3.8.5 Trenching Work. If the Total Contract Price exceeds $25,000 and if the Work governed by this Contract entails excavation of any trench or trenches five (5) feet or more in depth, Contractor shall comply with all applicable provisions of the California Labor Code, including Section 6705. To this end, Contractor shall submit for City's review and approval 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.
3.8.6 Hazardous Materials and Differing Conditions. As required by California Public Contract Code Section 7104, if this Contract involves digging trenches or other excavations that extend deeper than four (4) feet below the surface, Contractor shall promptly, and prior to disturbance of any conditions, notify City of: (1) any material discovered in excavation that Contractor believes to be a hazardous waste that is required to be removed to a Class I, Class II or Class Ill disposal site; (2) subsurface or latent physical conditions at the site differing from those indicated by City; and (3) unknown physical conditions of an unusual nature at the site, significantly different from those ordinarily encountered in such contract work. Upon notification, City shall promptly investigate the conditions to determine whether a change order is appropriate.
In the event of a dispute, Contractor shall not be excused from any scheduled completion date and shall proceed with all Work to be performed under the Contract but shall retain all rights provided by the Contract or by law for making protests and resolving the dispute.
3.8.7 Underground Utility Facilities. To the extent required by Section 4215 of the California Government Code, City shall compensate Contractor for the costs of: (1) locating and repairing damage to underground utility facilities not caused by the failure of Contractor to exercise reasonable care; (2) removing or relocating underground utility facilities not indicated in the construction drawings; and (3) equipment necessarily idled during such work. Contractor shall not be assessed liquidated damages for delay caused by failure of City to provide for removal or relocation of such utility facilities.
3.8.8 Air Quality. Contractor must fully comply with all applicable laws, rules and regulations in furnishing or using equipment and/or providing services, including, but not limited to, emissions limits and permitting requirements imposed by the California Air Resources Board (CARB).
Although CARB limits and requirements are more broad, Contractor shall specifically be aware of their application to "portable equipment", which definition is considered by CARS to include any item of equipment with a fuel-powered engine. Contractor shall indemnify City against any fines or penalties imposed by CARS, or any other governmental or regulatory agency for violations of applicable laws, rules and/or regulations by Contractor, its subcontractors, or others for whom Contractor is responsible under its indemnity obligations provided for in this Agreement.
3.8.9 State Recycling Mandates. Contractor shall comply with State Recycling Mandates.
Any recyclable materials/debris collected by the contractor that can be feasibly diverted via reuse or recycling must be hauled by the appropriate handler for reuse or recycling.
3.9 Completion of Work. When Contractor determines that it has completed the Work required herein, Contractor shall so notify City in writing and shall furnish all labor and material releases required by this Contract. City shall thereupon inspect the Work. If the Work is not acceptable to the City, the City shall indicate to Contractor in writing the specific portions or items of Work which are unsatisfactory or incomplete. Once Contractor determines that it has completed the incomplete or unsatisfactory Work, Contractor may request a reinspection by the City. Once the Work is acceptable to City, City shall pay to Contractor the Total Contract Price remaining to be paid, less any amount which City may be authorized or directed by law to retain. Payment of
retention proceeds due to Contractor shall be made in accordance with Section 7107 of the California Public Contract Code.
3.10 Claims; Government Code Claim Compliance.
3.10.1 Intent. Effective January 1, 1991, Section 20104 et seq., of the California Public Contract Code prescribes a process utilizing informal conferences, non-binding judicial supervised mediation, and judicial arbitration to resolve disputes on construction claims of $375,000 or less. Effective January 1, 2017, Section 9204 of the Public Contract Code prescribes a process for negotiation and mediation to resolve disputes on construction claims. The intent of this Section is to implement Sections 20104 et seq. and Section 9204 of the California Public Contract Code. This Section shall be construed to be consistent with said statutes.
3.10.2 Claims. For purposes of this Section, "Claim" means a separate demand by the Contractor, after a change order duly requested in accordance with the terms of this Contract has been denied by the City, for (A) a time extension, (B) payment of money or damages arising from Work done by or on behalf of the Contractor pursuant to the Contract, or (C) an amount the payment of which is disputed by the City. Claims governed by this Section may not be filed unless and until the Contractor completes all procedures for giving notice of delay or change and for the requesting of a time extension or change order, including but not necessarily limited to the change order procedures contained herein, and Contractor's request for a change has been denied in whole or in part. Claims governed by this Section must be filed no later than fourteen (14) days after a request for change has been denied in whole or in part or after any other event giving rise to the Claim. The Claim shall be submitted in writing to the City and shall include on its first page the following in 16-point capital font: "THIS IS A CLAIM." Furthermore, the claim shall include the documents necessary to substantiate the claim. Nothing in this Section is intended to extend the time limit or supersede notice requirements otherwise provided by contract for the filing of claims, including all requirements pertaining to compensation or payment for extra Work, disputed Work, and/or changed conditions. Failure to follow such contractual requirements shall bar any claims or subsequent lawsuits for compensation or payment thereon.
3.10.3 Supporting Documentation. The Contractor shall submit all claims in the following format.
3.10.3.1 Summary of claim merit and price, reference Contract Document provisions pursuant to which the claim is made
3.10.3.2 List of documents relating to claim:
(A) Specifications
(B) Drawings
(C) Clarifications (Requests for Information)
(D) Schedules
(E) Other
3.10.3.3 Chronology of events and correspondence
3.10.3.4 Analysis of claim merit
3.10.3.5 Analysis of claim cost
3.10.3.6 Time impact analysis in CPM format
3.10.3.7 If Contractor's claim is based in whole or in part on an allegation of errors or omissions in the Drawings or Specifications for the Project, Contractor shall provide a summary of the percentage of the claim subject to design errors or omissions and shall obtain a certificate of merit in support of the claim of design errors and omissions.
3.10.3.8 Cover letter and certification of validity of the claim, including any claims from subcontractors of any tier, in accordance with Government Code section 12650 et seq.
3.10.4 City's Response. Upon receipt of a claim pursuant to this Section, City shall conduct a reasonable review of the claim and, within a period not to exceed 45 days, shall provide the Contractor a written statement identifying what portion of the claim is disputed and what portion is undisputed. Any payment due on an undisputed portion of the claim will be processed and made within 60 days after the public entity issues its written statement.
3.10.4.1 If City needs approval from its governing body to provide the Contractor a written statement identifying the disputed portion and the undisputed portion of the claim, and the governing body does not meet within the 45 days or within the mutually agreed to extension of time following receipt of a claim sent by registered mail or certified mail, return receipt requested, City shall have up to three days following the next duly publicly noticed meeting of the governing body after the 45-day period, or extension, expires to provide the Contractor a written statement identifying the disputed portion and the undisputed portion.
3.10.4.2 Within 30 days of receipt of a claim, City may request in writing additional documentation supporting the claim or relating to defenses or claims City may have against the Contractor. If additional information is thereafter required, it shall be requested and provided pursuant to this subdivision, upon mutual agreement of City and the Contractor.
3.10.4.3 City's written response to the claim, as further documented, shall be submitted to the Contractor within 30 days (if the claim is less than $50,000, within 15 days) after receipt of the further documentation, or within a period of time no greater than that taken by the Contractor in producing the additional information or requested documentation, whichever is greater.
3.10.5 Meet and Confer. If the Contractor disputes City's written response, or City fails to respond within the time prescribed, the Contractor may so notify City, in writing, either within 15 days of receipt of City's response or within 15 days of City's failure to respond within the time prescribed, respectively, and demand an informal conference to meet and confer for settlement of the issues in dispute. Upon receipt of a demand, City shall schedule a meet and confer conference within 30 days for settlement of the dispute.
3.10.6 Mediation. Within 10 business days following the conclusion of the meet and confer conference, if the claim or any portion of the claim remains in dispute, City shall provide the Contractor a written statement identifying the portion of the claim that remains in dispute and the portion that is undisputed. Any payment due on an undisputed portion of the claim shall be processed and made within 60 days after City issues its written statement. Any disputed portion of the claim, as
identified by the Contractor in writing, shall be submitted to nonbinding mediation, with City and the Contractor sharing the associated costs equally. City and Contractor shall mutually agree to a mediator within 10 business days after the disputed portion of the claim has been identified in writing, unless the parties agree to select a mediator at a later time.
3.10.6.1 If the Parties cannot agree upon a mediator, each Party shall select a mediator and those mediators shall select a qualified neutral third party to mediate with regard to the disputed portion of the claim. Each Party shall bear the fees and costs charged by its respective mediator in connection with the selection of the neutral mediator.
3.10.6.2 For purposes of this section, mediation includes any nonbinding process, including, but not limited to, neutral evaluation or a dispute review board, in which an independent third party or board assists the Parties in dispute resolution through negotiation or by issuance of an evaluation. Any mediation utilized shall conform to the timeframes in this section.
3.10.6.3 Unless otherwise agreed to by City and the Contractor in writing, the mediation conducted pursuant to this section shall excuse any further obligation under Section 20104.4 to mediate after litigation has been commenced.
3.10.6.4 The mediation shall be held no earlier than the date the Contractor completes the Work or the date that the Contractor last performs Work, whichever is earlier. All unresolved claims shall be considered jointly in a single mediation, unless a new unrelated claim arises after mediation is completed.
3.10.7 Procedures After Mediation. If following the mediation, the claim or any portion remains in dispute, the Contractor must file a claim pursuant to Chapter 1 (commencing with Section 900) and Chapter 2 (commencing with Section 910) of Part 3 of Division 3.6 of Title 1 of the Government Code. For purposes of those provisions, the running of the period of time within which a claim must be filed shall be tolled from the time the Contractor submits his or her written claim pursuant to subdivision (a) until the time the claim is denied, including any period of time utilized by the meet and confer conference or mediation.
3.10.8 Civil Actions. The following procedures are established for all civil actions filed to resolve claims subject to this Section.
3.10.8.1 Within 60 days, but no earlier than 30 days, following the filing or responsive pleadings, the court shall submit the matter to non-binding mediation unless waived by mutual stipulation of both parties or unless mediation was held prior to commencement of the action in accordance with Public Contract Code section 9204 and the terms of these procedures. The mediation process shall provide for the selection within 15 days by both parties of a disinterested third person as mediator, shall be commenced within 30 days of the submittal, and shall be concluded within 15 days from the commencement of the mediation unless a time requirement is extended upon a good cause showing to the court.
3.10.8.2 If the matter remains in dispute, the case shall be submitted to judicial arbitration pursuant to Chapter 2.5 (commencing with Section 1141.10) of Title 3 of Part 3 of the Code of Civil Procedure, notwithstanding Section 1114.11 of that code. The Civil Discovery Act of 1986 (Article 3 (commencing with Section 2016) of Chapter 3 of Title 3 of Part 4 of the Code of Civil Procedure) shall apply to any proceeding brought under this subdivision consistent with the rules pertaining to judicial arbitration.
3.10.8.3 In addition to Chapter 2.5 (commencing with Section 1141.10) of Title 3 of Part 3 of the Code of Civil Procedure, (A) arbitrators shall, when possible, be experienced in construction law, and (B) any party appealing an arbitration award who does not obtain a more favorable judgment shall, in addition to payment of costs and fees under that chapter, also pay the attorney's fees on appeal of the other party.
3.10.9 Government Code Claims. In addition to any and all contract requirements pertaining to notices of and requests for compensation or payment for extra work, disputed work, claims and/or changed conditions, Contractor must comply with the claim procedures set forth in Government Code sections 900 et seq. prior to filing any lawsuit against the City. Such Government Code claims and any subsequent lawsuit based upon the Government Code claims shall be limited to those matters that remain unresolved after all procedures pertaining to extra work, disputed work, claims, and/or changed conditions have been followed by Contractor. If no such Government Code claim is submitted, or if any prerequisite contractual requirements are not otherwise satisfied as specified herein, Contractor shall be barred from bringing and maintaining a valid lawsuit against the City. A Government Code claim must be filed no earlier than the date the work is completed or the date the Contractor last performs work on the Project, whichever occurs first. A Government Code claim shall be inclusive of all unresolved claims unless a new unrelated claim arises after the Government Code claim is submitted.
3.10.10 Non-Waiver. City's failure to respond to a claim from the Contractor within the time periods described in this Section or to otherwise meet the time requirements of this Section shall result in the claim being deemed rejected in its entirety. City's failure to respond shall not waive City's rights to any subsequent procedures for the resolution of disputed claims.
3.11 Loss and Damage. Except as may otherwise be limited by law, Contractor shall be responsible for all loss and damage which may arise out of the nature of the Work agreed to herein, or from the action of the elements, or from any unforeseen difficulties which may arise or be encountered in the prosecution of the Work until the same is fully completed and accepted by City.
3.12 Indemnification.
3.12.1 Scope of Indemnity. To the fullest extent permitted by law, Contractor shall defend, indemnify and hold the City, its officials, employees, agents and authorized volunteers free and harmless from any and all claims, demands, causes of action, suits, actions, proceedings, costs, expenses, liability, judgments, awards, decrees, settlements, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, that are alleged by a third party (collectively, "Claims") in any manner arising out of, pertaining to, or incident to any alleged acts, errors or omissions, or willful misconduct of Contractor, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the Contractor's services, the Project or this Agreement, including without limitation the payment of all consequential damages, expert witness fees and attorneys' fees and other related costs and expenses. Notwithstanding the foregoing, to the extent required by Civil Code section 2782, Contractor's indemnity obligation shall not apply to liability for damages for death or bodily injury to persons, injury to property, or any other loss, damage or expense arising from the sole or active negligence or willful misconduct of the City or the City's agents, servants, or independent contractors who are directly responsible to the City, or for defects in design furnished by those persons.
3.13 Insurance.
3.13.1 Time for Compliance. Contractor shall not commence Work under this Contract until it has provided evidence satisfactory to the City that it has secured all insurance required under this section. In addition, Contractor shall not allow any subcontractor to commence work on any subcontract until it has provided evidence satisfactory to the City that the subcontractor has secured all insurance required under this section. Failure to provide and maintain all required insurance shall be grounds for the City to terminate this Contract for cause.
3.13.2 Minimum Requirements. Contractor shall, at its expense, procure and maintain for the duration of the Contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the Work hereunder by Contractor, its agents, representatives, employees or subcontractors. Contractor shall also require all of its subcontractors to procure and maintain the same insurance for the duration of the Contract. Such insurance shall meet at least the following minimum levels of coverage.
3.13.2.1 Minimum Scope of Insurance. Coverage shall be at least as broad as the latest version of the following: (1) General Liability: Insurance Services Office Commercial General Liability coverage (occurrence form CG 00 01} OR Insurance Services Office Owners and Contractors Protective Liability Coverage Form (CG 00 09 11 88) (coverage for operations of designated contractor); (2) Automobile Liability: Insurance Services Office Business Auto Coverage form number CA 00 01, code 1 (any auto); and (3) Workers' Compensation and Employer's Liability: Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance. Policies shall not contain exclusions contrary to this Contract.
3.13.2.2 Minimum Limits of Insurance. Contractor shall maintain limits no less than: (1) General Liability: $2,000,000 per occurrence and $4,000,000 aggregate for bodily injury, personal injury and property damage; (2) Automobile Liability: $1,000,000 per accident for bodily injury and property damage; and (3) Workers' Compensation and Employer's Liability:
Workers' compensation limits as required by the Labor Code of the State of California.
Employer's Liability limits of $1,000,000 each accident, policy limit bodily injury or disease, and each employee bodily injury or disease. Defense costs shall be available in addition to the limits. Notwithstanding the minimum limits specified herein, any available coverage shall be provided to the parties required to be named as additional insureds pursuant to this Contract.
3.13.3 Insurance Endorsements. The insurance policies shall contain the following provisions, or Contractor shall provide endorsements (amendments) on forms supplied or approved by the City to add the following provisions to the insurance policies:
3.13.3.1 General Liability. (1) Such policy shall give the City, its officials, employees, agents and authorized volunteers additional insured status using ISO endorsements CG20 10 12 19 plus CG20 37 12 19, or endorsements providing the exact same coverage, with respect to the Work or operations performed by or on behalf of Contractor, including materials, parts or equipment furnished in connection with such work; (2) all policies shall waive or shall permit Contractor to waive all rights of subrogation which may be obtained by the Contractor or any insurer by virtue of payment of any loss or any coverage provided to any person named as an additional insured pursuant to this Contract, and Contractor agrees to waive all such rights of subrogation; and {3) the insurance coverage shall be primary insurance as respects the City, its officials, employees, agents and authorized volunteers, or if excess, shall stand in an unbroken chain of coverage excess of Contractor's scheduled
underlying coverage. Any insurance or self-insurance maintained by the City, its officials, employees, agents and authorized volunteers shall be excess of Contractor's insurance and shall not be called upon to contribute with it.
3.13.3.2 Automobile Liability. (1) Such policy shall give the City, its officials, employees, agents and authorized volunteers additional insured status with respect to the ownership, operation, maintenance, use, loading or unloading of any auto owned, leased, hired or borrowed by Contractor or for which Contractor is responsible; (2) all policies shall waive or shall permit Contractor to waive all rights of subrogation which may be obtained by the Contractor or any insurer by virtue of payment of any loss or any coverage provided to any person named as an additional insured pursuant to this Contract, and Contractor agrees to waive all such rights of subrogation; and (3) the insurance coverage shall be primary insurance as respects the City, its officials, employees, agents and authorized volunteers, or if excess, shall stand in an unbroken chain of coverage excess of Contractor's scheduled underlying coverage. Any insurance or self-insurance maintained by the City, its officials, employees, agents and authorized volunteers shall be excess of Contractor's insurance and shall not be called upon to contribute with it in any way.
3.13.3.3 Workers' Compensation and Employer's Liability Coverage. The insurer shall agree to waive all rights of subrogation against the City, its officials, employees, agents and authorized volunteers for losses paid under the terms of the insurance policy which arise from work performed by Contractor.
3.13.3.4 All Coverages. Each insurance policy required by this Contract shall be endorsed to state that: (1) coverage shall not be suspended, voided, reduced or canceled except after thirty (30) days prior written notice by certified mail, return receipt requested, has been given to the City; and (2) any failure to comply with reporting or other provisions of the policies, including breaches of warranties, shall not affect coverage provided to the City, its officials, employees, agents and authorized volunteers.
3.13.4 Separation of Insureds; No Special Limitations. All insurance required by this Section shall contain standard separation of insureds provisions. In addition, such insurance shall not contain any special limitations on the scope of protection afforded to the City, its officials, employees, agents and authorized volunteers.
3.13.5 Deductibles and Self-Insurance Retentions. Any deductibles or self-insured retentions must be declared to and approved by the City. Contractor shall guarantee that, at the option of the City, either: (1) the insurer shall reduce or eliminate such deductibles or selfinsured retentions as respects the City, its officials, employees, agents and authorized volunteers; or (2) the Contractor shall procure a bond or other financial guarantee acceptable to the City guaranteeing payment of losses and related investigation costs, claims and administrative and defense expenses.
3.13.6 Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M.
Best's rating no less than A:VII, licensed to do business in California. Exception may be made for the State Compensation Insurance Fund when not specifically rated.
3.13.7 Verification of Coverage. Contractor shall furnish City with original certificates of insurance and endorsements effecting coverage required by this Contract on forms satisfactory to the City. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf and shall be on forms supplied or approved
by the City. All certificates and endorsements must be received and approved by the City before work commences. The City reserves the right to require complete, certified copies of all required insurance policies, at any time.
3.13.8 Subcontractors. All subcontractors shall meet the requirements of this Section before commencing Work. Contractor shall furnish separate certificates and endorsements for each subcontractor. Subcontractor policies of General Liability insurance shall name the City, its officials, employees, agents and authorized volunteers as additional insureds using form ISO 20 38 04 13 or endorsements providing the exact same coverage. All coverages for subcontractors shall be subject to all of the requirements stated herein except as otherwise agreed to by the City in writing.
3.13.9 Reporting of Claims. Contractor shall report to the City, in addition to Contractor's insurer, any and all insurance claims submitted by Contractor in connection with the Work under this Contract.
3.14 Bond Requirements.
3.14.1 Payment Bond. If required by law or otherwise specifically requested by City and incorporated herein by reference, Contractor shall execute and provide to City concurrently with this Contract a Payment Bond in an amount required by the City and in a form provided or approved by the City. If such bond is required, no payment will be made to Contractor until the bond has been received and approved by the City.
3.14.2 Performance Bond. If specifically requested by City and incorporated herein by reference, Contractor shall execute and provide to City concurrently with this Contract a Performance Bond in an amount required by the City and in a form provided or approved by the City. If such bond is required, no payment will be made to Contractor until the bond has been received and approved by the City.
3.14.3 Bond Provisions. Should, in City's sole opinion, any bond become insufficient or any surety be found to be unsatisfactory, Contractor shall renew or replace the effected bond within (ten) 10 days of receiving notice from City. In the event the surety or Contractor intends to reduce or cancel any required bond, at least thirty (30) days prior written notice shall be given to the City, and Contractor shall post acceptable replacement bonds at least ten (10) days prior to expiration of the original bonds.
No further payments shall be deemed due or will be made under this Contract until any replacement bonds required by this Section are accepted by the City. To the extent, if any, that the Total Contract Price is increased in accordance with the Contract, Contractor shall, upon request of the City, cause the amount of the bond to be increased accordingly and shall promptly deliver satisfactory evidence of such increase to the City. If Contractor fails to furnish any required bond, the City may terminate the Contract for cause.
3.14.4 Surety Qualifications. Only bonds executed by an admitted surety insurer, as defined in California Code of Civil Procedure Section 995.120, shall be accepted. If a California-admitted surety insurer issuing bonds does not meet these requirements, the insurer will be considered qualified if it is in conformance with Section 995.660 of the California Code of Civil Procedure, and proof of such is provided to the City.
3.15 Warranty. Contractor warrants all Work under the Contract (which for purposes of this Section shall be deemed to include unauthorized work which has not been removed and any nonconforming materials incorporated into the Work) to be of good quality and free from any defective or faulty material and workmanship. Contractor shall provide and honor its standard manufacturer’s warranty for the goods provided hereunder per that described in the Proposal . Contractor shall within
ten (10) days after being notified in writing by the City of any defect in the Work or non-conformance of the Work to the Contract, commence and prosecute with due diligence all Work necessary to fulfill the terms of the warranty at its sole cost and expense. Contractor shall act sooner as requested by the 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 its 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-year period, commencing with the date of acceptance of such corrected Work.. The City will hire an independent playground inspector who shall verify whether any corrective actions to the Work are necessary. All costs associated with such corrective actions, 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 the City, regardless of whether or not such warranties and guarantees have been transferred or assigned to the City by separate agreement and Contractor agrees to enforce such warranties and guarantees, if necessary, on behalf of the City. In the event that Contractor fails to perform its obligations under this Section, or under any other warranty or guaranty under this Contract, to the reasonable satisfaction of the City, the 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 the City for any expenses incurred hereunder upon demand.
3.16 Employee/Labor Certifications.
3.16.1 Contractor's Labor Certification. By its signature hereunder, Contractor certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Worker's Compensation or to undertake self-insurance in accordance with the provisions of that Code and agrees to comply with such provisions before commencing the performance of the Work. A certification form for this purpose and incorporated herein by reference, shall be executed simultaneously with this Contract.
3.16.2 Equal Opportunity Employment. Contractor represents that it is an equal opportunity employer and that it shall not discriminate against any employee or applicant for employment because of race, religion, color, national origin, ancestry, sex, age or other interests protected by the State or Federal Constitutions. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination.
3.16.3 Verification of Employment Eligibility. By executing this Contract, Contractor verifies that it fully complies with all requirements and restrictions of state and federal law respecting the employment of undocumented aliens, including, but not limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to time, and shall require all subcontractors and subsubcontractors to comply with the same.
3.17 General Provisions.
3.17.1 City's Representative. The City hereby designates the City Manager, or his or her designee, to act as its representative for the performance of this Contract ("City's Representative").
City's Representative shall have the power to act on behalf of the City for all purposes under this Contract. Contractor shall not accept direction or orders from any person other than the City's Representative or his or her designee.
3.17.2 Contractor's Representative. Before starting the Work, Contractor shall submit in writing the name, qualifications and experience of its proposed representative who shall be subject to the review and approval of the City ("'Contractor's Representative"). Following approval by the City, Contractor's Representative shall have full authority to represent and act on behalf of Contractor for all purposes under this Contract. Contractor's Representative shall supervise and direct the Work, using his best skill and attention, and shall be responsible for all construction means, methods, techniques, sequences and procedures and for the satisfactory coordination of all portions of the Work under this Contract. Contractor's Representative shall devote full time to the Project and either he or his designee, who shall be acceptable to the City, shall be present at the Work site at all times that any Work is in progress and at any time that any employee or subcontractor of Contractor is present at the Work site. Arrangements for responsible supervision, acceptable to the City, shall be made for emergency Work which may be required. Should Contractor desire to change its Contractor's Representative, Contractor shall provide the information specified above and obtain the City's written approval.
3.17.3 Termination. This Contract may be terminated by City at any time, either with our without cause, by giving Contractor fifteen (15) days advance written notice. In the event of termination by City for any reason, City shall pay Contractor for all Work performed (including all goods produced) up to the effective date of termination. In the event of breach of the Contract by Contractor, City may terminate the Contract immediately upon notice if Contractor fails to cure the breach within 5 days of its receipt of notice, and City may pursue any available recourse against Contractor. Contractor may not terminate this Contract except for cause. In the event this Contract is terminated in whole or in part as provided, City may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated. Further, if this Contract is terminated as provided, City may require Contractor to provide all finished or unfinished documents, data, diagrams, drawings, materials or other matter prepared or built by Contractor in connection with its performance of this Contract.
3.17.4 Contract Interpretation. Should any question arise regarding the meaning or import of any of the provisions of this Contract or written or oral instructions from City, the matter shall be referred to City's Representative, whose decision shall be binding upon Contractor.
3.17.5 Anti-Trust Claims. This provIs1on shall be operative if this Contract is applicable to California Public Contract Code Section 7103.5. In entering into this Contract to supply goods, services or materials, Contractor hereby offers and agrees to assign to the City all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Section 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 pursuant to the Contract. This assignment shall be made and become effective at the time the City tender final payment to Contractor, without further acknowledgment by the Parties.
3.17.6 Notices. All notices hereunder and communications regarding interpretation of the terms of the Contract or changes thereto shall be provided by the mailing thereof by registered or certified mail, return receipt requested, postage prepaid and addressed as follows:
CONTRACTOR:
Landscape Structures, Inc.
P.O. Box 86
Minneapolis, MN 55486
Attn:
CITY:
City of Arroyo Grande
300 E. Branch St.,
Arroyo Grande, CA 93420
Attn: Matthew Downing, City Manager
Any notice so given shall be considered received by the other Party three (3) days after deposit in the U.S. Mail as stated above and addressed to the Party at the above address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.
3.17.7 Time of Essence. Time is of the essence in the performance of this Contract.
3.17.8 Assignment Forbidden. Neither City nor Contractor shall, either voluntarily or by action of law, assign or transfer this Contract or any obligation, right, title or interest assumed by it herein without the prior written consent of the other party. If a Party attempts an assignment or transfer of this Contract or any obligation, right, title or interest herein, the other Party may, at its option, terminate and revoke the Contract and shall thereupon be relieved from any and all obligations to the other Party or its assignee or transferee.
3.17.9 No Third-Party Beneficiaries. There are no intended third-party beneficiaries of any right or obligation assumed by the Parties.
3.17.10 Laws, Venue, and Attorneys' Fees. This Agreement shall be interpreted in accordance with the laws of the State of California. If any action is brought to interpret or enforce any term of this Agreement, the action shall be brought in a state or federal court situated in the County of San Luis Obispo, State of California.
3.17.11 Counterparts. This Contract may be executed in counterparts, each of which shall constitute an original.
3.17.12 Successors. The Parties do for themselves, their heirs, executors, administrators, successors, and assigns agree to the full performance of all of the provisions contained in this Contract.
3.17.13 [Reserved]
3.17.14 Solicitation. Contractor maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Contractor or a bona fide agency, to solicit or secure this Contract. Further, Contractor warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Contractor or a bona fide agency, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Contract. For breach or violation of this warranty, City shall have the right to terminate this Contract without liability.
3.17.15 Conflict of Interest. Contractor maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Contractor or a bona fide agency, to solicit or secure this Agreement. Further, Contractor warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Contractor or a bona fide agency, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement.
For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Contract, no official, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Contract, or obtain any present or anticipated material benefit arising therefrom. In addition, Contractor agrees to file, or to cause its employees or subcontractors to file, a Statement of Economic Interest with the City's Filing Officer as required under state law in the performance of the Work.
3.17.16 Certification of License.
3.17.16.1 Contractor certifies that as of the date of execution of this Contract, Contractor has a current contractor's license of the classification indicated below under Contractor's signature.
3.17.16.2 Contractors are required by law to be licensed and regulated by the Contractors' State License Board which has jurisdiction to investigate complaints against contractors if a complaint regarding a patent act or omission is filed within four (4) years of the date of the alleged violation. A complaint regarding a latent act or omission pertaining to structural defects must be filed within ten (10) years of the date of the alleged violation. Any questions concerning a contractor may be referred to the Registrar, Contractors' State License Board, P.O. Box 26000, Sacramento, California 95826.
3.17.17 Authority to Enter Contract. Each Party warrants that the individuals who have signed this Contract have the legal power, right and authority to make this Contract and bind each respective Party.
3.17.18 Entire Contract: Modification. This Contract contains the entire agreement of the Parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. This Contract may only be modified by a writing signed by both Parties.
3.17.19 Non-Waiver. None of the provisions of this Agreement shall be considered waived by either party, unless such waiver is specifically specified in writing.
3.17.20 City's Right to Employ Other Contractors. City reserves right to employ other contractors in connection with this Project or other projects.
3.17.21 Federal Requirements. Coronavirus State and Local Fiscal Recovery Funds ("SLFRF") will be used to fund all or a portion of this Contract. The Contractor shall comply with all federal requirements including, but not limited to, the following:
• Sections 602 and 603 of the Social Security Act as added by Section 9901 of the American Rescue Plan Act of 2021, U.S. Department of the Treasury Coronavirus State and Local Fiscal Recovery Fund Award Terms and Conditions, Treasury's Final Rule, and SLFRF reporting requirements, as applicable (collectively, the "SLFRF Compliance Requirements"). The SLFRF Compliance Requirements are expressly incorporated herein by reference.
• 2 C.F.R. Part 200 - Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, which is expressly incorporated herein by reference. • Federal Contract Provisions attached hereto as Exhibit "A" and incorporated herein by reference.
Subcontracts, if any, shall contain a provision making them subject to all of the provisions stipulated in the Contract, including but not limited to, SLFRF Compliance Requirements, 2 C.F.R.
Part 200, and the Federal Contract Provisions. With respect to any conflict between such federal requirements and the terms herein and/or the provisions of state law and except as otherwise required under federal law or regulation, the more stringent requirement shall control.
Contractor agrees to accept any additional conditions governing the use of funds from the SLFRF or other funding source as may be required by executive order, federal, state or local statute, ordinance, rule or regulation or by policy announced by the City.
Contractor shall cooperate with City, including providing any necessary documentation and records, in order for City to comply with the federal requirements in Exhibit A.
Contractor will maintain all records pertaining to this Project for a period of five (5) years following completion of the Project
[SIGNATURES ON NEXT PAGE]
SIGNATURE PAGE FOR CONSTRUCTION CONTRACT
BETWEEN THE ARROYO GRANDE
AND LANDSCAPE STRUCTURES, INC.
IN WITNESS WHEREOF, the Parties have entered into this Agreement as of the ___ day of ___________, 20___.
ARROYO GRANDE LANDSCAPE STRUCTURES, INC.
By: By:
Matthew Downing
City Manager Its:
Printed Name: _
ATTEST:
By:
Jessica Matson
City Clerk
APPROVED AS TO FORM:
By:
Isaac Rosen
City Attorney
“Exhibit A”:
PARKSIDE PARK PLAY STRUCTURE - PW 2024-09
"EXHIBIT B A"
Credit Terms Net 30 from Shipment
6-8 Week from Full and Complete Order
Submittal
Lead Time
Expiration Date 6/13/2025
Created Date 5/15/2025
Quote Number 00000336
End Account Owner City Of Arroyo Grande
Opportunity Name Parkside Park Playground
Freight $7,800.00
Labor $106,930.00
Product $100,460.00
- Quote is for line items listed below only.
- Additional work, not listed below, will require a change order, or separate proposal.
Exclusions &
Additional Notes
A 3% service fee will be added to the Total Proposal Amount with the use of a Credit Card for Payment.
Engineering and Structural Calculation are NOT included unless stated/quoted otherwise.
Direct Bury is assumed all projects unless advised otherwise by the client. 24 Hour call prior Matt Norris 805-266-6117
401 Bakeman Lane
Arroyo Grande, CA 93420
United States
Ship To
Ship To Name Central Coast Playgrounds
1375 Ash Street
Arroyo Grande, CA 93420
United States
Bill To
Bill To Name City of Arroyo Grande
Exclusions & Additional Notes
WE ARE PLEASED TO SUBMIT THIS PROPOSAL TO PROVIDE THE FOLLOWING ITEMS:
Product Item No Line Item Description Quantity Sales Price Total Price Custom
Playground
Equipment
1195710-02-03
Custom Nature-Base 2-12 Playground Design, including Discovery Tree Playground Structure, Toddler Playhouse, Inclusive Sensory Play Center, Toodler/Belt Swing Combo Swing Set.
1.00 $100,460.00 $100,460.00
Surfacing
Provide and Install up to 1850 SF of SpectraPour Rubberized Surfacing, thickness to be compliant with CFH of play equipment.
Standard Colors, 67%CLR/33% BLK Mix. No Graphics.
1.00 $40,334.00 $40,334.00
Mobilization Offloading, Portable Bathroom, Temp Security Fencing, Equipment Moves 1.00 $3,465.00 $3,465.00
Demo Remove and Dispose of all existing play equipment, including the main play structure and swing set. 1.00 $7,808.00 $7,808.00
Demo Demo and Dispose of 16' of Existing Concrete Play Curb. 1.00 $1,386.00 $1,386.00 Demo Demo and Dispose of up to 1850 SF of Existing Rubberized Surfacing. 1.00 $10,568.00 $10,568.00 Site Work Provide and Install up to 1850 SF of Compacted Base Subsurface 4" Depth. 1.00 $8,455.00 $8,455.00
Site Work Provide and install up to 11 LF of new Concrete Play Curb for Bump Out Area. 1.00 $1,733.00 $1,733.00
Installation Installation of all Playground Equipment shown on Design #1195710-02-02 1.00 $26,657.00 $26,657.00
Freight 120-25-107 Shipping to Arroyo Grande, CA 1.00 $7,800.00 $7,800.00 Bonding Payment and Performance Bonds 1.00 $6,524.00 $6,524.00
Credit Terms Net 30 from Shipment
6-8 Week from Full and Complete Order
Submittal
Lead Time
Expiration Date 6/13/2025
Created Date 5/15/2025
Quote Number 00000336
End Account Owner City Of Arroyo Grande
Opportunity Name Parkside Park Playground
Grand Total $223,980.25
Tax $8,790.25
Tax Rate 8.75%
Opportunity Owner Nate Stutz
ATTACHMENT 2
CITY OF ARROYO GRANDE • 300 E. Branch Street • Arroyo Grande, California 93420 Phone: (805) 473-5400 • Fax: (805) 473-0386 • E-mail: [email protected] • Website: www.arroyogrande.org
CITY OF
ARROYO GRANDE CALIFORNIA
Parkside Park Play Structure
PW 2024-09
We Want to Hear From You!
You are receiving this letter because you are a resident of the Parkside Village Assessment District.
The City wants your input on your new playground equipment for Parkside Park.
The City of Arroyo Grande publicly solicited proposals from qualified firms to update the Parkside Park Playground including removal of existing playground equipment, design and installation of new playground equipment, and replacement of the deteriorated rubber surfacing. The City received proposals that met the criteria required. Now it is up to you to select your favorite playground design! Please visit this google form at https://tinyurl.com/ParksidePlayground or the QR Code to view six (6) playground design and vote for your favorite. Vote for the playground equipment / layout that you like the best. Minor alterations may occur in the final products. Other colors may be available for playground equipment. Color schemes may be discussed after the playground design vote is completed.
You will be asked to provide your address on the Google Form. Only one vote from each address will be counted.
This Google Form will be open for your votes from May 23, 2025, to June 8, 2025. Please don’t miss this opportunity to share your input on the playground equipment coming to Parkside Park.
We are excited to move forward with this project and appreciate your participation. Please contact me if you have any questions or if you are having difficulty voting.
Theresa Wren, Capital Improvement Projects Manager
[email protected]
805-473-5441
ATTACHMENT 3
ATTACHMENT 4
Item 9.i.
MEMORANDUM
TO: City Council
FROM: Bill Robeson, Assistant City Manager/Public Works Director BY: Shane Taylor, Utilities Manager
SUBJECT: Monthly Water Supply and Demand Update
DATE: June 24, 2025
RECOMMENDATION:
Receive and file the Monthly Water Supply and Demand Update.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
Approximately two (2) hours of staff time is required to prepare the report.
BACKGROUND:
The City of Arroyo Grande’s water entitlements are calculated on a water year that began April 1, 2025. The current water supply for water 2025/2026 includes:
2,290 Acre Feet (AF) from Lopez Lake Reservoir/Lopez contract entitlement. The current modeled, safe yield is 357 AF of groundwater from the Santa Maria River Groundwater Basin, with an entitlement of 1,323 AF. An additional 160 AF of groundwater is available from the Pismo formation from existing City well systems.
In addition to the annual Lopez Lake Reservoir contract entitlement, the City will have 689.69 AF of stored Lopez water, which is unused entitlement from water year 2024/2025.
The City also accepted an offer to purchase 470.33 AF of surplus Lopez water. The surplus water cost is $55,146.74 or $117.14 per Acre Feet (AF).
The total supply from Lopez Lake Reservoir for this water year is 3,450 AF. The predicted water use for the 2025/2026 water year is 2,200 AF. The monthly water use for the City in May was 202.5 AF.
The supply of the additional 1,160.02 AF of Lopez water will be used first to prevent losing it due to a potential 100% capacity Lopez Lake Reservoir spill over that occurred in 2023
Item 9.i.
City Council
Monthly Water Supply and Demand Update
June 24, 2025
and 2024. This allows for maximum banking of unused entitlement for this water year.
Attachment 6 details the stored and surplus water for water year 2024/2025.
ANALYSIS OF ISSUES:
The United States Drought Monitor, as of June 13, 2025, shows San Luis Obispo County is abnormally dry. Rainfall for the period of July 1, 2024, through June 13, 2025, is 9.35 inches at the Corporate Yard rain gauge. Lopez Lake is 90.4% as of June 13, 2025.
The deep well index for the 2nd quarter of 2025 was completed on April 14, 2025, and is
12.07 feet above sea level, which is 4.57 feet above the threshold valve. The current deep well index is 0.17 feet lower than January 2025, and 1.74 feet lower than April 2024.
On January 15, 2025, in response to a preliminary injunction issued by the United States District Court to the County of San Luis Obispo, Lopez Lake downstream releases were increased from 2.0 million gallons per day to 5.1 million gallons per day. The County has prepared an updated projection that reflects the increased release rate. The impact on Lopez Lake storage with this release level is shown in Attachment 2.
The increased release rate does not currently impact the City’s contract entitlement (how much water the City receives) from Lopez Lake. The month-to-month comparisons at this time show a negligible reduction due to Lopez Lake’s high volume (June, 18, 2025 -90% of capacity) into the dry season.. The City will continue working with the County to develop a multi-year projection showing how increased downstream releases will likely impact Lopez Lake storage levels.
Attachment 5, titled 2011 to 2024 Actual Storage vs. Predicted Storage model, provides past annual water storage information from 2011 to 2024. The blue “Actual Storage (AF)” line on the graph shows the water storage levels in Lake Lopez over 13 years. The dark orange line shows what water storage levels would have been if the current court-ordered release rates were in effect during this period. The dashed lines denote specific water storage levels like spillway or maximum capacity (49.476 AF) and minimum pool (1,690 AF), or essentially no potable water.
The model shows:
Out of the 13 years, 9 of those years would activate the Low Reservoir Response Plan (LRRP) – below 20,000 AF, which limits water consumption. Approximately 3 years of significant water quality issues. Approximately 2 years of no potable water.
The County has appealed the preliminary injunction. The City and all other Zone 3 contractors will continue to work with the County to assess and report the impact on our water supply from Lopez Lake until litigation is resolved.
Item 9.i.
City Council
Monthly Water Supply and Demand Update
June 24, 2025
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Receive and file the report, or
2. Provide other directions for staff.
ADVANTAGES:
The report provides the City Council and the public with the current and projected water supply and demand conditions.
ENVIRONMENTAL REVIEW:
No environmental review is required for this item.
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2.
ATTACHMENTS:
1. Monthly Operations Report for May
2. Lopez Lake Reservoir Storage Projection
3. Previous Year Water Use Comparison
4. Deep Well Index Levels for 2nd Quarter
5. 2011 to 2024 Actual Storage vs. Predicted Storage
6. 2024-2025 End of Water Year Stored Project Water and Surplus Water Generated (April 2024 – March 2025)
Attachment 6
Item 9.j.
MEMORANDUM
TO: City Council
FROM: Brian Pedrotti, Director of Community Development BY: Andrew Perez, Planning Manager
SUBJECT: General Plan Update Progress Report – June 2025 DATE: June 24, 2025
RECOMMENDATION:
Receive and file a progress report on the Comprehensive General Plan Update.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The financial and personnel impacts associated with this progress report are included in the budget for the Comprehensive General Plan Update.
BACKGROUND:
The most recent progress report was provided for the City Council on May 27, 20251. The report described staff’s audit of existing General Plan goals, policies, and implementation measures. The policies identified to be carried forward will serve as the starting point for developing policy for each individual element to be updated. The report also described efforts to update the document template with regards to font, colors, style, and placement of graphics and illustrations.
ANALYSIS OF ISSUES:
City staff and its consultants have prepared administrative drafts of the Climate Change Vulnerability Assessment (CCVA) and Emergency Evacuation Analysis, both of which are required to inform the update of the Safety Element pursuant to State law. The City is also currently updating the local hazard mitigation plan in collaboration with the other San Luis Obispo County cities and the County.
The CCVA identifies the risks climate change poses to the City and the specific geographic areas at risk from climate change. Understanding the city’s vulnerabilities to climate change provides a foundation upon which climate adaptation goals, policies, and implementation programs can be developed for the Safety Element. The evacuation
1 https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=14750
Item 9.j.
City Council
General Plan Update Progress Report – June 2025
June 24, 2025
analysis evaluates the transportation system’s capacity during a potential hazard scenario that requires citywide evacuation. The hazard scenarios that will be evaluated include inundation from a potential failure of the Lopez Reservoir dam, wildfires, and a major earthquake. The results of this analysis will be used to develop goals, policies, and implementation actions in the Safety Element update. These policies can also help identify potential improvements in evacuation capacity and resilience throughout Arroyo Grande.
In addition to the comprehensive General Plan Update, the Council also authorized staff to update the City’s Climate Action Plan (CAP) as part of this project. The CAP is a longrange plan to reduce greenhouse gas (GHG) emissions from City government operations and community activities and prepare for the anticipated effects of climate change. The initial step in the update process involved obtaining data to complete a community GHG emissions inventory update for the City. Data obtained from PG&E, SoCal Gas, the South San Luis Obispo County Sanitation District, South County Sanitary Service, and the San Luis Obispo Council of Governments will be used to establish a baseline GHG benchmark by which future reduction targets will be measured against.
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Receive and file this progress report on the Comprehensive General Plan Update; or
2. Provide other direction to staff
ADVANTAGES:
Regular updates to the City Council will inform decision-makers and the community on the status of the project.
DISADVANTAGES:
None identified.
ENVIRONMENTAL REVIEW:
No environmental review is required to receive and file this progress report on the General Plan Update because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, Cal.
Code Regs., tit. 14, §§ 15060, subd. (c)(2)-(3), 15378.).
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2.
Item 10.a.
MEMORANDUM
TO: City Council
FROM: Bill Robeson, Assistant City Manager/Public Works Director BY: Theresa Wren, Capital Improvement Projects Manager
SUBJECT: Directing the Levy of Annual Assessments for Fiscal Year 2025-26 DATE: June 24, 2025
RECOMMENDATION:
1) Conduct a public hearing for the levy and collection of assessments for the Parkside Village Assessment District, Grace Lane Assessment District, and Arroyo Grande Landscaping and Lighting Assessment District No. 1 within Tract 1769; 2) Adopt a Resolution confirming the diagram and assessments, and directing the levy of the annual assessment related to the Parkside Village Assessment District pursuant to the Landscaping and Lighting Act of 1972 (Streets and Highways Code Sections 22500 et. seq.) for Fiscal Year 2025-26;
3) Adopt a Resolution confirming the diagram and assessments, and directing the levy of the annual assessments related to the Grace Lane Assessment District pursuant to the Landscaping and Lighting Act of 1972 (Streets and Highways Code Sections 22500 et. seq.) for Fiscal Year 2025-26; and
4) Adopt a Resolution confirming the diagram and assessments, and directing the levy of the annual assessments related to the Arroyo Grande Landscaping and Lighting Assessment District No. 1 within Tract 1769, pursuant to the Landscaping and Lighting Act of 1972 (Streets and Highways Code Sections 22500 et. seq.) for Fiscal Year 2025-
26. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
By adopting the Resolutions, $56,298 will be collected for Fiscal Year (FY) 2025-26 for the three assessment districts to provide landscaping and other specified maintenance.
The assessments are placed on the affected property owner's property tax bill each year.
Item 10.a.
City Council
Directing the Levy of Annual Assessments for Fiscal Year 2025-26 June 24, 2025
BACKGROUND:
At the May 27, 20251, City Council meeting, the City Council approved the Engineer's Reports and adopted Resolutions declaring its intention to levy and collect assessments for the Parkside Village Assessment District, Grace Lane Assessment District, and the Arroyo Grande Landscaping and Lighting Assessment District No. 1 within Tract No. 1769, and set a public hearing for June 24, 2025. The anticipated assessments are as follows:
Parkside Village (Tract 2310) Assessment District, the proposed annual assessments are:
13 parcels at $446 per parcel
52 parcels at $734 per parcel
TOTAL: 65 parcels total $43,966 annually
Grace Lane (Tract 2236) Assessment District, the proposed annual assessments are
15 parcels at $460 per parcel
4 parcels at $608 per parcel
TOTAL: 19 parcels total $9,332 annually
Landscaping and Lighting Assessment District No. 1, within Tract 1769, the proposed annual assessments are:
30 parcels at $100 per parcel
TOTAL: 30 parcels total $3,000 annually
ANALYSIS OF ISSUES:
The California Streets and Highways Code Sections 22500 et seq. (Landscaping and Lighting Act of 1972) (Act), establishes one of the processes by which local governmental agencies form assessment districts to finance the costs and expenses of landscaping and lighting public areas. The final process includes a public hearing, which allows all interested parties to hear and be heard. After the public hearing, the City Council may adopt Resolutions (Attachments 1, 2, and 3) confirming the assessments, which constitute the levy of the assessments for the 2025-26 fiscal year. Upon fulfilling these requirements, the City must submit the Resolutions to the County of San Luis Obispo for inclusion of the assessments on the FY 2025-26 property tax roll. The assessments collected for each assessment district fund items such as monthly landscape maintenance, annual fire suppression/fuel reduction, savings for anticipated drainage structure maintenance and improvements, and general landscaping cleanup projects, as needed. Each associated Engineer's Report provides a description of improvements.
1 https://pub-arroyogrande.escribemeetings.com/Meeting.aspx?Id=2ab110a5-a61e-423b-9c39- 5cd101fa6826&lang=English&Agenda=Agenda&Item=55&Tab=attachments
Item 10.a.
City Council
Directing the Levy of Annual Assessments for Fiscal Year 2025-26 June 24, 2025
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Adopt Resolutions approving the levy to collect the annual assessments for the Parkside Village Assessment District, Grace Lane Assessment District, and Arroyo Grande Landscaping and Lighting Assessment District No. 1 within Tract 1769 for Fiscal Year 2025-26;
2. Modify and adopt the Resolutions; or
3. Provide other direction to staff.
ADVANTAGES:
Adoption of the Resolutions will be in compliance with the Act and allow the City to move forward with the process to collect assessments and perform the work identified in the Engineer's Report for each assessment district.
DISADVANTAGES:
No disadvantages for the proposed actions have been identified for this fiscal year.
ENVIRONMENTAL REVIEW:
Adoption of the Resolutions to levy and collect annual assessments is not a project subject to the California Environmental Quality Act ("CEQA") because it has no potential to result in either a direct, or reasonably foreseeable, indirect, physical change in the environment. (State CEQA Guidelines,§§ 15060, subd. (b)(2)-(3), 15378. The actions merely constitute an administrative activity of the City. Alternatively, the adoption of resolutions to levy and collect annual assessments is exempt from CEQA on that basis that it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. (State CEQA Guidelines, § 15061, subd. (b)(3).) The levy and collection of assessments applies to maintenance of existing improvements and does not result in new construction or physical change in the environment.
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City's website in accordance with Government Code Section 54954.2. The Resolutions adopted by the City Council on May 27, 2025, declaring its intention to levy and collect annual assessments for all three (3) Assessment Districts in Fiscal Year 2025-26 were published in The New Times on Thursday, June 12, 2025 providing notice of the public hearing scheduled June 24, 2025.
ATTACHMENTS:
1. Resolution - Parkside Village
2. Resolution - Grace Lane
3. Resolution - District 1, Tract 1769
ATTACHMENT 1
RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARROYO GRANDE CONFIRMING THE DIAGRAM AND
ASSESSMENTS, AND DIRECTING THE LEVY OF THE
ANNUAL ASSESSMENTS RELATED TO THE PARKSIDE
VILLAGE ASSESSMENT DISTRICT PURSUANT TO THE
LANDSCAPING AND LIGHTING ACT OF 1972 (STREETS
AND HIGHWAYS CODE SECTIONS 22500 ET. SEQ.) FOR
FISCAL YEAR 2025-2026
WHEREAS, on November 8, 2005, the City Council of the City of Arroyo Grande adopted Resolution No. 3888 ordering the formation of the Parkside Village Assessment District under Part 2 of Division 15 of the California Streets and Highways Code 22500- 22679 (Landscaping and Lighting Act of 1972), which allows local governmental agencies to form assessment districts for the purpose of financing the costs and expenses of landscaping and lighting public areas; and
WHEREAS, the City Council, at its meeting of May 27, 2025, approved Resolution No. 5362 approving the Engineer's Report and declaring its intention to levy and collect annual assessments for the Parkside Village Assessment District for Fiscal Year 2025- 2026 and set a public hearing for June 24, 2025, for the Parkside Village Assessment District; and
WHEREAS, notice was duly published in a newspaper of general circulation at least 10 days prior to the date of the public hearing; and
WHEREAS, a public hearing to levy the annual assessment of the Parkside Village Assessment District was held June 24, 2025, at the City Council Chambers, 215 E.
Branch Street, Arroyo Grande, California, 93420 and the City Council took public testimony from all interested persons as to the levy of the annual assessment for the Parkside Village Assessment District; and
WHEREAS, pursuant to Streets and Highways Code Section 22631, the City Council is authorized to levy this assessment; and
WHEREAS, pursuant to Streets and Highways Code Section 22646, the assessments herein confirmed by the City Council shall be collected on the secured property tax roll and collected at the same time and in the same manner as County taxes are collected.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Arroyo Grande, as follows:
1. The foregoing recitals are true and correct and are incorporated herein.
RESOLUTION NO.
PAGE 2
2. The City Council, having been informed with the Engineer’s Report, supporting documentation, and presentations from staff and conducted the public hearing hereby confirms the diagram and the assessments for Fiscal Year 2025-2026.
3. The annual levy for the maintenance of Parkside Village Assessment District, located as shown in the approved Engineer's Report for the Parkside Village Assessment District is hereby ordered and the assessment of $446 or $734 per parcel for the Fiscal Year 2025-2026 as indicated on Exhibit "A" attached hereto and incorporated herein by this reference, is hereby confirmed.
4. Adoption of this Resolution shall constitute the levy of an assessment for Fiscal Year 2025-2026 and the City Clerk shall file the diagram and assessments with the County of San Luis Obispo Auditor.
5. Adoption of this Resolution to levy and collect annual assessments is not a project subject to the California Environmental Quality Act ("CEQA") because it has no potential to result in either a direct, or reasonably foreseeable, indirect, physical change in the environment. (State CEQA Guidelines,§§ 15060, subd. (b)(2)-(3), 15378. The actions merely constitute an administrative activity of the City. Alternatively, the adoption of resolutions to levy and collect annual assessments is exempt from CEQA on that basis that it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. (State CEQA Guidelines, § 15061, subd. (b)(3).) The levy and collection of assessment fees applies to maintenance of existing improvements and does not result in new construction or physical change in the environment.
6. This Resolution shall be effective immediately upon its adoption.
On motion of Council Member , seconded by Council Member , and by the following roll call vote, to wit:
AYES:
NOES:
ABSENT:
the foregoing Resolution was passed and adopted this 24th day of June 2025.
RESOLUTION NO.
PAGE 3
CAREN RAY RUSSOM, MAYOR
ATTEST:
JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:
MATTHEW DOWNING, CITY MANAGER
APPROVED AS TO FORM:
ISAAC ROSEN, CITY ATTORNEY
RESOLUTION NO.
PAGE 4
EXHIBIT “A”
SAN LUIS OBISPO COUNTY AUDITOR-CONTROLLER
PARKSIDE VILLAGE TRACT 2310 ASSESSMENTS
FUND NO. 1893
FOR TAX ROLL YEAR 2025-26
LOT #
ASSESSOR'S PARCEL
NUMBER (APN) CHARGE
1 077255002 $ 446.00
2 077255003 $ 446.00
3 077255004 $ 446.00
4 077255005 $ 446.00
5 077255006 $ 446.00
6 077255007 $ 446.00
7 077255008 $ 446.00
8 077255009 $ 446.00
9 077255010 $ 446.00
10 077255011 $ 446.00
11 077255012 $ 446.00
12 077255013 $ 446.00
13 077255014 $ 446.00
14 077255015 $ 734.00
15 077255016 $ 734.00
16 077255017 $ 734.00
17 077255018 $ 734.00
18 077255019 $ 734.00
19 077255020 $ 734.00
20 077255021 $ 734.00
21 077255022 $ 734.00
22 077255023 $ 734.00
23 077255024 $ 734.00
26 077255027 $ 734.00
27 077255028 $ 734.00
28 077255029 $ 734.00
29 077255030 $ 734.00
30 077255031 $ 734.00
31 077255032 $ 734.00
32 077255033 $ 734.00
33 077255034 $ 734.00
34 077255035 $ 734.00
35 077255036 $ 734.00
RESOLUTION NO.
PAGE 5
LOT #
ASSESSOR'S PARCEL
NUMBER (APN) CHARGE
36 077255037 $ 734.00
37 077255038 $ 734.00
38 077255039 $ 734.00
39 077255040 $ 734.00
40 077255041 $ 734.00
41 077255042 $ 734.00
42 077255043 $ 734.00
43 077255044 $ 734.00
44 077255045 $ 734.00
45 077255046 $ 734.00
46 077255047 $ 734.00
47 077255048 $ 734.00
48 077255049 $ 734.00
49 077255050 $ 734.00
50 077255051 $ 734.00
51 077255052 $ 734.00
52 077255053 $ 734.00
53 077255054 $ 734.00
54 077255055 $ 734.00
55 077255056 $ 734.00
56 077255057 $ 734.00
57 077255058 $ 734.00
58 077255059 $ 734.00
59 077255060 $ 734.00
60 077255061 $ 734.00
61 077255062 $ 734.00
62 077255063 $ 734.00
63 077255064 $ 734.00
64 077255065 $ 734.00
65 077255066 $ 734.00
66 077255067 $ 734.00
67 077255068 $ 734.00
TOTAL $43,966.00
ATTACHMENT 2
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ARROYO GRANDE CONFIRMING THE DIAGRAM
AND ASSESSMENTS, AND DIRECTING THE LEVY OF
THE ANNUAL ASSESSMENTS RELATED TO THE
GRACE LANE ASSESSMENT DISTRICT PURSUANT TO
THE LANDSCAPING AND LIGHTING ACT OF 1972
(STREETS AND HIGHWAYS CODE SECTIONS 22500 ET.
SEQ.) FOR FISCAL YEAR 2025-2026
WHEREAS, on November 28, 2006, the City Council of the City of Arroyo Grande adopted Resolution No. 3976 ordering the formation of the Grace Lane Assessment District under Part 2 of Division 15 of the California Streets and Highways Code 22500- 22679 (Landscaping and Lighting Act of 1972), which allows local governmental agencies to form assessment districts for the purpose of financing the costs and expenses of landscaping and lighting public areas; and
WHEREAS, the City Council, at its meeting of May 27, 2025, approved Resolution No. 5363 approving the Engineer's Report and declaring its intention to levy and collect annual assessments for the Grace Lane Assessment District for Fiscal Year 2025-2026 and set a public hearing for June 24, 2025, for the Grace Lane Assessment District; and WHEREAS, notice was duly published in a newspaper of general circulation at least 10 days prior to the date of the public hearing; and
WHEREAS, a public hearing to levy the annual assessment of the Grace Lane Assessment District was held June 24, 2025, at the City Council Chambers, 215 E.
Branch Street, Arroyo Grande, California, 93420 and the City Council took public testimony from all interested persons as to the levy of the annual assessment for the Grace Lane Assessment District; and
WHEREAS, pursuant to Streets and Highways Code Section 22631, the City Council is authorized to levy this assessment; and
WHEREAS, pursuant to Streets and Highways Code Section 22646, the assessments herein confirmed by the City Council shall be collected on the secured property tax roll and collected at the same time and in the same manner as County taxes are collected.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Arroyo Grande, as follows:
1. The foregoing recitals are true and correct and are incorporated herein.
2. The City Council, having been informed with the Engineer’s Report, supporting
RESOLUTION NO.
PAGE 2
documentation, and presentations from staff and conducted the public hearing hereby confirms the diagram and the assessments for Fiscal Year 2025-2026.
3. The annual levy for the maintenance of Grace Lane Assessment District, located as shown in the approved Engineer's Report for the Grace Lane Assessment District is hereby ordered and the assessment of $460 for lots 1 through 15 and $608 for lots 16 through 19 for the Fiscal Year 2025-2026 as indicated on Exhibit "A" attached hereto and incorporated herein by this reference, is hereby confirmed.
4. Adoption of this Resolution shall constitute the levy of an assessment for Fiscal Year 2025-2026 and the City Clerk shall file the diagram and assessments with the County of San Luis Obispo Auditor.
5. Adoption of this Resolution to levy and collect annual assessments is not a project subject to the California Environmental Quality Act ("CEQA") because it has no potential to result in either a direct, or reasonably foreseeable, indirect, physical change in the environment. (State CEQA Guidelines,§§ 15060, subd. (b)(2)-(3), 15378. The actions merely constitute an administrative activity of the City. Alternatively, the adoption of resolutions to levy and collect annual assessments is exempt from CEQA on that basis that it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. (State CEQA Guidelines, § 15061, subd. (b)(3).) The levy and collection of assessment fees applies to maintenance of existing improvements and does not result in new construction or physical change in the environment.
6. This Resolution shall be effective immediately upon its adoption.
On motion of Council Member ___ , seconded by Council Member __ , and by the following roll call vote, to wit:
AYES:
NOES:
ABSENT:
The foregoing Resolution was passed and adopted this 24th day of June 2025.
RESOLUTION NO.
PAGE 3
CAREN RAY RUSSOM, MAYOR
ATTEST:
JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:
MATTHEW DOWNING, CITY MANAGER
APPROVED AS TO FORM:
ISAAC ROSEN, CITY ATTORNEY
RESOLUTION NO.
PAGE 4
EXHIBIT “A”
SAN LUIS OBISPO COUNTY AUDITOR-CONTROLLER
GRACE LANE TRACT 2236 ASSESSMENTS
FUND NO. 1895
FOR TAX ROLL YEAR 2025-26
LOT # ASSESSOR'S PARCEL
NUMBER (APN) CHARGE
1 007019002 $ 460.00
2 007019003 $ 460.00
3 007019004 $ 460.00
4 007019005 $ 460.00
5 007019006 $ 460.00
6 007019007 $ 460.00
7 007019008 $ 460.00
8 007019035 $ 460.00
9 007019036 $ 460.00
10 007019037 $ 460.00
11 007019012 $ 460.00
12 007019014 $ 460.00
13 007019015 $ 460.00
14 007019016 $ 460.00
15 007019017 $ 460.00
16 007019034 $ 608.00
17 007019033 $ 608.00
18 007019025 $ 608.00
19 007019030 $ 608.00
TOTAL $ 9,332.00
ATTACHMENT 3
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF ARROYO GRANDE CONFIRMING THE DIAGRAM
AND ASSESSMENTS, AND DIRECTING THE LEVY OF
THE ANNUAL ASSESSMENTS RELATED TO THE
ARROYO GRANDE LANDSCAPING AND LIGHTING
ASSESSMENT DISTRICT NO. 1, WITHIN TRACT 1769,
PURSUANT TO THE LANDSCAPING AND LIGHTING ACT
OF 1972 (STREETS AND HIGHWAYS CODE SECTIONS
22500 ET. SEQ.) FOR FISCAL YEAR 2025-2026
WHEREAS, on June 9, 1992, the City Council of the City of Arroyo Grande adopted Resolution No. 2932 ordering the formation of the Arroyo Grande Landscaping and Lighting Assessment District No. 1 ("District"), within Tract 1769 under Part 2 of Division 15 of the California Streets and Highways Code 22500-22679 (Landscaping and Lighting Act of 1972), which allows local governmental agencies to form assessment districts for the purpose of financing the costs and expenses of landscaping and lighting public areas; and
WHEREAS, the City Council, at its meeting of May 27, 2025, approved Resolution No. 5364 approving the Engineer's Report and declaring its intention to levy and collect annual assessments for the District for Fiscal Year 2025-2026 and set a public hearing for June 24, 2025, for the District; and
WHEREAS, notice was duly published in a newspaper of general circulation at least 10 days prior to the date of the public hearing; and
WHEREAS, a public hearing to levy the annual assessment of the Arroyo Grande Landscaping and Lighting Assessment District No. 1 was held June 24, 2025, at the City Council Chambers, 215 E. Branch Street, Arroyo Grande, California, 93420 and the City Council took public testimony from all interested persons as to the levy of the annual assessment for the District; and
WHEREAS, pursuant to Streets and Highways Code Section 22631, the City Council is authorized to levy this assessment; and
WHEREAS, pursuant to Streets and Highways Code Section 22646, the assessments herein confirmed by the City Council shall be collected on the secured tax roll and collected at the same time and in the same manner as County taxes are collected.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Arroyo Grande, as follows:
1. The foregoing recitals are true and correct and are incorporated herein.
RESOLUTION NO.
PAGE 2
2. The City Council, having been informed with the Engineer’s Report, supporting documentation, and presentations from staff and conducted the public hearing hereby confirms the diagram and assessments for Fiscal Year 2025-2026.
3. The annual levy for the maintenance of District, located as shown in the approved Engineer's Report for the District is hereby ordered and the assessment of $3,000 to be equally distributed per assessable parcel for the Fiscal Year 2025-2026 as indicated on Exhibit "A" attached hereto and incorporated herein by this reference, is hereby confirmed.
4. Adoption of this Resolution shall constitute the levy of an assessment for Fiscal Year 2025-2026 and the City Clerk shall file the diagram and assessments with the County of San Luis Obispo Auditor.
5. Adoption of this Resolution to levy and collect annual assessments is not a project subject to the California Environmental Quality Act ("CEQA") because it has no potential to result in either a direct, or reasonably foreseeable, indirect, physical change in the environment. (State CEQA Guidelines,§§ 15060, subd. (b)(2)-(3), 15378. The actions merely constitute an administrative activity of the City. Alternatively, the adoption of resolutions to levy and collect annual assessments is exempt from CEQA on that basis that it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. (State CEQA Guidelines, § 15061, subd. (b)(3).) The levy and collection of assessment fees applies to maintenance of existing improvements and does not result in new construction or physical change in the environment.
6. This Resolution shall be effective immediately upon adoption.
On motion of Council Member , seconded by Council Member , and by the following roll call vote, to wit:
AYES:
NOES:
ABSENT:
The foregoing Resolution was passed and adopted this 24th day of June 2025.
RESOLUTION NO.
PAGE 3
CAREN RAY RUSSOM, MAYOR
ATTEST:
JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:
MATTHEW DOWNING, CITY MANAGER
APPROVED AS TO FORM:
ISAAC ROSEN, CITY ATTORNEY
RESOLUTION NO.
PAGE 4
EXHIBIT “A”
SAN LUIS OBISPO COUNTY AUDITOR-CONTROLLER
ARROYO GRANDE LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT NO. 1, WITHIN TRACT 1769
FUND NO. 1765
FOR TAX ROLL YEAR 2025-26
LOT # ASSESSOR'S PARCEL
NUMBER (APN) CHARGE
1 077253001 $ 100.00
2 077253002 $ 100.00
3 077253003 $ 100.00
4 077253004 $ 100.00
5 077253005 $ 100.00
6 077253006 $ 100.00
7 077253007 $ 100.00
8 077253008 $ 100.00
9 077253009 $ 100.00
10 077253010 $ 100.00
11 077253011 $ 100.00
12 077253012 $ 100.00
13 077253013 $ 100.00
14 077253014 $ 100.00
15 077253015 $ 100.00
16 077253016 $ 100.00
17 077253017 $ 100.00
18 077253018 $ 100.00
19 077253019 $ 100.00
20 077253020 $ 100.00
21 077253021 $ 100.00
22 077253022 $ 100.00
23 077253023 $ 100.00
24 077253024 $ 100.00
25 077253025 $ 100.00
26 077253026 $ 100.00
27 077253027 $ 100.00
28 077253028 $ 100.00
29 077253029 $ 100.00
30 077253030 $ 100.00
TOTAL: $ 3,000.00