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2015-08-18 City Council Agenda PacketCalifornia Public Records Act ("PRA"): In compliance with the PRA, the documents pertaining to agenda items, including attachments, which are presented to the City Council in open session are available for public inspection. They may be inspected during regular business hours in the Office of the City Clerk at Vernon City Hall, 4305 Santa Fe Avenue; Vernon, California 90058, no appointment necessary, and on the City’s website at www.cityofvernon.org. Americans with Disabilities Act (“ADA”): In compliance with the ADA, if you need special assistance to participate in the meeting, please contact the Office of the City Clerk at (323) 583-8811. Notification of at least 48 hours prior to the meeting or time when services are needed will assist the City staff in assuring that reasonable arrangements can be made to provide accessibility to the meeting or service. Agenda City of Vernon Regular City Council Meeting Tuesday, August 18, 2015, 9:00 a.m. Council Chamber 4305 Santa Fe Avenue Vernon, California W. Michael McCormick, Mayor William J. Davis, Mayor Pro-Tem Luz Martinez, Council Member Melissa Ybarra, Council Member Yvette Woodruff-Perez, Council Member CALL TO ORDER & FLAG SALUTE CHANGES TO THE AGENDA PUBLIC COMMENT - At this time the public is encouraged to address the City Council on any matter that is within the subject matter jurisdiction of the City Council. The public will also be given a chance to comment on matters which are on the posted agenda during City Council deliberation on those specific matters. If you would like to comment concerning a matter that is noticed for a public hearing today, please wait until that hearing is formally opened before making your comment. PRESENTATIONS 1. Personnel Matters - Service Pin Awards. July 2015 Anniversary Employee Name Job Title Years 1. Jose Pereyra Power Plant Operator 25 2. Wenceslao “Pepe” Reynoso Senior building Inspector 30 Regular City Council Meeting Agenda August 18, 2015 Page 2 of 9 3. Ali Nourmohamadian (Nour) Utilities Engineering Manager 25 4. Brandon Gray Police Sergeant 20 2. Certificates of Appreciation for Exiting Members of the Vernon Housing Commission. Recommendation A. Present certificates of appreciation to W. Michael McCormick, Henry Haskell, and Eric Gustafson in recognition of their dedicated service to the Vernon Housing Commission. 3. Swear-in Ceremony. Recommendation A. It is recommended that the City Council instruct the City Clerk to administer the Oath of Office required by Article XX, Section 3 of the Constitution of the State of California for the newly promoted Police Sergeant. 4. California Highway Patrol “10851” Grand Theft Auto Recovery Award. PUBLIC HEARINGS 5. Public Hearing on the City’s conformance with the criteria in the Congestion Management Program (CMP). A Resolution of the City Council of the City of Vernon finding the City of Vernon to be in conformance with the Congestion Management Program (CMP) and adopting the CMP Local Development Report, in accordance with California Government code section 65089. Recommendation: A. Find that approval of the 2015 CMP Local Development Report is (i) statutorily exempt from California Environmental Quality Act (CEQA) review in accordance with CEQA Guidelines Section 15276, which expressly exempts the preparation and adoption of a Congestion Management Program by a county congestion management agency like MTA (as defined below) pursuant to Government Code section 65089 et seq. and (ii) categorically exempt pursuant to CEQA Guidelines section 15061(b)(3) because there is no possibility that approving the report may have a significant effect on the environment; and B. Adopt a resolution of the City Council of the City of Vernon finding the City of Vernon to be in Conformance with the Congestion Management Program (CMP) and Adopting the CMP Local Development Report, in accordance with California Government Code § 65089. 6. Public Hearing on Dedeaux Properties, LLC requesting approval of a conditional use permit to construct and operate a commercial/retail facility. Regular City Council Meeting Agenda August 18, 2015 Page 3 of 9 A Resolution of the City Council of the City of Vernon approving a Conditional Use Permit for Dedeaux Properties, LLC To Construct And Operate A Commercial/Retail Facility Located At 1810 25th Street. Recommendation: A. Find that approval of the proposed Conditional Use Permit is exempt under the California Environmental Quality Act (CEQA) in accordance with Class 32, Section 15332, “In-Fill Development Projects,” because: (i) the Project is consistent with the City’s General Plan and zoning regulations, (ii) the proposed development occurs within City limits on a project site of no more than five acres substantially surrounded by urban uses, (iii) the Project site has no value, as habitat for any endangered, rare or threatened species, (iv) approval of the Project would not result in any significant effects relating to traffic, noise, air quality, or water quality; and (v) the site can be adequately served by all required utilities and public services. Therefore, the Project complies with the findings listed above and may be considered exempt from the California Environmental Quality Act under Section 15332 of the CEQA Implementation Guidelines; and. B. Adopt a resolution of the City Council of the City of Vernon approving a conditional use permit for Dedeaux Properties, LLC to construct and operate a commercial/retail facility located at 1810 25th Street. CONSENT CALENDAR - All matters listed on the Consent Calendar are to be approved with one motion. Items may be removed from the Consent Calendar by any member of the Council. Those items removed will be considered immediately after the Consent Calendar. Claims Against the City – Received and Filed 7. None Minutes – To be Received and Filed 8. Minutes of the Regular City Council Meeting held July 21, 2015. 9. Minutes of the Regular City Council Meeting held August 4, 2015. 10. Minutes of the Joint Special City Council Meeting held August 11, 2015. Warrant Registers 11. Ratification of the following City Warrant Registers to record the following voided checks: A. City Warrant Register No. 1427 to record voided Check No. 347957 in the amount of $500.00; and B. City Warrant Register No. 1427 to record voided Check No. 347969 in the amount of $240.00. Regular City Council Meeting Agenda August 18, 2015 Page 4 of 9 12. Ratification of Light & Power Warrant Register No. 391 to record voided Check No. 511447 in the amount of $105.00. 13. Approval of City Payroll Warrant Register No. 710, totaling $3,062,765.08, which covers the period of July 1 through July 31, 2015, and consists of the following: A. Ratification of direct deposits, checks and taxes totaling $2,229,930.70; and B. Checks and electronic funds transfers paid through General bank account totaling $832,834.38. 14. Approval of City Warrant Register No. 1430, totaling $1,409,144.03, which covers the period of July 28, through August 10, 2015, and consists of the following: A. Ratification of wire transfers totaling $538,384.42; and B. Ratification of the issuance of early checks totaling $535,700.67; and C. Authorization to issue pending checks totaling $335,058.94. 15. Approval of Light & Power Warrant Register No. 395, totaling $1,569,904.34, which covers the period of July 28, through August 10, 2015, and consists of the following: A. Ratification of wire transfers totaling $1,501,026.34; and B. Ratification of the issuance of early checks totaling $29,681.28; and C. Authorization to issue pending checks totaling $39,196.73. 16. Approval of Gas Warrant Register No. 183, totaling $1,481,152.88, which covers the period of July 28, through August 10, 2015, and consists of the following: A. Ratification of wire transfers totaling $1,480,618.38; and B. Ratification of the issuance of early checks totaling $222.00; and C. Authorization to issue pending checks totaling $312.50. Fire Department 17. Activity Report for the period of July 16 through July 31, 2015, to be received and filed. Health and Environmental Control Department 18. July 2015 Monthly Report, to be received and filed. Regular City Council Meeting Agenda August 18, 2015 Page 5 of 9 Police Department 19. Activity Log and Statistical Summary of Arrests and Activities for the period of July 16, through July 31, 2015, to be received and filed. NEW BUSINESS City Administration Department 20. A Resolution of the City Council of the City of Vernon amending Resolution No. 2012-173 and 2014-53 regarding the reimbursement of certain costs incurred by current Vernon City personnel in connection with a review by the California Public Employees’ Retirement System (“CalPERS”). Recommendation: A. Find that the approval of the proposed resolution 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 an effect on the environment; and B. Adopt the resolution to authorize up to an additional $75,000 in reimbursable legal expenses for Michael McCormick relating to his ongoing appeal of CalPERS’ determination arising out of the CalPERS Audit Report findings (CalPERS Case No. 2013-0899). 21. A Resolution of the City Council of the City of Vernon approving and authorizing the execution of an agreement regarding assignment and assumption of purchase and sale agreement by and between the City of Vernon and Fruitland Owner, LLC for property located at 3200 Fruitland Avenue. Recommendation: A. Find that approval of the proposed agreement regarding assignment and assumption is exempt from 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 an effect on the environment; and B. Approve the Resolution to authorize the Agreement Regarding Assignment and Assumption of Purchase and Sale Agreement with Fruitland Owner, LLC for the property located at 3200 Fruitland Avenue. City Clerk Department 22. Approval of a Request for Expression of Interest and Information (RFI) for a Potential Records Management Program Request for Proposal (RFP). Recommendation: (Items A-B) A. Find that approval of the proposed Request for Expression of Interest and Information (RFI) does not constitute a “project” pursuant to section 15378(b)(2) of the Guidelines to the California Regular City Council Meeting Agenda August 18, 2015 Page 6 of 9 Environmental Quality Act (“CEQA”), because it constitutes an administrative activity; and even if the adoption of the proposed RFI did constitute a project, it would be exempt from CEQA in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and B. Approve the issuance of the Request for Expression of Interest and Information (RFI) to be used for the potential development of a Records Management Program Request for Proposal (RFP). Gas and Electric Department 23. Request for Approval of Millennium, Inc. Products Optical Fiber Use Agreement No. 14. Recommendation: A. Find that the Optical Fiber Use Agreement No. 14 with Millennium, Inc. is exempt under the California Environmental Quality Act (CEQA) in accordance with CEQA Guidelines Section 15301(b) which exempts minor extensions of utility services involving negligible or no expansion of use beyond that existing at the time of the lead agency’s determination, and under Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment, because the proposal will not require any construction, and the only physical change to the environment is stringing a few hundred feet of fiber optic cabling (of roughly ½ inch in diameter) from existing utility poles onto private property; and B. Approve and authorize the execution of Optical Fiber Use Agreement No. 14 by and between the City of Vernon and Millennium Products, Inc. and the related Short Form IRU-14.1 Indefeasible Right of Use Agreement, in substantially the same form as submitted with the staff report, for the purpose of leasing unused fiber optic cable. Upon approval, construction for the implementation of an Optical Fiber Connection will commence. Human Resources Department 24. Adoption of City of Vernon Exceptional Employee Program (VEEP) Award. Recommendation: A. Find that approval of the proposed VEEP Award is exempt from California Environmental Quality Act (“CEQA”) review, because it is a general policy and procedure making activity that will not result in direct or indirect physical changes in the environment, and therefore does not constitute a “project” as defined by CEQA Guidelines section 15378. Furthermore, even if it were a project, because such activity will not have any effect on the environment, this action would be exempt from CEQA review pursuant to CEQA Guidelines Section 15061(b)(3), the general rule that CEQA only applies to projects that may have a significant effect on the environment; and B. Adopt the Vernon Exceptional Employee Program (VEEP) and; C. Authorize the City Administrator and the Director of Human Resources to administer the program annually. Regular City Council Meeting Agenda August 18, 2015 Page 7 of 9 Police Department 25. Federal Equitable Share Agreement and Annual Certification Report. Recommendation: A. Find that granting authority to execute and submit the above-referenced agreement and related documents is exempt from California Environmental Quality Act (“CEQA”) review, because such is a government fiscal activity, which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment and is therefore not a “project” as defined by CEQA Guidelines section 15378. Furthermore, even if it were a project, the activity would be exempt in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and B. Authorize the Police Chief and City Administrator to execute the Federal Equitable Share Agreement and Annual Certification Report on behalf of the City of Vernon, in substantially the same form as submitted with the staff report. Public Works, Water and Development Services Department 26. A Resolution of the City Council of the City of Vernon approving the Greater Los Angeles Integrated Regional Water Management Plan Update 2014 for the 2015 final round of Prop 84 IRWM Grant Program. Recommendation: A. Find that the proposed Resolution Adopting the Greater Los Angeles Integrated Regional Water Management Plan Update 2014 is exempt under the California Environmental Quality Act (“CEQA”) in accordance with CEQA Guidelines Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment and pursuant to Section 15308, because the action is to assure the maintenance, restoration, enhancement or protection of the environment where the regulatory process involves procedures for the protection of the environment; and B. Approve a Resolution adopting the Greater Los Angeles Integrated Regional Water Management Plan Update 2014. 27. A Resolution of the City Council of the City of Vernon approving and accepting the Grant Deed dedicating in fee a portion of the property located at 3636 26th Street. Recommendation: A. Find that accepting the Grant Deed is exempt from the California Environmental Quality Act (CEQA) in accordance with CEQA Guidelines section 15301(c) because if any construction occurs as a result of accepting and executing the Grant Deed, the work would merely involve negligible expansion of an existing street; and B. Adopt the proposed resolution to authorize the Mayor and City Clerk to execute the Certificate of Acceptance and the Grant Deed for approximately 2,537 square feet of land located at 3636 26th Street. Regular City Council Meeting Agenda August 18, 2015 Page 8 of 9 ORDINANCES 28. Approval of the following ordinances Granting U.S. Tow, Inc. and Mr. C’s Towing of South Gate Inc., A Franchise Towing Services Agreement: Ordinance No. 1231 - An Ordinance of the City Council of the City of Vernon granting to U.S. Tow, Inc., a franchise towing services agreement. Ordinance No. 1232 - An Ordinance of the City Council of the City of Vernon granting to Mr. C’s Towing of South Gate, Inc., a franchise towing services agreement Recommendation: A. Find that approval of a services agreement with US Tow Inc. and Mr. C’s Towing 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. Hold the first reading of the proposed Ordinance granting to U.S. Tow, Inc., a franchise towing services agreement; and C. Hold the first reading of the proposed Ordinance granting to Mr. C’s Towing of South Gate, Inc., a franchise towing services agreement; and D. Authorize the Mayor to execute the franchise agreements on behalf of the City. DISCUSSION ITEM AND POSSIBLE DIRECTIVES TO STAFF 29. Discussion of Proposed Elimination of Priority for First Responders in Leasing City-Owned Housing. Recommendation: A. Hold a discussion regarding the joint recommendation made by the Housing Commission and City staff to eliminate the priority for first responders in leasing City-owned housing. B. If the City Council concurs with the aforementioned recommendation, direct staff to prepare an ordinance to amend Section 2.125(b) of the Vernon Municipal Code to remove the first responder leasing priority, effective at 5:01 p.m. on December 8, 2015. ORAL REPORTS 30. City Administrator Reports – brief reports on activities and other brief announcements by the City Administrator and Department Heads. Regular City Council Meeting Agenda August 18, 2015 Page 9 of 9 31. City Council Reports – brief report on activities, announcements, or directives to staff. CLOSED SESSION 32. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (6) Government Code Section 54956.9(d)(1) (a) In the Matter of the Calculation of Final Compensation of Bruce Malkenhorst, Sr. CalPERS Case No. 2012-0671 (b) Bruce Malkenhorst, Sr. v. City of Vernon, et al. Los Angeles Superior Court Case No. BC516321 Court of Appeal of California Case No. B258793 (c) Bruce Malkenhorst, Sr. v. State of California, et al. (United States District Court Case No. SACV14-00296) (d) Jurupa Avenue Limited Partnership v. City of Vernon, et al. Los Angeles Superior Court Case No. BC516913 (e) Los Angeles Unified School District v. County of Los Angeles, et al. Los Angeles Superior Court Case No. BS 108180 (f) City of Gardena v. Regional Water Quality Control Board – Los Angeles Region, et al. (Los Angeles Superior Court Case No. BS 156342) ADJOURNMENT I hereby certify under penalty of perjury under the laws of the State of California, that the foregoing agenda was posted on the bulletin board at the main entrance of the City of Vernon City Hall, located at 4305 Santa Fe Avenue, Vernon, California, and on the City’s website, not less than 72 hours prior to the meeting set forth on this agenda. Dated this 13th day of August 2015. By: ________________________________ Maria E. Ayala City Clerk RECEI /ED AUG 0 5 2015 RECEIVEE} AUG 0 3 20t5 CITY ADMINISTRATIONSTAFF REPORT CITY CLERl('s CIFFIC UMAN RESOURCES DEPARTMENT DATE: TO: FROM: RE: August 18,2015 Honorable Mayor and City Council Teresa McAllister, Director of Human Resources n"p".t-"rtJN Originator: Veronica Avendano, Administrative Secretary Service Pin Awards for July 2015 Recommendation A. City Council to present service pins to those employees hired in July. Background Submitted herevrith lists the employees who are eligible to receive their service pin based on the number of service years with the City of Vemon. Fiscal Impact None. Attachment(s) 1. July 2015 Service Pin employee list. Page I of 1 r zz a !) a-o o !) zo o !) op zo €o5 o po o'o ID ao o o .D 3 F ti z ? ln ,! o (! L) F rn .D C' €o o a R" a! o -i? dzFl o IDoo gqo C o F1 crc o a oaz 0qo lca :.o t! o-E' oq 'o o o! Fn !) .q o !) o -i il Ftn \ o \o\o \ \oo \ @(rr \ \o\oO NJo NJ t9 a RECEE\/ED AUG t 3 2ot5 CIIY CLERl{'S OFFICE STAFF REPORT CITY ADMINISTRATION DATE: TO: FROM: R.E:Certificates of Appreciation for Exiting Members of the Vernon Housing Commission Recommendation A. Present certificates of appreciation to W.Michael McCormick, Henry Haskell, and Eric Gustafson in recognition of their dedicated service to the Vemon Housing Commission. Backqround The Vemon Housing Commission was established in July 201I to provide open and transparent management of Vemon's housing units. The Commission makes recommendations to the City Council regarding leasing, market rental rates, repair and maintenance, and potential divestment and development opportunities. The Commission also develops and implements procedures to effectuate policy objectives established by the City Council. The Commission provides a public forum for residents and other members of the community to address housing related issues and is the fulfillment of a critical element of the City's good govemance reforms. The Commission meets on a quarterly basis the second Wednesday of each March, June, September, and December. The Vemon Housing Commission is comprised of seven members - tkee Vemon residents, one of which is a City Council member, tfuee Vemon business representatives, and one employee of a Vernon business. W. Michael McCormick served on the Vernon Housing Commission in the resident City Council member seat from August 2013 until his resignation in March 2015. Mr. Mccormick served as the Vice Chairperson of the Commission from December 2013 to December 2014. Henry Haskell was appointed to serve on the inaugural vemon Housing Commission in August 201l. His term serving on the Commission in a Vemon business representative seat ended on August 10, 201 5. August 18,2015 Honorable Mayor and City Council Mark C. Whitworth, City Administrator Originator: Lilia Hernandez, Executive Assii t to the City Administrator Page I of2 Eric Gustafson was also appointed to serve on the inaugural Vernon Housing Commission in August 201 l. Mr. Gustafson served as the Chairperson of the Commission Iiom August 201 I until December of 2013. His term serving on the Commission in a Vemon business representative seat ended on August 10, 2015. The participation, commitment, and dedication of W. Michael McCormick, Henry Haskell, and Eric Gustafson to the Vemon Housing Commission is greatly admired and appreciated and deserved of formal recognition. All three former Commissioners will attend the upcoming City Council Meeting to accept a certificate of appreciation in recognition oftheir service. Fiscal Impact There is no significant fiscal impact associated with the presentation of certiticates of recogrition. The nominal cost of the certificates is included in the 2015/2016 City Administration supply budget. Attachment(s) None. Page 2 of2 RECEIVED AUG I 2 20ts CITY ADMINISTRATION TO: FROM: RE: STAFF REPORT Ilonorable Mayor and City Council Daniel Calleros, Police Chief 0? Presentation - Swear-In Ceremony Recommendation It is recommended that the City Council instruct the City Clerk to administer the Oath of Office required by Article XX, Section 3 of the Constitution of the State of Califomia for the newly promoted Police Sergeant. Background The Police Departrnent (PD) conducted an examination process to fiIl a critical swom position that was vacated as a result of a recent employee retirement. There were 13 intemal candidates that participated in the examination process. Based on the results of the examination process, it was determined that Detective Jererny Cross is the most qualified candidate for the position of Police Sergeant. Fiscal Impact There is no fiscal impact to the City general budget as this position is included in the 2015-2016 fiscal year budget. Attachment(s) None VERNON POLICE DEPARTMENT Page I of 1 RECtrIT/ED JUL Z g Zo15 CIIY Cl.ER('S OFFICE STAFF REPORT VERNON POLICE DEPARTMENT CITY AD FROM: RE: August 4,20'15 Honorable Mayor and Council Members Daniel Calleros, Chief of Police tlr Awards Presentation Recommendation The Vernon Police Department (VPD) in conjunction with a representative from the California Highway Patrol (CHP) will conduct an award presentation for the recipients of the CHP "10851" Grand Theft Auto Recovery Award. Backqround The "10851" Grand Theft Auto Award is named after the California Vehicle Code section relating to the theft of motor vehicles. The award is sponsored in collaboration between by the CHP and AAA lnsurance, and recognizes police officers throughout California who have been proactive in recovering stolen vehicles and apprehending criminals specifically involved in auto theft. The 10851 pin is awarded to uniform officers who, during a 12-month period, have achieved any of the following criteria: 1. Made six separate theft recoveries cleared by anests.2. Recover twelve (12) stolen vehicles, of which a minimum of three (3) must be cleared by arrests. Vernon Police Officers Fernando Valenzuela and Luis Vasquez have achieved this benchmark once again. This will be the ninth award for Officer Valenzuela and the third award for Officer Vasquez. Both officers are very proactive in auto theft investigations and are leaders in annual auto theft arrests. very few officers ever receive this award given the specific requirements. Fiscal lmpact There is no fiscal impact to the City general budget. Attachment(s) None City of Vernon Date & Time: 4305 Santa Fe Avenue Vernon, CA 90058 (323) 583-881l NOTICE OF PUBLIC HEARING The City Council of the City of Vemon will conduct a Public Hearing, which you may aftend. Place:Vemon City Hall City Council Chambers 4305 Santa Fe Avenue Vemon, CA 90058 Tuesday, August, 18, 2015 at 9:00 a.m. (or as soon thereafter as the matter can be heard) The City Council ofthe City of Vemon will be conducting a Public Hearing regarding Vemon's conformance witlr the criteria in the Congestion Management Program as established by the Los Angeles County Metropolitan Transportation Authority. The purpose ofthe hearing is to obtain testimony from affected and/or interested persons regarding this subject. The public is also invited to submit written comments regarding the request prior to the Hearing. Review of the file:The documentation supporting the conclusion that Vemon is in conformance with the Congestion Management Program is available in the office of Community Services, Vemon City Hall,4305 Santa Fe Avenue, Vemon, CA 90058, between the hours of 7:15 a.m. and 5:15 p.m. Monday through Thursday. If you challenge the approval of Vemon's self certification or any provision thereof in court, you may be limited to raising only those issues you or someone else raised at the hearing described in this notice or in written correspondence delivered to the City of Vemon a! or prior to, the meeting. The hearing may be continued or adjoumed or cancelled and rescheduled to a stated time and place without further notice of a public hearing. Dated:o l<l ts :EREcFrlf F-D AUG 1 3 2t]i5 CITY CLER(S I]FTICE STAFF REPORT PUBLIC WORKS, WATER & DEVELOPMENT SERVICES DEPAR DATE: TO: APPROVEDBY: RE: August 18,2015 Honorable Mayor and City Council -t/)Samuel Kevin Wilson, Director of Public Works, Water & Development Originator: Sergio Canales, Assistant Planner Resolution to Self-Certifu 2015 Congestion Management Program (CMP) Local Development Report in Accordance With Government Code $ 650E9 RECOMMENDATION It is recommended that the City Council conduct a public hearing and thereafter: A. Find that approval of the 2015 CMP Local Development Report is (i) statutorily exempt from Califomia Environmental Quality Act (CEQA) review in accordance with CEQA Guidelines Section 15276, which expressly exempts the preparation and adoption ofa Congestion Management Program by a colmty congestion management agency like MTA (as defined below) pusuant to Govemment Code section 65089 erseq. and (ii) categorically exempt pursuant to CEQA Guidelines section 15061(bX3) because there is no possibility that approving the report may have a significant effect on the environment; and B. Adopt a resolution self-certiffing the City's compliance with the Congestion Management Program requirements and adopt the 2015 CMP Local Development Report in accordance with Califomia Govemment Code Section 65089. BACKGROT]ND ln 1989, the Legislature noted increasing concem that ruban congestion was impacting the economic vitality of the state and diminishing the quality of life in many communities. The Legislature also noted that the planning process was not well suited to address the congestion relief. I CITY ADMINISIRATI As a new approach to address congestion concems, the Legislature implemented a series of rules, centered on a congestion Management Program (cMP). The requirements of the cMp became effective with the passage of Proposition 111 by the voters in June 1990. The Los Angeles County Metropolitan Transportation Authority (MTA) is the state-mandated Congestion Management Agency for Los Angeles County. In 1992,MTA adopted the first CMp for Los Angeles county. Since then, MTA has updated and adopted several cMPs with its most recent adoption in 2010. The CMP was created to address regional congestion problems in Los Angeles County through linkage and coordination of land use, transportation, and air quality decisions. To continue receiving Section 2105 state gas tax funds, and to remain eligible for other state and federal ransportation funds, Vemon must comply with the CMP requirements. The City must hold a public hearing and thereafter adopt a resolution approving the CMP Local Development Report. The CMP Local Development Report outlines all new development and demolition activity in the City from Jme 1,2014to May 31,2015. From these reports the MTA will be able to determine the growth ofbuilding area ofresidential, commercial and industrial space in the Los Angeles Basin. Attached for the City Council's consideration is a resolution authorizing the submittal of the CMP Local Development Report and self-certi&ing compliance with the CMP, in accordance with Califomia Govemment Code Section 65089. CEOA AI\ALYSIS Reporting on, and establishing compliance with, a Local CMP is not subject to the Califomia Environmental Quality Act (CEQA). According to the CEQA Guidelines, Section 15276, CEQA does not apply to the development or adoption of regional transportation improvement programs. Therefore, the project is statutorily exempt from CEQA review. It is also exempt from CEQA pursuant to CEQA Guidelines section 15061(b)(3) because there is no possibility that approving the report may have a sisnificant effect on the environment. FISCAL IMPACT Approving this action does not directly impact the city's finances. If, however the City fails to provide a report in compliance with the CMP, state gas taxes and/or other transportation firnds could be withheld. Attachments: 2015 CMP Local Development Report Notice of Public Hearing Proof of Pub I ication 2 lTY OF VERNON Date prepared: Ausust 6, 2015 5 CMP Local Development Report Reporting Period: JUNE '1, 2014 -MAY 31,2015 Contact: Sergio Canales Phone Number: (323) 583{8l l CONGESTION MANAGEMENT PROGRAM FOR LOS ANGELES COUNTY . IMPORTANT: All 'Svalue!" cells on this page are automatically calculated. Please do not enter data in these cells. DEVELOPMENT TOTALS RESIDENTIAL DEVELOPMENT ACTIVITY Single Family Residential Multi-Family Residential Group Ouarters COMTERCIAL DEVELOPMENT ACTIVITY Commercial (less than 300,000 sq.ft.) Commercial (300,000 sq.ft. or more) Freestanding Eating & Drinking NON.RETAIL DEVELOPMENT ACTIVITY Lodging lndustrial Office (less than 50,000 sq.ft.) Offi ce (50,000-299,999 sq.ft.) Office (300,000 sq.ft. or more) Medical Government I nstitutlonal/Educational University (# of students) OTHER DEVELOPMENT ACTIVITY ENTER IF APPLICABLE ENTER IF APPLICABLE EXEMPTED DEVELOPMENT TOTALS Exempted Dwelling Units Non-residential sq. ft. (in 1.000s 1 Net 0.00 (337.31) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2 Net squae feet is the difference between new development and adjustments entered on pages 2 and 3_ Page 1 2015 DEFICIENCY PLAN SUMMARY CITY OF VERNON Date prepared: Aususr6,2o15 2015 CMP Local Development Report Reporting Period: JUNE 1, 2014 -MAY 31,2015 Enter data for all cells labeled "Enter." lf there are no data for that cateqory, enter "0." RESIDENTIAL DEVELOPMENT ACTIVITY Category Dwelling Units Single Family Residential 0.00 Multi-Family Residential 0.00 Group Ouarters 0.00 COMMERCIAL DEVELOPMENT ACTIVITY Category 1,000 Gross Square Feet Commercial (less than 300,000 sq.ft.)0.00 Commercial (300,000 sq.ft. or more)0.00 Freestanding Eating & Drinking 0.00 NON.RETAIL DEVELOPMENT ACTIVITY Category 1,000 Gross Square Feet Lodging 0.00 lndustrial 163.06 Office (less than 50,000 sq.ft.)0.00 Offi ce (50,000-299,999 sq.ft .)0.00 Office (300,000 sq.ft. or more)0.00 Medical 0.00 Govemment 0.00 lnstitutional/Educational 0.00 University (# of students)0.00 OTHER DEVELOPMENT ACTIVITY Description (Attach additional sheets if necessary) Daily Trips Enter "0" if none ENTER IF APPLICABLE 0.00 ENTER IF APPLICABLE 0.00 Page 2 PART 1: NEW DEVELoPMENT ACTIVITY CITY OF VERNON Date prepared: Ausust6,2o15 2015 CMP Local Development Report Reporting Period: JUNE 1, 2014 - MAY 31,2015 Enter data for all cells labeled "Enter." lf there are no data for that cateqory, enter "0. IMPORTANT: Adjustments may be claimed only for 1)development permits that were both issued and revoked, expired or withdrawn during the reporting period, and 2) demolition of any structure with the reportinq period. RESIDENTIAL DEVELOPMENT ADJUSTMENTS Category Dwelling Units Sinqle Family Residential 0.00 Multi-Family Residential 0.00 Group Quarters 0.00 COMMERCIAL DEVELOPMENT ACTIVIry Category 1,000 Gross Square Feet Commercial (less than 300,000 sq.ft )0.00 Commercial (300,000 sq.ft. or more)0.00 Freestandinq Eatinq & Drinkinq 0.00 NON.RETAIL DEVELOPMENT ACTIVITY Category 1,000 Gross Square Feet Lodging 0.00 lndustrial 500.37 Office (less than 50,000 sq.ft.)0.00 Office (50.000-299.999 sq.ft )0.00 Office (300,000 sq.ft. or more)0.00 Medical 0.00 Government 0.00 I nstitutional/Educational 0.00 University (# of students)0.00 OTHER DEVELOPMENT ACTIVITY Description (Attach additional sheets if necessary) Daily Tripe (Enter "0" if none ENTER IF APPLICABLE 0.00 ENTER IF APPLICABLE 0.00 Page 3 PART2: NEWDEVELOPMENTADJUSTMENTS CITY OF VERNON Date prepared: Ausust 6,20i5 2015 CMP Local Development Report Reporting Period: JUNE 1, 2014 - MAY 31,2015 Enter data for all cells labeled "Enter." lf there are no data for that cateqory, enter "0." LowNery Low lncome Housing High Density Residential Near Rail Stations Mixed Use Developments Near Rail Stations Development Agreements Entered into Prior to July 10, 1989 Reconstruction of Buildings Damaged due to "calamity" Reconstruction of Buildings Damaged in Jan. 1994 Earthquake Total Dwelling Units Total Non-residential so. ft. (in 1,000s) Dwelling Units Dwelling Units 1,000 Gross Square Feet Dwelling Units 1,000 Gross Square Feet Dwelling Units 1 ,000 Gross Square Feet Dwelling Units 1,000 Gross Square Feet Dwelling Units Page 4 Exempted Development Defi nitions: 1. Low^/ery Low lncome Housing: As delined by the Califomia Department of Housing and Community Development as follows: - Low-lncome: equalto or less than 80% ofthe County median income, with adjustments forfamily size. - Very Low-lncome; equal to or less than 50% of the County median income, wilh adjustments for family size. 2- High Density Residential Near Rail Stations; Development located within 1/4 mile of a Iixed rail passenger station and that is equal to or greater than 120 percent of the maximum residential density allowed under the local general plan and zoning ordinance. A project providing a minimum of 75 dwelling units per acre is automatically considered high density. 3. Mixed Uses Near Rail Stations: Mixed-use development located within 1/4 mile of a fixed rail passenger station, if more than half of the land area, or floor area, of the mixed use development is used for high density residential housing. 4. Development Agreements: Projects that entered into a development agreement (as specified under Section 65804 of the Califomia Govemment Code) with a local .iurisdiction prior to July 10, 1989. 5. Reconstruction or replacement of any residential or non-residential structure which is damaged or destroyed, to the extent of > or = to 50% of its reasonable value, by fire, flood, earthquake or other similar calamity. 6. Any projec{ of a federal, state or county agency that is exempt from local jurisdic{ion zoning regulations and where the loc€l jurisdiction is precluded ftom exercising any approval/disapproval authority. These locally precluded pOecis do not have to be reported in the LDR PART 3: EXEMPTED DEVELoPMENT ACTIVITY CITY OF VERNON Proof of Publication of City of Vernon Notice of Public Hearing... Tuesdav. August I 8. 201 5...regarding Vemon's conformance with the criteria in the Congestion Management Program as established by the Los Angeles Countv Metropolitan Transportation Authorit-v clTY oF VERLOl'. NOTICE OF PUBLIC HEARIiIG Th€ Clly Councll oi ths City of vemon will conduct a Public Hoadng which PLACE V€mon City Hall, City Council ChamboB 4305 Santa F6 Avonu€, Vamon, CA90058 DATE & Tu..d.y, augutt, 1E, 20'15 .19:00 r.m.. .. (or 6s s6;n thloreaner as th6 matler can b€ hsed) m6aiing- Oaled: ArglgLL2q1i il of the CilY ol vsmon wlll bs H V6mon's conlormanc€ with C 6msnt Prooram as 6slablished aountv M€trooolltan T Tho puaoss or rns "{rnryis to oblsin t;slimony l6r6sled persons ragarding this subi6d. Ths iublic iE also rnvtud to submll wYiltsn comrEnt! rsgsrding th€ raquosl pdor to lhe Headng. REVIEW OF Th€ dooim6ntation supportrng lhe cond6ion that lbmon IHE FILE:FILE: Monday through ThuGdaY. ll x ol Vsmon s p-riio" ire limlted to or 30. .-- .- -.-- .- --- - hearing d6s en corresponaenc€ Oetiversd to lhe Citv of v€mon at. or prior to. tha ;nd plac6 without_tunher notic€ or a public hosring RESOI-.UTION NO. A RESOLUTION OF THE CITY COUNCfL OE THE CTTY OF VERNON FTNDING THE CITY OF VERNON TO BE TN CONFORMANCE WITH THE CONGEST]ON MANAGEMENT PROGRAM (CMP) AND ADOPTTNG THE CIVIP LOCAI DEVELOPMEIIT REPORT, IN ACCORDANCE WITH CAIIEORNTA GOVERNMEIfrT CODE SECTION 55089 ITIHEREAS, California Government Code Section 55089 requires the Los Angeles County Metsropolitan Transportation AuLhority (*LACIVITA" ) , actsing as the Congestsion Management Agency for Los Argeles County, tso annuaf 1y determine tshats the County and cities within the Councy are conforming Eo all Congestion Manag'ement Program ()C]{P") reguiremenEs; and WHEREAS, LACIVITA requires submittal of tshe cMP Local Devefopment ReporE by September lst of each year,' and WHEREAS, Ehe City Council of the City of Vernon held a noticed pu-blic hearing on Augl.rst 18, 20L5, at. which tsime all int.erested persons were giwen a opportunitsy to be heard; and WHEREAS. tshe City Counci]- has heard and considered all evidence, both written and oral, presented respecting Vernon's conformance with the criEeria in the C'I{P as estalrlished by the LACMTA. NOW, THEREFORE, BE IT RESOLVED BY THE CTTY COUNCfL OF THE CITY OF VERNON AS FOT .OWS: SECTIoN 1: The Citrlr Council of t.he City of Vernon hereby finds and determines chats the above recicals are true and correcE. SECTfON 2: The City Councif of the City of Vernon hereby finds thaE approval of t.he 2015 CMP Local Developments Report is st,atutorily exempt under Ehe California Environmentsal Ouality Act (CEQA) in accordance wiEh CEOA Guidelines section 1-5276, w}:lj-ch expressly exempts the preparation ald adoption of the CMP and catsegoricall-y exempts pursuant to CEQA Guidelines section l-5061 (b) (3) because there is no possibility that approvi.ng the report may have a significants effecE on the enwironment SECTION 3:The City Council of the City of vernon finds and determines tshaE the City of Vernon has tsaken all of the following actsions, and that the CiEy is in conformance with aII applicable requirements of the 2010 CIIP adopted by the LAO4TA Board on October 28. 20L0 . A. The Citsy of Vernon has 1oca1ly adopted and conEinues to implements a transportation demand management ordinance, consistent with Ehe minimum requirements identified in the CMP Transportation Demand Managiement chapter. B. The City of Vernon has 1oca11y adopted and conE.inues Eo implements a land use analysis program. consistsents with the minimum requirementss identified in tshe CMP Land Use Analysis Program chapt.er. SECTION 4: The City Cor:ncil of the City of Vernon hereby adopts the Local Development Report ("LDR"), attached heretso as Exhibi t- A and incorporatsed by reference, and finds tshat it is consistent with the reguirements identified in tshe 2010 G"IP. This report balances traffic congesLion impact.s due to growth within the Ci-tsy wiEh transportation improvements, and demonsErates that the City is meeting its respons ibilitsies under t.he Countsy,,iide Deficiency Plan consistent. with the LACMTA Board adopted 2003 Short Range Transportation P1an. 2 SECTIoN 5: The City Council- of the citsy of Vernon hereby direct.s t.he City C]erk, or t.he City Clerk's designee, to forward a certified copy of this Resofution wiEh E.he attached LDR to: Attsn: SEacy Alameida, Transportsation Planning Manager Los Angeles County Metropol-itan Transportation Authority Congestion Management Program, Mail Stop 99-23-2 1 Gat.eway Plaza Los Angeles , CA 900]-2-2952 SECTION 5: The City Clerk, or Deputsy City Clerk of t.he City of Vernon shalI certify tso tshe passage, approval and adoption of this resolutsion, and the City Clerk, or Deputy Citsy C1erk, of Ehe City of Vernon shall cause this resolution and the City Clerk's, or DepuEy CiEy Clerk's, cerEificalion tso be entered in the Fil-e of Resolutions of the Council of chis City. APPROVED AND ADOPTED this 18Eh day of August, 2015 Name: TitLe: Nlayor / Mayor Pro-Tem ATTEST: City Clerk / DepuEy City Clerk APPROVED AS TO FORM City At.torney 3 STATE OF CAIIFORNIA ) ) ss COUIiITY OF LOS ANGELES ) , City Clerk / Deputy Citsy Clerk of the CiEy of vernon, do hereby certify that the foregoing Resolution, being Resolution No. , was duly passed, approved and adopLed by the City Council of the CiEy of vernon ats a regular meeting of che Cj-tsy Council duly held on Tuesday, August 18, 2015, and thereafter was duly sig'ned by the Mayor or Mayor Pro-Tem of the Citsy of Vernon. Executed this day of August, 201-5, aL Vernon, California. City Clerk / Deputy City Clerk (SEAL) I, 4 EXHIBIT A OF VERNON Date Prepared: Ausust6,2o1s 5 CMP Local Development Report Period: JUNE t, 2014 -$AY 31, 2015 Contact S.rgio G.n.hs Phone Number: (323) 38il-811 CONGESTION MANAGEMENT PROGRAM FOR LOS ANGELES COUNTY . IIIPORTANT: All 'Sv.lue!" celb on this page ale automatically calculated. Please do not enter data in th6e cells. DEVELOPMENT TOTALS RESIDENTIAL DEVELOPTIENT ACTIVIIY Single Family Residential Multi-Family Residential Group Quarters COT,IMERCIAL DEVELOPMENT ACTMTY Commercial (less than 300,000 sq.ft.) Commercial (300,000 sq.ft. or more) Freestanding Eating & Drinking NONRETAIL DEVELOPT'ENT ACTMTY Lodging lndustrial Office (less than 50,000 sq.ft-) Offce (50,000-299,999 sq.ft.) Otrce (300,000 sq.ft. or more) Medical Govemment I nstitutional/Educational University (# of students) OTHER DEVELOPMENT ACTMTY ENTER IF APPLICABLE ENTER IF APPLiCABLE EXEMPTED DEVELOPMENT TOTALS Exempted Dwelling Units Non-residential sq. ft. (in 1,000s 1 Net 0.00 (337.31) 0.00 0.00 0.00 0.00 0.00 0.0G 0.00 2. Net squate feet is the difference between new development and adjustnents entered on pages 2 and 3. Page 1 2015 DEFICIENCY PLAN SUMMARY 0.00 0.00 0.00 H CITY OF VERNON Date Prepared: Ausust6.2015 2015 CMP Local Development Repoft Reporting Period: JUNE 1, 2014 -MAY 3'1,2015 Enter data for all cells labeled "Entet." lf there are no data for that category, enter ''0." RESIDENTIAL DEVELOPMENT ACTTVITY Category Dwelling Units Sinqle Familv Residential 0.00 Multi-Family Residential 0.00 Group Quarters 0.00 COMMERCI,AL DEVELOPMENT ACTIVITY Category '1,000 Gross Square Feet Commerclal (less than 300,000 sq.ft.)0.00 Commercial (300,000 sq.ft. or more)0.00 Freestandinq Eating & Ddnking 0.00 NON.RETAIL DEVELOPMENT ACTIVITY 1,000 Gross Square Feet Lodqinq 0.00 ndustial 163.06 Office (less than 50.000 sq.ft.)0.00 Office (50.000-299.999 sq.ft .)0.00 Office (300,000 sq.ft. or more)0.00 Medical 0.00 Government 0.00 I nstitutional/Educational 0.00 Universitv (# of students)0.00 OTHER DEVELOPMENT ACTIVITY Description (Attach additional sheets if necessary) Daily Trips (Enter "0" if none ENTER IF APPLICABLE 0.00 ENTER IF APPLICABLE 0.00 Page 2 1: NEW ACTIVITY Category CITY OF VERNON Date Prcpar€d: Ausust6,2o'15 2015 CMP Local Development Report Reporting Period: JUNE l, 201,1 - MAY 31,2015 Enter data for all cells labeled "Enter." lf there are no data for that category, enter "0. IMPORTANT: Adjustnents may be claimed only for 1) development permits that were both issued and revoked, expired or withdrawn during the reporting period, and 2) demolition ofany structure with the reportinq period. RESIDENTIAL DEVELOPMENT ADJUSTMENTS Category Dwelling Units Sinqle Family Residential 0.00 Multi-Family Residential 0.00 Group Quarters 0.00 COMMERCIAL DEVELOPMENT ACT]VITY Category 1,000 Gross Squar€ Feet Commercial (less than 300,000 sq.ft.)0.00 Commercial (300,000 sq.ft. or more)0.00 Freestandinq Eatinq & Drinkinq 0.00 NON-RETAIL DEVELOPMENT ACTIVITY Category 1,000 Gross Square Feet Lodqinq 0.00 lndustrial 500.37 Office (less than 50,000 sq.ft.)0.00 Office (50,000-299,999 sq.ft.)0.00 Office (300,000 so.ft. or more)0.00 Medical 0.00 Govemment 0.00 I nstitutional/Ed ucatronal 0.00 University (# of students)0.00 OTHER DEVELOPMENT ACTIVIry Description (Attach additional sheets if necessary) Daily Trips (Enter "0" if none) ENTER IF APPLICABLE 0.00 ENTER IF APPLICABLE 0.00 Page 3 2.. NEW ADJUSTMENTS CITY OF VERNON Date Prcpared: Ausust6,2o'ts 5 CMP Local Development Report Period: JUNE 1, 2014-MAY 3,,|.,2015 data for all cells labeled "Enter." lf there are no data for that cateoorv. enter "0." Lowruery Low Income Housing High Density Residential Near Rail Staffons Mixed Use Developments Near Rail Stations Development Agreements Entered into Prior to July '10, 1989 Reconstruction of Buildings Damaged due to "calamity" Reconstruction of Buildings Damaged in Jan. '1994 Earthquake Total Dwelling Units Total Non-residential sq. ft. (in 1,000s 1,000 Gross Square Feet Dwelling Units 1,000 Gross Square Feet Dwelling Units 1,000 Gross Square Feet Dwelling Units 1,000 Gross Square Feet Dwelling Units Page 4 Exempted Development Defi nitionsl 1. Lodvery Low lnmme Housing: As defined by the Califomia Department of Housing and Community Development as follows: - Low-lncome: egual to or less than 80% of the County median income, with adiustnents for family size. - Very LowJncome: equal to or less than 50% of the County median income, with adjustments for family size. 2. High Density Residential Near Rail Stations: Development located within 1/4 mile of a fixed rail passenger station and that is equal to or greater than '120 percent ofthe maximum residential density allowed under the local general plan and zoning ordinance, A project providing a minimum of 75 dwelling units per acre is automatically considered high density. 3. Mixed Uses Near Rail Stations: Mixed-use development located within 1/4 mile ofa fixed rail passenger station, if more than half of the land area, or floor area, of the mixed use development is used for high density residential housing. 4. Development Agreements: Poec;ts that entered into a development agreement (as specified under Sedion 65864 of the Califomia Govemment Code) with a local jurisdiction prior to Juty 10, 1989. 5. Reconstruction or replacement of any residential or non-residential strucfure which is damaged or destroyed, to the extent of > ot = to soyo of its reasonable value, by fire, flood, earthquake or other similar calamity. 6. Any proiect of a federal, state or county agency that is exempt from local .iurisdiction zoning regulations and where the local .iurisdiction is precluded ftom exercising any approvaudisapproval authority. These locally precluded projects do not have to be reported in the LDR. ACTIVITY City of Vernon 4305 Santa Fe Avenue Vemon, CA 90058 (323) s13-88 r I Vemon City Hall City Council Chambers 4305 Santa Fe Avenue Vernon, CA 90058 Tuesday, August lE, 2015 at 9:00 a.m. (or as soon thereafter as the matter can be heard) Dedeaux Propertieg LLC Dedeaux Propertieg LLC is requesting approval ofa conditional use permit to construct and operate a commercialretail facility. The proposed Project is for a 13,835 square foot commerciaUretail building comprised of two one-story buildings in the City of Vernon. The site is cunently vacant and unpaved with no defined drainage pauem. 1810 25s Sfi€et, Vernon, CA 9fi)58 The application, maps, and supporting information are available for public review during normal business hours in the VemonPublic Works, Water& Development ServicesDeparhnent, located at 4305 Santa Fe Avenue, Vernon, CA 90058, between the hours of7:15 a.m. and 5:15 p.m. Monday through Thursday. Staffplans to recommend that the Vemon City Council determine that the proposal will not have a significat effect on the environment and is exempt fiom the Califomia Environmental Quality Act (CEQA). The conditions imposed on the conditional use permit are designed to protect the environmen! public health, safety and general welfare. NOTICE OF PT]BLIC HEARING The City Council of the City of Vemon will conduct a Public Hearing, which you may attend. PLACE: DATE & TIME: APPLICANT: REQUEST: PROPf,RTY DTVOLVED: R-EYIEW OF: THE FILE: PROPOSED CEQA FINDING: Ifyou challenge the granting ofthe conditional use permit or any provisions thereof in court, you may be limited to raising only those issues you or someone else raised at the hearing described in this notice or in written conespondence delivered to the City of \Ernon at, or prior to, the meeting. The hearing may be continued or adjoumed or cancelled and rescheduled to a stated time and place without further notice ofa public hearing. Dated:olq I t., MINUTES OF THE REGULAR CITY COUNCIL MEETING OF THE CITY OF VERNON HELD TUESDAY, JULY 21, 2015, IN THE COUNCIL CHAMBER OF THE CITY HALL LOCATED AT 4305 SANTA FE AVENUE, VERNON, CALIFORNIA MEMBERS PRESENT: McCormick, Davis, Ybarra, and Woodruff-Perez MEMBERS ABSENT: None The meeting was called to order at 9:00 a.m. by Mayor McCormick. Mayor Pro-Tem Davis led the flag salute. CHANGES TO THE AGENDA Mayor McCormick announced there were no changes to the agenda. PUBLIC COMMENT Mayor McCormick announced that this was the time allotted for public comment, and inquired whether anyone in the audience wished to address the City Council. The public will also be given an opportunity to comment on matters on the posted agenda during Council deliberation. Anthony Michael Lides (Community Member) Mr. Lides expressed gratitude for the life-saving assistance that the Vernon Fire Department provided in response to a motorcycle accident he had on the 710 Freeway (Chief Mike Wilson reported on the accident at the last City Council Meeting). Dean Richens, Fire Captain, provided additional details about the accident and the injuries sustained by Mr. Lides. Mr. Lides resides in New York, and returned to visit the City of Vernon to express to City Council his appreciation for the Fire Department. PRESENTATIONS 1. Personnel Matters - Service Pin Awards. June 2015 Anniversary Employee Name Job Title Years Martin Sanchez Street Maintenance Worker 30 Director of Human Resources Teresa McAllister reported on the item. Mr. Sanchez was present to receive his Service Pin. Mayor McCormick announced that Agenda Item #2 would be moved to follow Agenda Item No. 4. 3. Update on the I-710 Freeway Major Investment Study. Director of Public Works, Water and Development Services, Kevin Wilson introduced the item. Mr. Wilson introduced Shannon Willits (AECOM), Ernesto Chavez (Los Angeles County Metropolitan Transportation Authority), and Yvette Kirrin (Gateway Cities Council of Governments), who each spoke on the different aspects of the 710 Project. The presentation included items of focus that included: area study, purpose, community participation framework, project alternatives, timeline, etc. 4. Update of Current Development Projects in the City. Mr. Wilson gave a PowerPoint presentation on the development that is occurring within the City and/or any proposed projects. The presentation included slides of different pending projects, stating that some may or may not come to fruition since they are in their initial stages. Mr. Wilson also provided information to indicate that there is a rise in development within the city, but was unclear if this trend would continue and/or for how long. Regular City Council Meeting Minutes July 21, 2015 Page 2 of 10 Mark Whitworth, City Administrator, explained that although the City may be build-out, there are older buildings, and there may be a need to reassess and analyze what new businesses the City may want to attract. 2. California Highway Patrol “10851” Grand Theft Auto Recovery Award. Agenda Item No. 2 was tabled until next meeting. CONSENT CALENDAR It was moved by Davis and seconded by Ybarra to approve all matters listed under the Consent Calendar under one motion as presented. Motion carried, 5-0. Claims Against the City – Received and Filed 5. None Minutes – To be Received and Filed 6. Minutes of the Regular City Council Meeting held June 16, 2015. 7. Minutes of the Regular City Council Meeting held July 7, 2015. Warrant Registers 8. Ratification of City Warrant Register No. 1427 to record voided Check No. 347913 in the amount of $1,112.67. 9. Ratification of Light & Power Warrant Register No. 392 to record voided Check No. 511473 in the amount of $500.00. 10. Approval of City Payroll Warrant Register No. 709, totaling $2,680,161.99, which covers the period of June 1 through June 30, 2015, and consists of the following: A. Ratification of direct deposits, checks and taxes totaling $1,917,448.24; and B. Checks and electronic funds transfers paid through General bank account totaling $762,713.75. 11. Approval of City Warrant Register No. 1428, totaling $1,528,651.14, which covers the period of June 30, through July 13, 2015, and consists of the following: A. Ratification of wire transfers totaling $1,080,305.72; and B. Ratification of the issuance of early checks totaling $271,148.43; and C. Authorization to issue pending checks totaling $177,196.99. 12. Approval of Light & Power Warrant Register No. 393, totaling $1,162,091.93, which covers the period of June 30, through July 13, 2015, and consists of the following: A. Ratification of wire transfers totaling $1,057,003.89; and B. Ratification of the issuance of early checks totaling $55,211.40; and C. Authorization to issue pending checks totaling $49,876.64. Regular City Council Meeting Minutes July 21, 2015 Page 3 of 10 13. Approval of Gas Warrant Register No. 181, totaling $421,357.32, which covers the period of June 30, through July 13, 2015, and consists of the following: A. Ratification of wire transfers totaling $419,372.50; and B. Ratification of the issuance of early checks totaling $1,984.82. City Administration Department 14. A Proclamation of the Mayor and the City Council of the City of Vernon declaring the Month of September 2015 as “Childhood Cancer Awareness Month” 15. Report on Contracts Exempt from Competitive Selection by the City Administrator. Recommendation: A. Find Receive and file this report as it is being provided for informational purposes only pursuant to Section 2.17.12(B)(3) of the Vernon Municipal Code. 16. Council Conference Attendance Report to the Independent Cities Association 55th Annual Summer Seminar. Recommendation A. Receive and file the Council Conference Attendance Report. Fire Department 17. Activity Report for the period of June 16 through June 30, 2015, to be received and filed. Health and Environmental Control Department 18. June 2015 Monthly Report, to be received and filed. 19. Receipt and Review of the Annual City of Vernon Jail Inspection Report to the California Board of Corrections. Recommendation: A. Find the submittal and review of the subject documents 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 an effect on the environment; and B. Receive and File the 2015 Annual City of Vernon Jail Inspection Report. Police Department 20. Activity Log and Statistical Summary of Arrests and Activities for the period of June 16, through June 30, 2015, to be received and filed. NEW BUSINESS City Administration Department 21. Approval and Authorization of a Local Cash Match Commitment Letter with Southern California Association of Governments (SCAG) regarding the Los Angeles River Bikeway Feasibility Study. Recommendation: A. Find that the recommended actions are exempt from the California Environmental Quality Act (“CEQA”), because (a) approval of the Local Cash Match Commitment Letter is not an “approval” as defined by Section 15352 due to its conditional Regular City Council Meeting Minutes July 21, 2015 Page 4 of 10 nature; and (b) the City of Vernon is neither the “lead agency” as defined in Sections 15051 and 15367 nor a “responsible agency” as defined in Section 15381. Moreover, the actions recommended are statutorily exempt from CEQA review under CEQA Guidelines Section 15262, because it only involves a feasibility study for possible future actions which the City of Vernon has not approved, adopted, or funded; and B. Approve and Authorize the City Administrator to execute the Local Cash Match Commitment Letter with SCAG. Economic Development Manager Alex Kung introduced this item and explained Vernon’s recent grant award from SCAG, and the City’s corresponding matching funds requirement for technical feasibility study for a potential bike trail along the L.A. River. It was moved by Ybarra and seconded by Martinez to authorize a local cash match commitment letter with SCAG regarding the Los Angeles River Bikeway Feasibility Study. Motion carried, 5-0. City Attorney Department 22. Approval of an Amendment No. 1 to the Attorney Services Agreement between the City of Vernon and Liebert Cassidy Whitmore to provide personnel and labor law attorney services. Recommendation: A. Find that approval of the proposed Attorney Services Agreement with Liebert Cassidy Whitmore is exempt under the California Environmental Quality Act (“CEQA”) in accordance with CEQA Guidelines section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and B. Authorize the City Administrator to enter into an Amendment No. 1 to the Attorney Services Agreement between the City of Vernon and Liebert Cassidy Whitmore, in substantially the same form as submitted with the staff report, for an additional one- year period in an amount not to exceed $150,000.00. Brian Byun, Deputy City Attorney, presented the item and gave information on the one-year renewal, which was selected after the City’s RFP process. It was moved by Davis and seconded by Woodruff-Perez to approve amendment no. 1 to the attorney services agreement with Liebert Cassidy Whitmore. Motion carried, 5-0. City Clerk Department 23. Resolution No. 2015-50 - A Resolution of the City Council of the City of Vernon updating City staff members’ appointments to various external agencies and/or committees. Recommendation: A. Find that approval of the proposed Resolution updating Staff’s appointments does not constitute a “project” pursuant to section 15378(b)(2) of the Guidelines to the California Environmental Quality Act (“CEQA”), because it constitutes an administrative activity; and even if the adoption of the proposed resolution did constitute a project, it would be exempt from CEQA in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and B. Appoint Staff as delegate(s) and alternate(s) to the following boards of various agencies and/or committees as follows; and Regular City Council Meeting Minutes July 21, 2015 Page 5 of 10 1. Gateway Region Integrated Water Management Joint Power Authority also known as Gateway Water Management Authority Policy Board. Appoint Director of Public Works, Water and Development Services as the delegate; and appoint as alternates, Public Works and Water Superintendent and Stormwater and Special Projects Analyst. Previous appointment at the October 2, 2007 City Council Meeting: Kevin Wilson as the delegate; and Scott Rigg and Woody Natsuhara as the alternates. 2. Southern California Public Power Authority. Appoint Director of Gas and Electric as the delegate; and appoint as alternates the Electrical Resources Planning & Development Manager and the Utilities Compliance Manager. Previous appointment, pursuant to Resolution No. 9845: Donal O’Callaghan as the delegate; Abraham Alemu as the alternate. 3. LA-RICS Authority. Appoint City Administrator as the delegate, with the authorization to designate a proxy to vote on behalf of the City. Previous appointment, pursuant to Resolution No. 9883: Eric Fresch as the delegate; Steve Towles through letters dated March 30, 2009 and May 11, 2009 appointed as proxy. C. Adopt a Resolution of the City Council of the City of Vernon designating and appointing its representatives and alternates to the various boards of the above referenced agencies to represent the City of Vernon. Maria Ayala, City Clerk, presented this item, and explained that this item will be presented to Council in the future on a yearly basis at the same time the Council appointments are made to external agencies. Council requested clarification on the title of the positions being appointed as representatives to the agencies versus the name of the employee. It was clarified that the position would be appointed, and the individual serving in that capacity will be able to represent the City at those respective meetings. It was moved by Davis and seconded by Ybarra to approve Resolution No. 2015-50. Motion carried, 5-0. Fire Department 24. Approval to Lease Two (2) 2016 Pierce PUC Triple Combination Pumpers for the Fire Department. Recommendation: A. Find that approval of the proposed lease is exempt under the California Environmental Quality Act (“CEQA”), because the proposed action is an administrative activity that will not result in direct or indirect physical changes in the environment and therefore does not constitute a “project” as defined by CEQA Guidelines section 15378. Furthermore, even if it were a project, this action would be exempt from CEQA review pursuant to CEQA Guidelines section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and B. Approve and authorize the execution of a ten (10) year Lease-Purchase Agreement with Oshkosh Capital in the amount of $1,321,836.49, in substantially the same form as submitted with the staff report, for two (2) 2016 Pierce PUC Triple Combination Pumpers for the Fire Department that will replace two current engines that were purchased in 1989 and no longer meet the needs of the department. Regular City Council Meeting Minutes July 21, 2015 Page 6 of 10 Mike Wilson, Fire Chief, introduced the item and explained the process of acquiring the fire engines, leases, and replacement schedules. John Van de Kamp, Independent Reform Monitor, asked if this item had been budgeted. Chief Wilson confirmed that these had been budgeted. It was moved by Ybarra and seconded by Martinez to approve the lease of two (2) 2016 Pierce PUC Triple Combination Pumpers. Motion carried, 5-0. Gas and Electric Department 25. Approve the Antelope DSR 1 Solar Project – Power Sales Agreement by and between the City of Vernon and the Southern California Public Power Authority. Recommendation: A. Find that approval of the Power Sales Agreement (“Agreement”) by and between the City of Vernon (“City”) and the Southern California Public Power Authority (“SCPPA”) in connection with the Antelope DSR 1 Solar Project is not subject to the California Environmental Quality Act (“CEQA”) under Guidelines Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment. Purchasing power is purely a financial transaction, and any construction that may occur by a private party in the future in reliance on this approval would be subject to CEQA review by another governmental agency at the time when actual details of any physical proposal would be more than speculative; and B. Approve and authorize the Director of Gas and Electric to execute the Agreement by and between the City and the SCPPA, in substantially the same form as attached to the staff report, for the purpose of purchasing solar power with associated green attributes in compliance with the Renewable Resources Procurement Plan and Enforcement Program in force at the City. The terms include the purchase of 25 megawatts of solar power for a term of 20 years beginning with the project commercial operation date; and C. Approve and authorize the Director of Gas and Electric to execute the Purchase Option Agreement and the Storage Option Agreement (“Option Agreements”) by and between the City of Vernon and SCPPA in substantially the same form as attached to the staff report; and D. Find that approval of the power sales agreement and the option agreements comply with the competitive bidding requirements of the Vernon Municipal Code in that: (a) Vernon Municipal Code § 2.17.12(A)(6) exempts these contracts from the competitive bidding requirements because each is categorized as a “contract for the acquisition, sale or transmission of electrical power”; and (b) these contracts are between SCPPA (a joint powers agency) and Vernon, and Vernon Municipal Code 2.17.12(A)(5) exempts these contracts and all other “contracts with other governmental entities or their contractors for labor, materials or supplies”. Further, find that approval of these contracts is consistent with the purposes of the City’s purchasing regulations because SCPPA conducted a competitive process and received several proposals, of which, the Antelope DSR 1 Solar Project was the lowest priced project for projects under 100 megawatts, and the project is scheduled to begin commercial operation in third quarter of 2016. Carlos Fandino presented the item and briefly explained the different aspects about the 50 megawatt project. The Council had questions regarding: the budgeting of this item; and anticipating if whether or not cost would drop. Mr. Fandino confirmed that it had been budgeted and staff has been working on this for quite some time. He also added that it would be difficult to determine, at this point, if the cost would drop or when. Regular City Council Meeting Minutes July 21, 2015 Page 7 of 10 Mr. Van de Kamp inquired as to how many megawatts the City would be purchasing per year under this agreement, and what this renewable requirement would mean. Mr. Fandino informed that the City would be subject to get 25 megawatts of capacity per hour, per year for the contract term. And that it will increase the purchase of renewables but at a lower cost. It was moved by Ybarra and seconded by Davis to the Antelope DSR 1 Solar Project, Power Sales Agreement with Southern California Public Power Authority. Motion carried, 5-0. Human Resources Department 26. Adoption of City of Vernon Personnel Policies and Procedures, Hours of Work II-4 (new) and Personnel Records and General Personnel Files III-2 (new). Recommendation: A. Find that approval of the proposed personnel policy and procedures 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. Adopt the Personnel Policy and Procedures, Hours of Work II-4 (new), Personnel Records and General Personnel Files III-2 (new) and incorporate into the Personnel Policies and Procedures Manual; and C. Authorize the City Administrator and the Director of Human Resources to execute and distribute the above-referenced policies to all employees. Ms. McAllister introduced the new policies as they are in response to the good governance reforms and explained each policies impact. It was moved by Ybarra and seconded by Woodruff-Perez to adopt Personnel Policies and Procedures, Hours of Work II-4 (new) and Personnel Records and General Personnel Files III-2 (new). Motion carried, 5-0. ORDINANCES 27. Ordinance No. 1230 - An Ordinance of the City Council of the City of Vernon amending section 2.123(a) Of Article XVII of Chapter 2 of the Vernon Municipal Code relating to the Vernon Housing Commission. (second reading) Recommendation: A. Find that the recommended actions are exempt from 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 an effect on the environment; and B. Adopt the Ordinance to amend Section 2.123(a) of the Vernon Municipal Code to establish Commission Member terms to run from July 1 through June 30, effective July 1, 2019 for four of the seven seats, and effective July 1, 2021 for the three remaining seats; and C. Include uncodified sections to establish the following upcoming terms in order to fully effectuate the July 1 through June 30 terms: Appointing Category Term Resident/Council Member August 11, 2017 – June 30, 2021 Resident No. 1 August 11, 2017 – June 30, 2021 Resident No. 2 August 11, 2015 – June 30, 2019 Business Representative No. 1 August 11, 2015 – June 30, 2019 Business Representative No. 2 August 11, 2017 – June 30, 2021 Regular City Council Meeting Minutes July 21, 2015 Page 8 of 10 Business Representative No. 3 August 11, 2015 – June 30, 2019 Employee of Vernon Business August 11, 2015 – June 30, 2019 Mayor McCormick announced the proposed ordinance by title. Kristen Enomoto, Deputy City Administrator, reported on the item. On a motion by Davis and second by Woodruff-Perez, City Clerk Maria Ayala took a roll call vote as follows: Ayes: McCormick, Davis, Martinez, Ybarra, and Woodruff-Perez Noes: None Abstentions: None Absent: None DISCUSSION ITEM AND POSSIBLE DIRECTIVES TO STAFF 28. Discussion of Proposed Elimination of Priority for First Responders in Leasing City- Owned Housing. Recommendation: A. Hold a discussion regarding the joint recommendation made by the Housing Commission and City staff to eliminate the priority for first responders in leasing City-owned housing. B. If the City Council concurs with the aforementioned recommendation, direct staff to prepare an ordinance to amend Section 2.125(b) of the Vernon Municipal Code to remove the first responder leasing priority, effective at 5:01 p.m. on December 8, 2015. Ms. Enomoto introduced the item. Council held discussion regarding the “First Responder” priority, how it would be determined, the need for, etc. After considerable discussion the Council agreed to table this item until more information can be compiled, such as feedback from the businesses. ORAL REPORTS 29. City Administrator Reports – brief reports on activities and other brief announcements by the City Administrator and Department Heads. Police Chief Daniel Calleros reported on the following: July 7 a reported sexual assault; July 13 a trailer burglary report; July 15 a sexual battery report; and that detectives have identified a vandalism suspect that had been committing several acts of vandalism over the last few months. Police Captain Michael Gillman reported on vandalism that was captured by video on the 4500 Block of Maywood Avenue. Fire Chief Mike Wilson commended Mr. Lides for coming in to speak about his motorcycle accident. Mr. Wilson also reported on the following: continued training drills; and the following significant incidents: alarm fire in the City of Downey, and response to a fully involved tractor trailer fire. Director of Public Works, Water and Development Services Kevin Wilson reported on the following: railroad will be closing Santa Fe Avenue to do repair on railroad tracks; and that the City will be testing the new generator after working hours to ensure it is properly working. Mayor McCormick inquired about the City’s past practice in recognizing developers in the City, and potentially bringing this back. Mr. Wilson responded that he would research what was done, and bring an update back to Council. Director of Gas & Electric, Carlos Fandino reported on a recent outage, and an issue at pump house number 2 with a blown meter. Emergency action is needed to address this issue. Mr. Fandino Regular City Council Meeting Minutes July 21, 2015 Page 9 of 10 reported on the proposal that was received and work needed. Mr. Wilson affirmed that this is an urgent matter that requires immediate attention. Mr. Byun also stated that there are emergency provisions in the Vernon Municipal Code that allow for any necessary action to take place in these matters, with a report back to Council at the its next meeting. Finance Director William Fox reported that on July 9, the City had its bond sale, with all bonds up for sale selling within the first hour. Today was the actual closing of the bonds, and the transaction (with all paperwork) was completed as of this morning 8 a.m. Mr. Fox further explained how the City’s debt is managed. He will be providing a financial quarterly report. Director of Health and Environmental Control Leonard Grossberg did not provide a report. Director of Human Resources Teresa McAllister reported on the recent testing of over 200 applicants for the one vacancy of Accounting Technician. Alex Kung, Economic Development Manager, reported on the following: CA Competes Workshop will be held on July 27 herein Council Chambers; the City submitted for a Most Business Friendly City Award application with the LAEDC; also announced that a Vernon business, Pacific American Fish Company, was featured in the L.A. Business Journal, and honored at the L.A. Business Asian Awards. The City would also like to honor and acknowledge them for their accomplishment. The property across the street from 5001 Soto, the City has received numerous offers and inquiries about the property. There are some good technology businesses that have shown interest. He will continue to keep Council apprised. City Clerk announced the new Office of the City Clerk informative pamphlet for residents that has been published and will be distributed; announced that from the City’s efforts to start a collaboration amongst local area City Clerks, the City of Bell and the City of Downey have committed to hosting City Clerk sessions for the group in the next few months; a presentation to Council is being prepared to present to Council at its second meeting in August. Fred McFarlane, Senior Advisor to the City Administrator, reported on the following: July 25 Vernon Village Park Open House, and pertinent information; the True Detective HBO television series and its fictional storyline that does not necessarily parallel Vernon’s history. Deputy City Administrator Kristen Enomoto reported on the Housing related matters such as upcoming Commission seat vacancies, and the upcoming remodel project. City Administrator Mark Whitworth reported on the following: he, Mr. Kung, the Mayor and the Mayor ProTem attended the ICA Summer Seminar in Rancho Santo Bernardo, and briefly summarized some of the topics discussed such as how the State is handling cannabis; held first year-end review meeting with the Vernon CommUNITY Fund consultant, Jemmott Rollins, and explained the process and progress; thanked all of the staff that are working with Mr. Van de Kamp on his report due out on July 31st. Mr. Van de Kamp thanked staff for getting back to him on his requests for information for his report. Mr. Van de Kamp recommended to Mr. Kung to look into the idea of recognizing individual businesses by City Council. 30. City Council Reports – brief report on activities, announcements, or directives to staff. No reports provided by the City Council. Mayor McCormick recessed the meeting at 11:22 a.m. and reconvened at 11:29 a.m. CLOSED SESSION At 11:29 a.m. the City Council entered into closed session to discuss the following agendized items: Regular City Council Meeting Minutes July 21, 2015 Page 10 of 10 31. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Significant Exposure to Litigation. Government Code Section 54956.9(d)(2) & (4) Number of potential cases: 1 The City is a real party in interest in litigation likely to be brought by certain environmental groups to challenge a final order of the State Water Board in connection with a municipal storm sewer system permit order. Pursuant to state law, the environmental groups have until July 27, 2015 to initiate the litigation to challenge the administrative body’s final order. 32. CONFERENCE WITH REAL ESTATE NEGOTIATIONS Government Code Section 54956.8 Property: 3200 Fruitland Ave Vernon, CA Agency Negotiator: Mark Whitworth, City Administrator/Alex Kung Economic Development Manager Negotiating Party: 3200 Fruitland GAP, LLC, Xebec Under Negotiation: Price and Terms of Assignment and Assumption of Purchase and Sale Agreement 33. CONFERENCE WITH REAL ESTATE NEGOTIATIONS Government Code Section 54956.8 Property: 3200 Fruitland Ave Vernon, CA Agency Negotiator: Mark Whitworth, City Administrator/Alex Kung Economic Development Manager Negotiating Party: PI Fruitland, LLC Under Negotiation: Price and Terms of Assignment and Assumption of Purchase and Sale Agreement At 11:51 a.m. the City Council exited closed session. Bryan Byun, Deputy City Attorney, reported out from closed session that for Agenda Item No. 31 the Council unanimously approved the legal services agreement to represent and defend the City in certain anticipated litigation regarding the L.A. Municipal MPDES permit. No other reportable action was taken with respect to Agenda Item Nos. 32 and 33. With no further business, at 11:52 a.m., Mayor McCormick adjourned the meeting. ________________________ W. Michael McCormick Mayor ATTEST: _________________________ Maria E. Ayala City Clerk MINUTES OF THE REGULAR CITY COUNCIL MEETING OF THE CITY OF VERNON HELD TUESDAY, AUGUST 4, 2015, IN THE COUNCIL CHAMBER OF THE CITY HALL LOCATED AT 4305 SANTA FE AVENUE, VERNON, CALIFORNIA MEMBERS PRESENT: McCormick, Davis, Ybarra, Martinez and Woodruff-Perez MEMBERS ABSENT: None The meeting was called to order at 9:00 a.m. by Mayor McCormick, who also led the flag salute. CHANGES TO THE AGENDA Mayor McCormick announced that Item No. 2, the presentation of the California Highway Patrol “10851” Grand Theft Auto Recovery Award, is postponed to the August 18, 2015 City Council meeting. PUBLIC COMMENT Mayor McCormick announced that this was the time allotted for public comment, and inquired whether anyone in the audience wished to address the City Council. The public will also be given an opportunity to comment on matters on the posted agenda during Council deliberation. There was no response. PRESENTATIONS 1. Senator Ricardo Lara’s (33rd Senate District) Young Senators Program. Jesus Diaz, Field Representative for Ricardo Lara introduced the program and participant Alyssa Bravo, Vernon resident. Bravo presented on her experience in the program. 2. California Highway Patrol “10851” Grand Theft Auto Recovery Award. Item is postponed to the August 18, 2015 City Council meeting. 3. Badge Presentation Ceremony for new Fire Engineer, Jason Rosa. Fire Chief Michael Wilson reported on the promotion. Newly appointed Fire Engineer Rosa thanked the Council, Fire Chief, crew and family for the support and opportunity. 4. Financial update for Fiscal Year ending June 30, 2015. Finance Director William Fox conducted the presentation. CONSENT CALENDAR It was moved by Davis and seconded by Woodruff-Perez to approve all matters listed under the Consent Calendar under one motion as presented. Motion carried, 5-0. Claims Against the City – Received and Filed 5. None Warrant Registers 6. Approval of City Warrant Register No. 1429, totaling $2,132,199.60, which covers the period of July 14, through July 27, 2015, and consists of the following: Regular City Council Meeting Minutes August 4, 2015 Page 2 of 10 A. Ratification of wire transfers totaling $1,757,002.24; and B. Ratification of the issuance of early checks totaling $193,300.61; and C. Authorization to issue pending checks totaling $81,896.75. 7. Approval of Light & Power Warrant Register No. 394, totaling $6,189,431.15, which covers the period of July 14, through July 27, 2015, and consists of the following: A. Ratification of wire transfers totaling $6,108,687.04; and B. Ratification of the issuance of early checks totaling $52,073.95; and C. Authorization to issue pending checks totaling $28,670.16. 8. Approval of Gas Warrant Register No. 182, totaling $23,095.04, which covers the period of July 14, through July 27, 2015, and consists of the following: A. Ratification of the issuance of early checks totaling $16,722.05; and B. Authorization to issue pending checks totaling $6,372.99. 9. Approval of RDA Obligation Fund Warrant Register No. 25, totaling $7,000.00, which covers the period of April 2, through July 27, 2015, and consists of the following: A. Ratification of the issuance of early checks totaling $7,000.00. 10. Approval of Asset Forfeiture State Warrant Register No. 1, totaling $124,960.00, which covers the period of July 14, through July 27, 2015, and consists of the following: A. Ratification of the issuance of early checks totaling $124,960.00; and City Administration Department 11. Report on Contracts Exempt from Competitive Selection by the City Administrator. Recommendation: A. Receive and file this report as it is being provided for informational purposes only pursuant to Section 2.17.12(B)(3) of the Vernon Municipal Code. Fire Department 12. Activity Report for the period of July 1 through July 15, 2015, to be received and filed. Police Department 13. Activity Log and Statistical Summary of Arrests and Activities for the period of July 1, through July 15, 2015, to be received and filed. Public Works, Water and Development Services Department 14. June 2015 Monthly Building Department Report, to be received and filed. / / / / / / Regular City Council Meeting Minutes August 4, 2015 Page 3 of 10 NEW BUSINESS City Administration Department 15. Ratification of Mayor’s Appointment of Eligible Individuals to Serve on the Vernon Housing Commission for New Four-Year Terms Beginning August 11, 2015 and Ending June 30, 2019. Recommendation: A. Find that ratification of the Mayor’s appointment of eligible individuals requested in this staff report is exempt from 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 an effect on the environment; and B. Ratify the Mayor’s appointment of the following eligible individuals to serve on the Vernon Housing Commission for new four-year terms beginning August 11, 2015: Mayor’s Appointment Eligible Appointment Category John Kriste (Incumbent) Resident (Non-City Council member) Steve Florman Business Representative Kyle Cooper Business Representative Hector Garcia (Incumbent) Business Employee It was moved by Martinez and seconded by Davis to ratify the Mayor’s appointment of the above referenced to the Vernon Housing Commission. Motion carried, 5-0. 16. Proposed “Opt-Out” Opportunity for Vernon Tenants Impacted by the Vernon Housing Remodel Project. Recommendation: A. Find that approval and authorization of the proposed “opt-out” option related to the remodel of City-owned housing units 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 an effect on the environment; and B. Approve and authorize staff to provide the seven tenants impacted by the proposed Vernon Housing Remodel Project an “opt-out” opportunity. Councilmembers Martinez and Ybarra both made statement recusing themselves from the proposed due to a conflict of interest as they both live in City owned housing and a decision on whether to opt-out of the currently pending remodel program will have a direct, reasonable foreseeable and material effect on their personal finances. Specifically, the proposed improvements will result in an increase to their rent. Both Martinez and Ybarra exited the Council Chamber. Deputy City Administrator Kristen Enomoto reported on and explained the reasoning for the proposed. In response to Mayor Pro-Tem Davis, Enomoto reported on the funds to be used to cover the remodel expenses. It was moved by Davis and seconded by Woodruff-Perez to approve and make available the “opt- out” opportunity to the seven tenants impacted by the Vernon Housing Remodel Project. Motion carried, 3-0. Councilmembers Martinez and Ybarra reentered the Chamber and the meeting. Regular City Council Meeting Minutes August 4, 2015 Page 4 of 10 Fire Department 17. Resolution No. 2015-51 - A Resolution of the City Council of the City of Vernon approving and authorizing the execution of a master lease purchase agreement by and between the City of Vernon and Oshkosh Capital for two 2016 Pierce PUC Triple Combination Pumpers. Recommendation: A. Find that approval of the proposed resolution is exempt from California Environmental Quality Act ("CEQA") review, because it is an administrative purchasing activity that will not result in direct or indirect physical changes in the environment, and therefore does not constitute a "project" as defined by CEQA Guidelines section 15378. Furthermore, even if it were a project, because such activity will not have any effect on the environment, this action would be exempt from CEQA review pursuant to CEQA Guidelines Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and B. Adopt the resolution establishing the terms set with Oshkosh Capital for the recently approved ten (10) year Lease-Purchase Agreement for two (2) 2016 Pierce PUC Triple Combination Pumpers. Fire Chief Michael Wilson reported on the proposed. It was moved by Martinez and seconded by Ybarra to approve Resolution No. 2015-51. Motion carried, 5-0. Gas and Electric Department 18. Resolution No. 2015-52 - A Resolution of the City Council of the City of Vernon approving an amended City of Vernon utilities department rules for electric service. Recommendation: A. Find that the approval of the City of Vernon Revised Electric Rule No. 2 is exempt from California Environmental Quality Act (“CEQA”) review because it is general policy and procedure making that will not result in direct or indirect physical changes in the environment, and therefore does not constitute a “project” as defined by CEQA Guidelines §15378; and B. Approve the resolution to thereby, amend Section (H.2) of Rule 2 of the City of Vernon’s Rules for Electric Service to state that effective August 4, 2015 customers being served by the Customer-Financed Added Facilities shall pay a monthly charge of 0.33% of the amount advanced, and customers being served by City- Financed Added Facilities shall pay a monthly charge of 1.0% of the additional cost associated with the Added Facilities. Changes are being requested to the following City documents: Electric Service Rule No. 2 - Description of Service. Electrical Resources Planning & Development Manager Abraham Alemu provided the oral repot on the proposed. In response to Mayor Pro-Tem Davis, Alemu clarified when the proposed will impact businesses. It was moved by Ybarra and seconded by Davis to approve Resolution No. 2015-52. Motion carried, 5-0. 19. Resolution No. 2015-53 - A Resolution of the City Council of the City of Vernon approving and authorizing the execution of an added facilities agreement by and between the City of Vernon and Grand Packaging Inc. Regular City Council Meeting Minutes August 4, 2015 Page 5 of 10 Recommendation: A. Find that the approval of an Added Facilities Agreement with Command Packaging is categorically exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines §15301(b), because this approval will merely lead to the possible construction of additional laterals and related meters to deliver electric service, and such construction is, at most, a negligible expansion of the existing facilities of the City’s electric utility; and B. Approve the resolution to thereby permit the execution of an Added Facilities Agreement by and between the City of Vernon and Grand Packaging Inc. pursuant to Rule No. 2.H which provides long-term benefits for the Customer and the Department. Electrical Resources Planning & Development Manager Abraham Alemu provided the oral report. It was moved by Woodruff-Perez and seconded by Martinez to approve Resolution No. 2015-53. Motion carried, 5-0. 20. Resolution No. 2015-54 - A Resolution of the City Council of the City of Vernon approving and adopting the natural gas rebate program for customers connected to the City’s gas distribution system. Recommendation: A. The City Council find that the approval of a CARB Rebate Program 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 an effect on the environment; and B. Adopt a resolution approving, establishing and implementing a natural gas CARB Rebate Program to customers connected to City’s gas distribution system. The Program will be funded through rate schedule, “G-CARB” covering the cost of greenhouse gas emission allowances associated with the “cap-and-trade” program initiated by the California Air Resources Board (“CARB”); and C. Find that the Natural Gas Rebate Program as attached to the resolution be approved with an effective date of September 1, 2015. Electrical Resources Planning & Development Manager Abraham Alemu reported on the proposed. It was moved by Ybarra and seconded by Davis to approve Resolution No. 2015-54. Motion carried, 5-0. 21. Request for Approval of an Agreement with Absolute International Security, Inc. in Response to the City’s Request for Proposals for Unarmed Security Guard Services. Recommendation: A. Find that proposed agreement by and between the City of Vernon and Absolute International Security, Inc. (“AIS”) is exempt under the California Environmental Quality Act (“CEQA”) in accordance with CEQA Guidelines Section 15061(b)(3), the general rule that CEQA only applies to projects that may have a significant effect on the environment, because the agreement does not have an impact; and B. Accept the proposal from AIS as the most qualified and cost effective respondent, rejecting all other proposals; and C. Award and authorize the execution of the services agreement by and between the City of Vernon and Absolute International Security, Inc., in substantially the same form as submitted with the staff report, for unarmed security guard services. The proposed contracted services equate to a total compensation amount not-to-exceed Regular City Council Meeting Minutes August 4, 2015 Page 6 of 10 $253,294.00 per year, with an incremental increase of up to 5% to be considered over the three (3) year term of the agreement. Electrical Resources Planning & Development Manager Abraham Alemu reported on the proposed agreement for unarmed security guard services. In response to Mayor McCormick, Alemu confirmed the patrolling of the sites. Mark Warm of Absolute International Security Inc. reported on the company’s experience and proposed plan. Warm further reported on the staffing in response to Mayor Pro-Tem Davis’ inquiry. It was moved by Martinez and seconded by Ybarra to approve an agreement with Absolute International Security Inc. for unarmed security guard services. Motion carried, 5-0. Human Resources Department 22. Adoption of City of Vernon Personnel Policies and Procedures, Harassment/Discrimination Free Workplace III-7 (new format) and Voluntary Respiratory Safety Equipment – Non-Safety Personnel VI-1 (new). Recommendation: A. Find that approval of the proposed personnel policy and procedures is exempt from California Environmental Quality Act (“CEQA”) review, because it is a general policy and procedure making activity that will not result in direct or indirect physical changes in the environment, and therefore does not constitute a “project” as defined by CEQA Guidelines section 15378. Furthermore, even if it were a project, because such activity will not have any effect on the environment, this action would be exempt from CEQA review pursuant to CEQA Guidelines Section 15061(b)(3), the general rule that CEQA only applies to projects that may have a significant effect on the environment; and B. Adopt the Personnel Policy and Procedures, Harassment/Discrimination Free Workplace III-7 (new format) and Voluntary Respiratory Safety Equipment – Non- Safety Personnel VI-1 (new) and incorporate into the Personnel Policies and Procedures Manual; and C. Authorize the City Administrator and the Director of Human Resources to execute and distribute the above-referenced policies to all employees. Human Resources Director Teresa McAllister reported on the proposed policies. In response to Mayor Pro-Tem Davis, McAllister reported on the potential fiscal impact. It was moved by Davis and seconded by Woodruff-Perez to adopt the Personnel Policies and Procedures. Motion carried, 5-0. Police Department 23. Authorize the Donation of 2005 Chevy Tahoe to the City of San Fernando Police Department Reserve Officer Program. Recommendation: A. Find that approval of the proposed donation 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 an effect on the environment; and B. Authorize the donation of a surplus 2005 Chevy Tahoe Patrol Vehicle, to be conveyed to the City of San Fernando Police Department Reserve Officer Program; and Regular City Council Meeting Minutes August 4, 2015 Page 7 of 10 C. Enter into a donation and release agreement, in substantially the same form as submitted with the staff report, with the City of San Fernando Police Department, to use and retain as needed by the Reserve Police Officer Program. Police Chief Daniel Calleros reported on the proposed donation. It was moved by Ybarra and seconded by Woodruff-Perez to authorize the donation of the 2005 Chevy Tahoe to the City of San Fernando Police Department. Motion carried, 5-0. Public Works, Water and Development Services Department 24. 5-Year Capital Improvement Plan 2015-2020. Recommendation: A. Find that review of the proposed 5-Year Capital Improvement Plan FY 2015-20 is not a project pursuant to the California Environmental Quality Act (“CEQA”) Guidelines Section 15378(b) because such activity has no potential for resulting in any change (direct or indirect, physical or otherwise) in the environment, is purely administrative in nature and concerns general government fiscal activity that does not involve any commitment to any specific project; and B. Review and provide direction and comments regarding the proposed 5-Year Capital Improvement Plan. Director of Public Works, Water and Development Services Kevin Wilson presented on the plan. In response to Mayor Pro-Tem Davis’ concerns, Wilson reported on the condition of the underground waterlines and noted that it is not anticipated that they would need replacement within the proposed plan. Councilmember Ybarra expressed concerns regarding the traffic flow on Santa Fe Avenue. Wilson advised that the issue is not within the scope of this plan, but that the Department intends to reevaluate the matter. In response to Independent Reform Monitor John Van de Kamp, Wilson confirmed that the proposed capital improvements for the current fiscal year are budgeted items. Wilson further explained the pavement condition index and projections concerning underground waterlines. It was moved by Ybarra and seconded by Martinez to receive and file the 5-Year Capital Improvement Plan. Motion carried, 5-0. ORDINANCES 25. Approval of the following ordinances Granting U.S. Tow, Inc. and Mr. C’s Towing of South Gate Inc., A Franchise Towing Services Agreement: Ordinance No. 1231 - An Ordinance of the City Council of the City of Vernon granting to U.S. Tow, Inc., a franchise towing services agreement. Ordinance No. 1232 - An Ordinance of the City Council of the City of Vernon granting to Mr. C’s Towing of South Gate, Inc., a franchise towing services agreement Recommendation: A. Find that approval of a services agreement with US Tow Inc. and Mr. C’s Towing 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 Regular City Council Meeting Minutes August 4, 2015 Page 8 of 10 B. Hold the first reading of the proposed Ordinance granting to U.S. Tow, Inc., a franchise towing services agreement; and C. Hold the first reading of the proposed Ordinance granting to Mr. C’s Towing of South Gate, Inc., a franchise towing services agreement; and D. Authorize the Mayor to execute the franchise agreements on behalf of the City. Mayor McCormick introduced the Ordinances by title. Police Chief Daniel Calleros reported on the proposed franchise agreements and the request for proposal (RFP) process. In response to Councilmember Woodruff-Perez, Calleros reported that H.P. Tow Inc. (HP Tow) currently provides the services. In response to Mayor McCormick, Calleros further reported on the RFP review and selection process. Jimmy Sandhu of HP Tow provided material to the Council on the company’s services. Sandhu reported on the services provided to the City, questioned the integrity of the RFP process and requested that the Council table the matter until additional information is provided. Calleros provided a response to Sandhu’s comments and in response to the Councilmembers inquires, reported on HP Tow’s service. Paul Mendez, legal representation for HP Tow, reiterated the company’s concerns. Jerry Brown of Mr. C’s Towing of South Gate, Inc., (Mr. C’s Towing) reported on his company’s experience and on the proposed service plan for Vernon. Brown also reported on his involvement with the community. Kenneth Spiker of Spiker Consulting Group spoke on behalf of HP Tow. He urged the Council to reevaluate the RFP process. Richard Kettering of U.S. Tow, Inc. reported on his company’s experience and level of service. Angel Sotelo of the South Gate Chamber of Commerce spoke on behalf of Mr. C’s Towing and praised their level of service. Sandra Orozco, local activists, recommended that the Council table the matter. Orozco spoke on HP Tow’s behalf. Dell Singh, Operations Manager at HP Tow, reasoned that HP Tow offers the same services as the competing companies. He urged the Council to review the facts before making a decision. Josie Guadalajara, Dispatch Supervisor at HP Tow, urged the Council to consider the impact of their decision on the employees of HP Tow. Calleros confirmed for Councilmember Ybarra the RFP requirement after three years of service. In response to Mayor Pro-Tem Davis, Calleros reported on the importance of a service agreement to set standards. Councilmember Woodruff-Perez requested additional time and requested the scoring information for the RFP. It was moved by Davis and seconded by Ybarra to table the matter to the August 18, 2015 Council meeting. Motion carried, 5-0. Regular City Council Meeting Minutes August 4, 2015 Page 9 of 10 DISCUSSION ITEM AND POSSIBLE DIRECTIVES TO STAFF 26. Discussion of Proposed Elimination of Priority for First Responders in Leasing City- Owned Housing. Recommendation: A. Hold a discussion regarding the joint recommendation made by the Housing Commission and City staff to eliminate the priority for first responders in leasing City-owned housing. B. If the City Council concurs with the aforementioned recommendation, direct staff to prepare an ordinance to amend Section 2.125(b) of the Vernon Municipal Code to remove the first responder leasing priority, effective at 5:01 p.m. on December 8, 2015. Deputy City Administrator Kristen Enomoto requested that the item be tabled to the next Council meeting in order to fully address the components from the Council’s previous discussion. It was moved by Ybarra and seconded by Davis to table the item to the next Council meeting, August 18, 2015. Motion carried, 5-0. ORAL REPORTS 27. City Administrator Reports – brief reports on activities and other brief announcements by the City Administrator and Department Heads. Police Chief Daniel Calleros reported on the following: auto burglary arrest on July 24, child endangerment arrest on July 27, ongoing investigation on a physical altercation that occurred on June 5, and ongoing investigation of possible substance abuse that resulted in an injury traffic collision. Police Captain Michael Gillman announced that there has been no reports of vandalism since the last Council meeting. Mayor McCormick reported on vandalism throughout the City. Fire Chief Michael Wilson reported on the following: Mutual aid provided on August 1 to Shasta County, training for multi victim incidents, responses to a fall victim on July 22, a man down on July 25, assistance to the City of Long Beach as a result of the power outage on July 30, a commercial fire on July 30, and a vehicle accident involving a power pole on August 1. Wilson also announced the passing of former retired Fire Chief Steve Parker on August 2. Director of Public Works, Water and Development Services Kevin Wilson provided an update on the generator replacement at City Hall, and advised that staff will be reviewing the traffic flow and traffic signal timing on Santa Fe Avenue. Electrical Resources Planning & Development Manager Abraham Alemu provided an update on SB350 and its impact. Alemu announced that a distribution generation impact study would be presented at the next Vernon Business and Industry Commission meeting. Director of Health and Environmental Control Leonard Grossberg announced that the draft Exide Technologies closure plan is available for public review. In response to Councilmember Ybarra, Grossberg advised that contact information for Vernon resident testing can be provided upon request. Director of Human Resources Teresa McAllister reported that the online application system is scheduled to go live within the upcoming weeks. Four additional personnel policies are currently before the unions as part of the meet and confer process. Economic Development Manager Alex Kung reported on the Recognized Obligation Payment Schedule and upcoming Oversight Board meeting on September 3, 2015. Kung also announce the Vernon Business and Industry Commission meeting on August 13, 2015 at 9:00 a.m. Regular City Council Meeting Minutes August 4, 2015 Page 10 of 10 Director of Public Works, Water and Development Services Kevin Wilson reported that he will be providing comment to the Southern Coast Air Quality Management District (SCAQMD) proposed Rule 415 as it related to zoning and building code requirements. Senior Advisor to the City Administrator Fred MacFarlane reported on the success of the grand opening of the Vernon Village Park Apartments. MacFarlane additionally reported on upcoming plans for Vernon CommUNITY Fund Grant check presentations. Deputy City Administrator Kristen Enomoto provided an update to the request for proposals (RPF) process for real estate agent for the sale of the Huntington Park units and on the units themselves. City Administrator Mark Whitworth reported on the following: meeting with the Chamber of Commerce, Independent Reform Monitor John Van de Kamp’s report, and the upcoming AB1234 Ethics training to be conducted by Reed and Davidson on August 11. 28. City Council Reports – brief report on activities, announcements, or directives to staff. Mayor McCormick announced the attendance of Boy Scout Troop as part of their community merit badge. CLOSED SESSION At 12:06 p.m. the City Council entered into closed session to discuss the following agendized item: 29. CONFERENCE WITH REAL ESTATE NEGOTIATIONS Government Code Section 54956.8 Property: 3200 Fruitland Ave Vernon CA Agency Negotiator: Mark Whitworth, City Administrator/Alex Kung, Economic Development Manager Negotiating Party: 3200 Fruitland GAP, LLC, Xebec Under Negotiation: Price and Terms of Assignment and Assumption of Purchase and Sale Agreement At 12:10 p.m. the City Council exited closed session. Deputy City Attorney Brian Byun announced that there was no reportable action. With no further business, at 12:10, Mayor McCormick adjourned the meeting. ________________________ W. Michael McCormick Mayor ATTEST: _________________________ Maria E. Ayala City Clerk MINUTES OF JOINT SPECIAL MEETING OF CITY COUNCIL OF THE CITY OF VERNON AND THE VERNON BUSINESS AND INDUSTRY COMMISSION MEETING HELD TUESDAY, AUGUST 11, 2015, IN THE COUNCIL CHAMBER OF THE CITY HALL LOCATED AT 4305 SANTA FE AVENUE, VERNON, CALIFORNIA MEMBERS PRESENT: McCormick, Martinez, Ybarra, and Woodruff-Perez MEMBERS ABSENT: Davis The above listed meetings were called to order at 9:00 a.m. by Mayor/Chairperson McCormick who also let the flag salute. City Clerk Maria Ayala announced the adjournment of the following meetings due to lack of quorum, which were also noticed on the same agenda: - Vernon Housing Commission - Green Vernon Commission - Vernon CommUNITY Fund Grant Committee - Oversight Board of the Successor Agency to the Redevelopment Agency At this time the Vernon Business and Industry Commission meeting was erroneously announced as adjourned. However, Ayala announced the correction at the conclusion of this meeting. CHANGES TO THE AGENDA Mayor/Chairperson McCormick announced that there are no changes to the agenda. PUBLIC COMMENT Mayor/Chairperson McCormick announced that this was the time allotted for public comment, and inquired whether anyone in the audience wished to make a comment. There was no response. TRAINING 1. AB1234 Ethics, Ralph M. Brown Act, and California Public Records Act Training Presented by Reed & Davidson, LLP. Dana Reed, Jerry Simmons, Ryan Hughes and Elise Weinberg of Reed & Davidson, LLP conducted the training and provided response to participants’ inquiries. With no further business, at 10:57 a.m., the meeting was adjourned. ________________________ W. Michael McCormick Mayor/ Chairperson ATTEST: _________________________ Maria E. 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Wilson, Fire Chief 4305 Santa Fe Avenue, Vemon, Calilomia 90058 Telephone (323) 5818811 Fax (323) 82G7a07 RECEIVED AUG 1 1 201s CIIY CLERK'S OFFICE August 7,2015 Honorable Mayor and City Council City of Vemon Honorable Members: Attached is a copy of the Vemon Fire Department Activity Report which covers the period of July 16, 2015 through July 31,2015. Respectfu lly Submitted. MAW:ar RECEIVED AUG I 0 20t5 CIry ADMINISTRATION : Fireletnow E4tusivefy Inhutriaf VERNON FIRE DEPARTMENT COMPANY ACTIVITIES July 16,2015 to July 31, 2015 ACTIVITYT\?E FIRE PREVENTION: Regular lnspections (#) : Re-Inspections (#): Spec. Haz. Inspections (#): Total Inspections: Total Man Hours: TRAINING (HOURS): Firefighting Hazardous Materials Safety Apparatus Operations Equipment Operations CPR First Aid Total Hours: PRE-INCIDENT (HOURS): Planning District Familiarization Total Hours: PERTOpTC TEST (HOURS): Hose Testing Pump Testing This Period Last Year Last Year To Date 954 1 158 l 182 411 1595 l6l l 1599 56 405 6861 1038 11.t7 2155 t21 22 0 793 131 30 43 24 2 69 72 This Period 141 200 92 104 196 This Year To Date 1008 207 20 t235 t728 1427 452 1924 1778 1856 26 311 7774 92 35 T JJ 126 t34 2 29 551 91 28 124 127 121 4 48 543 96 98 194 1297 1129 2426 0 0 0 0 8 J 26 10 Total Hours: Page I 11 PUBLIC SERVICE PROGRAMS (HOURS) School Programs Fire Brigades Emergency Preparedness Total Hours: ROUTINE MAINTENANCE (HOURS): Station Apparatus Equipment Total Hours: Grand Total Hours: :Fireactiviw 2 5 8 15 125 t29 130 384 t2 6 t47 165 0 4 6 10 127 t40 135 402 r5'79 1649 1647 4875 33 l8 170 221 1735 1777 1850 5362 1346 17547t22t15225 Page 2 o t\o o r a{ F F F aJ N F .rl rO t nt rn ln ri F atl F L} t rf _ to oN (a Ia u) oN .o t-, ol\ol lft oN IAPcot, UE IE oF {Jt-o CLoE, Pt-ot, Uc rFo o CL t- FzI{ EFtr ( !.I{o I{tr -It zoz trI{ + -ur e . t|p *i ggE* re gEEiE: iE ss EE,n tlJ lrl lrl lrl l! !J lrt lrl lrJ ltl l! lrl lrJ t! lr- lr- L lr- lr. l! (^ lrl l,a- E z lrJttuz, lncident Type 321 EMS call, excluding vehicle accident with inju 321 EMS call, excluding vehicle accident with inju 321 EMS call, excluding vehicle accident with inju 321 EMS call, excluding vehicle accident with inju 611 Dispatched & canceled en route 322 Motor vehicle accident with inluries 622 No incident found on arrival at dispatch addr 740 Unintentional transmission of alarm, other 321 EMS call, excluding vehicle accident with inju 741 Sprinkler activation, no fire - unintentional 571 Cover assignment, standby, moveup 611 Dispatched & canceled en route 611 Dispatched & canceled en route 321 EMS call, excluding vehicle accident with inju 321 EMS call, excluding vehicle accident with inlu 321 EMS call, excluding vehicle accident with inju 324 Motor vehicle accident with no iniuries 132 Road freight or transport vehicle fire 700 False alarm or false call, other 324 Motor vehicle accident with no injuries 700 False alarm or false call, other 311 Medical assist, assist EMS crew 745 Alatm system activation,no fire, unintentional 571 Cover assignment, standby, moveup 151 Outside rubbish, trash or waste fire 611 Dispatched & canceled en route 745 Alatm system activation,no fire, unintentional 311 Medical assist, assist EMS crew 321 EMS call, excluding vehicle accident with inju 600 Good intent call, other 700 False alarm or false call, other 324 Motor vehicle accident with no injuries 321 EMS call, excluding vehicle accident with inju 321 EMS call, excluding vehicle accident with inju 251 Excessive heat, scorch bums with no ignition 321 EMS call, excluding vehicle accident with inju 700 False alarm or false call, other 311 Medical assist, assist EMS crew 311 Medical assist, assist EMS crew 321 EMS call, excluding vehicle accident with inju 321 EMS call, excluding vehicle accident wath inju 321 EMS call, excluding vehicle accident with inju 745 Alatm system activation,no fire, unintentional 700 Fatse alarm or false call, other lncident Date 0711612015 05:00:49 07 t16t2015 10.14..27 07/16/201511:30:33 0711612015't3:04.48 0711612015 't3:25:19 0711612015 22:08.41 0711612015 22:20:06 0711712015 07:03:50 0711712015 09:33:33 0711712015 10:58:41 0711712015 15:02:06 0711712015 15.10.41 0711712015 15:20:13 0711712015 15:43:51 0711712015 16:50:45 0711812015 03:09:55 0711812015 06:57:18 0711912015 09:16:35 0711912015 17:14:37 0712012015 03:26:14 0712012015 10:38:40 0712012015 13:36:17 0712012015 18:28:15 0712012015 19:01 .36 0712112015 05:0'1:56 07t21t2015 07 .41 .40 0712112015 08:24.40 0712112015 08:52:22 071211201513:09:15 0712112015 15:02:36 0712112015 15:12:46 0712112015 17:36:58 0712212015 08:19:34 0712212015 15:52:10 07 t2212015 20:04:20 0712312015 15:18:42 0712312015 23.34:31 07 t24t201 5 10 .07 .37 0712412015 13.49:38 0712512015 09.45:52 0712512015 20.02:19 0712612015 02:02:31 0712712015 07:39:21 0712712015 09:07:31 PREVENTIONFOLLOW.UP? Shift No No No No NO No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No No 741 Sprinkler activation, no fire - unintentional 321 EMS call, excluding vehicle accident with inju 321 EMS call, excluding vehicle accident with inju 622 No incident found on anival at dispatch addr 321 EMS call, excluding vehicle accident with inju 321 EMS call, excluding vehicle accident with iniu 321 EMS call, excluding vehicle accident with inju 321 EMS call, excluding vehicle accident with inju 700 False alarm or false call, other 700 False alarm or false call, other 571 Cover assignment, standby, moveup 111 Building flre 571 Cover assignment, standby, moveup 571 Cover assignment, standby, moveup 611 Dispatched & canceled en route 900 Special type of incident, other 07t2712015 10.10:36 0712712015 13:22:41 0712712015 17:45:49 0712712015 18:17:39 0712812015 09:41:05 0712912015 08:14:43 0712912015 16:23:45 0713012015 03:42:13 0713012015 13:45:12 0713012015 17:20:17 07130t2015 18:39:34 07t30t2015 23.32:40 07 l3ol201 5 23:45 .22 07 l3ot201 5 23:47 .54 0713112015 04:06:53 0713112015 16:28:39 No No No No No No No No No No NO No No NO No No o o o arlf\l il t oN vll,cot, uc ottoF Pt-o CLod. 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EsE E:fu s sE $EE*EEEFgEEEEEESEEEg 6 L lrJ -lr,l a6 -IJ o- l T o o lrJo- Et-2 lrJa (Jz \Olollsl<IIE Ns oN vl coE' Us .EttoF +, o CLou PcoE' TJ E rho (u CL F FzI{ EFtr 0.t{o I{tr -Ir zoz trI{ .l).II.' t oN 6I r.r;sal zlr,et, = lrJa- t- F lrlo U 6ffifiF1:r€fl $..1ii:$5i ,,,r Memo Mark Whitworth City Adminisr-ator tconard Grossberg, Dircctor/Hea.lth Offi cer A4ust 5, 2015 Transmiual of Health & Environmental Control Departrnent Monthly Report I am forwarding the attached subject report for July 2015 for submission to the City Council. I am requesting that the report be placed on the normal City Council agenda. Please let me know ifyou need additional information. Attachment Health andContro!EnwironrnentalDepartrnent RECEIVED AUG 0 5 20t5 CITY ADM IN ISIRATION To: From: Date: Re: +A gclgTmydoc,ZHD,tnoflrhly reporrs,Ciry A&nin Transnitral Monsrty Reporr July 2Ol5 HEALTH eT ENVIRONMENTAL CONTROL DEPARTMENT luly, 2Ol5 MONTHLY REPORT City of Vernon Leonard Grossberg, Director/Health Officer . L!l..- LI..)/A(rar jrrl\ ,r=PJ . HEALTH & ENVIRONMENTAL CONTROL DEPARTMENT MONTHLY REPORT Julv 201 5 HAZARDOUS MATERIALS CONTROL The hazardous materials activities in July primarily involved the processing of invoices and documents to re-issue health permits for businesses that handle hazardous materials here in the City. Hazardous Material Invoices include fees to cover the costs of conducting inspections, re- visits, and reviews of permitted facilities. Businesses were required to use the web-based portal "Califomia Environmental Reporting Syston" (CERS) to submit chernical information electronically directly to us, as well as allow the local agencies to provide chernical information data to State agencies as needed. aaraa Chief Deputy Director David LeDuff continues to monitor and report on the status of the CERS project, including submitting status reports to CaIEPA on how we are progressing in implernenting the program. Health Department staff have been preparing for the upcoming CUPA audit in Septernber by concentrating on conducting reviews ofbusiness CERS submittals and providing response notices to their entries. Staffcontinues to monitor closure activities at 2939 Bandini Blvd., Service Oil on Atlantic Blvd., Pechiney on Fruitland Ave., Exide Technologres on Indiana Street, and 1890 E. 25th Street. These activities are very time consuming and can last for months if not years before receiving a final closure letter fiom us. aaaa Director Leonard Grossberg attended the Exide Community Advisory Group meeting on July 23d in East Los Angeles, which met to discuss the draft closure plan for the Exide Technologies facility. Once the draft plan is reviewed and comments are addressed, a final plan will be circulated and a formal public comment period will be opened. Upon completion of the public comment period and addressing all of the comments, an approved work plan will be approved to begin the decontamination and demolition of the site. The proposed plan is estimated to take approximately 5 years to complete. Training continues to be a primary concem for our staff, as well as a requirernent for multiple certifications and registrations held by staff. Several staff members attended an annual S-hour Hazardous Waste Operations (HazWOPR) Health & Safety training for hazardous waste inspectors. UNDERGROUND TANK PROGRAM No underground tanks were rernoved in July. However, staff conducted monitoring and certification inspections at several facilities, including: Dunn Edwards Company, Consolidated Metal Co., Randall Foods, Fed-Ex, King Meat, and Catalina Pacific. Staff also assisted the Public Works Dept. in testing the City's underground storage tanks at City Hall, and three Fire Stations. FOOD PROGRAM Annual wholesale food vehicle inspections were initiated during the month of July. A part of the wholesale food vehicle progam includes the inspection of vehicles to assure compliance with sanitation and mechanical refrigeration requirements. Vemon hea'lth inspectors scheduled an annual inspection of wholesale food vehicles for a one week period starting on July 27th and ending on July 30th,2015. The inspection program was held at Fire Station #1 on Fruitland, and over 1,300 permitted vehicles were inspected! Senior Environmental Health Specialist Lyndon Ong Yiu continues to conduct plan check reviews for food facilities; food processor establishments; and restaurants. New construction, re- modeling, and modification offood facilities requires a rigorous review ofnew building codes as well as Health & Safety code requirements. Senior Environmental Health Specialist Lyndon Ong Yiu also conducts and monitors backflow device testing on a regular basis to assure that the potable water system is protected from any possible contamination. Annual permits for each device are maintained by the Health Dept. ENVIRONMENTAL PROTECTION In July, fourteen water samples were collected fiom various locations served by the three water purveyors in the City. All of the samples tested negative for e-coli and total coliforms. Analyses of these samples indicated they all met State standards for potability. Senior Environmental Specialist Jerrick Torres continues to assist in monitoring the ongoing status of Exide Technologies and interaction with the South Coast Air Quality Managanent District (AQMD) and Regional Water Quality Control Board (RWQCB) with regards to the monitoring of lead and arsenic emissions in storm water discharges to the streets and storm drains. Also of note in July was a sigrrificant number of occupancy inspections scheduled' Thirty-one (31) initial occupancy inspections were conducted during the month ! Also of note for July was an increase of complaints in animal control calls. A summer outbreak ofoff-springs resulted in numerous calls for feral cats; and multiple loose dogs. Chief Deputy Director David LeDuff conducted a mosquito survey in the Los Angeles River bed, and was able to clear standing water which allows mosquitoes to breed. Senior Environmental Specialist Jerrick Torres conducted a Business Outreach Stormwater Information Presentation at the Vemon Chamber of Commerce to help educate Vemon businesses in dealing with stormwater compliance issues, and also participated in a multi-agency "Environmental Justice Group" project which looks at effects businesses have on neighboring communities. aaaa Senior Environmental Specialist Jerrick Torres reviewed and approved a new Ammonia Refrigeration System at the new Whole Foods Facility on Pacific Blvd. which is scheduled to open soon. Our staff is trained to properly oversee new and existing facilities that use chemicals that meet a certain thresh-hold, known as the "California Accidental Release Program" (Cal- ARP) and we conduct inspections and 5-year reviews above and beyond the normal routine requirements for these sites to insure compliance and safety. gcl-c:MyDocs/ZHealth DeptMonthly Reporls /20lsiMonthly July 201 5.doc 4 SrEPA United States Environmental Protection Agency epa.gov/healthyheart ) Steps You Can Take to Reduce Health Effects from Air Pollution Studies show that air pollution can trigger heart Are you at risk? attacks, strokes and worsen heart failure in people Greaier risk if you have or have had: who are at risk for these conditions. lf you have a . Coronary artery disease heart condition, you could benefit by reducing your . Angina [chest [ain)exposure to high levels of air pollution. . A h-eart attack Air Pollution Levels can be high ' Bypass surgery or an angioplasty . Any time of year u o Heart failure . When weather is calm o An internal cardiac defibrillator . Near busy roads o A stroke or transient ischemic attack! rrecr 9u5y r(]irq5 . ln urban areas .ln industrial areas . When there is smoke Check the AQI Daily ' Good Check current pollution forecasts and reports that use the Air Ouality tndex inot) - Mod"t . On local TV, rad rs o On the lnternet t. Through the Airrrow app ror B Sensrrle '.,' -- E iPhone and Android phones I ..,i+h heart disease snou'" I I o Through fleere-Tail alerts I I The AQI is a sim tells I I#i,i.T:5:il ::o I Have Heart Disease? ..,1+h heart disease sn(-,u'" Hazardous indoor I r?EPA United States Environmental Protection Agency epa.gov/healthyheart Steps to Protect Your Heart When pollution is high, you can reduce the amount of particle pollution you inhale . Delay your outdoor activity until the air is cleaner . Reduce your activity level (for example, go for a walk instead of a jog) o Move your exercise inside o Avoid exercising near busy roads To learn more, visit: www.airnow.gov Reduce Your Risk Reduce your overall risk of heart disease and stroke . Eat healthy foods . Control blood pressure . Control cholesterol levels . Exercise more (first check with your health care provider) . Stop smoking . Take aspirin and heart medication as directed . Talk to your health care provider about treatment *-i"''n sig" of a Heart Aftack :1,, "" [[#i,,,*1"i,;::" - j:'ilf':llil::i:i::;h,'i^:d;; ';'ffi,:,'ff.1,,r.:;#rti::$::,tinco/d For more information, visit www.heart.org www. m i I I ion hea rts. hhs. gov epa.gov/research/airscience/air-cardiovascular.htm warnins ilisns 'i:.::',"*ace, arm or .';jH :U,ffi'"1.:ru ]",| J. "0,=ll" " o, ", . Cln{usion' trouble sPea . problems seein coordination, . airrin"", loss.o{ balance o -o, troubl" walkrng .., -^ known cause o Severe headache with no I Learn more about preventing heart attacks and stroke at: www. cd c. gov/heartdisease www.cdc.govlstroke RE EI\f ED AuG 0 3 2oi5 C\IY CLIRKSOIIICE RECEIVED AU6 0 3 ?Bl5 POLICE DEPARTMENT Daniel Calleros, Chief of Police 4305 Santa Fe Avenue, Vernon, California 90058 Telephone (323) 587-5171 Fax (323) 826-7481 August 3,2015 Ilonorable City Council City of Yernon Vernon, California Honorable Members: Attached are copies of the Vemon Police Department Activity Log and Statistical Summary of Arrest and Activities which cover the period from 12:01 a.m., July 16, 2015 up to and including midnight of July 31,2015. Respectfu lly submitted, YERNON POLICE DEPARTMENT 0-";l CaZ- DANIEL CALLEROS CHMF OF POLICE DC/ar IIO N Eatusive$ htlu*iat CITY ADI,4IN VERNON POLICE DEPARTMENT D epartment Activity Report Jarisdiction: vERNoN Fint Date: o7l16t2o1s Last Dale: o7l31l2o1s Depaflmenl Complaint Type Description All Units Primary Unit VPD 10€ I G96M 't40 20002 20002R 211S 240R 242 242R 273.5R 415 4594 459R 459V 459VR 476R 4U ,184R 487R 586 594 594R 602 901 9017 9027 909C 909E 9097 9't l 9't1A 91,INR 9174 92OPR 925 927 A45gVR A484R AB1O9 AGGRANI ASTVFO BOMB BOSIG BOVEH CITCK CIVIL CODE5 coP oFFrcER rs 106 c7,961 .962,10-'t0. WASH. EQUrp[ 10.96 MARY (MAIL DETAIL) SUPPLEMENTAL REPORT NON-INJURY HIT AND RUN NON]NJURY HIT AND RUN REPORT SILENT ROABERY ALARM ASSAULT REPORT BATTERY BATTERY REPORT DOMESTIC VIOLENCE REPORT DISTURBING THE PEACE AUDIBLE BURGLARY ALARM BURGLARY REPORT BURGLARY TO A VEHICLE BURGLARY TO A VEHICLE REPORT FMUD REPORT PETTY THEFT PETTY THEFT REPORT GMND THEFT REPORT PARKING PROBLEM VANDALISM VANDALISM REPORT TRESPASS UNKNOWN INJURY TMFFIC COLLISION INJURY TRAFFIC COLLISION NON.INJURY TRAFFIC COLLISION TRAFFIC CONTROL TRAFFIC ENFORCEMENT TMFFIC HAZARD 911 MISUSE / HANGUP CONTACT THE REPORTING PARTY 911 CALL NO RESPONSE REQUIRED ABANOONED VEHICLE LOST PROPERTY REPORT SUSPICIOUS CIRCUMSTANCES UNKNOWN TROUBLE ATTEMPT BURGLARY TO A VEHICLE REPORT ATTEMPT PETTY THEFT REPORT PROBATION / PAROLE COMPLIANCE CHECKS AGGRESSIVE ANIMAL ASSIST VERNON FIRE DEPARTMENT BOMB THREAT BROKEN SIGNAL OR LIGHT BROKEN DOWN VEHICLE CITATION CHECK CIVIL MATTER SURVEILLANCE/STAKE.OUT COP OETAIL 120 1 5 7 8 b b 4 4 33 115 1 5 o 1 5 4 8 18 b 10 6 4 4 40 1 3 4 10 19 2 2 2 32 1 1 8 2 31 1 5 17 8 J 1 107 5 I 3 5 2 I 2 2 I l0 62 I I 6 I 2 4 5 l5 2 3 I 2 25 I 2 3 6 t2 I 2 I ll 2 I I 5 2 20 I 4 9 6 3 2 I 08/Un015 00:07:40 Page of VERNON POLICE DEPARTMENT D ep artment Activity Rep ort Jarisdiction: VERNON Finl Date: o7716t2o1s Last Date: ott31t2o1s Depa ment Complainl Type Desciption All Units Primary anit \?D DET DETECTIVE INVESTIGATION DETAIL DETAIL DPTAST DEPARTMENTAL ASSIST DUI DRIVING UNOER THE INFLUENCE FILING OFFICER IS lOS REPORT WRITING FOUND FOUND PROPERTY REPORT FU FOLLOW UP GTA GRAND THEFT AUTO GTAR GMND THEFT AUTO REPORT HBC HAILED 8YA CITIZEN JAILPANIC TEST THE JAIL PANIC ALARM BUTTON K9 TRAINING K9 TRAINING REMINDER. OBTAIN LOCATION KTP KEEP THE PEACE 3 1 9 1 41 ,| 31 3 1 4 1 3 2 1 J 2 1 7 24 99 53 7 4 19 1 3 3 1 6 1 3 220 79 16 1 5 b 10 7 2 I 4 I 38 I l8 t I 3 I 3 I I 3 I I 2 l5 82 33 6 I 5 I 3 2 I 2 I I t7l 59 12 I 2 4 3 4 LOCATE LOCATED VERNON STOLEN VEHICLE LOJACK LOJACK HIT MR6O MISC REPORT i,UTUALAID MUTUAL AID PANIC ALARM PANIC ALARM/DURESS ATARM PAPD PUBLIC ASSIST-POLICE PATCK PATROL CHECK PEDCK PEDESTRIAN CHECK PRSTMN PRISONERTMNSPORTED PURSUIT PURSUIT REC RECOVERED STOLEN VEHICLE RECKLESS DF RECKLESS ORIVING (23103) REPO REPOSSESSION ROADMGE ROAO RAGE SEAACA SEAACA ANIMAL CALLS SPEED SPEED CONTEST OR SPEEDING (23109) SUBPOEM SUBPOENASERVICE SUICIDE SUICIDE ATTEMPT TRAFFIC STOI TMFFIC STOP VCK VEHICLE CHECK VEH RELEASE VEHICLE RELEASE VIDEOCHECK VIDEO EQUIPMENT CHECK (10.96 V) VMCVIO VERNON MUNICIPAL CODE VIOLATION WARMNT WARMNT ARREST WELCK WELFARE CHECK WRNTSVC WARMNT SERVICE Deparlmenl:1279 864 865 08/01n015 00:07:/A Overall:r279 Page of VERNON POLICE DEPARTMENT Police Activity Report Period Ending: 07l3lll5 TRAFFIC COLLISIONS TOTAL NON.INJURY INJURY Pedestrian Fatalities City Property Damage Hit & Run (Misdoneanor) Hit & Run (Felony) Persons Injured VEHICLES STORED Unlicensed Driver Abandoned/Stored Vehicle Traffrc Hazard CITATIONS Citations Iss (Prisoner Release) Citations Iss (Moving) Citations Iss (Parking) Citations Iss (Total) Hazardous Non-Hazardous Other Violations CASES CLEARED BY ARREST ARl5-181 CRls-1202 11377(4) HS PROPERTY RECOVERED VEHICLES: 52,800.00 PROPERTY RECOVERED FOR OTHERDEPARTMENTS VEHICLES: S16,000 2 5 25 8 I NO. 20 15 5 7 112 l5 127 63 49 ARl5-182 CRl5-0912 ARl5-185 CRl5-0755 350.5 PC 242PC ARls-186 CRl5-1238 108s1 VC AR15-189 CRl5-1246 .+59 PC ARls-190 CR15-1260 273(A) (B) PC ARl5-192 CR15-0755 242PC AR15-193 CP.15-1273 10851 VC VERNON POUCE DEPARTMENT REPORT FOR PERSONS ARRESTED PERIOD ENDING O7l31/15 AND MALE FEMALE TOTAL ASSAULT WITI-i A DEADLY WEAPON BURGLARY 1 1 CHILD ENDANGERMENT 1 1 EMBEZZLEMENT FORGED OFFICIAL SEAL IDENMT THEFT 1 1 POSS. CTRLD SUBSIANCE POSS. STOLEN PROPERTY RESIfiNG ARREST ROBBERY VEHICLE THEFT 1 I 2 WARMNT (BENCH)1 I TOTAL FELONY ARRESTS 5 1 6 MALE FEMALE TOTAL BATTERY 2 2 CRIMINAL THREATS DRIVING UNDER THE INFLUENCT 1 L DRUNK IN PUBUC PETTY THEFT POSS. CONTROLLED SUBSTANCE 1 1 POSS. NARC. PAMPHERNALIA TRESPASSING VANDAUSM WARMNTS (BENCHTIRFC)2 1 3 WARMNTS (FOREIGN) TOTAL MISD. ARRESTS 4 3 7 DETAINED --- MALE FEMALE TOTAL BURGLARY PETry THEFT POSS. 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LS $ n< $ { a\ F\zt{\trFrq \ t{a E {oq zokr< s o o) e { ; t-Y) t- o; o t- q? oi .3o l(' t;9 E3 ci €o9 I(Y) cd dd &-* s(o cd :: 9&oP il(9 85 Si!:c{tE E5 IP :NtE o6 !N :c{:6 s EN: c.rrE o6 @o(o tdotd;tl;tEoEoE-EEa Eo Eo EoE9 39 dS Ae$@ F(, Or(Dlr)F oni+ ,b,b dd +c,l q? Y29 !'! q.| I@@ .o o, Noo oo <. + ciz_oOzzZ== s= ff:E s!! JN > NJ Z Nz' = >iob,( c( t! tL7 { > u;trs fri i I(h= l-F lL Efr? "* 0R a s t : *2El= iEfrl i=1 f =r$<r 5H3< ZarE ilrrE ar'.) t:5H 56 H5 EE(J >-E ()>- () IJJ O tJJ L! O IIJ Ooo Go otr ol' F-E pp il pp I ea $ ed >> dd >> i.j >> N >oo I Sce5 t-l!_tr F :E F o-d tr :E Fd a-E6 t- =d Ft!t t- al d. s{ 9\ 't. I: qr=!,t se(g .s -d .3a\ .Q R L) F. l'- AQ .\\ zozd.ul o E\.k a.\ s\)os.F IS() { \ B ra) S) ;\Fr \ \)St\' LS $ n< s { G F\z FLI\sFTq Nt{aI \)o \ e ktr s .a t .< \ q Irl 'ss a RECetn;qry AUG I3 2oi5 CIIY CLERK'S UFIICE STAFF REPORT CITY ADMINISTRATION DATE: TO: FROM: RE: August 18,2015 Honorable Mayor and City Council Mark C. Whitworth, City Administrator Originator: Kristen Enomoto, Deputy City A Resolution of the City Council of the City of Vernon Amending Resolution Nos. 2012-173 and 2014-53 Regarding the Reimbursement of Certain Costs Incurred by Current Vernon City Personnel in Connection with a Review by the California Public Employees' Retirement System ("CalPERS") Recommendation A. Find that the approval of the resolution proposed in this staff report is exempt under the Califomia Environmental Quality Act (CEQA) in accordance with Section 15061(bX3), the general rule that CEQA only applies to projects that may have an effect on the environment. B. Adopt the attached resolution to authorize up to an additional $75,000 in reimbursable legal expenses for Michael McCormick relating to his ongoing appeal of CaIPERS' determination arising out ofthe Report findings (CaIPERS Case No. 2013-0899). Background In April 2012, CaIPERS issued an audit report on the City of Vemon that contained certain findings. Based on the findings in the report, CaIPERS issued determination letters to certain cunent employees regarding their pension benefits. Some of these employees, including Mayor Michael McCormick, retained independent legal counsel to assist in responding to and/or appealing their CaIPERS' determinations, and requested reimbursement from the City for said costs. In September 2012, Cily Council adopted Resolution No. 2012-173, which authorized up to $25,000 per current employee of reimbursable legal expenses incurred in connection with responses to and/or appeals of the CaIPERS' determinations arising out of the April 2012 audit report findings. Page I of2 In July 2012, Mr. McCormick received a formal compensation determination letter from CaIPERS. On August 28,2012, Mr. McCormick timely filed an appeal of said determination. After some delay, an Administrative Hearing was ultimately set for and held on May 22,2014. Closing briefs in the Administrative Hearing were filed on June 6, 2014. On June 13, 2014, the Administrative Law Judge C'ALJ") who conducted the hearing submitted his Proposed Decision to the CaIPERS Board of Administration ("Board"), recommending the Board deny Mr. McCormick's appeal. On August 20, 2014, the Board upheld the ALJ's decision to deny the appeal. On September 2, 2014, the City Council adopted Resolution No. 2014-53 authorizing up to an additional $30,000 of reimbursable legal expenses relating to Mr. McCormick's ongoing appeal ofCaIPERS' determination, for a grand total not to exceed $55,000. On October 14, 2015, Mr. McCormick appealed the Board's decision to the Superior Court through a writ of administrative mandamus. On August 5,2015,lhe Superior Court Judge issued her ruling denying Mr. McCormick's writ petition. Mr. McCormick, under the advice of his attomey, now wishes to challenge the Superior Court's denial of his writ petition on the grounds that the Court's ruling was factually and legally erroneous. The appeal process will include pre-appellate filings such as a motion for reconsideration to the Superior Court, designation of the appellate record, drafting the opening appellate brief and reply, and preparing and arguing the appeal before the appellate panel. Mr. McCormick's attomey has submitted a proposed budget of $75,000 to for this process, which is attached hereto. As of August 10,2015, Mr. McCormick has incurred legal expenses totaling $55,052.67, and has received reimbursement for $47,298.69. If paid in full, the most recent request for reimbursement submitted on August 10, 2015, in the amount of $7,753.98, would cause the total reimbursement to exceed the current authorization limit by $52.67. However, the additional reimbursement authorization proposed in this staff report and the attached Resolution is expected to cover this amount. If the City Council does not approve the proposed additional reimbursement authorization, staff will submit a request for ratification of the $52.67 overage at a subsequent meeting. Fiscal Impact The $75,000 requested in this staff report was not included in the budget for fiscal year 2015- 2016, however, staff believes the cost can be absorbed within the existing budget. The additional $75,000, if authorized, would bring the total legal expense reimbursement authorization limit for this matter to $130,000. Mr. McCormick's current attorney has been providing services to Mr. McCormick on this matter since July 2014 at discounted rate that is 400% lower than his standard rate. Attachment(s) 1. Resolution Page 2 of 2 LAW OFFICE OF MICHAEL A. CONGER Post OIfice Box 9374 16236 San Dieguito Road, Suiie,l-14 R.ancho Santa tre, CA 92067 (t56) 759-02.00 (85t) 759-1906 (fsr) rveb sitc: wrrY.hwconger.coln eEail: corgermik@rol.com Michi€l A. Conger PROPOSED APPEAL BI]DGET McCormickv. CaIPERS Prepared: August 13, 2015 Civil Litiertion Employm.lt Lrw Business Lll? Govemmertrl Lew Legal Fees: 200 hours @ $350 per hour $70,000 Motion to Correct Record, Reconsider 16 hours Preparation ofRecord, required appellate filings 3 hours Appellant's Opening Brief 82 hours Review CaIPERS Respondent's Brief 3 hours Prepare Appellant's Reply Brief 68 hours Prepare for and attend Oral Argument 28 hours 200 hours Costs: Filing fees, copies, postage, delivery, travel, etc. $5.000 Total:$75.000 Note: This is an estimate only based on prior experience in a similar cases. Actual time and costs mayvary and shall be governed by the retention agreement dated July 14,2014. RESOLUTION NO. A RESOLUTTON OF THE CITY COIJNCfL OF THE CITY OF VERNON AMENDING RESOLUTfON NO. 20]-2-173 AND 2014-53 REGARDING THE RETMBURSEMENT OF CERTAIN COSTS INCTTRRED BY CI]RRENT VERNON CITY PERSONNEL IN CONNECTION WITH A REVTEW BY THE CAL]FORNTA PI]BLIC EMPLOYEES' RETIREMENT SYSTEM ('CAIPERS" ) WHEREAS. the California Public Empl-oyees' Retirement System ("CaIPERS") Office of Audit Services conducted a public agency review of the City of Vernon, the results and findings of which were outlined in a report. dated April 27 , 2Ol2 (the "ReporE" ) ; and WHEREAS, CaIPERS notified certain current City of Vernon personnel of preliminary and final determinat.ions rel-ated to their pension benefits based on t,he Report findings; and WHEREAS, certain current City of Vernon personnel relained independent 1ega] counseL to assist in responding to and/or appealing the CaIPERS delerminations, and request.ed reimbursement from the City for such costs; and WHEREAS, on Septernber 4, 20!2, the City Council of the City of Vernon adopEed Resolution No. 2012-173 (the "Resolution,. ) authorizing the reimbursement of certain costs incurred by current Vernon CiEy personnel in connection with responding to and/or appealing the CaIPERS' determinations; and WHEREAS, Section 3 of the Resolution authorizes the expenditure of General Fund monies t.o pay any costs, expenses, interest and attorney's fees, not to exceed twenty-five thousand dolLars ($25,000) per current employee, arising out of the hiring of 1ega1 counsel to respond to and/or appeal the preliminary and final determinations arising out of the Report findings; and WHEREAS, on September 2, 2O)-4, the City Council of the City of Vernon adopted Resolution No. 201-4-53 amending Resolution No. 2012- l-73 authorizing up to an additional- thirty t.housand doflars ($30,000.00) in reimbursable lega1 expenses for W. Michael Mccormick relating to his ongoing appeal of CaIPERS, determination arising out of the Report findings (CaIPERS Case No. 2013-0899); and WHEREAS, by memorandum daLed August 18, 20]-5, Cit.y staff has reguested authorization for up to an additional seventy-five thousand dollars ($75,000.00) in reimbursable 1ega1 expenses for W. Michael Mccormick relating to his ongoing appeal of CaIPERS. determination arising ouE of the Report findings (CafPERS Case No. 2013-0899); and WHEREAS, the City Council of t,he City of Vernon desires to authorize the additional $75,000.00 in reimbursabfe 1ega1 expenses for w. Michael Mccormick. NOW, THEREFORE, CITY OF VERNON AS FOLLOWS: SECTION 1: The BE IT RESOLVED BY THE CITY COUNCIL OF THE City Councif of the City of Vernon hereby the above recitals are true and correct. City Council of the City of Vernon finds that this action is exempt under the California Environmental euality Act (CEQA) , in accordance with Section l-5051(b) (3), Ehe general rule that CEQA only applies to projects that may have an effect on the environment. SECTION 3: The City Council of Che City of Vernon hereby approves and authorizes the additional- g?5,000.00 expenditure of General- Fund monies to pay any costs, expenses, interest. and attorney's fees, not to exceed a total of one hundred thirty thousand dollars ($L30,000.00), in lhe mact.er of CalpERS Case No. 2013-0899. finds and determines that SECT]ON 2: The SECTION 4: The City Clerk, or Deputy City C1erk, of the City of Vernon sha11 certify to the passage, approval and adoptsion of this resolution, and the City C1erk, or Deputy City C1erk, of the City of Vernon shal-l- cause this resolution and the City Clerk's, or Deputy City Clerk's, certification to be enEered in the Fil-e of Resolutions of the Council of this City. APPROVED AND ADOPTED this 18th day of August, 201-5. Name : Title: l4ayor / Mayor Pro-Tem ATTEST: City Clerk / Deputy City clerk APPROVED AS TO FORM: Depuuy Clty Attorney 3 STATE OF CAIIFORNIA ) ) ss COIJNTY OF LOS ANGELES ) I,, City Clerk / Depucy City Clerk of the city of vernon, do hereby certify that the foregoing Resolution, being Resolution No. , was duly passed, approved and adopted by the city Council of the City of Vernon at a regular meeting of Ehe City Council duly held on Tuesday, August 18, 20L5, and thereafter was dul-y signed by the Mayor or Mayor Pro-Tem of the citsy of Vernon. Executed this day of AugusE, 20]-5, aE Vernon, Cafifornia. city Clerk / Deputy cicy Clerk (SEAL) 4 RECEiVED AUG l3 Zo15 CIiY CLERK'S OFFICE STAFF REPORT CITY ADMINISTRATION DATE: TO: FROM: RE: August 18, 2015 Honorable Mayor and City Council Mark C. Whitworth, City Originator: Alex Kung, Economic Approval of the Agreement Regarding Assignment Purchase and Sale Agreement with Fruitland Owner, property located at 3200 Fruitland Avenue and Assumption of LLC (COX) for the Recommendations It is recommended that the City Council: A. Find that approval of the agreement regarding assignment and assumption proposed in this statT report is exempt from the Califomia Environmental Quality Act (CEQA) in accordance with Section 15061(bX3), the general rule that CEQA only applies to projects . that may have an effect on the environment. B. Approve the Agreement Regarding Assignment and Assumption of Purchase and Sale Agreement with Fruitland Owner, LLC for the property located at 3200 Fruitland Avenue, in substantially the same form as submitted herewith. Backsround At the April 7, 2015 meeting the City Council adopted Resolution No. 2015-17 which approved the purchase of approximately 14.53 acres of unimproved property located at 3200 Fruit'land Avenue from Pechiney Cast Plate, lnc. for $24,173,085 for the purpose of redevelopment. The City is currently in escrow with Pechiney which is scheduled to close on June I l, 2015. At the April 2l,2Ol5 meeting the City Council adopted Resolution No. 2015-21 which approved the Assignment and Assumption of Purchase and Sales Agreement for 3200 Fruitland with PI Fruitland, LLC. PI Fruitland, LLC purchased the property with the intent to develop and construct a facility for a plastic recycling manufachrring company. During the due diligence period, PI Fruitland, LLC requested a re-negotiation of certain terms, a price reduction of b+ZS,ooo and $ 1,500,000 holdback. The City declined their request and as a result on June 9th PI Fruitland, LLC terminated the Assignment and Assumption of Purchase and Sale Agreement for 3200 Fruitland. After the termination of the agreement the City was contacted directly by the plastic recycling manufacturing company and COX to discuss the possibility of acquiring 3200 Fruitland under the similar terms and conditions that was agreed upon with PI Fruitland, LLC. The city began discussions with COX and the attached offer was presented. Below is a summary of the terms and agreement: 1) Properw: The City will assign and transfer to COX all of the City's rights, obligation and interest to purchase approximately 14.53 acres (633,083 square feet) ofland. 2) Price: The Purchase Price is $22,556,769 ($21,775,000 original purchase price + S781,769 additional sewer credits at discounted rate at 25Yo) 3) Deposit: $250,000 4) Due Dilisence Period: August 4'h - August 25'h 5) Due Dilisence Extension Deposit: $75,000 Deposit covers due diligence period and two additional extensions for 30 days. 6) Reserved Riehts: The City will still receive approximately $2,026,91 5 ($600,000 + S 1,426,91 5) fiom Pechiney as negotiated in the Pechiney agreement. 7) Financial Assurance: Sewer Credits: To insure COX's tenant (manufacturing company) consumes the amount of power it presented, the City has negotiated a $1,250,000 financial assurance with COX. The amount will be held in escrow and would require the manutacturing company to average minimum, for a trailing l2-month period, of l) 3.3 megawatts ofelectrical power on or before January [, 2019 2) 4.8 megawatts of electrical power on or before January I , 2021 3) 8 megawatts ofelectrical power on or betbre January l, 2023 If each of these hurdles are met by the dates listed above, l/3d (respectively) of the financial assurance would be disbursed back to COX. If each of the hurdles are NOT achieved by the dates, then the City would eam l/3d (respectively) of the financial assurance. Closins Date: t0 days after the expiration of the Due Diligence Period Conditions of Closine: Citv's Conditions a) City Council's approval b) COX's representations and warranties 8) e) c) COX shall have executed and delivered to the Escrow Agent at least one business day prior to the Closing Date the Assignment and Assumption of Purchase d) Agreement, the Power Purchase Agreement, and all documents required to be executed by the buyer under the purchase agreement for purposes of effectuating the Closing. e) COX shall deliver to Escrow Agent on the closing date all funding disbursement. 0 COX shall deliver to City a copy of the executed lease agreement between COX and plastic recycling manufacturing company. COX's Conditions a) As of Closing Date, City's representations and warranties b) Conditions to closing under the Purchase Agreement shall have been satisfied or waived in accordance therewith. c) City shall have executed and delivered to the Escrow Agent on or prior to the closing date, the Assignment and the Power Purchase Agreement. l0)@\gggiNone Fiscal Impact The assignment to COX represents approximately $1.6 million less than the City paid to Pechiney to purchase the property. However, given the anticipated electric usage of the plastic recycling manufacturing company and the significant investment in development costs, the City believes it will recover the $ 1.6 million difference within two years of operation, and leld longer term hnancial benefits through ongoing electric usage and other taxes and fees. Attachment l. Agreement Regarding Assignment and Assumption of Purchase and Sales Agreement between City of Vemon and Fruitland Owner LLC RESOLUTION NO. A RESOLUTTON OF THE CITY COI]NCIL OF THE CTTY OF VERNON APPROVING AND AUTHORIZ ING THE EXECUTION OF AN AGREEMENT REGARDING ASSTGNMENT AND ASSUMPTTON OF PURCHASE AND SALE AGREEMENT BY AND BETWEEN THE CITY OF VERNON AND FRUITI,AND OWNER, LLC FOR PROPERTY LOCATED AT 32OO FRUfTI,AND AVENUE WHEREAS, on March 22, 2OOO, the City Councj_l of t.he City of Vernon ("trhe City,,) adopted Resol_ution No. 8995, as amended on May 3, 2006, April 7, 201,5, and irune 1_1_, 20L5, approving a Standard offer, Agreement and Escrow rnstructions and Addendum (t.he '.Agreement.,, ) with Pechiney Cast. p1ate, fnc. (..pechiney,, ) for t.he purchase of property located at 3200 Fruit.land Avenue (the .'propertsy,,); and WHEREAS, the City wishes to assigns its right, t.it.Ie and interest in, t.o and under t.he Agreement t.o FruitsIand Owner, LLC ("Cox"); and WHEREAS, the Cit.y and COX desire to enter into an agreement regarding assignment and assumption of purchase and sal-e agreement for the Property. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCTL OF THE CITY OF VERNON AS FOLLOWS: SECTION 1: The City Council of the City of vernon hereby finds and determines that the above recitals are true and correcE. SECTfON 2: The City Councif of the City of Vernon finds that this actsion is exempt under the cafifornia Environmental euality Acts (CEQA), in accordance with section r.5061 (b) (3), Ehe general rule that. CEOA only applies Co projectss that may have an effect on the environment. SECTION 3: The City Council of t.he Cit.y of Vernon hereby approves the Agreement regarding Assigrunent and Assumpt.ion of purchase and Sal-e Agreement wich Fruitland Owner, LLC (..the Agreement,'), in su-bst.antially the same form as the copy $rhich is att.ached hereto as Exhibit. A. SECTION 4: The City Council of the City of Vernon hereby auttrorizes t.he Mayor or Mayor pro-Tem t.o execute said Agreement for, and on behalf of, t.he City of Vernon and the Citsy C1erk. or Deputy CiE.y Clerk, is hereby authorized to aE.test thereto. SECTION 5: The City Council_ of the City of Vernon hereby instructs the City Administrator, or his designee, t.o take whatever actions are deemed necessary or desirable for t.he purpose of implement.ing and carrying out. the purposes of thi_s Resol,ution and the t.ransacEions herein approved or aut.horized, incruding but not limited to, any non- subst.antive changes to the Agreement attached herein. SECTION 5: The CiCy Councif of the City of Vernon hereby directss the City C1erk, or the Deputy City Cl_erk, to send. a fu1ly executed Agreement to Fruitland Owner, LLC. 2 SECTION 7:The City Clerk. or Deput.y City Clerk, of the Citry of Vernon shaff cerEi.fy tso the passage, approval and adoption of this resolutsion, and the City Clerk, or Deputsy City C1erk, of the City of Vernon sha11 cause Ehis resolution and the City C1erk, s, or Deputy City Clerk's, certification to be ent.ered in tshe File of Resolutions of t.he Council of this City. APPROVED AND ADOPTED this 18th day of August, 2015 Name: Tit.Ie: Yiayor / Mayor Pro-Tem AI -TED-L : City Clerk / Deputy City Clerk APPROVED AS TO Hema Patel, City 3 STATE OF CAIIFORNIA )) ss COUMTY OF LOS ANGELES ) I,, City C1erk / Deputy City Clerk of the City of Vernon, do hereby cerEify that tshe foregoing Resolut.ion, being Resolution No. , was duly passed, approved and adopted by the City Council of the City of Vernon at a regular meetsing of the City Council duly held on Tuesday, Augrus t. 18, 2015, and Ehereaf t.er was duly signed by Che Mayor or Mayor Pro-Tem of the City of Vernon. Execut.ed this day of August, 2015, aE Vernon, Cafifornia. City Clerk / Deputy City Clerk (SEAL) 4 EXHIBIT A EXECUTlON COPY 08.O4.I 5 AGREEMENT REGARDING ASSIGNMENT A,ND ASSUMPTION OT PURCHASE fu\D SALE AGREEMENT This AGREEMETYT R-EGARDING ASSIGNMENT A'ND ASSUMPTION OF PURCEASE AND SALE AGREEMENT (this "Agreement") is entered into as of August 4, 2015 (the "Effective Date"), by and between City of Vernon ("City') and Fnritland Owner LLC, a Delaware timited liability company ("COK). RECITALS A. City, as buyer, and Pechiney Cast Plate, [nc., as seller ("Sellec'), are parties to that certain Standard Offer, Agreement and Escmw lnstructions for the Purchase of Real Estate dated as of March 20, 2006 ("Original Agreement''), with attached Addendum dated March 20, 2006 (*Addendum'), as amended by that certain First Amendment to the same dated as ol June 15, 2006 ('First Amendment"), as further amended by that certain Second Amendment dated as of April 7, 201 5 (the "second Amendmenf), as lurther amended by that certain Third Amendment dated as ofJune I l, 2015 (he "Third Amendmenf'). The Original Agreement as amended by the Addendum, the First Amendment, the Second Amendment and the Third Amendment shall hereinafter be refened to as the ''Purchase Agreemetrt". A copy of the Purchase Agreement is attached hereto as Exhibit A. B, Seller owns fee simple title to certain real pmperty located in Vemon, Califomia and described more particularly in the Purchase Agre€ment (together with the Buyer UP Land' (as referenced in Section 4.1 ofthe Second Amendment) the "Pmperty")' C. Pursuant to the terms and conditions of the Purchase Agreement, City has agreed to buy, and Seller has agreed to sell to City, the Pmperty. E. Ciry wishes to assigns its right, title and interest in, to and under the Purchase Agreement io COX, except as provided in Sections 7 and ! below. F. AII capitalized terms not otherwise defined hercin shall have the meanings given to such terms in the Purchase Agreement. AGRf,EMENT For good and valuable consideration, the receipt of which is hereby acknowledged, COX and City hereby agree as follows: l. Assimment. City agrees to assign and transfer to COX alt of City's rights, obligations and interest as "Buyer'' in, to, under and pursuant to the Purchase Agreement (collectively, the "Contract Rights"), except as provided in Sections 7 and $ below. 2. Assumption of Oblisations. COX agrees to accept the assignment and assume all the obligations, duties, responsibilities and liabilities of City as "Buyer" under the Purchase Agreemenq except as provided in Sections 7 , and E below. wEST\159226,r B l s-l EXECUTION COPY O8.O4.I 5 Purchase Price and Deposit. 3.1 Price. The total purchase price to b€ paid by COX to City for the assignment of the Contract Rights shall be $22,556,769, paid in immediately available cash pursuant hereto. 3.2 Deoosit. Within three (3) days following the Effective Date (i.e., August 7, 2015), COX shalt deposit $250,000 (the "Deposit'), and COX and City shall deposit fully executed counterparts of this Agreement, with Chicago Title Company, Attn: Mike Slinger (the "Escrow AgenC'). 3.3 Maintenance of Deposit. The Escrow Agent shall cause the Deposit to be placed in an insured, interest-bearing account acceptable to COX and City (the'Deposit Escmw') within one (l) business day following receipt of the same. Any interest eamed on the funds in the Deposit Escrow shall be retained therein and added thereto (and the term "Deposit''as used herein shall mean the Deposit plus any additional funds deposited therein and all interest eamed thereon excluding the Extension Deposit and the DDP Extension Fee). 1.4 Balance of Purchase Price. COX shall deliver to Escmw Agent the balance of the Purchase Price no later than 9:00 a.m. Los Angeles time on the Closing Date, which upon the Closing shall be disbursed by Escrow Agent to City. 3.5 Failure to Deliver Deoosit. lf COX fails to deposit the Deposit or other amounts owing pursuant hereto with the Escrow Agent srrictly as and when contemplated herein, City shall have the right to terminate this Agreement by delivering written notice thereof to COX. 3.6 Extension Deposit- It is acknowledged that because of the duration ofthe Due Diligence Period and the days that follow beforc the Closing, the Closing will not occur prior to August 12, 2015, which is the next scheduled closing date under the Purchase Agreement. [n addition, if COX exercises its rights to extend the Due Diligence Period in accordance herewith, then the Closing will not occur prior to the ensuing closing date under the Purchase Agreement in the month following any such extension. City will incur an additional $25,000 extension fee per month under the Purchase Agr€ement, which City shall continue to pay to Seller either as cash or a release of funds from the Remaining Deposit to the extent City receives the extension payments lrom COX described herein, As compensation therefor, COX agrees to deliver to Escrow Agent, concurrently with is delivery of the Deposit, an additional $75,000 (the "Extension Deposif'). If COX fails to deliver such amount to City on or before said date, then the same shall constitute a material default by COX hereunder. The Escmw Agent shall disburse $25,000 of the Extension Deposit to Ciry on each of August It,2015, September tl,2015 and October 9, 2015, unless prior to any such date, the Closing has occurred. If wEsTa592?6-[ ] l s-2 3. EXECUTION COPY 08.04. I5 the Closing has occurred prior to any such date, then any remaining Extension Deposit shall be retumed to COX. If COX terminates thii Agreement prior to August ZS, 2015, then $25,000 of the Extension Deposit shall be rehmed to COX and the remaining $25,000 shall be disbursed to City. If COX terminates this Agreement after August 25, 2015, then the Extension Deposit shall be deemed fully eamed, due and payable, and Escrow Agent shall disburse the same to Ciry within one (l) business day after COX's termination. Disbursements ro City in accordance herewith shall be made by Escrow Agent to an account designated by City based on a unilateral instruction by City to Escrow Agent and without the need for any approval of, or instruction from, COX. There shall be no offset or credit against the purchase price for any disbursement to City of any portion of the Extension Deposit, it being agreed that the same is separate and independent consideration lor certain agreements of City herein. The provisions of this Section 3.6 shall survive any termination of this Agreement and shall not be subject to the limitations on remedies of City set forth in Section 13. Due Diligence Period: Restrictions: Termination Risht. 4.1 Due Diliqence Period. COX shall have the period commencing on the Effective Date and ending at 5:00 p.m. Los Angeles time on the date that is twenty-one (2 I ) days thereafter (August 25, 20 t 5[such period of time, as the same may be extended in accordance herewith, being hereinafter referred to as the *Due Diligence period',), to review the Due Diligence Materials (as defined below) and any information relating to the property and inspect the Property and to conduct such tests and investigationJas it deems advisable in order to determine that rhe pmperty is acceptable tocox. 1.2 Exiension oflDue Dilisence Period. COX shall have the right, on two (2) occasions, to extend the Due Diligence Period, in each case lor thirty (30) days each (the first extension period would end on Septembe r 24,2015, and the second extension period would end on October 24, 2015). IfCOX desires to extend the Due Diligence period, COX shall send norice to City of such intent not later than 5 p.m. Los Angeles time on the date that is one (l) business day preceding the then-expiring Due Diligence period (such notice being an "Extension Notice"). prior to noon Los Angeles time on the last day of the then-expiring Due Diligence period for which COX has delivered an Extension Notice, COX shall deliver to Ciry, by wire transfer in immediately available funds, an extension fee in thi amount of 5250,000 (the "DDP Extension Fee,'), which extension fee shall be deemed due and payable and fully eamed by City upon the giving of the Extension Notice. If COX fails to deliver the DDp Extension Fe; on or prior to noon Los Angeles time on the last day of the then-expiring Due Diligence Period, COX's Extension Notice shall be deemed ineffective. There shall be no offset or credit against the purchase price for any DDP Extension Fee, it being agreed that the same is separate and wEsn:i9226411 l s-l 4.3 EXECUTION COPY 08.04. I5 independent consideration for the righr of COX to extEnd the Due Diligence Period. pmvided to COX, except as expressly stated herein. Right to Terminate. COX shall have the right to terminate this Agreement, at any time prior to the end of the D same may be extended herein), by notice given to Diligence Period, COX, in its sole and absolute di with the Contract Rights for any or no reason whatsoever. If COX so issuance of the tirle policy at Closing. Except as stated herein, COX is taking by assignment the Contract Rights, and purchasing the property, AS-IS, with alt faults and defects, subject to and in accordance with the Purchase Ageement. The foregoing shall not however limit COX's right to terminate the Agreement prior to the expiration of the Due Diligence Period in accordance herewith. -conditions of the Purchase A$eement) and the Due Diligence Materials. Notwithstanding the foregoing, in no event shall (a) COX;s entry onto rhe 4.4 4.5 WEST\259:261 I I l S-1 4.6 EXECUTION COPY 08.04.I 5 disturb the on-going operation or rights ase Agreement. COX shall deliver any to City in accordance with the Purchase Agreement. COX shall afford City an opportunity to have a representative of City present to accompany the party undertaking such on-site inspectiong tests or investigations. After making any tests, inspections or investigations, COX shall promptly restore the property to as near the condition that existed prior to making such tests and inspections as reasonably possible (which obligation shall survive the Closing or any termination ofdris Agreement and shaltnot be subject to the limitations on renredies of City set forth in Section l3). Prior to COX entering the Property to conduct any inspections, tests or investigations, COX shalt cause each of its contractors and agents to maintain (and shall deliver to City evidence thereot), at no cosr or expense to Ciry, general liability insurance, fmm an insurer licensed in Califomia, in the amount of Two Million Dollars ($2,000,000) combined single limit for personal injury and property damage per occurrence, such policies to name City and Seller as additional insured parties, which insurance shall provide coverage against any claim for personal liability or pmperty damage caused by COX or its agents, represenLatives or consultants in connection with such inspections, tests and investigations. COX shall pmmptly deliver ro City copies ofall of this Agreement and shall not be subject !o the limitations on remediesof City set forth in Section l3), pmvided that COX makes no representation or warranfy regarding the same. Purchase Asreement. Notwithstanding anything to the contrary herein, COX acknowledges and agrees that all it by City, and all activities conducted hereunder i diligence, are subject to the terms and conditions nt. To the extent ofany conflict between the terms of this Section 4 and the terms of the Purchase A$eement, the provisions which are most restrictive with rcspect to the due diligence activities shall govem. Confidentialitv. From the Effective Date until Closing, COX agrees (a) ro keep all studies, reports, test results and other information conceming che Property fumished to or obtained by COX in connection wirh this Agreement confidential and not to disclose or reveal any such matters to any peson other than COX's representatives and consultants who are actively and directly participating in the evaluation of the Property or who otherwise need to know the information for purposes of evaluating the Property or investing financing or developing same (or as otherwise required to be disclosed by law), and (b) not to use the informarion tbr any purpose other than in connection with COX's evaluation of the property. The provisions of this Section 4.7 shall survive any termination of this 4.7 w8sn259226{ll J s-5 EXECUTION COPY 08.04.I5 Agreement and shall not be subject to the limitations on remedies of City s€t forth in Section 13, but shall be ofno further force or effect following i Closing. 4.8 Contacts with Third Parties. COX shall obtain City,s prior reasonable approval of any contact made by COX, its employees, agents, representatives, contractos or consultants with a third party with a contractual relationship with Ciry with respect to the property of which COX has written notice (excluding Seller), as well as any govemmental authority contacted or to b€ contacted with respect to the property (,,Third Parties"): provided, however, any notice under this Section 4.9 may be given via email to City to hpatel@ci.vemon.ca.us wirh a copy to michael.hamilton@dlapiper.com and C ity's i'ai lure to reasonably object within three (3) business days shall be deemed City,s approval theriof. COX shall afford City or its representative(s) an opportunity to be pr€sent at any such interview or meeting with such Third parties (including a meeting or interview. conducred by phone). COX shall copy City on all material correspondence with the Third parties. COX shall not be obligated to obtain City's prior approval to contact govemmental authorities (a) to determine the zoning and land use restrictions applicable to ary of the Property, including, without limitation, plan and permit checks or (b) flor background information necessary to obtain phase I env ironmental r€ports. 4.9 lndemnitv. COX shall keep the Property lree lrom all liens created by or through COX, and shall indemnifo, defend, and hold harmless City, Seller and their respective members, managers, partners, officers, directors and shareholders, as the case may be, and each of rheir respective members, managers, partners, ofticers, directors, shareholders, agens, employees and attomeys, and their respective successors and assigns (collectively, the "Indemnified Parties"), from and against all claims, actions, losses, liabilities, damages, costs and expenses (including, but not limited to, reasonable attomeys' fees and costs) incurred, suffered by, or claimed against the lndemnified Parties, or any of them, by reason ofany damages to the Property or injury to persons caused by any entry or activities upon the Property by COX and,/or its agents, employees, representatives, cont:actors or consultants, or arising out of or resulting from COX's due diligence investigation of the Property, including the inspections described under this SSS!9(; provided, however that such indemnification obligations shall not include any damage or injury to the extent the same shall arise (i) from the negligence or intentional misconduct of an Indemnified Party, or (ii) out ol the discovery of a pre-existing condition with respect to the Property. The provisions of lhis Section 4.9 shall survive the Closing or any termination of this Agreement and shall not be subject to the limitations on remedies oflCity set forth in Section 13. Representations. Warranties and Covenants. WESTU592264 l] i s-6 EXECUTION COPY 06.O4.I 5 5.1 ln order to induce COX to enter into this Agreement, City hercby represents and warrants to, and covenants with, COX as follows: 5.1. I Attached hereto as Exhibit A is a true, correct and complete copy of the Purchase Agreemenl The Purchase Agreement has not been amended, assigned, or modified in any respect, and remains in full force and effect. There are no agreements or understandings between Seller and City, in City,s capacity as buyer under the Purchase Agrcement, regarding the Property which uould be binding on COX after the Closing other than the purchase Agreement and the agreements contemplated io be executed in connection therewith. 5.1.2 All representations and warranties made by City in the purchase Agreement were true, conect and complete as of the execution date thereoi and remain true, correct and complete as of the date hereof. 5.1.3 Subject to the dispute noted herein in Section 6. City has not received fmm Seller written notice ofany default by City under the Purchase Agreement, and to City's actual knowledge, City is not in default in any ma0erial respect under the pur€hase Agreement. City shall promptly provide COX with copies of all notices received by City from Seller under the Purchase Agreemenl Since April 7, 2015, City has nor delivered any notice ofdefaulr ro Seller under the Purchase Agreement, and to City's knowledge, since Aprit 7,2015, Seller has nor defaulted in any material respect in the performance of irs obligations under the purchase Agreement. The representations in the preceding sentence are provided for informational purposes only, it being agrced that any default by Seller under the Purchase Agreement shall not give rise to any liability of City hereunder. 5.1.4 City has not previously assigned its Conhact Righrs to any other person or entity which assignment remains effective (including, without limitation, any assignment ro pl Fruitland, LLC). 5.1.5 Subject to Section 10.1. City has the legal power, right and authority to enter into this Agreement and the instruments referenced herein, and to consummate the transaction contemplated hereby and the individuals executing this Agreement and the instruments referenced herein on behalf of City have the legal power, right and actual authoriry to bind City to the terms and conditions hereof and thereto. 5.1.6 Subject to Section 10.1, all requisite acrion (corporate, partnership or otherwise) has been taken by City in connection with the entering into of this Agreement, the execution and delivery of the WEST\:5i):264 l] _3 s-7 5.2 EXECUTION COPY 08.04.I5 instruments referenced herein, and the consummation of the transaction contemplated hereby. ln order to induce COX to enter into this Agreement, City hereby covenants to COX as follows: 5.2.1 From and after the Effective Date, City will not enter into any further amendments, modifications or supplements to the purchase Agreement with Seller, nor will City terminate, or waive any material rights under, the purchase Agreemenq or grant is consenior approval to any matter which is subject to its consent or approval under the purchase Agreement, in all cases without COX's prior written approval (not to be unreasonably withheld, conditioned or delayed). Without limitation to the last sentence of Section 5.4, if COX fails to approve or disapprove any request for its consent under this Secrion 5.2.1 within five (5) businiss days after request, COX shall be deemed to have approved the same. 5.2.2 C-ity shall diligently perform all duties and obligarions rcquired of City as buyer under the purchase Agreement so as to effect the Closing, to the extent the failure to do so would alford Seller the righr to terminare the Purchase Agreement. Purchase A$eement; provided, however, that Ciry is not required solely by this provision to give the Closing Noticeio Seller. In order to induce City to enter into this Agreement, COX hereby reprcsents and warrants to City as follows 5.3.I COX is a limited liability company, duly formed, validly existing and in good standing under the laws of the State of Delaware and is qualified to do business in the Sate of Califomia. COX has lull righq power and authority to enter into this Agreement and to consummate the fansactions contemplated hereby; thc person signing this Agreement and any of the other documents on behalfof COX has full power and authority to bind COX; and when with their terms. 5.1.2 COX is in compliance with the requirements of E.xecutive OrderNo, I3224, 66 Fed Reg. 49079 (September 25, 2001) (the 53 WEST\2592264 ti l EXECUTION COPY O8.04.I 5 'Order") and other similar requirements conhined in the rules and Office of Foreign Asset Conkol, Department ofFAC") and in any enabling legislation or otherin respecr thereof (the Order and such other !?f.i?;qt?Iools Required (rhe '.parriot Acf'I COX: (a) is not listed on the Specially Designated Nationals and Blocked Persons List mainrained by OFAC pursuant io the Order and./or on any other list of terroriis or terrorist organizations maintained pu:suant to any of the rules and regulations of OFAC or pursuant to any other applicable Orders (such lists are collectively refened to'as the"Lisb"); (b) has not been determined by comperent authority to be subject to the pmhibirions contained in the Orders; and (c) is nor owned or controlled by, nor acts for or on behalf of, any percon or entity on the Lists or any other person or entity that has been determined by comietent "rtho.ity to be subject to the prohibitions contained in the Orders. 5.3.3 COX understands thar the consummation by COX of the transactions contemplated herein andlor undir the purchase Agreement are not contingent upon the receipt of any financing by or other extensions ofcredit to COX 5.4 If and to the extent the p for City, as buyer *rereu shall promptly provide a c COX shall then respond at under the purchase Agreement. If COX does not so respond, City reserves the right to decide how to respond to Seller in its soli Aiscretion. COiwill be bound by any such decision of City in such instance. 6' Pq.ior Disoure. City has informed coX, and coX acknowledges that ciry and ]-"],:1 *:." previously in a.dispute regarding, among other things, Seller,s pJrlo*un"" 'una-"i the Purctrase Agreemenr. rn order to resorve such dispute, City and Se ei enlered into rhatcenain Second Amendment to Standard offer, Agreemeni and Esc.orr lnstructions ror rhePurchase of Real E-srale, a copy of which is incrudeJ in Exhibit A attached herero (the ..Second Amendmenf'). COX has reviewed the Second Am*Orn"niana ne..by app-re, oi oiJconsents to t!e.sa1e, and agrees to accept and assume the same and be bound riri"uy * "r trr"assignment ofthe Purchase Agreement by Cify to COX- wEST\15q216411 ] s-9 EXECUTION COPY 08.04. I5 7. Reserved Riehs. 7.1 COX acknowledges that the S (a) release of the Remaining Dep approximate amount of $600,000 r the Purchase Agreement of certainnt of g 1,426,915) ll rights with respect seller Payments. If and to the exrenr cox **,*.,i""'#p""[|H $,t:(or as a disbursement from escrow under the furctrase egreement), COX the escrow agent under the purchase Agreement to pay any such SellerPayments directly ro City, and not to COX. 11^:_"1.-,9:*,i", for.City cooperating and joining in rhe execution of anydocuments required to effectuate the closing under the purchase Closing und t occurs prior to the closing e Agreemen tly with rhe delivery of thl the Closing shall deliver to the Escrow equal to the nce belween (a) the Seller payments Serrer payments Escrow to b" r"r"^"0tlj .;T:"til:::111,ff:",t: Payments shall be made to City pursuant to Section 7.1 above, If theclosing^under the purchase Agreement has noriEGliittri, tfri.ry f:Oldays after the Closing, then the Escrow Agent shall .uu.a th" Er".o* scrow. Upon the making nls Escrow to city, ciry d its rights to rhe Seller reasonably cooperate with COX , if made by Seller, are delivered to The.provisions .of this Secrion. Z shall survive the Closing or anyterminarion-of this Agreement and shall not be subject o the timiiations onremedies of City set forth in Section l3 7.2 , .. . 1' Einanciar Assurance- concurrentry with the derivery ofthe purchase price, coXshall deliver to Escrow Agent an amount equal to st,zso,ooo 1tt,"Financial Assurance is provided by COX in accordance f,"..*iiithe City rhar COX (and./or irs tenant) will utilize at rhe p;p;; wEsn2592264ll l s- t0 EXECUTION COPY 08.04. I 5 trailing l2-month period, of(a) 3.3 mega watrs and (b) 4.8 mega watts ofelectrical power on o electrical power on or before Januuy l,2023 Hurdle'). If COX andTor irs tenant achieves applicable thereto, and City confirms the same (plus a pro rara ial Assurance) shall be disbursed byEscrow Agent to rually executed by COX and Ciry. ifa Consumption e date, then l/3rd of the FinancialAssurance (plus t accrued on the Financial n..uron""1 ,fruit-U"deemed fully eamed by, and due and payable On or prior to the Closing, COX and City shal acceptable escrow agreement in connection wi equally any costs charged by Escrow Agent in Assurance. This provision shall survive the Closing 9' closing. The crosing of the assignment ofthe purchase Agreement contempratedby this Agreemenr (rhe t'closing") shall be rhe date that is ren (10) dayiafter tne expiration oithe Due Diligence Period as it, or the Closing, Date"); pmvided that COX has not rerminated so herein. For circumstances other than a defa below), if any condition prccedent stated herein waived prior to the closing Date, for any reason other than coX,s default, CoX may, as its soreright and remedy, terminate this Agreement, in which case this Agreement shalr be ofno furtherforce or effect and the Escrow Agent shall, and is hereby instruited, without need for rurtherinstruction' to, retum the Deposit to coX within one [li business aay or ."quest tne.eio.;provided, however, the foregoing sha[ not rimit the provisions of Section t3.i b"r; -i;; circumsrances orher rhan a default by COX (which is governed fV Sssliga_E2 below), if acity s condition Precedent (as defined below) has notleen *ti.n"alriuiGi prio. io tteclosing Date, for any reason other than city's defaurt, city may terminate this Agreement, inwhich case this Agrcement shall be of no funher force o. "ff""t und th" er"ro* ng#t ,t uit, *Jis hereby instructed to, immediately rerum the Deposit to coX. closing shall takl place at the Agenq provi may be sent to the Escrow Agent the Closing instructions for the Escrow Agint.ity shall assi Assignment (defined below) and the Purchase ct to the other conditions stated herein. 10. cityls Conditions pre-cedent. The folrowing shall be conditions precedent toCity's obligation herein to assign the Contract Rights o -COX as provided hercin (,,City's Conditions Precedent"): l0.l The City Council of the City of Vernon shall have approved (a) this Agreement, and (b) such other matters as are related hereto as determined necessary in the discretion of City staffl lf the City Council has not approved this A$eement within ten (10) business days from the EffectiveDate, the Due Diligence period (as the same may be extended in accordance herewith) shall be further extended on a day 6y day basis untilthis Agreement is approved. If rhe City Council has not approved this Agreement by August 31, 2015, this Agreement shall terminate and the wEsT125922648l S.I I EXECUTION COPY 08.04. 15 tension Deposit if any pursuant to Section J.6 and deposired by COX with Escrow Agent ihall d to COX. l0'2 As of the crosing Dare' coX's representations and warranties contained herein shall be true and correct in all materiar respects ard cox shari iot be in default ofany material obligation herein; 10.3 coX shalr have executed and derivered to the Escrow Agent at reast one ( l) business day prior to the Closing Date, rhe following: 10.3. I The Assignment and Assumption of purchase and Sale Agreement in the form attached hereto as Exhibit B (the *Assignment-.); 10.3.2 A power purchas a form to be nego Diligence period to terminate this immediately rerumed to COX. Upon agreement to the form, the parties shall acknowledge same in writing; and 10.3.3 All documents rcquired to be executed by the..Buyer,, under thepurchase Agreement for purposes of effectuating the Closing therer:nder (which Ciry will request fmm Sellei prior to thi Closing). 10.4 COX shall have delivered !o the Escrow Agent, on or prior !o 9:00a.m. (Los Angeles time) on the Closing Date, for disbursernent as directed hereunder, arl cash and/or other consideration and./or other immediatelv available funds due from COX in accordance with this Agreemeni including without limitation the purchase price and the -Financiai Assurance. 10.5 On o of irs first due diligence extension right (to the e or, if such extension is not eKerci;d, tileClosi I shall have delivered to City a copy of the agreed upon form ofthe executed lease berween COX and rplanii Earth, LLC, a Delaware limired liability company ("rplanet Earth,,) which shall be binding on the parties thereto upon the Closing of this Agreement and pursuant to which rplanet Earth leases the property for a minimum of ten (10) years for purposes ofoperating a plastic recycling faciliry (the ,,Lease Agreement',). The conditions set lonh in this Section l0 are sorely for the benefit of city and may be waived only by city, city shall, at all times prior to the rermination of rhis Agreemenq have the right towaive any of such conditions. cox shall use go )d faith effons to cause the foregoing condi*tions to occur. wEST,2592:6,rI] l s- 12 EXECUTION COPY 08.04. I5 It. COX,s obli The following shall be conditions precedenr ro Conditions me the purchase Agreement fmm City (..COX,s I L I As of the _Closing Date, City,s representations and waranties containedherein shall be true and corrict in all material respecrs *a CiiV J.l ""ibe in default ofany materiat obligation herein; 11.2 The purchase Agreement shallbe in fullforce and effect: and r r'3 city shart have executed and derivered to the Escrow Agent on or prior ro9:00 a.m. (Los Angeles time) on the Closing Date, the n!.ig"."nt.;J rh"power purchase AgrcemenL The conditions set fonh in this Section l I are sotery for the benefit ofcoX and may be waivedonly by CoX. CoX sha , at alr times prior to rhe ierminarion oitt i. ng.e",nenr, r,J""ir,".riiito waive any of these conditions. 12- Pre-NesotiationLetter:Non_Exclusive. l2.l PNLA. City,_COX. Randy Kendrick, Xebec Realty parhers and rplanetEarth are pan-ies to that certain leter a$eement datid as of June 30, 2ai;(rhe..pNLA,). The pNLA is incorporated herein by this reference. iheobligations thereunder shafl survive ihe crosing or the earrie. te.minationof this Agreement. By irs execution of this Agreement, COX ratifies anJconfirms its agreement to the terms of the FNLR; provided, h";;*"nothing herein is intended to affect the rcpresentations and warranties under this Agr,-eement given by Chy. 12'2 Non-Excrusive. without Iimitation ro any other provision herein, Coxacknowledges and agrees that City is cunently in discussions withmultiple parties regarding potential transactions with ,r.t, pr.t;". inrelation to the property (i cluding potential assignmens of rhe ContraciRights and/or .sale of the property to such otf,er partieO. CitV maycontinue such discussions and may enter into agreements with such otherparties, prov ided the consummation of the transactions thereunder iscontingent on the, iermination of this Agreement. COX waires any .ighito object ro such dealings by City with such other parties. 13. Default. l3.l CgX's Bsrnedi-es Eof Ciry's Default. Il, as of the Closing Date, (a) each ecedent as set lorth in this Agreement have City, and (b) City fails or refuses to timely to COX in accordance with the terms and breaches its materrar orr i gatriltr i!x:frf""" i,ll,8,ilf;Jrft :'i:TJ;such breach or.default within ten (10) business days'following **ip, "fwritten notice thercof, except on accounr of a breaih or defauli hereunder wEsn:592?64 I] l S-I3 EXECUTION COPY 08,04. I 5 byCOX, COX may elect one of the following remedies (and COX herebywaives any and all orher rights and remedie! against City); (i) terminateCOX's obligations unde.r_ this Agreement b/ written notice to City(excluding obligations *h]..! ,: expressly stated ro survire any sucLrerminarion) and receive a full refund ofthebeposit, or (ii) bring an action for specific performance of this Agreement. w if at all, no later than ninety (90 Excepr as provided lor above, C action for damages (including special and punitive damages) ari or City's delault hereunder. CO with actual knowledge of a bre prior to the Closing (including without limitation a breach of any r€presentation or warranty of City herein) shall conclusively constitu; COX's waiver of any and all claims against City on account thereof. 13.2 Cjty's Rqmedies For COX's Default. lf, as of the Closing Date, (a) eachof the COX'S Conditions precedent as set forth in this Agreement have been satisfied or waived, and (b) COX lails or refuses ro rimely coJlsummate the Closing in accordance with the terms and conditions of this Agreement, and COX has failed to cure same within ren (10) days lollowing receipt of written notice ahereof, except on account of a breachor default hereunder by Ciry, Ciq may elect, as City,s sole remedy, to terminate Ciry's obligations under this Agreement by wriuen notice roCOX _and_keep tle Deposit as liquidated damagei. The floregoing provision shall not timit Ciry's rights m Extension Diposits under Section 1.6 or DDP Extension Fee under Secrion 4.2, or City's ,"r.diiiii[ respecr to any obligations of COX which are expressly stated to survive the termination ol.this Agreement and,/or which are expressly stated not to be subject to this Secrion 1J.2. The parties hereby agree that rhe amounr of the Deposit shall be and constitures liquidated damiges. COX and City acknowledge and agree that it is difficuh or impossibTe to determine rhe actual damages City would suffer f m COX's breach hereof and that the agreed upon liquidated damages are not punitive or penalties and are just, fair and reasonable. THEREFORE, BY PLACINb THEIR INITIALS BELOW, THE PARTIES ACKNOWLEDCE THAT THE DEPOSITHAS BEEN ACREED UPON, AFTER NECOTIATION, AS THE PARTIES' REASONABLE ESTIMATE OF CITY'S DAMAGES ANDAS CITY'S EXCLUSIVE REMEDY, AT LAW OR IN EQUITY,ACAINST COX IN THE EVENT THE CLOSING IS NOT CONSUMMATED BY REASON OF A BREACH OR DEFAULT BY COX UNDER THIS AGREEMENT. Ciry hereby waives irs right ro bring any action lor damages (including without limitation actual, consequentiaIrp.cll Td punitive damages) arising out of or relating ro this Agieementor COX's delauk hereunder, except an action to ."cov". thJ Deposit following a COX's default and subject to Ciry's rights to exercise all available remedies at law or equity with respict to- maners which are expressly excluded herein from the limitations of Section 13. wEsTr259:2641I l s-t4 EXECUTION COPY 08.04. I5 Initials: COX ll'3 Survivar. The provisions or this section r3 sha, survive any ,.rminationof this Agreement 14. Bmkeraee. City and COX each r?resent and warrant to the other that they havedealt with no other real estate. brokers with respect to ttre transaction contemprated by thisAgreement. Ciry and coX each agree to ind mnify, a"r"na ura hold rhe orher i,u"rr."J rrr,,and against any claim or liability, as well as tions on remedies of City or COX set forth in 15. Miscellaneous. l5.l BusinessDays..'Business assigned to same in Secti flor perflormance of any o other than a business da exercise of such right s succeeding business day. 15.2 Time. Time is of the essence in the performance of each pany,s obl igations hereunder. I5.i +ttoTEjis' Feeq. lf any party shall bring an action or proceeding againstthe.other pany by reason.of the breach oir alleged violaiion of an| te-.m o.obligation hereof, or for the enforcement or inf,rpretation ofany provisionof this. Agreement, the prevailing pany in such action or proceeding shall be entitled to its reasonable costs and expenses of suit, including, biut notlimited to reasonable attomeys. fees, which shall be payable whether ornot.such action is prosecu:ed to judgment, and withouireiard to any otherlimitation on remedies provided heriin. I5.4 No. Waiver. Subject to the deemed approvals under this Agreemenl nowaiver by any party of rhe performanc; or satisfaction of any covenant orcondition shall be valid unless in writing, nor shall it be considered o be awaiver by such party ofany other coven.ant or condition hereunder. I 5.5 Entire Asreement. This Agreement contains the entire agreement between the parties regarding the Contract Rights and the purchaie Agreement andsupersedes arl prior agreements, whether written or orar, between theparties regarding the same subject. This Agreement may only be modified by subsequent written agreement signed by-the party to 6e chargeO. tvEsT\:592264 D l s- t5 EXECUTION COPY 08.04. I5 15.6 Fu{ther Assurances. Before and after Closing, each party shall execute and deliver to the other party all such documenL that such ottrer party mayreasonably require to effect, co tfirm or otherwise perfect the t_n.f". oiproperty and other covenants and agreements of thi parties conternplated by this Agreement. 15.7 Sucgess.ors. This Agreement shalr bind and inure to the benefit of theparties hereto and to their respective successors and assigns; provided, however, that none of the rights or obligations of COX hereundei shall betransferred or assigned by COX withoui the prior written consent of City,which .consent may be granted or withheld in City,s sole and absolute discretion; provided, however, that COX may, without the consent of City, assign its rights under this Agreement to any entity which is controlled bi,controlling, or under common ccntrol with COX and which is owned atleost 25yo directly or indirectly, by (i) CAM Fruitland Capial LLC, aDelaware limited liability company and affiliate of iohen AssetManagement, Inc., a California corporation, (ii) Fruitland XC, LLC, aDelaware limited liabiliry company and affiliate of Xebec Development Company, a Califomia corporation, and/or (iii) j200 Fruitland CAp, LLC,a Delaware limited liability company and affiliate of Oaktree iapitai Management, Lp, a Delaware limited partnership. No p"*itt"d assignment or transfer by COX shall relievi COX fiom its obligations hereunder, it being undemood that upon any assignment or transfer COX shall remain liable to City for the performan"" oith" obligations of COX hereunder. 15.8 d to the extent the risk of loss, due to casualry or hange to the Property is bome by Ciry as buyer ement, COX shall also bear the same risk. As such, unless City has a right to terminate in relation to the occurrence of some event or condition first arising hereafter, COX acknowledges and agrees it shall have no right to terminate in relation to such event, circumstance or condition. lf City has a right to terminate, it shall not exercise such right without first having obtained the consent ofCOX, andif COX so consents and City so ferminates the purchase Agrcement, rhis Agreement shall be ofno further force or effect and the Deposit shall be retumed to COX. If COX does not consent, Ciry will not terminate the Purchase Agreement, and COX shall be bound io close the rransaction contemplated hereby and under the purchase Agreement in accordance herewith and therewirh. The terms of Section 5.4 herein shall govem with resp€ct to rhe giving oflany such consent by COX in relation hereto. 15.9 Counteroarts and Effectiveness. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same agrcement, and-this Agreement shallonly be effective ifa counterpart is signed by both Ciry and COX. wEsT\25922648I s-r6 EXECUTION COPY 08.04. IJ 15.10 Severabiliry. [n the evenr any provision of this Agreement shall beheldtobe invalid or unenforceable by any court of com"petent lurisdiction, suchholding shall not invalidate or render unenfo."ealle any otf,e, provisionhereof. l5.ll Recording. Neither this Agreement nor any memorandum hereofshall be rhe.Office of the County Recorder of the county inis located,.or in any other public records ofiny attempt ro do so may be treated by the other party as his Agreement. I 5.1 2 No Thitd Partv Beneficiaries. lity and COX agree that it is their specificintenr rhat no bmker or any otl ,ithi.d party, iicluding Seller, shall be a par.ry to.or a.third party beneficiary of this Agreement -or the escrow; andfurther that the consent ofl a brokei or other t-hird party, including Siller,shall not be necessary to any agreement, amendment, or documint with respect to the transaction contemplated by this Agreement. This sha[ not,however, affect the righs ofany pa.ty pu.suant to-a separate agreement. 15'13 confidentialitv. The parties agree that the terms and conditions of thisAgreement are confidential and shall not be disclosed to any rhird parties, except for the parties' respective principals, investors, .rnjIoy"".,'"g"nt"(including without limitarion Escrow Agent), and consultanti linctu'dingwithout limitation attomeys, accountants, and brokers), lenders, partneri and prospective lenders and partners having a legitimate need for rheinformation requested, and except lor discl-osures- required by law ornormally provided by Ciry in connection with City,s govimmental practices and obligations, or as and to the extent requirJd under the Purchase Agreement for purposes of effectuating the assignment of the Purchase Agreement. The pmvisions of this Sec-iion l5.t j shall surviveany termination of this Agreement and shall noi be subjecr ro thelimitations on remedies of,City set forth in Secrion lJ, bur shall expire and be of no further force or effect upon a Cloring. -15.14 Construction. The language in all parts of this Agreement shall be in all cases construed simply according to iS flair meaning and not strictly for or against-any of the parties hereto. Section headings ofl this Agreement are solely for convenience of reference and shall not lovem the iiterpretationof any ofthe provisions of this Agreement. R"f.-."n"", to .,Sections,, are to-Secrions ofthis Agreement, unless otherwise specifica y provided. All references made (a) in the neuter, masculine or ieminine gender shall be deemed to have been made in all such genders, and (b) inlhe singular orplural shall be deemed to have been made, respectiveiy, in the piural or singular as well_ 15.15 Goyemine Law. This Agreement shall be govemed by and construed under the laws of the State of'Califomi4 without regard to conflicts of lawprinciples. wEs r\2ie?264l]I s-17 EXECUTION COPY 08.04. I 5 15.16 police powers. COX execution, delivery and solely in is capacity as t of, the purchase Agreeme the Ciry (.,City Depa permitting and/or orher Withour limitation theret Agreement expressly or any such City Departmen fair dealing, either in the state or lederal law or ot development and/or use approvals from such City cause the City Departm Departments compelled in City Department,s to any approval, or the like shall not lN wlrNESs wHEREoF' the parties hereto have execured this Agreement as of the darefint set forth above. ..CITY'': CITY OF VERNON Name: W. Michael }lccornick Approved as to form: DLApipm, [Signatures continue on next page] By, Its: wEsTui92:64I] ]s-r8 "COX': FRUITLfuID OWNER LLC. a Delaware limited liability company By, Fruitland JV LLC, a Delaware limited liability company, its Sole Member By: Fruittand COX Venture LLC, a Delaware limited liability company, its Sole Member By, CA,rlI Fruitland Capital LLC, a Delaware limited liabiliry company, its Sole Member By: Cohen Holdings 20f5 LLC, 1 D,ellware limited liability company, is Sole Member Title: Bradley S. Cohen President & CEO wEsTEi92l6. l l s-2 EXHIBIT A PURCHASE AGREEMENT [copies attached hereto] wEsT\259216.r B l Exhibit A- | and as further amended by that certain Third A(the "Third Amendmenf'). The First re+ment',) and is made subject to the terms and ed herein by this relerence as if more fully set .By acc_epring this Assignment, Assignee assumes and agrees to perflorm all of theobligations of Buyer (as such tenn is defined under the purchase Agreement) under the purchase Agreement. . . .Tlir Assignment may be executed in counterparts, each of which sha be deemed anoriginal, but allof which shall constitute one and the same agreement. EXHIBIT B ASSICNMENT AND ASSUMPTION OF PURCHASE AGREEMENT ISTGNATTJRES AppEAR ON FOLLOWING PAGEI wEsT\2592264 [ ]Exhibit B- l IN WITNESS WHEREOF, the panies hereto have execured this Assignment on rhe dareand year written below. Dated: August _, 2015 ASSIGNOR: City of Vemon Approved as to fonn_ Ole. eipe. t-le iUS;Jpeciat Coun-sel68uye.- Narfe: y- ur "n^"i rqlill,,Ii_- Itjle-: u vor . ACCEPTED BY: ASSIGNEE: FRUITLAiYD OWNER LLC. a Delaware limited liabiliry company By Bv: Fruitlard JV LLC By: Fruitland COX Venture LLC, a Delaware limited liability company, its Sole Member By: CAM Fruifland Capital LLC, a Delaware limited tiability company, its Sole Member By: Cohen Holdings 2015 LLC, a Delaware limited liahili Name: Bradley S. Cohen Title: President & CEO wEsT\2is 75 t 7i.1 l By STAFF REPORT CITY CLERK DEPARTMENT August 18,2015 Ilonorable Mayor and City Council Maria E. Ayala, City RECEIVED JUL 2I 2015 CITY CLERI{'S OFFICE DATE: TO: FROM: RE:Approval of a Request for Expression of Interest and Information (RFI) for a Potential Records Management Program Request for Proposal (RFP) Recommendation A. Find that approval of the proposed Request for Expression of Interest and lnformation (RFl) does not constirute a "project" pursuant to section 15378(bX2) of the Guidelines to the Califomia Environmental Quality Act C'CEQA), because it constitutes an administrative activity; and even if the adoption of the proposed RFI did constitute a project, it would be exempt from CEQA in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and B. Approve the issuance of the Request for Expression of Interest and Information (RFI) to be used for the potential development of a Records Management Program Request for Proposal (RFP). Backeround The Office of the City Clerk has been working on a strategic plan for developing and implanenting a Citywide Records Management Program (Records Program). The key components of the forthcoming Records Program should address how diverse records throughout the various City departments are managed and retained in a manner consistent with city policies, procedures, and legal statutes. Equally critical, is ensuring that the records program is successful in its original intent and purpose in the long term. In the initial stages of the stmtegic planning process, staff has identified (in terms of City records) needs in the areas of: reassessment of the City's existing records retention schedule; onsite and offsite record storage/retention; consistent practice in use of City's electronic content management system; current policies and procedures on the overall management as well as the destruction of records, etc. It is as this point that we have come to the Request for Information (RFI) stage. Page 1 of2 RECEIVED JUL 2I 2015 CITY ADMI The RFI is seeking information on project methodology and approach in the creation and implementation of a Citywide Records Management Program. The RFI will enable staff to assess and compare what options, resources, and additional information are available so as to potentially issue a Request for Proposal (RFP) on the Development and Implementation of a Citylvide Records Management Program. The RFP, then, could be issued to address specific needs, expectations, services sought, and desired outcome for the Records Program. The Records Program development is one of the current department goals for the 201512016 fiscal year. Fiscal Impact There is no fiscal impact. The request seeks information only, the proposed does not award nor seek approval for a project that will incur expenses. As a result of the RFI, budgeted expenses related to the issuance of a Request for Proposal and/or award of a professional services agreement will be reported during the request for approval. Attachment(s) i . Request for Expression of Interest and Information Page 2 of 2 City of Vernon Request for Expressions of Interest and Information (RFI) Potential Records Management Program City of Vernon Office of the City Clerk 4305 Santa Fe Avenue, Vernon CA 90058 Phone: (323) 583-8811 Page I of 6 L lntroduction The City of Vemon is seeking information on project methodology and approach for the creation and implonentation of a Citywide Records Managanent Program that will establish: the Office of the City Clerk as the lead depaftment in the program: records management policies and procedures; consistency in the management ofrecords within each departrnent. The City's intent in issuing this Request for lnformation ("RFI") is to assess its options and potentially develop a Request for Proposals ("RfP) that will ad&ess the City's needs and concerns, further outlined in Section [V. II. City Background The City of Vemon was founded in 1905, is approximately 5.2 square miles in size and is located approximately 5 miles southeast of downtown Los Angeles Califomia. Over its long history Vemon has been developed as an industrial community. At the tum of the 20th century the lands that make up Vernon were comprised largely of farmlands. The presence of three major rail lines in the area led influential business and property owners to encourage the railroad companies to run spur lines onto the farmlands. These rail extensions enabled the creation of an "exclusively industrial" city. By the 1920's Vernon was attracting large stockyards and meatpacking facilities. In the 1930's Vernon became the location of choice for many heavy industrial plants. As economic conditions changed over the decades, these large scale industrial operations have relocated out of Southern Califomia and Vemon has attracted smaller, lighter industrial facilities. The City's business friendly environment, low cost utilities and key location for trucking and rail transport continue to position Vernon as an ideal location for industrial uses. City Government: The City Council consists of five members, elected at-large, who serve five-year staggered terms. The City Council annually appoints a Mayor and a Mayor Pro Tern from its own mernbership to serve one-ye.r terms. Labor Force: Vemon has approximately 250 employees, and its departments include a Fire Deparhnent, Police Department, Finance Departrnent, Public Works, Water and Development Services Department, Gas and Electric Departrnent and Health and Environmental Control Department. Present bargaining units recognized include the Vemon Police OfEcers Benefit Association, Vemon Police Management Association, Vernon Firemen's Association, the Vernon Fire Management Association, lnternational Brotherhood of Electrical Workers Local 47 , and Teamsters Local 91 1. III. Nature of the RFI The City of Vernon is seeking information on best practices, approach and methodology to address needs and concems described in Section IV for the purpose of possibly developing a RFP that will meet all of the City's needs. Page2 of 6 This RFI is not a solicitation or request for proposals that will result in a contractual relationship with the City of Vemon or commit the City to enter into a further agreement with any responding party. This should be considered only a request for information that will assist the City in assessing its options for potential development of a citywide records management program. ln addition to a response to the information requested here, the City encourages responders to submit additional information that they believe the City should consider as part of its comprehensive records management program. The City is not obligated to issue any future RFP as a result ofthis RFI process. The City reserves the right to discontinue or modify the RFI process at any time. All costs associated with responding to this RFI will be solely at the responder's expense. Respondents are also advised that this will be an open and public process. This RFI and any City issued RFP will utilize a public process, consistent with any requirements of Vernon Municipal Code that may apply, such as Code Section 2.17.00 et seq. The identity of all respondents, correspondence and responses will be a matter of public record, and the City is subject to the Califomia Public Records Act. Please do not submit any documents which you wish to remain confidential. Respondents are solely responsible for the accuracy and quality of the data used in their submissions and the information provided therein. DISCUSSION OF THE CONTENTS OF THIS RFI WITII ANY ELECTED OR APPOINTED CITY OFFICIAL MAY LEAD TO IMMEDIATE REJECTION OF TIIE RFI PROPOSAL AND MAY BAR THE PROPOSER FROM SUBSEQUENT PARTICIPATION. ALL CORRESPONDENCE TO THE CITY SHOULD BE VIA EMAIL TO THE OFFICE OF THE CITY CLERK AT CITYCLERK@CI.YERNON.CA.US. IV. Needs and Concerns to Be Addressed As the offrcial custodian of records, it is the sole responsibility of the Oflice of the City Clerk to manage and maintain the City's offrcial records for accessibility for both intemal and extemal purposes, in compliance with legislative mandates, as well as for historical purposes. The Office of the City Clerk will be the designated department to oversee the Citywide Records Program. A critical part of this endeavor is the City's Records Retention Schedule. The City's last records retention schedule update occurred in 2004 and is in need of a complete reassessment, in order to encompass all types of records, and determine best practices for managing, storing and properly destrofng records (in all formats including physical and electronic files) consistent with said schedule. Records for all Departments need to be evaluated for type, storage, volume, use, and retention format (i.e., media). Ln addition, reasonable retention periods need to be established. Departments maintain records in physical form in a variety of filing systems (onsite and offsite), Page 3 of 6 and in digital form utilizing Laserfiche and/or other applications/programs. The City has committed to one electronic content management system C'ECM), Laserfiche, and needs to work to implonent consistent and maximum use of, and transition of records to digital format to, the existing ECM system. Additionally, a method for proper destmction of records consistent with the retention schedule needs to be established, along with recommendations for best practice in monitoring and maintaining efficiency in records management from the departrnents and compliance with the City's established records retention schedule and records management policies and procedures. V. Format and Deliverv of Submission to Citv Respondents are asked to submit one (1) hard copy and one (1) electronic copy of their proposal in suffrcient detail to allow for a thorough evaluation and comparative analysis. The proposal should include, at a minimum, the following information in sectionalized format. A. Format. Limit your proposal to 20 tlped 8.5" X 1l" pages or fewer, on white bond paper ofat least 20-pound weight single sided (excluding cover letter and attachments). You may attach a firm brochure ifyou wish, but it must be as a separate attachment and independent from the required elements noted above. 1. Use a conventional typeface with a minimum font size of 12 points. Use a 1" margin on all borders. 2. Provide one (1) unbound original ofyour firm's response and one (l) electronic version in one of the following options: flash drive, compact disk, or via email to citvclerk@ci.vemon.ca.us with a subject line to read as follows "RFI - Records Management Program - (Name of your firm)". 3. Prominently label the package: "RFI - Records Management Program" and include the name of the primary contact for the respondent. Deliver the response to: an".,i",, J%""1 liilltn, "*.n4305 Santa Fe Avenue Vernon, CA 90058 Responses are due on or before 5:00 p.m. on _. Late responses will not be accepted. If you have any question about this RFI, please contact the Office of the City Clerk in wri ti ng at cityclerk@ci.vemon.ca.us. 1. 5. Page 4 of 6 B.Cover Letter. All responses shall include a cover letter. The cover letter shall identify the business entity, including the name, address and telephone number of the business entity; and the name, title, address and telephone number of a contact person during the evaluation period C. Introduction. Present an introduction of the proposal and your understanding of the assignment and significant steps, methods and procedures to be employed to ensure the development of records management program that will meet the needs and address the concems established in Section [V above. D. General Scope of Work. Briefly summarize the methodology and approach perceived or envisioned that address the concems established. E. Methodolory and Approach. Present concepts for conducting the work. Define the scope of each task including the depth and scope of analysis or research proposed. F. Fees and Cost. Although an important aspect of consideration, the financial cost estimate will not be the sole justification for consideration. However, an estimated cost to provide such a project will assist the City in developing a RFP for the final work and whether the work can be feasibly accomplished under the current fiscal year's budget. Proposer must offer services at a rate comparable to the rate proposer offers to other govemmental entities for similar work. G. Qualifications. Provide a detailed description of the proposer and his/her/its qualifications, including names, titles, detailed professional resumes and past experience in similar work efforts/products. Provide a list ofspecific related work projects that have been completed by the proposer which are directly related to the methodology and approach provided in the response. Respondents are encouraged to supply relevant examples oftheir professional product and provide a list of references. VI. Addenda" Chanses. and Amendments to this Solicitation. At any time prior to the due date for responses, the City may make changes, amendments, and addenda to this solicitation, including changing the date due to allow respondents time to address such changes. Addenda, changes, and amendments, if made, will be posted on the City's Page 5 of 6 website (www.cityofoernon.org), which is deerned adequate notice. A proposer may make a request to the Office of the City Clerk (cityclerk@ci.vemon.ca.us) to be placed on a list of persons to receive notice of any such addenda, changes, or amendments. !1I. Conditions for Responses to RFI The following conditions apply to this RFI process: A. Nothing contained in this RFI shall create any contractual relationship between the respondent and the City. B. This RFI does not obligate the City to establish a list ofservice providers qualified as prime consultants, or award a contract to any respondent. The City reserves the right to amend or cancel this RFI without prior notice, at any time, at its sole discretion. C. The City shall not be liable for any expenses incurred by any individual or organization in connection with this RFI. D. No conversations or agreements with any officer, agent, or employee of the City shall affect or modify any terms of this RFI. Oral communications or any written/e-mail materials provided by any person other than designated contact staff of City shall not be considered binding. E. The City reserves the right to seek clarification on a submission with any source. F. The dates, times, and sequence of events related to this RFI shall ultimately be determined by the City. G. Respondents shall not issue any news release pertaining to this RFI or to the City without prior written approval of the City. H. All information submitted in response to this RFI shall become public record upon delivery to the Offrce of the City Clerk. vII The City may, at its sole discretion and for any reason whatsoever, withdraw this solicitation at any time. Page 6 of 6 RECEIVED AUG 1 3 2015 CIIY CLERKS OIRCE RECEIVED AUS ' 2 20t5 CITY ADMINISTRATION DATE: TO: FROM: RE: STAFF REPORT VERNON GAS & ELECTRIC DEPARTMENT August 18, 2015 Honorable Mayor and City Council &<vr Carlos Fandino Jr., Director of Vernon Gas & Electric Department Originator: Ali Nour, Utilities Engineering Manager Request for Approval of Millennium, Inc. Products Optical Fiber Use Agreement No. 14 Recommendation A. Find that the Optical Fiber Use Agreement No. 14 with Millennium, Inc. is exempt under the Califomia Environmental Quality Act (CEQA) in accordarce with CEQA Guidelines Section 15301(b) which exempts minor extensions of utility services involving negligible or no expansion of use beyond that existing at the time of the lead agency's determination, and under Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment, because the proposal will not require any construction, and the only physical change to the environment is stringing a few hundred feet of fiber optic cabling (of roughly /, inch in diameter) from existing utility poles onto private prope(y; and B. Approve and authorize the execution of Optical Fiber Use Agreement No. 14 by and between the City of Vemon and Millennium Products, Inc. and the related Short Form IRU-14.1 Indefeasible Right of Use Agreement, in substantially the same form as submitted herewith, for the purpose of leasing unused fiber optic cable. Upon approval, construction for the implementation of an Optical Fiber Connection will commence. Background Vemon Gas & Electric Department owns and operates a fiber optic cabling system along the City's rights of way. The cabling system is primarily used for communication purposes throughout all city departments' infrastructure. The fiber optic cabling system has excess capacity. Starting in 2002, utd many times since then, the city has leased unused fiber optic cabling capacity to businesses with multiple locations in Vernon to allow them to communicate between their facilities. Page 1 of2 Millennium Products, Inc. has requested to enter into a similar lease arrangement. It wishes to interconnect its computer networks and telephone systems for two buildings within Vemon. Staff proposes to enter into a five-year term agreement. The terms, costs and fees, obligations and system specifications are comparable to agreements made with other businesses in the City, including Dutch, LLC, C. R. Laurence, Inc., Clougherty Packing, Huxtable's Kitchen, U.S. Growers, Inc. and Rose & Shore. Fiscal Impact As proposed, the customer would pay the City's full cost to connect the customer's system to the city's dark fiber network. Staff estimates the cost to be $1,700 in accordance with Section 6.1 of the IRU-14.1, Exhibit A of the Master Agreement. The work would involve stringing a few hundred feet offiber optic cabling (of roughly Yz inchin diameter) from existing utility poles to the customer, and then connecting the customer's system to the fiber optic cabling, as fully identified in the IRU-14.1 Schedule E. In addition, the Customer would be required to pay the city $ 22,800 during the initial term of the agreement for the use of the city's currently unused fiber. The price would increase based on adjustments to the Consumer Price Index in accordance with Section 6.5 of the IRU-14.1 of the Agreement. This price is calculated based on the City's investment in the fiber backbone infrastructure, the amount of system depreciation, the annual system maintenance cost, and related administrative expenses. The distance between the two points of connection, the number of strands, and the term ofthe contract also impact the monthly fee pricing. Attachment(s) l. Optical Fiber Use Agreement No. 14 by and between the City of Vemon and Millennium Products, Inc. Page 2 of 2 OPTICAL FIBER USE AGREEMENT No. 14 By and Between THE CITY OFVERNON and MILLENNIUM PRODUCTS, INC. TABLE OF CONTENTS EXHIBITA: EXHIBITB: Short Form IRU Agreements Trouble Reporting Procedure I OPTICAL FIBER USE AGREEMENT THIS OPTICAL FIBER USE AGREEMENT (hereinafter referred to as the ..Agreement,,) is made and entered into and executed in duplicate originals, either copy of which may be considered and used as the original hereof for all purposes as of the day of, 2015 ("Effective Date"), between CITY OF VERNON (hereinafter referred to as the 'CITY), having its oflices at 4305 Santa Fe Avenue, Vernon, California 90058, and MILLENNIUM PRODUCTS, INC. (hereinafter referred to as "CUSTOMER"), a California corporation, having an office at 4646 Hampton Street, Vernon, California 90058, and which are sometimes referred to individually as "Party" and collectively as "Parties." RECITALS WHEREAS, the CITY has an existing optical fiber cable system or "Cable System" (as hereinafter defined) throughout the City of Vemon, Califomia; and WHEREAS, the CITY has excess inactivated or dark fibers in the Cable System and is willing, from time to time, to provide such dark fibers to CUSTOMER and to grant CUSTOMER an Indefeasible Right of Use or IRU (as hereinafter defined) in and to such dark fibers for the purpose ofproviding voice, data, or video services; and WHEREAS, in connection with the grant to CUSTOMER of an IRU in and to such dark fibers, the CITY is willing to allow CUSTOMER to use certain other specified CITY-owned property, including, but not limited to, the CITY's Cable System; and WHEREAS, the CITY will provide fibers in the Cable System to CUSTOMER in connection with undertaking one or more projects; and WHEREAS, the Parties have agreed to enter into this Agreement which embodies the mutual covenants and agreements for the long term relationship between the Parties hereto and for each such project; and WHEREAS, the Parties have agreed to enter into separate Short Form IRU Agreement(s) as hereinafter defined. NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth in this Agreement, the Parties do hereby agree as follows: I. DEFINITIONS. 1.1 For the purposes of this Agreement and the Short Form IRU Agreements, the following terms, whether in the singular or in the plural, shall have the meaning specified below: a. Backbone: The physical location ofthe Cable System. b. Backbone Extension: A new addition to the Backbone that would benefit potential lessees and that the CITY will own and construct. In general, a Backbone Extension favels to a location that many other potential lessees also desire; it does not travel to a location that is solely used by the CUSTOMER, which constitutes a Service Drop. c. Cable Svstem: All hardware, including but not limited to, fiber cable, poles, pole attached hardware, conduit, innerduct, enclosures, building and facilities owned and operated by the CITY. d. Customer Infrastructure: Any conduit, fiber, premises, buildings, boxes, or other equipment or facilities belonging to CUSTOMER. e. Customer Svstem: The optical fiber strands, innerduct, conduit, and associated appurtenances, to be provided to CUSTOMER under the terms of this Agreement and the applicable Short Form IRU Ageement(s) and the associated rights to access such fiber strands at Demarcation Points as specified in the applicable Short Form IRU Agreement(s). f. Demarcation Points: The specific points where the Cable System connects to the Customer Infrastructure and ownership of such infrastructure changes. The Demarcation Points are marked by the City-fumished patch panels in each of the relevant Customer facilities. C. False Maintenance Call: A request by the CUSTOMER for maintenance with respect to the Customer System to which the CITY responds, where the CITY, in its reasonable discretion, later determines that the problem leading to the maintenance request resulted from deficiencies in the Customer Infrastructure, not the Cable System. h. Indefeasible Right of Use: The CUSTOMER's right to use a certain portion of the Cable System and Customer System pursuant to this Agreement and any Short Form IRU Agreements. i. Service Drop: An extension of the Cable System from the Backbone to a Demarcation Point in the Customer's Facilities, desired only by the CUSTOMER, paid for by the CUSTOMER, and used only by CUSTOMER. j. Short Form IRU Asreement: An agreement between the CITY and CUSTOMER which identifies the specific optical fiber strands and facilities to be provided to CUSTOMER and which sets forth the associated fees, terms and conditions for CUSTOMER'S use of such optical fiber strands and facilities. When executed, each Short Form IRU Agreement shall be attached hereto as Exhibit "A" and made a part hereof. k. Soecifications: The technical specifications described further in Section 4.2 of this Agreement. J l. Term: The duration of this Agreement as described further in Section 2 of this Agreement. 2.TERM. 2.1 Unless terminated sooner in accordance with the terms and conditions of this Agreement, the duration ofthis Agreement is five (5) years (hereinafter referred to as the "Term"), commencing on the date ofthis Agreement. The duration ofeach Short Form IRU Agreement, and any renewal or extension thereof, shall be set forth in the applicable Short Form IRU Agreement for each portion ofthe Customer System; provided, however, that in no event shall the term ofa Short Form IRU Agreement extend beyond the termination of this Agreement. Notwithstanding any provision in the Short Form IRU Agreement to the contrary, each Short Form IRU Agreement shall automatically, and without further notice or action required, terminate on the termination of this Agreement. If CUSTOMER has entered into more than one Short Form IRU Agreements, and despite the termination ofone or more, others remain in effect, and this Agreement remains in effect, then the Short Form IRU Agreements then in effect shall remain in effect until the earlier of their termination date or the termination ofthis Agreement. 3. TAXES. 3.1 The CITY shall be responsible for all taxes and fees based on the physical location of the Cable System and the construction thereof in, on, across, along or through public or private roads, highways or rights-of-way. 3.2 The CUSTOMER shall pay all local, state, and federal taxes, and franchise, license and permit fees (hereinafter collectively referred to as "Ta,xes") levied upon the sale, installation. use, construction, or provision ofa Service Drop aad the Customer System. The CUSTOMER shall also pay all Taxes levied upon the sale, installation, use, construction or provision of any equipment provided hereunder, as well as any Taxes assessed against it for the conduct of its business, during the Term of this Agreement. 4. MAINTENANCE AND CREDIT ALLOWANCE. 4.1 All scheduled and emergency maintenance to and repair of the Cable System or any facilities through which the Cable System passes, shall be performed by or under the direction ofthe CITY at CITY's sole cost, except as otherwise provided below in comection with services provided at CUSTOMER's request. If such work would materially impact the CUSTOMER's use of the Cable System or Customer System, the CITY shall provide CUSTOMER with reasonable notice of scheduled maintenance. 4.2 Except as otherwise provided in this Agreement or in a Short Form IRU Agreement, CUSTOMER is prohibited from performing any maintenance or repair on the Cable System or Customer System. CUSTOMER shall have the right to have an employee or representative available to assist the CITY in any maintenance or repair of the Customer System. The CITY shall maintain the Customer System substantially in accordance with the technical specifications (hereinafter referred to as the "Specifications") attached to and made a part ofthe Short Form IRU Agreement as its Schedule-D. 4.3 Emerqency Maintenance: The CITY shall use commercially reasonable efforts to respond to any unscheduled failure, intemrption or impairment in the operation of the Customer System within four (4) hours, measured from the time the CITY receives a report, pursuant to the procedures set forth in Exhibit B, ofany such unscheduled failure, intemrption or impairment until the time a qualified technician arrives at the site of the reported problem. The CITY shall use commercially reasonable efforts to perform emergency maintenance and repair to correct any unscheduled failure, intemrption or impairment in the operation of the Customer System when reported by CUSTOMER in accordance with the procedures set forth in Exhibit "8" attached hereto and made a part hereof. 4.4 Scheduled Maintenance. 4.4.1 CITY's Ootion. The CITY from time to time may schedule and perform periodic maintenance to the Cable System or Customer System, including work to maintain dark fibers within Specification, at CITY's sole cost. If scheduled maintenance ofthe Cable System or Customer System is expected to result in any intemrption of the Customer System, the CITY shall so notifr CUSTOMER in writing at least three (3) business days prior to commencing such routine maintenance. The CITY shall schedule major maintenance of the Cable System at a time selected by the CITY to generally limit adverse user impacts. 4.4.2 CUSTOMER's Request. The CITY will perform changes or modifications to the Customer System at CUSTOMER'S request. CUSTOMER may also request scheduled maintenance by delivering to the CITY a statement of work detailing the service CUSTOMER desires to have performed, including a proposed time schedule for such services. Upon receipt of such statement of work, the CITY will provide an estimate of the price and timing of such scheduled maintenance. Following CUSTOMER's acceptance of such estimate and time schedule, the CITY will schedule and perform such scheduled maintenance. The CITY will perform CUSTOMER- requested scheduled maintenance on a time-and-materials basis at the standard CITY rates in effect at the time services are performed. CITY rates in effect will be those identified in Schedule-A of the most recent Short Form IRU Agreement, as adjusted by the City. The adjustment in rates shall be in the discretion ofthe City, but shall not exceed the cumulative increase in the CPI-U for the Los Angeles-fuverside-Orange County, CA area between the effective date ofthe Short Form IRU Agreement and the date of adj ustment. 4.5 CUSTOMER is responsible for all maintenance and repairs on CUSTOMER's side of the Demarcation Points. 5 4.6 Access to CUSTOMER's properfv and Customer System. CUSTOMER agrees to provide CITY, its officers, employees, agents, representatives, and contractors access to Customer's Infrastructure and CUSTOMER's property when reasonably necessary for repairs to the Customer System and the Cable System. Except in the case of an emergency, CITY shall provide CUSTOMER with forty-eight (48) hours advanced notice ofany required access to Customer's Infrastructure and the parties shall select a mutually agreeable time for CITY's access within that timeframe. 4.7 Credit Allowance. In the event of Total Service Intemrption as defined in the Short Form IRU Agreement, CUSTOMER shall be entitled to the Credit Allowance described in the applicable Short Form IRU Agreement. 5. FREEDOMOFACTION. Nothing in this Agreement shall restrict either party's right to conduct its business and in the CITY's case, it may, without limitation, construct and install additional optical fiber cable systems for any purpose whatsoever, and it may enter into other Optical Fiber Use Agreements with any other party on any other terms acceptable to the CITY in its sole and absolute discretion. 6. COMPLIANCE WITH LAWS. CUSTOMER, at its sole cost, shall comply with all applicable federal, state, and local laws, ordinances and regulations pertaining to this Agreement, the use ofthe Cable System, and the use of the Customer System. CUSTOMER acknowledges that any products, software and technical information provided under this Agreement are subject to U.S. export laws and regulations and any use or transfer ofsuch products, software and technical information must be authorized under those regulations. CUSTOMER agrees that it will not use, distribute, transfer or transmit the products, software or technical information, except in compliance with U.S. export regulations. 7. RELOCATION OF THE FACILITIES. CUSTOMER recognizes that, fiom time to time, the CITY may elect or be required to relocate all or a portion ofthe Cable System or the Customer System, or both. As between the CITY and the CUSTOMER, the CITY shall be solely responsible for all costs incurred in relocating the Cable System and the Customer System (unless the relocation is accompanied by additions or other work to benefit CUSTOMER pursuant to a CUSTOMER request). The CITY shall use commercially reasonable efforts to do so in a manner that is intended to minimize intemrption in CUSTOMER'S use thereof; provided, however, that the CITY shall have the sole right to determine the extent and timing of and the methods to be used for such relocation. Unless the circumstances make such notice impractical, the CITY shall give CUSTOMER at least thirty (30) days prior written notice ofany scheduled relocation plans, and as much notice as reasonably practicable of any other relocation. 6 8. CUSTOMERCOVENANTS. 8.1 CUSTOMER shall not interfere in any manner with the existence and operation ofany and all public and private rights-of-way, sanitary sewers, water mains, storm drains, gas mains, poles, aerial and underground electric and telephone wires, electrifiers, cable television, and other telecommunications, utility, and municipal property without the express written approval of the owner or owners ofthe affected property or properties. CUSTOMER shall not do or permit anlthing to be done by anyone under its direct control or doing work on its behalf: (i) within the public right-of- way; (ii) that would in any way obstruct or interfere with the rights of, or injure, any person located within the public right-of-way, or (iii) use the public right-of-way for any improper or unlawfirl purpose. Notwithstanding the foregoing, this shall not be construed to prohibit CUSTOMER fiom installing infrastructure in the public right-of-way with the prior written consent of the CITY in accordance with this Agreement. 8.2 CUSTOMER shall keep all parts of the Customer System free of any liens that may be created or which may attach as the result of the acts or omissions of CUSTOMER, its employees, subcontractors or agents. If any such lien is filed, CUSTOMER shall indemniff and hold harmless CITY from any and all costs to remove such lien including but not limited to reasonable attomeys' fees. 8.3 CUSTOMER shall not be permitted to pledge its rights under this Agreement as an asset for purposes ofobtaining financing without the prior wriuen consent of the CITY. The CITY reserves the right to impose conditions on such consent, including, without limitation, the requirement that the entity to whom this Agreement would be pledged comply with the provisions of Section I 5 ("Assignment"). CUSTOMER may not, under any circumstances, pledge the actual dark fiber or Customer System as an asset to anyone for any purpose. The Customer System is public property owned by the CITY and shall not be pledged to any party. 8.4 CUSTOMER shall not, in connection with its use of the Customer System, commit, cause, maintain or permit, nor suffer or allow to be committed, caused, maintained or permitted by anyone under its direct control or doing work on its behalf, any waste, abuse or destructive use within the public righfof-way, nor any public or private nuisance, nor any other act or thing which may disturb the quiet enjoyment ofany other person latfully using the public right-of-way. 8.5 CUSTOMER shall be solely and fully responsible for the repo ng of all hazardous materials releases to the appropriate agencies, when such releases are caused by, or result from, CUSTOMER's activities or those of anyone under its direct control or doing work on its behalf. CUSTOMER shall take all necessary precautions to prevent any hazardous materials used by CUSTOMER or by anyone under its direct control or doing work on its behalf from entering into any storm or sewage drain system or from being released within the public right-of-way. 7 9. EVENTS OF TERMINATION AND EFFECT OF TERMINATION, 9.1 Termination by CITY or CUSTOMER. a. Condemnation. If all or any significant portion of the Cable System or the Customer System shall be taken for any public or quasi-public purpose by any lawful power or authority by the exercise ofthe right ofcondemnation or eminent domain, either Party may elect, by at least 30 days' prior written notice to the other Party, to terminate the affected Short Form IRU Agreement (and this Agreement if all Short Form IRU Agreements are affected) upon the effective date ofthe taking. b. Damage or Destruction. If either Party gives notice to the other that the Cable System or the Customer System has been substantially damaged or destroyed by force majeure (an outside force beyond either Party's control), and the Cable System or the Customer System is not repaired within 30 days following receipt of such notice, this Agreement shall terminate on the last day of the 30 day cure period. c. Bankruptcv. If CUSTOMER or the CITY, as the case may be, shall file a petition in bankruptcy or for reorganization or for an arrangement pursuant to any present or future federal or state bankruptcy law or under any similar federal or state law, or shall be adjudicated as bankrupt or insolvent, or shall make a general assignment for the benefit of its creditors, or shall admit in writing its inability to pay its debts generally as they become due, or ifany involuntary petition proposing the adjudication of CUSTOMER or the CITY, as the case may be, as a bankrupt or its reorganization under any present or future federal or state ban-kruptcy law or any similar federal or state law shall be filed in any court and such petition shall not be discharged or denied within ninety (90) days after the filing thereof, or ifa receiver, trustee or liquidator of CUSTOMER or the CITY, as the case may be, of all or substantially all of the assets of CUSTOMER or the CITY, as the case may be, and shall consent to or acquiesce in such appointment, then the other Party hereto may, at its sole option, immediately terminate this Agreement, with termination to be effective upon delivery of written notice of termination. 9.2 Termination by CITY. 9.2.1 Default bv CUSTOMER. If CUSTOMER has failed to pay any costs due hereunder or is otherwise in breach of any provision of this Agreement, and such breach is not cured within the time periods described in Section 13.1 below, CITY may terminate this Agreement effective as of the last day of the required notice period. 9.2.2 Need bv CITY. Notwithstanding any provision contained in this Agreement to the contrary, the CITY shall have the right to terminate any Short Form IRU Agreement upon three (3) months written notice to CUSTOMER if the Customer System provided by such Short Form IRU Agreement is needed in connection with the CITY's telecommunications needs related to CITY business. At the time of such notice of termination, the CITY shall waive the remaining annual payment of the Sho( Form IRU Agreement that the CITY elects to terminate. If the CITY terminates, it will use commercially reasonable efforts to relocate the Customer System or any segment under the affected Short Form IRU Agreement, and ifa mutually satisfactory relocation reroute can be identified, CUSTOMER and CITY shall enter into a new Short Form IRU Agreement. Ifa mutually satisfactory relocation reroute cannor be identified, this Agreement shall be terminated, CUSTOMER shall not incur a Termination Settlement Charge and CUSTOMER's remaining financial obligations hereunder shall be discharged. CUSTOMER shall only be responsible for fees incurred through the last day ofservice, and shall receive a pro-rata refund ofany pre-paid but unused fees. 9.3 Termination bv CUSTOMER. 9.3.1 Relocation. Ifthe CITY has exercised its relocation rights in accordance with Section 7, and within l5 days after the relocation, CUSTOMER delivers to the CITY written notice that the Customer System or affected portion thereofhas not been relocated in a marmer that allows for appropriate use by CUSTOMER, and services are not restored within 3 days of the date of CUSTOMER'S notice, CUSTOMER may terminate the applicable Short Form IRU Agreement effective as ofthe last day of the 3 day period. Following such a termination, CUSTOMER shall not incur a Termination Settlement Charge and CUSTOMER's remaining financial obligations thereunder shall be discharged. CUSTOMER shall only be responsible for fees incuned through the last day ofservice, and shall receive a pro-rata refund ofany pre-paid but unused fees. 9.3.2 Failure to Meet Specifi cations/Non-Acceptance. i) If at any time following the completion and acceptance of the acceptance test, as described in Section 27, for a specific Short Form IRU Agreement, CUSTOMER delivers notice to the CITY that specifically identifies the Specifrcations with which CUSTOMER contends that the portion of the Cable System utilized in the Short Form IRU Agreement does not conform and demonstrates to the CITY's satisfaction that such portion ofthe Cable System fails to perform in accordance with the Specifications set forth in Schedule-D ofthe affected Short Form IRU Agreement, and the CITY does not restore the affected portion of the Cable System to the required Specifications within 90 days after receipt of notice, then the CUSTOMER has the right to terminate the affected Short Form IRU Agreement(s) by notice delivered within l5 days following the last day of the 90 day period. CUSTOMER shall not incur a Termination Settlement Charge and CUSTOMER's remaining financial obligations thereunder shall be discharged. CUSTOMER shall only be responsible for fees incurred through the last day ofservice, and shall receive a pro-rala refund ofany pre-paid but unused fees. ii) If CUSTOMER delivers notice to the CITY within seven (7) days of completion of the acceptance test described in Section 27 that specifically identifies a nonconformity with the acceptance testing plan and demonstrates to the CITY's satisfaction such nonconformity, and the CITY does not cure such nonconformity within 90 days after receipt of notice, then the CUSTOMER has the right to terminate the affected Short Form IRU Agreement by notice delivered within l5 days following the last day of the 90 day period. Following such a termination, CUSTOMER shall not incur a Termination Settlement Charge and CUSTOMER's remaining financial obligations thereunder shall be discharged. CUSTOMER shall only be responsible for fees incurred 9 through the last day ofservice, and shall receive a pro-rata refund ofany pre-paid but unused fees. iii) No Credit Allowance shall be provided in the event of failure to conform to the acceptance testing plan, and no Credit Allowance shall be provided in the event of failure to meet Specifications following the completion of the acceptance testing plan unless the failure to meet Specifications results in Continued Total Service Intemtptions as defined in Section 9.3.4 below, in which case the terms of Section 9.3.4 and Section 4.7 shall control. 9.3.3 CUSTOMER Sole Discretion. CUSTOMER shall have the option, in its sole discretion and for any reason, to terminate this Agreement or any Short Form IRU Agreement upon three (3) months prior written notice to the CITY, subject to payment of the Termination Settlement Charges defined below in Section 9.4.4. 9.3.4 Continued Total Service Intemrptions. If there shall occur, within any period of 12 consecutive months, five Total Service Intemrptions, as that term is defined in the Short Form IRU Agreement ("Continued Total Service Intemrptions") caused by factors within the CITY's reasonable control, CUSTOMER may, upon the occurrence of the fifth Total Service Intemrption that is within the CITY's reasonable control, immediately terminate the Short Form IRU Agreement affected by the Continued Total Service Intemrptions. Following such a termination, CUSTOMER shall not incur a Termination Settlement Charge and CUSTOMER's remaining financial obligations thereunder shall be discharged. CUSTOMER shall only be responsible for fees incurred through the last day of service, and shall receive a pro-rata refund ofany pre-paid but unused fees. 9.3.5 Default by Citv. If the CITY is in breach of any provision of this Agreement for a reason other than as described in this Section 9.3 above, and such breach is not cured within the time periods described in Section 13.2 below, CUSTOMER may terminate this Agreement and all Short Form IRU Agreements then in effect, effective as ofthe first day following the cure period. Following such a termination, CUSTOMER shall not incur a Termination Settlement Charge and CUSTOMER's remaining financial obligations thereunder shall be discharged. CUSTOMER shall only be responsible for fees incurred through the last day ofservice, and shall receive a pro-rata refund ofany pre-paid but unused fees. 9.4 Rights uoon Termination. 9.4.1 If this Agreement or any Short Form IRU Agreement is terminated by either Party in accordance with the terms of Section 9.1 or 9.2.2, CUSTOMER shall pay all required sums under each Sho( Form IRU Agreement and all applicable Taxes through the effective date of the termination. This right of termination shall be the CUSTOMER's sole and exclusive remedy in the event of a termination pursuant to Section 9.1 or Section 9.2.2. 9.4.2 If this Agreement is terminated by the CITY in accordance with the terms of Section 9.2.1, CUSTOMER shall pay all required sums under each Short 10 Form IRU Agreement and all applicable Taxes through the last day of each Short Form IRU Agreement then in effect, and shall be liable for any damages from uncured breaches. 9.4.3 If this Agreement is terminated by CUSTOMER in accordance with the terms of Section 9.3.1,9.3.2(1),9.3.4, or 9.3.5, CUSTOMER shall pay all required sums under each Short Form IRU Agreement and all applicable Taxes through the effective date of the termination. If this Agreement is terminated by CUSTOMER in accordance with the terms of Section 9.3.2(lt), no fees shall be due or payable by CUSTOMER. This right of termination shall be CUSTOMER's sole and exclusive remedy in the event of a termination pursuant to Section 9.3.1, 9.3.2(i),9.3.2(ii), 9.3.4, and 9.3.5, except that any Credit Allowances eamed pursuant to clause 4.7 shall be applicable to fees owed by CUSTOMER. 9.4.4 If this Agreement is terminated by CUSTOMER in accordance with the terms of Section 9.3.3, the annual payments shall be recalculated to reflect the termination date and, therefore, the new Term of the Agreement. The recalculated annual payments shall use the appropriate discount or premium and shall be retroactive to all CUSTOMER payments from commencement to the termination of each Sho( Form IRU Agreement. The cumulated difference between the annual payments made by the CUSTOMER to the CITY under the CUSTOMER's originally selected Term of the Agreement (including any discounts) and the recalculated payments applicable for the effective Term ofthe Agreement shall hereinafter be known as "Termination Adjustment Charge" or "TAC". The TAC shall be included in the "Termination Settlement Charges" or "TSC", as defined in 9.4.5 below. 9.4.5 Furthermore, in the event CUSTOMER elects to terminate any Short Form IRU Agreement under the terms ofthe provisions of Section 9.3.3, a termination charge of half the remaining payments due if the Short Form IRU Agreement were to reach its full Term shall apply as part ofthe TSC. The TSC shall be calculated as follows: TSC : TAC + % multiplied by the remaining payments due under original Short Form IRU Agreement. 9.4.6 CITY shall transfer the ownership of the demarcation patch panels at the end of the Term. The CITY shall remove the Customer System from the Cable System by physically removing optical fiber cables from the splicing enclosure on public rights-of-way to the Demarcation Point, leaving the patch panel in place at CUSTOMER's request. 10. ADMINISTRATION OF THIS AGREEMENT. 10.1 Each party shall designate a representative who is authorized to act on the respective Party's behalf with respect to those matters delegated to the authorized representatives. The CITY's representative shall be Ali Nour, or such other person designated in writing by the City Administrator. CUSTOMER shall advise CITY of its designated representative by providing written notice to the CITY within thirty (30) days ofthe Effective Date ofthis Ageement. Each Party shall have the right to designate altemate representatives and to change its representative or altemate by written notice to the other Party. ll 10.2 The authorized representatives shall have the following responsibilities, among others: Agreement a. Perform those functions and duties assigned to them in this b. Review and attempt to resolve any disputes between the Parties arising under this Agreement. c. Arrange for the development and completion of procedures to implement the provisions of this Agreement. 10.3 Any expenses incurred by the authorized representative in connection with his,4rer duties shall be paid by the Party he/she represents. 10.4 The authorized representative shall have no authority to modify this Agreement. 11. INDEMNIFICATION AND LIMITATION OF LIABILITY. 11.1 CUSTOMER shall indemni$, defend and hold harmless the CITY, the Gas & Electric Department, the City Council of the CITY, and all of the CITY's boards, elected officials, agents, representatives, employees, assigns, and successors in interest (collectively, the "lndemnified Parties") from and against any and all suits and causes of action, claims, charges (including, without limitation, all costs ofdefense, such as reasonable attomeys' fees and cost, costs of witnesses and professional analysts), damages, demands, judgments, civil fines and penalties, or losses ofany kind or nature whatsoever, arising out of or in connection with CUSTOMER's use of the Cable System or Customer System, including, but not limited to: (a) claims arising from any failure, breakdown, intemrption or deterioration of the Cable System or service components provided by the CITY to CUSTOMER or service provided by CUSTOMER to third parties; and (b) claims of patent infringement arising from combining or using services or equipment fumished by CUSTOMER in connection with services or equipment fumished by others; and (c) death, bodily injury, or personal injury to any person or damage or destruction to any property, except to the extent such damage or injury is due to the gross negligence or willful misconduct of any of the Indemnified Parties. I 1.2 Except for the Credit Allowance for Total Service Intemrptions, as described in the Short Form IRU Agreement, the liability of the CITY associated with the installation, provision, use, maintenaace, repair, termination or restoration of the Cable System provided pursuant to this Agreement shall not exceed an amount equal to the prorated portion of charges for the affected Short Form IRU Agreement for the period during which that Short Form IRU Agreement was affected. 11.3 Notwithstanding any provision of this Agreement or any Short Form IRU Agreement to the contrary, IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY FOR ANY INDIRECT, SPECIAL, INCIDENTAL, 12 PUNITIVE OR CONSEQUENTIAL DAMAGES, (INCLUDING, BUT NOT LIMITED TO, ANY CLAIM FOR LOSS OF SERVICES), WHETHER FORESEEABLE OR NOT, ARISING OUT OF, OR IN CONNECTION WITH, TRANSMISSION INTERRUPTIONS OR PROBLEMS, INCLUDING, BUT NOT LIMITED TO, DAMAGE OR LOSS OF PROPERTY OR EQUIPMENT, LOSS OF PROFITS OR REVENUE, COST OF CAPITAL, COST OF REPLACEMENT SERVICES, OR CLAIMS OF CUSTOMERS, WHETHER OCCASIONED BY ANY REPAIR OR MAINTENANCE PERFORMED BY, OR FAILED TO BE PERFORMED BY, A PARTY OR ANY OTHER CAUSE WHATSOEVER, INCLUDING, WITHOUT LIMITATION, BREACH OF CONTRACT, BREACH OF WARRANTY, NEGLIGENCE OR STzuCT LIABILITY. CUSTOMER shall include in any agreement with any third party relating to the use of the Cable System or the Customer System a waiver (using the above language) by such third party ofany claim for indirect, special, incidental, punitive or consequential damages (including, but not limited to, any claim from any customer for loss of services). The Parties' respective obligations to include such a provision waiving indirect, special, punitive, or consequential damages in any agreement with any third party shall be subject to any and all regulatory or other legal limitations, as well as applicable tariffs. 12. CONFIDENTIALITY. 12.1 Confidential Status; Disclosure of Information. All data, floor plans, designs, maps, surveys, drawings, models, reports, logs, documents, materials or other information developed or created by CUSTOMER, received by CUSTOMER, or provided to CUSTOMER in connection with this Agreement ("Confidential Information") are deemed confidential and shall not be disclosed by CUSTOMER to any third party without CITY's prior written consent. CITY shall grant consent if disclosure is legally required. All Confidential Information shall be retumed to CITY upon the termination of this Agreement. CUSTOMER's covenant under this section shall survive the termination of this Agreement. CITY may disclose to third parties any Confidential Information at its sole discretion. 12.2 CUSTOMER'S obligation not to disclose any Confidential Information shall not extend to information that: 12.2.1 Was in the possession of, or was rightfully known by, the CUSTOMER without an obligation to maintain its confidentiality prior to receipt from CITY; 12.2.2Is or becomes generally known to the public without violation of this Agreement; 12.2.3 Is obtained without an obligation of confidentiality by the CUSTOMER in good faith from a third party having the right to disclose it without an obligation of confidentiality; or 12.2.4 lnformation which is required to be disclosed pursuant to any court order or directive having the force of law. l3 12.3 The provisions of this section shall survive the termination of this Agreement. 13. DEFAULT. l3.l CUSTOMER shall not be in default under this Agreement or in breach of any provision hereof unless and until the CITY shall have given CUSTOMER written notice of a breach and CUSTOMER shall have failed to cure the same within thirty (30) days after receipt ofa notice, other than any default in payment which must be cured within ten (10) days after receipt ofa notice; provided, however, that where such non-monetary breach cannot reasonably be cured within such thirty (30) day period, if CUSTOMER shall commence to cure the same within the thirty (30) day period and to prosecute such cure with due diligence, the time for curing such breach shall be extended for a reasonable period of time to complete such cure. Upon the failure by CUSTOMER to timely cure any such breach after notice thereof from the CITY, the CITY shall have the right to take such action as it may determine, in its sole discretion, to be necessary to cure the breach or terminate this Agreement or pursue such other remedies as may be provided by law or in equity. 13.2 The CITY shall not be in default under this Agreement or in breach ofany provision hereof unless and until CUSTOMER shall have given the CITY written notice of such breach and the CITY shall have failed to cure the same within thirry (30) days after receipt of such notice; provided, however, that where such breach cannot reasonably be cured within such thirty (30) day period, if the CITY shall commence to cure the same within the thirty (30) day period and to prosecute such cure with due diligence, the time for curing such breach shall be extended for a reasonable period of time to complete such cure; and provided further that if the breach is one described in Section 9.3.1, 9.3.2, or 9.3.4, the time period for cure shall be as specified in such Paragraph. Upon the failure by the CITY to timely cure any such breach after applicable notice thereof from CUSTOMER (as described in Section 9.3 and herein), CUSTOMER shall have the right to terminate this Agreement or the affected Short Form IRU Agreement. Following such a termination, CUSTOMER shall not incur a Termination Settlement Charge and CUSTOMER's remaining financial obligations thereunder shall be discharged. CUSTOMER shall only be responsible for fees incurred through the last day of service, and shall receive a pro-rata refund ofany pre-paid but unused fees. 14. FORCEMAJEURE. Neither Party shall be considered to be in default in any of its obligations under this Agreement when a failure ofperformance shall be due to an uncontrollable force. The terms "uncontrollable force" shall mean any cause beyond the control ofthe party affected, including, but not restricred to, flood, earthquake, storrn, fire, lightening, epidemic, war, riot, civil disturbance or disobedience, labor dispute, labor material shortage, sabotage, federal, state, or municipal action, statute, ordinance, or regulation, embargoes of the United States Govemment or any other govemment, which by exercise ofdue diligence such Party could not reasonably have been expected to avoid and by exercise ofdue diligence has been unable to overcome. Either Party rendered unable to fulfill any of its obligations under this Agreement by reason ofan 14 uncontrollable force, shall give written notice within five (5) business days ofsuch fact to the other Party and shall exercise due diligence to perform its obligations upon the removal or termination ofthe uncontrollable force. If the Force Majeure event continues for a period of thirty (30) days, either party shall have the right to terminate this Agreement and any applicable Short Form IRU Agreements with immediate effect. Following such a termination, CUSTOMER shall not incur a TSC and CUSTOMER's remaining financial obligations thereunder shall be discharged. CUSTOMER shall only be responsible for fees incurred through the last day ofservice, and shall receive a pro- rata refund of any pre-paid but unused fees. I5. ASSIGNMENT. 15.1 This Agreement shall be binding upon and inure to the benefit ofthe parties hereto and their respective successors or assigns; provided, however, that no assignment hereofor sublease, assignment or licensing (hereinafter collectively referred to as a "Transfer") ofany rights or obligations hereunder shall be valid for any purpose without the prior written consent of each Pfity hereto. 15.2 In the event ofany assignment or Transfer by either Party undertaken pursuant to Section 15. I herein, the assigning or translerring Party shall remain liable for all its obligations under this Agreement, unless: (a) the other Party consents to release by written instrument, the assigning or transferring Party from such obligations, and (b) the assigrree or transferee shall have affirmatively assumed in writing all of the obligations of the assigning or transferring Party under this Agreement. 16. SUBCONTRACTING BY CITY. GITY may subcontract any or all of the maintenance, emergency or construction services required of it under this Agreement, provided that CITY shall require the subcontractor(s) to perform in accordance with the requirements and procedures set forth herein and provided that CITY hereby agrees to assume the obligations as CITY has undertaken for itself. The use of any such subcontractor shall not relieve CITY of any of its obligations hereunder. 17. WAIVER. Any waiver at any time by either Party of its rights with respect to a default under this Agreement, or with respect to any other matter arising in connection with this Agreement, shall not be deemed a waiver with respect to a subsequent default or other matter. 18. RELATIONSHIP NOT A PARTNERSHIP OR AN AGENCY. Except where specifically stated in this Agreement to be otherwise, the duties, obligations, and liabilities of the Parties are intended to be several and notjoint or collective. Nothing contained in this Agreement shall be construed to create an association, trust, partnership, orjoint venture or impose a trust or partnership duty, obligation, or liability on or with regard to either Pa(y. Each Party shall be individually t5 and severally liable for its own obligations under this Agreement. 19. NO THIRD.PARTY BENEFICIARIES. This Agreement shall not be construed to create rights in, or to grant remedies to, any third party as a beneficiary to this Agreement or ofany duty, obligation or undertaking established herein. 20. NOTICES. Any written notice under this agreement shall be deemed properly given ifsent by registered or certified mail, postage prepaid, return receipt requested, or by nationally recognized ovemight delivery service to the address specified below, unless otherwise provided for in this Agreement. Notices shall be deemed given upon receipt or refusal to accept receipt ifsent by U.S. mail, messenger, or ovemight delivery service. CITY: City of Vemon Attn: Ali R. Nour, P.E. Utilities Engineering Manager 4305 Santa Fe Avenue Vemon, CA 90058-0805 CUSTOMER: MILLENNIUM PRODUCTS, INC. Attn: Tim Martin Title: Director of IT 4646 Hampton Street Vemon. CA 90058 21. ARBITRATION AND VENUE Any dispute, claim or controversy arising out ofor relating to this Agreement or the breach, termination, enforcement, interpretation or validity thereof, including the determination ofthe scope or applicability of this Agreement or arbitrate, shall be determined by arbitration in Los Angeles, Califomia. The arbitration shall be administered by JAMS pursuant to its Streamlined Arbitration Rules and Procedures. The arbitrator shall be a retired judge well-versed in matters of commercial litigation. All decisions ofthe arbitrator shall be in writing, and the arbitrator shall provide written reasons for their decision. The arbitration decision shall be final and blnding on the Parties. Judgment on the award may be entered in any court having jurisdiction pursuant to this Agreement. Notwithstanding the foregoing, the parties shall be permitted to access the court system to enforce any arbitration award. The exclusive jurisdiction and venue under this Agreement shall be the Superior Court of Califomi4 Los Angeles County. 16 22. NO WARRANTIES. THE CITY MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IjNDER THIS AGREEMENT AND SPECIFICALLY DISCLAIMS ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. The CITY does not warrant that the services will be unintemrpted or error-free, or that the services will meet the CUSTOMER's requirements or that the services will prevent unauthorized access by third parties. 23. USEOFTHECUSTOMERSYSTEM. CUSTOMER shall have exclusive control over and responsibility for the installation, enabling, configuration, operation and monitoring ofvoice, dat4 and./or other video services across the Customer System, including, without limitation, CUSTOMER premise and nodal electronics, and any other electronics, hardware or software on the CUSTOMER's side of the Demarcation Points. 24. PLURALS. In construction of this Agreement, words used in the singular shall include the plural and the plural the singular, and./or is used in the inclusive sense, in all cases where such meanings would be appropriate. 25. PARTSOFAGREEMENT. All Short Form IRU Agreements, attachments, exhibits and appendices attached hereto shall be deemed a part of this Agreement, and shall have full force and effect. Short Form IRU Agreements shall be identified and named with a numeric designator for administrative pu4)oses, and each Short Form IRU Agreement shall be attached chronologically as part of Exhibit "A" to this Agreement and thereby made a part of this Agreement. 26. COLINTERPARTS. This Agreement may be executed in any number of counterparts, each and all of which shall be deemed for all purposes to be one agreement. However, this Agreement shall not become effective unless and until all Parties hereto have executed either the original or a counterpart ofthe Agreement. 27, ACCEPTANCETESTING. The CITY will submit an acceptarce testing plan to CUSTOMER for approval within thirty (30) days following the mutual execution of any Short Form IRU Agreement. CUSTOMER will review and provide comments within twenty (20) days of its receipt of the acceptance testing plan, and CUSTOMER's failure to provide comments within such twenty (20) day period shall be deemed to be CUSTOMER's approval of the CITY's acceptance testing plan. If CUSTOMER provides comments to the CITy's proposed acceptance plan within the twenty (20) day period, the CITY and CUSTOMER will use good faith efforts to agree to the terms ofa mutually acceptable acceptance plan within thirty (30) days following the CITY's receipt of the CUSTOMER's comments, 17 such final acceptance testing plan to include non-destructive attenuation tests and optical time domain reflectometer tests on each segment. If the Parties fail to reach agreement on the terms of an acceptance testing plan within such thirty (30) day period, then the Short Form IRU Agreement that is the subject ofthe acceptance test plan that is in dispute shall be terminated, and neither Party shall have any further obligation or liability to the other. If the Parties reach agreement on the acceptance testing plan, then CUSTOMER shall deliver to the CITY written notice of disapproval of any aspect of the Cable System that does not conform to the requirements set forth in the final acceptance testing plan within seven (7) days of completion of the acceptance test. CUSTOMER,s failure to deliver such notice ofdisapproval within such seven (7) day period shall be deemed acceptance of the Cable System in conformity with the acceptance testing plan. If CUSTOMER delivers notice of nonconformity with the acceptance testing plan, the terms of Section 9.3.2(ii) and the remedies described in Section 9.4.3 above shall apply. 28. BILLING AND PAYMENT. 28.1 The CITY shall invoice CUSTOMER for all fees and charges hereunder as determined by the Short Form IRU Agreement(s) and this Agreement as follows: a. CITY shall invoice CUSTOMER on a quarterly basis pursuant to the terms of the appropriate Short Form IRU Agreement. If CUSTOMER requests additional connections, disconnections or other services, CITY shall invoice CUSTOMER within 30 days of completing such requested service. b. CUSTOMER shall submit payment in full within thirty (30) days after receipt of the CITY's invoice. 29. TITLE. CUSTOMER agrees that all right, title, and interest in the Cable System and the Customer System provided by the CITY hereunder and as specified in the Short Form IRU Agreement shall at all times remain exclusively with the CITY. The CITY agrees that all right, title and interest in the Customer Infrastructure shall at all times remain exclusively with CUSTOMER. The CITY acknowledges that CUSTOMER has contracted for the indefeasible right to use the Customer System at the time CUSTOMER executes each Short Form IRU Agreement and agrees that it will not take any action which shall be inconsistent with CUSTOMER's IRU interest. 30. ENTIREAGREEMENT. This Agreement constitutes the complete and final expression of the agleement of the Parties and is intended as a complete and exclusive statement of the terms of their agreement and supersedes all prior and contemporaneous offers, promises, representations, negotiations, discussions, communications and agreements which may have been made in connection with the subject maner hereof. CUSTOMER represents that in entering into this Agreement it has not relied on any previous representations or understandings ofany kind or nature. 18 31. SURVIVAL OF TERMS. Notwithstanding anything to the contrary set forth in this Agreement or the Sho( Form IRU Agreement, no termination of this Agreement or any Short Form IRU Agreement shall affect the rights or obligations ofany Party hereto with respect to any payment hereunder for services rendered prior to the date of termination and the terms of Sections 9, 11,21,22,29, and 30 shall survive the termination of this Agreement. 32. AMENDMENT. This Agreement may not be amended except pursuant to a written instrument signed by each of the Parties. 33. CONFLICTING TERMS. In case ofconflict between this Agreement and any Short Form IRU Agreement, the terms and conditions of this Agreement shall control. 34. HEADINGS. Section headings used in this Agreement are for convenience ofreference only and shall not affect the interpretation or construction ofthe Agreement. 35. SEVERABILITY. Ifany portion ofthis Agreement shall be held by a court of competent jurisdiction to be invalid, void, or otherwise unenforceable, the remaining provisions shall remain enforceable to the fullest extent permitted by law. Furthermore, to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of this Agreement containing any provision held to be invalid, void or otherwise unenforceable that is not itself invalid, void or enforceable) shall be construed so as to give effect to the intent manifested by the provision held invalid, void, or unenforceable. [Signatures begin on the next page] 19 IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by their respective duly authorized representatives as of the day and year first above written. CITY OF VERNON By: W. Michael McCormick, Mayor ATTEST: Maria E. Ayala, City Clerk APPROVED AS TO FORM: Brian Byun, Deputy City Attomey CUSTOMER Print Name: Title: 20 EXHIBIT *A' ALL SHORT FORM IRU AGREEMENT rRU-14.1 EXHIBIT "A" SHORT FORM IRU-I4.1 Indefeasible Right of Use Agreement THIS SHORT FORM IRU.I4.I INDEFEASIBLE RIGHT OF USE AGREEMENT (herein referred to as "IRU-14.1 Agreement") is made, entered into and executed in duplicate originals, either copy of which may be considered as the original hereof for all purposes, as of this _ day of 2015 (the "Effective Date"), between the CITY OF !'ERNON (hereinafter refened to as the "CITY") having its offices at 4305 Santa Fe Avenue, Vemon, Califomia 90058, and MILLENNIUM PRODUCTS, INC. (hereinafter referred to as "CUSTOMER"), a Califomia corporation with offices at 4646 Hampton Street, Vemon, California 90058, which are sometimes referred to individually as "Party" and collectively as "Parties." Upon execution, this IRU-14.1 Agreement shall become a part of the master agreement entitled Optical Fiber Use Agreement ("Agreement") dated 2015. Each term used in this IRU- 14.1 Agreement not defrned herein shall have the meaning ascribed to such term in the Agreement. All of the terms and conditions of the Agreement shall apply to this IRU- 14. I Agreement, and govem and control each Party's rights and obligations hereunder. RECITALS WHEREAS, the CITY has constructed a fiber optic infrastructure within the jurisdictional boundaries ofthe CITY, known as the "Cable System," in the general route set forth in Exhibit G "Map of Cable System"; and WHEREAS, title to the Cable System is vested exclusively in the CITY; and WHEREAS, the CITY grants an indefeasible right of use to various commercial users in the City to use certain optical dark fiber strands and associated facilities in the Cable System for voice, data, and other video services; and WHEREAS, the CITY desires to grant to CUSTOMER an indefeasible right to use certain optical dark fiber strands and associated facilities for CUSTOMER's exclusive use; and WHEREAS, CUSTOMER desires to lease 0.5 fiber strand miles of certain Cable System components between CUSTOMER's buildings located at 4646 Hampton Street, Vernon, Califomia and 2520 Chambers Street, Vernon, California (referred to individually as "Customer Facility" and collectively as "Customer Facilities"). THEREFORE, in consideration of the mutual agreements herein, the Parties agree as follows: 1.Recitals. The Parties to this IRU-14.1 Agreement agree and attest to the truth and accuracy ofthe recitals set forth above, which are hereby incorporated and made a pan of this IRU-14.1 Agreement by this reference. Grant of Indefeasible Right of Use. The CITY hereby grants to CUSTOMER an Indefeasible Right of Use (IRU) of the following Cable System components: -t- 2. ,. Fiber strand numbers 11 and 12 of the Cable System terminating in each Customer Facility and dedicated for CUSTOMER's exclusive use, as identifi ed in IRU-14.1-Schedule-E. The above-described individual Cable System components collectively shall be the Customer System for this IRU-14.1 Agreement. The Customer System shall be inclusive of the above described Cable System components between and including the CITY's sides of the originating and terminating Demarcation Points at the Customer Facilities. The Customer System does not include any conduit, fiber, premises, buildings, boxes, or other equipment or facilities on the CUSTOMER's side of the Demarcation Points. Project Schedule. The CITY will construct and install any necessary Backbone Extensions or Service Drops as may be necessary to provide the Customer System for CUSTOMER'S use in accordance with the terms of the Agreement and this IRU-14.1 Agreement. The CITY shall use commercially reasonable efforts to comply with the project schedule that is attached hereto as IRU- 14. 1 -Schedule-F or as otherwise determined by the Parties in writing; provided, however, that CITY's failure to comply with the project schedule shall not constitute a breach or default hereunder, and CITY SHALL HAVE NO LIABILITY TO CUSTOMER FOR ANY DAMAGES, INCLUDING, WITHOUT LIMITATION, ANY CONSEQUENTIAL OR INCIDENTAL DAMAGES, LOSS OF USE, LOSS OF PROFITS, OR OTHER CLAIMS IN THE EVENT THE CITY DOES NOT COMPLY WITH THE DATES SET FORTH IN THE PROJECT SCHEDULE. As CUSTOMER's sole and exclusive remedy in the event of CITY's failure to comply with the project schedule, CUSTOMER may deliver written notice of intent to terminate to CITY within five (5) days following the CITY's failure to meet the Construction End Date, as set forth in Schedule-F or as otherwise determined by the Parties in writing. If the CITY fails to complete construction within 10 days following receipt of CUSTOMER's notice, CUSTOMER shall have the right to terminate this IRU-14.1 Agreement; provided, however, that to the extent that the failure to comply with the project schedule is directly or indirectly affected by acts or omissions of CUSTOMER, its employees, agents, or representatives (collectively, a "CUSTOMER Delay"), the project schedule shall be extended on a day for day basis for each day of delay wholly or partially caused by CUSTOMER Delay. Following such a termination pursuant to this provision, CUSTOMER shall not incur a Termination Settlement Charge and CUSTOMER's remaining financial obligations hereunder shall be discharged. CUSTOMER shall only be responsible for fees incurred through the last day of service, and shall receive a pro-rata refund ofany pre-paid but unused fees. Commencement and Lenqth of Term. CUSTOMER's Indefeasible Right of Use in each component of the Customer System shall commence on the date that CUSTOMER accepts or is deemed to have accepted, in accordance with Section 27 of the Agreement, the portion of the Cable System covered by this IRU-14.1 Agreement as meeting the specifications set forth in the aftached IRU-14.1- Schedule-D. determined in accordance with the acceptance testing plan as -2- 4. described in Section 27 of the A$eement (the "Commencement Date"). The lenglh of the Term for this IRU-14.1 shall be three (3) years from the Commencement Date. Thereafter, this IRU-14.1 Agreement shall continue on the same terms and conditions for successive three (3) month terms, unless and until either party provides the other with no less than ninety (90) days' notice of its intention to terminate this IRU-14.1 Agreement. Oblieations of the CITY. The CITY shall provide the following items for the Customer System: 4.1 A Demarcation Point at each CUSTOMER access location; 4.2 Optical fiber cable extension segments from splice enclosure in the public righrof-way to the Demarcation Point in the Customer Facilities, essentially the construction ofa Service Drop; and 4.3 Where applicable, place one inner-duct, which will house hber optic cable extension segments, inside the CUSTOMER furnished conduit, from the conduit entry to the Demarcation Point. Oblieations of the CUSTOMER. CUSTOMER, at its sole cost, and in a manner acceptable to CITY, shall provide the following items for the Customer System: 5.1 Provide the CITY access to a suitable conduit system leading to the Demarcation Point inside the Customer Facilities; 5.2 Provide the CITY access to the demarcation room for placement of necessary demarcation accessories and for CITY's access to perform scheduled or emergency maintenance; 5.3 Bring its connecting optical fiber patch cords to the Demarcation Points; 5.4 Specifu the type of optical connector needed at the demarcation termination point. The CITY shall install ultra-SC tlpe connector unless otherwise specified by the CUSTOMER; and 5.5 CUSTOMER shall be responsible for purchase, installation and maintenance of any and all electronic, optronic and other equipment, materials and facilities used by CUSTOMER on the CUSTOMER side of the Demarcation Points in connection with the operation of the Customer System, none of which is included in this IRU-14.1 Agreement. Costs and Fees. An invoice setting forth a summary of the transactions under the IRU-14.1 Agteement is attached hereto as IRU-14.1-Schedule-B. The payments and charges shall be in accordance with Section 28 of the Agreement and as specifically identified in the following subparagraphs: 5. 6. 7. 6.1 CUSTOMER shall pay a one-time construction and installation charge of $ 1.700.00 pursuant to an invoice issued by the CITY. 6.2 CUSTOMER shall pay quarterly IRU fee payments of $1,140.00 based on a monthly base rate of $380.00 with the first quarterly payment invoiced by the CITY upon CUSTOMER execution of this IRU-14.1 Agreement. 6.3 If CUSTOMER requests additional connection or disconnection services in writing, CUSTOMER shall pay for each additional service the fees stated in Section 2.2 of IRU-14.1-Schedule{. One+ime CUSTOMER service charges also apply if the CUSTOMER requires installation of a new distribution ring or concentrator in an already established Cable System or Customer System distribution cable segment, rearrangement of existing service connections, or rearrangement of a ring or concentrator operation. 6.4 CUSTOMER shall be charged with any False Maintenance Calls on a time-and-materials basis at the standard CITY rates in effect at the time services are performed. The CITY'S rates in effect at the time of execution of this IRU-14.1 Agreement are set forth in IRU- 14. I -Schedule- A hereto and are subject to increase at a rate not to exceed the cumulative increase in the Consumer Price Index (as defined below) since the last rate change. 6.5 During the Term, the CITY reserves the right, on an annual basis, to increase the recurring IRU fees at a rate not to exceed the Consumer Price Index, All Urban Consumers (CPI-U), published by the United States Department of Labor, Bureau of Labor Statistics (1982-84:100). The recurring fee may be increased, effective no more than once during each twelve (12) month period that immediately follows the yearly anniversary of the Effective Date of this IRU-14.1 Agreement, by the cumulative increase, if any, in the CPI-U for the Los Angeles-Riverside-Orange County, CA area for the preceding twelve ( 12) month period. In the event such index shall cease to be computed or published, CITY may, in its reasonable discretion, designate a successor index to be used in determining any increase to the recurring fee. Credit Allowance. For any Total Service Intemrptions, the CITY will grant CUSTOMER a "Credit Allowance" to be credited against the CUSTOMER's monthly charges. Credit Allowances will be calculated in one (1) hour increments, with partial hours rounded up to a full hour. Each hour of Total Service Intemrption is valued at $0.53 (equal to the monthly charge, $380.00, divided by the total number ofhours in an average month,720). A "Total Service Intemrption" will be deemed to have occurred only if: 4 7.1 Service becomes unusable to CUSTOMER as a result of the failure of CITY equipment, facilities, or personnel used to provide the service; and 7.2 The intemrption is not wholly or partially the result of: 7.2.1 The acts or omissions of CUSTOMER or its agents, employees, suppliers or contractors; 7.2.2 The failure or malfunction of non-CITY equipment, facilities, or system; 7.2.3 Any circumstances or causes beyond the control of the CITY; or 7 .2.4 Scheduled maintenance or alteration, or the completion of such maintenance or alteration beyond normal time requirements. 7.3 All of the Credit Allowances will accumulate during a calendar year and be credited against the CUSTOMER's invoice for the first quarter of the next calendar year; provided, however, that Credit Allowances will be paid to CUSTOMER in cash if any are outstanding at the end of the Term. This IRU-14.1 Agreement, including 4ll Schedules and Exhibits which are attached hereto, are hereby incorporated into the Agreement, dated _ _, 2015 as Exhibit "A" to the Agreement. The Agreement, this IRU-14.1 Agreement, and all Schedules and Exhibits hereto, constitute the entire agreement between the Parties with respect to the subject matter hereof. 9. This IRU-14.1 Agreement cannot be modified except by written instrument signed by both Parties. [Signatures begin on the next page] 8. 5 IN WTTNESS WHEREOF the Parties have executed and delivered this IRU-14.1 Agreement effective the day and year first above written: CITY OF VERNON By, Michael W. McCormick, Mayor ATTEST: Maria C. Ayala, City Clerk APPROVED AS TO FORM: Hema Patel, City Attomey CUSTOMER By, Print Name: Title: 6 IRU-14.1-Schedule-A MAINTENANCE AND REPAIR RATES Charees for Time and Material Service Where applicable, the CITY shall perform maintenance or installation service at the rates established below. Unless specifically authorized by the CUSTOMER in writing, no scheduled maintenance will be performed outside of normal working hours. Normal Working Hours Hourly Rate 7:00 a.m. to 3:30 p.m., $ 85.00 Monday through Friday (except for CITY observed holidays) Overtime Hours Hourly Rate 6:00 a.m. to 7:00 a.m., and S 105.00 3:30 p.m. to 12:00 midnight, Monday through Friday (except for CITY observed holidays) Holiday Hours and Special Call Out Hourly Rate Any time during a CITY observed holiday $ 130.00 or any time during Saturday or Sunday, or any time between the hours of 12:00 Midnight and 6:00 a.m., Monday through Friday Charges will be made for travel time to the location where maintenance is to be performed. Charges will also be made for travel time from the said location (a) in the event that maintenance carries over after 3:30 p.m., or (b) for any maintenance performed during holiday hours of special call out. Charges will be for a minimum of two (2) hours for normal and overtime hours and for a minimum offour (4) hours for holiday hours and special call out. CITY Holiday Schedule: New Year's Day Martin Luther King Day President's Day Memorial Day Veterans Day Thanksgiving Day and Day After Independence Day Christmas Day Labor Day Cesar Chavez Day A-l IRU-14.1-Schedule-B SAMPLE OUARTERLY INVOICE This sample IRU-14.1 Agreement Invoice provides a summary of the quarterly charges under this IRU- 14. I Agreement at the time of execution. Customer Facilities: 4646 Hampton Street and 2520 Chambers Street, Vemon, cA 90058 Approximate Length of Fiber Optic Strand: (0.5 Fiber strand miles) ITEM Description IRU Fees Quarterly IRU-14.1 Base Charges $ 1,140.00 (October 1,2015 through December 30,2015) ($380.00/month x 3 months : $1,140.00) (l) (2) Fiber strands x 0.5 strand miles x $180/mil = $180.00 (2) (1) Fiber ports x 550/Wrt : 5200.00 $380.00 Note: The length of strand miles has been rounded to two decimal places in the above- stated figures, which explains any minor discrepancies in the calculation of the total quarterly fee. Total Quarterly IRU-14.1 Agreement Fees s r,140.00 Note: Transaction invoices reflect the services purchased from the CITY by the CUSTOMER and shall be the amount due the CITY upon CUSTOMER acceptance. This invoice reflects no federal, state, or local taxes. Ifapplicable, taxes shall be added or invoiced separately. B- I IRU-14.1-Schedule-C DARK FIBER PRICING 1.0 FEES: I .l Monthly Dark Fiber Services Fees: CUSTOMER shall pay the CITY in quarterly installments for the use of the first two Fiber strands. The total quarterly charge for the City's services under this IRU-14.1 Agreement is $1,140.00. That amount is calculated on the basis of the following rounded costs: A. $ 180.00 per Fiber strand mile (0.5) per month (3) for the first two Fiber strands (2); plus B. $50.00 per Fiber port (4) per month (3). 2.0 Additional Services and Connection/Disconnection{Rearransement Fees 2.1. General If the CUSTOMER requests the use of additional fiber strands, the CITY will charge CUSTOMER an additional $ 120.00 use fee per Fiber strand mile per month per each additional fiber. The Parties shall amend this Agreement in writing upon the CUSTOMER's request to add additional Fibers, provided the CITY agrees to make the additional fiber available to CUSTOMER. 2.2 Buildine Service If the CUSTOMER requests the use of additlonal fiber strands or requests the deletion of the use of certain fibers, the CITY will charge CUSTOMER a one-time service connection (or deletion) fee for the initial establishment and cutover of a CUSTOMER's point-to-point or distribution Cable System (ring or segment). The following one-time fees apply if the CUSTOMER requests the addition or deletion of building service to/from a CUSTOMER point-to-point or distribution Cable System and for all building service connections: A. Service Addition: Fiber Count Charge/Fiber Each $400 B.Service Deletion: Fiber Count Charge/Fiber Each $200 c-2 2.3 Maior Requests bv CUSTOMER For services such as adding a new ring, changing a segment into a primary path./protect path (ring), adding or changing a Demarcation Point, rearranging multiple service connections, and rearranging a ring(s), the CUSTOMER shall submit a request and service description to the CITY. The CITY shall retum to the CUSTOMER a cost estimate for the necessary work and materials within 14 days of receipt of the service request. The CITY's charge to the CUSTOMER shall be based on time and materials in accordance with the rates set forth in IRU-14.1-Schedule-A plus a fifteen (15) percent overhead charge. The parties shall agree in writing before proceeding with such work. c-j IRU-14.1-ScheduIe-D CUSTOMER SYSTEM SPECIFICATIONS l.General The CITY shall install and maintain the Customer System within the CITY's Cable System in accordance with the criteria and specifications stated herein. 2. Desien Criteria The CITY will endeavor to keep the number of splices in a span to a minimum. 3. Ootical Fiber Specifications The CITY will use commercially reasonable efforts to meet the Specifications as detailed below for all cable installed for the Term of this IRU-14.1 Agreement. Ifany of the following Specifications (optical, splice loss, and end to end attenuation test criteria) or any other Specifications set forth in this IRU-14.1 Agreement are not met following the notice and cure periods set forth in the Agreement, CUSTOMER shall have the remedies set forth in the Agreement, subject to all limitations on remedies and damages set forth in the Agreement. NOTHING SET FORTH HEREIN CONSTITUTES A REPRESENTATION OR WARRANTY OR GUARANTEE THAT THE CABLE SYSTEM OR CUSTOMER SYSTEM WILL MEET THE SPECIFICATIONS SET FORTH BELOW, and failure to meet the Specifications shall not be the basis for any claim by CUSTOMER for damages or other remedies, except for those remedies specifically provided for in the Agreement. 3.1 Single Mode Fiber: Maximum attenuation, 13 1Onm Maximum attenuation, 1 550nm Cladding diameter Core diameter Cutoff Wavelength Zero dispersion wavelength Maximum dispersion (1285-1330 nm) 0.5 0.4 125 +l- 3 8.3 1250 +/- 100 1310 +l- t2 3.5 dB/Km dB/Km um um nm nm ps/ (nm-km) 3.2 Splice Loss Splice loss on CITY cables will average less than or equal to 0.15 dB for all splices the CITY makes under this IRU-14.1 Agreement. The 0.15 dB splice average will only apply to splices between cables of identical physical and optical properties (i.e. core and D-l Snecifications IInits cladding dimensions, reflective index and optical loss characteristics). All splices shall be measured using bi-directional methods and averages. 3.3 End+o-End Attenuation Test Criteria The Customer System will be tested at both wavelengths specified for the installed cable type as specified below unless otherwise stated in this IRU-14.1 Agreement: Single Mode Fiber 13 10 nm and 1550 nm The end-to-end attenuation test criteria will be based on the following formula: Maximum acceptable end-to-end attenuation: (A X Lx) + (0.15 X Nsp) + C Where: A = Max. attenuation at each wavelength as specified in Section 3 above Lx = Installed length of cable in kilometers (km) Nsp : Number of fiber splices in the cable system C : Connector/pigtail loss. The attenuation contribution of each pigtail with associated connector is considered to be 1.0 dB comprised of 0.85 dB connector loss and 0.15 dB splice loss (pigtail to OSP cable splice). Therefore, C = 1.0 dB if the span is connectorized on one end and 2.0 dB if connectorized on both ends. In the event that the fiber measured attenuation values change after the cable is installed and is degraded by 2db or greater than specified above, the CITY will perform corrective maintenance, pursuant to a request by the CUSTOMER, to ensure that the attenuation values conform to the Specifications set forth in this IRU-I4.1-Schedule-D. Analog Video The CITY will not warrant CUSTOMER analog video transmission within the foregoing system parameters. D-2 IRU-14.1-Schedule-E MAP OF CUSTOMER SYSTEM E-l o-t0z -lrs-l 8 )tH3 0"Addv Itv0 N0 stAlS '0N sl3n00ud nnrNNlItn 0t- 0lsvll soNVuLs ulSEI InolHSS - r'i t-nul N8V flltsts ulnolsnc io jr{o{1Y301 3tuL3Tll t svc F o i; oi',2eH I !i 5!oz "9 yar afuo:1!gs!-U;E;i!I9EiSara{;u^c o.iz;!ilsri!s>ibxgi!:, olzlt gl I e I o o 5l I IRU-14.1-Schedule-F PROJECT SCHEDULE Construction Start Date: Construction Completion Date: System Testing: Available for Customer System Use: August 19,2015 August 31, 2015 August 27, 2015 September l, 2015 F-l IRU-14.1-Schedule-G CITY'S CABLE SYSTEM MAP G-l sr3n00ud nnrNNlIrn 0r 0lsvll soNvuls ulSE c InolH3s -L il-nur I o iI 9tyriH E 9;540 "", Ezr i!.r ..iE!$" :3: 36f9Xlle:toizi! ;roiP:8Efr3ULO<O o o @D.E EEIEIT "B' TROUBLE-REPORTING PROCEDURE The CITY maintains its fiber optic network (Cable System) in accordance with industry standards. Should a problem or trouble with the service arise, please call 323- 826-1461 (24 hours) to report trouble. This is the number of the CITY'S Technical Control Center (TCC). The TCC will inform the maintenance and management group of all trouble calls. The acting Maintenance Supervisor will coordinate all restoration activity. The CUSTOMER can obtain the name and telephone number of the acting Maintenance Supervisor from the TCC at the time of trouble reporting. Upon clearance of the trouble, the TCC will notiff the trouble-reporting location of clearance and reason for trouble. The CITY shall use commercially reasonable efforts to be on site and begin investigating and correcting the reported condition within four (4) hours of receipt of report of the trouble. The CITY shall use commercially reasonable efforts to provide the CUSTOMER a report of progress or lack thereof in restoring the system to operation, at four-hour intervals, and shall otherwise use commercially reasonable efforts to perform in accordance with the Customer System/Cable System Specifications ofthe Short Form IRU Agreement's Schedule-D. EXHIBIT "B" DATE: TO: FROM: RE: STAFF REPORT HUMAN RESOURCES DEPARTMENT August 18,2015 Honorable Mayor and City Council Teresa McAllister, Director of Human Resources Department Adoption of City of Vernon Exceptional Employee Program (VEEP) Award Recommendation A. Find that approval of the proposed VEEP Award in this staff report is exempt from Califomia Environmental Quality Act C'CEQA') review, because it is a general policy and procedure making activity that will not result in direct or indirect physical changes in the environment, and therefore does not constitute a "project" as defined by CEQA Guidelines section 15378. Furthermore, even if it were a project, because such activity will not have any effect on the environment, this action would be exempt from CEQA review pursuant to CEQA Guidelines Section 15061(b)(3), the general rule that CEQA only applies to projects that may have a significant effect on the environment; and B. Adopt the attached Vemon Exceptional Employee Program (VEEP) and; C. Authorize the City Administrator and the Director of Human Resources to administer the program annually. Background Employee recognition programs are designed to motivate, recognize, and reward outstanding employee excellence and public service. The VEEP Award was created to recognize excellence in the areas of quality service, process improvement, and teamwork. In creating a high- performance workplace, recognition is a motivating factor that: o Provides employees with job satisfaction and encouragement to perform their jobs more effectively. o Provides excellent motivators that are critical to employee retention. Page 1of 3 RECE'VED AUG 0 6 2015 . Provides employee with appreciation for their efforts and reinforces that their work is valuable. o Contributes to the overall objectives and effective operations of the City of Vemon. o Promotes good employee relations. . Improves morale, and increases productivity. In furtherance of the City's good govemance reform efforts, staff recommends the adoption of the attached program. A selection committee comprised of department representatives will annually evaluate nominees based on the below criteria in three (3) award categories; Employee of the Year, Team Award and Cost-Savings Idea of the Year. . Exhibited excellence to public service and to serving the City of Vemon businesses, customers and workforce. Evidence ofexcellence in service should be demonstrated by communication skills, problem solving, customer focus, and such people metrics as responsiveness, helpfulness, knowledge, courtesy and accessibility. o Sustained excellence in productivity and consistent quality of work. . Demonstrated high degree of initiative above and beyond the normal performance responsibilities. . Outstanding participation in the development of a program that has benefited the City (new procedure or process which effectively increased efficiency in operations, public service, or improves cost savings). . Displayed outstanding leadership qualities through teamwork, promoting employee morale and cooperation and respectful treatment of others. Winners shall be announced arurually in January ofeach calendar year and shall be awarded the following: For awards of two or less recipients shall receive: o A certificate presented by the City Council at a Council meeting. . One-day Employee Leisure Leave. . $ 100 Gift Certificate. r Recognition at Employee Service Awards Dinner. . Recognition at Employee [nformational Meeting. . Editorial in the Vernonite Employee Newsletter. Page 2 of 3 For awards ofthree (3) through ten (10) recipients shall receive: o A certificate presented by the City Council at a Council meeting. o Two (2) movie tickets. o Choice of Luncheon or Breakfast for award recipients. o Recognition at Employee Service Awards Dinner. o Recognition at Employee lnformational Meeting. o Editorial in the Vemonite Employee Newsletter. For awards ofeleven (11) or more recipients shall receive: o A certificate presented by the City Council at a Council meeting. o Choice of Luncheon or Breakfast for award recipients. r Recognition at Employee Service Awards Dinner . Recognition at Employee Informational Meeting. o Editorial in the Vemonite Employee Newsletter. Fiscal Imoact The approximate cost to implement the Vemon Exceptional Employee Program (VEEP) Award is $1,000 and can be absorbed in the Human Resources Departrnental line item budget for fiscal year 2015-2016. Attachment(s) l. VEEP Award Program Brochure and Summary Page 3 of3 VERNON EXCEPTTONAL EMPLOYEE PROGRAM PURPOSE DESIGNED TO MOTIVATE, RECOGNIZE, AND REWARD OUTSTAND- ING EMPLOYEE EXCELLENCE AND PUBLIC SERVICE The VEEP Award was created to reco8nize excellence in the are- as of quality service, process improvement, and teamwork. The program comprises several aspects, including those described herein. ln creating a high-performance workplace, recognition is a motivating factor that: . Provides employees with job satisfaction and encour- agement to perform their jobs more effectively. o Provides excellent motivators that are critical to em- ployee retention. o Provides employee with appreciation for their efforts and reinforces that their work is valuable. . Contributes to the overall objectives and effective operations of the City ofVernon. . Promotes good employee relations. . lmproves morale, and increases productivity. Nominate Someone for a VEEP Award Any employee can make nominations by completing an VEEP Auard Nomination Form. Employee must meet the follorv- ing criteria: r Completed probationary employmen t period. r Full and part-time employees of the Ciq of Vernon are eligible. r Attained satislactoryperformance eralualion at time of nomination. r No disciplinary actions on 6le in Human Resources Oflicial Personnel File within the preceding nvelve (rz) months. r Must not have received an award rvith- in the last two (z)years. Nomination Forms can be obtained on- line at *rru'.cityofu ernon.org/Human Re- sources or on the Ciry's "M" Drive-HR Forms. Self -nominations are permitted. --hr{r -a Speciol thonks to the following employees who contrib- uted their voluoble input into the development oI the VEEP Aword on beholf of their respective deportments: Veronica Avendano, Human Resources Department Brian Byun, City Attorney's Office Michael Busch, Fire Department Todd Dusenberry Vernon Gas & Electric Lilia Hernandez, city Administration Debbie Jua rez, City Clerk Lissette Melendez, Public Works, Water & Dev. Services Lisette Michel, Human Resources Department Hilda Moreno, Flnance Department Linda Smith, Health & Environmental Control Roberto Sousa, Police Department Michael Wilson, Fire Chief I SELECTION CRITERIA Nominations should provide examples of how the individual demonstrates skills and behaviors listed below. The selection com- mittee will evaluate the nominees based on all or some of the below criteria for award categories in Employee of the Year, Team Award, and Significant Cost-Savings ldea of the Year: . Exhibited excellence to public service and to servin8 the City of Vernon's, businesses, customers and/or workforce. Evidence of excellence in service should be demonstrated by communication skills, problem solving, customer focus, and such people metrics as responsiveness, helpfulness, knowledge, courtesy and accessibility.. . Sustained excellence in productivity and consistent quality of work. Demonstrated high degree of initiative above and beyond the normal performance of responsibilities. Outstanding participation in the development of a program that has benefited the City (new procedure or process which effectively increased efficiency in operations, public service, or improves cost savings). Displayed outstanding leadership qualities through team- work, promoting employee morale and cooperation and respectful treatment of others. PROCEDURE Employee submits a completed nomi- nation form to the Department Head for approval. Upon approval, nomina- tion package is submitted to Human Resources Department with any additional documentation (i.e. com- mendation, program certificate, letters of recognition, etc.) All submissions must be received by the 5th day of November for the annual recognition award. The selection committee will evaluate the submissions and provide the name of the winning candidate(s) to the City Administrator. RECOGNITION For award recipients of: 2 or less - a certificate presented by the City Council, one-day employee award leave, $10o gift certificate, recognition at Employee Service Awards Dinner, Employee lnformational Meetings, and highlighted in the Vernonite Employee Newsletter. 3-10 - a certificate presented by the City Council, two (2) movie tickets, choice of breakfast or luncheon, recog- nition at Employee Service Awards Dinner, Employee lnformational Meetings, and highli8hted in the Vernonite Employee Newsletter. 11 or more-a certificate presented by the City Council, choice of breakfast or luncheon, recognition at Employee Service Awards Dinner, Employee lnformational Meetints, and highlight in the Vernonite Employee Newsletter. V.E.E.P AWARD Purpose The Vemon Employee Excellence Program (VEEP) is designed to motivate, recognize, and reward outstanding employee excellence and public service. Program Summary The VEEP Award was created to recognize excellence in the areas of quality service, process improvement, and teamwork. The program comprises several aspects, including those described herein. In creating a high-performance workplace, recognition is a motivating factor that: o Provides employees with job satisfaction and encouragement to perform theirjobs more effectively. o Provides excellent motivators that are critical to employee retention. o Provides employee with appreciation for their efforts and reinforces that their work is valuable. o Contributes to the overall objectives and effective operations ofthe City of Vemon. o Promotes good employee relations. . Improves morale, and increases productivity. Qualifications Any employee can make nominations by completing the attached nomination form. Employee being nominated must meet the following criteria: o Completed probationary employment period. o Full and part-time employees of the City of Vemon are eligible. o Attained satisfactory performance evaluation at time of nomination. o No disciplinary actions on file in Human Resources Official Personnel File within the preceding twelve (12) months. . May not have received an award within the last two (2) years. Page | 1 Self-nominations are acceptable. Nomination Forms can also be obtained onJine at www.cityofuernon.org/Human Resources or on the City s "M" Drive-HR Forms Selection Criteria Nominations should provide examples ofhow the individual demonstrates skills and behaviors listed below. The selection committee will evaluate the nominees based on all or some of the below criteria for award categories in Employee ofthe Year. Team Award. Cost-Savings Idea: . Exhibited excellence to public service and to serving the City of Vemon's, businesses, customers and workforce. Evidence of excellence in service should be demonstrated by communication skills, problem solving, customer focus, and such people metrics as responsiveness, helpfulness, knowledge, courtesy and accessibility. Sustained excellence in productivity and consistent quality of work. Demonstrated high degree of initiative above and beyond the normal performance of responsibilities. Outstanding participation in the development ofa program that has benefited the City (new procedure or process which effectively increased efficiency in operations, public service, or improves cost savings). . Displayed outstanding leadership qualities through teamwork, promoting employee morale and cooperation and respectful treatment of others. Nomination Procedure Employee submits a completed nomination form to the Department Head for approval. Upon approval, nomination package is submiued to Human Resources Department with any additional documentation (i.e. commendation, program certificate, letters of recognition, etc.) All submissions must be received by the 5th day of November for the armual recognition award. The selection committee will evaluate the submissions and provide the name of the winning candidate(s) to the City Administrator based upon the above criteria. An individual rating sheet shall be provided to each rater for the evaluation ofeach nomination submitted. Departments may submit more than one nomination form representing their department. Recognition Awards For awards of two or less recipients shall receive: Page l2 o A certificate presented by the City Council. . One-day Employee Award Leave - The one day leave must be used within twelve months ofreceipt and has no cash-out value. o $100 Gift Certificate o Recognition at Employee Service Awards Dinner o Recognition at Employee Informational Meeting o Editorial in the Vemonite Employee Newsletter For awards ofthree (3) through ten (10) recipients shall receive: o A certificate presented by the City Council o Two (2) movie tickets . Choice of Luncheon or Breakfast for award recipients . Recognition at Employee Service Awards Dinner . Recognition at Employee lnformational Meeting . Editorial in the Vemonite Employee Newsletter For awards of eleven (1 I ) or more recipients shall receive: o A certificate presented by the City Council o Choice of Luncheon or Breakfast for award recipients . Recognition at Employee Service Awards Dinner . Recognition at Employee lnformational Meeting . Editorial in the Vemonite Employee Newsletter Nomination Committee The nomination Committee shall consist of one representative from each City Department. The nomination committee members will be rotated each calendar year in January. The Human Resources Departrnent shall be a non-voting member responsible for the oversight ofthe pro$am. Page l3 REGEI!\ir P JUL29 TO: FROM: RE: CITY CLERti'; uitlCE August 18, 2015 RECEIVED JUL 2 2 20t5STAFF REPORT VERNON POLICE DEPARTMENT CIIY Honorable Mayor and City Council Daniel Calleros, Police Chief X- Federal Equitable Share Agreement and Annual Certification Report Recommendation A. Find that granting authority to execute and submit the above-referenced agreanent and related documents is exempt from Califomia Environmental Quality Act (CEQA) review, because such is a govemment fiscal activity, which does not involve any commitrnent to any specific project which may result in a potentially sigrificalt physical impact on the environment and is therefore not a "project" as defined by CEQA Guidelines section 15378. Furthermore, even if it were a project, the activity would be exanpt in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and B. Authorize the Police Chief and City Administrator to execute the Federal Equitable Share Agreernent and Annual Certification Report on behalfofthe City of Vernon, in substantially the same form as submitted herewith. Background When local poiice agencies work with federal agencies to enforce federal criminal laws, the agency may apply for an equitable share of any forfeited proceeds. The Vemon Police Departrnent ('VPD') currently receives an equitable share of forfeited proceeds from investigations conducted by the investigator assigned to the Southwest Borders Initiative Taskforce (SWBD. In order to receive such proceeds, the VPD must execute an equitable share agreement and certifl that the forfeited proceeds received are allocated as required by federal statutes and regulations established by the U.S. Departrnent of Treasury and the U.S. Department of Justice. Page 1 of 2 These laws and regulations require the VPD to do the following: . Forfeited funds or property must be kept separate {iom state or other forfeitures . Submit a federal Equitable Sharing Agreernent and Certification annually with both agencies o A record shall be maintained ofthe funds or property and any expenditures . Funds exceeding $100,000 shall be audited annually The Department of Justice implemented an electronic reporting process to streamline the reporting offunds received by local agencies. This process requires participating agencies to use a reporting form that combines the equitable share agreernent as well as the annual certification report. The reporting form requires signatures by the Agency Head (Police Chief) and the Governing Body Head (City Administrator) to certifu that the City understands its obligations under the agreement and to certifu that the reported financial information regarding the VPD's receipt and expenditure of the funds is accurate. The VPD has implernented procedures in compliance with the outlined laws and regulations. Forfeited proceeds received through the equitable share program vary from year to year as funds are based on the resolution of specific court cases. When received, funds are placed in a specific VPD asset forfeiture account. Fiscal Imoact There is no direct fiscal impact by the execution ofthe federal equitable share agreement and annual certification report. Attachment(s) None Page 2 of 2 RESOLUTTON NO. A RESOLUI|ION OF THE CfTY COUNCIL OF THE CITY OF VERNON APPROVING THE GREATER LOS ANGELES TNTEGRATED REGTONAL WATER MANAGEMENT PLAN UPDATE 2014 FOR THE 2015 FINAI ROIJND OF' PROP 84 IRWM GRANT PROGRAM WHEREAS, the Los 7{ngefes caEeway Region Integrated Regional water Management Joint powers Authority (the "GWMA" ) is comprised of cities and other government. agencies interested in maximizing opportunities to integrat.e water management act.ivities such as water supply reliability, water quality, environmental stewardship, and flood management for the Lower san Gabrier and Lower Los Angeres su-b- region,. and WHEREAS, proposition 84 provided funding for the creater Los Angeles fRblM planning granE used t.o develop the creater Los Angeles fntegrated Regional water Management plan pursuant to the Safe Drinking water, wat.er Oual,ity and Supply, Flood Control , River and Coastal- Protection Bond Act of 2006 (public Resource Code (pRC) Sect.j-on 75001 et seq. ) , and WHEREAS, the Greater Los Ar]gel-es IRWM Leadership Committee is a Regional Wat.er Management Group ("RWMG" ) recognized by the State of California Department of Water Resources; and WHEREAS, Ehe creater Los Angel-es IRWM Rmitc has developed the Greater Los Angel_es fnEegrated Regional Water Management plan t.o benefit the GreaEer Los Angeles Region and its sub-regions; and WHEREAS, the City of Vernon actively supports and is a member of the GWMA; and WHEREAS, by memo dat.ed August 18, 2015, the Director of Pu-blic works, water & Development services has recommended approvaf of the creater Los Angeles rnEegrated Regional water Management plan update 2ol4 for t.he 2015 final round of prop 84 rRwM Grant program,. and WHEREAS, the Cit.y Council of the City of Vernon desires to approve the Greater Los Angel-es rntegrated Regional water Management Plan Update 201,4 for the 2015 finaf round of prop 84 fRWM Grant Program . NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE: CITY OF VERNON AS FOLLOWS: SECTION l-: The Cit.y Councif of the City of Ver.non hereby finds and determines t.hat the above recit.af s are true and correct. SECTION 2:The City Council of the City of Vernon finds thaE this action is exempt under the California Environmental eual_ity Act (CEoA) in accordance with CEQA Guidelines Section 150G1(b) (3), the generaf rule that CEQA only applies to projects that may have an effect on the environment and pursuant to Section l-5308, because the action is to assure the maintenance, restoration, enhancement or protection of the environment where t.he regul-atory process involves procedures for the prot.ection of the environment.. SECTION 3: The City Council of the City of Vernon hereby approves t.he Greater Los Angeles Integrated Regional Water Management Plan Update 2O)-4 for the 201-5 final round of prop 84 IRWM Grant. Program, a copy of which documents have been submitted to lhe City Council concurrently herewith, and the City Cl_erk, or Deputy City Clerk, is directed to receive and file t.hem. Such documents and other materials which constitute the record of proceedings in this matter sha1l be maintained in the office of t.he City Clerk who is and shall be the custodian thereof. 2 SECTION 4: The City C1erk, or Deputy City C1erk, of t.he city of vernon shal1 certify to the passage, approval and adoption of this resolution, and the City Cferk, or Deputy City C1erk, of t.he City of Vernon shafl cause this resol-ution and the City C1erk,s, or Deputy City Cferk's, certifi-cation t.o be entered in the File of Resol-utions of the Council of this City. APPROVED AND ADOPTED this 18th day of August, 2Ol-5. Name : Title: l4ayor / Mayor pro-Tem A11Eb1: City Clerk / Oeputy City Clerk APPROVED AS TO FORM: City Attonney srArE oF cArrFoRNrA i ""courrrY oF LoS ANGELES ) I, , City Clerk / Deputy City Cl-erk of the City of Vernon, do hereby certify that. the foregoing Resolution. being Resolution No. , was duly passed, approved and adopt.ed by the city council of t.he city of vernon at a regurar meeting of the city council duly held on Tuesday, August 18, 2or-5, and thereafter was duly signed by the Mayor or Mayor pro-Tem of the City of Vernon. Executed this _ day of August, 2015, at Vernon, Cal_ifornia. Cit.y Clerk / Deputy Ciry Clerk (sEAr, ) 4 STAFF REPORT CITY uLrpulitre WOnrS, WATER & DEVELOPMENT SERVI DEPARTMENT DATE: TO: FROM: RE: August lt, 2015 Honorable Mayor and City Council z-a ) Samuel Kevin Wilsdi,'birector of Public Worlcs, I)evelopment Services Originator: Lissette Melendez, Associa e Enginee Grant Deed - 3636 26th Street Recommendation A. Find that accepting the Grant Deed is exempt from the California Environmental Quality Act (CEQA) in accordance with CEQA Guidelines section 15301(c) because if any construction occurs as a result of accepting and executing the Grant Deed, the work would merely involve negligible expansion of an existing street; and B. Adopt the proposed resolution to authorize the Mayor and City Clerk to execute the Certifrcate of Acceptance and the Grant Deed for approximately 2,537 square feet of land located at 3636 26i' Street. Backqround As part ofa property development project, this Grant Deed from 2448 East 25'h St., a limited liability company dedicates to the City of Vemon in fee simple title, a portion of property at 3636 26h Street, assessor's parcel number 5192-025-014. The dedication is approximately 2,537 square feet in size, located at the corner of 26d Street and Downey Service Road. This dedication will meet the City of Vernon's Master Plan of Streets and will be used for street purposes by increasing the width of the right- of-way. The grant deed has been approved as to form by the City Attomey's Office. Fiscal Imoact Processing of the Grant Deed has no fiscal impact. Attachment(s) Grant Deed Change or Ownership Form Resolution RECEIVED AUG 0 5 2015 CITY ADMINISTRATIONr:Ar:19.4 Atli-r$lc5 RECORDING REQUESTED BY and WHEN RECORDED MAIL TO: City of Vemon 4305 Santa Fe Avenue Vemon, CA 90058 Attn: City Clerk MAIL TAX STATEMENTS TO: Exempt COPY SPACE ABOVE THIS LINE RESERVED FOR RECORDER'S USE GRANT DEED APN. 51rlL - oz5 -ol+ DOCUMENTARY TRANSFER TAX IS NONE-NOT REQURED SEC. 11922 RE\'EIIUE TAXATION CODE. FOR VALUABLE CONSIDERATION, RECEIPT OF WHICH IS HEREBY ACKNOWLEDGED, 2448 E.25TH ST., LLC HEREBY GRANT(S) TO: (the " Grantor") City of Vernon, a body corporate and politic (the "Grantee'r) That certain real property (the "Conveyed Property"), as described in Exhibit ,'A,, atrached hereto and incorporated herein by this reference, and as more particularly shown on the map attached hereto as Exhibit "B" and incorporated herein by this reference. The Conveyed Property is a portion of the property owned in fee simple by the Grantor. The property is located in the City of Vernon, County of Los Angetes, Srate of California. out", 1- ll zots "Grantor" Nome, Title Signature A notary public or other omcer completing this certificate verifies only the identity ofthe individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that documelt. State of California Countvof L+s Arqger on J"sl1 11, >ot tr aefore me ft1 rclraet L. Gvw1 ,A/okrq PuuIc (rnsen Name oi NoEry ""o*. -o , '*r personally a ppea red before me Larrn Kaq who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/trer/their signature(s) on the instrument the person(s), or the entity upon behalf on which the person(s) acted, executed the instrument. I certi$ under PENALTY OF PERJURY under the laws of the State of California that the forgoing paragraph is true and correct. MICHAELLCO/EY Comm. ;1946516 Notary Public.Califotnia Lo5 Angeles County Comm. Expires Auq 30,20.l5 tXHIBIT,A, LEGAL DESCRIPTION OF STREET DEDICATION THAT PMNCN G LOT A S IHAT CATAIN GRAl.lT I)m, IN IHE OTY CF \ER.ICiI, CO,NI/ CF L6 NGB.ES STAIE G CNFffiUA DESCRE) N NSIRUIB'IT N0. 201506&1285 RECffi II\E 10, 2015 SFIOAI- RECMDS RECffiDS ff SAD LOS AI{GAIS COJNTT MCRE PARTIGJLAFTY DESCRBED AS FO.LOlrs EEOIS{I.IG AT lHE NffiIHEPST ffiNER 0F SAD LATD, SAID PONT MNG OI.I IHE SGJI}ERLY Ut{E 0F 261H SIFEET, OSTNT 50 FEEI SdTIHffiLY lrtrASlnD AT RGIT NG.ES FRor,l lHE SOJlllffitY Ul€ G ATCIINSO{ TGflA A D SqI{TA FE RALWAY AS $l0w.l O'l AIBIDD RECffiD CF S'R\EY, RECCRDO lN BOCK 161 PACE 76; IHE'ICE lHE FOIOUTNG COJRSES : 1 IHB{CT AI-C[.IG A O.R!E TO IHE RGIT lffiosE RADUS IS 52J.14 FET A RADIJ- UIf TO SAID PONT BEARS NMH 4T f' N. EAST FM Al.l ARC IB{GIH G 2266 FET I}RqJEI A CSIIRAL NO.E CF Z ts # TO A Ut€ PARATE- TO SAID SO,JTIffi-Y Ul\E G 26IH SIEI, DSTNT IO FET SOJIHEI-Y MEASIRED AT R TT ANCI-ES 2 IHSICE AI-Cire SAID PARAIIE- UII NffiIH 67 +7 09" II€SI 140.68 FET TO IHE BEOIN],IG G A TNGA{T O,R!E CO.ICAIE SO.JIIEASIERLY HAVNG A RADUS (F 40 FET, IHE SO,JIHIISIERIY AD CF SAID OJR\E Al-S0 BENG TINCB.IT T0 IHE NCRIHEASTEFTY Ui€ CF DOUfr SERVCE ROAD, AS NOlfl ESTAE.I$M, 3 I}E{CE SoUIHVTESIERLY ALol.lG SclD OJRIE Al.,l ARC LO.lGlH CF 9S.23 FEEr 1}RqJGH A CA{mAL /NOE 6 14T 07 59' TO IHE NM+EASIEIY UNE ff S{D DOIINE/ SMVCE ROAD , 4 ltE{cE ALoNG SCID NffiIHEASIERLY UNE NffiIH 29' 55 6 UESI 16.29 FEEr T0 IHE BEGIi{,{NG CF A TAI'IGO,,IT OJR\E CCNCA\E SO,JIHEASIERLY HAVNG A RADUS G (Im FEt IIE NCRIIEASIETY IMIMJS G SAID O.JRIE A-SO MNG TNGA.IT TO AFffiSIB{NCiE) SdJ]HMLY UNE G 261H SIRET 5 ITRICE NMHEASIMLY ALCI.IG SAID qJR!E Al ARC I.B'IGIH G 99.23 FET IHRO,GII A CO.ITRAL NS.E G 14T 07 5S TO lHE AFGHEIIICiD SUJIHERLY UNE G 26IH SIRET 6 I}E{CE ALO.IG SAID SOJIHERLY UIE SOJIH 6T 47 @' EAST 133.21 FEET TO IHE PONT CF BEONNING CO{TANING N AREA tr 2537 SqJARE FEI OR 0.0583 ACRE Mffi M ESS OR IG INAL STREET \ERNON, COUNTY DEDICATION OF LOS ANGELES, STATE OF CALIFORNIA SEABOARD ENGINEERING CO. 11OO S. BE\ERLY DRI\E. SlE 2O,I LOS ANGELES, CAUFORNIA 90035 rEL (J10) 277-7337 FAx (310) 277-7339 SEABOAROESEABOAROENGCO.CONJ PAGE I OF 1 DAIE o7/2s/15 ,,8,,sc lI l'= 2d EXHIBIT OU TH ERtY LINE OF TOPEKA & SANTA FE RAILWAYATCH INSON I6TH STREEI r-\ n r'\ 26TH or.) olr) s 67' 47'0S) P.0.8.z-l .\).u,i N.E.COR. OF LOT Ar) lJ I rNSu No. LEGEND: fZ sTREET DEDICATION -$.o. ?t--\ w \\\ PERCENTAGE OF LAND AREA AREA = 23,929 S.F. STREET DEDICATION AREA = 2,537 S.F. AREA GRANIED: 9.85% N 67'47' 09' a=2'28'54" R=523.14' L=22.66' STREET DEDICATION CITY OF \ERNON, COUNTY OF LOS ANGELES, STAIE OF CAUFORNIA SEABOARD ENGINEERING CO. I,IOO S. BE\€RLY DRI\€, SIE 201 LOS ANGELES, CAUFORNIA 90035:.::----:f----- lEL (310) 277-7337 FAx (310) 277-733sCHECKED BY yg I semoanoesere( ARDENGco.cofi | eece 1 oF 1 CERTIFICATE OF ACCEPTANCE (California Government Code S ection 27281) This is to cenify that interests in real property conveyed to or created in favor of the City of vernon by that certain Grant Deed dated July 14,2015, execured by 2448 Earl 25rh stre€t, LLC, a Califomia limited liability company, is hereby accepted by the undersigned ofFrcer on behalf of the City pursuant to the authority conferred by Minute order by the City Council of the City of Vemon on August 18, 2015, and the grantee consents to recordation thereof by its duly authorized officer. Dated:2015 CruYOFVERNON w. MICHAEL MCCORMICK, Mayor ATTEST: MARIA E. AYALA, City Clerk APPROVED AS TO FORM: BRIAN W. BYUN, Deputy City Auomey BOE-502-A(P1) REV 12 (05-13)ASSR-7o (REV 5-14) PRELIMINARY CHANGE OF OWNERSHIP REPORT To be completed by the transferee (buyer) prior to a transfer of subrect property, in accordance with secton zt8o.3 of the Revenue and Taxation Cde. A Politninary Change of OwE6hip Reporf must be filed with each conveyance in the county Recorder's ofrce for the county where the property is located. MUE AND MAIUNG AODRESS OF BIJYER,/TRANSFEREE lrrale ne.essrrycorsdE slo aE p.i,@ n?/llEald "Eitury addE!-s) FOR RECOROEB'S USE ONLY DOCUMENT NO / RECOROING DATE Valuing People and ProPetty ASSESSORS PARCEL NUUBER 5192-025-002 22148 EAST 25TH ST., LLC BUYER'S MYTIME TELEPHONE NI'ITEER (323) 58&881 1 BUYER'S EMAILAOORESS 4305 Santa Fe Avenue COPY cityclerk@ci.vemon.ca.us 3636 Downey Road CIry OF VERNON zrP cooE 90058 [VeS I NO :H3ffi#[1:l* as ftry principal residence. lfYES, please indicate the date of occupancy PART 1. TMNSFER IIiIFORUATION Please comptete all statements. This section contains possible exdusions from reassessment for @rlain types of transbrs YES NO E E O This t'ansEr is solely between spouses fadditi, or removal ol a spouse, death of a 9I,o.$e, diw@ setttement, etc.). registercd with the Califomia Secretary of SlE,te (a&ition or removat of I from grandparent(s) to grandchitd(ren). eath rson 55 years of age or older rson who is se\€rety disabted as defined by Revenue and Taxatjon Code o lf YES, please explain oon(s) holding tiue to theqrc,rF!tt:l (e'g ' anamechanqc upoo mafiage)' E E] , The recorded doqrme E E ' This transaction is recorded only as a requirement br financing purposes or to creatg, termanate, or reconvey a secunty inErest (e.9., @signer).lf YES, please explain: ! E , *" ,""o"* Oo*r"rt ,ro"ttre" " t r"tee of a trust, mortgage, or other similar doqlment K. This is a transfer of poperty. A 1. fo/from a revocable bust that may be revo r the benefit of ! ttre transferor, and/or E the tsansfuro mestic partner A 2. to/from a hust that may be revoked by th e a|so a joint tenant, and which names the other joint tenant(s) as beneficiaries when the creator/grantor/trustor dles ld 3. to/from an inevocabte bustforthe benefit of the : E creator/grantor/trustor and/or I grantor's/trustor's "por". I grantor'Mrustor's regstered domestic parher. L1| L This property is subject to a lease with a remarning lease brm of 35 years or more inctuding written options. @ fvf. .ni" is a transfer between parties in which proportional interests of the transfero(s) and transieree(s) in each and every parcel being transEned remain exacdy kl ru. nri" i" " transfer subject to subsi rements wrth govemmentaly imposed restrictons. [l'O. This transfer is to the first purcfia an actrve sotar energy system. * Please reigr lo the instructions for Part 1. Please provide any other information that will help the Assessor undelstand the naturc of the transfer. E ! tr ! E !! THIS DOCUMENT IS NOT SUBJECT TO PUBLIC INSPECTION IT BOE-5O2-A (P2) REV 12 (0113) ASSR 70 (REV 5-14) PART 2. OTHER TRANSFER INFORMATION Check and complete as adicable. ! uerger, stoc*, or parhership acquisit on (Form BoE-loGB) A Date of transfer, if other than recording date: B Type of transfer: ! errrctrase I rorectosrr." ! cin ! Trade or exchange I Contract of sale Date of contract I lnheritance. Date ofdeathi ! Sab/leaseback E Creation of a tease I Assignment of a tease I Termination of a lease. Date lease began: E] other. Please explain ,?s): - Remarning term in years ('l?cluding wiften options): C Onty a partial interest in the prop€rty was transfened. IVSS ! f'fO lf YES indicate the percentage hansfened; -qqg B C PART 3. PURCHASE PRICE AND TERMS OF SALE A Total purchase pric€ Cash down payment or value of trade or excfiange excluding closing costs First deed of trust @ -olo interest for- years Monthly payment $ E FHA LD'scounr Pornts) ! BanUsavings & Loan/Credrt l-l Battoon oavment $t-J E, F, G. ! crt-v"t ! VA LDiscount PornE) E Fixed rate ! Variabte rate union ! Loan canied by seller Check and complete as applicable. $_0-0 Amount $!Q- lmount $!! 4rn6u61 g 0 0D Second deed of trust @ -% interest for - years Monthly payment $ ! Fixed rate I vanaoe rate I Bank/Savings & Loan/credit Union ! Loan canied by seller I aatloon payment $Due date: ! orrect from seter ! El other Ptease exptain: Due date: From a family member-Relationship Dedication for street wideninq V\ras an lmprovement Bond or other public financing assumed by the OuVea [VeS [uO OustanOing oalance $ 9 9 Amount, if any, of real estate commission fees paid by the buyer which are not included ln the purchase pnce $ 0.0 The property was purchased:lThrough real estate broker Broker name:Phone number ' H Please explain any special terms, seller concessions, broker/agent bes waived, financing, and any other informatiln (e g , buyer assumed the existing loan balanc€) that would assist the Assessor in the valuaton of your property PART 4, PROPERTY INFORi'ATION A. Type of property transferred E Single-family residence fl ttrttlpte-famity ,esidence Number of units:- E Other Description (i e timber, mineral, waier rights, etc.) ntr Z !!! Check and complete as applicable. Co-op/Own-your-own Condominium 'l'imeshare Manuiactured home Unimproved lot CofimerciaUlndustrial A TIVeS 7NO Personal/busrness property, or incentives, provided by seller to buyer are included in the purchase price Examples of personal property are fumiture, farm equipment machinery etc. Examples ol incentives are dub memberships, etc Attach list if available. lfYES, enter the value of the personal/business property: $ C.lveS I f.fO Amanufactured home is inc]uded in the purchase price. lf YES, enter the value attributed to the manufactured homei $ f]VfS !ruO The manufactured home is subject to local property tax. lfNO, enterdecal number: o l-lvgs 7lruo The property produces rental or other income fr-YES, til'income rs trom: ! Lease/rent ! contract ! [cooa lncentives $ E The condition of the property at the time of sale was: Piease describe Mineral rights I [er.r"9. firan Poor CERTIFICATION I ceftify (or declare) that the foregoing and alt intonnation heregn, includng any actompanying stalements ot documents, is true and conect to lhe best of my knowledge and SIGNATURE OF -?-I TLE Director of Public Works IELEPHONE (323)583-8811 CITY OF The Assessol's office may contact you for additional information regarding this transaction. EMAILAOORESS BOE-502-A(P3) REV 12 (0S13) ASSR-7o (REV s-14) ADDITIONAL INFORMATION Please answer all questions tn each seclion, and sign and complete the certification before filing. This form may be used in all 5g Califomia@unties lf a document evidencing a change in ownership is presented to the Recorder br recordation without the concunent filing of a Preliminary Change of Ownership Repoft, the Recorder may charge an additional recording fee of twenty doflars ($20). NoTlcE: The property which you acquired may be subject to a supplemental assessment in an amount to be determined by the CountyAssessor Supplemental assessments are not paid by the tite or escrow company at close of escrow, and are not included in lendei impound accounts. You may be rrsponsible for the current or upcoming property taxes even if you do not rcceive the tar bill. NAME AND MAILING ADDRESS OF BUYER: Please make necessary corrections to the printed name and maiting address Enbr Assessor's Parcel Numbet name of seller, buyer's daytime telephone number, buyer's email address, and street adaress or phystcal location ofthe real property NOTE: Your telephone number andror email addless is yery imoortant lf ther€ is a qu€tion or a problem, the Assessot needs to be able to contact you. MAIL PROPERW TAX INFORMATION TO: Enter the name, address, city, state, and zip mde where property tax information shoutd be marled. This must be a valid mailing address. PRINCIPAL RESIOENCE: To help you determine your principal residence, consider (1) where you are registered to vote, (2) the home address on your automobile registration, and (3) where you nomally retum after work. lf afrer considering these criteria you are still uncertain, choose the place at rvhich you have spent the major portion of your time this year Check YES if the property is intended as your principal residence, and indicate the date of oc€upancy or intended occupancy. PART 'l: TRANSFER INFORIIATION lf you check YES to any of these statemenls, the Assessor may ask for supporting documentation. C,D,E, F: lfyou checked YES to any ofthese statements, you may qualiry irr a property tax reassessment exclusion, whicl may allow you to maintain your property's previous tax base. A claim form must be filed and all r€quirsments met in order to obtain any of thes€ exclusions. Contact the Assessor for claim forms. NOTE: lf you give someone money or property dunng your Ii€, you may be subjec{ to federal gift tax. You make a gift if you give property (including money), the use of property, or the right to receive income from property without expecting to receive something of at least equal value in retum. The bansfuror (donor) may be requircd to file Form 709, Federal Gift Tax Retum, with the lntemal Revenue Service if they make gifts in excess of the annual exclusion amount. G: Check YES if the reason frcr recording is to correci a name already on tite [e.g., Mary Jones, who acquired tite as Mary J Smith, is granting to Mary Jonesl. This is not fur use when a name is being removed ftom tifle. H: Check YES if the change involves a lender, who holds tite br security purposes on a loan, and who has no other beneficial interest in the property. "Beneficial interesf is the right to enjoy all the benefits of property ownership. Those benefits include flle right to use, sell, mortgage, or lease the property to another. A beneficial interest can be held by the beneficiary of a trust, while legal control of the trust is held by the trustee. l: A "cosigne/' is a third party to a mortgage/loan who provides a guarantee that a loan will be repaid. The cosigner signs an agreement with the lender stating that if the borrower fails to repay the loan, the cosigner will assume legal liability tor it il: This is primarily for use when the transbr is into, out of, or between legal entites such as partnerships, corporations, or limited liability companies. Check YES only if the interest held in each and every parcel being transfened remains exactly the same. N: Check YES only if property is subject to subsidized low-income housing requirements with govemmentally imposed restrictions;property may qualify for a restncted valuation method (i.e , may result in lower taxes). O: lfyou checked YES, you may qualiry for a new construction property tax exclusion. A claim form must be ftled and all requir€menB met in order to obtain tfte exclusion. Contact thg Assessor for a claim form, PART 2: OTHER TRANSFER INFORMATTON A: Th€ date of recording is rebuttably presumed to be the date of tlansier. lf you believe the date oftransbr was a different date (e.g., the transfer was by an unrecorded contracl, or a lease identifies a specfic start date), put the date you believe is the conect transfer date. lf it is not the date of recording, the Assessor may ask you itr supporting documentation B: Check the box that corresponds to the type of transfer. lf OTH ER rs checked, please provide a detailed descnption. Attach a separate sheet if necessary. BOE-502-A (P4) REV 12 (0t13)ASSR-7o (REV 5-14) PART 3: PURCHASE PRICE AND TERMS OF SALE It is important to complete this secton mmpletely and accurately. The reported purchase price and terms of sale are important Factors in determining the assessed value of the property, whrch is used to calculate your property iax bill. Your bllure to provide any required or requested intormation may result in an inaccurate assessment of the propeo and in an overpayment or underpayment of taxes. A. Enter the toial purchase price, not tncluding closing costs or mortgage insurance. ,.Mortgage insurance" is insurance proteding a lender against loss from a mortgagor's default, issued by the FHA or a private mortgage insurer B. Enter the amount of the down payment, whether paid in cash or by an exchange. lf through an exchange, exdude the closing costs. "Closing costs. are fees and expenses, over and above the pnce of the property, inculTed by the buyer and/or selle( which include title searches, lawyer's fees, survey charges, and document recording bes C- Enter the amount of the First Deed of Trust, if any. Check all the applicable boxes, and complete fi|e iniomation requested A .balloon payment- is the final installment of a loan to be paid in an amount that is disproportionately larger than the regular installment. D. Enter the amount of the Second Oeed of Trust, if any. Check all the applicable boxes, and complete the inbtmation requested- E. lf there was an assumption of an improvement bond or other public financing with a remaining balance, enter the outstanding balance, and mark the applicable box. An .improvement bond or other public financing- is a lien against real property due to property-specific improvement financing, such as green or solar construction financing, assessment dishict bonds, Mello-Roos (a brm offnancing that can be used by cities, counties and specjal districls to finance major impmvements and services within the particular disfid) or general tmprovement bonds, etc. Amounts br repayment of contraclual assessments are included with the annual property tax bill. F. Enter the amount of any real estate commission fees paid by the buyer which are not included in the purchase price. G. lf the properiy was purchased through a real estate broker, check that box and enEr the broker's name and phone number lf the property was purchased direc-Ey from the seller (who is not a tamily member of one of the parties purchasing the property), check the -Direcl from seller" box lfthe property was purchased direc{y ftom a memberof yourhmily, ora tamily member ofone ofthe parties who is purchasing the property, check the "From a family membef box and indicate the relationship of the family member (e.9., falher, aunt, cousin, etc.). lf the property was purchased by some other means (e-9., over the lntemet, at auction, etc.), check the 'OTHER" box and provide a detailed description (attach a separate sheet if necessary). H. Describe any special terms (e g , seller retains an unrecorded lifu estate in a portion of the property, etc.), seller concessions (e.9., seller agrees to replace roof, seller agrees to certain interior finish work, etc.), brokeriagent bes war\€d (e.9., fees waived by the broker/agent icr either the buyer or seller), linancing, buyer paid commissions, and any other inbrmation that will assist the Assessor in determining the value of the property. PART 4: PROPERTY INFOR AflON A. lndicate the property type or property right transterred. Property rights may include water, timber, mineral rights, etc B, Check YES if personal, business property or incentives are included in the purchase price in Part 3. Examples of personal or business property are tumiture, brm equipment, machinery, etc. Examples of incentives are dub memberships (goll health, etc.), ski lifr tickets, homeowners' dues, etc Attach a list of items and their purchase price allocation. An adjustrnent will not be made if a detailed list is not provided. C- Check YES if a manufactured home or homes are included in the purchase price. lndicate the purchase price direc{y attributable to each of the manufactured homes. lf the manuiachJred home is registered through the Departrnent of Motor Vehlcles in lieu of being subject to property taxes, check NO and enter the decal number. D- Check YES ifthe property was purchased or acquired with the intent to rent or lease it out to generate income, and indicate the source of that anticipated income Check NO if the property will not generate income, or was purchased with the rntent of being o\./ner-occupied E. Provide your opinion of the mndition of the property at the time of purchase. lf the property is in '{aif' or "pool' conditon, inciude a brief description of repair needed. RESOI-,UTION NO. A RESOLIITION OF THE CTTY COI]NCIL OF THE CITY OF VERNON APPROVING AND ACCEPTING THE GRANT DEED DEDICATING IN FEE A PORTTON OF THE PROPERTY LOCATED AT 3636 2511{ STREET WHEREAS, 2448 Easts 25ch Street, LLC (the "Grantor,. ) has offered to dedicate in fee a portion of the real property in t.he City commonly known as 3636 26xt Street in the City of Vernon, approximaEely 2,537 sqoare feeE in size, located at the corner of 26th street. and Downey Service Road, assessor,s parcel number 5L92-025-Of4 (the "Property', ) ; and WHEREAS, crantsor has defivered Eo the City a grant. deed dated July ]-4, 2015, dedicatsing in fee the Property to the City, a copy of which is attsached hereto as Exhibit A ( \crant. Deed,,),. and WHEREAS, Ehe dedication will meets the City of Vernon, s MasEer Plan of St.reet.s and will- be used for stsreets purposes by increasing the width of the rights-of-way; and WHEREAS, by memo dated Augus E L8, 20t5, the Director of Pul:Iic Works, Water & Development Services tras recommended that. the City accept. Ehe Grant Deed and approve executsion of the Certif icat.e of Acceptance. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS: SECTfON 1: The Citry Councif of tshe City of Vernon hereby finds and det.ermines that the ajcove recitals are true and correct.. SECTION 2: The City Council of Ehe City of Vernon finds that this action is exempts under the California Envirorrmental eualiEy Act (CEQA) , in accordance with CEeA Guidelines section 15301(c) because if any const.ruct.ion occurs as a resul-t of accepting and execut.ing t.he crant Deed, the work would merely involve negligible expansion of al existsing sEreet. SECTION 3: The City Cor:nc if of tshe City of Vernon hereby accepts the int.erests in real property conveyed tso tshe Citsy of Vernon by the Grant Deed, approves the Grants Deed and consents to the recordat.ion of the crane Deed. SECTfON 4: The City Council of the City of Vernon hereby authorizes the Mayor or Mayor Pro-Tem to execut.e Ehe Certificatse of Acceptance accepting the crant. Deed for. and on behalf of. the City of Vernon and the City Clerk, or Deputsy City C1erk, is hereby aut.horized t.o attest. thereto . SECTION 5: The City Council of the Ci.ty of Vernon hereby directs the City Administsrator, or his designee, to take whatever actions are deemed necessary or desiral',Ie for t.he purpose of implement.i-ng arld carrying out t.he purposes of this Resolution and t.he actsions herein approwed or authorized. SECTION 5: The Ci-Ey Council of the City of Vernon hereby aut.horizes tshe Director of Public Works, Iqater & Development Services, or his designee, to submit ehe Grant Deed t.o Ehe County Recorder. 2 SECTION 7: The City C1erk, or DepuEy City C1erk, of the city of vernon shall certify t.o the passage. approval and adoption of this resolution. and the City C]erk, or Deputy City C1erk, of the City of Vernon sha11 cause this resolution and the City Clerk, s, or Deputy city clerk's, certification to be ent.ered in the Fi-1e of Resolutions of Ehe Cou.ncil of this CiEy. APPROVED AND ADOPTED this 18Eh day of Aug-ust, 2015. Name: Title: Ylayor / Mayor Pro-Tem ATTEST: City Cl-erk / Deputy City Clerk APPROVED AS TO FORM: Brian Blrun, Dep 3 STATE OF CAIIFORNTA ) )ss COUNTY OF LOS ANGELES ) T,, City Clerk / Deputy Citsy Clerk of tshe City of Vernon, do hereby certify that the foregoing Resolution, being Resolut.ion No. , was duly passed, approved and adopted by the City Council of the CiEy of Vernon at a reg.ul-ar meeting: of the CiEy Council duly held on Tuesday, August 18, 2015, and thereafter was duly signed by Ehe Mayor or Mayor Pro-Tem of t.he City of Vernon. Executed t.his day of August., 2015, aE Vernon, Cal-ifornia. City Clerk / Deputy City Clerk (SEAL) 4 EXHIBIT A RECORDING REQUESTED BY and WFIEN RECORDED MAIL TO: City of Vemon 4305 Santa Fe Avenue Vernon, CA 90058 Attn: City Clerk MAIL TAX STATEMENTS TO: Exempt COPY SPACE ABOVE THIS LINE RESERVED FOR RECORDERS USE GRANT DEED ApN. 51rlz-o 5-ol+ DOCUMENTARYTRANSFER TAX IS NONE-NOT REQUIRED SE;C. 11922 REVEI\I]E TAXATION CODE. FOR VAIUABLE CONSIDERATION, RECEIPT OF WHICH IS HEREBY ACKNOWLEDGED, 2448 E.25 TH ST., LLC (the "Grantor,') HEREBY GRANT(S) TO: Cilv of Vernon, a body corporate and politic (the "Grantee") That certain real property (the "Conveyed koperty"), as described in Exhibit ,,A', attached hereto and incorporated herein by this reference, and as more particularly shown on the map attached hereto as Exhibit "B" and incorporated herein by this reference. The conveyed Property is a portion of the property owned in fee simple by the Grantor. The property is located in the City of Vernon, County of Los Angeles, State of Califomia. ox", 1-t4 zors "Grantor" Name, Title Signature A rotary public or other officer completing this cedificate verifies orly the identity of the individual who signed the document to which this certificate is attacheq and not the Euthfulness, accuracy, or validity ofthat documenl State of California Connwof Lu kreger on Jrtl.I tt, >otr beforeme 0trcAa€iL-6'q1 ,Mciar., P.rri,t (lnsert Name of Notary Pubuc ert lide) oersonallv anoeared bcfore rne Larrvrt Kai,r who proved to me on the basis of. satisfactory eyidence to be the person(s) whose name(s) iVare subscribed to the within instrument and actnowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signatr:re(s) on the instrument the person(s), or the entity upon behalf on which the person(s) acted executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the forgoing paragraph is true and correct. MICHAEL L COV€Y Comm.ll9465l6 Notary Publi<. California Cou nty u9 30, 2015 tXF] IBIT ,A, LEGAL DESCRIPTION OF STREET DEDICATION THAT pffiTro'r tr LoT A CF IHAT CERTAIN GRls.lT DEm, N tE ory G lERirO{ mNrr G LoS AI{GE.IS STAIE 6 CALJFffit{A DESCRBD lN INSIRU}iEIT N0. 2015068145 FECffiD LilE 10, 2015 SFIOAL REC0mS RECCRDS G SAD LoS N.rGBrS C0.,NTr [4GE PARIIOJLARLY DESCflBtr) AS FOIS& BEGI${I{G AT I}E NORI}EASI.CTFIER S SAID LAIO, SAJD PONT BEI,IG Oi lTE SO.,I}BLY UiE $ 261H SIFET, ilSTtr{T 50 FEEI SOJIHERTY iIEAS.RO AT RGIIT A}IOfS FRO' lHE SO,IITBLY UNE S ATGII.ISN TM<A AID SAIITA FE RALWAY, AS $l0l$l O{ AIE\OD RECffi tr S.JR\EY, RECffiDED lN B0O( 161 PI'GE 76; IIBICE TtE FOIOYilNG Cfl.RSB : 1 ITE,ICE ALCIIG A O-H:\E TO ]HE FICHI V#GE RAOUS IS 523.14 FET A RAI)IAL Ui€ TO SAID PONI BEARS NCRIH 4T 11' N EAST FM AN ARC I.B{GIH G 2266 FET l}frOJGH A CA{IRAL AiIG.E CF T E * TO A Ulf PARAIB- TO SAID SO..IHffiTY Ul€ G 26IH STRET, DSTAI{T 10 FEET SOJITBLY MEAST,RED AT RETT ANEES 2 IHB.I(E ALCiIG SA,ID PARAIB- UNE NGIH 67 47 09' Y€SI 140.68 FEt TO IHE BEqM{NG G A IAilGo{T O-R!E COiC,qlE SOJIHEAS]ERLY HAVNG A MOUS G 40 FEET, ftE SOJIHIEIIRLY S{D G SAID O.JR\E ALSO MNG TNCA{T IO lHE I'IGIHEASIMLY UT€ G DOINEY SERVCE MAD, AS MW ESTASJ9M, 3 ITENCE SUJITINESIERLY ALOIG SAID CIJRIE A}I ARC t.sIGlH CF 99.23 FEET I}frOJGH A CANIRAL AIIIGI.E G 14T 07 5f TO lHE NGI}EASIELY UI€ G SAD DOtlT€Y SffiVCE ROAD , 4 lt6rcE Af,SrG SAID MRTIEASIERT-Y Ut€ NffilH A'55 6 tES',I 16.29 FEEI T0 lIE mGIt|lNG G A TAI.IGA'IT qAlE COICAIE SOJIHEASIEFI-Y HAVNG A RADUS tr 40.m FEI IrE NGIIIASIEFIY IEFMNUS G SAD qJR!E ASO BBNG TNGO.IT IO AFCRHE{IIOE) SOJ]IffiI.Y UNE (F 26IH SIREET 5 IHBTICE NGIHEASTEI.Y ALO.IG SAIO OfiVE AI ARC I.B{GIH G 99.23 FEI- ITROJEI A CA.{TMI- A}{G.T G 142 07 59" rc fiE AFCREE.IIIOB SUfiIATY UNE OF 26IH S'IET 6 I}IBIICE ALO{G SAD SOJ]}ERLY U}E SOJIH 6T 47 N EAST 135zl FEET TO HE PONT G ffiOIS{NG. cc[.rTArNtNG AI{ AFEA G L537 SqJARE FEEr 0R 0.0583 ACRE MoRE 0R IESS c i{'J J,//cia+v, ORIGINAL DEDICATION OF LOS ANGELES, STATE OF CALIFORNIA STREET CITY OF VERNON, COUNTY SEABOARD ENGINEERING CO. 11OO S. BEVERLY ORIIE SlE 2OI LOS ANGEIES, CAUFORNIA 9OOJ5 rEL (310) 277-7337 FAx (310) 277-7339 SEABOARD€6EABOARDENGCO.COM DArE 07 /23/.t5 ,'8,SCIIE l'= 2d EXHIBIT OUTHIRLY LINE OF TOPEKA & SANTA FE RAILWAYATCHINSON 26THI6TH STREEI .\=: - -' nn T1oo c;r€ olr)I I P.0.8. N.E.COR. OF LOT A s 6r'-41 09 LEGEND: fn sTREET DEDTcATToN LAND AREA AREA = 23,929 S.F. SlREET DEDICATION AREA = 2,5J7 S.F. \\\ PERCENTAGE OF AREA GRANTED: 9.85% 67' 47' 09" a-l42'07'59" R:40.00' 1=gs.2J' a=2'28'54" R=523.14' L=22.66' STREET DEDICATION CITY OF VERNON, COUNTY OF LOS ANGELES, STATE OF CAUFORNIA SEABOARD ENGINEERING CO. 11OO S. BEVffiLY DRI\E, SIE 201 LOS ANGELES. CAUFORNIA 90035 rEL (310) 277-7337 FAx (3ro) 277-7339 SEABOARDGEABOARDENGCO.COM PAG€ I oF T CERTIFICATE OF ACCEPIANCE (Calffornia Government Code Section 27281) This is to certify that interests in real property conveyed to or created in favor of the City of Vemon by that certain Grant Deed dated Iuly 14, 2015, executed by 2448 East 25th Street, tIC, a California limited liability company, is hereby accepted by the undersigned offlrcer on behalf of the City pursuant to the authority conferred by Minute Order by the City Council of the City of Vemon on August 18, 2015, and the grantee consents to recordation thereof by its duly authorized officer. Dated:2015 CITYOFVERNON W. MICHAEL MCCORMICII Mayor ATTEST: MARIA E. AYALA, City Clerk APPROVEDAS TO FORM: BRIAN W. BYUN, Deputy City Attorney oa &/.u"1 ,P/r'/,,c- REEEIVED JUL 2 2 20t5 CITY ADMINISTRATION Honorable Mayor and City Council Daniel Calleros, Police Chief Pz- Ordinances Granting U.S. Tow, Inc. and Mr. C's Towing of South Gate Inc., A Franchise Towing Services Agreement. JUL 2 9 2C15 CITY CLER('S OFFICE STAFF REPORT VERNON POLICE DEPARTMENT August 4, 2015 TO: FROM: RE: Recommendation A. Find that approval of a services agreement with US Tow Inc. and Mr. C's Towing is exempt under the Califomia Environmental Quality Act (CEQA) in accordarce with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have a sigrrificant effect on the environment; and B. Hold the first reading of, and subsequently adopt, the proposed Ordinance granting to U.S. Tow, lnc., a franchise towing services agreement; and C. Hold the first reading of, and subsequently adopt, the proposed Ordinance ganting to Mr. C's Towing of South Gate, [nc., a franchise towing services agreement; and D. Authorize the Mayor to execute the franchise agreements on behalf of the City. Background On October 2,2012, the City Council adopted Ordinance No. 1198, establishing a selection process and franchise agreement system for official police towing services. In addition, the ordinance set forth minimum requirements and performance standards for equipment, facilities, personnel, and sewices for each tow company providing as needed vehicle towing and storage services requested by the Vemon Police Department C'VPD'). The ordinance also established procedures for suspending or revoking tow companies that fail to meet the minimum standards, violate federai, state, or local laws, or for any cause which the VPD determines is in the public interest, necessary or general welfare for the contract to continue. Page 1 of 2 On March 19,2015, the City Administrator authorized staff to issue a Request for Proposals C'RIP") seeking qualified licensed Tow Providers to enter into a franchise agreement to perform rotational police towing and storage services. The RFP specifically sought operators to fumish the VPD with licensed tow operations as may be required for a three (3) year period from the date of execution. The RFP was mailed to seven (7) local tow companies operating in the general area and was posted on the City's website. In addition, an RFP notice was published in the Vemon Sun news publication. The VPD received four (a) responses to the RFP. The four proposals were reviewed and assessed by an evaluation panel comprised of representatives from the VPD Administrative staff Before conducting an assessment of each of proposal, two members of the evaluation panel conducted on-site inspections of each of the four tow companies. Each proposal was evaluated using the criteria set in the RFP. The following criteria was used in evaluating each proposal: Evaluation Criteria Weishtins Experience 40% References 20o/o Responsiveness to the RFP, and quality and responsiveness of the proposal 10% Work Plan/Technical Description 30% After evaluating and rating the four proposals, the towing companies were ranked according to the scores ofthe evaluators. Based on the physical inspections, reference checks, and evaluation of the proposals, the evaluation panel is recommending the following two tow companies: US Tow Inc. and Mr. C's Towing as the top ranking companies: Companv Ranking US Tow lnc.1 Mr. C's Towing 2 HP Tow J Viertel's Official Police Garage 4 The City Attomey's Offrce has prepared a standard agreement for ofEcial police tow services. This agreorent establishes the City's requirernents and minimum performance standards, payment of fees, reporting requirements, and other terms and conditions related to vehicle towing and impound services for the VPD. The agreernent is for a term of three (3) years. Fiscal Impact There is no cost associated with execution of a franchise tow services agreernent. The towing services franchise does not increase the costs paid by vehicle owners, as these rates are fixed. Vehicle Code $ 12110(b) allows a public agency to collect administrative or franchise fee to recover its actual and reasonable costs incurred in connection with its towing program. Attachment(s) None Page 2 of 2 ORDTNA}ICE NO.L23L AN ORDTNANCE OF THE CITY COIINCIL OF THE CfTY OF VERNON GRANTTNG TO U.S. TOW, INC., A FFANCHISE TOWTNG SERVICES AGREEMENT WHEREAS, the City of Vernon (the ',City.) is a municipal corporation and a chartered city of the state of california organized and existing under its charter and the constitution of the st.ate of California; and WHEREAS, on October 2, 201_2, the City Council of lhe City of Vernon adopt.ed Ordinance No. 1198 adding Chapter 48 of the Vernon Municipal code to establ-ish a non-consensuaL franchise towing fee,. and WHEREAS, on or about. March 201-5, t.he police Chief issued a Request. for Proposafs for the City,s Franchise Tow Fee program; and WHEREAS, the City Council_ of t.he City of vernon desires t.o grant a Franchise Towing Serv.ices Agreement to U.S. Tow, Inc.,. and WHEREAS, t.he City Councif of the City of Vernon is authorized by city charter section 8.9 to granE a franchise in the City of vernon to any person, firm, corporation, or other ent.ity and to set terms, conditions, restrictions and limitations by ordinance. THE CITY COUNCIL OF THE CTTY OF VERNON HEREBY ORDAINS: SECT]ON 1: The City Council- of the City of Vernon hereby finds and determines t.hat the above recitals are true and correct. SECTION 2: GRANT OF FRANCHfSE. A non-exclusive franchise shal1 be, and the same is hereby granted by the City Council of the City of Vernon to U.S. Tow, Inc., its lawfuL successors or assigns to provide official non- consensual police towing services to the vernon police Department. said franchise is further described and depicted in the Franchise Towing services Agreement, in subst.antially the same form as att.ached hereto as Exhibit A and incorporat.ed herein by reference. SECTfON 3: FRANCHISE TERM. The franchise shall- endure in fulL force and effect for three (3) years, su-bject to the terms and conditions of the Franchise Towing Services Agreement . SECTION 4: FRANCHfSE FEE. The grantee of the franchise, during the 1ife thereof, will pay to the City five percent (5?) of the gross annual receipts of the grantee arising from the use, operation or possession of the franchise. SECTION 5: VERIFIED STATEMENT OF GROSS RECETPTS. The grantee shalI file with the City Clerk of the City, within tshree (3) months after t.he expiration of the calendar year, or fractional calendar year, fol-l-owing the date of the granting of t.his franchise, and within t.hree (3) months after Ehe expiration of each calendar year t.hereaf ter, a verified statement showing in detail- the totaL gross receipt.s for the grantee derived durlng the preceding calendar year, or such fractional calendar year, from the provision of official- police Eowing services within the limits of the City. The grantee shalL pay to the City within fifteen (15) days after t.he time for filing said statement. in lawfuI money of the United States, the aforesaid percentage of its gross recej-pE for the calendar year, or fract.ional cal-endar year, covered by said statement. Any negLect, omission or refusal by grantee to file said verified slatement., or to pay said percentage at the times or in the manner hereinbefore provided, shall constitute grounds for the decraration of forfeiture of lhis franchise and of all rights of grantee hereunder. However, 2 grantee has the abillty Lo cure under section 12. Further, the cit.y is responsible for insuring thats grantee has the appropriate financiar- institution information for elect.ronic transfer of t.he franchise fee in a t.imely manner. Any delays caused. by incorrect financial institut.ion information shaLl not const.itut.e grounds for the decl-aration of a forfeiture of this franchise. SECTION 5: WRITTEN ACCEPTANCE REQUIRED. The franchise grant.ed hereby shall not become effect.ive until written accept.ance thereof shaff have been filed by grantee with the CiUy Clerk. SECTTON 7: ABANDONMENT OF PRIOR FRANCHISES. The franchise grant.ed by this Ordinance is in l-ieu of a1l, other franchises, rights or privileges owned by the grantee, or by any successor of the grantee to any righEs under the franchise, for providing official police t.owing services throughout the l-imits of the City of Vernon as such limits exist at t.he time of the granting of the franchise or as they may thereafter, except any franchise derived under Section 19 of Article IX of the Constitution as that section existed prior to t.he amendment. thereof adopted October 10, 1911 . The acceptance of the franchise granted by this ordinance shall- operate as an abandonment of al_1 such franchises, rights, and privileges $rithin t.he limit.s of City as such l-imits at any time exist., in lieu of which the franchise is g,ranted by this Ordinance. SECTION 8: EMTNENT DOMAIN. The granting of the franchise shall_ not in any way impair affect the right of the Cit.y to acguire the property of the grantee purchase or condemnation, and nothing contained in this franchise shal1 be construed to contract away, modify or abridge ei-ther for a or by 3 term or in pe4)etuity the City, s right of eminent. domain. SECTION 9: VAIUE OF FRANCH]SE. By acceptance of the franchise, t.he grant.ee, for itself, its successors and assigns, agrees that in any proceeding of any character before any court, commission, administrat.ive body, board of arbiErat.ion or other public authori_ty, no greater vafue shal] be placed upon t.he franchise in excess of the cost to the grantee of the necessary publicaEion and any other sum paid by grantee to the city therefor at the time of acquisition. SECTION 10: NONCOMPLIANCE. If t.he grantee of the franchise granted by this Ordinance fails, neglect.s, or refuses t.o compl_y with any of the provisions or conditions prescribed in this ord.inance or the Franchise Act of 1937, and does not within ten (10) days after written demand for compliance begin t.he work of compliance, and afEer such beginning does not prosecute the work wit.h due diligence t.o completi-on, the City, by its City Council, may declare the franchise forfeited. The City may sue in its own name for t.he forfeiture of the franchise granted pursuant to this Ordinance, in the event of noncompliance wit.h any of the conditions thereof by the grantee, its successors, or assigns. sECTroN 11 : coNFoRMrry ro RULES AND srATUToRy REQUTREMENTS. The grantee of the franchise granted by this ordinance sha1l comply with al-I of the ordinances and ruLes adopted by the City council of the city of vernon in the exercise of its police powers and not in conffict. with the paramount authority of the state. All work undertaken or performed pursuant to the provisions of the franchise shal1 be of the standard required by 1aw, and by any other body or governmental- authority having jurisdiction in the premises. where not 4 in conffict with state 1aw, or other governmental authority having jurisdiction in t,he premises, tow serv.ices shall- be performed in accordance with the rules and regulations and ordinances of the city. SECTION 12: fNDEMNfFTCATION. The grantee shaff indemnify and officers, agents and employees, from all proximately resulting from any operations hol,d harmless the City, its liability for damages under this franchise. SECTfON 13: ASSIGNMENT. Grantee shall- not. assign or transfer any interest in the franchise without the express prior written consent and approvaf of City Councif. Any unauthorized assignment or transfer of Franchisee,s rights or obligations under this Agreement shaII be null_ and void and shalf constitute a material breach by Franchisee of this Agreement.. SECTION 14: PERFORMANCE BOND. (a) At. the option of the City, grant.ee shall either (a) reduce or eliminate any deductibles or self-insured retentions with respect to the City, it.s elected officiaLs, officers, employees, agents, representat ives , at.torneys, and volunt.eers,. or (b) f il-e with Ehe City Clerk a corporat.e surety bond running to City and guaranteeing payment of losses and related investigations, claim administration and defense expenses. The bond shaft be conditioned that grantee shal-f well and trufy observe, fuIfill, and perform each term and condition of the franchise, and that in case of any breach of condition of the bond the amount of the penal sum therein shall be recoverable. If City elects option (b) above, Grantee shalf file such bond within five (5) days after the adoption of t.his ordinance. (b) crantee shalI maint.ain the bond in ful1 force and effect throughout t.he term of this franchise, at grantee's sole 5 expense. The bond shall- be issued by an admitted surety insurer and comply with the requirements of the Bond and undertaking Law, codified in code of Civil Procedure sections 995. o1o et seq. This franchise shall be considered a ..license or permit.,, wit.hin the meaning of the Bond and Undertaking Law, sol-ely for purposes of application of such faw to the bonding reguirements of this section. SECTION 15: LIABILfTY. The grantee of the franchise under this Ordinance shalf be liabfe to the City for all damages proximately resulting from t.he fai]ure of the grantee to wel-I and fait.hfully observe and perform any provision of tshe franchise or any provision of t.he Franchise Act of 1937 . SECTION 15: RepeaL. Any ordinance or parts of an ordj_nance in conflict with this Ordinance are hereby repealed. SECTION 17: SeverabiLity. ff any chapter, article, section, su-bsect.ion, subdivision, paragraph, sentence. clause, phrase, or word in this Ordinance or any part thereof is for any reason held to be unconstitut.ional or invalid or ineffective by any court of competent jurisdiction, such decision shalf not affect the validity or effectiveness of the remaining portions of this Ordinance or any part thereof. The City Councif hereby declares that it. would have adopted this Ordinance and each chapter, art.icle, section, subsection, subdivision, paragraph, sentence, c]ause or phrase thereof, irrespective of the fact that any one or more chapters, articles, sections, subsections, subdivisions, paragraphs, sentences, clauses, phrases or words be decl-ared unconst.itutional , or invalid, or ineffective. 6 SECTTON l-8: Book of Ordinances. The City C1erk, or Deputy city clerk. shalf attest and certify to the adoption of this Ordinance and shafl cause this Ordinance and Ehe Cit.y Clerk, s, or Deputy City Cl-erk,s, cert.ification to be ent.ered in the Book of ordinances of t.he Council of thi-s city. The city C1erk, or Deputy city c1erk, shalI cause this ordinance to be published or posted as required by 1aw. SECTION 19: Effective Date. This Ordinance shaIl go into effect and be in fuI1 force and effect aE t2z 01 a.m. on the t.hirty_ first (31st) day af t.er its passage. APPROVED AND ADOPTED this day of , 2015. Name : Title: Mayor / Mayor Pro-Tem ATTEST: City Clerk / Oeputy City Clerk APPROVED AS TO FORM: Brian W. Byun, Deputy City At.torney 7 STATE OF CALIFORNIA ) ) ss COUNTY OF LOS ANGELES ) I,, City Clerk / Deput.y City Clerk of the City of Vernon, do hereby certify that t.he foregoj-ng Ordinance, being Ordinance No. 1231 was duly and regularly introduced at a regular meeting of the City Council of the City of Vernon, held in t.he Cit.y of Vernon on Tuesday, August 4, 2015, and t.hereaf ter adopted at a meeting of said City Council hel-d on Tuesday,, by the following vote: AYES: NOES : ABSENT: Council-members: Counc i ]members : Councifmembers: And thereafter was duly signed by the Mayor or Mayor pro-Tem of the City of Vernon. Executed this day of , 2015, at. Vernon, California. City Cl-erk / Deputy City Clerk ( SEAI, ) 8 EXHIBIT A CITY OF VERNON FRANCHISEE TOWING SERVICES AGREEMENT BY AND BETWEEN THE CITY OF VERNON AND U.S. TOW, INC- COVER PAGE Franchisee: Responsible Principal of Franchisee: Notice lnformation - Franchisee: Notice lnformation - City: Commencement Date: Termination Date: Consideration: Records Retention Period U.S. Tow, lnc. Moshe Ben Dayan, PresidenUCEO U.S. Tow, lnc. 21 19 East 25h Street Los Angeles, CA 90058 Attention: Moshe Ben Dayan, PresidenUCEO Phone: (213) 749-71O0 Facsimile: (21 3) 7 49-027 2 City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 Attention: Daniel Calleros, Police Chief Telephone: (323) 583-881 1 ext. 1 1a Facsimile: (323) 826- 1 481 No earlier than thirty-one (31) days after approval by City Council of City of Vernon of ordinance granting franchise to U.S. Tow, lnc. Three (3) years from Commencement Date, inclusive Payment is made by Franchisee to City pursuant to Section 3 of this Agreement. Payment is made to Franchisee by City pursuant to Section 5 of this Agreement. Three (3) years, pursuant to section 15.3 CITY OF VERNON FRANCHISEE TOWING SERVICES AGREEMENT BY AND BETWEEN THE CITY OF VERNON AND U.S. TOW, INC. This Agreement is made and entered into by and between the City of Vernon (,,City,'), a california charter city and california municipal corporation, and U.s. Tow, lnc. ('Franchisle), a Police Towing Company with its principal place of business at 21 19 East 25h Street, Los Angeles, CA 90058 (collectively, the "Parties") to provide for towing services to the City. The Parties agree as follows: RECITALS WHEREAS, Franchisee shall provide police towing services to the City of Vernon as set forth in the Request for Proposal issued in or about March 2015, Exhibit A, and Franchisee,s proposal to the city ("Proposal') dated Apdt 16, 2015, Exhibit B, both of which are attached to and incorporated into this Agreement, by reference. WHEREAS, pursuant to Chapter 48 of the Vernon Municipal Code, Franchlsee has applied for a Police Towing Franchise ('Franchise"); and WHEREAS, the City Council has determined that Franchisee has demonstrated compliance with Chapter 48 of the Vernon Municipal Code and has agreed to comply with all provisions of that Chapter; and WHEREAS, it is required that City and Franchisee enter into this Franchise Towing Services Agreement ("Agreement") for police towing services in the City of Vernon; and WHEREAS, additional conditions have been imposed upon this grant of Franchise. NOW, THEREFORE, the Parties do hereby agree as fo ows: Section 1. GRANT OF FRANCHISE. Subject to approval by the City Council ofthe City of Vernon of an ordinance granting the franchise and to the requisite thirty-one (31) days' waiting period before such ordinance becomes effective, City grants to Franchisee a Police Towing Franchise authorizing Franchisee to engage in the business of Police Towing as set forth in chapter 48 of the vernon Municipal Code in the City of Vernon and to use the public streets and rights of way for such purpose. This grant is pursuant to the City's Request for Proposal and to Franchisee's proposal for the Franchise. Franchisee is subject to the terms and conditions specified in chapter 8.9 of the Charter of the City of Vernon, the provisions of Chapter 48 of the Vernon Municipal Code, the terms and conditions specified in all related resolutions, the terms and conditions of this Agreement, the representations and assurances in Franchisee's applicalion for the Franchise. Section 2. TERM OF FRANCHTSE. The term of this Franchise granted to Franchisee shall be for three (3) years, effective from thirty-one (31) days after the date upon which the City Council of the City of Vernon 2 approves the ordinance granting the Franchise (the "Effective Date") to the date that is three (3) years from the Effective Date, inclusive. Section 3. FMNCHISE FEES. - 3.1 During the term of the Franchise, Franchlsee shall pay a franchise fee to city in an amount equal to 5% of Franchisee's gross annual receipts arising from the use, operation or possession ofthe Franchise, which fees shall be assessed from the date on which the ordinance granting this Franchise became effective and in accordance with Section 4B.B of the vernon Municlpal code and any Resolution adopted by the city council and in such other amounts as are set forth in any subsequent resolutions that may be adopted by the city council at any time during the term of the Agreement. 3.2 The Franchisee shall file with the City Cterk of the City, within three (3) months after the expiration of the calendar year, or fractional calendar year, following the date of the granting of this franchise, and within three (3) months after the expiration of each calendar year thereafter, a verified statement showing in detail the total gross receipts for the Franchisee derived during the preceding calendar year, or such fractional calendar year, from the provision of official police towing services within the limits of the city. The Franchisee shall pay to the city within lifteen (15) days after the time for filing said statement, in lawful money of the united States, the aforesaid percentage of its gross receipt for the calendar year, or fractional calendar year, covered by said statement. Any neglect, omission or refusal by Franchisee to file said verified statement, or to pay said percentage at the times or in the manner hereinbefore provided, shall constitute grounds for the declaration of forfeiture of this Franchise and of all rights of Franchisee hereunder pursuant to the procedures set forth in Sections 11 and 12 herein. However, Franchisee has the ability to cure. Further, the City is responsible for insuring that Franchisee has the appropriate financial institution information for electronic transfer of the franchise fee in a timely manner. Any delays caused by incorrect financial institution information shall not constitute grounds for the declaration of a forfeiture of this Franchise. 3.3 Franchisee shall timely pay all required franchise fees to: City of Vernon Attention: Finance Director 4305 Santa Fe Avenue Vernon, CA 90058 Each payment shall be accompanied by a written statement, verified by the Franchisee or a duly authorized representative of the Franchise, showing in such form and detail as the Finance Director of the city of vernon may prescribe, the calculation of the franchise fee payable by the Franchisee and such other information as the Finance Director may require as material to a determination of the amount due. 3.4 The first payment of the franchise fee will be due on September 15, 201s,-and payments shall be due monthly thereafter on the 1sth day of each month. 3.5 When Franchisee remits franchise fees to the City, such franchise fees shall be deemed timely paid only if delivered or postmarked on or before the due date. lf fees are not timely paid, Franchisee shall be subject to suspension or termination of the Franchise pursuant to Section 14 of this Agreement and/or to any other penalties which may be established and assessed by the city, including, but without limitation, late fees assessed at the rate of five percent (5%). Section 4. TOWING SERV|CES. 4.1 Franchisee shall provide Police Towing services, as set forth in Exhibit A, which is the city's Request for Proposals for official police Tow services, and which includes, but without limitation, strictly adhering to the eligibility requirements, operating regulations, fees schedules, standards for tow truck equipment, standard rules of operation, response time, inspection, information regarding new or terminated tow truck drivers, tow driver training, and as set forth in Exhibit B which is Franchisee's response to the City's Request for proposali. All services by Franchisee shall comply will all provisions of federal, state and local law and regulation, including, but without limitation Chapter 48 of the Vernon Municipal Code. 4.2 Franchisee understands and agrees that, although the City is granting it a franchise as a police towing service, the City may requisltion towing services from other service providers as set forth in Section 48.12 of the Vemon Municipal Code, or if Franchisee is otherwise unavailable for any reason, in lhe reasonable discretion of the Vernon Chief of Police and including, but without limitation, suspension or termination of the Franchisee. Section 5. MTES. CHARGES AND PAYMENT. 5.1 The rates and charges for towing and storage in connection with this Franchise shall be established by the Franchlsee. The prevailing rates prescribed by the southern Division of the california Highway Patrol, the Los Angeles police Department, and the Los Angeles County Sheriff will be considered when establishing these rates. The rate per impound shall be $140.00 and the storage charge shall be $40.00 per day, unless or until otherwise modified by the City. A sign showing the approved rates and charges shall be conspicuously posted in the Franchisee's tow office and shall be posted in a conspicuous place in the interior of each tow truck operated by Franchisee. Franchisee shall provide vehicle owners the option of payment by MasterCard and Visa. Franchisee must provide for after-hours releases of vehicles, and may collect an after-hour release fee. As part of the award of franchise the Franchisee will be requested to establish an after-hours release fee not to exceed % of the impound fee in addition to other established fees. Section 6. REPORTS. Franchisee shall file a monthly towing report with the Chief of police along with payment of its monthly franchise fees. The report shall be submitted to: Vernon Police Department Attention: Police Chief 4305 Santa Fe Avenue Vernon, CA 90058 The report shall include the information required by section 48.10(H) of the vernon Municipal Code for Franchisee and its subcontractors, certified as true and correct under penalty of perjury by a responsible owner or official of the Franchisee. 4 Section 7. FRANCHISEE'S RECORDS. 7.1 The Franchisee shall maintain accurate and complete books and accounls of all revenues and income arising out of its operations under the Franchise and in a manner, which conforms to generally accepted accounting principles. Franchisee's books, accounts and records, arising out of or related to its operation under the Franchise, shall at all times be open to inspection, examination and audit by authorized officers, employees and agents ofthe city. such records shall be kept at Franchisee's place of business shown in this Agreement for receipt of notices. 7 .2 Franchisee shall require its subcontractors, if any, who perform police Towing services in connection with the Franchise to keep and maintain books of account and other records showing all business transactions conducted by such subcontractors in connection with the Franchise. Franchisee agrees to use its best efforts to avoid duplication of reporting between Franchisee and its subcontractors. Section 8. TOW VEHICLE AND DR|VER. REPORTtNG. COMPL|ANCE. AND IDENTIFICATION. 8.1 Franchisee shall maintain on file with the City, a complete and accurate listing of every vehicle operated by Franchisee for police towing services. Franchisee shall certify, in a form acceptable to city, that every such vehicle conforms with regional and state vehicle emission standards ("emission standards'), and shall provide documentation of compliance on written request of the city. Franchisee understands and agrees that failure to comply with emission standards may result in suspension, termination or non-renewal of a Franchise. 8.2 Every vehicle operated by Franchisee and for police Towing services in the city shall bear the following identification: Franchisee's trade name, monogram or insignia, the Franchise vehicle number, together with Franchisee's telephone number painted on both sides of the vehicle. All lettering mentioned in this paragraph shall be not less than 2-114" in height and not less than 5/6" stroke. The Franchisee agrees to remove the Franchise vehicle number and all other information within 30 calendar days after the Franchise is terminated or the vehicle is sold, transferred or taken out of service. 8.3 Franchisee shall file with the Vernon police Department, lhe name, address, date of birth, driver's license number, and all identilication required of any tow unit driver working for Franchisee, whether as an employee or as a contractor, which information shall be filed not later than ten (10) business days following the effective date of employment or engagement. Franchisee shall also notify the Vernon police Department within ten (10) business days of the following occurrences: the license suspension of any tow unit driver, and the end of employment, or engagement, of any tow unit driver with Franchisee. Section 9. INDEMNIF|CAT|ON OF CtTy. 9.1 Franchisee shall indemnify and hold the City harmless from and against any and all loss, damages, liability, claims, suits, costs and expenses, fines, charges or penalties whatsoever, including reasonable attomey's fees, regardless of the merit or outcome of any such claim or suit, arising from or in any manner related to the services provided or business conducted under chapter 48 of the vemon Municipal code or otherwlse pursuant to this Agreement. ( 9.2 Franchisee shall indemnify the City, defend with counsel approved by the City, protect and hold harmless the City, its officers, employees, agents, assigns,'and any - successor or successors to the city's interest from and against all claims, actual damages (including but not limited to special and consequential damages), natural resources damage, punitive damages, injuries, costs, response, remediation and removal costs, losses, demands, debts, liens, liabilities, causes of action, suits, legal or administrative proceedings, interest, fines and charges, penalties and expenses (including, but not limited to, attorneys'and expert witness fees and costs incurred in connection with defending against any ofthe foregoing or in enforcing this indemnity) of any kind whatsoever paid, incurred or suffered by, or asserted against, the city or its officers, employees, agents or the Franchisee arising from or attributable to any repair, remediation, cleanup or detoxification, or preparation and implementation of any removal, remedial, response, or closure or other plan (regardless of whether undertaken due to governmental action) concerning any hazardous substance or hazardous waste at any place where the Franchisee stores or dispose of solid or hazardous waste. The foregoing indemnity is intended to operate as an Agreement pursuant to the comprehensive Environmental Response, compensation and Liability Act, 42 united states code section g607, and california Health and Safety Code Section 25364, and any successor provisions, to insure, protect, hold harmless. and indemnify the City from liability. Sectionl0. INSURANCEREQUIREMENTS. 10.1 Franchisee shall, at its sole cost and expense, procure and maintain in full force and effect, throughout the term of this Agreement, inclusive of any renewal term granted by City, insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance ofthe services hereunder by the Franchisee, its agents, representatives, employees or subcontractors. Franchisee shall procure and maintain insurance policies of the types and meeting the requirements set forth below, and shall provide to the City a Certificate of lnsurance, or other such evidence reasonably acceptable to the City, verifying the existence of such policies: 10.2 Minimum Scooe of lnsurance Coveraoe. Franchisee shall procure and maintain policies of insurance with minimum scopes of coverage AT LEAST as broad as the following: (a) ComprehensiveGeneralLiabilitylnsurance. (b) ComprehensiveVehicleLiabilitylnsurance. (c) Workers' Compensation lnsurance as required by the State of California and Employer's Liability lnsurance. 10.3 Minimum Limits. Vendor shall maintain insurance with minimum limits NO LESS THAN the following: (a) General Liability of Two Million Dollars (92,000,000) for each occurrence and in the aggregate, combined slngle limit, against any bodily injury, death, personal injury, or property damage. In Comprehensive General Liability lnsurance or other form in which a general aggregate limit is used, the general limit shall apply separately to this Agreement or the general limit shall be TWICE the required occurrence limit. o (b) Automoblle Liabirity of one Mi ion Do ars ($1,ooo,ooo) per accident for bodiry injury and property damage. (c) Garage Keepers Legal Liability coverage with minimum limits of Two Hundred Fifty Thousand Dollars (92S0,000) per occurrence. (d) Employer's Liabitity of One Million Dollars ($1,OOO,0OO) per accident for bodity injury or disease. (e) Worker's Compensation and Employer,s Llability lnsurance in an amount required by law. 1O.4 Deductibles. Any deductibles or self-insured retentions must be declared to and approved by the City. At the op on of the City, Franchisee shall either: (a) Reduce or eliminate such deductibles or self-insured retentions with respect to the City, its elected and appointed officials, officers, employees, agents, representatives, attorneys, and volunteers; OR (b) Procure a bond, guaranteeing payment of losses and related investigations, claim administration and defense expenses. Underthis option, Franchisee shall file such bond within five (5) days after the adoption of the ordinance approving this Agreement. Franchisee shall mainlain the bond in full force and effect throughout the term ofthe Franchise, at Franchisee's sole expense. The bond shall be issued by an admitted surety insurer and comply with the requirements of the Bond and Undertaking Law, codified in Code of Civil procedure Sections 995.010 et seq. This franchise shall be considered a "license or permif,within the meaning ofthe Bond and Undertaking Law, solely for purposes of application of such law to the bonding requirements of this section. 10.5 Reouired Endorsements. All of the policies required by this Agreement shall contain, or be endorsed to contain, the following provisions: (a) City, its elected and appointed officials, officers, employees, agents, representatives, attomeys and volunteers shall be named as additional insured parties, and the policies shall specifically state that the coverage contained in the policies affords insurance pursuant to the terms and conditions as set forth in lhis Agreement. (b) The insurance coverage provided by the Franchisee shall be primary to any coverage available to the City. Any insurance or se[f-insurance maintained by City, its offlcers, officials, employees or volunteers shall be in excess of Franchisee's own insurance and shall not contribute with it. (c) The insurance policies shall contain no special limitations on the scope of protection afforded to the City, its elected and appointed officials, officers. employees, agents, representatives, attorneys or volunteers. Further, the policies shall expressly waive the right of subrogation against City, its elected and appointed officials, officers, employees, agents, representatives, attorneys or volunteers. 7 (d) Any failure to comply with reporting or other provisions of the policies including breaches of warranties sha not affect coverage provided to the city, its elected and appointed officials, officers, employees, aients, representativei, attorneys or volunteers. (e) The insurance coverage shalt apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer,s liability. (f) Each insurance policy required by this section shall be endorsed to state that coverage SHALL NOT be suspended, voided, and/or canceled by either party, and that there shall be no reduction in the amount of coverage or in the limits applicable thereto EXCEPT after thirty (30) days prior written notice has been given to the City, said written notice to be delivered by U.S. Certified Mail, Return Receipt Requested addressed to the City Attorney and City Finance Director. (S) ln its sole discretion, the City may waive all or some portion of the above referenced insurance if such waiver is in writing and executed by City,s Finance Director. 10.6 Required lnsurance Ratino. Any insurance policy required by this Agreement shall be placed with an insurer admitted in the State of California with a current A.M. Bests rating of NO LESS THAN B+:Vll in the latest edition of Best's lnsurance Guide. 10.7 Oriqinal Certificates Reouired. At all times during the term of this Agreement, Franchisee shall maintain on file with the city's Finance Director a certificate or certificates of insurance. said certificate or certmcates of insurance shall show that the aforesaid policies are in effect in the required amounts and shall contain each ofthe endorsements as set forth in section 10.3. Franchisee shall, prior to commencement of work under this Agreement, file with the City Finance Director the original certiflcates effecting coverage required by this section of this Agreement. The endorsements are to be signed by the person authorized by that insurer to bind coverage on its behalf. The endorsements are to be received and approved by City before Franchisee commences operation under the terms of this Agreement 10.8 Failure to Maintain Reouired lnsurance. Franchisee agrees that if it fails to keep the aforesaid insurance policies in full force and effect the city may, at its sole option, either (i) immediately terminate this Agreement or, (ii) if insurance is available at a reasonable cost, the City may take out the necessary insurance and pay, at Franchisee,s cost and expense, the premium thereon. Section 'l 1. TERMINATTON AND SUSPENStON. The City may terminate this Agreement, without cause, by giving the Franchisee thirty (30) days' written notice of such termination and the effective date thereof. The City may terminate this Agreement, with cause, by giving the Franchisee (10) days' written notice of such termination and the effective date thereof. Cancellation for cause shall be at the discretion of the city and shall be, but is not limited to, failure to supply the materials, equlpment or service specified within the time allowed oI within the terms, conditions or provisions of this Agreement. The Franchisee may not cancel this Agreement without prior written consent from the-vernon Chief of Police. I Section 12. TEMPORARY SUSpENStON. ln addition to termination or suspension as set forth in Section 1 1, above, the Chief of Police may temporarily suspend any Franchisee without a hearing, whenever the continued operation by the Franchisee would constitute a danger to public health, safety, welfare or public morals, including, without limitation, where there is a failure to maintain the minimum levels and standards of liability insurance or claims reserve or failure to keep in full force and effect any applicable licenses or permits required by federal, state, local law, or regulation. The notice of temporary suspension may be personally delivered to the party named and to the address given on the application pursuant to which such Franchise was issued and to the notice address stated herein, lf different, or, mailed by registered or certified mail to the party named at the address given on the application pursuant to which such Franchise was issued and to the notice address stated herein, if different. Notwithstanding other notice provisions of thls Agreement, the temporary suspension is effeclive upon the earlier of either receipt or the expiration of three (3) days from the date of mailing. The notice of temporary suspension shall include a notice of the date and time for termination hearing and all other information required by the Vernon Municipal Code. The temporary suspension shall remain effective until the decision on suspension or termination is made unless the suspension is lifted by written notice of the Chief of Police. Section '13. ACCEPTANCE. WAIVER. Franchisee agrees to be bound by and comply wlth all the requirements of Chapter 48 and this Agreement. By entering into this Agreement, Franchisee waives, to the maximum enent permitted by law, Franchisee's right to challenge the terms of this Agreement and of Chapter 4B under federal, state or local law, or under administrative regulation, as such laws and regulations exist as of the date of signing of this Agreement. Section 14. GENERAL TERMS AND CONDITIONS. 14.1 INDEPENDENT STATUS. lt is understood that in the performance under this Agreement, Franchisee shall be, and is, an independent operator, and is not an agent, contractor, or employee of City and shall furnish services in its own manner and method, except as required by this Agreement. Further, Franchisee has and shall retain the right to exercise full control over the employment, direction, compensation and discharge of all persons employed by Franchisee in its business operations. Franchisee shall be solely responsible for, and shall indemnify, defend and save City harmless from all matters relating to the payment of its employees, including compliance with social security, withholding and all other wages, salaries, benefits, taxes, exactions, and regulations of any nature whatsoever. Franchisee acknowledges that Franchisee and any subcontractors, agents or employees are not entifled 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. 14.2 FMNCHISEE NOT AGENT. Franchisee 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. 14.3 WAIVER. The City's waiver of any term, condition, breach or defauh 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. I 14.4 NO ASSIGNMENT. The Franchisee shall not assign or transfer any interest in this Agreement without the express prior written consent and approval of City Council. Any unauthorized assignment or transfer of Franchisee's rights or obligations under this Agreement shall be null and void and shall constitute a material breach by Franchisee of this Agreement. 14.5 COMPLIANCE WITH LAWS. Franchisee shall comply with all Federal, State, County and City laws, ordinances, resolutions, rules and regulations, which are, as amended from time to time, incorporated herein and applicable to the performance hereof. 14.6 ATTORNEY'S FEES. lf any action at law or in equity is brought to enforce or interpret the terms of this Agreement, the prevaillng 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. 14.7 INTERPRETATION. 14.7.1 Applicable Law. This Agreement, and the rights and duties of the parties hereunder (both procedural and substantive), shall be governed and construed according to the laws of the State of California, without regard to the conflict of laws provisions therein. 14.7.2 Entire Aoreement. This Agreement, including any Exhibits attached hereto and any documents explicitly referenced herein, 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). 14.7.3 Written Amendment. This Agreement may only be changed by written amendment signed by Franchisee 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. 14.7.4 Severabilitv. lf 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. 14.7.5 Choice of Forum. The parties hereby agree that this Agreement is entered into and is to be performed in the city of Vernon and that all claims or controversies arising out of or related to performance under this Agreement shall be submitted to and resolved in a forum within the County of Los Angeles at a place to be determined by the rules of the forum. 14.7.6 Order of Precedence. ln 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 order of precedence is as follows: charter of the city of vernon, the Vernon Municipal Code, the ordinance granting this Franchise, resolutions ofthe City of Vernon, this Agreement, the City's Request for Proposals for Official police Towing Services, 10- and Franchisee's Response to the City's Request for Proposals for Official Police Towing Services. 14.7.7 Duolicate Orioinals. There shall be two (2) fully signed copies of this Agreement, each of which shall be deemed an original. 14.8 AUTHORITY OF FMNCHISEE. The Franchisee hereby represents and warrants to the City that the Franchisee 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. 14.9 EMINENT DOMAIN. The granting of the Franchise shall not in any way impair or affect the right of the City to acquire the property of the Franchisee by purchase or condemnation, and nothing contained in this Franchise shall be construed to contract away, modify or abridge either for a term or in perpetuity the City's right of eminent domain. 14.10 VALUE OF FRANCHISE. By acceptance ofthe Franchise, the Franchisee, for itself, its successors and assigns, agrees that in any proceeding of any character before any court, commission, administrative body, board of arbitration or other public authority, no greater value shall be placed upon the franchise in excess of the cost to the Franchisee ofthe necessary publication and any other sum paid by Franchisee to the City therefor at the time of acquisition. Section 15. ADDITIONALASSURANCES. 15.1 EQUAL EMPLOYMENT OPPORTUNITY PRACTICES. Franchisee certifies and represents that, during the performance of this Agreement, Franchisee and any other parties with whom it may subcontract 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, religion, color, national origin, ancestry, disability, sex, age, medical condition, marital status. Franchisee further certifies that it will not maintain any segregated facilities. Franchisee further agrees to comply with The Equal Employment Opportunity Practices provisions as set forth in Exhibit .C'. 15.2 BUSINESS L|CENSES. Franchisee sha obtain, and pay any and aI costs associated therewith, any Vernon Business License, which may be required by the Vernon Municipal Code and all permits, and licenses applicable to Franchisee,s operations under this Franchise, which are required of Franchisee by any governmental agency. 15.3 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 Franchisee'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 Franchisee is properly enti ed under the Agreement or for other purposes relating to the Agreement. The Franchisee shall maintain and preserve all such records for a period of at least 3 years after termination of the Agreement. The Franchisee shall maintain all such records in the city of vernon. lf not, the Franchisee shall, upon request, prompfly deliver the -11 - records to the City of Vemon 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 ofthe city) expenses for personal, salaries, private auditors, travel, lodging, meals and overhead. 15.4 CONFLICT. Franchisee hereby represents, warrants and certifies that no member, officer or employee of the Franchisee 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 exlent permitted by law. Section 16. LIVING WAGES. Franchisee, and any subcontracto(s), shall comply with the City,s Living Wage Ordinance. The current Living Wage Standards are set forth in Exhibit,,D',. Upon the City,s request, certified payroll records shall promptly be provided to the City. Section 17. NOTICES. Except as otherwise provided in this Agreement, all notices required by this Agreement or by chapter 48 of the vernon Municipal code shall be given by personal service or by deposit in the United States mail, postage pre-paid and return receipt requested, addressed to the parties as follows: To City: Vemon Police Department Attention: Police Chief 4305 Santa Fe Avenue Vernon, CA 90058 Copies to: City of Vernon Attention: Finance Director 4305 Santa Fe Avenue Vernon, CA 90058 Franchisee: U.S. Tow, lnc. Attention: Moshe Ben Dayan, PresidenvCEO 21 19 East 25$ Street Los Angeles, CA 90058 Notice shall be deemed effective on the date personally served or, if mailed, three days after the date deposited in the mail. [Signatures Begin on Next Page]. -12- lN WITNESS WHEREOF, the Parties hereto have caused this Agreemenl to be executed by their duly authorized representatives as ofthe date set forth below. City of Vernon, a California charter City U.S. Tow, lnc., a California corporation and California municipal corporation DATED: DATED: W. Michael McCormick, Mayor ATTEST: Maria E. Ayala, City Clerk APPROVED AS TO FORM: Brian Byun, Deputy City Attorney By: Name: Title: By: Name: - 13 - EXHIBIT A EXHIBIT A REOUEST FOR PROPOSALS -14- City of Vernon Request for Proposals (RFP) Franchise Tow Fee Program City of Vernon Police Department 4305 Santa Fe Avenue, Vernon, CA 90058 Phone: (323) 587-St7I City of Vemon Franchise Tow Fee Pmgram Request for Proposals 1. INTRODUCTION ANO PROJECT The City of Vemon seeks proposals hom qualified bidders to enler into a franchise agreement to perform rotrational polic€ towing and storage services. Services to be performed by the selected contractor anclude vehicle towing and impound seivices as drrected by the Vernon Police Departmenl Based on the quality of the proposals received, the City may consider awardirE a single tow franchise contract, or multlple tow francfiise mnfacts using a call-for-service rotation- The City does not expect to aware more than two (2) ftandlise agreements under the rotational sysEm, although City Council resenes the right to award contrEcts at its sole discretion, based on the proposals submitted, The City will select no more than two (2) tow service companies, based on demonstrated competence and a cost effective approach to design, conduct, and assist in the removal of vehicles which are apparently abandoned, or driven by unlicensed drivers, or drivers driving on suspended licenses, or involved in lratfic collisions, or vehicles creating a traffic hazard due lo mechanical failures. To be eligible for consideration, the tow service companys place of business and vehicle storage facility must be located within a seven (7) milB radius of the Vernon City Hall, located at 4305 Santa Fe Avenue, Vemon CA 9005E. 2. BACKGROUND The City of Vemon nlas founded in '1905, is approximataly 5.2 square miles in size and is located approximately 5 miles southeasl of downtown Los Angeles Califomia. O\rer its lorp history Vemon hai been developed as an industrial comriunity. At the tum of the 20n century the lands that make up Vemon were comprised largeiy of farmlends. The presence of three mapr rail lines in the area led influential business and property owners to encourage the railroad companies to run spur lines onto the farmlands. These rail extensions enabled the creation of an "exclusively industrial' city. By the 1920's Vemon uras attracting large st ckyards and meatpacking facilities. ln the 1930's Vemon became the location of choice for many heavy industrial plants. As oconomic condiuons changed over the decades, these large sc€le jndustrial operations have relocated out of Southem Califomia and Vemon has attracted smaller, lighter industrial facilities. The Cigy's business friendly environment, low cost utilities and key location for trucking and rail transport continue to position Verpn as an ideal location br industrial uses. City Government: The City Council consists of five members, elecled at-large, who sene Rve-)rear staggered terms. The City Council annually appoints a Mayor and a Mayor Pro Tem fiom its own membership to serve one-)ear terms. 2 City ofVernon Franchise Tow Fee Program Request for Proposals Labor Force: Vemon has approximately 250 employees, and its departments include a Fire Department, Police Department, Financo Department, Public Works, Water and Det elopment Services Departm€nt, Gas and Electric Department and Health and Environmental Control Department. Present bargaining units recognized include the Vemon Police Ofiicers Beneft Association, Vernon Police Management Associetion, Vemon Firemen's Association, the Vemon Fire Managemenl Association, lntematlmal Brotherhood of Electrical Workers Locsl 47, and Teamsters Local 911. 3.@ESSED The selected tow seMce company shall be able lo provide swift, professional seMoe in the removal of any vehicle, as directed by the Vemon Police Dopartment, from any City street. 4. SCOPE OF SERVICES REQUIRED The City of Vemon is seeking the se rlces of a highly qualified to service company to assist in: Under the terms specified herein as well as in Chapter 48 of the Vernon Municipal Code, Franchisee shall furnish impound, to^,ing, and storage services to the Venpn Police Departm€nt and the City as directed by the Vemon Polic€ D€parlment. To ba eligible for a franchise, applicants musl meet tlre City's minimum requirementrs as specified herein. Franchisee will be required to provide the necessary trained personnel, to , trucks atd storage fecilities to recover, if necessary, and remove vehicles and tractor/trailers involvBd in collisions. Franchisee(s) must be able to tow and store vehicles impounded by the police, many tirnes in excess of 30 days: and must be able to clean up and dispose of debris at the scene of an accident at which any vehicle to be lcn ed hereunder was involved, The average response time for any hirty day period pursuant to requests for toiY seMce by the Police Oeparfnent, must not exceed twenty (20) minutes. The marimum response time for any sirple requesl for tow seMce by the Police Oepartment shall not exce€d hirty (30) minutes. ln the event the Franchisee cannot respond wihin 20 minutes, the Franchisee shall immediately notify the Police Department dispatcher and provide an estimated time of anival. Franchisee must provide a dispatcher available onsite at lhe tou, facility place of business at all limes for the immediate dispatching of towing equipmont. Franchisee's place of business must be open frorn 0700 to 1800 hourc Monday through Friday. Alt€mate hours, as directed by the City, must algo be available in order to ec@mmodate special City events. Failure or refusal to pmmptly relay the Police Dbpatchels requests for towing se rices shall constitute failure to comply wlth he requirements, terrE and conditions of the agreement and may resull in termination of the agreement. All low trucks shall be equipped as provided in the Califomia Vohicle Code. 3 i I I ! I I I City of Vernon Franchise Tow Fee Program Request for Proposals Franchisee's trucks shall be painted, tree of major dents, and kept clean and in good uiorkirE order. Official police tow seNices shall, at all timEs, have at least three fully equipped and operational tow trucks in service. All of the tot r trucks in sarice must have a minimum capacity of orE (1) ton. At leasl one of the tow trucks in service must be a flatbod tow truck. At least one of the three tow trucks in service must have a five ton (5) lifting capacity. Every oficial police tow seMce shall be eq uipp€d for and have personnel proficient in unlocking locked vehicles urhen requested to do so by Police Department employees. Upon selection the Franchisee shall flle witr the Vernon Police Oepartment, the name, address, date of birth, driveis license number, and all other information required of any tow unit driver employed by the permit holder subsequent to the date of the tow operator permit application, which information shall be filed not later than ten (10) business days folloring the effective date of hiring. The Franchisee will be required to notify the Vemon Police D€partment of the name of any tow tsuck drirrer no longer employed by such permit holder. This mtification shall be given to the Vemon Police Depaftment no later than ten (10) business days following the last date of the drive/s employment by lhe permit holder, The Franchisee will b€ requirod to notify the Vernon Polico O€partrnent of the identity of any tow truck driver whose license is suspended. The operator shall not be authorized to operate in Vermn unless the operator has provided prof from he Department of Motor Vehicles of the abilig to operate a vehicle during uork hours. The Francfiisee will be required to enroll and participating in a program with California Depadrnent of Motor Vehicl6 (DMV Pull Program) that notifies the Franchisee when th€ir drivers ha\re any change to th6ir drMng status or record. This DMV program will alert the Franchisee to any potential problem d.i\reG. Frandrisee will b€ EquirEd to comply with the California Vehicle Code and other applicable hws with regards to lien sales, including supplying a list of \rehicles each rlrdlth that the Franchis€e intends to lien sale prior to sellirE same for approval by the department. Franchisee is responsible for maintaining all documents relating to lien sales 5, QUAUFICATIONS & CRITERIA A Qualifrcations: The City of Vemon will select no more than two (2) tow seNice companies for all of the outlined Scope ot Service on the basis of qualifications, experience, and cost. The follo,ing are the mirimum qualifications to be used to evaluate responsas lo this R€quest for Proposal: 1. The applicants can satisFy lhe insurance, business license, and tow opeEtor permits requirements set forth in Vemon Municipal Code Chapter 48.2. The epplicants are qualifi€d on the basis of prior experience in the towing -4- City ofVemon Franchise Tow Fee Program Request for proposals operatbn businsss and financial responsibility.3. All tow vehicles and equipment must comply with all stat6 and applicable federal requirements.4. The applicants can reasonably conduct an official police to^ring service which complies with all of the rcquirements of Vernon Municipal Code Chapter 48.5 The applicants will accept all tow requested by the City, including tows of abandoned or dismantled vehlcles and/or tows requiring special equipment. B. Selectlon Crlteda: The City will conduct a comprehensive, fair, and impartial evaluation of proposals recgived in response to this RFp. All proposals received will be reviewed and evaluated by a committee of qualified personnel. The name, information. or experience of the indivfulual membeE will not bE made available to any proposor. The Eraluation Committee will first review and scrBen all propeals submitted, except for the cost proposals, according b the minimum qualifications set brth above. The follorring criteria will be used in reviewing and comparing the prcposals and in detemining the highest scoring bid: 1. 40lo Qualifications, background and prior experienco of the tow service company in the Service Area(s) being proposed, expe,ience of key staff assigned to o\,igrsee services provided to Vemon, evalu€tion of size and scope of similar work performed and success on hat u,ork.2. 30% Cost and fe€s to the City for handling matters. Cost is not the sole determining factor but will be tjaken into consideralion. propos€r must offer servic€s at a rate comparable to the rate proposer offErs to olher govemmental entities for similar work. Offering a higher rate to the City than the comparable rate is grounds for disqualification of the proposei. lf rates differ for different types or leveb of service, or for different SeMce Areas, the Proposer should so siate.3. 10% Responsiveness to the RFp, and quality and responsiveness of the proposal. 4. 20% References including past performance of pmposer. 6. FORISAT ANO DELIVERY OF RESPONSE Raspondents are asked to submit seven (7) hard copies and one (1) electronic copy of their proposals in sufficient detail to allovv for a thorough e\raluation and compara'tive analysis. The proposal should include, at a minimum, the following information in sectionalized format addressirE all phases of the work in ihe RFp. A. Format: Limit )/our proposal to 20 typed B.S, X 11" pages, or fef,,er, on white bond paper of at least 2Gpound weight single sided (excluding cover letter and attechm€nts. You may attach a company brochure if )ou wish, but it musl be as a separate attachmont and independent from the reguired elements noted ebova. 1- U,se a conventional typeface with a minimum font size of 12 points. Use a 1' margin on all boarders. B, City of Vemon Franchise Tow Fee Program Request for Proposals 2. O.g,anize )rour submittral in the order describsd above. 3. Provide one (1) unbound original of your compan!/s response and one electmnic t/ersion (via email) to Ceptrain Micheel cillman, mgillman@covpd.org 4. Prominently label the package: "Franchtse To$, Foe Program' and include the name of thB primary contact for the respondent. Deliwr the response to: City of Verron Attont'on: Captain Michael Gillman 4305 Santa Fe Averue. Vemon, CA 90058 5. Responses are due on or bofore 5:00 p.m. on April 16, 2015. Late rEspome will not be accepted. 6. lf t/ou have any question about thb RFP, please contact Captain Micha€l Glllman at (323) 587-5171 ext. 115. Cover Letter: All proposals shall include a cover lener which states that the proposal shall remain valid for a period of not less than ninety (9O) days from the date of submittal. lf the propcal contemplates the use of sub-contraciors, the sub- contrac{ors shall be identified in the cover lefler. lf the proposal b submitted by a buslnEs entity, the cover letter shall be signed by an ofiicer authorized to contradually bind the business entity. With respect to the business entity, the cover letter shall also include: the iJentilication ofthe buslness entity, including the name, address and telephone number of the buslness ontity; and the name, title, address and telephone number of a conlact person during the proposal €valuation period. ldroducdon: Presenl an introductim of the poposal and your understanding of the assignment ard significant steps, methods and procedures to be employod by the propos€r to ensure quality deliverables &rat can be deliye,€d within the required time frames and your identilied budget. General Scope of Work: Briefly summarize the scope of work as the proposer perceives or envisions it for each Service Area proposed. Work Plan: Pres€nt concepts for conducting the urork plan and intenehtionship of all projects. Define the scope of 6ach task inctuding the depth and scope of analysis or research proposed. Fa€s and corts: Although an important aspect of consideration, the linancial cost Gtimate will not be the sole justiticatlon for conskJeration. Negotiations may or may not b€ conducbd with the propos6[ therefore, the proposal submined should contain the proposofs most fa\rorable tefrns and condluons, since selection and award may be made without discussion with any tow sorvico compeny. All pdces c. D. E. F. -6- (r. City of Vemon Franchise Tow Fee Program Request for Proposals should reflect'not to exceed'amounts per item. Proposer musl offer services at a rate comparable to the rate proposer offers to oth€r governmental €ntities for similar v\rork. Offering a higher rate to the City than the comparable rate b grounds for disqualification of the Proposer. Ability of the Proposer to Psrform: Provirle a detailod description of the propcser and his/heriits qualifications, including names, titles, detailed professional resumes and past exp€rience in similar sork efforts/products of key pelsonnel who will be working on the assignment. Provide a list of specific related work proFcts that have been compbted by the propos€r which are directly related to the assignment described in this RFP. Note the specific individuals who completed such projec(s). ldentify role and responsibility of each member of the poect team. lnclude the amount of time key personnel will be involved in the respective portions of the assignment. Respondents are en@ur{ed to supply relevant examdes of their prcfessional product. Provide a list of references. The selected tow service companies shall not subcontract any work under the RFP nor assign any work without the prior written consent of the City. Afridavit of Non-Collusion. Proposer must submit a complated and signed, 'Affidavit of Non-Collusion.' (Copy attacfied as Exhibit A). AOOENDA CHANGES, AllD AiIENDiTENTS TO THIS SOUCITATION At arry time priot to the due date for responses, the City may make changes. amendments, and addenda to this solicitation, includirg changing the date dJe to allo^, respondents time to address such changes. Adderda, chang€s, and amendments, if made, will be posted on the Ciys website (u vrrr.cityofuemon.org ), B'tlich is deemed adequate notice. A proposer may make a requ€st to the City's proiect coordinator to be placed on a list of persons to receive ,tioe of any such addenda, changes, or amendments. The prefened manner of communications ls via e-mall due to its timeliness. 8. CONDITIONS FOR RESPONSES TO RFP The follo,ving conditions apply to this RFP process: A NothirE contained in this RFP shall create any contractual relationship between the respondent and the City. B. This RFP does not obligate the Cig to establish a list of service providers qualmed as prime contractors, or award a contraot to any respondent. Th€ City r€serv€s the right to amend or cancel this RFP without prior notice, at any tim€, at its sola discrotion. The City shall nd be liable for any expens€s inqJned by any individual or organization in connection with this RFP. No comrersations or agreements with any orficor, agont, or 7. c. 7 City ofVemon Franchise Tow Fee Program Request for Proposals employee of the City shall affecl or modify any terms of lhis RFp, Oral communications or any wri[en/e-mail materials provided by any person other than designated contact staff of City shall mt be considered binding. E. The City reserves the right, in its sole discretbn, to accept or reject any or all Proposals without prior notice and to u,aive any minor inegularities or defects in a Proposal. The City reseru€s he right io seek clarification on a Proposal with any source. F. The dates, times, and sequence of evenls related to this RFp shall ultirnately bs determined by the Clty. The schedule shown above is subiect to change, al the sol6 discretion of the City, although the City will atlempt to follorrv it and, if it must be altereJ, will attempt to provide reasonable notice of the ctnnges_ G. Respondents shall not issue any nenrs release pertaining to this RFP, or the City without prior $nitten approval of tho CiV. H. All submitted proposab and information included therein or atladred thereto shall become public record upon delircry to he City Administrator's Ofiice. RIGHT BY THE CITY TO WITHDRAIA' THIS REOUEST The City may, at its sole discaetion and for any reason whatsoever, withdraw this sollcitalion at any time. ,0. LIVING WAGE ORDINANCE The selec'ted tow service companies shall pay qualifying employees a wage cf not less than $10.30 per hour with health benefits, or $1 1.55 per hour without health benefits. The tow service mmpanies shall also provide qualifying emplo)rees at least twelve dalrs off per year for sick lea\re, vacatlon or personnel necessity, and an additional ten dayi a year of unmmpensated time for sick leave. There shall be a prohibition on employei retaliation against an employee's mmplaining to the City with regard to the empbye/s compliance with the living wage ordinance. The touv services companios, and any sub- contracfo(s), shall comply with the City's Living Wage Ordinance. The cunent Living Wage Slandards are set forth in Exhibit'D' of the standard form franchise bwing servbB contract, attached tEreto as Exhibit B. Upon the City's request, certilied payroll records shall promptly be provided to the City. -8- City ofVemon Franchise Tow Fee Program Request for Proposals 11, STANDARD TERI'S ANO CONDITIONS Prior lo the award of any work hereundq Cily and proposer shall onter into the written contract for services attached h€reto as Exhibit B. Propos€rs respondirg to this RFP are strongly advised to review all the terms and conditions of lhe Contracl lhe term of the Contracl shall not exceed three (3) years, -9- City ofVemon Franchise Tow Fee Program Request for Proposals EXHIBIT A AFFIOAVIT OF NON.COLLUSION - 10 - AITIDAVIT OF NON.COLLUSION BY COMRACTOR STATE OF CALIFORNI,A ) )ss coLtNIY OFLOS ANGET-ES ) bejng first duly swom deposes and says that hdshc is of (lll!.rl '5.L Oqtl.i, 'P!nE/. .Irtsid.i! .S4rssry., o. otllr pmpcr dtL) (IEn tl&. of biliLr) who submils h€icwiih @ rhc City of Vcrnon s bid/proposal; ThEi all siatcncns of fact in such bidiproposal are uuc; Thrt such bid/proposal w8s not mrde in the interur of or on bdralf of any undisclosed person, panncrship, compaly, associatbn, organization or corporsbon; That such bid/pmposal is gcouinc and not collusivc or sham; That said biddcr lus nog direcdy or indirccdy by agrtcmcnq mmmunication or confcrcncc with an5rone altcmptcd to inducc action pr€judicial to the hterBt of the city of vernon, or of any otlrer bid&r c anlone else intcrestEd in the proposed cont-acq and firnher Tbrt prior b the prblic opcning and reading of birts,fmposa\ said biddcr: a. Did not dL€ctty or indirEctly, induce or solicit anl,one els€ !o submit r false or shrm d bid/proposal; Did not directly or inclirectln collude, conspie, conni're or agrE€ with anyone else that said bidder or anyone else would submit r false or sham bid/proposa! or tlnt anyure should retain from bidding or withdraw hivha birUproposal; Did not, in any manner, directly or indircctly s€ek by ageement, corununicotion or confererrce with anprr to raise or fix the bid/proposal price ofsaid bidder or of anlone else, or ro raise or fix any overhead, profir or cost element of his/her birUpropcal pric.c, or ofthat of anlone elsc; Did no! dir€ctly or indirecrly, submit hiVher bi&fropoerl price or any brcakdown thaeof, or the contents thereof, or dir1rlge information or data relative thcreto, to any corpontion, pqrh€rdlip, company, association, organization, bid depository, or to any ncarbcr or ageni thcreof, or to eny individual or group ofindividurls, except the City of Va.lroq or to any pafson or pcrsons who have a paftlership or odrr fuEflciat inter€st with ssid bidd6 in hMcr blsin€ss. I ccrtifu uader penalty of perjury that tle above information is correct By ritle: Mlrch 201 l c. City of Vemon Franchise Tow Fee Program Requ€st for Proposals B(HIBIT B STANDARD FORM CONTMCT -/l- CIry OF VERNON FRANCHISEE TOWING SERVICES AGREEMENT NO. COVER PAGE Franchisee:[insert name of franchiseel Flesponsible Principal of Franchise€: linsert name, titlel Notice lnformation - Franchisee: [insert name of franchiseel [insert str€et address] [insert city, state, zip oodel Attention: [insert name, titlel Phone: [inserl phone number] Facsimile: [insert fax number] Notice lnformation - Cit)4 Cornmencement Datel Termination Date: Conslderation: Records Rotention Period City of Vernon 4ii05 Santa Fe Avenue Vemon, CA 90058 Attention: linsert department headJ linsen department haad titlel Telephone: (323) 583-881 1 ext. linserl] Facsimile: [insert fax number] [insert commencement date] [insert termination date] Payment is made by Franchisee to City pursuant to Soction 3 of this Agraement. Payment is made to Franchisee by City pursuant to Section 5 of this Agreement. linsert number of years contractor must retain recordsl March 2015 CITY OF VERNON FRANCHISEE TOWING SERVICES AGREEMENT NO. This Agreefi)enl is made and enlered into by and between the City of Vemon ("CiM), a Califomia clnrter City and Califomia municipal corporation, and ('Franchisee'), a Folico Toriing Company with its principal placa of business at (colleclively, the 'Parties') to provide for to$/ing services lo the City The Parties agre€ as follows: RECITALS WHEREAS, Frenchisse shall proide polica towirq services to the City of Vemon as sel ,orth in the Request for Proposal dated . Exhibit A. and Franqhisee's roDosal to the Citv ('Prooosal;) datEd E lnto this AorcemenL bv reference- WHEREAS, pursuant to Chapter 48 o{ the Vemon Municipal Code, Franchise has applied for a Police Tourlng Franchlse ('F.anchise'); and WHEREAS, the City Council has held a pubtic hearing for thg pumose of hearing persons in favor of or in opposition to the granting of such Frandrise; and WHEREAS, the City Council has determined that Franchises has demonstEted cornpliane wilh Chapter 48 of the Vemon Municipal Code and has agreed to comply with all provisions of that Chapter; and _ WHEREAS, it is r€quired thal City and Franchisee enter into a Frenchiso Towing SeMces Agreement ("Agreenrenf ) for Fdice Towing eervices in the City of Vemon; ani WHEREAS, additional conditions have been imposed upon thls grant of Franchise. NOW, THEREFORE, the Partie do hereby agre€ as frdlone: Section 1. GRANT OF FRANCHISE. City grants to Franchisee a Police Towing Franchise authorizing Franchisee to er€age in the business of Polic€ Towing as set forth in chapter 48 of the vemon Municipel code in the city ot vemon and to use the public streets and nghls of way for sucfi purpose. This grant is pur$uant to lhe City's Request for Pro@sal and to Franchisee's proposalfor the Franchise. Franchisae is subiect to the terms and condiflons specifi€d in secuon 8.9 of the charler of th€ Clty of V€rnon, the provlsions of Ghapter 48 of the Vemon Municipal Code, the terms and conditions $pecified in all ,elated resolutions, the terms and conditions of this Agreemenl, therepresentations and asstrances in Franchisee's application for the Francfrise. Section 2. TERM OF FRANCHTSE. The term of this Franchise granled to Franchisee shall b€ for three (3) years, from lo inc{usive. March 2015 Section 3. FRANCHISE FEES. 3.1 During the term of lhe Franchise, Franchisee shall pay franchise fe€s to City, which fees shall be assessed from the date on which the ordinance granting this Franchise bec€me effeclive and in accordance with Section 48.8 of the Vemon Municipal Code and any Resolution adopted by the City Council and in such other amounts as are set forth in any subsequent resolutions that may be adopted by the City Council at any time during the tem of the Agreement. 3,2 Franchise shall timely pay all required ftanchise fees to: Finance Department - Director of Financ€ City of Vernon 4305 Santa Fe Avenue Vernon, CA 90056 Eacfi payment shall be accompanied by a written sEtement, veritied by the Franchisee or a duly authorized represenbtive of the Franchise, showing in such form and detail as the Director of th€ Department of Finance may prescribe, the calculation of the franchise fee payable by the Franchisee and such oth€r information as the Director of the Department of Finance may require as material to a determination of the amount due. 3.3 The first payrnent of the franchisa fee will be due on and payments shall be due monthly thereaftor on the 15u day of each month. 3.4 When Franchisee remits franchise fees the City, such franchise fees shall be deemed timety paid only if deliverad or posfnarked on or before the due date. lf fBBs are not timely paid, Franchisee shall be sublect to suspansion or Emination of the Franchise pursuant to Section 14 of this Agreement and/or to any other penalties which may be establbhed and assessed by the City, including, but without limitstion, late fees assessed at the rate cf fiw percent (5%). Section 4. TOWING SERVICES. 4.1 Franchisee shall pmvide Police Tdr/ing services, as set forth in Exhibit A, whlch is the city's Request for Proposals for official police Tow services, and whicfi includes, but wthout llmitation, strictly adhering to the eligibility requirements. operating regulations, fees schedules. standards for to^, truck equipment, standard rules of operafion, response time, inspection, information regarding new or terminated tow truck drivers, tow driver training, and as set forh in Bdibit B which is Franchisee's response to the City,s Requ€st for proposali. All seMces by Franchisee shall comply will all prwisions of federal, state and local hw and regulation, induding, but without limitation Chapter 48 of the Vemon Municipal Code. 4.2 Franchise€ und€rstands and agrees that, although the City is granting it a franctrise as a police torving servic€, the city may requisition towing services from ot-her seriiceproviders as set forth in section 48.12 of the vemon Municipal coJo, or if Franchisee is otherwlse unavailabl€ for any reason, in the reasonable disiretion of the Vemon chief of police and including, but without limitation, suspension or termination of the Franchisee. March 2015 Sec{ion 5. RATES, CHARGES AND PAYMENT. 5.'l The rates and charges for towing and storage in connection with this Franchise shall be established by the City Council. The prevailing rates prescribed by the Southem Dvision of he Califomh Highway Pahol, the Los Angeles Police Deparbnent, and the Los Angeles County Sheriff will be considered when sstablishing these rabs. The rate per impound shall be $_ and the storage charge shall be $_ per day, until otherwise modirisd by the City Council. A sign showing lhe approved rates and charges shall be conspicuously postod in the Franchisee's tow oflice and shall be posted in a conspicuous place in lhe interior of each tow truck operaied by Franchisee. Franchisee shall provide whicle owners the option of payment by Mastercard and Msa. Franchise€ must provide for after-hours releases of vehicles, and may collect an aflor-hour release fee. As part of the arirard of franchise the City Council will be rBquested to establish an after-hours release fee not to exceed % of the impound fee in addition to olher established fees, Section 6. REPORTS. Franchisee shall file a monthly towing report with the Chief of Police along with payrnent of its monthly franchise fees. The report shall be submitted to: Chief of Police Vernon Police Department 4305 Santa Fe A\renue Vernon, CA 90058 The report shall include the information required by Section 48.10(H) of the Vemon Municipalfue for Franchisee and ib subcontractors, c€rtified as true and conect under penalty of perjury by a responsible owner or official of the Franchisee: Section 7. FMNCHISEE'S RECORDS. 7.1 The Franchisee shall maintain accurate and ctrnplete books and accounls of all revenues and income arising out of its operalions under the Franchise and in a manner, which conforms with generally accepted accounting principles. Frsnchisee's books, accounls and records, arising out of or related to its operation under the Franchise, shall at all times be open to inspection, examination and audit by authorized officers, employees and agenB of lhe City. Such records shall be kept at franchisee's place of br.siness shown in this Agreement for receipt of notices. 7.2 Franchisee shall require its subcontractors, if any, who perform police Towing seMces in connection with he Franchise to keep and maintain books of account and other records showing all business transactions conducted by such subcontractoE in connection with lhe Franchise. Franchisoe agrees to use its best etforis to avoid duplication of reporting b€tween Franchisee and its sub@ntractors. Section 8. TOVV VEHICLE AND DR|VER. REPORTTNG. COMPL|ANCE. AND IDENTIFICATION. 8.1 Franchisee shall maintain on file with he City, a complete and accurate listing of every raehicle operated by Franchisee for police towing services. Franchisee shall certifo, in a form acceptable to city, that every such vehicle conforms with regional and state March 2015 vehicle 6mission standards ('emission standards'), and shall provide documentation of compliance on written request of the City. Franchisee understands and agres that failure to conform with emission standards may result in suspension, termination or non-renewal of a Franchise. 8.2 Every vehicle operaled by Franchisee and for Police Towing seMces in the City shall bear the following identification: Franchisee's trade name, monogram or insignia, the Franchise vehicle number, bgether with Franciisee's telephone number painted upon both sides of the vehicle. All lettering menlioned in this paragraph shall be not less than 2-1H in height and not less than 5/6' stroke. The Franchisee agrees to remove the Franchise vehicle number and all other informaiion within 30 calendar days after the Franchise is terminated or the vehide is sold, transferred or tsken out of service. 8.3 Franchlsee shall file with the Vernon Police Department, the name, address, date of birth, drive/s license number, ard all identification required of any tow unit driver workir€ for Franchisoe, whether as an employee or as a contractor, which information shall be filed not later than ten (10) business days following the effective date of employnent or engageinent Franchisee shall also notify the Vemon Police Department within ten (10) business days of the follouring occurences: the license suspension of any tow unit driver, and the end of employment, or engagement, of any tol unit driver with Franchisee. Section 9. INDEMNIFICATION OF CITY. 9.1 Franchisee shall indemniry and hold the City harmless from and against any and all loss, damages, liability, claims, suib, costs and exp€nsss, fines, charges or p€nalti€s whatsoever, irrcluding rsasonable a[omey's fees, regardless of the merlt or outcome of any such claim or sult, arising from or in any manner r€lated to the services provided or business conducted under Chapter 48 of the Vemon Municipal Code or othe/wlse pursuant to this Agreement. 9.2 Franchise€ shall ind€mniry the City, defend with counsel approved by the City, protect and hold harmless the City, its otficers, employees, agents, assigns, and any successor or successors to the Citys interest froryr and againsl all claims, actual damages (including but not limited to special and consequential damages), natural resources damage, punitive damages, injuries, costs, response, remediation and removal costs, losses, demands, debts, liens, liabilities, causes of action, suits, legal or administrative proceedings, interest. lines and charges, penalties and expenses (including, but not limited to, attomeys' and expert witness fees and costs inqjrred in connection with defending against any of the foregoing or in enforcing this indemnity) of any kind whatsoever paid, incuned or suffered by, or asserted against, the City or its officerc, employees, agents or the Franchisee arising from or attributable to any repair, remediation, cleanup or detoxification, or preparation and implemenlation of any removal, remedial, response, or closure or other plan (r€ardless of whether undertaken due to govemmenlal action) concerning any hazardous substance or hazardous uaste at any place r/here the Franchisee stores or dispose of solid or hazardous waste. The foregoing indemnity is intended to operate as an Agreement pursuant to the Comprehensive Environmental Responsa, Compensation and Liability Act, 42 Uniled States Code Section 9607, and California Health and Safety Code Section 25364, and any successor provisions, to in6ure, protect, hold harmless, and indemnify the Cig from lhbility. March 2015 Sectionl0. INSURANCEREQUIREMENTS. 10.1 Franchisee shall, at lts sole cost and expense, procure and maintain in full force and effect, throughout th€ term of thisAgreement, inclusive of any reneural term granH by City, insuranoe ageinst claims for iniuries to persons or darnages to property which may arise lrom or in connection with the performance of the services hereunder by the Frandlisee, its agenb, repres€ntatives, emplolEes or subcontractors. Franchisse shall ploc re and mainhln insurence polioes of the tlpes and meeting the requirements set forth belo^r, and shall Provide to the City a CertiJic€te of hsurance, or other suc*t evidence reasonably scceptable to the City, verlfylng the existBnc€ of sudt policies: 10.2 Mlnimum Smoe of lnsurance Coveraoe. Franchisee shall ptocure and mainlain policiE ol insurance wilh minimum scopes of coverage AT LEAST as broad as the following: (a) ComprehensiveGeneralLiabilitylnsurance. (b) ComprehensiveVehicle Liabilitylnsuranoe, (c) Workers' Compensation lnsurance as required by the State of Califomia and Employe/s L'nbility lmurance. 10.3 Minimum Umits. Vendor shall maintrain insurance wilh minimum limits NO LESS THAN the following: (e) General Liability of Two Million Dollars (62,000,000) for sach occunanco and in the aggregaG, combinBd single limit, ageinst any bodily injury, deelh, parsonal injury, or property damage. ln Comprehensive GenBral Liebility lnsurance or other form in which a general agg.egate limit is used, the general limit shall apply s€paratEly to this Agreement or the g€neral limit shall be TWICE the required occunence limlt. (b) Automobile Llabllity of One Million Dollars ($1 ,000,000) per accident fot bodily injury and property damage. (c) Garage KeePrs Legal Liability coverage with minimum limits of Ttit o Hundred Fifty Thosand Dollars ($250,000) per occunence. (d) Emdo),er's Liability of One Million Dollars ($1 ,000,000) per accident for bodily injury or disease. (e) Wofter's Compensatioo and Employer's Liability lnsurance in an amount required by law. 10.4 Deduclibles. Any deductibles or self-insured Gtentions must be declared to and approved by the City- At the option of the City, Franchisee shall eith€r: (a) Reduce or eliminate such deductibles or self-insured retentions as respect to lhe City, iE elected and appointed offlcials. ofilcers, emplolrees, agents, representatives, attorne)/s, and volunteers: OR (b) Procure a bond, guarenteeing payment of losses snd related invGtlgations. claim administlaton and defense expenses. March 2015 _ 10.5 RequhEd Endorsements. All of the poricies required by this Agreement shall conhin, or bE endorsed to contain, the following provisions: (a) City, its elected and appointed officials. officers, emplo)rees, agents, reprGentatlves, attomeys and volunteers shall be named as additional insured parties, and the policies shall specifEally state that the coverage contained in the policies affords insurance pursuant to the lerms and conditions as set forth in this Agreement. (b) The insurance coverage prorided by he Franchise€ shafl be primary to any coverage ar/ailable to the City. Any insurance or self-insurance maintained by City, its Officers, Omcials, emplo),ees Or volunteers Shall be in excess of Franohisee'S 6wn - insurance and shall not contribute with it. (c) The insurance policies shall contain no special limitations on the scope of protectbn afforded to the City, its elected and appointed officiab, oflicors, employees, agents, representatives, atorne!6 or volunteers. Further, the policies shall expressly uraive the right of subrogation against City, its elected and appoinled officials, ofiicers, emplolees, agenb, representatives, attorneys or volunteers. (d) Any failure to comply with reporting or other provisions of the policies induding breaches of warranties shall not affect coverage provirJed to the City, its elected and appointed officials, officors, emploloes, ag€nts, represantalires, attomeys or volunteers. (e) The insurance coverage shall apply separately to each insured against whom claim is made or suit is brough[ except with respect to the limits of the insureds liability. (f) Each insurance policy required by this section shall be endorsed to state that coverage SHALL NOT be suspended. voided, and/or canceled by either party, and that there shall be no reduction in the amount of coverage or in the limits applicable thereto EXCEPT after thirty (30) days prior written notice has been given to the City, said written notice to be delivered by U.S. Certified Mail, Return Receipt Requested addressed to the City Attorney and City Finance Director. b) ln its sole discretion, the City may waive all or some porlion of the above referenced insurance if such waiver is in writing and executed by citys Finance Director, . . 10:6 BgSuredjnsuElce Be!!S. Any insurance policy required by this Agreement shall be placed with an insurer admitted in the State of Califomia with a current A.M. Best,s rattng of NO LESS THAN B+:Vll in the latest edition of Best,s lnsurance Guide. 10.7 Olioinal CertiricaEs Reouired. At all times during the term of this Agreemont, Franchisee shall maintain on file with the Ci!y's Finance Elirsctor a certificate or certificates of insurance. Said cerlificate or c€rtificates of insurance shall shou, that the aforesaid policies are in effect in the required amounts and shall contain each of the endorsements as set forth in section 10.3. Francfiisee shall, prior to commencement of work under this AgrBement, file with the city Finance Direcbr the onginat certficates effec[ng coverage required 6y this section of this Agreement. The erdorsements are to be signed by the person auitrorEed by ttat insurer to March 2015 t$nd coverage on its behalf. The ondorsements are to b€ raceived and approved by City be{ole Franc.hisee mmm€nc€s operation under the t6rms of this Agraement 10.8 Failure !o Maintain Required lnsurance. Franchisee agreeE that it it fails to k€€p the aforBaid insurance policies in full force and effsct the City may, at its sole option, either (i) immediat€ly terminato this Agr€€fl16nt or, (ii) if insurance is available at a reasonable cost, the City may take out the nec€ssary insumnce and pay, at Franchisee,s cost and expens6, the promium thffeon. Section 11. TERMINATION AND SUSPENSION. The Cig may terminate ltris Agrcament, without caus6, by glvlng the Frandliss thirty (3o) days u,ritt6n notice of such termination and the effective date thereof. The Gity may terminats this Agr€€rn€nt, wilh caus€, by giving the Franchisee (10) days writt8n noti@ of such terminat'on and the effective date ther€of. Cancellation for cause shall be at the dbcr€tion of h€ City and shall be, but is not llmiled to, failure to supply the materials, equipment or servioe specified within the time allowed or within the terms, conditions or provisions of this contract. The Franchisee mey not c€ncel this Agr€€ment without prior wrinen cons€nt ftom the Vemon Chiof ol Polic6. Section 12. TEMPOMRYSUSPENSION. ln addition to termination or suspension as set forth in Section ,l1, ebors, tre Chief of Police may temporarily suspend any Franchisee without a hearing, whenever he continued operEtion by fie F?ahchbes would oonstitule a danger to public health, sefety. rrclfare or public morals, including. without Jimitation, where lhere is a failure to maintain th€ minimum bveh and standaids of liebility insurence or cleims resen/e or failure lo keep in fullficrce and eff€ct any applicable licansas or permits required by f6deral, slate, local taw, or regulation. The notice of temporary suspension may b€ personslly delivered to the parly named and to the address gi\ren on the application pursuant to which such Franchise was issued and to the notice address stat8d h€rein, if differenl or. mailed by rBgist6red or certffied mail to the party named at the addross given on the application puBuant to wtrich sudl Franchise was issued and to the noticG address sEted herein, if difierenl Nolwithstanding other notics provisions of this Aoreement, he temporary suspension is effective upon the eerlier of eilhs receipt or the expiration of 3 days ftom the date of mailing. The notice of temporary suspension shall include a nollce of the date and time for termination h€arirE and all other irformauon required by the Vemon Municipal Code, The temporary suspension shall r€main Ellective until the decision on suspension or termination is made unless the suspension is lifted by written notice of the Chief of polioe. Section 13. ACCEPTANCE. WAIVER. Franchisee agrees to be bound by and comply with all the requirarnents of Chapter 48 and this Agr€amant. By entering into his Agreement, Franchisec wai\res, to the maximum ext€nt permitted by hw, Franchis€e's right to challenge the terms of this Agrcefient and of Chapter 48 under federal, state or local law, or under administrative regulation, as such laws and regulations exist es of the date of 6ignirE of this Agreemeni. Section 14. cENEML TERMS AND CONOITIONS. 14.'l INDEPENDENT STATUS. lt is undorstood ihat in the performance under this Agreement, Franchiso€ shall b€, and is. an indepEndent operator. ard is not an agsnt, March 201S contractor, or employee of clty and shall fumish services in ils own mannsr end method. Furlher, Franch'rsa€ has and shall retain he right to exercisE full conhol ovEr the employment, direciion, compensation and discharge ot all porsons employed by Franchisee in its'br.6iness operations. Franchises shall bo soloiy responsible for, and shall indemnify, defend and save city harmless ftom all matters rolaling to the payment of is employees, including compliancs with social socudty, withholding and all other wages, salaries, benefits, taxes, exactions, and regulations of any nature whatsoever. 14.2 FRANCHISE NOT AGENT. Frenchises and its subcontrectors sha have no authori9, express or implied, to act on behalf of or bind the City in any capacity whaboe\rar as agents or othenArise, 14.3 lrYAl\GR. The City's waircr of any term. condition, breach or default of this Agre€ment shall not be considored to be a weiver of any oth€r lerm, cofldition, default or breech, ,ror of a subs€quent breach of he one uraived, 14.4 NO ASSIGNMENT. The Franchisee shall nol assEn or transfer any interBst in his Agreement without the express prior written mnsent and approval of City Council. 14.5 COMPLIANCE WITH [-AWS. Franchisee shall comply with all Federal, Sbte, Courty and City hws, ordinances, resolulbns, rules and regulations, which er€, as amcnded from time to tim€, incorporaled herein and spplicablo to the perfrormance hereof. 14.6 ATTORNEYS FEES, lf any action at law or in equity is brought to enforce or interprel lhe terms of fris Agrednent, tre prevailirB party shall be entided to rEasonable attomsys fees, costs and necessary disbursernente in addition lo eny othEr relief to wtrich such party may be entiflod. 14.7 INTERPRETATION, 14.7.1 Apolicsble llw. This Agreement, and the rights and dutbs of tha partes hdEunder (bolh procedural and subshntit e), shall be golr€med and construgd acerding to lhe leu6 of the State of Celifdnia. 14.7,2 Enllre Aor6em€nt. This Agre€ment, including any Exhibits ett8chod hereto and any doclrmenb explidtly referenced herein, constitutes the €ntire agreemcnt and understanding betwoen the partlcs regarding lts subiect rEtter and supersedes all prior or contemporaneous negotiations, reF€seflbtions, understandings, oone€pondenco, doqrmentation and agreements (uitten or oral). 14.7.3 Written AmBndment. This AgrEement may onty be changed by written amendment sign€d by Franchisee and the City Administrator or o(her aulhoriad representatlv€ of the City, subioct to any requisite authorization by the City Council. Any o.al repreentations or modifications concaming lhis Agreement shell be of no force or effec*. - 14.7.4 Sewrabititv. lf any provision in this AgroEmant is h€ld by any cor.rl of compotent jurisdiction to be invalid, ill€ga|, void, or unenforcaable, sucft portion shill be deemed sewred ftom lhis Agreement, and the remaining provisions shall nevertheless continue in full furce and effect as fully as though such irwalid, illegal, or unenforceable portion had nevBr been pert of this Agroement. March 2015 14.7,5 Choice of Forum. The parties hereby agree that this Agreement is to be enforced in accordance with hs law6 of the State of Califomia, is entered into and is to be performed in th6 City of Vernon and that all claims or conbov€rsies arising out of or related to perforrnance under this Agreement shall be submitted to and resolved in a forum within the County of Lc Angeles at a plac€ to be determin€d by the rules of the brum. 14.7.5 Order of Precsdsnce. lncaseof conflict between the terms of Hris Agreement and the terms contained in any document attached as an Exhibit or otherwise Incorporated by reference, lhe order of precedence is as follows: Charter the City of Vemon, the V€mon Municipal Code, the ordinan@ granting thb Franchise, resolulions ol the City of Vemon lhis Agreement, the City's Request for Proposals for Ollichl Police Towing SeNices, and Franchisse's Response to the City's Request for Proposals for fficial Polic€ To ,irE Services. 14.7.7 Duplicate Orioinals. There shall be two (2) fully signed copies ot this Agreement, oach of which shall be deemed an original. 14.8 AUTHORITY OF FRANCHISEE. The Franchisee hereby represents and warranb to the City that he Franchis€e has the right, power, legal capacity and authority to entor into and p€rform lts obligstims urder this Agreement, and its execution of this Agreement has been duly authorized. Section '15. AODITIOML ASSUMNCES. 15,1 EOUAL EMPLOYMENT OPPORTUNITY PRACTICES, Franchisee oertifies and rep€Bents that, during the performancs of this Agreement, Franchisee and any other parties with whom it may subconhact shal adhere to equal opportunity employment pradices to assure that applicants and employees are treated equally and are not discriminated against because of their racs, religion, color, nataonal or(rin, ancestry, disability, sex, age, nEdical oondition, maritel status. Franchisee further eerttfles that it will not maintain any segregeted hcilities. Franchis€e further agrees to comply s,ith The Equal Employrnenl Opportunity Praclices prouisions as sel forth in Erhibit "C'. 15.2 EUSINESS LICENSES. Frenchisee shall obtain, and pay any and all costs associated therBwitl, arry Vemon Business License, whlch may be required by the Vernon Munioipal Code end all permits, and licenses applic,abie to Franchlsee's operations under this Franchise, which are required of Franchisee by any governmentel agency. 1 5. 3 MATNTENANCE AN D tNS PECT |ON_O. _F_BEGORDS, The City, or its euthorized auditors or reprcsentatlves, shell have access to and the right to audit and reproduce any of he Franchbee's records to the extent the City deems necessary to insure it is reEiving all rnoney to whbh it b entiued under the Agreement and/or is paying only he amounts to lyhich Franchisee is properly entitled under the Agreement or for othgr purposes relating to the Agreement. The Francfrisee shall maintain and preserve all such records for a period of at least 3 years after termination of the Agreement. The Franchisee shall maintain ell such rocords in the City of Vemon. lf not, the Franchisee shall, upon request, profiptly deliver the records to the City of Vemon or roimburse March 2015 the City for all reasonaHe and €xtra costs incurred in conducling the aLdit at a location other than fie City of Vernon, including, but not limitEd to, such addilional (outof the City) expens€s for personal, saleries, private auditors, travel, lodging, meals and overhead. 15.4 CONFLICT. Franchis€e heroby r€pressnts r/arants and csrtifies that no member, offrcer or employee of the Franchis€e is a director, officer or employee of the City of Vemon. or a member of any of its boards, commiss-ons or @mmittees, e)G€pt to the extent permi[ed by law. S€ction 16. LIVING WAGES. Franchisee. end any subconhaclo(s), shall comply Wth the Ci!/s Uving Wage Ordinance. The current Living Wage Standards arc set forth in Exhibit 'D'. Upon te Cigs ,equest, certified payrcll mcods shall prompfly be provided to th€ City. Sectiol 17. NOTICES. Except as otherwis€ provided in this Agresment, all noticas rcquired by this Aoreement or by Chad€r 48 of tha Vomon Municipal Code shall be givsn by p€rsmal ssMce or by deposit in he UniEd States mail, pctage pr+pald and retum rBceipt rBquested, addressed to tho parlies as follows: To City; Chief of Police Vemon Pdirx Department 4305 SanE Fe Avenue Vemon, CA 90058 Copies to: Dir€ctor of Finan@ City of Vemon 4305 Sants Fe Avenue Vernon, CA 90058 Franchisee: Notice shall be deemed efrective on ths datt personally served or, if mailed, three days the date deposited in the mail. [Signatures Begin on Next Page]- March 2O15 lN WTNESS WHEREoF, the parties hereto have caused this Agreemenl to b,e executed by their duly authorized representatives as of ths dete set forfli below. City of Vernon, a Cafbmta charter C:ty iFRANCH|SEE,S NAME, a [SEt€ and California municipal corporation incorporatad in] corporation Mayor i Maylr PrG.Tem Name: Tirte: ATTEST: Maria E. Ayala, City Clerk TiUe: APPROVED AS TO FORM: Hema Patel, Ciry Anomey By: Name: March 2015 DATED:DATED: By:By: EXHIBIT A REOUEST FOR PROPOSALS March 2015 EXHIBIT B FMNCHISEE'S PROPOSAL March 2015 A. B. c. EXHIBIT C THE EQUAL EMPLOYMENT OPPORTUNITY PRACTICES PROVISIONS Conhaclor certiles and represents that, during the pedormance of this Agreement, the contracbr and each subcontractor shall adhere to equal opportunity emptoynrent praaices to assure lhat Epplicents and emplo!@s are heaGd equally and are not discrimin;ted against because of thelr race, religious creed, color, nationil origin, ancGtry, handicap, sex, or age. contractor ludher cenirres that it will not maintain any segregaied facilities. Contractor agrees that it shall, in all solicitations or advertisements for applicants for employment placed by o it is an .Equal Opportunity Employe/'or that all qua ration for employ;enl wi[hout regard to their race, relig onal origin, anaestry, nandicap, sex or age. contractor agrees that it shall, if rcquested to do so by the city, cGrtify that it has not, in the performance of fris Agreement, discriminated against applicanb or employees because of their mernbership in a pmtected class. Contractor agrees to prwide the City with access to, and, if requested to do so by City, through its awErding authority, provide copieG of all of its records pertaining or relatinj to its employrnent practic€s, excspt to th€ sxt€nt Euch r6cord6 or portions of suCh records ire confidential or privileged under sbte or federal law. Nothing contained in this Agr€ement shall be construed in any manner as to require or permit any act wtlich is prohibited by law. March 2015 EXHIEIT D LIVING WAGE PROVISIONS Minimum Livinq Waoes: A requirement that Employers pay qualifying ernployees a wage of no less than $,10.30 per hour with health benefits, or $11.55 per hour witrout lealth benefits. Paidand Unoaid Davs Ofi: Employers provide qualifying employees at least twelvg compensated drys off per year for sick leeve, vacation, or personal necessity, and an additional ten days a year of uncompensated time for sick leave. No Retallatlon: A prohibition on employer retaliation against empbyees complaining to the city with regard to the employe/s compliance with the living wage ordinance. Employees may brirE an action in Superior Court against an employer for back pay, trEbte damages brwillful violaiions, and atbmey's fees, or to cornpel City ofiicials to terminate the service contract of violatirE empbyers. March 2015 EXHIBIT B EXHIBIT B FRANCHISEE'S PROPOSAL - 15 - FRANCHISE TOW FEE PROGRAM PROPOSAL Made To The City of Vernon Police Department 4305 Santa Fe Avenue Vemon, CA 90058 Made By U.S. Tow, [nc. 21 19 East 25e Street Los Angeles, CA 90058 li19 E. l:.,'ir Srrcet Apnl 16,2015 City of Vernon Police Department Attention: Captain Michael Gillman 4305 Santa Fe Avenue Vemon, CA 90058 RE: FRANCHISE TOWFEE PROGRAM Dear Captain Gillman: U.S. Tow, Inc. is pleased to submit this proposal to provide a Franchise Tow Fee Program for the City of Vernon Police Deparfrnent. Competitive Position U.S. Tow, Inc. originated in 1983. The firm has served the Los Angeles Police Department as the Offrcial Police Garage for the Newon Division since 2004. It additionally serves other governmental entities including the City oflos Angeles Department of Transportation, the Califomia Highway Patrol, the Los Algeles County Sheriffs Department, the City of Los Angeles Housing Authority, the University of Southem California Deparunent ofPublic Safety and the City oflos Angeles School Police Department. Ex perience/lVla nagement U.S. Tow, Inc. was acquired by Moshe Ben Dayan in 2013. Mr. Ben Dayan assumed the ownership of U.S. Tow with a wealth of previous towing experience. He founded and has operated Classic Tow, krc. dba Tip Top Tow Service at the same location in Santa Monica for more than 25 years. Tip Top Tow Service is an Offrcial Police Contractor for the Cities of Santa Monica and Beverly Hills. It additionally has long-standing contracts with a number of other govemmental entities. I City of Vernon Police Department April 16,2015 Page Two of Three Employees The major management staffof U.S. Tow has an average of 15 years of experience in the towing industry. This staff has operated the Newton Division OPG and the other elements ofthe firm's business with professionalism and integnty and it stands ready to provide excellent service to the City of Vernon Police Deparunent. Additionally, the hiring and training procedures utilized by U.S. Tow are stringent, and we consider it our utmost responsibiliq, to continue to enforce these procedures in the future. Site U.S. Tow has the distinct advantage ofhaving an existing site located at 2ll9 East 25m Sfieet, Los Algeles, which meets all current zoning regulations. This site is located directly across 25t Street from the northem boundary ofthe City of Vemon, thereby providing us with immediate a@ess to Vemon. U.S. Tow has a facility which provides a modem, clean, safe, professional environment. The U.S. Tow site consists of approximately 4.0 acres of screened, secured, lightd signed and cemented area for the impounding and storage ofvehicles and approximately 12,600 square feet ofenclosed building area for evidence hold, ancillary storage, administration and lien sale auction of vehicles. Tow Vehicles In an effort to sewe all of our clients in a timely and effective manner, we are continuously mindful with respect to maintaining a strong, contemporary fleet of tow vehicles. U.S. Tow has a fleet ofeight units including five flatbeds and three wheel- iiff/standard duty trucks. We additionally have three heavy duty trucks and one heavy duty trailer. This fleet, which we continuously service and upgrade, will allow us to maintain call times well under the 20-minute requirement of the City of Vemon Police Department. Customer Service The employees ofU.S. Tow are trained to develop awareness of customer problems, to establish empathy for customers, to understand and adapt to the diverse ethnicities and cultures of customers and to treat customers with respect and their vehicles and personal belongings with professionalism. Each one of us at U.S. Tow understands that difficult situations arise and our 'leam" philosophy of operation allows us to proactively handle these situations before they become problematic. -ii- City of Vernon Police Department Apnl 16,2015 Page Three of Tkee Management Moshe Ben Dayan, the PresidenVCEO of U.S. Tow, has been actively involved in the tow industry since 1989 at which time he established Classic Tow, Inc. dba Tip Top Tow Service which he has operated continuously in Santa Monica since that time. It is significant that Mr. Ben Dayan made the operation of Tip Top Tow Service his one and only business commitment until his purchase of U.S. Tow in 2013. Authorized Contact The person authorized to represent U. S . Torv in negotiations with the City of Vernon Police Department is Moshe Ben Dayan, PresidenVCEO, U. S. Tow, Inc. Mr. Ben Dayan additionally is authorized to execute the agreement with the City of Vemon on behalf of U.S. Tow and is the contact point for any questions or concems relative to this Proposal This Proposal wrll remain valid for a period of not less than ninety (90) days from the submittal date of April 16,2015. Legal Business Status U.S. Tow, lnc. is an "S" corporation, Federal TaxID#90-1014831. The corporation was founded in I 9 83 . Moshe Ben Dayan is Presidenl/CEO of the corporation and Stephanie McColgan is Vice President and Secretary/Treaswer of the corporation. The address of U S. Tow, Inc. is 2119 East 256 Street, Los Angeles, CA 90058; the telephone number is (323) 870-7100 the FAX number is (213) 749-0272; and the e-mail address is rnoshe@ustow.com. U.S. Tow currently meets all Federal, State and City requirements and there are no changes necessary or requirements unmet for us to operate the Franchise Tow Fee Program for the City of Vernon Police Departrnent. Our site is operative, our oftice functional, our required insurances in place and our economic viability and professional commitment unwavering. We would very much like to be selected to work with you. consideration of U.S. Tow for this contract. Stephanie McColgan Vice President and Secretary/Treasurer Presidenl/CEO 111 INTRODUCTION U-S. Tow, lnc. has served as the Official Police Garage for the Newton Division of the Los Angeles Police Departrnent for the past 10 years. In this capacity, we have been responsible for towing and storage services for the LAPD, the Department of Transportation, the Los Angeles Unified School District and other City ofLos Angeles Departments. During those years, we have developed strong and impeccable guidelines for the conduct of our business. We also have developed strong ties to the community which surrounds our facility and of which we consider ourselves a part. If selected to become the Franchise Tow Fee Program Contractor for the City of Vernon Police Department, we would view owselves as having a specific contractual obligation to Vemon and it is twofold: (1) every single day ofthe year and every single hour of each ofthose days we must provide an organized, timely response to the officers ofthe Vemon Police Department to pick up and tow vehicles and there can be no lapse in this performance; and (2) at the time that a vehicle is released to its owner, we must provide careful, courteous, empathetic service throughout the release. We must additionally create accurate and complete paperwork as part of this entire process. For those vehicles that are not released and must instead flow through the lien process, a completely different set ofrules govems. This process also requires stringent contols and strict compliance with the law. We will be dedicated to providing service to the City of Vemon while, at the same time, maintaining strong standards of quality and safef for our customers - just as we curently do for the LAPD. U. S. Tow has through the years of its operation developed strong training processes for evory one of our staff persons. We consider these to be the cote of our association with the LAPD, DOT, other City agencies as weli as our private clients. We continuously leave no detail ofour employee trairung to chance, making every effort to provide our staff with training that is comprehensive and meaningful. As a result, we are able to keep customer complaints to a minimum. U.S. Tow has always supported involvement in the community in which we work. However, since his acquisition of the business in 2013, Moshe Ben Dayan has made a particular effort to increase the community involvement of the firm. Mr. Ben Dayan understands that investment in the community in which he works represents an investment in U.S. Tow itself. As you evaluate us, we want you to understand that we at U.S. Tow will work very hard every day to provide the very best service to the City of Vemon, the members of Vemon's Police Force and the customers of our firm. Moshe Ben Dayan has had a sterling record of performance at his Classic Tow, lnc. dba Tip Top Tow Service for 25 years as his references and contracts will attest. We bring to this submission our extensive past OPG experience, Idr. Ben Dayan's exaertise and the professional qualifications and dedication of our staff We do Dot require a site; *'e have one-We do not require a imctioning office with all of the latest computer and security equipmeng we have iL We do not reqdre tow equipmaen! we have the best. We undershnd that the Reguest For Proposat for the ietting of the Franchise Tow Fee Program contract is oompetitive, brtr we ask that you consider our past experience with the LAPD, our long- term operation and staying power, our relationship with the community and ow commitoaent to sfroug performance at all times and in all circursances- VEHICLE IMPOLIND INFORMATION CENTER The future of towing management is happening today at U S' Tow' Inc- with our Vehicle l-p.""a 1"f".-"rio" C""tL OUC). Our VIIC featutes were developed by us with the help ofiaw enforcement and have been ers' Thi sysem is not an off-of-the-shelfpr us and our law enforcement ctents to oversee t provides c d to be used bY municipalities, but also contains a free publi for use by the general public. VIIC REPORTS The VIiC system provides our law enforcement customers with real-time reconciliation anJ auditini of remitted fees through a computer system that carrnot be altered' This [u"* proiid". uery readable pDF reports or reports that can be downloaded into a cSV frl" fo, ih" D"p.tt-Lnt's use in daily oversight MlC system features include: . Detailed monthly activity reports which show all impound and storage activity; o Vehicle reports which show vehicle date in ald date out; . Vehicles by "hold" status; e Gross revenue remittance reports; and . Vehicle release fee remittance reports. LAW ENFORCEMENT ACCESS AND INFOR.N{ATION The VIIC system allows authorized personnel to quickly and accurately track vehicles' thus ensuring the proper collection of fees for towed and impounded vehicles. Through secured Inte et acceis http://www.opglaviic.com orby stand-alone computers located within authorized law enforcement facilities, users can obtain immediate access to information pertaining to impoundetl vehicles 24 hours per day 7 days per week' This fuJormation consiss of several components including vehicle inventodes by vehicle make, license plate, VIN and original location of the impou:rd' PI]BLIC ACCESS AND INT'ORMATION Although the i:rformation available to Iaw enforcement agencies is more comprehensive that that available to the general public, the VIIC system also provides the public with valuable real-time information which facilitates the location of impormded vehicies. *itn tU" VUC .y.,em, the public can determine the location ofvehicles through Intemet arcess. Requirei search iriformation includes the license plate number and VIN' Once the vehicle is located, the \IIIC system provides the U'S Tow name and address' directions to or:r facility, release Lours,lees inc''rrred 21d 3 5imF1e matix by which fees can be calculated. 2 GENERALSCOPE OFWORK/ WORKPLAN FACILITY U.S. Tow's facility is a point of great pride for its owner and management. Our facility consists of state-of-the-art construction and contains clean, well organized, modem evidence hold, ancillary storage, dispatch and office space. It is situated on a fully concreted lot which is meticulously maintained. We pride ourselves on the image that is conveyed to the govemmental agencies with which we are involved, the public that we serve and the surrounding community and this image is carefully monitored. Our location complies with all City of Los Angeles zoning requirements for a towing operation and auto park, with a zoning designation of M3-1, and no Conditional Use Permit is required. We believe that U.S. Tow sets the bar for the rvay in which a towing operation facility should appear. Our property contains 174,240 squarc feet (4.0 acres) with aluminum and steel fencing which is eight feet in height and is topped with concertina wire. The yard has concrete flooring and contains capacity for 750 vehicles. Because ofthis large capacity, we are able to store impounded vehicles for as long as is deemed necessary by the Police agency involved. The yard is very well lighted and there are 50 cameras providing 24-hour video suweillance (archived for a minimum of 180 days). Our storage yard is immediately adjacent to our business office and is attended at all times by our staff members. U.S. Tow has personnel on-site 24 hours per day 365 days per year and we are open to the public between 7:00 a.m. and 7:00 p.m. seven days per week 365 days per year. We are also always available to accommodate special City events. Our property has been leased to U.S. Tow on a long-term basis. Our property lease was renegotiated shortly after Moshe Ben Dayan acquired the company in 20 1 3 . The initial lease term is for five years and runs from September,2013 to September, 2018. Following that period, we have two oplions of five years each, with the lease ultimately terminating in 2028. Ad ministrative Facility Our facility contains approximately 12,600 total square feet ofbuilding area and houses four separate personnel offices, dispatch, accounting, a filing room for auction records and other files, a lien sale area, an IT area, a classroom/break room for company and community use, an Evidence Hold Area and ancillary storage space. Evidence Eold Area This 2,600-square-foot secure area has 24-hour surveillance and limited access with specific rules for entering and exiting. It is equipped with two roll-up doors for unobstructed access and has a capacity of 10 vehicles. There is an additional secondary E ridence Hold Area which is protected by one metal roli-up door and a bullet proof ballistic glass pedestrian door as well as an evidence propefiy room Our Evidence Hold AIe" miu rp".ifically designated inspection area which is accessible only to designated U-S. Tow personnel and Police ofEcials. Indoor WorkshoP our facility has an indoor rvorkshop for the storage of h€a\T equipment. our facility additionaliy contains one four-post hydraulic lift, two air compressors, three propane forklifts, one tire changing machine and one digital scope camera' Physical Location The facilrty of U. S. Tow is located at2ll9 East 25s Street, directly across 25h Street from the northem boundary of the City of Vemon. TOWEQUIPMENT The staff and management of U.S. Tow, Inc. have many combined years of experience with various types of tow equipment. This experience has resulted in the knowledge that deployrng the correct equipment is critical to the e{ficiency and success of official Police fo* opeiution. All of ouitow equipment is equipped as provided in the California Vehicle Code. Another very important element for our operation is that our tow drivers have the best and most appropriate equipment to complete tasks in a damage free and expeditious- . manner. Tir'e area in which we are locatid has a diverse impound environment. Vehicles often are stripped of major components such as wheels, engines and body panels and sometimes aie bumed and/or wecked At the other end of the spectrum, we handle custom and high value vehicles. our equipment, including flatbeds and wheel- lifustandard duty trucks as well as heavy duty equipment including trucks and a trailer, is engineered to aicommodate these diverse situations in a timely and efficient mamer. our wheel-lift/standard duty trucks have been engineered and manufactured to be eflicient and fast, thereby providing for the immediate removal ofvehicles from major thorougMares. With these trucks, peak hour tow away zones can be cleared expediiously to relieve traffic congestion and provide the public with clear paths to their destinations during hearry traflic periods while allowing city personnel to respond to other duties wifhout unnecessary delays. With the utilization of experienced and trained _ personnel, an impounded vehicG can be removed in just minutes by a wheel-lift/standard duty truck. Wfrelt-tlts additionally provide damage free towing by liftirg vehicles by only their tires. Body panels, front ends, bumpers and under carriages are not touched by the towing unit, theriby ensuring damage fiee handling of towed vehicles. Wheel- lifl/stand;d duty trucki also allow efficient towing from parking garages and towing ftom off-road areas. our flatbed carriers have been selected to provide efficient and damage fiee vehicle removal and transport- vehicles with extensive damage, missing wheels or which are heavily burned are suited for removal by flatbed. Flatbeds also are well suited to hybrid, electric, exotic and custom vehicles. In addition, buik items such as cargo from damaged vehiclei, large or healy vehicle components from "chop shops," motorcycles or stolen vehicles can-be safely loaded onto flatbeds to provide damage free transport with minimal loading time. Flatbed carriers also provide the capability to transport two vehicles at the s=ame time, thus allowing us to respond quickly and efficiently when requests for service are made in proximate geographic locations or when requests are made in a narrow time frame. Our choice of Kenworth and Hino chasses is based upon their capability to handle two vehicles at once and.ior to ffansport healy and/or oddly shaped targo iafely. Our heavy duty trucks, with their adjustable booms and five-ton lifting capicity, and ow heavy duty trailer are available for the heaviest requirements, including the iowrng of large and oversized vehicles, and again attest to our well- rounded, complete towing capability. Our drivers are trighly trained to operate all of our tow units. In particular, flatbed units require highly skilled drivers with a thorough knowledge ofthe machinery involved. ttrey also are trained to unlock locked vehicles, a f?equent request from our Police clients. Our staff is trained to operate units with the priority of safety to themselves and to the public they serve. Continuing education enhances their knowledge base and ability to perform the tasks involved. If selected to be the official Poljce Tow for the city of Vemon Police Department, we will immediately file with the Department the name, address, date ofbirth, driver's license number and all other information required relative to each of our drivers. We will also notiB/ the Departrnent of any driver no longer employed by us as well as the identity of any driver rvhose license is suspended. our training procedures are in writing and a copy will be provided to the vemon Police DepartLint. U.S. Tow, Inc. also is a member in good standing of the Califomia Department of Motor Vehicles Pull Program. Within our facility, the use of forklifts with special attachments provide efficient and damage free vehicle movement and./or vehicle release. our forklifts are powered by liquid propane, providing low emission levels and reduced carbon monoxide release. U.S. Tow constantly monitors trends in tow equipment, vehicle impounds and safety practices. It is tkough this due diligence that we are able to provide our clients and the motoring public with the highest level of safety and service. U.S. Torv has a total of 11 tow units, including three wheel-lifts, five flatbeds, trvo ,,rreckers and one tractor, We also have one trailer. In addition, U.S Tow has access to the 23 trucks of Tip Top Tow Service in case of a large emergency operation or a disaster operation. A listing of the tow units of U.S. Tow is provided on the following page. TWO-WAY RADIO COMMI]NICATION EQTIIPMENT U.S. Tow, Inc. uses Kenwood hardware for its two-way radio system The system employs mountain-top repeaters to maximize coverage area and provide reliable, quality communication, thus enabling instant access to our fleet ard persomel Our two-way radio communication equipment also sends and receives Police tow requests between dispatch and our tow units on a first prioriry basis. Through its use, all of our clients benefit from faster service, increased efficiency, quick schedule or task changing and higher productivity. DISPATCE COMPONENTS U.S- Tow, Inc. utilizes an efficient dispatch system which featues three components - proper tools, adequate staffing and management oversighl. Our use of vehicle tracking and computerized dispatch is integrated to maintain the highest level of service. Our system includes time stamping ofall requests received as well as notation ofthe exact time the request is assigned to a tow unit, the time the tow unit arrives at the scene ofthe request and the time that the tow unit retums to the U. S. Tow facility. Our system also assigns a number to each tow request for tracking purposes. Our dispatch terrninals are dedicated to the flrnction of dispatch only. Our radio communications equipment sends and receives Police tow requests between dispatch and the tow units on a "first priority" basis. The dispatchers of U.S. Tow are trained inthe effective use of radio equipment in order to maximize efficiency. The dispatch oflice is equipped with a telephone system capable ofreceiving tow requests on a "first priority" basis and dedicated telephone lines ensure "firsr priority" to "Police" calls. Dispatch is a dedicated function on a 24-hour per day, seven-day per week, 365-day per year basis. Dispatchers are available to release vehicles seven days per week between 7 a.m. and 7 p.m. and for a minimum period of four hours after any special event. Every member of our office staff is cross-trained in order to provide an excellent service standard in the execution of dispatch duties. INT'ORMATION TECHNOLOGY KNOWLEDGE The computer system ulilized by U.S. Tow is the Impound Management System/Information Management System (IMS). It is used for both dispatch and accounting. The program utilizes functions which provide dispatch, vehicle inventory TOWI]NTIS U.S. Tow, Inc. owns 11 tow units and one trailer, as follows: Unit I Twe Year Make Weight I(lbs) | vr'r 11 Wheel-lift 2009 Dodge 5500 19,000 15 Flatbed 2010 Hino 258 25,500 19 Flatbed 200s Kenworth T-300 26,000 22 WheelJift 2005 Ford F-550 19,000 26 FIalbed 2006 Kenworth T-300 26,000 27 Flatbed 2006 Kenworth T-300 26,000 13 Wheel-lift 2013 Chevy 3500 HD 15,000 20 Flatbed 2015 Peterbilt 26,000 25 Wrecker 2014 Peterbilt 54,000 16 Wrecker 201s Kenu,orth 35,000 80 Tractor 2007 Freishtliner 80,000 81 Trailer 2015 Landoll 97,000 7 search, property removal with receipt, inspection ofa vehicle with receipt, evidentiary t otd orea searcl and auditing, lien processing including the removal of liened vehicles, MN verification of make and model, cash on delivery options and private property impound tracking. Not all employees are granted access to sensitive information contained in the tow progam. Only management and ownership particular vehicle. Any changes made in the tracked tfuough an exception report. The e y rnanagement io ensure that no unauthorized changes have been made to any computer record. The programs also have a fleet flrnction by which u.S. Tow can maintain fleet data as well as a-n accounting flmction for maintenance of accounts payable and acc receivable. IMS also has reporting functions that allow us to keep daily, weekly and monthly internal reports. our accounting department additionally uses QuickBooks to maintain a checks and balances systei foi all accounts. Quickbooks provides U.S. Tow with a controlled method by which to track accounts, print statements and maintain a ledger for monies that flowin and out of the company. Quickbooks Pro is used to pay bills, record payroll, reconcile cash and keep track ofvendor and employee ledgers and advances' A daily back-up ofour computer system ls completed and stoled at a remote location. An ouisi6e firm monitors this back-up on a daily basis. We additionally have software support readily available for our tow progtam. All files,are backed up several times per day and rve have a working generator in case of a significant power failure' Our computer system, software and tow progtam are set up to generate franchise fees (which are placed in a separate account) and impound information and the safeguards are in place to monitor these fimctions at all times. If U.S. Tow is selected by the City of vemon Police Departsnent to be its oflicial Police Tow, Police personnel will b assigned a user name and password which will allow them access to this syslem on a24/7 basii. as such, Police perionnel will be able to electronically view all documents as well as to scan and pnnt the documents and thereby have a physical copy' our dispatch, tow lot management, impound and franchise fee software has a long history of use within U.S. Tow. Our hardware has been carefully selected to provide both reliability and ease of use. Computer work stations, servers, telecommunications and video surveillance (the Kantech System) have been chosen and implemented to provide the highest levels of security, accuracy, accountability and service MONTHT,YREPORTS If selected to be the official Police Tow for the city of vemon Police Deparhrent, u S' iow will submit a monthly report to the Chief of Police and Finance Director which, as per the City of Vemon requirement, includes the following: *Total Police ImPounds. +Nurnber of times dispatched by the Vemon Police Departmenl +Number of calls resulting in impounds. *Number of vehicles sold on lien sale under authority of section 3072 Civll code and reporting said lien sales as per authority of Section 2-2705 CVC' *Number of vehicles sold under authority of Section 3073 Civil Code' xNames and addresses ofbuyers and description ofvehicles when sold' *Number of calls answered in which time beyond one hour was required' EVIDENCE HOLD VEHICLES u. s. Tow, Inc. has l0 years of experience as an oPG for the city of Los Angeles Police Department and thus of dealing with vehicl are on "hold" for evidence or require-processing b the owner ofU.S. Tow, has 25 years of experien s and maintaining the intignty ofine "chain of custody'' in conjunction with his other public u!"r"y to#rrg opera:tions ttrough his firm Classic Tow, ice' All of our personnel are acutely aware of the importance evidence holds- A set of specihc steps are c )nsistently e that vehicles are not mishandled and that the "chain of custody'' is maintained at all times' Aii ofou, personnel receive training on how to deal with vehicles from the moment a call is generated urtil the final disposition ofthe vehicle occurs' o Dispatchers advise drivers of a request for service forawehicle that requires special handling due to evidence or criminal lab processing' . Drivers request from the impounding officer or the offrcer in charge at the scene of the impound whether any special handling is required so as nol to touch surfaces of a vehicle, not to enter a vehicle, not to disturb possible material under or on a vehicle or any other special requests dealing with the haadling of the vehicle. . Once evidence hold vehicles arrive at the storage yard, drivers sigrr the Evidence l,og Book noting the time, date, year, make, model, color, VIN, license and names of any persons who will enter the Evidence Hold Area in conjunction with the vehicle. . Following placement of a vehicle or components of a vehicle within the Evidence Hold Area and the securing of the Hold Area, drivers retum to the office to notate the date and time of completion ofthe vehicle and/or vehicle comPonents Placement. . Drivers receive instruction on the handling of vehicles utilizing our equipment so that the vehicle can be transported without disturbing fingelprints and/or other physical evidence contained on or inside it' As vehicles arrive at our location, they are entered into our vehicle inventory database and the Evidence Log Book. In order to veri$ the time of entry, U.S. Tow utilizes a time stamp along with the manual entry in the Evidence Lng Book. Within the vehicle database, a special "hold" is placed and this creates a flag which must be specifically acknowledged prior to any change such as aa authorized release by the agency placing the original hold on the vehicle. Often vehicles get released from "hold' status prior to the release of the vehicle to the owner or interested party. Vehicles that are released from a "hold" status prior to removal by the owner or interested party have specific notes entered in the vJhicle database as well as the agency, rulme, ID, date and time that the vehicle,s ..hold" status was removed. Associated paperwork is additionally attached to the vehicle record (CHP 180). Once the vehicle has had the "hold" released, it is removed fiom the Evidence Hold Area and placed in the general vehicle inventory. U.S. Tow has a segregated, completely enclosed evidence warehouse with a storage capacity of a minimum of 10 evidentiary/cnminalistic hold vehicles. U.S Tow also .iintair. an area that can be converted to a temporary secure hold area in the event ofa large scale cnme involving many vehicles or bulk items. A minimum of six additional vehicles can be secured in this area. Evidence Hold Area entry is limited to OPG employees and concemed law enforcement offrcials and video suweillance is used to enhance the security of vehicles within the Evidence Hold Area. An electronic record of the person, time, date and duration ofaccess is maintained. This is accomplished tkough entry system technology which features a magnetic lock system with unique entry key fob assigned only to management. The supplier of our entry control and electronic entry and exit recordkeeping is Kantech. The Kantech system features electronic recording and physical hardrvare that is secure and that provides access limited to management in order to ensure that the "chain of custody" is not compromised. AIl entnes are also noted in the Evidence Log Book. The elements of recording and recordkeeping of entry to our Evidence Hold Area allow management and 1aw enforcement to validate all access. The area has large, clear posting prohibiting entry. The Evidence Hold Area features ample lighting to aid detectives and/or evidence technicians in the processing ofvehicles. U.S. Tow also has a vehicle lift available on-site to aid investigators. Through all of these mechanisms, we ensule that only vetricles or vehicle parts that are held for evidence or criminalistic hold are stored within the Evidence Hold Area. 10 with respect to the city of vemon Police Departrnent, if u S Tow is selected as the Ofiicial irolice Tow, notification wrll be p ided by U.S. Tow to the Police Captain or his,&rer designee ofvehicles rvith a "hold" that are stored in excess of 72 hours. As per the City of iemon Police Deparrnent requirement, "holdJ'will expire 10 calendar days after the date of a tow unless otherr.r.ise extended by a Police Departrnent employee. LIEN SALE EXPERTENCE u.S. Tow, Inc. files for vehicle liens following califomia civil code Sections 3068.1, 3Oi I,3O/Z and 307 4 . Ultimately, not all liens started end in disposal through public _ auction, Many velucles are redeemed by registered owners, legal owners o1 autholld interested parties, thus accomplishing the intended purpose of notification followed by redemption. In the event that a vehicle is not redeeme outstanding lien and avoid the stockpiling of vehicles' auction has been perlormed for more than 10 years by by Moshe Ben Dayan via other towing operations that sells vehicles in a fair and impartial manner to the highest bidder. Our sale list is posted in public vierv at our facility a minimum of 10 days prior to the sale date, and vehicles are available for inspection one-and one-halfhours prior to the sale time on the sale date. we continually strive 1o improve levels of customer service to members of the pubiic who attend our rveekly auto auctions- U.S. Tow is bound by Califomia Civil Codes relating to the disposal of impou"gld vehicles. U.S. Tow ilso stnngently follows the fee structure outlined in the California civil codes that pertain to the proiessing of vehicle liens- If selected to be the official police Tow for the city of Vemon Police Department, u.s. Tow will supply a list of vehicles on a monthly tasis that we intend to lien sale prior to actual sale for approval by the Departrnent. wewrll additionally review any other elements of our lien sale operation requested by the Department. CUSTOMERSERVICE U.S. Tow takes extreme pride in its exceptional customer service The impound process is by its very nature a stress producing experience and we attempt in every possible way to expedite ihe process and make it as comfortable as possible. Registered owners redeeming vehiiles can expect to deal with employees who are well trained, courteous and profeisional and with i facility .rvhich is clean, modem and secure and which provides them with comfort in the event that they need to wait for appropriate paperwork, acceptable form ofpayment or a towing service for a disabled vehicle in order to complete the rel"uri pro"ess. u.S. Tow completely understands the responsibilrty for tfe proper release ofvehicles to parties who have a legal right to take possession and we take ull n"...rury p."cautions through established procedures throughout the Ielease p_rocess. Our personnei are trained to verifu that a proper release has been issued by us or by the 11 relevant governmental impounding agency pnor to the release ofvehicles that have either a statuto! or evidence hoid. A dedicated computer system is available to check the ..scofflaw, status ofvehicles prior to their release. Personal Fopefiy is released to identified, authorized personJ and is inventoried and notated on the vehicle record. Our staffalso is trained to answer general questions regarding the disposition ofvehicles and lien sale auction information. Computer equipment with access to our vehicle inventory software is available to handle high-volume release situations COMMUNTIY SUPPORT AND INVOLVEMENT U. S . Tow understands the importance of support of and involvement in the local community. Even though rve are physically located in an industrialized portion of the City of Loi Aageles, we are well aware that there is a significant communrty of residents surrounding our site. As such, it has been our continuing philosophy of operation to identifu and support portions ofthe community and community projects in need of, financial sponsorship and the donation of other assets. We additionally have a well appointed ilassroom/break room at our facility which we offer for commudty use' t2 U.S. TOW, INC. TOW RATES/FEES under 10,000 GVWR Towing/recovery worl:ifiansport is assessed portal to portal. There is no fee variation for night tows. Storage/impoundment rates are the same for day and night. our release hours are 7:OO a.m. - 7:00 p.m. and there are no after hours releases. Towing rates are subject to 30-minute increase increments after the first hour' Storage for less than 24 hours is charged as one day. Afrer 24 hours, storage is charged per calendar day. Service calls are based on a one-halfhourly tow rate. Vehicles not redeemed within 72 hours are subj ect to lien sale/notice fees of $70.00 - s100.00. A11 City vehicle tows within 30 miles are free- AII City vetricle tire changes within 30 miles are free. AII towing and storage mtes are the average of those charged to the Los Angeles Police Department, the Califomia Highway Patrol and the Los Angeles County Sheriff s Departrnent. U.S. Tow, Inc. is open to negotiating the-.!Ivith the Crty of Vemon. i{owev"., *" ut. aiutng foSdfre of 77o of gross rec}ipts which is the amount that we currently charge L.{!D. 13 $s5 00 ABILTTY OF U.S. TOW, INC. TO PERFORM TI{F', NECESSARY FUNCTTONS U.S. Tow, Inc. was originally founded as a Califomia "S" corporation in 1983 The company was purchased by Moshe Ben Dayan in 2013 Mr' Ben Dayan is the sole ownerlPresidenucEo and owns 100% of the corporation. u.S. Tow, lnc, has its only location at 2119 East 256 Street, Los Angeles, CA 90058- The firm has a total of 19 employees. STATE AND CITYLICENSES U.S. Tow, Inc. is licensed to operate in the State of California and the City of Los Angeles. Our licenses include City of Los Aageles Parking Occupancy Tax M; City of Los Angeles Professions/Occupations; City of Los Angeles Police Commission Permit for Towing operation; city of Los Angeles Police commission Permit fol Mastel Auto eark; City of Los Angeles Police Commission Permit for Auto Park; and State of Califomia Department of Motor Vehicles Motor Carrier Permit. EXPERIENCE OPERATING A COMPLEX BUSINESS As stated above, Moshe Ben Dayan purchased U.S. Tow, Inc- in 2013. Mr. Ben Dayan came to the purchase with a strong understanding ofthe highly regulated and complex operations oi an Official Police GaragelPolice Tow. Since his prllchase of U.S. Tow, Mr. Bin Dayan has been working to improve the already strong operations and lerrel of service of U.S. Tow's Newton Division oPG. Based upon commendations that he has received from members ofthe Los Angeles Police Departrnent, he appears to be succeeding. In addition to U.S. Tow, Mr. Ben Dayan owns and operates Classic Tow, Inc. dba Tip Top Tow Service. He founded and has owned and operated this company since 1989 and it has been his full-time and only business involvement until his purchase of U.S. Tow. Tip Top Tow Service is the official Police Tow for both the cities of Santa Monica and eeverty ttilts. The firm has worked in this capaclty for Santa Monica since 1993 and for Beverly Hills since 2012. Service to these entities is highly regulated and involves impounding ofvehicles including owner requests, statutory holds and evidence holds as well as the roadside servicing of city-owned vehicles and taffrc accident assistance. Mr. Ben Dayan has additionally participated in the California Highway Patrol's (CHP) rotation Tow Service Agreement (TSA) since 1992, providing general towing and impound and storage services. Additionally, Mr. Ben Dayan is a Freeway Service Patrol provider for the Los Angeles County Metropolitan Transportation Authority (LACMTA), providing freeway roadside services to stranded motorists since 2005. The contracts let 14 by thrs Agency are highly regulated with scheduled and random inspections of tow truck units and facilities conducted by LACMTA itself as well as by the State of Califomia Department of Transportation (Caltrans) and a special unit ofthe CHP known as "David Units." The level of regulation imposed by the CHP's David Units is unequaled in the towing industry, with strict enforcement ofrules and regulations as well as of drivers and trucks in the field through monitoring by GPS, Caltrans and the CHP itself. The confiacts of LACMTA mandate that detail be paid and rules adhered to relative to a multitude of policies and procedures and that standards be stnctly enforced. Moshe Ben Dayan and Tip Top Tow Service have never had a contract fail to renew due to substandard service or violation of any ru1es and,/or regulations. The successful operation of a tow business is complex, with many areas of responsibiliff. We are responsible 24 hours per day 365 days per year for dealing with the vehicles and personal possessions of many people, some ofwhom are angry about having been towed in the first place, distraught over damage to their vehicle or who are dealing with the consequences of having a family member or fiiend injured in an automobile accident. We are responsible 24 hours per day 365 days per year for dealing with law enforcement and the complexities of evidentiary holds, constantly being attentive to the issues involved in the potential contamination of important evidence. We are responsible for conducting lien sales with careful attention to the legalities ofthis procedure such that we do not err either on our owrl part or for the interests of the customer. We are responsible to our employees for the creation of a work environment that is comfortable, clean and conducive to minimizing the stress of a business which requires proficiency in taking calls, dispatching drivers accurately and quickly and performing tow services in an efficient, orderly and courteous manner. We are responsible to the many vendors with whom we do business including insurance providers and equipment and parts providers and we must be yigilant at all times regarding the licenses and permits that we hold. And, we are responsible to the communiry to maintain a top-notch facility which is environmentally conscious with minimal noise and pollution and to participate in community events and sponsorships. CAPABILITY A-T[D EXPERIENCE OF KEY PERSONNEL MANAGEMENT Moshe Ben Dayan, Presidenf/CEO. Moshe Ben Dayan is a true "pro" withm the tow industry. His first involvement with the industry was in 1989 when he founded Tip Top Tow Service in Santa Monica with one truck. Since that start, he has built Tip Top Tow Service into a strong, successful corporation now kmown as Classic Tow, Inc., dba Tip Top Tow Service. Tip Top Tow Service has a facility in Santa Monica wholly owned by Mr. Ben Dayarq 19 trucks and 23 employees. Among numerous goverrmental and private affrliations are Official Police Tow contracts with the Cities of Santa Monica and 15 Beverly Hills, Freervay Service Patrol contracts lvith the Los Angeles County Metropolitan Transportation Authority and sewice contracts with the Los Angeles County Sheriff s Departrnent, the Califomia Highway Patrol, the U.S. Postal Service and the Federal Bureau of Investigation. Mr. Ben Dayan purchased U.S. Tow, Inc, in 2013 and through thrs enfity is the Official Police Garage for the Nerton Division of the Los Algeles Police Departrnent. U. S. Tow additionally provides service to the Los Angeles County Sheriff s Department and the California Highway Patrol among others. Mr. Ben Dayan's specific responsibilities at U.S. Tow include overall management of all operations including financial operations; company policy including contract procurement and compliance; project staffing; customer relations; community relations; and equipmenVfacility procurement and operations. The resume of Mr. Ben Dayan is included as an attachment to this Proposal. INTERNAL STAFF Mohammed Jaweed, CFO. Mohammed Jaweed has had a wealth of experience as Controller for several major companies. He is extremely skilled in financial, accounting and bookkeeping functions. With a more than 25-year background in financial reporting of all kinds, he brings to U.S- Tow the ability to review the daily activities of the Newton Division OPG including monitoring ofvehicle release fees, gross receipts fees, collections and business license fees. He is additionally skilled in the rnonitoring of auditors and insurance companies to maintain our liability and Worker's Compensation insurances and to manage all internal and extemal papoll reporting. Mr. Jaweed worked as an extemal/outsource resoutce for Mr. Ben Dayan for more than 20 years prior to his employrnent at U.S. Tow. The resume of Mr. Jaweed is included as an attachmert to this Proposal. Richard L. Kettering II, General Manager. Richard Kettering has been an employee ofU.S. Tow, Inc. since 2009. As such, he is extremely knowledgable regarding all ofthe operations ofour business- Short of calling him a skilled "jack of all trades," it is certainly appropriate to note that his responsibilities are and have been sigmficant and multidimensional. h/r. Kettering has management experience; he is knowledgable with regard to all aspects ofthe OPG system; tow driver safety compliance; complaint/problem resolution for customers and Police agencies; employee relations including llring aad drsmissal; lien sales auction operation (Mr. Kettering is the auctioneer) and paperwork; and security camera content review. The resume of Mr. Kettering is included as an attachment to this Proposal. Stephanie McColgan, Assistant Manager. Ms. McColgan brings a unique background to U.S. Tow. She has worked rvith Moshe Ben Dayan since the start of Tip Top Tow Service in 1989 and, as such, is knowledgable with respect to all aspects ofthe towing industry. At Tip Top Tow Service, she was responsible for the management ofthe banking/financial aspects of the day-to-day business; payroll computation; daily receipts 16 computation; serving as a back-up dispatcher; resolution of difficult customer, staff and vendior issues; and community/public relations interface. At U.S. Tow, Ms McColgan prepares lien sale auction paperwork and vehicle release paperwork. She is responsible ior the banking activitres of the firm as well as human resources/empioyee applications and other ^roiiut.d pup".*ork. Ms. McColgan also assists the General Manager with other overflow business matters associated with the company The resume of Ms' McColgan is included as an attachment to this Proposal. ADMIMSTRATIVE STAFF The administrative staffof U.S. Tow, Inc. is carefully trained and is knowledgable in the following areas related to company operations: computer software; dispatch; impound reporting; vehicle release procedures; vehicle property removal procedures; statutory hold vehicle release procedures; evidence/criminalistic hold vehicle procedures; lien sale proeedures and fees; two-way radio use; telephone system and customer service techniques and procedures; criminal activity reporting; and the prioritization ofcalls for service. The administrative staff of U.s. Tow also receive continuous training in such aspects of company operations as dealing with hostile people and developing solutions to hostile situations; making effective decisions and implementing those decisions; understanding and adapting to the diverse ethnicities and cultures of customers, and eslablishing empathy for customers. TOWDRIVER STAFF The tow driver staff of U.S. Tow, lnc- is carefully trained and is knowledgable in the following areas related to its work: highway safety; towing techniques; rollover and recovery techdques; laws pertaining to oPeration oftow trucks; customer service; automotive lockouts; and tow tnrck maintenance. Our tow truck drivers also receive continuous training in the following areas. computer software; impound report reading and understanding; vehicle codes; care and custody ofvehrcles; forklift operation; vehicle release procedures; vehicle property removal procedures; vehicle inspection procedures; verificaiion ofproper release ofevidence hold vehicles; verification ofproper release of statutory hold vehicles; proper handling of evidence/criminalistic hold vehicles; proper placement and spacing ofvehicles; criminal activity reporting; vehicle identification (license plate and MN); prevention ofheat stress, dehydration, exhaustion, stroke and related problems: battery safety; prevention ofblood bome pathogens; fire extinguisher use; back injury prevention; and eye protection. Al1 dnvers must hold and maintain Level 1 Certification from the Califomia Tow Truck Association A Staff Flow Chart for U.S. Tow, Inc. is provided on the following page. l7 U.S. Tow, lnc. Staff Flow Chart Moshe Ben Dayan President/CEO Walter Ruckwardt Yard Manager Stephanie McColgan Assistant Manager 13 AI-T'IDAVIT OT' NON.COLLUSION BY CONTRACTOR STATE OF C.ALIFOR]\'IA COUN_TY OF LOS .j\NGELES ) )ss ) Moshe Ben Dayan being first duly swom deposes and says that he/she is of Owner/Pres ident/CEO (lG.n'Sole Ovrcd. . pannc,, , ,p,es d.n( ..SlcEl,ry., or ortEr prcpir tIrc) U. S. Tow, inc. {rtrr.n rEmorbidd.., who submits herervirh to the City of Vemon a bid./proposal; 'ihar all statemenrs offact in such bid./proposal are rrue; 'fhai such bid'/proposar was nor made in the interest of or on bchalf oi-any undiscrosed penon,pannenhip, conrpany, associarion, organizalion or corporation; That such bid,/proposal is genuine and not collusive or sharn; That said.bidder- has not, directry or indirectry by agreemenr, communicarion or conference rvith anyoneatlenrpted to induce acrion prejudiciar ro rhe inierest of rhe cir,v of Vemon, o. or"uy ott". uiaai, o.anyone else interested in rhe proposed contract; aod firrther That prior to thc public opening and readLng of bids./pn:posals, sajd bidder: a. Did nor direcily or indirectly, indrrcc or solicit anyone else to subnrit a false or shambid,/proposal: t) Did Dot directly or indirectry, colude, conspire. conni'e or agree *.th anyone erse that saidbidder or anyone erse '*'ourd submir-a farse oi sham bid./proposar, or that anyone shourd refrai.lronr bidding or rvirhdraw his4rer bid/proposal; a Di9 not, i, any lnanner, direcrly_or indirectly seek by agreemenr, communication or conferencewirh anyone to raise or fix rhe bid/proposal pri". oriuiE uioao o, of anyone erse, or to raise orfix any overhead, profit or cost elemeni of trisltrer bid/profor"t'p;.", o, of tf,", oii,r,#J;;,"' 3:o::.:j':":lr^":'^,1,0,:.",1,r,.*-'t hivher bid,/proposal price or any breakdowa rhcreor, or :."::,1: :. " 5:Tt .-l -1 Tlg: inrormarion "i 0"1" - * rli r "" ;;;J.:' ; il ffi#,1;:: ff,Ill*,I;".""*11iI:,1I^Tll,jl "ynizarion,.bid depository,;; ;:";;;#,";,;;;; l1.x*:::*r:::1d^'_,1'jg_"lf :I,oi,a,ir,,.*..pi;;'iil;;;#;,il;,;r::.jxor penons rvho a panneship or orher financial interesr w.irh said bidd", i;'hiJ.;';;;.*. dre above infornration is conect 1;s1.. Owne r/Pres i dent/CE0 d Icefliry By: Date; 19 ivlarcl20il EXHIBIT C EXHIBIT C THE 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 e).tent 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. -16- EXHIBIT D EXHIBIT D LIVING WAGE PROVISIONS I{!d4-@tiyi!S Waqes: A requirement that Employers pay qualifying employees a wage of no less than $10.30 per hour with health benefits, or $1 1.55 per hour without health benefits. Ed@nll]Jlpd49elM: Employers provide qualifying employees at least twelve compensated days off per year for sick leave, vacation, or personal necessity, and an additional ten days a year of uncompensated time for sick leave. No Retaliation: A prohibition on employer retaliation against employees complaining to the City with regard to the employer's compliance with the living wage ordinance. Employees may bring an action in Superior Court against an employer for back pay, treble damages for willful violations, and attorney's fees, or to compel City officials to terminate the service contract of violating employers. -17- ORDINA}ICE NO. 1232 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF VERNON GRANTING TO MR. C'S TOWTNG OF SOUTH GATE, fNC., A FRANCHISE TOWTNG SERVfCES AGREEMENT WHEREAS, the City of Vernon (tshe "City" ) is a municipal corporation and a chartered city of t.he State of Cafifornia organized and existing under its Charter and the Constitution of the State of California; and WHEREAS, on October 2, 20t2, the City Council of the City of Vernon adopted Ordinance No. 1198 adding Chapter 48 of t.he Vernon Municipal- Code to establ-ish a non-consensuaL franchise towing fee,. and WHEREAS, on or about March 2015, the Police Chief issued a Request. for Proposals for the City's Franchise Tow Fee Program; and WHEREAS, t.he Cit.y Council- of the City of Vernon desires to grant a Franchise Towing Services Agreement Eo Mr. C,s Towing of South Gate, Inc . ,' and WHEREAS, t.he City Council of t.he City of Vernon is authorized by City Charter Section 8.9 to grant a franchise in the City of Vernon to any person, firm, corporation, or other entity and to set terms, conditions, resErictions and limitations by ordinance. THE CITY COI]NCIL OF THE CTTY OF VERNON HEREBY ORDAfNS: SECTION 1: The Cit.y Council of the City of Vernon hereby finds and determines lhat the above recital-s are t.rue and correct.. SECTTON 2: GRANT OF FRANCHISE. A non-exclusive franchise shal-} be, and the same is hereby granted by the City Courci] of t.he City of Vernon to Mr. C,s Towing of South catse, fnc., its fawful successors or assigrrs to provide officiaf non-consensual police towing services to the Vernon police Department. said franchise is further described and depict.ed in the Franchise Towing services Agreement, in substant.ially the same form as attached hereto as Exhibit A and incorporaEed herein by reference. SECTION 3: FRANCHISE TERM. Ehree Towing The franchise shafl endure (3) years, subject to the terms Services Agreement . SECTION 4: FRANCHTSE FEE. in ful-f force and effect for and condit.ions of the Franchise The grantee of the franchise, during the life thereof, will pay to tshe City five percent (53) of the gross annual receipts of the grantee arising from the use, operation or possession of Ehe franchise. SECTION 5: VERIFIED STATEMENT OF GROSS RECEIPTS. The grantee shall- file with the Cit.y Clerk of the City, within three (3) months after the expiration of the calendar year, or fractional- cal-endar year, fol-l-owing the date of the granting of t.his franchise, and within three (3) months after the expiration of each calendar year thereafter, a verified statement showing in detail the totaL gross receipts for t.he grantee derived during the preceding calendar year, or such fractional cal-endar year, from t.he provision of official police towing services within t.he limit.s of the Cit.y. The grantee shall pay to the City within fifteen (15) days af t.er the time for filing said statement, in l-awful_ money of the United States, t.he aforesaid percentage of its gross receipt for the calendar year, or fractional- calendar year, covered by said stat.ement. Any neglect, omission or refusaL by grantee to f il-e said verified statement., or to pay said percentage at the times or in the manner hereinbefore provided, shall- constitute grounds for the declaration of forfeiture 2 of this franchise and of all rights of grant.ee hereunder. However, grantee has the ability to cure under section 12. FurEher, the city is responsible for insuring that grantee has the appropriate financial institution information for electronic transfer of the franchise fee in a timely manner. Any del-ays caused by incorrect financial institution informat.ion shal1 not const.itut.e grounds for the declaration of a forfeiEure of t.his franchise. SECTfON 5: WRITTEN ACCEPTANCE REOUTRED. The franchise granted hereby sha1l not become effective until written acceptance thereof shafl have been filed by grantee with the City CLerk. SECTION 7: ABANDONMENT OF PRIOR FRANCHISES. The franchise granted by this Ordinance j-s in l-ieu of alI other franchises, rights or privileges owned by t.he grantee, or by any successor of t.he grantee Eo any rights under t.he franchise, for providing official police towing services throughout the limits of the City of Vernon as such limits exist at the time of the granting of t.he franchise or as they may thereaf t.er, except any franchise derived under Section 19 of Article IX of the Constitution as that section existed prior to t.he amendment thereof adopted October 10, 1911. The acceptance of the franchise granted by this ordinance shalI operate as an abandonment of all such franchises, rights, and privileges within the limits of city as such rimits at any time exist, in fieu of which the franchise is granted by this ordinance. SECTION 8: EMINENT DOMAIN. The granting of the franchise sha11 not in any way impair affect the right of the City to acquire the property of the grant.ee purchase or condemnation, and nothing contained in this franchise or by shall be const.rued to contract away, modify or abridge either for a term or in perpetuity the City, s right of eminent domain. SECTION 9: VAIUE OF FRANCHISE. By acceptance of the franchise, the grantee, for itself, its successors and assi,gns, agrees thats in any proceeding of any character before any courE, commission, administrative body, board of arbitrat.ion or other public authority, no great.er value shall be pl-aced upon t.he franchi-se in excess of the cost to E.he grant.ee of the necessary pubfication and any other sum paid by grantee to the City therefor at t.he time of acguisition. SECTION 10: NONCOMPLIANCE. If the grantee of the franchise grant.ed by this Ordinance fail-s, negl-ects, or refuses to comply with any of t.he provisions or conditions prescribed in this ordinance or the Franchise Act of 1937, and does not within ten (l-0) days after written demand for compliance begin the work of compliance, and afler such beginning does not prosecut.e the work with due diligence to completion, the City, by its City Council, may declare the franchise forfeited. The City may sue in its own name for the forfeiture of the franchise granted pursuant to this Ordinance, in the event of noncompliance wit.h any of the conditions Ehereof by the grantee, its successors, or assigns. sECTroN 11: coNFoRMrrY To RULES AND srATtrroRy REQUTREMENTS. The grantee of the franchise granted by this Ordinance sha1l comply with all of the ordinances and ruLes adopted by the City council of the city of vernon in t.he exercise of its police powers and not in confLict with the paramounts authority of the stat.e. Al_L work undertaken or performed pursuant to the provisions of the franchise shal-I be of the standard reguj_red by 1aw, and by any ot.her body or 4 governmental authority havj,ng jurisdiction in the premises. Where not in conflict wit.h Stat.e ]aw, or oEher governmentaL auEhority having jurisdiction in the premises, tow services shall be performed in accordance wiE.h the rufes and regul_ations and ordinances of the City. SECTION 12: IIIDEMNTFICATION. The grantee shall indemnify and hold harmfess the City, its officers, agents and employees, from all liability for damages proximately resufting from any operations under this franchise. SECTION 13: ASSIGNMENT. crant.ee shaII not assign or transfer any interest in the franchj-se without the express prior written consent and approval of City Council. Any unauthorized assignment or transfer of Franchj-see, s rights or obligations under this Agreement shal-t be nulf and void and shall- constitute a material breach by Franchisee of this Agreement. SECTION 14: PERFORMANCE BOND. (a) At the option of the City, grantee sha1l either (a) reduce or eliminate any deductibl-es or seLf-insured retentions with respect. to the City, its el-ected officials, officers, employees, agents, representatives, attorneys, and volunteers; or (b) file with the city clerk a corporate surety bond running to city and guaranteei-ng payments of Iosses and related investigations, claim administration and defense expenses. The bond shall be conditioned that grantee shal-I well and t.ruly observe, fu1fi]I and perform each term and condition of the franchise, and that in case of any breach of condition of the bond the amount of the penal sum tsherein shall_ be recoverabl-e. If City elects option (b) above, crantee sha1I file such bond within five (5) days after the adoption of this ordinance. (b) crantee shall- mainta.in the bond in fulI force and 5 effect throughout the term of this franchise, at grantee's sole expense. The bond shall be issued by an admiEted surety insurer and comply with the requirement.s of t.he Bond and Undertaking Law, codified in Code of Civil Procedure Sections 995. O1O et seg. This franchise shall be considered a ,,ficense or permit.., wit.hin the meaning of the Bond and Undertaking Law, sol-e1y for purposes of application of such Law to the bonding requirements of this section. SECTION 15: LfABILTTY. The grantee of the franchise under this Ordinance shalf be Iiable to the City for all damages proximatel-y resulting from the failure of the grantee to well and faithfully observe and perform any provision of the franchise or any provision of the Franchise Act. of L937. SECTfON l-5: Repeal . Any ordinance or part.s of an ordinance in conflict with this Ordinance are hereby repeal-ed. SECTION L7: Severability. If any chapter, articl-e, sect.ion, subsection, subdivision, paragraph, sentence, clause, phrase, or word in this Ordinance or any part thereof is for any reason hel-d to be unconstitut.ional or invalid or ineffective by any court of competent jurisdiction, such decision shal1 not affect the validity or effect.iveness of the remaining portions of t.his Ordinance or any part thereof. The city Council hereby declares that it woufd have adopted this Ordinance and each chapter, art.icIe, section, subsection, subdivision, paragrraph, sentence, clause or phrase tfrereof , irrespective of the fact that any one or more chapters, art.icles, sections, subsections, subdivisions, paragraphs, sentences, clauses, phrases or words be declared unconst itutional, or invalid, or ineffective. 6 SECTfON 18: Book of Ordinances. The City C1erk, or Deputy City Clerk, shaIl attest and certify t.o the adoption of this Ordinance and sha11 cause this Ordinance and the City Clerk,s, or Deputy City Clerk,s, cert.ification to be entered in the Book of Ordinances of the Council of this City. The Cit.y C]erk, or Deputy City cIerk, shalI cause this ordinance t.o be published or posted as required by 1aw. SECTfON 19: Effective Date. This Ordinance shall- go into effect and be in fuII force and effect at 1-2:01 a.m. on the thirty- first (31st) day after its passage. APPROVED AND ADOPTED This day of _, 20].5. Name : Title:l{,ayor / Mayor Pro - Tem ATTEST: City Clerk / Oeputy City Clerk APPROVED AS TO FORM: Brian W. Byun, Deputy City Attorney 7 STATE OF CAITFORNIA ) ) ss COUNTY OF LOS ANGELES ) I,, City Clerk / Deputy City Clerk of the City of Vernon, do hereby certify that the foregoing Ordinance, being Ordinance No. 1232 was duLy and regularly introduced at a regular meeting of the City Council, of the City of Vernon, held in the City of Vernon on Tuesday, August 4, 201-5, and thereafter adopted at a meeting of said City Council hefd on Tuesday, voEe : , by the following AYES: NOES : ASSENT: the City of Vernon. Execut.ed this _ day of (sEAr) , 20L5, at Vernon, California. City Clerk / oeputy City Clerk Councilmembers: Counc i lmeml:ers : Council-menibers: And thereaftser \4,as duly signed by t.he Mayor or Mayor pro-Tem of I EXHIBIT A CITY OF VERNON FRANCHISEE TOWING SERVICES AGREEMENT BYAND BETWEEN THE CITY OF VERNON AND MR. C'S TOWING OF SOUTH GATE, INC. COVER PAGE Franchisee: Responsible Principal of Franchisee: Notice lnformation - Franchisee: Notice lnformation - City: Commencement Date: Termination Date: Consideration: Records Retention Period Mr. C's Towing of South Gate, lnc. Jerry Brown, General Manager Mr. C's Towing of South Gate, lnc. 4421 Mason Street South Gate, CA 90280 Attention: Jerry Brown, General Manager Phone: (323) 249-0575 Facsimile: (323) 249-4998 City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 Attention: Daniel Calleros, Police Chief Telephone: (323) 583-881 1 ext. 1 14 Facsimile: (323) 826- 1 481 No earlier than thirty-one (31) days after approval by City Council of City of Vernon of ordinance granting franchise to Mr. C's Towing of South Gate, lnc. Three (3) years from Commencement Date, inclusive Payment is made by Franchisee to City pursuant to Section 3 of this Agreement. Payment is made to Franchisee by City pursuant to Section 5 of this Agreement. Three (3) years, pursuant to section 1S.3 CITY OF VERNON FRANCHISEE TOWING SERVICES AGREEMENT BY AND BETWEEN THE CITY OF VERNON AND MR. C'S TOWING OF SOUTH GATE. INC. This Agreement is made and entered into by and between the city of vernon ("city"), a california charter city and california municipal corporation, and Mr. c's Towing of soutir ' Gate, lnc. ("Franchisee'), a Police Towing company with its principal place of blsiness at 4421 Mason street, south Gate, cA 90280 (collectively, the "parties") to provide for towing services to the City. The Parties agree as follows: RECITALS WHEREAS, Franchisee shall provide police towing services to the City of Vernon as setforth in the Request for Proposal issued in or about March 2015, Exhibit A, and Franchisee's proposal to the city ("Proposal') dated Aprit 16, 20i5, Exhibit B, both of which are attached to and incorporated into this Agreement, by reference. WHEREAS, pursuant to chapter 48 of the vernon Municipar code, Franchisee has applied for a Police Towing Franchise ("Franchise"); and WHEREAS, the City Council has determined that Franchisee has demonstrated compliance with chapter 48 of the vernon Municipal code and has agreed to comply with allprovisions of that Chapter; and WHEREAS, it is required that city and Franchisee enter into this Franchise Towing services Agreement ("Agreement") for police towing services in the city of vernon, and WHEREAS, additional conditions have been imposed upon this grant of Franchise. NOW, THEREFORE, the Parties do hereby agree as follows: Section 1. GRANT OF FMNCH|SE. - subject to approval by the city council of the city of vernon of an ordinance granting the franchise and to the requisite thirty-one (31) days' waiting period before such ordinance- becomes effective, City grants to Franchisee a Police Towing Franchise authorking Franchisee to engage in the business of Police Towing as set forth in chapter 48 of the Vernon- Municipal code in the clty of vernon and to use the public streets and rights of way for such purpose. This grant is pursuant to the ci!y's Request for proposal and to Franchisee,s proposal for theFranchise- Franchisee is subject to the terms and conditions specified in chapter g.9 of thecha(er of the city of Vernon, the provisions of chapter 48 of the vemon Municipal code, theterms and conditions specified in all related resolutions, the terms and conditioni of this Agreement, the representations and assurances in Franchisee,s application for the Franchise. Section 2. TERM OF FRANCHISE. The term of this Franchise granted to Franchisee shall be for three (3) years, effectivefrom thirty-one (31) days afier the date upon which the city council of the city'of Vernon 2 approves the ordinance granting the Franchise (the "Effective Date") to the date that is three (3) years from the Effective Date, inclusive. Section 3. FRANCHTSE FEES. 3.1 Durlng the term of the Franchise, Franchisee shall pay a franchise fee tocity in an amount equal to 5olo of Franchisee's gross annual receipts arising from the use, operation or possession ofthe Franchise, which fees shall be assessed from the date on which the ordinance granting this Franchise became effective and in accordance with Section 4B.g of the vernon Municipal code and any Resolution adopted by the city council and in such other amounts as are set forth in any subsequent resolutions that may be adopted by the city council at any time during the term of the Agreement. 3.2 The Franchisee sha file with the City Clerk of the City, within three (3) months after the expiration of the calendar year, or fractional calendar year,-following the d'ate ofthe granting of this franchise, and within three (3) months after the expiration of each- calendaryear thereafter, a verified statement showing in detail the total gross receipts for the Franchisee deriv_ed during the preceding calendar year, or such fractional calendar year, from the provision 9l offiglg! police towing services within the timits of the city. The Franchlsee shalt pay io thecity within frfteen (15) days afrer the time for filing said stitement, in laMul money ofitre united States, the aforesaid percentage of its gross receipt for the calendar year, or fraciional calendaryear, covered by said statement. Any neglect, omission or refusal by Franchisee to file said verified statement, or to pay said percentage at the times or in the manner hereinbefore provided, shall constitute grounds for the declaration of forfeiture of this Franchise and of all rights of Franchisee hereunder pursuant to the procedures set forth in sections 11 and 12herein. However, Franchisee has the ability to cure. Further, the City is responsible for insuring that Franchisee has the appropriate financial institution information for electionic transfer of thefranchise fee in a timely manner. Any delays caused by incorrect financial institution information shall not constitute grounds for the declaration of a forfeiture of this Franchise. 3.3 Franchisee shall timely pay all required franchise fees to: City of Vernon Attention: Finance Director 4305 Santa Fe Avenue Vernon, CA 90050 Ea_ch payment shall be accompanied by a written statement, verified by the Franchisee or a dulyauthorized representative ofthe Franchise, sho ving In such form and detail as the Finance Director of the city of vernon may prescribe, the calculation of the franchise tee payaoie ty tneFranchisee and such other information as the Finance Director may require as material to adetermination of the amount due. 3.4 The first payment of the franchise fee will be due on September 15,201S,_and payments shall be due monthly thereafter on the 15h day of each month. 3.5 when Franchisee remits franchise fees to the city, such franchise feesshall be deemed timely paid only if delivered or postmarked on or before the due date. lf feesare not timely paid, Franchisee shall be subject to suspenslon or termination of the Franchisepursuant to section 14 0f this Agreement and/or to any other penalties which may be J established and assessed by the City, including, but without limitation, late fees assessed at the rate of five percent (5%). Section 4. TOWING SERVICES. 4.1 Franchisee shall provide Police Towing services, as set forth in Exhibit A, which is the City's Request for Proposals for Official Police Tow Services, and which includes, but without limitation, strictly adhering to the eligibility requirements, operating regulations, fees schedules, standards for tow truck equipment, standard rules of operation, response time, inspection, information regarding new or terminated tow truck drivers, tow driver training, and as set forth in Exhibit B which is Franchisee's response to the City's Request for proposals. All services by Franchisee shall comply will all provisions of federal, state and local law and regulation, including, but without limitation Chapter 48 of the Vernon Municipal Code. 4.2 Franchisee understands and agrees that, although the City is granting it a franchise as a police towing service, the City may requisition towing services from other service providers as set forth in Section 48.'12 of the Vernon Municipal Code, or if Franchisee is otherwise unavailable for any reason, in the reasonable discretion of the Vernon Chief of Police and including, but without limitation, suspension or termination of the Franchisee. Section 5. MTES. CHARGES AND PAYMENT. 5.1 The rates and charges for towing and storage in connection with this Franchise shall be established by the Franchisee. The prevailing rates prescribed by the southern Division of the california Highway Patrol, the Los Angeles police Department, and the Los Angeles County Sheriff will be considered when establishing these rates. The rate per impound shall be 9140.00 and the storage charge shall be $40.00 per day, unless or until otherwise modified by the City. A sign showing the approved rates and charges shall be conspicuously posted in the Franchisee's tow office and shall be posted in a conspicuous place in the interior of each tow truck operated by Franchisee. Franchisee shall provide vehicle owners the option of payment by Mastercard and Visa. Franchisee must provide for after-hours releases of vehicles, and may collect an after-hour release fee. As part of the award of franchise the Franchisee will be requested to establish an after-hours release fee not to exceed % of the impound fee in addition to other established fees. Section 6. REPORTS. Franchisee shall file a monthly towing report with the chief of police along with payment of its monthly franchise fees. The report shall be submitted to: Vemon Police Department Attention: Police Chief 4305 Santa Fe Avenue Vernon, CA g005a The report shall include the Information required by section 48.10(H) of the vernon Municipal code for Franchisee and its subcontractors, certified as true and correct under penalty of perjury by a responsible owner or official of the Franchisee. 4 Section 7. FMNCHISEE'S RECORDS. 7.1 The Franchisee shall maintain accurate and complete books and accounts of all revenues and income arising out of its operations under the Franchise and in a manner, which conforms to generally accepted accounting principles. Franchisee,s books, accounts and records, arising out of or related to its operation under the Franchise, shall at all times be open to inspection, examination and audit by authorized officers, employees and agents of the city. such records shall be kept at Franchisee's place of business shown in this Agreement for receipt of notices. 7.2 Franchisee shall require its subcontractors, if any, who perform police Towing services in connection with the Franchise to keep and maintain books of account and other records showing all business transactions conducted by such subcontractors in connection with the Franchlse. Franchisee agrees to use its best efforts to avoid duplication of reporting between Franchjsee and its subcontractors. Section 8. TOW VEHICLE AND DR|VER, REPORTtNG. COMPL|ANCE. AND IDENTIFICATION. 8.1 Franchisee shall maintain on file wlth the City, a complete and accurate listing of every vehicle operated by Franchisee for police towing services. Franchisee shall certify, in a form acceptable to city, that every such vehicle conforms with regional and state vehicle emission standards ("emission standards"), and shall provide documentation of compliance on written request of the city. Franchisee understands and agrees that failure to comply with emission standards may result in suspension, termination or non-renewal of a Franchise 8.2 Every vehicle operated by Franchisee and for police Towing services in the city shall bear the following identification: Franchisee's trade name, monogram or insignia, the Franchlse vehicle number, together with Franchisee's telephone number piinteo on botn sides of the vehicle. All lettering mentioned in this paragraph shall be not less than 2-114,'in height and not less than 5/6" stroke. The Franchisee agrees to remove the Franchise vehicle number and all other information within 30 calendar days after the Franchise is terminated or the vehicle is sold, transferred or taken out of service. 8.3 Franchisee shall file with the Vernon police Department, the name, address, date of birth, drlver's license number, and all identification required of any tow unit driver working for Franchisee, whether as an employee or as a contractor, which information shall be filed not later than ten (10) business days following the effec ve date of employment or engagement. Franchisee shall also notify the Vernon police Department within ten (10j business days of the following occurrences: the license suspension of any tow unii driver, and the end of employment, or engagement, of any tow unit driver with Franchisee. Section 9. INDEMN|F|CAT|ON OF Ctry. 9.1 Franchisee shafl indemnify and hord the city harmress from and against any and all loss, damages, liability, claims, suits, costs and expenies, fines, charges orpenalties whatsoever, including reasonable attomey's fees, regardless of the meiit or outcome of any such claim or suit, arising from or in any manner related to the services provided orbusiness conducted under chapter 48 of the vemon Municipal code or otherwise pursuant tothis Agreement. 5 9.2 Franchisee shall indemnify the City, defend with counsel approved by the City, protect and hold harmless the City, its officers, employees, agents, assigns, and any - successor or successors to the city's interest from and against all claims, actual damages (including but not limited to special and consequential damages), natural resources damage, punitive damages, injuries, costs, response, remediation and removal costs, losses, dema-nds, debts, liens, liabilities, causes of action, suits, legal or administrative proceedings, interest, fines and charges, penalties and expenses (including, but not limited to, attorneys'and expert witness fees and costs incurred in connection with defending against any ofthe foregoing or in enforcing this indemnity) of any kind whatsoever paid, lncurred or suffered by, or asserted igainst, the city or its officers, employees, agents or the Franchisee arising from or attributable to any repair, remediation, cleanup or detoxification, or preparation and implementation of any removal, remedial, response, or closure or other plan (regardless of whether undertaken due to governmental action) concerning any hazardous substance or hazardous waste at any place where the Franchisee stores or dispose of solid or hazardous waste. The foregoing indemnity is intended to operate as an Agreement pursuant to the Comprehensive Environireniil Response, Compensation and Liability Act, 42 United States Code Section 9607, and California Heain andsafety code section 253621, and any successor provisions, to insure, protect, hold harmless, and indemnify the City from liabitity. Sectionl0. INSURANCEREeUTREMENTS. 10.1 Franchisee shall, at its sole cost and expense, procure and maintain in full force and effect, throughout the term of this Agreement, inclusive of any renewal term granted by_city, insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the services hereunder by the- Franchisee, its agents, representatives, employees or subcontractors. Franchisee shall procure and maintain insurance policies of the types and meeting the requirements set forth below, and shall provide to the city a certificate of lnsurance, or other such evidence reasonably acceptable to the City, verifying the existence of such policies: 10.2 Minimum Scope of Insurance Coveraqe. Franchisee shall procure and maintain policies of insurance with minimum scopes of coverage AT LEAST as bioad as the following: (a) ComprehensiveGeneralLiabilitylnsurance. (b) ComprehenslveVehicleLiabilitylnsurance. (c) workers' compensation rnsurance as required by the state of carifornia andEmployefs Liability lnsurance. 10-3 Minimum Limits. Vendor shall maintain insurance with minimum limits NOLESS THAN the following: (a) Generar Liabirity of rwo Mi ion Doflars (92,000,000) for each occurrence and in the aggregate, combined single llmit, against any bodily injury, death, personal injury, or property damage. ln Comprehensive Generai Liabiiity tnsuiance or other form in which a generar aggregate rimit is used, the geneiar rimit shafl appryseparatery to this Agreement or the generar rimit shal oe twrcE the required occurrence limit. 6 Automobile Liability of One Million Dollars ($1 ,000,000) per accident for bodily injury and property damage. Garage Keepers Legal Liability coverage with minimum limits of Two Hundred Fifty Thousand Dollars ($250,000) per occurrence. Employer's Liability of One Million Dollars ($1,000,000) per accident for bodity injury or disease. Worke/s Compensation and Employer's Liability lnsurance in an amount required by law. Reduce or eliminate such deductibles or self-insured retentions with respect to the City, its elected and appointed officials, oflicers, employees, agents, representatives, attorneys, and volunteers; OR Procure a bond, guaranteeing payrnent of losses and related investigations, claim administration and defense expenses. Under this option, Franchisee shall file such bond within five (5) days after the adoption of the ordinance approving this Agreement. Franchisee shall maintain the bond in full force and effect throughout the term of the Franchise, at Franchisee's sole expense. The bond shall be issued by an admitted surety insurer and comply with the requirements of the Bond and Undertaking Law, codified in Code of Civil procedure Sections 995.010 et seq. This franchise shall be considered a "license or permit,,within the meaning of the Bond and Undertaking Law, solely for purposes of application of such law to the bonding requirements of this section. 10.5 Reouired Endorsements. All of the policies required by this Agreement shall contain, or be endorsed to contain, the following provisions: (b) (c) (d) (e) 1O.4 Deductibles. Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, Franchisee shall either: (a) (b) (a)City, its elected and appointed officials, officers, employees, agents, representatives, attorneys and volunteers shall be named as additional insured parties, and the policies shall specifically state that the coverage contained in the policies affords insurance pursuant to the terms and conditions as set forth in this Agreement. The insurance coverage provided by the Franchisee shall be primary to any coverage available to the City. Any insurance or self-insurance maintained by City, its officers, officials, employees or volunteers shall be in excess of Franchisee's own insurance and shall not contribute with it. The insurance policies shall contain no special limitations on the scope of protection afforded to the City, its elected and appointed officials, officers, employees, agents, representatives, attorneys or volunteers. Further, the policies shall expressly waive the right of subrogation against City, its elected and appointed officials, officers, employees, agents, representatives, attorneys or volunteers. (b) (c) 7 (d) Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to the City, its elected and appointed officials, officers, employees, agents, representatives, attorneys or volunteers. (e) The insurance coverage shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer,s liability. (0 Each insurance policy required by this section shall be endorsed to state that coverage SHALL NOT be suspended, voided, and/or canceled by either party, and that there shall be no reduction in the amount of coverage or in the limits applicable thereto EXCEPT after thirty (30) days prior written notice has been given to the City, said written notice to be delivered by U.S. Certified Mail, Return Receipt Requested addressed to the City Attomey and City Finance Director. (S) ln its sole discretion, the City may waive all or some portion of the above referenced insurance if such waiver is in writing and executed by City's Finance Director. 10.6 Required lnsurance Ratino. Any insurance policy required by this Agreement shall be placed with an insurer admitted in the State of California with a current A.M. Best's rating of NO LESS THAN B+:Vll in the latest edition of Best's lnsurance Guide. 10.7 Orioinal Certificates Reouired. At all times during the term of this Agreement, Franchisee shall maintain on file with the city's Finance Director a certificate or certificates of insurance. Said certmcate or certificates of insurance shall show that the aforesald policies are in efiect in the required amounts and shall contain each ofthe endorsements as set forth in Section 10.3. Franchisee shall, prior to commencement of work under this Agreement, file with the city Finance Director the original certificates effecting coverage required by this section of this Agreement. The endorsements are to be signed by the person authorized by that insurer to bind coverage on its behalf. The endorsements are to be received and approved by City before Franchisee commences operation under the terms of this Agreement 10.8 Failure to Maintain Required lnsurance. Franchisee agrees that if it fails to keep the aforesaid insurance policies in full force and effect the city may, at its sole option, either (l) immediately terminate this Agreement or, (ii) if insurance is available at a reasonable cost, the City may take out the necessary insurance and pay, at Franchisee's cost and expense, the premium thereon. Section 11. TERMINATTON AND SUSPENStON. The City may terminate this Agreement, without cause, by giving the Franchisee thirty (30) days' written notice of such termination and the effective date ihereof. The City may terminate this Agreement, with cause, by giving the Franchisee (10) days' written notice of such termination and the effective date thereof. Cancellation for cause shall be at the discretion of the city and shall be, but is not limited to, failure to supply the materials, equipment or service specified within the time allowed or within the terms, conditions or provisions of this Agreement. The Franchisee may not cancel this Agreement without prior written consent from the-Vernon Chief of Police. 8 Section'12. TEMPORARYSUSPENSTON. ln addition to termination or suspension as set forth in Section 1 1, above, the Chief of Police may temporarily suspend any Franchisee without a hearing, whenever the continued operation by the Franchisee would constitute a danger to public health, safety, welfare or public morals, including, without limitation, where there is a failure to maintain the minimum levels and standards of liability insurance or claims reserve or failure to keep in full force and effect any appllcable licenses or permits required by federal, state, local law, or regulation. The notice of temporary suspension may be personally delivered to the party named and to the address given on the application pursuant to which such Franchise was issued and to the notice address stated herein, if different, or, mailed by registered or certified mail to the party named at the address given on the application pursuant to which such Franchise was issued and to the notice address stated herein, if different. Notwithstanding other notice provisions of this Agreement, the temporary suspension is effective upon the earlier of either receipt or the expiration of three (3) days from the date of mailing. The notice of temporary suspension shall include a notice of the date and time for termination hearlng and all other information required by the vernon Municipal code. The temporary suspension shall remain effective until the decision on suspension or termination is made unless the suspension is lifted by written notice of the Chief of Police. Section 13. ACCEPTANCE. WA|VER. Franchisee agrees to be bound by and comply with all the requirements of chapter 48 and this Agreement. By entering into this Agreement, Franchisee waives, to the maximum extent permitted by law, Franchisee's right to challenge the terms of this Agreement and of chapter 48 under federal, state or local law, or under administrative regulation, as such laws and regulations exist as of the date of signing of this Agreement. Section 14. GENEML TERMS AND CONDtTtONS. 14.1 INDEPENDENT STATUS. lt is understood that in the performance under this Agreement, Franchisee shall be, and is, an independent operator, and is not an agent, contractor, or employee of city and shall furnish services in its own manner and method, except as required by this Agreement. Further, Franchisee has and shall retain the right to exercise full control over the employment, direction, compensation and discharge of all perions employed byFranchisee in its business operations. Franchisee shall be solely responsible for, and sha'lt indemnify, defend and save city harmless from all matters relating to the payment of its employees, including compliance with social security, withholding and all other wages, salaries, benefits, taxes, exactions, and regulations of any nature whatsoever. Franchisee acknowledges that F-ranchisee and any subcontractors, agents or employees are not enti ed to any ofthe 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' Compensalion insurance benefits. 14.2 FRANCHISEE NOT AGENT. Franchisee 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. 14.3 WAIVER. The City,s waiver of any term, condition, breach or default of this Agreement shall not be considered to be a waiver oi any other term, condition, default or breach, nor of a subsequent breach of the one waived. o . 14.4 NO ASSIGNMENT. The Franchisee shall not assign ortransfer any interest in this Agreement without the express prior written consent and approval of city Council. Any unauthorized assignment or transfer of Franchisee's rights or obligations under this Agreement shall be null and void and shall constitute a material breach by Franchisee of this Agreement. - 14.5 COMPLTANCE WITH LAWS. Franchisee sha compty with a Federal, State, County and City laws, ordinances, resolutions, rules and regulations, which are, as amended from time to time, incorporated herein and applicable to the performance hereof. - 14.6 ATTORNEY'S FEES. tf any action at taw or in equity is brought to enforce or interpret the terms of this Agreement, the prevailing party shall be entiflei to reasonable attorney's fees, costs and necessary disbursements in addition to any other relief to which such party may be entitled. 14.7 INTERPRETATION. 14.7.1 Applicable Law. This Agreement, and the rights and duties of theparties hereunder (both procedural and substantive), shall be governed and construed according to the laws of the State of California, without regard 1o the conflict of laws provisions therein. 14.7.2 Entire Aqreement. This Agreement, including any Exhibits attached hereto and any documents explicifly referenced herein, constitute! the en re agreement and understanding between the parties regarding its subject matter and supersedes all prior or contemporaneous negotiations, representations, understindings, correspondence, documentation and agreements (written or oral). . 1a Z 3 \lrittcq Ameldmed. This Agreement may only be changed by written amendment signed by Franchisee and the city Administrator or othei authorize-d representative of the city, subject to any requisite authorization by the city council. Any oral representations or modifications concerning this Agreement shall be of noforce or effeii. - 14.7.4 Severabilitv. lf any provision in this Agreement is held by any court of competent jurisdiction to be Invalid, illegal, void, or unenforceable, such portion sna bedeemed severed from this Agreement, and the remaining provisions shall nevertheless continue in full force lnd effect as fully as though such invalid, illegal, or unenforceable portion had never been part of this Agreement. 14.7.5 Choice of Forum. The parties hereby agree that this Agreement is entered into and is to be performed in the city of vernon and that;ll claims or contro-versies arising out of or related to performance under this Agreement shall be submitted to and resolved in a forum within the county of Los Angeles at a place to be determined by the rules of the forum. 14.7.6 order of precedence. rn case of conflict between the terms of thisAgreement and the terms contained in any document attached as an Exhibit or otherwiseincorporated by reference, the order of precedence is as follows: charter of the city of Vlrnon, the Vernon Municipal code, the ordinance granting this Franchise, resolutions of the city ofvernon, this Agreement, the city's Request for proposals for ofiicial porice Towing se;i;, 10 - and Franchisee's Response to the Clty's Request for Proposals for Official Police Towing Services. 14.7.7 Duolicate Orioinals. There shall be two (2) fully signed copies of this Agreement, each of which shall be deemed an orlginal. 14.8 AUTHORITY OF FRANCHISEE. The Franchisee hereby represents and warrants to the City that the Franchisee 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. 14.9 EMINENT DOMAIN. The granting of the Franchise shall not in any way impair or affect the right of the City to acquire the property of the Franchisee by purchase or condemnation, and nothing contained in this Franchise shall be construed to contract away, modify or abridge either for a term or in perpetuity the City's right of eminent domain. 14.10 VALUE OF FMNCHISE. By acceptance of the Franchise, the Franchisee, for itself, its successors and assigns, agrees that in any proceeding of any character before any court, commission, administrative body, board of arbitration or other public authority, no greater value shall be placed upon the franchise in excess of the cost to the Franchisee ofthe necessary publication and any other sum paid by Franchisee to the City therefor at the time of acquisition. Sectionl5. ADDITIONALASSURANCES. 15.1 EQUAL EMPLOYMENT OPPORTUNIry PRACTICES. Franchisee certifies and represents that, during the performance of this Agreement, Franchisee and any other parties with whom it may subcontract 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, religion, color, national origin, ancestry, disability, sex, age, medical condition, marital status. Franchisee further certifies that it will not maintain any segregated facilities. Franchisee further agrees to comply with The Equal Employment Opportunity Practices provisions as set forth in Exhibit ,,C',. 15.2 BUSINESS LICENSES. Franchisee sha obtain, and pay any and aI costs associated therewith, any Vernon Business License, which may be required by the Vernon Municipal Code and all permits, and licenses applicable to Franchisee,s operations under this Franchise, which are required of Franchisee by any governmental agency. 15-3 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 ofthe Franchisee'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 Franchlsee is properly enti ed under the Agreement or for other purposes relating to the Agreement. The Franchisee shall maintain and preserve all such records for a period of at least 3 years after termination of the Agreement. The Franchisee shall maintain all such records in the city of vernon. lf not, the Franchisee shall, upon request, promp y deliver the -11 records to the City of Vemon or reimburse the City for all reasonable and extra costs incurred in conducting the audit at a location other than the City of Vemon, including, but not limited to, such additional (out ofthe City) expenses for personal, salaries, private auditors, travel, lodging, meals and overhead. 15.4 CONFLICT. Franchisee hereby represents, warrants and certmes that no member, ofiicer or employee of the Franchisee is a director, officer or employee of the City of Vemon, or a member of any of its boards, commissions or committees, except to the extent permitted by law. Section 16. LIVING WAGES. Franchisee, and any subcontractor(s), shall comply with the City's Living Wage Ordinance. The current Living Wage Standards are set forth in Exhibit "D". Upon the City's request, certified payroll records shall promptly be provided to the City. Section 17. NOTICES. Except as otherwise provided in this Agreement, all notices required by this Agreement or by Chapter 48 ofthe Vernon Municipal Code shall be given by personal service or by deposit in the United States mail, postage pre-paid and retum receipt requested, addressed to the parties as follows: To City: Vernon Police Department Attention: Police Chief 4305 Santa Fe Avenue Vemon, CA 90058 Copies to: City of Vernon Attention: Finance Director 4305 Santa Fe Avenue Vernon, CA 90058 Franchisee: Mr. C's Towing of South Gate, lnc. Attention: Jerry Brown, General Manager 4421 Mason Street South Gate, CA 90280 Notice shall be deemed effective on the date personally served or, if mailed, three days after the date deposited in the mail. [Signatures Begin on Next Page]. -12- lN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by their duly authorized representatives as of the date set forth below. City of Vernon, a California charter City Mr. C's Towing of South Gate, lnc., a andCaliforniamunicipalcorporation Californiacorporation DATED: W. Michael Mccormick, Mayor Name: Tifle: ATTEST: Maria E. Ayala, City Clerk Tifle: APPROVED AS TO FORM: Brian Byun, Deputy City Attorney By: Name: -13- DATED: By:By: EXHIBIT A EXHIBIT A REQUEST FOR PROPOSALS -14- City of Vernon Request for Proposals (RFP) Franchise Tow Fee Program City of Vernon Police Department 4305 Santa Fe Avenue, Vernon, CA 90058 Phone: (323) 587-517f City ofVemon Franchise Tow Fee Pmgram Request for Proposals ,I. INTRODUCTION AND PROJECT The City of Vemon seeks proposals ftom qualified bidders to enter into a franchise agr€ement to perform rotational polic€ towirE and storage services. Services to be performed by the selected contrac'tor include vehicle towing and impound services as direcled by the Vernon Polace Department. Based on the quality of lhe proposals received, De City may mnsider awarding a single tow franchise contract, or multiple tow ftancfiise mntracts using a call-for-service rotation. The City does not expect to aurare more than tlvo (2) frandrise agreements under the rotational sysEm, although City Council reserves the right to aurard contracts at its sole discretion, based on the proposals submitted, The City will select no more than lwo (2) tow service companies, based on demonshated competence and a cost effec{ive appoach to design, conduct, and assist in the removal of vehicles which are apparently abandoned, or driven by unlicensed drivers, or drivers driving on suspended licenses, or involrred in traffic mllisions, or vehicles creating a traffic hazard due to mechanical failures. To be eligible for consideration, the tow seMce comp€nys place of business and vehicle storage facility must be located within a seven (7) mile radius of the Vemon Gity Hall, located at 4305 Santa Fe Avenue, Vemon CA 9005E. 2. BACKGROUND Tho City of Vemon r,vas founded in 1905, is approximately 5.2 square miles in size and is located approximately 5 miles southeast of downtorn Los Angeles Califomia. Over its long history Vemon has been developed as an industrial community. At the tum of the 20h century the lands thal make up Vemon were comprised largely of farmlands. The presence of thre€ mapr rElil lines in the area led influential business and property owners lo encourage the railroad companbs to run spur lines onto the farmlands. These rail ertensions enabled the crealion of an "exclusively industrial' city. By lhe 1920's Vemon was attracting large sbckyards and meatpacking facilities. ln the 1930's Vemon became the location of choice for many heaw industrial plants. As economic conditions changed over the decedes, these large scale industrial operations have relocated out of Southem Califomia and Vemon has attracted smaller, lighter industsial facilities. The City's business fiiendly onvironment, low cost utilities and key location for truoking and rail lransport continue to position Vemon as an ideal location fur industrial uses. City Govomment: The City Council consists of five members, elected at-large, who serve R\re-year staggered terms. The City Council annually appoints a Mayor and a Mayor Pro Tem fiom its own membership to serve one-)€ar terms. 2 City ofVernon Franchise Tow Fee Prograrn Request for Proposals Labor Force: Vemon has approximately 250 employees, and its departments include a Fire Oepartnent, Polica Department, Financ€ Department, Public Worhs, Water and O€velopment SeMces DepartflEnt, Gas and Electric Depertment and H€alth ard Environmental Control Department. Present bargsining units recognized include the Vemon Police Officers Benefit Association, Vemon Police Management Associetion, Vemon Firemen's Association, the Vemon Fire Manegemenl Association, lntemational Brotherhood of ElectricalWorkers Local 47, and Teamsters Local 911. 3.@ESSED The selected tow service company shall be able lo provide swift, professional service in the romoval of any vehicle, as directed by the Vemon Police Department, from any City street. 4. SGOPE OF SERVICES REOUIREO The City of Vemon is seeking the servlces of a highly qualified tow service company to assist in: Under the terms specified herein as well as in Chapter 48 of the Vernon Municipal Code, Franchisee shall fumish impound, to,ving, and storage servicos to the Vemon Police Department and the City as direded by the Vemon Polioe DepErtmenL To be eligible for a franchise, applicants must meel the City's minimum requirements as specified hsr6in. Franchisee will be required to provide the necessary hained personnel, low trucks and storage facilities to recover, if necessary, and remove vehicles and Uactor/tsailers in\olved in collisbns- Franchisee(s) must be able to tow and store vehicles impounded by the police, many times in excess of 30 days; and mrrst be able to clean up and dispose of debris at the scene of an accident at which any vehicle to be ld,ved hereunder was involved. The average response iirne lor any hirty day period pursuant lo rBquests for to,, seNice by the Police Oepartment, must not exceed t$renty (20) minutes. The maximum response time for any sirEle requesl for tow seMce by the Police Oepartment shall not exceed thirty (30) minutes. ln the event the Frarrchisee cannot respond within 20 minutes, the Franchisee shall immediately notify the Police Oepartment dispatcher and provide an estimated time of anival. Franchisee must provide a dispatcher available onsite at the lou/ facility place of business Et all times for the immediate dispatching of towing equipment. Franchisee's plaoe of business must be open fro.n 0700 to 1800 hours Monday through Friday. Alt€mate hou6, as directed by the City, must also be available in order to accommodate speciel City events. Feilure or refusal to promptly relay the Police Dbpatche/s requests for towirE s€n ices shell constitute failure to compy with the requirements, terins and conditions of the agreement and may resull in termination of the agreement. All low trucks shall be equipped as proMded in the California Vehicle Code. 3 I I I I I City of Vemon Franchise Tow Fee Progam Request for Proposals Franchisee's trucks shall be painted, free of major dents, and kapt clean and in good workir€ order. Official police tow services shall, at all times, have at least three fully equipped and operatbnal tow trucks in service. Allof the lo,y trucks in s€n ica must have a minimum capacity of one (1) ton. At least one of the tow trucks in service must be a flatbed tow truck. At least one of the three totr truc*s in service musl ha\re a five ton (5) lifting capacity. Every offidal police tow seMce shall be equipped for and have personnel profidenl in unlocking locked vehicles when requested to do so by Police Depadment employees. Upon selection the Franchisee shall file witt the Vernon Police Depadment, the name, address, date of birth, driveds license number, and all other information required of any tow unit driver employed by the permit ltolder subsequent to the date of the tow operator permit apptrcation, which information shall be filed not later han ten (10) business days folloring the effective date of hiring. The Franchisee will be required to notify the Vemon Police D6partment of the name of any tow truck driver no longer employed by such permil holder. This mtfication shall be given to the Vemon Police Departrnent no later than ten (10) business days following the last date of the drive/s employment by the permit holder. The Franchise€ will b€ rBquirBd to notify the Vsrnon Police D€partrBnt of ths idsntity of any tow truck driver whose license is suspended. The operator shall not be auhorized to operate in Vermn unless the operator has provided proof from tfie Department of Motor Vehicles of the ability to operate a vehicle during work hours. The Franchisee will be required to enroll and participating in a program with Califomia Depaftnent of Motor Vehicles (DMV Pull Program) that notfres the Franchisee when their drivers ha\re any changa to their drMng status or Gcord. This DMV program will alert the Franchisee to any pot€ntial problem driErs. Frandrisee will be required to comply with the Califomia Vehicle Code and olher applicable laws with r€gards to lien sales, including supplying a lisl of vehicles each rndth that the Franchis€€ intends to lien sale prior to sellirE same for approval by the depaffnent. Franchisee is responsible for maintaining all documents relating to lien sale+ 5. QUAUFICATIONS & CRITERIA A Qualifrcatiorc: The City of Vemon will select no more lhan h o (2) tow service companies for all of th€ outlined Scope of Service on the basis of qualifications, experience, and cost. The following are the mirimum qualifications to be used to evaluat€ r€sponses lo this R€quest for Proposal: 1. The applicants can satisfy the insurance, business license, and tow op€rator permits requirements sel forth in Vemon Municipal Code Chapter 48.2. The applicants are qualified on the basis of prior experience in the towing 4 City of Vemon Franchise Tow Fee Program Request for Proposals op€ration business and financial responsibility. 3. All tow vehicles and equipment must comply with all slate and appliceble federal requir€ments.4. The applicants c€n raasonably conduct an official police to^,ing service which complies with all of the rcquirements of Vernon Municipal Code Chapter 48. 5 The applicants will accept all tow requested by the City, including tows of abandoned or dismantled vehicles and/or tows requiring special equipment. B. Sol6c{on Crlteda: The City will conduct a compr€fiensive, fair, and impartial evaluation of proposals recei\red in response to this RFP. All proposals receivgd will be reviewed and evalualed by a committee of qualilled personnel. The name, information, or €xperience ol the indiv lual members will not be mad6 availablB to any prcposer. The Evaluation Committee will first review and scr€en all plDpGals submitted, except for the cost proposds, according to the minimum qualifications set brlh above. The follorving criteda will be used in reviewing ard comparing the proposals and in detemining the highest scoring bid: 1. 40Vo Qualifications, background and prior experienco of the tow s€rvice company in the Service Area(s) being proposed, experience of key staff assigned to oversee services provided to Vemon, e\raluation of size and smpe of similar wort performed and suc@ss on lhat work. 2. 30% Cost and fees to the City for handling matt€rs. Cost is not the sole determining factor but will be taken into consideration. Propos€r must ofrer services at a rate comparabl€ to the rate proposer offers to other govommental entities for similar work. Offering a higher rate to the Cig than the comparable rate is grounds for disqualification of the Proposer. lf rates differ for different types or leveb of seMce, or for different SeMce Areas, the Proposer should so state. 3. 'lo% Responsiveness to the RFP, and quality and responsirreness of the proposal. 4. 20% References including past performance of proposer. 6.W Respondents are asked to submit seven (7) hard copies and one (1) electronic copy of their proposals in sufficienl delail to allow for a thorough evaluatjon and comparative anal)rsis. The proposal shoud include, at a minimum, the following information in sectionalized format addressirE all phases of the work in the RFP. A. Format: Limit )rour proposal to 20 typed 8.5" X 11" pages, or fewer, on white bond paper of at loast 20?ound weQht single sided (ercluding cover bnor and attachments. You may a[ach a company brrchure if pu wish, but it must be as a separate attachment and independent from the reguired elements noted ebore. 1. Use a conwnlional typeface with a minimum font size of 12 points. Use a 'l' margin on all boarders. -5- B. City ofVernon Franchise Tow Fee Program Request for Proposals 2. Organize your submittal in the order described above. 3. Provide one (1) unbound original of ycur companys response and one elactronic vorsion (via email) to Ceptain Michael Gillman, mgillman@covpd,org 4. Prominently label he package: 'Franchlse Tow Fee Program" and include the name of the primary contact for the respondenl. Deliver the response to: City of Vemon Attentbn: Captain Michael Gillman 4305 Santa Fe Avenue Vemon, CA 90058 5. Responses are due on or before 5:00 rasponse will not be accepted. p.m. on April 16, 2015. l-ate 6. lf you have any question about thb RFP, pleess crontact Captain Michael Glllman at (323) 587-5171 ext. 1 15. Cover Lett€r: All proposals shall include a cover letter $/hich states that the proposal shall remain valid for a period of not less than ninety (9O) days from the date of submittal. lf the propGal contemplales the use of sub-contradors, the sub- contraclors shall be identified in the cover letter. lf the pro@sel b submitted by a business entity, the @ver letter shall be signed by an ofiicer authorized to contraciually bind the business entity. With respect to the business entity, the covEr lstter shall also lnclude: the E€ntilication ofthe business entity, including the name, address and telephone number of the buslnoss entity; and the name, title, address ard telephone number of a contact person during the proposal evaluation perid. lntroductlon: Present an inhoduction of the pmposal and your understanding of the assignment ard significant steps, methG and procedur€s b be emplo)Ed by the proposer to ensure quality delirerables tfnt can be delivered within the rcquired time frames and your iCentified budget. General Scope of Work: Briefly summarize the se,ope of wo* as the proposer perceives or envisions it for each Senrice Area poposed. Work Plan: Present concepte for conducting the lrcrk plan and inten€lationship of all projects. Define ihe scope of each task including the depth and scope of analysis or research proposed. Fees and costs: Afthough an important aspect of consideration, the financial cDst estimate will not be the sole justitication for consideratiofl. Negotiations may or may not be conducted with the proposen therefoG. the proposal submitted should contain the propose/s most favorable t6rms and condluons, sincs selection and award may be made without discussion with any tow s€rvice company. All prices E. F. 6 D. t. City ofVernon Franchise Tow Fee Program Request for ?roposals should reflect "not to exceed' amounts per item. Proposer must otfer services at a rate comparable to the rale proposer offers to other governmental entities for similar uork. Otfering a higher rate to the City than the comparable rate b grounds for disqualmcation of the Proposer. Abili9 of the Proposer to Perform: Provide a detail€d description of the proposer and his/heriits qualifications, including names, titles, detailed professional resumes and past exp€rience in similar u/ork efforts/products of key peBonnel wiro will be wo*ing on the assignment. Proride a list of specific r€lated work proFcts that have been complsted by the proposer which are diGcty related to the assignmsnt described in this RFP. Note the specific individuals who completed such projec(s). ldentify role and responsbility of each member of the project team. lnclude the amount of tinE key persmnel will be involved in the respective portions of he assignment. Respondents are enmuraged lo supply rele\rant examdes of their professional product. Pro/ide a list of references. The selected tow service companies shall not subcontract any work under the RFP nor assign any work without the prior written coment of tho City. Affidavft of Non-Collusion. Proposer must submit a completed and signed, "Affidavit of Non-Collusion.' (Copy attacied as Exhibit A). AOOENDA" CHANGES. AND AilENOTENTS TO THIS SOUC]TATION At any time priot to the due date for responses, the City may make changes, amendments, and addenda to this solicitstion, includlE changing the date dJe to allo^, respond€nts time to address such changes. Addenda, changes, and amendments, if made, will b€ posted on he CiSs website (u ^r.citlrofuemon.org), wtrich is deemed adequate notics. A proposer may make a request to the City's project coordinator to be placed on a list of pefsons to receive notice ol any sucfi addenda, changes, or amendments. The prefened manner of communications Is via e-mall due to its timeliness. 8. CONDITIOT{S FOR RESPONSES TO RFP The following conditions appy to this RFP process: Nothing contained in this RFP shall create any contractual relationship between the respondent and the City. This RFP does not obligate the City to establish a list of service providers qualified as prime conhactors, or award a contrad b any respondent. The City r€serves the right to amend or cancol this RFP without prior notice, at any tim€, at ib sole discrBtion. The City shall not be liable for any expens€s lncun€d by any individual or organization in connection with this RFP. No conrrersations or agreements with any officer. agent, or H. 7. A B. c. D. .7 - City of Vemon Franchise Tow Fee Progam Request for proposals employea of the City shall affecl or modify any terms of this RFp. Oral communications or any written/e-mail materials provided by any person other than designated contact staff of City shall not be considered binding. E. The City reserves the right, in its sole discretbn, to accept or reject any or all Proposals without prior notice and to tvaive any minor inegularities or defucts in a proposal. The City reserves ths right to seek darification on a Proposal with any source. F. The dates, times, and sequence of events related to this RFp shall ultimately be determlned by the City. The schedute shown abor/e is subiect to change, al th€ sole discretion of the Cig, although the City will ettempt to follo it and, if it must be altereJ, will attempt to provide reasonable notice of the changes- G. Respondents shall not issue any news release pertaining to this RFP, or the City without prior unitten appro\ral of the City, H. All submitted proposab and information included herein or attadred thereto shall become public record upon delivery to ttre City AdministratoCs Ofiice. RIGHT BY THE CITY TO WITHDRAW THIS REOUEST The City may, at its sole discrelion and for any reason whatsoever, withdraw his solicitation at arry time. 10. LIVING WAGE ORDIIIAAICE The selec-ted tow service companies shall pay qualifying employees a wage of nol less than $10.30 per hour with heaith benefits, or $1 1.55 per hour without health benefits_ The tow service mmpenies shall also provide qualifying employees at least tu,elve days off per year for sick leave, vacation or personnel necessity, and an additional ten dayi a year of uncompensated time for sick leave. There shall be a prohibition on emplolEi retaliatbn against an employee's complaining to the City with reg€rd to the empbyer,s compliance with the living wage ordinance. The torrv services companies, and any sub- contracto(s), shall comply wilh the City's Living Wage Ordinance. The cunent Liiing Wage Standards are set forth in Exhibit "D' of the slandard form franchise to^,ing servbes contract, attached hereto as Exhibit B. Upon the City's request, certifiei payroll records shall promptly be provided to the City. -8- City of Vemon Franchise Tow Fee Program Request for Proposals 11. STANDARD TERiIS AND CONDITIONS Prior to the award of any work her€urE€r, Cily and proposor shall entsr into the written contrsct for servic€s attached hereto as Exhibit B. Proposers responding to this RFP are strongly advised to review all the terms and conditions of the Contract The term of the Contract shall not exceed three (3) years, _o- City ofVemon Franchise Tow Fee Program Request for proposals EXHIBIT A AFFIDAVIT OF NON.COLLUSION - 10 - AFFIDAVIT OF NON-COLLUSION BY CONTRACTOR STATE OF CALIFORNI,A COTJNTY OFLOS ANGEL.ES ) )ss ) first duly swom deposes and says that hdshc is of lltBer 'SoL OwE/, 'Pr.m./. .P,Eihnr 'SEldsry., no |Gr grlP.r titL) ( IR.n lrlB of Hd.0 who submits hqrwith @ fte City of V€mon 8 bid/proposal; Thrt all silatrrncnti offact in such bid/propoml arc ruc; Thrt such bid/propoeal was Dot made in the interut of or on bdulf of any undisclosed pcrmn, panncrship, comfny, association, organization or corproration; Thrt srch bid/pmpoeal is genuinc and not collusive or sham; That said bidder lus nog direcdy or indircctly by agreerncnt, communicalion or confcrencc with an5rone attcnrptEd to induce aclion pejudiciEl to tll€ hEr€sr of rhe city of veraon, or ofany other bidder a anlsre else inrcrested in tre proposed conuact; and finher That pior to the public qening and reading of bitsftropooals, said bidd€r b. Did nor dirEctly or indirEctly, irduce or solicit anlone els€ to submit a false or sham bid/proposal; Did not directly or indirectly, collude, conspire, condw or agr€e with anyone else thar soid bidder or anyone elx would submit r false or sham birUproposai or that anlone should retain from bidding or withdraw hiMrer bid/proposal; c. Did not, in any manner, directly or indirccily seek by ag€€ment, communication or mnfercrre with anytne to raise or fix the bid/proposal price of said biddcr or of anlone clse, or ro raise or fix any overhe-ad, pro{it or cost element of hidtrer bid/propcal priee, or of that of antonc elsc; d, Did not, directly or indirecdy, submit hiVher bi&lroposal pdce or any br€akdown thcreof, or rhe contenrs thereof, or diwlge information or data rclatiw ficrcto, to any corporation, bid depository, or to any mcmbcr or ag€n! Ii,fi i*lT,i"f ly'iiItrl frff Y"ffil I cvtiS under penalry ofperjury that the above information is correct By:Title: Date: Mllrh 20ll City of Vemon Franchise Tow Fee Program Request for Proposals EXHIBIT B STANDARD FORM COMTRACT -'tl- CITY OF VERNON FRANCHISEE TOWING SERVICES AGREEMENT NO. COVER PAGE Franchisee:Iinsert name of franchiseel Responsible Principal of Franchisee: linsert name, titlel Notice lnformation - Franchisee: Notlce lnformalion - Cit)4 Commencement Date: Termination Date: Consideration: Rscords Retention P€riod [insert name of franchiseel [insert street address] [insert city, state, zip mde] Attention: [irsert name, titlel Phone: [inserl phone number] Facsimile: [insert fax number] City of Vemon 4i105 Santa Fe Avenue Vemon, CA 9005E Attention: [insert d€partment headl [insert departm6t head title] Telephone: (323) 583-8811 ext. [insert] Faeimile: [inserl fax number] [insert commencement date] [insert termination date] Payment is made by Franchisee to City pursuant to Section 3 of this Agreement. Payment is made to Franchisee by City pursuant lo Section 5 of this Agreement. [insert number of ]rears contractor must retain records] March 2015 CITYOF VERNON FR/{NCI{ISEE TOWING SERVICES AGREEMENT NO. This Agreement b made and entared into by and between the City of Vermn ("Cityr), a Califomia chartGr City and Califomia municipal corporalion, and ("Franchisee'), a Folice TouirB Company with its principal place of business at City. The Parties agree as follovrs: RECITALS WHEREAS, FrenchiB€e shall provide polics towirg services to the City of Vernon as set forth in the Request for Proposal dated . Exhibit A, and Franc_lbee's fiopo€al to the Citv ('Prooosal') dated . Exhibit B, bolh ot which are atach€d to end incorporeted lnto lhis Aoreemenl bv reference. WHEREAS, Blrsuanl to Chapter 48 of the Vemon Municipal Code, Franchisee has applied for a Police Torrlng Franchlse ('F.anchise'): and WHEREAS, the City Council has hold a public hearing {orthe purpose of hearing peGons in favor of or in opposition to the granting of such Franchise; and WHEREAS, the City Council has determined that Franchise€ has demonstrated cornpliance with Chapter48 of the Vemon Municipal Cod€ and has agreed to comply with all provisions of that Chapter; and - WHEREAS, it is rtquired that City and Franohisee enter into a Franchise Towing Sewices Agreement ('Agreennnf ) for Police Toring seryices in the CiV of Vemon; ani WHEREAS, additional conditions have been imposed upon this grant of Franchise. NOW, THEREFORE, the Parties do hreby agree as follows: Section 1. GMNT OF FRANCHISE. City grants to Franchisee a Police Towing Franchise authorizing Franchisee to engage in the business of Polica To^/ing as set forih in chapter 48 of the vemon Municipel code in the city of vemon and to use the pubtic streets and rights of way for sucfi purpose. Thi6 grant is pursuant to lhe City's Request for Proposal and to Franchlse€'s proposalfor the Franchase. Franchisae is subiect to the terms and condiflons specifi€d in sec on 8.9 of he chartsr of theCIV of Vornon, tha provl6ions of Ghapter 48 of the Vemon Municipal Code, the terms and conditbns spoci,ied in all rolated resolutions, the terms and conditions of this Agreemenl, the repr€sentations and assurances in Franchisee's applicatbn for the Frandise. - Section 2. TERM OF FRANCHTSE The term of this Franchise granted lo Franchisee shall be for three (3) years, from _ - to indusive. (collectively, the "Parties') to provide for towing services lo the March 2Ol5 Section 3. FRANCHISE FEES. 3.1 During the term of the Franchise, Franchisee shall pay franchise f6es to City, which fees shall be assessed from lhe date on which the ordinance granting this Franchise became effective and in accordance with Section 48.8 of the Vemon Municipal Code and any Resolution adopted by the City Council and in such other amounts as ar€ set forth in any subsequent resolutions that may be adopted by te City Council at any time during the term of the Agreement. 3.2 Franchise shall timely pay all required franchise fees to: Finance Department - Diredor ol Finance City of Varnon 4305 Sanh Fe Avenue Vemon, CA 90056 Eadr payment shall be accompanied by a written statement, verified by the Franchise€ or a duly authorized representative of the Franchise, showing in such form and detail as the Direclor of th€ Deparlment of Financ€ may prescribe, the calculation of the franchise fee payable by the Franchisee and such other information as the Darector of the Oepartment of Finance may require as material to a determination of lire amount due. 3.3 The first payrnent of the franchise fee will be due on and paymenls shall be due monthly thoreafter on the 15D day of each month. 3.4 When Franchisee remits franchise fees the City, such franchise feos shall be deemed timely paid only if delivered or posfnarked on or bafore the due date. lf feas are not timely paid, Franchisee shall b€ subject to suspension or tsflrlination of the Franchise pursuant to Section 14 of this Agreement and/or to any other penalties which may be establbhed and assessed by the City, includirg, but without limitation, late fe6s assessed at the rate of five percent (57o). Section 4. TOWING SERVICES. 4.1 Franchisee shall pmvide Police Torring services, as set forlh in Exhibit A, which is the Cltys Request for Proposels for Offrcial Police Tow Services, and which Includes, but without limitat'ron, srictly adhering to the eligibility requirements, operating regulations, f€es schedulss, standards for td^, truck equipment, standard rules of operation, response time, inspection, information regarding new or terminated tow truck drivers, tow driver training, and as set lorth in Exhibit B which is Franchisee's responsa to the City's Request for Proposals. All seruic€s by Franchisee shall comply will all provisions of federal, state and local law and regulation, induding, but without limitation Chapter 48 of the Vemon Municipal C,ode. 4-2 FranchiEee understands and agrees that, although the City is granting it a franchise as a police towing s€rvic€, the City may requisition towing services from other service providers as set forth in Section 48.12 of the Vemon Municipal Codo, or if Franchisee is othenvise unavailable for any reason, in the reasonable discretion of the Vemon Chief of Polics and including, but without limitation, suspension or tsrmination of the Franchisee. March 2015 Section 5. RATES, CHARGES AND PAWENT. 5.1 The rates and charges for towing and storage in connection with this FranchisE shall be eotablished by the City Council. The prevailing rates presoibed by the Southem Dvision of he Califomia Highway Patrol, the Los Angeles Police Deparfneni, and the Los Angeles County Sheriff will be considered when establishing these rabs. The rate per impound shall be $_ and the storage charge shall be $- per day, until otherwise modified by the City Council. A sign showing thE approved rates and charges shall be conspicuously posted in the Franchisee's tow office and shall b€ posted in a conspicuous place in the interior of each tow truck operated by Franchisee. Franchisee shall provide vehicle ownerc the option of payment by Maste€ard and Visa. Franchisee must provide for after-hours releases ofvehicles, and may collect an after-hour release fee. As part ofthe award of franchise the City Council will be requested to establish an after-hours release fee not to exceed % of the impound fee in addltion to olher estrablished fees. Section 6. REPORTS. Franchisee shall file a monthly towing report with the Chief of Police along with payrnent of its monthly frandlise fees. The report shall be submitted to: Chief of Police Vemon Police Department 4305 Santa Fe Avenue Vemon, CA 90058 The report shall include the information required by Section 48.10(H) of the Vemon Municipal Code for Franchisee and its subcontractors, c€rtiried as true and conect under p€nalty of perjury by a responsible owner or official of the Franchisee: Section 7. FRANCHISEE'S RECORDS. 7.1 The Franchisee shall maintain a@urate and complete books and accounts of all revenues and income arising out of its operations under the Franchise and in a manner, which conforms with generally accepted accounting principles. Franchisee's books, accounts and records, arising out of or related to its operation under ttrc Franc-hise, shall at all times be open lo inspeciion, examination and audit by authorized officers, employees and agents of the City. Such records shall be kept at franchisee's place of business shown in this Agreement for receipt of notices. 7.2 Francfiisee shall require its subcontractors, if any, who perform Police Towing services in connection with the Franchise to keep and maintain books of account and other records showing all business transactions conducted by such subcontractors in conneclion with the Franchise- Franchisee agrees to use its best efforts to at oid duplication of reporting b€tween Francfiisee and its subcontractors. Section 8. TO / VEHICLE AND DRIVER. REPORTING. COMPLIANCE. ANO IDENTIFICATION. 8.1 FrarEhisee shall maintain on tile with lhe City, a complete and accurate listing of every \r'ehicle operated by Franchisee for police towing services. Franchisee shall certify, in a form acceptable to City, that every such vehicle conforms with regional and State March 2015 vehicle emission standards ('emission standards'), and shall provide documentation of complianc€ on written request ofthe cig. Franchisee understands and agrees that failure to conform with emission standards may result in suspension, termination or non-renewal of a Franchise. 8.2 Every vehicle operated by Franchisee and for police Tordng seMces in the City shall bear the folloling idenlification: Franchisee's lrade name, monogram or insignia, the Franchise vehicle number, bgether with Franchisee's telephone number painted upon both sides of the vehicle. All lettering mentioned in this paragraph shall be not less lhan 2-114" in height and not less than 5/6'stroke. The Franchisee agrees to remove the Franchise vehicle number and all other information within 30 calendar days after the Franchise is terminated or the vehide is so6, kansferred or Eken out of sewice. 8.3 Franchisee shall file wih he Vemon potice Department, the name, address, date of birth, driver's license number, and all identification required of any tow unit driver working for Franchisee, whether as an employee oras a contractor, which information shall be filed not later than ten (10) business days follo,ving the effective date of employrnent or engagemenl Franchisee shall also nolify the Vemon Police Department within ten ( 10) business days of the folloting occlmences: the license suspension of any tow unit driver, and the end of employment, or engagement, of any to , unit driver with Franchisee. Section 9. INDEMNIFICATION OF CITY. 9.1 Franchisee shall indemnify and hold the City harmless from and against any and all loss, damages, liability, claims, suits. costs and expenses, fines, charges or penaltie whatsoever, irrcluding rEasonable aftomays fees, regardless of the m6rit or outcome of any such claim or suil, arising ftom or in any manner related to the seMces provided or busirEss conducted under Chapter 48 of the Vemon Municipal Code or otherwlse pursuant to this Agreement. 9.2 Franchise€ shall indemniry ths City, defend with counsel approved by the City, prot€ct and hold harmless the City, its officers, employees, agents, assigns, and any sucoessor or successors to the citys interest from and against all clEims. actual damages (including but not limited to special and consequential damages), natural resources damage, punitive damages, injuries, costs, response, remediation and removal costs, losses, demands, debts, liens, liabilities, causes of action, suits, legal or administrative procoedings, interest, fines and charges, penalties and expenses (including, but not limited to. attomeys' and expert witness fees and mts incurred in connection with defending against any of the foregoing or in enforcing this indemnity) of any kind whatsoever paid, incuned or suffered by, or asserted against, the City or its officers, employees, agents or the Franchisee arising from or attributable to any repair, remedlation, cleanup or detoxification, or preparation and implementation of any removal, remedial, response, or closure or other plan (regardless of whether undertaken due to govemmental action) @ncerning any hazardous substance or hazardous waste at any place rfiere the Franchisee stores or dispose of solid or hazardous waste. The foregoing ind€mnity is intended to operate as an Agreement pursuant to the comprehensive Environmentral Responsa, compensation and Liability Act, 42 united states code s€ction g607, and california Healih and Safety Code Sedion 25364, and any succassor provisions, to insure, protect, hold harmless, and indomnify th€ City frcm liability. March 2015 Section 10. INSURANCEREQUIREMENTS. 10,1 Franchisee shall, at:ts sole cost and expense, proanre and maintain in full force and effect, throughout tho term of this Agreement, inclusive of any renenral term grant€d by City, insurcnce against claims for iniuries to persons or danages to property whici may arise from or in connection with the performance of the services hereunder by the Frandlisee, its agenb, representalives, emplolces or subcontractors. Franchisoe shall procure and mainbin insurance policbs of the tlpes and meeting the requirements set forth belo^,, and shall provide to the City a CertiJic€te of hsurance, or other sucfi evidence reasonably accepteble to the City, verlfying the €xistence of sudr policies: 10.2 Mlnimum Smoe oI lnsurance Coveraoe. Franchisee snall procure and maintain policies ot insurance with minimum scges of coverage AT LEAST as broad as the following: (a) ComprehensiveGeneralLiabilitylnsurance. (b) ComprehensiveVehicleLiabilitylnsurance. (c) Workers' Compensation Insurance as required by the State of Calitomia and Emplolcr's Lhbility lnsurance. 10.3 Minimum Limils. Vendor shall maintain insurancs with minimum limits NO LESS THAN the following: (a) General Liebility of Two Mlllion Dollars ($2,0@,000) for 6ach occurranoB and in the eggregate, combind single limit, against any bodily injury, de8th, personal injury, or property damage. ln Comprehensive General Liability lnsurance or other fom in which a general aggregate limit is used, the general limit shall apply separately to this Agreement or the general limit shall be TWICE the required occunence limlt. (b) Auldnobila Llability of One Million Dollars ($1 ,000,000) per accident for bodily iniury and property damage. (c) Gerage Keepers Legal Liability coverage wilh minimum limits of Tlrro HuMred Flfty Thousand Dollars ($250,000) per occunence. (d) Emflopr's Uability of One Million Dollars (Sl ,000.000) per accident for bodily injury or disease. (e) Wo*er's Compensation and Employer's Liabtity Insurance in an amount required by law. 10.4 Deductibles. Any deductibles or self-insured retentions musl be declared to and appoved by the City. At the option of the City, Franchisee shall eithori (a) Reduce or eliminate such deductibles or self-insured retentions as respect to lhe City, ib elected and appointed officials, oflicers, emplo)r€es, agents. representatives, attorneys, and volunteers; OR (b) Proq.re a bond, guaranteeing psymont of losses and r6lated investigations, claim administration and defense expenses. March 2015 10.5 REquired Endorsements. All of the policies required by this Agreement shall eantain, or be endorsed lo conhin, the following provisions: (a) City, its elected and appointed officials, ofrcers, emplo),Bes, agenE, representatlves, attomeys and volunteers shall be named as additional inu.rred parties, and the policies shall specifEally state that the coverage contained in the policies afiords insurance pursuant to the lerms and conditions as set forth in this Agreement. (b) The insurame cowraoe prcvided by he Franchisee shall be primary to any mverage avallable to the City. Any insurance or self-insurance maintained by City, its ofricers. offlcials, emplo),ees or volunteers shall be in ercess of Franchisee's own insurance and shall not contribute wilh it. (c) The insurarrce policies shall conbin no special limitations on the scope of protection afiorded to the City, its elecled and appointed officiab, officers, employees, agents, representiatives, atorne!6 or rolunteers. Further, the policies shall expressly waive the right of subrogation against City, its elected and appointed ofiicials, ofiicers, employees, agenb, representatives, attorneys or volunt6€rs. (d) Any failurB to comply with reporting or othsr provisions of the policies induding breaches of warranties shall not affect coverage provirJed to the City, its elscted and appointed officials, officers, employees, agents, represontaliv€s, attome)6 or volunt@rs. (e) The insurance coverage shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of he insureds liability. (0 Each insurance policy required by this seclion shall be endorsed to state that coverage SHALL NOT be suspended, voided, and/or canceled by either party, and thet there shall be no reduction in the amount of coveGge or in the limits applicable thereto EXCEPT after thirty (30) days prior wriften notice has boen given to the City, said written notice to be delivered by U.S. Cerlilied Mail, Return Receipt Requested addressed to lhe City Attorney and City Finance Director G) ln its sole discretion, the City may waive all or some portion of the above referenced insurance if such waiver is in writing and executed by Citys Finance Director- 10.6 Reouired lnsurance Ratim. Any insurance policy required by this Agreement shall be placed with an insurer admlfied in the State of Califomia with a current A.M. Best's rating of NO LESS THAN B+:Vll in the latest edition of Best's lnsurance Guide. 1O.7 Orioinal C.€rtiticates Reouired. At all times during the term of this Agreement, Franchisee shall maintain on file with the CiVs Finance Drector a certificate or certificates of insurancs. Said certificate or c€rtificates of lnsurance shall sho , that the abresaid policies are in effect in the requked amounls and shall contain each of tfie endorsements as set forth in Section 10.3. Franchisee shall, prior to commencement of work under this Agre€ment, file with the City Finance Direcbr the original certrficates effecting coverage required by this section of this Agreement The endorsements are to be signed by the person authorized by that insurer to March 2015 bind coverage on it6 b6half. The ondorsements ara to b€ received and apgoved by City before Francfiisoe @mmances operation under the terms of this Agreement 10,8 Failure to Mairrtain Reouired lnsurance. Franchisee agrees that if il falls to keep the aforGaid insuranc€ policies in full force and effect the City may, et its sole option, either (i) immediat€ly t€rminate this Agr€€ment or, (ii) if insurance is available at a reasonable cost, the City may lake out the necessary insurance end pay, at Franchisee's cost end €xpenr€, lh€ premium thereon, Section 11. TERMINATIONANDSUSPENSION. The City may torminale his AgrBement, without caus6, by glving the Francfiis€a thirty (3O) days written rptice of such termination and lhe effective date thereot. The Gity may terminate this Agr€ement, wilh caus€, by giving the Franchisee (10) days writbn notice of such tennination and the effoctive date thereof. Cancellation for cause shall ba at the dbcrdion of he City and shall be, but is not llmited to, failure b supply the materials, equipmenl or s€rvioe specmed within the time allowed or within lh6 terms, conditions or proyisions of this contract. The Francfiis€e may nol cencel lhis Agreemont wihout prior wftten consent from the Vedron Chief of PoIce. Section 12. TEMPOMRYSUSPENSION. ln addition to lermination or suspension as set forth in Saction 1'l , above, tre Chief of Police may temporarily suspend any Franchisee Mlhout a hearing, whonsver he oontinued operation by the Franchhee would constitute a danger to pubiic health, safety. trrelfare or public morals, including, without limitation, where therc is a failure to maintain the minimum ld/eb and slandards of laability insurance or claims r€serve or frailure to keep in full hrce and effect any epplicablB licsnses or pemits required by federal, state, local law, or regulation. The notice of temporery suspension may b€ personelly delivered to tha parly named and to th€ addr€ss given on the application pursuant lo which such Franchise was issued and to the notce address stated herein, il differenl or, mailed by registered or certfied mail to the party named at the address given on the applicalion pursuant to w1'lrch such FGnchise was issued and to the noticG address sEted herein, if differenl Notwithstanding other nolic€ provisions of this Agreement, the temporary suspen$on is effeclive upon the esrlier of eilher receipt or th€ expiration of 3 days from ths date of mailing. The notic€ of temporary suspension shall include a notce of he dats and time for termination hearirE and all oth€r information required by the Vemon Municipaf Code. The tomporary suspension shall r€main ellective until the decision on suspension or termination is made unlsss th€ suspension is lifted by written notie of the Chief of Police. Section 13. ACCEPTANCE. WAIVER. Franchisee agrees to be bound by and comply with all the r€quiremenb of Chapter 4B and lhis Agrcamant. By entering into tris Agreament, Franchisoc waivE6, to the maximum extent p€rmitied by hw, Franchisee's right to ohaflenge the terms of this AgrEernent and of Chapter 48 under federal, state or local law, or under administrative regulation, as such laws end r€gulations sxist as of th€ date of signing of this Agreement. Section 14. GENEMLTERMS AND CONDITIONS. 14.'l INDEPENDENT STATUS- lt as undBrstood that in the performance under this Agreement, Franchisoe shall be, and is, an independent operator. and is nol an ag6nt, March 2015 contractor, or omployee of City and shall fumish services in its own manner snd m6thod. Furthor, Franchisoe has and shall retain th€ right to exercise full conhol over lhe employment, dirsction, compensation and dbchaEe of all p€rsons emplotsd by Franchis€o in its tGinEss op€ralions. Franchis€€ shalt be sololy r€s?onsible for, and shatr i.6omnify, dofend and sarre city harmless ftom all matters relaling to the p€ymont of its ernployees, intluding compliance with social security, withholding and all otherwages, salaries, benefils, taxes, exlctions, and regulations of any nature whatsoer,,er. 14.2 FMNCHISE NOT AGENT. Franchises and its subconhactors shell have no authoriry, axpress or impliad, to act on behalf of or bind the Cify In any cap€city whatsoewr as agsnts or otherwise, 14.3 WAI\GR. The City's wairrer of any term, condition, bresch or d€fault of his Aore€rnent shall mt be considored to be a wai\€r of arry other lerm, condition, default or breach. nor of a subs€quent breach of he one uraived, 14.4 NO ASSIGNMENT. The Frdnchisee shall not assign or transfer any interest in t s Agreement without the express prior written mnsent and approval of City Crcuncil. 14.5 COMPLIANCEWITH re. Franchisee shall comply with aU Federal, Sbte, County and City laws, ordinances, resolulions, rules and regulaflons, nhich are, as amcnded ftom time to time, incorporated herein and applicable to the perlormance hereof. 14.6 ATTORNEYS FEES, lf any action at law or in equity is brought to enforce or interpret the terms of his &remont, the preyailirq party shall be entifled to rgasonable attomeyB fee6, coels and nocossery disbuG€rnents in addition to any other relief to which such party may b€ entiUod. 14,7 INTERPRETATION, 14.7.1 AEEIl!3lhE@. This AgrBement, and rhe righrs and dutkls of tho partres hereunder (both procedursl and substantive), shall be gowmed and construgd according lo ths lsws of the State of Celifsnia. 14.7.2 Entlre AorBem€nt. Thls AgrB€ment, includi.E any Exhibits attsched herelo and any doqJments explidfly referenced herein, consttut€s th€ €ntirp agrBement and under€tanding belwe€n th€ parties regarding lts sublect flEtter and supersedes all prior or contemporan€ous negotialions, represefihtions, understandings, correspondenco, doomentation and agreemenls (written or oral). 14.7.3 WJitten Amondment. This Agrcement may only be changed by written amendment signed by Franchisoo and the Gity Administrator or dher authorizad representatlve of the City, subioct to any requisite authorization by the City Council. Any oral representaliona or modifications conc€mirig this Agreement shall be of no furce or effed. - 14.7.4 Sevsrabilitv. lf any provision in this Agroemsnt iB held by any courl of competent jurisdiction to b€ inv€lid, illegal, vokl, or unenforceable, sucfr portion str-all be de€m€d sevar€d from this Agr€€ment, and the remaining providons shall neverlheless continue in full force and effect as fully as though suctr irwalid, illegal, or unenbrceeble portion had nevBr been pert of this Agr66ment. March 2015 14.7.5 Choice of Forum. The parties hereby agree that this Agre€ment is to b€ entorced in accordanc€ with the laws of the State of Califomia, is enterBd inio and is to be p€rformed in the City of Vennn and that all claims or conboversies arising out of or related to performance under this Agreement shall be submitted to aM resolved in a forum within lhe County of Los Angeles at a place to be determined by the rules of the forum. 14.7.6 Order of Pr€cadence. lncaseof conflict b€tur€€n the terms of tfris Agreement and thB terms contained in any document attached as an Exhibit or otherwis€ incorporated by reference, the order of precsdsnc€ is as follows: Cherter the City of Vemon, the V€mon Municipal Code, the ordinanc€ granting thb FrEnchis€, r€solutions of the City of Vemon this Agreement, the City's Req uest for Proposals for Ofiiciel Polics Towing SeNicas, and Franchisae's Response to the City's Request for Proposgls for Official Police To!,ving SeMces. 14.7.7 9C!1|!g3]E_q!S!!elS. There shall be two (2) fully signed copies of this Agre€rnent, each of which shall be deemed an original. 14.8 AUTHORITY OF FRANCHISEE. The Franchisee hereby represents ard waranb to the City thal he Franchisee has the right, power, legal capacity €nd authority to entgr into and p€rform its oblig€tions urder this Agreement, and its execulion of this Agraemant has been duly authorized, Section 15. AODITIOI\,JAL ASSURANCES. 15,1 EOUAL EMPLOYMENT OPPORTUNITY PRACTICES- Franchisee oertifies and rcprgBents that, during the performanc€ of this Agr€Ement, Franchisee and any other parties with whom it mey subconhact shal adhere to equal opportunity employment practices to assure thal applicents and employees are treated equally and are not discriminated against becaus€ of lheir race, religion, color, national origin, ancestry, disability, s€x, age, medical condilion, marital status. Franchisee further cert'fles that it will not maintain any segregated facilities. Franchisee further agrees to compty with The Equal Empbyment Opportunity Practices prMsions as set forth in Exhibit "C'. 15.2 EUSINESS LICENSES. Franchise€ shall obtain, and pay any and all cDsts associated therewiflr, any Vemon Business Licanse, whlch may be rEquired by the Vernon Municipal Code and all permits, and licorlsgG applicable to Franchisee's operations under this FrarEhise, which are rcquired of Franchisee by arry governmental agenry. 1 5.3 MATNTENANCE AN D r NS PECT roN_O. j_EEG9RDS. Th€ City, or its authorized auditors or representauves, shall have access to and the right to audit and reproduce any of he Franchisee's records to the extent the Crty deems necessery to insure it is receiving all money lo which it is entitled under the Agreement and/or is paying only he amounts to which Franchise€ ls properly entitled under the Agreement or for other purposes relating to the Agreement. The Franchisee shall maintain and prGerve all such records for a period of at leest 3 years after termination of the Agreement. The Franchisee shall mainiain all such records in the City of Vernon- lf nol, the Franchisee shall, upon Gquest, prornptly deliver the records to the City of Vemon or rBimburse li,larch 2015 the City for all reasonable and extra costs ;ncurred in conducting the audit at a location oth€r than the City of Vernon, including, but not limited to, such additional (out of the City) exp€nss for personsl, saleries, privale auditors, trsvel, lodging, meals and overfiead, 15.4 CONFLICT. Franchis€e hereby represents u/anants and certmes thst no member, officeror employ€e of the Franchis€e is a diroctor, offrcer or employee of the City of Vemon, or a member of any of ib boards, commissions or commiftees, e)Gept to the extent pennifi€d ry law. S€ction 16. LIVING WAGES. Franchisee, and any subcontrecto(s), shall comply with the Cit/s Living W4e Ordinanco. ThB current Living Wags Sbndards ars set forh in B(hibit 'D'. Upon the Cit/s ,Bquesq erlified payrcll records shall prcmpfly be provid€d to the City. Section 17. NOTICES. Excepl as otheruise provided in this Agre€ment, all notices required by this Aore€ment or by Ghapt€r 48 of the Vemon Municipal Code shall be giwn by peEonal seMce or by deposit in he Unitod States m8il, postage pre-pald and retum receipt rEquEsted, addressed io th€ parlies as follows: To City: Chief of Police Vemon Pdrce Depertmont 4305 Sanh Fe Avenue Vemon, CA 90058 Copies to: Director of Finane City of Vemon 4305 Sanb Fe Avenue Vemon, CA 90058 FranchLsEs: Notice shall be deemed efective on the date personally served or. if mailed, three days the date deposited in the mail. [Signatures Begin on Next Page]- March 2015 lN WTNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by their duly authorized representatives as of the date sel forth belorr. City of Vernon, a Calrfornla charter City [FRANCHTSEE'S NAME, a [SEte and CaliFornia municipal corporation incorporatsd inl corporation Mayor / Mayor ProTem ATTEST: Name: Title: By: Name: TitleiMaria E. Ayala, City Clerk APPROVED AS TO FORM: Her6 Patel, City Attomey March 2015 EXHIBIT A REQUEST FOR PROPOSALS March 2015 I i I EXHIBIT B FRANCHISEE'S PROPOSAL March 2015 A. B. EXHIBIT C THE EQUAL EMPLOYMENT OPPORTUNITY PRACTICES PROVISIONS Contraclor cartifies and represents that, during the performance of this Agreement, the contractcr and each subcontraclor sh€ll adhere to equal opportunity employrient pradices to assure that applicents and emplqrces are treated equally and are not discriminated against because of their race, religious creed, color, national origin, ancsstry, handicap, sex, or age- Conhador further c€rtifios that it will not maintain any segregated facilities. Contractor agrees that it shall, in all solicitations or advertisements for applicants for employnent placed by or on behalf of Contractor, state that it is an .Equal Opportunity Employef or that all qualiried applicants will receive conskleration for employment wiihout regard to their race, religious creed, color, naUonal origin, ancestry, handicap, sex or age. Contractor agre€s that it shall, if requested to do so by the City, certify that it has not, in the performance of this Agreement, discriminated against applicanb or employees because of their rn€rnbeEhip in a protected class. Contractor agrees to to, and, if requested to do so by City, through its awarding ll of its records pertaining or reiating to its employrnent practic€ ch records or portions of such rccords ar€ confidenlial or privileged under state or f€deral law. Nothing contained in this Agreement shall be construed in any manner as to require or permit any act which is prohibited by law. C, D. March 2015 EXHIBIT D LIVING WAGE PROVISIONS Minimum Livino Waoes; A.requirement that Employers pay guarifying emproyees a wage of no ress rhan g10.30 per hourwith health benefits, or $1 1.55 per hour without heaith beneliti. Paid and Unoaid Davs Off: Employers provide qualifoing employees al reast twelrc compensated dalc off per year for sick leave, vacation, or personal necessity, and an additionar ten'days a year if ,nc'oriensatea time for sick leave. No Reteliatlon: A prohibition on employer retaliation against employees complaining to the city with regard to the emplolrels compliance with the living wage ordinance. Employ-es may bring an "&ion insuperior court against an employer for back pay, trebre damages 'br willful violaiions, and attomey's fees, or to co,npel city ofiicials to terminate the servbe contact of violatirE empbye6. March 2015 EXHIBIT B EXHIBIT B FRANCHISEE'S PROPOSAL - 15 - FRANCHISE TOW FEE PROGRAM Submitted by: MR. C'S TOWING OF SOUTH GATE, INC. 4421 Mason Street South Gate, CA 90280 Tel: (323) 249-0575 Primary Contact: Jerry Brown, General Manager Submitted to: City of Vernon Attention: Captain Michael Gillman 4305 Santa Fe Avenue Vernon, CA 90058 COVER LETTER Mr. C's Towing of South Gate, lnc. 4421 Mason Street South Gate, CA 90280 (323) 249-0575 April 16, 2015 Mr. C's Towing of South Gate, lnc. (hereinafter "Mr. C's") is pleased to submit the following Proposal and relevant attachments in response to the City of Vernon (hereinafter "the City") Request For Proposals for the Franchise Tow Fee Program (RFP) which shall remain valid for a period of not less than ninety (90) days from the date of submittal. This cover letter is intended to provide a general overview of all relevant issues identified in the RFP, with details and elaboration in the Proposal and attachments. Mr. C's Towing, lnc., located in Los Alamitos, initially incorporated in California in 1986, under the direction of Kurtis McElroy. ln 2002 Mr. C's Towing of South Gate, located in South Gate, was incorporated in California, also under the direction of Kurtis McElroy, servicing by contract, not only the City of South Gate, but now includes the City of Bell, and CHP - East Los Angeles. Kurtis McElroy is President of the corporation, and Jerry Brown, retired after more than 30 years in law enforcement, serves as its General Manager, and is the designated contact person during the proposal evaluation process, at the above office number or his cell phone (323) 807-3515. Mr. C's is fully capable of conducting an official police towing service which complies with all of the requirements of Vernon Municipal Code Chapter 48, and by submission of this Proposal, agrees to accept all tow requests by the City, including tows of abandoned or dismantled vehicles and/or tows requiring special equipment as well as accident or roadway clean up. Mr. C's has and/or will have, all required business licenses, permits, and insurance for the type of services performed, and as specified in Vernon Municipal Code Chapter 48. Our facility is within the 7-mile radius of the Vernon City Hall and consists of a 55,000 sq. foot lot and 12,000 sq. feet of inside storage. The impound lot is fully fenced and secured, accessible by a solid metal electric gate for security. The property is equipped with 400 watt gas exterior lighting as well as state of the art color Digital Video Recorder (interior and exterior coverage). The inside storage includes a separate, secured area for vehicles retained as evidence and those impounded for CVC 522655.5. The investigation cage will hold six vehicles. We have an 8,000-pound capacity forklift on site to assist in moving vehicles around the warehouse and storage yard without requiring the use of a tow vehicle. The forklift is equipped with a bear claw attachment that allows it to be used as a tow vehicle, Page 2 April 16, 2015 contacting only the tires of the vehicle being moved. We also have a stationary vehicle lift in the warehouse to assist with inspections and investigations. Mr. C's has fifteen newer tow trucks, with varying features, all with a rating of one ton or greater, and includes 6 flat bed tow vehicles and one medium duty tow vehicle. Mr. C's will subcontract with Navarro's Towing and/or Pepe's Tow for any requested towing of semi-tractors, trailers or large motor homes. All of Mr. C's vehicles are equipped, operated and maintained in accordance with the provisions of California Vehicle Code 5524605, 25253,25300,27700 and 27907 and are inspected, each year, along with our facility, by CHP and contracted cities. Lien sales, including related paperwork and filings, are handled by Clear Choice, a licensed lien sale company. The business office, with dispatcher, is open 7 days per week. Our dispatcher is on duly 24 hours a day and vehicles are available for release from storage, day or night. A large sign, posted in a clearly visible location at the South Gate office, lists all fees associated with our business. Our proposed not to exceed rafes are as follows: . Towing fee . Storage fee . Service fee $175 $55.00 per day lz ol lhe above towing fee Service fees, referenced above, include, but are not limited to, the following: dollying, winching, clean up, after hour release fee, lock service and/or fuel service. As we have done for other public entities with whom we have been awarded contracts, we will submit timely payment of monthly franchise fees, based upon the towing and related services performed at the request of the City, at the rate and time as directed by the City, together with supporting reports/paperwork. Our drivers, many of whom are bilingual, are carefully screened to ensure the quality of personnel necessary to interact with clients and members of the public. They are highly qualified in towing and recovery. All drivers are CTTA and/or Wreckmaster trained and certified. A monthly update of company policies is conducted to ensure safety and consistency in the field. Drivers are required to submit to random drug testing, their driving record is checked on a regular basis, and have a criminal history check performed. The drivers' compensation complies with the Living Wage Ordinance Page 3 April 16,2015 we consider our company a highly qualified tow service company, with nearly three decades of collective experience, capable of furnishing impound, towing and storage services, with the necessary trained personnel, and equipment, within the required specifications and response times, the city is now seeking by this RFP for the Franchise Tow Fee Program. ln addition to providing the scope of work contemplated by the Franchise Tow Fee Program, Mr. C's has been involved in communi$ service charitable functions and events, such as Community Volunteer Programs, Police Explorer Programs, Police widows and orphans Fund and community lmprovement efforts to strengthen its community involvement with other local governments, and would anticipate similar involvement with the City of Vernon if awarded the contract. Mr. C's has been operating for more than a decade with a record of outstanding, problem free service to other local cities and police departments in the Los Angeles and looks forward to being able to do so for the City of Vernon. We sincerely appreciate your review of our Proposal and thank you in advance for your consideration. MR. C'S TOWING OF SOUTH GATE, INC. By: Kurtis McElrpy, President PROPOSAL QUALIFICATIONS Mr. C's Towing of south Gate, lnc. (hereinafter "Mr. C',s") is a california corporation, incorporated ii2OO2. Kurtis McElroy is President and the principal place of business is located a|4421 Mason St., South Gate, CA 90280; telephone (323) 249-0575' Perm its/Licenses Mr. C's maintains the following permits/licenses, all of which are current and in good standing: F Motor Carrier Permit (State of California Permit #CA41320) ) Business License (currently holds licenses for 10 cities in the Southeast area) A business license for the city of vernon will be obtained if awarded tow contract. lnsurance Mr. C's maintains the following insurance policies with the following limits: ) Commercial General Liability $1 million/$4 million umbrella ) On-Hook Liability $250,000) Business Automobile Liability $1 million ) Garage LiabilitY $1 million ) Garagekeepers Liability $500,000! Workers' Compensation ICW Statutory Limits Professional Qualifi cations Mr. C's understands the city of Vernon (hereinafter "the city") seeks a tow service company to provide swift, professional service in the removal of any vehicle, as directed by the Vernon Police Department, from any city street. lt is further understood the siope of services required includes furnishing impound, towing and storag€ s-ervices to the Vernon Police Department and the city as directed by Vernon PD. Mr. C's is fully capable and qualified to meet all such requirements and scope of services, including tows of abandoned or dismantled vehicles and/or tows requiring special equipment. Mr. C's has been operating since 1986, with a record of outstanding, problem free service to other local cities and police departments in Los Angeles and Orange counties. Services provided include response to calls in the field, and participating in DUI check points. lts President, Kurtis McElroy, along with other key personnel, bring extensive knowledge, background, training and experience to the table, having been in the tow service business nearly three decades. 1 Mr. C's is capable of towing and storing vehicles impounded by the police for any period of time, including in excess of 30 days, as well as clean up and disposal of debris at the scene of an accident at which any vehicle to be towed was involved. The impound lot is fully fenced and secured, accessible by a solid metal electric gate for security. The exterior yard has a capacity of at least 300-350 vehicles. The property is equipped with 400 watt gas exterior lighting as well as state of the art color Digital Video Recorder (interior and exterior coverage). The inside storage can hold approximately 50-65 vehicles, depending on size, in addition to which there is a separate, secured area for vehicles retained as evidence and those impounded for CVC 522655.5. The investigation cage will hold six vehicles. Photos of the property are provided as part of Appendix "A". Lien sales, including related paperwork and filings, are handled by a licensed lien sale company, Clear Choice, with lien sales held every Wednesday References Mr. C's list of clients has grown over the years because of the attention to detail and to the needs and requirements of law enforcement agencies and includes the following for both locations: AGENCY LOCATION SERVING SINCE City of Bell Police Dept Bell (323\ 585-1245 2014 - Present California Highway Patrol Westminster (714) 8924426 1987 - Present California Highway Patrol (Evidence Contract) Westminster (714\ 892-4426 1995 - Present California Highway Patrol East Los Angeles (562) 868-0503 2003 - Present La Palma Police Dept.La Palma (714\ 52234552 199'1 - Present Los Alamitos Police Dept.Los Alamitos (562) 431-2255 1987 - Present Los Angeles Sheriffs Dept. Hawaiian Gardens (562) 866-9061 1997 - Present Orange Co. Auto Theft Task Force Where needed (714) 634-1385 1994 - Present Seal Beach Police Dept.Seal Beach (562) 431-2541 1992 - Present Signal Hill Police Dept.Signal Hill (562) 989-7200 1994 - Present South Gate Police Dept.South Gate (323)563-5400 Dec20O2- Present ) Operations Qualifi cations The General Manager, Jerry Brown, has been with Mr. C's since incorporation and his retirement, after more than 30 years, in California law enforcement. As such, he has an intimate understanding of the needs and operations of a police department relative to the services required from a tow service. Mr. Brown is also highly involved in local city activities, including Chamber of Commerce in South Gate and Rotary Club of South Gate. He leads the Company in involvement in many City and Police Department activities for many of the cities in the surrounding Southeast area. Performance Qualifi cations Dispatch Process ln order to provide the required services, a dispatch operator is on duty 24 hours a day, 365 days a year. Mr. C's employs six dispatchers. The dispatching system is geared for prompt dispatching of calls, with corresponding prompt response. An analysis of Mr. C's records reveals an average arrival time in response to calls in the field is less than 10 minutes, exceeding the requirements of Sec. 48.11 of the Vernon Municipal Code, which provides for average response time not to exceed 20 minutes, and a maximum not to exceed time of 30 minutes. All tow trucks and base station are equipped with two-way radios on the 400 band. All calls are recorded in a carbon-copied call back book, by date and number, for a permanent record. The record includes the type of call, date, time, and location, and year, make and model of the vehicle. All such records are maintained in accordance with the business retention practice of at least three years. Office The office is open during business hours (0700 to 1800 hours, Monday through Friday) and vehicles are available for release from impound and storage 24 hours a day. Alternate hours, as directed by the City, will also be available by Mr. C's, in order to accommodate special City events. A designated area in the office is provided exclusively for use by law enforcement personnel, with access to a phone, facsimile, copier, computer and all necessary office supplies. Drivers Mr. C's currently employs a total of 25 drivers- All drivers, many of whom are bilingual, are carefully screened to ensure the quality of personnel necessary to interact with clients and members of the public. They are highly qualified in towing and recovery. All drivers are CTTA and/or Wreckmaster trained and certified. Each driver wears a Mr. C's uniform, complete with nametag that is clearly visible. They are required to be neat and clean, with hair, mustaches and beards neatly trimmed. Each driver carries a 3 change of uniform to ensure proper appearance and cleanliness. Color identification cards for all employees will be provided should the contract being awarded to Mr. C's. A monthly update of company policies is conducted to ensure safety and consistency in the field. Drivers are required to submit to random drug testing, their driving record is checked on a regular basis through a service with whom Mr. C's has a contract, and each driver has a criminal history check performed. Mr. C's employee compensation complies with the Living Wage Ordinance for qualifying employees. Attached at Appendix "B" is primary d river/person nel information, for exclusive use, not for public disclosure, for review and consideration by the City of this Proposal. Equipment Qualifications All tow vehicles and equipment of Mr. C's comply with all state and applicable federal requirements, where applicable. Mr. C's will subcontract with Navarro's Towing and/or Pepe's Tow for any requested towing of semi-tractors, trailers or large motor homes. Vehicles available to perform tow services to the City meet all requirements of Sec. 48.9C of the Vernon Municipal Code, properly identified by business name and Unit Number, and include the following: ) Flatbed carrier: 2014 Hino Model 260 (Unit 106) 2014 Hino Model 260 (Unit 107) 2013 Hino Model 260 (Unit 108) 2014 Hino Model 260 (Unit 109) 2014 Hino Model 260 (Unit 5) 2014 Hino Model 260 (Unit 110) ) Class A Tow: 2014 Ford F450 (Unit 902) 2014 Ford F450 (Unit 903) 2014 Ford F550 (Unit 1) 2012 Ford F450 (Unit 2) 2012 Ford F450 (Unil a) 2009 Dodge Ram 5500 (Unit 102) 2007 Ford F450 (Unit 103) 2000 GM Siena 3500 (Unit 3)) Class B Tow: 2008 Kenworth T280 (Unit 105) We have an 8,000-pound capacity forklift on site to assist in moving vehicles around the warehouse and storage yard without requiring the use of a tow vehicle. The forklift is equipped with a bear claw attachment that allows it to be used as a tow vehicle, contacting only the tires of the vehicle being moved. We also have a stationary vehicle lift to assist with inspections and investigations located in the warehouse. Attached as part of Appendix "C" are photos of the vehicles. 4 FRANCHISE FEES AND COSTS Our proposed rates not to exceed are as follows: . Towing fee . Storage fee . Service fee $ 175 $55.00 per day /. of lhe above towing fee Service fees, referenced above, include, but are not limited to, the following: dollying, winching, clean up, after hour release fee, lock service and/or fuel service. A large sign, posted in a clearly visible location at the South Gate office, lists all fees associated with our business. Mr. C's accepts the option of payment by MasterCard and Visa. As we have done for other public entities with whom we have been awarded contracts, Mr. C's will submit timely payment of monthly franchise fees, calculated based upon the towing and related services performed at the request of the City, at the rate and time directed by the City, together with supporting report in a spreadsheet format. The report is prepared from the invoices and logbook information prepared concurrent with the call for service and maintained by Mr. C's in accordance with its retention practice for a minimum of three years. Books and records are made available by Mr. C's for inspection by the City. COND]TIONS FOR RESPONSES TO RFP Mr. C's understands and accepts the conditions that apply to the RFP set forth in Section 8 of the RFP, requesting that Appendix "8" of driver personal information, be excluded from becoming a matter of public record, for privacy reasons. Respectfu lly submitted, MR. C'S OF SOUTH GATE, INC. 7<^ ) / KURTIS MC€LROY President 5 APPENDIX "A" . PROPERTY Mr. C's Towing of South Gate, lnc. South Gate Facilities Located at: 4421 Mason St., South Gate, CA 90280 (323) 249-0575 Manager's Office lnside Lobby Main Otfice showing both Pick-Up Windows Main Video Survelliance station, separate station for Secure Areas not shown lntside Pick-Up Window Customer Waiting Room il?' Main Gate to Storage facilities Entrance to Main Outside Storage Yard Main Outside Storage Yard View into Main lnside Storage Facility Secure Police Storage Area Secure Police Storage and lnspection Lift APPENDIX "8" . PERSONNEL Pursuant to California Government Code § 6254(c), personal information is non- disclosable; therefore, the next 12 pages are hereby withheld. APPENDIX "C" . VEHICLES :- /,;5@_ @ -J@rE -E -- E '., ',, +n :cfit # 1..en X\t*{[ -, t-,'o-.*i"" \$$.il i.\ E r\ :"'t I ----tI- ac..----1L w **[ AFFIDAVIT OF NON.COLLUSION AFFIDAVIT OF NON-COLLUSION BY CONTMCTOR STATE OF CALIFORNIA COUNTY OF LOS ANGELES Kurtis McElroy, being first duly sworn deposes and says that he is the President of Mr. C's Towing ofSouth Gate, Inc., who submits herewjth to the City ofVernon a bid/proposal: That all statemens of fact in such bid/proposal are true; That such bid/proposal is genuine and not collusive or sham; That said bidder has no! directly or indirectly by agreement, communication or conference with anyone attempted to induce action preiudicial to the interest of the city of Vernon, or of any other bidder or anyone else interested in the proposed contrac! 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 a8ree with anyone else that said bidder or anyone else would submit a false or sham bid/proposal, or that anyone should refrain flom 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 thereol or the contents thereof, or divulge information or data relative thereto, to any corporation, partnership, company, association, orBanization, 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 certifo under penalty of periury that the above information is correct. ) )ss ) Date:/-i5'-rf Title: President EXHIBIT C B EXHIBIT C THE EQUAL EMPLOYMENT OPPORTUNITY PRACTICES PROVISIONS 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. 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. 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. 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 elitent such records or portions of such records are confidential or privileged under state or federal law. Nothing contained in this Agreement shall be construed in any manner as to require or permit any act which is prohibited by law. D E. -16- EXHIBIT D EXHIBIT D LIVING WAGE PROVISIONS Minimum Livinq Waoes: A requirement that Employers pay qualifying employees a wage of no less than $10.30 per hour with health benefits, or $11.55 per hour without health benefits. Paid and Unpaid Davs Off: Employers provide qualifying employees at least twelve compensated days off per year for sick leave, vacation, or personal necessity, and an additional ten days a year of uncompensated time for sick leave. No Retaliation: A prohibition on employer retaliation against employees complaining to the City with regard to the employer's compliance with the living wage ordinance. Employees may bring an action in Superior Court against an employer for back pay, treble damages for willful violations, and attorney's fees, or to compel City officials to terminate the service contract of violating employers. -17- */o- Yl^t lr,alta n 6tlr ,5 lLl '/t, r, /n il 'ftRECEI\ F-D JUL 14 2015 CITY CLERl{'S OTFICE STAFF REPORT CITY ADMINISTRATION DATE: TO: FROM: RE: July 21,2015 Honorable City Council Mark c. whitworrh, city Adminisrr **@ I)iscussion of Proposed Elimination of Priority for First Responders in Leasing City-0wned Housing Recommendations A. Hold a discussion regarding the joint recommendation made by the Housing Commission and City staffto eliminate the priority for first responders in leasing City-owned housing. B. If the City Council concurs with the aforementioned recommendation, direct staff to prepare an ordinance to amend Section 2.125(b) of the Vemon Municipal Code to remove the first responder leasing priority, effective at 5:01 p.m. on December 8, 2015. Background At the July 7,2015 city council meeting, city staff presented the fnst reading of ordinance No. 1230. At that time, the proposed ordiaance included the following recommended revisions related to the Vemon Housing Commission: 1. Amend Section 2.125(b) of the Vernon Municipal Code to remove the first responder leasing priority, effective at 5:01 p.m. on December 8, 2015. 2. Amend section 2.123(a) of the vemon Municipal code to establish commission Member terms to run from July 1 through June 30, effective July 1, 2019 for four of the seven seats, and effective July I,202I for the three remaining seats. 3. Include uncodified sections to establish the aforementioned upcoming terms in order to fully effectuate the July I through June 30 terms. Upon consideration and deliberation ofthe proposed ordinance, the City Council voted to amend the ordinance to include only the revisions outlined in numbers 2 and 3 above, and approved the first reading of ordinance No. 1230, as amended. As such, ordinance No. 1230, as amended, is being presented for adoption in a separate staff report. The City Council voted to defer item 1, relating to the proposed removal of the first responder leasing priority, to the next meeting for firther discussion. Additional information was also requested in relation to the upcoming discussion. This matter is addressed below. Removal of First Responder Leasins Priority Section 2.125@) of the Vemon Municipal Code ("Code") requires the Housing Commission to provide first responders, as defined by the Commission with some minimum requirements imposed by the City, a first priority il leasing units unless or until four (4) or more units are concurrently occupied by fust responders. As required by the Code, fust responders are defined as: "City firefighters, police officers, emergency medical technicians, and similar positions held by employees of businesses located in Vemon." As further required by the Code, and in order to clariff the last category of the aforementioned, the Commission established tle following definition of a "business fust responder": "A business first responder is someone who is employed by a business located in the City of Vemon, regularly works 30 hours or more per week at a location in the City of Vemon, and holds either a current Emergency Medical Technician @MT) certificate or a Community Emergency Response Training ("CERT") certificate recognized by the City of Vemon." As many of you may recall, the establishment of the Housing Commission in July 201 1 was one of the earliest and most critical objectives ,rmong a sweeping series of good governance reforms enacted by the City in response to efforts by members of the state legislature to disincorporate the City. At the time the Commission was established and the first responder leasing priority was imposed by the City Council, there was much discussion and debate among the Commission, key stakeholders, and interested parties as to the importance and value of such a priority and the particular rules and limitations that should apply to such a priority if it were to exist. Pros and cons, such as the added safety provided to people and property versus the potential perception of favoritism and possible disproportionate representation that could result, were fleshed out by the Commission and the City Council. In light of the historic transition in which the City had entered and after careful consideration of all factors, the Council established the frst responder priority and limit as outlined above. Now, nearly four years after the Commission's widely successful overhaul of the City's housing policies and procedures, the question of the contilued importance and value of the first responder leasing priority compared against some of the practical challenges and negative perceptions it brings about has come up. As such, City sta.ff presented the matter to the Housing Commission for discussion at its June 10,2015 meeting. The discussion included the following additional questions/discussion points that would need to be addressed if the first responder leasing priority were to continue, along with City stafP s thoughts and recommendations: I . How should on-going first responder status be verified? 2. What 5h6uld happen if there is a change in first tesponder status during tenancy? 3. Should there be any specific occupancy requirements for first respondeff? Staff recommended that, if the Comrnission were to recommend the discontinuation of the first responder leasing priority, consideration be given to tle timing of such a change so as not to unfairly impact any self-identified first responders who have submitted ExpresJion of Interest Forms under the cunent priority for the lottery drawings to be held this calendar year. As such, staff recommends the discontinuation of the first responder leasing priority take effect at 5:01 p.m. on December 8, 2015, immediately following the deadline for interested parties to submit Expression of krterest Forms for the December 9,2015lottery drawing. The Housing commission is prepared to take up the discussion of what, if anyhing, should be addressed in relation to the three existing tenants who obtained their units as a'r".rrit of the first responder leasing priority, and make recommendations to the city council accordingly. First Resnonders Residinq at Vernon Villase park During the deliberation at the hly 7,2015 meeting, the council asked city staff to find out how many first responders, as defined by the city council and the Housing commission, are currently living at vemon village Park, the new, privately-owned and operated, 45-unit apartment complex at the southeast comer of the City. staff has been advised by the developer of the project, Meta Housing corporation (.,Meta,,), that all 45 units are now occupied (including the on-site manager's unit;, and that none ofthe units are occupied by first responderc. On a somewhat related note, Meta has also advised that eleven tenants work at a business located within the City of Vemon, and tlree tenaats previously lived within a one-mile radius of the site. Finst Resoonders Residine in Citv-Owned Housine currently, there are tlree fust responders residing in city-owned housing units (two city Firefighters and one City Police Officer) that obtained their units through the leasing priority. However, one of the Firefighter tenants has norified the City ofhis intent to vacate ii. uoit on August 31,2015. Pursuant to Section 2.125(b) of the Vemon Municipal Code, the frst responder leasing priority isprovided until four or more units fie concurrently occupied by first responders. There are 25 interested parties on the current wait list, and 7 ofthose have indicated they are first responders. Fiscal Imoact There are no known or anticipated costs associated with the discussion and recommendations outlined in this staff report. Attachment(s) None. Page 3 of 3