SOUTH GATE CITY COUNCIL
REGULAR MEETING AGENDA
Tuesday, July 28, 2026 at
6:30 p.m.
SOUTH GATE COUNCIL CHAMBERS
8650 CALIFORNIA AVE
SOUTH GATE, CA 90280
DIAL-IN NUMBER 1 (213) 338-8477
MEETING ID: 894 2134 0556
VIEW MEETING LIVE ONLINE AT:
HTTPS://YOUTUBE.COM/@SOUTHGATECA90280
City Officials
MAYOR,
Joshua Barron
CITY CLERK,
Yodit Glaze
VICE MAYOR,
Al Rios
CITY TREASURER,
Jose De La Paz
COUNCIL MEMBER,
Maria del Pilar Avalos
CITY MANAGER,
Rob Houston
COUNCIL MEMBER,
Maria Davila
CITY ATTORNEY,
Ra
ú
l F. Salinas
COUNCIL MEMBER,
Gil Hurtado
If you would like to participate in this meeting, you can participate via the following options:
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South Gate, CA - YouTube
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3. PARTICIPATE BEFORE THE MEETING by emailing the City Clerk at:
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4. ATTEND THE MEETING IN PERSON
1 *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, 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 4:00 pm 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:
Joshua Barron, Mayor
INVOCATION:
Tina De La Rosa, Acting Director of Parks & Recreation
PLEDGE OF ALLEGIANCE:
Destiny Rivera, City Attorney Guest
ROLL CALL:
Yodit Glaze, City Clerk
Public Hearings
1. Adopt Resolution for City of South Gate Participation in the Statewide Community Infrastructure Program Community Infrastructure Program of the California Statewide Communities Development Authority
(CONTINUANCE
REQUESTED)
Staff recommends that the City Council continue the public hearing to August 11, 2026. (CD)
2 Documents:
Item 1 Report 07282026.pdf
Reports And Presentations
2. Proposed Use of the State of California 2026/27 Cannabis Tax Fund Grant Program (CTFGP)
The City Council will consider: (PD)
a. Authorizing utilization of the 2026-2027 CTF Grant funds in the amount of $98,790 for overtime, training and equipment;
b. Amending the Fiscal Year 2026/27 Law Enforcement Grants Fund Budget by appropriating $23,040 for overtime salaries, $10,000 for training and $65,750 for equipment, specifically a new police motorcycle; and
c. Authorizing the Chief of Police or his designee to execute the CTF Grant Agreement in a form acceptable to the City Attorney.
Documents:
Item 2 Report 07282026.pdf
Comments From The Audience - Non-Agenda Items
During this time, members of the public may address the City Council regarding any items not listed on the agenda and within the subject matter jurisdiction of the City Council and not on this agenda. Comments from the audience will be limited to three (3) minutes per speaker; unless authorized by the Mayor, the time limit may not be extended by utilizing another member's time. There will be no debate or action on items not listed on the agenda unless authorized by law. The collective initial period of time for comments from the audience shall be limited to 45 minutes. Any speaker that did not get a chance to speak during this segment due to the 45-minute limitations will be able to speak at the end of the meeting prior to adjournment.
Note: The City Council desires to provide all members of the public with the opportunity to address the Council. Nevertheless, obscene language, comments intended to disrupt/interfere, other actions which disrupt the progress of the meeting or slanderous comments will not be tolerated and may result in ejection and/or may constitute a violation of South Gate Municipal Code Section1.04.110.
Reports And Comments From City Officials
During this time, members of the City Council will report on matters pertaining to their service on various intergovernmental boards and commissions as a representative of the City pursuant to Assembly Bill 1234. City Council Members will also have an opportunity to comment on matters not on the agenda.
3 Consent Calendar Items
Agenda Items
3, 4, 5, 6, 7
, 8, 9, 10,
and
11 are Consent Calendar Items. All items including
Ordinances, Resolutions and Contracts, may be approved by adoption of the Consent Calendar, individually and collectively by one (1) motion. There will be no separate discussion of these items unless Members of the City Council, the public, or staff request that specific items be removed from the Consent Calendar for separate discussion and action. Members of the public are permitted to speak on any item listed but their time period is limited to three (3) minutes in total.
Any motion to introduce or adopt an Ordinance on the Consent Calendar shall be: (1) a motion to waive the reading of the Ordinance and introduce the Ordinance or (2) a motion to waive the reading of the Ordinance and adopt the Ordinance, as appropriate.
3. Consideration of Adopting a Resolution Establishing a Five-Year Fiscal Review and Accountability Commitment in Connection with the Utility Users Tax Measure on the November 3, 2026 Ballot
The City Council will consider: (CM)
a. Adopting a Resolution of the City Council of the City of South Gate, California, establishing a Five-Year Fiscal Review and Accountability commitment in connection with the Utility Users Tax measure at the November 3, 2026 General Municipal Election.
Documents:
Item 3 Report 07282026.pdf
4. Amendment No. 1 to Contract No.2026-28-AC with HDR Engineering, Inc. for the Active Transportation Program Cycle 8 Grant Application Support Services
The City Council will consider: (PW)
a. Approving Amendment No. 1 to Contract No. 2026-28-AC ("Amendment No. 1") with HDR to fund additional professional services for Active Transportation Program Cycle 8 Grant Application Support Services, for a not to exceed amount of $11,899;
b. Appropriating $11,899 in Measure R funds to cover for the Active Transportation Program grant application; and additional support services; and
c. Authorizing the Mayor to execute Amendment No.1 in a form acceptable to the City Attorney.
Documents:
Item 4 Report 07282026.pdf
5. Amendment No. 4 to Contract No. 2022-85-AC with BDO USA, LLP., to Continue Providing General Accounting Services and Financial Assistance to the City of South Gate Housing Authority
4 The City Council will consider: (CD)
a. Approving Amendment No. 4 to Contract No. 2022-85-AC with BDO, to continue providing as-needed accounting and financial services to the City of South Gate Housing Authority (SGHA) retroactive to July 1, 2026 through June 30, 2027, in an aggregate amount no to exceed $125,000; and
b. Authorizing the Mayor to execute Amendment No. 4 in a form acceptable to the City Attorney.
Documents:
Item 5 Report 07282026.pdf
6. Agreement with General Pump Company, Inc., for On-Call Maintenance Services for the Municipal Water System
The City Council will consider: (PW)
a. Approving an Agreement with General Pump Company, Inc., to perform well maintenance services on an as-needed basis ("Agreement"), for a three-year term with two optional one-year extensions, in an annual amount not to exceed $100,000 for a total of $300,000 for the initial three-year term; and
b. Authorizing the Mayor to execute the Agreement in a form acceptable to the City Attorney.
Documents:
Item 6 Report 07282026.pdf
7. Professional Services Agreement with Willdan Engineering for Program and Contract Management Support Services for the Public Works Department, Field Operations Division
The City Council will consider: (PW)
a. Approving a Professional Services Agreement ("Agreement") with Willdan Engineering to provide program and contract management support services for the Public Works Department, Field Operations Division, for a one-year term, effective July 1, 2026, through June 30, 2027, in an amount not to exceed $163,200; and
b. Authorizing the Mayor to execute the Agreement in a form acceptable to the City Attorney.
Documents:
Item 7 Report 07282026.pdf
8. Adoption of a Resolution Releasing the City's Subordinate Deed of Trust Lien 5 Encumbering Real Property Located at 2713 Madrid Place
The City Council will consider adopting the attached Resolution: (CM)
a. Approving the Substitution of Trustee and Deed of Full Reconveyance in favor of Ramon Nandino, or the person(s) legally entitled thereto, releasing the City’s subordinate deed of trust lien recorded December 17, 1998, as Instrument No. 98-2288319 in the Official Records of Los Angeles County; and
b. Authorizing the Mayor to execute the reconveyance; and directing that the executed and notarized instrument be recorded or released only after the City has received the payoff amount of $145,000 owed under the Nandino shared appreciation loan, in a form approved by the City Attorney.
Documents:
Item 8 Report 07282026.pdf
9. Purchase Order for a Chevrolet Silverado EV Crew Cab Electric Truck
The City Council will consider: (PARKS)
a. Approving Purchase Order with National Auto Fleet Group for the purchase of one Chevrolet Silverado EV Crew Cab electric truck for the Parks and Recreation Department in the amount of $69,163.32.
Documents:
Item 9 Report 07282026.pdf
10. To Accept a Private Donation and Ratify the Purchase and Training of a Police Canine (K9)
The City Council will consider: (PD)
a. Accepting and ratifying receipt of a private donation in the amount of $20,000 from Mr.
Ronald Loynds for the purchase and training of a K9 and recognizing the donation as revenue in the Fiscal Year 2026-27 Budget;
b. Amending the Fiscal Year 2026-27 Budget by appropriating $20,000 for the purchase 6 and training of a K9 (100-502-21-9005 ($8,500) and 100-502-21-6340 ($11,500)), funded by the $20,000 in donation revenue; and
c. Ratifying the purchase and training of the Police Service Canine from Gold Coast K9 Services, LLC in the total amount of $20,871.25, as reflected in Invoice No. SGPD-38 (Attachment A).
Documents:
Item 10 Report 07282026.pdf
11. Approval of City Council Meeting Minutes
The City Councill will consider: (CLERK)
a. Approving the Special and Regular Meeting minutes of May 12, 2026; b. Approving the Regular Meeting minutes of May 26, 2026; c. Approving the Special and Regular Meeting minutes of June 9, 2026; and d. Approving the Special and Regular Meeting minutes of June 23, 2026.
Documents:
Item 11 Report 07282026.pdf
Recommendations And Requests
12. Approve Warrant Register for July 28, 2026
The City Council will consider: (AS)
a. Approving the Warrant Register for July 28, 2026.
Total of Checks: $2,073,572.19 Less: Voids (158,889.63) Less: Employee Payroll Deductions
(392,137.26)
Grand Total: $1,522,545.30
Cancellations: 109411, 114013, 114025, 108643, 108645, 108706, 108707, 108778, 108814, 145951, 109167, 109194, 109250, 109252, 109271, 109278, 109453, 109792, 110145, 110286, 110308, 110550, 110836
Documents:
Item 12 Report 07282026.pdf
7 Adjournment
I, Yodit Glaze, City Clerk, certify that a true and correct copy of the foregoing Meeting Agenda was posted on July 23, 2026, at 1:52 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.
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, email, mail. Methods of participation may be subject to change during other such times when a State of Emergency, Health Order or State Executive Order limits in-person participation.
CURFEW
In absence of a motion duly adopted by majority vote of the City Council, the Presiding Officer may adjourn the City Council meetings at 10:30 p.m. The Presiding Officer may ask the City Council if any agenda items listed should be continued or dealt with during the meeting. For those items to be continued, the City Council can direct the item be placed on the next City Council agenda or the current meeting may be adjourned to a time certain at which time the meeting shall be reconvened as an Adjourned Regular Meeting of the City Council and action upon the published agenda continued. 8 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 Offite of tlie
Soutli Gate City Cleil- Item No. I
l(11 2 3 7n",'t.
FILED City of South Gate
"J'.'lC)
CITY COUNCIL
AGEfA BaILL
For the Regular .Meeting of: July 28, 2026
Originating Department: Community Development
Ctffl Manager:
GabrielPerez for RobHouston
SUBJECT: ADOPT RESOLUTION FOR CITY OF SOUTH GATE PaTICIPATION IN THE STATEWff)E COMMUNITY INFRASTRUCTURE PROGRAM OF THE CALIFORNIA STATF,WIDECOMMUNITIESDEVELOPMF,NT AUTHORITY. CONTINUANCEREQUESTED PURPOSE: To hold a public hearing to consider City of South Gate ("Agency") participation in the Statewide Community Infrastructure Program ("SCIP"), which is sponsored by the California Statewide Communities Development Authority ("CSCDA"), that will enable property owners to finance public capital improvements and/or development related fees for public capital improvements imposed on new development. Said public capital improvements, if financed, will be among the public capital improvements required in connection with a development project given. Said development-related fees, if financed, will be used by tlie Agency to pay for public capital improvements, which will serve the Agency.
RECOMMENDED ACTION: Staff recommends that the City Council continue the public hearing to August 11, 2026,
10 Office of the
Sotith Ga!e City Clerk Item No. 2
nil 2 3 70')R
FILED
6 a. 3 7 =--=
Cil of South Gate
CITY COUNCIL
AGENDA BNLL
For the Regular Meeting of: July 28, 2026
Originating Departmem:
DepartmeritDirector:
Maunuel Amna CityMmager: u4rtni-o CertitB((jts-
Mawe[Ararxa for Rob Houston
SUBJECT: PROPOSED USE OF THE STATE OF CALIFORNIA 2026/27 CANNABIS
TAX FUND GRANT PROGRAM (CTFGP)
PURPOSE: To approve the use of Cannabis Tax Fund GrantProgram ("CTF Grant") funds inthe amount of $98,790 for overtime, equipnnent, and training.
RECOMMENDED ACTIONS: The City Council will consider:
a. Aulhorizing utilization of the 2026-2027 CTF Grant funds in the amount of $98,790 for overtime, training and equipment;
b. Amending the Fiscal Year 2026/27 Law Enforcement Grants Fund Budget by appropriating $23,040 for overtime salaries, $10,000 for taining and $65,750 for equipment, specifically a new police motorcycle; and c. Authorizing the Cmef of Police or his designee to execute the CTF Grant Agreement in a form acceptable to the City Attorney,
FISCAL IMPACT: There is no fiscal impact to the General Fund, and no requirement for the City to provide matching funds. The total amount of funding that has been allocatedto the City for FY 2026/27 is $98,790. The funds must increase or enhance the City's existing programs and may not be used to replace funding the City would otherwise provide, ANALYSIS: The South Gate Police Department submitted a grant application to the California Highway Patrol ("CHP") Cannabis Tax Fund Gtant Programin early 2026, In June 2026, the CHP awarded the Department $98,790 for overtime to cover impaired-driving enforcement operations, personnel training and education, as well as approved equipment directly conriected to impaired- driving enforcement.
BACKGROUND: With the passage of Proposition 64, the Control, Regulate, and Tax Adult Use of Marijuana Act ("AUMA"), Califoria voters mandated the State set aside funding for the CHP to award grants to local governments and qualified nonprofit organizations, as described in Revenue and Taxation Code Section 34019(f)(3)(B),
The CTF Grant marks an important step toward reducing impaired driving crashes, increasing public awareness surrounding the dangers of impaired driving, and making California's roadways 11 a safer place to travel.
The CHP works closely with state and local agencies and other traffic safety stakeholders to actively address impaired driving. The CHP will consider a variety of factors in determining specific needs for each grant cycle, including opportunities and projects best suited to prevent the loss of life, injuries, and property damage caused by driving under the influence of alcohol and/or drugs.
The funding provided is appropriated by the California State Controller's Office, and all grants are awarded on a competitive basis, unless otherwise specified within the Request for Application.
The CHP may consider an extended project performance period based on need, as determined by the CHP. The awarding of a grant does not guarantee ongoing or future funding.
ATTACHMENTS: A. CTF Grant Agreement
B. Intent to Award Grant letter
12 Attachment A
State of California Agenda Bill 7/28/26
DEPARTMENT OF CALIFORNIA HIGHWAY PATROL
GRANT AGREEMENT - Page I
Award Number
30933
1. GRANTTITLE
FY26/27 CTFGP Law Enforcement - South Gate Police Department
2. NAME OF ORGANIZATION/AGENCY
South Gate Police Department
3. ORGANIZATION/AGENCYSECTIONTOADMINISTERGRANT
South Gate PD/Traffic Division
4. PROJECT PERFORMANCE PERIOD
From: 07/01/2026 To: 06/30/2027
5. PURCHASE ORDER NUMBER
6. GRANT OPPORTUNITY INFORMATION DESCRIPTION
Law Enforcement grants provide financial assistance to allied agencies for the education, prevention, and the enforcement of laws related to driving under the influence of alcohol and other drugs, including cannabis and cannabis products.
The intent of the program is to educate the public regarding the dangers of impaired driving, enforce impaired driving laws on the roadway, and improve the Organization/Agency's effectiveness through training and development of new strategies.
7. FUNDS ALLOCATED UNDER THIS GRANT AGREEMENT SHALL NOT EXCEED $98,790.00
8. TERMS AND CONDITIONS
The Grantee agrees to complete the Project, as described in the Project Description. The Grantee's Grant Application, and the California Code of Regulations, Title 13, Division 2, Chapter 13, Sections 1890.00-1 890.27, are hereby incorporated into this Grant Agreement by reference.
The parties hereto agree to comply with the Terms and Conditions of the following attachments:
* Schedule A - Project Description, Problem Statement, Goals and Objectives, and Method of Procedure * Schedule B - Detailed Budget Estimate
ii Schedule B-1 - Budget Narrative
We, the officials named below, hereby swear, under penalty of perjury under the laws of the State of California, that we are duly authorized to legally bind the Grant recipient to the above-described Grant Terms and Conditions.
IN WITNESS WHEREOF, this Grant Agreement is executed by the parties hereto.
9. APPROVAL SIGNATURES
A. AUTHORIZED OFFICIAL OF ORGANIZATION/AGENCY B. AUTHORIZED OFFICIAL OF CHP Name: Manuel Arana Name: Elliotte Johnson Phone: (916) 843-4360 Title: Chief of Police Title: Captain Fax: (916) 322-3169 Phone: (323) 357-9618
Address: 8620 California Avenue Address: 601 North 7th Street South Gate, CA 90280 Sacramento, CA 95811
E-Mail: [email protected] E-Mail: [email protected]
(Signature) (Date) (Signature) (Date)
C. ACCOUNTING OFFICER OF CHP
Name: M. V. Fojas Phone: (916) 843-3531
Title: Commander Fax: (916) 322-3159
Address: 601 North 7th Street
Sacramento, CA 95811
E-Mail: [email protected]
10. AUTHORIZED FINANCIAL CONT ACT TO RECEIVE
REIMBURSEMENT PAYMENTS
Name: Adrian Alcala
Title: Acountant
Phone: (323) 357-9618
Address: 8650 California Avenue
South Gate, CA 90280
(Signature) (Date)
13 TERMS AND CONDITIONS
Grantee shall comply with the California Code of Regulations, Title 13, Division 2, Chapter 4 3 Section 1890, et seq. and all other Terms and Conditions noted in this Grant Agreement. Failure by the Grantee to comply may result in the termination of this Grant Agreement by the California Highway Patrol (hereafter referred to as State). The State will have no obligation to reimburse the Grantee for any additional costs once the Grant Agreement has been terminated.
A. EXECUTION
1. The State (the California Highway Patrol) hereby awards, to the Grantee, the sum of money stated on page one of this Grant Agreement. This funding is awarded to the Grantee to carry out the Project set forth in the Project Description and the terms and conditions set forth in this Grant Agreement.
2. The funding for this Grant Agreement is allocated pursuant to California Revenue and Taxation Code Section 3401 9(f)(3)(B). The Grantee agrees that the State's obligation to pay any sum under this Grant Agreement is contingent upon availability of funds disbursed from the California Cannabis Tax Fund to the State. If there is insufficient funding, the State shall have the option to either: 1 ) terminate this Grant Agreement; whereby, no party shall have any further obligations or liabilities under this Grant Agreement, or 2) negotiate a Grant Agreement Amendment to reduce the grant award and scope of work to be provided under this Grant Agreement.
3. The Grantee is not to commence or proceed with any work in advance of receiving notice that the Grant Agreement is approved. Any work performed by the Grantee in advance of the date of approval by the State shall be deemed volunteer work and will not be reimbursed by the State.
4. The Grantee agrees to provide any additional funding, beyond what the State has agreed to provide, pursuant to this Grant Agreement, and necessary to complete or carry out the Project, as described in this Grant Agreement. Any modification or alteration of this Grant Agreement, as set forth in the Grant Application submitted by the Grantee and on file with the State, must be submitted in writing thirty (30) calendar days in advance to the State for approval.
5. The Grantee agrees to complete the Project within the timeframe indicated in the Project Performance Period, which is on page one of this Grant Agreement.
B. PROJECT ADMINISTRATION
1. The Grantee shall submit all reimbursements, progress, performance, and/or other required reports concerning the status of work perFormed in furtherance of this Grant Agreement on a quarterly basis, or as requested by the State.
2. The Grantee shall provide the State with a final report showing all Project expenditures, which includes all State and any other Project funding expended, within sixty (60) calendar days after completion of this Grant Agreement.
3. The Grantee shall ensure all equipment which is purchased, maintained, operated, and/or developed is available for inspection by the State.
4. Equipment purchased through this Grant Agreement shall be used for the education, prevention, and enforcement of impaired driving laws, unless the Grantee is funding a portion of the purchased price not dedicated to impaired driving and that portion is not part of the Project costs.
Equipment purchased under this Grant Agreement must only be used for approved Project- related purposes, unless otherwise approved by the State in writing.
5. PriortodispositionofequipmentacquiredunderthisGrantAgreement,theGranteeshallnotify the State via e-mail, and by telephone, by calling the California Highway Patrol, Impaired Driving Section, Cannabis Grants Unit at (916) 843-4360. 14 TERMS AND CONDITIONS
C. PROJECT TERMINATION
1. Grantee or the State may terminate this Grant Agreement at any time prior to the commencement of the Project. Once the Project has commenced, this Grant Agreement may only be terminated if the party withdrawing provides thirty (30) calendar days written notice of their intent to withdraw,
a. If by reason of force majeure the performance hereunder is delayed or prevented, then the term end date may be extended by mutual consent for the same amount of time of such delay or prevention. The term "force majeure" shall mean any fire, flood, earthquake, or public disaster, strike, labor dispute or unrest, embargo, riot, war, insurrection or civil unrest, any act of God, any act of legally constituted authority, or any other cause beyond the Grantee's control which would excuse the Grantee's performance as a matter of law. b. Grantee agrees to provide written notice of an event of force majeure under this Grant Agreement within ten (10) calendar days of the commencement of such event, and within ten (10) calendar days after the termination of such event, unless the force majeure prohibits Grantee from reasonably giving notice within this period. Grantee will give such notice at the earliest possible time following the event of force majeure.
2. Any violations of law committed by the Grantee, misrepresentations of Project information by the Grantee to the State, submission of falsified documents by the Grantee to the State, or failure to provide records by the Grantee to the State when requested for audit or site visit purposes may be cause for termination. If the Project is terminated for the reasons described in this paragraph, the State will have no obligation to reimburse the Grantee for any additional costs once the Grant Agreement has been terminated.
3. The State may terminate this Grant Agreement and be relieved of any payments should the Grantee fail to peform the requirements of this Grant Agreement at the time and in the manner herein provided. Furthermore, the Grantee, upon termination, shall return grant funds not expended by the Grantee as of the date of termination.
4. If this Grant Agreement is terminated, the State may choose to exclude the Grantee from future Grant Opportunities.
D. FINANCIAL RECORDS
1. The Grantee agrees the State, or their designated representative, shall have the right to review and to copy all records and supporting documentation pertaining to the performance of this Grant Agreement. Grantee agrees to maintain such records for possible audit for a minimum of five (5) years after final payment, unless a longer period of records retention is stipulated or required by law. Grantee agrees to allow the auditor(s) access to such records during normal business hours and to allow interviews of any employees who might reasonably have information related to such records. Furthermore, the Grantee agrees to include a similar right for the State to audit all records and interview staff in any subcontract related to performance of this Grant Agreement.
E. HOLD HARMLESS
1. The Grantee agrees to indemnify, defend, and save harmless the State, its officials, agents and employees from any and all claims and losses accruing or resulting to any and all Grantee's staff, contractors, subcontractors, suppliers, and other person, firm or corporation furnishing or supplying work services, materials, or supplies in connection with the performance of this Grant Agreement, and from any and all claims and losses accruing or resulting to any person, agency, firm, corporation who may be injured or damaged by the Grantee in performance of this Grant Agreement.
15 TERMS AND CONDITIONS
F. NONDISCRIMINATION
1. The Grantee agrees to comply with State and federal laws outlawing discrimination, including, but not limited to, those prohibiting discrimination because of sex, race, color, ancestry, religion, creed, national origin, physical disability (including HIV and AIDS), mental disability, medical condition (including cancer or genetic characteristics), sexual orientation, political affiliation, position in a labor dispute, age, marital status, and denial of statutorily-required employment- related leave. (GC 12990 [a-f] and CCR, Title 2, Section 8103.) G. AMERICANS WITH DISABILITIES ACT
1. The Grantee assures the State it complies with the Americans with Disabilities Act (ADA) of 1990, which prohibits discrimination on the basis of disability, as well as all applicable regulations and guidelines issued pursuant to the ADA. (42 u.s.c. 12101 et seq.) H. DRUG-FREE WORKPLACE
1. TheGranteeshallcomplywiththerequirementsoftheDrug-FreeWorkplaceActofl990andwill provide a drug-free workplace by taking the following actions:
a. Publish a statement notifying employees that unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance is prohibited and specifying actions to be taken against employees for violations. b. Establish a Drug-Free Awareness Program to inform employees about:
i. The dangers of drug abuse in the workplace.
ii. The person's or Organization/Agency's policy of maintaining a drug-free workplace. iii. Any available counseling, rehabilitation, and employee assistance programs. iv. Penalties that may be imposed upon employees for drug abuse violations. c. Every employee who works on the Project will:
i. Receive a copy of the company's drug-free workplace policy statement. ii. Agree to abide by the terms of the company's statement as a condition of employment on the Grant Agreement.
2. Failure to comply with these requirements may result in suspension of payments under this Grant Agreement, or termination of this Grant Agreement, or both, and Grantee may be ineligible for award of any future Grant Agreements if the department determines that any of the following has occurred:
a. The Grantee has made false certification or violated the certification by failing to carry out the requirements, as noted above. (GC 8350 et seq.)
1. LAWENFORCEMENT AGENCIES
1. All law enforcement Organization/Agency Grantees shall comply with California law regarding racial profiling. Specifically, law enforcement Organization/Agency Grantees shall not engage in the act of racial profiling, as defined in California Penal Code Section 13519.4. 16 TERMS AND CONDITIONS
J. LABOR CODE/WORKERS' COMPENSATION
1. The Grantee is advised and made aware of the provisions which require every employer to be insured against liability for Worker's Compensation or to undertake self-insurance in accordance with the provisions, and Grantee affirms to comply with such provisions before commencing the performance of the work of this Grant Agreement, (refer to Labor Code Section 3700).
K. GRANT APPLICATION INCORPORATION
1. The Grantee agrees the Grant Application and any subsequent changes or additions approved or required by the State is hereby incorporated into this Grant Agreement.
L. ST ATE LOBBYING
1. The Grantee is advised that none of the funds provided under this Grant Agreement may be used for any activity specifically designed to urge or influence a state or local legislator to favor or oppose the adoption of any specific legislative proposal pending before any state or local legislative body. Such activities include both direct and indirect (e.g., "grassroots") lobbying activities, with one exception. This does not preclude a state official, whose salary is supported by this Grant Agreement, from engaging in direct communications with the state or local legislative officials, in accordance with customary state and/or local practice.
M. REPRESENTATION AND WARRANTIES
1. The Grantee represents and warrants that:
a. It is validly existing and in good standing under the laws of the State of California, has, or will have the requisite power, authority, licenses, permits, and the like necessary to carry on its business as it is now being conducted and as contemplated in this Grant Agreement, and will, at all times, lawfully conduct its business in compliance with all applicable federal, state, and local laws, regulations, and rules.
b. It is not a party to any Grant Agreement, written or oral, creating obligations that would prevent it from entering into this Grant Agreement or satisfying the terms herein. c. If the Grantee is a Nonprofit Organization/Agency, it will maintain its "Active" status with the California Secretary of State, maintain its "Current" status with the California Attorney General's Registry of Charitable Trusts, and maintain its federal and State of California tax- exempt status. If the Grantee subcontracts with a Nonprofit as part of this Grant Agreement, the Grantee shall ensure the Nonprofit will maintain its "Active" status with the California Secretary of State, maintain its "Current" status with the California Attorney General's Registry of Charitable Trusts, and maintain its federal and State of California tax-exempt status.
d. All of the information in its Grant Application and all materials submitted are true and accurate.
N. AIR OR WATER POLLUTION VIOLATION
1. Under the state laws, the Grantee shall not be: (1) in violation of any order or resolution not subject to review promulgated by the State Air Resources Board or an air pollution control district; (2) subject to cease and desist order not subject to review issued pursuant to Section 13301 of the Water Code for violation of waste discharge requirements or discharge prohibitions; or (3) finally determined to be in violation of provisions of federal law relating to air or water pollution. 17 TERMS AND CONDITIONS
0. GRANTEE NAME CHANGE
1. Grantee agrees to immediately inform the State, in writing, of any changes to the name of the person within the Organization/Agency with delegated signing authority.
2. An Amendment is required to change the Grantee's name, as listed on this Grant Agreement. Upon receipt of legal documentation of the name change, the State will process the Amendment. Payment of invoices presented with a new name cannot be paid prior to approval of said Amendment.
P. RESOLUTION
1. A county, city, district, or other local public body shall provide the State with a copy of a resolution, order, motion, or ordinance of the local governing body, which by law, has authority to enter into a Grant Agreement, authorizing execution of the Grant Agreement.
Q. PAYEE DATA RECORD FORM STD. 204
1. This form shall be completed by all non-governmental Grantees.
R. FINANCIAL INFORMATION SYSTEM FOR CALIFORNIA GOVERNMENT AGENCY TAXPAYER ID FORM
1. This form shall be completed by all Grantees.
S. CONFLICT OF INTEREST
1. This section serves to make the Grantee aware of specific provisions related to current or former state employees. If Grantee has any questions regarding the status of any person rendering services or involved with the Grant Agreement, the Grantee shall contact the State (California Highway Patrol, Impaired Driving Section, Cannabis Grants Unit) immediately for clarification.
2. Current State Employees:
a. No officer or employee shall engage in any employment, activity, or enterprise, from which the officer or employee receives compensation or has a financial interest, and which is sponsored or funded by any state agency, unless the employment, activity, or enterprise is required, as a condition of regular state employment. b. No officer or employee shall contract on their own behalf, as an independent Grantee, with any state agency to provide goods or services.
3. Former State Employees:
a. For the two-year period from the date they left state employment, no former state officer or employee may enter into a contract in which they engaged in any of the negotiations, transactions, planning, arrangements, or any part of the decision-making process relevant to this Grant Agreement while employed in any capacity by any state agency. b. For the I 2-month period from the date they left state employment, no former state officer or employee may enter into a contract with any state agency if they were employed by that state agency in a policy-making position in the same general subject area as the proposed Grant Agreement within the 1 2-month period prior to their leaving state service.
4. The authorized representative of the Grantee Organization/Agency, named within this Grant Agreement, warrants their Organization/Agency and its employees have no personal or financial interest and no present or past employment or activity, which would be incompatible with 18 TERMS AND CONDITIONS
participating in any activity related to this Grant Agreement. For the duration of this Grant Agreement, the Organization/Agency and its employees will not accept any gift, benefit, gratuity or consideration, or begin a personal or financial interest in a party who is associated with this Grant Agreement.
5. The Grantee Organization/Agency and its employees shall not disclose any financial, statistical, personal, technical, media-related, and/or other information or data derived from this Grant Agreement, made available for use by the State, for the purposes of providing services to the State, in conjunction with this Grant Agreement, except as otherwise required by law or explicitly permitted by the State in writing. The Grantee shall immediately advise the State of any person(s) who has access to confidential Project information and intends to disclose that information in violation of this Grant Agreement.
6. The Grantee will not enter into any Grant Agreement or discussions with third parties concerning materials described in paragraph five (5) prior to receiving written confirmation from the State that such third party has a Grant Agreement with the State, similar in nature to this one.
7. The Grantee warrants that only those employees who are authorized and required to use the materials described in paragraph 5 will have access to them.
8. If the Grantee violates any provisions in the above paragraphs, such action by the Grantee shall render this Grant Agreement void.
T. EQUIPMENT-USE TERMS
1. The Grantee agrees any equipment purchased under this Grant Agreement shall be used for impaired driving efforts.
2. Law Enforcement Projects:
a. Oral Fluid Drug Screening Devices and Cannabis/Marijuana Breath Testing Equipment - The Grantee agrees to ensure all personnel using road-side drug testing equipment, including oral fluid drug testing devices and/or cannabis/marijuana breath testing devices, purchased with grant funds from this Grant Agreement, are trained to recognize alcohol and drug impairment.
At a minimum, personnel using these devices should receive Standardized Field Sobriety Testing training. These personnel are also encouraged to attend Advanced Roadside Impaired Driving Enforcement and Drug Recognition Evaluator training. Prior to using these devices, the Grantee agrees to obtain permission from their local prosecutor's office, establish a policy ensuring appropriate use, and require the staff using these devices to receive appropriate training, which may include training from the manufacturer. This will help ensure the equipment is used appropriately. The Grantee shall advise the State (California Highway Patrol, Impaired Driving Section, Cannabis Grants LJnit) of any legal challenges or other items of significance that may affect the use or legal acceptance of these devices.
Additionally, the State may request additional information about the performance of these devices, including information about their use, accuracy, and feedback from personnel using the devices.
b. Law Enforcement Vehicles - The Grantee agrees any law enforcement vehicles purchased with Grant funds, from this Grant Agreement, will be primarily used for the enforcement of driving under the influence laws and/or providing public education, related to the dangers of driving under the influence. Additionally, any vehicle purchased using funds from this Grant Agreement shall comply with all California Vehicle Code and California Code of Regulation requirements. The State may require the Grantee to mark these vehicles with a decal and/or emblem, indicating the vehicle is used for driving under the influence enforcement. 19 Schedule A
South Gate Police Department
The Grantor determined awards and adjustments based on the Project's merit, operational scale, compliance with the Request for Application (RFA), and program regulations. Certain activities or budget items proposed in Schedule A may have been deemed ineligible for funding. The final, binding list of authorized activities and expenses is set forth in Schedule B - Detailed Budget Estimate.
Project Description
SGPD has seen a steady rise in collisions caused by intoxicated drivers. This is according to statistical data involving alcohol and drugs since the legalization of marijuana. The SGPD impaired driving enforcement project strategy consists of three points: Training, Education, and enforcement. SGPD will promote public awareness of the dangers of DUI/DLIID. Enforcement of D.U.I. laws pertaining to DUI/DUID and associated collision factors will reduce the number of citizens killed or injured in collisions.
We will enhance public safety and aim to reduce the number of persons killed or injured in collisions involving alcohol, drugs, and marijuana. SGPD will distribute informative safety material to drivers of all ages about the effects of alcohol, drugs, and marijuana on driving. We will utilize social media and community presentations to heighten awareness. Project funds will be used for D.U.I. saturation patrol overtime salaries and a dedicated D.U.I. enforcement vehicles to carry out enforcement efforts. SGPD will also provide police officers the needed training to recognize the signs and symptoms of impairment. Funds will be used to train additional police officers to recognize the signs and symptoms of impairment for DUI investigations. Community outreach can be accomplished through social media outreach to highlight awareness and purchase equipment to support our DUI enforcement and prosecution efforts. During this time police officers will gain proper training and experience in identifying drivers under the influence of alcohol, drugs, and marijuana. By accomplishing this we are able to better serve our communities as we improve public safety.
Problem Statement
The South Gate Police Department is facing a significant public safety crisis stemming from an increase in impaired driving incidents and the abuse of cannabis within the community. The South Gate Police Department has seen an overall increase in the number DUI related collisions dating back to 2020. 2020-(68 DUI/DUID related collisions and 3 fatal collisions with 1 being DUI/DUID related) 2021-(100 DUI/DUID related collisions and 8 fatal collisions with one being DUI/DUID related) 2022-(94 DUI/DUID related collisions and 4 fatal collisions with no DUI/DUID collisions being reported) 2023- (138 DUI/DUID related collisions and 7 fatal collisions with 2 of them being DUI/DUID related fatalities) 2024-(80 DLII/DUID related collisions and 5 fatal collisions with 3 of them being DUI/DUID related fatalities) 2025-(126 DUI related collisions and 7 fatal collisions with 4 of them being DUI/DLIID related fatalities) This has shown a steady increase in DUI/DUID related collisions and the dangers the community faces.
Further, with the data provided by the Office of traffic safety for the 2023 and 2022 calendar year, the City of South Gate ranks 9th (2023) and 1 5th (2022) out of 103 California cities. Both years show that South Gate falls in the top tier of California cities for DUI/DLIID related collisions per person. A combination of education and enforcement is critical to protect the members of this community. In previous years staffing shortages made it difficult to field DLII enforcement patrols, however, with staffing levels at 75 (Full staffing at 81). While this has not entirely eliminated mandatory assigned patrol overtime, it has drastically decreased the number of officers forced to work patrol overtime freeing up resources to deploy locally for enforcement.
In addition, the community is grappling with a rise in cannabis abuse, particularly among juveniles. SGPD has made multiple arrests related to the illegal sale of cannabis vape pens near middle and high schools.
These investigations have uncovered links to other criminal activities, such as possession of stolen vehicles and weapons. The increased use of cannabis products among juveniles has resulted in unsafe behaviors, including impaired operation of bicycles, e-bikes, scooters, skateboards, pocket bikes, and vehicles, further endangering public safety.
10 20
Schedule A
This multifaceted issue highlights the urgent need for community education, enhanced officer training, and increased enforcement efforts to address impaired driving and cannabis abuse. Without strategic intervention, the safety of SGPD's community will continue to be at risk.
Performance Measures/Scope of Work (Proposed Solution) The South Gate Police Department's Impaired Driving Enforcement Grant aims to save lives and ensure the long-term benefits of its efforts. By increasing public awareness and implementing targeted enforcement, the SGPD seeks to achieve a 10% reduction in both DUI-related incidents and fatal collisions.
To achieve this goal, the SGPD will conduct 28 DUI enforcement operations throughout the grant year with 7 per quarter (every three months). These operations will focus on identifying and apprehending impaired drivers to reduce injuries and fatalities. Officers involved in these operations will utilize specialized training, including Standardized Field Sobriety Test (SFST) and Advanced Roadside Impaired Driving Enforcement (ARIDE) techniques, to conduct thorough DUI/DUID investigations.
Overtime salaries will support these operations, with each detail involving a single vehicle staffed by one officer to increase coverage and visibility. These enforcement efforts will primarily occur during nighttime hours or other high-risk periods for impaired driving, with each operation lasting eight hours. The goal is to conduct seven enforcement operations per quarter throughout the grant period.
A dedicated marked "DUI Enforcement" vehicle will facilitate these efforts in addition to marked police motorcycles. These vehicle will allow officers to effectively locate and apprehend impaired drivers while addressing key collision factors such as speeding, unsafe turning movements, and failure to yield. By providing officers with the tools necessary for targeted enforcement, the vehicle and motorcycles will enhance the department's ability to reduce DUI-related incidents and fatalities while reinforcing its commitment to community safety.
To accomplish this, the SGPD intends to conduct a total of 28 DLII saturation patrols (Q1 =7, Q2=7, Q3=7, Q4=7) and aim to reduce DUI/DUID deaths and DUI/DUID related crashes by IO%.
I Intoxilyzer 9000 breath machine would be purchased to assist in gathering evidence against DUI/DUID drivers that can be used in court (Q1 =purchase, Q2= receive, upon completion of training for certified users, the machine will be in use in Q3 and Q4). The current intoxilyzer breath machine at SGPD has not been functioning for nearly a year, requiring officer to seek other avenues to obtain usable evidence. 1 BMW police motorcycle to be used in traffic enforcement efforts and to be used in patrol directed at locating DUI and DUID drivers. Police motorcycles are more agile and can more easily observe violations (Q1 =Obtain required quotes, Q2 place order, Q3 receive the motorcycle, Q4 deploy the motorcycle in the field for use) 2 educational presentations at local high schools (Q4=2) Aim to contact 100 students specifically around the time of prom and graduation. Education will be focused on the dangers of DUI and DUID driving and the related consequences.
Project Performance Evaluation
The South Gate Police Department will analyze data collected during the grant to complete a final evaluation in the fourth quarter. This evaluation will summarize the grants accomplishments, challenges and key activities. It will also include an assessment of whether the goals of the objective were met, exceeded, or, if not achieved, an explanation why. SGPD will use Crossroads Analytics Software and in-house RMS software to track collision and enforcement data. This data will allow for comparisons between the grant year and previous years, helping to identify trends and assess the grant's potential impact. Statistics on DUI arrests, DUI-related traffic collisions, injury-related DUI collisions, and DUI traffic fatalities will also be compiled for quarterly evaluations.
21 Schedule A
Program Sustainability
The South Gate Police Department is committed to reducing reliance on future grant funding by building sustainable enforcement and prevention capabilities within its traffic division. As staffing levels improve, the department's long-term plan is to fully staff the traffic division with four motor officers, two DUI enforcement vehicles, and eight community service officers. A fully staffed traffic division will enable SGPD to conduct consistent and proactive DUI enforcement efforts without the need for external funding. With these resources in place, the traffic division will be able to focus on targeted enforcement strategies such as saturation patrols, sobriety checkpoints, and community outreach programs, ensuring continued efforts to reduce DUI-related incidents and fatalities. Additionally, community service officers will play a crucial role in supporting non- enforcement duties, allowing sworn officers to dedicate more time to DUI enforcement. The timeline for achieving this objective is directly tied to improvements in staffing levels. As recruitment and retention strategies take effect, the SGPD anticipates incremental progress over the next three to five years. During this period, the department will prioritize internal training for officers, ensuring they are equipped with the skills necessary to maintain and expand DUI enforcement efforts independently of grant funding. This transition plan emphasizes self-sufficiency while maintaining a focus on roadway safety, ensuring the community continues to benefit from effective DUI enforcement and prevention measures even in the absence of significant grant support.
Administrative Support
The South Gate Police Department has extensive experience successfully managing various grants, even amidst challenges such as a reduction in police personnel. The department has consistently maintained accurate record-keeping, data entry, and statistical reporting to ensure the success of its grant-funded projects. SGPD has efficiently handled the processing of all financial records and will continue to manage and retain records for the Office of Traffic Safety, Alcohol Beverage Control and any other entity we enter into an agreement with. With a dedicated and motivated staff, the South Gate PD is well-prepared to undertake the tasks necessary to reduce DUI incidents and enhance public safety within the community. The department's personnel and physical resources are well-suited to implement the project effectively and achieve its objectives.
22 Schedule B
Detailed Budget Estimate
Award Number , Organization/Agency
'- ----' -'-Tot-al-A-m-ou-n-t ---- -li30933
. I
South Gate Police Department $98,790.00
Cost Category Line Item Name Total Cost to Grant
Other Direct Costs
Registration Fees
Intoxilyzer Trainer and Maintenance Course
$3,260.00
$1,300.00
Category Sub-Total $4,560.00
Personnel
DUI Saturation Patrol
SFST Training - Attend
ARIDE Training - Attend
$23,040.00
$1 ,:_oo.oo
$800.00
Category Sub-Total $25,040.00
Travel
Conference Travel
Intoxilyzer Trainer and Maintenance Course
- Attend Travel
$740.00
$2,700.00
Category Sub-Total $3,440.00
Equipment
DUI Motorcycle (Includes Outfitting &
Decals)
DUI Intoxilyzer Breath Machine
$52,750.00
$13,000.00
Category Sub-Total $65,750.0(]
GrantTotal $98,790.00
13 23
Schedule B-I
Budget Narrative
South Gate Police Department
Prior to engaging in grant-funded Saturation Patrols, DUI Checkpoints, or other enforcement activities in areas where the grantee does not have primary traffic jurisdiction, the grantee should consult with the agency having primary traffic jurisdiction.
Other Direct Costs
Registration Fees
$3,260.00
IACP CONFERENCE REGISTRATION: $815 X4 0FFICERS = $3, 260 Intoxilyzer Trainer and Maintenance Course
$1,300.00
Intoxilyzer maintenance and instructor course/ Owensboro Kentucky 2 personnel attending training (1 traffic supervisor, 1 traffic officer) Course registration= $650 x 2 ($1300)
Personnel
ARIDE Training - Attend
$800.00
The goal is to send one officer to ARIDE training (16 hours). This will be attended by South Gate Police Officers who will attend at their regular rate of pay and not on overtime and will not include benefits. $120.00/hr.
SFST Training - Attend
$1,200.00
The goal is to send 1 officer to SFST training (24 hours) This will be attended by South Gate Police Officers who will attend at their regular rate of pay and not on overtime and will not include benefits. $120.00/hr.
DUI Saturation Patrol
$23,040.00
24 DUI saturation patrols will occur. Each includes one officer for an 8-hour shift at an approximate cost of $960 per shift ($120/Hr.). These are to be paid at the officers OT rate in addition to Medicare costs at 1.45%. No other benefits are being requested for reimbursement. Officers will be scheduled to work an 8-hour shift as a solo officer conducting DUI/DUID enforcement.
Travel
Conference Travel
$740.00
IACP Conference TRAVEL (46 miles round trip from 8620 California Ave. South Gate Ca.) 3 Police Officers and 1 Sergeant will be attending with the below estimated costs:
Per diem: $22 per meal X 4 meals X 3days = $264
Parking: $47 per day x 4 Personnel X 3 days=$564
Total= $1230.60
REIMBURSEMENT WILL BE AT CALIFORNIA STATE (CALHR) RATES. ANY COSTS BEYOND STATE TRAVEL RATES WILL BE THE RESPONSIBILITY OF THE GRANTEE.
24 Schedule B-1
Budget Narrative
South Gate Police Department
Prior to engaging in grant-funded Saturation Patrols, DUI Checkpoints, or other enforcement activities in areas where the grantee does not have primary traffic jurisdiction, the grantee should consult with the agency having primary traffic jurisdiction.
Intoxilyzer Trainer and Maintenance Course - Attend Travel $2,700.00
Intoxilyzer maintenance and instructor course/ Owensboro Kentucky 2 personnel attending training (1 traffic supervisor, 1 traffic officer) Flight $900x 2 est. ($1800)
Hotel 4 nights ($1 000)
Per diem (Meals) @ $24/meal per person X 4 days = ($576) Total estimated cost $4676 (average to be covered by the city) REIMBURSEMENT WILL BE AT CALIFORNIA STATE (CALHR) RATES. ANY COSTS BEYOND STATE TRAVEL RATES WILL BE THE RESPONSIBILITY OF THE GRANTEE.
Equipment
DUI Motorcycle (Includes Outfitting & Decals)
$52,750.00
2025 BMW R1300 police motorcycle: $37,000
Police motorcycle decals: $750.00
Costs to fully outfit the police motorcycle with lights, siren, PA, Radio, gun rack, Lidar/radar and Bluetooth connection kit for the radio/helmet. :$15,000
" NOTE: CGU WILL ONLY COVER I YEAR RADIO ESSENTIAL SERVICE- AGENCY IS RESPONSIBLE FOR
REMAINING WARRANTY COSTS
DUI Intoxilyzer Breath Machine
$13,000.00
DUI Intoxilyzer Breath Machine unit cost $13,000.00
Price includes tax and shipping costs
25 Attachment B
Agenda Bill 7/28/26
State of CaltFomia-Transportation Agency GAVIN NEWSOM, Governor
DEPARTMENT OF CALIFORNIA HIGHWAY PATROL
601 North 7th Street
Sacramento, CA 95811
(916) 843-4360
(800) 735-2929 (TT/TDD)
(800) 735-2922 (Voice)
June 30, 2026
File No.: 060.l7344.l9741
Sergeant Steve Thoreson
South Gate Police Department
8620 California Avenue
South Gate, CA 90280
Dear Sergeant Thoreson:
On behalf of the California Highway Patrol (CHP), it is my pleasure to inform you, the South Gate Police Department, is conditionally approved for Cannabis Tax Fund Grant Program (CTFGP) funding in the amount of $98,790.00. The purpose of this grant funding is to help your agency reduce and mitigate the impacts of impaired driving in your community.
The official Grant Agreement for signature is forthcoming. In order to execute your Grant Agreement, please provide documentation from a local governing body, authorizing your organization to receive this grant funding, to the Cannabis Grants Unit, by email at CGUGrants@,chp.ca.gov, as soon as possible.
Refer to California Code of Regulations Title 13, Division 2, Chapter 13, Section 1890.13(g) for additional information.
The CHP looks forward to partnering with you and your agency on this project in an effort to make California's roadways a safer place to travel. If you have any questions, please feel free to contact the Cannabis Grants Unit at (916) 843-4360.
Sincerely,
et For/
M. W. HEADRICK, Chief
Enforcement and Planning Division
Safety, Service, and Security ,4n Intertatiotxally AccreditedAgency 26 Offfi s t.if till:'
3cThutt1 Gate City Clsil
Item No. 3
liJl ';' 3 7026
FILED
13'f,,. Ciffl of South Gate
CITY COUNCIL
AGENDA BNLL
For the Regular Meeting of: July 28, 2026
Originating Department: City Manager's Office
Cil Manager:
far Rob Houstotx far Rob Houston
SUBJH,CT: CONSmERATION OF ADOPTING A RESOLUTION ESTABIJSHmG A FIVE-YEAR FISCAL REVIEW AND ACCOUNTABILITY COMMffMENT IN CONNH,CTIONWffH THE UTnJTY USER8 TAX MF,ASW ON THE NOVEMBER 3, 2026 BALLOT
PURPOSE: To adopt a resolution establisMng a scheduled public review of the City's finances during the fifth full fiscal year of Utility Users Tax (UUT) collections, including consideration at that time of whether the UUT rate should remain unchanged, be reduced under existing ordinance authority, or be submitted to the voters for adjustment or repeal. The UUT measure approved for the November 3, 2026 ballot is referred to in this report as the "Measure." This item responds to the City Council's direction of July 14, 2026, and supplements the April 14, 2026, and June 9, 2026 Agenda Bills on the Measute.
RF,COMMENDED ACTIONS: The City Council will consider:
a. Adopting a Resolution of the City Council of the City of South Gate, California, establishing a Five-Year Fiscal Review and Accountability commitment in connection with the Utility Users Tax measure at the November 3, 2026 General Municipal Election, SUMMARY: On JuIy 14, 2026, the City Council considered whether a sunset clause should be added to the Measure and provided direction to Ieaye the Measure unchanged and to return with a resolution establishing a scheduled public review of the City's finances. The proposed resolution implementsthatdirection, Itschedulesacomprehensivepublicreviewofthe City'sfinancesduring the fifth full fiscal year of UUT collections, expected to be Fiscal Year 2031-32, with defined minirnim reviewelements, anoticedpublic process, continued annual reporting, and open-session consideration ofwhether futther actionregarding the UUT is warranted. The resolution's reporting and review obligations become operative only upon certification of election results confirming voter approval of the Measure onNovember 3, 2026.
FISCAL IMPACT: Adoption of the resolution requires no immediate additional appropriation, Annual reporting is expected to be absorbed within the Administrative Services Department's regular work program. The Five-Year Fiscal Review will require staff resources and may require outside professional services or public outreach expenditures, depending on the scope approved at 1 27
that time. Any future ballot measure would be presented separately to the City Council with an estimate of election and implementation costs.
ANALYSIS: On June 9, 2026, the City Council adopted the amended and restated resolution and ordinance placing the Measure before the voters at the rate of 8 percent. On July 14, 2026, at the request of members of the City Council, staff presented an analysis of whether a sunset clause should be added, addressing the duration of the City's structural deficit, the fiscal effect of a scheduled expiration of the revenue, potential borrowing and credit considerations, and the practice of other Los Angeles County jurisdictions. Following that discussion, the City Council provided direction to leave the Measure unchanged and to return with a resolution outlining a future review of the city's finances and the UUT.
What the Resolution Provides
1. Five-Year Fiscal Review. The City Council will conduct a comprehensive public review of the City's finances during the fifth full fiscal year of {JUT collections; a partial fiscal year in which collections first commence does not count as a full fiscal year. The review will be presented at a noticed public meeting no later than April 30, 2032, so the City Council has time to deliberate and, if it chooses, to act before applicable election deadlines. Based on the anticipated commencement of collections, the review is expected to occur during Fiscal Year 2031-32.
2. Minimum Review Elements. The review will include, at a minimum: UUT revenues collected compared to projections; the condition of the General Fund, including structural balance, reserve levels measured against the City's adopted reserve policies, and the five- year forecast; the status of General Fund services restored, sustained, or enhanced following implementation of the Measure, including the service priorities identified in the City's adopted budgets and public financial reports; and whether the UUT rate remains appropriate to the City's financial condition and service needs. The review will be based on audited results through the most recently completed fiscal year and current-year estimates.
3. Consideration of Future Action. As part of the review, the City Council will consider whether the UUT rate should remain unchanged, be reduced pursuant to any authority provided by the UUT ordinance, or be submitted to the voters for adjustment or repeal, as required by law. The UUT ordinance authorizes the City Council to amend the ordinance without an election except for amendments that would increase the tax within the meaning of Governrnent Code section 53750(h); any increase above the voter-approved maximum would require voter approval under Article XIII C of the California Constitution.
4. Public Process. The staff report and supporting analysis will be published on the City's website in advance of the meeting, and members of the public will have the opportunity to comment.
5. Annual Reporting. In addition to the five-year review, the Director of Administrative Services, or designee, will report aru'iually on UUT collections and the condition of the General Fund through the budget process and the City's audited financial statements.
6. General Tax Status. Nothing in the resolution restricts UUT proceeds to a specific purpose or changes the Measure's status as a general tax available for general governmental purposes.
2 28
7. Voter Rights Preserved. Independent of any action by the City, the voters retain the power under Article XIII C of the California Constitution to reduce or repeal a local tax by initiative at any time.
8. Effective and Operative Dates. The resolution is effective upon adoption; its reporting and review obligations become operative only upon certification of election results confirming voter approval of the Measure. If the Measure is not approved, those obligations do not become operative.
Relationship to the Ballot Measure
The proposed resolution implements the City Council's July 14 direction by establishing a scheduled public fiscal review without changing the rate, duration, or other provisions of the Measure already approved for the ballot. The review will provide the City Council and the public with updated financial information and a formal opportunity to consider whether further action is warranted.
Procedural Considerations
Adoption of the resolution does not amend the UUT ordinance, ballot question, tax rate, or duration of the Measure previously approved for the November 3, 2026 ballot. The resolution will become effective upon adoption, but the annual reporting and Five-Year Fiscal Review requirements will become operative only upon certification of election results confirming voter approval of the Measure.
Nature of the Commitment
The resolution establishes a formal policy and administrative direction that will remain in effect unless amended or repealed by a future City Council in open session. It does not predetermine the outcome of the review or require the placement of a fiiture ballot measure. Its purpose is to establish a scheduled, transparent process for evaluating the City's financial condition and the continued appropriateness of the UUT rate.
ATTACHMENT: A. Five-Year Fiscal Review and Accountability Resolution 3 29
Attachment A
Agenda Bill 7/28/26
RESOLUTION NO.
CITY OF SOUTH GATE
LOS ANGELES COUNTY, CALIFORNIA
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTH GATE,
CALIFORNIA, EST ABLISHING A FIVE-YEAR FISCAL REVIEW AND
ACCOUNT ABILITY COMMITMENT IN CONNECTION WITH THE UTILITY USERS TAX MEASURE AT THE NOVEMBER 3, 2026 GENERAL
MUNICIPAL ELECTION
WHEREAS, the City of South Gate ("City") faces an ongoing structural General Fund deficit in which recurring expenditures, including pensions, insurance, salaries, and State- mandated costs, exceed recurring revenues;
WHEREAS, on April 14, 2026, the City Council adopted the resolution and ordinance to place a Utility Users Tax measure before the voters at the November 3, 2026 General Municipal Election, and on June 9, 2026, the City Council adopted the amended and restated resolution and ordinance establishing the rate of the measure at 8 percent (the "Measure"); WHEREAS, on July 14, 2026, the City Council received and considered a staff analysis regarding whether a sunset clause should be added to the Measure, which analysis addressed the ongoing nature of the City's structural deficit, the fiscal consequences of a scheduled expiration of approximately $10.4 million in estimated annual revenue, potential effects on the City's financial flexibility and cost of borrowing, and the practice of other Los Angeles County jurisdictions; WHEREAS, following that discussion, the City Council provided direction to leave the Measure unchanged and directed staff to return with a resolution outlining a future review of the city's finances and the UUT, with consideration at that time of whether further action regarding the Utility Users Tax is warranted;
WHEREAS, the City Council finds that accountability to the taxpayers of South Gate is paramount, and that a scheduled, comprehensive, and public review of the City's finances provides transparency and a scheduled re-examination of the Utility Users Tax while preserving the ability of the City Council and the community to respond to actual conditions; and WHEREAS, independent of any action of the City, the voters retain the power under Article XIII C of the California Constitution to reduce or repeal a local tax by initiative.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SOUTH GATE, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:
30 SECTION 1. Recitals. The City Council finds that the foregoing recitals are true and correct and are incorporated herein by this reference.
SECTION 2. Five-Year Fiscal Review. The City Council shall conduct a comprehensive public review of the City's finances (the "Five-Year Fiscal Review") during the fi'fth full fiscal year of Utility Users Tax collections. A partial fiscal year in which collections first commence shall not count as a full fiscal year. The Five-Year Fiscal Review shall be presented at a noticed public meeting of the City Council no later than April 30, 2032, so that the City Council has sufficient time to deliberate and, if it so chooses, to act before applicable election deadlines. Based on the anticipated commencement of collections, the Five-Year Fiscal Review is expected to occur during Fiscal Year 2031-32.
SECTION 3. Scope of Review. The Five-Year Fiscal Review shall address the following:
A. Utility Users Tax revenues collected in each fiscal year, compared to the projections presented to the City Council and to the voters;
B. The condition of the General Fund, including structural balance between recurring revenues and recurring expenditures, reserve levels measured against the City's adopted reserve policies, and the City's five-year financial forecast; C. The status of General Fund services restored, sustained, or enhanced following implementation of the Measure, including the service priorities identified in the City's adopted budgets and public financial reports; and D. Whether the rate of the Utility Users Tax remains appropriate to the City's financial condition and service needs.
The Five-Year Fiscal Review shall be based on audited financial results through the most recently completed fiscal year and estimates for the then-current fiscal year.
SECTION 4. Consideration of a Future Ballot Measure. As part of the Five-Year Fiscal Review, the City Council shall consider whether the rate of the Utility Users Tax should remain unchanged, be reduced pursuant to any authority provided by the Utility Users Tax ordinance, or be submitted to the voters for adjustment or repeal, as required by law. Any increase above the voter-approved maximum rate would require voter approval under Article XIII C of the California Constitution.
SECTION 5. Public Process. The staff report and supporting analysis for the Five-Year Fiscal Review shall be published on the City's website in advance of the meeting in accordance with the t;
31 City's agenda publication practices, and members of the public shall have the opportunity to comment.
SECTION 6. Annual Reporting. In addition to the Five-Year Fiscal Review, the Director of Administrative Services, or designee, shall report annually on Utility Users Tax collections and the condition of the General Fund through the City's budget process and the City's aru'iual audited financial statements.
SECTION 7. General Tax Status. Nothing in this Resolution restricts Utility Users Tax proceeds to a specific purpose or changes the Measure's status as a general tax available for general governrnental purposes.
SECTION 8. Voter Rights Preserved. Nothing in this Resolution limits, or is intended to limit, the power of the voters under Article XIII C of the California Constitution to reduce or repeal a local tax by initiative at any time.
SECTION 9. Effective Date; Operative Date. This Resolution shall be effective upon its adoption. The obligations set forth in Sections 2 through 6 shall become operative only upon certification of election results confirming voter approval of the Measure at the November 3, 2026 General Municipal Election. If the Measure is not approved, those obligations shall not become operative and this Resolution shall be of no further force or effect.
SECTION 10. Certification. The City Clerk shall certify to the adoption of this Resolution.
PASSED, APPROVED, and ADOPTED this 28'h day of July 2026.
CITY OF SOUTH GATE:
B7:
Joshua Barron, Mayor
ATTEST:
By:
Yodit Glaze, City Clerk
(SEAL)
APPROVED AS TO !(!P:
By: l)
Raul F. Salinas, City Attorney
32 O'Jice III{111P
Soulli Gale City Cle: t
Item No. 4
JUL 2 3 2021>
FILED
ol:3'l a-, Ciffl of South Gate
CITY COUNCIL
AGENDA BNLL
For the Regular Meeting of: July 28, 2026
Originating Departtnent: Public Works
CityManager.
Arturo Cervarites far Rob Houston
StJBJECT: AMENDMENT N0. 1 TO CONTRACT N0. 2026-28-AC WITH HDR ENGINEERING, INC. FOR THE ACTIVE TRANSPORTATION PROGRAM CYCLE 8
GRANT APPLICATION SUPPORT SERVICES
PURPOSE: To approve Amendment No. 1 to Contract No. 2026-28-AC ('@Agreement") with HDR Engineering, Inc ("HDR") to provide additional grant application support services for the Active Transportation Program (ATP) Cycle 8 applications forthe Southern Avenue Multimodal Bridge Project and the Atlantic Avenue Corridor Connectivity Project..
RFJCOMMENDED ACTIONS: The City Council will consider:
a. ApprovingAmendmentNo.1toContractNo.2026-28-AC("AmendmentNo.l")withHDRto fund additional professional services for Active Transportation Program Cycle 8 Grant Application Support Services, for anot to exceed amount of $11,899; b. Appropriating $11,899 in Measure R funds to cover for the Active Transportation Program grant application; and additional support services
c, Authorizing the Mayor to execute Atnendment No. l in a form acceptable to the City Attorney, FISCAL IMPACT: There is no impact to the General Fund. Amendnnent No. 1 is in the amount of $11,899 and it is proposed to be funded with Measure R Funds recommended to be appropriated. The total budget is summarized below.
Si#ices-_ -' 4 - ' -. -_ - -: _-I_Amount -. Souree of Fiinds,_ ContractNo, 2026-28-AC $39,874 Proposition C
Amendment No. 1 $11,899 Measute R
Total $51,773
ANALYSIS: On April 21, 2026, the City administratively approved Contract No. 2026-28-AC with HDR to provide professional grant application support services for the Active Transportation Program ("ATP") Cycle 8 Grant Funding Program. The Agreement authorized HDR to ptepare two ATP Cycle 8 grant applications for the Atlantic Avenue Corridor Connectivity Project and the Southern Avenue Multitnodal Bridge Project in the amount of $39,874. HDR's original scope of work included project team meetings, preparation of the ATP grant application packages, and graphics support. The agreement assumed the City would provide the project definition, concept design, project scope, budget 1 33
support. The agreement assumed the City would provide the project definition, concept design, project scope, budget information, and existing conditions data, with no additional project development, technical analysis, or conceptual engineering required.
During the preparation of the ATP Cycle 8 applications, City staff determined that additional consultant services were necessary to strengthen the applications and better define the proposed improvements and ATP-eligible project costs. The additional work was requested by the City to improve the competitiveness of the applications and complete the final submittal packages.
For the Southern Avenue Multimodal Bridge Project application, HDR provided additional conceptual engineering, refined project cost estimates, identified ATP-eligible costs, prepared ATP cost templates, updated project layouts and exhibits, and completed the application submittal. For the Atlantic Avenue Corridor Connectivity Project application, HDR prepared concept exhibits for the proposed improvements, developed a conceptual bus station layout at Tweedy Boulevard/Pinehurst Avenue, refined cost estimates and ATP-eligible costs, prepared ATP cost templates, and completed the final application submittal. Both ATP Cycle 8 grant applications were submitted on June 22, 2026.
Amendment No. 1 adds 76 hours of professional services and increases the contract amount by $11,899, from $39,874 to a revised not-to-exceed amount of $51,773. The amendment formalizes the additional services completed by HDR to strengthen and finalize the ATP Cycle 8 grant applications.
BACKGROUND: The Active Transportation Program (ATP) Cycle 8 Grant Funding Program provided the City with an opportunity to pursue competitive funding for pedestrian, bicycle, transit access, and multimodal connectivity improvements. In March 2026, the City solicited proposals from qualified consultants to prepare two ATP Cycle 8 grant applications to pursue funding for the Atlantic Avenue Corridor Connectivity Project and the Southern Avenue Multimodal Bridge Project. Following a Request for Proposals (RFP) process, the City administratively awarded Contract No. 2026-28-AC to HDR Engineering, Inc, to provide professional grant application support services, in the amount of $39,874.
The proposed Atlantic Avenue Corridor Connectivity Project included improvements intended to strengthen connectivity along Atlantic Avenue and nearby corridors, including improved access to South Gate Park, future transit service, Wright Road median improvements, and evaluation of Southern Avenue from Pinehurst Street to the Los Angeles River.
The proposed Southern Avenue Multimodal Bridge Project builds upon a previously submitted ATP grant application and advances plans for a new multimodal bridge along Southern Avenue that would accommodate pedestrians, bicyclists, and transit users. The project would create a new connection between Atlantic Avenue and Garfield Avenue over the Los Angeles River and I-710 Freeway, improving access to neighborhoods, parks, and future transit.
The ATP Cycle 8 applications for the Southern Avenue Multimodal Bridge Project and the Atlantic Avenue Corridor Connectivity Project were submitted on June 22, 2026. Because the applications have already been submitted, Amendment No. 1 formalizes the additional services requested by the City and performed by HDR to complete the final application materials, project exhibits, cost estimate refinements, ATP-eligible cost identification, and application portal submittals. 2 34
ATT ACHMENTS:
A. Proposed Amendment No. I
B. Fee Proposal
C. Contract No. 2026-28-AC*
D. Maps
*Each document is available for review through the Office of the City Clerk.
KT:ky
35 Attachment A
Agenda Bill 7/28/26
Amendment No. 1
to Contract No. 2026-28-AC
AMENDMENT N0. 1 TO CONTRACT N0. 2026-28-AC FOR
PROFESSIONAL ENGINEERING SERVICES BETWEEN THE CITY OF SOUTH GATE AND HDR ENGINEERING INC.
This AmendmentNo. lto ContractNo. 2026-28-AC forProfessional Engineering Services ("Amendment No. 1") is made and entered into on July 28, 20261 by and between the City of South Gate, a municipal corporation ("City"), and HDR Engineering, Inc., a California corporation ("Consultant"). City and Consultant are sometimes hereinafter individually referred to as a "Party" and collectively as "Parties."
RECIT ALS
WHEREAS, onApril21, 2026,the City Council approved ContractNo. 2026-28-AC with Consultant ("Agreement") for Professional Engineering Services for Active Transportation Program Cycle 8 Grant Application Support Services, including preparation of grant applications for the Atlantic Avenue Corridor Coru'iectivity Project and the Southern Avenue Multimodal Bridge Project, in the amount of Thirty-Nine Thousand Eight Hundred Seventy-Three and Seventy-Eight Cents ($39,873.78); and
WHEREAS, the City and Consultant desire to execute Amendment No. 1 to Contract No. 2026-28-AC for Professional Engineering Services to increase the contract amount by Eleven Thousand Eight Hundred Ninety-Nine Dollars and Thirty-Nine Cents ($11,899.39), for a revised total contract amount not to exceed Fifty-One Thousand Seven Hundred Seventy-Three Dollars and Seventeen Cents ($51,773.17), under the terms and conditions of the Agreement.
NOW, THEREFORE, the Parties hereby agree as follows:
1. MODIFICATION TO AGREEMENT
1.1 SCOPE OF WORK
City hereby engages Consultant, and Consultant accepts such engagement, to perform the services set forth in the Scope of Services described in Exhibit "A", attached hereto and made part of this Agreement. The Scope of Services may be mutually amended from time to time by both Parties in writing.
1.2 COMPENSATION.
The compensation authorized under Amendment No. 1 to Contract No. 2026-28- AC shall not exceed Eleven Thousand Eight Hundred Ninety-Nine Dollars and Thirty-Nine Cents ($11,899.39). With the approval of this Amendment, the total compensation under the Agreement, as amended, shall not exceed Fifty-One Thousand Seven Hundred Seventy-Three Dollars and Seventeen Cents ($51,773.17). City shall pay Consultant for professional services performed and reimbursable costs incurred in accordance with the Agreement and this Amendment. No additional compensation shall be paid unless approved in advance by the City.
36 Amendment No. I
to Contract No. 2026-28-AC
1.2.1 No payment made hereunder by City to Consultant, other than the final payment, shall be construed as an acceptance by City of any work or materials, nor as evidence of satisfactory performance by the Consultant of its obligations under this Agreement.
1.2.2 The Consultant shall submit to the City a bill of services within 15 calendar days after the end of each month. The City shall pay the Consultant within forty-five (45) days of receipt of this invoice.
1.3 TERM OF AGREEMENT. This Agreement will remain in effect through December 31, 2027, unless otherwise expressly extended and agreed to by both Parties in writing, or terminated by either Party as provided herein.
EFFECT OF AMENDMENT. Except as expressly amended herein, all other terms and conditions of the Agreement and its Amendments, Attachments and Exhibits attached hereto, shall remain in full force. City reserves the right to augment or reduce the scope of work as the City deems necessary.
[Remainder of page left blank intentionally.]
37 Amendment No. l
to Contract No. 2026-28-AC
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:
BY:
Joshua Barron, Mayor
Dated:
ATTEST:
By:
Yodit Glaze, City Clerk
(SEAL)
APPROVED AS TO FORM:
BY: DRAFI (E)
Rail F. Salinas, City Attorney
HDR ENGmEERING, INC.:
By:
Thomas Kim, Senior Vice President
Dated:
38 Attachment B
Agenda Bill 7/28/26
May 22, 2026
Mr. Kenneth Tang, PE
Senior Civil Engineer
City of South Gate, Department of Public Works
8650 California Avenue
South Gate, CA 90280
RE: Amendment #1 to City of South Gate Active Transportation Program (ATP) Cycle 8 Grant Application Support
Dear Mr. Tang:
HDR Engineering, Inc. (HDR) is currently supporting the City of South Gate (City or South Gate) Department of Public Works to prepare the following two grant applications for the Active Transportation Program (ATP) Cycle 8 funding opportunity:
Southern Avenue Multimodal Bridge Project
Atlantic Ave Corridor Connectivity Project
Scope of Work
The original amount for this cost proposal is $39,873.78. To continue supporting preparation of the two grant applications, the City has requested an increase in level of effort, resulting in contract Amendment #1.
Under this amendment, HDR will provide the City with the following additional services:
* For the Southern Avenue Multimodal Bridge Project ATP grant application, HDR will:
o Review the City's cost estimates, define the value of the ATP-eligible items and present the costs in the ATP-specific template format
o Review the concept layout and identify the right-of-way encroachments to be reported in the application
o Revise concept roadway layout and profile to generate the application exhibits o Submit project applications in 2027 ATP Application Portal For the Atlantic Ave Corridor Connectivity Project ATP grant application, HDR will:
o Prepare project layout exhibits identifying the proposed improvements that the City requested during the May 7, 2026, project meeting, including crosswalks, RRFB, curb ramps, pedestrian lighting, bicycle racks, and bike lanes
o Prepare concept sketch of a bus station at the Tweedy/Pinehurst intersection o Prepare cost estimates of the proposed improvements above, define the value of the ATP- eligible items and present the costs in the ATP-specific template format o Submit project applications in 2027 ATP Application Portal Budget
Based on the City's feedback, HDR is proposing an amendment to add $11,899.39 to the original contract amount, for a total of $51,773.17. HDR's cost proposal breakdown is listed in the table below. hdrinc.com
350 South Grand Ave, Suite 2900. Los Angeles. CA 90071-3406 T 213.304.2925
39 City of Culver City I
Proposal for Task Order #7: Staff Augmentation for TIRCP Cycle 7 Grant Application II,.'aa'N
j n ia lnfflffRlIff
a
'i' Ijli ill"ffiffim &i @l}' liT'll'-N -M'l+ffia ;lI'- o o Fl 'iM"n11 T: cinical Advisor i erence 'Pao ---' - -136.0-7 ' S38?.89 2 -;l 7F;7.78 Project Manager Tham Nguyen 132.19 S372.95 2 $ 745.89
Task Lead/Grant Writer ' Rachel Fabian 52.89 S149.22 8 $ 1193.74 Grant Writer Elizabeth (Liz) Ha 43.88 S123.80 8 $ 990.38 Engineering Support Tanner Bleyle 50.16 S141.52 48 $ 6,792.75 Planner Steve Gaskill 62.42 S176.10 8 $ 1,408.84
Total 76 S 11,899.39
We appreciate this opportunity to further assist the City of South Gate Department of Public Works on this project. Please direct any questions or concerns related to this proposal to HDR's Project Manager by phone at 213.304.2925 or via email at [email protected].
Sincerely,
HDR Engineering, Inc.
Thomas T. Kim, PE (CA #57374)
Senior Vice President
Tham Nguyen
Project Manager
40 Attachment C
Agenda Bill 7/28/26
Contract No. 2026-28-AC
AGREEMENT FOR PROFESSIONAL SERVICES FOR ACTIVE
TRANSPORTATION PROGRAM CYCLE 8GRANT APPLICATION
SUPPORT SERVICES BETWEEN THE CITY OF SOUTH GATE AND HDR ENGINEERING, mC
This Agreement for Professional Services for Active Transportation Program Cycle 8Grant Application Support Services ("Agreement") is made and entered into on April 21, 2026 by and between the City of South Gate, a municipal corporation ("City"), and HDR Engineering, Inc., a Nebraska corporation ("Consultant"). City and Consultant are sometimes hereinafter individually referred to as a "Party" and collectively as "Parties."
RECIT ALS
WHEREAS, City desires to retain a qualified provider for certain services relating to the preparation of applications for grants from private and governmental entities to fund municipal public works projects and maintenance services, including Active Transportation Program Cycle 8 Grant Application Support.
WHEREAS, Consultant represents and warrants to City that it has the requisite skills, knowledge, qualifications, manpower and expertise to perform properly and timely the Professional Services under this Agreement; and
WHEREAS, based on such representation and warranty, City desires to contract with Consultant to perform the services as described in the Scope of Services attached hereto as Exhibit "A" of this Agreement.
NOW, THEREFOR, the Parties hereby agree as follows:
1. SCOPE OF SERVICES. City hereby engages Consultant, and Consultant accepts such engagement, to perform the services set forth in the Scope of Services as described in Exhibit "A" attached hereto and made part of this Agreement. The Scope of Services may be mutually amended from time to time by both Parties in writing. The City project for which the Scope of Services are being provided ("Project") consists of assisting the City in preparing two grant applications for the Active Transpiration Program ("ATP") Cycle 8 funding opportunity, including (a) preparing two ATP grant applications - one for the Atlantic Avenue Corridor Coru'iectivity Project and the other for the Southern Avenue Park Bridge Project - and supporting the City in packaging the project scope, funding plan, and collateral materials to align with the grant program requirements and merit criteria, and (b) reviewing recently awarded projects to support the development of a competitive application for the City. As used herein, the term "Project Completion" means the earlier to occur of (i) final approval or denial of those ATP grant applications, or (ii) full and complete performance by Consultant of Task 1, Task 2 and Task 3 as described on Exhibit 'A".
2. COMPENSATION FOR SERVICES. The total amount of compensation for this Agreement shall not exceed the sum of Thirty-Nine Thousand Eight Hundred Seventy-Three and Seventy-Eight Cents ($39,873.78) as described in Consultant's Cost Proposal attached hereto 5116863. l-L235.0 (Form Rev. (H/l 7/23)
41 Agreement for Professional Services
HDR Engineering, Inc.
as Exhibit "B." City shall pay Consultant for its professional services rendered and costs incurred pursuant to this Agreement. No additional compensation shall be paid for any other expenses incurred, unless first approved in writing by the City's City Manager or his designee.
2.1 Consultant shall be required to attend meetings at City Hall as necessary in the delivery of the projects. Travel time between Consultant's office and City Hall shall not be billable. Consultant may request an exemption on a case-by-case basis, which shall be subject to City approval.
2.2 Consultant shall be paid in accordance with Consultant's Cost Proposal attached hereto as Exhibit "B." City shall pay Consultant within thirty (30) days of receipt of the invoice.
2.3 No payment made hereunder by City to Consultant, other than the final payment, shall be construed as an acceptance by City of any work or materials, nor as evidence of satisfactory performance by Consultant of its obligations under this Agreement.
3. TERM OF AGREEMENT. This Agreement is effective as of April 7, 2026, and will remain in effect for a period of until Project Completion, unless otherwise expressly extended and agreed to by both Parties in writing, or terminated by either Party as provided herein.
4. CITYAGENT. The City'sCityManager,orhisdesignee,forthepurposesofthisAgreement, is the agent for City. Whenever approval or authorization is required, Consultant understands that the City Manager, or his designee, has the authority to provide that approval or authorization.
5. CONFLICT OF INTEREST. Consultant represents that it presently has no interest and shall not acquire any interest, direct or indirect, in any real property located in the City which may be affected by the services to be performed by Consultant under this Agreement. Consultant further represents that in performance of this Agreement, no person having any such interest shall be employed by it. Within ten (10) days, Consultant agrees that it will immediately notify City of any other conflict of interest that may exist or develop during the term of this Agreement.
5,1 Consultant represents that no City employee or official has a material financial interest in Consultant's business. During the term of this Agreement and/or as a result of being awarded this Agreement, Consultant shall not offer, encourage or accept any financial interest in Consultant's business or in this Agreement by any City employee or official.
6. GENERAI, TERMS AND CONDITIONS.
6.1 Termination for Convenience. City may ternninate this Agreement at any time without cause by giving fifteen (15) days' written notice to Consultant of such termination and specifying the effective date thereof. In that event, all finished or unfinished documents and other materials shall, at the option of City, become its property. If this Agreement is 5116863.1-L235.0 IC) 42
Agreement for Professional Services
HDR Engineering, Inc.
terminated by City as provided herein, Consultant will be paid the total amount of its costs as of the termination date. In no event shall the amount payable upon termination exceed the total maximum compensation provided for in this Agreement.
6.2 Termination for Cause.
6.2.1 City may, by written notice to Consultant, terminate the whole or any part of this Agreement in any of the following circumstances:
a. If Consultant fails to perform the services required by this Agreement within the time specified herein or any authorized extension thereof, or b. If Consultant fails to perform the services called for by this Agreement or so fails to make progress as to endanger performance of this Agreement in accordance with its terms, and in either of these circumstances does not correct such failure withing a period of ten (10) days (or such longer period as City may authorize in writing) after receipt of notice from City specifying such failure.
6.2.2 In the event City terminates this Agreement in whole or in part as provided above in Subsection 6.2.1, City may procure, upon such terms and in such manner as it may deem appropriate, services similar to those terminated.
6.2.3 IfthisAgreementisterminatedasprovidedaboveinSubsection6.2.1,Citymay require Consultant to provide all finished or unfinished documents, data, studies, drawings, maps, photographs, reports, films, charts, sketches, computations, surveys, models, or other similar documentation prepared by Consultant. Use by City of any unfinished documents, data, studies, drawings, maps, photographs, reports, films, charts, sketches, computations, surveys, models, or other similar documentation prepared by Consultant shall be at City's sole risk and without liability to Consultant. Upon such termination, Consultant shall be paid an amount equal to the value of the work performed.
In ascertaining the value of the work performed up to the date of termination, consideration shall be given to both completed work and work in progress, to complete and incomplete drawings, and to other documents whether delivered to City or in possession of Consultant, and to authorized reimbursement expenses.
6.2.4 If, after notice of termination of the Agreement under the provisions of Subsection 6.2.1 above, it is determined, for any reason, that Consultant was not in default, or that the default was excusable, then the rights and obligations of the Parties shall be the same as if the notice of termination had been issued pursuant to Subsection 6.1. above.
5116863.1-L235.0 43
Agreement for Professional Services
HDR Engineering, Inc.
6.3 Non-Assignability. Consultant shall not assign or transfer any interest in this Agreement without the express prior written consent of City.
6.4 Non-Discrimination.
6.4.1 Consultant shall not discriminate against any employee, subcontractor, or applicant for employment because of race, creed, gender, gender identity (including gender expression), color, religion, ancestry, sexual orientation, national origin, disability, age, marital status, family/parental status, or veteran/military status, in the performance of its services and duties pursuant to this Agreement and will comply with all applicable laws, ordinances and codes of the federal, state, and county and the City governments. Consultant will take affirmative action to ensure that subcontractors and applicants are employed, and that employees are treated during employment without regard to their race, color, religion, ancestry, sex, national origin, disability, or age. Consultant will take affirmative action to ensure that all employment practices, including those of any subcontractors retained by Consultant to perform services under this Agreement, are free from such discrimination. Such employment practices include, but are limited to: hiring, upgrading, demotion, transfer, recruitment, recruitment advertising, layoff, termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship.
6.4.2 The provisions of Subsection 6.4.1 above shall be included in all solicitations or advertisements placed by or on behalf of Consultant for personnel to perform any services under this Agreement. City shall have access to documents, data, and records of Consultant and its subcontractors only to the extent necessary for purposes of determining compliance with the equal employment opportunity and non-discrimination provisions of this Section, and all applicable provisions of Executive Order No. 11246 (relating to federal restrictions against discriminatory practices) is available for review and on file with the City Clerk's Office.
6.5 Insurance. Consultant shall submit to City, certificates indicating compliance with the following minimum insurance requirements no less than one (1) day prior to begiru'iing of performance under this Agreement:
6.5.1 Workers Compensation Insurance as required by law. Consultant shall require all subcontractors (if the City approves any subcontractors) similarly to provide such workers' compensation insurance for their respective employees.
6.5.2 Comprehensive general and automobile liability insurance protecting Consultant in amounts not less than $1,000,000 per occurrence/accident for bodily injury and property damage liability.
125]16863.1-L235.0 44
Agreement for Professional Services
HDR Engineering, Inc.
6.5.3 Professionalliabilityinsurancewithalimitofnotlessthan$1,000,000perclaim and $5,000,000 annual aggregate.
6.5.4 Each such policy of liability insurance shall:
a. Be issued by a financially responsible insurance company or companies admitted and authorized to do business in the State of California or which is approved in writing by City.
b. Include an Additional hisured Endorsement (CG 20 10 11 85) naming the City of South Gate and its agents as an additional insured with respect to the City's and its officers and employees' interests under this Agreement.
This is to be complied with by presenting an appropriate insurance policy.
The limits of insurance provided to the additional insured shall be the limits set forth in this Agreement.
c. State that the insurance provided to the additional insureds is primary and non-contibutory to any other insurance (including without limitation primary, umbrella, excess, self-insurance or any other basis) available to the additional insureds.
d. Contain a clause substantially in the following words: "It is hereby understood and agreed that this policy shall not be canceled except upon thirty (30) days prior written notice to City of such cancellation or material change."
e. CovertheoperationsofConsultantpursuanttothetermsofthisAgreement.
6.6 Indemnification. Consultant agrees to indemnify, defend and hold harmless City and/or any other City agency, including other employees, officers and representatives, for/from any and all claims or actions of any kind asserted against City and/or any other City agency to the extent arising out of Consultant's (including Consultant's employees, representatives, products and subcontractors) negligent performance under this Agreement, and excepting claims or actions to the extent they may arise out of negligence of City and/or any other City agency, or any third parties not acting on behalf of, at the direction of, or under the control of Consultant.
6.7 Compliance with Applicable Law. Consultant and City shall comply with all applicable laws, ordinances, and codes of the Federal, State, County and City governments, without regard to conflict of law principles.
6.8 Independent Contractor. This Agreement is by and between City and Consultant and is not intended, nor shall it be construed, to create the relationship of agency, servant, employee, partnership, joint venture, or association, as between City and Consultant. 51i6863.1-L235.0 45
Agreement for Professional Services
HDR Engineering, Inc.
6.8.1 Consultant shall be an independent contractor and shall have no power to incur any debt or obligation for or on behalf of City. Neither City nor any of its officers or employees shall have any control over the conduct of Consultant, or any of Consultant's employees, except as herein set forth, and Consultant expressly warrants not to, at any time or in any manner, represent that it, or any of its agents, servants or employees are in any manner employees of City, it being distinctly understood that Consultant is and shall at all times remain to City a wholly independent contractor and Consultant's obligations to City are solely such as are prescribed by this Agreement.
6.8.2 Indemnification of CalPERS Determination - In the event that Consultant or any employee, agent, or subcontractor of Consultant providing services under this Agreement claims or is determined by a court of competent jurisdiction or CalPERS to be eligible for enrollment in CalPERS as an employee of City, Consultant shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for CalPERS benefits on behalf of Consultant or its employees, agents, or subcontractors, as well as, for the payment of any penalties and interest on such contributions which would otherwise be the responsibility of City.
6.8.3 Business License Required. According to Title 2.08.40 of the South Gate Municipal Code, a business license will be required prior to doing business within the City, even if the business is located outside of the City. Verification of a valid South Gate business license will be required prior to start of work and any fees associated with the acquisition or maintenance of such business license shall be the sole responsibility of Consultant.
6.9 Consultant's Personnel.
6.9.1 All services required under the Agreement will be performed by Consultant, and all personnel shall possess the qualifications, permits and licenses required by State and local law to perform such services, including, without limitation, a City of South Gate business license as required by the South Gate Municipal Code.
6.9.2 Consultant shall be solely responsible for the satisfactory work performance of all personnel engaged in performing services required by this Agreement, and will provide all services with the care and skill ordinarily used by members of Consultant's profession practicing under the same or similar circumstances at the same time and in the same locality.
6.9.3 Consultant shall be responsible for payment of all employees' and subcontractors' wages and benefits and shall comply with all requirements 5116863.1-L235.0 ri 46
Agreement for Professional Services
HDR Engineering, Inc.
pertaining to employer's liability, workers' compensation, unemployment insurance and Social Security.
6.9.4 Consultant shall indemnify and hold harmless City and all other related entities, officers, employees and representatives from any liability, damages, claims, costs, and expenses of any nature arising from alleged violations of Consultant employment practices.
6.10 Copyright. No reports, maps or other documents produced in whole or in part under this Agreement shall be the subject of an application for copyright by or on behalf of Consultant.
6.11 Legal Construction.
6.11.1 This Agreement is made and entered into in the State of California and shall in all respects be interpreted, enforced, and governed under the laws of the State of California without regard to conflict of law principles.
6.11.2 This Agreement shall be construed without regard to the identity of the persons who drafted its various provisions. Each and every provision of this Agreement shall be construed as though each of the parties participated equally in the drafting of same, and any rule of construction that a document is to be construed against the drafting party shall not be applicable to this Agreement.
6.11.3. The article and section, captions and headings herein have been inserted for convenience only and shall not be considered or referred to in resolving questions of interpretation or construction.
6.11.4. Whenever in this Agreement the context may so require, the masculine gender shall be deemed to refer to and include the feminine and neuter, and the singular shall refer to and include the plural.
6.11.5. All of the recitals set forth in this Agreement, and all of the exhibits attached to this Agreement, are by this reference incorporated in and made a part of this Agreement as though fully set forth herein.
6.12 Counterparts. This Agreement may be executed in counterparts and, as so executed, shall constitute an agreement which shall be binding upon all Parties hereto.
6.13 Final Payment Acceptance Constitutes Release. The acceptance by Consultant of the final payment made under this Agreement shall operate as and be a release of City from all claims and liabilities for compensation to Consultant for anything done, furnished, or relating to Consultant's work or services. Acceptance of payment shall be any negotiation of City's check or the failure to make a written extra compensation claim 5]16863.1-L235.0 47
Agreement for Professional Services
HDR Engineering, Inc.
within ten (10) calendar days of the receipt of that check. However, approval or payment by City shall not constihite, nor be deemed, a release of the responsibility and liability of Consultant, its employees, sub-consultants and agents for the accuracy and competency of the information provided and/or work performed; nor shall such approval or payment be deemed to be an assumption of such responsibility or liability by City for any negligent defect or error in the work prepared by Consultant, its employees, sub-consultants and agents.
6.14 Corrections. In addition to the above indemnification obligations, Consultant shall correct, at its expense, all negligent errors in the work which may be disclosed during City's review of Consultant's report or plans. Should Consultant fail to make such correction in a reasonably, timely manner, such correction shall be made by City, and the reasonable cost thereof shall be charged to Consultant.
6.15 Files. All files of Consultant comprising the deliverables to City shall be and remain the property of City. Consultant's distinct or pre-existing intellechial property is expressly excluded from this provision. Consultant will control the physical location of such files during the term of this Agreement and shall be entitled to retain copies of such files upon termination of this Agreement.
6.16 Waiver; Remedies Cumulative. Failure by a Party to insist upon the performance of any of the provisions of this Agreement by the other party, irrespective of the length of time for which such failure continues, shall not constitute a waiver of such Party's right to demand compliance by such other Party in the fuhire. No waiver by a Party of a default or breach of the other party shall be effective or binding upon such a Party unless made in writing by such Party, and no such waiver shall be implied from any omissions by a Party to take any action with respect to such default or breach. No express written waiver of a specified default or breach shall affect any other default or breach, or cover any other period of time, other than any default or breach and/or period of time specified. All of the remedies permitted or available to a Party under this Agreement, or at law or in equity, shall be cumulative and alternative, and invocation of any such right or remedy shall not constitute a waiver or election of remedies with respect to any other permitted or available right of remedy.
6.17 Mitigation of Damages and Waiver of Consequential Damages. In all such sihiations arising out of this Agreement, the Parties shall attempt to avoid and minimize the damages resulting from the conduct of the other Party. Neither Party to this Agreement shall be liable to the other Party for any special, incidental, indirect, or consequential damages (including but not limited to loss of profits or revenue; loss of use or opportunity; loss of good will; cost of substitute facilities, goods, or services; and/or cost of capital) arising out of, resulting from, or in any way related to the services or this Agreement from any cause(s), including but not limited to any such damages caused by negligence, errors or omissions, strict liability, or breach of contract. 5116863.1-L235.0 48
Agreement for Professional Services
HDR Engineering, Inc.
6.18 Severabffity. If any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions will nevertheless continue in full force without being impaired or invalidated in any way.
6.19 Attorneys' Fees. The Parties hereto acknowledge and agree that each will bear his or its own costs, expenses and attorneys' fees arising out of and/or connected with the negotiation, drafting and execution of the Agreement, and all matters arising out of or connected therewith except that, in the event any action is brought by any Party hereto to enforce this Agreement, the prevailing Party in such action shall be entitled to reasonable attorneys' fees and costs in addition to all other relief to which that Party or those Parties may be entitled.
6.20 Entire Agreement and Amendments. This Agreement constitutes the whole agreement between City and Consultant, and neither party has made any representations to the other except as expressly contained herein. Neither party, in executing or performing this Agreement, is relying upon any statement or information not contained in this Agreement, Any amendments, changes or modifications to this Agreement must be made in writing and appropriately executed by both City and Consultant.
6.21 Notices. Any notice required to be given hereunder shall be deemed to have been given by email transmission with confirmation of delivery and depositing said notice in the United States mail, postage prepaid, and addressed as follows:
TO CITY:
City of South Gate
Assistant City Manager/Director of Public Works
8650 California Ave.
South Gate, CA 90280
Email: [email protected]
TEL: (323) 563-9567
TO CONSULTANT:
HDR Engineering, Inc.
Thomas Kim, PE
Senior Vice President
350 S. Grand Avenue, Suite 2900
Los Angeles, CA 90071
Phone: (714) 504-8860
Email: Tom.kim(,hdrinc.com
WITH COURTESY COPY TO:
City of South Gate
Yodit Glaze, City Clerk
8650 California Avenue
South Gate, CA 90280
Email: yglaze(24sogate.org
TEL: (323)563-9510
1'7
5116863.1-L235.0 49
Agreement for Professional Services
HDR Engineering, Inc.
6.22 Warranty of Authorized Signatories. Each of the signatories hereto warrants and represents that he or she is competent and authorized to enter into this Agreement on behalf of the Party for whom he or she purports to sign.
6.23 Consultation with Attorney. Consultant warrants and represents that it has consulted with an attorney or knowingly and voluntarily decided to forgo such a consultation.
6.24Interpretation Against Drafting Party. City and Consultant agree that they have cooperated in the review and drafting of this agreement. Accordingly, in the event of any ambiguity, neither Party may claim that the interpretation of this Agreement shall be construed against either Party solely because that Party drafted all or a portion of this Agreement, or the clause at issue.
7. CALIFORNIA LEVINE ACT DISCLOSURE STATEMENT. In accordance with California SB1439 extended requirements under Governrnent Code Section 84308, also known as the "Levine Act," a disclosure must be filed of political contributions totaling more than two hundred fifty dollars ($250) within the previous twelve (12) months, and for three (3) months following the date a final decision is made to award an agreement. Therefore, the City requires that Consultant fill out the California Levine Act Disclosure Statement form available on the City website and submit it to the City Clerk's Office prior to the approval of this Agreement.
8. EFFECTIVE DATE. The effective date of this Agreement is April 7, 2026 and will remain in effect through and until Project Completion, unless otherwise terminated in accordance with the terms of this Agreement.
[Remainder of page left blank intentionally.]
5116863.1 -L235.0 50
Agreement for Professional Services
HDR Engineering, Inc.
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:
By: ""'9cl)%ttsr-(';ci(,.
Rob Houston, City Manager
Dated:
05/07/2026
ATTEST:
By: '
Yodit Glaze, City Clerk
(SEAL)
APPROVED AS TO FORM:
sy, Q 2
Raul F. Salinas, City Attorney
HDR ENGINEERING, INC.
By:
Thomas Kim, Senior Vice President
Dated: 4/23/2026
5116863.1-L235.0 51
Exhibit "A"
Agreement for Professional Services
HDR Engineering, Inc.
Scope of Work
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Agreement for Professional Services
HDR Engineering, Inc.
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I SHEET 1 0F 1 56
Offn;e of the
Soutl'i G=ite City Clpn-
Item No. 5
)(Jl 2 3 7n2r-
FILED Ciffl of South Gate
') o-'lO CITY COUNCIL
AGENDA BI[LL
For the Regular Meeting of: July 28, 2026
Originating Department: Community Development
nepartmemDirector: 04"""a(" Cttyuanager: 'A't{1"'C6'(>' Gabriel Perez for Rob Houstorx
SUBJECT: AMENDMENT N0. 4 TO CONTRACTN0. 2022-85-AC WITH BDO USA, LLP@,
TO CONTINUE PROV IUIING GENERAL ACCOUNTING SERVICES AND FINANCIAL
ASSISTANCE TO THE CITY OF SOUTH GATE HOUSING AUTHORITY PURPOSE: To amend Contract No. 2022-85-AC with BDO USA LLP., ("BDO") to continue providing general accounting and financial assistance services for an additional one yeari RECOMMENDED ACTIONS: The City Council will consider:
a, Approving Amendment No. 4 to Conttact No. 2022-85-AC with BDO, to continue providing as-needed accouriting and finaricial services to the City of South Gate Housing Authority (SGHA) retroactive to July 1, 2026, thtough June 30, 2027, in an aggregate amount not to exceed $125,000; and
b. Authorizing the Mayor to execute An'iendment No. 4 in a form acceptable to the City Attorney,
FISCAL IMPACT: The cost of the proposed AmendmentNo. 4 is included in the Fiscal Year 2026/27 Municipal Budget and will be funded with the following fund:
* Housing Authority (Section 8 Admin) - Fund 241 $ 25,000 ANALYSIS: BDO provides a variety of accounting and financial services to the City of South Gate through theHousirig Authority. These services include professional guidance in areas where the City may not have specialized expertise to comply with accounting and financial housing issues. Listed below are some of the services BDO has provided the SGHA this past Fiscal Year:
@ Analyze, prepare, and submit the monthly Voucher Management System (VMS) submissionto the Department of :E-Iousing and Urban Development (HUD) Per HUD requirements we are allowed.
* Analyze and prepare monthly statements of revenue, expenses, and net position, * Preparemonthlybankreconciliationandreconcilebaancstatementbalancetothegeneral ledger; Prepare journal vouchers (JVs) to reconcile. 1 57
* Prepare monthly calculation and JV posting of earned administrative fees and Housing Assistance Payment (HAP) revenues.
* Analyze and prepare the monthly board report for the Board of Commissioners. * Analyze and prepare calculations for the HAP program reserve balance. * Analyze and update the monthly port-in register and prepare JV. * Analyze and prepare JV to record monthly fraud recovery revenue. @ Prepare year-end unaudited and audited Financial Data Schedule (FDS) and submit it to Real Estate Assessment Center (REAC).
* Review HUD correspondence and reconcile HUD fiinding.
The proposed amendment would allow BDO to continue providing general accounting services, financial expertise, and assistance to the SGHA.
BACKGROUND: On September 27, 2022, the City Manager approved Contract No. 2022-85- AC with Consultant ("Agreement") for General Accounting Services and Financial Assistance in an amount not to exceed Twenty-Five Thousand Dollars ($25,000). Pursuant to HUD requirements, the City may enter into an agreement for up to 5 years. This amendment will be year four of the five eligible years.
On August 16, 2023, City and Consultant executed Amendment No. 1 to extend General Accounting and Financial Assistance services.
On October 1, 2024, City and Consultant executed Amendment No. 2 to extend General Accounting and Financial Assistance services.
On August 26, 2025, City and Consultant executed Amendment No. 3 to extend General Accounting and Financial Assistance services.
The City and Consultant desire to execute Amendment No. 4 to extend services identified in the Scope of Work, attached hereto as Exhibit "A" and made a part of this Amendment, for an additional year in an amount not to exceed Twenty-Five Thousand Dollars ($25,000), under the terms and conditions of the Agreement, bringing the aggregate total of the Agreement, as amended by Amendments Nos. 1, 2, 3 and 4 to One Hundred Twenty-Five Thousand Dollars ($125,000).
ATT ACHMENTS: A. Proposed Amendment No. 4 (including Scope of Work - Exhibit "A") B. Amendment No. 3 to Contract No. 2022-85-AC
C. Amendment No. 2 to Contract No. 2022-85-AC
D. Amendment No. 1 to Contract No. 2022-85-AC
E. Contract No. 2022-85-AC
2 58
Attachment A
Agenda Bill 7/28/26
Amendment No. 4
Contract No. 2022-85-AC
AMENDMENT NO. 4 TO CONTRACT N0. 2022-85-AC FOR
PROFESSIONAJ, SERVICES FOR GENERAL ACCOUNTING SERVICES
AND FINANCIAL ASSISTANCE BETWEEN THE CITY OF SOUTH
GATE AND BDO USA, LLP
This Amendment No. 4 to Contract No. 2022-85-AC for Professional Services for General Accounting Services and Financial Assistance ("Amendment No. 1") is made and entered into on July 1, 2026, retroactively, by and between the City of South Gate, a municipal corporation ("City"), and BDO USA, ("Consultant"). City and Consultant are sometimes hereina:[ter individually referred to as a "Party" and collectively as "Parties."
RECITALS
WHEREAS, on September 27, 2022, the City Manager approved Contract No. 2022-85- AC with Consultant ("Agreement") for General Accounting Services and Financial Assistance in an amount not to exceed Twenty-Five Thousand Dollars ($25,000).
WHEREAS, on August 16, 2023, City and Consultant executed Amendment No. l to extend General Accounting and Financial Assistance services; WHEREAS, on September 26, 2024, City and Consultant executed Amendment No. 2 to extend General Accounting and Financial Assistance services; and WHEREAS, on August 27, 2025, City and Consultant executed Amendment No. 3 to extend General Accounting and Financial Assistance services; and WHEREAS, City and Consultant desire to execute Amendment No. 4 to extend services identified in the Scope of Work, attached hereto as Exhibit "A" and made a part of this Amendment, for an additional year in an amount not to exceed Twenty-Five thousand dollars ($25,000), under the terms and conditions of the Agreement, bringing the aggregate total of the Agreement, Amendment No. 1, Amendment No.2, Amendment No. 3 and Amendment No. 4 to One Hundred Twenty Five Thousand Dollars ($125,000).
NOW, THEREFOR, the Parties hereby agree as follows:
1. MODIFICATION TO AGREEMENT
1.1 TERM OF AGREEMENT. The term of the Agreement, including Amendment No. 1, Amendment No 2 and Amendment No 3 is extended for one (l) year beginning July 1, 2026, through June 30, 2027, unless otherwise expressly extended and agreed to by both Parties in writing, or terminated by either Party as provided herein.
1.2 COMPENSATION. The amount of compensation paid by City to Consultant for the additional scope of work identified in Exhibit "A" shall not exceed Twenty-Five Thousand Dollars ($25,000).
59 Amendment No. 4
Contract No. 2022-85-AC
2. EFFECTIVE DATE. The effective date of this Amendment No.4 is retroactive to July 1, 2026, and will remain in effect for one (1) year through and including June 30, 2027, unless otherwise terminated in accordance with the terms of the Agreement.
3. 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 and in full force and effect. All recitals to this Amendment No. 4 are incorporated into the Agreement as modified by this Amendment No. 4 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. 4 to be executed and attested by their respective officers thereunto duly authorized.
CITY OF SOUTH GATE:
By:
Rob Houston, City Manager
Dated:
ATTEST:
BY:
Yodit Glaze, City Clerk
(SEAL)
APPROVED AS TO FORM:
BY:
Raul H!!!'C:!'! Eo
BDO USA,:
By:
Brian Alten, CPA Partner
Dated:
60 IBDQ
Tel: 215-564-1900
Fax: 215-564-3940
www.bdo.com
1801 Market Street, Suite 1200
Philadelphia, PA 19103
June 29, 2026
City of South Gate
Attn: Carol Averell, Housing Manager
8650 California Avenue
South Gate, CA 90280
Re: Agreement for Professional Services
Dear Ms. Averell,
Thank you for selecting BDO USA. We appreciate the opportunity to provide exceptional professional services to City of South Gate ("Client" or "YQ!!"). Your services will be provided by BDO USA (collectively "BDO" or "we"). This agreement is effective on July 1, 2026, and will be good through June 30, 2027.
Scope of Services
As ageed, BDO will provide services (the "Services") that include the following services, financial expertise, and assistance.
* Analyze, prepare, and submit the monthly Voucher Management System (VMS) submission to HUD
* Analyze and prepare monthly statements of revenue, expenses, and net position Prepare monthly bank reconciliation and reconcile bank statement balance to the general ledger; Prepare Journal Vouchers (JVs) to reconcile Prepare monthly calculation and JV posting of earned administrative fees and HAP revenues
* Analyze and prepare the monthly board report for the Board of Commissioners Analyze and prepare calculations for the HAP program reserve balance Analyze and update the monthly port-in register and prepare JV Analyze and prepare JV to record monthly fraud recovery revenue * Prepare year-end unaudited and audited Financial Data Schedule (FDS) and submit to REAC Any other general accounting technical assistance requested by Client and agreed to by BDO
Any Service not specifically described herein is outside the scope of this agreement.
Fee Arrangement
BDO's fee for Services will be the firm's hourly rates, as noted below, plus costs for out-of-pocket expenditures. The total annual fees shall not exceed S25,000; and client will only be billed for work effort required.
BDO USA refers tO BDO USA, p.c., a Virginia professional corporation, also doing business in certain jursdictions with an altemative identifying abbreviation, such as Corp. or p.s.c.
BDO 1154, p.c. is the 11.5. member of BDO Intemational Limited, a UK company limited by guarantee, and forms part of the intemational BDO network of independent member fimis.
BDO is the brand name for the BDO network and for each of the BDO Member Fimis. 5 61
IBDQ
Hourly Rates
The hourly rates for the employees of BDO who will be providing the Services are as follows:
Staff
Partner
Director
Manager
Senior
Accountant
Hourly Rate
S260
S200-5235
5150-5195
!>130-5145
S125
The following terms and conditions shall apply to the Services provided by BDO under this agreement:
1. General. Unless the parties specifically state in writing that they intend to modify a term of this agreement, the terms of this agreement shall prevail.
2. Russia Sanctions. By executing this Agreement, Client represents that it is not owned or controlled, directly or indirectly, by one or more Russian citizen(s), Russian national(s), persons physically Located in Russia or entity(s) organized under the Laws of Russia. Client agrees that if at any time while BDO is providing services to Client the foregoing representation is no longer true, Client will immediately notify BDO.
3. Termination. Each party shall have the right to terminate this agreement at any time by giving written notice to the other party not less than 30 business days before the proposed effective date of termination. BDO may terminate this agreement and outstanding Services immediately if BDO reasonably determines that it must do so to comply with applicable professional standards, applicable laws or regulations (e.g., a conflict of interest arises). Those provisions in this agreement that, by their very nature, are intended to survive termination shall survive after the termination of this agreement, incLuding, but not Limited to, the parties' obligations related to any of the following provisions: indemnification, Limitations on liability, conFidentiaLity, dispute resolution, payment and reimbursement obligations, Limitations on use or reliance, and non- solicitation.
If this agreement is terminated Client agrees to compensate BDO for the Services performed and expenses incurred through the effective date of termination. To the extent Client terminates this agreement, any licensing arrangements under which Client receives from BDO a license to use, or obtain access to, External Computing Options (as defined below), Client agrees that it will be responsible for all fees and expenses associated with such licenses for External Computing Options through and incLuding the date that is thirty days after date the Client provides such termination notice to BDO.
4. Indemnificat'ion and Limitation of Liability. As the Services are intended for Client and not third parties, Client agrees to release, indemnify and hold harmless BDO and its partners, principals, employees, affiliates, contractors and agents (collectively "") from and against all claims, liabilities, damages or expenses (including attorneys' fees) of any kind relating to the Services or this agreement, whether arising in contract, statute, tort (including without limitation, negligence) or otherwise (collectively, the "Claims") that are brought by a third party.
Client further agrees to release, indemnify and hold harmless BDO Group from all Claims relating 2 62
IBDQ
to the Services or this Agreement attributable to any misrepresentations made by Client. Except to the extent finally determined to have resulted from BDO Group's fraud or intentional misconduct, BDO Group's aggregate liability to Client for all direct or third-party Claims shall not exceed the amount of fees paid by Client to BDO under this agreement. In no event shall BDO (,roup be Liable for consequential, special, indirect, incidental, punitive, or exemplary Losses or damages, loss of profits or Losses resulting from Loss of data, business or goodwill reLating to this agreement, regardless of whether BDO has been advised of the possibility or such damages. Client shall bring any Claims related to the Services or otherwise related to this agreement no later than one year after (i) the completion of the Services set forth herein or (ii) if this agreement was terminated prior to completion of the Services, the date this agreement was terminated. In no event shall the preceding sentence extend any otherwise legally applicable period of limitations on such Claims.
5. Third-Parties and Use. All Services and deliverables hereunder shall be solely for Client's use and benefit pursuant to our client relationship. This engagement does not create privity between BDO and any person or party other than Client and is not intended for the express or implied benefit of any third party. No third party is entitled to rely, in any manner or for any purpose, on the Services or deLiverables of BDO hereunder.
6. BDO Responsibiltties. BDO's Services will not constitute an audit, review, compilation, examination or other form of attest engagement. BDO shall have no responsibility to address any legal matters or questions of Law. After completion of the Services, BDO will have no responsibility to update its advice, recommendations or work product for changes or modifications to the Law and regulations or for subsequent events or transactions, unless Client separately engages BDO in writing to do so.
7. Client Responsibilities. For BDO to remain independent, professional standards require BDO to maintain certain respective roles and relationships with Client regarding the Services.
Client understands and agrees that BDO will not perform management functions or make management decisions on behalf of Client. However, BDO will provide advice and recommendations to assist management of Client in performing its functions and fulfilling its responsibilities. In connection with BDO's provision of Services, Client agrees that Client shall perform the following functions: (a) make all management decisions and perform all management functions with respect to the Services performed by BDO; (b) assign an individual who possesses suitable skill, knowledge and experience to oversee such Services and to evaluate the adequacy and results of such Services; and (c) accept responsibility for the results of such Services.
Because professional and certain reguLatory standards require us to be independent, in both fact and appearance, with respect to the Client in the performance of our Services, any discussions that you have with personnel of BDO regarding employment could pose a threat to our independence.
Therefore, BDO requests that you inform us prior to any such discussions so that we can implement appropriate safeguards to maintain our independence.
The Client shall not employ or divert any employee or independent contractor of BDO. The obligations imposed by this paragraph shall survive the termination of this Agreement and continue for a period of one year following such termination. As liquidated damages for any breach of the obligations imposed by this paragraph, the Client shall pay to BDO an amount equal to 100% of the annual salary of any employee or 100% of the payments to any independent subcontractor over the most recent 12-month period, payable by BDO to the relevant employee or independent subcontractor at the time of such breach.
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IBDQ
8. Client Materials. BDO shall be entitled to rely on and assume, without independent verification, that all representations, assumptions, information and data supplied by or on behalf of Client, its personnel, representatives, and agents (the "Client Materials") are complete and accurate. Client is responsible for ensuring that all Client Materials provided to BDO may be transferred to BDO and processed in accordance with the terms of this agreement and applicable Laws, and that to the extent required thereunder Client has obtained all consents required for BDO's receipt and use of the Client Materials. Client agrees that it will not transmit or make accessible to BDO in any manner personally identifiabLe information unless reasonably required for BDO's performance of the Services. BDO will not audit or otherwise verify the accuracy or completeness of the data you submit, although we may need to ask you for clarification of some of the information. Client shall be responsible for maintenance and retention of its records. Unless otherwise agreed to by the parties, BDO shall not assume any responsibility for any financial reporting with respect to the Services.
9. Ownership of Working Papers. In connection with the performance of the Services, we will prepare records and deliverables as set forth above. We also will prepare documents that support our work and include items such as work programs and analyses that do not constitute part of Client's records ("Working, Papers"). The Working Papers prepared pursuant to this agreement are the property of BDO. The Working Papers constitute confidential, proprietary, and trade secret information, and will be retained by BDO in accordance with our policies and procedures and all applicable Laws.
10. Additional Fees and Expenses. The amount of our fees is based upon the expectation that certain information and assistance will be received by BDO in a timely manner from Client as set forth in this agreement. If BDO believes an additional fee is required as the result of the failure o( Client to meet any of these requests for information or for any other reason, BDO will inform you in a timely manner.
Our standard practice is to render our invoices on a monthly basis. Payment of our invoices is due 45 days after receipt. Invoices that are unpaid 45 days past the invoice date are deemed delinquent and we reserve the right to charge interest on the past due amount at the lesser of 1.O% per month or the maximum amount permitted by law. If an account has fees that are not paid in a timely manner, we then reserve the right to suspend our Services, terminate the licensing arrangements under which you receive a license to use, or suspend your access to, External Computing Options provided through BDO, withhold delivery of any deliverables, or withdraw from this engagement enttrely. If any collection action is required, you agree to reimburse us for all our costs of collection, including without limitation, attorneys' fees.
11. Assignment and Sole Recourse. In performing the Services hereunder, BDO may assign its rights to perform a portion of the Services to, and may engage, the service of entities owned in whole or in part by BDO ("Affiliates"), members of the BDO Alliance USA (a nationwide association of independentLy-owned local and regional accounting, consulting and service firms, ("Alliance 3"), independent member firms of the international BDO network ("Member Firms"), and independent contractors, including but not limited to parties who render auxiliary services ("Contractors" and, together with Affiliates, Alliance Firms and Member Firms, collectively, "Third- Party Service Providers." If a Third-Party Service Provider is utilized or assignment is made, Client agrees that, unless Client contracts directly with the Third-Party Service Provider, substantially all of the applicable terms and conditions set forth in the agreement, shall apply to the Third-Party 4 64
IBDQ
Service Provider. BDO agrees that it shall not permit the Third-Party Service Provider to perform any work relating to the Services until the Third-Party Service Provider agrees to be bound by the applicable terms and conditions of this agreement. BDO further agrees that it will remain primarily responsible for the Services, unless Client and BDO agree otherwise, and BDO will ensure that the work of the Third-Party Service Provider is performed in accordance with this agreement. Although applicable privacy laws may vary depending on the jurisdiction and may provide less or different protection than those of Client's home country, BDO requires Third-Party Service Providers to agree to maintain the confidentiaLity of Client's information and observe BDO's policies concerning any confidential client information that BDO provides to Third-Party Service Providers. To the extent you have any Claims against a Member Firm that is a Third Party Service Provider in any way arising from, in respect of or in connection with the Services or this agreement, you agree that you shall bring such Claim(s) against BDO instead of such Member Firm, except to the extent finally judicially determined to have resulted from the fraud or intentional misconduct of such Member Firm. A Member Firm may enforce any Limitations or exclusions of liability available to BDO under this agreement.
Without our prior written consent, Client may not assign this agreement except to a party that acquires substantially all of your assets and operations.
12. DisputeResolution.AnydisputeorclaimbetweenyouandBDOarisfngoutoforrelating to this agreement or a breach of this agreement, including, without limttation, claims for breach of contract, professional negligence, breach of fiduciary duty, misrepresentation, fraud or claims based in whole or in part on any other common-law, statutory, regulatory, legal or equitable theory, and disputes regarding all fees, including attorneys' fees of any type, and/or costs charged under this agreement ("Arbitration Claims") (except to the extent provided below) shall be submitted to binding arbitration administered by the American Arbitration Association (""), in accordance with its Commercial Arbitration Rules. Arbitration Claims shall be brought in a party's individual capacity, and not as a plaintiff or class member in any purported class or representative proceeding. Arbitration Claims shall be heard by a panel of three (3) arbitrators, to be chosen as follows: within fifteen (15) days after the commencement of arbitration, each party shall select one person to act as arbitrator; thereafter, the two individually selected arbitrators shall select a third arbitrator within ten (10) days of their appointment. If the arbitrators selected by the parties are unable or fail to agree upon the third arbitrator, the third arbitrator shall be selected by the AAA. The arbttration panel shall have the power to rule upon its own jurisdiction and authority, including any objection to the initial or contfnuing existence, validity, effectiveness or scope of this arbitratton agreement.
The arbitration panel may not consolidate more than one person's claims and may not otherwise preside over any form of a representative or class proceeding. The arbitration panel shall have no authority to award non-monetary or equitable relief, but nothing herein shall be construed as a prohibition against a party from pursuing non-monetary or equitable relief in a federal or state court. The place of arbitration shall be the city in which the BDO office providing the majority of the Services involved is located, unless the parties agree in writing to a different location. Regardless of where the arbitration proceeding actually takes place, all aspects of the arbitration and this agreement shall be governed by the provisions of the laws of the State of New York (except tf there is no applicable state law providing for such arbitration, then the Federal Arbitration Act shall apply) and the procedural and substantive law of such state shall be applied without reference to conflict of law rules. The parties shall bear their own legal fees and costs for all Arbitration Claims. The award of the arbitrators shall be accompanied by a reasoned opinion, and judgment on the award rendered by the arbitration panel may be entered tn any court having jurisdiction thereof. Except as may be required by 5 65
IBDO
law or to enforce an award, neither a party nor an arbitrator may disclose the existence, content, or results of any arbitration hereunder without the prior written consent of the parties to this agreement.
The parties to this agreement acknowledge that by agreeing to this arbitration provision, they are gfving up the right to litigate claims against each other, and important rights that would be available in litigation, including the right to trtal by judge or jury, to extensive discovery and to appeal an adverse decision. The parties acknowledge that they have read and understand this arbitration provision, and that they voluntarily agree to binding arbitration
13. Conflicts of Interest. BDO is not aware of any conflicts of interest with respect to any of the names Client has provided. BDO is not responsible for continuously monitoring other potential conflicts that could arise during the course of the engagement, although we will inform Client promptly should any come to our attention. We reserve the right to resign from this engagement at any time if conflicts of interest arise or become known to us. Additionally, our engagement by Client will in no way preclude us from being engaged by any other party in the future.
Notwithstanding anything contained in confidentiality provisions set forth herein, BDO shall be permitted to disclose that it is engaged to provide the Services to Client under this agreement if BDO in its reasonable professional judgment determines that such disclosure is required in connection with BDO's provision of services on behalf of other clients of BDO, including, without limitation, professional services engagements under which BDO personnel act as professionals in legal proceedings that require disclosures, arbitrators in post-acquisition disputes or act as expert witnesses.
14. Power and Authority. Each of the parties hereto has all requisite power and authority to execute and deliver this agreement and to carry out and perform its respective obligations hereunder. This agreement constitutes the Legal, valid and binding obligations of each party, enforceabLe against such party in accordance with its terms.
15. Subpoenas. If Client requests BDO to object to or respond to, or BDO receives and responds to, a validly issued third party subpoena, court order, government regulatory inquiry, or other similar request for, or legal process For the production of, documents and/or testimony relative to information we obtained and/or prepared during the course of this or any prior engagements with Client, you agree to compensate us for all time BDO expends in connection with such response, at our standard rates, and to reimburse BDO for all related out-of-pocket costs (incLuding outside attorneys' fees) that we incur.
16. Email Communications. BDO disclaims and waives, and the Client releases BDO from all liability for the interception or unintentional disclosure of e-mail transmissions or for the unauthorized use or failed delivery of e-mails transmitted or received by BDO in connection with the performance of the Services.
47. External Computing Options. If, at the Client's request, any member of the BDO Group agrees to use certain external commercial services, including but not limited to services for cloud storage, remote access, third party software and/or file sharing options (collectively "External Computinq Options"), that are outside of BDO's standard security protocol, the Client acknowledges that such External Computing Options may be associated with heightened security and privacy risks. Accordingly, BDO Group disclaims, and the Client agrees to release BDO Group from, and indemnify BDO Group for, all liability arising out o( or related to the use of such External Computing Options.
6 lo
66 IBDO
18. Electronic Transmisstons. This agreement may be transmitted in electronic format and shall not be denied legal effect solely because it was formed or transmitted, in whole or in part, by electronic record; however, this agreement must then remain capable of being retained and accurately reproduced, from time to time, by electronic record by the parties to this agreement and all other persons or entities required by law. An electronically transmitted signature to this agreement will be deemed an acceptable original for purposes of consummating this agreement and binding the party providing such electronic signature.
19. Severability. If any portion of this agreement is held to be void, invalid, or otherwise unenforceabLe in whole or in part, for any reason whatsoever, such portion of this agreement shall be amended to the minimum extent required to make the provision enforceabLe and the remaining portions o( this agreement shall remain in full force and effect.
20. Independent Contractor. BDO is providing the Services to Client as an independent contractor bound by the terms hereof to perform the Services pursuant to the Client's instructions.
BDO's obligations to Client are exclusively contractual in nature. This agreement does not create any agency, employment, partnership, joint venture, trust, or other fiduciary relationship between the parties. Neither BDO nor Client shall have the right to bind the other to any third party or otherwise to act in any way as a representative or agent of the other except as otherwise agreed in writing between the parties.
21. Confidentiality. Each of the parties hereto shall treat and keep all the "Confidential Information" as confidential, with at least the same degree or care as it accords to its own confidential information, but in no event less than a reasonable degree of care. Each party shall disclose the Confidential Information only to its employees, partners, contractors, agents or its legal or other advisors, provided that they have: (i) each been informed of the confidential, proprietary and secret nature of the Confidential Information, or are subject to a binding, preexisting obligation of confidentiality no less stringent than the requirements of this agreement and (ii) a demonstrabLe need to review such Confidential Information. "Confidential Information" means all non-public information that is marked as "confidential" or "proprietary" or has commercial value in the party's business and is obtained by one party (the "Receiving Party") from the other party (the "Disclosing, Party"). ALL terms of this agreement are considered Confidential Information. Notwithstanding the foregoing, Confidential Information shall not include any information that was or is: (a) known to the Receiving Party prior to disclosure by the Disclosing Party; (b) as of the time of its disclosure, or thereafter becomes, part of the public domain through a source other than the Receiving Party; (c) made known to the Receiving Party by a third person who is not subject to any confidentiality obligation known to Receiving Party and such third party does not impose any confidentiaLity obligation on the Receiving Party with respect to such information; (d) required to be disclosed pursuant to governmental authority, professional obligation, law, decree regulation, subpoena or court order; or (e) independently developed by the Receiving Party. If BDO is providing tax services for the Client, in no case shall the tax treatment or the tax structure of any transaction be treated as confidential as provided in Treas. Reg. sec.
1.6011-4(b)(3). lfdisclosureisrequiredpursuanttosubsection(d)above,theReceivingPartyshaLL (other than in connection with routine supervisory examinations by regulatory authorities with jurisdiction and without breaching any legal or regulatory requirement), to the extent legally permissible, provide prior written notice thereof to allow the Disclosing Party to seek a protective order or other appropriate relief. Upon the request of the Disclosing Party, the Receiving Party shall return or destroy all of the Confidential Information except for: (y) copies retained in work paper files retained to comply with a party's professional or legal obligations; and (z) such 7 67
IBDQ
Confidential Information retained in accordance with the Receiving Party's normal data back-up procedures
22. Restricted Federal Data. The parties agree that the Services are not intended to involve the processing of Restricted Data, defined as data subject to Laws, regulations or government-wide policies that require safeguarding or dissemination controls, including the Federal Acquisition Regulations ("FAR"), the Defense Federal Acquisition Regulation Supplement ("DFARS"), the International Traffic in Arms Regulation ("ITAR"), the Export Administration Regulations ("EAR"), and the Arms Export Control Act ("AECA"). For clarity, and without limiting the foregoing, controlled unclassified information ("CUI") shall be included in the definition o( Restricted Data. Client shall not provide or otherwise make available Restricted Data to BDO unless expressly agreed to in advance in writing by BDO. If Client becomes aware that any known or suspected Restricted Data will be or has been disclosed to BDO by Client or otherwise in connection with the Services, Client will immediately notify BDO in writing to requlatedg,[email protected] and will cease any further transfer of such data unless and until BDO expressly agrees in writing. Client will fully cooperate with BDO in the investigation of and response to any known or suspected Restricted Data that Client has disclosed to BDO notwithstanding the foregoing. Client further agrees that it will be responsible for all fees, costs and expenses associated with processing of Restricted Data, incLuding without limitation additional fees, costs and expenses related to compliance with obligations with respect to such Restricted Data.
23. Intellectual Property. BDO shall retain the right to reuse the ideas, concepts, know-how, and techniques derived from the rendering of the Services so long as it does not require the disclosure of any of Client's Confidential Information (as defined above). BDO shall be entitled to all protections afforded under State and Federal statutory or common Law with respect to any report, computer program (source code and object code) or programming and/or material documentation, manual, chart, specification, formula, database architecture, template, system model, copyright, diagram, description, screen display, schematic, blueprint drawing, tape, license, listing, invention, record, development frameworks, code Libraries, best practices, general knowledge, skills and experience, or other materials preexisting the execution of this agreement ("BDO Intellectual Property"). Unless otherwise specifically stated in this agreement, the reproduction, distribution or transfer, by any means or methods, whether direct or indirect, of any of BDO's or its agents' Intellectual Property or proprietary information by the Client is strictly prohibited.
24. Licensing Representation. To the extent necessary for BDO to perform its obligations described herein, Client represents and warrants that it will obtain, maintain and comply with all of the licenses, consents, permits, approvals and authorizations that are necessary to allow BDO and its employees, contractors and subcontractors to access and use the services or software provided for the benefit of Client under Client's third-party services contracts, licenses or other contracts granting Client the right to access, use or receive services or software (each a " Re resentation"). Upon BDO's request, Client will provide BDO any references available evidencing the Licensing Representation (e.g., order number, customer support identifier). Tools subject to this Licensing Representation are hereby deemed External Computing Options (as defined in this Agreement). Client hereby releases BDO Group from all claims and liabilities resulting from (i) BDO's reliance on a Licensing Representation and (ii) the functionality of any third-party software or services used or accessed by BDO.
8 ('2.
68 IBDO
25. Non-CPA Notice Requirement. BDO is owned by professionals who hold CPA licenses.
Depending on the nature of the Services being provided, from time to time non-CPA personnel may be involved in providing certain Services hereunder.
26. Entire Agreement. This agreement sets forth the entire agreement between the parties with respect to the subject matter herein, superseding all prior agreements, negotiations, or understandings, whether oral or written, with respect to the subject matter herein. This agreement may not be changed, modified, or waived in whole or part except by an instrument in writing signed by both parties.
Please acknowledge your acceptance of the foregoing by signing and returning a copy of this agreement to Brian ALten.
If you have any questions, please contact Brian ALten. We look forward to working with you.
Very truly yours,
BDO USA
By:
Name: Brian Alten, CPA
Title: Assurance Market Managing Principal
By signing below, the authorized signatory represents that he/she has power and authority and has obtained all approvals, authorizations and consents necessary to enter into this agreement on behalf of the Client set forth below for whom the authorized signatory is executing this agreement.
The authorized signatory represents that this agreement constitutes the Legal, valid and binding obligation of the Client set forth below For whom the authorized signatory is executing this agreement and is enforceable against the Client in accordance with its terms and conditions.
Accepted and Agreed to by:
South Gate Housing Authority
By:
Print Name: Carol Averell
Print Title: Housing Manager
(Please sign and return to us one fully executed copy; retain a copy for your files) The Data Privacy Policy For BDO USA and its subsidiaries is located at https://www.bdo.com/Legal- privacy/client-data-privacy-policy. If you have questions about this Privacy Policy, please contact us at [email protected].
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Attachment B
Agenda Bill 7/28/26
Amendment No. 3 to
Contract No. 2022-85-AC
A:[14ENDMENT N0, 3 TO CONTRACI' N0. 2022-85-AC FOR
PROFESSIONAL SERVICES FOR GENERAL ACCOUNTING SERVICES AND FINANCIAL ASSISTANCE BRTWEEN THE CITY OF 80UTH
GATE AND BDO USA, LLP
This ArnendmentNo. 3 to ContractNo. 2022-85-AC for Professional Services for General Accounting Services and Fii'iancial Assistance ("AmendmentNo. 3") is made and entered into on July 1, 2025, retroactively, by and between the City of South Gate, a municipal corporation ("City"), and BDO USA, ("Consultant"). City and Consultant are sometimes hereinafter individually referred to as a "Party" and collectively as 4'Parties."
RECIT ALS
WHEREAS, on September 27, 2022, the City Manager approved Contract No. 2022-85- AC with Consultant ("Agreement") for General Accounting Services and Financial Assistance in an amount not to exceed Twenty-Five Thousand Dollars ($25,000).
WHEREAS, onAugust 16, 2023, City and Consultant executed AmendmentNo, 1 to the Agreement to extend General Accounting and Financial Assistance services; W:F[ERF,AS, on September 26, 2024, City and Consultant executed Amendment No. 2 to the Agreemqnt to extend General Accounting and Financial Assistance setvices; and WHEREAS, City and Consultant desire to execute Amendmeiit No. 3 to the Agreement to extend services identified in the Scope of Work, attached hereto as Exhibit "A" and made a part of this Amendment, for an additional year in an amount not to exceed Twenty-Five Thousand Dollars ($25,000), under the terms and conditions of the Agreement, bringing the aggregate total ofthe Agreement, AmendmentNos, 1, 2 and 3 to One Hundred Thousand Dollars ($100,000).
NOW, THEREFORE, the Patties hereby agree as follows:
1. MODIFICATION TO AGREEMENT
1.1 TERM OF AGREEMENT. The term of the Agreement, including Amendment Nos, 1 and 2 is extended for one (1) year begirining July 1, 2025, through June 30, 2026, unless otherwise expressly extended and agreed to by both Parties in writing, or terminated by either Party as provided herein,
1.2 COll'[PENSATION. The amount of compensation paid by City to Consultant for the additional scope of work identified in Exhibit "A=' shall not exceed Twenty-Five Thousand Dollars ($25,000),
2. EFFECTIVE DATE. The effective date of this Amendment No. 3 is retroactive to July !, 2025, and will remain in effect for one (1) year through and including June 30, 2026, unless otherwise terminated in accordance with the terms ofthe Agreement.
70 Amendment No. 3 to
Contract No. 2022-85-AC
3. EFFECT OF AMENDMENTS, Except as expressly ainended lierein, all other teri'ns and conditions of the Agreement atid its Amendments, Attacl'unents and Exhibits thereto, shall remain unchanged and itt full force and effect. All recitals to this Ai'nendment No. 3 are incorporated into the Agreement as modified by this Amendmertt No. 3. Furthermore, City reserves the right to augment or reduce the scope of work as the City deems necessaiy.
IN WITNESS WHEREOF, the Parties )iereto have caused this AmendmentNo. 3 to be executed and attested by their respective officers thereunto duly autl'iorized.
CITY OF
Rob ouston, City Manager
Dated:
4/el'zmr
ATTEST:
By:
Yodit laze, City Clerk
(SEAL)
APPROVED AS TO FORM:
By:
F. Salinas, City Attorney
BDO USA,:
By:
Brian Alten, CPA Partner
Dated: 8/27/2025
15 71
EXHIBIT "A"
IBDQ
Tel: 215-564-190o
Fax: 215-564-3940
www.bdo.com
1801 Market Street, Suite 1700
Pliiladelphia, PA 151103
June 4, 2025
City of South Gate
Attn: Carol Averell, Housing Manager
8650 California Avenue
South Gate, CA 90280
Re: Agreement for Professional Services
Dear Ms. Averell:
Thank you for allowing us to propose professional services to the City of South Gate Housing Authority. We appreciate the opportunity to provide exceptional professional services to the City of South Gate Housing Authority ("g;" or "g"), Your services will be prov'ided by BDO USA (collectively "BDO" or "we"). This agreement is effective on July 1, 2025, and will be good through June 30, 2026.
Scope of Services
As agreed, BDO will provide services (the "Services") that include the following general accounting servtces, financial expertise, and assistance:
Analyze, prepare, and submit the monthly Voucher Management System (VMS) submission to HLID.
* AnaLyze and prepare monthly statements of revenue, expenses, and net position.
Prepare monthly bank reconciliation and reconcile bank statement balance to the general ledger; Prepare JVs to reconcile.
Prepare monthly calculation and JV posting of earned administrative fees and HAP revenues.
* Analyze and prepare the monthly board report for the Board of Comm'issioners.
* Analyze and prepare calculations for the HAP program reserve balance. * Analyze and update the monthly port-in register and prepare JV. * Analyze and prepare JV to record monthly fraud recovery revenue. * Prepare year-end unaudited and audited Ftnancial Data Schedule (FDS) and submit to REAC.
BOO USA Terers tO BDO LISA, p.c., a Vlrglnla pmfessional corporation, alSO doing builness in Certain jurisdictions mth an alternativg Identifying abbrevlakioni such as Corp. or p.s.c.
BDO USA, p.c. Is the u.s. mennber Of BDO Intemational Limited, a OX company limited b7 guaranteei and fomis part oT the Intematlanal BOO network of Independent member firms.
BOO Is the brand name for the BDO nekwo* and for each of the BDO Member Firms. 72 IBDQ
Review HUD correspondence and reconctle HUD funding.
Any Service not specifically described herein is outside the scope of this agreement.
Fee Arrangement
BDO's fee for Services will be the firm's hourly rates, as noted below, plus costs for out-of-pocket expenditures. The total annual fees shall not exceed !525,000; and client will only be billed for work effort required.
Hourly Rates
The hourly rates for the employees of BDO who will be providing the Services are as follows:
Staff HourlyRate
Partner 5260
Director S200-5235
Manager !5150-5195
Senior 5130-!5145
Accountant 5125
Work will be assigned to the staff based on the skill set that is required to complete the task. Rates may increase each renewal year not to exceed !)5 per level.
The following terms and condttions shall apply to the Services provided by BDO under this agreement:
1. General. Unless the parties specifically state in writing that they intend to modffy a term of this agreement, the terms of this agreement shall prevail.
2. Russia Sanctions. By executing this Agreement, Client represents that tt ts not owned or controlled, directly or indirectly, by one or more Russian citizen(s), Russian national(s), persons physically located in Russia or entity(s) organized under the laws of Russia. Client agrees that if at any time while BDO is providing services to Client the foregoing representation is no longer true, Client will immediately notify BDO.
3. Termtnation. Each party shall have the right to terminate this agreement at any time by giving written notice to the other party not less than 30 bustness days before the proposed effecttve date of termination. BDO may terminate this agreement and outstanding Services immediately if BDO reasonably determines that it must do so to comply with applicable professional standards, applicable laws or regulations (e.g., a conflict of tnterest arises). Those provisions in this agreement that, by their very nature, are intended to survive termination shall survtve after the termination of this agreement, including, but not limited to, the parties' obligations related to any of the following provisions: indemnification, limitations on liability, confidentiaLity, dispute resolution, payment and reimbursement obligations, limitations on use or reliance, and non- solicitation.
If this agreement is terminated Client agrees to compensate BDO for the Services performed and expenses tncurred through the effective date of term'ination. To the extent Client terminates this agreement, any licensing arrangements under which Client receives from BDO a license to use, or obtain access to, External Computing Options (as defined below), Client agrees that it will be responsible for all fees and expenses associated with such licenses for External Computing Options 2 IJ 73
IBDO
through and including the date that is thirty days after date the Client provides such termination notice to BDO.
4. Indemnffication and Limitation of Liability. As the Services are intended for Client and not third parties, Client agrees to release, tndemnify and hold harmless BDO and its partners, principals, employees, affiliates, contractors and agents (collectively "") from and against all claims, liabilities, damages or expenses (tncluding attorneys' fees) of any kind relating to the Services or this agreement, whether aristng in contract, statute, tort (including without limitation, negligence) or otherwise (collectively, the "g") that are brought by a third party.
Client further agrees to release, indemntfy and hold harmless BDO Group from all Claims relating to the Services or this Agreement attributable to any misrepresentations made by Client. Except to the extent finally determined to have resulted from BDO Group's fraud or intentional misconduct, BDO Group's aggregate liability to Client for all direct or third-party Claims shall not exceed the amount of fees paid by Client to BDO under this agreement. In no event shall BDO Group be liable for consequential, special, indirect, incidental, punitive, or exemplary tosses or damages, loss of profits or losses resulting from loss of data, bustness or goodwill relating to this agreement, regardless of whether BDO has been advised of the possibility of such damages. Client shall bring any Claims related to the Services or otherwise related to this agreement no Later than one year after (i) the completion of the Services set forth herein or (ti) tf this agreement was terminated prior to completion of the Services, the date this agreement was terminated. In no event shall the preceding sentence extend any otherwise legally applicable period of limitations on such Claims.
5. Third-Parties and Use. All Services and deliverables hereunder shall be solely for Client's use and benefit pursuant to our client relationship. This engagement does not create privity between BDO and any person or party other than Client and is not intended for the express or implied benefit of any third party. No third party is entitled to rely, in any manner or for any purpose, on the Services or deliverabLes of BDO hereunder.
6. BDO Responsibilities. BDO's Services will not constitute an audtt, review, compilation, examination or other form of attest engagement. BDO shall have no responsibility to address any legal matters or questions of law, After completion of the Services, BDO wtll have no responsibility to update its advice, recommendattons or work product for changes or modifications to the law and regulattons or for subsequent events or transactions, unless Client separately engages BDO in writing to do so.
7. Client Responsibilities. For BDO to remain independent, professional standards require BDO to maintain certain respective roles and relationshtps with Client regarding the Services.
Client understands and agrees that BDO will not perform management functions or make management decisions on behalf of Client. However, BDO will provide advice and recommendations to assist management of Client in performtng its functions and fulfilling its responsibilities. In connection with BDO's provision of Services, Client agrees that Client shall perform the following functions: (a) make all management decisions and perform all management functtons with respect to the Services performed by BDO; (b) assign an individual who possesses suitable skill, knowledge and experience to oversee such Services and to evaluate the adequacy and results of such Services; and (c) accept responsibiltty for the results of such Services.
Because professional and certain regulatory standards require us to be independent, in both fact and appearance, with respect to the Client in the performance of our Services, any discussions that you have with personnel of BDO regarding employment could pose a threat to our independence. 3 74
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Therefore, BDO requests that you inform us prior to any such discussions so that we can tmplement appropriate safeguards to maintain our independence.
The Client shall not employ or divert any employee or independent contractor of BDO. The obligations imposed by this paragraph shall survive the terminatton of thts Agreement and continue for a period of one year following such termination. As Liquidated damages for any breach of the obligations imposed by this paragraph, the Client shall pay to BDO an amount equal to 1 00% of the annual salary of any employee or 100% of the payments to any independent subcontractor over the most recent 12-month period, payable by BDO to the relevant employee or independent subcontractor at the time of such breach.
8. Client Materials. BDO shall be entitled to rely on and assume, without independent verification, that all representations, assumptions, information and data supplied by or on behalf of Client, its personnel, representatives, and agents (the "Client Materials") are complete and accurate. Client is responsible for ensuring that all Client Materials provided to BDO may be transferred to BDO and processed tn accordance with the terms of this agreement and applicable laws, and that to the extent required thereunder Client has obtained all consents required for BDO's receipt and use of the Client Materials. Client agrees that it will not transmtt or make accessible to BDO in any manner personally identifiable information unless reasonably required for BDO's performance of the Services. BDO will not audit or otherwtse verify the accuracy or completeness of the data you submit, although we may need to ask you for clarification of some of the information. Client shall be responsible for maintenance and retention of its records. Unless otherwise agreed to by the parties, BDO shall not assume any responsibility for any financial reporting with respect to the Services.
9. Ownership of Working Papers. In connection with the performance of the Services, we will prepare records and deLiverables as set forth above. We also will prepare documents that support our work and include items such as work programs and analyses that do not constitute part of Client's records ("Working, Papers"1. The Working Papers prepared pursuant to this agreement are the property of BDO. The Working Papers constitute confidential, proprietary, and trade secret information, and will be retained by BDO in accordance with our policies and procedures and all applicable laws.
10. Additional Fees and Expenses. The amount of our fees is based upon the expectation that certain information and assistance will be received by BDO in a timely manner from CHent as set forth in this agreement. If BDO believes an additional fee ts required as the result of the failure of Client to meet any of these requests for information or for any other reason, BDO will inform you in a timely manner.
Our standard practice is to render our invoices on a monthly basis. Payment of our invoices ts due upon receipt. Invoices that are unpaid 30 days past the invoice date are deemed delinquent and we reserve the right to charge interest on the past due amount at the lesser of I.O% per month or the maximum amount permitted by law. If an account has fees that are not paid in a timely manner, we then reserve the right to suspend our Services, terminate the licensing arrangements under which you receive a license to use, or suspend your access to, External Computing Options provided through BDO, wtthhold delivery of any deliverables, or withdraw from this engagement entirely. If any collection action is required, you agree to reimburse us for all our costs of collection, including without limitation, attorneys' fees. 4 75
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41 Assignment and Sole Recourse. In performing the Services hereunde5 BDO may assign its rights to perform a portion of the Services to, and may engage, the service of entities owned in whole or in part by BDO ("Affiliates"), members of the BDO Alliance USA (a nationwide association of independently-owned local and regional accounting, consulting and service firms, (" "), independent member firms of the international BDO network ("Member Firms"), and independent contractors, incLuding but not limited to parties who render auxiliary services ("Contractors" and, together with Affiliates, Alliance Firms and Member Firms, collectively, " Party Service Providers." If a Third-Party Service Provider is uttLized or assignment is made, Client agrees that, unless Client contracts directly with the Third-Party Service Provider, substantially all of the appltcabLe terms and conditions set forth in the agreement, shall apply to the Third-Party Service Provider. BDO agrees that it shall not permit the Third-Party Service Provider to perform any work reLating to the Servtces until the Third-Party Service Provider agrees to be bound by the applicable terms and conditions of thts agreement. BDO further agrees that it will remain primarily responsible for the Services, unless Client and BDO agree otherwise, and BDO wilL ensure that the work of the Third-Party Service Provider is performed in accordance with this agreement. Although applicable privacy Laws may vary depending on the jurisdiction and may provide Less or different protection than those of Client's home country, BDO requires Third-Party Service Providers to agree to maintain the confidentiality of Client's information and observe BDO's policies concerning any confidential client tnformation that BDO provides to Third-Party Service Providers. To the extent you have any Claims against a Member Firm that is a Third Party Service Provider in any way arising from, in respect of or in connection with the Services or this agreement, you agree that you shall bring such Claim(s) against BDO instead of such Member Firm, except to the extent finally judicially determined to have resulted from the fraud or intentional misconduct of such Member Firm. A Member Firm may enforce any Limitations or exclusions of liability available to BDO under tms agreement.
Without our prior written consent, Client may not assign this agreement except to a party that acquires substantially all of your assets and operations.
12. Dispute Resolution, Any dispute or clafm between you and BDO arising out of or relating to this agreement or a breach of this agreement, including, without limitation, claims for breach of contract, professional negligence, breach of fiduciary duty, misrepresentation, fraud or cla'ims based in whole or in part on any other common-law, statutory, regulatory, legal or equitable theory, and disputes regarding all fees, including attorneys' fees of any type, and/or costs charged under this agreement ("Arbitration Claims") (except to the extent provided below) shall be submitted to binding arbitration administered by the American Arbitration Association (""), in accordance with its Commercial Arbitration Rules, Arbttration Claims shall be brought in a party's individual capacity, and not as a plaintiff or class member in any purported class or representative proceeding. Arbftration Claims shall be heard by a panel of three (3) arbttrators, to be chosen as follows: withtn fifteen (15) days after the commencement of arbitration, each party shall select one person to act as arbitrator; thereafter, the two individually selected arbitrators shall select a third arbitrator within ten (10) days of their appointment. If the arbitrators selected by the parties are unable or fail to agree upon the third arbitrator, the third arbitrator shall be selected by the AAA. The arbitration panel shall have the power to rule upon its own jurisdiction and authortty, including any objection to the inittal or contfnuing existence, validtty, effectiveness or scope of this arbitration agreement.
The arbitration panel may not consolidate more than one person's claims and may not otherwise preside over any form of a representative or class proceeding. The arbitration panel shall have no authority to award non-monetary or equitable re(ief, but nothing herein shall be construed as a prohibition agatnst a party from pursuing non-monetary or equitable relief in a 5 76
IBDQ
federal or state court. The place of arbitration shall be the ctty tn whtch the BDO office providing the majority of the Services involved ts located, unless the parties agree in writing to a dffferent location. Regardless of where the arbitratton proceeding actually takes place, all aspects of the arbitration and this agreement shall be governed by the provisions of the laws of the State of New York (except if there is no applicable state law providfng for such arbitration, then the Federal Arbitration Act shall apply) and the procedural and substanttve law of such state shall be applied mthout reference to conflict of law rules. The parties shall bear thetr own legal fees and costs for all Arbitration Claims. The award of the arbitrators shall be accompanfed by a reasoned opinion, and judgment on the award rendered by the arbitration panel may be entered in any court having jurisdiction thereof. Except as may be required by law or to enforce an award, neither a party nor an arbftrator may disclose the existence, content, or results of any arbitration hereunder without the prior written consent of the parties to this agreement.
The parttes to this agreement acknowledge that by agreeing to this arbitration provision, they are gfving up the right to litigate claims against each other, and important rights that would be available in litigation, including the right to trial by judge or jury, to extensive discovery and to appeal an adverse decision. The parties acknowledge that they have read and understand this arbitration provision, and that they voluntarily agree to binding arbitration. 13, Conflfcts of Interest. BDO is not aware of any conflicts of interest wtth respect to any of the names Client has provided. BDO is not responsible for continuously monitoring other potential conflicts that could arise during the course of the engagement, although we will inform Client promptly should any come to our attention. We reserve the right to restgn from this engagement at any time if conflicts of interest arise or become known to us. Additionally, our engagement by Client will in no way preclude us from being engaged by any other party in the future.
Notwithstanding anything contained in confidentiaLtty provisions set forth heretn, BDO shall be permitted to disclose that it is engaged to provide the Services to Client under this agreement tf BDO in its reasonable professional judgment determines that such dtsclosure is required tn connection with BDO's provision of services on behalf of other clients of BDO, including, without limitation, professional services engagements under which BDO personnel act as professionals in legal proceedings that require disclosures, arbitrators in post-acquisition disputes or act as expert witnesses.
14. Power and Authorfty. Each of the parties hereto has all requisite power and authority to execute and deliver this agreement and to carry out and perform its respective obligations hereunder. This agreement constitutes the Legal, valid and bindtng obligattons of each party, enforceable against such party in accordance with its terms.
15. Subpoenas. If Client requests BDO to object to or respond to, or BDO receives and responds to, a validLy issued third party subpoena, court order, government regulatory inquiry, or other similar request for, or legal process for the production of, documents and/or testimony relative to information we obtained and/or prepared during the course of this or any prior engagements with Client, you agree to compensate us for all time BDO expends in connection with such response, at our standard rates, and to reimburse BDO for all related out-of-pocket costs (including outside attorneys' fees) that we incur.
16. Email Communications. BDO disclaims and waives, and the Client releases BDO from all liability for the interception or unintentional disclosure of e-mail transmissions or for the 6 21
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unauthorized use or failed delivery of e-mails transmitted or received by BDO in connection with the performance of the Services.
17. External Computing Options. If, at the Client's request, any member of the BDO Group agrees tO use certain external commercial services, includ!ng but not limited to services for cloud storage, remote access, third party software and/or file sharing options (collectively " Computtnq Options"), that are outside of BDO's standard security protocol, the Client acknowledges that such External Computing Options may be associated with heightened security and privacy risks. Accordingly, BDO Group disclaims, and the Client agrees to release BDO Group from, and indemnify BDO Group for, all liability arising out of or related to the use of such External Computing Options.
18. Electronic Transmisstons. This agreement may be transmitted in electronic format and shall not be denied legal effect solely because it was formed or transmitted, in whole or in part, by electronic record; however, this agreement must then remain capable of being retained and accurately reproduced, from time to time, by electronic record by the parties to this agreement and all other persons or enttties required by law. An electronically transmitted signature to this agreement will be deemed an acceptable original for purposes of consummating this agreement and binding the party providing such electronic signature.
19. Severability. If any portton of this agreement ts held to be void, invalid, or otherwise unenforceable in whole or in part, for any reason whatsoever, such portion of this agreement shalL be amended to the minimum extent required to make the provision enforceable and the remaining portions of tms agreement shall remain in full force and effect.
20. Independent Contractor. BDO is prov'iding the Services to Client as an independent contractor bound by the terms hereof to perform the Services pursuant to the Client's instructions.
BDO's obligattons to Cltent are exclusively contractual in nature. This agreement does not create any agency, employment, partnership, joint venture, trust, or other fiduciary relationship between the parties. Neither BDO nor Client shall have the right to bind the other to any third party or otherwise to act tn any way as a representative or agent of the other except as otherwise agreed tn writing between the parties.
21. Confidentiality. Each of the parties hereto shall treat and keep all the "Confidential Information" as confidential, with at least the same degree of care as it accords to its own confidential information, but in no event less than a reasonable degree of care. Each party shall disclose the Confidential Information only to its employees, partners, contractors, agents or its legal or other advisors, provided that they have: (i) each been informed of the confidenttal, proprietary and secret nature of the Confidential Information, or are subject to a b'indtng, preexisting obligation of confidentiality no less stringent than the requirements of this agreement and (ii) a demonstrable need to review such Confidential Information. "Confidential Information" means all non-public information that is marked as "confidential" or "proprietary" or has commercial value in the party's business and is obtained by one party (the "Receivinq Party") from the other party (the "Disclosing Party"). All terms of this agreement are considered Confidential Information. Notwithstanding the foregoing, Confidential Information shall not include any information that was or is: (a) known to the Receiving Party prior to disclosure by the Disclosing Party; (b) as of the time of its disclosure, or thereafter becomes, part of the public domain through a source other than the Receiving Party; (c) made known to the Receiving Party by a third person who is not subject to any confidentiality obligation known to Receiving Party and such third party does not impose any confidentiality obligation on the Receiving Party with respect to such 7 78
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information; (d) required to be disclosed pursuant to governmental authority, professional obligation, law, decree regulatton, subpoena or court order; or (e) independently developed by the Receiving Party, If BDO is providing tax services for the Client, in no case shall the tax treatment or the tax structure of any transaction be treated as confidential as provided in Treas. Reg. sec.
1.6011 -4(b)(3). If disclosure is required pursuant to subsection (d) above, the Receiving Party shall (other than in connection with routine supervisory examinations by regulatory authorities with jurisdtction and without breaching any legal or regulatory requirement), to the extent Legally permissible, provide prior written notice thereof to allow the Disclosing Party to seek a protective order or other appropriate reltef. Upon the request of the Disclosfng Party, the Receiving Party shall return or destroy all of the Confidenttal Information except for: (y) copies retained in work paper files retained to comply with a party's professional or Legal obligattons; and (z) such Confidential Information retained in accordance with the Receiving Party's normal data back-up procedures.
22. Restricted Federal Data. The parties agree that the Services are not intended to involve the processing of Restricted Data, defined as data subject to laws, regulations or government-wide policies that require safeguarding or dissemination controls, including the Federal Acquisition Regulations ("FAR"), the Defense Federal Acquisition Regulation Supplement ("DFARS"), the International Traffic in Arms Regulation ("ITAR"), the Export Administration ReguLations ("EAR"), and the Arms Export Control Act ("AECA"). For clarity, and without limiting the foregoing, controlled unclassified tnformation ("CUI") shall be included tn the definition of Restricted Data. Client shall not provide or otherwise make avatlabLe Restricted Data to BDO unless expressly agreed to in advance in writing by BDO. If Client becomes aware that any known or suspected Restricted Data will be or has been disclosed to BDO by Client or otherwise in connection with the Services, Client will immediately notify BDO in writing to reguLatedg,[email protected] and will cease any further transfer of such data unless and until BDO expressly agrees in writing. Client will fully cooperate with BDO in the investigation of and response to any known or suspected Restricted Data that Client has disclosed to BDO notwithstanding the foregoing. Client further agrees that it will be responsible for all fees, costs and expenses assoctated with processing of Restricted Data, including without ltmitation additional fees, costs and expenses related to compliance with obligations with respect to such Restricted Data.
23. Intellectual Property. BDO shall retain the right to reuse the tdeas, concepts, know-how, and techniques derived from the rendering of the Services so long as it does not require the disclosure of any of Client's Confidential Information (as defined above). BDO shall be entitled to all protections afforded under State and Federal statutory or common law with respect to any report, computer program (source code and object code) or programming and/or material documentation, manual, chart, specification, formula, database architecture, template, system model, copyright, diagram, description, screen display, schematic, blueprint drawing, tape, license, listing, invention, record, development frameworks, code libraries, best practices, general knowledge, skills and experience, or other materials preexisting the execution of this agreement ("BDO Intellectual Property"). Unless otherwise specifically stated in thts agreement, the reproduction, distribution or transfer, by any means or methods, whether direct or indirect, of any of BDO's or its agents' Intellectual Property or proprietary information by the Client is strictly prohibited.
24. Licensing Representation. To the extent necessary for BDO to perform its obligations described herein, Client represents and warrants that it will obtain, maintain and comply with all of the licenses, consents, permits, approvals and authorizations that are necessary to allow BDO and its employees, contractors and subcontractors to access and use the servtces or software 8 79
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provided for the benefit of Client under Cltent's third-party services contracts, licenses or other contracts granting Client the right to access, use or receive services or software (each a " Representation"). Upon BDO's request, Client will provide BDO any references available evidencing the Licensing Representation (e.g,, order number, Customer Support identifier). Tools subject to this Licensing Representation are hereby deemed External Computing Options (as defined in this Agreement). Client hereby releases BDO Group from all claims and liabtlities resulting from (i) BDO's reLtance on a Licensing Representatton and (ii) the functionality of any third-party software or services used or accessed by BDO.
25. Non-CPA Notice Requirement. BDO is owned by professionals who hold CPA licenses.
Depending on the nature of the Services being provided, from time to time non-CPA personnel may be involved in providing certa'in Services hereunder.
26. Entire Agreement. This agreement sets forth the entire agreement between the parties with respect to the subject matter herein, superseding all prior agreements, negotiations, or understandings, whether oral or written, with respect to the subject matter herein. This agreement may not be changed, modified, or waived in whole or part except by an instrument in writing signed by both parties.
Please acknowledge your acceptance of the foregoing by signtng and returning a copy of thts agreement to Brian Alten, CPA, Assurance Market Managing Principal.
If you have any questions, please contact Brian Alten, BDO ASSURANCE MARKET MANAGING PRINCIPAL. We look forward to working with you.
Very truly yours,
BDO USA
By:
Name: Brian Alten, CPA
Title: BDO ASSURANCE MARKET MANAGING PRINCIPAL
By signing below, the authorized stgnatory represents that he/she has power and authority and has obtained all approvals, authorizattons and consents necessary to enter into this agreement on behalf of the Client set forth below for whom the authorized signatory is executing this agreement. The authorized signatory represents that thiS agreement constitutes the legal, Valid and binding obligation of the Client set forth below for whom the authorized signatory is executing this agreement and is enforceable against the Client in accordance wtth its terms and condittons,
Accepted and Agreed to by:
South Gate Housing Authority
B7:
Print Name:
Print Title:
9 l'% 80
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(Please sign and return to us one copy; retain a copy for your files) The Data Privacy Policy for BDO USA and its subsidiaries is located at https://ww.bdo.com/legal-privacy/client-data-privacy-policy. If you have questions about this Privacy Policy, please contact us at privacy(bdo,com. 10 2S
81 Agenda Bill 7/28/26
Amendment No. 2
Contract No. 2022-85-AC
AMENDMENT N0. 2 TO CONTRACT N0. 2022-85-AC FOR
PROFESSIONAL SERVICES FOR GENERAL ACCOUNTING SERVICES
AND FINANCIAL ASSISTANCE BETWEEN THE CITY OF SOUTH
GATE AND BDO USA, LLP
This Amendment No. 2 to Contract No. 2022-85-AC for Professional Services for General Accounting Services and Financial Assistance ("Amendment No. 2") is made and entered into on July 1, 2024, retroactively, by and between the City of South Gate, a municipal corporation ("City"), and BDO USA, LLP., a California Limited Liability Partnership ("Consultant"). City and Consultant are sometimes hereinafter individually referred to as a "Party" and collectively as "Parties."
RECIT ALS
WHEREAS, on September 27, 2022, the City Manager approved Contract No. 2022-85- AC with Consultant ("Agreement") for General Accounting Services and Financial Assistance in an amount not to exceed Twenty-Five Thousand Dollars ($25,000).
WHEREAS, on August 16, 2023, City and Consultant executed Amendment No. I to the Agreement to extend General Accounting and Financial Assistance services; and WHEREAS, City and Consultant desire to execute Amendment No. 2 to extend services identified in the Scope of Work, attached hereto as Exhibit "A" and made a part of this Amendment, for an additional year in an amount not to exceed Twenty-Five thousand dollars ($25,000), under the terms and conditions of the Agreement, bringing the aggregate total of the Agreement, Amendment Nos. 1 and 2 to Seventy-Five Thousand Do}Jars ($75,000).
NOW, THEREFOR, the Parties hereby agree as follows:
1. MODIF'ICATION TO AGREEMENT
1.1 TERM OF AGREEMENT. The term of the Agreement, including Amendment Nos. l and 2, is extended retroactively for one (l) year beginning July 1, 2024, through Jiu'ie 30, 2025, unless otherwise expressly extended and agreed to by both Parties in writing, or terminated by either Party as provided herein.
1.2 COMPENSATION. The amount of compensation paid by City to Consultant for the additional scope of work identified in Exhibit "A" shall not exceed Twenty-Five Thousand Dollars ($25,000).
2. EFFECTIVE DATE. The effective date of this Amendment No. 2 is retroactive to July 1, 2024, and will remain in effect for one (l) year through and including June 30, 2025, unless otherwise terminated in accordance with the terms of the Agreement.
Z,=,
82 Amendment No. 2
Contract No. 2022-85-AC
3. EFFECT OF AMENDMENTS. Except as expressly amended herein, all other tertns and conditions of the Agreement and its Amendments, Attachments and Exhibits thereto, shall remain unchanged and in full force and effect. All recitals to this Amendment No. 2 are incorporated into the Agreement as modified by this Amendment No. 2. Furthermore, City reserves the right to augment or reduce the scope of work as the City deems necessaiy.
IN WITNESS WHEREOF, the Parties hereto have caused this AmendmentNo. lto be executed and attested by their respective officers thereunto duly authorized.
CITY OF SO
Rob Hoiisto-n', Cite Manager
Dated: 10-ai- 20'?-'(
ATTEST:
By:
Yod laze, City Clerk
(SEAL)
APPROVED AS TO FORM:
By:
l F. Salinas, City Attorney
BDO USA, LLP.:
BJ:
Brian Alten, CPA Partner
Dated: September 26, 2024
2'7 83
Exhibit "A"
IBDO
Tel: 215-564-1900
Fax: 215564-3940
www, bdo. com
1801 Market Street, Suite 1700
Philadelphia, PA 19103
August 16, 2024
City of South Gate
Attn: Carol Averell, Housing Manager
8650 California Avenue
South Gate, CA 90280
Re: Agreement for Professional Services
Dear Ms. Averell:
Thank you for aLlowing us to propose professional services to the City of South Gate Housing Authority. We appreciate the opportunity to provide exceptional professional services to the City of South Gate Housing Authority ("gi" or "y;"). Your services will be provided by BDO USA (collectively " BDO" or "we"). This agreement is effective on July 1, 2024, and will be good through June 30, 2025.
Scope of Services
As agreed, BDO will provide services (the "Services") thatinclude the following general accountty services, financial expertise, and assistance:
* Analyze, prepare, and submit the monthly Voucher Management System (VMS) submission to HUD.
Analyze and prepare monthly statements of revenue, expenses, and net position.
Prepare monthly bank reconciliation and reconcile bank statement balance to the general ledger; Prepare JVs to reconcile.
Prepare monthly calculation and JV posting of earned administrative fees and HAP revenues.
Analyze and prepare the monthly board report for the Board of Commissioners.
Analyze and prepare calculations for the HAP program reserve balance. ii Analyze and update the monthly port-in register and prepare JV. * Analyze and prepare JV to record monthly fraud recovery revenue.
Prepare year-end unaudited and audited Financial Data Schedule (FDS) and submit to REAC.
BDO USA refers tO BDO USA, P .c. , a Virginia prOfesSiOnal COTpoTatiOn, atsO doing busineis in certain jurisdictions wi(h an altemative identifying abbreviation, such asCoip. orP.S.C.
BDO LISA, p.c. is the u.s. member of aoo Intematlonal Limlted, a UK Compary limitm by guarantee, and IOTmS part Of the intemational BDOnetwork Of Independent memberfirmi.
8DO is the brand name for the B DO netwo* and for each of the BDO Me'nber Fkms. l'e)
84 IBDO
Review HUD correspondence and reconcile HLID funding.
Any Service not specifically described herein is outside the scope of this agreement.
Fee Arrangement
BDO's fee for Services will be the firm's hourly rates, as noted below, plus costs for out-of-pocket expenditures. The total annual fees shall notexceed 525,000; and clientwill only be billed for work effort required.
Hourly Rates
The hourly rates for the employees of BDO who will be providing 5jaff
Partrier
Director
Manager
Senior
Accountant
the Services are as follows:
Hourly Rate
5260
5195.5210
S150-5190
S125-5145
5120
Work will be assigned to the staff based on the skill set that is required to complete the task. Rates may increase each renewal year not to exceed 55 per level.
The following terms and conditions shall apply to the Services provided by BDO under this agreement:
1. General. Unless the parties specifically state in writing that they intend to modify a term of this agreement, the terms of this agreement shall prevail.
2. Russia Sanctions. By executing this Agreement, Client represents that it is not owned or controlled, directly or indirectly, by one or more Russian citizen(s), Russian national(s), persons physically located in Russia or entity(s) organized under the laws of Russia. Client agrees that if at any time white BDO is providing services to Client the foregoing representation is no longer true, Client will immediately notify BDO.
3. Termination. Each party shall have the right to terminate this agreementat any time by giving written notice to the other party not less than 30 business days before the proposed effective date of termination. BDO mayterminate this agreementand outstanding Services immediately if BDO reasonably determines that it must do so to comply with applicable professional standards, applicable laws or regulat'ons (e.g., a conflict of interest arises). Those provisions in this agreement that, by their very nature, are intended to survive termination shall survive after the termination of this agreement, including, but not limited to, the parties' obligations related to any of the following provisions: indemnification, limitations on liability, confidentiatity, dispute resolution, payment and reimbursement obligations, limitations on use or reliance, and non- solicitation.
If this agreementis terminated Client agrees to compensate BDO for the Services performed and expenses incurred through the effective date of termination. To the extent Client terminates this agreement, any licensing arrangements under which Client receives from BDO a license to use, or obtain access to, External Computing Options (as defined below), Client agrees that it will be responsible for all fees and expenses associated with such licenses for External Computing Options 2 2"J
85 IBDO
through and including the date that is thirty days after date the Client provides such termination notice to BDO.
4. Indemnification and Limitation of Liability. As the Services are intended for Client and not third parties, Client agrees to release, indemnify and hold harmless BDO and its partners, principals, employees, affiliates, contractors and agenti (collectively "") from and against all claims, liabilities, damages or expenses (including attorneys' fees) of any kind relating to the Services or this agreement, whether arising in contract, statute, tort (including without limitation, negligence) or otherwise (collectively, the "Claims") thatare brought by a third party.
Client further agrees to release, indemnify and hold harmless BDO Group from all Claims relating to the Services or this Agreementattributable to any misrepresentations made by Client. Except to the extent finally determined to have resulted from BDO Group's fraud or intentional misconduct, BDO Group's aggregate liability to Client for all direct or third-party Claims shall not exceed the amount of fees paid by Client to BDO under this agreement. In no event shall BDO Group be liable for consequential, special, indirect, incidental, punitive, or exemplary losses or damages, loss of profits or Losses resulting from loss of data, business or goodwill relating to U"iis agreement, regardless of whether BDO has been advised of the possibility of such damages. Client shall bring anyClaims related to the Services or otherwise related to this agreementno later than one year after (i) the completion of the Services set forth herein or (ii) if f'iis agreementwas terminated prior to completion of the Services, the date this agreementwas terminated. In no event shall the preceding sentence extend any otherwise legally applicable period of limitations on such Claims.
5. Third-PartiesandUse.AllServicesanddeliverableshereundershallbesoleLyforClient's use and benefit pursuant to our client relationship. This engagementdoes not create privity between BDO and any person or party other than Client and is not intended for the express or implied benefit of any third party. No third party is entitled to rely, in any manner or for any purpose, on the Services or deliverables of BDO hereunder.
6. BDO Responsibilities. BDO's Services will not constitute an audit, review, compilation, examination or other form of attest engagement. BDO shall have no responsibility to address any legal matters or questions of law. After completion of fie Services, BDO will have no responsibility to update its advice, recommendations or work product for changes or modifications to the law and regulations or for subsequent events or transactions, unless Client separately engages BDO in writing to do so.
7. Client Responsibilities. For BDO to remain independent, professional standards require BDO to maintain certain respective roles and relationships with Client regarding the Services.
Client understands and agrees that BDO will not perform management functions or make management decisions on behalf of Client. However, BDO will provide advice and recommendations to assist management of Client in performing its functions and fulfilling its responsibilities. In connection with BDO's provision of Services, Client agrees that Client shall perform the following functions: (a) makeall managementdecisions and perform all management functions with respect to the Services performed by BDO; (b) assign an individual who possesses 5uitable skill, knowledge and experience to oversee such Services and to evaluate the adequacy and results of such Services; and (c) accept responsibility for f'ie results of such Services.
Because professional and certain regulatory standards require us to be independent, in boU'i fact and appearance, with respect to the Client in the performance of our Services, any discussions that you have wif'i personnel of BDO regarding employment could pose a threat to our independence. 3 30
86 IBDO
Therefore, BDO requests that you inform us prior to any such discussions so that we can implement appropriate safeguards to maintain our independence.
The Client shall not employ or divert any employee or independent contractor of BDO. The obligations imposed by this paragraph shall survive the termination of this Agreement and continue for a period of one year following such termination. As liquidated damages for any breach of the obligations imposed by this paragraph, the Client shall pay to BDO an amount equal to 1 00% of the annual salary of any employee or 1 00% of the payments to any independent subcontractor over the most recent 1 2-month period, payable by BDO to the relevant employee or independent subcontractor at the time of such breach.
8. Client Materials. BDO shall be entitled to rely on and assume, without independent verification, that all representations, assumptions, information and data supplied by or on behalf of Client, its personnel, representatives, and agents (the "Client Materials") are complete and accurate. Client is responsible for ensuring f'iat all Client Materials provided to BDO may be transferred to BDO and processed in accordance with the terms of this agreementand applicable laws, and that to the extent required thereunder Client has obtained all consenti required for BDO's receipt and use of the Client Materials. Client agrees that it will not transmit or make accessible to BDO in any manner personally identifiable information unless reasonably required for BDO's performance of the Services. BDO will not audit or otherwise verify the accuracy or completeness of the data you submit, although we may need to ask you for clarification of some of the information. Client shall be responsible for maintenance and retention of its records. Unless otherwise agreed to by the parties, BDO shall not assume any responsibility for any financial reporting with respect to the Services.
9. Ownership of Working Papers. In connection with the performance of the Services, we will prepare records and delfverables as set forth above. We a(so will prepare documents that support our work and include items such as work programs and analyses that do not constitute part of Client's records ("Workin Pa ers"). The Working Papers prepared pursuantto this agreement are the property of BDO. The Working Papers constitute confidential, proprietary, and trade secret information, and will be retained by BDO in accordance with our policies and procedures and all applicable laws.
10. Additional Fees and Expenses. The amount of our fees is based upon the expectation that certain information and assistance will be receded by BDO in a timely manner from Client as set forth in this agreement. If BDO believes an additional fee is required as the result of the failure of Client to meet any of these requests for information or for any other reason, BDO will inform you in a timely manner.
Our standard practice is to render our invoices on a monthly basis. Payment of our invoices is due upon receipt. Invoices that are unpaid 30 days past the invoice date are deemed delinquent and we reserve U'ie right to charge interest on the past due amount at the lesser of 1.O% per month or the maximum amount permitted by law. If an account has fees that are not paid in a timely manner, we then reserve the right to suspend our Services, terminate the Licensing arrangements under which you receive a license to use, or suspend your access to, External Computing Options provided through BDO, withhold delivery of any deLfverables, or withdraw from this engagement entirely. If any collection action is required, you agree to reimburse us for all our costs of collection, including without limitation, attorneys' fees. 4 3) 87
IBDO
11. Assignment and Sole Recourse. In performing the Services hereunder, BDO may assign its rights to perform a portion of the Services to, and may engage, the service of entities owned in whole or in part by BDO (""), members of the BDO Alliance USA (a nationwide association of independently-owned local and regional accounting, consulting and service firms, (" Firms"), independent member firms of the international BDO network ("Member Firms"), and independent contractors, including but not limited to parties who render auxiliary services ("Contractors" and, together with Affiliates, Alliance Firms and Member Firms, collectively, ":
Party Service Providers." If a Third-Party Service Provider is utilized or assignment is made, Client agrees that, unless Client contracts directly with the Third-Party Service Provider, substantially all of the applicable terms and conditions set forth in the agreement, shall apply to the Third-Party Service Provider. BDO agrees that it shall not permit the Third- Party Service Provider to perform any work relating to the Services until the Third-Party Service Provider agrees to be bound by the applicabletermsandconditionsofthisagreement. BDOfurtheragreesthatitwillremainprimarily responsible for the Services, unless Client and BDO agree otherwise, and BDO will ensure that the work of the Third-Party Service Provider is performed in accordance with this agreement. Although applicable privacy laws may vary depending on the jurisdiction and may provide less or different protection than those of Client's home country, BDO requires Third-PartyService Providers to agree to maintain the confidentiality of Client's information and observe BDO's policies concerning any confidential client information that BDO provides to Third-Party Service Providers. To the extent you have any Claims against a Member Firm that is a Third Party Service Provider in any way arising from, in respect of or in connection with the Services or this agreement, you agree that you shall bring such Claim(s) againstBDO instead of such Member Firm, except to the extent finally judicially determined to have resulted from the fraud or intentional misconduct of such Member Firm. A Member Firm may enforce any limitations or exclusions of liability available to BDO under this agreement.
Without our prior written consent, Client may not assign this agreementexcept to a party that acquires substantially alL of your assets and operations.
12. DisputeResolution.AnydisputeorclaimbetweenyouandBDOartsingoutoforrelating to this agreement or a breach of this agreement, including, without limitation, claims for breachofcontract, professionalnegligence,breachoffiduciaryduty, misrepresentation,fraud or claims based in whole or in part on any other common-law, statutory, regulatory, legal or equitable theory, and disputes regarding all fees, including attorneys' fees of any type, and/a'a costs charged under this agreement ("Arbitration Claims") (except to the extent provided below) shall be submitted to binding arbitration admtnistered by the American Arbitratim Association("AAA"),inaccordancewtthitsCommercialArbitrationRules. ArbitrationClairns shall be brought in a party' sindividual capacity, and not as a plaintiff or class member in any purported class or representative proceeding. Arbitration Claims shall be heard by a panel d three (3)arbitrators, tobe chosen as follows: within fifteen (15) days after thecommencement of arbitration, each party shall select one person to act as arbitrator; thereafter, the two indivtdually selected arbitrators shall select a third arbitrator within ten (10) days of their appointment. If the arbitrators selected by the parties are unable or fail to agree upon fie thirdarbitrator,thethirdarbitratorshallbeselededbytheAAA. Thearbitrationpanelshall have the power to rule upon its own jurisdiction and authority, including any objedion to the initial or continuing existence, validity, effectiveness or scope of this arbitration agreement.
The arbitration panel may not consolidate more than one person's claims and may not otherwisepresideoveranyformofarepresentattveorclassproceeding. Thearbitrationpanel shall have no authority to award non-monetary or equitable relief, but nothing herein shall be construed as a prohibition against a party from pursuing non-monetary or equitable relief in a 5 88
IBDO
federal or state court. The place of arbttration shall be the city tn which the BDO office providtng the majority of the Services involved is located, unless the parties agree in writing to a dtfferent location. Regardless of where the arbitration proceeding actually takes place, all aspects of the arbttrationand thts agreement shallbe governed by the provisionsof the laws of the State of New York (except if there is no applicable state law providing for such arbttration, then the FederalArbttration Act shall apply)and the procedural and substantive law of such state shall be applim without reference to conflid of law ru les. The parties shall bearthetrownlegalfeesandcostsforallArbitratfonClaims. Theawardofthearbitratorsshall be accompanied by a reasoned opinion, and judgment on the award rendered by thearbitratim panel may be entered fn any court having jurisdidion thereof. Except as may be required by law or to enforce an award, neither a party nor an arbitrator may disclose the existence, content, or results of any arbitration hereunder without the prior written consent of the parties to this agreement.
The parties to thts agreement acknowledge that by agreeing to this arbitration prov'iston, they are giving up the right to litigate claims agatnst each other, and important rights that would be available in litigation, including the right to trial by judge or 5ury, to extensive dtscovery and toappealanadversedecision. Thepartiesacknowledgethattheyhavereadandunderstand this arbitration provision, and that they voluntarily agree to binding arbitration.
13. Conflicts oflnterest. BDO is not aware of any conflicts of interest with respect to any of thenamesClienthasprovided. BDOisnotresponsibleforcontinuouslymonitoringotherpotential conflicts that could arise during the course of the engagement, although we will inform Client promptly should any come to our attention. We reserve the right to resign from this engagement at any time if conflicts of interest arise or become known to us. Additionally, our engagementby Client will in no way preclude us from being engaged by any other party in the future.
Notwithstanding anything contained in confidentiality provisions set forth herein, BDO shall be permitted h:i disclose that it is engaged to provide the Services to Client under this agreementif BDO in its reasonable professional judgment determines that such disclosure is required in connection with BDO's provision of services on behalf of other clients of BDO, including, without limitation, professional services engagements under which BDO personnel act as professionals in legal proceedings that require disclosures, arbitrators in post-acquisition disputes or act as expert witnesses.
14. Power and Authority, Each of the parties hereto has all requisite power and authority to execute and deliver this agreement and to carry out and perform its respective obligations hereunder. This agreementconstitutes the legal, valid and binding obligations of each party, enforceable against such party in accordance with its terms.
15. Subpoenas.lfClientrequestiBDOtoobjecttoorrespondto,orBDOreceivesandresponds to, a validly issued third party subpoena, court order, government regulatory inquiry, or other similar request for, or legal process for the production of, documents and/ or testimony relative to information we obtained and/ or prepared during the course of this or any prior engagements with Client, you agree to compensate us for all time BDO expends in connection with such response, at our standard rates, and to reimburse BDO for all related out-of-pocket costs (including outside attorneys' fees) that we incur.
16. Email Communications. BDO disclaims and waives, and the Client releases BDO from all liability for the interception or unintentional disclosure of e-mail transmissions or for the 6 89
IBDO
unauthorized use or failed delivery of e-mails transmitted or received by BDO in connection with the performance of the Services.
17. External Computing Options. If, at the Client's request, any member of the BDO Groip agrees to use certain external commercial services, including but not limited to services for cloud storage, remote access, third party software and/or file sharing options (collectively " Computing Options"), that are outside of BDO's standard security protocol, the Client acknowledges that such External Computing Options may be associated with heightened security and privacy risks. Accordingly, BDO Group disclaims, and the Client agrees to release BDO Group from, and indemnify BDO Group for, all liability arising outof or related to the use of such External Computing Options.
18. ElectronicTransmissions. This agreement may be transmitted in electronic format and shall not be denied legal effect solely because it was formed or transmitted, in whole or in part, by electronic record; however, this agreementmust then remain capable of being retained and accurately reproduced, from time to time, by electronic record by the parties to this agreement and all other persons or entities required by law. An electronically transmitted signature to this agreementwill be deemed an acceptable original for purposes of consummating this agreement and binding the party providing such electronic signature.
19. Severability. If any portion of this agreement is held to be void, invalid, or otherwise unenforceable in whole or in part, for any reason whatioever, such portion of this agreement shall be amended to the minimum extent required to make the provision enforceable and the remain:
portions of this agreement shall remain in full force and effect.
20. Independent Contractor. BDO is providing the Services to Client as an independent contractor bound by the terms hereof to perform the Services pursuant to the Client's instructions.
BDO'sobligations to Clientare exclusivelycontractuaL in nature. Thisagreementdoes notcreate any agency, employment, partnership, joint venture, trust, or other fiduciary relationship between the parties. Neither BDO nor Client shall have the right to bind the other to any third party or otherwise to act in any way as a representative or agent of the other except as otherwise agreed in writing between the parties.
21. Confidentiality. Each of the parties hereto shall treat and keep all the "Confidential Information" as confidential, with at least the same degree of care as it accords to its own confidential information, but in no event less than a reasonable degree of care. Each party shall disclose the Confidential Information only to its employees, partners, contractors, agents or its legal or other advisors, provided that they have: (i) each been informed of the confidential, proprietary and secret nah.ire of the Confidential Information, or are subject to a binding, preexisting obligation of confidentiality no less stringent than the requirements of this agreement and (ii) a demonstrable need to review such Confidential Information. "Confidential Information" means all non-public information that is marked as "confidential" or "proprietary" or has commercialvalueintheparty'sbusinessandisobtainedbyoneparty(the"Receivin Par ")from the other party (the "Disclosing Party" ). All terms of this agreement are considered Confidential Information. Notwithstanding the foregoing, Confidential Information shall not include any information that was or is: (a) known to the Receiving Party prior to disclosure by the Disclosing Party; (b) as of the time of its disclosure, or thereafter becomes, part of the public domain through a source other than the Receiving Party; (c) made known to the Receiving Party by a third person who is not subject to any confidentiality obligation known to Receiving Party and such third party does not impose any confidentiaLity obligation on the Receiving Party with respect to such 7 3'(
90 IBDO
information; (d) required to be disclosed pursuant to governmental authority, professional obligation, law, decree regulation, subpoena or court order; or (e) independently developed by the Receiving Party. If BDO is providing tax services for the Client, in no case shall the tax treatment or the tax structure of any transaction be treated as confidential as provided in Treas. Reg. sec
1. 6013 -4(b)(3 ). If disclosure is required pursuant to subsection (d) above, the Receiving Party shall (other than in connection with routine supervisory examinations by regulatory authorities with jurisdiction and without breaching any legal or regulatory requirement), to the extent legally permissible, provide prior written notice thereof to allow the Disclosing Party to seek a protective order or other appropriate relief. Upon the request of the Disclosing Party, the Receiving Party shall return or destroy all of the Confidential Information except for: (y) copies retained in work paper files retained to comply with a party's professional or legal obligations; and (z) such Confidential Information retained in accordance with the Receiving Party's normal data back-up procedures.
22. Restrtcted Federal Data. The parties agree that the Services are not intended to involve the processing of Restricted Data, defined as data subject to laws, regulations or government-wtb policies that require safeguarding or dissemination controls, including the Federal Acquisition Regulations ("FAR"), the Defense Federal Acquisition Regulation Supplement ("DFARS"), the International Traffic in Arms Regulation ("ITAR"), the ExportAdministration Regulations ("EAR"), and the Arms Export Control Act ("AECA"). For clarity, and without limiting the foregoir4, controlled unclassified information ("CUI") shall be included in the definition of Restricted Data. ClientshallnotprovideorotherwisemakeavailableRestrictedDatatoBDOunlessexpressly Bgreed to in advance in writing by BDO. If Client becomes aware that any known or suspected Restricted Data will be or has been disclosed to BDO by Client or otherwise in connection with the Services, Client will immediately notify BDO in writing to regulatedg,[email protected] and will cease any further transfer of such data unless and until BDO expressly agrees in writing. CLientwill fully cooperate with BDO in the investigation of and response to any known or suspected Restricted Data that Client has disclosed to BDO notwithstanding the foregoing. Client further agrees that it will be responsible for all fees, costs and expenses associated with processing of Restricted Data, inctuding without limitation additional fees, costs and expenses related to compliance with obligations with respect to such Restricted Data.
23. Intelledual Property. BDO shall retain the right to reuse the ideas, concepts, know-hoh, and techniques derived from the rendering of the Services so long as it does not require the disclosure of any of Client's Confidential Information (as defined above). BDO shall be entitled to all protecUons afforded under State and Federal statutory or common law with respect to any report, computer program (source code and object code) or programming and/or material documentation, manual, chart, specification, formula, database architecture, template, system model, copyright, diagram, description, screen display, schematic, blueprint drawing, tape, license, listing, invention, record, developmentframeworks, code libraries, best practices, general knowledge, skills and experience, or other materials preexisting the execution of this agreement ("BDO Intellectual Property"). Unless otherwise specifically stated in this agreement, the reproduction, distribution or transfer, by any means or methods, whether direct or indirect, of any of BDO's or its agents' Intellectual Property or proprietary information by the Client is strictly prohibited.
24. Licensing Representation. To the extent necessary for BDO to perform its obligations described herein, Client represents and warrants that it will obtain, maintain and comply with all of the licenses, consents, permits, approvals and authorizations that are necessary to allow BDO and its employees, contractors and subcontractors to access and use the services or software 8 91
IBDO
provided for the benefit of Client under Client's third-party services contracti, licenses or other contracti granting Ctientthe right to access, use or receive services or software (each a " Representation"). Upon BDO'srequest, Clientwill provide BDOany referencesavailableevidencing the Licensing Representation (e.g., order number, customer support identifier). Tools subject to this Licensing Representation are hereby deemed External Computing Options (as defined in this Agreement). Client hereby releases BDO Group from all claims and liabilities resulting from (i) BDO's reliance on a Licensing Representation and (ii) the functionality of any third-party software or services used or accessed by BDO.
25. Non-CPA Notice Requirement. BDO is owned by professionals who hold CPA licenses.
Depending on the nature of the Services being provided, from time to time non-CPA personnel may be involved in providing certain Services hereunder.
26. Entire Agreement. This agreementsets forth the entire agreementbetween the parties with respect to the subject matter herein, superseding all prior agreements, negotiations, or understandings, whetheroraL or written, with respectto the subjectmatter herein. Thisagreement may not be changed, modified, orwaived in whole or part except by an instrument in writing signed by both parties.
Please acknowledge your acceptance of the foregoing by signing and returning a copy of this agreement to Brian Alten, CPA, Principal.
lfyouhaveanyquestions, pleasecontactBrianAlten,BDOPRINCIPAL. WeLookforwardtoworki"4 with you.
Very truly yours,
BDO USA
By:
Name: Brian Alten, CPA
Title: Prtncipal
By signing below, the authorized signatory represents that he/she has power and authority and has obtained all approvals, authorizations and consents necessary to enter into this agreement on behalf of the Client set forth below for whom the authorized signatory is executing this agreement. The authorized signatory represents that this agreement constitutes the legal, valid and binding obligation -of the Client set forth below for whom the authorized signatory is executing this agreement and is enforceable against the Client in accordance with its terms and conditions.
Accepted and Agreed to by:
South Gate Housing Authority
B7:
Print Name:
Print Title:
9 3(b
92 IBDO
10 3]
93 Attachment D
Agenda Bill 7/28/26
Amendment No. 1
Contract No. 2022-85-AC
AMENDMENT NO. l TO CONTRACT N0. 2022-85-AC FOR
PROFESSjONAL SERVICES FOR GENERAL ACCOUNTING SERVICES
AND FINANCIAL ASSISTANCE BETWEEN THE CITY OF SOUTH
GATE AND BDO USA, LLP
This Amendment No. 1 to Contract No. 2022-85-AC for Professional Services for General Accounting Serviccs and Financial Assistance ("Amendment No. 1") is made and entered into on July 1, 2023, retroactively, by and between the City of South Gate, a municipal corporation ("City"), and BDO USA, LLP., a California Limited Liability Partnership (':Consultant"). City and Consultant are sometimes hereinafter individually referred to as a "Party" and collectively as "Parties."
RECIT ALS
WHEREAS, on September 27, 2022, the City Manager approved Contract No. 2022-85- AC with Consultant ("Agreement") For Genera] Accounting Services and Financial Assistance in an amount not to exceed Twenty-Five Thousand Dollars ($25,000); and WHEREAS, City and Consultant desire to execute Amendment No. l to extend services identified in Uhe Scope of Work, attached hereto as Exhibit "A" and made a part of this Amendment, for an additional year in an amount not to exceed Twenty-Five thousand dollars ($25,000), under the terms and conditions of the Agreement, bringing the aggregate total of the Agreement and Amendment No. I to Fifty Thousand Dollars ($50,000).
NOW, THEREFOR, the Parties hereby agree as follows:
1. MODIFICATION TO AGREEMENT
1.1 TERM OF AGREEMENT. The term of the Agreement, inc]uding Amendment No. 1, is extended for one (I) year beginning July 1, 2023, through June 30, 2024, unless otherwise expressly extended and agreed to by both Parties in writing, or tertninated by either Party as provided herein.
1.2 COMPENSATION. The amount of compensation paid by City to Consultant for the additional scope of work identified in Exhibit "A" shall not exceed Twenty-Five Thousand Dollars ($25,000).
2. EFFECTIVE DATE. The effective date of this Amendment No. l is retroactive to July 1, 2023 and will remain in effect for one (l ) year through and including June 30, 2024, unless otherwise terminated in accordance with the terms of the Agreement.
3. 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 and in full force and effect. All recitals to this Amendment No. l are Page l of 2
3",)
94 Amendment No. l
Contract No. 2022-85-AC
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. I to be executed and attested by their respective officers thereunto duly authorized.
CITY OF SOUTH GATE:
ger
Dated:
ATTEST:
B)/:
APPROVED AS TO FORM:
BY:
ul F. Salinas, City Attorney
BDO USA, LLP.:
By: % 2k"'
Brian Alten, CPA Partner
Dated: August 16, 2023
95 IBDO
Tel: 2j5-5641900
Fax: 215-564-3940
www.bdo.com
1801 Market Street. Suite 1700
Philadelphia. PA 19103
May 10, 2023
City of South Gate Housing Authority
Attn: Jose Montano
8650 California Avenue
South Gate, CA 90280
Dear Mr. Montano,
Our current contract with the City of South Gate will be expiring on June 30, 2023. This Letter serves as a written request to extend our current Agreement for Professional Services for General Accounting Services and Financial Assistance between the City of South Gate and BDO USA, LLP for another year starting July 1, 2023, to June 30, 2024.
It is mutually agreed that BDO will provide the following general accounting services, financial expertise, and assistance:
* Analyze, prepare, and submit the monthly Voucher Management System (VMS) submission to HUD.
ii Analyze and prepare monthly statements of revenue, expenses, and net position.
Prepare monthly bank reconciliation and reconcile bank statement balance to the general Ledger; Prepare JVs to reconcile.
Prepare monthly calculation and JV posting of earned administrative fees and HAP revenues.
* Analyze and prepare the monthly board report for the Board of Commissioners.
Analyze and prepare calculations for the HAP program reserve balance. * Prepare monthly schedule of units authorized and Leased; Prepare the schedule of annual contributions contracts.
Analyze and prepare the monthly leasing worksheet, * Analyze and update the monthly port-in register and prepare JV.
Analyze and prepare JV to record monthly fraud recovery revenue. * Prepare year-end unaudited and audtted Financial Data Schedule (FDS) and submit to REAC.
Review HUD correspondence and reconcile HUD funding.
Any Service not specifically described herein is outside the scope of this agreement.
BDO's fee for Services will be the firm's hourly rates, as noted below, plus costs for out-of-pocket expenditures. The total annual fees shall not exceed 525,000; and client will only be billed for work effort required.
B[)O US+i. LLI', a Delaware liinited liability paruerihip, Is (he U S member ol BDO International Llmited. a UK company limited by guaran(ee. and forms part oT thii Inkeniatlanal BDO nakwork of Independent member llmis BDO it tlie brand name Toy the BDO netviork and for aach of (hs )It)O IVL'mber Fmns. 96 IBDO
Hourly Rates
Service
Partner/Managing Director
Director
Manager
Senior Associate
Accountant
Hourly Rate
5215
5195-5205
5150-S190
5110-5145
5105
All other matters and terms previously agreed to and set forth in the Professional Services Agreement Contract No. 2022-85-AC shall remain in effect.
Very truly yours,
Brian Alten, CPA
Partner
BDO USA, LLP
2 97
Attachment E
Agenda Bill 7/28/26
Contract No. 2022-85-AC
Agreement forProfessional Services
BDO USA, LLP
AGRF.'FMF,NT FOR PROk&SSlOlNAL SERVI(JS FOR GENE:RAL ACCOUNTmG SERVICES AND FINANCIAL ASSISTANCE BF,TWEEN
THE CITY OF SOUTH GATE AND BDO USA, LLP
This Agreement for Professional Services for General Accounting Services and Financial Assistance ("Agreement") is made and entered into on July 1, 2022, by and between the City of South Gate, a municipal corporation ("City"), and BDO USA, LLP, a Delaware limited liability partnership ("Consultant"). City and Consultant are sometimes hereinafter individually referred to as a "Party" and collectively as "Parties."
RF,CITALS
WHERF,AS, City desires to retain a qualified provider for certain services relating to General Accounting Services and Financial Assistance; and WHERF,AS, Consultant warrants to City that it has the requisite skills, knowledge, qualifications, manpower and expertise to perform properly and timely the professional services under this Agreement; and
WHERF,AS, based on such representation, City desires to contract with Consultant to perform the senrices as described in the Scope of Services attached hereto as Exhibit "A" of this Agreement.
NOW, IHkRji:FuRE, the Parties hereby agree as follows:
1. SCOPE OF SERVICES. City hereby engages Consultant, and Consultant accepts such engagement, to perform the services set forth in the Scope of Services as described in Exhibit "A" attached hereto and made part of this Agreement (the "Services"). The Scope of Services maybemutuallyamendedfromtimetotimebybothPartiesinwriting. Consultant'sServices will not constitute an audit, review, compilation, examination or other form of attest engagement. Consultant shall have no responsibility to address any legal matters or questions of law. After completion of the Services, Consultant will have no responsibility to update its advice, recommendations or work product for changes or modifications to the law and regulations or for subsequent events or tactions, unless City separately engages Consultant in writing to do so,
2. COMPENSATTONFORSF,RVICES. ThetotalamountofcompensationforthisAgreement shall not exceed the sum of Twenty-Five Thousand Dollars ($25,000) as described in Consultant's Exhibit "A." City shall pay Consultant for its professional Semces rendered and reasonable costs incurred pursuant to this Agreement. No additional compensation shall be paid for any other expenses incutred, unless first approved in writing by the Director of Community Development or his/her designee. In die event Consultant's performance of Semces would result in fees in excess of the amount set forth above, Consultant shall notify the City and the Parties shall meet and discuss in good faith an adjustment to such amount, and until such adjustment is agreed to in writing by both Parties, Consultant shall not be required to perform Services pursuant to this Agreement.
5116863.1-L235.0
L%l 98
Agreement forProfessional Services
BDO USA, LLP
2.1 Consultant may be required to attend meetings at City Hall as necessary. Travel time between Consultant's office and City Hall shall not be billable; however, travel costs will be reimbursed at govemment per-diem rates when available.
2.2 Consultant shall submit to City a monthly invoice for Services rendered and shall be paid inaccordance withthe schedule includedinExhibit"A." City shall pay Consultantwithin thirly (30) days of receipt of the invoice. Invoices that are unpaid forty-five (45) days after City's receipt thereof are deemed delinquent and Consultant reserves the right to charge interest on the past due amount at the lesser of 1.O% per month or the maximum amount pemiitted by law. If an account has fees that are not paid in a timely manner, Consultant reserves the right to suspend provision of Services, terminate the licensing arrangements under which City receives a license to use, or suspend City's access to, External Computing Options (as defined below) provided through Consultant, witbhold delivery of any Deliverables (as defined below), or withdraw from this engagement entirely, If any collection action is required, City agrees to reimburse Consultant for all of Consultant's costs of collection, including, without limitation, attorneys' fees.
2.3 No payment made hereunder by City to Consultant, other than the final payment, shall be construed as an acceptance by City of any work or materials, nor as evidence of satisfactory performance by Consultant of its obligations under this Agreement.
3. TF,RM OF AGREEMENT. This Agreement is effective as of July 1, 2022 through June 30, 2023, unless othemise expressly extended and agreed to by both Parties in writing, or terminated by either Party as provided herein.
4. CITY AGENT. The Director of Community Development ("Director"), or her designee, for the purposes of this Agneement, is the agent for City. Whenever approval or authorization is required, Consultant understands that the Director, or his/her designee, has the audiority to provide that approval (IT anthnnzificin
5. CONFLICTOFmTERF,ST. Consultantrepresentsthatitpresentlyhasnointerestandshall not acquire any interest, direct or indirect, in any real property located in the City which may be affected by the Services to be perfomed by Consultant under this Agreement. Consultant further represents that in performance of this Agreement, no person having any such interest shall knowingly be employed by it. Consultant agrees that it will noti$ City of any other conflict of interest that may exist or develop duting the term of this Agreement wrthin ten (10) ' days of discovery thereof.
5.1 Consultant represents that no City employee or official has a material financial interest in Consultant's business. During the term of this Agreement and/or as a result of being awarded this Agreement, Consultant shall not offer, encourage or accept any financial interest in Consultant's business or in this Agreement by any City employee or official.
5.2 Consultant reserves the right to resign from this engagement at any time if conflicts of interest arise or become known to Consultant. Additionally, Consultant's engagement by City will in no way preclude Consultant from being engaged by any other Party in the '!"3
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future. Notwithstanding anything to the contrary contained herein, Consultant shall be permitted to disclose that it is engaged to provide the Services to City under this Agreement if Consultant in its reasonable professional judgment determines that such disclosure is required in connection with Consultant's provision of services on behalf of other clients of Consultant, including, without limitation, professional services engagements under which Consultant personnel act as professionals in legal proceedings thatrequire disclosures, arbitrators inpost-acquisition disputes or act as expert witnesses.
5.3 For Consultant to remain independent, professional standards require Consultant to maintain certain respective roles and relationships with City regarding the Services.
Consultant understands and agrees that Consultant will not perform mhnsBement functions or make management decisions on behalf of City. However, Consultant will provide advice and recommendations to assist management of City in performing its functions and fulfilling its responsibilities. In connection with Consultant's provision of Services, Consultant agrees that Consultant shall perform the following functions: (a) make all management decisions and perform all management fiuictions with respect to the Services perfomied by Consultant; and (b) assign an individual who possesses suitable skill, knowledge and experience to oversee such Senrices and to evaluate the adequacy and results of such Services.
5.4 Because professional and certain regulatory standards require Consultant to be independent, in both fact and appearance, with respect to City in the performance of Consultant's Services, any discussions that City has with personnel of Consultant regarding employment could pose a beat to Consultant's inrlepenrlenre Therefore, Consultant requests City inform Consultant prior to any such discussions so that Consultant can implement appropriate safeguards to maintain Consultant's independence. Such assistance or cooperation by City shall not be construed, and Consultant agrees that it will not claim that any such assistance or cooperation operates to relieve the Consultant from complete, proper and punctual performance of all the Consultant's obligations under this Agreement.
6. GENERAL TERMS AND CONDITIONS.
6.1 Termination for Convemence; Teration for Compliance.
6.1.1 City may terminate this Agreement at any time without cause by giving fifteen (15) days written notice to Consultant of such termination and specifying the effective date thereof. In that event, all finished Deliverables shall, at the option of City and upon City's full and final payment of all fees and expenses due in exchange therefor, become its property, subject to the terms of this Agreement.
If this Agreement is terminated by City as provided herein, Consultant will be paid the total amount of its outstanding fees for Semces rendered as of the terminationdate. hinoeventshallthe amountpayableuponterminationexceed the total maximum compensation provided for in this Agreement.
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reasonably determines that itmust do so to comply with applicable professional standards, applicable laws or regulations (e.g., a conflict of interest arises).
6.2 Termination for Cause.
6.2.1 City may, by written notice to Consultant, terminate the whole or any part of this Agreement in any ofthe following circumstances:
a. If Consultant fails to perform the Services required by this Agreement within the time specified herein or any authorized extension thereof, or b. If Consultant fails to perform the Services called for by this Agreement or so fails to make progress as to endanger performance of t's Agteement in accordance with its terms, and in either of these circumstances does not correct such failure within a period of ten (10) days (or such longer period as Citymay authorizeinwriting) afterreceiptofnotice from City specifying such failure.
6.2.2 hi the event City terminates this Agreement in whole or in part as provided above in Subsection 6.2.1, City may procure, upon such temis and in such manner as it may deem appropriate, services similarto those terminated.
6.2.3 IfthisAgreementisterminatedasprovidedaboveinSubsection6.2.1,Citymay require Consultant to provide all finished documents, data, studies, drawings, maps, photographs, reports, films, charts, sketches, computations, sunreys, models, or other similar documentation prepared by Consultant. Upon such termination, Consultant shall be paid an amount equal to the value of the work perfomied. In ascertaining the value of the work performed up to the date of termination, consideration shall be given to both completed work and work in progress, to complete and incomplete drawings, and to other documents whether delivered to City or in possession of Consultant, and to authorized reimbursement expenses.
6.2.4 If, after notice of termination of die Agreement under the provisions of Subsection 6.2.1 above, it is determined, for any reason, that Consultant was not in default, or that the default was excusable, then the rights and obligations of the Parties shall be the same as if the notice of termination had been issued pursuant to Subsection 6.1. above.
6.3 Non-Assignability. Neither Party shall assign or transfer any interest in this Agreement without the express prior written consent of the other Party.
6.4 Non-Discrimination.
6.4.1 Consultant shall not discate against any employee, subcontractor, or applicant for employment because of race, creed, gender, gender identity (including gender expression), color, religion, ancestty, sexual orientation, '%5
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national origin, disability, age, marital status, family/parental status, or veteran/military status, in the performance of the Services and duties pursuant to this Agreement and will comply with all applicable laws, ordinances and codes of the Federal, State, and County and City governments. Consultant will take affirmative action to ensure that subcontractors and applicants are employed, and thatemployeesaretreatedduringemploymentwithoutregardtotheir race, color, religion, ancestry, sex, national origin, disability, or age. Consultant will take affirmative action to ensure that all employment practices, including those of any subcontractors retained by Consultant to perform Services under this Agreement, are free from such discnation. Such employment practices include, but are not limited to: hiring, upgrading, demotion, transfer, recniitment, recnuitment advertising, layoff, termination, rates of pay or other forms of compensation, and selection for training, including apprenticeshxp
6.4.2 The provisions of Subsection 6.4.2 above shall be included in all solicitations or advertisements placed by or on behalf of Consultant for personnel to perform any ServicesunderthisAgreement. Cityshallhaveaccesstoalldocuments,data,and records of Consultant and its subcontractors for purposes of determig compliance with the equal employment opportunity and non- discnation provisions of this Section, and all applicable provisions of Executive Order No. 11246 (relating to federal restrictions against discatory practices) is available for review and on file with the City Clerk's Office.
6.5 hisurance. Consultant shall submit to City, certificates indicating compliance with the following minimum insurance requirements no less than one (1) day prior to beginning ofperfomiance underdiis Agreement:
6.5.1 Workers' Compensation Insurance as required by law. Consultant shall require all subcontractors similarly to provide such workers' compensation insurance for their respective employees.
6.5.2 Comprehensive general and automobile liability insurance protecting Consultant in amounts not less than $1,000,000 for personal injury to any one person, $1,000,000 for injuries arising out of one occurrence, and $500,000 for property damages or a combined single limit of $1,000,000, with an aggregate of $2,000,000. Each such policy of insurance shall:
a. Be issued by a financially responsible insurance company or companies admitted or authorized to do business in the State of California or which is approved in writing by City.
b. List as additional insured the City, its officers and employees (by blanket endorsement).
c. Specify its acts as p insurance.
d. Contain a clause substantially in the following words: "It is hereby 5116863.1- L235.0
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understood and agreed that this policy shall not be canceled or materially changed except upon thirly (30) days (or ten (10) days in the event such cancellation ormaterial change is the result of nonpayment ofpremium) prior written notice to City of such cancellation or material change." e. Cover the operations of Consultant pursuant to the temis of this Agreement.
6.6 Indemnification; Limitation of Liability.
6.6.1 AstheSer"icesareintendedforCityandarenotintendedfortmdparties,City agrees to indemnify, defend and hold harmless Consultant and/or any of its partners, picipals, and employees for/from and against any and all claims, liabilities, damages or expenses (including attomeys' fees) of any kind relating to the Services or this Agreement, whether arising in contract, statute, tort (including without limitation, negligence) or otherwise (collectively, the "Claims") that are brought by a third party to the extent arising out of any use of, access to, or reliance on the Services or Deliverables by a third party in any manner that is not permitted by this Agreement through the affirmative act of theCity. Cityfurtheragreestorelease,indemnifyandholdhamilessConsultant and/or any of its partners, p*cipals, and employees for/from and against any and all Claims relating to the Services or tis Agreement attributable to any misrepresentations made by City,
6.6.2 Consultant agrees to indemify, defend and hold hamiless City and/or any of its employees and officers for/from any and all claims or actions of any kind asserted by a third party against City arising out of Consultant's (including Consultant's employees, representatives, products and subcontractors) fraud or intentional misconduct, excepting only such claims or actions which may arise out of sole or active negligence of City and/or any other City agency, or any tbird parties not acting on behalf of, at the direction of, or under the control of Consultant.
6.6.3 ExcepttotheextentfinallydeterminedtohaveresultedfmmConsultant'sfraud or intentional misconduct, Consultant's aggregate liability to City for all direct or third-party Claims shall not exceed $250,000.00.
6.6.4 In no event shall Consultant be liable for consequential, special, indirect, incidental, punitive, or exemplary losses or damages, loss of profits or losses resulting from loss of data, business or goodwill relating to the Agteement, regardless of whether Consultant has been advised of the possibility of such damages.
6.7 ('ompliancpwithApplicableLaw. ConsultantandCityshallcomplywithallapplicable statutory laws, ordinances, and codes of the Federal, State, County and City govemments that are directly applicable to each Party's performance under this Agreement, without regard to conflict of law p*ciples.
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6.8 Tmlpppndent Contractor. This Agreement is by and between City and Consultant and is not intended, nor shall it be constnued, to create the relationship of agency, servant, employee, partnership, joint venture, or association, as between City and Consultant. All Services and Deliverables provided by Consultant to City under this Agreement shall be solely for the use and benefit of City pursuant to the client-service provider relationship between City mid Consultant. This engagement does not create privity between Consultant and any person or party other than City and Consultant, and is not intended for the express or implied benefit of any third party. No third party is entitled to rely, in any manner or for any purpose, on the Services or Deliverables provided by Consultant to City under this Agreement.
6.8.1 Consultant shall be an independent contractor and shall have no power to incur anydebtorobligationfororonbehalfofCity. NeitherCitynoranyofitsofficers or employees shall have any control over the conduct of Consultant, or any. of Consultant's employees, except as herein set forth, and Consultant expressly warrants not to, at any time orin any manner, represent that it, or any of its agents, servants or employees are in any manner employees of City, it being distinctly understood that Consultant is and shall at all times remain to City a wholly independent contractor and Consultant's obligations to City are solely such as are prescribed by this Agreement.
6.8.2 Indemnification of CalPERS Determination - In the event that Consultant or any employee, agent, or subcontractor of Consultant providing Services under this Agreement claims or is determined by a court of competent jurisdiction or CalPERS to be eligible for enrollment in CalPERS as an employee of City, Consultant shall indemnif5r, defend, and hold harmless City for the payment of any employee and/or employer contributions for CalPERS benefits on behalf of Consultant or its employees, agents, or subcontractors, as well as, forthe payment of any penalties and interest on such contributions which would otherwise be the responsibility of City.
6.8.3 Business License Required. According to Title 2.08.40 of the South Gate Municipal Code, a business license will be required priorto doing business within theCity,evenifthebusinessislocatedoutsideoftheCity. Verificationofavalid South Gate business license will be required prior to start of work and any fees associated with the acquisition or maintenance of such business license shall be the sole responsibility of Consultant.
6.9 Consultant's Personnel.
6.9.1 All Services required under the Agreement will be performed by Consultant, or under Consultant's direct supervision, and all personnel shall possess the qualifications, permits and licenses required by State and local law to perfom such Services, including, without limitation, a City of South Gate business license as required by the South Gate Municipal Code.
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6.9.2 Consultant shall be solely responsible for the satisfactory work performance of all personnel engaged in performing Services required by this Agreement, and compliance with all reasonable perfomance standards established by City to the extent that such standards are provided to the Consultant in writing prior to it or its personnel becoming bound to such standards.
6.9.3 Consultantshallberesponsibleforpaymentofallemployees'andsubcontractors' wages and benefits and shall comply with all requirements pertaining to employer's liability, workers' compensation, unemployment insurance and Social Security.
6.9.4 Consultant shall indemnify and hold harmless City and all other related entities, officers, employees and representatives from any liability, damages, claims, costs, and expenses of any nature arising from alleged violations of personnel practices.
6.10 Copyright; Ownership.
6.10.1 No reports, maps or other documents produced in whole or in part under this Agreement shall be the subject of an application for copyright by or on behalf of Consultant.
6.10.2 In connection with the peformance of the Services, Consultant will prepare documents that support Consultant's work and include items such as work programs and analyses that do not constitute part of City's records ("Working Papers"). The Working Papers prepared pursuant to this Agreement are the property of Consultant, constitute confidential, proprietary, and trade secret infomiation of Consultant, and will be retained by Consultant in accordance with Consultant's policies and procedures and all applicable laws.
6.10.3 All right, title and interest in and to any work product prepared in connection with Consultant's provision of the Services to City and identified as a "deliverable" in Exhibit "A" (the "Deliverables") shall, upon City's full and final payment therefor, be assigned to City and shall become the property of City, subject to the terms of this Agreement. Notwithstanding anything to the contrary contained herein, the Deliverables shall not include the Working Papers.
6.10.4 The Parties agree that the Consultant has created, acquired, owns or otherwise has rights in, and may, in comiection with the provision of the Services or Deliverables, use, provide, modify, create, acquire or otherwise obtain rights in, methods, methodologies, procedures, processes, know-how, techniques, models, templates, and tools that are not explicitly desibed as Deliverables, including any materials developed before the effective date of this Agreement, provided by the Consultant or its suppliers or licensors, which shall be the sole and exclusive property of the Consultant or such suppliers or licensors, as appropriate, and all rights related thereto, including, without limitation, 5116863.1 -L235.0
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copyrights, trademarks, trade secrets, patents, and other intellectual property or proprietary rights, are hereby exclusively reserved by the Consultant or its applicable owner. Unless otherwise specifically stated in this Agreement, the repmduction, distribution or transfer, by any means ormethods, whether direct orindirect, of any ofthe materials described above by City is strictly prohibited.
6.10.5 Consultant shall retain the right to reuse the ideas, concepts, know-how, and techniques derived from the rendering of the Services so long as it does not require the disclosure of any of City's confidential information.
6.11 Legal Construction.
6.11.1 This Agreement is made and entered into in the State of California and shall in all respects be interpreted, enforced, and governed under the laws of the State of Californiawithoutregardtoconflictoflawprinciples. ThePartiesherebyconsent firstto the exclusive jurisdictionofthe United States DistrictCourtforthe Central District of Califomia when any dispute, controversy, or claim arising out of, relating to, or resulting from the Services, the Deliverables and/or the performance or breach of this Agreement, excluding claims for non-monetary or equitable relief (collectively, the "Dispute") satisfies the jurisdictional requirements necessary for that court to exercise jurisdiction. When the Dispute does not satisfy the jurisdictional requirements for the Dispute to be filed in the United States District Court for the Central District of California, each Party hereby consents to the exclusive jurisdiction of the courts of the State of California, sitting in Los Angeles County. EACH PARTY HERETO
IRREVOCABLY WAIVES, TO THE FULL EXTENT PERMITTED BY LAW,
ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATmG TO THIS
AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED
HEREBY OR THEREBY.
6.11.2 This Agreement shall be constnied without regard to the identity of the persons who drafted its various provisions. Each and every provision of ttffs Agreement shall be constnuedas though eachofthe Partiesparticipatedequally inthe drafting of same, and any rule of constnuction that a document is to be constnued against the drafting Parly shall not be applicable to this Agreement.
6.11.3. The article and section, captions and headings herein have been inserted for conveience only and shall not be considered or referred to in resolving questions of interpretation or conshuction.
6.11.4. Whenever in this Agreement the context may so require, the masculine gender shall be deemed to refer to and include the feminine and neuter, and the singular shall refer to and include the plural.
6.12 Counterparts; Electronic Transmission. This Agreement may be executed in counterparts and, as so executed, shall constitute an agreement which shall be binding -')O
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upon all Parties hereto. This Agreement may be transmitted in electronic fomiat and shall not be denied legal effect solely because it was fomied or transmitted, in whole or in part, by electronic record; however, tbis Agreement mustthen remain capable of being retained and accurately reproduced, from time to time, by electronic record bythe Parties to this Agreement and all other persons or entities required by law. An electronically transmitted signature to this Agreement will be deemed an acceptable original for purposes of consummating this Agreement and binding the Party providing such electronic signature.
6.13 Final Payment Acceptance. No later than sixty (60) days following the completion of the Services, Consultant shall submit its final invoice for fees and expenses for the Services performed hereunder to the City in accordance with Section 2.2. Consultant's acceptance of City's payment of such final invoice (i.e., by negotiation of City's check) or the failure by Consultant to make a written extra compensation claim within ten (10) calendar days of the receipt of City's check constituting City's payment of such final invoice shall constitute Consultant's waiver of additional fees or expenses, after which Consultant may not request further payment of fees or expenses from City. None of the foregoing shall be constnied as Consultant's release or waiver of, and Consultant hereby reserves, any and all claims it may have against City other than for the payment of fees and expenses, including, without limitation, claims relating to City's breach of this Agreement.
6.14 Corrections. In addition to the above indemnificahon obligations, Consultant shall correct, at its expense, all errors in the workwhich may be disclosedduring City's review of Consultant's report or plans. Should Consultant fail to make such correction in a reasonably, timely manner, such correction shall be made by City, and the cost thereof shall be charged to Consultant.
6.15 Files. Except for the Working Papers, all files of Consultant pertaining to City shall be and remain the properly of City. Consultant will control the physical location of such files during the term of this Agreement and shall be entitled to retain copies of such files upon termination of this Agreement.
6.16 Waiver; Remedies Cumulative. Failure by a Party to insist upon the performance of any of the provisions of this Agreement by the other Party, irrespective of the length of time for which such failure continues, shall not constitute a waiver of such Party's right to demand compliance by such other Party in the future. No waiverby a Party of a default or breach of the other Party shall be effective or binding upon such a Party unless made in writing by such Party, and no such waiver shall be implied from any omissions by a Party to take any action with respect to such default or breach. No express written waiver of a specified default or breach shall affect any other default or breach, orcover any other period of time, other than any default or breach and/or period of time specified. All of the remedies permitted or available to a Party under this A@eement, or at law or in equity, shall be ciunulative and alternative, and invocation of any such right or remedy shall not constitute a waiver or election of remedies with respect to any other permitted or available right of remedy.
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