Agenda packet, regular meeting — South Gate City Council, June 11, 2024 (part 1 of 2)

SOUTH GATE CITY COUNCIL

REGULAR MEETING AGENDA
Tuesday, June 11, 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 and Recreation

PLEDGE OF ALLEGIANCE:

Yodit Glaze, City Clerk
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 -
None
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 2 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
1, 2 , 3, 4, 5, 6, 7, 8, 9, 10, 11
and
12 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.

1. Ordinance No. 2024-03-CC granting a 10-Year Franchise to Pacific Pipelines

The City Council will consider: (PW)
a. Adopting
Ordinance No. 2024-03-CC
granting a ten-year franchise from April 9, 2024,
through and including April 8, 2034, to Pacific Pipeline System, LLC., to use, maintain, repair and replace a single pipeline beneath specified public streets, together with related appurtenances, for transmitting and distributing oil and oil products, within the City; and b. Appropriating the fees estimated in the amount of $24,348 to the General Fund Reserve.

Documents:

Item 1 Report 6112024.pdf

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 3 Contracting Procedures of the South Gate Municipal Code and the California Public Contract
Code

The City Council will consider making a finding and adopting a Resolution
declaring an
emergency still exists and authorizing repair, replacement or maintenance activities of public facilities related to the Urban Orchard, City Project No. 539-PRK, without public bidding, pursuant to the emergency contracting procedures of the South Gate Municipal Code and the California Public Contract Code. (PW)
Documents:

Item 2 Report 6112024.pdf

3. Resolution approving Parking Restrictions on Southern Avenue

The City Council will consider: (PW)
a. Adopting a
Resolution
to prohibit overnight parking on portions of Southern Avenue and
Southern Place adjacent to South Gate Park between the hours of 11:00 P.M. and 6:00 A.M.
of the day following; and

b. Approving finding that the Resolution prohibiting overnight parking is exempt from CEQ.

Documents:

Item 3 Report 6112024.pdf

4. Calling for the General Municipal/Consolidated Election of November 5, 2024

The City Council will consider: (CLERK)
a. Adopting a
Resolution
calling for the holding of a General Municipal Election to be held on Tuesday, November 5, 2024, for the election of certain officers and requesting the Board of Supervisors of the County of Los Angeles to consolidate the election with any and all elections also called to be held on Tuesday, November 5, 2024 and requesting the Board to render specified services to the City relating to the conduct of a General Municipal Election to be held on Tuesday, November 5, 2024;

b. Adopting a
Resolution
approving regulations for Candidates for Elective Office pertaining to Candidates' Statement submitted to the voters at the General Municipal Election to be held on Tuesday, November 5, 2024;
c. Adopting a
Resolution
to resolve a tie vote by lot using the Coin Toss Method for Elective Offices in the event of a tie vote at the November 5, 2024 Municipal Election; and d. Authorizing the City Clerk to issue a notice of a General Municipal Election to be held on
November 5, 2024.

Documents:
4 Item 4 Report 6112024.pdf

5. Resolution approving comprehensive successor Agreement with Unrepresented Executive Management Employee Group

The City Council will consider: (HR)
a. Adopting a
Resolution
approving the comprehensive successor Agreement between the City and the South Gate Executive Management for the term of July 1, 2024, through June 30, 2025; and
b. Authorizing the Mayor to execute the comprehensive successor Agreement in a form acceptable to the City Attorney.

Documents:

Item 5 Report 6112024.pdf

6. Resolution repealing Resolution No. 6454 (Salary Resolution and Position Classification Plan)

The City Council will consider: (HR)

1. Adopting a
Resolution
to Repeal Resolution No. 6454 (Salary Resolution and Position Classification Plan); and

2. Approving certain terms and conditions of employment.

Documents:

Item 6 Report 6112024.pdf

7. Amendment No. 2 to Contract No. 3396 with Mr. C’s Towing for towing and storage services

The City Council will consider: (PD)
a. Approving
Amendment No. 2
to Contract No. 3396 with Mr. C's Towing of South Gate, Inc., for the adjustments of towing and storage fees; and b. Authorizing the Mayor to execute Amendment No. 2 in a form acceptable to the City Attorney.

Documents:

Item 7 Report 6112024.pdf

8. Amendment No. 1 to Contract No. 2023-11-CC and Notice of Completion for the Firestone Boulevard Project

5 The City Council will consider: (PW)
a. Accepting completion of construction effective June 7, 2024, of The Boulevard Project, 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 Amendment No. 1 to Contract No. 2023-11-CC with FCG to fund additional construction management and inspection services that were required for The Boulevard Project, in an amount not-to-exceed $29,287; and
d. Authorizing the Mayor to execute Amendment No. 1 in a form acceptable to the City Attorney.

Documents:

Item 8 Report 6112024.pdf

9. Item Removed

Item removed from the Agenda.

10. Southern California Edison Service Request to provide Electrical Service to South Gate Police Department HVAC System - Southern California Edison Service Request No. 7590554408

The City Council will consider approving a Purchase Order to fund Southern California Edison Service Request No. 7590554408 which is necessary to secure dedicated service to the South Gate Police Station required as a part of the South Gate Police Department HVAC System, City Project No. 667-GEN, in the amount of $64,724. (PW) Documents:

Item 10 Report 6112024.pdf

11. Annual Adoption of the City’s Investment Policy

The City Council will consider adopting the City's Annual Statement of Investment Policy. (ADMIN SVCS)
Documents:

Item 11 Report 6112024.pdf

12. The Excess Workers’ Compensation Insurance Policy with Safety National Casualty Corporation

The City Council will consider: (HR)

6 a. Approving an excess workers' compensation insurance policy with Safety National, through Alliant for a one-year term of July 1, 2024, through July 1, 2025, with a premium in the amount of $197,408;
b. Authorizing payment, in the amount of $197,408, to Alliant for the policy issued by Safety National; and
c. Authorizing the Mayor to execute the "Request to Bind Coverage," "Program Commitment Agreement," or similar contract in a form acceptable to the City Attorney.

Documents:

Item 12 Report 6112024.pdf
Reports, Recommendations And Requests

13. Presentation of the Fiscal Year 2024/25 City Council Strategic Goals

The City Council will consider receiving Council Strategic Goal List and review proposed priority project list designed to support the City Council Goal list. Approve Council Goals and priority project list to set 2024 priorities. (CM)
Documents:

Item 13 Report 6112024.pdf

14. City of South Gate ADU Presentation

Following the conclusion of the Report, the City Council will consider: (CD) a. To receive and file.

Documents:

Item 14 Report 6112024.pdf

15. Warrant register for June 11, 2024

The City Council will consider approving the Warrant Register for June 11, 2024. (ADMIN SVCS)

Total of Checks: $ 1,509,724.09 Less: Voids $ (0.00)
Less: Employee Payroll Deductions $
(243,554.31)
Grand Total: $ 1,266,169.78 Documents:

Item 15 Report 6112024.pdf
7 Adjournment

I, Yodit Glaze, City Clerk, certify that a true and correct copy of the foregoing Meeting Agenda was posted on June 6, 2024, at 1:00 p.m., as required by law.

Yodit Glaze
City Clerk

GENERAL NOTICE TO THE PUBLIC
The City Council adopted new rules relating to the conduct of the public meetings, proceedings, and business in the City of South Gate on July 12, 2022, (Resolution 2022-38-CC) and go into effect on August 1, 2022. Resolution #2022-38-CC is available at the City Clerk’s Office.

MEETING SCHEDULE
Regular meetings of the City Council are held on the second and fourth Tuesday of each month, closed session meetings will commence at 5:30 p.m. unless posted otherwise on its agenda. The regular City Council meetings will commence at 6:30 p.m. Agendas are available at the following locations:

City Clerk
Office,
Public Notice Boards at City Hall, and on the
City’s web page at https://www.cityofsouthgate.org
The Public can sign up to receive automatic notices of postings of agendas for the City Council or any other Commission or Board of the City of South Gate. Visit the City webpage and click on the Agenda & Minutes icon. That will take you the page where an individual can enter their email in the “Email Updates” box to register.

PUBLIC COMMENT/PARTICIPATION
Any person may request to address a legislative body during a public meeting. The Presiding Officer will call upon those present in the Council Chambers first. After all speakers in the Chambers have spoken, the Presiding Officer will call upon those participating via zoom or teleconference.

Speakers are limited to three (3) minutes on any item listed on the agenda, including public hearings.

Under Comments from the Audience portion, speakers are also limited to a single three (3) minutes time limit. Comments from the Audience is initially limited to 45 minutes at each meeting. Any speaker still wishing to speak, that did not speak, will have an addition Comments from the Audience opportunity after the last business item is finished. The Presiding Officer may extend the time limit as long as there is no objection from the City Council as a body.

To ensure that the public is able to participate, the City provides the opportunity to submit their comments in person, virtually, email, phone call, mail and any other method which may become available. Methods of participation may be subject to change during other such times when a State of Emergency, Health Order or State Executive Order limits in-person participation.

CURFEW
In absence of a motion duly adopted by majority vote of the City Council, the Presiding Officer may adjourn the City Council meetings at 10:30 p.m. The Presiding Officer may ask the City Council if any agenda items listed should be continued or dealt with during the meeting. For those items to be continued, the City Council can direct the item be placed on the next City Council agenda or the current meeting may be adjourned to a time certain at which time the meeting shall be reconvened as an 8 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 Office of the
South Gate City Clerk Item No. 1
JUN - 5 202't
AGENDA IBuLL
Department Head:

For th,e Regular Meeting of; June 11, 2024
<, \ CityManager:

Ce'rvantes Rob ouston
SUBJECT: ORDINANCE GRANTING A FRANCHISE AGREEMENT TO PACIFIC PIPELINE SYSTEM, LLC.

PURPOSE: To adopt an ordinance granting a franchise renewal to Pacific Pipeline System, LLC., ("PPS") for their existing oil pipeline known as Pipeline No. 063 ("Pipeline 063"), for a 10-year term.

RECOMMENDED ACTIONS: The City Council will consider:
a. Adopting Ordinance No. 2024-03-CC granting a ten-year franchise from April 9, 2024, through and including April 8, 2034, to Pacific Pipeline System, LLC., to use, maintain, repair and replace a single pipeline beneath specified public streets, together with related appurtenances, for transmitting and distributing oil and oil products, within the City; and b. Appropriating the fees estimated in the amount of $24,348 to the General Fund Reserve.

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

Annual Fees Granting Fee Total
Year I $1,100 $12,943 $14,043
Year 2 to 10 $1,145 *$10,305
Total $2,245 $12,943 $24,348
* Assumes an annual CPI ixicrease of 2%.

There will be an increase in revenue. The annual amount received under the previous franchise agreement was $1,000 average per year for a grand total of $21,717 including the Granting Fee. Negotiations have increased that amount to $1,100 per year plus an aru'iual CPI increase for a total estimated revenue of $24,348 inclusive of a CPI increase and granting fee.

The granting fee is consistent with Section 13.10.010 (Rates - General), of Chapter 13.10 (Compensation), Division 1(Oil, Gas, and Water Pipelines), of Title 13 (Franchises) of the 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 aru'iual franchise fee in an amount agreed to by the applicant and the municipality, or an annual franchise fee computed by multiplying the l
10 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.

ANALYSIS: TheCityregulatesutilitycompaniesthathavefacilitiesthatoccupythepriblicright-of-way through francise agreements. The City's 10-year franchise with PPS expired on April 8, 2024. PPS provided a Letter of Interest to the City on March 11, 2024, stating their interest in renewing the franchise agreement for the pipeline located on Miller Way, between Garfield Avenue and Vinvale Terminal, which was granted under Ordinance No. 2321. Before the City can award a franchise, the California Public Utility Code Section 6232 et seq., requires a public hearing to introduce an ordinance granting the franchise agreement. This requirement was met at the public hearing held on the May 2, 2024 City Council Meeting.

The proposed Franchise Agreement is identical to the current Franchise Agreement except for its effective period, term, and fees. Highlights of the proposed Franchise Agreement include:
* Covers Pipeline No. 063.
@ AIO-yeartermfromApril9,2024toApril8,2034.
@ Tern'is 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 PPS 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 carg gasoline and diesel products, and are the only pipelines owned by PPS 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 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 Chapter 13. 14 (Special Provisions for Oil Pipelines), Division 1 (Oil, Gas and Water Pipelines), of Title 13 (Franchises) 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. PPS is required to submit certified test results for the pipelines subject to the provision of the Pipeline Safety Act of 1981. 2 11
BACKGROUND: PPS owns and operates two existing pipelines in the City ("Pipelines"). The Pipelines carg gasoline and diesel products and have been in place since at least 1994. They have been operated by several oil and pipeline companies under several City franchises. The Pipelines are covered by separate franchises, as follows:
@ Pipeline No. 063 is covered under Ordinance No. 2321. This ten-year ordinance was adopted on April 9, 2014 and expired on April 8, 2024. Pipeline No. 063 is a 14-inch diameter, 1/4-mile-long pipeline located on Miller Way, between Garfield Avenue and Vinvale Terminal. The pipeline services the Vinvale Terminal, which is a 35-acre terminal used to store gasoline and diesel fuel products for delivery by tanker trucks.
* Pipeline No. 2000 is covered under Ordinance No. 2337. The franchise expires on September 13, 2026. This pipeline is a 20-inch diameter, 1-mile-long pipeline located on Alameda Avenue, between Southem Avenue and the south City limit.

The franchise agreement covering Pipeline No. 063, Ordinance No. 2321, was adopted by the City Council on April 9, 2014, and expired on April 8, 2024. PPS has requested that the franchise be renewed for a 10- year term. South Gate Municipal Code, Section 13.08.010, allows the term of the franchise to be 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 Resolution will extend the term of the franchise for an additional ten years, cornrnencing retroactively on April 8, 2024, and expiring on April 8, 2034. 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 was the following:

Action Description Date
1 Adopt a Resolution declaring the intention to grant a franchise to PPS. 4/23/2024 2 Conduct a public hearing and introduce an ordinance granting a ten- year franchise to PPS. 5/28/2024
3 Adopt the Ordinance (Franchise) 6/1 1/2024
Renewal of the Franchise Agreement is recommended for the reasons following:
* Granting the Franchise Agreement to PPS will automatically bestow rights upon the City and create obligations that must be performed by PPS 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 PPS for any failure to properly perform PPS's obligations under the franchise. o Requires PPS 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 PPS's operations under the francise.
o Requires PPS to indemnify and defend the City from and against damages resulting from PPS's operations under the franchise.
3 12
o Obligates PPS, at its expense, to remove and relocate the Pipeline where necessary due to changes of grade, alignment, or width of public streets. o Obligates PPS to notify the City upon any sale, transfer, assignment or lease of the franchise or any rights granted thereunder.
o Requires PPS to provide a corporate surety bond, savings and loan certificates or shares which the City can use as liquidated damages should PPS fail to fulfill the Franchise Agreement requirements.
* Asnotedabove,FranchiseAgreement2321requirestofileannualreportswiththeCityconfirming the maintenance and operation of the Pipeline is in compliance with federal and state law. PPS 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 PPS.
o The California Governrnent 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 April 22, 2024.
o According to the State Fire Marshall, PPS "has been performing maintenance and inspections of the Pipelines pursuant to the California Safety Act and tr.s. Code of Federal Regulations (CFR). Pursuant to CFR, a pipeline operator must inspect its pipeline at intervals of not to exceed five years. Pipeline No. 063 was hydrostatically inspected on March 25 and March 28, 2024, and the Pipelines are in compliance with the requirements set forth by the Federal Department of Transportation Requirements." Compliance with CEQA: The Pipelines are determined to be categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15301 of the CEQA Guidelines. Section 15301 provides for exemption of the proposed pipeline firanchise, because the project consists of the operation of existing facilities, involving negligible or no expansion of an exiasting use.

ATT ACHMENTS: A.

Proposed Ordinance
Notice of Public Hearing
Ordinance No. 2321
Letter from the Office of State Fire Marshall
Location Map
KT:lc
4 13
Attachment A
ORDINANCE N0. 2024-03-CC

CITY OF SOUTH GATE

LOS ANGELES COUNTY, CALIFORNIA

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SOUTH GATE, CALIFORNIA, GRANTING A TEN (10) YEAR FRANCHISE RENEWAL TO PACIFIC PIPELINE SYSTEM, 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
WHEREAS, Pacific Pipeline System, LLC., a Delaware limited liability company ("PPS"), has requested, in accordance with California Public Utility Code Section 6231, that the City grant PPS a franchise for the use of one existing pipeline: a 1,363 foot long, 14-inch diameter pipeline located beneath part of Miller Way, Garfield Avenue and ending at the Vinvale Terminal located at 8601 Garfield Avenue ("Pipeline No. 063"); WHEREAS, on March 10, 2009, the City Corincil adopted Ordinance No. 2258 to extend the franchise agreement with the City of South Gate relative to Pipeline No. 063 for an additional five years from April 9, 2009 through and including April 8, 2014; WHEREAS, on September 9, 2014, the City Council adopted Ordinance No. 2258 to extend the franchise agreement with the City of South Gate relative to Pipeline No. 063 for an additional ten years from April 9, 2014 through and including April 8, 2024; WHEREAS, the franchise granted by Ordinance No. 2258 expired on April 8, 2024, and PPS wishes to enter into a new franchise with the City of South Gate relative to Pipeline No. 063, retroactive to April 9, 2024;
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 granting a ten-year term francise to PPS; WHEREAS, on May 2, 2024, a Notice of Public Hearing was published in the Los Angeles Wave, a newspaper meeting the statutory qualifications for publishing such notices; WHEREAS, on May 28, 2024, the City Council held a duly noticed Public Hearing to introduce an Ordinance granting a ten-year term franchise to PPS; and 1 AS13772.0860872 4880-5638-4694v2
14 WHEREAS, on the City Council adopted Ordinance No. granting a ten-year term francliise to PPS.

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 hereinafter 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 upon the public street, ways, alleys, and places in the City by means of pipes and appurtenances 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.

C) The word "Grantee" shall mean PPS, a Delaware limited liability company, which is the entity to whom the Franchise contemplated in this Ordinance is granted, and its lawful successors Or aSSlgnS.

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.

F) The phrase "Pipelines and Appurtenances" shall mean one or more pipes and/or pipelines used for conducting, transporting, conveying and carging 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, where located under, along, across or upon the public streets, ways, alleys, and places in the City.

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 carging 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 acla'iowledges 2 AS13772.0860872 4880-5638-4694v2
15 that Grantee has already installed two (2) "pipes" la'iown as Line 35 (4" diameter) and Line 63 (14" diameter) within the City of South Gate; the City further acknowledges that Grantee sold Line 35 in 2011 and the City granted a new Franchise to tl'ie buyer of Line 35; the City expressly agrees that the right to install, operate, maintain, use, repair, replace, relocate and remove Line 63, but not Line 35, 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.

SECTION 4: Term. The Franchise shall be for a term of ten (10) years cornmencing April 9, 2024 (immediately following the expiration of Grantor's prior Franchise for Line 63) and expiring April 8, 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 1(B) by voluntary agreement, or shall condemn and take the Franchise area under the power of eminent domain; or the Franchise is forfeited by the Grantee due to the Grantee's noncompliance with the terms and conditions of the Franchise.

C) The Grantee shall, within thirty (30) days after the passage of this Ordinance granting the Franchise, file with the City Clerk a written acceptance of the terms and conditions of this Ordinance: provided, however, that as to franchises granted to the United States of America, use will constitute acceptance.

SECTION 5: Insurance
A) On or before commencement of any franchise operations, the Grantee shall obtain or provide satisfactory evidence of having policies of liability and worker's compensation insurance from companies authorized to transact business in the State of California by the Insurance Commissioner of California as provided by Section 13.08.050 of Chapter

13.08, Division I of Title 13.

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 3 AS13772.0860872 4880-5638-4694v2
16 City Attorney, conditioned that Grantee shall well and tnily observe, fulfill and perform each condition of the Franchise and that in case of any breach of condition of the bond after thirty (30) day's 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 Attomey.

D) As an alternate to the filing of a bond, the Grantee may deposit with the City Clerk and assign to the City savings and loan certificates or shares, or both, in the same amount as required on such bond.

SECTION 6: Fee. The Grantee shall pay to the City the following fees pursuant to the following requirements:

A) An initial franchise fee of 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:

Pipe size (internal
diameter in inches)
0-4 .........................
6 8
10 12
14 16
18 20
22 24
26 28
30 4
Base rate per
lineal foot
$0.088

0.132

0.176

0.220

0.264

0.308

0.352

0.396

0.440

0.484

0.528

0.572

0.616

0.660
AS13772.0860872 4880-5638-4694v2
17 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. The annual fee for the first year, April 9, 2024, to April 8, 2025, shall be $1,100 plus a one-time granting fee of $12,943, after which the fee will increase annually according to the provisions of Section 6 (D).

D) The aru'irial 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 hunaed 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, within three (3) months after the expiration of the calendar year. A rate of ten percent (10%) per annum, or fraction thereof beyond thirty (30) days after payment due date and following ten (10) days after receipt by Grantee of written notice of such delinquency, may be charged as additional consideration.

G) Any neglect, omission or refusal by the Grantee to make any 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 after thirty (30) days' notice to cure has expires as provided for in Section 12.

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 of the Pipelines and Appurtenances;
B) Pay to the City, on demand, the cost of all repairs to public property made necessary by any operations of the Grantee under this Franchise, including restoring the Street to its 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 firom the failure of said Grantee well and faithfully to observe and perform each and every provision of this Franchise;
D) Install, remove or relocate, at the request of the City and without expense to the City, any Pipelines and Appurtenances installed, used and maintained under this Franchise if and when made 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 Title 13 (Franchises) of the South Gate Municipal Code; and F) Submit certified test results for the pipeline subject to the provision of the Pipeline Safety Act of 1981, California Governrnent Code Section 51010, et seq. The testing shall be conducted as required by the California State Fire Marshal, and certified test results shall be requested by the City from the Fire Marshal. In the event the State Fire Marshal shall 6 AS13772.0860872 4880-5638-4694v2
19 fail to provide such certified test results to the City, grantee shall provide such test results to the City upon request; and
G) 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 cornmencing 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 located with an 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 tunnel 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 Response Plan.

A) The Grantee shall develop and maintain an emergency response plan, satisfactory to the City Engineer, which covers all franchise operations within the City. In general, an emergency response plan meeting the requirements of Federal and State law and containing the information contained in this section shall be acceptable. The emergency response plan shall include a 24-hour notification program and proof of arrangements capable of providing emergency response services, including but not limited to traffic control, street excavation, pipeline repair, and supplies and services as necessary, within two (2) hours of notification of any problem, and such other information as the City Engineer shall reasonably require. Repairs to a 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 7 AS13772.0860872 4880-5638-4694v2
ff 20
change to 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 comtnence 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 adtninistrative overhead expenses, Grantee shall pay such costs to City within thirty (30) days after presentation to Grantee of an itemized account of such costs.

SECTION 11: Records.

A) Grantee acla'iowledges 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 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 8 AS13772.0860872 4880-5638-4694v2
21 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) If the Grantee shall fail, neglect or refuse to comply with any of the provisions or conditions of this Franchise, and shall not, within thirty (30) days after written demand for compliance, begin the work of compliance, or after cornrnencing 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) h'i 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 affected without detriment to the public interest and under what conditions such proposed abandonment or removal may be affected. 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 and be in force thirty (30) days after its adoption and upon written acceptance thereof is filed by the Grantee with the City Clerk of the City.
[Remainder of page left blank intentionally]
9 AS13772.0860872 4880-5638-4694v2
22 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 Ordinance and shall cause same to be published as required by law.

PASSED, APPROVED and ADOPTED this 11th day of June, 2024.

CITY OF SOUTH GATE:

By:

Gil Hurtado, Mayor
ATTEST:

By:

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

B37:

F. Salinas, City Attorney
10 AS13772.0860872 4880-5638-4694v2
14-23
SOUTH GATE PRESS Thls space Tiir flllng skump only
3731 WILSHIRE BLV[) STE 840, LOS ANGELES, CA 90015
Telephone (323) 556-5720 / Fax (213) 834-0584
Yodit Glaze, City Cterk

CITY OF SOUTH GATE /CITY CLERK
8650 CALIFORNIA AVE
SOUTH GATE, CA - 90280

PROOF OF PUBLICATION
(20i 5.5 c.c.p.)
State or Callfornia
County of LOS ANGELES
NOtlCe TYPei GPN - GOVT PUBLIC NOTICE
Ad Descrlptlon:

Introduclng Ordinance Granting a Franchlse Paclfic Pipeline I am a citizen of the Uniked States and a resldent of the State of Californla; I am over the age of eighteen years, and not a party (o or interested in the above entitled matter. I am the principal clerk of the printer and publlsher of the SOUTH GATE PRESS, a newspaper published in the English language In the city of SOUTH GATE, county of LOS ANGELES, and adjudged a newspaper of general circulation as deflned by the laws of the State of California by the Superior Court of the County of LO8 ANGELES, State of California, under date 04/"19/1929.CaseNo.2734l5. Thatthenotice,ofwhichtheannexedisa printed copy, has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the followtng dates, to-wit:

Office of 00')@
South Gate City Clerk
MAY - 6 2024
FILED
PRE#: 3809308
CITY OF SOtlTH (5ATE

NOTI(,E OF PUBLIC HHARING
NOTI(,E IS mR(:BY GlVENthal Ihe Cl}y Couni.ll
or South Gale, Cgllrornla wlll aonducl a publlc
hearlng to Inltoduce an Ordlnenta gtanllng a ten
(10) year Tranchlse to Pacific Plpallne System,
LL(;.. 10
appurienancesi far I/ansrnllllnn and
dlslrlbullng petrolsum producla.

Pacltlt. Plpellne System, LL€ ., and Its successois
proposed Onllnance, that Ihe oercenias wlll be
pald annually from the date of iris gianllng oT the
nanchlae. and In the event such oaymem Is not
mpraOdpeOBtBhde fOranl:InhBlan:wicllabnebfao7eel,leedW.eAdvlnplKeoicinlley CDAle;kE%Touffl>addgyu6ayno2inma0 Au4slness houis
TLOIMcEA'T61',30Np.m
Councll Chambers
South Gate Clly Hall
Bfl60 Callfomla Avenue
South Gate. CA 90280
NOTICJ 18 HF.R!BY GIVEN Ihal any end all
then there lesli'0 or presenl evldgnce upoFi sny
malter relallng Ihsrata.

NOTICE IS H):REBY GIVEN by order of Ihe Clly
Clerk Ol Bald Clly and Is daled April 2(1, 2[)24.
's/Yodit Glaze. Cilty Cilerk
512r24
PRE-3BO9308#
501JTH GATE PRE88
05/02{2C124
Executed on: 05/03/2024
At Los Angeles, Callfornla
cemfy (or declare) under penalty of perjury that the foregolng is true and correct.

Signa(ure
lIllIllIIllIlllIIllllIlllIIlIIIIIIIIIllIIIIIllIllIIIlllIIIIIIIIllIIlllIlll Emall
24 Attachment B

CITY OF SOUTH GATE
sowFia %:;lm.

APR 2 9 7a:a
FgL,E:D
NOT'lCE OF PUBIJC HP,ARING
NOTICE IS HEREBY GIVEN that the City Council of South Gate, Califo-inia will conduct a public lieariiig to introduce an Ordinance granting a ten (10) year franchise to Pacific Pipeline System, LLC., to use, maintain, repair and replace a sirtgle pipeline beneath specified public streets, togetlier with related appurtenances, for transmitting and distributing petrolerun products.

Pacific Pipeline System, 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 annually ftom the date of the granting of the franchise, and in the event such 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 norial business hours.

DATE:

TIME:

LOCATION:

Tuesday, May 28, 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 T-IEREBY GIVEN by order of the City Clerk of said City and is dated April 29, 2024,
Y odi laze, City Clerlc
Publication date: Thursday, May 2, 2024
Account Number: 100-701-31-6302
16- 25
Attachment C
i
ORDINANCE NO. -2321

CITY OF SOUTH GATE

LOS ANGELES COUNTY, CALIFORNIA

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SOUTH GATE GRANTING A TEN (10) YEAR FRANCHISE TO
PACIFIC PIPELINE SYSTEM, LLC, A Dr-l AW/(n[: LIMITED LIABILITY COMPANY ("PPS"), 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 PLACE8, AS THE SAME NOW OR MAY

HEREAFTER EXIST, WITHIN THE CITY OF SOUTH GATE
a
WHEREAS, Pacific Pipeline System, LLC, a Delaware limited liability company ("PPS"), has requested, in accordance with California Public Utility Code Section 6231, that the City grant PPS a franchise for the use of one existing pipeline (the "Pipeline"):
a 1,363 foot long, 14-inch diameter pipeline located beneath part of Miller Way, Garfield Avenue and ending at the Tesoro Vinvale Terminal located at 8601 Garfield Avenue ("Pipeline No. 063"); and
WHEREAS, the most recent such franchise pertaining to the Pipeline was granted on March 10, 2009, when the City Council adopted Ordinance No. 2258 granting an additional 5 year franchise renewal to-Pp.,, to operate the Pipeline; and WHEREAS, the franchise granted by Ordinance No. 2258 expired on April 8, 2014, and PPS wishes to enter into a new franchise agreement with the City of South Gate relative to Pipeline No, 063; and
WHEREAS, the City of South Gate, pursuant to applicable federal, state and local law, is authorized to grant franchises within the City of South Gate; and WHEREAS, on September 9, 2014, the City Council adopted Resolution No. 7623 declaring its intention to grant a franchise to PPS; and WHEREAS, on September 18, 2014, a Notice of Public Hearing was published in The Press, a newspaper meeting the statutory qualifications for publishing such notices, for a public hearing held on October 14, 2014; and
a
WHEREAS, on October 14, 2014, a public hearing was held to consider the introduction of an Ordinance but was unanimously continued to the City Council Meeting of November 10, 2014; and
l
26 WHEREAS, on November 10, 2014, the City Council held a public hearing and introduced Ordinance No. 2321.
i

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

SECTION1: Definitions. Whenever in this Ordinance the words or phrases hereinafter 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):

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.

C) The word "Grantee" shall mean PPS, 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.

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, where located under, along, across or upon the public streets, ways, alleys, and places in the City.

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 i
i
2 27
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 Grantee has already installed two (2) "pipes" known as Line 35 (4" diameter) and Line 63 (14" diameter) within the City of South Gate; the City further acknowledges that Grantee sold Line 35 in 2011 and the City granted a new Franchise to the buyer of Line 35; the City expressly agrees that the right to install, operate, maintain, use, repair, replace, relocate and remove Line 63, but not Line 35, is included among the rights granted in this Ordinance as part of the Franchise.

SECTION 4: Term. The Franchise shall be for a term of ten (10) years commencing April 9, 20'l4 (immediately following the expiration of Grantor's prior Franchise for Line 63) and expiring April 8, 20'l4, or until such earlier time that:
gi
A) The Franchise is voluntarily surrendered or abandoned by the Grantee, or assigned, transferred, sold or leased without the prior express written consent of the City, which assignment shall not be unreasonably withheld; or B) The State of California, the City, or some other municipal or public entity duly authorized by law shall purchase the Franchise area, as described in Section 1(B) by voluntary agreement, or shall condemn and take the Franchise area under the power of eminent domain; or the Franchise is fofeited by the Grantee due to the Grantee's noncompliance with the terms and conditions of the Franchise.

C) The Grantee shall, within thirl (30) days affer 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 SECTION 5: Insurance
a
A) On or before commencement of any franchise operations, the Grantee shall obtain or provide satisfactory evidence of having policies of liability and worker's compensation insurance from companies authorized to transact business in the State of California by the Insurance Commissioner of California as provided by Section 13.08.050 of Chapter 13.08, Division I of Title 13.

B) The Grantee shall file with the City Clerk prior to commencement of any franchise operations, either certified copies of the policies or a certificate of insurance for each of the required policies executed by the company issuing the policy, certifying that the policy is in force and as provided by Section 13.08.050 of Chapter 13.08, Division I of Title 4 3.
3 fl 28
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 ($'l0,000) 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 affer 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.

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 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 623al.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:

Pipe size (internal
diameter in inches)
0-4
6 8
10 12
14 Base rate per
lineal foot
$0.088

0.132

0.176

0.220

0.264

0.308
4 29
i
gi
i

0.352

0.396

0.440

0.484

0.528

0.572

0.616

0.660
C) For pipelines with an internal diameter not listed above, the fees shall be in the same Proportion to the fees of a 12-inch-diameter pipe as the diameter of the unlisted pipe is to 12 inches.

D) The annual payment for each lineal foot of pipeline shall be computed and revised each calendar year as follows:
(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 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.
(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 'I, of Title 13 of the South Gate Municipal Code and shall be due and payable annually during the term of the Franchise and subject to adjustment in accordance with paragraph B and D of Section 6, within three (3) months after the expiration of the calendar year. A rate of ten percent (10%) per annum, or fraction thereof beyond thirty (30) days after payment due date and following ten (10) days after receipt by Grantee of written notice of such delinquency, may be charged as additional consideration
5 30
G) Any neglect, omission or refusal by the Grantee to make any such payment as and when due, or to file any related statement, certification or verification as to the required payment reasonably required by the City, at the times or in the manner required herein and in the Pipeline Franchise Ordinance, shall be grounds for the declaration of a forfeiture of the Franchise and of all rights hereunder after thirty (30) days' notice to cure has expires as provided for in Section 12.

H) The Grantee shall file with the City Clerk, within three (3) months after the expiration of the calendar year following the effective date of its Franchise, a 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.
l) 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 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 of the Pipelines and Appurtenances;
B) Pay to the City, on demand, the cost of all repairs to public property made necessary by any operations of the Grantee under this Franchise, including restoring the Street to its 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 6 27!-
31 resulting from the failure of said Grantee well and faithfully to observe and perform each and every provision of this Franchise; D) Install, remove or relocate, at the request of the City and without expense to the City, any Pipelines and Appurtenances installed, used and maintained under this Franchise if and when made 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 certified test results for the pipeline subject to the provision of the Pipeline Safety Act of 19E31, California Government Code Section 51C)10, et seq. The testing shall be conducted as required by the California State Fire Marshal, and certified test results shall be requested by the City from the Fire Marshal. In the event the State Fire Marshal shall fail to provide such certified test results to the City, grantee shall provide such test results to the City upon request; and G) Submit a written petition of franchise renewal to the City at least ninety (90) days prior to the expiration date.
gi
SECTION 9: Permits. The Grantee shall obtain an excavation permit, and pay the applicable fee therefore, prior to commencing any excavation in the right-of-way.

The Grantee may obtain an excavation permit by filing a set of excavation plans with the City Engineer, which plans shall be subject to the City Engineer's review and approval.

The excavation plans shall show the location of the proposed excavation, as well as the location of all known existing pipes, sewers, conduits, improvements and other facilities in or under any Street or public property in which the franchise property is located with an 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 4, of Title 13 of the South Gate Municipal Code.

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 7 32
curb and the property line. The Grantee shall provide adequate traffic safety barriers, signs, devices and traffic safety warning equipment in accordance with City ordinances, rules or regulations, and shall comply with such additional safety measures as the City Engineer may direct.

SECTION 10: Emergency Equipment.

A) The Grantee shall develop and maintain an emergency response plan, satisfactory to the City Engineer, which covers al! franchise operations within the City. In general, an emergency response plan meeting the requirements of Federal and State law and containing the information contained in this section shall be acceptable. The emergency response plan shall include a 24-hour notification program and proof of arrangements capable of providing emergency response services, including but not limited to traffic control, street excavation, pipeline repair, and supplies and services as necessary, within two (2) hours of notification of any problem, and such other information as the City Engineer shall reasonably require. Repairs to a 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 8 33
i
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, Grantee shall pay such costs to City within thirty (30) days after presentation to Grantee of an itemized account of such costs.

SECTION 11: Records.
a
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 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.

SECTION 12: Failure to Comply.

A) If the Grantee shall fail, neglect or refuse to comply with any of the provisions or conditions of this Franchise, and shall not, within thirty (30) days after written demand for compliance, begin the work of compliance, or afier 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.
9 ,2.!>
34 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 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 and be in force thirty (30) days after its adoption and upon written acceptance thereof is filed by the Grantee with the City Clerk of the City.
[Remainder of page left blank intentionally]
10 35
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 Ordinance and shall cause same to be published as required by law.

PASSED, APPROVED AND ADOPTED this 25fh day of November 2014.

CITY OF SOUTH GATE:
:"o:.i'!.,a!-o
ATTEST:
iz
Carmen Avalos,
(SEAL)
,,
City Clerk
AP OVED A O FORM:

R I F. Salinas, City Attorney
i
kl
36 ORDINANCE CERTIFICATION PAGE

STATE OF CAIJFORNIA

COUNTY OF LOS ANGELES ) SS

CITY OF SOUTH GATE
I, Carmen Aivalos, City Clerk ofthe City of South Gate, California, hereby certify that thewhole number ofMembers ofthe City Council of said City is five; that OrdinanceNo. 2321 was adopted by the City Council at their Regular Meeting held on November 25, 2014, by the following vote:

Ayes: Council Members: Gonzalez, Davila and Hurtado Noes: Council Members: None

Absent: Council Members: Morales and De Witt
i Abstain: Council Members: None
Witness my hand and the seal of said City on November 1, 2014.

Carmen Avalos, City Clerk
City of South Gate, California
d 37
Attachment D
Post-Inspection Written Preliminary Findings
This document is for informational purposes only. It does not commit PHMSA or state pipeline safety regulators to any of the findings, analyses, determinations, conclusions or other information contained herein. All the findings, analyses, determinations, conclusions or other information in the document are preliminary in nature and subject to change without notice, at the discretion of PHMSA or state pipeline safety regulators. The absence of findings, analyses, determinations, conclusions or other information in this document does not constitute an approval of an operator's facility, records, or procedures. Future inspections or investigations may identify additional matters of concern regarding topics that were covered during this inspection.

Date of Transmittal: 04/22/2024
Dates of Inspection: 3/25-28/2024
Operator: PLAINS PIPELINE, L.P.

Operator ID: 300 (primary)
Inspection Systems: N/A
Assets (Unit IDs) with results in this report: IUs 0830 C 0830D System Type: HL
Inspection Name: Plain STD Annual Pipeline IUs 0830 C 0830D Lead Inspector: Bita Emami
Operator Representative: Bill Senner, Sr, Health, Safety & Environmental Specialist, Plains Unsatisfactory Results
No Preliminary Findings.

Concerns
No Preliminary Concerns.

This document is for informational purposes only. It dos not commit PHMSA or state pipeline safety regulators to any of the findings, analyses, determinations, conclusions or other information contained herein. All the findings, analyses, determinations, conclusions or other information in the document are preliminary in nature and subject to change without notice, at the discretion of PHMSA or state pipeline Plain STD Annual Pipeline IUs 0830 C
0830D Page 1 of 2
38 safety regulators. The absence of findings, analyses, determinations, conclusions or other information in this document does not constitute an approval of an operator's facility, records, or procedures. Future inspections or investigations may identify additional matters of concern regarding topics that were covered during this inspection.

Plain STD Annual Pipeline IUs 0830 C
0830D Page 2 of 2
20 39

PACIFIC PIPELINE SYSTEM LLC
March 11, 2024

VIA EMAIL
Mr. Ashford Ball, MPA
City of South Gate
Depaitment of Public Works
8650 California Avenue
South Gate, CA 90280
Dear Mr. Ball,
Pacific Pipeline System, LLC cunently has a 10-year pipeline Franchise Ordinance #232 l with the City of South Gate for Line 063. This Franchise Ordinance expires on April 8, 2024. Please accept this written notice that Pacific Pipeline System LLC would like to proceed with renewing this Franchise Ordinance with the City of South Gate.

Pacific Pipeline System LLC's Right of Way consultant for this project is Paragon Partners Consultants, Inc. ("Paragon"). Paragon will provide the City of South Gate with any additional information you or your staff may require processing this renewal, If you have any questions or to request information, please contact Melissa Devitt at Paragon. Ms. Devitt can be reached by telephone at (714) 471-9497 or by email at mdevitt@para,oon-partners.com Thank you For your time and consideration.

Sincerely,
Senior Director
Land & Contracts
333 CLAY STREET, SUITE 1600, HOUSTON, TEXAS 77002 40 Attachment E

LOCATION MAP
I l)
x.//
PrACIFIC PIPELINE SYSTEM LLC:,
32,. 41
Office of the
South Gate City Clerk
Item No. 2
JUN - 5 2024
FILED City of South Gate
'2:'LAPS

CITY COUNCIL
,Al:-Sg,L-Z-)=i 'E'-=.:,-[/-L,
Department Director
For the Regular Meeting of: June 11, 2024
a g ent: Public Works
o Cervantes Rob Houston
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-Pa 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 constniction 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 constmction 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 1 42
Council terminated the general contractor's agreement at a Special City Council meeting on February 6, 2023. Such termination provided both immediate and long-ternn cost savings to the 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 83 l.54.470 and California Public Contract Code 83 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 Corincil 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. Approved a funding increase for TPL in the amount of $50,000. On January 24, 2023, the City Council approved a $250,000 budget for Amendment No. 6 to Contract No. 3352 with TPL; however, Amendment No. 6 had a budget requirement of $300,000. A budget increase of $50,000 was administratively approved to align the amount of the budget authority with the $300,000 budget requirement for Amendment No. 6, which provides funding for the technical services required to comply with requirements from the LEA.

3. The LEA has approved the Summary of Investigations Report, Workplan of Interim Control Measures ("WICM"), Supplemental WICM and Phase II Workplan. The WICM safety measures were completed May of 2023. 2 43

4. The City coordinated with the Trust for Public Land ("TPL") to procure a replacement contractor: 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). Work was completed as of April 2024, including the following: backfill of overflow stnicture at the south wetland, north wetland slope stabilization, backfill of the reservoir, installation of three vaults adjacent to the Bandini Channel, construction of the easement road, electrical on site lighting.

5. Methane gas monitoring was completed in December 2023 and low traces of methane were detected at one probe; however, the amount is below regulatory requirements

6. The LEA approved the Report of Finding of the Phase II Work Plan, with contingencies. The preparation of the Post Closure Land Use Plan (PCLUP) is now rinder way. It is planned to be submitted expeditiously. 7, 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.

8. 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 '[JWS property. Work has been completed.

9. 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, which was needed to oversee the import of 9,300 cubic yards of soil.

10. Amendment No. 7 to Contract No. 3352 with the Trust for Public Land was approved administratively in the amount of $522,072. The scope of service includes, (a) Program Management, (b) design services to revise the design plans to rebid construction, (c) construction support, (d) additional methane monitoring required by Los Angeles County Department of Public Health Solid Waste Division, (e) preparing the Post Closure Land Use Plan required by Los Angeles County Department of Public Health Solid Waste Division, and (f) extending the contract term to December 31, 2024.

BACKGROUND: The Project is a part of the FY 2023/24 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 stornn water run-off from the Los Angeles River and to install a new park to provide riverfront recreational opportunities.

The Project is being constructed on a property that was used as an unpermitted landfill until 1949 by an entity known as Southeastern Disposal and By-Products. The property site is identified in 3 44
CalRecycle's Solid Waste Infornnation 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 pro5ect site is subject to State solid waste regulations that reqriire 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 Corinty 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 90% 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 ligliting. Construction of the project will resume after the County approves the CPLUP.

The Project has received the listed grants.

Grants Amount Grant Recipient
State Water Resource Control Board (Prop 1) $7,975,100 City
Land and Water Conservation Fund (LWCF) $3,000,000 Los Angeles County Flood Control District $530,000 Safe Clean Water- Municipal Funds $1,435,401
Safe Clean Water- Regional Funds $5,438,000
State Parks- Prop. 68 Grant $1,919,847
Conservation Corp of Long Beach $713,015
Caltrans $5,000,000
Rivers and Mountains Conservancy Funds $4,404,798 TPL Private Donations $90,000
Total $30,506,161
ATTACHMENT: Proposed Resolution
GD:lc
4 45
RESOLUTION NO.

CITY OF SOUTH GATE

LOS ANGELES COUNTY, CALIFORNIA

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTH

GATE, ST ATE OF CALIFORNIA, DECLARING AN EMERGENCY STILL

EXISTS AND AUTHORIZING REPAIR, REPLACEMENT OR

MAINTENANCE ACTIVITIES OF PUBLIC FACILITIES RELATED TO

THE URBAN ORCHARD PROJECT WITHOUT PUBLIC BIDDING,

PURSUANT TO THE EMERGENCY CONTRACTING PROCEDURES OF

THE SOUTH GATE MUNICIPAL CODE AND THE CALIFORNIA

PUBLIC CONTRACT CODE
WHEREAS, at the Special City Council meeting on February 6, 2023, the City Council for the City of South Gate ("City") considered and passed a Resolution declaring an emergency and authorized the repair, replacement or maintenance activities of public facilities related to the Urban Orchard Project ("Project") pursuant to the emergency contracting procedures of 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 contractor; WHEREAS, although no construction activities will occur at the Project site until the County iSSues its PCLUP, it will be necessary in the interim for certain minimal maintenance activities to be performed at the site for the protection of the existing improvements and/or for public safety (collectively, the "Maintenance Activities") as well as complete the improvements approved by the County under the Workplan for interim measures; WHEREAS, at a special meeting of the South Gate City Council ("Council") held on Monday, February 6, 2023, the Council received information provided by the City's Public Works Department establishing that the City does not have sufficient manpower to 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
46 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 Surnrnary of Site Investigation lias been complete4; 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 irnrnediate 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, THEREFORE, THE COUNCIL OF THE CITY OF SOUTH GATE, CALIFORNIA, DOES HEREBY RESOLVES AS FOLLOWS:

SECTION 1. The City Council does hereby declare that the above recitals and findings are true and correct and incorporated herein by reference.

SECTION 2: Pursuant to the authority granted by South Gate Municipal Code § 1.54.470 and California Public Contract Code Fg 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 worild 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 deternnine, by a four-fifth's vote, that there is a

Page 2 of 3 ends

47 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 11th day of June 2024.

CITY OF SOUTH GATE:

BY:

Gil Hurtado, Mayor
ATTEST:

BY:

Yodit Glaze, City Clerk
(SEAL)
APPROVED AS O FORM:
61 F. Salinas, City Attorney

Page 3 of 3 ends

*7"-
48 Office of the
South Gate City Clerk Item No. 3
JUN - 5 2024
FILED
2!'10frl
City of South Gate

CITY COUNCIL
p((2rEj71l'I!2),,A aL-L'-
For the Regular Meeting of: June 11, 2024
00 i i I,partment: Public Works
DepartmentHead: ,/"7 ! CiyManager:

AMtr Cervantes Rob Houston
SUBJECT: PROHIBITING OVERNIGHT PARKING ON PORTIONS OF SOUTHERN

AVENUE AND SOUTHERN PLACE
PURPOSE: ToadoptResolutionpursuanttoSection8.12.O10oftheSouthGateMunicipalCode to prohibit parking on portions of Southern Avenue and Southern Place between the hours of 11:00 P.M. of each day until 6:00 A.M. of the following day.

RECOMMENDED ACTIONS: The City Council will consider:
a. Adopting a Resolution to prohibit overnight parking on portions of Southern Avenue and Southern Place adjacent to South Gate Park between the hours of 11:00 P.M. and 6:00 A.M. of the day following; and
b. ApprovingfindingthattheResolutionprohibitingovernightparkingisexemptfromCEQA.

FISCALIMPACT: Thecostofpostingovernightparkingprohibitionsisestimatedat$6,000,to be funded byrestricted fiinds. Routine parking enforcement expenses may be offset by citation fees payable by violators.

ANALYSIS: Section 8.12.010 ("Regulations Adopted by City Councir') of the South Gate Municipal Code states that, with limited exceptions not applicable here, regulations pertaining to vehicle parking must be establishedby resolution ofthe City Council. Furthermore, Section 8.12.060 ("Tow-Away Zone") of the South Gate Municipal Code allows the City Council, by resolution, to designate no-parking zones as tow-away zones. Accordingly, the Public Works Department is asking that the City Council adopt a Resolution to do the following things:
* Prohibitparkingbetweenthehoursofll:OOP.M.ofeachdayuntil6:OOA.M.ofthe followingdayasfollows: (a)onthesouthsideofSouthernAvenuebetweenHildreth Avenue and Vossler Avenue, (b) on the north side and south side of Southern Avenue between Vossler Avenue and Benson Way, and (b) on the north side and south side of Southern Place between Vossler Avenue and Park Place. * Designate those areas as tow-away zones between said hours. * Make the finding that this matter is exempt from CEQA as a Class 1 exemption.

I
49 BACKGROUND: On their East end, Southern Avemie and Southern Place front South Gate Park and the LADWP utility corridor. These areas have limited visibility from the general public as compared to streets in residential neighborhoods and are therefore used for overnight parking.

Overnight parking activity is a concern. The Los Angeles Fire Department Station 54 is located at the intersection of Sorithern Avenue and Southern Place. Fire Department personnel at that station requested that the Cityprohibit street parking onthe portion of Southern inthe vicinity ofthe station, citing concerns over vehicle break-ins. Also, the City is informed that homes just east of the Fire Station have evening and overnight issues with people parking on Southern Avenue, south of their homes. A resident requested a preferential parking district; however, that would not be allowed by the municipal code, because it is not in a residential community. Finally, the Parks and Recreation Department also cited issues with overnight parking adjacent to the South Gate Park due to related activities.

Staff recommends that overnight parking be prohibited from 11:00 P.M. to 6:00 A.M. as means to resolve the issues. This solution balances the competing needs of South Gate residents relative to limited parking availability, access to the adjacent City park, and public safety. It was ultimately determined that a complete prohibition on parking in that vicinity was not necessary, and that prohibitions on overnightparking on certainportions of SouthernAvenue and Southern Place would suffice to minimize the risk illegal activity while maximizing vehicle parking available to City park users during the park's normal operating hours. The City Council may implement this solution by adopting the proposed Resolution.

Any action undertaken by a public agency such as the City which has a potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment constitutes a "project" under the California Environmental Quality Act, codified at California Public Resources Code §§ 21000 et seq. ("CEQA"), unless specifically exempt. Many such actions and projects are specifically exempted by State administrative regulations known as the "CEQA Guidelines", which are codified at Division 6 of Title 14 of the California Code of Regulations. Here the City Council can reasonably find this project to be Categorically Exempt from CEQA under those CEQA Guidelines as a Class 1 exemption, found at 14 CCR § 15301. The Class 1 exemption consists, among other tliings, of tlie operation of existing l'iigl'iways and streets involving negligible or no expansion of existing rise.

ATT ACHMENTS: A.

Proposed Resolution
Parking Restrictions Exhibit
AC/CH/JL:lc
2 50
Attachment A
RESOLUTION NO.

CITY OF SOUTH GATE

LOS ANGELES COUNTY, CALIFORNIA

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTH

GATE, CALIFORNIA, PROHIBITING OVERNIGHT PARKING AND

ESTABLISHING CORRESPONDING TOW-AWAY ZONES ON

PORTIONS OF SOUTHERN AVENUE AND SOUTHERN PLACE
WHEREAS, Section 8.12.010 of the South Gate Municipal Code authorizes this City Council to adopt, by resolution, regulations pertaining to vehicle parking; and WHEREAS, the City has received a request to limit parking on certain portions of Southern Avenue and Southern Place in response to the frequent occurrence of thefts from vehicles parked on those roads in the overnight hours; and WHEREAS, this matter has been studied by the City's Public Works Department and the City's Parks & Recreation Department; and
WHEREAS, as a result of those studies, the City's Public Works Department has advised this City Council that the closure of portions of those streets to overnight parking would help reduce the instances of such criminal activity while maintaining availability of vehicle parking to users of the adjacent City park during the park's normal operating hours;

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 true and correct and incorporated herein by this reference.

SECTION 2. Pursuant to South Gate Municipal Code Section 8.12.010, the City Council hereby declares that parking shall be prohibited between 11:00 p.m. of each day until 6:00 a.m. of the following day on the following portions of Southern Avenue and Southern Place within the sides of the street as noted:

A. South side of Southern Avenue between Hildreth Avenue and Vossler Avenue.

B. North and Sorith side of Southern Avenue between Vossler Avenue and Benson Way.

C. North and South side of Southern Place between Vossler Avenue and Park Place.

SECTION3. Pursuant to South Gate Municipal Code Section 8.12.060, the City Council hereby declares that each of those portions of Southern Avenue and Southern Place is designated as a "tow away zone" during the hours specified in Section 2 above.

I
AS13772.0860872 4871-7951-7117vl
3 51
SECTION 4. The City Council hereby directs the Director of Public Works to cause signage to be posted in accordance with South Gate Municipal Code Section 8.12.060 and California Vehicle Code Section 22651, giving notice that any vehicle parked in any such "tow-away zone" may be removed.

SECTION 5. The City Council hereby makes the following findings of fact:

A. Any action undertaken by the City of South Gate which has a potential for resulting in either a direct physical change in the enviroru'nent or a reasonably foreseeable indirect physical change in the environment constitutes a "project" under the California Environmental Quality Act, codified at California Public Resources Code §§ 21000 et seq. ("CEQA"), unless specifically exempt.

B. Many such actions and projects are specifically exempted by State administrative regulations known as the "CEQA Guidelines", which are codified at Division 6 of Title 14 of the California Code of Regulations
C. Included among those exemptions is the Class 1 exemption, found at 14 CCR F3 15301. The Class 1 exemption consists, among otlier things, of tlie operation of existing liigliways and streets involving negligible or no expansion of existing use.

D. This Resolution and the actions mandated by this Resolution pertain to tlie operation of existing liigliways and streets and involve negligible or no expansion of the existing use of tliose highways and streets.

E. This Resolution and the actions mandated by this Resolution are therefore exempt from CEQA under the Class 1 exemption set forth in the CEQA Guidelines.

SECTION 6. The City Council does hereby declare that if any section, subsection, sentence, clause, phrase or portion of this Resolution or its application thereof is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the Resolution. The City Council hereby declares that it would have adopted this Resolution, and each and every section, subsection, sentence, clause, phrase, or portion thereof not declared invalid or unconstitutional without regard to whether any portion of the Resolution would be declared invalid or unconstitutional. [Remainder of page left blank intentionally]
2 AS13772.0860872 4871-7951-7117vl
4 52
SECTION 7. The City Clerk shall certify the adoption of this Resolution which shall be effective upon its adoption.

PASSED, APPROVED, and ADOPTED on this 11th day of June 2024.

CITY OF SOUTH GATE:

BY:

Gil Hurtado, Mayor
ATTEST:

By:

Yodit Glaze, City Clerk
(SEAL)
F. Salinas, City Attorney
3 AS13772.0860872 4871-7951-7117vl
53 EXHIBIT"B"
NO OVERNIGHT PARKING (11:00 PM TO 6:00 AM)
5:1
54 Item No. 4
JUN 4 202't
FILED City of South Gate
ZUOf?l CITY COUNCIL

AGENDA BNLL
City Clerk:

For the Regular Meeting ofi June 11, 2024
Originating Department: Office of the City Clerk
City Manager: /2!
at Glaze Rob Houston
SUBJECT: G MUNICIPAL/CONSOLIDATED ELECTION TO BE
HELD TUESDAY, NOVEMBER 5, 2024
PURPOSE: Calling for the holding of the South Gate General Municipal Election as required by the California Elections code.

RECOMMENDED ACTIONS: The City Council will consider:
a. Adopting a Resolution calling for the holding of a General Municipal Election to be held on Tuesday, November 5, 2024, for the election of certain officers and requesting the Board of Supervisors of the County of Los Angeles to consolidate the election with any and all elections also called to be held on Tuesday, November 5, 2024 and requesting the Board to render specified services to the City relating to the conduct of a General Municipal Election to be held on Tuesday, November 5, 2024; b. Adopting a Resolution approving regulations for Candidates for Elective Office pertaining to Candidates' Statement submitted to the voters at the General Municipal Election to be held on Tuesday, November 5, 2024;
c. Adopting a Resolution to resolve a tie vote by lot using the Coin Toss Method for Elective Offices in the event of a tie vote at the November 5, 2024 Municipal Election; and
d. Authorizing the City Clerk to issue a notice of a General Municipal Election to be held on November 5, 2024.

FISCAL IMPACT: Included in the FY 2024-25 Proposed Budget is $230,000 from the General Fund, forthe estimated cost forthe consolidated ofthe Municipal Election withthe County of Los Angeles Primary Election. The total cost ranges from $230,000 - $270,000. Not included in the budgeted election costs are additional fees in the case of a Special Runoff Election.

ANALYSIS: Pursuant to California Elections Code 12101 (a), the City Council is reqriired to adopt the attached Resolutions not earlier than the 127'h day and not later than the ll3'h day 55 before any municipal election to fill offices and the City Clerk/elections official shall publish a notice of election in the city pursuant to Govemment Code Section 6061. The Municipal Election is being held for the purpose of electing three (3) Members to the City Council for the full term of forir (4) years.

BACKGROUND: Senate Bill 415 mandates that all elections for general law cities in California align with the state's election cycle. In the County of Los Angeles there will be a general election held on November 5, 2024. Pursuant to SB 415, the City of South Gate having less than 25% of its voter population casting a vote indicates that tlie City is mandated to align its General Municipal election with the state's election cycle. As a result, the Los Angeles County Registrar Recorder/Corinty Clerk's Office is tasked with coordinating all election efforts with the various cities holding regularly scheduled General Municipal Elections on November 5, 2024.

The Notice of Election will be published before July 15, 2024, once in both English and Spanish in the Los Angeles WAVE Newspaper and La Opinion to comply with requirements from the Department of Justice. In addition, copies of said notice shall be posted at Hollydale Library, Leland R. Weaver Library, and City Hall in both languages, and on the City's website.

The estimated cost to conduct a Special Runoff Election is projected to be higher than that of the November 5, 2024, General Municipal Election because the City would not be consolidating election costs with the County of Los Angeles. However, the City Council does have the option of conducting a Special Runoff Election in-lieu of a coin toss to resolve a tie vote. The chances of a tie vote are remote; therefore, the need to resolve this occurrence is unlikely.

Section 15651 (a) and (b) of the California Elections Code authorizes the City Corincil, by a majority vote, to adopt provisions to require the conduct of a Special Runoff Election to resolve a Tie vote involving those candidates who receive an equal number of votes and are tied for the second highest votes for an elective office in the case of the City Corincil. A Special Runoff Election shall be held only if the City Council adopts a Resolution prior to November 5, 2024; however, the City Clerk and Election Staff are recommending that a tie vote be resolved using the Coin Toss Method.

ATT ACHMENTS: A. Proposed Resolution (Consolidate Election) B. Proposed Resolution (Candidate Statement)
C. Proposed Resolution (Tie Vote - Coin Toss Method) D. Notice of Election (English/Spanish)
56 Attachment A
RESOLUTION NO.

CITY OF SOUTH GATE

LOS ANGELES COUNTY, CALIFORNIA

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTH GATE, CALIFORNIA,

CALLING FOR THE HOLDING OF A GENERAL MUNICIPAI, ELECTION TO BE HELD ON TUESDAY, NOVEMBER 5, 2024, FOR THE ELECTION OF CERTAIN OFFICERS AND

REQUESTING THE BOARD OF SUPERVISORS OF THE COUNTY OF LOS ANGELES TO

CONSOLIDATE THE ELECTION WITH ANY AND ALL ELECTIONS ALSO CALLED TO BE HELD ON NOVEMBER 5, 2024 AND REQUESTING THE BOARD OF SUPERVISORS OF THE

COUNTY OF LOS ANGELES TO RENDER SPECIFIED SERVICES TO THE CITY RELATING

TO THE CONDUCT OF THE CITY OF SOUTH GATE GENERAL MUNICIP AL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 5, 2024
WHEREAS, a General Municipal Election shall be held on November 5, 2024, for the election of three (3) Members of the City Council;
WHEREAS, pursuant to the Elections Code Section 10002, the City Council of tlie City of South Gate may by resolution request the Board of Supervisors of the County of Los Angeles to permit the County Clerk to render specified services to the City of South Gate relating to the conduct of an election; WHEREAS, subject to approval of the Board of Supervisors, these services shall be provided by the County Clerk;
WHEREAS, pursuant to Elections Code Section 10002, unless other arrangements satisfactory to the County have been made, the City shall reimburse the County in full for the services performed upon presentation of a bill to the City;
WHEREAS, pursuant to Elections Code Section 10400, whenever two or more elections, are called to be on the same day, in the same territory, or in territory that is in part the same, they may be consolidated upon the order of the City Council calling the elections; WHEREAS, the resolution requesting the consolidation shall be adopted and filed at the same time as the adoption of the ordinance, resolution, or order calling the election; and WHEREAS, various local elections may be or have been called to be held on November 5, 2024.

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 true and correct and are incorporated herein by this reference.

SECTION 2. That pursuant to the requirements of the laws of the State of California relating to general law cities, there is called and ordered to be held in the City of South Gate, California on Tuesday, November 5, 2024, a General Municipal Election for the purpose of electing three (3) members of the City Council for the full term of four (4) years.

Page 1 of 2 ends

57 SECTION 3. That the City Council hereby orders the election to be consolidated with any and all elections also called to be held on November 5, 2024, insofar as said elections are to be held in the same territory or in territory that is in part the same as the territory of the City of Sorith Gate and requests that the Board of Supervisors of the County of Los Angeles order such consolidation under Elections Code Sections 10401, 10402, and 10403.

SECTION 4, That the City Council liereby requests the Board of Supervisors of the County of Los Angeles to permit the Los Angeles County Registrar-Recorder/Corinty Clerk-Elections Division to provide any and all services necessary for conducting the election and agrees to pay for said services.

SECTION 5. That the County Elections Division is authorized to canvass the returns of the City of South Gate General Municipal Election, and the election shall be held in all respects as if there is only one election.

SECTION 6, That the vote centers for the election shall be open as required during the identified voting period from October 26, 2024, to November 5, 2024, pursuant to Sections 4007 and 14401 of the Elections Code.

SECTION 7. That in all particulars not recited in this Resolution, the election shall be held and conducted as provided by law for holding municipal elections.

SECTION 8, That notice of the time and place of holding the election is given and the City Clerk is authorized, instnicted, and directed to give further or additional notice of the election, in time, form and manner as required by law.

SECTION 9. The City Clerk shall certify to the adoption of this Resolution, which shall be effective upon its adoption.

SECTION 10. That the City Clerk is hereby authorized and directed to file a certified copy of this Resolution with the Board of Supervisors of the County of Los Angeles and the Los Angeles County Registrar-Recorder/County Clerk-Elections Division.

PASSED, APPROVED and ADOPTED this 11th day of June 2024.

CITY OF SOUTH GATE:

BY:

Gil Hurtado, Mayor
ATTEST:

BY:

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

Raul F. Salinas, City Attomey

Page 2 of 2 ends

58 Attachment B
RESOLUTION NO.

CITY OF SOUTH GATE

LOS ANGELES COUNTY, CALIFORNIA

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTH GATE, CALIFORNIA,

ADOPTING REGULATIONS FOR CANDIDATES FOR ELECTIVE OFFICE PERT AINING

TO CANDIDATE STATEMENTS SUBMITTED TO THE VOTERS AT THE GENERAI, MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 5, 2024 WHEREAS, Section 13307 of the Elections Code of the State of California provides that the governing body of any local agency may adopt regulations pertaining to materials prepared by any candidate for a Municipal Election, including costs of the Candidate's Statement; and WHEREAS, the City Council of the City of South Gate seeks to adopt such regulations with respect to the General Municipal Election of November 5, 2024;

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SOUTH GATE, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1. GENERAI, PROVISIONS
Pursuant to Section 13307 of the Elections Code of the State of California, each candidate for elective office to be voted for at an Election to be held in the City of South Gate on November 5, 2024, may prepare a candidate's statement on an appropriate form provided by the City Clerk. The statement may include the name, age and occupation of the candidate and a brief description of no more than 200 words of the candidate's education and qualifications expressed by the candidate himself or herself. The statement shall not include party affiliation of the candidate, nor membership or activity in partisan political organizations. The statement shall be filed in typewritten form in the Office of the City Clerk at the time the candidate's nomination papers are filed. The statement may be withdrawn, but not changed, during the period for filing nomination papers and until 5:00 p.m. of the City's next working day after the close of the nomination period.

SECTION 2. FOREIGN LANGUAGE POLICY
A. Pursuant to the Federal Voting Rights Act, candidates' statements will be translated into all languages required by the County of Los Angeles. The County is required to translate the candidate's statement into the Spanish language in addition to English.

B. Pursuant to state and federal law, the candidate's statement must be translated and printed in the voter's pamphlet in any required language as mandated.

C. The City Clerk shall comply with the following requirements

1. Translation

2. a. Have all candidates' statements translated in required (Spanish) languages.

Printing
a. Print a bilingual voter sample ballot book in English and Spanish. b. PrintalltranslationsofstatementssubjecttoSection3paymentrequirements,atthe request of the candidate, including his or her candidate statement in the sample

Page 1 of 3 ends

59 ballot or voter information guide as specified by the Los Angeles County Clerk printing in English and Spanish.
c, Have all translations made available upon request in the Office of the City Clerk.

SECTION 3. PAYMENT
A. Translation

1. The Candidate shall not be required to pay for the cost of translating the candidate's statement into any mandated foreign language as specified in (A) and/or (B) of Section 2 above pursuant to federal and/or state law.

2. The Candidate shall be required to pay for the cost of translating the candidates statement into any foreign language that is not required as specified in (A) and/or (B) of Section 2 above pursuant to federal and/or state law.

B. Printing

1. The Candidate shall be required to pay for the cost of printing the candidate's statement in English in the sample ballot or voter infonation guide as specified by the Los Angeles County Clerk.

2. The Candidate shall be required to pay for the cost of printing the candidate's statements in a foreign language in (A) of Section 2 above, in the sample ballot or voter information guide as specified by the Los Angeles County Clerk.

3. The Candidate shall be required to pay for the cost of printing the candidate's statement in a foreign language by the candidate per (B) of Section 2 above in the sample ballot or voter information guide as specified by the Los Angeles County Clerk.

4. The Candidate shall not be required to pay for the cost ofprinting the candidate's statement in a foreign language required by (A) of Section 2 above, in the facsimile or electronic version of the sample ballot or voter information guide as specified by the Los Angeles County Clerk.

The City Clerk and/or County Clerk shall estimate the total cost of printing, handling, translating, and mailing the candidate's statements filed pursuant to this section, including costs incurred as a result of complying with the Voting Rights Act of 1965 (as amended), and require each candidate filing a statement to pay, in advance to the City, his or her estimated pro rata share as a condition of having his or her statement included in the sample ballot or voter information guide as specified by the Los Angeles County Clerk. In the event the estimated payment is required, the estimate is just an approximation of the actual cost that varies from one election to another election and may be significantly more or less than the estimate, depending on the actual number of candidates filing statements. Accordingly, the City Clerk and/or County Clerk is not bound by the estimate and may, on a pro rata basis, bill the candidate for additional actual expense or refund any excess paid depending on the final actual cost. In the event of underpayment, the City Clerk and/or County Clerk may require the candidate to pay the balance of the cost incurred. In the event of overpayment, the Clerk shall prorate the excess amount among the candidates and refund the excess amount paid within 30 days of the election.

Page 2 of 3 ends

60 SECTION 4. MISCELLANEOUS
A. All translations shall be provided by professionally certified translators B. The City Clerk shall allow (bold type) (underlining) (capitalization) (indentations) (bullets) (leading hyphens) to the same extent and manner as allowed in previous City elections.

C. The City Clerk shall comply with all recommendations and standards set forth by the California Secretary of State regarding occupational designations and other matters relating to elections.

SECTION 5. ADDITIONAL MATERIAJ,S
No candidate will be permitted to include additional materials in the sample ballot or voter information guide as specified by the Los Angeles County Clerk.

SECTION 6. The City Clerk shall provide each candidate or the candidate's representative a copy of this Resolution at the time the nomination petitions are issued.

SECTION 7. All previous resolutions, if any, establishing council policy on payment for Candidate's statements are repealed.

SECTION 8. This Resolution shall apply to the election to be held on November 5, 2024, and shall then be repealed.

SECTION 9. The City Clerk shall certify to the adoption of this Resolution, which shall be effective upon its adoption.

PASSED, APPROVED and ADOPTED this Ilth day of June 2024.

CITY OF SOUTH GATE:

BY:

Gil Hurtado, Mayor
ATTEST:

BY:

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

B7: #,df € :, f3
Raul F. Salinas, City Attorney

Page 3 of 3 ends

61 Attachment C
RESOLUTION NO.

CITY OF SOUTH GATE

LOS ANGELES COUNTY, CALIFORNIA

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTH GATE,

CALIFORNIA, RESOLVING A TIE VOTE BY LOT USING THE COIN TOSS METHOD FOR ELECTIVE OFFICES IN THE EVENT OF A TIE VOTE AT THE NOVEMBER 5, 2024 MUNICIPAL ELECTION
WHEREAS, Section 15651 of the Elections Code of the State of California authorizes the City Council, by majority vote, to adopt provisions by which a tie vote shall be resolved.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SOUTH GATE, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1. Pursuant to Section 15651 (b) of the Elections Code of the State of California, if two or more persons receive an equal and the highest number ofvotes for an office to be voted forwithin the City, the City Council shall summons only those candidates who received the tie votes, at a time and place to be designated by the City Clerk. The City Clerk shall at that time and place determine the tie by lot using the "Coin Toss Method" in accordance with the procedures set forth in Section 3, below. (Alternative Method: In lieu of resolving a tie vote by lot as provided in subdivision (a), the legislative body of any City not subject to the Unifornn District Election Law may resolve a tie vote by the conduct of a special runoff election involving those candidates who received an equal number of votes and the highest number of votes.)
SECTION 2. The provisions of Section 1 shall apply only to the election to be held on November 5, 2024, and shall then be repealed.

SECTION 3. The procedure used for the determination of the winner using the coin toss shall be attached to this Resolution as Exhibit "A" and that such be signed by the candidates who are tied. [Remainder of page left blank intentionally.]

Page 1 of 2 ends

62 SECTION 4. The City Clerk shall certify to tlie adoption of this Resolution, which shall be effective upon its adoption.

PASSED, APPROVED and ADOPTED this 11th day of June 2024.

CITY OF SOUTH GATE:

By:

Gil Hurtado, Mayor
ATTEST:

B7:

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

By:

U/ '<r!:;=7"city,=,tt-4€

Page 2 of 2 ends

63 PROCEDURE FOR COIN TOSS FOR DETERMINATION OF THE WINNER It is proposed that a toss of a coin be used to deiei-n'une the winner of tlie tie election in the manner which follows:

Selection of Coin
l) A U.S. minted dollar coin shall be used in the
tOSS.
2) Tlie coin shall be obtained by the Elections
Official rrom the City Finance Department or
from a local bank.
3) Both candidates shall be allowed to examine the selected coin.

Candidates' Witnesses
1) Each candidate shall select one person, of his/her choice, to act as a witness.
2) The witness shall verify the results of the
drawing of cards and the coin toss, but shall not
touch either the cards or the coin.

Selection of Person to Call Coin
1) Each candidate shall write his/her name on five separate 3"x 5" index cards.
2) The ten index-cards shall then be folded once
and placed in a solid colored container.
3) One card shall be drawn from the container by
the Elections Official and shown to the (Head of
the Legislative Body*), the two candidates, and
the two witnesses.
4) The Election Official (or Head of the Legislative Body*) shall announce who shall call the toss.

Method of Tossing Coin
l) The coin shall be tossed by the Election Official (or Head of the Legislative Body*), to a height
of at least six feet, flipping end over end. If the proper height or form is not attained, the
Elections Official shall call a fault before the
coin l'iits the grorind, and the coin shall be tossed agaui.
2) The call must be nude by the selected candidate
after the coin leaves the hand, but before it
begins its decent to tlie floor. If the call is not made before it begins its decent, the Elections
Official shall call a fault before the coin hits the ground and the coin shall be tossed again.
3) The coin shall be allowed to fall directly to the floor and come to rest without interference of
any kind, including but not limited to, contact
with the following: any person, any person's
apparel, chairs, tables, walls, wires, or draperies. rf the coin comes iii contact with any object
except the floor, the Elections Official shall call a fault before the coin comes to a rest, and the
coin shall be tossed agairi.
4) No person shall touch the coin until the
Legislative Body declares the result.

Verification of Result
l) The Election Official ( or Head of the Legislative Body*) and the two witnesses shall view the coin
first and agree on the result, without touching the Cain.
2) Once the results have been so verified, the two
candidates may view the coin, without touching
it.
3) Following this, the remaining men'ibers of the
Legislative Body shall view the coin, without
touching it.
4) Following tis, all other interested parties may view the coin, without touching it.

Declaration of Result
1) Once all interested parties have viewed the coin, The Election Official (or Head of the Legislative
Body*) will announce the winner of the toss and
entertain a motion to declare the winner of the
toss the winner of the election.
2) Once the Legislative Body has acted to declare
the winner, the coin shall be picked up.
3) The declaration shall be put in the appropriate
written form (Resolution declaring the Results of
the Election, Form 17A), signed by the (Head of
the Legislative Body*) and transmitted to
Elections Official of the Legislative Body.
"'Head of Legislative Body can be defined as:

Mayor of a City or Town Council
President of a Board of Directors or Board of
Trustees
Acknowledged and Understood by:

Candidate Date
Candidate Date
64 Attachment D

NOTICE OF ELECTION
NOTICE IS HEREBY GIVEN that a General Municipal Election will be held in the City of South Gate on Tuesday, the 51'1 day of November 2024 for tl'ie following Officers:

For three (3) Members of the City Corincil Full term of four (4) years The nomination period for these offices begins on Monday, July 15, 2024 and closes on Monday, August 12, 2024 at 5:30 p.m.

If no one or only one person is nominated for an elective office, appointment to the elective office may be made as prescribed in Section 10229 of the Elections Code of the State of California.

The vote centers for the election shall open on Saturday, October 26, 2024 and close at 8:00 p.m. on November 5, 2024 providing a I0th day voting oppotunity, pursuant to Sections 4007 and 14401 of the California Elections Code.

Yodit Glaze, City Clerk
65 AVISO DE ELECCION
POR MEDIO DE LA PRESENTE SE DA AVISO qrie una Elecci6n Municipal General tendrA lugar en la Ciudad de Soutli Gate, el dia martes, 5 de noviembre de 2024, para elegir a los siguientes oficiales:

Para tres (3) Miembros
del Concejo Municipal Pleno plazo de cuatro (4) arios El periodo de nominaci6n para estas oficinas comienza el lunes, 15 de julio de 2024 y cierra el lunes, 12 de agosto de 2024 a las 5:30 p.m.

Si nadie o s61o una persona es nominada para un puesto elegido, nombramiento a tal puesto electivo puede ser hecho segan estA prescrito por la Seccion 10229 del C6digo de Elecciones del Estado de California.

Los centros de votaci6n (casetas) estarAn abiertos por rin periodo de 10 dias comenzando el sabado 26 de octubre de 2024 y cocluyendo el 5 de noviembre de 2024, a las 8:00 p.m., segun esta prescrito en la Secci6n 4007 y 14401 del C6digo de Elecciones del estado de California.

Yodit Glaze, Secretaria Municipal
66 Office of the
South Gate City Clerk Item No. 5
JUN - 5 202'l
FILED
2a'lr@rl City of South Gate

CITY COUNCIL
ACENDA IBI[LL
For the Regular Meeting of: June 11, 2024
Originating ent: Human Resources
Htuixan Resources Director:

Rob ouston
SUBJECT: RESOLUTIO APPROVING A COMPREHENSIVE SUCCESSOR .tCP,nRThfEPJT COVERING JTJLY 1, 2024, THROUGH JUNE 30, 2025, WITH THE

SOUTH GATE UNREPRESENTED EXECUTIVE MANAGEMENT EMPLOYEE GROUP
PURPOSE: To approve the comprehensive successor Agreement ("Agreement") between the City of South Gate ("City") and the South Gate Unrepresented Executive Management Employee Group ("Executive Management") covering the time period of July 1, 2024, through June 30, 2025, which shall supersede all previous Agreements, Amendments, Side Letters and Tentative Agreements between the City and Executive Management.

RECOMMENDED ACTIONS: The City Council will consider:
a. Adopting a Resolution approving the comprehensive successor Agreement between the City and the South Gate Executive Management for the term of July 1, 2024, through June 30, 2025; and
b. Authorizing the Mayor to execute the comprehensive successor Agreement in a form acceptable to the City Attorney.

FISCAL IMPACT: There is no fiscal impact from adopting the Resolution approving the comprehensive successor Agreement with Executive Management as all fiscal impacts were approved in the Fiscal Year 2024/2025 Adopted Budget.

BACKGROUND: Historically, all Executive Management employees have been covered by a singular, comprehensive Agreement, which outlined all benefits and conditions of employment to which such employees were entitled. However, changes implemented in a previous city management administration resulted in a different approach to how Executive Management entitlements shall be provided as new executive managers were compelled to enter into individualized contracts rather than be subject to a singular, comprehensive Agreement.

While, in theory, this approach attempted to slowly reduce the benefits to which an Executive Management employee would be entitled, some consequences of this approach were unforeseen and caused administrative difficulties. First, the degradation of entitlements resulted in a loss of 1 67
entitlements for any individual promoting from within the organization, whether from the Police Management Association ("PMA") to Chief of Police, or from the Division Management Association ("DMA") to a Director-level position. For the Chief of Police, this caused him to relinquish his ability to accrue an unlimited amount of Administrative Leave, which he could have cashed out upon retirement. Instead, he was forced to cash out his accrued Administrative Leave bank prior to his promotion from Police Captain to Chief of Police. Similarly, for the Deputy Director of Parks & Recreation, it caused liim to be in a perpetual "Interim Director" position so that he did not lose the entitlements guaranteed to him under the DMA Memorandum of Understanding. This singular, comprehensive Agreement provides the necessary adjustments to ensure that no person promoting within the organization from PMA or DMA loses any benefits and/or entitlements for accepting a higher-level position. In fact, this singular, comprehensive Agreement provides "carve out" provisions to preserve those benefits for those currently provided to legacy Executive Management that are greater than that of the new Executive Management employees, or restores some of the benefits lost by the Chief of Police as a result of his promotion.

Second, this comprehensive Agreement provides equity to all positions in Executive Management to guarantee consistency in the benefits and entitlements. This ensures for greater ease in the administration of such benefits/entitlements as well as fairness and clarity to the employees as to what exactly the benefits may be to which he/she is entitled. For example, some employees were receiving 120 hours/year of Administrative Leave, while others were receiving 60 hours/year of Administrative Leave, and another was receiving 50 hours/year of Administrative Leave. When compared to the Administrative Leave benefit a DMA employee is receiving (80 hours/year of Administrative Leave), some Executive Management employees were receiving less than that of their subordinates. Additionally, it should be noted that the industry standard for Executive Management employees in other cities ranges from 100 to 120 hours/year. To correct this, all Executive Management employees will now earn 100 hours/year of Administrative Leave and, for two of the legacy Executive Management employees earning 120 hours/year, a carve out is inserted to ensure that he/she continues to accrue at this rate.

Third, this comprehensive Agreement also provides a mechanism for those Executive Management employees, who are entitled to cash out a high amount of accrued sick or administrative leave at the time of separation, the ability to receive this cash out benefit over a three-year period preceding his/her retirement. This provision is beneficial to the City as well because it reduces the financial impact of this cash out by spreading it out over three years.

Finally, this Agreement provides for a pay increase for Executive Management employees of at least 4.0% for the Chief of Police and at least 3.0% for the non-sworn members (Directors) effective the first full pay period of July 2025. This pay increase guarantees that the Executive Management positions will be increased at the same rate as the PMA or DMA positions directly subordinate to them. That is, all PMA members are entitled to a negotiated 4.0% base pay increase effective the first full pay period of July 2024, and all DMA members are entitled to a negotiated 3.0% base pay increase effective the first full pay period of July 2024. However, the MOUs for both PMA and DMA require their members to contribute an additional 1.O% towards the employer CalPERS contribution as a cost sharing requirement. This Agreement provides that Executive Management employees will also contribute an additional 1.O%, which shall be 2 68
effective on January 1, 2025. Currently, Executive Management employees are contributing 1 % toward the employer CalPERS contribution and this will increase it to a total of 2%.

In reaching the terms and conditions of this singular, consolidated Agreement, all Directors and the Chief of Police had an opportunity to review the Agreement and provide his/her input. The result of this collaborative effort between the City Manager and the Executive Management employees is the proposed Agreement. To ensure that all Executive Management employees agree with this Agreement, each one of the impacted employees personally signed it; however, since the City Manager is the representative authority for all unrepresented employees, any future iteration of this Agreement need only be signed by the City Manager and approved by the City Council to be effective.

ATTACHMENT: Proposed Resolution (including Attachment A - Comprehensive Successor Executive Management Agreement for 2024-2025)
3 69
RESOLUTION NO.

CITY OF SOUTH GATE

LOS ANGELES COUNTY, CALIFORNIA

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTH

GATE, CALIFORNIA, APPROVING A COMPRF,HENSIVE SUCCESSOR AGREEMENT COVERING JULY 1, 2024, THROUGH JUNE 30, 2025,

WITH THE SOUTH GATE UNREPRESENTED EXECUTIVE

MANAGEMENT EMPLOYEE GROUP
WHEREAS, the City has historically outlined all benefits and conditions of employment for Unrepresented Executive Management Employee Group ("Executive Management") employees in a singular, comprehensive Agreement;
WHEREAS, changes to this approach implemented in a previous city management administration has resulted in Executive Management employees to have individualized employment contracts;
WHEREAS, the individualized employment contracts have caused a degradation of entitles below those offered to subordinate employees, a complete loss of rights and benefits for some Executive Management employees, and an inequitable distribution of entitlements amongst a similarly situated class of employees;
WHEREAS, the re-establishment of a singular, comprehensive Agreement will restore certain lost entitlements to current employees, provide equity and fairness of entitlement for all Executive Management classifications, and ensure that these positions have entitlements equal to or greater than that of their subordinates;
WHEREAS, this Agreement establishes the benefits, entitlements, and conditions of employment for all Executive Management employees for Fiscal Year 2024/2025, which includes, inter aria, defined base wage increases and an increase in the amount Executive Management employees pay toward the employer CalPERS contributions; WHEREAS, the Executive Management employees all had an opportunity to collaborate on the terms the Agreement, provide their input, and agree by affixing their signatures to the Executive Management Agreement; and
WHEREAS, the Executive Management Agreement provides for all benefits, entitlements, and conditions of employment for the Executive Management employees for the term of July 1, 2024, to June 30, 2025.
[Remainder of page left blank intentionally.]
Page l of 2
zx
70 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SOUTH GATE, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1. The City Corincil does hereby declare that the above recitals are true and correct and incorporated herein by reference.

SECTION 2. The City Corincil does hereby accept, approve and adopt the comprehensive successor Agreement between the City of South Gate and the Unrepresented Executive Management Employee Group for the term of July 1, 2024, through June 30, 2025, attached hereto as Exhibit "A."
SECTION 3. The City Clerk shall certify to the adoption of this Resolution which shall be effective upon its adoption.

PASSED, APPROVED and ADOPTED tis Ilth day of June 2024.

CITY OF SOUTH GATE:

BY:

Gil Hurtado, Mayor
ATTEST:

By:

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

DRAFT
BY:

Raul F. Salinas, City Attorney

Page 2 of 2 ends

S 71
Attachment "A"
Contract No.

AGREEMENT

BETWEEN THE

CITY OF SOUTH GATE

AND THE
UNREPRESENTED EXECUTIVE MANAGEl\/IENT

EMPLOYEE GROUP
JULY 1, 2024, TO JUNE 30, 2025
6 72

TABLE OF CONTENTS

ARTICLE I

SECTION I
SECTION 2
SECTION 3
SECTION 4
SECTION 5
SECTION 6
SECTION 7
SECTION 8
SECTION 9
SECTION 10
SECTION 11
SECTION 12
SECTION 13
SECTION 14
SECTION 15
SECTION 16
SECTION 17
4 4
4 4-6
3 3
6-7
8 8

GENERAL PROVISIONS

RECOGNITION AND GENERAL PROVISIONS

CURRENT AND SUPPLBMENTAL AGREEMENTS

NONDISCRIMINATION

DURATION

CITY RIGHTS
"AT WILL" EMPLOYMENT, TERMINATION,

AND SEVERANCB PLAN

DRESS CODES

IMDEMNIFICATION
BONDING . 8

PERSONNEL RULES AND REGULATIONS

PROBATION PERIOD

WORKWEEK AND HOURS

ELECTRONIC CHECK DEPOSIT

SUBSTANCE ABUSE

SMOKE FREE POLICY

EMPLOYEE ACKNOWLEDGEMENT OF RECEIPT OF OFFICIAL
DOCUMENTS 9
EXCLUSION FROM CIVIL SERVICE RULES AND REGULATIONS.. 9 8 8
8 -9
9 9
9 ARTICLE II
SECTION 1
SECTION 2
SECTION 3
SECTION 4
SECTION 5
SECTION 6
SECTION 7
SECTION 8
SECTION 9

SALARIES AND ALLOWANCES

PAY INCREASES IMPLEMENT ATION
WAGES

MERIT BASED STEP INCREASE

WITHHOLDINGS

EDUCATIONAL REIMBURSEMENT
VEHICLE AlLOWANCE

EDUCATIONAL INCENTIVE PAY

UNIFORM ALLOWANCE (SWORN ONLY)
11 -12
12 12

ARTICLE III
SECTION 1
SECTION 2
SECTION 3
SECTION 4
SECTION 5
SECTION 6
SECTION 7

FRINGE BENEFITS

HEALTHCARE INSURANCE

LIFE INSURANCE
VOLUNTARY LIFE INSiJRANCE

RETIREMENT

DEFERRED COMPENSATION

FITNESS
LONG TERM DISAJ3ILITY
13 13
13 13
13-15
15 15 -16
16 1
7 73

ARTICLE IV

SECTION I
SECTION 2
SECTION 3
SECTION 4
SECTION 5
SECTION 6
SECTION 7
SECTION 8
SECTION 9
SECTION 10
SECTION 11
SECTION 12

LEAVE POLICIES

HOLIDAY LEAVE

VACATION

SICK LEAVE
JURY DUTY .

LEAVE WITHOUT PAY

MATERNITY LEAVE

FAMILY MEDICAL LEAVE ACT/CALIFORNIA FAMILY

RIGHTS ACT

BEREAVEMENT

JOB RELATED INJURY OR ILLNESS

MILITARY LEAVE

ADMINISTRATIVE LEAVE

PERSONAL BUSINESS LEAVE

ARTICLE V
SECTION 1
SECTION 2
SECTION 3

IMPLEMENT ATION OF AGREEMENT

MODIFICATIONS

EFFECT OF W AIVER

ENTIRE AGREEMENT

SIGNATURE PAGE
2 17
17 -18
18 -19
19 -22
.. 22
22 -23
23 ..23
23 24
..24
24-26
29 8
74 ARTICLE I

GENERAL PROVISIONS
SECTION 1 RECOGNITION AND GENERAL PROVISIONS
The City Manager andthe City Council have designated the followingpositions as falling within the scope of the Unrepresented Executive Management Employee Group ("Executive Management" or "Employees") and, in accordance withthe provisions ofthe Fair Labor Standards Act (FLSA), have designated the following positions as exempt from minimum wage and overtime requirements of the FLSA:

Assistant City Manager
Chief of Police
Director of Administrative Services
Director of Community Development
Director of Human Resources
Director of Parks & Recreations
Director of Public Works
Other classifications may be designated as executive management from time to time as deemed appropriate by the City Manager and the City Council. The City Manager may combine two of the above positions (e.g., Assistant City Manager/Director of Public Works) and the combined position shall remain covered by this Agreement.

Employees may be subdivided in tbis Agreement into two categories: Sworn employees, which includes the Cief of Police (hereinafter "Sworn Employees"); andMiscellaneous employees, which includes the Assistant City Manager, Director of Administrative Services, Director of Community Development, Director of Human Resources, Director of Parks & Recreation, and Director of Public Works (hereinafter "Miscellaneous Employees").

The City Manager of the City of South Gate has the authority to appoint, promote, discipline, demote, and remove any offices and employees of the City except the City Clerk, CityTreasurer, and the CityAttorney, pursuantto the Cityof South GateMunicipal Code Section 1.06.060 (Power and Duties), of Chapter 106 (City Manager), of Title l (Administrative and Personnel).

Employees subject to this Agreement must remain in the exclusive employment of the City and not to become otherwise employed wbile tbis Agreement is in effect, without prior, written approval of the City Manager. The term "employed" shall not be construed to include occasional teaching, writing, or consulting performed outside of normal City business hours, or on Employee's time off with the prior, written approval of the City Manager.
3 9
75 SECTION 2 CURRENT AND SUPPLEMENT AL AGREEMENTS
It is the intent of the City and Employees that this Agreement supersedes all previous agreements or understandings either written or oral regarding, but not limited to, matters relating to wages, hours, and terms and conditions of employment between Executive Management employees, as represented by the City Manager, and by the City of South Gate ("City"). Tbis Agreement contains the entire understanding between the parties on all matters related to the employees' working conditions, rights, duties, and benefits. No amendment, change, orvariationhereofshallbevalidorbindingiu'ilessreducedtowriting by the City Manager and approved by the City Council.

SECTION 3 NONDISCRIMINATION
The City and Employees agree that, in applying the terms oftbis Agreement, 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 expression, age, sexual orientation, veteran ormilitary status, political beliefs and affiliations, orunion affiliation of any person or from any other reason prohibited by law.

SECTION 4 DURATION
This Agreement shall be effective from July 1, 2024, through Jtu'ie 30, 2025, and shall supersede any previous agreements, any amendments, resolutions or side letters thereto, shall become effective only after adoption by the City Council of the City of South Gate.

In the event there is no successor agreement in place following June 30, 2025, this Agreement shall remain in full force and effect until such time that a successor agreement is ratified and approved by the City Council.

All provisions in this Agreement become effective on July 1, 2024, unless an earlier date is approved in a specific provision.

SECTION 5 CITY RIGHTS
A. Except as otheise specifically provided, the City has and retains the sole and exclusive rights and functions of management, including, but not limited to, the following:

1. To determine the nature, standards, and extend of services to be performed, as well as the rightto determine andimplement its public functionandresponsibility.

2. To manage all facilities and operations of the City, including the methods, means, and numbers and kinds of personnel by which the City operations are to be conducted.
3, TO contract and/or transfer out work.
4 10
76 4. To direct the working forces, including the right to hire, assign, promote, demote, or trarisfer any employee.

5. To assign work to and schedule employees in accordance with requirements as determined by the City, and to establish and change work schedules and assignments upon reasonable notice.

6. To discharge, layoff, suspend, demote, reprimand, witbhold salary increases and benefits, or otherwise discipline employees in accordance with applicable law.

7. To determine policies, procedures, and standar4s affecting the selection, training, m'id promotion of employees.

8. To establish, assess, and implement employee performance standards, including, but not limited to, quality and quantity standards; the assessment of employee performances; and the procedures for said assessment.

9. To establish and enforce dress and grooming standards.

10. To determine time, reasons, methods, and means to relieve its employees from duty because of lack of work, lack of funds, or other lawful reasons.

11. To maintain the efficiency of governrnental operations

12. To determine safety, health, and property protection measures.

13. To detemine methods of financing.

14. To determine style and/or types of City-issued weating apparel, equipment, or tecbnology to be used.

15.To determine and/or change the facilities, methods, technology, means, organizational stnicture, and size and comparison of the work force, and to allocate and assign work by which the City operations are to be conducted.

16. To determine and change the number of locations, relocations, and types of operations, means, methods, processes, equipment, and materials to be used in caring out all City functions, including, but not limited to, the right to transfer work out of the unit, contract for, or subcontract any work or operations of the City.

17. To establish, modify, detene, or eliminate job classifications.

18. To take all necessary actions to CELITY out its mission in emergencies.

19. To exercise complete control and discretion of its organization and the technology of performing its work.
5 11
77 20. To take such other and further action as may be necessary to organize and operate the City in the most efficient and economical manner and in the best interest of the public it serves.

B. Executive management recognizes that the City has and will continue to retain, whether exercised ornot, the iu'iilateral and exclusive right to operate, administer, and manage its municipal services and work force, performing those services in all respects subject to this Agreement.

SECTION 6 "AT WILL" EMPLOYMENT, TERMINATION AND SEVERANCE PLAN Employees are "at wilr' and shall serve at the pleasure of the City Manager pursuant to Section 1.06.060(C) of the South Gate Municipal Code. As such, the City mm'iager may terminate an Employee's employment at any time with or without cause, and with or without advancenotice. Anewlyappointed City Managermaynotterminate anEmployee without cause until at least six months after the City Council duly appointed him/her to the position.

Employees may be terminated with cause for disciplinary reasons, or without cause or laid-off at the sole discretion of the City Manager. In the event an Employee is terminated without cause by the City at any time the Employee is still willing and able to perform his/her duties, the City shall provide six (6) months' base salary upon termination, less ordinary deductions for taxes and other customary withholdings, provided; however, that said severance payment shall also be deemed as consideration for, and is conditioned upon, a full and complete written release of any and all claims, if any, by the Employee arising out of his/her employment relationship with the City, including a waiver of California Civil Code § 1542. Said release shall not extend to any claim for Workers' Compensation benefits, which the Employee may seek and shall not prohibit him/her in any way from participating in any state or federal administrative action or investigation.

An Employee may be terminated for cause for actions including, but not limited to:
a. Conviction of any illegal act involving personal gain to the employee; b, Conviction of any felony, irrespective of the charge; c. Conviction of any misdemeanor involving charges of moral turpitude, fraud or any act of misappropriation of public funds while working for the City, or; d. As found by the City Council, upon the recotnmendation of the City Manager, to have:
(1) Been in gross neglect or dereliction of his/her duties, including willful or repeated violation of the following examples of conduct, which shall constitute cause for disciplinary action up to, and including discharge of an employee:
a) Willfully or cornuptly making any false statements, certificates, marks, ratings, reports, failing to disclose material facts or in any manner committing or attempting any fraud.
b) Incompetence.
c) Inefficiency.
d) Neglect of duty.
6 12
78 e) Insubordination.
f) Dishonesty.
g) Violation of City's Drug Free Workplace Policy. h) Intemperance.
i) Absence without authorized leave.
j) Conviction of a felony or conviction of a misdemeanor involving moral turpitude. 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.
k) Immorality
l) Discourteous treatment of the public or other employees, including sexual harassment.
m) Improper political activity.
n) Willful disobedience.
o) Misuse of property owned by, leased to, or under the charge of the City.
p) Violation of any of the prohibitions set forth in California Government Code % 1090 et seq. and § 1126. (Related to conflict- of-interest activities).
q) Refusal to take and subscribe any oath or affirmation that is required by law in connection with employment.
r) 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.
s) Willful injury to persons.
t) Waste of material.
u) Advocating violent overthrow of government. (Government Code Section 1028) "It shall be sufficient cause for the dismissal of any public employee when such public employee advocates or is knowingly a member of the Communist Party or of an organization which during 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."
v) Any unauthorized use of City uniforms.
w) Any violation of City or departmental policies and rules. x) Violation of City's Discination/Harassment Policy. (2) Misappropriated any assets of the City; or
(3) Failed to accurately state his/her representations or warranties.

The City Manager or his/her designee shall serve on an Employee terminated with cause a written document describing the reason(s) for the employee's termination and the date that the employee will be terminated. The Employee may meet with the City Manager to discuss the basis upon wMch he/she shall be terminated; however, the City Manager's decision is final andnot subjectto appeal and/or grievance. An Employee terminated with cause is not entitled to the six-month severance pay as described above for an Employee laid off or terminated without cause.
7 13
79 SECTION 7 DRESS CODE
The parties agree that City dress codes shall be determined by the City Manager in accordance with business necessity.

SECTION 8 IMDEMNIFICATION
To the extendmandated by state and/or federal law, including butnotlirnitedto California Government Code §§ 825-825.6, 995-996.6, and other applicable laws, the City shall defend, hold harmless, and indemnify Employee against any tort, professional liability, claim or demand, or other legal action arising out of an alleged act or omission occurring in theperformance of Employee's services under this Agreement, whether groundless or otherwise, alleged as a public official or private individual, arising out of an alleged act or omission occurring in the performance of the Employee's duties as defined in this Agreement. City will compromise and settle any such claim or suit and pay the amount of any settlement or judgment rendered thereon for Employee's activities perfortned in the course and cop of his/her employn'ient.

SECTION 9 BONDING
The City shall bear the full costs of any fidelity or other bonds required of the Employee under any law or ordinance.

SECTION 10 PERSONNEL RULES AND REGULATIONS
The Employee is subject to the provisions of any personnel rules, regulations, and other policies and procedures governing the ternns and conditions of employment whether now in existence or subsequently adopted by the City. Except as to the discipline, disciplinary appeals, notice and termination provisions thereof, such rules, regulations, policies or procedures are incorporated into this Agreement by reference and shall govern unless there is a conflict with this Agreement.

SECTION 11 PROBATION PERIOD
All Employees are "at will," do not have a probation period, and subject to termination pursuant to the terms outlined in this Agreement.

SECTION 12 WORKWEEK AND HOURS
Employees are expected to engage in the hours of work that are necessary to fulfill the obligations of the position, must be available at all times, and must devote a great deal of time outside the normal office hours to the business ofthe City. The proper performance of duties will require Employees to generally observe normal business hours (currently 7:00 a.m. to 6:00 p.m., Monday tmough Thursday, including a standard one-hour lunch period), as set by the City and as may be dulyrevised from time-to-time by the City, and will also offen require the performance of necessary services outside of normal business hours. Employees who are not able to generally adhere to the City's normal business hours shall discuss the reasons with the City Manager. 8 14
80 It is recognized that an Employee's duties may vary day-to-day, week-to-week as a result of the work demands placed on the Employee and the times such work is required to be performed. Employees may be required to work outside of normal office hours to attend to the business of the City and, upon approval of the City Manager, may be permitted to take compensatory time off as deemed appropriate.

SECTION 13 ELECTRONIC CHECK DEPOSIT
The City will continue to provide an electronic check deposit program.

SECTION 14 SUBSTANCE ABUSE
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, as implemented by the City's Drug and Alcohol Abuse Policy.

SECTION 15 SMOKE FREE POLICY
All City buildings and vehicles shall be considered "smoke free" areas. Employees may smoke on City property orily in areas specifically designated for smoking.

ARTICLE 16 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 the 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 tbis Agreement. Any disciplinary document shall have the following sentence before the signature line: "My signature does not mean that I agree with the contents of this document and does not waive any of my rights."
ARTICLE 17 EXCLUSION FROM CIVIL SERVICE RULES AND REGULATIONS 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 15
81 ARTICLE n

SALARIES AND ALLOWANCES

SECTION I 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 peiiod, subject to the Personnel Officer's approval and/or adjustment (due to special circumstances).

SECTION2 WAGES:

A. MiscellaneousEmployees:EffectivethefirstfullpayrollperiodofJuly2024,thebase salaty for all Miscellaneous Employees subject to this Agreement shall be increased three percent (3%). However, in the event PMMA or MEA negotiate a wage increase for Fiscal Year 24/25 greater than three percent (3%), Miscellaneous Employees subject to this Agreement shall receive the highest of the negotiated base salary increase effective on the same date that such increase is effective for PA4MA and/or MEA. In no event shall a Miscellaneous Employee's pay increase for Fiscal Year 24/25belessthanthreepercent(3%).Example: OnthefirstfullpayrollperiodofJuly 2024, Miscellaneous Employees will receive a 3% base salary increase. If PMMA and/or MEA negotiate a higher increase effective on August 11, 2024, the Miscellaneous Employees' pay shall increase from 3% to the higher negotiated rate on August 11, 2024.

B. Sworn Employees: Effective the first full payroll period of July 2024, the base salary for all Swon Employees subject to tbis Agreement shall be increased four percent (4%). However, the pay increase of Sworn Employees shall be greater than or equal to any base salary increase offered to Miscellaneous Employees. In the event the Miscellaneous Employees receive a base salary increase greater than four percent (4%), all Sworn Employees shall receive the same base salary increase effective on the same date that such increase is effective for Miscellaneous Employees.

SECTION 3 MERIT BASED INCREASES
All employees will be placed onthe same evaluation schedule with either annual or semi- annual evaluations. Advancement to a higher Step in each Grade will be contingent upon an overall satisfactory or exemplmy performance evaluation. Merit inueases must be recornrnended by the City Manager. Should the City Manager fail to complete an evaluationthroughno fault ofthe Employee, theEmployeewill automaticallyreceive any regularly scheduled increase. The City Manager may take affirmative action to withhold a salary step increase if it is determined at the sole discretion ofthe City Manager that the Employee has not met satisfactory standards. Withholding a salary increase is an administrative action, and not disciplinaty, and therefore is not a subject to appeal.

Additionally, it is the sole discretion of the City Manager as to when he/she may reconsider a merit increase and any merit increase provided following a withholding is not subject to retroactive pay.
10 16
82 SECTION 4 WITHHOLDn'!GS
A. Social Security: No contributions are paid by the City or Employees into Social Security.

B. Medicare: For all employees hired after April 1, 1986, a total withholditig of 2.9% shall be contributed to Medicare withthe City paying 1.45% ofthe Employee's salary and the Employee paying the remaining 1.45% of his/her salaiy.

SECTION 5 EDUCATIONAL REIMBURSEMENT
Up to $3,500 for any private or public college or university or recognized professional organization (American Planner Association, Government Finance Officers Association, etc.) annually for enrolling in classes related to their professional development with the City. Such reimbursement shall be pre-approved by the City Managerprior to enrollment by the employee. To be eligible for reimbursement, an employee must obtain a grade of "C" or better (a "Pass" if the class is a pass/fail standard) and shall submit a grade slip or other evidence of successful course completion and appropriate invoices and/or receipts.

For Employees hired on or after January 1, 1993, andwho were appointedto anExecutive Management position covered by this Agreement on or before January 1, 2015, the City shall pay for related regional and national professional memberships as approved by the City Manager including renewal ofprofessional licensees related to the position.

SECTION 6 VEHICLE ALLOWANCF,
A. Miscellaneous Employees: In lieu of the City providing a vehicle or paying mileage reimbursement for City business use, the employee shall receive $500 per month as a vehicle allowance. The employee shall annually 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 amiual DMV verification program. An employee receiving the Vehicle Allowance may not use a City vehicle for any purpose. Employees may use City Electronic Vehicle (EV) charging stations, if available.

B. Sworn Employees: Given the nature of the responsibilities attached to the position of ChiefofPolice, providing a City-issuedvehicle is more appropriate and cost effective as it would require a private vebicle to be outfitted with certain equipment so the Employee can carg out his/her duties as expected. Accordingly, a Sworn Employee will be provided with a vehicle that he/she may use for all work-related puyoses, including driving to and from work, trainings, and events.

SECTION 7 COMMUNICATION DEVICES
A. Miscellaneous Employees: In lieu of the City providing a cell phone, the Employee shallreceive$120permonthforcomrnunicationexpenses. Theemployeeunderstands the monthly records of calls may be subject to the California Public Records Act 11 17
83 relating to City business items. Tlie City Attorney's Office will make any determination of applicability.

B. Sworn Employees: The Sworn Employee has a choice to either receive the allowance as specified above in Section 7.A. or may receive a City-issued cell phone.

SECTION 8 EDUCATION INCENT:[VE PAY
The City shall pay $225 per month for any employee that has obtained a master's degree or higher from a fufly accredited university.

SECTION 9 UNIFORM ALLOWANCE (SWORN ONLY)
Sworn Employees may order uniforms from a City-approved vendor for an amount not to exceed $1,200 annually and that the purchase of such uniforms shall be billed directly to the City.
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84 ARTICLE In

FRINGE BENEFITS

SECTION I HEALTHCARE INSURANCE
The City provides health coverage through the CalPERS Health Program. Employees receive up to $1,000 + 1.OO% of his/her base annual salaty, monthly towards mandatory medical and dental coverage, wich includes therequired CalPERS monthly contribution.

In lieu of this benefit, Employees showing proof of enrollment in an alternative group health plan, and annually each year thereafter, may opt out of City health coverage with a cash-in-lieu payment of $900 per month minus any premiums for dental and vision coverage. An employee may designate all or some of the $900 per month cash-in-lieu payment to be deposited into the employee's deferred compensation account.

The City pays for the Employee and up to 2 dependents party HMO Visonplanpretnium.

SECTION 2 LIFE INSURANCE
The City shall provide $100,000 Life and Accidental Death and Dismemberment Insurance for all Employees subject to this Agreement.

SECTION 3 VOLUNTARY LIFE [NSURANCE
Eligible employees will be offered the opportunity to purchase life insurance in addition to the life insurancepaid for by the City. Currently voluntary life coverage is provided by The Guardian and establishes the terms and conditions regarding coverage; however, the City reserves theright to c'hange insurance carriers forthis benefit atits own, independent discretion.

SECTION 4 RETIRE,'MENT
A. CalPERS Pension
Employees will be provided with California Public Employees' Retirement System ("CalPERS") pension benefits consistent with the City's contract with CalPERS, with benefits diffeig depending on whether the employee is a "classic member" or "new member," as defined by the Public Employee's Pension Reform Act ("PEPRA"). The City will pay the Employer contribution of pension cost and the employee shall pay the Employee contribution of pension costs consistent with CalPERS requirements. The City's CalPERS contract provides for 1959 Survivor Benefit Level 4 and sick leave credit, such that sick leave is converted to service credit upon retirement from the City within four months of employment separation subject to current CalPERS regulations.

1. "Classic Members": For all employees who are "Classic Members" within the meaning of the California Public Employees' Pension Reform Act of 2013, the City shall provide in its contract with CalPERS the following retirement:
13 'ig
85 a. Miscellaneous Employees: These employees shall receive a retirement pension formula of 2.7% @ 55 calculated using their highest 12 months ofincome.
b. Sworn Employees: these employees shall receive a retirement pension formula of 3.0% @ 50 calculated using their highest 12 months of income.

2. "New Members": For all employees who are "PEPRA" within the meaning of the California Public Employees' Pension Reform Act of 2013, the City shall provide in its contract with CalPERS the following retirement:
a. Miscellaneous Employees: These employees shall receive a retirement pension foimula of 2.0% @ 62 calculated using their highest 36 months of income.
b. Sworn Employees: these employees shall receive a retirement pension formula of 2.7% @ 57 calculated using their highest 36 months of income.

B. Employee Contributions

1. Miscellaneous Employees: Miscellaneous Employees will pay the employee's 8% contribution to the retirement plan or as defined by PEPRA. Starting July 1, 2023, all A/Iiscellaneous Employees, "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 Januaty 1, 2025.

2. Sworn Employees: Sworn Employees will pay the employee's 9% contribution to the retirement plan or as defined by PEPRA. Starting July 1, 2023, all Sworn Employees, "Classic" and "PEPRA" as defined by CALPERS, shall pay ai 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 Januaty 1, 2025.

C. Retiree Medical Insurance

1. Miscellaneous Employees: The City shall continue to cover eligible retirees by the City's Public Employees' Medical & Hospital Care Act (PEMHCA) resolution. Employees are eligible forthis benefit ifthe employeehas twenty (20) or more years of service with the City, remains enrolled in a CalPERS medicaIl plan, retires from the City, and remains a CalPERS annuitant. Employees shatl 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 his/her own expense.
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86 2. SwornEmployees: TheCityshallcontinuetocovereligibleretireesbytheCity's Public Employees' Medical & Hospital Care Act (PE'MCHA) resolutiori.

Employees are eligible for this benefit if the employee has twenty (20) or more years of service with the City, remains enrolled in a CalPERS medical plan, retires from the City with a normal service retirement, and remains a CalPERS annuitant. In the event the Employee retires with an Industrial Disability Retirement (IDR) with CalPERS, or later converts his/her normal service retirement to an IDR, he/she will no longer be eligible for this benefit. Once eligibility is lost, it cannot be restored under any circumstance. A retiree will be reimbursed for the actual dollar amount for the CalPBRS medical insurgnce coverage he/she selects, fixed at arate not to exceed the amount of the CalPERS Kaiser-Southern California 2-Party medical insurance monthly premium rate in effect on Uhe date of his/her retirement.
3, TheCityagreestonotifyemployeesoftheneedto enrollorremaininaCalPERS medical benefit plan to receive tbis benefit at the time the employee submits the "Intent to Retire" packet.

SECTION 5 DEFERRED COMPENSATION
The City currently offers deferred compensation plans to employees, enrollment in such plans is voluntary, and on an ongoing basis.

A. ForemployeeshiredonorbeforeDecember31, 1989:TheCityshallmatchEmployee contributions up to $100 per month.

B. For employees hired on or after January 1, 1990: The City shall match Employee contributions up to $550 per month.

SECTION 6 FITNESS
A. All Employees shall receive a family membership (spouse and dependent children) at the South Gate Sports Center in the South Gate Park that will be provided at no cost and includes access to the golf course and swimming pool. This membership includes free access to allPark facilities that are opento thepublic, but excludes City sponsored classes that require a fee.

B. All Employees are also eligible to participate in the City's Employee Assistance Plan ("RAP") Program.

C. Physical Fitness Program: All Sworn Employees shall receive special compensation of $600 each April and October for passing the Police Department's Physical Fitness Test ("PFT") in any one of the following areas: (1) cycling, (2) three-mile walk, or (3) one and one-halfmile run. The Police Department conducts fitness testingtwo (2) times a year. Scores are based upon the Sworn Employee's gender, age, and PFT perfomiance. Those who successfully complete their assigned segment of the "Baker to Vegas Run" are deemed to have passed the test in lieu of taking the fitness test in April of that particular year. A score of "good" or better shall be deemed a passing 15 21
87 score to entitle the recipientto receive the $600 payments describedherein. Employee participation in this Physical Fitness Progrmn is voluntary.

SECTION 7 LONG TERM DISABILITY
A. For Employees hired on or before December 31, 1992, or who were appointed to an Executive Management position covered by this Agreement on or before December 31, 2014: The City pays for Long Teim Disability Insurance through Reliance Standard (or whichever other company the City may contract for similar services) for long term disability coverage.

B. For Employees hired on or after January 1, 1993, and who were appointed to an Executive Management position covered by this Agreement on or after January 1, 2015: The City pays 50% of the pIan cost, should the employee clioose to participate in CalPERS (or successor) offered program.
16 22
88 SECTION I HOLIDAY LEAVE
A. Entitlement

ARTICLE IV

LEAVE POLICIES
Employees who are on the payroll as of July 1st of eachFiscal Year, 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 hire with ten (10) hours of holiday leave for each designated holiday remaining in the Fiscal Year. Entitled employees may be absent from 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 City Manager 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
Cbristmas Day
New Year's Day January Ist
Third Monday of Januaty
Tbird Monday of Februm7
Last Monday in March
Last Monday of May
July 4'
First Monday of September
Fourth Thursday ofNovember
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 t (30) additional hours will be applied to effectuate a full week of closure between Christmas and New Year's Day. In the event that less than thirty (30) hours is necessary to effectuate the full 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 withregard to holidays - holidays that fall onFriday or Saturdaybecome floaters. Holidays that fall on Sunday are observed on Monday. Iftwo-day holidays fall on Sunday/Monday, then holidays are observed Monday/Tuesday. Atthe beginning ofeachFiscalYear, employeeswill be credited with the total hours of Holiday Leave for that fiscal year, and all Holiday 17 23
89 Leave must be used during the Fiscal Year. Holiday Leave used shall be deducted from the hours credited in increments 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 nornnal daily rate of pay for hours worked. The employee will have the option to: (1) 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 his/her 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 ofpay and retuted to zero so that, on July Ist of the new bank of one hundred tbirty (130) hours is all that is carried forward.

Any possible raise that was or is negotiated or implemented as part of any successor Agreement shall not apply to the cash-our amount or pay rate used for the cash-out atnount. City Holiday Leave is not intended to be catned over from one fiscal year to a succeeding fiscal year. Any unused Holiday Leave hours will automatically be cashed out at the end ofthe fiscal year at the employee's base payrate. This cash out provision shall be applicable beginning June 1, 2024.

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

1. EmployeeshiredonorbeforeDecember31,2014:Employeeshiredonor before December 31, 2014, shall eann vacation at a rate of 160 hours per year, or 6.15 hours per pay period. Accrued but unused vacation may be carried over from year to year with no cap on the number ofhours an Employee may accrue.

2. EmployeesiredonorafterJanuaryl,2015:

One (1) to four (4) years of service:

Fi've (5) to nine (9) years of service:

Ten (10) or more years of service:
120 hours annually
160 hours annually
200 hours annually
Accrued but unused vacation may be carried over from year to year; however, the maximum allowable vacation accmal is three hundred and fifty (350) hours for Miscellaneous Employees and four hundred (400) hours for Sworn Employees. If an employee's vacation accrual is at the maximum level, the employee will not accnie additional vacation until the employee's vacation acmal is below the maximum level.

B. BynolaterthanDecemberl5ofanycalendaryear,,anemployeewishingtoconvert a portion of his/her actual accumulated vacation leave to cash at the hourly rate of base 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 witbin the employee's account balance 18 24
90 after any distribution has been made. Said employee shall be entitled to request a cash distribution as follows:

1. Miscellaneous Employees:
a. Employees hired on or before December 31, 1989: Up to eighty (80) hours and shall be paid the first payroll period in the following May, b. Employees hired on or after January 1, 1990: Up to forty (40) hours and shall be paid the first payroll period in the following May.

2. Sworn Employees: Up to one hundred (100) hours and shall be paid the first payroll period in the following May.

C. Upon separation of employment, Employees shaIl be entitled to a cashout of all unused vacation, which shall be paid at the employee's FLSA hourly rate of pay on the date ofhis/her separation.

SECTION 3 SICKLEAVE
A. Entitlement
Employees shall earn one hundred twenty (120) hours of sick leave peryearprorated bypayperiod (4.62 hours/payperiod). Accrued butunused sick leave may be carried over from yearto year withno cap on the number of hours an Employee may accrue.

The use of sick leave is to provide the Employee paid time off when he/she is sick or injured; however, the Employee may also use sick leave to attend dental or medical appointments for im-/herself and/or his/her dependents, for purposes permitted under the FMLA/CFRA/PDL, and for any other purpose authorized under the terms of this Agreement.

B. Sick Leave Program

1. Illness or Injury Leave Notification and Verification Procedure: In the event of an absence due to illness orinjury, employees mustnotify the City Managerprior to or at the beginning of their shift starting time. Employees who are incapacitated must notify the City Manager at the earliest possible time and may have a spouse or other person contact the City Manager within the time limit specified above.

2. Employees who become ill or injured while working on the job must request approval from the City Manager to leave work. Those employees injured on the job must file a "FirstReportofInjury" form andreceive authorization formedical treatment from the City Manager.

The notification to the City Manager must include a reason for the absence that is in accordance with current law and an estimated return date. Tbis information 19 25
91 will be Jogged for future reference.

3. Failure to notify the City Manager will result in the forfeiture of the sick leave for the period of absence and may result in disciplinary action.

4. All absences not due to illness or ui3ury must be requested as noted in the appropriate leave sections.

5. Verification - In the event that employees have, in the City Manager's sole opinion, an absenteeism problem, an excessive use of sick leave, or have a suspicious absence of three days or longer or group of absences, the City Manager may attempt to verif5r 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 peimission to return to work.

6. Where an excessive absenteeism pattern has been established without clear justification for said leave, the City Manager 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 surnrnary of the abuse problems and discussion. The Personnel Officer shall issue the summary and a copy distributed 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 warrm'its discipline, or ifthe above counseling session does not correct abuses, then action will be taken to correct the abuse problem through the discipline process.

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

D. Sick Leave Payoff

1. Sick leave accrual shall remain unlimited. An Employee hired on or before December 31, 1992, shall be cashed out at the hourly rate, as defined below, of pay of the Employee then existing on the date of his/her retirement from employment. For employees hired on or after Januaty 1, 1993, and on or before December 31, 2002, the sick leave "payoff' shall be limited to 600 20 26
92 hours at the hourly rate, as defined below, of pay of the Employee then existing on the date of his/her retirement from employment. For employees hired on or after January 1, 2003, and on or before December 31, 2021, the sick leave "payoff" shall be limited to 450 hours at the hourlyrate, as defined below, ofpay 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 for all Employees upon retirement to CalPERS sewice credit as then allowed by the City's CalPERS contract. Employees whose separation is for anyreason other than retirement, termination without cause, or layoff 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.

The calculation of the hourly rate a retired employee shall receive under this payoff provision shall be as follows:
15 19yearsofservice-50%ofFLSAhourlyrate.
20 - 24 years of service - 75% of FLSA hourly rate. 25 years or more of service - 100% of FLSA hourly rate.

For an employee wiUh 25 or more years of service to the City, he/she may enter in a three-year payout agreement, wherein the employee shall be paid 33% ofhis/her total accmed sick leave inthe last payperiod of the fiscal year in which the agreement was entered. One year following the first payment of the agreement, in the last pay period of the following fiscal year, the Employee shall be paid 50% of his/her remaining total accrued sick leave balance. Two years following the firstpaymentofthe agreement and oneyear following the second payment of the agreement, in the last pay period of the following fiscal year or on the date of the employee's retirement, whichever comes first, the employee's remaining balance of total accrued sick leave shall be paid. The payout amount shall be determined as the employee's hourly base rate at the time the payment is made.

For example, if an employee were to enter into an agreement under the terms of this provision in May 2024 with 300 hours of sick leave, the first payment of 100 hours will be paid at in the last pay period in June of fiscal year 23/24.

Duig thelast payperiod ofJune 2025, half ofthe remaiing 200 hours shall be paid out. If the employee were to then relLrc on November 30, 2025, the remaining 100 hours shall be paid out.

Upon enteig into the agreement, the employee may request that all or a portion of the payment be to is/her deferred compensation account up to the amount permitted by IRS regulations.
21 27
93 An employee who remains employed with the City beyond the date initially anticipated in the Agreement, shall have hisAier total accrued sick leave cashed out in the last pay period of each fiscal year with the exception of 80 hours, which shall remain as available sickleaveuntil suchtimethe employee retires.

Employees interested in this airangement shall contact the Human Resources Department to prepare an agreement, which shall be signed by the employee and the City Manager. This payoff agreement may be executed at any time during the 2023/24 Fiscal Year,
SECTION 4 JURY DUTY
Employees who are called for Jury Duty shall be entitled to full salary while serving on a jury. Employees are obligated to provide the City with proof of service each pay period.

Failure to provide proof of jury service will result in the Employee usirig his/her own accrued leave in the following order until extinguished: vacation leave, administrative leave, and personal/emergency leave.

SECTION 5 LEAVE 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 City Manager. In the case of a bona fide illness or injury, amedical leave may be granted up to amaximum of one (1) year upon the approval of the City Manager. In the event that an employee has no eligible leave to cover an absence from work, authorized orunauthorized, the CityManager 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 City Manager on a Personnel Transaction Form. The City shall have sole discretion whether 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 quafified Doctor ofMedicine to have a catastrophic illness (in a state of total disability from cancer, heart attack, AIDS, etc.) or has a catastrophicinjury(aninjurythattotallydisables anemployeeforanextendedperiod oftime), the employee may be entitled to extended health benefit coverage (Medical, Dental, & Life ins.) provided by the City (in the same fashion normally provided to the employee). This benefit requires the approval of the City Manager, and is applicable when the employee's leave benefits are exhausted, under the following formula:
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94 SECTION 6
Years of Full-Time City Employment
After (2) years
After 4) years
After (7) years
After (10) years

MATF,RNITY 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 /CAIJFORNIA FAMILY RIGHTS ACT Pursuant to State & Federal law, the City will provide family and medical care leave to eligibleemployees. Thefollowingprovisionssetforthemployees'rightsandobligations with respect to sick leave. Rights and obligations that are not specifically set forth below 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 Employn'ient and Housing Commission implementing the California Family Rights Act (CFRA). Unless 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 entitled to a total of 480 hours of leave dumg 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 dete.tmine how much leave has been used in determining how much leave a member is entitled to.

B. Use of Accrued Leaves While on Leave - If a member requests leave for any reasons permitted under the law, that person must exhaust all accnied leaves in connection withtheleave. Theexhaustionofacctuedleavewillrunconcurrentlywiththeleave.

SECTION 8 BEREAVEMENT
The term "immediate family" is defined as the spouse, children, brother, sister, parent, parent-in-law, grandparent, or grandcild of the employee. The Employee is entitled to 40 hours of bereavement leave for immediate family members and up to 8 additional hours of bereavement leave if the interment service is over 300 miles away. 23 29
95 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' Compensation laws shall receive from the City the difference between such disabilitypayments and his/her full salary for theperiod of absence up to a maxiinurn 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.

SECTION 10 MILIT ARY 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 California atid 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 militaiy duty to be filed with the City's Personnel Officer. Militaty Leave is recorded on the employee's time sheet and approved by the City Manager. 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) ofpaidmilitary leave ifthey are called to active duty (other than annual training) in the National Guard or one of the branches of the U,S.

Military.

SECTION 11 ADMINISTRATIVE LEAVE
A. Employees will be provided Administrative Leave as follows:

1. Employees hired on or before December 31, 1989, or appointed to an Executive Management position on or before December 31, 2014: Employees hired on or before December 31, 1989, or appointed to an Executive Management position on or before December 31, 2014, shall receive one- hundred and twenty (120) hours peryear ofAdministrative Leave, which shall be accrued at a rate of 4.62 hours/pay period. Employees may carry over unused Administrative Leave to the following fiscal year(s) without any cap on the maximum amount an Employee may accrue.

2. Employees hired on or after January 1, 1990, and before December 31, 1992, and appointed to an Executive Management position on or after January 1, 2015: Employees hired on or after January 1, 1990, and before December 31, 1992, and appointed to an Executive Managementposition on or after January 1, 2015, shall receive one-hundred (100) hours per year of Administrative Leave, which shall be accrued at a rate of 3.85 hours/pay period. Employees may carry over unused Administrative Leave to the following fiscal year(s) without any cap on the maximum amount an Employee may accrue. 24 30
96 3. Employees hired on or after January 1, 1993, and appointed to an Executive Managementposition on or after January 1, 2015: Employees hired on or after January 1, 1993, and appointed to an Executive Management position on or after January 1, 2015, shall receive one hundred (100) hours per year of Administrative Leave, which shall be accrued at a rate of 3.85 hours/pay period. Employees may carry over unused Administrative Leave to the following fiscal year, but at no time shall an employee maintain a balance of Administrative Leave greater than two hundred (200) hours. No administrative leave shall accrue beyond the established two hundred (200) limit 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 accumulated leave to cash out 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. Said employee shall be entitled to request a cash distribution and shall be paid the first payroll period the following May based on the following criteria:

1. For employees hired on or before December 31, 1992, or appointed to an Executive Management position on or before December 31, 2014: The employee shall be able to request a cash distribution ofup to eighty (80) hours of accrued leave at the hourly rate of base pay then existing.

2. For employees hired on or after Januag 1, 1993, and on or before December 31, 2023, and appointed to an Executive Management position on or after January 1, 20I5: The employee shall be able to request a cash distribution of up to forty (40) hours of accrued leave at the hourly rate of base pay then existing.

C. Upon separation from the City, an employee is eligible for a cash out of all Administrative Leave at the Employee's hourly rate of pay existing on the date of his/her separation.

D. Pre-Retirement Cash-Out
For an employee hired on or before December 31, 2014 and who is within three or less years of his/her normal CalPERS retirement age (e.g., 50, 55, 57, or 62), he/she may enter into an irrevocable three-year payout agreement, wherein the employee shall be paid 33% of his/her total accrued administrative leave in the last pay period of the fiscal year in which the agreement was entered. One year following the first payment of the agreement, in the last pay period of the following fiscal year, the Employee shall be paid 50% of his/her remaining total accnied sick leave balance.

Two years following the first payment of the agreement and one year following the second payn'ient of the agreement, in the last pay period of the following fiscal year or on the date of the employee's retirement, whichever comes first, the employee's remaining balance oftotal accrued sick leave shall be paid. The payout amount shall be detemined as the employee's hourly base rate at the time the payment is made.

Once this agreement is entered and the Employee separates for any reason other than 25 31
97 for termination with cause, he/she shall be paid the remaining balance of his/her accnied administrative leave at liis/her FLSA hourlyrate of pay then existing on the date of his/her separation from the City.

For example, if an employee were to enter into an agreement iu'ider the terms of this provision in May 2024 with 900 hours of administrative leave, the first payment of 300 hours will be paid at in the last pay period in June of fiscal year 23/24. During the last pay period of June 2025, half of the remaining 600 hours shall be paid out. If the employee were to then retire on November 30, 2025, the remaining 300 hours shall be paid out.

Upon entering into the agreement, the employee may request that all or a portion of the payment be to his/her deferred compensation account up to the amountpermitted by IRS regulations.

An employee who remains employed with the City beyond the date initially anticipated in the agreement, shall have his/her total accrued administrative leave cashed out in the last pay period of each fiscal year.

Employees interested in this arrangement shall contact the Human Resources Department to prepare an agreement, which shall be signed by the employee and the City Manager. This payoff agreement may be executed at any time during the 2023/24 Fiscal Year.

SECTION 12 PERSONAL BUSINESS LEAVE
An Employee may useup to 50 hours in any calendar year as "Personal Business Leave," which shall be taken out of the Employee's accnued sick leave bank for any reason. 26 32
98 ARTICLE V

IMPLEMENTATION OF AGREEMENT
SECTION 1 MODIFICATIONS
Any modification to tbis Agreement must be in writing and approved by the City Council in order for it to be effective.

SECTION 2 EFFECT OF WAIVER
The failure of any party to this Agreement to insist on strict compliance with any of the terms, covenants or conditions shall not be deemed a waiver of that term, covenant or condition. Nor shall any waiver or relinquisbtnent of any right or power at one time or times be deemed a waiver or relinquisbment of that right or power for all or any other times.

SECTION 3 ENTIRE AGREEMENT
Each party agrees and acknowledges that no representations, inducements, promises, agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied hereiti, and that no other agreements, statements or promises not contained or referenced in this Agreement shall be valid or binding on either PaItY.
27 33
99 CITY OF SOUTH GATE EXECUTIVE MANAGEMENT
Arttjro
Asst. City Manager/Director
of Public Works
guira
of Cornrnunity
Deve opment
Darren Arakawa
Chief of Police
Wendy O'Kelly
Director of Administrative
Services
Jon
f Human
Steve Costley (;"
Director of Parks
Recreation
AND

CITY OF SOUTH GATE
Robert Houston
City Manager on behalf of
the City of South Gate
Gil Hurtado
Mayor, City of South Gate
ATTEST: APPROVED AS TO FORM:

Yodit Glaze, City Clerk Raul Salinas, City Attorney DATED THIS DAY OF , 2024.
28 34
100
"'h'lLL kl
iaiiiiil'iG;'IiaCl'Cj51i(
Item No. 6
.j'lN"1; :)1U74
FILED City of South Gate

CITY COUNCIL

AGENDA BULL
For the Regular Meeting of: June 11, 2024
Originating Department: Human Resources
Human Resources Director: City Mariager:
n amilton fia HoWon
SUBJECT: RESOLUTION TO REPEAL RESOLUTION N0. 6454 (SALARY

RESOLUTION AND POSITION CLASSIFICATION PLAN) AND TO APPROVE

CERT AIN TERMS AND CONDITIONS OF EMPLOYMENT
PURPOSE: TorepealResolutionNo.6454(SalaryResolutionandPositionClassificationPlan) and to approve certain terms and conditions of employment.

RECOMMENDED ACTION: The City Council will consider:

1. Adopting a Resolution to Repeal Resolution No. 6454 (Salary Resolution and Position Classification Plan); and

2. Approving certain terms and conditions of employment.

FISCAL IMPACT: There is no fiscal impact.

BACKGROUND: On September 22, 1998, the City Council passed, approved, and adopted Resolution No. 6454, which provided the following actions:

A. It adopted 42 previous resolutions, which restated, consolidated, and amended "Salary Resolutions" relating to pay and benefits for all City employees and repealed three prior resolutions in their entirety; however, to incorporate all amendments and modifications resulting from these prior 42 resolutions, incorporated by reference to Resolution No. 6454 is Attachment "A", which provides a restatement, consolidation, and amendments to clarify those current rights and benefits;
B. City Council approved the Memoranda of Understanding for the South Gate Police Management Association (PMA) and the South Gate Police Officers' Association (POA) for the period of July 1, 1997, through June 30, 2000; C. City Council approved the Memoranda of Understanding for the South Gate Division Management Association (DMA), the South Gate Municipal Employees' Association (MEA), the South Gate Clerical Employees' Association (absorbed into MEA), and the South Gate Professional Mid-Management Association (PMMA) for the period of July 1, 1997, through June 30, 2001; and
1 101
D. City Council approved the salary and benefits for unrepresented employees for the period of July 1, 1997, through June 30, 2001.

Attachi'nent "A" to Resolution No. 6454, which is titled, "Salary Resolution," provides for Pay Plan. The Pay Plan provides the pay, benefits, and other matters that would be applicable to each of the classifications working for the City. For example, Category B is defined as those persons working in Police Management, whereas Category C are those persons working in the capacity of police officers. Today, each one of the classifications working for the City is placed into an association, such as DMA, PMA, POA, PMMA, and MEA, or, if unrepresented, have an agreement outlining their pay and benefits, such as the Executive Management Group, or an Employee Handbook, such as for part-time employees.

Attachment "A" to Resolution No. 6454 also provides for other pay, benefits, and conditions of employment that are now contained in each of the employees' respective MOUs, Agreement, or Handbook, or contained in the City's comprehensive Civil Service Regulations. For example, Section 4 of Attachiuent "A" (Assignment of Pay Rates and Increases) is now all contained in each respective MOU, employment Agreement, or Handbook. The same is true with Section 5 (Wage Supplements) Section 6 (Hours of Work and Premium Pay), Section 7 (Leaves), Section 8 (Insurance), and Section 9 (Administrative and Procedural Matters Relating to Payroll and Compensation).

Upon a thorough analysis of Attachment "A" to Resolution No. 6454, there are a few items that are not contained in any other document that touch and concern the terms and conditions of employees working for this City. These are items that are not currently contained in any MOU, Agreement, Handbook, the City's comprehensive Civil Service Regulations, or in any policy and are outlined in Attachment "A" to this Resolution. Therefore, in order to ensure that employees lose no benefits as a result of the repeal of Resolution No. 6454, staff is requesting that City Council approve Attachment "A," Terms and Conditions of Employment (Per Resolution of June 11,2024), which simply restates all terins and conditions of employment that are not contained in any other City source document.

As for the specific Pay Plan outlining the positions in the City, the City Council annually approves a new Pay Plan (Classification Plan) in each of its Fiscal Year Adopted Budgets, which includes all of the positions authorized for that fiscal year. Each of those positions are members of one of the City's various employee associations or, if unrepresented, have an agreement or handbook outlining the rights, privileges, and benefits of each position. The City also has a consolidated salary schedule, which provides all authorized positions and is brought to the City Council on an annual or semi-annual basis for approval and transparency. That consolidated salary schedule is posted on the City's website and, each time the City Council directs staff to update it, the updated version is posted online as well.

Beginning in July 2022, the City Council began approving consolidated MOUs for each of the City's bargaining units, which clearly outlines each employee's benefits, working conditions, and other issues related to their employment: PMA consolidated MOU was approved on July 26, 2022 (Resolution No. 2022-45-CC); MEA and PMMA consolidated MOU was approved on March 28, 2023 (Resolution No. 2023-1 7-CC); POA consolidated MOU was approved on March 12, 2024 2 102
(Resolution No. 2024-18-CC); and DMA consolidated MOU was approved on May 14, 2024 (Resolution No. 2024-36-CC). Tlie consolidated Executive Management Agreement is brought before the City Council on June 11, 2024, for approval.

While Resolution No. 6454 provides for City Council and other elected officials benefits, those benefits have been updated since September 22, 1998. On September 28, 2017, the City Council approved Resolution No. 7751, which amended the pay and benefits of City Council Members.

On December 13, 2022, the City Council passed and approved Ordinance No. 2022-11-CC, whicli updated City Council compensation and adopted the benefits schedule for all elected officials of the City of South Gate, including the City Treasurer and City Clerk.

Further, the City Municipal Code provides direction to the City Manager to administer persoru'iel actions for efficient governance. Pursuant to the City of South Gate Municipal Code ("Code"), Chapter 1.06 (City Manager), § 1.06.060 (Powers and duties), in relevant part it states: "The City Manager shall have primary administrative responsibility for the city governrnent under the direction and control of the city council, except as otherwise provided in this code. The city manager shall be responsible for the efficient administration of all affairs of the city which are under the control of the city manager..." Some of those specific duties are outlined in some of the subsections of Section 1.06.060, such as:
* Subsection B: "To control, order and give directions to all department managers, subordinate officers and employees of the city, except the city clerk, the city treasurer and the city attorney; to transfer employees from one department to another; and to consolidate or combine offices, positions, departments or units under the city manager's direction; provided, however, that nothing herein contained shall be construed to supersede the authority of the civil service coi'nunission of the city in the matter of classification of city officers or employees."
* Subsection C: "To appoint, promote, discipline, demote and remove any offices or employees of the city, except the city clerk, the city treasurer and the city attorney, subject to the civil service system of the city, if any." * Subsection D: "To exercise control over all departments of the city government and over all appointed officers and employees thereof, except the city clerk, the city treasurer and the city attorney."
Finally, the California Public Employment Retirement System (CalPERS) provides additional requirements for the transparency of governrnent and the approved classification/pay plan.

Pursuant to CalPERS' interpretation of the California Code of Regulations Efi 570.5 of the Public Employees' Retirement Law (PERL), as outlined in its January 8, 2020, Circular Letter, it recommends that all CalPERS employers maintain their classification compensation levels in one publicly available document, approved and adopted by the governing body, which must meet all of the following criteria:
l) Hasbeendulyapprovedandadoptedbytheemployer'sgoverningbodyinaccordancewith the requirements of applicable public meetings laws; 3 103
2) Identifies the position title for every employee position; 3) Shows the pay rate for each identified position, which may be stated as a single amount or as multiple amounts within a range;
4) Indicates the time base, including, but not limited to, whether the time base is hourly, daily, bi-weekly, monthly, bi-monthly, or annually;
5) Is posted at the office of the employer or iinmediately accessible and available for public review from the employer during normal business hours or posed on the employer's internet website;
6) Indicates an effective date and date of any revisions; 7) Is retained by the employer and available for public inspection for not less than five years; and
8) Does not reference another document in lieu of disclosing the pay rate.

On September 23, 2023, the City Council approved and adopted a comprehensive pay schedule for all full-time, part-time, and elected officials within CalPERS guidelines. (ResolutionNo. 2023- 62-CC) Once all negotiated pay increases have gone into effect, the most recent iteration of the comprehensive pay schedule will be brought before City Council for approval pursuant to the PERL.

Under the PERL and the Public Employees' Pension Reform Act of 2013 (PEPRA), compensation earnable and pensionable compensation are determined in accordance with the amounts identified on a publicly available pay schedule as adopted and approved by the City Council. If an employer were to fail to meet with requirements of Section 570.5 as stated above, the CalPERS Board may determine at its sole discretion an amount that will be considered as a pay rate in determining what a retiree's earnable income will be, which will never be higher than the amount stated on the comprehensive salary schedule. As a result, publicly available pay schedules are required by CalPERS and are a critical component to verify all members' pay rates when calculating members' retirement benefits. Finally, maintaining a compliant publicly available pay schedule will support transparency and expedite CalPERS' review process. Failure to provide CalPERS with a compliant publicly available pay schedule may result in a retirement benefit being delayed and/or reduced.

ANALYSIS: Although Resolution No. 6454 provides for a Pay Plan outlining the positions authorized for City employment, there has been the practice over the years to bring every change to a position's job classification specification before City Council for approval. However, Resolution No. 6454 does not require such action. For example, the City was prepared to initiate the recruitment for the position of Housing Assistant in the Community Development Department on April 29, 2024; however, the job classification specification needed to be updated to ensure that the minimum qualifications were equal to or less than the position superior to it. While the Department of Human Resources and the impacted union, MEA, were able to agree to the changes quickly, due to the procedural requirements to have this slight change approved by City Council pursuant to a non-stated requirement of Resolution No. 6454, it was not able to get approved until the May 28, 2024, Regular City Council Meeting. This process effectively caused a one-month delay in initiating the recruitment process for a crucial and needed position in the Community Development Department.
4 104
When certain persoi'inel actions will impact tlie City's approved Adopted Fiscal Year Budget Pay Plan, any such action will be brought to City Council for approval (e.g., position retitling, reclassification of a position, creation of a position not approved in the Adopted Fiscal Year Budget, adjustment of pay, etc.). However, for those actions already approved by City Council when adopting the current fiscal year budget and, therefore, that do not need to be brought to City Council for a second approval, and/or are within the responsibilities provided to the City Manager/Personnel Officer for the efficient administration ofpersonnel (e.g., changing description of duties, updating minimum and desired qualifications, approving new job classification specifications for positions approved in the Fiscal Year Budget, etc.), any changes will be made administratively under the direction of the Personnel Officer. To ensure that all changes to job classification specifications assigned to an employee association appropriately went through the propermeet and conferprocess, no suchupdate shall be deemed completed until both the Personnel Officer and a duly authorized representative of the affected employee association has each signed and dated the document.

The rationale behind repealing Resolution No. 6454 is that it is obsolete, inefficient, and no longer necessary for the proper and effective administration of personnel within the City. Accordingly, staff requests that the City Council approve a resolution repealing Resolution No. 6454. Staff also requests that the City Council approve the Terms and Conditions outlined in Attachment "A" to ensure that they are continued until such time that each provision is properly placed in an appropriate MOU, Agreement, Regulation, or policy. Further, once negotiated pay increases have been implemented for Fiscal Year 2024/2025, staff will bring to the City Council for approval an updated comprehensive salary schedule as required by the PERL.

ATTACHMENT: Proposed Resolution (with Attachment "A") 5 105
RESOLUTION NO.

CITY OF SOUTH GATE

LOS ANGELES COUNTY, CALIFORNIA

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTH GATE, CALIFORIA, REPEALING RESOLUTION N0. 6454 (SALARY

RESOLUTION AND POSITION CLASSIFICATION PLAN) AND TO

APPROVE CERT AIN TERMS AND CONDITIONS OF EMPLOYMENT WHEREAS, on September 22, 1998, the City Council passed, approved, and adopted Resolution No. 6454 (Resolution No. 6454), which approved the Memoranda of Understanding (MOU) for the South Gate Police Management Association (PMA) and the South Gate Police Officers' Association (POA) for the period of July 1, 1997, through June 30, 2000; WHEREAS, Resolution No. 6454 approved the MOUs for the South Gate Division Management Association (DMA), the South Gate Municipal Employees' Association (MEA), the South Gate Clerical Employees' Association (absorbed into MEA), and the South Gate Professional Mid-Management Association (PMMA) for the period of July 1, 1997, through June 30, 2001;
WHEREAS, Resolution No. 6454 approved the salary and benefits for unrepresented employees for the period of July 1, 1997, through June 30, 2001 ; WHEREAS, Attachinent "A" to Resolution No. 6454, which is titled "Salary Resolution," (Salary Resolution) provides for a Pay Plan, which outlines the pay, benefits, and other conditions of employment applicable to each classification working for the City; WHEREAS, since the approval of the Salary Resolution, each one of the classifications working for the City has been placed into an association, such as DMA, PMA, POA, PMMA and MEA, or, if unrepresented, have an agreement outlining their pay and benefits, such as the Executive Management Group, or an Employee Handbook, such as for part-time employees; WHEREAS, the majority of the terms and conditions of employment contained in the Salary Resolution are now contained in each employees' respective MOUs, Agreement, Handbook, City Regulation, or policy, with the exception of a few items identified in Attachment "A" - Terms and Conditions of Employment (Terms and Conditions of Employment) to this Resolution;
WHEREAS, because the Salary Resolution is now obsolete in relation to the terms and conditions of employment, with the exception of those outlined in Attachment "A" - Terms and Conditions of Employment, those matters outlined therein are intended to continue until such time that each items has been transferred to the appropriate MOU, Agreement, City Regulation, or policy;
Page I of 3
106
WHEREAS, the City Council approves a specific Pay Plan/Classification Plan each year the new fiscal year budget is adopted, which includes a list of all positions authorized for tliat specific fiscal year, and maintains a comprehensive list of those positions and the respective corresponding pay on a consolidated Salary Schedule;
WHEREAS, beginning in July 2022, the City Council began approving consolidated MOUs for each of the City's bargaining units, which clearly outlines each employee's benefits, working conditions, and other issues related to their employment: PMA consolidated MOU was approved on July 26, 2022 (Resolution No. 2022-45-CC); MEA and PMMA consolidated MOU was approved on March 28, 2023 (Resolution No. 2023-17-CC); POA consolidated MOU was approved on March 12, 2024 (Resolution No. 2024-18-CC); DMA consolidated MOU was approved on May 14, 2024 (Resolution No. 2024-36-CC); and the consolidated Executive Management Agreement is brought before the City Council on June 11, 2024, for approval; WHEREAS, on September 28, 2017, the City Council approved Resolution No. 7751, wliich amended the pay and benefits of City Council Members, and on December 13, 2022, the City Council passed and approved Ordinance No. 2022-11-CC, which updated City Council compensation and adopted the benefits schedule for all elected officials of the City of South Gate, including the City Treasurer and City Clerk;
WHEREAS, the City Municipal Code provides direction to the City Manager to administer personnel actions for efficient governance. Pursuant to the City of South Gate Municipal Code ("Code"), Chapter 1.06 (City Manager), § 1.06.060 (Powers and duties); WHEREAS, the California Public Employment Retirement System (CalPERS) provides requirements for the transparency of government and any approved classification/pay plan pursuant to CalPERS' interpretation of the California Code of Regulations F> 570.5 of the Public Employees' Retirement Law (PERL), recomi'nending that all CalPERS employers maintain their classification compensation levels in one publicly available document, approved and adopted by the governing body;
WHEREAS, on September 23, 2023, the City Council approved and adopted a comprehensive pay schedule for all full-time, part-time, and elected officials within CalPERS guidelines. (Resolution No. 2023-62-CC);
WHF,REAS, Resolution No. 6454 is obsolete, inefficient, and no longer necessary for the proper and effective administration of personnel within the City; and WHEREAS, it is the desire of the City Council to repeal Resolution No. 6454 and approve Attachment "A" hereto to ensure that all Terms and Conditions of Employment, which do not exist in another City source document and contained in Resolution No. 6454, remain until such time that they are placed in the proper MOU, Agreement, Regulation, and/or policy.

Page 2 of 3 ends

107

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 true and correct and incorporated lierein by reference.

SECTION 2. The City Council hereby repeals Resolution No. 6454 (Salary Resolution and Position Classification Plan) of September 22, 1998.

SECTION 3. The City Council does hereby approve and adopt the restated Terms and Conditions of Employment attached hereto as Exhibit "A." SECTION 4. The City Clerk shall certify to the adoption of this Resolution which shall be effective upon its adoption.

PASSED, APPROVED and ADOPTED this 11th day of June 2024.

CITY OF SOUTH GATE:

By:

Gil Hurtado, Mayor
ATTEST:

By:

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

BY:

DRAFT
Raul F. Salinas, City Attorney

Page 3 of 3 ends

108
Attachment "A"

TERMS AND CONDITIONS OF EMPLOYMENT
(Per Resolution ofJune 11, 2024)
For any provision of this Attachment that conflicts with an employee's Memorandum of Understanding (MOU) Or Employment Agreement, the MOU Or Employment Agreement Shall be the controlling provision.

Section 1- Definitions and Interpretation of Language.

For the purpose of this Attachment, unLess it is plainly evident from the context that a different meaning is intended, certain terms used herein are defined as follows:
'!4nniversary Date" means the most recent date of hire on a permanent basis within a classification.
"CityService" or "Service ofthe City," means service in any position or employment on a fuLL-time or regular part-time basis in any department, bureau, office, or position of the city that is subject to control and regulation, either general or specific, by the City Council. "Compensation" means the salary, wage, allowance, and all other forms of vaLuable consideration earned by, or paid to, any employee by reason of service rendered the City in any position but does include any allowance for expenses authorized and included as incidents to such service or employment.
"Employment Date" means an employee's first date of hire on a permanent basis with the City.
"Fiscal Year" refers to the Fiscal Year on which the City's general fund operates, to wit: July 1 "' of one calendar year to June 30'h of the succeeding calendar year. "Full-time Employee" is an employee other than an Hourly Employee whose employment provides that he shall be assigned to work for forth (40) hours per week. By this definition, it is intended that the distinction between an Hourly Employee (including an Hourly PERS EmpLoyee) and an employee (including Full-Time Employee's and/or Regular Part-Time Employees) is that the employee is provided with some fringe benefits in addition to those mandated by Law whereas an Hourly Employee is not.
"HoudyEmployee" is an employee of the City whose employment with the City provides for compensation at an hourly rate and does not provide for the payment of any benefits other than the benefits required by Law (e.g., Medicare, ACA, and workers' compensation) and is restricted to working a maximum of one thousand (1,000) hours in a Fiscal Year. Hourly Employees do not accrue seniority for any purpose. Hourly empLoyees must be enrolled in a deferred compensation plan in lieu of social security. The City does not contribute to this plan.

Page 1 of 5 ends

g
109
Attachment"A"- Terms and Conditions of Employment (June 11, 2024) "Hourly PERS Employee" is an Hourly Employee who has, during any Fiscal Year, worked more than one thousand (1,000) hours in a Fiscal Year and whose compensation is budgeted.

Hourly PERS Employee has a deduction for PERS taken from their salary and the City makes only the required employer contribution to the PERS and those required by Law, and shalL not accrue seniority for any purpose.
"Regular Part-Time Employee" is an employee, other than an Hourly Employee, whose employment provides that he shatL be assigned to work for a period of time Less than forth (40) hours per week, and generally greater than twenty (20) hours per week. By this definition, it is intended that the distinction between an Hourly Employee (including an Hourly PERS Employee) and a Regular Part-Time EmpLoyee (as weLl as Full-Time Employee) is that the Regular Part-Time Employee is provided with some fringe benefits in addition to those mandated by lawwhereas an Hourly Employee is not.
"HoudyRates" are determined by dividing the monthly salary step by 173.333.

As used in this Attachment:
* The term "shalr' is mandatory and the term "may" is permissive. * MascuLinegenderincLudestheTeminineandneuter;thefeminineincLudesthemascuLine and the neuter; and, the neuterincludes the masculine and feminine. * Single numberincludes the plural, and the pluralincludes the singular. * Present tense includes the present and future tenses, and the future, the present.

The definitions set forth in Section 14 of the Rules and Regulation for the Administration of a Civil Service System for the City shall apply to the terms used in this Attachment.

Section 4.2 - Increases.

FulL-Time Employees may advance through the steps of their salary range at which so hired on the basis of merit. Employees shall become eligible to earn stepincreases on the basis ofthe employee's length of service measured from the employee's Anniversary Date within the classification.

Advancement or reduction for Executive Management Employees shaLl be based on merit, fitness, and performance as determined by the City Manager.

Employees may receive their first step increase (to Step B) after six (6) months following their Anniversary Date. Each succeeding step (Steps C, D, and E) may be earned at one (1)yearintervaLs thereafter, except as set forth into the contrary herein.

Regular Part-Time Employees may advance through the steps for their respective classifications in the same manner as Full-Time Employees upon completing the scheduled work hours as follows:

To Step B after one thousand and forty (1,040) schedule work hours; to Step C after three thousand one hundred twenty (3120) scheduled work hours; to Step D after five thousand

Page 2 of 5 ends

10 110
Attachment"A"- Terms and Conditions of Employment (June 11, 2024) two hundred (5,200) scheduled work hours; to Step E after seven thousand two hundred eighty (7,280) scheduled work hours; provided, however, a breakin service in excess of thirty (30) caLendar days shall terminate alL accumulated hours for Regular Part-Time Employees.

An employee will earn a salary step increase when performance evaluations indicate that overall performance is satisfactory or better. When overall performance is unsatisfactory or needs improvement, the step increase shall be withheld until performance improves to satisfactory.

Withholding a salary increase is an administrative action, and not disciplinary, and therefore is not subject to appeal to the Civil Service Commission. Should a supervisor fail to complete an evaluation, through no fault of the employee, the employee will automatically receive any regularly scheduled increases.

Section 4.8 - Police Captain in Charge.

PoliceCaptain,whileassumingand dischargingthedutiesof"PoliceCaptain in Charge"shallbe paid an additionaL$300.00 per month, effective 5/1 3/98.

Section 4.14-Training Pay.

Community Service Officer, Civilian Custodial Officers and/or PoLice Dispatchers are paid an additional five percent (5%) of their current wages when the employee is assigned as a Trainer for neW EMPLOYEES in the same classification. The maximum length Of training pad far a Trainer per employee is the first six (6) months after the new employee is hired and the allowable pay is only when the Trainer is actually on an hour-for-hour basis, as authorized by the Chief of Police, or his designee.

Section 4.16 - Determination of Length of Service.

An employee's length of continuous service shall be measured from the employee's Last date of hire on a permanent basis by the City. Continuous service shall be broken, and all seniority shall be Lost upon the occurrence of any one of the following events:

A. VoluntaryterminationbytheempLoyee.

B. Retirement.

C. Discharge.

D. Layoffinexcessofthirty(30)caLendardays.

E. Absencefromworkforanyreasonforninety(90)calendardaysormore.However,inthecase of a bona fide unpaid medical Leave over ninety (90) days that has been granted by the Department Director and the Personnel Officer, such leave shall not constitute a break in continuous service.

Section 4.19 - Determination of Hourly Rates.

Hourly rates as set forth in the consolidated Salary Schedule shall be determined by dividing the monthly salary step assigned by 173.333.

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11 111
Attachment "A"- Terms and Conditions of Employment (June 11,, 2024) Section 5.6 - Uniform Allowance for Hourly Parks Ranger.

A. Uniform Requirements for Hourly Parks Ranger.

Each Hourly Parks Ranger shall receive an annual uniform allowance of $a:s.oo per fiscal Year.

1. Approved Uniform
The approved uniform equipment shall consist of shirts, jackets, socks, belts, and hard toes, non-skid sole and heel approve safety shoes.

Section 5.15 - Other Cash Allowance.

The cash allowances provided For herein are not and shall not be construed to be a part ofthe regular compensation for any employee who qualifies for such an allowance. Said allowance constitutes compensation for the specific purposes set forth herein.

Section 6.8 - Emergency Overtime.

In the event a disaster or state of emergency is declared by (1) the City Council or Director of Emergency Services (City Manager) in accordance with the provisions of the South Gate Municipal Code Chapter 7.14 or (2) either by the County of Los AngeLes, the State of California, or the federal government, declared disaster and emergency overtime shall be paid as provided below:

A. Overtime-Exempt Employees -shall be paid at the rate of straight time multiplied by their regular rate of pay for all time actually worked in excess of forty (40) hours per work week in either pay or compensatory time-off, at the discretion of the City Manager.

B. Sworn Employees - shall be paid at the rate of time and one half (1 %) multiplied by their regular rate of pay for all time actually worked in excess of one hundred sixty (160) hours in a twenty-eight (28) day pay period.

C. Non-SwornEmployees-shallbepaidattherateoftimeandonehaLf(11/z)multipLiedby their regular rate of pay for all time actually worked in excess of forty (40) hours per work week. Any paid Leave time taken during said pay period shall be counted as time actually worked for overtime purposes.

Section 8.5 - State Disability Insurance.

Full-Time, Non-Sworn Employees are covered under the State Disability Insurance program.

EmptoyeeS pad One and three-tenths percent (1.3%) Of heir grOSS pad far H!S COVerage. Elected officials, Sworn Employees, and all part-time employees are excluded from this program.

Section 9.1- Apportionment of Salary to Various Departments.

The City COunCil reserves the rigm in adopting any motion, resolution, or schedule, at any time, to charge or apportion, in whole or in part, the compensation provided for any officer or employee of the City against any particular department or departments, fund or funds, account or accounts, of

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Attachment"A"- Terms and Conditions of Employment (June 11, 2024) said City, as the City counciL, in its discretion, may determine. In the absence ofinstruction from the City Council, the City Manager is authorized to make such apportionment. When so ordered, provided, or indicated by said City Council or City Manager, such compensations or salaries may be charged or apportioned on the municipal records and accounts accordingly.

Section 9.3 - Additional Pay
Special, additional, or other pay, compensation or fees, shaLl be payable upon the presentation of proper demands therefore to the City Council, to be presented, audited, and approved in the usual manner.

Section 9.4 - Maintaining of Telephone by Employees.

Executive Management Employees and supervisors in various departments, and all stand-by personnel of said City are hereby required, at their own expense, to maintain telephones in their respective places of residence so that they may readily be reached in case of any and aLL emergencies.

Section 11- Severability
It is understood and resolved that this Attachment is subject to all present and future applicable federal wage and salary control laws and regulations, as well as other applicable federaL and state laws and regulations. If any part ofthis Attachment isin conflict orinconsistent 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 part or provision shall be suspended and superseded by such applicable law or regulations, and the remainder of this Attachment shall not be affected thereby and shall remain in full force and effect.

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Item No. 7
Office of the
SOuth GaVte CMy Cilerk
'jUN -5 202'l
FaLED
zaiiS'r"
City of South Gate

CITY COUNCIL
A(GIENIDA IBfflLTl
For the Regular Meeting ofi June 11, 2024
Originating Department:
nepartmentDirector: lM A/MIX' CityManager:

Darren Arakawa Rob Houston
SUBJECT: AMENDMENT N0. 2 TO CONTRACT N0. 3396 WITH MR. C'S TOWING OF SOUTH GATE, INC., FOR TOWING AND STORAGE SERVICES PURPOSE: To approve Amendment No. 2 to Contract 3396 with Mr. C's Towing of South Gate, Inc., Towing and Storage Services.

RECOMMENDED ACTIONS: The City Council will consider:
a. Approving Amendment No. 2 to Contract No. 3396 with Mr. C's Towing of South Gate, Inc., for the adjustments of towing and storage fees; and b. Authorizing the Mayor to execute Amendment No. 2 in a form acceptable to the City Attorney.

FISCAL IMPACT: There is no Fiscal Impact to the General Fund as the increase in fees are paid by the owners of towed and stored vehicles.

ANALYSIS: On November 28, 2017, The South Gate City Council approved Contract No. 3396 with Mr. C's Towing of South Gate, Inc., for towing and storage services effective December 23, 2017 through and including December 31, 2019. This agreement was modified on August 27, 2019, which extended the term of the agreement for an additional five years, through and including December 31, 2024.

A provision in Contract No. 3396 (Page 7 of 12) Section 302 Subsection E- Fee Limits and Posting "Said rates, fees, and charges, shall apply equally to any additional towing and storage Contractors with whom the City enters into a contract with to provide Services in the future. In addition, such rates, fees and charges shall be subject to review and modification on the first day of each calendar year by the Chief of Police or his designee.

Since the Contract was awarded in 2017, the fees have remained rinchanged. At the request of Mr.

C's Towing, a review of the rates was requested due to the increase in operational costs.

BACKGROUND: A review of Cities in the surrounding Southeast Los Angeles Area was collected and reflect the following:
1 114

SGPD SGPD
(Current) (Proposed)
Bell
Gardens
PD
Bell
PD
Downey
PD
Huntington
Park PD
Long
Beach
PD
Commerce CHP
(ELA)
Tow Fee !>170 9z3o !>202 !?260 4z3t 4;>7o ':233 4z7o §:i7o Storage
Fee
*45 !'70 *55 !'75 !;55 !:77 !i76 'i77 !?77
Based on the rates of surrounding Cities, the recommendation is to increase two specific fees; Tow Fee and Storage Fee so that they are commensurate with other Cities. The current Tow Fee of $170 is proposed to increase to $230 and the current Storage Fee of $45 is proposed to increase to $70.

ATTACHMENTS: A. Proposed Amendment No. 2 to Contract No. 3396 B. Contract No. 3396
C. Amendment No. I to Contract No. 3396
2 115
Attachment A Amendment No. 2
to Contract No. 3396
AMENDMENT N0. 2 TO CONTRACT N0. 3396 FOR TOWING AND

STORAGE SERVICES BETWEEN THE CITY OF SOUTH GATE AND MR. C's TOWING OF SOUTH GATE, INC.

This Amendment No. 2 to Contract No. 3396 for Towing and Storage Services ("Agreement") is made and entered into effective as on June 12, 2024, by and between the City of South Gate, a municipal corporation ("City"), and Mr. C's Towing of South Gate, Inc., a California corporation ("Contractor"). City and Contractor are sometimes hereinafter individually referred to as a "Party" and collectively as "Parties."

RECIT ALS
WHEREAS, since 2002, Contractor has provided the City with towing and storage services under various contractual anangements dating back to December 23, 2002, pursuant to that certain Towing and Storage Franchise Agreement, Contract No. 2095, having a term of ten (10) years ("Agreement No. 2095");
WHEREAS, in 2012, the City selected Contractor after seeking responsive bids and entered into the Towing and Storage Franchise Agreement, dated December 11, 2012, Contract No. 2879, for a term of five (5) years ("Agreement No. 2879") as the exclusive towing and storage provider pursuant to Title 6 of the Sorith Gate Municipal Code; WHEREAS, in 2017, the City approved Contractor to provide similar services under that certain Contract for Towing and Storage Services Agreement, dated November 28, 2017, Contract No. 3396 for a term of two (2) years ("Agreement No. 3396") and later extended the term to 2019; WHEREAS, the City and Contractor entered into Amendment No. 1 to Agreement No. 3396, dated Arigust 27, 2019, which extended the term for an additional five (5) years through and including December 31, 2024; and
WHEREAS, since 2017, the fee rates chargedto owners of towed or stowed Light vehicles has not changed, and whereas the City and Contractor desire to enter into Amendment No. 2 to Agreement No. 3396 to allow such fees for towing and storage to be increased from $170 to $230 for towing light vehicles, and from $45 to $70 for storage.

NOW, THEREFORE, the Parties hereby agree as follows:

1. MODIFICATION TO AGREEMENT

1.1 RATES , FEES AND CHARGES (SECTION 302.E)
City hereby agrees that Subdivision E (Fee Limits and Posting) of Section 302 (Rates, Fees and Charges) of Agreement No. 3396, shall be amended such that Contractor's Towing Fee for towing "Light" vehicles (vehicles weighing less than 1 ton) shall be increased from $170 to $230 per tow, effective as of Jrine 12, 2024.

Contractor's rates for towing "Medium" Vehicles (vehicles over 1 ton and over 20') and "Heavy" vehicles (vehicles over 2 tons and over 41 ') remain unchanged. City

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Amendment No. 2
to Contract No. 3396
further agrees that the Contractor's Storage Fee shall increase from $45 to $70, effective June 12, 2024.

EFFECT OF AMENDMENT. Except as expressly amended herein, all other terms and conditions of Agreement No. 3396 and its Amendments shall remain in full force.

CALIFORNIA LEVINE ACT DISCLOSURE STATEMENT. In accordance with Califon'iia SB1439 extended reqriirements ruider Governinent Code Section 84308, also known as the "Levine Act," a disclosure tnust be filed of political contributions totaling more than Two Hundred Fifty Dollars ($250) within the previous twelve (12) montlis, and for tluaee (3) months following the date a final decision is made to award an agreement.

Tlierefore, 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 tlie approval of this Amendment.

IN WITNESS WHEREOF, the Parties hereto have caused this Amendment No. 2 to be executed and attested by their respective officers hereunto duly authorized.

CITY OF SOUTH GATE:

Dated: June , 2024 By:

Gil Hurtado, Mayor
ATTEST:

By:

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

B7:

Raul F. Salinas, City Attorney
MR. C's TOWING OF SOUTH GATE, INC.:

Dated: June 2024 By:
krry Brown, General Manager
AS13772.0860812 4866-3617-9653vl

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Attachment B
Contract No. 3396

CITY OF SOUTH GATE

TOWING AND STORAGE FRANCHISE AGREEMENT
This Towing and Storage Franchise Agreement ("Agreement") is made and entered into as of November 28, 2017 by and between the City of South Gate, a municipal corporation ("City"), and Mr. C's Towing of South Gate, Inc., a California Corporation ("Contractor")

RECIT ALS
This Agreement is made with reference to the following facts:

A. The City requires, from time to time, towing and storage services in connection with vehicles which have been determined to be a public nuisance pursuant to Title 6 of the South Gate Municipal Code, or which are in violation of statutes and ordinances relating !O parking, traffic, and law enforcement, including without limitation, Title 8 of the South Gate Municipal Code. Those services shall include, but will not be limited to, responding to locations of police emergency situations when requested for the purpose of removing vehicles that are apparently abandoned or involved in an accident; or which constitute an obstruction of traffic because of: (1) mechanical failure; (2) vehicles determined to be public nuisances or in violation of statutes and ordinances relating to parking, traffic, and law enforcement; (3) accident or roadway clean up; or (4) tow services for City owned vehicles at no cost to the City (hereinafter collectively referred to as the "Services").

B, Contractor represents that it has the managerial and operating personnel, and facilities and equipment, necessa3y to provide the required Services to thef City on the terms and conditions hereinafter set forth.

C. In 2012, the City issued and implemented a request for qualifications for the Services ("RFQ"). Contractor submitted a responsive statement of qualifications, and the City selected Contractor as a provider of the Services commencing December 23, 2012. The 2012 agreement provided for a term of five (5) years, and allowed an option at the City's discretion for a two year extension thereof. The City Council has elected to exercise the option and extend the term of the Contractor's services from December 23, 2017 to and including December 3'l, 2018, and to make modifications to the 2012 agreement, as reflected herein. The terms of this Agreement shall supersede the 2012 agreement, including a related amendment thereto, with the Contractor.

NOW, THEREFORE, in consideraUon of the mutual promises, covenants and conditions herein contained, the parties agree as follows:
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PARTIES, TERM AND SCOPE OF SERVICES
Section 101. Parties to the Agreement.

The parties to this Agreement are:

A. The City of South Gate, a municipal corporation, having its principal office at 8650 California Avenue, South Gate, California 90280-3075.

B. Mr. C's Towing of South Gate, Inc., a California Corporation, at 4421 Mason Street, South Gate, California 90280
Section 102. Representatives of the Parties and Service of Notices.

The representatives of the respedive parties who are authorized to administer this Agreement, and to whom formal noti, demands and oommuniztions shall be given, are as follows:

A. The representatrve of the City shall be:

Chief of Poli>
CITt' OF SOUTH GATE
8620 Califomia Avenue
South Gate, California 90280
\/\/ith a oopy to:

City Manager
City Clerk

CITY OF SOUTH GATE
8650 Caltfomia Avenue
South Gate, Califomia 90280
B. The representative of Contractor shall be:

Jerry Brown, General Manager
Mr. C's Towing of South Gate, Inc., a Calffomia Corporation 4421 Mason Street
South Gate, Califomia 90280
C. Formal notioes, demands and mmmuni>tions to be given hereunder by either party shall be made in writing and may be affected by personal delivery or by first class u.s. mail, postage prepaid. 2 of 12
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D. If the name of the representative designated to receive the notices, demands or communications for the parties or the address to which notice shall be given is changed, written notice of such change shall be given to the other party within (10) calendar days of said change.

Section 103. Term of Franchise Agreement
A, Contractor acknowledges and confirms that the City may in its sole discretion enter into agreements with other providers of the Services that are the subject of this Agreement. In that regard, nothing contained in this Agreement shall be deemed, construed or interpreted to give Contractor an express or implied exclusive right to provide the Services to the City, whether of the same or substantially similar type or nature of Services or otherwise.

B. The term of this Agreement shall be for slightly longer than two (2) years, commencing on December 23, 2017, through and including December 31, 2019.

C. Performance under this Agreement shall not commence until Contractor has obtained the City's written approval of the insurance required in Section 401.

D. If Contractor does not have a tow yard within the City's boundaries, Contractor shall use best efforts to locate and open a tow yard within six (6) months from commencement of the Agreement.

Section 104. Termination for Convenience
A, The City may, at its sole option and discretion, terminate this Agreement for convenience by giving Contractor thirty (30) days written notice thereof in accordance with Section 102.C herein. Contractor agrees and acknowledges that it shall continue to provide the Services to the City during the thirty (30) day notice period described in this Section 104.A.

Section 106. Termination for Cause
This Agreement may be terminated for cause by either party upon the occurrence of any of the following:

A. Failure to Perform or Material Breach. There shall be a substantial failure to perform or material breach of the Agreement by the other par§ with respect to one or more of its obligations hereunder, which failure to perform or material breach shall not have been cured within ten (10) mlendar days after written notice specifying the nature of such failure to perform or material breach.

B. Bankruptcy. Should either party here file a voluntary petition in bankruptcy, or be declared insolvent, or execute an assignment for the benefit of creditors, or should an involuntary petition in bankruptcy be filed, or 3 of 12
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should a receiver or trustee be appointed by any court or government agency to administer the affairs and assets of such party, then and in that event, the other party hereto may, at its option, terminate this Agreement by giving the first party, or its legal representative, written notice of its election to so terminate, effective immediately on the date of such notice, or any date thereafter selected by the party electing to terminate.

C, Dissolution. Upon the dissolution of either party, this Agreement shall automatically terminate.

Section 106. Termination for Acts of Moral Turpitude A. This Agreement may be immediately terminated by the City at its sole option in the event that the City acquires information or knowledge which causes the City to have a reasonable belief that Contractor has: (1) committed a crime of moral turpitude including but not limited to embezzlement, fraud or commission of any other felony, or a misdemeanor involving acts of dishonesty, or (2) engaged in actions or conduct that has caused adverse effects on the reputation of the City, and/or the City's relationships with its citizens or members of the general public.

B. The City shall give Contractor notice of termination of the Agreement in accordance with Section 102.C herein. Termination of this Agreement under Section 106 hereof shall be effective as of the date of service of the Notice of Termination as set forth in Section 1 02.C.

Section 107. Scope of Services.

A, City hereby engages Contractor and Contractor accepts such engagement, as a provider of the Services for those vehicles which are generally described in Paragraph A. of the Recitals of this Agreement.

Contractor shall perform the Services in a prompt, efficient and orderly manner following notification by the City's representative, as designated in Section 102.A, above, or by any other authorized officer or employee of the City.

B. Contractor shall provide the Services for all vehicles registered to the City, within a fifty (50) miles radius of the City limits, at no charge to City. The Services shall be provided by Contractor at all times (24/7/365) including weekends and holidays. The Services shall include, but are not limited to tire changes, battery jump starts and towing of inoperable vehicles.

C. For the first fifteen (15) days of an evidentiary hold of a vehicle which belongs to a victim of a crime, Contractor shall not charge any storage fees for this period of time.
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D. Contractor acknowledges there are some situations when a local agency must go outside the City limits to make arrest(s) or for investigative purposes. Contractor agrees to respond to all City/Police requests within the City and outside City limits.

E. If requested, Contractor shall grant periodic requests to utilize its facilities for City's K-9 unit training. South Gate facilities shall also be available to the South Gate Police Department for similar training, should they need.

II.

Section 201. Chief of Police
The Chief of Police or his designee shall be responsible for the administration of this Agreement. The Chief of Police or his designee is authorized to issue to Contractor directives concerning policies and procedures to be implemented in connection with the towing and storage of vehicles. All policies and procedures shall not be in conflict with any policy or procedure specified in this Agreement, and must apply equally to all City tow and storage Contractors. In the event of a dispute between the parties as to the nature and extent of the services to be performed hereunder, or the level and manner of performance, the dispute shall be referred to the Chief of Police or his designee, and then; if unresolved, to the City Manager or his designee. The City Manager or his designee may refer the matter for an administrative hearing if any party to the dispute so requests.

Ill. 44
Section 301. Independent Contractor Status.

The parties agree that the performance of Contractor's servi>s hereunder shall be In the capacity of an independent contractor, and that no officers, agents, employees, or subcontractors of Contractor have been, are or shall be employees of the City by virtue of this Agreement. Contractor shall so inform each individual or entity which is hired, retained or engaged to peform any services under this Agreement.

Section 302. Rates, Fees and Charges.

A. Franchise Fee. The Franchise Fee shall be $10,000.00 payable as follows: $5,000.00 upon the execution of this Agreement, and one additional payment of $5,000.00 payable on or before December 23, 2018. If that day falls on a holiday, set payment shall be due on the next business day. In addition, Contractor shall pay to the City, on a monthly basis, an amount equal to fiffeen percent (15%) of Contractor's gross income for all towing and storage services 5ofl2
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as a monthly Franchise Fee. Said Franchise Fee shall be paid no later than the 10th calendar day of each month for the gross income collected in the month immediately preceding.

B, Administration Fee. Contractor agrees to pay the City Forty Five dollars ($45.00) for every vehicle hooked up to a tow vehicle within the City which requires the submission of a CHP 180 form, whether by request of the City Police or a private party; or for any private property Impound within the City of South Gate. This said fee will be passed on to the vehicle owner and then sent to the City by the 10th calendar day of each month. Contractor must pay said fee regardless of whether payment is received from the vehicle owner.

C. Late Payment Charqes. Franchise Fees and Administrative Fees as described herein (the "Fees") shall be deemed timely paid only if delivered or postmarked on or before the due date. If the Fees are not timely paid by the thirtieth (30) calendar day following the month in which the Fees were generated by the Contractor, Contractor shall be subject to Termination for Cause under this Agreement and/or to any other charges which may be established and assessed by the City, including, but without limitation, a late payment charge equal to one and one-half percent (1.5%) per month of the unpaid balance of Fees due and owing for each month, or portion thereof, that the Fees remain unpaid. Failure to tender the unpaid balance within ten (10) calendar days of receiving written notice that any outstanding balances is past due may, in the sole discretion of the City, result in the immediate termination of the Contract.

D. No City Liability. City shall have no responsibility or liability to Contractor for payment of any costs, charges or expenses incurred by Contractor for towing or storing any vehicles pursuant to the terms of this Agreement.

Contractor shall have the right to salvage vehicles pursuant to this Agreement, subject to compliance with all applicable statutes and regulations.

E. Fee Limits and Posting. The rates, fees and charges imposed by Contractor for towing or storing any vehicles pursuant to the terms of this Agreement shall be as follows:
s.e.p.o. LIGHT $170.00 $45.00 lJnder 1 Ton
S.G.P.D. MEDIUM $'l85.00 $45.00 Over 1 Ton & Over 20' S.G.P.D. HEA\/Y $250.00 $45.00 Over 1 Ton & Over 41 ' All standard service calls such as, but not limited to, tire change, dollying, winching, loading and unloading, clean-up, lock-out service and/or fuel delivery service shall be subject to a Forty-Five Dollars ($45.00) per hour service fee. In addition, After Hour gate Fee (after 7:00 p.m. Monday through Sunday) shall be charged in the amount of Eighty Five Dollars ($85.00) per vehicle release. 6 of 12
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Said rates, fees and charges shall apply equally to any additional towing and storage Contractors with whom the City enters into a contract with to provide Services in the future. In addition, such rates, fees and charges shall be subject to review and modification on the first day of each calendar year by the Chief of Police or his designee. Such rates, fees and charges shall be posted in a conspicuous location at Contractor's place of business and may be collected by Contractor from a vehicle owner or property owner at the time he or she receives service or desires to affect the release of the vehicle from Contractor's storage facilities.

F. Resolution of Disputes. Should there be any dispute between Contractor and a vehicle owner or property owner over rates, fees and charges imposed for services rendered under this Agreement, such dispute shall be decided by the Chief of Police or his designee, and Contractor shall make no demands upon the vehicle owner or property owner for a sum in excess of the amount determined to be reasonable by the Chief of Police or his designee. The Chief of Police or his designee may refer the matter for an administrative hearing if any party to the dispute so requests.

Section 303. Regulations.

Contractor shall comply with all state statutes and local ordinances, shall make all reports required by the Vehicle Code of the State of California, and shall follow all reasonable rules and regulations which the Chief of Police of the City or his designee may from time to time prescribe governing the conduct of Contractor's operations under this Agreement, Said rules and regulations shall be in writing and apply equally to all City towing and storage Contractors. The "Rules and Regulations" applicable upon the effective date of this Agreement are attached hereto as Exhibit A and incorporated herein by this reference.

FAILURE OF CONTRACTOR TO COMPLY WITH THE RULES AND

REGULATIONS SHALL CONSTITUTE CAUSE FOR TERMINATION OF THIS FRANCHISE AGREEMENT.

Section 304. Record Keeping and Reporting.

Contractor shall keep records on all vehicles handled by Contractor pursuant to this Agreement as set out in Article VI B of Attachment A. Reports containing said records shall be submitted for each month no later than the 1 5th day of the following month. Said reports shall be submitted. to the Chief of Police or his designee in writing and on external computer drive, or sent by e-mail, using a spreadsheet program acceptable to the Chief of Police or his designee. The Chief of Police or his designee may conduct periodic audits of Contractor's records, Should there be any dispute between Contractor and the City relating to the records and fees paid, such dispute shall be referred to the Chief of Police or his designee, and then, if unresolved, to the City Manager or his designee. The City Manager or his designee may refer the matter for an administrative hearing if either party to the dispute so requests.
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IV. GENERAL TERMS AND CONDITIONS
Section 401. Insurance.

A. Liability Insurance, Contractor shall obtain and maintain in force at all times during the term of this Agreementthe following insurance coverage:

1. Garage liability insurance with minimum limits of liability of One Million Dollars ($1,000,000) combined single limit coverage against any injury, death, loss or damage due to any wrongful or negligent acts or omissions by Contractor, subcontractor and/or his employees.

2. Automobile liability insurance covering all vehicles used by Contractor to fulfill this Agreement, with minimum limits of liability of One Million Dollars ($1,000,000) combined single limit coverage against any injury, death, loss or damage due to wrongful or negligent acts or omissions by Contractor and/or his employee and/or subcontractors.

3. "On-Hook" liability insurance with minimum limits of Tmnty- five Thousand Dollars ($25,000).

4. Garage keeper's liability insurance with minimum limits of Two Hundred Thousand Dollars ($200,000) combined single limit coverage
All insurance required hereunder shall be issued by a company rated "A" or better in Best's Kay Rating Guide and authorized to transact business in the State of California as an admitted surety insurer.

B. Certificate of Insurance. Contractor shall not commence peformance under this Agreement until all insurance required under this section has been obtained and such insurance has been approved by the City, Contractor shall furnish to the City certificates of insurance evidencing the required coverage, and there shall be a specific contractual liability endorsement extending Contractor's coverage to include the contractual liability assumed by Contractor pursuant to this Agreement. Said certificates shall name as additional insureds the City and its officers, employees and agents, and shall specify or be endorsed to provide that thirty (30) days' notice must be given of any pending change in the limits of liability or of any cancellation or modification of the policy, Said certificates shall further provide that the insurance afforded thereby to the City and its officers, agents and employees, shall be primary insurance to the full limits of liability of the policy, and that if the City, or its officers, agents and employees, have other insurance against a loss covered by such a policy, such other insurance shall be excess insurance only.
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C. Workers' Compensation & Employer's Liability Insurance.

Throughout the term of this Agreement, Contractor shall obtain and maintain Workers' Compensation and employer's liability insurance. That minimum limits for the Workers' Compensation shall be governed by California statute and the minimum limits for the employer's liability insurance shall be One Million Dollars ($1 ,ooo,ooo).

D. Failure to Provide Insurance. Notwithstanding Section 104, the City may, without prior notice, immediately suspend or terminate this Agreement if, at any time, Contractor fails to provide or maintain the insurance required hereunder
E. Increase in Coveraqe, Nothing contained in this section shall be deemed to preclude the City, after consultation with other law enforcement agencies, from requiring Contractor to increase the amounts of insurance coverage specified herein, or to obtain and maintain other types of insurance coverage, in order to protect the interests of the City and its vehicle owners and operators. Contractor shall comply with such new or additional requirements within a reasonable time after receipt of City's written request.

Section 402. Indemnification.

Contractor shall undertake and agree to defend, indemnify and hold harmless the City, its elective and appointed boards, officers, agents, assigns and successors in interest, from and against all suits, and causes of action, claims, losses, demands and expenses, including but not limited to, attorneys' fees and costs of litigation and investigation in order to defend against any damage or liability of any nature whatsoever; for death or injury to any person, including Contractor's employees and agents, or damage or destruction of any property of either party hereto or of any third party, arising in any manner by reason of, or in incident to, the performance of service under this Agreement on the part of Contractor, or Contractor's officers, agents; servants, employees or subcontractors.

Section 403. Non-Discrimination.

A. In the performance' of this Agreement, Contractor shall not discriminate against any member of the public, employee, subcontractor, or applicant for employment because of race, color, religion, ancestry, sex, national origin, handicap or age. Contractor will take affirmative action to ensure that members of the public are served, subcontractors and applicants are employed, and that employees are treated during employment without regard to their race, color, religion, ancestry, sex, national origin, handicap or age. 9ofl2
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B. The provisions of Section 403 A, above, shall be included in all solicitations or advertisements placed by or on behalf of Contractor for personnel to perform any services under this Agreement. City shall have access to all documents, data and records of Contractor and its subcontractors for purposes of determining compliance with the fair employment and non-discrimination provisions of this Section.

Section 404. Permits and Licenses.

Contractor shall obtain and maintain during the term of this Agreement all necessary licenses, permits and certificates required by law for the conduct of Contractor's activities and for the provision of services hereunder, including a business license issued by the City.

Section 405. Conflict of Interest.

The parties agree that, to their knowledge, no member of the City Council, officer or employee of the City has any interest, whether contractual, non-contractual, financial or otherwise in this transaction, or in other business of Contractor, and that if any such interest comes to the knowledge of either party at any time, a full and complete disclosure of all such information will be made in writing to the other party, even if such interest would not be considered a conflict of interest under applicable laws. Contractor covenants that it has, at the time of execution of this Agreement, no interest, and that it shall not acquire any interest in the future, direct or indirect, which would conflict in any manner with that performance of services required hereunder.

Contractor further covenants that, in the performance of the services hereunder, no person having any such interest shall be engaged or employed.

Section 406. Resolution of Disputes.

A. Disputes regarding the interpretation or application of any provisions of this Agreement shall, to the extent reasonably feasible, be resolved through good faith negotiations between the parties, Thereafter, any dispute or controversy arising under this Agreement, including a dispute regarding the amount of fees, shall be determined and settled by binding arbitration in Los Angeles County under the rules of the Judicial Arbitration and Mediation Services (JAMS). Judgment on the award may be entered by any Court having competent jurisdiction.

B. Disputes regarding the precipitating cause for any removal, seizure or impound of a vehicle directed by the Police Department shall, to the extent feasible, be resolved by the Police Department Station Commander pursuant to Division 11, Chapter 10 of the Vehicle Code commencing with Section 22850 thereof; provided, however, that this procedure shall not apply to removal of vehicles pursuant to Sections 22660 through 2668, inclusive, and Sections 22655, 22658, or 22710 of the Vehicle Code. Unresolved disputes shall be 10 of 12
4584565.2 - L235 0
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referred to the attention of the Police Department Traffic Supervisor by the aggrieved party within ten (10) days after the disputed removal, seizure or impound. A hearing shall be conducted by the City's Police Traffic Supervisor in accordance with the hearing rules established by the Police Department.

Contractor shall abide by the decision rendered.

C. If any action at law or in equity is brought to enforce or interpret any provisions of this Agreement, the prevailing party in such action shall be entitled to reasonable attorneys' fees, costs and necessary disbursements, in addition to such other relief as may be sought and awarded.

Section 407. Amendments.

This Agreement supersedes all prior proposals, agreements and understandings between the parties and may not be modified or terminated orally, and no modification, termination, or attempted waiver of any of the provisions hereof shall be binding unless in writing and signed by the party against whom the same is sought to be enforced.

Section 408. Governing Law.

This Agreement shall be governed by the laws of the State of California, [The remainder of this page lefi blank for spacing purposes.] llofl2
15 4584565.2-L235.0
128
Section 409. Enforceability.

In case any one or more of the provisions or parts of a provision contained in this Agreement shall for any reason be held to be invalid, illegal or unenforceable in any respect in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision or part of a provision of this Agreement or the validity or enforceability of such provision of portion thereof in any other jurisdiction; rather, this Agreement shall be reformed and deemed to be and construed in any such jurisdiction as if such invalid or illegal or unenforceable provision or part of a provision had never been contained herein or therein, and such provision or part shall be reformed so that it would be valid, legal and enforceable to the maximum extent permitted, in such jurisdiction

NOW, THEREFORE, THE PARTIES AGREE TO EACH OF THE TERMS SET FORTH ABOVE.

CITY OF SOUTH GATE
Date:
17/aq/h" R:r;>&4
Date: baa ffi ll
MR. C's TOWING OF SOUTH GATE,
I . a California Corporation
General Manager
AkaT !
Carmen Avalos, City Clerk
APPROVED AS TO FORM:
aul F. Salinas, City Attorney
12 of 12
4584565 2 - 1235.0
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EXHIBIT A

RULES AND REGULATIONS
The Rules and Regulations set forth below shall govern the conduct of Contractor's operations under the TOWING AND STORAGE FRANCHISE AGREEMENT ("Agreement") by and between the CITY OF SOUTH GATE, a municipal corporation ("City"), and Mr. C's Towing of South Gate, Inc., a California Corporation
I. AVAILABILITY OF SERVICES
A. Towing services shall be available 24 hours a day, 7 days a week, 365 days a year.

B. Vehicles must be available for release from impound and storage 24 hours a day, 7 days a week, 365 days a year. Contractor must clearly mark its storage facility with a telephone number to call if release is requested after normal working hours.

C. Contractor shall respond to the location requested by the City within fiffeen (15) minutes of receipt of a call from the City, as to Light Duty tows. As to Medium and Heavy Duty tows (due to the oversized nature of the response units), Contractor shall respond to the location requested by the City within thirty (30) minutes of receipt of a call from the City. If Contractor is not able to respond within the aforemenUoned response time, it shall notify the City immediately advising the City of the expected time of arrival (ETA).

If the ETA is unacceptable to the City, the City reserves the right to contact an alternate towing Contractor to provide the service.

D. Contractor shall have at least three (3) tow trucks available for service required by the City under this Agreement 24 hours a day, 7 days a week, 365 days a year.

E. Contractor may be requested periodically to provide deployment of additional trucks for special events such as DUI check points street fairs and/or parades. Contractor shall have the capability, with or without the use of subcontractors to provide tow service for two hundred (200) vehicles in a five (5) hour period for said special events. Such events will be coordinated with Contractor at least 24 hours in advance.

F. Contractor shall provide all roadside assistance, including, but not limited to, unlimited towing, lock out, roadside cleanup, and jump services for all City owned vehicles within a 50 mile radius of the City limits, at no additional cost to the City.
1 4584565.2 - 1235.0
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IMPOUNDED VEHICLES
All impounded vehicles shall be stored in a building or in an area that is secure and enclosed by walls or fencing that is approved by the City, Contractor will maintain a secured facility or facilities equipped with 24- hour closed circuit television surveillance, attendants on duty 24 hours a day, or another City approved means of security, as approved by the Chief of Police or his designee.

B. The entire storage facility, including but not limited to public access areas, must be illuminated to such a degree that clear visual observation of the facility may be made during the hours of darkness.

C, The storage facilities must be capable of holding a minimum of seventy- five (75) cars, with sufficient room to provide reasonable accessibility and to prevent damage.

D, Contractor shall not perform any work 6r services upon any impounded vehicle without first obtaining the owner's written consent to such work or SeNiCeS.

E. No contract or purchase order for repairs on an impounded vehicle shall be solicited or received by Contractor from an owner until the vehicle has been released by the Chief of Police or his designee.

Contractor shall safeguard all vehicles and other property placed in its possession pursuant to the Agreement. The indemnification set forth in section 402 shall be applicable to all claims or demands attributable to or arising out of Contractors possession, control and handling of such vehicles and property.

G. The storage facility shall have one separate enclosed garage capable of holding a minimum of five (5) vehicles, for vehicles that have been ordered impounded by the Police Department as a result of being involved in the commission of a crime or as evidence. Said enclosed garage shall be lockable and the Police Department may have possession of the key to the garage. Vehicles stored in said garage shall not be removed from protective storage until released by the Chief of Police or his designee.

H. With the exception of private impounds, Contractor shall not remove any vehicle from the storage facilities without authorization from the Chief of Police or his designee.
2 4584565.2-1235 0
131
Ill RELEASE OF IMPOUNDED VEHICLE
A. Contractor shall re)ease impounded vehicles only upon presentation of an official Police Department Release signed by an authorized officer of the City's Police Department.

B. Contractor shall ensure that personne) are available at all times of the day or night to release any vehicle impounded or stored on the premises.

Contractor shall advise the Records Bureau of the Police Department of all vehicles impounded by the Police Department and not released after thirty (30) days. Contractor shall identify such vehicles by year, make, model, color, license and vehicle identification number, and shall comply with Section 10652 of the Vehicle Code by notifying the California Highway Patrol, Sacramento, California, by receipted mail.

If Contractor fails to give the notice referred to in Section 10652 of the Vehicle Code, the indemnification provisions of Section 402 of the Agreement shall apply to all claims, demands or suits against the City attributable to or arising out of such failure.

E, Contractor will, at the request of the Chief of Police or his designee, release any vehicle from storage and/or impound at no cost to the registered owner or the City.

IV. CONTRACTOR'S TOW TRUCKS
Each tow truck shall be supplied with such forms as may be specified by the Chief of Police or his designee for the purpose of taking a complete inventory of the contents of any vehicle that is to be removed from the street or from public or private property when the vehicle owner is not present. The operator of each tow truck shall complete the specified forms in accordance with instructions from the Chief of Police or his designee.

Contractor shall have available a minimum of three (3) standard tow trucks of one ton rating or greater with dual rear wheels and one flat bed tow vehicle for service provided under this Agreement to the City. In addition, Paragraph 1, Section D, of this Agreement provides for the availability of at least 3 tow trucks at all times.

Contractor shall either have, or have access through a subcontractor, special towing equipment which is required to handle unique vehicles, such as classic or luxury automobiles, and specialized types of vehicles such as motor homes, motorcycles and forklifts.
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D. Contractor shall either have or have access through a subcontractor, a tow vehicle capable of towing large trucks.

E. Contractor shall not employ converted pickup trucks or other vehicles not specifically designed by the manufacturer for towing other vehicles.

All vehicles used shall contain necessary communications equipment for radio transmissions and reception which comply with all FCC regulations and requirements. City frequencies shall not be used by Contractor and all of the aforementioned equipment shall be purchased and maintained at Contractor's expense.

G. All vehicles shall be well maintained and neat in appearance and conform with the appearance guidelines set by the City Manager or the Chief of Police or either of their designees
H. All tow vehicles shall have a cable winch of sufficient size and capacity to retrieve vehicles that may have gone over embankments or off traveled portions of roadways into inaccessible locations.

All tow vehicles shall also have the capability to tow a boat or other trailered items.

J, Contractor is expected to possess the standard tools of the trade such as slim Jim, dolly, etc.

K. All vehicles shall also conform to and be maintained according to the latest edition of the California Highway Patrol procedures Contractor's tow trucks shall be rated, at a minimum, at one-ton capacity, and each vehicle shall be equipped, operated and maintained in compliance with Sections 24605, 25253, 25300, 27700 and 27907 of the Vehicle Code.

M. Contractor's tow trucks shall be inspected at least annually, and a copy of the inspection report shall be delivered to the Chief of Police or his designee. All disputes related to inspection reports shall be referred to the Chief of Police or his designee, and then, if unresolved, to the City Manager or his designee. The City Manager or his designee may refer the matter for an administrative hearing if any party to the dispute so requests.

N. "Official Police Tow" shall be clearly designated on all of Contractor's tow trucks in a form approved by the Chief of Police or his designee. 4 20
4584565.2-L235.0
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V. CONTRACTOR'S PERSONNEL
A. All tow truck driver personnel must possess the proper State of California Driver's License required to operate all vehicles and equipment required to be used in the performance of the contract.

Prior to engaging the services of any driver, Contractor shall provide to such driver copies of all applicable provisions of the Vehicle Code relating to vehicle towing and storage services and shall ascertain that such driver has read and understands said provisions. In addition, all tow truck driver personnel shall be thoroughly trained in the proper and safe use of all equipment used in doing the necessary work.

Contractor's business operations shall be conducted at all times in an orderly, ethical and courteous manner, and Contractor shall use its best efforts to secure and maintain the confidence of vehicle owners and operators.

All tow truck driver personnel shall wear uniforms which bear the name of the individual and the towing company in a conspicuous place on the uniform. The form of the patch shall be approved by the Chief of Police or his designee.

All tow truck driver personnel performing services for the City under this Agreement shall be photographed and subject to a fingerprint background check by the South Gate Police Department before commencing any work for the City. This includes present as well as future employees. The Chief of Police or his designee shall have the right to approve or disapprove of any driver who has a criminal record.

F. All tow truck driver personnel shall be fluent in the English language.

G. All tow truck driver personnel performing services for the City under this Agreement shall be subjected to random drug tests twice a year, conducted and paid for by Contractor. Contractor shall provide the drug test results to the City twice a year. The Chief of Police or his designee will have the right to approve or disapprove of any driver who tests positive for drugs.

Vl. MAINTENANCE OF RECORDS
Contractor shall maintain a file of all Form CHP 180 as received and transmitted by the Chief of Police or his designee. 5 4584565.2-L235.0
2/ 134
B, Contractor shall maintain a bound Log Book of calls received from the Police Department. The Log Book shall record the following:

Time of receipt of call.

Location of call.

License number, make and model of vehicle.

Date of release.

Person or firm to whom released.

Charges imposed.

The Chief of Police or his designee may inspect Contractor's records upon reasonable notice for the sole purpose of insuring compliance with this Agreement. Any issues will be forwarded to the City Manager or his designee for resolution. The City Manager or his designee may refer the matter for an administrative hearing if any party to the dispute so requests.

Vll. ROT ATING SCHEDULE FOR SERVICE CALL
If, and only if, the City enters into an agreement with additional towing and storage Contractor to provide Services (as defined Recital A of the Agreement), the City may adopt a written rotation schedule under such terms and conditions as determined by the Chief of Police or his designee and authorized by the City Manager or his designee. The rotation schedule shall be provided to all City towing and storage Contractors B. Each City rotation towing and storage Contractor shall receive police initiated requests for service assignments on an equal basis. To ensure equal opportunity for and use of each Contractor, the services of each will be used on a strict rotation basis, alternating among each Contractor on all police-initiated calls for service in the field, and all check points, street fairs, parades and other special events, and whenever tow services are otherwise required by the City. The Chief of Police or his designee will monitor the calls for service and use of each Contractor. Any dispute relating to the rotation schedule or the equality of assignments shall be referred to the Chief of Police or his designee, and then, if unresolved, to the City Manager or his designee. The City Manager or his designee may refer the matter for an administrative hearing if any party to the dispute so requests.

In the event that Contractor receives a service call from City/Police and then such call is cancelled by City/Police, then in that event, Contractor shall be immediately placed into the next call of the rotation schedule. 6 4584565.2-L235.0

2.1 135
D. In the event of a service call pursuant to Section 'l 05(b) of the Towing and Storage Franchise Agreement, these types of calls shall not be included in the service rotation schedule. Thus, a contractor responding to this type of service call shall not be penalized by losing a rotation call.

Vlll. COMPLIANCEWITHSTATELAW
A. Contractor shall comply with Sections 22523, 22524, 22669, 22670, 22671 and 22850 through 22856 of the Vehicle Code, which relate to the removal, storage and disposition of abandoned vehicles and liens of garage keepers.

B. Contractor shall keep fully informed of and comply with all City, County, State and Federal Laws, ordinances and/or regulations which are applicable to the Contractor and/or those engaged or employed by Contractor in doing the services to be provided by Contractor pursuant to this Agreement, including, but not limited to, the handling of vehicles, lien sales with outstanding parking penalties, owner notifications, removal, storage and disposition of abandoned vehicles, etc.

C. Contractor shall obtain and maintain all permits and licenses, pay all charges and fees, and give all notices required by City ordinances or other laws relating to the performance of this Agreement.

IX. DISCLAIMER OF LIABILITY
The City shall not be liable or responsible for the towing or storage of any vehicle unless such liability or responsibility has been acknowledged in writing by the Chief of Police or his designee, or unless such liability or responsibility is imposed by law.

X. ADVERTISING
Contractor shall not display or use any signs, advertising materials, logos, etc., which indicate that Contractor is an official towing service for the City of South Gate without the prior written authorization of the City Manager or Chief of Police or either of their designees.
7 4584565.2-L235.0
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Attachment C
Amendment No. l
to Contract No. 3396
AMENDMENT N0. 1 TO CONTRACT N0. 3396

FOR TOWING AND STORAGE SERVICES BETWEEN THE CITY OF SOUTH GATE AND MR. C's TOWING OF SOUTH GATE, INC.

This Amendment No. 1 to Contract No. 3396 for Towing and Storage Services ("Amendment No. 1"), is made and entered into on August 27, 2019, by and between the City of South Gate, a municipal corporation ("City"), and Mr, C's Towing of South Gate, Inc., a California corporation, ("Contractor"). City and Contractor are sometimes hereinafter individually referred to as a "Party" and collectively as "Parties." RECIT ALS:

WHEREAS, on November 28, 2017, the City Council approved Contract No. 3396 with Contractor ("Agreement") for towing and storage services, effective December 23, 2017 through and including December 31, 2019; and
WHEREAS, City and Contractor desire to execute Amendment No. 1 extending the term of the Agreement for an additional five (5) year term, through and including December 31, 2024, with an option to renew and extend the Agreement for a subsequent two (2) year term.

1. NOW, THEREFORE, the Parties hereby agree as follows:

MODIFICATION TO AGREEMENT.

EXTENSION OF TERM.

The term of the Agreement is hereby extended from December 31, 2019 through and including December 31, 2024. By written agreement of both Parties, this Amendment No. "l may be renewed and extended for a subsequent two (2) year period at the conclusion of the Agreement.

2. EFFECT OF AMENDMENT.

Except as expressly amended herein, all other terms and conditions of the Agreement shall remain in full force and effect. Without limiting the generality of the foregoing, the Agreement shall otherwise remain unchanged during the term of the Agreement as extended by Section 1. above. Furthermore, City reserves the right to augment or reduce the scope of work as City deems necessary.

3. EFFECaTn/E DATE.

The effective date of this Amendment No. 1 is August 27, 2019, and shall remain in effect through and including December 31 2024, unless extended or terminated otherwise in accordance with the terms of the Agreement. 2={ 137
Amendment No. l
to Contract No. 3396
IN WITNESS WHEREOF, the Parties hereto have caused this Amendment No. 'I to be executed and attested by their respective officers hereunto duly authorized.

ATTEST:

Carmen Avalos, City
(SEAL)
APPROVED AS T FORM:

By: - '
ul F. Salinas, City Attorney

CITY OF SO
Jorge , ffiyor
M ' TOWING OF SOUTH GATE, INC.:
2 138
Office of the
South Gate City Clerk
JUN - 5 202%
FILED Ciffl of South Gate
Item No. 8
2: '#) fV€ CITY COUNCIL
((2"E"j'TUL)A 'fE"i-JILLA
Department Director:

For the Re lar Meeting o'f: June 11, 2024
Dep ent: Public Works
o Cervantes Rob Houstori
SUBJECT: AMENDMENT N0. 1 TO CONTRACT N0. 2023-11-CC AND NOTICE OF

COMPLETION FOR THE CONSTRUCTION OF THE PHASE II OF THE FIRESTONE

BOULEV ARD REGIONAL CORRIDOR CAP ACITY ENHANCEMENT PROJECT, CITY PROJECT N0. 476-TRF, METRO CALL FOR PROJECTS ID NO. F3124 ("THE BOULEV ARD PROJECT")
PURPOSE: Construction of the Firestone Boulevard Regional Corridor Capacity Enhancements, Alameda Street to Annetta Avenue, Phase II, City Project No. 476-TRF ("The Boulevard Project") is complete and the retention payment to the contractor is due. Section 7107 of the Public Contract Code requires the City to accept completion of the Project and issue public notice of such, prior to releasing the retention payment. To approve Amendment No. 1 to Contract No. 2023-11-CC to fund additional construction management and inspection services that were needed to oversee construction completion.

RECOMMENDED ACTIONS: The City Council will consider:
a. Accepting completion of construction effective June 7, 2024, of The Boulevard Project, 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 Amendment No. 1 to Contract No. 2023-11-CC with FCG to fund additional construction management and inspection services that were required for The Boulevard Project, in an amount not-to-exceed $29,287; and
d. Authorizing the Mayor to execute Amendment No. 1 in a form acceptable to the City Attorney.

FISCAL IMPACT: There is no fiscal impact to the General Fund. Amendment No. 1 to Contract No. 2023-11-CC is in the amount of $29,287 and it will be funded with Measure R Local Return Funds, resulting in a revised contract amount of $237,330. The final construction contract amount is $3,227,401, and that is inclusive of the construction contract ($3,117,454), Change Order No. 1 ($312,000) and Change Order No. 2 (scope and cost deduction of $202,053). The Boulevard Project was funded with $4,120,318 in various funding sources, as summarized in Attachment "F." ANALYSIS: Construction of The Boulevard Project is complete, and staff is preparing to release the final payment to Sequel Contractors, Inc. Public Contract Code Section 7107 establishes that the 1 139
City must accept the completion of construction and issue a public notice of such prior to releasing the final payment on construction projects. The Notice of Completion ("NOC") meets this reqriirement. It provides written notice to concerned parties that all work on the project has been completed. The NOC initiates the 35-day period within wliich concerned parties may exercise their lien rights for the work they performed on The Boulevard Project. The City may use a part, or all, of the 5% retention payment to settle any liens exercised against the City. If no liens or claims have been filed within 35 days of the filing of the NOC, the City will release the retention and any remaining amounts due to the Contractor.

Contract No. 2023-10-CC required a 5% retention be held from construction invoice payments, which totaled $170,973 and released within 60 days of completion of the work. Construction will be completed on June 7, 2024; thus, the retention payment is due August 7, 2024. However, the Public Works Department plans to authorize release of 50% of the retention amorint after City Council approval of the NOC, and then release the balance on August 7, 2024. This is justified because SCE is taking longer than expected to schedule crews to energize a service pedestal that was installed on The Boulevard Project. SCE plans to energize it in July 2024. This creates a schedule extension that is beyond the contractor's control. Further, tlie schedule extension does not impact the status of work already completed by the contractor for which liens could be filed. Withholding 50% retention would suffice in meeting contract obligations.

On February 14, 2023, the City Council approved Contract No. 2023-11-CC with FCG Consultants, Inc. in the amount of $208,043 to provide the construction management and inspection services for the construction of The Boulevard Project, with a completion schedule of 180 working days. FCG provided additional services beyond the contracted amount due to a construction schedule extension of approximately two (2) months. The schedule extension was approved by the City to provide time to complete construction of lighting improvements, which were requested by the City through a change order. Amendment No. 1 provided funding to compensate FCG $29,287 for the additional construction management and inspection services. The revised FCG's contract amount including Amendment No. l is $237,330.

BACKGROUND: The Boulevard Project was a multi-year project that constructed congestion relief, safety and deferred maintenance improvements on Firestone Boulevard, Phase I was completed in 2019 and Phase II is now complete.

Phase II made improvements on Firestone Boulevard between Alameda Street and California Avenue, and between California Avenue and Annetta Avenue. Improvements included five bus shelters, two bus pull-outs, street lighting, sidewalk, curb and gutter repairs, pavement rehabilitation, traffic signal and street light modifications, ADA improvements, road widening, storm drain improvements, safety bollards at the student pickup/drop-off near South Gate Middle School, and removal of humps to resolve potential issues adjacent to South Gate High School and East Los Angeles Community College's satellite campus.

On February 14, 2023, the City Council approved Contract No. 2023-10-CC with Sequel Contractors, Inc. in the amount of $3,117,454 for the construction of The Boulevard Project. Construction began on July 7, 2023, and will be completed on June 7, 2024. The Contractor has met all the contract obligations. Work was performed in accordance with the approved specifications with acceptable quality and worlananship
2 140
Two change orders were administratively approved to complete construction, as follows:
* On November 29, 2023, Change Order No. I was administratively approved in the amount of $312,000. Improvements included sidewalk, curb ramps, driveways, and cross gutter improvements.
* On May 30, 2024, Change Order No. 2 was administratively approved to reduce the contract amount by $202,053 for work that was not needed to complete construction. This change order also reconciles the difference between the contract bid quantities and the actual quantity of work constructed in the field. It provides $107,361 to fund construction quantity increases, and a reduction of $309,415 for work that was not needed to complete constniction. The net contract reduction is $202,053.

The revised contract amount, inclusive of changes orders is $3,227,401.

The City Council may now accept the construction of the Project as complete, and the Notice of Completion can now be filed with the Los Angeles County Registrar Recorder's Office.

ATT ACHMENTS:

KT:lc
Notice of Completion
Change Order No. 2
Change Order No. I
Contract No. 2023-10-CC Sequel
Amendment No. I with FCG
Contract No. 2023-11-CC FCG
Location Map
Budget Summary
3 141
Attachment A

RECORDING REQUESTED BY

CITY OF SOUTH GATE
l AFTERRECORDINGMAILTO J

CITY CLERK OFFICE

CITY OF SOUTH GATE
8650 CALIFORNIA AVENUE
SOUTH GATE, CA 90280
L J

SPACE ABOVE THIS LINE FOR RECORDER'S USE

NOTICE OF COMPLETION
NOTICE is hereby given that:

I The undersigned is owner of the interest stated below in the property hereinafter described; 2 The NAME (including that of the undersigned), ADDRESS and NATURE OF TITLE of eveiy person owning any Interest in such property is as follows:

FULLNAME FULLADDRESS NATUREOFTITLE
City of South Gate 8650 Califomia Avenue In Fee
South Gate, CA 90280
3 The names and addresses of the transferors of the undersigned owner: (to be shown if the undersigned is a successor in interest of the owner who caused the improvement to be constructed, etc.) 4 A work of improvement on the property hereinafter described was COMPLETED ON June 7, 2024 5 The name of the CONTRACTOR, if any, for such work of improvement was Sequel Contractors, Inc., 13546 Imperial Highway, Santa Fe Springs, CA 90670
6 The property on which said work of improvement was completed is in the City of South Gate County of Los , State of California, and is described as follows:

THE PHASE II OF THE FIRESTONE BOULEVARD REGIONAL CORRIDOR CAPACITY ENHANCEMENT PROJECT, CITY PROJECT N0. 476-TRF, METRO CALL FORPROJECTS ID NO. F3124 ("THE BOULEV ARD PROJECT")
7 The street and address of said property is: 8620 California Ave, South Gate, CA 90280
Dated: June 11, 2024
8 Signature of
Owner or Owners Gil Hurtado, Mayor
City of South Gate
4 142
A Notary Public or other officer completing this
certificate verifies only the identity of the individual who signed the document to which this certiJXcate is
attached, atzd not the truthfulness, accuracy, or
v o that document.

ST ATE OF CALIFORNIA

COUNTY OF LOS ANGELES
SS
Subscribed and sworn to (or affirmed) before me on this day of 20, by , proved to me on the basis of satisfactory
evidence to be the person(s) who appeared before me.

Signature: Place Notary Seal Above
143
Attachment B
City of South Gate, Public Works Department
Contract Change Order

CENTENNIAL
- 7, IT-
Date: fflchangeomerwogaccounticontractxo.

Reason for Change: Balancing Bid Schedule Quantities for amount >1 25% and below <75% based on agreed adjusted unit cost. Contractor agreed to no increase or decrease in contract unit cost.

DescriptionofChange: lncludesallsavingsfrombiditemsinschedule-$(309,415); Construction quantity increases $107,361
Original Contract Amount
Total of previous authorized Change Orders
New Change Order Amount
New Contract Amount
$3,117,454.00
$312,000
$ (202,053.29)
$3,227,400.71
The Changes described above are hereby authorized.

Approved:

Kenneth Tang
Project Engineer
Mike Mahler
Contractor Sequel Contractors, Inc. Vice President
Luis Osuna
Deputy City Engineer- By Authorized Agent
Rob Houston
City Manager
Original - Project File
CC: - Contractor
- Department
Fabian Aoun, P.E.

Resident Engineer
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Attachment C
City of South Gate, Public Works Department
Contract Change Order
Date: 11/29/2023 ChangeOrderNo 001 Account/Contract No.

Contractor: Sequel Contractors, Inc. Account Code
Contract Date: 2/14/2023 Account Code
Plan Reference: The Firestone Boulevard Project, Phase II, City Project No. 476-TRF (ENTENNIAI
2023-10-CC
311-790-31-9447
ChangeOrderAmount: $ 312,000.43 ExtensionofContract,ifwarranted Oworkingdays Reason for Change: To fund additional improvements and to delete unnecessary contract work.

Description of Change: Installed construction proJect signs ($4,942): Installing In-ground uplighting ($287,272).

Line stops for the water shut down ($66,434); Junction structure at Victoria Avenue ($20,000); Electrical conduits ($1 9,980); removing unnecessary monument sign, tree planting, and traffic camera (-$86,628).

OriginalContractAmount $3,117,454.00
Total of previous authorized Change Orders $0
NewChangeOrderAmount $ 312,000.43
NewContractAmount $3,429,454.43
The Changes described above are hereby authorized.

Approved: November 29, g023
dneth T'ang //
Luis Osuna
[)epu City ngineer
Chris Jeffers
City Manager
Original - Project File
CC: - Contractor
- Department
Mike Mahler
Contractor Sequel Contractors, Inc. Vice President
By Authorlzed Agent
Fabian Aoun. PE
Construction Manager
147
I b' O U 7 #
City of South Gate, Public Works Department
Change Order Breakdown
4,
Date:

Contractor:

Contract Date:

Plan Reference:
11/29/2023 ChangeOrderNo O01
Sequel Contractors. Inc.
:nurpoza
The Firestone Boulevard Pro}ecl Phase II, City Project No. 476-TRF AccounUConlract No.

Account Code
Account Code
2023-10-CC
311-790-31-9447
ItemNo. II Description Il-:'=""'- Quantity II Unit 3nit Pdce Total Base Bid St.hed le A - Firestone Boulevard (Alameda St to California Ave) SS-1 PROJECT SIGNS o 1 EA $ 2,471.06 $2,471 .06
SS-2 INSTALL WATER LINE STOPS AND GATE VALVE o 1 LS $ 66,434.02 $66.434.02 SS-3 JUNCTION STRUCTURE AT VICTORIA STORM DRAIN o 1 EA $ 20,000.00 $20,000.00 SS-4 INSTALL IN-GROUND uPLIGHTlNG o 1 LS $143,636.02 $143,636.02 16 INSTALL 24" BOX SIZE TREE IN PARKWAY o -14 EA $ 1,800.00 -$25,200.00 17 FURNISH AND INSTALL CITY MONUMENT SIGN o -1 EA $ 55,000.00 -$55,(100.00 30 INSTALL 2" PVC CONDLIIT FOR STREET LIGHTING 0 ilO LF $ 60.00 $6,600.00 Base Bid Sched Is B - Firestone Boulevard (California Ave to Atlantic Ave) SS-5 PROJECT SIGNS o 1 EA $ 2,471.06 $2,471.06
SS-6 REPLACE CONDUIT CROSSING AT CALIFORNIA AVE o 1 LS $ 13,380.43 $13,380.43 SS-7 INSTALL AND TURNOVER 24" TREE o 1 LS $ 15.071.84 $15,071.84 SS-8 INSTALL IN-GROUND LIPLIGHTING o 1 LS $143,636.02 $143,636.02 70 REMOVE EXISTING AND CONSTRLICT 8" PCC BUS PAD o -1 ,800 SF $ 35.00 -$03,000.00 70 REMOVE EXISTING AND CONSTRlJCT 8" PCC BLIS PAD o 1 ,840 SF $ 35.00 $64,400.00 80 INST ALL 24' BOX SIZE TREE IN PARKWAY o -7 EA $ 1,800.00 -$12,600.00 81 INSTALL 24" BOX SIZE TREE IN MEDIAN o -1 EA $ 1,800.00 -$1 ,soo.oo 91 TRAFFIC SIGN MODIFICATION o -i LS $170,000.00 -$170,000.00 9i TRAFFIC SIGN M(X)IFICATION (OELETE IP CAMERA) o 1 LS $161,500.00 $181,500.00 $312,000.43
Time Extension Total Change Order Amount $:412,000.43 148
Contract No. 2023-10-CC
Attachment D
AGREEMENT WITH SEQUEL CONTRACTORS, INC. AND THE CITY OF SOUTH

GATE FOR THE PHASE II OF THE FIRESTONE BOULEVARD REGIONAL CORRIDOR CAPACITY ENHANCEMENT PROJECT, CITY PROJECT N0. 476-TRF, METRO CALL FOR PROJECTS ID NO. F3124 (THE BOULF,YARD PROJECT) This Agreement for The Firestone Boulevard Regional Corridor (,apacity Enhancements, Alameda Street to Annetta Avenue, Phase II, City Project No. 476-TRF (The Boulevard Project) ("Agreement"), is made and entered into on February 14, 2023, by and between the City of South Gate, a municipal corporation ("City"), and Sequel Contractors, Inc., a California corporation, License No. C1677728 ("Contractor"). City and Contractor are sometimes hereinafter individually referred to as a "Party" and collectively referred to as "Parties." The City and the Contractor hereto mutually agree as follows:

ARTICLE I

THE PROJECT
For and in consideration of the mutual promises set forth herein, Contractor agrees with City to perform and complete in good and workmanlike manner all work required by the Contract Documents for City Contract No.2023-10-CC, which involves The Boulevard Project, Phase II, City Project No. 476-TRF.

Said work shall be performed in accordance with the Plans, Specifications, and other Contract Documents, all of which are referenced in Article III hereof and incorporated herein as though fully set forth. Contractor shall furnish at its own expense all labor, materials, equipment and senrices necessary therefore, except such labor, materials, equipment and services as are specified in the Contract Documents to be furnished by City.

ARTICLE n

CONTRACT SUM AND PAYMENT
For performing and completing the work in accordance with the Contract Documents, City shall pay Contractor, in full compensation therefore, the contract sum of Three Million One Hundred Seventeen Thousand Four Hundred Fifty-Four Dollars ($3,117,454) set forth in the Bid Schedule(s) that are included among the Contract Documents. Said sum shall constitute payment in full for all work performed hereunder, including, without limitation, all labor, materials, equipment, tools and services used or incorporated in the work, supervision, administration, overhead, expenses and any and all other things required, furnished or incurred for completion of the work as specified in the Contract Documents. City shall make payments to Contractor ori account of the contract sum at the time, in the manner, and upon the conditions specified in the Contract Documents.
l
149

ARTICLE DI

CONTRACT DOCUMENTS
The Contract Documents, which constitute the entire Agreement between the City and the Contractor, are enumerated as follows: the Notice Inviting Bids, the Instructions to Bidders, the Accepted Proposal, the Bid Schedule(s), the List of Subcontractors, Contractor's Industrial Safety Record, the Contractors Qualification Statement, the Bid Security Forms for Check or Bond, this Agreement, the Worker's Compensation Insurance Certificate, the Performance Bond, the Payment Bond, the Non-Collusion Affidavit, the Specifications, and Special Provisions and all addenda as prepared prior to the date of bid opening setting forth any modifications or interpretations of any of said documents, and any and all supplemental agreements heretofore or herewith executed amending or extending the work contemplated and which may be required to complete the work in a substantial and acceptable manner, all of which are referred to as the Contract Documents. These form the entire "Contract", and all are as fiilly a part of the Contract as if attached to this Agreement or repeated herein.

ARTICLF, IV

INDEMNIFICATION
The Contractor shall indemnify, hold harmless and defend (with counsel selected by the City), the City of South Gate and its affiliated entities, its officers, employees, consultants and sub- consultants, their respective officers, agents, employees (collectively the "Indemnified Parties"), from any and all claims and losses whatsoever occurring or resulting to any and all persons, fimis, or corporations furnishing or supplying work, services, materials, or supplies in connection with the performance of this Agreement, any and all claims, lawsuits or actions arising from the awarding or execution of this Agreement, and firom any and all claims and losses occiuring or resulting to any person, firm, corporation or property for damage, injury, death arising out of or connected with the Contractor's obligation to indemnify, defend and save harmless the "Indemnified Parties" as stated hereinabove including, but not be limited to, paying all legal fees and costs incurred in connection with any such claims, losses, lawsuits or actions. THIS

PROVISION SHALL SURVIVE THE COMPLETION OF WORK AND SERWCES TO BE

PROVIDED UNDER THIS AGREEMENT AND THE OTHER CONTRACT DOCUMENTS

ARTICLE V

COMMENCEMENT, COMPLETION AND LIQUIDATED DAMAGES
Contractor shall commence work on a date to be specified in a written Notice to Proceed from the City's Director of Public Works, and shall complete all work within ninety (90) calendar days thereafter (subject to "force majeure" delays, if any, to the extent allowed under the Contract Documents). If the work is not completed within that time, Contractor shall owe and pay to the City liquidated damages in the amount or amounts set forth in the Contract Documents. 2 150

ARTICLE VI

EFFECTIVE DATE
This Agreement shall become effective and commence on February 14, 2023.

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed and attested by their respective officers thereunto duly authorized.

CITY OF SOUTH GATE:

Maria del Pilar Avalos, Mayor
ATTEST:

B7:

Bay': la
,,iRaul F. Salinas, City Attorney
SEQ
1 Tho . Pack, President
Dated: 2/22/23
3 13 151
CALIPOFlNjA ALL-PuFlPOSFE ACKNOWLFDaMtNT CML CODE § 1189 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of California
n 2,h4,,' before me, nanmf BlJ8taJTtanJ NOfar)/ Ptl5aC
Date Here Insert Name and Title of the Officer
Name(s) of Signer(s)
who proved to me on the basis of satisfactory evidence to be the personl whose name(s) is/aae subscribed to the within instrument and acknowledged to me that he//t executed the same in his authorized capacity(i0, and that by his/J;mr/$*signature@ on the instrument the person(s), or the entity upon behalf of which the person(4 acted, executed the instrument.

I certify under PENALTY' OF PERJURY under the laws of the State of California that the foregoing paragraph H+HHOOH++*+H*mHHOHOH H *H H!
: ('! My Comm. I xpircs M/IRCH 1, 2025 i
is true and correct.

WITNESS my hand and official seal.

Signature of Notary Public
Place Notary Sea/ Above

OPTIONAL
Though this section is optional, completjng this information can deter alteration of the document or .fraudulent reattachment of this form to an unintended document.

Description of Attached Document
Title or Type of Document:

Document Date:

Signer(s) Other Than Named Above:

Capacity(ies) C!aimed by Signer(s)
Signer's Name:
€ Corporate Officer - ntle(s):
€ Partner - € Limited € General
€ Individual € Attorney in Fact
[1] Trustee € Guardian or Conservator
€ Other:

Signer Is Representinga
Number of Pages:

Signer's Name:
€ Corporate Officer - Title(s):
€ Partner - € Limited € General
€ Individual [] Attorney in Fact
0 Trustee [1] Guardian or Conservator
[] Other:

Signer Is Representing:
@2016NationalNotaryAssociationawww.NationalNotary.orgol-800-USNOTARY(1-800-876-6827) ltem#5907 /4- 152
WHEREAS, the 'Bo4 6f Diredors deems it adviaable to,.miihorize the efflcem of the Corporatiofi, Ajx,l.

Magallanes, 'Thoma@ S. Pack p4 Mic:k'4. Mahler, zspectivery, to epcgte :bid 'bonds on behalf of 'die RESOLW,D FURTHER, that Abel Maga41@ne7.,'.Thomas S. Pack qa Michael.4. Mahler ue, aufliorto execute person,'companyor@unicipality;
RESOL; FURTHER, that Abel Magallaneg, Thomq S. ffiack and Midiael A. Mamir q, 'audiorized and directed to execute and deliver stzt impmy@m@t oontr and re:lated agepts with arry agent, pemon, comp@ny ormuniipality on suchtqrms ;nditiqnffi.asiey deem advisQle in'dieir.sole discretjon; RESOLVED FURTHER, th@t Abel allanes, 'iomas S. Padc and A&bael A. Qahler '.be, and they I;e;mby apa adiorized bytheirsole signs mu py doentto bind'this corpomtion'to.contmd, bids, bonds, We.' sumorized mid ;d.ip to mke aqy 4 all 81lQ!11 over :,a;tions and em'ute spqh qthpi doapents ash may be necessa7 orappmpriateto o:iepurpqgs nj$p fn=@jnz qmhnriitinm Dmed: 2021
Diremr &)President
Abel
Direqtor, Vice 'Presidqt'& Aasistant'Secreta7
A. Mahler
.Diredor & SemLsty
153

WORKER'S COMPENSATION INSURANCE CERTIFICATE
The Contractor shall execute the following form as required by the California Labor Code, Sections 1860 AND 1861.

I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that Code, and I will comply with such provisions before commencing the performance of the work of this Contract.

DATED, 2/22/23
Contractor
. Pack
President
Title
Michael A. Mahler, Secretary
Title
154

INDEMNIFICATION AND LIABILITY INSURANCE REQUIREMENTS The following requirements must be met when submitting insurance certificates to the City of South Gate in connection with Public Works and other projects:

1. The insurance certificate must be issued to the City of South Gate, 8650 California Avenue, South Gate, CA 90280, attention of the City Engineer.

2. The City of South Gate, South Gate Housing Authority, and their officers, employees, elected officials, and agents must be shown as additional insured per ISO CG 20 101185, and separate endorsementsigned by an authorized representative ofthe insurance company is required.

3. The City has the right to request a copy of complet<: insurance policy including all endorsements and certificates.

4. The Certificate must include cross liability coverage General Liability coverage, and so indicate on the face o or by separate endorsement.
included in the Commercial
Certificate underthat heading

5. 6.

The Certificate should also indicate that the insurance covers "All Operations" or should specify the particular services to be provided.

Contractor shall procure and maintain for the duration of the Contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the , his agents, representatives, employees or subcontractors.

Minimum Scope of Insurance
Coverage shall be at least as broad as:

1. Insurance Services Office Commercial General Liability coverage (occurrence firom CG 0001).

2. Insurance Services Office form number CA 0001,(Ed. 1/87) covering Automobile Liability, code l (any auto).

3. Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance.

4. Course of Construction insurance covering for "all risks" of loss. Earthquake and flood insurance is not required to be furnished by the Contractor. 5 155
Contractor shall maintain limits no less than:

1. 2.

General Liability: $1,000,000 per occurrence for'bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the gerieral aggregate limit shall apply separately to the project which is the subject of this Agreement and the location where work thereunder is to be performed, or the general aggregate limit shall be twice the required occurrence limit.

Automobile Liability: $1,000,000 per accident for bodily injury and property damage.

3. Employer's Liability: $1,000,000 per accident far bodily injury or disease.

4. Course of Construction: Completed value of the project that is the subject of this Agreement.

Deductibles and Self-Insured Retention
The general liability and automobile policies are to contain, or be endorsed to contain, the following provisions:

1. The City, its officers, officials, employees, and volunteers are to be covered as insurers with respect to liability arising out of aut6mobiles owned, leased, hired or borrowed by or on behalf of the Contractor; and 8ith respect to liability arising out of work or operations performed by or on behalf of the Contractor including materials, parts or equipmentfurnished in connection with such work oroperations.

General liability coverage can be provided in the form of an endorsement to the Contractor's insurance or as a separate owner's policy.

2. For any claims related to the project that is the subject of this Agreement, the Contractor's insurance coverage shall be primary insurance as respects the City, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Contractor's insurance and shall not contribute with it.

3. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be canceled, or modified, by either party, except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to the City. 6 156
Course of construction policies shall contain the following provisions:

1. The City shall be named as loss payee.

2. The insurer shall waive all rights of subrogation against the City.

Acceptability of Insurers
Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII.

Verification of Coverage
Contractor shall furnish the City with original certificates and amendatory endorsements effecting coverage required by this clause. The endorserr:ents should be on forms provided by the City or on other than the City's forms, provide4 those endorsements or policies confotm to the requirements. All certificates and endorsements are to be received and approved by the City before work commences. The 6ity reserves the right to require complete, certified copies of all required insurance licies, including endorsements affecting the coverage required by these specifications any time.

Subcontractors
Contractor shall include all subcontractors as insurers under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverage for subcontractors shall be subject to all of the requirements stated herein.

Indemnification
The Contractor shall indemnify, hold harmless and defend (with counsel selected by the City of South Gate), the City of South Gate, the City of South Gate Housing Authority, their consultants and sub-consultants, and their respective office. rs, agents, and employees, from any and all claims and losses whatsoever occurring or resuljing to any and all persons, firms, corporations or other entities furnishing or supplying word, services, materials, or supplies in connection with the performance of this Agreement, any and all claims, lawsuits or actions arising from the awarding or execution of this Agreement, and from any and all claims and losses occurring or resulting to any person, fiffi, corporation or other entity, or property for damage, injury, death arising out of or connected with the Contractor's obligation to indemnify, defend and save harmless the Citj of South Gate, the City of South Gate Housing Authority, their consultants, sub-consultantffi, and other parties listed above, as stated hereinabove shall include, but not be limited to', paying all legal fees and costs incurred by legal counsel of the City of South Gate's ctioice in representing the City of South Gate, the City of South Gate Housing Authority, consultants and sub-consultants in connection with any such claims, losses, lawsuits or actions. THIS PROVISION SHALL

SURVIVE THE COMPLETION OF WORK AND SERVICES TO BE PROVIDED

UNDER THIS AGREEMENT
7 157

SOUTH GATE FIRESTONE BOULEVARD REGIONAL CORRIDOR CAPACITY

ENHANCEMENT PROJECT, PHASE II PROJECT
CITY PROJECT N0. 476-TRF

FAITHFUL PERFORMANCE BOND
100% OF CONTRACT ALMOUNT Bond No. 107696767
KNOW ALL MEN BY THESE PRESENTS:

WHEREAS, the City of South Gate ("City" herein) has awarded to Sequel Contractors, hic., California corporate number C1677728 ("Contractor" herein) a contract for:

THE FIRESTONE BOULEVARD REGIONAL UORRIIuOR CAPACITY

ENHANCF,MENTS, ALAMEDA STREET TO ANNETTA AVENUE, PHASE II, CITY PROJECT N0. 476-TRF (THE BOULEVARD PROJECT); and
WHEREAS, said Contract is incorporated herein by this reference; and j
WHEREAS, said Contractor is requiredunder the temis of said Contract to furnish a bond for the faithful performance of said Contract;
Travelers Caspalty and Surety
NOW,THEREFORE,we,Contractorand . CompanyofAmerica asSurety, are held and firmly bound unto the City in the penal sum of Three Million One Hundred Seventeen Thousand Four Hundred Fifty-Four Dollars ($3,117,454) lawful money of the United States, for the payment of which we bind ourselves, our heirs, successors, executors and administrators, jointly and severally, firmly by these presents.

The condition of this obligation is such that the obligation shall become null and void if the above-bounded Contractor, his or its heirs, executors, aistrators, successors, or assigns, shall in all things stand to, abide by, well and tnuly keep and perform the covenants, conditions and provisions in said Contract and any alteration thereof made as therein provided, on his or their part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their tnue intent and meaning, and shall indemnify and save hamiless the City, its officers, agents and employees, as therein stipulated; otherwise, this obligation shall be andremain in fiill force and effect.

As a part of the obligation secured hereby, and in addition to the face amount specified, costs and reasonable expenses and fees shall be included, including reasonable attorneys' fees, incurred by the City in successfully enforcing the obligation, all to be taxed as costs and included in any judgment rendered.

The Surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract, the work to be performed thereunder, or the specifications that accompany the Contract shall in any manner affect its obligations on this bond. The Surety hereby waives notice of any such change, extension of time, altetation or addition to the terms of the Contract, the work, or the specifications.
8 2o 158
Note: All signatures must be acknowledged before a notary public. Attach appropriate acknowledgment.

OVED AS TO FORM:

F. Salinas, City Attorney

CONTRACTOR
SEQTTF,T, ('0
By:

Title:
i
i
13546 Imperiai Hiqhway
I
i
Santa Fe ' CA 90870
(Type of Contractor)
Travelers
(Type name'of Surety)
21688 Gateway Center Drive
I
I
Diamond Bar 6A 91765
(Type of Surety)
Douglas A. Rapp
Attomey in Fact
of America
(Title of officer)
I
9 159
CALIFOFINIA ALL-PUFIPOS € ACKNOWLEtXaMENT CIVIL CODE § 1189 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuraqy, or validity of that document.

State of California
Date
personally appeared
before me,
Here Insert Narr e and Title of the Officer
Name(s) of Signer(s)
who proved to me on the basis of satisfactory evidence to be the personl whose name% is/aae subscribed to the within instrument and acknowledged to me that re/$*d' executed the same in his authorized capacity(tea), and that by his/t);:signature@ on the instrument the person(s), or the entity upon behalf of which the persong acted, executed the irstrument.

He * * *H* * H H* * * H 40 * +H * * * H * H H H* m g :. . ! COMM. #2349514
7,'; ': NOTARY PUBLIC - CALIFORNIA Q

LOS ANGELES COUNTY
!***H'*:H *+*:!*':::;(::'*:P)0::;:C*';!::2*i
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand official seal.

Signature gM
of Notary Public
Place Notary Seal Above
- OPTIONAL
Though this section is optional, completing this information can .fraudulent reattachment of this form to an aitenc Description of Attached Document
Title or Type of Document:

Document Date:

Signer(s) Other Than Named Above:

I
' alteration of the document or
document.

Number of Pages:

Capacity(ies) Claimed by Signer(s)
Signer's Name:
€ Corporate Officer - Title(s'):
€ Partner - € Limited € General
[3 Individual [] Atteirney in Fact
€ Trustee € Guardian or Conservator
€ Other:

Signer Is Representinga
Signer's Name:
[ Corporate Officer - Title(s):
u- Partner - € Limited € General
[J Individual ' [1] Attorney in Fact
€ Trustee i € Guardian or Conservator
€ Other: I
Signer Is Representing:
, ,t3,y,, , ,,, , , , , ';'l'*''l;"':N'<:V..:j';"+:@Yl."J+'!::4.i:14:"!!!:)!K.' , @2016 National N-otary Association o www.NationalNotary.org a 1-800-US NO'T'ARY (1-800-876-6827) Item #5907

22. 160

ACKNOWLEDGMENT
A notary public or other officer completing this
certificate verifies only the identity of the individual who signed the document to which this certifi>te is attached, and not the truthfulness, accuracy, or
of that document.

State of California
County of Orange
On February 22, 2023 before me, Debra Swanson, Notary Public (insert name and title of the officer)
personally appeared Douglas A. Rapp
who proved to me on the basis of satisfactory evidence to be tile person(*) whose named) is/am subscribed to the within instrument and acknowledged to mv LlieiL liv/ahaAkay c><acutcd thc same in his authorized capacity@as), and that by his signature0) on the instrument the perso$), or the entity upon behalf of which the perso$) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of Califomia that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.
(seal)
" 5 C6fM;Th":ii56:30 ;O
NOTARYPuBLICOCALIFORNlA?
161
4Qk

TRAVELERSJ
Travelers Casualty and Surety Company of America
Travelers Casualty and Surety Company
St. Paul Fire and Marine Insurance Company

POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS: That Travelers Casualty and Surety Company of America, Travelers Casualty and Surety Company, and St.

Paul Fire and Marine Insurance Company are corporations duly organized under the laws,of the State of Connecticut (herein collectivety called the "Companies'), and that the Companies do hereby make, constitute and appoint Douglas A Rapp of LADERA RANCH California , their true and lawful Attomey-in-Fact to sign, execute, seal and acknowledge any and all BANDS, recognlzances,' ficodnedlity'f'onoaflpuenrdseo'ns,ak'nggusaraanntdeeoin'hgerthW;fpineg:ormoba"ngCea'o'Of crnon\hraectnsaa'nrde efxheecreuo!ifngon0r bgeuhaaralfntoefOin'hgebOCnodmSpaanndi'unidnertfhaek:rngbsusreinQeusirsedofor:uearrmanittke;dinign athn; actions or provedings allowed by law.

IN WITNESS WHEREOF, the Companies have caused this instniment to be signed, and their corporate seals to be hereto affixed, this 17th day of January, 2019.

State of Connecticut
City of Harkford ss.
!{xi
BY:

Robert L. RaneeniorVlce President
On this the 17th day of January, 2019, before me personally appeared Robert L. Raney, who acknowledged himself to be the Senior Vice President of Travelers Casualty and Surety Company of America, Travelers Casuatty and Surety Company, and St. Paul Fire and Marine Insuran> Company, and that he, as such, being authorized so to do, executed the foregoing instrument for the purposes therein contained by signing on behatf of said Companies by himself as a duly authorized officer.

IN WITNESS WHEREOF, I hsreunto set my hand and official seal.

My Commission expires the 30th day of June, 2021
Anna P. Nowik, Notary Public
This Power of Attorney is granted under and by the authority of the following resolutions adopted by the Boards of Directors of Travelers Casualty and Surety Company of Ameri>, Travelers Casualty and Surety Company, and St. Paul Fire and Marine Insurance Company, which resolutions are now in full force and effect, reading as follows:

RESOLVED, that the Chairman, the President, any Vice Chairman, any Executive Vice Pres,ident, any Senior Vice President, any Vice President, any Second Vim President, the Treasurer, any Assistant Treasurer, the Corporate Secretary or any Assistant Secretary may appoint Attomeys-in-Fact and Agents to act for and on behalf of the Company and may give such appointee such authority as his or her oertificate of authority may prescribe to sign with the Company's name and seal with the Company's seal bonds, recognizances, contracts §f indemnity, and other wrltlngs obligatory in the nature of a bond, recognizance, or conditional undertaking, and any of said officers or the Board of Directors at any time may remove any such appointee and revoke the power given him or her; and it is
FLIRTHER RESOLVED, that the Chalmian, the President, any Vice Chairman, any Executive Vice President, any Senior Vice President or any Vice President may delegate all or any part of the foregoing authority to one or more officers br employees of this Company, provided that each such delegation is In writing and a copy thereof is filed in the office of the Secretary; and it is ' FURTHER RESOLVED, that any bond, reoognlzance, contract of indemnity, or writing obligatory in the nature of a bond, recognlzance, or conditional undertaking shall be valid and binding upon the Company when (a) signed by the President, any Vi> Chairman, any Executive Vice President, any Senior Vice President or any Vice President, any Second Vice President, the Treasurer, any Assistant Treasurer, the Corporate Secretary or any Assistant Secretary and duly attested and sealed with the Company's seal by a Secretary ;r Assistant Secretary; or (b) duly executed (under seal, if required) by one or more At}omeys-in-Fact and Agents pursuant to the power prescribed in his or her certificate or their oertificates of authority or by one or more Company officers pursuant to a written delegation of authority; and it is FURTHER RESOLVED, that the signature of each of the following officers: President, any Executive Vice President, any Senior Vice President, any Vice President, any Assistant Vice President, any Secretary, any Assistant Secretary, and the seal 4f the Company may be affixed by facsimile to any Power of Attomey or to any certificate relating thereto appointing Resident Vice Presidents, Resident Assistant Secretaries or Attorneys-in-Fact for purposes only of executing and attesting bonds and undertakings and other writings obligatory in the nature ttu'reof, and any such Power of Attorney or certificate bearing such facsimile signature or facsimile seal shall be valid and binding upon the Company and any such power so executed and csrtified by such facsimile signature and facsimile seal shall be valid and binding on the Company in the future with respect to any bond or understanding to which it is attached.

I, Kevin E. Hughes, the undersigned, Assistant Secretary of Travelers Casualty and Sure'y Company of America, Travelers Casualty and Surety Company, and St. Paul Fire and Marine Insurance Company, do hereby oertify that the above and foregoing is a true and correct copy of the Power of Attorney executed by said Compar3ies., which remains in full force and effect.

Z"ne.hu'kretary
To verifyUieauthenbcityofThisPowerofAttemeB phsasc ml/usatl-800-421-3880.

Please refer tn thp phnys-nsmsdArhnue)-;is ray[ audUie deliils oftlie Liuudlu viiliicb 74;irasstarafAmvnay /aa sttprh# 24162

SOUTH GATE FIRESTONE BOULEVARD REGIONAL UORRII)OR CAPACITY ENHANCEMENT PROJECT, PHASE n PROJECT
CITY PROJECT N0. 476-TRF
Bond No. 107696767
100% PAYMENT BOND
WHEREAS, the City of South Gate, South Gate, Califomia ("City" herein), has awarded to Sequel Contractors, hic., ("Contractor" herein) a Contract for the work described as follows:

THE FIRESTONE BOULEVARD REGIONAL CORRIDOR CAPACITY

ENHANCEMENTS, ALAMEDA STREET TO ANNETTA AVENUE, PHASE II, CITY PROJECT N0. 476-TRF (THE BOULEVARD PROJECT)
WHEREAS, saidContractoris requiredto furnish abondin connectionwithsaidContract, to secure the payment of claims of laborers, mechanics, material suppliers and other persons, as provided by law;
NOW, THEREFORE, we, the undersigned Contractor and Surety, are held firmly bound unto the City in the sum of Three Million One Hundred Seventeen Thousand Four Hundred Fifty-Four ($3,117,454) for which payment well and tnuly to pe made we bind ourselves, our heirs, executors and administrators, successors and assigns, jointly and severally, firmly by these presents.

THE CONDITION OF THIS OBLIGATION IS SUCH THAT, if said Contractor, its heirs, executors, administrators, successors, assigns, or subcontractors shall fail to pay any of the persons named in Civil Code Section 9100(a), or amounts due under the Unemployment Insurance Code with respect to work or labor performed under the Contract, or any amounts required to be deducted, withheld, and paid over to the Employment Development Department from the wages of employees of the Contractor and its subcontractors pursuant to Section 13020 of the Unemployment hisurance Code, with respect to such work and labor, then the Surety herein will pay for the same in an amount not exceeding the sum specified in this bond, otherwise the above obligation shall be void. If suit is brought upon this bond, the said Surety will pay a reasonable attorney's fee to the plaintiff(s) and the City in an amount to be fixed by the court.

This bond shall inure to the benefit of any of the persons named in Civil Code Section 9100(a) as to give a right of action to such persons or their assigns in any suit brought upon this bond.

Said Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration or modification of the Contract Documents or the workto be performed thereunder shall in any way affect its obligations onthis bond, and it does hereby waive notice of such change, extension oftime, alteration or modification ofthe Contract Documents or of work to be perfomed thereunder.
n!J WITNESS WHEREOF, this instrument has been duly executed by the above-named Contractor and Surety on February 22 , 2023.
10 2'; 163
Note: All signatures must be acknowledged before a notary public. Attach appropriate acknowledgment.

CONTRA

SEQUF,L
Thomas S. Pack
Title: President
13546 Imperial Hiqhway
Santa Fe Sprinqs, CA 90670
(Type addre'ss of Contractor)
Travelers Casualty and Surety Company of America
(Type nameof Surety)
21688 Gateway Center Drive
Diamond Bar. CA 91765
(Type address of Surety)
11 164
CALIFORNjA ALL-PUFIPOSE ACKNOWlEtXaMENT CML CODE § il89 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of California
County of L A,l,(
On 2[z4>-;
Date
personally appeared
before me, Dualaiiia!v, Nt.tUQ PlJ
Here Insert Name and Title of the Officer
Name(s) of Signer(s)
who proved to me on the basis of satisfactory evidence to be the person@j whose name(s') is/a subscribed to the within instrument and acknowledged to me that 3 e/t!l executed the same in his authorized capacity(team, and that by his/J;tar/tsignature0 on the instrument the person(s or the entity upon behalf of which the person(s0 acted, executed the ir7strument.

I certify under PENALTf OF PERJURY under the laws of the State of Califiornia that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature F)A 2
Signature of Notary Public
I * H 0$ HmHH* 44 H+** OH+*HHH Hm m
-"' NOTARYPUBLIC.CALIFORNIA1(
iHH+ *;'*-i *"*H:*'*?::"::';:'I: :o;S;:';'* :!g::j
Place Notary Seal Above
- OPTIONAL
Though this section is optional, completing this information can deter alteration of the document or .fraudulent reattachment of this form to an unintended document.

Description of Attached Document
Title or Type of Document:

Document Date:

Signer(s) Other Than Named Above:

Capacity(ies) Claimed by Signer(s)
Signer's Name:
€ Corporate Officer - Title(s'):
€ Partner - € Limited [1 General
€ Individual € Attorney in Fact
€ Trustee [1 Guardian or Conservator
[1 0ther:

Signer Is Representinga
Number of Pages:

Signer's Name:
[ Corporate Officer - Title(s):
[] Partner - € Limited € General
€ Individual [ Attorney in Fact
€ Trustee [1] Guardian or Conservator
il Other:

Signer Is Representing:

Item #5907
27 165

ACKNOWLEDGMENT
A notary public or other officer completing this
certificate verifies only the identity of the Individual who signed the document to which this cerufimte is attached, and not the truthfulness, accuracy, or
of that document.

State of California
County of Oranqe
On FebruarV 22i 2023 before me, Debra Swanson, Notary Public (insert name and title of the officer)
personally appeared Douglas A. Rapp
who proved to me on the basis of satisfactory evidence to be the person(*) whose named) isme subscribed to the within instrument and acknowledged to me that he/e executed the same in hisauthorized capacity@as), andthatbyhisslgnature0)onthe instrumentthe perso$), or the entity upon behalf of which the perso$) acted, executed the instrument.

I certify under PENALTY OF PERJLIRY under the laws of the State of Califomia that the foregoing paragraph is true and corred.

WITNESS my hand arid official seal. '% OEBRASWANSON N COMM. # 2335630 ;O
sorm puac.mom ;O
@; ORANGECOUNTY ",
MYCOMM, UP, NOVIO, 2024
.d 166
ah

TRAVELERSJ
Travelers Casualty and Surety Company of America
Travelers Casualty and Surety Company
St. Paul Fire and Marine Insurance Company

POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRE8ENT8: That Travelers Casualty and Surety Company of America, Travelers Casualty and Surety Company, and St.

Paul Fire and Marine Insurance Company are corporations duly organized under the laws o7 the State of Connecticut (herein collectively called the 'Companies"), and that the Companies do hereby make, constitute and appoint Douglas A Rapp of LADERA RANCH California , their true and lawful Attorney-in-Fact to sign, execute, seal, and acknowledge any and all bonds, recognlzances,' conditional undertakings and other writlngs obligatory in the nature thereof on behalf of the Companies in their business of guaranteeing the fidelity of persons, guaranteeing the performance of contracts and executing or guaranteeing bonds and undertakings required or permitted in any actions or proceedings allowed by law.

IN WFTNESS WHEREOF, the Companies have >used this instniment to be signed, and their corporate seals to be hersto affixed, this 17th day of January, 2(H9.

State of Connecticut
City of Hamord ss.

BY:
'!Vice President
On this the 17th day of January, 2019, before me personally appeared Robert L. Raney, who acknowledged himself to be the Senior Vice President of Travelers Casualty and Surety Company of America, Travelers Casualty and Surety Company, and St. Paul Fire and Marine Insurance Company, and that he, as such, being authorized so to do, executed the foregoing instrument for the purposes therein contained by signing on behatf of said Companies by himself as a duly authorized officer.

IN WITNESS WHEREOF, I hereunto set my hand and official seal.

My Commission expires the 30th day of June, 2021
Anna P. Nowik, Notary Public
This Power of Attorney is granted under and by the authority of the following resolutions adopted by the Boards or Directors of Travelers Casualty and Surety Company of America, Travelers Casualty and Surety Company, and St. Paul Fire and Marine Insurance Company, which resolutions are now in full force and effect, reading as follows:

RESOLVED, that the Chairman, the President, any Vice Chairman, any Executive Vice President, any Senior Vice President, any Vice President, any Second Vice President, the Treasurer, any Assistant Treasurer, the Corporate Secretary or any Assistant Secretary may appoint Attomeys-in-Fact and Agents to ad for and on behalf of the Company and may give such appointee such authortty as his or her certificate of authority may prescribe to sign with the Company's name and seal with the Company's seal bonds, remgnizances, contracts of indemnity, and other writings obligatory in the nature of a bond, recognizance, or conditional undertaking, and any of said officers or the Board of Directors at any time may remove any such appointee and revoke the power given him or her; and it is
FURTHER RESOLVED, that the Chairman, the President, any Vice Chairman, any Executive Vioe President, any Senior Vice President or any Vl(J3 President may delegate all or any part of the foregoing authority to one or more officers or employees of this Company, provided that each such delegation is in writing and a copy thereof is filed in the office of the Secretary; and it is FURTHER RESOLVED, that any band, reoognizance, COntraCt Of indemnity, or writlng obligatory in the nature Of a band, recognizance, Or conditional undertaking shall be valid and binding upon the Company when (a) signed by the President, any Vice Chairman, any Executive Vioe President, any Senior Vice President or any Vice President, any Second Vice President, the Treasurer, any Assistant Treasurer, the Corporate Secretary or any Assistant Secretary and duly attested and sealed with the Company's seal by a Secretary or Assistant Secretary; or (b) duly executed (under seal, if required) by one or more Attorneys-in-Fact and Agents pursuant to the power prescribed in his or her certificate or their certificates of authority or by one or more Company officers pursuant to a written delegation of authority; and it is FURTHER RE80LVED, that the signature of each of the following officers: President, any Executive Vice President, any Senior Vice President, any Vice President, any Assistant Vice President, any Secretary, any Assistant Secretary, and the seal of the Company may be affixed by facsimile to any Power of Attorney or to any certificate relating thereto appointing Resident Vice Presidents, Resident Assistant Secretaries or Attorneys-in-Fact for purposes only of executing and attesting bonds and undertakings and other wrttings obligatory in the nature thereof, and any such Power of Attorney or certificate bearing such facsimile signature or facsimile seal shall be valid and binding upon the Company and any such power so executed and certified by such facsimile signature and facsimile seal shall be valid and binding on the Company in the futurs with rsspect to any bond or understanding to which it is attached. 1, Kevin E. Hughes, the undersigned, Assistant Secretary of Travelers Casualty and Sure§ Company of America, Travelers Casualty and Surety Company, and St. Paul Fire and Marine Insurance Company, do hereby >rtify that the above and foregoing is a true and correct copy of the Power of Attomey executed by said Corripanies,yvhich remains in full force and effect.

Dated this 22nd day o[ Fit+ruary-. , 2023
Z"ni.hu'eskretary
Tu vbiify llw aullieiilAjly ulLliib Iambi ufAlluiiuy, y&ax 4JT// ua &l! I mu) QI 3080.

Pushs r srst Irt Iris silivn= - =---- J AIA...,I /fi4-lrtandthe detaih Ofth0 band tO Which fh/l /%WWOfAtk}ffie7ig attadJed. 2';' 167
Attachment E
Amendment No. 1
to Contract No. 2023-11-CC
AMENDMENT NO. l TO CONTRACT N0. 2023-11-CC WITH FCG CONSULTANTS, INC., FOR ADDITIONAL CONSTRUCTION

MANAGEMENT SERVICES FOR THE CONSTRUCTION OF PHASE II

OF THE FIRESTONE BOULEVARD REGIONAL CORRIDOR
CAPACITY ENHANCEMENT PROJECT, CITY PROJECT N0. 476-TRF, METRO CALL FOR PROJECTS ID NO. F3124 ("BOULEVARD PROJECT")
This Amendment No. I to Contract No. 2023-11-CC ("Amendment No. 1") for additional construction management and inspection services for the constniction of Phase II of the Firestone Boulevard Regional Corridor Capacity Enhancement Project, City Project No. 476- TRF, Metro Call For Projects ID No. F3124 ("Boulevard Project"), is made and entered into on June 25, 2024, by and between the City of South Gate ("City"), and FCG Consultants, Inc. ("Consultant"). City and Consultant are sometimes hereinafter individually referred to as a "Party" and collectively referred to as "Parties."

RECIT ALS
WHEREAS, on February 14, 2023, the City Council approved Contract No. 2023-11- CC with Consultant ("Agreement"), to provide construction management and inspection services for the construction of Phase II of the Firestone Boulevard Regional Corridor Capacity Enhancement Project, City Project No. 476-TRF, Metro Call For Projects ID No. F3124 ("Boulevard Project"), in an amount not-to-exceed Two Hundred Eight Thousand Forty-Three Dollars ($208,043);
WHEREAS, the City and Consultant therefore desire to execute Amendment No. 1 to the Agreement ( Amendment No. 1), increasing the compensation payable to the Consultant in an amount not to exceed Twenty Nine Thousand Two Hundred Eighty-Seven Dollars and Twenty One Cents ($29,287.21) to fund additional construction management and inspection services beyond the original contract duration by about two months along the Boulevard Project in Exhibit "A" attached hereto and for construction support for the Boulevard Project, Phase II identified in Exhibit "B" attached hereto, under the terms and conditions of the Agreement, bringing the aggregate total of the Agreement, Amendment No. 1 to Two Hundred Thirty Seven Thousand Three Hundred Thirty Dollars and Twenty One Cents ($237,330.21).

NOW, THEREFORE, the parties hereby agree as follows:

1. MODIFICATION TO AGREEMENT
1,1 SCOPE OF WORK. Consultant shall expand its services to the City as identified in Exhibits "A" and Exhibit "B" attached hereto and made a part to this Agreement. City reserves the right to augment or reduce the scope of work as the City deems necessary.
1,2 COMPENSATION. The amount of compensation paid by the City to Contractor 1 3) 168
Amendment No. I
to Contract No. 2023-11-CC
for the work identified in Exhibit "A" and Exhibit "B" shall not exceed Twenty Nine Thousand Two Hundred Eighty-Seven Dollars and Twenty One Cents ($29,287.21)
EFFECT OF AMENDMENTS. Except as expressly amended herein, all other terms and conditions of the Agreement and its amendments, attachments, and exhibits thereto, shall remain unchanged in full force and effect. All the recitals to this Amendment No. I are incorporated into the Agreement as modified by this Amendment No. 1. Furthermore, City reserves the right to augment or reduce the scope of work as the City deems necessary.

IN WITNESS WHEREOF, the Parties hereto have caused this Amendment No. 1 to be executed and attested by their respective officers hereunto duly authorized.

CITY OF SOUTH GATE:

ATTEST:

By:

Gil Hurtado, Mayor
Dated:

By:

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

By:

Raul F. Salinas, City Attorney
FCG CONSULT ANTS, INC.:

B7:

Maha Alfakhouri, President/CEO
Dated:
2 169
Balm

C O N S U LTA N TS
22885 Savi Ranch Pkwy, Suite G
Yorba Linda, CA 92887
Phone: 714.312.0317
Fax: 714.720.5885
Kenneth Tang, P.E.

City of South Gate
8650 California Aye
South Gate, CA 90280
RE: FCG Amendment Request #1
The Boulevard Phase n Project 476-TRF
Mr. Tang,
Februag 29, 2024
FCG looks forward to serving the City of South Gate to complete The Boulevard Phase n Project (No. 476-TRF).

As previously discussed, the FCG budget for Constniction Management, Inspection, and Labor Compliance services (Services) for the subject project has been drawn down quicker than anticipated due to the inspection changes requested by the City of South Gate (City). Prior to FCG being awarded a contract for the Services, the City requested that FCG budget for a 4-hour inspection day, which FCG complied with. After constniction began, the City asked FCG to perform full-time inspections at 8 hours per day and any overtime in order to closely monitor traffic and safety throughout the entire work day, and ensure traffic control and safety devices were adequately set up at the end of each work day. FCG complied with this request and has provided full-time inspection throughout the entire duration of the project. Additionally, the City requested end-of-day safety reports outlining the condition of the site after all crews had left for the day.

The City has also approved added work which includes the installation of 60 uplights within the parkway and median along Firestone Boulevard which will require additional Constnuction Management, Inspection, and Labor Compliance services.

Due to the requested changes noted above, the FCG Services budget has a balance of -$8,080.38 as of January 31, 2024.

The remaining work on the project includes (1) Punch List, (2) Uplighting Installation, and (3), Project Closeout.

In order to manage the existing City budget, the City has asked FCG to only perform inspections for the uplighting at "Critical Milestones" wmch the City has defined as:

Inspection of material when it arrives on site and discussions of the work plan with the contractor.

Inspection of lighting foundations after the foundations have been poured.

Inspection of uplighting after the lights have been set in the foundations.

Final inspection after all landscaping has been installed.

In order to accommodate the City's request, FCG has budgeted for a total of 24 inspection hours for the uplighting work. Note that tis precludes FCG from inspecting daily traffic control, safety, laborer hours, unforeseen field 1 32. 170
conditions, daily workmanship, preparing daily safety reports, and observing all activities on days where Critical Milestone work is not taking place.

In order to successfully complete the pro5ect, FCG requests a total amendment of $29,287.21 to cover the existing negative balance and the remaining scope of work as shown below.

Fee Breakdiwn - FCG Amendment Request
Hourly Rate Hours Per Day Labor Cost
Constnuction Manager $ 234.72 2.00 $ 469.44
Inspector $ 147.87 3.00 $ 443.61
Office Engineer $ 100.93 2.00 $ 201.86
Cost Per Day $ 1,114.91
Cost Remaining for Punch List (5 Working Days) $ 5,574.55 Cost for Uplighting (8 Working Days, Inspect for Milestones only) $ 8,919.28 Cost for Closeout (10 Working Days, No Hours for Inspector) $ 6,713.00 Current Deficit as of 1/31/2024 !-""-""F"-":'(n,6iiorfs) j lT_otalAmendmentRequest _$ 2!u7.21_
Note that this fee is basedupon the anticipated working days and scope of work described above. Shouldunforeseen conditions arise requiring a plan change, should the working days increase, or should the City request additional work not outlined in this letter, FCG will be required to either reduce the scope of work or negotiate a new fee with the City.

FCG hopes to complete the project quicker than anticipated to reduce the cost impact on the City. We believe the fee breakdown above is a conservative estimate of the remaining working days and the level of effort needed to complete the project.

If you have any questions regarding this amendment request, please reach out to the Consttuction Manager, Fabian Aoun, at 951-743-5208 or fabian.aoun@,fcgconsultants.com.

Sincerely, Concurrence:

AB Fakhouri, P.E.

Project Manager
Cell: 714-225-3007
Kenenth Tang, PE
Senior Civil Engineer
City of South Gate
CC: Fabian Aoun, P.E., Consttuction Manager
2 171
Exhibit B
maim

CONSULTANTS
22885 Savi Ranch Pkwy, Sutte G
Yorba Ijnda, CA92887
Phone: 714312-0317
Fax: 714.7203885
Feb 29, 2024
RE: FCGAmendmentRequest#l
The Boukavard Phase n Project 476-TRF
Fee BreaM:im - FCG ..4meudmeut Reouest
- - - - - - --- - - - - - - - - -- - - -- - - - - ---l- - - - Hourly Rate Hours Per Day Labou- Cost
Constniction Maimger $ 234-72 2_00 $ 469-44
Inspectq $ 147-87 3_00 $ 443_6N
Office Engineer $ 100_93 2_00 $ 201_86
Cost Per Day $ 1,114.91
Cost Remaining for Puncb List (5 Working Davs) S 5-574_55- - - - - - ---rs - -- - -- - - -- - - *r - - - - rs - --. t '- r - - ?- - - --' - Cost for Uplighting (8 uTorkiug Days, Inspect for Afflestones only) $ 8,919-28 Cost for aoseout (10 uTorking Days, No Hours for Inspector) $ 6,713.00 Ciu'rent Deficit as of 1/31/2024 1"'i"7'7'5
fflljmm
aso.ss) I
fTntal Amend:meniaR-eqaie.st $ 29,287.21
M 172
Contract No. 2023-11-CC
Attachment F

AGREEMENT FOR CONSTRUCTION MANAGEMENT AND
INSPECI I0N SMVICES FOR THE CONSTRUCTION OF PHASE II OF THE FiS'lt)ME BOULEVARD REGIONAL (X)RRtuOR UAPACITY F,NHANCEMENT PROJECT, CITY PROJECT N0. 476-TRF, METRO CALL FOR PROJECTS ID NO. F3124 ("BOULEVARD PROJECT") This Agreement for Constnuction Management and Inspection Services ("Agreement") is made and entered into on Febnuary 14, 2023, by and between the City of South Gate, a municipal corporation ("City"), and FCG Consultants, Inc., a Califomia corporation ("Consultant"). The City and Consultant are sometimes hereinafter individually referred to as a "Party" and collectively as "Parties."

RECITALS
WHEREAS, City desires to retain a qualified provider for certain services relating to Constnuction Management and mpection Services for the Firestone Boulevard Regional Corridor Capacity F.nhsnr.ents, Alameda Street to Annetta Avenue, Phase II, City Project No. 476-TRF ("Boulevard Project");
WHEREAS, Consultant warrants to City that it has the requisite skills, knowledge, qualifications, manpower and expertise to perform properly and timely the professional senices under this Agreement; and
WHEREAS, based on such representation, City desires to contract with Consultant to perform the professional semces described in the Proposal attached hereto as Exhibit "A" of this Agreement.

NOW, THEREFOR, the Parties hereby agree as follows:

1. SCOPE OF WORK OR SERVICES. City hereby engages Consultant, and Consultant accepts such engagement, to perform the services set forth in the Proposal as described in Exhibit "A." attached hereto mid made a part of ttffls Agreement. The Proposal may be mutually amended from time to time by both Parties in writing.

2. COMPENSATION. The total amount of compensation for this Agreement shall not exceed the sum of Two Hundred Eight Thousand Forty-Three Dollars ($208,043) as described in Exhibit "B." City shall pay Consultant for its professional services rendered and reasonable 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.

2.1 Consultant shall be required to attend meetings at City Hall as necessary in the delivery of the projects. Travel time between the Consultant's office and City Hall shall not be billable; however, mileage is an allowable charge reimbursable at the federal rate. Consultant may request an exemption on a case by case basis. 173
Agreement for Professional Services
FCG Consultants, Inc.

Page 2 of 10 ends

South Gate City CouncilJune 11, 2024

South Gate City Council
June 11, 2024