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20150804 Regular City Council Meeting - Packet California Public Records Act ("PRA"): In compliance with the PRA, the documents pertaining to agenda items, including attachments, which are presented to the City Council in open session are available for public inspection. They may be inspected during regular business hours in the Office of the City Clerk at Vernon City Hall, 4305 Santa Fe Avenue; Vernon, California 90058, no appointment necessary, and on the City's website at www.cityofvemon.org. Americans with Disabilities Act ("ADA"): In compliance with the ADA, if you need special assistance to participate in the meeting, please contact the Office of the City Clerk at (323) 583-8811. Notification of at least 48 hours prior to the meeting or time when services are needed will assist the City staff in assuring that reasonable arrangements can be made to provide accessibility to the meeting or service. Agenda City of Vernon of YES Regular City Council Meeting Tuesday, August 4, 2015, 9:00 a.m. Council Chamber 4305 Santa Fe Avenue y Vernon, California W. Michael McCormick, Mayor arVXLY irs9v William J. Davis,Mayor Pro-Tem Luz Martinez, Council Member Melissa Ybarra, Council Member Yvette Woodruff-Perez, Council Member CALL TO ORDER& FLAG SALUTE CHANGES TO THE AGENDA PUBLIC COMMENT - At this time the public is encouraged to address the City Council on any matter that is within the subject matter jurisdiction of the City Council. The public will also be given a chance to comment on matters which are on the posted agenda during City Council deliberation on those specific matters. PRESENTATIONS 1. Senator Ricardo Lara's (33" Senate District) Young Senators Program. 2. California Highway Patrol 1110851" Grand Theft Auto Recovery Award. 3. Badge Presentation Ceremony for new Fire Engineer,Jason Rosa. 4. Financial update for Fiscal Year ending June 30, 2015. Regular City Council Meeting Agenda August 4, 2015 CONSENT CALENDAR - All matters listed on the Consent Calendar are to be approved with one motion. Items may be removed from the Consent Calendar by any member of the Council. Those items removed will be considered immediately after the Consent Calendar. Claims Against the City—Received and Filed 5. None Warrant Registers 6. Approval of City Warrant Register No. 1429, totaling $2,132,199.60, which covers the period of July 14, through July 27, 2015, and consists of the following: A. Ratification of wire transfers totaling $1,757,002.24; and B. Ratification of the issuance of early checks totaling $193,300.61; and C. Authorization to issue pending checks totaling $81,896.75. 7. Approval of Light & Power Warrant Register No. 394, totaling $6,189,431.15, which covers the period of July 14, through July 27, 2015, and consists of the following: A. Ratification of wire transfers totaling $6,108,687.04; and B. Ratification of the issuance of early checks totaling $52,073.95; and C. Authorization to issue pending checks totaling $28,670.16. 8. Approval of Gas Warrant Register No. 182, totaling $23,095.04, which covers the period of July 14, through July 27, 2015, and consists of the following: A. Ratification of the issuance of early checks totaling $16,722.05; and B. Authorization to issue pending checks totaling $6,372.99. 9. Approval of RDA Obligation Fund Warrant Register No. 25, totaling $7,000.00, which covers the period of April 2, through July 27, 2015, and consists of the following: A. Ratification of the issuance of early checks totaling $7,000.00. 10. Approval of Asset Forfeiture State Warrant Register No. 1,totaling$124,960.00,which covers the period of July 14, through July 27, 2015, and consists of the following: A. Ratification of the issuance of early checks totaling $124,960.00; and Page 2 of 8 Regular City Council Meeting Agenda August 4, 2015 City Administration Department 11. Report on Contracts Exempt from Competitive Selection by the City Administrator. Recommendation: A. Receive and file this report as it is being provided for informational purposes only pursuant to Section 2.17.12(B)(3) of the Vernon Municipal Code. Fire Department 12. Activity Report for the period of July 1 through July 15, 2015, to be received and filed. Police Department 13. Activity Log and Statistical Summary of Arrests and Activities for the period of July 1, through July 15, 2015, to be received and filed. Public Works, Water and Development Services Department 14. June 2015 Monthly Building Department Report, to be received and filed. NEW BUSINESS City Administration Department 15. Ratification of Mayor's Appointment of Eligible Individuals to Serve on the Vernon Housing Commission for New Four-Year Terms Beginning August 11, 2015 and Ending June 30, 2019. Recommendation: A. Find that ratification of the Mayor's appointment of eligible individuals requested in this staff report is exempt from the California Environmental Quality Act (CEQA) in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and B. Ratify the Mayor's appointment of the following eligible individuals to serve on the Vernon Housing Commission for new four-year terms beginning August 11, 2015: Mayor'sppointment Eligible Appointment Categ_n John Kriste (Incumbent) Resident(Non-City Council member) Steve Florman Business Representative Kyle Cooper Business Representative Hector Garcia(Incumbent) Business Employee Page 3 of 8 Regular City Council Meeting Agenda August 4, 2015 16. Proposed"Opt-Out" Opportunity for Vernon Tenants Impacted by the Vernon Housing Remodel Project. Recommendation: A. Find that approval and authorization of the proposed "opt-out" option related to the remodel of City-owned housing units is exempt under the California Environmental Quality Act ("CEQA") in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and B. Approve and authorize staff to provide the seven tenants impacted by the proposed Vernon Housing Remodel Project an"opt-out" opportunity. Fire Department 17. A Resolution of the City Council of the City of Vernon approving and authorizing the execution of a master lease purchase agreement by and between the City of Vernon and Oshkosh Capital for two 2016 Pierce PUC Triple Combination Pumpers. Recommendation: A. Find that approval of the proposed resolution is exempt from California Environmental Quality Act ("CEQA") review, because it is an administrative purchasing activity that will not result in direct or indirect physical changes in the environment,and therefore does not constitute a"project" as defined by CEQA Guidelines section 15378. Furthermore, even if it were a project, because such activity will not have any effect on the environment,this action would be exempt from CEQA review pursuant to CEQA Guidelines Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and B. Adopt the resolution establishing the terms set with Oshkosh Capital for the recently approved ten (10) year Lease-Purchase Agreement for two (2) 2016 Pierce PUC Triple Combination Pumpers. Gas and Electric Department 18. A Resolution of the City Council of the City of Vernon approving an amended City of Vernon utilities department rules for electric service. Recommendation: A. Find that the approval of the City of Vernon Revised Electric Rule No. 2 is exempt from California Environmental Quality Act ("CEQA") review because it is general policy and procedure making that will not result in direct or indirect physical changes in the environment, and therefore does not constitute a"project" as defined by CEQA Guidelines §15378; and B. Approve the resolution to thereby, amend Section (H.2) of Rule 2 of the City of Vernon's Rules for Electric Service to state that effective August 4,2015 customers being served by the Customer- Financed Added Facilities shall pay a monthly charge of 0.33% of the amount advanced, and customers being served by City-Financed Added Facilities shall pay a monthly charge of 1.0% of the additional cost associated with the Added Facilities. Changes are being requested to the following City documents: Electric Service Rule No. 2 -Description of Service. Page 4 of 8 Regular City Council Meeting Agenda August 4, 2015 19. A Resolution of the City Council of the City of Vernon approving and authorizing the execution of an added facilities agreement by and between the City of Vernon and Grand Packaging Inc. Recommendation: A. Find that the approval of an Added Facilities Agreement with Command Packaging is categorically exempt from the California Environmental Quality Act ("CEQA") pursuant to CEQA Guidelines §15301(b),because this approval will merely lead to the possible construction of additional laterals and related meters to deliver electric service, and such construction is, at most, a negligible expansion of the existing facilities of the City's electric utility; and B. Approve the resolution to thereby permit the execution of an Added Facilities Agreement by and between the City of Vernon and Grand Packaging Inc. pursuant to Rule No. 2.1-1 which provides long-term benefits for the Customer and the Department. 20. A Resolution of the City Council of the City of Vernon approving and adopting the natural gas rebate program for customers connected to the City's gas distribution system. Recommendation: A. The City Council find that the approval of a CARB Rebate Program is exempt under the California Environmental Quality Act ("CEQA") in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and B. Adopt a resolution approving, establishing and implementing a natural gas CARB Rebate Program to customers connected to City's gas distribution system. The Program will be funded through rate schedule, "G-CARB" covering the cost of greenhouse gas emission allowances associated with the"cap-and-trade"program initiated by the California Air Resources Board("CARB"); and C. Find that the Natural Gas Rebate Program as attached to the resolution be approved with an effective date of September 1, 2015. 21. Request for Approval of an Agreement with Absolute International Security, Inc. in Response to the City's Request for Proposals for Unarmed Security Guard Services. Recommendation: (Items A-C) A. Find that proposed agreement by and between the City of Vernon and Absolute International Security, Inc. ("AIS") is exempt under the California Environmental Quality Act ("CEQA") in accordance with CEQA Guidelines Section 15061(b)(3), the general rule that CEQA only applies to projects that may have a significant effect on the environment, because the agreement does not have an impact; and B. Accept the proposal from AIS as the most qualified and cost effective respondent, rejecting all other proposals; and Page 5 of 8 Regular City Council Meeting Agenda August 4, 2015 C. Award and authorize the execution of the services agreement by and between the City of Vernon and Absolute International Security,Inc.,in substantially the same form as submitted with the staff report, for unarmed security guard services. The proposed contracted services equate to a total compensation amount not-to-exceed $253,294.00 per year, with an incremental increase of up to 5%to be considered over the three (3) year term of the agreement. Human Resources Department 22. Adoption of City of Vernon Personnel Policies and Procedures, Harassment/Discrimination Free Workplace III-7 (new format) and Voluntary Respiratory Safety Equipment — Non-Safety Personnel VI-1 (new). Recommendation: A. Find that approval of the proposed personnel policy and procedures is exempt from California Environmental Quality Act("CEQA")review,because it is a general policy and procedure making activity that will not result in direct or indirect physical changes in the environment, and therefore does not constitute a"project" as defined by CEQA Guidelines section 15378. Furthermore, even if it were a project, because such activity will not have any effect on the environment, this action would be exempt from CEQA review pursuant to CEQA Guidelines Section 15061(b)(3), the general rule that CEQA only applies to projects that may have a significant effect on the environment; and B. Adopt the Personnel Policy and Procedures, Harassment/Discrimination Free Workplace III-7 (new format) and Voluntary Respiratory Safety Equipment — Non-Safety Personnel VI-1 (new) and incorporate into the Personnel Policies and Procedures Manual; and C. Authorize the City Administrator and the Director of Human Resources to execute and distribute the above-referenced policies to all employees. Police Department 23. Authorize the Donation of 2005 Chew Tahoe to the City of San Fernando Police Department Reserve Officer Program. Recommendation: (Items A-C) A. Find that approval of the proposed donation is exempt under the California Environmental Quality Act ("CEQA") in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and B. Authorize the donation of a surplus 2005 Chevy Tahoe Patrol Vehicle, to be conveyed to the City of San Fernando Police Department Reserve Officer Program; and Page 6 of 8 Regular City Council Meeting Agenda August 4, 2015 C. Enter into a donation and release agreement, in substantially the same form as submitted with the staff report, with the City of San Fernando Police Department, to use and retain as needed by the Reserve Police Officer Program. Public Works, Water and Development Services Department 24. 5-Year Capital Improvement Plan 2015-2020. Recommendation: A. Find that review of the proposed 5-Year Capital Improvement Plan FY 2015-20 is not a project pursuant to the California Environmental Quality Act ("CEQA") Guidelines Section 15378(b) because such activity has no potential for resulting in any change (direct or indirect, physical or otherwise)in the environment, is purely administrative in nature and concerns general government fiscal activity that does not involve any commitment to any specific project; and B. Review and provide direction and comments regarding the proposed 5-Year Capital Improvement Plan. ORDINANCES 25. Approval of the following ordinances Granting U.S. Tow, Inc. and Mr. C's Towing of South Gate Inc.,A Franchise Towing Services Agreement: Ordinance No. 1231 - An Ordinance of the City Council of the City of Vernon granting to U.S. Tow, Inc., a franchise towing services agreement. Ordinance No. 1232 - An Ordinance of the City Council of the City of Vernon granting to Mr. C's Towing of South Gate, Inc., a franchise towing services agreement Recommendation: A. Find that approval of a services agreement with US Tow Inc. and Mr. C's Towing is exempt under the California Environmental Quality Act("CEQA") in accordance with Section 15061(b)(3),the general rule that CEQA only applies to projects that may have a significant effect on the environment; and B. Hold the first reading of the proposed Ordinance granting to U.S. Tow, Inc., a franchise towing services agreement; and C. Hold the first reading of the proposed Ordinance granting to Mr. C's Towing of South Gate, Inc., a franchise towing services agreement; and D. Authorize the Mayor to execute the franchise agreements on behalf of the City. Page 7 of 8 Regular City Council Meeting Agenda August 4, 2015 DISCUSSION ITEM AND POSSIBLE DIRECTIVES TO STAFF 26. Discussion of Proposed Elimination of Priority for First Responders in Leasing Citv-Owned Housing. Recommendation: A. Hold a discussion regarding the joint recommendation made by the Housing Commission and City staff to eliminate the priority for first responders in leasing City-owned housing. B. If the City Council concurs with the aforementioned recommendation, direct staff to prepare an ordinance to amend Section 2.125(b) of the Vernon Municipal Code to remove the first responder leasing priority, effective at 5:01 p.m. on December 8, 2015. ORAL REPORTS 27. City Administrator Reports — brief reports on activities and other brief announcements by the City Administrator and Department Heads. 28. City Council Reports—brief report on activities, announcements, or directives to staff. CLOSED SESSION 29. CONFERENCE WITH REAL ESTATE NEGOTIATIONS Government Code Section 54956.8 Property: 3200 Fruitland Ave Vernon CA Agency Negotiator: Mark Whitworth, City Administrator/Alex Kung,Economic Development Manager Negotiating Party: 3200 Fruitland GAP, LLC, Xebec Under Negotiation: Price and Terms of Assignment and Assumption of Purchase and Sale Agreement ADJOURNMENT I hereby certify under penalty of perjury under the laws of the State of California, that the foregoing agenda was posted on the bulletin board at the main entrance of the City of Vernon City Hall,located at 4305 Santa Fe Avenue, Vernon, California, and on the City's website,not less than 72 hours prior to the meeting set forth on this agenda. Dated this 30th day of July 2015. By: Maria E. Ayala, City Clerk Page 8 of 8 av v REC= my 5 �a..r C ED +#fir oi�* j .OF Y- A ED k�lL Ila6 JUL 2 9 2015 JUL 2 8 2015 CITY CLERK'S OFFICE STAFF REPORT CITY ADMINISTRATION VERNON POLICE DEPARTMENT A"� DATE: August 4, 2015 —Lv TO: Honorable Mayor and Council Members FROM: Daniel Calleros, Chief of Police RE: Awards Presentation Recommendation The Vernon Police Department (VPD) in conjunction with a representative from the California Highway Patrol (CHP) will conduct an award presentation for the recipients of the CHP "10851" Grand Theft Auto Recovery Award. Background The "10851" Grand Theft Auto Award is named after the California Vehicle Code section relating to the theft of motor vehicles. The award is sponsored in collaboration between by the CHP and AAA Insurance, and recognizes police officers throughout California who have been proactive in recovering stolen vehicles and apprehending criminals specifically involved in auto theft. The 10851 pin is awarded to uniform officers who, during a 12-month period, have achieved any of the following criteria: 1. Made six separate theft recoveries cleared by arrests. 2. Recover twelve (12) stolen vehicles, of which a minimum of three (3) must be cleared by arrests. Vernon Police Officers Fernando Valenzuela and Luis Vasquez have achieved this benchmark once again. This will be the ninth award for Officer Valenzuela and the third award for Officer Vasquez. Both officers are very proactive in auto theft investigations and are leaders in annual auto theft arrests. Very few officers ever receive this award given the specific requirements. Fiscal Imuact There is no fiscal impact to the City general budget. Aftachment(s} None 0 'w y 'Rr F4; RECEIVED JUL 2 9 Z015 CITY CLERK'S OFFICE STAFF REPORT J'�L 2 8 2015 FIRE DEPARTMENT v r;OiVIINISTPATMN DATE: August 4, 2015 TO: Honorable Mayor and City Council FROM: Michael A. Wilson, Fire Chief Originator: Adriana Ramos,Ad i rative Secretary RE: Badge Presentation Ceremony Recommendation Fire Chief, Michael A. Wilson, to present badge and recognition to the Fire Department's newly promoted Fire Engineer, Jason Rosa. BacLkground Every two years the Fire Department conducts an internal written and practical examination for the position of Fire Engineer in order to establish a promotional list. A position recently became available for the rank of Fire Engineer. Based on the promotional list created, it was determined that Firefighter Jason Rosa be promoted to the Fire Engineer position. Fiscal Impact None. Attachment(s) None. Page 1 of 1 ern°r Litt' °i V \.ate year E I OS o f vEq,�,o u • �r ��. you J�Y �I'SIV ELY �O MCNtYP0tiviel\ S � 2p1 Overview • Fiscal Year 2015 Financial Results • Investment Portfolio Update • Interest Rate Swap Contracts • Pension Funding • Other Post Employment Benefits ( OPEB ) • 2015 Electric Revenue Bonds Governmental Funds Year Ended June 30, 2015 (In $ Millions) 12 Months 12 Months 12 Months Department Budget Preliminary Variance Revenues General Government 63.4 59.3 (4.1) Health 2.7 2.3 (0.4) Public Safety 1 .6 1 .9 0.3 Public Works 4.1 10.0 5.9 Total Revenues 71.8 73.5 1.7 Expenditures General Government 33.4 29.1 (4.3) Health 1 .7 1 .5 (0.2) Public Safety 25.2 25.8 0.6 Public Works 11 .5 12.1 0.6 Total Expenditures 71.8 68.5 (3.3) Net 0.0 5.0 5.0 *Reported on cash basis. 3 Enterprise Funds Year Ended June 30, 2015 (In $ Millions) 12 Months 12 Months 12 Months Department Budget Preliminary Variance Revenues Light and Power 202.8 201.9 (0.9) Gas 59.6 42.8 (16.8) Water 8.5 8.0 (0.5) Fiber 0.6 0.4 (0.2) Total Revenues 271.5 253.1 Expenditures Light and Power 202.3 189.7 (12.6) Gas 59.6 41.6 (18.0) Water 8.9 7.5 (1.4) Fiber 0.7 0.3 (0.4) Total Expenditures 271.5 239.1 (32.4) Net 0.0 (14.0) *Reported on cash basis. 4 Fiscal 2015 Combined Year-End Results (In $ Millions) $300.0 $250.0 $200.0 $150.0 $100.0 $50.0 $- $(50.0) ENTERPRISE ENTERPRISE GOV'T GOV'T REVENUES EXPENDITURES REVENUES EXPENDITURES ■ 2015 BUDGET $271.5 $271.5 $71.8 $71.8 ■ 2015 PRELIMINARY $253.1 $239.1 $73.5 $68.5 VARIANCE 18.4 32.4 1.7 3.3 *Reported on cash basis. $14.0 � $19.0 $5.0 5 Financial Reporting Adjustments • The Budget is prepared on a cash basis. • There are non-cash transactions that reduce financial operating results. • Anticipated impact on net assets : — Amortization of Gain on MGS/Transmission Sale $ 3.9 million — Depreciation expense ($9.5) million — Loss of Interest Rate Swaps ($6.1) million — Postemployment benefit expense ($2.7) million — Sale of a real estate at a loss (Thermador) ($2.3) million — Sale of intangible asset at a loss (NOX Credits) ($1.6) million — Amortization of Bond Premiums ($1.1) million Investment Portfolio Overview As of June 30, 2015 (In $ Millions) Minimum Actual Fair Value % Required Credit Rating as of of In custody of Treasurer: Cash on Hand and on Deposit N/A N/A $ 39.2 25.1% Local Agency Investment Fund None Not Rated 0.5 0.3% Total in custody of Treasurer 39.7 25.5% In custody of Trustee: Deposits and Money Market Funds Aaa / AAA Aaa / AAA 81.9 52.5% U.S. Treasury Notes A Aaa / AA+ 24.8 15.9% Federal National Mortgage Association Aaa / AA+ 4.9 3.1% Federal Home Loan Mortgage Corporation A Aaa / AA+ 2.3 1.5% Federal Home Loan Bank P4 Aaa / AA+ 2.3 1.5% Total in custody of Trustee 116.2 74.5% Total cash and investments held by Treasurer and Trustee $ 155.9 100.0% Investment Maturities As of June 30, 2015 (In $ Millions) _rFair Value Investment Maturities (in Months) ir as of Less than 13 - 24 . 1 % . 6/30/15 12 Months • • • Money Market Funds $ 81.9 $ 81.9 $ - $ - 70.2% Local Agency Investment Fund 0.5 0.5 - - 0.4% U.S. Treasury Notes 24.8 13.7 1 11.1 - 21.3% Federal National Mortgage Association 4.9 4.9 4.2% Federal Home Loan Mortgage Corporation 2.3 2.3 - - 2.0% Federal Home Loan Banks 2.3 2.3 2.0% Total Investments $ 116.7 $ 105.6 $ 11.1 $ - 100.0% • $105.6 million (90%) of investments mature in less than one year. Investment Portfolio by Fund As of June 30, 2015 (In $ Millions) Cash and lnvestmentsl9rmw Enterprise Governmental Restricted Cash (debt service, capital improvement, grants, and rate stabilization) 11 59. $ 3.5 $ 63.1 Unrestricted Cash (available for City's daily operation) 89.1 3.7 92.8 Totals 148.7 7.2 155.9 Interest Rate Swap Contracts As of June 30, 2015 (In $ Millions) NotionalInvestment Derivative Instruments (Variable to Fixed Swaps) Amount Liability 7/1/2014 - Liability 1 1 1 16/30/2015 2004 Series A Bonds (City pays 3.607% and receives 62.87 of LIBOR one-month index plus 0.119%) $ 90.2 $ (16.6) $ (6.0) $ (22.6) 2004 Series B Bonds (City pays 3.542% and receives 62.87 of LIBOR one-month index plus 0.119%) 83.6 13.7 0.1 13.8 Totals 173.8 30.3 6.1 36.4 *On July 21, 2015, both interest rate swaps were terminated for $36.3 million. Pension Funding (In $ Millions) Safety Plan Schedule of Funding Progress Valuation Actuarial Asset Unfunded Funded Date Liability Values Liability Ratio 6/30/2013 $195.5 $144.3 $51.2 73.8% 6/30/2012 187.8 156.9 30.9 83.5% 6/30/2011 169.9 149.2 20.6 87.9% Miscellaneous Plan Schedule of Funding Progress Valuation Actuarial Asset Unfunded Funded Date Liability Values Liability Ratio 6/30/2013 $122.7 $ 93.7 $29.1 76.3% 6/30/2012 116.8 101.7 15.1 87.1% 6/30/2011 108.1 L 97.2 10.9 L 89.9% • The unfunded liability increased at 6/30/2013 due to market value decreases in asset values and early retirements under the PARS program. • The 6/30/2014 valuation is due October 2015. Increases in the market asset values is anticipated. • GASB Statements 67, 68, and 71 became effective for fiscal 2015. The unfunded pension liability will be reflected on the 6/30/2015 financial statements. • The City plans to develop a funding plan to address the unfunded pension liability. Other Post Employment Benefits (OPEB) • Other post employment benefits consist of retirement benefits other than pension obligations. • As of July 2012, the actuarial unfunded liability was $44.6 million . • Effective fiscal 2018, this liability is expected to be reflected on the financial statements. • Historically, the funding has been made on a "pay-as- you-go" basis. Electric Revenue Bonds Overview • On July 9, 2015, the City of Vernon sold $ 111 .7 million of 2015 Taxable Series A Electric System Revenue Bonds. • The transaction was structured to capture the current low interest rate market that provides the ability to : — Smooth existing debt structure to provide long-term electric rate stability. — Reduce the existing annual debt service payments. — Terminate the two existing interest rate swap agreements. Electric Revenue Bonds Marketing Effort • A Preliminary Official Statement was publically released for potential investors to evaluate the bonds offered for sale. • The City developed an Internet roadshow presentation that was viewed by 17 major institutional investors. • J . P. Morgan canvassed investor interest, soliciting 44 different accounts leading up to the bond sale. • 10 accounts were highly interested prior to the final market pricing. Electric Revenue Bonds Results • The underwriters generated over $ 198 million in total orders for the Bonds. • The interest rates received were 1 .75% lower than the same maturity of the City's 2012 Taxable Bonds. • The Bonds were placed with 14 total investors : — 11 new investors — 3 existing investors Electric Revenue Bonds Final Pricing Maturity Total Par Amount Coupon Rate 8/1/2022 22,540,000 4. 500 8/1/2023 23,520,000 4.050 8/1/2024 2415851000 4.800% 8/1/2025 25,780,000 4. 650 8/1/2026 15, 295,000 4.850% Total 111,720,000 4.554% Electric Revenue Bonds Future Debt Service Schedule 70 Remaining 2008/2012 Bonds 2009 Unrefunded Debt Service 2015A Principal fiD 2015A Interest —Existing Debt Service 50 40 30 20 10 D a a a a a a a a a a a a a a a a a a a a a a a a a a a 1 1 1 1 N N N N N N N N N N W W W W W W W W w W � � P. 65 -! co M Q s N W � CPS 65 -! 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O w p CA O O O to _ a � � � o E (D CD cm m m Q c Q ° E - o c}v `v C/7 I-- LLLL + U � J W �' r / � 2 2 aj � � e c % > E k CL U / o ( � � O I 2 / E > % (o CL § y f % k @ U 2 k O § CL 0f / cn Ecu @ v (D q 2 J M k E R -0 2 o E22 # � " w- - � E W - / k k 2 ww O � q 2 § 2 2 7 2 2 £ % ° > I / 7 v w co \ k k / \ / 0 \ k J § d 0 � k _ = E @ ® a E cn ro $ 2 c / k k k 2 e 7 $ \ e > e > x o 2 a) L 6 ( $ k ( § E § E _ m _ # M . �� a m rn a o a r o 0 0 C7 N c Q r � VW ao 's Wm o � Z r LO r � � N N t�j o 3 J d W O r Z a Ul Z o u) ZFW.. ta.1 N Wd c� � WU. y a� 0Z a 7 p U U 0�4 a c Z o 7 co © rn Q ,r 0 0 019 C) r dz o L 0 0 N a Q z 4 7 J � / Q � & r _ Q t � a «0 4 �r � � A � 00 « � � U � Q ¢ � � r Ul � « « f o ~ CWI t ƒ k � \ g 0 \ � « IZ � « RECEIVED JUL 2 9 2015 STAFF REPORT CITY CLERK'S OFFICE CITY ADMINISTRATION DATE: August 4, 2015 TO: Honorable Mayor and City Council FROM: Mark C. Whitworth, City Administrator Originator: Lilia Hernandez, Executive Asatiecity Administrator RE: Report on Contracts Exempt from Competitive Selection by the City Administrator Recommendation A. Receive and file this report as it is being provided for informational purposes only pursuant to Section 2.17.12(B)(3) of the Vernon Municipal Code. Background Pursuant to Section 2.17.12(B)(2) of the Vernon Municipal Code, specific contracts may be exempted from the competitive selection process, where it is found that the best interests of the City are served by a direct award of the contract without a competitive selection process. Section 2.17.12(B)(3) of the Vernon Municipal Code gives the City Administrator the authority to make such finding(s) for all contracts with a total value over the lifetime of the contract up to $100,000 and when making such finding(s), requires the City Administrator to submit a written report to the City Council, at a regular City Council meeting within 30 days of the finding(s), detailing the reasons for the finding(s). On July 20, 2015, pursuant to Section 2.17.12(B)(2) of the Vernon Municipal Code described above, the City Administration Department submitted a request for the issuance of a Purchase Order to Drizen-Dohs Corporate Communications, Inc. (DDCC) in the amount of $76,500 for the production of the Vernon Quarterly during the 2015-2016 fiscal year. The Vernon Quarterly, is a City newsletter that is a critical tool in communicating important information about major City events, projects, activities, and changes to the entire Vernon community on a broad platform. To date, some of the feature stories have focused on various tax proposals and budgetary issues, as well as new members of the City's executive team. Most recently, two Special Edition issues of the Vernon Quarterly were produced; one chronicling the City's top ten good governance reforms, and the other featuring the completion of the 52°d Drive affordable housing project — Vernon Village Park. DDCC is a fully vertical, corporate communications firm with more than 25 years of experience, serving clients of all sizes and in all industries. The Pagel of 2 City Administrator's determination that the "best interests of the City are served by a direct award of the contract" is based on DDCC's ability to provide all of the services needed (creative, editing, proofreading, design, production, printing and finishing) to produce the Vernon Quarterly under one facility, their competitive pricing, as well as their demonstrated willingness to work with City staff to meet, sometimes short, publication deadlines. Fiscal Impact Sufficient funds for this agreement are available in the 2015/2016 City Administration budget. Attachment(s) None. Page 2 of 2 RFf'-'E1VED ofRECEIVED JUL 2 7 2015 !ri Ott JUL 2 7 2015 CITY CLERK'S F 0 FICE CITY ADMINISTRATION ty tt FIRE DEPARTMENT Michael A.Wilson,Fire Chief 4305 Santa Fe Avenue, Vernon,California 90058 Telephone(323)583-8811 Fax (323) 826-1407 July 23, 2015 Honorable Mayor and City Council City of Vernon Honorable Members: Attached is a copy of the Vernon Fire Department Activity Report which covers the period of July 1, 2015 through July 15, 2015. Respectfully Submitted, 14lichae) A. Wilson Fire Chief MAW:ar Fireletnow F CcfusiveCy IndustriaC VERNON FIRE DEPARTMENT COMPANY ACTIVITIES July 1,2015 to July 15, 2015 This Period Last Year This This Year Last Year To Date Period To Date ACTIVITY TYPE FIRE PREVENTION: Regular Inspections (#): 30 750 75 887 Re-Inspections (#): 6 107 16 185 Spec. Haz. Inspections (#): 1 28 0 20 Total Inspections: 37 885 91 1092 Total Man Hours: 37 1086 110 1528 TRAINING (HOURS Firefighting 93 1091 82 1335 Hazardous Materials 32 383 31 417 Safety 119 1471 127 1791 Apparatus Operations 122 1486 122 1652 Equipment Operations 119 1478 125 1722 CPR 4 52 0 24 First Aid 18 357 17 282 Total Hours: 507 6318 504 7223 PRE-INCIDENT (HOURS Planning 45 942 55 1205 District Familiarization 54 1019 61 1025 Total Hours: 99 1961 116 2230 PERIODIC TEST (HOURS Hose Testing 0 8 0 26 Pump Testing 0 3 0 10 Total Hours: {} 11 0 36 Page 1 PUBLIC SERVICE PROGRAMS (HOURS School Programs 0 12 2 31 Fire Brigades 0 2 0 13 Emergency Preparedness 8 141 7 162 Total Hours: 8 155 9 206 ROUTINE MAINTENANCE (HOURS): Station 121 1452 126 1610 Apparatus 142 1509 125 1648 Equipment 130 1512 126 1720 Total Hours: 393 4473 377 4978 Grand Total Hours: 1044 14004 1116 16201 F ireactivity Page 2 w 0 N MI N A O z w L � o a a� LA L Ul N � w 4A � T NMI •� N CL - w l zo � 0 z a ` ca n � 6 N p z a[ E E • L L a �OZ � �r` Z v m m W V 3 a/Oo c Li CLCL U aaa D a y vas V e� z z o E Z QOLL 0. CLN1N1 � » u4. W aGu+ H33 3 W W W W W W W W W W W W W W W LL LL LL W W V1 YY Incident Type Incident Date PREVENTION FOLLOW-UP? Shift 311 Medical assist, assist EMS crew 07/01/2015 03:49:57 No 311 Medical assist, assist EMS crew 07/01/2015 06:58:53 No 700 False alarm or false call, other 07/01/2015 15:24:34 No 700 False alarm or false call, other 07/01/2015 16:46:15 No 551 Assist police or other governmental agency 07/02/2015 08:26,26 No 735 Alarm system sounded due to malfunction 07/02/2015 12:08:44 No 140 Natural vegetation fire, other 07/02/2015 16:57:05 No 322 Motor vehicle accident with injuries 07/02/2015 18:56:29 No 500 Service Call, other 07/02/2015 20:39:47 No 323 Motor vehicle/pedestrian accident(MV Ped) 07/02/2015 20:49:33 No 745 Alarm system activation,no fire,unintentional 07/03/2015 09:25:27 No 732 Extinguishing system activation due to malfunc 07/04/2015 15:45:40 No 611 Dispatched &canceled en route 07/04/2015 18:41:43 No 611 Dispatched &canceled en route 07/04/2015 21:41:00 No 900 Special type of incident, other 07/04/2015 22:15:13 No 07/05/2015 09:08:35 No 571 Cover assignment, standby, moveup 07/05/2015 15:53:58 No 07/05/201515:59:46 No 522 Water or steam leak 07/05/2015 16:42:06 No 311 Medical assist, assist EMS crew 07/06/2015 07:17:31 No 700 False alarm or false call, other 07/06/2015 08:46:05 No 735 Alarm system sounded due to malfunction 07/06/2015 12:55:30 No 324 Motor vehicle accident with no injuries 07/06/2015 20:26:26 No 700 False alarm or false call, other 07/07/2015 06:57:58 No 311 Medical assist, assist EMS crew 07/07/2015 09:57:28 No 321 EMS call, excluding vehicle accident with inju 07/07/2015 14:35:28 No 700 False alarm or false call, other 07/08/2015 05:28:57 No 321 EMS call, excluding vehicle accident with inju 07/08/2015 11:55:13 No 322 Motor vehicle accident with injuries 07/08/2015 17:42:59 No 745 Alarm system activation,no fire,unintentional 07/09/2015 04:14:30 No 700 False alarm or false call, other 07/09/2015 07:33:31 No 700 False alarm or false call, other 07/09/2015 13:49:26 No 571 Cover assignment, standby, moveup 07/09/2015 14:11:43 No 324 Motor vehicle accident with no injuries 07/09/2015 14:13:37 No 321 EMS call, excluding vehicle accident with inju 07/09/2015 15:04:52 No 321 EMS call, excluding vehicle accident with inju 07/09/2015 16:57:33 No 07/09/201519:39:52 No 700 False alarm or false call, other 07/10/2015 06:45:49 No 324 Motor vehicle accident with no injuries 07/10/2015 10:47:20 No 321 EMS call, excluding vehicle accident with inju 07/10/2015 11:41:54 No 571 Cover assignment, standby, moveup 07/11/2015 23:36:47 No 321 EMS call, excluding vehicle accident with inju 07/1 11201 5 23:58:56 No 322 Motor vehicle accident with injuries 07/12/2015 09:31:30 No 700 False alarm or false call, other 07/12/2015 12:11:55 No 321 EMS call, excluding vehicle accident with inju 07/12/2015 13:40:23 No 311 Medical assist, assist EMS crew 07/12/2015 14:03:16 No 311 Medical assist, assist EMS crew 07/13/2015 10:48:21 No 321 EMS call, excluding vehicle accident with inju 07/13/2015 11:53:13 No 611 Dispatched &canceled en route 07/13/2015 19:41:09 No 743 Smoke detector activation, no fire- unintenti 07/13/2015 23:12:50 No 116 Fuel burner/boiler malfunction, fire confined 07/14/2015 00:40:53 No 741 Sprinkler activation, no fire-unintentional 07/14/2015 17:16:58 No 321 EMS call, excluding vehicle accident with inju 07/15/2015 06:42:58 No 321 EMS call, excluding vehicle accident with inju 07/15/2015 10:49:00 No 611 Dispatched &canceled en route 07/15/2015 17:34:32 No 745 Alarm system activation,no fire,unintentional 07/15/2015 21:57:33 No T 0 N t N A C z w low ` � o a M � II w Vr N •� N N A V r w — a ° � o C. 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LLJ W W L•J W W W L+J W W W W LLJ W LLI W LJJ W W W W 4J W W W W W W W Ld .r� RECEIVED vo, o OttCITY AW11NISTRATION ` - J POLICE DEPARTMENT Daniel Calleros, Chief of Police 4305 Santa Fe Avenue,Vernon, California 90058 Telephone (323)587-5171 Fax (323) 826-1481 July 16, 2015 Honorable City Council City of Vernon Vernon, California Honorable Members: Attached are copies of the Vernon Police Department Activity Log and Statistical Summary of Arrest and Activities which cover the period from 12:01 a.m., July 1, 2015 up to and including midnight of July 15, 2015. Respectfully submitted, VERNON POLICE DEPARTMENT DANIEL CALLEROS CHIEF OF POLICE DC/dr ;CcCusivety Industries! VERNON POLICE DEPARTMENT Department Activity Report First Date: 07101/2015 .Jurisdiction: VERNON Last Date: 0711512015 Department Complaint All Units Primary Unit Type Description VPD 10-6 OFFICER IS 10-6 C7,961,962.10-10,WASH, EQUIPR 111 103 10-96H PICK UP THE JAIL PAPER WORK FROM HP JAIL 1 1 10-96M 10-96 MARY(MAIL DETAIL) 2 2 140 SUPPLEMENTAL REPORT 1 1 166 COURT ORDER VIOLATION 4 1 166R COURT ORDER VIOLATION REPORT 3 1 20001 INJURY HIT AND RUN 8 1 20002 NON-INJURY HIT AND RUN is 7 20002R NON-INJURY HIT AND RUN REPORT 6 4 211 R ROBBERY REPORT 1 1 211 S SILENT ROBBERY ALARM 15 3 240R ASSAULT REPORT 1 1 242R BATTERY REPORT 1 l 261 R RAPE REPORT 4 1 415 DISTURBING THE PEACE 19 6 422R TERRORIST THREATS REPORT 2 1 459A AUDIBLE BURGLARY ALARM 131 69 459V BURGLARY TO A VEHICLE 1 1 459VR BURGLARY TO A VEHICLE REPORT 3 2 484 PETTY THEFT 4 1 484R PETTY THEFT REPORT 8 6 487R GRAND THEFT REPORT 3 3 586 PARKING PROBLEM 16 13 594 VANDALISM 7 2 594R VANDALISM REPORT 3 2 602 TRESPASS 9 4 647F DRUNK IN PUBLIC 5 2 901 UNKNOWN INJURY TRAFFIC COLLISION 3 1 901T INJURY TRAFFIC COLLISION 9 3 901TR INJURY TRAFFIC COLLISION REPORT 1 1 902T NON-INJURY TRAFFIC COLLISION 39 23 902TR NON-INJURY TRAFFIC COLLISION REPORT 3 2 909T TRAFFIC HAZARD 2 2 911A CONTACT THE REPORTING PARTY 6 4 917A ABANDONED VEHICLE 1 1 925 SUSPICIOUS CIRCUMSTANCES 20 11 927 UNKNOWN TROUBLE 3 1 ASTVFD ASSIST VERNON FIRE DEPARTMENT 10 7 BOVEH BROKEN DOWN VEHICLE 12 10 CITCK CITATION CHECK 15 12 CIVIL CIVIL MATTER 4 2 CODE5 SURVEILLANCEISTAKE-OUT 4 2 COP COP DETAIL 4 3 DEAD ANIMAL DEAD ANIMAL FOR REMOVAL 2 1 DET DETECTIVE INVESTIGATION 17 7 DETAIL DETAIL g 6 DOA DEAD ON ARRIVAL 8 1 DPTAST DEPARTMENTAL ASSIST 2 2 07/16/2015 01:33:41 Page f of 2 VERNON POLICE DEPARTMENT Department Activity Report First Date: 07/01/2015 Jurisdiction: VERNON Last Date: 07/15/2015 Department Complaint All Units Primary Unit Type Description VPD DUI CKPT DUI CHECK POINT 1 1 DUITRAFFIC DUI CHECK POINT TRAFFIC 26 17 FILING OFFICER IS 10-6 REPORT WRITING 30 30 FU FOLLOW UP 24 20 GTAR GRAND THEFT AUTO REPORT 2 2 HBC HAILED BY A CITIZEN 3 2 ILLDPG ILLEGAL DUMPING 2 1 JAILPANIC TEST THE JAIL PANIC ALARM BUTTON 1 1 k9 TRAINING K9 TRAINING REMINDER,OBTAIN LOCATION 1 1 LOCATE LOCATED VERNON STOLEN VEHICLE 1 1 LOJACK LOJACK HIT 2 1 LPR LICENSE PLATE READER 1 1 MR60 MISC REPORT 2 2 PANIC ALARM PANIC ALARM/DURESS ALARM 3 1 PAPD PUBLIC ASSIST-POLICE 7 6 PATCK PATROL CHECK 128 108 PDO PROPERTY DAMAGE ONLY 1 1 PEDCK PEDESTRIAN CHECK 39 20 PRSTRAN PRISONER TRANSPORTED 8 7 REC RECOVERED STOLEN VEHICLE 14 6 RECDALARM TEST THE RECORDS ALARM 1 1 RECKLESS DF RECKLESS DRIVING(23103) 3 2 REPO REPOSSESSION 1 1 RR RAIL ROAD PROBLEM 3 3 SEAACA SEAACA ANIMAL CALLS 3 1 SHOTS SHOTS 2 1 SPEED SPEED CONTEST OR SPEEDING(23109) 10 4 STRAY STRAY DOG 1 ANIMAL 1 1 SUICIDE SUICIDE ATTEMPT 2 1 TRAFFIC STOI TRAFFIC STOP 249 195 VCK VEHICLE CHECK 80 54 VEH RELEASE VEHICLE RELEASE 22 16 WARRANT WARRANT ARREST 13 7 WELCK WELFARE CHECK 17 5 WRNTSVC WARRANT SERVICE 8 7 Department: 1271 870 Overall: 1271 871 0711612015 01:33:41 Page 2 of 2 VERNON POLICE DEPARTMENT Police Activity Report Period Ending: 07/15/15 TRAFFIC COLLISIONS NO. PROPERTY RECOVERED TOTAL 10 VEHICLES: $18,800.00 NON-INJURY 7 INJURY 3 Pedestrian Fatalities City Property Damage 2 Hit& Run(Misdemeanor) 3 Hit& Run(Felony) Persons Injured 4 VEHICLES STORED PROPERTY RECOVERED FOR Unlicensed Driver 47 OTHER DEPARTMENTS Abandoned/Stored Vehicle 20 VEHICLES: $35,000.00 Traffic Hazard CITATIONS Citations Iss (Prisoner Release) 11 Citations Iss (Moving) 168 Citations Iss (Parking) 17 Citations Iss (Total) 185 Hazardous 54 Non-Hazardous 113 Other Violations 1 CASES CLEARED BY ARREST AR15-166 CR15-1086 20001(A) VC AR15-167 CR15-1141 11377(A) HS AR15-171 CR15-1149 594(A)PC AR15-174 CR15-1155 484(A) PC AR15-177 CR15-1178 11364 HS VERNON POLICE DEPARTMENT REPORT FOR PERSONS ARRESTED PERIOD ENDING 07/15/15 ADULT FELONY ARRESTS AND DISPOSITIONS MALE FEMALE TOTAL ASSAULT WITH A DEADLY WEAPON BURGLARY CRIMINAL THREATS EMBEZZLEMENT FORGED OFFICIAL SEAL HIT AND RUN 1 1 POSS. CTRLD SUBSTANCE TO SELL POSS. STOLEN PROPERTY RESISTING ARREST ROBBERY VEHICLE THEFT WARRANT(BENCH) TOTAL FELONY ARRESTS 1 0 1 ADULT MISDEMEANOR ARRESTS AND DISPOSITIONS MALE FEMALE TOTAL BATTERY CRIMINAL THREATS DRIVING UNDER THE INFLUENCE 2 2 DRUNK IN PUBLIC PETTY THEFT 1 1 POSS. CONTROLLED SUBSTANCE 1 1 POSS. NARC. PARAPHERNALIA 1 1 TRESPASSING VANDALISM 1 1 WARRANTS (BENCH/TRFC} 5 1 6 WARRANTS (FOREIGN) 3 1 4 TOTAL MISD. ARRESTS 14 L 2 16 JUVENILES DETAINED --- FELONY AND MISDEMEANOR MALE FEMALE TOTAL BURGLARY PETTY THEFT POSS. STOLEN PROPERTY VANDALISM VEHICLE THEFT 'TOTAL JUVENILES DET. 0 1 0 0 TOTAL FELONY ARRESTS(ADULT)TO DATE: 54 TOTAL MISDEMEANOR ARRESTS(ADULT)TO DATE: 125 TOTAL JUVENILES DETAINED (FELONY AND MISDEMEANOR)TO DATE: 0 TOTAL ARRESTS AND DETAINED JUVENILES (FELONY AND MISDEMEANOR)TO DATE: 179 M Ni, a o O OO MO O r O d 0 M LO V M N M fV N M Ol _ 6 0 4 0 0 0 0 O " .�O M .�1 M .�M � G7 a U Q CS, o a rCU � ^U t Q y `• �r 'QM ref Er tt Q C, co �L t ! 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City of Vernon Building Department 4 : Monthly Report from 6/1/2015 to 6130/2015 Type Value #of Permits Demolition $10,000.00 1 Electrical $576,775.00 17 Grading $120,000.00 1 Industrial- Remodel $919,000.00 4 Industrial - New $13,085,580.00 3 Mechanical $268,271.00 8 Miscellaneous $1,483,000.00 10 Plumbing $298,133.00 9 Roof $270,800.00 3 June 2015 TOTALS PERMITS: $17,031,559 00 56 PREVIOUS MONTHS TOTAL $23,175,155.00 472 YEAR TO DATE TOTAL $40,206,714.00 528 June 2014 TOTALS PERMITS: $2,360.737.00 107 PREVIOUS MONTHS TOTAL $36,138,671.00 526 PRIOR YEAR TO DATE TOTAL $38,499,408.00 633 A/ a evin Wilson Director of Public Works, Water& Development Services City of Vernon Building Department Major Projects from 611/2015 to 6/30/2015 Valuations>20,000 Permit No. Project Address Tenant Description Job Value Electrical B00-090-387 5119 DISTRICT BLVD New Building Electrical for tenant $49,562 APN 6314003900 improvement. B00-090-391 5201 DISTRICT BLVD New Building Electrical for tenant S28,002 APN 6314001900 improvement. B00-090-394 5275 DISTRICT BLVD New Building Electrical for new building. $39.643 APN 6314001902 3 Record(s) $117,207.00 Grading B-2015-0028 3200 SLAUSON AVE Regrading paving site, stormwater to $120,000 APN 6310027023 support redevelopment B-00-090-527 1 Record(s) $120,000.00 Industrial -Remodel B-2015-0179 2311 48TH ST Core-Mark Internatio Ti-Install new refrigerated space S700,000 APN 6308014027 inside existing warehouse B-2015-0232 4333 MAYWOOD AVE Fresh Packing Corp Tenant Improvement-enlarging $100,000 APN 6304021019 loading dock gate opening, retracting dock landing (slab removed)into the interior of bldg and new ADA Restrooms B-2015-0247 4333 MAYWOOD AVE Fresh Packing Corp. New 6,826 sq ft.walk-in cooler_ $100,000 APN 6304021019 3 Record(s) $900,000.00 Industrial-New B00-090-137 5275 DISTRICT BLVD New Building New concrete tilt up building 38,376 $3,055,498 APN 6314001902 Sq. Ft. B00-090-138 5201 DISTRICT BLVD Vacant New concrete tilt up building 29,096 $2,316,624 APN 6314001020 Sq. Ft. B00-090-139 5119 DISTRICT BLVD New Building New concrete tilt up building 121,098 $7,713,458 APN 6314003900 Sq. Ft. 3 Record(s) $13.085.580.00 Mechanical B00-090-386 5119 DISTRICT BLVD Mechanical for tenant improvement. $64,812 APN 6314003900 B00-090-392 5275 DISTRICT BLVD Mechanical for new building. $51.841 APN 6314001902 B00-090-390 5201 DISTRICT BLVD Mechanical for tenant improvement $36,618 APN 6314001900 Permit'No. Pro'ectAddress Tenant Description Job Value B-2015-0277 3049 VERNON AVE Replace existing condenser with new $30,000 APN 6303005034 model(new model is 2490 less weight) (Equipment only)file wl B-2015-0275 B-2015-0320 3883 SOTO ST Farmer John New mechanical units $45,000 APN 6302020059 Record(s) $228.271.00 Miscellaneous B-2015-0055 2555 E 52ND ST T-Mobile Install(3)new antennas, install(3) $20,000 APN 6309009802 new RRU's, Relocate(3)existing antennas, Paint to match B00-090-556 B-2015-0150 5000 PACIFIC BLVD Whole Foods Installation of racks --storage hieght $980,000 APN 6308003901 for room 301 is 28 feet--storage hieght for rooms 302-309 is 38 feet B-2015-0269 4310 BANDINI BLVD Ryerson Inc. Foundation for racks $350,000 APN 6304004019 B-2015-0355 5208 ALCOA AVE Replacing asphalt with 6"concrete $75,000 APN 6310002035 slab, 2500 PSI. 4 Record;s� $1.425.000.00 Plumbing B00-090-393 5201 DISTRICT BLVD Plumbing for tenant improvement $24,771 APN 6314001900 B00-090-388 5119 DISTRICT BLVD Plumbing for tenant improvement. $43,843 APN 6314003900 B00-090-389 5275 DISTRICT BLVD Plumbing for new building. $35,069 APN 6314001902 B-2015-0300 4490 AYERS AVE New building Plumbing for new building and $139,000 APN 6304001023 landscape piping B-2015-0309 3251 26TH ST Unicolor Restroom Remodel and Breakroom $30,000 APN 5169033016 Kitchen 5 Record(s) $272,683.00 Roof B-2015-0414 3425 VERNON AVE reroofing over existing single flight roof $250,000 APN 6303007026 membrane 1 Record(s) $250.000.00 25 Permit(s) Total Valuation: $16,398,741.00 40�� Samuel Kevin Wilson Director of Public Works,Water& Development Services City of Vernon Building Department New Buildings Report-June 2015 5119 District Blvd. Inside Redevelopment Area 121,098 Sq. Ft. 5201 District Blvd. Inside Redevelopment Area 29,096 Sq- Ft. 5275 District Blvd Inside Redevelopment Area 38,376 Sq. Ft. -21 Sarfi6eldfevin Wilson Director of Public Works, Water& Development Services 1 City of Vernon Building Department Demolition Report-June 2015 NONE '�/ww 19 IF Sam el Kevin Wilson Director of Public Works, Water,&Development Services City ofVernon Building Department Status my Certificates wf Occupancy Requests Month of June 2O15 Request for Inspection 38 Approved 11 Pending 2" Temporary Occupancies 35 Al Director uf Public Works, VVater& Development Services City of Vernon Certificate of Occupancy Applications Date From 6/1/2015 to 6/30/2015 Issued Permit No. Project Address Tenant Description Fees Paid Square Feet Certificate of Occupancy C-2015-0113 2537 27TH ST Martinez Trucking&Logistics Warehouse of steel $815.00 76,000 APN 6302003019 Inc. products C-2015-0115 2336 38TH ST Made in House, Inc. Finishing and storage $300 00 5.000 APN 6302015010 of garments. C-2015-0116 5720 2ND ST lmpo-Edge Textile,Inc. Import fabric $300.00 1.700 APN 6308019032 wholesale warehousing C-2015-0117 5993 MALBURG WAY Handbag Kangaroo Inc. Whole sale and $689.00 6.113 APN 6310027046 storage of handbags. C-2015-011a 4789 LOMA VISTA AVE Nuconic Packaging Storage of finished $689.00 23,717 APN 6304025029 plastic packaging C-2015-0119 3232 WASHINGTON BLVD Softree Inc. Warehousing of $689 00 45,000 APN 5169023038 garments C-2015-0120 2425 38TH ST Essential Decor and Beyond Me Showroom and office $689.00 20,000 APN 6302019022 use C-2015-0121 2067 55TH ST Essential Decor&Beyond Inc. Warehouse garments $689.00 50,000 APN 6308016027 C-2015-0124 2622 ALAMEDA ST American Total Express Inc Warehouse and $689.00 35,000 APN 6302009038 distribute food C-2015-0125 2895 SACO ST Modernica Furniture samples $300.00 4,000 APN 6302010002 C-2015-0126 3301 LEONIS BLVD Cap Export Storage furniture $689.00 42,350 APN 6303019012 C-2015-0127 1925 VERNON AVE Verizon Wireles Cell site $300 00 100 APN 6302017052 C-2015-0128 5000 HAMPTON ST Precision Agrilechnoiogies LLC Processing produce. $689 00 9.160 APN 6308010026 (New Building) C-2015-0129 5000 PACIFIC BLVD Mrs Gooch's Natural Foods Grocery food $0 00 130.204 APN 6308003901 distribution/New bldg. C-2015-0130 4592 48TH ST Legend Apparel LLC Distribution of $669.00 10.080 APN 6304018023 apparel C-2015-0131 5699 DISTRICT BLVD Millennium Products, Inc Warehouse $689 00 32,850 APN 6314020030 beverages C-2015-0132 3003 LEONIS BLVD Alcon Import Wholesale general $689 00 11,300 APN 6303021010 merchandise C-2015-0133 3864 SANTA FE AVE AGS USA LLC Warehouse storage. $689,00 5,300 APN 6302018003 C-2015-0134 2640 26TH ST Entry dba AH-B Storage garments $689 00 39,800 APN 6302001028 C-2015-0135 5075 SANTA FE AVE Green Cutting Cutting fabrics $689.00 8,000 APN 6308016013 C-2015-0137 1935 55TH ST S&J Apparel Garment $689 00 35,000 APN 6308016027 manufacturing C-2015-0138 4334 SANTA FE AVE Y2T Imports LLC Warehouse general $300.00 2.500 APN 6308006004 merchandise 15sueX ' 'Permit No. Proiect Address Tenant Description Fees Paid Sauare Feet C-2015-0139 4523 50TH ST D,W,R,Textile Wiping cloth $689 00 15,900 APN 6304017011 manufacturing C-2015-0140 2021 46TH ST Ponti Inc, Garment manufacture $689 00 28,337 APN 5308013032 C-2015-0141 2043 ROSS ST Business Trucking Service, LLC Truck storage and $689.00 12,024 APN 6302011013 repair C-2015-0142 6115 MALBURG WAY Box-N-Go,LLC Warehousing vaults $689.00 31,562 APN 6310027051 C-2015-0143 4700 BOYLE AVE Craftsman Lab,Inc. sewing factory. $689 00 11,000 APN 6303020010 C-2015-0144 3864 SANTA FE AVE Hadley&Bennett Warehouse aprons $689 00 11.350 APN 6302018003 C-2015-0145 3864 SANTA FE AVE AGS USA,LLC Warehouse $689 00 5,300 APN 6302018003 C-2015-0146 4900 CORONA AVE Shalom B. LLC Warehouse fabric $815.00 52,090 APN 6304016007 C-2015-0147 4621 50TH ST Nightlife Decor Inc. Furniture $689 00 9.410 APN 6304017011 manufacturing C-2015-0150 4700 DISTRICT BLVD Karlsson Group Art fabrication/light $689.00 10,600 APN 6304015001 manufacturing C-2015-0151 1930 51ST ST You-Want-A-Deal inc Storage of small $589.00 23,000 APN 6308016005 kitchen appliances C-2015-0152 4732 26TH ST US BATTA Bottling alcoholic $689.00 9,000 APN 6332001004 beverages C-2015-0153 5001 SANTA FE AVE Protect From Fire Service fire $300.00 2,000 APN 6308015009 extinguishers C-2015-0114 2316 38TH ST Fashionpin,Inc Warehousing of $300A0 2,468 APN 6302015012 fabric C-2015-0123 2570 25TH ST MB Produce LLC Office use MOM 156 APN 5168025032 C-2015-0136 5970 ALCOA AVE OFI Imports, Inc.dba Contessa Processing and $1,630 00 61.496 APN 6310027039 Premium Foods warehousing of frozen food 38 Record(s) Total for Certificate of Occupancy: 523,574.00 878,867.00 38 Permits(s) Total Fees Paid $23,574.00 City of Vernon Certificate of Occupancy Issued Date From 6/1/2015 to 6/30/2015 Issued Permit No. Project Address Tenant Descripti Fees Paid Square Feet Certificate of Occupancy 6/17/2015 C-2015-0089 5704 SANTA FE AVE PG-R Designer Wear Inc, Garment $300.00 1,250 APN 6309007011 dba CC Trims& Embellishing 6/24/2015 COO-003-496 4375 BANDINI BLVD Clorox USA Inc. Manufacturing $200.00 133,000 APN 5243018014 of bleach. 6/24/2015 C-2015-0095 3700 SANTA FE AVE BJ21 Textile,Inc. Warehousing $689,00 6,970 APN 6302019028 of garments 6/24/2015 C-2015-0019 2936 46TH ST Morning Star OTC Office use $300 00 200 APN 6303022010 6/24/2015 COO-003-716 1955 48TH ST Kelley Toy USA Inc Warehousing $689 00 25,760 APN 6308014025 of stuff toys 6/25/2015 C-2015-0071 5455 BOYLE AVE Axex Inc_ Warehousing $689 00 17,280 APN 6310010014 of general merchandise 6/25/2015 C-2015-0083 2406 28TH ST District Denim,Inc. Garment $300 00 1,500 APN 6302005004 Manufacturing 6/25/2015 C-2015-0101 3870 SEVILLE AVE Goodyear Tire&Rubber Warehousing $300.00 51,780 APN 6302020047 Co.dba Dapper Tire of tires 6/25/2015 C-2015-0102 2213 27TH ST CCTM1,LLC Telecommunic $300.00 625 APN 6302008025 ation cell site 6/25/2015 C-2015-0103 3620 SANTA FE AVE XPIAppleseed Sewing $689.00 5,500 APN 6302005014 manufacturing 6/2512015 C-2015-0114 2316 38TH ST Fashionpin,Inc. Warehousing $300 00 2,468 APN 6302015012 of fabric 11 Record(s) Total for Certificate of Occupancy: $4,756.00 246,333 11 Permits(s) Total Fees Paid $4,756 00 � 5 JUL 2 9 2015 STAFF REPORT CITY CLERK'S OFFICE CITY ADMINISTRATION DATE: August 4, 2015 TO: Honorable Mayor and City Council FROM: Mark C. Whitworth, City Administrator Originator: Kristen Enomoto, Deputy City . dministrator RE: Ratification of Mayor's Appointment of Eligible Individuals to Serve on the Vernon Housing Commission for New Four-Year Terms Beginning August 11, 2015 and Ending June 30, 2019 Recommendation A. Find that ratification of the Mayor's appointment of eligible individuals requested in this staff report is exempt from the California Environmental Quality Act (CEQA) in accordance with Section t5061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment. B. Ratify the Mayor's appointment of the following eligible individuals to serve on the Vernon Housing Commission for new four-year terms beginning August 11, 2015: Mayor's Appointment Eligible Appointment Category John Kriste (Incumbent) Resident (Non-City Council member) Steve Flonman Business Representative Kyle Cooper Business Representative Hector Garcia (Incumbent) Business Employee Background On August 11, 2015, three of the seven seats on the Vernon Housing Commission will become vacant. Pursuant to Section 2.122 of the Vernon Municipal Code, Commission members are selected by the Mayor and ratified by the City Council. In order to broadly publicize the opportunity for the four new Housing Commission terms, City staff posted the attached announcement and interest form on the main page of the City's website and mailed copies to every resident and business within the City's database. Page 1 of 2 Staff received a total of nine completed interest forms (attached) from the following individuals: Candidate Name Eligible Appointment Categoly John Kriste (Incumbent) Resident(Non-City Council member) Carol Menke Resident(Non-City Council member) Reverend Thomas Schweitzer Resident(Non-City Council member) Steve Florman Business Representative Kyle Cooper Business Representative Gulbagh Singh Business Representative Scott Kelrick Business Representative Frank Novak Business Representative Hector J. Garcia(Incumbent) Business Employee In light of the recent passage of Ordinance No. 1230, which reset Housing Commission terms to run concurrent with the City's fiscal year of July 1 through June 30, the four terms covered by this staff report will run from August 11, 2015 (expiration of current terms) through June 30, 2019. Upon City Council ratification of the Mayor's appointments, the City Clerk will timely administer the Oath of Office as necessary. The Commission's next regularly scheduled meeting is on September 9, 2015. Fiscal Impact None. Attachment(s) 1. Announcement to Vernon Residents and Business Representatives or Employees dated June 25, 2015. 2. Prospective Commission Member Interest Form dated June 25, 2015. 3. Nine Completed Interest Forms. Page 2 of 2 of ty 4305 Santa Fe Avenue,Vernon,California 90058 Telephone(323)593-8811 June 25, 2015 TO: Vernon Residents and Representatives or Employees of the Vernon Business Community SUBJECT: Seeking Interested Residents and Business Owners/Operators/Employees to Serve on the Vernon Housing Commission Background. The Vernon Housing Commission was established in July 2011 to provide open and transparent management of Vernon's housing units. The Commission makes recommendations to the City Council regarding leasing, market rental rates, repair and maintenance, and potential divestment and development opportunities. The Commission also develops and implements procedures to effectuate policy objectives established by the City Council. The Commission provides a public forum for residents and other members of the community to address housing related issues and is the fulfillment of a critical element of the City's good governance reforms. The Commission meets on a quarterly basis the second Wednesday of each March,June, September, and December. Composition and Terms. The Commission is comprised of seven members from the Vernon community: three residents, one of whom must be a member of the City Council; three business representatives, each of whom represents a person or entity owning or operating a business or non-residential property located in the City; and one employee of a business located in the City. Commission members serve four year terms beginning in August. No member may serve more than two full four year terms. Upcoming Vacancies and Invitation to Augl_y: The four seats listed below are open for appointment. The City encourages all qualified individuals to apply. Those with an interest in good governance and experience or interest in housing management are especially needed to devote time to this important public body. The Commission is subject to state open meeting laws and regulations related to good government such as the Ralph M. Brown Act and the Political Reform Act. Appointees will be required to submit Statements of Economic Interests(Form 700s)annually. ■ Resident No. 2(Non-City Council) ■ Business Representative No. 1 + Business Representative No. 2 + Business Employee The City Council is expected to make appointments to the Commission in August 2015. To be considered for appointment to the Commission,please complete and submit the attached form by July 14, 2015. For more information on the Vernon Housing Commission and related responsibilities,please refer to Article XVII, Chapter 2, of the Vernon Municipal Code available on the City's website www.ci ofvernon.or ). E,cfusivefy Industnaf of tit# r.tion 4305 Santa Fe Avenue, Vernon,California 90058 Telephone(323)583-8811 VERNON HOUSING COMMISSION Prospective Commission Member Interest Form June 25, 2015 Appointing Category (please circle one): Resident Business Rep Business Employee Name: Business Name (if applicable): Title (if applicable): Vernon Address: Email: Phone: Qualifications and Reasons for Interest in Serving on the Vernon Housing Commission (attach additional sheet if necessary): NOTE: By signing below, you affirm that you meet the requirements of the appointing category you have indicated. Signature: _ NOTE: Please submit completed form by Tuesday. July 14, 2015, at 5:30 p.m. Mail form to: City Administrator's Office, 4305 Santa Fe Avenue, Vernon, CA 90058- Attn: Lilia Hernandez. Email form to: I hem andez(ftimern on.ca.us City of Vernon,4305 Santa Fe Avenue,Vernon,California 90058-Telephone(323)583-8811 t of 010.17 Ott RECEIVED JUL 16 zot5 4305 Santa Fe Avenue, Vernon, California 90058 Ry' t�Y �1��V�/}f 7 Telephone(323) i-SSll [{�[/�� VERNON HOUSING COMMISSION Prospective Commission Member Interest Form June 25, 2015 Appointing Category(please circle one): ; Resident Business Rep Business Employee Name: J-^q A( f'L r-t 5 r i- Business Name (if applicable): Title (if applicable): Vemon Address: Email: Phone: Qualifications and Reasons for Interest in Serving on the Vernon Housing Commission (attach additional sheet if necessary): NOTE: By signing below, you affirm that you meet the requirements of the appointing category you have indicated. Signature: NOTE: Please submit completed form by ruesday. July 14 2015 at 5:30 p.m. Mail form to: City Administrator's Office, 4305 Santa Fe Avenue, Vernon, CA 90058— Attn: Lilia Hernandez. Email form to: Ihemande imernon.ca.us City of Vernon,4305 Santa Fe Avenue,Vemon,California 90058-Telephone(323)583-8811 RECEIVED r 0f JUL C 9 201.5 {� CITY A D M i W STRATI 0 N 4305 Santa Fe Avenue,Vernon,California 90058 Telephone(323)583-8811 VERNON HOUSING COMMISSION Prospective Commission Member Interest Form June 25, 2015 I- ' Appointing Calegory(please circle one): Resident Business Rep Business Employee Name: c- - Business Name(if applicable): Title(if applicable): Vernon Address: Email: Phone: Qualifications and Reasons for Interest in Serving on the Vernon Housing Commission(attach additional sheet if necessary): rr �k,�'�t�, .k r� # �,.��; �.��r �c�.i`'�x ki _r•��-ltil� C Ltd 1 � i'�"1�! [ y son G L N : By signing l elow, )kfu aff« t at you*meet the uirements of the appointing category you have indicated. Signature: NOTE: Please submit completed form by Tuesday, July 14, 2015, at 5:30 12.m; Mail form to: City Administrator's Office, 4305 Santa Fe Avenue, Vernon.CA 90058- Attn: Lillia Hernandez. Email form to: Ihernandeadlcimemon.ra.us City of Vernon,4305 Santa Fe Avenue,Vernon,California 90058-Telephone(323)583-5811 -{of 'RECEIVED ayJUL 0 8 2015 et 'it rrrY ADMINISTRATION 4305 Santa Fe Avenue,Vernon.California 9OMS Telephone(323)5$3--9811 VERNON HOUSING COMMISSION Prospective Commission Member Interest Form June 25, 2015 Appointing Category(please circle one): Reside 4 Business Rep Business Employee Name: f4 c V. Business Name(if applicable): 4 Title(if applicable): Vernon Address Email: Phone Qualifications and Reasons for Interest in Serving on the Vemon Housing Commission(attach additional sheet if necessary): f }� u r 1W ii ' & r f. 3 D C3 L l 4o A o c. b _ NOTE: By signing below, you affirm that you meet the requirements of the appointing category you have indicated. Signature: NOTE: PlResumit MqomiR31eted forMuesday., lul 14 2015 at 5:30 m Mail form to: City Administrators Office, 4305 Santa Fe Avenue,Vernon. CA 90058- Attn: Lilia Hernandez Email form to: Ihernander(W.vernon.ca.us City of Vernon,4305 Santa Fe Avenue,Vernon,California 90058-Telephone(323)583-M Z RECEIVED JUL 0 2 2M5 CITY ADM fgISTRATIU. y � L 4305 Santa Fe Avenue,Vernon,California 900M Telephone(323)583-88I I VERNON HOUSING COMMISSION Prospective Commission Member Interest Form June 25, 2015 Appointing Category(please circle one): Residen�t]� rha s Rep Business Employee Name: �C ►^' ' r Business Name(if applicable): ( Iz Title(if applicable): ,/ ,Q 1 Vernon Address: ? Email Phone: Oualifications and Reasons for Interest in Serving on the Vernon Housing Commission(attach , F additional t if necessary): /\ f. 1 r ` A ��A NOTE: y�ep, r"' slow, t t you r�at the re jU� �ls of the appointing category you have indicate Signature: Nu. •..,.t s�I rt i� --tl IIn�s i L+T� NOTE: Please se e form +xas a u 14 2015 at 5.30 r].rrfi. \ . O'er C u1_ Mail form to: City Administrator's Office,4305 Santa Fa Avenuo. Vernon, CA 9005a- N Attn: Lilia Hernandez- Email form to: IhemandwAcimemon.ca.us City of Vemon,4305 Santa Fe Avenue,Vernon,California 90058-"telephone(323)583-8811 Hernandez, Lilia From: Sent: Thursday,July 02, 2015 12:14 PM To: Hernandez, Lilia Subject: Housing Commission Application Attachments: Vernon Commission.pdf Hi Ms. Hernandez, Attached is a brief summary regarding "Housing Commission Member Interest" I have been working as a Occupational Physician in Vernon since 1989 serving over 600 of Vernon's employers, The City of Vernon and the Vernon Police Department since 1989. I have deep roots in the city of Vernon. I am the owner of Stacy Medical Center and have the honor of offering medical services to over 6,000 Vernon employees and business owners annually. I have developed a deep understanding of the needs of employers and their workers. In the time of need, I made numerous trips to Sacramento with our business partners to lobby, fighting hard to keep Vernon - "Vernon". I am the developer and owner of numerous properties spaning fron Hawaii to North Carolina and actively manage our California apartment buibuildingsldings. I believe in Sustainability and proved my dedication to the cause by installing a 68kW solar power generating plant on our Vernon Wells Fargo poperty I am a neutral party and have no interest or intention in developing residential properties in the City of Vernon. As a occupational / environmental physician I understand the potential hazards in our heavily Industrial environment. I want assist the City Commission in working through any environmental issues that may arise during the planing phase, minimizing impact the surrounding businesses he heart of our community. the on our Steven H. Flormen, M.D. Diplomate, American Academy of Pain Management Fellow,American Academy of Disability Evaluating Physicians Certified Medical Examiner FMCSA #7898563372 Exp. 1/2024 Certified Medical Review Officer#011021228 Licensed Radiography &Fluoroscopy Supervisor/Operator 1 RECEIVED "U 0r ' CITY ADMINISTRATION r` 4305 Santa Fe Avenue,Vernon,California 90058 Telephone(323)583-M 1 VERNON HOUSING COMMISSION Prospective Commission Member Interest Form June 25, 2015 F Appointing Category(please circle one): Resident $usin Red Business Employee Name: 4 Business Name(if applicable): IVO-Glk Title(if applicable): f Vernon Address: L i V 4kVIC y1] CCt '1005 Email: Phone: Qualifications and Reasons for Interest in Serving on the Vernon Housing Commission (attach additional sheet if necessary): MOTE: By sign' below, u affirm tl~at u meet the r"uirements of the appointng aategary you have indicate Signature- NOTE: P}ease submit completed form by Tuesday. Jujy 14, 2015 at 5,30 P,rn. Mail form to: City Administrator's Office,4305 Santa Fe Avenue, Vernon, CA 90058- Attn; U11a Hernandez Email form to: ihemande imemon_ca.us City of Vernon,4305 Santa Fe Avenue,Vernon,California 90058-Telephone(323)583-8811 CtF- Cooper%Cow (Foods, bm- City of Vernon Vernon Housing Commission cilia Hernandez 4305 Santa Fe Avenue Vemon,Ca.90058 Dear Mrs. Hernandez, I am writing in regards to the letter I received for the Vernon residents and Representatives or Employees of the Vernon Business Community. I would like to apply for one of the Business Representative seats. Our company has been located in Vernon for a few years now and I have grown to love this city. I feel there Is much to offer here but that the city is very undervalued. Housing here offers employees the comfort of living,working,and educating their children all within a few mlles of each other;and in this day in age,is unheard of. Please consider me for one of the open appointment as I will work hard to help the housing in this city. Since-el Cooper's Cold Foods, Inc. Cooper's Cold Foods,inc. 4510 Seville Avenue Vernon,Ca. 90058 323-584-4440 323-582-5662(Fax) ti , RECEIVED c. , 1UI. 112011 CI TY ADM INISTRA711W 4305 Santa Fe Avenue,Vernon,California 90058 Telephone(323)583-8811 VERNON HOUSING COMMISSION Prospective Commission Member Interest Form June 25, 2015 Appointing Category(please circle one): yResident BEirte--A::R�!pBusiness Employee Name: G1 UL- if Business Name(if applicable): E T I V�l j JI4 Title(if applicable): Vernon Address: -r3 � q -13 LV1 . Vty-'A" C* --1 p0 59 r Email: Prone: Qualifications and Reasons for Interest in Serving on the Vernon Housing Commission(attach i additional sheet' necessary): +{},2 y - NOTE: By signing below, you affirm that you meet the regViremems of the appointing category you have indicated. Signature: NOTE: Please submit comcleted form by TuesdaX, July,14, 2015, at 5-30 P,m- Mail form to: City Administrator's Office, 4305 Santa Fe Avenue, Vernon, CA 90058- Attn: !_ilia Hemandez. Email form to: Ihernandez9Dci.vernon.ca.us City of Vernon,4305 Santa Fe Avenue,Vernon,California 90058-Telephone(323)58.3-8811 RECEIVED 4305 Santa Fe Avenue,Vernon,California 90058 Telephone(323)583-8811 WVAD&I!NIS[Rgjj0�.t VERNON HOUSING COMMISSION Prospective Commission Member Interest Form June 25, 2015 Appointing Category(please circle one): Resident Business Rep Business Employee Name: 46T'T' } Lt_P�1C -- - PE 09 r )A E TAL, !riC ') Business Name (if applicable): +� 9 L.LC (D%A A��T ALT R _ z Title(if applicable): 51DENr of '4AL tS-CATf; --- — VemonAddress: a165 EAST a6 STMEr Email: Phone: Qualifications and Reasons for Interest in Serving on the Vernon Housing Commission (attach additional sheet if necessary): �LEpSE :SEi= ATTA ED SHEET NOTE: By signing below, you affirm that you meet the requirements of the appointing category you have indicated. Signature: NOTE: Please submit completed form by Tuesday, July 14 2015 at 5:30 pjr, Mail form to: City Administrator's Office, 4305 Santa Fe Avenue, Vernon, CA 90058- Attn: Lilia Hernandez. Email form to: Ihernande ci.vernonx-a.us City of Vernon,4305 Santa Fe Avenue,Vernon,Califomia 90058-Telephone(323)583-8811 RECEMED July 7, 2015 �.i4�.J'4 To Whom It May Concern I wish to serve as a Business Representative on the Vernon Housing Commission given my background and education in housing policy. My interest in residential real estate started at age 16,when I worked for an apartment developer. During this experience, I began to learn about the intricacies of private enterprise working in coordination with public policy. That initial exposure led me to study Real Estate and Urban Development at the University of Pennsylvania. I focused on various aspects of real estate,taking courses such as Urban Public Policy and Private Economic Development, Urban Redevelopment, International Housing Comparisons, as well as Urban Markets and Residential Development. After college, I worked as an investment banker covering the homebuilding sector, and today, I serve as the Vice President of Alpert Properties. During my career, I have seen the extremes of real estate cycles and have learned how best to manage properties, transactions and relationships during both good and bad economic times. I would like to join the Housing Commission as Vemon begins to to expand its residential community with Vernon Village Park Apartments. Given my background and interest in residential real estate, I would be a key asset to Vernon's Housing Commission. Thank you for your consideration, Scott Scott Kelrick RECEIVED ;UL 13 2015 f CITY AJ'��l;1lSTftA�ldi� r- 4 . 43M Santa Fe Avenue,Vernon,California 90058 Telephone(M- )5&WMI VERNON HOUSING COMMISSION Prospective Commission Member Interest Form June 25, 2015 Appointing Category(please circle one): Resident Business Rep Business Employee Name. ��1 Business Name(if applicanle): Title(if applicable): G U" 0{-C//t/it , Vernon Address: L' C 0 � - Email: Phone: Qualifications and Reasons for Interest in Serving on the Vernon Housing Commission(attach additional sheet if necessary): NOTE: By signing below. you affirm that you meet the requirements of the appointing category you have indAW Signatur NOTE: d form by 7Ljosday,july14 2i]t5 at 5:30 p.m- Mail form to: City Administrator's Office,4305 Santa Fe Avenue.Vernon.CA 90058- Attn: cilia Hernandez Email form to: lhema ".vernon.ra.us City of Vernon,4305 Santa Fe Avenue,Vernon,California 90058-Telephone(323)583-8811 From: Frank Novak Sent: Monday,July 13, 2015 10-42 A To: Hernandez, Lilia Subject: Fwd: housing Commission Application Begin forwarded I Prc As a property and business owner based in Vernon, I would like to take a more active role in the development of it as a role model for the nation. Having a housing program with clear goals will help crate a firewall against criticism from Sacramento.This is vital for securing Vernon's autonomy. I and my brother Jay founded Modernica,a design and Manufacturing company 25 years ago. I would like to contribute my knowledge of design to the betterment of Vernon.Why not build exceptional LEED certified housing with ample green spaces,far above and beyond what is'expected'. Build housing that is so exceptional,that it gets widely published and serves as a calling card for the city's exceptionalism. 3 F-Of Sr i i F IVED JUL 16 lib CITY ADM I INISTRATI M 4305 Santa Fe Avenue,Vernon,California 900M Telephone(323)SM-8811 VERNON HOUSING COMMISSION Prospective Commission Member Interest Form June 25, 2015 Appointing Category(please circle one): Resident Business Rep (Business Employe (dame: Hector J.Garda Business Name(if applicable): c,-jpWhQft par.�t___,_,nn.1.1 C TIIIe(if applicable): Fmrtmnmenta!F-noloner Vernon Address: 3049 E.Vernon Vemon.CA 90058 Email: Phone: Qualifications and Reasons for Interest In Serving on the Vernon Housing Commission(attach additional sheet if necessary): Past camas%koner for both the Vernon Hau&Oci and the Vamon Groan Commission. NOTE: By signing below,you affirm that you meet the requirements of the appointing category you have Indicated. Signature: NOTE: PleWmcomoleted orm by Tuasday. July 14, 2015 at 5,30 P,rn Mall form to: City Administrator's Office,4305 Santa Fe Avenue,Vernon,CA 90058- Attn: Lilia Hernandez. Email form to; l.harriandazr{itof,vornan,ca.us City of Vemon,4305 Santa Fe Avenue,Vernon,Califomia 90tK8—Telephone(323)5R3-8811 v RECEIVED 5 JUL 2 9 2015 }� . : CITY CLERK'S OFFICE STAFF REPORT CITY ADMINISTRATION DATE: August 4,2015 TO: Honorable Mayor and City Council FROM: Mark C. Whitworth, City Administrato Originator: Kristen Enomoto,Deputy City nistrator RE: Proposed "Opt-Out" Opportunity for Vernon Tenants Impacted by the Vernon Housing Remodel Project Recommendation A. Find that approval and authorization of the proposed "opt-out" option related to the remodel of City-owned housing units is exempt under the California Environmental Quality Act ("CEQA") in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and B. Approve and authorize staff to provide the seven tenants impacted by the proposed Vernon Housing Remodel Project an"opt-out" opportunity. Background On April 7, 2015, in response to a recommendation from the Vernon Housing Commission, the City Council directed staff to facilitate the remodel of the seven City-owned housing units in Vernon that were not remodeled as part of the 2007/2008 remodel of all other City-owned housing units in Vernon to the standard utilized in 2007/2008. At the same time, the City Council directed staff to utilize the two City-owned condos in Huntington Park for the temporary relocation of tenants that will need to be displaced during the remodel work. As staff has verbally reported at subsequent City Council meetings, several developments have occurred since the April 7`h City Council meeting causing staff to re-evaluate its approach to certain aspects of the remodel project. This staff report addresses the first of those developments and a new related concern. On or about June 17, 2015, the City received a letter from one of the tenants who would be impacted by the proposed remodel project expressing concern about the impact a temporary relocation would have on him and his spouse due to their age and medical and physical conditions. As such, the tenant requested his unit be placed last on the remodel list. (Pursuant to the lottery conducted by the Housing Commission on June 10, 2015, this unit was placed first on Page 1 of 2 the remodel list.) Upon consideration of the request and consultation with legal counsel, staff believed it was appropriate to move this unit to the end of the remodel schedule and re-evaluate the situation upon reaching that point in the schedule. Upon further discussion with legal counsel, and in an effort to be as fair as possible to all tenants, staff believes it would be appropriate to provide a one-time "opt-out" opportunity to each of the seven tenants who would be impacted by the remodel project. Staff recommends such an option be provided to all seven tenants simultaneously, prior to the drafting of the bid notice for the remodel work, and that such option be available at this time only. For tenants that "apt-in," the remodel activities would proceed consistent with the City Council's April 7`b directive. For tenants that "opt-out,"the City would remodel those units, consistent with the remodel standards established in 2007/2008, when the current tenants vacate those units. Fiscal Impact The fiscal impact that may result based on the recommendations in this staff report are not specifically known at this time. However, the remodel of each housing unit is currently anticipated to cost approximately $100,000 — $120,000, and it's anticipated that remodel costs would be higher in the future. It is also anticipated that on-going maintenance and repair costs will be higher for non-remodeled units than they are for remodeled units. Lastly, remodeled units rent for higher amounts than non-remodeled units, so total rental income is impacted by the total number of remodeled units. Attachment(s) None. Page 2 of 2 v i E EWER RE C, f E n JUL 2 9 201 JUL S .� '� STAFF REPORT CITYCLEKif 6N� i'F FIRE DEPARTMENT CITY A D J[f l TRA I«N DATE: August 4, 2015 TO: Honorable Mayor and City Council FROM: Michael A. Wilson,Fire Chief Originator: Adriana Ramos,Administrative Secretary RE: A Resolution of the City Council of the City of Vernon Establishing the Terms Set with Oshkosh Capital for the Ten (10) Year Lease-Purchase Agreement Recommendation A. Find that approval of the resolution proposed in this staff report is exempt from California Environmental Quality Act("CEQA")review, because it is an administrative purchasing activity that will not result in direct or indirect physical changes in the environment, and therefore does not constitute a "project" as defined by CEQA Guidelines section 15378. Furthermore, even if it were a project, because such activity will not have any effect on the environment,this action would be exempt from CEQA review pursuant to CEQA Guidelines Section 15061(b)(3),the general rule that CEQA only applies to projects that may have an effect on the environment; and B. Adopt the attached resolution establishing the terms set with Oshkosh Capital for the recently approved ten (10) year Lease-Purchase Agreement for two (2) 2016 Pierce PUC Triple Combination Pumpers. Background On July 21, 2015 the City of Vernon City Council approved and authorize the execution of a ten(10) year Lease-Purchase Agreement with Oshkosh Capital in the amount of$1,321,836.49, for two (2) 2016 Pierce PUC Triple Combination Pumpers, to be supplied from Pierce Manufacturing Inc., for the Fire Department that will replace two current engines that were purchased in 1989 and no longer meet the needs of the department. Oshkosh Capital is requesting that the City adopt a resolution establishing the terms set within the Lease-Purchase Agreement. Fiscal Impact There is no fiscal impact associated with the proposed resolution. Page 1 of 2 Attachment(s) 1. Proposed resolution with partially executed Master Lease-Purchase Agreement between City of Vernon and Oshkosh Capital Page 2 of 2 RESOLUTION NO . A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON APPROVING AND AUTHORIZING THE EXECUTION OF A MASTER LEASE PURCHASE AGREEMENT BY AND BETWEEN THE CITY OF VERNON AND OSHKOSH CAPITAL FOR TWO 2016 PIERCE PUC TRIPLE COMBINATION PUMPERS WHEREAS, the City of Vernon (the "City" ) , is a municipal corporation and a chartered city of the State of California organized and existing under its Charter and the Constitution of the State of California; and WHEREAS, pursuant to applicable law, the City is authorized to acquire, dispose of and encumber real and personal property, including, without limitation, rights and interest in property, leases and easements necessary to the functions or operations of the City; and WHEREAS, by memorandum dated August 4 , 2015, the Fire Chief has recommended the approval of a Master Lease Purchase Agreement (the "Agreement" ) , for an amount-not-to exceed $1, 321, 836 .49, with Oshkosh Capital for two 2016 Pierce PUC Triple Combination Pumpers, to be supplied from Pierce Manufacturing Inc . , a subsidiary company of Oshkosh Capital, to replace two current engines that were purchased in 1989 and no longer meet the needs of the Fire Department; and WHEREAS, the City Council of the City of Vernon desires to approve the Agreement with Oshkosh Capital . NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS: SECTION 1 : The City Council of the City of Vernon hereby finds and determines that the above recitals are true and correct . SECTION 2 : The City Council of the City of Vernon finds that this action is exempt from California Environmental Quality Act ("CEQA") review, because it is an administrative purchasing activity that will not result in direct or indirect physical changes in the environment, and therefore does not constitute a "project" as defined by CEQA Guidelines section 15378 . Furthermore, even if it were a project, because such activity will not have any effect on the environment, this action would be exempt from CEQA review pursuant to CEQA Guidelines Section 15061 (b) (3) , the general rule that CEQA only applies to projects that may have an effect on the environment . SECTION 3 : The City Council of the City of Vernon hereby approves the Master Lease Purchase Agreement with Oshkosh Capital, in substantially the same form as the copy which is attached hereto as Exhibit A. SECTION 4 : The City Council of the City of Vernon hereby authorizes the Mayor or Mayor Pro-Tem to execute said Agreement for, and on behalf of , the City of Vernon and the City Clerk, or Deputy City Clerk, is hereby authorized to attest thereto. SECTION 5 : The City Council of the City of Vernon hereby instructs the City Administrator, or his designee, to take whatever actions are deemed necessary or desirable for the purpose of implementing and carrying out the purposes of this Resolution and the transactions herein approved or authorized, including but not limited to, any non-substantive changes to the Agreement attached herein. SECTION 6 : The City Council of the City of Vernon hereby directs the City Clerk, or the Deputy City Clerk, to send a fully executed Agreement to Oshkosh Capital . - 2 - SECTION 7 : The City Clerk, or Deputy City Clerk, of the City of Vernon shall certify to the passage, approval and adoption of this resolution, and the City Clerk, or Deputy City Clerk, of the City of Vernon shall cause this resolution and the City Clerk' s, or Deputy City Clerk' s, certification to be entered in the File of Resolutions of the Council of this City. APPROVED AND ADOPTED this 4tb day of August, 2015 . Name : Title : Mayor / Mayor Pro-Tem ATTEST: City Clerk / Deputy City Clerk APPROVED AS TO FORM: Brian Byun, Deputy City Attorney - 3 - STATE OF CALIFORNIA ) ss COUNTY OF LOS ANGELES ) 1, City Clerk / Deputy City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. , was duly passed, approved and adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Tuesday, August 4, 2015, and thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon. Executed this day of August, 2015 , at Vernon, California. City Clerk / Deputy City Clerk (SEAL) 4 EXHIBIT A Master Lease-Purchase Agreement Between City of Vernon and Oshkosh Capital E05 Master Lease-Purchase Agreement Between CITY OF VERNON AND OSHKOSH CAPITAL DOCUMENT INDEX ❑ Master Lease-Purchase Agreement— Sign and provide title on the last page ❑ Lease Schedule with Schedule A-1 —Sign and title ❑ Vehicle Schedule Addendum —Sign and title ❑ Incumbency Certificate and Resolution— List your authorized signor(s) and title(s); have secretary or appropriate trustee attest to the information and signature(s) provided by signing and printing his/her name, title and date. The person who validates the signatures should not sign the lease documents. The resolution must reflect the title(s) of the individual(s) who have authorization to sign the documents. ❑ Opinion of Counsel Letter— Enclosed is a template_ Please ask your attorney to prepare on his/her letterhead, and include all of the items in the template. ❑ Title -The terms of your contract specify that the Lender be listed as the lienholder and hold the original title during the term of the lease. In addition, we will need a copy of the front and back of the MSO listing Oshkosh Capital, 995 Dalton Ave, Cincinnati, OH 45203 as first lien holder. ❑ Insurance Request Form — Fill in your insurer's information and sign. Please contact your insurer, prior to delivery, to obtain a certificate of insurance. Please enclose the certificate with the signed documentation or have the insurer fax the certificate directly to me. ❑ Three Party Agreement— Sign and title. ❑ Delivery & Acceptance Certificate — At point of delivery, fill out this form and fax it to me. Please return the original via US Postal Service. ❑ IRS FORM 8038-G — Sign, date, and title ❑ Minutes of Governing Body (approving the purchase & finance of equipment) — Please return a copy with the documents. ❑ Sales Contract or Purchase Order - please provide a copy of the Sales Contract enter into with Pierce Manufacturing or a copy of the Purchase Order issued to Pierce Manufacturing Inc. - 1 - E05 MASTER LEASE - PURCHASE AGREEMENT Dated as of July 24, 2015 This Master Lease-Purchase Agreement together with all addenda, riders and attachments hereto, as the same may from time to time be amended, modified or supplemented ("Master Lease") is made and entered by and between Oshkosh Capital ("Lessor") and the Lessee identified below ("Lessee"). LESSEE: Cq of Vemon 1 LEASE OF EQUIPMENT. Subject to the terms and conditions of this Master Lease, Lessor agrees to lease to Lessee, and Lessee agrees to lease from Lessor, all Equipment described in each Schedule signed from time to time by Lessee and Lessor. 2_ CERTAIN DEFINITIONS. All terms defined in the Lease are equally applicable to both the singular and plural form of such terms. (a) "Schedule" means each Lease Schedule signed and delivered by Lessee and Lessor, together with all addenda, riders, attachments, certificates and exhibits thereto, as the same may from time to time be amended, modified or supplemented_ Lessee and Lessor agree that each Schedule (except as expressly provided in said Schedule) incorporates by reference all of the terms and conditions of the Master Lease. (b) "Lease" means each Schedule and this Master Lease as incorporated into said Schedule. (c) "Equipment" means the property described in each Schedule, together with all attachments, additions, accessions, parts, repairs, improvements, replacements and substitutions thereto_ (d) "Lien" means any security interest, lien, mortgage, pledge, encumbrance, judgment, execution, attachment, warrant, writ, levy, other judicial process or claim of any nature whatsoever by or of any person_ 3. LEASE TERM. The term of the lease of the Equipment described in each Lease ("Lease Term") commences on the first date any of such Equipment is accepted by Lessee pursuant to Section 5 hereof and, unless earlier terminated as expressly provided in the Lease, continues until Lessee's payment and performance in full of all of Lessee's obligations under the Lease. 4. RENT PAYMENTS- 4-1 For each Lease, Lessee agrees to pay to Lessor the rent payments in the amounts and at the times as set forth in the Schedule A-1 attached to the Schedule ("Rent Payments"). A portion of each Rent Payment is paid as and represents the payment of interest as set forth in the Schedule A-1. Rent Payments will be payable for the Lease Term in U.S_ dollars, without notice or demand at the office of Lessor(or such other place as Lessor may designate from time to time in writing). 4.2 If Lessor receives any payment from Lessee after the due date, Lessee shall pay Lessor on demand as a late charge five per cent (5%) of such overdue amount, limited, however, to the maximum amount allowed by law_ 4.3 EXCEPT AS SPECIFICALLY PROVIDED IN SECTION 6 HEREOF OR IN ANY WRITTEN MODIFICATION TO THE LEASE SIGNED BY LESSOR, THE OBLIGATION TO PAY RENT PAYMENTS UNDER EACH LEASE SHALL BE ABSOLUTE AND UNCONDITIONAL IN ALL EVENTS AND SHALL NOT BE SUBJECT TO ANY SETOFF, DEFENSE, COUNTERCLAIM, ABATEMENT OR RECOUPMENT FOR ANY REASON WHATSOEVER. 5. DELIVERY; ACCEPTANCE; FUNDING CONDITIONS. - 2 - E05 5.1 Lessee shall arrange for the transportation, delivery and installation of all Equipment to the location specified in the Schedule ("Location") by Equipment suppliers ("Suppliers") selected by Lessee_ Lessee shall pay all costs related thereto unless Lessor otherwise agrees to pay such costs as stated in the Schedule. 5.2 Lessee shall accept Equipment as soon as it has been delivered and is operational. Lessee shall evidence its acceptance of any Equipment by signing and delivering to Lessor the applicable Schedule. If Lessee signs and delivers a Schedule and if all Funding Conditions have been satisfied in full, then Lessor will pay or cause to be paid the costs of such Equipment as stated in the Schedule ("Purchase Price")to the applicable Supplier. 5.3 Lessor shall have no obligation to pay any Purchase Price unless all reasonable conditions established by Lessor ("Funding Conditions") have been satisfied, including, without limitation, the following: (a) Lessee has signed and delivered the Schedule and its Schedule A 1; (b) no Event of Default shall have occurred and be continuing; (c) no material adverse change shall have occurred in the Internal Revenue Code of 1986, as amended, and the related regulations and rulings thereunder(collectively, the "Code"); (d) no material adverse change shall have occurred in the financial condition of Lessee or any Supplier; (e) the Equipment is reasonably satisfactory to Lessor and is free and clear of any Liens (except Lessor's Liens); (f)all representations of Lessee in the Lease remain true, accurate and complete; and (g) Lessor has received all of the following documents, which shall be reasonably satisfactory, in form and substance, to Lessor: (1) evidence of insurance coverage required by the Lease, (2) an opinion of Lessee's counsel; (3) reasonably detailed invoices for the Equipment; (4) Uniform Commercial Code (UCC) financing statements; (5) copies of resolutions by Lessee's governing body, duly authorizing the Lease and incumbency certificates for the person(s) who will sign the Lease; (6) such documents and certificates relating to the tax-exempt interest payable under the Lease (including, without limitation, IRS Form 8038G or 8038GC) as Lessor may request; and (7) such other documents and information previously identified by Lessor or otherwise reasonably requested by Lessor. 6. TERMINATION FOR GOVERNMENTAL NON-APPROPRIATIONS. 6.1 For each Lease, Lessee represents and warrants: that it has appropriated and budgeted the necessary funds to make all Rent Payments required pursuant to such Lease for the remainder of the fiscal year in which the Lease Term commences; and that it intends to make Rent Payments for the full Lease Term as scheduled on the applicable Schedule A-1 so long as funds are appropriated in each fiscal year by its governing body. Lessee reasonably believes that moneys in an amount sufficient to make all Rent Payments can and will lawfully be appropriated and made available therefor. All Rent Payments shall be payable out of the general funds of Lessee or out of other funds legally available therefor. Lessor agrees that the Leases will not be general obligations of Lessee and that the Leases shall not constitute pledges of either the full faith and credit of Lessee or the taxing power of Lessee. 6.2 If Lessee's governing body fails to appropriate sufficient funds in any fiscal year for Rent Payments or other payments due under a Lease and if other funds are not available for such payments, then a "Nan-Appropriation Event" shall be deemed to have occurred. if a Non-Appropriation Event occurs, then: (a) Lessee shall give Lessor immediate notice of such Non-Appropriation Event and provide written evidence of such failure by Lessee's governing body; (b) on the Return Date, Lessee shall return to Lessor all, but not less than all, of the Equipment covered by the affected Lease, at Lessee's sole expense, in accordance with Section 21 hereof; and (c) the affected Lease shall terminate on the Return Date without penalty or expense to Lessee, provided, that Lessee shall pay all Rent Payments and other amounts payable under the affected Lease for which funds shall have been appropriated or are otherwise available, provided further, that Lessee shall pay month-to-month rent at the rate set forth in the affected Lease for each month or part thereof that Lessee fails to return the Equipment under this Section 6.2. "Return Date" means the last day of the fiscal year for which appropriations were made for the Rent Payments due under a Lease. 7. NO WARRANTY BY LESSOR. The Equipment is sold "AS IS". LESSEE ACKNOWLEDGES THAT LESSOR DID NOT MANUFACTURE THE EQUIPMENT. LESSOR DOES NOT REPRESENT THE MANUFACTURER, OWNER, OR DEALER, AND LESSEE SELECTED THE EQUIPMENT BASED UPON LESSEE'S OWN JUDGMENT. LESSOR MAKES NO WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR OTHERWISE OR AS TO THE EQUIPMENT'S VALUE, DESIGN, CONDITION, USE, CAPACITY OR - 3 - E05 DURABILITY. LESSEE AGREES THAT REGARDLESS OF CAUSE, LESSOR IS NOT RESPONSIBLE FOR, AND LESSEE WILL NOT MAKE ANY CLAIM AGAINST LESSOR FOR, ANY DAMAGES, WHETHER CONSEQUENTIAL, DIRECT, SPECIAL OR INDIRECT INCURRED BY LESSEE IN CONNECTION WITH THE EQUIPMENT OR THIS MASTER LEASE — LEASE PURCHASE AGREEMENT. NEITHER THE MANUFACTURER, THE DEALER, NOR ANY SALESPERSON, EMPLOYEE OR AGENT OF THE DEALER OR MANUFACTURER, IS LESSOR'S AGENT OR HAS ANY AUTHORITY TO SPEAK FOR LESSOR OR TO BIND LESSOR IN ANY WAY. For and during the Lease Term, Lessor hereby assigns to Lessee any manufacturers or Suppliers product warranties, express or implied, applicable to any Equipment and Lessor authorizes Lessee to obtain the customary services furnished in connection with such warranties at Lessee's sole expense. Lessee agrees that (a) all Equipment will have been purchased by Lessor in accordance with Lessee's specifications from Suppliers selected by Lessee, (b) Lessor is not a manufacturer or dealer of any Equipment and has no liability for the delivery or installation of any Equipment, (c) Lessor assumes no obligation with respect to any manufacturer's or Supplier's product warranties or guaranties, (d) no manufacturer or Supplier or any representative of said parties is an agent of Lessor, and (e) any warranty, representation, guaranty or agreement made by any manufacturer or Supplier or any representative of said parties shall not be binding upon Lessor. 8. TITLE; SECURITY INTEREST. 8.1 Upon Lessee's acceptance of any Equipment under its Lease, title to the Equipment shall vest in Lessee, subject to Lessors security interest therein and all of Lessor's other rights under such Lease including, without limitation, Sections 6, 20 and 21 hereof. 8.2 As collateral security for the Secured Obligations, Lessee hereby grants to Lessor a first priority security interest in any and all of the Equipment (now existing or hereafter acquired) and any and all proceeds thereof. Lessee agrees to execute and deliver to Lessor all necessary documents to evidence and perfect such security interest, including, without limitation, Uniform Commercial Code (UCC)financing statements and any amendments thereto_ 8.3 "Secured Obligations" means Lessee's obligations to pay all Rent Payments and all other amounts due and payable under all present and future Leases and to perform and observe all covenants, agreements and conditions (direct or indirect, absolute or contingent, due or to become due, or existing or hereafter arising)of Lessee under all present and future Leases_ 9. PERSONAL PROPERTY. All Equipment is and will remain personal property and will not be deemed to be affixed or attached to real estate or any building thereon_ 10. MAINTENANCE AND OPERATION. Lessee agrees it shall, at its sole expense: (a) repair and maintain all Equipment in good condition and working order, in accordance with manufacturers instructions, and supply and install all replacement parts or other devices when required to so maintain the Equipment or when required by applicable law or regulation, which parts or devices shall automatically become part of the Equipment; and (b) use and operate all Equipment in a careful manner in the normal course of its operations and only for the purposes for which it was designed in accordance with the manufacturers warranty requirements, and comply with all laws and regulations relating to the Equipment. If any Equipment is customarily covered by a maintenance agreement, Lessee will fumish Lessor with a maintenance agreement by a party reasonably satisfactory to Lessor. No maintenance or other service for any Equipment will be provided by Lessor_ Lessee will not make any alterations, additions or improvements ("Improvements") to any Equipment without Lessors prior written consent unless the Improvements may be readily removed without damage to the operation, value or utility of such Equipment, but any such Improvements not removed prior to the termination of the applicable Lease shall automatically become part of the Equipment. 11_ LOCATION; INSPECTION. Equipment will not be removed from, or if Equipment is rolling stock its permanent base will not be changed from, the Location without Lessors prior written consent which will not be unreasonably withheld_ Upon reasonable notice to Lessee, Lessor may enter the Location or elsewhere during normal business hours to inspect the Equipment. 12. LIENS, SUBLEASES AND TAXES. - 4 - E05 12.1 Lessee shall keep all Equipment free and clear of all Liens except those Liens created under its Lease. Lessee shall not sublet or lend any Equipment or permit it to be used by anyone other than Lessee or Lessee's employees. 12.2 Lessee shall pay when due all Taxes which may now or hereafter be imposed upon any Equipment or its ownership, leasing, rental, sale, purchase, possession or use, upon any Lease or upon any Rent Payments or any other payments due under any Lease. If Lessee fails to pay such Taxes when due, Lessor shall have the right, but not the obligation, to pay such Taxes. If Lessor pays any such Taxes, then Lessee shall, upon demand, immediately reimburse Lessor therefor. "Taxes" means present and future taxes, levies, duties, assessments or other governmental charges that are not based on the net income of Lessor, whether they are assessed to or payable by Lessee or Lessor, including, without limitation (a) sales, use, excise, licensing, registration, titling, gross receipts, stamp and personal property taxes, and (b) interest, penalties or fines on any of the foregoing. 13. RISK OF LOSS. 13.1 Lessee bears the entire risk of loss, theft, damage or destruction of any Equipment in whole or in part from any reason whatsoever ("Casualty Loss"). No Casualty Loss to any Equipment shall relieve Lessee from the obligation to make any Rent Payments or to perform any other obligation under any Lease. Proceeds of any insurance recovery will be applied to Lessee's obligations under this Section 13. 13.2 If a Casualty Loss occurs to any Equipment, Lessee shall immediately notify Lessor of the same and Lessee shall, unless otherwise directed by Lessor, immediately repair the same. 13.3 If Lessor determines that any item of Equipment has suffered a Casualty Loss beyond repair ("Lost Equipment"), then Lessee shall either: (a) immediately replace the Lost Equipment with similar equipment in good repair, condition and working order free and clear of any Liens (except Lessor's Liens) and deliver to Lessor a bill of sale covering the replacement equipment, in which event such replacement equipment shall automatically be Equipment under the applicable Lease; or (b) on the next scheduled Rent Payment date, pay Lessor(i) all amounts owed by Lessee under the applicable Lease, including the Rent Payment due on such date plus (ii) an amount equal to the applicable Termination Value set forth in the Payment Schedule to the applicable Lease. If Lessee is malting such payment with respect to less than all of the Equipment under a Lease, then Lessor will provide Lessee with the pro rata amount of the Rent Payment and Termination Value to be paid by Lessee with respect to the Lost Equipment. 13.4 Lessee shall bear the risk of loss for, shall pay directly, and shall defend against any and all claims, liabilities, proceedings, actions, expenses (including reasonable attorney's fees), damages or losses arising under or related to any Equipment, including, but not limited to, the possession, ownership, lease, use or operation thereof. These obligations of Lessee shall survive any expiration or termination of any Lease. Lessee shall not bear the risk of loss of, nor pay for, any claims, liabilities, proceedings, actions, expenses (including attorney's fees), damages or losses which arise directly from events occurring after any Equipment has been returned by Lessee to Lessor in accordance with the terms of the applicable Lease or which arise directly from the gross negligence or willful misconduct of Lessor. 14_ INSURANCE. 14.1 (a) Lessee at its sole expense shall at all times keep all Equipment insured against all risks of loss or damage from every cause whatsoever for an amount not less than the Termination Value of the Equipment. Proceeds of any such insurance covering damage or loss of any Equipment shall be payable to Lessor as loss payee. (b) The Total Amount Financed as set forth on the Schedule A-1 does not include the payment of any premium for any liability insurance coverage for bodily injury and/or property damage caused to others and no such insurance will be purchased by Lessor. (c) Lessee at its sole expense shall at all times carry public liability and property damage insurance in amounts reasonably satisfactory to Lessor protecting Lessee and Lessor from liabilities for injuries to persons and damage to property of others relating in any way to any Equipment. Proceeds of any such public liability or property insurance shall be payable first to Lessor as additional insured to the extent of its liability, and then to Lessee_ 14.2 All insurers shall be reasonably satisfactory to Lessor. Lessee shall promptly deliver to Lessor satisfactory evidence of required insurance coverage and all renewals and replacements thereof. - 5 - E05 Each insurance policy will require that the insurer give Lessor at least 30 days prior written notice of any cancellation of such policy and will require that Lessor's interests remain insured regardless of any act, error, misrepresentation, omission or neglect of Lessee. The insurance maintained by Lessee shall be primary without any right of contribution from insurance which may be maintained by Lessor. 15. PURCHASE OPTION. Upon thirty (30) days prior written notice by Lessee to Lessor, and so long as there is no Event of Default then existing, Lessee shall have the option to purchase all, but not less than all, of the Equipment covered by a Lease on any Rent Payment due date by paying to Lessor all Rent Payments then due (including accrued interest, if any) plus the Termination Value amount set forth on the Payment Schedule to the applicable Lease for such date. Upon satisfaction by Lessee of such purchase conditions, Lessor shall release its Lien on such Equipment and Lessee shall retain its title to such Equipment"AS-IS, WHERE-IS,' without representation or warranty by Lessor, express or implied, except for a representation that such Equipment is free and clear of any Liens created by Lessor_ 16. LESSEE'S REPRESENTATIONS AND WARRANTIES. With respect to each Lease and its Equipment, Lessee hereby represents and warrants to Lessor that: (a) Lessee has full power, authority and legal right to execute and deliver the Lease and to perform its obligations under the Lease, and all such actions have been duly authorized by appropriate findings and actions of Lessee's governing body; (b) the Lease has been duly executed and delivered by Lessee and constitutes a legal, valid and binding obligation of Lessee, enforceable in accordance with its terms; (c) the Lease is authorized under, and the authorization, execution and delivery of the Lease complies with, all applicable federal, state and local laws and regulations (including, but not limited to, all open meeting, public bidding and property acquisition laws) and all applicable judgments and court orders; (d) the execution, delivery and performance by Lessee of its obligations under the Lease will not result in a breach or violation of, nor constitute a default under, any agreement, lease or other instrument to which Lessee is a party or by which Lessee's properties may be bound or affected; (e) there is no pending, or to the best of Lessee's knowledge threatened, litigation of any nature which may have a material adverse effect on Lessee's ability to perform its obligations under the Lease; and (f) Lessee is a state, or a political subdivision thereof, as referred to in Section 103 of the Code, and Lessee's obligation under the Lease constitutes an enforceable obligation issued on behalf of a state or a political subdivision thereof. 17. TAX COVENANTS. Lessee hereby covenants and agrees that: (a) Lessee shall comply with all of the requirements of Section 149(a) and Section 149(e) of the Code, as the same may be amended from time to time, and such compliance shall include, but not be limited to, keeping a complete and accurate record of any assignments of any Lease and executing and filing Internal Revenue Form 8038G or 8038GC, as the case may be, and any other information statements reasonably requested by Lessor; (b) Lessee shall not do (or cause to be done) any act which will cause, or by omission of any act allow, any Lease to be an "arbitrage bond"within the meaning of Section 148(a) of the Code or any Lease to be a "private activity bond"within the meaning of Section 141(a) of the Code; and (c) Lessee shall not do (or cause to be done) any act which will cause, or by omission of any act allow, the interest portion of any Rent Payments to be or become includable in gross income for Federal income taxation purposes under the Code- (d) If Lessor either(i) receives notice, in any form, from the IRS; or(ii) reasonably determines, based on an opinion of independent tax counsel selected by Lessor and approved by Lessee, which approval Lessee shall not unreasonably withhold, that Lessor may not exclude the interest component of - 6 - E05 any Rent Payment under a Tax-Exempt Lease from federal gross income because Lessee breached a covenant contained herein, then Lessee shall pay to Lessor, within thirty (30)days after Lessor notifies Lessee of such determination, the amount which, with respect to Rent Payments previously paid and taking into account all penalties, fines, interest and additions to tax (including all federal, state and local taxes imposed on the interest component of all Rent Payments under such Tax-Exempt Lease due through the date of such event)that are imposed on Lessor as a result of the loss of the exclusion, will restore to Lessor the same after-tax yield on the transaction evidenced by such Tax-Exempt Lease (assuming tax at the highest marginal corporate tax rate)that it would have realized had the exclusion not been lost_ Additionally, Lessee agrees that upon the occurrence of such an event with respect to a Tax-Exempt Lease, it shall pay additional rent to Lessor on each succeeding Rent Payment due date in such amount as will maintain such after-tax yield to Lessor. Lessor's determination of the amount necessary to maintain its after-tax yield as provided in this subsection (b) shall be conclusive (absent manifest error). Notwithstanding anything in a Tax-Exempt Lease to the contrary, any payment that Lessee is required to make pursuant to this subsection (b)shall be made only from Legally Available Funds. 18. ASSIGNMENT_ 18.1 Lessee shall not assign, transfer, pledge, hypothecate, nor grant any Lien on, nor otherwise dispose of, any Lease or any Equipment or any interest in any Lease or Equipment. 18.2 Lessor may assign its rights, title and interest in and to any Lease or any Equipment, and/or may grant or assign a security interest in any Lease and its Equipment, in whole or in part, to any party at any time. Any such assignee or lien holder(an "Assignee") shall have all of the rights of Lessor under the applicable Lease. LESSEE AGREES NOT TO ASSERT AGAINST ANY ASSIGNEE ANY CLAIMS, ABATEMENTS, SETOFFS, COUNTERCLAIMS, RECOUPMENT OR ANY OTHER SIMILAR DEFENSES WHICH LESSEE MAY HAVE AGAINST LESSOR. finless otherwise agreed by Lessee in writing, any such assignment transaction shall not release Lessor from any of Lessors obligations under the applicable Lease. An assignment or reassignment of any of Lessor's right, title or interest in a Lease or its Equipment shall be enforceable against Lessee only after Lessee receives a written notice of assignment which discloses the name and address of each such Assignee. Lessee shall keep a complete and accurate record of all such assignments in the form necessary to comply with Section 149(a)of the Code. Lessee agrees to acknowledge in writing any such assignments if so requested. 18.3 Each Assignee of a Lease hereby agrees that (a) the term Secured Obligations as used in Section 8.3 hereof is hereby amended to include and apply to all obligations of Lessee under the Assigned Leases and to exclude the obligations of Lessee under any Non-Assigned Leases; (b) said Assignee shall have no Lien on, nor any claim to, nor any interest of any kind in, any Non-Assigned Leases; and (c) Assignee shall exercise its rights, benefits and remedies as the assignee of Lessor (including, without limitation, the remedies under Section 20 of the Master Lease) solely with respect to the Assigned Leases. "Assigned Leases" means only those Leases which have been assigned to an Assignee pursuant to a written agreement; and "Non-Assigned Leases" means all Leases excluding the Assigned Leases. 18.4 Subject to the foregoing, each Lease inures to the benefit of and is binding upon the heirs, executors, administrators, successors and assigns of the parties hereto. 19_ EVENTS OF DEFAULT. For each Lease, "Event of Default" means the occurrence of any one or more of the following events as they may relate to such Lease: (a) Lessee fails to make any Rent Payment (or any other payment) as it becomes due in accordance with the terms of the Lease, and any such failure continues for ten (10) days after the due date thereof; (b) Lessee fails to perform or observe any of its obligations under Sections 12.1, 14 or 18.1 hereof; (c) Lessee fails to perform or observe any other covenant, condition or agreement to be performed or observed by it under the Lease and such failure is not cured within thirty (30) days after receipt of written notice thereof by Lessor; (d) any statement, representation or warranty made by Lessee in the Lease or in any writing delivered by Lessee pursuant thereto or in connection therewith proves at any time to have been false, misleading or erroneous in any material respect as of the time when made; (e) Lessee applies for or consents to the appointment of a receiver, trustee, conservator or liquidator of Lessee or of all or a substantial part of its - 7 - E05 assets, or a petition for relief is fled by Lessee under any federal or state bankruptcy, insolvency or similar law, or a petition in a proceeding under any federal or state bankruptcy, insolvency or similar law is filed against Lessee and is not dismissed within sixty (60)days thereafter; or(f) Lessee shall be in default under any other Lease or under any other financing agreement executed at any time with Lessor. 20. REMEDIES If any Event of Default occurs, then Lessor may, at its option, exercise any one or more of the following remedies: (a) Lessor may require Lessee to pay (and Lessee agrees that it shall pay) all amounts then currently due under all Leases and all remaining Rent Payments due under all Leases during the fiscal year in effect when the default occurs together with interest on such amounts at the highest lawful rate from the date of Lessor's demand for such payment. (b) Lessor may require Lessee to promptly return all Equipment to Lessor in the manner set forth in Section 21 (and Lessee agrees that it shall so return the Equipment), or Lessor may, at its option, enter upon the premises where any Equipment is located and repossess such Equipment without demand or notice, without any court order or other process of law and without liability for any damage occasioned by such repossession; (c) Lessor may sell, lease or otherwise dispose of any Equipment, in whole or in part, in one or more public or private transactions, and if Lessor so disposes of any Equipment, then Lessor shall retain the entire proceeds of such disposition free of any claims of Lessee, provided, that the net proceeds of any such disposition shall be applied to amounts payable by Lessee under clause (a) above of this Section only to the extent that such net proceeds exceed the applicable Termination Value set forth in the applicable Schedule A-1; (d) Lessor may terminate, cancel or rescind any Lease as to any and all Equipment; (e) Lessor may exercise any other right, remedy or privilege which may be available to Lessor under applicable law or, by appropriate court action at law or in equity, Lessor may enforce any of Lessee's obligations under any Lease; and/or (f) Lessor may require Lessee to pay (and Lessee agrees that it shall pay) all out-of-pocket costs and expenses incurred by Lessor as a result (directly or indirectly) of the Event of Default and/or of Lessor's actions under this section, including, without limitation, any attorney fees and expenses and any costs related to the repossession, safekeeping, storage, repair, reconditioning or disposition of any Equipment. None of the above remedies is exclusive, but each is cumulative and in addition to any other remedy available to Lessor. Lessor's exercise of one or more remedies shall not preclude its exercise of any other remedy. No delay or failure on the part of Lessor to exercise any remedy under any Lease shall operate as a waiver thereof, nor as an acquiescence in any default, nor shall any single or partial exercise of any remedy preclude any other exercise thereof or the exercise of any other remedy. 21. RETURN OF EQUIPMENT. If Lessor is entitled under the provisions of any Lease, including any termination thereof pursuant to Sections 6 or 20 of this Master Lease, to obtain possession of any Equipment or if Lessee is obligated at any time to return any Equipment, then (a) title to the Equipment shall vest in Lessor immediately upon Lessors notice thereof to Lessee, and (b) Lessee shall, at its sole expense and risk, immediately de-install, disassemble, pack, crate, insure and return the Equipment to Lessor (all in accordance with applicable industry standards) at any location in the continental United States selected by Lessor. Such Equipment shall be in the same condition as when received by Lessee (reasonable wear, tear and depreciation resulting from normal and proper use excepted), shall be in good operating order and maintenance as required by the applicable Lease, shall be free and clear of any Liens (except Lessor's Lien) and shall comply with all applicable laws and regulations. Until Equipment is returned as required above, all terms of the applicable Lease shall remain in full force and effect including, without limitation, obligations to pay Rent Payments and to insure the Equipment. Lessee agrees to execute and deliver to Lessor all documents reasonably requested by Lessor to evidence the transfer of legal and beneficial title to such Equipment to Lessor and to evidence the termination of Lessee's interest in such Equipment. - 8 - E05 22 LAW GOVERNING. Each Lease shall be governed by the laws of the state of the lessee (The "State"). 23. NOTICES. All notices to be given under any Lease shall be made in writing and either personally delivered or mailed by certified mail to the other party at its address set forth herein or at such address as the party may provide in writing from time to time. Any such notices shall be deemed to have been received five (5) days subsequent to mailing if sent by regular or certified mail, or on the next business day if sent by overnight courier, or on the day of delivery if delivered personally. 24. FINANCIAL INFORMATION; INDEMNITY; POWER OF ATTORNEY. Within thirty (30) days of their completion in each fiscal year of Lessee during any Lease Term, Lessee will deliver to Lessor upon Lessor's request the publicly available annual financial information of Lessee. To the extent permitted by law, Lessee shall indemnify, hold harmless and, if Lessor requests, defend Lessor and its shareholders, affiliates, employees, dealers and agents against all Claims directly or indirectly arising out of or connected with (a) the manufacture, installation, use, lease, possession or delivery of the Equipment, (b) any defects in the Equipment, any wrongful act or omission of Lessee, or its employees and agents, or (c) any claims of alleged breach by Lessee of this Master Lease or any related document. "Claims" means all losses, liabilities, damages, penalties, expenses (including attorney's fees and costs), claims, actions and suits, whether in contract, tort or otherwise. Lessee hereby appoints Lessor its true and lawful attorney-in-fact (with full power of substitution) to prepare any instrument, certificate of title or financing statement covering the Equipment or otherwise protecting Lessor's interest in the Equipment, to sign Lessee's name with the same force and effect as if signed by Lessee, and to file same at the proper location(s); and make claims for, receive payment of, and execute and endorse all documents, checks or drafts for loss, theft, damage or destruction to the Equipment under any insurance. 25. ANTI-MONEY LAUNDERING/INTERNATIONAL TRADE LAW COMPLIANCE. Lessee represents and warrants to Lessor, as of the date of this Master Lease, the date of each advance of proceeds pursuant to this Master Lease, the date of any renewal, extension or modification of this Master Lease or any Lease, and at all times until this Master Lease and each Lease has been terminated and all amounts thereunder have been indefeasibly paid in full, that: (a) no Covered Entity (i) is a Sanctioned Person; (ii) has any of its assets in a Sanctioned Country or in the possession, custody or control of a Sanctioned Person; or (iii) does business in or with, or derives any of its operating income from investments in or transactions with, any Sanctioned Country or Sanctioned Person in violation of any law, regulation, order or directive enforced by any Compliance Authority; (b) the proceeds of any Lease will not be used to fund any operations in, finance any investments or activities in, or, make any payments to, a Sanctioned Country or Sanctioned Person in violation of any law, regulation, order or directive enforced by any Compliance Authority; (c) the funds used to repay any Lease are not derived from any unlawful activity; and (d) each Covered Entity is in compliance with, and no Covered Entity engages in any dealings or transactions prohibited by, any laws of the United States, including but not limited to any Anti-Terrorism Laws. Lessee covenants and agrees that it shall immediately notify Lessor in writing upon the occurrence of a Reportable Compliance Event. As used herein: "Anti-Terrorism Laws" means any laws relating to terrorism, trade sanctions programs and embargoes, import/export licensing, money laundering, or bribery, all as amended, supplemented or replaced from time to time; "Compliance Authority" means each and all of the (a) U.S. Treasury Department/Office of Foreign Assets Control, (b) U.S. Treasury Department/Financial Crimes Enforcement Network, (c) U.S. State Department/Directorate of Defense Trade Controls, (d) U.S. Commerce Department/Bureau of Industry and Security, (e) U.S. Internal Revenue Service, (f) U.S. Justice Department, and (g) U.S_ Securities and Exchange Commission; "Covered Entity" means Lessee, its affiliates and subsidiaries, all guarantors, pledgors of collateral, all owners of the foregoing, and all brokers or other agents of Lessee acting in any capacity in connection with this Master Lease or any Lease; "Reportable Compliance Event" means that any Covered Entity becomes a Sanctioned Person, or is indicted, arraigned, investigated or custodially detained, or receives an inquiry from regulatory or law enforcement officials, in connection with any Anti-Terrorism Law or any predicate crime to any Anti- Terrorism Law, or self-discovers facts or circumstances implicating any aspect of its operations with the actual or possible violation of any Anti-Terrorism Law; "Sanctioned Country" means a country subject to a sanctions program maintained by any Compliance Authority, and "Sanctioned Person" means any individual person, group, regime, entity or thing listed or otherwise recognized as a specially designated, prohibited, sanctioned or debarred person or entity, or subject to any limitations or prohibitions (including - 9 - E05 but not limited to the blocking of property or rejection of transactions), under any order or directive of any Compliance Authority or otherwise subject to, or specially designated under, any sanctions program maintained by any Compliance Authority. 26. USA PATRIOT ACT NOTICE. To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify and record information that identifies each lessee that opens an account. What this means: when Lessee opens an account, Lessor will ask for the business name, business address, taxpayer identifying number and other information that will allow Lessor to identify Lessee, such as organizational documents. For some businesses and organizations, Lessor may also need to ask for identifying information and documentation relating to certain individuals associated with the business or organization. 27. SECTION HEADINGS. All section headings contained herein or in any Schedule are for convenience of reference only and do not define or limit the scope of any provision of any Lease. 28. EXECUTION IN COUNTERPARTS. Each Schedule to this Master Lease may be executed in several counterparts, each of which shall be deemed an original, but all of which shall be deemed one instrument. Only one counterpart of each Schedule shall be marked "Lessor's Original" and all other counterparts shall be deemed duplicates. An assignment of or security interest in any Schedule may be created through transfer and possession only of the counterpart marked "Lessor's Original." 29. ENTIRE AGREEMENT; WRITTEN AMENDMENTS. Each Lease, together with the exhibits attached thereto and made a part hereof and other attachments thereto, and other documents or instruments executed by Lessee and Lessor in connection therewith, constitute the entire agreement between the parties with respect to the lease of the Equipment covered thereby, and such Lease shall not be modified, amended, altered, or changed except with the written consent of Lessee and Lessor. Any provision of any Lease found to be prohibited by law shall be ineffective to the extent of such prohibition without invalidating the remainder of the Lease. 30. HEAVY-DUTY VEHICLE GREENHOUSE GAS EMISSION REDUCTION REGULATION. (a) If the equipment leased pursuant to the tease is a tractor, the Lessee of this heavy-duty tractor understands that when using a heavy-duty tractor to pull a 53-foot or longer box-type trailer on a highway within Califomia, the heavy-duty tractor must be compliant with sections 95300-95312, title 17, California Code of Regulations, and that it is the responsibility of the Lessee to ensure this heavy-duty tractor is compliant. The regulations may require this heavy-duty tractor to have low-rolling-resistance tires that are U.S. Environmental Protection Agency (U.S. EPA) SmartWay Verified Technologies prior to current or future use in California, or may entirely prohibit use of this tractor in California if it is a model year 2011 or later tractor and is not a U.S. EPA SmartWay Certified Tractor. (b) If the equipment leased pursuant to the Lease is a trailer, the Lessee of this box-type trailer understands that when using a heavy-duty tractor to pull a 53-foot or longer box-type trailer on a highway within California, the box-type trailer must be compliant with sections 95300-95312, title 17, Califomia Code of Regulations, and that it is the responsibility of the Lessee to ensure this box-type trailer is compliant. The regulations may require this trailer to have low-rolling-resistance tires and aerodynamic technologies that are U.S_ Environmental Protection Agency SmartWay Verified Technologies prior to current or future use in California. (c) Notwithstanding anything in the Lease to the contrary, the Lease does not prohibit the Lessee from modifying the trailer, at Lessee's cost, to be compliant with the requirements of the Califomia Heavy- Duty Vehicle Greenhouse Gas Emission Reduction Regulation. 31. IMPORTANT INFORMATION ABOUT PHONE CALLS. By providing telephone number(s) to Lessor, now or at any later time, Lessee authorizes Lessor and its affiliates and designees to contact Lessee regarding Lessee account(s) with Lessor or its affiliates, whether such accounts are Lessee individual accounts or business accounts for which Lessee is a contact, at such numbers using any means, including but not limited to placing calls using an automated dialing system to cell, VoIP or other wireless phone number, or leaving prerecorded messages or sending text messages, even if charges - 10 - E05 may be incurred for the calls or text messages. Lessee consents that any phone call with Lessor may be monitored or recorded by Lessor. City of Vemon Oshkosh Capital {'Lasses' ("Lessors) 6y. [� By_ Title: W. Michael McCormick, Mayor Trti� 4305 Santa Fe Ave 155 East Broad Street, B4-B230-05-7 Vernon, CA 90058 Columbus, Obi 43215 AsA . Ayala, Clerk APFROV AS TO FORM! c Brian KuTt, Deputy Y Ity Attorney - 11 - E24 CERTIFICATE OF INCUMBENCY Lessee: City of Vernon Lease Schedule No.: 191184000 Dated: July 24, 2015 1, the undersigned Secretary/Clerk identified below, do hereby certify that I am the duly elected or appointed and acting Secretary/Clerk of the above Lessee (the "Lessee"), a political subdivision duly organized and existing under the laws of the State where Lessee is located, that I have the title stated below, and that, as of the date hereof, the individuals named below are the duly elected or appointed officers of the Lessee holding the offices set forth opposite their respective names. [NOTE: Use same titles as Authorized Representatives stated in Resolutions.] _V- Michael McCormick Mavor _ Name Title Signature Name Title Signature IN WITNESS WHEREOF, I have duly executed this certificate and affixed the seal of such Lessee as of the date set forth below. [SEAL] Signatu of Secre aryi rk of Lessee Print Name: Maria E. Ayala fe: Cie} CIeeic Date, E28 LEASE SCHEDULE NO. 191184000 Dated As Of July 24, 2015 This Lease Schedule (this "Schedule") is attached and made a part of the Master Lease-Purchase Agreement referenced below, together with all exhibits, schedules, addenda, and other attachments thereto, executed by Lessee and Lessor (the "Lease"). Unless otherwise defined herein, capitalized terms will have the same meaning ascribed to them in the Master Lease. All terms and conditions of the Master Lease are incorporated herein by reference. To the extent that there is any conflict between the terms of the Lease and this Schedule, the terms of this Schedule shall control. Master Lease-Purchase Agreement dated July 24, 2015 1. EQUIPMENT DESCRIPTION. As used in the Lease, "Equipment" means all of the property described in Schedule A-1 attached to this Schedule and all attachments, additions, accessions, parts, repairs, improvements, replacements and substitutions thereto. 2. RENTAL PAYMENTS; LEASE TERM. The Rental Payments to be paid by the Lessee to Lessor, the commencement date thereof and the lease term of this Lease Schedule are set forth on the Schedule A-1 attached to this Lease Schedule. 3. ESSENTIAL USE; CURRENT INTENT OF LESSEE. Lessee represents that the use of the Equipment is essential to Lessee's proper, efficient and economic functioning or to the services that Lessee provides to its citizens and the Equipment will be used by Lessee only for the purpose of performing its govemmental or proprietary functions consistent with the permissible scope of its authority. Lessee currently intends for the full Lease Term: to use the Equipment; to continue this Lease; and (if applicable) to make Rent Payments if funds are appropriated in each fiscal year by its governing body. 4. ACCEPTANCE OF EQUIPMENT. AS BETWEEN LESSEE AND LESSOR, LESSEE AGREES THAT (A) LESSEE HAS RECEIVED AND INSPECTED ALL EQUIPMENT; (B) ALL EQUIPMENT IS IN GOOD WORKING ORDER AND COMPLIES WITH ALL PURCHASE ORDERS, CONTRACTS AND SPECIFICATIONS; (C) LESSEE ACCEPTS ALL EQUIPMENT FOR PURPOSES OF THE LEASE "AS-IS, WHERE IS'; AND(D) LESSEE WAIVES ANY RIGHT TO REVOKE SUCH ACCEPTANCE. 5. BANK QUALIFIED. LESSEE CERTIFIES THAT IT HAS DESIGNATED THIS LEASE AS A QUALIFIED TAX-EXEMPT OBLIGATION IN ACCORDANCE WITH SECTION 265(b)(3) OF THE CODE, THAT IT HAS NOT DESIGNATED MORE THAN $10,000,000 OF ITS OBLIGATIONS AS QUALIFIED TAX-EXEMPT OBLIGATIONS IN ACCORDANCE WITH SUCH SECTION FOR THE CURRENT CALENDAR YEAR AND THAT IT REASONABLY ANTICIPATES THAT THE TOTAL AMOUNT OF TAX-EXEMPT OBLIGATIONS TO BE ISSUED BY LESSEE DURING THE CURRENT CALENDAR YEAR WILL NOT EXCEED $10,000,000. 6. RE-AFFIRMATION OF THE MASTER LEASE-PURCHASE AGREEMENT. Lessee hereby re-affirms all of its representations, warranties and obligations under the Master Lease Purchase Agreement (including, without limitation, its obligation to pay all Rental Payments, its disclaimers in Section 7 thereof and its representations in Section 6.1 and 16 thereof)_ City of Vernon Oshkosh Capital ("Lessee") ("Lessor") y Title: W. Michael McCormick, Mayor Title: Atte t: Approve rs to rm: 5 Maria Ayala.. Ci Clerk Brian BMh, Deputyg City Attorney Schedule A-1 1. EQUIPMENT LOCATION & DESCRIPTION.- City of Vernon 4305 S. Santa Fe Ave 2800 S. Soto Street Vernon CA 90058 Vernon, CA 90058 Los Angeles County 2016 Pierce PUC Triple Combinatin Pumper VIN# 2016 Pierce PUC Triple Combinatin Pumper VIN# 2. LEASE PAYMENT SCHEDULE. (a) Accrual Date: July 24, 2015 (b) Amount Financed: i. Equipment Purchase Price $1,263,243.00 Sales Tax $108,827.82 ii. Purchase Price Dedution $0,00 Prepay Discounts $54,024.00 Performance Bond $3 7� 89.67 Total Amount Financed (Cash Sale Price minus iii_ Purchase Price Deductions) $1.321,836.49 E28 (c) Payment Schedule: Accrual Date: July 24, 2015 Rent Payment Rent Payment Rent Payment Interest Termination Number Date Amount Portion Principal Portion Value 1 7/24/2016 158,059.45 44,810.26 113,249.19 1,244,844.92 2 7/24/2017 158,059.45 40,971.11 117,088.34 1,124,243.93 3 7/24/2018 158,059.45 37,001.82 121,057.63 999,554.57 4 7/24/2019 158,059.45 32,897.96 125,161.49 870,638.24 5 7/24/2020 158,059.45 28,654.99 129,404.46 737,351.64 6 7/24/2021 158,059.45 24,268.18 133,791.27 599,546.63 7 7/24/2022 158,059.45 19,732.65 138,326.80 457,070.03 8 7/24/2023 158,059.45 15,043.37 143,016.08 309,763.47 9 7/24/2024 158,059.45 10,195.13 147,864.32 157,463.22 10 7/24/2025 158,059.45 5,182.54 152,876.91 1.00 CRY of Vernon Oshkosh Capital (-Lessee") ("Lessor") 13y: �c,� �� By Title: W. iiichael McCormick, Mayor Title: •� Maria E Avala. City rk T APFROVFORM: k D !A TO FOAM: Brian Byu , Deputy Ci ,t Attorneys F-28 THREE PARTY AGREEMENT Dated as of July 24, 2015 "Lessee" means City of Vemon "Schedule" means Lease Schedule No. 1911 84000 Dated July 24, 2015, together with its Schedule A-1. Reference is made to the Lease Schedule ("Schedule") and to the Master Lease-Purchase Agreement ("Master Lease") identified in said Lease Schedule, described above between Oshkosh Capita! ("Lessor") and the Lessee identified above which relates to Equipment described in Schedule A-1 to the Lease Schedule attached therein ("Equipment") to be supplied! by Pierce Manufacturing Inc. ("Supplier"). For good and valuable consideration, receipt of which is hereby acknowledged, Lessee, Lessor and Supplier hereby agree as follows: 1. Notwithstanding anything to the contrary in the Lease Schedule, Lessee hereby notifies Lessor that the Equipment has not yet been delivered to Lessee and the Equipment has not yet been accepter! by Lessee for purposes of the Lease Schedule. Lessee agrees to execute and deliver to Lessor a Delivery and Acceptance Certificate in the form attached hereto as Exhibit A upon the circumstances set forth in said Certificate. 2. Alf parties hereto agree that the Purchase Price of the Equipment shall be as set forth below if said Purchase Price is paid on or before the Advance Payment Date set forth below- Purchase Price: $1,263,243.00 Sales Tax $108,827.82 Performance Bond $3,789.67 Vendor Discounts: $54 0. 24_�0 Advance Payment Date: July 24, 2015 3. upon execution of the Lease Schedule and delivery of all documents relating thereto required by Lessor, Lessee agrees that it shall pay the Lessee Down Payment stated below and Lessor agrees that it shall pay the balance of the Purchase Price (the "Amount Financed") stated below. Lessee agrees that the Lease Term and Lessee's obligation to pay Rent Payments shall commence on the date set forth in the Lease Schedule notwithstanding the delivery of the Equipment at a later date_ Lessee Down Payment: $0.00 Trade In: $0.00 Amount Financed: $1,321,836.49 4_ (a) Supplier anticipates that it shall deliver the Equipment to Lessee by the Anticipated Delivery Date set forth below_ Anticipated Delivery Date: June 24, 2016 (b) Supplier hereby agrees that it shall deliver the Equipment to Lessee no later than the Outside Delivery Date set forth below and that such Equipment shall comply with all specifications and requirements of Lessee and with the terms and conditions of any purchase order/purchase agreement relating thereto. Outside Delivery Date: August 24, 2016 5. If for any reason whatsoever Supplier fails to comply with its agreements set forth in subparagraph 4(b) of this Agreement by the Outside Delivery Date for any piece of Equipment (the 'Delayed E28 (a) On the first business day after the Outside Delivery Date, Supplier shall pay to Lessee the Lessee Down Payment for the Delayed Equipment plus interest at the Prime Rate plus one percent (1%) per annum from the Advance Payment Date to the date of such payment; (b) On the first business day after the Outside Delivery Date, Supplier shall pay to Lessor for the Delayed Equipment the Amount Financed plus interest at the Prime Rate plus one percent (1%) per annum from the Advance Payment Date to the date of such payment; and (c) "Prime Rate" means the prime rate of interest as published from time to time in the Wall Street Journal. If there is more than one piece of Equipment subject to the Lease, and some of the Equipment is delivered in accordance with subparagraph 4(b) of this Agreement, the payments owed pursuant to the Lease shall be modified to reflect only the obligations due on the Equipment that was delivered pursuant to subparagraph 4(b) of this Agreement. The new payment obligation will be determined based on the amount financed for the Equipment delivered to the Lessee, and based on the interest rate in effect as of the date of Lease commencement. 6. If Supplier makes the payments described in paragraph 5 above for the Delayed Equipment under the circumstances set forth above and if Lessee has otherwise paid and performed its obligations under the Lease Schedule as of such payment date for the Delayed Equipment, then Lessee and Lessor agree that the Lease Schedule shall terminate as of the date of such payments by Supplier as to the Delayed Equipment only. Lessee's obligations shall continue unabated for the Equipment that was delivered pursuant to subparagraph 4(b) of this Agreement. 7. Supplier agrees that a Performance Bond will be issued which names the Supplier as Principal, the Lessee as Obligee and the Lessor as Additional Obligee. This Performance Bond will apply solely to the terms and conditions of the purchase order/purchase agreement, including related equipment specifications and warranties, as issued by the lessee and accepted by the Supplier. The "Contract Date" referred to in the Performance Bond shall be the date of the Three Party Agreement. Except as expressly set forth herein, the Lease Schedule and the terms and conditions of the purchase order/purchase agreement for the equipment remain unchanged and in full force and effect. 8. Except as expressly set forth herein, the Lease Schedule and terms and conditions of the purchase order/purchase agreement for the Equipment remain unchanged and in full force and effect. IN WITNESS WHEREOF, the duly authorized officers of the parties set forth below hereby execute and deliver this Agreement as of the date first written above. City of Vernon Oshkosh Capitaf ("Lessee") ('Lessor") B By: Title: W. Michael McCorml ck. Mavor Title: Pierce Manufacturing Inc. ("Supplier") By: Title: C il�z of eMUn is + e Maria E Ayala, City CI Approved as to Form: T r -'°1 &,,. Brian Byun, Deput iiky Attorney E28 VEHICLE SCHEDULE ADDENDUM Dated As Of July 24, 2015 Lease Schedule No. 191184000 Dated Jul 24,y_ 2015 Lessee: City of Vernon Reference is made to the above Lease Schedule ("Schedule') to the Master Lease-Purchase Agreement identified in the Lease Schedule ("Master Lease) by and between Oshkosh Capital ("Lessor") and the above Lessee ("Lessee"). This Addendum amends and modifies the terms and conditions of the Schedule and is hereby made a part of the Schedule. Unless otherwise defined herein, capitalized terms defined in the Master Lease shall have the same meaning when used herein. NOW THEREFORE, as part of the valuable consideration to induce the execution of the Schedule, Lessor and Lessee hereby agree to amend the Schedule as follows: 1. In the event that any unit of Equipment covered by the Schedule is a vehicle or trailer under applicable State law, then the following provisions shall also apply to the Schedule to the extent permitted by law, (a) each manufacturer's statement of origin and certificate of title shall state that Lessor has the first and sole lien on or security interest in such unit of Equipment; (b)the public liability and property damage insurance required by the terms of the paragraph titled "Insurance in the Master Lease shall be in an amount not less than$1,000,000.00 per person insured and $2,000,000.00 combined single limit per unit per occurrence (provided, that if the unit of Equipment is a bus or other passenger vehicle, then such insurance amount shall be such larger amount as may be reasonably required by Lessor) and $1,000,000.00 for damage to property of others; (c) Lessee shall furnish and permit only duly licensed, trained, safe and qualified drivers to operate any such unit of Equipment, and such drivers shall be agents of Lessee and shall not be agents of Lessor; and (d) Lessee shall cause each such unit of Equipment to be duly registered and licensed as required by applicable State law with Lessor noted as lien holder and Lessee as owner. 2. Except as expressly amended by this Addendum and other modifications signed by Lessor, the Schedule remains unchanged and in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this Addendum as of the date first referenced above. CV of Vernon Oshkosh Capital ("Lessee°) ("Lessor) BY, By. Title:_ & &chae3 McCormick. Mayor Title: Iv1a>-ia t Ayala. Ciiy erk Approved as to Form: �-� Aza� Brian Byun, Deput V ity Attorney ty of Zr v %_� �i� 4305 Santa Fe Avenue,Vernon,California 90058 Telephone (323)583-8811 Date: July 27,2015 Lessee: City of Vernon Lessor: Oshkosh Capital Re: Lease Schedule No. 191184000 dated July 24, 2015,together with its Master Lease-Purchase Agreement dated July 24,2015, by and between the above-named Lessee and the above-named Lessor Gentlemen: I have acted as counsel to Lessee with respect to the Lease Schedule, the Master Lease-Purchase Agreement and all other agreements described above or related thereto (collectively, the"Agreements") and various related matters, and in this capacity have reviewed a duplicate original or certified copy of the Agreements and such other documents as I have deemed necessary for the purposes of this opinion. Based upon the examination of such documents, it is my opinion that: 1. Lessee is a political subdivision of the State of Califomia (the"State") duly organized, existing and operating under the Constitution and laws of the State. 2. Lessee is authorized and has power under State law to enter into all of the Agreements, and to carry out its obligations thereunder and the transactions contemplated thereby. 3. The Agreements and all other documents related thereto have been duly authorized, approved, and executed by and on behalf of Lessee, and each of the Agreements is a valid and binding contract of Lessee enforceable in accordance with its terms, except to the extent limited by State and Federal law affecting creditor's remedies and by bankruptcy, reorganization or other laws of general application relating to or affecting the enforcement of creditors' rights. 4. The authorization, approval and execution of the Agreements and all other proceedings of Lessee relating to the transactions contemplated thereby have been performed in accordance with all applicable Local, State and Federal laws(including open meeting laws and public bidding and property acquisition laws). 5. To the best of my knowledge, there is no litigation or proceeding pending before any court, administrative agency or governmental body, that challenges: the organization or existence of Lessee; the authority of its officers; the proper authorization; approval and execution of any of the Agreements or any documents relating thereto; the appropriation of monies to make payments under the Agreements for the current fiscal year; or the ability of Lessee otherwise to perform its obligations under the Agreements and the transactions contemplated thereby. 6. Lessee is a political subdivision of the State as referred to in Section 103 of the Internal Revenue Code of 1986, as amended, and the related regulations and rulings thereunder. Lessor, its Assignee and any of their assigns may rely upon this opinion. Very trt;tyycurs, 0ria un, Deputy y Attorney E &sivety Industriaf I01 INSURANCE COVERAGE DISCLOSURE Oshkosh Capital, LESSOR Ctj of Vernon , LESSEE RE: INSURANCE COVERAGE REQUIREMENTS 1. In accordance with the Lease Schedule ("Schedule") to the Master Lease-Purchase Agreement identified in the Lease Schedule ("Master Lease"), Lessee certifies that it has instructed the insurance agent named below(please fill in name, address, and telephone number): to issue: (check to indicate coverage) a. All Risk Physical Damage Insurance on the leased Equipment evidenced by a Certificate of Insurance and Long Form Loss Payable Clause naming Oshkosh Capital and/or its assigns as Loss Payee_ Coverage Required: Termination Value Specified b. Public Liability Insurance evidenced by a Certificate of Insurance naming Oshkosh Capital and/or its assigns as an Additional insured. Minimum Coverage Required: $1,000,000.00 per person $2,000,000.00 aggregate bodily injury liability $1,000,000.00 property damage liability Proof of insurance coverage will be provided to Oshkosh Capital, 155 East Broad Street, 134-13230-05-7, Columbus, OH 43215, prior to the time that the property is delivered to Lessee. OR 2. Pursuant to the Master Lease, Lessee represents and warrants, in addition to other matters under the Agreement, that it is lawfully self-insured for. (check to indicate coverage) a. All risk, physical damage in the amount specified in 1(a) above. b. Public liability for not less than the amounts specified in 1(b) above. Lessee has attached a signed letter describing self-insurance. LESSEE, ��r"o By, (II A M Title: D I KA M pmqE I . f� - 0"), 4305 Santa Fe Avenue,Vernon,California 90058 Telephone(323)583-8811 July 27, 2015 Cheryl Kennedy Oshkosh Capital 155 East Broad Street Locator: B4-B230-05-07 Columbus, Ohio 43215 Dear Ms. Kennedy: Subject: Master Lease—Purchase of Two Pierce_PUC Triple Combination Pumpers The City of Vernon ("City"), a municipal corporation of the State of California, certifies that it is self-insured for general liability ($2,000,000), automobile liability ($2,000,000) and workers' compensation liability (S2,000,000). The City warrants that the limits of its self-insurance coverage meet or exceed the requirements and obligations as set for the, and to the extent permitted, by State law. In addition the City maintains excess liability and excess workers' compensation coverage through various insurance companies. The City of Vernon, will maintain its program of insurance for the benefit of the Oshkosh Capital Company as it relates to the purchase of two Pierce PUC triple combination pumpers throughout the duration of the Lease-Purchase Agreement and related lease schedule. RResp(e�c�tff�ully submitted, (/ lA William Fox, Director of Finance E7,rfusivefy Industrial 101 INSURANCE INFORMATION Please provide the following information to your insurance company to help expedite receipt of the necessary coverage: ITEMS WHICH NEED TO BE REFLECTED ON INSURANCE CERTIFICATE: • Oshkosh Capital must be named Loss Payee and Additional Insured • 30 Days Notice of Cancellation • Not Less than $2,000,000.00 limits on liability • Certificate must reflect a short equipment description • Certificate must reflect an expiration date Certificate Holder Information: Oshkosh Capital, its successors and/or all assigns 155 East Broad Street, B4-B230-05-7 Columbus, OH 43215 Please send a FAX copy of certificate to Cheryl Kennedy at 1-800-678-0602_ The original should be mailed to the same at: Oshkosh Capital 155 East Broad Street, 64-6230-05-7 Columbus, OH 43215 Please call Cheryl Kennedy at 1-800-820-9041, ext. 4, if you have any questions. OSHKOSH CAPITAL INFORMATION REQUEST LESSEE NAME: City of Vernon FEDERAL TAX I.D. # g5-6non8Q$ BILLING ADDRESS: William F. Fox Billing Contact 4305 Santa Fe Avenue Street Address or Post Office Box Vernon, CA 9_0058 City, State and Zip 323-583-8811 x849 _323-826-1491 Phone Number Fax Number wfox@ci.vernon.ca.us Email Address PHYSICAL ADDRESS (IF DIFFERENT): Street Address or Post Office Box City, State and Zip Require Board Approval for Payments? X Yes No Board Meeting Date? 1st & 3rd Tuesdays of every month Require signed vouchers for payments? X Yes _ No We typically mail our invoices 30 days in advance. Taking into account a 7-day mail period, do you foresee any problem that would prevent the payment from being received on or before the due date? Yes X No Please list any special instructions below: Form 8038-G Information Return for Tax-Exempt Governmental Obligations (Rev September 2011 ►Under Internal Revenue Code section 149(e} (R P ) OMB No.1545-0720 See separate instructions. Department of the Treasury internal Revenue Service Caution:If the issue price is under$100,000,use Fonn 8038-GC. ffaMITN Reporting Author _ _ ,; Amended Return, ch�ck ^ere ► J_ 1 Issuer's name 2 Issuer's employer identification number(EIN CITY OF VERNON 95-6000808 38 Name of person(other than issuer)with whom the IRS may communicate about this return(see instructions) 3b Telephone number of other person shown on 3a MLLIAM F.FOX 323-583-8811 x849 4 Number and street(or P.O.box if mail is not delivered to street address) Aao-lsuite 5 Report number(For IRS Use Only) 4305 SANTA FIE AVENUE -_ 6 City,town,or post office,state,and ZIP code 7 Date of issue VERNON,CA 90058 7124/2015 8 Name of issue 9 CUSIP number LEASE SCHEDULE NO.191184000 NONE 10a Name and title of officer or other employee of the issuer whom the IRS may call for more information(see 10b Telephone number of officer or other instructions) employee shown on 10a JOAQUIN LEON,DEPUTY CITY TREASURER 323-583-8811 x365 T e of Issue [enter the issue price). See the instructions and attach schedule. 11 Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 12 Health and hospital . . . . . . . . . . . . . . . . . . . . . . . 12 13 Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 14 Public safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 15 Environment(including sewage bonds) . . . . . . . . . . . . . . . . . . . . 15 16 Housing . . . . . . . . . . . . . . . . . 16 17 Utilities _ _ . _ . . 17 18 Other. Describe ► _ 18 19 If obligations are TANS or RANs,check only box 19a . . . . . . . . ► ❑ ; If obligations are BANS, check only box 19b . . . . . . . . . ► ❑ --* - 20 If obligations are in the form of a lease or installment sale, check box . . . . . . . . ► ❑a Description of Obli ations. Complete for the entire 1S5Ue for whictl this form is bei ng#iled. (a)FnaJ maturity date (d}w5we pme W Stated redemption (d}Weigntad le}Yield price at maturity avpra�e rnowity 21 712412025 I S7,$27,83ti,49S NIA' 10 e 5 3.39 % kfees of Proceeds of Bong Issue[including underwriters' discount N/A 22 Proceeds used for accrued interest . . . . . . . . . . . . . . . . . . . . . 22 23 Issue price of entire issue(enter amount from line 21,column(b)) . . . . . . . 23 24 Proceeds used for bond issuance costs(including underwriters'discount). 24 25 Proceeds used for credit enhancement . . . . . . . . . . . . 25 26 Proceeds allocated to reasonably required reserve or replacement fund 26 27 Proceeds used to currently refund prior issues 27 28 Proceeds used to advance refund prior issues 28 29 Total(add lines 24 through 28) . . . . . . . . . . . . . . . . . . . . . . . 29 30 Nor-refunding proceeds of the issue(subtrav' line 29 from line 23 and enter amount here) , 30 • Dt3scri on of Refunded Bonds. tom fete this part only for refunding bonds. W A 31 Enter the remaining weighted average maturity of the bonds to be currently refunded . . . . ► ,iea 32 Enter the remaining weighted average maturity of the bonds to be advance refunded . . . . years 33 Enter the last date on which the refunded bonds will be called(MM/DD/YYYY) . . . . . . ► 34 Enter the dates the refunded bonds were issued► MM/DonrwY) For Paperwork Reduction Act Notice,see separate instructions. Cat No 63773S Form 80W-G(Rev.9-2011) Form 903E-G(Rev,9-2011) oagu 2 Miscellaneous 35 Enter the amount of the state volume cap allocated to the issue under section 141(b)(5) . . . . 35 36a Enter the amount of gross proceeds invested or to be invested in a guaranteed investment contract (GIC)(see instructions) . . . . . . . . . . . . 368 b Enter the final maturity date of the GIC Pi- c Enter the name of the GIC provider► _ 37 Pooled financings: Enter the amount of the proceeds of this issue that are to be used to make loans to other governmental units . . . . . . . . . . . . . . . . . . . . . . . . I 3i 38a If this issue is a loan made from the proceeds of another tax-exempt issue, check box► ❑and enter the following information: b Enter the date of the master pool obligation► c Enter the EIN of the issuer of the master pool obligation► d Enter the name of the issuer of the master pool obligation► 39 If the issuer has designated the issue under section 265(b)(3)(8)(i)(I11)(small issuer exception),check box ► ❑ 40 If the issuer has elected to pay a penalty in lieu of arbitrage rebate,check box . - . . . . . ► ❑ 41a If the issuer has identified a hedge, check here► ❑ and enter the following information: b Name of hedge provider Pi- c Type of hedge► d Term of hedge► 42 If the issuer has superintegrated the hedge,check box . . . . . . . . . . . . . . . . . . ► ❑ 43 If the issuer has established written procedures to ensure that all nonqualified bonds of this issue are remediated according to the requirements under the Code and Regulations(see instructions),check box . . . . . . . . ► ❑ 44 If the issuer has established written procedures to monitor the requirements of section 148,check box . . . ► ❑ 45a If some portion of the proceeds was used to reimburse expenditures, check here► ❑ and enter the amount of reimbursement . . . . . . . . . ► b Enter the date the official intent was adopted Do- Under penalties of perjury.I declare that I have examined this return and accompanying schedules and statements,and to the best of my knowledge Signature and belief,they are true,correct,and complete.I further declare that I consent to the IRS's disclosure of the issuer's return information,as necessary to and process this ret person I ha above. Consent IVE WILLIAM F.FOX,FINANCE DIRECTOR Signature of issuer's authorized representat a NIC lype or print name and title Paid Prin'frype pmpwer'g r1ar" Preparer's signature Date Check [] Id PTlf+t Preparer self-erri* ed Use Only Firm's name ` Firm'a Ellie ► Flrm's addreaa i Phone,)o. Fcrm I -G(Rev,9-2011) FM1 RECEIVED JUL 42 7 2015 CITY ADMINISTRATION STAFF REPORT VERNON GAS & ELECTRIC DEPARTMENT DATE: August 4,2015 TO: Honorable Mayor and City Council FROM: Carlos Fandino Jr., Director of Vernon Gas & Electric Department Originator: Ali Nour, Utilities Engineering Manager RE: Request for Approval of City of Vernon Revised Electric Rule No. 2 Recommendation A. Find that the approval of the City of Vernon Revised Electric Rule No. 2 is exempt from California Environmental Quality Act (CEQA) review because it is general policy and procedure making that will not result in direct or indirect physical changes in the environment, and therefore does not constitute a "project" as defined by CEQA Guidelines §15378; and B. Approve the resolution to thereby, amend Section (H.2) of Rule 2 of the City of Vernon's Rules for Electric Service to state that effective August 4, 2015 customers being served by the Customer-Financed Added Facilities shall pay a monthly charge of 0.33% of the amount advanced, and customers being served by City-Financed Added Facilities shall pay a monthly charge of 1.0% of the additional cost associated with the Added Facilities. Changes are being requested to the following City documents: Electric Service Rule No. 2 - Description of Service Background The City of Vernon normally installs only those standard facilities that it deems necessary to provide regular service in accordance with the applicable rate schedules, rules and regulations. Where a customer requests City to install special facilities ("Added Facilities") and City agrees to make such an installation, the additional costs thereof shall be borne by the customer, including such continuing service costs as may be applicable pursuant to Section (H) of Rule 2, Description of Service for Electric Service. Added Facilities are value added services equipment requested by a customer that are in addition to or in substitution for standard facilities that City would normally provide for delivery of service at one location, through one meter, at one voltage class under its rate schedule, rule and regulations. Added Facilities are considered to be existing, upgraded, or new facilities installed Page 1 of 3 and/or used by the City at the customer's request in addition to the standard facilities which the City would normally install or use, and which represent additional costs to the City over normally installed facilities. Unless otherwise provided by City applicable rates, rules and regulations, Added Facilities will be installed, owned, and maintained by City as an accommodation to the customer only if applicable for operations by City and the reliability of service to City's other customers is not impaired. Added Facilities may include, but are not limited to, those facilities necessary to supply preferred/emergency service, primary voltage metering services, data monitoring services, or other non-standard facilities. The City of Vernon Ordinance No. 1030 regarding Electrical Energy Distribution in the City of Vernon was adopted in May 16, 1995. Any changes in the rates and rules for energy supplied by the Vernon Electric System can be set by resolution of the city council, pursuant to Section 4 of the Ordinance. Currently, Section (H.2) of the Electric Service Rule 2 describes options for the financing of the Added Facilities. It states: "Customers being served by the Customer-Financed Added Facilities shall pay a monthly charge of 0.9% of the amount advanced and customers being served by City- Financed Added Facilities shall pay a monthly charge of 1.7% of the additional cost associated with the Added Facilities". Staff reviewed the City's current cost of service for Added Facilities and determined that the monthly recovery charges for Added Facilities need to be amended. Staff further recommends that Section (H.2) be revised to state effective August 4, 2015: "Customers being served by the Customer-Financed Added Facilities shall pay a monthly charge of 0.33% of the amount advanced and customers being served by City-Financed Added Facilities shall pay a monthly charge of 1.0% of the additional cost associated with the Added Facilities". The table below depicts the determination of the proposed rates: Added Facilities Monthly Rate City Financed Customer Financed 1 Operations, Maintenance and 3.50% 3.50% replacement 2 1 Administrative and General 0.50% 0.50% 3 Cost of Money 6.00% 0% 4 Depreciation 2.00% 0% Annual Added Facilities Rate 12.00% 4.00% Monthly Added Facilities Rate 1.00% 0.33% Fiscal Impact Customers entering into Added Facilities Agreements after the effective date of the revised Rule No. 2 would pay the new lower rates for the ownership cost. The new rates are to reflect the City's current cost of service for Added Facilities. Page 2 of 3 Attachments) 1. City of Vernon Utilities Department Rules for Electric Service Proposed Amendment (redlined on existing Rules) 2. Ordinance No. 1030 (for reference) Page 3 of 3 CITY OF VERNON UTILITIES DEPARTMENT RULES FOR ELECTRIC SERVICE Rule No.2: DESCRIPTION OF SERVICE A. General. The following general rules shall apply to all services: 1. The character of service available at any particular location should be ascertained by inquiry at the City's office. 2. The Rate Schedules are applicable for service where the Customer purchases its entire electrical requirements from the City, except where such schedules specifically provide otherwise, and are not applicable where a part of the Customer's electrical requirements are supplied from some other source. 3. The Rate Schedules are applicable for service provided from overhead distribution facilities and underground distribution facilities in accordance with the provisions of Rules 15 and 16. 4. Alternating current service at a nominal frequency of 60 Hz will be supplied. 5. Voltages referred to in the Rate Schedules are Nominal Voltages. B. Phase and Voltage Specifications. The following phases and voltages are supplied by the City: 1. Standard Nominal Voltages. a. Standard Nominal Voltages for distribution are as follows: 120/208, 120/240, 240, 2771480, 4160, 7200 or 16500 volts. b. The standard Nominal Voltage for transmission is 66,000 volts. For the City's Operating Necessity, the City may elect to supply a Customer from lines of transmission voltage. In such case, the Customer may select as a standard delivery voltage one of the following: 4160, 7200, 16500 volts, or such other voltage as the City may approve, provided that in no case shall a Customer be required to advance to the City a greater amount of money to obtain service than it would be required to advance under the City's Rules applicable to the particular load, if that customer was served from the City's nearest Distribution Line ordinarily employed. C. Where the City maintains four-wire wye-connected polyphase secondary mains: 1201208 and 208 volts. d. Where the City maintains four-wire delta-connected polyphase secondary mains: 120/240 and 240 volts. 2. Single-phase Service. 2- 1 a. The general description of single-phase service provided by the City is given in Table 2-1. Table 2.1 _ Voltage Minimum Load Maximum Load Required Allowed _ 1201240 volts None 400 amp. Main i switch b. The maximum size 120 volt single-phase motor allowed is 1 hp and the maximum size 240 volt, or higher voltage, single-phase motor allowed is 10 hp. C. Single-phase service may be supplied to installations having a proposed main service switch in excess of the switch capacities specified above, in Table 2-1, provided the approval of the City has been first obtained as to the number and size of switches, circuits, and related facilities. 120/240 volt installations will be supplied by one of the following methods as determined by the City: (1) From two or three separate 120/240 volt service connections at one location. Energy so supplied will be totalized for billing purposes. The connected load on any service connection shall not be greater than twice that on any other service connection. (2) From one 120/240 volt connection where the proposed main service switch does not exceed 600 amperes capacity. d. Where the City maintains four-wire wye-connected 120/208 volt secondary mains, single-phase service is supplied at 120/208 volts, three-wire,for which the maximum allowed is a 100-ampere main switch. Loads in excess of a 100-ampere main switch will be supplied at 120I208 volts, three-phase,four-wire. 3. Three-phase Service. a. The general description of three-phase service provided by the City is given in Table 2-2. Table 2.2 Minimum Maximum Maximum Main Connected Load Demand Switch Capacity Voltage Required Allowed Allowed 120/208 120/240 volts 3 kVA 10-00 kVA 4000 amps. 277/480 volts 25 kVA 3000 kVA 4000 amps. 4160 volts Consult City 12000 kVA 3000 amps. 7200 volts Consult City 30000 kVA Not specified 16500 volts Consult City 30000 kVA Not specified b. Domestic Service. In areas where the City does not maintain three-phase secondary mains, only single-phase service will be supplied unless the Customer's 2-2 load includes at least one motor rated in excess of 10 hp. C. Where three-phase service is supplied from a four-wire wye-connected 120/208 volt service, the maximum demand allowed is 1,000 kVA. d. Service to all loads of 1,000 kVA maximum demand, or over, must be approved by the City as to adequacy of facilities for service. e. Loads on three-phase service must be balanced between phases in accordance with good engineering practice. f. Three-phase service may be supplied to installations having a proposed main service switch in excess of the switch capacities specified above, in Table 2-2, provided approval of the City has first been obtained as to the number and size of switches, circuits and related facilities. Such service will be supplied from two or three separate service connections at one location. Energy so supplied will be totalized for billing purposes. The loads will be balanced as closely as practicable between the services. 4. Combined Single-phase Service and Three- hase Service. a. Service may be supplied at 120/208 volts four-wire wye-connected where the City does not maintain four-wire secondary polyphase mains provided: (1)written application is made for such service by the Customer;(2)the Customer's load is of such a size as to require an individual transformer installation of not less than 15 kVA of transformer capacity; and (3)the Customer provides space acceptable to the City on its Premises to accommodate the installation of the Citys facilities when, in the opinion of the City, such space is considered necessary. b. In underground areas where the City maintains 120/208 volt or 240 volt three-phase mains, service may be supplied at 277/480 volts, four-wire provided: (1)written application is made for such service by the Customer, and (2)the Customer provides space acceptable to the City on its Premises to accommodate the installation of the City's facilities when, in the opinion of the City, such space is considered necessary. C. Service may be supplied at 120/240 volts four-wire delta-connected where the City does not maintain four-wire secondary polyphase mains provided: (1)written application is made for such service by the Customer; (2) the Customer's load is of such a size as to require an individual transformer installation of not less than 15 kVA of transformer capacity;(3)the imbalance between phases is less than 100 kW; and (4)the Customer provides space acceptable to the City on its Premises to accommodate the installation of the City facilities when, in the opinion of the City, such space is considered necessary. d. The maximum demand allowances for combined single-phase and three-phase are set forth in 13.3. above. 2-3 5. At the option of the City, the above voltage and phase specifications may be modified because of service conditions at the location involved. C. Motor Protection and Equipment. Customer's motor equipment must conform to the following requirements: 1. Motors that cannot be safely subjected to full rated voltage on starting or that drive machinery of such a nature that the machinery, itself, or the product it handles will not permit the motor to resume normal speed upon the restoration of normal supply voltage shall be equipped with devices that will disconnect them from the line upon failure of supply voltage and that will prevent the automatic reconnection of the motors upon restoration of normal supply voltage. 2. All motors of 1 hp or larger shall be equipped with thermal relays,fuses, or other automatic overcurrent interrupting devices to disconnect completely such motors from the line as a protection against damage due to overheating. 3. Three-phase motors driving elevators, hoists, tramways, cranes, conveyers, or other equipment,which would create hazard to life in the event of uncontrolled reversal of motor rotation, shall be provided with reverse-phase and open-phase protection to disconnect completely the motors from the line in the event of phase reversal or loss of one phase. D. Allowable Motor Starting Currents. The starting current drawn from the City lines shall be considered the nameplate locked rotor current or that guaranteed by the manufacturer. At its option the City may determine the starting current by test, using a stop ammeter with not more than 15% overawing or an oscillograph, disregarding the value shown for the first 10 cycles subsequent to energizing the motor. 1. If the starting current for a single motor exceeds the value stated in Tables 2-3 and 2-4, reduced voltage starting or other suitable means must be employed, at the Customer's expense, to limit the current to the value specified, except where specific exemptions are provided in Sections D.2, 3 and 4. Table 2.3 Alternating Current—Single—Phase Motors Rated Size Allowable Locked Rotor Currents 120 Volts 240 Volts 1 hp& less 50 amperes 36 amperes 1 '/2 hp nla 48 amperes 2 hp nla 60 amperes 3 hp nla 80 amperes 5 hp nla 120 amperes 7'/2 ho nla 170 amperes 7'/z hp nla 170 amperes 2-4 Table 2-4 Alternating Current-Three-Phase Motors Allowable Locked Rotor Currents Rated Size 240 Volts 480 Volts 2400 Volts 3 hp 64 amperes 32 amperes n/a 5 hp 92 amperes 46 amperes n/a 7'/ h 127 amperes 63 am eres nla 10 h 162 amperes 81 amperes nla 15 h 232 amperes 116 amperes n/a 20 hp 290 amperes 145 amperes n/a 25 hp 365 amperes 183 amperes n/a 30 hp 435 amperes 218 amperes n/a 40 hp 580 amperes 290 amperes n/a 50 hp 725 amperes 363 amperes 70 amperes 60 hp n/a 435 amperes 87 amperes hp nla 535 amperes 107 amperes �75 0 hp* n/a 725 amperes ' 142 ampere *Over 100 hp-the City should be consulted for allowable locked rotor currents. 2. Where service conditions permit, subject to City approval, reduced-voltage starters may be omitted in the original installation until such time as the City may order the installation of a reduced-voltage starter to be made, and, similarly,the City may at any time require starting current values lower than set forth herein where conditions at any point on its system require such reduction to avoid interference with service. 3. A reduced-voltage starter may be omitted on any motor of a group installation provided that its starting current does not exceed the allowable starting current of the largest motor of the group. 4. A reduced-voltage starter may be omitted on any motor in a group installation provided that its starting current does not exceed three times the maximum demand in amperes of the entire installation. E. Interference With Service. 1. Customers who operate equipment which causes detrimental voltage fluctuations (such as, but not limited to, hoists,welders, radio transmitters, X-ray apparatus, elevator motors, compressors, and furnaces) must reasonably limit such fluctuations upon request by the City. The Customer will be required to pay for whatever corrective measures are necessary. 2. Prior to the installation of any new arc furnace or design modification of an existing furnace, the Customer shall provide basic design information for the installation to aid the City in determining a method of service and the allowable level of load fluctuations. 3. Any Customer who superimposes a current of any frequency upon any part of his electrical system, other than the current supplied by the City, shall, at his expense, prevent the 2-5 transmission of such current beyond the Customer's electrical system. F. Power Factor. The City may require the Customer to provide, at its own expense, equipment to increase the operating power factor of each complete unit of neon, fluorescent, or other gaseous tube lighting equipment to not less than 90%, lagging or leading. G. Wave Form. The City may require that the wave form of current drawn by equipment of any kind be in conformity with good engineering practice. H. Added Facilities. 1. Where a Customer requests and the City agrees to install Added Facilities, the costs thereof shall be borne by the Customer. Such costs shall include continuing costs as may be applicable. Unless otherwise provided by the City Rate Schedules, these Added Facilities will be installed, owned and maintained or allocated by the City solely as an accommodation to the Customer. 2. Added Facilities will be installed under the terms and conditions of a contract in the form on file with the City of Vernon. Such contract will include, but is not limited to, the following terms and conditions: a. Where new facilities are to be installed for Customer's use as Added Facilities, the Customer shall advance to the City the additional installed cost of the Added Facilities over the cost of standard facilities. At the Citys option, the City may finance the new facilities. b. Customers being served by the Customer-financed Added Facilities shall pay a monthly charge of 9$%0.33%of the amount advanced. C. Customers being served by City-financed Added Facilities shall pay a monthly charge of 4-�1.0%of the additional cost associated with the Added Facilities. d. Where existing facilities are allocated for the Customer's use as Added Facilities, the Customer shall pay a monthly charge for the Added Facilities of 1.7 1.0% of the estimated installed cost of that portion of the existing facilities which are allocated to the Customer. e_ Where the City determines the collection of continuing monthly charges is not practicable, the Customer will be required to make an equivalent one-time payment in lieu of the monthly charges. f. All monthly charges shall be reviewed and refiled with the City Council when changes occur in the City's costs for providing such service. Resolution No 4334 Effective 05/20/75 Resolution No. 1030 Effective 06/15/95 2-6 i 1 ORDINANCE NO. 1030 2 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF 3 VERNON AMENDING CHAPTER 9A AND SECTIONS 9A. 1, 9A. 2, 9A. 3 , 9A. 4, 9A.5, AND 9A. 9 AND REPEALING 4 SECTIONS 9A. 6, 9A.7, AND 9A.8 OF THE CODE OF THE CITY OF VERNON REGARDING ELECTRICAL ENERGY 5 DISTRIBUTION IN THE CITY OF VERNON 6 7 WHEREAS, the City Council has the authority to operate an 8 electric system, to make rules and regulations, and to establish 9 rate schedules therefore pursuant to Article XI, Section 9, of the California Constitution; and 10 lI WHEREAS, the rules for electric service for the Vernon 12 Electric System contained in Chapter 9A of the Code of the City of 13 Vernon, California, 1959, were adopted when Energy Services, Inc. , 14a subsidiary of Southern California Edison Company, was operating the Vernon Electric System, by a contract which terminated in 15 1989; and 16 17 WHEREAS, said rules incorporated provisions pertaining to 18 Southern California Edison Company and the California Public Utilities Commission which need to be revised in order to meet the 19 20 unique needs of the Vernon Electric System customers. THE CITY COUNCIL OF THE CITY OF VERNON HEREBY ORDAINS: 21 22 SECTION 1: The City Council of the City of Vernon hereby finds and determines that the recitals contained hereinabove are 23 true and correct. 24 25 SECTION 2 : Chapter 9A, "Electrical Energy Distribution", 26 of the Code of the City of Vernon, California , 1959, is hereby 27 renumbered to Chapter 30 and renamed "Vernon Electric System" . 28 Sections 9A. 1 through 9A. 5 and 9A. 9 are hereby reconstituted as I Article I, "Electrical Energy Distribution" , of Chapter 30 and are 2 amended and renumbered as set forth hereinafter. 3 SECTION 3 : Section 9A. 1 of the Code of the City of 4 ' Vernon, California, 1959 , is hereby renumbered to Section 30. 1 and 5 is amended to read as follows: 6 Sec. 30.1. Title. 7 The electrical energy generation, transmission, and 8 distribution system of the City of Vernon shall be 9 ;� referred to as the Vernon Electric System. 10 SECTION 4 : Section 9A. 2 of the Code of the City of 111 Vernon, California, 1959, is hereby renumbered to Section 30. 2 and 12 is amended to read as follows: 13 Sec. 30.2. General rates. 14 Any change in the rates to be charged and collected 15 for energy supplied by the Vernon Electric System from 16 and after July 29 , 1982 shall be set by resolution of the 17 city council. 18 SECTION 5: Section 9A. 3 of the Code of the City of 19 Vernon, California, 1959, is hereby renumbered to Section 30 . 3 and 20 is amended to read as follows: 21 Sec. 30.3 . Special contract rate. I 22 Any customer whose monthly maximum demand exceeds 10,000 23 kilowatts for any month during the preceding twelve 24 months and who is willing to reduce its demand for 25 service during peak periods may receive service pursuant 26 to Schedule No. SC-Special Contract. 27 SECTION 6: Section 9A. 4 of the Code of the City of ' 28 Vernon, California, 1959, is hereby repealed. -2- 1 � SECTION 7: Section 9A. 5 of the Code of the City of 2 Vernon, California, 1959, is hereby renumbered to Section 30 . 4 and 3 is amended to read as follows: 4 Sec. 30.4. Energy cost adjustment. 5 The existing rates charged for the distribution of 6 energy supplied by the Vernon Electric System for 7 services rendered from and after July 29, 1982 may 8 include an energy cost adjustment billing factor to be 9 determined by the city council. Such changes in the 10 energy cost adjustment billing factor shall be made from 11 time. to time by resolution of the city council when, in 12 the city council's opinion such changes are necessary for 13 the sound financial operation of the light and power 14 operating funds. 15 SECTION 8: Section 9A. 9. of the Code of• the City of 16 Vernon, California, 1959, is hereby renumbered to Section 30. 5 and i 17 is amended to read as follows: 18 Sec. 30.5. Maintenance of rate schedules. 19 The city clerk is hereby directed to keep and 20 maintain three copies of the rate schedules applicable to 21 the Vernon Electric System in the office of the city 22 clerk, and to make them available on request for 23 examination in said office. 24 SECTION 9: Section 9A. 6, "Other rules and regulations, " 25 Section 9A. 7 , "Reference to public utilities commission, " and 28 Section 9A.8 , "Other ordinances amended, of the Code of the City 27 of Vernon, California, 1959, " are hereby repealed. 28 -3- r 1 SECTION 10: Article II, entitled "Rules for Electric 2 Service, " of Chapter 30 of the Code of the City of Vernon, 3 California, 1959, is hereby adopted as set forth in Exhibit A, 4 which is submitted concurrently herewith and made a part hereof by 5 reference. Exhibit A and the Rules attached thereto shall 6 nevertheless be part of the Vernon City Code. i 7 + SECTION 11: Renumbering Shall Not Change Code 8 Provisions. 9 The renumbering of any chapter, article or section of the 10 Code of the City of Vernon shall not constitute a change in its 11 intent or purpose, and it shall have the same effect and 12 enforceability as if it had never been renumbered. 13 SECTION 12 : Any other ordinance or portion thereof in 14 conflict with this ordinance, is hereby repealed. 15 SECTION 13 : If any section, subsection, sentence, 16 clause, or phrase or word of this ordinance is for any reason held 17 to be void or unconstitutional, such decision shall not affect the 18 validity of the remaining portions of this ordinance; it being the 19 intention of the City Council of the City of Vernon to adopt and 20 pass this ordinance and each section, subsection, sentence, clause 21 or phrase thereof irrespective of the fact that one or more of the 22 sections, subsections, clauses, sentences or phrases thereof may 23 be declared void or unconstitutional. 24'' SECTION 14 : There being no newspaper printed, published 25 or circulated in the City of Vernon, the City Clerk is hereby 26 directed to certify to the passage of this ordinance and shall 27 post the same, or cause the same to be posted, within fifteen (15) 28 days after its passage in accordance with Section 36933 of the -4- i 1 Government Code, in three (3) of the most public places in the 2 City of Vernon, to wit: the northwest corner of 38th Street and 3 Santa Fe Avenue, the northeast corner of Leonis Boulevard and 4 Pacific Boulevard, and on the bulletin board in the lobby of the 5 City Hall of said City, located at 4305 Santa Fe Avenue, all in 6 the City of Vernon, County of Los Angeles, State of California. 7 SECTION 15: This ordinance shall be in full force and 8 effect thirty (30) days from and after its passage of the same. 9 APPROVED AND ADOPTED this 16th day of May, 1995. 10 I1 EONIS C . MAL RG, Ma or 12 ATTEST: BRUCE V. MALKENHORST, City Clerk 14 15 16 17 18 is 20 21 22 23 24 25 26 27 28 -5- 1 STATE OF CALIFORNIA } )ss 2 COUNTY OF LOS ANGELES ) 3 I, BRUCE V. MALKENHORST, City Clerk of the City of 4 Vernon, do hereby certify that the foregoing Ordinance, being 5 Ordinance No. 1030, was duly and regularly introduced at a regular 6 meeting of the City Council of the City of Vernon, held on 7 Tuesday, May 2 , 1995, and thereafter finally adopted at a regular 8 meeting of said City Council held on Tuesday, May 16, 1995, and 9 thereafter was duly signed by the Mayor of the City of Vernon, by 10 ' the following vote: zl 12 AYES: 5 Councilmen: Malburg, Ybarra, Davis , McCormick, Gonzales 13 14 NOES• 0 Councilmen: None 15 16 ABSENT: 0 Councilmen: None 17 , 18 BRUCE V. MALKENHORST, City Clerk 19 (SEAL) 20 21 22 23 24 25 26 27 28 -6- 1 Exhibit A 2 3 CHAPTER 30. VERNON ELECTRIC SYSTEM 4 ARTICLE II. RULES FOR ELECTRIC SERVICE 5 Sea. 30.7. Maintenance of rules. 6 The City Clerk is hereby directed to keep and maintain 7 three copies of the rules for electric service of the Vernon 8 Electric System in the office of the City Clerk and to make them 9 available on request for examination in said office. 10 ll Sea. 30.8. Adoption of rules. 12 The rules for electric service for the Vernon Electric 13 System shall consist of the following numbered rules which are 14 made a part hereof by reference: 15 Rule No. 1: DEFINITIONS 16 Rule No. 2 : DESCRIPTION OF SERVICE 17 Rule No. 3: APPLICATION FOR SERVICE 18 Rule No. 4 : CONTRACTS 19 Rule No. 5: SPECIAL INFORMATION REQUIRED ON FORMS 20 Rule No. 6: ESTABLISHMENT AND REESTABLISHMENT OF CREDIT 21 Rule No. 7 : PREPAYMENTS 22 Rule No. 8: NOTICES 23 Rule No. 9: PRESENTATION AND PAYMENT OF BILLS 24 Rule No. 10: DISPUTED BILLS 25I Rule NO. 11: DISCONTINUANCE AND RESTORATION OF SERVICE 26 ' Rule No. 12 : RATES AND OPTIONAL RATES 27 Rule No. 13: TEMPORARY SERVICE 28 Page 1 of 2 EXHIBIT A 1 Rule No. 14: SHORTAGE OF SUPPLY AND INTERRUPTION OF 2 DELIVERY 3 Rule No. 15: LINE EXTENSIONS 4 Rule No. 16: SERVICE CONNECTIONS AND FACILITIES ON 5 CUSTOMER'S PREMISES 6 Rule No. 17: METER TESTS AND ADJUSTMENT OF BILLS FOR 7 METER ERROR 8 Rule No. 18: SUPPLY TO SEPARATE PREMISES AND USE BY 9 OTHERS 10 11 12 13 14 i 15 ' 16 17 18 19 20 21 22 23 24 25 26 27 28 Page 2 of 2 CITY OF VERNON LIGHT & POWER DEPARTMENT RULES FOR ELECTRIC SERVICE Rule No. 1: DEFINITIONS A. General. For the purpose of these Rules the terms and expressions ligted below shall have the meanings set forth opposite them 4hen initially capitalized in the text: 1. Added Facilities: Added Facilities shall consist of the following: ' a. Facilities requested by a Customer which are in addition to or in substitution for standard facilities. Standard facilities consist of those which the City would normally provide for delivery of service at one point, through one meter, at one standard Nominal Voltage under its Rate Schedules, or b. A pro rata portion of the facilities requested by a Customer, allocated for the sole use of such Customer, which would not normally be allocated for such sole use. 2 . Application: A written request to the City for electric service as distinguished from an inquiry as to the availability or charges for such service. 3 . Billinct Demand: The load or demand used for computing charges under rate schedules based on the size of the Customer's load or demand. It may be the connected load, the measured maximum demand, or a modification of either as provided for by the applicable Rate Schedule. 4 . Billing Period: The time interval between two consecutive meter readings that are taken for billing purposes. 5. City Council : The City Council of the City of Vernon. 6. City's Operating Necessity: The utilization, under certain circumstances, of facilities or practices not ordinarily employed which contribute to the overall efficiency of the City's operations; it does not refer to Customer convenience nor to the use of facilities or adoption of practices required to comply with applicable laws, ordinances, rules or regulations, or similar requirements of public authorities. 1 - 1 Rule NO. 1: DEFINITIONS (Continued) 7. Connected Load: The sum of the rated capacities of all of the Customer's equipment that dan be connected to the City's lines at any one time as more completely described in the Rate Schedules. B. Customer: The Person in whose name service is rendered as evidenced on the Application, contract, or agreement for that service, or, in the absence of a signed instrument, by the receipt &nd payment of bills regularly issued in the Customer's name regardless of the identity of the actual user of the service. 9 . Customer's Mailing Address: The address specified in a Customer's Application or contract, or any other address subsequently given to the City by the Customer, to which any notice or other communication is to be mailed. 10. Date of Presentation: The date upon which a bill or notice is mailed or delivered by the City to the Customer. 11. Distribution Line: Overhead pole lines and/or underground facilities consisting of cable and duct system (including conduits, ducts, manholes and vaults) which are operated at nominal distribution voltages as specified in Rule No. 2 . 12 . Domestic Service: Service for residential use at a dwelling. 13 . General Service: Service to any Customer except those eligible for Domestic, Street Lighting, Outdoor Area Lighting, Traffic Control, or Standby Service. 14. Line Extension: All facilities, excluding transformer, service wires, and Meter required to extend electric service from the existing permanent facilities to the Point of Delivery to the Customer. 15. Maximum Demand: The average kilowatts during the specified time interval when the Customer's use of energy is greatest in the billing period as indicated or recorded by the City's Meter. 16. Meter: The instrument owned, installed and maintained by the City and used for measuring the electricity delivered to the Customer. 17. Nominal Voltage: The approximate voltage between conductors in a circuit or system of a given class, assigned for the purpose of convenient designation. For any specific Nominal Voltage, the operating voltage actually existing at various 1 - 2 Rule No. 1: DEFINITIONS (Continued) points and at various times on the system is subject to normal distribution variation. 18 . Permanent Service: Service which, in the opinion of the City, is of a permanent and established character. 19. Person: Any individual, partnership, corporation, public agency, or other organization operating as a single entity. r 20. Aoint of Delivery: The point where conductors of the City are connected to the conductors of the Customer, regardless of the location of the City's Meters or transformers. 21. Premises: The area of land employed_ in a single enterprise, as determined by the City, whether or not divided by a dedicated street, highway, other public thoroughfare, or a railway_ 22 . Rate Charges: Charges in the Rate Schedules may .include the following: a. Customer Charge: That portion of the charge for service which is a fixed amount without regard to Connected Load, Maximum Demand, or energy consumption in accordance with the Rate Schedule. b. Demand Charge: That portion of the charge for service which varies with the Billing Demand in accordance with the Rate Schedule. C. Energy Charge: That portion of the charge for service which varies with the quantity of energy consumed in accordance with the Rate Schedule. d. Minimum Charge: The least amount for which service will be rendered in accordance with the Rate Schedule. e. Service Charge: That portion of the charge for service which is a fixed amount based on connected load in accordance with the Rate Schedule. f. Standby Charge: That portion of the charge for Standby Service which is a fixed amount based on the maximum load the City stands ready to supply in accordance with the Rate Schedule. 23. Rate Schedule: The Rate Charges, fees and conditions for a particular class or type of service. A Rate Schedule, as referred to herein, shall include all the wording on the 1 - 3 Rule No. 1: DEFINITIONS (continued) applicable schedule, such as, but not limited to, the following headings therei-n: Schedule Number, Class of Service, Applicability, Territory, Rates, and Special Conditions. 24 . Rules: These "Rules for Electric service" which set forth the administration of all Rate Charges, fees and services. 25. Service Wtres: The group of conductors, whether overhead or 4nderground, necessary to connect the service entrance conductors of-, the Customer to the City supply line, regardless of the location of the City's Meters or transformers. 26 . Standby Service: Service supplied to Customers who normally • obtain their power requirements from sources other than the City. Under this service the City provides a Permanent service connection to supply the Customer's contracted load in accordance with the provisions of the standby schedule. 27. Strect Lichtipg service: Service to any lighting apparatus used primarily for the illumination of streets, alleys, highways, or other public ways. 28. Temporary Service: Service for enterprises or activities which are temporary in character or where it is known in advance that service will be of limited duration. Service, which in the opinion of the City, is for operations of a speculative character or the permanency of which has not been established, also is considered Temporary Service. 29 . X-Ray Service: Service to any apparatus transforming electric energy into radiations similar to light but having wave lengths of from . 0006 to 2 angstroms. Resolution No. 3087 Effective 04/07/70 ordinance No. 1030 Effective 06/15/95 1 — 4 CITY OF VERNON LIGHT & POWER DEPARTMENT RULES FOR ELECTRIC SERVICE Rule No. 2: DESCRIPTION OF SERVICE A. General. The following general rules shall apply to all -services: f, I. The character of service available at any particular location should be ascertained by inquiry at the City's office. 2. The Rate Schedules are applicable for service where the ' Customer purchases its entire electrical requirements from the City, except where such schedules specifically provide otherwise, and are not applicable where a part of the Customer's electrical requirements are supplied from some other source. 3 . The Rate Schedules are applicable for service provided from overhead distribution facilities and underground distribution facilities in accordance with the provisions of Rules 15 and 16. 4. Alternating current service at a nominal frequency of 60 Hz will be supplied. 5. Voltages referred to in the Rate Schedules are Nominal Voltages. B. Phase and Voltage specifications. The following phases and voltages are supplied by the City: 1. Standard Nominal Voltages. a. Standard Nominal Voltages for distribution are as follows: 120/208, 120/240, 277/480, 4160, 7200, 16500 or 66000 volts. b. For the City's Operating Necessity, the City may elect to supply a Customer from lines of 66000 volts. In such case, the Customer may select as a standard delivery voltage one of the following: 4160, 7200, 16500 volts, or such other voltage as the City may approve, provided that in no case shall a Customer be required to advance to the City a greater amount of money to obtain service than it would be required to advance under the City's Rules applicable to the particular load, if that customer 2 - 1 Rule No. 2: DESCRIPTION OF SERVICE (Continued) was served from the City's nearest 7200 or 16500 volt line. C. Where the City maintains four-wire wye-connected polyphase secondary mains: 120/208 volts. d. Where the City maintains four-wire delta-connected polyphase secondary mains: 120/240 volts. r 2 . Single-phase Service. a. The general description of single-phase service provided by the City is given in Table 2-1. Table 2-1 Minimum Load Maximum Load Voltage Required Allowed 120/240 volts none 400 amp. main switch b. The maximum size 120 volt single-phase motor allowed is 1 hp and the maximum size 240 volt, or higher voltage, single-phase motor allowed is 10 hp. C. Single-phase service may be supplied to installations having a proposed main service switch in excess of the switch capacities specified above, in Table 2-1, provided the approval of the City has been first obtained as to the number and size of switches, circuits, and related facilities. 120/240 volt installations will be supplied by one of the following methods as determined by the city: (1) From two or three separate 120/240 volt service connections at one location. Energy so supplied will be totalized for billing purposes. The connected load on any service connection shall not be greater than twice that on any other service connection. (2) From one 120/240 volt connection where the proposed main service switch does not exceed 600 amperes capacity. d. Where the City maintains four-wire wye-connected 120/208 volt secondary mains, single-phase service is supplied at 120/208 volts, three-wire, for which the maximum allowed 2 - 2 Rule No. 2: DESCRIPTION OF SERVICE (continued) is a 100-ampere main switch. Loads in excess of a 100- ampere main switch will be supplied at 120/208 volts , three-phase, four-wire. 3. Three-phase Service. a. The general description of three-phase service provided by the City is given in Table 2-2 . Table 2-2 Minimum Maximum Maximum Connected Demand Main Switch ' Voltage Load Required Allowed Capacity Allowed 120/208 120/240 volts 3 kVA 1000 kVA 4000 amps. f 277/480 volts 25 kVA 3000 kVA 4000 amps. 4160 volts Consult City 12000 kvA 3000 amps. 7200 volts Consult City 30000 kVA Not specified 16500 volts Consult City 30000 kVA Not specified b. Domestic Service. In areas where the City does not maintain three-phase secondary mains, only single-phase service will be supplied unless the Customer's load includes at least one motor rated in excess of 10 hp. C. Where three-phase service is supplied from a four-wire wye-connected 120/208 volt service, the maximum demand: allowed is 1,000 kVA. d. Service to all loads of 1, 000 kVA maximum demand, or over, must be approved by the City as to adequacy of facilities for service. e. Loads on three-phase service must be balanced between phases in accordance with good engineering practice. f. Three-phase service may be supplied to installations having a proposed main service switch in excess of the switch capacities specified above, in Table 2-2, provided approval of the City has first been obtained as to the number and size of switches, circuits and related facilities. Such service will be supplied from two or three separate service connections at one location. Energy so supplied will be totalized for billing purposes. The loads will be balanced as closely as practicable between the services. 2 - 3 Rule No. 2: DESCRIPTION OF SERVICE (Continued) 4 . Combined single-phase Service and Three-phase Service. a. Service may be supplied at 120/208 volts four-wire wye- connected where the City does not maintain four-wire secondary polyphase mains provided: (1) written application is made for such service by the Customer; (2) the Customer's load is of such a size as to require an individual transformer installation of not less than 15 INA of transformer capacity; and (3) the customer �. provides space acceptable to the City on its Premises to accommodate the installation of the City's facilities when, in the opinion of the City, such space is considered necessary. b. In underground areas where the City maintains 120/208 volt or 240 volt three-phase m2izns, service may be supplied at 277/480 volts, four--wire provided. (1) written application is made far such service by the Customer, and (2) the Customer provides space acceptable to the City on its Premises to accommodate the installation of the City's facilities when, in the opinion of the City, such space is considered necessary. C. Service may be supplied at 120/240 volts four-wire delta- connected where the City does not maintain four-wire secondary polyphase mains provided: (1) written application is made for such service by the Customer; (2) the Customer's load is of such a size as to require an individual transformer installation of not less than 15 kvA of transformer capacity; (3) the imbalance between phases is less than 100 kW; and (4) the Customer provides space acceptable to the City on its Premises to accommodate the installation of the City facilities when, in the opinion of the City, such space is considered necessary. d. The maximum demand allowances for combined single-phase and three-phase are set forth in B.3 . above. 5. At the option of the City, the above voltage and phase specifications may be modified because of service conditions at the location involved. C. Motor Protection and Equipment. Customer's motor equipment must conform with the following requirements: 1. Motors that cannot be safely subjected to full rated voltage on starting or that drive machinery of such a nature that the machinery, itself, or the product it handles will not permit 2 - 4 Rule No. 2: DESCRIPTION OF SERVICE (continued) the motor to resume normal speed upon the restoration of normal supply voltage shall be equipped with devices that will disconnect them from the line upon failure of supply voltage and that will prevent the automatic reconnection of the motors upon restoration of normal supply voltage. 2. All motors of 1 hp or larger shall be equipped with thermal relays, fuses, or other automatic overcurrent interrupting devices td disconnect completely such motors from the line as (a protection against damage due to overheating. 3 . Three-phase motors driving elevators, hoists, tramways, cranes, conveyers, or other equipment, which would create hazard to life in the event of uncontrolled reversal of motor rotation, shall be provided with reverse-phase and open-phase protection to disconnect completely the`motors from the line in the event of phase reversal or loss of one phase. Y D. Allowable Motor Starting Currents. The starting current drawn from the City lines shall be considered the nameplate locked rotor current or that guaranteed by the manufacturer. At its option the City may determine the starting current by test, using a stop ammeter with not more than 15% overswing or an oscillograph, disregarding the value shown for the first 10 cycles subsequent to energizing the motor. 1. If the starting current for a single motor exceeds the value stated in Tables 2-3 and 2-4, reduced voltage starting or other suitable means must be employed, at the Customer's expense, to limit the current to the value specified, except where specific exemptions are provided in Sections D. 2, 3 and 4 . Table 2-3 Alternating Current-Single-phase Motors Allowable Locked Rotor Currents Rated Size 1.20 Volts 240 Volts 1 hp & less 50 amperes 36 amperes 1 1/2 hp n/a 48 amperes 2 hp n/a 60 amperes 3 hp n/a 80 amperes 5 hp n/a 120 amperes 7 1/2 hp n/a 170 amperes 10 hp n/a 220 amperes 2 - 5 Rule No. 2: DESCRIPTION OF SERVICE (continued) Table 2-4 Alternating Current-Three-Phase Motors Allow a_ble Locked Rotors Currents Rated Size 240 Volts 480 Volts 2400 Volts 3 hp 64 amperes 32 amperes n/a 5 hp- . 92 amperes 46 amperes n/a 7 k/2 hp 127 amperes 63 amperes n/a 10 p 162 amperes 81 amperes n/a 15 hp 232 amperes 116 amperes n/a 20 hp 290 amperes 145 amperes n/a 25 hp 365 amperes 183 amperes n/a 30 -hp 435 amperes 218 amperes n/a 40 hp 580 amperes 290 amperes n/a 50 hp 725 amperes 363 amperes 70 amperes 60 hp n/a 435 amperes 87 amperes 75 hp n/a 535 amperes 107 amperes 100 hp* n/a 725 amperes 142 amperes *Over 100 hp - the City should be consulted for allowable locked rotor currents. 2 . Where service conditions permit, subject to City approval, reduced-voltage starters may be omitted in the original installation until such time as the City may order the installation of a reduced-voltage starter to be made, and, similarly, the City may at any time require starting current values lower than set forth herein where conditions at any point on its system require such reduction to avoid interference with service. 3 . A reduced-voltage starter may be omitted on any motor of a group installation provided that its starting current does not exceed the allowable starting current of the largest motor of the group. 4 . A reduced-voltage starter may be omitted on any motor in a group installation provided that its starting current does not exceed three times the maximum demand in amperes of the entire installation. E. Interference With Service. 1. Customers who operate equipment which causes detrimental voltage fluctuations (such as, but not limited to, hoists, welders, radio transmitters, X-ray apparatus, elevator motors, compressors, and furnaces) must reasonably limit such fluctuations upon request by the City. The Customer will be required to pay for whatever corrective measures are necessary. 2 - 6 Rule No. 2: DESCRIPTION OF SERVICE (continued) 2 . Prior to the installation of any new arc furnace or design modification of an existing furnace, the Customer shall provide basic design information for the installation to aid the City in determining a method of service and the allowable level of .load fluctuations. 3. Any Customer who superimposes a current of any frequency upon any part of his electrical system, other than the current supplied by the City, shall, at his expense. prevent the transmission of such current beyond the Customer's electrical system. F. Dower Factor. The City may require the Customer to provide, at its own expense, equipment to increase the operating power factor of each complete unit of neon, fluorescent, or other gaseous tube lighting equipment to not less than 90%; lagging or leading. G. wave Form. The City may require that the wave form of current drawn by equipment of any kind be in conformity with good engineering practice. H. Added Facilities. 1. Where a Customer requests and the City agrees to install Added Facilities, the costs thereof shall be borne by the Customer. Such costs shall include continuing costs as may be applicable. Unless otherwise provided by the City Rate Schedules, these Added Facilities will be installed, owned and maintained or allocated by the City solely as an accommodation to the Customer. 2 . Added Facilities will be installed under the terms and conditions of a contract in the form on file with the City of Vernon. Such contract will include, but is not limited to, the following terms and conditions: a. where new facilities are to be installed for Customer's use as Added Facilities, the Customer shall advance to the City the additional installed cost of the Added Facilities over the cost of standard facilities. At the City's option, the City may finance the new facilities. b. Customers being served by the Customer-financed Added Facilities shall pay a monthly charge of 0.90 of the amount advanced. C. Customers being served by City-financed Added Facilities shall pay a monthly charge of 1.7% of the additional cost associated with the Added Facilities. 2 - 7 Rule No. 2; DESCRIPTION OF SERVICE (continued) d. where existing facilities are allocated for the Customer's use as Added Facilities, the Customer shall pay a monthly charge for the Added Facilities of 1.7; of the estimated installed cost of that portion of the existing facilities which are allocated to the Customer. e. Where the City determines the collection of continuing monthly charges is not practicable, the Customer will be required to Make an equivalent one-time payment in lieu of the monthly charges. f. All monthly charges shall be reviewed and refiled with the City Council when changes occur in the City's costs for providing such service. Resolution No. 4334 Effective 05/20/75 Ordinance No. 1030 Effective 06/15/95 2 - 8 CITY OF VERNON LIGHT & POWER DEPARTMENT RULES FOR ELECTRIC SERVICE Rule No. 3 : APPLICATION FOR SERVICE A. Application for Service. Each applicant for electric service will be required to sign an Application on a furm provided by the City knd, upon request, will be required to furnish the following information: J. Name of applicant (if not an individual, insert business organization and person to be served) . 2. Date and place of Application. 3. Location of Premises to be served. " 4 . Date applicant will be ready for service. 5. Whether the Premises have been heretofore supplied. 6. Purpose for which service is to be used. 7. Applicant's mailing address. 8. Whether applicant is owner or tenant of, or agent for, the Premises. 9. Rate Schedule desired if optional rate is available. 10. Information to establish credit of applicant. 11. Such other information as the City may reasonably require. The Application is a request for service and does not in itself bind the. City to provide service except under reasonable conditions, nor does it bind the applicant to take service for a longer period than the minimum requirements of the Rate Schedule. B. Individual Liability for Joint Service. Two or more Persons who join in one Application shall be jointly and severally liable thereunder and shall be billed by means of a single periodic bill mailed to the Person designated on the Application to receive the bill. C. Change in Customer's Equipment or operations. Customers shall give the city written notice of the extent and nature of any material change in the size, character, or extent of its equipment or operations for which the City is supplying electric service before making any such change. Ordinance No. 806 Effective 01/15/70 Ordinance No. 1030 Effective 06/15/95 3 - 1 CITY OF VERNON LIGHT & POWER DEPARTMENT RULES FOR ELECTRIC SERVICE Rule No. 4: CONTRACTS A. Facilities Contracts. A contract or agreement to pay for the use, installation, or removal of facilities will be required in the folloking cases: 1. If the provisions of the Rate Schedules so specify, in which case the terms of the contract will be governed thereby. I. ' Where it is necessary to install a Line Extension, in which case a contract for a period of three years may be required; except that, when Temporary Service is to be supplied under the provisions of Rule No. 13, the contract will cover the period of contemplated operations, but not longer than three years. 3 . Where any Customer desires new or increased distribution facilities for Temporary service, in which case the City may require such Person to pay to the City, in advance or otherwise, the estimated cost installed, plus the estimated cost of removal, less the estimated salvage of the facilities necessary for furnishing service in accordance with provisions of Rule No. 13 . 4. When a Person, whether or not a Customer, desires to have the City modify, rearrange, relocate, or remove any of its facilities, the City if it agrees to make such changes may require the Person, at whose request the changes are made, to agree to pay, in advance or otherwise, the cost to the City of making the changes. B. Contracts with Governmental Agencies. If Street Lighting Service or other service is requested by a governmental agency, a contract will be required by the City. C. city Council Approval. Standard contract forms shall be approved by the City Council by resolution pursuant to City Charter Section S. 10. Such standard contracts may be executed by the City Administrator or his designee in accordance with these Rules and the Rate Schedules without additional City Council approval. Ordinance No. 806 Effective 01/15/70 Ordinance No. 1030 Effective 06/15/95 4 - 1 CITY OF VERNON LIGHT & POWER DEPARTMENT RULES FOR ErrECTRIC SERVICE Rule No. 5: SPECIAL INFORMATION REQUIRED ON FORMS A. Applications and Contracts. Each Application and contract for electric service will contain the following provision: This Application or contract for services shall at all times be subject to' the rules and regulations of the City of Vernon, which may be changed or modified by the City Council from time "to time in the exercise of its jurisdiction. B. Customer's Bills. Information printed on each bill for electric service will include the following: x PLACE OF PAYMENT The City of Vernon Customer Service Division, 4305 Santa Fe Avenue, Vernon, CA 90058-1786 is the only authorized payment station. If paid elsewhere, the City is not responsible for payments delayed in reaching said office. Checks shall be made payable to the City of Vernon. PAYMENT Bills are due and payable on the Date of Presentation shown on this bill. Bills become delinquent and subject to a late fee if payment is not received (postmark not acceptable) by the City of Vernon 20 days thereafter. If not paid within this time, service may be discontinued. If discontinued, a reconnection charge, pre-payment of the closing bill equal to twice the average monthly bill, and the entire delinquent bill shall be remitted in full before a discontinued service will be reestablished. RETURNED CHECK I. If a check for payment is returned unpaid, a service charge will be assessed. 2 . Payment in lieu of the returned check will be accepted only in the form of cash, money order or cashier's check. 3 . Personal or business checks will not be accepted for a period of at least 6 months on accounts with more than one returned check within a 12-month period. 5 - 1 Rule NO. 5: SPECIAL INFORMATION REQUIRED ON FORMS (continued) INFORMATION If you question this bill, please request an explanation from the Customer Service Division. If you thereafter believe that you have been billed incorrectly, to avoid discontinuance of service send your payment under protest to the Customer Service Division with a copy of the bill and a written statement supporting your belief that the bill is not correct. such statements regarding disputed electric bills should be {eade to the attention of the Director of Light and Power Department. , Such statements regarding disputed water bills should be made to the attention of the Director of the Water Department. The respective Director will review the basis of the billed amount and authorize any adjustment required in accordance with his findings. if the matter is not satisfactorily resolved by the respective Director, you may petition the City Council for final determination. If you need further information, please call the Customer Service Division at (213) 583-8811 between the hours of 7 : 00 a.m. and 5: 30 p.m. , Monday through Thursday. RULES AND REGULATIONS The City of Vernon Electric Service Rules and the Water Rules and Regulations, under which service is rendered, are on file at the Customer Service Division. If you wish a copy of any information pertaining to your account, please write to the Customer Service Division. MEASURES OF CONSUMPTION KWH or kilowatt-hour is the basic measurement of your electricity use. One 100-watt bulb burning for 10 hours will consume one kilowatt-hour. CCF or one hundred cubic feet is the basic measurement of your water use. One hundred cubic feet equals approximately 748 gallons. C. Final Notice. The following statement will be printed on each Final Notice: This notice includes a late fee. If you question this bill please request an explanation from the Customer Service Division. If you thereafter believe that you have been billed incorrectly, to avoid discontinuance of service send your payment under protest to the Customer service Division with a copy of the bill and a written statement supporting your belief that the bill is not correct. Such statements 5 - 2 Rule No. 5: SPECIAL INFORMATION REQUIRED ON FORMS (Continued) regarding disputed electric bills should be made to the attention of the Director df Light and Power Department. Such statements regarding disputed water balls should be made to the attention of the Director of the Water Department. The respective Director will review the basis of the billed amount and authorize any adjustment required in accordance with his findings. If the matter is not satisfactorily resolved by the respective Director, you may petition the City Council for final det4rmination. If you need further information, please &all the Customer Service Division at (213) 583-8811 between the hours of 7 : 00 a.m. and 5: 30 p.m. , Monday through Thursday. If a discontinued service is reestablished, a reconnection charge will be assessed. Resolutions No. 4537 Effective 02/21/78 Ordinance No. 1030 Effective 06/15/95 5 — 3 CITY OF VERNON LIGHT & POWER DEPARTMENT RULES FOR ELECTRIC SERVICE Rule No. 6: ESTABLISHMENT AND REESTABLISHMENT OF CREDIT A. EstablishLgent of Credit. Each applicant, before receiving service, w;'1 fie required to make prepayment in accordance with Rule Ac. 7 or to satisfactorily establish credit. Credit will be deemed established. by on one or more of the following means at the sole discretion of the City: 1. -The applicant is the owner with a subsvtantial equity, of value satisfactory to the City, in the Premises to be served. 2 . The applicant furnishes a guarantor, satisfactory to the City, r to secure payment of bills for electric service. 3 . The applicant has been a Customer of the City for a similar type of service within the last two years and during the last twelve consecutive months of that prior service did not have more than two past due bills and provided that the credit of the applicant is unimpaired in the opinion of the City. 4. The applicant's credit is otherwise established to the satisfaction of the City. B. Reestablishment of Credit. An applicant or Customer will be required to make prepayment in accordance with Rule No. 7 and/or to reestablish credit in accordance with Rule No. 6 under any of the following conditions: 1. In case applicant previously has been a Customer of the City and its electric service has been discontinued by the City during the last twelve months because of nonpayment of bills. 2 . In case a Customer has failed to pay bills before they become past due as prescribed in Rule No. 11--A, and has further failed to pay such bills within two (2) City working days after presentation of a discontinuance of service notice for nonpayment of bills. This condition will apply regardless of whether or not service has been discontinued. 6 -- 1 Rule No. 6: ESTABLISHMENT AND RE-ESTABLISHMENT OF CREDIT (co.Limcd) 3. In case the conditions of service or basis on which credit was originally established have, in the opinion of the City, materially changed. t Resolution No. 4537 Effective 02/21/78 Ordinance No. 1030 Effective 06/15/95 1 6 - 2 CITY OF VERNON LIGHT & POWER DEPARTMENT RULES FOR ELECTRIC SERVICE Rule No. 7: PREPAYMENTS A. Amount of Prepayment. Prepayment shall be required from any applicant or Customer which has not established or reestablished credit. The amount of the prepayment shall be twice the estimated average monthly bill. B. Return of Prepayment. 1. ' When an application for electric service has been cancelled prior to the establishment of electric service, the prepayment will be applied to any charges applicable in accordance with * the Rate Schedules and the applicant will be so advised. The excess portion of the prepayment will be refunded. 2 . When the Customer's credit has been established in accordance with Rule No. 6, the City will apply the balance of the prepayment as a credit against future bills. 3 . Upon discontinuance of electric service, the City will apply the prepayment to any outstanding charges and the excess portion of prepayment will be refunded. Resolution No. 4782 Effective 03/31/81 Ordinance No. 1030 Effective 06/15/95 7 — 1 CITY OF VERNON LIGHT & POWER DEPARTMENT RULES FOR EDECTRIC SERVICE Rule No. 8: NOTICES A. A Notice to a Customer. When a notice from the City to a Customer is required. it will normally be given in writing, either mailed to the Customer's Mailing Address or delivered to the Customer's place of business, except that in emergencies the City may give an oral notice. 1. Final Notice. The "Final Notice" for nonpayment of a delinquent account shall be sent _ by first class mail, addressed to the Customer to whom the service is billed, at least 10 calendar days prior to proposed termination of service. 2 . Notice of Call. Notice of discontinuance of service for nonpayment of a delinquent account shall be given by delivery of a "Notice of Call" to the Customer's place of business at least 48 hours prior to proposed termination of service. B. A Notice from a Customer. A notice from a Customer to the City may be given by written communication mailed to the Customer Service Division or may be given orally by the Customer or its authorized agent at the Customer Service Division except when written notice is specifically required in the applicable Rate Schedule. Resolution No. 4537 Effective 02/21/78 Ordinance No. 1030 Effective 06j15/95 8 — 1 CITY OF VERNON LIGHT & POWER DEPARTMENT RULES FOR EBECTRIC SERVICE Rule No. 9: PRESENTATION AND PAYMENT OF BILLS A. Presentation of Bills. 1. tilling Period. Bills for electric service will be presented monthly or ?is otherwise provided in the applicable Rate Schedules. At the sole discretion of the City, a Customer may ,be required to make weekly payments based on estimated usage. 1. Metered Service. Bills for metered service will be based on Meter registrations. Meters will be read as required for the preparation of regular bills, opening bills, and closing * bills. It may not be possible always to read meters on the same day of the month, and if a monthly Billing Period contains less than 27 days or more than 33 days, a pro rata computation in the bill will be made. 3 . Pro Rata Computation. All opening bills, closing bills, and bills for electric service presented for periods of less than 27 days or more than 33 days on a monthly Billing Period will be computed in accordance with the applicable Rate Schedule, but the size of the energy blocks, and the amount of the Customer, Service, Demand, or Minimum Charges, specified therein, will be prorated on the basis of the ratio of the number of days in the period to the number of days in an average monthly period, which for this purpose shall be taken as 30 days, or as otherwise provided in Rate Schedules. Energy usage (kWh) will not be prorated. When Temporary Service is furnished and the Customer has paid the estimated cost of installing and removing the service facilities, no proration will be made on these costs. B. Reading of Separate Meters Not Combined. For the purpose of billing, each Meter upon the Customer's premises will be considered separately, and the readings of two or more Meters will not be combined except as follows: 1. Where combinations of Meter readings are specifically provided for in the Rate Schedule. 2 . Where the City's Operating Necessity requires the use of more than one Meter. 9 - 1 Rule No. 9: PRESENTATION AND PAYMENT OF BILLS (Conamedl C. Payment of Bills. when bills are presented monthly, they will be due and payable on or before twenty (20) days after the Date of Presentation. When bills are presented weekly, they will be due and payable on or before five (5) days after the Date of Presentation. Payment shall be made at the City of Vernon Customer Service Division, 4305 Santa Fe Avenue, Vernon, CA 90058-1786. D. Re_turned Check Charge. The City will require payment of a charge, for any" check returned from the bank unpaid. Payment in lieu 6f the returned check will be accepted only in the form of cash, money order -,or cashier's check. Personal or business checks will not be accepted for a period of at least 6 months on accounts with more than one returned check within a 12-month period. Resolution No. 4782 Effective 02/1/81 Ordinance No. 1030 Effective 06/15/95 9 - 2 CITY OF VERNON LIGHT & POWER DEPARTMENT RULES FOR ELECTRIC SERVICE Rule No. 10: DISPUTED BILLS A. Request for Billing Review. Any request for review of a bill filed by a Customer shall he reviewed by a Customer Service Division representative. The review shall include consideration of whether the Customer should be permitted to amortize the unpaid balance of his account over a reasonable period of time. B. Review by Director of Light & Power. Any Customer, whose request for review regarding a bill for electric service has resulted in a determination by the Customer Service Division representative which is adverse, may have such determination reviewed by the Director of Light and Power of the City of Vernon. 1. To avoid discontinuance of service, the Customer shall pay the amount claimed by the City to be due. Such payment shall deemed to be made under protest. In lieu of such payment, a Customer whose credit has been established pursuant to Rule No. 6 may request to amortize payments. Approval of such amortized payments shall be at the sole discretion of the City. 2 . Checks or other forms of remittance for such payment under protest shall be accompanied by a letter of explanation to the Director of Light and Power. 3 . Upon receipt of the payment under protest and letter of explanation the Director will review the basis of the billed amount. After review the Director may: a. If special circumstances exist, waive returned check charge, reconnect charge, and late charge, or b. Recommend any adjustment to electric charges as determined by the review. Any recommendation for a credit or refund must be approved by the. City Administrator; and if the amount exceeds $10, 000, City Council approval will also be required. 4 . If the matter is not satisfactorily resolved by the Director, the Customer may petition the City Council for a final decision. 10 - 1 Rule No. 10: DISPUTED BILLS (cmLinucd) C. Discontinuance of Service. Failure of the Customer to make payment under protest of the diLputed bill prior to the expiration date of a 48 hour Notice of Call will warrant discontinuance of service without further notice. D. Additional Bills During Review. If before completion of the City Council's review, additional bills become due which the Customer wishes to dispute, the additional amounts claimed by the City to be due for such additional bills shall be paid before they become past due and failure to do so will warrant discontinuance of service in accordance with Rule No. 11. Resolution No. 4537 Effective 02/21/78 ordinance No. 1030 Effective 06/15/95 10 — 2 CITY OF VERNON LIGHT & POWER DEPARTMENT RULES FOR ELECTRIC SERVICE Rule No. 11: DISCONTINUANCE AND RESTORATION OF SERVICE A. Past Due Bills. When bills are presented monthly, they will be considered past due if payment is not received within 20 days after the Date of Presentation. When bills are presented weekly, they, will be considered past due if payment is not received within 5 days after the Date of Presentation. , B. Nonpayment of Bills. 1. A Customer's service may be discontinued for nonpayment of a bill for service previously rendered by the City provided such bill is not paid within 48 hours after a notice of discontinuance of service by delivery of a "Notice of Call. " 2 . If a Customer is receiving more than one service, any or all services may be discontinued when any service, regardless of location, is discontinued for nonpayment. 3 . Under no circumstances may service be discontinued for nonpayment of a bill to correct previously billed incorrect charges for a period in excess of the preceding three months, unless such incorrect charges have resulted from the Customer not abiding by these Rules. 4 , Service will not be discontinued on any Saturday, Sunday or legal holiday for delinquency in payment of a bill for electric service. C. violations or Unsafe Equipment. 1. The City may refuse or discontinue service to a Customer if the City determines: a. That any part of the Customer's wiring or other equipment, or the use thereof, is unsafe or in violation of applicable laws, ordinances, rules or regulations of public authorities. b. That any condition existing upon the Customer's Premises endangers the City's service facilities. 11 - 1 Rule No. 11: DISCONTINUANCE AND RESTORATION OF SERVICE (C«nw»ta) 2 . Such discontinuance shall continue until wiring, equipment, or use has been put in a safe condition or the violation remedied. In the event of a dangerous condition, the City may without giving prior notice immediately discontinue service to any Premises. 3 . The City does not assume any responsibility of inspecting or repairing the Customer's wiring or other equipment or any part thereof a'hd assumes no liability therefore. L D. Service Detrimental to other Customers. The City will not provide service for equipment, the operation of which will be detrimental to the service of the City's other Customers, and will discontinue electric service to any Customer which continues to dperate such equipment after having been `given notice to cease by the City. E. Fraud. The City may refuse or discontinue service immediately if the acts of the Customer or the conditions upon its Premises are such as to indicate an intent to defraud the City. F. Restoration of Service. Before restoring service that has been discontinued for nonpayment of a bill or for a violation: 1. The City may require payment of a reconnection charge. In case the Customer requests that such service be reconnected on the day of its request or outside of regular business hours, the reconnection charge may be increased to cover the cost thereof. 2 . The Customer will be required to reestablish credit in accordance with Rule No. 6 or make prepayment in accordance with Rule No. 7 . 3 . The Customer will be required to pay all delinquent bills. Resolution No. 4537 Effective 02/21/78 Ordinance No. 1030 Effective 06/15/95 11 — 2 CITY OF VERNON LIGHT & POWER DEPARTMENT RULES FOR ELECTRIC SERVICE Rule No. 12: RATES AND OPTIONAL RATES A. Effective Rates. The rates charged by the City for electric service are trmse approved by resolution of the City Council. A copy of complete Rate Schedules will be maintained for public inspection at the. City Clerk's Office. B. optional Rates. If there are two or more Rate Schedules or optional provisions applicable to the class of service requested by the applicant, the City will call applicant's attention thereto at the time application is made, and the applicant must designate which Rate Schedule or optional provision is desired. C. Change in Equipment or Operation. When the Customer, in accordance with Section C of Rule: No. 3, notifies the City of any material change in the size, character, or extent of its equipment or operations the City will, within a reasonable time, advise the Customer of the resulting rate options. In the absence of the notification provided for in Section C of Rule No. 3 , the City assumes no responsibility for advising the Customer of lower optional rates under other existing Rate Schedules or optional provisions available as a result of the Customer's changes in equipment or operations. D. New or Revised Rates. If new or revised Rate Schedules are established, the City will, within a reasonable time, bring them to the attention of the Customers which may be affected. E. Change of Rate Schedule. 1. A change to another applicable Rate Schedule or optional provision will be made only when a Customer elects in writing to make such change. 2 . If a Customer so elects, the change to another Rate Schedule will be made provided: a. A change of Rate Schedule has not been made during the past twelve-month period; or b. The change of Rate Schedule is made to, or from, a new or revised Rate Schedule; or 12 - 1 Rule No. 12 : RATES AND OPTIONAL RATES (coaGn-ed) C. There has been a change in the Customer's equipment or operations for that s&rvice which, in the opinion of the City, justifies the change of Rate Schedule. 3 . The change of Rate Schedule will become effective for the billing period during which the Customer has requested such change. F. interconnection. 1. Unless otherwise stated in the Rate Schedule, The Rate Schedules of the City are applicable only for service supplied entirely by the City without interc4nnecti,on with any other source of electrical energy. 2 . Where necessary to meet minimum requirements during ' emergencies, a standby generator may be interconnected through a double-throw switch with the written approval of the Director of Light & Power. The standby generator switch may be either manually or automatically controlled. The switch arrangement shall be such that the generator will not energize the City's service wires under any circumstances. Ordinance No. 806 Effective 01/15/70 Ordinance No. 1030 Effective 06/15/95 12 - 2 CITY OF VERNON LIGHT & POWER DEPARTMENT RULES FOR ELECTRIC SERVICE Rule No. 13: TEMPORARY SERVICE A. Establishment of Temporary Service. If no undue hardship to existing Customers will result therefrom, the City will furnish TempoCrary Service under the following conditions: 1. The appli,can.t shall pay, in advance or otherwise as required by the City, the estimated cost of the facilities necessary for furnishing service and the installation thereof, plus the estimated cost of removal, less the estimated salvage value. 2 . The applicant shall establish credit in accordance with Rule No. 6 or make prepayment in accordance with Rule No. 7 . S. Change to Permanent Status. In no event will a Customer be classified as temporary for more than three years. Ordinance No. 806 Effective 1/15/70 Ordinance No. 1030 Effective 06/15/95 13 — I CITY OF VERNON LIGHT & POWER DEPARTMENT RULES FOR ELECTRIC SERVICE Rule No. 14: SHORTAGE OF SUPPLY AND INTERRUPTION OF DELIVERY A. Shortage and Interruption. The City does not guarantee a sufficient supply of electricity or freedom from interruption. The Caty will not be liable for interruption or shortage of supply, nor for any loss or damage occasioned thereby. B. Temporary Suspension for Repairs. Whenever the City finds it necessary to make repairs or improvements to its electric system, it, will have ttie right to suspend temporarily the delivery of electricity. In such cases reasonable notice. will be given to the Customers. To the extent practicable such repairs or improvements will be performed expeditiously and with as little inconvenience to the Customers as possible. whenever, in the operation of the City's electric system, interruptions in the delivery of electric energy to Customers results from or is occasioned by any other cause, notice of such interruption will not be given to the Customers. The City will exercise reasonable diligence to restore delivery of electric energy. C. - Apportionment of Supply During Time of Shortage. It a shortage of supply of electricity occurs, the City will apportion its available supply among its Customers as the City in its sole discretion shall determine. Resolution No. 4005 Effective 08/18/70 Ordinance No. 1030 Effective 06/15/95 14 — 1 CITY OF VERNON LIGHT & POWER DEPARTMENT RULES FOR ELECTRIC SERVICE Rule No. 15: LINE EXTENSIONS A. General. The City will construct, own, operate and maintain Distribution LInas only along public streets, roads and highways whichtthe City has the legal right to occupy, and on public lands Arid private property across which rights of way or easements satisfactory tv the City may be obtained without cost or condemnation by the City. Upon request by the City, the applicant shall provide such rights of way or easements. Line Extensions of standard Nominal Voltages of 16. 5 kV or less necessary to furnish permanent electric service to applicants will be made by the City in accordance with the provisions of this rule. This Rule does not apply to the extension of facilities of standard Nominal Voltage in excess of 16. 5 kV unless the City desires to extend such facilities for the City's Operating Necessity. H. Overhead Line Extensions. 1. Free Footage Allowances. Overhead Line Extensions will be made by the City at its own expense provided the length of line required does not exceed the free length as determined from the allowances given in Table 15--1. Table 15-1 For lighting load, per kW connected. . . . . . . . . . . . .125 feet For permanently installed cooking or heating load, per kW. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . .75 feet For air conditioning load per hp connected. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . .50 feet For motors of 1 hp or more, per hp connected. . . . .50 feet For street lighting requiring pole Line Extensions, per 1,000 lumens. . . . . . . . . . . . . . . . . . .25 feet 2 . Conditions. a. Length and Location of Line. The length of line required for a Line Extension will be considered as the distance along the shortest practical route, as determined by the City, from the City' s nearest permanent Distribution Line pole to the pole from which the service connection is to be installed. 15 - 1 Rule No. 15: LINE EXTENSIONS (co.w.d) b. Special Facilities. Under this rule the City will install only those fa&ilities which it deems necessary to render service in accordance with the Rate Schedules. Where the applicant requests facilities which are in addition to, or in substitution for, the standard facilities which the City normally would install, the extra cost thereof shall be paid in advance by the applicant. r 3 . £xtensions Beyond the Free Length. a. Overhead Line Extensions of greater length than the free extension, as specified in Table 15-1, will be made provided the applicant for service makes a nonrefundable payment to the City for the estimated line and installation costs in excess of the free length. Such Distribution Lines will be owned, operated and maintained * by the City: b. When more than one applicant is to be served from the same Line Extension, the total free length will be the sum of the free allowances for each applicant as specified in Table 15-1. The total payment required from the group of applicants will be apportioned among the members of the group in such manner as they may mutually agree. C. Underground Line Extensions. 1. General. Underground Line Extensions will be made only when mutually agreed upon by the City and the applicant, except in those areas where the City maintains or desires to maintain underground distribution facilities for the City's Operating Necessity or in compliance with applicable laws, ordinances, or similar requirements of public authorities. Underground Distribution Lines will be owned and maintained by the City. 2 . City-Installed Line Extensions. a. Normally underground Line Extensions will be installed by the City; provided that the applicant shall pay in advance a nonrefundable sum equal to the estimated cost of the underground Line Extension. b. Underground service facilities will be installed and maintained in accordance with Rule No. 16. 15 - 2 Rule No. 15: LINE EXTENSIONS {contuuul) 3 . Appplicant-Installed Line Extensions. a.. When mutually agreed upon by the City and the applicant, that portion of the. underground Line Extension consisting of the duct system (including conduits, ducts, manholes and vaults) may be installed by the applicant in accordance with the City's specifications. b. Upon acceptance by the City, applicant will transfer ownership of such duct system to the City. Applicant shall obtain necessary permits and specifications from the City prior to starting construction. C. Any additional underground distribution facilities necessary to complete the Line Extension will be installed by the City at applicant's expense. d. Underground service facilities will be installed and maintained as provided in Rule No. 16. 4. Renlacement of Overhead with Underaround Distribution Facilities. When mutually agreed upon by the City and a Customer or applicant, overhead distribution facilities may be replaced with underground distribution facilities, provided the Customer or applicant requesting the change pays, in advance, a nonrefundable sum equal to the estimated cost of such facilities. D. Special Conditions. 1. Temporary Service Line. Line Extensions for Temporary Service will not be made under this rule, but will be made in accordance with Rule No. 13 . 2 . Exceptional Cases. In unusual circumstances, when the application of these rules appears impractical or unjust to either party, or in the case of the extension of 66 kV facilities, the City or the applicant shall refer the matter to the City Council for special ruling or for the approval of special conditions which may be mutually agreed upon, prior to commencing construction. Ordinance No. 806 Effective 01/15/70 Resolution No. 1030 Effective 06/15/95 15 - 3 CITY OF VERNON LIGHT & POWER DEPARTMENT RULES FOR ELECTRIC SERVICE Rule No. 16: SERVICE CONNECTIONS AND FACILITIES ON CUSTOMER'S PREMISES A. Meter and Miscellaneous Service Equipment on Customer's Premises. 1. Meter Installations. a. Location. The Customer shall provide an approved location for the Meter or Meters and associated equipment on the Premises which at all times shall be accessible for inspection, reading and testing. The Customer shall, at its own expense, provide a new and approved location whenever the existing location becomes inaccessible for inspecting, reading or testing. b. Multiple-Occupancy premises. In multiple-occupancy Premises in which Meters are required to be installed for various floors, groups of rooms, or separate buildings in order to measure separately the electrical energy supplied to each of several Customers, all Meters and associated equipment shall be located at one central point unless otherwise specified by the City. Each Meter position shall be clearly marked by the building owner to indicate the particular location supplied by it. C. Master Meters. A master Meter and associated equipment will be furnished and installed by the City upon application by the owner or lessee of any multiple- occupancy Premises where electric energy is to be furnished and/or metered by said owner or lessee to the individual tenants as provided in Rule No. 18 . d. Sealing of Meters. All Meters will be sealed by the City, and no such seal shall be tampered with or broken except by an authorized representative of the City. 2 . Miscellaneous Service E ui ment. a. Equipment Furnished by Customer_ All service switches, fuses, Meter sockets, Meter and instrument transformer housings, switchboard Meter test busses and similar devices, regardless of voltage, required in connection 16 - 1 Rule NO. 16: SERVI^_E CONNECTIONS AND FACILITIES ON CUSTOMER'S PREMISES (Condooedl with service and Meter installation on Customer's Premises, shall be furnished, installed, and maintained by the Customer in accordance with the City's requirements. Detailed specifications will be furnished by the City upon request. b. Equipment Furnished by City. The City will furnish, own, and Install the necessary instrument transformers, test facilities (except switchboard meter test busses) , and Meters._ Also, the City will furnish, own, and install the enclosures when it deems it necessary to locate the Meters and associated equipment at a point that is not accessible to the Customer. B. Service Connections. 1. Line Extensions. If the City's Distribution Lines are not contiguous to the Customer's Premises, such lines may be extended in accordance with Rule No. 15 . 2 . Overhead Services from overhead Distrj�2ution Lines. a. service Drops. Upon application for service, and where the City's Distribution Line is located on the Customer's Premises, or on a street, highway, lane, alley, road, right of way, or easement immediately contiguous thereto, the City will, at its own expense, furnish and install a single span of overhead Service Wires from its Distribution Line to the Customer's first permanent support; provided that such support shall be of a type and so located that such Service Wires may be installed to a point approved by the City in accordance with good engineering practice and in compliance with all applicable laws, ordinances, rules and regulations, including those governing clearances and points of attachments. b. Impaired Clearance. Whenever any of the clearances required by the applicable laws, ordinances, rules, or regulations from the overhead Service Wires to the ground or any object become impaired by reason of any changes made by the owner or tenant of the Premises, the Customer shall, at its own expense, provide a new approved support, in a location approved by the City, for the termination of the City's overhead Service Wires and shall also provide all service entrance conductors and equipment necessitated by the change of location. 16 - 2 Rule No. 16: SERVICE CONNECTIONS AND FACILITIES ON CUSTOMER'S PREMISES (Coma...d) 3 . Underground Services from :Underground Distribution Lines. a. General. (1) rn areas where the City maintains underground Distribution Lines contiguous to the Customer's Premises, Service Wires will be underground, using • the shortest practicable route to the Customer's termination facilities, which shall be at a location satisfactory to the City. (2) Upon request by the City, the Customer shall provide without cost to the City the necessary rights of way or easements. (3) The Customer, at its expense, shall install, own and maintain a conduit system (junction boxes, manholes, conduits, ducts, enclosures and vaults) in which the City will install its underground Service Wires. The plans, specifications, and installation of such conduits system shall be subject to the approval of the City. (4) In case of unusual conditions on the Customer's Premises, the City and Customer may adjust these provisions by mutual agreement. b. New Underground Services from Underground Distribution Lines. The City will install underground Service Wires from its underground Distribution Lines to the Customer's termination facilities under the following conditions: (1) The Customer, at its expense, shall perform the necessary trenching, backfill, and paving on its Premises and shall furnish, install, own, and maintain the conduit system and termination facilities on said Premises. (2) The City will furnish, install, own, and maintain the underground Service wires to the Customer's termination facilities. If the length of such Service Wires is 100 feet or less, the City will pay the cost thereof. If the length of such service Wires is more than 100 feet, the Customer shall pay to the City the cost of the Service Wires exceeding 100 feet. 16 - 3 Rule No. 16: SERVICE CONNECTIONS AND FACILITIES ON CUSTOMER'S PREMISES (cootiaucd) c. Underground Installation Replacing Existing Overhead Distribution Lines. Where an existing overhead Distribution Line is replaced by an underground Distribution line, underground service will be supplied in the same manner and subject to the same conditions as above for new underground services. d. Replacement or Reinforcement of Existing Underground C. Services. If existing underground Service Wires require replacement or reinforcement due to added loads, the City will replace or reinforce them up to the Customer's termination facilities. (1) The Customer shall pay for any portion of such Service Wires in excess of 100 feet. (2) The Customer, at its expense, shall replace or reinforce its conduit system, if necessary. The plans, specifications and installation of such conduit system shall be subject to the approval of the City. 4 . Underground Services from Overhead Distribution Lanes. a. General. If a Customer desires and the City agrees, Service Wires may be installed underground in areas where the City maintains an overhead Distribution Line. Such underground Service Wires and other facilities will be installed under the same provisions as above for new underground services except that the City at its expense will provide and install riser material (conduit) on City-owned poles. b. New Underground Services from Overhead Distribution Lines. Where new underground services are connected to an existing overhead Distribution Line, underground service will be supplied in the same manner and subject to the same provisions as above for new underground services. C. Replacement or Reinforcement of Existing Underground Service Connections from Overhead Distribution Lines. If existing underground Service Wires require replacement or reinforcement due to added loads, the City will replace or reinforce them up to the Customer's termination facilities. 16 - 4 Rule No. 16: SERVICE CONNECTIONS AND FACILITIES ON CUSTOMER'S PREMISES (CoaGeuad) (1) The Customer shall pay for any portion of such Service Wires in excess of Zoo feet. (2) The Customer, at its expense, shall replace or reinforce its conduit system, if necessary. The plans, specifications and installation of such conduit system shall be subject to the approval of - the City. 41 C. Transformer Installations on Customer's Premises. 1. General . In cases where the City deems it necessary to install transformers on the Customer's Premises, the Customer shall furnish satisfactory rights of way and easements for such purposes, which shall provide adequate space for the transformer installation. If the Customer requests and the City agrees to locate transformers above the ground floor level in or on the Customer's building, the Customer shall, at its expense, provide and maintain permanent lifting equipment suitable for installing and removing the transformers. Rights of way and space provisions must be such that required clearances from adjacent structures can be maintained, and any vault, room, enclosure, or lifting equipment provided by the customer shall conform with all applicable laws of the State of California. The plans, specifications and installation thereof shall be subject to the approval of the City. 2 . Installations Over 1500 kVA. For installations over 1500 kVA, each installation shall be in accordance with the following: a. The City will not furnish a pole-type transformer structure for an installation over 1500 kVA. For an installation over 1500 kVA, a suitable fireproof vault, fire proof room, concrete pad, or foundation shall be provided by the Customer. b. Where a transformer bank and its switching equipment are to be located outdoors, the Customer shall provide and maintain, at its expense, a suitable concrete pad or foundation and enclosure as specified by the City. Where a transformer bank and its switching equipment are to be located indoors, the Customer shall provide and maintain a suitable fireproof vault or fireproof room, at its expense. The concrete pad, foundation, enclosure, vault, or room is subject to City approval before the installation will be made. Transformers will be installed in buildings only if there is no suitable 16 - 5 Rule No. 16: SERVICE CONNECTIONS AND FACILITIES ON CUSTOMER'S PREMISES ICominueo outdoor location. C. The City will own and install transformers, switching equipment, protective equipment, primary and secondary bus, and necessary grounding. The Customer shall furnish and install, at its expense, all secondary equipment and material necessary to receive service at the secondary of the 'transformer bank or the secondary bus, or as L otherwise specified by the City. 3. Installations of 1500 kVA or Less. For installations of 1500 kVA or less, each installation shall be in accordance with the following: a. If the City erects a pole-type transformer structure at its expense, service from this structure will be supplied as specified by the City. b. If the Customer provides a suitable concrete pad, foundation, enclosure, fireproof vault, or fireproof room at its _expense, the installation will be made in accordance with the provisions of 2 .b. and 2.c. hereof. 4 . Underground Services. If Service Wires are to be installed underground, installation of such Service Wires and the associated conduit system will be made in accordance with the provisions of B. 3 . or B.4 . , as applicable. D. Ownership and Maintenance of Facilities. All transformers, Meters, Service Wires, and other facilities installed by the City upon the Customer's Premises for the purpose of delivering electric energy to the Customer shall continue to be the property of the City, and may be repaired or replaced by the City at any time, may be removed at the termination of service, and may also be used to supply other Customers whether or not on the same Premises, provided the proper rights of way have been obtained. No rent or other charge whatsoever shall be made by the Customer against the City for placing or maintaining such facilities upon the Customer's Premises. The Customer shall exercise reasonable care to prevent the facilities of the City upon said Premises from being damaged or destroyed, and shall refrain from relocating or otherwise interfering with such facilities. In case any defect therein shall be discovered, the Customer shall promptly notify the City. 16 - 6 Rule No. 16: SERVICE CONNECTIONS AND FACILITIES ON CUSTOMER'S PREMISES (0D-6--ed) E. Customer Responsibility for Its Equipment. The Customer shall, at its sole risk and expense, furnish, install, inspect, and keep in good and safe condition all electrical wires, lines, machinery, and apparatus of any kind or character which may be required, including all necessary protective appliances and suitable enclosure therefore, (1) for receiving electric energy from the lines of the City, regardless of the location of the transformers, Dieters, or other equipment of the City and (2) for applying and utilizing such energy. The Customer shall also be solely responsible for the transmission and delivery of all electric energy over or through Customer's wires and equipment. The City shall not be responsible for any loss or damage occasioned or caused by the negligence, want of proper care or wrongful act of the Customer, any of its agents, employees, or licensees, or any third party installing, maintaining, using, operating, or interfering with any such wires, lines, machinery, or apparatus. F. Right of Access. The City shall, at all times, have the right of ingress to and egress from a Customer's Premises for any purposes reasonably connected +with the furnishing of electric energy and the exercise of any and all rights secured to it by law or these Rules. Resolution No. 4020 Effective 11/17/70 Ordinance No. 1030 Effective 06/15/95 16 — 7 CITY OF VERNON LIGHT & POWER DEPARTMENT RULES FOR EErECTRIC SERVICE Rule No. 17: METER TESTS AND ADJUSTMENT OF BILLS FOR METER ERROR A. Tests. 1. Prior to Installation. Every Meter will be tested at or prior to the time of installation, and no Meter will be placed in service if found to register more than 1% fast or 1% slow. 2 . On Customer Reguest. A Customer may, on notice of not less than one week, require the City to test the Meter for its service. A charge will be made for such a test, but, this amount will be waived if the Meter is found to register more Y than 2% fast or 2% slow. A Customer shall have the right to require the City to conduct the test in its presence or in the presence of its expert or other appointed representative. The results of the test will be furnished to the Customer within a reasonable time after completion of the test. B. Adjustment of Bills for Meter Error. I . Fast Meters. When, upon test, any Meter is found to be registering more than 20 fast, the City will refund to the Customer the amount of the overcharge based on corrected Meter readings for the preceding six months, subject to the provisions of paragraph 4 hereof. 2 . Slow Meters. When, upon test, any meter is found to be registering more than 20 slow, the City may bill the Customer for the amount of the undercharge based on corrected meter readings for the preceding six months, subject to the provisions of paragraph 4 hereof. 3 . Nonregistering Meters. When, upon test, any Meter is found to be nonregistering, the City may bill the Customer for the estimated amount of electricity consumed but not registered for a period of three months, subject to the provisions of paragraph 4 hereof. Bills for this purpose will be estimated from the Customer's prior use, the Customer's subsequent use correctly Metered, the City's experience with other Customers of the same class, and/or the general characteristics of the Customer's 17 - 1 Rule No. 17: METER TESTS AND ADJUSTMENT OF BILLS FOR METER ERROR cauwmcd) operations. Z. 4 . General. When it is found that the error in a Meter is due to causes the date of which can be reliably established, the overcharge or the undercharge will be computed back to but not beyond that date, provided, however, that in no case will a bill for undercharge on domestic service schedules be rendered for a pdriod exceeding three months. When a slow or (nonregistering Meter has been caused by an action of the Customer, its agents, employees, or licensees, the above time limitations shall not apply. C. Replacement of Meters. 1. Any Meter damaged or destroyed by the Customer, its agents, employees, clients, or visitors shall be replaced by the City at the Customer's expense. 2. Any defective Meter, other than the above, shall be replaced by the City at its expense. Resolution No. 606 Effective 01/15/70 Ordinance No. 1030 Effective 06/15/95 17 - 2 CITY OF VERNON LIGHT & POWER DEPARTMENT RULES FOR ELECTRIC SERVICE Rule No. 18: SUPPLY TO SEPARATE PREMISES AND USE BY OTHERS A. Separate Metering. Separate Premises will not be supplied through the same Meter, except as may be specifically provided for in thg applicable Rate Schedule. B. other Uses or Premises. Electricity received from the City shall not be- used by the Customer upon other Premises or for other purposes than those specified in its application or in the applicable Rate Schedule. C. Use by Others. A Customer shall not charge for electricity received from the City and used by another person, except: 1. If the charge to tenants is absorbed in the rental for the Premises or space occupied; or 2 . If the Customer is the owner, lessee, or operator of a multiple-occupancy Premises and provides submeters for the electricity used by tenants at the same rates that the City would charge for the service if supplied directly. In such cases, the Customer shall furnish, install, maintain and test the submeters. Resolution No. 4020 Effective 11/17/70 ordinance No. 1030 Effective 06/15/95 18 - 1 SUPPORTING DOCUMENTS AFFIDAVIT OF POSTING STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES) ss CITY OF VERNON ) I , Gloria J. Orosco, Chief Deputy City Clerk for the City of Vernon do hereby certify that I did, on the 18th day Of May, 1995, direct to be posted three (3 ) copies of: Ordinance No. 1030 of the City of Vernon One in each of the following places, to wit: at the northwest corner of 38th Street and Santa Fe Avenue; the northeast corner of Leonis Blvd. and Pacific Blvd; and on the bulletin board in the lobby of the City Hall of the City of Vernon located at 4305 Santa Fe Avenue, all in said City, there being no newspaper of general circulation printed and published in t' e City of Ve n . Date: 5/18/95 G oria J. D sco Chief Depu City Clerk State of California ) )ss County of Los Angeles ) Onu_ 1 9 S I Cl Q� before me, �a L• �crc.. F. ' (notary public) personally appeared Gloria rosco , (name of signatory) personally known to me (or known to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that she executed the same in her authorized capacity and that by her signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. WITNESS my hand and official seal: OFFICIAL SEAL :Atdvtpst.g SHARON L DUCKWOPTH Notary Pubec-Cahfcrnia LOS ANGELES COUNTY My CorrunlWon Expires June 9, 1995 RESOLUTION NO . A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON APPROVING AN AMENDED CITY OF VERNON UTILITIES DEPARTMENT RULES FOR ELECTRIC SERVICE WHEREAS, the City Council of the City of Vernon adopted Ordinance No. 1030 on May 16, 1995, providing that rates to be charged for electrical energy distributed and supplied by the City within its boundaries shall be set by resolution; and WHEREAS, by memorandum dated August 4 , 2015, the Director of the Gas & Electric Department has recommended the approval of an amended City of Vernon Utilities Department Rules for Electric Service amending Section H (2) of the Rules for Electric Service to state that effective August 4 , 2015, customers being served by the Customer- Financed Added Facilities shall pay a monthly charge of 0 . 33%- of the amount advanced, and customers being served by City-Financed Added Facilities shall pay a monthly charge of 1 . 0% of the additional cost associated with the Added Facilities; and WHEREAS, the City Council of the City of Vernon desires to approve amended City of Vernon Utilities Department Rules for Electric Service. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS: SECTION 1 : The City Council of the City of Vernon hereby finds and determines that the above recitals are true and correct . SECTION 2 : The City Council of the City of Vernon finds that this action is exempt from California Environmental Quality Act (CEQA) review because it is general policy and procedure making that will not result in direct or indirect physical changes in the environment, and therefore does not constitute a "project" as defined by CEQA Guidelines §15378 . SECTION 3 : The City Council of the City of Vernon hereby adopts the amended City of Vernon Utilities Department Rules for Electric Service, a copy of which is attached hereto as Exhibit A. SECTION 4 : The City Clerk, or Deputy City Clerk, of the City of Vernon shall certify to the passage, approval and adoption of this resolution, and the City Clerk, or Deputy City Clerk, of the City of Vernon shall cause this resolution and the City Clerk' s, or Deputy City Clerk' s, certification to be entered in the File of Resolutions of the Council of this City. APPROVED AND ADOPTED this 4th day of August, 2015 . Name : Title : Mayor / Mayor Pro-Tem ATTEST: City Clerk / Deputy City Clerk APPROVED AS TO FORM: Brian yun, Depu City Attorney - 2 STATE OF CALIFORNIA ) ss COUNTY OF LOS ANGELES ) I, City Clerk / Deputy City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. , was duly passed, approved and adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Tuesday, August 4 , 2015, and thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon. Executed this day of August, 2015, at Vernon, California. City Clerk / Deputy City Clerk (SEAL) - 3 - EXHIBIT A CITY OF VERNON UTILITIES DEPARTMENT RULES FOR ELECTRIC SERVICE Rule No. 2: DESCRIPTION OF SERVICE A. General. The following general rules shall apply to all services: 1. The character of service available at any particular location should be ascertained by inquiry at the City's office. 2. The Rate Schedules are applicable for service where the Customer purchases its entire electrical requirements from the City, except where such schedules specifically provide otherwise, and are not applicable where a part of the Customer's electrical requirements are supplied from some other source. 3. The Rate Schedules are applicable for service provided from overhead distribution facilities and underground distribution facilities in accordance with the provisions of Rules 15 and 16. 4. Alternating current service at a nominal frequency of 60 Hz will be supplied. 5. Voltages referred to in the Rate Schedules are Nominal Voltages. B. Phase and Voltage Specifications. The following phases and voltages are supplied by the City: 1. Standard Nominal Voltages. a. Standard Nominal Voltages for distribution are as follows: 1201208, 120/240, 240, 277/480, 4160, 7200 or 16500 volts. b. The standard Nominal Voltage for transmission is 66,000 volts. For the City's Operating Necessity, the City may elect to supply a Customer from lines of transmission voltage. In such case, the Customer may select as a standard delivery voltage one of the following: 4160, 7200, 16500 volts, or such other voltage as the City may approve, provided that in no case shall a Customer be required to advance to the City a greater amount of money to obtain service than it would be required to advance under the City's Rules applicable to the particular load, if that customer was served from the City's nearest Distribution Line ordinarily employed. C. Where the City maintains four-wire wye-connected polyphase secondary mains: 120/208 and 208 volts. d. Where the City maintains four-wire delta-connected polyphase secondary mains: 120/240 and 240 volts. 2. Single-phase Service- 2- 1 a. The general description of single-phase service provided by the City is given in Table 2-1. Table 2.1 _ Voltage Minimum Load Maximum Load Required Allowed 120/240 volts None 400 amp. Main i switch b. The maximum size 120 volt single-phase motor allowed is 1 hp and the maximum size 240 volt, or higher voltage, single-phase motor allowed is 10 hp. C. Single-phase service may be supplied to installations having a proposed main service switch in excess of the switch capacities specified above, in Table 2-1, provided the approval of the City has been first obtained as to the number and size of switches, circuits, and related facilities. 120/240 volt installations will be supplied by one of the following methods as determined by the City: (1) From two or three separate 120/240 volt service connections at one location. Energy so supplied will be totalized for billing purposes. The connected load on any service connection shall not be greater than twice that on any other service connection. (2) From one 120/240 volt connection where the proposed main service switch does not exceed 600 amperes capacity. d. Where the City maintains four-wire wye-connected 120/208 volt secondary mains, single-phase service is supplied at 120/208 volts, three-wire, for which the maximum allowed is a 100-ampere main switch. Loads in excess of a 100-ampere main switch will be supplied at 120/208 volts, three-phase, four-wire 3. Three-phase Service. a. The general description of three-phase service provided by the City is given in Table 2-2. Table 2.2 Minimum Maximum Maximum Main Connected Load Demand Switch Capacity Voltage Required Allowed Allowed 120/208 120/240 volts 3 kVA 1000 kVA 4000 amps. 277/480 volts 25 kVA 3000 kVA 4000 amps. 4160 volts Consult ON 12000 kVA 3000 amps. 7200 volts Consult City 30000 kVA Not specified 16500 volts Consult Citv 30000 kVA Not specified b. Domestic Service. In areas where the City does not maintain three-phase secondary mains, only single-phase service will be supplied unless the Customer's 2 -2 load includes at least one motor rated in excess of 10 hp. C. Where three-phase service is supplied from a four-wire wye-connected 1201208 volt service, the maximum demand allowed is 1,000 M. d. Service to all loads of 1,000 kVA maximum demand, or over, must be approved by the City as to adequacy of facilities for service. e. Loads on three-phase service must be balanced between phases in accordance with good engineering practice. f. Three-phase service may be supplied to installations having a proposed main service switch in excess of the switch capacities specified above, in Table 2-2, provided approval of the City has first been obtained as to the number and size of switches, circuits and related facilities. Such service will be supplied from two or three separate service connections at one location. Energy so supplied will be totalized for billing purposes. The loads will be balanced as closely as practicable between the services. 4. Combined Single-phase Service and Three-phase Service. a. Service may be supplied at 1201208 volts four-wire wye-connected where the City does not maintain four-wire secondary polyphase mains provided: (1)written application is made for such service by the Customer; (2)the Customer's load is of such a size as to require an individual transformer installation of not less than 15 kVA of transformer capacity; and (3)the Customer provides space acceptable to the City on its Premises to accommodate the installation of the City's facilities when, in the opinion of the City, such space is considered necessary. b. In underground areas where the City maintains 1201208 volt or 240 volt three-phase mains, service may be supplied at 277/480 volts, four-wire provided: (1)written application is made for such service by the Customer, and (2)the Customer provides space acceptable to the City on its Premises to accommodate the installation of the City's facilities when, in the opinion of the City, such space is considered necessary. C. Service may be supplied at 120/240 volts four-wire delta-connected where the City does not maintain four-wire secondary polyphase mains provided: (1)written application is made for such service by the Customer; (2)the Customer's load is of such a size as to require an individual transformer installation of not less than 15 kVA of transformer capacity; (3)the imbalance between phases is less than 100 kW; and(4)the Customer provides space acceptable to the City on its Premises to accommodate the installation of the City facilities when, in the opinion of the City, such space is considered necessary. d. The maximum demand allowances for combined single-phase and three-phase are set forth in B.3. above. 2-3 5. At the option of the City, the above voltage and phase specifications may be modified because of service conditions at the location involved. C. Motor Protection and Equipment. Customer's motor equipment must conform to the following requirements: 1. Motors that cannot be safely subjected to full rated voltage on starting or that drive machinery of such a nature that the machinery, itself, or the product it handles will not permit the motor to resume normal speed upon the restoration of normal supply voltage shall be equipped with devices that will disconnect them from the line upon failure of supply voltage and that will prevent the automatic reconnection of the motors upon restoration of normal supply voltage. 2. All motors of 1 hp or larger shall be equipped with thermal relays, fuses, or other automatic overcurrent interrupting devices to disconnect completely such motors from the line as a protection against damage due to overheating. 3. Three-phase motors driving elevators, hoists, tramways, cranes, conveyers, or other equipment, which would create hazard to life in the event of uncontrolled reversal of motor rotation, shall be provided with reverse-phase and open-phase protection to disconnect completely the motors from the line in the event of phase reversal or loss of one phase. D. Allowable Motor Starting Currents. The starting current drawn from the City lines shall be considered the nameplate locked rotor current or that guaranteed by the manufacturer. At its option the City may determine the starting current by test, using a stop ammeter with not more than 15% overswing or an oscillograph, disregarding the value shown for the first 10 cycles subsequent to energizing the motor. 1. If the starting current for a single motor exceeds the value stated in Tables 2-3 and 2-4, reduced voltage starting or other suitable means must be employed, at the Customer's expense, to limit the current to the value specified, except where specific exemptions are provided in Sections D.2, 3 and 4. Table 2.3 Alterna[in Current—Sin le—Phase Motors Rated Size Allowable Locked Rotor Currents 120 Volts 240 Volts 1 hp& less 50 amperes 36 amperes 1 '/2 h p nla 48 amperes 2 hp nla 60 amperes 3 ho nla 80 amperes 5 hp n1a 120 amperes 7 V2 h n/a 170 amperes 7'/2 h nla 170 amperes 2-4 Table 2-4 Alternating Current-Three-Phase Motors Allowable Locked Rotor Currents Rated Size 240 Volts 480 Volts 2400 Volts 3 hp 64 amperes 32 amperes n/a 5 hp 92 amperes 46 amperes n/a 7 V hp 127 amperes 63 amperes n/a 10 hp 162 amperes 81 amperes n/a _ 15 hp 232 amperes 116 amperes n/a 20 hp 290 amperes 145 amperes n/a 25 hp 365 amperes 183 amperes n/a 30 hp 435 amperes , 218 amperes n/a 40 hp 580 amperes 290 amperes n/a 50 hp 725 amperes 363 amperes 70 amperes 60 hp n/a 435 amperes 87 amperes 75 hp n/a 535 amperes 107 amperes 100 hp* n/a 725 amperes 142 amperes 'Over 100 hp-the City should be consulted for allowable locked rotor currents. 2 Where service conditions permit, subject to City approval, reduced-voltage starters may be omitted in the original installation until such time as the City may order the installation of a reduced-voltage starter to be made, and, similarly, the City may at any time require starting current values lower than set forth herein where conditions at any point on its system require such reduction to avoid interference with service. 3. A reduced-voltage starter may be omitted on any motor of a group installation provided that its starting current does not exceed the allowable starting current of the largest motor of the group. 4. A reduced-voltage starter may be omitted on any motor in a group installation provided that its starting current does not exceed three times the maximum demand in amperes of the entire installation. E. Interference With Service. 1 Customers who operate equipment which causes detrimental voltage fluctuations(such as, but not limited to, hoists, welders, radio transmitters, X-ray apparatus, elevator motors, compressors, and furnaces) must reasonably limit such fluctuations upon request by the City. The Customer will be required to pay for whatever corrective measures are necessary. 2 Prior to the installation of any new arc furnace or design modification of an existing furnace, the Customer shall provide basic design information for the installation to aid the City in determining a method of service and the allowable level of load fluctuations. 3. Any Customer who superimposes a current of any frequency upon any part of his electrical system, other than the current supplied by the City, shall, at his expense, prevent the 2- 5 transmission of such current beyond the Customer's electrical system. F. Power Factor. The City may require the Customer to provide, at its own expense, equipment to increase the operating power factor of each complete unit of neon, fluorescent, or other gaseous tube lighting equipment to not less than 90%, lagging or leading. G. Wave Form. The City may require that the wave form of current drawn by equipment of any kind be in conformity with good engineering practice. H. Added Facilities. 1. Where a Customer requests and the City agrees to install Added Facilities, the costs thereof shall be bome by the Customer. Such costs shall include continuing costs as may be applicable. Unless otherwise provided by the City Rate Schedules, these Added Facilities will be installed, owned and maintained or allocated by the City solely as an accommodation to the Customer. 2. Added Facilities will be installed under the terms and conditions of a contract in the form on file with the City of Vernon. Such contract will include, but is not limited to, the following terms and conditions: a. Where new facilities are to be installed for Customer's use as Added Facilities, the Customer shall advance to the City the additional installed cost of the Added Facilities over the cost of standard facilities. At the City's option, the City may finance the new facilities. b. Customers being served by the Customer-financed Added Facilities shall pay a monthly charge of G,9%0.33%of the amount advanced. C. Customers being served by City-financed Added Facilities shall pay a monthly j charge of 4—%1.0%of the additional cost associated with the Added Facilities. d_ Where existing facilities are allocated for the Customer's use as Added Facilities, the Customer shall pay a monthly charge for the Added Facilities of4.�1.0%of the estimated installed cost of that portion of the existing facilities which are allocated to the Customer. e Where the City determines the collection of continuing monthly charges is not practicable, the Customer will be required to make an equivalent one-time payment in lieu of the monthly charges. f. All monthly charges shall be reviewed and refiled with the City Council when changes occur in the City's costs for providing such service. Resolution No.4334 Effective 0512OU5 Resolution No. 1030 Effective 06/15/95 2 -6 r �rtV ` ..., RECEIVED REO IVEDJUL JUL 2 9 2015 iLY IWO CITY CLERKS OFFICE CITY AD�IIiVISTRAjIQ�:, STAFF REPORT VERNON GAS & ELECTRIC DEPARTMENT DATE: August 4, 2015 TO: Honorable Mayor and City Council ,L� 1 �/ FROM: Carlos Fandino Jr., Director of Vernon Gas & Electric Department Originator: Ali Nour, Utilities Engineering Manager RE: Request for Approval and Authorization of an Added Facilities Agreement (City Financed) By and Between the City of Vernon and Grand Packaging, Inc. Mimi Recommendation A. Find that the approval of an Added Facilities Agreement with Command Packaging is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines §15301(b), because this approval will merely lead to the possible construction of additional laterals and related meters to deliver electric service, and such construction is, at most, a negligible expansion of the existing facilities of the City's electric utility; and B. Approve the resolution to thereby permit the execution of an Added Facilities Agreement by and between the City of Vernon and Grand Packaging Inc. pursuant to Rule No. 2.H which provides long-term benefits for the Customer and the Department. Background The City of Vernon Rules for Electric Service "Description of Service" Rule No. 2, has a provision identified as section H, Added Facilities. Where a customer requests and the City agrees to install Added Facilities, the costs thereof shall be borne by the customer. Such costs shall include continuing costs as may be applicable. Unless otherwise provided by the City Rate Schedules, these Added Facilities will be installed, owned and maintained or allocated by the City solely as an accommodation to the Customer. Added Facilities are defined in City's Rule 2.11 as those which are in addition to, or in substitution for the standard Facilities City would normally install to serve Customer. A Customer has options to either request Customer-financed Added Facilities or City-financed Added Facilities. Page 1 of 2 Customers being served by the Customer-financed Added Facilities shall pay a monthly charge of 0.33% of the amount advanced. Customers being served by City-financed Added Facilities shall pay a monthly charge of 1.0% of the additional cost associated with the Added Facilities. The monthly charges include maintenance and replacement of the facilities allocated for the customer's use. Grand Packaging, Inc. is installing a new electric service to expand its operations in Vernon. The Customer has asked the City to install additional facilities to accommodate metering the new service along with one other existing service at one point of delivery. The estimated total cost of the said Added Facilities and the existing Added Facilities is set in Exhibit `B" of the attached Agreement. With the use of primary metering the services, the customer receives a 4% discount on its monthly electric bill; however, the primary meter will register to an additional estimated 2% transformer loss which it would not have if served using standard facilities, resulting in a net 2% discount on the customer's monthly invoice. In addition, the Customer pays $1,720 per month for the added facilities charges in perpetuity. The net result is approximately 1% discount on Customer's monthly bill compared to standard services. Fiscal Impact The fiscal impact to City's gross revenue by serving the Customer via primary metering as opposed to standard services is estimated at $25,200. Attachment(s) None. Page 2 of 2 RESOLUTION NO . A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON APPROVING AND AUTHORIZING THE EXECUTION OF AN ADDED FACILITIES AGREEMENT BY AND BETWEEN THE CITY OF VERNON AND GRAND PACKAGING INC. WHEREAS, Grand Packaging, Inc . ("Grand Packaging" ) operates a manufacturing plant in the City of Vernon that manufactures and distributes carry bags for retailers, the food-service industry, and restaurants in the United States; and WHEREAS, Grand Packaging currently receives electric service through several points of delivery and has requested to add one additional electric service consolidating the monthly usages of the new service with another main service into a single point of delivery metered at 16KV (the "Added Facilities" ) ; and WHEREAS, by memorandum dated August 4 , 2015 , the Director of Gas & Electric has recommended that the City enter into an agreement with Grand Packaging setting forth the terms and conditions under which the City will design, engineer, procure, construct, install, own, operate and maintain the Added Facilities, subject to the appropriate costs being paid by Grand Packaging; and WHEREAS, the City Council of the City of Vernon desires to approve the Added Facilities Agreement with Grand Packaging. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS : SECTION 1 : The City Council of the City of Vernon hereby finds and determines that the above recitals are true and correct . SECTION 2 : The City Council of the City of Vernon finds that this action is exempt under the California Environmental Quality Act (CEQA) , in accordance with Section 15301 (b) , because this approval will merely lead to the possible construction of additional laterals and related meters to deliver electric service, and such construction is, at most, a negligible expansion of the existing facilities of the City' s electric utility. SECTION 3 : The City Council of the City of Vernon hereby approves the Added Facilities Agreement with Grand Packaging, Inc . , in substantially the same form as the copy which is attached hereto as Exhibit A. SECTION 4 : The City Council of the City of Vernon hereby authorizes the Mayor or Mayor Pro-Tem to execute said Agreement for, and on behalf of, the City of Vernon and the City Clerk, or Deputy City Clerk, is hereby authorized to attest thereto. SECTION 5 : The City Council of the City of Vernon hereby instructs the City Administrator, or his designee, to take whatever actions are deemed necessary or desirable for the purpose of implementing and carrying out the purposes of this Resolution and the transactions herein approved or authorized, including but not limited to, any non-substantive changes to the Agreement attached herein. SECTION 6 : The City Council of the City of Vernon hereby directs the City Clerk, or the Deputy City Clerk, to send a fully executed Agreement to Grand Packaging. 2 SECTION 7 : The City Clerk, or Deputy City Clerk, of the City of Vernon shall certify to the passage, approval and adoption of this resolution, and the City Clerk, or Deputy City Clerk, of the City of Vernon shall cause this resolution and the City Clerk' s, or Deputy City Clerk' s, certification to be entered in the File of Resolutions of the Council of this City. APPROVED AND ADOPTED this 4th day of August, 2015 . Name : Title: Mayor / Mayor Pro-Tem ATTEST: City Clerk / Deputy City Clerk APPROVED AS TO FORM: Briar, Syun, Deputy rr ity Attorney - 3 - STATE OF CALIFORNIA } ) ss COUNTY OF LOS ANGELES ) I, City Clerk / Deputy City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. _ , was duly passed, approved and adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Tuesday, August 4, 2015, and thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon. Executed this day of August, 2015, at Vernon, California. City Clerk / Deputy City Clerk (SEAL) - 4 - EXHIBIT A THE CITY OF VERNON ADDED FACILITIES AGREEMENT (CITY FINANCED) 1. PARTIES: The Parties to this Added Facilities Agreement ("Agreement") are Grand Packaging,Inc.,a California corporation("Customer")and the City of Vernon,a California municipal corporation ("City"), hereinafter referred to individually as "Party" and collectively as "Parties." _ RECITALS: 2.1 Customer's property is located at 3840 E. 26t' Street, Vernon, California(the"Property"). Customer manufactures and distributes carry bags for retailers, the food-service industry, and restaurants in the United States. 2.2 Customer currently receives electric services through several points of delivery and has requested to add one additional electric service. Customer wishes to consolidate the monthly usages of the new service with another main service into a single point of delivery metered at 16KV. Both services will be served from the same primary 16KV wireline entering the western portion of the Property. 2.3 Parties agree that City shall provide the design, engineering, procurement, construction, installation, ownership, and maintenance of the electric facilities described in Exhibit A, and hereinafter referred to as "Added Facilities," the cost of which shall be borne by the Customer and which will be located at the service address as shown in Exhibit A. Added Facilities consist of two 2,500 KVA, 16KV pad-mounted transformers, primary metering equipment, poles, wires, cables and material for the benefit of the Customer in the location and on the terms and conditions set forth in this Agreement. 3. AGREEMENT: Parties agree to the terms and conditions set forth herein, including Exhibits A through C, referenced in Section 2.1, attached hereto and incorporated herein. 4. EFFECTIVE DATE AND TERM: 4.I This Agreement shall be effective and binding upon execution by the Parties and upon approval by the City Council of the City of Vernon. Subject to Customer's fulfillment of the conditions precedent set forth in section 19 below, City will use its best efforts to have the Added Facilities installed and operational such that electric service under the Agreement may begin by August 17, 2015. 4.2 This Agreement shall continue in effect until Customer gives notice of termination of service in accordance with Vernon's Rules for Electric Service (as amended,the "Electric Service Rules"), or this Agreement is terminated by City due to an Event of Default by Customer; provided, however, that if this Agreement is terminated, all unpaid Added Facilities Monthly Charges due through the date of termination, and the Termination Fee, as described in Appendix 1 of Exhibit B, must be paid in full prior to the effective date of termination of this Agreement. No election to terminate this Agreement shall be effective unless and until such costs, including the Termination Fee, as described in Exhibit B, are paid in full. 5. DEFINITIONS: The following terms,when used herein with initial capitalization,whether in the singular or the plural, shall have the following meanings: 5.1 Added Facilities: The facilities to be constructed as specified in Exhibit A attached hereto and incorporated herein by reference,which are being allocated for the Customer's use and benefit as Added Facilities as well as replacements or betterments associated therewith. 5.2 Added Facilities Installation Cost: All costs associated with the design, engineering, procurement, construction and installation of the Added Facilities. 5.3 Added Facilities Monthly Rate: The Added Facilities Monthly Rate pursuant to Exhibit B. 5.4 Agreement and Amendments: This Agreement, including all attachments and exhibits hereto, as may be amended from time to time. Modifications and amendments to this Agreement shall be valid and enforceable only if in writing and signed by the Parties. In the event the final cost of the Added Facilities exceeds or is below the estimated value outlined in Exhibit B, the Added Facilities Installation Cost will reflect such a change in capital cost; unless such cost exceeds 20% of the estimate, in which case the Added Facilities Installation Cost may only increase by 20%. 5.5 Added Facilities Monthly Charge- The charge to Customer for Added Facilities that is payable monthly to City as outlined in Exhibit B. The Added Facilities Monthly Charge recovers the Added Facilities Installation Cost, replacement cost, and operations and maintenance cost. 5.6 Services: The design, engineering, procurement, construction, installation, ownership, operation and maintenance of the Added Facilities. 6. ADDED FACILITIES: 6.1 City shall design, engineer, procure, construct, install, own, operate, and maintain the Added Facilities. Subject to Customer's fulfillment of the conditions precedent set forth in section 19 below, City will use its best efforts to install the Added Facilities so that they are fully operational by August 17, 2015, at which time, the charges outlined in Exhibit B will commence. Added Facilities shall at all times remain the property of City. 6.2 City shall commence performance of the design and construction of the Added Facilities upon full execution of this Agreement and Customer's fulfillment of all conditions precedent set forth in section 19 below.Vernon shall complete the installation of the Added Facilities per Project Schedule, Exhibit C, after the effective date of this Agreement. However, City shall not be liable for any cost or damage incurred by Customer because of any delay in the completion of the installation of any Added Facilities. Should the Added Facilities not be completed by August 17, 2015, the charges outlined in Exhibit B shall be abated until such time as the Added Facilities are installed and operational. 2 6.3 City shall construct and maintain the Added Facilities diligently and pursuant to all applicable federal, state and local safety codes, regulations, and laws, including but not limited to the requirements of California's General Orders No. 95, 128 and 165. Additionally, and included in the Added Facilities Installation Cost outlined in Exhibit B, Customer shall have the exclusive right of use of the Added Facilities; provided, however, that if City,at its sole cost and expense,makes any improvements or additions to the Added Facilities beyond the scope of the Customer's plans and specifications as described in Exhibit A, then Customer's use of the Added Facilities shall be non-exclusive; provided, however, that City shall in all events be required to provide to the Customer the fall use of the Added Facilities as originally constructed pursuant to the Customer's plans and specifications. Such improvements shall be reasonably coordinated with Customer prior to any such improvements made in order to avoid interruption of Customer's operations. 7. CHARGES: 7.1 Customer shall pay to City the charges outlined in Exhibit B as payment for all costs incurred by City for designing, engineering, procuring, constructing, installing, owning, operating, and maintaining the Added Facilities. If at any time Customer requests upgrades to the Added Facilities for Customer's convenience, City shall determine if such upgrades are feasible. If such upgrades are made at Customer's request for Customer's convenience and benefit, the costs shall be paid by Customer at the times and on the basis as agreed to by the Parties at the time. 8. MODIFICATIONS OR REPLACEMENT OF ADDED FACILITIES: Whenever Added Facilities are repaired or replaced due to damage or equipment failure, the work shall be completed at City's sole expense in accordance with good utility practice, unless the damage or equipment failure is caused by or due to action or inaction by the Customer, in which case the Customer shall be solely responsible for the entire cost of repair or replacement. Where an upgrade of Added Facilities is required for City's convenience or necessity, no increase shall be made in the investment amount for Added Facilities or the Added Facilities Installation Cost. City shall be responsible for all routine maintenance and repairs required to maintain the Added Facilities in good operating condition and shall make those capital expenditures (including capital repairs and replacements, as necessary) required to maintain the Added Facilities. 9. RIGHT-OF-WAY: Customer hereby grants to City the right of ingress to and egress from Customer's Property as determined by City in its sole discretion for any purpose connected with the construction, operation, and maintenance of the Added Facilities. Customer agrees to provide right-of-way or easements of sufficient space to provide legal clearance from all structures now or hereafter erected on Customer's Property for any facilities of City. Customer will promptly execute a recordable document evidencing the above described right of ingress and egress and right-of-way or easement, with the recordation costs to be borne by City. 10. BILLING AND PAYMENT: 10.1 City shall prepare and deliver monthly bills to Customer for the Added Facilities Monthly Charge. 10.2 The Customer shall pay City the charges outlined in Exhibit B concurrently with its electric service bills. Late charges will be applied pursuant to the City's Electric Service Rules. NOTICES: Except as otherwise provided in this Agreement, any notice, demand, or request provided for in this Agreement, or served, given, or made in connection with the Agreement, shall be in writing and shall be deemed properly served, given, or made if delivered in person, or sent by United States Mail, postage prepaid, or sent by reputable overnight delivery service, to the address specified below: Company: Grand Packaging, Inc. 3840 E. 26TH Street Attn: Albert Halimi Telephone- 323-446-3302 Email: ahalimi@commandpackaging.com Vernon: City of Vernon Vernon Gas & Electric Department Attn: Carlos Fandino, Director 4305 Santa Fe Avenue Vernon, CA 90058 Copy to: Vernon City Attorney's Office Attn: Hema Patel, City Attorney 4305 Santa Fe Avenue Vernon, CA 90058 Either Party may at any time, by notice to the other Party, change the designation or address of the person so specified as the one to receive notices pursuant to this Agreement. Notices are deemed given and received on the date of delivery or attempted delivery, if delivery is not accepted. 11. FORCE MAJEURE: Neither Party shall be considered to be in default in the performance of any of its obligations under this Agreement (other than obligations to make payments pursuant to this Agreement) when failure of performance shall be due to uncontrollable forces. The term "uncontrollable forces" means any cause beyond the control of the Party failing to perform, including, but not restricted to, failure of facilities, flood, earthquake, storm, lightning, fire, epidemic, war, riot, terrorism, civil disturbance or disobedience, labor dispute, labor or material shortage, sabotage, restraint by court order or public authority, and action or non-action by, or inability to obtain the necessary authorizations or approvals from, any governmental agency or authority which by exercise of due diligence such Party could not reasonably have been expected to avoid and which by exercise of due diligence it has not overcome. Either Party rendered unable to fulfill any of its obligations under this Agreement by reason of an uncontrollable force shall give prompt written notice of such fact to the other Party and shall exercise due diligence to 4 remove such liability. Nothing contained herein shall be construed to require a Party to settle any strike or labor dispute in which it may be involved. 12. INDEMNIFICATION AND LIMITATIONS ON LIABILITY: 12.1 Except to the extent of Vernon Gas & Electric's gross negligence or willful misconduct, Customer agrees to indemnify, defend, and hold harmless City of and from any and all claims,causes of action,damages and judgments arising out of any act or omission of City, and its respective officers, directors, employees and agents that may have caused injury or damage to any person, or to the equipment, fixtures, goods, products, or other property of the Customer, the Customer's employees, contractors, invitees, customers, or any other person in or about the Property,regardless of cause or whether or not such injury or damage results from conditions arising from Services provided by City hereunder or the installation, operation or maintenance of the Added Facilities or any failure of the Added Facilities to deliver electrical power or any defect in the Added Facilities, or explosion, fire, or steam released from the Added Facilities. 12.2 Notwithstanding either Party's negligence or breach of this Agreement, under no circumstances shall either Party be liable to the other Party for indirect, special, or consequential loss, damage, claim, cost, charge, or expense including, but not limited to, loss of business or any loss of income or profit therefrom, loss of use of a Party's facilities, loss of revenue, cost of replacement power or water, and claims of any third party, including any customer of the other Party. 13. ENTIRE AGREEMENT: This Agreement, including Exhibits A-C, constitutes the complete and final expression of the agreement between the Parties and is intended as a complete and exclusive statement of the terms of their agreement which supersedes all prior and contemporaneous offers, promises, representations, negotiations, discussions, communications, and other agreements which may have been made in connection with the subject matter of this Agreement. 14. RELATIONSHIP OF PARTIES: The covenants, obligations, and liabilities of the Parties are intended to be several and not joint or collective, and nothing contained in this Agreement shall ever be construed to create an association, joint venture, trust or partnership, or to impose a trust or partnership covenant, obligation, or liability on or with regard to either Party. Each Party shall be individually responsible for its own covenants, obligations, and liabilities as provided in this Agreement. Neither Party shall be under the control of the other Party. Neither Party shall be the agent of or have a right or power to bind the other Party without such other Party's express written consent. 15. NO THIRD-PARTY RIGHTS: The parties do not intend to create rights in, or to grant remedies to, any third Party as a beneficiary either of this Agreement or of any duty, covenant, obligation, or undertaking established herein. 16. ARBITRATION: The Parties agree that any and all disputes arising out of or in relation to this Agreement, including without limitation any action in tort, shall be resolved exclusively, finally and conclusively by arbitration in Los Angeles County, California 5 under the auspices of and pursuant to the rules of the Judicial Arbitration & Mediation Services, Inc. (JAMS). Each Party will select an arbitrator. Those two arbitrators will then select a third. The three member panel will make the final decision. All decisions of the arbitrators shall be in writing, and the arbitrators shall provide written reasons for their decision. The arbitration decision shall be final, unappealable and binding on the parties. Notwithstanding the foregoing, the Parties shall be permitted to access the court system to enforce any arbitration award or to obtain injunctive relief The exclusive jurisdiction and venue for any such action shall be the Superior Court of California, Los Angeles County. 17. ATTORNEYS' FEES: If either Party institutes an action or legal proceeding arising out of or related to this Agreement or the relationship of the Parties or their rights or duties in connection with the matters set forth in this Agreement,whether sounding in tort, contract, or otherwise, the prevailing Party in such action or proceeding shall be entitled to recover from the other party all costs and expenses, including all costs and reasonable attorneys' fees, in addition to any other remedy awarded by the arbitration panel. 18. INSURANCE: The Customer shall, for the duration of this Agreement, obtain and maintain at its own expense,premises liability coverage with a minimum combined single limit of$1,000,000 per occurrence and provide City with proof of insurance providing and maintaining the coverages and endorsements set forth herein. Said proof of insurance shall also provide that said policy or policies shall not be canceled or materially reduced in coverage without giving at least thirty (30) days prior written notice to the City. The insurance coverage as listed herein, shall be properly endorsed to include those contractual obligations which may be identified further within this Agreement and shall be endorsed to provide City all the rights and privileges of an additional insured. Customer shall cause its insurers to issue, including but not limited to, Certificates of Insurance or,upon request, certified copies of the insurance policies evidencing that the coverages and policy endorsements required under this Agreement, are maintained in force. 19. CONDITIONS PRECEDENT: City's obligations under this Agreement are subject to the following conditions: 19.1 By its execution of this Agreement, Customer agrees to pay all costs incurred by City for the design and construction of the Facilities according to the terms of this Agreement. If Customer terminates this Agreement in writing during the design and construction process, Customer shall be obligated to reimburse City for all costs incurred and committed to date, including, without limitation, costs of design and construction and demolition and removal, which costs shall include costs of employees of Vernon and costs paid to or owed to third party vendors. 19.2 Prior to the date on which City provides electrical service, Customer shall have obtained and paid for all necessary local and state licenses and permits for operation of its business including Vernon building, electrical and mechanical permits, health permit, certificate of occupancy, business license, etc. 19.3 City shall not provide electrical service under this Agreement until Customer has notified City in writing of its date of commencing operations,which shall not occur prior to the 6 date on which Customer has obtained all of the licenses and permits described in Section 19.2 above. 20. EVENTS OF DEFAULT: Any default described herein that is not cured by the Customer within ten(10) days of delivery of notice of default shall constitute an "Event of Default"; provided, however, that such default shall not constitute an Event of Default if Customer commences to cure the default within such ten(10) day period and diligently prosecutes the cure to completion. City shall have the right, at its option, to terminate this Agreement and to demand payment as described herein upon the occurrence of an "Event of Default." Upon demand by City following an Event of Default, Customer shall immediately pay all accrued and unpaid amounts of the Monthly Charges as of the date of termination and the Termination Fee, as described in Appendix 1 to Exhibit B, calculated as of the date of termination. Customer shall be given ten(10) days written notice of any Event of Default with a request that Customer cure said default. The termination of the obligations of City will not terminate the obligation of Customer until Customer has repaid City for any costs incurred pursuant to this Agreement. Each of the following shall constitute an Event of Default: 20.1 Customer relocates outside Vernon prior to the date on which the Added Facilities Installation Cost has been paid in full. 20.2 Customer breaches or defaults under any term, condition, provision, representation, or warranty in this Agreement, if that breach or default shall continue for ten(10) days after notice of the breach or default to Customer from Vernon Gas & Electric. 20.3 Occurrence of any of the following: (1)the making of any general arrangement or assignment for the benefit of creditors; (ii) becoming a "debtor" as defined in 11 U.S.C. §101 or any successor statute thereto (unless, in the case of an involuntary petition filed against Customer, the same is dismissed within 60 days); (iii) the appointment of a trustee or receiver to take possession of substantially all of Customer's assets located at the Property, where possession is not restored to Customer within 30 days; or (iv)the attachment, execution or other judicial seizure of substantially all of Customer's assets located at the Property, where such seizure is not discharged within 30 days; provided, however, in the event that any provision of this subparagraph is contrary to any applicable law, such provision shall be of no force or effect, and not affect the validity of the remaining provisions. 21. ASSIGNMENT: This Agreement shall bind and inure to the benefit of the Parties and their respective successors and assigns; provided however,that Customer shall not assign this Agreement or any of its rights, duties, or obligations without the prior written consent of Vernon Gas & Electric, which consent shall not be unreasonably withheld. 22. NO WAIVER: No delay or omission to exercise any right, power or remedy accruing to a Party on any breach or default of the other Party under this Agreement shall impair any such right, power, or remedy, nor shall it be construed to be a waiver of any such breach or default, or any acquiescence in such breach or default occurring later; nor shall any waiver of any single breach or default be considered a waiver of any other prior or 7 subsequent breach or default. Any waiver,permit, consent, or approval of any kind by a parry of any breach or default under this Agreement, or any waiver of any provisions or condition of this Agreement, must be in writing and shall be effective only to the extent specifically set forth in that writing. 23. REMEDIES: All remedies, either under this Agreement or by law or otherwise afforded to a Party, shall be cumulative and not alternative. 24. HEADINGS NOT BINDING: The use of headings in this Agreement is only for ease of reference, shall have no legal effect and are not to be considered part or a term of this Agreement. 25. SEVERABILITY: If any portion of this Agreement shall be held by a court of competent jurisdiction to be invalid, void or otherwise unenforceable, the remaining provisions shall remain enforceable to the fullest extent permitted by law. Furthermore,to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of this Agreement containing any provision held to be invalid, void, or otherwise unenforceable that is not itself invalid,void, or enforceable)shall be construed so as to give effect to the intent manifested by the provision held invalid, void, or unenforceable. 26. GOVERNING LAW: This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of California,without regard to its conflict of laws rules. 27. COUNTERPARTS: This Agreement may be executed in counterparts,each of which shall be deemed to be an original, but all of which, taken together, shall constitute one and the same agreement. 28. In the event of a conflict between this Agreement and any other rules or agreements issued by the City of Vernon governing the Added Facilities, this Agreement shall control. 8 29. SIGNATURE CLAUSE: The signatories hereto represent that they have been appropriately authorized to enter into this Agreement on behalf of the Party for whom they sign. This Agreement is hereby executed as of CUSTOMER By: Name: Title: By: Name: Title: THE CITY OF VERNON B� y W. Michael McCormick, Mayor ATTEST: Maria E. Ayala, City Clerk APPROVED AS TO FORM: Brian W. Byun, Deputy City Attorney 9 EXHIBIT A ADDED FACILITIES PLANS AND SPECIFICATIONS Service Address: 3840 E. 26Tn Street Vernon, CA 90058 Facilities 3840 E.26TH Street, Vernon CA 90058 1 Total Added Facilities(1): I Investment a. New Facilities $127,000 _ b. Existing Facilities I $45,000 c. Calculated Replacement Cost $68,800 d. Total cost of Added Facilities $172,000 (1) Labor: $52,561 Equipment: $6,272 Material: $113,167 Total: $172,000 City's 1 6kV Circuit NEW POLE 3509VP M PRIMARY METER / 2500KVA EXISTING POLE 236EVP ov �` = 16KV 277/480V EXISTING POLE 1867VP 1 I � I Q ir re Z CL 2500KVA 16KV 2771480V 10 EXHIBIT B ADDED FACILITIES MONTHLY CHARGE Customer shall pay a monthly added facilities charge at the rate set below.The rate is based on a percentage of the Added Facilities Installation Cost. 1. Added Facilities Monthly Rate(1) 1.00% 2. Added Facilities Installation Cost(2) $172,000 3. Added Facilities Monthly Charge $1,720.00 (1) Pursuant to Rule 2.H (2) Pursuant to Exhibit A to this Agreement 11 APPENDIX 1 TO EXHIBIT B TERMINATION FEE If this Agreement is terminated by Customer for any reason, or by City due to an Event of Default by Customer, prior to full repayment of the Added Facilities Installation Cost, Customer shall pay City in full the Termination Fee calculated as set forth below: Added Facilities Installation Cost to be recovered at the time of termination: • Added Facilities Installation Cost less 0.667% of the Added Facilities Monthly Charges paid through the date of termination • Plus: Cost of Upgrades made at Customer's request for Customer's convenience (if any). • Plus: Demolition and Removal cost (if applicable). • PIus: Other documented costs actually incurred by City (such as insurance, taxes, cancellation fees, etc., if any), 12 EXHIBIT C PROJECT SCHEDULE City Council Approval: August 4, 2015 Construction Start Date: August 7, 2015 Construction Completion date: August 17, 2015 1� � r RECEIVED RECEIVED JUL 2 9 26i5 JUL 26 7 2015 CITY CLERIC'S OFFICE STAFF REPORT 11T1 AWINi TRATION VERNON GAS & ELECTRIC DEPARTMENT AA DATE: August 4, 2015 TO: Honorable Mayor and City Council FROM: Carlos Fandino Jr., Director of Vernon Gas & Electric Department Originator: Ali Nour, Utilities Engineering Manager RE: Establishment of a Rebate Program for Retail Ratepayers Connected to City's Gas Distribution System Pursuant to California Air Resources Board ("CARB") Requirements to Develop and Implement Emissions Reduction Measures Recommendation A. The City Council find that the approval of a CARB Rebate Program is exempt under the California Environmental Quality Act (CEQA) in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment; and B. Adopt a resolution approving, establishing and implementing a natural gas CARB Rebate Program to customers connected to City's gas distribution system. The Program will be funded through rate schedule, "G-CARB" covering the cost of greenhouse gas emission allowances associated with the "cap-and-trade" program initiated by the California Air Resources Board ("CARB"); and C. Find that the Natural Gas Rebate Program as attached to the resolution be approved with an effective date of September 1, 2015. Background The Global Warming Solution Act of 2006, also known as Assembly Bill ("AB") 32, requires that California Greenhouse Gas ("GHG") emissions in 2020 be at the same levels as that of the year 1990. California Air Resource Board ("CARB") was authorized by the statute to develop regulations to reach this goal, and the cap-and-trade program is one of several tools designed by CARB to do so. Under the terms of the CARB cap-and-trade program, an overall limit on GHG emissions from capped sectors is established and covered facilities subject to the cap are able to trade permits or allowances to emit GHGs up to the capped amount. Page 1 of 3 In 2012, CARB's cap-and-trade program compliance obligations only covered electric utilities. Starting January 2015, the scope of the cap-and-trade program has expanded such that natural gas suppliers, including the City's gas utility, are covered entities with a compliance obligation based on retail gas sales and transportation. Similar to the City's electric utility, the gas utility will receive free allowances from CARB annually at least until 2020. On March 17, 2015, the City Council approved Resolution No. 2015-12 approving, establishing and implementing a natural gas surcharge to fund participation in the (CARB) cap-and-trade allowance program, for gas distributed and supplied by the City within boundaries. CARB requires that proceeds from auction sales of any of City's freely allocated allowances must be used for the benefit of retail gas ratepayers and may not be volumetrically refunded. As such, it is staffs recommendation to implement a rebate program that rewards energy efficiency measures taken by connected natural gas customers is consistent with the goals of AB 32. The Rebate Program The Natural Gas Rebate Program is intended to encourage eligible customers to reduce gas consumption, and thereby reduce greenhouse gas emissions. This can be accomplished by upgrading to high efficiency equipment, but also by an operational change that requires some form of investment. The Program is open to any project or process change that can increase gas consumption efficiency. The Program will be administered through the City's Natural Gas Utility and the Utilities Customer Service Department. The City shall allocate revenues to a natural gas rebate program derived from the CA Greenhouse Gas Surcharge approved in Resolution 2015-12 date March 17, 2015. These revenues are from the sale of"freely allocated greenhouse gas allowances," less the reasonable cost to administer the program. Rebates shall be allocated in a fair and equitable manner, and consistent with Assembly Bill 32 such that funds can be rebated to eligible customers that verifiably reduce greenhouse gas emissions to the atmosphere. Funding for this gas rebate program is exclusively from greenhouse gas allowances sold at each of the California Air Resource Board (CARB) cap-and-trade auctions. However, allowances sold must be replaced to fulfill the City's allowance requirement. Accordingly, the cost of all allowances purchased is covered by City's gas customers through the CA Greenhouse Gas Surcharge on monthly natural gas billing statements effective April 1, 2015. The surcharge account balance is growing each month to reach a total of approximately $340,000 after the first 12 months. Administrative costs are expected to be 15 percent or less, which will include staff time to process applications and rebate evaluation, third-party technical verification when needed, and marketing of the program. The rebates cover energy efficiency measures including, but not limited to, pipe insulation, hot water heater tank insulation, boiler replacements, steam traps or any special project that the energy savings can be quantifiable, depending on funding availability, as fully described in the attached Natural Gas Rebate Program description. Page 2 of 3 Fiscal Impact The net fiscal impact of the cap and trade program to the City's gas utility, by design, will be zero. Revenue during the first year is estimated to be approximately $600,000. Of that amount, approximately half will be used to pay for purchased emission allowances, and half will be reserved for funding the Natural Gas Rebate Program. Some funds will also be used to cover administrative and overhead costs. Attachment(s) 1. Resolution No. 2015-12 and Supporting Documentation (for reference) Page 3 of 3 RESOLUTION NO. 2015- 12 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON TO APPROVE, ESTABLISH AND IMPLEMENT A NATURAL GAS SURCHARGE TO FUND PARTICIPATION IN THE CALIFORNIA AIR RESOURCES BOARD ("CARB") CAP-AND- TRADE ALLOWANCE PROGRAM, FOR GAS DISTRIBUTED AND SUPPLIED BY THE CITY WITHIN ITS BOUNDARIES WHEREAS, in connection with the operation of the Vernon natural gas system, the City owns, operates and maintains a gas distribution system, which includes not only mains and appurtenances but also meters, laterals and other connection infrastructure; and WHEREAS, the California Air Resources Board ("CARB") has been authorized by California Assembly Bill 32 (pAB 320 ) to develop regulations, including the Cap-and-Trade Program to reduce California's greenhouse gas ("GHG") emissions to 1990 levels by 2020; and ; and WHEREAS, under the terms of the CARB cap-and-trade program, an overall limit on GHG emissions from capped sectors of the state's economy was established and covered facilities subject to the cap are able to trade permits, or allowances, to emit GHGs up to the capped a amount; and WHEREAS, by memorandum dated March 17, 2015, the Director of Gas & Electric has recommended that the City Council approve, establish and implement a new natural gas rate schedule, Surcharge for Greenhouse Gas Emissions ("G-CARB") , " that will collect funds needed to cover the cost of greenhouse gas emission allowances associated with the "cap- and-trade" program created by CARE; and WHEREAS, the City Council of the City of Vernon desires to approve, establish and implement the new natural gas rate schedule, Surcharge for Greenhouse Gas Emissions ("G-CARB") , effective April 1, 2015; and WHEREAS, the City Council of the City of Vernon held a public hearing on March 17, 2015, to consider evidence to establish and implement a new natural gas rate schedule that will take effect on April 1, 2015 to collect funds needed to cover the cost of greenhouse gas emission allowances associated with the "cap-and-trade" program created by CARE; and 1 WHEREAS, the City Council of the City of Vernon has heard and considered all evidence, both written and oral, presented in consideration of the proposed rate schedule. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS: SECTION 1: The City Council of the City of Vernon hereby finds and determines that the above recitals are true and correct. SECTION 2: The City Council of the City of Vernon finds that this action is exempt under the California Environmental Quality Act (CEQA) , in accordance with Section 15061 (b) (3) , the general rule that CEQA only applies to projects that may have an effect on the environment. SECTION 3 : Effective April 1, 2015, the City Council of the City of Vernon hereby approves the Surcharge for Greenhouse Gas Emissions PIG--CARB") natural gas rate schedule, a copy of which is attached hereto as Exhibit A. f l f r / / rr / - 2 i SECTION 4 : The City Clerk, or Deputy City Clerk, of the City of Vernon shall certify to the passage, approval and adoption of this resolution, and the City Clerk, or Deputy City Clerk, of the City of Vernon shall cause this resolution and the City Clerk' s, or Deputy City Clerk' s, certification to be entered in the File of Resolutions of the Council of this City. APPROVED AND ADOPTED this 17th day of March, 2015 . Name: W. Michael McCormick Title: Mayor J - ATTEST: aria L . Aya1a City Clerk / APPROVED AS TO FORM: zaYr9h 44oussa, Deputy City Attory - 3 - STATE OF CALIFORNIA ) ) ss COUNTY OF LOS ANGELES ) I1 Maria E . Ayala, City Clerk / f the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. 2015-12, was duly passed, approved and adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Tuesday, March 17, 2015, and thereafter was duly signed by the Mayor or Mayor Pro--Tem of the City of Vernon. Executed this fe!!� day of March, 2015, at Vernon, California. Maria E . Ayala City Clerk / neputy (SEAL) - 4 - E�1� A CITY OF VERNON NATURAL GAS DEPARTMENT Schedule G-CARB SURCHARGE FOR GREENHOUSE GAS EMISSIONS PURPOSE This surcharge is to cover costs associated with the cap-and-trade program implemented by the California Air Resources Board(CARB) for natural gas utilities in California beginning in the year 2015. This program is a result of Assembly Bill 32,"The California Global Warming Solutions Act of 2006." The purpose of the statewide cap-and-trade program is to reduce greenhouse gas emissions. APPLICABILITY This schedule applies to all City of Vernon gas utility customers,except any customer with greenhouse gas emissions large enough to require them to participate independently in the CARB cap-and-trade program. DETERMINATION OF SURCHARGE The surcharge shall be determined based on the formula shown below. CA Greenhouse Gas Surcharge Cost of Greenhouse Gas Emission Allowances Purchased Total Therms Transported The Cost of Greenhouse Gas Emission Allowances Purchased will vary during each year. A representative average cost may be used for the purpose of setting the surcharge. Total Therms Transported are Therms transported to Vernon customers that are either purchased commodity service or transportation-only service. Total Therms Transported shall not include Therms delivered to Vernon customers participating independently in the CARB cap-and-trade program. Cap-and-trade auction proceeds and limited use holding account emission allowance value shall be used for the benefit of retail ratepayers consistent with the goals of Assembly Bill 32. Accordingly,the volumetric surcharge shall not be reduced by the value of auction proceeds or by the value of limited use holding account emission allowances. Page I of 2 City of Vernon Council Resolution 2015-XX effective April 1,2015 A Surcharge Fund Balancing Account shall be established to track all revenue and expenditures associated the Vernon's participation in the cap-and-trade program. The ' Surcharge Fund Balance Account may be positive or negative. True up of the Fund Balance shall be achieved by adjusting the surcharge slightly from time to time, and shall be done in a manner that avoids spikes in the surcharge. Page 2 of 2 City of Vernon Council Resolution 2015-XX effective April I,2015 TRANSMITTAL COMMUNICATION CITY CLERK' S OFFICE INTEROFFICE N MORANDUM DATE: March 19,2015 TO: Carlos Fandino,Director of Gas&Electric William Fox, Finance Director/City Treasurer FROM: Deborah Juarez,Records Management Assistant RE: Resolution No. 2015-12—A Resolution of the City Council of the City of Vernon to Approve,Establish and Implement a Natural Gas Surcharge to Fund Participation in the California Air Resources Board C'CARB')Cap-And-Trade Allowance Program, for Gas Distributed and Supplied by the City within its Boundaries Transmitted herewith is a copy of Resolution No. 2015-12 referenced above,which was approved by City Council on March 17, 2015. Thank you. Attachment c: Anthony Serrano Resolution No. 2015-12 STAFF REPURT RECEIVED � �C11C� MAR 10 2015 STAFF REPORT CITY ADMINISTRATION VERNON GAS & ELECTRIC DEPARTMENT DATE: March 17,2015 TO: Honorable Mayor and City Council FROM: Carlos R. Fandino,Jr.,Director of Vernon Cas & Fleetrk! RE: Establishment of Natural Gas Surcharge to Fund Participation in the California Air Resources Board ("CARB") Cap-and-Trade Allowance Program,for Gas distributed and supplied by the City within its boundaries Recommendation It is recommended that: 1. The City Council find that the approval requested in this staff report is exempt under the California Environmental Quality Act (CEQA) in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment;and 2. The City Council conduct a public hearing and adopt a resolution approving, establishing and implementing a new natural gas rate schedule, °`G-CARB," that will collect funds needed to cover the cost of greenhouse gas emission allowances associated with the"cap- and-trade"program created by the California Air Resources Board("CARB"); and 3. The City Council find that the cost adjustment tariff as attached to the resolution be approved with an effective date of April 1, 2015. Background The Global Warming Solution Act of 2006, also known as Assembly Bill ("AB") 32, requires that California Greenhouse Gas ("GHG") emissions in 2020 be at the same levels as that of the year 1990, or an estimated 15% reduction compared to what emissions might otherwise have been in 2020. CARB was authorized to develop regulations to reach this goal, and the cap-and- trade program is one of several tools designed by CARB to do so. Under the terms of the CARE cap-and-trade program, an overall limit on GHG emissions from capped sectors of the state's economy was established and covered facilities subject to the cap are able to trade permits, or allowances,to emit GHGs up to the capped amount. CARB's implementation of the cap-and-trade program started in November 2012. The program was designed to phase in covered entities' participation over three compliance periods. The first period (calendar years 2013 and 2014) included electric distribution companies. CARB has freely allocated allowances to Vernon for its electric utility. Vernon utilizes the proceeds from the sale of any allowances not used to meet its compliance obligation exclusively for the benefit of retail electric ratepayers, and consistent with the goals of AB32. The City's gas utility cap-and-trade compliance obligations are distinct from those made for the electric utility. For Vernon's electric system, the Council previously approved Resolution No. 2011-184,dated November 15,2011, to implement a surcharge for the electric system. In 2015, as the second compliance period has begun,the scope of the cap-and-trade program has expanded such that natural gas suppliers have become covered entities with a compliance obligation based on retail gas sales and transportation, As was the case with the electric utility, Vernon has, been given freely allocated allowances for the gas utility for the purpose of mitigating the cost impact of cap-and-trade to retail customers. The volume of allowances provided by CARE that are available to be used directly to meet compliance obligations is not enough to cover all of Vernon's gas utility GHG emissions for two reasons. The first reason is program design, and the second is because of load growth on the Vernon gas system over the past three years. Finally, proceeds from auction sales of any of Vernon's freely allocated allowances must be used for the benefit of retail gas ratepayers, may not be volumetrically refunded, and must be consistent with the goals of AB 32. This necessitates the implementation of an energy efficiency program for natural gas, which will be addressed in a separate request from this one for a CARE Surcharge. Resources Needed Implementation of this surcharge will require modification to Vernon's utility billing software that must be done by Vernon's outside vendor. The cost for the modifications will not be significant, and administration time of the surcharge, once in place,will be minimal. Customer Communiealiorr Because implementation of the surcharge will be significant to some larger customers, the gas department has strategically prioritized customers into three categories for proactive contact: 1) Customers that will receive a visit from staff explaining the surcharge, 2) Customers that will receive a phone call from staff explaining the surcharge, and 3) All customers will receive a letter of explanation. Customers are being told about the surcharge, and also informed that an incentive program will follow that will enable them to receive rebate money to help pay for gas efficiency measures. Rate Schedule G-CARD VG&E's proposed Schedule G-CARB is attached as Exhibit A to the resolution. The rate schedule shows a formula for the determination of the surcharge. Administratively, the intent is that the surcharge would be adjusted annually, but it can also be adjusted more often if needed to keep the account from getting too far out of balance. The overall design of the cap-and-trade program will cause the surcharge to increase over the next several years. It is requested that this new rate schedule be effective April 1,2015. Billing Presentation of Surcharge The surcharge is proposed to show on the billing statement below"Total Charges for Meter"and above "Vernon Utility User Tax." The surcharge will be labeled "CA Greenhouse Gas Surcharge." An example billing presentation is attached. Accounting A new natural gas "sub-department" has been named "5610 AB-32." This sub-department will track all revenue and expenditures associated with the cap-and-trade program, including a reasonable level of administrative and overhead costs, and future expenditures for natural gas rebates to Vernon's gas customers. Establishment of this sub-department will also enable ongoing monitoring of the surcharge fund balance for the purpose of adjusting the level of the surcharge. All AB-32 cap-and-trade activities in the natural gas department will be kept separate from similar activities in the electric department. Presently, the initial surcharge is estimated to be $0.025 per Therm. Based on current delivered gas prices (commodity and transportation) of approximately $0.50 per Therm, the surcharge represents about a five percent overall increase in cost. Fiscal Impact The net fiscal impact of the cap and trade program to the Gas Division, by design, will be zero. Revenue during the first year is estimated to be approximately $600,000. Of that amount, approximately half will be used to pay for purchased emission allowances, and half will be reserved for funding a natural gas rebate program. Some funds will also be used to cover administrative and overhead costs. Attachments: I 1. Example gas bill i CM OF VIERNON LIGFET$POWERpEPT -CLi$TQI4lER SERVICE OMSIOAI Regular BillPREVIOUS BALANCE $23,060.02 4305 SANIA FE AVE. BILLING ADJUSTMENTS $0.00 VC,INON,CALIFORNIA,90058 BILLING DATE 01/07/2015 PAYMENTS AND PAYM.ADJ. $23,050.02CR BILLING NUMBER 2679321 DEPOSIT REFUNDS $0.00 ACCOUNT NUMBER 00006015 CYCLE 58 SPECIAL CHARGES $0.00 CUSTOMER NUMBER 00004863 BOOK NUMBER 01 CURRENT CHARGES $28,053.28 SERVICE ADDRESS 1946 E 46TH ST OUTAGE BLOCK 0 TOTAL AMOUNT DUE 3g9s8$3, 8 i Current Charges Due By. January 27,2015 PLEASE ENTER AMOUNT PAID �XAJr 1E C3 L. Lj l T ROYAL PRINTF,J(INC HGAS CUSTOMER ' ATTN: BRIAN HUH GPrR8 SuRGi4ARUE _ 1946 E 46TH ST VEFtNON CA 9068 01CO004663000060152679321002685328201501277 f PLEASE RETURN THIS PORTION VNTH YOUR PAYMENT ITT OF VE KNO lti REM nwsrarr- son roL+rrreacoatna BILLING DATE 01/07/2015 PREVIOUS BALANCE $23,060.02 BILLING NUMBER 2679321 BILLING ADJUSTMENTS $0•40 ACCOUNT NUMBER QODUO015 CYCLE 58 PAYMENTS AND PAYM.ADJ. $23,050.02CR CUSTOMER NUMBER 00OD4863 BOOK NUMBER 01 DEPOSIT REFUNDS $0.0D SERVICE ADDMS 1946 E 46TH ST OUTAGE BLOCK SPECAL CHARGES $0.00 Service Type Meter Read Date Read Date Days Previous Present Consumption BTU Conv � Number From To Read Read Factor Gas 00811417 12/0112014 OV0112015 31 472729 477720 49910 1.03300 Regular Bill Transaction Description Usage Rate Charge Billing 23,050.02 Payment-Thank You 23,050,02CR Balance Forward 0.00 Monthly Servioe Charge 50.00 !ate Total Therms 51557 GS2-Gas G•2 Small Transportation Charge Tier 1 4187 0.17312 724.85 Commerclal Smeller Transportation Charge Tier 2 47370 0.07735 3,064.07 Commodity Charge 51557 9.46500 23,974.01 Commodity Admin.Fee 51557 0.00300 154.67 Total Charges fog Meter-0081107 28,b67.60 arnon Utlllty War Talc(1%) 285.68 Total C urrent BI II 28,863.28 Total Amount Due 28,853.28 f 1, G A C(ea►��W� - S t1f.� . 551 4� -pax d k 4■ 4305 Santa Fe Avenue S 4 ' rnon Vernon,CA 90058 (323)583-8811 cm cow s omGk NOTICE OF PUBLIC HEARING The City Council of the City of Vernon will conduct a public hearing, which you may attend. PLACE: Vemon City Hall City Council Chambers i 4305 Santa Fe Avenue Vernon, CA 90058 DATE& Tuesday,March 17,2015 at 9:00 a.m. E TIME: (or as soon thereafter as the matter can be heard) SUBJECT: Consider evidence to establish and implement a new natural gas rate schedule that will take effect on April 1,2015 to collect funds needed to cover the cost of greenhouse gas emission allowances associated with the"cap-and-trade" program created by the California Air Resources Board("CARB") REQUEST: All parties are invited to be present and to submit statements orally or in writing before or during the applicable public hearing REVIEW OF Subject documents are available for inspection by the public at I THE FILE: Vernon City Hall, City Cleric Department, 4305 Santa Fe Avenue,Vernon, i California 90058,Monday through Thursday,7:00 a.m. to 5:30 p.m. and on the City's website at: lit tp:/hvww.city fvernon.orj,government/public- meetings/city-council PROPOSED Staff plans to recommend that the Vernon City Council determine CEQA that the proposals will not have a significant effect on the environment and FINDING: are exempt from the California Environmental Quality Act(CEQA) If you desire to challenge the actions taken by the City Council or any portion thereof in court,you may be limited to raising only those issues you or someone else raised at the applicable hearing described in this notice or in written correspondence delivered to the City of ' Vernon during,or before,the hearing. The hearing may be continued or adjourned or cancelled and rescheduled to a stated time and place without further afficial notie c of thie public ing. //rf Dated: 2`?.�".I Carlos Fandino,Jr., Director o r non Gas&Electric RESOLUTION NO . A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON APPROVING AND ADOPTING THE NATURAL GAS REBATE PROGRAM FOR CUSTOMERS CONNECTED TO THE CITY' S GAS DISTRIBUTION SYSTEM WHEREAS, the City of Vernon ( "City" ) is a chartered municipal corporation of the State of California that owns and operates a system for the generation, purchase, transmission, distribution and sale of electric capacity and energy; and WHEREAS, on March 17, 2015, the City Council of the City of Vernon adopted Resolution No. 2015-12 approving, establishing and implementing a natural gas surcharge to fund participation in the California Air Resources Board ("CARB" ) cap-and-trade allowance program, for gas distributed and supplied by the City within its boundaries; and WHEREAS, the Global Warming Solution Act of 2006, also known as Assembly Bill ("AB" ) 32, requires that California Greenhouse Gas ("GHG" ) emissions in 2020 be at the same levels as in 1990; and WHEREAS, by memorandum dated July 21, 2015 , the Director of Gas & Electric has recommended the establishment of the Natural Gas Rebate Program, which would reward energy efficiency measures taken by connected natural gas customers and would be consistent with the goals of AB 32; and WHEREAS, the City Council desires to adopt the Natural Gas Rebate Program. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS: SECTION 1 : The City Council of the City of Vernon hereby finds and determines that the above recitals are true and correct . SECTION 2 : The City Council of the City of Vernon finds that this action is exempt under the California Environmental Quality Act (CEQA) , in accordance with Section 15061 (b) (3) , the general rule that CEQA only applies to projects that may have an effect on the environment . SECTION 3 : The City Council of the City of Vernon hereby approves and adopts the Natural Gas Rebate Program (the "Program" ) , a copy of which is attached hereto as Exhibit A. SECTION 4 : The City Council of the City of Vernon hereby instructs the City Administrator, or his designee, to take whatever actions are deemed necessary or desirable for the purpose of implementing and carrying out the purposes of this Resolution and the transactions herein approved or authorized, including but not limited to, any non-substantive changes to the Program attached herein. - 2 - SECTION 5 : The City Clerk, or Deputy City Clerk, of the City of Vernon shall certify to the passage, approval and adoption of this resolution, and the City Clerk, or Deputy City Clerk, of the City of Vernon shall cause this resolution and the City Clerk' s, or Deputy City Clerk' s, certification to be entered in the File of Resolutions of the Council of this City. APPROVED AND ADOPTED this 4th day of August, 2015 . Name : Title : Mayor / Mayor Pro-Tem_ _ ATTEST: City Clerk / Deputy City Clerk APPROVED AS TO FORM: t—� Brian Byun, Deputy ity Attorney! 3 STATE OF CALIFORNIA ) ss COUNTY OF LOS ANGELES ) I, City Clerk / Deputy City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. , was duly passed, approved and adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Tuesday, August 4 , 2015, and thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon. Executed this day of August, 2015 , at Vernon, California. City Clerk / Deputy City Clerk (SEAL) 4 - EXxIB1� A CITY OF VERNON NATURAL GAS REBATE PROGRAM PROGRAM DESCRIPTION: This natural gas project rebate program is intended to encourage customers to reduce gas consumption, and thereby reduce greenhouse gas emissions. This can be accomplished by upgrading to high efficiency equipment, but also by an operational change that requires some investment. The City shall be open to any project or process change that can increase gas efficiency. The City shall also engage with customers to promote projects that qualify. The program will be administered through Vernon's natural gas and the customer service departments. POLICY STATEMENT: The City of Vernon shall allocate revenues to a natural gas rebate program derived from the CA Greenhouse Gas Surcharge approved in Resolution 2015-12, dated March 17, 2015, and effective April 1, 2015. These revenues are from the sale of"freely allocated greenhouse gas allowances," less the reasonable cost to administer the program. Rebates shall be allocated in a fair and equitable manner, and consistent with Assembly Bill 32 such that funds can be rebated to eligible customers that verifiably reduce greenhouse gas emissions to the atmosphere. PROGRAM FUNDING: Funding for this gas rebate program is exclusively from greenhouse gas allowances sold at each of the California Air Resource Board (CARE) cap-and-trade auctions. However, allowances sold must be replaced to fulfill the City's allowance requirement. Accordingly, the cost of all allowances purchased is covered by Vernon's gas customers through the CA Greenhouse Gas Surcharge on monthly natural gas billing statements effective April 1, 2015. The surcharge account balance is growing each month to reach a total of approximately $340,000 after the first 12 months. Administrative costs are expected to be 15 percent or less, which will include staff time to process applications and rebate evaluation, third- party technical verification when needed, and marketing of the program. PROGRAM OBJECTIVES: The objectives of the gas rebate program are to: • Support the statewide goal of reducing greenhouse gas emissions • Provide proceeds from the sale of freely allocated greenhouse gas allowances to Vernon gas customers for the purpose of reducing greenhouse gas emissions • Actively promote the program to Vernon's gas customers in an equitable manner • Design rebates such that rebate dollars are in proportion to benefit gained • Provide support to customers to facilitate qualifying projects, including application and verification • Maintain a reasonable cost to administer the program 1 BACKGROUND: The Global Warming Solution Act of 2006, also known as Assembly Bill 32, requires that California Greenhouse Gas (GHG) emissions in 2020 be at the same levels as that of the year 1990, or an estimated 15% reduction compared to what emissions might otherwise have been in 2020. CARB was authorized to develop regulations to reach this goal, and the cap-and-trade program is one of several tools designed by CARB to do so. Under the terms of the cap-and-trade program, an overall limit on GHG emissions from capped sectors of the state's economy was set, and covered facilities subject to the cap are able to trade permits, or allowances, to emit GHGs up to the capped amount. CARB's implementation of cap-and-trade program started November 2012. The program was designed to phase in covered entities' participation over three compliance periods. The first period (calendar years 2013 and 2014) included electric distribution companies. CARB has freely allocated allowances to Vernon for its electric utility. Vernon utilizes the proceeds from the sale of any allowances not used to meet its compliance obligation exclusively for the benefit of retail electric ratepayers, and consistent with the goals of AB 32. The City's gas utility cap-and-trade compliance obligations are distinct from those made for the electric utility. For Vernon's electric system, the Council previously approved Resolution No. 2011-184, dated November 15, 2011, to implement a surcharge for the electric system. In 2015, as the second compliance period has begun, the scope of the cap-and-trade program has expanded such that natural gas suppliers have become covered entities with a compliance obligation based on retail gas sales and transportation. As was the case with the electric utility, Vernon has been given freely allocated allowances for the gas utility for the purpose of mitigating the cost impact of cap-and-trade to retail customers. A set percentage of those allowances must be sold in the open market, and the total of allowances is insufficient to cover Vernon's obligation to CARE. Consequently, Resolution 2015-12 was passed by City Council March 17, 2015, effective April 1, 2015, implementing Rate Schedule G-CARB, to begin collecting the California Greenhouse Gas Surcharge from all Vernon gas customers. The purpose of the surcharge is to collect additional funds necessary to cover the cost of allowances sold at auction, and also purchase additional allowances necessary to meet the City's compliance requirement for 2015, and beyond_ Proceeds from all auction sales of Vernon's freely allocated allowances must be used for the benefit of retail gas ratepayers, may not be volumetrically refunded, and must be consistent with the goals of AB 32. The following specific language is from Section 95893, Part (d), of the Final Regulation Order (as of January 2015) issued by the California Air Resources Board. (3) Auction proceeds and allowance value obtained by a natural gas supplier shall be used exclusively for the benefit of retail ratepayers of each natural gas supplier, consistent with the goals of AB 32, and may not be used for the benefit of entities of persons other than such ratepayers. Any revenue returned to ratepayers must be done in a non-volumetric manner. (4) Public utility gas corporations shall ensure equal treatment of their procurement and delivery customer and delivery-only customers. 2 (5) Prohibited Use of Allocated Allowance Value. Use of the value of any allowance allocated to a natural gas supplier, other than for the benefit of retail ratepayers consistent with the goals of AB 32, is prohibited. Consequently, this necessitates the implementation of an energy efficiency program for natural gas, which is specified in detail as follows. REBATES: Pipe Insulation: Minimum pipe diameter must be one-half inch. Pipe must transport hot water or steam directly from gas-fired equipment. A minimum of one inch of insulation must be added to the existing bare pipe. Manufacturer's specifications must be included. Pipe Insulation, Hot Water: $2 /linear foot Pipe Insulation, Steam: $3 /linear foot Tank Insulation: One or two inches of fiberglass or foam insulation must be added to existing bare liquid tanks. One-inch insulation: $2/square foot Two-inch insulation: $3 lsquare foot Process Boilers: Boiler must replace an existing boiler. Application must include the manufacturer's name and model name/number for the new boiler. New boilers must have combustion test under full load conditions to document achieving the specified minimum combustion efficiency. The predefined rebates below are only for boilers with input less than or equal to 20,000 MBtuh. Larger boiler improvements may be eligible to receive rebates based on the customized rebate calculation, but must have a professional Flue Gas Analysis before, and then after, to determine the improvement in Combustion Efficiency (CE). Water Boilers: $2 /MBtuh (> 84% CE) Steam Boilers: $2/ MBtuh (> 83% CE) MBtuh = 1,000 Btu per hour. CE = 100% - Stack loss in % Steam Traps: Must replace, on a one-for-one basis, existing steam traps that fail to open. Application must include manufacturer's specification sheet for the steam trap that replaces the existing trap, as well as the invoice for the purchase. Steam Traps: $100 per trap Customized Rebates: Energy savings projects can be customized beyond the predefined rebates. Customized rebates may be used for equipment replacements and improvements of existing processes. Customized Rebate: $1 per each annual Therm saved 3 Customized projects require load history, performance calculations, and a detailed engineering review. Vernon's gas customers must consult with Vernon Gas Division to validate projects that meet the program objectives, depending on funding available. Lease projects may qualify dependent upon the term of the lease requiring a minimum 5 years_ SPECIAL PROVISION FOR OTHER GREENHOUSE-GAS REDUCING REBATES: The first priority of funding associated with this program shall be to qualified projects that result in more efficient combustion of natural gas; however, rebate funds may also be used to support projects that reduce greenhouse gas emissions in other ways that are consistent with AB 32 and CARB guidelines. Subject to funding availability and compliance with the Rebate Conditions identified below, non-gas projects may be considered except the rebate will be based directly on the metric ton equivalent reduction of carbon dioxide or other greenhouse gas as defined by CARB. The rebate amount shall be developed based on the merits of the proposed project and shall be consistent in contribution level with rebate levels otherwise used for customized gas projects. REBATE CONDITIONS: 1. Applicant must allow City of Vernon to be involved from the beginning of the applicant's process, such that Vernon can inspect and audit the equipment to be replaced prior to it being removed. 2. Rebates are contingent upon applicant being an active customer in good standing connected to the City of Vernon gas system and paying the G-CARB surcharge. 3. Rebates are contingent upon customers obtaining the necessary permits from the City of Vernon for all work done associated with the rebate application. 4. All rebates will be paid directly to the customer of record at a given Vernon location. 5. Natural gas savings must be quantified using reasonable engineering assumptions and calculations, except for the predefined rebate categories. 6. Equipment or systems installed must be expected to operate for at least five years from the date of installation. 7. Projects that receive incentives from other sources (excluding tax-related incentives) are not eligible. 8. The maximum amount of rebate shall not exceed fifty percent of the project cost overall. 9. Available rebate funding shall be allocated based on the timing of application acceptance and approval. 10. The maximum rebate amount is planned at $100,000 per customer per year subject to funds availability; however City may allow higher rebates on a case-by-case basis, subject to the amount of total rebate funding accumulated in the City's rebate balancing account. 11. Rebate program is not for new construction, nor is it for replacement, nor for installation where otherwise required by California Building Code or employee safety laws. 4 PROGRAM APPLICATION AND CONFIRMATION: 1. Pre-]nstallation Application Applicants must submit a pre-installation application before beginning project work. Customer initiated installations prior to City acceptance of the pre-installation application will be rejected. The pre-installation application must contain the information necessary to determine the savings and shall be the basis for the rebate. Subject to availability of funds, the City reserves money for the project, pending timely completion of installation. The pre-installation application shall consist of the following: ■ Customer and project site information ■ A technical description of the project • Documentation of the savings estimated (an engineering calculation) • New/old equipment specification (if applicable) 2. Post-Installation Confirmation The post-installation confirmation shall be coordinated by the applicant after the project is installed. The confirmation shall be the basis for the actual rebate paid, and shall consist of the following. • Any changes from the pre-installation application • Documentation showing actual Therms saved • Original, itemized, paid proof of purchase (sales slip or invoice) • Scheduled site visit(s) for City to verify energy efficiency equipment modifications, installations, and overall efficiency impact MARKETING: Upon approval of the program, staff will notify all customers by letter or direct email including the details of the program. However, staff anticipates that the bulk of rebate funds will go to larger projects focused on customized rebates for boilers or controls upgrades. This is because statistically 90 percent of all gas consumed is by only 30 percent of customer accounts, 19 of 65 total customers, not including Owens or MGS. Essentially all of the gas is consumed in boilers. Consequently, staff will personally contact each of these largest customers to explain the program in detail, including availability of technical resources and funds. These customers are already aware the program is coming based on the initial meetings explaining the Greenhouse Gas Surcharge they are now paying. Accordingly, successful implementation of this program will be highly dependent on targeting promotion to Vernon gas customers. PROGRAM ADMINISTRATION: The Natural Gas Division of Vernon Gas & Electric will lead program administration. The Division will be responsible for developing and distributing promotional materials, setting 5 appointments with customers to explain the program, following up with customers, and facilitating the application, construction, and completion process. The Customer Services Division will process the actual paper work and rebate check requests similar to the electric rebate program. The amount of time required by Customer Services will be minimal. Applications are anticipated at a rate of one per month, much less than the electric rebate program- As-needed rebate evaluation and audit support will be provided by IGService, already under contract with City of Vernon for natural gas support services. A reasonable proportionate cost for each person/department supporting the program will be allocated as administrative cost to the program. 6 CITY OF VERNON Natural Gas Project Rebate Program Pre-Installation Application To be eligible for rebates.this application must be submitted to the City of Vernon and approved by Vernon before beginning proiect work. Customer Name/Payee: DBA: Mailing Address: Installation Address in Vernon: Customer Contact: _ ., Federal Tax [D: Phone: Email: _ Please describe the energy savings andlor qualifying replacement equipment of your proposed project. For customized projects please provide detailed calculations of expected Therms saved. Include attachments,as needed. Measure Description Units Installed Rebate Rebate Amount or Therms Saved $IUnit $ Total Rebate Requested: AGREEMENT CLAUSE:I/We agree as follows: 1)To begin the project within 90 days of initial Vernon inspection and approval and finish within one year of project commencement;2)To allow the Vernon Utilities Department to conduct scheduled site visits to verify installation of the hardware specified in this application;3)To provide the original,itemized,paid proof of purchase(sales slip or invoice),complete a post-installation confirmation form,and worksheet showing actual installed equipment(as applicable) all at completion of project;4)Unless a written exception is provided by City of Vernon.this rebate shall not to exceed one hundred thousand dollars or fifty percent of the paid proof of purchase(sales slip or invoice),whichever is less;5)Rebate will be calculated per the rebate schedule in effect at the time of approval of this application;6)Rebates are subject to availability of funds;7)That the City of Vernon may withhold payment of any rebate until satisfaction of any and all of the above listed conditions are met. Customer Signature: Title: _ Print Name: Date: Vernon Utilities Department Only Date Pre-Inspection: Inspected by: Approved by: CITY OF VERNON Natural Gas Project Rebate Program Post-Installation Confirmation This Post-Installation Confirmation is associated with Pre-Installation Application with Customer dated: Customer Name/Payee: DBA Business Name: Mailing Address: Installation Address in Vernon: Customer Contact: Federal Tax ID: Phone: Email; Please describe any variations from the Pre-installation Application: Measure Description as Installed Units Installed Rebate Rebate Amount or Therms Saved $[Unit $ Total Rebate Requested: Attachments to be included with this form: A)Installer's statement of actual equipment installation(size and specifications)and/or finalized Therm savings computation B)Copies of manufacturer's specifications and performance data C)Original,itemized,paid proof of purchase(sales slip or invoice) Customer Signature: Title: Print Name: Date: Vernon Utilities Department Only Date Post-Inspection: Inspected by: Approved by: _ r 8 i RECEIVED ��l�ED ' Y - REC JUL 2 l 2015 3Ut 2 9 20i5 IMRKSOfFICE STAFF REPORT C�TYA�Cr,I�I�STRn�ior� My MKS GAS & ELECTRIC DEPARTMENT rim DATE: August 4, 2015 TO: Honorable Mayor and City Council C0 IV FROM: Carlos Fandino Jr., Director of Vernon Gas & Electric Department Originator: Javier Valdez, Business & Account Supervisor RE: Request for Approval of an Agreement with Absolute International Security, Inc. in Response to the City's Request for Proposals for Unarmed Security Guard Services Recommendation A. Find that proposed agreement by and between the City of Vernon and Absolute International Security, Inc. ("AIS") is exempt under the California Environmental Quality Act (CEQA) in accordance with CEQA Guidelines Section 15061(b)(3), the general rule that CEQA only applies to projects that may have a significant effect on the environment, because the agreement does not have an impact; and B. Accept the proposal from AIS as the most qualified and cost effective respondent, rejecting all other proposals; and C. Award and authorize the execution of the services agreement by and between the City of Vernon and Absolute International Security, Inc., in substantially the same form as submitted herewith, for unarmed security guard services. The proposed contracted services equate to a total compensation amount not-to-exceed $253,294.00 per year, with an incremental increase of up to 5% to be considered over the three (3) year term of the agreement. Background The Vernon Gas & Electric ("VG&E") Department currently employs a temporary staffing service firm through SCPPA to manage the security staff that patrol station "A". In order to optimize security expertise and gain a more comprehensive security service, VG&E determined that establishing a contract with a firm that specializes in security services was a more appropriate route to pursue. The type of quality service provided from such a firm will be of greater benefit to the City. Page 1 of 2 The purpose of deploying security personnel is to provide a presence at the Vernon Gas & Electric ("VG&E") Station "A" Power Plant and Soto Yard to deter unwanted activities such as theft, vandalism, loitering and trespassing; respond to emergencies; and intervene if and when hostile confrontations on City property occur. The firm will assist in providing unarmed security services to monitor Station A Soto entry gate and deliver 24 hours per day/7 days per week surveillance and roving patrols throughout the City's critical substations, infrastructure and inventory locations. On May 14, 2015, City staff properly publicized the Request for Proposal (RFP) for Unarmed Security Guard Services for the City of Vernon, pursuant to Vernon Municipal Code section 2.17.14. The City received a total of twenty two (22) timely proposals from qualified firms. Of the twenty two (22) respondents, seven (7) met the minimum criteria for further review. A panel of City staff was assembled to assess the credentials of the seven remaining firms. Prior to beginning initial evaluations, the team agreed to interview all firms that scored above 80 out of 100 total points. Ultimately, only two (2) select firms were interviewed. After thorough consideration and collaboration, Absolute International Security, Inc. was selected as the as the desired recipient of the contract award. In light of the foregoing, it is recommended that Council approve the award of a contract to AIS for unarmed security services for a three (3) year term, as staff is in agreement that AIS is the most suitable firm to provide quality security services to the City. Fiscal Impact The proposed amount for the service contract with AIS totals $253,294 per year, with an incremental increase of up to 5% possible over the three (3) year term of the agreement. The expenditure for security services has been specifically identified in the 2015-2016 approved budgets. Attachment(s) 1. Professional Services Agreement by and between the City of Vernon and Absolute International Security, Inc. Page 2 of 2 :oPY PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF VERNON AND ABSOLUTE SECURITY INTERNATIONAL, INC. FOR UNARMED SECURITY GUARD SERVICES COVER PAGE Contractor: Absolute International Security Inc. Responsible Principal of Contractor: Lucy Lin, President Notice Information - Contractor: Absolute International Security Inc. 861 South Oak Park Road Covina, CA, 91724 Attention: Lucy Lin, President Phone: (626) 858-7188 Facsimile: (626) 858-2882 Notice Information - City: City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 Attention: Carlos Fandino Jr. Director of Gas & Electric Telephone: (323) 583-8811 ext. 573 Facsimile: (323) 826-1408 Commencement Date: August 17, 2015 Termination Date: August 16, 2018 (unless terminated earlier) Consideration: Total not to exceed $ 798,510 (includes all applicable sales tax); and more particularly described in Exhibit C Records Retention Period Three (3) years, pursuant to Section 9.19 August 2013 AP% PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF VERNON AND ABSOLUTE INTERNATIONAL INC., FOR UNARMED SECURITY GUARD SERVICES This Contract is made between the City of Vernon ("City"), a California charter City and California municipal corporation ("City"), and Absolute International Inc., a California company ("Contractor"). The City and Contractor agree as follows: 1.0 EMPLOYMENT OF CONTRACTOR. City agrees to engage Contractor to perform the services as hereinafter set forth as authorized by the City Council on August 4, 2015. 2.0 SCOPE OF SERVICES. 2.1 Contractor shall perform all work necessary to complete the services set forth in the Request for Proposals dated May 14, 2015, Exhibit "A", and Contractor's proposal to the City ("Proposal") dated June 22, 2015, Exhibit "B", both of which are attached to and incorporated into this Contract, by reference. 2.2 All services shall be performed to the satisfaction of City. 2.3 All services shall be performed according to the standards then prevailing in the Califomia profession. 3.0 PERSONNEL. 3.1 Contractor represents that it employs, or will employ, at its own expense, all personnel required to perform the services under this Contract. 3.2 Contractor shall not subcontract any services to be performed by it under this Contract without prior written approval of City. 3.3 All of the services required hereunder will be performed by Contractor or by City-approved subcontractors. Contractor, and all personnel engaged in the work, shall be fully qualified and authorized or permitted under State and local law to perform such services and shall be subject to approval by the City. 4.0 The Contractor shall commence the delivery of services on receipt of a written notice to proceed and shall complete the services on the schedule set forth in Exhibit "C". 2 August 2013 The term of this Contract shall commence on August 17, 2015, and it shall continue until August 16, 2018, unless terminated at an earlier date pursuant to the provisions thereof. 5.0 COMPENSATION AND FEES. 5.1 Contractor has established rates for the City of Vernon which are comparable to and do not exceed the best rates offered to other governmental entities in and around Los Angeles County for the same services. For satisfactory and timely performance of the services, the City will pay Contractor in accordance with the payment schedule set forth in Exhibit "C". 5.2 Contractor's grand total compensation for the entire term of this Contract, including change orders, shall not exceed ($798,510) without the prior authorization of the City Council and written amendment of this Contract. 5.3 Contractor shall, at its sole cost and expense, furnish all necessary and incidental labor, material, supplies, facilities, equipment and transportation which may be required for furnishing services pursuant to this Contract. Materials shall be of the highest quality. The above Contract fee shall include all staff time and all clerical, administrative, overhead, insurance, reproduction, telephone, air travel, auto rental, subsistence, and all related costs and expenses. 6.0 PAYMENT. 6.1 As scheduled services are completed, Contractor shall submit to the City an invoice for the services completed, authorized expenses, and authorized extra work actually performed or incurred according to said schedule. 6.2 Each such invoice shall state the basis for the amount invoiced, including a detailed description of the services completed, the number of hours spent, reimbursable expenses incurred and any extra work performed. 6.3 Contractor shall also submit a progress report with each invoice that describes in reasonable detail the services and the extra work, if any, performed in the immediately preceding calendar month. 3 August2013 6.4 Contractor understands and agrees that invoices which lack sufficient detail to measure performance will be returned and not processed for payment. 6.5 City will pay Contractor the amount invoiced within thirty (30) days after the City approves the invoice. 6.6 Payment of such invoices shall be payment in full for all services, authorized costs and authorized extra work covered by that invoice. 7.0 CHANGE ORDERS. The Director of the Department of Gas & Electric shall have the authority to issue change orders for administrative and non-material changes to the scope of services and to the time for performance as long as the change orders do not increase the compensation due to Contractor under this Contract and as long as the time is not extended beyond three years. The City Administrator, shall have the authority to issue administrative change orders to increase the compensation due Contractor under this Contract, but the combined total amount of such change orders shall not exceed ($798,510). 8.0 CITY`S RESPONSIBILITY. City shall cooperate with Contractor as may be reasonably necessary for Contractor to perform its services; and will give any required decisions as promptly as practicable so as to avoid unreasonable delay in the progress of Contractors services. 9.0 GENERAL TERMS AND CONDITIONS. 9.1 INDEPENDENT CONTRACTOR. 9.1.1 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 4 August 2013 of its employees, including compliance with social security, withholding and all other wages, salaries, benefits, taxes, exactions, and regulations of any nature whatsoever. 9.1.2 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. 9.2 CONTRACTOR NOT AGENT. Except as the City may authorize in writing, Contractor and its subcontractors shall have no authority, express or implied, to act on behalf of or bind the City in any capacity whatsoever as agents or otherwise. 9.3 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 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. 9.4 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. 9.5 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 August2013 9.6 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. 9.7 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. 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. 9.8 COMPLIANCE WITH LAWS. Contractor shall comply with all Federal, State, County and City laws, ordinances, rules and regulations, which are, as amended from time to time, incorporated herein and applicable to the performance hereof, including but without limitation, the Vernon Living Wage Ordinance. Violation of any law material to performance of this Contract shall entitle the City to terminate the Contract and otherwise pursue its remedies. 9.9 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. 9.10 INTERPRETATION. 9.10.1 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. 9.10.2 Entire Agreement. This Contract, including any exhibits attached hereto, constitutes the entire agreement and understanding between the parties regarding its subject matter and supersedes all prior or contemporaneous negotiations, representations, understandings, correspondence, documentation and agreements (written or oral). 6 August2013 9.10.3 Written Amendment. This Contract may only be changed by written amendment signed 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. 9.10.4 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. 9.10.5 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. The terms of the City's Request for Proposals shall control over the Contractor's Proposal. 9.10.6 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 and/or is to be performed 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. 9.10.7 Duplicate Originals. There shall be two (2) fully signed copies of this Contract, each of which shall be deemed an original. 9.11 TIME OF ESSENCE. Time is strictly of the essence of this contract and each and every covenant, term and provision hereof. 9.12 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. 9.13 ARBITRATION OF DISPUTES. Any dispute for under$25,000 7 August 2013 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 jurisdiction thereof. The City does not waive its right to object to the timeliness or sufficiency of any claim filed or required to be filed against the City and reserves the right to conduct full discovery. 9.14 INDEMNITY. Contractor agrees to indemnify, hold harmless and defend (even if the allegations are false, fraudulent or groundless), to the maximum extent permitted by law, the City, its City Council and each member thereof, and its officers, employees, commission members and representatives, from any and all liability, loss, suits, claims, damages, costs, judgments and expenses (including attorney's fees and costs of litigation) which in whole or in part result from, or arise out of, or are claimed to result from or to arise out of: 1) any activity on or use of City's premises or facilities or any performance under this Contract; or (2) any acts, errors or omissions (including, without limitation, professional negligence) of Contractor, its employees, representatives, subcontractors, or agent in connection with the performance of this Contract. i. This agreement to indemnify includes, but not limited to, personal injury (including death at any time) and property or other damage (including, but without limitation, contract or tort or patent, copyright, trade secret or trademark infringement) sustained by any person or persons (including, but not limited to, companies, or corporations, Contractor and its employees or agents, and members of the general public). 9.14.1 RELEASE. Contractor agrees to release and covenants not to sue time City, its City Council and each members thereof, and its officers, employees, commission 8 August 2013 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. 9.15 INSURANCE. Contractor shall, at its own expense, procure and maintain policies of insurance of the types and in the amount set forth below, for the duration of the Contract, including any extensions thereto. The policies shall state that they afford primary coverage. i. Automobile Liability with minimum limits of at least $100,000/300,000/50,000 if written on a personal automobile liability form, for using a personal vehicle; or an amount of$500,000 including owned, hired, and non-owned liability coverage if written on a Commercial automobile liability form. ii. General Liability with minimum limits of at least $1,000,000 combined single limits 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 insured as respects liability arising out of the Contractor's performance of this Contract. (1) If Contractor employs other contractors as part of the services rendered, Contractor's Protective Coverage is required. Contractor may include all subcontractors as insured under its own policy of shall furnish separate insurance for each subcontractor, meeting the requirements set forth herein. (2) Blanket Contractual Coverage (if required by the city)_ (3) Products/Completed Operations Coverage (where such risk is applicable, as determined by the city) (4) Explosion, Collapse and/or Underground (X, C, and/or U) coverage (where such risk is applicable, as determined by the city). 9 August 2013 iii. Professional Errors and Omissions coverage in a sum of at least $1,000,000. Applicable aggregates must be identified and claims history provided to determine amounts remaining under the aggregate. iv. Contractor shall comply with the applicable sections of the California Labor Code concerning worker's compensation for injuries on the job_ Compliance is accomplished in one of the following manners: (1) Provide copy of permissive self-insurance certificate approved by the State of California; or (2) 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 (3) 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. V. 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. vi. Insurance shall be placed with insurers with a Best's rating of no less than B. vii. Prior to commencement of performance, Contract shall furnish City with a certificate of insurance for each policy. Each certificate is to be signed by a person authorized by that insurer to bind coverage on its behalf. The certificate(s) must be in a form approved by City. City may require complete, certified copies of any or all policies at any time. 10 August 2013 viii. Failure to maintain required insurance at all times shall constitute a default and material breach. In such event, Contractor shall immediately notify City and cease all performance under this 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. 9.16 NOTICES. Any notice or demand to be given by one party to the other 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: Department of Gas & Electric 4305 Santa Fe Ave. Vernon, CA 90058 Attention: Javier Valdez If to the Contractor: Absolute International Security, Inc. 861 South Oak Park Road Covina, CA 90058 Attention: Lucy Lin 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 11 August 2013 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. 9.17 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 Contractors 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. 9.18 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 ten (1 D) 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 performed in a timely and satisfactory manner, and (2) costs incurred by the City in obtaining substitute performance. 9.19 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. 12 Augusr2013 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. 9.20 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. 9.21 ENFORCEMENT OF WAGE AND HOUR LAWS. Eight hours labor constitutes a legal day's work. The Contractor, or subcontractor, if any, shall forfeit twenty-five dollars ($25) for each worker employed in the execution of this Agreement by the respective Contractor or subcontractor for each calendar day during which the worker is required or permitted to work more than 8 hours in any one calendar day and 40 hours in any one calendar week in violation of the provisions of Sections 1810 through 1815 of the California Labor Code as a penalty paid to the City; provided, however, work performed by employees of contractors in excess of 8 hours per day, and 40 hours during any one week, shall be permitted upon compensation for all hours worked in excess of 8 hours per day at not less than 1'/2 times the basic rate of pay. 9.22 LIVING WAGES. Contractor, and any Subcontractor(s), shall comply with the City's Living Wage Ordinance. The current Living Wage Standards are set forth in Exhibit "D". Upon the City's request, certified payroll records shall promptly be provided to the City. 9.23 EQUAL EMPLOYMENT OPPORTUNITY PRACTICES. Contractor certifies and represents that, during the performance of this Contract, it and any other parties with whom it may subcontract shall adhere to equal employment opportunity practices to assure 13 August 2013 that applicants, employees and recipients of service are treated equally and are not discriminated against because of their race, religion, color, national origin, ancestry, disability, sex, age, medical condition, sexual orientation or marital status. Contractor further certifies that it will not maintain any segregated facilities. Contractor further agrees to comply with The Equal Employment Opportunity Practices provisions as set forth in Exhibit "E". [Signatures Begin on Next Page]. 14 August 2013 IN WITNESS WHEREOF, the Parties have signed this Agreement as of the date stated in the introductory clause. City of Vernon, a California charter City Absolute International Security, Inc., a and California municipal corporation California company By: By: W. Michael McCormick, Mayor Name: Title: ATTEST: By: Maria Ayala, City Clerk Name: Title: APPROVED AS TO FORM: Hema Patel, City Attorney 15 Augusl2013 EXHIBIT A REQUEST FOR PROPOSALS 16 August2013 City of Vernon Request for Proposals (RFP) Unarmed Security Guard Services ,OF 10 F i City of Vernon Department of Gas & Electric 4305 Santa Fe Avenue, Vernon Ca 90058 Phone: (323) 583-8811 City of Vernon Unarmed Security Guard Services Request for Proposals CITY OF VERNON REQUEST FOR PROPOSAL UNARMED SECURITY GUARD SERVICES 1. INTRODUCTION AND PROJECT The City of Vernon is soliciting proposals from qualified public entities or private firms, to establish a contract for unarmed guard security services to provide a presence at the Vernon Gas & Electric ("VG&E") Station "A" Power Plant and Soto Yard to deter unwanted activities such as theft, vandalism, loitering, trespassing, respond to emergencies, and intervene in hostile confrontations on City properties. The City will select one qualified public entity or firm, based on demonstrated competence and a cost effective approach to design, conduct, and assist in providing unarmed security services to monitor Station A Soto entry gate, 24 hours per day, 7 days per week surveillance and roving patrols throughout the City of VG&E critical substations, infrastructure and inventory locations. 2. BACKGROUND The City of Vernon was founded in 1905, is approximately 5.2 square miles in size and is located approximately 5 miles southeast of downtown Los Angeles California. Over its long history Vernon has been developed as an industrial community. At the turn of the 20" century the lands that make up Vernon were comprised largely of farmlands. The presence of three major rail lines in the area led influential business men and property owners to encourage the railroad companies to run spur lines onto the farmlands. These rail extensions enabled the creation of an "exclusively industrial" city. By the 1920's Vernon was attracting large stockyards and meatpacking facilities. In the 1930's Vernon became the location of choice for many heavy industrial plants. As economic conditions changed over the decades, these large scale industrial operations have relocated out of Southern California and Vernon has attracted smaller, lighter industrial facilities. The City's business friendly environment, low cost utilities and key location for trucking and rail transport continue to position Vernon as an ideal location for industrial uses. City Government: The City Council consists of five members, elected at-large, who serve five-year staggered terms. The City Council annually appoints a Mayor and a Mayor Pro Tem from its own membership to serve one-year terms. Labor Force: Vernon has approximately 250 employees, and its departments include a Fire Department, Police Department, Finance Department, Public Works, Water and Development Services Department, Gas and Electric Department and Health and Environmental Control Department. Present bargaining units recognized include the Vernon Police Officers Benefit Association, Vernon Police Management Association, Vernon Firemen's Association, the Vernon Fire Management Association, International Brotherhood of Electrical Workers Local 47, and Teamsters Local 911. 3. ISSUES OR PROBLEMS TO BE ADDRESSED - 2- City of Vernon Unarmed Security Guard Services Request for Proposals Unarmed security services to monitor the VG&E Station A Soto St. entry gate to permit authorized entry and document surveillance activity. Also perform patrol throughout the VG&E critical substations, infrastructure, inventory and equipment to deter any burglary, damage and or tampering to City electrical infrastructure. 4. SCOPE OF SERVICES REQUIRED The City of Vernon is seeking the services of a highly qualified public entity or private firm to provide unarmed guard security services to monitor the VG&E Station "A" Soto entry gate, provide surveillance services for the Vernon Substation 24 hours, 7 days a week and to patrol the Power Plant located at 4990 Seville St. and the Soto Yard located at 4700 Soto St. SERVICES • Regular patrol and monitoring of Station "A" Power plant and Soto Yard. • Observe and report any unacceptable behavior to the (VG&E) Station A Control Room Dispatch (CRD) and/or Vernon Police Department (VPD). • Escort any individual from premises upon the direction of City staff and call police when necessary. • Check the exterior of the buildings for vandalism and other unusual conditions. • Report security and public safety problems to VPD immediately. • Report security problems to Station A CRD and/or VPD. • Complete, sign and provide a written Daily Activity Report (DAR) of all incidents and occurrences to the City designee at the end of each day's shift. • Report damage problems to the City designee and Operations Manager. 5. QUALIFICATIONS & CRITERIA A. Qualifications: The City of Vernon will select one public entity or firm for all of the outlined Scope of Service on the basis of qualifications, experience, and overall cost to the City. The following are the minimum qualifications to be used to evaluate responses to this Request for Proposal: Security Guard Requirements • Be a legal resident of the United States. • Maintain a current State of California guard card and maintain appropriate certifications for safety equipment such as batons, pepper spray, etc. • Be pleasant and courteous to clients and staff at all times. • Be sensitive to the diversity of patrons and staff. • Be physically and emotionally capable of performing assigned tasks. • Effectively communicate and follow written and oral instructions in English. • Report to the site on or before the designated shift start time ready to begin work. • Check-in with his/her designee prior to each shift for any updates and/or additional duties. • Request the assistance of VPD if any individual becomes abusive or unmanageable. • Ensure that the Station A CDR and VPD have the on-duty security guard's - 3- City of Vernon Unarmed Security Guard Services Request for Proposals cellular phone number. • Prepare a Daily Activity Report (DAR) recording all patrols, incidents, actions, and other pertinent data for the City designee. • Attend mandatory City trainings that are paid for by the City. Prohibitions • Unarmed security guard(s) employed for the purpose of performing duties under the Contract shall not: ➢ Carry a firearm, Taser, or any other weapon unless authorized by the City. ➢ Wear head phones, listen to music, smoke, groom, or read unauthorized materials while on duty. ➢ Conduct personal phone calls except in the event of an emergency. ➢ Enter any area designated "off limits" except as needed to respond to an emergency. ➢ Bring any type of electronic equipment, device, machine, or appliance for personal use onto City property without prior approval from the City designee. ➢ Bring visitors (including children and relatives) onto the work site. ➢ Use any City equipment (copy, machines, fees, computers, etc.) unless authorized by City staff. ➢ Use any City telephone, except as specifically needed to perform assigned duties and/or unless authorized by City staff. ➢ Attempt to force or enforce corrective action, other than to escort individuals from the premises. ➢ Have any felony convictions, outstanding warrants, crimes of moral turpitude, and crimes involving domestic violence. ➢ Accept any gratuities. Contractor Responsibilities • Contractor shall ensure that all assigned unarmed security guards: ➢ Are physically able to perform all of the required duties. ➢ Have the ability to communicate with the City staff at all times during their shift. ➢ Have been thoroughly: 1. Trained in their capacity as security guards. 11. Trained in the requirements of this Contract. III. Trained on the facilities included under this Contract. IV. Trained on the procedures included under this Contract. • Contractor shall immediately remove any unarmed security guard from assignment upon instruction by the designated staff. • Contractor must change, add, delete, or modify assignments as requested and directed by the designated staff. • Contractor shall provide each guard with: ➢ A celphone with back-up batteries. ➢ An operable flashlight and rain gear during inclement weather. ➢ Appropriate report forms. ➢ Uniforms: Worn or tom uniforms will be replaced at the Contractor's -4 - City of Vernon Unarmed Security Guard Services Request for Proposals expense. The City reserves the right to approve or have input on uniform style, color, appearance, and proper fit. ➢ The telephone numbers for emergency services (fire, theft, medical emergency, etc.) ➢ The emergency telephone number for the Contractor and principal representatives of the Contractor. ➢ A copy of their company rules and operating procedures. Provide a copy to the City designee as well. Contractor shall: • Assign fully-trained, unarmed security guards(s) for the assignment. • Ensure that each unarmed security guard remain on duty and are performing the assigned duties throughout the entire designated shift. • Late arrivals and absences are not acceptable. Scheduling • Contractor must provide unarmed security services to monitor the Station "A" Soto entry gate, permitting and documenting authorized entry only and providing surveillance services for Vernon Substation 24 hours per day, 7 days per week. Contractor must also provide unarmed security services to monitor activities and document entry into the Soto Yard facility as well as perform frequent, roving patrols throughout the city of VG&E critical substations, infrastructure, inventory, equipment and assets nightly between 5:30 p.m. and 5:30 a.m. Contractor must provide security services based out of Soto Yard performing roving patrols throughout the city on Friday, Saturday and Sunday between 5:30 a.m. and 5:30 p.m. B. Selection Criteria: The City will conduct a comprehensive, fair, and impartial evaluation of proposals received in response to this RFP. All proposals received from contractors will be reviewed and evaluated by a committee of qualified personnel. The name, information, or experience of the individual members will not be made available to any vendor. The Evaluation Committee will first review and screen all proposals submitted, except for the cost proposals, according to the minimum qualifications set forth above. The following criteria will be used in reviewing and comparing the proposals and in determining the highest scoring bid: 1. 40% Qualifications, background and prior experience of the firm in the Service Area(s) being proposed, experience of key staff assigned to oversee services provided to Vernon, evaluation of size and scope of similar work performed and success on that work. 2. 30% Cost and fees to the City for handling matters. Cost is not the sole determining factor but will be taken into consideration. Proposer must offer services at a rate comparable to the rate proposer offers to other governmental entities for similar work. Offering a higher rate to the City than the comparable rate is grounds for disqualification of the Proposer. If rates differ for different types or levels of service, or for different Service Areas, the Proposer should so state. - 5- City of Vernon Unarmed Security Guard Services Request for Proposals 3. 10% Responsiveness to the RFP, and quality and responsiveness of the proposal. 4. 20% References including past performance of proposer. 6. FORMAT AND DELIVERY RESPONSE Respondents are asked to submit seven (7) copies and one (1) electronic copy of their proposals in sufficient detail to allow for a thorough evaluation and comparative analysis. The proposal should include, at a minimum, the following information in sectionalized format addressing all phases of the work in the RFP. A. Format: Limit your proposal to 20 typed 8.5" X 11" pages, or fewer, on white bond paper of at least 20-pound weight single sided (excluding cover letter and attachments. You may attach a firm brochure if you wish, but it must be as a separate attachment and independent from the required elements noted above. 1. Use a conventional typeface with a minimum font size of 12 points. Use a 1" margin on all boarders. 2. Organize your submittal in the order described above. 3. Provide one (1) unbound original of your firm's response and one electronic version 4. Prominently label the package: "RFP for Unarmed Security Guard Services" and include the name of the prime respondent. Deliver the response to: City of Vernon Attention: Javier Valdez, Business &Account Supervisor 4305 Santa Fe Avenue Vernon, CA 90058 5. Responses are due on or before 5:00 p.m. on June 22, 2015. Late response will not be accepted. 6. A pre-meeting is scheduled for Thursday, June 4, 2015, at 10:00 a.m. in the Department of Gas & Electric, 4305 Santa Fe Avenue, CA 90058. Attendance is not mandatory. 7. Questions regarding the RFP should be sent solely via email to 0valdez ci.vernon.ca.us. Wednesday, June 17, 2015 on or before 5:00 p.m. is the deadline to submit any questions regarding the RFP. B. Cover Letter: All proposals shall include a cover letter which states that the proposal shall remain valid for a period of not less than ninety (90) days from the date of submittal. If the proposal contemplates the use of sub-contractors, the sub- contractors shall be identified in the cover letter. If the proposal is submitted by a business entity, the cover letter shall be signed by an officer authorized to contractually bind the business entity. With respect to the business entity, the cover letter shall also include: the identification of the business entity, including the name, address and telephone number of the business entity; and the name, title, address and telephone number of a contact person during the proposal evaluation period. - 6 - City of Vernon Unarmed Security Guard Services Request for Proposals C. Introduction: Present an introduction of the proposal and your understanding of the assignment and significant steps, methods and procedures to be employed by the proposer to ensure quality deliverables that can be delivered within the required time frames and your identified budget. D. General Scope of Work: Briefly summarize the scope of work as the proposer perceives or envisions it for each Service Area proposed- E. Work Plan: Present concepts for conducting the work plan and interrelationship of all products. Define the scope of each task including the depth and scope of analysis or research proposed. F. Fees and costs: Although an important aspect of consideration, the financial cost estimate will not be the sole justification for consideration. Negotiations may or may not be conducted with the proposer; therefore, the proposal submitted should contain the proposer's most favorable terms and conditions, since selection and award may be made without discussion with any firm. All prices should reflect "not to exceed" amounts per item. Proposer must offer services at a rate comparable to the rate proposer offers to other governmental entities for similar work. Offering a higher rate to the City than the comparable rate is grounds for disqualification of the Proposer. G. Ability of the Proposer to Perform: Provide a detailed description of the proposer and his/her/its qualifications, including names, titles, detailed professional resumes and past experience in similar work efforts/products of key personnel who will be working on the assignment. Provide a list of specific related work projects that have been completed by the proposer which are directly related to the assignment described in this RFP. Note the specific individuals who completed such project(s). Identify role and responsibility of each member of the project team_ Include the amount of time key personnel will be involved in the respective portions of the assignment. Respondents are encouraged to supply relevant examples of their professional product. Provide a list of references. The selected firm shall not subcontract any work under the RFP nor assign any work without the prior written consent of the City. H. Affidavit of Non-Collusion. Proposer must submit a completed and signed, "Affidavit of Non-Collusion." (Copy attached as Exhibit A). 7. ADDENDA, CHANGES, AND AMENDMENTS TO THIS SOLICITATION At any time prior to the due date for responses, the City may make changes, amendments, and addenda to this solicitation, including changing the date due to allow respondents time to address such changes. Addenda, changes, and amendments, if made, will be posted on the City's website (www.cityofvernon.org), which is deemed adequate notice. A proposer may make a request to the City's project coordinator to be placed on a list of persons to receive notice of any such addenda, changes, or amendments. The preferred manner of communications is via e-mail due to its -7- City of Vernon Unarmed Security Guard Services Request for Proposals timeliness. 8. CONDITIONS FOR RESPONSES TO RFP The following conditions apply to this RFP process: A. Nothing contained in this RFP shall create any contractual relationship between the respondent and the City. B. This RFP does not obligate the City to establish a list of service providers qualified as prime contractors, or award a contract to any respondent. The City reserves the right to amend or cancel this RFP without prior notice, at any time, at its sole discretion. C. The City shall not be liable for any expenses incurred by any individual or organization in connection with this RFP. D. No conversations or agreements with any officer, agent, or employee of the City shall affect or modify any terms of this RFP. Oral communications or any written/e-mail materials provided by any person other than designated contact staff of City shall not be considered binding. E. The City reserves the right, in its sole discretion, to accept or reject any or all Proposals without prior notice and to waive any minor irregularities or defects in a Proposal. The City reserves the right to seek clarification on a Proposal with any source. F. The dates, times, and sequence of events related to this RFP shall ultimately be determined by the City. The schedule shown above is subject to change, at the sole discretion of the City, although the City will attempt to follow it and, if it must be altered, will attempt to provide reasonable notice of the changes. G. Respondents shall not issue any news release pertaining to this RFP, or the City without prior written approval of the City. H. All submitted proposals and information included therein or attached thereto shall become public record upon delivery to the City Administrator's Office. 9. RIGHT BY THE CITY TO WITHDRAW THIS REQUEST The City may, at its sole discretion and for any reason whatsoever, withdraw this solicitation at any time. 10. LIVING WAGE ORDINANCE - 8 - City of Vernon Unarmed Security Guard Services Request for Proposals The selected consultant shall pay qualifying employees a wage of not less than $10.30 per hour with health benefits, or$11.55 per hour without health benefits. The consultant shall also provide qualifying employees at least twelve days off per year for sick leave, vacation or personnel necessity, and an additional ten days a year of uncompensated time for sick leave. There shall a prohibition on an employer retaliation against an employee's complaining to the City with regard to the employer's compliance with the living wage ordinance. Contractor, and any Subcontractor(s), shall comply with the City's Living Wage Ordinance. The current Living Wage Standards are set forth in Exhibit "D" of the standard form contract, attached hereto as Exhibit B- Upon the City's request, certified payroll records shall promptly be provided to the City. 11. STANDARD TERMS AND CONDITIONS Prior to the award of any work hereunder, City and proposer shall enter into the written contract attached hereto, for services, as an Exhibit B. Proposers responding to this RFP are strongly advised to review all the terms and conditions of the Contract. The term of the Contract shall not exceed three (3) years. - 9 - City of Vernon Unarmed Security Guard Services Request for Proposals EXHIBIT A AFFIDAVIT OF NON-COLLUSION - 70 - City of Vernon Unarmed Security Guard Services Request for Proposals EXHIBIT B STANDARD FORM CONTRACT - 11 - EXHIBIT B PROPOSAL 17 August2013 ,ti+51i��Rl1jf +!'��p5 Y ABSOLUTE DIMATIONAL SECURITY h1SZs; Q UNARMED SECURITY GUARD SERVICES REQUEST FOR PROPOSAL WP) .rY 4 City of Vernon Department of Gas & Electric Provide [_unarmed Security Guard Services As Required By Cith, of Vernon (Original 1 To: City of Vernon Attu: Mr. Javier Valdez,Business& Account Supervisor 4305 Santa Fe Avenue Vernon, CA 90058 From: Absolute International Security 861 South Oak Park Road, Covina, Ca 91724 (626) 858-7188 Lucy Lin,President llin. ,.absolutesecurityintl com June 22'h, 2015 This proposal contains proprietary and confidential information which is only intended for the party named. If you are not the named addressee,you are hereby notified that dissemination, duplication, or use of the disclosed information,in whole or in part,is strictly restricted. The aforementioned condition applies to all pages attached unless given written permission from Absolute International Security. WME MMMORL Mff ig �- MP all State Lic.: PPO 16302 TABLE OF CONTENTS L Corer Letter 11. Introduction A. Company Information... ......... ... ... ... ... .... ... --- —... --- ... ,-- ... 1-2 B. Organization Chart... ....,. ... C. Summary of Insurance... ... ...... ... ... ... ... ... ...... ...... ... ...... ...... ... 4 D. Training--- --- --- --- --- --- ---- ", . ... ... .., .._, „ ...... ......... ........... 5 E. Description of Equipment... ...... ... ... ......... ... ... ... ...... ... ...... ...... 6 III. General Scope of Work... ... ...... ... ... ... ... ... . 7-8 IV. Work Plan... ... ... ... ........................ ...... ... ... ... ... ... ... ... ... ..... 9-10 V. Fees and Costs A. Summary of Cost Proposal... ... ......... ... ...... ...... .. B. Specifications of Cost Proposal... ... ... ...... ... ......... ......... ............ 12 VI. Ability of the Proposer of Perform A. Key Personnel ... ... ... ... ... ... ...................... ......... ............... 13-14 B. Project Operations Team Experience............ ..... 15-16 C. Operations Chart... ... ... ... ...... ... ......... ...... ...... ......... ... ...... ... .. 17 D. Summary of Similar Experiences--- --- ------ ------ --- --- --- --- --- --- --- --- ---- 18-19 E. Current Business References... ......... ...... ... ... ... ...... ... ... ... ... ... ... 20 VII. Attachments A. Affidavit of Non-Collusion... ... ... ...... ... ... ... ... ...... ... ... ... ... ....... Attachment A B. Addendum 1... ... ......... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ......... ... Attachment B C. Addendum 2... ... ...... ... ... ... ... ... ... ... ... ... ... ... ... ... ...... ...... ... ... Attachment C D. Bid Q &A... ... ... ... ......... ......... ...... •-- ...--- ... ... ... ... --- ... ... --- ... Attachment D E. Private Patrol Operator... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... Attachment E F. Baton Training Facility Certificate... ... ......... ... ... ... ... ... ... ... ... .... Attachment E G. Firearms Training Facility Certificate... ...... ... ... ... ... ... ... ... ... ... ... Attachment E H. City of Covina Business License Certificate... ... ... ... ...... ... ...... ... Attachment F I. City of Los Angeles Tax Registration Certificate... ... ........ ... ... ... ... Attachment G J. Fictitious Business Name Statement... ... ... ... ... ... ...... ... ... ...... ...... Attachment H K. Certificate of Liability Insurance... ... ... ... ... ... ... ... ... ... ... ... .......... Attachment I L. Excess Liability...... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ..................... Attachment J M. Rating... ... ... ... ... ... ... ... ...... ... ... ... ... ..... ... ........--- ----- - - --- -- Attachment K N. Financial Stability Statement Attachment ,.. --- -. ... .. ...... ......... ..... Attachment M O. CALSAGA Membership Letter ... ... ... ... ... . ... ...... ... ..... ... ... ... . Attachment N P. Certificate of Membership for The Covina Chamber of Commerce .... Attachment O Q. Business Reference letter... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... Attachment P ABOLUTE MTERNATIONAL SECUMTY AIS Ti June 22th, 2015 Mr. Javier Valdez City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 Dear Mr. Javier Valdez: Thank you for the opportunity and privilege to join this bid and to introduce the Professional Security Services offered by Absolute Security International, Inc. (dba AIS). We would like to emphasize the priority we put on having the best possible executive management team for you. As President, I have worked in the private security industry for more than 25 years, specializing in various public contracts in the City of Los Angeles and in various other Cities spread throughout her suburbs. Our team also consists of Retired Pomona PD Lieutenant Mark Wane, who will serve as our Sr. Security Consultant and Retired Los Angeles Sheriff Department Mr. Robert Guy, who will serve as our Vice President of Operations. Combined they have extensive field experience covering about 29 years. Both Lt. Warm and Mr. Guy have been involved with security services for a variety projects since 2004 and Mr. Guy will serve as the project manager in-charge of this project throughout the awarded years. We have our own in-house Training Facility with the Coordinator and instructors who manage and supervise all training requirements mandated by the State of California as well as any additional training required by the client. We require our officers to have guard cards issued by the State of California Department of Consumer Affairs (DCA). AIS and our Training Coordinator are also state licensed and ready to train our security officers as needed in various curriculums required by the State and our clients. The missing part of the security services industry is not about the size and years of the business, but rather about personalization and customization of the services. Furthermore it is about the innovation - a dream behind the technology. What sets our company apart from others? What makes a business grow and prosper? It is how the executive management team thinks - the ways in which the business connects to its consumers. A business is not only supported by its ability to produce its products or services, but mainly by its ability to reach out to a broad yet individualized variety of consumers. A business should always stay focused on where its responsibility truly lies-to the customers. To adapt to today's economic trends, AIS will provide flexible and customizable solutions to meet your security and safety needs while also staying within your budget. We aim to provide the highest quality of professional and personalized security services, and to follow through with Proposal for Unarmed Security Guard Services for City of Vernon All information contained on this page is subject to the restrictions detailed on the footer of the first page. ABSOLVE SECUMTY < # 1L1 S w le unparalleled supervision and client support.Regardless of the time and urgency of the situation, you will always be able to reach somebody at AIS who will be able to assist you. The following are key personnel designated to this project: Contact Person Ms. Lucy Lin,President and QM E-mail: Ilin@absolutesecurityintl.com Telephone: (626) 858-7188, Ext. 101 Fax: (626) 858-2882 Mr. Robert Guy,VP of Operations E-mail: rguy@absolutesecurityintl.com Telephone: (626) 858-7188,Ext. 104 Fax: (626) 858-2882 Mr. Jerry Truman,Operations Consultant E-mail: jtrueman@absolutesecurityintl.com Telephone: (626) 858-7188,Ext. 106 Fax: (626) 858-2882 Mr. Mark Warm, Senior Security Consultant E-mail: mwarm@absolutesecurityintl.com Telephone: (626) 858-7188, Ext. 105 Fax: (626) 858-2882 Mr. Ronald Frost,Operations Manager/Supervisions E-mail: rfrost@absolutesecurityintl.com Telephone: (626) 858-7188, Ext. 103 Mr. Nick Marquez, Training Coordinator E-mail: nmarquez@absolutesecurityintl.com Telephone: (626) 858-7188,Ext. 107 AIS is an Equal Opportunity Employer as well as a certified Minority and Woman Owned & Disadvantaged Business_ Our personnel has diverse culture backgrounds and speaks a multitude of different languages, so we will always have somebody tailored to meet you halfway. We value this opportunity and hope that you will find our commitment to client support exceptional and our pricing competitive and allow us to serve you. We are confident that our security team will provide the knowledge and expertise in the field of safety and security to meet your contract specifications. Proposal for Unarmed Security Guard Services for City of Vernon All information contained on this page is subject to the restrictions detailed on the footer of the first page. k AVISOLUTE MTERMTIONAL SECUMTYUV P�Mjej% x"R lll5 riF� I would like to acknowledge that the information provided in this proposal is true, accurate,and current. 1. AIS hereby confirms, we fully accept the terms and conditions of the Standard Form Contract. (Page 11) 2. MS hereby confirms, we fully comply with the City of Vernon Living.Wage Ordinance. (Page 8-9) 3. AIS hereby confirms that this Bid Proposal shall remain valid for a period of not less than ninety(90)days from the date of submittal. 4. AIS hereby confirms that Operations Team who work in this project will not be replaced in the term of three contract years. 5. AIS hereby confirms to have received Addendum 1, Addendum 2 and Bid 4&A as attached. 6. AIS hereby confirms,there are NO subcontractor involved in this project. 7. AIS hereby confirms, there are NO Exceptions/Deviations from This Bid of Unarmed Security Guard Services for City of Vernon,Department of Gas&Electric. Should you have any questions or concerns in this proposal, please do not hesitate to contact me directly. Thank you! Best regards, Absolute Security International,Inc. dba Absolute International Security (ALS) 861 S. Oak Park Road, Covina, CA 91724 (626) 858-7188 — --� Lucy J. Lin, President& QM Proposal for Unarmed Security Guard Services for City of Vernon All information contained on this page is subject to the restrictions detailed on the footer of the first page. ABSOLUTE ATERNATIONAL SECUMTY t �`` r ' COMPANY INFORMATION "Your Protection is Our Mission. ''our Safetv is Our Goal!" COMPANY BACKGROUND The Owner and President of Absolute International Security, Inc., Lucy Lin, founded the entire company on this single statement. When Ms. Lin first started out in the security industry almost 25 years ago, she rapidly rose to and maintained a corporate level position in a company lacking such a mission statement. She believes that, unlike the previous company, AIS will continue to strive forward, giving the care and service that customers need to uphold its mission statement that it was founded on. ABSOLUTE SECURITY INTERNATIONAL, INC. (AIS) was established in the City of Covina, California as a private security service company by an executive team with 75 years of experience in security services. AIS headquarters currently stand at: 861 S. Oak Park Road Covina, Ca 91724 Telephone: 626-858-7188 Toil Free: 626-969-7188 Fax: 626-858-2882 Web Page: wHne.absolutesecurin•intl.cont AIS is a fully insured company with A+ insurance and a licensed Private Patrol Operator with the Bureau of Security and Investigation Services, Department of Consumer Affairs in Sacramental, California. Our business provides private security services in both armed and unarmed security officers, stationary and vehicle patrols and for security consulting, loss prevention, security for work place violence, threat assessment, crime, and fraud investigation. All our security officers receive the necessary state-mandated requirements by our in- house licensed training facility. SERVICES PROVIDED At AIS, our management team has more than 75 years of combined experience in the private security industry, and can provide the following services: • Security guard services .c.',;: Proposal for Unarmed Security Guard Services for City of Vernon All information contained on this page is subject to the restrictions detailed on the footer of the first page. 1 y&Z ►r rM� ABSOLUTE SECUMTY nrs - • Dignitary & personal protection • Government projects - • • Security & safety training " • Security p for workplace violence t. • Threat Assessmenti*t • Crime and fraud investigations • Special events • Mediation & conciliation AIS provides multilevel security services for individuals and businesses of all sizes including, but not limited to construction sites, warehouses, manufacturers, schools, banks, shopping centers, retail chain stores, supermarkets, residential & apartment complexes, restaurants, and parking facilities. Our Officers are our most important asset because they represent AIS and you,the client. AIS management,therefore, considers many different components when hiring a new security officer. We will only recruit applicants who we deem worthy of wearing our badge and uniform. We seek to hire personnel that not only have experience,but also "fit the peg". Clients are very specific towards the personnel they want to interact with on a day to day basis. If the applicant we are considering for a position looks good on paper and meets or surpasses our standards then, after our initial verbal interview, we as a team will discuss the most advantageous placement within the facilities or assignment in the locations that we serve. Our commitment to quality recruiting and hiring will ensure less turnover for you, our client. We will always take your specific needs into consideration first and foremost. All officers are required to be up to date with all Local or State mandated requirements. Our system will promptly notify our Officers when they need to take care of any issues. AIS will provide supervision to ensure that all work is performed in accordance with specifications, at no additional cost 100% Client Satisfaction. Our clients will have a 24 Hour Access to our Communications Dispatch Center. We provide a Toll Free number (866) 969-7188 where a live body will always be available to answer any question or to assist in contacting the right person for resolving any concern, regardless of how large or small the issue may seem. We are always ready to serve our clients should the need arise. AIS Licensed Training Facility- and our in-house State Licensed Training Coordinator ensures that our assigned security officers will receive the necessary training specified by our clients. Our Training Coordinator, with over 25 years of experience in security services, oversees AIS's training functions and makes certain that the company is in compliance with California State Law and BSIS regulations. Proposal for Unarmed Security Guard Services for City of Vernon All information contained on this page is subject to the restrictions detailed on the footer of the first page. i 1 I I I � w - iA- ri t 1 # Do e-1 61 01 LD 1 # 4} 3 C C = cam}w 00 _ ` .T U y� y -y.. ASS •-� F w c'i r4 L L+ 1 r.a 1 < w F- � � � o00 _ 00 N wy N V 00 R O Uri 37 cO N] V cn alit y } a v o c w E ICI °� ' a IL LL Y p o0 00 ,r,-, , ii nmi- i. A 00 �wkDi. tibkD = ei cr ,� Lz t o Mee, 1 I W t } y ABSOLUTE MEMATIONAL SE(UMTY W26o�_ SUMMARY OF INSURANCE Absolute International Security Inc. maintains a comprehensive, specific insurance program for its various private security contracts. This coverage includes Commercial General Liability, Commercial Auto, Workers Compensation and Employer Liability. Commercial General Liability: ■ $1,000,000 combined single limit for bodily injury and property damage on an "occurrence"basis. ■ Includes Completed Operations, Professional Liability(i.e., errors & omissions),theft extension, and lost key coverage. ■ $1,000,000 personal and advertising injury of any one person or organization; ■ Includes consequential bodily injury arising out of false arrest, malicious prosecution, slander and libel, and violation of right of privacy. ■ $2,000,000 Aggregate. Umbrella Liability: ■ *$1,000,000 Each Occurrence ■ *$1,000,000 Aggregate Workers' Compensation and Employer's Liability: ■ Workers' Compensation—Statutory ■ Employer's Liability - $1,000,000 Bodily Injury by Accident - $1,000,000 Bodily Injury by Disease Commercial Auto Liability: ■ $1,000,000 any one accident or loss ■ Includes hired and non-owned autos Excess Insurance: For clients that require an extra level of insurance due to high risk, we can procure a per project "excess" policy that is in addition to the coverage of an underlying policy category (i.e. general liability, auto, crime). The cost of such a policy must be specially bid with disclosure of the name of the client, the type of business protected, the number of security officers to be assigned, the estimated annual payroll and the description of the special risk that needs to be insured. This type of policy is fully paid at its inception and covers only the balance of the underlying year. For contracts with less than 24/7 coverage, such extra insurance can be prohibitively costly. In accordance to our risk management and loss prevention efforts, we have anticipated and continue to experience favorable claims that are to the benefit of both AIS and our clients. AIS will also provide updates on our insurance coverage throughout the term of the Contract to ensure that there is no break in coverage during the period of the Contract. We will provide a thirty(30) day written notice prior to the cancellation or changes of any insurance policy. We are aware that the lack of evidence regarding coverage is grounds for termination for breach of Contract. Proposal for Unarmed Security Guard Services for City of Vernon 4 All information contained on this page is subject to the restrictions detailed on the tooter of the first page. ty't'g ABSOLUTE MERNATIONAL SECURITY AiS $P111-i TRAINING Because we have a State licensed Training Facility and a State licensed Trainer, we handle our own training in-house by running a full training facility at our corporate headquarters, and we have a State licensed on-line training system. Training will always be offered to our Officers to increase their security awareness and the quality of our service to our clients. • Training Coordinator, Nick Marquez is a State licensed Trainer for both on-site and on-line training. He is responsible for all aspects of corporate training policies, objectives, and initiatives. Mr. Marquez directs the design, planning, and implementation of corporate training programs and procedures. He plans and directs new training techniques and suggests enhancements to existing training programs and ensures that the training programs meet federal, state, and local regulations- In addition, Mr. Marquez measures the impact of programs and learning activities and is familiar with a variety of the field's concepts, practices, and procedures by relying on extensive experience and his own judgment. Mr. Marquez has approximately 10 years of military and security experiences. Mr. Nick Marquez's contact information as indicated below: Telephone. (626) 858-7188,Ext. 107 E-mail: nmarquez@absolutesecurityintl.com AIS's training curriculum will include the following: 1) School security guard training SB1626 2) Training for each security officer for their specific assigned duties at their job location 3) Observation documentation, report writing, and incident notification 4) Communication Procedures 5) Chain of Command 6) Customer Service 7) Sexual Harassment 8) Recurrent BSIS state training 9) Exposed weapons on an as needed basis 10)Baton and Chemical Defense 11)Crime Prevention,Patron Protection and Security Awareness 12)Emergency Situations 13)CPR,First-Aid, and Defibrillators 14)California Business and Professions Code, Division 3, Chapter 11.5 as they pertain to Private Security Services 15)OSHA Regulations 16)Key/Security Alarm Control 17)Evidence and Found Property 18)Disciplinary Policy Proposal for Unarmed Security Guard Services for City of Vernon 5 All information contained on this page is subject to the restrictions detailed on the footer of the first page. �.U�s�rlfi �; } ABSOLUTE MERNATIONALSECUMTY pis s � .* DESCRIPTION OF EQUIPMENT Company Marked Patrol Vehicle AIS will provide vehicle to do the patrol service. AIS Field Supervisor will make random visits to locations within the City of Vernon jobsites in a clearly marked security vehicle with NO additional charge. This will enhance the current security visibility as well as increase the awareness of on-duty officers. Marked vehicle will be equipped with the following equipment: • Heavy duty/rechargeable flashlight - • Traffic cones • Flares • Yellow scene management("banner guard" type) tape • First aid kit • Blanket • Fire extinguisher Tools Reporting Documents AIS will provide the following tools for AIS clearly understands and will submit all Security Officers while on duty: required reports to City of Vernon • Name tags accordingly, including the following: • 2-way radios • Cellular phone with adequate battery to 1. Officer's Daily Report maintain communication 2. Guard Sign-in/Sign-out Sheet • Flashlights with spare batteries 3. Incident Report • Sam Brown equipment belt 4. Supervisor's Daily Report • Marked Uniforms 5. Supervisors Follow-up Report • Foul Weather Gear, Jackets,Hats, Rain 6. Visitor Log In/Out Sheets Coats (when appropriate) 7. Fire Watch Forms • Log Book&Pens, Black and Red ink, 8. Bomb Threat Management& Response Form highlighters 9. Emergency Action Plan Form • The telephone numbers for emergency 10 parking Violation Warnings services and the emergency telephone 11. Patrol Tags number for the Company • A copy of AIS company rules and operating procedures (AIS will provide maintain and replacement the above equipment if in need of replacements) Proposal for Unarmed Security Guard Services for City of Vernon b All information contained on this page is subject to the restrictions detailed on the footer of the first page. } ABSOLUTE MTEMATIOML SECUUTY AtS GENERNAL SCOPE OF WORK - 77_ , Unlike other companies who have a repetitive, stenciled format for servicing new clients, we custom design our service programs so we are confident that we will be able to meet any specifications from the City of Vernon. Our New Service Team is comprised of the Business Development, Administration, Accounting, Human Resources, Logistics, Operations, Risk Management, and Training departments. Together we create a custom tailored program that covers everything from specific training regiments to having the lowest possible billing/pay rates to uniform type/color. The New Security Program is has the best results when we are allowed a few weeks to perfect the minute aspects of the program. Hiring the right personnel with the proper training, ordering custom uniforms, and developing a solid schedule can take time. The best-case scenario would be if AIS had a four-week allowance to develop and implement our program. Our preference will always be to have the earliest notice as possible to ensure that we cover every base and that the client will be completely satisfied. In some cases, however, the client may not be able to provide us with a four weeks' notice. AIS has bad experience putting together highly effective Security Programs under pressure and with significant time restraints. We have been hired to start the very weekend of the same week and without the client's full understanding of what it takes to put a program together, we can proudly say that we managed to develop a highly effective Security Program in a matter of days. After thirty days of service, we will seek the opinion of the client's Project Manager or designee and make any necessary changes or adjustments to maintain client satisfaction. After sixty days, we will request your input again to ensure that we are all on the same page. After sixty days, we will continue to pay our clients visits on a bi-monthly or weekly basis, if requested by the client. We do this to discuss any crime trends or security concerns in your area that either parry may want to address. If our service, in the client's opinion, after 90-120 Days, is nothing less than excellent, we will kindly ask for a letter of recommendation. We will only ask if the client agrees that we have provided such services and have deemed us worthy of such an honor. Proposal for Unarmed Security Guard Services for City of Vernon 7 All information contained on this page is subject to the restrictions detailed on the footer of the first page. -w� } ABSOLUTE ATERNATIOML SECUMTY AIN AIS complies with the Scope of Service of Unarmed Security Guard Services that (Section 4, page 3) provided by the City of Vernon as the following: i AIS shall provide full-trained uniformed security guard fully meet the qualifications in section 5 page 3-5. AIS shall provide Security Officer with cell phone on jobsites. + AIS shall provide the tools and equipment required by City of Vernon (Section 5, page4). • AIS shall provide patrol vehicle. • AIS shall provide regular and monitoring of Station"A"Plant and Soto Yard- AIS shall observe and report any unacceptable behavior to the (VG&E) Station "A" Control Room Dispatch(CRD)and/or Vernon Police department(VPD). + AIS shall escort any individual from premises upon the direction of City staff and call police when necessary. • AIS shall check the exterior of the buildings for vandalism and other unusual conditions. • AIS shall report security and public safety problems to VPD immediately. • AIS shall report security problems to Station "A"CRD and/or VPD. • AIS shall complete, sign and provide a written Daily Activity Report (DAR) of all incidents and occurrences to the City designee at the end of each day's shift. • AIS shall report damage problems to the City designee and Operations Manager. AIS fully complies with Security Guard Requirements that(Section 5, page 3) provided by the City of Vernon as the following: • AIS security officer shall be a legal resident of the United States. • AIS security officer shall maintain a current State of California guard card and maintain appropriate certifications for safety equipment. • AIS security officer shall be pleasant and courteous to clients and staff at all times. • AIS security officer shall be sensitive to the diversity of patrons and staff. • AIS security officer shall be physically and emotionally capable of performing assigned tasks. • AIS security officer shall effectively communicate and follow written and oral instructions in English. • AIS security officer shall report to the site on or before the designated shift start time ready to begin work. • AIS security officer shall check-in with his/her designee prior to each shift for any updates and/or additional duties. • AIS security officer shall request the assistance of VPD if any individual becomes abusive or unmanageable. • AIS shall ensure that Station A CDR and VPD have the on-duty security guard's cell phone number. • AIS shall prepare a Daily Activity Report (DAR) recording all patrols, incidents, actions, and other pertinent data for the City designee- • AIS security officer shall attend mandatory City trainings that are paid for by the City. Proposal for Unarmed Security Guard Services for City of Vernon g All information contained on this page is subject to the restrictions detailed on the footer of the first page. rj�lwjv' ABSOLUTE MEMATIONAL SECRITY Ir,-�.Z' WORK PLAN Your AIS Security Officer(s)will always arrive 15 minutes early to ensure they are serving your location(s) "On-Time". All Officers that serve you will be selected based on not only service qualifications,but also special preferences from you, our client. We have an extensive database of properly licensed Officers that live within close proximity of your location(s)and can serve you without having to drive long distances. We will also be able to provide additional personnel for on-call requests. AIS Operations Management is comprised of former Police Officers and Military Veterans. They have developed disciplined skills and qualities that are highly effective when managing a Security Team. Together. they can formulate how we can best serve your facility to your satisfaction. In the rare event that the Officers assigned to your facility or a member of our corporate management were to behave in a less than professional manner,we will conduct an immediate investigation to determine any underlying causes and propose and implement the best corrective action to continue fulfilling our security service duties that we were hired to perform. Security Supervisors will provide random site visits to ensure all specifications listed in the Contract and per your instructions are performed accordingly and in a timely fashion. Our Field Supervisor's monitoring system includes filing out a check off sheet to ensure the on-site Officer is meeting the standards required by the client and AIS. Random drug and alcohol testing is performed on all assigned Officers to ensure that he/she is able to effectively perform his/her duties. These test dates and times are unannounced and are reasonably spread throughout the year. These rules are clearly written in our company Employee Handbook, given to each Officer at the beginning of employment. AIS conducts a specific plan for each Jobsite as following: Station A (Power Plant): • AIS will provide unarmed uniformed security officer 24 hours-a-day, 7 days-a-week (including Holidays) at Station "A" (Power Plant) located at 4990 Seville St, City of Vernon. • Security Officer will be posted at the City of Vernon, Power Plant, Station"A" guard shack, Soto St. entry gate. • Security Officer will provide a variety of services including, but not limited to: entry and egress access control through gate. Log in such entries. Notify Control Room Dispatch (CRD) of visitor/deliveries. Once an hour, Security Officer will provide foot patrol along the inside of the exterior fence between the Soto gate and the Seville St. entrance. • Security Officer is NOT to enter the interior fence area of the power plant. Prior to leaving and upon returning the Soto entry gate area, Security Officer is to notify CRD. • If any unusual events occur Security Officer shall notify CRD of incident. Proposal for Unarmed Security Guard Services for City of Vernon 9 All information contained on this page is subject to the restrictions detailed on the footer of the first page. hol ABSOLUTE MTERNATIOML SECUMTY - • If an incident occurs the Security Officer shall complete an incident report. • Security Officer shall complete a Daily Activity Report(DAR). Soto Yard: • AIS shall provide unarmed uniformed security officer, Monday-Thursday, 5:30 p.m. to 5:30 a.m., and 24 hours-a-day coverage from 5:30 a.m. Friday to 5:30 a.m. Monday. This Security Officer shall be assigned to the Soto Yard located at 4700 Soto St., City of Vernon. • Security Officer shall patrol the Soto Yard storage area, ensuring area is secured. • Once every two (2)hours, security officer shall patrol (AIS provided marked patrol vehicle), (S)electrical sub-stations from the exterior fence line. • Security Officer shall NOT enter the sub-stations_ • Security patrols shall be random, in no discernible order_ • If any unusual events occur Security Officer shall notify CRD and/or Vernon Police Department(VPD). • If an incident occurs the Security Officer shall complete an incident report. • Security Officer shall complete a Daily Activity Report(DAR). We have 24-hour AIS Communication Dispatch Center for clients to contact us as needed. AIS provides call-in system and sign-in sheet for security officers to check-in and check-out. For walk/vehicle patrol service, we have electronic guard monitoring system for security officers to clock- in and clock-out at each location by using their reader to scan the RFOD tags. We have in-house professional payroll system and billing system to conduct payroll and invoice bi-weekly. There will be a POST ORDER& EMERGENCY EVACUATION PLAN posted at each jobsite when the contract commences. Each security officer designated to work at the jobsite will also receive an oral presentation through our Training Section. When an incident occurs that requires detailed description of a particular event, for example,the Fire Department was notified because someone passed out while experiencing chest pains on client property, an Incident Report (I/R)must be filled out with extreme detail. All reports are turned in that day to the Field Supervisor who then reviews and turns them over to the Operations Manager. These reports get scrutinized for legibility and content by the Operations Manager and are finally are brought to the attention of the AIS Project Manager. If at any time, an Officer or member of our Management personnel does not meet with the qualifications or specifications put forward by City of Vernon, we will expedite the removal of the person identified from your facilities. We are very dedicated in accommodating our clients and seeking a match for our client that is favorable for all parties. We are aware that, sometimes, certain character traits may clash with clients or locations, so we will always be careful and give our best efforts to hire quality personnel that the client expects us to provide. Proposal for Unarmed Security Guard Services for City of Vernon 10 All information contained on this page is subject to the restrictions detailed on the footer of the first page. C m m m m m v Q c O 00 m m h hO W ry ry b W b N p T p�p w � � Vw M sn w �n 14 v. COL Q P P m m m m b P P P P P 14 N n N M1 n Z q � 0 0 0 I� M1 n V Y P P P 00 C v vtA +r•i/F N �1 m m m N N O C t/F lo � m m m M1 h M1 h M1 q T d vmi umi umi v00i vmi v°°i vmi vmi i •+ z E x z d a i C i m • +n " E' cv c E Y — y o u [ Rl a H o c N � 0 0 0 0 PJ h y w E o o �" � z o � E c a c d Y y u i a a c W u a a P v P Q t 0 = 0 iv +O- `o v vc E o p � a�r ¢ e ¢ cl a, ado ap L^ a a oa eo m m a s a O u c v c vi o .E m ie ' a ' _ ~ C ~ c Z Y a 2o �+ p E a D a d n v L 7 r J Z 7 v �o m m m m m Q• j C o C Ep O U O 9 — E s w n u c g c LL o v c } o E C a i u liJ w O C L C E C j o o 0 v 8 . G o Wv a m E c ° o > " U Z. m a Y `Y `Y o g a y E c v u L ,r o 0 0 a o o S 0 d p N c p a d p m Q •—' m 0 } Y 21 M N Y i M ,.pj vj C G E .L N A O Ul tb C Y z m E r C u r d L a Y n % ,may a Y E a N Ta 3 m Y c > v p E ai c m O O E A P O .--i a LL N N mu N O m Y v�l a N !n A E q E W J 6 C 6 O v E Y O N Y O Y O f0 U a M _c 7 V 'F o` � � 04 = 0 Z g x x r `Y e r Y o r r r V a a a a ur C) �� o � � o` LL � � � s is V) a = C CRY Of Vernon 2015 - 2016 Base Year - 1 DIRECT LABOR COST Unarmed Guard Hourly Pay Rate $ 11.55 Min. wage increase as of 1/01/2016 included in base pay INDIRECT LABOR COST Unarmed Guard Pavroll Taxes $ 1.16 Workers Compensation Insurance $ 0.98 General Liabilitv Insurance $ 0.75 Uniform Expense $ 0-08 Vacation $ 0.06 Pre Emolovment Background& Drug Testing $ 0.03 Training $ 0.23 Non Sheduled Overtime $ 0.32 SUBTOTAL INDIRECT LABOR COST: $ 3.62 OTHER COST Unarmed Guard Overhead $ 0.17 Gross Profit $ 1.10 Overtime Factor $ 0.12 Markup $ 0.03 Other: (Describe) $ SUBTOTAL OTHER COST: 11s 1.41 TOTAL WAGE RATE(AND ALL DIRECT, INDIRECT, OTHER COSTS) $ 16-56 VEHICLE(S)AND EQUIPMENT Item Hourly Cost Vehicles $ 1.60 Bicycle NIA Golf Cart NIA Cell Phone NIA Other Equipment NIA TOTAL COST Is 1.60 Unarmed Guard Straight Time Bill Rate 16.56 (The sum of all line items factors hourly rate. This is the amount that the City will be billed under normal circumstances for every hour of services provided by the contractor.) Holiday Bill Rate 16.58 (The above is the pre-arranged rate for any work performed outside of the normal scope hours, including holidays, extra coverage requirements, and short-tern notice requirements.) 12 "74kR%U ABSOLUTE NIERNATION SECUMTY x[s U91�1 KEY PERSON'!EL AIS takes pride in our highly experienced management team. The president has worked in the private security industry for more than 20 years. Before the establishment of AIS, She served as the Chief Administrative Officer for a former business entity. Through the years, she was able to greatly increase the firm's revenue and in turn, increase the number of guards to the hundreds. She secured over 90% of the contracts for this business entity. At the time, Ms. Lin successfully pursued and obtained security service contracts with the Los Angeles World Airports and the Community Redevelopment Agency of Los Angeles. • President and Qualified Manager graduated from the Executive Masters of Business Administration program at Claremont College. She has over 20 years of experience working with private security firms. She specializes in working with government contracts and developing cost effective custom security programs. Ms. Lin is an expert in Executive management and Business Administrative management. She has extensive experience in Finances, Marketing, and Operation, as well as Human Resource. Ms. Lin is also a certified mediator of the City of Los Angeles' City Attorney's Office and has vast experience in resolving difficult business disputes. All major decisions regarding AIS are handled and ultimately approved by Ms. Lin. Her Chinese background and bilingual ability make her effectively develop the Asian market. She is well liked by all of her employees and customers because she is an honest and caring individual who always makes herself available to listen to any concerns her staff may have. She has an open door policy and always sheds a positive light on any issue that crosses her table. • Legal General Counsel for absolute International Security has over 20 years of experience practicing law. As an Attorney he has successfully represented various corporations as well as individual clients in their personal legal matters. Our Legal Department is experienced in dealing with all types of contracts, corporate matters and government filing requirements. Our Legal Counsel also ensures we are always in compliance with Federal, State and Local requirements. The counsel always makes himself available should anyone on staff have any legal concerns or need documents approved including company Policies and Procedures. All contracts are reviewed and approved by our legal administrator. • rice President of Operations is at the helm of the Overall operations services at AIS. He has over 27 years of combined management and field experience in law enforcement, corporate/private security, and administration. He maintained the highest performance standards within a diverse range of administrative functions, serving as the Director of Security for many large private security organizations. His extensive experiences in both Law Enforcement and the Security Field qualifies him for the position of VP of Operations at AIS who is mainly in-charge of the Operations Department, but oversees a variety of additional support functions including Human Resources, Marketing/Branding, Recruiting, Risk Management, Business Development, Logistics, and the Guard Services Training Program. Proposal for Unarmed Security Guard Services for City of Vernon 13 All information contained on this page is subject to the restrictions detailed on the footer of the first page. a ABSOLUTE MEMATIONAL SECUMTY + Senior Security Consultant plays an essential role in advising the Operation Management team at AIS. He is a retired Police Lieutenant from the Pomona Police Department. He has over 29 years of law enforcement experience and has earned numerous certificates from the California Police Officer Standard and Training (POST). His experience within the police department includes patrol officer, investigations, internal affairs, supervision and organizational management. As a Lieutenant, he served as area commander, Administrative Services Lieutenant and Emergency Disaster Manager. This is where he developed strong leadership and project management skills. At AIS, he is responsible for consulting on all security projects, overseeing our Training Program, and providing leadership within our organization. He strives to maintain a high quality of service for our clients through his vast experience, professional management style, and sound advice. • Operations Consultant oversees the entire operations project and has over 30 years of combined law enforcement and security management experience. He recently retired from a long career with the Los Angeles Sheriffs' Department where he worked the Gang Unit, Narcotics, Vice, Forgery/Fraud and retired from the Special Details Unit that handled Murder for Hire and Kidnapping for Ransom. During his work in law enforcement he became involved with private security and for ten years afterwards, he worked several security details providing personal security for VIP's in Southern California. He was specifically chosen by the owners and investors of AIS to provide Operations Department consulting service, not only for his experience in law enforcement and security, but also because of his character. He treats everyone with respect by talking directly to them, not down at them. He is never condescending and will always take the time to listen to the ideas of others. Human Resources/.administration is at the helm of the Overall Administration in AIS. Her duties include, but are not limited to finances, human resources, logistical maintenance and other general services in the company. Her generous personality brings this company into a more family-oriented working environment. She has over 25 years of experiences working in HR, management, and accounting for the private sector, which allow for highly effective cross team interactions that help AIS management to operate at a more organized and professional level. « Training Coordinator is responsible for all aspects of corporate training policies, objectives, and initiatives. He directs the design, planning, and implementation of any new corporate training programs and procedures while also suggesting enhancements to the AIS's current training program. His experiences ensure the training programs meet federal, state, and local regulations. His duties include measuring the impact of programs and learning activities and being familiar with a variety of the field's concepts, practices, and procedures_ He accomplishes this by relying on his extensive experience and judgment from over 10 years of security work. Because of the broad scope of his work, a wide degree of creativity and latitude is expected from our own licensed training sector. Proposal for Unarmed Security Guard Services for City of Vernon 14 All information contained on this page is subject to the restrictions detailed on the Tooter of the fast page. }OkAVILIVABSOLUTE FERNATIONAL SECURITY !P- ULV0 PROJECT OPERNTIONS TEAM EXPERIENCE • Vice President of Operations, Robert Guy is at the helm of the Overall operations services at AIS. He has over 27 years of combined management and field experience in law enforcement, corporate/private security, and administration. He maintained the highest performance standards within a diverse range of administrative functions, serving as the Director of Security for many large private security organizations. His extensive experiences in both Law Enforcement and the Security Field qualifies him for the position of VP of Operations at AIS who is mainly in-charge of the Operations Department, but oversees a variety of additional support functions including Human Resources, Marketing/Branding, Recruiting, Risk Management, Business Development, Logistics, and the Guard Services Training Program. Mr. Robert Guy is assigned as the project manager for this project— Unarmed Security Guard Patrol Services for the City of Vernon. • Senior Security Consultant, Mark Warm plays an essential role in advising the Operation Management team at AIS. He is a retired Police Lieutenant from the Pomona Police Department. He has over 29 years of law enforcement experience and has earned numerous certificates from the California Police Officer Standard and Training (POST). His experience within the police department includes patrol officer, investigations, internal affairs, supervision and organizational management. As a Lieutenant, he served as area commander, Administrative Services Lieutenant and Emergency Disaster Manager_ This is where he developed strong leadership and project management skills. At AIS, he is responsible for consulting on all security projects, overseeing our Training Program, and providing leadership within our organization. He strives to maintain a high quality of service for our clients through his vast experience, professional management style, and sound advice. • Operations Consultant, Jerry Trueman oversees the entire operations project and has over 30 years of combined law enforcement and security management experience. He recently retired from a long career with the Los Angeles Sheriffs' Department where he worked the Gang Unit, Narcotics, Vice, Forgery/Fraud and retired from the Special Details Unit that handled Murder for Hire and Kidnapping for Ransom. During his work in law enforcement Mr. Trueman became involved with private security and for ten years afterwards, he worked several security details providing personal security for VIP's in Southern California. Mr. Trueman was specifically chosen by the owners and investors of AIS to provide Operations Department consulting service not only for his experience in law enforcement and security, but also because of his character. He treats everyone with respect by talking directly to them, not down at them. He is never condescending and will always take the time to listen to the ideas of others. • Operations Manager, Ronald Frost, works directly with our V.P. of Operations. In 1988, Mr. Frost earned his Bachelor's Degree in Criminal Justice at Cal State University. His 20 years of experience in Logistics as a Broker/Break Bulk Supervisor allowed him to work closely with the U.S. Customs and prestigious clients such as Osh Kosh, Levi Straus, Nike, Magellan and Louis Vuitton, just to name a few. His many years in Proposal for Unarmed Security Guard Services for City of Vernon 15 All information contained on this page is subject to the restrictions detailed on the footer of the first page. OUT KrLv? i, SECUMTY �ABSOLUR MERNATIONSAL AIS ...- J41S: Logistics has earned him a vast experience pool through managing many personnel importing products from all over the world. He personally handles daytime Field Supervision as well as Scheduling of all Personnel. He ensures all posts are filled and clients are never left wondering why an Officer did not show up for work. Mr. Frost makes certain any issues pertaining to customer service are addressed. Mr. Frost personally interviews all incoming personnel • Human Resource/Administration, Val Martinez is at the helm of the Overall Administration in AIS. Her duties include, but are not limited to human resources, logistical maintenance and other general services in the company. She has over 25 years of experiences working in HR, management, and accounting for the private sector. Her generous personality brings the company a more family orientated working environment. Her solid experiences in HR make AIS's administration more organized and professional. • Training Coordinator, Nick Marquez is responsible for all aspects of corporate training policies, objectives, and initiatives. Mr. Marquez directs the design, planning, and implementation of corporate training programs and procedures. He plans and directs new training techniques and suggests enhancements to existing training programs and ensures that the training programs meet federal, state, and local regulations. In addition, Mr. Marquez measures the impact of programs and learning activities and is familiar with a variety of the field's concepts, practices, and procedures by relying on extensive experience and his own judgment. Mr. Marquez has approximately 10 years of military and security experiences. Operations Assistant, Adrienne 011oqui. Ms. 011oqui is bi-lingual in both Spanish and English. She attended Cerritos College and graduated with her Associates Degree in Accounting. Her many years of experience working with Security Officers and Clients has helped her identify qualified incoming personnel. Any issues pertaining to new applicants, hiring, training and payroll are handled by Ms. 011oqui. She works closely with our V.P. of Operations and Operations Manager in scheduling matters. She plays a vital part in connecting all the tethers of Operations, through her, to the rest of the company. * Finance/Accounting, Lisa Phan, Ms. Phan speaks Cantonese and English Fluently. She attended Cal Poly Pomona and Majored in Business Administration. She worked at ERS Security for 9 years before joining the AIS team. She oversees the accounting department including the design of an organizational structure adequate for achieving the department's goals and objectives. She handles all periodic financial reports, bank reconciliations, corporate annual report, and controls all cash flow for the company- Also, she is the Accounts Receivable and partial Accounts payable that makes her became the "gate keeper"of our company. * Executive Assistant, Tiffany Li, Ms. Li obtained her master degree at University of Dayton in Communication. She had business administration experiences while in China and US. Ms. Li has increased her awareness in being very specific when preparing any pre-approved contracts or pre-approved amendments. She also plays a vital part in working closely with Operations and Accounting and has an accurate understanding on the daily events that require attention. Proposal for Unarmed Security Guard Services for City of Vernon 16 All information contained on this page is subject to the restrictions detailed on the footer of the first page. C U � zoo > o � co co I CN co 3b F N W a. � N o w O co i ° a b c� pG 7 a {� Z = Z >, U tars pW W Z Q z ." a sti OQ ,* 2ad � �= �� unt ;rA ate, 5 �D �, V] o E C O N •= �00 > � c w � 03 o2y U o`o � o �� O � o OE" � U °�° � � ai Q •„ ¢ 5 °o U Ewa { A Erb WO ° ¢ a°C v U O co L=� o °r° �7 vco Ln co � N o c �+ d g vl� I M y r-j O Q V � O G � 17 ig ABSOLUTE MTERNATIONAL SECUMTY JLlfi � �LIS. S17 NI-MARY OF SIMILAR EXPERIENCES What sets Absolute Security International, Inc. (AIS) apart from other security companies is the higher standards the company holds our officers to. The commonality between AIS and other security companies stops at having security guards. Our higher expectations and rigorous screening process allow us to isolate the cream of the crop. Furthermore, we supply additional direct supervision in the field to allow our clients to rest assured that your facilities/locations are being protected_ We require our officers to maintain a professional demeanor at all times. An officer's conduct is crucial in representing AIS and more importantly, you, our client. As such, we put very high emphasis on finding the right placement of each and every security officer to the guarantee the success of the operation. These are only a brief highlight of how our qualifications differ from other competitors. Here are the clients that we are currently providing similar services for: Citv of Covina Metrolink: Our primary responsibilities to the City of Covina Metrolink station is to provision customer service to all rail patrons by providing the visual presence of a professional, uniformed security force. This also serves to deter criminal activity at and threats to the Metrolink system and its patrons, passengers, property, and equipment by requesting that all individuals that are NOT patrons of the commuter rail facility to vacate the premises in a prompt and orderly manner to maintain Public Safety. (Note: especially important to deter local youths from attempting to use parking facilities and/or the Metrolink train platform as a recreational facility and thereby placing themselves at great risk of bodily injury through auto/train collisions with bicycles/skateboards). Our officers also respond to requests from service patrons for assistance and service information. The officers have to be very familiar with train and bus schedules, ticket and vending machine operations, Bike Station operations, parking permit requirements, sales procedures, and the Metrolink system rules and regulations. Our officers must prepare accurate, thorough and legible reports detailing any unusual incidents/accidents or occurrences during each shift as well as assist City personnel, police, and/or law enforcement personnel on City property as requested by providing perimeter access control, traffic direction, or site liaison. City Of Monrovia: AIS is responsible to provide unarmed uniformed security personnel and to provide security protection for City Monrovia's Department of Community Services; The Monrovia Public Library; The Monrovia Historical Museum as well as the City Events as designated by the City Manager. Our security personnel are completely outfitted with uniforms identifying us as Absolute International Security employees and equipped with appropriate related security equipment as authorized by provide security protection at the premises, including weekends and holidays. We are ensure all our security personnel assigned to the premises are adequately trained in and competently aware of applicable the City policies and procedures. LADOTI MV Transportation: AIS is pleased to announce that we have been awarded to sub-contract security services to MV Transportation for LADOT's Bus Station service project in Sylmar yard. We are currently Proposal for Unarmed Security Guard Services for City of Vernon 18 All information contained on this page is subject to the restrictions detailed on the footer of the first page. �ti+ �rltr +�� T r ABSOLUTE MTEPATIOMLSECUMTY7 AIS � providing security services at all access gates, enforcing parking regulations to the Bus yard, conducting security patrols of specified areas. We are ready to provide immediate responses to security alert signals in accordance with established procedures. We even standby with MV Transportation management in case of potential union strikes to maintain a safe and peaceful environment at the bus yard. As usual, security officers are expected to deter crimes such as theft,burglary, vandalism, graffiti, etc. City' Of South ICI hlon to Community- Center The City of El Monte has multiple city events spread through the year, which are held in the South El Monte Community Center on an on-call basis. AIS provides security services for safety and crowd control for all City events_ All officers assigned to the job need to patrol all vulnerable areas, restrooms, parking lots, high activity areas, and more. We are ready to summon the appropriate police/fire authorities if necessary. At the same time, we provide all necessary assistance to management with on-site safety issues. El Monte t1ninrr High Schtgpl District: Our security officers must provide a security presence at ALL schools within the Union School Districts and campus by providing patrol service in our clearly marked security vehicles. They also conduct foot patrols to ensure all doors and gates are secure and that the properties are safe from vandalism. Preventative measures dealing with potential accidents, vandalism, theft, and other unsafe conditions are a must. Our professional officers are required to escort people who are sleeping, hanging out, or consuming alcohol off the property. The officers then will follow up by persistently patrolling the same location to ensure past incidents will no longer be our client's problem. They are always aware of any suspicious activities and persons at the jobsites to maintain a peaceful and safe environment for schools. Our well trained officers provide any emergencies help and friendly assistance for not only students, faculties, staffs but also all the visitors. LADXNT AIS have been awarded to sub-contract security services to LA Department of Water and Power. We are providing vehicle control at all access gates, enforcing parking regulations. Our security services also include security patrol of specified areas, provide immediate response to security alert signal in accordance with established procedures, and deter crimes such as theft, burglary, vandalism, graffiti, etc. City of Santa NIGnica/Big Blue Buy AIS won and pending the final step through the board of City of Santa Monica (Big Blue Bus). We will start security guard service soon in July. Our full-trained Security Officers will be patrolling the various buildings and parking lots located at the BBB facilities. Security Officers will be responsible for staffing vehicle entrance to identify visitors and vendors, monitoring electronic security equipment and cameras, and inspecting offices and spaces of BBB facilities, as well as completing other security daily activities. We will provide professional security service to City of Santa Monica/BBB to maintain a safe environment for public. Proposal for Unarmed Security Guard Services for City of Vernon 19 All information contained on this page is subject to the restrictions detailed on the footer of the first page. �'►]L 1lQ�f� R',ur s3Sti� - ABSOLUTE MERNATIONAL S�CU�TYn it) CURRENT BUSINESS REFERENCE CITY OF COVINA METROLINK LA DEPARTMENT OF WATER AND STATION 125 E. College Street, Covina, CA 91723 POWER(Sub-contract) 111 N. Hope Street, Los Angeles, CA 90012 http:r:metro]inktrains.com/ho«,toride.page.-title Mr. Ronald Dergrigorian rsecurit%' Water Quality Laboratory Manager Ms. Anne Perkins-Yin Tel: (213)367-8523 Management Analyst in Transportation Entail: ron.dergrigorian ccladwp com Tel: (626)384-5520 CITY OF MONROVIA LADOT/MODERN PARKING 119 W. Palm Ave, Monrovia, CA 91016 1200 Wilshire Blvd. #300, Los Angeles, CA 90017 \�i-kA1- cityofmonrovia o www.ladottransit.com Ms. Rebecca Romero Ms. Melody Perkins/Mr. Gary Pitts Asst. Recreation Coordinator Executives Tel: (626)256-8232 Tel: (213)482-8400 LADOT/1VIV TRANSPORTATION(Sub- CITY OF SOUTH EL MONTE contract) COMMUNITY CENTER 12776 Foothill Blvd, Sylmar, CA 91342 1530 Central Avenue, South El Monte, CA www.mvtransit.com 91733 Ms. Theresa Kunkel w%t-wc i.south-el-monte.ca.us Safety& Training Manager Mr. George Munoz Tel:(818)898-7200#107/(661)212-1473 Recreations Supervisor CONSULATE GENERAL OF THE Tel: (626)579-2043 PEOPLE'S EL MONTE UNION HIGH SCHOOL REPUBLIC OF CHINA DISTRICT 1. Administration Building 1003 Durfee Avenue, El Monte, CA 91733 443 Shatto Street,Los Angeles, CA 90025 %v 14.emuhsd kl? ca_us 2. Visa Building Ms. Rosanna Mcleod 500 Shatto Street,Los Angeles, CA 90025 Director of Purchasing http: :[osangeles china-consulate.org Tel: (626)2584905 Mr. Ku Wei Chief of Administration BONITA UNIFIED SCHOOL DISTRICT Tel: (213)798-3369 115 W. Alien Avenue, San Dimas, CA Email: auxvei(c�mfa,�,oN�.cn 91773 Nti-xi-N% do bonita k12.ca us Ms. Donna Martin Administrator Tel: (909)971-8320 Proposal for Unarmed Security Guard Services for City of Vernon 20 All information contained on this page is subject to the restrictions detailed on the footer of the first page. M Attachment AFFIDAVIT OF NON-COLLUSION BY CONTRACTOR STATE OF CALIFOIWIA )SS COUNTY OF LOS ANGELES} Lucy Lin , being first duly sworn deposes and says that he/she is President/QM _ (Insert"Sole Owner","Partner","President","Secretary",or other proper trite) of Absolute Security International Inc. dba Absolute International Security (Insert name of bidder) who submits herewith to the City or Vernon a proposal; That all statements of fact in such proposal are true; That such proposal was not made in the interest of or on behalf of any undisclosed person, Partnership, company,association, organization or corporation; That such proposal is genuine and not collusive or sham; That said bidder has not, directly or indirectly by agreement,communication or conference with anyone attempted to induce action prejudicial to the interest of the City of Vernon,or of any other bidder or anyone else interested in the proposed contract; and further That prior to the public opening and reading of proposals,said bidder: a. Did not directly or indirectly, induce or solicit anyone else to submit a false or sham proposal; b. Did not directly or indirectly,collude,conspire,connive or agree with anyone else that said bidder or anyone else would submit a false or sham proposal,or that anyone should refrain from bidding or withdraw his proposal; c. Did not, in any manner, directly or indirectly seek by agreement, communication or conference with anyone to raise or fix the proposal price of said bidder or of anyone else,or to raise of fix any overhead profit or cost element of this proposal price, or of that of anyone else; d. Did not,directly or indirectly, submit his proposal price or any breakdown thereof, or the contents thereof, or divulge information or data relative thereto,to nay corporation,partnership, company, association,organization,bid depository,or to any member or agent thereof, or to any individual or group of individuals, except the City of Vernon, or to any person or persons who have a partnership or other financial interest with bidder in his business I certify under penalty of perjury that the above information is correct By: _ Title: President/QM Date: 06/22/2015 Attachment A CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE§ 1189 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached,and not the truthfulness, accuracy,or validity of that document. State of California ) County of Ar" an &- ` I, before me, :~1r , 4 G , to Here Insert Name and Title of the f ocer personally appeared �s + :14 Name(s)of Signer(s) who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(les),and that by his/her/their signature(s)on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. d.C. WITNESS my hand and official seal. la- Commission*2104M Nora■v Public-Caff "" A^geles County ' `_ yes Apr 23,2U19 Signature --��_• Signature of Lary PubFic Place Notary Seal Above OPTIONAL Though this section is optional, completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document. Description of Attached Document Title or Type of Document: ,��+ XI : M 4 bocument Date: Number of Pages: Signer's) Other Than Named Above: 6 _ Capacity(lies) Claimed by Signer(s) Signer's dame: Signer's Name: Corporate Officer — Trtfe(s): L_ Corporate Officer — Title(s): _ C Partner — 71 Limited General C Partner — ❑ Limited ❑ General E. Individual ❑Attorney in Fact ❑ Individual ❑Attorney in Fact ❑Trustee ❑ Guardian or Conservator ❑Trustee ❑Guardian or Conservator ❑ Other: Ll Other: _ Signer Is Representing: - Signer Is Representing: zSf 02014 National Notary Association • www.NationaiNotary.org • 1-800-US NOTARY(1-800-876-6827) Item#5907 Attachment A ILY 19CP City of Vernon Department of Gas & Electric 4305 Santa Fe Avenue,Vernon Ca 90058 Phone:(323)583-8811 www.cityurvernon.org June 04,2015 Addendum No.1 RFP Unarmed Security Guard Services This notice shall be considered as Addendum No. 1 to the Scheduling "Unarmed Security Guard Services"Request for Proposal(RFP). RFP SMifications: 1. The RFP specification and section titled "Scheduling" on page 5, shall be amended as follows: Contractor must provide unarmed security services to monitor the Station "A" Soto main entry gate, permitting and documenting authorized entry only and providing surveillance services for Vernon Substation 24 hours per day, 7 days per week. Contractor must also provide unarmed security services to monitor activities and document entry into the Soto Yard facility as well as perform roving patrols throughout the VG&E critical substations, infrastructure, inventory, equipment and assets from 5:30 p.m. and 5:30a.m. 7 days per week. The same security services based out of Soto Yard shall perform roving patrols throughout the VG&E critical substations, infiastructure, inventory, equipment and assets on Friday, Saturday,and Sunday between 5:30 a.m.to 5:30 p.m. Therefore, security services based in Soto Yard shall be served continuously from Thursday afternoon 5:30 p.m. to Monday morning 5:30 a.m. Sincerely, Carlos R. Fandino Director of Gas & Electric CF/j v c:City Clerk Attachment B f City of Vernon Department of Gas & Electric 43M Santa Fe Avenue,Vernon Ca 9M8 Phone: (323)583-8811 www.cityofvemon.org June 08,2015 Addendum No-2 RFP Unarmed Security Guard Services This notice shall b_. considered as Addendum No. 2 to Exhibit A "Affidavit of Non-Collusion" and Exhibit B"Standard Form Contract"for the Unarmed Security Guard Services Request for Proposal (RFP)- RFP S ecifi ons: 1. The RFP specification section titled "Exhibit A -Affidavit of Non-Collusion" on page 10 and"Exhibit B— Standard Form Contract" on page 11, shall be amended to include the form and contract as part of the RFP: • Exhibit A—Affidavit of Non-Collusion • Exhibit B Standard Form Contract The above mentioned Exhibits are available at - r t under Unarmed Security Guard Services. Sincerely, Carlos R. Fandino Director of Gas&Electric CFry c:City Cleric Attachment C Request for Proposal Unarmed Security Guard Services Clarification Request Response Proposals Opening Date: June 22, 2015 No. Question Response 1 Will the selected contractor furnish standing security Please see page 5—Scheduling. officers at VE&E station A Soto gate,Vernon Substation The City is requesting security and Power Plant (3 separate locations 24/7)? guard stationed at Station A Soto Entry gate 24 hours 7 days a week and a roving patrol throughout the City VG&E critical substation, infrastructure, inventory, equipment and assets nightly between 5:30pm and 5:30am 7 days a week. Station A and Power Plant is the same _ location. 2 If so, is it one officer per location around the clock(504 Security guard stationed at hours of weekly labor)? Station A 24 hours 7 days a week and a rover patrol from 5:30pm to 5:30am 7 days a week. Also the rover patrol shall perform security services Friday, Saturday and Sunday from 5:30am to 5:30pm. Therefore, security services based in Soto Yard shall be served continuously from Thursday afternoon 5:30p.m.to r- -- Monday morning 5:30 a.m. 3 If I read the RFP correctly,there seems to be a need for Yes. From 5:30pm to 5:30am 7 the contractor to provide a vehicle for patrols throughout days a week. the City between 1730-0530, is this correct? 4 Is there any equipment we should factor in the proposal Please see page 4—Contractor (i.e.cell phones, radios,carts, etc.)? Responsibilities bullet point 3. It list what contractor shall provide 5 Can you please identify the incumbent contractor? S&S Labor Force Inc. 6 Can you please provide the billing rate of your incumbent $40.00 Hourly Rate. This rate contractor for all personnel and services requested in the includes all overhead cost RFP? 7 Is the client wishing to transition any incumbent staff if a No new contractor is awarded the bid? 8 If there is current staff members considered for None Attachment D transition,can you please provide the billing rate and/or wage rate for each? 9 Will client spec wages for any or all personnel? Contractor shall comply with the City's wage ordinance as stated in the RFP package. 10 Exhibit A and Exhibit B were blank on the document Exhibit A is the Request for received on 5/14. Will these exhibits be posted as Proposal and exhibit B is the addenda on the RFP webpage? selected proposal. Both exhibits will be filled once the City awards the contract. 11 Please confirm service hours per week(HPW)for each The City is requesting security position detailed in the RFP. guard stationed at Station A Soto Entry gate 24 hours 7 days a week and a roving patrol throughout the City VG&E critical substation, infrastructure, inventory, equipment and assets nightly between 5:30pm to 5:30am 7 days a week. 12 In regards to the roving patrol, will the vehicle be The contractor shall provide provided by the City or will the contractor provide the vehicle. billing? 13 If the contractor is providing vehicle, would you prefer it The cost of the vehicle be billed is built into the hourly bill rate or have costs direct billed as a separate item. as a separate item? 14 Attachment a Request for Proposal Unarmed Security Guard Services Clarification Request Response No.2 Proposals Opening Date: June 22, 2015 No. Question Response _ 1 Does the city wish to have all holiday hours built into the Hourly rate shall include hourly bill rate or should we propose a holiday rate and everything _ bill as they occur? 2 Is the unbound original proposal part of the 7copies to Yes. Out of the 7 hard copies 1 submit? i is unbound original. 3 Can a company vehicle be parked at Soto Yard? Yes 4 What is the proposed budget? We have not proposed budget _ 5 What is the term of the contract? 13 year term. City may terminate the contract in whole or in part any time,for any cause or without, upon fifteen (15)calendar days written notice to Contractor. 5 Is there a prevailing wage requirement? Yes 7 Is there a need for a vehicle to perform the scope of work Yes in the RFP? 8 Are there any requirements from the City of Vernon for Preferably the patrol vehicle will the type of vehicle (car or truck, 2 wheel drive or 4 wheel reflect the City's commitment drive)to be used for the Roving Patrol? to providing safe and effective services in a professional manner. Although no specific requirements were outlined in the RFP, a clean,well maintained, highly visible, easily identifiable car or truck is desirable. 9 Does the vehicle need to be equipped with specific Light bar, first aid kit,fire equipment(ex. Light bars, first aid kit, fire extinguisher) to extinguisher and spot light is perform the patrol tours? preferred but not required. 10 During patrolling VG&E facilities, can the guard station be Yes. unattended? 11 What is the expected duration of each shift? As long as the required coverage is met as stated in the RFP, the duration of each shift is _ dependent on the Contractor. 12 13 14 Attachment D Request for Proposal Unarmed Security Guard Services Clarification Request Response No.3 Proposals Opening Date: June 22, 2015 Na. Question _ Response 1 Flow do you want the bill rate to address for the vehicle Weekly rate. listed as separate line item for example, day rate or weekly rate? 2 Just confirming that the hours for the Soto St. location are ; This is correct. Monday,Tuesday and Wednesday from 5:30pm-5:30am (12 hour coverage)with patrol service every 2 hours and on Thursday the coverage starts at 5:30pm and continues through Monday morning ending at 5:30am (straight through)with patrol service every 2 hours. The Power Plant location is 24/7. 3 In regard to the vehicle listed as separate line item would j that the hours for the Soto St. it be acceptable to base the rate on specific number of location are Monday,Tuesday hours? if so how many hours would you require? and Wednesday from 5:30pm- 5:30am (12 hour coverage)with patrol service every 2 hours and on Thursday the coverage starts at 5:30pm and continues through Monday morning ending at 5:30am (straight through)with patrol service every 2 hours. 4 Are the patrol rounds hourly with the exception of Tri-Gas The patrol is every two hours. Substation? 5 Exhibit A for the Affidavit of Non-Collusion(page 10) is Please visit the City website blank, can you send me the Affidavit of Non-Collusion under this RFP for Addendum form? No. 2. _6__Lis there a requirement of CPR First Aid Card? Is not required 7 There is a 20 pages limit, does 20 pages include affidavit No. Affidavit is an attachment of Non-Collusion? to the proposal. 8 Does the Affidavit of Non-Collusion by Contractor need to Notarized is preferred but not be Notarized? required. _ 9 What are the starting dates of the contract for Unarmed . Tentative starting date is August Security for the VG&E Station A Power Plant&Soto Yard? 1, 2015. 10 How long does the contract go for initially(I read where it 3 year term. City may stated that the term of the contract shall not exceed terminate the contract in whole three years?) or in part any time,for any cause or without, upon fifteen (15) calendar days written AttarhmAntn J notice to Contractor. I 11 Are marked vehicles required for roving patrols Preferably the patrol vehicle will throughout the City of VG&E critical substations, reflect the City's commitment infrastructures and inventory location? to providing safe and effective services in a professional manner. Although no specific requirements were outlined in the RFP, a clean,well maintained, highly visible, easily identifiable car or truck is desirable. 12 Would the City of Vernon allow the contractor to bill the The cost of the vehicle be billed costs of vehicle monthly over and above the hourly rate? as a weekly rate and as a Or is this a cost that should be incurred by the contractor. separate item. I'm not clear on this? 13 Is the City office open to receive hand delivered The City is not open on Friday. responses on Friday June 19? 14 Are we to provide 1 copy or 7 copies as detailed in the Respondents are asked to opening paragraph? submit 7 copies. 1 of the 7 _ copies is unbound original. 15 Can the electronic copy come in the form of a link to an Yes. electronic copy? _ 16 Section 6A-2 "Organize your submittal in the order It applies to all section 6. described above". This is in reference to item 6B through 6H,Correct? Attachmentn STAY■ OF aALI►apt 11[A d ' Bureau of Security and Irlvesti ative Services nw" I P.O. BOX 98900� osPAgT1NFN1 OF COIfSUUM A"AM West Sacramento CA 9579E-9002 w 19161 312-4000 PRIVATE PERATOR LICENSE NO. PPO 16302 IF ti VALID UNTIL JANUARY 31, 2017 RECEIPT NO. 43430686 ABSOLUTE INTERNATIONAL SECURITY INC. ' *wiled "h-�r 'J s,UI d.4. 861 S. OAK PARK ROAD COVINA CA 91724 1/14 114 ----- NON-TRANSFERABLE --- POST IN PUBLIC VIEW ----- wpiPPO 07/29/06 $T A T■ O F CALIFORNIA 'ruff', $ureaar of Security and Investipmvve Services eewil P.O_ BOX 989I}I}2 QEpAArME.NYpF CONSUMER AFFAiRs Went Sasrlal$�t31 0 98-0002 BATON IRAI CERTIFICATE CERTIFICATE TFB 1188 VALID UNTIL JUNE 30, 2016 RECEIPT NO. 00218866 it[ c idahct--wi13 Lhi::pn'n}isial;s�:h :. M is�:oi -3,: .ChkoterAi IS:1;1'.�L�s�:B+�i�:��:. a -:pi`es; xi�h :.ode; :tht IariI€f am.�d A I S h e a'ii .is:.is d::. :.`I'r1011in :: 861 SOUTH OAK PARK RDrfiie # s� �, COVINA CA 91724 13114 13/14 ----- NON—TRANSFERABLE --- POST IN PUBLIC VIEW --- WPM 02/29/09 0 TAT o r CALF ORPIIA d i Bureau of Security and Investigative Services rowal P.O. BOX 989002 QEDARTMENTOF:CONS11MSp AFFAIRS West Sacramento CA 95798-9002 + (9161 31 2-4000 FIREARMS CERTIFICATE CERTIFICATE TFF 1300 1 VALID UNTIL JUNE 30, 2016 RECEIPT NO. 00219723 Y; i1��;Ia>� .�vl•31:F �I��. Pi;f}-}siax�� ut A I S : s j 'ra# zisuad[ +�' 961 SOUTH OAK PARK RD cra#icate'Rep . COVINA CA 91724 9/13/14 Attachment E CITY OF COVINA 125 East College Street a Covina, CA 91723-2199 Phone (626) 384-5512 a FAX (626) 384-5499 a BL@CovinaCA.gov LICENSE# � BUSINESS LICENSE CERTIFICATE 36256 CFO LICENSE EXPIRES: 12131/2015 Business Name: Absolute Security International, Inc. Business Owner Lucy J Lin Presiderd/CEO 861 S OAK PARK RD COVINA CA 91724 Classification: Private Patrol/Security Date Issued: 10/01/2014 Special Conditions: The person,firm, or corporation named herein is granted this pemMeense pursuant to the City of Covina's Ordinances and Municipal Code provisions authorizing the activity expressly set forth and referenced herein. This permitllicense does not authorize. approve, or grant any rights not expressly included herein and does not authortre the approval of, endorse, or certify compliance with any other federal, state, or local law. This permitllicanse does not obviate the need to obtain any and all other faderal, state, or local permits, approvals, or authorizations required by law.City officials have the authority to determine whether any activity compiles with the tents and conditions contained herein.This permittlicense does not authorize any injury to the property or rights of others and does not authorize Interference with any existing or proposed project otherwise authorized by law. The grant of this llcenselpermtt does not exempt Its recipient from the enforcement of any Federal,state,or other local law. POST IN A CONSPICUOUS PLACE - NON-TRANSFERABLE CITY OF COVINA 444 North Citrus Avenue - Covina, CA 91723-2199 Phone (62 ) 384-5623 Fax (625) 384-5529 ' P0perrriit Co0naCA.9ov _ PERMIT# PRIVATE PATROL OPERATORS PERMIT 58241 LICENSE EXPIRES: 02/02/2016 Business Name: Absolute Security international, Inc. Business Owner. Lucy J Lin Business Address: 861 S OAK PARK RD Date Issued: 02/0312015 COVINA CA 91724 Classification: Private Patrol Ope►ators-PD Special Conditions: Police hief ! The person,fine,partnership,or corporation named herein(hereinefter,'Permit3ee')is granted this permit vvrsuan a pronsiom of ty of ma's Municipal Code and Ordinances I'CMC'15.40.010 at seq.that authorizes the Permitee to engage in Private Patrol operator Services as defined in CIVIC 45.40.010 et seq. This pe oes not authorize,approve,or grant any rights to Perrnkee that are nut notpressiv included herein and does not authorize the approval of,endorsement of,or certify compliance with any other Federal,State or Local laws pert ahiing to the operation.conduct,activities,or practices of persons,firms,partnerships or corporations engaged in Private Patrol Operator Services.This permit does not obviate the need for the Permitee to attain arty and all Federal,State,or lad permits,approvals or a Wrorizatlons as required by Federal,State or Lod laws.City offidals have the autho ftto determine whether the PMmitee has complied with the terms and conditions of this Permit and have the sudwrity to suspend and or revoke this Permit upon a determination the Pem itee has violated CMC 45.40.010 et seq.and or the terms and coWltions of this Permit. This permit does not authorize the Permitee or grant the Perinitee the right to engage in praakes.activities or conduct that would result in property damage or bodily Injuries or violate the rights of others and does not authorize Interference with any existing or proposed projects otherwise nudvxtzed by Law. This permit does not exempt Permitee from the enforcement of arty Fecienai,State or local taws.Permites understands.agrees and accepts that this Permit is governed by Federal,State and local taws,Including CIVIC J 5.04.010 at seq. POST IN A CONSPICUOUS PLACE-NON-TRANSFERABLE Attachment F CITY OF LOS ANGELES OFFICE OF FINANCE P.O. BOX 53200 LOS ANGELES CA 90053-0200 19 100-003601 1107 1 ABSOLUTE SECURITY INTERNATIONAL INC ABSOLUTE INTERNATIONAL SECURITY 861 S OAK PARK RD 861 S OAK PARK ROAD COVINA CA 91724-3624 COVINA,CA 91724-3624 THIS CERTIFICATE MUST BE POSTED AT PLACE OF BUSINESS CITY OF LOS ANGELES TAX REGISTRATION CERTIFICATE TICS CEFMFICATE IS GOOD UnL SUSPENDED OR CANIMLLED BUSINESS TAX ISSUED. 7/23/2011 WCCOLWI No. FLjF4. 0 7 4iF"Km STI STAPIM Tus W024 1 3007-GODt-U L049 Pro FessionsADwupatom 01J0 009 Ac&e I ABSOLUTE SECURITY INTERNATIONAL INC s ABSOLUTE INTERNATIONAL SECURITY u a 861 S OAK PARK ROAD COVINA,CA 91724-3624 T cl 861 S OAK PARK ROAD Is D COVINA, CA 91724-3624 P. CAC411-rl� DIRECTOR OF FINANCE Attachment G NOTnFY THE OMr-F OF FWANCE IN WRrrING OFA14Y CHANGE IN OWNERSHIP OR ADDRESS p 0 66A 93200 LOS APIGELES CA SO053-0200 YOUR RETURN MAILING ADDRESS i ®®i 'ii�� NAME: ABSOLUTE SECURITY INTERNATIONAL,INC Mar �15 My ADDRESS:861 S-OAK PARK ROAD pro[LW.F-P*.-0M-dKPr4-rVmk CRY:COVINA STATE:CA ZIP CODE:91724 4tl""a.-�-+in Er3 FICTITIOUS BUSINESS NAME STATEMENT TYPE OF FILING AND FILING FEE(Check one} fflOWa-9911 00(FOR ORIGINAL FILING WITH ONE BUSINESS NAME ON STATE 47n 0 Amerded(Ner)Far*-J1111lLIII(CHANGES IN FACTS FROM ORIGINAL FILING REQUIRES PUBLICATION) Pella=dot(NO CKQ40 .5 IN THE FACTS FROM ORIGINAL FILING) C5 44-FOR EACH ADDFTIONAL BUSINESS NAME FLED ON SAME STATBdBUT,DOING BUS WESS AT THE SAME LOCATION WJtrr FOR EACH ADOrrIONAL OWNER IN EXCESS OF ONE OWNER The follcwlrlg peraon(e)la(are)doing business at3: -1. ABSOLUTE INTERNATIONAL SECURITY g, AIS Prtrrt Rditlaua Business Nen1a{e) • 861 S.OAK PARK ROAD nee! ..-Ud p4rMI301 phhtll Qf WprWn V.Rwm-odor*%*it-CW@FWTI . CA 91724 LA COUNTY j Da awe zip COUNTY � CMy stems by Artikfts or kunrpore*m or CNer t den Number(I eppgrabte):At ION _ 'REGISTERED OWNER(S): 1 . ABSOLUTE SECURITY INTERNATIONAL,INC 2. FWI Nam&CorWLLC(P.O-Son nnh amepted) Fug NameiCorpA-LC(P.O.Box nat aampted) 861 S.OAK PARK ROAD Residence Address Residence Address COVINA CA 91724 City State zip City Slate Zip CA If Corporation or LLC-Print State or InoorporaticNOrganization K Corporation or LLC-Print State of IncoMoraldaNOrganization 3. 4. Fuit NamelCorpILLC(P.O.Sox net awepted) Fug Namecorp&w(P.O.Box not acoWed) Residence Address Residence Addmw City state zip CRY State ZIP If Corporation or LLC-Pr#nt Stated hoorporaftOOManizatIon M Corporation Of LLLC-Pratt State of IncorporatlorIlOwftation IF MORE THAN FOUR REGISTRANTS,ATTACH ADDITIONAL SHEET SHOWING OWNER INFORMATION ****THIS BUSINESS IS CONDUCTED BY. (Check one) an Individual [:]a General Partnership [:]a Limited Partnership E]a Limited Liability Company []an Unincorporated Association Other than a Partnership Qx a Corporation Oa Trust Copartners [3a Married Couple OJoint Venture State or Local Registered Domestic Partners Qa Limited Liability Partnership —The data registrant started to transact business under the fictitious business name or names listed above: 09/2&20a8 (VOW WA sba"I you uaveM eterled to trwosed bushm) I declele!fret s®Information In this statement Is brae and correct (A registrant who declares as true any material matter,pursuant to Section 17919 of the Business and Professions Code that the registrant knows to be false is guitty of a misdemeanor punishable by a fine not to exceed one thousand dollars($1,000).) REGISTRANT(S)/CdRPA-LCNAME(PRINT) _ASSOLUTESECURITY INTERNATIONAL,INC TITLE PRESIDENT REaI$TRANT SIGNATURE — IF CORP OR LLC,PRINT NAME LUCY J.LIN If corporation,also print corporate title of officer. K LLC,also print title of officer or manager. This statement was filed with the County Clerk of LOS ANGEL on the date irtdi ated by the filed stamp in the uppw r9{))rx cormr. NO r UE-nN ACCORDANICE=W i i ri SUBDrvglON(a)OF S5C7 i 17M,A FIC 110US NAME S T ATEhAEINT GENERALLY EXgIRE5 AT THCv END OF FIVE YEARS FF1QIJ THE DATE ON WHICH IT WAS FILED IN THE OFFICE OF THE COUNTY CLERK,EXCEPT,AS PROVIDED IN SUBDIVISION(b)OF SECTION 17M,WHERE IT EXPIRES 40 DAYS AFTER ANY CHANGE IN THE FACTS SET FORTH IN THE STATEMENT PURSUANT TO SECTION 17913 OTHER THAN A CHANGE IN THE RESDENCE ADDRESS OF A REGISTERED OWNER. A NEW FICTITIOUS BUSINESS NAME STATEMENT MUST BE FILED 13EFORE THE EXPIRATION. EFFECTIVE JANUARY 1,2014.THE FICT#CIOUS BUSINESS NAME STATEMENT MUST BE ACCOMPANIED BY THE AFFIDAVIT OF IDENTITY FORM. THE FLJNG OF THIS STATEMENT DOES NOT OF ITSELF AUTHORLZE THE USE IN THIS STATE OF A FICTITIOUS BUSNESS NAME IN VIOLATION OF THE RIGHTS OF ANOTHER UNDER FEDERAL.STATE OR COMMON LAW(SEE SECTION 14411 ET SEO.,BUSINESS AND PROFESSIONS CODE). I H&MEYCERnFY THAT THIS COPY IS A CORRECT COPY OF THE ORIGINAL STATEMENT ON FILE 1N MY OFFICE. DEAN C. LOGAN,LQ$ANGELES COLffM QERK BY: .Deputy Rev.01/2014 P.O.BOX 1208,NORWALK,CA 9MI-1208 PH:(W2)4U-2177 WEB ADDRESS:LAVOTENET Attachmpnt R Attchment H cmN ACOO O CERTIFICATE OF LIABILITY INSURANCE o"ww"" THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMMO, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER,AND THE CERTIFICATE HOLDER. IMPORTANT,, If1he cerlifiCale holder 1s an ADDITIONAL NSURED,tht-policy�ie9l must be endorsed. tf SUBROGATION IS WAIVED,subject to the terms and conditions of the policy,certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorgenw MIN). £ CT FCrinti Fax-kin PRODUCER Jalmess G Parker Insurance Associates "uLn- �559)222,772P F°' S`us723-179r — License f0554959 kparki ri@ j cr ker.Ccm P o Box 3 947 R LWER(61 AVkWbW COVER *Ar_0 Fresno CA 93654 Inavranme Co ID651 INSURIM Cc'wRF♦36'�Iyarest National Itlstlranc c CC 10120 Absolute Security International, Inc dba RSUREFC 861 S Oak Park Rd ou LMEa n psI5Ulw�rl E Covina CA 91724 IwSLmERF: ODVERA10ES CEIMFICATENUM0EFZ;15-1S GL UMB SIC 14-15 PA REVISION NUMBER, THIS IS TO CERT15Y 7*44T THE VOLeMES OF I34$URAHCE USTFSI EELOW HAVE 0EEN WLIED To THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED NOTWITHSTANDING ANY REQUIREMENT,TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN,THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES_LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAWS, _ AUK - I CY Lrtrra TYPE 6i INS;IR LNCE T00-11071 Y NU116Fr1 G9K1RhLLIA81LiTf EACHC%UflR04CE II 1,OOO,OQp X C% WER-:IALGENERALLIAEILITI X 50,400 A CLAIMS-MADE W OCCUR 51 !#7l#0 5 {s7{241C f 5.o4tl a;ER60ea+vLBd,[T+�4Nr�Y # 1.004.004 Cp� RAi AGGREGATE GEH'L AGGREGATE LIMIT APPLIES PER^ FFIOD 1CT9-CX-11 [W A5G # r C D O O P'W '* M'P.O LO AUTOMOBILE ULABHSfY � � ' IL ANY AUTO BDDYY H.RR3'Y d`+ps.+�il ALL OWNED SCHEDULED LCAD0040S142 {]3l2n15 {3!/20SE BpD0.YRMaiY Rr�mdS f AUTOS AUTOS 1 N-0M'NEO ip� >< HIRED AUTOS AUTOS f uM LucOCCUR EACF'� s 1.OI}4,t}Uta A EXCESS CLa YIf AGGREQAM f IL,000,GOO Df iz'Tf7J'r_ 1G.0 ?+"rn025fi1i$! 12712015 �f27l201s f WORKUMCOWERSATIC" X Vw A D AND EMPLOYERS'LIABILITY AN''{�ppyT4F,PA,RTPffY*_ EB F Y I hiF L.tart!Ai:G'IOEHT f 1 4 D D O D D E MF� F%YN ray_n+ f MIA /IG7{$fii3 {Y7IiI01# n►EA-9E- F ]COOfIOU82ISi E L JI }RL # O 0 �. DO 0 K��!s Olw�Lam+ EL DISEASE-#'r/aCr i.6,fT S 1 t} t} 004 DF5�.APTk3N G€4PEPATIOHS bLL3k DESCRIPTION OF QPFRArgM I LQrATKW2'I VB41CM(Aoach ACORD Mr Add"k'4W RW"ft SdWdu of maA+per w ngldrW} *The Umbrella covsra,ge blankets the General Liability, Automobile Liability, and Workers; Compensation coveraale CERTIFICATE HOLVeR CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN FOR INFORMATIONAL PURPOSES ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORMED REPRESENTATIVE ,S Parker III/K IPAR ACORD 25(20101'05) ©1999-2010 ACORD CORPORATION. All rights reserved. ING025wi,MS,❑7 Th.Arf)12r%no—...A I—arc ronicinrori414 of Arr%0n Attachment I I'\rjo i' i "y4 r Lisa Phan Absolute lntemational Security 86, S Oak Par91721 �V Rd Covina, CA- 97 1LA Re: $5,0Mr,Q00 excess liability Dear Lisa: Confirming our conversation. we are able 1c, provide a $5,000,000 excesa police- ci yo:.Et request. Please lei me knovv when you wish to bind For questions on this or ony other issue e o• i •4f]r 4�2?2. Thank you. Catherine Bantle Partner James G Parker Attachment J Everest Indemnity Insurance Company- Cow Profile-Best's Credit Rating Center Page I of 2 Ratings & Criteria Center � n �rA r ftc Warrd CarrWmAaa•Pad0c I Canards 1 Europe,Biddle Fast and Africa 1 Latin Arnmira 1 MENA.h SCA Home 1 About tfs I Contmt Ur I Sternap Now Srarcb SkENA ■ --_ .__'rry'1':` {' Ratlnpc fk CrilsYla W Hume RdwassMCOKKkAM Everest Indemnity Insurance Company .Beefs OwM Ra rnW• AAL OWt..01 adios WW F fMl FBrr E:72352e04-/ .Faanad SO-Ulh Ra ng .Iss"Credo FU" MOWS Address Avsigned 1v A m-W ltawO RObO .DW FbO„g P.O-BOX 830 . Ow A9rted Search Ldmvty Corner.NJ 0793&-S&% that have.i ar .J r rbaf Bests Credit Raongc+ _ - - Ow . A. a GM a Crm*Rem e u ior ehdrty * s poor to rre'el d%w .Ba irs Spartan Repork Web:: '- obOwidons .Ads Bests Credi Ratingsea Srch Phone'W844 A-3000 . To Yaw site Fate 9DB-604-3450 r 6e0tptk to 5earrRMad &M.O s Based an AA.Bests&natysis, is tthe AN8 Ukiruete PamK and idanti6ai the topmost mutt•of the a Colin w 4rolya corporaic stuctute.View aW'4r . -_ .- fi Ors"Rhntae. .ALiards wd Recagropms Bests Credit Ratings Prodkrds&Servims View as of the_ _ - assigned this rating as s pat of en 4 t' _ - Irwkin y hdoernelim FirManLd aerBtb � v+ar*h�rr�e:eiyr &mMt'a Crartrt nettef AnOyat Carpmft E2.tprB: A+(&q3 t-,or) OtSe+=AM.Best Company,Ckhwidr NJ RgpAK ry Affairs Affiftdon Coda: B(Group) Swdaar Fkmaxial Arralyrd:Gala Guerra Support;ftw"Umss FYandal Size Gatsgorr. XV(52 BaiPion or"WO Assistant Vice President Patarl)w*ey Conferences and[-rams OLdloale Stable Action: Affirmed 8[ecfiw Dale: •k$125,2013 FlAd&Sesid(:redirJ�R Enw a paapdr9'Neste kd"Rarng Date: January 76,1 S6t3 t i' Uwe•A-K Bess ■ � - LmWTaso laaLry CY*ft dnn L:c-v_001-ito J ..._ Lonfl Term: AN Best tiwtg Senice€ Oudook: _. --- Action: AfFtrrred SLAY 24' l3 _ - Oftot va Date: Jury 25,2013 17em-Raring Ddiaelmns hdM R7lllrp hale: Ame 17.20D5 Sdrsg ore._ Reports old News Visit BesM News and Anelyen sRe for the latcs-m a.'o:=s•=ILK-`-_� for Oft mropwW and its AM.Hard Group. r� AN0 Crcdh pr'm -wwA4en Beats Fi► aciid SCertgth Rom and-a-We along wdh a rnprW—an*bGM mnitvenmry,detailed buun ms overview end hey kum vial data. 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L_i�4'v,1•i F'•� ill' Attachment K http:/(www3.ambest.com/ratings/entities/CompanZ rProfilc.aspx?ambnum 2799&LTRatingi... 6/24/2014 Everest National Insurance Company - Company Profile- Best's Credit Rating Center Page 2 of 2 P ,rs 5'i'r rnj'i rss Rewy= — Pic +IS 6ed's Fealiairn,C:orf'e� E�fia 5dned Ff n;Cfintxxde�Z-!• i5 FSF:ts�_'�E'ls;F/Re�nsue* .-Fi; LS Furagw Mona 6lydarlrlt A L Bom-Emorr RaQ nG Be-"Llmbd AA MMS1 A d AAL Beat Company,k an Ewdnrnal GroM Assess mt rtsb Aono CEQuI Yi Ore Ewopew thdral alp Thaemre,taedt r'Lkh r,KUP!d L+y A WGE`TS maf M Vied# y'prneUE in the EU as par Oww2 e X WLIEC. AtatrrOrt pardwaras UL Gea1 OfeW FAprngp ara awLL �er ppavpn wb iet relenfarda 91 dn-1haT awe rmt rrC7nFae`ieGnrt Id 11% 7-OW a L�b mry fiG4}or ary o#w kAm dSrwxxd a ft Pr6OWCO P96AM and are"G tOwnR erWabmr rd be UOM to+rpaa hn�e.ttfpnyn}ntagnnp Cec�n'nt AV BCr:1 Ll d k T*5"z d as a OreO p pradrd,^tt tK* Fnandal Gurei3et L'aanar T&VNW 4110M undrn*0 Oo+parawq Au&Pgpt, �rr9!Y, w,Y�n Ausi+�t andFrdda A.al Barr AusPadk Ud tieN tMWgL and"odwF r F are not�ta'+tl63 W anp PIM4 Mt ba d4Abuaed to any PWM rn AU6bVfiia aVm dwn e v$mim de dYnl as dafmad m We CuPQabon6 Ao of 21301,d Wp T The A M.Baet wohokps are m,InlumW 1w um by kmw*kn Years win on,not datlred as wldaale uaers- kroorinR WoOm Baum Flan gs rodeo rwr Wopwawdera opWwk hyrax m p 33ffq9*rwwhp Qviord2dwe and Wjolftkr erelnaet m d r eeanpenys baWta sfwd Mnny6+.opersaV pafmroar= and b obaw prafla Thom ra* am nntplter a wwaM d■raWW%kwa nnel'AtA9lh OW pg eNhy u,01"ft aWXW DWWjm*.b> 9 Owen W pdk*mWc a View off for Oxrgiato daGaffr� DAtamwx SexMhx I P eke Suppaf I M arbor Germ I Carved Into I cwr —t Abort A.Ad_east I Sae tdsP I PM—Y Poky I Sea irky I Tn:rtns of We I L"W 6 Lnaansrtp DPSeyrtV"t A Lk 13�L Company,Inc-ALL MHTS RESERVED. A-A 5ra Waievnpe tlaaggsalrr Ambesl Road.OWwaOL New Jerwy,0"58.US.A. Attachment K httn:l/www3.ambest.ccm/ratings/entities/SearchResults.aspx?Alt5rc=9 6/24/2014 �+y�if�CfJf ABSOLUTE MTERNATIONAL SECUMTY "�""" AIS mik um FINANCIAL STABILITY STATEMENT ***Please be advised,the information disclosed on this page is extremely confidential.We are entrusting the City of Vernon to handle said information appropriately. * Absolute Security International, Inc. is registered as DUNS#828041868 Absolute Security Intemational, Inc. has shown solid financial growth despite recent economic conditions. • CitiBank has extended a$75,000.00 credit line as a cash flow back up. • In previous RFP's, AIS has qualified for bid bounds on multiple occasions. + AIS has increased its sales revenue by over 150%, despite recent economic conditions. * On June 2010, AIS invested in developing a training facility and was approved as a Weapons Training Center by the California Department of Consumer Affairs, BSIS. AIS provided serious investments to maintain all necessary tools, weapons, and training programs needed to function and successfully achieve our goals. • By June 2012, we were awarded several accounts that require Patrol Services and increased our Patrol FIeet with additional vehicles. • Absolute Security International,Inc. hereby declares that the company has no record of bankruptcy, pending litigation,planned office closures,impending merger,etc... that may impede The Proposing Company's ability to complete the project. Executed this 22th day of June, 2015 at Covina, California By Proposal for Unarmed Security Guard Services for City of Vernon All information contained on this page is subject to the restrictions detailed on the footer of the first page. T J-�- _1_ _ UNQUIM October 17, 2011 Joyce Tung Absolute International Security 861 South Oak Park Road Covina,CA 91724 Dear lovcc: Thank you for renewing your CALSAGA membership. We have received your dues,and your membership is current. This letter will serve as your receipt for your renewal dues. Please note that your membership dues are not tax deductible as a charitable contribution. However, in compliance with the Omnibus Budget Reconciliation Act of 1993, a portion of your CALSAGA dues (although not that portion that pays for lobbying or allocated to our political action committee)may be deducted as an ordinary and necessary business expense. We will provide this portion, for use with your tax advisor, upon your request. We look forward to working on your behalf over the next year. Please feel free to contact CALSAGA should you have any questions concerning your membership, or if we can ever be of assistance. Sincerely, Kate Wallace Membership Coordinator CALSAGA California Association of Licensed security Agencies, Guards & Associates 915 I. Street. # C251 Sacramenlo, CA 95814 P 9I6-930-0552 866-310-2551 F 916-930-0702 w-ww.ca[saga-org infoCcalsaga.org Attachment N Z w � ? w W � E +.- w AIMk x J cc Attachment 0 CITY OF COVINA 125 Fast College Street a Covina., California 91723-2199 Nb1,c Worts Deparr,werx Tehrhom (626)384-5520 Derdupncm Bermes ompo: Faamnk (626)384-53 77 7'rampori0fion$rclra" June 22, 2011 1 would like to offer an enthusiastic recommendation of our current Metrolink Station security contractor, Absolute International Security. Absolute began service to the City roughly two months ago, and they have partnered with the City to craft a personalized security strategy that has greatly improved customer service at the Covina Metrolink Station. I participated in the development of a training curriculum, the creation of post orders, and in the training of Absolute's chosen personnel for the assignment. The staff provided to the City by Absolute is first rate and they understand how important it is to be a customer service representative for the City and for Metrolink. The Metrolink- commuters have developed relationships with the security staff in a very short amount of time,and the feedback that I have received since Absolute commenced service is that the change in contractor is a significant customer service improvement for Metrolink commuters. Based on the responses that 1 received for our security RFP. I know that you will Find a large number of eager companies that can complete the job effectively and professionally. l chose Absolute for our City because their proposel and interview proved that they took the time to investigate our situation in Covina and they came forward with unsolicited suggestions that showed they were detail oriented and committed to improving the environment. 1 did not want a company that viewed our contract as a routine client that would accept mediocrity- I wanted a company that understood that they were THE customer service contact at the location and I wanted our commuters to feel comfortable that the money they were investing in monthly parking permit fees were well spent and re- invested in quality service and a superior environment. The City of Covina strives to be a model Metrolink station, and for the high prices that we charge our commuters for parking it is important that the clients receive unparalleled service, since they could use the stations of nearby cities and park for free if they choose. Absolute understood that, and they have made a big difienme in promoting service quality since they arrived. If you have any questions,please do not hesitate to call me at (626)394-5519_ Sinc�erelly. Alex Gonzalez Senior Management Analyst Public Works Department Cc: Mandi Tiet,Absolute International Security Attachment P El Monte Union High School District 3537 Johnson Avenue a El Monte, California 91731 (626) 444-9005 sm oo M.G3rav6s arias G.Sabo A-vimm December 14,21}12 "~A"Ish*mHoa wpo„SO a at To Whom It May Concern: "c'C"° It is my pleasure to recommend Absolute Security Inc. as a security :hml bw»ass CW0601 company. In the short time that they have serviced or school district, we have kW KrW been extremely happy with their efficiency and professionalism. Aso Svp*rmpnc6W- Educokm"0 They have been able to service our school district with little to no mu j=WMW problems and their billing is accurate and timely. In this day in age when the majority of companies have recorders to answer the telephone it is quite refreshing to talk to a live person. If you have any questions,or need further information, please feel fie to contact me at(625)2584905. i Sincerely, �/ry 14 , Rosaina McLeod i\ Director of Purchasing cc: Matt Stsother Attachment p COS CITY OF COVINA 125 East College Street • Covina, California 91723-2199 Public Works Department Telephone. (626)384-5520 Development Services Division Facsimile:(626)384-5577 Transportation Section To Whom it May Concern: Absolute I ntematio rial Security has been providing security services for the City of Covina metralrnk Station and parking struchire since May of 2011. C)ver the past several years they have provided us with 24 hour security services and their guards have worked with the Transportation Section and Police Department to prevent vandalism and suspicious activity at both the Metrolink Station and Metrolink parking complex. The Guards have also gone above and beyond by creating relationships with commuters and helping individuals with Meilmlink ticket machines, train scheduies, and parking information. The City of Covina aims to uphold a high level of customer serviioe throughout all divisions and expects that contractors to do the same. Absolute International Security has not only upheld the ity's standafd, but has demonstrated that they strive to exceed that expectation. One additional responsibility they took on is the job of patrolling the parking tots to look for expired and missing parking perm ifs. This not anly helps save time for parking entorcernent atficers, but it also helps us keep track of our parking permit database so that we can capture arry missing revenue and catch potential permit issues before they arise. I have had the pleasure of working directly with supervisors Jerry Trueman and Ronald Frost and their carefutiy selected team of guards for the last year or so, and I have nothing but great things to say about heir perforrnance and response. l know that I can aWays count on them to follow through when it comes to new assignments and to find quick solutions far any issues of concerns that may come about. I highly recommend Absolute International Security for any security needs. If you should have any further questions for me regarding Absolute, please do not hesitate to contact me. can be reached by phone at 626-384-5520 or email at APerkins-Yin@covinaca.gov. Sincerely, Anne Perkins-Yin Management Analyst Transportation Section City of Covina I Public Works Department Attachment P Nn BONI TA UNIFIED SCHOOL DISTRICT - 115 West Allen Avenue San Dimas,California 91773 (9M)971-$200 Fax(9129)971-8329 Board or Educown Gary J.Rapkin--Ph-D- CIS Game Charm C reimn Asdst&K SAS dfn EIOf Lois Kbh -Educsibnat 5erAss Done K090 Cuts Rick-Humen Resources DevebPrent PMU Lalocn* Arm Sparks-Susness Ssrvlces August 8, 2011 Re: Absolute Intemational Security I am pleased to provide this letter of recommendation for Absolute Intemational Security. Bonita USD has contracted with Absolute for the past fiscal year. During this time Absolute has provided the District with night time patrol of all of our campuses and District Office and other security assignments as needed_ During this time Absolute staff has shown dedication to our requirements, professionalism in their approach, and a positive rapport with each job assignment li'ile have found them to be reliable and cooperative in all their duties. Please feet free to contact me if you have any questions. Sincerely, Ann Sparks Assistant Superintendent Business Services Me Sonia Unred Schoor De*V is an egUW gppartuniy err�ploy�er and does not deatr*m*on the baw of any�proocod y A P EXHIBIT C SCHEDULE 18 August 2013 . p m O d N T *~n O d v v N N ry r ^ r lu Y d d d Qj .7 Qj T N y N ry n m m m N N m V !O r m m T N C �➢ �D m �D �O O 0 Z ► E °xJ i 0 dE0 m Q ry d 49 E w a h C T y G Z 7 O a E O a o E c a n W v Y i w m u c '� 3 O = n W « n m o C O r•r s a D c ~W a as O �� FW d d o C D d G 4 p D u a Z d a c p u O O 1 F N al t y d U C M �^ F B �a ro a o � - c E m U a ry c b r 3 c a -0 a IL c n r m A _ ` L y G f�{ W N a}D. Y C DO d0 y L O c c G i E O m y� vs ¢ a v C. a ? � E C o u o m� aa Qa u � � Q r 3° E ° ram o a o u- W y °�01 L J - 7 I E 'o'o 4 -W = 5 r v z .c C P W m W N N W a W n uti vLi uti O `e vti uti O LL vLi vti vLi _+ 2 r Q r N S Est ? a v EXHIBIT D LIVING WAGE PROVISIONS Minimum Living Wages: A requirement that Employers pay qualifying employees a wage of no less than $10.30 per hour with health benefits, or $11.55 per hour without health benefits. Paid and Unpaid Days Off: Employers provide qualifying employees at least twelve compensated days off per year for sick leave, vacation, or personal necessity, and an additional ten days a year of uncompensated time for sick leave. No Retaliation: A prohibition on employer retaliation against employees complaining to the City with regard to the employer's compliance with the living wage ordinance. Employees may bring an action in Superior Court against an employer for back pay, treble damages for willful violations, and attorney's fees, or to compel City officials to terminate the service contract of violating employers. 19 August 2013 EXHIBIT E EQUAL EMPLOYMENT OPPORTUNITY PRACTICES PROVISIONS A. Contractor certifies and represents that, during the performance of this Agreement, the contractor and each subcontractor shall adhere to equal opportunity employment practices to assure that applicants and employees are treated equally and are not discriminated against because of their race, religious creed, color, national origin, ancestry, handicap, sex, or age. Contractor further certifies that it will not maintain any segregated facilities. B_ Contractor agrees that it shall, in all solicitations or advertisements for applicants for employment placed by or on behalf of Contractor, state that it is an "Equal Opportunity Employer" or that all qualified applicants will receive consideration for employment without regard to their race, religious creed, color, national origin, ancestry, handicap, sex or age. C. Contractor agrees that it shall, if requested to do so by the City, certify that it has not, in the performance of this Agreement, discriminated against applicants or employees because of their membership in a protected class. D. Contractor agrees to provide the City with access to, and, if requested to do so by City, through its awarding authority, provide copies of all of its records pertaining or relating to its employment practices, except to the extent such records or portions of such records are confidential or privileged under state or federal law. E. Nothing contained in this Agreement shall be construed in any manner as to require or permit any act which is prohibited by law. 20 August 2013 V RECEME® _ RECEIVED JUL 2 9 2015Lir JUL 2 7 2015 CITY CLERK'S OFFICE STAFF REPORT I1Y ADMINISTRATION HUMAN RESOURCES DEPARTMENT DATE: Atialtst 4, 2015 TO: Honorable Mayor and City Council FROM: Teresa McAllister, Director of Human Resources Department RE: Adoption of City of Vernon Personnel Policies and Procedures, Harass men t/D is crimination Free Workplace III-7 (new format) and Voluntary Respiratory Safety Equipment--Non-Safety Personnel VI-1 (new) Recommendation A. Find that approval of the proposed personnel policy and procedures in this staff report is exempt from California Environmental Quality Act ("CEQA") review, because it is a general policy and procedure making activity that will not result in direct or indirect physical changes in the environment, and therefore does not constitute a "project" as defined by CEQA Guidelines section 15378. Furthermore, even if it were a project, because such activity will not have any effect on the environment, this action would be exempt from CEQA review pursuant to CEQA Guidelines Section 15061(b)(3), the general rule that CEQA only applies to projects that may have a significant effect on the environment; and B. Adopt the attached Personnel Policy and Procedures, Harassment/Discrimination Free Workplace I1I-7 (new format) and Voluntary Respiratory Safety Equipment—Non-Safety Personnel VI-1 (new) and incorporate into the Personnel Policies and Procedures Manual; and C. Authorize the City Administrator and the Director of Human Resources to execute and distribute the above-referenced policies to all employees. Background The Human Resources Department is responsible for maintaining and managing the City's Personnel Policies and Procedures. Prior to 2013, a comprehensive review of the Personnel Policies and Procedures had not been conducted in over twenty (20) years. In line with the City's good governance reforms, the City commenced and is continuing its comprehensive review of its policies and procedures, including the incorporation of new policies and programs designed to benefit the City, its employees, and surrounding communities. Page 1 of 2 To ensure a more efficient and effective method in maintaining and managing the City's personnel policies and procedures, the City Council on November 20, 2012, approved Resolution No. 2012-231 that incorporates all personnel policies into the Personnel Policies and Procedures Manual. The manual is designed to provide a uniform and consistent system for human resource administration throughout the City. In addition, the manual will provide employees with greater clarity with respect to personnel policies, and promote effective communication among managers, supervisors, and employees. In furtherance of the City's good governance reform efforts, staff has presented the following new and revised policies for consideration by the City Council and adoption into the Personnel Policies and Procedures Manual: • Harassment/Discrimination Free Workplace III-7 (new format)—The attached policy is updated into the new personnel policies and procedures format. • Voluntary Respiratory Safety Equipment—Non-Safety Personnel VI-1 (new)—The attached policy establishes guidelines for the purchase and supply of air respirators for employees who voluntary request to wear a respirator to increase their comfort level when working in a non-hazardous or dusty situation even though the amount of hazardous substance or atmospheric levels that said employees may be exposed to in the course of their duties do not fall outside the limits set by CalOSHA standards. In accordance with the Meyers Milias-Brown Act, a meet and confer process on the above policies is not necessary because they do not change the working conditions, wages or hours of employees. The Harassment/Discrimination Free Workplace policy is updated to the new format. Fiscal Impact There is a fiscal impact to purchase a voluntary respirator and conduct the training and annual physical exams. The annual cost associated for each employee who voluntarily requests an air respirator is approximately $986 and can be absorbed in the departmental line item budgets for fiscal year 2015-2016. Attachment(s) 1. Harassment/Discrimination Free Workplace III-7 2. Voluntary Respiratory Safety Equipment—Non-Safety Personnel VIA Page 2 of 2 OFF VA Approved: f City of Vernon, California Human Resources Policy and Procedure Manual �x < Director of Human Resources City Administrator Number:III-7 Effective Date: SUBJECT: HARASS MENUDISCRIMINATION FREE WORKPLACE PURPOSE: To establish a policy regarding discriminatory and/or harassment in City employment, and to set forth procedural guidelines for resolution of complaints of harassment. This policy applies to all phases of the employment relationship, including recruitment, testing, hiring, upgrading, promotion/demotion, transfer, layoff, termination, rates of pay, benefits and selection for training. This policy applies to all officers, elected officials and employees of the City, including, but not limited to, full-time and part-time employees, temporary employees and persons working under contract for the City. POLICY: A. Discrimination The City of Vernon prohibits any and all types of discrimination of its employees by other employees or any outside parties. Discrimination includes all forms of harassment including, verbal, sexual, visual and physical as well as any form of discrimination based upon any protected class including but not limited to: race, pregnancy, childbirth, military leave, creed, gender, religion, color, sex, national origin or ancestry, age, medical condition including genetic information, physical or mental disability, veteran status, marital status or sexual orientation or any other consideration made unlawful by federal, state, or local laws. The City also prohibits unlawful discrimination based on the perception that anyone who has any of those characteristics, or is associated with a person who has or is perceived as having any of those characteristics. All such discrimination is unlawful. However, it is impossible for the City to assist in the prevention of discrimination by third parties unless an employee notifies the Director of Human Resources, their Department Head, or supervisor of such discrimination. If an employee believes they have been subjected to any form of unlawful discrimination, they are directed to submit a written complaint to the Director of Human Resources at the City. The complaint should be specific and should include the names of the individuals involved and the names of any witnesses. The City will immediately Number: III-7 Effective Date: undertake an effective, thorough, and objective investigation and attempt to resolve the situation. If the City determines that unlawful discrimination has occurred, effective remedial action will be taken commensurate with the severity of the offense. Appropriate action will be taken to deter any future discrimination. The City will not retaliate against an employee for filing a complaint and will not knowingly permit retaliation by management, staff, employees or co-workers. B. Harassment It is the City's policy to maintain a work environment free from all forms of harassment and to insist that all employees be treated with dignity, respect, and courtesy. Harassment, including sexual harassment, of one employee by another employee or supervisor is prohibited by law. The City's policy prohibits all forms of harassment and sexual harassment. All such harassment is unlawful. Prohibited unlawful harassment includes, but is not limited to, the following behavior: Verbal conduct such as epithets, derogatory jokes or comments, slurs or unwanted sexual advances, invitations, or comments; Visual displays such as derogatory and/or sexually-oriented posters, photography, cartoons, drawings, or gestures; Physical conduct including assault, unwanted touching, intentionally blocking normal movement or interfering with work because of gender, race, or any other protected basis; Threats and demands to submit to sexual requests as a condition of continued employment, or to avoid some other loss, and offers of employment benefits in return for sexual favors; and The City of Vernon cannot honor its commitment to maintain a work environment free of harassment without the employees' commitment to report and notify management immediately upon witnessing or experiencing such conduct. As an employee, you have a role in keeping the City free from harassment. If you believe you have been harassed or if you become aware of an incident of harassment, immediately report the matter to the Director of Human Resources. Your complaint should be specific and should include the names of the individuals involved and the names of any witnesses. The complaint will be promptly investigated in a discreet manner with information disclosed only on a need-to know basis. Investigation of a complaint will normally include conferring with the parties involved and any named or apparent witnesses. The City will take all appropriate steps, including all necessary disciplinary action, to stop the offensive or inappropriate behavior. Appropriate action will be taken to deter any future harassment. Harassment complaints are taken very seriously and the City wants the opportunity to resolve any problems. An outside third party may be asked to conduct the investigation. Number.•III-7 Effective Date: Additionally, supervisors or managers who observe or otherwise become aware of harassment that violates this policy have a duty to take steps to report any such harassment to his/her Director to prevent its recurrence. The Federal Equal Employment Opportunity Commission and the California Department of Fair Employment and Housing investigate and prosecute complaints of prohibited harassment in employment. If you think you have been harassed or that you have been retaliated against for resisting or complaining, you may file a complaint with the appropriate agency. The phone numbers for these agencies are located in the phone book under government agencies. Charges filed with either the California Department of Fair Employment and Housing or the Equal Employment Opportunity Commission are investigated by that agency; however, the Human Resources Department may also conduct a separate investigation. C. Sexual Harassment Sexual harassment of an applicant or employee by a supervisor, management employee, co-worker or a non-employee at the City of Vernon, will not be tolerated. Employees of the City of Vernon will not engage in sexual harassment. All City of Vernon employees shall report any sexual harassment, whether directed at them or at someone else, to the Director of Human Resources. The City is committed to compliance with all state and federal laws relating to sexual harassment and provides internal procedures by which allegations of prohibited conduct are filed, investigated promptly and handled in a reasonable and fair manner. Sexual Harassment is a form of sex discrimination that violates the law. The Fair Employment and Housing Act (FEHA) defines sexual harassment as harassment based on sex or of a sexual nature; gender harassment; and harassment based on pregnancy, childbirth, or related medical conditions. Unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature constitute sexual harassment when the conduct is severe and pervasive so as to explicitly or implicitly affect an individual's employment or unreasonably interferes with an individual's work performance or creates an intimidating, hostile or offensive work environment. Sexual harassment can occur in a variety of circumstances, including but not limited to the following: • The victim as well as the harasser can be a woman or a man. The victim does not have to be of the opposite sex. • The harasser can be the victim's supervisor, an agent of the employer, a supervisor in another area of the City, a co-worker, or a non-employee. • The victim does not have to be the person harassed but could be anyone affected by the offensive conduct. • Unlawful sexual harassment may occur without economic injury or discharge of the victim. 3 Number:III-7 Effective Date: • The harasser's conduct must be unwelcome. Sexual Harassment is prohibited and can include the following: • Sexual propositions. • Sexual innuendo. • Sexually suggestive comments, epithets or slurs. • Sexually oriented teasing or kidding. • Sexually oriented jokes. • Obscene gestures or language. • Obscene or sexually suggestive pictures or drawings. • Physical contact, such as patting, pinching or touching. • Unwanted sexual advances. • Offering employment benefits in exchange for sexual favors. • Making or threatening reprisals after a negative response to sexual advances. • Visual conduct such as leering, making sexual gestures, displaying of sexual suggestive objects or pictures, cartoons or posters. • Verbal conduct such as making or using derogatory comments, epithets, slurs, and jokes. • Verbal sexual advances or propositions. • Verbal abuse of a sexual nature such as graphic verbal commentaries about an individual's body, sexually degrading words to describe an individual, suggestive or obscene letters, notes, or invitations. • Offensive gestures (including attempts to look inside an employee's clothing). • Questioning an employee about his or her sexual history or sexual practices. • Any offensive touching (i.e., touching that would be found offensive under the circumstances by a reasonable person of the harassed employee's sex). • Physical conduct such as touching, assault, impeding or blocking movements. Department Heads, supervisors, managers and employees shall report any incident that may be interpreted to constitute sexual harassment to the Director of Human Resources. The Director of Human Resources shall commence a prompt, fair and reasonable investigation into the allegations and shall report back to the person making the complaints the outcome of the investigation. The Director of Human Resources shall recommend remedial action wherever possible. Disciplinary action, up to and including termination, will be instituted where it is determined that any form of sexual harassment occurred. Disciplinary action shall be consistent with the nature and severity of the offense, the rank of the harassing party, and any other factors relating to the fair and efficient administration of the City's operations. Every effort will be made to protect the privacy of parties involved in a complaint. Files pertaining to complaints will not be made available to the general public. All employees, supervisors and managers shall be sent copies of this Policy, and this Policy shall be given to each new employee in their orientation packet. 4 Number: III-7 Effective Date: Sexual harassment, as defined above, violates Title VII of the Civil Rights Act of 1964, the California Government Code, and regulatory guidelines of the Equal Employment Opportunity Commission, and of the California Fair Employment and Housing Commission. Employees should understand that the City considers violations of this Policy to be serious matters and that, although disciplinary action will be calculated to end harassment, employees may be terminated for sexual harassment. D. Investigation Upon the filing of a complaint with the City, the complainant will be provided with a copy of this policy. The Human Resources Department is the department designated by the City to investigate complaints of harassment. However, the Human Resources Director may delegate the investigation to an outside agency. In the event the harassment complaint is against the Human Resources Director, an investigator shall be appointed by the City Administrator and/or City Attorney. Based upon the investigation and any other relevant information, the investigator shall, within a reasonable period of time, determine whether the conduct of the person against whom a complaint has been made constitutes harassment. In making that determination, the investigator shall look at the record as a whole and at the totality of circumstances, including the nature of the conduct in question; the context in which the conduct, if any occurred; and the conduct of the person complaining of harassment. The determination of whether harassment occurred will be made on a case-by-case basis by the investigator. PROCEDURE: Responsibility Action Employee 1. Notifies supervisor and/or Human Resources Director of complaint. Department head/Supervisor 2. Notifies Human Resources Department of complaint. Human Resources Director 3. Obtains factual written statement of the complaint. 4. In consultation with the City Administrator and City Attorney assigns either an internal or external person to conduct the investigation of complaint. Human Resources Staff/Investigator 5. Conducts investigation by interviewing complainant, accused, 5 Number:III-7 Effective Date: witnesses and supervisor as appropriate. Human Resources Director 6. Reviews factual information collected and recommendations made. 7. Provides investigation report to the City Administrator and City Attorney. 8. Determine whether the conduct of the person against whom a complaint has been made constitutes harassment. 9. If a complaint of harassment is found, recommends immediate and appropriate disciplinary action and/or remedial action to the City Administrator. City Administrator B. Authorizes appropriate and timely action. Department Head 9. Takes appropriate and timely action. 6 k"4* { City of Vernon, California Human Resources Policies and Procedures L Director of Human Resources City Administrator Number: Ill-1 Effective Date: SUBJECT: VOLUNTARY RESPIRATORY SAFETY EQUIPMENT — NON-SAFETY PERSONNEL PURPOSE: To ensure the safe and proper use and maintenance of respirators that are not required under the hazardous exposure limits set by OSHA standards and the training of employees who voluntarily request them. To ensure that the appropriate certified respirator is selected for use to protect against the contaminant of concern. This policy does not apply to the use of filtering face piece-type respirators (dust masks). POLICY: With the exception of Police and Fire safety personnel, no employee shall be required to perform or enter areas where (1) engineering control measures are not functional, (2) the employee is required to wear a respirator in order to perform such work, or (3) the atmosphere is otherwise highly hazardous or immediately dangerous to life or health. The City ensures the safety and well-being of its employees and has determined that at this time there is no work performed that would require the use of a respirator to perform the essential functions of City job tasks (excluding Safety) in accordance with California Code of Regulations (CCR), Title 8, Section 5144. Employees shall refrain from entering any work area or shall immediately evacuate to a safe area and call the Fire Department when engineering controls are not sufficient to reduce respiratory hazards, or atmospheres exceed or fall below exposure limits established by OSHA. Employees shall not enter a work site or perform work until the hazardous situation has been mitigated and safe entry has been established by the Fire Department Hazmat Specialist Team or appropriate designated agency. However, the City shall consider the purchase and supply of air respirators for employees who want to voluntarily wear a respirator to increase their comfort level when working in a non- hazardous or dusty situation even though the amount of hazardous substance or atmospheric levels that said employees may be exposed to in the course of their duties do not fall outside the limits set by OSHA standards. In these voluntary requests, the department head in consultation with the Human Resources Department shall consider the request and, where appropriate, provide the employee(s) with a respirator to add an additional level of comfort and protection. Number: VI-1 Effective Date: A. Respirator Selection Each department shall determine which respirator is most appropriate for the contaminant's physical form and chemical state and the conditions under which the respirator will be used. All respirators will be selected on the basis of how it will increase the employee's level of comfort when working in a non-hazardous situation. Only MSHAINIOSHINLPA Certified respirators will be selected and used. Respirators must not, to any hazardous degree, impair an employee's vision or hearing or interfere with communication, which can often be critical in performing a job safely. B. Medical Evaluations Prior to the use of a respirator, the Human Resources Department shall be responsible for scheduling and coordinating respirator users to be medically evaluated by the City's designated licensed health care professional (LHCP). The medical evaluation shall be at no cost to the employee. Additional medical evaluations may be required when: 1. An employee reports medical signs or symptoms related to his or her ability to use a respirator. 2. The LHCP, department head or supervisor recommends re-evaluation. 3. Information from the respirator program, including observations made during fit testing and program evaluation, indicates a need_ 4. Change occurs in workplace conditions that may substantially increase the physiological burden on an employee C. Fit Testing Each employee shall be provided a fit test administered by an OSHA-accepted Qualitative fit test (QLFT) or a Quantitative fit test (QNFT) protocol, as contained in CCR, Title 8, Section 5144, Appendix A, Fit Testing Procedures (mandatory). The primary purpose of a fit test is to identify the specific make, model, style and size of the respirator that is best suited for each employee. The fit test provides an opportunity to check for problems with respirator use and reinforces respirator training by giving employees an opportunity to review the proper methods for putting on and wearing the respirator. Fit testing is required before the initial use of a respirator, whenever an employee uses a different respirator face piece, and at least once annually. An additional fit test is required whenever the employee reports changes or the employer or LCHP observes changes in the employee's physical condition that could affect respirator fit (i.e., facial scarring, dental changes, cosmetic surgery, or an obvious change in body weight). 2 Number: V1--7 Effective Date: Employees who voluntarily request the use of a respirator will receive no additional benefit from the City. Those employees who choose not to use a voluntary respirator will not be adversely impacted by the City. Under the voluntary program, there is no interest by the City whether an employee chooses to use or not use a voluntary respirator. D. Use of Respirators Once the respirator has been properly selected and fit tested, it is necessary to ensure that the respirator is used properly in the workplace. Employees and supervisors should be aware of the following situations that can compromise the effectiveness of respirators and jeopardize employees' protection. 1. The person wearing the respirator fails to properly perform seal checks. 2. The person wearing the respirator is also using personal protective equipment or other equipment that interferes with the face-to-face piece seal. 3. The respirator is not properly repaired, and its defective parts are not replaced. 4. Modifications are made to the respirator, or non-approved replacement parts are used. Employees who have facial hair or any condition that interferes with the face-to face piece seal or valve function may not use tight-fitting respirators- E. Maintenance and Care of Respirators Each department shall designate a staff responsible for the maintenance and care of the department's voluntary respirators. The designated staff shall ensure each respirator user is provided with a respirator that is clean, sanitary, and in good working order. To ensure that the respirator remains serviceable and delivers effective protection, each department shall have a Respiratory Protection Safety Equipment Maintenance Program in place before respirators are used in the workplace. All maintenance programs are required to include information about: 1. Cleaning and disinfecting procedures 2. Proper storage 3. Inspections for defects before each use and during cleaning of a respirator 4. Repair methods. Cleaning and disinfecting respirators shall be in accordance with the following intervals: 1. Exclusive use respirators — as often as necessary to maintain a sanitary condition. 2. Shared respirators— before being worn by different persons. 3 Number: VI-1 Effective Date: 3. Emergency-use respirators —after each use. 4. Respirators used in fit testing and training —after each use. Training Respirator users shall be instructed and trained in the proper use and limitations of respirators. Each user shall be trained and must demonstrate an effective knowledge in the following areas: 1. How improper fit, use, or maintenance can compromise the protective effectiveness of the respirator. 2. The capabilities and the limitations of the respirator. 3. How to inspect, put on, remove, and use the respirator and how to check the seals. 4. Procedures for maintaining and storing a respirator. 5. Recognition of the medical signs and the symptoms that may limit or prevent an employee's effective use of a respirator. 6. General requirements of the respirator regulation. An employee must be trained before he or she can use a respirator unless proof of acceptable training within the past twelve (12) months can be provided. Retraining is required at least annually and when workplace conditions change, when new types of respirators are used, or when inadequacies in the employee's knowledge or use of respirators indicate a need for more training. PROCEDURE: Responsibility Action Employee 1. Refrain from entering any hazardous work area or immediately evacuate to a safe area and call the Fire Department when engineering controls are not sufficient or atmospheres fall or exceed exposure limits established by OSHA. 2. Request a voluntary respirator when there is a concern of comfort. Department Head 3. In consultation with the Human Resources Department, considers employee's(s') request and if approved, coordinates 4 Number: VI-1 Effective Date: medical evaluation with Human Resources Department. Human Resources Department 4. Provides necessary examination questionnaire and medical forms to employee and schedules medical evaluation with the City's designated licensed health care professional. Department Head or designee 5 Coordinates a fit test administered pursuant to an OSHA-accepted Qualitative fit test (QLFT) or a Quantitative fit test (QNFT) protocol 6_ Develops a Respiratory Protection Safety Equipment Maintenance Program and designates staff responsible for the maintenance, care, logging and tracking of each respective department's respirators. Department Designee 7. Ensure that each respirator user is provided with a respirator that is clean, sanitary, and in good working order. B. Ensure that the respirator remains serviceable and delivers effective protection. 9. Ensure that each respirator user receives a copy of the department's Respiratory Protection Safety Equipment Maintenance Program and sign for its receipt. Employee 10. Reads and follows all instructions provided under the Department's Respiratory Protection Safety Equipment Maintenance Program on use, maintenance, cleaning and care, and warnings regarding the respirators' limitations. 11. Keeps track of respirator so that he/she does not mistakenly use someone else's respirator. 12. Participates in annual fit testing and training. 5 k , rl } RECEIVED EIVED JULRECEIVED JUL 2 2 2015 STAFF UL 2 9 2015 REPORT VERNON POLICE DEPARTMENT CITY AW491fJI STRATI CN CITY CLERK'S OFFICE DATE: August 4, 2015 TO: Honorable Mayor and City Council FROM: Daniel Calleros, Police Chief fX, RE: Donation of 2005 Chevy Tahoe to the City of San Fernando Police Department Reserve Officer Program Recommendation A. Find that approval of the proposed donation is exempt under the California Environmental Quality Act (CEQA) in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have an effect on the environment. B. Authorize the donation of a surplus 2005 Chevy Tahoe Patrol Vehicle, to be conveyed to the City of San Fernando Police Department Reserve Officer Program. C. Enter into a donation and release agreement, in substantially the same form as submitted herewith, with the City of San Fernando Police Department, to use and retain as needed by the Reserve Police Officer Program. Back round The Vernon Police Department ("VPD") conducted an assessment of the patrol vehicle fleet and identified patrol unit #92, a 2005 Chevy Tahoe, for surplus. The patrol vehicle has been in use for patrol purposes for well over ten years and surpassed the 100,000 mileage range . Although the patrol vehicle has accumulated wear and tear over the years given the 24/7 use, it is suitable for refurbishing purposes. Staff from the City of San Fernando Police Department Reserve Officer Program expressed interest in utilizing the surplus vehicle for refurbishing purposes. The reserve officer program is experiencing a shortage of patrol vehicles and has limited funding to purchase new patrol vehicles. Page 1 of 2 The proposed donation of the surplus vehicle to the City of San Fernando Police Department Reserve Officer Program will serve as a municipal purpose and will provide the necessary resource to enhance the program given the limited funding for patrol vehicles. Once the patrol vehicle is refurbished, it will be utilized by reserve police officers assigned to patrol duties. Fiscal Impact There is no fiscal impact associated with the proposed donation. Attachment(s) None Page 2 of 2 RECEIVED RECEWED JUL 2 8 2015 JUL 2 9 2015 ""'"'" CITY ADMINISTRATION CITY CFERK'S OFFICF STAFF REPORT PUBLIC WORKS, WATER & DEVELOPMENT SERVICES DEPARTMENT DATE: August 4,2015 TO: Honorable Mayor and City Council FROM: Samuel Kevin Wilson Director of Public Works,Water & Development Services Originator: Lissette Melendez,Associate Engineer RE: 5-Year Capital Improvement Plan 2015-2020 Recommendation A. Find that review of the proposed 5-Year Capital Improvement Plan FY 2015-20 is not a project pursuant to the California Environmental Quality Act (CEQA) Guidelines section 15378(b) because such activity has no potential for resulting in any change (direct or indirect, physical or otherwise) in the environment, is purely administrative in nature and concerns general government fiscal activity that does not involve any commitment to any specific project; and B. Review and provide direction and comments regarding the proposed 5-Year Capital Improvement Plan. Background The Capital Improvement Plan (CIP) presents the City's proposed improvements projects for the next five fiscal years. The purpose of developing and biannually updating the 5-year capital improvement plan is to plan, prioritize and budget expenditures as well as to inform the community of upcoming projects in the City. Developed by the Public Works, Water and Development Services Department, the CIP is intended to be a flexible document that considers the City's needs of improvements to its infrastructure as well as strategic direction relating to funding for the proposed projects. The proposed improvements are divided into six categories including Street, Storm Drain, Sewer, Traffic, City Buildings, Bridges and Water. The estimated fiscal impacts of the proposed projects are outlined in the plan. Fiscal Impact Review of the 5-Year Capital Improvement Plan has no immediate fiscal impact. The plan prioritizes the infrastructure projects needed and anticipates the financial investment necessary to fund the projects. Attach ment(s) 1. 5-Year Capital Improvement Plan 2015-2020 City of Vernon Public Works, Water & Development Services • � Of ►rL� �`�awy �•Q a� g •+r �e + 4 ��iYEIT 1M��bi F 4305 Santo Fe Ave., Vernon,CA 90059 j. J 323-583-6811 Five-Year Capital Improvement Plan 2015-2020 Table of Contents Section Description Executive Summary ........................................................................... 1 1. Street Improvement Plan ........................................................................... 3 2. Storm Drain Improvement Plan .................................................................. 8 3. Sewer Improvement Plan .................................................................. 11 4. Traffic Signal Improvement Plan .................................................................. 13 5. Improvement of City Buildings .................................................................. 15 6. Bridge Improvement Plan .................................................................. 17 7. Water Improvement Plan ........................................................................... 19 8. Appendixes Appendix"A" — Paving History Map Appendix`B" — Fiscal Year Improvement Map Appendix"C" — Street Surface Evaluation 2015 Appendix "D" — Cost EgimtFestimates Appendix "B" — Water Improvements Details City of Vernon I Capital Improvement Plan 2015-2020 Executive Summary The Engineering Division proposes the following capital improvement expenditures for the five-year period of 2015-2020. The improvements are divided into six categories including Street, Storm Drain, Sewer, Traffic, City Buildings, and Bridges. The fiscal impacts are summarized in the table below. FIVE-YEAR CAPITAL IMPROVEMENT PLAN SUMMARY Pavement& Storm City Subtotal Adjusted Fiscal Year Concrete Drain Sewer Traffic Buildings Bridge per Year Subtotals for g P 5.0/o Inflation FY 2015-2016 $3,150,000 $324,600 $0 $255,000 $835,000 $277,745 $4,842,345 $5,084,462 FY 2016-2017 $2,650,000 $575,000 $0 $215,000 $620,000 $0 $4,060,000 $4,476,150 FY 2017-2018 $2,950,000 $715,000 $0 $200,000 $200,000 $0 $4,065,000 $4,705,746 FY 2018-2019 $3,480,000 $175,000 $0 $100,000 $150,000 $520,050 $4,425,050 $5,378,676 FY 2019-2020 $3,350,000 $175,000 $0 $100,000 $150,000 $802,900 $4,577,900 $5,842,689 Subtotal= $15,580,000 $1,964,600 $0 $870,000 $1,955,000 $1,600,695 $21,970,295 $25,487,723 Total Adjusted for $18 149 624 $2 238 532 $0 $985 491 $2 165 593 $1 948 482 $25 500 000 5.0%Inflation Avera e/ ear= 1 $3,630,000 $448,000 $0 $197,000 $433,000 $390,000 This report also includes information relating to the Water Division's five-year outlook as summarized below. FIVE-YEAR WATER CAPITAL IMPROVEMENT PLAN SUMMARY 2015-2016 $ 2,280,000.00 2016-2017 $ 1,380,000.00 2017-2018 $ 1,690,000.00 2018-2019 $ 1,730,000.00 2019-2020 $ 2,690,000.00 TOTAL: $ 9,770,000.00 City of Vernon I Capital Improvement Plan 2015-2020 5-Year CIP Distribution of Funds $36,895,582 (5%Inflation) Water 30.9% Pavement/Concrete Bridge 49.2% 5.3% City Buildings 5.9% Traffic Sewer Storm Drain 6.1% 2.7% 0% 2015-2020 FIVE YEAR CAPITAL IMPROVEMENT PROGRAM (5%Inflation Per Year) N $20,000,000 0 o $15,000,000 LU $10,000,000 U1 $5,000,000 LU W t $ of 5� eta �a� 4 �a Qa CATEGORY 2 015-2 02 0 FIVE YEAR CAPITAL IMPROVEMENT PROGRAM (5%Inflation Per Year) p $6,000,000 Ua $5,000,000 W $4,000,000 $3,000,000 2 $2,000,000 N $1,000,000 -141 W $_ FISCAL YEAR Note: Water estimates not included in the graph above City of Vernon I Capital Improvement Plan 2015-2020 Street Improvement Plan Sam— Fiscal Years 2015-2020 City of Vernon I Capital Improvement Plan 2015-2020 1.0 Street Improvement Plan 1.1 Introduction: Various factors shape the prioritization of the street improvement five-year plan including: • Safety Related Improvements Examples include bridges rehabilitations, trip hazards, and streets that have begun to pothole. Projects where safety becomes an issue have priority. • Pavement Management Pro_gram As part of a previously established Pavement Management Program(PMP) for all the City's streets, all City streets are surveyed bi-annually and the pavement inventory and pavement condition data is updated. Pavement maintenance and rehabilitation historical records have also been entered into the database. A pavement maintenance and rehabilitation(M&R)budget-needs analysis is performed and budgetary scenarios are analyzed. In April 2015, the City's Engineering Division completed the latest survey of all the City streets, which contains approximately 49.1 centerline miles. The pavement inventory and pavement condition data was updated. The updated data was used as the basis for the street improvement five-year plan where projects are selected for implementation and must be cost-effective from a lifecycle perspective. The recommendations listed in this section are based on this latest analysis. • Capital Improvement Funding Other factors that shape the street improvement five-year plan include strategic direction relating to Capital Improvement funding. Currently, this has been established at $4 to $5 million per year. From this amount, depending on other types of Capital Improvement Projects (such as buildings,bridges and sidewalk repair), funds will be allocated for street improvements. 1.2 Existing Conditions: The City of Vernon is responsible for the repair and maintenance of approximately 49.1 centerline miles of pavement, or 302 pavement sections. Table 1 below summarizes the lengths of the road network based on functional classes. Network Classification for the City of Vernon Functional Class Centerline Miles Lane Miles Arterial 15.8 57.3 Collector 13.5 41.2 Local 19.8 38.8 Total 49.1 137.3 City of Vernon I Capital Improvement Plan 2015-2020 ' The pavement condition index, or PCI, is a measurement of pavement grade or condition and ranges from 0 to 100. A newly constructed road would have a PCI of 100, while a failed road would have a PCI of 10 or less. The average PCI of the City's roads is 58. Table 2 gives a summary of the network pavement condition based on the April 2015 survey. Condition Category PCI Range Percent of Network Good 70-100 31.3% Fair 50-69 35.9% Poor 25-49 29.3% Very Poor 0-24 3.5% As shown in the above tables, pavement condition categories are determined by PCI. Following is a brief description of the various condition categories. Good: PCI—70 to 100.No distress to low severity weathering requiring no treatment or low severity weathering with linear cracking requiring a treatment such as slurry seal. Fair: PCI — 50 to 69. Low to moderate severity weathering with moderate cracking requiring a thin overlay or patch & slurry seal. Poor: PCI—25 to 49. Accelerated base deterioration requiring thick overlay. Very Poor: PCI—0 to 24. Badly deteriorated pavement requiring major rehabilitation. The Engineering Division goal is to obtain and maintain an average PCI rating of 75. 1.3 Rehabilitation Str4gZE. Though the current average condition of the City of Vernon's streets falls within the "Fair" section, there is a significant portion of the network that suffers from load-related distresses. In addition, there is currently a backlog of millions of dollars in maintenance. If these issues are not addressed, the quality of the road network will inevitably and rapidly decline. Furthermore, as the graph below shows,pavement life can deteriorate rapidly and subsequent rehabilitation costs can dramatically increase if maintenance strategies are not in place. (Cost per square yard) Excellent Preventive ........................ Maintenance Thin Overlay Thick Overlay Recons . Good —....—......._....................................._....................................................... Fair ............................................................................................................................................................................................... .....................—.... Poor .......................................................................................................................................................................................................................................................... Time The map on Appendix "A" shows the history of type of street improvement projects completed in previous years. City of Vernon I Capital Improvement Plan 2015-2020 1.4 Fiscal Impact The Pavement Management System established preliminary budgetary needs necessary to maintain an average pavement condition index(PCI)rating in the "Fair"range for$4 to $5 million per year including the estimated values to account for other items of work such as concrete, landscaping, etc. YEAR PAVEMENT&CONCRETE PROJECTS COST Slauson Ave.(Boyle-Downey) $1,200,000 Boyle Avenue(Slauson-City Limit) $300,000 Downey Rd.Resurfacing(LA River-Fruitland Ave.) $800,000 District Blvd. (250ft Sections E/O Atlantic) $100,000 2015-2016 Heliotrope District-City Limit $100,000 Citywide Concrete Repair 2015-2016 Phase I $50,000 Citywide Concrete Repair 2015-2016 Phase II $50,000 Citywide Crack Seal Repair 2015-2016 $50,000 Citywide Rubberized Slurry Seal Phase III $500,000 Subtotal $3,150,000 Soto St.Resurfacing(LA River-South City Limit) $2,000,000 2016-2017 Citywide Crack Seal Repair 2016-2017 $50,000 Citywide Rubberized Slurry Seal Phase IV $600,000 Subtotal $2,650,000 1st,2nd,53rd,54th,55th,56th,&57th $1,125,000 26th,30th,45th,46th,Hawthorne, Sierra Pine,Saint $1,175,000 Charles&Hampton 2017-2018 Citywide Concrete Repair 2017-2018 Phase III Citywide Rubberized Slurry Seal Phase V $600,000 Subtotal $2,950,000 Washington Blvd.Resurfacing(Within City Boundary) $1,700,000 Exchange Ave.&Everett Ave. $1,130,000 2018-2019 Citywide Concrete Repair(2019-2020)Phase IV $50,000 Citywide Rubberized Slurry Seal Phase VI $600,000 Subtotal $3,480,000 Bandini Blvd. (LA River-County Line) $1,250,000 2019-2020 Bandini Blvd. (Downey Rd-Bonnie Beach) $2,050,000 Citywide Concrete Repair(2019-2020)Phase V $50,000 Subtotal $3,350,000 TOTAL $15,580,000 Total Adjusted for 5.0%Inflation: $18,149,624 Average Per Year $3,630,000 The map in Appendix "B" illustrates the limits of the street improvement projects. City of Vernon I Capital Improvement Plan 2015-2020 • Fiscal Year RUBBERIZED SLURRY SEAL PROJECTS TotalBudget PHASE III $500,000 Vernon Ave. Alameda to Santa Fe 20t5-2016 38th St. Alameda to Santa Fe 49th St. Alameda to Santa Fe Malbur Way(Alcoa to Slauson) PHASE IV $600,000 Vernon Ave. Soto to Downe 2016-2017 Alcoa Ave. Fruitland to Slauson 37th St. Alameda to LA River PHASE V 7S600,000 2016-2017 Various Streets -; PHASE VI $600,000 2017-2018 Various Streets PHASE VII $600,000 2019-2020 Various Streets TOTAL $2,900,000 City of Vernon Capital Improvement Plan 2015-2020 2.0 Storm Drain AP4 r _ I Fiscal Years I I I CapitalCity of Vernon I 1 1 1 8 2.0 Storm Drain Improvement Plan 2.1 Introduction In 1969, a Storm Drain Master Plan (SDMP)was developed by the City of Vernon. This study investigated the total drainage area for the City. The capacity of all existing drains was reviewed and the deficiencies were evaluated. Also, new drainage systems were proposed where drainage conditions warrant. Although this SDMP is 46 years old, drainage patterns have not dramatically changed since then. Therefore, the 1969 SDMP continues to be used as a guide for the five-year plan. However, the City might choose to consider issuing a request for proposals to update the City's SDMP. 2.2 Improvement Strategy The new proposed storm drain segment on 57th Street shown on the table in Section 2.4 is the last of the drainage systems proposed by the Storm Drain Master Plan. This segment is illustrated on the map in Appendix`B" and shown on the table in section 2.4 below. 2.3 Studies for NPDES Structural Regional Best Management Practices The Municipal National Pollutant Discharge Elimination System(NPDES) Permit places an emphasis on coordination of resources and efforts between Permittees such as integrated watershed planning. In an effort to comply with the Municipal NPDES Permit the City of Vernon joined in with neighboring cities to prepare and submit planning documents to the Los Angeles Regional Water Quality Control Board. The objective of the planning documents is to identify structural and non- structural Best Management Practices (BMPs) and meet the goals of the NPDES program. The planning documents concluded that in order to meet the goals of the NPDES program the City must implement costly new pollutant source and watershed control measures (including Minimum Control Measures), Low Impact Development (LID) and Green Street projects, scientific studies, enforcement, and structural regional Best Management Practices (BMPs). Technical feasibility studies to determine the feasibility of the regional structural BMP projects is an essential component of the regional structural BMP projects identified in the planning documents. City of Vernon I Capital Improvement Plan 2015-2020 2.4 Fiscal Impact Using the quantities noted in the 1969 SDMP and today's construction unit prices, the following estimate was generated. City of Vernon Federal Funds& Fiscal Year STORM DRAIN PROJECTS Total Cost Matching Matching Gateway % Funds Cities Studies for NPDES Structural Regional BMPs $100,000 100% $100,000 LID BMPs Project-2 Treebox filters $149,600 27.3% $40,836 $108,764 2015-2016 Catch Basin Inserts $75,000 100% $75,000 $0 Subtotal $324,600 $324,600 $108,764 Soto St. -LID Streets (LA River-Fruitland) $400,000 100% $400,000 $0 2016-2017 Studies for NPDES Structural Regional BMPs $175,000 100% $175,000 $0 Subtotal $575,000 $575,000 57th Street Storm Drain Construction $540,000 100% $540,000 $0 2017-2018 Studies for NPDES Structural Regional BMPs $175,000 100% $175,000 $0 Subtotal $715,000 $715,000 2018-2019 Studies for NPDES Structural Regional BMPs $175,000 100% $175,000 $0 Subtotal $175,000 $175,000 2019-2020 Studies for NPDES Structural Regional BMPs $175,000 100% $175,000 $0 Subtotal $175,000 $175,000 Total $1,964,600 $1,964,600 $108,764 Total Adjusted for 5.0% Inflation: $2,238,532 Average Per Year $448,000 City of Vernon I Capital Improvement Plan 2015-2020 3.0 Sewer Improvement Plan i r � F ' �ttif•i y ^w "hMP .t. • � 'ram^��;., - �+ �f Fiscal Years 2015-2020 City of Vernon I Capital Improvement Plan 2015-2020 3.0 Sewer Improvement Plan 3.1 Introduction: In 2005, the City of Vernon completed improvements to the sewer network in the Central Manufacturing District with the installation of 6,000 linear feet of sewer. For future projects, the City will consider using the previously used method of utilizing trenchless manhole-to-manhole pipe lining& sectional linings (point repairs)with cured-in-place pipe (CIPP) in lieu of traditional excavate, remove and replace existing pipe method. The cost difference in methods is substantial. The City does not have any sewer improvement projects scheduled in the next five fiscal years. Fiscal Proposed Sewer Projects Cost Year 2015-2016 None $ - 2016-2017 None $ - 2017-2018 None $ - 2018-2019 None $ - 2019-2020 None $ - Total $ _ Total Adjusted for 5.0% Inflation $Average per year $ - City of Vernon I Capital Improvement Plan 2015-2020 4.0 Traffic Improvement Plan AM Fiscal Year 2015-2020 City of Vernon I Capital Improvement Plan 2015-2020 4.0 Traffic Improvement Plan 4.1 Introduction: The City retained Republic Intelligent Transportation Services, Inc. (ITS) to conduct a citywide condition survey of Vernon's Traffic Signal system. Based on the survey a prioritized list was developed of signalized intersections that need improvements and/or repairs. The table below shows the signalized intersections proposed to be improved within the next five fiscal years. The locations are also illustrated in the map shown in Appendix`B". 4.2 Fiscal Impact: FISCAL TRAFFIC IMPROVEMENT PROJECTS TOTAL YEAR I COST Intersection Improvements-Slauson @ Alcoa $30,000 Intersection Improvements-Bandini @ I-710 Ram $50,000 Intersection Improvements-Santa Fe @ 28th St. $50,000 2015-2016 Intersection Improvements-Downey Vernon $50,000 Sign Replacement Program-Section 2 $50,000 Warning Devices $25,000 Subtotal $255,000 Intersection Improvements-Soto @ Vernon $50,000 Intersection Improvements- Soto @ Leonis $40,000 2016-2017 Intersection Improvements-Soto @ Fruitland $50,000 Sign Replacement Program-Section 3 $50,000 Warning Devices $25,000 Subtotal $215,000 Intersection Improvements-Fruitland @ Pacific $50,000 Intersection Improvements-Pacific @ Leonis $50,000 2017-2018 Intersection Improvements-Bandini @ Sierra Pine $50,000 Sign Replacement Program-Section 4 $50,000 Subtotal $200,000 Intersection Improvements-Washington @ Hobart $50,000 2018-2019 Intersection Improvements-Various Intersections $50,000 Sign Replacement Program-Section 5 $50,000 Subtotal $100,000 Intersection Improvements-Bandini @ Sunol $50,000 2019-2020 1 Sign Replacement Program-Section 6 $50,000 Subtotal $100,000 Total $870,000 Total Adjusted for 5.0%Inflation $985,491 Average per year $197,000 City of Vernon I Capital Improvement Plan 2015-2020 ' 5.0 Improvements of City Building Facilities Fiscal Years 2015-2020 City of Vernon I Capital Improvement Plan 2015-2020 5.0 Improvements of City Building Facilities 5.1 Introduction: The City owns a variety of building facilities including, four fire stations, City Hall, and several housing units. City hall is comprised of the City Council Chamber, the police department, the public works warehouse, garage, and a two-story parking structure. While the City has staff to provide routine maintenance, there are significant improvements that are needed to preserve and retain the useful serviceability of the building faculties. The City of Vernon will be administering the following City Building Improvement Projects in the next 5 fiscal years. FISCAL CITY BUILDING PROJECTS TOTAL COST YEAR City Hall Main Roof $ 120,000 Fire Station Repairs $ 150,000 Remodel of Four Homes $ 450,000 2015-2016 —City Housing Various Improvements) $ 75,000 Paint City Hall Structure $ 40,000 Subtotal $ 835,000 Fire Station Repairs $ 150,000 Remodel of Three Homes $ 330,000 2016-2017 Seal Parking Structure Deck $ 100,000 City Hall Elevator-Electronics Replacement $ 40,000 Subtotal $ 620,000 Fire Station Repairs $ 150,000 2017-2018 Paint City Hall Structure $ 50,000 Subtotal $ 200,000 2018-2019 Fire Station Repairs $ 150,000 Subtotal $ 150,000 2019-2020 Fire Station Repairs $ 150,000 Subtotal $ 150,000 Total $ 1,955,000 Total Adjusted for 5.0%Inflation $ 2,165,593 Average per year $ 433,000 City of Vernon Capital Improvement Plan 2015-2020 • 6.0 Bridge Improvement Plan .11 Ain�v� rA1515nnnlYf IfrllP pfiT mii[ipku . i 1 Fiscal Years 2015-2020 City of Vernon I Capital Improvement Plan 2015-2020 6.0 Bridge Improvement Plan 6.1 Introduction: The City owns and maintains six of the fifteen bridges within the City limits. All the bridges in the City are inspected every two years by the County of Los Angeles Department of Public Works as in accordance with the law. The inspections report bridge conditions and ratings, which the City uses to prioritize bridge improvements. The following two bridges are scheduled to be rehabilitated during the next five years: 1. The Atlantic Blvd. Bridge over the Los Angeles River 2. The 26th Street Bridge over the Los Angeles River The City obtained Federal Funding for up to 88.53% of the proposed bridge improvement costs through the Highway Bridge Program (HBP). Authorized by the US Congress through the Safe, Accountable, Flexible, and Efficient Transportation Equity Act - A Legacy for Users (SAFETEA-LU), the HBP will help the City provide the necessary improvements needed to rehabilitate the Atlantic Blvd and 26th Street bridges. The planned construction time periods and costs of these bridges are shown in the table below as well as in the map in Appendix `B". Matching Funds Highway Fiscal Bridge Project Description Total Cost o Bridge Year /o City of Measure R Program Matching Vernon Funds Funds Atlantic Blvd.Bridge-Design $ 350,000 20.0% $ 70,000 $ 280,000 (over the LA River) 2015-2016 Atlantic Blvd.Bridge-R/W $ 1,811,200 11.47% $ 207,745 $ 1,603,455 (over the LA River) Subtotal $ 2,161,200 $ 277,745 $ 1,883,455 Atlantic Blvd.Bridge- $ 41217,000 11.47% $ 484,000 $ 3,733,000 2016-2017 Construction(over the LA River) Subtotal $ 4,217,000 $ 484,000 $ 3,733,000 Atlantic Blvd.Bridge- $ 81433,000 11.47% $ 967,000 $ 7,466,000 2017-2018 Construction(over the LA River) Subtotal $ 8,433,000 S 967,000 $ 7,466,000 Atlantic Blvd.Bridge- $ 81433,000 11.47% $ 348,000 $ 619,000 $ 7,466,000 Construction(over the LA River) 2018-2019 26th Street Bridge-Design& $ 1,500,000 11.47% $ 172,050 $ 1,327,950 R[W over the LA River Subtotal $ 9,933,000 $ 520,050 $ 619,000 $ 8,793,950 26th Street Bridge-Construction $ 7,000,000 11.47% $ 802,900 $ 6,197,100 2019-2020 (over the LA River) Subtotal $ 7,000,000 $ 802,900 $ 6,197,100 Total $31,744,200 $ 1,600,695 $2,070,000 $ 28,073,505 City of Vernon Capital Improvement Plan 2015-2020 4d r � � • • . • • • - 1 1 1 19 7.0 Water Improvement Plan 7.1 Introduction: The City of Vernon will be completing the following water improvements over the next five years. Appendix"D"highlights in detail the project listed in the table below. Fiscal Water Project Description Total Cost Year Equipping Well No.21 &Related Site Work $ 1,400,000 Well No. 11 Rehabilitation $ 260,000 Well No.20 Rehabilitation $ 260,000 Reservoirs 3-1,3-2&3-3 Rehabilitation-Engineering $ 100,000 2015-2016 Booster Pumps-Refurbish $ 90,000 Well No. 5-Destroy $ 100,000 Pump House 2 Exterior&Interior Refurbishment $ 40,000 Plant No.2&Well No. 19-Fence Replacement $ 30,000 Subtotal $ 2,280,000 Well No. 17 Rehabilitation-Well Pedestal $ 260,000 Well No. 15 Pump/Motor Replacement-Well Pedestal $ 130,000 Booster Pumps-Refurbish $ 90,000 2016-2017 Reservoirs 3-1,3-2&3-3 Rehabilitation $ 700,000 Design of Closed Water System Phase I $ 200,000 Subtotal $ 1,380,000 10 Million Gallon Reservoir Interior Rehabilitation $ 200,000 Reservoirs 2-1,2-2,2-3 Rehabilitation-Engineering $ 100,000 2017-2018 Booster Pumps-Refurbish $ 90,000 Closed Water System Phase I $ 1,300,000 Subtotal $ 1,690,000 Packers/Exchange/Downey-Pipeline Extension $ 100,000 Reservoirs 2-1,2-2,2-3 Rehabilitation $ 700,000 2018-2019 Booster Pumps-Refurbish $ 90,000 Closed Water System Phase Il $ 840,000 Subtotal $ 1,730,000 Booster Pumps-Refurbish $ 90,000 Plant No.4 Demolish two 500,000 Gal.Reservoir $ 100,000 2019-2020 Drill Production Well No.22 $ 2,000,000 Elevated tank Interior Rehabilitation $ 500,000 Subtotal $ 2,690,000 Total $ 9,770,000 City of Vernon I Capital Improvement Plan 2015-2020 APPENDIX 44 77 PAVING HISTORY MAP City of Vernon I Capital Improvement Plan 2015-2020 64 9 — — — — — � — c/TY OF Lp5 ANGELES < S ` r — ° 2 2 TH 66 5 `"J ` C/Tr OF LOS ANGELES 61 74 70 80 11 i 66 6 59 11 66 11 6 6 ` WASHIN070 BIVp �ZQI� —___ _ STREET g1 8 0© 92 _---- a 96 9 666075 n ` 72 ' ® 61 9 68 8 0 96 66 Ityl '9 6671 73 � rr F� 6 , pF cpMMERCE STREET 9 93 ET 37TH BAN 9 94 02 11 9 91 ❑77 9 6 9 9 60 83 53 04 9 9 81 93 o 0 61 94 80 ° 66 2 9 o 1 Ni 88 88 OB 81 93 6 96 BS 7 rc 0 0 94 0 84 97 66 9 0 68 9 CHARTER VERNON 'AVENUE P IFK: 68 µTM STR < 60 + ` ET 5 0 94 45TH 83 `• ? _ -11 OF coMMEac u a A � 66 95 8g 9 @ 9 PACKERS AVENU 46TH -TR' U ® ��rii 68 04 04 8 8 73 .983 P � STREET 80 0 � LEONIS �-7 o DISTRICT OB a6 08 °2 8 � 0 66 0 aT � g = BOULEVARD ti a5 p 6 71 96 T s nt-E n �90 68 81 Ll 67 �T ARD 193 � 93 84 ST'REEr '4�,� _ ^ 06 FR7LAND s — 1t UI — A—VENUE 98 63 s 63 93 I 0 14 06 84 1 84 65 3R ST I O ` ,��o�y aMN •r 63 o G� 3 c/ry pF 54TH STREET I MA rwppp 63 F 5 55TH STREET I V 94 so o ♦`sZ q ",�{ i�4,v I 56TH STREET — — — — — > �� 00, 41,y4eLY 1140J5 blKLLI 57TH STREET 83 70 I ` 82 SBTH STREET o AND ON SLAUSON AVE I SLAUSON AVENUE XX YEAR OF TREATMENT ? Y ® HEATER REMIXING R RESURFACING 1.5'-2'(NO LONGER USED) c/rr OF HUNT/NGTON PARK I I Q ® 5'-6 A.C. I C Z ® SLURRY SEALING 89 I II ® 8'-9'A.C. I 89 z ® 3'-4'A.C. I Z PETROMAT k RESURFACING ® SCALE IN FEET I 6 14 ® COLD IN PUCE 4' o z004®o I O I REVISIONS E, DATE PAVING HISTORY J CITY OF VERNON, CALIFORNIA APPENDIX " 77 FISCAL YEAR IMPROVEMENT MAP City of Vernon I Capital Improvement Plan 2015-2020 CITY OF LOS ANGELES STRU 1ION � ` r V TRAFFIC SIGNAL - - SEWER {01F vC. CITY OF LOS ANGELES zsTH STREET 2 26TH y• � RIDG ` - DES N& iW STORM DRAIN O WATER 201 -201 26iH � STREET � WASHINGTp1y � � TA ,t y TRAFFIC SIGNAL C, WASHINGTON O HOBART fG S4 28th&SANTSIGAAFE � •ELEVATED TANK REHAB 2018-2019 2015-2016 I I �i B<ly ROSS 30TH ST. n F-1 o -�% p CITY OF COMMERCE F� BANDINI n BOULEVARD � w�N/NGTOp FT= O 37TH STREET SIRE I. FIC SIGNAL BANDINI O SIERRA PINE 2017-2018 RAFFIC SIGNAL L FFlC SIGNAL j �OTO O VERNON &DOWNEY Lam, 2016-20,7 NO 3 I c 15 016 WELL{�11 ON I VERN( A PACIFIC so 45TH ST. 44TH ig=R¢ J z ZP Fw j O Q ° O �Ti 45TH STRE CITY OF COMMERCE W 45TH$T. U 7 2 i z ` PACKERS AVENUE IXCHANGE AVENUE TRAFFIC SIGNAL ¢ 4- < 0 46TH < STREET 46TH STREET BANDINI O SUN ` 4 ?� W j /per �Ey,� 2019-2020 p C A < < o ppJ 7AFFIC SIGNAL a m PAC�FI&SLED I )TOO LEONIS a 00 4 48TH 2017-2018 2018-2017 TRAFFIC SIGNN r 0 OFF 0 z LEONIS DISTRICT BANDINI y<' BOULEVARDD/N/ z 9 '^\ z U 5IKLLI < m \\ a f ' SS'iPREE1E " � 3�2_&3 _ 51 2017-201 iH a SIGNAL '^\•k r TRAFFIC D OTO O FRURLAND WELL�19 8 2016-2017 a 50��5 LE FRUffLAND AVENUE O�\ ! z c/rr aF BELL 3RD ST � 54TH STREET I 54TH STREET OF� I 3 MAYWOOO u 55TH STREET ` E sSTTt STREET WELL#21 56TH STREET srREEr 57TH STREET ,.GNr,NGrON < CAPITAL IMPROVEMENT PLAN WATER IMPROVEMENT PLAN 57TH OITY OF PARK STORM D z 56TH MEET I FY 2015-2016 • FY 2015-2016 F� � ANDERSON a � SIAUSON AVENUE SADBDN AVE FY 2016-2017 FY 2016-2017 AUSON O AL( CITY OF HUNT/NGTON PARK A IRA°FC SIGMA p FY 2017-2018 FY 2017-2018 F2 I FY 2018-2019 FY 2018-2019 MISCELLANEOUS PROJECTS N 2 2 FY 2019-2020 • FY 2019-2020• CITYWIDE CONCRETE REPAIR PHASES I, II, III & IV V "` • TRAFFIC CONTROL SYSTEM, LOS ANGELES COUNTY (2015-2016) °o CITY OF MA1w000 • CITYWIDE CRACK SEAL REPAIR (2015-2016) PAN LPN I t REVISIONS • CITYWIDE CRACK SEAL REPAIR (2016-2017) J U mvr 2015-2020 5-YEAR PLAN • CITYWIDE RUBBERIZED SLURRY SEAL PHASE III, IV, V & VI CAPITAL IMPROVEMENT PROGRAM APPENDIX 44 77 STREET SURFACE EVALUATION 2015 City of Vernon I Capital Improvement Plan 2015-2020 CITY OF VERNON STREET SURFACE EVALUATION 201 5 Created:6/7/11 Last u dated:7/7/2015 LEGEND PAVEMENT CONDITION SUMMARY Rating Street Type Surface Adjustment Factor Condition PCI Rating Percent of Network good: 70-100 A=Arterial AC=Asphalt Collector x 0.95 Good 70-100 34.0% fair: 50-69 C=Collector CONC=Concrete Arterial x 0.90 Fair 50-69 35.9% poor: 25-49 L=Local Concrete x 1.10 Poor 25-49 27.4% very poor: 0-24 P=Private Very Poor 0-24 2.7% Fiscal Year-Proposed Improvements Slurry Seal Rating Average: 61 2015-2016 2015-2016 Adjusted Rating Average: 59 2016-2017 2016-2017 2017-2018 6 2018-2019 2019-2020 SURFACE 2009 2010 2015 ADJUSTED STREET NAME TYPE FROM TO NOTES TYPE RATING RATING RATING 201 5 RATING 30th Street L AC Santa Fe Cul De Sac 40 25 20 20 Center gutter,not all street has sidewalk 46th Street L AC Cul De Sac St.Charles 40 35 20 20 55th Street L AC Santa Fe City Limit 40 40 20 20 cracking througout 56th Street L AC Santa Fe City Limit 25 20 20 20 cracking througout St.Charles L AC Vernon 45.th 40 30 20 20 St.Charles L AC 45th 46th 40 40 20 20 Heliotrope L CONC District South City Limit 30 30 20 22 Recent south frontage on the west side ingood condition(90) 45th Street L AC Hawthorne St.Charles 40 30 25 25 53rd Street L AC Santa Fe City Limit 30 25 25 25 54th Street L AC Santa Fe City Limit 35 30 25 25 57th Street L AC Anderson Santa Fe 45 45 25 25 Recent frontage area in good condition(90) 57th Street L AC Santa Fe City Limit 35 35 25 25 cracking througout Alleys L AC 45th Packers - 45 25 25 Hampton Avenue L AC Fruitland 49th 40 30 25 25 Hawthorne L AC 45th Vernon 40 30 25 25 Downey Road A AC City/County Boundary Vernon 45 45 30 27 Heavy rutting throughout this block (near Vernon) Downey Road A AC Vernon Charter 45 45 30 27 26th Street C AC 47+00 Sierra Pine 100 90 30 28.5 Atlantic Boulevard A AC Bridge 85 75 35 31.5 Everett Avenue L CONC District 49th 55 50 30 33 concrete street 25th Street C AC Railroad Track Santa Fe 70 70 35 33.25 - 26th Street C AC Sierra Pine Downey S.Rd 40 100 35 33.25 AC(75)around the RR tracks,concrete Bridge 26th Street C AC Downey S.Rd 85+00 30 100 35 33.25 1stStreet L AC Slauson 57th 40 40 35 35 2nd Street L AC Slauson Anderson 40 35 35 35 2nd Street L AC Anderson 57th 40 35 35 35 7/14/2015 K:\engineering\A.ENGINEERING\5yrPlan-Budget\5-Year Capital Improvements Plan\2015-2020 5-Year Plan\Street Surface Evaluation PCI-2015-Copy SURFACE 2009 2010 2015 ADJUSTED STREET NAME TYPE FROM TO NOTES TYPE RATING RATING RATING 201 5 RATING 50th Street L AC Soto Boyle 40 40 35 35 55th Street L AC Alameda Santa Fe 25 20 35 35 Heavy rutting on west Santa Fe approach,recent frontage area in good condition Alcoa Avenue L AC Vernon 44th 30 30 35 35 West side is good.Really bad at tracks. Alcoa Avenue L AC 44th 46th 45 45 35 35 Alcoa Avenue L AC 46th Leonis 45 35 35 35 Exchange Avenue L AC Downey Maywood 45 45 35 35 Exchange Avenue L AC Maywood Everett 45 40 35 35 Exchange Avenue L AC Everett Loma Vista 45 40 35 35 Sierra Pine L AC 26th Bandini 45 35 35 35 AC(75)on westside recently overlay.Rutting @ Bandini Intersection Downey Road A AC Charter Exchange 50 50 40 36 Heavy rutting throughout this block Downey Road A AC Exchange Leonis/District 45 45 40 36 Heavy rutting throughout this block Downey Road A AC Leonis/District 50th 75 75 40 36 Downey Road A AC 50th South City Limit 75 75 40 36 Slauson Avenue A AC Boyle Alcoa 45 40 40 36 Slauson Avenue A AC Alcoa Downey 45 40 40 36 Washington Blvd. A AC West City Limit West of Downey 65 50 40 36 AC(90)on southside recently overlay Washington Blvd. A AC West of Downey Bridge(underpass) 45 40 36 Washington Blvd. A AC Signalized driveway East City Limit 60 40 36 East of Downey,some potholes throughout the street 50th Street L CONC Gifford District 75 75 35 38.5 Concrete with lots of AC patches 45th Street L AC Cul De Sac-2 Downey 60 55 40 40 AC overlay on concrete 57th Street L AC Alameda 1st 30 25 40 40 North side streets(75) 57th Street L AC 1 st 2nd 30 25 40 40 Recent frontage area in good condition(90) 57th Street L AC 2nd Anderson 40 40 40 40 Recent frontage area in good condition(90) Alcoa Avenue L AC Leonis 50th 60 50 40 40 Alcoa Avenue L AC 50th Fruitland 65 50 40 40 Bad at tracks. Alcoa Avenue L AC Fruitland Slauson 65 50 40 40 Alcoa Avenue L AC Slauson Malburg 65 40 40 40 Soto Street A AC Bandini/37th Vernon 50 60 45 40.5 Boyle Avenue C AC Vernon 44th 65 60 45 42.75 Boyle Avenue C A Slauson South City Limit 45 35 45 42.75 Fruitland Avenue C AC Santa Fe Hampton 55 50 45 42.75 Few AC patches Maywood Avenue L CONIC District Fruitland 80 75 40 44 Concrete street with asphalt patches 38th Street A AC Alameda Ross 65 55 50 45 38th Street A AC Ross Irving 70 50 50 45 49th Street L AC Alameda Santa Fe 65 55 45 45 54th Street L AC Soto Bickett 45 45 45 45 54th Street L AC Bickett Boyle 50 45 45 45 60 50 45 Everett Court I L AC 49th Fruitland 55 50 45 45 Asphalt utility trench on CL 7/14/2015 K:\engineering\A.ENGINEERING\5yrPlan-Budget\5-Year Capital Improvements Plan\2015-2020 5-Year Plan\Street Surface Evaluation PCI-2015-Copy STREET NAME TYPE SURFACE FROM TO 2009 2010 2015 ADJUSTED NOTES TYPE RATING RATING RATING 201 5 RATING Loma Vista Avenue L AC Exchange District 50 50 45 45 Packers Avenue L AC 45th Downey 55 50 45 45 Private Soto Street A AC Vernon 44th 55 65 50 45 AC pavement significantly worse north of RR tracks Soto Street A AC 44th 46th 70 65 50 45 Washington Blvd. A AC Bridge Signalized driveway 55 45 50 45 Fruitland Avenue C AC Hampton Pacific 65 60 50 47.5 AC patch on south side of street. 38th Street A AC Irving Santa Fe 75 50 55 49.5 Bandini Bou A AC Bride Sierra Pine 65 49.5 Soto Street A AC 46th Leonis 60 55 49.5 Sutting S/B lanes Soto Street A AC Leonis 50th 65 55 49.5 48th Street L CONIC Corona District 55 45 45 49.5 Concrete with AC patches 52nd Street L CONIC Atlantic Heliotrope - 25 45 49.5 - Everett Avenue L CONC North City Limit Fruitland 50 50 45 49.5 concrete and AC 27th Street L AC City Limit Santa Fe 55 35 50 50 52nd Drive L AC Alameda Santa Fe 55 55 50 50 Malburg Way L AC Slauson Alcoa 65 60 50 50 Maywood Avenue L AC North Street End Charter 45 1 40 50 50 51st Street C AC Alameda Santa Fe 55 55 55 52.25 Boyle Avenue C AC 44th 46th 45 55 52.25 Boyle Avenue C AC 46th Leonis 70 70 55 52.25 Vernon Avenue C AC Soto Boyle 70 65 55 52.25 Patches due to recent frontage improvements 37th Street A AC Alameda Ross 70 70 60 54 37th Street A AC Ross Irving 70 70 60 54 oulevard A AC Beach 70 60 60 Bandini Boulevard A AC Bonnie Beach Sunol 90 65 60 54 Rutting on Eastboand left turn lane into Sunol Bandini Boulevard A AC Sunol Ayers 85 75 60 54 Lines cracking throughout Bandini Bandini Boulevard A AC Ayers Atlantic 80 60 54 Rutting on Eastboand lanes in front of Fire Station No.4 Santa Fe Avenue A AC N.City Limit 27th 75 70 60 54 Santa Fe Avenue A AC 27th 28th 75 70 60 54 Santa Fe Avenue A AC 28th 30th 75 70 60 54 Santa Fe Avenue A AC 30th 37th 75 70 60 54 Santa Fe Avenue A AC 37th 38th 75 70 60 54 Rutting on Northbound lane @ 37th intersection Santa Fe Avenue A AC 38th Vernon 75 70 60 54 Rutting on Northbound lane @ 38th intersection Santa Fe Avenue A AC Vernon Pacific 80 1 70 60 54 Rutting and cracking at north and south approaches Santa Fe Avenue A AC Pacific 48th 75 70 60 54 Pothole in southbound lane just south of pacific Santa Fe Avenue A AC 48th 49th 80 70 60 54 Santa Fe Avenue A AC 49th 51 st 80 70 60 54 Santa Fe Avenue A AC 51st Fruitland 80 70 60 54 Santa Fe Avenue A AC Fruitland 52nd 80 70 60 54 Santa Fe Avenue A AC 52nd 55th 80 70 60 54 7/14/2015 K:\engineering\A.ENGINEERING\5yrPlan-Budget\5-Year Capital Improvements Plan\2015-2020 5-Year Plan\Street Surface Evaluation PCI-2015-Copy SURFACE 2009 2010 2015 ADJUSTED STREET NAME TYPE FROM TO NOTES TYPE RATING RATING RATING 201 5 RATING Santa Fe Avenue A AC 55th 57th 80 70 60 54 Soto Street A AC 50th Fruitland 70 60 54 Rutting at Fruitland Intersection Soto Street A AC Fruitland 54th 55 100 60 54 Soto Street A AC 54th South City Limit 100 60 54 27th Street L AC Santa Fe Cul De Sac 60 60 55 55 48th Street L AC Alameda Santa Fe 80 75 55 55 50th Street L AC Loma Vista Corona 60 60 55 55 Minerva L AC City Limit 26th 60 60 55 55 Ross Street L AC Alameda 37th 65 60 55 55 Ross Street L AC 37th 38th 70 60 55 55 Ross Street L AC 38th Cul De Sac 65 60 55 55 Seville Avenue L AC Leonis Blocked/gate 70 70 55 55 49th Street L CONIC Corona Gifford 75 75 50 55 Mostly concrete with AC patches 49th Street L CONIC Gifford District 80 80 50 55 Concrete with heavy cracking.AC at 49th and District Gifford Avenue L CONIC District 49th 55 55 50 55 Few bad panels Gifford Avenue L CONIC 49th 50th 55 50 50 55 Concrete with poor AC portions at tracks Gifford Avenue L CONC 50th Fruitland 55 50 50 55 Vernon Avenue C AC Boyle Alcoa 65 60 60 57 Alcoa approach(55) Vernon Avenue C AC Alcoa Downey 65 50 60 57 37th Street A AC Irving Santa Fe 70 70 65 58.5 37th Street A AC Santa Fe 38th 90 75 65 58.5 37th Street A AC 38th Seville 90 75 65 58.5 37th Street A AC Seville Soto 90 75 65 58.5 concrete intersection @ 37th St&Soto St Atlantic Boulevard A AC Bridge District 75 75 65 58.5 Atlantic Boulevard A AC District South City Limit 90 85 65 58.5 Ba vard A a 65 65 58.5 Soto Street A AC&CONIC Bridge 50 55 65 58.5 28th Street L AC Santa Fe Cul De Sac 55 55 60 60 44th Street L AC Soto Boyle 55 55 60 60 45th Street L AC Seville Cul De Sac-1 60 60 60 60 52nd Street L AC Santa Fe Malburg 60 55 60 60 South side of Street Charter Street L AC Downey Exchange 70 60 60 60 Asphalt with various patches Saco L AC End of Street 37th 60 60 60 60 Fruitland Avenue C AC Loma Vista Corona 40 30 65 61.75 Fruitland Avenue C AC Corona Gifford 40 30 65 61.75 Fruitland Avenue C AC Gifford District 40 30 65 61.75 38th Street A AC Santa Fe 38th Street 75 70 63 Alameda Street A AC 25th 27th 75 75 70 63 Alameda Street A AC 27th Ross 75 75 70 63 Alameda Street A AC Ross 37th 75 75 70 63 7/14/2015 K:\engineering\\.ENGINEERING\5yrPlan-Budget\5-Year Capital Improvements Plan\2015-2020 5-Year Plan\Street Surface Evaluation PCI-2015-Copy STREET NAME TYPE SURFACE FROM TO 2009 2010 2015 ADJUSTED NOTES TYPE RATING RATING RATING 201 5 RATING Alameda Street A AC 37th 38th 75 75 70 63 Alameda Street A AC 38th Vernon 75 75 70 63 Atlantic Boulevard A AC Bandini Bridge 75 70 70 63 Concrete/AC intersection at Bandini Bandini Boulevard A AC Atlantic East City Limit 90 70 63 Soto Street A AC Bridge Bandini/37th 50 55 70 63 44th Street L AC Boyle Alcoa 60 60 65 65 45th Street L AC Pacific Seville 50 45 65 65 Appro.50'section of allegator cracking. 46th Street L AC Pacific Seville 70 65 65 65 Rocks starting to show,but good contidion overall. 49th Street L AC Santa Fe w/o Tracks 70 50 65 65 49th Street L AC Tracks(included) Hampton 65 50 65 65 Really poor condition between 6 tracks 49th Street L AC Hampton Pacific 45 45 65 65 Middle of street looks newer than rest 50th Street L AC Boyle Alcoa 50 45 65 65 No gutter on north&portions of south side. Anderson Street L AC 2nd 57th 55 55 65 65 Chambers L AC Hampton Pacific 50 40 65 65 center concrete swale Hampton Avenue L AC 49th Chambers 40 40 65 65 Centerline gutter.No gutter on west side Irving Street L AC 37th 38th 65 65 65 65 25th Street C AC Alameda Railroad Track 50 35 70 66.5 26th Street C AC Ayers Atlantic 100 70 66.5 Fruitland Avenue C AC Pacific Seville 90 65 70 66.5 Alameda Street A AC Vernon 48th 80 80 75 67.5 Alameda Street A AC 48th 49th 80 80 75 67.5 Alameda Street A AC 49th 51st 80 80 75 67.5 Alameda Street A AC 51st 52nd 80 80 75 67.5 Alameda Street A AC 52nd 57th 80 80 75 67.5 Alameda Street A AC 57th Slauson 80 80 75 67.5 Utility Patch @ Intersection Bandini Boulevard A AC Soto Bridge 60 50 75 67.5 concrete intersection @ 37th St&Soto St 46th Street L AC Seville Soto 65 65 70 70 50th Street L AC Alcoa Downey 75 75 70 70 No gutter on south side 52nd Street L AC Malburg East City Limit 50 50 70 70 Furlong Place L AC Vernon Cul De Sac 60 60 70 70 Indiana Avenue L AC 26th Bandini 100 90 70 70 Line crack showing along AC join Irving Street L AC 38th End of Street 75 70 70 70 Malabar Street L AC Fruitland South City Limit 55 55 70 70 Seville Avenue L AC Vernon 45th 55 55 70 70 Seville Avenue L AC 45th 46th 60 50 70 70 Seville Avenue L AC 46th Leonis 60 50 70 70 26th Street C AC Join 26th St Project Indiana 30 100 75 71.25 Multiple cracks in front of BNSF driveway 26th Street C AC Bonne Beach Ayers 50 100 75 71.25 Multiple cracking 7/14/2015 K:\engineering\A.ENGINEERING\5yrPlan-Budget\5-Year Capital Improvements Plan\2015-2020 5-Year Plan\Street Surface Evaluation PCI-2015-Copy STREET NAME TYPE SURFACE FROM TO 2009 2010 2015 ADJUSTED NOTES TYPE RATING RATING RATING 201 5 RATING District Boulevard C AC Downey Maywood 70 70 75 71.25 Recently resurfaced District Boulevard C AC Maywood Everett 70 70 75 71.25 - District Boulevard C AC Everett Loma Vista 90 90 75 71.25 Bleeding at intersection District Boulevard C AC Loma Vista Corona 90 90 75 71.25 District Boulevard C AC Corona Gifford 90 90 75 71.25 District Boulevard C AC Gifford Atlantic 90 90 75 71.25 Rutting at District Leonis Boulevard C AC Pacific Seville 90 85 75 71.25 Small hairlines cracks Leonis Boulevard C AC Seville Soto 90 85 75 71.25 Small hairlines cracks Leonis Boulevard C AC Soto Boyle 85 85 75 71.25 Small hairlines cracks Leonis Boulevard C AC Boyle Alcoa 85 85 75 71.25 Small hairlines cracks Leonis Boulevard C AC Alcoa Downey 85 85 75 71.25 Small hairlines cracks Vernon Avenue C AC Alameda Hawthorne 80 60 75 71.25 Rutting at Alameda Intersection Vernon Avenue C AC Hawthorne St.Charles 80 65 75 71.25 - Vernon Avenue C AC St.Charles Santa Fe 80 60 75 71.25 Rutting at Santa Fe Intersection District Boulevard L CONIC Tracks Heliotrope 90 90 65 71.5 AC(45)along south portion of street District Boulevard L CONIC Heliotrope East City Limit 80 80 65 71.5 Atlantic Boulevard A CONIC North City Limit Bandini 75 70 75 74.25 Downey Road A CONIC North City Limit 26th 45 30 75 74.25 Downey Road A CONIC 26th n Y oun y boundary 30 75 74.25 46th Street L AC Soto Boyle 60 55 75 75 46th Street L AC Boyle Alcoa 55 55 75 75 Few AC patches District Boulevard L AC Atlantic Tracks 90 90 75 75 26th Street C AC Indiana Bonne Beach 65 100 80 76 Concrete intersection at 26th and Bonne Beach Fruitland Avenue C AC Seville Soto 90 65 80 76 Vernon Avenue C AC Santa Fe Seville 70 65 80 76 Frontage improved areas(90) Vernon Avenue C AC Seville Soto 70 65 80 76 Ayers Avenue L AC 26th Bandini 100 85 80 80 Aligator cracking at driveway near 26th St Ayers Avenue L AC Bandini Sunol 100 90 80 80 Bickett Street L AC 54th South City Limit 55 45 80 80 Bonnie Beach Place L AC 26th Bandini 100 90 80 80 concrete intersection at Bandini Seville Avenue L AC 37th Vernon 50 45 80 80 Recently slurried 26th Street C AC 85+00 Join 26th St Project 35 100 85 80.75 Fruitland Avenue C AC Downey Maywood 90 90 85 80.75 Fruitland Avenue C AC Maywood Everett Ave 90 90 85 80.75 Fruitland Avenue C AC Everett Ave Everett Court 90 90 85 80.75 Fruitland Avenue C AC Everett Court Loma Vista 90 90 85 80.75 Some rutting at Loma Vista eastbound approach Bandini Boulevard A AC Bridge 60 55 90 81 Pacific Boulevard A AC Santa Fe 45th 90 85 90 81 Recently resurfaced Pacific Boulevard A AC 45th 46th 90 85 90 81 7/14/2015 K:\engineering\A.ENGINEERING\5yrPlan-Budget\5-Year Capital Improvements Plan\2015-2020 5-Year Plan\Street Surface Evaluation PCI-2015-Copy STREET NAME TYPE SURFACE FROM TO 2009 2010 2015 ADJUSTED NOTES TYPE RATING RATING RATING 201 5 RATING Pacific Boulevard A AC 46th Leonis 90 85 90 81 Pacific Boulevard A AC Leonis Fruitland 90 85 90 81 Soto Street A AC North City Limit 26th 55 50 90 81 Soto Street A AC 26th Bridge 55 50 90 81 Atlantic Boulevard A CONC North City Limit Bandini 35 85 84.15 Everett Avenue L AC Exchange District 65 60 85 85 Recently Slurried 48th Street L AC Loma Vista Corona 55 50 85 85 Some utility patches 49th Street L AC Everett Ave. Everett Court 45 45 85 85 49th Street L AC Everett Ct. Dekalb 80 75 85 85 49th Street L AC Dekalb Loma Vista 80 75 85 85 49th Street L AC Loma Vista Corona 75 75 85 85 Utility patches 50th Street L AC Corona Gifford 70 60 85 85 Harriett L AC City Limit 26th 25 100 85 85 Loma Vista Avenue L AC District 49th 85 80 85 85 Loma Vista Avenue L AC 49th Fruitland 85 80 85 85 Maywood Avenue L AC Exchange Tracks 65 55 85 85 Maywood Avenue L AC Tracks District 75 65 85 85 Sunol Drive L AC Bandini Ayers 100 90 85 85 Recently resurfaced 26th Street C AC Santa Fe Minerva 50 35 90 85.5 26th Street C AC Minerva Harriett 50 40 90 85.5 26th Street C AC Harriett Bridge 55 45 90 85.5 26th Street C AC Bridge 100 90 90 85.5 26th Street C AC Bridge Soto 100 90 90 85.5 26th Street C AC Soto 47+00 100 90 90 85.5 Pennington Way C AC 26th Bandini 100 90 90 85.5 Corona Avenue L AC District 48th 80 80 90 90 Corona Avenue L AC 48th 49th 80 80 90 90 Corona Avenue L AC 49th 50th 80 80 90 90 Corona Avenue L AC 50th Fruitland 80 80 90 90 49th Street L CONIC West of Everett Everett 25 15 85 93.5 concrete&asphalt Boyle Avenue C AC Leonis 50th 75 65 100 95 Boyle Avenue C AC 50th Fruitland 45 35 100 95 Boyle Avenue C AC Fruitland 54th 45 35 100 95 Boyle Avenue C AC 54th Slauson 45 40 100 95 Fruitland Avenue C AC Soto Boyle 90 65 100 95 Fruitland Avenue C AC Boyle Alcoa 60 60 100 95 Fruitland Avenue C AC Alcoa Downey 55 55 100 95 44th Street P Alcoa Downey Private Private - - De Kalb Private Seville Avenue L AC 50th Fruitland Street blocked at power plant. 7/14/2015 K:\engineering\A.ENGINEERING\5yrPlan-Budget\5-Year Capital Improvements Plan\2015-2020 5-Year Plan\Street Surface Evaluation PCI-2015-Copy APPENDIX 44 » COST ESTIMATES City of Vernon I Capital Improvement Plan 2015-2020 COST ESTIMATES $ 4.05 cost per square foot for general improvements $ 13.00 cost per square foot for concrete approach $ 50,000.00 per traffic signal Street Total Street SUBTOTAL Limits CL start CL end Width (ft) length(ft) Square Feet TOTAL COST DOWNEY LA River to Fruitland 3610 6916 46 3306 133,676 $ 541,387.80 $ 830,587.80 concrete Vernon, Leonis, Fruitland 18,400 $ 239,200.00 t.signal Vernon $ 50,000.00 SOTO STREET LA River to S/City Bdry 1900 8523 54 6623 323,242 $ 1,309,130.10 $ 1,856,330.10 concrete Vernon, Leonis, Fruitland 34,400 $ 447,200.00 t.signal Vernon, Fruitland $ 100,000.00 WASHINGTON W. Bdry to E. Bdry 0 938 70 938 50,060 $ 202,743.00 1735 5630 78 3895 303,810 $ 1,230,430.50 concrete Hobart 15,600 $ 202,800.00 $ 1,685,973.50 t.signal Hobart $ 50,000.00 SUB BANDINI LA River to County line 7200 10100 82 2900 237,800 $ 963,090.00 concrete Sierra Pine 16,400 $ 213,200.00 $ 1,226,290.00 t. signal Sierra Pine $ 50,000.00 BANDINI Downey to B. Beach 200 6130 78 5930 446,940 $ 1,810,107.00 concrete Bonnie Beach 15,600 $ 202,800.00 $ 2,012,907.00 $ 4,980,510.00 BANDINI Downey to 1-710 6130 9500 78 3370 247,260 $ 1,001,403.00 Atlantic to Pennington 9800 10900 78 1100 70,200 $ 284,310.00 $ 1,741,313.00 concrete Sunol, 1-710 Off-Ramp 31,200 $ 405,600.00 t. signal Sunol $ 50,000.00 BANDINI Atlantic to Pennington 9800 10900 78 1100 85,800 $ 347,490.00 $ 448,890.00 concrete Pennington 7,800 $ 101,400.00 SIERRA PINE 0 1300 40 1300 48,200 $ 195,210.00 concrete Bandini 3,800 $ 49,400.00 $ 244,610.00 TOTAL $ 9,598,011.40 1ST ST. Slauson to 57th 0 600 42 600 25,200 $ 102,060.00 2ND ST. Slauson to 57th 0 636 38 636 24,168 $ 97,880.40 26TH ST. Sta.47+00 to Sierra Pine 4700 5733 38 1033 39,254 $ 158,978.70 30TH ST. Santa Fe to Cul De Sac 0 700 42 700 29,400 $ 119,070.00 Sidewalk 50 700 8 650 45TH ST. Hawthorne to St. Charles 326 650 40 324 12,960 $ 52,488.00 46TH ST. Cul De Sac to St. Charles 0 485 40 485 19,400 $ 78,570.00 53RD ST. Santa Fe to City Limit 30 200 40 170 6,800 $ 27,540.00 54TH ST. Santa Fe to City Limit 30 200 40 170 6,800 $ 27,540.00 55TH ST. Alameda to City Limit 74 2600 40 2526 101,040 $ 409,212.00 56TH ST. Santa Fe to City Limit 30 185 40 155 6,200 $ 25,110.00 57TH ST. Alameda to City Limit 72 2550 40 2478 99,120 $ 401,436.00 SAINT CHARLES Vernon to 46th 0 650 38 650 24,700 $ 100,035.00 HAWTHORNE Vernon to 45th 0 326 38 326 12,388 $ 50,171.40 EXCHANGE Downey to Loma Vista 50 2400 42 2350 98,700 $ 399,735.00 EVERETT AVE. Exchange to District 0 750 56 750 42,000 $ 170,100.00 EVERETT AVE. District to Fruitland 0 1309 38 1309 49,742 $ 646,646.00 Concrete HAMPTON 49th to Fruitland 799 1813 38 1014 38,532 $ 156,054.60 APPENDIX 44 " WATER IMPROVEMENTS DETAILS City of Vernon I Capital Improvement Plan 2015-2020 Fiscal Year 2015-2016 SMURFIT WELL NO. 21 DESIGN SPECIFICATIONS AND PUMP STATION INSTALLATION The City took possession of a former industrial well, located at 2170 551h Street, and is seeking to convert it to a municipal water supply well. The City retained the services of Richard C. Slade &Associates, LLC (Slade) who performed a hydrogeological evaluation of the subject well. The evaluation consisted of a multi phase test pumping methodology to ascertain the downwell condition and to access the current production capacity and water quality. The Stage 1 Phase was performed utilizing a normal pumping sequence without the use of a packer. The initial test results of Stage 1 Phase indicated that the well had elevated levels of Volatile Organic Compounds (VOCs) that exceeded the Maximum Contaminate Levels (MCLs) for those constituents. In the Stage 2 Phase, a packer was inflated at 500 feet in order to isolate the upper set of perforations from the well. The test results of Stage 2 Phase determined that the VOC levels are well below established MCLs. The results of the hydrogeological evaluation were submitted to the California Department of Public Health (CDPH) for review. The CDPH findings concluded that the installation of an inflatable packer, combined with water quality monitoring, are reasonable measures to ensure that the subject well is suitable for potable use. Specifications for a fully functional pump station were completed by Cannon Engineering, Inc. in 2014. Construction will commence in 2015. ($1,400,000.00). a rt City of Vernon Capital Improvement Plan 2015-2020 �' Fiscal Year 2015-2016 WELL NO. 11 REHABILITATION Well No. 11 has experienced a decrease in its production capacity. Pump Check Pumping Systems ran a test on the well pump 2014. The results of the test indicated that Well No. 11 is operating inefficiently. The test results indicate the possibility of plugged perforations along the well-shaft and wear to the pump shaft, bowls and bearings. A video log will be performed to ascertain the condition of the well-shaft. The pump shaft,bowls and bearings will have to be inspected in order to determine the extent of the wear. ($260,000.00). �Ir IV WELL NO. 20 REHABILITATION Well No. 20 has experienced a decrease in its production capacity. Pump Check Pumping Systems ran a test on the well pump 2014. The results of the test indicated that Well No. 20 is operating inefficiently. The test results indicate the possibility of plugged perforations along the well-shaft and wear to the pump shaft, bowls and bearings. A video log will be performed to ascertain the condition of the well-shaft. The pump shaft,bowls and bearings will have to be inspected in order to determine the extent of the wear. ($260,000.00). f City of Vernon Capital Improvement Plan 2015-2020 �' Fiscal Year 2015-2016 INTERIOR& EXTERIOR RECOATING-RESERVOIRS 3-1, 3-2, & 3-3 ENGINEERING The City had an interior and exterior evaluation performed of Reservoirs 3-1, 3-2, and 3-3. The results of the evaluation indicated that both the interior and exterior coating are beginning to fail at each reservoir. In addition, the evaluation also recommended that a cathodic protection be installed to eliminate corrosive properties that are inherent in moist environments. Specifications will be developed to facilitate the rehabilitation of these reservoirs. ($100,000.00). REFURBISH BOOSTER PUMPS The booster pumps located at Booster Plants 1, 2, and 3 are in need of refurbishment. These pumps have been in service for many years and will be disassembled, inspected for wear, and refurbished. ($90,000.00). ti City of Vernon Capital Improvement Plan 2015-2020 �' FISCAL YEAR 2015-2016 DESTRUCTION OF PRODUCTION WELL NO. 5 The City looked into the feasibility of rehabilitating Well No. 5 in order to augment the Water Department's water production capabilities. The California Department of Public Health advised the City that it would not grant approval for placing this facility back into production until such time the City could produce a letter from a registered engineering firm stating that this well's method of drilling provides for equivalent protection to that of a sanitary seal. In this quest, the City hired Infrastructure Engineering Corporation(IEC)who performed an analytical review of this facility and concluded that it could not produce a letter supporting the merits of the project based on available data. IEC provided options that potentially could have provided for equivalent protection to that of a sanitary seal. However, these options were not cost effective and eliminated from consideration. The Public Works has recommended that this facility be destroyed. ($100,000.00). 4 t PUMP HOUSE 2 EXTERIOR AND INTERIOR REFURBISHMENT Pump House 2 was inspected in 2015 to access the condition of the interior and exterior structure. The inspection found that the exterior windows are in need of replacement and the exterior coating has failed; and that the interior coating has failed($40,000.00). � M NIL w � � .T 5� City of Vernon Capital Improvement Plan 2015-2020 �' FISCAL YEAR 2015-2016 FENCE REPLACEMENT PLANT NO. 2 AND WELL NO. 19 Sectionsof • and Well No. • were inspected in 2015to access their condition and determine what repairs will need to be facilitated to improve the appearance and security of the facilities. The inspection identified several section of fence at both facilities that will have to be replaced. 1 111 11 -;= -- - �L. , ra9F• 'i�ii Plant IF Well • City of • Capital • • 1 1 1 Appendix E FISCAL YEAR 2016-2017 WELL NO. 17 REHABILITATION AND WELL PEDESTAL MODIFICATIONS Well No. 17 has experienced a decrease in its production capacity. Pump Check Pumping Systems ran a test on the well pump 2014. The results of the test indicated that Well No. 17-is operating inefficiently. The test results indicate the possibility of plugged perforations along the well-shaft and wear to the pump shaft, bowls and bearings. A video log will be performed to ascertain the condition of the well-shaft. The pump shaft, bowls and bearings will have to be inspected in order to determine the extent of the wear. Additionally, the existing well pedestals are well below the required 18-inch pedestal height required in the California Department of Water Resources Water Well Standards. The pedestals will be raised in accordance with the Water Well Standards as part of this project. ($260,000.00). r L ' i S -------�--� 't WELL NO. 15 PUMP/MOTOR REPLACEMENT AND WELL PEDESTAL MODIFICATIONS Well No. 15 has experienced a decrease in its production capacity. Pump Check Pumping Systems ran a test on the well pump 2014. The results of the test indicated that Well No. 15-is operating inefficiently. The test results indicate the possibility of plugged perforations along the well-shaft and wear to the pump shaft, bowls and bearings. A video log will be performed to ascertain the condition of the well-shaft. The pump shaft, bowls and bearings will have to be inspected in order to determine the extent of the wear. Additionally, the existing well pedestals are well below the required 18-inch pedestal height required in the California Department of Water Resources Water Well Standards. The pedestals will be raised in accordance with the Water Well Standards as part of this project. ($260,000.00). City of Vernon Capital Improvement Plan 2015-2020 �' Fiscal Year 2016-2017 REFURBISH BOOSTER PUMPS The booster pumps located at Booster Plants 1, 2, and 3 are in need of refurbishment. These pumps have been in service for many years and will be disassembled, inspected for wear, and refurbished. ($90,000.00). i i r 1 INTERIOR & EXTERIOR RECOATING-RESERVOIRS 3-1, 3-2, & 3-3 REHABILITATION The City had an interior and exterior evaluation performed of Reservoirs 3-1, 3-2, and 3-3. The results of the evaluation indicated that both the interior and exterior coating are beginning to fail at each reservoir. In addition, the evaluation also recommended that a cathodic protection be installed to eliminate corrosive properties that are inherent in moist environments. ($700,000.00). City of Vernon Capital Improvement Plan 2015-2020 ' Fiscal Year 2016-2017 CLOSED WATER SYSTEM (DESIGN) The design of a closed water system will provide a degree of redundancy as it will allow the City to operate the water distribution system without the services of the Elevated Water Tank. ($200,000.00). -4611 Fiscal Year 2017-2018 10 MG BURIED CONCRETE RESERVOIR INTERIOR REHABILITATION The 10 MG Reservoir's interior was inspected by Harper & Associates Engineering, Inc. (Harper) in April of 2010. Harper's report concluded that moderate to severe corrosion exists on appurtenances and construction joints. The report recommends that the appurtenances receive an abrasive blast to remove the existing coating and have a new coating reapplied. The subject report also recommends that polyurethane sealants be applied to existing construction joints and that random tubercles be repaired. ($200,000.00). City of Vernon I Capital Improvement Plan 2015-2020 �' Fiscal Year 2017-2018 INTERIOR& EXTERIOR RECOATING-RESERVOIRS 2-1, 2-2, & 2-3 REHABILITATION -ENGINEERING The City had an interior and exterior evaluation performed of Reservoirs 2-1, 2-2, and 2-3. The results of the evaluation indicated that both the interior and exterior coating are beginning to fail at each reservoir. In addition, the evaluation also recommended that a cathodic protection be installed to eliminate corrosive properties that are inherent in moist environments. Specifications will be developed to facilitate the rehabilitation of these reservoirs. ($100,000.00). r REFURBISH BOOSTER PUMPS The booster pumps located at Booster Plants 1, 2, and 3 are in need of refurbishment. These pumps have been in service for many years and will be disassembled, inspected for wear, and refurbished. ($90,000.00). f rim 4 City of Vernon Capital Improvement Plan 2015-2020 �' Fiscal Year 2017-2018 CLOSED WATER SYSTEM (PHASE I) This Phase includes the communications system upgrade and SCADA system engineering and design for Booster Plant 2. The engineering and design portion includes PLC hardware and software installations, field instruments reviews and variable frequency drive (VFD) conversions. ($1,300,000.00). Y. f- 'a- �W Y Fiscal Year 2018-2019 PACKERS/EXCHANGE AVENUE & DOWNEY ROAD PIPELINE EXTENSION The Infrastructure Engineering Corporation(IEC) completed a Water Distribution System Hydraulic Analysis in January of 2006. At the conclusion of the analysis, it was determined that in order to increase the maximum fire flows sustainable at parcels in the southeastern portion of the distribution system, modifications to the distribution system waterlines would be needed. IEC recommended installing 70 linear feet of new 12" diameter pipeline, which will connect the 10" and 12" diameter pipelines at Packers Avenue and Downey Road to the 10" and 12" diameter pipelines at Exchange Avenue and Downey Road. The new pipeline will significantly increase the maximum fire flows associated with a majority of parcels in the Southeastern portion of the City's service area. ($100,000.00). lam i f i City of Vernon Capital Improvement Plan 2015-2020 �' Fiscal Year 2018-2019 INTERIOR& EXTERIOR RECOATING-RESERVOIRS 2-1, 2-2, & 2-3 REHABILITATION The City had an interior and exterior evaluation performed of Reservoirs 2-1, 2-2, and 2-3. The results of the evaluation indicated that both the interior and exterior coating are beginning to fail at each reservoir. In addition, the evaluation also recommended that a cathodic protection be installed to eliminate corrosive properties that are inherent in moist environments. ($700,000.00). FIT REFURBISH BOOSTER PUMP The booster pumps located at Booster Plants 1, 2, and 3 are in need of refurbishment. These pumps have been in service for many years and will be disassembled, inspected for wear, and refurbished. ($90,000.00). City of Vernon Capital Improvement Plan 2015-2020 �' Fiscal Year 2018-2019 CLOSED WATER SYSTEM (PHASE II) This phase includes the communications system upgrade and SCADA system engineering and design for Booster Plant 1. The engineering and design portion includes PLC hardware and software installations, field instruments reviews and variable frequency drive (VFD) conversions. ($840,000.00). I _ II •III Fiscal Year 2019-2020 REFURBISH BOOSTER PUMP The booster pumps located at Booster Plants 1, 2, and 3 are in need of refurbishment. These pumps have been in service for many years and will be disassembled, inspected for wear, and refurbished. ($90,000.00). I 5 � City of Vernon Capital Improvement Plan 2015-2020 �' Fiscal Year 2019-2020 WELL 20 -DEMOLISH TWO 500,000-GALLON RESERVOIRS—4755 DISTRICT BLVD The reservoirs at Well 20 have not been used in more than twenty-years and will be demolished due to their poor condition. The cost is estimated to be $100,000.00. i- - DRILL WATER PRODUCTION WELL NO. 22 A replacement well is needed to augment the City's ability to meet water demand requirements. Many of the City's existing inventory of wells will reaching the end of their useful life in the next decade. It is important to begin phasing in new wells in the future to insure production facilities are available to meet water demand conditions. ($2,000,000.00). ELEVATED TANK INTERIOR REHABILITATION The Elevated Tank's interior shell was inspected by Harper & Associates Engineering, Inc. (Harper) in April of 2010. The inspection report concluded that corrosion exists on the interior roof, lower shell, bowl, drywell, and riser pipe. The observed corrosion is a clear indicator that the existing coating is beginning to fail. Harper's report recommends that the interior coating be removed by abrasive blast cleaning and that a new coating be reapplied. The report also illustrated the need to retrofit the facility with hand-railings, new mesh screening, and fall prevention on all interior ladders. ($500,000.00). City of Vernon I Capital Improvement Plan 2015-2020 �' REC- FFIVEID } JUL 2 2C''5 RECEIVED fit*�- CITY CEERK� OFFICE JUL 2 2 2015 STAFF REPORT VERNON POLICE DEPARTMENT CITY ADMINISTRATION -//.�S) BATE: August 4, 2015 —tv TO: Honorable Mayor and City Council FROM: Daniel Calleros, Police Chief Pc- RE: Ordinances Granting U.S. Tow, Inc. and Mr. C's Towing of South Gate Inc., A Franchise Towing Services Agreement. Recommendation A. Find that approval of a services agreement with US Tow Inc. and Mr. C's Towing is exempt under the California Environmental Quality Act (CEQA) in accordance with Section 15061(b)(3), the general rule that CEQA only applies to projects that may have a significant effect on the environment; and B. Hold the first reading of, and subsequently adopt, the proposed Ordinance granting to U.S. Tow, Inc., a franchise towing services agreement; and C. Hold the first reading of, and subsequently adopt, the proposed Ordinance granting to Mr. C's Towing of South Gate, Inc., a franchise towing services agreement; and D. Authorize the Mayor to execute the franchise agreements on behalf of the City. Backeround On October 2, 2012, the City Council adopted Ordinance No. 1198, establishing a selection process and franchise agreement system for official police towing services. In addition, the ordinance set forth minimum requirements and performance standards for equipment, facilities, personnel, and services for each tow company providing as needed vehicle towing and storage services requested by the Vernon Police Department ("VPD"). The ordinance also established procedures for suspending or revoking tow companies that fail to meet the minimum standards, violate federal, state, or local laws, or for any cause which the VPD determines is in the public interest, necessary or general welfare for the contract to continue. Page 1 of 2 On March 19, 2015, the City Administrator authorized staff to issue a Request for Proposals ("RFP") seeking qualified licensed Tow Providers to enter into a franchise agreement to perform rotational police towing and storage services. The RFP specifically sought operators to furnish the VPD with licensed tow operations as may be required for a three (3) year period from the date of execution. The RFP was mailed to seven (7) local tow companies operating in the general area and was posted on the City's website. In addition, an RFP notice was published in the Vernon Sun news publication. The VPD received four (4) responses to the RFP. The four proposals were reviewed and assessed by an evaluation panel comprised of representatives from the VPD Administrative staff. Before conducting an assessment of each of proposal, two members of the evaluation panel conducted on-site inspections of each of the four tow companies. Each proposal was evaluated using the criteria set in the RFP. The following criteria was used in evaluating each proposal: Evaluation Criteria Weighting Experience 40% References 20% Responsiveness to the RFP, and quality and responsiveness 10% of the proposal Work Plan/Technical Description 30% After evaluating and rating the four proposals, the towing companies were ranked according to the scores of the evaluators. Based on the physical inspections, reference checks, and evaluation of the proposals, the evaluation panel is recommending the following two tow companies: US Tow Inc. and Mr. C's Towing as the top ranking companies: Company Rankin US Tow Inc. 1 Mr. C's Towing 2 HP Tow 3 Viertel's Official Police Garage 4 The City Attorney's Office has prepared a standard agreement for official police tow services. This agreement establishes the City's requirements and minimum performance standards, payment of fees, reporting requirements, and other terms and conditions related to vehicle towing and impound services for the VPD. The agreement is for a term of three (3) years. Fiscal Impact There is no cost associated with execution of a franchise tow services agreement. The towing services franchise does not increase the costs paid by vehicle owners, as these rates are fixed. Vehicle Code § 12110(b) allows a public agency to collect administrative or franchise fee to recover its actual and reasonable costs incurred in connection with its towing program. Attachments) None Page 2 of 2 ORDINANCE NO . 1231 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF VERNON GRANTING TO U.S . TOW, INC. , A FRANCHISE TOWING SERVICES AGREEMENT WHEREAS, the City of Vernon (the "City") is a municipal corporation and a chartered city of the State of California organized and existing under its Charter and the Constitution of the State of California; and WHEREAS, on October 2, 2012, the City Council of the City of Vernon adopted Ordinance No. 1198 adding Chapter 4B of the Vernon Municipal Code to establish a non-consensual franchise towing fee; and WHEREAS, on or about March 2015 , the Police Chief issued a Request for Proposals for the City' s Franchise Tow Fee Program; and WHEREAS, the City Council of the City of Vernon desires to grant a Franchise Towing Services Agreement to U. S . Tow, Inc . ; and WHEREAS, the City Council of the City of Vernon is authorized by City Charter Section 8 . 9 to grant a franchise in the City of Vernon to any person, firm, corporation, or other entity and to set terms, conditions, restrictions and limitations by ordinance. THE CITY COUNCIL OF THE CITY OF VERNON HEREBY ORDAINS: SECTION 1 : The City Council of the City of Vernon hereby finds and determines that the above recitals are true and correct. SECTION 2 : GRANT OF FRANCHISE. A non-exclusive franchise shall be, and the same is hereby granted by the City Council of the City of Vernon to U. S . Tow, Inc . , its lawful successors or assigns to provide official non-consensual police towing services to the Vernon Police Department . Said franchise is further described and depicted in the Franchise Towing Services Agreement, in substantially the same form as attached hereto as Exhibit A and incorporated herein by reference . SECTION 3 : FRANCHISE TERM. The franchise shall endure in full force and effect for three (3) years, subject to the terns and conditions of the Franchise Towing Services Agreement . SECTION 4 : FRANCHISE FEE. The grantee of the franchise, during the life thereof, will pay to the City five percent (5W) of the gross annual receipts of the grantee arising from the use, operation or possession of the franchise . SECTION 5 : VERIFIED STATEMENT OF GROSS RECEIPTS . The grantee shall file with the City Clerk of the City, within three (3) months after the expiration of the calendar year, or fractional calendar year, following the date of the granting of this franchise, and within three (3) months after the expiration of each calendar year thereafter, a verified statement showing in detail the total gross receipts for the grantee derived during the preceding calendar year, or such fractional calendar year, from the provision of official police towing services within the limits of the City. The grantee shall pay to the City within fifteen (15) days after the time for filing said statement, in lawful money of the United States, the aforesaid percentage of its gross receipt for the calendar year, or fractional calendar year, covered by said statement . Any neglect, omission or refusal by grantee to file said verified statement, or to pay said percentage at the times or in the manner hereinbefore provided, shall constitute grounds for the declaration of forfeiture of this franchise and of all rights of grantee hereunder. However, - 2 - grantee has the ability to cure under Section 12 . Further, the City is responsible for insuring that grantee has the appropriate financial institution information for electronic transfer of the franchise fee in a timely manner. Any delays caused by incorrect financial institution information shall not constitute grounds for the declaration of a forfeiture of this franchise . SECTION 6 : WRITTEN ACCEPTANCE REQUIRED. The franchise granted hereby shall not become effective until written acceptance thereof shall have been filed by grantee with the City Clerk. SECTION 7 : ABANDONMENT OF PRIOR FRANCHISES . The franchise granted by this Ordinance is in lieu of all other franchises, rights or privileges owned by the grantee, or by any successor of the grantee to any rights under the franchise, for providing official police towing services throughout the limits of the City of Vernon as such limits exist at the time of the granting of the franchise or as they may thereafter, except any franchise derived under Section 19 of Article IX of the Constitution as that section existed prior to the amendment thereof adopted October 10 , 1911 . The acceptance of the franchise granted by this Ordinance shall operate as an abandonment of all such franchises, rights, and privileges within the limits of City as such limits at any time exist, in lieu of which the franchise is granted by this Ordinance . SECTION 8 : EMINENT DOMAIN. The granting of the franchise shall not in any way impair or affect the right of the City to acquire the property of the grantee by purchase or condemnation, and nothing contained in this franchise shall be construed to contract away, modify or abridge either for a - 3 - term or in perpetuity the City' s right of eminent domain. SECTION 9 : VALUE OF FRANCHISE. By acceptance of the franchise, the grantee, for itself, its successors and assigns, agrees that in any proceeding of any character before any court, commission, administrative body, board of arbitration or other public authority, no greater value shall be placed upon the franchise in excess of the cost to the grantee of the necessary publication and any other sum paid by grantee to the City therefor at the time of acquisition. SECTION 10 : NONCOMPLIANCE. If the grantee of the franchise granted by this Ordinance fails, neglects, or refuses to comply with any of the provisions or conditions prescribed in this ordinance or the Franchise Act of 1937 , and does not within ten (10) days after written demand for compliance begin the work of compliance, and after such beginning does not prosecute the work with due diligence to completion, the City, by its City Council, may declare the franchise forfeited. The City may sue in its own name for the forfeiture of the franchise granted pursuant to this Ordinance, in the event of noncompliance with any of the conditions thereof by the grantee, its successors, or assigns . SECTION 11 : CONFORMITY TO RULES AND STATUTORY REQUIREMENTS . The grantee of the franchise granted by this Ordinance shall comply with all of the ordinances and rules adopted by the City Council of the City of Vernon in the exercise of its police powers and not in conflict with the paramount authority of the State. All work undertaken or performed pursuant to the provisions of the franchise shall be of the standard required by law, and by any other body or governmental authority having jurisdiction in the premises . Where not - 4 in conflict with State law, or other governmental authority having jurisdiction in the premises, tow services shall be performed in accordance with the rules and regulations and ordinances of the City. SECTION 12 : INDEMNIFICATION. The grantee shall indemnify and hold harmless the City, its officers, agents and employees, from all liability for damages proximately resulting from any operations under this franchise. SECTION 13 : ASSIGNMENT. Grantee shall not assign or transfer any interest in the franchise without the express prior written consent and approval of City Council . Any unauthorized assignment or transfer of Franchisee' s rights or obligations under this Agreement shall be null and void and shall constitute a material breach by Franchisee of this Agreement . SECTION 14 : PERFORMANCE BOND. (a) At the option of the City, grantee shall either (a) reduce or eliminate any deductibles or self-insured retentions with respect to the City, its elected officials, officers, employees, agents, representatives, attorneys, and volunteers; or (b) file with the City Clerk a corporate surety bond running to City and guaranteeing payment of losses and related investigations, claim administration and defense expenses . The bond shall be conditioned that grantee shall well and truly observe, fulfill and perform each term and condition of the franchise, and that in case of any breach of condition of the bond the amount of the penal sum therein shall be recoverable. If City elects option (b) above, Grantee shall file such bond within five (5) days after the adoption of this ordinance . (b) Grantee shall maintain the bond in full force and effect throughout the term of this franchise, at grantee ' s sole - 5 1. expense. The bond shall be issued by an admitted surety insurer and comply with the requirements of the Bond and Undertaking Law, codified in Code of Civil Procedure Sections 995 . 010 et seq. This franchise shall be considered a "license or permit" within the meaning of the Bond and Undertaking Law, solely for purposes of application of such law to the bonding requirements of this section. SECTION 15 : LIABILITY. The grantee of the franchise under this Ordinance shall be liable to the City for all damages proximately resulting from the failure of the grantee to well and faithfully observe and perform any provision of the franchise or any provision of the Franchise Act of 1937 . SECTION 16 : Repeal . Any ordinance or parts of an ordinance in conflict with this Ordinance are hereby repealed. SECTION 17 : Severability. If any chapter, article, section, subsection, subdivision, paragraph, sentence, clause, phrase, or word in this Ordinance or any part thereof is for any reason held to be unconstitutional or invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this Ordinance or any part thereof . The City Council hereby declares that it would have adopted this Ordinance and each chapter, article, section, subsection, subdivision, paragraph, sentence, clause or phrase thereof, irrespective of the fact that any one or more chapters, articles, sections, subsections, subdivisions, paragraphs, sentences, clauses, phrases or words be declared unconstitutional, or invalid, or ineffective . - 6 - SECTION 18 : Book of Ordinances . The City Clerk, or Deputy City Clerk, shall attest and certify to the adoption of this Ordinance and shall cause this Ordinance and the City Clerk' s, or Deputy City Clerk' s, certification to be entered in the Book of Ordinances of the Council of this City. The City Clerk, or Deputy City Clerk, shall cause this ordinance to be published or posted as required by law. SECTION 19 : Effective Date. This Ordinance shall go into effect and be in full force and effect at 12 : 01 a.m. on the thirty- first (31st) day after its passage . APPROVED AND ADOPTED this day of 2015 . Name : Title : Mayor / Mayor Pro-Tem ATTEST: City Clerk / Deputy City Clerk APPROVED AS TO FORM: Brian W. Byun, Deputy City Attorney - 7 - STATE OF CALIFORNIA ) ss COUNTY OF LOS ANGELES ) I, City Clerk / Deputy City Clerk of the City of Vernon, do hereby certify that the foregoing Ordinance, being Ordinance No. 1231 was duly and regularly introduced at a regular meeting of the City Council of the City of Vernon, held in the City of Vernon on Tuesday, August 4, 2015, and thereafter adopted at a meeting of said City Council held on Tuesday, _ by the following vote: AYES : Councilmembers : NOES : Councilmembers : ABSENT: Councilmembers : And thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon. Executed this day of 2015, at Vernon, California. City Clerk / Deputy City Clerk (SEAL) - 8 - EXHIBIT A CITY OF VERNON FRANCHISEE TOWING SERVICES AGREEMENT BY AND BETWEEN THE CITY OF VERNON AND U.S. TOW, INC. COVER PAGE Franchisee: U.S. Tow, Inc. Responsible Principal of Franchisee: Moshe Ben Dayan, PresidentJCEO Notice Information - Franchisee: U.S. Tow, Inc. 2119 East 25"' Street Los Angeles, CA 90058 Attention: Moshe Ben Dayan, President/CEO Phone: (213) 749-7100 Facsimile: (213) 749-0272 Notice Information - City: City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 Attention: Daniel Calleros, Police Chief Telephone: (323) 583-8811 ext. 114 Facsimile. (323) 826-1481 Commencement Date: No earlier than thirty-one (31) days after approval by City Council of City of Vernon of ordinance granting franchise to U.S. Tow, Inc. Termination Date: Three (3) years from Commencement Date, inclusive Consideration: Payment is made by Franchisee to City pursuant to Section 3 of this Agreement. Payment is made to Franchisee by City pursuant to Section 5 of this Agreement. Records Retention Period Three (3) years, pursuant to section 15.3 CITY OF VERNON FRANCHISEE TOWING SERVICES AGREEMENT BY AND BETWEEN THE CITY OF VERNON AND U.S. TOW, INC. This Agreement is made and entered into by and between the City of Vernon ("City"), a California charter City and California municipal corporation, and U.S. Tow, Inc. ("Franchisee"), a Police Towing Company with its principal place of business at 2119 East 25"' Street, Los Angeles, CA 90058 (collectively, the "Parties") to provide for towing services to the City. The Parties agree as follows: RECITALS WHEREAS, Franchisee shall provide police towing services to the City of Vernon as set forth in the Request for Proposal issued in or about March 2015, Exhibit A, and Franchisee's Proposal to the City ("Proposal') dated April 16, 2015, Exhibit B, both of which are attached to and incorporated into this Agreement, by reference. WHEREAS, pursuant to Chapter 413 of the Vernon Municipal Code, Franchisee has applied for a Police Towing Franchise ("Franchise"); and WHEREAS, the City Council has determined that Franchisee has demonstrated compliance with Chapter 413 of the Vernon Municipal Code and has agreed to comply with all provisions of that Chapter; and WHEREAS, it is required that City and Franchisee enter into this Franchise Towing Services Agreement ("Agreement") for police towing services in the City of Vernon; and WHEREAS, additional conditions have been imposed upon this grant of Franchise. NOW, THEREFORE, the Parties do hereby agree as follows: Section 1. GRANT OF FRANCHISE. Subject to approval by the City Council of the City of Vernon of an ordinance granting the franchise and to the requisite thirty-one (31) days' waiting period before such ordinance becomes effective, City grants to Franchisee a Police Towing Franchise authorizing Franchisee to engage in the business of Police Towing as set forth in chapter 413 of the Vernon Municipal Code in the City of Vernon and to use the public streets and rights of way for such purpose. This grant is pursuant to the City's Request for Proposal and to Franchisee's proposal for the Franchise. Franchisee is subject to the terms and conditions specified in Chapter 8.9 of the Charter of the City of Vernon, the provisions of Chapter 413 of the Vernon Municipal Code, the terms and conditions specified in all related resolutions, the terms and conditions of this Agreement, the representations and assurances in Franchisee's application for the Franchise. Section 2. TERM OF FRANCHISE. The term of this Franchise granted to Franchisee shall be for three (3) years, effective from thirty-one (31) days after the date upon which the City Council of the City of Vernon - 2 - approves the ordinance granting the Franchise (the "Effective Date") to the date that is three (3) years from the Effective Date, inclusive. Section 3. FRANCHISE FEES. 3.1 During the term of the Franchise, Franchisee shall pay a franchise fee to City in an amount equal to 5% of Franchisee's gross annual receipts arising from the use, operation or possession of the Franchise, which fees shall be assessed from the date on which the ordinance granting this Franchise became effective and in accordance with Section 413.8 of the Vernon Municipal Code and any Resolution adopted by the City Council and in such other amounts as are set forth in any subsequent resolutions that may be adopted by the City Council at any time during the term of the Agreement. 3.2 The Franchisee shall file with the City Clerk of the City, within three (3) months after the expiration of the calendar year, or fractional calendar year, following the date of the granting of this franchise, and within three (3) months after the expiration of each calendar year thereafter, a verified statement showing in detail the total gross receipts for the Franchisee derived during the preceding calendar year, or such fractional calendar year, from the provision of official police towing services within the limits of the City. The Franchisee shall pay to the City within fifteen (15) days after the time for filing said statement, in lawful money of the United States, the aforesaid percentage of its gross receipt for the calendar year, or fractional calendar year, covered by said statement. Any neglect, omission or refusal by Franchisee to file said verified statement, or to pay said percentage at the times or in the manner hereinbefore provided, shall constitute grounds for the declaration of forfeiture of this Franchise and of all rights of Franchisee hereunder pursuant to the procedures set forth in Sections 11 and 12 herein. However, Franchisee has the ability to cure. Further, the City is responsible for insuring that Franchisee has the appropriate financial institution information for electronic transfer of the franchise fee in a timely manner. Any delays caused by incorrect financial institution information shall not constitute grounds for the declaration of a forfeiture of this Franchise. 3.3 Franchisee shall timely pay all required franchise fees to: City of Vernon Attention: Finance Director 4305 Santa Fe Avenue Vernon, CA 90058 Each payment shall be accompanied by a written statement, verified by the Franchisee or a duly authorized representative of the Franchise, showing in such form and detail as the Finance Director of the City of Vernon may prescribe, the calculation of the franchise fee payable by the Franchisee and such other information as the Finance Director may require as material to a determination of the amount due. 3.4 The first payment of the franchise fee will be due on September 15, 2015, and payments shall be due monthly thereafter on the 15t' day of each month. 3.5 When Franchisee remits franchise fees to the City, such franchise fees shall be deemed timely paid only if delivered or postmarked on or before the due date. If fees are not timely paid, Franchisee shall be subject to suspension or termination of the Franchise pursuant to Section 14 of this Agreement and/or to any other penalties which may be - 3 - established and assessed by the City, including, but without limitation, late fees assessed at the rate of five percent (5%). Section 4. TOWING SERVICES. 4.1 Franchisee shall provide Police Towing services, as set forth in Exhibit A, which is the City's Request for Proposals for Official Police Tow Services, and which includes, but without limitation, strictly adhering to the eligibility requirements, operating regulations, fees schedules, standards for tow truck equipment, standard rules of operation, response time, inspection, information regarding new or terminated tow truck drivers, tow driver training, and as set forth in Exhibit B which is Franchisee's response to the City's Request for Proposals. All services by Franchisee shall comply will all provisions of federal, state and local law and regulation, including, but without limitation Chapter 4B of the Vernon Municipal Code. 4.2 Franchisee understands and agrees that, although the City is granting it a franchise as a police towing service, the City may requisition towing services from other service providers as set forth in Section 4B.12 of the Vernon Municipal Code, or if Franchisee is otherwise unavailable for any reason, in the reasonable discretion of the Vernon Chief of Police and including, but without limitation, suspension or termination of the Franchisee. Section 5. RATES, CHARGES AND PAYMENT. 5.1 The rates and charges for towing and storage in connection with this Franchise shall be established by the Franchisee. The prevailing rates prescribed by the Southern Division of the California Highway Patrol, the Los Angeles Police Department, and the Los Angeles County Sheriff will be considered when establishing these rates. The rate per impound shall be $140.00 and the storage charge shall be $40.00 per day, unless or until otherwise modified by the City. A sign showing the approved rates and charges shall be conspicuously posted in the Franchisee's tow office and shall be posted in a conspicuous place in the interior of each tow truck operated by Franchisee. Franchisee shall provide vehicle owners the option of payment by MasterCard and Visa. Franchisee must provide for after-hours releases of vehicles, and may collect an after-hour release fee. As part of the award of franchise the Franchisee will be requested to establish an after-hours release fee not to exceed '/z of the impound fee in addition to other established fees. Section 6. REPORTS. Franchisee shall file a monthly towing report with the Chief of Police along with payment of its monthly franchise fees. The report shall be submitted to: Vernon Police Department Attention: Police Chief 4305 Santa Fe Avenue Vernon, CA 90058 The report shall include the information required by Section 4B.10(H) of the Vernon Municipal Code for Franchisee and its subcontractors, certified as true and correct under penalty of perjury by a responsible owner or official of the Franchisee. -4 - Section 7. FRANCHISEE'S RECORDS. 7.1 The Franchisee shall maintain accurate and complete books and accounts of all revenues and income arising out of its operations under the Franchise and in a manner, which conforms to generally accepted accounting principles. Franchisee's books, accounts and records, arising out of or related to its operation under the Franchise, shall at all times be open to inspection, examination and audit by authorized officers, employees and agents of the City. Such records shall be kept at Franchisee's place of business shown in this Agreement for receipt of notices. 7.2 Franchisee shall require its subcontractors, if any, who perform Police Towing services in connection with the Franchise to keep and maintain books of account and other records showing all business transactions conducted by such subcontractors in connection with the Franchise. Franchisee agrees to use its best efforts to avoid duplication of reporting between Franchisee and its subcontractors. Section B. TOW VEHICLE AND DRIVER REPORTING, COMPLIANCE, AND IDENTIFICATION. 8.1 Franchisee shall maintain on file with the City, a complete and accurate listing of every vehicle operated by Franchisee for police towing services. Franchisee shall certify, in a form acceptable to City,that every such vehicle conforms with regional and State vehicle emission standards ("emission standards"), and shall provide documentation of compliance on written request of the City. Franchisee understands and agrees that failure to comply with emission standards may result in suspension, termination or non-renewal of a Franchise. 8.2 Every vehicle operated by Franchisee and for Police Towing services in the City shall bear the following identification: Franchisee's trade name, monogram or insignia, the Franchise vehicle number, together with Franchisee's telephone number painted on both sides of the vehicle. All lettering mentioned in this paragraph shall be not less than 2-1/4" in height and not less than 5/6" stroke. The Franchisee agrees to remove the Franchise vehicle number and all other information within 30 calendar days after the Franchise is terminated or the vehicle is sold, transferred or taken out of service. 8.3 Franchisee shall file with the Vernon Police Department, the name, address, date of birth, driver's license number, and all identification required of any tow unit driver working for Franchisee, whether as an employee or as a contractor, which information shall be filed not later than ten (10) business days following the effective date of employment or engagement. Franchisee shall also notify the Vernon Police Department within ten (10) business days of the following occurrences: the license suspension of any tow unit driver, and the end of employment, or engagement, of any tow unit driver with Franchisee. Section 9. INDEMNIFICATION OF CITY. 9.1 Franchisee shall indemnify and hold the City harmless from and against any and all loss, damages, liability, claims, suits, costs and expenses,fines, charges or penalties whatsoever, including reasonable attorney's fees, regardless of the merit or outcome of any such claim or suit, arising from or in any manner related to the services provided or business conducted under Chapter 48 of the Vernon Municipal Code or otherwise pursuant to this Agreement. - 5- 9.2 Franchisee shall indemnify the City, defend with counsel approved by the City, protect and hold harmless the City, its officers, employees, agents, assigns, and any successor or successors to the City's interest from and against all claims, actual damages (including but not limited to special and consequential damages), natural resources damage, punitive damages, injuries, costs, response, remediation and removal costs, losses, demands, debts, liens, liabilities, causes of action, suits, legal or administrative proceedings, interest, fines and charges, penalties and expenses (including, but not limited to, attorneys' and expert witness fees and costs incurred in connection with defending against any of the foregoing or in enforcing this indemnity) of any kind whatsoever paid, incurred or suffered by, or asserted against, the City or its officers, employees, agents or the Franchisee arising from or attributable to any repair, remediation, cleanup or detoxification, or preparation and implementation of any removal, remedial, response, or closure or other plan (regardless of whether undertaken due to governmental action) concerning any hazardous substance or hazardous waste at any place where the Franchisee stores or dispose of solid or hazardous waste. The foregoing indemnity is intended to operate as an Agreement pursuant to the Comprehensive Environmental Response, Compensation and Liability Act, 42 United States Code Section 9607, and California Health and Safety Code Section 25364, and any successor provisions, to insure, protect, hold harmless, and indemnify the City from liability. Section 10. INSURANCE REQUIREMENTS. 10.1 Franchisee shall, at its sole cost and expense, procure and maintain in full force and effect, throughout the term of this Agreement, inclusive of any renewal term granted by City, insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the services hereunder by the Franchisee, its agents, representatives, employees or subcontractors. Franchisee shall procure and maintain insurance policies of the types and meeting the requirements set forth below, and shall provide to the City a Certificate of Insurance, or other such evidence reasonably acceptable to the City, verifying the existence of such policies: 10.2 Minimum Scope of Insurance Coverage. Franchisee shall procure and maintain policies of insurance with minimum scopes of coverage AT LEAST as broad as the following: (a) Comprehensive Generai Liability Insurance. (b) Comprehensive Vehicle Liability Insurance. (c) Workers' Compensation Insurance as required by the State of California and Employer's Liability Insurance. 10.3 Minimum Limits. Vendor shall maintain insurance with minimum limits NO LESS THAN the following: (a) General Liability of Two Million Dollars ($2,000,000) for each occurrence and in the aggregate, combined single limit, against any bodily injury, death, personal injury, or property damage. In Comprehensive General Liability Insurance or other form in which a general aggregate limit is used, the general limit shall apply separately to this Agreement or the general limit shall be TWICE the required occurrence limit. - 6 - (b) Automobile Liability of One Million Dollars ($1,000,000) per accident for bodily injury and property damage. (c) Garage Keepers Legal Liability coverage with minimum limits of Two Hundred Fifty Thousand Dollars ($250,000) per occurrence. (d) Employer's Liability of One Million Dollars ($1,000,000) per accident for bodily injury or disease. (e) Worker's Compensation and Employer's Liability Insurance in an amount required by law. 10.4 Deductibles. Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, Franchisee shall either: (a) Reduce or eliminate such deductibles or self-insured retentions with respect to the City, its elected and appointed officials, officers, employees, agents, representatives, attorneys, and volunteers; OR (b) Procure a bond, guaranteeing payment of losses and related investigations, claim administration and defense expenses. Under this option, Franchisee shall file such bond within five (5) days after the adoption of the ordinance approving this Agreement. Franchisee shall maintain the bond in full force and effect throughout the term of the Franchise, at Franchisee's sole expense. The bond shall be issued by an admitted surety insurer and comply with the requirements of the Bond and Undertaking Law, codified in Code of Civil Procedure Sections 995.010 et seq. This franchise shall be considered a "license or permit'within the meaning of the Bond and Undertaking Law, solely for purposes of application of such law to the bonding requirements of this section. 10.5 Required Endorsements. All of the policies required by this Agreement shall contain, or be endorsed to contain, the following provisions: (a) City, its elected and appointed officials, officers, employees, agents, representatives, attomeys and volunteers shall be named as additional insured parties, and the policies shall specifically state that the coverage contained in the policies affords insurance pursuant to the terms and conditions as set forth in this Agreement. (b) The insurance coverage provided by the Franchisee shall be primary to any coverage available to the City. Any insurance or self-insurance maintained by City, its officers, officials, employees or volunteers shall be in excess of Franchisee's own insurance and shall not contribute with it. (c) The insurance policies shall contain no special limitations on the scope of protection afforded to the City, its elected and appointed officials, officers, employees, agents, representatives, attorneys or volunteers. Further, the policies shall expressly waive the right of subrogation against City, its elected and appointed officials, officers, employees, agents, representatives, attorneys or volunteers. - 7 - (d) Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to the City, its elected and appointed officials, officers, employees, agents, representatives, attorneys or volunteers. (e) The insurance coverage shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. (f) Each insurance policy required by this section shall be endorsed to state that coverage SHALL NOT be suspended, voided, and/or canceled by either party, and that there shall be no reduction in the amount of coverage or in the limits applicable thereto EXCEPT after thirty(30) days prior written notice has been given to the City, said written notice to be delivered by U.S. Certified Mail, Return Receipt Requested addressed to the City Attorney and City Finance Director. (g) In its sole discretion, the City may waive all or some portion of the above referenced insurance if such waiver is in writing and executed by City's Finance Director. 10.6 Required Insurance Rating. Any insurance policy required by this Agreement shall be placed with an insurer admitted in the State of California with a current A.M. Bests rating of NO LESS THAN B+:VII in the latest edition of Best's Insurance Guide. 10.7 Original Certificates Re uired. At all times during the term of this Agreement, Franchisee shall maintain on file with the City's Finance Director a certificate or certificates of insurance. Said certificate or certificates of insurance shall show that the aforesaid policies are in effect in the required amounts and shall contain each of the endorsements as set forth in Section 10.3. Franchisee shall, prior to commencement of work under this Agreement, file with the City Finance Director the original certificates effecting coverage required by this section of this Agreement. The endorsements are to be signed by the person authorized by that insurer to bind coverage on its behalf- The endorsements are to be received and approved by City before Franchisee commences operation under the terms of this Agreement 10.8 Failure to Maintain Required Insurance, Franchisee agrees that if it fails to keep the aforesaid insurance policies in full force and effect the City may, at its sole option, either (i) immediately terminate this Agreement or, (ii) ff insurance is available at a reasonable cost, the City may take out the necessary insurance and pay, at Franchisee's cost and expense, the premium thereon. Section 11. TERMINATION AND SUSPENSION. The City may terminate this Agreement, without cause, by giving the Franchisee thirty (30) days' written notice of such termination and the effective date thereof. The City may terminate this Agreement, with cause, by giving the Franchisee (10) days' written notice of such termination and the effective date thereof. Cancellation for cause shall be at the discretion of the City and shall be, but is not limited to, failure to supply the materials, equipment or service specified within the time allowed or within the terms, conditions or provisions of this Agreement. The Franchisee may not cancel this Agreement without prior written consent from the Vernon Chief of Police. - 8 - Section 12. TEMPORARY SUSPENSION. In addition to termination or suspension as set forth in Section 11, above, the Chief of Police may temporarily suspend any Franchisee without a hearing, whenever the continued operation by the Franchisee would constitute a danger to public health, safety, welfare or public morals, including, without limitation, where there is a failure to maintain the minimum levels and standards of liability insurance or claims reserve or failure to keep in full force and effect any applicable licenses or permits required by federal, state, local law, or regulation. The notice of temporary suspension may be personally delivered to the party named and to the address given on the application pursuant to which such Franchise was issued and to the notice address stated herein, if different, or, mailed by registered or certified mail to the party named at the address given on the application pursuant to which such Franchise was issued and to the notice address stated herein, if different. Notwithstanding other notice provisions of this Agreement, the temporary suspension is effective upon the earlier of either receipt or the expiration of three (3) days from the date of mailing. The notice of temporary suspension shall include a notice of the date and time for termination hearing and all other information required by the Vernon Municipal Code. The temporary suspension shall remain effective until the decision on suspension or termination is made unless the suspension is lifted by written notice of the Chief of Police. Section 13. ACCEPTANCE, WAIVER. Franchisee agrees to be bound by and comply with all the requirements of Chapter 4B and this Agreement. By entering into this Agreement, Franchisee waives, to the maximum extent permitted by law, Franchisee's right to challenge the terms of this Agreement and of Chapter 4B under federal, state or local law, or under administrative regulation, as such laws and regulations exist as of the date of signing of this Agreement. Section 14. GENERAL TERMS AND CONDITIONS. 14.1 INDEPENDENT STATUS. It is understood that in the performance under this Agreement, Franchisee shall be, and is, an independent operator, and is not an agent, contractor, or employee of City and shall furnish services in its own manner and method, except as required by this Agreement. Further, Franchisee has and shall retain the right to exercise full control over the employment, direction, compensation and discharge of all persons employed by Franchisee in its business operations. Franchisee shall be solely responsible for, and shall indemnify, defend and save City harmless from all matters relating to the payment of its employees, including compliance with social security, withholding and all other wages, salaries, benefits, taxes, exactions, and regulations of any nature whatsoever. Franchisee acknowledges that Franchisee and any subcontractors, agents or employees are not 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. 14.2 FRANCHISEE NOT AGENT. Franchisee and its subcontractors shall have no authority, express or implied, to act on behalf of or bind the City in any capacity whatsoever as agents or otherwise. 14.3 WAIVER. The City's waiver of any term, condition, breach or default of this Agreement shall not be considered to be a waiver of any other term, condition, default or breach, nor of a subsequent breach of the one waived. - 9- 14.4 NO ASSIGNMENT. The Franchisee shall not assign or transfer any interest in this Agreement without the express prior written consent and approval of City Council. Any unauthorized assignment or transfer of Franchisee's rights or obligations under this Agreement shall be null and void and shall constitute a material breach by Franchisee of this Agreement. 14.5 COMPLIANCE WITH LAWS. Franchisee shall comply with all Federal, State, County and City laws, ordinances, resolutions, rules and regulations, which are, as amended from time to time, incorporated herein and applicable to the performance hereof. 14.6 ATTORNEY'S FEES. If any action at law or in equity is brought to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorney's fees, costs and necessary disbursements in addition to any other relief to which such party may be entitled. 14.7 INTERPRETATION. 14.7.1 Applicable Law. This Agreement, and the rights and duties of the parties hereunder(both procedural and substantive), shall be governed and construed according to the laws of the State of California, without regard to the conflict of laws provisions therein. 14.7.2 Entire Agreement. This Agreement, including any Exhibits attached hereto and any documents explicitly referenced herein, constitutes the entire agreement and understanding between the parties regarding its subject matter and supersedes all prior or contemporaneous negotiations, representations, understandings, correspondence, documentation and agreements (written or oral). 14.7.3 Written Amendment. This Agreement may only be changed by written amendment signed by Franchisee and the City Administrator or other authorized representative of the City, subject to any requisite authorization by the City Council. Any oral representations or modifications concerning this Agreement shall be of no force or effect. 14.7.4 Severability. If any provision in this Agreement is held by any court of competent jurisdiction to be invalid, illegal, void, or unenforceable, such portion shall be deemed severed from this Agreement, and the remaining provisions shall nevertheless continue in full force and effect as fully as though such invalid, illegal, or unenforceable portion had never been part of this Agreement. 14.7.5 Choice of Forum. The parties hereby agree that this Agreement is entered into and is to be performed in the City of Vernon and that all claims or controversies arising out of or related to performance under this Agreement shall be submitted to and resolved in a forum within the County of Los Angeles at a place to be determined by the rules of the forum. 14.7.6 Order of Precedence. In case of conflict between the terms of this Agreement and the terms contained in any document attached as an Exhibit or otherwise incorporated by reference, the order of precedence is as follows: Charter of the City of Vernon, the Vernon Municipal Code, the ordinance granting this Franchise, resolutions of the City of Vernon, this Agreement, the City's Request for Proposals for Official Police Towing Services, • 10 - and Franchisee's Response to the City's Request for Proposals for Official Police Towing Services. 14.7.7 Duplicate Originals. There shall be two (2) fully signed copies of this Agreement, each of which shall be deemed an original. 14.8 AUTHORITY OF FRANCHISEE. The Franchisee hereby represents and warrants to the City that the Franchisee has the right, power, legal capacity and authority to enter into and perform its obligations under this Agreement, and its execution of this Agreement has been duly authorized. 14.9 EMINENT DOMAIN. The granting of the Franchise shall not in any way impair or affect the right of the City to acquire the property of the Franchisee by purchase or condemnation, and nothing contained in this Franchise shall be construed to contract away, modify or abridge either for a term or in perpetuity the City's right of eminent domain. 14.10 VALUE OF FRANCHISE. By acceptance of the Franchise, the Franchisee, for itself, its successors and assigns, agrees that in any proceeding of any character before any court, commission, administrative body, board of arbitration or other public authority, no greater value shall be placed upon the franchise in excess of the cost to the Franchisee of the necessary publication and any other sum paid by Franchisee to the City therefor at the time of acquisition. Section 15_ ADDITIONAL ASSURANCES. 15.1 EQUAL EMPLOYMENT OPPORTUNITY PRACTICES. Franchisee certifies and represents that, during the performance of this Agreement, Franchisee and any other parties with whom it may subcontract shall adhere to equal opportunity employment practices to assure that applicants and employees are treated equally and are not discriminated against because of their race, religion, color, national origin, ancestry, disability, sex, age, medical condition, marital status. Franchisee further certifies that it will not maintain any segregated facilities. Franchisee further agrees to comply with The Equal Employment Opportunity Practices provisions as set forth in Exhibit "C". 15.2 BUSINESS LICENSES. Franchisee shall obtain, and pay any and all costs associated therewith, any Vernon Business License, which may be required by the Vernon Municipal Code and all permits, and licenses applicable to Franchisee's operations under this Franchise, which are required of Franchisee by any governmental agency. 15.3 MAINTENANCE AND INSPECTION OF RECORDS. The City, or its authorized auditors or representatives, shall have access to and the right to audit and reproduce any of the Franchisee's records to the extent the City deems necessary to insure it is receiving all money to which it is entitled under the Agreement and/or is paying only the amounts to which Franchisee is properly entitled under the Agreement or for other purposes relating to the Agreement. The Franchisee shall maintain and preserve all such records for a period of at least 3 years after termination of the Agreement. The Franchisee shall maintain all such records in the City of Vernon. If not, the Franchisee shall, upon request, promptly deliver the - 11 - 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 personal, salaries, private auditors, travel, lodging, meals and overhead. 15.4 CONFLICT. Franchisee hereby represents, warrants and certifies that no member, officer or employee of the Franchisee is a director, officer or employee of the City of Vernon, or a member of any of its boards, commissions or committees, except to the extent permitted by law. Section 16. LIVING WAGES. Franchisee, and any subcontractor(s), shall comply with the City's Living Wage Ordinance. The current Living Wage Standards are set forth in Exhibit"D". Upon the City's request, certified payroll records shall promptly be provided to the City. Section 17. NOTICES. Except as otherwise provided in this Agreement, all notices required by this Agreement or by Chapter 4B of the Vernon Municipal Code shall be given by personal service or by deposit in the United States mail, postage pre-paid and return receipt requested, addressed to the parties as follows: To City: Vernon Police Department Attention: Police Chief 4305 Santa Fe Avenue Vernon, CA 90058 Copies to: City of Vernon Attention: Finance Director 4305 Santa Fe Avenue Vernon, CA 90058 Franchisee: U.S. Tow, Inc. Attention: Moshe Ben Dayan, President/CEO 2119 East 25"1 Street Los Angeles, CA 90058 Notice shall be deemed effective on the date personally served or, if mailed, three days after the date deposited in the mail. [Signatures Begin on Next Page]. - 12 - IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by their duly authorized representatives as of the date set forth below. City of Vernon, a California charter City U.S. Tow, Inc., a California corporation and California municipal corporation DATED: DATED: By: By' Name: W. Michael McCormick, Mayor Title: ATTEST: By: Name: Maria E. Ayala, City Clerk Title: APPROVED AS TO FORM: Brian Byun, Deputy City Attorney - 13 - EXHIBIT A EXHIBIT A REQUEST FOR PROPOSALS - 14 - City of Vernon Request for Proposals (R.FP) Franchise Tow Fee Program Fox City of Vernon Police Department 4305 Santa Fe Avenue, Vernon, CA 90058 Phone: (323) 587-5171 _ J City of Vemon Franchise Tow Fee Program Request for Proposals 1. INTRODUCTION AND PROJECT The City of Vernon seeks proposals from qualified bidders to enter into a franchise agreement to perform rotational police towing and storage services. Services to be performed by the selected contractor include vehicle towing and impound services as directed by the Vernon Police Department. Based on the quality of the proposals received, the City may consider awarding a single tow franchise contract, or multiple tow franchise contracts using a call-far-service rotation. The City does not expect to aware more than two (2)franchise agreements under the rotational system, although City Council reserves the right to award contracts at its sole discretion, based on the proposals submitted, The City will select no more than two (2) tow service companies, based on demonstrated competence and a cost effective approach to design, conduct, and assist in the removal of vehicles which are apparently abandoned, or driven by unlicensed drivers, or drivers driving on suspended licenses, or involved in traffic collisions, or vehicles creating a traffic hazard due to mechanical failures. To be eligible for consideration, the tow service company's place of business and vehicle storage facility must be located within a seven (7) mile radius of the Vernon City Hall, located at 4305 Santa Fe Avenue, Vernon CA 90058. 2. BACKGROUND The City of Vemon was founded in 1905, is approximately 5.2 square miles in size and is located approximately 5 miles southeast of downtown Los Angeles California. Over its long history Vernon has been developed as an industrial community_ At the turn of the 20°i century the lands that make up Vernon were comprised largely of farmlands. The presence of three major rail lines in the area led influential business and property owners to encourage the railroad companies to run spur lines onto the farmlands. These rail extensions enabled the creation of an "exclusively industrial' city. By the 1920's Vernon was attracting large stockyards and meatpacking facilities. In the 1930's Vernon became the location of choice for many heavy industrial plants. As economic conditlons changed over the decades, these large scale industrial operations have relocated out of Souther Califomia and Vemon has attracted smaller, lighter industrial facilities. The City's business friendly environment, low cost utilities and key location for trucking and rail transport continue to position Vernon as an ideal location for industrial uses. City Government: The City Council consists of five members, elected at-large, who serve five-year staggered terms. The City Council annually appoints a Mayor and a Mayor Pro Tem from its own membership to serve one-year terms. - 2- City of Vernon Franchise Tow Fee Program Request for Proposals Labor Force: Vernon has approximately 250 employees, and its departments include a Fire Department, Police Department, Finance Department, Public Works, Water and Development Services Department, Gas and Electric Department and Health and Environmental Control Department. Present bargaining units recognized include the Vernon Police Officers Benefid Association, Vernon Police Management Association, Vernon Firemen's Association, the Vernon Fire Management Association, Intem2bonal Brotherhood of Electrical Workers Local 47, and Teamsters Local 911. 3. ISSUES OR PROBLEMS TO BE ADDRESSED The selected tow service company shall be able to provide swift, professional service in the removal of any vehicle, as directed by the Vernon Police Department, from any City street. 4. SCOPE OF SERVICES REQUIRED The City of Vernon is seeking the services of a highly qualified tow service company to assist in: Under the terns specified herein as well as in Chapter 4B of the Vernon Municipal Code, Franchisee shall famish impound, lowing, and storage services to the Verrwn Police i Department and the City as directed by the Vernon Police Department. To be eligible for a franchise, applicants must meet the City's minimum requirements as specified herein. l Franchisee will be required to provide the necessary trained personnel, tow trucks and storage facilities to recover, if necessary, and remove vehicles and tractor/trailers involved in collisions. Franchisee(s)must be able to tow and store vehicles impounded by the police, many times in excess of 30 days: and must be able to clean up and dispose of debris at the scene of an accident at which any vehicle to be towed hereunder was involved. The average response lime for any thirty day period pursuant to requests for tow service by the Police Department, must not exceed twenty (20)minutes. The maximum response time for any single request for tow service by the Police Department shall not exceed thirty (30)minutes. 1n the event the Franchisee cannot respond within 20 minutes, the Franchisee shall immediately notify the Police Department dispatcher and provide an estimated time of arrival. Franchisee must provide a dispatcher available onsite at the tow facility place of business at all times for the immediate dispatching of towing equipment. Franchisee's place of business must be open from 0700 to 1800 hours Monday through Friday. Alternate hours, as directed by the City, must also be available in order to accommodate special City events. Failure or refusal to promptly relay the Police Dispatcher's requests for towkg services shall constitute failure to comply with the requirements, terms and conditions of the agreement and may result in termination of the agreement. All tow trucks shall be equipped as provided in the California Vehicle Code. - 3- City of Vernon Franchise Tow Fee Program Request for Proposals Franchisee's trucks shall be painted, free of major dents, and kept clean and in good working order. Official police tow services shall, at all times, have at least three fully equipped and operational tow trucks in service. All of the tow trucks in service must have a minimum capacity of one(1)ton. At least one of the tow trucks in service must be a flatbed tow truck. At least one of the three tow trucks in service must have a five ton (5) lifting capacity. Every official police tow service shall be equipped for and have personnel proficient in unlocking locked vehicles when requested to do so by Police Department employees. Upon selection the Franchisee shall file with the Vernon Police Department, the name, address, date of birth, driver's license number, and all other information required of any tow unit driver employed by the permit holder subsequent to the date of the tow operator permit application, which information shall be fled not later than ten(10) business days following the effective date of hiring. The Franchisee will be required to notify the Vernon Police Department of the name of any tow truck driver no longer employed by such permit holder. This notification shall be given to the Vernon Police Department no later than ten (10)business days following the last dale of the driver's employment by the permit holder, The Franchisee will be required to notify the Vernon Police Department of the identity of any tow truck driver whose license is suspended. The operator shall not be authorized to operate in Vernon unless the operator has provided proof from the Department of Motor Vehicles of the ability to operate a vehicle during work hours. The Franchisee will be required to enroll and participating in a program with California Department of Motor Vehicles (DMV Pull Program)that notifies the Franchisee when their drivers have any change to their driving status or record. This DMV program will alert the Franchisee to any potential problem drivers. Franchisee will be required to comply with the California Vehicle Code and other applicable laws with regards to lien sales, including supplying a list of vehicles each month that the Franchisee intends to lien sale prior to selling same for approval by the department. Franchisee is responsible for maintaining all documents relating to lien sales. 5. QUAL ICATIOM$&CRITERIA A. Qualifications: The City of Vernon will select no more than two (2) tow service companies for all of the outlined Scope of Service on the basis of qualifications, experience, and cost. The following are the minimum qualifications to be used to evaluate responses to this Request for Proposal: 1. The applicants can satisfy the insurance, business license, and tow operator permits requirements set forth in Vernon Municipal Code Chapter 4B. 2. The applicants are qualified on the basis of prior experience in the towing -4 - City of Vernon Franchise Tow Fee Program Request for Proposals operation business and financial responsibility. 3. All tow vehicles and equipment must comply with all state and applicable federal requirements. 4. The applicants can reasonably conduct an official police towing service which complies with all of the requirements of Vernon Municipal Code Chapter 4B. 5 The applicants will accept all tow requested by the City, including tows of abandoned or dismantled vehicles and/or tows requiring special equipment. i B. Selection Criteria: The City will conduct a comprehensive, fair, and impartial evaluation of proposals received in response to this RFP. All proposals received G will be reviewed and evaluated by a committee of qualified personnel. The name, i information. or experience of the individual members will not be made available to any proposer. The Evaluation Committee will first review and screen all proposals submitted, except for the cost proposals, according to the minimum qualifications set forth above. The following criteria will be used in reviewing and comparing the proposals and in determining the highest scoring bid: 1. 40% Qualifications, background and prior experience of the tow service company in the Service Area(s)being proposed, experience of key staff assigned to oversee services provided to Vernon,evaluation of size and scope of similar work performed and success on that work. 2. 30% Cost and fees to the City for handling matters. Cost is not the sole determining factor but will be taken into consideration. Proposer must offer services at a rate comparable to the rate proposer offers to other governmental entities for similar work. Offering a higher rate to the City than the comparable rate is grounds for disqualification of the Proposer. If rates differ for different types or levels of service, or for different Service Areas, the Proposer should so state. 3. 10% Responsiveness to the RFP, and quality and responsiveness of the proposal. 4. 20% References including past performance of proposer. B. FORMAT AND DELIVERY F RCOONSE Respondents are asked to submit seven (7) hard copies and one (1) electronic copy of their proposals in sufficient detail to allow for a thorough evaluation and comparative analysis. The proposal should include, at a minimum, the following information in sectionalized format addressing all phases of the work in the RFP. A. Format: Limit your proposal to 20 typed 8.5" X 11" pages, or fewer, on white bond paper of at least 20-pound weight single sided (excluding cover letter and attachments. You may attach a company brochure if you wish, but it must be as a separate attachment and independent from the required elements noted above. 1. Use a conventional typeface with a minimum font size of 12 points. Use a 1° margin on all boarders. -5- City of Vernon Franchise Tow Fee Program Request for Proposals 2. Organize your submittal in the order described above. 3. Provide one (1) unbound original of your company's response and one electronic version (via email) to Captain Michael Gillman, mgillman@covpd_org 4. Prominently label the package: "Franchise Tow Fee Program' and include the name of the primary contact for the respondent. Deliver the response to: City of Vernon Attention: Captain Michael Gillman 4305 Santa Fe Avenue Vernon, CA 90058 5. Responses are due on or before 5:00 p.m. on April 16, 2015. Late response will not be accepted. 6. If you have any question about this RFP, please contact Captain Michael Gillman at(323) 587-5171 ext. 115. B. Cover Letter: All proposals shall include a cover letter which states that the proposal shall remain valid for a period of not less than ninety (90) days from the date of submittal. If the proposal contemplates the use of sub-contractors, the sub- contractors shall be identified in the cover letter. If the proposal is submitted by a business entity, the cover letter shall be signed by an officer authorized to contractually bind the business entity. With respect to the business entity, the cover letter shall also include: the identification of the business entity, including the name, address and telephone number of the business entity; and the name, title, address and telephone number of a contact person during the proposal evaluation period. C. Introduction: Present an introduction of the proposal and your understanding of the assignment and significant steps, methods and procedures to be employed by the proposer to ensure quality deliverables that can be delivered within the required time frames and your identified budget. D. General Scope of Work: Briefly summarize the scope of work as the proposer perceives or envisions it for each Service Area proposed. E. Work Plan: Present concepts for conducting the work plan and interrelationship of all projects. Define the scope of each task including the depth and scope of analysis or research proposed. F. Fees and costs: Although an important aspect of consideration, the financial cost estimate will not be the sole justification for consideration. Negotiations may or may not be conducted with the proposer, therefore, the proposal submitted should contain the proposer's most favorable terms and conditions, since selection and award may be made without discussion with any tow service company. All prices -6- City of Vemon Franchise Tow Fee Program Request for Proposals should reflect "not to exceed" amounts per item. Proposer must offer services at a rate comparable to the rate proposer offers to other govemmental entities for similar work. Offering a higher rate to the City than the comparable rate is grounds for disqualification of the Proposer. G. Ability of the Proposer to Perform: Provide a detailed description of the proposer and histherrits qualifications, including names, titles, detailed professional resumes and past experience in similar work efforts/products of key personnel who will be working on the assignment. Provide a list of specific related work projects that have been completed by the proposer which are directly related to the assignment described in this RFP. Note the specific individuals who completed such project(s). Identify role and responsibility of each member of the project team. Include the amount of time key personnel will be involved in the respective portions of the assignment. Respondents are encouraged to supply relevant examples of their professional product. Provide a list of references. The selected tow service companies shall not subcontract any work under the RFP nor assign any work without the prior written consent of the City. H. Affidavit of Non-Collusion. Proposer must submit a completed and signed, "Affidavit of Non-Collusion.' (Copy attached as Exhibit A). T. ADDENDA, CHANGES,AND AMENDMENTS TO THIS SOLICITATION At any time prior to the due date for responses, the City may make changes, amendments, and addenda to this solicitation, including changing the date due to allow respondents time to address such changes. Addenda, changes, and amendments, if made, will be posted on the City's website (www_cityofvemon.org), which is deemed adequate notice. A proposer may make a request to the City's project coordinator to be placed on a list of persons to receive notice of any such addenda, changes, or amendments. The preferred manner of communications Is via e-mail due to its timeliness. S. CONDITIONS FOR RESPONSES TO RFP The following conditions apply to this RFP process. A Nothing contained in this RFP shall create any contractual relationship between the respondent and the City. B. This RFP does not obligate the City to establish a list of service providers qualified as prime contractors, or award a contract to any respondent. The City reserves the right to amend or cancel this RFP without prior notice, at any time, at its sole discretion. C. The City shall not be liable for any expenses incurred by any individual or organization in connection with this RFP. D. No conversations or agreements with any officer, agent, or . 7 . City of Vernon Franchise Tow Fee Program Request for Proposals employee of the City shall affect or modify any terms of this RFP. Oral communications or any written/e-mail materials provided by any person other than designated contact staff of City shall not be considered binding. E. The City reserves the right, in its sole discretion, to accept or reject any or all Proposals without prior notice and to waive any minor irregularities or defects in a Proposal. The City reserves the right to seek clarification on a Proposal with any source. F. The dates, times, and sequence of events related to this RFP shall ultimately be determined by the City. The schedule shown above is subject to change, at the sole discretion of the City, although the City will attempt to follow it and, if it must be altered, will attempt to provide reasonable notice of the changes- G. Respondents shall not issue any news release pertaining to this RFP, or the City without prior written approval of the City. H. All submitted proposals and information included therein or attached thereto shall become public record upon delivery to the City Administrator's Office. S. RIGHT&X-T-BETHIS The City may, at its sole discretion and for any reason whatsoever, withdraw this solicitation at any time. 10. L[Y1NG WAGJ ORDNANCE The selected tow service companies shall pay qualifying employees a wage of not less than $10.30 per hour with health benefits, or $11.55 per hour without health benefits- The tow service companies shall also provide qualifying employees at least twelve days off per year for sick leave, vacation or personnel necessity, and an additional ten days a year of uncompensated time for sick leave. There shall be a prohibition on employer retaliation against an employee's complaining to the City with regard to the employer's compliance with the living wage ordinance. The tow services companies, and any sub- contractor(s), shall comply with the City's Living Wage Ordinance. The current Living Wage Standards are set forth in Exhibit"D"of the standard form franchise towing services contract, attached hereto as Exhibit B. Upon the City's request, certified payroll records shall promptly be provided to the City. -8- City of Vem n Franchise Tow Fee Program Request for Proposals 11. STANDARD TERMS AND CONDITIONS Prior to the award of any work hereunder, City and proposer shall enter into the written contract for services attached hereto as Exhibit S. Proposers responding to this RFP are strongly advised to review all the terms and conditions of the Contract The term of the Contract shall not exceed three (3)years, -9- City of Vernon Franchise Tow Fee Program Request for Proposals EXHIBIT A AFFIDAVIT OF NON-COLLUSION -10- t AFFIDAVIT OF NON-COLLUSION BY CONTRACTOR STATE OF CALIFORNIA ) )ss COUNTY OF LOS ANGELES ) being first duly sworn deposes i and says that he(she is (Inset'Sole Owner.'Partner,'President,'Seurelary',or other proper title) of (row. BerneorNkf) who submits herewith to the City of Vernon a bid/proposal; That all statements of fact in such bid/proposal are truc; That such bid/proposal was not made in the interest of or on behalf of any undisclosed person, partnership,company,association,organization or corporation; That such bid/proposal is genuine and not collusive or sham; That said bidder has not,directly or indirectly by agreement,communication or conference with anyone attempted to induce action prejudicial to the interest of the City of Vernon, or of any other bidder or anyone else interested in the proposed contract;and further Tbat prior to the public opening and reading of bids/prtoposals,said bidder. a. Did not directly or indirectly, induce or solicit anyone else to submit a false or sham bid/proposal; -. Did not directly or indirectly, collude, conspire, connive or agree with anyone else that said bidder or anyone else would submit a false or sham bid/proposal,or that anyone should r+efiain from bidding or withdraw his/her bid/proposal; C. Did not, in any manner,directly or indirectly seek by agreement,communication or conference with anyone to raise or fix the bid/proposal price of said bidder or of anyone else,or to raise or fix any overhead,profit or cost element of his/her bid/proposal price,or of that of anyone else; d. Did not, directly or indirectly, submit his/her bid4xvposal price or any breakdown thereof, or the contents thereof, or divulge information or data relative thereto, to any corporation, partnership, company, association, organization, bid depository, or to any member or agent thereof,or to any individual or group of individuals,except the City of Vernon,or to any person or persons who have a partnership or other fittartcial interest with said bidder in his/her business. I certify under penalty of perjury that the above information is correct BY Title: Date: March 2013 City of Vernon Franchise Tow Fee Program Request for Proposals EXHIBIT B STANDARD FORMA CONTRACT -11 - CITY OF VERNON FRANCHISEE TOWING SERVICES AGREEMENT NO. COVER PAGE Franchisee: [insert name of franchisee] Responsible Principal of Franchisee. [insert name, title] Notice Information - Franchisee: [insert name of franchisee] [insert street address] [insert city, state, zip code] Attention: [insert name, title] Phone: [insert phone number] Facsimile: [insert fax number] Notice Information - City: City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 Attention: [insert department head] [insert department head title] Telephone: (323)583-8811 ext. [insert] Facsimile: [insert fax number] Commencement Date: [insert commencement date] Termination Date: [insert termination date] Consideration: Payment is made by Franchisee to City pursuant to Section 3 of this Agreement. Payment is made to Franchisee by City pursuant to Section 5 of this Agreement. Records Retention Period [insert number of years contractor must retain records] March 2015 CITY OF VERNON FRANCHISEE TOWING SERVICES AGREEMENT NO. This Agreemmnt is made and entered into by and between the City of Vemon("City'), a California charter City and California municipal corporation, and ('Franchisee'), a Police Towing Company with its principal place of business at (collectively, the "Parties') to provide for towing services to the city. The Parties agree as follows: RECITALS WHEREAS, Franchisee shall provide police towing services to the City of Vernon as set forth in the Request for Proposal dated Exhibit A and F n hisee's pmpasial to the City('Proposal']dated Exhibit B.both of which are attached to and incorpor2ted Into this AareernenLb ference. WHEREAS, pursuant to Chapter 4B of the Vemon Municipal Code, Franchisee has applied for a Police Towing Franchise("Franchise'); and WHEREAS, the City Council has held a public hearing for the purpose of hearing persons in favor of or in opposition to the granting of such Franchise; and WHEREAS, the City Council has determined that Franchisee has demonstrated compliance with Chapter 4B of the Vemon Municipal Code and has agreed to comply with all provisions of that Chapter; and WHEREAS, it is required that City and Franchisee enter into a Franchise Towing Services Agreement("Agreement')for Police Towing services in the City of Vemon; and WHEREAS, additional conditions have been imposed upon this grant of Franchise. NOW,THEREFORE, the Parties do hereby agree as follows: Section 1. GRANT OF FRANCHISE. City grants to Franchisee a Police Towing Franchise authorising Franchisee to engage in the business of Police Towing as set forth in chapter 413 of the Vemon Municipal Code in the City of Vemon and to use the public streets and rights of way for such purpose. This grant is pursuant to the City's Request for Proposal and to Franchisee's proposal for the Franchise. Franchisee is subject to the terms and conditions specified in Section 8.9 of the Charter of the City of Vemon, the provisions of Chapter 4B of the Vemon Municipal Code, the terms and conditions specified in all related resolutions, the terms and conditions of this Agreement, the representations and assurances in Franchisee's application for the Franchise. Section 2. TERM OF FLUWCHISE. The term of this Franchise granted to Franchisee shall be for three (3) years, from to inclusive. March 2015 Section 3. FRANCHISE FEES. 3.1 During the term of the Franchise, Franchisee shall pay franchise fees to City, which fees shall be assessed from the date on which the ordinance granting this Franchise became effective and in accordance with Section 4B.8 of the Vernon Municipal Code and any Resolution adopted by the City Council and in such other amounts as are set forth in any subsequent resolutions that may be adopted by the City Council at any time during the term of the Agreement. 3.2 Franchise shall timely pay all required franchise fees to: Finance Department—Director of Finance City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 Each payment shall be accompanied by a written statement,verified by the Franchisee or a duty authorized representative of the Franchise, showing in such form and detail as the Director of the Department of Finance may prescribe, the calculation of the franchise fee payable by the Franchisee and such other information as the Director of the Department of Finance may require as material to a determination of the amount due. 3.3 The first payment of the franchise fee will be due on and payments shall be due monthly thereafter on the 1 e day of each month. 3.4 When Franchisee remits franchise fees the City, such franchise fees shall be deemed timely paid only if delivered or postmarked on or before the due date. If fees are not timely paid, Franchisee shall be subject to suspension or termination of the Franchise pursuant to Section 14 of this Agreement and/or to any other penalties which may be established and assessed by the City, including, but without limitation, late fees assessed at the rate of five percent(5%). Section 4. TOWING SERVICES. 4.1 Franchisee shall provide Police Tawing services, as set forth in Exhibit A, which is the City's Request for Proposals for Official Police Tow Services, and which includes, but without limitation, strictly adhering to the eligibility requirements, operating regulations, fees schedules, standards for tow truck equipment, standard rules of operation, response time, inspection, information regarding new or terminated tow truck drivers, tow driver training, and as set forth in Exhibit B which is Franchisee's response to the City's Request for Proposals. All services by Franchisee shall comply will all provisions of federal, state and local law and regulation, including, but without limitation Chapter 4B of the Vernon Municipal Code. 4.2 Franchisee understands and agrees that, although the City is granting it a franchise as a police towing service, the City may requisition towing services from other service providers as set forth in Section 48.12 of the Vernon Municipal Code, or if Franchisee is otherwise unavailable for any reason, in the reasonable discretion of the Vernon Chief of Police and including, but without limitation, suspension or termination of the Franchisee. March 2015 Section 5. RATES—CHARGES AND PAYMENT. 5.1 The rates and charges for towing and storage in connection with this Franchise shall be established by the City Council. The prevailing rates prescribed by the Southern Division of the California Highway Patrol, the Los Angeles Police Department, and the Los Angeles County Sheriff will be considered when establishing these rates. The rate per impound shall be $ and the storage charge shall be $ per day, until otherwise modified by the City Council. A sign showing the approved rates and charges shall be conspicuously posted in the Franchisee's tow office and shall be posted in a conspicuous place in the interior of each tow truck operated by Franchisee. Franchisee shall provide vehicle owners the option of payment by MasterCard and Visa. Franchisee must provide for after-hours releases of vehicles, and may collect an after-hour release fee. As part of the award of franchise the City Council will be requested to establish an after-hours release fee not to exceed '/2 of the impound fee in addition to other established fees. Section 6. REPORTS. Franchisee shall file a monthly towing report with the Chief of Police along with payment of its monthly franchise fees. The report shall be submitted to: Chief of Police Vernon Police Department 4305 Santa Fe Avenue Vernon, CA 90058 The report shall include the information required by Section 413.10(H)of the Vernon Municipal Code for Franchisee and its subcontractors, certified as true and correct under penalty of perjury by a responsible owner or official of the Franchisee: Section 7. FRANCHISEE'S RECORDS. 7.1 The Franchisee shall maintain accurate and complete books and accounts of all revenues and income arising out of its operations under the Franchise and in a manner, which conforms with generally accepted accounting principles. Franchisee's books, accounts and records, arising out of or related to its operation under the Franchise, shall at all times be open to inspection, examination and audit by authorized officers, employees and agents of the City. Such records shall be kept at franchisee's place of business shown in this Agreement for receipt of notices. 7.2 Franchisee shall require its subcontractors, if any, who perform Police Towing services in connection with the Franchise to keep and maintain books of account and other records showing all business transactions conducted by such subcontractors in connection with the Franchise. Franchisee agrees to use its best efforts to avoid duplication of reporting between Franchisee and its subcontractors. Section 8. TOW VEHICLE AND DRIVER, REPORTING, COMPLIANCE, AND IDENTIFICATION. 8.1 Franchisee shall maintain on file with the City, a complete and accurate listing of every vehicle operated by Franchisee for police towing services. Franchisee shall certify, in a form acceptable to City, that every such vehicle conforms with regional and State March 2015 vehicle emission standards ("emission standards"), and shall provide documentation of compliance on written request of the City. Franchisee understands and agrees that failure to conform with emission standards may result in suspension, termination or non-renewal of a Franchise. 8.2 Every vehicle operated by Franchisee and for Police Towing services in the City shall bear the following identification: Franchisee's trade name, monogram or insignia, the Franchise vehicle number, together with Franchisee's telephone number painted upon both sides of the vehicle. All lettering mentioned in this paragraph shall be not less than 2-1/4' in height and not less than 5/6'stroke. The Franchisee agrees to remove the Franchise vehicle number and all other information within 30 calendar days after the Franchise is terminated or the vehicle is sold, transferred or taken out of service. 8.3 Franchisee shall file with the Vernon Police Department, the name, address, date of birth, driver's license number, and all identification required of any tow unit driver working for Franchisee, whether as an employee or as a contractor, which information shall be filed not later than ten(10) business days following the effective date of employment or engagement Franchisee shall also notify the Vernon Police Department within ten(10) business days of the following occurrences: the license suspension of any tow unit driver, and the end of employment, or engagement, of any tow unit driver with Franchisee. Section G. INDEMNIFICATION OF CITY. 9.1 Franchisee shall indemnify and hold the City harmless from and against any and all loss, damages, liability, claims, suits, costs and expenses, fines, charges or penalties whatsoever, including reasonable attorney's fees, regardless of the merit or outcome of any such claim or suit, arising from or in any manner related to the services provided or business conducted under Chapter 4B of the Vernon Municipal Code or otherwise pursuant to this Agreement. 9.2 Franchisee shall indemnify the City, defend with counsel approved by the City, protect and hold harmless the City, its officers, employees, agents, assigns, and any successor or successors to the City's interest from and against all claims, actual damages (including but not limited to special and consequential damages), natural resources damage, punitive damages, injuries, costs, response, remediation and removal costs, losses, demands, debts, liens, liabilities, causes of action, suits, legal or administrative proceedings, interest, fines and charges, penalties and expenses(including, but not limited to, attorneys' and expert witness fees and costs incurred in connection with defending against any of the foregoing or in enforcing this indemnity)of any kind whatsoever paid, incurred or suffered by, or asserted against, the City or its officers, employees, agents or the Franchisee arising from or attributable to any repair, remediation, cleanup or detoxification, or preparation and implementation of any removal, remedial, response, or closure or other plan (regardless of whether undertaken due to governmental action)concerning any hazardous substance or hazardous waste at any place where the Franchisee stores or dispose of solid or hazardous waste. The foregoing indemnity is intended to operate as an Agreement pursuant to the Comprehensive Environmental Response, Compensation and liability Act, 42 United States Code Section 9607, and California Health and Safety Code Section 25364, and any successor provisions, to insure, protect, hold harmless, and indemnify the City from liability. March 2015 Section 10. INSURANCE REQUIREMENTS. 10.1 Franchisee shall, at its sole cost and expense, procure and ma+ntain in full force and effect, throughout the term of this Agreement, inclusive of any renewal term granted by City, insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the services hereunder by the Franchisee, its agents, representatives, employees or subcontractors, Franchisee shall procure and maintain insurance policies of the types and meeting the requirements set forth below, and shall provide to the City a Certificate of Insurance, or other such evidence reasonably acceptable to the City, verifying the existence of such policies; 10.2 Minimum Sopoe of Insurance Coverane. Franchisee snail procure and maintain policies of insurance with minimum scopes of coverage AT LEAST as broad as the following: i (a) Comprehensive General Liability Insuranoe. (b) Comprehensive Vehicle Liability Insurance. (c) Workers'Compensation Insurance as required by the State of California and Employer's Liability Insurance. 10.3 Minimum Limits. Vendor shall maintain insurance with minimum limits NO LESS THAN the following: (a) General Liability of Two Million Dollars($2,000,000)for each occurrence and in the aggregate, combined single limit, against any bodily injury, death, personal injury, or property damage. In Comprehensive General Liability Insurance or other form in which a general aggregate limit is used, the general limit shall apply separately to this Agreement or the general limit shall be TWICE the required occurrence limit. (b) Automobile Liability of One Million Dollars($1,000,000)per accident for bodily injury and property damage. (c) Garage Keepers Legal Liability coverage with minimum limits of Two Hundred Fifty Thousand Dollars ($250,000)per occurrence. (d) Employer's Liability of One Million Dollars ($1,000,000) per accident for bodily injury or disease. (e) Worker's Compensation and Employer's Liability Insurance in an amount required by law. 10.4 Deductibles. Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, Franchisee shall either: (a) Reduce or eliminate such deductibles or self-insured retentions as respect to the City, its elected and appointed officials, officers, employees, agents, representatives,attorneys, and volunteers, OR (b) Procure a bond, guaranteeing payment of losses and related investigations.claim administration and defense expenses. March 2015 10.5 Required Endorsements. All of the policies required by this Agreement shall contain, or be endorsed to contain, the following provisions: (a) City, its elected and appointed officials, officers, employees, agents, representatives, attomeys and volunteers shall be named as additional insured parties, and the policies shall specifically state that the coverage contained in the policies affords insurance pursuant to the lerms and conditions as set forth in this Agreement. (b) The insurance coverage provided by the Franchisee shall be primary to any coverage available to the City. Any insurance or self-insurance maintained by City, its officers, officials, employees or volunteers shall be in excess of Franchisee's own insurance and shall not contribute with it. (c) The insurance policies shall contain no special limitations on the scope of protection afforded to the City, its elected and appointed officials, officers, employees, agents, representatives, attorneys or volunteers. Further, the policies shall expressly waive the right of subrogation against City, its elected and appointed officials, officers, employees, agents, representatives, attorneys or volunteers. (d) Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to the City, its elected and appointed officials, officers, employees, agents, representatives, attorneys or volunteers. (e) The insurance coverage shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. (f) Each insurance policy required by this section shall be endorsed to state that coverage SHALL NOT be suspended, voided, and/or canceled by either party, and that there shall be no reduction in the amount of coverage or in the limits applicable thereto EXCEPT after thirty(30)days prior written notice has been given to the City, said written notice to be delivered by U.S. Certified Mail, Return Receipt Requested addressed to the City Attorney and City Finance Director. (g) In its sole discretion, the City may waive all or some portion of the above referenced insurance if such waiver is in writing and executed by City's Finance Director. 10.6 Required Insurance Rating_ Any insurance policy required by this Agreement shall be placed with an insurer admitted in the State of California with a current A.M. Best's rating of NO LESS THAN B+:VII in the latest edition of Best's Insurance Guide. 10.7 Original Certificates Rgguired. At all times during the term of this Agreement, Franchisee shall maintain on file with the City's Finance Director a certificate or certificates of insurance. Said certificate or certificates of insurance shall show that the aforesaid policies are in effect in the required amounts and shall contain each of the endorsements as set forth in Section 10.3. Franchisee shall, prior to commencement of work under this Agreement, file with the City Finance Director the original certificates effecting coverage required by this section of this Agreement. The endorsements are to be signed by the person authorized by that insurer to March 2015 bind coverage on its behalf. The endorsements are to be received and approved by City before Franchisee commences operation under the terms of this Agreement 10.6 Failure to Maintain R uired Insurance. Franchisee agrees that if it fails to keep the aforesaid insurance policies in full force and effect the City may,at its sole option, either(i) immediately terminate this Agreement or, (ii)if insurance is available at a reasonable cost, the City may take out the necessary insurance and pay, at Franchisee's cost and expense, the premium thereon_ Section 11. TERMINATION AND SUSPENSION. The City may terminate this Agreement, without cause, by giving the Franchisee thirty(38)days written notice of such termination and the effective date thereof. The City may terminate this Agreement,with cause, by giving the Franchisee(10)days written notice of such termination and the effective date thereof. Cancellation for cause shall be at the discretion of the City and shall be, but is not limited to, failure to supply the materials, equipment or servioe specified within the time allowed or within the terms, conditions or provisions of this contract. The Franchisee may not cancel this Agreement without prior written consent from the Vernon Chief of Police. Section 12. TEMPORARY SUSPENSION. In addition to termination or suspension as set forth in Section 11, above, the Chief of Police may temporarily suspend any Franchisee without a hearing, whenever the oontinued operation by the Franchisee would constitute a danger to public health, safety,welfare or public morals, including,without limitation,where there is a failure to maintain the minimum levels and standards of liability insurance or claims reserve or failure to keep in full force and effect any applicable licenses or permits required by federal, state, local law, or regulation. The notice of temporary suspension may be personally delivered to the party named and to the address given on the application pursuant to which such Franchise was issued and to the notice address stated herein, if different, or, mailed by registered or certified mail to the party named at the address given on the application pursuant to which such Franchise was issued and to the notice address stated herein,if different. Notwithstanding other notice provisions of this Agreement, the temporary suspension is effective upon the earlier of either receipt or the expiration of 3 days from the date of mailing. The notice of temporary suspension shall include a notice of the date and time for termination hearing and all other information required by the Vernon Municipal Code, The temporary suspension shall remain effective until the decision on suspension or termination is made unless the suspension is lifted by written notice of the Chief of Police. Section 13. ACCEPTANCE,WAIVER. Franchisee agrees to be bound by and comply with all the requirements of Chapter 46 and this Agreement. By entering into this Agreement, franchisee waives, to the maximum extent permitted by law, Franchisee's right to challenge the terms of this Agreement and of Chapter 4B under federal, state or local law, or under administrative regulation, as such laws and regulations exist as of the date of signing of this Agreement. Section 14. GENERAL TERMS AND CONDITIONS_. f 14.1 INDEPENDENT STATUS. It is understood that in the performance under t this Agreement, Franchisee shall be, and is, an independent operator, and is not an agent, March 2015 contractor,or employee of City and shall fumish services in its own manner and method. Further, Franchisee has and shall retain the right to exercise full control over the employment, direction, compensation and discharge of all persons employed by Franchisee in its business operations. Franchisee shall be solely responsible for, and shall indemnify, defend and save City harmless from all matters relating to the payment of its employees, including compliance with social securlty, withholding and all other wages, salaries, benefits, taxes, exactions, and regulations of any nature whatsoever. 14.2 FRANCHISE NOT AGENT. Franchisee and its subcontractors shall have no authority, express or implied, to act on behalf of or bind the City to any capacity whatsoever as agents or otherwise_ 14.3 WAIVER. The City's waiver of any term, condition, breach or default of this Agreement shall not be considered to be a waiver of any other term, condition, default or breach, nor of a subsequent breach of the one waived, 14.4 NO A5SIGNIVIENT. The Franchisee shall not assign or transfer any interest in this Agreement without the express prior written consent and approval of City Council. 14.5 COMPLIANCE WITH LAWS. Franchisee shall comply with all Federal, State, County and City laws, ordinances, resolutions, rules and regulations, which are, as amended from time to time, incorporated herein and applicable to the performance hereof. 14.6 ATTORNEYS FEES. If any action at law or in equity is brought to enforce or interpret the terms of this Agreement, the preveling party shall be entitled to reasonable adomey's fees, costs and necessary disbursements in addition to any other relief to which such party may be entitled. 14.7 INTERPRETATION. 14.7.1 Applicable Law. This Agreement, and the rights and duties of the parties hereunder(both procedural and substantive), shall be governed and construed according to the laws of the State of California. 14.7.2 Entire Agreement. This Agreement, including any Exhibits attached hereto and any documents explicitly referenced herein, constitutes the entire agreement and understanding between the parties regarding Its subject matter and supersedes all prior or contemporaneous negotiations, representations, understandings, correspondence, documentation and agreements (written or oral). 14.7.3 Written Amendment. This Agreement may only be changed by written amendment signed by Franchisee and the City Administrator or ot#ier authorized representative of the City, subject to any requisite authorization by the City Council. Any oral representations or modifications conceming this Agreement shall be of no force or effect. 14.7.4 Severability. If any provision in this Agreement is held by any court of competent jurisdiction to be invalid, illegal, void, or unenforceable, such portion shall be deemed severed from this Agreement, and the remaining provisions shall nevertheless continue in full force and effect as fully as though such invalid, illegal, or unenforceable portion had never been part of this Agreement. March 2015 14.7.5 Choice of Forum. The parties hereby agree that this Agreement is to be enforced in accordance with the laws of the State of California, is entered into and is to be performed in the City of Vernon and that all claims or controversies arising out of or related to performance under this Agreement shall be submitted to and resolved in a forum within the County of Los Angeles at a place to be determined by the rules of the forum. 14.7.8 Order of Precedence. In case of conflict betweer the terms of this Agreement and the terms contained in any document attached as an Exhibit or otherwise Incorporated by reference, the order of precedence is as follows: Charter the City of Vernon, the Vernon Municipal Code, the ordinance granting this Franchise, resolutions of the City of Vernon this Agreement, the City's Request for Proposals for Official Police Towing Services, and Franchisee's Response to the City's Request for Proposals for Official Police Towing Services. 14.7.7 Duplicate Oriainals. There shall be two (2)fully signed copies of this Agreement, each of which shall be deemed an original. 14.8 AUTHORITY OF FRANCHISEE. The Franchisee hereby represents and warrants to the City that the Franchisee has the right, power, legal capacity and authority to enter into and perform Its obligations under this Agreement, and its execution of this Agreement has been duly authorized. Section 15. ADDITIONAL ASSURANCES. 15.1 EQUAL EMPLOYMENT OPPORTUNITY PRACTICES. Franchisee certifies and represents that,during the performance of this Agreement, Franchisee and any other parties with whom it may subcontract steal adhere to equal opportunity employment practices to assure that applicants and employees are treated equally and are not discriminated against because of their race, religion, color, national origin, ancestry, disability, sex, age, medical condition, marital status. Franchisee further certifies that it will not maintain any segregated facilities. Franchisee further agrees to comply with The Equal Employment Opportunity Practices provisions as set forth in Exhibit"C". 15.2 BUSINESS LICENSES. Franchisee shall obtain,and pay any and all costs associated therewith, any Vernon Business License, which may be required by the Vernon Municipal Code and all permits, and licenses applicable to Franchisee's operations under this Franchise, which are required of Franchisee by any governmental agency. 15.3 MAINTENANCE AND INSPECTION OF RECORDS. The City, or its authorized auditors or representatives, shall have access to and the right to audit and reproduce any of the Franchisee's records to the extent the City deems necessary to insure it is receiving ail money to which it is entitled under the Agreement and/or is paying only the amounts to which Franchisee is properly entitled under the Agreement or for other purposes relating to the Agreement. The Franchisee shall maintain and preserve all such records for a period of at least 3 years after termination of the Agreement. The Franchisee shall maintain all such records in the City of Vernon, If not, the Franchisee shall, upon request, promptly deliver the records to the City of Vernon or reimburse March 2015 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 personal, salaries, private auditors, travel, lodging, meals and overhead. 15.4 CONFLICT. Franchisee hereby represents warrants and certifies that no member, officer or employee of the Franchisee is a director, officer or employee of the City of Vernon, or a member of any of its boards, commissions or committees,except to the extent permitted by law. Section 16. LIVING WAGES. Franchisee, and any subcontractor(s), shall comply with the City's Living Wage Ordinance. The current Living Wage Standards are set forth in Exhibit'D'. Upon the City's request, certified payroll records shall promptly be provided to the City. Section 17. NOTICES, Except as otherwise provided in this Agreement, all notices required by this Agreement or by Chapter Q of the Vernon Municipal Code shall be given by personal service or by deposit in the United States mail, postage pre-paid and return receipt requested, addressed to the parlies as follows: To City: Chief of Police Vernon Police Department 4305 Santa Fe Avenue Vernon, CA 90058 Copies to: Director of Finance City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 Franchisee: Notice shall be deemed effective on the date personally served or, if mailed, three days the date deposited in the mail. [Signatures Begin on Next Page]_ March 2015 IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by their duly authorized representatives as of the date set forth below. City of Vernon, a Carrfornla charter City [FRANCHISEE'S NAME, a [State and California municipal corporation incorporated in] corporation DATED: DATED: By: By.- Mayor I Mayor Pro-Tern Name. _ -- Title: ATTEST: Name: Maria E. Ayala, City Clerk Title, APPROVED AS TO FORM: Hama Patel, City Attorney March 2015 EXHIBIT A REQUEST FOR PROPOSALS i i k r I I March 2015 EXHIBIT B FRANCHISEE'S PROPOSAL March 2015 EXHIBIT C THE EQUAL EMPLOYMENT OPPORTUNITY PRACTICES PROVISIONS A. Contractor certifies and represents that, during the performance of this Agreement, the contractor and each subcontractor shall adhere to equal opportunity employment practices to assure that applicants and employees are treated equally and are not discriminated against because of their race, religious creed, color, national origin,ancestry, handicap, sex, or age. Contractor further certifies that it will not maintain any segregated facilities. B. Contractor agrees that it shall, in all solicitations or advertisements for applicants for employment placed by or on behalf of Contractor, state that it is an'Equal Opportunity Employer"or that all qualified applicants will receive consideration for employment without regard to their race, religious creed, color, national origin, ancestry, handicap, sex or age. C. Contractor agrees that it shall, if requested to do so by the City, certify that it has not, in the performance of this Agreement, discriminated against applicants or employees because of their membership in a protected class. C 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 retards are confidential or privileged under state or federal law. Nothing contained in this Agreement shall be construed in any manner as to require or permit any act which is prohibited by law. March 2015 EXHIBIT D LIVING WAGE PROVISIONS Minimum Livina Wanes: A requirement that Employers pay qualifying employees a wage of no less than $10.30 per hour with health benefits, or$11.55 per hour without health benefits. Paid.and-Unpaid Days Off: Employers provide qualifying employees at least twelve compensated days off per year for sick leave, vacation, or personal necessity, and an additional ten days a year of uncompensated time for sick leave. No Retaliation: A prohibition on employer retaliation against employees complaining to the City with regard to the employer's compliance with the living wage ordinance. Employees may bring an action in Superior Court against an employer for back pay, treble damages for willful violations, and attorney's fees, or to compel City officials to terminate the service contract of violating employers. March 2015 EXHIBIT B EXHIBIT B FRANCHISEE'S PROPOSAL - 15 - 4� T4V'_f.4 f ' an�uu.ta vLT FRANCHISE TOW FEE PROGRAM PROPOSAL Made To The City of Vernon Police Department 4305 Santa Fe Avenue Vernon, CA 90058 Made By U.S. Tow,Inc. 2119 East 25t' Street Los Angeles, CA 90058 iF -.CL«�_tiL"E! _ _ 7 i i k _L v hI d _. CA -�* 0 . fzi _ .�4 II5 . I_ - \\ 19 E it S act _�4; e4 ;5 Bus-,_; F�_._ i ;Y` a01u9E April 16, 2015 City of Vernon Police Department Attention: Captain Michael Gillman 4305 Santa Fe Avenue Vernon, CA 90058 RE: FRANCHISE TOW FEE PROGRAM Dear Captain Gillman: U.S. Tow, Inc. is pleased to submit this proposal to provide a Franchise Tow Fee Program for the City of Vernon Police Department. Competitive Position U.S. Tow, Inc. originated in 1983. The firm has served the Los Angeles Police Department as the Official Police Garage for the Newton Division since 2004. It additionally serves other governmental entities including the City of Los Angeles Department of Transportation, the California Highway Patrol,the Los Angeles County Sheriff's Department, the City of Los Angeles Housing Authority,the University of Southern California Department of Public Safety and the City of Los Angeles School Police Department. Experience/Management U.S. Tow, Inc. was acquired by Moshe Ben Dayan in 2013. Mr. Ben Dayan assumed the ownership of U.S. Tow with a wealth of previous towing experience. He founded and has operated Classic Tow, Inc. dba Tip Top Tow Service at the same location in Santa Monica for more than 25 years. Tip Top Tow Service is an Official Police Contractor for the Cities of Santa Monica and Beverly Hills. It additionally has long-standing contracts with a number of other governmental entities. -i- City of Vernon Police Department April 16, 2015 Page Two of Three Employees The major management staff of U.S. Tow has an average of 15 years of experience in the towing industry. This staff has operated the Newton Division OPG and the other elements of the firm's business with professionalism and integrity and it stands ready to provide excellent service to the City of Vernon Police Department. Additionally, the hiring and training procedures utilized by U.S. Tow are stringent, and we consider it our utmost responsibility to continue to enforce these procedures in the future. Site U.S. Tow has the distinct advantage of having an existing site located at 2119 East 25t' Street, Los Angeles, which meets all current zoning regulations. This site is located directly across 25'h Street from the northern boundary of the City of Vernon, thereby providing us with immediate access to Vernon. U.S. Tow has a facility which provides a modem, clean, safe, professional environment. The U.S. Tow site consists of approximately 4.0 acres of screened, secured, lighted, signed and cemented area for the impounding and storage of vehicles and approximately 12,600 square feet of enclosed building area for evidence hold, ancillary storage, administration and lien sale auction of vehicles. Tow Vehicles In an effort to serve all of our clients in a timely and effective manner, we are continuously mindful with respect to maintaining a strong, contemporary fleet of tow vehicles. U.S. Tow has a fleet of eight units including five flatbeds and three wheel- lift/standard duty trucks. We additionally have three heavy duty trucks and one heavy duty trailer. This fleet, which we continuously service and upgrade, will allow us to maintain call times well under the 20-minute requirement of the City of Vernon Police Department. Customer Service The employees of U.S. Tow are trained to develop awareness of customer problems,to establish empathy for customers, to understand and adapt to the diverse ethnicities and cultures of customers and to treat customers with respect and their vehicles and personal belongings with professionalism. Each one of us at U.S. Tow understands that difficult situations arise and our "team"philosophy of operation allows us to proactively handle these situations before they become problematic. -ii- City of Vernon Police Department April 16, 2015 Page Three of Three Management Moshe Ben Dayan, the President/CEO of U.S. Tow, has been actively involved in the tow industry since 1989 at which time he established Classic Tow, Inc. dba Tip Top Tow Service which he has operated continuously in Santa Monica since that time. It is significant that Mr. Ben Dayan made the operation of Tip Top Tow Service his one and only business commitment until his purchase of U.S. Tow in 2013. Authorized Contact The person authorized to represent U.S. Tow in negotiations with the City of Vernon Police Department is Moshe Ben Dayan, President/CEO, U.S. Tow, Inc. Mr. Ben Dayan additionally is authorized to execute the agreement with the City of Vernon on behalf of U.S. Tow and is the contact point for any questions or concerns relative to this Proposal. This Proposal will remain valid for a period of not less than ninety(90)days from the submittal date of April 16, 2015. Legal Business Status U.S. Tow, Inc. is an "S" corporation, Federal Tax ID990-1014831. The corporation was founded in 1983. Moshe Ben Dayan is President/CEO of the corporation and Stephanie McColgan is Vice President and Secretary/Treasurer of the corporation. The address of U-S. Tow, Inc. is 2119 East 25t' Street, Los Angeles, CA 90058; the telephone number is (323) 870-7100; the FAX number is (213) 749-0272; and the e-mail address is inoshe@ustow.com. U.S. Tow currently meets all Federal, State and City requirements and there are no changes necessary or requirements unmet for us to operate the Franchise Tow Fee Program for the City of Vernon Police Department. Our site is operative, our office functional, our required insurances in place and our economic viability and professional commitment unwavering. We would very much like to be selected to work with you. Thank you for y .i3r consideration of U.S. Tow for this contract. i Very truly your 5k a� Stephanie McColgan President/CEO Vice President and Secretary/Treasurer -iii- INTRODUCTION U_S. Tow, Inc. has served as the Official Police Garage for the Newton Division of the Los Angeles Police Department for the past 10 years. In this capacity, we have been responsible for towing and storage services for the LAPD,the Department of Transportation, the Los Angeles Unified School District and other City of Los Angeles Departments. During those years, we have developed strong and impeccable guidelines for the conduct of our business. We also have developed strong ties to the community which surrounds our facility and of which we consider ourselves a part. If selected to become the Franchise Tow Fee Program Contractor for the City of Vernon Police Department, we would view ourselves as having a specific contractual obligation to Vernon and it is twofold: (1) every single day of the year and every single hour of each of those days we must provide an organized,timely response to the officers of the Vernon Police Department to pick up and tow vehicles and there can be no lapse in this performance; and(2) at the time that a vehicle is released to its owner, we must provide careful, courteous, empathetic service throughout the release. We must additionally create accurate and complete paperwork as part of this entire process. For those vehicles that are not released and must instead flow through the lien process, a completely different set of rules governs. This process also requires stringent controls and strict compliance with the law. We will be dedicated to providing service to the City of Vernon while, at the same time,maintaining strong standards of quality and safety for our customers—just as we currently do for the LAPD. U. S. Tow has through the years of its operation developed strong training processes for every one of our staff persons. We consider these to be the core of our association with the LAPD, DOT, other City agencies as well as our private clients. We continuously leave no detail of our employee training to chance, making every effort to provide our staff with training that is comprehensive and meaningful. As a result, we are able to keep customer complaints to a minimum. U.S. Tow has always supported involvement in the community in which we work. However, since his acquisition of the business in 2013,Moshe Ben Dayan has made a particular effort to increase the community involvement of the firm. Mr. Ben Dayan understands that investment in the community in which he works represents an investment in U.S. Tow itself. As you evaluate us,we want you to understand that we at U.S. Tow will work very hard every day to provide the very best service to the City of Vernon, the members of Vernon's Police Force and the customers of our firm. Moshe Ben Dayan has had a sterling record of performance at his Classic Tow, Inc. dba Tip Top Tow Service for 25 years as his references and contracts will attest. We bring to this submission our I extensive past OPG experience,Mr.Ben Dayan's expertise and the professional qualifications and dedication of our staff. We do not require a site;we have one_We do not require a functioning office with all of the latest computer and security equipment; we have it We do not require tow equipment;we have the best. We understand that the Request For Proposal for the letting of the Franchise Tow Fee Program contract is competitive,but we ask that you consider our past experience with the LAPD, our long- term operation and staying power, our relationship with the community and our commitment to strong performance at all times and in all circumstances. VEHICLE IMPOUND INFORMATION CENTER The future of towing management is happening today at U.S. Tow, Inc_ with our Vehicle Impound Information Center(VIIC). Our VIIC features were developed by us with the help of law enforcement and have been customized to meet the needs of our customers. The system is not an off-of-the-shelf product;rather it is a system desig3nM to assist us and our law enforcement clients to oversee towing and impound operations while providing accountability and oversight. The web-based system; which provides information regarding impounded vehicles, has been primarily designed to be used by municipalities, but also contains a free public search element designed for use by the general public. VIIC REPORTS The VIIC system provides our law enforcement customers with real-time reconciliation and auditing of remitted fees through a computer system that cannot be altered. This system provides very readable PDF reports or reports that can be downloaded into a CSV file for the Department's use in daily oversight. VIIC system features include: • Detailed monthly activity reports which show all impound and storage activity; • Vehicle reports which show vehicle date in and date out; • Vehicles by"hold"status; • Gross revenue remittance reports; and • Vehicle release fee remittance reports. LAW ENFORCEMENT ACCESS AND INFORMATION The VIIC system allows authorized personnel to quickly and accurately track vehicles, thus ensuring the proper collection of fees for towed and impounded vehicles. Through secured Internet access http://www.opalaviic.com or by stand-alone computers located within authorized law enforcement facilities,users can obtain immediate access to information pertaining to impounded vehicles 24 hours per day 7 days per week. This information consists of several components including vehicle inventories by vehicle make,license plate,VIN and original location of the impound. PUBLIC ACCESS AND INFORMATION Although the information available to law enforcement agencies is more comprehensive that that available to the general public,the VIIC system also provides the public with valuable real-time information which facilitates the location of impounded vehicles. With the VIIC system, the public can determine the location of vehicles through Internet access. Required search information includes the license plate number and VIN. Once the vehicle is located, the VIIC system provides the U.S. Tow name and address, directions to our facility,release hours,fees incurred and a simple matrix by which fees can be calculated. 2 GENERAL SCOPE OF WORK/ WORK PLAN FACILITY U.S. Tow's facility is a point of great pride for its owner and management. Our facility consists of state-of-the-art construction and contains clean, well organized, modern evidence hold, ancillary storage, dispatch and office space. It is situated on a fully concreted lot which is meticulously maintained. We pride ourselves on the image that is conveyed to the governmental agencies with which we are involved,the public that we serve and the surrounding community and this image is carefully monitored. Our location complies with all City of Los Angeles zoning requirements for a towing operation and auto park, with a zoning designation of M3-1, and no Conditional Use Permit is required. We believe that U.S. Tow sets the bar for the way in which a towing operation facility should appear. Our property contains 174,240 square feet(4.0 acres)with aluminum and steel fencing which is eight feet in height and is topped with concertina wire. The yard has concrete flooring and contains capacity for 750 vehicles. Because of this large capacity, we are able to store impounded vehicles for as long as is deemed necessary by the Police agency involved. The yard is very well lighted and there are 50 cameras providing 24-hour video surveillance (archived for a minimum of 180 days). Our storage yard is immediately adjacent to our business office and is attended at all times by our staff members. U.S. Tow has personnel on-site 24 hours per day 365 days per year and we are open to the public between 7.00 a-m. and 7.00 p.m. seven days per week 365 days per year. We are also always available to accommodate special City events. Our property has been leased to U.S. Tow on a long-term basis. Our property lease was renegotiated shortly after Moshe Ben Dayan acquired the company in 2013. The initial lease term is for five years and runs from September, 2013 to September, 2018. Following that period, we have two options of five years each, with the lease ultimately terminating in 2028. Administrative Facility Our facility contains approximately 12,600 total square feet of building area and houses four separate personnel offices, dispatch, accounting, a filing room for auction records and other files, a lien sale area, an IT area, a classroom/break room for company and community use, an Evidence Hold Area and ancillary storage space. Evidence Hold Area This 2,600-square-foot secure area has 24-hour surveillance and limited access with specific rules for entering and exiting. It is equipped with two roll-up doors for 3 unobstructed access and has a capacity of 10 vehicles. There is an additional secondary Evidence Hold Area which is protected by one metal roll-up door and a bullet proof ballistic glass pedestrian door as well as an evidence property room. Our Evidence Hold Area has a specifically designated inspection area which is accessible only to designated U-S. Tow personnel and Police officials. Indoor Workshop Our facility has an indoor workshop for the storage of heavy equipment_ Our facility additionally contains one four-post hydraulic lift,two air compressors, three propane forklifts, one tire changing machine and one digital scope camera. Physical Location The facility of U.S. Tow is located at 2119 East 25t' Street, directly across 25"' Street from the northern boundary of the City of Vernon. TOW EQUIPMENT The staff and management of U.S. Tow, Inc. have many combined years of experience with various types of tow equipment. This experience has resulted in the knowledge that deploying the correct equipment is critical to the efficiency and success of Official Police Tow operation. All of our tow equipment is equipped as provided in the California Vehicle Code. Another very important element for our operation is that our tow drivers have the best and most appropriate equipment to complete tasks in a damage free and expeditious manner. The area in which we are located has a diverse impound environment. Vehicles often are stripped of major components such as wheels, engines and body panels and sometimes are burned and/or wrecked. At the other end of the spectrum, we handle custom and high value vehicles. Our equipment, including flatbeds and wheel- lift/standard duty trucks as well as heavy duty equipment including trucks and a trailer, is engineered to accommodate these diverse situations in a timely and efficient manner. Our wheel-lift/standard duty trucks have been engineered and manufactured to be efficient and fast, thereby providing for the immediate removal of vehicles from major thoroughfares. With these trucks,peak hour tow away zones can be cleared expeditiously to relieve traffic congestion and provide the public with clear paths to their destinations during heavy traffic periods while allowing City personnel to respond to other duties without unnecessary delays. With the utilization of experienced and trained personnel, an impounded vehicle can be removed in just minutes by a wheel-lift/standard duty truck. Wheel-lifts additionally provide damage free towing by lifting vehicles by 4 only their tires. Body panels, front ends,bumpers and under carriages are not touched by the towing unit, thereby ensuring damage free handling of towed vehicles. Wheel- lift/standard duty trucks also allow efficient towing from parking garages and towing from off-road areas. Our flatbed carriers have been selected to provide efficient and damage free vehicle removal and transport_ Vehicles with extensive damage, missing wheels or which are heavily burned are suited for removal by flatbed. Flatbeds also are well suited to hybrid, electric, exotic and custom vehicles. In addition,bulk items such as cargo from damaged vehicles, large or heavy vehicle components from"chop shops,"motorcycles or stolen vehicles can be safely loaded onto flatbeds to provide damage free transport with minimal loading time. Flatbed carriers also provide the capability to transport two vehicles at the same time,thus allowing us to respond quickly and efficiently when requests for service are made in proximate geographic locations or when requests are made in a narrow time frame. Our choice of Kenworth and Hino chasses is based upon their capability to handle two vehicles at once and/or to transport heavy and/or oddly shaped cargo safely. Our heavy duty trucks, with their adjustable booms and five-ton lifting capacity, and our heavy duty trailer are available for the heaviest requirements, including the towing of large and oversized vehicles, and again attest to our well- rounded, complete towing capability. Our drivers are highly trained to operate all of our tow units. In particular, flatbed units require highly skilled drivers with a thorough knowledge of the machinery involved. They also are trained to unlock locked vehicles, a frequent request from our Police clients. Our staff is trained to operate units with the priority of safety to themselves and to the public they serve. Continuing education enhances their knowledge base and ability to perform the tasks involved. If selected to be the Official Police Tow for the City of Vernon Police Department,we will immediately file with the Department the name, address, date of birth, driver's license number and all other information required relative to each of our drivers. We will also notify the Department of any driver no longer employed by us as well as the identity of any driver whose license is suspended. Our training procedures are in writing and a copy will be provided to the Vernon Police Department. U.S. Tow, Inc. also is a member in good standing of the California Department of Motor Vehicles Pull Program. Within our facility,the use of forklifts with special attachments provide efficient and damage free vehicle movement and/or vehicle release. Our forklifts are powered by liquid propane,providing low emission levels and reduced carbon monoxide release. U.S. Tow constantly monitors trends in tow equipment, vehicle impounds and safety practices. It is through this due diligence that we are able to provide our clients and the motoring public with the highest level of safety and service. s U.S. Tow has a total of 11 tow units, including three wheel-lifts, five flatbeds, two wreckers and one tractor_ We also have one trailer. In addition,U.S. Tow has access to the 23 trucks of Tip Top Tow Service in case of a large emergency operation or a disaster operation. A listing of the tow units of U-S. Tow is provided on the following page. TWO-WAY RADIO COMMUNICATION EQUIPMENT U.S. Tow, Inc. uses Kenwood hardware for its two-way radio system. The system employs mountain-top repeaters to maximize coverage area and provide reliable, quality communication, thus enabling instant access to our fleet and personnel. Our two-way radio communication equipment also sends and receives Police tow requests between dispatch and our tow units on a first priority basis. Through its use, all of our clients benefit from faster service, increased efficiency, quick schedule or task changing and higher productivity. DISPATCH COMPONENTS U.S_ Tow, Inc. utilizes an efficient dispatch system which features three components— proper tools, adequate staffing and management oversight. Our use of vehicle tracking and computerized dispatch is integrated to maintain the highest level of service. Our system includes time stamping of all requests received as well as notation of the exact time the request is assigned to a tow unit,the time the tow unit arrives at the scene of the request and the time that the tow unit returns to the U.S_ Tow facility. Our system also assigns a number to each tow request for tracking purposes. Our dispatch terminals are dedicated to the function of dispatch only. Our radio communications equipment sends and receives Police tow requests between dispatch and the tow units on a"first priority" basis_ The dispatchers of U.S. Tow are trained in the effective use of radio equipment in order to maximize efficiency. The dispatch office is equipped with a telephone system capable of receiving tow requests on a"first priority"basis and dedicated telephone lines ensure "first priority"to "Police"calls. Dispatch is a dedicated function on a 24-hour per day, seven-day per week, 365-day per year basis. Dispatchers are available to release vehicles seven days per week between 7 a.m. and 7 p.m. and for a minimum period of four hours after any special event. Every member of our office staff is cross-trained in order to provide an excellent service standard in the execution of dispatch duties. INFORMATION TECHNOLOGY KNOWLEDGE The computer system utilized by U.S. Tow is the Impound Management System/Information Management System (IMS). It is used for both dispatch and accounting. The program utilizes functions which provide dispatch, vehicle inventory 6 TOW UNITS U.S. Tow, Inc. owns 11 tow units and one trailer, as follows: Weight Unit Type _ Year Make (lbs) VIN 11 I Wheel-lift 2009 Dodge 19,000 - 7 _ 5500 15 Flatbed 2010 I Hino 258 25,500 19 Flatbed 2005 Kenworth 26,000 T-300 22 Wheel-lift 2005 Ford F-550 19,000 26 Flatbed 2006 Kenworth 26,000 - -" T-300 27 I Flatbed 2006 Kenworth 26,000 f T-300 13 Wheel-lift I 20I3 Chevy 15,000 --1 3500 HD 20 Flatbed 2015 Peterbilt 26,000 25 Wrecker 2014 i Peterbilt 44,000 ! i 16 Wrecker ' 2015 Kenworth 35,000 80 Tractor 2007 Freightliner 80,00� 81 Trailer 2015 Landoll I 97,000 i 7 search, property removal with receipt, inspection of a vehicle with receipt, evidentiary hold area search and auditing, lien processing including the removal of liened vehicles, VW verification of make and model, cash on delivery options and private property impound tracking. Not all employees are granted access to sensitive information contained in the tow program. Only management and ownership can access a]1 records pertaining to any particular vehicle. Any changes made in the computer record concerning a vehicle are tracked through an exception report. The exception report is checked every morning by management to ensure that no unauthorized changes have been made to any computer record. The programs also have a fleet function by which U.S. Tow can maintain fleet data as well as an accounting function for maintenance of accounts payable and accounts receivable. IMS also has reporting functions that allow us to keep daily, weekly and monthly internal reports. Our accounting department additionally uses QuickBooks to maintain a checks and balances system for all accounts. Quickbooks provides U.S. Tow with a controlled method by which to track accounts, print statements and maintain a ledger for monies that flow in and out of the company. Quickbooks Pro is used to pay bills, record payroll, reconcile cash and keep track of vendor and employee ledgers and advances. A daily back-up of our computer system is completed and stored at a remote location. An outside firm monitors this back-up on a daily basis. We additionally have software support readily available for our tow program. All files are backed up several times per day and we have a working generator in case of a significant power failure. Our computer system, software and tow program are set up to generate franchise fees (which are placed in a separate account)and impound information and the safeguards are in place to monitor these functions at all times. If U.S. Tow is selected by the City of Vernon Police Department to be its Official Police Tow,Police personnel will be assigned a user name and password which will allow them access to this system on a 2417 basis. As such,Police personnel will be able to electronically view all documents as well as to scan and print the documents and thereby have a physical copy. Our dispatch, tow lot management, impound and franchise fee software has a long history of use within U.S. Tow. Our hardware has been carefully selected to provide both reliability and ease of use. Computer work stations, servers, telecommunications and video surveillance (the Kantech System)have been chosen and implemented to provide the highest levels of security, accuracy, accountability and service. 9 MONTHLY REPORTS If selected to be the Official Police Tow for the City of Vernon Police Department, U.S. Tow will submit a monthly report to the Chief of Police and Finance Director which, as per the City of Vernon requirement, includes the following: *Total Police Impounds. *Number of times dispatched by the Vernon Police Department. `Number of calls resulting in impounds. *Number of vehicles sold on lien sale under authority of Section 3072 Civil Code and reporting said lien sales as per authority of Section 22705 CVC. *Number of vehicles sold under authority of Section 3073 Civil Code. *Names and addresses of buyers and description of vehicles when sold. *Number of calls answered in which time beyond one hour was required. EVIDENCE HOLD VEHICLES U.S. Tow, Inc. has 10 years of experience as an OPG for the City of Los Angeles Police Department and thus of dealing with vehicles and Vehicle-related components that are on "hold" for evidence or require processing by a crime lab unit. Moshe Ben Dayan, the owner of U.S. Tow, has 25 years of experience in the handling of evidentiary bolds and maintaining the integrity of the "chain of custody" in conjunction with his other public agency towing operations through his firm Classic Tow, Inc, dba Tip Top Tow Service. All of our personnel are acutely aware of the importance of handling vehicles "ith evidence holds. A set of specific steps are consistently employed in order to ensure that vehicles are not mishandled and that the "chain of custody" is maintained at all times. All of our personnel receive training on how to deal with vehicles from the moment a tail is generated until the final disposition of the vehicle occurs. • Dispatchers advise drivers of a request for service for a vehicle that requires special handling due to evidence or criminal lab processing. • Drivers request from the impounding officer or the officer in charge at the scene of the impound whether any special handling is required so as not to touch surfaces of a vehicle, not to enter a vehicle, not to disturb possible material under or on a vehicle or any other special requests dealing with the handling of the vehicle. • Once evidence hold vehicles arrive at the storage yard, drivers sign the Evidence Log Book noting the time, date,year, make, model, color, VIN, license and names of any persons who will enter the Evidence Hold Area in conjunction with the vehicle. 9 0 Following placement of a vehicle or components of a vehicle within the Evidence Hold Area and the securing of the Hold Area, drivers retufn to the office to notate the date and time of completion of the vehicle and/or vehicle components placement. • Drivers receive instruction on the handling of vehicles utilizing our equipment so that the vehicle can be transported without disturbing fingerprints and/or other physical evidence contained on or inside it. As vehicles arrive at our location,they are entered into our vehicle inventory database and the Evidence Log Book. In order to verify the time of entry, U.S. Tow utilizes a time stamp along with the manual entry in the Evidence Log Book. Within the vehicle database, a special "hold" is placed and this creates a flag which must be specifically acknowledged prior to any change such as an authorized release by the agency placing the original hold on the vehicle. Often vehicles get released from"hold" status prior to the release of the vehicle to the owner or interested party. Vehicles that are released from a"hold" status prior to removal by the owner or interested party have specific notes entered in the vehicle database as well as the agency, name, ID, date and time that the vehicle's "hold" status was removed. Associated paperwork is additionally attached to the vehicle record (CHP 180). Once the vehicle has had the"hold"released, it is removed from the Evidence Hold Area and placed in the general vehicle inventory. U.S. Tow has a segregated, completely enclosed evidence warehouse with a storage capacity of a minimum of 10 evidentiary/criminalistic hold vehicles. U.S. Tow also maintains an area that can be converted to a temporary secure hold area in the event of a large scale crime involving many vehicles or bulk items. A minimum of six additional vehicles can be secured in this area. Evidence Hold Area entry is limited to OPG employees and concerned law enforcement officials and video surveillance is used to enhance the security of vehicles within the Evidence Hold Area. An electronic record of the person, time, date and duration of access is maintained. This is accomplished through entry system technology which features a magnetic lock system with unique entry key fob assigned only to management. The supplier of our entry control and electronic entry and exit recordkeeping is Kantech. The Kantech system features electronic recording and physical hardware that is secure and that provides access limited to management in order to ensure that the "chain of custody" is not compromised. All entries are also noted in the Evidence Log Book. The elements of recording and recordkeeping of entry to our Evidence Hold Area allow management and law enforcement to validate all access. The area has large, clear posting prohibiting entry. The Evidence Hold Area features ample lighting to aid detectives and/or evidence technicians in the processing of vehicles. U.S. Tow also has a vehicle lift available on-site to aid investigators. Through all of these mechanisms,we ensure that only vehicles or vehicle parts that are held for evidence or criminalistic hold are stored within the Evidence Hold Area. 10 With respect to the City of Vernon Police Department, if U.S. Tow is selected as the Official Police Tow, notification will be provided by U.S. Tow to the Police Captain or his/her designee of vehicles with a"hold" that are stored in excess of 72 hours. As per the City of Vernon Police Department requirement, "holds" will expire 10 calendar days after the date of a tow unless otherwise extended by a Police Department employee. LIEN SALE EXPERIENCE U.S. Tow, Inc. files for vehicle liens following California Civil Code Sections 3068.1, 3071, 3072 and 3074. Ultimately, not all liens started end in disposal through public auction_ Many vehicles are redeemed by registered owners, legal owners or authorized interested parties, thus accomplishing the intended purpose of notification followed by redemption. In the event that a vehicle is not redeemed, a sale is conducted to satisfy the outstanding lien and avoid the stockpiling of vehicles. Vehicle disposal through public auction has been performed for more than 10 years by 1:1_S. Tow and more than 20 years by Moshe Ben Dayan via other towing operations that he owns and operates. LJ_ _ Tow sells vehicles in a fair and impartial manner to the highest bidder. Our sale list is posted in public view at our facility a minimum of 10 days prior to the sale date, and vehicles are available for inspection one-and one-half hours prior to the sale time on the sale date. We continually strive to improve levels of customer service to members of the public who attend our weekly auto auctions. U.S. Tow is bound by California Civil Codes relating to the disposal of impounded vehicles. U.S_ Tow also stringently follows the fee structure outlined in the California Civil Codes that pertain to the processing of vehicle liens_ If selected to be the Official Police Tow for the City of Vernon Police Department, U.S. Tow will supply a list of vehicles on a monthly basis that we intend to lien sale prior to actual sale for approval by the Department. We will additionally review any other elements of our lien sale operation requested by the Department. CUSTOMER SERVICE U.S. Tow takes extreme pride in its exceptional customer service. The impound process is by its very nature a stress producing experience and we attempt in every possible way to expedite the process and make it as comfortable as possible. Registered owners redeeming vehicles can expect to deal with employees who are well trained, courteous and professional and with a facility which is clean,modern and secure and which provides them with comfort in the event that they need to wait for appropriate paperwork, acceptable form of payment or a towing service for a disabled vehicle in order to complete the release process. U.S_ Tow completely understands the responsibility for the proper release of vehicles to parties who have a legal right to take possession and we take all necessary precautions through established procedures throughout the release process. Our personnel are trained to verify that a proper release has been issued by us or by the 11 relevant governmental impounding agency prior to the release of vehicles that have either a statutory or evidence hold_ A dedicated computer system is available to check the "scofflaw" status of vehicles prior to their release. Personal property is released to identified, authorized persons and is inventoried and notated on the vehicle record. Our staff also is trained to answer general questions regarding the disposition of vehicles and lien sale auction information. Computer equipment with access to our vehicle inventory software is available to handle high-volume release situations. COMMUNITY SUPPORT AND INVOLVEMENT U.S. Tow understands the importance of support of and involvement in the local community. Even though we are physically located in an industrialized portion of the City of Los Angeles, we are well aware that there is a significant community of residents surrounding our site. As such, it has been our continuing philosophy of operation to identify and support portions of the community and community projects in need of financial sponsorship and the donation of other assets_ We additionally have a well appointed classroom/break room at our facility which we offer for community use. 12 U.S. TOW, INC. TOW RATESIFEES TowingStara n Light Duty $149-00 3,00 (under 10,000 GVWR) Motorcyc l e $14 8,00 $20.00 Medium Duty- 250.00 $55.00 Heavy Duty $300,00 S65_00 i Low Boy $300-00 $65.00 Super Heald Duty! 475.00 65.00 Wrecker Forklift $ 95.00 er hour Service Call $74.00 BLdk It= I $12,00 (per lletlper day) * Towing/recovery work/transport is assessed portal to portal. There is no fee variation for night tows. * Storage/impoundment rates are the same for day and night. Our release hours are 7:00 a.m. —7:00 p.m. and there are no after hours releases. • Towing rates are subject to 30-minute increase increments after the first hour. • Storage for less than 24 hours is charged as one day. After 24 hours, storage is charged per calendar day. Service calls are based on a one-half hourly tow rate. • Vehicles not redeemed within 72 hours are subject to lien sale/notice fees of $70.00- S 100.00. All City vehicle tows within 30 miles are free_ • All City vehicle tire changes within 30 miles are free. r All towing and storage rates are the average of those charged to the Los Angeles Police Department,the California Highway Patrol and the Los Angeles County Sheriffs Department. U.S. Tow, Inc. is open to negotiating the final ir_c its - with the City of Vernon. However, we are asking fo�y�of 7% of gross receipts which is the amount that we currently charge LAPD. 13 ABILITY OF U.S. TOW, INC. TO PERFORM THE NECESSARY FUNCTIONS U.S. Tow, Inc. was originally founded as a California"S"corporation in 1983. The company was purchased by Moshe Ben Dayan in 2013. Mr. Ben Dayan is the sole Owner/President/CEO and owns 100% of the corporation_ U.S. Tow, Inc_ has its only location at 2119 East 25`' Street, Los Angeles, CA 90058_ The firm has a total of 19 employees. STATE AND CITY LICENSES U.S. Tow, Inc. is licensed to operate in the State of California and the City of Los Angeles. Our licenses include City of Los Angeles Parking Occupancy Tax M; City of Los Angeles Professions/Occupations; City of Los Angeles Police Commission Permit for Towing Operation; City of Los Angeles Police Commission Permit for Master Auto Park; City of Los Angeles Police Commission Permit for Auto Park; and State of California Department of Motor Vehicles Motor Carrier Permit. EXPERIENCE OPERATING A COMPLEX BUSINESS As stated above, Moshe Ben Dayan purchased U.S. Tow, Inc_ in 2013. Mr. Ben Dayan came to the purchase with a strong understanding of the highly regulated and complex operations of an Official Police Garage/Police Tow. Since his purchase of U.S. Tow, Mr. Ben Dayan has been working to improve the already strong operations and level of service of U.S. Tow's Newton Division OPG. Based upon commendations that he has received from members of the Los Angeles Police Department, he appears to be succeeding. In addition to U.S. Tow,Mr. Ben Dayan owns and operates Classic Tow, Inc. dba Tip Top Tow Service. He founded and has owned and operated this company since 1989 and it has been his full-time and only business involvement until his purchase of U.S. Tow. Tip Top Tow Service is the Official Police Tow for both the Cities of Santa Monica and Beverly Hills. The firm has worked in this capacity for Santa Monica since 1993 and for Beverly Hills since 2012. Service to these entities is highly regulated and involves impounding of vehicles including owner requests, statutory holds and evidence holds as well as the roadside servicing of City-owned vehicles and traffic accident assistance. Mr. Ben Dayan has additionally participated in the California Highway Patrol's (CHP) rotation Tow Service Agreement(TSA) since 1992, providing general towing and impound and storage services. Additionally,Mr. Ben Dayan is a Freeway Service Patrol provider for the Los Angeles County Metropolitan Transportation Authority(LACMTA), providing freeway roadside services to stranded motorists since 2005. The contracts let 14 by this Agency are highly regulated with scheduled and random inspections of tow truck units and facilities conducted by LACMTA itself as well as by the State of California Department of Transportation(Caltrans) and a special unit of the CHP known as "David Units." The level of regulation imposed by the CHP's David Units is unequaled in the towing industry, with strict enforcement of rules and regulations as well as of drivers and trucks in the field through monitoring by GPS, Caltrans and the CHP itself The contracts of LACMTA mandate that detail be paid and rules adhered to relative to a multitude of policies and procedures and that standards be strictly enforced. Moshe Ben Dayan and Tip Top Tow Service have never had a contract fail to renew due to substandard service or violation of any rules and/or regulations. The successful operation of a tow business is complex, with many areas of responsibility. We are responsible 24 hours per day 365 days per year for dealing with the vehicles and personal possessions of many people, some of whom are angry about having been towed in the first place, distraught over damage to their vehicle or who are dealing with the consequences of having a family member or friend injured in an automobile accident. We are responsible 24 hours per day 365 days per year for dealing with law enforcement and the complexities of evidentiary holds, constantly being attentive to the issues involved in the potential contamination of important evidence. We are responsible for conducting lien sales with careful attention to the legalities of this procedure such that we do not err either on our own part or for the interests of the customer. We are responsible to our employees for the creation of a work environment that is comfortable, clean and conducive to minimizing the stress of a business which requires proficiency in taking calls, dispatching drivers accurately and quickly and performing tow services in an efficient, orderly and courteous manner. We are responsible to the many vendors with whom we do business including insurance providers and equipment and parts providers and we must be vigilant at all times regarding the licenses and permits that we hold. And, we are responsible to the community to maintain a top-notch facility which is environmentally conscious with minimal noise and pollution and to participate in community events and sponsorships. CAPABILITY AND EXPERIENCE OF KEY PERSONNEL MANAGEMENT Moshe Ben Dayan,President/CEO. Moshe Ben Dayan is a true "pro" within the tow industry. His first involvement with the industry was in 1989 when he founded Tip Top Tow Service in Santa Monica with one truck. Since that start, he has built Tip Top Tow Service into a strong, successful corporation now known as Classic Tow, Inc., dba Tip Top Tow Service. Tip Top Tow Service has a facility in Santa Monica wholly owned by Mr. Ben Dayan, 19 trucks and 23 employees. Among numerous governmental and private affiliations are Official Police Tow contracts with the Cities of Santa Monica and 15 Beverly Hills, Freeway Service Patrol contracts with the Los Angeles County Metropolitan Transportation Authority and service contracts with the Los Angeles County Sheriff s Department, the California Highway Patrol, the U.S. Postal Service and the Federal Bureau of Investigation. Mr. Ben Dayan purchased U.S. Tow, Inc, in 2013 and through this entity is the Official Police Garage for the Newton Division of the Los Angeles Police Department. U.S. Tow additionally provides service to the Los Angeles County Sheriff s Department and the California Highway Patrol among others. Mr. Ben Dayan's specific responsibilities at U.S. Tow include overall management of all operations including financial operations; company policy including contract procurement and compliance; project staffing; customer relations, community relations; and equipment/facility procurement and operations. The resume of Mr. Ben Dayan is included as an attachment to this Proposal. INTERNAL STAFF Mohammed Jaweed, CFO. Mohammed Jaweed has had a wealth of experience as Controller for several major companies. He is extremely skilled in financial, accounting and bookkeeping functions. With a more than 25-year background in financial reporting of all kinds, be brings to U.S. Tow the ability to review the daily activities of the Newton Division OPG including monitoring of vehicle release fees, gross receipts fees, collections and business license fees. He is additionally skilled in the monitoring of auditors and insurance companies to maintain our liability and Worker's Compensation insurances and to manage all internal and external payroll reporting. Mr. Jaweed worked as an external/outsource resource for Mr. Ben Dayan for more than 20 years prior to his employment at U.S. Tow. The resume of Mr, Jaweed is included as an attachment to this Proposal. Richard L. Kettering H, General Manager. Richard Kettering has been an employee of U.S. Tow, Inc. since 2009. As such, he is extremely knowledgable regarding all of the operations of our business. Short of calling him a skilled "jack of all trades," it is certainly appropriate to note that his responsibilities are and have been significant and multidimensional. Mr. Kettering has management experience; he is knowledgable with regard to all aspects of the OPG system; tow driver safety compliance; complaint/problem resolution for customers and Police agencies; employee relations including hiring and dismissal; lien sales auction operation (Mr. Kettering is the auctioneer) and paperwork, and security camera content review. The resume of Mr. Kettering is included as an attachment to this Proposal. Stephanie McColgan, Assistant Manager. Ms. McColgan brings a unique background to U.S. Tow. She has worked with Moshe Ben Dayan since the start of Tip Top Tow Service in 1989 and, as such, is knowledgable with respect to all aspects of the towing industry. At Tip Top Tow Service, she was responsible for the management of the banking/financial aspects of the day-to-day business; payroll computation; daily receipts 16 computation; serving as a back-up dispatcher; resolution of difficult customer, staff and vendor issues; and community/public relations interface. At U.S. Tow,Ms. McColgan prepares lien sale auction paperwork and vehicle release paperwork. She is responsible for the banking activities of the firm as well as human resources/employee applications and other associated paperwork Ms. McColgan also assists the General Manager with other overflow business matters associated with the company. The resume of Ms. McColgan is included as an attachment to this Proposal. AMUNISTRATIVE STAFF The administrative staff of U.S. Tow, Inc. is carefully trained and is knowledgable in the following areas related to company operations: computer software; dispatch; impound reporting; vehicle release procedures; vehicle property removal procedures, statutory hold vehicle release procedures; evidence/criminalistic hold vehicle procedures; lien sale procedures and fees; two-way radio use; telephone system and customer service techniques and procedures; criminal activity reporting; and the prioritization of calls for service. The administrative staff of U.S. Tow also receive continuous training in such aspects of company operations as dealing with hostile people and developing solutions to hostile situations; making effective decisions and implementing those decisions; understanding and adapting to the diverse ethnicities and cultures of customers; and establishing empathy for customers. TOW DRIVER STAFF The tow driver staff of U.S. Tow, Inc_ is carefully trained and is knowledgable in the following areas related to its work: highway safety; towing techniques; rollover and recovery techniques; laws pertaining to operation of tow trucks; customer service; automotive lockouts, and tow truck maintenance. Our tow truck drivers also receive continuous training in the following areas: computer software, impound report reading and understanding; vehicle codes; care and custody of vehicles; forklift operation; vehicle release procedures; vehicle property removal procedures; vehicle inspection procedures; verification of proper release of evidence hold vehicles; verification of proper release of statutory hold vehicles; proper handling of evidence/criminalistic hold vehicles; proper placement and spacing of vehicles, criminal activity reporting; vehicle identification (license plate and VIN); prevention of heat stress, dehydration, exhaustion, stroke and related problems: battery safety; prevention of blood borne pathogens; fire extinguisher use; back injury prevention; and eye protection. All drivers must hold and maintain Level 1 Certification from the California Tow Truck Association. A Staff Flow Chart for U.S. Tow, Inc. is provided on the following page. 17 U.S. Tow, Inc. Staff Flow Chart F—M oshe Ben Dayan President/CEO M0h2mnied Jaweed CF0 Richard Kettering General Manager Stephanie McColgan Ernie Gonzalez Buis Cruz Walter Ruckwardt Assistant Manager Dispatch Manager Driver Manager � Yard Manager Mario Sanchez Rosendo Favaia Jonathan Zeb a Dispatcher Driver Mechanic Yardman Jose Martin Filiberto Hernandez Dispatcher Driver Leonard Sanders Khachik Bekarian Dispatcher Driver Armando Valenzuela Victoria Reyes Drlv(er Dispatcher - --- - , - Victor Arevalo Driver Raul MarrocluirE Driver Carlos Reyes Driver 1� AFFIDAVIT OF NON-COLLUSION BY CONTRACTOR STATE OF CALIFORNIA ) ) SS COUNTY OF LOS ANGELES ) Moshe Ben Dayan being first duly sworn deposes and says that he/she is Owner/President/CEO (lnsen'Sole 0,-ner'.'Partner",'Presrdent,"Secretary',or oiler proper titic) of U.S. Tow, Inc. (insert name orbidderr who submits herewith to the City of Vernon a bid/proposal; That all statements of fact in such bid/proposal are true; "f}lat such bid/proposal was not made in the interest of or on behalf of any undisclosed person, partnership,company,association, organization or corporation; That such bid/proposal is genuine and not collusive or sham; That said bidder has not,directly or indirectly by agreement,communication or conference with anyone attempted to induce action prejudicial to the interest of the City of Vemon, or of any other bidder or anyone else interested in the proposed contract; and further That prior to the public opening and reading of bids/proposals,said bidder. a. Did not directly or indirectly, induce or solicit anyone else to submit a false or sharp bid/proposal-, 1) Did not directly or indirectly, collude, conspire, connive or agree with any else that said bidder or anyone else would submit a false or sham bid/proposal, or that anyone should refrain From bidding or withdraw his/her bid/proposal; C. Did not, in any manner, directly or indirectly seek by agreement, communication or conference with anyone to raise or fix the bid/proposal price of said bidder or of anyone else, or to raise or fix any overhead,profit or cost element of his/her bid/proposal price,or of that of anyone else; d Did not, directly or indirectly, submit his/her bid/proposal price or any breakdown thereof, or the contents thereof, or divulge information or data relative thereto, to any corporation, partnership, company, association, organization, bid depository, or to any member or agent thereof,or to any individual or group of individuals, except the City of Vemon. or to any person 6orpernsonswhc, -ce a partnership or other financial interest vtiith said bidder in his/her business. 1 certify undef perju , hat the above information is correct By:_ Title: Owner/President/CEO Date: April 16 , 01 19 Ltarch 2013 EXHIBIT C EXHIBIT C THE EQUAL EMPLOYMENT OPPORTUNITY PRACTICES PROVISIONS A. Contractor certifies and represents that, during the performance of this Agreement, the contractor and each subcontractor shall adhere to equal opportunity employment practices to assure that applicants and employees are treated equally and are not discriminated against because of their race, religious creed, color, national origin, ancestry, handicap, sex, or age. Contractor further certifies that it will not maintain any segregated facilities. B. Contractor agrees that it shall, in all solicitations or advertisements for applicants for employment placed by or on behalf of Contractor, state that it is an "Equal Opportunity Employer" or that all qualified applicants will receive consideration for employment without regard to their race, religious creed, color, national origin, ancestry, handicap, sex or age. C. Contractor agrees that it shall, if requested to do so by the City, certify that it has not, in the performance of this Agreement, discriminated against applicants or employees because of their membership in a protected class. D. Contractor agrees to provide the City with access to, and, if requested to do so by City, through its awarding authority, provide copies of all of its records pertaining or relating to its employment practices, except to the extent such records or portions of such records are confidential or privileged under state or federal law. E. Nothing contained in this Agreement shall be construed in any manner as to require or permit any act which is prohibited by law. - 16 - EXHIBIT D EXHIBIT D LIVING WAGE PROVISIONS Minimum Livina Wages: A requirement that Employers pay qualifying employees a wage of no less than $10.30 per hour with health benefits, or$11.55 per hour without health benefits. Paid and Unpaid Days Off: Employers provide qualifying employees at least twelve compensated days off per year for sick leave, vacation, or personal necessity, and an additional ten days a year of uncompensated time for sick leave. No Retaliation: A prohibition on employer retaliation against employees complaining to the City with regard to the employer's compliance with the living wage ordinance. Employees may bring an action in Superior Court against an employer for back pay, treble damages for willful violations, and attorney's fees, or to compel City officials to terminate the service contract of violating employers. - 17 - ORDINANCE NO . 1232 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF VERNON GRANTING TO MR. C' S TOWING OF SOUTH GATE, INC. , A FRANCHISE TOWING SERVICES AGREEMENT WHEREAS, the City of Vernon (the "City" ) is a municipal corporation and a chartered city of the State of California organized and existing under its Charter and the Constitution of the State of California; and WHEREAS, on October 2, 2012, the City Council of the City of Vernon adopted Ordinance No. 1198 adding Chapter 4B of the Vernon Municipal Code to establish a non-consensual franchise towing fee; and WHEREAS, on or about March 2015, the Police Chief issued a Request for Proposals for the City' s Franchise Tow Fee Program; and WHEREAS, the City Council of the City of Vernon desires to grant a Franchise Towing Services Agreement to Mr. C' s Towing of South Gate, Inc . ; and WHEREAS, the City Council of the City of Vernon is authorized by City Charter Section 8 . 9 to grant a franchise in the City of Vernon to any person, firm, corporation, or other entity and to set terms, conditions, restrictions and limitations by ordinance. THE CITY COUNCIL OF THE CITY OF VERNON HEREBY ORDAINS : SECTION 1 : The City Council of the City of Vernon hereby finds and determines that the above recitals are true and correct . SECTION 2 : GRANT OF FRANCHISE. A non-exclusive franchise shall be, and the same is hereby granted by the City Council of the City of Vernon to Mr. C' s Towing of South Gate, Inc . , its lawful successors or assigns to provide official non-consensual police towing services to the Vernon Police Department. Said franchise is further described and depicted in the Franchise Towing Services Agreement, in substantially the same form as attached hereto as Exhibit A and incorporated herein by reference . SECTION 3 : FRANCHISE TERM. The franchise shall endure in full force and effect for three (3) years, subject to the terms and conditions of the Franchise Towing Services Agreement . SECTION 4 : FRANCHISE FEE. The grantee of the franchise, during the life thereof, will pay to the City five percent (5%) of the gross annual receipts of the grantee arising from the use, operation or possession of the franchise . SECTION 5 : VERIFIED STATEMENT OF GROSS RECEIPTS . The grantee shall file with the City Clerk of the City, within three (3) months after the expiration of the calendar year, or fractional calendar year, following the date of the granting of this franchise, and within three (3) months after the expiration of each calendar year thereafter, a verified statement showing in detail the total gross receipts for the grantee derived during the preceding calendar year, or such fractional calendar year, from the provision of official police towing services within the limits of the City. The grantee shall pay to the City within fifteen (15) days after the time for filing said statement, in lawful money of the United States, the aforesaid percentage of its gross receipt for the calendar year, or fractional calendar year, covered by said statement . Any neglect, omission or refusal by grantee to file said verified statement, or to pay said percentage at the times or in the manner hereinbefore provided, shall constitute grounds for the declaration of forfeiture - 2 - of this franchise and of all rights of grantee hereunder. However, grantee has the ability to cure under Section 12 . Further, the City is responsible for insuring that grantee has the appropriate financial institution information for electronic transfer of the franchise fee in a timely manner. Any delays caused by incorrect financial institution information shall not constitute grounds for the declaration of a forfeiture of this franchise . SECTION 6 : WRITTEN ACCEPTANCE REQUIRED. The franchise granted hereby shall not become effective until written acceptance thereof shall have been filed by grantee with the City Clerk. SECTION 7 : ABANDONMENT OF PRIOR FRANCHISES . The franchise granted by this Ordinance is in lieu of all other franchises, rights or privileges owned by the grantee, or by any successor of the grantee to any rights under the franchise, for providing official police towing services throughout the limits of the City of Vernon as such limits exist at the time of the granting of the franchise or as they may thereafter, except any franchise derived under Section 19 of Article IX of the Constitution as that section existed prior to the amendment thereof adopted October 10, 1911 . The acceptance of the franchise granted by this Ordinance shall operate as an abandonment of all such franchises, rights, and privileges within the limits of City as such limits at any time exist, in lieu of which the franchise is granted by this Ordinance . SECTION 8 : EMINENT DOMAIN. The granting of the franchise shall not in any way impair or affect the right of the City to acquire the property of the grantee by purchase or condemnation, and nothing contained in this franchise - 3 - shall be construed to contract away, modify or abridge either for a term or in perpetuity the City' s right of eminent domain. SECTION 9 : VALUE OF FRANCHISE. By acceptance of the franchise, the grantee, for itself, its successors and assigns, agrees that in any proceeding of any character before any court, commission, administrative body, board of arbitration or other public authority, no greater value shall be placed upon the franchise in excess of the cost to the grantee of the necessary publication and any other sum paid by grantee to the City therefor at the time of acquisition. SECTION 10 : NONCOMPLIANCE. If the grantee of the franchise granted by this Ordinance fails, neglects, or refuses to comply with any of the provisions or conditions prescribed in this ordinance or the Franchise Act of 1937 , and does not within ten (10) days after written demand for compliance begin the work of compliance, and after such beginning does not prosecute the work with due diligence to completion, the City, by its City Council, may declare the franchise forfeited. The City may sue in its own name for the forfeiture of the franchise granted pursuant to this Ordinance, in the event of noncompliance with any of the conditions thereof by the grantee, its successors, or assigns . SECTION 11 . CONFORMITY TO RULES AND STATUTORY REQUIREMENTS . The grantee of the franchise granted by this Ordinance shall comply with all of the ordinances and rules adopted by the City Council of the City of Vernon in the exercise of its police powers and not in conflict with the paramount authority of the State . All work undertaken or performed pursuant to the provisions of the franchise shall be of the standard required by law, and by any other body or - 4 - governmental authority having jurisdiction in the premises . Where not in conflict with State law, or other governmental authority having jurisdiction in the premises, tow services shall be performed in accordance with the rules and regulations and ordinances of the City. SECTION 12 : INDEMNIFICATION. The grantee shall indemnify and hold harmless the City, its officers, agents and employees, from all liability for damages proximately resulting from any operations under this franchise . SECTION 13 : ASSIGNMENT. Grantee shall not assign or transfer any interest in the franchise without the express prior written consent and approval of City Council . Any unauthorized assignment or transfer of Franchisee' s rights or obligations under this Agreement shall be null and void and shall constitute a material breach by Franchisee of this Agreement. SECTION 14 : PERFORMANCE BOND. (a) At the option of the City, grantee shall either (a) reduce or eliminate any deductibles or self-insured retentions with respect to the City, its elected officials, officers, employees, agents, representatives, attorneys, and volunteers; or (b) file with the City Clerk a corporate surety bond running to City and guaranteeing payment of losses and related investigations, claim administration and defense expenses. The bond shall be conditioned that grantee shall well and truly observe, fulfill and perform each term and condition of the franchise, and that in case of any breach of condition of the bond the amount of the penal sum therein shall be recoverable. If City elects option (b) above, Grantee shall file such bond within five (5) days after the adoption of this ordinance. (b) Grantee shall maintain the bond in full force and - 5 - effect throughout the term of this franchise, at grantee ' s sole expense . The bond shall be issued by an admitted surety insurer and comply with the requirements of the Bond and Undertaking Law, codified in Code of Civil Procedure Sections 995 . 010 et seq. This franchise shall be considered a "license or permit" within the meaning of the Bond and Undertaking Law, solely for purposes of application of such law to the bonding requirements of this section. SECTION 15 : LIABILITY. The grantee of the franchise under this Ordinance shall be liable to the City for all damages proximately resulting from the failure of the grantee to well and faithfully observe and perform any provision of the franchise or any provision of the Franchise Act of 1937 . SECTION 16 . Repeal . Any ordinance or parts of an ordinance in conflict with this Ordinance are hereby repealed. SECTION 17 : Severability. If any chapter, article, section, subsection, subdivision, paragraph, sentence, clause, phrase, or word in this Ordinance or any part thereof is for any reason held to be unconstitutional or invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this Ordinance or any part thereof . The City Council hereby declares that it would have adopted this Ordinance and each chapter, article, section, subsection, subdivision, paragraph, sentence, clause or phrase thereof, irrespective of the fact that any one or more chapters, articles, sections, subsections, subdivisions, paragraphs, sentences, clauses, phrases or words be declared unconstitutional, or invalid, or ineffective . - 6 - SECTION 18 : Book of Ordinances . The City Clerk, or Deputy City Clerk, shall attest and certify to the adoption of this Ordinance and shall cause this Ordinance and the City Clerk' s, or Deputy City Clerk' s, certification to be entered in the Book of Ordinances of the Council of this City. The City Clerk, or Deputy City Clerk, shall cause this ordinance to be published or posted as required by law. SECTION 19 : Effective Date . This Ordinance shall go into effect and be in full force and effect at 12 : 01 a.m. on the thirty- first (31st) day after its passage. APPROVED AND ADOPTED this day of 2015 . Name : Title: Mayor / Mayor Pro-Tem _ ATTEST: City Clerk / Deputy City Clerk APPROVED AS TO FORM: Brian W. Byun, Deputy City Attorney - 7 - STATE OF CALIFORNIA } } Ss COUNTY OF LOS ANGELES ) I, __ City Clerk / Deputy City Clerk of the City of Vernon, do hereby certify that the foregoing Ordinance, being Ordinance No. 1232 was duly and regularly introduced at a regular meeting of the City Council of the City of Vernon, held in the City of Vernon on Tuesday, August 4 , 2015, and thereafter adopted at a meeting of said City Council held on Tuesday, _ by the following vote : AYES: Councilmembers : NOES : Councilmembers : ABSENT: Councilmembers : And thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon. Executed this day of 2015 , at Vernon, California. City Clerk / Deputy City Clerk (SEAL) - 8 EXHIBIT A CITY OF VERNON FRANCHISEE TOWING SERVICES AGREEMENT BY AND BETWEEN THE CITY OF VERNON AND MR. C'S TOWING OF SOUTH GATE, INC. COVER PAGE Franchisee: Mr. C's Towing of South Gate, Inc. Responsible Principal of Franchisee: Jerry Brown, General Manager Notice Information- Franchisee: Mr. C's Towing of South Gate, Inc. 4421 Mason Street South Gate, CA 90280 Attention: Jerry Brown, General Manager Phone: (323) 249-0575 Facsimile: (323) 249-4998 Notice Information - City: City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 Attention: Daniel Calleros, Police Chief Telephone: (323) 583-8811 ext. 114 Facsimile: (323) 826-1481 Commencement Date: No earlier than thirty-one (31) days after approval by City Council of City of Vernon of ordinance granting franchise to Mr. C's Towing of South Gate, Inc. Termination Date: Three (3) years from Commencement Date, inclusive Consideration: Payment is made by Franchisee to City pursuant to Section 3 of this Agreement. Payment is made to Franchisee by City pursuant to Section 5 of this Agreement. Records Retention Period Three (3) years, pursuant to section 15.3 CITY OF VERNON FRANCHISEE TOWING SERVICES AGREEMENT BY AND BETWEEN THE CITY OF VERNON AND MR. C'S TOWING OF SOUTH GATE, INC. This Agreement is made and entered into by and between the City of Vernon ("City"), a California charter City and California municipal corporation, and Mr. C's Towing of South Gate, Inc. ("Franchisee"), a Police Towing Company with its principal place of business at 4421 Mason Street, South Gate, CA 90280 (collectively, the"Parties")to provide for towing services to the City. The Parties agree as follows: RECITALS WHEREAS, Franchisee shall provide police towing services to the City of Vernon as set forth in the Request for Proposal issued in or about March 2015, Exhibit A, and Franchisee's proposal to the City ("Proposal') dated April 16, 2015, Exhibit B, both of which are attached to and incorporated into this Agreement, by reference. WHEREAS, pursuant to Chapter 413 of the Vernon Municipal Code, Franchisee has applied for a Police Towing Franchise ("Franchise"); and WHEREAS, the City Council has determined that Franchisee has demonstrated compliance with Chapter 46 of the Vernon Municipal Code and has agreed to comply with all provisions of that Chapter; and WHEREAS, it is required that City and Franchisee enter into this Franchise Towing Services Agreement ("Agreement")for police towing services in the City of Vernon; and WHEREAS, additional conditions have been imposed upon this grant of Franchise. NOW, THEREFORE, the Parties do hereby agree as follows: Section 1. GRANT OF FRANCHISE. Subject to approval by the City Council of the City of Vernon of an ordinance granting the franchise and to the requisite thirty-one (31) days' waiting period before such ordinance becomes effective, City grants to Franchisee a Police Towing Franchise authorizing Franchisee to engage in the business of Police Towing as set forth in chapter 413 of the Vernon Municipal Code in the City of Vernon and to use the public streets and rights of way for such purpose. This grant is pursuant to the City's Request for Proposal and to Franchisee's proposal for the Franchise. Franchisee is subject to the terms and conditions specified in Chapter 8.9 of the Charter of the City of Vernon, the provisions of Chapter 413 of the Vernon Municipal Code, the terms and conditions specified in all related resolutions, the terms and conditions of this Agreement, the representations and assurances in Franchisee's application for the Franchise. Section 2. TERM OF FRANCHISE. The term of this Franchise granted to Franchisee shall be for three (3) years, effective from thirty-one (31) days after the date upon which the City Council of the City of Vernon - 2 - approves the ordinance granting the Franchise(the"Effective Date")to the date that is three(3) years from the Effective Date, inclusive. Section 3. FRANCHISE FEES. 3.1 During the term of the Franchise, Franchisee shall pay a franchise fee to City in an amount equal to 5% of Franchisee's gross annual receipts arising from the use, operation or possession of the Franchise, which fees shall be assessed from the date on which the ordinance granting this Franchise became effective and in accordance with Section 413.8 of the Vernon Municipal Code and any Resolution adopted by the City Council and in such other amounts as are set forth in any subsequent resolutions that may be adopted by the City Council at any time during the term of the Agreement. 3.2 The Franchisee shall file with the City Clerk of the City, within three (3) months after the expiration of the calendar year, or fractional calendar year, following the date of the granting of this franchise, and within three (3) months after the expiration of each calendar year thereafter, a verified statement showing in detail the total gross receipts for the Franchisee derived during the preceding calendar year, or such fractional calendar year,from the provision of official police towing services within the limits of the City. The Franchisee shall pay to the City within fifteen (15) days after the time for filing said statement, in lawful money of the United States, the aforesaid percentage of its gross receipt for the calendar year, or fractional calendar year, covered by said statement. Any neglect, omission or refusal by Franchisee to file said verified statement, or to pay said percentage at the times or in the manner hereinbefore provided, shall constitute grounds for the declaration of forfeiture of this Franchise and of all rights of Franchisee hereunder pursuant to the procedures set forth in Sections 11 and 12 herein. However, Franchisee has the ability to cure. Further, the City is responsible for insuring that Franchisee has the appropriate financial institution information for electronic transfer of the franchise fee in a timely manner. Any delays caused by incorrect financial institution information shall not constitute grounds for the declaration of a forfeiture of this Franchise. 3.3 Franchisee shall timely pay all required franchise fees to: City of Vernon Attention: Finance Director 4305 Santa Fe Avenue Vernon, CA 90058 Each payment shall be accompanied by a written statement, verified by the Franchisee or a duly authorized representative of the Franchise, showing in such form and detail as the Finance Director of the City of Vernon may prescribe, the calculation of the franchise fee payable by the Franchisee and such other information as the Finance Director may require as material to a determination of the amount due. 3.4 The first payment of the franchise fee will be due on September 15, 2015, and payments shall be due monthly thereafter on the 15'1' day of each month. 3.5 When Franchisee remits franchise fees to the City, such franchise fees shall be deemed timely paid only if delivered or postmarked on or before the due date. If fees are not timely paid, Franchisee shall be subject to suspension or termination of the Franchise pursuant to Section 14 of this Agreement and/or to any other penalties which may be - 3- established and assessed by the City, including, but without limitation, late fees assessed at the rate of five percent (5%). Section 4. TOWING SERVICES. 4.1 Franchisee shall provide Police Towing services, as set forth in Exhibit A, which is the City's Request for Proposals for Official Police Tow Services, and which includes, but without limitation, strictly adhering to the eligibility requirements, operating regulations, fees schedules, standards for tow truck equipment, standard rules of operation, response time, inspection, information regarding new or terminated tow truck drivers, tow driver training, and as set forth in Exhibit B which is Franchisee's response to the City's Request for Proposals. All services by Franchisee shall comply will all provisions of federal, state and local law and regulation, including, but without limitation Chapter 4B of the Vernon Municipal Code. 4.2 Franchisee understands and agrees that, although the City is granting it a franchise as a police towing service, the City may requisition towing services from other service providers as set forth in Section 4B.12 of the Vernon Municipal Code, or if Franchisee is otherwise unavailable for any reason, in the reasonable discretion of the Vernon Chief of Police and including, but without limitation, suspension or termination of the Franchisee. Section 5. RATES, CHARGES AND PAYMENT. 5.1 The rates and charges for towing and storage in connection with this Franchise shall be established by the Franchisee. The prevailing rates prescribed by the Southern Division of the California Highway Patrol, the Los Angeles Police Department, and the Los Angeles County Sheriff will be considered when establishing these rates. The rate per impound shall be $140.00 and the storage charge shall be $40.00 per day, unless or until otherwise modified by the City. A sign showing the approved rates and charges shall be conspicuously posted in the Franchisee's tow office and shall be posted in a conspicuous place in the interior of each tow truck operated by Franchisee. Franchisee shall provide vehicle owners the option of payment by MasterCard and Visa. Franchisee must provide for after-hours releases of vehicles, and may collect an after-hour release fee. As part of the award of franchise the Franchisee will be requested to establish an after-hours release fee not to exceed '/2 of the impound fee in addition to other established fees. Section 6. REPORTS. Franchisee shall file a monthly towing report with the Chief of Police along with payment of its monthly franchise fees. The report shall be submitted to: Vernon Police Department Attention: Police Chief 4305 Santa Fe Avenue Vernon, CA 90058 The report shall include the information required by Section 4B.10(H) of the Vernon Municipal Code for Franchisee and its subcontractors, certified as true and correct under penalty of perjury by a responsible owner or official of the Franchisee. - 4 - Section 7. FRANCHISEE'S RECORDS. 7.1 The Franchisee shall maintain accurate and complete books and accounts of all revenues and income arising out of its operations under the Franchise and in a manner, which conforms to generally accepted accounting principles. Franchisee's books, accounts and records, arising out of or related to its operation under the Franchise, shall at all times be open to inspection, examination and audit by authorized officers, employees and agents of the City. Such records shall be kept at Franchisee's place of business shown in this Agreement for receipt of notices. 7.2 Franchisee shall require its subcontractors, if any, who perform Police Towing services in connection with the Franchise to keep and maintain books of account and other records showing all business transactions conducted by such subcontractors in connection with the Franchise. Franchisee agrees to use its best efforts to avoid duplication of reporting between Franchisee and its subcontractors. Section 8. TOW VEHICLE AND DRIVER REPORTING COMPLIANCE, AND IDENTIFICATION. 8.1 Franchisee shall maintain on file with the City, a complete and accurate listing of every vehicle operated by Franchisee for police towing services. Franchisee shall certify, in a form acceptable to City, that every such vehicle conforms with regional and State vehicle emission standards ("emission standards"), and shall provide documentation of compliance on written request of the City. Franchisee understands and agrees that failure to comply with emission standards may result in suspension, termination or non-renewal of a Franchise 8.2 Every vehicle operated by Franchisee and for Police Towing services in the City shall bear the following identification: Franchisee's trade name, monogram or insignia, the Franchise vehicle number, together with Franchisee's telephone number painted on both sides of the vehicle. All lettering mentioned in this paragraph shall be not less than 2-114" in height and not less than 516 stroke. The Franchisee agrees to remove the Franchise vehicle number and all other information within 30 calendar days after the Franchise is terminated or the vehicle is sold, transferred or taken out of service. 8.3 Franchisee shall file with the Vernon Police Department, the name, address, date of birth, driver's license number, and all identification required of any tow unit driver working for Franchisee, whether as an employee or as a contractor, which information shall be filed not later than ten (10) business days following the effective date of employment or engagement. Franchisee shall also notify the Vernon Police Department within ten (10) business days of the following occurrences: the license suspension of any tow unit driver, and the end of employment, or engagement, of any tow unit driver with Franchisee. Section 9. INDEMNIFICATION OF CITY. 9.1 Franchisee shall indemnify and hold the City harmless from and against any and all loss, damages, liability, claims, suits, costs and expenses,fines, charges or penalties whatsoever, including reasonable attorney's fees, regardless of the merit or outcome of any such claim or suit, arising from or in any manner related to the services provided or business conducted under Chapter 4B of the Vernon Municipal Code or otherwise pursuant to this Agreement. - 5- 9.2 Franchisee shall indemnify the City, defend with counsel approved by the City, protect and hold harmless the City, its officers, employees, agents, assigns, and any successor or successors to the City's interest from and against all claims, actual damages (including but not limited to special and consequential damages), natural resources damage, punitive damages, injuries, costs, response, remediation and removal costs, losses, demands, debts, liens, liabilities, causes of action, suits, legal or administrative proceedings, interest, fines and charges, penalties and expenses (including, but not limited to, attorneys' and expert witness fees and costs incurred in connection with defending against any of the foregoing or in enforcing this indemnity) of any kind whatsoever paid, incurred or suffered by, or asserted against,the City or its officers, employees, agents or the Franchisee arising from or attributable to any repair, remediation, cleanup or detoxification, or preparation and implementation of any removal, remedial, response, or closure or other plan (regardless of whether undertaken due to governmental action) concerning any hazardous substance or hazardous waste at any place where the Franchisee stores or dispose of solid or hazardous waste. The foregoing indemnity is intended to operate as an Agreement pursuant to the Comprehensive Environmental Response, Compensation and Liability Act, 42 United States Code Section 9607, and California Health and Safety Code Section 25364, and any successor provisions, to insure, protect, hold harmless, and indemnify the City from liability. Section 10. INSURANCE REQUIREMENTS. 10.1 Franchisee shall, at its sole cost and expense, procure and maintain in full force and effect, throughout the term of this Agreement, inclusive of any renewal term granted by City, insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the services hereunder by the Franchisee, its agents, representatives, employees or subcontractors. Franchisee shall procure and maintain insurance policies of the types and meeting the requirements set forth below, and shall provide to the City a Certificate of Insurance, or other such evidence reasonably acceptable to the City, verifying the existence of such policies: 10.2 Minimum Scope of Insurance Coverage. Franchisee shall procure and maintain policies of insurance with minimum scopes of coverage AT LEAST as broad as the following: (a) Comprehensive General Liability Insurance. (b) Comprehensive Vehicle Liability Insurance. (c) Workers' Compensation Insurance as required by the State of California and Employer's Liability Insurance. 10.3 Minimum Limits. Vendor shall maintain insurance with minimum limits NO LESS THAN the following: (a) General Liability of Two Million Dollars ($2,000,000)for each occurrence and in the aggregate, combined single limit, against any bodily injury, death, personal injury, or property damage. In Comprehensive General Liability Insurance or other form in which a general aggregate limit is used, the general limit shall apply separately to this Agreement or the general limit shall be TWICE the required occurrence limit. - 6- (b) Automobile Liability of One Million Dollars ($1,000,000) per accident for bodily injury and property damage. (c) Garage Keepers Legal Liability coverage with minimum limits of Two Hundred Fifty Thousand Dollars ($250,000) per occurrence. (d) Employer's Liability of One Million Dollars ($1,000,000) per accident for bodily injury or disease. (e) Worker's Compensation and Employer's Liability Insurance in an amount required by law. 10.4 Deductibles. Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, Franchisee shall either: (a) Reduce or eliminate such deductibles or self-insured retentions with respect to the City, its elected and appointed officials, officers, employees, agents, representatives, attorneys, and volunteers; OR (b) Procure a bond, guaranteeing payment of losses and related investigations, claim administration and defense expenses. Under this option, Franchisee shall file such bond within five (5) days after the adoption of the ordinance approving this Agreement. Franchisee shall maintain the bond in full force and effect throughout the term of the Franchise, at Franchisee's sole expense. The bond shall be issued by an admitted surety insurer and comply with the requirements of the Bond and Undertaking Law, codified in Code of Civil Procedure Sections 995.010 et seq. This franchise shall be considered a "license or permit"within the meaning of the Bond and Undertaking Law, solely for purposes of application of such law to the bonding requirements of this section. 10.5 Required Endorsements. All of the policies required by this Agreement shall contain, or be endorsed to contain, the following provisions: (a) City, its elected and appointed officials, officers, employees, agents, representatives, attorneys and volunteers shall be named as additional insured parties, and the policies shall specifically state that the coverage contained in the policies affords insurance pursuant to the terms and conditions as set forth in this Agreement. (b) The insurance coverage provided by the Franchisee shall be primary to any coverage available to the City. Any insurance or self-insurance maintained by City, its officers, officials, employees or volunteers shall be in excess of Franchisee's own insurance and shall not contribute with it. (c) The insurance policies shall contain no special limitations on the scope of protection afforded to the City, its elected and appointed officials, officers, employees, agents, representatives, attorneys or volunteers. Further, the policies shall expressly waive the right of subrogation against City, its elected and appointed officials, officers, employees, agents, representatives, attorneys or volunteers. - 7 - (d) Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to the City, its elected and appointed officials, officers, employees, agents, representatives, attorneys or volunteers. (e) The insurance coverage shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. (f) Each insurance policy required by this section shall be endorsed to state that coverage SHALL NOT be suspended, voided, and/or canceled by either party, and that there shall be no reduction in the amount of coverage or in the limits applicable thereto EXCEPT after thirty(30) days prior written notice has been given to the City, said written notice to be delivered by U.S. Certified Mail, Return Receipt Requested addressed to the City Attorney and City Finance Director. (g) In its sole discretion, the City may waive all or some portion of the above referenced insurance if such waiver is in writing and executed by City's Finance Director. 10.6 Required Insurance Rating. Any insurance policy required by this Agreement shall be placed with an insurer admitted in the State of California with a current A.M. Best's rating of NO LESS THAN B+:VII in the latest edition of Best's Insurance Guide. 10.7 Original Certificates Required. At all times during the term of this Agreement, Franchisee shall maintain on file with the City's Finance Director a certificate or certificates of insurance. Said certificate or certificates of insurance shall show that the aforesaid policies are in effect in the required amounts and shall contain each of the endorsements as set forth in Section 10.3. Franchisee shall, prior to commencement of work under this Agreement, file with the City Finance Director the original certificates effecting coverage required by this section of this Agreement. The endorsements are to be signed by the person authorized by that insurer to bind coverage on its behalf. The endorsements are to be received and approved by City before Franchisee commences operation under the terms of this Agreement 10.8 Failure to Maintain Required Insurance. Franchisee agrees that if it fails to keep the aforesaid insurance policies in full force and effect the City may, at its sole option, either (i) immediately terminate this Agreement or, (ii) if insurance is available at a reasonable cost, the City may take out the necessary insurance and pay, at Franchisee's cost and expense, the premium thereon. Section 11. TERMINATION AND SUSPENSION. The City may terminate this Agreement, without cause, by giving the Franchisee thirty (30) days' written notice of such termination and the effective date thereof. The City may terminate this Agreement, with cause, by giving the Franchisee (10) days' written notice of such termination and the effective date thereof. Cancellation for cause shall be at the discretion of the City and shall be, but is not limited to, failure to supply the materials, equipment or service specified within the time allowed or within the terms, conditions or provisions of this Agreement. The Franchisee may not cancel this Agreement without prior written consent from the Vernon Chief of Police. - 8 - Section 12. TEMPORARY SUSPENSION. In addition to termination or suspension as set forth in Section 11, above, the Chief of Police may temporarily suspend any Franchisee without a hearing, whenever the continued operation by the Franchisee would constitute a danger to public health, safety, welfare or public morals, including, without limitation, where there is a failure to maintain the minimum levels and standards of liability insurance or claims reserve or failure to keep in full force and effect any applicable licenses or permits required by federal, state, local law, or regulation. The notice of temporary suspension may be personally delivered to the party named and to the address given on the application pursuant to which such Franchise was issued and to the notice address stated herein, if different, or, mailed by registered or certified mail to the party named at the address given on the application pursuant to which such Franchise was issued and to the notice address stated herein, if different. Notwithstanding other notice provisions of this Agreement, the temporary suspension is effective upon the earlier of either receipt or the expiration of three (3) days from the date of mailing. The notice of temporary suspension shall include a notice of the date and time for termination hearing and all other information required by the Vernon Municipal Code. The temporary suspension shall remain effective until the decision on suspension or termination is made unless the suspension is lifted by written notice of the Chief of Police. Section 13. ACCEPTANCE, WAIVER. Franchisee agrees to be bound by and comply with all the requirements of Chapter 4B and this Agreement. By entering into this Agreement, Franchisee waives, to the maximum extent permitted by law, Franchisee's right to challenge the terms of this Agreement and of Chapter 4B under federal, state or local law, or under administrative regulation, as such laws and regulations exist as of the date of signing of this Agreement. Section 14. GENERAL TERMS AND CONDITIONS. 14.1 INDEPENDENT STATUS. It is understood that in the performance under this Agreement, Franchisee shall be, and is, an independent operator, and is not an agent, contractor, or employee of City and shall furnish services in its own manner and method, except as required by this Agreement. Further, Franchisee has and shall retain the right to exercise full control over the employment, direction, compensation and discharge of all persons employed by Franchisee in its business operations. Franchisee shall be solely responsible for, and shall indemnify, defend and save City harmless from all matters relating to the payment of its employees, including compliance with social security, withholding and all other wages, salaries, benefits, taxes, exactions, and regulations of any nature whatsoever. Franchisee acknowledges that Franchisee and any subcontractors, agents or employees are not 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. 14.2 FRANCHISEE NOT AGENT. Franchisee and its subcontractors shall have no authority, express or implied,to act on behalf of or bind the City in any capacity whatsoever as agents or otherwise. 14.3 WAIVER. The City's waiver of any term, condition, breach or default of this Agreement shall not be considered to be a waiver of any other term, condition, default or breach, nor of a subsequent breach of the one waived. - 9 - 14.4 NO ASSIGNMENT. The Franchisee shall not assign or transfer any interest in this Agreement without the express prior written consent and approval of City Council. Any unauthorized assignment or transfer of Franchisee's rights or obligations under this Agreement shall be null and void and shall constitute a material breach by Franchisee of this Agreement. 14.5 COMPLIANCE WITH LAWS. Franchisee shall comply with all Federal, State, County and City laws, ordinances, resolutions, rules and regulations, which are, as amended from time to time, incorporated herein and applicable to the performance hereof. 14.6 ATTORNEY'S FEES. If any action at law or in equity is brought to enforce or interpret the terms of this Agreement,the prevailing party shall be entitled to reasonable attorney's fees, costs and necessary disbursements in addition to any other relief to which such party may be entitled. 14.7 INTERPRETATION. 14.7.1 Armlicable Law. This Agreement, and the rights and duties of the parties hereunder(both procedural and substantive), shall be governed and construed according to the laws of the State of California,without regard to the conflict of laws provisions therein. 14.7.2 Entire Agreement. This Agreement, including any Exhibits attached hereto and any documents explicitly referenced herein, constitutes the entire agreement and understanding between the parties regarding its subject matter and supersedes all prior or contemporaneous negotiations, representations, understandings, correspondence, documentation and agreements (written or oral). 14.7.3 Written Amendment. This Agreement may only be changed by written amendment signed by Franchisee and the City Administrator or other authorized representative of the City, subject to any requisite authorization by the City Council. Any oral representations or modifications concerning this Agreement shall be of no force or effect. 14.7.4 Severability. If any provision in this Agreement is held by any court of competent jurisdiction to be invalid, illegal, void, or unenforceable, such portion shall be deemed severed from this Agreement, and the remaining provisions shall nevertheless continue in full force and effect as fully as though such invalid, illegal, or unenforceable portion had never been part of this Agreement. 14.7.5 Choice of Forum. The parties hereby agree that this Agreement is entered into and is to be performed in the City of Vernon and that all claims or controversies arising out of or related to performance under this Agreement shall be submitted to and resolved in a forum within the County of Los Angeles at a place to be determined by the rules of the forum. 14.7.6 Order of Precedence. In case of conflict between the terms of this Agreement and the terms contained in any document attached as an Exhibit or otherwise incorporated by reference, the order of precedence is as follows: Charter of the City of Vernon, the Vernon Municipal Code, the ordinance granting this Franchise, resolutions of the City of Vernon, this Agreement, the City's Request for Proposals for Official Police Towing Services, - 10 - and Franchisee's Response to the City's Request for Proposals for Official Police Towing Services. 14.7.7 Duplicate Originals. There shall be two (2) fully signed copies of this Agreement, each of which shall be deemed an original. 14.8 AUTHORITY OF FRANCHISEE. The Franchisee hereby represents and warrants to the City that the Franchisee has the fight, power, legal capacity and authority to enter into and perform its obligations under this Agreement, and its execution of this Agreement has been duly authorized. 14.9 EMINENT DOMAIN. The granting of the Franchise shall not in any way impair or affect the right of the City to acquire the property of the Franchisee by purchase or condemnation, and nothing contained in this Franchise shall be construed to contract away, modify or abridge either for a term or in perpetuity the City's right of eminent domain. 14.10 VALUE OF FRANCHISE. By acceptance of the Franchise, the Franchisee, for itself, its successors and assigns, agrees that in any proceeding of any character before any court, commission, administrative body, board of arbitration or other public authority, no greater value shall be placed upon the franchise in excess of the cost to the Franchisee of the necessary publication and any other sum paid by Franchisee to the City therefor at the time of acquisition. Section 15. ADDITIONAL ASSURANCES. 15.1 EQUAL EMPLOYMENT OPPORTUNITY PRACTICES. Franchisee certifies and represents that, during the performance of this Agreement, Franchisee and any other parties with whom it may subcontract shall adhere to equal opportunity employment practices to assure that applicants and employees are treated equally and are not discriminated against because of their race, religion, color, national origin, ancestry, disability, sex, age, medical condition, marital status. Franchisee further certifies that it will not maintain any segregated facilities. Franchisee further agrees to comply with The Equal Employment Opportunity Practices provisions as set forth in Exhibit "C". 15.2 BUSINESS LICENSES. Franchisee shall obtain, and pay any and all costs associated therewith, any Vernon Business License, which may be required by the Vernon Municipal Code and all permits, and licenses applicable to Franchisee's operations under this Franchise, which are required of Franchisee by any governmental agency. 15.3 MAINTENANCE AND INSPECTION OF RECORDS. The City, or its authorized auditors or representatives, shall have access to and the right to audit and reproduce any of the Franchisee's records to the extent the City deems necessary to insure it is receiving all money to which it is entitled under the Agreement and/or is paying only the amounts to which Franchisee is properly entitled under the Agreement or for other purposes relating to the Agreement. The Franchisee shall maintain and preserve all such records for a period of at least 3 years after termination of the Agreement. The Franchisee shall maintain all such records in the City of Vernon. If not, the Franchisee shall, upon request, promptly deliver the - 11 - 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 personal, salaries, private auditors, travel, lodging, meals and overhead. 15.4 CONFLICT. Franchisee hereby represents, warrants and certifies that no member, officer or employee of the Franchisee is a director, officer or employee of the City of Vernon, or a member of any of its boards, commissions or committees, except to the extent permitted by law. Section 16. LIVING WAGES. Franchisee, and any subcontractor(s), shall comply with the City's Living Wage Ordinance. The current Living Wage Standards are set forth in Exhibit "D". Upon the City's request, certified payroll records shall promptly be provided to the City. Section 17. NOTICES. Except as otherwise provided in this Agreement, all notices required by this Agreement or by Chapter 4B of the Vernon Municipal Code shall be given by personal service or by deposit in the United States mail, postage pre-paid and return receipt requested, addressed to the parties as follows: To City: Vernon Police Department Attention: Police Chief 4305 Santa Fe Avenue Vernon, CA 90058 Copies to. City of Vernon Attention: Finance Director 4305 Santa Fe Avenue Vernon, CA 90058 Franchisee: Mr. C's Towing of South Gate, Inc. Attention: Jerry Brown, General Manager 4421 Mason Street South Gate, CA 90280 Notice shall be deemed effective on the date personally served or, if mailed, three days after the date deposited in the mail. [Signatures Begin on Next Page]. - 12 - IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by their duly authorized representatives as of the date set forth below. City of Vernon, a California charter City Mr. C's Towing of South Gate, Inc., a and California municipal corporation California corporation DATED: DATED: By: By: W. Michael McCormick, Mayor Name: Title: ATTEST: By: _M Name: Maria E. Ayala, City Clerk Title: APPROVED AS TO FORM: Brian Byun, Deputy City Attorney - 13 - EXHIBIT A EXHIBIT A REQUEST FOR PROPOSALS - 14 - City of Vernon Request for Proposals (RFP) t Franchise Tow Fee Program IFOXjV �L City of Vernon Police Department 4305 Santa Fe Avenue, Vernon, CA 90058 Phone: (323) 587-5171 City of Vernon Franchise Tow Fee Program Request for Proposals 1. INTRODUCTION AND PR JECT The City of Vemon seeks proposals from qualified bidders to enter into a franchise agreement to perform rotational police towing and storage services. Services to be performed by the selected contractor include vehicle towing and impound services as directed by the Vernon Police Department. Based on the quality of the proposals received, the City may consider awarding a single tow franchise contract, or multiple tow franchise contracts using a call-for-service rotation. The City does not expect to aware more than two (2)franchise agreements under the rotational system, although City Council reserves the right to award contracts at its sole discretion, based on the proposals submitted, The City will select no more than two (2)tow service companies, based on demonstrated competence and a cost effective approach to design, conduct, and assist in the removal of vehicles which are apparently abandoned, or driven by unlicensed drivers, or drivers driving on suspended licenses, or involved in traffic collisions, or vehicles creating a traffic hazard due to mechanical failures. To be eligible for consideration, the tow service company's place of business and vehicle storage facility must be located within a seven (7) mile radius of the Vernon City Hall, located at 4305 Santa Fe Avenue, Vemon CA 90058. 2. BACKGROUND The City of Vemon was founded in 1905, is approximately 5.2 square miles in size and is located approximately 5 miles southeast of downtown Los Angeles California. Over its long history Vemon has been developed as an industrial community. At the tum of the 20'h century the lands that make up Vemon were comprised largely of farmlands. The presence of three major rail lines in the area led influential business and property owners to encourage the railroad companies to run spur lines onto the farmlands. These rail extensions enabled the creation of an "exclusively industrial' city. By the 192D's Vemon was attracting large stockyards and meatpacking facilities. In the 1930's Vemon became the location of choice for many heavy industrial plants. As economic conditions changed over the decades, these large scale industrial operations have relocated out of Southern Califomia and Vemon has attracted smaller, lighter industrial facilities. The City's business friendly environment, low cost utilities and key location for trucking and rail transport continue to position Vernon as an ideal location for industrial uses. City Govemment: The City Council consists of five members, elected at-large, who serve five-year staggered terms. The City Council annually appoints a Mayor and a Mayor Pro Tem from its own membership to serve one-year terms. - 2, City of Vernon Franchise Tow Fee Program Request for Proposals Labor Force: Vernon has approximately 250 employees, and its departments include a Fire Department, Police Department, Finance Department, Public Works, Water and Development Services Department, Gas and Electric Department and Health and Environmental Control Department. Present bargaining units recognized include the IL Vernon Police Officers Benefit Association, Vernon Police Management Association, Vernon Firemen's Association, the Vemon Fire Management Association, International Brotherhood of Electrical Workers Local 47, and Teamsters Locai 911. 3. ISSUES OR PROBLEMS TO BE ADDRESSED The selected tow service company shall be able to provide swift, professional service in the removal of any vehicle, as directed by the Vernon Police Department, from any City street. 4. SCOPE OF SERVICES REQUIRED The City of Vernon is seeking the services of a highly qualified low service company to l assist in: i, Under the terms specified herein as well as in Chapter 48 of the Vernon Municipal Code, 1 Franchisee shall furnish impound, towing, and storage services to the Vernon Police Department and the City as directed by the Vernon Police Department. To be eligible for ! a franchise, applicants must meet the City's minimum requirements as specified herein. Franchisee will be required to provide the necessary trained personnel, tow trucks and storage facilities to recover, if necessary, and remove vehicles and tractor/trailers involved in collisions. Franchisee(s)must be able to tow and store vehicles impounded by the police, many times in excess of 30 days; and must be able to clean up and dispose of debris at the scene of an accident at which any vehicle to be towed hereunder was involved. The average response time for any thirty day period pursuant to requests for tow service by the Police Department, must not exceed twenty (20) minutes. The maximum response time for any single request for tow service by the Police Department shall not exceed thirty(30)minutes. In the event the Franchisee cannot respond within 20 minutes, the Franchisee shall immediately notify the Police Department dispatcher and provide an estimated time of arrival. Franchisee must provide a dispatcher available onsite at the tow facility place of business at all times for the immediate dispatching of towing equipment. Franchisee's place of business must be open from 0700 to 1800 hours Monday through Friday. Alternate hours, as directed by the City, must also be available in order to accommodate special City events. Failure or refusal to promptly relay the Police Dispatcher's requests for towing services shall constitute failure to comply with the requirements, terms and conditions of the agreement and may result in termination of the agreement. All tow trucks shall be equipped as provided in the California Vehicle Code. -3- City of Vernon Franchise Tow flee Program Request for Proposals Franchisee's trucks shall be painted,free of major dents, and kept clean and in good working order. Official police tow services shall, at all times, have at least three fully equipped and operational tow trucks in service. All of the tow trucks in service must have a minimum capacity of one(1)ton. Al least one of the tow trucks in service must be a flatbed tow truck. At least one of the three tow trucks In service must have a five ton (5) lifting capacity. Every official police tow service shall be equipped for and have personnel proficient in unlocking locked vehicles when requested to do so by Police Department employees. Upon selection the Franchisee shall file with the Vernon Police Department, the name, address, date of birth, driver's license number, and all other information required of any tow unit driver employed by the permit holder subsequent to the date of the tow operator permit apprication, which information shall be filed not later than ten (10) business days following the effective date of hiring. The Franchisee will be required to notify the Vernon Police Department of the name of any tow truck driver no longer employed by such permit holder. This notification shall be given to the Vernon Police Department no later than ten (10)business days following the last date of the driver's employment by the permit holder. The Franchisee will be required to notify the Vernon Police Department of the identity of any tow truck driver whose license is suspended. The operator shall not be authorized to operate in Vemon unless the operator has provided proof from the Department of Motor Vehicles of the ability to operate a vehicle during work hours. The Franchisee will be required to enroll and participating in a program with California Department of Motor Vehicles (DMV Pull Program)that notifies the Franchisee when their drivers have any change to their driving status or record. This DMV program will alert the Franchisee to any potential problem drivers. Franchisee will be required to comply with the California Vehicle Code and other applicable laws with regards to lien sales, including supplying a list of vehicles each month that the Franchisee intends to lien sale prior to selling same for approval by the department. Franchisee is responsible for maintaining all documents relating to lien sales_ 5. QUAL.IFICATIONS&CRITERIA A. Qualifications: The City of Vemon will select no more than two (2) tow service companies for all of the outlined Scope of Service on the basis of qualifications, experience, and cost. The following are the minimum qualifications to be used to evaluate responses to this Request for Proposal: 1. The applicants can satisfy the insurance, business license, and tow operator permits requirements set forth in Vernon Municipal Code Chapter 4B. 2. The applicants are qualified on the basis of prior experience in the towing - 4- i City of Vernon Franchise Tow Fee Program Request for Proposals I i operation business and financial responsibility. 3. All tow vehicles and equipment must comply with all state and 1 applicable federal requirements. 4. The applicants can reasonably conduct an official police towing service which complies with all of the requirements of Vernon Municipal Code Chapter 4B. 5 The applicants will accept all tow requested by the City, including tows of abandoned or dismantled vehicles and/or tows requiring special equipment- B. Selection Criteria:The City will conduct a comprehensive, fair, and impartial evaluation of proposals received in response to this RFP. All proposals received will be reviewed and evaluated by a committee of qualified personnel. The name, information, or experience of the individual members will not be made available to any proposer. The Evaluation Committee will first review and screen all proposals submitted, except for the cost proposals, according to the minimum qualifications set forth above. The following criteria will be used in reviewing and comparing the proposals and in determining the highest scoring bid: 1. 40% Qualifications, background and prior experience of the tow service company in the Service Area(s) being proposed, experience of key staff assigned to oversee services provided to Vernon,evaluation of size end scope of similar work performed and success on that work. 2. 30% Cost and fees to the City for handling matters. Cost is not the sole determining factor but will be taken into consideration. Proposer must offer services at a rate comparable to the rate proposer offers to other governmental entities for similar work. Offering a higher rate to the City than the comparable rate is grounds for disqualification of the Proposer. If rates differ for different types or levels of service, or for different Service Areas, the Proposer should so state. 3. 10% Responsiveness to the RFP, and quality and responsiveness of the proposal. 4. 20% References including past performance of proposer. B. FORMAT AND DELIVERY OF RESPONSE Respondents are asked to submit seven (7) hard copies and one (1) electronic copy of their proposals in sufficient detail to allow for a thorough evaluation and comparative analysis. The proposal should include, at a minimum, the following information in sectionalized format addressing all phases of the work in the RFP. A. Format: Limit your proposal to 20 typed 8.5" X 11" pages, or fewer, on white bond paper of at least 20-pound weight single sided (excluding cover letter and attachments. You may attach a company brochure if you wish, but it must be as a separate attachment and independent from the required elements noted above. 1. Use a conventional typeface with a minimum font size of 12 points. Use a 1" margin on all boarders. -5- City of Vernon Franchise Tow Fee Program Request for Proposals 2. Organize your submittal in the order described above. 3. Provide one (1) unbound original of your company's response and one electronic version (via email) to Captain Michael Gillman, mgillman@covpd-org 4. Prominently label the package: 'Franchise Tow Fee Program'and include the name of the primary contact for the respondent. Deliver the response to: City of Vemon Attention: Captain Michael Gillman 4305 Santa Fe Avenue Vernon, CA 90058 5. Responses are due on or before 5:00 p.m. on Will 16, 2015. Late response will not be accepted. 6. If you have any question about this RFP, please contact Captain Michael Gillman at(323)587-5171 ext. 115. B. Cover Letter. All proposals shall include a cover letter which states that the proposal shall remain valid for a period of not less than ninety (90) days from the date of submittal. If the proposal contemplates the use of subcontractors, the sub- contractors shall be identified in the cover letter. If the proposal is submitted by a business entity, the cover letter shall be signed by an officer authorized to contractually bind the business entity. With respect to the business entity, the cover letter shall also Include: the identification of the business entity, including the name, address and telephone number of the business entity; and the name, title, address and telephone number of a contact person during the proposal evaluation period. C. Introduction: Present an introduction of the proposal and your understanding of the assignment and significant steps, methods and procedures to be employed by the proposer to ensure quality deliverables that can be delivered within the required time frames and your identified budget. D. General Scopeof Work: Briefly summarize the scope of work as the proposer Y perceives or envisions it for each Service Area proposed. F. Work Plan: Present concepts for conducting the work plan and interrelationship of all projects. Define the scope of each task including the depth and scope of analysis or research proposed. F. Fees and costs: Although an important aspect of consideration, the financial cost estimate will not be the sole justification for consideration. Negotiations may or may not be conducted with the proposer; therefore, the proposal submitted should contain the proposer's most favorable terns and condltions, since selection and award may be made without discussion with any tow service company. All prices - 6- City of Vernon Franchise Tow Fee Program Request for Proposals should reflect "not to exceed" amounts per item. Proposer must offer services at a rate comparable to the rate proposer offers to other governmental entities for similar work. Offering a higher rate to the City than the comparable rate is grounds for disqualification of the Proposer. G. Ability of the Proposer to Perform: Provide a detailed description of the proposer and hislhertts qualifications, including names, titles, detailed professional resumes and past experience in similar work efforts/products of key personnel who will be working on the assignment. Provide a list of specific related work projects that have been completed by the proposer which are directly related to the assignment described in this RFP. Note the specific individuals who completed such projec4s). Identify role and responsibility of each member of the project team. Include the amount of time key personnel will be involved in the respective portions of the assignment. Respondents are encouraged to supply relevant examples of their professional product. Provide a fist of references. The selected tow service companies shall not subcontract any work under the RFP nor assign any work without the prior written consent of the City. H. Affidavit of Non-Collusion. Proposer must submit a completed and signed, "Affidavit of Nan-Collusion.' (Copy attached as Exhibit A). 7. ADDENDA, CHANGES,AND AMENDMENTS TO THIS SOLICITATION At any time prior to the due date for responses, the City may make changes, amendments, and addenda to this solicitation, including changing the date due to allow respondents time to address such changes. Addenda, changes, and amendments, if made, will be posted on the City's website (www_cityofvemon.org), which is deemed ' adequate notice. A proposer may make a request to the City's project coordinator to be placed on a list of persons to receive notice of any such addenda, changes, or amendments. The preferred manner of communications Is via a-mall due to its timeliness. 8. CONDITIONS FOR RESPONSES TO RFP The following conditions apply to this RFP process: A Nothing contained in this RFP shall create any contractual relationship between the respondent and the City. B. This RFP does not obligate the City to establish a list of service providers qualified as prime contractors, or award a contract to any respondent. The City reserves the right to amend or cancel this RFP without prior notice, at any time, at its sole discretion, C. The City shall not be liable for any expenses incurred by any individual or organization in connection with this RFP. D. No conversations or agreements with any officer, agent, or -7- City of Vernon Franchise Tow Fee Program Request for Proposals employee of the City shall affect or modify any terms of this RFP. 1 Oral communications or any written/e-mail materials provided by any person other than designated contact staff of City shall not be considered binding. E. The City reserves the right, in its sole discretion, to accept or reject any or all Proposals without prior notice and to waive any minor irregularities or deflects in a Proposal. The City reserves the right to seek clarification on a Proposal with any source. F. The dates, times, and sequence of events related to Ihis RFP shall ultimately be determined by the City. The schedule shown above is subject to change, at the sole discretion of the City, although the City will attempt to follow it and, if it must be altered, will attempt to provide reasonable notice of the changes- G. Respondents shall not issue any news release pertaining to this RFP, or the City without prior written approval of the City. H. All submitted proposals and information included therein or attached thereto shall become public record upon delivery to the City Administrator's Office. g. RIGHT BY THE CITY TO WITHDRAW THIS-REQUES The City may, at its sole discretion and for any reason whatsoever, withdraw this solicitation at any time. 10. UMNG WAGE ORDINANCE The selected tow service companies shall pay qualifying employees a wage of not less than $10.30 per hour with health benefits, or$11.55 per hour without health benefits- The tow service companies shall also provide qualifying employees at least twelve days off per year for sick leave, vacation or personnel necessity, and an additional ten days a year of uncompensated time for sick leave. There shall be a prohibition on employer retaliation against an employee's complaining to the City with regard to the employer's compliance with the living wage ordinance. The tow services companies,and any sub- eontractor(s), shall comply with the City's Living Wage Ordinance. The current Living Wage Standards are set forth in Exhibit"D'of the standard farm franchise towing services contract, attached hereto as Exhibit B. Upon the City's request, certified payroll records shall promptly be provided to the City. -8- City of Vernon Franchise Tow Fee Program Request for Proposals 11. STANDARD TERMS AND CONDITIONS Prior to the award of any work hereunder, City and proposer shall enter into the written contract for services attached hereto as Exhibit B. Proposers responding to this RFP are strongly advised to review all the terms and conditions of the Contract The term of the Contract shall not exceed three (3)years. -9- City of Vernon Francbise Tow Fee Program Request for Proposals EXHIBIT A AFFIDAVIT OF NON-COLLUSION -10- AFFIDAVIT OF NON-COLLUSION BY CONTRACTOR STATE OF CALIFORNIA ) ss COUNTY OF LOS ANGELES ) being first duly sworn deposes and says that he/she is {hoer'Salt Owner,Wmer'.'P=i&TL'&x"ry',or odor proper silk} of (lawn nun of bW&i) who submits herewith to the City of Vernon a bid/proposal; That all statements of fact in such bid/proposal are true; That such bid/proposal was not made in the interest of or on behalf of any undisclosed person, partnership,company,association,organization or corporation; That such bid/proposal is genuine and not collusive or sham; That said bidder has not,direcdy or indirectly by agreement,communication or conference with anyone attempted to induce action prejudicial to the interest of the City of Vernon, or of any other bidder or anyone else interested in the proposed contract•,and further That prior to the public opening and reading of bids/proposals,said bidder a. Did not directly or indirectly, induce or solicit anyone else to submit a false or sham bid/proposal; b. Did not directly or indirectly, collude, conspire, connive or agree with anyone else that said bidder or anyone else would submit a false or sham bid/proposal,or that anyone should refrain from bidding or withdraw his/her b id/proposa 1; C. Did not, in any manner,directly or indirectly seek by agreement,communication or conference with anyone to raise or fix the bid/proposal price of said bidder or of anyone else, or to raise or fix any overhead,profit or cost element of his/her bid/proposal puce,or of that of anyone else; d, Did not, directly or indirectly, submit his/her bidlxvposal price or any breakdown thereof,or the contents thereof, or divulge information or data relative thereto, to any corporation, Prtnership, car:rpany, association, orpnization, bid depository, or to any member or agent thereof,or to any individual or group of individLaIs.except the City of Vernon,or to any person or persons who have a partnership or other financial interest with said bidder in his/her business. I certify tinder penalty of perjury that the above information is correct By: Title: Date: Marrh 2013 City of Vemon Franchise Tow Fee Program Request for Proposals EXHIBIT B STANDARD FORM CONTRACT -11 - CITY OF VERNON FRANCHISEE TOWING SERVICES AGREEMENT NO. COVER PAGE Franchisee: [insert name of franchisee] Responsible Principal of Franchisee: [insert name, title] Notice Information - Franchisee: [insert name of franchisee] [insert street address] [insert city, state, zip code] Attention: [insert name, title] Phone: [insert phone number] Facsimile: [insert fax number] Notice Information - City. City of Vernon 4305 Santa Fe Avenue Vernon, CA D0058 Attention: [insert department head] [insert department head title] Telephone: (323)583-8811 ext. [insert] Facsimile: [insert fax number] Commencement Date: [insert commencement date] Termination Date: [insert termination date] Consideration: Payment is made by Franchisee to City pursuant to Section 3 of this Agreement. Payment is made to Franchisee by City pursuant to Section 5 of this Agreement. Records Retention Period [insert number of years contractor must retain records] March 2015 CITY OF VERNON FRANCHISEE TOWING SERVICES AGREEMENT NO. This Agreement is made and entered into by and between the City of Vernon("CiV), a California charter City and California municipal corporation, and ("Franchisee'), a Police Towing Company with its principal place of business at (collectively, the "Parties")to provide for towing services to the city. The Parties agree as follows., RECITALS WHEREAS, Franchisee shall provide police towing services to the City of Vemon as set forth in the Request for Proposal dated Exhibit A, and Franchisee's proposal to the Ci "Pro sal' dated Exhibit B both of which are attached to and incormated Into this Agreement. by reference. WHEREAS, pursuant to Chapter 48 of the Vernon Municipal Code, Franchisee has applied for a Police Towing Franchise("Franchise'); and WHEREAS, the City Council has hold a public hearing for the purpose of hearing persons in favor of or in opposition to the granting of such Franchise; and WHEREAS, the City Council has determined that Franchisee has demonstrated compliance with Chapter 4B of the Vernon Municipal Code and has agreed to comply with all provisions of that Chapter; and WHEREAS, it is required that City and Franchisee enter into a Franchise Towing Services Agreement('Agreement')for Police Towing services in the City of Vemon; and WHEREAS, additional conditions have been imposed upon this grant of Franchise. NOW,THEREFORE, the Parties do hereby agree as follows: Section 1. GRANT OF FRANCHISE. City grants to Franchisee a Police Towing Franchise authorizing Franchisee to engage in the business of Police Towing as set forth in chapter 4B of the Vernon Municipal Code in the City of Vemon and to use the public streets and rights of way for such purpose. This grant is pursuant to the City's Request for Proposal and to Franchisee's proposal for the Franchise. Franchisee is subject to the terms and conditions specified in Section 8.9 of the Charter of the City of Vernon, the provisions of Chapter 4B of the Vernon Municipal Code, the terms and conditions specified in all related resolutions, the germs and conditions of this Agreement, the representations and assurances in Franchisee's application for the Francthise. Section 2. TERM OF FRANCHISE The term of this Franchise granted to Franchisee shall be for three(3)years, from to inclusive. March 2015 Section 3. FRANCHISE FEES. 3.1 During the term of the Franchise, Franchisee shall pay franchise fees to City, which fees shall be assessed from the date on which the ordinance granting this Franchise became effective and in accordance with Section 413.8 of the Vernon Municipal Code and any Resolution adopted by the City Council and in such other amounts as are set forth in any subsequent resolutions that may be adopted by the City Council at any time during the term of the Agreement. 3.2 Franchise shall timely pay all required franchise fees to: Finance Department—Director of Finance City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 Each payment shall be accompanied by a written statement, verified by the Franchisee or a duty authorized representative of the Franchise, showing in such form and detail as the Director of the Department of Finance may prescribe, the calculation of the franchise fee payable by the Franchisee and such other information as the Director of the Department of Finance may require as material to a determination of the amount due. 3.3 The first payment of the franchise fee will be due on and payments shall be due monthly thereafter on the 15' day of each month. 3.4 When Franchisee remits franchise fees the City, such franchise fees shall be deemed timely paid only if delivered or postmarked on or before the due date. If fees are not timely paid, Franchisee shall be subject to suspension or termination of the Franchise pursuant to Section 14 of this Agreement and/or to any other penalties which may be established and assessed by the City, including, but without limitation, late fees assessed at the rate of five percent(5%). Section 4. TOWING SERVICES. 4.1 Franchisee shall provide Police Towing services, as set forth in Exhibit A. which is the City's Request for Proposals for Official Police Tow Services, and which includes, but without limitation, strictly adhering to the eligibility requirements, operating regulations, fees schedules, standards for tow truck equipment, standard rules of operation, response time, inspection, information regarding new or terminated tow truck drivers, tow driver training, and as set forth in Exhibit B which is Franchisee's response to the City's Request for Proposals. All services by Franchisee shall comply will all provisions of federal, state and local law and regulation, including, but without limitation Chapter 4B of the Vernon Municipal Code. 4.2 Franchisee understands and agrees that, although the City is granting it a franchise as a police towing service, the City may requisition towing services from other service providers as set forth in Section 413.12 of the Vernon Municipal Code, or if Franchisee is otherwise unavailable for any reason, in the reasonable discretion of the Vernon Chief of Police and including, but without limitation, suspension or termination of the Franchisee. March 2015 Section 5. RATES. CHARGES AND PAYMENT. 5.1 The rates and charges for towing and storage in connection with this Franchise shall be established by the City Council. The prevailing rates prescribed by the Southern Division of the California Highway Patrol, the Los Angeles Police Department, and the Los Angeles County Sheriff will be considered when establishing these rates. The rate per impound shelf be $ and the storage charge shall be $ per day, until otherwise modified by the City Council. A sign showing the approved rates and charges shall be conspicuously posted in the Franchisee's tow office and shall be posted in a conspicuous place in the interior of each tow truck operated by Franchisee. Franchisee shall provide vehicle owners the option of payment by MasterCard and Visa. Franchisee must provide for after-hours releases of vehicles, and may collect an after-hour release fee. As part of the award of franchise the City Council will be requested to establish an after-hours release fee not to exceed '/2 of the impound fee in addition to other established fees. Section 6. REPORTS. Franchisee shall file a monthly towing report with the Chief of Police along with payment of its monthly franchise fees. The report shall be submitted to: Chief of Police Vernon Police Department 4305 Santa Fe Avenue Vernon, CA 90058 The report shall include the information required by Section 4B.10(H)of the Vernon Municipal Code for Franchisee and its subcontractors, certified as true and correct under penalty of perjury by a responsible owner or official of the Franchisee: Section 7. FRANCHISEE'S RECORDS- 7.1 The Franchisee shall maintain accurate and complete books and accounts of all revenues and income arising out of its operations under the Franchise and in a manner, which conforms with generally accepted accounting principles. Franchisee's books. accounts and records, arising out of or related to its operation under the Franchise, shall at all times be open to inspection, examination and audit by authorized officers, employees and agents of the City. Such records shall be kept at franchisee's place of business shown in this Agreement for receipt of notices. 7.2 Franchisee shall require its subcontractors, if any, who perform Police Towing services in connection with the Franchise to keep and maintain books of account and other records showing all business transactions conducted by such subcontractors in connection with the Franchise_ Franchisee agrees to use its best efforts to avoid duplication of reporting between Franchisee and its subcontractors. Section 8. JMVEHICLE AND DRIVER, REEORTING, COMPLIANCE, AND IDENTIFICATION. 8.1 Franchisee shall maintain on file with the City, a complete and accurate listing of every vehicle operated by Franchisee for police towing services. Franchisee shall certify, in a form acceptable to City, that every such vehicle conforms with regional and State March 2015 vehicle emission standards ('emission standards'), and shall provide documentation of compliance on written request of the City. Franchisee understands and agrees that failure to conform with emission standards may result in suspension, termination or non-renewal of a Franchise. 8.2 Every vehicle operated by Franchisee and for Police Towing services in the City shall bear the following identification: Franchisee's trade name, monogram or insignia, the Franchise vehicle number, together with Franchisee's telephone number painted upon both sides of the vehicle. All lettering mentioned in this paragraph shall be not less than 2-1/4' in height and not less than 5/6"stroke. The Franchisee agrees to remove the Franchise vehicle number and all other information within 30 calendar days after the Franchise is terminated or the vehicle is sold, transferred or taken out of service. 8.3 Franchisee shall file with the Vemon Police Department, the name, address,date of birth, driver's license number, and all identification required of any tow unit driver working for Franchisee, whether as an employee or as a contractor, which information shall be filed not later than ten (10)business days following the effective date of employment or engagement Franchisee shall also notify the Vernon Police Department within ten (10) business days of the following occurrences: the license suspension of any tow unit driver, and the end of employment, or engagement, of any tow unit driver with Franchisee. Section 9. INDEMNIFICATION OF CITY. 9.1 Franchisee shall indemnify and hold the City harmless from and against any and all loss, damages, liability, claims, suits, costs and expenses, fines, charges or penalties whatsoever, including reasonable attorneys fees, regardless of the merit or outcome of any such claim or suit, arising from or in any manner related to the services provided or business conducted under Chapter 4B of the Vernon Municipal Code or otherwise pursuant to this Agreement. 9.2 Franchisee shall indemnify the City, defend with counsel approved by the City, protect and hold harmless the City, its officers, employees, agents, assigns, and any successor or successors to the City's interest from and against all claims, actual damages (including but not limited to special and consequential damages), natural resources damage, punitive damages, injuries, costs, response, remediation and removal costs, losses, demands, debts, liens, liabilities, causes of action, suits, legal or administrative proceedings, interest, fines and charges, penalties and expenses(including, but not limited to, attomeys' and expert witness fees and costs incurred in connection with defending against any of the foregoing or in enfordng this indemnity)of any kind whatsoever paid, incurred or suffered by, or asserted against, the City or its officers, employees, agents or the Franchisee arising from or attributable to any repair, remedlalion, cleanup or detoxification, or preparation and implementation of any removal, remedial, response, or closure or other plan (regardless of whether undertaken due to govemmental action)concerning any hazardous substance or hazardous waste at any place where the Franchisee stores or dispose of solid or hazardous waste. The foregoing indemnity is intended to operate as an Agreement pursuant to the Comprehensive Environmental Response, Compensation and Liability Act, 42 United States Code Section 9607, and California Health and Safety Code Section 26364, and any successor provisions, to insure, protect, hold harmless, and indemnify the City from liability. March 2015 Section 10. INSURANCE REQUIREMENTS. 10,1 Franchisee shall, at its sole cost and expense, procure and maintain in full force and effect, throughout the lean of this Agreement, inclusive of any renewal term granted by City, insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the services hereunder by the Franchisee, its agents, representatives, employees or subcontractors. Franchisee shall procure and maintain insurance policies of the types and meeting the requirements set forth below, and shall provide to the City a Certificate of Insurance, or other such evidence reasonably acceptable to the City, verifying the existence of such policies: 10.2 Minimum Score of Insurance Coveraae. Franchisee small procure and maintain policies of insurance with minimum scopes of coverage AT LEAST as broad as the following: (a) Comprehensive General Liability Insurance. (b) Comprehensive Vehicle Liability Insurance. (c) Workers'Compensation Insurance as required by the State of Califonnia and Employer's Liability Insurance. 10.3 Minimum Limits. Vendor shall maintain insurance with minimum limits NO LESS THAN the following, (a) General Liability of Two Million Dollars($2,000,000)for each occurrence and in the aggregate, combined single limit, against any bodily injury, death, personal injury, or property damage. In Comprehensive General Liability Insurance or other form in which a general aggregate limit is used, the general limit shall apply separately to this Agreement or the general limit shall be TWICE the required occurrence limit. (b) Automobile Liability of One Million Dollars($1,000,000) per accident for bodily injury and property damage. (c) Garage Keepers Legal Liability coverage with minimum limits of Two Hundred Fifty Thousand Dollars($250,000) per occurrence. (d) Employer's Liability of One Million Dollars($1,000,000)per accident for bodily injury or disease. (e) Worker's Compensation and Employer's Liability Insurance in an amount required by law. 10.4 Deduc ibies, Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City. Franchisee shall either: (a) Reduce or eliminate such deductibles or self-insured retentions as respect to the City, its elected and appointed officials, officers, employees, agents, representatives, attorneys,and volunteers; OR (b) Procure a bond, guaranteeing payment of losses and related investigations,claim administration and defense expenses. March 2015 10.5 Required Endorsements. All of the policies required by this Agreement shall contain, or be endorsed to contain, the following provisions: (a) City, its elected and appointed officials, officers, employees, agents, representatives, attomeys and volunteers shall be named as additional insured parties, and the policies shall specifically state that the coverage contained in the policies affords insurance pursuant to the terms and conditions as set forth in this Agreement. (b) The insurance coverage provided by the Franchisee shalt be primary to any coverage available to the City. Any insurance or self-insurance maintained by City, its officers, officials, employees or volunteers shall be in excess of Franchisee's own insurance and shall not contribute with it. (c) The insurance policies shall contain no special limitations on the scope of protection afforded to the City, its elected and appointed officials, officers, employees, agents, representatives, attorneys or volunteers. Further, the policies shall expressly waive the right of subrogation against City, its elected and appointed officials, officers, employees, agents, representatives, attorneys or volunteer;. (d) Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to the City, its elected and appointed officials, officers, employees, agents, representatives, attorneys or volunteers. (e) The insurance coverage shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. (f) Each insurance policy required by this section shall be endorsed to state that coverage SHALL NOT be suspended, voided, and/or canceled by either party, and that there shall be no reduction in the amount of coverage or in the limits applicable thereto EXCEPT after thirty(30)days prior written notice has been given to the City, said written notice to be delivered by U.S. Certified Mail, Return Receipt Requested addressed to the City Attorney and City Finance Director. (g) In its sole discretion, the City may waive all or some portion of the above referenced insurance if such waiver is in writing and executed by City's Finance Director. 10.6 Required Insurance Rating. Any insurance policy required by this Agreement shall be placed with an insurer admitted in the State of Califomia with a current A.M. Best's rating of NO LESS THAN B+:VII in the latest edition of Best's Insurance Guide. 10.7 Original Certificates Required. At all times during the term of this Agreement, Franchisee shall maintain on file with the City's Finance Director a certificate or certificates of insurance. Said certificate or certificates of Insurance shall show that the aforesaid policies are in effect in the required amounts and shall contain each of the endorsements as set forth in Section 10.3. Franchisee shall. prior to commencement of work under this Agreement, file with the City Finance Director the original certificates effecting coverage required by this section of this Agreement The endorsements are to be signed by the person authorized by that insurer to March 2015 bind coverage on its behalf. The endorsements are to be received and approved by City before Franchisee commences operation under the terms of this Agreement 10.8 Failure to Maintain Required Insurance. Franchisee agrees that if it fails to keep the aforesaid insurance policies in full force and effect the City may,at its stile option, either(i) immediately terminate this Agreement or, (ii)if insurance is available at a reasonable cost, the City may take out the necessary insurance and pay, at Franchisee's cost and expense, the premium thereon. Section 11. TERMINATION AND SUSPENSION. The City may terminate this Agreement, without cause, by giving the Franchisee thirty(30)days written notice of such termination and the effective date thereof. The City may terminate this Agreement,with cause, by giving the Franchisee(1 D) days written notice of such termination and the effective date thereof. Cancellation for cause shall be at the discretion of the City and shall be, but is not limited to, failure to supply the materials, equipment or service specified within the time allowed or within the terms, conditions or provisions of this contract. The Franchisee may not cancel this Agreement without prior written consent from the Vernon Chief of PoNce. Section 12. TEMPORARY SUSPENSION. In addition to termination or suspension as set forth in Section 11, above, the Chief of Police may temporarily suspend any Franchisee without a hearing, whenever the continued operation by the Franchisee would constitute a danger to public health, safety,welfare or public morals, including, without limitation,where there is a failure to maintain the minimum levels and standards of liability insurance or claims reserve or failure to keep in full force and effect any applicable licenses or permits required by federal, state, local law, or regulation. The notice of temporary suspension may be personally delivered to the party named and to the address given on the application pursuant to which such Franchise was issued and to the notice address stated herein,if different, or, mailed by registered or certified mail to the party named at the address given on the application pursuant to which such Franchise was issued and to the notice address stated herein, if different. Notwithstanding other notice provisions of this Agreement, the temporary suspension is effective upon the earlier of either receipt or the expiration of 3 days from the date of mailing_ The notice of temporary suspension shall include a notice of the date and time for termination hearing and all other information required by the Vernon Municipal Code. The temporary suspension shall remain effective until the decision on suspension or terminabon is made unless the suspension is lifted by written notice of the Chief of Police. Section 13. ACCEPTANCE,WAIVER. Franchisee agrees to be bound by and comply with all the requirements of Chapter 415 and this Agreement_ By entering into this Agreement. Franchisee waives, to the maximum extent permitted by law, Franchisee's right to challenge the terms of this Agreement and of Chapter 4B under federal, state or local law, or under administrative regulation, as such laws and regulations exist as of the date of signing of this Agreement. Section 14. GENERAL TERMS AND CONDITIONS. 14.1 INDEPENDENT STATUS. It is understood that in the performance under this Agreement, Franchisee shall be, and is, an independent operator,and is not an agent. March 2015 contractor, or employee of City and shall furnish services in its own manner and method. Further. Franchisee has and shall retain the right to exercise full control over the employment, direction, compensation and discharge of all persons employed by Franchisee in its business operations. Franchisee shall be solely responsible for, and shall indemnify, defend and save City harmless from all matters relating to the payment of its employees, including compliance with social security, withholding and all other wages, salaries, benefits, taxes, exactions, and regulations of any nature whatsoever. 14.2 FRANCHISE NOT AGENT. Franchisee and its subcontractors shall have no authority, express or implied, to act on behalf of or bind the City in any capacity whatsoever as agents or otherwise_ 14.3 WAIVER. The City's waiver of any term, condition, breach or default of this Agreement shall not be considered to be a waiver of any other term, condition, default or breach, nor of a subsequent breach of the one waived. 14.4 NO AS IGNIVIENT. The Franchisee shall not assign or transfer any interest in this Agreement without the express prior written consent and approval of City Council. 14.5 COMPLIANCE WITH LAWS. Franchisee shall comply with all Federal, State, County and City laws, ordinances, resolutions, rules and regulations, which are, as amended from time to time, incorporated herein and applicable to the performance hereof. 14.6 ATTORNEYS FEES. If any action at law or in equity is brought to enforce or interpret the terms of this Agreement,the prevailing party shall be entitled to reasonable attorney's fees, costs and necessary disbursements in addition to any other relief to which such party may be entitled. 14.7 INTERPRETATION. 14.7.1 Awlicable Law. This Agreement,and the rights and duties of the parties hereunder(both procedural and substantive), shall be governed and construed according to the laws of the,State of California. 14.7.2 Entire Aareement. This Agreement, including any Exhibits attached hereto and any documents explicitly referenced herein, constitutes the entire agreement and understanding between the parties regarding Its subject matter and supersedes all prior or contemporaneous negotiations, representations, understandings, correspondence, documentation and agreements (written or oral). 14.7.3 Written Amendment. This Agreement may only be changed by written amendment signed by Franchisee and the City Administrator or other authorized representative of the City, subject to any requisite authorization by the City Council. Any oral representations or modifications oonceming this Agreement shall be of no force or effect. 14.7.4 Severability. If any provision in this Agreement is held by any court of competent jurisdiction to be invalid, illegal, void, or unenforceable, such portion shall be deemed severed from this Agreement, and the remaining provisions shall nevertheless continue in full force and effect as fully as though such invalid, illegal, or unenforceable portion had never been part of this Agreement. March 2015 14.7.5 Choice of Forum, The parties hereby agree that this Agreement is to be enforced in accordance with the laws of the State of California, is entered into and is to be performed in the City of Vernon and that all claims or controversies arising out of or related to performance under this Agreement shall be submitted to and resolved in a forum within the County of Los Angeles at a place to be determined by the rules of the forum. 14.7.6 Order of Precedence. In case of conflict between the terms of this Agreement and the terms contained in any document attached as an Exhibit or otherwise incorporated by reference, the order of precedence is as follows: Charter the City of Vernon, the Vemon Municipal Code, the ordinance granting this Franchise, resolutions of the City of Vernon this Agreement, the City's Request for Proposals for Official Police Towing Services, and Franchisee's Response to the City's Request for Proposals for Official Police Towing Services. 14.7.7 Duplicate Originals. There shall be two(2)fully signed copies of this Agreement, each of which shall be deemed an original. 14.8 AUTHORITY OF FRANCHISEE. The Franchisee hereby represents and warrants to the City that the Franchisee has the right, power, legal capacity and authority to enter into and perform its obligations under this Agreement, and its execution of this Agreement has been duly authorized. Section 15. ADDITIONAL ASSURANCES. 15.1 EQUAL EMPLOYMENT OPPORTUNITY PRACTICES. Franchisee certifies and represents that,during the performance of this Agreement, Franchisee and any other parties with whom it may subcontract shall adhere to equal opportunity employment practices to assure that applicants and employees are treated equally and are not discriminated against because of their race, religion, color, national origin, ancestry, disability, sex, age, medical condition, marital status. Franchisee further certifies that it will not maintain any segregated facilities. Franchisee further agrees to comply with The Equai Employment Opportunity Practices provisions as set forth in Exhibit"C". 15.2 BUSINESS LICENSES. Franchisee shall obtain, and pay any and all costs associated therewith, any Vernon Business License, which may be regUred by the ' Vernon Municipal Code and all permits, and licenses applicable to Franchisees operations under this Franchise, which are required of Franchisee by any governmental agency. 15.3 MAINTENANCE AND INSPECTION OF RECORDS. The City, or its authorized auditors or representatives, shall have access to and the right to audit and reproduce any of the Franchisee's records to the extent the City deems necessary to insure it is receiving ail money to which it is entitled under the Agreement and/or is paying only the amounts to which Franchisee is property entitled under the Agreement or for other purposes relating to the Agreement. The Franchisee shall maintain and preserve all such records for a period of at least 3 years after termination of the Agreement. The Franchisee shall maintain all such records in the City of Vernon_ If not, the Franchisee shall, upon request, promptly deliver the records to the City of Vernon or reimburse March 2015 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 personal, salaries, private auditors, travel, lodging, meals and overhead. 15.4 CONFLICT. Franchisee hereby represents warrants and certifies that no member, officer or employee of the Franchisee is a director, officer or employee of the City of Vernon, or a member of any of its boards, commissions or committees, except to the extent permitted by law. Section 16. LIVING WAGES. Franchisee, and any subcontractor(s), shall comply with the City's Living Wage Ordinance. The current Living Wage Standards are set forth in Exhibit'D'. Upon the City's request, certified payroll records shall promptly be provided to the City. Section 17. NOTICES. E=apt as otherwise provided in this Agreement, all notices required by this Agreement or by Chapter 4B of the Vemon Municipal Code shall be given by personal service or by deposit in the United States mail, postage pre-paid and return receipt requested, addressed to the parties as follows- To City: Chief of Police Vernon Police Department 4305 Santa Fe Avenue Ven ion, CA 90058 Copies to: Director of Finance City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 Franchisee: Notice shall be deemed effective on the date personally served or, if mailed, three days the date deposited in the mail. (Signatures Begin on Next Page)_ Marsh 2015 IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by their duly authorized representatives as of the date set forth below. City of Vernon, a Cardomle charter City [FRANCHISEE'S NAME, a [State and California municipal corporation incorporated in] corporation DATED: DATED Sy: By_ Mayor 1 Mayor Pro-TernName: Title: ATTEST: By: Name: Maria E. Ayala, City Clerk Title APPROVED AS TO FORM: Henna Patel, City Attorney March 2015 EXHIBIT A REQUEST FOR PROPOSALS f I 1 March 2015 EXHIBIT B FRANCHISEE'S PROPOSAL March 2015 EXHIBIT C THE EQUAL EMPLOYMENT OPPORTUNITY PRACTICES PROVISIONS A. Contractor certifies and represents that, during the performance of this Agreement, the contractor and each subcontractor shall adhere to equal opportunity employment practices to assure that applicants and employees are treated equally and are not discriminated against because of their race, religious creed, color, national origin,ancestry, handicap, sex, or age- Contractor further certifies that it will not maintain any segregated facilities. B- Contractor agrees that it shall, in all solicitations or advertisements for applicants for employment placed by or on behalf of Contractor, state that it is an"Equal Opportunity Employer"or that all qualified applicants will receive consideration for employment without regard to their race, religious creed, color, national origin, ancestry, handicap, sex or age. C. Contractor agrees that it shall, if requested to do so by the City, certify that it has not, in the performance of this Agreement, discriminated against applicants or employees because of their membership in a protected class. D. Contractor agrees to provide the City with access to, and, if requested to do so by City, through its awarding authority, provide copies of all of its records pertaining or relating to its employment practices, except to the extent such records or portions of such records are confidential or privileged under state or federal law. E. Nothing contained in this Agreement shall be construed in any manner as to require or permit any act which is prohibited by law. March 2015 EXHIBIT D LIVING WAGE PROVISIONS Minimum Liyina Wanes: A requirement that Employers pay qualifying employees a wage of no less than$10.30 per hour with health benefits, or$11.55 per hour without health benefits. Paid and Unpaid Days Off: Employers provide qualifying employees at least twelve compensated days off per year for sick leave,vacation, or personal necessity, and an additional ten days a year of uncompensated time for sick leave. No Retaliation: A prohibition on employer retaliation against employees complaining to the City with regard to the employer's compliance with the lining wage ordinance. Employees may bring an action in Superior Court against an employer for back pay, treble damages for willful violations, and attorney's fees,or to compel City officials to terminate the service contract of violating employers. March 2015 EXHIBIT B EXHIBIT B FRANCHISEE'S PROPOSAL - 15 - FRANCHISE TOW FEE PROGRAM Submitted by: MR. C'S TOWING OF SOUTH GATE, INC. 4421 Mason Street South Gate, CA 90280 Tel: (323) 249-0575 Primary Contact: Jerry Brown, General Manager Submitted to: City of Vernon Attention: Captain Michael Gillman 4305 Santa Fe Avenue Vernon, CA 90058 COVER LETTER Mr. C's Towing of South Gate, Inc. 4421 Mason Street South Gate, CA 90280 (323) 249-0575 April 16, 2015 Mr. C's Towing of South Gate, Inc. (hereinafter "Mr. C's") is pleased to submit the following Proposal and relevant attachments in response to the City of Vernon (hereinafter "the City") Request For Proposals for the Franchise Tow Fee Program (RFP) which shall remain valid for a period of not less than ninety (90) days from the date of submittal. This cover letter is intended to provide a general overview of all relevant issues identified in the RFP, with details and elaboration in the Proposal and attachments. Mr. C's Towing, Inc., located in Los Alamitos, initially incorporated in California in 1986, under the direction of Kurtis McElroy. In 2002 Mr. C's Towing of South Gate, located in South Gate, was incorporated in California, also under the direction of Kurtis McElroy, servicing by contract, not only the City of South Gate, but now includes the City of Bell, and CHIP — East Los Angeles. Kurtis McElroy is President of the corporation, and Jerry Brown, retired after more than 30 years in law enforcement, serves as its General Manager, and is the designated contact person during the proposal evaluation process, at the above office number or his cell phone (323) 807-3515. Mr. C's is fully capable of conducting an official police towing service which complies with all of the requirements of Vernon Municipal Code Chapter 4B, and by submission of this Proposal, agrees to accept all tow requests by the City, including tows of abandoned or dismantled vehicles and/or tows requiring special equipment as well as accident or roadway clean up. Mr. C's has and/or will have, all required business licenses, permits, and insurance for the type of services performed, and as specified in Vernon Municipal Code Chapter 4B. Our facility is within the 7-mile radius of the Vernon City Hall and consists of a 55,000 sq. foot lot and 12,000 sq. feet of inside storage. The impound lot is fully fenced and secured, accessible by a solid metal electric gate for security. The property is equipped with 400 watt gas exterior lighting as well as state of the art color Digital Video Recorder (interior and exterior coverage). The inside storage includes a separate, secured area for vehicles retained as evidence and those impounded for CVC §22655.5. The investigation cage will hold six vehicles. We have an 8,000-pound capacity forklift on site to assist in moving vehicles around the warehouse and storage yard without requiring the use of a tow vehicle. The forklift is equipped with a bear claw attachment that allows it to be used as a tow vehicle, Page 2 April 16, 2015 contacting only the tires of the vehicle being moved. We also have a stationary vehicle lift in the warehouse to assist with inspections and investigations. Mr. C's has fifteen newer tow trucks, with varying features, all with a rating of one ton or greater, and includes 6 flat bed tow vehicles and one medium duty tow vehicle. Mr, C's will subcontract with Navarro's Towing and/or Pepe's Tow for any requested towing of semi-tractors, trailers or large motor homes. All of Mr. C's vehicles are equipped, operated and maintained in accordance with the provisions of California Vehicle Code §§24605, 25253, 25300, 27700 and 27907 and are inspected, each year, along with our facility, by CHP and contracted cities. Lien sales, including related paperwork and filings, are handled by Clear Choice, a licensed lien sale company. The business office, with dispatcher, is open 7 days per week. Our dispatcher is on duty 24 hours a day and vehicles are available for release from storage, day or night. A large sign, posted in a clearly visible location at the South Gate office, lists all fees associated with our business. Our proposed not to exceed rates are as follows: Towing fee $175 • Storage fee $55.00 per day • Service fee '/2 of the above towing fee Service fees, referenced above, include, but are not limited to, the following: dollying, winching, clean up, after hour release fee, lock service and/or fuel service. As we have done for other public entities with whom we have been awarded contracts, we will submit timely payment of monthly franchise fees, based upon the towing and related services performed at the request of the City, at the rate and time as directed by the City, together with supporting reports/paperwork. Our drivers, many of whom are bilingual, are carefully screened to ensure the quality of personnel necessary to interact with clients and members of the public. They are highly qualified in towing and recovery. All drivers are CTTA and/or Wreckmaster trained and certified. A monthly update of company policies is conducted to ensure safety and consistency in the field. Drivers are required to submit to random drug testing, their driving record is checked on a regular basis, and have a criminal history check performed. The drivers' compensation complies with the Living Wage Ordinance Page 3 April 16, 2015 We consider our Company a highly qualified tow service company, with nearly three decades of collective experience, capable of furnishing impound, towing and storage services, with the necessary trained personnel, and equipment, within the required specifications and response times, the City is now seeking by this RFP for the Franchise Tow Fee Program. In addition to providing the scope of work contemplated by the Franchise Tow Fee Program, Mr. C's has been involved in community service charitable functions and events, such as Community Volunteer Programs, Police Explorer Programs, Police Widows and Orphans Fund and Community Improvement efforts to strengthen its community involvement with other local governments, and would anticipate similar involvement with the City of Vernon if awarded the contract. Mr. C's has been operating for more than a decade with a record of outstanding, problem free service to other local cities and police departments in the Los Angeles and looks forward to being able to do so for the City of Vernon. We sincerely appreciate your review of our Proposal and thank you in advance for your consideration. MR. C'S TOWING OF SOUTH GATE, INC. By: Y - Kurtis McElrf y, President } PROPOSAL QUALIFICATIONS Mr. C's Towing of South Gate, Inc. (hereinafter "Mr. C's") is a California corporation, incorporated in 2002. Kurtis McElroy is President and the principal place of business is located at 4421 Mason St., South Gate, CA 90280: telephone (323) 249-0575. Permits/Licenses Mr. C's maintains the following permits/licenses, all of which are current and in good standing: ➢ Motor Carrier Permit (State of California Permit#CA41320) ➢ Business License (currently holds licenses for 10 cities in the Southeast area) A business license for the City of Vernon will be obtained if awarded tow contract. Insurance Mr. C's maintains the following insurance policies with the following limits: ➢ Commercial General Liability $1 million/$4 million umbrella ➢ On-Hook Liability $250,000 ➢ Business Automobile Liability $1 million ➢ Garage Liability $1 million ➢ Garagekeepers Liability $500,000 Workers' Compensation ICW Statutory Limits Professional Qualifications Mr. C's understands the City of Vernon (hereinafter "the City") seeks a tow service company to provide swift, professional service in the removal of any vehicle, as directed by the Vernon Police Department, from any City street. It is further understood the scope of services required includes furnishing impound, towing and storage services to the Vernon Police Department and the City as directed by Vernon PD. Mr. C's is fully capable and qualified to meet all such requirements and scope of services, including tows of abandoned or dismantled vehicles and/or tows requiring special equipment. Mr. C's has been operating since 1986, with a record of outstanding, problem free service to other local cities and police departments in Los Angeles and Orange counties. Services provided include response to calls in the field, and participating in DUI check points. Its President, Kurtis McElroy, along with other key personnel, bring extensive knowledge, background, training and experience to the table, having been in the tow service business nearly three decades. 1 Mr. C's is capable of towing and storing vehicles impounded by the police for any period of time, including in excess of 30 days, as well as clean up and disposal of debris at the scene of an accident at which any vehicle to be towed was involved. The impound lot is fully fenced and secured, accessible by a solid metal electric gate for security. The exterior yard has a capacity of at least 300-350 vehicles. The property is equipped with 400 watt gas exterior lighting as well as state of the art color Digital Video Recorder (interior and exterior coverage). The inside storage can hold approximately 50-65 vehicles, depending on size, in addition to which there is a separate, secured area for vehicles retained as evidence and those impounded for CVC §22655.5. The investigation cage will hold six vehicles. Photos of the property are provided as part of Appendix "A". Lien sales, including related paperwork and filings, are handled by a licensed lien sale company, Clear Choice, with lien sales held every Wednesday References Mr. C's list of clients has grown over the years because of the attention to detail and to the needs and requirements of law enforcement agencies and includes the following for both locations: AGENCY LOCATION SERVING SINCE City of Be11 Police Dept Bell 2014 - Present (323) 585-1245 California Highway Patrol ' Westminster 1987 — Present (714) 892-4426 _ California Highway Patrol Westminster 1995 — Present (Evidence Contract) (714) 892-4426 California Highway Patrol East Los Angeles 2003 — Present (562) 868-0503 La Palma Police Dept. La Palma 1991 — Present 714 5223-4552 Los Alamitos Police Dept. Los Alamitos 1987 — Present (562) 431-2255 Los Angeles Sheriffs Hawaiian Gardens 1997 — Present Dept. (562) 866-9061 - -- Orange Co. Auto Theft Where needed 1994 — Present Task Force (714) 634-1385 Seal Beach Police Dept. Seal Beach 1992 — Present I (562) 431-2541 Signal Hill Police Dept. Signal Hill 1994 — Present 562 989-7200 South Gate Police Dept. South Gate Dec 2002- Present (323)563-5400 2 Operations Qualifications The General Manager, .ferry Brown, has been with Mr. C's since incorporation and his retirement, after more than 30 years, in California law enforcement. As such, he has an intimate understanding of the needs and operations of a police department relative to the services required from a tow service. Mr. Brown is also highly involved in local city activities, including Chamber of Commerce in South Gate and Rotary Club of South Gate. He leads the Company in involvement in many City and Police Department activities for many of the cities in the surrounding Southeast area. Performance Qualifications Dispatch Process In order to provide the required services, a dispatch operator is on duty 24 hours a day, 365 days a year. Mr. C's employs six dispatchers. The dispatching system is geared for prompt dispatching of calls, with corresponding prompt response. An analysis of Mr. C's records reveals an average arrival time in response to calls in the field is less than 10 minutes, exceeding the requirements of Sec. 4B.11 of the Vernon Municipal Code, which provides for average response time not to exceed 20 minutes, and a maximum not to exceed time of 30 minutes. All tow trucks and base station are equipped with two-way radios on the 400 band. All calls are recorded in a carbon-copied call back book, by date and number, for a permanent record. The record includes the type of call, date, time, and location, and year, make and model of the vehicle. All such records are maintained in accordance with the business retention practice of at least three years. Office The office is open during business hours (0700 to 1800 hours, Monday through Friday) and vehicles are available for release from impound and storage 24 hours a day. Alternate hours, as directed by the City, will also be available by Mr. C's, in order to accommodate special City events. A designated area in the office is provided exclusively for use by law enforcement personnel, with access to a phone, facsimile, copier, computer and all necessary office supplies. Drivers Mr. C's currently employs a total of 25 drivers. All drivers, many of whom are bilingual, are carefully screened to ensure the quality of personnel necessary to interact with clients and members of the public. They are highly qualified in towing and recovery. All drivers are CTTA and/or Wreckmaster trained and certified. Each driver wears a Mr. C's uniform, complete with nametag that is clearly visible. They are required to be neat and clean, with hair, mustaches and beards neatly trimmed. Each driver carries a 3 change of uniform to ensure proper appearance and cleanliness. Color identification cards for all employees will be provided should the contract being awarded to Mr. C's. A monthly update of company policies is conducted to ensure safety and consistency in the field. Drivers are required to submit to random drug testing, their driving record is checked on a regular basis through a service with whom Mr. C's has a contract, and each driver has a criminal history check performed. Mr. C's employee compensation complies with the Living Wage Ordinance for qualifying employees. Attached at Appendix "B" is primary driver/personnel information, for exclusive use, not for public disclosure, for review and consideration by the City of this Proposal. Equipment Qualifications All tow vehicles and equipment of Mr. C's comply with all state and applicable federal requirements, where applicable. Mr. C's will subcontract with Navarro's Towing and/or Pepe's Tow for any requested towing of semi-tractors, trailers or large motor homes. Vehicles available to perform tow services to the City meet all requirements of Sec. 4B.9C of the Vernon Municipal Code, properly identified by business name and Unit Number, and include the following: ➢ Flatbed carrier: 2014 Hino Model 260 (Unit 106) 2014 Hino Model 260 (Unit 107) 2013 Hino Model 260 (Unit 108) 2014 Hino Model 260 (Unit 109) 2014 Hino Model 260 (Unit 5) 2014 Hino Model 260 (Unit 110) Class A Tow: 2014 Ford F450 (Unit 902) 2014 Ford F450 (Unit 903) 2014 Ford F550 (Unit 1) 2012 Ford F450 (Unit 2) 2012 Ford F450 (Unit 4) 2009 Dodge Ram 5500 (Unit 102) 2007 Ford F450 (Unit 103) 2000 GM Sierra 3500 (Unit 3) ➢ Class B Tow: 2008 Kenworth T280 (Unit 105) We have an 8,000-pound capacity forklift on site to assist in moving vehicles around the warehouse and storage yard without requiring the use of a tow vehicle. The forklift is equipped with a bear claw attachment that allows it to be used as a tow vehicle, contacting only the tires of the vehicle being moved. We also have a stationary vehicle lift to assist with inspections and investigations located in the warehouse. Attached as part of Appendix °C" are photos of the vehicles. 4 FRANCHISE FEES AND COSTS Our proposed rates not to exceed are as follows: • Towing fee $175 • Storage fee $55.00 per day • Service fee '/z of the above towing fee Service fees, referenced above, include, but are not limited to, the following: dollying, winching, clean up, after hour release fee, lock service and/or fuel service. A large sign, posted in a clearly visible location at the South Gate office, lists all fees associated with our business. Mr. C's accepts the option of payment by MasterCard and Visa. As we have done for other public entities with whom we have been awarded contracts, Mr. C's will submit timely payment of monthly franchise fees, calculated based upon the towing and related services performed at the request of the City, at the rate and time directed by the City, together with supporting report in a spreadsheet format. The report is prepared from the invoices and logbook information prepared concurrent with the call for service and maintained by Mr. C's in accordance with its retention practice for a minimum of three years. Books and records are made available by Mr. C's for inspection by the City. CONDITIONS FOR RESPONSES TO RFP Mr. C's understands and accepts the conditions that apply to the RFP set forth in Section 8 of the RFP, requesting that Appendix "B" of driver personal information, be excluded from becoming a matter of public record, for privacy reasons. Respectfully submitted, MR. C'S OF SOUTH GATE, INC. /<_— KURTIS M LROY President 5 APPENDIX "A" - PROPERTY i Mr. C's Towing of South Gate, Inc. South Gate Facilities Located at: 4421 Mason St., South Gate, CA 90280 (323) 249-0575 i777- - xe6 To 4 Hour Professional Service Sm M r y - r A Ll * i Ll Manager's Office inside Lobby - y 1 Main Office showing both Pick-Up Windows Main Video Survelliance station, separate station for Secure Areas not shown w� - I Intside Pick-Up Window Customer Waiting Room r I I Ca bm �n� I Main Gate to Storage facilities Entrance to Main Outside Storage Yard WIN : qvjrAm►^ r r Main Outside Storage Yard View into Main Inside Storage Facility .vArA Secure Police Storage Area Secure Police Storage and Inspection Lift APPENDIX " B" - PERSONNEL Pursuant to California Government Code § 6254(c), personal information is non- disclosable; therefore, the next 12 pages are hereby withheld. APPENDIX "C" - VEHICLES 'ram'�, �+ y r � �'�+' y� * - • ry } ! '-�_ -:� -%,.. Jt _ . _ r w Fit '' All Ago- •w r# 1 Al $-ads 4 H "f E6. — * � r IF IT L4 F =F t �4Ltl7r3�}6 7JGL'�Ji,Ti+i7IV� � � ` " J ,vy —e.� �`— �, _ �; �. �{�' � _� '.irie � t � *#* • '� a _*� �� +�.. �' ,p � � ■ � �P:.� T �`*yam �� F�. i Alp 04 M .TEsiRl:fiY AFA AIRM= ; O AN- - - ,.... 1Qa = _ i y1 - ♦ _ -- . APT 'I =h �•� � -T i� � � � 'tom �t �, ��'+ I k 1 Mt IF ry M1k T { . � tz 0- ' ., i, T -� -- - + L1N411YL5 r 5+ go FF_ � I fir■ i� �+*' � .. r F i F jy 4 Au ' tIL .` AFFIDAVIT OF NON-COLLUSION AFFIDAVIT OF NON-COLLUSION BY CONTRACTOR STATE OF CALIFORNIA ) ) SS COUNTY OF LOS ANGELES ) Kurtis McElroy, being first duly sworn deposes and says that he is the President of Mr. C's Towing of South Gate, Inc., who submits herewith to the City of Vernon a bid/proposal: That all statements of fact in such bid/proposal are true; That such bid/proposal is genuine and not collusive or sham; That said bidder has not, directly or indirectly by agreement, communication or conference with anyone attempted to induce action prejudicial to the interest of the City of Vernon, or of any other bidder or anyone else interested in the proposed contract; and further That prior to the public opening and reading of bids/proposals,said bidder: a. Did not directly or indirectly, induce or solicit anyone else to submit a false or sham bid/proposal; b. Did not directly or indirectly, collude, conspire, connive or agree with anyone else that said bidder or anyone else would submit a false or sham bid/proposal, or that anyone should refrain from bidding or withdraw his/her bid/proposal; C. Did not, in any manner, directly or indirectly seek by agreement, communication or conference with anyone to raise or fix the bid/proposal price of said bidder or of anyone else, or to raise or fix any overhead, profit or cost element of his/her bid/proposal price, or of that of anyone else; d. Did not, directly or indirectly, submit his/her bid/proposal price or any breakdown thereof, or the contents thereof, or divulge information or data relative thereto, to any corporation, partnership, company, association, organization, bid depository, or to any member or agent thereof or to any individual or group of individuals, except the City of Vernon, or to any person or persons who have a partnership or other financial interest with said bidder in his/her business. I certify under penalty of perjury that the above information is correct. By- _ Title: President €CURTIS WEL Y Date: /1S "F EXHIBIT C EXHIBIT C THE EQUAL EMPLOYMENT OPPORTUNITY PRACTICES PROVISIONS Contractor certifies and represents that, during the performance of this Agreement, the contractor and each subcontractor shall adhere to equal opportunity employment practices to assure that applicants and employees are treated equally and are not discriminated against because of their race, religious creed, color, national origin, ancestry, handicap, sex, or age. Contractor further certifies that it will not maintain any segregated facilities. B. Contractor agrees that it shall, in all solicitations or advertisements for applicants for employment placed by or on behalf of Contractor, state that it is an "Equal Opportunity Employer" or that all qualified applicants will receive consideration for employment without regard to their race, religious creed, color, national origin, ancestry, handicap, sex or age. C. Contractor agrees that it shall, if requested to do so by the City, certify that it has not, in the performance of this Agreement, discriminated against applicants or employees because of their membership in a protected class. D Contractor agrees to provide the City with access to, and, if requested to do so by City, through its awarding authority, provide copies of all of its records pertaining or relating to its employment practices, except to the extent such records or portions of such records are confidential or privileged under state or federal law. E. Nothing contained in this Agreement shall be construed in any manner as to require or permit any act which is prohibited by law. - 16 - EXHIBIT D LIVING WAGE PROVISIONS Minimum Living Wages: A requirement that Employers pay qualifying employees a wage of no less than $10.30 per hour with health benefits, or $11.55 per hour without health benefits. Paid and Unpaid Days Off: Employers provide qualifying employees at least twelve compensated days off per year for sick leave, vacation, or personal necessity, and an additional ten days a year of uncompensated time for sick leave. No Retaliation: A prohibition on employer retaliation against employees complaining to the City with regard to the employer's compliance with the living wage ordinance. Employees may bring an action in Superior Court against an employer for back pay, treble damages for willful violations, and attorney's fees, or to compel City officials to terminate the service contract of violating employers. - 17- 410 � � 1 RECEIVED JUL 14 2015 CITY CLERKS OFFICE STAFF REPORT CITY ADMINISTRATION DATE: July 21,2015 TO: Honorable City Council FROM: Mark C. Whitworth,City Administrator RE: Discussion of Proposed Elimination of Priority for First Responders in Leasing City-Owned Housing Recommendations A. Hold a discussion regarding the joint recommendation made by the Housing Commission and City staff to eliminate the priority for first responders in leasing City-owned housing. B. If the City Council concurs with the aforementioned recommendation, direct staff to prepare an ordinance to amend Section 2.125(b) of the Vernon Municipal Code to remove the first responder leasing priority, effective at 5:01 p.m. on December 8, 2015. Background At the July 7, 2015 City Council meeting, City staff presented the first reading of Ordinance No. 1230. At that time, the proposed ordinance included the following recommended revisions related to the Vernon Housing Commission: 1. Amend Section 2.125(b) of the Vernon Municipal Code to remove the first responder leasing priority, effective at 5:01 p.m. on December 8, 2015. 2. Amend Section 2.123(a) of the Vernon Municipal Code to establish Commission Member terms to run from July 1 through June 30, effective July 1, 2019 for four of the seven seats, and effective July 1, 2021 for the three remaining seats. 3. Include uncodified sections to establish the aforementioned upcoming terms in order to fully effectuate the July 1 through June 30 terms. Upon consideration and deliberation of the proposed ordinance, the City Council voted to amend the ordinance to include only the revisions outlined in numbers 2 and 3 above, and approved the first reading of Ordinance No. 1230, as amended. As such, Ordinance No. 1230, as amended, is being presented for adoption in a separate staff report. The City Council voted to defer item 1, relating to the proposed removal of the first responder leasing priority, to the next meeting for further discussion. Additional information was also requested in relation to the upcoming discussion. This matter is addressed below. Removal of First Responder Leasing Priority Section 2.125(b) of the Vernon Municipal Code ("Code") requires the Housing Commission to provide first responders, as defined by the Commission with some minimum requirements imposed by the City, a first priority in leasing units unless or until four (4) or more units are concurrently occupied by first responders. As required by the Code, first responders are defined as: "City firefighters, police officers, emergency medical technicians, and similar positions held by employees of businesses located in Vernon." As further required by the Code, and in order to clarify the last category of the aforementioned, the Commission established the following definition of a"business first responder": "A business first responder is someone who is employed by a business located in the City of Vernon, regularly works 30 hours or more per week at a location in the City of Vernon, and holds either a current Emergency Medical Technician (EMT) certificate or a Community Emergency Response Training("CERT") certificate recognized by the City of Vernon." As many of you may recall, the establishment of the Housing Commission in July 2011 was one of the earliest and most critical objectives among a sweeping series of good governance reforms enacted by the City in response to efforts by members of the state legislature to disincorporate the City. At the time the Commission was established and the first responder leasing priority was imposed by the City Council, there was much discussion and debate among the Commission, key stakeholders, and interested parties as to the importance and value of such a priority and the particular rules and limitations that should apply to such a priority if it were to exist. Pros and cons, such as the added safety provided to people and property versus the potential perception of favoritism and possible disproportionate representation that could result, were fleshed out by the Commission and the City Council. In light of the historic transition in which the City had entered and after careful consideration of all factors, the Council established the first responder priority and limit as outlined above. Now, nearly four years after the Commission's widely successful overhaul of the City's housing policies and procedures, the question of the continued importance and value of the first responder leasing priority compared against some of the practical challenges and negative perceptions it brings about has come up. As such, City staff presented the matter to the Housing Commission for discussion at its June 10, 2015 meeting. The discussion included the following additional questions/discussion points that would need to be addressed if the first responder leasing priority were to continue, along with City staff's thoughts and recommendations: 1. How should on-going first responder status be verified? 2. What should happen if there is a change in first responder status during tenancy? 3. Should there be any specific occupancy requirements for first responders? Staff recommended that, if the Commission were to recommend the discontinuation of the first responder leasing priority, consideration be given to the timing of such a change so as not to unfairly impact any self-identified first responders who have submitted Expression of Interest Forms under the current priority for the lottery drawings to be held this calendar year. As such, staff recommends the discontinuation of the first responder leasing priority take effect at 5:01 p.m. on December S, 2015, immediately following the deadline for interested parties to submit Expression of Interest Forms for the December 9, 2015 lottery drawing. The Housing Commission is prepared to take up the discussion of what, if anything, should be addressed in relation to the three existing tenants who obtained their units as a result of the first responder leasing priority, and make recommendations to the City Council accordingly. First Responders Residine at Vernon Village Park During the deliberation at the July 7, 2015 meeting, the Council asked City staff to find out how many first responders, as defined by the City Council and the Housing Commission, are currently living at Vernon Village Park,the new, privately-owned and operated, 45-unit apartment complex at the southeast corner of the City. Staff has been advised by the developer of the project, Meta Housing Corporation ("Meta"), that all 45 units are now occupied(including the on-site manager's unit), and that none of the units are occupied by first responders. On a somewhat related note, Meta has also advised that eleven tenants work at a business located within the City of Vernon, and three tenants previously lived within a one-mile radius of the site. First Responders Residing in City-Owned Housing Currently,there are three first responders residing in City-owned housing units (two City Firefighters and one City Police Officer)that obtained their units through the leasing priority. However, one of the Firefighter tenants has notified the City of his intent to vacate his unit on August 31, 2015. Pursuant to Section 2.125(b) of the Vernon Municipal Code, the first responder leasing priority is provided until four or more units are concurrently occupied by first responders. There are 25 interested parties on the current wait list, and 7 of those have indicated they are first responders. Fiscal Impact There are no known or anticipated costs associated with the discussion and recommendations outlined in this staff report. Attachment(s) None. Page 3 of 3