AGENDA
REGULAR MEETING
OF THE ADELANTO CITY COUNCIL,
ADELANTO PUBLIC FINANCING AUTHORITY,
ADELANTO PUBLIC UTILITY AUTHORITY,
ADELANTO COMMUNITY BENEFIT CORPORATION,
AND THE SUCCESSOR AGENCY BOARD
June 24, 2026
City Council
Gabriel Reyes, Mayor
Daniel Ramos, Mayor Pro Tem
Stevevonna Evans, Councilor
Angelo Meza, Councilor
Amanda Uptergrove, Councilor
City Manager
Jessie Flores
City Attorney
Todd Litfin
Meetings held:
2 nd & 4th Wednesday
Adelanto Stadium
Conference Room
12000 Stadium Way,
Adelanto CA, 92301
Open Session: 11:00 a.m.
NOTE: PLEASE TURN CELL PHONES OFF OR PLACE THEM ON VIBRATE DURING THE CITY COUNCIL MEETING AS A COURTESY TO OTHERS. Thank you, Administrative Staff The City Council Agenda packet may be reviewed by the public at the reception counter in City Hall. Any writings or documents pertaining to an open session item, provided to a majority of the City Council within 72 hours of a regular meeting, shall be made available for public inspection at the reception counter in City Hall at 11600 Air Expressway, Adelanto, CA 92301, during normal business hours. Members of the public can view the agenda or download any staff reports in advance by accessing the City website at www.ci.adelanto.ca.us on Thursday the week before the scheduled meeting.
The public may view the meeting or participate / comment remotely as follows:
• All of our meetings are streamed live at https://watch.adelantoca.gov and are also available for playback after the meeting.
• Participate via zoom please log in using any of the options below:
• Teleconference: https://meet.adelantoca.gov
Or Telephone:
1-669-900-6833
Webinar ID: 931 4644 4676
Passcode: 7601
Submit written comments:
We encourage submittal of written comments supporting, opposing, or otherwise commenting on an agenda item, for distribution to the City Council prior to the meeting. Send emails to [email protected]; written correspondence may be sent to Brenda Lopez, 11600 Air Expressway Adelanto CA 92301.
1 REGULAR MEETING
June 24, 2026
11600 Air Expressway • Adelanto, CA 92301 • (760) 246-2300 • www.ci.adelanto.ca.us Rules of Decorum
“Members of the Public are advised that all PAGERS, CELLULAR TELEPHONES and any OTHER COMMUNICATION DEVICES are to be turned off upon entering the City Council Chambers.” If you need to have a discussion with someone in the audience, kindly step out into the lobby. Under the Government Code, the City Council may regulate disruptive behavior that impedes the City Council Meeting.
Disruptive conduct may include, but is not limited to:
• Screaming or yelling during another audience member’s public comments period; • Profane language directed at individuals in the meeting room; • Throwing objects at other individuals in the meeting room; • Physical or verbal altercations with other individuals in the meeting room; and • Going beyond the allotted three-minute public comment period granted.
When a person’s or group’s conduct disrupts the meeting, the Mayor or presiding officer will request that the person or group stop the disruptive behavior, and WARN the person or group that they will be asked to leave the meeting room if the behavior continues.
If the person or group refuses to stop the disruptive behavior, the Mayor or presiding officer may order the person or group to leave the meeting room, and may request that those persons be escorted from the meeting room. Any person who, without authority of law, willfully disturbs or breaks up a City Council meeting is guilty of a misdemeanor. (Pen. Code, § 403.) It should also be noted that any person who WILLFULLY disturbs or breaks up the City Council meeting may be arrested for a misdemeanor offense. (Penal Code, § 403.)
MEMBERS OF THE PUBLIC WISHING TO ADDRESS THE CITY COUNCIL MEMBERS
ARE REQUIRED TO FILL OUT A SPEAKER REQUEST FORM AND PLACE IT IN THE TRAY ON THE PODIUM PRIOR TO MEETING. Thank you, Administrative Staff The City Council packet may be reviewed by the public at the reception counter in City Hall. Any writings or documents pertaining to an open session item, provided to a majority of the City Council Members within seventy-two (72) hours of a Regular Meeting and twenty-four (24) hours of a Special Meeting. Members of the public can view the agenda or download any staff reports in advance by accessing the City’s website at www.ci.adelanto.ca.us on the Thursday of the week before the scheduled meeting.
AMERICANS WITH DISABILITIES ACT: In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk at (760) 246-2300, ext. 11123, no later than seventy-two (72) hours prior to the meeting per 28 CFR
34.102.104.
2 REGULAR MEETING
June 24, 2026
11600 Air Expressway • Adelanto, CA 92301 • (760) 246-2300 • www.ci.adelanto.ca.us TIME: _____________
ROLL CALL: Councilor Evans ________
Councilor Meza ________
Councilor Uptergrove ________
Mayor Pro Tem Ramos ________
Mayor Reyes ________
INVOCATION:
FLAG SALUTE: ______________________
1. City Manager to announce if there is any addition/removal of items from the agenda.
C. APPROVAL OF AGENDA
M__________________S__________________ACTION___________ D. CITY MANAGERS ANNOUNCEMENTS AND REPORT
E. CITY COUNCIL ANNOUNCEMENTS AND REPORTS
F. PRESENTATIONS
1. Certificate Presentation to Nancie Goff with Victor Valley Transit Authority on her Retirement.
A. CALL TO ORDER—REGULAR MEETING
B. DELETIONS/ADDITIONS TO AGENDA
3 REGULAR MEETING
June 24, 2026
11600 Air Expressway • Adelanto, CA 92301 • (760) 246-2300 • www.ci.adelanto.ca.us G. PUBLIC COMMUNICATIONS
PUBLIC COMMENT: OPEN: CLOSED:
This is the time and place for members of the public to comment on any matter within the jurisdiction of the City Council. Members of the public wishing to address the City Council Members on items not on the agenda can push *9 on their telephones to raise their hands. The City Clerk will call on you in the order received. You will be asked to un-mute - to do so you must push *6. Please state your name for the record. There is a time limit of three (3) minutes.
Members of the audience may address the City Council on non-agenda items; however, in accordance with Government Code section 54954.2, the City Council may not act on an item not appearing on the agenda
H. CONSENT CALENDAR
Items on the Consent Calendar are considered routine in nature and non-controversial and require no further discussion by the City Council. They may be acted on in one motion unless a member of the City Council requests a separate discussion on an item.
MOTION APPROVING THE CONSENT CALENDAR AS PRESENTED
1. Waiver of Full Reading of Ordinances. Proposed action to waive full reading (except title) of all ordinances appearing on this City Council agenda as authorized by Government Code Section 36934, unless otherwise directed by the City Council.
2. Receive and file the Business License Department Report-May 2026.
3. Receive and file the Cannabis Compliance Report- April and May 2026.
4. Approval of Construction Agreement with Sully-Miller for the Air Expressway Rehabilitation Project in the amount of $1,895,875.00.
5. Amendment No. 1 to Professional Services Agreement with BRN LLC for Water, Sewer, and Energy related Consulting Services in the amount of $96,000.
6. Approval of Third-Party Claims Administration Agreement between the City of Adelanto and Carl Warren & Company, LLC.
7. Adoption of Resolution No. 26-35 supporting the Retention of Opportunity Zone Designation for select census tracts within the City of Adelanto.
RESOLUTION NO. 26-35
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ADELANTO,
CALIFORNIA, SUPPORTING THE RETENTION OF OPPORTUNITY ZONE DESIGNATION FOR CENSUS TRACTS 06071009134, 06071009131, 06071009132, AND 06071009125
4 REGULAR MEETING
June 24, 2026
11600 Air Expressway • Adelanto, CA 92301 • (760) 246-2300 • www.ci.adelanto.ca.us
8. Consideration of Resolution 26-36 approving adoption of continuing Resolution in lieu of timely FY 2026-2027 Budget Adoption and Authorization of 30 days extension to prepare and present the fiscal year 2026-2027 Budget.
RESOLUTION 26-36
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ADELANTO
CONTINUING EXPENDITURES AND REVENUES IN ACCORDANCE WITH THE FISCAL YEAR 2025-2026 CITY BUDGET IN LIEU OF FISCAL YEAR 2026-2027
BUDGET ADOPTION
9. Approval of Warrant Demand Schedule 25/26-12-02
a. City of Adelanto Check Warrant No. 151922 through 151957 in the total amount of $ 2,189,976.85.
b. City of Adelanto EFT No. 5547 through 5613 in the amount of $ 2,980,373.69.
M__________________ S__________________ ACTION______________ I. ADELANTO PUBLIC UTILITY AUTHORITY CONSENT CALENDAR
1. Approval of Resolution 26-03 Adoption of continuing Resolution in lieu of timely APUA FY 2026- 2027 Budget for Adoption and Authorization of 30 days extension to prepare and present the fiscal year 2026-2027 Budget.
RESOLUTION 26-03
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ADELANTO PUBLIC
UTILITY AUTHORITY (APUA) CONTINUING EXPENSES AND REVENUES IN ACCORDANCE WITH THE FISCAL YEAR 2025-2026 APUA BUDGET IN LIEU OF FISCAL YEAR 2026-2027 BUDGET ADOPTION
2. Approval of an Agreement with Layne Christensen for the Water Treatment Facility Filter Media Replacement in the amount of $1,029,094.00.
5 REGULAR MEETING
June 24, 2026
11600 Air Expressway • Adelanto, CA 92301 • (760) 246-2300 • www.ci.adelanto.ca.us J. ADELANTO PUBLIC UTILITY AUTHORITY PUBLIC HEARING
OPEN __________________ CLOSED_____________________
1. OPEN A PUBLIC HEARING AND ADOPT RESOLUTION APUA 26-02 PROVIDING FOR THE
COLLECTION OF WATER AND SEWER STANDBY FEES BY THE COUNTY TAX COLLECTOR
AT THE SAME TIME AS AND TOGETHER WITH THE GENERAL TAXES OF THE CITY FOR FISCAL YEAR 2026/2027. (TODD)
RECOMMENDATION: Open a Public Hearing and adopt Resolution No. APUA 26-02 approving the report and placing Water and Sewer Standby Fees on the tax roll for collection by the County for Fiscal Year 2026/2027.
RESOLUTION NO. APUA 26-02
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ADELANTO, CALIFORNIA, PROVIDING FOR THE COLLECTION
OF WATER AND SEWER STANDBY FEES BY THE COUNTY TAX
COLLECTOR AT THE SAME TIME AS AND TOGETHER WITH THE
GENERAL TAXES OF THE CITY.
M__________________S__________________ACTION__________________ K. PUBLIC HEARING
OPEN __________________ CLOSED_____________________
1. OPEN A PUBLIC HEARING AND APPROVE RESOLUTIONS 26-25 AND 26-26 RELATED
TO THE LEVY AND COLLECTIONS OF ASSESSMENTS FOR THE ADELANTO LANDSCAPE MAINTENANCE ASSESSMENT NO. 1 FOR FISCAL YEAR 2026/2027(FY2026- 2027). (DIANA/WILLDAN)
RECOMMENDATION: Open a Public Hearing and Approve Resolutions 26-25 and 26-26 as presented related to the Levy and Collections of Assessments for the Adelanto Landscape Maintenance Assessment District No. 1 for Fiscal Year 2026/2027(FY2026-2027).
RESOLUTION NO. 26-25
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ADELANTO, CALIFORNIA, ORDERING THE LEVY AND
COLLECTION OF ASSESSMENTS RELATED TO THE CITY OF
ADELANTO LANDSCAPE MAINTENANCE ASSESSMENT
DISTRICT NO. 01, FOR FISCAL YEAR 2026/2027.
6 REGULAR MEETING
June 24, 2026
11600 Air Expressway • Adelanto, CA 92301 • (760) 246-2300 • www.ci.adelanto.ca.us RESOLUTION NO. 26-26
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ADELANTO, CALIFORNIA, APPROVING THE ENGINEER’S
REPORT FOR THE CITY OF ADELANTO LANDSCAPE
MAINTENANCE ASSESSMENT DISTRICT NO. 01, FOR FISCAL
YEAR 2026/2027.
M__________________S__________________ACTION__________________ OPEN __________________ CLOSED_____________________
2. OPEN A PUBLIC HEARING AND APPROVE RESOLUTIONS 26-27 AND 26-28 RELATED
TO THE LEVY AND COLLECTIONS OF ASSESSMENTS FOR THE ADELANTO STREETLIGHT MAINTENANCE ASSESSMENT DISTRICT NO. 1 FOR FISCAL YEAR 2026/2027(FY2026-2027). (DIANA/WILLDAN)
RESOLUTION NO. 26-27
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ADELANTO, CALIFORNIA, APPROVING THE ENGINEER’S
REPORT FOR THE CITY OF ADELANTO STREETLIGHT
MAINTENANCE ASSESSMENT DISTRICT NO. 01, FOR FISCAL
YEAR 2026/2027.
RESOLUTION NO. 26-28
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ADELANTO, CALIFORNIA, ORDERING THE LEVY AND
COLLECTION OF ASSESSMENTS RELATED TO THE CITY OF
ADELANTO STREETLIGHT MAINTENANCE ASSESSMENT
DISTRICT NO. 01, FOR FISCAL YEAR 2026/2027.
RECOMMENDATION: Open a Public Hearing and approve Resolutions 26-27 and 26-28 as presented related to the levy and collections of assessments for the Adelanto Streetlight Maintenance Assessment District No. 1 for Fiscal Year 2026/2027(FY2026-2027).
M__________________S__________________ACTION__________________ OPEN __________________ CLOSED_____________________
3. OPEN A PUBLIC HEARING AND APPROVE RESOLUTIONS 26-29 AND 26-30 RELATED
TO THE LEVY AND COLLECTIONS OF ASSESSMENTS FOR THE ADELANTO DRAINAGE BENEFIT ASSESSMENT DISTRICT 2025-1 FOR FISCAL YEAR 2026/2027(FY2026/2027). (DIANA/WILLDAN)
7 REGULAR MEETING
June 24, 2026
11600 Air Expressway • Adelanto, CA 92301 • (760) 246-2300 • www.ci.adelanto.ca.us RECOMMENDATION: Open a Public Hearing and approve Resolutions 26-29 and 26-30 as presented related to the levy and collections of assessments for the Adelanto Drainage Benefit Assessment District 2025-1 for Fiscal Year 2026/2027.
RESOLUTION NO. 26-29
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ADELANTO, CALIFORNIA, APPROVING THE ENGINEER’S
REPORT FOR THE CITY OF ADELANTO DRAINAGE BENEFIT
ASSESSMENT DISTRICT 2025-1, FOR FISCAL YEAR 2026/2027.
RESOLUTION NO. 29-30
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ADELANTO, CALIFORNIA, ORDERING THE LEVY AND
COLLECTION OF ASSESSMENTS RELATED TO THE CITY OF
ADELANTO DRAINAGE BENEFIT ASSESSMENT DISTRICT 2025-1,
FOR FISCAL YEAR 2026/2027.
M__________________S__________________ACTION__________________ L. NEW BUSINESS
OPEN __________________ CLOSED_____________________
1. APPROVE RESOLUTION 26-31 OF THE CITY OF ADELANTO, COUNTY OF SAN
BERNARDINO, STATE OF CALIFORNIA, RATIFYING THE SAN BERNARDINO COUNTY FIRE PROTECTION DISTRICT’S ORDINANCE NO. FPD 26-02. (GARY) 1) RECOMMENDATION: Staff recommends the City Council Approve and adopt Resolution 26-31 ratifying the San Bernardino County Fire Protection District’s Ordinance No. FPD 26-
02. 2) Instruct the City Building Official to: (a) transmit, within fifteen (15) days of the Council’s ratification, a certified copy of the resolution to the San Bernardino County Fire Protection District (SBCFPD), and (b) file a copy of the resolution, along with the SBCFPD’s ratified Ordinance No. FPD 26-02, to the California Department of Housing and Community Development, so that the SBCFPD Ordinance No. FPD 26-02 will have full legal effect within the jurisdictional boundaries of the City of Adelanto.
M__________________S__________________ACTION__________________ 8 REGULAR MEETING
June 24, 2026
11600 Air Expressway • Adelanto, CA 92301 • (760) 246-2300 • www.ci.adelanto.ca.us OPEN __________________ CLOSED_____________________
2. FIREWORKS REPORT OF ORGANIZATIONS POTENTIALLY ELEIGBLE FOR A FIREWORK STAND. (CHRISTIAN)
RECOMMENDATION: Request that the City Council approve and determine eligibility for organizations potentially eligible for a fireworks stand.
M__________________S__________________ACTION__________________ OPEN __________________ CLOSED_____________________
3. ADOPT RESOLUTION 26-32 APPROVING THE THIRD AMENDMENT TO THE SOLID
WASTE FRANCHISE AGREEMENT WITH AVCO TO PROVIDE ENHANCED SERVICES TO
LESSEN THE IMPACT OF ILLEGAL DUMPING AND DISPOSING OF WASTE IN UNAUTHORIZED LOCATIONS WITHIN THE COMMUNITY. (DIANA/BURRTEC) RECOMMENDATION: It is recommended that the City Council adopt Resolution 26-32 approving the Third Amendment to the Franchise for Solid Waste Handling Services with AVCO Disposal, Inc.
RESOLUTION NO. 26-32
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ADELANTO,
APPROVING THE THIRD AMENDMENT TO AGREEMENT BETWEEN CITY OF ADELANTO AND AVCO DISPOSAL, INC. FOR SOLID WASTE HANDLING SERVICES.
M__________________S__________________ACTION__________________ OPEN __________________ CLOSED_____________________
4. OPEN A PUBLIC HEARING AND ADOPT RESOLUTION 26-33 ORDERING THE LEVY
AND COLLECTION OF RESIDENTIAL SOLID WASTE CHARGES ON THE PROPERTY TAX ROLL FOR FISCAL YEAR 2026-27. (DIANA/BURRTEC)
RECOMMENDATION: It is recommended that the City Council open a public hearing and adopt Resolution 26-33 ordering the levy and collection of residential solid waste charges on the property tax roll for Fiscal Year 2026-2027.
9 REGULAR MEETING
June 24, 2026
11600 Air Expressway • Adelanto, CA 92301 • (760) 246-2300 • www.ci.adelanto.ca.us RESOLUTION NO. 26-33
A RESOLUTION OF THE ADELANTO CITY COUNCIL, ORDERING THE
LEVY AND COLLECTION OF SOLID WASTE FEES BY THE COUNTY
TAX COLLECTOR IN THE SAME MANNER AND AT THE SAME TIME AS GENERAL TAXES.
M__________________S__________________ACTION__________________ OPEN __________________ CLOSED_____________________
5. APPROVE RESOLUTION 26-34 ORDERING THE LEVY AND COLLECTION OF ANNUAL CFD 2006-2 SPECIAL TAXES FOR FISCAL YEAR 2026-2027. (DIANA/WILLDAN) RECOMMENDATION: Approve Resolution No. 26-34 ordering the levy and collection of annual CFD 2006-2 special taxes for Fiscal Year 2026-2027 (FY26/27).
RESOLUTION NO. 26-34
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ADELANTO, CALIFORNIA, ORDERING THE LEVY AND
COLLECTION OF ANNUAL SPECIAL TAXES RELATED TO THE
CITY OF ADELANTO COMMUNITY FACILITIES DISTRICT (CFD)
2006-2 (IMPROVEMENT AREA NO. 1 AND IMPROVEMENT AREA
NO. 2) (MANZANITA AND ESPINOZA) FOR FISCAL YEAR
2026/2027.
M__________________S__________________ACTION__________________ M. ITEMS REMOVED FROM THE CONSENT CALENDAR
N. FUTURE AGENDA ITEMS
City Councilmembers may request to receive a report, schedule a study session, or to place an item on a future City Council agenda regarding matters within the jurisdiction of the City Council. Requests require a motion, a second, and a majority vote of the City Council. Individual requests should be voted on separately. The City Manager shall work with City staff to respond to inquiries and requests as soon as practicable in an appropriate manner. 10 REGULAR MEETING
June 24, 2026
11600 Air Expressway • Adelanto, CA 92301 • (760) 246-2300 • www.ci.adelanto.ca.us O. ADJOURNMENT
The next Regular Meeting of the City Council will be held on July 8, 2026, at 11:00 a.m. at Adelanto Stadium 12000 Stadium Way, Adelanto CA, 92301.
TIME OUT: ______________
M__________________S__________________ACTION____________________
I, BRENDA LOPEZ, CITY CLERK OF THE CITY OF ADELANTO, OR MY DESIGNEE,
HEREBY CERTIFY THAT A TRUE, ACCURATE COPY OF THE FOREGOING AGENDA WAS POSTED ON JULY 1, 2026, SEVENTY-TWO (72) HOURS PRIOR TO THE MEETING PER GOVERNMENT CODE 54954.2 IN THE GOVERNMENTAL CENTER’S DISPLAY CASE, 11600 AIR EXPRESSWAY, IN ADELANTO, CALIFORNIA.
Brenda Lopez, City Clerk, CMC
P. DECLARATION OF POSTING
11 REGULAR MEETING
June 24, 2026
11600 Air Expressway • Adelanto, CA 92301 • (760) 246-2300 • www.ci.adelanto.ca.us
YOUR CITY GOVERNMENT
CHARTER CITY: Ratified by the electors of the City at an election on November 3, 1992. “A Charter City can do what the Charter permits it to do, so long as there is not direct violation of the State Constitution.”
CITY COUNCIL: The City Council is the legislative and policy-making body of the City. The City Council is composed of one elected Mayor and four Council Members, elected at large (to represent the entire City), to serve four (4) year, staggered terms.
CITY MANAGER: The City Manager is the chief executive officer responsible for the day-to-day administration of City affairs.
CITY COUNCIL MEETING: The regular meeting of your City Council is a vital part of the democratic process in the conduct of the City’s affairs. These meetings are open to the public and conducted by your elected representatives who are responsible, as a body, for the operation of Adelanto’s City government. The City Council appreciates your interest and urges citizen participation in government matters.
LEGISLATIVE TERMS
ORDINANCES: Ordinances are the means by which the City enacts its local laws. Unless an urgent situation exists, ordinances will first be presented at a City Council meeting as a “first reading.” At a subsequent City Council meeting, there will be a “second reading” and vote for or against adoption. Ordinances go into effect after a waiting period of thirty (30) days, in most cases, during which time the summary of the ordinance is published in a local newspaper approved for this purpose.
RESOLUTIONS: Resolutions and minute orders are the means by which the City Council formally adopts policies and/or approves specific actions. These go into effect upon adoption 12 Adelanto City Hall ~ 11600 Air Expressway, Adelanto, CA 92301 ~ (760) 246-2300 ~ Fax (442) 249-1121
REGULAR MEETING
OF THE ADELANTO CITY COUNCIL
ADELANTO PUBLIC FINANCING AUTHORITY,
ADELANTO PUBLIC UTILITY AUTHORITY,
ADELANTO COMMUNITY BENEFIT CORPORATION,
AND THE SUCCESSOR AGENCY BOARD
JUNE 24, 2026
All of our meetings are streamed live at https://watch.adelantoca.gov and are also available for playback after the meeting.
Participate via zoom please log in using any of the options below:
Teleconference https://meet.adelantoca.gov
TIME TELECONFERENCE
Location:
Conference Room
12000 Stadium Way
Adelanto CA, 92301 To Participate and and Call in for public comments:
Please call 1-669-900-6833 along with
conference code 931 4644 4676 Passcode: 7601
Open Session – 11:00 a.m.
Dated: June 17, 2026 Brenda Lopez, City Clerk, CMC
13 CITY COUNCIL
AGENDA REPORT
1 | P a g e
STAFF RECOMMENDATION:
Staff recommend that the City Council accept the monthly Business License Division report for the period ending May 2026.
BACKGROUND:
The New Business Activity Listing exhibits all the new business licenses processed during the month.
The report includes new applicants and businesses that renewed their annual license with the City.
Anyone doing business within the City must obtain a business license.
The Cash Receipt Listing exhibit lists all money the Business License Division received for issuing new business licenses, business license renewals, or a temporary business license.
FISCAL IMPACT:
A total of $212,783 was processed and issued in May 2026.
ATTACHMENTS:
1. Monthly New Business Activity Listing for May 2026.
2. Monthly Cash Receipt List for May 2026.
DATE: June 10, 2026
TO: Honorable Mayor and City Council Members
FROM: Jessie Flores, City Manager
BY: HdL Companies / Via: Brenda Lopez, City Clerk
SUBJECT: BUSINESS LICENSE REPORT – MAY 2026
14 CITY COUNCIL
AGENDA REPORT
2 | P a g e
MAY SUMMARY:
39%
9%
19%
32% 1%
Contractors (33) General Service (8) General Retail (16) Rental Property (27) Professional (1) 0 50
100
150
200
250
300
350
Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
2022 2023 2024 2025 2026
Business License Accounts Processed by Rate Category
(Total Record Count = 85)
56%
44%
Based Outside the City = 48 Based Inside the City = 37
TOTAL NUMBER OF ACCOUNTS PROCESSED BUSINESS LICENSES ISSUED BY LOCATION 15 Monthly Business Activity Listing
Firm Name Firm Address Business Description Located Inside Adelanto License Type Issue Date Amount 14755 JESSICA WAY 14755 JESSICA WAY 3: Group 3: Rental Properties Yes New Application 2026-05-11 $49.00 1LIFE TRAUMA KITS 15828 MARGARITA DR 1: Group 1: General/Retail No New Application 2026-05-14 $29.00 818 LIVE SCANNER 11089 CONTINENTAL CT 4: Group 4: Services Yes Renewal 2026-05-16 $29.00 A J & E 2942 BANGOR AVE 4: Group 4: Services No Reinstated 2026-05-14 $29.00 ADELANTO AIR EXPRESSWAY INC 12011 AIR EXPY 1: Group 1: General/Retail Yes Renewal 2026-05-08 $53.70 ADELANTO RV PARK 11301 AIR EXPY 3: Group 3: Rental Properties Yes Renewal 2026-05-26 $2,471.84 ADVANTAGE DIRECTIONAL DRILLING INC 13315 HOMESTEAD DR 5: Group 5: Contractors No New Application 2026-05-15 $29.00 AIR EXPY SMOKE SHOP 12002 AIR EXPY 1: Group 1: General/Retail Yes New Application 2026-05-01 $407.25 ALL CITY MANAGEMENT SERVICES INC 11643 TELEGRAPH RD 4: Group 4: Services No Renewal 2026-05-08 $554.75 ALLOY ARMOR 6018 SAGUARO ST 1: Group 1: General/Retail No New Application 2026-05-14 $137.75 ANDY GUMP, INC. 26954 RUETHER AVE 5: Group 5: Contractors No Renewal 2026-05-04 $142.30 ANTIGUA PLASTERING INC 530 S LAKE AVE #571 5: Group 5: Contractors No First Renewal 2026-05-17 $204.00 ASURION APPLIANCE REPAIR, LLC 140 11TH AVE N 1: Group 1: General/Retail No Renewal 2026-05-02 $29.00 ATI RESTORATION, LLC 1175 HALL AVE 5: Group 5: Contractors No Renewal 2026-05-13 $29.00 B & C APPLICANCE 12161 BARKER RD 4: Group 4: Services No Renewal 2026-05-10 $29.00 BALDOMERO RODRIGUEZ 15090 KINGSFORD AVE 3: Group 3: Rental Properties Yes Renewal 2026-05-02 $29.00 BONG SOOK SHIN 14446 SIERRA GRANDE ST 3: Group 3: Rental Properties Yes Renewal 2026-05-02 $29.00 CATT PLUMBING, INC. 231 E ALESSANDRO BLVD A422 5: Group 5: Contractors No Reinstated 2026-05-15 $169.00 CHAPAROSA ROOFING INC 13581 JOHN GLENN RD STE A 5: Group 5: Contractors No Renewal 2026-05-13 $139.08 CLEMSON RENTAL 14469 CLEMSON CT 3: Group 3: Rental Properties Yes Renewal 2026-05-17 $29.00 CMZ EXCAVATION, INC. 715 W OAK AVE 5: Group 5: Contractors No First Renewal 2026-05-03 $437.10 CSI ELECTRICAL CONTRACTORS 10623 FULTON WELLS AVE 5: Group 5: Contractors No Renewal 2026-05-19 $70,628.31 DESERT MEDIA 11103 BOS PL 1: Group 1: General/Retail No New Application 2026-05-11 $29.00 DESERT VIEW 10450 RANCHO RD 4: Group 4: Services Yes Renewal 2026-05-24 $124,718.24 DIAMOND CONSTRUCTION 19040 MATHER AVE 5: Group 5: Contractors No New Application 2026-05-06 $46.50 DIRT ZOMBIE LLC 10079 VALLE VISTA RD 1: Group 1: General/Retail No New Application 2026-05-04 $29.00 DYNAMIC PATIO COVERS 32960 WILDOMAR RD 5: Group 5: Contractors No New Application 2026-05-20 $46.50 E ROANE CONSTRUCTION 11631 VICTORY BL 104 5: Group 5: Contractors No Renewal 2026-05-03 $29.00 Process Summary:
New Accounts: 28
Renewal Accounts: 50
Reinstated Accounts: 7 Attachment No. 1
Reporting Period: May 2026
Total Licenses Processed: 85
16 Monthly Business Activity Listing
Firm Name Firm Address Business Description Located Inside Adelanto License Type Issue Date Amount EUGENE FRICIONI 15156 IVY CT 3: Group 3: Rental Properties Yes Renewal 2026-05-07 $29.00 EXO ENERGY INC. 1358 LA MIRADA DR 5: Group 5: Contractors No Reinstated 2026-05-06 $116.50 FRESH WOK 14196 US HIGHWAY 395 1: Group 1: General/Retail Yes Renewal 2026-05-30 $2,461.00 GEORGE'S FISH AND SHRIMP TACOS 13955 CUYAMACA RD 1: Group 1: General/Retail No New Application 2026-05-30 $29.00 GES HOLDINGS LLC 14960 PEARMAIN ST 3: Group 3: Rental Properties Yes Renewal 2026-05-02 $75.40 GLAMIS BUMS LLC 4219 ALDERSON AVE 1: Group 1: General/Retail No New Application 2026-05-14 $60.25 HEMINGWAY SHEET METAL, INC. 22525 POPPY RD 5: Group 5: Contractors No New Application 2026-05-21 $830.27 HIGGS INVESTMENTS, LLC 17733 TWISTER COR 3: Group 3: Rental Properties Yes Renewal 2026-05-14 $29.00 ISRAELECTRIC 50726 THREE POINTS RD 5: Group 5: Contractors No New Application 2026-05-18 $29.00 ISSA ALHABASH 15824 MCVAY LN 3: Group 3: Rental Properties Yes Renewal 2026-05-02 $29.00 JADE APARTMENTS 18132-38 POINCIANA RD 3: Group 3: Rental Properties Yes Renewal 2026-05-15 $563.00 JMA PATIO AND CONSTRUCTION INC 23800 BURBANK BLVD 5: Group 5: Contractors No Reinstated 2026-05-22 $29.00 JOAQUIN ALVAREZ 11203 VINTAGE 3: Group 3: Rental Properties Yes Renewal 2026-05-01 $29.00 JOE & IRMA HOME 11552 GREENE CT 3: Group 3: Rental Properties Yes First Renewal 2026-05-02 $29.00 JOHNNY BOYS SEPTIC PUMPING INC 21847 ESAWS RD 5: Group 5: Contractors No First Renewal 2026-05-14 $29.00 JORGE VEGA 14145 PURPLE CANYON RD 3: Group 3: Rental Properties Yes Renewal 2026-05-02 $39.40 KEYSTONE AUTOMOTIVE INDUSTRIES 11200 ALDEN RD 1: Group 1: General/Retail Yes Renewal 2026-05-22 $29.00 KHN RENTALS 10423 CIMMERON TRAIL DR 3: Group 3: Rental Properties Yes Renewal 2026-05-29 $29.00 KING SHOCK TECHNOLOGY 12472 EDISON WAY 1: Group 1: General/Retail No New Application 2026-05-08 $29.00 LUMENEXX 255 PASEO TESORO 5: Group 5: Contractors No New Application 2026-05-13 $29.00 MAMI BUS FAMILY LIVING TRUST 2 14 18 11004 DESERT ROSE DR 3: Group 3: Rental Properties Yes Renewal 2026-05-10 $58.00 MAMI BUS FAMILY LIVING TRUST 2 14 18 14384 PEARMAIN ST 3: Group 3: Rental Properties Yes Renewal 2026-05-10 $36.00 MAMI BUS FAMILY LIVING TRUST 2 14 18 11564 LAGUNA ST 3: Group 3: Rental Properties Yes Renewal 2026-05-10 $36.00 MAMI BUS FAMILY LIVING TRUST 2 14 18 11042 DESERT ROSE DR 3: Group 3: Rental Properties Yes Renewal 2026-05-10 $36.00 MAMI BUS FAMILY LIVING TRUST 2 14 18 14364 PEARMAIN ST 3: Group 3: Rental Properties Yes Renewal 2026-05-10 $36.00 MAMI BUS FAMILY LIVING TRUST 2 14 20 11652 CORNELL ST 3: Group 3: Rental Properties Yes Renewal 2026-05-10 $36.00 MARRIOTT FENCE CONSTRUCTION INC 9459 SANTA FE AVE E 5: Group 5: Contractors No Renewal 2026-05-06 $198.29 MCS HOT DOGS 12000 STADIUM RD 1: Group 1: General/Retail Yes New Application 2026-05-08 $29.00 Process Summary:
New Accounts: 28
Renewal Accounts: 50
Reinstated Accounts: 7 Attachment No. 1
Reporting Period: May 2026
Total Licenses Processed: 85
17 Monthly Business Activity Listing
Firm Name Firm Address Business Description Located Inside Adelanto License Type Issue Date Amount MELVEN J. CASTRO 14692 ALAN ST 3: Group 3: Rental Properties Yes Renewal 2026-05-02 $29.00 MIN SUK HAN 1200 KRUSE DR 5: Group 5: Contractors No Reinstated 2026-05-07 $228.50 NEPTUNE FIRE PROTECTION INC 15375 BARRANCA PKWY STE H-104 5: Group 5: Contractors No New Application 2026-05-01 $204.00 NORTH COUNTY FENCE & FABRICATION 304 N STAGE COACH LN 5: Group 5: Contractors No New Application 2026-05-18 $291.50 OA PROPERTIES 10434 ZINFANDEL DR 3: Group 3: Rental Properties Yes First Renewal 2026-05-24 $9.00 PATRICK KELLY 9669 ASTER RD 5: Group 5: Contractors No New Application 2026-05-20 $286.43 PAVEWEST LLC. 11700 166TH ST 5: Group 5: Contractors No New Application 2026-05-04 $29.00 PEARL'S TAX & BOOKKEEPING 14672 KELLY ST 4: Group 4: Services Yes New Application 2026-05-01 $401.00 PSOMAS 5 HUTTON CENTRE DR #300 2: Group 2: Professional No Renewal 2026-05-26 $112.30 RAMESH C JHAVERI RENTAL 11720 HIGHGROVE CT 3: Group 3: Rental Properties Yes Renewal 2026-05-02 $29.00 SANTA FE ROOFING & RAIN GUTTERS,INC 2244 S SANTA FE AVE #B-1 5: Group 5: Contractors No New Application 2026-05-01 $29.00 SHORT BUS ICE CREAM 15965 ACOMA RD 1: Group 1: General/Retail No New Application 2026-05-04 $29.00 SOUTHLAND MIXER SERVICE, INC. 12231 HIBISCUS RD 4: Group 4: Services Yes Renewal 2026-05-13 $109.00 SPECTRUM PACIFIC WEST 7337 CENTRAL AVE 4: Group 4: Services No First Renewal 2026-05-07 $29.00 STREET TREATS 9743 CALVARY CT 1: Group 1: General/Retail No Reinstated 2026-05-15 $29.00 SUBWAY #39979 14148 HIGHWAY 395 STE #3A 1: Group 1: General/Retail Yes Renewal 2026-05-19 $1,165.28 SUPREME ELECTRIC LLC 455 W LA CADENA DR UNIT 20 5: Group 5: Contractors No New Application 2026-05-21 $29.00 TAZ RENTALS 14603 INDIAN PAINTBRUSH RD 3: Group 3: Rental Properties Yes Renewal 2026-05-02 $29.00 TONEMAN CONCRETE CORPORATION 620 W AVENUE L 5: Group 5: Contractors No New Application 2026-05-26 $3,868.50 UNDERGROUND CONSTRUCTION CO INC 5145 INDUSTRIAL WAY 5: Group 5: Contractors No Renewal 2026-05-23 $29.00 VAN BUREN MAINTENANCE 2615 VAN BUREN PL 5: Group 5: Contractors No New Application 2026-05-18 $29.00 VERIZON WIRELESS 17235 RACCOON AVE 5: Group 5: Contractors No Renewal 2026-05-14 $29.00 VIKING INSULATION 475 N WILLIAMSON BLVD 5: Group 5: Contractors No First Renewal 2026-05-20 $29.00 WALL SET CONSTRUCTION INC 11101 DUNCAN AVE 5: Group 5: Contractors No New Application 2026-05-05 $29.00 WANG SAM S 11362 STAR ST 3: Group 3: Rental Properties Yes First Renewal 2026-05-27 $23.40 WANG SAM S 10618 THORNDALE ST 3: Group 3: Rental Properties Yes First Renewal 2026-05-27 $21.00 WARREN W. MEYER & SONS CONSTRUCTION, INC 18194 CHERRY 5: Group 5: Contractors No Reinstated 2026-05-11 $29.00 WISE CHOICE REMODELING INC 6100 WILSHIRE BLVD STE 560 5: Group 5: Contractors No New Application 2026-05-15 $29.00 ZHANG YANJING 11358 VILLA ST 3: Group 3: Rental Properties Yes First Renewal 2026-05-01 $29.00 Process Summary:
New Accounts: 28
Renewal Accounts: 50
Reinstated Accounts: 7 Attachment No. 1
Reporting Period: May 2026
Total Licenses Processed: 85
18 Totals for New Receipts
Summary by GL Account #
Paid to Client
Building Dept - Home Occupation Zoning Fees $255.00
Business License Tax - G/L #100-0000-43035 $52.47
Interest $3.19
Penalties - G/L #100-0000-43035 $45.34
SB-1186 Fees - City Portion $14.40
SB-1186 Fees - State Portion $1.60
Total: $372.00
Paid to HdL
100-0000-43035 $142,610.51
Building Dept - Home Occupation Zoning Fees $1,059.00
Business License Tax - G/L #100-0000-43035 $334.37
Interest $104.14
Penalties - G/L #100-0000-43035 $648.72
SB-1186 Fees - City Portion $525.60
SB-1186 Fees - State Portion $58.40
Total: $145,340.74
Summary by Payment Type
15 Check 726.75
11 Credit Balance -
101 Credit Card 22,840.59
20 eCheck 183,423.42
1 Paid at City 372.00
1 Payment Transfer 29.00
3 Refund/Reversal (61,679.02)
152 Grand Total: $145,712.74
Summary by Geo Area
152 145,712.74
152 Grand Total $145,712.74
City of Adelanto
Remittance Cash Receipts Summary
Business License Division Cash Receipts Summary
05/01/2026 to 05/31/2026
Attachment 2
19 DATE: June 24, 2026
TO: Honorable Mayor and City Council Member
FROM: Jessie Flores, City Manager
BY: Cannabis Compliance Department
SUBJECT: REPORT ON CANNABIS COMPLIANCE ACTIVITIES FOR April and May 2026 STAFF RECOMMENDATION:
Its is recommended that City Council receive and file the report of activities associated with Cannabis Compliance for April and May 2026
BACKGROUND:
See attached.
FISCAL IMPACT:
In April 2026 the Cannabis department collected $1,147,418.84 in total revenue, $347,205.61 more than same time last year. In May 2026 the Cannabis department collected $634,746.79 in total revenue, $103,691.94 more than same time last year.
$6,975,818.42 has been received for fiscal year July 1, 2025 through May 31, 2026 due to cannabis compliance efforts. These funds represent cannabis excise taxes and cannabis permit renewal fees generated by the cannabis compliance department. Excise Taxes received to date are $5,552,503.74 and permit renewal fees are $1,423,314.68. Year to date collections are $1,689,764.43 more then same time last year.
ATTACHMENTS:
Report on Cannabis Compliance April & May 2026
20 CANNABIS COMPLIANCE
April and May 2026
MONTHLY REVENUE REPORT OF ACTIVITIES
Generated by the Cannabis Compliance Department
in the City of Adelanto, California
21 Cannabis Compliance Department
The City of Adelanto's Cannabis Compliance Department is responsible for overseeing and regulating the thriving cannabis industry within the city.
This department plays a crucial role in ensuring the industry operates within the bounds of local regulations, promoting public safety and responsible business practices.
Oversight of the department is provided by the Finance Manager & Planning Administrator and tasks are executed by the HObsequio LLC team. 22 The Figures
Fiscal Year 2025/2026 YTD
TAX AUDITS
FOR 22/23/24
TAX REVENUE
INCREASED
COMPARED TO
SAME YTD FY 24/25
Outstanding Tax Audits for
22/23/24
145
SINCE OCT. 2025
39.4%
Concluded audits for entities that had ceased operations prior to our review and for which limited records were ≈96 ≈25 available. 23 FINANCIAL OVERVIEW:
TAXES
Revenues for the 3rd quarter of fiscal year 2025/2026 were due on April 30, 2026, for the period of January 2026 through March 2026.
In April, a total of $1,067,048.84 was received for this period, consisting of $981,640.72 in current taxes and $85,408.12 in back tax payments, through properly submitted cannabis excise tax returns and auditor-requested amendments. This represents an increase of $342,975.61 compared to the amount received for the same period last year.
In May, a total of $467,396.79 was received for this period, consisting of $306,220.47 in current taxes and $161,176.32 in back tax payments. This represents an increase of $215,437.40 compared to the amount received for the same period last year.
24 FY 25 FY 26
January February March April May
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
Cannabis Excise Tax January Comparison
FY 24/25 FY 25/26
Jul 1 - May 31
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
FY Comparison Monthly Comparison
25 FINANCIAL OVERVIEW:
PERMIT RENEWALS
$1,392,799.00 has been received for permit renewals for fiscal year July 1, 2025 through May 31, 2026 due to cannabis
compliance efforts. Year to date collections are $114,465.90 more then same time last year. YTD collections have exceeded the full year budget.
26 FY 24/25 FY 25/26
July 1 - May 31
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
Cannabis Excise Permit renewals
FY Comparison
2025 2026
January February March April May
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
Month Comparison
27 CONTACT US ...WITH ANY QUESTIONS REGARDING CANNABIS
COMPLIANCE OR CONTENT OF THIS REPORT.
760-246-2300 ext. 11152
442-249-1152
[email protected]
28 CITY COUNCIL AGENDA REPORT
A D E L A N T O G O V E R N M E N T A L C E N T E R | 1 1 6 0 0 A I R E X P R E S S W A Y | A D E L A N T O , C A L I F O R N I A 9 2 3 0 1
DATE: June 24, 2026
TO: Honorable Mayor and City Council Members
FROM: Jessie Flores, City Manager
BY: Gary Huang, Engineering Services Manager
SUBJECT: Air Expressway Rehabilitation Project
STAFF RECOMMENDATION:
Staff recommend City Council approve the award of the construction contract agreement with Sully-Miller Contracting, Co. in the amount of $1,895,875.00 as the low bidder. This project is for Air Expressway, two miles from HWY 395 to Raccoon Ave. It consists of approximately 436,000 S.F. dig-out and reconstruction of the existing roadway by constructing 2” Rubberized Asphalt over 4” Asphalt base.
BACKGROUND:
The Air Expressway Rehabilitation Project is intended to rehabilitate existing pavement conditions to improve roadway safety and drivability. The project scope includes asphalt concrete grinding and overlay, localized pavement repairs, and associated roadway improvements. Plans and specifications were prepared by KEC Engineers, Inc. in coordination with City Engineering staff.
A Notice Inviting Bids was issued, and sealed bids were publicly opened on June 16, 2026. Ten (10) bids were received and reviewed for responsiveness and compliance with the contract requirements.
SULLY MILLER $ 1,895,875.00
CHRISTENSEN ENGINEERING $ 2,424,910.00
VANCE CORP $ 2,565,770.00
ROMERO $ 2,657,657.00
PAVE-TECH INC $ 2,723,246.25
CALMEX ENGINEERING $ 2,981,251.00
LCR EARTHWORK & ENGINEERING $ 3,089,150.00
ONXY PAVING $ 3,311,550.00
HILLCREST $ 3,402,710.00
HARDY & HARPER $ 4,026,380.00
29 FISCAL IMPACT:
The funds will be paid for by Measure I and gas tax, with no impact on the General Fund.
ATTACHMENTS:
A. Air Expressway Bid Register
B. Air Expressway Rehabilitation Bid Tabulation
C. Bid for the low bidder
D. Contract Service Agreement
30 10
9 8
7 City of Adelanto
Bid Register
I. Name of Project: Air Expressway Rehabilitation Project Bid Opening Date: June 16th Time: 3:00 P.M.
Bid No. Company Schedule A Schedule B Total Cost
1 $
2 $
3 $
4 $
5 $
6 $
$
$
$
$
12 13
14 15
11 Number of Bids Filed by Opening Time: 3:00 p.m. Bids Received By: Title:
Witness:
SULLY MILLER 1,895,875
CHRISTENSEN ENGINEERING
2,424,910 VANCE CORP 2,565,770 ROMERO 2,657,657
PAVE-TECH INC
2,723,246.25
CALMEX ENGINEERING
2,981,251 LCR EARTHWORK & ENGINEERING 3,089,150
ONXY PAVING
3,311,550
HILLCREST
3,402,710
HARDY & HARPER
4,026,380 ENGINEERING TECH
Attachment A
31 BASE BID ITEMS (ITEM 1 THRU 10)
KOALA ROAD PAVING
CIP 2022-02
ITEM NO. BID ITEM DESCRIPTION UNIT APP
QTY UNIT PRICE TOTAL APP QTY UNIT PRICE TOTAL APP QTY UNIT PRICE TOTAL APP QTY UNIT PRICE TOTAL APP QTY UNIT PRICE TOTAL 1 Mobilization/ Demobilization (Not to exceed 5% of total of total contract Price LS 1 $47,000.00 $47,000.00 1 $69,000.00 $69,000.00 1 $39,000.00 $39,000.00 1 $130,000.00 $130,000.00 1 $94,034.00 $94,034.00 2 Provide Traffic Control and Safety LS 1 $30,000.00 $30,000.00 1 $39,400.00 $39,400.00 1 $59,573.00 $59,573.00 1 $108,117.00 $108,117.00 1 $74,243.00 $74,243.00 3 Dig out and dispose of the existing asphalt concrete (AC) and base materials to a depth of 6" within the designated cross-hatched areas shown on the Air Expressway
SF 436,000 $0.40 $174,400.00 436,000 $0.51 $222,360.00 436 $0.61 $265,960.00 436000 $0.49 $283,400.00 436000 $0.50 $218,000.00 4 Place 4" Asphalt Concrete per “Green Book” TON 10,550 $89.00 $938,950.00 10,550 $116.00 $1,223,800.00 10550 $118.00 $1,244,900.00 10550 $125.00 $1,318,750.00 10550 $130.53 $1,377,091.50 5 Construct 2"- Thick Rubberized AC Pavement cap per
Caltrans Standards using MTV per the "Green Book" TON 5,270 $120.00 $632,400.00 5270 $150.00 $790,500.00 5270 $145.00 $764,150.00 5270 $132.00 $695,640.00 5270 $156.30 $823,701.00 6 Adjust Existing Storm Drain/ Sewer/Utility Manhole Frames and Covers to Finished Grade per City of Adelanto latest standards. A 12" wide by 6" thick concrete collar band ( EA 20 $975.00 $19,500.00 20 $1,170.00 $23,400.00 20 $5,807.00 $116,140.00 20 $1,950.00 $39,000.00 20 $795.00 $15,900.00 7 Adjust Existing Water Valve Cans and Covers to Finished Grade. A 12" wide by 6" thick concrete collar band (4,000 psi) must be constructed around each valve cover.
EA 15 $475.00 $7,125.00 15 $110.00 $1,650.00 15 $117.00 $1,755.00 15 $1,650.00 $24,750.00 15 $734.00 $11,010.00 8 Install Traffic Striping, Markings, Curb Painting, and Signs LS 1 $31,000.00 $31,000.00 1 $34,400.00 $34,400.00 1 $38,017.00 $38,017.00 1 $3,100.00 $31,000.00 1 $38,634.25 $38,634.25 9 Install Public Improvement Project Signs EA 2 $1,400.00 $2,800.00 2 $1,700.00 $3,400.00 2 $3,554.00 $7,108.00 2 $1,000.00 $2,000.00 2 $3,114.00 $6,228.00 10 Provide Erosion Control and BMPs LS 1 $5,700.00 $5,700.00 1 $7,600.00 $7,600.00 1 $13,778.00 $13,778.00 1 $5,000.00 $5,000.00 1 $13,034.00 $13,034.00 11 Provide Construction Survey, Staking, Re-establish Survey Monuments and Centerline Ties LS 1 $7,000.00 $7,000.00 2 $9,400.00 $9,400.00 1 $15,389.00 $15,389.00 1 $20,000.00 $20,000.00 1 $51,370.50 $51,370.50 TOTAL BASE BID $1,895,875.00 $2,424,910.00 $2,565,770.00 $2,657,657.00 $2,723,246.25 BASE BID ITEMS (ITEM 1 THRU 10)
KOALA ROAD PAVING
CIP 2022-02
ITEM NO. BID ITEM DESCRIPTION UNIT APP QTY UNIT PRICE TOTAL APP QTY UNIT PRICE TOTAL APP QTY UNIT PRICE TOTAL APP QTY UNIT PRICE TOTAL APP QTY UNIT PRICE TOTAL 1 Mobilization/ Demobilization (Not to exceed 5% of total of total contract Price LS 1 $46,000.00 $46,000.00 1 $145,000.00 $145,000.00 1 $15,000.00 $150,000.00 1 $158,000.00 $158,000.00 1 $80,000.00 $80,000.00 2 Provide Traffic Control and Safety LS 1 $92,209.00 $92,209.00 1 $200,000.00 $200,000.00 1 $325,000.00 $325,000.00 1 $12,000.00 $122,000.00 1 $100,000.00 $100,000.00 3 Dig out and dispose of the existing asphalt concrete (AC) and base materials to a depth of 6" within the designated cross-hatched areas shown on the Air Expressway
SF 436,000 $1.55 $675,800.00 436000 $1.00 $436,000.00 436000 $1.00 $436,000.00 436000 $2.10 $915,600.00 436000 $2.80 $1,220,800.00 4 Place 4" Asphalt Concrete per “Green Book” TON 10,550 $126.00 $1,329,300.00 10550 $130.00 $1,371,500.00 10550 $137.00 $1,445,350.00 10550 $120.00 $1,266,000.00 10550 $158.00 $1,666,900.00 5 Construct 2"- Thick Rubberized AC Pavement cap per
Caltrans Standards using MTV per the "Green Book" SF 5,270 $136.50 $719,355.00 5270 $145.00 $764,150.00 5270 $160.00 $843,200.00 5270 $150.00 $790,500.00 5270 $154.00 $811,580.00 6 Adjust Existing Storm Drain/ Sewer/Utility Manhole Frames and Covers to Finished Grade per City of Adelanto latest standards. A 12" wide by 6" thick concrete collar band ( TON 20 $1,987.00 $39,740.00 20 $1,500.00 $30,000.00 20 $950.00 $19,000.00 20 $2,050.00 $41,000.00 20 $2,200.00 $44,000.00 7 Adjust Existing Water Valve Cans and Covers to Finished Grade. A 12" wide by 6" thick concrete collar band (4,000 psi) must be constructed around each valve cover.
TON 15 $1,580.00 $23,700.00 15 $1,500.00 $22,500.00 15 $1,500.00 $22,500.00 15 $1,630.00 $24,450.00 15 $1,700.00 $25,500.00 8 Install Traffic Striping, Markings, Curb Painting, and Signs EA 1 $34,245.00 $34,245.00 1 $35,000.00 $35,000.00 1 $35,000.00 $35,000.00 1 $35,000.00 $35,000.00 1 $48,000.00 $48,000.00 9 Install Public Improvement Project Signs EA 2 $1,223.00 $2,446.00 2 $2,500.00 $5,000.00 2 $1,500.00 $3,000.00 2 $1,680.00 $3,360.00 2 $1,300.00 $2,600.00 10 Provide Erosion Control and BMPs LS 1 $4,593.00 $4,593.00 1 $15,000.00 $15,000.00 1 $7,500.00 $7,500.00 1 $32,500.00 $32,500.00 1 $12,000.00 $12,000.00 11 Provide Construction Survey, Staking, Re-establish Survey Monuments and Centerline Ties EA 1 $13,863.00 $13,863.00 1 $65,000.00 $65,000.00 1 $25,000.00 $25,000.00 1 $14,300.00 $14,300.00 1 $15,000.00 $15,000.00 TOTAL BASE BID $2,981,251.00 $3,089,150.00 $3,311,550.00 $3,402,710.00 $4,026,380.00 6TH LOW
CALMEX ENG
7TH LOW
LCR EARTHWORK & ENG
8TH LOW
ONYX PAVING
9TH LOW
HILLCREST
10TH LOW
HARDY & HARPER
Air Expressway ROAD REHABILITATON
BID OPENING: 3:00 P.M., June 16th, 2026
LOWEST BIDDER
SULLY MILLER
2ND LOW
CHRISTENSEN ENGINEERING
3RD LOW BIDDER
VANCE CORP
4TH LOW BIDDER
ROMERO
5TH LOW
PAVE-TECH INC
Attachment B
32 Attachment C
33 34
35 36
37 38
39 40
41 42
43 44
45 46
47 48
49 50
51 52
53 54
55 56
57 58
59 60
61 62
63 64
65 66
67 68
69 70
71 72
73 74
75 76
77 78
2512/026150-0001
19521958.1 a06/17/26
CITY OF ADELANTO
CONTRACT SERVICES AGREEMENT
Air Expressway Rehabilitation Project
THIS CONTRACT SERVICES AGREEMENT (“Agreement”) is made and effective this ____24_____ day of _____June______, 2026 by and between the CITY OF ADELANTO, a California municipal corporation, (“City”) and Sully-Miller Contracting Co., a Paving Contractor, (“Contractor”). City and Contractor are sometimes hereinafter individually referred to as “Party” and hereinafter collectively referred to as the “Parties”.
City sought, by issuance of a Request for Proposals or Invitation for Bids, for the performance of the services defined and described particularly in this Agreement. Contractor, following submission of a proposal or bid for the performance of the services defined and described particularly in this Agreement, was selected by City to perform those services. The Parties desire to formalize the selection of Contractor for performance of those services defined and described particularly in this Agreement and desire that the terms of that performance be as particularly defined and described herein.
SECTION 1. SERVICES.
1.1 Scope of Services. Subject to the terms and conditions set forth in this Agreement, Contractor shall provide to City the services described in the Scope of Services, attached hereto as Exhibit A, “Scope of Services” and incorporated herein by this reference (the “Services”).
Contractor will perform subsequent task orders as requested by the Contract Administrator (as defined below), in accordance with the Scope of Services. The Scope of Services incorporates Contractor’s scope of work or bid for the Services. In the event of a conflict in or inconsistency between the terms of this Agreement and Exhibit A, this Agreement shall prevail.
1.2 Term of Services. The term of this Agreement shall begin on June 24th , 2026.
Unless earlier terminated in accordance with Section 8 of this Agreement, this Agreement shall continue in full force and effect until final written approval and acceptance of the work performed under this Agreement by the Contract Administrator. The time provided to Contractor to complete the Services required by this Agreement shall not affect City’s right to terminate this Agreement, as provided for in Section 8.
1.3 Standard of Performance.
a. Quality of Work. As a material inducement to City entering into this Agreement, Contractor represents and warrants that it has the qualifications, experience, and facilities necessary to properly perform the Services required under this Agreement in a thorough, competent, and professional manner, and is experienced in performing the Services contemplated herein. Contractor shall at all times faithfully, competently, and to the best of its ability, experience, and talent, perform all Services described herein. Contractor covenants that it shall follow the highest professional standards in performing the Services required hereunder and that all materials will be of good quality, fit for the purpose intended. For purposes of this Agreement, the phrase “highest professional standards” shall mean those standards of practice recognized by Attachment D
79 2512/026150-0001
19521958.1 a06/17/26 -2-
one or more first-class firms performing similar work under similar circumstances, and to the sole satisfaction of the Contract Administrator.
b. Care of Work. Contractor shall adopt reasonable methods during the term of this Agreement to furnish continuous protection to the Services, and the equipment, materials, papers, documents, plans, studies, and/or other components thereof to prevent losses or damages, and shall be responsible for all such damages, to persons or property, until acceptance of the Services by City, except such losses or damages as may be caused by City’s own negligence. c. Safety. Contractor shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out the Services, Contractor shall at all times be in compliance with all applicable local, state, and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions as applicable shall include, but shall not be limited to: (A) adequate life protection and life saving equipment and procedures; (B) instructions in accident prevention for all employees and subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures. d. Warranty. Contractor warrants all work under this Agreement (which for purposes of this Subsection 1.3 shall be deemed to include unauthorized work which has not been removed and any non-conforming materials incorporated into the work) to be of good quality and free from any defective or faulty material and workmanship. Contractor agrees that for a period of one (1) year (or the period of time specified elsewhere in this Agreement or in any guarantee or warranty provided by any manufacturer or supplier of equipment or materials incorporated into the work, whichever is later) after the date of final acceptance, Contractor shall within ten (10) days after being notified in writing by City of any defect in the work or non-conformance of the work to this Agreement, commence and prosecute with due diligence all work necessary to fulfill the terms of the warranty at Contractor’s sole cost and expense. Contractor shall act sooner as requested by City in response to an emergency. In addition, Contractor shall, at its sole cost and expense, repair and replace any portions of the work (or work of other contractors) damaged by Contractor’s defective work or which becomes damaged in the course of repairing or replacing defective work. For any work so corrected, Contractor’s obligation hereunder to correct defective work shall be reinstated for an additional one (1) year period, commencing with the date of acceptance of such corrected work. Contractor shall perform such tests as City may require to verify that any corrective actions, including, without limitation, redesign, repairs, and replacements comply with the requirements of this Agreement. All costs associated with such corrective actions and testing, including the removal, replacement, and reinstitution of equipment and materials necessary to gain access, shall be the sole responsibility of Contractor. All warranties and guarantees of subcontractors, suppliers, and manufacturers with respect to any portion of the work, whether express or implied, are deemed to be obtained by Contractor for the benefit of City, regardless of whether or not such warranties and guarantees have been transferred or assigned to City by separate agreement and Contractor agrees to enforce such warranties and guarantees, if necessary, on behalf of City. In the event that Contractor fails to perform its obligations under this Section, or under any other warranty or guaranty under this Agreement, to 80 2512/026150-0001
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the reasonable satisfaction of City, City shall have the right to correct and replace any defective or non-conforming work and any work damaged by such work or the replacement or correction thereof at Contractor’s sole expense. Contractor shall be obligated to fully reimburse City for any expenses incurred hereunder upon demand.
e. Skilled and Trained Workforce. Contractor, for itself and its subcontractors at every tier, hereby provides an enforceable commitment to comply with California Public Contract Code section 2600 et seq., which requires use of a skilled and trained workforce to perform all work on the agreements that fall within an apprenticeable occupation in the building and construction trades.
f. Inspection and Final Acceptance. The Services shall be performed to the satisfaction of City. City may inspect and accept or reject any of Contractor’s work under this Agreement, during performance and/or when completed. City shall reject or finally accept Contractor’s work within forty five (45) days after submitted to City. City shall accept work by a timely written acceptance, otherwise work shall be deemed to have been rejected. City’s acceptance shall be conclusive as to such work except with respect to latent defects, fraud, and such gross mistakes as amount to fraud. Acceptance of any work by City shall not constitute a waiver of any of the provisions of this Agreement including, but not limited to, Section 4 and Section 5, pertaining to insurance and indemnification, respectively.
1.4 Assignment of Personnel. Contractor shall assign only competent personnel to perform the Services. Contractor shall make every reasonable effort to maintain the stability and continuity of Contractor’s staff and subcontractors, if any, assigned to perform the Services.
Contractor shall notify City of any changes in Contractor’s staff and subcontractors, if any, assigned to perform the Services, prior to and during any such performance. In the event that City, in its sole discretion, at any time during the term of this Agreement, desires the reassignment of any such persons, Contractor shall, immediately upon receiving notice from City of such desire of City, reassign such person or persons.
1.5 Time. Time is of the essence in the performance of this Agreement. Contractor shall devote such time to the performance of the Services pursuant to this Agreement as may be reasonably necessary to satisfy Contractor’s obligations hereunder. Contractor shall commence the Services pursuant to this Agreement upon receipt of a written notice to proceed and shall perform all Services within the time period(s) established in the Scope of Services. When requested by Contractor, extensions to the time period(s) specified in the Scope of Services may be approved in writing by the Contract Administrator but shall not exceed forty (40) working days cumulatively.
1.6 Force Majeure. The time period(s) specified in the Scope of Services for performance of the Services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of Contractor, including, but not restricted to, acts of God or of the public enemy, unusually severe weather, fires, earthquakes, floods, epidemics, quarantine restrictions, riots, strikes, freight embargoes, wars, litigation, and/or acts of any governmental agency, including City, if Contractor shall within ten (10) days of the commencement of such delay notify the Contract Administrator in writing of the causes of the delay. The Contract Administrator shall ascertain the facts and the 81 2512/026150-0001
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extent of delay and extend the time for performing the Services for the period of the enforced delay when and if in the sole judgment of the Contract Administrator such delay is justified. The Contract Administrator’s determination shall be final and conclusive upon the Parties to this Agreement. In no event shall Contractor be entitled to recover damages against City for any delay in the performance of this Agreement, however caused, Contractor’s sole remedy being extension of this Agreement pursuant to this Section.
1.7 Suspension of Services. The City Engineer of City (“Engineer”) shall have the authority to suspend the Services, wholly or in part, for such period as the Engineer may deem necessary, due to unsuitable weather or to such other conditions as are considered unfavorable for the suitable prosecution of the Services, or for such time as the Engineer may deem necessary due to the failure on the part of Contractor to carry out orders given or to perform any provisions of the Services. Contractor shall immediately comply with the written order of the Engineer to suspend the Services wholly or in part and shall not resume the Services until ordered to do so in writing by the Engineer. Such suspension shall be without liability to Contractor on the part of City. In the event a suspension of work is ordered because of failure on the part of Contractor to carry out orders given or to perform any provisions of the Services, such suspension of the Services shall not relieve Contractor of responsibility to complete the Services within the time limit set forth herein and shall not be considered cause for extension of the time for completion and, further, such suspension of the Services shall not entitle Contractor to any additional compensation.
1.8 Familiarity with Work and Worksite. By executing this Agreement, Contractor warrants that Contractor (i) has thoroughly investigated and considered the Services, (ii) has carefully considered how the Services should be performed, and (iii) fully understands the facilities, difficulties, and restrictions attending performance of the Services. If the Services involve work upon any site, Contractor warrants that Contractor has or will investigate the site and is or will be fully acquainted with the conditions there existing, prior to commencement of the Services hereunder. Should Contractor discover any latent or unknown conditions, which will materially affect the performance of the Services hereunder, Contractor shall immediately inform City of such fact and shall not proceed until written instructions are received from the Contract Administrator.
1.9 Further Responsibilities of the Parties. Both Parties agree to use reasonable care and diligence to perform their respective obligations under this Agreement. Both Parties agree to act in good faith to execute all instruments, prepare all documents, and take all actions as may be reasonably necessary to carry out the purposes of this Agreement. Unless otherwise specified in this Agreement, neither Party shall be responsible for the service of the other.
SECTION 2. COMPENSATION.
2.1 Contract Amount. City hereby agrees to pay Contractor a sum not to exceed ONE
MILLION, EIGHT HUNDRED AND NINTY-FIVE THOUSAND, EIGHT HUNDRED AND SEVENTY FIVE DOLLARS WITH ZERO CENTS ($1,895,875.00) notwithstanding any contrary indications that may be contained in Contractor’s proposal or bid, for the Services to be performed and reimbursable costs incurred under this Agreement. This compensation may be administratively adjusted pursuant to Section 8.4 herein. In the event of a conflict between this Agreement and Exhibit A, regarding the amount of compensation, this Agreement shall prevail. 82 2512/026150-0001
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City shall pay Contractor for the Services rendered pursuant to this Agreement at the time and in the manner set forth herein. The payments specified in this Section 2 shall be the only payments from City to Contractor for the Services rendered pursuant to this Agreement. Contractor shall submit all invoices to City in the manner specified herein.
2.2 Method of Compensation. The method of compensation may include: (i) a lump sum payment upon completion, (ii) payment in accordance with specified tasks or the percentage of completion of the Services, (iii) payment for time and materials based upon Contractor’s rates as specified in the Scope of Services, provided that time estimates are provided for the performance of subtasks, or (iv) such other methods as may be specified in the Scope of Services. In no event shall compensation exceed the amount set forth in Subsection 2.1.
2.3 Invoices. Contractor shall submit invoices monthly during the term of this Agreement, based on the cost for the Services performed and reimbursable costs incurred prior to the invoice date. The invoice shall detail charges for all necessary and actual expenses by the following categories: labor (by sub-category), travel, materials, equipment, supplies, and subcontractor contracts. Subcontractor charges shall also be detailed by such categories. Invoices shall contain:
a. Serial identifications of progress bills; i.e., Progress Bill No. 1 for the first invoice, etc.;
b. The beginning and ending dates of the billing period; c. A “Task Summary” containing the original contract amount, the amount of prior billings, the total due this period, the balance available under this Agreement, and the percentage of completion;
d. At City’s option, for each item in each task, a copy of the applicable time entries or time sheets shall be submitted showing the name of the person performing the Services, the hours spent by each person, a brief description of the Services, and each reimbursable expense; e. The total number of hours of work performed under this Agreement by Contractor and each employee, agent, and subcontractor of Contractor performing the Services hereunder necessary to complete the Services described in Exhibit A; f. Receipts for expenses to be reimbursed;
g. The Principals’ signatures.
Invoices shall be submitted to:
City of Adelanto
Attn: Accounts Payable
11600 Air Expressway
Adelanto, CA 92301
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2.4 City Payment of Invoices. City shall independently review each invoice submitted by Contractor to determine whether the work performed and expenses incurred are in compliance with the provisions of this Agreement. City will use its best efforts to cause Contractor to be paid within thirty (30) days of receipt of Contractor’s correct and undisputed invoice. In the event any charges or expenses are disputed by City, the original invoice shall be returned by City to Contractor for correction and resubmission. Pursuant to California Public Contract Code Section 20104.50, Contractor is notified that for public works Services, City’s failure to pay undisputed and properly submitted invoices within thirty (30) days shall be subject to interest at the legal rate set forth in Code of Civil Procedure Section 685.010. Any invoice for public works Services determined not to be a proper invoice suitable for payment shall be returned to the Contractor as soon as practicable, but not later than seven (7) days, after receipt. An invoice returned pursuant to the foregoing shall be accompanied by a writing stating the reasons why the invoice is not proper.
2.5 Retention of Funds, Final Payment.
a. Contractor hereby authorizes City, in the sole discretion of the Contract Administrator, to retain and deduct from any amount payable to Contractor not exceeding five percent (5%) of the total compensation The retained funds shall be paid to Contractor within sixty (60) days after final acceptance of the Services by the City and after Contractor has furnished City with full release of all undisputed payments under this Agreement. In the event there are any claims specifically excluded by Contractor from the operation of the release, City may retain proceeds of up to one hundred fifty percent (150%) of the amount in dispute. The failure of City to exercise such right to deduct or to withhold shall not, however, affect the obligations of Contractor to insure, indemnify, and protect City as provided in this Agreement. b. Notwithstanding Paragraph a, California Public Contract Code Section 22300 permits the substitution of securities for any retention monies withheld by City for public works Services. At the request and expense of Contractor, securities equivalent to the monies withheld shall be deposited with City, or with a state or federally chartered bank in California as the escrow agent, who shall then pay such monies to Contractor. City retains the sole discretion to approve the bank selected by Contractor to serve as escrow agent. Upon satisfactory completion of the Services, the securities shall be returned to Contractor. Securities eligible for investment shall include those listed in Government Code Section 16430. Contractor shall be the beneficial owner of any securities substituted for monies withheld and shall receive any interest thereon. In the alternative, under California Public Contract Code Section 22300, Contractor may request City to make payment of earned retention monies directly to the escrow agent at the expense of Contractor. Also at Contractor’s expense, Contractor may direct investment of the payments into securities, and Contractor shall receive interest earned on such investment upon the same conditions as provided for securities deposited by Contractor. Upon satisfactory completion of the Services, Contractor shall receive from the escrow agent all securities, interest and payments received by escrow agent from City pursuant to the terms of California Public Contract Code Section 22300.
2.6 Total Payment. City shall not pay any additional sum for any expense or cost whatsoever incurred by Contractor in rendering the Services pursuant to this Agreement. City shall make no payment for any extra, further, or additional service pursuant to this Agreement. In 84 2512/026150-0001
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no event shall Contractor submit any invoice for an amount in excess of the maximum amount of compensation provided above either for a task or for the entirety of the Services performed pursuant to this Agreement, unless this Agreement is modified in writing prior to the submission of such an invoice.
2.7 Hourly Fees. Fees for the Services performed by Contractor on an hourly basis shall not exceed the amounts shown on Exhibit A.
2.8 Reimbursable Expenses. Reimbursable expenses are included within the maximum amount of this Agreement. Reimbursable expenses not listed in Exhibit A must be approved in advance by the Contract Administrator, in his or her sole discretion. Contractor shall not be entitled to any additional compensation for the attendance of meetings reasonably deemed necessary by City for the execution of the Services.
2.9 Payment of Taxes. Contractor is solely responsible for the payment of employment taxes incurred under this Agreement and any federal or state taxes.
2.10 Payment upon Termination. In the event that City or Contractor terminates this Agreement pursuant to Section 8, City shall compensate Contractor for all outstanding costs and reimbursable expenses incurred for Services satisfactorily completed and for reimbursable expenses as of the date of written notice of termination. Contractor shall maintain adequate logs and timesheets in order to verify costs and reimbursable expenses incurred to that date.
2.11 No Waiver. Payment to Contractor for Services performed pursuant to this Agreement shall not be deemed to waive any defects in work performed by Contractor.
SECTION 3. FACILITIES AND EQUIPMENT.
3.1 Contractor Provides Facilities and Equipment. Except as otherwise provided, Contractor shall, at its sole cost and expense, provide all facilities and equipment necessary to perform the services required by this Agreement. In no event shall City be required to furnish any facility or equipment that may involve incurring any direct expense.
3.2 Utility Relocation. Where applicable, pursuant to California Government Code Section 4215, City is responsible for removal, relocation, or protection of existing main or trunkline utilities to the extent such utilities were not identified in the invitation for bids or specifications. City shall reimburse Contractor for any costs incurred in locating, repairing damage not caused by Contractor, and removing or relocating such unidentified utility facilities.
Contractor shall not be assessed liquidated damages for delay arising from the removal or relocation of such unidentified utility facilities.
3.3 Trenches or Excavations. Pursuant to California Public Contract Code Sections 6705 and 7104, in the event the work included in this Agreement requires excavations more than four (4) feet in depth, the following shall apply.
a. Contractor shall promptly, and before the following conditions are disturbed, notify City, in writing, of any: (1) material that Contractor believes may be material that is hazardous waste, as defined in Section 25117 of the Health and Safety Code, that is required 85 2512/026150-0001
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to be removed to a Class I, Class II, or Class III disposal site in accordance with provisions of existing law; (2) subsurface or latent physical conditions at the site different from those indicated by information about the site made available to bidders prior to the deadline for submitting bids; or (3) unknown physical conditions at the site of any unusual nature, different materially from those ordinarily encountered and generally recognized as inherent in work of the character provided for in this Agreement.
b. If the Services involve an estimated expenditure in excess of Twenty-Five Thousand Dollars ($25,000) for the excavation of any trench or trenches five (5) feet or more in depth, Contractor shall submit for acceptance by the City Engineer, in advance of excavation, a detailed plan showing the design of shoring, bracing, sloping, or other provisions to be made for worker protection from the hazard of caving ground during the excavation of such trench or trenches. If such plan varies from the shoring system standards, the plan shall be prepared by a registered civil or structural engineer.
c. City shall promptly investigate the conditions, and if it finds that the conditions do materially so differ, or do involve hazardous waste, and cause a decrease or increase in Contractor’s cost of, or the time required for, performance of any part of the work shall issue an order or amendment for additional services pursuant to Subsection 8.4 or 8.5 of this Agreement. d. If a dispute arises between City and Contractor whether the conditions materially differ, or involve hazardous waste, or cause a decrease or increase in Contractor’s cost of, or time required for, performance of any part of the work, Contractor shall not be excused from any scheduled completion date provided for by this Agreement, but shall proceed with all work to be performed under this Agreement. Contractor shall retain any and all rights provided either by contract or by law which pertain to the resolution of disputes and protests between the Parties.
SECTION 4. INSURANCE AND BOND REQUIREMENTS.
Before beginning any work under this Agreement, Contractor, at its own cost and expense, shall procure the types and amounts of insurance listed below and provide certified copies of insurance policies and original endorsements, indicating that Contractor has obtained or currently maintains insurance that meets the requirements of this Section and which is satisfactory, in all respects, to City. Contractor shall also deliver the payment and performance bonds required by this Section 4 with City. Contractor shall maintain the insurance policies required by this Section throughout the term of this Agreement. The cost of such insurance shall be included in Contractor’s compensation. Contractorshall not allow any subcontractor, Contractor or other agent to commence work on any subcontract until Contractor has obtained all insurance required herein for the subcontractor(s) and provided evidence thereof to City, and has delivered the required bonds to City. Verification of the required insurance shall be submitted and made part of this Agreement prior to execution. Contractor acknowledges the insurance policy must cover interinsured suits between City and other insureds. Contractor agrees that the requirement to provide insurance shall not be construed as limiting in any way the extent to which Contractor may be held responsible for the payment of damages to any persons or property resulting from Contractor’s activities or the activities of any person or persons for which Contractor is otherwise responsible nor shall it limit Contractor’s indemnification liabilities as provided in Section 5. Insurance or bonds required by this Agreement shall be satisfactory only if issued by companies qualified to do 86 2512/026150-0001
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business in California, rated “A” or better in the most recent edition of Best Rating Guide, The Key Rating Guide, or in the Federal Register, and only if they are of a financial category Class VII or better, unless such requirements are waived by the Contract Administrator in the Contract Administrator’s sole discretion. If this Agreement continues for more than three (3) years duration, or in the event the Contract Administrator determines that the Services to be performed under this Agreement creates an increased or decreased risk of loss to City, Contractor agrees that the minimum limits of the insurance policies and the performance bond required by Section 4 may be changed accordingly upon receipt of written notice from the Contract Administrator; provided that Contractor shall have the right to appeal a determination of increased coverage by the Contract Administrator to the City Council of City within ten (10) days of receipt of notice from the Contract Administrator.
4.1 Workers’ Compensation. Contractor shall, at its sole cost and expense, maintain Statutory Workers’ Compensation Insurance and Employer’s Liability Insurance for any and all persons employed directly or indirectly by Contractor pursuant to the provisions of the California Labor Code. Statutory Workers’ Compensation Insurance and Employer’s Liability Insurance shall be provided with limits of not less than ONE MILLION DOLLARS ($1,000,000.00) per accident, ONE MILLION DOLLARS ($1,000,000.00) disease per employee, and ONE MILLION DOLLARS ($1,000,000.00) disease per policy. In the alternative, Contractor may rely on a selfinsurance program to meet those requirements, but only if the program of self-insurance complies fully with the provisions of the California Labor Code. Determination of whether a self-insurance program meets the standards of the California Labor Code shall be solely in the discretion of the Contract Administrator. The insurer, if insurance is provided, or Contractor, if a program of selfinsurance is provided, shall waive all rights of subrogation against City and its officers, officials, employees, and authorized volunteers for loss arising from the Services performed under this Agreement. Pursuant to California Labor Code Section 1860, Contractor is required to secure the payment of compensation to Contractor’s employees. Pursuant to California Labor Code Section 1861, Contractor hereby submits to City the following:
I am aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract.
Contractor Initial: _______
4.2 Commercial General and Automobile Liability Insurance. a. General Requirements. Contractor, at its own cost and expense, shall maintain commercial general and automobile liability insurance for the term of this Agreement in an amount not less than ONE MILLION DOLLARS ($1,000,000.00) per occurrence, combined single limit coverage, for risks associated with the Services contemplated by this Agreement, TWO MILLION DOLLARS ($2,000,000.00) general aggregate, and TWO MILLION DOLLARS ($2,000,000.00) products/completed operations aggregate. If a Commercial General Liability Insurance or an Automobile Liability Insurance form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the Services to be performed under this Agreement or the general aggregate limit shall be at least twice the 87 2512/026150-0001
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required occurrence limit. Such coverage shall include but shall not be limited to, protection against claims arising from bodily and personal injury, including death resulting therefrom, and damage to property resulting from the Services contemplated under this Agreement, including the use of hired, owned, leased, and non-owned automobiles. b. Minimum Scope of Coverage. Commercial general coverage shall be at least as broad as Insurance Services Office Commercial General Liability occurrence form CG 0001. Automobile coverage shall be at least as broad as Insurance Services Office Automobile Liability form CA 0001 Code 2, 8, and 9 including “any auto” and endorsement CA 0025 or equivalent). No endorsement shall be attached limiting the coverage. c. Additional Requirements. Each of the following shall be included in the insurance coverage or added as a certified endorsement to the policy:
(i) The insurance shall cover on an occurrence or an accident basis, and not on a claims-made basis.
(ii) The policy must cover inter-insured suits and include a “Separation of Insureds” or “severability” clause which treats each insured separately. (iii) The insurance must be maintained for at least one (1) year following the completion of the Services or the expiration or termination of this Agreement. (iv) Any failure of Contractor to comply with reporting provisions of the policy shall not affect coverage provided to City and its officers, employees, agents, and volunteers.
4.3 Professional Liability Insurance.
a. General Requirements. Contractor, at its own expense, shall maintain professional liability insurance appropriate to Contractor’s profession. This coverage may be written on a “claims made” basis, and must include coverage for contractual liability. The professional liability insurance required by this Agreement must be endorsed to be applicable to claims based upon, arising out of, or related to the Services performed under this Agreement. The insurance must be maintained for at least five (5) consecutive years following the completion of the Services or the expiration or termination of this Agreement. During this additional five (5)- year period, Contractor shall annually and upon request of City submit written evidence of this continuous coverage.
b. Claims-Made Limitations. The following provisions shall apply if the professional liability coverage is written on a claims-made form:
(i) The retroactive date of the policy must be shown and must be no later than the commencement of the Services.
(ii) If coverage is canceled or not renewed and it is not replaced with another claims-made policy form with a retroactive date that precedes the Effective Date of this Agreement, Contractor must provide extended reporting coverage for a minimum of five (5) years 88 2512/026150-0001
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after the expiration or termination of this Agreement or the completion of the Services. Such continuation coverage may be provided by one of the following: (1) renewal of the existing policy; (2) an extended reporting period endorsement; or (3) replacement insurance with a retroactive date no later than the commencement of the Services under this Agreement. City shall have the right to exercise, at Contractor’s sole cost and expense, any extended reporting provisions of the policy, if Contractor cancels or does not renew the coverage.
(iii) A copy of the claim reporting requirements must be submitted to City prior to the commencement of the Services under this Agreement.
4.4 Pollution Liability Insurance. Contractor, at its own expense, shall maintain pollution liability insurance written on a per occurrence for bodily injury, personal injury and property damage. The policy of insurance shall be in an amount not less than ONE MILLION DOLLARS ($1,000,000.00) per pollution incident and ONE MILLION DOLLARS ($1,000,000.00) in the general aggregate. The policy shall apply to any incidents at or from any location on which Contractor performs the Services under this Agreement. The insurance must be maintained for at least one (1) year following the completion of Contractor’s services or the expiration or termination of this Agreement.
4.5 All Policies Requirements.
a. Verification of Coverage. Prior to beginning the Services under this Agreement, Contractor shall furnish City with certificates of insurance, additional insured endorsement or policy language granting additional insured status complete certified copies of all policies, including complete certified copies of all endorsements. All copies of policies and certified endorsements shall show the signature of a person authorized by that insurer to bind coverage on its behalf. The certificate of insurance must include the following reference: Air Expressway Rehabilitation Project. The name and address for additional insured endorsements, certificates of insurance and notice of cancellation is: City of Adelanto, 11600 Air Expressway, Adelanto, CA 92301. City must be endorsed as an additional insured for liability arising out of ongoing and completed operations by or on behalf of Contractor. b. Notice of Reduction in or Cancellation of Coverage. Contractor shall provide written notice to City within ten (10) working days if: (1) any of the required insurance policies is terminated; (2) the limits of any of the required polices are reduced; or (3) the deductible or self insured retention is increased. In the event any of said policies of insurance are cancelled, Contractor shall, prior to the cancellation date, submit new evidence of insurance in conformance with this Section 4 to the Contract Administrator.
c. Additional Insured; Primary Insurance. City and its officers, employees, agents, and authorized volunteers shall be covered as additional insureds with respect to each of the following: liability arising out of the Services performed by or on behalf of Contractor, including the insured’s general supervision of Contractor; products and completed operations of Contractor, as applicable; premises owned, occupied, or used by Contractor; and automobiles owned, leased, or used by Contractor in the course of providing the Services pursuant to this Agreement. The coverage shall contain no special limitations on the scope of protection afforded to City or its officers, employees, agents, or authorized volunteers. The insurance provided to City 89 2512/026150-0001
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as an additional insured must apply on a primary and non-contributory basis with respect to any insurance or self-insurance program maintained by City. Additional insured status shall continue for one (1) year after the expiration or termination of this Agreement or completion of the Services.
A certified endorsement must be attached to all policies stating that coverage is primary insurance with respect to City and its officers, officials, employees, and volunteers, and that no insurance or self-insurance maintained by City shall be called upon to contribute to a loss under the coverage. The insurer is deemed hereof to waive all rights of subrogation and contribution it may have against City, its officers, employees, agents, authorized volunteers, and their respective insurers.
d. Deductibles and Self-Insured Retentions. Contractor shall obtain the written approval of City for the self-insured retentions and deductibles before beginning any of the Services. During the term of this Agreement, only upon the prior express written authorization of the Contract Administrator, Contractor may increase such deductibles or self-insured retentions with respect to City, its officers, employees, agents, and volunteers. The Contract Administrator may condition approval of an increase in deductible or self-insured retention levels with a requirement that Contractor procure a bond guaranteeing payment of losses and related investigations, claim administration, and defense expenses that is satisfactory in all respects to each of them.
e. Subcontractors. Contractor shall include all subcontractors as insureds under its policies or shall furnish separate certificates and certified endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein.
f. Variation. The Contract Administrator may, but is not required to, approve in writing a variation in the foregoing insurance requirements, upon a determination that the coverage, scope, limits, and forms of such insurance are either not commercially available, or that City’s interests are otherwise fully protected.
4.6 Payment and Performance Bonds. Concurrently with execution of this Agreement, Contractor shall deliver to City a payment (labor and materials) bond and a performance bond, each in the sum of the amount of this Agreement, in the forms provided by the City Clerk, which secure the faithful performance of this Agreement. The bonds shall contain the original notarized signature of an authorized officer of the surety and affixed thereto shall be a certified and current copy of his power of attorney. The bonds shall be unconditional and remain in force during the entire term of this Agreement and shall be null and void only if Contractor promptly and faithfully performs all terms and conditions of this Agreement. Payment and performance bonds shall be secured from a surety company rated Grade “A” or better in the most recent edition of Best Rating Guide, The Key Rating Guide, or in the Federal Register, and only if they are of a financial category Class VII or better, unless such requirements are waived by the Contract Administrator due to unique circumstances, and shall be authorized to write such bonds in the State of California. Contractor shall pay all bond premiums, costs, and incidentals. Pursuant to California Public Contract Code Section 22300, substitution of eligible equivalent securities for any moneys withheld to ensure performance under this Agreement may be permitted at the request and expense of Contractor. Without limiting the foregoing, Contractor understands that Civil Code Section 90 2512/026150-0001
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9550 requires a payment bond for all public works contracts involving an expenditure of more than Twenty-Five Thousand Dollars ($25,000).
4.7 Remedies. In addition to any other remedies at law or equity City may have if Contractor fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, City may, at its sole option, exercise any of the following remedies, which are alternatives to other remedies City may have and are not the exclusive remedy for Contractor’s breach:
a. Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under this Agreement; b. Order Contractor to stop work under this Agreement or withhold any payment that becomes due to Contractor hereunder, or both stop work and withhold any payment, until Contractor demonstrates compliance with the requirements hereof; and/or c. Terminate this Agreement.
SECTION 5. INDEMNIFICATION.
5.1 Indemnification for Professional Liability. Where the law establishes a professional standard of care for performance of the Services, to the fullest extent permitted by law, Contractor shall indemnify, protect, defend (with counsel selected by City), and hold harmless City and any and all of its officers, employees, officials, volunteers, and agents from and against any and all claims, losses, costs, damages, expenses, liabilities, liens, actions, causes of action (whether in tort, contract, under statute, at law, in equity, or otherwise) charges, awards, assessments, fines, or penalties of any kind (including costs and expenses incurred by City and reasonable consultant and expert fees and expenses of investigation, costs of whatever kind and nature and, if Contractor fails to provide a defense for City, the legal costs of counsel retained by City) and any judgment (collectively, “Claims”) to the extent same are caused in whole or in part by any negligent or wrongful act, error, or omission of Contractor, its officers, agents, employees, or subcontractors (or any entity or individual that Contractor shall bear the legal liability thereof) in the performance of professional services under this Agreement.
5.2 Indemnification for Other than Professional Liability. Other than in the performance of professional services and to the full extent permitted by law, Contractor shall indemnify, protect, defend (with counsel selected by City), and hold harmless City, and any and all of its officers, employees, officials, volunteers, and agents from and against any and all Claims, where the same arise out of, are a consequence of, or are in any way attributable to, in whole or in part, the performance of this Agreement by Contractor or by any individual or entity for which Contractor is legally liable, including but not limited to officers, agents, employees or subcontractors of Contractor. Contractor will promptly pay any judgment rendered against City, its officers, agents, or employees for any such Claims arising out of or in connection with the performance of or failure to perform such Services, operations or activities of Contractor hereunder.
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5.3 Subcontractors. Contractor shall incorporate similar indemnity agreements with its subcontractors. Contractor shall be fully responsible to indemnify City, and failure of City to monitor compliance with these provisions shall not be a waiver hereof.
5.4 Limitation of Indemnification. The provisions of this Section 5 do not apply to claims occurring as a result of City’s sole or active negligence. The provisions of this Section 5 shall not release City from liability arising from gross negligence or willful acts or omissions of City or any and all of its officers, officials, employees, and agents acting in an official capacity.
In the event any applicable law contains a limitation on indemnification under this Agreement, such limitation shall supersede the provisions herein only to the extent required by said law.
SECTION 6. INDEPENDENT CONTRACTOR.
At all times during the term of this Agreement, Contractor shall be an independent contractor and shall not be an employee of City. City shall have the right to control Contractor only insofar as the results of the Services rendered pursuant to this Agreement and assignment of personnel pursuant to Subsection 1.4; however, otherwise City shall not have the right to control the means by which Contractor accomplishes the Services rendered pursuant to this Agreement.
The personnel performing the Services under this Agreement on behalf of Contractor shall at all times be under Contractor’s exclusive direction and control. Contractor shall not at any time or in any manner represent that it is or any of its officers, employees, or agents are in any manner officers, officials, employees, or agents of City. Contractor shall not incur or have the power to incur any debt, obligation, or liability whatever against City, or bind City in any manner. Except for the fees paid to Contractor as provided in this Agreement, City shall not pay salaries, wages, or other compensation to Contractor for performing the Services hereunder for City. City shall not be liable for compensation or indemnification to Contractor for injury or sickness arising out of performing the Services hereunder. Notwithstanding any other City, state, or federal policy, rule, regulation, law, or ordinance to the contrary, Contractor and any of its employees, agents, and subcontractors providing services under this Agreement shall not qualify for or become entitled to any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in the California Public Employees Retirement System (“PERS”) as an employee of City and entitlement to any contribution to be paid by City for employer contributions and/or employee contributions for PERS benefits. Contractor shall perform all Services required herein as an independent contractor of City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role.
City shall not in any way or for any purpose become or be deemed to be a partner of Contractor in its business or otherwise or a joint venturer or a member of any joint enterprise with Contractor.
SECTION 7. LEGAL REQUIREMENTS.
7.1 Governing Law. The laws of the State of California shall govern this Agreement.
7.2 Compliance with Applicable Laws. Contractor and any subcontractor shall comply with all applicable local, state, and federal laws and regulations applicable to the performance of the work hereunder. Contractor shall not hire or employ any person to perform work within City or allow any person to perform the Services required under this Agreement unless such person is properly documented and legally entitled to be employed within the United States. Contractor 92 2512/026150-0001
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acknowledges and agrees that it shall be independently responsible for reviewing the applicable laws and regulations and effectuating compliance with such laws. Contractor shall require the same of all subcontractors.
7.3 Prevailing Wages. Contractor acknowledges and agrees that it shall be independently responsible for reviewing the applicable prevailing wage laws and regulations and effectuating compliance with such laws, including, but not limited to the prevailing wage and related requirements set forth in this Subsection 7.3. Contractor shall bear all risks of payment or non-payment of prevailing wages under California law and/or the implementation of California Labor Code Section 1781, as the same may be amended from time to time, and/or any other similar law.
a. Public Work. Contractor hereby expressly acknowledges and agrees that City has never previously affirmatively represented to Contractor, its employees or agents in writing or otherwise that the Services are not a “public work,” as defined in Section 1720 of the California Labor Code. It is agreed by the Parties that, in connection with the development, construction (as defined by applicable law) and operation of the Services, including, without limitation, any public work (as defined by applicable law), if any, Contractor shall bear all risks of payment or non-payment of state and/or federal prevailing wages and/or the implementation of California Labor Code Sections 1726 and 1781, as the same may be enacted, adopted or amended from time to time, and/or any other provision of law. To the extent applicable, City will enforce all penalties required by law for Contractor’s failure to pay prevailing wages. b. California Labor Code. The Contractor’s attention is directed to Division 2, Part 7, Chapter 1 of the California Labor Code and especially to Article 2 (Wages); and Article 3 (Working Hours), thereof.
(i) In accordance with Sections 1773 and 1773.2 of the California Labor Code, City has found and determined the general prevailing rates of wages in the locality in which the public work is to be performed are those determined by the Director of Industrial Relations and available at https://www.dir.ca.gov/OPRL/2022-1/PWD/Southern.html. Copies of the prevailing rates of wages are maintained with City’s principal office and are available to any interested party on request. Contractor shall post a copy of the prevailing rate of per diem wages at each job site.
(ii) Contractor is aware of and will comply with the provisions of California Labor Code Section 1776, including the keeping of payroll records and furnishing certified copies thereof in accordance with said Section. Pursuant to California Labor Code Section 1771.4, Contractor must submit certified payroll records to the Labor Commissioner using the Department of Industrial Relations’ electronic certified payroll reporting (eCPR) system. (iii) Pursuant to California Labor Code Section 1810, it is stipulated hereby that eight (8) hours labor constitutes a legal day’s work hereunder. (iv) Pursuant to California Labor Code Section 1815, work performed by employees of contractors in excess of eight (8) hours per day, and 40 hours during any one 93 2512/026150-0001
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week, shall be permitted upon public work upon compensation for all hours worked in excess of eight (8) hours per day at not less than 1 ½ times the basic rate of pay. (v) Pursuant to California Labor Code Section 1813, it is stipulated hereby that Contractor shall, as a penalty to City, forfeit twenty-five dollars ($25) for each worker employed in the execution of this Agreement by Contractor or by any subcontractor hereunder for each calendar day during which such worker is required or permitted to work more than eight (8) hours in any one calendar day and forty (40) hours in any one (1) calendar week in violation of the provisions of Article 3 (commencing with Section 1810), Chapter 1, Part 7, Division 2 of the California Labor Code.
(vi) Contractor is aware of and will comply with the provisions of California Labor Code Sections 1777.5 and 1777.6 with respect to the employment of apprentices.
Pursuant to Section 1777.5 it is hereby stipulated that Contractor will be responsible for obtaining compliance therewith on the part of any and all sub-consultants or subcontractors employed by Contractor in connection with this Agreement.
(vii) Pursuant to California Labor Code Section 1775, it is hereby stipulated that Contractor shall, as a penalty to City, forfeit not more than two-hundred dollars ($200) for each calendar day, or portion thereof, for each worker paid less than the prevailing rates as determined by the Director of Industrial Relations for the work or craft in which the worker is employed for the Services by Contractor or any sub-consultant or subcontractor. c. Bidding Eligibility. Pursuant to California Labor Code Section 1771.1, no contractor or subcontractor (or consultant or subconsultant) may be listed on a bid proposal for a public works project unless registered with the Department of Industrial Relations. Pursuant to California Public Contract Code Section 6109, Contractor may not perform any Services hereunder with a subcontractor who is ineligible to perform the Services pursuant to Section 1777.1 or 1777.7 of the California Labor Code.
d. DIR Monitoring. Pursuant to California Labor Code Section 1771.4, Contractor is hereby notified that this project is subject to compliance monitoring and enforcement by the Department of Industrial Relations.
e. Indemnification Related to Prevailing Wages. Section 5, Indemnification, specifically encompasses Claims arising from or related to (i) the noncompliance by Contractor or any party performing the Services of any applicable local, state, and/or federal law, including, without limitation, any applicable federal and/or state labor laws (including, without limitation, the requirement to pay state prevailing wages and hire apprentices); (ii) the implementation of California Labor Code Sections 1726 and 1781, as the same may be amended from time to time, or any other similar law; and/or (iii) failure by Contractor or any party performing the Services to provide any required disclosure or identification as required by California Labor Code Section 1781, as the same may be amended from time to time, and/or any other similar law.
7.4 Licenses and Permits, Fees, and Assessments. Contractor represents, warrants, and covenants to City that Contractor and its employees, agents, and any subcontractors have all licenses, permits, qualifications, and approvals of whatsoever nature that are legally required to 94 2512/026150-0001
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practice their respective professions, and perform the Services. Contractor represents, warrants, and covenants to City that Contractor and its employees, agents, and subcontractors shall, at their sole cost and expense, keep in effect at all times during the term of this Agreement any licenses, permits, and approvals that are legally required to practice their respective professions, and perform the Services. In addition to the foregoing, Contractor and any subcontractors shall obtain and maintain during the term of this Agreement valid business licenses from City. Contractor shall have the sole obligation to pay for any fees, assessments, and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for Contractor’s performance of the Services, and shall indemnify, defend and hold harmless City, its officers, employees or agents of City, against any such fees, assessments, taxes, penalties or interest levied, assessed, or imposed against City hereunder.
7.5 Conflicts of Interest. Contractor represents, warrants, and covenants that Contractor presently has no interest, direct or indirect, which would interfere with or impair in any manner or degree the performance of Contractor’s obligations and responsibilities under this Agreement. Contractor further agrees that while this Agreement is in effect, Contractor shall not acquire or otherwise obtain any interest, direct or indirect, that would interfere with or impair in any manner or degree the performance of Contractor’s obligations and responsibilities under this Agreement.
7.6 Unfair Business Practices Claims. In entering into this Agreement, Contractor offers and agrees to assign to City all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. § 15) or under the Cartwright Act (Chapter 2, (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, services, or materials related to this Agreement. This assignment shall be made and become effective at the time City renders final payment to Contractor without further acknowledgment of the Parties.
7.7 Annual Appropriation of Funding. In accord with Article 16 Section 18 of the California Constitution, payment of compensation under this Agreement is contingent upon annual appropriation of funds by City for that purpose. Contractor acknowledges and agrees that to the extent that the Services extend beyond one (1) fiscal year, payment for such Services is expressly conditioned on City’s annual appropriation of funds for such Services for each year. If no funds are appropriated then this Agreement shall be terminated. City pledges and agrees to process such appropriation requests annually and in good faith. Nothing in this Subsection shall be construed to limit the right of either Party to terminate this Agreement as provided herein.
7.8 Liquidated Damages. Since the determination of actual damages for any delay in performance of this Agreement would be extremely difficult or impractical to determine in the event of a breach of this Agreement, Contractor and its sureties shall be liable for and shall pay to City the sum of FIVE HUNDRED DOLLARS ($500.00) as liquidated damages for each working day of delay in the performance of any of the Services. City may withhold from any monies payable on account of the Services performed by Contractor any accrued liquidated damages. 95 2512/026150-0001
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SECTION 8. TERMINATION AND MODIFICATION.
8.1 Termination. City may terminate this Agreement at any time and without cause upon thirty (30) days’ written notification to Contractor. City may also terminate this Agreement pursuant to Subsection 8.8.
8.2 Termination by Contractor. Contractor may terminate this Agreement upon sixty (60) days’ written notice to City.
8.3 Consequences of Termination. In the event of termination, Contractor shall be entitled to compensation for the Services satisfactorily performed up to the date of termination; City, however, may condition payment of such compensation upon Contractor delivering to City any or all materials provided to Contractor or prepared by or for Contractor or City in connection with this Agreement. Upon receipt of any notice of termination, Contractor shall immediately cease all Services hereunder except such as may be specifically approved by the Contract Administrator.
8.4 Administrative Change Orders. City shall have the right at any time during the performance of the Services, without invalidating this Agreement, to order extra work beyond that specified in the Scope of Services or make changes by altering, adding to, or deducting from said work. No such extra work may be undertaken unless a written change order is first given by the Contract Administrator to Contractor, incorporating therein any adjustment in (i) the total compensation, and/or (ii) the time to perform this Agreement, which said adjustments are subject to the written approval of Contractor. Any increase in compensation of up to five percent (5%) of the total compensation or TWENTY-FIVE THOUSAND DOLLARS ($25,000), whichever is less; or in the time to perform of up to one hundred eighty (180) days may be approved in writing by the Contract Administrator. Contractor understands and agrees that, if City grants an extension in time without additional work, City shall have no obligation to provide Contractor with compensation beyond the maximum amount provided for in this Agreement. Similarly, unless authorized by the Contract Administrator, City shall have no obligation to reimburse Contractor for any otherwise reimbursable expenses incurred during the extension period. All other extensions or modifications to this Agreement shall require a written amendment pursuant to Subsection 8.5.
8.5 Amendments. The Parties may amend this Agreement only by a writing signed by all the Parties. The Contract Administrator shall have the authority to execute amendments to this Agreement which do not materially change the terms hereof, in the Contract Administrator’s discretion, to the extent permitted by applicable federal, state, and local law. The Contract Administrator may refer any proposed amendment to the City Council for review and approval.
8.6 Assignment and Subcontracting. City and Contractor recognize and agree that this Agreement contemplates personal performance by Contractor and is based upon a determination of Contractor’s unique personal competence, experience, and specialized personal knowledge.
Moreover, a substantial inducement to City for entering into this Agreement was and is the professional reputation and competence of Contractor. Contractor may not assign this Agreement or any interest therein without the prior written approval of the Contract Administrator. Contractor shall not subcontract any portion of the performance contemplated and provided for herein, other 96 2512/026150-0001
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than to the subcontractors noted in the Scope of Services, without prior written approval of the Contract Administrator. In the event of any unapproved assignment, including in connection with any bankruptcy proceeding, this Agreement shall be void. No approved assignment shall release Contractor or any surety of Contractor of any liability hereunder without the express consent of City.
8.7 Survival. All obligations arising prior to the expiration or termination of this Agreement and all provisions of this Agreement allocating liability between City and Contractor shall survive the expiration or termination of this Agreement.
8.8 Disputes, Default. In the event that Contractor is in default under the terms of this Agreement, City shall not have any obligation or duty to continue compensating Contractor for any of the Services performed after the date of default. Instead, City may give notice to Contractor of the default and the reasons for the default. The notice shall include the timeframe in which Contractor may cure the default. This timeframe is presumptively thirty (30) days, but may be extended, though not reduced, in the sole discretion of the Contract Administrator. During the period of time that Contractor is in default, City shall hold all invoices and shall, when the default is cured, proceed with payment on the invoices. In the alternative, City may, in its sole discretion, elect to pay some or all of the outstanding invoices during the period of default. If Contractor does not cure the default, City's remedies shall include, but not be limited to, any or all of the following:
a. Immediately terminate this Agreement;
b. Retain the plans, specifications, drawings, reports, design documents, and any other work product prepared by Contractor pursuant to this Agreement; c. Retain a different contractor to complete the Services; and/or d. Charge Contractor the difference between the cost to complete the Services that is unfinished at the time of breach and the amount that City would have paid Contractor pursuant to Section 2 if Contractor had completed the Services.
Any failure on the part of City to give notice of Contractor’s default shall not be deemed to result in a waiver of City’s legal rights or any rights arising out of any provision of this Agreement.
8.9 Claims by Contractor. Claims, as that term is defined in California Public Contract Code Section 9204, by Contractor and, where applicable, any subcontractor, in connection with a public works project shall by subject to the mediation procedure in California Public Contract Code Section 9204.
SECTION 9. KEEPING AND STATUS OF RECORDS.
9.1 Documents and Data. All drawings, specifications, maps, designs, photographs, studies, surveys, data, notes, computer files, reports, records, documents, and other materials plans, drawings, estimates, test data, survey results, models, renderings, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings, digital renderings, or data stored digitally, magnetically, or in any other medium (the 97 2512/026150-0001
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“Documents and Materials”) prepared or caused to be prepared by Contractor, its employees, subcontractors, and agents in the performance of this Agreement shall be the property of City and shall be delivered to City upon request of the Contract Administrator or upon the expiration or termination of this Agreement, and Contractor shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership use, reuse, or assignment of the Documents and Materials hereunder. Any use, reuse or assignment of such completed Documents and Materials for other projects and/or use of uncompleted documents without specific written authorization by Contractor will be at City’s sole risk and without liability to Contractor, and Contractor’s guarantee and warranties shall not extend to such use, revise, or assignment. Contractor may retain copies of such Documents and Materials for its own use.
Contractor shall have an unrestricted right to use the concepts embodied therein. All subcontractors shall provide for assignment to City of any Documents and Materials prepared by them, and in the event Contractor fails to secure such assignment, Contractor shall indemnify City for all damages resulting therefrom.
9.2 Licensing of Intellectual Property. This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, rights of reproduction, and other intellectual property embodied in the Documents and Materials.
Contractor shall require all subcontractors to agree in writing that City is granted a non-exclusive and perpetual license for the Documents and Materials the subcontractor prepares under this Agreement. Contractor represents and warrants that Contractor has the legal right to license any and all of the Documents and Materials. Contractor makes no such representation and warranty in regard to the Documents and Materials which were prepared by design professionals other than Contractor or provided to Contractor by City. City shall not be limited in any way in its use of the Documents and Materials at any time, provided that any such use not within the purposes intended by this Agreement shall be at City’s sole risk.
9.3 Records. Contractor shall keep, and require subcontractors to keep, such ledgers books of accounts, invoices, vouchers, canceled checks, reports (including but not limited to payroll reports), studies, or other documents relating to the disbursements charged to City and the Services performed hereunder (the “Books and Records”), as shall be necessary to perform the Services required by this Agreement and enable the Contract Administrator to evaluate the performance of such Services. Any and all such Books and Records shall be maintained in accordance with generally accepted accounting principles and shall be complete and detailed. The Contract Administrator shall have full and free access to such Books and Records at all times during normal business hours of City, including the right to inspect, copy, audit, and make records and transcripts from such Books and Records. Such Books and Records shall be maintained for a period of three (3) years following completion of the Services hereunder, and City shall have access to such Books and Records in the event any audit is required. In the event of dissolution of Contractor’s business, custody of the Books and Records may be given to City, and access shall be provided by Contractor’s successor in interest. Under California Government Code Section 8546.7, if the amount of public funds expended under this Agreement exceeds TEN THOUSAND DOLLARS ($10,000.00), this Agreement shall be subject to the examination and audit of the State Auditor, at the request of City or as part of any audit of City, for a period of three (3) years after final payment under this Agreement. 98 2512/026150-0001
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9.4 Reports. Contractor shall periodically prepare and submit to the Contract Administrator such reports concerning the performance of the Services required by this Agreement as the Contract Administrator shall require. Contractor hereby acknowledges that City is greatly concerned about the cost of the Services to be performed pursuant to this Agreement. For this reason, Contractor agrees that if Contractor becomes aware of any facts, circumstances, techniques, or events that may or will materially increase or decrease the cost of the Services contemplated herein or, if Contractor is providing design services, the cost of the project being designed, Contractor shall promptly notify the Contract Administrator of said fact, circumstance, technique, or event and the estimated increased or decreased cost related thereto and, if Contractor is providing design services, the estimated increased or decreased cost estimate for the project being designed.
9.5 Confidentiality. City and Contractor agree that, until final approval by City, all data, plans, specifications, reports, and other documents are confidential and will not be released to third parties without prior written consent of both Parties unless required by law. Contractor, its officers, employees, agents, or subcontractors, shall not, without prior written authorization from the Contract Administrator or unless requested by the City Attorney, voluntarily provide documents, declarations, letters of support, testimony at depositions, response to interrogatories, or other information concerning the work performed under this Agreement. If Contractor, or any officer, employee, agent, or subcontractor of Contractor, provides any information or work product in violation of this Agreement, then City shall have the right to reimbursement and indemnity from Contractor for any Claims caused by or incurred as a result of Contractor’s conduct. Contractor shall promptly notify City should Contractor, its officers, employees, agents, or subcontractors be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions, or other discovery request, court order, or subpoena from any party regarding this Agreement and the Services performed thereunder. City retains the right, but has no obligation, to represent Contractor or be present at any deposition, hearing, or similar proceeding. Contractor agrees to cooperate fully with City and to provide City with the opportunity to review any response to discovery requests provided by Contractor. However, this right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response. Response to a subpoena or court order shall not be considered a voluntary disclosure so long as Contractor gives City notice of such court order or subpoena as provided herein. Contractor understands and agrees that it may be required to provide documents to the City to be produced in response to a Public Records Act request.
SECTION 10. MISCELLANEOUS PROVISIONS.
10.1 Attorneys’ Fees. If either Party to this Agreement brings any action, including an action for declaratory relief, to enforce or interpret the provision of this Agreement, the prevailing Party shall be entitled to reasonable attorneys’ fees and expenses including costs, in addition to any other relief to which that Party may be entitled; provided, however, that the attorneys’ fees awarded pursuant to this Subsection shall not exceed the hourly rate paid by City for legal services multiplied by the reasonable number of hours spent by the prevailing Party in the conduct of the litigation. The court may set such fees in the same action or in a separate action brought for that purpose.
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10.2 Venue. In the event that either Party brings any action against the other under this Agreement, the Parties agree that trial of such action shall be vested exclusively in Riverside County.
10.3 Severability. If any provision of this Agreement is held invalid, the remainder of this Agreement shall not be affected thereby and all other parts of this Agreement shall nevertheless be in full force and effect.
10.4 Section Headings and Subheadings. The section headings and subheadings contained in this Agreement are included for convenience only and shall not limit or otherwise affect the terms of this Agreement.
10.5 No Implied Waiver of Breach. Waiver by any Party to this Agreement of any term, condition, or covenant of this Agreement shall not constitute a waiver of any other term, condition, or covenant. Waiver by any Party of any breach of the provisions of this Agreement shall not constitute a waiver of any other provision or a waiver of any subsequent breach or violation of any provision of this Agreement. Acceptance by City of any work or services by Contractor shall not constitute a waiver of any of the provisions of this Agreement. No delay or omission in the exercise of any right or remedy by a non-defaulting Party on any default shall impair such right or remedy or be construed as a waiver. Any waiver by either Party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement.
10.6 Successors and Assigns. The provisions of this Agreement shall inure to the benefit of and shall apply to and bind the successors and assigns of the Parties.
10.7 Contractor Principals and Representatives. The following principals of Contractor (“Principals”) are hereby designated as being the principals and representatives of Contractor authorized to act in its behalf with respect to the work specified herein and make all decisions in connection therewith:
(Name) (Title)
(Name) (Title)
(Name) (Title)
It is expressly understood that the experience, knowledge, capability, and reputation of the Principals were a substantial inducement for City to enter into this Agreement. Therefore, the Principals shall be responsible during the term of this Agreement for directing all activities of Contractor and devoting sufficient time to personally supervise the Services hereunder. All personnel of Contractor, and any authorized agents, shall at all times be under the exclusive direction and control of the Principals. For purposes of this Agreement, the Principals may not be replaced nor may their responsibilities be substantially reduced by Contractor without the express written approval of City.
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10.8 City Contract Administration. This Agreement shall be administered by a City employee, Gary Huang, Engineering Services Manager (“Contract Administrator”). All correspondence shall be directed to or through the Contract Administrator or his designee. It shall be Contractor’s responsibility to assure that the Contract Administrator is kept informed of the progress of the performance of the Services and Contractor shall refer any decisions which must be made by City to the Contract Administrator. Unless otherwise provided by applicable law, the Contract Administrator shall have the power to act on behalf of City for all purposes under this Agreement. Unless otherwise provided in this Agreement, Contractor shall not accept direction or orders from any person other than the Contract Administrator or his designee.
10.9 Notices. Any written notice to Contractor shall be sent to:
Sully-Miller Contracting, Co
Attn: Anthony Lino
135 S. State College Blvd., Suite 400
Brea, CA 92821
Any written notice to City shall be sent to the Contract Administrator at:
City of Adelanto
11600 Air Expressway
Adelanto, CA 92301
Attn: Gary Huang, Engineering Services Manager
with a copy to:
City Clerk
City of Adelanto
11600 Air Expressway
Adelanto, CA 92301
Any notice, demand, request, document, consent, approval, or communication either Party desires or is required to give to the other Party or any other person shall be in writing and either served personally or sent by prepaid, first-class mail. Either Party may change its address by notifying the other Party of the change of address in writing. Notice shall be deemed communicated at the time personally delivered or in seventy-two (72) hours from the time of mailing if mailed as provided in this Section.
10.10 Rights and Remedies. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the Parties are cumulative and the exercise by either Party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other Party.
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10.11 Integration, Interpretation. This Agreement, including Exhibit A, represents the entire and integrated agreement between City and Contractor and supersedes all prior negotiations, representations, or agreements, either written or oral. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either Party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply.
10.12 Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be an original and all of which together shall constitute one agreement.
10.13 Execution of Contract. The persons executing this Agreement on behalf of each of the Parties hereto represent and warrant that (i) such Party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said Party, (iii) by so executing this Agreement, such Party is formally bound to the provisions of this Agreement, and (iv) that entering into this Agreement does not violate any provision of any other agreement to which said Party is bound.
10.14 Nondiscrimination. Contractor covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that in the performance of this Agreement there shall be no discrimination against or segregation of, any person or group of persons on account of any impermissible classification including, but not limited to, race, color, creed, religion, sex, marital status, sexual orientation, national origin, or ancestry. Contractor shall take affirmative action to insure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, marital status, sexual orientation, national origin, or ancestry.
10.15 No Third Party Beneficiaries. There are no intended third-party beneficiaries under this Agreement and no such other third parties shall have any rights or obligations hereunder.
10.16 Nonliability of City Officers and Employees. No officer, official, employee, agent, representative, or volunteer of City shall be personally liable to Contractor, or any successor in interest, in the event of any default or breach by City or for any amount which may become due to Contractor or to its successor, or for breach of any obligation of the terms of this Agreement.
10.17 No Undue Influence. Contractor declares and warrants that no undue influence or pressure is used against or in concert with any officer or employee of City in connection with the award, terms or implementation of this Agreement, including any method of coercion, confidential financial arrangement, or financial inducement. No officer or employee of City shall receive compensation, directly or indirectly, from Contractor, or from any officer, employee, or agent of Contractor, in connection with the award of this Agreement or any work to be conducted as a result of this Agreement.
10.18 No Benefit to Arise to City Employees. No member, officer, or employee of City, or their designees or agents, and no public official who exercises authority over or has responsibilities with respect to this Agreement during his/her tenure or for one (1) year thereafter, shall have any interest, direct or indirect, in any agreement or sub-agreement, or the proceeds thereof, for the Services to be performed under this Agreement. 102
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[Signatures on Following Page]
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IN WITNESS WHEREOF, the Parties hereto have executed and entered into this Agreement as of the Effective Date.
CITY OF ADELANTO
Jessie Flores, City Manager
Attest:
Brenda Lopez, City Clerk
Approved as to Form:
Todd Litfin, City Attorney
CONTRACTOR
William J.T. Boyd, President
Jeff Galterio, Vice President
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EXHIBIT A
EXHIBIT A
SCOPE OF SERVICES
Services shall include Air Expressway Rehabilitation Project services, including labor, materials, services and equipment is the total amount of all lump sum items and of all unit price sums, determined by multiplying the unit price for each item times the actual quantity of each such item, in the amount not to exceed ONE MILLION, EIGHT HUNDRED AND NINTY-FIVE THOUSAND, EIGHT HUNDRED AND SEVENTY FIVE DOLLARS WITH ZERO CENTS ($1,895,875.00) as further detailed in the attached pages (if any). If the Services include Services pursuant to a request for proposals or bid, the Services shall include the work contemplated by the entire “Bid Package” or “Request for Proposals” for the Services, including all plans, addenda, documentation, and specifications attached thereto. A copy of the Bid Package and/or Request for Proposals, as applicable shall be retained with a copy of this Agreement. Contractor shall keep a copy of the same for at least three (3) years following termination of this Agreement. [ATTACH BID PACKAGE / SCOPE OF WORK]
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CITY COUNCIL AGENDA REPORT
A D E L A N T O G O V E R N M E N T A L C E N T E R | 1 1 6 0 0 A I R E X P R E S S W A Y | A D E L A N T O , C A L I F O R N I A 9 2 3 0 1
DATE: June 10, 2026
TO: Honorable Mayor and City Council Members
FROM: Jessie Flores, City Manager
SUBJECT: AMENDMENT NO. 1 TO PROFESSIONAL SERVICES AGREEMENT WITH BRN LLC FOR
WATER, SEWER, AND ENERGY RELATED CONSULTING SERVICES
STAFF RECOMMENDATION:
Staff recommends that the City Council:
1. Approve Amendment No. 1 to the Professional Services Agreement with BRN LLC for Water, Sewer, and Energy Related Consulting Services; and
2. Authorize the City Manager to execute Amendment No. 1 and any related documents necessary to implement the amendment.
BACKGROUND:
On June 2, 2025, the City entered into a Professional Services Agreement with BRN LLC to provide consulting services related to water, sewer, and energy projects. BRN LLC has assisted the city with a variety of utility-related initiatives, project coordination efforts, regulatory matters, and strategic planning activities involving the City’s water and wastewater systems. As the City continues to pursue utility infrastructure improvements and energy-related projects, additional consulting services are necessary to support ongoing and upcoming initiatives. Amendment No. 1 extends the term of the agreement for an additional one-year period beginning July 1, 2026, and ending June 30, 2027. The amendment also increases the compensation amount by Ninety-Six Thousand Dollars ($96,000) to allow BRN LLC to continue providing consulting services for water, sewer, and energy-related projects.
The amendment supplements the existing Scope of Services and is intended to augment the original scope of work rather than replace it. BRN LLC will continue to provide technical expertise, project coordination, strategic guidance, and support services related to the City's utility infrastructure and energy initiatives. Maintaining these services will assist the city in advancing key projects, identifying funding opportunities, and addressing regulatory and operational matters.
FISCAL IMPACT:
Approval of Amendment No. 1 will authorize compensation to BRN LLC in an amount not to exceed Ninety-Six Thousand Dollars ($96,000) for the period of July 1, 2026, through June 30, 2027. Funding for these services is included in the proposed Fiscal Year 2026-2027 budget. 106
ATTACHMENTS:
1. Amendment No. 1 to Professional Services Agreement with BRN LLC
2. Original Professional Services Agreement dated June 2, 2025 107
CITY OF ADELANTO
AMENDMENT No. 1 TO
Consulting Services for Water, Sewer and Energy Related Projects This is Amendment No. 1 (“Amendment No.1”) to that certain Professional Services AgreementBRN, LLC (“Agreement”) made on June 2, 2025, between the City of Adelanto (“City”) and BRNLLC (“Consultant/Contractor”), which this Amendment No. 1 is made and entered into on June 24, 2026, to increase the amount of compensation to sum not to exceed ($96,000).
1. Capitalized terms used but not defined in this Amendment No. 1 shall have the meanings ascribed to them in the Agreement.
Section 1.1, “Term of Services” is amended to read as follows:
1.1 Term of Services. The term of this Agreement shall begin on July 1, 2026, and shall end on June 30, 2027, unless the term of the Agreement is otherwise terminated or extended as provided for in Section 8. The time provided to BRN LLC to complete the services required by this Agreement shall not affect the City's right to terminate the Agreement, as provided for in Section 8.
SECTION 2, “Compensation” is amended to read as follows, increasing the contract amount by: NINETY-SIX THOUSAND DOLLARS (96,000).
SECTION 2. COMPENSATION.
City hereby agrees to pay BRN LLC a sum not to exceed NINETY-SIX THOUSAND DOOLARS ($96,000) notwithstanding any contrary indications that may be contained in BRN LLC’s proposal, for the Services to be performed and reimbursable costs incurred under this Agreement. In the event of a conflict between this Agreement and Exhibit A, regarding the amount of compensation, this Agreement shall prevail. City shall pay BRN LLC for the Services rendered pursuant to this Agreement at the time and in the manner set forth herein. The payments specified below shall be the only payments from City to BRN LLC for the Services rendered pursuant to this Agreement. Contractor shall submit all invoices to City in the manner specified herein. Except as specifically authorized in advance by City, BRN LLC shall not bill City for duplicate services performed by more than one person.
Exhibit A, “Scope of Services” is supplemented to include the supplement attached as Exhibit A hereto. The supplement to the “Scope of Services” is not intended to replace the 108
AMENDMENT NO. 1
original Exhibit A to the Agreement, but instead to augment and increase the scope of work listed in the original Exhibit A to the Agreement. The initial paragraph of the original Exhibit A, “Scope of Services”, to the Agreement is amended to read as follows:
EXHIBIT A
SCOPE OF SERVICES
Contractor shall provide Consulting Services for Water, Sewer and Energy Related Projects services in the amount not to exceed Ninety-Six Thousand Dollars ($96,000) as further detailed in the following page(s).
2. All other terms and conditions of the Agreement remain in full force and effect.
3. This Amendment No. 1 may be executed in multiple counterparts, each of which shall be an original and all of which together shall constitute one agreement. (Signatures on Following Page)
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AMENDMENT NO. 1
CITY OF ADELANTO
____________________________
Jessie Flores, City Manager
Attest:
____________________________
Brenda Lopez, City Clerk
Approved as to Form:
____________________________
Todd Litfin, City Attorney
CONSULTANT
______________________________
BRN LLC
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CITY COUNCIL AGENDA REPORT
A D E L A N T O G O V E R N M E N T A L C E N T E R | 1 1 6 0 0 A I R E X P R E S S W A Y | A D E L A N T O , C A L I F O R N I A 9 2 3 0 1
DATE: June 24, 2026
TO: Honorable Mayor and City Council Members
FROM: Jessie Flores, City Manager
BY: Jessie Flores, City Manager
SUBJECT: Approval of Third-Party Claims Administration Agreement between the City of Adelanto and Carl Warren & Company, LLC
STAFF RECOMMENDATION:
1. Approve the Third-Party Claims Administration Agreement between the City of Adelanto and Carl Warren & Company, LLC, effective July 1, 2026; and
2. Authorize the City Manager to execute the agreement and any related documents necessary to implement the services.
BACKGROUND:
The City of Adelanto participates in a self-insurance program for the administration and management of liability claims. To ensure professional and efficient handling of claims, the City contracts with a qualified third-party administrator (TPA) to provide claims administration, investigation, adjustment, and related services. The proposed agreement authorizes Carl Warren & Company, LLC to supervise and administer the City's self-insurance program and represent the City in matters related to the investigation, adjustment, processing, supervision, and resolution of liability claims asserted against the City.
Services to be provided under the agreement include, but are not limited to:
• Administration and supervision of the City's liability claims program. • Receipt, review, and examination of accident reports, incident reports, claims, and lawsuits. • Investigation of claims and incidents, including site inspections, witness interviews, evidence collection, and photographic documentation, when warranted. • Evaluation and adjustment of liability claims.
• Coordination with legal counsel and City staff regarding litigation and claim resolution. 132
• Maintenance of claim files and records.
• Preparation of reports and recommendations regarding claims handling and settlement authority. • Ongoing support to the City's risk management and self-insurance operations.
The agreement will provide the City with professional claims administration services necessary to efficiently manage liability exposures while ensuring compliance with applicable laws and industry best practices.
Carl Warren & Company, LLC is a recognized provider of third-party claims administration services and has extensive experience in the management of public agency liability claims and risk management programs.
FISCAL IMPACT:
The cost of services will be funded through the City's Risk Management and Insurance budget.
Sufficient funding has been included in the Fiscal Year 2026-2027 proposed budget. The agreement will help the City manage liability claims in a cost-effective and professional manner.
ATTACHMENTS:
Third-Party Claims Administration Agreement between the City of Adelanto and Carl Warren & Company, LLC. 133
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THIRD PARTY CLAIMS ADMINISTRATION CONTRACT
THIS AGREEMENT, effective July 1 2026 by and between CITY OF ADELANTO hereinafter called the “PRINCIPAL," and CARL WARREN & COMPANY, LLC, hereinafter called "CONTRACTOR," is for certain services as outlined in connection with the duties and responsibilities of administering a program of self-insurance.
W I T N E S S E T H
WHEREAS, PRINCIPAL has undertaken to administer the entitled matters and needs a qualified third party to whom to delegate the responsibilities and duties of administering said partially or totally funded program, and
WHEREAS CONTRACTOR is engaged in the supervision and administration of programs for commercial general liability self-insurance and infringement.
NOW, THEREFORE, PRINCIPAL and CONTRACTOR mutually understand and agree as follows:
1. GENERAL
CONTRACTOR shall:
(a) Supervise and administer the self-insurance program for PRINCIPAL:
(b) Represent the PRINCIPAL in all matters related to the investigation, adjustment, processing, supervision, and resolution of liability claims for money damages asserted by third parties against the PRINCIPAL (and other participants in the program as specified); and
(c) Provide to PRINCIPAL during the Term (as defined below) all the services more particularly set forth hereinafter.
2. INVESTIGATIVE SERVICES
CONTRACTOR shall provide complete investigative and analytical services including, but not limited to:
(a) Receipt and examination of all reports of accidents, incidents, claims or cases which are or may be the subject of such claims reported by PRINCIPAL to CONTRACTOR and.
(b) The investigation of such accidents, incidents, claims or cases where examination warrants such investigation or when requested by PRINCIPAL, such investigation to include on-site investigation, photographs, interviewing of witnesses, 134
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determination of losses and other such investigative services necessary to determine liability and loss.
3. SETTLEMENT AUTHORITY
CONTRACTOR shall promptly provide PRINCIPAL written notice of any claim which CONTRACTOR reasonably expects to result in a total settlement payment exceeding the settlement authority limit agreed upon by the Parties (the “Authority Limit”), excluding PRINCIPAL’s payments to CONTRACTOR for CONTRACTOR’s scope of services, and other costs and expenses agreed by the Parties to be reasonably related to CONTRACTOR’s services to PRINCIPAL. The Payment Guidelines incorporated into this Agreement are binding once this Agreement is executed by the Parties. The Payment Guidelines may be adjusted during the Term by mutual agreement of the Parties. Each mutually agreed upon revision of the Payment Guidelines, when executed by both Parties, shall be binding, and incorporated into this Agreement, superseding any antecedent versions of the Payment Guidelines.
Contractor Settlement Authority: $ per suffix.
4. CLAIMS ADJUSTMENT SERVICES
CONTRACTOR shall provide complete claims adjustment services on each accident or incident that may be the subject of a claim against the PRINCIPAL which is reported to CONTRACTOR by the PRINCIPAL. Such services shall include, but not be limited to:
(a) the maintenance of a claim file on each potential or actual claim reported to CONTRACTOR;
(b) whenever its investigation results in a determination that PRINCIPAL has sustained a liability to a third party, CONTRACTOR shall process any such claim or potential claim for settlement in accordance with the PRINCIPAL'S instructions for settlement of such claims, as set forth in the Payment Guidelines; and (c) obtaining all release agreements or proofs of loss on settlement of any claim or potential claim. If subrogation is pursued, the rates in Section 9 will apply unless a separate contingency fee agreement is agreed to by PRINCIPAL and CONTRACTOR.
5. ADMINISTRATIVE SERVICES
CONTRACTOR shall provide the following administrative services:
(a) Assignment of a Principal Account Adjuster to the PRINCIPAL; (b) Providing PRINCIPAL with electronic access to all reported claims during the term of this Agreement, indicating the status of each reported open claim assigned to CONTRACTOR, the details of each such claim, the outstanding reserves for each claim and details of all claim payments; and
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(c) Periodic review and adjusting of reserves on all open claims. Account specific reports and attendance at meetings (including round trip travel) shall be provided by CONTRACTOR at the rates provided in Section 9 under ancillary services.
6. LEGAL SUPPORT SERVICES
CONTRACTOR shall provide the following legal support services on each claim wherein the claimant has commenced litigation:
(a) Upon notification by PRINCIPAL that litigation has been filed on an open claim, CONTRACTOR shall notify PRINCIPAL and, in accordance with PRINCIPAL’S instructions, the PRINCIPAL'S excess insurance carrier and/or excess reporting authority, pool or group (the “excess entity”) and/or trial attorney assigned by PRINCIPAL to handle the case and provide such excess entity and/or trial attorney with all information and files concerning claim;
(b) Maintain liaison with PRINCIPAL'S excess entity and/or trial attorney and provide such investigation services as are required by such attorney during pre-trial and trial stages; and
(c) Assist PRINCIPAL'S excess entity and/or trial attorney with discovery and other legal processes.
7. SUBROGATION SERVICES
If the Fee Schedule in Section 9 shows that CONTRACTOR will be providing subrogation services, CONTRACTOR shall: Supervise and administer the subrogation program for PRINCIPAL, represent PRINCIPAL in all matters related to the investigation, collecting processing, supervision and resolution of subrogation claims, against third parties, for damage to PRINCIPAL’S property. This Agreement does not include recovery of damages or cost relating to Workers Compensation Claims, presented by PRINCIPAL’S employees.
CONTRACTOR shall provide complete collection services to PRINCIPAL, including receipt and examination of all reports of accident, incidents, claims or cases which are or may be the subject of a subrogation claim. The investigation of such accidents, incidents, claims or cases will include determining responsibility, establishing damage amount, pursuing collection, negotiating settlements and processing of monetary recovery.
8. TERM OF AGREEMENT
The term of the Agreement (the “Term”) shall commence on July 1, 2026 and continue until June 30, 2027 unless terminated earlier as provided in Section 13 herein. 136
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9. PRICING
PRINCIPAL agrees to pay the following claim handling and service fees for CONTRACTOR’S services:
CLAIMS ADMINISTRATION SERVICES FLAT RATE PER FEATURE PRICING 2026 - 2027
Bodily Injury Claims* $901.75 per feature*
Property Damage Claims: Data Entry only $258 per claim* Notes: *Bodily Injury Claims that enter litigation will incur a 50% Litigation Surcharge of the Flat Rate Fee.
Incident Report/Record Only $50 per report
Telephone
Included
Copy Work
Stenographs
Postage
Office Expense
Claims Set-Up Fee
Data Processing
Index Bureau – bodily injury only (ISO Claims Search &
OFAC) $20 per submission
MMSEA Filing Fee (liability claims) $5 per submission
Misc./Allocated Loss Adjustment Expenses (i.e. police reports, medical records, etc.) At Cost
Field Work Services
Adjuster Services – Other (small court, trials, mediations, travel, etc.) $97 per hour
Mileage IRS rate
Photographs/Duplicate Photographs Included
Ancillary Services
Subrogation (if utilized) 21% of net recovery
Outside Investigations
Auto/Property Damage Appraisals At Cost
Surveillance/Fraud Unit
Annual Administration Services
Data Management
Accounting Services
Annual Stewardship
Claims Review
Client Services
Quality Assurance
Trust Account Management
$6,000
Risk Management Information System Services
Setup (First Year) Included
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Training/Technical Support
Data Conversion(s)
3 Users RMIS Access
Standard Monthly Loss Runs
Report Programming
Carrier TPA Oversight (Data Extract, Feeds,
Audits, Compliance & Reporting)
Additional Users (over first 3 users) $250/user per year Custom Report Development (2+ hours) $250 per hour
Other IT Services (Exit, Final Termination etc.) $250 per hour Banking/Trust Account Services
Trust Account Maintenance
Check Issuance & Reconciliations Retain Earned Interest 1099 Reporting, including IRS File (if requested)
CONTRACTOR has the right to revise this fee schedule at no more frequently than one (1) year intervals. CONTRACTOR will provide a minimum of thirty (30) days prior notice of any such revision to the fee schedule to PRINCIPAL, which notice shall state the effective date of the revised fee schedule. Unless PRINCIPAL exercises its right to terminate this Agreement pursuant to Section 13(a) prior to the effective date of the revised fee schedule, such revised fee schedule shall govern for the remainder of the Term (or until further adjusted pursuant to this Section 9). If PRINCIPAL does exercise its right to terminate this Agreement pursuant to Section 9 during the period between receipt of any such revised fee schedule and the effective date of such revised fee schedule, the existing fee schedule (and not the revised schedule) shall govern for the remainder of the Term.
The above fee schedule for the services does not include “Allocated Expenses”, defined to mean customary and usual costs and expenses incurred and/or paid by CONTRACTOR on PRINCIPAL’S behalf in connection with the investigation, adjustment, settlement or defense of a claim. Such costs and expenses include, but are not limited to, professional photography, police reports, independent medical examinations, professional engineering services, laboratory services, bulk copy jobs, private investigators, legal costs and fees and work performed by accountants. CONTRACTOR shall charge PRINCIPAL for non-staff investigators or adjusters when, in the opinion of CONTRACTOR, such assistance is necessary and reasonably related to the monetary exposure. Allocated Expenses do not include the fees payable to CONTRACTOR pursuant to the fee schedule in this Section 9, nor the salaries, wages or benefits paid to CONTRACTOR’S employees or office and other overhead expenses associated with the performance of the services hereunder by CONTRACTOR. PRINCIPAL agrees to pay for the cost of all reasonable and supportable Allocated Expenses incurred in connection with the services under this Agreement.
Charges for non-file-related professional services performed at the specific request of PRINCIPAL will be billed on an as quoted basis.
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10. DATA PROCESSING
a. The following standard services are included in these services provided pursuant to this Agreement - claims data electronically for up to three recipients and access to FileHandler Enterprise for up to three users. For security purposes, access to FileHandler Enterprise and any subscriptions will automatically terminate at the end of twelve (12) months. PRINCIPAL shall be responsible for notifying CONTRACTOR to renew user subscriptions and access or to substitute users.
b. Additional users or recipients shall be charged on a per person basis at an annual fee of $250.
c. Special reports, new reports and data feeds can also be requested. They are subject to a cost per quote at a rate per project or per hour once the scope has been agreed upon. CONTRACTOR does not possess any interest, title, lien or right to any client data or records. Therefore, upon termination of the contract, CONTRACTOR is relieved of all obligations to provide data processing services to PRINCIPAL and will deliver to PRINCIPAL all data and records in a readily available excel or PDF format. If a different format is desired by PRINCIPAL, CONTRACTOR will provide it to PRINCIPAL at an agreed upon and reasonable cost and timeline.
11. PRINCIPAL'S RESPONSIBILITIES
PRINCIPAL shall provide CONTRACTOR with copies of all relevant documents upon request and without charge and shall make available any PRINCIPAL employee for interviews by CONTRACTOR at reasonable times concerning any investigation of a claim or incident pursuant to this Agreement.
CONTRACTOR shall bill PRINCIPAL and furnish PRINCIPAL with invoices for services rendered in accordance with the fee schedule set forth in the Agreement. Each invoice will include the claim or other matters for which a fee is being charged and the amount of the associated fee for that claim or matter. All sums due hereunder shall be paid by delivery of PRINCIPAL’S check, or wire transfer to CONTRACTOR’S offices located at the address set forth herein, within thirty (30) days following the invoice date. If any amount invoiced is in dispute, PRINCIPAL shall pay the undisputed amount and notify CONTRACTOR within thirty (30) days after the invoice date of the disputed portion; failure by PRINCIPAL to deliver written notice to CONTRACTOR of dispute with regard to any portion of an invoice within such time frame shall be deemed acceptance of the entire invoice by PRINCIPAL. Fees not paid in full within thirty (30) days of the invoice date (excluding any good faith disputed amount for which PRINCIPAL has delivered a written notice of dispute in accordance with this Section 11), at CONTRACTOR’S option, will be subject to per annum interest at the lower of (i) 18% or (ii) the maximum interest rate permitted by applicable law, calculated from the due date to the date payment is received by CONTRACTOR. For invoices not paid in full within thirty (30) days of the invoice date, CONTRACTOR will notify PRINCIPAL of such failure to pay and if PRINCIPAL does not cure such failure in full (excluding any good faith disputed amount for which PRINCIPAL has delivered a written notice of dispute in accordance with this Section 11) within ten (10) business days after the date of such notice (the “cure period”), CONTRACTOR may, without waiving any other rights or remedies to which it may be 139
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entitled, as of the first business day following the cure period, immediately limit access to data, suspend and/or terminate this Agreement, and/or seek collection of all amounts due, including by sending outstanding invoices to a collection agency. PRINCIPAL will reimburse any costs and expenses (including, but not limited to, the fees of a collection service and reasonable attorneys’ fees) incurred by CONTRACTOR to collect any amount that is not paid when due.
12. CONFLICT OF INTEREST
In the event a claim or incident is reported to CONTRACTOR by PRINCIPAL and it is determined that the actual or potential claimants therein are also clients of CONTRACTOR, then CONTRACTOR shall immediately notify PRINCIPAL of such potential conflict of interest so PRINCIPAL may have the option to choose an independent investigator and adjuster.
13. CANCELLATION OF AGREEMENT
a. Voluntary Termination. This Agreement may be terminated at any time by either party, without cause, by giving the other party not less than sixty (60) days prior written notice of such termination.
b. Termination for Cause. This Agreement shall terminate at the election of PRINCIPAL or CONTRACTOR if the other party breaches any material provision of this Agreement and fails to cure such breach within ten (10) business days after written notice thereof is given to the party, or in the event the breach is not capable of being cured within such ten (10) business day period, the breaching party has not commenced good faith efforts to cure such default within ten (10) business days and continued thereafter in good faith to diligently pursue the completion of such cure. Failure of PRINCIPAL to comply with Section 11PRINCIPAL’S RESPONSIBILITIES shall qualify as cause under this Section.
c. Termination by CONTRACTOR. CONTRACTOR may terminate this Agreement pursuant to Section 17(f).
14. DISPOSITION OF FILES ON TERMINATION OF AGREEMENT
a. All files on each claim shall be property of the PRINCIPAL. b. In the event of expiration of the Agreement, non-renewal thereof, or cancellation, CONTRACTOR shall bill the PRINCIPAL, subject to the rates quoted in Section 9 herein above, for work completed by CONTRACTOR on each claim. Upon receipt of payment of outstanding invoices (including those in Section 14(c) below), CONTRACTOR shall promptly forward all completed and pending claim files to the PRINCIPAL unless PRINCIPAL requests CONTRACTOR to continue to process any files on a time and expense basis as provided for in the CONTRACTOR'S Rate Manual at the time such services are rendered.
c. PRINCIPAL agrees to pay CONTRACTOR for the internal and/or external cost of retaining, storing, retrieving, logging, packing, and shipping files which are stored on or off premises by CONTRACTOR.
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15. HOLD HARMLESS
a. PRINCIPAL’S Indemnification Obligation. PRINCIPAL agrees it will indemnify, defend and hold harmless CONTRACTOR and its affiliates, and their respective officers, directors, employees, agents, attorneys, shareholders, and their successors and assigns (collectively “CONTRACTOR Indemnity”), from and against any loss, claim, damage, cost or expense, including but not limited to reasonable attorney’s fees and costs, that such CONTRACTOR Indemnity may incur arising out of, in connection with, or in any way related to the performance of CONTRACTOR’S duties and obligations under this Agreement except claims solely resulting from or arising out of:
(i) acts of CONTRACTOR performed in bad faith or failures to act occurring as a result of CONTRACTOR’S negligence resulting in a breach of CONTRACTOR’S duties and obligations under this Agreement; or
(ii) acts of CONTRACTOR which exceed the authority granted to it by PRINCIPAL under this Agreement; or
(iii) acts or failures to act of CONTRACTOR which are not in compliance with lawful written instructions issued by PRINCIPAL to CONTRACTOR provided such instructions are consistent with the scope, objectives and terms of this Agreement.
b. CONTRACTOR’S INDEMNIFICATION OBLIGATION. CONTRACTOR agrees it will indemnify, defend and hold harmless PRINCIPAL and its respective affiliates, and their respective officers, directors, employees, agents, attorneys, shareholders, and their successors and assigns (collectively “PRINCIPAL Indemnity”), from and against any loss, claim, damage, cost or expense, including but not limited to reasonable attorney’s fees and costs, that such PRINCIPAL Indemnity may incur solely resulting from or arising out of:
(i) acts of CONTRACTOR performed in bad faith or failures to act occurring as a result of CONTRACTOR’S negligence resulting in a breach of CONTRACTOR’S duties and obligations under this Agreement; or
(ii) acts of CONTRACTOR which exceed the authority granted to it by PRINCIPAL under this Agreement; or
(iii) acts or failures to act of CONTRACTOR which are not in compliance with lawful written instructions issued by PRINCIPAL to CONTRACTOR provided such instructions are consistent with the scope, objectives, and terms of this Agreement.
c. Limitations on CONTRACTOR’s Indemnity Obligations. CONTRACTOR’S indemnification obligations set forth in this Agreement shall apply only to the extent such obligations solely relate to or solely arise in connection with claims serviced by CONTRACTOR during the Term and under the scope of this Agreement. 141
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d. Survival of Obligations. The obligations of the parties set forth in this Section 15 shall survive termination of this Agreement.
16. AUDITS
The CONTRACTOR’S files shall be made available for audits at any time upon reasonable notice. Reasonable notice shall be defined as thirty (30) days or as otherwise agreed by the parties. If special retrieval or shipment of the requested files is necessary, PRINCIPAL shall reimburse CONTRACTOR at cost. The CONTRACTOR reserves the right to reject an auditor proposed by PRINCIPAL if the proposed auditor may gain an unfair competitive advantage over CONTRACTOR by conducting such an audit.
17. MISCELLANEOUS
a. Governing Law. This Agreement shall be construed and enforced in accordance with and governed by the laws of the State of California.
b. Amendments, etc. Neither this Agreement nor any of the terms hereof may be amended, changed, waived, discharged or terminated except by an instrument in writing signed by both of the parties hereto.
c. No Waiver. No delay on the part of any party hereto in exercising any right, power or privilege hereunder shall operate as a waiver thereof; nor shall any waiver on the part of any party hereto of any such right, power or privilege, or any single or partial exercise of any such right, power or privilege, preclude any further exercise thereof or the exercise of any other right, power or privilege.
d. Severability. If any part of this Agreement is contrary to, prohibited by or deemed invalid under, any applicable law of any jurisdiction, then such provision shall, as to such jurisdiction, be inapplicable and deemed omitted to the extent so contrary, prohibited or invalid, without invalidating the remainder hereof or affecting the validity or enforceability of such provision in any other jurisdiction. e. Independent Contractor. At all times during the term of this Agreement, CONTRACTOR shall be deemed to be an independent contractor to PRINCIPAL acting in the capacity as PRINCIPAL’S agent subject to the limited authority granted herein. Nothing contained in this Agreement shall be deemed to create the relationship of employer and employee, partners, or joint ventures between PRINCIPAL and CONTRACTOR. CONTRACTOR shall not act as an insurer, nor shall it be ultimately financially responsible for payment or satisfaction of Claims or causes of action against PRINCIPAL.
f. Current Law & Regulation. This Agreement is entered into with the understanding that existing Federal, State, or other jurisdictional regulations will remain in effect for the duration of this Agreement. PRINCIPAL agrees that should administrative or other costs of service provided hereunder be substantially increased as a result of modifications in existing law, enactment of new legislation, or promulgation of new administrative guidelines, CONTRACTOR service fees may be renegotiated during the Agreement term. If revised fee agreements cannot be reached, CONTRACTOR may terminate this Agreement, at its option, after thirty (30) days written notice to PRINCIPAL. 142
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g. Counterparts. This Agreement may be executed simultaneously in two counterparts, each of which when so executed and delivered shall be deemed an original, but both of which together shall constitute one and the same instrument, and all signatures need not appear on any one counterpart. A facsimile, telecopy or other reproduction of this Agreement may be executed by any party and delivered by such party by facsimile or other electronic transmission (including e-mail), and such execution and delivery shall be considered valid, binding and effective for all purposes.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed by their duly authorized representatives as of the day and year first written above. (CONTRACTOR) (PRINCIPAL)
Carl Warren & Company LLC City of Adelanto
Company Name Company Name
Signature Signature
Read Walden
Print Name Print Name
Head of TPA
Title Title
Date Date
ANY ALTERATIONS TO THIS CONTRACT WILL RENDER THE CONTRACT NULL AND VOID. THE PRICING QUOTED IN THIS CONTRACT WILL REMAIN EFFECTIVE FOR THIRTY (30) DAYS FROM
THE INCEPTION DATE LISTED ON THIS CONTRACT AFTER WHICH TIME THE CONTRACT WILL BE RECINDED.
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CITY COUNCIL
AGENDA REPORT
A D E L A N T O G O V E R N M E N T A L C E N T E R | 1 1 6 0 0 A I R E X P R E S S W A Y | A D E L A N T O , C A L I F O R N I A 9 2 3 0 1
DATE: June 24, 2026
TO: Honorable Mayor and City Council Members
FROM:
BY:
Jessie Flores, City Manager
Jessie Flores, City Manager
SUBJECT: ADOPTION OF RESOLUTION NO. 26-35 SUPPORTING THE RETENTION OF
OPPORTUNITY ZONE DESIGNATION FOR SELECT CENSUS TRACTS WITHIN THE
CITY OF ADELANTO
STAFF RECOMMENDATION:
Staff recommends that the City Council adopt Resolution No. 26-XX supporting the retention of Opportunity Zone designation for Census Tracts 06071009134, 06071009131, 06071009132, and 06071009125.
BACKGROUND:
The Opportunity Zone Program has been an important economic development tool for the City of Adelanto by helping support private investment, business attraction, housing development, and job creation in designated census tracts.
As the federal Opportunity Zone Program is expected to move into a new phase with updated eligibility and designation criteria, the City has identified Census Tracts 06071009134, 06071009131, 06071009132, and 06071009125 as priority areas for retention. These areas include key development sites that remain important to the City's long-term economic growth strategy.
Adoption of the proposed resolution would formally express the City Council's support for retaining Opportunity Zone designation for these census tracts and authorize staff to transmit the resolution to the appropriate State agencies for consideration.
ENVIRONMENTAL IMPACT:
There is no anticipated environmental impact associated with the adoption of this resolution.
FISCAL IMPACT:
There is no direct fiscal impact associated with the adoption of this resolution. 144
ATTACHMENT:
1. Resolution No. 26-35 Supporting the Retention of Opportunity Zone Designation for Census Tracts 06071009134, 06071009131, 06071009132, and 06071009125
2. Support Letters from the City Manager and major developers 145
Adelanto City Hall ~ 11600 Air Expressway, Adelanto, CA 92301 ~ (760) 246-2300 ~ Fax (442) 249-1121 Gabriel Reyes
Mayor
Daniel Ramos
Mayor Pro Tem
Stevevonna Evans
Council Member
Angelo Meza
Council Member
Amanda Uptergrove
Council Member
Jessie Flores
City Manager
June 16, 2026
The Honorable Gavin Newsom
Governor of California
1021 O Street, Suite 9000
Sacramento, CA 95814
Re: Request to Retain Opportunity Zone Designation for Four Census Tracts in the City of Adelanto Dear Governor Newsom:
The City of Adelanto respectfully submits this request for your consideration in connection with California’s nomination of census tracts for the next round of Opportunity Zone designations.
Specifically, the City requests that Census Tracts 06071009134, 06071009131, 06071009132, and 06071009125 be retained, or otherwise prioritized, for Opportunity Zone designation to preserve the momentum of private investment and economic revitalization that the program has helped generate within our community.
Although the City would prefer to retain Opportunity Zone designation for all four census tracts, the City recognizes that Census Tract 06071009125 is largely built out, with limited remaining developable land. Therefore, if the State must prioritize among the four tracts, the City would be willing to accept the removal of Census Tract 06071009125 from consideration, provided that Census Tracts 06071009134, 06071009131, and 06071009132 are retained or prioritized for Opportunity Zone designation.
Adelanto is a high-desert community in San Bernardino County encompassing approximately 55 square miles and serving a population of about 38,000 residents. Strategically located along U.S. Highway 395, a major north-south corridor that carries approximately 30,000 vehicles per day and connects the Canadian border to the San Diego border, the City is well positioned as an important logistics and industrial hub with strong potential for commercial, retail, and residential growth. At the same time, Adelanto continues to face longstanding structural and socioeconomic challenges, including limited Highway 395 access, power constraints, groundwater adjudication, endangered-species regulations, food desert conditions, and a longstanding property tax disadvantage. These issues are compounded by meaningful economic hardship, as Adelanto’s median household income remains below the statewide median, while poverty and unemployment remain elevated.
Since the enactment of the original Opportunity Zone program in 2018, the designation has served as an important business attraction and community development tool for Adelanto. The City has experienced measurable investment in commercial, residential, and industrial development that might otherwise have been delayed or diverted to other markets. • Commercial projects have included Stater Bros. Markets, multiple restaurants, gas stations, McDonald’s, and Starbucks, helping generate approximately $2.6 million in annual sales tax revenue. • Residential investment has also accelerated, with major homebuilders including D.R. Horton, Frontier Homes, K.
Hovnanian Homes, and KB Home constructing 763 housing units in Adelanto, with an additional 200 single-family residences underway. Notably, 320 housing units were built in Census Tract 91.24 alone, a tract that was included in the original Opportunity Zone designation but would no longer qualify under the revised criteria. These homes have an 146
Adelanto City Hall ~ 11600 Air Expressway, Adelanto, CA 92301 ~ (760) 246-2300 ~ Fax (442) 249-1121 average value of approximately $349,100, significantly below the statewide average of $734,700, making market-rate housing in this area comparatively affordable for some low-income residents. • Adelanto’s industrial district, now includes new industries such as o Cannabis cultivation which generates approximately $5.5 million annually in local excise tax revenue plus many more to the state.
o General Atomics provides 329 jobs in engineering, avionics, assembly, and mechanics, o GEO Group supports 246 jobs.
o Energy infrastructure-related investments include AES’s 200-megawatt solar generation and storage project on approximately 1,066 acres in the northwest area of the City. o Clark Pacific’s 110-acre manufacturing facility with 35 jobs. o Copart’s more than 100-acre vehicle auction presence in the City created over 100 jobs and continues to expand.
Looking ahead, Adelanto has continued to attract substantial industrial investment, particularly within Census Tracts 06071009134, 06071009131, 06071009132. These projects include:
• The CarMax Restoration Center, a vehicle auction and preparation facility on a 47-acre site with more than 150,000 square feet of building space;
• SteelWave LLC, a large logistics, distribution, and warehousing project planned on a 130-acre site with approximately
2.5 million square feet of industrial space adjacent to Southern California Logistics Airport; • Value Doors & Windows, a door and window manufacturing facility on a 20-acre site with more than 300,000 square feet of building area;
• and the Adelanto Gateway Logistics Center project, a major warehouse development consisting of seven warehouses totaling approximately 8.5 million square feet across 456.73 acres. • In addition, the AES project further highlights the strong development potential of Census Tract 06071009134 for future Solar energy generation, which is well positioned for growth aligned with the clean economic sector identified in the Statewide Economic Blueprint.
These projects represent substantial opportunities for job creation, tax revenue generation, and long-term economic growth.
Opportunity Zone status remains an important tool in helping such developments attract capital, improve site feasibility, and move toward construction.
Specifically, ad valorum improvements in OZ Census tracts included the following examples:
• Tax Rate Area 014000 in census tract 06071009131 shows improved values of $330,002,757 since the implementation of the OZ incentive, and represents 20 % of the total city assessed value. • Tax Rate Area 014002 in census tract 06071009134 shows improved values of $406,172,752 since the implementation of the OZ incentive, and represents 21% of the total city assessed value. • Tax Rate Area 014006 in census tract 06071009132 shows improved values of $48,256,484 since the implementation of the OZ incentive, and represents 4% of the total city assessed value.
The City is concerned that, under the revised definition of low-income communities in the One Big Beautiful Bill Act, Adelanto will experience a substantial reduction in eligible census tract area for the next round of Opportunity Zone designations. Based on the City’s analysis, the originally designated Opportunity Zone area in Adelanto covered approximately 46.05 square miles (Figure 1), while the census tracts currently meeting the revised eligibility criteria total only approximately 25.95 square miles (Figure 2), representing a reduction of roughly 43.6 percent. Such a contraction would significantly limit the City’s ability to continue using this program in the areas where it has already proven effective as a catalyst for investment. The maps below 147
Adelanto City Hall ~ 11600 Air Expressway, Adelanto, CA 92301 ~ (760) 246-2300 ~ Fax (442) 249-1121 illustrate the difference between Adelanto’s original Opportunity Zone footprint and the census tracts currently eligible under the revised criteria.
Figure 1. Original Opportunity Zone Map in Adelanto
The dots represent the locations of the
companies mentioned above.
Figure 2. Eligible Census Tracts for Opportunity
Zone Designation
Retaining Opportunity Zone designation for Census Tracts 06071009134, 06071009131, 06071009132, and 06071009125 would help preserve continuity for Adelanto’s ongoing development strategy. These tracts include areas where the City is actively seeking additional infill industrial expansion, and mixed-use growth. The City has already adopted a mixed-use overlay to increase residential and commercial density in the northeastern portion of the City, which will promote housing growth and economic development opportunities, and support more efficient multimodal land use patterns. Continued Opportunity Zone designation would complement these local planning efforts and help ensure that Adelanto can build on the progress already achieved.
For these reasons, the City of Adelanto respectfully requests that your office retain, or prioritize for nomination, Census Tracts 06071009134, 06071009131, 06071009132, and 06071009125 as Opportunity Zones. Continued designation of these tracts would advance the core goals of the Opportunity Zone program by directing capital to a community that continues to face real need while demonstrating a strong capacity to translate investment into housing production, job creation, and economic revitalization.
Thank you for your time and consideration of this request. The City would welcome the opportunity to provide any additional information that may assist your office in evaluating California’s nominations. Should you have any questions, please do not hesitate to contact our economic development team at [email protected], or reach out to me directly at 760-246- 2300 ext. 11184 or [email protected].
Respectfully submitted,
Jessie Flores
City Manager
City of Adelanto
148
Adelanto City Hall ~ 11600 Air Expressway, Adelanto, CA 92301 ~ (760) 246-2300 ~ Fax (442) 249-1121 Alignment with California Opportunity Zone Priorities
The following table summarizes how Adelanto's proposed Opportunity Zone census tracts align with California's economic development priorities:
Criteria 6071009134 6071009131 6071009132 6071009125
Advancing California
Jobs First / Statewide
Economic Blueprint
Meets – SteelWave logistics project and AES
solar/storage project supports the Inland SoCal Jobs
First priorities of advanced manufacturing, clean
technology, and industrial growth.
Meets – Value Doors & Windows
manufacturing facility and
Auburn Travel Center Projects
support advanced manufacturing
and job creation objectives
identified in the Inland SoCal Jobs
First Plan.
Meets – Adelanto Gateway
Logistics Center, supporting
regional industrial growth and
supply-chain infrastructure
consistent with the State Economic
Blueprint.
Attracting Private
Investment in
affordable housing
Moderately Meets –The proposed projects will
create over 200 jobs in the City and wil create
housing needs in the City. Adelanto’s median home
value is $349,100, which is significantly below the
statewide average of $734,700. Market-rate housing
in the city is comparatively affordable for some lowincome residents.
Moderately Meets –The
proposed projects will create
over 200 jobs in the City and wil
create housing needs in the City.
Adelanto’s median home value is
$349,100, which is significantly
below the statewide average of
$734,700. Market-rate housing in
the city is comparatively
affordable for some low-income
residents.
Moderately Meets –The proposed
projects will create over 100 jobs in
the City and wil create housing
needs in the City. Adelanto’s
median home value is $349,100,
which is significantly below the
statewide average of $734,700.
Market-rate housing in the city is
comparatively affordable for some
low-income residents.
Inclusion of "ShovelReady" Sites
Meets – SteelWave is an active entitled logistics
development adjacent to Southern California
Logistics Airport. The project consists of three
warehouses totaling approximately 3.13 million
square feet across two approved development
phases.
Meets – Value Doors & Windows
and Auburn Travel Center
projects are actively pursuing
development within the tract.
Meets – Adelanto Gateway
Logistics Center is an active project
expected to go to the Planning
Commission in September 2026.
The project proposes seven
warehouses totaling approximately
8.2 million square feet.
Public Investment
(Demonstrated or
Planned)
Meets
*The City spent $ 5M to install a 1.5-mile-high
pressure water pipeline along Adelanto Road to
supply water in an underserved area.
* The City will invest $50,000 in local funds to
rehabilitate El Mirage Road between Aster Road and
Highway 395.
Meets
* The City spent $ 5M to install a
1.5-mile-high pressure water
pipeline along Adelanto Road to
supply water in an underserved
area.
* EPA Grants: The City was
awarded $800,000 for
Wastewater Treatment Tertiary
Improvements and $1.7 million
for citywide water well
rehabilitation projects.
Meets
* The City secured $1.5 million
from the Department of
Recreation and Parks and $360,000
in CDBG funds to construct a new
park and playground facility.
* The City secured about $1 million
Highway Safety Improvement
Program (HSIP) grant, with a local
match of $100,000, to install traffic
signals at the Bellflower Street and
Rancho Road intersection.
* The City secured about $1.29
million in SBCTA funding,with a
local match of $2.2M, to
rehabilitate Air Expressway
between Raccoon Avenue and
Highway 395. ELIGIBLE FOR DESIGNATION, BUT THE CITY'S PRIORITIES ARE THE OTHER 3 CENSUS TRACTS THAT BETTER FIT WITH THE STATE BLUEPRINT 149
June 5, 2026
The Honorable Gavin Newsom
Governor of California
1021 O Street, Suite 9000
Sacramento, CA 95814
Re: Support for the Continued Opportunity Zone Designation of Census Tract 06071009131, City of Adelanto
Dear Governor Newsom,
My name is Ghassan Otaki, and I am the owner of Auburn Travel Center, LLC, the developer of a major mixed-use commercial project located within Census Tract 06071009131 in the City of Adelanto.
Our project represents a significant private investment that is expected to create more than 100 permanent jobs while generating substantial local and state tax revenue. The development will include essential services and businesses that will strengthen the local economy, attract additional investment, and provide long-term opportunities for residents and surrounding communities.
The Opportunity Zone designation has been a critical factor in making this project financially viable. It has encouraged investors to commit capital to an area that greatly benefits from economic development and job creation. Without this designation, projects such as ours face increased financing challenges, potentially delaying or preventing investments that would otherwise improve the community.
Continuing the Opportunity Zone designation for this census tract is not simply an incentive for developers— it is an investment in the future of Adelanto. It promotes private-sector growth without relying on public funding, creates quality employment opportunities, expands the local tax base, and encourages further development throughout the region.
I respectfully request your support for maintaining, or giving priority to the continuation of, the Opportunity Zone designation for Census Tract 06071009131. Preserving this designation will help ensure that projects like Auburn Travel Center can move forward and deliver lasting economic benefits to the City of Adelanto and the State of California.
Thank you for your time, consideration, and continued commitment to fostering economic growth and opportunity throughout our state.
Respectfully,
Ghassan Otaki
Owner
Auburn Travel Center, LLC
150
The Honorable Gavin Newsom
Governor of California
1021 O Street, Suite 9000
Sacramento, California 95814
June 9, 2026
Dear Governor Newsom:
My name is Dave Mileski, and I am President of Mileski Holdings, Inc and a private developer. Our company is currently pursuing the development of a seven building project totaling approximately 8,250,000 square feet of a logistics center project located within Census Tract 06071009132 (formerly included in Census Tract 06071009116) in the City of Adelanto, San Bernardino County.
The proposed development is expected to create over 1,650 full time jobs, substantial construction work, and generate meaningful fiscal and economic benefits for the City of Adelanto and the surrounding region through investment, employment opportunities, and increased economic activity.
Our company specifically selected this location in part because of the Opportunity Zone designation. The program has been an important factor in supporting investor interest, assisting with the capital raising process necessary to move the project forward, and enticing potential tenants. The Opportunity Zone designation provides critical confidence to investors considering long-term investment in economically challenged communities such as Adelanto.
Without the continued Opportunity Zone designation for this census tract, our project may face significant challenges in securing financing and may not be able to successfully move forward as currently planned.
For these reasons, I respectfully support the continued designation, or prioritization for designation, of Census Tract 06071009132 as an Opportunity Zone. Continued designation would help support private investment, job creation, and long-term economic revitalization within the City of Adelanto.
Thank you for your time and consideration.
Respectfully,
Dave Mileski
President, Mileski Holdings, Inc.
(310) 715-1300
[email protected]
151
June 9, 2026
The Honorable Gavin Newsom
Governor of California
1021 O Street, Suite 9000
Sacramento, CA 95814
Re: Support for Continued Opportunity Zone Designation in the City of Adelanto Dear Governor Newsom:
My name is Gregory Hall, and I am a Managing Director of SteelWave, a California real estate development company. Our firm is currently pursuing the development of an industrial logistics project located within Census Tract 06071009134 in the City of Adelanto.
The proposed development is expected to create hundreds of jobs and generate meaningful fiscal and economic benefits for the City of Adelanto and the surrounding region through investment, employment opportunities, and increased economic activity.
Our company specifically selected this location in part because of the Opportunity Zone designation. The program has been an important factor in supporting investor interest and assisting with the capital raising process necessary to move the project forward. The Opportunity Zone designation provides critical confidence to investors considering long-term investment in economically challenged communities such as Adelanto.
Without the continued Opportunity Zone designation for this census tract, our project may face significant challenges in securing financing and may not be able to successfully move forward as currently planned.
For these reasons, I respectfully support the continued designation, or prioritization for designation, of Census Tract 06071009134 as an Opportunity Zone. Continued designation would help support private investment, job creation, and long-term economic revitalization within the City of Adelanto.
Thank you for your time and consideration.
Respectfully,
Gregory Hall
Managing Director
SteelWave
310-745-4069
[email protected]
Digitally signed by: Gregory Hall
DN: CN = Gregory Hall email =
[email protected] C = US O = SteelWave Gregory HallDate: 2026.06.09 10:35:23 -07'00' 152
CITY COUNCIL AGENDA REPORT
A D E L A N T O G O V E R N M E N T A L C E N T E R | 1 1 6 0 0 A I R E X P R E S S W A Y | A D E L A N T O , C A L I F O R N I A 9 2 3 0 1
DATE: June 24, 2026
TO: Honorable Mayor and City Council Members
FROM: Diana Gunn, Finance Manager
SUBJECT: CONSIDERATION OF RESOLUTION 26-36 APPROVING ADOPTION OF CONTINUING RESOLUTION IN LIEU OF TIMELY FY 2026-2027 BUDGET ADOPTION AND AUTHORIZATION OF 30 DAYS EXTENSION TO PREPARE AND PRESENT THE FISCAL YEAR 2026-2027 BUDGET
STAFF RECOMMENDATION:
It is recommended that the City Council’s approval of a resolution to continue expenditures and revenues in accordance with the fiscal year 2025-2026 City budget in lieu of fiscal year 2026-2027 budget adoption (continuing resolution), and authorization of 30 days extension to prepare and present the fiscal year 2026-2027 budget.
SUMMARY:
The City is in the process of preparing the fiscal year 2026-2027 proposed City-wide budget. But due to staff turnover and other extenuating circumstances the proposed budget cannot be timely completed and presented to City Council by June 24, 2026.
If the City Council does not adopt a budget by June 30th, for the ensuing fiscal year, the City Council may adopt a continuing resolution to ensure that the City meets payroll and contractual obligations and continues to provide services.
Hence, staff recommends that the City Council adopt a continuing resolution, and grant staff 30 days extension to properly ready and present the fiscal year 2026-2027 budget.
DISCUSSION:
The City of Adelanto, like other similarly situated cities in the state, has experienced staffing shortages and turnover in key departments, as well as delays in audit catch-ups. These challenges have contributed to delays in the year-end close process and preparation of the proposed budget. The City is also actively working to complete prior-year audits and strengthen its overall financial management practices. 153
To assist in addressing these challenges, the City has retained Price Paige & Company to provide professional support with audit preparation, budget development, financial reporting, and finance operations. Price Paige & Company is also assisting the City with developing and updating financial and administrative policies, implementing internal control improvements, and addressing and rectifying prior years’ audit findings to enhance compliance and operational efficiency. The budget preparation process is currently underway, and staff, together with Price Paige & Company, are taking the necessary time to ensure that the City Council is presented with a complete, accurate, and high-quality budget document rather than one that is rushed solely to meet the June 30 deadline.
State law requires local agencies to submit an adopted budget, or a listing of anticipated revenues and expenditures, to the County Auditor within 60 days of the beginning of the fiscal year. If a budget is not adopted by July 1, the City Council may approve a continuing resolution, which allows the prior fiscal year's appropriations to remain in effect until the new budget is adopted. This ensures the City maintains legal authority to continue operations and expend funds while the budget process is completed.
FINANCIAL IMPACT:
Adoption of the continuing appropriation will enable the City to continue its operations and services and meet its financial obligations uninterrupted.
ALTERNATIVES:
As an alternative, the City Council may choose not to approve the continuing resolution. However, without an approved budget or continuing resolution, the City would lack the legal authority to expend funds. As a result, City operations would be significantly impacted, including the inability to process payroll, pay vendors, meet contractual obligations, or fund essential services until spending authority is established.
ATTACHMENTS:
1. City Resolution 26-36
154
RESOLUTION 26-36
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ADELANTO CONTINUING EXPENDITURES AND REVENUES IN ACCORDANCE WITH THE FISCAL YEAR 2025- 2026 CITY BUDGET IN LIEU OF FISCAL YEAR 2026-2027 BUDGET ADOPTION WHEREAS, the City Council duly passed the Fiscal Year 2025-2026 budget; and WHEREAS, adoption by the City Council of the Fiscal Year 2026-2027 operations budget and capital improvement budget will be delayed; and
WHEREAS, the City Council deems it appropriate to continue the operation of the City services until the passage of Fiscal Year 2026-2027 Budget.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ADELANTO DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The foregoing recitals are true and correct and incorporated herein by reference.
SECTION 2. The City Council does hereby continue the Fiscal Year 2025-2026 annual budget in full force and effect until the City Council adoption of the Fiscal Year 2026-2027 budget on or before July 31, 2026.
SECTION 3. Upon adoption of a resolution adopting the 2026-2027 Budget, this resolution shall have no further force and effect.
PASSED, APPROVED AND ADOPTED this 24th day of June 2026. ______________________________
Gabriel Reyes, Mayor
_______________________________
Brenda Lopez, City Clerk
155
Resolution 26-36
I, Brenda Lopez, City Clerk of the City of Adelanto, California, do hereby certify that the foregoing Resolution 26-36 was duly and regularly adopted at a regular meeting of the City Council of the City of Adelanto on this 24
th day of June 2026 be the following vote to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
IN WITNESS THEREOF, I hereunto set my hand and affix the official seal of the City of Adelanto on the 24th day of June 2026.
______________________________
Brenda Lopez, City Clerk
156
CITY COUNCIL AGENDA REPORT
A D E L A N T O G O V E R N M E N T A L C E N T E R | 1 1 6 0 0 A I R E X P R E S S W A Y | A D E L A N T O , C A L I F O R N I A 9 2 3 0 1
STAFF RECOMMENDATION:
Staff recommends that City Council review and ratify Warrant Demand Schedule 25/26-12-02
1. City of Adelanto Check Warrant No. 151922 through 151957 in the total amount of $2,189,976.85
2. City of Adelanto EFT No. 5547 through 5613 in the total amount of $2,980,373.69 BACKGROUND:
All payments have been reviewed in accordance with policies for processing payments and expenditures.
FISCAL IMPACT:
Summary of Payments issued:
Total Number of Payments: 103
Total Amount of Payments: $5,170,350.54
ATTACHMENTS:
1. Payment Check Register – Check No. 15922-through 151957
2. Payment EFT Register – EFT 5547 through 5613
DATE: June 24, 2026
TO: Honorable Mayor and City Council Members
FROM: Jessie Flores, City Manager
BY: Finance Department
SUBJECT: WARRANT DEMAND SCHEDULE 25/26-12-02
157
Payment Register
City of Adelanto
From Payment Date: 6/18/2025 - To Payment Date: 6/17/2026 Number Date Status Void Reason
Reconciled/
Voided Date Source Payee Name
Transaction
Amount
Reconciled
Amount Difference
04000013-01 - CITY OF ADELANTO GENERAL CHKG
Check
151930 06/11/2026 Open Utility Management
Refund
BARAJAS, ANGELITA $214.07
151931 06/11/2026 Open Utility Management
Refund
CLARK, MISTY $185.07
151932 06/11/2026 Open Utility Management
Refund
GONZALEZ, JESUS $116.12
151933 06/11/2026 Open Utility Management
Refund
HERNANDEZ, GABRIELA $65.90
151934 06/11/2026 Open Utility Management
Refund
LEE, ANGELA $240.46
151935 06/11/2026 Open Utility Management
Refund
NAVARRO, LLAMILET $146.28
151936 06/11/2026 Open Utility Management
Refund
OPTIMUM PROPERTY
MANAGEMENT
$234.19
151937 06/11/2026 Open Utility Management
Refund
PISHCHANETSKY, TATYANA or
YURIY
$53.68
151938 06/11/2026 Open Utility Management
Refund
POFF, MARIE $302.64
151939 06/11/2026 Open Utility Management
Refund
PRESHA, ARIEL $253.61
151940 06/11/2026 Open Utility Management
Refund
RYAN, WILLIAM $204.43
151941 06/11/2026 Open Utility Management
Refund
SALGADO ENRIQUEZ OR BLANCA
MOLINA MARTINEZ, JAIME
$323.65
151942 06/11/2026 Open Utility Management
Refund
SHAO, MING $271.26
151943 06/11/2026 Open Utility Management
Refund
STANDARD CONSTRUCTION 2 $66.66
151944 06/11/2026 Open Utility Management
Refund
SUAREZ, MARCO $200.83
151945 06/11/2026 Open Utility Management
Refund
TGF HOLDINGS LLC $298.64
151946 06/11/2026 Open Utility Management
Refund
TN AND CH LLC C/O CHUONG
HUYNH
$490.37
151947 06/11/2026 Open Utility Management
Refund
WARREN M MEYER & SON'S
CONSTRUCTION
$112.79
user: Diana Gunn Pages: 1 of 3 Wednesday, June 17, 2026 158
Payment Register
City of Adelanto
From Payment Date: 6/18/2025 - To Payment Date: 6/17/2026 Number Date Status Void Reason
Reconciled/
Voided Date Source Payee Name
Transaction
Amount
Reconciled
Amount Difference
151948 06/11/2026 Open Utility Management
Refund
YU, HERMAN $199.82
Type Check Totals: 19 Transactions $3,980.47
04000013-01 - CITY OF ADELANTO GENERAL CHKG Totals
Checks Status Count Transaction Amount Reconciled Amount Open 19 $3,980.47 $0.00
Reconciled 0 $0.00 $0.00
Voided 0 $0.00 $0.00
Stopped 0 $0.00 $0.00
Total 19 $3,980.47 $0.00
All Status Count Transaction Amount Reconciled Amount
Open 19 $3,980.47 $0.00
Reconciled 0 $0.00 $0.00
Voided 0 $0.00 $0.00
Stopped 0 $0.00 $0.00
Total 19 $3,980.47 $0.00
Flagstar AP - Accounts Payable
Check
151922 06/04/2026 Open Accounts Payable BISHOP, DEWAYNE $250.00 151923 06/04/2026 Open Accounts Payable BLUE BUILDERS, INC. $46,763.13 151924 06/04/2026 Open Accounts Payable FLORES, JESSIE $87.13 151925 06/04/2026 Open Accounts Payable HOVANNESIAN, KYLE $43.46 151926 06/04/2026 Open Accounts Payable JAMES C HIRSCH AICP, ASSOC AIA CORP
$28,000.00
151927 06/04/2026 Open Accounts Payable LOPEZ, BRENDA $124.93 151928 06/04/2026 Open Accounts Payable RAMOS, DANIEL $292.90 151929 06/04/2026 Open Accounts Payable RHRC1 $10,000.00 151949 06/11/2026 Open Accounts Payable MARY MANZO $1,724.70 151950 06/11/2026 Open Accounts Payable HARDY & HARPER, INC. AND BLUE
DIAMOND MATERIALS
$1,173,425.71
151951 06/15/2026 Open Accounts Payable HARDY & HARPER, INC. AND HIGRADE MATERIALS$29,335.00 151952 06/15/2026 Open Accounts Payable HARDY & HARPER, INC. AND VILLA
PARK LEASING CORP
$10,150.00
user: Diana Gunn Pages: 2 of 3 Wednesday, June 17, 2026 159
Payment Register
City of Adelanto
From Payment Date: 6/18/2025 - To Payment Date: 6/17/2026 Number Date Status Void Reason
Reconciled/
Voided Date Source Payee Name
Transaction
Amount
Reconciled
Amount Difference
151953 06/15/2026 Open Accounts Payable HARDY & HARPER, INC. AND INTERSTATE STRIPING, INC.
$68,500.00
151954 06/15/2026 Open Accounts Payable HARDY & HARPER, INC. AND
PAVEMENT RECYCLING SYSTEM
$61,417.50
151955 06/15/2026 Open Accounts Payable HARDY & HARPER, INC. AND THE
VANCE CORPORATION
$10,611.50
151956 06/15/2026 Open Accounts Payable HARDY & HARPER, INC. AND CASE LAND SURVEYING, INC.
$7,267.50
151957 06/15/2026 Open Accounts Payable HARDY & HARPER, INC. $738,002.92 Type Check Totals: 17 Transactions $2,185,996.38
Flagstar AP - Accounts Payable Totals
Checks Status Count Transaction Amount Reconciled Amount Open 17 $2,185,996.38 $0.00
Reconciled 0 $0.00 $0.00
Voided 0 $0.00 $0.00
Stopped 0 $0.00 $0.00
Total 17 $2,185,996.38 $0.00
All Status Count Transaction Amount Reconciled Amount
Open 17 $2,185,996.38 $0.00
Reconciled 0 $0.00 $0.00
Voided 0 $0.00 $0.00
Stopped 0 $0.00 $0.00
Total 17 $2,185,996.38 $0.00
Grand Totals:
Checks Status Count Transaction Amount Reconciled Amount Open 36 $2,189,976.85 $0.00
Reconciled 0 $0.00 $0.00
Voided 0 $0.00 $0.00
Stopped 0 $0.00 $0.00
Total 36 $2,189,976.85 $0.00
All Status Count Transaction Amount Reconciled Amount
Open 36 $2,189,976.85 $0.00
Reconciled 0 $0.00 $0.00
Voided 0 $0.00 $0.00
Stopped 0 $0.00 $0.00
Total 36 $2,189,976.85 $0.00
user: Diana Gunn Pages: 3 of 3 Wednesday, June 17, 2026 160
Payment Register
City of Adelanto
From Payment Date: 6/18/2025 - To Payment Date: 6/17/2026 Number Date Status Void Reason
Reconciled/
Voided Date Source Payee Name
Transaction
Amount
Reconciled
Amount Difference
Flagstar AP - Accounts Payable
EFT
5547 06/01/2026 Open Accounts Payable SOUTHERN CALIFORNIA EDISON $252.53 5548 06/01/2026 Open Accounts Payable SOUTHERN CALIFORNIA EDISON $53.89 5549 06/01/2026 Open Accounts Payable SOUTHERN CALIFORNIA EDISON $54.15 5550 06/04/2026 Reconciled 06/04/2026 Accounts Payable ADELANTO AUTO CARE & TIRES LLC
$2,861.19 $2,861.19 $0.00
5551 06/04/2026 Reconciled 06/04/2026 Accounts Payable AVCO DISPOSAL, INC. $3,101.82 $3,101.82 $0.00 5552 06/04/2026 Reconciled 06/04/2026 Accounts Payable BIG SKY ELECTRIC, INC $85,398.59 $85,398.59 $0.00 5553 06/04/2026 Reconciled 06/04/2026 Accounts Payable DAILY PRESS/DESERT DISPATCH $1,746.95 $1,746.95 $0.00 5554 06/04/2026 Reconciled 06/04/2026 Accounts Payable DEWEY PEST CONTROL, INC. $241.00 $241.00 $0.00 5555 06/04/2026 Reconciled 06/04/2026 Accounts Payable HDL COREN & CONE $6,100.00 $6,100.00 $0.00 5556 06/04/2026 Reconciled 06/04/2026 Accounts Payable HOBSEQUIO LLC $17,500.00 $17,500.00 $0.00 5557 06/04/2026 Reconciled 06/04/2026 Accounts Payable HOME DEPOT CREDIT SERVICES $274.17 $274.17 $0.00 5558 06/04/2026 Reconciled 06/04/2026 Accounts Payable JOSE ATILIO HERNANDEZ/IDEATE
CALIFORNIA
$10,500.00 $10,500.00 $0.00
5559 06/04/2026 Reconciled 06/04/2026 Accounts Payable KEC ENGINEERS, INC. $8,057.07 $8,057.07 $0.00 5560 06/04/2026 Reconciled 06/04/2026 Accounts Payable LOCAL EQUITY LLC $50,250.00 $50,250.00 $0.00 5561 06/04/2026 Reconciled 06/04/2026 Accounts Payable MAINSTREAM UNLIMITED LLC $867.00 $867.00 $0.00 5562 06/04/2026 Reconciled 06/04/2026 Accounts Payable MANUFACTURING ALL DREAMS
STUDIOS, ARLEY ARSINEDA
$10,000.00 $10,000.00 $0.00
5563 06/04/2026 Reconciled 06/04/2026 Accounts Payable PRICE PAIGE & COMPANY $44,923.00 $44,923.00 $0.00 5564 06/04/2026 Reconciled 06/04/2026 Accounts Payable QUESTYS $3,844.89 $3,844.89 $0.00 5565 06/04/2026 Reconciled 06/04/2026 Accounts Payable SAFEWAY SIGN CO $130.49 $130.49 $0.00 5566 06/04/2026 Reconciled 06/04/2026 Accounts Payable SAN BERNARDINO COUNTY
SHERIFF-CORONER DEPARTMENT
$2,090,904.00 $2,090,904.00 $0.00
5567 06/04/2026 Reconciled 06/04/2026 Accounts Payable STATE CONTROLLER
DEPARTMENTAL ACCOUNTING
OFFICE
$11.52 $11.52 $0.00
5568 06/04/2026 Reconciled 06/04/2026 Accounts Payable TYLER TECHNOLOGIES, INC. $54,132.73 $54,132.73 $0.00 5569 06/04/2026 Reconciled 06/04/2026 Accounts Payable WOODARD & CURRAN, INC. $262,200.37 $262,200.37 $0.00 5570 06/04/2026 Reconciled 06/04/2026 Accounts Payable ZIM INDUSTRIES, INC dba
BAKERSFIELD WELL & PUMP CO
$1,500.00 $1,500.00 $0.00
5571 06/04/2026 Reconciled 06/04/2026 Accounts Payable ZSE & ASSOCIATES $25,700.00 $25,700.00 $0.00 5572 06/08/2026 Open Accounts Payable SOUTHERN CALIFORNIA EDISON $4,047.12 5573 06/08/2026 Open Accounts Payable SOUTHERN CALIFORNIA EDISON $746.81 5574 06/05/2026 Open Accounts Payable HOME DEPOT CREDIT SERVICES $276.83 5575 06/05/2026 Open Accounts Payable HOME DEPOT CREDIT SERVICES $85.27 5576 06/05/2026 Open Accounts Payable HOME DEPOT CREDIT SERVICES $78.89 5577 06/05/2026 Open Accounts Payable HOME DEPOT CREDIT SERVICES $86.89 5578 06/10/2026 Open Accounts Payable CalPERS-PUBLIC EMPLOYEES
RETIREMENT SYSTEM
$37,175.17
5579 06/11/2026 Reconciled 06/11/2026 Accounts Payable ADELANTO AUTO CARE & TIRES LLC
$27.00 $27.00 $0.00
5580 06/11/2026 Reconciled 06/11/2026 Accounts Payable AQUA METRIC SALES $5,304.50 $5,304.50 $0.00 5581 06/11/2026 Reconciled 06/11/2026 Accounts Payable BANK UP CORPORATION $750.00 $750.00 $0.00 5582 06/11/2026 Reconciled 06/11/2026 Accounts Payable CINTAS CORP #150 $95.00 $95.00 $0.00 5583 06/11/2026 Reconciled 06/11/2026 Accounts Payable CLA-VAL $21,653.38 $21,653.38 $0.00 5584 06/11/2026 Reconciled 06/11/2026 Accounts Payable DATA NET SOLUTIONS GROUP, INC.
$24,750.50 $24,750.50 $0.00
5585 06/11/2026 Reconciled 06/11/2026 Accounts Payable DESERT VALLEY MEDICAL GROUP $150.00 $150.00 $0.00 user: Diana Gunn Pages: 1 of 3 Wednesday, June 17, 2026 161
Payment Register
City of Adelanto
From Payment Date: 6/18/2025 - To Payment Date: 6/17/2026 Number Date Status Void Reason
Reconciled/
Voided Date Source Payee Name
Transaction
Amount
Reconciled
Amount Difference
5586 06/11/2026 Reconciled 06/11/2026 Accounts Payable DSD-DISTRIBUTED SOLAR
DEVELOPMENT, LLC
$36,637.98 $36,637.98 $0.00
5587 06/11/2026 Reconciled 06/11/2026 Accounts Payable FERGUSON ENTERPRISES, INC. $76.32 $76.32 $0.00 5588 06/11/2026 Reconciled 06/11/2026 Accounts Payable HI DESERT ALARM $1,239.60 $1,239.60 $0.00 5589 06/11/2026 Reconciled 06/11/2026 Accounts Payable HIGH DESERT LASER GRAPHICS $143.55 $143.55 $0.00 5590 06/11/2026 Reconciled 06/11/2026 Accounts Payable ICR STAFFING SERVICES, INC. $2,448.05 $2,448.05 $0.00 5591 06/11/2026 Reconciled 06/11/2026 Accounts Payable INFOSEND $5,239.85 $5,239.85 $0.00 5592 06/11/2026 Reconciled 06/11/2026 Accounts Payable INFRASTRUCTURE ENGINEERS, A
BOWMAN COMPANY
$35,871.85 $35,871.85 $0.00
5593 06/11/2026 Reconciled 06/11/2026 Accounts Payable KEC ENGINEERS, INC. $19,580.00 $19,580.00 $0.00 5594 06/11/2026 Reconciled 06/11/2026 Accounts Payable LOCAL EQUITY LLC $24,500.00 $24,500.00 $0.00 5595 06/11/2026 Reconciled 06/11/2026 Accounts Payable MOBILE OCCUPATIONAL SERVICES, INC.
$100.00 $100.00 $0.00
5596 06/11/2026 Reconciled 06/11/2026 Accounts Payable MOJAVE WATER AGENCY $40,527.00 $40,527.00 $0.00 5597 06/11/2026 Reconciled 06/11/2026 Accounts Payable NAPA AUTO PARTS, INC. $65.23 $65.23 $0.00 5598 06/11/2026 Reconciled 06/11/2026 Accounts Payable PITNEY BOWES, INC. $512.11 $512.11 $0.00 5599 06/11/2026 Reconciled 06/11/2026 Accounts Payable POLITICAL DYNAMICS, LLC $4,500.00 $4,500.00 $0.00 5600 06/11/2026 Reconciled 06/11/2026 Accounts Payable POLYDYNE, INC. $8,872.14 $8,872.14 $0.00 5601 06/11/2026 Reconciled 06/11/2026 Accounts Payable RESTECX LLC $1,475.00 $1,475.00 $0.00 5602 06/11/2026 Reconciled 06/11/2026 Accounts Payable SAN BERNARDINO COUNTY
INNOVATION AND TECHNOLOGY
$177.87 $177.87 $0.00
5603 06/11/2026 Reconciled 06/11/2026 Accounts Payable SHRED-IT USA LLC $273.11 $273.11 $0.00 5604 06/11/2026 Reconciled 06/11/2026 Accounts Payable THE PUN GROUP LLP $10,000.00 $10,000.00 $0.00 5605 06/11/2026 Reconciled 06/11/2026 Accounts Payable UNDERGROUND SERVICE ALERT $310.69 $310.69 $0.00 5606 06/11/2026 Reconciled 06/11/2026 Accounts Payable VULCAN $1,258.56 $1,258.56 $0.00 5607 06/11/2026 Reconciled 06/11/2026 Accounts Payable WELLS FARGO FINANCIAL LEASING, INC.
$2,482.55 $2,482.55 $0.00
5608 06/11/2026 Reconciled 06/11/2026 Accounts Payable WESTLAND GROUP, INC. $3,770.00 $3,770.00 $0.00 5609 06/09/2026 Open Accounts Payable SOUTHERN CALIFORNIA EDISON $240.65 5610 06/09/2026 Open Accounts Payable SOUTHERN CALIFORNIA EDISON $298.91 5611 06/09/2026 Open Accounts Payable SOUTHERN CALIFORNIA EDISON $371.74 5612 06/09/2026 Open Accounts Payable SOUTHERN CALIFORNIA EDISON $3,034.29 5613 06/12/2026 Open Accounts Payable COLONIAL LIFE $533.92 Type EFT Totals: 67 Transactions $2,980,373.69 $2,933,036.63 $0.00 Flagstar AP - Accounts Payable Totals
EFTs Status Count Transaction Amount Reconciled Amount
Open 15 $47,337.06 $0.00
user: Diana Gunn Pages: 2 of 3 Wednesday, June 17, 2026 162
Payment Register
City of Adelanto
From Payment Date: 6/18/2025 - To Payment Date: 6/17/2026 Number Date Status Void Reason
Reconciled/
Voided Date Source Payee Name
Transaction
Amount
Reconciled
Amount Difference
Reconciled 52 $2,933,036.63 $2,933,036.63
Voided 0 $0.00 $0.00
Total 67 $2,980,373.69 $2,933,036.63
All Status Count Transaction Amount Reconciled Amount
Open 15 $47,337.06 $0.00
Reconciled 52 $2,933,036.63 $2,933,036.63
Voided 0 $0.00 $0.00
Stopped 0 $0.00 $0.00
Total 67 $2,980,373.69 $2,933,036.63
Grand Totals:
EFTs Status Count Transaction Amount Reconciled Amount
Open 15 $47,337.06 $0.00
Reconciled 52 $2,933,036.63 $2,933,036.63
Voided 0 $0.00 $0.00
Total 67 $2,980,373.69 $2,933,036.63
All Status Count Transaction Amount Reconciled Amount
Open 15 $47,337.06 $0.00
Reconciled 52 $2,933,036.63 $2,933,036.63
Voided 0 $0.00 $0.00
Stopped 0 $0.00 $0.00
Total 67 $2,980,373.69 $2,933,036.63
user: Diana Gunn Pages: 3 of 3 Wednesday, June 17, 2026 163
ADELANTO PUBLIC UTILITY AUTHORITY
A D E L A N T O G O V E R N M E N T A L C E N T E R | 1 1 6 0 0 A I R E X P R E S S W A Y | A D E L A N T O , C A L I F O R N I A 9 2 3 0 1
DATE: June 24, 2026
TO: Honorable Chairman and Public Utility Authority Members FROM: Jessie Flores, Executive Director
BY: Diana Gunn, Finance Manager
SUBJECT: CONSIDERATION OF RESOLUTION 26-03 APPROVING ADOPTION OF CONTINUING RESOLUTION IN LIEU OF TIMELY APUA FY 2026-2027 BUDGET FOR ADOPTION AND AUTHORIZATION OF 30 DAYS EXTENSION TO PREPARE AND PRESENT THE FISCAL YEAR 2026-2027 BUDGET
STAFF RECOMMENDATION:
It is recommended that the Adelanto Public Utility Authority (APUA) Board adopt a resolution to continue expenditures and revenues in accordance with the fiscal year 2025-2026 APUA budget in lieu of fiscal year 2026-2027 budget adoption (continuing resolution), and authorization of 30 days extension to prepare and present the fiscal year 2026-2027 budget.
BACKGROUND:
The City is in the process of preparing the fiscal year 2026-2027 proposed APUA budget. But due to staff turnover and other extenuating circumstances the proposed budget cannot be timely completed and presented to the APUA Board by June 24, 2026.
If the APUA Board does not adopt a budget by June 30th, for the ensuing fiscal year, the Board may adopt a continuing resolution to ensure that the Authority meets payroll and contractual obligations and continues to provide services.
Hence, staff recommends that the APUA Board adopt a continuing resolution, and grant staff 30 days extension to properly ready and present the fiscal year 2026-2027 budget.
FINANCIAL IMPACT:
Adoption of the continuing appropriation will enable APUA to continue its operations and services and meet its financial obligations uninterrupted.
ATTACHMENTS:
1. Resolution 26-03 – Authorization to Continue the Budget 164
RESOLUTION 26-03
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ADELANTO PUBLIC UTILITY
AUTHORITY (APUA) CONTINUING EXPENSES AND REVENUES IN ACCORDANCE WITH THE FISCAL YEAR 2025-2026 APUA BUDGET IN LIEU OF FISCAL YEAR 2026- 2027 BUDGET ADOPTION
WHEREAS, the APUA Board duly passed the Fiscal Year 2025-2026 budget; and WHEREAS, adoption by the APUA Fiscal Year 2026-2027 budget will be delayed; and WHEREAS, the APUA Board deems it appropriate to continue the operation of the APUA services until the passage of Fiscal Year 2026-2027 Budget.
NOW, THEREFORE, THE ADELANTO PUBLIC UTILITY AUTHORITY
BOARD OF DIRECTORS DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The foregoing recitals are true and correct and incorporated herein by reference.
SECTION 2. The APUA Board does hereby continue the Fiscal year 2025-2026 annual budget in full force and effect until the APUA Board adoption of the Fiscal Year 2026-2027 budget on or before July 31, 2026.
SECTION 3. Upon adoption of a resolution adopting the 2026-2027 Budget, this resolution shall have no further force and effect.
PASSED, APPROVED AND ADOPTED this 24th day of June 2026. ______________________________
Gabriel Reyes, President
_______________________________
Brenda Lopez, Secretary
165
Resolution 26-03
I, Brenda Lopez, APUA Secretary, do hereby certify that the foregoing Resolution 26-03 was duly and regularly adopted at a regular meeting of the APUA Board on this 24 th day of June
2026 be the following vote to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
IN WITNESS THEREOF, I hereunto set my hand and affix the official seal of the City of Adelanto on the 24th day of June, 2026.
______________________________
Brenda Lopez, CMC, Secretary
166
ADELANTO PUBLIC UTILITY AUTHORITY
A D E L A N T O G O V E R N M E N T A L C E N T E R | 1 1 6 0 0 A I R E X P R E S S W A Y | A D E L A N T O , C A L I F O R N I A 9 2 3 0 1
DATE: June 24th, 2026
TO: Honorable Chairman, and Public Utility Authority Members FROM: Jessie Flores, Executive Director
BY: Chris McMahon, Woodard and Curran
SUBJECT: Water Treatment Facility Filter Media Replacement STAFF RECOMMENDATION:
Staff recommend City Council approve the award of the contract agreement with Layne Christensen Company in the amount of $1,029,094 for the removal of the existing filter media and the installation of new filter media. at the city water treatment plant.
BACKGROUND:
The City’s water treatment facility uses multimedia filters to remove naturally occurring iron and manganese from the City’s groundwater supply. These filters are original to the facility and have been in continuous service since the plant was commissioned in the early 2000s.
Rehabilitation and replacement of the filter media will restore and improve filter performance, resulting in increased treatment capacity, greater filtration efficiency, and reduced long-term operational costs. Most importantly, this work will help ensure that treated water quality continues to meet regulatory standards and community expectations well into the future.
The water treatment plant was originally constructed by Layne Christensen Company, which has continued to support and maintain the proprietary treatment technology used at the facility. Replacing the filter media represents a prudent reinvestment in critical infrastructure that extends the useful life of the facility and supports reliable operations.
This project is an important step in maintaining the long-term health and efficiency of the City’s water treatment system and demonstrates the City of Adelanto’s ongoing commitment to protecting drinking water quality for residents, businesses, and future generations.
FISCAL IMPACT:
The project will utilize funds from the Water Enterprise Fund. There will be no impact to the City General Fund. 167
ATTACHMENTS:
1. Agreement
2. Project Estimate
3. Agreement Amendment
4. Certificate of Secretary
168
2512/026150-0001
19521958.1 a06/17/26
ADELANTO PUBLIC UTILITY AUTHORITY
CONTRACT SERVICES AGREEMENT
WTP Full Media Changeout
THIS CONTRACT SERVICES AGREEMENT (“Agreement”) is made and effective this _________ day of ___________, 2026 by and between the ADELANTO PUBLIC UTILITY AUTHORITY, (APUA) a California municipal corporation, (“City”) and Layne Christensen Company, a wholly-owned subsidiary of Granite Construction, Inc. (“Contractor”). City and Contractor are sometimes hereinafter individually referred to as “Party” and hereinafter collectively referred to as the “Parties”.
City sought, by issuance of a Request for Proposals or Invitation for Bids, for the performance of the services defined and described particularly in this Agreement. Contractor, following submission of a proposal or bid for the performance of the services defined and described particularly in this Agreement, was selected by City to perform those services. The Parties desire to formalize the selection of Contractor for performance of those services defined and described particularly in this Agreement and desire that the terms of that performance be as particularly defined and described herein.
SECTION 1. SERVICES.
1.1 Scope of Services. Subject to the terms and conditions set forth in this Agreement, Contractor shall provide to City the services described in the Scope of Services, attached hereto as Exhibit A, “Scope of Services” and incorporated herein by this reference (the “Services”).
Contractor will perform subsequent task orders as requested by the Contract Administrator (as defined below), in accordance with the Scope of Services. The Scope of Services incorporates Contractor’s scope of work or bid for the Services. In the event of a conflict in or inconsistency between the terms of this Agreement and Exhibit A, this Agreement shall prevail.
1.2 Term of Services. The term of this Agreement shall begin on _______. Unless earlier terminated in accordance with Section 8 of this Agreement, this Agreement shall continue in full force and effect until final written approval and acceptance of the work performed under this Agreement by the Contract Administrator. The time provided to Contractor to complete the Services required by this Agreement shall not affect City’s right to terminate this Agreement, as provided for in Section 8.
1.3 Standard of Performance.
a. Quality of Work. As a material inducement to City entering into this Agreement, Contractor represents and warrants that it has the qualifications, experience, and facilities necessary to properly perform the Services required under this Agreement in a thorough, competent, and professional manner, and is experienced in performing the Services contemplated herein. Contractor shall at all times faithfully, competently, and to the best of its ability, experience, and talent, perform all Services described herein. Contractor covenants that it shall follow the highest professional standards in performing the Services required hereunder and that all materials will be of good quality, fit for the purpose intended. For purposes of this Agreement, 169
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the phrase “highest professional standards” shall mean those standards of practice recognized by one or more first-class firms performing similar work under similar circumstances, and to the sole satisfaction of the Contract Administrator.
b. Care of Work. Contractor shall adopt reasonable methods during the term of this Agreement to furnish continuous protection to the Services, and the equipment, materials, papers, documents, plans, studies, and/or other components thereof to prevent losses or damages, and shall be responsible for all such damages, to persons or property, until acceptance of the Services by City, except such losses or damages as may be caused by City’s own negligence. c. Safety. Contractor shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out the Services, Contractor shall at all times be in compliance with all applicable local, state, and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions as applicable shall include, but shall not be limited to: (A) adequate life protection and life saving equipment and procedures; (B) instructions in accident prevention for all employees and subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures. d. Warranty. Contractor warrants all work under this Agreement (which for purposes of this Subsection 1.3 shall be deemed to include unauthorized work which has not been removed and any non-conforming materials incorporated into the work) to be of good quality and free from any defective or faulty material and workmanship. Contractor agrees that for a period of one (1) year (or the period of time specified elsewhere in this Agreement or in any guarantee or warranty provided by any manufacturer or supplier of equipment or materials incorporated into the work, whichever is later) after the date of final acceptance, Contractor shall within ten (10) days after being notified in writing by City of any defect in the work or non-conformance of the work to this Agreement, commence and prosecute with due diligence all work necessary to fulfill the terms of the warranty at Contractor’s sole cost and expense. Contractor shall act sooner as requested by City in response to an emergency. In addition, Contractor shall, at its sole cost and expense, repair and replace any portions of the work (or work of other contractors) damaged by Contractor’s defective work or which becomes damaged in the course of repairing or replacing defective work. For any work so corrected, Contractor’s obligation hereunder to correct defective work shall be reinstated for an additional one (1) year period, commencing with the date of acceptance of such corrected work. Contractor shall perform such tests as City may require to verify that any corrective actions, including, without limitation, redesign, repairs, and replacements comply with the requirements of this Agreement. All costs associated with such corrective actions and testing, including the removal, replacement, and reinstitution of equipment and materials necessary to gain access, shall be the sole responsibility of Contractor. All warranties and guarantees of subcontractors, suppliers, and manufacturers with respect to any portion of the work, whether express or implied, are deemed to be obtained by Contractor for the benefit of City, regardless of whether or not such warranties and guarantees have been transferred or assigned to City by separate agreement and Contractor agrees to enforce such warranties and guarantees, if necessary, on behalf of City. In the event that Contractor fails to perform its 170
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obligations under this Section, or under any other warranty or guaranty under this Agreement, to the reasonable satisfaction of City, City shall have the right to correct and replace any defective or non-conforming work and any work damaged by such work or the replacement or correction thereof at Contractor’s sole expense. Contractor shall be obligated to fully reimburse City for any expenses incurred hereunder upon demand.
e. Skilled and Trained Workforce. Contractor, for itself and its subcontractors at every tier, hereby provides an enforceable commitment to comply with California Public Contract Code section 2600 et seq., which requires use of a skilled and trained workforce to perform all work on the agreements that fall within an apprenticeable occupation in the building and construction trades.
f. Inspection and Final Acceptance. The Services shall be performed to the satisfaction of City. City may inspect and accept or reject any of Contractor’s work under this Agreement, during performance and/or when completed. City shall reject or finally accept Contractor’s work within forty five (45) days after submitted to City. City shall accept work by a timely written acceptance, otherwise work shall be deemed to have been rejected. City’s acceptance shall be conclusive as to such work except with respect to latent defects, fraud, and such gross mistakes as amount to fraud. Acceptance of any work by City shall not constitute a waiver of any of the provisions of this Agreement including, but not limited to, Section 4 and Section 5, pertaining to insurance and indemnification, respectively.
1.4 Assignment of Personnel. Contractor shall assign only competent personnel to perform the Services. Contractor shall make every reasonable effort to maintain the stability and continuity of Contractor’s staff and subcontractors, if any, assigned to perform the Services.
Contractor shall notify City of any changes in Contractor’s staff and subcontractors, if any, assigned to perform the Services, prior to and during any such performance. In the event that City, in its sole discretion, at any time during the term of this Agreement, desires the reassignment of any such persons, Contractor shall, immediately upon receiving notice from City of such desire of City, reassign such person or persons.
1.5 Time. Time is of the essence in the performance of this Agreement. Contractor shall devote such time to the performance of the Services pursuant to this Agreement as may be reasonably necessary to satisfy Contractor’s obligations hereunder. Contractor shall commence the Services pursuant to this Agreement upon receipt of a written notice to proceed and shall perform all Services within the time period(s) established in the Scope of Services. When requested by Contractor, extensions to the time period(s) specified in the Scope of Services may be approved in writing by the Contract Administrator but not shall not exceed one hundred eighty (180) days cumulatively.
1.6 Force Majeure. The time period(s) specified in the Scope of Services for performance of the Services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of Contractor, including, but not restricted to, acts of God or of the public enemy, unusually severe weather, fires, earthquakes, floods, epidemics, quarantine restrictions, riots, strikes, freight embargoes, wars, litigation, and/or acts of any governmental agency, including City, if Contractor shall within ten (10) days of the commencement of such delay notify the Contract Administrator 171
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in writing of the causes of the delay. The Contract Administrator shall ascertain the facts and the extent of delay, and extend the time for performing the Services for the period of the enforced delay when and if in the sole judgment of the Contract Administrator such delay is justified. The Contract Administrator’s determination shall be final and conclusive upon the Parties to this Agreement. In no event shall Contractor be entitled to recover damages against City for any delay in the performance of this Agreement, however caused, Contractor’s sole remedy being extension of this Agreement pursuant to this Section.
1.7 Suspension of Services. The City Engineer of City (“Engineer”) shall have the authority to suspend the Services, wholly or in part, for such period as the Engineer may deem necessary, due to unsuitable weather or to such other conditions as are considered unfavorable for the suitable prosecution of the Services, or for such time as the Engineer may deem necessary due to the failure on the part of Contractor to carry out orders given or to perform any provisions of the Services. Contractor shall immediately comply with the written order of the Engineer to suspend the Services wholly or in part and shall not resume the Services until ordered to do so in writing by the Engineer. Such suspension shall be without liability to Contractor on the part of City. In the event a suspension of work is ordered because of failure on the part of Contractor to carry out orders given or to perform any provisions of the Services, such suspension of the Services shall not relieve Contractor of responsibility to complete the Services within the time limit set forth herein and shall not be considered cause for extension of the time for completion and, further, such suspension of the Services shall not entitle Contractor to any additional compensation.
1.8 Familiarity with Work and Worksite. By executing this Agreement, Contractor warrants that Contractor (i) has thoroughly investigated and considered the Services, (ii) has carefully considered how the Services should be performed, and (iii) fully understands the facilities, difficulties, and restrictions attending performance of the Services. If the Services involve work upon any site, Contractor warrants that Contractor has or will investigate the site and is or will be fully acquainted with the conditions there existing, prior to commencement of the Services hereunder. Should Contractor discover any latent or unknown conditions, which will materially affect the performance of the Services hereunder, Contractor shall immediately inform City of such fact and shall not proceed until written instructions are received from the Contract Administrator.
1.9 Further Responsibilities of the Parties. Both Parties agree to use reasonable care and diligence to perform their respective obligations under this Agreement. Both Parties agree to act in good faith to execute all instruments, prepare all documents, and take all actions as may be reasonably necessary to carry out the purposes of this Agreement. Unless otherwise specified in this Agreement, neither Party shall be responsible for the service of the other.
SECTION 2. COMPENSATION.
2.1 Contract Amount. City hereby agrees to pay Contractor a sum not to exceed ONE
MILLION, TWENTY-NINE THOUSAND, AND NINETY-FOUR DOLLARS
($1,029,094.00) notwithstanding any contrary indications that may be contained in Contractor’s proposal or bid, for the Services to be performed and reimbursable costs incurred under this Agreement. This compensation may be administratively adjusted pursuant to Section 8.4 herein.
In the event of a conflict between this Agreement and Exhibit A, regarding the amount of 172
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compensation, this Agreement shall prevail. City shall pay Contractor for the Services rendered pursuant to this Agreement at the time and in the manner set forth herein. The payments specified in this Section 2 shall be the only payments from City to Contractor for the Services rendered pursuant to this Agreement. Contractor shall submit all invoices to City in the manner specified herein.
2.2 Method of Compensation. The method of compensation may include: (i) a lump sum payment upon completion, (ii) payment in accordance with specified tasks or the percentage of completion of the Services, (iii) payment for time and materials based upon Contractor’s rates as specified in the Scope of Services, provided that time estimates are provided for the performance of subtasks, or (iv) such other methods as may be specified in the Scope of Services. In no event shall compensation exceed the amount set forth in Subsection 2.1.
2.3 Invoices. Contractor shall submit invoices monthly during the term of this Agreement, based on the cost for the Services performed and reimbursable costs incurred prior to the invoice date. The invoice shall detail charges for all necessary and actual expenses by the following categories: labor (by sub-category), travel, materials, equipment, supplies, and subcontractor contracts. Subcontractor charges shall also be detailed by such categories. Invoices shall contain:
a. Serial identifications of progress bills; i.e., Progress Bill No. 1 for the first invoice, etc.;
b. The beginning and ending dates of the billing period; c. A “Task Summary” containing the original contract amount, the amount of prior billings, the total due this period, the balance available under this Agreement, and the percentage of completion;
d. At City’s option, for each item in each task, a copy of the applicable time entries or time sheets shall be submitted showing the name of the person performing the Services, the hours spent by each person, a brief description of the Services, and each reimbursable expense; e. The total number of hours of work performed under this Agreement by Contractor and each employee, agent, and subcontractor of Contractor performing the Services hereunder necessary to complete the Services described in Exhibit A; f. Receipts for expenses to be reimbursed;
g. The Principals’ signatures.
Invoices shall be submitted to:
ADELANTO PUBLIC UTILITY AUTHORITY
Attn: Accounts Payable
11600 Air Expressway
Adelanto, CA 92301
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2.4 City Payment of Invoices. City shall independently review each invoice submitted by Contractor to determine whether the work performed and expenses incurred are in compliance with the provisions of this Agreement. City will use its best efforts to cause Contractor to be paid within thirty (30) days of receipt of Contractor’s correct and undisputed invoice. In the event any charges or expenses are disputed by City, the original invoice shall be returned by City to Contractor for correction and resubmission. Pursuant to California Public Contract Code Section 20104.50, Contractor is notified that for public works Services, City’s failure to pay undisputed and properly submitted invoices within thirty (30) days shall be subject to interest at the legal rate set forth in Code of Civil Procedure Section 685.010. Any invoice for public works Services determined not to be a proper invoice suitable for payment shall be returned to the Contractor as soon as practicable, but not later than seven (7) days, after receipt. An invoice returned pursuant to the foregoing shall be accompanied by a writing stating the reasons why the invoice is not proper.
2.5 Retention of Funds, Final Payment.
a. Contractor hereby authorizes City, in the sole discretion of the Contract Administrator, to retain and deduct from any amount payable to Contractor not exceeding five percent (5%) of the total compensation The retained funds shall be paid to Contractor within sixty (60) days after final acceptance of the Services by the City and after Contractor has furnished City with full release of all undisputed payments under this Agreement. In the event there are any claims specifically excluded by Contractor from the operation of the release, City may retain proceeds of up to one hundred fifty percent (150%) of the amount in dispute. The failure of City to exercise such right to deduct or to withhold shall not, however, affect the obligations of Contractor to insure, indemnify, and protect City as provided in this Agreement. b. Notwithstanding Paragraph a, California Public Contract Code Section 22300 permits the substitution of securities for any retention monies withheld by City for public works Services. At the request and expense of Contractor, securities equivalent to the monies withheld shall be deposited with City, or with a state or federally chartered bank in California as the escrow agent, who shall then pay such monies to Contractor. City retains the sole discretion to approve the bank selected by Contractor to serve as escrow agent. Upon satisfactory completion of the Services, the securities shall be returned to Contractor. Securities eligible for investment shall include those listed in Government Code Section 16430. Contractor shall be the beneficial owner of any securities substituted for monies withheld and shall receive any interest thereon. In the alternative, under California Public Contract Code Section 22300, Contractor may request City to make payment of earned retention monies directly to the escrow agent at the expense of Contractor. Also at Contractor’s expense, Contractor may direct investment of the payments into securities, and Contractor shall receive interest earned on such investment upon the same conditions as provided for securities deposited by Contractor. Upon satisfactory completion of the Services, Contractor shall receive from the escrow agent all securities, interest and payments received by escrow agent from City pursuant to the terms of California Public Contract Code Section 22300.
2.6 Total Payment. City shall not pay any additional sum for any expense or cost whatsoever incurred by Contractor in rendering the Services pursuant to this Agreement. City shall make no payment for any extra, further, or additional service pursuant to this Agreement. In 174
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no event shall Contractor submit any invoice for an amount in excess of the maximum amount of compensation provided above either for a task or for the entirety of the Services performed pursuant to this Agreement, unless this Agreement is modified in writing prior to the submission of such an invoice.
2.7 Hourly Fees. Fees for the Services performed by Contractor on an hourly basis shall not exceed the amounts shown on Exhibit A.
2.8 Reimbursable Expenses. Reimbursable expenses are included within the maximum amount of this Agreement. Reimbursable expenses not listed in Exhibit A must be approved in advance by the Contract Administrator, in his or her sole discretion. Contractor shall not be entitled to any additional compensation for the attendance of meetings reasonably deemed necessary by City for the execution of the Services.
2.9 Payment of Taxes. Contractor is solely responsible for the payment of employment taxes incurred under this Agreement and any federal or state taxes.
2.10 Payment upon Termination. In the event that City or Contractor terminates this Agreement pursuant to Section 8, City shall compensate Contractor for all outstanding costs and reimbursable expenses incurred for Services satisfactorily completed and for reimbursable expenses as of the date of written notice of termination. Contractor shall maintain adequate logs and timesheets in order to verify costs and reimbursable expenses incurred to that date.
2.11 No Waiver. Payment to Contractor for Services performed pursuant to this Agreement shall not be deemed to waive any defects in work performed by Contractor.
SECTION 3. FACILITIES AND EQUIPMENT.
3.1 Contractor Provides Facilities and Equipment. Except as otherwise provided, Contractor shall, at its sole cost and expense, provide all facilities and equipment necessary to perform the services required by this Agreement. In no event shall City be required to furnish any facility or equipment that may involve incurring any direct expense.
3.2 Utility Relocation. Where applicable, pursuant to California Government Code Section 4215, City is responsible for removal, relocation, or protection of existing main or trunkline utilities to the extent such utilities were not identified in the invitation for bids or specifications. City shall reimburse Contractor for any costs incurred in locating, repairing damage not caused by Contractor, and removing or relocating such unidentified utility facilities.
Contractor shall not be assessed liquidated damages for delay arising from the removal or relocation of such unidentified utility facilities.
3.3 Trenches or Excavations. Pursuant to California Public Contract Code Sections 6705 and 7104, in the event the work included in this Agreement requires excavations more than four (4) feet in depth, the following shall apply.
a. Contractor shall promptly, and before the following conditions are disturbed, notify City, in writing, of any: (1) material that Contractor believes may be material that is hazardous waste, as defined in Section 25117 of the Health and Safety Code, that is required 175
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to be removed to a Class I, Class II, or Class III disposal site in accordance with provisions of existing law; (2) subsurface or latent physical conditions at the site different from those indicated by information about the site made available to bidders prior to the deadline for submitting bids; or (3) unknown physical conditions at the site of any unusual nature, different materially from those ordinarily encountered and generally recognized as inherent in work of the character provided for in this Agreement.
b. If the Services involve an estimated expenditure in excess of Twenty-Five Thousand Dollars ($25,000) for the excavation of any trench or trenches five (5) feet or more in depth, Contractor shall submit for acceptance by the City Engineer, in advance of excavation, a detailed plan showing the design of shoring, bracing, sloping, or other provisions to be made for worker protection from the hazard of caving ground during the excavation of such trench or trenches. If such plan varies from the shoring system standards, the plan shall be prepared by a registered civil or structural engineer.
c. City shall promptly investigate the conditions, and if it finds that the conditions do materially so differ, or do involve hazardous waste, and cause a decrease or increase in Contractor’s cost of, or the time required for, performance of any part of the work shall issue an order or amendment for additional services pursuant to Subsection 8.4 or 8.5 of this Agreement. d. If a dispute arises between City and Contractor whether the conditions materially differ, or involve hazardous waste, or cause a decrease or increase in Contractor’s cost of, or time required for, performance of any part of the work, Contractor shall not be excused from any scheduled completion date provided for by this Agreement, but shall proceed with all work to be performed under this Agreement. Contractor shall retain any and all rights provided either by contract or by law which pertain to the resolution of disputes and protests between the Parties.
SECTION 4. INSURANCE AND BOND REQUIREMENTS.
Before beginning any work under this Agreement, Contractor, at its own cost and expense, shall procure the types and amounts of insurance listed below and provide certified copies of insurance policies and original endorsements, indicating that Contractor has obtained or currently maintains insurance that meets the requirements of this Section and which is satisfactory, in all respects, to City. Contractor shall also deliver the payment and performance bonds required by this Section 4 with City. Contractor shall maintain the insurance policies required by this Section throughout the term of this Agreement. The cost of such insurance shall be included in Contractor’s compensation. Contractorshall not allow any subcontractor, Contractor or other agent to commence work on any subcontract until Contractor has obtained all insurance required herein for the subcontractor(s) and provided evidence thereof to City, and has delivered the required bonds to City. Verification of the required insurance shall be submitted and made part of this Agreement prior to execution. Contractor acknowledges the insurance policy must cover interinsured suits between City and other insureds. Contractor agrees that the requirement to provide insurance shall not be construed as limiting in any way the extent to which Contractor may be held responsible for the payment of damages to any persons or property resulting from Contractor’s activities or the activities of any person or persons for which Contractor is otherwise responsible nor shall it limit Contractor’s indemnification liabilities as provided in Section 5. Insurance or bonds required by this Agreement shall be satisfactory only if issued by companies qualified to do 176
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business in California, rated “A” or better in the most recent edition of Best Rating Guide, The Key Rating Guide, or in the Federal Register, and only if they are of a financial category Class VII or better, unless such requirements are waived by the Contract Administrator in the Contract Administrator’s sole discretion. If this Agreement continues for more than three (3) years duration, or in the event the Contract Administrator determines that the Services to be performed under this Agreement creates an increased or decreased risk of loss to City, Contractor agrees that the minimum limits of the insurance policies and the performance bond required by Section 4 may be changed accordingly upon receipt of written notice from the Contract Administrator; provided that Contractor shall have the right to appeal a determination of increased coverage by the Contract Administrator to the City Council of City within ten (10) days of receipt of notice from the Contract Administrator.
4.1 Workers’ Compensation. Contractor shall, at its sole cost and expense, maintain Statutory Workers’ Compensation Insurance and Employer’s Liability Insurance for any and all persons employed directly or indirectly by Contractor pursuant to the provisions of the California Labor Code. Statutory Workers’ Compensation Insurance and Employer’s Liability Insurance shall be provided with limits of not less than ONE MILLION DOLLARS ($1,000,000.00) per accident, ONE MILLION DOLLARS ($1,000,000.00) disease per employee, and ONE MILLION DOLLARS ($1,000,000.00) disease per policy. In the alternative, Contractor may rely on a selfinsurance program to meet those requirements, but only if the program of self-insurance complies fully with the provisions of the California Labor Code. Determination of whether a self-insurance program meets the standards of the California Labor Code shall be solely in the discretion of the Contract Administrator. The insurer, if insurance is provided, or Contractor, if a program of selfinsurance is provided, shall waive all rights of subrogation against City and its officers, officials, employees, and authorized volunteers for loss arising from the Services performed under this Agreement. Pursuant to California Labor Code Section 1860, Contractor is required to secure the payment of compensation to Contractor’s employees. Pursuant to California Labor Code Section 1861, Contractor hereby submits to City the following:
I am aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract.
Contractor Initial: _______
4.2 Commercial General and Automobile Liability Insurance. a. General Requirements. Contractor, at its own cost and expense, shall maintain commercial general and automobile liability insurance for the term of this Agreement in an amount not less than ONE MILLION DOLLARS ($1,000,000.00) per occurrence, combined single limit coverage, for risks associated with the Services contemplated by this Agreement, TWO MILLION DOLLARS ($2,000,000.00) general aggregate, and TWO MILLION DOLLARS ($2,000,000.00) products/completed operations aggregate. If a Commercial General Liability Insurance or an Automobile Liability Insurance form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the Services to be performed under this Agreement or the general aggregate limit shall be at least twice the 177
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required occurrence limit. Such coverage shall include but shall not be limited to, protection against claims arising from bodily and personal injury, including death resulting therefrom, and damage to property resulting from the Services contemplated under this Agreement, including the use of hired, owned, leased, and non-owned automobiles. b. Minimum Scope of Coverage. Commercial general coverage shall be at least as broad as Insurance Services Office Commercial General Liability occurrence form CG 0001. Automobile coverage shall be at least as broad as Insurance Services Office Automobile Liability form CA 0001 Code 2, 8, and 9 including “any auto” and endorsement CA 0025 or equivalent). No endorsement shall be attached limiting the coverage. c. Additional Requirements. Each of the following shall be included in the insurance coverage or added as a certified endorsement to the policy:
(i) The insurance shall cover on an occurrence or an accident basis, and not on a claims-made basis.
(ii) The policy must cover inter-insured suits and include a “Separation of Insureds” or “severability” clause which treats each insured separately. (iii) The insurance must be maintained for at least one (1) year following the completion of the Services or the expiration or termination of this Agreement. (iv) Any failure of Contractor to comply with reporting provisions of the policy shall not affect coverage provided to City and its officers, employees, agents, and volunteers.
4.3 Professional Liability Insurance.
a. General Requirements. Contractor, at its own expense, shall maintain professional liability insurance appropriate to Contractor’s profession. This coverage may be written on a “claims made” basis, and must include coverage for contractual liability. The professional liability insurance required by this Agreement must be endorsed to be applicable to claims based upon, arising out of, or related to the Services performed under this Agreement. The insurance must be maintained for at least five (5) consecutive years following the completion of the Services or the expiration or termination of this Agreement. During this additional five (5)- year period, Contractor shall annually and upon request of City submit written evidence of this continuous coverage.
b. Claims-Made Limitations. The following provisions shall apply if the professional liability coverage is written on a claims-made form:
(i) The retroactive date of the policy must be shown and must be no later than the commencement of the Services.
(ii) If coverage is canceled or not renewed and it is not replaced with another claims-made policy form with a retroactive date that precedes the Effective Date of this Agreement, Contractor must provide extended reporting coverage for a minimum of five (5) years 178
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after the expiration or termination of this Agreement or the completion of the Services. Such continuation coverage may be provided by one of the following: (1) renewal of the existing policy; (2) an extended reporting period endorsement; or (3) replacement insurance with a retroactive date no later than the commencement of the Services under this Agreement. City shall have the right to exercise, at Contractor’s sole cost and expense, any extended reporting provisions of the policy, if Contractor cancels or does not renew the coverage.
(iii) A copy of the claim reporting requirements must be submitted to City prior to the commencement of the Services under this Agreement.
4.4 Pollution Liability Insurance. Contractor, at its own expense, shall maintain pollution liability insurance written on a per occurrence for bodily injury, personal injury and property damage. The policy of insurance shall be in an amount not less than ONE MILLION DOLLARS ($1,000,000.00) per pollution incident and ONE MILLION DOLLARS ($1,000,000.00) in the general aggregate. The policy shall apply to any incidents at or from any location on which Contractor performs the Services under this Agreement. The insurance must be maintained for at least one (1) year following the completion of Contractor’s services or the expiration or termination of this Agreement.
4.5 All Policies Requirements.
a. Verification of Coverage. Prior to beginning the Services under this Agreement, Contractor shall furnish City with certificates of insurance, additional insured endorsement or policy language granting additional insured status complete certified copies of all policies, including complete certified copies of all endorsements. All copies of policies and certified endorsements shall show the signature of a person authorized by that insurer to bind coverage on its behalf. The certificate of insurance must include the following reference:
«Contract_Title». The name and address for additional insured endorsements, certificates of insurance and notice of cancellation is: ADELANTO PUBLIC UTILITY AUTHORITY, 11600 Air Expressway, Adelanto, CA 92301. City must be endorsed as an additional insured for liability arising out of ongoing and completed operations by or on behalf of Contractor. b. Notice of Reduction in or Cancellation of Coverage. Contractor shall provide written notice to City within ten (10) working days if: (1) any of the required insurance policies is terminated; (2) the limits of any of the required polices are reduced; or (3) the deductible or self insured retention is increased. In the event any of said policies of insurance are cancelled, Contractor shall, prior to the cancellation date, submit new evidence of insurance in conformance with this Section 4 to the Contract Administrator.
c. Additional Insured; Primary Insurance. City and its officers, employees, agents, and authorized volunteers shall be covered as additional insureds with respect to each of the following: liability arising out of the Services performed by or on behalf of Contractor, including the insured’s general supervision of Contractor; products and completed operations of Contractor, as applicable; premises owned, occupied, or used by Contractor; and automobiles owned, leased, or used by Contractor in the course of providing the Services pursuant to this Agreement. The coverage shall contain no special limitations on the scope of protection afforded to City or its officers, employees, agents, or authorized volunteers. The insurance provided to City 179
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as an additional insured must apply on a primary and non-contributory basis with respect to any insurance or self-insurance program maintained by City. Additional insured status shall continue for one (1) year after the expiration or termination of this Agreement or completion of the Services.
A certified endorsement must be attached to all policies stating that coverage is primary insurance with respect to City and its officers, officials, employees, and volunteers, and that no insurance or self-insurance maintained by City shall be called upon to contribute to a loss under the coverage. The insurer is deemed hereof to waive all rights of subrogation and contribution it may have against City, its officers, employees, agents, authorized volunteers, and their respective insurers.
d. Deductibles and Self-Insured Retentions. Contractor shall obtain the written approval of City for the self-insured retentions and deductibles before beginning any of the Services. During the term of this Agreement, only upon the prior express written authorization of the Contract Administrator, Contractor may increase such deductibles or self-insured retentions with respect to City, its officers, employees, agents, and volunteers. The Contract Administrator may condition approval of an increase in deductible or self-insured retention levels with a requirement that Contractor procure a bond guaranteeing payment of losses and related investigations, claim administration, and defense expenses that is satisfactory in all respects to each of them.
e. Subcontractors. Contractor shall include all subcontractors as insureds under its policies or shall furnish separate certificates and certified endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein.
f. Variation. The Contract Administrator may, but is not required to, approve in writing a variation in the foregoing insurance requirements, upon a determination that the coverage, scope, limits, and forms of such insurance are either not commercially available, or that City’s interests are otherwise fully protected.
4.6 Payment and Performance Bonds. Concurrently with execution of this Agreement, Contractor shall deliver to City a payment (labor and materials) bond and a performance bond, each in the sum of the amount of this Agreement, in the forms provided by the City Clerk, which secure the faithful performance of this Agreement. The bonds shall contain the original notarized signature of an authorized officer of the surety and affixed thereto shall be a certified and current copy of his power of attorney. The bonds shall be unconditional and remain in force during the entire term of this Agreement and shall be null and void only if Contractor promptly and faithfully performs all terms and conditions of this Agreement. Payment and performance bonds shall be secured from a surety company rated Grade “A” or better in the most recent edition of Best Rating Guide, The Key Rating Guide, or in the Federal Register, and only if they are of a financial category Class VII or better, unless such requirements are waived by the Contract Administrator due to unique circumstances, and shall be authorized to write such bonds in the State of California. Contractor shall pay all bond premiums, costs, and incidentals. Pursuant to California Public Contract Code Section 22300, substitution of eligible equivalent securities for any moneys withheld to ensure performance under this Agreement may be permitted at the request and expense of Contractor. Without limiting the foregoing, Contractor understands that Civil Code Section 180
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9550 requires a payment bond for all public works contracts involving an expenditure of more than Twenty-Five Thousand Dollars ($25,000).
4.7 Remedies. In addition to any other remedies at law or equity City may have if Contractor fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, City may, at its sole option, exercise any of the following remedies, which are alternatives to other remedies City may have and are not the exclusive remedy for Contractor’s breach:
a. Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under this Agreement; b. Order Contractor to stop work under this Agreement or withhold any payment that becomes due to Contractor hereunder, or both stop work and withhold any payment, until Contractor demonstrates compliance with the requirements hereof; and/or c. Terminate this Agreement.
SECTION 5. INDEMNIFICATION.
5.1 Indemnification for Professional Liability. Where the law establishes a professional standard of care for performance of the Services, to the fullest extent permitted by law, Contractor shall indemnify, protect, defend (with counsel selected by City), and hold harmless City and any and all of its officers, employees, officials, volunteers, and agents from and against any and all claims, losses, costs, damages, expenses, liabilities, liens, actions, causes of action (whether in tort, contract, under statute, at law, in equity, or otherwise) charges, awards, assessments, fines, or penalties of any kind (including costs and expenses incurred by City and reasonable consultant and expert fees and expenses of investigation, costs of whatever kind and nature and, if Contractor fails to provide a defense for City, the legal costs of counsel retained by City) and any judgment (collectively, “Claims”) to the extent same are caused in whole or in part by any negligent or wrongful act, error, or omission of Contractor, its officers, agents, employees, or subcontractors (or any entity or individual that Contractor shall bear the legal liability thereof) in the performance of professional services under this Agreement.
5.2 Indemnification for Other than Professional Liability. Other than in the performance of professional services and to the full extent permitted by law, Contractor shall indemnify, protect, defend (with counsel selected by City), and hold harmless City, and any and all of its officers, employees, officials, volunteers, and agents from and against any and all Claims, where the same arise out of, are a consequence of, or are in any way attributable to, in whole or in part, the performance of this Agreement by Contractor or by any individual or entity for which Contractor is legally liable, including but not limited to officers, agents, employees or subcontractors of Contractor. Contractor will promptly pay any judgment rendered against City, its officers, agents, or employees for any such Claims arising out of or in connection with the performance of or failure to perform such Services, operations or activities of Contractor hereunder.
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5.3 Subcontractors. Contractor shall incorporate similar indemnity agreements with its subcontractors. Contractor shall be fully responsible to indemnify City, and failure of City to monitor compliance with these provisions shall not be a waiver hereof.
5.4 Limitation of Indemnification. The provisions of this Section 5 do not apply to claims occurring as a result of City’s sole or active negligence. The provisions of this Section 5 shall not release City from liability arising from gross negligence or willful acts or omissions of City or any and all of its officers, officials, employees, and agents acting in an official capacity.
In the event any applicable law contains a limitation on indemnification under this Agreement, such limitation shall supersede the provisions herein only to the extent required by said law.
SECTION 6. INDEPENDENT CONTRACTOR.
At all times during the term of this Agreement, Contractor shall be an independent contractor and shall not be an employee of City. City shall have the right to control Contractor only insofar as the results of the Services rendered pursuant to this Agreement and assignment of personnel pursuant to Subsection 1.4; however, otherwise City shall not have the right to control the means by which Contractor accomplishes the Services rendered pursuant to this Agreement.
The personnel performing the Services under this Agreement on behalf of Contractor shall at all times be under Contractor’s exclusive direction and control. Contractor shall not at any time or in any manner represent that it is or any of its officers, employees, or agents are in any manner officers, officials, employees, or agents of City. Contractor shall not incur or have the power to incur any debt, obligation, or liability whatever against City, or bind City in any manner. Except for the fees paid to Contractor as provided in this Agreement, City shall not pay salaries, wages, or other compensation to Contractor for performing the Services hereunder for City. City shall not be liable for compensation or indemnification to Contractor for injury or sickness arising out of performing the Services hereunder. Notwithstanding any other City, state, or federal policy, rule, regulation, law, or ordinance to the contrary, Contractor and any of its employees, agents, and subcontractors providing services under this Agreement shall not qualify for or become entitled to any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in the California Public Employees Retirement System (“PERS”) as an employee of City and entitlement to any contribution to be paid by City for employer contributions and/or employee contributions for PERS benefits. Contractor shall perform all Services required herein as an independent contractor of City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role.
City shall not in any way or for any purpose become or be deemed to be a partner of Contractor in its business or otherwise or a joint venturer or a member of any joint enterprise with Contractor.
SECTION 7. LEGAL REQUIREMENTS.
7.1 Governing Law. The laws of the State of California shall govern this Agreement.
7.2 Compliance with Applicable Laws. Contractor and any subcontractor shall comply with all applicable local, state, and federal laws and regulations applicable to the performance of the work hereunder. Contractor shall not hire or employ any person to perform work within City or allow any person to perform the Services required under this Agreement unless such person is properly documented and legally entitled to be employed within the United States. Contractor 182
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acknowledges and agrees that it shall be independently responsible for reviewing the applicable laws and regulations and effectuating compliance with such laws. Contractor shall require the same of all subcontractors.
7.3 Prevailing Wages. Contractor acknowledges and agrees that it shall be independently responsible for reviewing the applicable prevailing wage laws and regulations and effectuating compliance with such laws, including, but not limited to the prevailing wage and related requirements set forth in this Subsection 7.3. Contractor shall bear all risks of payment or non-payment of prevailing wages under California law and/or the implementation of California Labor Code Section 1781, as the same may be amended from time to time, and/or any other similar law.
a. Public Work. Contractor hereby expressly acknowledges and agrees that City has never previously affirmatively represented to Contractor, its employees or agents in writing or otherwise that the Services are not a “public work,” as defined in Section 1720 of the California Labor Code. It is agreed by the Parties that, in connection with the development, construction (as defined by applicable law) and operation of the Services, including, without limitation, any public work (as defined by applicable law), if any, Contractor shall bear all risks of payment or non-payment of state and/or federal prevailing wages and/or the implementation of California Labor Code Sections 1726 and 1781, as the same may be enacted, adopted or amended from time to time, and/or any other provision of law. To the extent applicable, City will enforce all penalties required by law for Contractor’s failure to pay prevailing wages. b. California Labor Code. The Contractor’s attention is directed to Division 2, Part 7, Chapter 1 of the California Labor Code and especially to Article 2 (Wages); and Article 3 (Working Hours), thereof.
(i) In accordance with Sections 1773 and 1773.2 of the California Labor Code, City has found and determined the general prevailing rates of wages in the locality in which the public work is to be performed are those determined by the Director of Industrial Relations and available at https://www.dir.ca.gov/OPRL/2022-1/PWD/Southern.html. Copies of the prevailing rates of wages are maintained with City’s principal office and are available to any interested party on request. Contractor shall post a copy of the prevailing rate of per diem wages at each job site.
(ii) Contractor is aware of and will comply with the provisions of California Labor Code Section 1776, including the keeping of payroll records and furnishing certified copies thereof in accordance with said Section. Pursuant to California Labor Code Section 1771.4, Contractor must submit certified payroll records to the Labor Commissioner using the Department of Industrial Relations’ electronic certified payroll reporting (eCPR) system. (iii) Pursuant to California Labor Code Section 1810, it is stipulated hereby that eight (8) hours labor constitutes a legal day’s work hereunder. (iv) Pursuant to California Labor Code Section 1815, work performed by employees of contractors in excess of eight (8) hours per day, and 40 hours during any one 183
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week, shall be permitted upon public work upon compensation for all hours worked in excess of eight (8) hours per day at not less than 1 ½ times the basic rate of pay. (v) Pursuant to California Labor Code Section 1813, it is stipulated hereby that Contractor shall, as a penalty to City, forfeit twenty-five dollars ($25) for each worker employed in the execution of this Agreement by Contractor or by any subcontractor hereunder for each calendar day during which such worker is required or permitted to work more than eight (8) hours in any one calendar day and forty (40) hours in any one (1) calendar week in violation of the provisions of Article 3 (commencing with Section 1810), Chapter 1, Part 7, Division 2 of the California Labor Code.
(vi) Contractor is aware of and will comply with the provisions of California Labor Code Sections 1777.5 and 1777.6 with respect to the employment of apprentices.
Pursuant to Section 1777.5 it is hereby stipulated that Contractor will be responsible for obtaining compliance therewith on the part of any and all sub-consultants or subcontractors employed by Contractor in connection with this Agreement.
(vii) Pursuant to California Labor Code Section 1775, it is hereby stipulated that Contractor shall, as a penalty to City, forfeit not more than two-hundred dollars ($200) for each calendar day, or portion thereof, for each worker paid less than the prevailing rates as determined by the Director of Industrial Relations for the work or craft in which the worker is employed for the Services by Contractor or any sub-consultant or subcontractor. c. Bidding Eligibility. Pursuant to California Labor Code Section 1771.1, no contractor or subcontractor (or consultant or subconsultant) may be listed on a bid proposal for a public works project unless registered with the Department of Industrial Relations. Pursuant to California Public Contract Code Section 6109, Contractor may not perform any Services hereunder with a subcontractor who is ineligible to perform the Services pursuant to Section 1777.1 or 1777.7 of the California Labor Code.
d. DIR Monitoring. Pursuant to California Labor Code Section 1771.4, Contractor is hereby notified that this project is subject to compliance monitoring and enforcement by the Department of Industrial Relations.
e. Indemnification Related to Prevailing Wages. Section 5, Indemnification, specifically encompasses Claims arising from or related to (i) the noncompliance by Contractor or any party performing the Services of any applicable local, state, and/or federal law, including, without limitation, any applicable federal and/or state labor laws (including, without limitation, the requirement to pay state prevailing wages and hire apprentices); (ii) the implementation of California Labor Code Sections 1726 and 1781, as the same may be amended from time to time, or any other similar law; and/or (iii) failure by Contractor or any party performing the Services to provide any required disclosure or identification as required by California Labor Code Section 1781, as the same may be amended from time to time, and/or any other similar law.
7.4 Licenses and Permits, Fees, and Assessments. Contractor represents, warrants, and covenants to City that Contractor and its employees, agents, and any subcontractors have all licenses, permits, qualifications, and approvals of whatsoever nature that are legally required to 184
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practice their respective professions, and perform the Services. Contractor represents, warrants, and covenants to City that Contractor and its employees, agents, and subcontractors shall, at their sole cost and expense, keep in effect at all times during the term of this Agreement any licenses, permits, and approvals that are legally required to practice their respective professions, and perform the Services. In addition to the foregoing, Contractor and any subcontractors shall obtain and maintain during the term of this Agreement valid business licenses from City. Contractor shall have the sole obligation to pay for any fees, assessments, and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for Contractor’s performance of the Services, and shall indemnify, defend and hold harmless City, its officers, employees or agents of City, against any such fees, assessments, taxes, penalties or interest levied, assessed, or imposed against City hereunder.
7.5 Conflicts of Interest. Contractor represents, warrants, and covenants that Contractor presently has no interest, direct or indirect, which would interfere with or impair in any manner or degree the performance of Contractor’s obligations and responsibilities under this Agreement. Contractor further agrees that while this Agreement is in effect, Contractor shall not acquire or otherwise obtain any interest, direct or indirect, that would interfere with or impair in any manner or degree the performance of Contractor’s obligations and responsibilities under this Agreement.
7.6 Unfair Business Practices Claims. In entering into this Agreement, Contractor offers and agrees to assign to City all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. § 15) or under the Cartwright Act (Chapter 2, (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, services, or materials related to this Agreement. This assignment shall be made and become effective at the time City renders final payment to Contractor without further acknowledgment of the Parties.
7.7 Annual Appropriation of Funding. In accord with Article 16 Section 18 of the California Constitution, payment of compensation under this Agreement is contingent upon annual appropriation of funds by City for that purpose. Contractor acknowledges and agrees that to the extent that the Services extend beyond one (1) fiscal year, payment for such Services is expressly conditioned on City’s annual appropriation of funds for such Services for each year. If no funds are appropriated then this Agreement shall be terminated. City pledges and agrees to process such appropriation requests annually and in good faith. Nothing in this Subsection shall be construed to limit the right of either Party to terminate this Agreement as provided herein.
7.8 Liquidated Damages. Since the determination of actual damages for any delay in performance of this Agreement would be extremely difficult or impractical to determine in the event of a breach of this Agreement, Contractor and its sureties shall be liable for and shall pay to City the sum of FIVE HUNDRED DOLLARS ($500.00) as liquidated damages for each working day of delay in the performance of any of the Services. City may withhold from any monies payable on account of the Services performed by Contractor any accrued liquidated damages. 185
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SECTION 8. TERMINATION AND MODIFICATION.
8.1 Termination. City may terminate this Agreement at any time and without cause upon thirty (30) days’ written notification to Contractor. City may also terminate this Agreement pursuant to Subsection 8.8.
8.2 Termination by Contractor. Contractor may terminate this Agreement upon sixty (60) days’ written notice to City.
8.3 Consequences of Termination. In the event of termination, Contractor shall be entitled to compensation for the Services satisfactorily performed up to the date of termination; City, however, may condition payment of such compensation upon Contractor delivering to City any or all materials provided to Contractor or prepared by or for Contractor or City in connection with this Agreement. Upon receipt of any notice of termination, Contractor shall immediately cease all Services hereunder except such as may be specifically approved by the Contract Administrator.
8.4 Administrative Change Orders. City shall have the right at any time during the performance of the Services, without invalidating this Agreement, to order extra work beyond that specified in the Scope of Services or make changes by altering, adding to, or deducting from said work. No such extra work may be undertaken unless a written change order is first given by the Contract Administrator to Contractor, incorporating therein any adjustment in (i) the total compensation, and/or (ii) the time to perform this Agreement, which said adjustments are subject to the written approval of Contractor. Any increase in compensation of up to five percent (5%) of the total compensation or TWENTY-FIVE THOUSAND DOLLARS ($25,000), whichever is less; or in the time to perform of up to one hundred eighty (180) days may be approved in writing by the Contract Administrator. Contractor understands and agrees that, if City grants an extension in time without additional work, City shall have no obligation to provide Contractor with compensation beyond the maximum amount provided for in this Agreement. Similarly, unless authorized by the Contract Administrator, City shall have no obligation to reimburse Contractor for any otherwise reimbursable expenses incurred during the extension period. All other extensions or modifications to this Agreement shall require a written amendment pursuant to Subsection 8.5.
8.5 Amendments. The Parties may amend this Agreement only by a writing signed by all the Parties. The Contract Administrator shall have the authority to execute amendments to this Agreement which do not materially change the terms hereof, in the Contract Administrator’s discretion, to the extent permitted by applicable federal, state, and local law. The Contract Administrator may refer any proposed amendment to the City Council for review and approval.
8.6 Assignment and Subcontracting. City and Contractor recognize and agree that this Agreement contemplates personal performance by Contractor and is based upon a determination of Contractor’s unique personal competence, experience, and specialized personal knowledge.
Moreover, a substantial inducement to City for entering into this Agreement was and is the professional reputation and competence of Contractor. Contractor may not assign this Agreement or any interest therein without the prior written approval of the Contract Administrator. Contractor shall not subcontract any portion of the performance contemplated and provided for herein, other 186
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than to the subcontractors noted in the Scope of Services, without prior written approval of the Contract Administrator. In the event of any unapproved assignment, including in connection with any bankruptcy proceeding, this Agreement shall be void. No approved assignment shall release Contractor or any surety of Contractor of any liability hereunder without the express consent of City.
8.7 Survival. All obligations arising prior to the expiration or termination of this Agreement and all provisions of this Agreement allocating liability between City and Contractor shall survive the expiration or termination of this Agreement.
8.8 Disputes, Default. In the event that Contractor is in default under the terms of this Agreement, City shall not have any obligation or duty to continue compensating Contractor for any of the Services performed after the date of default. Instead, City may give notice to Contractor of the default and the reasons for the default. The notice shall include the timeframe in which Contractor may cure the default. This timeframe is presumptively thirty (30) days, but may be extended, though not reduced, in the sole discretion of the Contract Administrator. During the period of time that Contractor is in default, City shall hold all invoices and shall, when the default is cured, proceed with payment on the invoices. In the alternative, City may, in its sole discretion, elect to pay some or all of the outstanding invoices during the period of default. If Contractor does not cure the default, City's remedies shall include, but not be limited to, any or all of the following:
a. Immediately terminate this Agreement;
b. Retain the plans, specifications, drawings, reports, design documents, and any other work product prepared by Contractor pursuant to this Agreement; c. Retain a different contractor to complete the Services; and/or d. Charge Contractor the difference between the cost to complete the Services that is unfinished at the time of breach and the amount that City would have paid Contractor pursuant to Section 2 if Contractor had completed the Services.
Any failure on the part of City to give notice of Contractor’s default shall not be deemed to result in a waiver of City’s legal rights or any rights arising out of any provision of this Agreement.
8.9 Claims by Contractor. Claims, as that term is defined in California Public Contract Code Section 9204, by Contractor and, where applicable, any subcontractor, in connection with a public works project shall by subject to the mediation procedure in California Public Contract Code Section 9204.
SECTION 9. KEEPING AND STATUS OF RECORDS.
9.1 Documents and Data. All drawings, specifications, maps, designs, photographs, studies, surveys, data, notes, computer files, reports, records, documents, and other materials plans, drawings, estimates, test data, survey results, models, renderings, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings, digital renderings, or data stored digitally, magnetically, or in any other medium (the 187
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“Documents and Materials”) prepared or caused to be prepared by Contractor, its employees, subcontractors, and agents in the performance of this Agreement shall be the property of City and shall be delivered to City upon request of the Contract Administrator or upon the expiration or termination of this Agreement, and Contractor shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership use, reuse, or assignment of the Documents and Materials hereunder. Any use, reuse or assignment of such completed Documents and Materials for other projects and/or use of uncompleted documents without specific written authorization by Contractor will be at City’s sole risk and without liability to Contractor, and Contractor’s guarantee and warranties shall not extend to such use, revise, or assignment. Contractor may retain copies of such Documents and Materials for its own use.
Contractor shall have an unrestricted right to use the concepts embodied therein. All subcontractors shall provide for assignment to City of any Documents and Materials prepared by them, and in the event Contractor fails to secure such assignment, Contractor shall indemnify City for all damages resulting therefrom.
9.2 Licensing of Intellectual Property. This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, rights of reproduction, and other intellectual property embodied in the Documents and Materials.
Contractor shall require all subcontractors to agree in writing that City is granted a non-exclusive and perpetual license for the Documents and Materials the subcontractor prepares under this Agreement. Contractor represents and warrants that Contractor has the legal right to license any and all of the Documents and Materials. Contractor makes no such representation and warranty in regard to the Documents and Materials which were prepared by design professionals other than Contractor or provided to Contractor by City. City shall not be limited in any way in its use of the Documents and Materials at any time, provided that any such use not within the purposes intended by this Agreement shall be at City’s sole risk.
9.3 Records. Contractor shall keep, and require subcontractors to keep, such ledgers books of accounts, invoices, vouchers, canceled checks, reports (including but not limited to payroll reports), studies, or other documents relating to the disbursements charged to City and the Services performed hereunder (the “Books and Records”), as shall be necessary to perform the Services required by this Agreement and enable the Contract Administrator to evaluate the performance of such Services. Any and all such Books and Records shall be maintained in accordance with generally accepted accounting principles and shall be complete and detailed. The Contract Administrator shall have full and free access to such Books and Records at all times during normal business hours of City, including the right to inspect, copy, audit, and make records and transcripts from such Books and Records. Such Books and Records shall be maintained for a period of three (3) years following completion of the Services hereunder, and City shall have access to such Books and Records in the event any audit is required. In the event of dissolution of Contractor’s business, custody of the Books and Records may be given to City, and access shall be provided by Contractor’s successor in interest. Under California Government Code Section 8546.7, if the amount of public funds expended under this Agreement exceeds TEN THOUSAND DOLLARS ($10,000.00), this Agreement shall be subject to the examination and audit of the State Auditor, at the request of City or as part of any audit of City, for a period of three (3) years after final payment under this Agreement. 188
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9.4 Reports. Contractor shall periodically prepare and submit to the Contract Administrator such reports concerning the performance of the Services required by this Agreement as the Contract Administrator shall require. Contractor hereby acknowledges that City is greatly concerned about the cost of the Services to be performed pursuant to this Agreement. For this reason, Contractor agrees that if Contractor becomes aware of any facts, circumstances, techniques, or events that may or will materially increase or decrease the cost of the Services contemplated herein or, if Contractor is providing design services, the cost of the project being designed, Contractor shall promptly notify the Contract Administrator of said fact, circumstance, technique, or event and the estimated increased or decreased cost related thereto and, if Contractor is providing design services, the estimated increased or decreased cost estimate for the project being designed.
9.5 Confidentiality. City and Contractor agree that, until final approval by City, all data, plans, specifications, reports, and other documents are confidential and will not be released to third parties without prior written consent of both Parties unless required by law. Contractor, its officers, employees, agents, or subcontractors, shall not, without prior written authorization from the Contract Administrator or unless requested by the City Attorney, voluntarily provide documents, declarations, letters of support, testimony at depositions, response to interrogatories, or other information concerning the work performed under this Agreement. If Contractor, or any officer, employee, agent, or subcontractor of Contractor, provides any information or work product in violation of this Agreement, then City shall have the right to reimbursement and indemnity from Contractor for any Claims caused by or incurred as a result of Contractor’s conduct. Contractor shall promptly notify City should Contractor, its officers, employees, agents, or subcontractors be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions, or other discovery request, court order, or subpoena from any party regarding this Agreement and the Services performed thereunder. City retains the right, but has no obligation, to represent Contractor or be present at any deposition, hearing, or similar proceeding. Contractor agrees to cooperate fully with City and to provide City with the opportunity to review any response to discovery requests provided by Contractor. However, this right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response. Response to a subpoena or court order shall not be considered a voluntary disclosure so long as Contractor gives City notice of such court order or subpoena as provided herein. Contractor understands and agrees that it may be required to provide documents to the City to be produced in response to a Public Records Act request.
SECTION 10. MISCELLANEOUS PROVISIONS.
10.1 Attorneys’ Fees. If either Party to this Agreement brings any action, including an action for declaratory relief, to enforce or interpret the provision of this Agreement, the prevailing Party shall be entitled to reasonable attorneys’ fees and expenses including costs, in addition to any other relief to which that Party may be entitled; provided, however, that the attorneys’ fees awarded pursuant to this Subsection shall not exceed the hourly rate paid by City for legal services multiplied by the reasonable number of hours spent by the prevailing Party in the conduct of the litigation. The court may set such fees in the same action or in a separate action brought for that purpose.
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10.2 Venue. In the event that either Party brings any action against the other under this Agreement, the Parties agree that trial of such action shall be vested exclusively in San Bernardino County.
10.3 Severability. If any provision of this Agreement is held invalid, the remainder of this Agreement shall not be affected thereby and all other parts of this Agreement shall nevertheless be in full force and effect.
10.4 Section Headings and Subheadings. The section headings and subheadings contained in this Agreement are included for convenience only and shall not limit or otherwise affect the terms of this Agreement.
10.5 No Implied Waiver of Breach. Waiver by any Party to this Agreement of any term, condition, or covenant of this Agreement shall not constitute a waiver of any other term, condition, or covenant. Waiver by any Party of any breach of the provisions of this Agreement shall not constitute a waiver of any other provision or a waiver of any subsequent breach or violation of any provision of this Agreement. Acceptance by City of any work or services by Contractor shall not constitute a waiver of any of the provisions of this Agreement. No delay or omission in the exercise of any right or remedy by a non-defaulting Party on any default shall impair such right or remedy or be construed as a waiver. Any waiver by either Party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement.
10.6 Successors and Assigns. The provisions of this Agreement shall inure to the benefit of and shall apply to and bind the successors and assigns of the Parties.
10.7 Contractor Principals and Representatives. The following principals of Contractor (“Principals”) are hereby designated as being the principals and representatives of Contractor authorized to act in its behalf with respect to the work specified herein and make all decisions in connection therewith:
Todd A. Howard General Manager-West Coast
Jeffrey C. McCartney Area Manager
Brian Walsh Project Manager
It is expressly understood that the experience, knowledge, capability, and reputation of the Principals were a substantial inducement for City to enter into this Agreement. Therefore, the Principals shall be responsible during the term of this Agreement for directing all activities of Contractor and devoting sufficient time to personally supervise the Services hereunder. All personnel of Contractor, and any authorized agents, shall at all times be under the exclusive direction and control of the Principals. For purposes of this Agreement, the Principals may not be replaced nor may their responsibilities be substantially reduced by Contractor without the express written approval of City.
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10.8 City Contract Administration. This Agreement shall be administered by a City employee, «Staff_Contact», «Staff_Title» (“Contract Administrator”). All correspondence shall be directed to or through the Contract Administrator or his designee. It shall be Contractor’s responsibility to assure that the Contract Administrator is kept informed of the progress of the performance of the Services and Contractor shall refer any decisions which must be made by City to the Contract Administrator. Unless otherwise provided by applicable law, the Contract Administrator shall have the power to act on behalf of City for all purposes under this Agreement.
Unless otherwise provided in this Agreement, Contractor shall not accept direction or orders from any person other than the Contract Administrator or his designee.
10.9 Notices. Any written notice to Contractor shall be sent to:
Layne Christensen Company
Attn: Jeffrey C. McCartney
12030 E Riggs Road
Chandler, AZ 85249-3701
Any written notice to City shall be sent to the Contract Administrator at:
ADELANTO PUBLIC UTILITY AUTHORITY
11600 Air Expressway
Adelanto, CA 92301
Attn: Jessie Flores, City Manager
with a copy to:
City Clerk
ADELANTO PUBLIC UTILITY AUTHORITY
11600 Air Expressway
Adelanto, CA 92301
Any notice, demand, request, document, consent, approval, or communication either Party desires or is required to give to the other Party or any other person shall be in writing and either served personally or sent by prepaid, first-class mail. Either Party may change its address by notifying the other Party of the change of address in writing. Notice shall be deemed communicated at the time personally delivered or in seventy-two (72) hours from the time of mailing if mailed as provided in this Section.
10.10 Rights and Remedies. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the Parties are cumulative and the exercise by either Party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other Party.
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10.11 Integration, Interpretation. This Agreement, including Exhibits A and B, represents the entire and integrated agreement between City and Contractor and supersedes all prior negotiations, representations, or agreements, either written or oral. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either Party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply.
10.12 Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be an original and all of which together shall constitute one agreement.
10.13 Execution of Contract. The persons executing this Agreement on behalf of each of the Parties hereto represent and warrant that (i) such Party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said Party, (iii) by so executing this Agreement, such Party is formally bound to the provisions of this Agreement, and (iv) that entering into this Agreement does not violate any provision of any other agreement to which said Party is bound.
10.14 Nondiscrimination. Contractor covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that in the performance of this Agreement there shall be no discrimination against or segregation of, any person or group of persons on account of any impermissible classification including, but not limited to, race, color, creed, religion, sex, marital status, sexual orientation, national origin, or ancestry. Contractor shall take affirmative action to insure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, marital status, sexual orientation, national origin, or ancestry.
10.15 No Third Party Beneficiaries. There are no intended third-party beneficiaries under this Agreement and no such other third parties shall have any rights or obligations hereunder.
10.16 Nonliability of City Officers and Employees. No officer, official, employee, agent, representative, or volunteer of City shall be personally liable to Contractor, or any successor in interest, in the event of any default or breach by City or for any amount which may become due to Contractor or to its successor, or for breach of any obligation of the terms of this Agreement.
10.17 No Undue Influence. Contractor declares and warrants that no undue influence or pressure is used against or in concert with any officer or employee of City in connection with the award, terms or implementation of this Agreement, including any method of coercion, confidential financial arrangement, or financial inducement. No officer or employee of City shall receive compensation, directly or indirectly, from Contractor, or from any officer, employee, or agent of Contractor, in connection with the award of this Agreement or any work to be conducted as a result of this Agreement.
10.18 No Benefit to Arise to City Employees. No member, officer, or employee of City, or their designees or agents, and no public official who exercises authority over or has responsibilities with respect to this Agreement during his/her tenure or for one (1) year thereafter, shall have any interest, direct or indirect, in any agreement or sub-agreement, or the proceeds thereof, for the Services to be performed under this Agreement. 192
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[Signatures on Following Page]
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IN WITNESS WHEREOF, the Parties hereto have executed and entered into this Agreement as of the Effective Date.
APUA
Jessie Flores, Executive Director
Attest:
Brenda Lopez, City Clerk
Approved as to Form:
Todd Litfin, City Attorney
CONTRACTOR
Todd A. Howard, General Manager-West
Coast
[Note: 2 officer’s signatures required if
Contractor is a corporation, unless provided
with a certificate of secretary in-lieu]
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EXHIBIT A
EXHIBIT A
SCOPE OF SERVICES
Services shall include WTP Full Media Changeout services, including labor, materials, services and equipment is the total amount of all lump sum items and of all unit price sums, determined by multiplying the unit price for each item times the actual quantity of each such item, in the amount not to exceed «CONTRACT_AMOUNT_SPELLED_OUT» («Contract_Amount») as further detailed in the attached pages (if any). If the Services include Services pursuant to a request for proposals or bid, the Services shall include the work contemplated by the entire “Bid Package” or “Request for Proposals” for the Services, including all plans, addenda, documentation, and specifications attached thereto. A copy of the Bid Package and/or Request for Proposals, as applicable shall be retained with a copy of this Agreement. Contractor shall keep a copy of the same for at least three (3) years following termination of this Agreement. [ATTACH BID PACKAGE / SCOPE OF WORK]
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Woodard & Curran
Prepared For: Chris McMahon
Prepared By: Jeffrey McCartney
Thank you for the opportunity to be your water resource solution.
Layne to provide replacement media and media replacement services. 5/14/2026
Description:
Layne Christensen Company is a global water management, mineral exploration and drilling company.
We provide responsible infrastructure solutions for natural resources in water, minerals and energy, while offering innovative, sustainable products and services with an enduring commitment to safety, operational excellence, and client satisfaction. In June 2018, Layne became a wholly-owned subsidiary of Granite Construction, Inc.
1520 South Fifth Street, Suite 273, St. Charles, MO 63303 Adelanto, CA
620-474-7310
[email protected]
PROJECT ESTIMATE
We are pleased to submit the following quotation:
Full Media Changeout
196
Company: Woodard & Curran
Contact: Chris McMahon
Address: 1520 South Fifth Street, Suite 273, St. Charles, MO 63303 City, State, Zip: Adelanto, CA
Phone: 620-474-7310
Email: [email protected]
Project: Full Media Changeout
Unit Quantity Price Total
cuft 4800 124.75 $ 598,800.00 $
cuft 2060 84.90 $ 174,894.00 $
ea 1 57,400.00 $ 57,400.00 $
ea 1 71,900.00 $ 71,900.00 $
ea 5 1,500.00 $ 7,500.00 $
hrs 24 150.00 $ 3,600.00 $
ea 20 5,750.00 $ 115,000.00 $
Sub Total ==> $ 1,029,094.00
Total Taxable Amount
Total Tax Amount
Total Project Estimate Amount $ 1,029,094.00
Clarifications
1. This quote is valid for 30 days from above date.
2. Based upon Layne Christensen Company's attached Terms & Conditions.
3. Layne Christensen Company's payment terms are "Net 30".
4. Signing this project estimate authorizes Layne Christensen Company to proceed with your project.
5. Use Tax rate is included in the cost of materials only.
Layne Christensen Company
05/14/26
Jeffrey McCartney Date Date
PROJECT ESTIMATE
No
Use tax
Date:
Estimated By:
Location:
May 14, 2026
Jeffrey McCartney
Adelanto, CA
Prevailing Wage:
7.750%
Type of Tax:
Tax Rate:
Description
Disposal: Spent media disposal, transportation, bin rental, profiling of nonhazardous media.
Media Changeout Services: 3 days onsite, 8 hour days, Empty three (3) media vessels w/ vacuum truck, Labor, Per Diem, Supersacks. Current Pricing based on standard wage rate, should prevailing wages be required additional costs will apply.
Replacement LayneOx Media (Super Sacks)
Replacement Garnet (Super Sacks)
Layne Field Supervision Personnel: Include 5 days on site, 8 hour days, travel time, flights, rental car, hotel, and fuel.
Layne Labor: Administative, PM, Purchasing and Engineering for job set up, billing and logistics.
Estimate Freight: Actual Freight will be PP&A
Jeffrey McCartney
Woodard & Curran
Chris McMahon
197
STANDARD TERMS AND CONDITIONS
LIABILITY OF CONTRACTOR: Contractor shall not be liable for any bodily injury, death, or injury to or destruction of tangible property except as the same may have been caused by the negligence of Contractor. In no event shall Contractor be liable for any delays or special, indirect, incidental or consequential damages. Purchaser agrees that the total limit of Contractor’s liability (whether based on negligence, warranty, strict liability or otherwise) hereunder, shall not exceed the aggregate amount due Contractor for services rendered under this contract. All claims, including claims for negligence or any other cause whatsoever, shall be deemed waived unless made in writing and received by Contractor within one (1) year after Contractor’s completion of work hereunder.
INSURANCE: Contractor shall provide workers’ compensation insurance, public liability and property damage insurance covering its employees and operation. Purchaser, at its option, may maintain such insurance as will protect it against claims arising out of the work.
REIMBURSABLE COST: In addition to the hourly charge provided on the face of this contract, Purchaser will reimburse Contractor for travel and living expenses necessarily incurred by the Contractor in the performance of the work, minor incidental expenses such as overnight mail, telephone and petty cash expenditures necessarily incurred, cost of removal of all debris if so directed by Purchaser, sales, consumer, use and similar taxes required by law and the cost of permits and all licenses necessary for the execution of the work. The foregoing costs shall be billed at actual cost plus fifteen percent (15%) unless otherwise agreed upon.
PRICE ADJUSTMENT: Any cost estimates or time frames stated herein are subject to equitable adjustment in the event of differing or unforeseeable conditions, changes in applicable laws after the date of this contract, unforeseeable delays or difficulties caused by acts of God, Purchaser or any third parties. Prices of goods acquired by Contractor from others shall be adjusted to reflect Contractor’s price in effect at time of shipment. The price of Contractor’s goods will be adjusted to the price in effect at time of shipment in accordance with Contractor’s current escalation policies or as specifically covered in this contract.
TERMS: Thirty (30) days net from date of invoice. For extended projects, Contractor shall submit invoices on a monthly basis for any and all work completed and materials or equipment provided during the previous month. Past due invoices shall be subject to a delinquency charge of one and one-half percent (1-1/2%) per month (eighteen percent (18%) per annum) unless a lower charge is required under applicable law, in which case the lower rate shall apply. Purchaser agrees to pay all collection fees, attorneys’ fees and costs incurred in the collection of any past due amounts arising out of this contract. Contractor shall have the right to immediately terminate this contract without further liability if Purchaser fails to make timely payment or otherwise materially breaches this contract.
MATERIAL SHORTAGES AND COST INCREASES: If any portion of materials or equipment which Contractor is required to furnish becomes unavailable, either temporarily or permanently, through causes beyond the control and without the fault of Contractor, then in the case of temporary unavailability any completion time frames shall be extended for such period of time as Contractor shall be delayed by such above-described unavailability, and in the case of permanent unavailability Contractor shall be excused from the requirement of furnishing such materials or equipment. Purchaser agrees to pay Contractor any increase in cost between the cost of the materials or equipment which have become permanently unavailable and the cost of the closest substitute which is then reasonably available.
DELAYS: If Contractor is delayed at any time in the progress of work by labor disputes, fire, unusual delays in transportation, unavoidable casualties, weather, or any cause beyond Contractor’s reasonable control, then any completion time frames shall be extended by a reasonable period of time, at least equal to the period of delay.
CHANGED CONDITIONS: The discovery of any hazardous waste, substances, pollutants, contaminants, underground obstructions or utilities on or in the job site which were not brought to the attention of Contractor prior to the date of this contract will constitute a materially different site condition entitling Contractor, at its sole discretion to immediately terminate this contract without further liability.
ESCALATION: This contract is made with the understanding that Contractor will be able to begin and continuously proceed with its work on or before the proposed start date on the reverse side hereof. In the event Contractor is unable to commence its work on or before said date because the project is not ready for Contractor's work, Contractor will charge Purchaser the amount of increase in Contractor's cost attributable to such delay, plus Contractor's normal overhead percentage.
GUARANTEE AND LIABILITY: Contractor warrants that its labor supplied hereunder shall be free from defect and shall conform to the standard of care in effect in its industry at the time of performance of such labor for a period of twelve (12) months after substantial completion of Contractor's work. Contractor agrees, to the extent it is permitted, to pass on any warranties provided by the manufacturers of materials and/or equipment furnished under this contract. Contractor itself provides no warranty, express, implied or otherwise, on any such materials or equipment. Contractor will not be responsible for: work done, material or equipment furnished or repairs or alterations made by others.
For any breach hereunder, Contractor shall be liable only for the value of the installation work or, if it wrongfully fails to install, then its liability is limited to the difference between the contract price herein, and the value of other similar installation work. If Contractor’s breach damages any materials or equipment furnished hereunder, Contractor shall only be liable for the value of such materials or equipment. Under no circumstances will Contractor be liable for consequential, special or indirect damages, including without limitation, any crop loss or damage, damage to other equipment, structures or property, nor for any other similar or dissimilar damages or losses whether due to delay, failure to furnish or install, delay in installation, defective material or equipment, defective workmanship, defective installation, delay in replacing, nor for any cause or breach whatsoever. In any event, Contractor’s total liability towards Purchaser for alleged faulty performance or nonperformance under this contract shall be limited to the total contract price. No materials, equipment or services contracted herein carries any guarantee not mentioned in this contract. THE ABOVE WARRANTY IS IN LIEU OF ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, WHICH ARE HEREBY DISCLAIMED.
TITLE AND OWNERSHIP: In case of default on Purchaser’s part, Contractor shall have the right to enter the premises upon which any material or equipment furnished herein have been installed and retake such goods not then paid for and pursue any further remedy provided by law, including recovery of attorneys’ fees and any deficiency to the maximum extent and in the manner provided by law. Such materials and equipment shall retain their character as personal property of Contractor until payment in full is received by Contractor, regardless of their mode of attachment. Unless prior specific written instructions are received to the contrary, surplus and replaced materials and equipment resulting from repair or installation work shall become the property of Contractor.
DELIVERY: Shipment schedules and dates, expressed or implied, are contingent on normal conditions. Contractor will not be responsible for any delays in shipment or completion caused by factors beyond its control such as, but not limited to, suppliers’ failures, accidents, work stoppages or operation of or changes in the law. Shipments will be made as promptly as Contractor’s ability to obtain materials and/or equipment and scheduling will permit. No delay in shipments or variances from shipping schedule shall be cause of cancellation or any claim for damage. Any changes in layout or design requested after acceptance of this contract will be made at Purchaser’s additional cost. Any such change and/or time taken to supply engineering data or to approve drawings will automatically extend shipping schedules. Equipment will be shipped “knocked down” to the extent Contractor considers necessary, with small parts stripped from equipment and crated. On and after delivery to the carrier for transportation to the Purchaser’s site, Purchaser shall be responsible for all loss or damage to materials or equipment due to any cause, including but not limited to loss or damage resulting from casualty.
INDEMNIFICATION: Purchaser agrees to indemnify and hold Contractor, its directors, officers, stockholders, employees, agents and subcontractors, harmless from and against any and all claims, demands, causes of action (including third party claims, demands or causes of action for contribution or indemnification), liability and costs (including attorneys’ fees and other costs of defense) asserted and/or filed by Purchaser or any third party(ies), including without limitation Purchaser’s employees, and arising out of or as a result of: (i) the presence of Contractor or its subcontractors at the job site, (ii) the work performed by Contractor or its subcontractors, or (iii) any negligent act or omission of Purchaser, its employees, agents, consultants, other contractors or any person or entity under Purchaser’s control; except to the extent that such claims, demands, causes of action, liabilities or costs are caused by the negligence of Contractor or its subcontractors.
INTERPRETATION: This contract shall be governed by and construed in accordance with the laws of the state of the job site location. If any term, provision or condition contained herein shall, to any extent, be invalid or unenforceable, pursuant to state law or otherwise, the remainder of the terms, provisions and conditions herein (or the application of such term, provision, or condition to persons or circumstances other than those in respect of which it is invalid or unenforceable) shall not be affected thereby, and each term, provision and condition of this contract shall be valid and enforceable to the fullest extent permitted by law.
ASSIGNMENT & SUBLETTING: Purchaser shall not have the right to transfer or assign its rights and/or obligations under this contract to any third party, related or unrelated, without the express written consent of Contractor.
Contractor shall have the right to transfer, assign or sublet all or any portion of its rights or obligations hereunder, but such transfer, assignment or subletting shall not relieve Contractor from its full obligations to Purchaser unless such transfer, assignment or subletting is pursuant to the sale of Contractor, or the division of Contractor responsible for this contract, to a third party.
MISCELLANEOUS: The terms and conditions set forth herein constitute the entire understanding of the parties relating to the work to be performed, and materials and equipment to be provided, by Contractor for the Purchaser.
All previous proposals, offers, and other communications relative to the provisions of the subject work, oral or written, are hereby superseded, except to the extent that they have been expressly incorporated herein. Any modifications or revisions of any provisions herein or any additional provisions contained in any purchase order, acknowledgment, or other form of the Purchaser are hereby expressly objected to by Contractor and shall not operate to modify this contract. This contract shall take effect upon acceptance and execution by both parties. 198
LAYNE CHRISTENSEN COMPANY
CERTIFICATE OF SECRETARY
______________________________________________________________________________ RESOLVED, that, effective February 2, 2026, through February 1, 2027, the individuals named on the attached Exhibit 1 are authorized to negotiate, execute and/or attest electronic and paper documents and contracts necessary for the conduct of the Company's affairs with respect to the submission and execution of construction project bids, bid proposals, bid addenda and all other bid-related documents prepared and submitted on behalf of the Company not to exceed $100,000, relating to any and all domestic construction projects arising out of the Company's operations.
RESOLVED, that, effective February 2, 2026, through February 1, 2027, the individuals named on the attached Exhibit 2 are authorized to negotiate, execute and attest electronic and paper documents and contracts necessary for the conduct of the Company's affairs with respect to the submission and execution of construction project bids, bid proposals, bid addenda and all other bid-related documents prepared and submitted on behalf of the Company not to exceed $500,000, relating to any and all domestic construction projects arising out of the Company's operations.
RESOLVED, that, effective February 2, 2026, through February 1, 2027, the individuals named on the attached Exhibit 3 are authorized to negotiate, execute and attest electronic and paper documents and contracts necessary for the conduct of the Company's affairs with respect to the submission and execution of construction project bids, bid proposals, bid addenda and all other bid-related documents prepared and submitted on behalf of the Company not to exceed $2 million, relating to any and all domestic construction projects arising out of the Company's operations.
RESOLVED, that, effective February 2, 2026, through February 1, 2027, the individuals named on the attached Exhibit 4 are authorized to negotiate, execute and attest electronic and paper documents and contracts necessary for the conduct of the Company's affairs with respect to the submission and execution of construction project bids, bid proposals, bid addenda and all other bid-related documents prepared and submitted on behalf of the Company not to exceed $10 million, relating to any and all domestic construction projects arising out of the Company's operations.
RESOLVED FURTHER, that the authority provided for herein shall be in accordance with applicable policies, procedures, and limits of authority previously approved and the Granite Construction Incorporated Delegation of Authority and Policy then in effect.
I, Aaron Storm, do hereby certify that I am duly qualified as Secretary of LAYNE CHRISTENSEN COMPANY, a Delaware corporation (the "Company"); that the foregoing is a true and correct copy of resolutions duly adopted on February 2, 2026, by written consent of the Sole Director; that the Director acting was duly and regularly elected; and that the resolutions adopted have not been modified or repealed and is still in full force and effect.
Dated: February 2, 2026 ____________________________________ Aaron Storm
Docusign Envelope ID: 7525C66C-49B0-4EC7-B575-B2A47016FEFE 199
EXHIBIT 1
$100,000 Authority
Project Managers I & II
Account Managers I & II
LAYNE CHRISTENSEN COMPANY
AUTHORIZED SIGNERS
James J. Bell
Eric M. Blount
Kevin J. Bruch
Jared Brum
Brandon D. Butrum
Joffry L. Camp
Cade Canaday
Blake Colopy
Joshua R. Davis
Anders Edling
Dylan Ellis
J. Clay Greene
Crystal N. Gregory
Michael Hamburger
Robert L. Hausladen
Brenda Lee Hoy
Grace Huffmon
Dakota Hull
Griffin Hunter
Anas Hussain
Matthew M. Jarreau
Christopher C. Kennedy
Canyon Kenny
Trevor Lee
Victor W. Matte
Robert J. Middlestead
Emily E. Miesner
Sean J. Miguel
Christopher P. Miller
Ethan E. Nieves
Jeremy Rice
Alexander Ruiz
Chad M. Russ
Mike L. Schanaman
Robert Shrum
Timothy Skendrovich
Stephen D. Taylor
David Terpstra
Dewayne R. Trammell
Brian Walsh
Docusign Envelope ID: 7525C66C-49B0-4EC7-B575-B2A47016FEFE 200
ATTESTORS
Myka Anthoney
Mary Bailey
Vania Becerra
Holly Dockery
Amy J. Earwood
Shellie M. Fox
Mary K. Foy
Jacqueline D. Frame
Tanner P. Habetz
Jennifer A. Janz
Melissa B. Jones
Lisa Kuehl
Monique Lewinski
Tisha Lucero
Paula J. Miles
Jeny A. Musso
Marybeth Rios-Deleon
Melinda E. Roberts
Maria Sanchez
Jaida P. Shuster
Cathleen R. White
Anthony Young
Kathryn H. Young
Docusign Envelope ID: 7525C66C-49B0-4EC7-B575-B2A47016FEFE 201
EXHIBIT 2
$500,000 Authority
Project Managers III
Account Managers III
Client Services Manager
Technical Sales Specialists II
Area Managers
Senior Estimator I
LAYNE CHRISTENSEN COMPANY
AUTHORIZED SIGNERS
Ryan M. Bordelon
Harry J. Burton
James Crossley Cooper III
Robert E. Curley
Luca DeAngelis
Jasen Decker
Dustin P. Deville
Brian W. Dellett
Terence L. Heiliger
Bradley A. Harris
Mark S. Howard
Stuart E.M. Lambert
Peter Martinez
Jeffrey C. McCartney
Perry J. McMahon
David C. Meyer
Tristan Parsley
Randall Roberts
Max Sainsbury
Carl L. Simpson
Andrew J. Smith
Kenneth Roy Thompson
ATTESTORS
Myka Anthoney
Mary Bailey
Vania Becerra
Holly Dockery
Amy J. Earwood
Shellie M. Fox
Mary K. Foy
Jacqueline D. Frame
Tanner P. Habetz
Jennifer A. Janz
Melissa B. Jones
Lisa Kuehl
Monique Lewinski
Tisha Lucero
Docusign Envelope ID: 7525C66C-49B0-4EC7-B575-B2A47016FEFE 202
Paula J. Miles
Jeny A. Musso
Marybeth Rios-Deleon
Melinda E. Roberts
Maria Sanchez
Jaida P. Shuster
Cathleen R. White
Anthony Young
Kathryn H. Young
Docusign Envelope ID: 7525C66C-49B0-4EC7-B575-B2A47016FEFE 203
EXHIBIT 3
$2M Authority
General Managers
Area Managers
Chief Estimator
LAYNE CHRISTENSEN COMPANY
AUTHORIZED SIGNERS
Jerri L. Burton
Steven Costello
William D. Eddy
Paul J. Forbes
Todd A. Howard
Juan C. Lopez-Vasquez
Michael S. Magnin
Matthew T. Reed
Joseph Reid
Jason Smith
William C. Stuckey
ATTESTORS
Myka Anthoney
Mary Bailey
Vania Becerra
Holly Dockery
Amy J. Earwood
Shellie M. Fox
Mary K. Foy
Jacqueline D. Frame
Tanner P. Habetz
Jennifer A. Janz
Melissa B. Jones
Lisa Kuehl
Monique Lewinski
Tisha Lucero
Paula J. Miles
Jeny A. Musso
Marybeth Rios-Deleon
Melinda E. Roberts
Maria Sanchez
Jaida P. Shuster
Cathleen R. White
Anthony Young
Kathryn H. Young
Docusign Envelope ID: 7525C66C-49B0-4EC7-B575-B2A47016FEFE 204
EXHIBIT 4
$10M Authority
Layne Vice President
LAYNE CHRISTENSEN COMPANY
AUTHORIZED SIGNER
Gernot Penzhorn
ATTESTORS
Myka Anthoney
Mary Bailey
Vania Becerra
Holly Dockery
Amy J. Earwood
Shellie M. Fox
Mary K. Foy
Jacqueline D. Frame
Tanner P. Habetz
Jennifer A. Janz
Melissa B. Jones
Lisa Kuehl
Monique Lewinski
Tisha Lucero
Paula J. Miles
Jeny A. Musso
Marybeth Rios-Deleon
Melinda E. Roberts
Maria Sanchez
Jaida P. Shuster
Cathleen R. White
Anthony Young
Kathryn H. Young
Docusign Envelope ID: 7525C66C-49B0-4EC7-B575-B2A47016FEFE 205
ADELANTO PUBLIC UTILITY AUTHORITY
A D E L A N T O G O V E R N M E N T A L C E N T E R | 1 1 6 0 0 A I R E X P R E S S W A Y | A D E L A N T O , C A L I F O R N I A 9 2 3 0 1
DATE: June 24, 2026
TO: Honorable Mayor and City Council Members
FROM: Jessie Flores, City Manager
BY: Todd Litfin, City Attorney
SUBJECT: OPEN A PUBLIC HEARING AND ADOPT RESOLUTION APUA 26-02
PROVIDING FOR THE COLLECTION OF WATER AND SEWER STANDBY
FEES BY THE COUNTY TAX COLLECTOR AT THE SAME TIME AS AND
TOGETHER WITH THE GENERAL TAXES OF THE CITY FOR FISCAL YEAR 2026/2027.
STAFF RECOMMENDATION:
Open a Public Hearing and adopt Resolution No. APUA 26-02 approving the report and placing Water and Sewer Standby Fees on the tax roll for collection by the County for Fiscal Year 2026/2027.
BACKGROUND:
Annually, the City of Adelanto submits to the County Tax Collector water and sewer standby fees that will be added to the property tax bill. Water and sewer standby fees are charged to vacant, unimproved parcels of land within the City, which benefit from the availability of water and sewer system capacity. The standby fees were established by the City in 1996 and revenues associated with these charges are pledged for repayment of existing revenue bonds.
In order to collect the standby fees on the property tax roll, the City caused the filing of a report describing each parcel subject to the standby fees, and the amount of the standby fees for the forthcoming fiscal year. The City is now conducting a public hearing to determine whether to collect the standby fees on the tax roll. If there is a protest filed by a majority of the parcels subject to the standby fees, the City may not collect the standby fees on the property tax roll and must instead direct bill customers.
These charges are levied to help ensure availability of utility service for every undeveloped parcel when necessary, by allowing the City to plan for build out and design for capacity, distribution and collection facilities. Upon the parcel’s eventual commercial or residential development, facilities are available for connection into the City sewer and water systems.
FISCAL IMPACT:
There is no impact to the general fund. Standby fees are pledged to the repayment of revenue bonds of the APUA. Based upon the preliminary data we have received from the County, we estimate the levy for water and sewer standby fees to be approximately $545,371 and $332,534, respectively, for Fiscal Year 2026/2027.
ATTACHMENTS:
1. Resolution No. APUA 26-02
2. Fiscal Year 2026/2027 Sewer Standby Preliminary Roll 206
Water and Sewer Standby Rates