City Council Agenda Report
Meeting Date: October 6, 2026
From: Brian Saeki, City Administrator
Department: City Administration
Submitted by: Sara Sandoval, Management Analyst
Subject
Report on Contract Amendment Approved by the City Administrator Recommendation
Receive and file the report on Amendment No. 1 to the Services Agreement with DEODATE Corporation in the amount of $16,875, as approved by the City Administrator pursuant to Vernon Municipal Code Section 3.32.110(B)(2), to accommodate ongoing work for Phase 1 of the BIG 4 initiative.
Background
On September 16, 2025, the City Council approved a Memorandum of Understanding (MOU) between the Cities of Commerce, Santa Fe Springs, Industry, and Vernon, now known as the “BIG 4” to unite efforts to advocate for shared priorities and the unique needs and benefits that the region's industrial and commercial activities provide to Los Angeles County and the State of California. As part of the MOU, The BIG 4 agreed to utilize the firms of DEODATE Corporation and North Star Alliances (NSA) to assist with formulating and executing a collective economic and real estate development strategy.
Accordingly, on November 1, 2025, the City entered into a Services Agreement with DEODATE to provide Vernon-specific consulting services supporting Phase 1 of the BIG 4 efforts. The City Administrator entered into the agreement pursuant to his authority under Vernon Municipal Code (VMC) Section 3.32.110(B)(2), which allows contracts to be exempt from competitive selection requirements when the best interests of the City are served by a direct award without a competitive selection process. The City Administrator determined that a direct award to DEODATE was in the City's best interest given Vernon's participation in the BIG 4 coalition and the importance of utilizing the same consulting team as the other coalition cities. This approach also provided greater efficiency and cost-effectiveness. The original agreement was for a oneyear term beginning November 1, 2025, structured as a monthly retainer with installments of up to $21,750 per month and a total not-to-exceed amount of $76,125.
Prior to the Amendment, the City paid DEODATE a total of $66,412.71 under the agreement.
Although monthly billings remained below the $21,750 monthly limit, additional funding was necessary to cover remaining services during the contract term. Based on invoices that were pending for May and July 2026, with June 2026 already paid, as well as anticipated billing for August 2026, Amendment No. 1 increased the agreement's total not-to-exceed amount by $16,875, bringing the total contract amount to $93,000. The amendment allowed DEODATE to continue providing the Vernon-specific technical, real estate, and economic development services necessary to support The BIG 4 initiative through the remaining term of the existing agreement for Phase 1. Amendment No. 1 was also approved by the City Administrator pursuant to the bests interests of the City given the work pertaining to the BIG 4 initiative. This report regarding approval of the Amendment is provided to City Council as required by VMC Section
3.32.110(B)(3).
A separate agreement with DEODATE for Phase 2 of the work associated with the BIG 4 initiative is being presented to the City Council for consideration and approval.
Strategic Plan Goals
Goal 2: Promote Economic Growth and Revenue Generation
Fiscal Impact
The fiscal impact of Amendment No. 1 is $16,875, bringing the total not-to-exceed amount of the Services Agreement with DEODATE to $93,000. Sufficient funds were available in Account No. 011-010-150-529215 for Fiscal Years 2025-26 and 2026-27 to cover the amendment.
Attachments
None.