20211215 City Council Agenda Packet (Special)1. Public Works
Permanent Local Housing Allocation Application to the Department of Housing and
Community Development
Recommendation:
Adopt Resolution No. 2021-45 approving and authorizing the submittal of a
Permanent Local Housing Allocation (PHLA) Program application to the California
Department of Housing and Community Development and adopting the PLHA plan
for the Permanent Local Housing Program.
1. Resolution No. 2021-45
2. PLHA - Notice of Public Hearing
Agenda
City of Vernon
Special City Council Meeting
Wednesday, December 15, 2021, 8:45 AM
Remote Location Via Zoom
Melissa Ybarra, Mayor
William Davis, Mayor Pro Tem
Leticia Lopez, Council Member
Crystal Larios, Council Member
Judith Merlo, Council Member
MEETING ATTENDANCE PROTOCOLS
Assembly Bill 361 (AB 361) authorizes public meetings to take place via teleconference
because State and Local officials are recommending measures to promote social distancing.
This meeting will be conducted via Zoom participation.
The public is encouraged to view the meeting at https://www.cityofvernon.org/webinar-special
or by calling (408) 638-0968, Meeting ID 828-3737-2984#. You may address the Council via
Zoom or submit comments to PublicComment@ci.vernon.ca.us with the meeting date and
item number in the subject line
CALL TO ORDER
FLAG SALUTE
ROLL CALL
APPROVAL OF THE AGENDA
PUBLIC COMMENT
Members of the public interested in addressing the City Council during this Special Meeting
may address any item which has been described in the notice of this Special Meeting before
or during consideration of that item in accordance with Government Code Section 54954.3(a).
For Closed Session matters members of the public shall be provided an opportunity to
address the City Council before the Council recesses into Closed Session.
PUBLIC HEARINGS
Special City Council Meeting December 15, 2021
Page 1 of 4
3. Appendix C of PLHA NOFA
4. PLHA PLAN
5. PLHA Program Application
2. Public Utilities
Labor and Materials Contract with Nalco Company LLC
Recommendation:
Approve and authorize the City Administrator to execute a Labor and Materials
Contract with Nalco Company LLC, in substantially the same form as submitted, to
provide water treatment chemicals and equipment necessary to sustain reliable
operation of the Malburg Generating Station for a six-month term, in an amount not-
to-exceed $200,000.
1. Labor and Materials Contract with Nalco Company LLC
3. Public Utilities
Amendment No. 1 to the Services Agreement with Jacobs Engineering Group, Inc.,
for Environmental Compliance Support Services
Recommendation:
Approve and authorize the City Administrator to execute Amendment No. 1 to
Services Agreement with Jacobs Engineering Group, Inc. (Jacobs), in substantially
the same form as submitted, to amend the scope of work for as-needed
environmental compliance support services and increase the agreement value by an
additional $404,909, for a grand total not-to-exceed amount of $744,822.
1. Amendment No. 1 - Jacobs Engineering Group, Inc.
4.CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Government Code Section 54956.8
Property: Malburg Generating Station, 2715 East 50 th Street, Vernon, California
Agency negotiator: Carlos Fandino, City Administrator
Negotiating parties: Bicent (California) Malburg LLC
Under negotiation: Consideration of Price and Terms of Payment
5.CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION
Significant exposure to litigation
Government Code Section 54956.9(d)(2)
Number of potential cases: 1
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 will be
considered immediately after the Consent Calendar.
NEW BUSINESS
ORAL REPORTS
City Administrator Reports on Activities and other Announcements.
City Council Reports on Activities (including AB1234), Announcements, or Directives to Staff.
CLOSED SESSION
Special City Council Meeting December 15, 2021
Page 2 of 4
CLOSED SESSION REPORT
ADJOURNMENT
I hereby certify under penalty of perjury under the laws of the State of California, that the
foregoing agenda was posted in accordance with applicable legal requirements. Regular and
Adjourned Regular meeting agendas may be amended up to 72 hours prior to the meeting.
Special meeting agendas may be amended up to 24 hours prior to the meeting.
Dated this 13th day of December, 2021.
By: __________________________________
Lisa Pope, City Clerk
Guide to City Council Proceedings
Meetings of the City Council are held the first and third Tuesday of each month at 9:00 a.m.
and are conducted in accordance with Rosenberg's Rules of Order (Vernon Municipal Code
Section 2.1-1).
Copies of all agenda items and back-up materials are available for review in the City Clerk
Department, Vernon City Hall, 4305 Santa Fe Avenue, Vernon, California, and are available
for public inspection during regular business hours, Monday through Thursday, 7:00 a.m. to
5:30 p.m. Agenda reports may be reviewed on the City's website at www.cityofvernon.org or
copies may be purchased for $0.10 per page.
Disability-related services are available to enable persons with a disability to participate in
this meeting, consistent with the Americans with Disabilities Act (ADA). In compliance with
ADA, if you need special assistance, please contact the City Clerk department at
CityClerk@ci.vernon.ca.us or (323) 583-8811 at least 48 hours prior to the meeting to assure
arrangements can be made.
The Public Comment portion of the agenda is for members of the public to present items,
which are not listed on the agenda but are within the subject matter jurisdiction of the City
Council. The City Council cannot take action on any item that is not on the agenda but matters
raised under Public Comment may be referred to staff or scheduled on a future agenda.
Comments are limited to three minutes per speaker unless a different time limit is announced.
Speaker slips are available at the entrance to the Council Chamber.
Public Hearings are legally noticed hearings. For hearings involving zoning matters, the
applicant and appellant will be given 15 minutes to present their position to the City Council.
Time may be set aside for rebuttal. All other testimony shall follow the rules as set for under
Public Comment. If you challenge any City action in court, you may be limited to raising only
those issues you or someone else raised during the public hearing, or in written
correspondence delivered to the City Clerk at or prior to the public hearing.
Consent Calendar items may be approved by a single motion. If a Council Member or the
public wishes to discuss an item, it may be removed from the calendar for individual
consideration. Council Members may indicate a negative or abstaining vote on any individual
item by so declaring prior to the vote on the motion to adopt the Consent Calendar. Items
excluded from the Consent Calendar will be taken up following action on the Consent
Special City Council Meeting December 15, 2021
Page 3 of 4
Calendar. Public speakers shall follow the guidelines as set forth under Public Comment.
New Business items are matters appearing before the Council for the first time for formal
action. Those wishing to address the Council on New Business items shall follow the
guidelines for Public Comment.
Closed Session allows the Council to discuss specific matters pursuant to the Brown Act,
Government Code Section 54956.9. Based on the advice of the City Attorney, discussion of
these matters in open session would prejudice the position of the City. Following Closed
Session, the City Attorney will provide an oral report on any reportable matters discussed and
actions taken. At the conclusion of Closed Session, the Council may continue any item listed
on the Closed Session agenda to the Open Session agenda for discussion or to take formal
action as it deems appropriate.
Special City Council Meeting December 15, 2021
Page 4 of 4
City Council Agenda Item Report
Submitted by: Daniel Wall
Submitting Department: Public Works
Meeting Date: December 15, 2021
SUBJECT
Permanent Local Housing Allocation Application to the Department of Housing and
Community Development
Recommendation:
Adopt Resolution No. 2021-45 approving and authorizing the submittal of a Permanent Local
Housing Allocation (PHLA) Program application to the California Department of Housing and
Community Development and adopting the PLHA plan for the Permanent Local Housing
Program.
Background:
On May 3, 2021, the Department of Housing and Community Development (HCD) released
the Permanent Local Housing Allocation (PLHA) Program Entitlement and Non-Entitlement
Formula Component Notice of Funding Availability (NOFA). Under this formula, the City of
Vernon’s funding allocation (FA) is $392,000 of the total $304 million available to local
jurisdictions (Applicants). The PLHA program was established to assist local governments
fund housing-related projects and programs to address the unmet housing needs in their
communities. The application is due December 31, 2021.
The Vernon Housing Commission at its December 8, 2021 meeting voted to recommend the
City Council approve and authorize the submittal of a Permanent Local Housing Allocation
(PHLA) Program application to the California Department of Housing and Community
Development.
Eligible Activities
HCD has identified a wide range of activities eligible under this program and requests that the
applicant provide a plan (Plan) outlining their intended eligible activities.
1. Predevelopment, development, acquisition, rehabilitation, and preservation of multifamily,
residential live-work, rental housing;
2. Predevelopment, development, acquisition, rehabilitation, and preservation of affordable
rental and ownership housing, which includes accessory dwelling units (ADUs);
3. Matching funds to be placed local or regional housing trust funds;
4. Matching funds for the Housing Asset Fund;
5. Capitalized reserves for services connected to the preservation and creation of new
permanent supportive housing;
6. Assisting person who are experiencing or at risk of homelessness via Rapid Rehousing,
rental assistance, street outreach, and supportive services;
7. Accessibility modifications for lower-income owner-occupied housing;
8. Efforts to acquire and rehabilitate foreclosed or vacant homes and apartments;
9. Homeownership opportunities (I.e. down payment assistance); and
10. Fiscal incentives in the form of a grant or low-interest loan
If awarded, the City plans to use this funding towards homeownership opportunities including,
but not limited to, a down payment assistance program.
Threshold Requirements
HCD communicated that this is a low-barrier funding opportunity. As such, Applicants will
generally receive their funding allocations so as long as they submit a complete application
that meets threshold requirements. Applicants must have submitted their updated Housing
Element by the application deadline and have subsequently determined to follow state
Housing Element law. Applicants must also submit to HCD the Annual Progress Report
(APR). The completed application must include authorization from the governing body (via
Resolution) to submit an application. In addition to the Plan detailing how allocated funds will
be used for eligible activities, a description of the methods by which the applicant will prioritize
investments that will increase housing stock for households with an income at or below 60%
area median income (AMI) is also required. The Plan should also demonstrate consistency
with the applicant’s Housing Element.
The Plan shall be in effect for five (5) years. Plan years are based on the year during which
the funds were accrued by the state (2019-2023). After Applicants have been awarded their
first year FA, they must demonstrate all threshold requirements continue to be met in
subsequent years. HCD approval will be required for any amendments during the term.
The City of Vernon has a funding allocation under this grant and can adequately demonstrate
its ability to undergo projects that are considered eligible activities. If awarded, the City of
Vernon plans to use this funding towards homeownership opportunities. Next steps include
deliberating with necessary stakeholders to design a program to provide homeownership
opportunities. Resolution No. 2021-45 will approve and authorize the Director of Public Works
to apply for PLHA funding and, if awarded, will allow the Director to enter into, execute, and
deliver a Standard Agreement with the State of California and any and all other documents
required to evidence and secure PLHA Program funds.
Pursuant to the PLHA Program Final Guidelines Section 302 (4)(D), on November 25, 2021,
the public hearing notice was posted at City Hall and published in the Los Angeles Wave
(Huntington Park Bulletin) (Attachment 1).
Fiscal Impact:
There is no fiscal impact associated with this report. If the City's PLHA application is accepted,
Vernon will be awarded a funding allocation of $392,000.
Attachments:
1. Resolution No. 2021-45
2. PLHA - Notice of Public Hearing
3. Appendix C of PLHA NOFA
4. PLHA PLAN
5. PLHA Program Application
RESOLUTION NO. 2021-45
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON
APPROVING AND AUTHORIZING THE SUBMITTAL OF A PERMANENT
LOCAL HOUSING ALLOCATION (PLHA) PROGRAM APPLICATION TO
THE CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY
DEVELOPMENT AND ADOPTING THE PLHA PLAN FOR THE
PERMANENT LOCAL HOUSING PROGRAM
SECTION 1. Recitals.
A.On December 8, 2021. the Vernon Housing Commission voted to recommend the
City Council approve and authorize the submittal of a Permanent Local Housing
Allocation (PHLA) Program application to the California Department of Housing and
Community Development.
B.The State of California Department of Housing and Community Development
(HCD) is authorized to provide up to $304 million under the SB 2 Permanent Local
Housing Allocation Program Formula Component from the Building Homes and Jobs
Trust Fund for assistance to Cities and Counties (as described in Health and Safety Code
Section 50470 et seq. (Chapter 364, Statutes of 2017 (SB 2)).
C.HCD issued a Notice of Funding Availability (NOFA) dated May 3, 2021, under the
PLHA.
D.The City of Vernon (City) is an eligible local government that intends to apply for
program funds to administer one or more eligible activities.
E.HCD may approve funding allocations for PLHA Program, subject to the terms and
conditions of the Guidelines, NOFA, Program requirements, the Standard Agreement,
and other contracts between HCD and PLHA grant recipients.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF VERNON AS FOLLOWS:
SECTION 2. The City Council of the City of Vernon hereby finds and determines
that the above recitals are true and correct.
SECTION 3. If the City receives a grant of PLHA funds for HCD pursuant to the
above referenced PLHA NOFA, it represents and certifies that it will use all such funds
in a manner consistent and in compliance with all applicable state and federal statutes,
rules, and regulations, and laws, including without limitation all rules and laws regarding
the PLHA Program, as well as any and all contracts the City may have with HCD.
SECTION 4. The City Council hereby authorizes and directs the City to apply for
Resolution No. 2021-45
Page 2 of 2
_______________________
a PLHA grant, in an amount not to exceed the five-year estimate of the PLHA formula
allocations, as stated in Appendix C of the current NOFA.
SECTION 5. The City hereby agrees to use the PLHA funds for eligible activities
as approved by HCD and in accordance with all Program requirements, Guidelines, other
rules, and laws, as well as in a manner consistent and in compliance with the Standard
Agreement and other contracts between the City and HCD.
SECTION 6. In accordance Section 302(c)(4) of the Guidelines, the City Council
hereby adopts the City’s PLHA Plan for the 2019-2023 Allocations and certifies
compliance with all public notice, public comment, and public hearing requirements in
accordance with the Guidelines.
SECTION 7. The City shall be subject to the terms and conditions as specified in
the Standard Agreement, the PLHA Program Guidelines and any other applicable SB2
Guidelines published by HCD.
SECTION 8. The City Council hereby authorizes the Director of Public Works to
execute the PLHA Program Application, the PLHA Standard Agreement and any
subsequent amendments or modification thereto, as well as any other documents which
are related to the Program to the PLHA grant awarded to the City, on behalf of, the City
of Vernon and the City Clerk is hereby authorized to attest thereto, as HCD may deem
appropriate.
SECTION 9. The City Clerk shall certify the passage and adoption of this resolution
and enter it into the book of original resolutions.
APPROVED AND ADOPTED this 15th day of December, 2021.
_____________________________
MELISSA YBARRA, Mayor
ATTEST:
LISA POPE, City Clerk
(seal)
APPROVED AS TO FORM:
ZAYNAH N. MOUSSA,
Interim City Attorney
City of Vernon
NOTICE OF CITY COUNCIL PUBLIC HEARING
The City Council of the City of Vernon will conduct a public hearing, which you may attend, at Vernon City Hall, City
Council Chamber, 4305 Santa Fe Avenue, Vernon, CA 90058, on Tuesday, December 7, 2021,at 9:00 a.m.(or as soon
thereafter as the matter can be heard), to:
Consider adoption of a resolution approving and authorizing the submittal of a Permanent Local Housing
Allocation Program (PLHA) application to the California Department of Housing and Community Development
and adopting the PLHA Plan for the Permanent Local Housing Program.
The proposed resolution will be available for public review on the City’s website once the agenda for the meeting is
posted or from the City Clerk at CityClerk@ci.vernon.ca.us or 323-583-8811, ext. 546.
Please send your comments or questions to:
Daniel Wall, Director of Public Works
City of Vernon
4305 Santa Fe Avenue
Vernon, CA 90058
(323) 583-8811 Ext. 305
Email: dwall@ci.vernon.ca.us
If you challenge adoption of the proposed resolution 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 Vernon at, or prior to, the meeting.
In compliance with the Americans with Disabilities Act (ADA), if you need special assistance to participate in the
meeting, please contact the Office of the City Clerk at (323)583-8811 ext. 546.
The hearing may be continued, adjourned, or cancelled and rescheduled to a stated time and place without further
notice of a public hearing.
__________________________________
Lisa Pope, City Clerk
Posted: November 22, 2021
Publish:November 25,2021
4305 Santa Fe Avenue
Vernon, CA 90058
(323) 583-8811
Department of Housing and Community Development
Permanent Local Housing Allocation
2021 Entitlement and Non-Entitlement Local government Formula Allocation NOFA
Appendix C
Estimate of Five-Year PLHA Allocation for Entitlement and
Non-Entitlement Local government
Entitlement Local government Non-Entitlement Local government
Local government Estimate 5-Year
Funding Amount Local government Estimate 5-Year
Funding Amount
Alameda $3,352,590 Alpine County $408,390
Alhambra $2,793,768 Alturas $475,835
Aliso Viejo $715,062 Amador City $395,168
Anaheim $12,931,710 Amador County $805,115
Antioch $2,365,410 American Canyon $704,612
Apple Valley $1,725,366 Anderson $622,622
Bakersfield $10,385,412 Angels $487,737
Baldwin Park $2,929,068 Arcata $1,056,372
Bellflower $3,081,744 Artesia $814,372
Berkeley $7,761,504 Arvin $831,563
Buena Park $2,215,452 Atwater $949,257
Burbank $2,863,092 Auburn $719,158
Camarillo $812,124 Avenal $627,912
Carlsbad $1,635,492 Benicia $848,754
Carson $2,488,380 Biggs $424,261
Cathedral City $1,699,338 Bishop $502,283
Cerritos $655,278 Blue Lake $409,715
Chico $2,342,088 Brawley $906,940
Chino $1,496,190 Butte County $2,000,572
Chino Hills $1,063,710 Calaveras County $1,238,865
Chula Vista $6,356,898 Calexico $1,222,996
Citrus Heights $1,876,554 Calimesa $532,699
Clovis City $2,193,654 Calipatria $462,611
Compton $4,618,320 Calistoga $511,540
Concord $2,932,710 Capitola $630,557
Corona $3,492,018 Carmel-by-the-Sea $491,704
Costa Mesa $3,171,486 Chowchilla $662,295
Cupertino City $993,060 Clearlake $875,203
Daly City $3,070,926 Coalinga $618,655
Davis $1,817,544 Colfax $432,196
Delano City $1,950,744 Colusa $515,507
Downey $3,121,674 Colusa County $500,961
El Cajon $3,872,292 Corcoran $683,453
El Centro $1,475,988 Corning $555,180
Elk Grove $2,638,722 Crescent City $485,092
El Monte $5,083,752 Del Norte County $844,787
21
Department of Housing and Community Development
Permanent Local Housing Allocation
2021 Entitlement and Non-Entitlement Local government Formula Allocation NOFA
Entitlement Local government Non-Entitlement Local government
Local government Estimate 5-Year
Funding Amount Local government Estimate 5-Year
Funding Amount
Encinitas $936,264 Dinuba $889,749
Escondido $5,057,466 Dixon $692,710
Fairfield $2,345,460 Dorris $399,135
Fontana $5,886,732 Dos Palos $496,994
Fountain Valley $867,648 Dunsmuir $432,196
Fremont $3,846,960 El Centro $1,297,051
Fresno $20,445,618 El Dorado County $2,879,974
Fullerton $4,130,712 Etna $403,103
Gardena $1,979,262 Eureka $1,125,138
Garden Grove $5,966,058 Exeter $586,917
Gilroy City $1,465,554 Farmersville $589,562
Glendale $5,202,150 Ferndale $426,906
Glendora City $781,548 Firebaugh $572,371
Goleta $564,090 Fort Bragg $641,136
Hanford $1,772,808 Fort Jones $415,004
Hawthorne $3,676,914 Fortuna $651,715
Hayward $3,910,410 Fowler $486,414
Hemet $2,415,216 Glenn County $641,136
Hesperia $3,034,662 Grass Valley $813,049
Huntington Beach $3,290,970 Greenfield $839,497
Huntington Park $3,910,068 Gridley $555,180
Indio City $2,735,772 Grover Beach $727,093
Inglewood $4,414,656 Guadalupe $606,754
Irvine $4,547,862 Gustine $441,452
Laguna Niguel $920,484 Hidden Hills $428,228
La Habra $2,333,202 Hollister $1,081,498
Lake Forest $1,326,420 Holtville $495,671
Lake Elsinore $1,491,162 Humboldt County $2,066,693
Lakewood $1,625,082 Huron $597,497
La Mesa $1,132,854 Imperial $548,568
Lancaster $4,169,130 Imperial County $1,043,148
Livermore $1,251,240 Indian Wells $532,699
Lodi $2,017,590 Industry $393,581
Lompoc $1,362,162 Inyo County $622,622
Long Beach $17,560,704 Ione $452,032
Los Angeles $157,317,438 Jackson $524,764
Lynwood $3,788,322 King City $805,115
Madera $2,533,914 Kings County $980,995
Menifee $1,509,624 Lake County $1,450,450
Merced $3,112,314 Lakeport $475,835
Milpitas City $1,431,570 Lassen County $612,043
Mission Viejo $1,240,098 Lemoore $871,235
22
Department of Housing and Community Development
Permanent Local Housing Allocation
2021 Entitlement and Non-Entitlement Local government Formula Allocation NOFA
Entitlement Local government Non-Entitlement Local government
Local government Estimate 5-Year
Funding Amount Local government Estimate 5-Year
Funding Amount
Modesto $5,818,482 Lincoln $1,219,029
Montebello $1,900,548 Lindsay $703,289
Monterey $698,514 Live Oak $537,988
Monterey Park $1,913,226 Livingston $653,038
Moreno Valley $6,178,854 Loomis $490,382
Mountain View $1,539,306 Los Banos $1,129,105
Napa City $1,909,260 Loyalton $405,747
National City $2,359,146 Madera County $1,643,522
Newport Beach $1,017,678 Mammoth Lakes $490,382
Norwalk $3,556,572 Maricopa $400,458
Oakland $22,226,850 Marina $945,290
Oceanside $3,894,906 Mariposa County $770,732
Ontario $5,520,108 Marysville $662,295
Orange $3,644,898 McFarland $676,841
Oxnard $6,950,574 Mendocino County $2,099,753
Palmdale $4,674,384 Merced County $1,865,687
Palm Desert $1,027,836 Modoc County $458,644
Palm Springs $1,153,422 Mono County $462,611
Palo Alto $1,388,976 Montague $412,359
Paradise $561,576 Mount Shasta $539,311
Paramount City $2,629,182 Napa County $859,334
Pasadena $5,616,456 Nevada City $473,190
Perris City $2,799,192 Nevada County $1,837,916
Petaluma $1,106,142 Orange Cove $608,076
Pico Rivera $2,033,838 Orland $555,180
Pittsburg $1,906,098 Oroville $822,306
Placentia $1,288,644 Pacific Grove $712,546
Pleasanton City $906,534 Palos Verdes Estates $580,305
Pomona $6,410,670 Parlier $801,148
Porterville $2,056,524 Pismo Beach $597,497
Rancho Cordova City $1,712,196 Placer County $2,730,542
Rancho Cucamonga $2,702,856 Placerville $664,940
Rancho Santa Margarita $608,376 Plumas County $727,093
Redding $2,020,884 Plymouth $404,425
Redondo Beach $784,980 Point Arena $404,425
Redwood City $2,086,314 Portola $452,032
Rialto $3,586,716 Rancho Mirage $1,032,569
Riverside $9,732,750 Red Bluff $744,284
Rocklin City $807,828 Rio Dell $474,513
Rosemead $2,059,428 Rio Vista $577,661
Roseville $1,880,196 Riverbank $732,382
Sacramento $14,142,402 San Benito County $727,093
23
Department of Housing and Community Development
Permanent Local Housing Allocation
2021 Entitlement and Non-Entitlement Local government Formula Allocation NOFA
Entitlement Local government Non-Entitlement Local government
Local government Estimate 5-Year
Funding Amount Local government Estimate 5-Year
Funding Amount
Salinas $6,041,082 San Joaquin $471,868
San Bernardino $9,732,162 San Juan Bautista $455,999
San Clemente $1,134,240 San Juan Capistrano $1,418,712
San Diego $34,741,098 Sand City $402,838
San Francisco $52,308,210 Santa Cruz County $3,395,713
San Jose $26,091,876 Scotts Valley $622,622
San Leandro $2,099,760 Shasta County $1,721,544
San Marcos City $1,915,068 Shasta Lake $613,366
San Mateo $2,051,364 Sierra County $405,747
Santa Ana $16,822,236 Siskiyou County $852,722
Santa Barbara $2,718,654 Solano County $769,410
Santa Clara $2,876,946 Soledad $725,770
Santa Clarita $3,529,554 Sonora $548,568
Santa Cruz $1,588,464 South Lake Tahoe $994,219
Santa Maria $4,400,826 St. Helena $534,021
Santa Monica $3,285,096 Suisun City $928,099
Santa Rosa $4,165,950 Susanville $559,147
Santee $806,244 Sutter County $698,000
Seaside $1,158,744 Sutter Creek $471,868
Simi Valley $1,742,142 Taft $543,278
South Gate $4,327,920 Tehama $393,581
South San Francisco $1,307,880 Tehama County $1,120,113
Stockton $10,268,580 Trinidad $396,491
Sunnyvale $3,198,138 Trinity County $729,738
Temecula $1,640,358 Truckee $627,912
Thousand Oaks $1,776,240 Tulare County $3,501,506
Torrance $2,666,244 Tulelake $411,037
Tulare $1,910,598 Tuolumne County $1,453,095
Turlock $1,859,124 Ukiah $778,667
Tustin $2,313,270 Vernon $392,259
Union City $1,523,610 Wasco $813,049
Upland $1,667,022 Weed $459,966
Vacaville $1,443,000 Westmorland $436,163
Vallejo $3,032,214 Wheatland $432,196
San Buenaventura $2,144,634 Williams $485,092
Victorville $3,796,620 Willits $553,857
Visalia $3,784,890 Willows $561,792
Vista $2,453,292 Winters $532,699
Walnut Creek $830,694 Woodlake $539,311
Watsonville $2,175,090 Yolo County $819,661
West Covina $2,332,578 Yountville $486,414
Westminster $3,063,462 Yreka $612,043
24
Department of Housing and Community Development
Permanent Local Housing Allocation
2021 Entitlement and Non-Entitlement Local government Formula Allocation NOFA
Entitlement Local government Non-Entitlement Local government
Local government Estimate 5-Year
Funding Amount Local government Estimate 5-Year
Funding Amount
West Sacramento $1,420,074 Yuba County $1,634,265
Whittier $2,299,140
Woodland $1,493,934
Yorba Linda $639,174
Yuba City $1,866,840
Alameda County $5,603,190
Contra Costa County $13,021,068
Fresno County $9,860,088
Kern County $12,962,064
Los Angeles County $66,150,756
Marin County $4,353,426
Monterey County $3,890,280
Orange County $7,632,984
Riverside County $23,977,026
Sacramento County $16,324,956
San Bernardino County $20,754,846
San Diego County $11,879,796
San Joaquin County $7,861,158
San Luis Obispo County $5,235,012
San Mateo County $7,257,300
Santa Barbara County $3,418,722
Santa Clara County $4,420,398
Sonoma County $5,396,358
Stanislaus County $6,929,892
Ventura County $5,158,494
25
PERMANENT LOCAL HOUSING ALLOCATION PROGRAM PLAN
§302(c)(4) Plan Rev. 5/14/21
§302(c)(4)(A) Describe the manner in which allocated funds will be used for eligible activities.
With this funding, the City of Vernon plans to implement afirst-time homebuyers' downpayment assistance program. Staff will develop eligibility criteria, which will include income and credit threshold
requirements. Funds secured through this grant will be disbursed to qualifying individuals that are first-time homebuyers who meet eligibility critieria. With this funding, the City will provide and require that
applicants undergo afirst-time homebuyer educational program to learn the details of the homebuying process, including but not limitied to real estate and mortgage terminology, financial readiness, and fair
housing policy.
§302(c)(4)(B) Provide a description of the way the Local government will prioritize investments that increase the supply of housing for households with incomes at or below 60 percent of Area Median
Income (AMI).
The City of Vernon will develp a comprehensive application for its down payment assistance program. The application will apply additional weight to applications for households with incomes at or below 60
percent of Area Median Income to increase housing supply for this demograpic. Additionally, the City will continue to seek out additional financial resources that can be leveraged with this funding to assist
households within this demographic.
§302(c)(4)(C) Provide a description of how the Plan is consistent with the programs set forth in the Local Government's Housing Element.
The City of Vernon owns much of the housing within the City. Program 18 of the City's draft Housing Element calls for aCity-owned Housing Disposition Study. Afirst-time homebuyers' down payment
assistance program would be an important component in the dispostion of city-owned housing. The Housing Element contemplates diversified home ownership, and afirst-time homebuyers' down payment
assistance program would help ensure that ownership opportunites are available to a broad cross section of the population in the region.
Activities Detail (Activities Detail (Must Make a Selection on Formula Allocation Application worksheet under Eligible Activities, §301))
§301(a)(1) The predevelopment, development, acquisition, rehabilitation, and preservation of multifamily, residential live-work, rental housing that is affordable to extremely low-,very low-, low-, or moderate-
income households, including necessary Operating subsidies.
§301(a)(2) The predevelopment, development, acquisition, rehabilitation, and preservation of Affordable rental and ownership housing, including Accessory Dwelling Units (ADUs), that meets the needs of a
growing workforce earning up to 120 percent of AMI, or 150 percent of AMI in high -cost areas. ADUs shall be available for occupancy for a term of no less than 30 days.
§301(a)(3) Matching portions of funds placed into Local or Regional Housing Trust Funds.
§301(a)(4) Matching portions of funds available through the Low- and Moderate-Income Housing Asset Fund pursuant to subdivision (d) of HSC Section 34176.
§301(a)(5) Capitalized Reserves for Services connected to the preservation and creation of new permanent supportive housing.
§301(a)(6) Assisting persons who are experiencing or At risk of homelessness, including, but not limited to, providing rapid rehousing, rental assistance, supportive/case management services that allow
people to obtain and retain housing, operating and capital costs for navigation centers and emergency shelters, and the new construction, rehabilitation, and preservation of permanent and transitional
housing.
§301(a)(7) Accessibility modifications in Lower-income Owner-occupied housing.
§301 a 8 Efforts to ac uire and rehabilitate foreclosed or vacant homes and a artments.
§301(a)(9) Homeownership opportunities, including, but not limited to, down payment assistance.
PLHA Page 1 302(c)(4) Plan
PERMANENT LOCAL HOUSING ALLOCATION PROGRAM PLAN
§301(a)(10) Fiscal incentives made by a county to a city within the county to incentivize approval of one or more affordable housing Projects, or matching funds invested by a county in an affordable housing
development Project in a city within the county, provided that the city has made an equal or greater investment in the Project. The county fiscal incentives shall be in the form of a grant or low-interest loan to
an affordable housing Project. Matching funds investments by both the county and the city also shall be a grant or low-interest deferred loan to the affordable housing Project.
PLHA Page 2 302(c)(4) Plan
City Council Agenda Item Report
Submitted by: Adriana Ramos
Submitting Department: Public Utilities
Meeting Date: December 15, 2021
SUBJECT
Labor and Materials Contract with Nalco Company LLC
Recommendation:
Approve and authorize the City Administrator to execute a Labor and Materials Contract with
Nalco Company LLC, in substantially the same form as submitted, to provide water treatment
chemicals and equipment necessary to sustain reliable operation of the Malburg Generating
Station for a six-month term, in an amount not-to-exceed $200,000.
Background:
On November 16, 2021, City Council adopted Resolution No. 2021-41 approving a Purchase
and Sale Agreement (PSA) with Bicent (California) Malburg LLC (Bicent) for the acquisition of
the Malburg Generating Station (MGS). In order to be able to operate MGS on or after
December 15, 2021, without unnecessary disruptions, Staff is seeking approval of a short-
term contract with Nalco Company LLC (Nalco), the current vendor utilized by Bicent for water
treatment chemicals and related services.
Nalco is an existing critical Bicent vendor that currently provides water treatment chemicals
and services to MGS. Any adverse changes to the water chemistry utilized at MGS can lead to
significant deterioration of vital system components. To avoid any damage to crucial
equipment, and to avoid any operational disruptions, Vernon Public Utilities must leverage the
services of a contractor with the expertise and ability to provide the chemicals and equipment
to produce the exact water chemistry needed at MGS, in accordance with all applicable laws
and regulations. Establishing a short-term agreement with Nalco, for the period of December
15, 2021 through June 30, 2022, will allow sufficient time for staff to conduct its own analysis
to determine how to best meet the needs of MGS operations in the long-term, and work
through the City procurement process to secure a vendor with the appropriate competency to
maintain proper water chemistry at the power plant.
The proposed Labor and Materials Contract has been reviewed and approved as to form by
the City Attorney’s Office.
Fiscal Impact:
The estimated cost of a six-month term contract is $200,000. Funds for this contract were not
included in the FY 2021-22 budget, however, this cost will become part of the adopted budget
with the acquisition of MGS. Funds for this action will be drawn from Vernon Public Utilities
MGS Division Account No. 055.9190.500230.
Attachments:
1. Labor and Materials Contract with Nalco Company LLC
Page 1 of 17
LABOR AND MATERIALS CONTRACT BETWEEN THE CITY OF VERNON AND NALCO
COMPANY LLC
COVER PAGE
Contractor: Nalco Company LLC
Responsible Principal of Contractor: Scott K. Isherwood, District Manager
Notice Information - Contractor: Nalco Company LLC
1601 W. Diehl Road
Naperville, IL 60563-1198
Attention: Industrial Sector General Counsel
Notice Information - City: City of Vernon
4305 Santa Fe Avenue
Vernon, CA 90058
Attention: Abraham Alemu,
General Manager of Vernon Public Utilities
Telephone: (323) 583-8811 ext. 250
Commencement Date: December 15, 2021
Termination Date: June 30, 2022
Consideration: Total not to exceed $200,000 (includes all
applicable sales tax); and more particularly
described in Exhibit C
Records Retention Period Three (3) years, pursuant to Section 7.3
Page 2 of 17
LABOR AND MATERIALS CONTRACT BETWEEN THE CITY OF VERNON AND NALCO
COMPANY LLC
This Contract is made between the City of Vernon (City), a California charter City and
California municipal corporation, and Nalco Company LLC, a Delaware corporation, with
headquarters located at 1601 W. Diehl Road (Contractor).
The City and Contractor agree as follows:
1.0 Contractor shall furnish all necessary and incidental labor, material, equipment,
transportation and services for water treatment chemicals and equipment during the contract
term, as more fully set forth in the Scope of Work, attached hereto and incorporated herein by
reference as Exhibit “A”.
2.0 All work shall be done in a manner satisfactory to the City’s General Manager of
Vernon Public Utilities (General Manager) acting reasonably, or the General Manager’s
designee, in writing, and shall be of highest quality with respect to the contract specifications.
In the event Contractor fails to perform satisfactorily the City shall advise
Contractor in writing, and Contractor shall have thirty (30) days to cure such failure to
satisfactorily perform. If Contractor fails to so cure its performance within said 30 days, the City
may, at its option, terminate this Contract for default without further liability, other than payment
to Contractor for work performed satisfactorily prior to the date of termination.
3.0 Contractor shall commence work upon the execution of this contract.
4.0 In consideration of satisfactory and timely Performance of requested services
and equipment pursuant to the Schedule set forth in Exhibit “B,” which is attached hereto and
incorporated herein by reference, the City shall pay Contractor as follows:
The bid amounts, according to the requested and accepted price set forth in the
Contractor’s quote, attached hereto and incorporated herein by reference as
Exhibit “C”. The total amount to be paid to Contractor during the term of this
contract shall not exceed two-hundred-thousand Dollars ($200,000.00) without
the prior approval of the City Council and without a written amendment of this
contract.
5.0 GENERAL TERMS AND CONDITIONS.
5.1 INDEPENDENT CONTRACTOR.
5.1.1 It is understood that in the performance of the services herein
provided for, Contractor shall be, and is, an independent contractor, and is not an agent or
employee of City and shall furnish such services in its own manner and method except as
required by this Contract. Further, Contractor has and shall retain the right to exercise full
control over the employment, direction, compensation and discharge of all persons employed by
Contractor in the performance of the services hereunder. Contractor shall be solely responsible
for, and shall indemnify, defend and save City harmless from all matters relating to the payment
Page 3 of 17
of its employees, including compliance with social security, withholding and all other wages,
salaries, benefits, taxes, exactions, and regulations of any nature whatsoever.
5.1.2 Contractor acknowledges that Contractor and any subcontractors,
agents or employees employed by Contractor shall not, under any circumstances, be
considered employees of the City, and that they shall not be entitled to any of the benefits or
rights afforded employees of City, including, but not limited to, sick leave, vacation leave,
holiday pay, Public Employees Retirement System benefits, or health, life, dental, long-term
disability or workers' compensation insurance benefits.
5.2 CONTRACTOR NOT AGENT. Except as the City may authorize in
writing, Contractor and its subcontractors, if any, shall have no authority, express or implied, to
act on behalf of or bind the City in any capacity whatsoever as agents or otherwise.
5.3 OWNERSHIP OF WORK. All reports, drawings, plans, specifications,
computer tapes, floppy disks and printouts, studies, memoranda, computation sheets and other
documents prepared by Contractor in furtherance of the work exclusively for the City shall be
the sole property of City and shall be delivered to City whenever requested. Contractor shall
keep such documents and materials on file and available for audit by the City for at least three
(3) years after completion or earlier termination of this Contract. Contractor may make duplicate
copies of such materials and documents for its own files or for such other purposes as may be
authorized in writing by the City.
5.4 CORRECTION OF WORK. Contractor shall promptly correct any
defective, inaccurate or incomplete tasks, deliverables, goods, services and other work, without
additional cost to the City. The performance or acceptance of services furnished by Contractor
shall not relieve the Contractor from the obligation to correct subsequently discovered defects,
inaccuracy or incompleteness.
5.5 WAIVER. The City's waiver of any term, condition, breach or default of
this Contract 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.
5.6 SUCCESSORS. This Contract shall inure to the benefit of, and shall be
binding upon, the parties hereto and their respective heirs, successors and/or assigns.
5.7 NO ASSIGNMENT. Contractor shall not assign or transfer this Contract
or any rights hereunder without the prior written consent of the City and approval by the City
Attorney, which may be withheld in the City's sole discretion; provided however, that Contractor
may assign this Contract to a wholly-owned direct or indirect subsidiary of Ecolab, Inc. (its
publicly-traded parent corporation), upon written notice to City. Any unauthorized assignment or
transfer shall be null and void and shall constitute a material breach by the Contractor of its
obligations under this Contract. No assignment shall release the original parties or otherwise
constitute a novation.
5.8 COMPLIANCE WITH LAWS. Contractor 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.
Page 4 of 17
5.9 ATTORNEY'S FEES. If any action at law or in equity is brought to
enforce or interpret the terms of this Contract, the prevailing party shall be entitled to reasonable
attorney's fees, costs and necessary disbursements in addition to any other relief to which such
party may be entitled.
6.0 INTERPRETATION.
6.1 APPLICABLE LAW. This Contract, and the rights and duties of the
parties hereunder (both procedural and substantive), shall be governed by and construed
according to the laws of the State of California, without regards to its conflict of laws rules.
6.2 ENTIRE CONTRACT. This Contract, including any Exhibits attached
hereto, constitutes the entire contract 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).
6.3 WRITTEN AMENDMENT. This Contract may only be changed by written
amendment executed by Contractor and the City Administrator or other authorized
representative of the City, subject to any requisite authorization by the City Council. Any oral
representations or modifications concerning this Contract shall be of no force or effect.
6.4 SEVERABILITY. If any provision in this Contract is held by any court of
competent jurisdiction to be invalid, illegal, void, or unenforceable, such portion shall be deemed
severed from this Contract, 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 Contract.
6.5 ORDER OF PRECEDENCE. In case of conflict between the terms of this
Contract and the terms contained in any document attached as an Exhibit or otherwise
incorporated by reference, the terms of this Contract shall strictly prevail.
6.6 CHOICE OF FORUM. The parties hereby agree that this Contract is to
be enforced in accordance with the laws of the State of California, is entered into in the City of
Vernon and that all claims or controversies arising out of or related to performance under this
Contract 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.
6.7 TIME OF ESSENCE. Time is strictly of the essence of this Contract and
each and every covenant, term and provision hereof.
6.8 AUTHORITY OF CONTRACTOR. The Contractor hereby represents and
warrants to the City that the Contractor has the right, power, legal capacity and authority to
enter into and perform its obligations under this Contract, and its execution of this Contract has
been duly authorized.
6.9 ARBITRATION OF DISPUTES. Any dispute for under $25,000 arising
out of or relating to the negotiation, construction, performance, non-performance, breach or any
other aspect of this Contract, shall be settled by binding arbitration in accordance with the
Commercial Rules of the American Arbitration Association at Los Angeles, California and
judgment upon the award rendered by the Arbitrators may be entered in any court having
Page 5 of 17
jurisdiction thereof. This clause shall not preclude the Parties from seeking provisional
remedies in aid of arbitration from a court of appropriate jurisdiction. The City does not waive its
right to object to the timeliness or sufficiency of any claim filed or required to be filed against the
City and reserves the right to conduct full discovery.
6.10 INDEMNITY.
6.10.1 Contractor agrees to indemnify, hold harmless and defend, to the
maximum extent permitted by law, the City, its City Council and
each member thereof, and its officers, employees, commission
members and representatives (“the Indemnitees”), from any and
all liability, loss, suits, claims, damages, costs, judgments and
expenses (including attorney's fees and costs of litigation) for third
party claims against the Indemnitees: (a) arising out of any
personal injury, death or tangible property damage to the extent
caused by any negligent or wrongful acts, errors or omissions
(including, without limitation, professional negligence) of
Contractor, its employees, representatives, subcontractors, or
agents in connection with the performance of this Contract; or (b)
patent, copyright, trade secret or trademark infringement related to
the Products or Services to the extent used in accordance with
Contractor’s instructions.
6.11 RELEASE. Contractor agrees to release and covenants not to sue the
City, its City Council and each member thereof, and its officers, employees, commission
members and representatives for any damage or injury (including death) to itself, its officers,
employees, agents and independent contractors damaged or claiming to be damaged from any
performance under this Contract.
6.12 INSURANCE. Contractor shall, at its own expense, procure and maintain
policies of insurance of the types and in the amounts set forth below, for the duration of the
Contract, including any extensions thereto. The policies shall state that they afford primary
coverage to the extent of the liabilities assumed by Contractor in this Contract.
6.12.1 Automobile Liability with minimum limits of at least $1,000,000 combined
single limit including owned, hired, and non-owned liability coverage.
(1) To the extent of the liabilities assumed by Contractor in this Contract,
Contractor agrees to subrogate automobile liability coverage.
6.12.2 General Liability with minimum limits of at least $1,000,000 per
occurrence and $2,000,000 in aggregate written on an Insurance
Services Office (ISO) Comprehensive General Liability "occurrence" form
or its equivalent for coverage on an occurrence basis.
Premises/Operations and Personal Injury coverage is required. The City
of Vernon, its directors, commissioners, officers, employees, agents and
volunteers must be endorsed on the policy as additional insureds as
respects the liabilities assumed by Contractor in this Contract.
Page 6 of 17
A. If Contractor employs other contractors as part of the services
rendered, Contractor's Protective Coverage is required.
Contractor may include all subcontractors as insureds under
its own policy or shall furnish separate insurance for each
subcontractor, meeting the requirements set forth herein.
B. Blanket Contractual Coverage.
A. Products/Completed Operations coverage.
B. Contractor agrees to subrogate General Liability policy to the
extent of the liabilities assumed by Contractor in this Contract.
6.12.3 Errors and Omissions coverage in a sum of at least $1,000,000, where
such risk is applicable. Applicable aggregates must be identified and
claims history provided to determine amounts remaining under the
aggregate. Contractor shall maintain such coverage for at least one (1)
year after the termination of this Contract.
6.12.4 Contractor shall comply with the applicable sections of the California
Labor Code concerning workers' compensation for injuries on the job.
Compliance is accomplished in one of the following manners:
A. Provide copy of permissive self-insurance certificate approved
by the State of California; or
B. Secure and maintain in force a policy of workers'
compensation insurance with statutory limits and Employer's
Liability Insurance with a minimal limit of $1,000,000 per
accident. The policy shall be endorsed to waive all rights of
subrogation against City, its directors, commissioners, officers,
employees, and volunteers for losses arising from
performance of this Contract; or
C. Provide a "waiver" form certifying that no employees subject to
the Labor Code's Workers' Compensation provision will be
used in performance of this Contract.
6.12.5 Each insurance policy included in this clause shall be endorsed to state
that coverage shall not be cancelled except after thirty (30) days' prior
written notice to City.
6.12.6 Insurance shall be placed with insurers reasonably acceptable to the City.
6.12.7 Prior to commencement of performance, Contractor shall furnish City with
a certificate of insurance for each policy. City may require complete
copies of any or all policies at any time.
6.12.8 Failure to maintain required insurance at all times shall constitute a
default and material breach. In such event, Contractor shall immediately
Page 7 of 17
notify City and cease all performance under this Contract until further
directed by the City. In the absence of satisfactory insurance coverage,
City may, at its option: (a) procure insurance with collection rights for
premiums, attorney's fees and costs against Contractor by way of set-off
or recoupment from sums due Contractor, at City's option; (b)
immediately terminate this Contract; or (c) self insure the risk, with all
damages and costs incurred, by judgment, settlement or otherwise,
including attorney's fees and costs, being collectible from Contractor, by
way of set-off or recoupment from any sums due Contractor.
6.13 NOTICES. Any notice or demand to be given by one party to the other
shall be given in writing and by personal delivery or prepaid first-class, registered or certified
mail, addressed as follows. Notice simply to the City of Vernon or any other City department is
not adequate notice.
If to the City: City of Vernon
Attn: Abraham Alemu, General Manager of Vernon Public Utilities
4305 Santa Fe Avenue
Vernon, CA 90058
If to the Contractor: Nalco Water Company
Attn: Industrial Sector General Counsel
1601 W. Diehl Road
Naperville, IL 60563-1198
Any such notice shall be deemed to have been given upon delivery, if personally
delivered, or, if mailed, upon receipt or upon expiration of three (3) business days from the date
of posting, whichever is earlier. Either party may change the address at which it desires to
receive notice upon giving written notice of such request to the other party.
6.14 TERMINATION FOR CONVENIENCE (Without Cause). City may
terminate this Contract in whole or in part at any time, for any cause or without cause, upon
fifteen (15) calendar days' written notice to Contractor. If the Contract is thus terminated by City
for reasons other than Contractor's failure to perform its obligations, City shall pay Contractor a
prorated amount based on the services satisfactorily completed and accepted prior to the
effective date of termination. Such payment shall be Contractor's exclusive remedy for
termination without cause.
6.15 DEFAULT. In the event either party materially defaults in its obligations
hereunder, the other party may declare a default and terminate this Contract by written notice to
the defaulting party. The notice shall specify the basis for the default. The Contract shall
terminate unless such default is cured before the effective date of termination stated in such
notice, which date shall be no sooner than thirty (30) days after the date of the notice.
Termination for cause shall relieve the terminating party of further liability
or responsibility under this Contract, including the payment of money, except for payment for
services satisfactorily and timely performed prior to the service of the notice of termination, and
except for reimbursement of (1) any payments made by the City for service not subsequently
Page 8 of 17
performed in a timely and satisfactory manner, and (2) costs incurred by the City in obtaining
substitute performance.
6.16 ASSIGNMENT OF ANTITRUST CAUSES OF ACTION. Contractor
hereby agrees to assign to the City all rights, title and interest in and to all causes of action it
may have under Section 4 of the Clayton Act (15 U.S.C. § 15) or under Chapter 2 of the
Cartwright Act (commencing with Section 16700) or part 2 of Division 7 of the California
Business and Professions Code, or any similar or successor provisions of Federal or State law,
arising from purchases of goods, services or materials pursuant to this Contract or any
subcontract. This assignment shall be made and become effective at the time the City tenders
final payment to the Contractor, without further acknowledgment by the parties.
7.0 ADDITIONAL ASSURANCES
7.1 EQUAL EMPLOYMENT OPPORTUNITY PRACTICES. Contractor
certifies and represents that, during the performance of this Contract, the Contractor 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. Contractor further certifies that it will not maintain any
segregated facilities. Contractor further agrees to comply with The Equal Employment
Opportunity Practices provisions as set forth in Exhibit “D”.
7.2 VERNON BUSINESS LICENSE. Contractor shall obtain, and pay any
and all costs associated therewith, any Vernon Business License which may be required by the
Vernon Municipal Code.
7.3 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 Contractor's records to the extent the City deems necessary to insure
it is receiving all money to which it is entitled under the Contract and/or is paying only the
amounts to which Contractor is properly entitled under the Contract or for other purposes
relating to the Contract.
The Contractor shall maintain and preserve all such records for a period
of at least 3 years after termination of the Contract.
The Contractor shall maintain all such records in the City of Vernon. If
not, the Contractor shall, upon request, promptly deliver the records to the City of Vernon or
reimburse the City for all reasonable and extra costs incurred in conducting the audit at a
location other than the City of Vernon, including, but not limited to, such additional (out of the
City) expenses for personnel, salaries, private auditors, travel, lodging, meals and overhead.
7.4 CONFLICT. Contractor hereby represents, warrants and certifies that no
member, officer or employee of the Contractor is a director, officer or employee of the City of
Vernon, or a member of any of its boards, commissions or committees, except to the extent
permitted by law.
Page 9 of 17
7.5 ENFORCEMENT OF WAGE AND HOUR LAWS. Eight hours labor
constitutes a legal day's work with respect to hourly workers. The Contractor, or subcontractor,
if any, shall forfeit twenty-five dollars ($25) for each worker employed in the execution of this
Contract by the respective Contractor or subcontractor for each calendar day during which the
hourly worker is required or permitted to work more than 8 hours in any one calendar day and
40 hours in any one calendar week in violation of the provisions of Sections 1810 through 1815
of the California Labor Code as a penalty paid to the City; provided, however, work performed
by hourly employees of contractors in excess of 8 hours per day, and 40 hours during any one
week, shall be permitted upon compensation for all hours worked in excess of 8 hours per day
at not less than 1½ times the basic rate of pay.
7.6 PAYMENT. Payment terms are 30 days from the date of invoice.
7.7 LEGIONELLA, WARRANTY AND CONSEQUENTIAL DAMAGES
DISCLAIMER. The goods and services do not cover, and Contractor makes no warranties with
respect to, water system biohazards from waterborne pathogens, including but not limited to
Legionella bacteria. Contractor shall not be liable for any failure caused by City’s failure to
follow Contractor’s written instructions. CONTRACTOR DISCLAIMS ALL OTHER
WARRANTIES, EXPRESS OR IMPLIED, AND DISCLAIMS THE IMPLIED WARRANTIES OF
MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. NOTWITHSTANDING
ANYTHING TO THE CONTRARY CONTAINED HEREIN OR OTHERWISE, IN NO EVENT
SHALL EITHER PARTY BE LIABLE FOR ANY SPECIAL, CONSEQUENTIAL OR INDIRECT
DAMAGES.
7.8 CONTRACTOR-OWNED EQUIPMENT TERMS. The additional terms and
conditions applicable to Contractor-owned equipment provided to City on a rental or usage
basis and the additional terms applicable to Contractor’s digital programs are set forth in
Exhibit F.
[Signatures Begin on Next Page].
Page 10 of 17
IN WITNESS WHEREOF, the Parties have executed this Contract as of the
Commencement Date stated on the cover page.
City of Vernon, a California charter City
and California municipal corporation
By:____________________________
Carlos Fandino, City Administrator
Nalco Company LLC, a Delaware limited
liability Company
By:
Name:
Title:
ATTEST:
_______________________________
Lisa Pope, City Clerk
APPROVED AS TO FORM:
_______________________________
Zaynah N. Moussa,
Interim City Attorney
Page 11 of 17
EXHIBIT A
SCOPE OF WORK
November 23, 2021
Scope of Work and Pricing
Nalco Company
Customer Name: City of Vernon (Malburg Generating Station)
Address: 4963 Soto St
Vernon, CA
Nalco will provide a Program consisting of the services, products and equipment listed below for the
System(s) described. This Program is designed to meet mutually agreed upon objectives based upon
maintenance of key operating conditions and control parameters.
Term of Agreement
Effective: Start: December 15, 2021 End: June 30, 2022
Chemical Program Description
Nalco will provide chemical treatment and services for the following systems:
Cooling Tower Water System:
Consulting Service Visits – 2 times per month by Nalco Engineer Representative
3D Trasar Technology & Controller for Cooling Tower Water System
Nalco will provide the following treatment chemicals and services:
Cooling Towers
Cooling Tower: 3DT487 (Scale and Corrosion Inhibitor)
Sodium Hypochlorite (Oxidizing Biocide)
Sulfuric Acid (pH Adjustment)
Nalco 90005 (Low Foam Biocide)
Nalco 73551 (Deposit Penetrant)
Steam System:
Consulting Service Visits – 2 per month by Nalco Engineer Representative
Steam: BT-4000 (Phosphate and Alkalinity)
Nalco 356 (Amine Steam Treatment)
November 23, 2021
RO System: Nalco 2581 (Alkalinity and pH Control)
PC-191T (RO Anti-Scalant)
7408 (Chlorine Scavenger Sodium Bisulfite)
Sodium Hypochlorite (Oxidizing Biocide)
Chemical Feed and Control Equipment
Nalco will service the following Nalco Equipment:
Nalco 3D Trasar for Cooling Water Controller – 1
Nalco PortaFeeds for hands free delivery – remains the property of Nalco
Nalco Water Management Consulting Services:
- Service visits will be documented and communicated with a computer generated Personal
Service Report
- Implementation of Nalco 6 Service Standards
- Inspections of opened equipment with pictures and reports
- Quarterly Legionella Testing
- Use Nalco 360 and MyNalco customer site
Services – The following services are available upon request outside of the normal annual agreement.
- Annual Disinfection
November 23, 2021
Nalco Company agrees to provide the chemicals, equipment, and services listed above for the specified
systems based on the system load and water quality at the Ship and Bill prices in the table below
Product Application Price ($/lb)
Nalco BT-4000 Boiler Phosphate and Alkalinity $5.30
Nalco 356 Steam Treatment $11.93
Nalco 90005 Tower Low Foam Microbiocide $11.38
Sulfuric Acid Cooling Tower pH control $0.39
Sodium Hypochlorite Tower Oxidizing Biocide $0.34
Nalco 4DT487 Tower Scale and Corrosion Inhibitor $3.65
Nalco 73551 Deposit Penetrant $4.87
Nalco 7408 RO Chlorine Scavenger $4.64
Nalco 2581 RO Alkalinity and pH Control $4.84
PC-191T RO Anti-Scalant $6.46
Nalco 7468 Tower Anti-Foam $2.34
Estimated Total Spend for the 6 month period is estimated to be less than $200,000
TERMS:
- Standard payment terms are net 30 days of invoice date.
- Prices exclude any applicable sales, use, excise, VAT, export and import taxes, and similar fees.
Scott K. Isherwood
DISTRICT MANAGER, HEAVY INDUSTRIAL WATER
Nalco Water | An Ecolab Company 1601 W. DIEHL ROAD, NAPERVILLE, IL 60563
T 509 431 5062 M 509 431 5062 E skisherwood@ecolab.com
Page 12 of 17
EXHIBIT B
SCHEDULE
November 23, 2021
Scope of Work and Pricing
Nalco Company
Customer Name: City of Vernon (Malburg Generating Station)
Address: 4963 Soto St
Vernon, CA
Nalco will provide a Program consisting of the services, products and equipment listed below for the
System(s) described. This Program is designed to meet mutually agreed upon objectives based upon
maintenance of key operating conditions and control parameters.
Term of Agreement
Effective: Start: December 15, 2021 End: June 30, 2022
Chemical Program Description
Nalco will provide chemical treatment and services for the following systems:
Cooling Tower Water System:
Consulting Service Visits – 2 times per month by Nalco Engineer Representative
3D Trasar Technology & Controller for Cooling Tower Water System
Nalco will provide the following treatment chemicals and services:
Cooling Towers
Cooling Tower: 3DT487 (Scale and Corrosion Inhibitor)
Sodium Hypochlorite (Oxidizing Biocide)
Sulfuric Acid (pH Adjustment)
Nalco 90005 (Low Foam Biocide)
Nalco 73551 (Deposit Penetrant)
Steam System:
Consulting Service Visits – 2 per month by Nalco Engineer Representative
Steam: BT-4000 (Phosphate and Alkalinity)
Nalco 356 (Amine Steam Treatment)
November 23, 2021
RO System: Nalco 2581 (Alkalinity and pH Control)
PC-191T (RO Anti-Scalant)
7408 (Chlorine Scavenger Sodium Bisulfite)
Sodium Hypochlorite (Oxidizing Biocide)
Chemical Feed and Control Equipment
Nalco will service the following Nalco Equipment:
Nalco 3D Trasar for Cooling Water Controller – 1
Nalco PortaFeeds for hands free delivery – remains the property of Nalco
Nalco Water Management Consulting Services:
- Service visits will be documented and communicated with a computer generated Personal
Service Report
- Implementation of Nalco 6 Service Standards
- Inspections of opened equipment with pictures and reports
- Quarterly Legionella Testing
- Use Nalco 360 and MyNalco customer site
Services – The following services are available upon request outside of the normal annual agreement.
- Annual Disinfection
Page 13 of 17
EXHIBIT C
QUOTE
November 23, 2021
Nalco Company agrees to provide the chemicals, equipment, and services listed above for the specified
systems based on the system load and water quality at the Ship and Bill prices in the table below
Product Application Price ($/lb)
Nalco BT-4000 Boiler Phosphate and Alkalinity $5.30
Nalco 356 Steam Treatment $11.93
Nalco 90005 Tower Low Foam Microbiocide $11.38
Sulfuric Acid Cooling Tower pH control $0.39
Sodium Hypochlorite Tower Oxidizing Biocide $0.34
Nalco 4DT487 Tower Scale and Corrosion Inhibitor $3.65
Nalco 73551 Deposit Penetrant $4.87
Nalco 7408 RO Chlorine Scavenger $4.64
Nalco 2581 RO Alkalinity and pH Control $4.84
PC-191T RO Anti-Scalant $6.46
Nalco 7468 Tower Anti-Foam $2.34
Estimated Total Spend for the 6 month period is estimated to be less than $200,000
TERMS:
- Standard payment terms are net 30 days of invoice date.
- Prices exclude any applicable sales, use, excise, VAT, export and import taxes, and similar fees.
Scott K. Isherwood
DISTRICT MANAGER, HEAVY INDUSTRIAL WATER
Nalco Water | An Ecolab Company 1601 W. DIEHL ROAD, NAPERVILLE, IL 60563
T 509 431 5062 M 509 431 5062 E skisherwood@ecolab.com
Page 14 of 17
EXHIBIT D
EQUAL EMPLOYMENT OPPORTUNITY
PRACTICES PROVISIONS
A. Contractor certifies and represents that, during the performance of this Contract, 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 Contract, discriminated against applicants or employees because of
their membership in a protected class.
D. Contractor agrees to provide the City with access to, and, if requested to do so by City,
through its awarding authority, provide copies of all of its records pertaining or relating to its
employment practices, except to the extent such records or portions of such records are
confidential or privileged under state or federal law.
E. Nothing contained in this Contract shall be construed in any manner as to require or permit
any act which is prohibited by law.
Page 15 of 17
EXHIBIT E
PRICE INCREASE
In addition to any periodic price adjustment provided for in this Agreement Contractor may
increase the prices for the Products or Services if, at any time during the term of this
Agreement, an Extraordinary Inflationary Disruption occurs. Extraordinary Inflationary Disruption
is defined as an increase in delivered costs beyond the control of Contractor of at least seven
(7%) percent and sustained over a three-month period. In case of such an Extraordinary
Inflationary Disruption, Contractor may increase the price of the Products up to the full amount
of the percent increase in its costs (raw materials, freight, labor or energy) by giving City at least
thirty (30) days written notice. The baseline for determining such increase shall be on an
individual product basis. If Contractor’s costs decline back to a baseline level, Contractor is
allowed to maintain product prices at the elevated level for the same period of time Contractor
previously maintained pricing prior to the hardship price increase.
If the charges under the Contract reach 80% of the Total allowed and it is likely the Total will be
exceeded before the end of the Term, City and Contractor will discuss additional funding,
subject to City Council approval. If additional funding is not approved, Contractor will cease
billing and performing once the total is reached.
Page 16 of 17
EXHIBIT F
Contractor-Owned Equipment Terms
For equipment (including Porta-Feed units, 3D TRASAR, OMNI, Purate, and Pareto equipment
and other proprietary equipment of Contractor and any associated computer hardware or
software) furnished to City on a rental or use basis (the “Equipment”), the following terms and
conditions shall also apply.
1. Equipment shall remain the sole personal property of Contractor even though City may
attach Equipment to realty. Contractor may cause such Equipment to be marked to indicate
its ownership, and City agrees to provide reasonable cooperation by executing any financing
statements Contractor files with respect to the Equipment. City shall take no action which is
inconsistent with Contractor’s title to the Equipment, and shall not move, encumber or alter
the Equipment without Contractor’s written authorization. City shall be responsible for any
personal property or use taxes associated with the Equipment.
2. City shall not use the Equipment with any materials or products other than those
recommended or approved by Contractor. The proper functioning of the Equipment is
conditioned upon City operating it in accordance with Contractor’s recommendations.
3. City shall install and provide the utilities necessary for the Equipment, and will provide a
suitable location for the Equipment, including but not limited to shelter, tank pads, spill
protection, foundations, etc., as appropriate. City shall receive, unload, place and remove
Equipment at no cost to Contractor and should be responsible for procuring any necessary
permits or licenses for such actions. With respect to Porta-Feed units, City agrees to
provide access for a standard truck (min. 40 feet end-to-end, 14 feet high) to be driven
safely to an area (e.g. loading dock) in the vicinity of the base tank to offload refill units.
4. City shall not alter the Equipment without Contractor’s written authorization. City assumes
all risk of loss or liability arising from or pertaining to its possession, operation or use of the
Equipment, and shall indemnify, defend and hold Contractor harmless from all losses,
claims, damages and expenses arising from City’s possession and use of the Equipment
except to the extent damage to the Equipment is caused by Contractor’s negligence or
willful misconduct. City shall obtain and maintain for the term of this Contract all risks
property insurance against loss or damage to the Equipment.
5. City shall allow Contractor to subcontract portions of work to be performed under this
Contract with respect to Equipment including but not limited to data-hosting, transmission of
data through internet service providers and use other service providers. Contractor shall
have the right to inspect and service Equipment during normal business hours.
6. Upon termination of this Contract by either Contractor or City, City shall return Equipment to
Contractor at City’s sole expense in the same condition as received, ordinary wear and tear
excepted. In the event Equipment is lost, damaged or destroyed, City shall pay to Contractor
the cost of replacement, or of repair at Contractor’s standard charges then in effect. During the
term of this Contract, the Equipment will remain the exclusive property of Contractor.
7. City shall promptly notify Contractor of any material change in City’s status, including, but not
limited to, change of address, desired Equipment location, close of business.
Page 17 of 17
8. Contractor reserves the right to use non-union labor for supervised, installation, testing and
service of Equipment.
9. City agrees to inform Contractor of any special or unusual safety precautions that should be
taken because of conditions in City’s plant or process.
10. Notwithstanding anything in any Contract or otherwise to the contrary, all data generated or
collected by the Equipment that is transmitted to Contractor (or to a Contractor third-party
provider) is owned by City but City hereby grants to Contractor a perpetual, non-exclusive,
royalty-free license to use that data (and that license will survive the termination or
expiration of this Contract). City agrees to maintain reasonable measures to ensure the
security of its information, computer and internet systems, including data security, and will
hold Contractor and its affiliates harmless from claims relating thereto including, without
limitation, third-party actions in connection therewith, excluding only damages to the extent
caused by Contractor’s willful misconduct or fraud.
City Council Agenda Item Report
Submitted by: Adriana Ramos
Submitting Department: Public Utilities
Meeting Date: December 15, 2021
SUBJECT
Amendment No. 1 to the Services Agreement with Jacobs Engineering Group, Inc., for
Environmental Compliance Support Services
Recommendation:
Approve and authorize the City Administrator to execute Amendment No. 1 to Services
Agreement with Jacobs Engineering Group, Inc. (Jacobs), in substantially the same form as
submitted, to amend the scope of work for as-needed environmental compliance support
services and increase the agreement value by an additional $404,909, for a grand total not-to-
exceed amount of $744,822.
Background:
On June 16, 2020, City Council approved an agreement with Jacobs (Contract No. LP-0543)
to provide environmental support services that address air quality, potable and recycled water,
industrial wastewater, hazardous materials, and greenhouse gas in relation to Vernon Public
Utilities (VPU) operations. As the City moves forward with the re-purchase of the Malburg
Generating Station (MGS), following the City Council's approval of the Purchase and Sale
Agreement on November 16, 2021, VPU will require additional environmental compliance
support from Jacobs: 1) to identify the MGS’s exact environmental compliance needs; and 2)
to support ongoing compliance.
Accordingly, VPU is requesting to amend the agreement with Jacobs (Contract No. LP-0543)
to revise the scope of work to include the added necessary tasks and costs. The attached
change order proposal from Jacobs presents a brief discussion of Jacobs’ technical approach,
deliverables, and budget. MGS currently receives environmental compliance support from a
Bicent (California) Malburg LLC employee, however that employee is not transitioning over to
the City with the acquisition. Since that position will not be filled, Jacobs can assist with the
environmental compliance support at MGS.
For reference, the City currently has a separate agreement (Contract LP-0643) with this
vendor for environmental compliance support for identification and transfer of MGS’ existing
environmental permits related to the purchase of MGS, which is separate and distinct from
this agreement and proposed amendment. Revising the scope of work in Contract LP-0543 is
more consistent with the work that is needed at MGS for ongoing support in environmental
regulatory compliance whereas Contract LP-0643 is limited to the transfer of environmental
permit ownership.
Staff is seeking approval of Amendment No. 1, considering the urgent need for environmental
compliance support related to the City’s acquisition of MGS. The proposed amendment has
been reviewed and approved as to form by the City Attorney’s Office.
Fiscal Impact:
Approval of this action would require an appropriation of $404,909 for this Amendment,
increasing the total contract value not-to-exceed $744,822. This appropriation will become part
of the adopted budget of the plant acquisition in the Public Utilities MGS Division Account No.
055.9190.595200.
Attachments:
1. Amendment No. 1 - Jacobs Engineering Group, Inc.
- 1 -
AMENDMENT NO. 1 TO THE SERVICES AGREEMENT BETWEEN THE CITY OF
VERNON AND JACOBS ENGINEERING GROUP INC. FOR ENVIRONMENTAL
COMPLIANCE SUPPORT SERVICES
This Amendment (Amendment No. 1) to that certain Agreement for environmental
compliance support services dated July 1, 2020, (Agreement), is made as of December 15, 2021,
by and between the City of Vernon, a California charter city and municipal corporation (City),
and Jacobs Engineering Group Inc. (Contractor), a Delaware corporation.
WHEREAS, the City and Contractor are parties to a written Agreement dated July 1,
2020, under which Contractor provides environmental compliance support services to Vernon
Public Utilities; and
WHEREAS, the City and Contractor desire to amend the Agreement to amend the scope
of work as described in the proposal by Contractor dated December 9, 2021, is attached hereto as
Exhibit A.
WHEREAS, in light of additional services needed, the City and Contractor desire to
amend the Agreement to increase the total not to exceed amount by an additional $404,909.
NOW, THEREFORE, the parties to this Amendment No. 1 agree as follows:
1. Effective as of December 15, 2021, the scope of work is hereby amended as
described in the proposal by Contractor attached hereto as Exhibit A.
2. Effective as of December 15, 2021, the total amount not to exceed for the period
of July 1, 2020 through June 30, 2023 shall not exceed a total amount of $744,822.
3. Except as expressly modified by this Amendment No. 1, all provisions of the
Agreement shall remain in full force and effect.
4. The provisions of this Amendment No. 1 shall constitute the entire agreement of
the parties with respect to the subject matter included in this Amendment No. 1 and shall
supersede any other agreement, understanding, or arrangement, whether written or oral, between
the parties with respect to the subject matter of this Amendment No. 1, with the exception of
joint representation and/or conflict waiver agreements related to matters handled by Associate
Counsel.
5. The person or persons executing this Amendment No. 1 on behalf of each of the
parties warrants and represents that he or she has the authority to execute this Amendment No. 1
on behalf of that party and has the authority to bind that party to the performance of its
obligations hereunder.
IN WITNESS WHEREOF, the parties have signed this Amendment No. 1 as of the date
stated in the introductory clause.
[SIGNATURES FOLLOW ON NEXT PAGE]
- 2 -
CITY OF VERNON, a California charter city
and municipal corporation
By: _____________________________
Carlos Fandino, City Administrator
Jacobs Engineering Group Inc., a Delaware
corporation
By:
Name:
Title:
ATTEST:
__________________________________
Lisa Pope, City Clerk
By:
Name:
Title:
APPROVED AS TO FORM:
__________________________________
Zaynah N. Moussa,
Interim City Attorney
1737 N First Street
Suite 300
San Jose, CA 95112
702.354.2648
www.jacobs.com
PPS1208211419LAC
December 9, 2021
Lisa Umeda
Utilities Compliance Administrator | Safety & Regulations
Vernon Public Utilities
4305 Santa Fe Avenue
Vernon, CA 90058
Subject: Proposal for an Amendment to the Services Agreement Between the City of Vernon and Jacobs
Engineering Group Inc. for Environmental Compliance Support Services
Dear Ms. Umeda:
Jacobs Engineering Group Inc. (Jacobs) is pleased to present this proposal to amend the existing Services
Agreement Between the City of Vernon and Jacobs for Environmental Compliance Support Services
(Contract No. LP-0543). This amendment is to add a task to support the City of Vernon’s purchase of the
Malburg Generating Station (MGS). This task would include support for the transition of environmental
compliance from the site’s existing consultant (Heorot) to the Jacobs team as well as ongoing
environmental compliance support for the remaining duration of the contract. Below is a brief outline of
the scope of services and associated level of effort to support these compliance activities.
Scope of Services
The City of Vernon, Vernon Public Utilities (VPU) will have possession of MGS beginning on
December 15, 2021. This proposal is for Jacobs to provide Environmental Compliance Support to the VPU
for MGS’ operations from January 2022 through June 2023. While Jacobs has supported VPU with
identification and transfer of MGS’ existing environmental permits, the site’s exact environmental
compliance needs will be evaluated during the first quarter of 2022. Therefore, this proposal is based on
the information provided by VPU and Heorot employees on December 2, 2021 and is proposed as a
time-and-materials contract with a not-to-exceed value. The scope includes two main efforts: the
transition period and ongoing environmental compliance.
Transition Period
During the first quarter of 2022, Jacobs anticipates that VPU will need additional support to facilitate
continued implementation of MGS’ environmental compliance programs. It is assumed that staff currently
responsible for day-to-day operations at MGS will continue to conduct these day-to-day compliance
activities, now with oversight and support from the Jacobs team. During the transition phase, Jacobs has
planned two onsite mobilizations. Jacobs assumes there will be one initial onsite transition with existing
Heorot staff. Up to three Jacobs staff may participate in this initial transition, which is expected to last up
to two days; if needed, one Jacobs staff will remain onsite for up to one additional day. During the first
quarter of 2022, in order to effectively manage the site’s environmental compliance activities, Jacobs staff
will again plan to have two staff onsite for up to one week each, with the Jacobs Project Manager being
present for one day during the first of those week-long visits. This initial onsite presence will enable the
Jacobs team to integrate with VPU staff, transition, and, as needed, modify established working
procedures.
Exhibit A
Lisa Umeda Page 2 of 5
PPS1208211419LAC
During this transition period, Jacobs assumes that daily support will be required to effectively implement
the existing data gathering, quality control and assurance, reporting, and notification procedures. These
procedures are predominately associated with the Continuous Emissions Monitoring System (CEMS) and
reporting required by the South Coast Air Quality Management District (SCAQMD). As a part of this
transition period, Jacobs will update and/or prepare written instructions that outline the procedures
transitioned.
Jacobs has been supporting VPU with the initial transfer of ownership for many of MGS’ existing
environmental permits. Jacobs will use the knowledge and permit applicability determinations completed
during this pre-sale transition, along with MGS’ existing compliance calendar, to develop an integrated
MGS/VPU compliance calendar in the first quarter of 2022. As a part of the compliance calendar,
coordination with external contractors and regulatory agencies may be required. It is assumed that Jacobs
will coordinate scheduling and development of appropriate technical protocols with the external
contractors and agencies previously engaged by Heorot, and that VPU will contract directly with required
contractors/suppliers and pay permit fees, as required.
Assumptions
Initial Heorot Transition Meeting: Two days, supported by Jacobs Staff: (1) Senior Compliance,
(1) Project Manager, and (1) CEMS expert. CEMS expert to remain onsite for up to three (3) days total.
VPU and Jacobs Transition: Two Jacobs technical staff onsite for one week each, with Jacobs Project
Manager onsite for one day during the first of the week-long visits.
VPU will provide all technical resources to enable Jacobs’ staff to remotely connect and access data on
the existing Data Acquisition System (DAS), servers, and other data collection systems that are used
by MGS personnel for environmental reporting.
Deliverables
Updated data transfer and quality control procedures in the form of Standard Job Instructions. These
procedures are considered living documents and will be modified as required to stay accurate with the
work procedures used onsite. (One – Working File, provided electronically)
Integrated MGS/VPU Compliance Calendar (Draft and Final, provided electronically)
Ongoing Environmental Compliance
MGS’ operations are governed by several permitting agencies. Specifically, MGS has an air permit issued
by the SCAQMD, an industrial wastewater discharge permit administered by the Sanitation Districts of
Los Angeles County (LACSD), and has coverage under the State’s General Permit for Storm Water
Discharges Associated with Industrial Activities administered by the Los Angeles Regional Water Quality
Control Board (LARWQCB). As the new owner/operator of MGS, VPU will be responsible for these permits
as they regulate industrial activities occurring at the facility. Other agencies requiring reporting and/or
permits for environmental issues include, but are not limited to, the California Energy Commission (CEC),
California Air Resources Board (CARB), the U.S. Environmental Protection Agency (EPA), the California
EPA, the California Department of Toxic Substances Control (DTSC), the City of Vernon Health and
Environmental Control Department (HECD), the California Department of Industrial Relations (DIR), and
the U.S. Energy Information Administration (EIA).
Environmental Compliance Reporting and Permit Renewals
Jacobs will work with VPU to facilitate the ongoing, periodic, and annual reporting to the environmental
agencies that regulate MGS’ operations. It is assumed that MGS’ historical reports, historical data sources,
and existing reporting procedures will be provided by VPU. Jacobs staff will implement their own quality
control and assurance procedures based on information gathered during the transition period. It is
assumed that Jacobs will be responsible for preparing technical reports and associated documentation,
but that VPU will be responsible for submitting the reports and providing access to all online reporting
systems, as required. To facilitate ongoing reporting, Jacobs assumes that most of the reporting and data
collection will be done remotely, except for as noted below.
Lisa Umeda Page 3 of 5
PPS1208211419LAC
In addition to periodic reporting, many permits require annual renewals. As required and established in the
compliance calendar developed during the transition period, Jacobs will work with VPU to prepare the
permit renewal packages for agency submittal. VPU will be responsible for paying any agency fees
associated with permitting activities.
On-Call Technical Support
As part of this contract amendment, Jacobs will identify one technical resource to provide reliable on-call
and emergency compliance guidance to MGS’ onsite plant operators. This team member will understand
the onsite operations, data collection procedures, and environmental compliance reporting requirements.
Specifically, this person will be able to direct staff when non-routine reporting to the SCAQMD is necessary
for a break-down or other potential emissions exceedance event. This team member will also provide
support for the review of daily emissions reports required to be submitted to the SCAQMD and direct the
team with regards to data replacement and other CEMS/SCAQMD data reporting requirements.
Periodic Onsite Support
Jacobs assumes that some testing and services by external contractors will need to be managed and
supported by the Jacobs team. This may include providing oversight during the Relative Accuracy Test
Audits (RATA) and emissions source testing for the SCAQMD or participation in meetings with regulatory
agencies. While Jacobs proposes to participate in many of the regulatory agency meetings remotely, it is
understood that some may require in-person support. Jacobs assumes that, after the transition period in
the first quarter of 2022, up to two Jacobs staff will be onsite for up to two days at a time once per quarter
to support these activities.
Assumptions
Some activities are currently completed by onsite staff or external contractors; Jacobs assumes these
practices will continue as is. Accordingly, Jacobs will not perform the following activities:
- Sign hazardous waste manifests,
- Perform waste profiling, or
- Collect stormwater samples.
VPU will provide Jacobs with access to all online reporting systems.
Updates to compliance plans will generally be classified as minor and will be to document changes in
ownership and not changes regarding site conditions or operations.
Detailed review of regulatory changes and potential impacts to MGS operations is not included in this
scope. If required, Jacobs will provide a change order to address specific regulatory transitional
changes such as the SCAQMD’s transition away from the Regional Clean Air Incentives Market
(RECLAIM) Program.
VPU will be responsible for paying any agency fees associated with permitting activities.
Non-routine reporting on-call technical support will be available during and after regular business
hours, with one primary and one back-up staff trained and available to respond to time sensitive
issues. It is assumed that after-hours support will be sporadic and infrequent.
Compliance support will be provided remotely and after the transition period, with up to eight (8)
two-day site visits per year.
Deliverables
List of reports to be provided under this task will be developed through coordination with VPU
concurrent with integration of the MGS compliance calendar.
COVID-19 Assumption
In response to the Coronavirus (COVID-19) outbreak, Jacobs has taken appropriate steps to ensure the
health and well-being of our people as well as the continuity of our business operations around the globe.
Jacobs has adopted mitigation strategies and protocols based on recognized world standards and
guidelines, applying appropriate travel restrictions and abiding by state and municipal
proclamations/declarations regarding shelter in place and/or business closures.
Lisa Umeda Page 4 of 5
PPS1208211419LAC
Based on the foregoing, this proposal, including the schedule of activities, is contingent on being able to
appropriately and safely staff and perform (including travel), in light of the Coronavirus outbreak..
Cost and Terms
Jacobs anticipates that, upon review and approval of this scope of services, VPU will issue an amendment
to the Services Agreement Between the City of Vernon and Jacobs Engineering Group Inc. for
Environmental Compliance Support Services (Contract Number LP-0543), effective July 1, 2020, with no
proposed changes to the existing contract terms and conditions. If that is not possible, Jacobs anticipates
that VPU will issue a new service agreement with mutually-agreeable contract terms and conditions that
are comparable to current Contract Number LP-0543. As per our existing contract, this contract
amendment would maintain the period of performance through June 30, 2023.
Jacobs will perform this work on a time-and-materials basis, at a not-to-exceed cost of $404,909 for the
amendment. This cost estimate is based on the scope of services and assumptions described herein and
utilizes the billing and expense rates of our existing contract without exception. Jacobs assumes all permit
fees or other regulatory agency fees will be paid by VPU and has not included them in this cost estimate.
Exhibit 1 provides Jacobs’ budget for this project by task and the associated not-to-exceed amendment
amount. Exhibit 2 includes the combined contract not-to-exceed amount. Note that actual costs to
complete this work can be influenced by a variety of factors outside our control and may be more or less
than estimated here.
Exhibit 1. Proposed Amendment Budget
Task Description Hours Labor Expense Subtotal
Environmental Compliance Support (18-Month Budget, January 2022 through June 2023)
A Transition 740 $117,302 $6,570 $123,872
B Ongoing Compliance 1,750 $273,237 $7,800 $281,037
Amendment Grand Total 2,490 $390,539 $14,370 $404,909
Expenses and travel will be billed at cost, except for automobile mileage, which will be billed at $0.54 per mile, or the
established federal rate for that year.
VPU is responsible for all compliance and regulatory fees. Expenses listed here are for travel only.
Exhibit 2. Total Contract Amount
Contract Subtotal
Environmental Compliance Support (3-Year, Not -to-Exceed Total)
Executed Contract 2020 – 2023 Compliance Support $339,913
MGS Amendment $404,909
Total Revised 3-Year Contract Amount $744,822
Three-year contract accounts for the rate schedule from 2020-2023.
Jacobs will make reasonable efforts to complete the scope of work within the budget and keep VPU
informed of progress toward that end so that the budget or work effort can be adjusted if found necessary.
Jacobs is not obligated to incur costs beyond the indicated budgets, as may be adjusted, nor is VPU
obligated to pay Jacobs beyond these limits. If budget adjustments are deemed necessary, Jacobs will
discuss changes with VPU and will not proceed with work beyond the assumed level of effort until an
approved amendment has been issued by VPU.
Lisa Umeda Page 5 of 5
PPS1208211419LAC
Thank you for this opportunity to provide additional services to VPU. If you have any questions regarding
this proposal, please contact Elyse Engel at (702) 354-2648 or elyse.engel@jacobs.com.
Sincerely,
Jacobs Engineering Group Inc.
Elyse Engel Serena Panzar
Project Manager Manager of Projects
Copies to: Andrea White/Jacobs
Abraham Alemu/VPU