Vernon City Council
March 3, 2026

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Item 8 Page 5 of 130
Item Number Description Quantity Cost per Unit Monthly Cost ECS-VLAN Private VLAN 2 USD 0.00000 USD 0.00
NTWK-IP-CIDR-28 Public IPv4 Address - /28 CIDR - 16 IPv4 Addresses (Usable IPs dependent upon on use case and
configuration)
1 USD 89.60000 USD 89.60
TOTAL USD 89.60
Setup
Item Number Description Quantity Cost per Unit Monthly Cost PS-SETUP-FEE Standard Set up fee for all applicable SKUs 1 USD 0.00000 USD 0.00 TOTAL USD 0.00
Total Monthly Recurring Charges: USD 4,200.85
Total Non-Recurring Charges: USD 0.00

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Item 8 Page 6 of 130
Terms & Conditions
This Work Order (this "Order") is entered into on the date set out above by and between the Provider identified above and the Customer as identified below.

This Order is subject to the terms, conditions, and agreements negotiated between the Customer and the Provider. By signing this Order, by consenting to the terms of an Order in writing or by utilizing the services provided to it by the Provider, the Customer agrees to be bound by the terms of the Agreement and this Order. The Provider shall provide the resources described above in each case to the Customer, and the Customer shall compensate the Provider at the rates set out above, in each case subject to the terms and conditions set out in the Agreement until this Order is terminated in accordance with the Agreement. If the Customer is migrating services from one environment to another environment as part of this work order, billing will begin on the new environment once the Provider confirms the Cloud Resources have been handed off to the Customer.

Billing will end on the old environment once the Provider confirms the Cloud Resources have been handed off. The Customer will have a 30 day window to ensure all resources are fully migrated and removed without charge. After 30 days if the resources within the old environment remain active, billing for those resources will recommence outside other stipulations highlighted within this work order. By signing this Order the undersigned agrees that it has the authority to bind the Customer to the terms and conditions set out in this Order and the Agreement and that the Customer agrees to be bound by such terms.

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Item 8 Page 7 of 130
CUSTOMER: City of Vernon
4305 Santa Fe Ave
Vernon California
90058-1714
USA
Customer Reference ID:
(Customer's Internal Tracking)
\customerid1\
Customer PO#:

Promo Code:

Name (Print): \n1\
Title: \contactjobtitle1\
Signature: \s1\
Date Signed: \d1\
11:11 Systems Inc. is the Provider under this Work Order and assumed responsibility for providing the Services under the Agreement with the Customer following its acquisition of iland Internet Solutions Corporation on January 20, 2022.

THANK YOU FOR YOUR BUSINESS!

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Item 8 Page 8 of 130
City Council Agenda Report
Meeting Date: March 3, 2026
From: Daniel S. Wall, P.E., Director of Public Works-City Engineer Department: Public Works
Submitted by: Carlos Velazquez, Assistant Engineer
Subject
Services Agreement with H.W. Lochner, Inc. for City of Vernon Vision Zero Action Plan Recommendation
A. Find that the proposed action is exempt under the California Environmental Quality Act (“CEQA”) in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have a significant effect on the environment; and B. Enter into a services agreement with H.W. Lochner Inc., in substantially the same form as submitted, to perform a feasibility study and develop the City of Vernon Vision Zero Action Plan, for a total amount not-to-exceed $163,382.20.

Background
In late 2022, the Los Angeles County Metropolitan Transportation Authority (LACMTA), in coordination with multiple municipalities, submitted a joint application for the federal Safe Streets and Roads for All (SS4A) Grant Program. The SS4A program provides funding for regional and local initiatives through two categories: Planning and Demonstration Grants and Implementation Grants. These grants are intended to prevent and eliminate roadway fatalities and serious injuries.

LACMTA applied for a Planning and Demonstration Grant on behalf of participating municipalities to support the development of Vision Zero Action Plans. A Vision Zero Action Plan establishes a Safe System approach to comprehensively analyze citywide transportation infrastructure and make engineering recommendations to improve safety and accessibility for all users. The development of the Vision Zero Action Plan will provide a comprehensive framework to improve traffic safety and reduce roadway-related fatalities and serious injuries within the City.

LACMTA was awarded a total of $6,320,257 for distribution among participating municipalities that formally agreed to partner with the agency, including the City of Vernon. Under the funding agreement between LACMTA and the City, the Safe Streets and Roads for All (SS4A) grant will fund 80 percent of the cost to develop the City’s Vision Zero Action Plan, with the City providing the remaining 20 percent local match. LACMTA has allocated $204,120 to the City of Vernon, requiring a City contribution of $51,030, for a total project value not to exceed $255,150.

In accordance with Vernon Municipal Code (VMC) Section 3.32.080, the Public Works Department issued a Request for Proposals (RFP) to select a firm that could provide the desired services. The RFP for City of Vernon Vision Zero Action Plan was issued on September 16, 2025, via the PlanetBids online portal with responses due by October 23, 2025. A total of six firms submitted a proposal in response to the RFP by the specified deadline. After reviewing the proposal and conducting reference checks, it was determined that H.W. Lochner, Inc. best meets the Department's needs based on its responsiveness to the RFP, professional qualifications, and experience.
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Item 9 Page 1 of 201
Pursuant to VMC Section 3.32.030 (A), all contracts over $100,000 require City Council approval. The proposed Services Agreement with H.W. Lochner, Inc., is not-to-exceed $163,382.20. Therefore, it is recommended that City Council approve and authorize the City Administrator to execute a services agreement with H.W. Lochner, Inc.

The proposed services agreement has been reviewed and approved as to form by the City Attorney’s Office.

Fiscal Impact
The fiscal impact is not-to-exceed $163,382.20 for the term of the Services Agreement. The grant funds will cover 80% of the costs of the services agreement. This will result in $130,705.76 in additional revenue to the General Fund, Public Works Department, Street Maintenance, Grant Revenues, Account No. 011-595-430-440100. Sufficient funds are available in General Fund, Public Works Department, Street Maintenance, Grants-Capital Outlay - Account No. 011-595- 430-660000 for the 80% grant funded portion. However, approval of this action would require additional appropriation of $32,676.44 in the General Fund, Public Works Department, Street Maintenance, Capital Outlay - Account No. 011-040-430-660000 for the City’s 20% match, for the current fiscal year.

Attachments

1. Services Agreement with H.W. Lochner, Inc.
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Item 9 Page 2 of 201
SERVICES AGREEMENT BETWEEN THE CITY OF VERNON AND H. W. LOCHNER, INC. FOR CITY OF VERNON VISION ZERO ACTION PLAN

COVER PAGE
Contractor: H. W. Lochner, Inc.

Responsible Principal of Contractor: Carlos Velasquez, Project Manager Notice Information - Contractor: Carlos Velasquez,
110 Corporate Center Drive, Suite 201
Monterey Park, CA 91754
Attention: Carlos Velasquez, Project
Manager
Telephone: (323) 859 - 3135
Notice Information - City: City of Vernon
4305 Santa Fe Avenue
Vernon, CA 90058
Attention: Daniel S. Wall - Director of
Public Works
Telephone: (323) 583-8811 ext. 305
Commencement Date: March 05, 2026
Termination Date: December 31, 2026
Consideration: Total not to exceed $163,382.20
(includes all applicable sales tax); and
more particularly described in Exhibit B
Records Retention Period Three (3) years, pursuant to Section

11.20 Docusign Envelope ID: 14CA9238-CA4E-4144-83EB-7E3EDC9EDF73 .
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Item 9 Page 3 of 201
H.W. Lochner, Inc.

Services Agreement

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SERVICES AGREEMENT BETWEEN THE CITY OF VERNON AND H. W. LOCHNER, INC. FOR CITY OF VERNON VISION ZERO ACTION PLAN
This Agreement is made between the City of Vernon, a California charter City and California municipal corporation (“City”), and H.W. Lochner, Inc., a Wisconsin corporation (“Contractor”).

The City and Contractor agree as follows:

1.0 EMPLOYMENT OF CONTRACTOR. City agrees to engage Contractor to perform the services as hereinafter set forth as authorized by the City Council on March 3, 2026.

2.0 SCOPE OF SERVICES.

2.1 Contractor shall perform all work necessary to complete the services set forth in the City’s Request for Proposals issued on or about August 11, 2025, and titled RFP for City of Vernon Vision Zeron Action Plan, and Contractor's proposal to the City ("Proposal") dated October 23, 2025, Exhibit “A”, a copy which is attached to and incorporated into this Agreement by reference.

2.2 All services shall be performed to the satisfaction of City.

2.3 All services shall be performed in a competent, professional, and satisfactory manner in accordance with the prevailing industry standards for such services.

3.0 PERSONNEL.

3.1 Contractor represents that it employs, or will employ, at its own expense, all personnel required to perform the services under this Agreement.

3.2 Contractor shall not subcontract any services to be performed by it under this Agreement without prior written approval of City.

3.3 All of the services required hereunder will be performed by Contractor or by City approved subcontractors. Contractor, and all personnel engaged in the work, shall be fully qualified and authorized or permitted under State and local law to perform such services and shall be subject to approval by the City.

Docusign Envelope ID: 14CA9238-CA4E-4144-83EB-7E3EDC9EDF73 .
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Services Agreement

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4.0 TERM. The Contractor shall commence the delivery of services on receipt of a written notice to proceed and shall complete the services on the schedule set forth in Exhibit “B”.

5.0 COMPENSATION AND FEES.

5.1 Contractor has established rates for the City of Vernon which are comparable to and do not exceed the best rates offered to other governmental entities in and around Los Angeles County for the same services. For satisfactory and timely performance of the services, the City will pay Contractor in accordance with the payment schedule set forth in Exhibit “B” attached hereto and incorporated herein by reference.

5.2 Contractor's grand total compensation for the entire term of this Agreement, shall not exceed $163,382.20 without the prior authorization of the City, as appropriate, and written amendment of this Agreement.

5.3 Contractor shall, at its sole cost and expense, furnish all necessary and incidental labor, material, supplies, facilities, equipment, and transportation which may be required for furnishing services pursuant to this Agreement. Materials shall be of the highest quality. The above Agreement fee shall include all staff time and all clerical, administrative, overhead, insurance, reproduction, telephone, air travel, auto rental, subsistence, and all related costs and expenses.

5.4 City shall reimburse Contractor only for those costs or expenses specifically approved in this Agreement, or specifically approved in writing in advance by City. Unless otherwise approved, such costs shall be limited and include nothing more than the following costs incurred by Contractor:

5.4.1 The actual costs of subcontractors for performance of any of the services that Contractor agrees to render pursuant to this Agreement, which have been approved in advance by City and awarded in accordance with this Agreement.

5.4.2 Approved reproduction charges.

5.4.3 Actual costs and/or other costs and/or payments specifically authorized in advance in writing and incurred by Contractor in the performance of this Agreement.

Docusign Envelope ID: 14CA9238-CA4E-4144-83EB-7E3EDC9EDF73 .
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Item 9 Page 5 of 201
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5.5 Contractor shall not receive any compensation for extra work performed without the prior written authorization of City. As used herein, “extra work” means any work that is determined by City to be necessary for the proper completion of the Project, but which is not included within the Scope of Services and which the parties did not reasonably anticipate would be necessary at the time of execution of this Agreement. Compensation for any authorized extra work shall be paid in accordance with the payment schedule as set forth in Exhibit “B,” if the extra work has been approved by the City.

5.6 Licenses, Permits, Fees, and Assessments. Contractor shall obtain, at Contractor’s sole cost and expense, such licenses, permits, and approvals as may be required by law for the performance of the services required by this Agreement.

Contractor shall have the sole obligation to pay for any fees, assessments, and taxes, plus applicable penalties and interest, which may be imposed by law and which arise from or are necessary for the performance of the Services by this Agreement.

6.0 PAYMENT.

6.1 As scheduled services are completed, Contractor shall submit to the City an invoice for the services completed, authorized expenses, and authorized extra work actually performed or incurred according to said schedule.

6.2 Each such invoice shall state the basis for the amount invoiced, including a detailed description of the services completed, the number of hours spent, reimbursable expenses incurred and any extra work performed.

6.3 Contractor shall also submit a progress report with each invoice that describes in reasonable detail the services and the extra work, if any, performed in the immediately preceding calendar month.

6.4 Contractor understands and agrees that invoices which lack sufficient detail to measure performance will be returned and not processed for payment.

6.5 City will pay Contractor the amount invoiced within thirty (30) days after the City approves the invoice.

6.6 Payment of such invoices shall be payment in full for all services, Docusign Envelope ID: 14CA9238-CA4E-4144-83EB-7E3EDC9EDF73 .
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Item 9 Page 6 of 201
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authorized costs, and authorized extra work covered by that invoice.

7.0 CITY'S RESPONSIBILITY. City shall cooperate with Contractor as may be reasonably necessary for Contractor to perform its services; and will give any required decisions as promptly as practicable so as to avoid unreasonable delay in the progress of Contractor's services.

8.0 COORDINATION OF SERVICES. Contractor agrees to work closely with City staff in the performance of Services and shall be available to City’s staff, consultants, and other staff at all reasonable times.

9.0 INDEMNITY. Contractor agrees to indemnify City, its officers, elected officials, employees and agents against, and will hold and save each of them harmless from, any and all actions, suits, claims, damages to persons or property, losses, costs, penalties, obligations, errors, omissions or liabilities (herein “claims or liabilities”), including but not limited to professional negligence, that may be asserted or claimed by any person, firm or entity arising out of or in connection with the work, operations or activities of Contractor, its agents, employees, subcontractors, or invitees, provided for herein, or arising from the acts or omissions of Contractor hereunder, or arising from Contractor’s performance of or failure to perform any term, provision, covenant or condition of this Agreement, except to the extent such claims or liabilities arise from the gross negligence or willful misconduct of City, its officers, elected officials, agents or employees.

10.0 INSURANCE. Contractor shall procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damage to property that may arise from or in connection with the performance of the work hereunder by the Contractor, its agents, representatives, or employees. The policies shall state that they afford primary coverage.

10.1 Automobile Liability Insurance – Primary insurance coverage shall be written on ISO Business Auto coverage form for all owned, hired, and non-owned automobiles or any auto. The policy shall have a combined single limit of not less than one million dollars ($1,000,000). If Contractor is transporting one or more nonemployee passengers in the performance of the services, the automobile liability policy Docusign Envelope ID: 14CA9238-CA4E-4144-83EB-7E3EDC9EDF73 .
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Item 9 Page 7 of 201
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shall have a combined single limit of two million dollars ($2,000,000). If Contractor owns no autos, a hired, non-owned auto endorsement to the General Liability policy is acceptable.

10.1.1 Contractor agrees to subrogate automobile liability resulting from performance under this agreement by agreeing to defend, indemnify, and hold harmless, the City, and its respective employees, agents, and City Council from and against all claims, liabilities, suits, losses, damages, injuries and expenses, including all costs and reasonable attorney’s fees (“Claims”), which are attributable to any act or omission by the Contractor under the performance of the services. The City of Vernon, its directors, commissioners, officers, employees, agents, and volunteers must be endorsed on the policy as additional insureds and, under the Contractors’ policy, there shall be a waiver of subrogation, and the policy shall be primary and non-contributory and will not seek contribution from the City’s insurance.

10.2 Commercial General Liability Insurance – Contractor shall carry General Liability Insurance covering all operations performed by or on behalf of the Contractor providing coverage for bodily injury and property damage with a single limit of not less than one million dollars ($1,000,000) per occurrence and two million dollars ($2,000,000) general aggregate limit written on an Insurance Services Office (ISO) Comprehensive General Liability "occurrence" Form CG 00 01 or its equivalent for coverage on an occurrence basis. The City of Vernon, its directors, commissioners, officers, employees, agents, and volunteers must be endorsed on the policy as additional insureds with respect to liability arising out of the Contractor's performance of this Agreement. The additional insured coverage under the Contractor’s policy shall be primary and non-contributory and will not seek contribution from the City’s insurance.

The policy shall be endorsed to include a waiver of subrogation.

10.2.1 If Contractor intends to employ other contractors as part of the services rendered, the City must approve and will establish the Docusign Envelope ID: 14CA9238-CA4E-4144-83EB-7E3EDC9EDF73 .
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appropriate insurance requirements.

10.2.2 Contractor agrees to subrogate General Liability resulting from performance under this agreement by agreeing to defend, indemnify, and hold harmless, the City, and its respective employees, agents, and City Council from and against all claims, liabilities, suits, losses, damages, injuries and expenses, including all costs and reasonable attorney’s fees (“Claims”), which are attributable to any act or omission by the Contractor under the performance of the services.

10.3 Professional Errors and Omissions Coverage in a sum of not less than one million dollars ($1,000,000), where such risk is applicable. Applicable aggregate must be identified and claims history provided to determine amounts remaining under the aggregates. Contractor shall maintain such coverage for at least one (1) year after the termination of this agreement.

10.4 Umbrella Liability Insurance – An umbrella (over primary) may be used to comply with limits or other primary coverage requirements. When used, the umbrella policy shall apply to bodily injury/property damage and personal injury/advertising injury and shall include a “dropdown” provision providing primary coverage for any liability not covered by the primary policy. The umbrella policy shall have no additional exclusion or coverage difference from the primary policy. The coverage shall also apply to automobile liability.

10.5 Workers’ Compensation/Employers Liability - Contractor shall comply with the applicable sections of the California Labor Code concerning workers' compensation for injuries on the job. Compliance is accomplished in one of the following manners:

10.5.1 Provide a copy of the permissive self-insurance certificate approved by the State of California; or

10.5.2 Secure and maintain in force a policy of workers' compensation insurance with statutory limits and Employer's Liability Insurance with a limit of one million dollars ($1,000,000) per accident. The policy shall be endorsed to waive all rights of subrogation against Docusign Envelope ID: 14CA9238-CA4E-4144-83EB-7E3EDC9EDF73 .
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City, its directors, commissioners, officers, employees, and volunteers for losses arising from performance of this Agreement or

10.5.3 If Contractor has no employees, it may certify or warrant to the City that it does not currently have any employees or individuals who are defined as “employees” under the Labor Code, and the requirement for Workers’ Compensation coverage will be waived by completing the waiver form provided by the City.

10.6 If Contractor maintains broader coverage and/or higher limits than the minimums shown above, City requires and shall be entitled to the broader coverage and/or the higher limits maintained by the Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.

10.7 Each insurance policy included in this clause shall be endorsed to state that coverage shall not be cancelled except after thirty (30) days prior written notice to City.

10.8 Insurance shall be placed with insurers with an A.M. Best rating of no less than A-VIII. Any self-insured retention or deductible in excess of $25,000 must be approved in advance by the City. Any policies written on a claims-based basis must include a minimum of a 3-year tail.

10.9 Prior to the commencement of performance, Contractor shall furnish City with a certificate of insurance for each policy. Each certificate is to be signed by a person authorized by that insurer to evidence coverage on its behalf. The certificate(s) must be in a form approved by City. City may require complete, certified copies of any or all policies upon request.

10.10 Failure to maintain required insurance at all times shall constitute a default and material breach. In such event, Contractor shall immediately notify City and cease all performance under this Agreement until further directed by the City. In the absence of satisfactory insurance coverage, City may, at its option: (a) procure insurance with collection rights for premiums, attorney's fees, and costs against Contractor by way of set-off or recoupment from sums due to Contractor, at City's option; (b) immediately Docusign Envelope ID: 14CA9238-CA4E-4144-83EB-7E3EDC9EDF73 .
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terminate this Agreement and seek damages from the Agreement resulting from said breach; or (c) self-insure the risk, with all damages and costs incurred, by judgment, settlement or otherwise, including attorney's fees and costs, being collectible from Contractor, by way of set-off or recoupment from any sums due to Contractor.

11.0 GENERAL TERMS AND CONDITIONS.

11.1 INDEPENDENT CONTRACTOR.

11.1.1 It is understood that in the performance of the services herein provided for, Contractor shall be, and is, an independent contractor, and is not an agent, officer or employee of City and shall furnish such services in its own manner and method except as required by this Agreement, or any applicable statute, rule, or regulation. Further, Contractor has and shall retain the right to exercise full control over the employment, direction, compensation and discharge of all persons employed by Contractor in the performance of the services hereunder. City assumes no liability for Contractor’s actions and performance, nor assumes responsibility for taxes, bonds, payments, or other commitments, implied or explicit, by or for Contractor. Contractor shall be solely responsible for, and shall indemnify, defend and save City harmless from all matters relating to the payment of its employees, subcontractors and independent contractors, including compliance with social security, withholding and all other wages, salaries, benefits, taxes, exactions, and regulations of any nature whatsoever.

11.1.2 Contractor acknowledges that Contractor and any
subcontractors, agents or employees employed by Contractor shall not, under any circumstances, be considered employees of the City, and that they shall not be entitled to any of the benefits or rights afforded employees of City, including, but not limited to, sick leave, vacation leave, holiday pay, Public Employees Retirement System benefits, or health, life, dental, long-term disability or workers' compensation insurance benefits.

11.2 CONTRACTOR NOT AGENT. Except as the City may authorize in writing, Contractor and its subcontractors shall have no authority, express or implied, to act on behalf of or bind the City in any capacity whatsoever as agents or otherwise.

11.3 OWNERSHIP OF WORK. All documents and materials furnished by the City to Contractor shall remain the property of the City and shall be returned to Docusign Envelope ID: 14CA9238-CA4E-4144-83EB-7E3EDC9EDF73 .
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Item 9 Page 11 of 201
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the City upon termination of this Agreement. All reports, drawings, plans, specifications, computer tapes, floppy disks and printouts, studies, memoranda, computation sheets, and other documents prepared by Contractor in furtherance of the work shall be the sole property of City and shall be delivered to City whenever requested at no additional cost to the City. Contractor shall keep such documents and materials on file and available for audit by the City for at least three (3) years after completion or earlier termination of this Agreement. Contractor may make duplicate copies of such materials and documents for its own files or for such other purposes as may be authorized in writing by the City.

11.4 CORRECTION OF WORK. Contractor shall promptly correct any defective, inaccurate or incomplete tasks, deliverables, goods, services and other work, without additional cost to the City. The performance or acceptance of services furnished by Contractor shall not relieve the Contractor from the obligation to correct subsequently discovered defects, inaccuracy, or incompleteness.

11.5 RESPONSIBILITY FOR ERRORS. Contractor shall be responsible for its work and results under this Agreement. Contractor, when requested, shall furnish clarification and/or explanation as may be required by the City, regarding any services rendered under this Agreement at no additional cost to City. In the event that an error or omission attributable to Contractor occurs, then Contractor shall, at no cost to City, provide all necessary design drawings, estimates and other Contractor professional services necessary to rectify and correct the matter to the sole satisfaction of City and to participate in any meeting required with regard to the correction.

11.6 WAIVER. The City's waiver of any term, condition, breach, or default of this Agreement shall not be considered to be a waiver of any other term, condition, default or breach, nor of a subsequent breach of the one waived. The delay or failure of either party at any time to require performance or compliance by the other of any of its obligations or agreements shall in no way be deemed a waiver of those rights to require such performance or compliance. No waiver of any provision of this Agreement shall be effective unless in writing and executed by a duly authorized representative of the party against whom enforcement of a waiver is sought.

Docusign Envelope ID: 14CA9238-CA4E-4144-83EB-7E3EDC9EDF73 .
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11.7 SUCCESSORS. This Agreement shall inure to the benefit of, and shall be binding upon, the parties hereto and their respective heirs, successors, and/or assigns.

11.8 NO ASSIGNMENT. Contractor shall not assign or transfer this Agreement or any rights hereunder without the prior written consent of the City and approval by the City Attorney, which may be withheld in the City's sole discretion. Any unauthorized assignment or transfer shall be null and void and shall constitute a material breach by the Contractor of its obligations under this Agreement. No assignment shall release the original parties from their obligations or otherwise constitute a novation.

11.9 COMPLIANCE WITH LAWS. Contractor shall comply with all Federal, State, County and City laws, ordinances, rules and regulations, which are, as amended from time to time, incorporated herein and applicable to the performance hereof. Violation of any law material to performance of this Agreement shall entitle the City to terminate the Agreement and otherwise pursue its remedies. Further, if the Contractor performs any work knowing it to be contrary to such laws, rules, and regulations Contractor shall be solely responsible for all costs arising therefrom.

11.10 ATTORNEY'S FEES. If any action at law or in equity is brought to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorney's fees, costs, and necessary disbursements in addition to any other relief to which such party may be entitled.

11.11 INTERPRETATION.

11.11.1 Applicable Law. This Agreement shall be deemed an agreement and shall be governed by and construed in accordance with the laws of the State of California. Contractor agrees that the State and Federal courts which sit in the State of California shall have exclusive jurisdiction over all controversies and disputes arising hereunder, and submits to the jurisdiction thereof.

11.11.2 Entire Agreement. This Agreement, including any exhibits attached hereto, constitutes the entire agreement and understanding between the parties regarding its subject matter and supersedes all prior or contemporaneous Docusign Envelope ID: 14CA9238-CA4E-4144-83EB-7E3EDC9EDF73 .
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negotiations, representations, understandings, correspondence, documentation, and agreements (written or oral).

11.11.3 Written Amendment. This Agreement may only be
changed by written amendment executed by Contractor and the City Administrator or other authorized representative of the City, subject to any requisite authorization by the City Council. Any oral representations or modifications concerning this Agreement shall be of no force or effect.

11.11.4 Severability. If any provision in this Agreement is held by any court of competent jurisdiction to be invalid, illegal, void, or unenforceable, such portion shall be deemed severed from this Agreement, and the remaining provisions shall nevertheless continue in full force and effect as fully as though such invalid, illegal, or unenforceable portion had never been part of this Agreement.

11.11.5 Order of Precedence. In case of conflict between the terms of this Agreement and the terms contained in any document attached as an Exhibit or otherwise incorporated by reference, the terms of this Agreement shall strictly prevail. The terms of the City’s Request for Proposals shall control over the Contractor’s Proposal.

11.11.6 Construction. In the event an ambiguity or question of intent or interpretation arises with respect to this Agreement, this Agreement shall be construed as if drafted jointly by the parties and in accordance with its fair meaning.

There shall be no presumption or burden of proof favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement.

11.12 TIME OF ESSENCE. Time is strictly of the essence of this agreement and each and every covenant, term, and provision hereof.

11.13 AUTHORITY OF CONTRACTOR. The Contractor hereby
represents and warrants to the City that the Contractor has the right, power, legal capacity, and authority to enter into and perform its obligations under this Agreement, and its execution of this Agreement has been duly authorized.

11.14 ARBITRATION OF DISPUTES. Any dispute for under $25,000 arising out of or relating to the negotiation, construction, performance, non-performance, Docusign Envelope ID: 14CA9238-CA4E-4144-83EB-7E3EDC9EDF73 .
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breach, or any other aspect of this Agreement, shall be settled by binding arbitration in accordance with the Commercial Rules of the American Arbitration Association at Los Angeles, California and judgment upon the award rendered by the Arbitrators may be entered in any court having jurisdiction thereof. The City does not waive its right to object to the timeliness or sufficiency of any claim filed or required to be filed against the City and reserves the right to conduct full discovery.

11.15 NOTICES. Any notice or demand to be given by one party to the other must be given in writing and by personal delivery or prepaid first-class, registered or certified mail, addressed as follows. Notice simply to the City of Vernon or any other City department is not adequate notice.

If to the City:

City of Vernon
Attention: Daniel S. Wall, Director of Public Works
4305 Santa Fe Avenue
Vernon, CA 90058
If to the Contractor:

H.W. Lochner, Inc.

Attention: Carlos Velasquez, Project Engineer
1100 Corporate Center Drive, Suite 201
Monterey Park, CA 91754
Any such notice shall be deemed to have been given upon delivery, if personally delivered, or, if mailed, upon receipt, or upon expiration of three (3) business days from the date of posting, whichever is earlier. Either party may change the address at which it desires to receive notice upon giving written notice of such request to the other party.

11.16 NO THIRD PARTY RIGHTS. This Agreement is entered into for the sole benefit of City and Contractor and no other parties are intended to be direct or incidental beneficiaries of this Agreement and no third party shall have any right or remedy in, under, or to this Agreement.

Docusign Envelope ID: 14CA9238-CA4E-4144-83EB-7E3EDC9EDF73 .
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11.17 TERMINATION FOR CONVENIENCE (Without Cause). City may terminate this Agreement in whole or in part at any time, for any cause or without cause, upon fifteen (15) calendar days' written notice to Contractor. If the Agreement is thus terminated by City for reasons other than Contractor's failure to perform its obligations, City shall pay Contractor a prorated amount based on the services satisfactorily completed and accepted prior to the effective date of termination. Such payment shall be Contractor's exclusive remedy for termination without cause.

11.18 DEFAULT. In the event either party materially defaults in its obligations hereunder, the other party may declare a default and terminate this Agreement by written notice to the defaulting party. The notice shall specify the basis for the default. The Agreement shall terminate unless such default is cured before the effective date of termination stated in such notice, which date shall be no sooner than ten (10) days after the date of the notice. In case of default by Contractor, the City reserves the right to procure the goods or services from other sources and to hold the Contractor responsible for any excess costs occasioned to the City thereby. Contractor shall not be held accountable for additional costs incurred due to delay or default as a result of Force Majeure. Contractor must notify the City immediately upon knowing that non-performance or delay will apply to this Agreement as a result of Force Majeure. At that time Contractor is to submit in writing a Recovery Plan for this Agreement. If the Recovery Plan is not acceptable to the City or not received within 10 days of the necessary notification of Force Majeure default, then the City may cancel this order in its entirety at no cost to the City, owing only for goods and services completed to that point.

11.19 TERMINATION FOR CAUSE. Termination for cause shall relieve the terminating party of further liability or responsibility under this Agreement, including the payment of money, except for payment for services satisfactorily and timely performed prior to the service of the notice of termination, and except for reimbursement of (1) any payments made by the City for service not subsequently performed in a timely and satisfactory manner, and (2) costs incurred by the City in obtaining substitute performance. If this Agreement is terminated as provided herein, City may require, at no Docusign Envelope ID: 14CA9238-CA4E-4144-83EB-7E3EDC9EDF73 .
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additional cost to City, that Contractor provide all finished or unfinished documents, data, and other information of any kind prepared by Contractor in connection with the performance of Services under this Agreement. Contractor shall be required to provide such document and other information within fifteen (15) days of the request.

11.19.1 Additional Services. In the event this Agreement is terminated in whole or in part as provided herein, City may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated.

11.20 MAINTENANCE AND INSPECTION OF RECORDS.

The City, or its authorized auditors or representatives, shall have access to and the right to audit and reproduce any of the Contractor's records to the extent the City deems necessary to insure it is receiving all money to which it is entitled under the Agreement and/or is paying only the amounts to which Contractor is properly entitled under the Agreement or for other purposes relating to the Agreement.

The Contractor shall maintain and preserve all such records for a period of at least three (3) years after termination of the Agreement.

The Contractor shall maintain all such records in the City of Vernon.

If not, the Contractor shall, upon request, promptly deliver the records to the City of Vernon or reimburse the City for all reasonable and extra costs incurred in conducting the audit at a location other than the City of Vernon, including, but not limited to, such additional (out of the City) expenses for personnel, salaries, private auditors, travel, lodging, meals, and overhead.

11.21 CONFLICT. Contractor hereby represents, warrants, and certifies that no member, officer, or employee of the Contractor is a director, officer, or employee of the City of Vernon, or a member of any of its boards, commissions, or committees, except to the extent permitted by law.

11.22 HEADINGS. Paragraphs and subparagraph headings contained in this Agreement are included solely for convenience and are not intended to modify, explain or to be a full or accurate description of the content thereof and shall not in any way affect the meaning or interpretation of this Agreement.

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11.23 ENFORCEMENT OF WAGE AND HOUR LAWS. Eight hours labor constitutes a legal day's work. The Contractor, or subcontractor, if any, shall forfeit twenty-five dollars ($25) for each worker employed in the execution of this Agreement by the respective Contractor or subcontractor for each calendar day during which the worker is required or permitted to work more than 8 hours in any one calendar day and 40 hours in any one calendar week in violation of the provisions of Sections 1810 through 1815 of the California Labor Code as a penalty paid to the City; provided, however, work performed by employees of contractors in excess of 8 hours per day, and 40 hours during any one week, shall be permitted upon compensation for all hours worked in excess of 8 hours per day at not less than 1½ times the basic rate of pay.

11.24 FHWA REQUIRED FEDERAL PROVISIONS AND CERTIFICATION.

The FHWA Required Federal Provisions and Certifications set forth in Exhibit D are incorporated as part of this Agreement. Each consultant and subconsultant will be subject to these federal provisions and certifications. The consultant must include these provisions and certifications with all subcontracts.
[Signatures Begin on Next Page].

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IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Commencement Date stated on the cover page.

City of Vernon, a California charter City
and California municipal corporation
By: ____________________________
Brian Saeki, City Administrator
ATTEST:
_______________________________
Genoveva Rocha, City Clerk
H.W. Lochner, Inc., a Wisconsin
corporation
By:

Name:

Title:

By:

Name:

Title:

APPROVED AS TO FORM:
_______________________________
Zaynah Moussa-Milward,
City Attorney
Docusign Envelope ID: 14CA9238-CA4E-4144-83EB-7E3EDC9EDF73 Principal, West Region Planning Lead
Michael Nilsson
Giuseppe Canzonieri
Principal, Southern California Design Lead
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March 2024

DELEGATION OF SIGNATURE AUTHORITY
Employee Name (First, Last) Giuseppe Canzonieri
Job Title/Role Office Manager I
Employee Number 40017
Email Address [email protected]
Legal Entity H.W. Lochner, Inc.

Signature Authority Amount $1 Million
Effective Date of Delegation April 1, 2025
Is Signature Authority limited to a
client, project, or specific role?
No
Delegation of Signature Authority
I, Tom Bacus, hereby Delegate Signature Authority as specified above and acknowledge that Signature Authority must be exercised in accordance with the Corporate Signing Authority Policy and all other applicable Lochner Risk Management policies and procedures.

This delegated Signature Authority is limited to the amount and client, project or specific role specified above and does not delegate or authorize any other signature authority.

By: ______________________________________________
Tom Bacus, California Area Manager
Date: April 1, 2025
Acknowledgement of Delegation
I, Giuseppe Canzonieri, acknowledge receipt of this Delegation of Signature Authority by signing and returning a copy to: Risk Management
___________________________________________________
Employee Signature
Date: April 1, 2025
H.W. Lochner, Inc.

Services Agreement

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March 2024

DELEGATION OF SIGNATURE AUTHORITY
Employee Name (First, Last) Michael Nilsson
Job Title/Role Office Manager I
Employee Number 40094
Email Address [email protected]
Legal Entity H.W. Lochner, Inc.

Signature Authority Amount $1 Million
Effective Date of Delegation April 1, 2025
Is Signature Authority limited to a
client, project, or specific role?
No
Delegation of Signature Authority
I, Tom Bacus, hereby Delegate Signature Authority as specified above and acknowledge that Signature Authority must be exercised in accordance with the Corporate Signing Authority Policy and all other applicable Lochner Risk Management policies and procedures.

This delegated Signature Authority is limited to the amount and client, project or specific role specified above and does not delegate or authorize any other signature authority.

By: ______________________________________________
Tom Bacus, California Area Manager
Date: April 1, 2025
Acknowledgement of Delegation
I, Michael Nilsson, acknowledge receipt of this Delegation of Signature Authority by signing and returning a copy to: Risk Management
___________________________________________________
Employee Signature
Date: April 1, 2025
H.W. Lochner, Inc.

Services Agreement

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EXHIBIT A

CONTRACTOR'S PROPOSAL
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Proposal for City of Vernon Vision Zero Action Plan

SUBMITTED TO
City of Vernon
Carlos Velazquez
Engineering Aide
4305 Santa Fe Avenue
Vernon, CA 90058
October 23, 2025
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1100 Corporate Center Drive, Suite 201 • Monterey Park, CA 91754 OFFICE 323.260.4703 • hwlochner.com
October 16, 2025
City of Vernon
Carlos Velazquez
Engineering Aide
4305 Santa Fe Avenue
Vernon, CA 90058
RE: Proposal for City of Vernon Vision Zero Action Plan Dear Mr. Velazquez:

H.W. Lochner (Lochner) is pleased to provide the City of Vernon with this proposal for professional services to develop the Vernon Vision Zero Action Plan. Lochner understands the project’s objective is to develop a plan that will improve citywide safety, enhance connectivity and access to local destinations, and lay the groundwork for prioritized projects to construct. Additionally, this Plan intends to embed Vision Zero principles into the City’s overall operation and create a culture of roadway safety.

Lochner is excited to present a project approach that graciously blends tried-andtrue safety mobility strategies, with the latest in safety analysis, and practical policy and infrastructure solutions that will address the project’s goals. In our proposal, you will learn:
• Having prepared numerous safety action plans throughout California and throughout the country, Lochner’s core team has the experience and technical know-how to identify the City’s major traffic safety issues and lay out a path for successful project implementation,
• That Lochner has developed several innovative tools that enable us to not only identify where collisions are happening and trends, but to also identify roadway and traffic conditions that can lead to collisions in other areas. This ensures the Vision Zero Plan keeps Vernon ahead of the curve. • That the Lochner team’ in-house engineering staff has led the design and completion of several infrastructure projects throughout California and will provide the City with the groundwork necessary towards project completion.

As you will see in our proposal, assisting our project manager will be several Senior Planners and Engineers from within Lochner, all of whom have years of safety analysis, planning and engineering experience. Their hands-on experience means that the City is getting a team of experts who can complete this assignment from planning to consensus building, and implementation.

COVER LETTER
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To round out our team, we have engaged the services of The Arroyo Group (TAG) to assist with public outreach. TAG has a rich history of successful project delivery and leading engagement efforts throughout Southeast LA County cities, including in Vernon; they will bring this expertise to the City.

Thank you for this opportunity to offer our services. As a firm principal, I am authorized to make representations for the firm. I, Michael Nilsson, AICP CTP, will serve as the Principal-in-Charge and Quality Assurance/Quality Control task leader for this project. This proposal shall remain valid for a period of not less than ninety (90) days from the date of submittal.

Mr. Carlos Velasquez, AICP, LCI will serve as the Project Manager. Having grown up in nearby South Gate and having completed several safety and active transportation projects in nearby Bell Gardens, Commerce, and Downey, he brings personal familiarity with Vernon traffic and mobility issues and will provide the project with an engaged Project Manager that will ensure project delivery. He can be reached at [email protected].

I look forward to speaking with you soon regarding our proposal. I can be reached at (619) 683-2933 or via e-mail at [email protected].

Sincerely,
Michael Nilsson, AICP CTP
Principal | Southern California Planning Lead
1100 Corporate Center Drive, Suite 201
Monterey Park, CA 91754
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1 Proposal for City of Vernon Vision Zero Action Plan

TABLE OF CONTENTS
COVER LETTER ................................... Not included in page count TABLE OF CONTENTS ..........................................................1 SECTION 1: INTRODUCTION................................................2 SECTION 2: GENERAL SCOPE OF WORK...............................5 SECTION 3: WORK PLAN......................................................6 SECTION 4: FEES AND COSTS ..............................................11 Submitted separately in a sealed envelope per RFP Section F .................................. 11 SECTION 5: ABILITY OF THE PROPOSER TO PERFORM.........12 Firm Profile ..........................................................................................................12 Organizational Chart............................................................................................13 Key Personnel .....................................................................................................14-15 Relevant Project Experience.................................................................................16-19 References ...........................................................................................................20 APPENDIX A: RESUMES ........................................................i Not part of page count..............................................................................................i-iv APPENDIX B: FORMS AND CERTIFICATIONS ........................v Not part of page count..............................................................................................v APPENDIX C: CONTRACT EXCEPTIONS ...............................xviii Not part of page count..............................................................................................xviii Docusign Envelope ID: 14CA9238-CA4E-4144-83EB-7E3EDC9EDF73 .
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SECTION 1: INTRODUCTION 2

INTRODUCTION
With an area of approximately five square miles and a population of roughly 200 residents (2020, U.S. Census Bureau), the City of Vernon is the smallest city in California. However, as an exclusively industrial city with more than 1,800 businesses and a working population exceeding 50,000 employees, Vernon’s economic reach extends well beyond its boundaries.

This economic success comes with complex transportation challenges. The City’s industrial activity requires balancing the mobility and safety needs of its workforce and vulnerable road users amid a constant flow of commercial trucks and freight traffic. Many of Vernon’s workers commute by walking, bicycling, or transit— often along corridors with limited or missing sidewalks and no dedicated bikeway facilities—making them particularly vulnerable to collisions involving heavy trucks and passenger vehicles. Between 2020 and 2024, there were 1,939 total reported collisions in Vernon, of which 39 resulted in a fatality or severe injury (KSI). The corridors with the highest concentration of KSI collisions include:

1. Bandini Boulevard, between Sierra Pine Avenue and Atlantic Boulevard (5 KSI)

2. District Boulevard, between Loma Vista Avenue and Gifford Avenue (5 KSI)

3. Santa Fe Avenue, between Fruitland Avenue and 57th Street (5 KSI)

4. Fruitland Avenue, between Santa Fe Avenue and Alcoa Avenue (5 KSI) To address these issues, the City is embarking on a transformative effort to create a sustained culture of safety through its Vision Zero Action Plan. This plan will build on previous studies and infrastructure investments to identify where and why collisions occur, analyze safety trends, and propose meaningful, data-driven improvements to advance the City’s transportation safety goals.

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SECTION 1: INTRODUCTION 3
Lochner’s Approach and Commitment to Quality
Lochner is excited to partner with the City of Vernon on this critical initiative. Our multidisciplinary team of transportation planners, traffic engineers, and safety analysts has extensive experience developing Vision Zero and Safe Streets for All (SS4A) Action Plans, as well as Local Roadway Safety Plans (LRSPs) across Southern California. We understand that the City’s goal is not only to improve roadway safety but also to ensure compliance and eligibility for future federal safety funding opportunities.

Lochner’s approach is grounded in a proven process that integrates technical rigor, predictive analytics, and meaningful community engagement. Our methods include:
• Comprehensive Safety Analysis: Using advanced collision modeling, trend analysis, and predictive analytics to identify KSI-prone locations and systemic risk factors.
• GIS-Based Tools: Leveraging in-house proprietary software and ArcGIS StoryMaps to present safety data, trends, and proposed countermeasures in an accessible, web-based format.
• Implementation-Focused Recommendations: Ensuring all proposed improvements are constructable, fundable, and implementable, supported by the expertise of our registered civil and traffic engineers. • Culturally Responsive Outreach: Engaging Vernon’s primarily Spanishspeaking workforce through bilingual materials, targeted outreach, and collaboration with local employers and organizations.

To ensure quality and timely delivery, Lochner’s project management framework emphasizes continuous client communication, early issue identification, and comprehensive internal quality control. Project Manager Carlos Velásquez, AICP, will provide day-to-day oversight, coordinate with City staff, and manage all deliverables to maintain alignment with schedule, budget, and performance expectations.

Why Lochner
Lochner is uniquely positioned to support the City of Vernon in achieving its Vision Zero goals because:

1. Proven Safety Planning Expertise: We have prepared numerous LRSPs and safety action plans for nearby cities, including Bell Gardens and Commerce, providing us with a deep understanding of the region’s roadway and freightmobility context.

2. Integrated Planning and Engineering: Our team blends the technical expertise of engineers with the strategic perspective of planners, enabling the development of implementable safety improvements that are consistent with the City’s vision and infrastructure goals.

3. Innovative Tools and Efficient Delivery: Our proprietary tools and digital platforms allow us to rapidly update collision data, visualize findings, and communicate results effectively to City staff and the community.

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SECTION 1: INTRODUCTION 4
Through this effort, Lochner will deliver a data-driven, community-supported, and implementation-ready Vision Zero Action Plan—a roadmap to make Vernon’s streets safer for all who live, work, and travel within the City.

Lochner’s In-House Collision Analysis Tool
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SECTION 2: GENERAL SCOPE OF WORK 5

GENERAL SCOPE OF WORK
The Lochner team proposes a comprehensive approach to developing Vernon’s Vision Zero Action Plan, integrating data-driven safety analysis, community engagement, countermeasure development, and implementation planning.

Task 1: Project Management and Goal Setting – Lochner will initiate the project with a kick-off meeting, establish schedules and goals, and facilitate bi-weekly progress meetings. A Vision Zero Committee will provide oversight through up to two facilitated meetings. Monthly progress summaries and invoices will ensure accountability and transparency.

Task 2: Collision History and Safety Data Analysis – Lochner will analyze five years of collision data to identify High-Injury Networks and develop multimodal Collision Profiles. Equity and socio-demographic analysis will identify vulnerable populations and priority areas. Predictive and systemic collision analyses will inform countermeasure selection. Deliverables include GIS mapping, Collision Profiles, and a Collisions Assessment Memo.

Task 3: Engagement and Collaboration – The Arroyo Group, in coordination with Lochner, will implement inclusive engagement, including three community workshops, online interactive mapping, bilingual outreach materials, and a Technical Memorandum summarizing public input and key themes.

Task 4: Countermeasures and Implementation Program – Lochner will develop a prioritized Countermeasure Toolbox, an Implementation Plan with project ranking, funding strategy, cost estimates, and anticipated benefits, and four projects incorporated into a five-year implementation roadmap.

Task 5: Final Action Plan Implementation and Presentation – Draft and Final Action Plans will consolidate prior analyses, policies, and recommended countermeasures. Lochner will present a public-facing summary to City Council to facilitate adoption.

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SECTION 3: WORK PLAN 6

WORK PLAN
TASK 1: PROJECT MANAGEMENT AND GOAL SETTING
TASK 1.1 KICK-OFF MEETING
Schedule a Kick-Off meeting with the City and other community and project partners. Lochner will draft an agenda and provide that to the City before the meeting for review and comment. Lochner can schedule the meeting to happen in person if that is preferred. At the kick-off meeting, Lochner will present the project schedule, which will be reviewed at each ongoing bi-weekly meeting.

TASK 1.2 BI-WEEKLY PROJECT TEAM MEETINGS
Schedule bi-weekly project team meetings to discuss project progress, deliverables, and other milestones. Lochner will prepare meeting agendas, facilitate the meetings, and keep meeting minutes. These meetings are anticipated to take place virtually, although some can take place in person (as preferred by the City).

TASK 1.3 ESTABLISH A VISION ZERO COMMITTEE/TASK FORCE/

IMPLEMENTATION GROUP
Lochner will coordinate with the City to select individuals who will oversee the development of the Action Plan. The members of this committee will be confirmed with the City, but will typically involve staff from other city departments, associated City agencies such as Fire, Police, and community members (Chamber of Commerce). Up to two (2) meetings will be scheduled and facilitated with this group.

TASK 1.4 MONTHLY REPORTING
Prepare monthly invoices and summary of completed tasks and progress reports.

Task 1 Deliverables:
• Schedule kick-off meeting and all pertinent materials, including project schedule, • Schedule bi-weekly project team meetings, including all materials and meeting minutes,
• Establish Vision Zero Committee and schedule up to two meetings with this group; Lochner will prepare agendas. It is anticipated that these meetings will take place virtually.
• Monthly summaries for invoicing.

TASK 2: COLLISION HISTORY AND SAFETY DATA ANALYSIS
TASK 2.1 EXISTING CONDITIONS
Lochner will obtain and analyze the most recent five years of collision data from SWITRS and City sources. Collisions will be categorized by type, severity, and mode, Docusign Envelope ID: 14CA9238-CA4E-4144-83EB-7E3EDC9EDF73 .
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SECTION 3: WORK PLAN 7
including motor vehicle, pedestrian, bicycle, and truck-related crashes. Using GIS, we will map all collisions to illustrate citywide patterns and identify key contributing factors such as roadway type, time of day, and lighting. The results will establish a baseline understanding of existing safety conditions.

TASK 2.2 HIGH INJURY NETWORK AND PRIORITY LOCATIONS
A multimodal High-Injury Network (HIN) will be developed to identify roadway segments and intersections with the highest concentrations of severe and fatal collisions. Using a weighted scoring method, Lochner will prepare mode-specific and combined HIN maps for vehicles, pedestrians, and bicycles. These will highlight critical corridors—especially those serving industrial land uses and truck routes—to guide prioritization of safety improvements.

Each network will include descriptive summaries that identify collision trends by mode and highlight patterns related to truck activity, worker access areas, and key intersections serving industrial land uses. These findings will be used to guide prioritization of near-term and long-term safety improvements.

TASK 2.3 SOCIO-DEMOGRAPHIC AND EQUITY ANALYSIS
To align with Vision Zero’s equity principles, Lochner will overlay collision data with socio-demographic and environmental indicators using CalEnviroScreen and SCAG’s EJ Screening Tool. This analysis will identify underserved populations and areas where severe collisions coincide with vulnerable road users or limited mobility options. The results will inform equitable investment priorities and ensure proposed safety strategies benefit all users traveling to and through Vernon.

TASK 2.4 PREDICTIVE AND SYSTEMIC COLLISION ANALYSIS
Lochner will conduct a systemic collision analysis that cross-tabulates crash data with roadway and contextual characteristics (e.g., speed, land use, and intersection control) to identify patterns common among high-severity collisions. From this, Collision Profiles will be defined for each mode, summarizing conditions, contributing factors, and applicable countermeasures. These findings will inform a user-friendly Safety Countermeasure Toolbox to guide future project identification and grant applications.

Task 2 Deliverables:
• Existing Conditions Collision Analysis and Mapping,
• High-Injury Network Development and Collision Profiles, • Socio-Demographic and Equity Analysis and Mapping,
• Predictive and systemic collision analysis
• Draft and Final Collisions Assessment Memo.

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SECTION 3: WORK PLAN 8
TASK 3: ENGAGEMENT AND COLLABORATION
TASK 3.1 PUBLIC ENGAGEMENT PLAN
The Arroyo Group will prepare a Public Engagement Plan outlining the engagement strategy, schedule, and deliverables for each outreach activity conducted throughout the Vision Zero Action Plan process. The Plan will identify key stakeholder groups, outreach methods, and engagement tools—ensuring an inclusive, equitable process that reaches Vernon’s diverse workforce. Drawing on its previous experience working with the City of Vernon on community-based planning efforts, The Arroyo Group will tailor engagement methods to reflect the City’s unique industrial context and working population. The Plan will be reviewed with City staff at project initiation to confirm alignment with project goals and available resources.

TASK 3.2 COMMUNITY MEETINGS/WORKSHOPS
The Arroyo Group will lead three community workshops designed to gather input, build understanding, and validate plan recommendations. • Workshop 1 – Existing Conditions: Conducted early in the process, this meeting will introduce the Vision Zero effort and solicit input on unsafe locations and potential solutions. Large-scale engagement boards and bilingual facilitation will encourage open participation. • Workshop 2 – Biking and Walking in Vernon: Focused on active transportation needs, this meeting will gather input on bicycle and pedestrian safety improvements and prioritize investments with the greatest potential safety benefits.
• Workshop 3 – Draft Plan Review: This final meeting will present the Draft Vision Zero Action Plan, summarizing key findings and proposed countermeasures. Stakeholders will provide feedback on priority actions and implementation strategies before plan adoption.

TASK 3.3 ONLINE ENGAGEMENT
Lochner will develop and manage digital engagement tools to extend participation beyond in-person events. A project webpage hosted on the City’s website will provide general project information, the schedule, documents for review, and links to interactive activities. The team will also prepare social media content and event flyers (using Canva templates) for City posting on platforms such as Instagram and Facebook, including bilingual versions.

An online interactive mapping activity will be launched at project initiation to collect location-based input on unsafe corridors and desired safety improvements.

Outreach will include coordination with local employers and business associations to engage workers who walk or bike to work, leveraging existing relationships The Arroyo Group has developed in prior Vernon projects.

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SECTION 3: WORK PLAN 9
TASK 3.4 TECHNICAL MEMORANDUM
Upon completion of all engagement activities, The Arroyo Group will prepare a Technical Memorandum summarizing public input, key themes, and recommended actions. The memorandum will document outreach methods, participation metrics, and how feedback was incorporated into the Vision Zero Action Plan, serving as a transparent record of community collaboration and responsiveness.

Task 3 Deliverables:
• Public Engagement Plan,
• Community Workshop planning, coordination, facilitation, materials, and documentation,
• Online Engagement – materials (webpage content), interactive mapping survey, event flyers/promotion,
• In-Person and Online engagement results,
• Technical memorandum.

TASK 4: COUNTERMEASURES AND IMPLEMENTATION

PROGRAM
TASK 4.1 COUNTERMEASURE TOOLBOX DEVELOPMENT
Lochner will compile a Countermeasure Toolbox integrating proven Vision Zero and SS4A strategies, informed by Lochner’s prior industrial corridor projects.

Toolbox measures will be prioritized based on collision patterns, emphasis areas, community input, and feasibility assessments. The toolbox will include innovative treatments from comparable jurisdictions, presented in a user-friendly format for City staff, stakeholders, and public workshops.

TASK 4.2 COUNTERMEASURE IMPLEMENTATION PLAN
Lochner will develop a Countermeasure Implementation Plan that translates the toolbox into an implementable strategy. This will include:
• Prioritization: Using criteria such as closure of critical gaps, cost-effectiveness, feasibility, and community support, Lochner will work with the City to rank and select the highest-priority projects.
• Implementation Framework: Projects will be scheduled with time ranges for deployment and aligned with funding cycles.
• Funding Strategy: A memo will identify relevant funding sources for active transportation, urban greening, trails, and recreation, matching priority projects with the most suitable sources. Infographics will summarize opportunities for easy reference.
• Cost Analysis and Benefits: Itemized cost estimates and expected safety and mobility benefits will be prepared for prioritized projects and associated amenities.

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TASK 4.3 PROJECT DEVELOPMENT (4)
Lochner will develop four (4) projects that demonstrate the effectiveness of recommended countermeasures. Each project will include conceptual layouts, cost estimates, and schedules; Lochner will work with the City to integrate into a fiveyear Implementation Plan. Each project will include conceptual design plans (up to 30%) that will include dimensions, right-of-way lines, and other elements (see sample below). The plans can be then used as part of grant applications and other elements to lay out a pathway towards implementation.

Task 4: Deliverables
• Countermeasure and Project Development,
• Project Implementation Plan,
• Sample Project Development and Implementation of four (4) projects.

TASK 5: FINAL ACTION PLAN IMPLEMENTATION AND

PRESENTATION
TASK 5.1 DRAFT ACTION PLAN
Lochner will prepare the Draft Action Plan and circulate it to City staff and stakeholders for review. The draft will include an assessment of relevant policies, guidelines, and standards, as well as project prioritization and cost considerations.

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SECTION 3: WORK PLAN 11
SECTION 4: FEES AND COSTS
needed, with presentation materials provided to City staff for inclusion in reports and outreach. Feedback from City staff, stakeholders, and advisory committees will be consolidated to guide revisions.

TASK 5.2 FINAL ACTION PLAN
Based on input received on the draft plan, Lochner will produce a Final Action Plan that provides a clear roadmap for implementation. The plan will include recommended strategies, next steps for environmental review, permitting, and engineering approvals, and guidance for future updates based on new data or emerging needs. The final plan will be structured to support ongoing Vision Zero implementation and funding eligibility.

TASK 5.3 CITY COUNCIL PRESENTATION AND ADOPTION
Lochner will prepare a public-facing summary presentation highlighting key findings, priority improvements, and the implementation program. The team will present the Final Action Plan to City Council to facilitate formal adoption. Materials will be designed for clarity and accessibility to both decision-makers and the general public, ensuring a transparent and inclusive presentation process.

Task 5: Deliverables
• Draft Action Plan,
• Review comments and prepare Final Action Plan,
• Prepare City Council Meeting materials and present at Council Meeting on behalf of the City and facilitate Plan Adoption.

SECTION 4: FEES AND COST

PRICE PROPOSAL
Lochner has submitted our price proposal in a separate sealed envelope per RFP Section F.

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12 Proposal for City of Vernon Vision Zero Action Plan
SECTION 5: ABILITY OF THE PROPOSER TO PERFORM
Firm Profile

FIRM PROFILE
Lochner’s mission is to improve the lives of people and their communities. As a people-centric organization, our professionals are dedicated to transforming challenges
into opportunities. Lochner leads in delivering planning, environmental, design, construction engineering and
inspection, right-of-way, and drainage services for
highway, bridge, rail, transit, municipal, and aviation clients across the United States.

Founded in 1944 and headquartered in Chicago, Lochner
provides planning, environmental, design, construction
engineering and inspection, and right-of-way services
for surface transportation, aviation, rail and transit
clients across the United States. With offices in 22 states, Lochner’s 1000+ employees are problem-solvers, driven
by transforming transportation infrastructure challenges into opportunities. In December 2022, Lochner
expanded its services and geographic footprint through
the acquisition of California-based KOA Corporation
and Colorado-based Armstrong Consultants. In May
of 2023, Lochner acquired Texas-based K. Friese +
Associates, establishing and growing water/wastewater
and drainage services as a core component of their
civil infrastructure offering. In 2024, Lochner acquired Triunity, expanding their transit and rail practice. In January of 2025, Green International Affiliates, Inc. joined Lochner.

FINANCIAL CONDITION
H.W. Lochner, Inc. certifies that we are a financially
stable firm with the necessary resources, both human
and financial, to provide the services at the level required for the project. Founded in 1944, Lochner is a full-service multi-discipline firm with over 1000 professionals,
including engineers, planners, and technicians who
collaborate to deliver all modes of innovative, creative, state of-the-art, cost-effective transportation solutions.

TYPES OF SERVICES
• Transportation
Planning and
Complete Streets
Safety Analysis
• Engineering &
Design
• Environmental
• Geographic
Information
Systems (GIS)
Mapping and
Analysis
• Planning
• Program &
Construction
Management
• Technology

SIZE AND

LOCATION OF

OFFICES
• 50+ Offices in 22
states
• The size of
Lochner’s
individual offices
vary and range
from 5 to 30 staff
on average as
well as additional
hybrid/remote
employees that
are affiliated with
an office.

NUMBER OF

EMPLOYEES
1200+ Employees
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Item 9 Page 37 of 201
SECTION 5: ABILITY OF THE PROPOSER TO PERFORM 13
Organizational Chart
Proposal for City of Vernon Vision Zero Action Plan

ORGANIZATIONAL CHART
The organizational chart identifies key Lochner staff and subconsultants, their roles, and lines of communication to ensure efficient coordination and quality control. Staff will be assigned on an as-needed basis depending on project scope and schedule, ensuring the City receives the most qualified expertise for each task.

Michael Nilsson, AICP CTP*
(25%)

PRINCIPAL-IN-CHARGE
Carlos Velasquez, AICP, LCI^*
(45%)

PROJECT MANAGER
Collision &
Safety Data Analysis
Frank Barrera, RSP1^*
(35%)
Task Lead
Raquel Jimenez^
Data Analysis Lead
Jared Wright
Equity Analysis
Engagement &
Collaboration
Philip Burns^* (TAG) (35%)
Task Lead
Margaret Munoz^ (TAG)
Workshop & Facilitation Lead
David Mariscal^
Digital Engagement Lead
Lydia Rivera^
Meeting Support
Countermeasure &
Implementation Program
Giuseppe Canzonieri, PE* (35%)
Task Lead
Walter Okitsu, PE, PTP, PTOE* (25%)
Feasibility Analysis Lead
Nicolette Seargeant, EIT
Cost Estimates and Concepts
Armin Jorgenson, AICP
Funding and Implementation
Final Action Plan
Implementation
Carlos Velasquez, AICP, LCI*^
Task Lead
Hilary Mau* (30%)
Draft Review & QA/QC
Vivian Park
Document Drafting &
Graphics Support

PROJECT TEAM
SUBCONSULTANT:

The Arroyo Group (TAG)
LEGEND:
* Key Personnel
^ Bilingual (Spanish)
% Amount of time key
personnel will be involved
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SECTION 5: ABILITY OF THE PROPOSER TO PERFORM 14
Key Personnel
Proposal for City of Vernon Vision Zero Action Plan

KEY PERSONNEL STAFF
In accordance with the City’s Q&A clarification, full detailed resumes for all key personnel are provided as a separate attachment. The table below highlights each team member’s core qualifications, education, and relevant project experience demonstrating their ability to successfully deliver the Vision Zero Action Plan.

KEY PERSONNEL (ROLE) EXPERIENCE
Carlos Velasquez, AICP
(Project Manager Final Action
Implementation Task Lead)
Carlos Velásquez, AICP, is a certified planner with nearly 20 years of experience leading transportation safety and planning projects across Southern California. As Project Manager and Practice Lead for Lochner’s Transportation Planning group, Carlos specializes in Vision Zero and Safe Streets for All (SS4A) planning, transportation safety analysis, active transportation, and complete streets. He applies predictive analytics and data-driven methods to identify high-risk corridors and develop targeted countermeasures that reduce fatal and severe injury collisions. Relevant projects include LA County Vision Zero On-Call, Bell Gardens Safe Streets for All Plan, and Commerce LRSP Update.

Michael Nilsson, AICP CTP
(Principal-In-Charge)
Michael Nilsson is a Principal and the Director of Planning at Lochner with over 22 years of experience leading transportation planning and safety projects across Southern California. He specializes in linking land use and mobility policies to create sustainable, high-quality environments, with expertise in Vision Zero, complete streets, and active transportation planning. His experience includes oversight of multimodal plans and funding implementation for agencies such as the Chicago Metropolitan Agency for Planning, City of Fullerton, and City of Commerce.

Frank Barrera, RSP1
Collision & Safety Data
Analysis Lead
Frank has 20 years of experience in transportation planning and safety analysis, specializing in Safe Routes to School (SRTS) programs and data-driven evaluations. He has managed traffic impact, parking, circulation, and mobility studies, as well as bikeway and safety improvement projects across Southern California. His expertise includes GIS database development, bicycle corridor analysis, and public outreach coordination to support community-focused mobility solutions. Relevant projects include the Chicago Metropolitan Agency for Planning (CMAP) SS4A Countywide Safety Action Plan, City of Wildomar SSAR/LRSP/SS4A Plan, City of La Habra LRSP, and City of Bell Gardens Safe Streets for All Plan.

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SECTION 5: ABILITY OF THE PROPOSER TO PERFORM 15
Key Personnel
Proposal for City of Vernon Vision Zero Action Plan

KEY PERSONNEL (ROLE) EXPERIENCE
Philip Burns, AICP
Engagement & Collaboration
Task Lead
Philip Burns is a Managing Principal and Project Manager at The Arroyo Group with expertise in land use planning, zoning, housing policy, and bilingual community engagement. He has managed multidisciplinary teams in urban design, active transportation, traffic studies, economics, and environmental clearance. Philip has led visioning and feasibility efforts for affordable housing on congregational land. Relevant projects include the City of Inglewood Transit-Oriented Development Plans, City of Vernon Mixed-Use Specific Plan, and City of Norwalk Heart of Norwalk Vision/Specific Plan.

Giuseppe Canzonieri, PE
Countermeasure &
Implementation Program
Task Lead
Giuseppe Canzonieri has performed numerous projects for both public and private developments throughout Southern California. He has considerable experience working with roadway design, traffic signal design, signing & striping design, traffic control design, construction specifications and cost estimates. Giuseppe is known for his quality control capabilities and providing clients with high quality construction documents. Relevant projects include the City of Commerce Safe Streets for All Action Plan and LRSP Update, City of Los Angeles LADOT Safe Routes to School Plans for Top 50 Schools with Most Need, and City of Downey Safe Routes To School and PS&E.

Walter Okitsu, PE, PTP,
PTOE, RSP2I
Feasibility Analysis Task Lead
Walter Okitsu is a Principal and has extensive experience in transportation planning and traffic design. He is responsible over a wide variety of highway, transit way, and bikeway projects. This includes designs for traffic signals, street lighting, signing & striping, worksite traffic control. In this role, he collaborates with the project managers in all Lochner’s Southern California office locations to ensure Lochner delivers high quality products to our clients. He has field and managerial experience on traffic impact, feasibility analysis, and circulation projects. He has been instrumental in developing and implementing Lochner’s QA/QC process while serving as QA/QC Manager for traffic engineering projects.

Hilary Mau
Final Action Plan
Implementation - Draft
Review & QA/QC
Hilary Mau has over 17 years of experience managing transportation planning and traffic engineering projects for public and private clients throughout Southern California. Her responsibilities include preparation and review of transportation impact studies, parking supply and demand studies, shared parking analyses, traffic circulation and access studies, roadway safety studies, Transportation Demand Management (TDM) Plans, mitigation monitoring reports, and traffic signal warrant analyses.

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SECTION 5: ABILITY OF THE PROPOSER TO PERFORM 16
Relevant Project Experience
Los Angeles County Vision Zero On-Call
Lochner is leading a three-year Vision Zero bench contract with the Los Angeles County Department of Public Works focused on advancing roadway safety through innovation, data-driven analysis, and strategic project implementation. Under this on-call agreement, Lochner is managing a multidisciplinary team of specialized subconsultants to assess safety conditions across unincorporated communities and implement improvements that reduce serious and fatal crashes.

Our team is employing state-of-the-art collision analysis methods and predictive modeling tools to identify high-collision corridors, intersections, and systemic risk factors. These advanced techniques enable us to move beyond traditional reactive approaches—allowing the County to proactively address locations with the highest potential for safety gains. The results of this work will inform targeted engineering, education, and enforcement strategies, leading to measurable reductions in severe crashes and creating a safer, more equitable transportation network throughout unincorporated Los Angeles County.

FIRM: Lochner | STAFF: Carlos Velasquez, Michael Nilsson, Giuseppe Canzonieri, Hilary Mau, David Mariscal, Raquel Jimenez, Armin Jorgenson, Vivian Park Chicago Metropolitan Agency for Planning (CMAP) SS4A Countywide Safety Action Plan
Lochner recently completed the Kane County SS4A Countywide Safety Action Plan for the Chicago Metropolitan Agency for Planning (CMAP). The team is leading the overall development of the Kane County Safety Action Plan, which will included an implementation strategy and countermeasures to address safety issue areas.

Lochner analyzed existing and predictive crash trends, engaging community members, and developed the County’s High Injury Network and priority locations.

The Safety Action Plan will make the County applicable for large-scale federal construction funding, leading to on-the-ground infrastructure changes.

FIRM: Lochner | STAFF: Michael Nilsson, Frank Barrera, Jared Wright, Raquel Jimenez Docusign Envelope ID: 14CA9238-CA4E-4144-83EB-7E3EDC9EDF73 .
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SECTION 5: ABILITY OF THE PROPOSER TO PERFORM 17
Relevant Project Experience
City of Bell Gardens Safe Streets for All Action Plan (SS4A) Lochner is working with the City of Bell Gardens to evaluate traffic safety conditions citywide and identify opportunities to improve safety for all roadway users. As part of this effort, Lochner is leading a comprehensive approach that combines datadriven analysis with meaningful community engagement to inform actionable safety strategies. Our team is collecting and analyzing existing conditions to establish a strong baseline for understanding collision patterns and risk factors. We are implementing a robust engagement strategy that includes both digital and in-person outreach—such as surveys, community pop-ups, and open houses—to ensure local voices guide the process. Building on these insights, Lochner is developing targeted countermeasures to address key safety concerns and drafting a Safety Action Plan that positions the City for future infrastructure funding opportunities.

FIRM: Lochner | STAFF: Carlos Velasquez, Giuseppe Canzonieri, Walter Okitsu, Raquel Jimenez, David Mariscal
City of Fullerton Safe Streets for All Action Plan (SS4A) Lochner is assisting the City in developing a Safe Streets for All Action Plan to update its Local Roadway Safety Plan (LRSP) and ensure compliance with the federal Safe Streets for All (SS4A) program. This initiative prioritizes the reduction of fatal and severe injury collisions by applying innovative predictive analytics to identify high-risk corridors, intersection hot spots, and systemic safety issues.

Our approach integrates historical collision data with contextual factors such as traffic volumes, roadway geometry, and land use to pinpoint areas where targeted countermeasures will have the greatest impact. In addition, Lochner leads comprehensive community engagement to inform residents about the project, gather input on local safety concerns, and solicit feedback on proposed improvements. By combining technical analysis with stakeholder perspectives, our team ensures that the resulting strategies are both data-driven and communitysupported, enabling actionable safety improvements that enhance mobility and protect all road users.

FIRM: Lochner | STAFF: Carlos Velasquez, Michael Nilsson, Armin Jorgenson, Jared Wright, Raquel Jimenez
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SECTION 5: ABILITY OF THE PROPOSER TO PERFORM 18
Relevant Project Experience
Riverside County Safe Streets for All Action Plan (SS4A) Lochner is supporting the County of Riverside Transportation Department in developing a comprehensive Safe Streets and Roads for All (SS4A) Safety Action Plan (SAP) that advances the County’s Vision Zero goals and strengthens its readiness for future safety infrastructure funding. Our team is leading the technical development of the plan, which includes conducting data-driven safety analyses, identifying emphasis areas, and prioritizing high-collision locations for improvement.

Lochner is analyzing the most recent five years of crash data across the County’s unincorporated areas to identify patterns, contributing factors, and systemic risks affecting all roadway users, with particular attention to vulnerable populations.

Building on this analysis, Lochner is developing targeted countermeasures, performance metrics, and policy recommendations to guide the County’s longterm safety investments. Our team is integrating equity, environmental, and economic considerations into each phase of the plan, ensuring that proposed strategies are both data-supported and socially equitable. We are also preparing an implementation plan that establishes measurable safety benchmarks, defines emphasis areas, and outlines prioritized projects and typologies for high-crash locations—laying a clear, actionable foundation for the County’s commitment to eliminating roadway fatalities and serious injuries.

FIRM: Lochner | STAFF: Carlos Velasquez Michael Nilsson, Frank Barrera, Jared Wright City of Commerce SS4A/LRSP Update
The City of Commerce retained Lochner to develop a Local Roadway Safety Plan (LRSP). The project took a systemic and proactive approach to address citywide transportation safety and identify the emphasis of improvements. Based on the most recent five years of available collision data from the SWITRS collision database, Lochner identified high-priority safety needs and a list of safety improvement projects that provide the most substantial benefit/cost ratio results.

The safety measures also included the non-engineering solutions related to the 4 E`s of safety (engineering, education, enforcement, and emergency medical services). Lochner met with the stakeholders for their input on transportation safety. Lochner developed a project website for stakeholder input on transportation safety.

FIRM: Lochner | STAFF: Carlos Velasquez, Michael Nilsson, Giuseppe Canzonieri Walter Okitsu, Hilary Mau, Raquel Jimenez
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SECTION 5: ABILITY OF THE PROPOSER TO PERFORM 19
Relevant Project Experience
City of San Bernardino SS4A Baseline Street Study
Lochner is leading the development of a comprehensive supplemental safety planning study for Baseline Street from Meridian Avenue to Tippecanoe Avenue, a high-collision corridor identified in the SBCTA Non-Motorized Transportation Plan for Class II bike lane implementation. With more than 700 pedestrian and bicycle crashes and 70 fatalities reported between 2016 and 2020, this effort applies an evidencebased, data-driven approach to address critical safety issues for all road users.

Lochner’s team is conducting a detailed collision analysis to identify crash patterns, contributing factors, and high-priority locations for intervention. The planning effort evaluates and conceptually designs a range of targeted countermeasures—including corner extensions, road diets, high-visibility crosswalks, RRFBs, raised crossings, and new bicycle facilities—aimed at reducing or eliminating roadway fatalities and serious injuries in alignment with Vision Zero principles. The project also includes robust engagement with residents, community stakeholders, and agency partners to ensure recommendations reflect local context and equity priorities. The resulting strategies will inform an amendment to the City’s Local Road Safety Plan (LRSP) and establish a clear, implementable framework to advance Vision Zero and improve multimodal safety along the Baseline Street corridor.

FIRM: Lochner | STAFF: Carlos Velasquez Michael Nilsson, Giuseppe Canzonieri, Frank Barrera, Jared Wright
City of Vernon a Vision for the Westside of Vernon - Westside Mixed Use Zoning Amendment Housing Element
The Arroyo Group prepared zoning code and General Plan Amendments to introduce a mix of uses including residential, live/work, creative office, production retail and R&D facilities into a city which up to this point has been considered “exclusively industrial.” The purpose of these zoning and General Plan Amendments was to increase the City’s tiny population, strengthening the City’s long-term governance, and to strengthen Vernon as a center of production by attracting talent, creativity and design. These zoning and General Plan Amendments create viable and livable potential for development withing the heavy industrial environment. Along with the zoning code and General Plan Amendments, The Arroyo Group prepared a graphically rich vision document detailing catalytic developments, transportation changes, streetscape improvements, implementation strategies and other actions that can be undertaken to help the new mixed-use zones transform into a livable and productive part of the community. Detailed traffic analysis were conducted to evaluate how trucks could be moved away from mixed-use zones and toward other routes. These changes and improvements detailed in the vision document aim to improve the experience of living in Vernon for current and future Westside residents.

FIRM: The Arroyo Group (TAG) | STAFF: Philip Burns, Margaret Munoz Docusign Envelope ID: 14CA9238-CA4E-4144-83EB-7E3EDC9EDF73 .
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SECTION 5: ABILITY OF THE PROPOSER TO PERFORM 20
List of References
Sonoma County Transportation and Climate
Authorities (SCTA)
Margot Ocañas (Formerly LADOT)
Senior Transportation Planner
411 King Street
Santa Rosa, CA 94520
(213) 703-3374
[email protected]
Southern California Association of Governments
(SCAG)
Rachel Om
Senior Regional Planner
900 Wilshire Boulevard
Los Angeles, CA 90017
(213) 630-1550
[email protected]
City of Bell Gardens
Bernardo Iniguez
Director of Public Works/Facilities
8327 Garfield Avenue
Bell Gardens, CA 90201
(562) 806-7770
[email protected]
City of Fullerton
Michael Plotnik, PE, TE
City Traffic Engineer
303 W. Commonwealth Avenue,
Fullerton, CA 92832
(714) 738-6864
[email protected]

REFERENCES
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APPENDIX A: KEY PERSONNEL RESUMES
Not Part of Page Count
Carlos Velasquez, AICP, LCI
Project Manager | Final Action Plan Implementation
Task Lead | 18 Years of Experience
Carlos Velásquez, AICP, is a certified planner
with nearly 20 years of experience leading
transportation safety and planning projects
across Southern California. As Project Manager
and Practice Lead for Lochner’s Transportation
Planning group, Carlos specializes in Vision
Zero and Safe Streets for All (SS4A) planning,
transportation safety analysis, active
transportation, and complete streets. He applies
predictive analytics and data-driven methods to
identify high-risk corridors and develop targeted
countermeasures that reduce fatal and severe
injury collisions.

Carlos provides proactive leadership through
all project phases, maintaining consistent client
communication, resolving issues, and ensuring
the delivery of high-quality, actionable plans. He
has managed over $10 million in transportation
planning contracts, leading large, multidisciplinary
teams on efforts such as multi-year Safe Routes
to School (SRTS) and Quick Build programs for
LADOT and SCAG. These initiatives combined
bilingual community engagement, safety-focused
design, and grant strategy development, advancing
equitable and measurable improvements that
enhance safety and mobility for all users. He will
bring this dedication to the City of Vernon.

Relevant Experience
• Los Angeles County Vision Zero On-Call
• City of Bell Gardens Safe Streets for All Action
Plan
• City of Fullerton Safe Streets for All Action Plan
• City of Commerce Safe Streets for All Action Plan
and LRSP Update
• City of Los Angeles TOS CC-002 Safe Routes to
School (SRTS) Shatto Place Redesign Quick Build
Project
• City of Los Angeles LADOT Safe Routes to School
Plans for Top 50 Schools with Most Need
FIRM
Lochner

EDUCATION
MA, City and Regional
Planning, University of
California, Berkeley, CA
BA, Geography/
Environmental Studies
and History, University of
California, Los Angeles,
CA

CREDENTIALS
American Institute of
Certified Planners (AICP)
#026845
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APPENDIX A: KEY PERSONNEL RESUMES
Not Part of Page Count
Michael Nilsson
Principal-In-Charge | 22 Years of Experience
Michael Nilsson is a Principal and the Director of
Planning at Lochner. With over 22 years of experience,
he understands how to link land use, environmental,
and mobility policies to create high quality sustainable environments. His project experience includes
roadway safety, active transportation, safe routes to
school, corridor, and complete streets plans, as well
as project funding and implementation. Working with
regional and municipal government agencies, private
developers, nonprofit organizations, and advocacy
organizations, Michael has guided a diverse array
of award-winning, complex, and innovative projects
from vision to reality. Throughout this career, Michael has overseen the implementation of hundreds of
miles of bicycle and trail facilities and secured over
$120 million dollars for transportation planning and
infrastructure improvements.

Relevant Experience
• Chicago Metropolitan Agency (CMAP) for Planning
SS4A Countywide Safety Action Plan
• City of Fullerton Safe Streets for All Action Plan
• City of Commerce Safe Streets for All Action Plan
and LRSP Update
FIRM
Lochner

EDUCATION
BS, Urban and Regional
Planning, California State
Polytechnic University,
Pomona, CA

CREDENTIALS
American Institute of
Certified Planners (AICP),
#01932 | AICP Certified
Transportation Planner
Frank Barrera, RSP1
Collision & Safety Data Analysis Task Lead | 20
Years of Experience
Frank Barrera has 20 years of experience in
transportation planning, he specializes in Safe Routes
to School (SRTS) plans and transportation safety
analysis. Frank has managed and prepared traffic
impact studies, parking studies, circulation and
mobility studies, bikeway improvement projects, and
feasibility studies for public and private developments across Southern California. His expertise includes
bicycle corridor analysis, GIS database development,
and data-driven safety evaluations. Skilled in ArcGIS
mapping, research, and analysis, he develops criteria
and methodologies to assess transportation networks
effectively. He has also led outreach workshops,
coordinating with local jurisdictions and project teams to advance community-focused mobility solutions.

Relevant Experience
• Chicago Metropolitan Agency (CMAP) for Planning
SS4A Countywide Safety Action Plan
• City of Wildomar Systemic Safety Analysis Report
(SSAR)/ Local Roadway Safety Plan (LRSP)/SS4A Plan
FIRM
Lochner

EDUCATION
MSCE, Transportation
Engineering, California
State Polytechnic
University, Pomona, CA
BS, Urban Planning,
California State Polytechnic
University, Pomona, CA

CREDENTIALS
Road Safety Professional 1
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APPENDIX A: KEY PERSONNEL RESUMES
Not Part of Page Count
Philip Burns, AICP
Engagement & Collaboration Task Lead | 12
Years of Experience
Philip Burns is Managing Principal and project
manager at The Arroyo Group. His particular areas of
expertise include land use planning/zoning, housing
policy, and bilingual community engagement. He
also has extensive experience working on and
or managing staff or consultants in the areas of
urban design, transportation (particularly active
transportation and traffic studies), economics,
infrastructure and environmental clearance. Since
2019, Philip has also been leading a multidisciplinary
group providing visioning, feasibility and developer
partnership services for affordable housing on
congregational land. Philip is also a member of the
Mayor’s Housing Task Force as well as the Planning
Commission in Pasadena.

Relevant Experience
• City of Inglewood Transit-Oriented Development Plans
• City of Vernon Mixed-Use Specific Plan
• City of Norwalk Heart of Norwalk Vision/Specific Plan FIRM
The Arroyo Group (TAG)

EDUCATION
BA, Urban Studies, Brown
University, Providence,
Rhode Island, RI
MA, Planning, University
of Southern California, Los
Angeles, CA

CREDENTIALS
American Institute of
Certified Planners (AICP)
Giuseppe Canzonieri, PE
Countermeasure & Implementation Program
Task Lead | 19 Years of Experience
Giuseppe Canzonieri has performed numerous
projects for both public and private developments
throughout Southern California. He has
considerable experience working with roadway
design, traffic signal design, signing & striping
design, traffic control design, construction
specifications and cost estimates. Giuseppe has
served as principal-in-charge, project manager
and project engineer on several civil and traffic
engineering design projects for several Cities
throughout Southern California. He is also known
for his quality control capabilities and providing
clients with high quality construction documents.

Relevant Experience
• City of Commerce Safe Streets for All Action Plan
and LRSP Update
• City of Los Angeles LADOT Safe Routes to School
Plans for Top 50 Schools with Most Need
• City of Downey Safe Routes To School and PS&E
FIRM
Lochner

EDUCATION
BS, Civil Engineering,
California State Polytechnic
University, Pomona, CA

CREDENTIALS
Professional Engineer (PE),
Civil, CA #79006
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APPENDIX A: KEY PERSONNEL RESUMES
Not Part of Page Count
Walter Okitsu, PE, PTP, PTOE, RSP2I
Feasibility Analysis Lead | 44 Years of Experience
Walter Okitsu, PE, PTOE, PTP is a Principal and has
extensive experience in transportation planning and
traffic design. He is responsible over a wide variety
of highway, transit way, and bikeway projects. This
includes designs for traffic signals, street lighting,
signing & striping, worksite traffic control. In this
role, he collaborates with the project managers in
all Lochner’s Southern California office locations to
ensure Lochner delivers high quality products to
our clients. He has field and managerial experience
on traffic impact, feasibility analysis, and circulation projects. He has been instrumental in developing and
implementing Lochner’s QA/QC process while serving
as QA/QC Manager for traffic engineering projects.

Relevant Experience
• City of Commerce Safe Streets for All Action Plan
and LRSP Update
• City of Los Angeles LADOT Safe Routes to School
Plans for Top 50 Schools with Most Need
FIRM
Lochner

EDUCATION
BS, Civil Engineering,
California State University,
Los Angeles, CA
MS, Transportation
Engineering, UC Berkeley, CA
BS, Math-Computer
Science, UCLA, CA

CREDENTIALS
Professional Engineer (PE), CA
Civil #52655 | Traffic #1406
HIlary Mau
Final Action Plan Implementation - Draft Review
& QA/QC | 17 Years of Experience
Hilary Mau has more than 15 years of experience
assisting with and managing transportation
planning project studies for public and private
clients throughout the Southern California region.

Her responsibilities include preparation and
review of transportation impact studies, parking
supply and demand studies, shared parking
analyses, traffic circulation and access studies,
roadway safety studies, Transportation Demand
Management (TDM) Plans, mitigation monitoring
reports, and traffic signal warrant analyses.

Relevant Experience
• City of Commerce Safe Streets for All Action Plan
and LRSP Update
• City of Buellton General Plan Update
• City of Buellton Traffic Impact Analysis (TIA) &
Vehicle Miles Traveled (VMT) Guidelines
• City of Pasadena Short Range Transit Plan
• City of Claremont Local Roadway Safety Plan
FIRM
Lochner

EDUCATION
MS, Urban and Regional
Planning, California State
Polytechnic University,
Pomona, CA
BA, Environmental Studies,
University of California,
Santa Cruz, CA
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APPENDIX B: CERTIFICATIONS & FORMS v
Not Part of Page Count

CERTIFICATIONS & FORMS
This section includes all required forms as requested in the RFP. • Affidavit of Non-Collusion
• Certification Regarding Suspension and Debarment
• Certification Regarding Lobbying (Byrd Anti-Lobbying Amendment) • RFP Form - Bidders List
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APPENDIX B: CERTIFICATIONS & FORMS vi
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March 2013

AFFIDAVIT OF NON-COLLUSION BY CONTRACTOR

STATE OF CALIFORNIA )
) ss

COUNTY OF LOS ANGELES )
_______________________________________________________________, being first duly sworn deposes and says that he/she is ______________________________________________________________________ (Insert "Sole Owner", "Partner", "President, "Secretary", or other proper title) of______________________________________________________________________________________ (Insert name of bidder)
who submits herewith to the City of Vernon a bid/proposal; That all statements of fact in such bid/proposal are true; That such bid/proposal was not made in the interest of or on behalf of any undisclosed person, partnership, company, association, organization or corporation; That such bid/proposal is genuine and not collusive or sham; That said bidder has not, directly or indirectly by agreement, communication or conference with anyone attempted to induce action prejudicial to the interest of the City of Vernon, or of any other bidder or anyone else interested in the proposed contract; and further That prior to the public opening and reading of bids/proposals, said bidder:
a. Did not directly or indirectly, induce or solicit anyone else to submit a false or sham bid/proposal;
b. Did not directly or indirectly, collude, conspire, connive or agree with anyone else that said bidder or anyone else would submit a false or sham bid/proposal, or that anyone should refrain from bidding or withdraw his/her bid/proposal;
c. Did not, in any manner, directly or indirectly seek by agreement, communication or conference with anyone to raise or fix the bid/proposal price of said bidder or of anyone else, or to raise or fix any overhead, profit or cost element of his/her bid/proposal price, or of that of anyone else; d. Did not, directly or indirectly, submit his/her bid/proposal price or any breakdown thereof, or the contents thereof, or divulge information or data relative thereto, to any corporation, partnership, company, association, organization, bid depository, or to any member or agent thereof, or to any individual or group of individuals, except the City of Vernon, or to any person or persons who have a partnership or other financial interest with said bidder in his/her business.

I certify under penalty of perjury that the above information is correct By:______________________________________ Title:________________________________ Date:____________________________________
H.W. Lochner, Inc.

Principal
Michael Nilsson, AICP CTP Principal
10/16/25
Michael Nilsson, AICP CTP
Docusign Envelope ID: 14CA9238-CA4E-4144-83EB-7E3EDC9EDF73 .
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Item 9 Page 51 of 201
APPENDIX C: CONTRACT EXCEPTIONS xviii
Not Part of Page Count

CONTRACT EXCEPTIONS
H.W. Lochner, Inc. (Lochner) acknowledges receipt of the City of Vernon’s Standard Form Services Agreement template. Lochner and our Surety have reviewed the City’s standard PSA and recommend the following revisions in order to be aligned with industry standards. The red strike-through indicates our requested deletions, the blue underline indicates our requested additions, and Lochner’s comments are noted for clarification.

5.0 COMPENSATION AND FEES.

5.1 Contractor has established rates for the City of Vernon which are comparable to and do not exceed the best rates offered to other governmental entities in and around Los Angeles County for the same services. For satisfactory and timely performance of the services, the City will pay Contractor in accordance with the payment schedule set forth in Exhibit “B” attached hereto and incorporated herein by reference.

Note: Lochner will provide comparable rates but cannot guarantee the rates are the “best.”

5.3 Contractor shall, at its sole cost and expense, furnish all necessary and incidental labor, material, supplies, facilities, equipment, and transportation which may be required for furnishing services pursuant to this Agreement. Materials shall be of the highest quality. The above Agreement fee shall include all staff time and all clerical, administrative, overhead, insurance, reproduction, telephone, air travel, auto rental, subsistence, and all related costs and expenses.

Note: Lochner is providing professional services, not supplying materials or building.

5.6 Licenses, Permits, Fees, and Assessments. Contractor shall obtain, at Contractor’s sole cost and expense, such licenses, permits, and approvals as may be required by law for the performance of the services required by this Agreement.

Contractor shall have the sole obligation to pay for any fees, assessments, and taxes, plus applicable penalties and interest, which may be imposed by law and which arise from or are necessary for the performance of the Services by this Agreement.

9.0 INDEMNITY. Contractor agrees to indemnify City, its officers, elected officials, employees and agents against, and will hold and save each of them harmless from, any and all actions, suits, claims, damages to persons or property, losses, costs, penalties, obligations, errors, omissions or liabilities (herein “claims or liabilities”), including but not limited to professional negligence, that may be asserted or claimed by any person, firm or entity arising out of or in connection with the work, operations or activities of Contractor, its agents, employees, subcontractors, .
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Item 9 Page 52 of 201
APPENDIX C: CONTRACT EXCEPTIONS xix
Not Part of Page Count
or invitees, provided for herein, to the extent caused by or arising from the negligent acts or omissions of Contractor hereunder, or arising from Contractor’s performance of or failure to perform breach of any term, provision, covenant or condition of this Agreement, except to the extent such claims or liabilities arise from the gross negligence or willful misconduct of City, its officers, elected officials, agents or employees.

Note: Lochner’s liability should be proportionate to its fault, and the applicable standard for assessing a professional consultant’s compliance with the standard of care is negligence. Statutorily, Lochner cannot be held liable for the negligence of the City. See Sec. 2782.

1.3 OWNERSHIP OF WORK. All documents and materials furnished by the City to Contractor shall remain the property of the City and shall be returned to the City upon termination of this Agreement. Upon payment for the Contractor’s services, all reports, drawings, plans, specifications, computer tapes, floppy disks and printouts, studies, memoranda, computation sheets, and other documents prepared by Contractor in furtherance of the work shall be the sole property of City and shall be delivered to City whenever requested at no additional cost to the City. Contractor shall keep such documents and materials on file and available for audit by the City for at least three (3) years after completion or earlier termination of this Agreement.

Contractor may make duplicate copies of such materials and documents for its own files or for such other purposes as may be authorized in writing by the City.

Note: Ownership should pass upon payment for the applicable services.

1.4 CORRECTION OF WORK. Contractor shall promptly correct any defective, inaccurate or incomplete tasks, deliverables, goods, services and other work that fails to meet the Standard of Care , without additional cost to the City. The performance or acceptance of services furnished by Contractor shall not relieve the Contractor from the obligation to correct subsequently discovered defects, inaccuracy, or incompleteness.

1.5 RESPONSIBILITY FOR ERRORS. Contractor shall be responsible for its work and results under this Agreement. Contractor, when requested, shall furnish clarification and/or explanation as may be required by the City, regarding any services rendered under this Agreement at no additional cost to City. In the event that an error or omission attributable to Contractor occurs, then Contractor shall, at no cost to City, provide all necessary design drawings, estimates and other Contractor professional services necessary to rectify and correct the matter to the sole satisfaction of City comply with the Standard of Care and to participate in any meeting required with regard to the correction.

Note: The standard of care should govern the determination of what is “defective” or “inaccurate.”
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Item 9 Page 53 of 201
APPENDIX C: CONTRACT EXCEPTIONS xx
Not Part of Page Count

1.12 TIME OF ESSENCE. Time is strictly of the essence of this agreement and each and every covenant, term, and provision hereof.

Note: Lochner can agree to provide services in a timely fashion consistent with the standard of care.

1.19 TERMINATION FOR CAUSE. Termination for cause shall relieve the terminating party of further liability or responsibility under this Agreement, including the payment of money, except for payment for services satisfactorily and timely performed prior to the service of the notice of termination, and except for reimbursement of (1) any payments made by the City for service not subsequently performed in a timely and satisfactory manner, and (2) costs incurred by the City in obtaining substitute performance. If this Agreement is terminated as provided herein, City may require, at no additional cost to City, that Contractor provide all finished or unfinished documents, data, and other information of any kind prepared by Contractor in connection with the performance of Services under this Agreement. Contractor shall be required to provide such document and other information within fifteen (15) days of the request. City’s use of any unfinished deliverables shall be at City’s sole risk.

Note: Lochner cannot be held responsible for the use of deliverables that have not been fully completed. Presumably, in the event of termination for cause, the City would have another entity complete the deliverable a set forth in the following provision.

1.20 MAINTENANCE AND INSPECTION OF RECORDS.

The City, or its authorized auditors or representatives, shall have access to and the right to audit and reproduce any of the Contractor’s records to the extent the City deems necessary to insure ensure it is receiving all money to which it is entitled under the Agreement and/or is paying only the amounts to which Contractor is properly entitled under the Agreement or for other purposes relating to the Agreement.

Proposal for City of Vernon Vision Zero Action Plan
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Item 9 Page 54 of 201

SUBMITTED BY
H.W. Lochner, Inc.
1100 Corporate Center Drive, Suite 201
Monterey Park, CA 91754
Contact: Carlos Velasquez, AICP | Project Manager
323.859.3135 | [email protected]
X#26125
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Item 9 Page 55 of 201
H.W. Lochner, Inc.

Services Agreement

______________________

EXHIBIT B

SCHEDULE
Docusign Envelope ID: 14CA9238-CA4E-4144-83EB-7E3EDC9EDF73 .
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Item 9 Page 56 of 201
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➔ Price Proposal for City of Vernon Vision Zero
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Docusign Envelope ID: 14CA9238-CA4E-4144-83EB-7E3EDC9EDF73 .
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Item 9 Page 57 of 201
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Item 9 Page 58 of 201
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Item 9 Page 59 of 201
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Item 9 Page 60 of 201
H.W. Lochner, Inc.

Services Agreement

______________________

EXHIBIT C

FHWA REQUIRED FEDERAL PROVISIONS AND CERTIFICATIONS
Docusign Envelope ID: 14CA9238-CA4E-4144-83EB-7E3EDC9EDF73 .
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Item 9 Page 61 of 201
1 FHWA REQUIRED FEDERAL PROVISIONS AND CERTIFICATIONS

1. Civil Rights Requirements and Equal Employment Opportunity Clause

2. Disadvantaged Business Enterprises (DBE) Provision
a. Note: Reporting requirements for the collection of race and sex-specific ownership is eliminated under the IFR and therefore will not be collected at this time.

3. Sanctions and Penalties for Breach of Contract

4. Termination for Cause and Convenience

5. Rights to Inventions Made Under a Contract or Agreement

6. Clean Air Act / Federal Water Pollution Control Act

7. Energy Efficiency

8. Debarment and Suspension (Certification Required)

9. Byrd Anti-Lobbying Amendment (Certification Required) Required certifications are located at the end of this document. The following requirements apply to all contracts and subcontracts.

1. Civil Rights Requirements and Equal Employment Opportunity Clause

1. Nondiscrimination - In accordance with Title VI of the Civil Rights Act, as amended, 42 U.S.C., 2000d, section 303 of the Age Discrimination Act of 1975, as amended, 42 U.S.C.6102, Section 202 of the Americans with Disabilities Act of 1990, and 42 U.S.C. 12132, the contractor agrees that it will not discriminate against any employee or applicant for employment because of race, color, creed, national origin, sex, age or disability. In addition, the contractor agrees to comply with applicable Federal implementing regulations and other implementing requirements FHWA may issue.

2. Disadvantaged Business Enterprise (DBE) Provision- 49 CFR 26 The project is subject to the DBE Program under 49 CFR Part 26. The USDOT issued an Interim Final Rule, which was effective on October 3, 2025, that introduces important revisions to how DBE goals are managed in federal-aid transportation projects. Under this rule, race- and sex-based presumptions of social and economic disadvantage are removed. Every currently certified DBE/ACDBE will undergo reevaluation. Firms meeting the new IFR standards will be recertified at a later date. Therefore, a DBE contract goal or goals will not be included in this contract. Firms currently certified as DBE firms by the California Unified Certification Program (CUCP) cannot be counted toward DBE contract goals or overall program goals.

Reporting requirements for the collection of race and sex-specific ownership is eliminated under the IFR and therefore will not be collected at this time. Once DBEs have been reevaluated by the CUCP, CITY may later amend this contract to include a DBE Conscious contract goal and require the contractor to report commitments and payments to DBE firms.
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Item 9 Page 62 of 201
2 3. Sanctions and Penalties for Breach of Contract- 2 CFR Part 200 Appendix II (A) Contracts for more than the simplified acquisition threshold, which is the inflation adjusted amount determined by the Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council (Councils) as authorized by 41 U.S.C. 1908, must address administrative, contractual, or legal remedies in instances where contractors violate or breach contract terms, and provide for such sanctions and penalties as appropriate. FHWA does not prescribe the form or content of such provisions. What provisions are developed will depend on the circumstances and the type of contract. Recipients should consult legal counsel in developing appropriate clauses. The following clauses are examples of provisions from various Federal thirdparty contracts.

Disputes - Disputes arising in the performance of this Contract which are not resolved by agreement of the parties shall be decided in writing by the authorized representative of the City. This decision shall be final and conclusive unless within ten (10) days from the date of receipt of its copy, the Contractor mails or otherwise furnishes a written appeal to the City. In connection with any such appeal, the Contractor shall be afforded an opportunity to be heard and to offer evidence in support of its position. The decision of the City shall be binding upon the Contractor and the Contractor shall abide by the decision.

Performance During Dispute – Unless otherwise directed by the City, the Contractor shall continue performance under this Contract while matters in dispute are being resolved.

Claims for Damages - Should either party to the Contract suffer injury or damage to person or property because of any act of omission of the party of any of his employees, agents, or others whose acts it is legally liable, a claim for damages therefore shall be made in writing to such other party within a reasonable time after the first observance of such injury or damage.

Remedies - Unless this Contract provides otherwise, all claims, counterclaims, disputes, and other matters in question between the City and the Contractor arising out of or relating to this agreement or its breach will be decided by arbitration if the parties mutually agree, or in a court of competent jurisdiction within the State in which the City is located.

Rights and Remedies - The duties and responsibilities imposed by the Contract Document and the rights and remedies available thereunder shall be in addition to and not a limitation of any duties, obligations, rights, and remedies otherwise imposed or available by law. No action or failure to act by the City or Contractor shall constitute a waiver of any right of duty afforded any of them under the contract, nor shall any such action or failure to act constitute an approval of or acquiescence in any breach thereunder, except as may be specifically agree in writing. .
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Item 9 Page 63 of 201
3 4. Termination for Cause and Convenience- 2 CFR Part 200 Appendix II (B) All contracts and subcontracts in excess of $10,000 must address termination for cause and for convenience by the non-Federal entity including the manner by which it will be affected and the basis for settlement.

5. Rights to Inventions Made Under a Contract or Agreement- 2 CFR Part 200 Appendix II (F) If the Federal award meets the definition of “funding agreement” under 37 CFR § 401.2 (a) and the recipient or subrecipient wishes to enter into a contract with a small business firm or nonprofit organization regarding the substitution of parties, assignment or performance of experimental, developmental, or research work under that “funding agreement,” the recipient or subrecipient must comply with the requirements of 37 CFR Part 401, “Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts and Cooperative Agreements,” and any implementing regulations issued by the awarding agency.

6. Clean Air Act / Federal Water Pollution Control Act- 2 CFR Part 200 Appendix II (G) Clean Air Act (42 U.S.C. 7401-7671q.) and the Federal Water Pollution Control Act (33 U.S.C. 1251-1387), as amended—Contracts and subgrants of amounts in excess of $150,000 must contain a provision that requires the non-Federal award to agree to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act (42 U.S.C. 7401-7671q) and the Federal Water Pollution Control Act as amended (33 U.S.C. 1251-1387). Violations must be reported to the Federal awarding agency and the Regional Office of the Environmental Protection Agency (EPA).

7. Energy Efficiency- 2 CFR Part 200 Appendix II (H)

The Contractor agrees to comply with mandatory standards and policies relating to energy efficiency which are contained in the state energy conservation plan issued in compliance with the Energy Policy and Conservation Act (42 U.S.C. 6201).

8. Debarment and Suspension- 2 CFR Part 200 Appendix II (I) - (Certification Required) Debarment and Suspension (Executive Orders 12549 and 12689)- A contract award (see 2 CFR 180.220) must not be made to parties listed on the governmentwide Excluded Parties List System in the System for Award Management (SAM), in accordance with the OMB guidelines at 2 CFR 180 that implement Executive Orders 12549 (3 CFR Part 1986 Comp., p. 189) and 12689 (3 CFR Part 1989 Comp., p. 235), “Debarment and Suspension.” The Excluded Parties List System in SAM contains the names of parties debarred, suspended, or otherwise excluded by agencies, as well as parties declared ineligible under statutory or regulatory authority other than Executive Order 12549.

This contract is a covered transaction for the purposes of 49 CFR Part 29. As such, the contractor is required to verify that none of the contractor, its principals, as defined at 49 CFR 29.995, or affiliates, as . defined at 49 CFR 29.905, are excluded, or disqualified as .

Item 9 Page 64 of 201
4 defined at 49 CFR 29.940 and 29.945. The contractor is required to comply with 49 CFR 29, Subpart C and must include the requirement to comply with 49 CFR 29, Subpart C in any lower tier covered transaction it enters.

By signing and submitting its bid or proposal, the bidder or proposer certifies as follows:

The certification in this clause is a material representation of fact relied upon by the City.

If it is later determined that the bidder or proposer knowingly rendered an erroneous certification, in addition to remedies available to the City, the Federal Government may pursue available remedies, including but not limited to suspension and/or debarment.

The bidder or proposer agrees to comply with the requirements of 49 CFR 29, Subpart C while this offer is valid and throughout the period of any contract that may arise from this offer. The bidder or proposer further agrees to include a provision requiring such compliance in its lower tier covered transactions.

9. Byrd Anti-Lobbying Amendment- 2 CFR Part 200 Appendix II (J)- (Certification Required) Byrd Anti-Lobbying Amendment (31 U.S.C. 1352)—Contractors that apply or bid for an award of $100,000 or more must file the required certification. Each tier certifies to the tier above that it will not and has not used Federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any Federal contract, grant or any other award covered by 31 U.S.C. 1352. Each tier must also disclose any lobbying with non-Federal funds that takes place in connection with obtaining any Federal award.

Such disclosures are forwarded from tier to tier, up to the non-Federal award. .
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Item 9 Page 65 of 201
APPENDIX B: CERTIFICATIONS & FORMS vii
Not Part of Page Count
5 Certification for Suspension and Debarment

CERTIFICATION REGARDING DEBARMENT, SUSPENSION,
INELIGIBILITY and VOLUNTARY EXCLUSION

LOWER TIER COVERED TRANSACTION
(To be submitted with all bids exceeding $25,000.)
(1) The prospective lower tier participant (Bidder/Contractor) certifies, by submission of this bid or proposal, that neither it nor its principals is presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this transaction by any Federal department or agency.
(2) The prospective Bidder/Contractor also certifies by submission of this bid or proposal that all subcontractors and suppliers (this requirement flows down to all subcontracts at all levels) are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this transaction by any Federal department or agency.
(3) Where the prospective lower tier participant (Bidder/Contractor) is unable to certify any of the statements in this certification, such prospective participant shall attach an explanation to this bid or proposal.

The lower tier participant (Bidder/Contractor), , certifies or affirms the truthfulness and accuracy of this statement of its certification and disclosure, if any. __________________________ Signature of Contractor's Authorized Official __________________________ Name of Contractor's Authorized Official __________________________ Title of Contractor's Authorized Official ___________________________ Date
Michael Nilsson, AICP CTP
Principal
10/16/25
H.W. Lochner, Inc.

Docusign Envelope ID: 14CA9238-CA4E-4144-83EB-7E3EDC9EDF73 Docusign Envelope ID: 14CA9238-CA4E-4144-83EB-7E3EDC9EDF73 .
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Item 9 Page 66 of 201
APPENDIX B: CERTIFICATIONS & FORMS viii
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5 Certification for Suspension and Debarment

CERTIFICATION REGARDING DEBARMENT, SUSPENSION,
INELIGIBILITY and VOLUNTARY EXCLUSION

LOWER TIER COVERED TRANSACTION
(To be submitted with all bids exceeding $25,000.)
(1) The prospective lower tier participant (Bidder/Contractor) certifies, by submission of this bid or proposal, that neither it nor its principals is presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this transaction by any Federal department or agency.
(2) The prospective Bidder/Contractor also certifies by submission of this bid or proposal that all subcontractors and suppliers (this requirement flows down to all subcontracts at all levels) are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this transaction by any Federal department or agency.
(3) Where the prospective lower tier participant (Bidder/Contractor) is unable to certify any of the statements in this certification, such prospective participant shall attach an explanation to this bid or proposal.

The lower tier participant (Bidder/Contractor), , certifies or affirms the truthfulness and accuracy of this statement of its certification and disclosure, if any. __________________________ Signature of Contractor's Authorized Official __________________________ Name of Contractor's Authorized Official __________________________ Title of Contractor's Authorized Official ___________________________ Date
The Arroyo Group
Philip Burns
Principal
10/14/2025
Docusign Envelope ID: 14CA9238-CA4E-4144-83EB-7E3EDC9EDF73 .
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Item 9 Page 67 of 201
APPENDIX B: CERTIFICATIONS & FORMS ix
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6 Byrd Anti-Lobbying Amendment Certification
Certification for Contracts, Grants, Loans, and Cooperative Agreements (To be submitted with each bid or offer exceeding $100,000) The undersigned [Contractor] certifies, to the best of his or her knowledge and belief, that:
(1) No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of an agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement.
(2) If any funds other than Federal appropriated funds have been paid or will be paid to any person for making lobbying contacts to an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form--LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions [as amended by "Government wide Guidance for New Restrictions on Lobbying," 61 Fed. Reg. 1413 (1/19/96). Note: Language in paragraph (2) herein has been modified in accordance with Section 10 of the Lobbying Disclosure Act of 1995 (P.L. 104-65, to be codified at 2 U.S.C. 1601, et seq .)] (3) The undersigned shall require that the language of this certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly.

This certification is a material representation of the fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by 31, U.S.C. § 1352 (as amended by the Lobbying Disclosure Act of 1995). Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure.
[Note: Pursuant to 31 U.S.C. § 1352(c)(1)-(2)(A), any person who makes a prohibited expenditure or fails to file or amend a required certification or disclosure form shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such expenditure or failure.]
The Contractor, ___________________, certifies or affirms the truthfulness and accuracy of each statement of its certification and disclosure, if any. In addition, the Contractor understands and agrees that the provisions of 31 U.S.C. A 3801, et seq., apply to this certification and disclosure, if any.

H.W. Lochner, Inc.

Docusign Envelope ID: 14CA9238-CA4E-4144-83EB-7E3EDC9EDF73 .
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APPENDIX B: CERTIFICATIONS & FORMS x
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__________________________ Signature of Contractor's Authorized Official __________________________ Name of Contractor's Authorized Official __________________________ Title of Contractor's Authorized Official ___________________________ Date
Michael Nilsson, AICP CTP
Principal
10/16/25
Docusign Envelope ID: 14CA9238-CA4E-4144-83EB-7E3EDC9EDF73 .
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Item 9 Page 69 of 201
APPENDIX B: CERTIFICATIONS & FORMS xi
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6 Byrd Anti-Lobbying Amendment Certification
Certification for Contracts, Grants, Loans, and Cooperative Agreements (To be submitted with each bid or offer exceeding $100,000) The undersigned [Contractor] certifies, to the best of his or her knowledge and belief, that:
(1) No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of an agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement.
(2) If any funds other than Federal appropriated funds have been paid or will be paid to any person for making lobbying contacts to an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form--LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions [as amended by "Government wide Guidance for New Restrictions on Lobbying," 61 Fed. Reg. 1413 (1/19/96). Note: Language in paragraph (2) herein has been modified in accordance with Section 10 of the Lobbying Disclosure Act of 1995 (P.L. 104-65, to be codified at 2 U.S.C. 1601, et seq .)] (3) The undersigned shall require that the language of this certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly.

This certification is a material representation of the fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by 31, U.S.C. § 1352 (as amended by the Lobbying Disclosure Act of 1995). Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure.
[Note: Pursuant to 31 U.S.C. § 1352(c)(1)-(2)(A), any person who makes a prohibited expenditure or fails to file or amend a required certification or disclosure form shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such expenditure or failure.]
The Contractor, ___________________, certifies or affirms the truthfulness and accuracy of each statement of its certification and disclosure, if any. In addition, the Contractor understands and agrees that the provisions of 31 U.S.C. A 3801, et seq., apply to this certification and disclosure, if any.

The Arroyo Group
Docusign Envelope ID: 14CA9238-CA4E-4144-83EB-7E3EDC9EDF73 .
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APPENDIX B: CERTIFICATIONS & FORMS xii
Not Part of Page Count
7 __________________________ Signature of Contractor's Authorized Official __________________________ Name of Contractor's Authorized Official __________________________ Title of Contractor's Authorized Official ___________________________ Date
Philip Burns
Principal
10/14/2025
Docusign Envelope ID: 14CA9238-CA4E-4144-83EB-7E3EDC9EDF73 .
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Item 9 Page 71 of 201
City Council Agenda Report
Meeting Date: March 3, 2026
From: Todd Dusenberry, General Manager of Public Utilities Department: Public Utilities
Submitted by: Adriana Ramos, Principal Management Analyst Subject
Services Agreement with NewGen Strategies and Solutions, LLC Recommendation
Approve and authorize the City Administrator to execute a Services Agreement with NewGen Strategies and Solutions, LLC, in substantially the same form as submitted, to provide financial and technical review of Southern California Edison transmission rate and wholesale revenue requirement services for a total amount not-to-exceed $32,500, for a three-year term.

Background
Southern California Edison (SCE) recently completed a rate refresh analysis for Vernon’s current load. The Wholesale Distribution Charge to Vernon Public Utilities (VPU), which has remained unchanged since 1998, is proposed to increase from $265,776 to $3,377,604 annually based on SCE’s analysis and VPU’s current load. Additionally, SCE indicated that incremental data center load will require further rate adjustments, subject to ongoing review and discussion.

The Wholesale Distribution Charge calculation involves several complex elements, including identification of the service path, load ratio, plant costs, revenue requirements, and allocations based on load share. Since the charges to VPU depend on SCE’s calculations, an independent technical and financial review is necessary to ensure that the charges assigned to VPU are accurate, reasonable, and appropriate. This review requires specialized technical, financial, and regulatory expertise, as well as the potential need to prepare or support a rate filing protest before the Federal Energy Regulatory Commission (FERC).

In compliance with Vernon Municipal Code (VMC) Section 3.32.080, on January 15, 2026, staff issued a request for Proposals (RFP) for Financial and Technical Review of SCE Transmission Rate and Wholesale Revenue Requirements. The RFP was advertised on the City’s Planet Bids platform. The scope of services includes a comprehensive financial and technical review of SCE’s transmission rate requirement and wholesale rate requirements, including service path, load ratio, plant costs, cost allocations, and other related components that impact charges to VPU.

A proposal package was received by only one firm by the January 26, 2026 deadline. A qualified panel thoroughly evaluated the proposal based on professional qualifications (40%), cost and fees (30%), references (20%), and responsiveness to the RFP (10%). Based on the evaluation process, the proposal submitted by NewGen Strategies and Solutions, LLC (NewGen) demonstrated a combination of expertise, understanding, experience, and a comprehensive approach that meets the scope of services detailed in the RFP. NewGen currently provides utility cost of service, rate design, and financial planning services for VPU and performs such tasks to the City’s satisfaction.

VPU staff recommends that the City Council approve a Services Agreement with NewGen to provide a Financial and Technical Review of the SCE Transmission Rate and Wholesale Revenue Requirement services for a total amount not-to-exceed $32,500 over a term of three .
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Item 10 Page 1 of 262
years. City Council approval is required pursuant to VMC Section 3.32.030(B) if, in the 12 months preceding the effective date of the proposed new, renewed, or otherwise amended contract, the City has paid or awarded the proposed vendor more than $100,000. With the approval of this Services Agreement, the total value of contract awards to NewGen will be $431,900.

The proposed Services Agreement has been reviewed and approved as to form by the City Attorney’s Office.

Fiscal Impact
The fiscal impact is not to exceed $32,500. Sufficient funds are available in the Electric Fund, Administration, Professional Services-Other, Account No. 055-050-580-529215 for the current year and sufficient funds will be budgeted in subsequent years.

Attachments

1. Services Agreement with NewGen Strategies and Solutions, LLC .
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Item 10 Page 2 of 262

SERVICES AGREEMENT BETWEEN THE CITY OF VERNON AND NEWGEN

STRATEGIES AND SOLUTIONS, LLC FOR FINANCIAL AND TECHNICAL REVIEW

OF SOUTHERN CALIFORNIA EDISON (SCE) TRANSMISSION RATE AND

WHOLESALE REVENUE REQUIREMENTS

COVER PAGE
Contractor: NewGen Strategies and Solutions, LLC
Responsible Principal of Contractor: Tony Georgis, Partner & Managing Director - Energy
Notice Information - Contractor: NewGen Strategies and Solutions, LLC 225 Union Boulevard, Suite 450
Lakewood, CO 80228
Attention: Tony Georgis, Partner &
Managing Director - Energy
Telephone: (720) 633-9514
Notice Information - City: City of Vernon
4305 Santa Fe Avenue
Vernon, CA 90058
Attention: Todd Dusenberry,
General Manager
Telephone: (323) 583-8811 ext. 579
Commencement Date: March 3, 2026
Termination Date: March 2, 2029
Consideration: Total not to exceed $32,500 (includes all applicable sales tax); and more
particularly described in Exhibit B
Records Retention Period Three (3) years, pursuant to Section

11.20 







  

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NewGen Strategies and Solutions, LLC
Services Agreement

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SERVICES AGREEMENT BETWEEN THE CITY OF VERNON AND NEWGEN

STRATEGIES AND SOLUTIONS, LLC FOR FINANCIAL AND TECHNICAL REVIEW

OF SOUTHERN CALIFORNIA EDISON (SCE) TRANSMISSION RATE AND

WHOLESALE REVENUE REQUIREMENTS
This Agreement is made between the City of Vernon, a California charter City and California municipal corporation (“City”), and NewGen Strategies and Solutions, LLC, a Colorado limited liability company (“Contractor”).

The City and Contractor agree as follows:

1.0 EMPLOYMENT OF CONTRACTOR. City agrees to engage Contractor to perform the services as hereinafter set forth.

2.0 SCOPE OF SERVICES.

2.1 Contractor shall perform all work necessary to complete the services set forth in the City’s Request for Proposals issued on or about January 15, 2026, and titled RFP for Financial and Technical Review of Southern California Edison (SCE) Transmission Rate and Wholesale Revenue Requirements, and Contractor's proposal to the City ("Proposal") dated January 26, 2026, Exhibit “A”, a copy which is attached to and incorporated into this Agreement by reference.

2.2 All services shall be performed to the satisfaction of City.

2.3 All services shall be performed in a competent, professional, and satisfactory manner in accordance with the prevailing industry standards for such services.

3.0 PERSONNEL.

3.1 Contractor represents that it employs, or will employ, at its own expense, all personnel required to perform the services under this Agreement.

3.2 Contractor shall not subcontract any services to be performed by it under this Agreement without prior written approval of City.

3.3 All of the services required hereunder will be performed by Contractor or by City approved subcontractors. Contractor, and all personnel engaged in the work, shall be fully qualified and authorized or permitted under State and local law to perform such services and shall be subject to approval by the City. 







  

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NewGen Strategies and Solutions, LLC
Services Agreement

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4.0 TERM. The term of this Agreement shall commence on March 3, 2026, and it shall continue until March 2, 2029, unless terminated at an earlier date pursuant to the provisions thereof.

5.0 COMPENSATION AND FEES.

5.1 Contractor has established rates for the City of Vernon which are comparable to and do not exceed the best rates offered to other governmental entities in and around Los Angeles County for the same services. For satisfactory and timely performance of the services, the City will pay Contractor in accordance with the payment schedule set forth in Exhibit “B” attached hereto and incorporated herein by reference.

5.2 Contractor's grand total compensation for the entire term of this Agreement, shall not exceed $32,500 without the prior authorization of the City, as appropriate, and written amendment of this Agreement.

5.3 Contractor shall, at its sole cost and expense, furnish all necessary and incidental labor, material, supplies, facilities, equipment, and transportation which may be required for furnishing services pursuant to this Agreement. Materials shall be of the highest quality. The above Agreement fee shall include all staff time and all clerical, administrative, overhead, insurance, reproduction, telephone, air travel, auto rental, subsistence, and all related costs and expenses.

5.4 City shall reimburse Contractor only for those costs or expenses specifically approved in this Agreement, or specifically approved in writing in advance by City. Unless otherwise approved, such costs shall be limited and include nothing more than the following costs incurred by Contractor:

5.4.1 The actual costs of subcontractors for performance of any of the services that Contractor agrees to render pursuant to this Agreement, which have been approved in advance by City and awarded in accordance with this Agreement.

5.4.2 Approved reproduction charges.

5.4.3 Actual costs and/or other costs and/or payments specifically authorized in advance in writing and incurred by Contractor in the performance of this Agreement.








  

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Services Agreement

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5.5 Contractor shall not receive any compensation for extra work performed without the prior written authorization of City. As used herein, “extra work” means any work that is determined by City to be necessary for the proper completion of the Project, but which is not included within the Scope of Services and which the parties did not reasonably anticipate would be necessary at the time of execution of this Agreement. Compensation for any authorized extra work shall be paid in accordance with the payment schedule as set forth in Exhibit “B,” if the extra work has been approved by the City.

5.6 Licenses, Permits, Fees, and Assessments. Contractor shall obtain, at Contractor’s sole cost and expense, such licenses, permits, and approvals as may be required by law for the performance of the services required by this Agreement.

Contractor shall have the sole obligation to pay for any fees, assessments, and taxes, plus applicable penalties and interest, which may be imposed by law and which arise from or are necessary for the performance of the Services by this Agreement.

6.0 PAYMENT.

6.1 As scheduled services are completed, Contractor shall submit to the City an invoice for the services completed, authorized expenses, and authorized extra work actually performed or incurred according to said schedule.

6.2 Each such invoice shall state the basis for the amount invoiced, including a detailed description of the services completed, the number of hours spent, reimbursable expenses incurred and any extra work performed.

6.3 Contractor shall also submit a progress report with each invoice that describes in reasonable detail the services and the extra work, if any, performed in the immediately preceding calendar month.

6.4 Contractor understands and agrees that invoices which lack sufficient detail to measure performance will be returned and not processed for payment.

6.5 City will pay Contractor the amount invoiced within thirty (30) days after the City approves the invoice.

6.6 Payment of such invoices shall be payment in full for all services, 







  

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Services Agreement

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authorized costs, and authorized extra work covered by that invoice.

7.0 CITY'S RESPONSIBILITY. City shall cooperate with Contractor as may be reasonably necessary for Contractor to perform its services; and will give any required decisions as promptly as practicable so as to avoid unreasonable delay in the progress of Contractor's services.

8.0 COORDINATION OF SERVICES. Contractor agrees to work closely with City staff in the performance of Services and shall be available to City’s staff, consultants, and other staff at all reasonable times.

9.0 INDEMNITY. Contractor agrees to indemnify City, its officers, elected officials, employees and agents against, and will hold and save each of them harmless from, any and all actions, suits, claims, damages to persons or property, losses, costs, penalties, obligations, errors, omissions or liabilities (herein “claims or liabilities”), including but not limited to professional negligence, that may be asserted or claimed by any person, firm or entity arising out of or in connection with the work, operations or activities of Contractor, its agents, employees, subcontractors, or invitees, provided for herein, or arising from the acts or omissions of Contractor hereunder, or arising from Contractor’s performance of or failure to perform any term, provision, covenant or condition of this Agreement, except to the extent such claims or liabilities arise from the gross negligence or willful misconduct of City, its officers, elected officials, agents or employees.

10.0 INSURANCE. Contractor shall procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damage to property that may arise from or in connection with the performance of the work hereunder by the Contractor, its agents, representative, or employees. The policies shall state that they afford primary coverage.

10.1 Automobile Liability Insurance – Primary insurance coverage shall be written on ISO Business Auto coverage form for all owned, hired, and non-owned automobiles or any auto. The policy shall have a combined single limit of not less than one million dollars ($1,000,000). If Contractor is transporting one or more nonemployee passengers in the performance of the services, the automobile liability policy 







  

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Services Agreement

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shall have a combined single limit of two million dollars ($2,000,000). If Contractor owns no autos, a hired, non-owned auto endorsement to the General Liability policy is acceptable.

10.1.1 Contractor agrees to subrogate automobile liability resulting from performance under this agreement by agreeing to defend, indemnify, and hold harmless, the City, and its respective employees, agents, and City Council from and against all claims, liabilities, suits, losses, damages, injuries and expenses, including all costs and reasonable attorney’s fees (“Claims”), which are attributable to any act or omission by the Contractor under the performance of the services. The City of Vernon, its directors, commissioners, officers, employees, agents, and volunteers must be endorsed on the policy as additional insureds and, under the Contractors’ policy, there shall be a waiver of subrogation, and the policy shall be primary and non-contributory and will not seek contribution from the City’s insurance.

10.2 Commercial General Liability Insurance – Contractor shall carry General Liability Insurance covering all operations performed by or on behalf of the Contractor providing coverage for bodily injury and property damage with a single limit of not less than one million dollars ($1,000,000) per occurrence and two million dollars ($2,000,000) general aggregate limit written on an Insurance Services Office (ISO) Comprehensive General Liability "occurrence" Form CG 00 01 or its equivalent for coverage on an occurrence basis. The City of Vernon, its directors, commissioners, officers, employees, agents, and volunteers must be endorsed on the policy as additional insureds with respect to liability arising out of the Contractor's performance of this Agreement. The additional insured coverage under the Contractor’s policy shall be primary and non-contributory and will not seek contribution from the City’s insurance.

The policy shall be endorsed to include a waiver of subrogation.

10.2.1 If Contractor intends to employ other contractors as part of the services rendered, the City must approve and will establish the 







  

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appropriate insurance requirements.

10.2.2 Contractor agrees to subrogate General Liability resulting from performance under this agreement by agreeing to defend, indemnify, and hold harmless, the City, and its respective employees, agents, and City Council from and against all claims, liabilities, suits, losses, damages, injuries and expenses, including all costs and reasonable attorney’s fees (“Claims”), which are attributable to any act or omission by the Contractor under the performance of the services.

10.3 Professional Errors and Omissions insurance covering claims arising from negligent acts, errors, or omissions in the performance of professional services.

Coverage in a sum of not less than two million dollars ($2,000,000) per claim and aggregate. Coverage shall apply to financial advisory services, regulatory consulting, utility rate and cost allocation analysis, engineering and technical consulting, and FERC advisory services, as applicable to the scope of work. Applicable aggregate must be identified and claims history provided to determine amounts remaining under the aggregates. Contractor shall maintain such coverage for a minimum of three (3) years following completion of services, either through continued coverage or an extended reporting period.

10.4 Umbrella Liability Insurance – An umbrella (over primary) may be used to comply with limits or other primary coverage requirements. When used, the umbrella policy shall apply to bodily injury/property damage and personal injury/advertising injury and shall include a “dropdown” provision providing primary coverage for any liability not covered by the primary policy. The umbrella policy shall have no additional exclusion or coverage difference from the primary policy. The coverage shall also apply to automobile liability.

10.5 Workers’ Compensation/Employers Liability - Contractor shall comply with the applicable sections of the California Labor Code concerning workers' compensation for injuries on the job. Compliance is accomplished in one of the following manners:

10.5.1 Provide a copy of the permissive self-insurance certificate approved 







  

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by the State of California; or

10.5.2 Secure and maintain in force a policy of workers' compensation insurance with statutory limits and Employer's Liability Insurance with a limit of one million dollars ($1,000,000) per accident. The policy shall be endorsed to waive all rights of subrogation against City, its directors, commissioners, officers, employees, and volunteers for losses arising from performance of this Agreement or

10.5.3 If Contractor has no employees, it may certify or warrant to the City that it does not currently have any employees or individuals who are defined as “employees” under the Labor Code, and the requirement for Workers’ Compensation coverage will be waived by completing the waiver form provided by the City.

10.6 If Contractor maintains broader coverage and/or higher limits than the minimums shown above, City requires and shall be entitled to the broader coverage and/or the higher limits maintained by the Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.

10.7 Each insurance policy included in this clause shall be endorsed to state that coverage shall not be cancelled except after thirty (30) days prior written notice to City.

10.8 Insurance shall be placed with insurers with an A.M. Best rating of no less than A-VIII. Any self-insured retention or deductible in excess of $25,000 must be approved in advance by the City. Any policies written on a claims-based basis must include a minimum of a 3-year tail.

10.9 Prior to the commencement of performance, Contractor shall furnish City with a certificate of insurance for each policy. Each certificate is to be signed by a person authorized by that insurer to evidence coverage on its behalf. The certificate(s) must be in a form approved by City. City may require complete, certified copies of any or all policies upon request.








  

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10.10 Failure to maintain required insurance at all times shall constitute a default and material breach. In such event, Contractor shall immediately notify City and cease all performance under this Agreement until further directed by the City. In the absence of satisfactory insurance coverage, City may, at its option: (a) procure insurance with collection rights for premiums, attorney's fees, and costs against Contractor by way of set-off or recoupment from sums due to Contractor, at City's option; (b) immediately terminate this Agreement and seek damages from the Agreement resulting from said breach; or (c) self-insure the risk, with all damages and costs incurred, by judgment, settlement or otherwise, including attorney's fees and costs, being collectible from Contractor, by way of set-off or recoupment from any sums due to Contractor.

11.0 GENERAL TERMS AND CONDITIONS.

11.1 INDEPENDENT CONTRACTOR.

11.1.1 It is understood that in the performance of the services herein provided for, Contractor shall be, and is, an independent contractor, and is not an agent, officer or employee of City and shall furnish such services in its own manner and method except as required by this Agreement, or any applicable statute, rule, or regulation. Further, Contractor has and shall retain the right to exercise full control over the employment, direction, compensation and discharge of all persons employed by Contractor in the performance of the services hereunder. City assumes no liability for Contractor’s actions and performance, nor assumes responsibility for taxes, bonds, payments, or other commitments, implied or explicit, by or for Contractor. Contractor shall be solely responsible for, and shall indemnify, defend and save City harmless from all matters relating to the payment of its employees, subcontractors and independent contractors, including compliance with social security, withholding and all other wages, salaries, benefits, taxes, exactions, and regulations of any nature whatsoever.

11.1.2 Contractor acknowledges that Contractor and any
subcontractors, agents or employees employed by Contractor shall not, under any circumstances, be considered employees of the City, and that they shall not be entitled to any of the benefits or rights afforded employees of City, including, but not limited to, 







  

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sick leave, vacation leave, holiday pay, Public Employees Retirement System benefits, or health, life, dental, long-term disability or workers' compensation insurance benefits.

11.2 CONTRACTOR NOT AGENT. Except as the City may authorize in writing, Contractor and its subcontractors shall have no authority, express or implied, to act on behalf of or bind the City in any capacity whatsoever as agents or otherwise.

11.3 OWNERSHIP OF WORK. All documents and materials furnished by the City to Contractor shall remain the property of the City and shall be returned to the City upon termination of this Agreement. All reports, drawings, plans, specifications, computer tapes, floppy disks and printouts, studies, memoranda, computation sheets, and other documents prepared by Contractor in furtherance of the work shall be the sole property of City and shall be delivered to City whenever requested at no additional cost to the City. Contractor shall keep such documents and materials on file and available for audit by the City for at least three (3) years after completion or earlier termination of this Agreement. Contractor may make duplicate copies of such materials and documents for its own files or for such other purposes as may be authorized in writing by the City.

11.4 CORRECTION OF WORK. Contractor shall promptly correct any defective, inaccurate or incomplete tasks, deliverables, goods, services and other work, without additional cost to the City. The performance or acceptance of services furnished by Contractor shall not relieve the Contractor from the obligation to correct subsequently discovered defects, inaccuracy, or incompleteness.

11.5 RESPONSIBILITY FOR ERRORS. Contractor shall be responsible for its work and results under this Agreement. Contractor, when requested, shall furnish clarification and/or explanation as may be required by the City, regarding any services rendered under this Agreement at no additional cost to City. In the event that an error or omission attributable to Contractor occurs, then Contractor shall, at no cost to City, provide all necessary design drawings, estimates and other Contractor professional services necessary to rectify and correct the matter to the sole satisfaction of City and to participate in any meeting required with regard to the correction. 







  

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11.6 WAIVER. The City's waiver of any term, condition, breach, or default of this Agreement shall not be considered to be a waiver of any other term, condition, default or breach, nor of a subsequent breach of the one waived. The delay or failure of either party at any time to require performance or compliance by the other of any of its obligations or agreements shall in no way be deemed a waiver of those rights to require such performance or compliance. No waiver of any provision of this Agreement shall be effective unless in writing and executed by a duly authorized representative of the party against whom enforcement of a waiver is sought.

11.7 SUCCESSORS. This Agreement shall inure to the benefit of, and shall be binding upon, the parties hereto and their respective heirs, successors, and/or assigns.

11.8 NO ASSIGNMENT. Contractor shall not assign or transfer this Agreement or any rights hereunder without the prior written consent of the City and approval by the City Attorney, which may be withheld in the City's sole discretion. Any unauthorized assignment or transfer shall be null and void and shall constitute a material breach by the Contractor of its obligations under this Agreement. No assignment shall release the original parties from their obligations or otherwise constitute a novation.

11.9 COMPLIANCE WITH LAWS. Contractor shall comply with all Federal, State, County and City laws, ordinances, rules and regulations, which are, as amended from time to time, incorporated herein and applicable to the performance hereof. Violation of any law material to performance of this Agreement shall entitle the City to terminate the Agreement and otherwise pursue its remedies. Further, if the Contractor performs any work knowing it to be contrary to such laws, rules, and regulations Contractor shall be solely responsible for all costs arising therefrom.

11.10 ATTORNEY'S FEES. If any action at law or in equity is brought to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorney's fees, costs, and necessary disbursements in addition to any other relief to which such party may be entitled.

11.11 INTERPRETATION.








  

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11.11.1 Applicable Law. This Agreement shall be deemed an agreement and shall be governed by and construed in accordance with the laws of the State of California. Contractor agrees that the State and Federal courts which sit in the State of California shall have exclusive jurisdiction over all controversies and disputes arising hereunder, and submits to the jurisdiction thereof.

11.11.2 Entire Agreement. This Agreement, including any exhibits attached hereto, constitutes the entire agreement and understanding between the parties regarding its subject matter and supersedes all prior or contemporaneous negotiations, representations, understandings, correspondence, documentation, and agreements (written or oral).

11.11.3 Written Amendment. This Agreement may only be
changed by written amendment executed by Contractor and the City Administrator or other authorized representative of the City, subject to any requisite authorization by the City Council. Any oral representations or modifications concerning this Agreement shall be of no force or effect.

11.11.4 Severability. If any provision in this Agreement is held by any court of competent jurisdiction to be invalid, illegal, void, or unenforceable, such portion shall be deemed severed from this Agreement, and the remaining provisions shall nevertheless continue in full force and effect as fully as though such invalid, illegal, or unenforceable portion had never been part of this Agreement.

11.11.5 Order of Precedence. In case of conflict between the terms of this Agreement and the terms contained in any document attached as an Exhibit or otherwise incorporated by reference, the terms of this Agreement shall strictly prevail. The terms of the City’s Request for Proposals shall control over the Contractor’s Proposal.

11.11.6 Construction. In the event an ambiguity or question of intent or interpretation arises with respect to this Agreement, this Agreement shall be construed as if drafted jointly by the parties and in accordance with its fair meaning.

There shall be no presumption or burden of proof favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement. 







  

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11.12 TIME OF ESSENCE. Time is strictly of the essence of this agreement and each and every covenant, term, and provision hereof.

11.13 AUTHORITY OF CONTRACTOR. The Contractor hereby
represents and warrants to the City that the Contractor has the right, power, legal capacity, and authority to enter into and perform its obligations under this Agreement, and its execution of this Agreement has been duly authorized.

11.14 ARBITRATION OF DISPUTES. Any dispute for under $25,000 arising out of or relating to the negotiation, construction, performance, non-performance, breach, or any other aspect of this Agreement, shall be settled by binding arbitration in accordance with the Commercial Rules of the American Arbitration Association at Los Angeles, California and judgment upon the award rendered by the Arbitrators may be entered in any court having jurisdiction thereof. The City does not waive its right to object to the timeliness or sufficiency of any claim filed or required to be filed against the City and reserves the right to conduct full discovery.

11.15 NOTICES. Any notice or demand to be given by one party to the other must be given in writing and by personal delivery or prepaid first-class, registered or certified mail, addressed as follows. Notice simply to the City of Vernon or any other City department is not adequate notice.

If to the City:

City of Vernon
Attention: Todd Dusenberry, General Manager
4305 Santa Fe Avenue
Vernon, CA 90058
If to the Contractor:

NewGen Strategies and Solutions, LLC
Attention: Tony Georgis, Partner & Managing Director - Energy 225 Union Boulevard, Suite 450
Lakewood, CO 80228
Any such notice shall be deemed to have been given upon delivery, if personally delivered, or, if mailed, upon receipt, or upon expiration of three (3) business days from the date of posting, whichever is earlier. Either party may change the address 







  

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at which it desires to receive notice upon giving written notice of such request to the other party.

11.16 NO THIRD PARTY RIGHTS. This Agreement is entered into for the sole benefit of City and Contractor and no other parties are intended to be direct or incidental beneficiaries of this Agreement and no third party shall have any right or remedy in, under, or to this Agreement.

11.17 TERMINATION FOR CONVENIENCE (Without Cause). City may terminate this Agreement in whole or in part at any time, for any cause or without cause, upon fifteen (15) calendar days' written notice to Contractor. If the Agreement is thus terminated by City for reasons other than Contractor's failure to perform its obligations, City shall pay Contractor a prorated amount based on the services satisfactorily completed and accepted prior to the effective date of termination. Such payment shall be Contractor's exclusive remedy for termination without cause.

11.18 DEFAULT. In the event either party materially defaults in its obligations hereunder, the other party may declare a default and terminate this Agreement by written notice to the defaulting party. The notice shall specify the basis for the default. The Agreement shall terminate unless such default is cured before the effective date of termination stated in such notice, which date shall be no sooner than ten (10) days after the date of the notice. In case of default by Contractor, the City reserves the right to procure the goods or services from other sources and to hold the Contractor responsible for any excess costs occasioned to the City thereby. Contractor shall not be held accountable for additional costs incurred due to delay or default as a result of Force Majeure. Contractor must notify the City immediately upon knowing that non-performance or delay will apply to this Agreement as a result of Force Majeure. At that time Contractor is to submit in writing a Recovery Plan for this Agreement. If the Recovery Plan is not acceptable to the City or not received within 10 days of the necessary notification of Force Majeure default, then the City may cancel this order in its entirety at no cost to the City, owing only for goods and services completed to that point.








  

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Item 10 Page 16 of 262
NewGen Strategies and Solutions, LLC
Services Agreement

______________________

11.19 TERMINATION FOR CAUSE. Termination for cause shall relieve the terminating party of further liability or responsibility under this Agreement, including the payment of money, except for payment for services satisfactorily and timely performed prior to the service of the notice of termination, and except for reimbursement of (1) any payments made by the City for service not subsequently performed in a timely and satisfactory manner, and (2) costs incurred by the City in obtaining substitute performance. If this Agreement is terminated as provided herein, City may require, at no additional cost to City, that Contractor provide all finished or unfinished documents, data, and other information of any kind prepared by Contractor in connection with the performance of Services under this Agreement. Contractor shall be required to provide such document and other information within fifteen (15) days of the request.

11.19.1 Additional Services. In the event this Agreement is terminated in whole or in part as provided herein, City may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated.

11.20 MAINTENANCE AND INSPECTION OF RECORDS.

The City, or its authorized auditors or representatives, shall have access to and the right to audit and reproduce any of the Contractor's records to the extent the City deems necessary to insure it is receiving all money to which it is entitled under the Agreement and/or is paying only the amounts to which Contractor is properly entitled under the Agreement or for other purposes relating to the Agreement.

The Contractor shall maintain and preserve all such records for a period of at least three (3) years after termination of the Agreement.

The Contractor shall maintain all such records in the City of Vernon.

If not, the Contractor shall, upon request, promptly deliver the records to the City of Vernon or reimburse the City for all reasonable and extra costs incurred in conducting the audit at a location other than the City of Vernon, including, but not limited to, such additional (out of the City) expenses for personnel, salaries, private auditors, travel, lodging, meals, and overhead.








  

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Item 10 Page 17 of 262
NewGen Strategies and Solutions, LLC
Services Agreement

______________________

11.21 CONFLICT. Contractor hereby represents, warrants, and certifies that no member, officer, or employee of the Contractor is a director, officer, or employee of the City of Vernon, or a member of any of its boards, commissions, or committees, except to the extent permitted by law.

11.22 HEADINGS. Paragraphs and subparagraph headings contained in this Agreement are included solely for convenience and are not intended to modify, explain or to be a full or accurate description of the content thereof and shall not in any way affect the meaning or interpretation of this Agreement.

11.23 ENFORCEMENT OF WAGE AND HOUR LAWS. Eight hours labor constitutes a legal day's work. The Contractor, or subcontractor, if any, shall forfeit twenty-five dollars ($25) for each worker employed in the execution of this Agreement by the respective Contractor or subcontractor for each calendar day during which the worker is required or permitted to work more than 8 hours in any one calendar day and 40 hours in any one calendar week in violation of the provisions of Sections 1810 through 1815 of the California Labor Code as a penalty paid to the City; provided, however, work performed by employees of contractors in excess of 8 hours per day, and 40 hours during any one week, shall be permitted upon compensation for all hours worked in excess of 8 hours per day at not less than 1½ times the basic rate of pay.

11.24 EQUAL EMPLOYMENT OPPORTUNITY PRACTICES. Contractor certifies and represents that, during the performance of this Agreement, it and any other parties with whom it may subcontract shall adhere to equal employment opportunity practices to assure that applicants, employees and recipients of service are treated equally and are not discriminated against because of their race, religion, color, national origin, ancestry, disability, sex, age, medical condition, sexual orientation or marital status. Contractor further certifies that it will not maintain any segregated facilities.

Contractor further agrees to comply with The Equal Employment Opportunity Practices provisions as set forth in Exhibit “C”.
[Signatures Begin on Next Page].








  

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Item 10 Page 18 of 262
NewGen Strategies and Solutions, LLC
Services Agreement

______________________

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Commencement Date stated on the cover page.

City of Vernon, a California charter City
and California municipal corporation
By: ____________________________
Brian Saeki, City Administrator

NewGen Strategies and Solutions, LLC, a
Colorado limited liability company
By:

Name:

Title:

ATTEST:
_______________________________
Genoveva Rocha, City Clerk
By:

Name:

Title:

APPROVED AS TO FORM:
_______________________________
Zaynah Moussa-Milward,
City Attorney








  

 



















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Item 10 Page 19 of 262

SECOND AMENDED AND RESTATED OPERATING AGREEMENT
OF JUNE 1, 2019

NEWGEN STRATEGIES AND SOLUTIONS, LLC

A COLORADO LIMITED LIABILITY COMPANY

THE INTERESTS DESCRIBED AND REPRESENTED BY THIS OPERATING AGREEMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “ACT”) OR ANY APPLICABLE STATE SECURITIES LAWS (“STATE ACTS”) AND ARE RESTRICTED SECURITIES AS THAT TERM IS DEFINED IN RULE 144 UNDER THE ACT.

THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD OR OTHERWISE

TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT

OR QUALIFICATION UNDER THE ACT AND APPLICABLE STATE ACTS OR PURSUANT

TO AN EXEMPTION FROM REGISTRATION UNDER THE ACT AND APPLICABLE

STATE ACTS, THE AVAILABILITY OF WHICH MUST BE ESTABLISHED TO THE SATISFACTION OF THE COMPANY.
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Item 10 Page 20 of 262
15 9.7 Signing Authority of Officers. Subject to any restrictions imposed by the Board, any Officer, acting alone, is authorized to endorse checks, drafts and other evidences of indebtedness made payable to the order of the Company, but only for the purpose of deposit into the Company's accounts. Subject to the terms of bank resolutions, if any, adopted by the Board with respect to each Company disbursement account, all checks, drafts or other instruments obligating the Company to pay money, and any other contracts and obligations of the Company, shall be signed on behalf of the Company by a Manager or in accordance with other signing authority established by Board resolution.

9.8 Compensation. Unless otherwise agreed by the Members holding a Majority in Interest, a Manager or Officer is not entitled to compensation from the Company for his services as Manager or Officer. However, a Manager or Officer is entitled to reimbursement from the Company for all expenses reasonably incurred in performing his duties as a Manager.

9.9 Partnership Representative.
(A) The President/CEO, Chief Financial Officer, or another Manager appointed by the Board, shall serve as the Company’s Partnership Representative (“Partnership Representative”) as provided in Code Section 6223(a) (as amended by the Bipartisan Budget Act of 2015 [the “BBA”]). The Partnership Representative shall resign at any time that he resigns as Manager of the Company. In such event, the newly elected Chairman of the Board, shall serve as the Company’s Partnership Representative.
(B) The Company’s Partnership Representative is authorized and required to represent the Company (at the Company’s expense) in connection with all examinations of the Company’s affairs by the Internal Revenue Service or any state Taxing Authority (collectively, the “Taxing Authorities”), including resulting administrative and judicial proceedings, and to expend Company funds for professional services and costs associated therewith. The Partnership Representative shall have the sole authority to act on behalf of the Company in any examinations and any resulting administrative or judicial proceedings and shall have sole discretion to determine whether the Company (either on its own behalf or on behalf of its Members) will contest or continue to contest any tax deficiencies assessed or proposed to be assessed by any Taxing Authority. The Partnership Representative promptly shall notify the Members if any tax return of the Company is audited and of the receipt of a notice of final Partnership Adjustment. The Partnership Representative shall not extend the statute of limitations, file a request for administrative adjustment, file suit relating to any statute of limitations, file a request for administrative adjustment, file suit related to any Company tax refund or deficiency, or enter into any settlement agreement related to the items of income gain, loss or deduction of the Company with any Taxing Authority without the consent of a Super Majority in Interests.
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Item 10 Page 21 of 262
NewGen Strategies and Solutions, LLC
Board Resolution No. 1 - 2021
Concerning Signature Authority
Pursuant to the Second Amended and Restated Operating Agreement dated June 1, 2019 of NewGen Strategies and Solutions, LLC, an LLC organized under the laws of the State of Colorado, the undersigned, constituting all the Board of Managers of NewGen Strategies and Solutions, LLC, do hereby unanimously resolve:

Pursuant to Section 9.0 – MANAGEMENT OF THE COMPANY, Subsection 9.7 – Signing Authority of Officers, All Members have signature authority up to $200,000.

Above $200,000 up to $1,000,000 requires a signature of a Managing Director, Chief Financial Officer or the President/CEO. A contract of $1,000,000 or above requires a signature by the President/CEO. Additionally, Joseph A. Mancinelli has signature authority up to $500,000.

The above resolution supersedes Board Resolution No. 6 – 2020. All Board of Managers hereby waive notice and meeting with regard to the above action. This resolution shall have the same force and effect as a vote of the Board of Managers.

Board of Managers Signature: Printed Name: Date:

Joseph A. Mancinelli
Anthony M. Georgis
Christopher D. Ekrut
Michael Lane
David S. Yanke
DocuSign Envelope ID: AD79063C-5EFC-47BA-AA42-3925D44FEBFD 10/4/2021
10/4/2021
10/4/2021
11/3/2021
10/5/2021
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Item 10 Page 22 of 262

NEWGEN STRATEGIES AND SOLUTIONS, LLC

LIST OF MEMBERS
As of January 1, 2026
 Maxwell Bernt, Partner and Managing Director
 Scott Burnham, Partner
 Eric Callocchia, Partner
 Brian Dickman, Partner and Chief Financial Officer
 Christopher Ekrut, Partner and President/CEO
 Matthew Garrett, Partner
 Anthony Georgis, Partner and Managing Director
 Michael Maker, Partner
 Grant Rabon, Partner
 Allison Trulock, Partner and Managing Director
 Zachary Wright, Partner
 David S. Yanke, Partner
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Item 10 Page 23 of 262
NewGen Strategies and Solutions, LLC
Services Agreement

______________________

EXHIBIT A

CONTRACTOR'S PROPOSAL








  

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Item 10 Page 24 of 262
JANUARY 26, 2026
www.newgenstrategies.net

FINANCIAL AND TECHNICAL REVIEW

OF SOUTHERN CALIFORNIA EDISON
(SCE) TRANSMISSION RATE AND
WHOLESALE REVENUE REQUIREMENTS

REQUEST FOR PROPOSALS (RFP)
Prepared for:

City of Vernon
Vernon Public Utilities
4305 Santa Fe Avenue
Vernon, CA 90058
© 2026 NEWGEN STRATEGIES AND SOLUTIONS, LLC








  

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Item 10 Page 25 of 262
Economics | Strategy | Stakeholders | Sustainability
www.newgenstrategies.net
225 Union Boulevard,
Suite 450,
Lakewood, CO 80228
Phone: (720) 633-9514
Fax: (720) 633-9535
January 26, 2026
via email
Todd Dusenberry
General Manager
City of Vernon
4305 Santa Fe Avenue
Vernon, CA 90058
Subject: Financial and Technical Review of Southern California Edison Transmission Rate and Wholesale Revenue Requirements
Dear Mr. Dusenberry:

NewGen Strategies and Solutions, LLC (NewGen) appreciates the opportunity to further support Vernon Public Utilities (VPU) in its utility economics-related efforts and their review of the Southern California Edison (SCE) wholesale transmission rate. NewGen understands that our support will include, but is not limited to, reviewing SCE revenue requirements, technical review of infrastructure allocations, summary report, and potential Federal Energy Regulatory Commission (FERC) transmission filing review. Included below is a corporate summary of NewGen, our staff qualifications, our experience applicable to the expertise requested, and an overview of the potential Scope of Work and Services.

NewGen is a management and economic consulting firm serving the utility industry and market.

Established as a Limited Liability Company (LLC) in August 2012, NewGen primarily serves public sector utilities and provides nationally recognized expertise in utility cost of service (COS) and rate design studies, financial feasibility studies, municipalization efforts, depreciation and appraisal studies, litigation support for state and federal regulatory proceedings, utility financial planning, and stakeholder engagement for electric, natural gas, water, wastewater, stormwater, and solid waste utilities.

We recognize the need for strategic intent behind our clients’ actions by applying the latest market insights, technologies, and tactics to support our recommendations. Our results empower decision-makers to implement sound public policy, incorporating community input, market direction, and regulatory mandates. Understanding your community, organization, and data are the three essential elements to developing actionable strategies to maximize the future.

Our approach to VPU’s review of the SCE transmission rate will leverage our local knowledge of VPU’s operations and financials, combined with our federal and state regulatory expertise and experience with wholesale transmission filings. Our team also includes a long-time strategic technical partner, Barr Engineering (Barr), to ensure an extensive and defensible review of the allocation of infrastructure at the Laguna Bell substation.

To support this effort, NewGen has engaged Barr as a technical subcontractor. Barr is an employee-owned engineering and environmental consulting firm with more than six decades of 







  

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Item 10 Page 26 of 262
City of Vernon
January 26, 2026
2 Thoughtful Decision Making for Uncertain Times
experience supporting electric utilities, including extensive work related to transmission infrastructure, system design, and asset evaluation. Barr’s power industry professionals have supported over 300 utilities nationwide and bring deep expertise in transmission facilities, substation configuration, and infrastructure assessments. Barr’s technical review will complement NewGen’s financial and regulatory analysis to ensure a comprehensive, defensible evaluation of SCE’s transmission revenue requirements and infrastructure allocations affecting VPU.

By submission of this proposal, we confirm that it shall remain valid for a minimum period of ninety (90) days from the date of submittal.

NewGen Strategies and Solutions, LLC
225 Union Boulevard, Suite 450,
Lakewood, CO 80228
(720) 633-9514
Tony Georgis
Partner & Managing Director – Energy
[email protected]
(720) 633-9496
Sincerely,
NewGen Strategies and Solutions, LLC
Tony Georgis
Partner & Managing Director – Energy














 







  

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Item 10 Page 27 of 262

CITY OF VERNON

FINANCIAL AND TECHNICAL REVIEW OF SOUTHERN CALIFORNIA EDISON

TRANSMISSION RATE AND WHOLESALE REVENUE REQUIREMENTS
Economics | Strategy | Stakeholders | Sustainability
www.newgenstrategies.net
Table of Contents
INTRODUCTION ............................................................................................................................... 1 GENERAL SCOPE OF WORK ............................................................................................................. 2 Task 1: Transmission Revenue Requirement Review ............................................................................... 2 Operating and Maintenance Expenses ................................................................................................. 2 Depreciation Expenses .......................................................................................................................... 2 Rate Base and Rate of Return ............................................................................................................... 3 Task 2: Service Path and Substation Infrastructure Allocation Review .................................................... 3 Task 3: FERC-Related Support ................................................................................................................... 4 Task 4: Final Report and Financial Model Delivery ................................................................................... 4 FEES AND COSTS ............................................................................................................................. 4 ABILITY OF THE PROPOSER TO PERFORM ....................................................................................... 5 Firm Overview ........................................................................................................................................... 5 Related Work Projects .............................................................................................................................. 7 Project Team ............................................................................................................................................. 9 References .............................................................................................................................................. 11 AFFIDAVIT OF NON-COLLUSION ................................................................................................... 11 APPENDIX A – RESUMES
APPENDIX B – FORM(S)
© 2026 NEWGEN STRATEGIES AND SOLUTIONS, LLC








  

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Item 10 Page 28 of 262

CITY OF VERNON

FINANCIAL AND TECHNICAL REVIEW OF SOUTHERN CALIFORNIA EDISON

TRANSMISSION RATE AND WHOLESALE REVENUE REQUIREMENTS
Economics | Strategy | Stakeholders | Sustainability
www.newgenstrategies.net

INTRODUCTION
NewGen Strategies and Solutions, LLC (NewGen) is uniquely qualified and positioned to support Vernon Public Utilities (VPU) and its review of Southern California Edison (SCE) wholesale transmission revenue requirement. NewGen has supported VPU for more than a decade and has extensive local knowledge of VPU's electric system, rates, operations, and unique community.

NewGen plans to combine its local knowledge with its nationally recognized regulatory and expert witness expertise. We have served as expert witnesses in over 300 regulatory and civil proceedings, and we employ multiple accredited public utility appraisers and Certified Depreciation Professionals. Team members have significant and recent experience in the development of transmission formula rates, cost of capital issues, review of accounting for compliance with the Federal Energy Regulatory Commission (FERC) Uniform System of Accounts (USoA), protocols, other formula rate issues, testimony, and other litigation support.

NewGen staff available for this project have performed and are currently performing similar consulting services on behalf of many public staff, municipals, cooperatives, joint action agencies, and attorneys. NewGen’s staff experience includes the review of transmission annual updates of the following entities:
ƒ Atlantic City Electric
Company
ƒ Jersey Central Power &
Light Company
ƒ San Diego Gas & Electric
Company
ƒ Baltimore Gas and
Electric Company
ƒ Duke Energy Ohio, Inc.
and Duke Energy
Kentucky, Inc.
ƒ Southern California
Edison Company
ƒ Potomac Electric Power
Company
ƒ American Electric Power
Service Corporation
(Eastern Transmission
Zone)
ƒ Public Service Company
of New Mexico
ƒ American Transmission
Systems, Incorporated
ƒ American Electric Power
Service Corporation
(Western Transmission
Zone)
ƒ PacifiCorp
ƒ Mid-Atlantic Interstate
Transmission, LLC
ƒ Cleco Power LLC ƒ Delmarva Power & Light
Company
ƒ Tampa Electric Company ƒ Duke Energy Progress,
LLC
ƒ Duke Energy Carolinas,
LLC
ƒ PECO Energy Company








  

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Item 10 Page 29 of 262

CITY OF VERNON

FINANCIAL AND TECHNICAL REVIEW OF SOUTHERN CALIFORNIA EDISON

TRANSMISSION RATE AND WHOLESALE REVENUE REQUIREMENTS
2 Thoughtful Decision Making for Uncertain Times
NewGen’s long-term strategic engineering partner, Barr Engineering (Barr) will support the project with their extensive engineering expertise related to electric utility transmission and distribution system design. This includes extensive experience in California transmission and substation design and construction. Combining the experts at NewGen and Barr will allow the team to deliver an efficient review of the SCE transmission revenue requirement, in addition to providing defensible insights and adjustments to SCE's proposed transmission rate.

GENERAL SCOPE OF WORK
Task 1: Transmission Revenue Requirement Review
NewGen has extensive experience developing and reviewing wholesale transmission revenue requirements for multiple markets in the United States. Our experience includes experts in revenue requirements, depreciation, rate of return, and cost allocation. Task 1 will include a review of each component of the SCE revenue requirement and alignment with industry practices and California regulatory precedent and rules. This review process will include an initial review of the key components to identify the major updates and key drivers for the cost increase from the prior transmission cost allocation to VPU. Based on that scan of the components, NewGen will develop a list of issues for VPU and potential data requests or requests for information for SCE (if applicable or available to VPU). After completion of the initial review, NewGen will conduct a more detailed review of the components summarized below.

Operating and Maintenance Expenses
NewGen will review the source and development of the transmission and administrative and general (A&G) expenses allocated or assigned to the Laguna Bell substation and transmission revenue requirement related to VPU. This will include verification of the FERC Form 1 data sourced or cited, as well as the allocation of A&G and transmission costs to VPU’s applicable infrastructure or the Laguna Bell Substation. Based on this analysis and review, potential adjustments will be identified, where applicable. This review of the operations and maintenance (O&M) expenses will also integrate the results of the technical review of the substation and allocation of infrastructure to VPU versus others in the substation. As the allocation of infrastructure to VPU may change, it would impact eventual expense allocations in the revenue requirement.

Depreciation Expenses
NewGen will leverage our multiple Certified Depreciation Professionals to review the useful lives, depreciation parameters alignment with FERC adopted methodologies, and other supporting elements of the depreciation expenses for the applicable plant included in the revenue requirement. This review may identify increased or accelerated depreciation expense for certain assets, which may be elevating the revenue requirement. This review will also include a more 







  

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Item 10 Page 30 of 262

CITY OF VERNON

FINANCIAL AND TECHNICAL REVIEW OF SOUTHERN CALIFORNIA EDISON

TRANSMISSION RATE AND WHOLESALE REVENUE REQUIREMENTS
Thoughtful Decision Making for Uncertain Times 3
detailed review in collaboration with our technical experts of the reported plant additions to the substation and their appropriateness and impact to the elevated transmission rate.

Rate Base and Rate of Return
NewGen will leverage Task 3 and the technical review of the substation infrastructure review to identify potential adjustments to the plant in service, plant additions, and other rate base components, which will affect the eventual return on rate base included in the revenue requirement. This review will also include a high-level review of the return on equity and weighted average cost of capital used to calculate the return on rate base. FERC has clear guidelines and procedures on the development of a rate of return, which NewGen will review and ensure were followed in the SCE model and results. We will also integrate recommended changes or adjustments to the plant depreciation evaluation to ensure proper net plant values are included.

Taxes and Other Expenses
While taxes and other expenses are a smaller component of the overall revenue requirement, NewGen will review and apply our broader FERC wholesale experience to these accounts included by SCE.

Once the initial review for the key drivers and more detailed evaluation of the revenue requirement components is completed, NewGen will provide VPU with an adjusted revenue requirement and hold a virtual meeting with staff to review the outcomes and issues. Please note, this review with staff will take place after Task 2 is completed as it will impact the eventual revenue requirement outcome.

Task 2: Service Path and Substation Infrastructure Allocation Review Task 2 will include a detailed review of the facilities associated with, and included in, the Laguna Bell substation. This will include a review of the substation infrastructure and components in addition to the transmission and distribution lines associated with the operation of the substation and delivery of power to VPU. Our technical expert, Tom Ghidossi of Barr, will review publicly available information regarding the substation, in addition to any documents provided by SCE.

This could include one-line diagrams, Google Earth imagery, descriptions of the infrastructure at the substation, documentation of the division or allocation of plant, and other elements affecting the assignment of plant to specific customers and utilities. Once we have reviewed the plant allocation data, NewGen will identify any changes to the substation arrangement, equipment, or design that would affect the portions of the plant considered used and useful for VPU relative to other parties at the substation.

In addition to the review of the plant additions and delineation at the substation, NewGen will review the load ratio share of the substation allocated to VPU. This load ratio share data review will include verification of SCE source data, evaluation of the VPU load inputs used by SCE, and confirmation that other loads served by the substation were properly applied in the allocation of 







  

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Item 10 Page 31 of 262

CITY OF VERNON

FINANCIAL AND TECHNICAL REVIEW OF SOUTHERN CALIFORNIA EDISON

TRANSMISSION RATE AND WHOLESALE REVENUE REQUIREMENTS
4 Thoughtful Decision Making for Uncertain Times
plant. Our review of the load ratio share data will also include the evaluation of historical application of load ratio shares and ensure the consistency of the methodology in past and current revenue requirements.

Based upon this review and evaluation, NewGen will provide a list of the key issues that are driving the increased cost and plant allocation to VPU. We will also provide a list of recommended adjustments and/or reductions to the plant allocations associated with the transmission and distribution assets. NewGen will hold a virtual meeting with VPU to discuss the results. The results of this task will be integrated with Task 1 and reflected in any resulting adjustments to the overall revenue requirement for transmission service.

Task 3: FERC-Related Support
NewGen has extensive experience supporting clients and utilities intervening in FERC wholesale transmission filings and settlement conferences. We will apply our experience gained from decades of FERC filings to estimate the time and expenses needed to support VPU in contesting an SCE wholesale transmission filing related to the Laguna Bell substation and service to VPU.

Based on our experience with FERC filings, we will also provide a list of the key issue areas for VPU to focus on with SCE. NewGen initially expects this budget estimate to be $7,500 to support VPU in the potential FERC filing, after the Project Team has completed Tasks 1, 2, and 4.

Task 4: Final Report and Financial Model Delivery
Upon completion of Tasks 1 through 4, NewGen will provide VPU with a draft and final report summarizing the analysis and outcomes of the transmission rate review. After VPU’s review of the draft report, NewGen will integrate any feedback or updates from VPU staff in the final report. The report will include the detailed evaluation of the revenue requirements, cost allocations, plant allocations, and adjustments recommended to the wholesale transmission revenue requirement. NewGen will make adjustments identified in the revenue requirement model and provide it to VPU. We will provide a review of the model and training, as necessary, for VPU’s future use.

FEES AND COSTS
NewGen proposes to conduct the enclosed Scope of Work and Services on a time and materials basis for an estimated not-to-exceed budget of $25,000, which includes all estimated labor and expenses, including reasonable travel-related expenses. Please note this cost estimate does not include intervention support for the potential FERC wholesale transmission filing. That budget estimate will be developed in Task 3 and is expected to be executed separate from this deliverable.

NewGen’s current billing rates by position for 2026 are summarized in the table below. 







  

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Item 10 Page 32 of 262

CITY OF VERNON

FINANCIAL AND TECHNICAL REVIEW OF SOUTHERN CALIFORNIA EDISON

TRANSMISSION RATE AND WHOLESALE REVENUE REQUIREMENTS
Thoughtful Decision Making for Uncertain Times 5
NewGen Strategies and Solutions
2026 Billing Rates
Position Hourly Billing Rate
Partner $305 – $455
Principal $295 – $455
Senior Manager $250 – $295
Manager $220 – $250
Senior Consultant $200 – $220
Consultant $185 – $200
Administrative Services $145
Note: Billing rates are subject to change based on annual reviews and salary increases.

ABILITY OF THE PROPOSER TO PERFORM
Firm Overview
NewGen is a management and economic consulting firm serving the utility industry and market.

Established as a Limited Liability Corporation in August 2012, NewGen primarily serves public sector utilities and provides nationally recognized expertise in utility cost of service (COS) and rate design studies, financial feasibility studies, municipalization efforts, depreciation and appraisal studies, litigation support for state and federal regulatory proceedings, utility financial planning, and stakeholder engagement for water, wastewater, stormwater, solid waste, electric and natural gas utilities.

We recognize the need for strategic intent behind our clients’ actions by applying the latest market insights, technologies, and tactics to support our recommendations. Our results empower decision-makers to implement sound public
policy, incorporating community input, market direction, and regulatory mandates.

Understanding your community, organization, and data are the three essential elements to developing actionable
strategies to maximize the future. NewGen believes that strategy dictates everything. Our approach utilizes your data, market trends, and community values to provide an integrated view designed to make long-term decisions with confidence. We leverage our modeling technology and
market expertise in water, wastewater, stormwater, solid waste, and energy to solve your most complicated issues.

Through proactive collaboration, we upgrade or design strategies for you to ensure they are 







  

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Item 10 Page 33 of 262

CITY OF VERNON

FINANCIAL AND TECHNICAL REVIEW OF SOUTHERN CALIFORNIA EDISON

TRANSMISSION RATE AND WHOLESALE REVENUE REQUIREMENTS
6 Thoughtful Decision Making for Uncertain Times
responsive, transparent, and reliable, while paving the way for successful buy-in across all your stakeholders. Our approach has three important features:

1. Client/Stakeholder Communications: NewGen simplifies complex concepts by combining visual tools and our training expertise to ensure that clients understand how the issues and underlying data drive our recommendations. This directly impacts the evaluation of the scenarios we present, streamlines decision-making, and successfully obtains buy-in from elected officials, customers, regulatory bodies, and senior management.

2. Operational Insights: NewGen makes data operational, resulting in actionable decisions with defensible results. We harness existing and untapped data to optimize operations, develop demand management strategies, estimate the impacts of distributed generation, and identify the rational nexus underlying pricing decisions. We help our clients recover costs, improve service delivery, and respond to changing market conditions.

3. Trusted Expertise: We have served as expert witnesses in over 300 regulatory and civil proceedings and employ 26% of the ASA-accredited public utility appraisers in the United States. Unlike other firms, NewGen integrates the insights of nationally recognized experts into our models, both of which have been pressure tested through regulatory and civil processes.

NewGen employs over 70 professional and administrative staff. Our current staff has the capability to work on simultaneous assignments, and we have the capacity to add staff and/or expand support from a network of teaming partners, if needed. NewGen has 16 offices located nationwide.








  

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Item 10 Page 34 of 262

CITY OF VERNON

FINANCIAL AND TECHNICAL REVIEW OF SOUTHERN CALIFORNIA EDISON

TRANSMISSION RATE AND WHOLESALE REVENUE REQUIREMENTS
Thoughtful Decision Making for Uncertain Times 7
Barr will support NewGen as a technical subcontractor for this engagement. Barr is an employeeowned engineering and environmental consulting firm with more than 60 years of experience providing engineering and technical services to the power industry. Barr’s professionals have supported a wide range of electric utilities nationwide, including public power entities and investor-owned utilities (IOUs), with expertise in transmission facilities, substation configuration, and infrastructure assessments. For this engagement, Barr will provide technical review and analysis related to transmission infrastructure and substation arrangements to support the evaluation of SCE’s transmission revenue requirements and associated cost allocations impacting VPU.

Related Work Projects
The NewGen Project Team is well qualified to provide VPU with the services identified in the Request for Proposals (RFP) as we have extensive experience in the California energy market, with FERC wholesale transmission filings, as well as having provided services to VPU for more than a decade. In addition, we have worked with other utilities and other entities around the country on developing and evaluating wholesale transmission tariffs and revenue requirements.

NewGen has unique expertise in developing these transmission revenue requirements for our utility clients in addition to providing regulatory expert witness services in review of IOU FERC wholesale transmission tariffs across the country.

The following are four project descriptions related to client engagements that NewGen has completed, which we believe are relevant to VPU’s Scope of Work.

City of Vernon Public Utilities – Electric and Gas Utility Cost of Service, Rate Design, and Utility Financial Studies The NewGen team has supported multiple electric and gas utility COS, rate design, and utility financial studies on behalf of VPU since 2014. In support of the natural gas utility, NewGen has provided marketing and communications planning support, COS and rate studies, and as-needed regulatory, financial, and competitive analysis services. NewGen has completed multiple natural gas COS studies, which have included developing revenue requirements, functionalizing costs, and allocating costs to customer classes. These COS efforts inform ratemaking and competitive marketing of services for natural gas in the Los Angeles, CA area. VPU’s gas system is unique as the utility can directly compete with the incumbent natural gas utility in the service territory. As such, NewGen supported competitive analyses of the COS results, performed in-depth competitive benchmarking to inform ratemaking, and updated line extension policies and methods to support customer acquisition. Deliverables in past work for VPU’s gas utility included COS and rate models, a benchmarking tool that is periodically updated with market conditions to support customer acquisition, marketing plans, and a line extension review/benchmarking analysis.

Farmington Electric Utility System – Depreciation Study and Transmission Filing at Southwest Power Pool Farmington Electric Utility System (FEUS) is a municipally owned electric utility operated by the City of Farmington in northwest New Mexico. FEUS provides electric service to residential, 







  

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Item 10 Page 35 of 262

CITY OF VERNON

FINANCIAL AND TECHNICAL REVIEW OF SOUTHERN CALIFORNIA EDISON

TRANSMISSION RATE AND WHOLESALE REVENUE REQUIREMENTS
8 Thoughtful Decision Making for Uncertain Times
commercial, industrial, and economic development customers across its territory of approximately 1,718 square miles. FEUS serves about 46,000 metered customers, including areas within San Juan County and a small part of Rio Arriba County. As a city-owned utility, FEUS operates under local rules and regulations approved by the Farmington City Council.

FEUS intends to join the newly formed Southwest Power Pool (SPP) West Regional Transmission Organization (RTO) in April of 2026. SPP is a nonprofit corporation mandated by FERC to ensure reliable supplies of power, adequate transmission infrastructure, and competitive wholesale electricity prices on behalf of its members. Currently, FEUS is a participant in SPP’s Western Energy Imbalance Service market (WEIS).

As part of joining SPP, FEUS must develop an Annual Transmission Revenue Requirement (ATRR). FEUS hired NewGen to develop the ATRR, the supporting depreciation study, and associated testimony suitable for an SPP and FERC transmission filing.

The project is ongoing with an expected completion date of April 2026. NewGen’s tasks include:
ƒ Perform a full system depreciation study.
ƒ Develop the ATRR, including rate base, return on rate base, expenses, and allocation factors. ƒ Develop expert testimony identifying FEUS’s ATRR, including supporting exhibits and work papers, which have been provided to SPP and filed at FERC. ƒ Support the ATRR filing including discovery questions, responding to intervenors, and participate in any settlement calls, if needed.

New Jersey Division of Rate Counsel
For the past 12 years, several Project Team members have supported the New Jersey Division of Rate Counsel in evaluating transmission formula rates and related FERC filings for the state’s four major electric utilities: Public Service Electric & Gas (PSE&G), Jersey Central Power & Light (JCP&L, a FirstEnergy company), Atlantic City Electric (ACE, an Exelon company), and Rockland Electric Company (RECO, part of Orange & Rockland/Con Edison). Our team has served as technical advisors and expert witnesses across multiple FERC Section 205 proceedings and related transmission matters.

NewGen team members’ work has encompassed comprehensive review of transmission formula rate updates and filings, including detailed assessments of revenue requirements, cost recovery mechanisms, and the accuracy and transparency of formula rate inputs. This experience extends to cost of capital and capital structure issues, including evaluation of return on equity and overall rate of return proposals, with a focus on ensuring just and reasonable rates for New Jersey customers.

Our staff have conducted in-depth reviews of accounting practices and regulatory compliance, including:
ƒ Evaluation of transmission plant and related assets for consistency with FERC’s USoA. 







  

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CITY OF VERNON

FINANCIAL AND TECHNICAL REVIEW OF SOUTHERN CALIFORNIA EDISON

TRANSMISSION RATE AND WHOLESALE REVENUE REQUIREMENTS
Thoughtful Decision Making for Uncertain Times 9
ƒ Review of formula rate protocols, annual update processes, and true-up mechanisms. ƒ Depreciation rate analysis and asset service life assumptions. ƒ Asset accounting review, including allowance for funds used during construction (AFUDC), construction work in progress (CWIP), retirements, and transfers.

NewGen has provided written and oral testimony, technical memoranda, discovery support, and hearing preparation in numerous FERC Section 205 and related proceedings involving these New Jersey utilities. Our litigation support has included development and preparation of data requests and responses, preparation of cross examination materials, and coordination with legal counsel.

Through this sustained engagement, NewGen offers a deep understanding of:
ƒ New Jersey utilities’ transmission formula rate structures and historical filings. ƒ FERC ratemaking and accounting standards applicable to transmission owners. ƒ The procedural and evidentiary requirements associated with FERC Section 205 cases.

Six Cities – FERC Transmission Rate Review
The NewGen team is currently working with the Thompson Coburn law firm, on behalf of the Six Cities, to review and challenge the FERC transmission rates charged by several IOUs in California.

Our team provides technical expertise in the areas of cost of capital, COS, and regulatory accounting.

This work involves reviewing the annual transmission formula rate updates charged by Pacific Gas & Electric (PG&E), SCE, and San Diego Gas & Electric (SDG&E), as well as providing technical support to challenge the rates charged by these utilities. In addition, the NewGen team is supporting settlement efforts related to SDG&E’s new TO6 transmission formula rate (Docket No.

ER25-2395). NewGen is also providing expert witness testimony on cost of capital for the Six Cities in connection with the DCR Transmission, LLC rate filing before FERC (Docket No. ER23- 2309-001). Further, the NewGen team is providing technical expertise on behalf of the Six Cities in FERC transmission rate filings submitted by Horizon West (Docket No. ER25-2395) and Viridon Path 15 (Docket No. ER25-2707).

Project Team
NewGen evaluates the needs of each project and responds by assembling a Project Team of knowledgeable professionals who are uniquely qualified to provide the services needed. Our Project Teams include experts in COS and rate design, distributed energy resources (DER) technologies, application of emerging technologies at utilities, transmission rates and tariffs, and analytical support needed to accurately execute the work. NewGen seeks to be a trusted advisor to all our clients, and our team is committed to completing the identified services in a timely and professional manner.








  

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CITY OF VERNON

FINANCIAL AND TECHNICAL REVIEW OF SOUTHERN CALIFORNIA EDISON

TRANSMISSION RATE AND WHOLESALE REVENUE REQUIREMENTS
10 Thoughtful Decision Making for Uncertain Times
Our team has a long history of working with various entities across the country on a variety of critical financial and economic issues. As a company, we routinely provide insight and analysis for electric, water, wastewater, solid waste, natural gas, and other utility areas. Team members have significant and recent experience in the development of solar rate strategies, analyzing and integrating system and customer load profiles, financial planning, development of COS studies, rate design, standby rates, and litigation.

A summary of our proposed project organization and team bios are provided below. Full resumes for each team member are included in Appendix A.

Tony Georgis, Partner & Managing Director – Energy | Project Role: Project Manager/Liaison | Project Dedication: 25% of budget Tony Georgis is Managing Director of NewGen’s Energy Practice and brings more than 25 years of experience in engineering and economic analyses for the energy, natural gas, water, and waste resources industries. His work includes various assignments for private industry, local governments, and utilities, including sustainability strategy, strategic planning studies, stakeholder engagement, financial and economic analyses, COS and rate studies, energy efficiency, and market research. Tony has managed multiple utility COS and rate design studies including developing revenue requirements, unbundling costs, and classifying costs and allocation factors.

Jessica Rozier, Principal | Project Role: FERC Transmission Revenue Requirement Lead | Project Dedication: 45% of budget Jessica Rozier is a seasoned utility industry consultant with more than 18 years of experience in utility rate studies, COS analysis, mergers and acquisitions, and financial analysis supporting municipal bond financings. Her work includes preparing consulting engineer’s reports and expert testimony for electric utility revenue bonds, managing and analyzing COS filings for major IOUs, developing transmission COS formulas, and supporting complex regulatory, litigation, and contractual matters before FERC and state commissions. Ms. Rozier has represented a wide range of clients in transmission and wholesale rate cases, tax reform proceedings, and formula rate reviews nationwide, and more recently has focused on advanced FERC matters involving new and projected formula rates, Reliability Must-Run (RMR) cases, affiliate transactions, depreciation and tax issues, and accounting protocols. In July 2025, she filed written testimony on behalf of the Alaska RTO, developing the transmission formula rate tariff to be used by all utilities within the RTO.

James Garren, Senior Manager | Project Role: Depreciation Expert | Project Dedication: 20% of budget James Garren joined NewGen as a Senior Manager in October 2025. Mr. Garren provides expert witness testimony with a specialized focus on depreciation. He supports clients and project teams through both quantitative and qualitative analysis, the preparation of client presentations, and case management. While his primary expertise lies in depreciation studies, Mr. Garren has also prepared 







  

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CITY OF VERNON

FINANCIAL AND TECHNICAL REVIEW OF SOUTHERN CALIFORNIA EDISON

TRANSMISSION RATE AND WHOLESALE REVENUE REQUIREMENTS
Thoughtful Decision Making for Uncertain Times 11
exhibits related to revenue requirements, cost allocation, rate design, and rate of return in regulatory proceedings. In addition, he has assisted in the preparation of valuation studies for municipal water utilities. Mr. Garren is a member of, and has been made a Certified Depreciation Professional, by the Society of Depreciation Professionals. In addition, Mr. Garren has attended the National Association of Regulated Utility Commissioners’ Rate School.

Tom Ghidossi, Senior Electrical Engineer | Project Role: Subcontractor | Project Dedication: 10% of budget Tom Ghidossi has more than four decades of experience serving as principal and project manager for electrical engineering projects. He has an extensive background in designing and analyzing low-, medium-, and high-voltage power generation, transmission, and distribution systems including utility, industrial, and commercial systems (600V to 500kV). He has specialized expertise in protective relaying and communication systems. Mr. Ghidossi focuses on larger substation, generation, and transmission/distribution projects. Prior to joining Barr, Tom founded Exponential Engineering Company in 1993, leading that firm to provide responsive and personalized service to the electric power industry.

References
NewGen encourages the VPU to contact any of the representative professional references below.

These clients can speak to our ability to provide quality work similar to the services requested by the VPU. We are happy to provide additional references upon request.

Imperial Irrigation District
Belen Valenzuela, Chief
Financial Officer
P.O. Box 937, Imperial, CA
92251
(760) 427-7670
[email protected]
City of Pasadena
Lynne Chaimowitz, CPFO
150 South Los Robles Avenue,
#200, Pasadena, CA 91101
(626) 744-4515
[email protected]
New Jersey Division of Rate
Counsel
Brian Lipman, Division
Director
140 East Front Street, 4th
Floor, P.O. Box 003, Trenton,
New Jersey 08625
(609) 984-1460
[email protected]

AFFIDAVIT OF NON-COLLUSION
NewGen’s Affidavit of Non-Collusion is attached to this proposal as Appendix B. 







  

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Item 10 Page 39 of 262
APPENDIX A:

RESUMES
CITY OF VERNON RFP:

FINANCIAL AND TECHNICAL REVIEW OF SOUTHERN

CALIFORNIA EDISON (SCE) TRANSMISSION RATE

AND WHOLESALE REVENUE REQUIREMENTS








  

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Item 10 Page 40 of 262
Tony Georgis
Managing Director – Energy Practice
Economics | Strategy | Stakeholders | Sustainability
www.newgenstrategies.net

CONTACT
225 Union Blvd., Ste 450
Lakewood, Colorado 80228
[email protected]
www.newgenstrategies.net

EDUCATION
Master of Business Administration,
Finance Specialization, Texas A&M
University
Bachelor of Science in Mechanical
Engineering, Texas A&M University

PROFESSIONAL REGISTRATIONS/

CERTIFICATIONS/COMMITTEES
Registered Professional Engineer (PE)
Mechanical, Colorado
Registered Professional Engineer (PE)
Mechanical, Louisiana

KEY EXPERTISE
Cost of Service and Rate Design
Expert Witness and Litigation Support
Financial / Economic Analysis
Strategic Planning
Sustainability
Mr. Tony Georgis has spent more than 25 years consulting in the energy and public utility markets and was a founding partner of NewGen. Mr. Georgis is currently the Managing Partner for NewGen’s Energy Practice. His consulting career has focused on developing utility organizational and financial strategies with defensible, data-driven support. Tony’s experience blends strategic planning, stakeholder engagement, expert witness, sustainability, and analytical expertise to deliver a unique, more integrated perspective of the market and utility financial performance. Like other leaders at NewGen, Tony applies his experience and expertise to generate insights and a roadmap to address the utility market’s most complex issues and opportunities. His work includes leading strategic planning studies, expert witness testimony, financial and economic analyses, cost of service and rate studies, and market research.

RELEVANT EXPERIENCE
Sustainability, Energy Strategy, and Strategic
Planning
Mr. Georgis leads and manages the development of strategic plans and Roadmaps for utilities, energy agencies, and municipal governments to guide decision-making in increasingly complex business environments. His strategic planning experience includes energy, water, wastewater, solid waste utilities, and local government entities. In support of strategic planning engagements, Mr.

Georgis often facilitates internal planning teams and external stakeholder engagement activities to promote broad and/or targeted stakeholder input to the plans. A strategic plan or Roadmap development typically includes overarching strategic elements such as the organization’s vision/mission, tactical components like projects and activities supporting and ensuring implementation, and tracking/reporting tools for the organization’s measurement of progress to the plan.

Mr. Georgis has also led the development of clean energy and sustainability (or CSR) plans for cities, counties, and utilities to improve the triple bottom line (economic, environmental, and social) and energy performance. Mr. Georgis utilizes an enterprise-wide approach to sustainability to manage regulatory, customer, and financial demands while improving the triple bottom line. He has facilitated the development of city-wide sustainability plans and served as a sustainability subject matter expert. In his role, Mr. Georgis collaborated among internal and external stakeholders, including city/utility staff, key department managers, community representatives, utility customers, and non-profit or nongovernmental organizations (NGOs). To support sustainability planning efforts, Mr. Georgis has developed optimization models to prioritize and identify the “next best dollar spent” to pursue sustainability goals while estimating total costs to implement. He has also implemented sustainability auditing/reporting tools such as greenhouse gas (GHG) inventories/reporting and the development of a utility-tailored version of the Global Reporting Initiative (GRI). 







  

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Item 10 Page 41 of 262

TONY GEORGIS
Managing Director – Energy Practice
Thoughtful Decision Making for Uncertain Times 2
Sustainability, Energy Strategy, and Strategic Planning (cont.) Mr. Georgis’ clients for sustainability, energy strategy, and strategic planning include:
 Alameda Municipal Power, CA
 City of Colorado Springs, CO
 City of El Paso, TX
 City of Fort Collins, CO
 City of Longmont, CO
 City of Palo Alto Utilities, CA
 Fort Collins Utilities, CO
 Lakeland Electric, FL
 Loudoun County, VA
 Tampa Bay Water, FL
 State of Vermont Department
of Public Service, VT
 Western Area Power
Administration, CO
Cost of Service and Rate Design
Mr. Georgis leads numerous utility financial planning, cost of service, and rate design projects. Specific tasks typically include:
 The development of the
revenue requirement.
 Functionalization of costs.
 Allocation of costs to
customer classes.
 Review of existing customer
class criteria.
 Evaluation of line extension
and facilities charges.
 Rate design.
 Transitioning of models for
the client’s future use.

He has also led the development of financial forecasting models to support long-term capital, expense, revenue budgeting, and decision-making. Mr. Georgis routinely facilitates workshops to develop utility rate strategies or rate studies and presents the study and financial recommendations to governing bodies, boards, and city councils. Mr. Georgis’ clients for cost of service and rate design include:
 Alameda Municipal Power, CA
 American Samoa Power
Authority
 Anaheim Public Utilities, CA
 Arizona Public Service, AZ
 Austin Energy, TX
 Benton Public Utility
District, WA
 Burbank Water and Power, CA
 Central Cost Community
Energy, CA
 City of Cleveland Electric
Utility, OH
 City of Garland, TX
 City of Gonzales, CA
 City of Weatherford, TX
 City Utilities, Springfield, MO
 Clean Power Alliance, CA
 Cleveland Public Power, OH
 Colorado Springs Utilities, CO
 Farmington Electric Utility, NM
 Glendale Water and
Power, CA
 Imperial Irrigation District, CA
 Lafayette Utilities System, LA
 La Plata Electric
Association, CO
 Lincoln Electric System, NE
 Lubbock Power and Light, TX
 Merced Irrigation District, CA
 New Braunfels Utilities, TX
 Pasadena Water and
Power, CA
 San Diego County Water
Authority, CA
 San Jose Clean Energy, CA
 U.S. Army; Huntsville, AL
 Vernon Public Utilities, CA
 Victorville Gas Utility, CA








  

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TONY GEORGIS
Managing Director – Energy Practice
NewGen Strategies and Solutions, LLC 3
Economic, Financial or Market Analyses
Mr. Georgis often provides technical, financial, and advisory support services for various energy and utility-related projects. He is an expert in developing financial pro formas, bond financings, performing scenario analyses, and evaluating market conditions to support project financing or feasibility decision-making. He has analyzed technical assumptions, optimized project financing, performed scenario/sensitivity analyses, and assisted clients in bidding processes. He has provided economic analyses of utility-scale renewable energy projects, power plant fuel conversions, LNG terminals, conventional/renewable distributed energy resources, and DSM/demand response program benefits. Mr. Georgis’ clients for economic, financial, or market analyses include:
 Arizona Power Authority, AZ
 Austin Energy, TX
 CalRecycle, CA
 CPS Energy, TX
 Ember Infrastructure, NY
 Fayetteville Public Works
Commission, NC
 Florida Municipal Power
Agency, FL
 Fort Collins Utilities, CO
 Freeport Container Port,
Grand Bahama
 Hawaii Gas Company, HI
 ISO-New England, MA
 Kings River Conservation
District, CA
 Niobrara Energy
Development, CO
 Solid Waste Authority of
Central Ohio, OH
 Terrebonne Parrish, LA
 U.S. Army; Huntsville, AL
 Water and Power Authority,
US Virgin Islands
Expert Witness and Litigation Support
Mr. Georgis has provided expert testimony since 2014 regarding electric utility revenue requirements, cost of service, rate design, and ratemaking issues before state and local regulatory bodies and courts. He has national experience providing litigation support regarding ratemaking matters at wholesale and retail levels in California, Florida, Indiana, and Texas.

Mr. Georgis’ expert witness and litigation support experience include:

Public Utility Commission of Texas
 Centerpoint Energy Houston Electric, LLC; SOAH
Docket No. 473-14-3897 and PUC Docket
No. 42560
 City of Lubbock, Lubbock Power & Light; PUC
Docket No. 52390
 City of Lubbock, Lubbock Power & Light; SOAH
Docket No. 473-24-04313; PUC Docket No. 54657
 City of Lubbock, Lubbock Power & Light; SOAH
Docket No. 473-21-0043 and PUC
Docket No. 51100
 Oncor Electric Delivery Company; SOAH Docket
No. 473-22-2695 and PUC Docket 53601
 Southwestern Electric Power Company
(SWEPCO); SOAH Docket No. 473-21-0538 and
PUC Docket No. 51415
Indiana Utility Regulatory Commission
 Indiana Michigan Power Company, Cause No.
45993
 Northern Indiana Public Service Company LLC
(NIPSCO); Cause No. 45159
Northern Indiana Public Service Company LLC
(NIPSCO); Cause No. 45772








  

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TONY GEORGIS
Managing Director – Energy Practice
Thoughtful Decision Making for Uncertain Times 4
Florida Public Service Commission
 Duke Energy, Florida; Docket No. 20210016-EI  Florida Power & Light Company; Docket No. 20210015-EI
Superior Court of the State of California for the County of Los Angeles  City of Pasadena – Pasadena Water and Power; No. BC 677632 California Public Utility Commission
 Pacific Gas and Electric Company
CPUC Application No. 21-06-021
 San Diego Gas and Electric Company
CPUC Application No. 22-05-016
 Southern California Edison Company
CPUC Application No. 23-05-010

PRESENTATIONS AND PUBLICATIONS
Mr. Georgis has presented at numerous industry associations and conferences, provided training for utility staff, and published several trade journal articles. These efforts have focused on utility finance, strategic planning, market trends/opportunities, and sustainability. Mr. Georgis’ presentations and publications are detailed below.

Presentations
APPA Legislative Rally Preconference Seminar, 2020
 Demystifying Distributed Energy Resources
APPA Business and Finance Conference Preconference Seminar, 2019  Distributed Energy Resources: Risks and Opportunities APPA National Conference – Preconference Seminars, 2017/2018/2019  Distributed Energy Resources: Risks and Opportunities Washington PUD Association Finance Officers, 2016
 Balancing Aging Infrastructure, Rates, and Residential Demand Harvard University Zofnass Program for Sustainable Infrastructure, 2011  Tools and Frameworks to Drive the Business Case for Sustainability Association of Climate Change Officers, 2010
 SEC Climate Change Disclosure Guidance
Platts Energy Markets Webinar, 2010
 SEC Guidance on Climate Change Disclosures
Global Commerce Conference, 2010
 Leadership in Sustainability – Sustainability Decision Making, Implementation and Reporting University of Colorado Denver Managing for Sustainability, 2012  Regulatory Drivers for Sustainability








  

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TONY GEORGIS
Managing Director – Energy Practice
NewGen Strategies and Solutions, LLC 5
Inter-American Development Bank, 2010
 Transportation Sustainability and Climate Change Seminar Tire Industry Association Scrap to Profit, 2010
 Evolution of the Carbon Markets and Opportunities for the Scrap Tire Industry Energy Utility and Environmental Conference, 2010
 Evolution and Optimization of Energy Efficiency and Smart Grid Measures Tire Industry Association Recycling Conference, 2009
 Carbon Credits and Recycling Products
Tire Industry Association Recycling Conference, 2008
 Selling Tire-derived Products to the Architectural and Construction Markets Articles
 Growing Role for Demand Response in ISO Operations. Utility Automation and Engineering T&D, November 2008  Recycling and Climate Change: A Primer. Resource Recycling, August 2009  Recycling and Climate Change: Opportunities for Recycling as a Climate Change Strategy. Resource Recycling, September 2009








  

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Item 10 Page 45 of 262

JESSICA ROZIER
Principal
Economics | Strategy | Stakeholders | Sustainability
www.newgenstrategies.net

CONTACT
225 Union Boulevard,
Suite 450,
Lakewood, CO 80228
[email protected]
www.newgenstrategies.net

EDUCATION
Bachelor of Science, Georgia Institute of
Technology
Certificates in Finance and Operations
Management

KEY EXPERTISE
Cost of Service Analysis
Transmission and Production Rate
Design
Regulatory and Litigation Support
Regulatory Filing Preparation and Review
Expert Testimony in FERC & State
Proceedings
FERC Transmission Rate Cases
Utility Merger and Acquisition Analysis
Wholesale Service Rate Development
Utility Billing Audit Compliance
Electric Utility Revenue Bond Support
Federal/State Tax Remeasurement (e.g.

TCJA) Analysis, Implementation &
Compliance
Jessica is a seasoned utility industry consultant with over 18 years of experience specializing in utility rate studies, cost of service analysis, utility merger and acquisitions and financial analysis in support of municipal bond financings. Her expertise includes preparing consulting engineer’s reports, opinions, and certificates integral to the issuance of electric utility revenue bonds, as well as providing litigation support and expert testimony in both regulatory proceedings and contract disputes. Throughout her career on behalf of her clients, Ms. Rozier has managed and analyzed annual cost of service filings made by a range of major investor-owned utilities and has played a key role in developing transmission cost of service formulas. She is also experienced in supporting negotiations, auditing utility billing under complex agreements, and ensuring compliance with bond resolution requirements through annual engineering reports.

Ms. Rozier’s project experience spans the development of wholesale service rates; representing municipal, cooperative, industrials, consumer advocates, state public service commission clients in transmission rate cases at the Federal Energy Regulatory Commission (FERC); participation in state regulatory cases— particularly those dealing with the impacts of tax reform on utility rates and revenue requirements; and the review of annual formula rate updates for utilities nationwide. Her work has involved numerous regulatory dockets before the FERC and state utility commissions, reflecting her comprehensive grasp of financial, ratemaking and regulatory challenges facing the electric utility sector.

RELEVANT EXPERIENCE
Transmission Rate Cases
Recent FERC transmission cases in which Ms. Rozier has participated on behalf of transmission clients:
ƒ Transource – Docket No. ER17-419
ƒ Mid-Atlantic Interstate Transmission, LLC – Docket No. ER17-211 ƒ Jersey Central Power & Light – Docket No. ER17-217, ER20-227 ƒ American Electric Power (East) – Docket Nos. ER17-405 and ER17-406 ƒ PECO Energy Company – Docket No. ER17-1519
ƒ Pepco Holdings Inc. – Docket No. ER19-1475
ƒ Tucson Electric Power – Docket No. ER-20-2019
ƒ Exelon Tax Cuts and Jobs Act Filing – Docket No. ER19-5 et. al ƒ Atlantic City Electric – Docket No. ER20-2197
ƒ Baltimore Gas and Electric Company – Docket No. ER21-214 ƒ Rockland Electric Company – Docket No. ER25060374
ƒ NRG Power Marketing LLC – Docket No. ER24-2255 ER22-1539 ƒ H. A. Wagner and Brandon Shores LLC – Docket Nos. ER24-1790 & ER24-1787 ƒ SouthFirst Energy Companies/Keystone Appalachian Transmission Company – Docket Nos. ER21-253 & ER25-2530
ƒ NextEra Energy Transmission LLC – Docket No. ER24-2255 







  

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Item 10 Page 46 of 262

JESSICA ROZIER
Principal
Thoughtful Decision Making for Uncertain Times 2
ƒ Valley Link – Docket No. EL25-77
ƒ MidAtlantic Offshore Development – Docket No. EL24-137 Wholesale Service Rates Cases
ƒ City of Alexandria, LA – Transmission Cost of Service ƒ East Kentucky Power Coop, KY – Transmission Cost of Service ƒ Matanuska Electric Association – Transmission Cost of Service State Regulatory Cases
ƒ BPU Docket No. AX18010001 New Jersey Board of Public Utilities – TCJA Impacts on Retail Rates of Thirteen Electric, Water and Gas Utilities Serving New Jersey
ƒ BPU Docket No. GR19040486 New Jersey Board of Public Utilities – TCJA Impacts on Retail Rates of Elizabethtown Gas Company
ƒ BPU Docket No. GR18030230 New Jersey Board of Public Utilities – TCJA Impacts on Retail Rates of South Jersey Gas Company
ƒ Case No. 9695 Maryland Public Service Commission – The Potomac Edison Company's Application for Adjustments to its Retail Rates for the Distribution of Electric Energy Annual Formula Rate Update Cases
ƒ Public Service Company of New Mexico – Transmission Formula – Docket No. ER19-2042 ƒ Duke Energy Progress – Transmission and Production Formulas – Docket No. ER09-1165, ER17-1553 ƒ Duke Energy Carolinas – Transmission Formula – Docket No. ER11-3585 ƒ Duke Energy Ohio/Kentucky – Transmission Formula – Docket No. ER12-91 ƒ ATSI – Transmission Formula – Docket No. ER21-1830-000 ƒ Atlantic City Electric Company – Transmission Formula – Docket No. ER09-1156 ƒ Public Service Electric & Gas Company – Transmission Formula – Docket No. ER09-1257 ƒ Potomac Appalachian Transmission Highline – Transmission Formula – Docket No. ER08-386 ƒ Cleco Power LLC – Transmission Formula – Docket No. ER13-2379 ƒ Potomac Electric Power Company – Transmission Formula – Docket No. ER09-1159 ƒ PECO Energy Company – Transmission Formula – Docket No. ER17-1519 ƒ MAIT – Transmission Formula – Docket Nos. ER17-211
ƒ AEP East (11 OpCos and TransCos) – Transmission Formula – Docket Nos. ER08-1329, ER17-405, ER17-406 ƒ AEP West (4 OpCos and TransCos) – Transmission Formula – Docket Nos. ER18-194, ER18-195 ƒ Public Service Company of Colorado – Transmission Formula – Docket No. ER12-1589 ƒ Big Rivers Energy Corporation – Transmission Formula – Docket No. ER19-1187 ƒ Jersey Central Power & Light – Transmission Formula – Docket Nos. ER24-2247, ER20-227 ƒ SouthFirst Energy – Transmission Formula – Docket No. ER21-253 ƒ KatCo – Transmission Formula – Docket No. ER25-2530








  

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Item 10 Page 47 of 262
Jessica Rozier
Principal
NewGen Strategies and Solutions, LLC 3
Testimony Experience
ƒ Duke Energy Progress Inc. – Docket No. ER17-1553-001
ƒ PECO Energy Company – Docket No. ER17-1519-001
ƒ Alaska Railbelt Transmission Organization – Docket No. TA1-8001 RTO 







  

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Item 10 Page 48 of 262

JAMES SHAY GARREN
Senior Manager
Economics | Strategy | Stakeholders | Sustainability
www.newgenstrategies.net

CONTACT
225 Union Boulevard, Suite 450,
Lakewood, CO 80228
[email protected]
www.newgenstrategies.net

EDUCATION
Bachelor of Arts in Literature and
Philosophy, Marlboro College
Certified Depreciation Professional,
Society of Depreciation Professionals

KEY EXPERTISE
Depreciation Studies and Analysis
Expert Witness Testimony and
Regulatory Filings
Rate Case Support and Strategy
Revenue Requirement and Cost-ofService Analysis
Rate Design and Cost Allocation

SOFTWARE EXPERIENCE
Microsoft Suite: Excel, Word
Adobe: Acrobat
Snavely King: SCIAS Depreciation
Analysis Software
Mr. James Garren joined NewGen as a Senior Manager in October 2025. He provides expert witness testimony with a specialized focus on depreciation. He supports clients and project teams through both quantitative and qualitative analysis, the preparation of client presentations, and case management. While his primary expertise lies in depreciation studies, Mr. Garren has also prepared exhibits related to revenue requirements, cost allocation, rate design, and rate of return in regulatory proceedings. In addition, he has assisted in the preparation of valuation studies for municipal water utilities.

Mr. Garren is a member of, and has been made a Certified Depreciation Professional, by the Society of Depreciation Professionals. In addition, Mr.

Garren has attended the National Association of Regulated Utility Commissioners’ Rate School.

RELEVANT EXPERIENCE
Core Competencies Overview
Mr. Garren has extensive experience providing expert witness testimony and analytical support in regulatory proceedings, with a primary focus on depreciation and cost recovery mechanisms. His work includes performing independent depreciation studies, reviewing and analyzing filings, drafting data requests, and developing settlement positions through the adjustment of depreciation parameters.

He has prepared direct and rebuttal testimony, assisted in cross-examination preparation, and provided live testimony before regulatory commissions. Mr.

Garren’s experience also encompasses supporting clients through all stages of rate case proceedings, including discovery, testimony preparation, settlement negotiations, and the development of briefs and exhibits.

In addition to his depreciation expertise, Mr. Garren has contributed to analyses involving revenue requirements, cost allocation, rate design, and rate of return.

He has also participated in valuation studies for municipal water utilities, combining both quantitative and qualitative approaches to deliver comprehensive analytical support.








  

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Item 10 Page 49 of 262

JAMES SHAY GARREN
Senior Manager
Thoughtful Decision Making for Uncertain Times 2
Regulatory Experience
 Federal Energy Regulatory Commission  Maryland Public Service Commission  Arizona Corporation Commission  New Jersey Board of Public Utilities  Barbados Fair Trade Commission  North Dakota Public Service Commission  Colorado Public Service  Pennsylvania Public Utilities Commission  Delaware Public Service Commission  South Dakota Public Utilities Commission  Georgia Public Service Commission  Utah Public Service Commission  Hawai’i Public Utilities Commission  West Virginia Public Service Commission  Kansas Corporation Commission
Expert Testimony and Consulting in Rate Proceedings
 Atlantic City Electric Company – Docket No. ER22-
2200 (Depreciation)
 Baltimore Gas and Electric Company – Docket No.

ER20-1929 (Depreciation)
 Delmarva Power Company – Docket No. ER22-
2201 (Depreciation)
 Jersey Central Power & Light Company – Docket
No. ER20-227-000 (Depreciation)
 System Energy Resources – Docket No. ER22-736-
000 (Depreciation)
 Pacific Gas and Electric Company – Docket No.

ER17-2154-000 (Depreciation)
 Potomac Electric Power Company – Docket No.

ER21-83 (Depreciation)
State Commission Utility Cases
Arizona Corporation Commission:
 Tucson Electric Power Company – AZ KCC Docket No, E-01933A-19-0028 Barbados Fair Trade Commission:
 Barbados Light and Power Company – Docket No. FTC-01/2021 BL&P-RRA-20211004 Colorado Public Utilities Commission (On Behalf of Wholesale Customer Clients):
 Public Service Company of Colorado – Proceeding No. 16A-0231E Delaware Public Service Commission (On Behalf of Wholesale Customer Clients):
 Suez Water Delaware Inc. – DE Docket No. 19-0615
Hawai’i Public Utilities Commission:
 Hawai’i Electric, Hawai’i Electric Light, and Maui Electric – Docket No. 2016-0431 Kansas Corporation Commission:
 Kansas Gas Service – KS KCC Docket No. 18-KGSG-560-RTS  Empire District Electric Co. – KS KCC Docket No. 19-EPDE-223-RTS Maryland Public Service Commission:
 Delmarva Power and Light Company – MD Case Nos. 9670, 9424 







  

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Item 10 Page 50 of 262

JAMES SHAY GARREN
Senior Manager
NewGen Strategies and Solutions, LLC 3
 Columbia Gas Company – MD Case Nos. 9664, 9480, 9447
 Potomac Edison Company – Maryland Case No. 9490
 Pepco Electric Company – MD Case No. 9385, 9702
 Baltimore Gas and Electric Company – MD Case No. 9355, 9692 New Jersey Board of Public Utilities:
 Public Service Gas and Electric Company – NJ BPU Docket Nos. ER23120924 and GR23120925  New Jersey American Water Company – NJ BPU Docket Nos. WR24010057  New Jersey Natural Gas Company – NJ BPU Docket No. GR24010071  Aqua New Jersey – NJ BPU Docket No. WR24010057
 Elizabethtown Gas Company – NJ BPU Docket No. GR24020158  Rockland Electric Company – NJ BPU Docket Nos. ER21050823, ER19050552, ER13111135  New Jersey Natural Gas – NJ BPU Docket No. GR21030679  Suez Water New Jersey – NJ BPU Docket Nos. WR20110729, WR18050593  South Jersey Gas Company – NJ BPU Docket No. GR20030243  Jersey Central Power & Light Company – NJ BPU Docket No. ER 20020146  Elizabethtown Gas Company – NJ BPU Docket Nos GR19040486, GR16090826  Public Service Electric and Gas Company – NJ BPU Docket No. ER18010029 & GR18010030  New Jersey American Water – NJ BPU Docket No WR17090985 North Dakota Public Service Commission:
 Northern States Power – ND OSC Case No. PU-20-441
Pennsylvania Public Utilities Commission:
 UGI Utilities Inc, Electric and Gas Divisions – PA PUC Docket Nos. R-2017-2640058, R-2016-2580030, 2015- 2518439
 First Energy Companies – PA PUC Docket Nos. R-2016-2537349, 2537352, 2537355, 2537459 South Dakota Public Utilities Commission:
 Montana Dakota Utilities – SD PUC Docket Nos. EL23-020 and NG23-025  Northwestern Energy – SD PUC Docket No. EL23-016
Utah Public Service Commission:
 Rocky Mountain Power – UT PSC Docket No. 18-035-036
West Virginia Public Service Commission:
 Mountaineer Gas – Case No. 15-0048-G-D








  

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Item 10 Page 51 of 262
barr.com

EXPERIENCE
Tom has more than four decades of experience serving as principal and project manager for electrical engineering projects. He has an extensive background in designing and analyzing low-, medium-, and high-voltage power generation, transmission, and distribution systems including utility, industrial, and commercial systems (600V to 500kV). He has specialized expertise in protective relaying and communication systems. Tom focuses on larger substation, generation, and transmission/distribution projects. Prior to joining Barr, Tom founded Exponential Engineering Company in 1993, leading that firm to provide responsive and personalized service to the electric power industry.

An active and dedicated member of the clean energy technology and renewable energy sectors, Tom served as co-chair of the Colorado Clean Energy Cluster from 2015–2017. He stays at the forefront of technological innovation to integrate new technologies into existing systems. He is passionate about keeping power affordable and sustainable by moving existing electric and energy systems toward more distributed, local microgrids, storage and local generation. A leader in the power industry, he is committed to teaching and mentoring clients and employees.

Colorado Springs Utilities; Kelker Substation; Colorado Springs, CO; lead electrical engineer
x Provided physical design of a substation to replace an existing installation on the same property. The substation includes a fivebay 230kV breaker-and-a-half bus, a six-bay 115kV breaker-anda-half bus, four 230/115kV 280MVA transformers, one 230-

34.5kV 104MVA transformer, and two 230-13.2kV 37MVA
transformers.

Title

TOM GHIDOSSI,
PE
Vice President, Senior Electrical Engineer
Education
MBA, University of Colorado, 1981
BS, Electrical Engineering, Minor
in business administration,
University of Colorado, 1979
Registration
Professional Engineer: Alaska,
California, Colorado, Florida,
Indiana, Louisiana, Michigan,
Nebraska, New Mexico, Puerto
Rico, Texas, Utah, Washington,
Wisconsin, and Wyoming
Digital skill set
ASPEN; SKM; ETAP; Milsoft; PLSCADD; Mathcad








  

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Item 10 Page 52 of 262
barr.com

TOM GHIDOSSI, PE
Loveland Water & Power; Master Plan; Loveland, CO; lead electrical engineer x Worked on the ten-year master plan for the distribution utility, including system modeling for load growth and capital construction projects; capital expenditure estimating and scheduling; review of feeder ties and operational philosophies.

DKMT Associates; Utility Evaluation and Strategic Plan; Independence, MO; project manager and lead electrical engineer
x Evaluated existing generation, transmission, substation, and distribution assets, including condition assessment. Also developed a strategic plan to predict future capital and operating requirements and rate impacts.

Work before Barr
Various clients; various projects; U.S.; project manager and principal electrical engineer x Provided protective relaying services for more than four decades for all protective relaying systems manufactured from the 1940s to the present. Work includes design, application, specification, setting, testing, maintenance, and training of personnel. Specialized in microprocessor relaying systems for generation interconnections, large generators, and transmission lines.

Various clients; various projects; U.S.; project manager and principal electrical engineer x Managed and designed numerous transmission line projects (69kV–345kV) across the U.S. for municipal and rural electric utilities. Responsibilities include electrical design, structure staking, design data preparation, structure mechanical analysis, conductor loading, equipment specification, and construction administration and observation.

Various clients; various projects; U.S.; project manager and principal electrical engineer x Developed power system planning studies that range from two-year construction work plans to 20-year long range plans. Work includes loadflow, short circuit, protective device coordination, sectionalizing, and stability studies for overhead and underground systems through 345kV. More complex analyses include feasibility, system impact, and facilities studies for transmission and distribution interconnection of generation systems ranging from 1MW to 300MW; arc flash hazard analyses for enclosed equipment and open-air substations; and modeling and analysis for starting large motors connected to weak systems.

Various clients; various projects; U.S.; project manager and principal electrical engineer x Designed outdoor, indoor, and GIS substation projects (4.16kV–500kV), including station arrangement, grounding, lightning protection, structures and bus, equipment specifications, protective relaying and control schemes, SCADA interface, testing, and checkout. His projects encompass not only new substations but conversions, expansions, and voltage upgrades.

Various clients; various projects; intermountain region of the U.S.; project manager and principal electrical engineer
x Provided design and field staking for distribution lines (5kV–34.5kV), both overhead and underground. Work includes upgrades/replacements, conversion to three-phase, and new installations. 







  

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Item 10 Page 53 of 262
barr.com

TOM GHIDOSSI, PE
Various clients; various projects; intermountain region of the U.S.; project manager and principal electrical engineer
x Planned and performed field data collection with GPS, constructed GIS databases, and provided finished electric utility maps. Includes development of field mapping databases for GPS units, coordination of field crews, data validation, and conversion from various database formats.

Various clients; various projects; U.S.; project manager and principal electrical engineer x Provided a range of generation interconnection services for renewable and battery storage projects ranging from small (1MW) to large (300MW) facilities. Work included creating interconnection applications, performing system impact and facility studies, designing distribution and transmission interconnections, and creating protective relay settings for interconnection protection.

Various clients; various projects; U.S.; project manager and principal electrical engineer x Performed distribution and transmission severance planning and analysis; cost estimation using systeminventory data; and field-observation condition assessments for severance planning. Work includes overseeing the analysis process, which includes conducting load flow and voltage drop studies for base systems as well as under N-1 conditions.

Various clients; various projects; U.S.; principal electrical engineer x Trained electrical engineers, staff, technicians, and line workers through classes and seminars across the U.S. for 40-plus years, in both academic and professional settings. Includes providing complete training in protective relaying application, setting, testing, and maintenance. Relaying topics range from vintage electromechanical through solid-state to microprocessor devices and includes substation, transmission, generation, distribution, and motor protection. Other seminar topics include transmission-line design and applying PLS-CADD and PLS-POLE analysis software.

Various clients; various projects; U.S.; principal electrical engineer x Provided expert testimony related to the design and performance of utility transmission, distribution, and substation facilities. Includes testifying before state utility regulators, arbitration boards, courts of law, city councils, and utility boards.

Affiliations x Institute of Electrical and Electronics Engineers (IEEE) life member x National Society of Professional Engineers (NSPE)
x Tau Beta Pi Engineering Honor Society








  

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Item 10 Page 54 of 262
barr.com

TOM GHIDOSSI, PE
Training x Westinghouse Protective Relay School, 1983
x Basler Generator Protection, 2000
x Advanced Protective Relaying, University of Wisconsin, 2002 x University of Wisconsin Design of Transmission Line Structures and Foundations, 2003
x WindMil Work Plan, 2004
x NESC Seminar, 2006
x APPA Arc Flash Seminar, 2016
Publications and
presentations
x Fundamentals of Protective Relaying (two-to-four-day course), 2006, 2009, 2015, 2019, 2024








  

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Item 10 Page 55 of 262
APPENDIX B:

FORMS
CITY OF VERNON RFP:

FINANCIAL AND TECHNICAL REVIEW OF SOUTHERN

CALIFORNIA EDISON (SCE) TRANSMISSION RATE

AND WHOLESALE REVENUE REQUIREMENTS








  

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Item 10 Page 56 of 262
March 2013

AFFIDAVIT OF NON-COLLUSION BY CONTRACTOR

STATE OF CALIFORNIA )
) ss

COUNTY OF LOS ANGELES )
_______________________________________________________________, being first duly sworn deposes and says that he/she is ______________________________________________________________________ (Insert "Sole Owner", "Partner", "President, "Secretary", or other proper title) of______________________________________________________________________________________ (Insert name of bidder)
who submits herewith to the City of Vernon a bid/proposal; That all statements of fact in such bid/proposal are true; That such bid/proposal was not made in the interest of or on behalf of any undisclosed person, partnership, company, association, organization or corporation; That such bid/proposal is genuine and not collusive or sham; That said bidder has not, directly or indirectly by agreement, communication or conference with anyone attempted to induce action prejudicial to the interest of the City of Vernon, or of any other bidder or anyone else interested in the proposed contract; and further That prior to the public opening and reading of bids/proposals, said bidder:
a. Did not directly or indirectly, induce or solicit anyone else to submit a false or sham bid/proposal;
b. Did not directly or indirectly, collude, conspire, connive or agree with anyone else that said bidder or anyone else would submit a false or sham bid/proposal, or that anyone should refrain from bidding or withdraw his/her bid/proposal;
c. Did not, in any manner, directly or indirectly seek by agreement, communication or conference with anyone to raise or fix the bid/proposal price of said bidder or of anyone else, or to raise or fix any overhead, profit or cost element of his/her bid/proposal price, or of that of anyone else; d. Did not, directly or indirectly, submit his/her bid/proposal price or any breakdown thereof, or the contents thereof, or divulge information or data relative thereto, to any corporation, partnership, company, association, organization, bid depository, or to any member or agent thereof, or to any individual or group of individuals, except the City of Vernon, or to any person or persons who have a partnership or other financial interest with said bidder in his/her business.

I certify under penalty of perjury that the above information is correct By:______________________________________ Title:________________________________ Date:____________________________________
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Item 10 Page 57 of 262
THANK YOU!
225 Union Boulevard, Suite 450, Lakewood, CO 80228
Phone: (720) 633-9496
Email: [email protected] www.newgenstrategies.net 







  

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Item 10 Page 58 of 262
NewGen Strategies and Solutions, LLC
Services Agreement

______________________

EXHIBIT B

SCHEDULE








  

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Item 10 Page 59 of 262
Thoughtful Decision Making for Uncertain Times

CITY OF VERNON

FINANCIAL AND TECHNICAL REVIEW OF SOUTHERN CALIFORNIA EDISON

TRANSMISSION RATE AND WHOLESALE REVENUE REQUIREMENTS

FEES AND COSTS
NewGen proposes to conduct the enclosed Scope of Work and Services on a time and materials basis for an estimated not-to-exceed budget of $25,000, which includes all estimated labor and expenses, including reasonable travel-related expenses. Please note this cost estimate does not include intervention support for the potential FERC wholesale transmission filing. That budget estimate will be developed in Task 3 and is expected to be executed separate from this deliverable.

Task 3: FERC-Related Support
NewGen has extensive experience supporting clients and utilities intervening in FERC wholesale transmission filings and settlement conferences. We will apply our experience gained from decades of FERC filings to estimate the time and expenses needed to support VPU in contesting an SCE wholesale transmission filing related to the Laguna Bell substation and service to VPU.

Based on our experience with FERC filings, we will also provide a list of the key issue areas for VPU to focus on with SCE. NewGen initially expects this budget estimate to be $7,500 to support VPU in the potential FERC filing, after the Project Team has completed Tasks 1, 2, and 4.

NewGen’s current billing rates by position for 2026 are summarized in the table below.

NewGen Strategies and Solutions
2026 Billing Rates
Position Hourly Billing Rate
Partner $305 – $455
Principal $295 – $455
Senior Manager $250 – $295
Manager $220 – $250
Senior Consultant $200 – $220
Consultant $185 – $200
Administrative Services $145
Note: Billing rates are subject to change based on annual reviews and salary increases. 







  

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Item 10 Page 60 of 262
NewGen Strategies and Solutions, LLC
Services Agreement

______________________

EXHIBIT C

EQUAL EMPLOYMENT OPPORTUNITY

PRACTICES PROVISIONS
A. Contractor certifies and represents that, during the performance of this Agreement, the contractor and each subcontractor shall adhere to equal opportunity employment practices to assure that applicants and employees are treated equally and are not discriminated against because of their race, religious creed, color, national origin, ancestry, handicap, sex, or age. Contractor further certifies that it will not maintain any segregated facilities.

B. Contractor agrees that it shall, in all solicitations or advertisements for applicants for employment placed by or on behalf of Contractor, state that it is an "Equal Opportunity Employer" or that all qualified applicants will receive consideration for employment without regard to their race, religious creed, color, national origin, ancestry, handicap, sex or age.

C. Contractor agrees that it shall, if requested to do so by the City, certify that it has not, in the performance of this Agreement, discriminated against applicants or employees because of their membership in a protected class.

D. Contractor agrees to provide the City with access to, and, if requested to do so by City, through its awarding authority, provide copies of all of its records pertaining or relating to its employment practices, except to the extent such records or portions of such records are confidential or privileged under state or federal law.

E. Nothing contained in this Agreement shall be construed in any manner as to require or permit any act which is prohibited by law.








  

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Item 10 Page 61 of 262
City Council Agenda Report
Meeting Date: March 3, 2026
From: Alice Hui, Director of Finance/City Treasurer
Department: Finance
Submitted by: Alice Hui, Director of Finance/City Treasurer Subject
Fiscal Year 2025-26 Mid-Year Financial Update
Recommendation
Adopt Resolution No. 2026-007 authorizing and approving mid-year budget appropriations and amending the Annual Operating and Capital Budget for Fiscal Year 2025-26.

Background
The Mid-Year Financial Update provides an overview of the City’s financial position at the midpoint of the fiscal year and is intended to support City Council in informed decision-making and the continued achievement of the City’s goals. As of December 31, 2025, revenues and expenditures would typically be expected to align near the 50% mark. However, the timing and recognition of certain revenues and expenditures can vary throughout the year.

At mid-year, total Citywide expenses, including non-operating costs, for the General Fund and Vernon Public Utilities (VPU) combined were at 45% of the adopted budget, while revenues were at 53%. Within the General Fund, approximately 46% of budgeted revenues had been received, compared to approximately 42% of budgeted expenditures, indicating that spending is tracking below revenues at this point in the fiscal year.

When excluding grant revenues, General Fund revenues were at 52% of the adopted budget. Grant revenues were minimal at 5%, as most capital projects have not yet begun. On the expenditures side, General Fund salaries and benefits and maintenance and operations (M&O) were each at 47% of budget, while capital project expenditures were at 19%, reflecting the early stages of project implementation.

VPU revenues were at 55% of budget, while expenses were at 47% at the mid-year mark. Staff evaluated the trajectory of actual versus budgeted results and are providing recommendations to appropriate additional funds for unforeseen circumstances that have arisen since the normal course of budget setting during the prior fiscal year. Pursuant to City Charter Chapter 8.5, Council may amend or supplement the budget by the affirmative vote of a majority of the members of the Council.

General Fund
With the completion of the City’s audit for Fiscal Year 2024-25, the General Fund closed the year with a total fund balance of $54,244,152, of which $26,619,588 is available as unassigned fund balance:

FY 2024-25 Audited Final
General Fund Revenues $ 80,494,678
General Fund Expenditures (75,535,864)
Surplus $ 4,958,814
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Item 11 Page 1 of 20
At the adoption of the FY 2024-25 budget on June 4, 2024, the General fund was projected to have a deficit of $7,199,568. Actual results reflected a surplus, primarily attributable to revenues exceeding projections and lower than budgeted M&O and capital outlay expenditures.

Warehouse parcel tax, utility users tax, and building permit fees each generated approximately $1 million more than anticipated. In addition, M&O actual expenditures were approximately $2.8 million below the original budgeted amount. Capital outlay expenditures totaled approximately $4 million, or $7.1 million below the original budgeted amount of $11.1 million, primarily due to the grant funded Atlantic Bridge Project, which remains in its early stages.

FY 2025-26 General Fund Projections
At the time the FY 2025-26 budget was adopted on June 3, 2025, the General Fund was projected to end the year with a surplus of $1.9 million. Total budgeted revenues were $92 million, including $12.2 million in grant revenues, while expenditures, net of estimated savings, were budgeted at $90 million. These estimated savings were based on historical trends, which typically reflect vacancy savings of approximately 5% and M&O savings of approximately10%.

During the current fiscal year, the City implemented a new classification and compensation plan effective July 2025. This plan was adopted after the FY 2025-26 budget was approved and was therefore not incorporated into the original budget assumptions. Based on financial data as of December 31, 2025, the anticipated vacancy savings included in the budget may be fully absorbed by the implementation of the new plan.

In addition, M&O expenditures are occurring at a slightly higher rate than in the prior year, with 47% of the budgeted expended as of December 31, 2025, compared to 46% at the same point in FY 2024-25. For context, the General Fund ended FY 2024-25 with budgetary savings of

8.6% of the original adopted budget. This information provides important context for City Council as staff continue to monitor expenditure trends and evaluate the potential need for budget adjustments.

Below is a summary of major General Fund revenue activity through the end of December. It should be noted that many revenue sources are not received evenly throughout the year, therefore, amounts received through December may not be reflective of anticipated annual totals.

FY 2025-26 Major Revenues through December
Major Sources Budgeted
Actual
through
December
Prior Year
through
December
Prior Year
Final $
Warehouse Parcel Tax $ 14,855,250 $ 6,347,452 $ 6,144,323 $ 15,020,209 Safety Parcel Tax 2,362,100 976,469 991,106 2,315,092
Utility User Tax 13,871,819 6,806,519 7,209,141 13,346,507 Sales Tax 9,126,966 5,294,626 4,516,802 9,424,389
Measure V Sales Tax 4,660,000 3,010,133 2,441,830 4,994,171 Property Tax 6,066,432 1,610,209 1,672,172 6,376,104
Business Licenses 6,232,000 3,914,694 3,988,823 5,957,917 Building Permit Fees 3,489,453 2,173,316 1,212,056 2,109,181 Plan Check Fees 750,000 1,595,833 550,612 914,073
Solid Waste Franchise Fees 1,973,848 1,085,428 1,015,997 2,003,714 In-Lieu Taxes 5,600,000 2,639,140 2,670,344 4,867,592
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Item 11 Page 2 of 20
As shown in the above table, revenues are in line with or exceeding prior year’s actual revenues through the same time period. Accordingly, no General Fund revenue-related budget adjustments are recommended at this time.

Proposed Budget Adjustments
Department staff have reviewed their respective line-item budgets and identified amendments needed to address additional expenditures through the remainder of FY 2025-26. Due to the rising costs of materials, supply chain constraints, labor related costs, and expenditures that were not known or anticipated at the time the budget was adopted, proposed adjustments are being presented to City Council to appropriate and reallocate funds within the General Fund and VPU.

Among the General Fund expenditures not anticipated at FY 2025-26 budget adoption and now included in the midyear adjustments are consulting and legal services related to the Metro Link Us Project, consulting services for a study on business tax contributions, and costs associated with efforts by the “Big 4” coalition of industrial/commercial cities. Since approval of the Memorandum of Understanding between the cities of Vernon, Commerce, Industry and Santa Fe Springs in September of 2025, the Big 4 cities have engaged consultants to assist in advancing their collective goals. Of particular importance, the Big 4 are pursuing legislative changes at the State level to increase SB1 (Road Repair and Accountability Act) allocations for each of the respective cities.

The proposed adjustments are included in Resolution No. 2026-007.

Vernon Public Utilities Forecast
Vernon Public Utilities (VPU) is committed to dependable, high-quality electric, water, natural gas, and fiber services at competitive rates and the highest standards for reliability, while also achieving California's clean energy goals. As a publicly owned utility, VPU is focused on its customers, responsible operations, and a sustainable future. VPU regularly updates its forecast to plan for customer demands, revenues, operating expenses, and capital expenditures. To that end, in Fiscal Year 2025-26, VPU continues to manage its operating expenses and its capital investment to ensure a reliable system infrastructure. Moreover, VPU continues to focus on revenue growth in its transition to clean commerce, including data centers, green hydrogen, and electrification to ensure that VPU is able to maintain utility services and infrastructure into the future as well as being self-sufficient. VPU completed the Water Cost of Service and Rate Design study and implemented an amended five-year water rate schedule that went into effect on January 1, 2026. An Electric Cost of Service and Rate Design Study will begin during this fiscal year with an expectation that it will be presented to City Council during the Fiscal Year 2026-27 budget process.

Fiscal Impact
Approval of this action would require an appropriation of $1,188,334 in the General Fund and ($1,461,160) reduction in the Electric Fund, from their respective Fund Balances as detailed in Resolution 2026-007.

Attachments

1. Resolution No. 2026-007
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Item 11 Page 3 of 20
RESOLUTION NO. 2026-007

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON

AUTHORIZING AND APPROVING MID-YEAR BUDGET

APPROPRIATIONS AND AMENDING THE ANNUAL OPERATING AND
CAPITAL BUDGET FOR FISCAL YEAR 2025-26
SECTION 1. Recitals.

A. On June 3, 2025, the City Council of the City of Vernon adopted Resolution No. 2025-013, approving the annual operating and capital budget for Fiscal Year 2025-26.

B. Changes in anticipated expenditures of the City require a revision of the appropriations for Fiscal Year 2025-26 and amendment of the budget by the affirmative vote of a majority of the members of the City Council, pursuant to Vernon Charter Chapter

8.5. C. There are sufficient funds in anticipated revenues and City-wide fund balance to cover the proposed budget adjustments.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS:

SECTION 2. The City Council of the City of Vernon finds and determines that the above recitals are true and correct.

SECTION 3. Pursuant to Chapter 8.5 of the Charter of the City of Vernon, a majority of the members of the City Council hereby approves the mid-year budget appropriations in the table below.

Fund Department/
Division
Revenue
Expense GL Account Description Adjustment Amount
011
General
105-City
Administration
Expense 011-010-105-529215
Professional
Services - Other
Metro Link
project
advocacy
$75,000
011
General
105-City
Administration
Expense 011-010-105-529215
Professional
Services - Other
Business tax
contribution
study
$35,000
011
General
115-City
Attorney
Expense 011-010-115-529200
Professional
Services - Legal
Metro Link
pending
litigation
$250,000
011
General

120-Human
Resources
Expense 011-010-120-529220
Professional
Services -
Administration
Workplace
investigation
services
$21,900
011
General
125-City Clerk Expense 011-010-125-529215
Professional
Services - Other
Records
storage and
retrieval
$75,000
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Item 11 Page 4 of 20
Resolution No. 2026-007

_______________________
Fund Department/
Division
Revenue
Expense GL Account Description Adjustment Amount
011
General
130-Finance Expense 011-010-130-529010
Bank Service Fees
Payment
processing
fees
$80,833
011
General

130-Finance Expense 011-010-130-529215
Professional
Services - Other
Sales tax
audit and
reporting
services
$12,000
011
General

130-Finance Expense 011-010-130-529225
Professional
Services – Technical
Ballot
measure
outreach
consulting
$55,300
011
General

150-Industrial
Development
Expense 011-010-150-525000
Advertisement/
Promotion
Big 4 I.CON
West and
Business
Summit
$24,500
011
General
150-Industrial
Development
Expense 011-010-150-529215
Professional
Services - Other
Big 4
consulting
services
$177,125
011
General

200-Health Expense 011-695-200-523025
Grant-Funded
Expense
Return
MEHKO
grants funds
to CDPH
$30,676
011
General

300-Police Expense 011-030-300-501020
Salaries - O.T.

Additional
overtime due
to IOD,
staffing, etc.
$290,000
011
General
300-Police Expense 011-030-300-660010
Capital Equipment -
Auto
Replace
totaled
motorcycle
$45,000
011
General
410-City
Housing
Expense 011-040-410-529215
Professional
Services - Other
Property
management
services
$16,000
General Fund Subtotal $1,188,334
055
Electric
575-Customer
Service
Revenue 055-450-575-450012
Discount on Sales
Higher
discount on
sales
$2,350,000
055
Electric
585-
Engineering
Expense 055-050-585-660000
Capital Outlay
Fiber room
upgrades
$325,000
055
Electric
590-Resource
Management
Expense 055-050-590-520150
Energy - Other
Lower energy
costs
($2,400,000)
055
Electric
590-Resource
Management
Expense 055-050-590-520154
Renewable Energy
Credit
Required
REC
purchases
$2,400,000
055
Electric
590-Resource
Management
Revenue 055-450-590-450015
RA Capacity Sales
Increased RA
capacity sales
($4,136,160)
Electric Fund Subtotal ($1,461,160)
056
Natural
Gas
600-Gas Expense 056-060-600-525022
Natural Gas
Transport Cost
Lower natural
gas transport
costs
($150,000)
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Item 11 Page 5 of 20
Resolution No. 2026-007

_______________________
Fund Department/
Division Fund GL Account Description Adjustment Amount
056
Natural
Gas
600-Gas Expense 056-060-600-529000
Repairs &
Maintenance
Increased
repairs costs
$150,000
Natural Gas Subtotal $0
Grand Total ($272,826)
SECTION 4. The Annual Operating and Capital Budget for Fiscal Year 2025-26, adopted by Resolution No. 2025-013, is hereby amended to include the mid-year budget appropriations.

SECTION 5. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end, the provisions of this Resolution are declared to be severable.

SECTION 6. The City Clerk, or Deputy City Clerk, shall certify the passage and adoption of this resolution and enter it into the book of original resolutions.

APPROVED AND ADOPTED March 3, 2026.
________________________
LETICIA LOPEZ, Mayor

ATTEST:

GENOVEVA ROCHA, City Clerk
APPROVED AS TO FORM:

ZAYNAH MOUSSA-MILWARD,
City Attorney
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Item 11 Page 6 of 20
Resolution No. 2026-007

_______________________

CERTIFICATION

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.

CITY OF VERNON )
I do hereby certify that the attached is a true copy of Resolution No. 2026-007 that was passed and adopted at the Regular Meeting held on March 3, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
__________________________
GENOVEVA ROCHA, City Clerk
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Item 11 Page 7 of 20
Fiscal Year 2025-26 Mid-Year Financial Update
March 3, 2026
March 3, 2026
Item 11
Staff Presentation
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• General Fund FY 2024
-
25 Audited Final
• General Fund Mid-Year
Trends
• General Fund Mid-Year
Budget Adjustment
Requests
• VPU Mid-Year Trends
• VPU Mid-Year
Adjustment Requests
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Item 11 Page 9 of 20
FY 2024-25 General Fund
(Audited Final)
General Fund
Adopted
Budget
Revised
Budget Actual
Revenues $ 77,626,186 $ 77,626,186 $ 80,494,678
Expenditures* 84,825,754 86,364,112 (75,535,864)
Surplus $ (7,199,568) $ (8,737,926) $ 4,958,814
* Capital outlay expenditures totaled approx. $4M, or $7.1M below budgeted amount of $11.1M, primarily due to the grant funded Atlantic Bridge Projects, which remains in its early stages
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Item 11 Page 10 of 20
FY 2025-26 General Fund
at December 31, 2025
Adopted
Budget Actual % YTD
Revised
Budget
Revenues $ 79,881,712 $ 41,376,390 52% $ 79,881,712
Grants 12,128,448 659,346 5% 12,128,448
Total Revenues 92,010,160 42,035,733 46% 92,010,160
Salaries & Benefits 42,818,188 20,181,684 47% 43,108,188 Maintenance & Operations 36,592,858 17,043,704 47% 37,446,192 Capital Projects & Equipment 15,548,405 2,930,594 19% 15,593,405 Total Expenditures* $ 94,959,451 $ 40,155,982 42% $ 96,147,785 * Estimated Vacancy savings of 5% ($1.2M) and M&O savings of 10% ($3.65M) were assumed during budget adoption
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Item 11 Page 11 of 20
FY 2025-26 Major Revenues through December
Major Sources Budgeted
Actual through
December % YTD
Prior Year
through
December
Prior Year
Final $
Warehouse Parcel Tax $ 14,855,250 $ 6,347,452 43% $ 6,144,323 $ 15,020,209 Safety Parcel Tax 2,362,100 976,469 41% 991,106 2,315,092 Utility User Tax 13,871,819 6,806,519 49% 7,209,141 13,346,507 Sales Tax 9,126,966 5,294,626 58% 4,516,802 9,424,389
Measure V Sales Tax 4,660,000 3,010,133 65% 2,441,830 4,994,171 Property Tax 6,066,432 1,610,209 27% 1,672,172 6,376,104 Business Licenses 6,232,000 3,914,694 63% 3,988,823 5,957,917 Building Permit Fees 3,489,453 2,173,316 62% 1,212,056 2,109,181 Plan Check Fees 750,000 1,595,833 213% 550,612 914,073
Solid Waste Franchise Fees 1,973,848 1,085,428 55% 1,015,997 2,003,714 In-Lieu Taxes 5,600,000 2,639,140 47% 2,670,344 4,867,592 .
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General Fund Mid-Year Adjustments
City Administration
• $75,000 increase to Professional Services – Other for Metro Link Project Advocacy
• $35,000 increase to Professional Services – Other for Business Tax Contribution Study
City Administration - Industrial Development
• $24,500 increase to Advertisement/Promotion for BIG 4 I.CON West and Business Summit
• $177,125 increase to Professional Services – Other for BIG 4 Consulting Services
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General Fund Mid-Year Adjustments
City Attorney
• $250,000 increase to Professional Services – Legal for Metro Link Pending Litigation
Human Resources
• $21,900 increase to Professional Services – Admin for Workplace Review Services
City Clerk
• $75,000 increase to Professional Services – Other for Records Storage & Retrieval
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Item 11 Page 14 of 20
General Fund Mid-Year Adjustments
Finance
• $80,833 increase to Bank Service Fees for Payment Processing Fees • $12,000 increase to Professional Services – Other for Sales Tax Audit & Reporting Services
• $55,300 increase to Professional Services – Technical for Ballot Measure Outreach & Consulting
Health
• $30,676 increase to Grant-Funded Expense for the return of MEHKO grants funds to CDPH
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Item 11 Page 15 of 20
General Fund Mid-Year Adjustments
Police
• $290,000 increase to Salaries – OT for Additional overtime due to IOD, staffing, etc.
• $45,000 increase to Capital Equipment – Auto for the Replacement of totaled motorcycle (will be reimbursed from insurance)
Public Works – City Housing
• $16,000 increase to Professional Services – Other for Property Management Services
Total appropriation of $1,188,334 in General Fund from Fund Balance .
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Item 11 Page 16 of 20
FY 2025-26 Enterprise Funds
at December 31, 2025
Adopted
Budget Actual % YTD
Revised
Budget
Revenues
Electric $ 279,740,565 $ 159,251,861 57% $ 281,526,725
Gas 16,097,000 6,426,466 40% 16,097,000
Water 13,787,500 5,504,544 40% 13,787,500
Fiber Optic 511,000 201,840 39% 511,000
Total Revenues $ 310,136,065 $ 171,389,711 55% $ 311,922,225 Salaries & Benefits
Electric $ 16,732,598 $ 7,833,880 47% $ 16,732,598
Gas 1,065,267 493,795 46% 1,065,267
Water 2,721,955 1,111,591 41% 2,721,955
Fiber Optic 18,002 8,429 47% 18,002
Total Salaries & Benefits $ 20,537,822 $ 9,447,695 46% $ 20,537,822 .
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Item 11 Page 17 of 20
FY 2025-26 Enterprise Funds
at December 31, 2025
Adopted Budget Actual % YTD Revised Budget
Maintenance & Operations (M&O)
Electric $ 135,897,838 $ 63,968,812 47% $ 135,897,838
Gas 16,793,000 3,067,558 18% 16,793,000
Water 5,846,532 1,800,260 31% 5,846,532
Fiber Optic 526,433 261,089 50% 526,433
Total M&O $ 159,063,803 $ 69,097,719 43% $ 159,063,803
Capital Outlays and Non-Operating
Transfers
Electric – Capital Projects & Op T/O $ 29,954,363 $ 6,028,940 20% $ 30,279,363 Electric – Customer Funded Projects 26,754,122 5,251,169 20% 26,754,122 Gas 375,000 76,013 20% 375,000
Water 4,070,470 778,775 19% 4,070,470
Fiber Optic 150,000 23,341 16% 150,000
Total Cap Outlays & Non-Op $ 61,303,955 $ 12,158,238 20% $ 61,628,955 Debt Service $ 70,245,478 $ 56,724,397 81% $ 70,245,478 . .

Item 11 Page 18 of 20
Enterprise Funds Mid-Year Adjustments
Electric
• $1,786,160 net increase to Revenues for Increased RA Capacity Sales & Higher Discount on Sales
• $325,000 increase to Capital Outlay for Fiber Room Upgrades • Reallocation of $2,400,000 from Energy – Other due to lower energy costs to Renewable Energy Credit due to Required REC purchases ($0 net)
Gas
• Reallocation of $150,000 from Natural Gas Transport Cost to Repairs & Maintenance due to increased repairs costs ($0 net)
Total reduction of $1,461,160 in the Electric Fund
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Item 11 Page 19 of 20
Questions?
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Item 11 Page 20 of 20
City Council Agenda Report
Meeting Date: March 3, 2026
From: Genoveva Rocha, City Clerk
Department: City Clerk
Submitted by: Genoveva Rocha, City Clerk
Subject
Potential Local Sales Tax for Placement on a Special Election to be held June 2, 2026 Recommendation
A. Receive and file a presentation on a potential local 1/4 cent (1/4%) sales tax; B. Take no action on a local sales tax measure and oppose County legislative efforts; OR C. Adopt Resolution No. 2026-008 Declaring a fiscal emergency pursuant to Article XIII C of the Constitution of the State of California; calling and giving notice of the holding of a Special Municipal Election to be held on Tuesday, June 2, 2026, for the purpose of submitting to the qualified voters of a proposed ordinance levying a local transaction and use tax (sales tax) to the voters at said election;
D. Adopt Resolution No. 2026-009 Requesting the Board of Supervisors of the County of Los Angeles consolidate the Special Municipal Election with the Statewide Direct Primary Election to be held on Tuesday, June 2, 2026, pursuant to Elections Code section 10403; and E. Direct the City Clerk to transmit a copy of the measure to the City Attorney for preparation of the impartial analysis;
F. Adopt Resolution No. 2026-010 Providing for the filing of primary and rebuttal arguments and setting rules for filing of written arguments regarding a City measure to be submitted at the June 2, 2026, Special Municipal Election; and
G. If desired, determine the authors of arguments and rebuttals.

Background
On February 17, 2026, the City Council received an update on the proposed Los Angeles County Half-Cent Sales Tax Ballot Measure, set for the June 2, 2026 Statewide Direct Primary Election, and its impact on Vernon. The measure asks voters to increase the County sales tax by half a cent to offset federal funding cuts to public health services. If approved, the tax is expected to generate about $1 billion annually for five years. The ballot measure also seeks a legislative exemption from the current 2% statutory cap on county/local sales taxes, preserving a quarter percent in sales-tax capacity.

In Vernon, the cumulative sales tax rate is 10.50 %, which consists of the statewide sales tax rate of 7.25 % and county/local taxes totaling 3.25 %. Although California Revenue and Taxation Code Section 7251.1 sets the maximum county/local transactions and use tax—or statutory cap—at two percent (2%), several countywide sales tax measures have been authorized through special legislation exempting them from that cap.

There was discussion regarding the effectiveness of the County measures and the fairness of local returns compared to total tax resources generated within individual jurisdictions. Given concerns regarding the effectiveness of the County measures and the oncoming sunset on the City’s Utility Users Tax (UUT) and Public Safety Parcel Tax, it was discussed that it would be prudent for the City to preserve local control over tax revenues by pursuing its own one quarter cent (¼ %) sales tax measure, rather than relying on future countywide programs that may provide only limited local return or benefit. .
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The City Council discussed options and directed staff to table the discussion and provide additional financial impact details and the necessary resolutions and ordinances for a potential Special Election on a local sales tax to be discussed and considered at the March 3, 2026, Regular City Council meeting.

Subsequently, a similar update was provided to the Vernon Business and Industry Commission at a Special Meeting on February 19, 2026. Commissioners discussed their concerns and understanding of keeping local tax dollars in Vernon, as well as the City's messaging plan should the ballot measure move forward. They inquired about the sales tax breakdown across different types of businesses, including wholesale and retail, and also discussed potential uses of the new revenue including financial incentives for existing local businesses. Additionally, the Commissioners inquired about the cost of placing the proposed ballot measure on the City's next General Municipal Election in April 2027.

City Council Action
At the March 3, 2026 Meeting, Council may decide to take no action on a local sales tax measure and oppose County legislative efforts or move forward with a local sales tax measure.

Assembly Bill 1768 (AB 1768)
Introduced on February 9, 2026, AB 1768 would authorize the County of Los Angeles to impose a transactions and use tax (local sales tax) at a rate of up to 0.5% for general and special purposes, subject to voter approval, and would authorize said tax to exceed the 2% statutory cap on local sales tax referenced above. On February 23, 2026, the bill was referred to the Committee on Legislative Government and the Committee on Revenue and Taxation for further consideration. Council may direct staff to oppose AB 1768.

Should the City Council decide to move forward by submitting an ordinance levying a local transaction and use tax (sales tax) to the voters, the following resolutions would need to be adopted:
• Resolution No. 2026-008 – Calling a Special Municipal Election on June 2, 2026, Declaring a Fiscal Emergency, and Calling for the Placement of a Sales Tax Measure on the Ballot (must be adopted by a unanimous vote of the City Council) • Resolution No. 2026-009 – Requesting County Services
• Resolution No. 2026-010 – Providing for the filing of written arguments and rebuttals Resolution No. 2026-008 - Calling a Special Municipal Election, Declaring a Fiscal Emergency, and Calling for the Placement of a Sales Tax Measure on the Ballot California Constitution Article XIII C, section 2 (b) requires that any proposed general tax be approved by a majority of the voters at a regularly scheduled general municipal election for the City Council, “except in cases of emergency declared by a unanimous vote of the governing body.” Because the City’s next General Municipal Election is not until April 2027, to move forward with a local sales tax ballot measure, the City Council would have to declare a fiscal emergency and call a Special Municipal Election. Resolution No. 2026-008 calls and gives notice of holding a Special Municipal Election on Tuesday, June 2, 2026, to coincide with the Statewide Direct Primary Election, declares a fiscal emergency, and calls for the placement of a Sales Tax Measure on the Ballot. Adoption of Resolution No. 2026-008 requires a unanimous vote of the City Council.

Declaration of a Fiscal Emergency
The declaration of a Fiscal Emergency constitutes a Material Event under applicable continuing disclosure requirements. Full disclosure would be necessary to ensure transparency and to .
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Item 12 Page 2 of 54
provide investors with comprehensive context regarding the circumstances and rationale for the action. At this time, staff does not anticipate a direct impact on the City’s credit ratings. However, the disclosure may prompt the rating agencies to review the City’s ratings as part of their ongoing surveillance process.

The City’s Five-Year General Fund Forecast demonstrates that while current operating conditions remain stable, the City faces a significant and foreseeable structural fiscal deficit beginning in FY 2028-29 due to the scheduled expiration of two major recurring revenue sources.

In FY 2025-26, operating revenues and operating expenditures are each projected at approximately $80.9 million, reflecting a balanced operating budget at baseline service levels.

The FY 2025-26 budget also includes additional planned capital expenditures of approximately $15.6 million, partially funded by approximately $11.1 million in grant revenues. In order to support the capital expenditures while maintaining overall fiscal balance, the budget incorporates assumed vacancy savings of 5% and maintenance and operations (M&O) savings of 10%, consistent with the City’s historical operational trends.

While projected deficits in FY2026-27 and FY2027-28 are largely attributable to planned capital expenditures and do not reflect an ongoing structural operating deficit, the City’s fiscal outlook materially deteriorates beginning in FY 2028-29. As noted above, the UUT and the Public Safety Parcel Tax are both scheduled to expire in that fiscal year and collectively generate approximately $16.3 million annually, representing approximately 17% to 18% of General Fund Revenues. Upon expiration of these revenue sources, projected General Fund operating revenues decline to approximately $68.5 million. Operating expenditures in FY 2028-29 are forecasted at approximately $89.4 million, resulting in a recurring structural operating deficit of approximately $20.9 million annually. In addition, the FY 2028-29 budget includes additional planned capital expenditures of approximately $18.8 million, partially funded by approximately $8.1 million in grant revenues. However, the projected structural operating deficit of $20.9 million is independent of capital spending and reflects an ongoing deficit between recurring revenues and recurring expenditures. Historically, the City relied in part on substantial transfers from its utility funds to bridge General Fund’s fiscal gap. However, the City has discontinued this practice in recognition of legal constraints and sound fiscal policy considerations. This level of recurring deficit represents 30% of projected operating revenues and substantially exceeds the City’s historical ability to address fiscal gaps through vacancy management, operational efficiencies, or incremental expenditure reductions without significant service impacts.

Absent corrective action, recurring operating deficits of this magnitude would rapidly deplete General Fund reserves and necessitate substantial reductions in essential services, including public safety support in part by the expiring Public Safety Parcel Tax. Because the expiration of these revenue measures is scheduled and foreseeable, and because the resulting deficit is structural and ongoing in nature, staff finds that the City faces a projected fiscal emergency beginning in FY 2028-29 and recommends that the City Council declare a fiscal emergency at this time in order to initiate timely revenue stabilization and long-term financial planning measures necessary to safeguard fiscal sustainability and protect essential services.

Resolution No. 2026-009 - Requesting County Services
Resolution No. 2026-009 requests that the Los Angeles County Board of Supervisors authorize the Los Angeles County Registrar-Recorder/County Clerk to consolidate the 2026 Special Municipal Election with the Statewide Direct Primary Election. Consolidating with the Primary Election would reduce confusion among voters if two elections were held on the same day and registered voters received separate ballots for the city and county elections. .
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The Registrar-Recorder/County Clerk would be responsible for the election, including distributing election materials, receiving ballots, and completing the canvass. The RegistrarRecorder/County Clerk has thirty days from the date of the election to declare the results.

Resolution No. 2026-010 - Written Arguments and Rebuttals The California Elections Code Sections 9282 and 9285 provides regulations for written arguments and rebuttals, including deadlines for submission. Arguments are due no later than Monday March 16, 2026, and rebuttals must be submitted by Tuesday, March 24, 2026.

Arguments and rebuttals must be submitted during normal posted business hours. Resolution No. 2026-010 provides for the filing of direct and rebuttal arguments and sets the rules for the filing of written arguments regarding a City Measure to be submitted at the June 2, 2026 Special Municipal Election.

The City Council, authorized members of the City Council, citizen associations and private citizens may submit arguments for or against the proposed Measure. Only one ballot argument for and one ballot argument against each measure and rebuttals to each may be printed in the sample ballot. The Elections Code gives preference to the arguments submitted by the City Council, as a body, or by Council Members authorized to submit arguments by the City Council if they have been authorized by the Council. The City Council should decide whether it will submit initial primary arguments and if required, rebuttal arguments. If individual members are to be designated, the City Council should make those designations at this meeting (typically, two members are authorized to write the argument on behalf of the whole Council.

Impartial Analysis
In addition, the City Council also needs to direct the City Clerk to transmit a copy of the measure to the City Attorney for preparation of the impartial analysis. The California Elections Code Section 9280 provides for the City Attorney to prepare an impartial analysis showing the effect of the measure. The impartial analysis is due on Monday, March 16, 2026.

Fiscal Impact
If the measure is approved by the voters, the local sales tax is estimated to generate approximately $1.5 million annually for the General Fund.

The cost estimate for the Special Municipal Election is $10,500. The estimate provided above is an estimate of election costs based on historical costs for comparable elections. The actual cost may be higher or lower than the estimate provided due to changes in any election factors and unanticipated increases in labor and/or operations costs/ The final invoice with actual costs will be provided by the Los Angeles County Registrar-Recorder/County Clerk approximately 90 days after the election. Sufficient funds are available in the General Fund, City Clerk, Department, Election Account No. 011-010-125-529300 for the current fiscal year.

Attachments

1. Resolution No. 2026-008 – Calling for the Placement of a Ballot Measure

2. Resolution No. 2026-009 – Requesting Consolidation of a Special Municipal Election

3. Resolution No. 2026-010 – Setting Argument and Rebuttal Rules and Deadlines .
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RESOLUTION NO. 2026-008

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON,

CALIFORNIA CALLING A SPECIAL MUNICIPAL ELECTION TO BE HELD ON JUNE 2, 2026, FOR THE PLACEMENT OF A GENERAL TAX MEASURE

ON THE BALLOT FOR SUBMISSION TO THE QUALIFIED VOTERS OF AN

ORDINANCE TO ENACT A SUPPLEMENTAL GENERAL TRANSACTIONS

AND USE TAX (SALES TAX) AT THE RATE OF ONE-QUARTER CENT (1/4%) FOR FIVE (5) YEARS
SECTION 1. Recitals.

A. The City of Vernon (“City”) is authorized to levy a Transactions and Use Tax (“TUT”) for general purposes pursuant to California Revenue and Taxation Code section 7285.9, subject to approval by a majority vote of the electorate pursuant to Article XIIIC, section 2 of the California Constitution (“Proposition 218”).

B. Pursuant to California Elections Code section 9222, the City Council has authority to place local measures on the ballot to be considered at “any succeeding regular or special city election” which “shall be held not less than 88 days after the date of the order of election”.

C. The City Council desires to call a Special Election to be held on June 2, 2026, to submit to the voters a measure establishing a supplemental general TUT of one-quarter cent (1/4%) on the sale and/or use of all tangible personal property sold at retail in the City for a period of five (5) years, as more specifically set forth in the attached proposed ordinance adding Chapter 3.10 to Title 3 of the City’s Municipal Code.

D. The one-quarter cent (1/4%) TUT is a general tax, the revenue of which will be placed in the City’s general fund and will be used to pay for general City services.

E. Pursuant to Proposition 218 (California Constitution, Article XIIIC, Section 2(b)) any measure proposing to impose a new general tax, or increase or extend an existing general tax must be consolidated with a “regularly scheduled general election” for members of the City Council, unless the City Council makes certain fiscal emergency findings by unanimous vote to place the measure on a special election at another date.

F. The next “regularly scheduled general election” at which City Council members are to be elected which is at least 88 days later is not until the General Municipal Election to be held on Tuesday, April 13, 2027.

G. For the following reasons, the health, safety and general welfare of the citizens of the City would be endangered if the City were unable to place this Measure before its voters until April 13, 2027.

H. The City’s Five-Year General Fund Forecast demonstrates that the City faces a significant and foreseeable structural fiscal deficit beginning in FY 2028-29 due to the scheduled expiration of two major recurring revenue sources. .
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Item 12 Page 5 of 54
Resolution No. 2026-008