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HomeMy Public PortalAboutA2009-06-02CC'ibis Agenda contains a brief general description of each Item to be considerea'. Copies of the .Staff reports or other written dacurnentation relating to each iCem of business referred to an the Agenda are on file in the O,rficc of the City Clerk and are available for public inspection. Any person ut~ho has a 7~uestion conren~ing any of the agena'a items may call the City /Warrager at (310) 603-0220; ext. 20d. Procedures for Addressing the Co~mcil IIV ORDER TO EXPEDITE CITY COUNCIL BUSINESS, VVE ASK TFIAT ALL PERSONS WISHING TO ADDRESS THE COUNCIL FILL OUT A FORM PROVIDED AT THE DOOR, AIVD TO TURN IT IN TO THL= CITY CLERK PRIOR TO THE START OF THE MEETING. FAILURE TO FILL OUT SUCH A FORM WILL PROIiIBIT YOU FROM ADDRESSING THE COUNCIL IN THE ABSENCE OF THE UNANIMOUS CONSENT OF THE COUNCIL. AGENDA ITEMS ON FILE POR CONSIDERATION AT THE REGULAR MEETING OF THE LYNWOOD CITI' COUNCIL TO BE HELD ON JUNE 2, 2009 COUNCIL CHAMBERS 11330 BULLIS ROAD, LYNWOOD, CA 90262 5:00 P.M. MARIA TERESA SANTILLAN MAYOR AIDE CASTRO MAYOR PRO-TEM JIM MORTON COUNCILMEMBER CITY MANAGER ROGER L. HALEY CITY CLERK MARIA QUINONEZ OPENING CEREMONIES L~ 4w' ~ @+~. fwd MAY 2 8 2009 CITY Qf" LYN1NCyC3C' CITY CLERKS S~FFIC tlUkutiel Q.uiv~avt~~- ~~y cQ.e~~ ~ ~-s ALFREDO FLORES COUNCILMEMBER RAMON RODRIGUEZ COUNCILMEMBER CITY ATTORNEY FRED GALANTE CITY TREASURER SALVADOR ALATORRE 1. CALL TO ORDER 2. CERTIFICATION OF AGENDA POSTING BY CITY CLERK 3. ROLL CALL OF COUNCIL MEMBERS Aide Castro Alfredo Flores Jim Morton Ramon Rodriguez Maria T. Santillan 4. PLEDGE OF ALLEGIANCE INVOCATION G. PRESEN I AIIONS/PROCLAMATIONS Electric (Green) Buses Presentation Sheriff Capiain Jarncs I-iellmold -Update on I_aw Enforcement Issues < Ciiy Council Memhers Reporting on IVeetings Attended (Gov. Code Section 53232.3(D)) COUNCIL RECESS TO: LYNWOOD REDEVELOPMEN I AGENCY PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Gnly) PUBLIC ORAL COMMUNICATIONS IF AN ITEM IS NOT ON THE AGENDA, TI-IERE SHOULD BE NO SUBSTANTIAL DISCUSSION OF THE ISSUE BY THE COUNCIL, BUT COUNCIL INAY REFER THE MATTER TO THE STAFF OR SCHEDULE SUBSTANTIVE DISCUSSION FOR A FUTURE MEETING. (The Ralph M. Brown Act, Government Code Section 54954.2 (a).) PUBLIC HEARINGS 8. LYNWOOD LANDSCAPE MAINTENANCE ASSESSMENT DISTRICT, FY 2009-2010 Comments On May 6, 2009, the City Council approved the Engineer's report and further proceeded to give notice of the time and place for a public hearing on all matters relating to said assessment district and the proposed assessment rates. The assessment rate will be $1.90 per front footage for residential and commercial lots. This rate remains the same as that of last year. Recommendation: Staff recommends that the City Council hold a public hearing to: Set the assessment rates for the Landscape Maintenance Assessment District at $1.90 per front footage for residential and commercial properties (Same as FY 97-98 through FY 08-09 rates); and 2. Adopt the attached resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD ORDERING TJ-1E LEVY OF ANNUAL ASSESSMENTS FOR THE EXISTING LYNWOOD LANDSCAPE MAINTENANCE ASSESSMENT DISTRICT FOR FISCAL YEAR 2009-2010". 9. LYIVWOOD IJGH I ING ASSESSMENT DISTRICT, FY 7_009-2_U10 Comments: On fVlay 6, 2009, the City Council approved the Enginc-er's report and further proceeded to give notice of the time and place for a public hearing on all matters relating to said assessment district and the proposed assessment rates. The assessment rates will be $1.62 and $3.01 per foot of front footage for residential and commercial Tots, respectively. These rates remain the same as those of last year. Recommendation: Staii recanmends that the City Council hold a public hearing to: 1. Set the assessment rates for the Lynwood Lighting Assessment District at $1.62 per front footage for residential properties and $3.01 per front footage for commercial properties (Same as FY 97-98 through FY 08-09 rates); and 2. Adopt the attached entitled resolution: "A RESOLUTION OE THE CITY COUNCIL OF THE CITY OF LYNWOOD ORDERING THE LEVY OF ANNUAL ASSESSMENTS FOR THE EXISTING LYNWOOD LIGHTING ASSESSMENT DISTRICT FOR FISCAL YEAR 2009-2010". 10. NEIGHBORHOOD STABILIZATION PROGRAM APPLICATION SUBMITTAL PUBLIC HEARING AND APPROVAL OF THE APPLICATION Comments The goal of the Neighborhood Stabilization Program is to address abandoned and foreclosed properties throughout the United States. The State of California (State) received $145 million from the Federal government (HUD) authorized under Title III, Section B, of the Housing and Economic Recovery Act of 2008 (HR 3221). This grant will be administered by the California Department of Housing and Community Development (HCD). HCD created a secondary funding process that will distribute funds to cities based upon joint agreements or to their counties. The City is applying for a grant amount of up to $916,161. Recommendation: It is hereby recommended that the City Council 1. Open the public hearing to receive public comment on the application that will allow the City to receive $916,161 in Neighborhood Stabilization Program (NSP) funds from the State of California Department of Housing and Community Development to primarily help stabilize and revitalize communities hard hit by the mortgage crisis; 2. Approve the City's Anti-Displacement and Relocation Plan; 3. Adopt the attached resolution entitled, "A RESOLUTION APPROVING AN APPLICATION FOR FUNDING AND THE EXECUTION OF A GRANT AGREEMENT AND ANY AMENDMENTS THERETO FROM THE STATE OF CALIFORNIA NEIGHBORHOOD STABILIZATION PROGRAM (NSP)'; and 4. Authorize the City Manager to enter into a Joint Agreement with the City of Carson, Gardena, and West Covina in order to meet the minimum application threshold of $1 million in order to apply for these funds. ~c~r~~~~~T ~~e~~~z,~~ All matters listed under the Consent Calendar will be acted upon by one motion affirming the action recomrncndcd on the agenda. There will be no separate discussion on these items prior io voting unless members of the Council or staff request specific items to be removed from the Consent Calendar for separate action. 11. MINUTES OF PRE\/IOUs MEETINGS: Regular Meeting - IVlarch 17, 2009 12. APPROVAL OP THE WARRANT REGISTER Comments: City of Lynwood warrant register dated ,June 2, 2009 for FY 2008-2009. Recommendation: Staff recommends that the City Council approve the warrant register. 13. SELECTION OF A FIRM TO PROVIDE PROFESSIONAL AUDITING SERVICES FOR THE CITY OF LYNWOOD, LYNWOOD REDEVELOPMENT AGENCY AND LYNWOOD INFORMATION INC. Comments: The City's contract with the CPA firm Moss, Levy & Hartzheim for annual audit services has expired. On March 17, 2009, the City Council authorized staff to solicit proposals for professional audit services beginning with the audit for the fiscal year ending June 30, 2009. A Request for Proposal (RFP) was posted on Lynwood's websile and a notice inviting bids was published in the local newspaper. The RFP was also sent to eighteen firms. The City received seven proposals. Recommendation: Staff recommends that the Lynwood City Council adopt a resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD AWARDING A THREE-YEAR CONTRACT FOR PROFESSIONAL AUDIT SERVICES FOR THE CITY OF LYNWOOD, LYNWOOD REDEVELOPMENT AGENCY AND LYNWOOD INFORMATION INC. BEGINNING WITH FISCAL YEAR ENDING JUNE 30, 2009 TO THE FIRM MAYER HOFFMAN MCCANN". " 14. CITI"S OPPOSITION TO THE STATE'S SEIZURE OF LOCHI_ PROPERTY THY. 1UNDS HND TFiE CONTINUE=D ADOPTION OP UNFUNDED MANDATES f~Y TT-IE STATE OF CAL!1=ORIVIP. Cornrnenis: On May 5, 2009, the State of California Department of Finance announced its proposal for Governor Arnold Schwarzenegger to borrow over $2 billion in local property tares from cities, counties and special districts to balance the state budgel. Recommendation: Staff recommends that the Cily Council adopt the attached resolution entitled, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD DECLRRING THE CITY'S STATE OF SEVERE FISCAL HARDSHIP DUE TO THE STATE'S SEIZURE OF LOCAL PROPERTY TAX FUNDS AND THE CONTINUED ADOPTION OF UNFUNDED MANDATES BY THE STATE OF CALIFORNIA". 15. AWARD OF CONSULTING SERVICES CONTRACT TO ADVANCE APPLIED ENGINEERING, INC. (AAE) FOR THE PAVEMENT MANAGEMENT SYSTF_M UPDATE PROJECT, PROJECT NO. 4011.67.997 Comments: In order to continue to receive its allocation of Proposition A and C funds, MTA requires that all cities maintain and update their Pavement Management System. The City's current Pavement Management System database needs to be updated. Staff is recommending that the Pavement Management System Update Project contract be awarded to AAE, Inc. Recommendation: Staff recommends that the City Council adopt the attached resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD AWARDING A CONSULTING SERVICES CONTRACT TO ADVANCE APPLIED ENGINEERING, INC. FOR PREPARATION OF THE CITY'S PAVEMENT MANAGEMENT SYSTEM UPDATE PROJECT, PROJECT NO. 4011.67.997 FOR THE NOT-TO-EXCEED FEE OF $36,730 AND AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT". G. SUBSTANh~IAL CItANGE IN THE OS-09 ACTION PLAN AIVD APPROVAL 01= IHE ACTIONS f~IECGSSARY TO APPLY FOR CDBG-R FUt~IDS Comments: On IVlay 6, 2009, the Federal Government issued a Notice of Funding Availability for the Community Development Grant-Recovery (CDBG-R). Lynwood was allocated $422,000 in additional Federal funds to administer the CDBG-R Program. This Recovery Act fund is designed to provide stimulus money to the City to implement programs which should help the City meet its economic job creation goals and housing goals. The current proposed use of these funds is as follows: 1. Rebuild Sanborn Street from Virginia to Louise Street. 2. Create an emergency grant program to assist homeowners who have home repairs deemed to be an "emergency'. 3. Add funds to the City's Home Rehabilitation program. If the City does not approve and submit an application by June 5, 2009, the Federal Government will reallocate the funds to other jurisdictions. Upon approval, staff vdill submit an application for approval by the Deparlinent of Housing and Urban Development (I iUD). If approved by HUD, funds to administer the program may be ready as soon as an Agreement is executed. Recommendation: Staff recommends that the City Council adopt the attached resolution entitled; "A RESOLUTION OF THE CITY OF LYNWOOD APPROVING A SUBSTANTIAL CIiANGE IN THE 08-09 ACTION PLAN AND CONSOLIDATED PLAN AND AUTHORIZING THE CITY MANAGER TO TAKE ALL APPROPRIATE AND PROPER ACTION TO APPLY FOR AND RECEIVE FOR THE CITY OF LYNWOOD THE AMOUNT OF $422,000 IN COMMUNITY DEVELOPMENT BLOCK GRANT-RECOVERY FUNDS". 17. SUMMER FOOD SERVICE AGREEMENT Comments For the past nineteen years, the City of Lynwood has been a local sponsoring agency for the Summer Food Service Program funded through a reimbursement grant received from the State Department of Education (DOE). Costs for meals are at a fixed rate provided by the United States Department of Agriculture (USDA). Food provided for the program must come from a certified Vendor who is approved by the Department of Education and the USDA. Recommendation Staff recommends that the City Council adopt the attached resolution entitled, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD AUTHORIZING THE MAYOR TO EXECUTE THE ATTACHED AGREEMENT BETWEEN THE CITY OF LYNWOOD AND THE LYNWOOD UNIFIED SCHOOL DISTRICT TO PROVIDE MEALS FOR THE SUMMER FOOD SERVICE PROGRAM". i8. PROPOSITION A-EXCESS FUNDS Comments: -fhe Cily has received an allocation of Proposition "A" Excess Funds from the Los Angeles County Regional Parks and Open Space District. These funds may be used for park, recreation and open space improvements. In order to receive these funds the City is required to adopt a resolution approving the application for These funds. Recommendation: Staff recommends that the City Council adopt the attached resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD APPROVING THE APPLICATION FOR PROPOSITION "A" EXCESS GRAN I FUNDS FROM THE LOS ANGELES COUNTY REGIONAL PARK AND OPEN SPACE DISTRICT FOR THE HAM PARK EXPANSION, POCKET PARKS AND CARNATION PARK IMPROVEMENTS AND AUTHORIZING THE MAYOR OR DESIGNEE TO EY.ECUTE THE AGREEMENT". 19. CLAIM FOR DAMAGES OF BENITO PRECIADO Comments On May 7, 2009, Mr. Preciado filed a claim for damages alleging property damage due to a tree branch that fell on his vehicle which was .parked at the accident location of 4103 Josephine Street, Lynwood, CA 90262. Recommendation: Staff recommends that the City Council reject the claim of Benito Preciado v. City of Lynwood and tender the claim for indemnification to California Western Arborists. Section 602 of the contract requires that this company indemnify the City against all expenses arising out of work performed in accordance with this agreement. 20. REVIEW OF CITY TREASURER'S CHECK SIGNING POLICY & PROCEDURES Comments The City Attorney's office was asked to review the January 9, 2008 Inter-Office Memo from the City Treasurer describing the Check Signing Policy & Procedures ("Policy') implemented by the Treasurer's Office effective February 5, 2008 for consistency with legal requirements. Following such review, the City Attorney's office opines that, although having a procedure to clarify the process to approve payments by the City of Lynwood is important, the Policy could be significantly improved to streamline the approval process, while preserving the safeguards sought by the Treasurer's Office. Recommendation: That the City Council direct the City Attorney to prepare revisions to the Check Signing Policy & Procedures adopted by the City Treasurer's Office for consideration and approval by the City Council at a future meeting. 7_i. INPRF,STRUCTURAL PROJECT EIVIiANCEMENTS FOR 11300 A.lL.AIVTIC AI=I=ORDABLE SENIOI ~ HOUSING PROJECT Comments: On February i7, 2009, after a completed Request for Proposal in which Cedars Engineering Construction, Inc. was the successful bidder, the Lynwood Redevelopment Agency and City of Lynwood approved a Disposition and Development Agreement (DDA) with Cedars Engineering Construction, Inc. (Developer). The DDA required the developer to pave Sanborn Street between Atlantic Avenue to the property line. The DDA also called for standard flooring in the community room. Based upon the current poor pavement conditions of Sanborn Street and based upon the anticipated Stimulus funds to pay for improvements on Sanborn from Virginia Street to Louise Street, staff has determined that it is more efficient to utilize Cedars Engineering Construction, Inc. to pave a larger portion of the street so as to have a continuously new street. Staff has also researched the gains in the durability, functionality, deriving from the use of "green" Bamboo flooring and determined that it is cost effective to install bamboo flooring in the community room at 11300 Atlantic Avenue. Including the additional investment by the Developer, the benefit will far outweigh the costs and thus staff is seeking approval for this item. Recommendation: Staff recommends that the City of Lynwood adopt the attached resolution entitled: "A RESOLUTION OF THE CITY OF LYNWOOD AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT HIRING CEDARS ENGINEERING CONTRUCTION, INC. TO GRIND AND OVERLAY SANBORN STREET FROM PROJECT LIMITS TO VIRGINIA STREET AND PROVIDE ENVIRONMENTALLY FRIENDLY BAMBOO FLOORING FOR THE COMMUNITY ROOM LOCATED AT 11300 ATLANTIC AVENUE." NEW/OLD BUSINESS 22. REVIEW OF BOARD AND COMMISSION MEMBERS Comments: Please find attached the current Board and Commission member list. Currently there are vacancies in the Planning Commission, Youth Commission, and Veteran's Affairs Council that the City Council may wish to fill. Recommendation: Staff recommends that the City Council review the list of Board and Commission members. After review, the Council may wish to provide staff with direction in filling the current recently advertised vacancies. The City Council may further make any other adjustments to these Boards and Commissions, as it deems appropriate, in accordance with the rules outlined below and the Maddy Act. 23. JULY 4TH CELEBRATION Coma rents: The City of L~mwood annually conducts an event to commemorate the July 4°i I loliday at Lynwood City Park. Key components of the event include a fireworks display, entertainment, a carnival, and vendor's booths. Staff is seeking Council approval for the 2009 4'h of July celebration and asking City Council to approve the expenditure of 2009- 2010 funds during fiscal year 2008-2009 to accommodate purchases for the celebration that must occur in advance of the event. Recommendation: Staff recommends that the City Council provide any input to staff relative to the contents of the 2009 July 4`" Program and then: Approve the acquisition of a vendor to provide the pyrotechnic display using the informal bid process via the adoption of the attached resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD AUTHORIZING THE SOLICITATION OF VENDORS TO ACQUIRE A PYROTECHNICIAN TO PROVIDE A FIREWORKS DISPLAY FOR THE 4°i OF JULY CELEBRATION THROUGH THE INFORMAL BID PROCESS". 2. Authorize the expenditure of funds during the 2008-2009 fiscal year from the 2009-2010 fiscal budget in order to facilitate purchases that must be completed in advance of the 4`" of July event via the adoption of the attached resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD AUTHORIZING THE EXPENDITURE OF FUNDS FROM THE 2009-2010 FISCAL BUDGET DURING THE 2008-2009 FISCAL PERIOD". CITY COUNCIL ORAL AND WRITTEN COMMUNICATION MARIA T. SANTILLAN, MAYOR AIDE CASTRO, MAYOR PRO-TEM ALFREDO FLORES, COUNCILMEMBER JIM MORTON, COUNCILMEMBER RAMON RODRIGUEZ, COUNCILMEMBER CLOSED SESSION 24. CLOSED SESSION ITEMS A. With respect to every item of business to be discussed in closed session pursuant to Section 54956.9: CONFERENCE WITH LEGAL COUNSEL-ANTICIPATED LITIGATION Initiation of litigation pursuant to subdivision (c) of Section 54956.9: One Case B. lNith respect to every item of business i~o be discussed in closed session pursuant to Section 54956.9: CONFEHEf~iCE. VVITH I_EGAI_ COUNSEL - E><IS T IIVG LLi IGATION (subdivision (a) of section 5495G.9:) i. Nance of Case: Nabar Enrique Martinez, et al v. City of Lynwood Case No. BC374258 2. Naive of Case: Cox v. City of Lynwood Case No. IC021620, Claim No. 07G520A ADJOURNMENT THE NEXT REGULAR MEETING WILL BE HELD ON JUNE 16, 2009 AT 5:00 P.M. IN THE COUNCIL CHAMBERS OF THE CITY HALL, 11330 BULLIS ROAD, CITY OF LYNWOOD, CALIFORNIA. 10 AGENDA STAFF REPORT DATE: June 2, 2009 TO: Honorable Mayor and Members of the City Council APPROVED BY: Roger L. Haley, City Manag~t~~ PREPARED BY: G. Daniel Ojeda, P.E., Director of Public ory Engineer Josef Kekula, Civil Engineering Associate SUBJECT: Lynwood Landscape Maintenance Assessment District, FY 2009-2010 Recommendation: Staff recommends that the City Council hold a public hearing to: 1. Set the assessment rate for the Landscape Maintenance Assessment District at $1.90 per front footage for residential and commercial properties (Same as FY 97-98 through FY 08-09 rates); and 2. Adopt the attached resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD ORDERING THE LEVY OF ANNUAL ASSESSMENTS FOR THE EXISTING LYNWOOD LANDSCAPE MAINTENANCE ASSESSMENT DISTRICT FOR FISCAL YEAR 2009-2010". Background: On May 6, 2009, the City Council approved the Engineer's Report, and further proceeded to give notice of the time and place for a public hearing on all matters relating to said assessment district and the proposed assessment rates. Although the assessment rates may remain the same, an annual hearing is required to re-establish the district. The notice of public hearing was advertised in the Lynwood Press on May 14, 2009. Discussion & Analysis: The estimated cost for providing citywide landscape maintenance and the annual installment for the bond issues for next fiscal year is $1,678,980. With the estimated carryover deficit from FY 2008-09 of $1,112,695 and the estimated revenue using t eA~[ same assessment rate of $1.90 per front footage as in FY 2008-09, the Districts ~ projected to carry a deficit of $1,679,218 by tl7e end of FY 2009-10. Tlie cost of an average 50 foot lot wouid amor?nt to $95. The assessment rate will remain the same for this fiscal year. Fiscal impact: The District has been operating at an annual shortfall for about the last 12 years. At this time, the assessment rates for the City's Landscape Assessment District will remain the same at $1.90/ft residential and commercial. Rates would have to be set at $5.33/ft for residential and commercial (3-year recovery plan) for annual assessment revenue to fully cover annual costs. Since the annual shortfalls place demands upon the General Fund, Council may wish to consider raising rates gradually over a three year period in order to cover the annual operating costs. Staff would recommend in that case that the existing carryover deficit be carried on the books, rather than attempt to repay it. The current Fiscal Year 2008-2009 ending deficit is estimated at $499,759; which will require another "loan" from the General Fund to cover the cost. The Fiscal Year 2009-2010 ending deficit is estimated at $566,523 and staff will need to include a "loan" from the General Fund of that amount in the proposed FY 09-10 budget in order to present a balanced budget to the City Council. Coordinated With: City Attorney's Office City Clerk's Office City Manager's Office Finance Department/ACM - A&C z RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD ORDERING THE LEVY OF ANNUAL ASSESSMENTS FOR THE EXISTING LYNWOOD LANDSCAPE MAINTENANCE ASSESSMENT DISTRICT FOR FISCAL YEAR 2009- 2010 WHEREAS, the City Council of the City of Lynwood did on the 20t" day of January, 2009, adopt its Resolution No. 2009-007 proposing the levy of the annual assessments for the Lynwood Landscape Maintenance Assessment District (the "District") and directing the City Engineer to prepare a report in connection therewith; and WHEREAS, the City Engineer did on the 6t" day of May, 2009, submit a report in relation to said District pursuant to the provisions of the "Landscaping and Lighting Act of 1972" (Part 2 of Division 15 of the Streets and Highways Code of the State of California) (the "Act"); and WHEREAS, the City Council did on the 6t" day of May, 2009, adopt Resolution No. 2009-078 approving the Engineer's Report herein mentioned; and WHEREAS, the City Council did on the 6t" day of May, 2009, adopt Resolution No. 2009-079 fixing the time and place for a hearing on the matter of said District: and WHEREAS, evidence has been received as to the publication of notice of said hearing in the time, form and manner required by law. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES HEREBY FIND, PROCLAIM, ORDER, AND RESOLVE AS FOLLOWS: Section 1. Each and all of the recitals set forth herein above are true and correct. Section 2. Following notice duly given, the City Council has held a full and fair public hearing regarding its Resolution No. 2009-079, the Engineer's report prepared in connection therewith, and the levy and collection of the proposed assessment against lots and parcels of land within the District for fiscal year 2009-2010 to pay for the costs and expenses for the improvements described in Section 5 below pursuant to the terms and provisions of the Act. All interested persons were afforded the opportunity to hear and be heard. The City Council has considered all oral and written statements, protests and communications made or filed by interested persons. Section 3. Based upon its review of the Engineer's Report and other reports and information, the City Council hereby finds and determines that (i) the lands within the District will be benefited by the improvements described in Section 5 below, (ii) the District includes all of the lands so benefited, and (iii) the net amount to be assessed 3 upon ttre lands within the L)istrirt far the 2009-2010 fiscal year in accordance with the E=ngineer's Report is apportioned by a formula and method which fairly distributes the nef amount among ali assessable lots and parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements. All protests and objections to the levy and collection of the proposed assessment for the fiscal year commencing on July 1, 2009 and ending on June 30, 2010 are hereby overruled by the City Council. Section 4. The diagram and assessment in the Engineer's Report, as modified, as presented to 'the City Council and on file in the office of the City Clerk are hereby confirmed as filed. Section 5. The City Council hereby orders the proposed improvements to be made as described in the Engineer's Report, which improvements shall be performed pursuant to law, and which are briefly described as follows: The installation, maintenance and servicing of existing and previously proposed landscaping and appurtenant facilities within parks and landscaped areas within public rights-of-way and City owned properties in the City of Lynwood. Such improvements include the maintenance and operation of sidewalks, streets, and water, flood control and drainage systems, specifically the maintenance and operation of landscaping and appurtenant facilities in and along streets and sidewalks, the maintenance and operation of parks, including appurtenant facilities, which serve as natural retention and drainage systems as required by the area's Master Storm Drain Plan, and the maintenance and operation of landscaped areas adjacent to and previously proposed water well sites; and the installation of previously proposed landscaping and appurtenant facilities within parks and landscaped areas within public rights-of-way and City-owned property in the City which have been paid or are to be paid from the proceeds of revenue bonds. Section 6. The assessment is in compliance with provisions of the Act, and the City Council has complied with all laws pertaining to the levy of an annual assessment pursuant to the Act. Section 7. The assessment is levied for the purpose of paying the costs and expenses of the improvements described in Section 5 above during fiscal year 2009- 2010. Section 8. The County Auditor of Los Angeles County shall enter on the County Assessments Roll opposite each lot or parcel of land the amount of the assessment and such assessments shall then be collected at the same time and in the same manner as the County taxes are collected. After collection by the County, the net amount of the assessments, after deduction of any compensation due the County for collection, shall be paid to the City Treasurer. a section 9. 17ublic property ownc-d by any public agency and in use in the pe~~Fomiance of a public functian and which is included within the District shall not be subject to assessments pursuant to the Act far any of the casts and expenses of any of the improvements. Section 10. The City Treasurer shall deposit all monies representing assessments coliecfied by the County to the credit of a special fund for the District and such monies shall be expended only for the improvements described in Section 5 above. Section 11. The adoption of this Resolution constitutes the levy of an assessment for the fiscal year commencing July 1, 2009 and ending June 30, 2010. Section 12. A certified copy of the diagram and assessment shall be filed in the office of the City Engineer, with a duplicate copy on file in the office of the City Clerk and open for public inspection. Section 13. The Lynwood Landscape Maintenance Assessment for fiscal year 2009-2010 shall be $1.90 per foot of front footage for residentially and commercially zoned properties. Section 14. The City Clerk is hereby authorized and directed to forthwith file a certified copy of said diagram and assessment with the County Auditor, together with a certified copy of this Resolution. Section 15. This resolution shall take effect immediately upon its adoption. Section 16. The City Clerk shall certify as to the adoption of this Resolution. PASSED, APPROVED and ADOPTED this 2"d day of June, 2009. Maria T. Santillan Mayor s ATTG,~ A . Maria Quinonez City Clerk APPROVED AS TO FORM Fred Galante City Attorney Roger L. Haley City Manager APPROVED AS TO CONTENT: G. Daniel Ojeda, P.E. Director of Public Works /City Engineer STATE OF CALM=ORI~iA } COUNTY OF LOS ANGELES } I, the undersigned, City Clerk of the City of Lynwood, do hereby certify that the above and foregoing resolution was duly adopted by the City Council of the City of Lynwood at a regular meeting held in the City Hall of said City on the day of ,and passed by the following vote: AYES: NOES: ABSENT: City Clerk, City of Lynwood STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) I, the undersigned City Clerk of the City of Lynwood, and Clerk of the City Council of said City, do hereby certify that the above and forgoing is a full, true and correct copy of Resolution No. on file in my office and that said resolution was adopted on the date and by the vote therein stated. Dated this day of , City Clerk, City of Lynwood AGENDA STAFF REPORT DATE: June 2, 2009 TO: Honorable Mayor and Members of the City Council APPROVED BY: Roger L. Haley, City Manag PREPARED BY: G. Daniel Ojeda, P.E., Director of Public Works/City Engineer Josef Kekula, Civil Engineering Associate SUBJECT: Lynwood Lighting Assessment District, FY 2009-2010 Recommendation: StafF recommends that the City Council hold a public hearing to: Set the assessment rates for the Lynwood Lighting Assessment District at $1.62 per front footage for residential properties and $3.01 per front footage for commercial properties (Same as FY 97-98 through FY 08-09 rates); and 2. Adopt the attached entitled resolution: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD ORDERING THE LEVY OF ANNUAL ASSESSMENTS FOR THE EXISTING LYNWOOD LIGHTING ASSESSMENT DISTRICT FOR FISCAL YEAR 2009-2010". Background: On May 6, 2009, the City Council approved the Engineer's Report, and further proceeded to give notice of the time and place for a public hearing on all matters relating to said assessment district and the proposed assessment rates. Although the assessment rates may remain the same, an annual hearing is required to re-establish the district. The notice of public hearing was advertised in the Lynwood Press on May 14, 2009. Discussion & Analysis: The estimated cost for providing citywide street lighting maintenance and the annual installment for the bond issues for next fiscal year is $1,287,855. With the estimated carryover deficit from FY 2008-09 of $882,130 and the estimated revenue of $1,076,670 using the same assessment rate of $1.62 per front footage for residential and $3.01 per front footage of commercial lots as in FY 2008-09, the District's projected accumulate~f ITEM "carryover" deficit is $1,093,315 at the end of FY 2009-10. Since all City funds must be balanced, the $1,093,315 carryover deficit represents money "loaned" by the General Fund to the Lighting Assessment District. The cost of an average 50 foot residential lot would amount to $81. The assessment rate will remain the same this year. Fiscal Impact: The District has been operating at an annual shortfall for about the last 10 years. At this time, the assessment rates for the City's Lighting Assessment District will remain the same at $1.62/ft residential and $3.01/ft commercial. Rates would have to be set at $3.31/ft for residential and $6.14/ft for commercial (3-year recovery plan) for annual assessment revenue to fully cover annual costs. Since the annual shortfalls place demands upon the General Fund, Council may wish to consider raising rates gradually over a three year period in order to cover the annual operating costs. Staff would recommend in that case that the existing carryover deficit be carried on the books, rather than attempt to repay it. The current Fiscal Year 2008-2009 ending deficit is estimated at $162,880 which will be covered by reducing expenditures during the year; however, some amount of General Fund support may be required. The Fiscal Year 2009-2010 ending deficit is estimated at $211,185; staff will need to budget a "loan" from the General Fund of this amount in order to present the City Council with a balanced proposed FY 09-10 budget. Coordinated With: City Attorney's Office City Clerk's Office City Manager's Office Finance Department/ACM - A&C 2 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD ORDERING THE LEVY OF ANNUAL ASSESSMENTS FOR THE EXISTING LYNWOOD LIGHTING ASSESSMENT DISTRICT FOR FISCAL YEAR 2009-2010 WHEREAS, the Cify Council of the City of Lynwood on the 20th day of January 2009, adopted Resolution No. 2009-008 proposing the levy of the annual assessments for the Lynwood Lighting Assessment District (the "District") and directing the City Engineer to prepare a report in connection therewith; and WHEREAS, the City Engineer did on the 6th day of May, 2009 submit a report in relation to said District pursuant to the provisions of the "Landscaping and Lighting Act of 1972" (Part 2 of Division 15 of the Streets and Highways Code of the Sate of California) (the "Act"); and WHEREAS, the City Council did on the 6th day of May, 2009, adopt Resolution No.2009-080 approving the Engineer's Report herein mentioned; and WHEREAS, the City Council did on the 6th day of May, 2009, adopt Resolution No. 2009-081 fixing the time and place for a hearing on the matter of said District; and WHEREAS, evidence has been received as to the publication of notice of said hearing in the time, form and manner required by law. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES HEREBY FIND, PROCLAIM, ORDER, AND RESOLVE AS FOLLOWS: Section 1. Each and all of the recitals set forth above are true and correct, and hereby incorporated and through set out in full here at. Section 2. Following notice duly given, the City Council has held a full and fair public hearing regarding its Resolution No. 2009-081, the Engineer's Report prepared in connection therewith, and the levy and collection of the proposed assessment against lots and parcels of land within the District for fiscal year 2009-2010, to pay for the costs and expenses for the improvements described in Section 5 below pursuant to the terms and provisions of the Act. All interested persons were afforded the opportunity to hear and be heard. The City Council has considered all oral and written statements, protests and communications made or filed by interested persons. All protests and objections to the levy and collection of the proposed assessment for the fiscal year commencing on July 1, 2009 and ending on June 30, 2010 are hereby overruled by the City Council. Section 3. Based upon its review of the Engineer's Report and other reports and information, the City Council hereby finds and determines that (i) the lands within the District will be benefited by the improvements described in Section 5 below, (ii) the District includes all of the lands so benefited, and (iii) the net amount to be assessed 3 upon the lands within the: llistrct fat- the 2000-?_010 fiscal year ire accordance ~.Nith the Engineer's Report is apportioned by a formula and method which fairly distributes the net arnount among ail assessable lots and parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements. Section 4. The diagram and assessment in the Engineer's Report, as presented to the City Council and on file in the office of the City Clerk are hereby confirmed as filed. Section 5. The City Council hereby orders the proposed improvements to be made as described in the Engineer's Report, which improvements shall be performed pursuant to law, and which are briefly described as follows: The installation or construction and maintenance and servicing of existing and previously proposed public lighting facilities and facilities which are appurtenant thereto or which are necessary or convenient for the maintenance or servicing thereof, including but not limited to, electric current, repair of street light standards and fixtures and incidental costs including labor, material and equipment. Such improvements constitute the maintenance and operation of sidewalks, and streets, specifically, the maintenance and operation of existing and previously proposed public lighting facilities located in and along sidewalks and streets, including street lights and traffic signals, and facilities which appurtenant thereto or which are necessary or convenient for the maintenance or operation thereof, including the cost of rent, repair, replacement, rehabilitation, fuel, power, electrical current, care and supervision necessary to properly operate and maintain public lighting facilities and traffic signals located in and along public streets within the city; and the installation and construction of previously proposed public lighting facilities, and facilities which appurtenant thereto or which are necessary or convenient for the maintenance or operation thereof, which have been paid or are to be paid from the proceeds of revenue bonds. Section 6. The assessment is in compliance with provisions of the Act, and the City Council has complied with all laws pertaining to the levy of an annual assessment pursuant to the Act. .- Section 7. The assessment is levied for the purpose of paying the costs and expenses of the improvements described in Section 5 above for the fiscal year 2009- 2010. Section 8. The County Auditor of Los Angeles County shall enter on the County Assessments Roll opposite each lot or parcel of land the amount of the assessment and such assessments shall then be collected at the same time and in the same manner as the County taxes are collected. After collection by the County, the net amount of the assessments, after deduction of any compensation due the County for collection, shall be paid to the City Treasurer. 4 S~c~ecrs~s 9® Pubfic proi~erty owned icy any prrblRr, agency and in use in the performance of a public function and which is included within the District shall not be subject to assessments pursuant to the Act for any of the costs and expenses of any of the improvements. Section 10. The City Treasurer sha(I deposit all monies representing assessments collected by the County to the credit of a special fund for the District and such monies shall be expended only for the improvements described in Section 5 above. Section 11. The adoption of this Resolution constitutes the levy of an assessment for the fiscal year commencing July 1, 2009 and ending June 30, 2010. Section 12. A certified copy of the diagram and assessment shall be filed in the office of the City Engineer, with a duplicate copy on file in the office of the City Clerk and open for public inspection. Section 13. The Lynwood Lighting Assessment for fiscal year 2009-2010 shall be $1.62 and $3.01 per foot of front footage for residentially and commercially zoned properties, respectively. Section 14. The City Clerk is hereby authorized and directed to forthwith file a certified copy of said diagram and assessment with the County Auditor, together with a certified copy of this Resolution. Section 15. This resolution shall take effect immediately upon its adoption. Section 16. The City Clerk shall certify as to the adoption of this Resolution. PASSED, APPROVED and ADOPTED this 2"d day of June, 2009. Maria T. Santillan Mayor 5 ~.TTE~`I_~ Maria Quinonez City Clerk APPROOfE® AS T® FORD: Fred Galante City Attorney Roger L. Haley City Manager APPF20VE® AS TO CONTENT: G. Daniel Ojeda, P.E. Director of Public Works /City Engineer S rATEr OFD CALIFORNIA ) } § COUNTY OF LOS ANGELES ) I, the undersigned, City Clerk of the City of Lynvrood, do hereby certify that the above and foregoing resolution was duty adopted by the City Council of the City of Lynwood at a regular meeting held in the City Ha(I of said City on the day of ,and passed by the following vote: AYES: NOES: ABSENT: City Clerk, City of Lynwood STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) I, the undersigned City Clerk of the City of Lynwood, and Clerk of the City Council of said City, do hereby certify that the above and forgoing is a full, true and correct copy of Resolution No. on file in my office and that said resolution was adopted on the date and by the vote therein stated. Dated this day of , City Clerk, City of Lynwood AGENDA STAFF REPQRT DATE: June 2, 2009 TO: Honorable Mayor and Members of the City Council APPROVED BY: Roger L. Haley, City Manag PREPARED BY: Lorry Hempe, Assistant City Manager SUBJECT: Neighborhood Stabilization Program Application Submittal Public Hearing and Approval of the Application Recommendation: It is hereby recommended that the City Council: 1. Open the public hearing to receive public comment on the application that will allow the City to receive $916,161 in Neighborhood Stabilization Program (NSP) funds from the State of California Department of Housing and Community Development to primarily help stabilize and revitalize communities hard hit by the mortgage crisis; 2. Approve the City's Anti-Displacement and Relocation Plan; 3. Adopt the attached resolution entitled "A RESOLUTION APPROVING AN APPLICATION FOR FUNDING AND THE EXECUTION OF A GRANT AGREEMENT AND ANY AMENDMENTS THERETO FROM THE STATE OF CALIFORNIA NEIGHBORHOOD STABILIZATION PROGRAM (NSP)"; and 4. Authorize the City Manager to enter into a Joint Agreement with the City of Carson, Gardena, and West Covina in order to meet the minimum application threshold of $1 million in order to apply for these funds. Background: On July 30, 2008, the President of the United States signed Title III of Division B of the Housing and Economic Recovery Act of 2008 (HERA) into law. The President's signature approved several new initiatives and substantial reforms to address the nation's current housing situation. HERA appropriates $3.92 billion dollars for emergency assistance for redevelopment of abandoned and foreclosed homes and residential properties, and provides under a rule of construction that, unless HERA states otherwise, the grants are to be considered Community Development Block Grant (CDBG) funds. The grant program under %D fide I!I is commonly referred to as the Neighbarl~cod Stabilization Program (NSP). The Agency responsible for the implementation of the program is the United States Department of Housing and Urban Development. The statute allocated NSP funds to state, county, and local governments. The initial grantee universe was comprised of the 1,201 state, county, and local governments funded in FY 2008 under the regular CDBG formula. However, if a local government received an allocation based on their relative need of less than $2 million, its allocation amount was rolled up into the state government grant. NSP allocations were based on the number and percent of foreclosures, sub prime loans, and loans delinquent or in default. As a result, the City was not eligible to receive a direct NSP allocation from HUD. Instead, the City will need to receive its NSP funds through the State NSP Program. Discussion & Analysis: THE APPLICATION PROCESS On April 30, 2009, the State of California Department of Housing and Community Development (HCD) issued a Notice of Funding Availability (NOFA) detailing the requirements of the program. The City of Lynwood expects to receive $916,161 in NSP funds. In order to receive these funds, the City must submit a Joint Use Agreement with a contiguous City so that the combined allocations under the application equal or exceed $1 million; and submit a complete application package to HCD by June 15, 2009. PARTNERSHIP WITH CONTIGUOUS CITY The State established a minimum threshold of $1,000,000 in order to apply for these funds. Therefore, staff recommends submitting a joint application to the State for the NSP funds with the following cities to achieve the minimum threshold: City of Carson $1,329,065; City of West Covina $802,030; and City of Gardena $ 468,081. Table 1 - Partnerina Cities CITY NSP ALLOCATION Lynwood $916,161 Carson $1,329,065 West Covina $802,030 Gardena $468,081 TOTAL $3,515,337 The City of Carson will serve as the "lead-agency" and will be responsible for administrative and reporting requirements under the NSP program. 2 ANT"I-DISF~LACEMENT AND RELOCATIbN PLAN "rhe State requires all appiicants to submit a written Residential Anti- Displacement and Relocation Assistance Plan for any activities flat could lead to the displacement of occupants whose property is receiving funds from these or other federal funding sources. The plan outlines reasonable steps, which the City will take to minimize displacement and ensure compliance with all applicable federal and state requirements. The City's Anti-Displacement and Relocation Assistance Plan is attached to this report for approval by City Council (Attachment A). NSP USES & ELIGIBLE ACTIVITIES The State NSP provides funds to help stabilize and revitalize communities hard hit by the mortgage crisis. NSP funds may be used for activities that include, but are not limited to the following programs/activities: 1. Financing Mechanisms (i.e. soft-seconds, loan loss reserves and shared equity loans for low- and moderate-income homebuyers) 2. Acquisition 3. Rehabilitation 4. Purchase and Rehabilitation 5. Re-Sale of abandoned or foreclosed upon homes or residential properties 6. Land Banks for homes that have been foreclosed upon 7. Demolition of blighted structures 8. Redevelopment of demolished or vacant properties NSP funds may not be used for foreclosure prevention activities, such as: refinancing mortgages and paying back-taxes; or to allow demolition of structures that are not blighted; or to allow for the purchase of residential properties and homes that have not been abandoned or foreclosed upon. The intent of the Neighborhood Stabilization Program is to provide targeted emergency assistance to state, county, and local governments to acquire and redevelop foreclosed properties that might otherwise become sources of abandonment and blight within their communities. HUD has established aggressive timelines at the federal, state, and local levels for taking action with these new Neighborhood Stabilization funds. The City will be required to encumber the funds for eligible activities within 18 months of award. PROPOSED NSP PRCJEG NSP funds vuifl be used fo support an acquisition, rehabilitation and resale program. This program will Ise limited to assisting individuals and families whose income does not exceed 120 percent of the area median income adjusted for family size. in addition, funds will be targeted to helping those areas in the City hardest hit by foreclosure, abandonment, and bad loans. Attached to this agenda report are a series of maps that will be used to determine the areas of greatest need. They are: 1. Foreclosure Risk Score (Exhibit C) 2. Vacancy and Foreclosure Risk Score (Exhibit D) 3. Mortgages to Start Foreclosure Process or Delinquent in the Past Two Years (Exhibit E) 4. Estimated Addresses to be Vacant 90 Days or Longer (Exhibit F) The City will work with local consultants to implement this program. CITIZEN PARTICIPATION Two public hearings are required under the State NSP Program, one for the Program Design Phase, and a second hearing for approval of the application submittal. The Program Design Phase meeting was held on April 215, 2009. Public notices were published in the Lynwood Press and the Los Angeles Times in both English and Spanish as required by the State. Fiscal Impact: There is no impact to the General Fund. Should the City be awarded NSP funds from the State of California, it will receive $916,161 in Neighborhood Stabilization Program. Coordinated With: Finance Department City Attorney Attachments: Relocation Plan (Exhibit A) Joint Agreement (Exhibit B) Maps (Exhibit C, D, E, F) Resolution (Exhibit G) NSP Application (Exhibit H) 4 RESOLUTION NO. A RESOLUTION APPROVING AN APPLICATION FOR FUNDING AND THE EXECUTION OF A GRANT AGREEMENT AND ANY AMENDMENTS THERETO FROM THE STATE OF CALIFORNIA NEIGHBORHOOD STABILIZATION PROGRAM (NSP) WHEREAS, Congress has allocated $3.92 billion for the Neighborhood Stabilization Program to States and units of local government with the greatest needs based on home foreclosures, homes financed by a subprime mortgage related loan and homes in default or delinquent; and WHEREAS, the goal of the Neighborhood Stabilization Program ("NSP") is to address abandoned and foreclosed properties throughout the United States; and WHEREAS, the State of California received $145 million from the Federal government (HUD) authorized under Title III, Section B, of the Housing and Economic Recovery Act of 2008 (HR 3221); and WHEREAS, the California Department of Housing and Community Development (HCD) created a secondary funding process that will distribute funds to cities based upon joint agreements or to their counties; and WHEREAS, the City of Lynwood is eligible to receive $916,161 if it meets the grant criteria; and WHEREAS, to meet the minimum threshold of $1 million, the City of Lynwood will jointly submit an application with the Cities of Carson, West Covina, and Gardena. The City of Carson has volunteered to be the lead Agency; and WHEREAS, the City Council authorized the Mayor to approve participation in the Neighborhood Stabilization Program and execute all joint agreement(s) with other jurisdictions to meet eligibility requirements on March 3`d, 2009. NOW, THEREFORE, THE LYNWOOD REDEVELOPMENT AGENCY OF THE CITY OF LYNWOOD DOES HEREBY FIND, PROCLAIM, ORDER AND RESOLVE AS FOLLOWS: Section 1: The City Council has reviewed and hereby approves an application (and its contents) for up to $916,616 for the following activities: To acquire and rehabilitate foreclosed single-family homes to be resold or rented to low to moderate income households. The City will acquire and contract with the selected developer(s) in the joint cooperation agreement to rehabilitate and sell the homes to the target population of moderate income households, up to 120 percent of Area Median Income. The program will be performed citywide. If any additional NSF funding becomes available at a lafer date, the City of Lynwood is authorized to apply for, and/ar accept, the maximum an~~ount. Any additional NSP funding will he used in accordance with funding requirements establisiied by the State of California Neighborhood Stabilization Program. Section 2: The City hereby authorizes the City to submit a joint application in collaboration with the Cities of Carson, West Covina and Gardena. Section 3: The City has determined that federal Citizen Participation requirements were met during the development of this application. Section 4: The City Manager is hereby authorized and directed to act on the City's behalf in all matters pertaining to this application. Section 5: If the application is approved, the City Manager or his designee is authorized to enter into and sign the grant agreement, and any subsequent amendments thereto, with the State of California for the purposes of this grant. Section 6: If the application is approved, the City Manager or his designee is authorized to sign Funds Requests and other required reporting forms. Section 7: This resolution shall become effective immediately upon its adoption. PASSED, APPROVED and ADOPTED this 2nd day of June 2009. Maria T. Santillan Mayor ATTEST: Maria Quinonez City Clerk Roger L. Haley City Manager APPROVED AS TO FORM: Fred Galante City Attorney APPROVED AS TO CONTENT: Lorry Hempe Assistant City Manager CITY OF LYNWCD~® HOUSING REHABILI°i~ATION PROGRAM SINGLE FAMILY TEMPdRARY FIELOCAT6~N PLAN The Housing and Community Development Act of 1974, as amended, and the National Affordable Housing Act of 1990, require all grantees of Community Development Block Grant (CDBG) funds /Neighborhood Stabilization Program (NSP) funds to follow a written Residential Anti-displacement and Relocation Assistance Plan (Plan) for any activities which could lead to displacement of occupants whose property is receiving funds from these or other federal funding source. Having been developed in response to both aforesaid federal legislations, this PIal7 is intended to inform the public of the compliance of the City of Lynwood with the requirements of federal regulations 24 CFR 570.606 under state recipient requirements and Section 104(d) of the Housing and Community Development Act of 1974. The Plan will outline reasonable steps, which the City will take to minimize displacement and ensure compliance with all applicable federal and state relocation requirements. The City's governing body has adopted this plan via a formal resolution. This Plan will affect rehabilitation activities funded by the U.S. Department of Housing and Urban Development (HUD) under the following program titles: CDBG, NSP and such other grants as HUD may designate as applicable, which take place with in the City limits. The City of Lynwood will provide permanent relocation benefits to all eligible "displaced" households either owner occupied or rental occupied units which are permanently displaced by the housing rehabilitation program (See Section E below.). In addition, the City will replace all eligible occupied and vacant occupiable low income group dwelling units demolished or converted to a use other than low income group housing as a direct result of rehabilitation activities. This applies to all units assisted with funds provided under the Housing and Community Development Act of 1974, as amended, and as described in the Federal Regulations 24 CFR 570.496(a), Relocation, Displacement and Acquisition: Final Rule dated July 18, 1990 (Section 104(d)) and 49 CFR Part 24, Uniform Relocation Assistance (URA) and Real Property Acquisition Regulations Final Rule and Notice (URA) dated March 2, 1989. ' All City programs/projects will be implemented in ways consistent with the City's commitment to Fair Housing. Participants will not be discriminated against on the basis of race, color, religion, age, ancestry, national origin, sex, familial status, or handicap. The City will provide equal relocation assistance available 1) to each targeted income group household displaced by the demolition or rehabilitation of housing or by the conversion of a targeted income group dwelling to another use as a direct result of assisted activities; and 2) to each separate class of targeted income group persons temporarily relocated as a direct result of activities funded by HUD programs. A. Minimizing Permanent Displacement and Temporary Relocation Resulting from Housing Rehabilitation or Reconstruction Activities: Consistent with the goals and objectives of activities assisted under the Act, the City will take the following steps to minimize the displacement of persons from their homes during housing rehabilitation or reconstruction funded hytiUD programs: 1. Provide proper notices with counseling and referral services to all tenants so that they understand their relocation rights and receive the proper benefits. When necessary assist permanently displaced persons to find alternate housing in the neighborhood. 2. Stage rehabilitation of assisted households to allow owner occupants and/or tenants to remain during minor rehabilitation. 3. Encourage owner investors to temporarily relocate tenants to other available safe and sanitary vacant units on the project site area during the course of rehabilitation or pay expenses on behalf of replaced tenants. 4. Work with area landlords, real estate brokers, and/or hotel/motel managements to locate vacancies for households facing temporary relocation. 5. When necessary, use public funds, such as CDBG Tunds, to pay moving costs and provide relocation/displacement payments to households permanently displaced by assisted activities. B. Lead Based Paint Mitigation Which Causes Temporary Relocation: On September 15, 2000, the Final Rule for Lead Based Paint Hazard Control (LHC) went into effect. Among other things, it requires that federally-funded rehabilitation must use safe work practices so that occupants and workers can be protected from lead hazards. At no time should the tenant-occupant(s) be present in work areas or designated adjacent areas while LHC activities are taking place in any dwelling unit interior, common area, or exterior. As such, occupants may not be allowed to remain in their units during the time that lead-based paint hazards are being created or treated. Once work that causes lead hazards has been completed, and the unit passes clearance, the occupants can return. The tenant-occupants may not reoccupy a work area or adjacent area until post-lead hazard reduction clearance standards have been achieved and verified with laboratory results. The final rule allows for certain exceptions: 1. The work will not disturb lead-based paint, or create dust-lead or soil-lead hazard; or 2. The work is on exterior only and openings are sealed to prevent dust from entering the home, the work area is cleaned after the work is completed, and the residents have alternative lead free entry; or 3. The interior work will be completed in one period of less than 8-daytime hours and the work site is contained to prevent the release of dust into other areas of the home; or 4, The interior work will be completed within live (5) calendar days, the work site is contained to prevent the release of dust, the worksite and areas within 10 feet of the worksite are cleaned at the end of each day to remove any visible dust and debris, and the residents have safe access to kitchen and bath and bedrooms. If temporary relocation benefits are not provided because the City believes that the project meets one of the above criteria, then proper documentation must be provided in the rehabilitation project file to show compliance. It is up to the City to ensure that the owner occupant or tenant in the project does not get impacted by lead paint mitigation efforts. In most cases where lead paint mitigation is taking place, occupants (tenants or owners) will be strongly encouraged to relocate even for just a few days until a final lead clearance can be issued by a certified lead based paint assessor. Occupants who are temporarily relocated because of lead based paint mitigation are entitled to the same relocation benefits as those who are relocated because of substantial rehabilitation or reconstruction activities. C. Temporary Relocation of Owner Occupants: Owner occupants are not allowed to stay in units which are hazardous environments during lead based paint mitigation. When their home is having lead based paint mitigation work done which will not make it safe to live in, then they are eligible for temporary relocation benefits up to $500, which will be provided as a grant. In the same way, a unit requiring substantial rehabilitation (with or without lead based paint mitigation) which will not allow the family to access a bath or kitchen facility, or if the unit is being demolished and reconstructed, then the family will be eligible for temporary relocation benefits up to $500, which will be provided as a grant. In no case shall the grant for temporary relocation exceed $500 for any one owner occupant. Owner occupants will be encouraged to move in with family or friends during the course of rehabilitation, since they are voluntarily participating in the program. The housing rehabilitation loan specialist and/or the rehabilitation construction specialist will complete a temporary relocation benefits form to document that the owner occupant understands that they must relocate during the course of construction and what benefits they wish to be reimbursed for as part of their relocation. D. Temporary Relocation of Residential Tenants: If continued occupancy during rehabilitation is judged to constitute a substantial danger to health and safety of the tenant or the public, or is otherwise undesirable because of the nature of the project, the tenant may be required to relocate temporarily. The program administrator or construction supervisor will make determination of the need for temporary relocation. The temporary relocation period will not exceed 180 days. All conditions of temporary relocation will be reasonable. Any tenant required to relocate temporarily will be helped to find another place to live which is safe, sanitary and of comparable value and they have the first right to move back into the original unit being rehabilitated at the same rent or lower. He or she may move in with family and friends and still receive full or partial temporary assistance based on eligible cost incurred. The housing rehabilitation loan specialist and/or the rehabilitation construction specialist will ensure that each 1:enant accupied rsnit under the program wilt receive a General information Notice (GIN) (as soon as possible after a loam application is received) and the tenant wil! receive a Notice of Non-displacement (after loan approval), and each tenant occupied unit will have a temporary relocation benefits form completed for them. These notices will document that each tenant understands what their relocation rights are, and if they must relocate during the course of construction, that they receive the proper counseling and temporary relocation benefits. A tenant receiving temporary relocation shall receive the following: 1. Increased housing costs (e.g. rent increase, security deposits) and 2. Payment for moving and related expenses, as follows: a. Transportation of the displaced persons and personal property within 50 miles, unless the grantee determines that farther relocation is justified; b. Packing, crating, unpacking, and uncrating of personal property; c. Storage of personal property, not to exceed 12 months, unless the grantee determines that a longer period is necessary; d. Disconnection, dismantling, removing, reassembling, and reinstalling relocated household appliances and other personal property; e. Insurance for the replacement value of personal property in connection with the move and necessary storage; f. The replacement value of property lost, stolen or damaged in the process of moving (not through the fault of the displaced person, his or her agent, or employee) where insurance covering such loss, theft or damage is not reasonably available; g. Reasonable and necessary costs of security deposits required to rent the replacement dwelling; h. Any costs of credit checks required to rent the replacement dwelling; i. Other moving related expenses as the grantee determines to be reasonable and necessary, except the following ineligible expenses: 1) Interest on a loan to cover moving expenses; or 2) Personal injury; or 3) Any legal fee or other cost for preparing a claim for a relocation payment or for representing the claimant before the Grantee; or 4) Costs for storage of personal property on real property already owned or leased by the displaced person before the initiation of negotiations. E. Rehabilitation Activities Reauirina Permanent Displacement: The Ciiy rehabilitation program will not typically trigger permanent displacement and permanent displacement activities fall outside of the scope of this plan. If a case of permanent displacement is encountered, then the staff responsible for the rehabilitation program will consult with City legal counsel to decide if they have the capacity to conduct the permanent displacement activity. If local staff does not have the capacity, then a professional relocation consultant will be hired to do the counseling and benefit determination and implementation. If local staff does wish to do the permanent displacement activity then they will consult and follow the HUD Relocation Handbook 1378. F. Record Keeping and Relocation Disclosures/Notifications: The City will maintain records of occupants of Federally funded rehabilitated, reconstructed or demolished property from the start to completion of the project to demonstrate compliance with section 104(d), URA and applicable program regulations. Each rehabilitation project, which dictates temporary or permanent or replacement activities, will have a project description and documentation of assistance provided. (See sample forms in HUD Relocation Handbook 1378, Chapter 1, Appendix 11, form HUD-40054) Appropriate advisory services will include reasonable advance written notice of (a) the date and approximate duration of the temporary relocation; (b) the address of the suitable, decent, safe, and sanitary dwelling to be made available for the temporary period; (c) the terms and conditions under which the tenant may lease and occupy a suitable, decent, safe, and sanitary dwelling. Notices shall be written in plain, understandable primary language of the persons involved. Persons who are unable to read and understand the notice (e.g. illiterate, foreign language, or impaired vision or other disability) will be provided with appropriate translation/communication. Each notice will indicate the name and telephone number of a person who may be contacted for answers to questions or other needed help. The notices and process below is only for temporary relocation. If permanent relocation is involved then other sets of notice and noticing process and relocation benefits must be applied (See HUD relocation handbook 1378 for those forms and procedures) The Temporary Relocation Advisory Notices to be provided are as follows: 1. General Information Notice: As soon as feasible when an owner investor is applying for Federal financing for rehabilitation, reconstruction, or demolition, the tenant of a housing unit will be mailed or hand delivered a General Information Notice that the project has been proposed and that the tenant will be able to occupy his or her present house upon completion of rehabilitation. The tenant will be informed that the rent after rehabilitation will not exceed current rent or 30 percent of his or her average monthly gross household income. The tenant will be informed that if he or she is required to move temporarily so that the rehabilitation can be completed, suitable housing will be made available and he or she wiE! be reimbursed for ail reasor~able extra expenses. The tenant will be cautioned that he or she wilt not be provided relocation assistance if he or she decides to move for personal reasons. 2. Notice of Non Displacement: As soon as feasible when the rehabilitation application has been approved, the tenant will be informed that they will not be permanently displaced and that they are eligible for temporary relocation benefits because of lead based paint mitigation or substantial rehabilitation, or reconstruction of their unit. The fenant will also again be cautioned not to move for personal reasons during rehabilitation, or risk losing relocation assistance. 3. Disclosure to Occupants of Temporary Relocation Benefits: This form is completed to document that the City/County is following its adopted temporary relocation plan for owner occupants and tenants. 4. Other Relocation/Displacement Notices: The above three notices are required for temporary relocation. If the City/County is attempting to provide permanent displacement benefits then there are a number of other forms which are required. Staff will consult HUD's Relocation Handbook 1378 and ensure that all the proper notices are provided for persons who are permanently displaced as a result of housing rehabilitation activities funded by CDBG or other federal programs. 1~1LAF"F JOINT COOk~ERATiON AGREEMENT THIS AGREEMENT, made and entered into by and amorjg the CITY OF CARSON, a municipal corporation (°'CARSON"), the CITY OF LYNWOOD, a municipal corporation ("Lynwood"), the CITY OF GARDENA, a municipal corporation, the CITY OF WEST COViNA, a municipal corporation ("West Covina'° and, together with Lynwood and Gardena is referred to herein as "PARTICIPATING JURISDICTIONS" WITNESSETH WHEREAS, per the Housing and Economic Recovery Act of 2008, pursuant to Title III of Division B ("HERA"), under the heading Emergency Assistance for Redevelopment of Abandoned and Foreclosed Homes, referred to henceforth as the Neighborhood Stabilization Program (NSP), the U. S. Congress has allocated $3.92 billion for the NSP to States and units of local government with the greatest needs based on three factors: 1) Number and percentage of home foreclosures; 2) Number and percentage of homes financed by a subprime mortgage related loan; and 3) Number and percentage of homes in default or delinquent; WHEREAS, the State of California is anticipated to receive $145 million (13.5 percent) of the $3.92 billion in available NSP funding; WHEREAS, the State of California, as are all NSP grantees, is required to give priority emphasis in targeting NSP funding to those metropolitan areas, metropolitan cities, urban areas, rural areas, low- and moderate-income areas, and other areas with the greatest need based on U.S. Department of Housing and Urban Developments Department's ("HUD") three factors; WHEREAS, in CARSON and PARTICIPATING JURISDICTIONS abandoned and foreclosed homes have had an adverse impact to varying degrees. Specifically, those jurisdictions have been burdened with a correlated rise in blight, vandalism, illegal occupancy, code enforcement violations and declining land values as a result of abandoned and foreclosed homes and the declining housing market; WHEREAS, based on HUD projections, this matter is only forecasted to worsen due to relaxed underwriting standards, in the recent past, for mortgages that are due to have variable interest rates reset in the near future, thus producing an increase in mortgage defaults and eventual foreclosures; and WHEREAS, pursuant to the guidelines and requirements for obtaining and implementing NSP funding (the "NSP Guidelines') provided by the California Department of Housing and Community Development ("HCD"), the NSP application threshold is $1,000,000 and if a potential individual recipient is eligible for an allocation 01007/0005/67518.03 of less than $1,000,000 from NSP funding; then that recipieni can combine vdith otl7er patenfiai recipients in the same C;ourity so ti~eir joint allacation would exceed that $1,000,000 threshold; WHEREAS, CARSON is eligible for an allocation of $1,329,065 from NSP funding, Lynwood is eligible for an allocation of $916,161, Gardena is eligible for an allocation of $802,030 and West Covina is eligible for an allocation of $468,081 of NSP funding and each is eligible under Tier 1 or 2 (the "NSP Grants"); and WHEREAS, CARSON and PARTICIPATING JURISDICTIONS are located within Los Angeles County; WHEREAS, CARSON and PARTICIPATING JURISDICTIONS desire to coordinate the receipt of the NSP funding to which each is eligible to ensure each receives their allocation for use as provided in the NSP Guidelines and to provide for CARSON as the lead agency to implement the NSP Grants and is permitted to do so pursuant to a joint agreement; WHEREAS, CARSON and PARTICIPATING JURISDICTIONS have each held two public hearings prior to adoption of this Agreement; and WHEREAS, on 2009, the City Council of CARSON authorized and approved this Agreement, on 2009, the City Council of Lynwood authorized and approved this Agreement, on June 2, 2009, the City Council of Gardena authorized and approved this Agreement, and on 2009, the City Council of West Covina authorized and approved this Agreement. NOW, THEREFORE, in consideration of the mutual benefits to be derived by CARSON and PARTICIPATING JURISDICTIONS and of the promises herein contained, it is hereby agreed as follows: 1. Lead Agency: CARSON is hereby designated as the lead entity for purposes of this Agreement, the application for NSP Grants, administration and implementation of NSP Grants and, as required by the NSP Guidelines, and shall be the direct grant recipient for the NSP Grants. CARSON shall administer and implement the portion of the NSP Grants related to PARTICIPATING JURISDICTIONS and, as such, PARTICIPATING JURISDICTIONS hereby appoint CARSON as administrator and agent for PARTICIPATING JURISDICTIONS with respect to such NSP Grants of each PARTICIPATING JURISDICTIONS, as permitted and approved by governing bodies of PARTICIPATING JURISDICTIONS. 2. Grant Application. CARSON will complete and execute the State's NSP grant agreement by way of a joint application to be accompanied by an executed copy of this Agreement. All parties hereby agree to provide to CARSON in a timely manner any and all information related to their jurisdiction that is necessary to complete the joint application. 2 3. Responsibilities of Carson: Consistent with HUD regulations and rules, Carson assumes responsibility for administering and implementing the NSP Granfs an behalf of both CARSON and PARTICIPATII'JG JURISDICTIONS in compliance with applicable program requirements and the law, including but not limited to compliance with program income and rent affordability after close out of the NSP Grant. PARTICIPATING JURISDICTIONS hereby delegate to the extent required under the NSP program the authority to CARSON to undertake such activities. In such connection, the parties agree as follows: a. Carson shall be responsible for administering and implementing the NSP Grants and activities in accordance with NSP Guidelines. CARSON shall retain the NSP Grants and shall apply them in accordance with this Agreement, any subrecipient agreement, if any, the NSP requirements and any agreement entered into with the State of California relating to the NSP Grants. b. Carson shall use diligent efforts to expend NSP Grants related to PARTICIPATING JURISDICTIONS on NSP activities in accordance with NSP Guidelines; provided, however that CARSON shall not incur any liability to the extent it is unable or fails to expend all or part of the NSP Grants related to PARTICIPATING JURISDICTIONS. c. Each party has designated a Program Administrator under Section 10 hereof, which person shall be the contact person for CARSON'S Program Administrator to coordinate with from each PARTICIPATING JURISDICTION in carrying out its duties hereunder. CARSON, as the lead agency, shall be entitled to rely on the decisions of the Program Administrator of each PARTICIPATING JURISDICTION. d. CARSON shall acquire, rehabilitate and resell foreclosed homes and undertake such other permitted activities and work under the NSP Guidelines and requirements within CARSON and PARTICIPATING JURISDICTIONS pursuant to the application filed with the State. Carson shall obtain all required approvals and permits for the work as requested by the Program Administrator for the applicable PARTICIPATING JURISDICTION. e. CARSON shall monitor compliance with the NSP requirements and may request information from PARTICIPATING JURISDICTIONS as necessary to effectuate its responsibilities under the NSP Grants. f. CARSON may engage the services of qualified consultants to assist with any portion of the administration. The selection of a consultant will follow the normal solicitation, hiring andlor bidding procedures of the City of Carson. 4. Responsibilities of all Parties. CARSON and PARTICIPATING JURISDICTIONS agree: 3 a. Ta comply with the State of California NSP Guidelines, IiUD regulations and HERA. b. To undertake or assist in undertaking activities which further the redevelopment of abandoned and foreclosed homes and residential properties, principally for persons of low and moderate income activities that may include: (i) Establishment of financing mechanisms for the purchase and redevelopment of foreclosed upon homes and residential properties, including such mechanisms as soft seconds, loan loss reserves, and shared-equity loans for low and moderate-income homebuyers; (ii) Purchase and rehabilitation of homes to sell, rent or redevelop, (iii) Establishment of land banks for homes that have been foreclosed upon; (iv) Demolition of blighted structures; or (iv) Redevelopment of demolished or vacant properties, funded from NSP Grants and from any program income generated from the expenditure of such funds. c. To undertake appropriate State and/or Federal environmental review with respect to use of NSP Grants for projects, including the National Environmental Protection Act ("NEPA") and/or the California Environmental Quality Act ("CEQA"). For each project assisted with NSP Funds, the jurisdiction where the funds are to be used shall be designated as the lead entity for compliance purposes with NEPA and CEQA, unless otherwise designated by the Program Administrators for the applicable PARTICIPATING JURISDICTION and CARSON. d. To provide for citizen participation where appropriate and as required by the NSP Guidelines and/or the U.S. Department of Housing and Urban Development in their respective jurisdictions, including public noticing and public hearings as permitted by HCD. e. To account for and provide appropriate records relating to approval and use of funds pursuant to NSP Guidelines, HUD regulations and HERA. f. To only use the NSP Grants for the benefit of low, moderate and middle income individuals and families pursuant to NSP Guidelines and HUD regulations. g. Each party is obligated to take all actions necessary to assure compliance with the certification required by section 104(b) of Title I of the Housing and Community Development Act of 1974, as amended, including Title VI of the Civil Rights Act of 1964, the Fair Housing Act, section 109 of Title I of the Housing and Community Development Act of 1974, and other applicable laws. h. Each party is prohibited from using any portion of the NSP Grant for any activity in, or in support of, any action or program that does not affirmatively further fair housing within its own jurisdictions or any of the jurisdictions or that impedes CARSON'S actions to comply with its fair housing certification. 4 i. To enter into subrecipient agreements as required by NSP Guidelines, if necessary. j. Each pasty agrees to comply with all Federal, State and local laws, ordinances, rules and regulations governing NSP. 5. Proqram Costs. a. Pursuant to NSP Guidelines, Carson and PARTICIPATING JURISDICTIONS are entitled to five percent (5%) of their funding allocations for grant administration. PARTICIPATING JURISDICTIONS hereby agree to pay to CARSON five percent (5%) of the amount of their allocations for its administration of the NSP Grants. b. Pursuant to the NSP Guidelines, Carson shall retain any delivery costs associated with the delivery of an activity in CARSON and PARTICIPATING JURISDICTIONS up to the maximum amount permitted by NSP Guidelines. 6. Proqram Income. Subject to Section 5 hereof, program income received from NSP Grants shall be applied pursuant to the NSP Guidelines, including as follows: a. The NSP Grants' income shall belong to CARSON'S NSP, regardless of which party received the NSP Grant allocation. b. Funds received from NSP activities from the use of NSP Grants shall be returned to CARSON and belong to CARSON's NSP even if generated from activities within or by a cooperating PARTICIPATING JURISDICTION. c. The program income may be used only for eligible activities in accordance with NSP Guidelines and the application to the State. d. Any program income received on or after July 30, 2013 or any other date promulgated by the State for return of unused, unobligated or remaining funds shall be returned to CARSON and CARSON shall return those funds to the State Department of Housing and Urban Development pursuant to the NSP Guidelines. 7. Reouired Authorization and Policies a. Attached to this Agreement as Exhibits A is a letter signed by CARSON'S city attorney opining the terms and provisions of this Agreement are fully authorized under State of California and local law and the person signing this Agreement has authority to do so on behalf of CARSON. b. Attached to this Agreement as Exhibits B are letters signed by the city attorney of each of the PARTICIPATING JURISDICTIONS. opining the terms and provisions of this Agreement are fully authorized under State of California 5 and local law and the person signing tl~is Agreement has authority fo do sc on behalf of such PARTICIPATING JURISDICTION. c. Each party hereto has adopted and is enforcing: i. A policy prohibiting the use of excessive force by law enforcement agencies within its jurisdiction against any individuals engaged in non-violent civil rights demonstrations; and ii. A policy of enforcing applicable State and local laws against physically barring entrance to or exit from a facility or location, which is the subject of such non-violent civil rights demonstrations within jurisdictions. 8. Additional Compliance. The parties hereto agree as follows. a. This Agreement shall remain in effect until the NSP Grant funds and program income received are expended and the funded activities completed. b. This Agreement cannot be terminated and neither CARSON nor PARTICIPATING JURISDICTIONS and no party may withdraw from it while it remains in effect. c. None of the parties hereto has authority to veto or otherwise restrict obstruct the implementation of the approved State NSP application during the period covered by either party's NSP agreement with the State. d. Pursuant to 24 CFR 570.501(b), each party is subject to the same requirements applicable to subrecipients, including the requirement of a written agreement as described in 24 CFR 570.503. 9. Amendment. This Agreement may be amended or modified only by mutual written consent of PARTICIPATING JURISDICTIONS and CARSON and only if such amendment and modification is consistent with the requirements of the NSP. Modifications clarifying NSP program requirements may be entered into by the Program Administrators of CARSON and each PARTICIPATING JURISDICTION without the requirement of action of the applicable city council on the modification. 10. Notices and Program Administrator. Any correspondence, communication, or contact concerning this Agreement shall be directed to the Program Administrator at each party at following addresses: 6 LYNWOOD Lorry Hempe, Program Administrator City of Lynwood 11330 Bullis Rd. Lynwood, CA 90262 Phone: (310) 603-0220 Ext. 500 Email: Lhempe@lynwood.ca.us WEST COVINA City of CA GARDENA City of ,CA CARSON: Program Administrator City of Carson 701 E. Carson St. Carson, CA 90745 Program Administrator Program Administrator 11. Indemnification. CARSON and PARTICIPATING JURISDICTIONS agree as follows: a. CARSON and its officers or employees or agents shall not be responsible for any damage or liability occurring by reason of any acts or omissions on the part of PARTICIPATING JURISDICTIONS or each of their officers or employees or Agents under or in connection with this Agreement. It is also understood and agreed, pursuant to Government Code, Section 895.4, PARTICIPATING JURISDICTIONS, and each of them, shall fully indemnify, defend, and hold CARSON harmless from any liability imposed for injury (as defined by Government Code, Section 810.8) occurring by reason of any acts or omissions on the part of PARTICIPATING JURISD-CTIONS under or in 7 connection with any work, authority, or jurisdiction delegated to or determined to be the responsibility of PAiZTIGlPATING JURISDICTIONS under this P.greement. b. PARTIGPATING JURISDICTIONS, with respect to each of their portion of the NSP Grants, and each jurisdictions officers or employees or agents shall not be responsible for any damage or liability occurring by reason of any acts or omissions on the part of CARSON or its officers or employees under or in connection with this Agreement. It is also understood and agreed that, pursuant to Government Code, Section 895.4, CARSON shall fully indemnify, defend, and hold PARTICIPATING JURISDICTIONS harmless from any liability imposed for injury (as defined by Government Code, Section 810.8) occurring by reason of any acts or omissions on the part of CARSON under or in connection with any work, authority, or jurisdiction delegated to or determined to be the responsibility of CARSON under this Agreement. 12. Governing Law. This Agreement shall be governed by the laws of the State of California. 13. Counterparts. This Agreement may be executed in counterparts. DRA>~ l' iN VVITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective officers, duly authorized, by the CITY OF CARSON on , 2009, and by the CITY OF LYNWOOD on JUNE 2Nd, 2009, by the City of on . 2009 and by the City of on , 2009. CITY OF CARSON ATTEST: Helen Kawagoe City Clerk APPROVED AS TO FORM: By: City Attorney By: Jerome G. Groomes City Manager CITY OF LYNWOOD By: Roger Haley, City Manager ATTEST: Maria Quinonez, City Clerk APPROVED AS TO FORM: ey: Fred Galante, City Attorney 0 L007/0005/fi757 R S)3 CETl` OF VU°EST GOV6f~A By: ATTEST: City Clerk APPROVED AS TO FORM: By: City Attorney CITY OF GAF2DENA By: ATTEST: City Clerk APPROVED AS TO FORM: By: City Attorney City Manager City Manager 10 ~: v~ `r t~+ ,~ ca ~"' ~. p .,. u a ~. u c ro ~" {;; .i/ V {ti k `r N :r '; a~~ ~r a 6 ~~ d id ~Q W N ±~ rn itl a ~' G iyy. Si. l1.1 Y AiA 4 iu~yy NRd ~M1Y ~V i~~ .~i Y1 <M1SI d~ ~( `~`w YI `~ ~yVy 4/ ~rv rf ~~Ly~l~'T~~1~ '~ i' 1 '1 ~®1"1111 (N~~) ~~r~i 2009 STATE of cAUFORNiA Department of Housing and Community Development Division of Financial Assistance Neighborhood Stabilization Program 1800 Third Street, Suite 330 Sacramento, CA 95811 Telephone: (916) 552-9398 Fax: (916) 319-8488 Website: http://www.hcd.ca.gov/fa/nsp/index.html ~`~~ 4 ~ ~~ ~~L~~~EJ6~ Arroo6c~ ~chvv~r~e'~egger, Governor Business, Transportation and Housing Agency Dale E. Bonner, Secretary Department of Housing and Community Development Lynn L. Jacobs, Director Division of Financial Assistance Chris Westlake, Deputy Director Community and Economic Development Section Frank Luera, Acting Section Chief Neighborhood Stabilization Program Rita Levy, Program Manager Program Staff Leticia Martinez Charles Ewers Sharon Hoshiyama ® AIYIP®I`~f11tl~ SU®~IT 1 ~~ ~~Tf~aV~ i ~'~BfV~ ° Round 1 -Application Deadline is June 15, 2009 (bv 5 p.m.) Round 1 consist of all Tier 1 and Tier 2 applicants that meet the minimum application threshold of $1 million individually or through a joint agreement. Round 2 -Application Deadline is July 15, 2009 (bv 5 p.m.l Round 2 is available for a county's NSP Application resulting from roll-up funding not applied for by jurisdictions. These applications must also meet the application threshold of $1 million. Note: Funds not applied for by a county, due to inability to meet the $1 million threshold, will be allocated to Tier 3. Applications received by the Department after the applicable deadline will not be accepted and will be returned to the applicant regardless of mailing /postmark date. Sta's:o of idalifornia i~keicJhd~orhood Stabiii~atias~r P~aogram April 21709 T~-BLE ®F C®NTENTS INSTRUCTIONS FOR APPLICATION SUBMITTAL 1 2 3 Contents of Application,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, Timeline ................................................ I-1 ............................... I-2 4. 5. Submitting an Application ..............................................................................................1-3 General Administration and Activity Delivery Percentage Limitations,,,,,,,,,,,,,,,,1-4 Instructions for Completing the Application Table of Contents,,,,,,,,,,,,,,,,,,,,,,,,,,,,,I-5 INSTRUCTIONS FOR THE REQUIRED FORMS AND DOCUMENTS Part A -Application Summary Forms ....................................................................................I-6 Part B -Required Certifications and Documentation,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,;,,,,,,,,,,,I-11 Part C - NSP Activity Detail .......................................................................................................I-13 NSP APPLICATION TABLE OF CONTENTS ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,1-22 PART A -APPLICATION SUMMARY FORMS,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,;,,,,,,,,,,,,,,,,,,,,,,,,,,,,, 1 1. 2. 3. 4. 5. 6. 7. 8. Lead Applicant Authorized Lead Representative Lead Applicant Contact Joint Applicant(s) Applicant Funding and Legislative Representatives NSP Budget Requested NSP Proposed Number of Families/Units Leverage Sources 2009 HERA/NSP T~e~~ ~~ ~~~T~`~~ APP~N®ICFS Appendix A -Cost Categories for NSP Activities ....................................................A-1 Appendix B -The Stale of California's Guidance on Jaint Agreements ..................A-2 for the Neighborhood Stabilization Program Appendix C -NSP Performance Measures ...........................................................A-10 Appendix D -Sample Resolution by the Governing Body .....................................A-11 2009 HERA/NSP 1~ C®N~°ENTS OF APPLICATION The Application is divided into three major sections, as identified beiaw. Application Sections & Content Bart A -Application Summary Forms 1. Lead Applicant 2. Authorized Lead Representative 3. Lead Applicant Contact 4. Joint Applicant(s) 5. Applicant Funding and Legislative Representatives 6. NSP Budget Requested 7. NSP Proposed Number of Families/Units 8. Leverage Sources Part B -Required Certifications and Documentation 1. Resolution by the Governing Body 2. NSP Statement of Assurances 3. Compliance with OMB Circular A-133 4. Residential Anti-Displacement and Relocation Assistance Plan and Checklist 5. Growth Control 6. Citizen Participation 7. Joint Agreement 8. Section 504 Self-Evaluation 9. NEPA Determination of Exemption 2009 HERA/NSP I_1 ~'. P ~- ~ ( ~ { ll: 4 -. 'r ~Insfrucfions fQr'..;Applacaiton Suti6nrl i ~' G .~ x j ,. a f _ Y F 9 + 3, SUBIIAITTING AN APPLICATION A. Important Notes • Original hard copy of the NSP Application must be physically received in the Department by 5 p.m. on the due date. • Late application will not be considered for funding. • Applications received by the due date that do not meet threshold will be considered for funding, but may require expedient revisions in order to meet threshold. • Tele-faxed ore-mail transmitted applications will not be accepted. • The Department reserves the right to request additional information during the application threshold review or as a special condition to the grant agreement. B. Number of Applications Required • One Original and complete set of the entire application and ail attachments (with original signatures in blue ink), and • One copy of the entire application and all attachments C. Application Packaping Place each copy of the application and attachments in an appropriate sized 3-ring, loose-leaf binder; • Place an identifying label on both the cover and spine of the loose-leaf binder; • Clearly label the "original" and the "copy"; • Paginate every page; and • Use tabbed pages or other clearly-marked separating devices to mark attachments -- do not use adhesive stickers orflags--these devices are easily misplaced or lost. D. Before Mailino the Application • Check each set of the application for completeness; • Make sure all the attachments are included; 2009 HERA/NSP , h`i ~ < ~' ~ ~Inst'wucf~o67s''for Applac~tion S,~ulin~ talk} ~ ~' `' ~{ ", ` ` r E ~~ General Administration General administration (GA) includes costs for general grant administration, such as office space and equipment, accounting/fiscal, travel, and program reporting for NSP. See Appendix A for NSP Cost Categories. The Department will allow grantees up to five percent (5%) of their NSP funds for GA. However, jurisdictions are not prohibited from committing additional local administrative contributions, non-NSP resources (leverage), to GA beyond the five percent (5%). Activity Delivery A portion of the Total Activity Budget amount may be committed to activity delivery costs. Activity delivery costs vary, depending on the activity category. The Department has set the following caps for activity delivery expenses: CATEGORY MAXIMUM ALLOWABLE COST Housing Rehabilitation up to 19 percent Public facilities or public improvements up to 8 percent " if complex labor standards are justified up to 12 percent All other activities up to 8 percent Complex labor standards =multiple subcontractors and/or numerous trades 5. INSTRUCTIONS FOR COMPLETING THE APPLICATION TABLE OF CONTENTS The NSP Application Table of Contents found with attached application forms must be completed and submitted with the application. The Table of Contents serves the following purposes: • Provides the order in which-the application must be organized and submitted; and • Sevres as a checklist to ensure that all required documentation is included in the application. 2009 HERA/NSP A_~ If the applicant is in more than one district, list all of the district numbers and appropriate Legislative Representatives' names. The ®epartment will not®fja all legislators of funding decisions. 6. NSP Budget Requested Double-click on the chart in order to open the Microsoft Excel chart with calculating functions. 2009 HERA/iVSP Provide a budget breakdown of all proposed eligible activities under this application. The budget breakdown must clearly identify the different types of activities. For example, the following activities would all be listed separately: For Eligible use B, enter the proposed number of units to benefit from each activity under either single-family or multi-family units. It is anticipated that a single property may benefit from more than one activity under eligible use B (like acquisition, rehabilitation and rental). For the proposed unit figures, count that same property far each respective activity under use B independently. lio Leverage Sources NSP guidelines specifically cite that leverage is not required, but if committed it must be reported and expenditures must be tracked. Although not required, it is recommended that NSP funds are leveraged with other funds to maximize the impact of stabilizing neighborhoods. Any funds committed will be tracked on the quarterly reports to the State, but the expenditure of these funds will not be enforced. In the Leverage Souroes table, list all the NSP activities, use of funds, sources of funds, dollar amount and whether there is a formal commitment of the stated leverage. The Department identifies four categories of other funding sources (leverage): local, rp .vats. State, or Federal financial contributions. Under each section below are some examples of different types of leverage. A. Types of Local. Funding Sources Local Redevelopment Agency (RDA) funds are an acceptable local contribution. In order far these funds to be considered for leverage, the applicant must attach a se grate RDA resolution (original signed in blue ink or cert~ed original). If the applicant is a city and the county in which that city is located makes a contribution to this application, the county funds will be counted as a local contribution (as long as the source of the county contribution is not State or federal funds): In-kind contributions. Jurisdictions may choose to contribute some form of in-kind services. This could be staff time or the value of other administrative services. When using in-kind contributions, applicants should specify the dollar value and indicate if the contributions are for general administration (GA) activities and/or activity delivery (AD) costs. Fee waivers. If the local contribution includes fee waivers, show the cost of the fees being waived on this chart. Infrastructure improvements. If the jurisdiction proposes infrastructure improvements as a local contribution, this work should be related to the proposed NSP activity. 2009 HERA/NSP Submit the completed pages for Part B with all required supporting documentation. Resolution by the Governing Body The NSP Application must include an original resolution citing approval by the governing board to submit an application to the State NSP for funding consideration. Applicants are strongly encouraged to use the checklist in order to ensure that all required items are in compliance. 2. NSP Statement of Assurances A signed NSP Statement of Assurances form must be submitted with application. This document must have an original signature in blue ink by the authorized representative. Compliance with OMB Circular A-133 A signed and completed Compliance with OMB Circular A-133 form must be submitted with the application. In addition, the applicant must submit the Fiscal Year 2006-2007 letter of compliance from the State Controller's Office with their application. 4. Residential Anti-Displacement and Relocation Assistance Plan and Checklist This checklist must be fully completed and submitted with the application. If applicable, a copy of the applicant's approved Residential Anti-Displacement and Relocation Assistance Plan should follow this checklist in the application. If joint applicants have different plans, these must be included as well. 5. Growth Control The applicant must disclose if it has enacted growth control limitations, or not. If yes, additional documentation of the specific controls must be disclosed in the application. 6. Citizen Participation This form must be completed and submitted with the application. See Appendix D for a detailed explanation of citizen participation requirements and sample notices and resolution. 2009 HERAlNSP Note; If more than one NSP activity category is being proposed, submifi a separate set of NSP Activity Detail forms for each category. Use of Funds From the "Use of Funds" activity categories, identify only one category that is being proposed and all applicable eligible uses within that category. Example 1: An applicant jurisdiction that proposes to acquire foreclosed homes, rehabilitate the homes and sell them to qualified homebuyers would check the following: ® Foreclosed Homes/ResidentiaB Properties (check all proposed uses under this category) ® Acquisition ®Rehabilitation ^ Rental ® Sale ®Homebuyer Counseling ^ Homebuyer Assistance Example 2: An applicant jurisdiction that proposes to acquire foreclosed homes, rehabilitate the homes, sell the homes, provide down payment assistance to eligible buyers, and demolish a blighted structure would be required to complete three sets of activity category forms. Under this example, the first set of activity category forms would have the following checked: ® Financing Mechanisms (check all proposed uses under this category) ^ Soft Seconds ^ Mortgage Write-Down ^ Shared Equity Loans ® Down Payment Assistance ^ Loan Loss Reserves ^ Other:, 2009 HERA/NSP I-13 , ~tiY+/ ~ 2 rye Fw ~-c3r~ '£r ~ ~ ~` Instr~cteons tkorthe ~equare~°Form~s'a°hc)~ ®~curnen'~~,~; 4` ` ~. 4 ` xr 'x"45 .y ~r r` x ~. s r 't z ~, ~ ~ ~a ,s c u ~ +. ~ '.6T ~ _ £'.' '`ss x ~` ~~A~~{.` N~I~~C~IYIty,®e B'.~~~- dTMr" ~ t'_ M~ ~ ~ ~ 9~ X~ ~ ~s xxr +SUGrf,~> ~i!3 s Tk yi-N'y(~ j g~, gr =,~m+Y~~.'~~ 3 fttx- ~lfi ~~~,~~,, T~;"~'fl.,~2~.N ~r.~~,~'r ,5 .":~`Z"^~'`. 'I hA~M, x.i a description of how the design of the activity will ensure continued affordability. At a minimum, all properties assisted with NSP funds will be subject to the HOME requirement of continued affordability as outlined in the regulations for the HOME Investment Partnership Program, Final Rule, 24 CFR Part 92. These regulations are available at the following sites: HOME affordability periods-Homeownership §92.254 http://edocket.access.gpo.gov/cfr 2004/aprgtr/pdf/24cfr92.254.pdf HOME affordability rental housing §92.252 http://edocket.access.gpo.gov/cfr 2004/apratr/pdf/24cfr92.252.pdf • Acquisition activities must include a discount rate (at a minimum of 15 percent). • Financing activities must include the range of interest rates. 4. Areas of Greatest Need Indicate the areas that have been determined to have the greatest need for this activity. Be as specific as possible by including census tract/block group, ZIP codes, neighborhood boundaries, etc. The selection of proposed neighborhoods to benefit from NSP funds and those identified as having the greatest need must be explicit. The reasoning from reaching such conclusions must be supportable with available data from the private or public sectors. Counties receiving NSP funds as a result of cities within the county not applying for their NSP allocation amounts must include those cities in their evaluation of the areas of greatest need. Although the counties are not required to expend the NSP funds in these cities, the counties must justify their proposed expenditures. All applicants will be monitored for compliance with the implementation of activities in those areas designated as having the greatest need in their original application requesting NSP funds. 2009 HERA/NSP is.. 4 r a :.,N "Y ~g '~}rRt- ~ r ~1 am<x=, `fir M , ux ~ ~k'~i '~•x e ~ Instrucit on3 for k) airs YForma~. ocumdns,} ..~ e° '` ~ s r PA~T~~C^'` aNJP ~,Ctllrlty ®etall ~' c ~ ~ y~ ~a .L' z; i+- ' ~ i,~ ~`~" _ ~a lfrt 2"" Ys't$ w '~ S t ` T ~. :`4 ~ ws<-`'`o-' # 't ~ 5 ,~ A t: 3 t Y '~ , ~ "~ ^.dr 'tn' r~'~s"~ ..e ~t<`w`9~f sa;+ss`-~. ^. , ' Ti ' _A 1 2-k '~~'ct~n~a a 4 6. Affordability Provisions Describe in as much detail possible how the applicant will ensure continued affordability for NSP-assisted housing activities. Provide a description of the affordability provisions that will be implemented. At a minimum, all properties assisted with NSP funds will be subject to the HOME requirement of continued affordability as outlined in the regulations for the HOME Investment Partnership Program, Final Rule, 24 CFR Part 92. These regulations are available at the following sites: HOME affordability periods-Homeownership §92.254 http://edocket.access.gpo.gov/cfr 2004/aprgtr/pdf/24cfr92.254.pdf HOME affordability rental housing §92,252 htto://edocket.access.gpo.aov/cfr 2004/aprgtr/pdf/24cfr92.252.pdf When mixing funds, the most restrictive affordability requirements will apply. 7. Proposed Number of Beneficiaries by Income Groups Use one of the two charts to identify the proposed number of beneficiaries by income group. Consider the following guidelines in determining which chart to complete: • The first chart is applicable to activities that will provide benefit to low-, moderate-,.and middle-income households (LMMH). Such activities may include housing acquisition, housing rehabilitation, sale of residential housing, rental housing programs, down payment assistance programs, etc. • The second chart is applicable to activities that will provide benefit to: a) areas that have a high concentration (51 percent or greater) of persons that are low-, moderate=, and middle-income (LMMA); or b) individuals that are limited clientele (LMMC). Limited clientele groups include, but are not limited to, homeless, abused children, battered spouses, migrant farm workers, severely disabled adults, seniors (over 65 years old), etc. 2009 HERA/NSP I_97 s ~, ~ _ t ' -fF +~ -.~ i rs '~~ t s_ ~ s' `~~~~l~str~ct ®~n~~sfOr~t eT~®^211~~ ' ®C~ S a~ ~``~5 OUmentS ~ ~ ~ rS Y @ .Zo- -.Y ft a }( 'r ~'a ~a.v ~5"~ sr'Y -c~~ eb't z w ~ ~ ~~ ~ a~ ~ ~~ ~ , ~ ~T~ "'7VSP-~Actovt~®e~~~ $ ~ I tats }~+~r~~R~ui ~ "t P~~'..ts ~i'.z.`vy ~ ".ISe ' ~~ xr s .7~' <„~ ax .. SS..x l ~3.'9?r a.r 5~„~2~ar~. L°i~e'':i~*~^..'~ ~~~..',~4 ~,-~~jY r yw.; r~ ,'~`~r _- 11. Projected Used/Obligated Milestone Chart Provide a completed Used/Obligated Milestone Chart that in brief describes a projected plan for using/obligating NSP funds in a timely manner. Follow instructions as listed oh the chart. While forecasting. projections, keep in mind the rule that 75 percent of the funds must be either used/obligated by December 31, 2009 and 100 percent by March 31, 2010, The term "use" under NSP is synonymous with the term "obligate." As such, in order for a sum of money to be considered obligated it must be committed for a NSP-eligible activity and tied to a s ecific property for use. Funds used/obligated must be tracked by accurate record keeping of the lead agency and reported quarterly to the.State, at a minimum. 12. Projected Expenditure Milestone Chart Provide a completed Expenditure Milestone Chart that in brief describes a projected plan for expending NSP funds in a timely manner. Although all NSP funds must be used/obligated within 12 months of the contract execution date between the Department and HUD, all NSP funds must be expended by September 30, 2011. 13. Environmental Clearance Please check the box for the anticipated level of environmental clearance under the National Environmental Policy Act (NEPA). See ChaoterB of the current manual is available at: htto://www.hcd.ca.gov/fa/cdba/manual/ The Important: In accordance with 24 CFR Part 58, recipients, owners, developers, sponsors or any other third-party partners CANNOT take any physical actions on a site, begin construction, commit, expend, or enter into any legally binding agreements that constitute choice limiting actions for any HUD or non-HUD funds before the environmental review process has been completed and the jurisdiction has received a Release of Funds approval from the California Department of Housing and Community Development. Any violation of the environmental statute of regulations will result in the activity becoming ineligible for NSP or other federal funding. 2009 HERA/NSP t '.. N Instructsdns f®a the Requaed for s aril Docunidn~s~ s Y f ar x". a `y ,s- ,a r i ~` 4~ i Y v fr 1 +~r s~ ~ of f ~A~T c a a~~~~ty Det~' ,~ ~ P ~ ,~ N ,z3 .}yY~ ~ N~ i1'V ,Y ~ ~~I'~l~lt ~a~i# t.f3'k^pi'S~ h4 ,.~. vY'' T ,C/A, "` ENVIRONMENTAL Clearance by State NSP STATUS COMPLETED? (Identify each eligible use and the specific (What has been done up (Yes, No, N/A) environmental clearance activities.) to this point?) 2. Housing. Rehabilitation- Single-Family Categorical Exclusion subject to 58.5 form Form has been prepared and signed. Rehabilitation Environmental Review form This form has been Yes (tiered review) prepared and signed. SHPO Programmatic Agreement Received Yes Publication of Notice of Intent to Request Published in local paper Yes Release of Funds on 2/18/09 for 7 days after publication. Request for Release of Funds Prepared Yes. (signed after comment After Signature period is over). Not all documents listed are required for every activity. The list of required documents is dependent on the proposed NSP activity. b. Special Conditions: Fill in the appropriate status of applicable documentation and indicate whether items are completed or not. c. Other Factors: Fill in the appropriate status of applicable documentation and indicate whether items are completed or not. NOTE: Applicants are required to submit environmental documentation and other special condition documentation to the State NSP under separate cover, only when all items are fully completed. 2009 HERAINSP f_71 "b ~ ~ ~, _ rv B~~~ ~~~~h~at~~.,ll"' ~ _~ r a ~ ~ 7 1 4 r r ~ r Y v# i ~. ~a~) t y 1 r ' " ~' z~ r "~ ~ ~~ r Tali31~ Ofs~i~nBSLS ~ ~+ i "~. ~, a ~ sr i~. s5x ~n a{'~sz m.. X, - Y: z~ ~ ~ `fr ~' ~*~r ~a.~ ~':~ ran ~~~ ~q»b`i '~ ~„r .s ~' ~ ~ Y nr"'~s, fi:~s~ss~~~ _ ,i-.... "s~.:~ 'i` ,~'" .,w~~ ~:~a~~~++~'~4 NOTE: Tl~is will serve as the Table of Contents for the NSP Application. All items listed must be submitted in the order listed. • Enter the page number for each item that is included in the application. • Add additional entries, as needed. n. fi '° R ~ . 1. Lead Applicant Required 2. Authorized Lead Representative Required 3. Lead Applicant Contact Required 4. Joint Applicant(s) If needed 5. Applicant Funding and Legislative Required Representatives 6. NSP Budget Requested Required 7. NSP Proposed Number of Families/Units Required 8. Leverage Sources Required 2009 HERA/NSP For Part C, NSP Activity Detail, provide one Part C, NSP Activity Detail table of contents for each major activity category (e.g., foreclosed homes/residential property, landhanking, demolition, redevelopment, etc.). '1t ~x,M'!l Y .!„~ .~+n. It. T+S }'f ,va,+~~+``+~~~4 K ., ~£~ ~ (~5. ~ ~ ~ ~s/ .>~' ~:n' rj5~~`I~« 3 %aR• ~ P1SP Active#y~ ~ it ~; `' fi~ '~~f5 ~ . t;-. g t4 1''f '~ f ~~ i TY J '~' . , ~.., Activity Category (identify): 1. Use of Funds Required 2. Total Budget for this Activity Required 3. Description of Activity Required 4. Areas of Greatest Need, and Required A map of the proposed target area. 5. Determination of Greatest Need, and • Data sources used to determine areas of Required greatest need. 6. Affordability Provisions Required 7. Proposed Number of Beneficiaries by Income Required Levels 8. Activity Implementation Required 9. Capacity to Implement the Proposed Activity Required 10. Activity Timeline Required 11. Projected Used/Obligated Milestone Chart Required 12. Projected Expenditure Milestone Chart Required 13. Environmental Clearance Required 14. Readiness Required 2009 HERA/NSP Fk~R~ A ~ Appl°ocation Sa~mmary Forms 4. Joini Applicant:, NSP Funding: $ _ Legislative Representatives Informationo District # First Name Last Name Assembly Senate Congress District # First Name Last Name Assembly Senate Congress 5. Joint Applicant: NSP Funding: $ Legislative Representatives Information: District # First Name Last Name Assembly Senate Congress District # First Name Last Name Assembly Senate Congress 2009 HERA/NSP G ~~?rt~~° ~ - R,~rpallc2~tion Su~nrna¢~y Fcrr~ Double-click on the chart below to open Microsoft Excel chart with calculating functions. ~ ~Activ9ty ' ~ Activity Description Total Activity , „~ Activity Activity" Delo~e~`y;: Budget Dol~ars Delivery % Doll~rs ;: ~ ~ , ,e !~ 9 N~~2 ZF(~:. Y J YT t~ ~~~ q` "'h~~ F d~~IQ~ ~ I. S , ~x I ~} ' w ~ ti: fi nyy~ ((J~ Sr ~`` .dflY~~g`~" ).1~ f1 t 33 y~ ~ r+ysr ~ ra ~~ k ~y P *a,l, e ' < @@~~ t~ c+ ~~W .31N.. i EYkI . ~~ ,alrY^J { a#?H M y S ~~~~~~'~ > ~ N f fr ikk i~ ~uuw ~A44e ~( a S ' a• xUM r, t~~Fx, Yr }t~`~~~ q ~ ~ I ~ ~~ti5 zz~~:- - d 'xi S . ~, ~~~ ~O ~~ . ., . xdi . i~1 F Y:. . .:.~ °~`'C ink ~ ~ ~ ~ ~ ~ f ae,.~'J~, 3 da i ~ +F~ a wF*~i. r~ ~ ~ , } } g }JVNf~ ~.. m ~4}I~1~A`~1~~e ~" ~ ` F~" '~ '~ - i ~ a ~i i ~.~ ~~~ ~~ ~ ikM~ PPe:ii. f +n ~N. i ~ r„r M~tt '~;~ ~" ~ X r ' ~ ~ . ; ,~& t n, et ''~ "~. ,~ rs x~ {fie #` ;~'~' o- i ~ ] P5 M~, w A ~~ . , }i i" W~'Lw'{~QtTH ~'}.Y ~~x 'xNAW ~~5 p 5~~.~ ~ , QQ ~ 3v ss~"v f ~~ai~ ~ ~ ~ o ~ 4 ~t n .~Jr s'z T& a ~ ' ~ t'P~ ~'t>u~ ~3~'i~' j~ i ~l11 ,~^ ~`Fitdf~ ~ ~ ix O ~ > ry'e ~~ ~ ~ ' :~ i xma ~~•~ xx ~P ~ ~ r ~"' ` E ~$ GENERAL ADMINISTRATION z $! ~ ~ 4 <`,7 ~, _ ~~ ~. - TOTAL FUNDING REQUESTED ~~ 2009 HERAINSP Q O. " ~`~ - ~:: ~~~ d~~ ~ ~ ~ .y N ~ ~ w ~ ~ ~ Q ~ A ~ .C p V r.+ •~ N N ~ ~ ~ ~ O ' ~+ = 6 L ~ 3 ~ A ~ Q ® fPr O c C +~ ~ 3 ~ O :!: a c ~ ca .~ 'U ~ ~ °~" ; a J ¢n ~ w Q G -~ C ~ O ~ 3 m V1 l6 7 . , LL ~ .-. Q O ~ w. (n O a C N ~ 7 O Q ~ N y N N f6 U ~ C L te v C =a - Y /~ 3 ~Z C V C 'C-. 30 ~ N L ~ C O. ~ ~ G C ~ ~ _ p p ~ i=~ _U ~ /1 U {L f w ~ t0 p O ` 'C U N d ~ f6 ~~a~ 3~ > T ~ N ~ d w N ~ + -~ ~ O R 7 t ~ r0 N U ~ ~ ~ C ~" f6 fQ ~ tl) cNE ~c~ 7 ~p L ~ ~ ~+ N V) ~-. ~ a '~mm ma~ o . ~ cmQ vt ~ aii. Z ~ ~ "' ~ L N L ~ O ® - L d C~ Z W 2 rn 0 0 N rn PART ~ ~ RegraireE.i C~ertifocatio~~s and D®ce~r~~entation The Resolution submitted with this application must: ^ be an original or certified copy of the Resolution; ^ authorize submission of the application; ^ clearly identify all activities in the application; ^ clearly define the specific target area(s) for each activity; ^ identify the commitment of any local cash match or leverage that is proposed for any NSP activities; ^ approve the application's contents (total funding requested, all proposed activities, committed leverage, target areas for each activity, etc.); ^ indicate the approval of the NSP Application's content; ^ authorize acceptance of any additional NSP funding that may become available at a later date and indicate the maximum dollar amount that would be accepted; ^ authorize the execution of a standard agreement (and any amendments thereto) with the Department; ^ designate an official (by title) authorized to sign the NSP Application and enter into an agreement with the Department, if funded; and ^ designate persons (by titles) authorized to sign all reports, including Funds Requests and required NSP reports. (It is recommended that more than one person be authorized). Joint applicants must also adhere to the following: ^ include the authorization for the jurisdictions to submit the joint application and acceptance of the jurisdiction to assume the role of lead agency for the NSP application activities; ^ include an original or certified copy of the Resolution from each joint applicant, authorizing the joint agreement for the NSP funding, and , ^ include a copy of the joint agreement which has been signed by all joint applicants. In addition, a subrecipient agreement must also be executed and submitted with the NSP Application if any joint applicants, other than the lead agency, will have a role in the implementation of any NSP activities. ^ if leverage is committed by RDA, a separate RDA resolution is required. NSP strongly recommends that applicants use the suggested language in the sample Resolution. (See Appendices in this application package.) Include all appropriate Resolutions immediately after this page. 2009 HERA/NSP 90 PAF~T R - Regrairad Certifications and Documentation NSP STATEMENT ®F ASSURANCES The City/County of certifies that: hereby assures and Legal Authoritv It possesses the legal authority to apply for the grant and to execute the proposed Neighborhood Stabilization Program (NSP) activities described in the NSP application in accordance with all applicable regulations. 2. Application Authoritv Its governing body has duly adopted or passed as an official act or resolution, motion, or similar action authorizing the filing of the application, including all understandings and assurances contained therein, and directing and authorizing the applicant's chief executive officer or other designee to act in connection with the application and to provide such additional information as may be required. 3. Citizen Participation It has or will comply with all citizen participation requirements of Sections 24 CFR 91.105 or 91.115, as modified by NSP. Such requirements include, at a minimum, the following components: a. Provides for and encourages citizen participation, with particular emphasis on participation by persons of low-, moderate-, and middle-income who are residents of areas in which NSP funds are proposed to be used, and provides for participation of residents in low-, moderate-, and middle- income neighborhoods as defined by the local jurisdiction; b. Provides citizens with reasonable and timely access to local meetings, information, and records relating to the grantee's proposed use of funds, as required by NSP/CDBG regulations, and relating to the actual use of funds under this title; c. Provides for technical assistance to groups representative of persons of low-, moderate-, and middle-income that request such assistance in developing proposals with the level and type of assistance to be determined by the grantee; d. Provides for public hearings to obtain citizen views and to respond to proposals and questions at all stages of the Neighborhood Stabilization Program. These include at least the development of needs and the review of proposed activities, which hearings shall be held after adequate notice, at times and locations convenient to potential or actual beneficiaries, and with accommodation for the disabled. This shall include one public meeting during the program design and prior to formal amendments. A public hearing shall also be conducted prior to application submittal; 2009 HERA/NSP PAf~T ~ ~ Requia°ed Certifications and Documentation NSP S~~ATENIENT OF ~4SSURANCES a. The plan, ordinance, or measure imposes a moratorium on residential construction, to protect the health and safety, for a specified period of time, which will end when the public health and safety is no longer jeopardized; or b. The plan, ordinance, or measure creates agricultural preserves under Chapter 7 (commencing with Section 51200) of Part 2 of Division 1 of Title 5 of the Government Code; or c. The plan, ordinance, or measure was adopted pursuant to a specific requirement of a State or multi-State board, agency, department, or commission; or d. The applicant has an adopted housing element, which the Department has found to be in compliance, unless a final order has been used by a court in which the court determined that it is not in compliance with Article 10.6 of Chapter 3 of Division 1 of Title 7 of the Government Code; or e. The use of the funds applied for in this application is restricted for housing for the targeted income group. 9. Uniform Administrative Requirements It will comply with the regulations, policies, guidelines; and requirements of OMB Circular Numbers A-87, A-133, A-122, and 24 CFR Part 85, where appropriate, the Housing and Economic Recovery Act of 2008 (HERA) regulations, and the State CDBG regulations. 10. Nondiscrimination It shall comply with the following regarding nondiscrimination: a. Title VI of the Civil Rights Act of 1964 (42 USC 2000d), the Fair Housing Act (42 USC 3601-3619), and implementing regulations. b. Title VIII of the Civil Rights Act of 1968 (Public Law 90-284) as amended; and will administer all programs and activities related to housing and community development in a manner affirmatively furthering fair housing. _ The grantee must conduct an analysis to identify the impediments to fair housing choice within the jurisdiction(s), take appropriate actions to overcome the effects of any impediments identified through that analysis, and maintain records reflecting the analysis and actions in this regard. c. Section 109 of the Housing and Community Development Act of 1974, as amended. Zoos HeR,vNSP 1A PAR`f° B ~ Required Certifications arod Documentation NSP STATEIVIEN`f ®F ASSURANCES 13. Architectural Barriers Act It will comply with the Architectural Barriers Act of 1968 (42 USC 4151) and implementing regulations (24 CFR Part 40-41). 14. Conflict of Interest It will enforce standards of conduct that govern the performance of its officers, employees, and agents engaged in the administration of contracts funded in whole or in part by the NSP/CDBG Program (Section 7120(d) of the State regulations). 15. Limitations on Political Activities It will comply with the Hatch Act (5 USC 1501 et seq.) regarding political activity of employees. 16. Anti-lobbying It will comply with restrictions on lobbying required by 24 CFR part 87, together with disclosure forms, if required by that part. 17. Lead-Based Paint It will comply with the Lead-Based Paint Regulations (24 CFR Part 35, subparts A, B, J, K, and R) which prohibits the use of lead-based paint on projects funded by the program. 18. Federal Debarment and Suspension It will comply with the Federal Debarment and Suspension (24 CFR Part 5) and their principals, or any/all persons, contractors, consultants, businesses, sub- recipients, etc., that are conducting business with the grantee are not presently debarred, proposed for debarment, suspended, declared ineligible, or voluntarily excluded from participation from the covered transaction in any proposal submitted in connection with the covered transaction. Applicants must check the Excluded Parties Listing System at www.epls.gov, print and, maintain evidence of the search results. In the event that the search results indicate a prior or current debarment or suspension of the jurisdiction, include the printout in the application. 19. Assessments It will not attempt to recover any capital costs of public improvements assisted in whole or in part with CDBG funds, including Section 108 loan guaranteed funds, by assessing any amount against properties owned and occupied by persons of low- and moderate-income, including any fee charged or assessment made as a condition of obtaining access to such public improvements. The following exceptions apply: a. If NSP funds are used to pay the proportion of a fee or assessment attributable to the capital costs of public improvements (assisted in part with NSP funds) financed from other revenue sources, an assessment or 2009 HERA/NSP P'AI~T B -- Bequire€1 C~rtificata®ns and D®cumeeatatioe~ Office of Management and Budget (OMB) Circular A-133 is used pursuant to the Single Audit Act of 1984, P.L. 98-502, and the Single Audit Act Amendments of 1996, P.L. 104- 156. It sets forth the standards for obtaining consistency and uniformity among Federal agencies for the audit of states, local governments, and non-profit organizations expending Federal awards. Cities and counties not exempted from the requirements of OMB Circular A-133 must submit their audits to the State Controller. Non-profit organizations not exempted must submit their audits to the California Department of Housing and Community Development. Pursuant to fhe requirements of OMB Circular A-133, please check the appropriate statement below and sign the certification at the bottom of fhe page: ^ The (name of entity) has expended more than $500,000 in Federal funds in fiscal year 2006-2007 and is required to conduct a single audit or program specific audit for this year in accordance with the provisions of OMB Circular A-133. (Check the appropriate statement below.) ^ The audit has been completed and has been submitted to the appropriate control agency. Attached is the acceptance letter from the California State Controller's Office. (Failure to include fhe acceptance letter will result in denial and/or withholding of NSP/CDBG funding.) ^ -The audit has not been completed. It is anticipated that the audit will be completed and submitted to the appropriate control agency by: (date). (NSP funds will not be approved unless compliance is demonstrated in a timely manner.) ^ The (name of entity) has expended less than $500,000 in federal funds in fiscal year 2006-2007 and is exempt from the requirements of OMB Circular A-133. Non-Federal entities that expend less than $500,000 a year in Federal awards are exempt from Federal audit requirements for that year, but records must be available for review or audit by appropriate officials of the Federal agency, pass-through entity, and the General Accounting Office. I certify on behalf of (name of entity) that the above is a true and accurate statement. I understand that failure to comply with yearly Single Audit requirements will result in denial and/or withholding of NSP/CDBG funding. PrintedlTyped Name Signature (Use blue ink) Title Date signed 1@ 2009 HERA/NSP PART ~ m Rert~air~ri ~ertificatiorts and ~a~caamentatt®n Has the applicant enacted limitations on residential construction that are not establishing agricultural preserves, not imposed by another agency, or not based on a health and safety need? ^ Yes. If yes, see note below. ^ No. NOTE: If the applicant has a General Plan, ordinance, or other measure that directly limits by number either the building permits, which may. be issued for residential construction, or buildable lots, which may be developed for residential purposes, and the measure does not meet any of the exceptions found in the Program Regulations, Section 7056 (b)(2)(B), check "Yes" and attach a copy of the measure in this section of the application. 2009 HERA/NSP ~n PART ~ ®Requia~e~9 Cer~asficati®ns arrd fJa~curnentatio~a Por the purposes of the State NSP, a Joint Agreement is required as part of an NSP Application on behalf of another jurisdiction or for joint applications. The Department will accept the following types of joint agreements: 1. City/City Joint Recipients within that same county (i.e., two or more contiguous cities); or 2. City/County Joint Recipients (i.e., a county and one or more eligible cities located within the same county). The Department must accept all executed NSP Joint Agreements. Please refer to Appendix B for guidance on developing joint agreements. If applicable, please ensure that the required documentation is included immediately after this page. 2009 HERA/NSP 27_ PART ~ ~ Required Cea~tifications and ®ocumentation If the proposed activity will include general administration, engineering, architectural, or other related services prior to project implementation, the jurisdiction must prepare a Determination of Exemption before beginning work on any of these services. (Such services are exempt under 24 CFR Part 58.34 of the federal environmental regulations pertaining to NSP recipients). These regulations can be located at hftp //edocket access gpo pov/cfr 2007/aprptr/pdf/24cfr58 34 pdf. Statutes and regulations listed at 24 CFR 58.6 must also be addressed for every exempt activity. The State NSP has adopted HUD's recommended formats for NEPA determinations. Following this page is the NEPA Determination of Exemption for General Administrative activities only. Applicants must complete the document and secure the required signatures. The completed and signed form must be included with this NSP Application For additional exempt activities, please complete separate NEPA Determination of Exemption forms and submit them with this application. Note: Additional environmental review documents will be required after contract execution for other phases of project implementation. 2009 HERA/NSP 7d [~At2T ~' t~eeluired Certifications arse De~ctorraentati®n (3) Is the community participating in the National Flood insurance E'rogram (or has fees than one year passed since FEMA notification of Special Flood Hazards)? ~] Yes. Flood insurance under the National Flood Insurance Program must be obtained and maintained for the economic life of the project in the amount of the Total project cost. A copy of the flood insurance policy declaration must be kept in the Environmental Review Record. ^ No. [Federal assistance may not be used in the Special Flood Hazards Area.] E. COASTAL BARR/ERS RESOURCES ACT (1) Does the project involve any one of the following uses of Federal assistance: - acquisition, construction, repair, improvement or rehabilitation of public facilities; - acquisition, construction, repair, improvement or rehabilitation of residential ornon-residential structures; - flood insurance for new or substantially improved structures; - erosion control or stabilization of inlet, shoreline or inshore areas? ^ No. Cite Source Documentation. The review of this factor is completed. Clear Zones Disclosures. ^ Yes. Continue to question 2. Skip to Section C. Airport Runway Clear Zones and (2) Is the project in an area along the Atlantic Coast, Gulf of Mexico, or Great Lakes? ® No. Cite Source Documentation. There are no Coastal Barrier Resources on the U.S. West Coast. The review of this factor is completed. Skip to Section C. Airport Runway Clear Zones and Clear Zones Disclosures. ^ Yes. Continue to question 3. (3) Is the project located in a coastal barrier resource designated on a FEMA map? ^ No. Cite Source Documentation. The review of this factor is completed. Clear Zones Disclosures. Skip to Section C. Airport Runway Clear Zones and ^ Yes. [Federal assistance may not be used in such an area.] C. AIRPORT RUNWAY CLEAR ZONES AND CLEAR ZONES DISCLOSURES (1) Does the project involve the sale or acquisition of an existing building or property within a Civil Airport's Runway Clear Zone, Approach Protection Zone or a Military Installation's Clear Zone? ^ No. Cite Source Documentation. Project complies with 24 CFR 51.303(a)(3). The review of this factor is completed. ^ Yes. Disclosure statement must be provided to buyer and a copy of the signed disclosure statement must be maintained in this project's Environmental Review Record [24 CFR 51.303(a)(3)]. Preparer Signature Preparer Name Responsible Entity Official's Signature Title Date Date 2009 HERAINSP 7c Part C ~ N5P Activity ®etal C~MPt,Et°~ ®/li~ S~~° ®F ~®i2iV1S ~®t2 tm',~CN ACTII/(T°Y C.4TECaORY. 1. Use of Funds. Please indicate the proposed uses of the requested NSP funds (for this activity). Check only one eligible category and identify all applicable uses within that category. (Please see the NOFA for detailed descriptions and limitations of these uses.} ^ Financing Mechanisms (check all proposed uses under this category) ^ Soft Seconds ^ Down Payment Assistance ^ Mortgage Write-Down ^ Shared Equity Loans ^ Loan Loss Reserves ^ Other: ^ Foreclosed FlomeslResidential Properties (check all proposed uses under this category) ^ Acquisition ^ Rehabilitation ^ Sale ^ Homebuyer Counseling ^ Landbanking (of foreclosed homes) (check all proposed uses under this category) ^ Acquisition ^Landbanking ^ Rental ^ Maintenance ^ Demolition (of structures that are blighted and pose a threat to human health, safety, and public welfare) ^ Redevelopment (of vacant or demolished properties) (check alt proposed uses under this category) ^ Acquisition ^ Redevelopment ^ Rental ^ Sale ^ Other: (describe) ^ New Construction 2009 HERA/NSP o~ Part C - NSP Abti~sity t)etail G. _Affordability Provisions. Please describe how the applicant will ensure continued affordability for NSP- assisted housing activities. 7. Proposed Number of Beneficiaries by Income Levels. Number of Households - (LMMH). This chart is only applicable to activities that specifically benefit households (such as housing acquisition, rehabilitation, sale, housing rental, etc.) that are low-, moderate-, and middle-income. Between Between Between 30% -Below TOTALS 81% - 120% 51% - 80% 31% - 50% (Extremely (Middle (Moderate (Low Income) Low Income) Income) Income) Number of Persons - (LMMA. LMMC). This chart is only applicable to the following: a. activities that provide benefit to specific areas that have a high concentration (51 percent or greater) of persons that are low-, moderate, and middle-income; or b. activities that provide services to limited clientele individuals. Between Between Between 30% -Below TOTALS 81 % -120% 51 % - 80% 31 % - 50% (Extremely (non- (Middle (Moderate (Low Income) Low Income) duplicated Income) Income) counts) 2009 HE~A/NSP 29 Rae`t C®Id~P activity, Det~~l 9. rapacity to Implement the Proposed Activity. Please describe the capacity of each agency/organization that will implement the proposed activity. Indicate capacity level and years of experience for similar successful activities, other similar successful programs that have been implemented, etc. 10. Activity Timeline. Include the anticipated start and end dates of each eligible use as well as the total proposed timeframe for activity implementation. Eligible Use Proposed Proposed Total Timeframe Start Date End Date (in months) 2009 HERA/NSP Q 0 ~. U .~ Q -~. L` 3 O l0 N v O a m w a c m y N :;, .' w U l0 N y O w L a a c Q N ,~ ~ V) O ~ a1~ IV` ,1•`/i W ',~~ Q ._C a~ e_ c ~ m ~ C U .c ~~ yZ w O `~ O ~~ ~ ~ C6 ~ y Q J N N r 0 N O M Q Y Q d .n d C c. x d d N 3 E G v c w a y 2 O G d G O r ~~, f W 2 O O N M M Part.C ®~JSP Actl~ltjr BetaiB 14o Readiness. Please describe the status of applicable readiness factors for each proposed eligible use, which demonstrate the applicant's ability to begin implementation expeditiously. (Please add other factors, as appropriate.) ENVIRONMENTAL Clearance by State NSP (identify each eligible use and fhe specific environmental clearance activities.) STATUS (What has been done up to this point?) COMPLETED? (Yes, No, N/A) 1 2 3 4. 2009 HERA/NSP ~~ ~PP~N~~~~~ Appendix A -Cost Categories for NSP Activities ....................................................A-1 Appendix B -The State of California's Guidance on Joint Agreements ..................A-2 for the Neighborhood Stabilization Program Appendix C -NSP Performance Measures ...........................................................A-10 Appendix D -Sample Resolution by the Governing Body .....................................A-11 2009 HERA/NSP 97 Appendix B THE STATE OF' CALIFORNIA'S GUIDANCE ON JOINT AGREEMENTS FOR THE NEIGHBORHOOD STABILIZATION PROGRAM The State of California's Substantial Amendment to the Annual Plan for the Neighborhood Stabilization Program (NSP) states that units of general local government may create joint agreements in order to reach the minimum dollar threshold established for these program funds. To assist cities and counties interested in this option, the Department of Housing and Community Development (HCD) is providing guidance on the suggested elements of a joint agreement for the purposes of the NSP. This guidance consists of information developed and provided by HUD to the directly funded entitlements, which HCD has modified to meet the State's NSP requirements. The following sections discuss when joint agreements may be applicable and their suggested elements. Jurisdictions May Require a Joint Agreement To Meet the Program Requirements Jurisdictions participating in the State of California's NSP may need to consider a joint agreement with other jurisdictions in at least two instances. In the first instance, jurisdictions may require a joint agreement in order to be eligible to receive an NSP allocation from the State. In its allocation methodology for the NSP, HCD established a minimum threshold of $1 million in order forjurisdictions to receive funds under Tiers 1 or 2. To reach this threshold, jurisdictions eligible to receive an allocation of less than $1 million will need to enter into a joint agreement with contiguous cities and/or their county, providing these jurisdictions are also eligible to receive State NSP funds as listed under Tiers 1 or 2, and their combined allocations meet or exceed the minimum threshold. The second instance in which a jurisdiction may need to enter into a joint agreement is when it has concerns about its capacity to administer the NSP funds. In this instance, HCD encourages the jurisdiction to consider entering into a joint agreement with either its county or other contiguous localities, providing they are eligible for a State NSP allocation. A joint agreement with an entity having a larger allocation, such as a county or large community, may help provide a smaller unit of general local government with the expertise or personnel support needed to carry out the NSP-funded activities. 2009 HERA/NSP ~-appendix Existing cooperation agreements (e.g., IVlemoranda of Understanding and/or Joint Mower Agreements) governing regular GDBG funding between units of general local government or for other purposes will not be acceptable for the State NSP. Certain provisions in existing cooperation agreements that govern 2008 GDBG funding maybe inconsistent with parts of the Housing and Economic Recovery Act of 2008. Requirements for Joint Agreements All cooperation or joint agreements must meet the following standards. HCD will review all joint agreements for compliance with this list. Failure to comply with any of the following elements will result in denial of the joint request: 1. The governing body of the lead entity (applicant) and the governing bodies of all the cooperating units of general local government must authorize the agreement 2. The chief executive officer of the lead entity and the chief executive officer of each unit of general local government must execute the agreement. The agreement must be accompanied by a legal opinion from the lead entity's counsel that the terms and provisions of the agreement are fully authorized under State and local law and that the agreement provides full legal authority for the lead entity. Note: If the lead entity does not have such authority, the legal opinion must state that the participating jurisdiction has the authority to undertake, or assist in undertaking, essential community renewal and lower income housing assistance activities. A mere certification by the lead agency's counsel that the agreement is approved as to form is insufficient and unacceptable. The legal opinion should be a separate document on the letterhead of the attorney. 4. The agreement must state that it covers the State NSP requirements. The agreement must provide that the lead entity is responsible for ensuring that NSP requirements (such as program income or rent affordability) are complied with after grant closeout. 6. The agreement must provide that NSP program income will belong to the lead entity's NSP even if it is generated from activities undertaken within or by a cooperating local jurisdiction. .2009 HERAlNSP c,~i Appendix R 14. The agreement must provide that the participating units of general local government agree to satisfy ail requirements of the National Environmental Policy Act (NEPA) and the California Environmental Quality Act (CEQA), and that for each project assisted with NSP funds, they will designate one of the participating units of general local government as the lead entity for compliance purposes. ADDITI®NAL INFORMATION subrecipient Agreements The execution of joint or cooperation agreements between a lead agency (grantee) and a participating unit of genera! local government that the lead agency serves itself does not satisfy the requirement for a written subrecipient agreement required by HUD regulations at 24 CFR 570.503. Where a participating unit of general local government carries out an eligible NSP-activity funded by the lead grantee, these entities are responsible for executing a written subrecipient agreement with the units of government containing the minimum requirements found at 24 CFR 570.503 before disbursing any NSP funds for any such activity or project. The subrecipient agreement must remain in effect during any period that the unit of local government has control over NSP funds and activities, including program income. The lead agency is to retain documentation in its file of any subrecipient agreement. Alternative Approaches NSP grantees with capacity concerns may also wish to consider another alternative approach should they determine that a joint agreement approach is not feasible in their situation. A locality eligible under Tier 1 may apply for its grant and then enter into an agreement with another entity to administer its grant in whole or in part. Such agreements must comply with applicable program requirements. This approach does require advance State NSP acceptance; however, the grantee will still retain legal responsibility for ensuring'that its grant is carried out in compliance with all program requirements. As a result, this approach does not relieve a grantee of its implementation and 'oversight responsibilities. Specific to Tier 2, if an eligible unit of general local government does not enter into a joint agreement, the sum of its allocation will revert to the county as outlined in Appendix A of the State's Substantial Amendment. A copy of the substantial amendment can be found at: http://www. hcd.ca.aov/fa/nsp/subamendment.html 2009 HERA/NSP Appendix E REGV~IREIIAENTS PAGE ITE~.~ 7. The agreement must provide thaf it shall remain in effect until the State NSP funds and program income received are expended and the funded activities completed. 8. The agreement must provide that the participating units of general local government or the lead entity cannot terminate or withdraw from the cooperation agreement while it remains in effect. 9. The agreement must contain a provision obligating the cooperating units of general local government or lead entity to take all actions necessary to assure compliance with the certification required by section 104(b) of Title 1 of the Housing and Community Development Act of 1974, as amended, including Title VI of the Civil Rights Act of 1964, the Fair Housing Act, section 109 of Title I of the Housing and Community Development Act of 1974, and other applicable laws. 10. The agreement must contain a provision prohibiting NSP funding for activities in, or in support of, any cooperating unit of general local government that does not affirmatively further fair housing within its own jurisdiction or that impedes the lead entity's actions to comply with its fair housing certification. 11. The agreement must expressly state "that the cooperating unit of general local government has adopted and is enforcing: a. A policy prohibiting the use of excessive force by law enforcement agencies within its jurisdiction against any individuals engaged in non-violent civil rights demonstrations; and b. A policy of enforcing applicable State and local laws against physically barring entrance to or exit from a facility or location, which is the subject of such non-violent civil rights demonstrations within jurisdictions." 12. The agreement may not contain a provision for veto or other restriction that would allow any party to the agreement to obstruct the implementation of the approved State NSP application during the period covered by the applicants' NSP agreement with the State. 2009 HERAINSP A-8 Appendix ~ NSP PEI~F~RIWAN~E I~IEASt~RES The jurisdictions will be required to report the following information, but not limited to: 1. The project name; 2. Activity; 3. Beginning dates of activities; 4. Ending dates of activities; 5. Location; 6. National objective; 7. Funds budgeted; 8. Funds expended; 9. Funding source; 10. Total amount of any non-NSP funds; 11. Number of properties; 12. Number of housing units; a. To be acquired; b. To be rehabilitated; c. To be demolished; d, To be sold; and e. To be rented. 13. Numbers of low- and moderate-income persons benefiting; and 14. Numbers of low- and moderate-income households benefiting. 2009 HERA/NSP n_~ n /appendix f~ SECTION ~. The (title of designated official[s]) is hereby authorized and directed to act on the City'slCounty's behalf in all matters pertaining to this application. SECTION 5. If the application is approved, the (title of designated official[s]) is authorized to enter into and sign the grant agreement, and any subsequent amendments thereto, with the State of California for the purposes of this grant. SECTION 6. !f the application is approved, the (title of designated official[s]) is/are authorized to sign Funds Requests and other required reporting forms. PASSED AND ADOPTED at a regular meeting of the City Council/Board of Supervisors of the City/County of held on by the following vote: AYES: NOES: ABSENT: Name and Title City Council/Board of Supervisors STATE OF CALIFORNIA City/County of I, of ,City/County Clerk of the City/County of State of California, hereby certify the above and foregoing to be a full, true and correct copy of a resolution adopted by said City Council/Board of Supervisors on this of day of , 20 Name, City/County Clerk of the City/County of .State of California By: Name, Title 2009 HERAINSP 0_17 DATE: June 2, 2009 TO: Honorable Mayor and Council Members APPROVED BY: Roger L. Haley, City Manag PREPARED BY: Maria Quinonez, City Clerk SUBJECT: LYNWOOD CITY COUNCIL MINUTES Recommendation: Staff recommends the City Council approve following minutes: • Regular Meeting, March 17, 2009 Background: N/A Fiscal Impact: N/A Coordinated With: N/A u LYNI~OOD CITY COUNCIL RC=GULAR MEETINCq MARCH 17, 2009 The City Council of the City of Lynwood met in a regular meeting in the Council Chambers, 11330 Bullis Road on the above date at 5:08 p.m. Mayor Santillan presiding. Council Members Castro, Flores, Morton, Rodriguez, and Santillan were present. Also present were City Manager Haley, City Attorney Galante, City Clerk Quinonez and City Treasurer Alatorre. City Clerk Quinonez announced that the Agenda had been duly posted in accordance with the Brown Act. Item #6. PRESENTATIONS/PROCLAMATIONS Lieutenant Mike Rosson, commented on the upcoming Gifts for Guns event scheduled for March 28-29, 2009 and the low crime statistics in the City of Lynwood. National Housing Month Proclamation received by Adrienne Ray. City Council Members Reporting on Meetings Attended (Gov. Code Section 53232.3(D)) Item #7. COUNCIL RECESS TO: LYNWOOD PUBLIC FINANCE AUTHORITY 7:23 p.m. LYNWOOD REDEVELOPMENT AGENCY 7:03 p.m. LYNWOOD UTILITY AUTHORITY 7:23 p.m. PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) Sylvia Ortiz commented on Item #30 Rent Control -She submitted a petition to Council with 350 signatures from renters that are requesting that rent control be placed on the November ballot. She commented on the poor living conditions the renters are living in. Landlords continue to increase their rent and do not repair. Asked that policies that protect the tenants be set. Harry Gibbens commented that he was trying to find the right agenda item he wanted to talk about but misplaced his notes. Irene Garcia commented on Item #11 Minutes -She stated that some of her comments in the minutes were included but some of them were omitted. Regarding Item #12 Warrant Register -She commented that there are a lot of smog certifications without the licenses to the vehicles and a Shell gas station as opposed to a proper place of business and they seem to be enormous. Regarding Item #25, she submitted a petition to Council and stated that there was no regard to any ordinance or regulation of the approval of the business at Alameda. She submitted a signature from a resident rescinding his signature from the approval of the business on Alameda. She also submitted a some signatures with regards to certifying that there was in fact a Christmas tree sale by Mr. Franco and she has a public request saying there has been no sales by Mr. Franco in the city, she stated that she tends to differ because, some people actually bought. Regarding Item #30 Rent Control -She stated that some years ago she came to request rent control because she heard people came to the City Manager's office requesting assistance of some sort because of the enormous increase in rent when housing had not been improved whatsoever. She is for rent control. She received phone calls from property owners asking why she did that. She believes they should abide by the law and should not be abusive. Salvador Alatorre commented on Item #13 -Request to solicit bids for professional auditing service for the City of Lynwood, Lynwood Redevelopment Agency and Lynwood Information Inc. The City Treasurer commented on page 4, Section II, Item D of the RFP for Professional Auditing Services and would like the City Treasurer's Office to be added as one of the recipients of any written report by the Auditors, of all irregularities and illegal acts or indications of illegal acts of which they become aware. City Clerk Quinonez read a letter addressed to Mayor Santillan, from the Apartment Association of California Southern Cities, Inc. regarding Item #30 Rent Control. In the letter the Apartment Association requests a "no" vote on the issue of rent control in the City of Lynwood. PUBLIC ORAL COMMUNICATIONS Irene Garcia stated - At the last Council meeting I read, and it was not placed on the agenda as part of the minutes. I read with regards to and it was all written, item 8 and resolution 3226 and the 51 conditions you have for the conditional use permit. In what way does that protect the health and welfare, public safety and the environment. Section 1 B states that the use will not adversely affect, how is noise beneficial in disturbing the peace in what way is this beneficial to the residents. Once again I refer to Pacer International, 2700 E. Imperial Hwy. You have on file numerous complaints that for 6 years residents have endured. When I read this portion that I have highlighted I stated, persons can hear the noise that comes from Jones Lumber as well as from Jorgensen Steel building located at 10650 S. Alameda, just north of MLK, being that this business is much closer. It what way will it be a benefit to the residents. 1 highlighted this copy because Mr. Ramon Rodriguez paused and stated, you must have keen hearing, that is approximately one quarter mile away from 111th St., that is where I live and I do not believe Mr. Rodriguez you are hard of hearing. That is a lie on your part. How can you possible confuse persons for me when I never mentioned, I can hear. And when Mr. Paul Richards was in office they tried very hard to get the truck companies and private truck owners to have the containers taken by rail to a place downtown Los Angeles to be warehoused and away from residential areas at the time the rail fees were too high so that failed and this is for Mr. Ramon, this is something that I read and I never once stated, I, so That can be corrected and i hope that the minutes reflect my statements, don't hide it, let it flow. Alice Corona commented in support of rent control and the high increase in rent and poor living conditions in her apartment. She described the various repairs that are needed and is here to ask for help. Believes there is discrimination. Her rent is increased every six months. Derek Alatorre of the Southcoast Air Quality Management District thanked the city for the invitation to the Lynwood Business Roundtable meeting. He commented on the lawsuit Southcoast Air Quality is currently facing in Superior Court and the court order to stop their permit process. He advised Council that more information regarding this moratorium will be provided at the Gateway Cities COG City Manager's meeting. Also, announced that beginning April 22"d, they will begin their lawnmower exchange program, those interested can sign up online. Bill Vantrump property owner in Lynwood, commented against rent control. He commented that his properties are well maintained and asked Council to consider not implementing rent control in the city. Antonia Nelson commented in support of rent control. She commented on the poor living conditions she lives in at her apartment on MLK and the high cost of rent. Asked Council to help. Joseph Elkins commented in support of the Homeowner's Protection Act. Commented on foreclosures, bankruptcy, and protecting the assets of property owners. Ami Achertson commented in support of the Homeowner's Protection Act. Invited everyone to the Homeowner Protection Act Town Hall meeting scheduled on March 29t", at Batman Hall. Elda Murillo commented in support of rent control, the deteriorated living conditions, drugs and gang activity in her apartment complex. Asked for Council's support. Owner does not allow them to hold yard sales. Pastor Monroe of the Greater New Beginning Missionary Baptist Church, invited all clergy and City Council Members to their Prayer Breakfast scheduled for Thursday, March 19t". Cesar Cubas commented on the problems he and other tenants are experiencing with their landlord and are asking for the city's help with their situation. Fernando Magana commented on a letter he received from his landlord indicating that if any repairs are needed in their apartment they have to pay for them. They have no money. Joanette Gutierrez commented on the possibility of having the yard sales at the schools or the park. Suggests that the city charge the permit fee for the space and avoid tenants having issues with their landlords. She commented on the employment in the city and bringing more jobs to the city. She commented on the residents who purchased property on Alameda by the railroad. She commented on big businesses coming into the city to bring in more revenue. She would prefer to shop in Lynwood than in all the surrounding cities. Asked that Redevelopment talk to developers and ask them to come into the city. Suggests Alameda would be a good location. Sylvia Ortiz commented on the Homeowner's Protection Act and indicated that she did not invite the individuals to speak. She made additional comments in support of rent control and asked Council to stop increasing rates. She requested the contact information from one of the property owners present so that she can refer seniors to him for renting. Oliver Connor property owner in Lynwood, commented that he takes care of his tenants and makes improvements to his apartment complex when needed. Commented on the improvements in the City streets and an available apartment he has for rent. Pastor Monroe commented on the location of the Prayer Breakfast, scheduled for 9 a.m. at Bateman Hall, Room #2. Invites everyone to come pray. Dan Brayband commented against rent control. Comments it is difficult to deal with rent control. Believes property values are affected due to rent control. Asked Council to vote no against rent control. Hugo Contreras, Realtor, commented against rent control. He believes property values will decline. Suggests tenants should keep units in good shape and clean. Adrienne Ray of the Fair Housing Foundation commented that renters with issues of habitability in their rental units should contact the Fair Housing Foundation or the city's Code Enforcement Division. Landlords are cited if they do not repair the units. Antonio Munguia commented on the parking situation on the streets. Suggest that the city implement parking restriction on streets. Commented that the garage conversions will decline if parking is restricted on the city streets. Marianna Davanal from the Civic Engagement Team commented about the non-profit organization she is involved in composed of 18 - 24 years olds who dedicated 10 months of their life to national service. She is responsible for school beautification projects. She is here to tell Council how inspired she is with the changes in the community. PUCiLIC HEARINGS Item #8. CONSIDERATION OF AN ORUINANGE REQUIRING REGISTRATION AND MAINTENANCE OF ABANDONED PROPERTIES Roger Haley, City Manager asked that the City Council open the public hearing and continue it to the next regularly scheduled City Council meeting. It was moved by Council Member Rodriguez, seconded by Member Flores, to open the public hearing. It was moved by Council Member Rodriguez, seconded by Mayor Pro Tem Castro, to approve staff's recommendation to table the item to the next regularly scheduled Council meeting. AYES: COUNCIL MEMBERS CASTRO, FLORES, MORTON, RODRIGUEZ, AND SANTILLAN NOES: NONE ABSTAIN: NONE ABSENT: NONE Item #9. APPROVAL OF A DISPOSITION AND DEVELOPMENT AGREEMENT WITH HABITAT FOR HUMANITY OF GREATER LOS ANGELES FOR THE PURCHASE AND DEVELOPMENT OF AFFORDABLE HOUSING PROJECT LOCATED AT 3254 PALM AVENUE, APPROVAL OF THE RELOCATION PLAN AND REPLACEMENT HOUSING PLAN It was moved by Mayor Pro Tem Castro, seconded by Council Member Flores, to open the public hearing. Lorry Hempe, Assistant City Manager, introduced the item regarding approval of the Disposition and Development Agreement with Habitat for Humanity of Greater Los Angeles for the purchase and development of affordable housing project located at 3254 Palm Avenue, approval of the relocation plan and replacement housing plan. It was moved by Mayor Santillan, seconded by Member Morton, to close the public hearing. After discussion from Council Members, it was moved by Mayor Santillan, seconded by Member Flores, to adopt the resolution. RESOLUTION NO. 2009.035-01 ENTITLED: A JOINT RESOLUTION OF THE LYNWOOD REDEVELOPMENT AGENCY AND THE CITY OF LYNWOOD AUTHORIZING THE CHAIRPERSON AND MAYOR TO EXECUTE A DISPOSITION AND DEVELOPMENT AGREEMENT WITH HABITAT FOR HUMANITY OF GREATER LOS ANGELES TO PURCHASE AND DEVELOP AN AFFORDABLE HOUSING PROJECT LOCATED AT 3254 PALM; APPROVING A RF_LOCATION PLAN FOR THE RESIDENTS AT 3254 PALM AVENUE; AND APPROVING THE REPLACEMENT HOUSING PLAN FOR 3254 PALM AVENUF_". AYES: COUNCIL MEMBERS CASTRO, FLORES, MORTON, RODRIGUEZ, AND SANTILLAN NOES: NONE ABSTAIN: NONE ABSENT: NONE Item #10. NEIGHBORHOOD STABILIZATION PROGRAM DESIGN PHASE PUBLIC HEARING Lorry Hempe, Assistant City Manager, Assistant City Manager asked that the City Council open the public hearing and continue it to the next regularly scheduled City Council meeting. It was moved by Council Member Morton, seconded by Mayor Santillan, to open the public hearing. It was moved by Council Member Flores, seconded by Mayor Santillan, to close the public hearing, and continue the item to the next regularly scheduled Council meeting. AYES: COUNCIL MEMBERS CASTRO, FLORES, MORTON, RODRIGUEZ, AND SANTILLAN NOES: NONE ABSTAIN: NONE ABSENT: NONE CONSENT CALENDAR It was moved by Council Member Rodriguez, seconded by Council Member Morton, to approve the consent calendar and receive and file staff reports. Item #11 Mayor Pro Tem Castro pulled Item #11 -MINUTES OF PREVIOUS MEETINGS: Special Meeting -January 27, 2009 After discussion, Mayor Pro Tem Castro made a motion to approve the minutes, seconded by Council Member Flores. AYES: COUNCIL MEMBERS CASTRO, FLORES, MORTON, AND RODRIGUEZ NOES: NONE ABSTAIN: NONE ABSENT: SANTILLAN (for vote) item #12 APPROVAL OF THF_ WARRANT REGISTER RESOLUTION NO. 2009.035-02 ENTITLED: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD, CALIFORNIA, ALLOWING AND APPROVING THE DEMANDS AND WARRANTS THEREFORE Item #13 REQUEST TO SOLICIT BIDS FOR PROFESSIONAL AUDITING SERVICES FOR THE CITY OF LYNWOOD, LYNWOOD REDEVELOPMENT AGENCY AND LYNWOOD INFORMATION INC. RESOLUTION NO. 2009.035 ENTITLED: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD AUTHORIZING STAFF TO SOLICIT BIDS FOR PROFESSIONAL AUDIT SERVICES BEGINNING WITH FISCAL YEAR ENDING JUNE 30, 2009. Item #14 COST ABATEMENT REPORT FOR 12140 CORNISH AVENUE, LYNWOOD, CALIFORNIA (APN# 6174-023-028) RESOLUTION NO. 2009.036 ENTITLED: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD CONFIRMING THE COST ABATEMENT REPORT SUBMITTED FOR 12140 CORNISH AVENUE, ASSESSOR'S PARCEL NO. 6174-023-028, LYNWOOD, CALIFORNIA AND DIRECTING THE ASSESSMENT THEREOF Item #15 COST ABATEMENT REPORT FOR 5165 LOS FLORES BOULEVARD, RESOLUTION NO. 2009.037 ENTITLED: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD CONFIRMING THE COST ABATEMENT REPORT SUBMITTED FOR 5165 LOS FLORES BOULEVARD, ASSESSOR'S PARCEL NO. 6194-004-024, LYNWOOD, CALIFORNIA AND DIRECTING THE ASSESSMENT THEREOF. Item #16 Fred Galante, City Attorney, pulled Item #16 -APPROVAL FOR THE WIN PROJECT TO ENTER INTO AN AFFORDALE HOUSING AGREEMENT FOR USE OF HOME FUNDS AND FOR THE OF PURCHASE PROPERTY AT 12698 HANSA COURT This item was tabled to the next regularly scheduled Council meeting. Item #17 SET DATE OF PUBLIC HEARING -PROPOSED PHASE REVISION TO UNDERGROUND DISTRICT NO. 11 RESOLUTION NO. 2009.038 ENTITLED: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD SETTING A PUBLIC HEARING TO REVISE THE PHASING PRIORITY FROM PHASE I TO PHASE II FOR UNDERGROUND DISTRICT NO. 11 Item #18 ADOPTION OF PLANS, CONTRACT DOCUMENTS AND WORKING DETAILS-ABBOTT ROAD WATER MAIN PROJECT, PROJECT NO. 4011.67.982 RESOLUTION NO. 2009.039 ENTITLED: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD ADOPTING THE PLANS, CONTRACT DOCUMENTS AND WORKING DETAILS FOR THE ABBOTT ROAD WATER MAIN PROJECT, PROJECT NO. 4011.67.982 AND AUTHORIZING THE PUBLIC WORKS STAFF TO SOLICIT BIDS Item #19 ACCEPTANCE OF THE RECLAIMED WATER MAIN PROJECT ON JOSEPHINE STREET (FROM VIRGINIA AVENUE TO WRIGHT ROAD) PROJECT NO. 4011.67.950 RESOLUTION NO. 2009.040 ENTITLED: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD ACCEPTING THE RECLAIMED WATER MAIN PROJECT ON JOSEPHINE STREET (FROM VIRGINIA AVENUE TO WRIGHT ROAD), PROJECT NUMBER 4011.67.950 AS BEING COMPLETE AND AUTHORIZING THE CITY ENGINEER TO PROCESS THE RECORDATION OF THE NOTICE OF COMPLETION". Item #20 BUDGET AMENDMENT AND CONTRACT CHANGE ORDER FOR STREET IMPROVEMENT PROJECT. PELLEUR STREET, CORNISH AVENUE, COYLER AVENUE, JACKSON AVENUE AND 2668 MARTIN LUTHER KING, JR. BOULEVARD, PROJECT NO. 4011.67.949 RESOLUTION NO. 2009.041 ENTITLED: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD APPROVING THE WATER SERVICES REPLACEMENT RELATING TO THE PELLEUR STREET, CORNISH AVENUE, COYLER AVENUE, JACKSON AVENUE AND 2668 MARTIN LUTHER KING JR. BOULEVARD STREET IMPROVEMENT PROJECT, PROJECT NO. 4011.67.949; AUTHORIZING THE CITY MANAGER OR DESIGNEE TO MAKE THE NECESSARY FUNDS APPROPRIATION AND TRANSFER; AND APPROVING CONTRACT CHANGE ORDER NO. 1 FOR THIS WORK Item #21 CONTRACT AWARD TRAFFIC SIGNALS LED RETROFIT PROJECT, PROJECT NO. 4011.67.882 RESOLUTION NO. 2009.042 ENTITLED: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD AWARDING A CONTRACT TO METRO PARKING AND TRAFFIC SYSTEMS INC., AS THE APPARENT LOWEST RESPONSIBLE BIDDER, IN THE AMOUNT OF $226,029 FOR THE PURCHASE AND INSTALLATION OF LIGHT EMITTING DIUDES (LED} RETROFIT PROJECTS, PROJECT NUMBER 4011.67.882 AND AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT Item #22 CONTRACT CHANGE ORDER FOR LPA, INC. HAM PARK REPLACEMENT PROJECT, PROJECT NO. 4011.67.945 RESOLUTION NO. 2009.043 ENTITLED: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD APPROVING A CONTRACT CHANGE ORDER IN THE AMOUNT OF $23,152 FOR THE SERVICE CONTRACT AGREEMENT WITH LPA, INC. FOR THE HAM PARK REPLACEMENT PROJECT, PROJECT 4011.67.945 AND AUTHORIZING THE CITY MANAGER OR DESIGNEE TO MAKE THE NECESSARY FUNDS APPROPRIATION AND TRANSFER Item #23 Mayor Santillan pulled Item #23 -CARNIVAL ADDITION TO ANNUAL EASTER EGG HUNT After discussion, Mayor Santillan made a motion, seconded by Council Member Rodriguez to approve staffs recommendation. Approve this request to set up a professional carnival as part of the City's Annual Easter Egg Hunt, with the following conditions: 1. The applicant must meet the City of Lynwood permit requirements. 2. The applicant agrees to comply with any requirements set forth by the Sheriff Department as well as the Fire Department. 3. The applicant must agree to keep the noise levels within those prescribed by the Lynwood Municipal Code. 4. The applicant must agree to comply with any requirements set forth by the L.A. County Health Department. 5. All City of Lynwood fees must be paid in accordance with the current fee schedule. AYES: COUNCIL MEMBERS CASTRO, FLORES, MORTON, RODRIGUEZ, AND SANTILLAN NOES: NONE ABSTAIN: NONE ABSENT: NONE Item #24 SECOND READING OF ORDINANCE -GENERAL PLAN AMENDMENT NO. 2008-01, ZONE CHANGE NO. 2008-02 AND TENTATIVE TRACT MAP 2008-01, 4237 IMPERIAL HIGHWAY, ASSESSOR PARCEL NUMBER 6192-023-024 ORDINANCE NO. 1606 ENTITLED: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LYNWOOD APPROVING GENERAL PLAN AMENDMENT NO. 2008-01; CHANGING THE GENERAL PLAN DESIGNATION FROM "R-1" (SINGLE FAMILY RESIDENTIAL) TO "R-3" (MULTI FAMILY RESIDENTIAL), ZONE CHANGE NO. 2008- 02; CHANGING THE ZONING DESIGNATION FROM "R-1" (SINGLE FAMILY RESIDENTIAL) TO "PRD" (PLANNED RESIDENTIAL DEVELOPMENT), AND TENTATIVE TRACT MAP 2008-01 IN CONJUNCTION WITH A PROJECT PERMITTING THE DEVELOPMENT OF FIVE (5) DUPLEX'S, TEN (10) CONDOMINIUM UNITS TOTAL, LOCATED AT 4237 IMPERIAL HIGHWAY, FURTHER DESCRIBED AS ASSESSOR PARCEL NUMBERS 6192-023-024, CITY OF LYNWOOD, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA Item #25 SECOND READING OF ORDINANCE -GENERAL PLAN AMENDMENT NO. 2008-02, AND ZONE CHANGE NO. 2008-03, 10700 ALAMEDA AVENUE, ASSESSOR PARCEL NUMBERS 6170-002-026, 034, 035, 036, 037, 038, 039, 040, 043 ORDINANCE NO. 1607 ENTITLED: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LYNWOOD APPROVING GENERAL PLAN AMENDMENT NO. 2008-02; CHANGING THE GENERAL PLAN DESIGNATION FROM "C-3" (COMMERCIAL) TO "I" (MANUFACTURING), ZONE CHANGE NO. 2008-03; CHANGING THE ZONING DESIGNATION FROM "C-3" (HEAVY COMMERCIAL) TO "M" (MANUFACTURING), IN CONJUNCTION WITH A PROJECT PERMITTING A TRUCK STORAGE FACILITY, LOCATED AT 10700 ALAMEDA AVENUE, FURTHER DESCRIBED AS ASSESSOR PARCEL NUMBERS 6170-002-026, 034, 035, 036, 037, 038, 039, 040, 043, CITY OF LYNWOOD, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA Item #26 SECOND READING OF ORDINANCE -AMENDING CHAPTER 3 OF THE MUNICIPAL CODE ADDING A NEW SECTION 3-33 RELATING TO NARCOTICS AND GANG RELATED CRIME PREVENTION PROGRAM ORDINANCE NO. 1608 ENTITLED: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LYNWOOD AMENDING CHAPTER 3 OF THE MUNICIPAL CODE ADDING A NEW SECTION 3-33 RELATING TO NARCOTICS'AND GANG RELATED CRIME EVICTION PROGRAM AYES: COUNCIL MEMBERS CASTRO, FLORES, MORTON, RODRIGUEZ, AND SANTILLAN NOES: NONE ABSTAIN: NONE ABSENT: NONE NEWlOLD BUSINESS Item #27 FISCAL YEAR 2009 BUDGET FINANCIAL UPDATE Robert Torrez, Assistant City Manager, introduced the item regarding Fiscal Year 2009 Budget Financial Update After discussion from Council Members, it was moved by Mayor Santillan, seconded by Mayor Pro Tem Castro, to fill the vacant maintenance worker position in Public Works. AYES: COUNCIL MEMBERS CASTRO, FLORES, MORTON, RODRIGUEZ, AND SANTILLAN NOES: NONE ABSTAIN: NONE ABSENT: NONE Item #28 CITY MANAGER EMPLOYMENT AGREEMENT AMENDMENT Roger Haley, City Manager, commented on the Item #28 -City Manager Employment Agreement Amendment. Mr. Haley, declined the rate increase to his contract and the retroactive pay. After discussion from Council Members, it was moved by Mayor Pro Tem Castro, seconded by Council Member Flores, approve the following: Receive and file the attached City Manager Employment Agreement Amendment. AYES: COUNCIL MEMBERS CASTRO, FLORES, MORTON, RODRIGUEZ, AND SANTILLAN NOES: NONE ABSTAIN: NONE ABSENT: NONE Item #29 CERTIFICATION, REVIEW, AND GRANTING OF UTILITY USER'S TAX EXEMPTIONS FOR CALENDAR YEAR 2009 Robert Torrez, Assistant City Manager, introduced the item regarding certification, review and granting of Utility User's Tax Exemptions for calendar year 2009. It was moved by Mayor Pro Tem Castro, seconded by Council Member Flores, to adopt the resolution. RESOLUTION NO. 2009.044 ENTITLED: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD APPROVING THE CERTIFIED LIST OF UTILITY USER'S TAX EXEMPTIONS FOR THE PERIOD OF JANUARY 1, 2009 THROUGH DECEMBER 31, 2009, AND GRANTING EXEMPTIONS TO THE INDIVIDUALS ON THE CERTIFIED LISTS AYES: COUNCIL MEMBERS CASTRO, FLORES, MORTON, RODRIGUEZ, AND SANTILLAN NOES: NONE ABSTAIN: NONE ABSENT: NONE Item #30 RENT CONTROL Fred Galante, City Attorney introduced the item regarding Rent Control. After discussion from Council Members it was moved by Mayor Pro Tem Castro, seconded by Council Member Flores, to receive and file the staff report. AYES: COUNCIL MEMBERS CASTRO, FLORES, MORTON, RODRIGUEZ, AND SANTILLAN NOES: NONE ABSTAIN: NONE ABSENT: NONE Item #31 STATUS OF THE HOME PROGRAM It was moved by Mayor Pro Tem Castro, seconded by Council Member Flores, to approve staffs recommendation to receive and file the HOME report. AYES: COUNCIL MEMBERS CASTRO, FLORES, MORTON, RODRIGUEZ, AND SANTILLAN NOES: NONE ABSTAIN: NONE ABSENT: NONE Item #32 A TRANSFER OF PROPERTY TITLE FROM THE CITY TO AGENCY AND THE LOCATION COMMONLY KNOWN AS LOS ANGELES COUNTY ASSESSOR'S PARCEL NUMBERS (APN'S) 6175-001-902, 6175-001-903 It was moved by Council Member Flores, seconded by Council. Member Rodriguez, to adopt the resolution. RESOLUTION NO. 2009.045 ENTITLED: A RESOLUTION OF THE CITY OF LYNWOOD TO AUTHORIZE THE TRANSFER OF OWNERSHIP OF TITLE ON CERTAIN PROPERTY FROM THE CITY TO THE LYNWOOD REDEVELOPMENT AGENCY". AYES: COUNCIL MEMBERS CASTRO, FLORES, MORTON, RODRIGUEZ, AND SANTILLAN NOES: NONE ABSTAIN: NONE ABSENT: NONE Item #33 STATE MANDATED INCREASE IN PARKING VIOLATION FEES It was moved by Council Member Morton, seconded by Mayor Pro Tem Castro, to adopt the resolution. RESOLUTION NO. 2009.046 ENTITLED: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD ESTABLISHING FEES AND CHARGES RELATIVE TO LEGISLATION INCREASING PENALTIES FOR PARKING VIOLATIONS TO COMPLY WITH PROVISIONS OF SB 1407 WHICH MANDATES INCREASING CIVIL PENALTIES BY $4.50 FOR AL.I_ PARKING VIOLATIONS ISSED AND PAID AFTER JANUARY 1, 2009". AYES: COUNCIL MEMBERS CASTRO, FLORES, MORTON, RODRIGUEZ, AND SANTILLAN NOES: NONE ABSTAIN: NONE ABSENT: NONE Item #34 SETTLEMENT PROPOSAL FOR A CLAIM BY THE CITY OF LYNWOOD AND THE LYNWOOD REDEVELOPMENT AGENCY AGAINST LAVERNE JACKSON It was moved by Mayor Pro Tem Castro, seconded by Council Member Morton, to provide direction to staff on this matter. AYES: COUNCIL MEMBERS CASTRO, FLORES, MORTON, RODRIGUEZ, AND SANTILLAN NOES: NONE ABSTAIN: NONE ABSENT: NONE Item #35 LONG BEACH BOULEVARD IMPROVEMENT PROJECT, PROJECT 4011.67.937, SELECTION OF MEDIAN ISLAND AND ENTRY MARKER DESIGN CONCEPTS Dan Ojeda, Director of Public Works, introduced the item regarding Long Beach Blvd. Improvement Project 4011.67.937, selection of Median Island and Entry Marker Design Concepts. After discussion from Council Members, the following concepts were selected by the City Council for the Long Beach Boulevard Improvement Project: • City Entry Monument -Concept A • Median Island -Concept #1 -Palm Tree with wrap around bougainvillea • Bottom Shrubbery -Concept #2 -Bird of Paradise • Fence -Concept #2 -Stone Plaster Item #35-A SUBSEQUENT NEED ITEM -APPROVAL OF PROJECTS AND FUNDS APPROPRIATION FOR PROJECTS TO BE FUNDED WITH THE AMERICAN RECOVERY AND REINVESTMENT ACT (ARRA) OF 2009 FUNDS Council Member Morton made a motion, seconded by Mayor Pro Tem Castro, to hear the subsequent need item. AYES: COUNCIL MEMBERS CASTRO, MORTON, RODRIGUEZ, AND SANTILLAN NOES: FLORES ABSTAIN: NONE ABSENT: NONE Dan Ojeda, Director of Public Works, introduced the item regarding the approval of projects and funds appropriation for projects to be funded with the American Recovery and Reinvestment Act (ARRA) of 2009 funds. Mayor Santillan made a motion, seconded by Mayor Pro Tem Castro, to adopt the resolution. RESOLUTION NO. 2009.047 ENTITLED: APPROVING THE IMPLEMENTATION OF STREET PROJECTS TO BE FUNDED WITH THE AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009 FUNDS; DELEGATING THE AUTHORITY TO AWARD AND EXECUTE A PROFESSIONAL DESIGN CONTRACT FOR RELATED PROJECTS TO THE CITY MANAGER AND AUTHORIZING THE CITY MANAGER OR DESIGNEE TO MAKE THE NECESSARY FUNDS APPROPRIATION AND TRANSFER FOR THE DESIGN OF THESE PROJECTS AYES: COUNCIL MEMBERS CASTRO, FLORES, MORTON, RODRIGUEZ, AND SANTILLAN NOES: NONE ABSTAIN: NONE ABSENT: NONE CITY COUNCIL ORAL AND WRITTEN COMMUNICATION NONE CLOSED SESSIt?N it vas moved by Council Member Morton, seconded by Mayor Santillan, and carried to recess to closed session at 8:47 p.m. The City Council reconvened at 10:11 p.m. City Attorney Galante stated that the Council met in closed session and with respect to the following wafters: Item #36. CLOSED SESSION ITEMS 1. With respect to every item of business to be discussed in closed session pursuant to Section 54956.9: CONFERENCE WITH LEGAL COUNSEL -EXISTING LITIGATION (subdivision (a) of section 54956.9:) 1. Name of Case: Nabar Enrique Martinez, et al. v. City of Lynwood Case No. BC374258 No reportable action taken. 2. Name of Case: Laverne Jackson-Thomas Adv. Case No. 8:08-bk-01449-RK USBC Case No. 8:08-bk-14542-ES Not discussed. ADJOURNMENT Having no further discussion, it was moved by Council Member Rodriguez, seconded by Council Member Flores, and carried to adjourn the regular Lynwood City Council meeting at 10:12 p.m. Maria Santillan, Mayor Maria Quinonez, City Clerk V , ~~ ~- AGEiV®A STAFF REP®RT :. _... P .;.: DATE: June 2, 2009 TO: Honorable Mayor and Members of the City Council APPROVED BY: Roger L. Haley, City Manag r PREPARED BY: Robert S. Torrez, Assistant City Manager-Administrative & Community Services Lilly Hampton, Accounting Technician SUBJECT: Approval of the Warrant Register Recommendation: Staff respectfully recommends that the Lynwood City Council approve the warrant register for Fiscal Year 2008-2009. Attached Warrant Register dated June 2, 2009-------------- IZ W n m S f/1 O O d n 7 n N V s W N O W N < (`e _ _ X' N aD _ U~ O C7~ A ~ n o N P ~1 ~ p O ~ n ~ .. ~ f£y U~ A ~ ~, 0 c;, 0 cn o `r a ~ ~ ~ ~ O N ~ m F N ? N O N O O ry .. ~ ~ O O O O O N O A W d A cn O m O O r ~ = m ~ .~ r m n z D n ~ m -G N D < G < ur ~ .. 0 cn 0 cn o v, n m w n S N rn N ~ N ~ z O ~ n N o N O N O C O n R ~ ~ ~ ~ -n O ~ n 7 ~P V A O n ~ F r N au v v ~ ~ O N rn o N a ~ ~ A (G v W v O W W A V O ~ O O ~ ~ ~ o0 N N o N w N < O a O O O W N ~ ~ O O O O D p`~t ~~ A ID ~ O O W IV W A O) 7 ." 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Z d m O N ~1 A N N D 0 ~ W W O m ~ W N N 0 N A ( O ~ N Ut 01 Ot OD ~ N O (O 0 0 O O O ~ tD O O O O N W ~ ~ IV ~ j O 0 0 O O O A 01 V 0 0 0 0 t0 ~ ~ W W W A N O O 00 O O> (O 00 00 O (P . i. n ~ O O C K ~ 7 ~s o ~ o a .O d m W v m m A ~ (Ole (OD ~ ~ OW CT O U~ ~ ~ ~ (OP ~ O .p O N N 00 O O N N ~ O O N N ~ O O] N O O W N O O QJ N O O ~ ~ O N O ~ ~ O O N 00 O N 00 O A A ~ D ,Z~j (~ D ~ T ,ZO] Z y ~ ~ n ~ n D T ,ZO7 z D Z c Z n O D ~ O ~ O z y z ~ D 'Z D o p c 7~ m Z O D -mi ~ ~ O m m z ~ O m m 7J C> < c A ~ m x ~' N O O o A o W ~' N O O o ~ ~ °m A W rn m cNi+ m N O W d IA+ (7 ~ N N fl T. O O S ~ Q Q N ~ ~ N N N p '~ N N ~ ~ O O ~ ~ ~ O ~ O ry O N ~ 3 J a (O A W ~ W Q1 Z n C O ~ ~ Z O _n m ° - O ~ z A O O ~ W O N ° °m °m °m rn rn °W °m ° ~ p 0 o O o 0 0 0 o O a ~ W W W A W W O W ~ OOo W W W l~ (D Oo Oo Oo N -~ r ~I ~ J 1 T ' m -' f/1 ~ -I ~ 7[7 O o p ° m o m ° y ° ~ ° 7J ° O ° D ° '~ ° ~ ° m N ~a~ ~o~c~ ~w ~m~m ~O-~o ~-Di m -'c ° ~ c c o 0 N W ~ ~ r .p .T .(+. ZJ ~ m ? TI ~ Z ' (T (7 O A O ~_ O Ui m N m O Qa O Qo O ~ N~ ~ ~ 'w Z A O ~~ ;~o_~ $~ oaon gmom °A c°O ~v~ m~ b~nb>n mtzn rnAb~A rnm' m b~< mZ p,zDl D c°o N oDo D o ACA °rn° m ~y~ ~ i°v °a ~ Z o ~Z cn~~,~ °D NON ~ oOm O ~ oO ~ c C7 (7 ~ ~ _ ~ ~ < m m m ~ A Z -Di ~ ~ < < m° o ~ ~ o ~ o m ~ 0 0 0 ~' m o o ~ o Z ~ ~ ~ ~ ~ ~ ~ ~ N N f0 N J + -' _ _ N (T N W A ~~ W W O O N (T W~ O O O O 0 O O A A O fn (T O O O O N N tD ~ G O C O O 0 0 O N N 0 0 O C O O tl~ N W W O O T 0 0 0 0 O N N O O O 0 0 O 6~ T Oo W 0 0 ~. f11 f) N ~ QJ N N9 ~" O O (D ea A W A n O C ~ n r ~ ~ ~ f r O N 6 "' v v m A ~~ O J W N N O W O O N V n r z n D rr D m O T D Z W m z D Z7 z O co O m m N W W N N O O O O N OD N A _n O T x m ;U m V O W N U~ W N N O O O O O W W N J n O TI Z r O 0 O O 0 A N (T p N N N O O O O O W W n Z D m :il m _D O w D T m -~ 0 W W m N 0 (T w W N N O O O O W O W n D Z 0 O O m w W rn N N N N N O O O O O V J n m .'ill -n m O v z cl A CO m Z n 0 O O J N W O N N N N O O O O m N J n m Z C a 0 W c m m J V V o N A W c o 0 0 0 ° ° ° rn rn ° rn ° rn ° a o rn ° rn N 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O N O N N N ~ W W N i O ( O ( D (D ( D N J (O O N W W Oo O~ Oo V < ~' '` N O iii y N C7 7 N $ ~' W _ , N O fD O N °" O O. 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A ~ N O m li ( A W ~ ~ W A [T -+ tO [O 0 0 0 0 O O N O w ~ W J ( T 0 0 0 0 0 0 0 0 0 0 0 0 0 m m w m ~ w m m m co ~ rn m 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 °o °o °o °o °o °o °o o° °0 0 0 W A V V CP A ~ N N W W(T O W ~ UOi N N -+ A W O O O A V V O~ W r ~r~r ~n~ r o g a o W (~ p N1N-~ N -~ rn rn ~ rn ~ N (7 A~ A-A ~ W m m m m ~ ~ ' a A A~ plZp~ziv Di.l z Z ~ to ~m~m~ m W m O mD al D Jr~I r N D O (~ (T -n OnOn(T O C O.TlO 7JO ~7 ~ ~ A~ Z A D U -i Jr~lf NZ W ~ A AmO~ W~ fT1 pp ~ O D Qomoomb, m m~OTO T N C W W o ~co AAA ~ ~~ O z O D~~~ O m Z m ~ O O O Ui ~ m (T r bl N- N b~0 al O rn (T W m (P '~ blzrnZrn rn N- N- A m A ~ N ~"~ ~rnArn ~ N~ N~ N - ~ n N N Z N Z o 0 o c T o 0 o Z o Z~~ o T r n' '~ o al m o~ o~ o~ T ~ o m ~ 0 0 (TTN m O O r O O Ut N O N 1 fT (T m U~ ~ ~ m m u/ m < < A O O O ~ ~ ~ G D D ~ ~ ~ N ~ m m :0 7J 7J n m n n = 2 ~ N m m m D D m w m ~ i i z -i ~ ~ ~ -~ z z ~ ~ ~ ~ 0 0 0 ~ ~ ~ ~ m m OJ N N N O O ~ W ~ O CWii J T ON1 W W W A OOo A A N ~ N ~ N Oo Oo O O O O G O O m v O N W D p A O O O G ~ T ~ O O O ~ (!~ (P O O O , -~ €~ e aY n N B0 N N '°°' O O ~A a A W A D n ~ O O C 1~ 3 7 Z o ~ o a v m m o O1 m °i e v c o c o ~ o m w a ~ ~ w w w n O (D Co J a7 N O a m W a7 W W ~ a7 N N N N N N N 0 D N N N N N N d 6 O O O O O O ~ ~ °m ° coo c°o ° coo ~ o O o O o o C O O O O O O ry O O J O O O ~ ID c0 C~ o ~I o O. 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N N _ D m w W ~ ~ ~ N (O eND (NO OAf p~~ ~ '_ W OJ (O 3 w tp tD N N N N b (O A A N O (SI C O 00 W G O ~~ O O V ~I T a) ~' 0 0 O w O t0 (O V V 0 0 O O) W W O~ O) O O O C] G ~ ~ N ~ W y ~ e+ Q a s .~ W N A n `G O< r 3 `G (D 7 -e r O N O ,~ d v m m N N m m m N W w w <n w 0 0 C C a ~ m m 41 N ~ O ~ Q Y1 ~ ~ F 0 0 ~ a m d a 6 m N CJi (P ~ W ~ N O (O W rn m m N N N ~ ~ ~ o O O O A O O fT V J V V ~ ~ m O ~ p o ~ 7J z m O 1 .Z ~ W D ~ ~ < ~ m O ~ D 7J --~ r m ~ ~ ~ O O O O N O o O °o °o 0 0 O W o W o fDi m s x ~ V W fD n O a m rn N N 0 ~ rn N N 0 ~ p d m ~ a S ~ ~ 0 W 0 A 3 O D r ~ m o o ~, ~ ~ p~ A m C D D - i = r z O O A ~ ~ A m W O W O O n ~ O ~' m n G O N ~ IV O o # 0 0 _N N N W -~ D O 0 0 o Dp o~ j m g m m ~~~~_ m m ~~ ~^ oZOZ oA u'im o~ a _ . 2 ~ cn D<nD cn~ oC nwiN ~ b~Ah>A bum mD oz D ON Z NO Z ~~ ~ r W n N ~ (T ~ N ~ U ~ '~ C ~ ~ ~ CJ C 7 1 m m .T7 W (7 ,.w ~' (7 c7 O ~ ~ A A Z7 o ~ v v n ~ ~ ~ ~ c~ e~ A A D f00 t00 V V O O O A A ~O (NO OOi 3 W W N N O O O N (T O1 m N C W W O O O 0 0 O O G O O w N N 0 0 O O O 0 0 O O O N C1 N ~ U7 N .ys Q 0 cv s w A D n 0 M O n r s ~ ~ 3 ~ o ~ o 6 v m m N W ~AGEPIDA Sl°AFF REPORT DATE: June 2, 2009 TO: Honorable Mayor and Members of the City Council FROM: Roger L. Haley, City Manag r PREPARED BY: Robert S. Torrez, Assistant City Manar~Admin & Community Services Christy Valencia, Finance Manager SUBJECT: Selection of a Firm to Provide Professional Auditing Services for the City of Lynwood, Lynwood Redevelopment Agency and Lynwood Information Inc. Recommendation: Staff recommends that the Lynwood City Council adopt a resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD AWARDING A THREE-YEAR CONTRACT FOR PROFESSIONAL AUDIT SERVICES FOR THE CITY OF LYNWOOD, LYNWOOD REDEVELOPMENT AGENCY AND LYNWOOD INFORMATION INC. BEGINNING WITH FISCAL YEAR ENDING JUNE 30, 2009 TO THE FIRM MAYER HOFFMAN MCCANN". Background: The City's contract with the CPA firm Moss, Levy & Hartzheim for annual audit services has expired. On March 17, 2009, the City Council authorized staff to solicit proposals for professional audit services beginning with the audit for the fiscal year ending June 30, 2009. A Request for Proposal'(RFP) was posted on Lynwood's website and a notice inviting bids was published in the local newspaper. The RFP was also sent to eighteen firms. The City received seven proposals. Discussion & Analysis: Seven firms responded to the RFP. Staff reviewed each proposal and determined that all firms met the minimum qualifications and satisfied the requirements of the RFP. The following table summarizes each firm's fee proposal. 13 Proposerk Fees. ANNUAL FEG NAME OF FIRM 2009-10 2010-11 2011-12 3 Year Total Lance, Soll, & Lunghard, LLP $33,310 $33,600 $34,610 $101,520 Mayer Hoffman McCann P.C. 40,890 41,900 42,960 125,750 Caporicci & Larson, CPA 43,000 44,450 45,200 132,650 Vasquez & Company I_LP 49,500 49,500 49,500 148,500 Moss, Levy & Hartzheim, LLP 53,910 54,093 55,654 163,657 Price, Paige & Company 54,700 53,200 55,870 163,770 Roger, Anderson, Malody and Scott, LLP $59,000 $58,600 $59,400 $177,000 Selection of the firm to perform the City's and Agency's annual audit is very important. The annual audit is used, for example, by bond credit rating agencies to assist them in determining the fiscal heath of the City and Agency. Low-bid is not the most important criteria, and those that meet only the minimum qualifications may not meet the City's needs and expectations. It is critically important the firm selected have the highest qualifications, extensive experience auditing local government agencies, and a high level of professionalism and expertise. As indicated, all firms that responded to the RFP met the minimum qualifications, however, several firms stood out from the rest. Therefore, a panel consisting of the City's Finance Manager, Accounting & Auditing Supervisor and Assistant City Manager-Development interviewed the three firms who submitted to lowest fee proposals. Based on the depth and quality of each firm's written RFP response, experience, audit approach, responses in the oral interview and other related factors, the panel ranked the firm of Mayer Hoffman McCann as the most qualified firm. Mayer Hoffman McCann has extensive experience in local governmental auditing and indicated a clear understanding of the audit's objectives. The firm's proposal provided a systematic approach in examining systems and internal controls. The firm also provided a competitive fee, being the second lowest bid at $125,750 over a three-year contract period. The firm is a National CPA firm that is independently owned and operated through its 193 shareholders. The firm began its practice in Kansas City, Missouri in 1954 and expanded into a National Practice. It currently operates from 30 offices throughout the United States. Some of its office locations are in Irvine, Los Angeles, Bakersfield, Oxnard, San Diego and San Jose. Its Western Region offices have more than 425 professional accounting and audit personnel. Some of the 90 cities served by Mayer Hoffmann McCann include Burbank, West Covina, 2 Costa Mesa, San Gabriel, Commerce, Southgate and hell. It is the largest of the Yhree fines interviewed, in terms of offices and number of employees. The firm has extensive e>:perience with redevelopment agencies which includes assistance in the accounting for developer disposition agreements (DDA's), computation of obligations under pass-through agreements, and consultation regarding low-moderate income housing requirements. Additionally, the firm has assisted cities in the preparation of award winning Comprehensive Annual Financial Reports. Mayer Hoffman McCann has also assisted the City recently, having conducted the audits of the City's financial services, which led to several recommendations designed to streamline the payment process system, and the audit of the City's towing operator. In that regard, they are already somewhat familiar with the City's financial systems, records and accounting structure, making the transition to new auditors less time intensive on City staff. Fiscal Impact: The fee for the first year is $40,890 and total fees for the three years of the contract are $125,750. The annual fee is included within the Finance Department's budget. Coordinated With: City Manager's Office City Attorney's Office Attachments: (1) Resolution (2) Technical Proposal (3) Cost Proposal 3 RESOLUTION NO. A RESOLUT6OC~f 01= T(~E CITY COUNCIL OF THE CITY OF !_YNWOOI AWARDIFJG A THREE-YEAR CONTRACT FOR PROFESSIONAL AUDIT SERVICES FOR THE CITY OF LYNWOOD, LYNWOOD REDEVELOPMENT AGENCY AND LYNWOOD INFORMATION INC. BEGINNING WITH FISCAL YEAR ENDING JUNE 30, 2009 TO THE FIRM MAYER HOFFMAN MCCANN WHEREAS, the City of Lynwood solicited bids for professional audit services, and seven firms submitted their proposal; and WHEREAS, an internal panel interviewed several firms and determined that Mayer Hoffman McCann P.C. was the most qualified firm to perform the audit services required; and WHEREAS, the accounting firm of Mayer Hoffman McCann P.C. has extensive audit experience in governmental area and provided competitive fees; and WHEREAS, Mayer Hoffman McCann will provide professional audit services at $40,890 for the initial year and $125,750 for three years; and WHEREAS, in addition to providing professional audit services, the fee includes the preparation of State Controller's Reports and Statement of Indebtedness. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES HEREBY FIND, ORDER, AND RESOLVE AS FOLLOWS: Section 1. That the City Council awards athree-year professional auditing services contract to Mayer Hoffman McCann P.C., with the option to extend the contract for two additional years. Section 2. This resolution shall become effective immediately upon its adoption. PASSED, APPROVED AND ADOPTED this day of , 2009. Maria T. Santillan, Mayor 4 ATTt~~T: Maria Quinonez, City Clerk APPROV~Q AS TO FORM: Fred Galante, City Attorney APPROVEQ AS TO CONTENT: Roger L. Haley, City Manager 5 our- ~~~® ~ ~e I Prepared exclusively for: CITY OF LYNWOOD (Technical Proposal) heY •~ Kzi ~4f S ~~ v %. PROPOSr1L OF INDEPENDENT fd £IDIT ,SERVICES TO THE CITY OF LYNWOOD, Cf1LIFORNL4 Submitted by: MAYER HOFFMAN McCANN P.C. CONRAD GOVERNMENT SERVICES DIVISION 2301 DUPONT DR., SUITE 200 IRVINE, CALIFORNIA 92612 APRIL 13, 2009 CONTACT PERSON -JENNIFER FARR, SHAREHOLDER PHONE NO: (949) 474-2020, EXT. 301 FACSIMILE NO: (949) 263-5520 EMAIL: jfarrm,cbiz.com WEBSITE: www.mhm-pc.com MAYER HOFFMAN McCANN P.C. CALIFORNIA LICENSE NO. CORD 5091 Mayer Hoffman McCann P.C. An Intlepentlen~ CPA Frm MAYER HOFFMAN McCANN P. C. FEDERAL IDENTIFICATION NO. 43-1947695 our r®®~S run deep 'I'I;t'~IIdIICAI, L''IZC~A'OSAI, dL+' t~Ul<AY'L' SI;IB~'fC)'i;S 't'Q 'FFY]N CFT"a' OF L°r'Nt~'fT®YA 'I'ABL.E DF CE3IVTTENTS Section Page MAYER HOPFMAN 1\QcCANN P.C. A About Mayer Hoffman McCarm P.C. 1 B Our Prior Experience Auditing Cities, Redevelopment Agencies, Housing Authorities and Other Local Government 3 C References of Local Government Clients 8 ENGAGEMENT TEAM PKOFILE D Qualifications and Related Experience of the Personnel who will Service the City of Lynwood 9 SCOPE OF WORK ANB APPROACH E Approach, Timing and Work Prograrn of Our Engagement Team ] 0 F Our Firm's Understanding of the Objectives and Scope of the Engagement 18 BIOGRAPHIES Resumes of Audit Engagement Team CONCLUDING COMMENTS Mayer Hoffman McCann P.C. Peer Review Report An Pndepencient CFA fi~'m 2301 Dupont Crive, Suite 200 Irvine, Califm'nia 92612 949-474-2020 ph 949-263-5520 fx www.mhnrpc.com April 13, 2009 City of Lynwood Maria Quninaiez, City Clerk 11330 Bullis Road Lynwood, CA 90262 Mayer Hoffman McCatm P.C. is pleased to respond to your request to serve as the independent auditors for the City of Lynwood for the fiscal years ending .Tune 30, 2009 to 2011 "With optional extensions tlu'ough 2013. While we are aware that the City of Lynwood has solicited numerous proposals, Mayer Hoffman McCann P.C. (MHM) would be your best selection for the following reasons which are set forth in greater detail in our proposal: • Mayer Hoffman McCam7 P.C. is a national CPA firm. In California, Mayer Hoffman McCann P.C. has offices in Los Angeles, Oxnard, Bakersfield, Irvine, San Diego and San Jose. More than 400 accounting and audit professionals serve clients from the California offices. • The government services practice of Mayer Hoffman McCarm P.C. is headquartered in Irvine, California and represents the former CPA practice of Conrad and Associates, L.L.P. • The Irvine office of MHM currently serves approximately 90 California municipal clients, including serving as independent auditors for 51 California cities. We also serve the redevelopment agencies of those cities. • MHM.'s audit team of Jennifer Farr, Engagement Shareholder, Ken AI-Imam, Teclmical Review Shareholder, Jason Al-Imam, Engagement Manager, and Andy Jimenez, Engagement Senior, have a proven track record in serving Califomia cities, redevelopment agencies, special districts and authorities. • Because this same audit team has provided services to the City of Lynwood in the past, we are familiar with your internal controls, accounting system, and accounting staff. This knowledge would minimize the aniount of staff time need to "train" new auditors. • In addition to providing extensive local government and other audit and information technology training for our staff, Mayer Hoffman McCann provides an annual Governmental Accounting Standards Board (GASB) Technical Update each spring for our clients. • We understand the scope of work to be performed and we can and will deliver the services desired by the City of Lynwood. • We believe that our fee estimate and structure will assure the City of Lynwood of a fair and reasonable cost (based upon the experience of our audit team) to perform the annual audit examination for the City. Cii~~~ of Lynwood Page Tt%,~o 112ayer Hoffinan It/[eCanu P.C. adheres to the strici quality control measures and high professional standards of the Public Company Accounting Oversight Board (PCAOB), the American Institute of Certified Public Accountants (AICPA) and California State Board of Accountancy. MIdM is a member of the AICPA's Center for Public Company Audit Firms, Employee Benefit Plan Audit Quality Center; Govermnental Audit Quality Center azid the AICFA's Private Company Practice Section (PCPs). Ms. 3ennifer Parr, Shareholder, and Mr. Ken Al Imam, Shareholder, are authorized shareholders of Mayer Hoffinan and are authorized to bind our Firm in contractual matters with the City of Lynwood. Ms. Fan and Mr. AI-Imani aze also authorized to make representations for the Finn to the City of Lynwood. Mayer Hoffman McCami P.C. and all key persom7el are licensed and in good standing with the California State Board of Accountancy to practice as independent certified public accountants. Additionally, Mayer Hoffinan McCann P.C. is independent with respect to the Ctiy oI~ Lynwood within the Government Auditing Standards. Mayer Hoffinan McCarui P.C. is an Equal Opportunity Employer. We are committed to providing outstanding service to the City and in meeting the requested time deadlines. Mayer Hoffman McCann P.C. thanks the City of Lynwood for the opportunity to present our proposal qualifications and for the opportunity to be appointed as your independent auditors. Our proposal remains a firm and irrevocable offer for 90 days. I loop forward to you contacting me so that I may answer further any questions which you may have. You may contact me at (949) 474-2020, Ext. 301. Very truly yours, MAYER HOFFMAN McCANN P.C. ~~ ,Tennifer Fan, C.P.A. Shareholder ~ > F 3~ trc _ ~3Y {~- .f ~ ~ Y k 4• _ ~ ~ _ l ~L _ t f e _ ~~ _ . ~ ~ YrE"~ l~a~er I-~~ffrnan McCann P®C, S~C~'dOTd t~ AB®> IT' li~E4~'P:R HOF'>i<I~:l~N I+/feCAhIN P'.C, Mayer Hoffman A4cCatnr P.C. is a National CPA Fain. "the firm is independently owned and operated through its 193 shareholders. The firm began in Kansas City, Missoari in 1454. After years of steady growth the Firm expanded into a National Practice. Mayer Hoffinan McCann P.C. currently operates frour 30 offices throughout the United States and is licensed in 48 States. Mayer Iloffinan McCann P.C. is closely aligned with CBIZ (NYSE:CBZ). The I93 shareholders in 29 Mayer Hoffinan 1VIcCann P.C. off ces direct i:he resources of approximately 1800 Accounting and Audit professionals who services the attest clients of Mayer Hoffman McCann P.C. The Western Region Office of Mayer Hoffman McCann P.C. work closely together in servicing clients and. sharing professional resources among offices. Those offices locations are as follows: • Irvine California (Government services headquarters) • Irvine, California (SEC services headquarters) • Los Angeles, California • Bakersfield, California • Oxnard, California • San Diego, California • San Jose, California • Salt Lake City, Utah • Phoenix, Arizona • Tucson, Arizona The Western Region offices have more tihui 425 professional accounting and audit persotmel available to the 56 shareholders of Mayer Hoffman McCann P.C. in the ten Western Region offices. ~ - The Irvine govermnent services headquarters commenced on January 1, 2006 with the merger of Conrad and Associates, L.L.P., a 35 year old CPA firm which has been nationally and locally recognized for its expertise in Governmental Accounting and Auditing. The Irvine office develops the government audit programs and provides governmental technical expertise and training for Mayer Hoffman McCann P.C. on a national level. National and Local Government Expertise is directed through the following shareholders of Mayer Hoffman McCann P.C. who devote their time to servicing governmental clients: • Michael A. Harrison, Managing Director/Shareholder • Ken Al-Imam, Shareholder • Jennifer Farr, Shareholder • Marcus Davis, Shareholder • Ronald Rolwes, Shareholder Mayer Hoffman McCann P.C. is a National CPA Firm and ranked among the top 10 Accounting Service Providers in the country. MHM adheres to the strict quality control measures and high professional standards of the Public Company Accounting Oversight Board (PCAOB), the American htstitute of Certified Public Accountants (AICPA), and the California State Board of Accountancy (as well as other states when applicable). Our Firm is a member of the AICPA's Center for Public Company's Audit fines, Employee Benefit Plan Audit Quality Center, Governmental Audit Quality Center and the AICPA's Private Company Practice Section (PCPs). TI'~lLl7~ilNG ltND PEER IZ;t~IE~%d As a member of the Private Companies Practice Section and PCAOB our audit. procedures and working papers are regularly examined by another CPA firnr iu the frm-on-Eton peer review program. In addition, all aspects of the firm's quality eontr~ol practices have been reviewed, including the firm's eomrnitrnent to extensive training programs. hi every member firm, each member of the professional staff roust em~oll in continuous professional education courses. Each is required to take at least 120 hours of classes over a three-year period. Courses cover a wide spectrum of professional and technical subjects, and include Fraud Auditing, Professional Ethics and Governmental Accounting and Auditing topics to help the practitioner maintain his/her professional oxpetl:ise. Individuals working on yellow book engagements are also required to talce at least 24 hours of goverruneut specific courses each year. T'he Irvine office goes above and beyond this requirement by providing 40 hours of government specific training every year. A copy of Mayer Hoffman McCann P.C.'s Quality Control Review report for the year ended June 30, 2008 is included at the end of our technical proposal In all instances of Peet Review both Mayer Hoffman McCann. P.C. has never had a record of substandard audit work. Additionally, the results of field audits and desk reviews by Govenunent Agencies and other Regulatory Agencies of Governmental audits conducted by our Firm have always indicated that our audit work met the requirements of documentation. No disciplinary actions have been taken or are pending against our Firm during the past three years. INDEPENDENCE With respect to the City of Lynwood, Mayer Hoffman McCann F.C. meets the independence requirements of generally accepted accounting standards and Government Auditing Stm~dards (2007 revision) published by the U.S. General Accounting Office. ,. ~s~C'I'~~sl~ >ro Mayer Hoffman McCann P.C. is vastly experienced in the audits of local goveuunent units (all funds audit examinations of cities including single audits performed under OMB Circular A-133, financial and compliance audits of California Redevelopment Agencies, audit exatinations of public housing authorities, joint powers authorities and special districts). Amaig the local govenunent entities which the Irvine office has served dw~ing the past fiscal year are the following: All Funds Examinations of California Cities Los Angeles County City of Bell City of Beverly Hills City of Burbuilc City of Carson City of Commerce City of Culver City City of Hawaiian Gardens City of La Verne City of Lomita City of Pasadena City of Rosemead City of San Gabriel City of Santa Monica City of South Gate City of Temple City City of Torrance City of West Covina Orange County City of Aliso Viejo City of Costa Mesa City of Fountain Valley City of Laguna Beach City of Laguna Niguel City of Laguna Woods City of La Palma City of Newport Beach City of Orange City of Rancho Santa Margarita City of Seal Beach City of Villa Park ~6saLL ~ee~€F +C~~oetnfi.~~ CitS~ of Carlsbad City of ll Cajon City of I/scondido City of National City City of Santee City of San Marcos Cin~ of Solana Beach Riverside bounty City of Hemet City of Indio City of Indian Wells City of'Raucho Mirage City of Riverside San Bernardino County City of Highland City of Redlands City of Upland City of Yucaipa City of Yucca Valley Other Counties City of Campbell City of Gilroy City of Goleta City of Hayward City of Oxnazd City of San Bruno Experience with Redevelopment Agencies The Irvine office of Mayer Hoffman McCann, P.C. currently or has previously performed financial and compliance.audits of the following redevelopment agencies: Pasadena Redevelopment Agency Culver City Redevelopment Agency Indio Redevelopment Agency Brea Redevelopment Agency Santa Ana Redevelopment Agency Buena Park Redevelopment Agency Rancho Mirage Redevelopment Agency Stanton Redevelopment Agency Rialto Redevelopment Agency San Marcos Redevelopment Agency Azusa Redevelopment Agency South Gate Redevelopment Agency Maywood Redevelopment Agency Burbank Redevelopment Agency 1~ ~~Se¢°ee~hs e v~ utGx 1~~c~e~~c,~oFiarrgrrt l~~eFecaa_s; CEtet~fescn~:c~ La Palma Redevclopment Agency Downey Redevelopment Agency Temple City Redevelopment Agency San 3acinto Redevelopment Agency+ Westminster Redevelopment Agency Norwalk Redevelopment Agency Patin Springs Redevelopment Agency Carlsbad Redevelopment Agency Cathedral City Redevelopment Agency Desert Hot Springs Redevelopment Agency Fscondido Redevelopment Agency Banning Redevelopment Agency Redlands Redevelopment Agency La Verne Redevelopment Agency Gilroy Redevelopment Agency Hemet Redevelopment Agency Highland Redevelopment Agency Costa Mesa Redevelopment Agency Delano Redevelopment Agency Whittier Redevelopment Agency San Carlos Redevelopment Agency Bell Redevelopment Agency Hesperia Redevelopment Agency Orange Redevelopment Agency San Clemente Redevelopment Agency La Puente Redevelopment Agency Victorville Redevelopment Agency Arcadia Redevelopment Agency Santa Monica Redevelopment Ag ency Torrance Redevelopment Agency Goleta Redevelopment Agency Yucaipa Redevelopment Agency Mission Viejo Redevelopment Agency Our experience with redevelopment agencies is extensive and includes the following: • Assistance in the accounting for developer disposition agreements (DDA's) and owner participation agreements • Computations of obligations under pass-through agreements • Assistance in the use oftax-sharing agreements as an economic incentive • Consultations regarding the financial benefit to the City resulting from redevelopment activities • Tax increment financing of projects • Consultations regarding low-moderate income housing requirements • The establishment, merging, and adding of project areas • The use of rehab loans in redevelopment agencies • Assistance in issuuice (and refundings) of Tax Allocation Bonds • The establishment of redevelopment fund structure • Use of City loans and advances ~;~P1~IZl~l'~C~ `VVI'~'~i AG~+)ED ><JPOhI PR~kC'~k~IUF~E~ ~1lT17 C®MPTLIAI~lC~±, A~lb~)<'1<'B1Vf= In addition to our atmual auditing services, we have assisted our clients by performing both attest services and various management advisory and other accounting services, including: ® Audits of transient occupancy taxes • Reviews of cash receipting and water billing systems • Special fraud audits • Audits of waste management contracts • Other gross receipts audits (cable television franchise fees, excavation tax, etc.) • Contractual agreement compliance audits • Review of central purchasing systems • Review of warehouse controls and inventory systems • Reviews of cash controls in parks and recreation departtiients • Review of investment policies and investment compliance • Special I/DP reviews • Review of permitting process within city building departments • Analysis of investment yields • Assistance in presentations to city councils • Assistance in setting up special accounting systems for redevelopment agencies • Assistance to Bond underwriters in providing "comfort letters" on debt issues of municipalities • Consultations regarding the maximizing of tax increment revenue for redevelopment agencies ' • Organizational review of finance departments • Tax advice regarding defereed compensation, employee benefits; use of city vehicles, etc. • Preparation of State Controller's Reports • Preparation of California Street Report • Assistance in cash reconciliation problems • Determination of the cost of excess sewer capacity for adeveloper/city contractual arrangement • Assistance in the selection of qualified finance personnel for employment by the City 6 ~F~;~;'f'i~ST`d C l~A'1'<,f:k;i~~'~~S ~F ~.fPf ~A, G€~V!!.Y~dliy~.I~''L G'~.~1?.1V~'S For your convenience, we have listed below references with regard to audit work currently being performed by the Conrad Govermnent Services Division of Mayer Hoffinan McCatm P.C. for several local govermnents in Southern California. For each of the references, we currently serve as independent auditors for the year ended ,Tmie 30, 2008 and have served these cities for a number ofyears. Nance of f~lie~rt/Contact 1. City of Burbank Dino Balos Accounting Manager (818) 238-5500 dbalo s ~u,ci. burbank. ca. u s 2. City of W est Covina Denise Bates Accounting Manager (626)939-8463 denise.bates(a~westcov. org 3. City of Costa Mesa Marc Puckett Finance Director (714) 754-5243 mpuckett ,ci.costa-mesa.ca.us 4. City of Cormnerce Vilko Domic Finance Director (323) 838-4243 vilkodna,ci. commerce. ca. us 5. City of Bell Lourdes Garcia Director of Administrative Services (323)588-6211 lgarciana,cityofbell.or~ Atrns'oxiouate E4nnreal Bnc-~et $700 million $130 million $120 million $70 million $40 million S ~y { w~ i ~4 ~ ~t ai tpi' 4 `"A~.s ~..>l L y .Z a ~ 1., Yk~" En~~ge~lent 'Teams Prof~Ie ,~>1~;CTr~rr >a The successful outcome of arty audit regitii-es persomnel with the managerial and technical skills to perform the work requn-ed. The engagement team who will serve the City of Lynwood have served Cogether as a team of professionals on numerous fuiancial audit exanunations of local govermnent entities, including complex goveriunental agencies. We believe that efficient administrative management and supervision of the audits is an extremely critical factor ui achieving, the desired results for the City Council of the City of Lynwood. Ms. Jennifer Farr, Engagement Shareholder, who has twelve years of local govenvnent auditing experience, will be responsible for the coordination of the audit of the City of Lynwood and fulfillment of the requirements of the City Council of the City. Ms. Farr, as the Engagement Shareholder, will be in the field to plan and coorduzate the management of the audit examinatiou of the City of Lynwood. She will work closely with Robert Torrez and the Finance Department staff and be responsible to the.City Council of the City. She has served as a reviewer for the CSMFO award program for CAFR's, has been a speaker on matters pertaining to technical issues and new GASB pronouncements. Ms. Farr is also responsible for national level training in the area of local government accounting and auditnig. Mr. Ken Al-Imam will serve as Technical Review Shareholder. In this capacity, Mr. Al-Imam will act as a Technical and Consulting Shareholder to Ms. Farr and Robert Torrez. As a second shareholder revtewer, he will perform quality control reviews of audit reports issued by our firm. Ml-. AI- Imam is past Chairman of the state-wide "Governmental Accountnrg and Auditing Conunittee" for the California Society of Certified . Fublie Accountants. He is also an active member and past president of CCMA (California Committee on Municipal Accounting). He has made presentations ni public hearings before the Governmental Accounting Standards Board (GASB) and has been part of the committee contributnzg to the past two GASB implementation guides. Mr. Jason AI-Imam will serve as Engagement 1~Ianager of the audit of the City of Lynwood. He will work closely with Ms. Farr, Mr. Jimenez, Senior Auditor, the Finance Department personnel He will plan and review all audit work. Mr. Al-Imam has five, years of local government auditing experience, including performing as Engagement Manager on numerous city, redevelopment agency, special district and authority audits. Mr. AI-Imam is also a presenter at the firm-wide training for the in the area of local governmental accounting and auditing. Mr. Andy Jimenez will serve as the Senior Auditor. He will work closely with the Finance Personnel and Mi-. Al-Imam, Engagement Manager. Mr. Jimenez will supervise and review all work of accountants in the field with him. Mr. Jimenez works exclusively in the area of local government and non-profit auditing and is the- current Senior Auditor on the City of Commerce and the City of Riverside. Please re/er to Biographies section fm' specific client experience for each audit team member. _ y~~. ~ l ~ ,~e" 3K' ' r y.m ~~ ,~' ~ ~ ,., Y u „ft ~" ~ 2 - s ~' ae e r - I fA ! ~ r. ~ z ,. ,~ ~ ~~ ~ ~^~ , a Sc®pe ®f ~rl~ ~ Appr®ach SECTION 11 ~Y"I'IIt~~S,~Ii, TI;ftYFNG ANI2~ ~JU~BI~ PRIDGRAIVT G !+ €)UR EN~.~G~MI;N'I` TIi,A1~2 The audit approach of Mayer Hoffman McCarrrr P.C. is unique with regard to the following: • Our firm is sensitive to the priorities and work requirements of our clients. We work around the schedules of our clients when scheduling segments of the audit or requesting documentation in order to minimize disruption in the Finance Bepartment. • Whenever possible, we use accounting support already prepared by the Finance Department in order to avoid duplication or um2ecessary requests for audit supporting schedules. • Because of our firm's expertise in local governmental auditing, our staff are trained and familiar with local government accounting. You will spend no time in training our personnel • When formulating internal control recommendations, we obtain a thorough understanding of the specific circumstances at your City in order to provide a tailored, practical recommendation. • Throughout the year we are a resource to our clients in providing accounting advice, researching technical questions, dealing with tax problems, and helping with other problems as they arise. AUDIT PLANNING PROCEDURES Following our appointment as auditors of the City, Ms. Farr, Engagement Shareholder, and Mr. AI-Imam, Engagement Manager, will meet with Mr. Robert Torrez, Assistant City Manager and other key Finance Department staff for the purpose of planning the audit of the City. Ms. Farr will also meet with City Council during the planning stages of the audit in accordance with SAS 114. In addition to establishing an effective and efficient communication link with City personnel, the following will be accomplished: - Dates for audit field work of the various audit examinations will U~'finalized. - Arrangements will be made with City personnel for the typing of confirmation requests. - We will determine a materiality level for the financial statements taken as a whole for the purpose of: a) Determining the extent and nature of risk assessment procedures b) Identifying and assessing the risks of material misstatement c) Determining the nature, timing, and extent of further audit procedures; and d) Evaluating whether the financial statements are presented fairly in conformity with generally accepted accounting principles We vdll perfox-~n a risk asscssmcut of the City of L}mv~+ood to comply with the r~ewiv issued suite. of auditing standards. Our risk assessment will include t:he following: Understanding the Cit}= of Lynwood aucd Its F'nvie°onment We will gather information about the City of Lynwood and each of its related entities. This will include prior audit reports and current }year budgets. Our understanding will include: • External Factors -affecting the City and its related entities including the State and Federal regulatory environment and enviromnental requirements that affect tlxe City, Agency, and other related entities. • Nature of City of Lynwood -its operations, governance, types of investments it makes and plans to make, bonded indebtedness it has or plans to finance. • Strategies and Business .Risks -which may result in material misstatement of the financial statements as a whole, or individual assertions • Measurement and Review of Financial Performance - we will determine with management those indictors which Cify and Agency management believe to be important. • Internal Controls -which consists of five components (as identified by SAS #109) a. The Control Environment b. Risk Assessment c. Information and Communication d. Control Activities and e. Monitoring We will initially focus on the following accounting cycles of the City: • Cash Receipting; • Treasury Management; • Infrastructure and Capitalization of Assets; • Purchasing; • Accounts Payable and Cash Disbursements Cycle; • Payroll Cycle/Human Resources; and • Information Systems. These components may operate at the entity level or the component unit business process activity level. Obtaining an appropriate understanding of internal control will require MHM Auditors to understand and evaluate the design of all five components of internal control and determine whether the controls are in use of the City of Lynwood and its related entities. Performing Risk Assessment and Other Procedures The audit procedures MHM will perform to obtain an understanding of the City of Lynwood and its internal control are referred to as risk assessment procedures. MHM will use the information we obtain by performing risk assessment procedures to support our assessments of the risks of material misstatement. Our risk assessment procedures will include: • Inquiries of management • Analytical procedures • Observation • Inspection of documents 10 Assessing ~ee•sus 'l'asting Cetautr°o@s If we have assessed controls as effective based upon our review of their design and an observation ghat they have been implemented (that is placed irr operation} based solely on that. assessment, MIdlt~i would not necessarily have an adequate basis for considering that control risk if low (or event moderate}. As past of our audit strategy MHM would consider further evidence of the effective operation of controls tlu'ough sufficient tests of controls to reach that conclusion. Financial Stafeanent Level and tlae Assertion Level Rislcs MHM will identify and assess the risks of material misstatement at both the financial statement level and relevant assertion level (Reference SA5 #109) Responding to Assessed Risks The risk assessment process culminates with N1HM's articulation of the account balances, classes of transactions or disclosures where material misstatements are most likely to ocean- given the unique circumstances of the City of Lynwood. This assessment of the risk of misstatement, which relates identified risks to what caai go wrong at the assertion level, provides a basis for designing and performing further audit procedures Further audit procedures are defined as tests of controls and substantive tests. Often a combined approach. using both tests of controls and substantive procedures (SAS #} 10) is au effective approach. Identification and Communication of Internal Control Matters The objective of our audit is to form an opinion on the Ciry of Lynwood's financial statements taken as a whole. Our objective is not to identify deficiencies in internal; however when control deficiencies are identified in the course of our audit and if they constitute significant deficiencies or material weaknesses, we will communicate in writing those deficiencies to management and the City Council of the City of Lynwood. This communication will be in the form stipulated by Stateanent on Auditing Standards No.1.12. INTERIM AUDIT PROCEDURES In conjunction with our planning of the engagement, we will perform our interim audit work which will be conducted starting in June 2009. Additional procedures that will be accomplished during our interim audit procedures include the following: Meet with finance staff to inform them of new accounting or,auditing standards that will impact the year end close. ' 2. Reviewing of minutes of the City Council Following up on unusual items noted from analytical procedures. (We will perform significant comparison and inquiry regarding fluctuations of revenues and expenditures by fund budgets versus actual). 4. Performing tests of investment compliance. 5. Reviewing of important contracts, debt issues, leases and joint power agreements. 6. Performing testing of cash disbursements to determine adherence to policies and internal controls. 11 7. Performing required compliance and hrte~nal conta•oi testing relating to the federal grant programs of the City, if any. 8. 'Testing Redevelopment Agency compliance acrd reviewing new pass-through agreements, redevelopment area plans, implementation plans, and developer agreements, i f applicable. 9. Providing the City with suggestions regarding the close of the City's books after year end. Orin assistance and comunmication in the closing of the City's books is expected to minimize the number of audit adjustments required after the close of City's books. YTJAR-AND SUBSTANTIPE PROCIJII~IJRLS In October 2009 (after the final closing of the books and preparation of final trial balances by City personnel for the year ended June 30), we will commence performing our year- end substantive audit. Our final examination will include tests which we deem necessary, including: 1. Confirnlation of cash and investment balances. 2. Testing of bank reconciliations. 3. Testing of GASB 40 investment disclosures. 4. Testing of allocations of interest income to the various funds. 5. Examination of support and subsequent receipt (if any) of significant receivable balances. 6. Analytical review of receivable balances 7. Testing of interfund borrowings. 8. Examination of interfund transfers and testing of transfers out of restricted funds. 9. Performing a search for unrecorded liabilities. 10. Testing of significant accrued liability accounts. 11. Testing of long term debt balances and debt covenants. 12. Analytical review of interest expense. ' 13. Consideration of support for compensated absences. 14. Examination of the valuation of claims and judgments. 15. Testing of additions and deletions to capital assets, including infrastructure. 16. Analysis of construction in process balances. 17. Testing of support for other significant assets and liabilities of the City. 18. Testing for the proper establishment of reserves and designations. 19. Review of significant events after year end (through the completion of our audit). 20. Review of attorney letters for significant legal matters affecting the City's financial position. 12 z,1. Testing of revenues and expenditures and )esser significant asset and liabihiy Balances through. analytical procedures and other substantive pro€:edures as necessar}~. 'Tl~e aforementioned tests are only a few of the tests performed during the examination and by uo means is it meant to be all inclusive. At the completion of the audits each year, Ms. Fan' and Nlr. Al-hnam will meet with Mr. Robert Torrez, Assistant City Manager to review our audit findings and any adjusting journal entries. OP/II3 A-I33 SIN~IlE AI)II~I'F PI80CIJI3IJI2ES As a part of ow' Single Audit for the years in which the entity expends greater than $500,000 in federal funding, we would supplement our approach with the following procedures iu performing the single audit. Re-review all pertinent federal and AICPA publications including: • The Single Audit Act Amendnsents of 1996 (Public Law 104-156) signed info law on .luly 5, 1996 and effective for the fiscal years ending on or after Jwte 30, 1997. This law amends the Single Audit Act of 1984 (Public Law 98-502) previously applicable to local gvemments; • OMB Circular A-133 entitled Audits of States, Local Covernments, and Non-Profit Organizations; • GAO Government Auditing Standards (Yellow Bool€), 2007 revision; • AICPA Audit and Accounting Guide Audits of State and Local Government Units and Statement of Position 98-3, Audits of States, Local Governments, and No[ jor-Profit Organizations Receiving Federal Awards; • SAS No. 74, Compliance Auditing Considerations in Audits of Goverrvnental Entities and Other Recipients of Federal Financial Assistance; • Revised Compliance Supplement for Single Audits of State and Loca! Governments; • Catalog of Domestic Assistance Programs; • OMB Circular A-87; and • OMBCirculanA-102. 2. Identify the federal programs administered by the City of Lynwood and the amounts expended during the audit period. , 3. Apply the risk-based auditing approach mandated by the Single Audit Act Amendments of 1996 (Public Law 104-156) and OMB Circular A-133 entitled Audits of States, Local Governments, and Non-Profits Organizations for the determination of major programs to be selected under the single audit process. As prescribed by the directives of the new single audit requirements, this will involve a consideration of the complexity of the program, prior audit findings, changes in personnel, the competency of personnel, the extent to which sub-recipients are used, the extent of overview and monitoring by granting agencies, the extent of recent changes in program requirements, the newness of the program, the size of the program, and the inherent risk of the program. 4. Identify the oversight audit agency. 5. Identify and list the major compliance supplements and sub recipients of the City, if any. 13 6. Review the administrative conf<ol systems to ensure compliance. 7. F,xecute the sampling plan. 8. Perform audit procedures for the selected hansactions. 9. Test compliance with the applicable 14 compliance areas. 10. Test matching requirements, if any. 11. Test indirect costs, if any. 12. Review reports and claims for advances and reimbursements to the federal government. 13. Review processing of audit reports for state and local government sub recipients. 14. Prepare the independent auditors' reports required by OMB Circular A-133. 15. Prepare the electronic submission of the data collection form required to be filed with the Single Audit Central Clearinghouse. IMPLEMENTATION OF NEW ACCOUNTING STANDARDS Over the term of the contract, the City will be required to implement the following accounting standards. The impact and approach to implementing those standards aze as follows: GASB Statement No. 51 -Accounting and Financial Reporting for Intangible Assets During the planning stage of the audit for the year ended June 30, 2009, we will discuss the implications of this standard with management of the City of Lynwood. If the standard is applicable to the City's activities, we will provide marked up copies of the applicable sections of the standard and provide guidance on the changes in accounting and disclosure to implement the standard. GASB Statement No. 52 -Land and Other Real Estate Held as Investments by Endowments We do not believe the City will be impacted by this standard. GASB Statement No. 53 -Accounting and Financial Reporting for Derivative Instruments During the planning stage of the audit for the year ended June 30, 2010, we will discuss with management of the City whether or not the City has any SWAP agreements or other derivatives that are applicable to the standazd. If the standard is applicable to the City's activities, we will provide marked up copies of the applicable sections of the standard and provide guidance on the changes in accounting and disclosure to implement the standard. Exposure Draft -Fund Balance Reporting and Governmental Fund Type Definitions During the planning stage of the audit for the year ended June 30, 2010, we will evaluate the City's current fund structure and make recommendations for compliance with the new GASB. We will inform the City of their options and rely on management to determine which changes will be made to either the internal or external reporting of fund balances and fund types. 14 l ~~?ta ~'~°ocassieeg~ ~xkaericnee ~g~d: ~:ale:zbi9itics L;~h audit team iu our firm is assigned and utilizes a por(Fable. persona] computer at the job site. We extensively use the computer in tkre conduct of o~u audit and in i:he preparation of the financial statements. Additionally, each of our audit Seniors are knowledgeable of controls surrounding the hDP envirotunent and assessing the effectiveness of those controls within the audit of the local government. Mayer Hoffman McCann P.C. utilizes CaseWare, a paperless auditing software that organizes audit documentation. We have the ability to accept audit documentation in either electt'onic or hard copy format. A edit Sampling In accordance with SAS No. 111, Audit Sampling, we will consider the tolerable misstatement and the expected misstatement, the audit risk, the characteristics of the population, the assessed risk of material misstatement, and the assessed risk for other substantive procedures when determining the number of items to be selected in a sample.- Analytical Procedures to Improve UnderstandinH of Client Analytical procedures may be used in both general plamiing and audit prograzn planning. SAS No. 56 describes the two broad uses of analytical procedures in audit planning as follows: )/nhancing the auditor's understanding of the client's business and. the transactions and events that have occurred since the last audit date; and Identifying areas that may represent specific risks relevant to the audit. Comparisons of account balances between accounting periods and ratio and trend analysis usually improve the auditor's understanding of the client and its operations and may identify critical audit areas, e.g., comparing general and special revenue fund expenditures by functions and revenue by source for the past two years provides an understanding of the governmental unit's operations and may identify a revenue source that requires increased attention in the current audit. Consideration of Laws and Regulations Our audit approach recognizes the importance of laws and regulations in planning the audit of a local governmental entity.' As a part of the audit, our firm obtains an understanding of those laws and regulations that have a direct and material effect on the detetminaftpn of financial statement amounts. We then design the audit to provide reasonable assurance of detecting material instances of noncompliance that will have a direct and material effect on the determination of financial statement amounts. Proposed Schedule for the Completion of Work Audit Task Timing Provide audit request for interim procedures Planning meeting with finance personnel Interim audit fieldwork Provide audit request for final procedw'es (including confinnafion instructions) May 25, 2009 June 8, 2009 June 8-June 19, 2009 (dates are flexible) June 19, 2009 is Audit Task Meel.ing to discuss results of interim Mailout of audit confirmations Final audit fieldwork Exit meeting with finance personnel In offace engagement wrap up Draft reports to finance personnel Final reports Presentation of audit results to Finance Committee and City Council Timm June 19, 2009 July 1, 2009 Oct 5-Oct 16, 2009 Week of Oct 12, 2009 Oct 19-23, 2009 by Nov 6, 2009 5 days after completion of City review As scheduled by City Segmentation of the Audit The following is our estimate of the hours by professional staff cIassifieation required for the audit: Professional Hours and Seementatioh of Audit Interim Final Total Percentaee Shareholder 10 30 40 9% Manager 10 40 50 11 Senior 60 120 180 40% Staff Auditor 60 120 180 40% Total 140 310 450 100% 16 ~l~~T~~N F Our understanding of the objectives and scope of the work to be perfornied is based upon your request for proposal. Based upon the foregoing we understand the objectives and scope of work to be as follows: L We will perform az1 audit examination of the financial statements of the Cits~ of Lynwood for the fiscal years ending Juue 3Q 2009 to 2011 with optional extensions tluough 2013. The Auditor will prepare the financial section of the report. The City will prepare management discussion and analysis, the introductory section, and the statistical section of the report. We will ensure that the CAFR is prepared in conformity with the most recent edition of the GAAFR and subsequent GASB pronouncements. We will copy and bind twenty-five reports. 2. We will perform a financial and compliance audit of the governmental activities, each major fund and the aggregate remaining fund information of the Lynwood Redevelopment Agency. Our audit will be conducted in accordance with auditing standards generally accepted in the United States, Government Auditing Standards and the Guidelines for Compliance Audits of California Redevelopment Agencies. We will prepare the financial statements and be responsible for making 25 copies of the report. 3. We will perform a financial audit of the activities of the Lynwood Information Inc. for the year ending June 30, 2009. Our audit will be conducted in accordance with auditing standazds generally accepted in the United States and Government Auditing Standards. We will word process and reproduce 10 copies of the report. 4. When necessary, we will perform a "Single Audit" of the City of Lynwood in accordance with the Single Audit Act Amendments of 1996 (Public Law 104-156) and OMB Circular A-133 entitled Audits of States, Locul Governments, and Non-Prrofits Organizations. The City will provide to the Auditors the Schedule of Federal Financial Assistance encompassing all direct and pass-through federal funds received by the City and component units. We will copy and bind 25 reports. 5. We will perform agreed-upon procedures to test and report on the .City's Gann Limit. 6. We will prepare a letter to the City Council reporting matters dealing with internal control that meet the threshold of being a significant deficiency or material weakness, as defined by SAS No. 112. We will immediately report any irregularities or illegal acts that come to our attention to the City Council. 7. We will also prepare a letter to City management that will provide other recommendations to the City ensuing from our review of the City's internal control procedures. This letter will address nonreportable conditions (those constructive comments not required to be included in the letter of significant deficiencies to City Council). 8. We will prepare the City of Lynwood State Controller's Report, the Lynwood Redevelopment Agency State Controller's Report, the Statement of Indebtedness, if requested by the State's deadlines. 17 9. V~Je desire to keep its local govermnent clients abreast of new developments affecting local govermnent &nance. V1~e will also advise City staff of new aceomrting developments during the interirn/plamiing stage of each year's audit. We plan on providing additional efient training to om- clients in our May 2009 eiient ri~aining conference with respect to new GASB pronouncements. 10. Finally, we perceive the scope of om~ work as being advisors to the City of Lynwood regarding generally accepted accounting principles. Throughout the year, finance personnel of the City, will have up to 40 hours of special assistance from Ms. Fan, Engagement Partner, Mr. Ken AI-Imam, Technical Review Par-lner, and Mr. Jason AI- Imam, Engagement Manager, to seek advice in the application of generally accepted accounting principles, the establishrnent and segregation of funds, advise regarding debt issuance, financial statement preparation and content, taxation issues, and other matters relating to the City. 18 O~ c ~ u,._ »[ ~ ~ ~ ~ Y ~~~ Y'•~~ A S~f " y ~1Q~~°~~~11~5. ,~ .I~IaINfFEI2 FAI..R, C.1'.A. 1!;re~a~enYent ~laxreholdee• California CPA Certificate No. 76292, October 1998 PROFESSIONAL EXPERIENCF, • 12 Years -Mayer Hoffman McCami Y.C. (formally Conrad and Associates, LLP) • 1 %z Years -Ronald Blue and Co. EDUCATION • Bachelor of Arts -Business Administration (Accounting) California State University, Fullerton • Bachelor of Arts -English California State University, Fullerton • Masters of Business Administration California State Unive~°sity, Fullerton RELATED EXPERIENCE Audits of California Cities (including Single Audits conducted under OMB Circular A-133 and Audits of Redevelopment Agencies) ' Performed for C~ Tempe of Audit Years Ended Burbank Annual Audit 06/05-06/08 Campbell Annual Audit 06/08 Commerce Annual Audit 06/06-06/08 Culver City Annual Audit 06/08 Haywazd Annual Audit 06/08 Highland Annual Audit 06/04-06/08 ~Ieneaifen° I<acn-n•, ~~:onrtinaeeed~ A-1.33 Performed for C~ Type of Audit Years Ended Fndian Wells Am1ua1 Audii 06/08 fountain Valley Amiual Audit 06/08 Pasadena Annual Audit 06/01-06/07 Palm Springs Aimual Audit 06/99-06/06 Rosemead Annual Audit 06/07-06/08 Sau ISruno Amiual Audit 06/08 Santee Annual Audit 06/05-06/08 Upland Annual Audit 06/03-06/08 West Covina Annual Audit 06/03-06/08 La Quinta Annual Audit 06/98-06/06 Mission Viejo Annual Audit 06/98-06/99 Apple Valley Annual Audit 06/99 Brea Annual Audit 06/97-06/98 Orange Annual Audit 06/97-06/98 Whittier Armual Audit 06/97-06/98 Hawaiian Gazdens Annual Audit ~ 06/97-06/98 San Clemente Annual Audit 06/97 Performed for Entity Tune of Audit Years Ended Orange County Sanitation District Annual Audit 06/05-06/08 Irvine Ranch Water District Annual Audit 06/03-06/08 Inland Empire Utilities Agency Annual Audit 06/08 3e~auifeo• I+a~•e, (C®tgtarru€d~ Performed fog Enti Type of Audit Years Ended Vista Irrigation District Annual Audit 06/08 Moulton Niguel Water District Amtual Audit 06/07-06/08 Cucamonga Valley Water District Amtual Audit 06/06 San Diego County Water Authority Amtual Audit 06/00-06/05 Rose Bowl Operating Company Annual Audit 06/01-06/08 Los Angeles Homeless Services Auth Annual Audii 06/J7-06/08 Coachella Valley Association of Governments Annual Audit 06/98-06/04 Orange County Water District Annual Audit 02/98-2/03 San Bernazdino Housing Authority Annual Audit 12/97 Big Bear Community Services District Annual Audit 06/97 Big Bear Area Regional Wastewater Authority Annual Audit 06/97 Chino Basin Water Conservation District Annual Audit 06/99 San Bernardino Housing Authority Annual Audit 12/97 PROFESSIONAL AFFILIATIONS ' Member of AICPA since 1998 Member of CAL CPA's Member of GFOA Member of CSMFO CONTINUING EDUCATION TRAINING ( Last Five Years) Date Sponsor To is 10/13-15/04 U.S. Dept of Education National Single A udit Sampling Project 4/27-29/05 Conrad and Associates, L.L.P. 2005 Local Governrnent Audit Training I 2/06 CSMFO 2006 Annual Con ference .%eettgefieu F'~ae•r, (Ce~esterare~~ CON'T'INUING EBUCATIOl~ TRAIIVING (bast Five ~'earsZ Date S onsor .f 5/3-4/06 Mayer Hoffinan McCamr P.C. Manager II Training 5/31/06 Ivlayer Hoffman McCann F.C. GASB Update 7/24-26/06 Mayer Hoffman McCami P.C. 2006 Local Goverrunent Audit Training 8/4/06 Mayer Hoffinan McCatm P.C. 2006 Tecluiology Champion Conference 8/9/06 Mayer Hoffinan McCarur P.C. Risk Assessment Tool Training 1/07 Mayer Hoffinan McCann P.C. Caseware Paperless Auditing Training 1/07 Mayer I-Ioffman McCaim P.C. 2007 Non-Profit Audit Training 3/07 CSMFO 2007 Annual Conference 5/07 Mayer Hoffman IvlcCatui P.C. 2007 GASB Update 6/07 GFOA 2007 Amiual Conference 7/07 Mayer Hoffman McCarm P.C. 2007 Local Government Audit Training 1/9/08 Mayei Hoffman McCann P.C. Risk Assessment Audit Training 1/10/08 Mayer Hoffman McCann P.C. Internal Controls and Fraud Protection 1/11/08 Mayer Hoffman McCann P.C. Accounting and Auditing Issues of Nonprofit Organizations 3/5-7/08 CSMFO 4/24-25/08 Mayer Hoffman McCann P.C. 5/28/08 Mayer Hoffinan McCarur P.C. 6/23-26/08 Mayer Hoffman McCann P.C. 7/23-25/08 Mayer Hoffman McCann P.C. 2008 Annual Conference 2008 Local (iovenunent;I'raining I 2008 GASB Update Accounting & Audit National Conference 2008 Local Government Training II I£Ir,N A)r~-IlYflA1VV;u. C.Ib.A. En~a~erraent ~u'ltareteolder California CPA Certificate No 32377E July 1981 EDUCATION B.A. -California State University, Fullerton (Accounting) Certified Public Accountant -California PROFESSIONAL EXPERIENCE 4 years -Conrad and Associates, L.L.P. (Senior Accountant) 5 years -Conrad and Associates, L.L.P. (Audit Manager) Z years -Conrad and Associates, L.L.P. (Senior Manager) I S years -Conrad and Associates, L.L.P . (Partner) 3 Years -Mayer Hoffman McCann P.C. (Shareholder) Total Auditing Experience - 29 years Total Supervisory Experience - 26 years RELATED EXPERIENCE The following is a summary of Mr. AI-Imam's related experience: Audits of California Cities Mr. AI-Imam has been directly responsible for the annual financial audits including single audits conducted under OMS Circular A-133 and GASB No. 34 implementations of the following entities: C~ City of Ton•ance (GASB No. 34) City of Pasadena (GASB No. 34) City of Costa Mesa (GASB No. 34) City of Upland (GASB No. 34) City of La Quinta (GASB No. 34) City of Laguna Hills (GASB No. 34) City of Santa Ana City of Newport Beach (GASB No. 34) City of Laguna Beach (GASB No. 34) Duties Performed Dates Performed Partner/Shareholder 06/03-06/08 Partner/Shareholder 06/01-06/08 Partner/Shareholder 06/91-06/08 Partner/Shareholder 06/03-06/06 Partner 06/92-06/01 Partner 06/98-06/04 Manager 06/84-06/86 Partner/Shareholder 06/00-06/08 Partner/Shareholder 06/98-06/08 i£eae AE~har~eree, (C€eerEcereeeeF} Audits of California Cities, (Continue Ci ~ lluties Performed Dates Performed City of Buena Park (GASB No. 34) Senior/Manager/Partner 06182-06/03 Town of Yucca Valley (GASB No. 34) Partner/Shareholder 06/02-06/07 City of Carson (GASB No. 34) Partner/Shareholder 06/02-06/07 City of El Cajon (GASB No. 34) Partner/Shareholder 06/02-06/06 City of Rialto Senior/Manager 06/82-06/89 ~;r,, of R.anc ii ~ Mirage (GASB No. 34) Partner/Shareholder 06/92-06/08 City of Carlsbad Partner/Shareholder 06/81-06/83, 06/93-06/01 06/06-06/08 City of Stanton Manager 06/83-06/87 City of Westminster Senior/Manager 06/81-06/86, 06/88-06/89 City of Azusa Manager/Partner 06/87-06/97 City of Banning Manager/Partner 06/87-06/91 City of La Verne (GASB No. 34) Manager/ Partner/Shareholder 06/88-06/08 City of San Marcos (GASB No. 34) Manager/ Partner/Shareholder 06/83-06/87, 06/99-06/08 City of Indian Wells (GASB No. 34) Partner ~ 06/97-06/02 City of Escondido Manager/Shareholder 06/83-06/88 6/06 City of Downey Manager 06/85-06/86 City of Norwalk Manager 06/86 City of Hemet Manager/Partner/Shareholder 06/89-06/08 f6en A9-&ntam, (C'oretnaraued) Audits of Califonia Cities, (Continued) City City of San Gabriel City of Gilroy (GASB No. 34) City of Santee City of Whittier City of La Puente City of Orange (GASB No. 34) City of Palm Springs (GASB No. 34) City of Burbank (GASB No. 34) Duties Performed Manager Manager/ Partner/Shareholder Partner/Shareholder Partner Partner Partner Partner/Shareholder Partner/Shareholder California Redevelopment Agency Audit Exuerience Agency. Costa Mesa Redevelopment Agency (GASB No. 34) Burbank Redevelopment Agency (GASB No. 34) Carlsbad Redevelopment Agency Torratrce Redevelopment Agency (GASB No. 34) Santa Ana Redevelopment Agency La Quinta Redevelopment Agency (GASB No. 34) Upland Redevelopment Agency (GASB No. 34) Buena Park Redevelopment Agency (GASB No. 34) Rancho Mirage Redevelopment Rialto Redevelopment Agency Westminster Redevelopment Agency Duties Performed Partner/Shareholder Partner/Shazeholder Partner Partner/Shareholder Manager Partner Partner/Shareholder Senior/Manager/Partner Partner Senior/Manager Senior/Manager Dates Pertormed 06/88 06/89-06/08 06/91-06/95 06/06 06/94-06/00 06!97-06/0]. 06/01-06/02 06/01-06/06 06/06 Dates Performed 06/91-06/08 06/06 06/81-06/83, 06/93-06/01, 06/06-06/08 06/03-06/08 06/84-06/86 06/92-06/01 06/03-06/06 06/82-06/03 06/92-06/04 06/82-06/89 06/83-06/87- 06/89 Deer Al-Icraaorr, (Gontixn€aed) Califoruia_P.edevelo1~meu1 Agency Audit Experien~~Continued) Agency Duties Performed San Marcos Redevelopment Agency (GASH No. 34) Manager/Partner Stanton Redevelopment Agency Downey Redevelopment Agency La Verne Redevelopment Agency (GASH No. 34} Norwalk Redevelopment Agency Azusa Redevelopment Agency Banning Redevelopment Agency Gilroy Redevelopment Agency Hemet Redevelopment Agency (GASH No. 34) Manager Manager MauagerlPariner/ Shareholder Manager Manager/Partner Manager/Partner Manager/Partner/ Shareholder Manager/Partner/ Shareholder Bates Performed 06/84-06/87 06/99-06/04 06/84-06/87 06/85-06/86 06/88-06/08 06/86 06/87-06/97 06/87-06/92 06/89-06-06 06/89-06/07 La Puente Redevelopment Agency Partner 06/97-06/01 Audits of Special Districts and Authorities Duties Dates Entity Name Type of Entity Performed Performed Santa Margarita Water District Special District Partner 06/04-06/08 Rancho California Water District Special District Partner 06/06-06/08 West Basin Mun. Water District Special District Partner 06/06-06/08 Orange County Sanitation District Special District Partner 06/06 Inland Empire Utilities Agency Special District Partner 06/01-06/08 Chino Basin Watermaster Special District Partner 06/96-06/08 Irvine Ranch Water District Special District Partner 06/03-6/06 San Diego County Water Authority Special District Partner 06/99-06/05 Coachella Valley Water District Special District Partner 06/00-06/08 I~eea Al-Irna~ae, (Conteeae~eal} Audits of Special Districts and Authorities, (Continued Duties Dates Entity Name Type of Entice Performed Performed Eastern Municipal Water District Special District Partner 06/02-06/08 San Elijo Joint Powers Authority Joint Powers Authority Partner 06/92-06/04 Elsinore Valley MWD Annual Audit Partner 06/03-06/08 Orange County Water District Special Dish~ict Partner 02/98-02/03 California Joint Powers Insm~ance Joint Powers Authority Partner 06/97-06/08 Authority Indep. Cities Risk Management Joint Powers Authority Partner 06/99-06/08 Authority LA Co. Contract Cities Liab. Trust Joint Powers Authority Partner 06/99-06/04 Fund Public Employees Risk Management Joint Powers Authority Partner 06/94-06/03 Authority Big Bear Regional Waste Management Joint Powers Authority Partner 06/94-06/06 Authority Water Facilities Authority Joint Powers Authority Manager/ La Quinta Public Financing Authority Capistrano Beach Sanitary District Partner Financing Authority Partner Special District Manager/ Partner 06/85-06196 06/92-06/01 06/85-06/95 Audits of Public Housine Authorities Authority Pasadena Housing Authority Santa Ana Housing Authority Norwalk Housing Authority Cazlsbad Housing Authority County of Riverside Housing Authority Baldwin Park Housing Authority Duties Performed Partner Manager Manager Senior/Partner Manager Manager/Partner Dates Performed 2002-2006 1984-88 1986-88 1982-84,1993-2001 1983-84 1983-84, 1995-98 LKe6r A LLnranp, (Continued} PROFESSIONAL AFFILIATIONS AND LEADERSHIP QUALITIES Mr. Al-Imam is a member of the American Tnstitute of Certified Public Accountants and the California Society of Certified Public Accountants. He is also a member of the California Society of Municipal Finance Officers (CSMFO) and the Ciovenunental Accounting and Auditing Committee of the Long Beach/Orange County Chapter of the Cal-Society of CPA's. Mr. AI-imam selves as Training Shareholder for the Conrad Govennnent Services Division of Mayer Hoffman McCarm P.C. He has spolwn frequently on technical topics to various sections and chapters and at the Annual Conference of the California Society of Municipal Finance Officers. Mr. Al-Imam has been a technical reviewer under the C5MF0 Award Program for excellence in Financial Reporting for the past sixteen years He recently served as the Statewide Chairman of the California Society of CPA's Govermmental Accounting and Auditing Comrittee and the CCMA (Califorua Committee on Municipal Accounting). the fallowing is a sumrnary of selected continuing education courses attended by Mr. Al-Imam during the past tlu-ee yeazs: Date Sponsor. 2/23-25/03 CSMFO 4/21-22/03 Conrad and Associates, L.L.P 7/23-25/03 Conrad and Associates, L.L.P 1/6/2004 Conrad and Associates, L.L.P 1/7/2004 Conrad-and Associates, L.L.P 4/22-23/04 Conrad and Associates, L.L.P 5/5/04 Conrad and Associates, L.L.P 7/26-27/04 Conrad and Associates, L.L.P 1/21/05 Conrad and Associates, L.L.P 4/24-4/26/05 Conrad and Associates, L.L.P TOpic Annual Conference 2003 Governmental Audit Training - Session I 2003 Governmental Audit Training - Session II SAS #99 Plarning the Audit for Fraud Detection Advanced Non-Profit Audit Issues 2004 Governmental Audit Training - Session I,.. Governmental Accounting Standards Update - 2004 2004 Governmental Audit Training - Session II Accounting for Local Revenue Realignments 2005 Governmental Audit Training - Session I 7/26-7/28/05 Conrad and Associates, L.L.P 2005 Government Audit Training - Session II I~eu Al-I~na~aa, (f~onnliaaree€I) PROFESSIONAL AFFILIATIONS AND LEADERSHIP pUALITIES (CONTINUED) Date Sponsor To is 1 /4/06 Mayer Hoffman McCann P.C. Fraud Audit Training 1/5/06 Mayer Hoffinan McCazui P.C. Accounting and Financial Reporting for Non-Profit Organizations 1/6/06 Mayer Hoffman McCann P.C. Technology Training -- Go Systems and PPC Engagement Manager (Electronic Working Papers) 5/31/06 Mayer Hoffman McCann Y.L. 'Government Accounting Standards Board Update 7/13/06 Mayer Hoffman McCann P.C. -Non-Profit-Organization Technical Update 7/24 - 7/26/06 Mayer Hoffman McCann P.C. 2006 Local Government Audit Training 1/4/07 Mayer Hoffman McCann P.C. CaseWare Electronic Audit Workpapers 1/5/07 Mayer Hoffman McCann P.C. MHM National Non-Profit Audit Training 3/7-3/9/07 CSMFO Annual Finance Officers Conference 4/17-4/18/07 Mayer Hoffman McCann P.C. MHM National Governmental Audit Training -Session I 5/30/07 Mayer Hoffman McCann P.C. MHM G?:SB Update - 2007 7/19-7/20/07 Mayer Hoffman McCann P.C. MHM National Not-for-Profit Industry Training 7/23-7/25/07 Mayer Hoffman McCatm P.C. MHM National Governmental Audit 1/9/2008 Mayer Hoffinan McCann P.C. Risk Assessment Audit Training (SAS 104-111) 1/10/2008 Mayer Hoffinan McCann P.C. Fraud Audit Training 1/11/2008 Mayer Hoffman McCann P.C. 2008 Non-profit Audit Training 3/06/08 California Society of Municipal Annual Conference Finance Officers (CSMFO) I~eea 14.@-hna€gn; ~Coca4i~euecF} PROFESSIONAL AFFILIATIONS AND LEADERSHIP QUALITIES, (CONTINUii~ Date S onsor Toptc 7/23-7/25/08 12/5/OS Mayer Hoffman McCa1m PC Mayer Hoffinan N1eCaiur PC Training -Session II 200& Government Audit Training MHM Accounting and Audit Update 3ASON AI.->jIVIA1~ Manager EDUCATION Bachelor of Arts -Business Administration -Vanguard University, Costa Mesa PROFESSIONAL EXPERIENCE 3 Years -Mayer Hoffman McCamr P.C. -Manager 2 Years - Com~ad and Associates L.L.P. -Senior Auditor RELATED EXPERIENCE Mr. AI-Imam has been assigned responsibility for mm~erous audits and special assignments. This experience has encompassed financial and compliance audits of governmental and non- profit engagements, which have been performed in accordance with "Government Auditing Standards." Each of these audits has entailed a review of the entity's internal control and financial management system. Audits of California Cities (including Single Audits conducted under OMB Circular A-133 and Audits of Redevelopment Agencies) City Type of Audit Pasadena Annual Audit (GASB #34) Riverside Annual Audit (GASB #34) National City Annual Audit (GASB #34) Hawaiian Gardens Annual Audit (GASB #34) La Verne Annual Audit (GASB #34) Rosemead Annual Audit (GASB #34) Palm Springs Annual Audit (GASB #34) Carson Annual Audit (GASB #34) San Bernardino Annual Audit (GASB #34) Upland Annual Audit (GASB #34) Performed for Years Ended 06/04 - 06/08 06/08 06/05 - 06/08 ,. 06/04 - 06/08 06/05 - 06/08 06/08 06/04 06/04 06/04 06/04 .Ias€srE Al-lnrrcecry ~CorQEian~aeEl~ Audits of S~7ecial Districts and Authorities including Single Audits conducted under OMB Circular A-133) Enti Independent Cities Risk Management Authority Performed for T~~pe of,4udit Years Ended Annual Audit 06/06 - 06/08 Elsinore Valley Municipal Water District Inland Empire Utilities Agency San liabriel Valley Mosquito and Vector Control District Los Angeles County Contract Cities Liability Trust Fund Sazi Gorgonio Pass Water Agency Amiual Audit 06/05 Annual Audit 06/05 Annual Audit 06/05 Annual Audit 06/03 - 06/04 Annual Audit 06/04 Agreed Upon Procedure Enna eg meets Entity City of Lynwood Description Agreed-upon procedures applied to the design and effectiveness of internal controls City of Lynwood Orange Corruty Sanitation District Inland Empire Utilities Agency Department of Justice Agreed-upon procedures applied to towing services ~, Audit of Extended Overhead Costs Connection Fee Audit Various audits of Chapter 7 bankruptcy cases Audits of Nonprofit Organizations (including Single Audits Conducted in Accordance with OMB Circular A-133 ) Nonprofit Organization Type of Audit Performed for Years Ended California Chapter 4, American Academy of Pediatrics Annual Audit 05/07 - 06/08 .Taso~€ AI-Innam, (Continued} Audits of Nonprofit Oi~anizations (including Single Audits Conducted in Accordance with OMB Circular A-133) (Continued) Performed for Nonprofit Organization Tyi~e of Audit Years Ended Substance Abuse Foundation of Long Beach Annual Audit 06/06 -06/08 Costa Mesa Conference & Visitor Bureau Amlual Audit 06/07 Teen Challenge of Southern California Anm~.al Audit 03/06 - 03/07 Mariposa Women & Family Center Annual Audit 06/05 - 06/07 Orange County Community Housing Corporation Amiual Audit 12/04 - 12/06 St. Andrew's Presbyterian Church of Newport Beach and Horizons Foundation Annual Audit 12/04 - 12/07 CONTINUING EDUCATION TRAINING Date Sponsor 4/22-23/04 Conrad and Associates, L.L.P 7/26-28/04 Conrad and Associates, L.L.P 4/24-26105 Conrad and Associates, L.L.P 7/26-28/05 Conrad and Associates, L.L.P I/4/06 Mayer Hoffman McCann P.C. 1/5/06 Mayer Hoffman McCann P.C. To is 2004 Local Goverrunent Audit Training- Session I 2004 Local Government Audit Training - Single Audit Training -Session II 2005 Local Government Audit Training - Session I 2005 Local Government Audit Training - Session II Fraud Audit Training Accounting and Financial Reporting for Non-Profit Organizations mason A[-Isna€ix9 (CanUi~uued} CONTINUING EDUCATION TRAINING, (Continued) Date Sponsor 1/6/06 Mayer Hoffman McCaim P.C. Top1c Information Teclurology Training - Go Systems and Engagement Manager 7/24-26/06 Mayer Hoffman McCaiur P.C. 1/4/07 Mayer Hoffman McCann P.C. 1/5/07 Mayer Hoffman McCarm P.C. 4/17-18/07 Mayer Hoffman McCain P.C. 7/23-25/07 Mayer Hoffman McCatm P.C. 1/09/08 Mayer Hoffman McCann P.C. 1/10/08 Mayer Hoffman McCanm P.C. 1/11/08 Mayer Hoffman McCann P.C. 4/24-25/08 Mayer Hoffman McCann P.C. 7/23-25/08 Mayer Hoffman McCann P.C. 1/22-23/09 Mayer Hoffman McCann P.C. 2006 Local Govermnent Audit Training - Single Audit Training Information Technology Training - Caseware Accounting and Financial Reporting for Non-Profit Organizations 2007 Local Govermnent Audit Training- Session I 2007 Local Government Audit Training - Single Audit Training -Session II New Risk Assessment Standards Training Fraud Audit Training Accounting and Finazicial Reporting for Non-Profit Organizations 2008 Local Government Audit Training- Session I ~~ 2008 Local Government Audit Training - Single Audit Training -Session II 2009 Local Government Audit Training- Session I Anew .Iimenez Senior Auditor EDUCATION Bachelor of Arts, Business Administration (Emphasis in Accounting) -California State Polyteclmic University, Pomona PROFESSIONAL EXPERIENCE 2 '/2 yeazs Mayer Hoffman McCann. P.C. -Certified Public Accountants RELATED EXPERIENCE Mr. Jimenez has been assigned respousibiliry to mm~erous audits/ special assignments. This experience has encompassed financial audits of govenunental, compliance audits of grants, not for profit organization audits and single audits. Each of the audits included a review of the entity's internal controls, financial management system and preparation of audited financial statements. Mr. Jimenez has extensive computer knowledge and skills. He is proficient in a variety of computer software programs. Audits of California Cities (including Single Audits conducted under OMB Circulaz A-133 and Audits of Redevelopment Agencies) Performed for City Type of Audit Years Ended ,.. Beverly Hills Amiual Audit 06/07 Burbank Annual Audit 06/07-06/08 Commerce Annual Audit 06/07-06/08 Riverside Annual Audit 06/08 Pasadena Annual Audit 06/08 Culver City Annual Audit 06/08 Highland Annual Audit 06/08 .iHHnenez AHHdy, (Cm41tHHHHneCI~ Audits of Special Districis and Authorities~iuchgding Single Audits conducted utrd_er OIt~(B Circular A-133 Performed for Entity ~e of Audit Years Ended Coachella Valley Water District Annual Audit 06/07-06/08 Los Angeles County Regional Park and Open Space District Annual Audit 06/07-06/08 Elsinore Valley Municipal Water District Armual Audit 06/07 San Bernardino Municipal Water District Annual Audit 06/08 The Housing Authority of the City of ~~s Angeles Amiual Audit 12/07-12/08 Area Housing Authority for the County of Ventura Arurual Audit 06/08 Oxnard Housing Authority Annual Audit 06/08 Los Angeles Homeless Services Authority Annual Audit 06/07-06/08 The Centers for Medicare and Medicade Services Division of Medical Review - Riverbend Government Benefits Administrator SAS 70 Audit 03/07 A reg ed Upon Procedure Engagements Performed for Entity Description Years Ended ,- Comity of Los Angeles Various Proposition A audits N/A City of Culver City Farmers Market 07/08 City of Lynwood Internal Controls 07/08 Audits of Nonprofit Organizations Performed for Nonprofit Organization Tvpe of Audit Years Ended YMCA of OC Annual Audit 06/07 .Iienenez Anely, (Coaxtiiaeueday Community Act 1 ~arhzcrship of OC WebWise Kids Annual Audit 06/07 Atmual Audit 06/07 COMPUTER SKILS AND PROFESSIONAL IMVOLVEMENT Mr. Jimenez is proficient in various computer programs including Excel, Word, Word Perfect, Access, Lacerfe, CaseWare, and PowerPoint. CONTINUING EDUCATION 'TRAINING Date S onsor TOple 4/18-4/19/07 Mayer Hoffman McCann P.C. 2007 Local Government Audit Training Session I 5/30/07 Mayer Hoffman McCann P.C. GASB Update Seminar - 2007 7/23-25/07 Mayer Hoffman McCann P.C. 2007 Local Government Audit Training Session II 1/9/08 Mayer Hoffman McCann P.C. Risk Assessment Standard Training 1/10/08 Non-Profit Resource Center/ Nonprofit Fraud Audit Training Mayer Hoffman McCann P.C 1/11/08 Non-Profit Resource Center/ Nonprofit Audit & Accounting and Mayer Hoffman McCann P.C Federal Form 990 7/23-25/08 Mayer Hoffman McCann P.C. 2008 Local Government Audit Training- Session II 12/19/08 Mayer Hoffman McCann P.C. 2008 Accounting and Auditing Update 1/22-23/09 Mayer Hoffman McCann P.C. 2009 Local Government Audit Training - Session I k~ ~~~ ~." r ~ ~~ a ~, ~r s~~ f ~ 'rJ x $ ,~ ~.. .. ~ ~ ~N ~~ ., .>: .K. .. Apj~end~x /~~~ PEER REVIEirV REPfDR3' Davis, Kinard & C©., P.C. Certified Public AcGOUntanis September 26, 2008 To the Shareholders of Mayer Hoffman McCann P.C. and the Center for Public Company Audit Firms Peer [teview Committee First Financial Bank Building 400 Pine Street, Suite 600 Abilene, Texas 79601-5138 Office (325) 6724000 FAX (325) 672-7049 1-800-568-2525 We have reviewed [he system of quality control for the accounting and auditing practice of Mayer Hoffman McCann P.C. (the firm) applicable to non-SEC issuers in effect for the year ended April 30, 2008. The firm's accounting and auditing practice applicable m SEC issuers was not reviewed by us since the Public Company Acwunting Oversight Board (PCAOB) is responsible for inspecting that por- tion of the firm's accounting and auditing practice in accordance with PCAOB requirements. A system of quality control encompasses the firm's organizational structure and the policies adopted and proce- dures established to provide it with reasonable asswance of complying with professional standards. The elements of quality control are described in fire Statements on Quality Control Standards issued by the American Institute of Certified Public Accountants (the AICPA). The design of thesystem, and compli- ancewith it, are the responsibilities of the firm. Our responsibility is to express an opinion on the design of the system, and the firm's compliance with that system based on ow review. Ow review was conducted in accordance with standards established by the Peer Review Committee of the Center for Public Company Audit Firms and included procedwes m plan acid perform the review that are summarized in the attached description of the peer review process. Our review would not necessaz- ilydisclose all weaknesses in the system of quality control or all instances of lack of compliance with it since it was based on selective tests. Because there are inherent limitations in the effectiveness of any system of quality control, departures from the system may occur and not be detected. Also, projection of any evaluation of a system of quality wntrol to future periods is subject to the risk that the system of quality control may become inadequate because of changes in conditions, or that the degree of compli- ance with the policies or procedures may deteriorate. in our opinion, the system of quality control for the accounting and auditing practice applicable to the non-SEC issuers of Mayer Hoffman McCann P.C. in effect for the year ended April 30, 2008, has been designed [o meet the requirements of the quality control standards for an accounting and auditing pray lice established by the AICPA, and was complied with during the year then ended ko provide the firm with reasonable asswance of complying with applicable professional standazds. As is customary in a system review, we have issued a letter under this date thal sets forth comments relat- ing to certain policies and procedures or compliance with them. The matters in the letter were not con- sidered to be of sttfficient significance to affect the opinion expressed in this report. DAMS, KINARD & CO., P.C. FOR MORE 1NNRMATION CONTACT: American Institute of CerOfled Public Accountants 220 Leigh Farm Road Durham, North Caro9na 27707-6110 p"--' -- trt to €he Peer [YSVi,ew Rerrort at L\2aver [ioT.- ffman I4!€c_C2nn E'-`~' n tine of the Peer Tjigyi w~%'Locrss Overview Firms enrolled in the AICPA Center for Public Company Audit Firms (tire Center) Peer Review Program have their system of qual- ity control periodically reviewed by htdependent peers. These reviews are system and compliance oriented with the objective of evaluating whether: The reviewed firm's system of quality control for its accoun[uig and auditing practice applicable to non-SEC issuers has been designed to meet the requirements of the Quality Conhol Standards established by the AICPA. 1'he reviewed font's quality control policies and procedures applicable to non-SEC issuers were being complied with to provide the fimt with reasonable assurance of complying with professional standazds. A peer review is based on selective tests and directed at assessing whether the design of and compliance with the firm's system of quality control for its accounting and auditing practice applicable to non-SEC issuers provides the firm with reasonable, but not absolute, essmance of complying with professional standards. Consequently a peer review on the firm's system of quality control is not intended to, and does not, provide assurance with respect to any individual engagement conducted by the firm or that none of the financial statements audited by the fern[ should be restated. The Center's Peer Review Committee (PRC) establishes and maintains peer review standards. At regulaz meetings end through report evaluation task forces, the PRC considers each peer review, evaluates the reviewer's competence and performance, and examines every report, letter of comments, and accompanying response from the reviewed firm that states its corrective action plan before the peer review is finalized. The Center's staff plays a key role in overseeing the performance of peer reviews work- ing closely with the peer review teems and the PRC. Once the PRC accepts the peer review reports, letters of comments, and reviewed firms' responses, they are maintained in n file available to the public. [n some situations, the public file also includes a signed undertaking by the fum agreeing to specific fo4 !ow-up action requested by the PRC. Fnms that perform $udits or play a substantial role in the audit of one or more SEC issuers, as defined by the Public Company Accounting Oversight Board (PCAOB), are required to be registered with and have their accounting and auditing practice appli- cable to SEC issuers inspected by the PCAOB. Therefore, we did not review the fum's accounting and auditing pmcfice applica- ble to SEC issuers. Planning the Review of the Firm's Accounting and Auditing Practice Applicable to Non-SEC issuers To plan the review of Mayer Hoffman McCann P.C., we obtained an understanding of (I) the nature and extent of [he firm's accounting and auditing practice, and (2) [he design of the fum's system of quality control sufficient to assess the inherent and control risks implicit in its practice. Inherent risks were assessed by obtaining an understandingof the firm's practice, such as the industries of its clients and other factors of complexity in serving those clients, and the organization of the film's personnel into practce units. Control risks were assessed by obtaining an understanding of the design of the Emn's system of quality control, including its audit methodology, and monitoring procedures. Assessing wntrol risk is the process of evacuating the effectiveness of fhe reviewed fum's system of quality control in preventing the performance of engagements that do not comply with profes- sional standards. - Performing the Review o[ the Firm's Accounting and Auditing Practice Applicable to Non-SEC Issuers Based on our assessment of the combined level of inherent and control risks, we identified pmc[ice units end selected engage- ments within those units to test for compliance with the fnm's system of quality control. The engagements selected for review included engagements performed under Government Auditing Sratularets, audits of Employee Benefit Plans and audits of engage- ments subject to the Federal Deposit Insurance Corporation Improvement Act. The engagements selected for review represented across-section of the fine's accounting and auditing practice with emphasis on higher-risk engagements. The engagement reviews included examining working paper files and reports and interviewing engagement personnel The scope of the peer review also included examining selected administrative and personnel files to determine compliance with the fine's policies and procedures for the elements of quality control pertaining to independence, integrity, and objectivity; per- sonnel management; and acceptance and continuance of clients and engagements. Prior to concluding the review, we reassessed the adequacy of scope and conducted an exit conference with firm management to discuss our findings and recommendations. F<, - ,, PROPOSAL OF INDEPENDENT AUDIT SER DICES TO THE CITY OF LYNWOOD, CALIFORNIA (Cost Proposal) Submitted by: MAYER HOFFMAN McCANN P.C. CONRAD GOVERNMENT SERVICES DIVISION 2301 DUPONT DR., SUITE 200 IRVINE, CALIFORNIA 92612 '" April 13, 2009 CONTACT PERSON -JENNIFER FARR, SHAREHOLDER PHONE NO: (949) 474-2020, EXT. 301 FACSIMILE NO: (949) 263-5520 EMAIL: ifarr(c~cbiz.com WEBSTI'E: www.mhm-po.com MAYER HOFFMAN McCANN P.C. CALIFORNIA LICENSE NO. CORP 5091 MAYER HOFFMAN McCANN P.C. FEDERAL IDENTIFICATION NO.43-1947695 Mayer Hoffman McCann P.C. - An Independent CPA nrtn .our roots run deep ~/i~y~r ~I~ffff~~~~~ ~9t:~~l~~i ~~. An Indelrendent CPA Firm 2301 Dupont Drive, Suite 200 Irvine, California 92G12 949-474-2020 ph 949-2G3-5520 fz www.mhm-pacom April 13, 2009 City of Lynwood Maria Quninonez, City Clerlc 11330 Bullis Road Lynwood, CA 90262 Dear Ms. Quninonez: Enclosed please our cost proposal which we have separated from our technical proposal for audit services to be performed by Mayer Hoffmazi McCann P.C. I certify that I am entitled to represent the firm, empowered to submit the proposal, and authorized to sign a contract with the City of Lynwood. The total all-inclusive maximum price for each year is shown below, including any out- of-pocket expenses. Total Year Fee 2008/2009 $40,890 2009/2010 41,900 2010/2011 42,960 Sincerely, MAYER HOFFMAN MCCANN, PC /d~~k ~~_ Jennifer Farr, C.P.A. Shazeholder A{aaC~iflLCHflt A Ai1DflT WO22K COST Pdd®POSAT, FORM Service 2008/09 2009/10 2020/flfl City Audit and Related $23,400 $23,970 $24 580 Reports , GANN Limit Review Report $760 $780 $800 Single Audit and Related Reports $2 280 $2,340 $2,400 Redevelopment Audit and $5,710 $5,850 $6 000 Related Reports , Lynwood Information Inc and $1,710 $1,750 $1 790 Related Reports , Annual State Controller's $3,800 $3,900 $4 000 Report -City , Annual State Controller's $2 280 $2,340 $2 400 Report -Redevelopment , Statement ofIndebtedness - $950 $970 $990 Redevelopment Total for Fiscal Year (not-to exceed) $40,890 $41,900 $42,960 Optional years can be added at a nomina12.5% increase. AC;EPVDA STAFF BEFORE DATE: June 2, 2009 TO: Honorable Mayor and Members of the City Council APPROVED BY: Roger L. Haley, City Manag PREPARED BY: Robert S. Torrez, Assistant City Manager "Administrative and Community Services ,,,,,) Delania Whitaker, Administrative Analyst Il~l~l- SUBJECT: City's Opposition to the State's Seizure of Local Property Tax Funds and the Continued Adoption of Unfunded Mandates by the State of California Recommendation: Staff recommends that the City Council adopt the attached resolution entitled, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD DECLARING THE CITY'S STATE OF SEVERE FISCAL HARDSHIP DUE TO THE STATE'S SEIZURE OF LOCAL PROPERTY TAX FUNDS AND THE CONTINUED ADOPTION OF UNFUNDED MANDATES BY THE STATE OF CALIFORNIA". Background: On May 5, 2009, the State of California Department of Finance announced its proposal for Governor Arnold Schwarzenegger to borrow over $2 billion in local property taxes from cities, counties and special districts to balance the state budget. Discussion & Analysis: The League of California Cities has taken an opposing position on the State of California Department of Finance's proposal to the Governor that would allow over $2 billion in local property taxes to be borrowed from cities and is seeking the cooperation of cities to adopt resolutions in opposition of the proposed property state tax raid. If the state property tax raid is implemented, it will add to the pressures of the current property tax losses and the serious revenu losses due to the economic recession. /¢ The state's borrowing of local property tax funds from cities will ultimately cause deeper cuts in essential services such as fire and law enforcement services. If the proposal is met, the City would lose approximately $713,000 of funding that is used to help it continue to address the increased needs that affect the quality of life in Lynwood and define our community as a safe one. Since the 1990s, there has been approximately $8.6 billion in cumulative property tax losses from cities statewide. The City of Lynwood has lost a total of $6.3 million in Education Revenue Augmentation Fund, Prop.172 and Community Oriented Policy Services funding to these state raids. Fiscal Impact: The action recommended in this report will not have a fiscal impact on the City Coordinated With: City Manager's Office City Attorney's Office 2 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD DECLARING THE GITY'S STATE OF SEVERE FISCAL HARDSHIP DUE TO THE STATE'S SEIZURE OF LOCAL PROPERTY TAX FUNDS AND THE CONTINUED ADOPTION OF UNFUNDED MANDATES BY THE STATE OF CALIFORNIA WHEREAS, the current economic crisis has placed cities under incredible financial pressure and caused city officials to reopen already adopted budgets to make painful cuts, including layoffs and furloughs of city workers, decreasing maintenance and operations of public facilities, and reductions in direct services to keep spending in line with declining revenues; and WHEREAS, since the early 1990s the state government of California has seized over $8.6 billion of city property tax revenues statewide to fund the state budget even after deducting public safety program payments to cities by the state; and WHEREAS, in FY 2007-08 alone the state seized $895 million in city property taxes statewide to fund the state budget after deducting public safety program payments and an additional $350 million in local redevelopment funds were seized in FY 2008-09; and WHEREAS, the most significant impact of taking local property taxes has been to reduce the quality of public safety services cities can provide since public safety comprises the largest part of any city's general fund budget; and WHEREAS, in 2004 the voters by an 84% vote margin adopted substantial constitutional protections for local revenues, but the legislature can still "borrow" local property taxes to fund the state budget; and WHEREAS, on May 5 the Department of Finance announced it had proposed to the Governor that the state "borrow" over $2 billion in local property taxes from cities, counties and special districts to balance the state budget, causing deeper cuts in local public safety and other vital services; and WHEREAS, in the past the Governor has called such "borrowing" proposals fiscally irresponsible because the state will find it virtually impossible to repay and it would only deepen the state's structural deficit, preventing the state from balancing its budget; and WHEREAS, the Legislature is currently considering hundreds of bills, many of which would impose new costs on local governments that can neither be afforded nor sustained in this economic climate; and 3 WHEREAS, state agencies are imposing, or considering, many regulations imposing unfunded mandates on local governments without regard to how local agencies will be able comply with these mandates while meeting their other responsibilities; and WHEREAS, the combined effects of the seizure of the City's property taxes, increasing unfunded state mandates, and the revenue losses due to the economic downturn have placed the city's budget under serious fiscal pressure; and WHEREAS, our City simply can not sustain the loss of any more property tax funds or to be saddled with any more state mandates as they will only deepen the financial challenge facing our city; and WHEREAS, a number of the City's financial commitments arise from contracts, including long term capital leases and debt obligations which support securities in the public capital markets, that the City must honor in full unless modified by mutual agreement of the parties. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES HEREBY FIND, PROCLAIM, ORDER AND RESOLVE AS FOLLOWS: Section 1. That the City of Lynwood will experience a severe fiscal hardship if the recommendation of the Department of Finance to "borrow" $2 billion of local property taxes is supported by the Governor and the Legislature. Section 2. That the City of Lynwood strongly and unconditionally opposes the May 5 proposal of the Department of Finance and any other state government proposals to borrow or seize any additional local funds, including the property tax, redevelopment tax increment, and the City's share of the Prop. 42 transportation sales tax. Section 3. That the City of Lynwood strongly urges the state legislature and Governor to suspend the enactment of any new mandates on local governments until such time as the economy has recovered and urges the state to provide complete funding for all existing and any new mandates. Section 4. That the City Clerk shall send copies of this resolution to Governor Arnold Schwarzenegger, Senator Alan Lowenthal, Assembly Member Hector De La Torre and the League of California Cities. 4 PASSEt~, APPROVED AND ADOPTED this ?_009. ATTEST: Maria Quinonez, City Clerk APPROVED AS TO FORM: Fred Galante, City Attorney day of Maria T. Santillan, Mayor APPROVED AS TO CONTENT: Roger L. Haley, City Manager AGENDA STAFF REPORT DATE: June 2, 2009 TO: Honorable Mayor and Members of the City Council APPROVED BY: Roger L. Haley, City Manag PREPARED BY: G. Daniel Ojeda, P.E., Director of Public Wor s1k City Engineer Josef Kekula, Civil Engineering Associate SUBJECT: Award of Consulting Services Contract to Advance Applied Engineering, Inc. (AAE) For the Pavement Management System Update Project Project No. 4011.67.997 Recommendation: Staff recommends that the City Council adopt the attached resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD AWARDING A CONSULTING SERVICES CONTRACT TO ADVANCE APPLIED ENGINEERING, INC. FOR PREPARATION OF THE CITY'S PAVEMENT MANAGEMENT SYSTEM UPDATE PROJECT, PROJECT NO. 4011.67.997 FOR THE NOT-TO-EXCEED FEE OF $36,730 AND AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT". Background: The Pavement Management System is a tool used to help estabtish the City's multi-year CIP road maintenance program. Additionally, the MTA requires all cities to have and maintain such a system. The current system database was prepared in FY 2005-2006. To keep the system database current and in compliance with MTA requirements, the database and program should be updated every 2-3 years. As such, on April 24, 2008, the City of Lynwood released a Request for Proposals (RFP), for the Pavement Management System Update Project, Project 4011.67.997. Included in this upgrade will be that the Pavement Management System be modernized to be GIS accessible. The RFP was published in the Integrated Marketing Systems (IMS), a professional services publication; the Southern California Builders Association; F.W. D Publication; Reed Construction Data; and Construction Bid Board. Etdf3~ `f'fEM /`i./ Discussion & Analysis: Nine engineering consulting firms requested a copy of the RFP and seven responded to the RFP. Proposer IWORQ, Logan Utah, did not follow the specifications as indicated in the RFP, and as such was not considered. Firm Name Total Fees GK & Associates, Diamond Bar, CA $45,160 Harris & Associates, Irvine, CA $49,960 MGIS, Phoenix, AZ $23,295 APA Engineering, Inc., Laguna Hills, CA $47,690 GIE, Montreal, (Quebec) Canada $84,829 AAE, Orange, CA $36,730 A review panel consisting of four public works staff members evaluated the proposals on May 18, 2009. The top three firms were Harris and Associates, GK and Associates and Advanced Applied Engineering, Inc. (AAE). Pursuant to Lynwood Municipal Code section 6-3.9, staff is recommending that the consulting services contract be awarded to AAE. The determinant factors in the selection criteria were the proposal, firm's qualifications, and fees. Fiscal Impact: Funds in the amount of $36,730 are budgeted in project account 4011.67.997. Coordinated With: City Manager's Office City Attorney's Office City Clerk's Office Finance Department z RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD AWARDING A CONSULTING SERVICES CONTRACT TO ADVANCE APPLIED ENGINEERING, INC. FOR PREPARATION OF THE CITY'S PAVEMENT MANAGEMENT SYSTEM UPDATE PROJECT, PROJECT NO. 4011.67.997 FOR THE NOT-TO-EXCEED FEE OF $36,730 AND AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT WHEREAS, the pavement management system needs to be updated and upgraded to comply with Metro requirements; and WHEREAS, on April 24, 2008, the City of Lynwood released a Request for Proposals (RFP) for the upgrade of the City's Pavement Management System; and WHEREAS, nine firms requested RFP's and seven responded to the RFP; and WHEREAS, AAE Engineering, Inc. is a qualified firm and has the staffing and expertise to prepare the Pavement Management System Update project for anot-to- exceed fee of $36,730. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES HEREBY FIND, PROCLAIM, ORDER, AND RESOLVE AS FOLLOWS: Section 1. That the Lynwood City Council awards a consulting services contract to AAE, Inc. in the not-to-exceed amount of $36,730 for the Pavement Management System Update Project, Project. 4011.67.997 and finds that AAE, Inc. is the most qualified proposer per Lynwood Municipal Code section 6-3.9. Section 2. That the Mayor is authorized to execute the Agreement between the City of Lynwood and AAE, Inc. in a form approved by the City Attorney. Section 3. That this resolution shall take effect immediately upon its adoption. Section 4. The City Clerk shall certify as to the adoption of this Resolution. PASSED, APPROVED and ADOPTED this 2nd day of June, 2009. Maria T. Santillan Mayor 3 ATTEST: Maria Quinonez City Clerk APPROVED AS TO FORM Fred Galante City Attorney Roger L. Haley City Manager APPROVED AS TO CONTENT: G. Daniel Ojeda, P.E. Director of Public Works /City Engineer STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) I, the undersigned, City Clerk of the City of Lynwood, do hereby certify that the above and foregoing resolution was duly adopted by the City Council of the City of Lynwood at a regular meeting held in the City Hall of said City on the day of ,and passed by the following vote: AYES: NOES: ABSENT: City Clerk, City of Lynwood STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) I, the undersigned City Clerk of the City of Lynwood,. and Clerk of the City Council of said City, do hereby certify that the above and forgoing is a full, true and correct copy of Resolution No. on file in my office and that said resolution was adopted on the date and by the vote therein stated. Dated this day of , City Clerk, City of Lynwood s AGENDA STAFF REPORT DATE: June 2, 2009 TO: Honorable Mayor and Members of the City Council APPROVED BY: Roger L. Haley, City Manage/~/ PREPARED BY: Lorry Hempe, Assistant City Manager H. Ernie Nishii, Housing Manager SUBJECT: Substantial Change in the 08-09 Action Plan and Approval of the Actions Necessary to Apply for CDBG-R Funds Recommendation: Staff recommends that the City Council adopt the attached resolution entitled, "A RESOLUTION OF THE CITY OF LYNWOOD APPROVING A SUBSTANTIAL CHANGE IN THE 08-09 ACTION PLAN AND CONSOLIDATED PLAN AND AUTHORIZING THE CITY MANAGER TO TAKE ALL APPROPRIATE AND PROPER ACTION TO APPLY FOR AND RECEIVE FOR THE CITY OF LYNWOOD THE AMOUNT OF $422,000 IN COMMUNITY DEVELOPMENT BLOCK GRANT- RECOVERY FUNDS". Background: On May 6, 2009 the Federal Government issued a Notice of Funding Availability (NOFA) for the Community Development Block Grant-Recovery (CDBG-R) program. Lynwood was allocated $422,000 in additional Federal funds to administer the CDBG-R Program. This Recovery Act fund is designed to provide stimulus money to the City to implement programs which should help the City meet its economic job creation and housing goals. Pursuant to the NOFA, the City has timely published the notice of the substantial change in Spanish and English and timely posted said change on the City's Website. The deadline to submit an application to the Federal Government is June 5, 2009. If the City elects not to submit an application for the funds, the funds will be reallocated to other jurisdictions. Upon submission of the application, the Department of Housing and Urban Development may provide suggestions or revisions to the proposed application so that the proposed uses are consistent with the national objectives and law set forth in the American Recovery and Relief Act (ARRA). One of the national objectives is the initiation of a project within 120 days of approval. After review of the application for compliance with the objectives set forth in the ARRA th City may receive an Agreement for the administration of these federal funds. Th~ CDBG-R funds should be fully obligated within three years of the execution of the Agreement with HUD to administer these funds. Discussion & Analysis: The current proposed use of these CDBG-R funds are as follows: 1. Rebuild Sanborn street from Virginia to Louise St. 2. Create an emergency grant program to assist homeowners who have home repairs deemed to be an "emergency". 3. Add funds to the City's Home Rehabilitation program. Each of the above uses were selected on the basis of readiness, meeting the national objectives of economic revitalization, job creation (permanent or temporary) as set forth in the Notice of Availability of Funds, and the desire to eliminate the blighting condition of homes which need emergency assistance. As it relates to the emergency grant program, it is expected that Code Enforcement will assist in the identification of homes in need of emergency repair. Pursuant to the national objectives the projects set forth above should be fully expended within the first year and will all be initiated well within the 120 days of the HUD's execution of an Agreement with the City. If the City approves of this application, Staff will submit an application by the June 5, 2009 deadline and undertake all necessary and appropriate action to receive these funds. Fiscal Impact: There is no negative fiscal impact to the General Fund. The grant will be utilized to pay for a percentage of the staff time required to monitor and implement the program. Coordinated With: City Attorney's Office Attachments: 1. Resolution 2. Amendment 3. Notice 2 RESOLUTION NO. A RESOLUTION OF THE CITY OF LYNWOOD APPROVING A SUBSTANTIAL CHANGE IN THE 08-09 ACTION PLAN AND CONSOLIDATED PLAN AND AUTHORIZING THE CITY MANAGER TO TAKE ALL APPROPRIATE AND PROPER ACTION TO APPLY FOR AND RECEIVE FOR THE CITY OF LYNWOOD THE AMOUNT OF $422,000 IN COMMUNITY DEVELOPMENT BLOCK GRANT- RECOVERY FUNDS WHEREAS, the Department of Housing and Urban Development issued a Notice of Funding Availability (NOFA) on May 6, 2009 pursuant to the American Recovery and Relief Act (ARRA); and WHEREAS, due to the significant need, Lynwood was allocated $422,000 in Federal funds to administer a Community Development Block Grant-Recovery (CDBG- R) Program designed to eliminate blight and create economic development in the City; and WHEREAS, on May 21, 2009, pursuant to the NOFA issued on May 6, 2009, the City published the Notice of Substantial Amendment of its annual 2008-2009 Action Plan in both Spanish and in English in the Lynwood Journal well within the program requirement of seven days; and WHEREAS, on May 21, 2009 the City posted the Substantial Amendment detailing the proposed activities in English and in Spanish pursuant to the Citizen Participation Plan and on the City's Website; and WHEREAS, the Programs selected for CDBG-R approval were selected on the basis of meeting the national objectives set forth in ARRA and the NOFA and will create jobs, encourage economic development and eliminate blight; and WHEREAS, the Programs are expected to be initiated within 120 days of the execution of the Agreement by HUD and all funds are expected to be expended well within the requirements of ARRA; and ' WHEREAS, the Programs proposed for implementation include the installation of a street along Sanborn; the implementation of a new emergency home rehabilitation program and the addition of new funding to an existing home rehabilitation program. NOW, THEREFORE, THE CITY OF LYNWOOD HEREBY RESOLVE AS FOLLOWS: Section 1. That the City of Lynwood authorizes the City Manager of the City of Lynwood to take all appropriate action to apply for and accept Federal funds in the CDBG-R Program to provide jobs, assist economic development and eliminate blight. Section 2. This Resolution shall go into effect immediately upon its adoption. PASSED, APPROVED, AND ADOPTED this 2nd day of June, 2009. Maria T. Santillan Mayor ATTEST: Maria Quinonez City Clerk Roger L. Haley City Manager APPROVED AS TO FORM: Fred Galante City Attorney APPROVED AS TO CONTENT: Lorry Hempe Assistant City Manager z CITY OF LYNWOOD SUBSTANTIAL AMENDMENT TO FY 2005-2010 CONSOLIDATED PLAN AND 2008-2009 ACTION PLAN In accordance with its Citizen Participation Plan and U.S. Department of Housing and Urban Development (HUD) regulations, the City of Lynwood is notifying the public of the proposed amendment to the activities to be carried out using CDBG- R funds: Program Goals and Strategies The primary goals of the City's CDBG Program are as follows: • to provide adequate infrastructure system for existing and new residential development; (pg. 10 of Action Plan) • Fight deteriorated conditions in CDBG areas through emergency home repairs; • Provide decent housing through restoration and preservation of existing housing stock. (pg. 1) Proposed Activity and Funding Allocation Listed below are the activities that will be undertaken by the City during the FY 2008-09 program year. 1. Expend up to $210,000 to grind and overlay new pavement on Sanborn Street between Virginia and Louise. This project will be initiated within 120 days of the date the funds are made available to the City. No other recovery act funds are anticipated to be utilized with this project and no other city funds will be utilized towards this project. The total budget is $210,000. This project will maximize job creation by providing badly needed construction jobs. These jobs are most impacted by the current recession. The renewal of this key street will improve the infrastructure leading to a new housing project located at 11300 Atlantic and businesses located on Atlantic. This project should produce 21 construction jobs for approximately 2 months. If constructed, this street will provide long term economic benefit for at least 10 years. 2. Expend up to $60,000 for emergency repairs for up to five homeowners at $10,000 each. The projects will be initiated within 120 days of the date funds are made available to the City. No other recovery act funds are anticipated to be utilized for this project except to the extent the homeowner's projected repairs qualify for weatherization or energy retrofit funds set forth in ARRA. The total budget is $60,000. This project will maximize job creation by providing badly needed construction jobs. These jobs are most impacted by the current recession. The project should produce 4 temporary construction jobs. 3. Expend up to $152,000 to Housing Rehabilitation Program. This project will be initiated within 120 days of the date funds are made available to the City. No other recovery act funds are anticipated to be utilized for this project except to the extent that the homeowner's projected repairs qualify for weatherization or energy retrofit funds set forth in ARRA. To the extent anon-profit is able to leverage funds, the budget will be increased. At present the budget is $152,000. This project will maximize job creation by providing badly needed construction jobs. These jobs are most impacted by the current recession. The project should produce i4 temporary construction jobs for 3 months. Ten percent of the funds in each activity will be utilized to pay for administrative and planning costs for the implementation of the above activities. Please contact Annette Potts at 310-603-0220 for more information. CITY OF LYNWOOD NO'T'ICE OF PROPOSED SUBSTANTIAL AMENDMENT TO THE CONSOLIDATED PLAN 2008 ACTION PLAN FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM -R (CDBG-R) NOTICE IS HEREBY GIVF,N that the City of Lynwood ("City") invites public comments on its intention to make a Substantial Amendment to its Consolidated Plan 2008 Action Plan. On February 17, 2009, President Obama signed the American Recovery and Reinvestment Act of 2009, which includes $1 billion in Community Development Block Grant Funds. The City of Lynwood will receive an allocation of $422,000 under the Community Development Block Grant Program. Each year, the City prepares an Annual Action Plan that states the goals, the federally funded program/projects to be undertaken, the amount of funds to be committed per prograrn/project and the targeted number of assisted households and incomes per project for the new fiscal year. The City identified specific programs and allocations in the Action Plan. In order for grantees to be eligible to receive funds under the CDBG-R program, grantees aze required to complete a substantial amendment to their Consolidate Plan 2008 Action Plan. In accordance with its Citizen Pazticipation Plan and U.S. Department of Housing and Urban Development (HUD) regulations, the City of Lynwood is notifying the public of the proposed activities to be carried out using Community Development Block Grant Funds. The Substantial Amendment describes the program goals and strategies as well as the proposed activities and funding allocations for each activity. Those wishing to wmment on this item may do so in writing on or before June 2, 2009 at 5:00 p.m. At any time not later than the hour aforesaid, any person objecting to the project and the proposed use of federal funds may file, in writing with the Redevelopment Director, a statement of his or her objection thereto. The City Council will be considering the substantial amendment for approval at the June 2, 2009 meeting at 5:00 p.m. The City Council meeting will be held at the Council Chambers, City Hall, 11330 Bullis Road, Lynwood, California 90262. The Substantial Amendment and all other required documents for the project are available for public inspection at the office of the Redevelopment Development at 11330 Bullis Road, Lynwood, Califomia, during the hour of 7:00 A.M. to 6:00 P.M., Monday through Thursday. Dated: May 18, 2009 PublisU: May 18, 2009 Post (City Hall, LiUrary and Post Office) CIUDAD DE LYNWOOD AVISO DE ENMIENDA SUSTANCIAL PROPUESTA PARA EL PLAN DF, ACCION CONSOLIDADO DE 2008 PARA EL PROGRAMA DE BECA EN BLOQUE PARA DESARROLLO COMUNITARIO - R / COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM - R (CDBG-R) POR ESTE MEDIO SE NOTIFICA que la Ciudad de Lynwood (en adelante, la "Ciudad") invita a recibir comentarios publicos sobre su intention de realizar Emniendas Sustanciales a su Plan de Action Consolidado de 2008. El 17 de febrero de 2009, el presidente Obania firmo la Ley estadounidense de recuperation y reinversion de 2009, la que incluye $1 mil millones en fondos de beca en bloque para desarrollo comunitario. La Ciudad de Lynwood recibira una asignacion de $420,000 Begun el programa de beca en bloque Para desarrollo comunitario, o sea en ingl8s, Community Development Block Grant Ponds (CDBG) Program. Cada ano, la Ciudad prepara una Plan de Accion Auual que establece los objetivos, los programas o proyectos financiados federalmente para ser llevados a cabo, la soma de los fondos comprometidos por programa/proyecto, y la cantidad programada de viviendas asistidas y los ingresos por proyecto para el nuevo ano fiscal. La Ciudad identifico programas especificos y asignaciones en el Plan de Accion. Para que los que reciben la concesion sear elegidos para recibir fondos Begun e] programa CDBG-R, se requiere que se realice una enmienda sustancial al Plan de Accion Consolidado para e12008. De acuerdo con su Plan de participation ciudadana y las regulaciones del Departamento de vivienda y desarrollo urbano (HUD) de los Estados Unidos, la Ciudad de Lynwood esta notificando al publico las actividades propuestas a realizarse utilizando los fondos del programa de beca en bloque para desarrollo comunitario. La enmienda sustancial describe las metal y strategias tambien como las actividades propuestas y asignaciones de los fondos para calla actividad. Los que deseen comentar sobre este panto podran hacerlo por escrito no mas tarde que el 2 de jmiio, 2009, a las 5:00 de la tarde. En cualquier momento anterior a la hora mencionada, cualquier persona que objete el proyecto y el use propuest de los fondos federates podra presentar, por escrito al Director de Urbanismo / Redesarrollo (Department of Redevelopment), una declaracibn de sus objeciones. El Municipio se considera la enmienda sustancial para su aprobacion en la reunion de 2 de junio, 2009, a las 5:00 de la tarde. La reunion de los concejales de la Municipalidad de Lynwood se realizara en la Camara del Municipio de la Municipalidad, 11330 Bullis Road, Ciudad de Lynwood, California 90262. La Enmienda Substantial y otros documentos requeridos para el proyecto estan disponibles para inspection publica a partir del 22 de abril de 2009 en la oficina de Urbanismo /Department of Redevelopment en 11330 Bullis Road, Lynwood, California, de 7:00 A.M. a 6:00 P.M., de Tunes a jueves. Fecha: 18 de mayo de 2009 Publicado: 18 de mayo de 2009 Publican (Municipio, Biblioteca, Oficina Postal) AGENDA STAFF REPORT DATE: June 2, 2009 TO: Honorable Mayor and Members of the City Council APPROVED BY: Roger L. Haley, City Manag~ PREPARED BY: Perry Brents, Director of Recreation and Community Services ~~ SUBJECT: Summer Food Service Agreement Recommendation: Staff recommends that the City Council adopt the attached resolution entitled, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD AUTHORIZING THE MAYOR TO EXECUTE THE ATTACHED AGREEMENT BETWEEN THE CITY OF LYNWOOD AND THE LYNWOOD UNIFIED SCHOOL DISTRICT TO PROVIDE MEALS FOR THE SUMMER FOOD SERVICE PROGRAM". Background: For the past nineteen years, the City of Lynwood has been a local sponsoring agency for the Summer Food Service Program funded through a reimbursement grant received from the State Department of Education (DOE). Costs for meals are at a fixed rate provided by the United States Department of Agriculture (USDA). Food provided for the program must come from a certified Vendor who is approved by the DOE and the USDA. Discussion & Analysis: Lynwood Unified School District (LUSD) is approved and certified by the USDA as a Vendor for the Summer Food Service Program to operate during the summer months when children are out of school, June, July, August and September. Sites include all of the schools in the LUSD as well as any/all sites agreed upon by the City and LUSD. The Agreement between the City and LUSD seeks to provide meals for Breakfast from 9:00 A.M. - 9:45 A.M. and Lunch from 12:30 P.M. - 1:30 P.M. at two sites, including the Lynwood Youth Center and Burke-Ham Park. If agreed upon, the Summer Food Service Program would operate from June 15, 2009 through September 18, 2009. %7 Fiscal Impact: The cost to operate the program is estimated at $78,650. The City has annually made a provision in the general fund to account for this expense over the past 18 years. The total cost includes food along with a percentage of staff time to operate the program. All eligible costs are reimbursed through the Summer Food Service Grant. Coordinated With: City Attorney Finance Department AGREEMENT THIS AGREEMENT is made and entered into as of the 2nd day of June 2009 by and between the CITY OF LYNWOOD, A MUNICIPAL CORPORATION ("SPONSOR") and the LYNWOOD UNIFIED SCHOOL DISTRICT OF LOS ANGELES COUNTY ("VENDOR") pursuant to Resolution No. of the City Council of the City of Lynwood adopted at its meeting held on the 2nd day of June 2009 and a minute order of the Board of Education of the Lynwood Unified School District of Los Angeles County adopted at its meeting held on the 9th day of June, 2009. RECITALS I. This Agreement is made with reference to the following facts and objectives. A. The United States Department of Agriculture (USDA) has made funds available for a Summer Food Service Program to provide meals at no cost to eligible children. B. Sponsor has entered into an agreement with the California Department of Education to provide for the Administration of the Program. C. Sponsor desires to enter into an Agreement with Vendor for the preparation of meals pursuant to and in implementation of the Program. D. Vendor has a food service facility possessing the skilled personnel and equipment necessary for the preparation of such meals. II. MUTUAL OBLIGATIONS A. VENDOR TO PREPARE. Vendor agrees to prepare and place in containers provided by Sponsor such meals described hereinafter as Sponsor may order from Vendor in the manner hereinafter as specified for the Program. Vendor warrants that all meals prepared by it will be wholesome, suitable for human consumption and that Vendor shall meet all specifications and obligations under the existing regulations of the USDA, or as amended, as are pertinent or applicable to the Program ("Regulations"). B. CONSIDERATION. In consideration of the satisfactory performance of Vendor's obligations pursuant to this Agreement, Sponsor shall pay to Vendor the sum of $2.88 for each lunch and $1.65 for each breakfast prepared for service at locations within the City of Lynwood. The quantity shall not exceed three hundred (300) of each meal daily except as may be mutually agreed upon by Sponsor and Vendor. Sponsor's ordering of a quantity in excess of meals daily and Vendor's providing thereof shall constitute such mutual agreement. In no event shall Sponsor be liable or be required to pay for any meals which fail to meet the requirements of the regulations, including those pertaining to USDA nutritional requirements, such as meals of poor quality, unwholesome or spoiled meals or portions thereof or damaged meals or meals which otherwise fail to meet the requirements set forth in this Agreement (when all required meal components are served by the Sponsor). 3 C. PAYMENTS. Vendor expressly agrees that payment of such meals provided under this Agreement shall be made by Sponsor within sixty (60 days) after billing period. It is understood that the USDA assumes no liability for payment of differences between the number of meals delivered/prepared by Vendor and the number of meals served by the Sponsor that are eligible for reimbursement. III. ORDERING OF MEALS AND DELIVERY A. ORDERING. Sponsor shall order from Vendor on a daily basis such number of meals as are needed three (3) days in advance of service at the location within the City of Lynwood. Each daily order may be increased or decreased by Sponsor only upon notice given to Vendor no later than 1:00 p.m. on the day prior to the day upon which such increase or decrease is to take effect. B. PICK UP AND DELIVERY. Sponsor agrees to deliver all meals prepared for service at locations within the City of Lynwood on the day of the actual service of such meals. All breakfasts and lunches shall be available for pick-up by Sponsor at Vendor's loading dock no earlier than 8:15 a.m. and no later than 9:15 a.m. for breakfasts and lunches no earlier than 10:30 a.m. and no later than 11:45 a.m. on the day of service. Times may be adjusted with consent of both the Vendor and Sponsor. IV. PREPARATION OF MEALS A. Vendor agrees to provide different menus daily to prevent monotony in meals. B. BREAKFAST. All breakfasts shall consist of the required number of the following components: 1. Eight (8) ounces of fluid milk. 2. One-half (1/2) cup of vegetables or fruits, or full-strength or fruit- strength vegetable or fruit juice. 3. One (1) slice bread or equivalent made of whole grain or enriched flour or meal, or three-quarters (3!4) cup of cooked cereal. B. LUNCHES. All lunches shall meet the requirements of a USDA reimbursable lunch, described generally as follows: 1. Eight (8) ounces fluid milk. 2. Two (2) ounces (edible portion as served) of meat or meat alternate (fish, cheese or one (1) egg, one-half (1/2) cup cooked dry beans or peas, or four (4) tablespoons of peanut butter), or an equivalent. 3. Three-fourths (3/4) cup of two (2) or more fruits and/or vegetables. A serving of full-strength fruit juice may be counted to meet no more than three-eighths (3/8) cup of this requirement. 4. One (1) slice of bread or equivalent made of whole grain or enriched flour or meal: C. PACKAGING. 4 1. Meals shall be packaged in a plastic bag or wrapped box by Sponsor. 2. Each unit shall be capable of holding meals at a temperature of 32 degrees minimum not to exceed 45 degrees maximum, for a period of three (3) hours. 3. All sandwiches shall be individually wrapped and sealed. 4. An eight (8) ounce carton of milk shall be supplied with each meal. D. MENU CYCLE. Vendor shall provide lunches in accordance with menu cycle mutually agreed upon in writing which may be repeated for the duration of the program. Vendor shall provide hot lunches a minimum of three (3) times per week throughout the Program as ordered by Sponsor. V. GENERAL FOOD HANDLING REQUIREMENTS A. FOOD ANALYSIS. At the discretion of the Vendor, and at its own expense, a random sampling of meals shall be sent to a recognized laboratory for analysis of portions, bacteria, coliform and plate counts. B. HEALTH REGULATION. All applicable health regulations will be adhered to by Vendor at all times. Sponsor, state and federal program authorities shall have the right to inspect Vendor's premises and request formal inspections by health officials if deemed necessary. Failure to comply with applicable health requirements shall result in the termination of this Agreement. C. PERMITS. Food handler's permits shall be required in accordance with applicable requirements. Vendor shall have the responsibility to ensure that its employees observe sanitary food handling practices. D. HOLDING FACILITIES AND PACKAGING MATERIAL. Sponsor shall provide satisfactory holding facilities such as styrofoam containers. Packaging material shall. be of strength sufficient to prevent crushing of food. QUALITY STANDARD. Quality standards shall adhere to state and local specifications, and all meat by-products shall come from plants inspected under afederally- approved inspection program. E. TRANSPORTING AND FOOD SERVICE EQUIPMENT. All transporting and other food services equipment shall be cleaned and sanitized on a daily basis. If the condition of boxes becomes unacceptable for food handling, the Sponsor agrees to replace containers. F. PACKING OF MEALS. Each individual meal (including beverage and fresh fruit) shall be unitarily packaged by Sponsor. Vendor meals shall be packaged in bulk. Sponsor shall see that all components are served. Breakfast and lunch will be identified separately. G. PREPARATION AND ASSEMBLY OF MEALS. Meals shall be prepared under properly controlled temperatures. Assembly should include necessary eating utensils, napkins, condiments, etc. Assembled meals shall be held in properly refrigerated and/or heated areas that meet sanitation standards. Samples of finished meal packages in accordance with menus provided, shall be approved by Sponsor and there shall be no deviation from the packaging presented and approved. I. PRODUCTS. All products shall be manufactured and assembled in a USDA or County of Los Angeles Health Department approved and inspected plant not more than twenty-four (24) hours prior to delivery. Vendor shall furnish upon request and at Sponsor's expense a microbial analysis, a chemical analysis and flavor analysis. J. DONATION FOODS. USDA donation foods will be utilized as practical in the program and in availability from the state. K. MEALS. Vendor shall supply complete meals only. If any portion of meal is undeliverable, unacceptable or missing, Sponsor shall disallow payment of total meal unless the missing components are provided before serving. L. VERIFICATION. Verification of the number of boxes, as well as the number of meals in each box, shall be made by Sponsor on the. Vendor's dock at the time of loading. VI. RECORDS A. MONTHLY RECORDS. In addition to any-other records, books, statements or invoices required to be kept by Vendor pursuant to this Agreement, Vendor shall maintain such records (supported by invoices, receipts or other documenting evidence) as Sponsor will need to meet its responsibilities. Such information shall be reported by the Vendor to the Sponsor within ten (10) days. B. KEEPING OF RECORDS. Vendor shall keep full and accurate records in connection with the meals covered by this Agreement. All such records shall be kept on file for three (3) years after the end of federal fiscal year to which they pertain or any other period which the Secretary of Agriculture may from time to time designate. Sponsor or the auditors of USDA/California Department of Education, upon request, shall have access to all such records for audit and review at a reasonable time and place. Sponsor's authorized representatives and the representatives of USDA/California Department of Education shall have the right to conduct on-site review of the food service operation. VII. GENERAL PROVISIONS A. TERM AND TERMINATION. The term of this agreement shall commence June 15, 2009 and shall terminate September 18, 2009, provided, however, that either Sponsor or Vendor may terminate this agreement by giving to the other party at least seventy-two (72) hours prior written notice thereof. Meals will be served Monday through Friday (except July 4 and September 1, 2009, where applicable to legal Holidays). B. CONTINGENT OF STATE/FEDERAL AGREEMENTS. Sponsor and Vendor understand and agree that this agreement is contingent upon the execution of underlying agreements with the United States Department of Agriculture or agencies thereof. Consequently, neither 6 Sponsor nor Vendor shall have obligation to perform, and this agreement shall be of no force and effect until such time as such underlying agreements have been duly executed. Upon demand, Sponsor shall supply Vendor with copies thereof. C. HOLD HARMLESS. Vendor agrees to indemnify and hold harmless Sponsor, its agents, employees and officers against any and all claims, demands, damages, liabilities, costs, suits or expenses, arising out of any act or omission of any officer, agent or employee of Vendor or resulting from the condition of any property owned or controlled by Vendor. Sponsor agrees to indemnify and hold harmless Vendor, its agents, employees and officers against any and all claims, demands, damages, liabilities, cost, suits, or expenses arising out of any act or omission of any officer or employee of Sponsor or resulting from the condition of any property owned or controlled by Sponsor. D. STATUS OF VENDOR. Neither Vendor nor any of its officers, employees or agents are, nor shall they be deemed for any purpose, employees of Sponsor nor shall they be entitled to any rights, benefits or privileges of Sponsor's employees. E. NON-ASSIGNMENT/SUBCONTRACTORS•: This Agreement is non- assignable without prior written consent of Sponsor's City Council. Any attempt by Vendor to assign any of its duties, obligations and responsibilities shall be void and shall render this Agreement void forthwith. F. TIME OF ESSENCE. Time is of the essence in the pertormance of Vendor of its obligation hereunder. G. REMEDY FOR NON-PERFORMANCE. In the event Vendor fails to perform any or all of the tasks required by this Agreement, Sponsor reserves the right to perform such tasks not performed by Vendor. Vendor shall be liable to Sponsor for all reasonable costs incurred in such performance. Sponsor shall not exercise any remedy available upon the occurrence of Vendor's failure to perform until: 1. Written notice specifying any/all items of non-performance is given to Vendor; and 2. Vendor shall have failed to correct ..the specified items of non-performance within forty-eight (48) hours of notice thereof. H. ADMINISTRATION. Any other designee(s) of the City Manager is authorized and directed for and on behalf of the City, to administer this Agreement and all related matters; and any decision of the City Manager or his designee(s) in connection herewith shall be final. I. NOTICES. Unless otherwise required by the context of specific provision of this Agreement, all notices or communications hereunder shall be in writing and shall be deemed duly given if personally delivered or mailed first class, postage prepaid to the following addresses: 7 ATTENTION: PERRY BRENTS To: Sponsor: City of Lynwood Recreation and Community Services 11301 Bullis Road Lynwood, CA 90262 ATTENTION: OFFICE OF BUSINESS SERVICES To Vendor Lynwood Unified School District 11321 Bullis Road Lynwood, CA 90262 SPONSOR: City of Lynwood, a Municipal Corporation BY: Attest: BY: Maria Quinonez, City Clerk Roger L. Haley, City Manager Maria T. Santillan, Mayor Date APPROVED AS TO FORM: APPROVED AS TO CONTENT: Fred Galante Perry Brents, Director City Attorney Recreation & Community Services VENDOR: Lynwood Unified School District of Los Angeles County BY: Dr. Dyhan Lal, Superintendent Date Lynwood Unified School District 8 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD AUTHORIZING THE MAYOR TO EXECUTE THE ATTACHED AGREEMENT BETWEEN THE CITY OF LYNWOOD AND THE LYNWOOD UNIFIED SCHOOL DISTRICT TO PROVIDE MEALS FOR THE SUMMER FOOD SERVICE PROGRAM WHEREAS, the City of Lynwood and the Lynwood Unified School District have partnered to present the Summer Food Service Program for the past nineteen years; and WHEREAS, food provided for the program must come from a certified Vendor who is approved by the California State Department of Education (DOE) and the United States Department of Agriculture (USDA); and WHEREAS, the Lynwood Unified School District is approved for Summer school feeding and is certified by the USDA as a Vendor for the Summer Food Service Program; and WHEREAS, upon agreement, the Lynwood Unified School District would be the Vendor agency responsible for providing meals to the City of Lynwood's Summer Food Service Program; and WHEREAS, the cost to operate the program estimated at $78,650, is entirely reimbursed to the City by the Department of Education through the Summer Food Service Grant. NOW, THEREFORE, THE CITY OF LYNWOOD DOES HEREBY FIND, ORDER, AND RESOLVE AS FOLLOWS: Section 1. The Mayor is authorized to execute the attached agreement between the City of Lynwood and the Lynwood Unified School District to provide meals during the months of June through September 2009. Section 2. This Resolution shall take effect immediately upon adoption. PASSED, APPROVED AND ADOPTED THIS 2nd day of June 2009. T. Santillan, Mayor ATTEST: Maria Quinonez, City Clerk 9 APPROVED AS TO FORN! Fred Galante, City Attorney APPROVED AS TO CONTENT: Roger L. Haley, City Manager Perry, Director Recreation & Community Services 10 STATE OF CALIFORNIA } } COUNTY OF LOS ANGELES } I, the undersigned City Clerk of the City of Lynwood, do hereby certify that the above and foregoing Resolution was duly adopted by the City Council of the City of Lynwood at a regular meeting held at City Hall on the 2nd day of June 2009, and passed by the following votes: AYES: NOES: ABSENT: ABSTAIN: Maria Quinonez, City Clerk STATE OF CALIFORNIA } } COUNTY OF LOS ANGELES } I, the undersigned City Clerk of the City of Lynwood, and Clerk of the City Council of said City, do hereby certify that the above and foregoing is a full, true and correct copy of Resolution No. on file in my office and that said Resolution was adopted on the date and by the vote therein stated. Dated this 2nd day of June, 2009 Maria Quinonez, City Clerk it AGENDA STAFF REPORT DATE: June 2, 2009 TO: Honorable Mayor and Members of the City Council APPROVED BY: Roger L. Haley, City Manage ~~~ PREPARED BY: G. Daniel Ojeda, P.E., Director of Public Works/City Engineer Josef Kekula, Civil Engineering Associate SUBJECT: Proposition A -Excess Funds Recommendation: Staff recommends that the City Council adopt the attached entitled resolution: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD APPROVING THE APPLICATION FOR PROPOSITION "A" EXCESS GRANT FUNDS FROM THE LOS ANGELES COUNTY REGIONAL PARK AND OPEN SPACE DISTRICT FOR THE HAM PARK EXPANSION, POCKET PARKS AND CARNATION PARK IMPROVEMENTS AND AUTHORIZING THE MAYOR OR DESIGNEE TO EXECUTE THE AGREEMENT". Background: The City was recently notified that Excess Proposition "A" funds in the amount of $325,000 have been allocated to the City of Lynwood. These ,funds may be used for parks, recreation, open space acquisition, and capital improvement projects related to open space. Discussion & Analysis: To secure these funds an agreement must be executed between the City and the County of Los Angeles. Staff was notified that the following projects were to be considered for this funding: the Ham Park Expansion (west side) $50,000, Carnation Park $175,000 and four Pocket Parks $100,000. ITEM 18 Fiscal Impact: As these funds are reimbursable, there is no fiscal impact to the City; however, funding will need to be transferred to the project. Coordinated With: City Manager's Office City Attorney's Office City Clerk's Office Finance Department 2 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD APPROVING THE APPLICATION FOR PROPOSITION "A" EXCESS GRANT FUNDS FROM THE LOS ANGELES COUNTY REGIONAL PARK AND OPEN SPACE DISTRICT FOR THE HAM PARK EXPANSION POCKET PARKS AND CARNATION PARK IMPROVEMENTS AND AUTHORIZING THE MAYOR OR DESIGNEE TO EXECUTE THE AGREEMENT WHEREAS, the people of the County of Los Angeles on November 3, 1992 and November 5, 1996 enacted Los Angeles Proposition "A", Safe Neighborhood Parks, Gang Prevention, Tree Planting, Senior and Youth Recreation, Beaches and Wildlife Protection (the Proposition), which among other uses, provides funds to public agencies and nonprofit organizations in the County for the purpose of constructing and developing at-risk youth recreation and service; and WHEREAS, the Proposition also created the Los Angeles County Regional Park and Open space District (the District) to administer the funds; and WHEREAS, the District has set forth the necessary procedures governing applications for grant funds under the Proposition; and WHEREAS, the District's procedures require the City to certify by resolution the approval of the application(s) before submission of said application(s) to the District; and WHEREAS, the City certifies through this resolution that the application is approved for submission to the District; and WHEREAS, the City will enter into a Contract with the District for the performance of the Project as descript in the application. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES HEREBY FIND, PROCLAIM, ORDER, AND RESOLVE AS FOLLOWS: Section 1. That the City Council approves the filing of an application with the Los Angeles Regional Parks and Open Space District for funds allocated under Proposition A for the Ham Park Expansion Project, Carnation Park Project and Pocket Parks Project. Section 2. That the City Council certifies that the City understands the assurances and certifications in the application form. Section 3. That the City Council certifies that the City understands its obligation to operate and maintain the property(s) in perpetuity. Section 4. That the City Council authorizes the Mayor, or designee, as agent of the City of Lynwood to conduct all negotiations, and to execute and submit all documents in a form approved by the City Attorney, including, but not limited to, applications, agreements, amendments, payment requests and so forth, which may be necessary for the completion of the project as described in the application. Section 5. This resolution shall take effect immediately upon its adoption. Section 6. The City Clerk shall certify as to the adoption of this Resolution. PASSED, APPROVED and ADOPTED this 2"d day of June, 2009. Maria T. Santillan Mayor 4 ATTEST: Maria Quinonez City Clerk APPROVED AS TO FORM Fred Galante City Attorney Roger L. Haley City Manager APPROVED AS TO CONTENT: G. Daniel Ojeda, P.E. Director of Public Works /City Engineer STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) I, the undersigned, City Clerk of the City of Lynwood, do hereby certify that the above and foregoing resolution was duly adopted by the City Council of the City of Lynwood at a regular meeting held in the City Hall of said City on the day of ,and passed by the following vote: AYES: NOES: ABSENT: City Clerk, City of Lynwood STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) I, the undersigned City Clerk of the City of Lynwood, and Clerk of the City Council of said City, do hereby certify that the above and forgoing is a full, true and correct copy of Resolution No. on file in my office and that said resolution was adopted on the date and by the vote therein stated. Dated this day of , City Clerk, City of Lynwood 6 AGENDA STAFF REPORT DATE: June 2, 2009 TO: Honorable Mayor and Members~of the~City Council APPROVED BY: Roger L. Haley, City Managet`~gSY' Robert S. Torrez, ACM - Admin & Comm Svcs PREPARED BY: Alfredo J. Lopez III, Director of Human Resources Jeff Jones, Safety/Risk Analyst SUBJECT: Claim for Damages of Benito Preciado Recommendation: Staff recommends that the City Council reject the claim of Benito Preciado v. City of Lynwood and tender the claim for indemnification to California Western Arborists. Section 602 of the contract requires that this company indemnify the City against all expenses arising out of work performed in accordance with this agreement. Background: On May 7, 2009 Mr. Preciado filed a claim for damages alleging property damage due to a tree branch that fell on his vehicle which. was parked at the accident location of 4103 Josephine Street, Lynwood, CA 90262. The Council may also recall that Ms. Preciado discussed this claim during public comment on Tuesday, May 19~h, where she asked for accommodation of an expedited review which we hereby provide. Discussion 8 Analysis: Neighborhood Services confirmed that the tree was last trimmed in November 2008. Staff reports that the tree was not diseased and the City received no prior complaints. In addition, weather records were checked for May 5, 2009 and at the time of this incident (2:05 P. M.) wind speeds ranged from 1-17 miles per 19 hour with occasional speeds to 20 mph. The daytime temperature did not exceed 75 degrees. The claimant's own a 1993 Chevy Suburban and the vehicle is insured through Granite State Insurance Company. Estimates that accompany the claim form ranged from $60 to $250. However, please know that although this claim for damages could be considered relatively small in value when compared to other claims, the City's recommended action of denying this claim due to the tree being trimmed in November 2008 is consistent with city practice. Pursuant to Government Code Section 835, the claimant must establish that the tree posed a dangerous condition at the time of the incident. Government Code Section 830 defines a dangerous condition as one that creates a substantial risk when property is used with due care in a reasonable manner. Additionally, the claimant must establish the existence of the dangerous condition was created by the negligence of the City or an employee of the City was aware of the dangerous condition. There was no indication that the City had prior notice of a dangerous condition. The City entered into an agreement with California Western Arborists for tree trimming services. Section 602 of the contract requires that this company hold- harmless, indemnify and defend the city against all claims, costs, expenses, damages liability and judgments arising our of California Western Arborists work performed in accordance with this agreement. High winds were not a factor in this circumstance, the tree was not diseased, and it was trimmed in November 2008. In accordance with Section 602 of the contract, the City should reject the claim and tender the indemnification of this matter to California Western Arborists. Fiscal Impact: The action recommended in this report will not have a fiscal impact on the City. Coordinated With: Neighborhood Services Finance and Administration Attachments: Liability Administrator Report Claim for Damages Form Repair Estimates Tree or Shrub Removal Request Tree Report + Photos 2 i4~o South VaLle}~ Fista llrive, Suite z3o Diamond Bar, California g1~6g Sure May 28, 2009 Alfredo Lopez Director of Human Resources City of Lynwood 11330 Bullis Road Lynwood, CA 90262 Re: Benito Preciado v. City of Lynwood Date of Loss -May 5, 2009 Our Claim Number - 105233 Dear Mr. Lopez: Telephone (qo9) S6ro8x6 Fax(9o9)860-3998 The following is a report of our findings and recommendation concerning the claim for damages presented to the City of Lynwood by Benito Preciado on May 7, 2009. Description of Incident The claim arises from an automobile property damage claim that occurred on May 5, 2009. The accident location is 4103 Josephine Street in the City of Lynwood, California. The claimant is alleging that a City owned tree dropped one of its branches upon his parked vehicle. As a result he is pursuing a property damage claim. Liabili Liability will not adhere to the City in this matter. The City last trimmed the area in November 2008. Additionally, the City received no prior complaints regarding the subject tree. The weather conditions for the date of May 5, 2009, indicate that the wind speed was between 17 mph with wind up to 20 mph at or about the time (2:05 p.m.) of this loss. bn the date of loss the temperature averaged 70.0°F. The claimant maintains that he was harmed by a dangerous condition of the City's property, i.e. the tree. To establish this claim, the claimant must prove all of the following: 1. That the City owned/controlled the property; 2. That the property was in a dangerous condition at the time of the incident; 3. That the dangerous condition created a reasonably foreseeable risk of the kind of the incident that occurred; 4. That negligent or wrongful conduct of the City's employees acting within the scope of his or her employment created the dangerous condition [or] The City had notice of the dangerous condition for enough time to have protected against it; 5. That claimant was damaged; and 6. That the dangerous condition was a substantial factor in causing claimant's damage. A dangerous condition is a condition of public property that creates a substantial, as dist'.inguished from a minor, h'ivial or insignificant, the risk of damage to the general public who are using the property with reasonable care and in a reasonably foreseeable manner. A condition that creates only a minor risk of dvnage is not a dangerous condition. The claimant must prove that the City had notice of the dangerous condition before the incident occurred. To prove that there was notice, the claimant must prove that the City latew of the condition and knew or should have known that it was dangerous. A public entity ]mows of a dangerous condition if an employee knows of the condition and reasonably should have informed the entity about it. Furthermore, the City la~ew of the condition or should have known that it was dangerous. A public entity knows of a dangerous condition if an employee knows of the condition and reasonably should have informed the entity about it. Or that the condition had existed for enough time before the incident and was so obvious that the City reasonably should have informed the entity about it. Last but not least the City has entered in agreement with California Western Arborists, Inc. for its tree trimming services. Under Section 602 of the agreement it provides, in pertinent part, that California Western Arborist, Inc is to indemnify, defend, and hold harmless the City from and against any and all claims, costs, expenses, damages, liabilities, and judgments arising out of California Western Arborist's performance of work detailed in the agreement Damaees The claimant has submitted three repair estimates for the replacement of a driver's side rear window of a 1993 GMC Suburban. The estimates are for $95.00, $160.00, and $250.00 respectively. Recommendation The proximate cause of this loss was an intervening cause (wind) which could not have been avoided. It is important to note that there does not appear to be any decay in the failed limb, and given the tree's recent trim history simple weight of the canopy is not at issue. In accordance with the terms of the agreement, the City should reject the claim and tender the indemnification of this matter to California Western Arborist, lne. Sincerely, Joel Meza Liability Administrator (909)396-5946 Cc: Jeff Jones, Safety/Risk Analyst City of Lynwood (Rev. 8/02) LIABILITY S~ ~..~ c) E C E! V E D DATE FILED Ty pF Lys City Claim Reporting Form CLAIM NO 2 3 - 20 ForalLPecs4ns oc Ergnerty DEPT. ,7L S . j-r-a~ EEMAY ~-~~~~~1yy1fi4 CIT'E' ^~ ! ~I~IWdOD C TY 1= LYIff~OITDEL ~" I •' WARD NORTH AMERICA, LP i 1330 BULLIS ROAD P E ~ S ~ tv ~ E L (Original Claim Form) LYNWOOD, CA 90262 Third Party Administrator 1. CLAIMS FOR DEATH, INJURY TO PERSON, OR TO PERSONAL PROPERTY, MUST BE FILED NO LATER THAN SIX (t7 MONTHS AFTER THE OCCURRENCE (Gov. Code; Sec. 91 l.2). 1. CLAIMS FOR DAMAGES TO REAL PROPERTY MUST BE F[LEll NOT LATER THAN ONE (I) YEAR AFTER THE OCCURANCE (Gov. Code, Sec. 911:2): 3. READ ENTIItE CLAIM FORM BEFORE FILING. 4. ATTACK SEPARATE'SHEETS; IF NECESSARY, TO GIVE FULI;. DETAILS. Name of Claimant: ~ ~G(a / . ~-°t7`l'7X~ lJIZI'I ITD 1'~Q-s!~G~Qi? Date of Birth: ~~~/ S~ S~ocyial Security No.: Home address of_cllaimant: '~~gq ~~ (,~(J~,l City: (ZC~ State: ~A_ Zip Code: ~i~~. Telephone No.: ~~~~~ ~~~ Give address to which you desire notice or communicatio~npto be sent regarding this claim/:y ~/~~9 ~~ ~ City: ~1~1 f11A 1']F1(iV State: CA Zip Code: "f~a•(p Date of Accident: ~~~ ~.f((1 fj ~ 'iY'~`-Time: AM ~M ~ Place of Accident: How did damage or in'u occur? (Give Give total ,~tnoudj ofclaim (include estimate amougS of any prospective injury or damage: Were $heriffs'at the scene? Ybs No " File No. (!f kiiovinJ: - .. Y -, :.F. .. .. What parficithtt"ae orodtiss5bii do yoti`claun caused the ury or Aamage? Give the name of the; City employee causing the injury br'datnagt; iflrnowd: How was amount of claim oomputedT (Be Please attach two estimates. , bills, wage rate repair estimates, etc.) itures ma~e on account of accident or injury (date and item}: ~Q5 ~ i b~(1 e Q,-/ Name of address of witnesses, doctors and hospitals: `~`-t/a PLEASE READ THE FOLLOWING CAREFULLY For aI I accident claims, place on following diagram naittes of streets, including Nordi, Easi,:South and West; indicate place of accident by `JC" and by showing house numbers.or distance to.street comers. If City vehicle.was involved, designate by letter "A" location of City vehicle whemyou fits( saw.it,' and by "B" location of yourself or your vehicle when you first saw City vehicle; location ofCity vehicle at the tithe of accident by "A-I ".and location of yourself or your vehicle afthe time of the accident by "B'-1" and the point of impact by "X". Note: If diagrams below do not fit the situation, attach a proper diagram signed by claimant FOR AE)"['OMOBII,E ACCIDENT'S /i~/~\ /~ ~_~ ~ ^~~~ F/OR OT'[tER ACCIDENT'S s~~ -~~~~ Pt-F rtes ~ sa~wwc ,U ~ ~~ 1 HAVE READ THE FOREGOING CLAIM AND KNOW THE CQNTENTS "1;HEREOF: AIdD CERTIFY THAT'THE SAME IS TRUE OF MY OWN KNOWLEAGE EXCEPT AS TO THOSE MATTERS WEIICH ARE HERE STATED UPON..MY 1NFORMATIt#N. AND BELIEF. ANp,:AS TO THOSE MATTERS I BELIEVE Ti' TO BE TRUE.. I CERTIFY.(OR ~EGE.ARE) UNDER PENALTY OF PERJURY THAT THE FOREGOING I,S TRUE AND CORRECT. ~~ ~ . CALIFORNIA INSURANGE IDENTIFICATION GARp COMPANY NUMBER COMPANY 23809 GRANITE STATE INSURANCE CO POLICY NUMBER EFFECTIVE DATE EXPlRATICMt DATE ' AIG 4957603 02/11/09 02/11/10 YEAR MAKEIMODEL VEHICLE IDEkiIFICATION NUMBER 93 GMC SUBRBN25O0 1GKGt26N4PJ72594O PRODUGER/COMPANY ISEiUING CARD VAN-ROSS tNS SERVICES P 0 BOX b37 LYNwOOO, CA 9oz6z 310-764-191$ wsuRED 4289TWALNUNTAAVE LYNWO00, CA 90262 Thi6 popsy meetsihs mfnfnwm OOY9fpp9g requireq b11 law in aeapan 18066. '_.... _ .. _ -- _ _ _ Bf.ElMkiUiT/lNI.IdEi?!lMA7LON_QN_EtEtiEC~Ir..&!P_E ....... . YIIIIIGN REGISTRATION CARD VALID FROM: 09/28/2008 TO: MAKE YR MODEL YR 1ST SOLO YLF CLASS "YR TYPE VEH GMC 1993 1993 CN 2002 12S BODV TYPE MODEL MP MO SW G PW TYPE VEHICLE USE DATE ISSUED CC/ALCO DT FEE RECVO PIC AUTOMOBILE 09/22/08 19 09/22/08 9 REGISTERED OWNER PRECIADO BENITO 4289 WALNUT AVE LXNWOOD CA 90262 LIENHOLDER o9/zs/zoo9 TYPE LIC LICENSE NUMBER 11 3FDH101 YEHIC LE 10 NUMBER 1GKGC26N4PJ725940 STICKER ISSUED R8714496 PR EXP DATE: 09/28/2008 AMOUNT PAID $ 82.00 .MOUNT OUE AMOUNT RECVO $ 82.00 CASH 82.0'0 CHCK CRDT H00 581 34 0008200 0020 CS HOO 092208 11 3FDH101 990 oats ~-~~~p9. M ~~i i~ ¢~2~°~«~a~ Reg. No. Clerk AccooM Forward 1 2 3 /~ 4 5 6 7- 8 9 10 17 12 73 14 ~' ~+ 75 ... ~ .'~.~. ~ ~ .. . is Your Account Staled to Date - II Enor is Found. eturn et Orww OFFICE COPY Pam &, J Auto 6laiss - ••"TOCAYO" swn~E~e~t~mEkvadao ~~r~~ 7625 /Uameda St, Los Anpalas, CA 90001 GeNovennl Aak /or JAV/ER (~) 8/S-77Y9 Tel.: (828) b86.9471 710 •nA•nA9 I m . I ll%xi WWI' ~4 I~ =. ~1' ~k ~ ~ ~~,' ~, ~~ City of Lynwoatl Parkway Tree Property Damage Iaep®rt DATE: ~''I ~`Y'~ C- o `iTIME: J ~~ • /S~ +~ • h WEATHER CONDITIONS: ~ ~ T' /'i } ~ ADDRESS/LOCATION OF' PARKWAY TREF,: I--/ l 0 3 ~ nS~'h `i ~ "~ ^ DAMAGED ALJTOMOBLLE INFORMATION O~YNER'S NAME: ~ F LY/7 ~ ~Yr C ~ ~ w U OWNER'S ADDRESS: ~ ~ ~~ ~'~ ~ ~' ~~ ~/U OWNER'S PHONE NUMBER: 6.3 S _ ~ `/ /~ VEHICLE LICENSE NUMBER: 3 t- u N ~ v ~ VEHICLE REAR MADE, MAKE AND MODEL NUMBER: I qy~ Ca H G .f/ ~ vL~ INSURANCE COMPANY OR AGENCY NAME AND POLICY NUMBER:. LOCATION OF AUTO WHEN DAMAGED: y/ 0 3 0 -r Lf~l~ji ~ ~' LOCATION WHERE AUTOMOBILE CAN BE SEEN: y.Z ~ J ia/ w Z `1' v ;! LOCATION OF DAMAGED PROPERTY TXPE OP DAMAGED PROPERTY: LOCATION OF DAMAGED PROPERTY: OWNER'S NAME: OWNER'S PHONE NUMBER: OWNER'S INSURANCE COMPANY NAME AND POLICY NUMBER: TYPE OF DAMAGE TO Eit`TY: (j Y~/F~~• /tsl~ /~.a r /'( [/~ n oCD ~/ Ci/9'1't C~ t/ o U' 1 '~ DATE TREE TRIMMED: C'M Y~7~ ? D r9 ~' EMPLOYEE NAME: / ~T ~,~6 EMPLOYEE SIGNATURE: SUPERVISOR SIGNATURE:y'~ri f - ~-wc~dtw~ Occ Jrr~sd on. h'~ S`~O j CC117Y1F "' ~f ~ ~ ~ ct^~'JM `.~~"-~ ;~,.; , ~~;. ~[~,: ~. pp,Yr . Y}+~ S:F ;?(, v~ ' .. r ~~: g y. ~ j> t~ .r ~~, ~r i t ~ . ,: >r b i e 1 ,~ @' M � X, �t g; t .'< .: �a £- "' �. �� - E§ &': d df �} C 4 � � X, �t �` d t .'< .: �a k "' �. �� - E§ 6 y r ~~ d ~ ~.. § ~ ... , s~': ~ti'' l AGENDA STAFF REPORT DATE: June 2, 2009 TO: Honorable Mayor and Members of the City Council APPROVED BY: Roger L. Haley, City Mana r PREPARED BY: Fred Galante, City Attorney SUBJECT: Review of City Treasurer's Check Signing Policy & Procedures Recommendation: That the City Council direct the City Attorney to prepare revisions to the Check Signing Policy & Procedures adopted by the City Treasurer's Office for consideration and approval by the City Council at a future meeting. Background: The City Attorney's office was asked to review the January 9, 2008 Inter-Office Memo from the City Treasurer describing the Check Signing Policy & Procedures ("Policy") implemented by the Treasurer's Office effective February 5, 2008 for consistency with legal requirements. Following such review, the City Attorney's office opines that, although having a procedure to clarify the process to approve payments by the City of Lynwood is important, the Policy could be significantly improved to streamline the approval process, while preserving the safeguards sought by the Treasurer's Office. Discussion & Analysis: The following summarizes the suggested revisions to the Policy: 1. Citv Council Approval. As with all policies that apply broadly to all City departments for critical City functions, the Policy should be approved by the Council. Since the Policy was adopted by the Treasurer's Office, without Council concurrence, it does not have the legal effect that aCouncil-adopted policy would have to require compliance by all departments. 2. Consistent with Municipal Code. The Policy must uphold Council direction on payment of warrants and be consistent with the Lynwood Municipal Code a other Council-adopted policies. For example, the Policy provides that a $5~0 ZD purchasing limit applies to the Mayor, Council and "all individuals who have purchasing authority". This requirement conflicts with the Lynwood Municipal Code, at Sections 6-3.7.b.2, 6-3.9 d.3, and 6-3.10; which authorize the purchasing officer (defined as the City Manager or designee under section 6-3.1) to purchase goods or services within iris discretion if under $15,000. 3. Clarification of Requirements. The Policy should clarify how many authorized signatures and the type of approval stamp is required before checks may be issued. 4. Backup Paperwork. The Policy should clarify what qualifies as appropriate backup paperwork to support a payment request. 5. Duplicative Verification Requirements. The Policy should eliminate inefficient duplication in verification of invoices between the Treasurer and Finance offices. 6. Treasurer or Designee Should Be Regularly Available to Process Check and Prepay Requests. To avoid having the City pay late fees on invoices, either the Treasurer should be regularly available during City hours or a person in addition to the Treasurer should be designated as a back-up to approve checks so as to avoid payment delays. 7. Stop Payments. The Policy does not explain when stop payments may be made. The Policy should be revised to explain if and when stop payments are authorized. To address the concerns raised above, the City Council is requested to direct the City Attorney to prepare appropriate revisions to the City Council's Policy for consideration at a future City Council meeting. Fiscal Impact: The action recommended in this report will not have a fiscal impact on the City. However, the recommended policies should improve the processing of payments to vendors, and help the City avoid costly late payments and penalties. Attachment: 1. January 9, 2008 Inter-Office Memo from the City Treasurer describing the Check Signing Policy & Procedures 2 DATE: January 9, 2008 TO: Roger L. Haley, City Manager CC: Maria T. Santillan, Mayor May Tan, Interim Finance Director FROM: Salvador Alatorre, City Treasurer PREPARED BY: Sheila Harding, Deputy City Treasurer SUBJECT: Check Signing Procedures Effective January 15, 2008 In reference to Government.. Code Section 41003 a City Treasurer shall pay out money only on warrants (or checks if an alternative method of payment has been adopted by the city) signed by legally designated persons. Singe the Treasurer is held to a high degree of care with respect to the payment of warrants .under the proper procedure, there are important procedural and substantive requirements applicable to the disbursement of public~furtds. Beginning January 15, 2008 the following procedures will be adopted by the Treasurers office. Changes will be made, as needed at the discretion of the Treasurer. POLICY & PROCEDURES Checks presented to this office for signature must be incompliance with the following request effective January 15, 2008. 1. Approval stamp 2. Authorized signer must sign his/her name and title in space provided on the stamp, then print his/her name underneath his/her signature. It is the responsibility of the authorized signer to update the Purchasing Authority signature form in the Finance Department indicating who is authorized to sign on his/her behalf when he/she is on vacation or out on sick leave. The Treasurer's office will not accept any other signature other than what is on the form. 3. Date 4. Name of Department 3. Provide back up paperwork supporting payment request All checks must be incompliance with the Treasurer's affice request before being sent to the Treasurer's office for signature. Checks that are not incompliance will either be sent to the City Manager for his signature or returned unsigned to the Finance Department and will be signed at a later date. Please note that it takes anywhere from two to three days to transfer, verify and to affix signature. If checks are given to the Treasurer Department late afternoon, funds will not be moved until the following business day. FINANCE DEPARTMENT Before sending checks to the Treasurer's office for signature, the Finance Department must verify that the invoices are incompliance with the Treasurer's office policy. If not, they are to return the request for payment back to the designated department. The authorized signer sheet must be updated each time there is a permanent appointment change in signers with a copy given to the Treasurer's office. INVOICES FROM LAW FIRMS Each entry must be verified and initialed by the person reviewing the invoice. Stamped with the approval stamp and signed according to procedures noted above. MULTIPLE INVOICES FROM SAME VENDOR Multiple invoices from same vendor must have the approval stamp on each invoice and signed according to the procedures noted above. TRAVEL AND MEETING EXPENSE CHECKS , Travel and Meeting checks are to be prepared in time to be included on the warrant run. DISBURSEMENT OF CHECKS All signed checks will be retumed to the Finance Department on Thursdays, (close to the end of the day) for disbursement. If a holiday falls in the middle of the week, checks will not be released until that following Monday. At no time should the Finance Department send a vendor to the Treasurer's office for pick up. 2 PREPAY CHECKS There is an existing Administrative Policy for Vlrarrant Run Prepays in place. (See attached) All departments must plan ahead so that invoices are approved and submitted in time to be included on the regular warrant register. Prepays will be signed based on the availability of the Treasurer. If checks are signed by individuals outside of the Treasurer`s office, the Finance Department will notify the Treasurer's office in a timely manner so that the funds can be transferred. Checks should not be released without verifying with the Treasurer's office first. The Finance Department is to provide copies to the Treasurer office. EMPLOYEE PAYROLL CHECKS Payroll will submit paychecks every other Tuesday to the Treasurer for signatures. Checks must be accompanied with a control sheet. PURCHASING LIMITATIONS Already in place is a $500 purchasing limit for the mayor and council. This policy should be extended to include all individuals who have purchasing authority. Procedure -For any purchase made by the mayor or a councilperson there must be a purchase requisition and a purchase order. Any purchase above $500 will require that notice be give to each council member. If no objections are made within five (5) days, the purchase order will be processed. (See Administrative Policy- Purchasing Limitations) CASH RECONCILIATION PROCEDURERS On the 10th of each month, the Finance Department will deliver to the Treasurer's Office reports listing all expenditures and receipts by fund. Also, all journal entries shall be reported at this time. AGENDA STAFF REPORT DATE: June 2, 2009 TO: Honorable Mayor and Members of the City Council APPROVED BY: Roger L. Haley, City Manager PREPARED BY: Lorry Hempe, Assistant City Manager Ernie Nishii, Housing Manager SUBJECT: Infrastructural Project Enhancements for 11300 Atlantic Affordable Senior Housing Project Recommendation: Staff recommends that the City of Lynwood adopt the attached resolution entitled: "A RESOLUTION OF THE CITY OF LYNWOOD AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT HIRING CEDARS ENGINEERING CONTRUCTION, INC. TO GRIND AND OVERLAY SANBORN STREET FROM PROJECT LIMITS TO VIRGINIA STREET AND PROVIDE ENVIRONMENTALLY FRIENDLY BAMBOO FLOORING FOR THE COMMUNITY ROOM LOCATED AT 11300 ATLANTIC AVENUE." Background: On February 17, 2009, after a completed Request for Proposal, the Lynwood Redevelopment Agency and City of Lynwood approved a Disposition and Development Agreement (DDA) with Cedars Engineering Construction, Inc. (Developer). Under the DDA, the Developer paid the City $320,000 for the property and borrowed $256,000 at 6% interest to improve the site. The DDA required the developer to pave Sanborn street between Atlantic avenue to the property line. The DDA also called for standard flooring in the community room. The Developer has installed several extra features in the project including a flagstone surface concrete and high quality windows. Discussion & Analysis: After review of the poor street conditions further along Sanborn Street between the property line and Virginia Street, and in light of the expectations of Federal Stimulus monies to revitalize the street from Virginia Street to Louise street, staff has determined that it is more efficient and appropriate for the Developer to AGENDA continue to pave Sanborn Street from Atlantic Avenue to Virginia Street. Utilizing the same Developer for this section of the street, rather than leaving the small section incomplete, will assist and enhance not only the local community, but also the Senior Housing Project, now called "The Gardens'. Lynwood Municipal Code chapter 6 "Finance and Taxation", section 6-3.15; Change Order; States that the City Manager has the authority to approve any modification to the contract and change order to one contractor. The dollar amount of all such modifications relating to any one contract shall not exceed $50,000 or 25% of the original contract price, whichever is less. Any modification or change order above this amount shall require City Council approval. In the present case, after an authorized Request for Proposal and bidding procedure, the original Agreement included $454,000 of repairs and $256,000 in supplemental repairs for a total of $710,000. The additional $26,800 requested is well within the margin allowed by the code for project enhancements. The standard flooring proposed for the community room is high in quality and up to all current Federal and State requirements. Pursuant to the more recent mandates for the use of "green" technologies, Staff researched the possibility of utilizing renewable materials such as "green" bamboo for the flooring at 11300 Atlantic Avenue. Bamboo is a renewable resource widely used as a substitute for the slow growing hardwoods. The use of Bamboo flooring rather than standard flooring will create a warm environment for the Seniors, last longer than the standard materials, at an additional cost. The difference in cost between the standard flooring and the bamboo is will be paid by the Developer and the Agency. The Agency's share of the cost is $3,675. Fiscal Impact: The fiscal impact of the Project Enhancements on the FY 08-09 budget is $26,800 which is calculated as follows: $23,125 Grind and Overlay Sanborn Street from 11300 Atlantic Property line to Virginia street. 3 675 Difference in cost between "green" bamboo flooring and standard flooring less Developer's share. $26,800 Total Coordinated With: Finance Department City Attorney Public Works Development Services Attachment: Resolution 2 RESOLUTION NO. A RESOLUTION OF THE CITY OF LYNWOOD AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT APPROVING THE HIRING OF CEDARS ENGINEERING CONTRUCTION, INC. TO GRIND AND OVERLAY SANBORN STREET FROM PROJECT LIMITS TO VIRGINIA STREET AND PROVIDE ENVIRONMENTALLY FRIENDLY BAMBOO FLOORING FOR THE COMMUNITY ROOM LOCATED AT 11300 ATLANTIC AVENUE WHEREAS, the City of Lynwood ("City") is a Municipal Corporation public body, corporate and politic, organized and existing; and WHEREAS, by previous action of the Lynwood Redevelopment Agency ("Agency") and the City Council of the City of Lynwood ("City Council") the Redevelopment Plan for the Agency's Project Area A was established by Ordinance No. 945 of the City Council on July 10, 1973, and has been amended from time to time; and WHEREAS, after the issuance of a request for proposal and full bidding process Cedars Engineering Construction Inc. was the successful bidder to conduct $710,000 in repairs to the senior housing complex ("The Gardens"); and WHEREAS, the Agency and City entered into a Disposition and Development Agreement with Cedars Engineering Construction Inc., to rehabilitate The Gardens and pave an immediately adjacent street; and WHEREAS, the required expense to complete repairs to the street on Sanborn street between the property line to Virginia Street meets the requirements of Health and Safety Code Section 33445; and WHEREAS, the proposed improvements will be a direct benefit to Project Area A as it is located within said project area; and WHEREAS, there is no other reasonable means to fund the paving of the street directly in front of The Gardens due to the absence of General Funds stemming from the current economic malaise; and WHEREAS, the payment of funds will assist in the elimination of the blighting conditions created by potholed streets and is consistent with page 6-17 of the Third Five Year Implementation Plan; and WHEREAS; based upon the current road conditions, the Sanborn street repair from the 11300 Atlantic avenue property line to Virginia Street is a necessary and fundamental component of the affordable housing units currently being rehabilitated at 11300 Atlantic avenue and said low income residents will be a direct beneficiary of the street improvement fronting the property; and WHEREAS, The Gardens will be deed restricted in the manner and required time span pursuant to section 33334.2 and 33334.3 of the California Health and Safety Code; and WHEREAS, Lynwood Municipal Code chapter 6 "Finance and Taxation", section 6-3.15; Change Order; states that the City Manager has the authority to approve any modification to the contract and change order to one contractor. The dollar amount of all such modifications relating to any one contract shall not exceed $50,000 or 25% of the original contract price, whichever is less; and WHEREAS, the total cost of the improvements and project enhancements is well within the authority set forth in the Municipal Code; and WHEREAS, the Agency is desirous of having installed flooring material which will be environmentally friendly, add warmth to the project, and provide a longer lasting flooring surface; and WHEREAS, layering analysis has occurred to ensure that the Developer pays a substantial portion of the improvements to the Community room located at The Gardens. NOW, THEREFORE, based on the evidence presented to the City, including the written staff report and oral testimony on this matter, the City Council of the City of Lynwood does hereby find, determine and resolve as follows: Section 1. The above recitals are all true and correct and are hereby adopted ~s findings. Section 2. The proposed project enhancements to improve Sanborn Street from The Gardens property line to Virginia Street is consistent with the Agency's adopted Third Five Year Implementation Plan for Project Area A; directly benefits Project Area A as it is within the project area; and directly benefits the low income residents at The Gardens. Section 3. The proposed bamboo flooring in the Community room at 11300 Atlantic Avenue is consistent with the City goals to ensure long lasting quality affordable housing. Section 4. The City Council hereby authorizes the City Manager of the City of Lynwood to execute an Agreement on behalf of the City of Lynwood for Cedars Engineering Construction, Inc. to build the street improvements on 2 Sanborn Street from 11300 Atlantic Avenue property line to Virginia street and to install bamboo flooring in the community center. Section 5. The Mayor and City Manager are authorized and directed to take such actions and execute such documents as may be necessary to implement and effectuate this Resolution on behalf of the City. Section 6. The City Clerk shall certify to the passage and adoption hereof. PASSED, APPROVED and ADOPTED this 2"d day of June 2009. Maria T. Santillan Mayor ATTEST: Maria Quinonez City Clerk APPROVED AS TO FORM Fred Galante City Attorney Roger L. Haley City Manager APPROVED AS TO CONTENT: Lorry Hempe Assistant City Manager 3 AGENDA STAFF REPORT DATE: June 2, 2009 TO: Honorable Mayor and Members of the City Council APPROVED BY: Roger L. Haley, City M PREPARED BY: Maria Quinonez, City Clerk ~I/~( Kristina Santana, Deputy City Cler ~S SUBJECT: Review of Board and Commission Members Recommendation: Staff recommends the City Council review the list of Board and Commission members. After review, the Council may wish to provide staff with direction in filling the current recently advertised vacancies. The City Council may further make any other adjustments to these Boards and Commissions, as it deems appropriate, in accordance with the rules outlined below and the Maddy Act. Background: Please find attached the current Board and Commission member list. In addition, attached are two public notices identifying vacancies in the Planning Commission, Youth Commission, and Veteran's Affairs Council. Discussion & Analysis: Per Ordinance No. 1584, and Subsections 2-12.1 through 2-12.6 of the Lynwood Municipal Code, describing the provisions of Board and Commission Members (Subsidiary Public Bodies), and the specific (2-12.4) appointment and term of members: a. Candidates for appointment to Subsidiary Public Bodies shall be nominated by a Council Member and confirmed by a vote of the Council. The appointed and confirmed candidates shall serve on the Subsidiary Public Bodies to which they have been appointed until the earlier of: 1. A replacement is presented to the Council for confirmation by the appointing Council member. r- ~; 2. The appointing Council Member's term in office has ended; or 3. The resignation of an appointee. b. Members of Subsidiary Public Bodies shall hold office until their successors are appointed, qualified and take office. c. Any and all provisions of this code relating to terms of office for members of Subsidiary Public Bodies are hereby repealed and shall be governed by the provisions of this section (Ord. #1584, 1). The duty of each Commissioner is to represent the appointing Council Member's interest (Lynwood Municipal Code sec. 2.22.d.1.). City Commission meetings are established to conduct City business. Members shall be residents of the City, and not officers or employees of the City. The City Council may remove any member of any Commission, Board or Committee at any time and without cause; provided, however, that any action of the City Council to remove a member of the Personnel Board from office prior to the expiration of his term shall not be effective unless approved by at least four (4) Councilmembers (Lynwood Municipal Code sec. 2-12.1). Fiscal Impact: Stipends for the Boards and Commissions are currently budgeted at a total of $50 per commissioner per meeting, excluding the Senior Advisory Council and the Veterans Affairs Council, which do not receive stipends. The action recommended in this report will not have a new fiscal impact on the City. Coordinated With: City Manager's Office City Attorney's Office City Clerk's Office Administrative and Community Services Attachment: Board and Commission Members -As of June 1, 2009 Public Notice -Planning Commission, Youth Commission and Veteran's Affairs Council 2 0 y p~ YG O ~,f Q E::€ rTi y E~ .& O 'd' U ~ E 5 V ~ n Y~e~. ~ O '~ C O Q v rv _O rl 0=0 ° I N t. ~ O p N N O y- cJ 0 n G N C~. O H O G _~ N ~ aCtl ~- O ~ ~ j ~,~ .7 E q ,t'. 0 3 ^ a W ~ W ~ O~ °' ~ ` c @ " ° O O ~ [4 C N N.N. m J~ C.1 `n 7 C~ a ' ~ rl ~ O y~~ a $ ~ ~, '~ ~'a . - ' E v . oo o E o~ ~ S >Q o o E v oo >ao > o y ~. o ~' `n 0 E W ~` ' E ms' v, N o do ~o m~ol V m CdN u ,yam { m ~~~¢ o f ~ ~.~~ ~ xti ~ a E.. FUV °~n o N ° .. 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A aka ° ~ n Qz ~ gg Cy ~ $55 1q3 0^ ~ m ~ rn a ' ~ rn m fYi ~ ~. W . y ~ O g C . E v N GO~ N m ~ N O O U ~ ~ N ~ ~ ~ r C 1^ U .....0]]] x U U k ~ ~ g o ~ $ b `I ~ EE ~~i ` ~ II G r F ~ i ! ~ G 9 C tl i p ~ y M Fi ~ O ~ Q ~ P'i ~ G O . i m U ~ 9 Fi q !A E E O ~ . , 7 i y ~~ i x ~~(A ~'~ M~p UQN i q~N ~. ^ Q~ ~ ~ 4 m 4K U ~ j $ ~ B ~No ° ~ .:~ a ~, ~ n g ~ ~m x~~ ~ ~~ a U co a &1 ° ~o ~ ~`I °^_ ~ ~ o I ~' r'`~i ~ 4 ~ ~ ( ~ 6 ~ m y $ 3 a 5 y }I o S LL b E i ~ ^I ~ V N ~ O `i ~ ~ N f A ~ '.~ [il {P d µ ' M - ~ ~ p 9 T ".1 A F O~ ~F E) a y ~ O E S i ~ 0 0 ~ A 'O O d N O~ ¢ U V ~ .U ~ ~ "' ` d g ~ ~ ~ ~~oS ~ ' ~ dk~ T n x j ° U N ~° O N od- q N ~ uo L ' ' _ ,e ~ . E ~ K m u V _ ^ coTV o~ ~.vn~woa~ OF UNSCHEDULED VACANCY (MADDY ACT) r~ .a~ .. t. ~.~ .~~~ ,.~ _~ ,, .. _~ ~.. , _,P ,~- ~ ~.~ _~_~~~ The City of Lynwood encourages interested Lynwood Residents to apply for current vacancies in the boards/commissions listed below. Each of the board/commission positions are for partial terms, set to expire on the dates listed below, unless earlier terminated in accordance with the Lynwood Municipal Code. • Personnel Board - 2 positions; expire December 2009 • Planning Commission - 1 position; expires December 2009 All of the members of the above board/commissions must be residents of the City of Lynwood. The responsibilities and qualifications of each board/commission listed above are further set forth in the Lynwood Municipal Code. _.~, CITY OF LYF-WOt7d ~~~~ ~~~ ~. T. OF UNSCHEDULED VACANCY (MADDY ACT) The City of Lynwood encourages interested Lynwood Residents to apply for current vacancies in the boards/commissions listed below. Each of the board/commission positions are for partial terms, set to expire on the dates listed below, unless earlier teF~minated in accordance with the Lynwood Municipal Code. Youth Commission 3 positions; 2 expire December 2011, 1 expires December 2009 Veteran's Affairs Council ' 1 position; expires December 2011 All of the members of the above board/commissions must be residents of the City of Lynwood. The responsibilities and qualifications of each board/commission listed above are further set forth in the Lynwood Municipal Code. ~~.w,:. AGENDA STAFF REPORT DATE: June 2, 2009 TO: Honorable Mayor and Members of the City Council APPROVED BY: Roger L. Haley, City Manag PREPARED BY: Perry Brents, Director of Recreation and Community Services P~ SUBJECT: July 4tn Celebration Recommendation: Staff recommends that the City Council provide any input to staff relative to the contents of the 2009 July 4m Program and then: Approve the acquisition of a vendor to provide the pyrotechnic display using the informal bid process via the adoption of the attached resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD AUTHORIZING THE SOLICITATION OF VENDORS TO ACQUIRE A PYROTECHNICIAN TO PROVIDE A FIREWORKS DISPLAY FOR THE 4m OF JULY CELEBRATION THROUGH THE INFORMAL BID PROCESS". Authorize the expenditure of funds during the 2008-2009 fiscal year from the 2009-2010 fiscal budget in order to facilitate purchases that must be completed in advance of the 4~" of July event via the adoption of the attached resolution entitled; "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD AUTHORIZING THE EXPENDITURE OF FUNDS FROM THE 2009-2010 FISCAL BUDGET DURING THE 2008-2009 FISCAL PERIOD". Background: The City of Lynwood annually conducts an event to commemorate the July 4m Holiday inside Lynwood City Park. Key components of the event include a fireworks display, entertainment, a carnival, and vendor's booths. Staff is seeking City Council approval for the 2009 4~" of July celebration and asking City Council to approve the expenditure of 2009-2010 funds during fiscal year 2008-2009 to accommodate purchases for the celebration that must occur in advance of the event. fFEM ~%~ Discussion & Analysis: In consideration of budget constraints, staff has reduced the 2009 July 4th Celebration budget by 10%. This is done by having parts of the program begin later in the day and not having to incur certain rental costs and staff overtime hours. The event will be able to continue highlighting food and novelty booths, entertainment, a fireworks display, and a professional carnival in the event that one can be located. Food and novelty booths will be rented to vendors at a rate on par with capturing or exceeding the City's staff cost for set-up and break down of canopies. Logistical services are provided independent of the pyrotechnic display and are secured through various contractors. Logistical services for this event typically include the rental of a sound system, backline materials, generators, electrical accessories, utensil sinks, port-a-pots, and barricades. Entertainment is secured through talent agencies and/or direct contact with performers. The set-up and break down of the City stage is done in- house. Fiscal Impact: The 2008 operating budget for July 4th was $57,000. The cost to operate the 2009 4th of July celebration with a budget reduction of 10% is estimated at $51,300. Expected Exaenditures Entertainment $ 17,000.00 Rental equipment $ 4,000.00 Pyro spectacular $ 12,000.00 L.A. County Sheriff $ 9,000.00 (approximately) Decorations $ 600.00 Stage set-up $ 1,000.00 Security (10 officers) $ 2,200.00 Sound $ 5,500.00 Coordinated With: City Attorney Finance Department LA County Sheriff LA County Fire Department 2 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD AUTHORIZING THE SOLICITATION OF VENDORS TO ACQUIRE A PYROTECHNICIAN TO PROVIDE A FIREWORKS DISPLAY FOR THE 4t" OF JULY CELEBRATION THROUGH THE INFORMAL BID PROCESS WHEREAS, the City of Lynwood desires to present a program which offers a July 4th Fireworks Celebration; and WHEREAS, the acquisition of these services would be more economically and efficiently effective through the use of the informal bid process; and WHEREAS, the City Council by a 4/5 vote can approve funding through an alternate bid procedure. NOW, THEREFORE, THE CITY OF LYNWOOD DOES HEREBY FIND, ORDER, AND RESOLVE AS FOLLOWS: Section 1. The City Council waives the formal bid procedure for the acquisition of a Pyrotechnic vendor for the provision of the 2009 fireworks display for July 4th. Section 2. This resolution becomes effective immediately upon its adoption. PASSED, APPROVED and ADOPTED THIS 2nd day of June 2009. Maria T. Santillan, Mayor ATTEST: Maria Quinones, City Clerk APPROVED AS TO FORM: Fred Galante, City Attorney APPROVED AS TO CONTENT: Roger L. Haley, City Manager Perry Brents, Director Recreation & Community Services 3 STATE OF CALIFORNIA } } COUNTY OF LOS ANGELES } I, the undersigned City Clerk of the City of Lynwood, do hereby certify that the above and foregoing Resolution was duly adopted by the City Council of the City of Lynwood at a regular meeting held at City Hall on the 2nd day of June 2009, and passed by the following votes: AYES: NOES: ABSENT: ABSTAIN: Maria Quinonez, City Clerk STATE OF CALIFORNIA } } COUNTY OF LOS ANGELES } I, the undersigned City Clerk of the City of Lynwood, and Clerk of the City Council of said City, do hereby certify that the above and foregoing is a full, true and correct copy of Resolution No. on file in my office and that said Resolution was adopted on the date and by the vote therein stated. Dated this 2nd day of June, 2009 Maria Quinonez, City Clerk 4 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD AUTHORIZING THE EXPENDITURE OF FUNDS FROM THE 2009-2010 FISCAL BUDGET DURING THE 2008-2009 FISCAL PERIOD WHEREAS, the City of Lynwood desires to present a program which offers, entertainment, a professional carnival, vendor's booths, and a July 4th fireworks display; and WHEREAS, the acquisition of these services would come prior to the date of the 2009/2010 budget approval; and WHEREAS, the City Council can approve the expenditure of funds from the 2009/2010 fiscal budget in advance. NOW, THEREFORE, THE CITY OF LYWOOD DOES HEREBY FIND, ORDER AND RESOLVE AS FOLLOWS: Section 1. The City Council approves the expenditure of funds from the 2009/2010 fiscal budget during the 2008/2009 calendar year for the acquisition of a Pyrotechnic vendor, entertainment, and related logistical services, in an amount not to exceed $51,300 for the provision of the 2009 July 4~h Celebration. Section 2. This resolution becomes effective immediately upon its adoption. PASSED, APPROVED and ADOPTED THIS 2nd day of June 2009. Maria T. Santillan, Mayor City of Lynwood ATTEST: Maria 4uinones, City Clerk APPROVED AS TO FORM: Fred Galante, City Attorney APPROVED AS TO CONTENT: Roger L. Haley, City Manager Perry Brents, Director Director of Recreation & Community 5 STATE OF CALIFORNIA } } COUNTY OF LOS ANGELES } I, the undersigned City Clerk of the City of Lynwood, do hereby certify that the above and foregoing Resolution was duly adopted by the City Council of the City of Lynwood at a regular meeting held at City Hall on the 2nd day of June 2009, and passed by the following votes: AYES: NOES: ABSENT: ABSTAIN: STATE OF CALIFORNIA } } COUNTY OF LOS ANGELES } Maria Quinonez, City Clerk 1, the undersigned City Clerk of the City of Lynwood, and Clerk of the City Council of said City, do hereby certify that the above and foregoing is a full, true and correct copy of Resolution No. on file in my office and that said Resolution was adopted on the date and by the vote therein stated. Dated this 2nd day of June, 2009 Quinonez, City Clerk 6