Agenda packet, regular meeting — Buena Park City Council, August 13, 2024 (part 2 of 3)

Draft date
EXHIBIT B – LETTER OF CERTIFICATE OF CITY ___________ STATEMENT

OF SELF INSURANCE

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Address:1750 East 4th Street
City, Zip: Santa Ana, CA 92705
April 16, 2024

Attn: Sarah Rodriguez
City ______________
Department of Finance

RE: Statement of Self Insurance for ____________ Related to ______________ Maintenance Agreement with State of California Department of Transportation (“STATE”) for the ________________ along Highway __________at ____________________

Dear __________

The purpose of this letter is to certify that the CITY is self-insured and self -funded covering third -party claims arising out of its general operations (for example, commercial general liability and automobile liability insurance). Further the CITY is self -insured covering workers’ compensation claims and has received the consent of the State Department of Industrial Relations to do so.

Each fiscal year, as a part of its budgetary process, the CITY appropriates funds specifically to satisfy valid third -party claims and workers’ compensation claims, which may be brought against the CITY.

The CITY certifies its self-insured, general liability coverage for bodily injury liability and property damage liability, meets the required coverage amounts in section

6.1 (INSURANCE) of the Maintenance Agreement, specifically general liability insurance, coverage of bodily injury liability and property damage liability in an amount of $1 million per occurrence and $2 million in aggregate and $5 million in excess. The CITY further represents that regarding any claims made in connection with the Maintenance Agreement by the STATE, the STATE will be first -in-line regarding the reserved, self-insured amounts.

If you need any additional information regarding this letter, please direct those inquires through my office.

Sincerely,

FINANCE MANAGER

RESOLUTION NO. 14754

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

BUENA PARK, CALIFORNIA DESIGNATING BEACH

BOULEVARD FROM ROSECRANS AVENUE TO

ORANGETHORPE AVENUE AS KOREATOWN
WHEREAS, Buena Park is home to one the largest growing and thriving Korean - American communities living in Orange County; and
WHEREAS, the population of persons of Korean ancestry in Buena Park increased by 57 percent from 2000 to 2010, according to the United States Census Bureau; and WHEREAS, as of 2023, Korean Americans account for approximately 45 percent of the Asian and Pacific Islander population in the City; and
WHEREAS, there are nearly 11,000 people of Korean descent living in Buena Park, constituting approximately 13 percent of the City's population; and
WHEREAS, over the past 20 or so years, the area on Beach Boulevard from Stage Road to Rosecrans Avenue, in particular, has become a hotspot for Korean culture and influence. In recent years, this area has expanded further south down Beach Boulevard with The Source development at the corner of Beach Boulevard and Orangethorpe Avenue; and WHEREAS, the Korean American Chamber of Commerce cites Buena Park as hosting the largest population of Korean - American owned businesses in Orange County with many of these residing in the northern portion of the City; and
WHEREAS, several publications, including the Los Angeles Times have unofficially touted Buena Park as "Orange County's Koreatown" and remarked on the City's high concentration of Korean - owned businesses, including restaurants, grocery stores, retail, karaoke, and other sectors; and
WHEREAS, the City of Buena Park, California
Avenue extending north to Rosecrans
embedded in the fabric of the City.
designates the neighborhood from Orangethorpe
Avenue to honor the rich Korean culture that is
WHEREAS, the designation of " Koreatown" on Beach Boulevard from Rosecrans Avenue to Orangethorpe Avenue will improve the City of Buena Park's ability to protect, promote, and showcase the cultural resources of its Korean - American community and preserve the City' s rich multi - cultural landscape.

NOW, THEREFORE, The City Council of the City of Buena Park hereby determines, finds, and designates Beach Boulevard from Rosecans Avenue to Orangethorpe Avenue as " Koreatown" in the City of Buena Park.

RESOLUTION NO. 14754

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PASSED AND ADOPTED this 10th day of October 2023 by the following called vote:

AYES: COUNCILMEMBERS: Ahn, Traut, Castai) eda, Sonne, Brown NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
ABSTAIN: COUNCILMEMBERS: None
Mayor
ATTEST:''
City Clerk s '- j.

Nk
I, Adria M. Jimenez, MMC, City Clerk of the City of Buena Park, California, hereby certify that the foregoing resolution was duly and regularly passed and adopted at a regular meeting of the City Council of the City of Buena Park, held this 10th day of October 2023.

Y
City Cler
City of Buena Park
City Council Regular Meeting Agenda Report

COOPERATIVE AGREEMENT WITH THE CITY OF CYPRESS FOR THE VALLEY VIEW STREET REHABILITATION PROJECT (ARTERIAL STREET REHABILITATION, PROJECT 377)
Meeting
Tuesday, August 13, 2024, 5:00 PM
Agenda Group
CONSENT CALENDAR Item: 4D
Presented By
Deepthi Arabolu, P.E., Assistant City Engineer
Prepared By
Mina Mikhael, Director of Public Works/City Engineer
Approved By
Aaron France, City Manager

RECOMMENDED ACTION
1) Approve a cooperative agreement with the City of Cypress for the Valley View Street Rehabilitation Project (Arterial Street Rehabilitation, Project 377); 2) Authorize the City Manager and City Attorney to make any necessary, non-monetary changes to the agreement; and 3) Authorize the City Manager and City Clerk to execute the agreement.

PREVIOUS CITY COUNCIL ACTION
None.

DISCUSSION
Valley View Street between Cerritos Avenue and Ball Road is classiﬁed as a major arterial highway as per the Orange County Master Plan of Arterial Highways (MPAH). Within this segment, Valley View Street runs through both the City of Cypress and the City of Buena Park. Speciﬁcally, only the northbound lane adjacent to the curb and gutter (#3 lane) is within the City of Buena Park, while the remainder of the roadway is within the City of Cypress.

The City of Cypress contacted the Buena Park Public Works Department to notify the City about their Capital Improvement Project (CIP), speciﬁcally the Arterial Street Rehabilitation, Project 377. The project includes the rehabilitation of Valley View Street between Katella Avenue and Ball Road. Since the majority of the roadway belongs to the City of Cypress, the have proposed a cooperative agreement with City to rehabilitate the roadway, including the small portion within Buena Park. This project aims at extending the street's service life. The City of Cypress will serve as the lead agency in coordination, design, construction, and administration of this project.

Buena Park will only be responsible for reimbursing the City of Cypress for its proportionate share of the construction cost.

Staff recommends entering into this cooperative agreement with the City of Cypress to leverage a cost-effective and eﬃcient method for removing and replacing the damaged and outdated asphalt pavement.

The City of Cypress will award the construction contract on August 26, 2024. Construction is expected to begin in late September 2024 and will take approximately 40 working days to complete.

The Agreement was reviewed by the City Attorney.

BUDGET IMPACT
The City’s proportionate share is estimated to be $200,000 and will be funded from the Roadway Maintenance and Rehabilitation Account (RMRA) Fund (Account No. 24-9806-590192).

Attachments
BP-agreement-Cypress-ValleyView cooperative 2024_rev1.pdf

AN AGREEMENT BETWEEN THE CITY OF CYPRESS AND CITY OF BUENA PARK

FOR THE ARTERIAL STREET IMPROVEMENTS OF VALLEY VIEW STREET This Agreement (“AGREEMENT”) made and entered into this ________________ day of _____________________________________________ , 202__, by and between the City of CYPRESS, a municipal corporation, hereinafter referred to as “CYPRESS” and City of BUENA PARK, a municipal corporation, hereinafter referred to as “BUENA PARK”.

W I T N E S S E T H:

WHEREAS, Valley View Street from Ball Road to Cerri tos Avenue (“Valley View Street”) is located partially in CYPRESS and partially in BUENA PARK; and WHEREAS, CYPRESS has proposed the Asphalt Overlay i mprovement entitled Arterial Street Rehabilitation, Project 377, to Valley View Street, which includes, but is not limited to, mobilization, surveying, traffic control, 2-inch grind and overlay, manhole adjustments, traffic loop reinstallation, replacement of traffic striping, ma rkers, and curb paint, and other incidental items of work (“IMPROVEMENT”); and
WHEREAS, the IMPROVEMENT will extend the service life of Valley View Street and be of benefit to CYPRESS and BUENA PARK; and
WHEREAS, it is in the public interest that the cons truction of the IMPROVEMENT be accomplished by CYPRESS and BUENA PARK under a collective participation agreement; and WHEREAS, the purpose of this AGREEMENT is to provid e for the allocation of responsibilities for the construction of the IMPROVEMENT described above.

NOW, THEREFORE, in consideration of the premises and agreements herein contained, CYPRESS and BUENA PARK do hereby agree as follows:

I. CYPRESS agrees:

A. To prepare or cause to be prepared, all environm ental documents required for the IMPROVEMENT in compliance with the California Envir onmental Quality Act; plans and specifications for the construction of the IMPROVEMENT; to solicit bids and award a contract as a public works project to the lowest responsible bidder; to administer the contract to complete the IMPROVEMENT , including requiring payment of prevailing wages, all in compliance with State and local law; and to pay such contractor pursuant to the construction contract.

B. To require any and all contractors performing wo rk necessary to complete the IMPROVEMENT (“Work”) to indemnify, defend and hold BUENA PARK, its elected officials, officers, agents, and employees free and harmless with respect to any and all claims and liabilities, including stop noti ces, arising out of performance of the Work.

C. To require any and all contractors performing wo rk necessary to complete the Work to obtain and maintain commercial general and autom obile liability and workers compensation insurance acceptable to BUENA PARK and providing protection to CYPRESS, and to BUENA PARK, its elected officials, officers, agents, and employees as additional insureds.

D. To invoice BUENA PARK for BUENA PARK’s share of the construction costs incurred by CYPRESS for the IMPROVEMENT as described herein.

E. To obtain consent from BUENA PARK’s City Enginee r or Public Works Director in advance of any contractor performing Work within BUENA PARK’s right of way that could reasonably create any risk to public safety, restrict BUENA PARK’s ability to provide necessary maintenance, or compromise normal drainage or infrastructure operation, with respect to Cerritos Avenue.

II. BUENA PARK agrees:

A. To designate and does hereby so designate CYPRESS as the lead agency for the purpose of accomplishing the construction of the IMPROVEMENT as provided in Section I.

B. To pay CYPRESS its share of the actual construc tion costs for the work within the boundaries of BUENA PARK based upon unit prices bid and quantities actually used within BUENA PARK. The approximate area of IMP ROVEMENT within the boundaries of BUENA PARK is 46,500 square feet and the assumed density of the asphalt rubber hot mix (ARHM) is 145 lbs. per cubic feet. The estimated construction cost of the BUENA PARK portion is $155,000. BUENA PARK shall pay CYPRESS an amount equal to 100% of the cost of the BUENA PARK portion upon acceptance of the work by BUENA PARK.

III. IT IS MUTUALLY AGREED:

A. During construction CYPRESS shall furnish a resi dent engineer to perform the usual functions of a resident engineer on a public works project. BUENA PARK, as secondary agent, may, but is not obligated to, furn ish its own respective resident engineer. Said resident engineers shall cooperate and consult with each other, but directives of CYPRESS’s resident engineer shall be final.

B. CYPRESS and BUENA PARK shall cooperate to the fu llest extent possible in seeing the IMPROVEMENT to completion.

C. CYPRESS shall provide an itemized invoice for se rvices satisfactorily completed, reflecting all of the costs. Payment of the BUENA PARK portion of the costs shall be due within sixty (60) days of the date of receipt of the invoice, or BUENA PARK’s acceptance of the Work, whichever is later. If payment in full is not received within the foregoing period, interest shall accrue at 10% per annum until paid.

D. Party Representative: The persons responsible fo r administration of this AGREEMENT on behalf of each respective party and to whom notices permitted or required to be provided pursuant to this Agreeme nt, are as follows:

BUENA PARK: Mina Mikhael, Director of Public Works/City Engineer

CYPRESS: Nick Mangkalakiri, City Engineer
E. This AGREEMENT shall be effective upon mutual ex ecution. The term of this AGREEMENT shall continue until the Work is finally accepted by both parties and the time within which any stop notice may be filed has expired, unless sooner terminated by either party hereto by serving on the other party a thirty (30) day written notice of such termination. In the event o f termination without cause by BUENA PARK, BUENA PARK shall reimburse CYPRESS for all out of pocket expenses incurred by CYPRESS on behalf of BUENA PAR K up to the date of termination, but not to exceed BUENA PARK’s portion set forth in Section II.B, above. In the event of termination without cause by CYPRESS prior to completion of the Work, BUENA PARK shall have no further obligation to CYPRESS.

F. Neither CYPRESS nor any elected official, office r or employee thereof shall be responsible for any damage or liability incurred by reason of anything done or omitted to be done by BUENA PARK under or in connection with the Work or any work, authority or jurisdiction delegated to BUENA PARK under this AGREEMENT.

Pursuant to Government Code Section 895.4, BUENA PARK shall fully indemnify, defend, and hold CYPRESS harmless from any liabilit y imposed for injury as defined in Section 810.8 occurring by reason of any thing done or omitted to be done by BUENA PARK under or in connection with any work, authority or jurisdiction delegated to under this AGREEMENT.

Neither BUENA PARK nor any officer or employee the reof shall be responsible for any damage or liability incurred by reason of anything done or omitted to be done by CYPRESS under or in connection with the Work or any work, authority or jurisdiction delegated to CYPRESS under this AGREEM ENT. Pursuant to Government Code Section 895.4, CYPRESS shall fully indemnify, defend, and hold BUENA PARK harmless from any liability imposed for injury as defined in Section 810.8 occurring by reason of anything done or omitted to be done by CYPRESS under or in connection with any work, authority or jurisdiction delegated to CYPRESS under this AGREEMENT.

G. This AGREEMENT represents the entire understandi ng of the parties hereto as to those matters contained herein, and no prior oral or written understanding shall be of any force or effect with regard to those matters covered by this AGREEMENT.

This AGREEMENT may not be modified, altered or amen ded except in writing signed by both of the parties hereto.

[SIGNATURE PAGE FOLLOWS]

IN WITNESS WHEREOF, the parties hereto have execute d this AGREEMENT by and through their authorized officers on the date set forth below.

CITY OF CYPRESS CITY OF BUENA PARK
A Municipal Corporation A Municipal Corporation

By: _______________________________
Mayor

ATTEST:

__________________________________
City Clerk
By: _______________________________
Mayor

ATTEST:

__________________________________
City Clerk

APPROVED AS TO FORM AND CONTENT:

CITY OF CYPRESS CITY OF BUENA PARK

_______________________________ __________________ _____________ Douglas A. Dancs, P.E. Mina Mikhael, P.E.

Director of Public Works Director of Public Work s/City Engineer City of CYPRESS City of BUENA PARK

________________________________ _________________ _______________ Fred Galante,
City Attorney Christopher G. Cardinale, City Attorney City of CYPRESS City of BUENA PARK

City of Buena Park
City Council Regular Meeting Agenda Report

AGREEMENT FOR PROGRESSIVE DESIGN-BUILD SERVICES WITH NORESCO, LLC FOR AN INVESTMENT GRADE

AUDIT FOR THE CITY OF BUENA PARK'S FACILITIES AND INFRASTRUCTURE Meeting
Tuesday, August 13, 2024, 5:00 PM
Agenda Group
CONSENT CALENDAR Item: 4E
Presented By
Mina Mikhael, P.E., Director of Public Works/City Engineer Prepared By
Mina Mikhael, Director of Public Works/City Engineer
Approved By
Aaron France, City Manager

RECOMMENDED ACTION
1) Approve an agreement for progressive design-build services with NORESCO, LLC, in connection with an Energy Conservation and Performance Project at designated City facilities; 2) Authorize the City Manager and City Attorney to make any necessary, non-monetary changes to the agreement; 3) Authorize the City Manager and City Clerk to execute the agreement; and, 4) Authorize the City Manager and Public Works Director to administer the agreement.

PREVIOUS CITY COUNCIL ACTION
The City Council has been evaluating the prospects of energy-related conservation projects and improvements to City facilities for the last several years. These types of projects are authorized by Government Code Section 4217, and are commonly utilized by public agencies to minimize their carbon footprint while simultaneously reducing energy costs through sustainable designs and improvements.

On March 8, 2022, the City Council received a study session presentation about an investment grade audit (“IGA”) of City facilities with the goal of identifying potential energy eﬃciency projects that would generate both environmental beneﬁts and long-term cost-savings to the City. The City Council expressed interest in the concept and directed staff to move forward with a solicitation of qualiﬁed companies.

In January 2023, the City issued a formal Request for Qualiﬁcations (RFQ) for qualiﬁed energy service companies (“ESCOs”) to perform an IGA and subsequently implement an energy infrastructure modernization project at City facilities. In the fall of 2023, this initial RFP process was interrupted by changes to California law that impacted the project-delivery process that was contemplated by the RFP.

As a result, on February 13, 2024, the City Council directed staff to prepare and re-issue a Request for Proposals seeking qualiﬁed ECSOs to study and design energy conservation measures and improvements at various City facilities. The RFQ was issued under authority of Senate Bill 706 (effective January 1, 2024) and allows cities to contract for both the design and construction of a project costing through a single contractor, so long as speciﬁed conditions are met.

The City received a responsive proposal from NORESCO on March 28, 2024, and staff reviewed the proposal and conducted an interview to further discuss NORESCO's qualiﬁcations and approach to the project. These results were presented to the City Council during study session on May 14, 2024, at which time the City Council directed staff to negotiate an agreement with NORESCO and return for consideration of award at a future meeting.

DISCUSSION
As referenced above, the City’s solicitation of qualiﬁed ESCOs was completed under authority of Senate Bill 706 (Public Contracts Code 22185 et seq.), which allows public agencies to contract for the design and construction of a project costing more than $5 million through a single contract. This procurement and delivery model is a multi- step process that can be summarized in four steps:

1. The City issues a Request for Qualiﬁcations that identiﬁes: (a) the size, type, design character, and expected cost range of the project (this component was not included in the City’s original RFP); (b) the methodology that will be used to evaluate qualiﬁcations; (c) the procedure that will be used for selecting the contractor; and (d) factors that will be considered in evaluating proposal.

2. Contractors responding to the RFQ must demonstrate their design / construction expertise; provide detailed information about company owners, past projects completed, licenses and registrations, ﬁnancial capacity, safety record, and insurance compliance; and contractors must be willing to comply with the City’s Community Workforce Agreement.

3. The City may then enter into a contract with the selected contractor to begin design and pre-construction activities suﬃcient to establish a guaranteed maximum price for the project. In developing the GMAX project price, the contractor must utilize those subcontractors listed in their original proposal; or otherwise must bid out work not self-performed.

4. If the City and selected contractor reach an agreement on the GMAX price, the City may in its sole discretion amend the contract to allow the contractor to perform the work. If the City and contractor cannot reach an agreement on the cost to complete the work, or if the City otherwise elects not to award the remaining work to the contractor, the City may formally solicit proposals from other design build entities and award the contract on a “best value basis.”
The RFQ issued by the City was “Step 1” of this process, and with this item the City Council is considering whether to proceed with Steps 2 and 3. The City Council is not considering actual construction of a project until Step 4 at a future date (discussed more below).

NORESCO’s Qualiﬁcations (Step 2): Over the past ﬁve years, NORESCO has implemented 43 energy performance contracts for public sector clients totaling over $400 million. NORESCO holds the required licenses and the expertise in delivering ESCO projects. They have done similar projects for government agencies such as the City of Fullerton, Los Angeles County, Cal State Universities of Long Beach and Pomona, as well as multiple uniﬁed school districts. Staff and the City’s independent consultant for this project, NV5, are conﬁdent that NORESCO has the experience, capacity, and expertise needed to design and deliver a project to the City.

Summary of Proposed Agreement with NORESCO (Step 3): Staff has prepared a proposed Agreement with NORESCO for the City Council’s consideration that is consistent with the requirements of SB 706, and, if approved, would implement “Steps 2 and 3” of the four-step process outlined above.

If the City Council approves the Agreement, NORESCO would perform a multi-phase IGA that analyzes the existing conditions at City facilities and the proposed project, with the City Council having the opportunity to review, provide input, and authorize the continuation of work at the “50% IGA Phase.” Unless the City Council authorizes NORESCO to continue work at the “50% IGA Phase,” anticipated to be in November of this year, no compensation will be due and payable to NORESCO under the proposed Agreement. If the City Council authorizes NORESCO to complete the Final IGA Report, the City would be responsible for compensating NORESCO a not to exceed amount of $189,000 for its services.

The Final IGA Report will provide the City Council with a preliminary design and a ﬁrm scope of the project, as well as a guaranteed maximum price for NORESCO to complete its construction. If the City Council agrees to the project scope and price, it may amend its agreement with NORESCO to authorize it to complete design and construction of the project. In this event, the cost of the IGA Report would be paid for as a project cost. Staff will be working with NORESCO during the IGA process to negotiate and ﬁnalize the proposed terms and conditions of construction.

Also, consistent with SB 706, the City Council will retain the ability to seek alternative competitive proposals for projects that are identiﬁed in the Final IGA Report. In the event the City utilizes an alternative construction entity, the City would be obligated to compensate NORESCO in a sum not-to-exceed $450,000.

The “Proposed Project Sites,” “Project Scope,” and “Project Goals” for which NORESCO is responsible are further summarized below:

Proposed Project Sites: The following City-owned facilities will be considered in the project:

City Yard (6955 Aragon Cir, Buena Park, CA 90620);
City Hall (6650 Beach Blvd, Buena Park, CA 90622);
Police Department (6640 Beach Blvd, Buena Park, CA 90622); Community Center (6688 Beach Blvd, Buena Park, CA 90621); Ehlers Events Center (8150 Knott Ave, Buena Park, CA 90620); William Peak Park (7225 El Dorado Dr, Buena Park, CA 90620); Boisseranc Park (7520 Dale St, Buena Park, CA 90620);
Brenner Park (7401-7413 Ridgeway Dr, Buena Park, CA 90620).

Proposed Scope of Energy Conservation Measures and Improvements: The project will explore the feasibility, design and construction of the following energy conservation, energy eﬃciency, energy generation and related energy capital improvements, and water conservation measures at the above-listed facilities:

Interior and Exterior LED Lighting: Upgrade or replace LED lighting for the interior and exterior of facilities, with the exception of exterior lighting at the Ehlers Events Center (already complete).

HVAC Replacements: City Hall, Police Department, William Peak Park, Boisseranc Park, and Brenner Park.

HVAC Controls: All facilities.

EV Charging Stations: City Hall, Police Department, Community Center, Ehlers Events Center, and City Yard.

Conduits or charging stations should be planned for ﬂeet charging as well as public interface charging.

Solar PV Installation: Carport solar PV installations in speciﬁed areas of the parking lots at Ehlers Events Center, City Hall, the Community Center, and City Yard, and rooftop solar PV installations at City Hall, Police Department, and City Yard. A timely NEM 2.0 Application to Southern California Edison has been submitted previously on City’s behalf and NORESCO shall comply with all requirements necessary to maintain City’s grandfathered NEM 2.0 status. Additionally, NORESCO will explore the addition of battery energy storage systems for incorporation into existing building electrical systems and proposed PV systems.

Water Conservation Measures: Water conservation measures at the facilities and in particular William Peak Park, Boisseranc Park, and Brenner Park.

Other ECMs: NORESCO may investigate any other energy conservation measures or improvements at the Facilities believed to be cost effective and consistent with the “Project Goals” discussed below, such as mechanical pool equipment upgrades at Park facilities.

Project Goals: NORESCO will design a project achieving the following goals and objectives:

Project costs will not exceed $20,000,000 and be paid from a guaranteed reduction in utility costs, procurement of utility incentives, tax credits or incentives, and/or energy grants, with estimated savings in ongoing utility costs to include assumptions for ongoing maintenance, repairs, and replacement costs over the term of the ﬁnancing
Reduce existing energy consumption and peak energy demands at the Facilities Reduce existing maintenance and other operational costs of the Facilities Upgrade, retroﬁt, or replace obsolete and/or ineﬃcient systems existing at the Facilities Maintain a safe and consistent environment at the Facilities that offers reasonable levels of comfort to occupants
Ensure functionality and compatibility of Project features with existing equipment at Facilities Utilize technology to achieve optimum system performance and cost savings at Facilities Minimize ﬁnancial and technical risks of the Project and Facilities to the City The Agreement only contemplates the examination and study of a future energy conservation project. Future discretionary action is needed for implementation.

BUDGET IMPACT
There is no direct budget impact or cost associated with approving this Agreement at this time. Compensation will only be due and payable if the City Council approves the continuation of work at the 50% IGA Phase as described above, which will be a future discretionary action of the City Council.

Attachments
Professional Services Agreement - ESCO Design .pdf
1 CITY OF BUENA PARK

AGREEMENT FOR PROGRESSIVE DESIGN-BUILD SERIVCES
Energy Conservation and Performance Contract

This Agreement for Progressive Design -Build Services (“Agreement”) is dated as of August___, 2024 (“Effective Date”), and is between City of Buena Park, a California charter city (“CITY”), and NORESCO, LLC, a Delaware limited liability company ("NORESCO"). CITY and NORESCO are at times referred to herein jointly as “Parties” and individually as a “Party.”

1. TERM. The term of this Agreeme nt shall commence on the Effective Date and, unless terminated pursuant to Section 16.2 (Termination by CITY for Cause) or Section 16.3 (Termination for Convenience), shall remain in full force and effect until the first of the following to occur: (a) if, after the City Council accepts the Final IGA Report, the Parties amend this Agreement with NORESCO to contract for NORESCO to perform the remaining design, preconstruction, and construction activities (hereinafter the “Construction Wor k”) sufficient to complete and close out an energy conservation and performance improvement project that is described in the Final IGA Report (a “Project”), then the term of th is Agreement shall expire on the date the Project is accepted as complete by CITY; or alternatively, (b) this Agreement shall expire on the date that is 12 months after the date on which CITY accepts the Final IGA Report as complete if the Parties have not amended this Agreement to authorize NORESCO to perform Construction Work for a Project before that date (with such amendment hereinafter referred to as a “Construction Contract”).

2. SERVICES. Subject to the terms and conditions in this Agreement, NORESCO shall provide to CITY those assessment, design, and preconstruction services that are specifically described in Exhibit “A” (the “Scope of Services” or simply the “Services”) in furtherance of CITY exploring the viability of implementation of certain energy and water conservation, energy efficiency, energy generation and related energy capital improvements at specified CITY owned facilities. CITY may request changes to the Services and in such cases the changes and any resulting increase or decrease in the Compensation to be paid NORESCO, or to the Schedule of Performance (defined below), shall be documented in a written amendment to this Agreement.

Increases or decreases in Compensation resulting from any change to the Services shall be based on the rate s specified in the Compensation Schedule set forth in Exhibit A -1 (“Compensation Schedule”), or if not specified in the Compensation Schedule at then-applicable prevailing market rate charged by NORESCO to other public agencies located in the State of California for the same service. If, following NORESCO’s completion of the Services, the Parties amend this Agreement to authorize NORESCO to perform Construction Work, then NORESCO shall perform the Construction Work as described in and pursuant to the terms and conditions of the Construction Contract agreed to by the Parties.

3. SCHEDULE OF PERFORMANCE. NORESCO shall commence providing the Services on the Effective Date and shall continue and complete performance in accordance with the benchmarks and deadlines described in the Scope of Services in Exhibit A . If a deadline is not established for a specific action or task that is needed to complete the Services, performance by NORESCO shall be completed in a timely and diligent manner reasonably acceptable to CITY.

4. COMPENSATION. As full and complete compensation for NORESCO’s provision of the Services, including any reimbursable expenses if any, CITY shall pay NORESCO an amount determined as follows (“Compensation”):

2 4.1 If CITY, at any time prior to authorizing NORESCO to proceed with the 90% IGA Phase, terminates this Agreement pursuant to Section 16.2 or Section 16.3, then no compensation, payment, reimbursement, penalty, or consideration of any kind shall be due or payable by CITY; and if NORESCO, at any time prior to CITY authorizing NORESCO to proceed with the 90% IGA Phase, terminates this Agreement pursuant to Section 16.3, then no compensation, payment, reimbursement, pe nalty, or consideration of any kind shall be due or payable by CITY.

4.2 If CITY, at any time after authorizing NORESCO to proceed with the 90% IGA Phase as described in the Scope of Services in Exhibit A , terminates this Agreement pursuant to Sections 16.2 or 16.3, then CITY shall pay NORESCO for the reasonable value of design and predevelopment Services, but not the assessment portion of the Services, rendered prior to the effective date of termination based on the hourly rates set forth in the Compensation Schedule ; provided that the total maximum Compensation paid NORESCO in this event shall NOT EXCEED the sum of $189,000.00.

4.3 If CITY, following NORESCO’s submission and CITY’s acceptance of the Final IGA Report, in is sole and absolute discretion, amends this Agreement with NORESCO to authorize it to perform Construction Work for a Project that is described in the Final IGA Report, then CITY shall pay NORESCO for the design and predevelopment portion of the Services provided in completing the Final IGA Report, but not the assessment portion of the Services, based on the hourly rates set forth in the Compensation Schedule ; provided that the total maximum Compensation paid NORESCO in this event shall NOT EXCEED the sum of $189,000.00.

4.4 If CITY, following NORESCO’s submission and CITY’s acceptance of the Final IGA Report, does not , within a reasonable period of time not to exceed 12 months, amend this Agreement to authorize NORESCO to complete Construction Work for any portion of a Project that is described in the Final IGA Report, then CITY shall pay NORESCO for the design and predevelopment portion of the Services provided in completing the Final IGA Report, but not the assessment portion of the Services, based on the hourly rates set forth in the Compensation Schedule; provided that the total maximum Compensation paid NOR ESCO in this event shall NOT EXCEED the sum of $189,000.00.

4.5 If CITY, following NORESCO’s submission and CITY’s acceptance of the Final IGA Report, formally solicits proposals from other design -build entities and affirmatively awards a Construction C ontract to a third -party contractor other than NORESCO for a Project that is described in the Final IGA Report, then CITY shall pay NORESCO for all Services provided in completing in the Final IGA Report based on the hourly rates set forth in the Compensation Schedule; provided that the total maximum Compensation paid NOR ESCO in this event shall NOT EXCEED the sum of $450,000.00.

5. INVOICES AND PAYMENT.

5.1 Tracking Invoices. Each month, NORESCO shall submit invoices to CITY for the Services performed and any authorized reimbursable expenses incurred during the immediately preceding calendar month (“Tracking Invoices”). The Tracking Invoices shall describe in detail the Services rendered during each day of the period, and shall show the days worked, personnel performing the Services, number of hours worked, the hourly r ates charged, milestone achievements, and, if applicable, reimbursable expenses incurred. NORESCO shall remit the Tracking Invoices to CITY Representative, and CITY shall review all Tracking Invoices and notify NORESCO in writing within ten (10) business days of any disputed amounts. The Parties shall 3 keep and maintain copies of the Tracking Invoices to evidence any Compensation that may become due and payable NORESCO under the terms of this Agreement.

5.2 Final Invoices. Within 30 days of Compensation becoming due and payable by CITY to NORESCO under the provisions of Section 4.2 through Section 4.5, inclusive, NORESCO may shall submit a final invoice to CITY Representative for the Services or reimbursable expenses for which NORESCO demands payment (“Final Invoice”). The Final Invoice shall: state whether payment is being requested under Section 4.2, 4.3, 4.4, or 4.5; state the total amount claimed by NORESCO as du e and payable; and include the relevant Tracking Invoices as attachments to support the total compensation requested.

5.3 Payment. CITY shall pay all undisputed portions of Final Invoices within thirty (30) calendar days after receipt, up to the maximum Compensation amount set forth in Section 4 of this Agreement. Notwithstanding the foregoing, if a Final Invoice seeks payment under Section

4.3, NORESCO shall advance and charge the undisputed Final Invoice to the Project, which shall be paid by CITY at the same time and from the same sources as costs for Construction Services relating to the Project . CITY shall not withhold federal or state payroll or other taxes, or make deductions, from payments made to NORESCO.

6. STANDARD OF SKILL. NORESCO shall p erform all Services in the manner and according to the standards currently observed by a competent practitioner of NORESCO’s profession in California , and shall at all times, meet or exceed any applicable professional standards of care, workmanship, or con duct. All products of whatsoever nature that NORESCO delivers to CITY pursuant to this Agreement shall be prepared in a professional manner and conform to the standards of quality normally observed by a person currently practicing in NORESCO’s profession. The acceptance of the Services by CITY shall not operate as a release of NORESCO from such standards of care, workmanship, or conduct. NORESCO warrants that any design and engineering services provided under this Agreement shall comply with good engineering practices.

7. INDEPENDENT CONTRACTOR. NORESCO is and shall at all times remain as to CITY a wholly independent contractor. Neither CITY nor any of its agents shall have control over the conduct of NORESCO or any of NORESCO's employees or agents, except as herein set forth.

NORESCO shall not at any time or in any manner represent that it or any of its agents or employees are in any manner agents or employees of CITY. NORESCO shall have no power to incur any debt, obligation, or liability on behalf of CITY or otherwise act on behalf of CITY as an agent.

7.1 NORESCO shall not have the status of an employee of CITY under this Agreement, or be entitled to participate in any insurance, medical care, vacation, sick leave or other benefits provided for CITY's officers or employees.

7.2 In the event that NORESCO, or any of its employees, agents, or subcontractors providing Services under this Agreement, claims or is determined by a court of competent jurisdiction or the California Public Employees Retirement System (“ PERS”) to be eligible for enrollment in PERS as an employee of CITY, NORESCO shall indemnify, defend, and hold CITY harmless for the payment of any employee and/or employer contributions for PERS benefits on behalf of NORESCO or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of CITY.

4 7.3 NORESCO represents that it has, or will secure at its own expense, all personnel required to perform the Services under this Agreement. All of the Services shall be performed by NORESCO or under its direct supervision, and all personnel engaged in the work shall be qualified to perform it. NORESCO reserves the right to determine the assignment of its own employees to the performance of the Services under this Agreement, but CITY reserves the right, for good cause, to require NORESCO to exclude any employee from performing Services on CITY's premises.

8. ADMINISTRATION.

8.1 CITY’s Representative. CITY Representative shall be the Director of Public Works, who has the authority to administer this Agreement and oversee NORESCO’s performance of the Services, provided that an individual’s authority to amend this Agreement shall be governed by applicable provisions of the Buena Park Municipal Code. All activities performed by NORESCO shall be coordinated through CITY Representative. CITY may change the identity of CITY Representative upon written notice to NORESCO.

8.2 NORESCO’s Representative. NORESCO’s Representative shall be designated by NORESCO in writing , who shall have the authority to administer this Agreement on behalf of NORESCO and to act, bind, and approve all matters relating to this Agreement on behalf of NORESCO. NORESCO’s Representative shall not be replaced without the advance consent of CITY, which consent shall not be unreasonably withheld.

8.3 Third Party Representative. CITY may, at its sole cost and expense, retain an independent third -party representative (“Third -Party Representative”) to provide an independent review and recommendations to CITY in connection with the Project and NORESCO’s performance of the Services. At the sole discretion of CITY, the costs incurred for the Third-Party Representative shall be included as a Project cost in the Project cash flow model and will be paid for by CITY from Project funding sources.

9. SAFETY REQUIREMENTS. All work performed under this Agreement shall be performed in such a manner as to provide safety to the public and to meet or exceed the safety standards outlined by CAL OSHA. CITY may issue restraint or cease and desist orders to NORESCO when unsafe or harmful acts are observed or reported relative to the performance of the Services.

NORESCO shall maintain the work sites free of hazards to persons and property resulting from its operations. NORESCO shall immediately report to CITY any hazardous condition noted by NORESCO.

10. INDEMNIFICATION AND HOLD HARMLESS.

10.1 Indemnification for Design Services. Consistent with California Civil Code Section 2782.8, to the extent the Services are design professional services to be performed by a design professional, as that term is defined under said Section 2782.8, NORESCO shall, to the fullest extent permitted by law, indemnify, protect, defend, and hold CITY, its officers, employees, and agents (“CITY Indemnitees”) harmless for all claims, demands, costs, or liability that arise out of, pertain, or relate to the negligence, recklessness, or willful misconduct of NORESCO, its officers, employees, or agents in said performance of the Services, excepting only liability arising from the sole negligence, active negligence, or intentional misconduct of CITY or CITY Indemnitees.

10.2 Indemnification for Other Services. Other than in the performance of design professional services by a design professional, as covered by Section 10.1 above, to the fullest extent permitted by law NORESCO shall defend, indemnify, and hold harmless CITY and CITY 5 Indemnitees from and against all claims arising out of, pertaining to, or relating to the acts or omissions, negligence, recklessness or willful misconduct of NORESCO, NORESCO’s officers, employees, consultants, or subcontractors in performing or failing to perform any work, services, or functions provided for, referred to, or in any way connected with any work, services, or functions to be performed under this Agreement. Under no circumstances shall NORESCO be liable for claims to the extent such claims are due to the sole negligence or willful misconduct of CITY or CITY Indemnitees. For purposes of this Section 10.2 only, “claims” means any and all claims, demands, actions and suits brought by a party other than CITY for any and all losses, liabilities, costs, expenses, damages and obligations, and the defense obligation shall include but not be limited to payment of CITY’s reasonable attorneys’ fees, experts’ fees, and litigation costs incurred in defense of a claim. Notwithstand ing the foregoing, to the extent required by California Civil Code section 2782, NORESCO’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 CITY or CITY Indemnitees.

10.3 Taxes, Assessments, Workers Compensation. NORESCO shall pay all required taxes on amounts paid to NORESCO under this Agreement and indemnify and hold CITY harmless from any and all taxes, assessments, penalties and interest asserted against CITY by reason of the independent contractor relationship created by this Agreement. NORESCO shall fully comply with applicable workers’ compensation laws regarding NORESCO and subcontractors shall indemnify and hold CITY harmless from any failure of NORESCO to comply with applicable workers’ compensation laws.

10.4 Obligations Not Limited by Insurance . The obligations and covenants of NORESCO in this Section 10 are independent and separate from any requirement or covenant to carry insurance. The obligations of NORESCO under this Section 10 shall not be limited by the limits of any policies of insurance by this Agreement or otherwise maintained by NORESCO, nor shall NORESCO’s obligations by limited by the provisions of any workers’ compensation act or similar act. NORESCO expressly waives any statutory immunity under such statutes or laws as to CITY or CITY Indemnitees.

10.5 Survival; Enforcement. NORESCO’s obligations and covenants under this Section shall survive the expiration or termination of this Agreement and shall continue in full force and effect for a time at least equal to the statute of limitations that is applicable to the underlying Claim, demand, cost or liability. NORESCO’s failure to promptly pay CITY any obligation for reimbursement or indemnification arising under this Section 10 shall be a material breach of NORESCO’s obligations to CITY under this Agreement.

11. INSURANCE. At all times during the term of this Agreement NORESCO shall maintain insurance coverage in the types, and amounts that are set forth in this Section 11, and upon CITY’s request NORESCO shall provide evidence of such coverage to the satisfaction of CITY’s Director of Risk Management, which may include copies of endorsements signed by an authorized representative of the underwriting company, or certificates of insurance.

11.1 Scope of Insurance. NORESCO shall maintain policies with coverage at least as broad as:

.1 Commercial General Liability insurance which shall include insurance for "bodily injury," "property damage" and "personal and advertising injury" with coverage for premises and operations, products and completed operations, and contractual liability.

6 .2 Business Automobile insurance which shall include coverage for all owned, hired, and non-owned automobiles or other licensed vehicles (Code 1-Any Auto).

.3 Workers' Compensation insurance as required by the California Labor Code and Employer's Liability Insurance.

.4 Professional Liability insurance appropriate to NORESCO’s profession. If such insurance policy is written on a claims-made form, the retroactive date must be shown and must be before the effective date of the Agreement or the commencement of Services by NORESCO.

11.2 Limits of Insurance . NORESCO shall maintain insurance coverage limits as set forth below:

.1 Commercial General Liability: $2,000,000 per occurrence for bodily injury, personal injury, and property damage. If a general aggregate limit is used, either the general aggregate limit shall apply separately to the Project or the general aggregate limit s hall be $4,000,000 and contain specific language creating a duty to defend against any suit seeking damages which arise out of, pertain to, or relate to NORESCO’s obligations under this Agreement.

.2 Automobile Liability: $1,000,000 per accident for bodily injury and property damage.

.3 Employer's Liability: $1,000,000 per accident for bodily injury or disease.

.4 Professional liability: $2,000,000 per claim, with an extended reporting period of not less than two years.

11.3 Umbrella or Excess Insurance. In the event NORESCO purchases an umbrella or excess insurance policy(ies) to meet the “Limits of Insurance," this insurance policy(ies) shall afford no less coverage than the primary insurance policy(ies) required by this Section 11.

11.4 Deductibles and Self -insured Retentions . NORESCO shall be responsible for payment of any deductibles contained in any insurance policy(ies) required hereunder and NORESCO shall also be responsible for payment of any self-insured retentions.

11.5 Required Endorsements. Each insurance policy shall be endorsed as follows:

.1 Except with respect to Workers Compensation or Professional Liability/E&O policies required by this Section 11, CITY and CITY Indemnitees shall be named as additional insureds (collectively “Additional Insureds”). Additional Insured endorsements shall not:
(a) be limited to “Ongoing Operations””; (b) exclude “Contractual Operations” (c) restrict coverage to the “Sole” liability of NORESCO; or (d) contain any other exclusion contrary to this Agreement.

.2 For any claims related to NORESCO’s obligations under this Agreement, NORESCO's insurance coverage shall be primary to any other similar insurance carried by Additional Insureds. Any insurance or self-insurance maintained by Additional Insureds shall be in excess of NORESCO's insurance and shall not be called upon to contribute with it.

.3 All insurance coverage shall contain a provision that provides thirty (30) calendar days' prior written notice from insurer to CITY for cancellation, modification, or lapse . 7 The notice shall be provided via certified mail, return receipt requested. NORESCO shall require its insurer to modify the applicable policy and all certificates of insurance to delete the word "endeavor" with regard to any notice provisions.

.4 Each policy shall be endorsed to state that the insurer waives the right of subrogation against CITY and CITY Additional Insureds.

11.6 Duration of Insurance. The requirements of this Section 11 shall survive expiration or termination of the Agreement. Insurance must be maintained, and evidence of insurance must be provided for at least 2 years after any expiration or termination of the Agreement or, in the alternative, the policy shall be endorsed to provide not less than a 2-year discovery period.

11.7 Acceptability of Insurers. All insurance coverage required by this Agreement shall be written by insurers authorized to conduct business in the State of California by the Department of Insurance and rated “A:VIII” or above in the most recent A.M. Best's Insurance Rating Guide.

11.8 Verification of Coverage . NORESCO shall furnish CITY with evidence of the insurance required by this Agreement to the satisfactory to CITY. Such evidence shall consist of original certificates of insurance and amendatory endorsements, including an additional insured endorsement. The endorsements shall conform to CITY's requirements. NORESCO shall file all certificates of insurance and fully executed endorsements with CITY before commencing performance of the Services. Where and at the times applicable, NORESCO shall also provide proof that the policies of insurance required under this Agreement and expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. NORESCO shall furnish such proof to CITY prior to the expiration of the origina l policies. CITY may require blanket policy endorsements affecting the coverage required by these specifications in the event of a Claim.

11.9 Other Insurance Provisions.

.1 All insurance coverage and limits required in this Agreement shall apply to the full extent of the policies involved, available or applicable. Nothing contained in this Agreement or any other agreement relating to CITY or its operations limits the application of the insurance coverage.

.2 All insurance coverage shall cover NORESCO’s operations pursuant to the terms of this Agreement.

.3 Any actual or alleged failure on the part of CITY or CITY’s Additional Insureds under these requirements to obtain proof of insurance required under this Agreement in no way waives any right or remedy of CITY or any additional insured, in this or any other regard.

.4 NORESCO shall provide immediate notice to CITY of any claim or loss against NORESCO that includes CITY or any of the CITY’s Additional Insureds as a defendant.

CITY assumes no obligation or liability from the notice. CITY shall have the right, but not the duty, to monitor the handling of the claim or claims if they are likely to involve CITY.

11.10 Subcontractors. NORESCO shall require subcontractors or any other party involved in the Services by NORESCO to carry the same insurance as required in this Section

11. NORESCO shall obtain certificates evidencing the coverage and make reasonable efforts to ensure that the coverage is provided as required in this Section. NORESCO shall require that no 8 contract used by any subcontractor, or contract NORESCO enters into on behalf of CITY, shall reserve the right to charge back to CITY the cost of insurance required by this Agreement .

NORESCO shall, upon request, submit to CITY for review, all certificates of insurance obtained in compliance with Section 11.8. CITY’s failure to request copies of the documents shall not impose any liability on CITY, or its employees, or be deemed a waiver of any of CITY’s rights.

12. WORK PRODUCT.

12.1 Limits on Applicability. This Section 12 shall be applicable to the Parties unless CITY terminates this Agreement under the circumstances described in Section 4.1 in which case NORESCO shall keep and maintain ownership of all Work Product.

12.2 Deliverables. NORESCO shall, in such time and in such form as CITY may require, furnish reports concerning the status of Services required under this Agreement.

NORESCO shall, upon request by CITY and upon completion or termination of this Agreement, deliver or return to CITY all material furnished to NORESCO by CITY.

12.3 Ownership.

.1 All draft and final reports, documents and other written material, and any and all images, ideas, concepts, designs including website designs, source code, object code, electronic data and files or other media whatsoever, created or developed by NORESCO in the performance of this Agreement (collectively, “ Work Product”) shall be considered to be “works made for hire” for the benefit of CITY. All Work Product and any and all intellectual property rights arising from their creation, including all copyrights and other proprietary rights, shall be and remain the property of CITY without restriction or limitation upon their use, duplication or dissemination by CITY upon final payment being made. NORESCO shall not obtain or attempt to obtain copyright protection as to any of the Work Product.

.2 NORESCO hereby assigns to CITY all rights of ownership to the Work Product, including any and all related intellectual property and proprietary rights that ar e not otherwise vested in CITY pursuant to subsection .1 above.

.3 NORESCO warrants and represents that it has secured all necessary licenses, consents or approvals necessary to the production of the Work Product, and that upon final payment, CITY shall have full legal title to the Work Product, and full legal authority and the right to use and reproduce the Work Product for any purpose. NORESCO shall defend, indemnify and hold CITY and CITY Indemnitees harmless from any loss, claim or liability in any way related to a claim that CITY’s use of any of the Work Product is violating federal, state or local laws, or any contractual provisions, or any rights or laws relating to trade names, licenses, franchises, copyrights, patents or other means of protecting i ntellectual property rights or interests in products, ideas or inventions. NORESCO shall bear all costs arising from the use of patented, copyrighted, trade secret or trademarked documents, materials, equipment, devices or processes in connection with its provision of the Work Product produced under this Agreement. In the event any the use of any of the Work Product or other deliverables hereunder by CITY is held to constitute an infringement and the use of any of the same is enjoined, NORESCO, at its expense, shall: (a) secure for CITY the right to continue using the Work Product and other deliverables by suspension of any injunction, or by procuring a license or licenses for CITY; or (b) modify the Work Product and other deliverables so that they become n on-infringing while remaining in compliance with the requirements of this Agreement. NORESCO’s covenants under this Section

12.3 shall survive the expiration or termination of this Agreement. 9 13. CONFIDENTIALITY. During performance of this Agreement, NORESCO may gain access to and use CITY information regarding inventions, machinery, products, prices, apparatus, costs, discounts, future plans, business affairs, governmental affairs, processes, trade secrets, technical matters, systems, facilities, CITY lists, product design, copyright, data, and other vital information (hereafter collectively referred to as “CITY Information”) that are valuable, special and unique assets of CITY. NORESCO agrees to protect all CITY Information and treat it as strictly confidential, and further agrees that NORESCO shall not at any time, either directly or indirectly, divulge, disclose or communicate in any manner any CITY Information to any third party without the prior written consent of CITY. In addition, NORESCO shall c omply with all CITY policies governing the use of CITY network and technology systems. A violation by NORESCO of this Section shall be a material violation of this Agreement and shall justify legal and/or equitable relief.

14. RECORDS. NORESCO shall main tain complete and accurate records with respect to sales, costs, expenses, receipts and other such information relating to the Work, as required by CITY. NORESCO shall maintain adequate records on services provided in sufficient detail to permit an evalua tion of the Work. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. At all times during regular business hours, NORESCO shall provide access to such bo oks and records to CITY, and shall give CITY the right to examine and audit such books and records and to make transcripts as necessary, and shall allow inspection of all work, data, documents, proceedings and activities related to this Agreement.

15. ASSIGNMENT AND SUBCONTRACTING. This Agreement is personal to NORESCO and CITY has entered this Agreement in reliance on NORESCO’s skill, competence and experience. NORESCO shall not assign any of its rights or delegate any of its duties under this Agreement, either in whole or in part, without CITY’s prior written consent, by and through CITY Representative. CITY’s consent to an assignment of rights under this Agreement shall not release NORESCO from any of its obligations or alter any of its obligations t o be performed under this Agreement. Any attempt at assignment or delegation by NORESCO in violation of this Section shall be void and of no effect and shall entitle CITY to immediately terminate this Agreement for cause. As used in this Section, “assignme nt” and “delegation” means any sale, gift, pledge, hypothecation, encumbrance or other transfer of all or any portion of the rights, obligations, or liabilities in or arising from this Agreement to any person or entity, whether by operation of law or otherwise, and regardless of the legal form of the transaction in which the attempted transfer occurs. NORESCO may use subcontractors to carry out portions of the Services, but only to the extent disclosed by NORESCO and approved by CITY, and provided that all subcontractors shall be bound by all applicable requirements of this Agreement.

16. SUSPENSION AND TERMINATION.

16.1 Right to Suspend. CITY shall have the right at any time to temporarily suspend NORESCO’s performance hereunder, in whole or in part, by giving a written notice of suspension to NORESCO. If CITY gives such notice of suspension, NORESCO shall immediately suspend its activities under this Agreement as specified in such notice.

16.2 Termination for Cause by CITY. CITY may terminate this Agreement for cause if NORESCO refuses or fails to timely perform any of the provisions of this Agreement with such diligence as will ensure its completion within the time specified herein. CITY shall notify NORESCO in writing of the non -performance, and if not promptly corrected within fifteen (15) days (or commenced with correction and diligently continued with the work if the correction cannot 10 be completed within fifteen (15) days), CITY may terminate NORESCO's right to proceed with this Agreement or such part of the Agreement as to which there has been delay or a failure to properly perform. If CITY terminates this Agreement under this Section 16.2:

.1 NORESCO shall, not later than five days after such notice of termination, deliver to CITY copies of all Work Product or other information prepared pursuant to this Agreement.

.2 CITY shall pay NORESCO the reasonable value of Services rendered by NORESCO prior to termination; provided, however, CITY shall not in any manner be liable for lost profits that might have been made by NORESCO had the Agreement not been terminated or had NORESCO completed the Services required by this Agreement. In this regard, NORESCO shall furnish to CITY such information as in the judgment of CITY is necessary for CITY to determine the reasonable value of the Services render by NORESCO. The foregoing is cumulative and does not affect any right or remedy that CITY may have in law or equity.

16.3 Termination for Convenience . Either Party may terminate this Agreement for convenience prior to CITY issuing NORESCO a notice to proceed for the 90% IGA Phase, as described in Section 4.1, upon fifteen (15) days written notice. Following the issuance of a notice to proceed to NORESCO for the 90% IGA Phase, if CITY terminates this Agreement under this Section 16.3, then CITY shall pay to NORESCO the amounts set forth in Sections 4.1, 4.2, or 4.4, as applicable.

17. Conflicts of Interest. NORESCO shall comply with all applicable federal, state and local conflict of Interest laws, including the Political Reform Act (Cal. Gov. Code § 81000 et seq.), the Levine Act (Cal. Gov. Code § 84308), and California Government Code Section 1090.

NORESCO covenants that neither it, nor any officer or principal of its firm, has or shall acquire any interest, directly or indirectly, that would conflict in any manner with the interests of CITY or that would in any way hinder NORESCO’s performance of Services under t his Agreement.

NORESCO further covenants that in the performance of this Agreement, no person having any such interest shall be employed by it as an officer, employee, agent or subcontractor, without the written consent of CITY. NORESCO agrees to avoid conflicts of interest or the appearance of any conflicts of interest with the interests of CITY at all times during the performance of this Agreement.

18. NOTICES. All notices and other communication under this Agreement (other than regularly scheduled payments) shall be deemed properly given upon receipt if delivered in person or sent by electronic facsimile with regular mail follow-up or sent by overnight delivery service or sent by registered mail, return receipt requested and postage prepaid, addressed as follows:

To: CITY of Buena Park, CA
CITY of Buena Park
6650 Beach Boulevard,
Buena Park, California 90620
Attention: Aaron France, CITY Manager

To NORESCO:

One Research Drive
Suite 400C
Westborough, MA 01581
Attention: Pablo Hernandez, CFO
11 The individuals referenced above shall be the designated points of contact and representatives of each Party for purposes of this Agreement, and either Party may change the identify of such representative or such address for notices from time to time by written notice to the other Party.

19. REPRESENTATIONS AND WARRANTIES.

19.1 Mutual Representations. Each Party warrants and represents to the other that:

.1 It has all requisite power, authority, licenses, permits, and franchises, corporate or otherwise, or the ability to enter into contracts with appropriately licensed parties, to execute and deliver this Agreement and perform its obligations hereunder;

.2 Its execution, delivery, and performance of this Agreement have been duly authorized by, or are in accordance with, as to NORESCO, its organic instruments and, as to CITY, by all requisite municipal, board, or other action and are not in breach of any appli cable law, code or regulation; this Agreement has been duly executed and delivered by the signatories so authorized, and constitutes each Party's legal, valid and binding obligation;

.3 Its execution, delivery, and performance of this Agreement shall not result in a breach or violation of, or constitute a default under, any agreement, lease or instrument to which it is a party or by which it or its properties may be bound or affected;

.4 It has not received any notice, nor to the best of its knowledge is there pending or threatened any notice of any violation of any applicable laws, ordinances, regulations, rules, decrees, awards, permits or orders which would materially adversely affect its ability to perform hereunder; and

.5 The persons executing this Agreement are fully authorized by law to do so.

19.2 City Representations. In addition to the representations in Section 19.1, CITY warrants and represents to NORESCO that:

.1 CITY has obtained or shall obtain all necessary governmental, legal, administrative and any other approval necessary for it to enter into this Agreement;

.2 CITY will provide NORESCO with all records in its possession and requested by NORESCO and all information provided shall be, true and accurate in all material respects except as may be disclosed by CITY in writing; and

.3 CITY has not entered into any contracts or agreements for the Facilities with persons or entities other than NORESCO regarding the provision of the Services referenced herein.

19.3. Acknowledgement of Limited Scope . CITY acknowledges and agrees that NORESCO has not acted as a municipal financial advisor to CITY and that CITY has not relied on NORESCO for any matters rel ating to the financing of the Construction Work, including issuance of any bonds or financing instruments that may be entered into by CITY to pay for the Construction Work.

12 19.4. NORESCO Representations. In addition to the representations in Section 19.1, NORESCO, warrants and represents to CITY that it possesses the skill, experience, qualifications, capacity (financial or otherwise), and/or professional expertise necessary to perform the Work. NORESCO acknowledges that CITY relies upon the skill of NORES CO, and that of NORESCO’s staff, personnel, contractors or subcontractors, if any, to do and perform the Services in a skillful, competent, and professional manner, and NORESCO and NORESCO’s staff, personnel, contractors or subcontractors (if applicable) s hall perform the Services in such manner. NORESCO shall, at all times, meet or exceed any and all applicable professional standards of care or workmanship in performing the Work.

20. MISCELLANEOUS TERMS.

20.1 Publicity. CITY hereby grants to NORESCO and its directors, officers, employees, and affiliates (its “Authorized Representatives”) authorization to include CITY’s name in NORESCO’s client list.

20.2 Protecting Personal Data. NORESCO processes personal data as described in our privacy notices at noresco.com. The Parties will comply with applicable data privacy laws governing personal data processed in connection with this Agreement, including the California Consumer Privacy Act (CCPA), and take all reasonable commercial and legal steps to protect personal data. If CITY provides NORESCO with personal data, CITY will ensure that it has the legal right to do so, including notifying the individuals whose personal data is shared. If a party collects or processes personal data from California residents under this Agreement, such party is a “Service Provider” under the CCPA, and will not sell or exchange such personal data for anything of value.

20.3 Privileged and Proprietary Information . NORESCO's systems, means, cost, and methodologies of evaluating, implementing, accomplishing and determining energy savings and the Scope of Work shall be considered privileged and proprietary information. CITY shall use the same level of effort to protect and safeguard such information as it employs to safeguard its own confidential information. CITY shall not disclose such proprietary information without the express written consent of an officer of NORESCO unless required to do so by statute or regulation. When any request for disclosure of such information is made under any applicable freedom of information law ("FOIL"), CITY will provide prompt verbal and written notice to NORESCO such that NORESCO will have the opportunity to timely object under FOIL should it desire to object to such disclosure of that information in whole or in part. In the event that CITY is required to make a filing with any agency or other governmental body, which includes such information, CITY shall notify NORESCO and cooperate with NORESCO in the event NORESCO seeks confidential treatment of such information included within any such filing or, if all such information cannot be protected from disclosure, to request that CITY be permitted to redact portions of such information, as NORESCO may designate and if permitted by law, from that portion of said filing which is to be made available to the public.

20.4 Exhibits; Precedence. All documents referenced as exhibits in this Agreement are hereby incorporated into this Agreement by this reference. In the event of any inconsistency between the express provisions of this Agreement and any provision of an exhibit, the provisions of this Agreement shall prevail. The following exhibits are attached to this Agreement:

Exhibit A – Scope of Services
Exhibit A-1 – Compensation Schedule
Exhibit A-2 – Guidelines for Measurement & Verification Plan 13 Exhibit A-3 – Minimum Savings Guarantee

20.5 Time of the Essence. Time is of the essence in respect to all major milestones of this Agreement that specify a time for performance.

20.6 Nuisance; Compliance with Laws. NORESCO shall not maintain, commit or permit the maintenance or commission of any nuisance in connection with performing the Services. In performing the Services, NORESCO shall abide by and conform with and to any and all applicable laws of the United States and the State of California, and the applicable local laws, regulations, and policies of City of Buena Park.

20.7 Permits and Licenses. NORESCO, at its sole expense, shall obtain and maintain during the term of this Agreement all appropriate permits, licenses, and certificates that may be required in connection with performing the Services. Should NORESCO require assistance and/or coordination with CITY to obtain such permits, CITY shall assis t NORESCO to the extent reasonably necessary.

20.8 Covenant against Discrimination. In performing this Agreement, NORESCO shall not engage in, nor shall it permit its agents to engage in, discrimination in employment of persons because of their race, reli gion, color, national origin, ancestry, age, physical handicap, medical condition, marital status, sexual gender or sexual orientation, except as permitted pursuant to Section 12940 of the California Government Code.

20.9 Governing Law; Venue. The terms of this Agreement, and any dispute arising from the relationship between the Parties to this Agreement, shall be governed by and construed in accordance with the laws of the State of California, without regard for its conflicts of laws principles, except that any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be applied in interpreting this Agreement. The venue for resolving any dispute that arises under or relates to this Agreement (whether contract, tort or both) shall be a court with jurisdiction that is located in the County of Orange, California.

20.10 Cost of Litigation. If any legal action is necessary to enforce any provision of this Agreement or for damages by reason of an alleged breach of any provisions of this Agreement (whether in contract, tort, and/or equity), the prevailing Party shall be entitled to receive from the losing Party all attorneys’ fees, costs and expenses in such amount as the courts may determine to be reasonable.

20.11 Waiver. No delay or omission to exercise any right, power or remedy accruing to CITY under this Agreement shall impair any right, power or remedy of CITY, nor shall it be construed as a waiver of, or consent to, any breach or default. No waiver by CITY of any breach, any failure of a condition, or any right or remedy under this Agreement shall be: (1) effective unless it is in writing and signed by the Party making the waiver; (2) deemed to be a waiver of, or consent to, any other breach, failure of a condition, or right or remedy; or (3) deemed to constitute a continuing waiver unless the writing expressly so states.

20.12 Efficient Performance. NORESCO shall commence, carry on and complete its assignments with all practicable dispatch, in a sound, economical, and efficient manner in accordance with all applicable laws and generally accepted industry and applicable professional standards.

14 20.13 No Third Party Beneficiaries. This Agreement is made solely for the benefit of the Parties to this Agreement and their respective successors and assigns, and no other person or entity may have or acquire a right by virtue of this Agreement.

20.14 When Rights and Remedies Not Waived. In no event shall the making by CITY of any payment to NORESCO constitute or be construed as a waiver by CITY of any breach of covenant, or any default that may then exist, on the part of NORESCO, and the making of any such payment by CITY while any such breach or default shall exist shall in no way impair or prejudice any right or remedy available to CITY with regard to such breach or default.

20.15 Severability. If any part, term or provision of this Agreement shall be held illegal, unenforceable or in conflict with any law of a federal, state, or local government having jurisdiction over this Agreement, the validity of the remaining portions or provisions shall not be affected by such holding.

20.16 Captions. The titles of the sections, subsections and paragraphs set forth in this Agreement are inserted for convenience and reference only and shall be disregarded in construing or interpreting any of the provisions of this Agreement and the rights or obligations of the Parties to this Agreement.

20.17 Word Usage. Unless the context clearly requires otherwise, (a) the word “shall” is mandatory and “may” is permissive; (b) “or” is not exclusive; and (c) “includes” or “including” are not limiting.

20.18 Integrated Agreement and Modification of Agreement . This Agreement, and all exhibits referred to in this Agreement, constitutes the final, complete and exclusive statement of the terms of the agreement between CITY and NORESCO with respect to the subject matter of this Agreement. This Agreement supersedes all prior or contemporaneous oral or written negotiations, representations or agreements of the Parties. No verbal agreement or implied covenant shall be held to vary the provisions of this Agree ment. No Party has been induced to enter into this Agreement by, nor is any Party relying on, any representation or warranty except those expressly set forth in this Agreement. This Agreement may be modified only by a writing signed by both Parties.

20.19 Authority to Bind Parties. Each of the undersigned hereby represents that he or she has the authority to execute this Agreement on behalf of his or her contracting Party.

20.20 Force Majeure. Neither Party shall be deemed in default and performance shall be excused, where delays or defaults are caused unavoidably and beyond the reasonable control of the Party seeking the delay by a “Force Majeure Event”. An extension of time for any such cause shall be for the period of the delay and shall commence to run from the time of the commencement of the cause, if notice by the party claiming such extension is sent to the other party within sixty (60) days of the commencement of the cause. If notice is s ent after such sixty (60) day period, then the extension shall commence to run no sooner than sixty (60) days prior to the giving of such notice. Times of performance under this Agreement may also be extended in writing by the mutual agreement of the Party Representatives. For purposes of this Section 20.20, “Force Majeure” means: Acts of God; unusually severe weather; wars; terrorist acts; fire; floods; earthquakes; casualties; a local, state, or federal declaration of emergency based on an epidemic or pandemic including any quarantine or other health-related orders, directives, regulations, laws or other requirements implemented in response to such epidemic or pandemic; strikes, walkouts lockouts, and other labor difficulties; regional and enduring breakdown in communication facilities, 15 electrical service, or wireless service; failure or inability to secure materials or labor by reason of priority or similar regulations or order of any governmental or regulatory body; or mediation, arbitration, litigation, or other administrative or judicial proceeding involving this Agreement.

In recognition of the obligations stated in this Agreement, the Parties have executed this Agreement on the date indicated above by and through their duly authorized representatives.

CITY OF BUENA PARK
a California municipal corporation

NORESCO, LLC

Signature

Name: Name:

Title: Title:

*If NORESCO is a corporation, then
pursuant to California Corporations Code
Section 313 this Agreement must be
executed by either: (1) the chairperson of
the board; (2) the president; or (3) the vice
president plus any one of the following: the
secretary, any assistant secretary, the chief
financial officer, or any assistant treasurer.

Signature

Name:

Title:

ATTEST:

BY:

Adria M. Jimenez, CITY Clerk

APPROVED AS TO FORM:

BY:

Christopher Cardinale, CITY Attorney

16 EXHIBIT A

SCOPE OF SERVICES

1. DEFINITIONS. All capitalized terms not defined in this Scope of Services shall have the definition set forth in the body of that certain Agreement for Progressive Desing-Build Services between the Parties dated August __, 2024 (“Agreement”).

2. GENERAL SCOPE . The Services to be provided by NORESCO shall include those comprehensive assessment, preliminary design, and preconstruction services that are described in this Scope of Services (the “Services”) in connection with CITY exploring the feasibility of completing certain energy and water conservation, energy efficiency, energy generation and related energy capital improvements projects at designated CITY-owned facilities.

3. IDENTIFICATION OF FACILITIES. NORESCO shall provide Services for the following “Facilities” owned and operated by CITY:

3.1 City Yard: 6955 Aragon Cir, Buena Park, CA 90620.

3.2 City Hall: 6650 Beach Blvd, Buena Park, CA 90621.

3.3 Police Department: 6640 Beach Blvd, Buena Park, CA 90622.

3.4 Community Center: 6688 Beach Blvd, Buena Park, CA 90621.

3.5 Ehlers Events Center: 8150 Knott Ave, Buena Park, CA 90620.

3.6 William Peak Park: 7225 El Dorado Dr, Buena Park, CA 90620.

3.7 Boisseranc Park: 7520 Dale St, Buena Park, CA 90620.

3.8 Brenner Park: 7401-7413 Ridgeway Dr, Buena Park, CA 90620.

4. PROJECT. NORESCO shall provide Services for the following energy conservation, energy efficiency, energy generation and related energy capital improvements, and water conservation measures (each an “ECM”), at the Facilities as specified:

4.1 Interior and Exterior LED Lighting : Upgrade or replace LED lighting for the interior and exterior of Facilities, with the exception of exterior lighting at the Ehlers Events Center (already complete).

4.2 HVAC Replacements: City Hall, Police Department, William Peak Park, Boisseranc Park, and Brenner Park.

4.3 HVAC Controls: All Facilities.

4.4 EV Charging Stations : City Hall, Police Department, Community Center, Ehlers Events Center, and City Yard. Conduits or charging stations should be planned for fleet charging as well as public interface charging.

4.5 Solar PV Installation: Carport solar PV installations in specified areas of the parking lots at Ehlers Events Center, City Hall, the Community Center, and City Yard, and rooftop solar PV installations at City Hall, Police Departmen t, and City Yard. A timely NEM 2.0 Application to Southern California Edison has been submitted previously on CITY’s behalf and NORESCO shall comply with all requirements necessary to maintain CITY’s grandfathered NEM 2.0 status. Additionally, NORESCO will explore the addition of battery energy storage systems for incorporation into existing building electrical systems and proposed PV systems.
17 4.6 Water Conservation Measures : Water conservation measures at the Facilities and in particular William Peak Park, Boisseranc Park, and Brenner Park.

4.7 Other ECMs: NORESCO may investigate any other energy conservation measures or improvements at the Facilities believed to be cost effective and consistent with the “Project Goals” defined in Section 4.8, such as mechanical pool equipment upgrades at the Park facilities.

4.8 Project Goals. NORESCO will design a Project achiev ing the following goals and objectives:

.1 Project costs will not exceed $20,000,000 and be paid from a guaranteed reduction in utility costs, procurement of utility incentives, tax credits or incentives, and/or energy grants, with estimated savings in ongoing utility costs to include assumptions for ongoing maintenance, repairs, and replacement costs over the term of the financing.

.2 Reduce existing energy consumption and peak energy demands at the Facilities.

.3 Reduce existing maintenance and other operational costs of the Facilities.

.4 Upgrade, retrofit, or replace obsolete and/or inefficient systems existing at the Facilities.

.5 Maintain a safe and consistent environment at Facilities that offer s reasonable levels of comfort to occupants.

.6 Ensure functionality and compatibility of Project features with existing equipment at Facilities.

.7 Utilize technology to achieve optimum system performance and cost savings at Facilities.

.8 Minimizes financial and technical risks of the Project and Facilities to CITY.

5. ASSESSEMENT, DESIGN, AND PRECONSTRUCTION SERVICES

5.1 General Scope. NORESCO shall perform an Investment Grade Audit (“IGA”) that includes the following information and activities, the results of which will be presented to CITY in the Final Investment Grade Audit Report (“Final IGA Report”) described in Article 5.3.2 of this Scope of Work:

.1 An on-site survey of each Facility and all potential ECMs to be installed at each.

.2 A summary of the historical energy and water use of each Facility. Energy or water use anomalies or high costs per square foot will be evaluated and recommendations will be made.

.3 A thorough description of each recommended ECMs for each Facility, including the following for each ECM: (a) a clear description of the current circumstances and practices; (b) estimates of design and installation costs; (c) efficiency or performance levels and equipment characteristics; d estimates of annual maintenance and replacement costs; (e) estimates of annual energy and cost savings accounting for interac tion between different ECMs, and; (f) the useful life of the ECM and any related disposal or extraordinary decommissioning or replacement costs.

.4 A thorough description for how each ECM will be developed, designed, and implemented in a manner that does not compromise space conditions of the Facilities, including for each ECM: (a) how the ECM will modify existing building systems ; (b) the ECM’s compatibility with existing systems; (c) proper operation & maintenance procedures required to maximize the ECM’s savings potential; 18 and (d) additional or modified Facility operation requirements, if any, necessitated by implementing the ECM. Federal, state, and local laws, regulations and standards will be consulted and incorporated into the design and target levels, and evidence of compliance with applicable laws, regulations and standards will be provided where appropriate.

.5 The Final IGA Report delivered to CITY within 180 calendar days of the date of the Agreement’s Effective Date.

5.2 Detailed Scope: NORESCO shall follow the detailed task list for completing the Final IGA Report, except as an alternative process is otherwise expressly approved in writing and in the sole and absolute discretion of CITY.

.1 Detailed Task List. The IGA will be completed in intervals with review milestones at the “50% IGA Phase,” “90% IGA Phase,” and “Final IGA Report” levels of completion each as described in more detial below.

(a) 50% IGA Phase – Preliminary Review of Facilities and ECMs.

i. Collect General Facility Information . NORESCO shall coordinate all Facility visits and work with CITY Representative in advance so as to not interfere with normal CITY operations. NORESCO shall collect data and background information from CITY concerning operation and energy and water use for each Facility , including any changes to operation and energy use anticipated within the next five years. NORESCO will work diligently to verify accuracy of information provided and to confirm or correct as needed. Where informatio n is not readily available from CITY, NORESCO will make a diligent effort to collect such information through inspection s, staff interviews, and utility providers. CITY will work diligently to furnish NORESCO, upon request, accurate and complete data and i nformation, as available, about the Facilities. CITY will allow NORESCO reasonable access to CITY staff to ensure understanding of existing systems and opportunities. Without limiting the foregoing, the following information will be provided by CITY to NORESCO, to the extent reasonable feasible , for the 36 -month period immediately preceding the Effective Date, with any estimations and/or assumptions made during IGA to be mutually agreed upon to by the Parties:

a. General Facility Information: building list with square footage and age (including age of major remodels or additions); Construction data for buildings and major additions including building envelope, window specifications/performance and roof/wall assembly; and general use of facility.

b. Utility Information: utility company invoices; most recent energy supply contracts to determine baseline cost analysis.

c. Sub Meter Information : historical thermal and electrical sub meter data, if available.

d. Equipment and Facility Information: equipment descriptions (all major energy consuming or saving equipment); facility descriptions (any structural or building use changes); past changes (record of any improvements or modifications related to energy or operational efficiencies that have been installed during the past three years); future plans (current or future plans regarding building or equipment modifications ; drawings and specifications (drawings, as reasonably available , may include mechanical, plumbing, electrical, building automation a nd temperature controls, structural, architectural, modifications and remodels); original construction submittals and factory data (specifications, pump curves, etc., as reasonably available ); floor plans; hazardous materials (inspection, abatement and/or removal records, as applicable).

e. Facility Operation Information : occupancy schedules ; facility usage information; current energy management procedures ; current operational practices ; operating engineer logs, maintenance work orders, etc., as available ; records of maintenance expenditures on energy -using 19 equipment, including service contracts; existing issues with comfort levels, controls or equipment reliability; use data loggers and conduct interviews with facility operation and maintenance staff.

ii. Inventory Existing Systems and Equipment. For each Facility, NORESCO will conduct a physical inspection and compile an inventory of existing systems and equipment related to the proposed ECMs, and address the following considerations:

a. The loads, proper s izing, efficiencies or hours of operation for each system (where measurement costs, facility operating or climatic conditions necessitate, engineering estimates may be used, but for large fluctuating loads with high potential savings, appropriate measurements are required unless waived by CITY).

b. Current operating condition for each system;

c. Remaining useful life of each system;

d. Feasible replacement systems; and

e. Hazardous materials and other environmental concerns.

iii. Establish Baselines:

a. Estimate Baseline Loads

(i) Estimate loads, usage and/or hours of operation for applicable major end uses of total facility consumption including: lighting, heating, cooling, motors (fans and pumps), plug loads, kitchen equipment, and other major energy using equipment.

(ii) Where loading or usage are highly uncertain (including variable loads such as cooling), NORESCO will use its best judgment, use of existing emergency management control system capabilities for trend data, or measurements from data loggers. NORESCO should not assume that equipment run hours equal the operating hours of the building(s) or facility staff estimates.

b. Estimate Baseline Usage

(i) Examine utility supply contracts and utility rate structure applicable to each building.

(ii) If building -specific utility data is not available or useful, provide other means (for example sub meters and/or data loggers) to establish baseline consumption. Establish base year and/or baseline consumption.

(iii) Present base year and/or baseline consumption in terms of energy units (kWh, kW, ccf, Therms, or other units used in bills), in terms of dollars, and in terms of dollars per square foot.

(iv) Describe the process used to determine the base year an d/or baseline consumption and demand (averaging, selecting most representative contiguous 12 months, or sampling; sampling may include temporary sub meters or data loggers where needed).

(v) Consult with facility personnel to account for any anomalous schedule or operating conditions on billings or equipment conditions that could skew the base year and/or baseline representation.

(vi) NORESCO will (as best as possible) account for periods of time when equipment was broken or malfunctioning in calculating the base year or baseline definition period. 20 c. Reconcile Estimates : Reconcile annual end -use estimated consumption and demand with the metered data collected during the IGA phase and extrapolated to reflect the annual base year consumption. The purpose of this analysis is to place reasonable “real world” limits on potential savings.

d. Baseline Adjustments: Propose adjustments to the baseline for energy saving measures that will be implemented in the future , provided that b aseline adjustments must be disclosed and may be made only with advance approval by CITY.

iv. Evaluate Proposed ECMs.

a. Interviews: Interview the facility manager and a sampling of maintenance staff, subcontractors and occupants of each building regarding: facility operation, including energy management and operating procedures; equipment maintenance problems; comfort problems and requirements; equipment reliability; projected equipment needs; occupancy and use schedules for the facility and specific equipment; facility improvements – past, planned and desired; other project sustainability goals, metrics or standards (i.e. LEED, ENERGY STAR, Net Zero Energy, etc.)

b. Surveys: Survey major energy-using equipment necessary to develop the ECMs listed in Article 4 and any other ECMs deemed cost effective following analysis.

c. Considerations: Consider the following for each ECM:

(i) Comfort and maintenance problems;

(ii) Energy use, loads, proper sizing, efficiencies and hours of operation;

(i) How the measures work together (i.e. lighting upgrades can introduce less heat which requires less space cooling);

(ii) Current operating condition;

(iii) Remaining useful life;

(iv) Feasibility of system replacement and replacement costs;

(v) Future plans for equipment replacement or building renovations;

(vi) Facility operation and maintenance procedures that could be affected; and

(vii) Capability to monitor equipment or system performance and verify savings.

d. List ECMs: Develop a preliminary list of all potential ECMs to be considered for inclusion in the Project. Consider technologies in a comprehensive approach including, but not limited to those measures listed in Article 4 of this Scope of Work.

e. Evaluate ECMs:

(i) Estimate the cost, savings, and life expectancy of each proposed ECM and the aggregate Project. CITY acknowledges that preliminary cost estimates are budgetary and are subject to change pending further, more detailed analysis. 21 (ii) Conduct a preliminary analysis of potential ECMs using life cycle cost analysis and examining the value of non-energy benefits of specific measures.

f. Present 50% IGA Phase Findings: Submit the preliminary findings and list of ECMs to CITY as follows:

(i) Discuss how the Project’s cost, economics, savings, and financials will meet the Project Goals listed in Article 4.8.

(ii) Discuss assessment of energy use, savings potential, and ECM opportunities.

(iii) CITY shall have the option to reject calculations of savings, potential savings allowed, ECM recommendations, or the entire Project, or to request recalculations of savings, potential savings allowed, or related to project recommendations .

(iv) NORESCO and CITY shall work together cooperatively and in good faith to reach an agreement upon a list of recommended ECM’s before proceeding to the 90% Phase.

g. Construction Contract: During preparation of the 50% IGA Report, the Parties shall negotiate in good faith the terms and conditions that will be included in a Construction Contract should CITY exercise discretion to authorize NORESCO to perform Construction Work after completing of the Final IGA Report. The terms and conditions to be included in the Construction Contract shall, in addition to any other terms that may be negotiated by the Parties, be consistent with this Agreement, comply with requirements of California law, and include provisions relating to compliance with the City’s Community Workforce Agreement.

iv. Deadline to Complete 50% IGA Phase . NORESCO will complete the 50% IGA Phase within 90 calendar days of the Effective Date, and thereafter present the associated findings and recommendations to the City Council during a public meeting.

v. City Council Review and Authorization to Proceed with 90% IGA Phase. After reviewing the presentation and findings of the 50% IGA Phase, the City Council will, in its sole and absolute discretion, take one of the following actions: (1) continue the matter to a future date certain for continued discussion, deliberation, and action; (2) authorize NORESCO to proceed with the 90% IGA Phase; or ( 3) decline to pursue the Project and terminate the Agreement pursuant to Section 16.3, in which case no Compensation will be due NORESCO pursuant to Section 4.1.

(b) 90% IGA Phase – Refined Review of Facilities and ECMs : NORESCO will estimate the cost, savings and life expectancy of each of the recommended ECMs mutually agreed upon by NORESCO and CITY.

i. Savings Analysis

a. Follow the methodology of ASHRAE or other nationally -recognized authority following the engineering principle(s) identified for each ECM.

b. Utilize assumptions, projections and baselines which best represent the true value of future energy or operational sa vings. Include accurate marginal costs for each unit of savings at the time the audit is performed, documentation of material and labor cost savings, adjustments to the baseline to reflect current conditions at each Facility, calculations which account for the interactive effects of the recommended ECMs.

22 c. Use best judgment regarding the employment of instrumentation and recording durations so as to achieve an accurate and faithful characterization of energy use.

d. Provide analysis methodology, supporting calculations and assumptions used to estimate savings.

e. Manual calculations should disclose essential data, assumptions, formulas, etc. so that a reviewer could replicate the calculations based on the data provide d.

f. For savings estimates using computer simulations, NORESCO shall provide program files and all inputs and assumptions used, if requested by CITY.

g. Provide detailed calculations for any utility rate savings proposals.

h. Provide detailed supporting calculations for any proposed maintenance savings.

i. Estimate any environmental costs or benefits of the proposed ECMs (e.g. disposal costs, avoided emissions, water conservation, etc.).

j. Specify facility operations and maintenance procedures which will be affected by the installation/implementation of the proposed ECMs.

k. Establish standards of comfort for each building which will be discussed and agreed to by both Parties and included in the IGA report.

ii. Inflation & Escalation Rates: Any general inflation rates and/or escalation rates and the calculator used to determine those rates will be pre-approved by CITY. Escalation rates shall be justified and at a minimum based on Department of Energy’s Energy Escalation Rate Calculator (EERC).

The EERC can be found at the following website: https://pages.nist.gov/eerc/. CITY may authorize NORESCO to utilize additional resources to further vet escalation values.

iii. Cost Estimates: Provide detailed estimates of costs associated with the design, installation, implementation and commissioning of each ECM proposed in the IGA including breakouts for labor, materials, and equipment. Cost estimates will assume compliance with the terms and conditions of the Construction Contract, and markups and fees of NORESCO must be consistent with the “Compensation Schedule” in Exhibit A-1 (“Compensation Schedule”). Provide estimates of monthly and/or costs associated with sustaining the project perform ance including breakouts for maintenance fees, measurement and monitoring fees, and training fees.

iv. Financing Plan: Provide a preliminary financing plan to pay for the Project, which will be completely financed through a guaranteed reduction in utility costs, operational costs and the procurement of utility incentives and/or grants. The Project (equipment, installation, maintenance, monitoring, and related costs) are expected to be financed through a separate contract with a third-party financier that will generally incur no initial capital costs, with the option for CITY to provide capital if desired, and achieving significant long -term cost savings. Ongoing cost and savings assumptions shall assume costs for maintenance, repair, and replacement of the Project elements. CITY recognizes the Services expressly exclude municipal financial advisor services, and CITY expressly reserves the right to independently review, solicit, and obtain financing for the Project.

v. Measurement and Verification Pl an: Develop a “Measurement and Verification Plan” that is consistent with the requirements of the “Guidelines for Measurement & Verification Plan” that are set forth in Exhibit “ A-3” for each ECM. NORESCO will use best industry standards for Measurement and Verification Plan development. At a minimum, international performance measurement and verification protocol ( IPMVP) shall be used , and additional standards including F ederal Energy Management Program measurement and verification guidelines should be considered. 23 v. Commissioning Plan: Provide a preliminary commissioning plan for each ECM that outlines the design intent, objectives, organization, schedule, documentation requirements, and testing procedures used to commission each ECM.

vi. Operations and Maintenance Plan: Develop a preliminary operations and maintenance plan for each ECM. The plan should assume that following the construction phase, NORESCO will monitor project savings, including but not limited to providing an energy savings guarantee following the International Performance Measurement and Verification Protocol (IPMVP). Prior to entering into a contract to construct the Project, NORESCO will present recommendations and annual costs in accordance with the IPMVP to measure and verify the guaranteed savings. CITY shall have sole ability to determine the approach to measurement and verification.

vii. Training Plan: Develop a preliminary training plan for the proposed ECMs.

The plan should assume that a s part of the construction close -out of the Projects, NORESCO will provide training to CITY personnel in the operation and maintenance of the equipment installed; operating and maintenance manuals for all equipment installed or provided; and turn over all warranty information to CITY in CITY’s name. At CITY’s sole discretion, it may negotiate on -going service maintenance, repair, or replacement contracts for the Project elements with NORESCO or other qualified vendors.

viii. Deadline to Complete. NORESCO will complete the 90% IGA Phase within 60 calendar days after CITY’s authorization to proceed, and the associated findings and recommendations will be presented to CITY Representative.

ix. City Review and Authorization to Proceed with Final IGA Phase. CITY shall have at least 30 calendar days to review and generate c omments and questions to NORESCO, and when the 90% IGA Phase is complete to the reasonable satisfaction of CITY, CITY Representative will issue written authorization for NORESCO to proceed with the Final IGA Report.

.2 Investment Grade Audit Report : The final Investment Grade Audit Report (“Final IGA Report”) will include the following:

(a) Overview

i. Contact Information

ii. Executive Summary

iii. Description of the Facilities, ECMs considered, and the analysis, methodology, and results.

iv. Summary table presenting the installation cost and savings estimates for each recommended ECM, as well as the Project as a whole.

v. Summary table of recommended ECMs that shows, itemized for each individual ECM and for the total Project, costs for design and construction, annual maintenance, first -year cost avoidance (in dollars and energy units), simple payback, and equipment service life.

vi. Any cost savings due to changes to utility rates or commodity costs due to changes in metering, commodity procurement, etc.

vii. Summary of annual energy use and costs by fuel type and costs of existing or base year condition.

viii. Calculation of energy and cost savings expected if all recommended ECMs are implemented, and total percentage savings of total facility energy cost for each Facility. 24 ix. Description of the existing Facilities and their mechanical and electrical systems, but limited to the ECMs selected during the 50% IGA Phase.

x. Summary description of the recommended ECMs, including estimated costs and savings for each as detailed above.

xi. Summary of recommended CITY related actions (i.e. internal occupant energy reduction programs or competitions, plug load reduction measures, etc.)

xii. Discussion of ECMs considered but not investigated in detail.

xiii. Summary of Project benefits beyond energy cost savings (i.e. improvement to building environment, greenhouse gas reduction, etc.). Qualitative at a minimum, quantitative would be best.

xiv. Conclusions and recommendations.

(b) Baseline and/or base year energy use

i. Description and itemization of current billing rates, including schedules and riders.

ii. Summary of all utility bills for all fuel types and water.

iii. Identification and definition of base year consumption and description of how established.

iv. Provide detail on baseline adjustments, if any, as approved by CITY.

v. Reconciliation of estimated end use consumption (i.e. lighting, cooling, heating, fans, plug loads, etc.) with base year (include discussion of any unusual findings)

i. Existing conditions

ii. Description of equipment to be installed and how it would function.

iii. Detailed descriptions for each ECM including analysis method, supporting calculations (submitted in appendices), results, proposed equipment and implementation issues, including a discussion of facility operations and maintenance procedures that will be affected by installation/implementation.

iv. Plan for installing or implementing the recommendation.

v. Discussion of the conclusions, observations and caveats regarding cost and savings calculations.
(d) Savings calculations

i. Base year energy use and cost

ii. Post-Project energy use and cost

25 iii. Utility rates to be used in savings calculations and guaranteed savings verification reports

iv. Savings calculations including analysis methodology, supporting calculations and assumptions used.

v. Annual savings calculations. The cost savings for all ECMs must be estimated for each year during the contract period. Savings must be able to be achieved each year (cannot report average annual savings over the term of the contract).

vi. Savings calculations must be limited to savings allowed by CITY as described above.

vii. Percent cost-avoidance projected.

viii. Description and calculations for any proposed rate changes.

ix. Explanation of how savings interactions between retrofit options is accounted for in calculations.

x. Operation and maintenance savings, including detailed calculations and description. Ensure that maintenance savings are only applied in the applicable years and only during the lifetime of the particular equipment.

xi. If computer simulation is used, inclu de a short description and state key input data and software used. If requested by CITY, access will be provided to the program and all assumptions and inputs used, and/or printouts shall be provided of all input files and important output files and included in the IGA Report report with documentation that explains how the final savings figures are derived from the simulation program output printouts.

xii. If manual calculations are employed, formulas, assumptions and key data shall be stated.

xiii. Conclusions, observations, caveats

(e) Guaranteed Maximum Price . A narrative of the construction scope of work and open book pricing model that builds up the cost to a total guaranteed maximum price (“GMAX Price” to complete design and construction of the Project in accordance with the terms and conditions of the Design- Build Construction Contract (“Construction Work ”). The GMAX Price shall be the total, not to exceed compensation that will be paid to NORESCO in connection with the Project, including withou t limitation: all anticipated costs associated with design, procurement of equipment or materials, installation, and construction of the Project; equipment and installation summaries for major mechanical components; detailed lighting fixture counts; subcontractor and material supplier costs, all markups and fees. The GMAX Price shall include and comply with the following:

i. Allocation of Work. The GMAX Price shall be consistent with the markup structure and format presented in the “Compensation Schedule” i n Exhibit A-1, and shall clearly designate the portion of the Construction Work (including materials or equipment ) that will be self -performed or provided by NORESCO, and those portions that will be completed with the use of subcontractors, suppliers, or other third -party contractors or consultants . All subcontractors , suppliers, or subconsultants shall be 26 designated, together with the scope and cost of the work to be performed by each , on the standard bid forms provided by CITY.

ii. Subcontractors. In awar ding construction subcontracts with a value exceeding one -half of 1 percent of the GMAX Price allocable to construction work for the Project, NORESCO shall comply with Public Contracts Code section 22185.6(b) which requires:

(a) Public notice of availability of work to be subcontracted in accordance with the publication requirements applicable to the competitive bidding process of the local agency, including a fixed date and time on which qualifications statements, bids, or proposals will be due;

(c) Establishing reasonable qualification criteria and standards; (c) Awarding the subcontract on a best value basis. The process may include prequalification or short-listing;
(d) Subcontractors awarded construction subcontracts must be afforded all the protections of Chapter 4 (commencing with Section 4100) of Part 1 of the California Public Contracts Code; and
(e) A construction subcontractor licensed pursuant to Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Cod e that provides design services used on the Project shall not be subject to any liability arising from their design if the construction subcontract for that design is not performed by that subcontractor.

iii. Open Book Pricing . CITY shall have the right to review all solicitations or request for bids or quotes issued by or to NORESCO, together with all bids or price quotes received from subcontractors or material suppliers, and any other documents or materials in NORESCO’s possession relating to the proce ss outlined in this Article, which shall be considered an “open book pricing & procurement.”

iv. Review of Subcontractors . CITY has the right to request a review and/or replacement of any proposed contractor or materials supplier in certain limited cir cumstances, including in cases of a conflict of interest with CITY, or where CITY has had documented defaults or noncompliance from a particular contractor or supplier, in which case the GMAX Price shall be adjusted to account for the substitute provider.

c. Updated Project-Related Plans. To the extent necessary or appropriate , provide updated versions of each of the following based on the and Project described in the Final IGA Report:

Financing Plan; Commissioning Plan ; Measurement and Verification Plan; Operations and Maintenance Plan; Training Plan.

d. Guaranteed cost savings . NORESCO shall guarantee to CITY that the Project described in the Final IGA Report will result in energy savings in the amount and for the period of time set forth in the Measurement and Verification Plan. In the event the Energy and Cost Savings achieved during any guarantee year are less than the guaranteed energy and cost savings as defined in the written savings guarantee, which shall be substantially in the form set fo rth in Exhibit A -4 (“Savings Guarantee”), NORESCO shall pay to CITY an amount equal to the shortfall, subject to CITY’s compliance with applicable terms and conditions set forth in the Savings Guarantee. If applicable, NORESCO shall remit such payments to CITY within forty -five (45) days of CITY’s written notice to NORESCO requesting payment.

NORESCO shall also be obligated to remedy the ECM deficiencies causing the shortfall, to the extent reasonably possible, at no cost to CITY. The exception to this are shortfalls that are caused by CITY non - 27 compliance to practices and standards developed/outlined in the IGA and not followed and Force Majeure Events.

e. Project Timelines and Narrative. Provide a narrative or statement indicating the duration of the energy performance contract, duration of any financing contracts, timetables for completing engineering and construction work, and a detailed description of services to be provided during remaining design and construction.
f. Other

i. Discussion of circumstances that Facilities will incur after performance contract ends. Consider operation and maintenance impacts, staffing impacts, budget impacts, etc., and identify maintenance responsibilities.

ii. Compatibility with existing energy management control and/or building automation systems.

iii. Complete appendices that document the data used to prepare the analyses. Describe how data were collected.

g. Deadline to Complete Final IGA Report. NORESCO will complete and submit the Final IGA Report within 60 calendar days after City Representative’s written authorization to proceed, and as soon thereafter as the matter may be scheduled NORESCO will present the Final IGA Report to the City Council during a public meeting.

5.3 Good Faith Negotiating Period. The GMAX Price shall be valid for at least 90 calendar days after presentation to CITY Council, during which time CITY and NORESCO shall negotiate exclusively and in good faith in efforts to reach an agreement on the GMAX Price and ECMs to be included in t he Project (“Negotiating Period”). At any time during the Negotiating Period, the Parties may amend this Agreement to authorize NORESCO to proceed with completing the remaining turnkey design , preconstruction construction, and implementation activities of a Project for the GMAX Price subject to the terms and conditions in the Construction Contract.

5.4 Options After Negotiating Period . After expiration of the Negotiating Period, the Parties may continue negotiations but the GMAX Price may be increased by NORESCO to pass through actual documented cost increases in the Project, and City, in its sole and absolute discretion, may solicit proposals from other design-build entities and award a contract to a responding entity for the Project on a best value basis. In such event, the design professionals responsible for the Services on behalf of NORESCO shall have sole liability for their design errors and omissions if CITY elects to use their complete and stamped designs with subsequent design build entities or licensed contractors.

28 EXHIBIT A-1: COMPENSATION SCHEDULE

MAXIMUM

MARKUPS
*To be completed before
execution of Master
Agreement

FINAL PROJECT MARKUPS & TOTAL COSTS

*To be completed with Final IGA
Project Budget Percent of Total
Project Price
Percent of Total
Project Price
Price/Cost
A Subcontractor Costs (Contractor
Costs to ESCO)
N/A
B Other Direct Purchases of
Equipment, Material, Supplies
(Supplier Costs to ESCO)

C Total of Hard Costs N/A c = a + b
D Project Development 8%
E Design/Engineering 8.25%
F Project Management 8.5%
G Permits 2%
H Performance Bond 1%
I Payment Bond/Insurance 1.25%
J Commissioning 1.5%
K Measurement & Verification 1.5%
L Training 2.5%
M Contingency 5%
N Warranty Service 3.5%
o Total of ESCO Fees o = sum(d:n)
p Overhead 14.5%
q Profit 5%
r PROJECT PRICE SUB TOTAL
w/OH &P
r = C + o + p + q
Assumptions for Cost Markup Table Above:

Rows D - N are calculated as a percent of Row C
Row P is calculated as a percent of the sum of Rows C & O Row Q is calculated as a percent of the Sum of Rows C, O, and P.

NORESCO COMPENSATION STRUCTURE
Hourly Rate Table – 2024
Classification Rate / Hour
Proposal Administrator $103
CAD Technician
$110
Construction Coordinator
$103
Associate Engineer, Associate Project Manager
$117
Energy Engineer, Project Manager, Project Developer
$140
Energy Engineer 2, Project Manager 2, Project Developer 2 $157
Commissioning
$173
29 M&V Specialist
$129
Sr. Energy Engineer, Sr. Project Manager, Sr. Project Developer $197 Mgr/Dir Construction, Mgr/Dir Engineering, Mgr/Dir Prj Development $239 Executive time - VP Construction, VP Project Development, Exec VP $295

Annual Fees for Maintenance, Measurement & Verification

First Year Annual Service Fees Maximum Percent of
Annual Savings
*completed prior to signing
Construction Work Order
Final Annual Service Fee

*Determined in the IGA
Measurement & Verification TBD
On-going Training TBD
Operations & Maintenance TBD

30 EXHIBIT A-2

GUIDELINES FOR MEASUREMENT & VERIFICATION PLAN

A. Plan and Report. A Measurement and Verification (“M&V Plan”) will be developed by NORESCO per the most current International Performance Measurement and Verification Protocol (“IPMVP”) guidelines for M&V of annual guaranteed savings. The M&V Plan and Report shall be thoroughly reviewed by CITY and its 3rd Party Representative. Energy-related cost savings shall be measured and/or calculated as specified in the savings M&V Plan. Upon acceptance of the Project as complete by CITY, an annual M&V Report shall be provided to CITY for the previous performance year to provide verification of savings.

The M&V Report shall be submitted within sixty (60) days of the anniversary of the performance period commencement date.

B. Contents of M&V Plan. The M&V Plan shall include the processes, tables and information set forth in this section in substantially the form provided:

1. Index of Processes and Tables:

 Risk, Responsibility and Performance Matrix.
 M&V Plan and Savings Calculation Methods
 Proposed Annual Savings Overview
 Site Use and Savings Overview
 M&V Plan Summary
 Schedule of Verification Reporting Activities
 Contractual utility rates to be used to calculate annual cost savings  Proposed Annual Savings For ECM
 Expected Year 1 Savings for ECM

2. Risk, Responsibility and Performance Matrix. NORESCO shall complete and include the following matrix in the M&V Plan to summarize the allocation of responsibility for key items related to M&V:

RISK, RESPONSIBILITY AND PERFORMANCE MATRIX

RESPONSIBILITY/DESCRIPTION NORESCO PROPOSED APPROACH

1. Financial
a. Interest rates: Neither NORESCO nor CITY has significant control over prevailing interest rates. Higher interest rates will increase project cost, financing/project term, or both. The timing of the TO signing may impact the available interest rate and project cost.

b. Construction costs: NORESCO is responsible for determining construction costs and defining a budget. If construction estimates are significantly greater than originally assumed, NORESCO may find that the project or measure is no longer viable and drop it before TO award. In any design/build contract, CITY loses some design control. Clarify design standards and the design approval process (including changes) and how costs will be reviewed.

c. M&V confidence: CITY shall determine the confidence it requires for the M&V program and energy savings determinations. The desired confidence will be reflected in the resources required for the M&V program, and NORESCO must consider the requirement prior to submission of the final proposal. Clarify how project savings are being verified (e.g., equipment performance, operational factors, energy use) and the impact on M&V costs.

31 d. Energy Related Cost Savings: CITY and NORESCO may agree that the project will include savings from recurring and/or one-time costs. This may include one-time savings from avoided expenditures for projects that were appropriated but will no longer be necessary. Recurring savings generally result from reduced Operations & Maintenance (O&M) expenses or reduced water consumption. These O&M and water savings must be based on actual spending reductions. Clarify sources of non-energy cost savings and how they will be verified.

e. Delays: Failure to implement a viable project in a timely manner costs CITY in the form of lost savings, and can add cost to the project (e.g., construction interest, re-mobilization). Clarify schedule and how delays will be handled.

f. Major changes in facility: CITY controls major changes in facility use, including closure. Clarify responsibilities in the event of a premature facility closure, loss of funding, or other major change.

2. Operational
a. Operating hours: CITY generally has control over operating hours.

Increases and decreases in operating hours can present as increases or decreases in “savings” depending on the M&V method (e.g., operating hours multiplied by improved efficiency of equipment vs. whole building/utility bill analysis). Clarify whether operating hours are to be measured or stipulated and what the impact will be if they change. If the operating hours are stipulated, the baseline should be carefully documented and agreed to by both parties.

b. Load: Equipment loads can change over time. CITY generally has control over hours of operation, conditioned floor area, intensity of use (e.g., changes in occupancy or level of automation). Changes in load can present as increases or decreases in “savings” depending on the M&V method.

Clarify whether equipment loads are to be measured or stipulated and what the impact will be if they change. If the equipment loads are stipulated, the baseline should be carefully documented and agreed to by both parties.

c. Weather or Force Majeure Events: A number of energy efficiency measures are affected by weather, or in extreme causes, a force majeure event like an earthquake or natural disaster. Neither NORESCO nor CITY has control over the weather or force majeure events. Should CITY agree to accept risk for weather fluctuations Clearly specify how weather corrections will be performed.

d. User participation: Many energy conservation measures require user participation to generate savings (e.g., control settings). The savings can vary and NORESCO may be unwilling to invest in these measures. Clarify what degree of user participation is needed and utilize monitoring and training to mitigate risk. If performance is stipulated, document and review assumptions carefully and consider M&V to confirm the capaCITY to save (e.g., confirm that the controls are functioning properly).

3. Performance
a. Equipment performance: NORESCO has control over the selection of equipment and is responsible for its proper installation, commissioning, and ultimate performance. NORESCO has the responsibility to demonstrate that new improvements meet expected performance levels including specified equipment capacity, standards of service, and efficiency. Clarify who is responsible for initial and long-term performance, how it will be verified, and what will be done if performance does not meet expectations.

b. Operations: Performance of the day-to-day operations activities (e.g. turning lights on, occupying the facilities, etc.) is negotiable and can impact performance. Clarify which party will perform equipment operations, the implications of equipment control, how changes in operating procedures will be handled, and how proper operations will be assured.

32 c. Preventive Maintenance: Performance of required maintenance activities including day-day, monthly, and annual activities is negotiable and can impact performance. Clarify how maintenance will be assured, especially if the party responsible for long-term performance is not responsible for maintenance (e.g., contractor provides maintenance checklist and reporting frequency). Clarify who is responsible for performing preventive maintenance to maintain operational performance throughout the contract term. Clarify what will be done if inadequate preventive maintenance impacts performance.

d. Equipment Diagnosis, Repair, and Replacement: Performance of diagnosis, repairs, and replacement of NORESCO-installed equipment is negotiable between the parties. Clarify who is responsible for performing replacement of failed components or equipment replacement throughout the term of the contract. Specifically address potential impacts on performance due to equipment failure. Specify expected equipment life and warranties for all installed equipment. Discuss replacement responsibility when equipment life is shorter than the term of the contract.

3. M&V Plan and Savings Calculation Methods Outline. NORESCO shall fill in the following tables – “Proposed Annual Savings Overview,” “Site Use and Savings Overview,” “M&V Plan Summary,” “Schedule of Verification and Reporting Activities,” “Proposed Annual Savings for Each ECM” – or provide equivalent information, with the final agreed upon values being included in the M&V Plan:

PROPOSED YEAR 1 ANNUAL SAVINGS OVERVIEW

[Include all applicable fuels/commodities for project, e.g., electric energy, electric demand, natural gas, fuel oil, coal, water, etc.] ECM
Total
energy
savings
(MBtu/yr)
Electric
energy
savings
(kWh/yr)
Electric
demand
savings
(kW/yr)*
Natural gas
savings
(MBtu/yr)**
Water
savings
(gallons/yr)
Other
energy
savings
(MBtu/yr)*
*
Total
energy and
water cost
savings,
Year 1
($/yr)
Other
energy-
related
O&M cost
savings,
Year 1
($/yr)
Total cost
savings,
Year 1
($/yr)

Total
savings

First Year Guaranteed Cost Savings: $
Notes
*Annual electric demand savings (kW/yr) is the sum of the monthly demand savings.

MBtu=106 Btu.
**If energy is reported in units other than MBtu, provide a conversion factor to MBtu for link to cost schedules (e.g., 0.003413 MBtu/kWh).

SITE USE AND SAVINGS OVERVIEW

Total energy
savings
(MBtu/yr)
Electric
energy
savings
(kWh/yr)
Electric
demand
savings
(kW/yr)*
Natural gas
savings
(MBtu/yr)**
Water savings
(gallons/yr)
Other energy
savings
(MBtu/yr)**
Total proposed project
savings

Usage for entire site**
% Total site usage saved

Project square footage
(KSF)
33 Total site square footage
(KSF)
% Total site area affected

Notes
MBtu=106 Btu
*Annual electric demand savings (kW/yr) is the sum of the monthly demand savings. **If energy is reported in units other than MBtu, provide a conversion factor to MBtu for link to cost schedules (e.g., 0.003413 MBtu/kWh).
***Define usage period.

KSF = 103 square feet.

M&V PLAN SUMMARY

ECM No. ECM Description M&V Option
Used* Summary of M&V Plan

*M&V options include A, B, C, and D of the International Performance Measurement and Verification Protocol (IPMVP).

SCHEDULE OF VERIFICATION REPORTING ACTIVITIES

Item Recommended time of submission
aCITY’s review and
acceptance period
Post-Installation Report 30 to 60 days after acceptance 30 days Annual Report 30 to 60 days after annual performance
period
30 days
aTimes are recommended based on industry practice; modify as needed.

PROPOSED YEAR 1 ANNUAL SAVINGS FOR EACH ECM

[Include all applicable fuels/commodities for project, such as: electric energy, electric demand, natural gas, fuel oil, coal, water, etc.]

Total
energy
use
(MBtu/yr
)
Electric
energy
use
(kWh/yr
)
Electric
energy
cost,
Year 1
($/yr)
Electric
demand*
(kW/yr)
Electric
demand
cost,
Year 1
($/yr)
Natural
gas use
(MBtu/yr)**
Natural
gas
cost,
Year 1
($/yr)
Water use
(gallons/yr)
Water
cost,
Year
1 ($/yr)
Other
energy
use
(MBtu/yr)**
Other
energy
cost,
Year 1
($/yr)
Other
energy-
related
O&M
costs,
Year 1
($/yr)
Total
costs,
Year
1 ($/yr)
Baseline
use

Post-
installatio
n use

Savings

(1) Notes
*Annual electric demand savings (kW/yr) is the sum of the monthly demand savings.

MBtu = 106 Btu.
**If energy is reported in units other than MBtu, provide a conversion factor to MBtu for link to cost schedules (e.g., 0.003413 MBtu/kWh).

D. ECM-Specific M&V Plan and Savings Calculation Methods:

1. NORESCO shall develop this section for each ECM:
 Summarize the scope of work, location, and how cost savings are generated. Describe source of all savings including energy, water, O&M, and other (if applicable). 34  Specify the M&V guideline and option used from the International Performance Measurement and Verification Protocol (IPMVP).
 Provide an overview of M&V Activities for ECM. Explain intent of M&V Plan, including what is being verified.
 Provide a n overview of savings calculations methods for ECM. Provide a general description of analysis methods used for savings calculations.

2. Proposed Energy Savings Calculations and Methodology  Provide detailed description of analysis methodology used. Descr ibe any data manipulation or analysis that was conducted prior to applying savings calculations.  Detail all assumptions and sources of data, including all stipulated values used in calculations.
 Include equations and technical details of all calculations made. (Use appendix and electronic format as necessary.) Include description of data format (headings, units, etc.).  Details of any savings or baseline adjustments that may be required.  Detail energy rates used to calculate cost savings. Provide post-acceptance performance period energy and water rate adjustment factors based on agreed upon escalation factors.  Detail proposed savings for this energy conservation measure for post -acceptance performance period. Include table outlining the Proposed Annual Savings for Each ECM.

3. Operations and Maintenance Cost Savings
 Provide justification for O&M cost savings, inclusive of calculations, analysis, and sources of data. Describe how savings are generated. Detail cost savings calculations.  Provide post-acceptance performance period other cost savings adjustment factors.

4. Details of other savings (if applicable)
 Provide justification for cost savings, inclusive of calculations, analysis, and sources of data. Describe how savings are generated. Detail cost savings calculations.  Provide post-acceptance performance period other cost savings adjustment factors.

5. Post-Installation M&V Activities - Describe the intent of post-installation verification activities, including what will be verified.
 Describe variables affecting post-installation energy or water use. Include variables such as weather, operating hours, set point changes, etc. Describe how each variable will be quantified, (i.e., measurements, monitoring, assumptions, manufacturer data, maintenance logs, engineering resources, etc.)
 Define key system performance factors characterizing the post-installation conditions such as lighting intensities, temperature set points, etc.
 Define requirements for CITY witnessing of measurements if diffe rent than whole project data requirements.
 Detail data analysis to be performed.
 Provide details of post-installation data to be collected, including:
o Parameters to be monitored:
o details of equipment to be monitored (location, type, model, quantity, etc .); o A sampling plan, including details of usage groups and sample sizes; o Duration, frequency, interval, and seasonal or other requirements of measurements; o Monitoring equipment to be used, including installation requirements for monitoring equipment;
o Calibration requirements/procedures;
o Expected accuracy of measurements/monitoring equipment; o Quality control procedures to be used;
o Form of data to be collected (.xls, .cvs, etc.); and, o Sample data collection forms (optional).

6. Post-Acceptance Performance Period Verification Activities 35  Describe variables affecting post -acceptance performance period energy or water use.

Include variables such as weather, operating hours, set point changes, etc. Describe how each variable will be quantified, i.e., mea surements, monitoring, assumptions, manufacturer data, maintenance logs, engineering resources, etc.  Define key system performance factors characterizing the post -acceptance performance period conditions. Include factors such as comfort conditions, lighti ng intensities, temperature set points, etc.
 Describe the intent of post-acceptance performance period verification activities – what will be verified.
 Provide detailed schedule of post -acceptance performance period verification activities and inspections.
 Define requirements for CITY witnessing of measurements if different than whole project data requirements.
 Detail data analysis to be performed.
 Provide details of post-acceptance performance period data to be collected, including:
o Parameters to be monitored;
o Details of equipment to be monitored (location, type, model, quantity, etc.); o A sampling plan, including details of usage groups and sample sizes; o Duration, frequency, interval, and seasonal or other requirements of measurements; o Monitoring equi pment to be used, including installation requirements for monitoring equipment;
o Calibration requirements/procedures;
o Expected accuracy of measurements/monitoring equipment; o Quality control procedures to be used;
o Form of data to be collected (.xls, .cvs, etc.); and, o Sample data collection forms (optional).
 Define O&M and repair reporting requirements. Detail verification activities and reporting responsibilities of CITY and contractor for operations and maintenance items.  Define reporting schedule.

E. Annual Fees for Maintenance, Measurement & Verification

First Year Annual Service
Fees
Maximum Percent of
Annual Savings
*completed prior to
signing Master Agreement
Final Annual Service
Fee

* Determined in the IGA
Measurement & Verification TBD
On-going Training TBD
Operations & Maintenance TBD

36 Exhibit A-3

MIMIMUM SAVINGS GUARANTEE

1. DEFINITIONS

When used in this Guarantee, the following capitalized words shall have the meaning ascribed to them below:

“Baseline Period” is the period of time that defines the Baseline Usage and is representative of the facilities operations, consumption, and usage that is used as the benchmark for determining cost avoidance.

“Baseline Usage” is the calculated energy usage of the Facilitie s prior to the implementation of the ECMs.

“Baseline Demand” is the calculated energy demand of a piece of equipment or a site prior to the implementation of the ECMs. Baseline physical conditions, such as equipment counts, nameplate data, and control strategies, will typically be determined through building occupancy, energy end-use survey and plug load surveys of the Facilities.

“Cumulative Excess Verified Savings” is the total amount of Excess Verified Savings based on the results of the Measurement & Verification Plan in the Guaranteed Savings Reconciliation Report carried over to subsequent Guaranty Periods.

“Energy and Operational Cost Avoidance Guarantee Practices” are those practices identified in The Schedule of Savings, intended to achieve avoided costs in energy and/or operating expenses.

“Energy Costs” may include the cost of electricity and fuels to operate HVAC equipment, cogeneration system, facility mechanical and lighting systems, and energy management systems, and the cost of water and sewer usage, as applicable.

“ECM” the Energy Conservation Measure (ECM) is the installation of equipment or systems, or modification of equipment or systems as described in Attachment B.

“Excess Verified Savings” is the amount of Verified Savings minus Guaranteed Savings in a Guaranteed Period.

“Facilities” shall mean those described in Attachment A.

“First Guarantee Period” is defined as the period beginning on the first (1 st) day of the month following the effective date of the Delivery and Acceptance Certificate (Attachment E-2) upon Final Acceptance of this Project by the CITY and ending on the day prior to the first (1st) twelve-month anniversary thereof.

“Guarantee Period” is defined as the First Guarantee Period and each of the successive twelve (12) month periods commencing on the anniversary of the commencement of the First Guarantee Period throughout the Term of this Guarantee.

“Guaranteed Cost Savings” is defined as the amount of avoided Energy and Operational Costs guaranteed to the CITY in each Guarantee Period. This does not include excess savings or the Cumulative Verified Savings.

“Guaranteed Savings Reconciliation Report” is defined as the process and report for determining the Verified Savings in each Guarantee Period and reconciling it to the Guaranteed Savings in the same Guarantee Period.
37 “IPMVP” shall mean the International Performance Measurement and Verification Protocol and its Measurement and Verification Guidelines for energy savings performance contract projects. The IPMVP guidelines classify measurement & verification approaches as Option A, Option B, Option C, and Option D.

“Measurement and Verification Plan” (M&V Plan) is defined as the plan providing details on how the Guarantee Savings will be verified.

“Operational Costs” shall include the cost of operating and maintaining the Facilities, such as, but not limited to, the cost of inside and outside labor to repair and maintain Covered Systems and Equipment, the cost of custodial supplies, the cost of replacement parts, the cost of deferred maintenance, the cost of lamp and ballast disposal, and the cost of new capital equipment as defined for each ECM in Section 4, Schedule of Values.

“Term” shall be one (1) calendar year from acceptance, provided that the Term shall automatically renew for successive one (1) year terms unless and until terminated by CITY.

“Verified Cost Savings” is the defined as the summation of avoided Energy and Operational Costs as determined by the Measurement & Verification Plan for the Facilit ies in each Guarantee Period as a result of the ECMs provided by NORESCO. This does not include excess savings from previous or subsequent guarantee periods.

2. TERM AND TERMINATION

2.1 Guarantee Term . The Term of this Guarantee shall commence on the fi rst (1 st) day of the month following the effective date of execution of the Final Delivery and Acceptance Certificate (Attachment E-2) upon Final Acceptance of this Project by the CITY and shall terminate at the end of [FULL FINANCING TERM] years unless terminated earlier by CITY as provided for herein.

2.2 Guarantee Termination. Should this Guarantee be terminated (including, as applicable, the Maintenance or Measurement & Verification Services) in whole or in part for any reason prior to the end of the Term, the Guaranteed Savings for the Guarantee Period in which such termination becomes effective shall be prorated as of the effective date of such termination, with a reasonable adjustment for seasonal fluctuations, if any, in Energy and Operational Cos ts, and the Guaranteed Savings for all subsequent Guarantee Periods shall be null and void.

3. COST SAVINGS GUARANTEE

3.1 Guaranteed Cost Savings: The following table lists the amount of Guaranteed Savings resulting from the ECMs to be installed by NORESCO.

Year
Energy & Water
Savings
$ Amount
Resiliency/Ren
ewable Energy
Operation &
Maintenance
Savings &
Smart Cities
$ Amount
Total Savings
$ amount

38 3.1.2 Savings Prior to Final Retrofit Acceptance . All energy and operational cost avoidance realized by CITY and as calculated through the Measurement & Verification Plan that result from activities undertaken by NORESCO prior to Final Acceptance accrue to the benefit of the CITY and may not be applied to the Verified Savings for the First Guaranty Period and any subsequent Guarantee Period after.

3.1.3 Cumulation of Savings . The Guaranteed Savings in each Guarantee Period are considered satisfied if the Verified Savings for such Guarantee Period equals or exceeds the Guaranteed Savings for such Guarantee Period.

3.1.4 Savings Shortfalls. In the event that the Verified Savings in any Guarantee Period is less than the Guaranteed Savings required for that Guarantee Period, NORESCO shall compensate CITY the amount of any such shortfall, limited by the value of the guarantee, within thirty ( 30) calendar days. At NORESCO’s sole discretion, NORESCO shall also be obligated to (1) remedy the ECM deficiencies causing the shortfall at no cost to the CITY or (2) continue to compensate the CITY for savings shortfalls.

3.2 Savings Reconciliation Docu mentation. NORESCO will provide CITY with a Guarantee Savings Reconciliation Report after each Guarantee Period within 60 days. CITY will assist NORESCO in generating the savings reconciliation report by providing NORESCO’s receipt thereof, together with access to relevant records relating to such Energy and Operating Costs. CITY will also assist NORESCO by permitting access to any energy billing information, maintenance records, drawings, or other data deemed necessary by NORESCO to generate the said report. Data and calculations utilized by NORESCO in the preparation of its Guarantee Savings Reconciliation Report will be made available to CITY, along with such explanations and clarifications as CITY may reasonably request.

3.2.1 Acceptance of Guarante e Savings Reconciliation Report . At the end of each Guarantee Period, CITY will have forty-five (45) days to review the Guarantee Savings Reconciliation Report and provide written notice to NORESCO of non-acceptance of the Guarantee Savings Reconciliation Report for that Guarantee Year. Failure to provide written notice within forty-five (45) days of the receipt of the Guarantee Savings Reconciliation Report shall constitute the deemed acceptance of the Report and its findings by the CITY.

3.2.2 Guarantee Savings Reconciliation. Verified Savings will be determined in accordance with the methodology(s), operating parameters, formulas, and constants as described below and/or defined in the Measurement & Verification Plan and/or additional methodologies defined b y NORESCO that may be negotiated with CITY at any time. Actual savings reduction in utility bills may vary from the Verified Savings for reasons outside of NORESCO’s control including but not limited to: changes in energy and other utility rates and tarif fs, changes in CITY operating schedules and usage patterns, changes in CITY loads due to addition or reductions in energy and water consuming devices, changes in weather, impacts due to the operations of ECMs, impacts due to the maintenance of ECMs maintained by CITY, and additions to and/or reduction in facility space usage. For the purposes of calculating any shortfalls or excesses of Verified Savings versus Guaranteed Savings, the Measurement & Verification Plan will be utilized.

3.2.3 Activities and Events Adversely Impacting Savings . CITY must promptly notify NORESCO of any activities known to CITY, which adversely impacts NORESCO’s ability to realize the Guaranteed Savings and NORESCO shall be entitled to reduce the Guaranteed Savings by the amount of any such adverse impact to the extent that such adverse impact is beyond NORESCO’s reasonable control.

3.2.4 Guarantee Adjustment. NORESCO’s Guaranteed Savings obligations under this Guarantee are contingent upon: (1) CITY following the operations and maintenance requirements for the ECMs in accordance with the Design-Build Construction Contract between the Parties ; (2) no alterations or additions being made to the ECMs by the CITY without prior notice and written agreement of the Parties; (3) CITY sending all current utility bills to NORESCO within two (2) weeks after receipt; and (4) 39 NORESCO’S ability to render services not being impaired by circumstances beyond its control. To the extent that the CITY defaults or fails to perform fully any of its obligations un der this Guarantee, NORESCO may, in its sole discretion, adjust the Guaranteed Savings obligation; provided, however, that no adjustment hereunder shall be effective unless NORESCO has first provided the CITY with written notice of CITY’s default(s) or failure(s) to perform and CITY has failed to cure its default(s) and failure(s) to perform within thirty (30) days after receipt of such notice.

3.2.5 Energy Rates. TO BE DETERMINED.

4. MEASUREMENT & VERIFICATION PLAN

4.1 Measurement and Verification. NORESCO and the CITY agree that the Verified Savings will be determined using the following Measurement and Verification Plan. Through this plan, the Guaranteed Savings generated by the ECMs installed in the Facilities in accordance with the Final IGA Report, as may be amended the Parties.

Measurement & Verification Plan: NORESCO and the CITY agree that the Verified Savings by ECM will be determined using the following Measurement & Verification plans further described in this section and in the Investment Grade Audit. Through this plan, the guaranteed savings generated by the ECMs installed in the Facilities will be validated. The M&V methodologies proposed for these ECMs are based on the latest version of the IPMVP. The objective of the plan is to quantify the actual electrical and fossil fuel and compare those to the specific Baseline Usage for each Facility, the difference of which is the Verified Savings.

During the term of the Guarantee, NORESCO will make adjustments to energy savings due to changes in building occupancy, weather data, and utility rate schedules, etc. The unit costs of energy will be applied to the energy savings calculated by this M&V plan. Current utility cost and rate structures will be used in the Final IGA Report as a basis for determining the utility unit costs to be used during the performance period to determine the cost savings.

4.2 M&V Descriptions: TO BE DETERMINED AND INCORPORATED FROM FINAL IGA.

City of Buena Park
City Council Regular Meeting Agenda Report
AMENDMENT NO. 2 TO A PROFESSIONAL SERVICES AGREEMENT WITH TSG ENTERPRISES, INC. DBA THE

SOLIS GROUP FOR THE ADMINISTRATION OF THE COMMUNITY WORKFORCE AGREEMENT (CWA) Meeting
Tuesday, August 13, 2024, 5:00 PM
Agenda Group
CONSENT CALENDAR Item: 4F
Presented By
Frances Capistrano, Management Analyst
Prepared By
Mina Mikhael, Director of Public Works/City Engineer
Approved By
Aaron France, City Manager

RECOMMENDED ACTION
1) Approve Amendment No. 2 to Professional Services Agreement No. 22-22 with TSG Enterprises, Inc. dba The Solis Group, in the amount of $200,000 to administer the City’s Community Workforce Agreement (CWA); 2) Authorize the City Manager and City Attorney to make any necessary, non-monetary changes to the amendment; and, 3) Authorize the City Manager and the City Clerk to execute the amendment.

PREVIOUS CITY COUNCIL ACTION
On March 8, 2022, the City Council approved a CWA between the City of Buena Park and the Los Angeles and Orange Counties Building and Construction Trades Council and the Signatory Craft Council and Unions (‘Unions’) with a ﬁve-year term effective July 1, 2022.

On June 28, 2022, the City Council approved an agreement with The Solis Group for CWA administration services from July 1, 2022 to August 31, 2023, in a not-to-exceed amount of $65,381.

On August 8, 2023, the City Council approved an amendment to the Professional Services Agreement 22-22 with the Solis Group for CWA Administration services from September 1, 2023 to August 31, 2024, in a not-to-exceed amount of $80,000.

DISCUSSION
The Public Works Department has retained The Solis Group as the CWA Administrator since July 1, 2022. Since it went into effect, City projects subject to the CWA that have entered and/or concluded the construction phase include:

FY 2022-23 Sewer Main Lining Project
FY 2022-23 Annual Pavement Rehabilitation Project

Sewer Upsizing on Brenner Avenue Project
Whitaker School Park Project
Orangethorpe Rehabilitation Project
Phase 2 Trail Improvements SCE Corridor Project
Various Parks ADA Improvements
Peak & Boisseranc Park Pool
During this time, The Solis Group has enforced the requirements of the CWA, facilitated communication between the City, its contractors, and the Unions, and ensured the satisfaction of all parties in regards to the CWA during the construction phase of each project. The Public Works Department desires to amend PSA 22-22 with The Solis Group for an additional three years.

The City Attorney has reviewed the proposed amendment.

BUDGET IMPACT
The amendment is in a not-to-exceed amount of $200,000. The cost of CWA Administration services was considered in preparing the FY 2024-25 Adopted Budget and incorporated into each applicable CIP account.

Similarly, it will be factored into the budgets for future ﬁscal years. Monthly invoices from the consultant will reﬂect changes on a per-project basis, and will be charged to the respective project account.

Attachments
Amendment 2 - Solis Group (CWA Administration).pdf
PSA_22-22.pdf
PAGE 1 OF 2
AMENDMENT # 2 TO
PROFESSIONAL SERVICES AGREEMENT NO. 22-22

This Amendment No. 2 to Professional Services Agreement No. 22 -22 (“Amendment No.2”) is dated as of September 1, 2024 (“Effective Date”), and is between the City of Buena Park, a California municipal corporation (“CITY”) and TSG Enterprises, Inc. dba The Solis Group, a California Corporation (“CONSULTANT”). CITY and CONSULTANT are at times referred to herein jointly as the “Parties” and individually as a “Party.”

WHEREAS, the Parties previously entered into that certain Professional Services Agreement No. 22-22, dated July 1, 2022 (the “Agreement”), pursuant to which CITY contracted with CONSULTANT to provide administration and support services in connection with the CITY’s Community Workforce Agreement , as such “Services” are more specifically defined in the Agreement;

WHEREAS, the Parties previously entered into an Amendment to the Agreement dated September 1, 2023 (“Amendment No. 1”) for purposes of extending the term of the Agreement to August 31, 2024, and updating the Compensation to be paid Consultant during the extended term;

WHEREAS, the Parties now desire to extend the term of the Agreement for an additional three (3) years and update the Compensation to be paid Consultant during said extended term, upon and subject to the terms and conditions set forth in this Amendment No. 2.

NOW THEREFORE, THE PARTIES AGREE AS FOLLOWS:

1. RECITALS. The foregoing recitals are true and correct and incorporated as a material part of this Amendment.

2. EFFECTIVE DATE. This Amendment No. 2 shall take effect upon the Effective Date first set forth above.

3. TERM. Section 4.0 of the Agreement (TERM) is hereby deleted in its entirety and replaced with the following:

4.0 TERM. The term of this Agreement shall commence on September 1, 2024, and shall remain in full force and effect until August 31, 2027, unless sooner terminated as provided in Section 10 of this Agreement..

4. COMPENSATION. Section 5.0 of the Agreement (COMPENSATION) is hereby deleted in its entirety and replaced with the following:

5.0 COMPENSATION. Subject to the maximum compensation amount hereafter provided, the CITY shall compensate the CONSULTANT for Services rendered during the term of Amendment No. 2 based on the hourly rates set forth in CONSULTANT’s PROPOSAL dated July 30, 2024 and attached as Exhibit " A" to Amendment No. 2. The maximum, “NOT -TO-EXCEED” compensation amount, including reimbursement for expenses, if any, that may be paid to CONSULTANT during the aggregate term of Amendment No. 2 is $200,000.00. No claims for additional compensation shall be allowed unless authorized in advance by the CITY in writing. Any additional work or expenses authorized by the CITY shall be compensated at the rates set forth in Exhibit A to PAGE 2 OF 2
Amendment No. 2 or, if not specified, at a rate agreed to by the Parties. The CITY shall make payment for additional services and expenses in accordance with Section 6.0 of the Agreement.

5. NEW EXHIBIT A. Exhibit A to this Amendment No. 2 is expressly incorporated and made a part of this Amendment No. 2 by this reference, and said Exhibit A shall supersede and replace Exhibit A to Amendment No. 1 and Exhibit A to the Agreement to the extent of any conflict in the terms of conditions of the same.

6. INCORPORATION. Except as expressly amended herein this Amendment No. 2, all other terms and provisions of the Agreement as modified by Amendment No. 1 shall govern this Amendment No. 2 and remain in full force and effect, being deemed incorporated fully herein by this reference.

CITY OF BUENA PARK
a California Municipal Corporation
TSG Enterprises Inc. dba The Solis
Group, a California Corporation
BY:

Aaron France, City Manager Mike Komsky, Chief Operating Officer ATTEST:

BY:

Adria M. Jimenez, City Clerk
APPROVED AS TO FORM:

BY:

Christopher Cardinale, City Attorney

Pasadena / Dallas / Las Vegas / Oakland / San Diego Headquarters
3452 E Foothill Blvd / Suite 200
Pasadena, CA 91107 USA
P 626 685 6989
F 626 685 6985
thesolisgroup.com
July 30, 2024
Frances Capi
strano, Management Analyst
City of Buena Park
Public Works Department
6650 Beach Boulevard
Buena Park, CA 90621
RE: Pr
oposal to Extend CWA Administration Services
Dear Frances Capistrano:

Please ac
cept this written request for The Solis Group to continue providing CWA Administration Services to the City.

We propos
e a budget of $200,000 for the period of September 1, 2024 through August 31, 2027 based on the City’s portfolio of capital projects and our ongoing level of effort. The attached rate sheet will govern our billable rates for the agreement term.

We apprec
iate the continued opportunity to serve the City. If you have any questions regarding this request, please feel free to contact me.

Sincer
ely,
Mike K
omsky
Chief Operating Officer
Attach
ment
Exhibit A to Amendment No. 2
Headquarters
3452 East Foothill Blvd / Suite 200
Pasadena, CA 91107 USA
P 626 685 6989
F 626 685 6985
thesolisgroup.com
Pasadena / Dallas / Honolulu / Las Vegas / Oakland / San Diego The Solís Group (TSG) Standard Rate Schedule
TSG’s rates cover all direct labor, overhead, fringe benefits and profit, and expenses such as travel (mileage, parking, etc.) and communication (postage, reports, telephone, etc.). Our standard billing rates are presented in the table below.

TSG Standard Rate Schedule
2024 2025 2026 2027 2028 2029
Principal NC NC NC NC NC NC
VP/Ops $220 $225 $225 $230 $230 $235
Senior Project
Manager $185 $190 $190 $195 $195 $200
Project Manager 2 $174 $179 $179 $184 $184 $189
Project Manager 1 $149 $154 $154 $159 $159 $164
Senior Analyst $122 $126 $126 $130 $130 $134
Analyst $111 $115 $115 $118 $118 $121
Site Interviewer $103 $106 $106 $110 $110 $114
Project Specific Pricing Methodology
We develop project-specific cost estimates by service (i.e., Labor Compliance Administration, PLA Administrator Services, etc.) based on the following factors:
• Construction Value
• Planned Construction Duration
• Number of Prime contracts to be monitored
• Estimated number of subcontracts to be monitored
Utilizing actual staff hours required to perform on similar past work, we develop estimates of the total average monthly staff hours necessary to provide monitoring for projects of similar size, duration, and construction team composition. We issue monthly invoices for a lump-sum amount calculated as the total fixed-fee for the project, divided by the sum of the planned construction duration plus two months for closeout activities. If actual construction activities continue beyond the planned end of construction, we will continue providing all services for the monthly lump-sum fee.

PAGE 1 OF 11
1810847
Revised: 21-Jul-22

PROFESSIONAL SERVICES AGREEMENT
NO. 22-22

DATE: July 28, 2022

PROJECT: Community Workforce Agreement Administration

PARTIES TO THE AGREEMENT:
“CITY” The CITY OF BUENA PARK, a California municipal corporation

Designated Official: Name: Mina Mikhael
Title: Interim Director of Public Works
Telephone: (714) 562-3679

Mailing Address: 6650 Beach Boulevard
P.O. Box 5009
Buena Park, CA 90622-5009

THE CONSULTANT TSG Enterprises, Inc dba The Solis Group Name of Business

Representative: Name: Jeremy Turner
Title: Senior Project Manager
Telephone: 626 685 6989
Address:

Mailing Address: 3452 E. Foothill Blvd. Suite 200
Pasadena, CA 91107

TERM OF SERVICE:

Commencement Date: July 1, 2022
Completion Date: August 31,2023
CONTRACT AMOUNT: $65,381.00

APPROVED BY: ( X ) City Council ( ) City Manager ( ) Director of Public Works

THIS AGREEMENT MUST BE FIRST EXECUTED BY THE CONSULTANT OR ITS

REPRESENTATIVE AND APPROVED AS TO FORM BY THE CITY ATTORNEY BEFORE THE AGREEMENT MAY BE EXECUTED ON BEHALF OF THE CITY OF BUENA PARK.

DocuSign Envelope ID: 56E04994-E669-4843-8F71-FBF1AD489C20 PAGE 2 OF 13
Revised: 21-Jul-22

This Professional Services Agreement (“Agreement”) is dated July 1 , 2022, and is between TSG Enterprises, Inc dba The Solis Group, (the "CONSULTANT") and the CITY OF BUENA PARK, a California municipal corporation (the "CITY"). The CONSULTANT and the CITY are sometimes referred to herein collectively as the “Parties” and singularly as “Party”.

R E C I T A L S
A. The CITY desires to enter into this Agreement with CONSULTANT as an independent contractor to perform the following services: Administer and coordinate its Community Workforce Agreement (CWA) (Exhibit C) and support the efforts of the City, awarded contractors, and subcontractors of all tiers to administer and facilitate the enforcement of the obligations of the CWA on covered project work (collectively, the “Project”).

B. The CONSULTANT is fully qualified to perform the tasks necessary for this Project by virtue of its experience and the training, education and expertise of its principals and employees.

The Parties therefore agree as follows:

1.0 EMPLOYMENT OF CONSULTANT. The CITY shall engage the CONSULTANT and the CONSULTANT shall perform the services required under this Agreement.

2.0 SCOPE OF SERVICES. The CONSULTANT shall perform during the term of this Agreement, those services set forth in the REQUEST FOR PROPOSAL attached hereto as Exhibit "A" (collectively, the “Services”), all to CITY’s reasonable satisfaction. The CONSULTANT shall commence performance of the Services upon receipt of a written notice from the Designated Official authorizing the CONSULTANT to proceed, and only to the extent of such authorization.

The CITY may, from time to time, request changes in the scope of services of the CONSULTANT to be performed under this Agreement. Such changes shall be in the form of a written amendment to this Agreement signed by both Parties and shall include any additional compensation agreed to by the Parties.

3.0 TIME OF PERFORMANCE. The CONSULTANT shall commence performance of the Services immediately upon receipt of a written notice from the Designated Official and shall perform the Services in a timely, diligent manner in accordance with the Schedule of Performance included in Exhibit A.

4.0 TERM. The term of this Agreement shall commence on July 1, 2022, and shall remain in full force and effect until August 31, 2023 , unless sooner terminated as provided in Section 10 of this Agreement.

5.0 COMPENSATION. Subject to the maximum compensation amount hereafter provided, the CITY shall compensate the CONSULTANT for the term of this Agreement based on the hourly rates set forth in the CONSULTANT’s PROPOSAL, attached hereto as Exhibit "B." The maximum , “NOT -TO-EXCEED” compensation amount, including reimbursement for expenses, if any, that the CONSULTANT is entitled to receive pursuant to this Agreement is $65,381.00. No claims for additional compensation shall be allowed unless authorized in advance by the CI TY in writing. Any additional work or expenses authorized by the CITY shall be compensated at the rates set forth in Exhibit B, or, if not specified, at a rate agreed to by the Parties. The CITY shall make payment for additional services and expenses in accordance with Section 6.0 of this Agreement.

DocuSign Envelope ID: 56E04994-E669-4843-8F71-FBF1AD489C20 PAGE 3 OF 13
Revised: 21-Jul-22

6.0 PAYMENT. Each month, the CONSULTANT shall submit invoices to the CITY for the services performed and any authorized reimbursable expenses incurred. The invoices shall describe in detail the services rendered during each day of the period, and shall show the days worked, personnel performing the services, number of hours worked, the hourly rates charged, milestone achievements, and, if applicable, reimbursable expenses incurred. The CONSULTANT shall remit the invoices to the address for the CITY specified on page one of this Agreement. The CITY shall review all invoices and notify the CONSULTANT in writing within ten (10) business days of any disputed amounts. The CITY shall pay all undisputed portions of th e invoice within thirty (30) calendar days after receipt , up to the maximum compensation amount set forth in Section 5.0 of this Agreement. The CITY shall not withhold federal or state payroll or other taxes, or make deductions, from payments made to the CONSULTANT.

7.0 STANDARD OF SKILL . The CONSULTANT warrants that it possesses the professional expertise necessary to perform the Services. The CITY relies upon the skill of the CONSULTANT, and the CONSULTANT's staff, if any, to do and perform the Services in a skillful, competent, and professional manner, and the CONSULTANT and CONSULTANT’s staff, shall perform the Services in such manner. The CONSULTANT shall, at all times, meet or exceed any and all applicable professional standards of care. The acceptance of the CONSULTANT's work by the CITY shall not operate as a release of the CONSULTANT from such standard of care and workmanship.

8.0 INDEPENDENT CONTRACTOR. The CONSULTANT is retained by the CITY only to the extent set forth in this Agreement, and the CONSUL TANT's relationship to the CITY is that of an independent contractor. The CONSULTANT shall be free to dispose of all portions of the CONSULTANT's time and activities that the CONSULTANT is not obligated to devote to the CITY in such a manner, and to such persons, firms or corporations, as the CONSULTANT sees fit except as expressly provided in this Agreement. Neither the CITY nor any of its agents shall have control over the conduct of the CONSULTANT or any of the CONSULTANT's employees, except as set forth in this Agreement. The CONSULTANT shall not have the status of an employee under this Agreement, or be entitled to participate in any insurance, medical care, vacation, sick leave or other benefits provided for the CITY's officers or employees. The CONSULTANT shall have no power to incur any debt, obligation or liability on behalf of the CITY or otherwise act on behalf of the CITY as an agent. The CONSULTANT shall not, at any time, or in any manner, represent that it or any of its agents or employees a re in any manner agents or employees of the CITY. The CONSULTANT shall pay all required taxes on amounts paid to the CONSULTANT under this Agreement, and indemnify and hold the CITY harmless from any and all taxes, assessments, penalties and interest asse rted against the CITY by reason of the independent contractor relationship created by this Agreement. The CONSULTANT shall fully comply with applicable workers’ compensation laws regarding the CONSULTANT and the CONSULTANT’s employees. The CONSULTANT sha ll indemnify and hold the CITY harmless from any failure of the CONSULTANT to comply with applicable workers’ compensation laws.

The CITY may offset against the amount of any compensation due to the CONSULTANT under this Agreement any amount due to the CI TY from the CONSULTANT as a result of the CONSULTANT’s failure to promptly pay to the CITY any reimbursement or indemnification arising under this Section 8.0.

9.0 INDEMNIFICATION. The CONSULTANT and the CITY agree that the CITY, its employees, agents and officials should, to the fullest extent permitted by law, be fully protected from any loss, injury, damage, claim, liability, lawsuit, cost, expense, attorneys fees, litigation costs, defense costs, court costs or any other cost arising out of or in any way r elated to the performance of this Agreement. Accordingly, the provisions of this indemnity provision are DocuSign Envelope ID: 56E04994-E669-4843-8F71-FBF1AD489C20 PAGE 4 OF 13
Revised: 21-Jul-22

intended by the Parties to be interpreted and construed to provide the fullest protection possible under the law to the CITY and the Indemnitees. The CONSULTANT acknowledges that the CITY would not have entered into this Agreement in the absence of the commitment of the CONSULTANT to indemnify and protect the CITY and the Indemnitees, as set forth in this Agreement.

9.1 Indemnity for COVID-19: As between the CONSULTANT and the CITY , the CONSULTANT expressly assumes any and all risk s associated with providing these contract services in context of the COVID -19 pandemic, and the CONSULTANT’S indemnification obligations hereunder expressly include any an d all claims loss, injury, damage, claim, liability, lawsuit, cost, expense, attorneys’ fees, litigation costs, defense costs, court costs or any other cost arising out of or in any way related to COVID -19 or any variants and the CONSULTANT’S services under this Agreement.

9.1 Indemnity for Professional Services . To the fullest extent permitted by law, the CONSULTANT shall, at its sole cost and expense, protect, defend, hold harmless and indemnify the CITY, its elected officials, officers, attorneys, agent s, employees, designated volunteers, successors, assigns and those CITY agents serving as independent contractors in the role of CITY officials (collectively “Indemnitees” in this Section 9.0 ), from and against any and all damages, costs, expenses, liabili ties, claims, demands, causes of action, proceedings, judgments, penalties, liens, and losses of any nature whatsoever, including fees of accountants, attorneys and other professionals, and all costs associated therewith (collectively “Claims”), whether actual, alleged or threatened, which arise out of, pertain to, or relate to, in whole or in part, the negligence, recklessness or willful misconduct of CONSULTANT, or its officers, agents, servants, employees, subcontractors, contractors or their officers, agents, servants or employees (or any entity or individual that CONSULTANT shall bear the legal liability thereof) in the performance of professional services under this Agreement. CONSULTANT shall defend the Indemnitees in any action or actions filed in c onnection with any Claims with counsel of the Indemnitees’ choice, and shall pay all costs and expenses, including all attorneys’ fees and experts’ costs actually incurred in connection with such defense. CONSULTANT shall reimburse the Indemnitees for any and all legal expenses and costs incurred by the Indemnitees in connection therewith.

9.2 Other Indemnities. Other than in the performance of professional services, and to the fullest extent permitted by law, CONSULTANT shall, at its sole cost and expense, to protect, defend, hold harmless and indemnify the Indemnitees from and against any and all damages, costs, expenses, liabilities, claims, demands, causes of action, proceedings, judgments, penalties, liens and losses of an y nature whatsoever, including fees of accountants, attorneys and other professionals, and all costs associated therewith, and the payment of all consequential damages (collectively “Damages”), in law or equity, whether actual, alleged or threatened, which arise out of, pertain to, or relate to the acts or omissions of CONSULTANT, its officers, agents, servants, employees, subcontractors, materialmen, suppliers, or contractors, or their officers, agents, servants or employees (or any entity or individual that CONSULTANT shall bear the legal liability thereof) in the performance of this Agreement, including the Indemnitees’ active or passive negligence, except for Damages arising from the sole negligence or willful misconduct of the Indemnitees, as determined by final arbitration or court decision or by the agreement of the Parties. CONSULTANT shall defend the Indemnitees in any action or actions filed in connection with any Damages with counsel of the Indemnitees’ choice, and shall pay all costs and expenses, including all attorneys’ fees and experts’ costs actually incurred in connection with such defense.

DocuSign Envelope ID: 56E04994-E669-4843-8F71-FBF1AD489C20 PAGE 5 OF 13
Revised: 21-Jul-22

CONSULTANT shall reimburse the Indemnitees for any and all legal expenses and costs incurred by the Indemnitees in connection therewith.

9.3 The obligations of the CONSULTANT under this or any other provision of this Agreement shall not be limited by the provisions of any workers’ compensation act or similar act.

The CONSULTANT expressly waives any statutory immunity under such statutes or laws as to the Indemnitees. The CONSULTANT’s indemnity obligation set forth in this Section 9.0 shall not be limited by the limits of any policies of insurance required or provided by the CONSULTANT pursuant to this Agreement.

9.4 The CONSULTANT’s covenant under this Section 9.0 shall survive the expiration or termination of this Agreement.

10.0 TERMINATION OF AGREEMENT. The CITY may terminate this Agreement at any time during the term of the Agreement by giving the CONSULTANT not less than thirty (30) calendar days’ prior written notice. The CONSULTANT may only terminate this Agreement for cause, and by giving the CITY prior notice in writing with a reasonable opportunity to cure any purported default. If the Agreement is terminated by the CITY, and provided CONSULTANT is not then in breach, the CONSULTANT shall be paid for services satisfactorily rendered to the last working day the Agreement is in effect, and the CONSULTANT shall have no other claim against the CITY by reason of such termination. This Agreement may be extended beyond the term only by the written agreement of both Parties prior to the expiration of the term of the Agreement.

11.0 SAFETY REQUIREMENTS. All work performed under this Agreement shall be performed in such a manner as to provide safety to the public and to meet or exceed the safety standards outlined by CAL OSHA. The CITY may issue restraint or cease and desist orders to the CONSULTANT when unsafe or harmful acts are observed or reported relative to the performance of the Services. The CONSULTANT shall maintain the work sites free of hazards to persons and property resulting from its operations. The CONSULTANT shall immediately report to the CITY any hazardous condition noted by the CONSULTANT.

12.0 MANDATORY INSURANCE. The CONSULTANT shall maintain the following insurance coverage throughout the term of this Agreement, and , upon the CITY’s request, the CONSULTANT shall provide the CITY with evidence of such coverage, which may include visual inspection of all policies, copies of declarations page, endorsements signed by an authorized representative of the underwriting company, or certificates of insurance. Insurance coverage shall be provided in the forms and coverage amounts set forth in this Section 12.0.

12.1 Minimum Scope of Insurance. The CONSULTANT shall maintain policies with coverage at least as broad as:
(a) Insurance Services Office Commercial General Liability insurance (occurrence Form Number CG 00 01).
(b) Automobile Liability insurance with coverage at least as broad as Insurance Services Office Form Number CA 0001 covering “Any Auto” (Symbol 1). (c) Workers Compensation insurance as required by the State of California , and Employer's Liability insurance.
(d) Errors and Omission liability insurance.

DocuSign Envelope ID: 56E04994-E669-4843-8F71-FBF1AD489C20 PAGE 6 OF 13
Revised: 21-Jul-22

12.2 Minimum Limits of Insurance . The CONSULTANT shall maintain insurance coverage limits not less than:
(a) General Liability: $2,000,000 per occurrence for bodily injury, personal injury, and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this Project/location or the general aggregate limit shall be twice the required occurrence limit, and shall contain specific language creating a duty to defend against any suit seeking damages. (b) Automobile Liability: $1,000,000 per accident for bodily injury and property damage.
(c) Employer's Liability: $1,000,000 per accident for bodily injury or disease. (d) Errors and Omission liability: $2,000,000 per claim, with an extended reporting period of not less than three years.

12.3 Deductibles and Self -insured Retentions: Any deductibles or self -insured retentions must be declared to and approved by the CITY prior to the CONSULTANT commencing any work under this Agreement. At the CITY’s option, either: (i) the insurer shall reduce or eliminate the deductibles or self–insured retentions with respect to the CITY, its elected officials, officers, attorneys, agents, employees and designated volunteers; or (ii) the CONSULTANT shall provide a bond or other financial guarantee, satisfactory to the CITY, guaranteeing payment of losses and related investigations, claim administration and defense expenses.

12.4 Required Endorsements. Each insurance policy required by this Section 12 .0 shall be endorsed as follows:
(a) Except with respect to any employer’s liability or professional liability/errors and omission liability policies required by this Section 12.0, the CITY, its elected officials, officers, attorneys, agents, employees, independent contractors serving i n the role of city officials and designated volunteers shall be named as additional insureds (collectively, “Additional Insureds” sometimes hereafter in this Section 12.0).
(b) Additional Insured Endorsements shall not:
(1) Be limited to “Ongoing Operations”;
(2) Exclude “Contractual Operations”;
(3) Restrict coverage to the “Sole” liability of the CONSULTANT; or (4) Contain any other exclusion contrary to this Agreement. (c) For any claims related to the Project, this Agreement or the services performed under this Agreement , the CONSULTANT's insurance coverage shall be primary to any other similar insurance carried by the CITY. Any insurance or self -insurance maintained by the CITY or any of the Additional Insureds, shall be in excess of the CONSULTANT's insurance and shall not be called upon to contribute with it.

DocuSign Envelope ID: 56E04994-E669-4843-8F71-FBF1AD489C20 PAGE 7 OF 13
Revised: 21-Jul-22

(d) All insurance coverage shall contain a provision that prohibits cancellation, modification or lapse without thirty (30) calendar days' prior written notice from insurer to the CITY.

The notice shall be provided via certified mail, return receipt requested. The CONSULTANT shall require its insurer to modify the applicable policy and all certificates of insurance to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation, and to delete the word "endeavor" with regard to any notice provisions. (e) Each policy shall be endorsed to state that the insurer waives the right of subrogation against the CITY and its officers, employees, agents, independent contractors serving in the role of city officials and designated volunteers.

12.5 Other Insurance Provisions. The CONSULTANT and the CITY further agree as follows:
(a) All insurance coverage and limits provided pursuant to this Agreement shall apply to the full extent of the policies involved, available or applicable. Nothing contained in this Agreement or any other agreement relating to the CITY or its operations limits the application of the insurance coverage.
(b) Requirements of specific coverage features or limit s contain ed in this Section 12.0 are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only and is not intended by any Party to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. (c) All insurance coverage shall cover the CONSULTANT’s operations pursuant to the terms of this Agreement.
(d) Any actual or alleged failure on the part of the CITY or any other additional insured under these requirements to obtain proof of insurance required under this Agreement in no way waives any right or remedy of the CITY or any additional insured, in this or any other regard.
(e) In the e vent any policy of insurance required under this Agreement does not comply with these requirements or is canceled and not replaced, the CITY has the right, but not the duty, to obtain the insurance it deems necessary and the CONSULTANT shall promptly reimburse to the CITY any premium paid by the CITY.
(f) The CONSULTANT shall provide immediate notice to the CITY of any claim or loss against the CONSULTANT that includes the CITY or any of the Additional Insureds as a defendant. The CITY assumes no obligation or liability from the notice. The CITY shall have the right, but not the duty, to monitor the handling of the claim or claims if they are likely to involve the CITY.

12.6 Acceptability of Insurers. All insurance coverage required by this Section 12.0 shall be written by insurers admitted to conduct business in the State of California by the Department of Insurance and rated “A:VIII” in the most recent A.M. Best's Insurance Rating Guide.

12.7 Verification of Coverage . The CONSULTANT shall furnish the CITY with evidence of the insurance required by this Section 12.0, satisfactory to the CITY. The evidence shall consist of original certificates of insurance and amendatory endorsements, including an DocuSign Envelope ID: 56E04994-E669-4843-8F71-FBF1AD489C20 PAGE 8 OF 13
Revised: 21-Jul-22

additional insured endorsement. The endorsements shall be on forms provided by the CITY or on such other forms approved by the CITY in writing, and amended to conform to the CITY's requirements. The CONSULTANT shall file all certificates of insurance and fully executed endorsements with the CITY before commencing performance of the Services. Thereafter, the CONSULTANT shall provide proof that the policies of insurance required under this Agreement and expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. The CONSULTANT shall furnish such proof to the CITY prior to the expiration of the affected coverages. The CITY may require complete, certified copies of all required insurance policies, including endorsements effectin g the coverage required by these specifications at any time. The CONSULTANT shall provide complete copies of policies to the CITY upon request.

12.8 Subcontractors. The CONSULTANT shall include all subcontractors , or any other party involved in the performance of the Services, as insureds under its policies or shall require subcontractors or any other party involved in the Project by the CONSULTANT to carry the same insurance as required in this Section 12.0. The CONSULTANT shall obtain certificates evidencing the coverage and make reasonable efforts to ensure that the coverage is provided as required in this Section 12.0 . The CONSULTANT shall require that no contract used by any subcontractor, or contract the CONSULTANT enters into on behalf of the CITY, shall reserve the right to charge back to the CITY the cost of insurance required by this Agreement. The CONSULTANT shall, upon request, submit to the CITY for review , all agreements with subcontractors or others with whom the CONSULTANT contracts with on behalf of the CITY, and all certificates of insurance obtained in compliance with this Section 12.8. The CITY’s failure to request copies of the documents shall not impose any liability on the CITY, or its employees, or be deemed a waiver of any of the CITY’s rights.

13.0 WORK PRODUCT.

13.1 Deliverables. The CONSULTANT shall, in such time and in such form as the CITY may require, furnish reports concerning the status of services required under this Agreement. The CONSULTANT shall, upon request by the CITY and upon completion or termination of this Agreement, deliver to the CITY all material furnished to the CONSULTANT by the CITY.

13.2 Ownership.

(a) All draft and final reports, documents and other written material, and any and all images, ideas, concepts, designs including website designs, source code, object code, electronic data and files or other media whatsoever, created or developed by the CONSULTANT in the performance of this Agreement (collectively, “Work Pro duct”) shall be considered to be “works made for hire” for the benefit of the CITY. All Work Product and any and all intellectual property rights arising from their creation, including all copyrights and other proprietary rights, shall be and remain the property of CITY without restriction or limitation upon their use, duplication or dissemination by the CITY upon final payment being made. The CONSULTANT shall not obtain or attempt to obtain copyright protection as to any of the Work Product.

(b) The CONSULTANT hereby assigns to the CITY all rights of ownership to the Work Product, including any and all related intellectual property and proprietary rights that are not otherwise vested in the CITY pursuant to subsection (a) above.

(c) The CONSULTANT warrants and represents that it has secured all necessary DocuSign Envelope ID: 56E04994-E669-4843-8F71-FBF1AD489C20 PAGE 9 OF 13
Revised: 21-Jul-22

licenses, consents or approvals necessary to the production of the Work Product, and that upon final payment, the CITY shall have full legal title to the Work Product, and full legal authority and the right to use and reproduce the Work Product for any purpose. The CONSULTANT shall defend, indemnify and hold the CITY, and its elected officials, officers, employees, servants, attorneys, designated volunteers and agents serving as independent contractors in the role of city officials, harmless from any loss, claim or liability in any way related to a claim that the CITY’s use of any of the Work Product is violating federal, state or local laws, or any contra ctual provisions, or any rights or laws relating to trade names, licenses, franchises, copyrights, patents or other means of protecting intellectual property rights or interests in products, ideas or inventions.

Consultant shall bear all costs arising fro m the use of patented, copyrighted, trade secret or trademarked documents, materials, equipment, devices or processes in connection with its provision of the Work Product produced under this Agreement. In the event any the use of any of the Work Product o r other deliverables hereunder by the CITY is held to constitute an infringement and the use of any of the same is enjoined, CONSULTANT, at its expense, shall:
(a) secure for the CITY the right to continue using the Work Product and other deliverables by suspension of any injunction, or by procuring a license or licenses for the CITY; or (b) modify the Work Product and other deliverables so that they become non -infringing while remaining in compliance with the requirements of this Agreement. The CONSULTANT’s covenants under this Section 13.2 shall survive the expiration or termination of this Agreement.

13.3 Confidentiality. Except as otherwise required by law, t he CONSULTANT shall not disclose, publish or authorize others to disclose or publish, design data , drawings, specifications, reports or other information pertaining to the Project assigned to the CONSULTANT by the CITY or other information to which the CONSULTANT has had access during the term of this Agreement without the Designated Official’s prior written approval.

CONSULTANT’s covenant under this Section 13.3 shall survive the expiration or termination of this Agreement.

13.4 Records. The CONSULTANT shall maintain complete and accurate records with respect to sales, costs, expenses, receipts and other such information relating to the Services, as required by the CITY or the Designated Official. The CONSULTANT shall maintain adequate records on services provided in sufficient detail to permit an evaluation of the Services. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. At all times during regular business hours, the CONSULTANT shall provide access to such books and records to the Designated Official, or his or her designees, and shall give the Designated Official , or his or her designees , the right to examine and audit such books and records and to make transcripts as necessary, and shall allow inspection of all work, data, documents, proceedings and activities related to this Agreement.

14.0 ASSIGNMENT AND SUBCONTRACTING. This Agreement is personal to the CONSULTANT, and the CITY has entered this Agreement in reliance on the CONSULTANT’s skill, competence and experience . The CONSULTANT shall not ass ign any of its rights or delegate any of its duties under this Agreement, either in whole or in part, without the CITY’s prior written consent, by and through the Designated Official. The CITY’s consent to an assignment of rights under this Agreement shal l not release the CONSULTANT from any of its obligations or alter any of its obligations to be performed under this Agreement. Any attempt at assignment or delegation by the CONSULTANT in violation of this Section 14.0 shall be void and of no effect and s hall entitle the CITY to immediately terminate this Agreement for cause . The CONSULTANT's services under to this Agreement shall be provided by the Representative or directly under the supervision of the Representative and the CONSULTANT shall not assign DocuSign Envelope ID: 56E04994-E669-4843-8F71-FBF1AD489C20 PAGE 10 OF 13
Revised: 21-Jul-22

another to supervise the CONSULTANT's performance of this Agreement without the CITY’s prior written approval, by and through the Designated Official. As used in this Section 14.0, “assignment” and “delegation” means any sale, gift, pledge, hypothecation, encumbrance or other transfer of all or any portion of the rights, obligations or liabilities in or arising from this Agreement to any person or entity, whether by operation of law or otherwise, and regardless of the legal form of the transaction in which the attempted transfer occurs. The CONSULTANT shall not subcontract any performance required under this Agreement without the CITY’s prior written consent.

15.0 MISCELLANEOUS TERMS.

15.1 Nuisance. The CONSULTANT shall not maintain, commit or permit the maintenance or commission of any nuisance in connection with the performance of services under this Agreement.

15.2 Permits and Licenses. The CONSULTANT, at its sole expense, shall obtain and maintain during the term of this Agreement, all appropriate permits, licenses, and certificates that may be required in connection with the performance of services under this Agreement.

15.3 Conflicts of Interest. The CONSULTANT shall comply with all applicable federal, state and local conflict of Interest laws, including the Political Reform Act (Cal . Gov. Code, § 81000 et seq. ) and California Government Code Section 1090. During the term of this Agreement, the CONSULTANT may perform similar services for other clients, but the CONSULTANT and its officers, employees, associates and subconsultants shall not, without the City Manager’s prior written approval , perform work for another person or entity for whom the CONSULTANT is not currently performing work that would require the CONSULTANT, or one of its officers, employees, associates or subconsultants, to abstain from a decision under this Agreement pursuant to a conflict of interest statute.

15.4 Waiver. No delay or omission to exercise any right, power or remedy accruing to the CITY under this Agreement shall impair any right, power or remedy of the CITY, nor shall it be construed as a waiver of, or consent to, any breach or default. No waiver by the CITY of any breach, any failure of a condition, or any right or remedy under this A greement shall be : (1) effective unless it is in writing and signed by the Party making the waiver ; (2) deemed to be a waiver of, or consent to, any other breach, failure of a condition, or right or remedy; or (3) deemed to constitute a continuing waiver unless the writing expressly so states.

15.5 Accomplishment of Project. The CONSULTANT shall commence, carry on and complete its assignments with all practicable dispatch, in a sound, economical, and efficient manner in accordance with all applicable laws and generally accepted industry and applicable professional standards.

15.6 Captions for Convenience Only . The titles of the sections, subsections and paragraphs set forth in this Agreement are inserted for convenience and reference only and shall be disregarded in construing or interpreting any of the provisions of this Agreement and the rights or obligations of the Parties to this Agreement.

15.7 Word Usage. Unless the context clearly requires otherwise, (a) the word “shall” is mandatory and “may” is permissive; (b) “or” is not exclusive; and (c) “includes” or “including” are not limiting.

DocuSign Envelope ID: 56E04994-E669-4843-8F71-FBF1AD489C20 PAGE 11 OF 13
Revised: 21-Jul-22

15.8 Notices. Any notice , consent, request, demand, bill, invoice, report or other communication required or permitted under this Agreement shall be given in writing to the person at the addresses specified on first page of this Agreement and deemed effective: (a) on personal delivery, (b) on confirmed delivery by courier service during the CONSULTANT’s and the CITY’s regular business hours, or (c) three business days after deposit in the United States mail, by first class mail, postage prepaid. Either Party may change the specified person or address at which it is to receive notices by advising the other Party in writing.

15.9 No Third Party Beneficiaries. This Agreement is made solely for the benefit of the Parties to this Agreement and their respective successors and assigns, and no other person or entity may have or acquire a right by virtue of this Agreement.

15.10 When Rights and Remedies Not Waived . In no event shall the making by the CITY of any payment to the CONSULTANT constitute or be construed as a w aiver by the CITY of any breach of covenant, or any default that may then exist, on the part of the CONSULTANT, and the making of any such payment by the CITY while any such breach or default shall exist shall in no way impair or prejudice any right or remedy available to the CITY with regard to such breach or default.

15.11 Cost of Litigation. If any legal action is necessary to enforce any provision of this Agreement or for damages by reason of an alleged breach of any provisions of this Agreement (whether in contract, tort or both), the prevailing Party shall be entitled to receive from the losing Party all attorneys’ fees, costs and expenses in such amount as the courts may determine to be reasonable. In awarding the cost of litigation, the court shall not be bound by any court fee schedule, but shall, if it is in the interest of justice to do so, award the full amount of costs, expenses and attorneys' fees paid or incurred in good faith.

15.12 Compliance with Laws . In the performance of the work required by this Agreement, the CONSULTANT shall abide by and conform with and to any and all applicable laws of the United States and the State of California, and with the CITY's Municipal Code, ordinances, regulations and policies. Further, this Agreement may call for services that, in whole or in part, constitute “public works” as defined in the California Labor Code. Therefore, as to those services that are “public works,” the CONSULTANT shall comply in all respects with the all applicable provisions of the California Labor Code, including those set forth in Exhibit C, attached hereto.

15.13 Severability. If any part, term or provision of this Agreement shall be held illegal, unenforceable or in conflict with any law of a federal, state, or local government having jurisdiction over this Agreement, the validity of the remaining portions or provisions shall not be affected by such holding.

15.14 Governing Law. The terms of this Agreement, and any dispute arising from the relationship between the Parties to this Agreement, shall be governed by and construed in accordance with the laws of the State of California , without regard for its conflicts of laws principles, except that any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be applied in interpreting this Agreement . Any dispute that arises under or relates to this Agreement (whether contract, tort or both) shall be resolved in superior or federal court with geographic jurisdiction over the City of Buena Park.

15.15 Integrated Agreement and Modificaiton of Agreement. This Agreement, and all exhibits referred to in this Agreement, constitutes the final, complete and exclusive statement DocuSign Envelope ID: 56E04994-E669-4843-8F71-FBF1AD489C20 PAGE 12 OF 13
Revised: 21-Jul-22

of the terms of the agreement between the CITY and the CONSULTANT with respect to the subject matter of this Agreement. This Agreement supersedes all prior or contemporaneous oral or written negotiations, representations or agreements of the Parties . No verbal agreement or implied covenant shall be held to v ary the provisions of this Agreement. No Party has been induced to enter into this Agreement by, nor is any Party relying on, any representation or warranty except those expressly set forth in this Agreement. This Agreement may be modified only by a writing signed by both Parties.

15.16 Authority to Bind Parties. Each of the undersigned hereby represents that he or she has the authority to execute this Agreement on behalf of his or her contracting Party.

15.17 Exhibits; Precedence. All documents referenced as exhibits in this Agreement are hereby incorporated into this Agreement by this reference. In the event of any inconsistency between the express provisions of this Agreement and any provision of an exhibit, the provisions of this Agreement, then the CITY’s request for proposals, if any, shall prevail.

15.18 Time of the Essence. Time is of the essence in respect to all provisions of this Agreement that specify a time for performance.

DocuSign Envelope ID: 56E04994-E669-4843-8F71-FBF1AD489C20 PAGE 13 OF 13
Revised: 21-Jul-22

In recognition of the obligations stated in this Agreement, the Parties have executed this Agreement on the date indicated above.

CITY OF BUENA PARK

a California municipal corporation
CONSULTANT*

TSG Enterprises, Inc. dba The Solis Group
Name of Business

Signature

Name: Aaron France Name:

Title:

City Manager

Title:

Signature

Name:

Title:

* Please note, two signatures required for corporations pursuant to California Corporations Code Section 313, unless corporate documents provided to the City authorize only one person to sign this Agreement on behalf of the corporation.

ATTEST:
(SEAL)

_____________________________________
Adria M. Jimenez, MMC, City Clerk

APPROVED AS TO FORM:

_____________________________________
Christopher G. Cardinale, City Attorney
DocuSign Envelope ID: 56E04994-E669-4843-8F71-FBF1AD489C20 Elvira Elizabeth Diez Solis
CEO
CEO
Elvira Elizabeth Diez Solis

City of Buena Park
City Council Regular Meeting Agenda Report

DONATION OF A POLICE VEHICLE TO THE RIO HONDO POLICE ACADEMY IN LOS ANGELES COUNTY Authorize the donation of one police vehicle to the Rio Hondo Police Academy in unincorporated Whittier, Los Angeles County, California, pursuant to Buena Park Municipal Code 3.28.150(D).

Meeting
Tuesday, August 13, 2024, 5:00 PM
Agenda Group
CONSENT CALENDAR Item: 4G
Presented By
Frank Nunes, Chief of Police
Prepared By
Frank Nunes, Police Chief
Approved By
Aaron France, City Manager

RECOMMENDED ACTION
1) Authorize the donation of one police vehicle to the Rio Hondo Police Academy in unincorporated Whittier, Los Angeles County, California, pursuant to Buena Park Municipal Code 3.28.150(D), under the Rio Hondo College Foundation.

PREVIOUS CITY COUNCIL ACTION
None.

DISCUSSION
Buena Park Fleet Services recently acquired new Ford Explorers to replace police vehicles that have reached their lifespan (4 years or 100,000 miles). Vehicle 23-13 (50-1864), a 2013 Dodge Charger, VIN: 2C3CDXAT1EH198906, has over 140,000 miles, has surpassed its lifespan, and needs replacement.

Buena Park Police Department staff recommends donating the decommissioned vehicle (Vehicle 13) to the Rio Hondo Police Academy, so they can utilize the vehicle during their scenario-based police recruit training. The vehicle has exceeded its life expectancy and will no longer be in the ﬂeet. The Police Department consulted with the Public Works Department, and they, too, concur with donating the vehicle. All city decals will be removed from the vehicle before being donated to the Rio Hondo College Foundation.

The Rio Hondo College Foundation (Tax ID # 95-4367487) will add its own decals and use the vehicle at the Police Academy for scenario-based training.

Buena Park Municipal Code 3.28.150(D) allows surplus property to be donated to any agency or entity exempt from federal income tax. Staff recommends donating this vehicle to the Rio Hondo College Foundation.

BUDGET IMPACT
There is no direct budget impact. However, this donation will impact the opportunity cost of receiving fair market auction value in the range of $5,000.

Attachments
Rio Hondo Police Academy Request Letter with Tax Exemption Identiﬁcation Number.pdf

April 29, 2024

Chief Frank Nunes
Buena Park Police Department
6640 Beach Blvd.

Buena Park, California 90621

Dear Chief Nunes,

Currently, we are having difficulty maintaining our current fleet of Rio Hondo Police Academy patrol vehicles due to age and continued use over the last several years.

As a result, we’re currently looking for any police patrol vehicles that was in the process of being retired out and replaced by police departments in Los Angeles or Orange County.

It was recently brought to my attention that Buena Park Police Department might be in the process of replacing their patrol vehicles. If in fact you are going to replace any vehicles in your patrol fleet, please consider donating a vehicle to the Rio Hondo Police Academy for use in our academy training program.

The donation process at Rio Hondo College is quite simple. All donations simply go through our Rio Hondo College Foundation (Tax ID # 95-4367487) and are distributed appropriately and legally to a college program or division. Please let me know if you might have a vehicle or two you might consider donating to the Rio Hondo Police Academy. Thank you for your consideration and thank you for your continued support of the Rio Hondo Police Academy.

Sincerely,

Walter Allen III, Director
Rio Hondo Police Academy
Rio Hondo College

City of Buena Park
City Council Regular Meeting Agenda Report
APPROVAL OF CITY RESPONSE TO 2023-2024 ORANGE COUNTY GRAND JURY REPORT ENTITLED "TALKING TRASH: RECYCLABLES AND ORGANIC WASTE"
Meeting
Tuesday, August 13, 2024, 5:00 PM
Agenda Group
CONSENT CALENDAR Item: 4H
Presented By
Jessica Fewer, Senior Management Analyst
Prepared By
Eddie Fenton, Assistant City Manager/Director of Human
Resources
Approved By
Aaron France, City Manager

RECOMMENDED ACTION
1) Approve the City's response to the 2023-2024 Orange County Grand Jury report entitled, "Talking Trash:

Recyclables and Organic Waste."

PREVIOUS CITY COUNCIL ACTION
None.

DISCUSSION
Each year, a new Orange County Grand Jury is impaneled to investigate and report on both criminal and civil matters in the County of Orange. The civil or "watch dog" responsibilities of the body include the examination of all aspects of County government, including special districts, to ensure that the County is being governed honestly and eﬃciently. During the 2023-2024 session, several topics were investigated, including a report that require responses for the City within 90 days of the report release date (Attachment1):

Talking Trash: Recyclables and Organic Waste (report released June 11, 2024) Staff has drafted responses to both reports in conjunction with the City Attorney (Attachment 2). With City Council approval, staff will submit the responses to Presiding Judge of the Superior Court, Maria D. Hernandez, by the required deadline. This is the third response required by the 2023-2024 Orange County Grand Jury. The ﬁrst set of responses was approved by the City Council on July 23, 2024 and forwarded to the Grand Jury.

BUDGET IMPACT

There is no direct budget impact with the approval of these items.

Attachments
Talking_Trash_Recyclables_and_Organic_Waste.pdf
2024.08.13 Grand Jury Responses - Talking Trash Recyclables Organic Waste FINAL.pdf

Talking Trash: Recyclables and Organic Waste

2023-2024 Orange County Grand Jury Page ii

TABLE OF CONTENTS
SUMMARY ...................................................................................................................... 3 BACKGROUND .............................................................................................................. 3 REASON FOR THE STUDY ........................................................................................... 4 METHOD OF STUDY ...................................................................................................... 5 INVESTIGATION AND ANALYSIS ................................................................................. 6 Overview of SB 1383 .................................................................................................. 6 How Are Jurisdictions Impacted by SB 1383? ........................................................ 7 Orange County Jurisdictions’ SB 1383 Implementation Status ............................. 8 How do jurisdictions assess their own progress? ..................................................... 8 Main Implementation Issues ..................................................................................... 8 COMMENDATIONS ...................................................................................................... 18 FINDINGS ..................................................................................................................... 18 RECOMMENDATIONS ................................................................................................. 19 RESPONSES ................................................................................................................ 21 Responses Required ............................................................................................... 22 Findings – 90 Day Response Required .................................................................. 22 Recommendations – 90 Day Response Required .................................................. 24 REFERENCES .............................................................................................................. 25 GLOSSARY .................................................................................................................. 26 APPENDICES ............................................................................................................... 28 APPENDIX A – SURVEY RESULTS ......................................................................... 28 APPENDIX B – CIRCULAR ECONOMY STARTS IN YOUR KITCHEN ................... 33

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SUMMARY
In 2016, the State of California enacted Senate Bill (SB) 1383, requiring counties, cities, and other organizations responsible for waste collection to coordinate with their residents to divert organic waste, including food scraps, from the landfill waste disposal stream. Another provision makes jurisdictions responsible for procuring a quantity of the recovered organic waste products resulting from the diversion. The 2023-2024 Orange County Grand Jury (OCGJ) investigated how Orange County jurisdictions are complying with the requirements and goals of SB 1383 that impact single-family residential units.

The investigation revealed that the approaches to meeting SB 1383’s requirements vary greatly from jurisdiction to jurisdiction. The majority of Orange County jurisdictions have not yet distributed residential waste containers that meet the SB 1383 standardization requirements, leaving outdated labeling/embossing in place. Education and outreach have not yet taken place at all in some jurisdictions. Even when information has been disseminated in other jurisdictions, the methods disproportionately favor intermittent paper mailings. Also, the State’s unrealistic targets for the procurement of recycled organic waste products do not account for a jurisdiction’s population density or geographic size, which frequently makes them extremely difficult to meet.

The local enforcement stage of SB 1383 started on January 1, 2024. However, the majority of Orange County jurisdictions are unlikely to meet the SB 1383 targeted seventy-five percent reduction in the amount of organic waste sent to landfills by January 2025.

The OCGJ concludes there is a clear need to improve education and outreach efforts, develop enforcement mechanisms and processes, and to coordinate and collaborate among all jurisdictions to collectively address the challenges and to achieve the goals and targets of SB 1383.

BACKGROUND
Organic waste comprises more than a third of the waste stream in California and includes green waste, wood, food waste, and fibers such as paper and cardboard.

When left to decompose in landfills, organic waste releases large amounts of methane gas which is harmful to the environment (CalRecycle, 2024). In September 2016, SB 1383 set reduction targets in a statewide effort to reduce emissions of Short-Lived Climate Pollutants (SLCP) including methane. Simply put, this required all statewide jurisdictions to implement mandatory organic waste collection and recycling to divert organic waste from landfills. Another key benefit of the diversion of organic and other recyclable material from landfills is the preservation of overall landfill capacity.

In 2014, the State conducted random sampling of twenty-six landfills, Material Recovery Facilities (MRF), and Transfer Stations located in twenty-one of California’s fifty-eight counties (none in Orange County). The results were used to establish the baseline for Talking Trash: Recyclables and Organic Waste

2023-2024 Orange County Grand Jury Page 4

the required reduction in organic waste destined for landfills. SB 1383 then set goals to reduce organic waste sent to landfills below the 2014 baseline by fifty percent no later than January 1, 2020, and seventy-five percent by January 1, 2025. However, despite the law’s requirements, the amount of organic waste sent to landfills statewide actually increased by twenty-three percent above the 2014 baseline (Little Hoover Commission, 2023).

SB 1383 requires all jurisdictions to memorialize the bill’s requirements in their municipal codes and ordinances no later than January 1, 2022. One of the results of these changes is that each jurisdiction had to amend or renegotiate their waste haulers’ franchise agreements to incorporate the new requirements.

In accordance with SB 1383, as of January 1, 2024, all jurisdictions (and therefore all waste producers) will be subject to enforcement, including monetary fines. While SB 1383 has a myriad of requirements for commercial as well as residential waste producers, the OCGJ narrowed its investigation to the impacts associated with local jurisdiction compliance with SB 1383 on Orange County residents. This report focuses on the specific requirements associated with SB 1383, the local actions taken so far to meet those requirements, the success of those actions and how they are measured, local agency outreach and education efforts, and the challenges that remain for the County of Orange and the county’s thirty-four cities.

REASON FOR THE STUDY
The organics diversion mandate under SB 1383 began to take effect in California on January 1, 2022. This means that jurisdictions in California were required to implement programs for the separation and diversion of organic waste, including food scraps, from landfill disposal. The actual enforcement of this requirement started on January 1, 2024.

The OCGJ’s intent was to take a closer look at how Orange County jurisdictions are responding to this mandate, their successes and challenges, and the impact of this new requirement on the Orange County residents.

The OCGJ initially focused on two questions:
• What actions have Orange County jurisdictions taken to implement organics collection for their residential customers, and how do they measure the success of these actions?
• Given that one key to the success of SB 1383 is public participation, have local jurisdictions conducted sufficient outreach and education? While investigating the answers to these questions, the OCGJ discovered additional information about Orange County recycling and waste management that is notably relevant to this topic and is included in this report.

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METHOD OF STUDY
The OCGJ toured several local waste facilities, including:
• The Frank R. Bowerman landfill in Irvine, owned by the County of Orange and managed and operated by OC Waste & Recycling (OCW&R). This enabled the OCGJ to gain a better understanding of the refuse collection and disposal process.
• The MRF operated by Rainbow Environmental Services, located at 17121 Nichols Lane in the city of Huntington Beach. This facility was previously decommissioned then reopened on short notice when the newer Anaheim MRF was destroyed by fire in February 2022.
• The MRF operated by Waste Management, located at 2050 North Glassell Street in the city of Orange. This tour allowed the OCGJ to gain information on the operation of a newer, larger MRF.

The OCGJ reviewed SB 1383 and related documents, training videos, public meeting recordings, and presentations available on the CalRecycle website.

The OCGJ reviewed online publications from various organizational and media sources related to trash hauling and general operations of the waste and recycling industry and conducted fourteen interviews with representatives from the waste industry, local jurisdictions, and the State’s enforcement agency.

The OCGJ also disseminated a nine-question survey to each of the thirty-four Orange County cities and the County to obtain their perspectives on local implementation of SB 1383. Follow-up interviews were conducted with representatives of the same ten cities included in the 2019-2020 OCGJ report “OC Recycling: Doing it the Right Way” and the County for additional insight into each jurisdiction’s implementation of, and compliance with, SB 1383’s requirements.

The OCGJ utilized the same sampling of ten cities as well as the County of Orange (for its unincorporated areas) because they represent different geographical areas of the county (from Brea in the north to Dana Point in the south) and reflect a variety of larger cities by population and/or land area (e.g., Santa Ana, Irvine) and some that are smaller (e.g., Buena Park, Mission Viejo).

Individual members of the OCGJ also observed the types and colors of carts, their labeling, and their contents at various locations throughout the county. These observations were documented via photographs to illustrate dissimilar details and nuances among jurisdictions and haulers.

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INVESTIGATION AND ANALYSIS
Overview of SB 1383
SB 1383 set ambitious targets for reducing organic waste disposal in landfills from the 2014 baseline: fifty percent by January 2020 (which was not met), and seventy-five percent by January 2025. Organic waste comprises more than half the waste stream in California and includes green waste, wood, food waste, and fibers such as paper and cardboard. When left to decompose in landfills, organic waste releases large amounts of methane gas. The overall goal of the bill is to reduce greenhouse gas emissions by at least four million metric tons per year by 2030 by requiring that “organics” going to the landfill be reduced to 5.7 million metric tons by 2025.

This groundbreaking legislation is a statewide effort to reduce Short-Lived Climate Pollutants (SLCPs). SLCPs such as methane, black carbon, tropospheric (ground level) ozone, and hydrofluorocarbons remain in the atmosphere for a shorter time than carbon dioxide but have a much stronger warming effect. Therefore, reducing SLCPs has the potential to significantly slow global climate change in the near term (California Air Resources Board, 2024). The State’s efforts and policies are intended to substantially increase the rate of organic material diversion away from landfills. This diversion goal is meant to move the State towards the desired “circular economy” where organic waste is collected, converted into new materials or products, and reused for other purposes.

Figure 1 Source: CalRecycle

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How Are Jurisdictions Impacted by SB 1383?
In this context, a jurisdiction may be a city, county, city and county, or special district that collects solid waste.

The jurisdictions’ responsibilities specified by SB 1383 relating to residential units include (CalRecycle, 2024):
• Providing organics collection services to all residents • Conducting education and outreach to community
• Procuring recyclable and recovered organic products
• Securing access to recycling capacity
• Monitoring compliance and conducting enforcement

SB 1383 contains a significant amount of detail regarding the types of allowable collection programs. Critical requirements are listed below:

• Each resident must subscribe to an organic waste collection service that either “source-separates” the waste by using separate bins or transports all unsegregated waste to a facility that recovers seventy-five percent of the organic content collected.

• SB 1383 requires one of the following collection options:

A one-can system – all contents are transported to a facility that recovers seventy-five percent of the organic content.

A two-can system – at least one of the containers (whichever includes organic waste and garbage) must be transported to a facility that recovers seventy- five percent of the organic content.

A three-can system – organic waste is required to be source separated (recyclables in blue, food and yard waste in green).

Jurisdictions must also conduct education and outreach to all residents regarding collection service requirements, contamination standards, self-haul requirements, and overall compliance with SB 1383. Educational material must be linguistically accessible to non-English speaking residents.

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Figure 2 Source: CalRecycle
Orange County Jurisdictions’ SB 1383 Implementation Status How do jurisdictions assess their own progress?
The OCGJ sent a ten-question survey to thirty-four cities and OC Waste & Recycling (OCW&R) and received thirty-one responses. The purpose of the survey was to verify how these agencies measure their progress on the implementation of various aspects of SB 1383. Survey participants were asked to mark their progress on the scale from 1 (significant challenges) to 5 (excellent) for each of the questions. The survey questions as well as more detailed information on responses and follow-up comments and explanations is included in Appendix A.

Main Implementation Issues
To follow-up on the survey, the OCGJ conducted a series of interviews with jurisdictions to learn more about their specific challenges in implementing SB 1383, successes, concerns, and solutions to common issues. The eleven jurisdictions interviewed were the same included in the 2019-2020 OCGJ report “OC Recycling: Doing it the Right Way” representing different geographical areas of the county and a variety of populations and/or land areas. Several themes emerged from the interviews:
• Container Standardization

SB 1383 requires standardized colors for residential and business curbside containers (green for organics, blue for recyclables, and grey for trash). It also requires container

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2023-2024 Orange County Grand Jury Page 9

labels on new containers. The color scheme for collection containers must meet either of these requirements:

o The lid of the container is the correct designated color o The body of the container is the correct designated color, and the lid is also the same specified color or may be gray or black

Out of the eleven jurisdictions interviewed, only two have distributed containers that meet the State requirements. However, jurisdictions are not required to replace containers prior to January 1, 2036. Most are replacing their containers gradually over time. The variety of colors used by various jurisdictions contributes to the confusion and potentially increases contamination rates. In many cases, existing containers include embossed information that is no longer accurate or labels with outdated information (see examples below).

Figure 3. The embossed information wrongly directs residents to put plastic grocery bags in the recycling container. Photo: OCGJ

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Figure 4. The old sticker incorrectly directs residents to put shoes, clothes, and other textiles in the recycling container. Photo: OCGJ

Figure 5. Outside label on the ‘green waste’ container contains no information regarding food scraps. Photo: OCGJ

The following two images of the “Food Scrap” container (outside and inside) were taken by an OCGJ member in a public park. The contents of the container, which contains unallowable items, such as plastic packaging, further underscores the need for clear signage and more public education.

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Figure 6. Lid of the “Food Scraps” container in a public park from November 2023 showing correct information. Photo: OCGJ

Figure 7. Contents of the same “Food Scraps” container in the public park from November 2023. Photo: OCGJ

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Another standardization issue is that what is accepted for recycling varies among the jurisdictions and haulers.

For example, some allow palm fronds into organics bins while others do not, and some allow food scraps to be deposited in compostable bags while others do not, further adding to the confusion.

• Funding and Enforcement

While conducting interviews with the Orange County jurisdictions, the OCGJ learned that there are two approaches to funding their solid waste management programs (including SB 1383 implementation activities): (1) using an enterprise fund; and (2) using the general fund. Using an enterprise fund ensures that all revenues generated by the solid waste management program are reinvested in that program rather than being diverted into other needs of the jurisdiction.

Even though enforcement activities were effective starting January 1, 2024, jurisdictions only conduct inspections and spot-checks of residential customers’ organic and trash containers using either “lid flipping” or smart trucks that record the contents of the containers as they are being emptied. Haulers (via contracts) have been designated to perform these functions. If residents are found to be in violation, the first step is to provide them with additional educational materials and information. If the violation persists, warning notices are issued. The final step is issuing fines. The penalties imposed by a jurisdiction are based on Government Code Sections 53069.4, 25132, and 36900, and are as follows:

• First violation: $50-$100 per violation;
• Second violation: $100-$200 per violation;
• Third or subsequent violation: $250-$500 per violation

Penalties increase when an entity violates the same requirement within a one-year period (CalRecycle, 2024).

While jurisdictions have yet to collect fines, some have not even established the collection protocol or the account where collected fines will be deposited.

• Education and Outreach

Clearly, there is a need for more education and outreach. The success of SB 1383 implementation and the ability to reach the CalRecycle goal of a seventy-five percent diversion rate depend largely on residents’ compliance and behavior change. Education and outreach is the first and most critical component of that change.

“The accuracy of consumer disposal decisions directly influences the performance of the recycling system.” (Christian Blanco C. S., 2023) Talking Trash: Recyclables and Organic Waste

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Most interviewed jurisdictions collaborate with haulers to create and distribute educational materials. Others also use consulting services for that purpose. Outreach strategies, the number of outreach events and communications, as well as participation rates vary greatly from jurisdiction to jurisdiction, but most rely heavily on paper mailings, which may not be the most effective way of reaching the public. If combined with junk mail, the educational material may go unread into a recycling bin, if not the trash. Frequently, the information flyers are mailed together with hard-copy utility bills, which may overlook those who subscribe to electronic billing.

As part of their outreach/education campaigns, some of the interviewed jurisdictions purchased kitchen pails for recycling food scraps to distribute to some or all households.

These purchases were funded through SB 1383 assistance grants from CalRecycle, which most of the Orange County jurisdictions applied for and received.

The OCGJ reviewed a sampling of educational materials being distributed by several cities and concluded that the quality of these materials can range from highly informative publications with accessible and attractive designs to flimsy “newsletters” issued by haulers for their respective jurisdictions with graphics and instructions that are barely legible.

Paper mailings have their role but represent only one of many possible outreach methods. The recycling industry itself is embracing technological advancements, including the use of Artificial Intelligence (AI), in waste sorting, predicting trends, the use of smart hauler trucks and smart bins, as well as in outreach and education (Recycling Inside, 2023).

According to Recycling Inside, “AI can play a pivotal role in educating the public about recycling practices. Chatbots and virtual assistants powered by AI can provide real-time guidance on waste disposal, recycling guidelines, and collection schedules. By engaging with individuals through personalized interactions, AI-driven platforms can raise awareness, promote recycling behavior, and facilitate proper waste management at the consumer level.”

According to research by the Recycling Partnership, “People have a misconception that what is recyclable doesn’t change. They are recycling incorrectly in some cases because they are basing decisions on past guidelines and recycling knowledge such as believing milk cartons are wax coated and should not be recycled, or envelopes with windows should not be recycled. They think they know what they need to know about recycling because that’s what they’ve always known.” (Center for Sustainable Behavior & Impact, 2022)

More than seventy percent of people surveyed wish there was an easier way to get information on what can and can’t be recycled in their community. (Center for Sustainable Behavior & Impact, 2022)
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Determining the success of their outreach efforts is another challenge that Orange County jurisdictions are facing in the near future. Most jurisdictions need to determine how to measure outreach efforts, as the enforcement started January 1, 2024. Having common standards and methods to measure the success of public education and compliance, and regularly posting this information on the jurisdiction’s website related to SB 1383 goals, will give the public an incentive to comply with SB 1383. However, in the interim, there is a significant amount of visual evidence regarding the level of residents’ confusion as evidenced by the photo below. The photo is the amount of waste in the first five hours of a workday that was improperly included in residential recyclable containers and delivered to a MRF, where it had to be hand sorted out.

Figure 8: Waste improperly included in recyclable containers Photo: OCGJ

• Procurement of Recovered Organic Waste Products
Representatives from most of the jurisdictions the OCGJ interviewed indicated that meeting the procurement requirements of SB 1383 is challenging. This is due to their jurisdictions’ State-calculated procurement targets far exceeding the quantity of recovered organic waste products that they can utilize.

To comply with SB 1383, jurisdictions must procure recovered organic waste products to meet an annual procurement target. Recovered organic waste products include:

o Compost
o Mulch

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o Renewable energy (transportation fuel, electricity, and gas for heating) from anaerobic digestion
o Electricity from biomass conversion

Each jurisdiction’s procurement target is calculated by multiplying its population, as reported by the California Department of Finance, by the per capita procurement target (0.08 tons of organic waste per California resident per year).

The resulting procurement target can then be multiplied by product conversion factors (as established by the regulations) to determine the annual procurement requirements for recovered organic waste products.

Source: CalRecycle
As one of the survey respondents stated:
“Meeting the annual procurement target presents a significant challenge. In addition, the formula used to calculate a jurisdiction’s procurement target does not account for density or square miles. Denser areas equal less space to distribute mulch or compost.

More people equals higher procurement target.”
As a result, a number of jurisdictions with high procurement targets had to use grant funding to purchase the required amounts of compost/mulch. Because the required target procurement amounts exceeded what they can utilize in their communities, they had to distribute the compost/mulch (via hauler) to agricultural communities outside Orange County. They also admitted that without grant funding, meeting the targets will be even more difficult and will require diverting resources from their own communities or raising rates.

The regulations limit procurement to “use or giveaway, and do not include the sale of products [14CCR Section 18993.1(e)(1)] so jurisdictions cannot sell the procured recovered organic waste products, such as compost, via a third party.” (CalRecycle, 2022)
Renewable Natural Gas (RNG) is one of the products that can be counted towards meeting a jurisdiction’s procurement goal. Haulers operating in Orange County, including Republic, CR&R, and Waste Management, utilize trucks powered by RNG.

However, in most cases the RNG they use is not purchased from an approved facility so it cannot be counted towards the required procurement goal. CalRecycle maintains a list of anaerobic digestion facilities in California to help jurisdictions find renewable gas that may be eligible towards their SB 1383 procurement obligations.

Currently, this list contains only six facilities that produce Compressed Natural Gas (CNG), which in this case is presumably compressed RNG. None of these facilities is located in Orange County. The closest are located in Riverside County (Perris), San Bernardino County (Victorville and Rialto), and San Diego County (Escondido).

The issue of RNG is further complicated by the fact that some sewage treatment plants also produce RNG, which (according to CalRecycle) is mostly ineligible. Below is the Talking Trash: Recyclables and Organic Waste

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information included in “Frequently Asked Questions” on RNG on the CalRecycle website (CalRecycle, 2022):

Renewable gas derived solely from sewage is ineligible for meeting the procurement target because a Publicly Owned Treatment Work (POTW) is not a solid waste facility and therefore not in the scope of the legislative intent of SB 1383. Sewage is also not typically destined for a landfill, so its use does not help achieve the landfill diversion goals.

However, Title 14 explicitly authorizes POTWs to accept food waste without a solid waste facility permit, making it functionally similar to incentivizing biomethane from a solid waste facility. Therefore, it is justifiable to allow the portion of renewable gas resulting from the digestion of food waste at POTWs to count toward the procurement targets, provided the POTW accepts food waste from specified facilities or operations [see 14 CCR Section 18993.1(h)(1)] and meets all other applicable regulatory requirements. For more information, please see the Final Statement of Purpose and Necessity (pages 178-180).

The issue of procurement difficulties encountered by California jurisdictions is mentioned in the Little Hoover Commission 2023 report on the implementation of SB 1383. The Commission recommended that “the state should expand the list of compliance pathways and products eligible to count toward a jurisdiction’s procurement requirements.” (Little Hoover Commission, 2023)
• Coordination and Vision for the Future
In a county with thirty-four cities and several other jurisdictions, coordination, collaboration, and sharing resources and best practices can be a challenge. The OCGJ learned that county-wide groups meet on a regular basis, including a waste management coordinators’ group, a haulers’ group, and a market development group.

Additionally, the OCGJ learned that OCW&R has assumed a leadership role in positioning Orange County for a greener, more sustainable future.

OCW&R has a clear vision for a regional, county-wide approach to the implementation of SB 1383, which includes not only organics and edible food strategies, but also market creation and development, procurement and compliance, and regional standardization and collaboration.

The details of their vision are outlined in the 2024 presentation to the legislative group, which is available on the OCW&R website (OC Waste & Recycling, 2024).

The following slide has been taken from this presentation.

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Figure 9. Circular economy concept for Orange County Source: OCW&R

• Other Issues
Multi-family housing units: While not within the scope of this report, it should be noted that services to multi-family units still pose a significant challenge. Jurisdictions are required to provide organic waste collection to multi-family units. Many find it difficult to provide a three-bin source-separated service to these units due to limited space.

Creative solutions, such as providing smaller organics containers or containers that are placed in a common area to serve multiple units, have been utilized by Orange County cities, but full compliance is difficult to achieve.

The cost of SB 1383 implementation: The Little Hoover Commission Report states that the gross cost of implementation was determined to be $40 billion between 2019 and 2030. (CalRecycle, 2019) “About 5 percent of this figure represents soft costs (i.e. the work local jurisdictions must do to create organic waste programs, educate the public, and ensure health, safety, and quality control measures are met). The other 95 percent represents the cost of disposing of organic waste, including constructing infrastructure” (Little Hoover Commission, 2023). Most Orange County jurisdictions interviewed by the OCGJ indicated that they had to increase their residential and/or business waste collection rates to cover the cost of expanded services mandated by SB 1383.

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COMMENDATIONS
• County of Orange, OC Waste & Recycling is commended for having successfully met SB 1383 mandates, developing new composting infrastructure, a model education and outreach program, moving towards robust and repurposing recycling programs, and developing gas-to-energy facilities to produce renewable energy.

• City of Mission Viejo, Solid Waste Program is commended for their proactive implementation of SB 1383 mandates, distributing compliant waste containers to all residents, and producing a robust outreach and education program using numerous delivery methods.

• City of Santa Ana Public Works, Trash and Recycling Program is commended for proactively revising their hauler contract to meet SB 1383 requirements, producing a notable and ongoing outreach and education program, distributing compliant waste containers to all residents, and fostering a highly collaborative relationship with their hauler.

FINDINGS
In accordance with California Penal Code Sections 933 and 933.05, the 2023-2024 Grand Jury requires responses from each agency affected by the findings presented in this section. The responses are to be submitted to the Presiding Judge of the Superior Court.

Based on its investigation titled “Talking Trash: Recyclables and Organic Waste,” the 2023-2024 Orange County Grand Jury has arrived at the following principal findings:

Container Standardization
F1. The majority of Orange County jurisdictions have not yet required their haulers to distribute residential containers that meet the CalRecycle standardized colors, leaving legacy and often incorrect or illegible labeling and embossing in place.

Funding and Enforcement

F2. While a jurisdiction may not delegate its overall responsibility for compliance with State requirements to a hauler, some jurisdictions have designated the task of imposing and collecting fines from residents to the hauler in accordance with State law. However, not all jurisdictions are clear on who ultimately receives and retains the collected fines.

F3. All jurisdictions will eventually start collecting fines from residents for non- compliance, but some have not yet determined whether the revenues will go into a waste and recycling enterprise fund or into the jurisdiction’s general fund.

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Education and Outreach

F4. In most jurisdictions, education and outreach is a joint effort between jurisdiction, hauler, and sometimes consultants, with the jurisdiction reviewing the materials before publication. The methods of dissemination vary by jurisdiction and hauler but frequently rely on a resident actively seeking the information, which requires the resident to have some awareness of the new mandates in the first place.

Most efforts primarily revolve around intermittent hard-copy paper mailings.

F5. Most jurisdictions currently have no way to accurately determine the effectiveness of their respective education and outreach efforts other than the eventual inspections or audits that will take place.

Procurement of Recovered Organic Waste Products

F6. There is some concern that there are not enough composting facilities in Orange County to process all organic waste, forcing some jurisdictions/haulers to transport it long distances for processing.

F7. There is currently no infrastructure in the county that is a State-approved source of Renewable Natural Gas (RNG) and energy from organic waste. Jurisdictions that use vehicles running on RNG procured from non-approved sources cannot count that RNG towards fulfillment of their procurement requirement.

F8. The formula used by the State to calculate a jurisdiction's procurement target does not account for a jurisdiction’s population density or geographic size (square miles). As such, meeting the annual procurement target presents a significant challenge for most jurisdictions.

F9. Many Orange County jurisdictions were unable to meet the requirement in SB 1383 to reduce organic waste sent to landfills by the 2020 deadline. It is unlikely the required seventy-five percent reduction will be achieved by the 2025 deadline.

F10. The current procurement requirements mandated by SB 1383 are unrealistic and likely unachievable by most jurisdictions.

RECOMMENDATIONS
In accordance with California Penal Code Sections 933 and 933.05, the 2023-2024 Grand Jury requires responses from each agency affected by the recommendations presented in this section. The responses are to be submitted to the Presiding Judge of the Superior Court.

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Based on its investigation titled “Talking Trash: Recyclables and Organic Waste,” the 2023-2024 Orange County Grand Jury makes the following recommendations:

Container Standardization

R1. All jurisdictions should expedite the acquisition and distribution of residential containers that meet the CalRecycle standardized colors. Additionally, until the compliant containers can be distributed, all jurisdictions should ensure the distribution of labeling for non-compliant containers that explain the current SB 1383 requirements applicable to their jurisdiction by June 30, 2025.

Funding and Enforcement

R2. By December 31, 2024, all jurisdictions should ensure their waste hauling agreements are in compliance with State statute so that haulers may be designated to perform certain required tasks but are not improperly delegated overall responsibility for compliance. Additionally, all jurisdictions should ensure that any fines collected by a hauler are forwarded to the jurisdiction.

R3. The OCGJ recommends that all jurisdictions utilize a dedicated waste and recycling enterprise fund for collection of fines for non-compliance with SB 1383 by December 31, 2024.

Education and Outreach

R4. By December 31, 2024, all jurisdictions should diversify the methods and media used for education and outreach to include, among others, various social media platforms, emails to residents, newspaper, television, flyer mailings, community events, and appearances at other public gatherings.

R5. By December 31, 2024, and in order to gauge the effectiveness of their education and outreach efforts, all jurisdictions should develop new methods to engage residents directly to help determine their awareness of the requirements associated with SB 1383, such as surveys, online quizzes, and door-to-door polling.

Procurement of Recovered Organic Waste Products

R6. By June 30, 2025, the OCGJ recommends that all jurisdictions participate in the OCW&R-led efforts to develop a coordinated county-wide approach to the organics recycling infrastructure and programs as well as procurement requirements associated with SB 1383, working towards creating circular economy as a long-term goal.

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R7. By December 31, 2024, the Orange County Board of Supervisors and all Orange County cities should lobby appropriate members of the State Legislature and/or CalRecycle to revise the organic waste diversion targets to better reflect Orange County’s waste amounts, revise the jurisdictions’ procurement requirements to better represent the limited options currently available for procurement, the jurisdictions’ varying populations, population densities, and geographic size, and to delay associated enforcement actions by the State.

RESPONSES
The following excerpts from the California Penal Code provide the requirements for public agencies to respond to the Findings and Recommendations of this Grand Jury report:

Section 933

(c) No later than 90 days after the grand jury submits a final report on the operations of any public agency subject to its reviewing authority, the governing body of the public agency shall comment to the presiding judge of the superior court on the findings and recommendations pertaining to matters under the control of the governing body, and every elected county officer or agency head for which the grand jury has responsibility pursuant to Section 914.1 shall comment within 60 days to the presiding judge of the superior court, with an information copy sent to the board of supervisors, on the findings and recommendations pertaining to matters under the control of that county officer or agency head and any agency or agencies which that officer or agency head supervises or controls. In any city and county, the mayor shall also comment on the findings and recommendations. All of these comments and reports shall forthwith be submitted to the presiding judge of the superior court who impaneled the grand jury. A copy of all responses to grand jury reports shall be placed on file with the clerk of the public agency and the office of the county clerk, or the mayor when applicable, and shall remain on file in those offices. One copy shall be placed on file with the applicable grand jury final report by, and in the control of the currently impaneled grand jury, where it shall be maintained for a minimum of five years.

Section 933.05.

(a) For purposes of subdivision (b) of Section 933, as to each grand jury finding, the responding person or entity shall indicate one of the following:

(1) The respondent agrees with the finding.
(2) The respondent disagrees wholly or partially with the finding, in which case the response shall specify the portion of the finding that is disputed and shall include an explanation of the reasons thereof.

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(b) For purposes of subdivision (b) of Section 933, as to each grand jury recommendation, the responding person or entity shall report one of the following actions:

(1) The recommendation has been implemented, with a summary regarding the implemented action.
(2) The recommendation has not yet been implemented, but will be implemented in the future, with a timeframe for implementation.
(3) The recommendation requires further analysis, with an explanation and the scope and parameters of an analysis or study, and a timeframe for the matter to be prepared for discussion by the officer or head of the agency or department being investigated or reviewed, including the governing body of the public agency when applicable. This timeframe shall not exceed six months from the date of publication of the grand jury report.
(4) The recommendation will not be implemented because it is not warranted or is not reasonable, with an explanation, thereof.

Responses Required
Comments to the Presiding Judge of the Superior Court in compliance with Penal Code Section 933.05 are required from:

Findings – 90 Day Response Required
OC Board of Supervisors: F1, F2, F3, F4, F5, F6, F7, F8, F9, F10 City Councils of:

Aliso Viejo F1, F2, F3, F4, F5, F6, F7, F8, F9, F10 Anaheim F1, F2, F3, F4, F5, F6, F7, F8, F9, F10
Brea F1, F2, F3, F4, F5, F6, F7, F8, F9, F10
Buena Park F1, F2, F3, F4, F5, F6, F7, F8, F9, F10 Costa Mesa F1, F2, F3, F4, F5, F6, F7, F8, F9, F10 Cypress F1, F2, F3, F4, F5, F6, F7, F8, F9, F10
Dana Point F1, F2, F3, F4, F5, F6, F7, F8, F9, F10 Fountain Valley F1, F2, F3, F4, F5, F6, F7, F8, F9, F10 Fullerton F1, F2, F3, F4, F5, F6, F7, F8, F9, F10
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Garden Grove F1, F2, F3, F4, F5, F6, F7, F8, F9, F10 Huntington Beach F1, F2, F3, F4, F5, F6, F7, F8, F9, F10 Irvine F1, F2, F3, F4, F5, F6, F7, F8, F9, F10
La Habra F1, F2, F3, F4, F5, F6, F7, F8, F9, F10
La Palma F1, F2, F3, F4, F5, F6, F7, F8, F9, F10
Laguna Beach F1, F2, F3, F4, F5, F6, F7, F8, F9, F10 Laguna Hills F1, F2, F3, F4, F5, F6, F7, F8, F9, F10 Laguna Niguel F1, F2, F3, F4, F5, F6, F7, F8, F9, F10 Laguna Woods F1, F2, F3, F4, F5, F6, F7, F8, F9, F10 Lake Forest F1, F2, F3, F4, F5, F6, F7, F8, F9, F10 Los Alamitos F1, F2, F3, F4, F5, F6, F7, F8, F9, F10 Mission Viejo F1, F2, F3, F4, F5, F6, F7, F8, F9, F10 Newport Beach F1, F2, F3, F4, F5, F6, F7, F8, F9, F10 Orange F1, F2, F3, F4, F5, F6, F7, F8, F9, F10
Placentia F1, F2, F3, F4, F5, F6, F7, F8, F9, F10
Rancho Santa Margarita F1, F2, F3, F4, F5, F6, F7, F8, F9, F10 San Clemente F1, F2, F3, F4, F5, F6, F7, F8, F9, F10 San Juan Capistrano F1, F2, F3, F4, F5, F6, F7, F8, F9, F10 Seal Beach F1, F2, F3, F4, F5, F6, F7, F8, F9, F10 Stanton F1, F2, F3, F4, F5, F6, F7, F8, F9, F10
Tustin F1, F2, F3, F4, F5, F6, F7, F8, F9, F10
Villa Park F1, F2, F3, F4, F5, F6, F7, F8, F9, F10 Westminster F1, F2, F3, F4, F5, F6, F7, F8, F9, F10 Talking Trash: Recyclables and Organic Waste

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Yorba Linda F1, F2, F3, F4, F5, F6, F7, F8, F9, F10 Recommendations – 90 Day Response Required
OC Board of Supervisors: R1, R2, R3, R4, R5, R6, R7
City Councils of:

Aliso Viejo R1, R2, R3, R4, R5, R6, R7
Anaheim R1, R2, R3, R4, R5, R6, R7
Brea R1, R2, R3, R4, R5, R6, R7
Buena Park R1, R2, R3, R4, R5, R6, R7
Costa Mesa R1, R2, R3, R4, R5, R6, R7
Cypress R1, R2, R3, R4, R5, R6, R7
Dana Point R1, R2, R3, R4, R5, R6, R7
Fountain Valley R1, R2, R3, R4, R5, R6, R7
Fullerton R1, R2, R3, R4, R5, R6, R7
Garden Grove R1, R2, R3, R4, R5, R6, R7
Huntington Beach R1, R2, R3, R4, R5, R6, R7
Irvine R1, R2, R3, R4, R5, R6, R7
La Habra R1, R2, R3, R4, R5, R6, R7
La Palma R1, R2, R3, R4, R5, R6, R7
Laguna Beach R1, R2, R3, R4, R5, R6, R7
Laguna Hills R1, R2, R3, R4, R5, R6, R7
Laguna Niguel R1, R2, R3, R4, R5, R6, R7
Laguna Woods R1, R2, R3, R4, R5, R6, R7
Lake Forest R1, R2, R3, R4, R5, R6, R7
Los Alamitos R1, R2, R3, R4, R5, R6, R7
Mission Viejo R1, R2, R3, R4, R5, R6, R7
Newport Beach R1, R2, R3, R4, R5, R6, R7
Orange R1, R2, R3, R4, R5, R6, R7
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Placentia R1, R2, R3, R4, R5, R6, R7
Rancho Santa Margarita R1, R2, R3, R4, R5, R6, R7
San Clemente R1, R2, R3, R4, R5, R6, R7
San Juan Capistrano R1, R2, R3, R4, R5, R6, R7
Seal Beach R1, R2, R3, R4, R5, R6, R7
Stanton R1, R2, R3, R4, R5, R6, R7
Tustin R1, R2, R3, R4, R5, R6, R7
Villa Park R1, R2, R3, R4, R5, R6, R7
Westminster R1, R2, R3, R4, R5, R6, R7
Yorba Linda R1, R2, R3, R4, R5, R6, R7

REFERENCES

California Air Resources Board. (2024). Short-Lived Climate Pollutants. Retrieved from https://ww2.arb.ca.gov/our-work/programs/slcp/about
CalRecycle. (2019, October 2). Initial Statement of Reasons Appendix A: Cost Update.

Retrieved from CalRecycle: https://www2.calrecycle.ca.gov/Docs/Web/115980 CalRecycle. (2022, December 5). Procurement Questions and Answers. Retrieved from CalRecycle: https://calrecycle.ca.gov/organics/slcp/faq/recycledproducts / CalRecycle. (2023). SB1383 Education and Outreach Resources. Retrieved from CalRecicle: https://calrecycle.ca.gov/organics/slcp/education/ CalRecycle. (2024). 2022 State of Disposal and Recycling Report. Sacramento:

Department of Resources Recycling and Recovery (CalRecycle). Retrieved from https://www2.calrecycle.ca.gov/Publications/Details/1732 CalRecycle. (2024). Enforcement Questions and Answers. Retrieved from https://calrecycle.ca.gov/organics/slcp/faq/enforcement/ CalRecycle. (2024). SB 1383 Education and Outreach Resources. Retrieved from https://calrecycle.ca.gov/organics/slcp/education/

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2023-2024 Orange County Grand Jury Page 26

Center for Sustainable Behavior & Impact. (2022). Consumer Insights on Packaging, Labels, and Claims for Recycling. The Recycling Partnership. Retrieved from https://recyclingpartnership.org/wp-
content/uploads/dlm_uploads/2023/06/Consumer_Labeling_Research_Final.pdf Christian Blanco, C. S. (2023, May 30). America's Broken Recycling System. Retrieved from California Management Review : https://cmr.berkeley.edu/2023/05/america- s-broken-recycling-system/
Christian Blanco, C. S. (2023, May 30). Is it Time to Consider a National Recycling Standard? California Management Review. Retrieved from
https://cmr.berkeley.edu/2023/05/is-it-time-to-consider-a-national-recycling- standard /
Little Hoover Commission. (2023). Reducing California's Landfill Methane Emissions:

SB1383 Implementation. Sacramento: Little Hoover Commission.

Mouchard, A. (2024, May 4). Tech meets trash in Orange County’s landfill future.

Orange County Register. Retrieved from
https://www.ocregister.com/2024/05/04/tech-meets-trash-in-orange-countys- landfill-future/
OC Waste & Recycling. (2024). OCW&R. Retrieved from OCW&R:
https://oclandfills.com/sites/ocwr/files/2024-
03/1383%20IMAGINE%20WHAT%20CAN%20BE%20Presentaiton.pdf
Recycling Inside. (2023, June 2). Revolutionizing Recycling: The Relevance of Artificial Intelligence in the Recycling Industry. Retrieved from
https://recyclinginside.com/the-relevance-of-artificial-intelligence-in-the-recycling- industry/
Savage, S. (2023, February 16). Forbes. Retrieved from
https://www.forbes.com/sites/stevensavage/2023/02/16/the-golden-states- circular-economy-goals-is-that-just-california-dreamin-or-the- future/?sh=95c357338e58

GLOSSARY
AB Assembly Bill
CalRecycle California Department of Resources Recycling and Recovery Talking Trash: Recyclables and Organic Waste

2023-2024 Orange County Grand Jury Page 27

Circular Economy Current economic models consist of acquiring materials, making them into products, and then those products become waste. A circular economy reduces material use, redesigns materials and products to be less resource intensive, and recaptures “waste” as a resource to manufacture new materials and products.

Compost Compost is made from a variety of organic materials and is used to add nutrients and improve soil structure by mixing it into the soil.

Mulch Mulch is typically made from a single material like straw, grass clippings, or wood chips and is spread on top of the soil to suppress weeds, retain moisture, regulate soil temperature, and protect plant roots.

MRF Material Recovery Facility
OCGJ Orange County Grand Jury
OCW&R OC Waste & Recycling, a department of the County of Orange Organic Waste Solid wastes originated from living organisms and their metabolic waste products, and from petroleum, which contain naturally produced organic compounds, and which are biologically
decomposable by microbial and fungal action into the constituent compounds of water, carbon dioxide, and other simpler organic compounds. Sometimes called biodegradable waste.

ORNGE Organics to Natural Gas and Energy

POTW Publicly Owned Treatment Work

Recycling Using waste as material to manufacture a new product. Recycling involves altering the physical form of an object or material and making a new object from the altered material.

RNG Renewable Natural Gas

SB Senate Bill

SLCP Short-Lived Climate Pollutants

Solid Waste Discarded or abandoned materials. Solid wastes can be solid, liquid, semi-solid or containerized gaseous material.

Waste Objects or materials for which no use or reuse is intended.

Talking Trash: Recyclables and Organic Waste

2023-2024 Orange County Grand Jury Page 28

APPENDICES
APPENDIX A – SURVEY RESULTS
Survey participants were asked to mark their progress on a scale from 1 (significant challenges) to 5 (excellent progress) for each of the nine questions. On the following bar graphs, the ‘x’ axis (horizontal) depicts the rating scale from 1 to 5. The ‘y’ axis (vertical) represents the number of respondents that gave themselves a particular rating.

Was your city successful in meeting the goal of reducing organic waste disposal 50% by 2020?

Are you confident that your city will meet the goal of reducing organic waste 75% by 2025?

Talking Trash: Recyclables and Organic Waste

2023-2024 Orange County Grand Jury Page 29

How would you rate your city's success in providing organic waste collection services to all residents?

How successful is your city in recycling these organic materials?

How would you rate your confidence that city residents have been educated to have sufficient knowledge of the composting requirements (and associated restrictions) with the proper disposal of yard trimmings and food scraps?

Talking Trash: Recyclables and Organic Waste

2023-2024 Orange County Grand Jury Page 30

How successful was your city in procuring a quantity of recovered organic waste products annually?

How would you rate your city's success in meeting the record-keeping requirements associated with SB1383, including but not limited to, inspection and enforcement, compliance reviews, investigation of complaints, and alleged violations?

How satisfied are you that your current agreements(s) with the hauler(s) that service your city are adequate to comply with all provisions of residential services required by SB1383?

Talking Trash: Recyclables and Organic Waste

2023-2024 Orange County Grand Jury Page 31

Are your city's current staffing levels that are, or will become, responsible for all aspects of full SB1383 compliance adequate to meet the tasks at hand?

The following examples of additional comments or explanations for their answers to the questions above were provided by survey respondents:
“Comprehensive implementation and effective management of SB 1383 would require additional resources and financial support. Despite our [jurisdiction’s] proactive approach, including securing a new hauler/franchise agreement . . . that aligns with SB 1383's requirements and achieving near-complete adoption of these guidelines, there remains a widespread reluctance towards organic recycling. Ongoing educational efforts are in place and will continue; however, achieving significant behavioral change and compliance will require additional resources.”
“[Our jurisdiction has] been working on compliance regarding SB 1383 with new franchise agreements, building out local infrastructure, meeting the SB 619 procurement targets, providing education and outreach, programs are being implemented to incrementally improve participation and increase diversion. We are increasing staffing levels to help with continued support for compliance as it requires increased effort for more inspections, waste characterizations, more education and outreach, further program development, market creation and development for compost and mulch, inspections, education, and enforcement support. Although meeting the 75% goal requires more heavy lifting, I anticipate we will see incremental improvements from our efforts.”
“SB 1383 has proven to challenge the recycling habits of many throughout the [jurisdiction]. Through updated franchise agreements . . . and CalRecycle grant funding, we have been able to educate and encourage change in disposal habits as required via SB 1383. Additional outreach outlining the requirements and benefits of recycling organic material will be key in successfully transitioning residents and business owners to recycle organic material.”
“[We] started a new franchise agreement after an RFP process . . . . This allowed us to incorporate all hauler-related SB 1383 compliance activities and select an innovative

Talking Trash: Recyclables and Organic Waste

2023-2024 Orange County Grand Jury Page 32

organic waste collection program. We are facing procurement challenges as energy related products are not readily available (particularly) RNG for collection vehicles.

Staffing may prove to be a challenge, depending upon the amount of complaints, inspections, and enforcement actions we are required to address.” “Procurement [is our] biggest challenge.”
“Our agreement with [the hauler] required that they implement 1383 compliant programming immediately for residential. It also includes education/outreach, contamination monitoring, purchase or compost/mulch on our behalf. Residential 3-cart was implemented on day one of the agreement. However, even with education, residents are hesitant to participate with food in the organics container due to not being allowed to use compostable bags and therefore attracting bugs and vermin.” “Meeting the annual procurement target presents a significant challenge. [The hauler’s] collection trucks are fueled with RNG. The RNG purchased is California produced, though not SB 1383 qualified. In addition, the formula used to calculate a jurisdiction’s procurement target does not count for density or square miles. Denser areas equal less space to distribute mulch or compost. More people equals higher procurement target.” “As with any new program where you need to change habits and behavior, it is going to a long-term project to get adults in the habit of separating their food scraps. State of CA should implement a statewide outreach campaign, and not just rely on local jurisdictions to provide all the outreach.”

Talking Trash: Recyclables and Organic Waste

2023-2024 Orange County Grand Jury Page 33

APPENDIX B – CIRCULAR ECONOMY STARTS IN YOUR KITCHEN

Circular conomy at or

August 13, 2024

The Honorable Maria D. Hernandez
Presiding Judge of the Superior Court
700 Civic Center Drive West
Santa Ana, CA 92701

RE: City of Buena Park Response to Grand Jury Report – Talking Trash: Recyclables and Organic Waste

Dear Honorable Judge Hernandez:

The Buena Park City Council has reviewed the Orange County Grand Jury’s report entitled, Talking Trash: Recyclables and Organic Waste. Below is the City of Buena Park’s response to the aforementioned report:

FINDINGS:

Container Standardization

F1 The majority of Orange County jurisdictions have not yet required their haulers to distribute residential containers that meet the CalRecycle standardized colors, leaving legacy and often incorrect or illegible labeling and embossing in place.

Response: The respondent partially disagrees with the finding. The City of Buena Park already requires its trash hauler, EDCO, to distribute residential and commercial containers that meet the CalRecycle standardized colors and label requirements (e.g. green for organics, blue for recyclables, and gray for trash). The body and lid of residential containers are the correct designated color. The body of commercial containers are the correct designated color, and the lids are black.

Funding and Enforcement

F2 While a jurisdiction may not delegate its overall responsibility for compliance with state requirements to a hauler, some jurisdictions have designated the task of imposing and collecting fines from residents to the hauler, in accordance with state law. However, not all jurisdictions are clear on who ultimately receives and retains the collected fines.

Response: The respondent partially disagrees with the finding. The City of Buena Park receives and retains the collected fines, and desires to note the following regarding the Grand Jury’s findings pertaining to “Funding and Enforcement”:
1) The Grand Jury’s report states that jurisdictions only conduct inspections and spot-checks of residential customers’ organic and trash containers, and Respondent desires to highlight The Honorable Maria D. Hernandez
Talking Trash: Recyclables and Organic Waste

Page 2 ends

that SB 1383 requires all routes to be randomly audited (i.e. trash, recycle, and organics).
2) In addition, Section 18984.5(b)(3) of Title 14 of the California Code of Regulations does not require a jurisdiction to impose administrative civil penalties on generators that violate the prohibition in Section 18984(a) on placing prohibited
container contaminants in a collection container.

F3 All jurisdictions will eventually start collecting fines from residents for non- compliance, but some have not yet determined whether the revenues will go into a waste and recycling enterprise fund or into the jurisdiction’s General Fund.

Response: The City of Buena Park agrees with this finding.

Education and Outreach

F4 In most jurisdictions, education and outreach is a joint effort between jurisdiction, hauler, and sometimes consultants, with the jurisdiction reviewing the materials before publication. The methods of dissemination vary by jurisdiction and hauler but frequently rely on a resident actively seeking the information, which requires the resident to have some awareness of the new mandates in the first place. Most efforts primarily revolve around intermittent hard-copy paper mailings.

Response: The respondent partially disagrees with the finding. The City of Buena Park and its waste hauler, EDCO, use various methods to educate and create awareness of the new mandates including but not limited to:
1) Print (Environmental Times Newsletters, statement messages, postcards);
2) Direct contact (personal site visits, waste assessments, presentations, participation at community events);
3) Electronic (email blasts, website posts, social media); and 4) The City’s hauler provides access to an extensive bilingual video library and a “What Goes Where” look up feature on its website.

F5 Most jurisdictions currently have no way to accurately determine the effectiveness of their respective education and outreach efforts other than the eventual inspections or audits that will take place.

Response: The City of Buena Park agrees with this finding.

Procurement of Recovered Organic Waste Products

F6 There is some concern that there are not enough composting facilities in Orange County to process all organic waste, forcing some jurisdictions/haulers to transport it long distances for processing.

The Honorable Maria D. Hernandez
Talking Trash: Recyclables and Organic Waste

Page 3 ends

Response: The respondent partially disagrees with the finding. The City of Buena Park’s waste hauler, EDCO, guarantees adequate capacity for organic waste processing.

F7 There is currently no infrastructure in the county that is a State-approved source of Renewable Natural Gas (RNG) and energy from organic waste.

Jurisdictions that use vehicles running on RNG procured from non- approved sources cannot count that RNG toward fulfillment of their procurement requirement.

Response: The City of Buena Park agrees with this finding.

F8 The formula used by the State to calculate a jurisdiction's procurement target does not account for a jurisdiction’s population density or geographic size (square miles). As such, meeting the annual procurement target presents a significant challenge for most jurisdictions.

Response: The City of Buena Park agrees with this finding.

F9 Many Orange County jurisdictions were unable to meet the requirement in SB 1383 to reduce organic waste sent to landfills by the 2020 deadline. It is unlikely the required seventy-five percent reduction will be achieved by the 2025 deadline.

Response: The City of Buena Park agrees with this finding.

F10. The current procurement requirements mandated by SB 1383 are unrealistic and likely unachievable by most jurisdictions.

Response: The City of Buena Park agrees with this finding.

RECOMMENDATIONS:

Container Standardization

R1. All jurisdictions should expedite the acquisition and distribution of residential containers that meet the CalRecycle standardized colors.

Additionally, until the compliant containers can be distributed, all jurisdictions should ensure the distribution of labeling for non-compliant containers that explain the current SB 1383 requirements applicable to their jurisdiction by June 30, 2025.

Response: The recommendation has been implemented. The City of Buena Park’s waste hauler, EDCO, distributes residential and commercial containers that meet the CalRecycle standardized colors and label requirements (e.g. green for organics, blue for recyclables and gray for trash). The body and lid of residential containers are the correct designated color. The body of commercial containers are the correct designated color, and the lids are black.

The Honorable Maria D. Hernandez
Talking Trash: Recyclables and Organic Waste

Page 4 ends

Funding and Enforcement

R2 By December 31, 2024, all jurisdictions should ensure their waste hauling agreements are in compliance with State statute so that haulers may be designated to perform certain required tasks but are not improperly delegated overall responsibility for compliance. Additionally, all jurisdictions should ensure that any fines collected by a hauler are forwarded to the jurisdiction.

Response: The recommendation has been implemented. The City of Buena Park’s waste hauling agreements are in compliance with statutory requirements and any fines collected by the hauler are forwarded to the City.

R3 The OCGJ recommends that all jurisdictions utilize a dedicated waste and recycling enterprise fund for collection of fines for non-compliance with SB 1383 by December 31, 2024.

Response: The recommendation requires further analysis. The City intends to take a public education approach to violations, therefore revenues from enforcement are anticipated to be minimal. Additionally, the mandated date to begin enforcement was January 2024 and the City needs more time to determine if an enterprise fund is warranted.

Education and Outreach

R4 By December 31, 2024, all jurisdictions should diversify the methods and media used for education and outreach to include, among others, various social media platforms, emails to residents, newspaper, television, flyer mailings, community events, and appearances at other public gatherings.

Response: The recommendation has been implemented. The City of Buena Park and its waste hauler, EDCO, use various methods to educate and create awareness of the new mandates including but not limited to:
1) Print (Environmental Times newsletters, statement messages, postcards); 2) Direct contact (personal site visits, waste assessments, presentations, participation at community events);
3) Electronic (email blasts, website posts, social media); and 4) The City’s hauler also has an extensive bilingual video library and a “What Goes Where” look up feature on its website.

R5 By December 31, 2024, and in order to gauge the effectiveness of their education and outreach efforts, all jurisdictions should develop new methods to engage residents directly to help determine their awareness of the requirements associated with SB 1383, such as surveys, online quizzes, and door-to-door polling.

The Honorable Maria D. Hernandez
Talking Trash: Recyclables and Organic Waste

Page 5 ends

Response: The recommendation has not yet been implemented, but will be implemented in the future. A survey and/or online quiz will be implemented by December 31, 2024, to help determine the community’s awareness of the requirements associated with SB 1383.

Procurement of Recovered Organic Waste Products

R6 By June 30, 2025, the OCGJ recommends that all jurisdictions participate in the OCW&R-led efforts to develop a coordinated county-wide approach to the organics recycling infrastructure and programs as well as procurement requirements associated with SB 1383, working towards creating circular economy as a long-term goal.

Response: The recommendation has been implemented. The City of Buena Park participates in quarterly meetings with the OCW&R.

R7 By December 31, 2024, the Orange County Board of Supervisors and all Orange County cities should lobby appropriate members of the State Legislature and/or CalRecycle to revise the organic waste diversion targets to better reflect Orange County’s waste amounts, revise the jurisdictions’ procurement requirements to better represent the limited options currently available for procurement, the jurisdictions’ varying populations, population densities, and geographic size, and to delay associated enforcement actions by the State.

Response: The recommendation has not yet been implemented, but will be implemented by December 31, 2024.

Thank you for providing the City of Buena Park the opportunity to respond to this report.

Sincerely,

Aaron France
City Manager

cc: Buena Park City Council
Christopher G. Cardinale, City Attorney
City of Buena Park
City Council Regular Meeting Agenda Report

RESOLUTION APPROVING PLANS, SPECIFICATIONS, AND APPROVAL OF A CONTRACT WITH ROY ALLAN SLURRY SEAL, INC. FOR THE 2023-2024 ANNUAL SLURRY SEAL PROJECT Meeting
Tuesday, August 13, 2024, 5:00 PM
Agenda Group
NEW BUSINESS Item: 5A
Presented By
Aaron Esparza-Almaraz, Assistant Engineer
Prepared By
Mina Mikhael, Director of Public Works/City Engineer
Approved By
Aaron France, City Manager

RECOMMENDED ACTION
1) Adopt a resolution approving the plans and speciﬁcations for the 2023-2024 Annual Slurry Seal Project; 2) Award a contract to Roy Allan Slurry Seal, Inc. in the amount of $273,759; 3) Authorize contingency funds in the amount of $30,000 in the same purchase order; 4) Authorize construction engineering in the amount of $30,000; 5) Authorize the City Manager and City Attorney to make any necessary, non-monetary changes to the contract; and 6) Authorize the City Manager and City Clerk to execute the contract.

PREVIOUS CITY COUNCIL ACTION
None.

DISCUSSION
Slurry seal projects are an important part of the City’s pavement management plan. A slurry seal is a proactive maintenance treatment that prolongs the life of asphalt at a fraction of the cost of full pavement (structural) repair.

This treatment provides a new wearing surface for the road and protects it from sun and water damage. By sealing small cracks and imperfections, slurry sealing prevents water penetration into underlying layers, averting water damage resulting in potholes and pavement failures.

Work limits of the 2023-2024 Annual Slurry Seal Project includes the Crescent Avenue Frontage, Los Altos Drive, Los Encinos Street, Los Santos Way, Los Rancheros Drive, Los Nietos Street, Los Pacos Street, Los Feliz Drive, Los Indios Circle, Los Ramos Circle, Los Rapidos Circle, and Los Cientos Circle.

The project was advertised for competitive bids on June 17, 2024. Five (5) bids were received and publicly opened on July 11, 2024. Bid amounts ranged from $273,759 to $381,165. The lowest, responsible bid was submitted by Roy Allan Slurry Seal, Inc. of Santa Fe Springs, CA in the amount of $273,759. This contractor possesses the required license and has completed similar projects for the City. Staff recommends awarding the contract to Roy Allan Slurry Seal, Inc., and approving $30,000 each for construction engineering and contingency funds.

Construction is scheduled to begin in August 2024, and be completed in October 2024.

BUDGET IMPACT
Total cost for the project is in the amount of $333,759 and includes:

Construction Contract: $273,759
Construction Contingency: $30,000
Construction Engineering: $30,000
This project is budgeted in the FY 2023-2024 CIP budget, and is funded by the Gas Tax Fund (Account No. 24-9806- 590010). The project account has suﬃcient funds available for this project.

Attachments
01_Reso_23-24AnnualSlurrySeal.pdf
02_LocationMap_23-24AnnualSlurrySeal.pdf
03_BIDResults_23-24AnnualSlurrySeal.pdf
04_BidSummary_23-24AnnualSlurrySeal.pdf
05_Contract_23-24AnnualSlurrySeal.pdf

RESOLUTION NO. __________

A RESOLUTION OF THE CITY COUNCIL OF THE CI TY OF BUENA PARK APPR OVING PLANS AND SPECIFICATIONS FOR 2023-2024 ANNUAL SLURRY SEAL PROJECT IN SAID CITY.

WHEREAS, it is the intention of the City of Buena Park to construct certain improvements in the City; and
WHEREAS, the City Engineer has prepared specifications and plans for the construction of certain improvement(s).

NOW, THEREFORE, BE IT RESOLVED that the specifications and plans presented by the City be and are hereby approved as the specifications and plans for:

2023-2024 ANNUAL SLURRY SEAL PROJECT

PASSED AND ADOPTED this 13th day of August 2024, by the following called vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS

_______________________________________
Mayor
ATTEST:

_______________________________________
City Clerk

I, Adria M. Jimenez, MMC, City Clerk, hereby certify that the foregoing Resolution was duly and regularly passed and adopted at a regular meeting of the City Council of the City of Buena Park held this 13th day of August 2024.

_______________________________________
City Clerk

2023-2024 ANNUAL SLURRY SEAL PROJECTLOCATION MAP

LINCOLN AVENOT TO SCALEVALLEY VIEW ST

WALKER STPROJECTLOCATIONLOS ENCINOS STCRESCENT AVELOS ALTOS DR N

LOS ENCINOS STLOS RANCHOS DRLOS NIETOS STLOS PACOS STLOS FELIZ DRLOS FLORES AVELOS INDIOS CIR

CRESCENT AVE FRONTAGE RD

LOSRAPIDOSCIRLOSCIENTOSCIRLOSRAMOSCIR
Company Name Bid Amount
1 AMERICAN ASPHALT SOUTH, INC 375,830.00$
2 ROY ALLAN SLURRY SEAL, INC 273,759.00$
3 PAVEMENT COATINGS CO. 299,518.00$
4 COPP CONTRACTING INC. 381,165.00$
5 ALL AMERICAN ASPHALT 306,780.00$
6 7
8 9
10 City of Buena Park

BID RESULTS
2023-2024 ANNUAL SLURRY SEAL PROJECT
Project No. 510
Bid No. 2024-09
Bid Opening. 7/11/2024 - 2:00 P.M.

Item Approx. Unit Description Unit Total Unit Total Unit Total Unit Total Unit Total Unit Total Unit Total No Quantity Price Amount Price Amount Price Amount Price Amount Price Amount Price Amount Price Amount 1 1 LS Storm Water Pollution Prevention Plan (SWPPP/BMP) $5,000.00 $5,000.00 $2,500.00 $2,500.00 $2,600.00 $2,600.00 $2,500.00 $2,500.00 $5,500.00 $5,500.00 $10,000.00 $10,000.00 $4,620.00 $4,620.00 2 1 LS
Furnish and Install 2 Construction Information Signs,
Preconstruction Signs, Traffic Striping, Markers, and
Markings. Remove Existing Traffic Striping with Wet
Sandblasting & Remove Existing Raised Pavement
Markers.
$37,765.98 $37,765.98 $60,950.00 $60,950.00 $25,190.00 $25,190.00 $72,200.00 $72,200.00 $28,000.00 $28,000.00 $30,000.00 $30,000.00 $43,268.00 $43,268.00 3 409,800 SF Prepare Road and Install Rubber Polymer Modified Slurry (RPMS) Type I $0.57 $232,356.60 $0.40 $163,920.00 $0.33 $135,234.00 $0.22 $90,156.00 $0.50 $204,900.00 $0.40 $163,920.00 $0.37 $151,626.00 4 23,000 SF Cold Mill 2” of the Existing Asphalt Concrete Pavement and Removing Existing Paving Fabric if Encountered $0.77 $17,629.50 $1.03 $23,690.00 $1.40 $32,200.00 $1.35 $31,050.00 $1.60 $36,800.00 $1.00 $23,000.00 $1.28 $29,348.00 5 23,000 SF Construct 2” Thick Asphalt Concrete Surface Course, Type III C3 PG 70-10 (1/2” Rock) $1.24 $28,520.00 $3.19 $73,370.00 $2.80 $64,400.00 $2.65 $60,950.00 $2.54 $58,420.00 $2.69 $61,870.00 $2.77 $63,802.00 6 25700 LF Remove Existing Excess A.C. Pavement to Maintain 3/8” Gutter Lip $3.07 $78,796.20 $2.00 $51,400.00 $0.55 $14,135.00 $1.66 $42,662.00 $1.85 $47,545.00 $0.70 $17,990.00 $1.35 $34,746.40 Bid total: $400,068.28 $375,830.00 $273,759.00 $299,518.00 $381,165.00 $306,780.00 $327,410.40 Base Bid
All American Asphalt Copp Contracting
Bid Opening: July 11, 2024 - 2:00 P.M.
23-24 ANNUAL SLURRY SEAL PROJECT
Project No. 510 - Bid No. 2024-09

BID SUMMARY
Engineer's Estimate American Asphalt South Roy Allan Slurry Seal Pavement Coatings Average

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CONTRACT

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CONTRACT

CITY OF BUENA PARK CONTRACT FOR
2023-2024 ANNUAL SLURRY SEAL PROJECT
“Project”

Project Number: 505
Bid Number: 2024-09

This CONTRACT (“Contract”) is made and entered this 13th day of August, 20 24 (“Effective Date”), by and between the CITY OF BUENA PARK, a California municipal corporation (“City”) and Roy Allan Slurry Seal, Inc., a Corporation (“Contractor”). Contractor’s California State Contractor’s license number is #372798. The Contractor and the City are sometimes referred to herein collectively as the “Parties” and singularly as “Party.” In consideration of the mutual covenants hereinafter set forth, the parties hereto agree as follows:

1. Contract Documents. The Contract Documents consist of the following, each of which are attached hereto and incorporated herein by this reference:

A. This Contract;
B. The Notice Inviting Bids for the above-referenced project (“Project”), dated 5/13/2024;
C. The Instructions to Bidders for the Project, dated 5/13/2024; D. Contractor’s Bid for the Project, dated 7/11/2024 (including documentation accompanying the Bid and any post -Bid documentation submitted before the Notice of Award);
E. The Contractor’s Bonds for the Bid and the Project; F. The final working drawings, plans, and specifications for the Project as approved by the City, and dated 5/8/2024 (“Plans and Specifications”).

G. The City of Buena Park’s Standard Specifications for Public Works Projects, Latest Edition;
H. The City of Buena Park’s Special Provisions for Public Works Projects, Latest Edition;
I. Any and all permits from regulatory agencies with jurisdiction issued for the Project; and
J. Any addenda or change orders for the Project approved by the City subsequent to the Effective Date of this Contract.

2. Scope of Services. Contractor shall perform all Work necessary to complete, in a good and workmanlike manner, a public works project identified in the title of this Contract above (the “Project”), as such Project and the Work to be performed by Contractor is further are described in the Contract Documents.

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3. Compensation. In consideration for Contractor’s performance of the Work required to complete the Project hereunder, City shall pay Contractor a total NOT-TO-EXCEED amount of two hundred seventy -three thousand seven hundred fifty -nine dollar s and zero cents ($273,759.00) in accordance with the prices as submitted in the Bid (“Compensation”). The Compensation shall be the total a nd complete such payable by the City for any and all costs, direct or indirect, of the Contractor for provision of the Work and completion of the Project, including but not limited to general and supplementary conditions, performance and payment bonds, Contractor fee for construction, and Contractor overhead and profit, and any other items of costs, accounting, or expense relating to or arising therefrom. Compensation shall under no circumstances be increased except via a formal change order approved by the City; and only if such overruns result of additional scope from the City, as opposed to price overruns, delays, errors, or omissions.

4. Term of Contract: The Contractor agrees to complete the work to City’s satisfaction within THIRTY (30) WORKING DAYS from the date of written notice to proceed. The Contractor further agrees to the assessment of liquidated damages in the amount of FIVE HUNDRED DOLLARS ($500) for each calendar day the work remains incomplete beyond the expiration of the completion date. The City may deduct the amount thereof from any monies due or that may become due the Contractor under this Contract.

5. Incorporation by Reference . All of the following documents are attached hereto and incorporated herein by this reference: Workers’ Compensation Certificate of Insurance, Additional Insured Endorsement (Comprehensive General Liability), Additional Insured Endorsement (Automobile Liability), and Additional Insured Endorsement (Excess Liability).

6. Insurance: The Contractor shall not c ommence work under this Contract until it has obtained all insurance required hereunder in a company or companies acceptable to City nor shall the Contractor allow any subcontractor to commence work on a subcontract until all insurance required of its subcontractor has been obtained. The Contractor shall take out and maintain at all times during the life of this contract the following policies of insurance:

A. Compensation Insurance.

1. Before beginning work, the Contractor shall furnish to the City a certifi cate of insurance as proof that it has taken out full compensation insurance for all persons whom the Contractor may employ directly or through subcontractors in carrying out the work specified herein, in accordance with the laws of the State of California. Such insurance shall be maintained in full force and effect during the period covered by this Contract. Further such policy of insurance shall provide that the insurer waives all rights of subrogation against City and its elected officials, officers, e mployees, volunteers, and agents.

2. In accordance with the provisions of Section 3700 of the California Labor Code, every Contractor shall secure the payment of compensation to his employees.

Contractor, prior to commencing work, shall sign and file with t he City, a certification as follows:
“I am aware of the provisions of Section 3700 of the 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 I will comply with such

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provisions before commencing the performance of the work of this contract.”

B. General Insurance Requirements

1. Types of Coverage. Contractor shall maintain the following insurance coverage throughout the term of t his Contract, and upon request Contractor shall show City evidence of such coverage, which may include visual inspection of all policies, copies of declarations page, endorsements signed by an authorized representative of the underwriting company, or certi ficates of insurance. Insurance coverage shall be provided in the following form:
a. Insurance Services Office Commercial General Liability coverage occurrence form number CG 00 01 11 85 or 88.
b. Automobile Liability insurance with coverage at least as broad a s Insurance Services Office Form Number CA 0001 06 92 covering “Any Auto” (Symbol 1).
c. Workers Compensation insurance as required by the State of California and Employer's Liability insurance.

2. Minimum Limits of Insurance. Contractor shall maintain insurance coverage limits no less than:
a. General Liability: $2,000,000 per occurrence for bodily injury, personal injury, and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit, and shall contain specified language creating a duty to defend against any suit seeking damages. b. Automobile Liability: $ 1,000,000 per accident for bodily injury and property damage.
c. Employer's Liability: $1,000,000 per accident for bodily injury or disease.

C. Deductibles and Self -Insured Retentions. Any deductibles and/or self -insured retentions must be declared to and approved by the City. At the option of the City, either:
the insurer shall reduce or eliminate such deductibles or self -insured retentions as respects the City, its officers, elected officials, employees, agents, and volunteers; or, the Contractor shall pr ovide a financial guarantee satisfactory to the City, guaranteeing payment of losses and related investigations, claim administration and defense expenses.

D. Other Insurance Provisions. The Contractor and City further agree as follows:

1. All insurance coverage and limits provided pursuant to this Contract shall apply to the full extent of the policies involved, available or applicable. Nothing contained in this Contract or any other agreement relating to the City or its operations limits the application of such insurance coverage. Nothing contained in this Section is to be construed as affecting or altering the legal status of the parties to this Contract.

2. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only and is not intended by any

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party to be all inclusive, or to the exclusion of other coverage, or a waiver of any type.

3. For any claims related to this Project, the Contractor's insurance coverage shall be primary to any other similar insurance. Any insurance or self-insurance maintained by th e City, its officers, employees or volunteers, shall be excess of the Contractor's insurance and shall not contribute with it.

4. The City, its officers, elected officials, employees, agents, and volunteers are to be covered as additional insureds with respect to liability arising out of automobiles owned, leased, hired or borrowed by or on behalf of the Contractor and with respect to liability arising out of work or operations performed by or on behalf of the Contractor including materials, parts or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the Contractor's insurance, or as a separate owner's policy.

5. For purposes of insurance coverage only, this Con tract will be deemed to have been executed immediately upon any party hereto taking any steps that can be deemed to be in furtherance of or towards, performance of this Contract.

6. All general or auto liability insurance coverage provided pursuant to this Contract, or any other agreements pertaining to the performance of this Contract, shall not prohibit Contractor, and Contractor's employees, or agents, from waiving the right of subrogation prior to a loss. Contractor waives its right of subrogation ag ainst City.

7. In the event any policy of insurance required under this Contract does not comply with these requirements or is canceled and not replaced, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Contractor.

8. Contractor shall provide proof that policies of insurance required herein expiring during the term of this Contract have been renewed or replaced with other policies providing at least the same coverage. Such proof will be furnished within 72 hours of the expiration of the coverages.

9. Any actual or alleged failure on the part of City or any other additional insured under these requirements to obtain proof of insurance required under this Contract in no way waives any right or remedy of City or any additional insured, in this or any other regard.

10. All insurance coverage shall contain a provision that prohibits cancellation, modification or lapse without thirty (30) days' prior written notice from insurer to the City. Contractor agrees to require its insurer to modify the certificates of insurance to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation, and to delete the wo rd "endeavor" with regard to any notice provisions.

11 All insurance coverage shall include a severability of interests clause substantially similar to the following: "The insurance afforded by this policy applies separately to each insured against wh om a claim or suit is made or suit is brought, except with respect to the limit of the insurer's liability."

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12. All insurance coverage shall contain a clause substantially in the following words:
"It is hereby understood and agreed that this policy sh all not be canceled nor materially changed except upon thirty (30) days' prior written notice to the City of Buena Park of such cancellation or material change as evidence by a return receipt for a registered letter."

13. All insurance coverage shall cover the operations of the Contractor pursuant to the terms of this Contract.

14. Contractor agrees to provide immediate notice to City of any claim or loss against Contractor that includes City as a defendant. City assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve City.

15. In the event of any loss that is not insured due to the failure of Contractor to comply with these requirements, C ontractor agrees to be personally responsible for any and all losses, claims, suits, damages, defense obligations and liability of any kind attributed to City, or City's employees, or any of the additional insureds as a result of such failure.

16. Coverag e will not be limited to the specific location or individual or entity designated as the address of the Project.

17. Contractor agrees not to attempt to avoid its defense and indemnity obligations to City and its employees, agents, officials and servants by using as a defense Contractor's statutory immunity under workers' compensation and similar statutes.

18. Contractor agrees to require all parties or subcontractors, including architects or others, with which it enters into contracts or hires pursuant to or related in any way with the performance of this Contract, to provide insurance covering the operations contracted for and naming as additional insureds all parties to this Contract.

Contractor agrees to monitor and review all such coverage and assume s all responsibility for ensuring that such coverage is provided as required here.

Contractor agrees that no contract, standard form or otherwise, used by any party in any way connected with this Contract, or contracts Contractor enters into on behalf of City, will reserve the right to charge back to City the cost of insurance required by this or any other agreement.

E. Acceptability of Insurers . Coverage shall be written by insurers with a current A.M.

Best's rating of no less than "A:VIII," and be admitted to conduct business in the State of California by the Department of Insurance.

F. Verification of Coverage . Contractor shall furnish the City with evidence of the insurance required by this Section, satisfactory to City, consisting of original certificates of insurance and amendatory endorsements, and an additional insured endorsement at least as broad as Insurance Services Office form CG 20 10 11 85. The endorsements should be on forms provided by the City or on other than the City's forms or a separate owner’s policy, provided those forms or policies are approved by the City, and amended to conform to the City's requirements. All certificates and endorsements are to be received and approved by the City before work commences. The City reserve s the right to require complete, certified copies of all required insurance policies, including endorsements effecting the coverage required by these specifications at any time. Contractor agrees to provide complete certified copies of policies to City within 10 days of City's request for said

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copies.

G. Subcontractors. Contractor shall include all subcontractors or any other party involved in the Project by Contractor as insured under its policies or shall require subcontractors or any other party invol ved in the Project by Contractor to carry the same insurance as required herein. Contractor agrees to obtain certificates evidencing such coverage and make reasonable efforts to ensure that such coverage is provided as required here.

Contractor agrees to require that no contract used by any subcontractor, or contracts Contractor enters into on behalf of City, will reserve the right to charge back to City the cost of insurance required by this Contract. Contractor agrees that upon request, all agreements with subcontractors or others with whom Contractor contracts with on behalf of City and all certificates of insurance obtained in compliance with this paragraph will be submitted to City or review. Failure of City to request copies of such documents will not impose and liability on City, or its employees.

7. Indemnitifcation.

A. Contractor and City agree that City, its employees, officers, agents and elected officials should, to the extent permitted by law, be fully protected from any loss, injury, da mage, claim, lawsuit, cost, expense, attorneys fees, litigation costs, defense costs, court costs or any other cost arising out of or in any way related to the performance of this Contract.

Contractor acknowledges that CITY would not have entered into thi s Contract in the absence of the commitment of Contractor to indemnify and protect City as set forth here.

B. To the full est extent permitted by law, Contractor shall defend, indemnify and hold harmless City, its elected officials, employees, agents , volu nteers and offic ers (“Indemnitees”), from any and all liabilities, claims, suits, actions, arbitration proceedings, administrative proceedings, stop notices, regulatory proceedings, losses, expenses or costs of any kind, actual attorneys fees incurred by City, court costs, interest, defense costs including expert witness fees and any other costs or expenses of any kind whatsoever without restriction or limitation incurred in relation to, as a consequence of, arising out of or in any way attributable actually, allegedly or impliedly, in whole or in part to the Contractor’s performance of this Contract. All obligations under this provision are to be paid by Contractor as they are incurred by the City.

C. Without affecting the rights of City under any provision of this Contract or this section, Contractor shall not be required to indemnify and hold harmless City as set forth above for liability attributable to the sole fault of City, provided such fault is determined by agreement between the parties or the fin dings of a court of competent jurisdiction. This exception will apply only in instances where the City is shown to have been solely at fault and not in instances where Contractor is solely or partially at fault or in instances where City 's fault accounts for only a percentage of the liability involved. In those instances, the obligation of Contractor will be all -inclusive and City will be indemnified for all liability incurred, even though a percentage of the liability is attributable to the conduct of the City.

D. Contractor acknowledges that its obligation pursuant to this section extends to liability attributable to City, if that liability is other than the sole fault of City. Contractor has no obligation under this Contract for liability proven in a court of competent jurisdiction or by written agreement between the parties to be the sole fault of City.

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The Contractor’s indemnity obligation set forth in this section shall not be limited by the limits of any policies of insurance required or provided by the Contractor pursuant to this Contract.

8. Antitrust Claims. In entering into this Contract, 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 (Business and Professions Code Section 16700 et seq.) arising from purchases of goods, services, or materials pursuant to the Contract.

This assignment shall be made and become effective at the time City tenders final payment to Contractor without further acknowledgment by the parties.

9. Prevailing Wages. City and Contractor acknowledge that th e Project is a public work to which prevailing wages apply.

10. Community Workforce Agreement. The City and contractor acknowledge that the project is covered by a Community Workforce Agreement between the City and the Los Angeles/Orange Counties Building and Construction Trades Council and the Signatory Craft Councils and Local Unions (the “CWA”). Contractor agrees to abide by the terms and conditions of the CWA.

11. Titles. The titles used in this Contract are for convenience only and shall in no way define, limit or describe the scope or intent of this Contract or any part of it.

12. Authority. Any person executing this Contract on behalf of Contractor warrants and represents that he or she has the power and authority to execute this Contract on behalf of Contractor and has the power and authority to bind Contractor to the performance of its obligations hereunder.

13. Entire Agreement; Modification. This Contract, including the Contract Documents and any other documents incorporated herein by specific reference, represents the entire and integrated agreement between City and Contractor. Each Party to this Contract acknowledges that no representations, inducements, promises, or agreements, oral or otherwise, have been made by any Party, or anyone acting on behalf of any Party, which are not embodied herein. This Contract supersedes all prior oral or written negotiations, representations or agreements. This Contract may not be modified or amended, nor any provision or breach waived, except in a writing signed by both parties that expressly refers to this Contract.

14. Exhibits; Precedence. All doc uments referenced as exhibits in this Contract are hereby incorporated into this Contract by this reference. In the event of any inconsistency between the express provisions of this Contract and any provision of an exhibit, the provisions of this Contract, then the City’s invitation for bids, if any, shall prevail.

15. Counterparts. This Contract may be executed in counterpart originals, duplicate originals, or both, each of which is deemed to be an original for all purposes.

IN WITNESS WHEREOF, the parties hereto have executed the Contract the day and year first above written.

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CITY OF BUENA PARK

By:

City Manager

ATTEST: APPROVED AS TO FORM:

By: By:

City Clerk City Attorney

Dated:
(“CONTRACTOR”)

By:

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Bond No. __________

PAYMENT BOND
(LABOR AND MATERIALS)
KNOW ALL PERSONS BY THESE PRESENTS that:

WHEREAS the City of Buena Park (“Public Agency”), State of California, has awarded to

(“Principal”)
(Name and address of Contractor)
a contract (the “Contract”) for the Work described as follows:

2023-2024 ANNUAL SLURRY SEAL PROJECT
(Project Name)

WHEREAS, under the terms of the Contract, the Principal is required before entering upon the performance of the Work, to file a good and sufficient payment Bond with the Public Agency to secure the claims to which reference is made in Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code.

NOW, THEREFORE, we, the undersigned Principal, and

(Name and address of Surety)
(“Surety”) a duly admitted surety insurer under the laws of the State of California, as Surety, are held and firmly bound unto the Public Agency and all contractors, subcontractors, laborers, material suppliers, and other persons employed in the performance of the Contract and referred to in Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code in the penal sum of
Dollars ($ ), and not less than 100% of total contract amount.

Lawful money of the United States of America, for materials f urnished or labor thereon of any kind, or for amounts due under the Unemployment Insurance Act with respect to this Work or labor, that the Surety will pay the same in an amount not exceeding the amount hereinabove set forth, and also in case suit is broug ht upon this Bond, will pay, in addition to the face amount thereof, costs and reasonable expenses and fees, including reasonable attorneys’ fees, incurred by Public Agency in successfully enforcing this obligation, to be awarded and fixed by the court, and to be taxed as costs and to be included in the judgment therein rendered.

It is hereby expressly stipulated and agreed that this Bond shall inure to the benefit of any and all persons, companies, and corporations entitled to file claims under Title 3 (co mmencing with Section 9000) of Part 6 of Division 4 of the Civil Code, so as to give a right of action to them or their assigns in any suit brought upon this Bond.

Upon expiration of the time within which the California Labor Commissioner may serve a civil wage and penalty assessment against the principal, any of its subcontractors, or both the principal and its subcontractors pursuant to Labor Code Section 1741, and upon expiration of the time within which a joint labor management committee may commence an action against the principal, any of its subcontractors, or both the principal and its subcontractors pursuant to Labor Code

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Section 1771.2, if the condition of this Bond be fully performed, then this obligation shall become null and void; otherwise, it shall be and remain in full force and effect.

The Surety hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of the Contract or the plans and Specifications accompanying the same shall in any manner affect its obligations on this Bond, and it does hereby waive notice of any such change, extension, alteration, or addition.

IN WITNESS WHEREOF, two (2) identical counterparts of this instrument, each of which shall for all purposes be deemed an original hereof, have been duly executed by Principal and Surety, on the date set forth below, the name of each corporate party being hereto affixed and these presents duly signed by its undersigned representative(s) pursuant to authority of its governing body.

Dated:

“Principal”

By:

Its

By:

Its

(Seal)

“Surety”

By:

Its

By:

Its

(Seal)

Note: This Bond must be executed in duplicate and dated, all signatures must be notarized, and eviden ce of the authority of any person signing as attorney-in-fact must be attached. DATE OF BOND MUST NOT BE BEFORE DATE OF CONTRACT. Surety companies executing Bonds must appear on the Treasury Department’s most current list (Circular 570 as amended) and be authorized to transact business in the State where the project is located.

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Bond No. __________

FAITHFUL PERFORMANCE BOND
KNOW ALL PERSONS BY THESE PRESENTS that:

WHEREAS the City of Buena Park (“Public Agency”), has awarded to

(“Principal”)
(Name and address of Contractor)
a contract (the “Contract”) for the Work described as follows:
2023-2024 ANNUAL SLURRY SEAL PROJECT
(Project name)

which is hereby referred to and made a part hereof; and WHEREAS, Principal is required under the terms of the Contract to furnish a Bond for the faithful performance of the Contract.

NOW, THEREFORE, we, the undersigned Principal, and

,
(Name and address of Surety)
(“Surety”) a duly admitted surety insurer under the laws of the State of California, as Surety, are held and firmly bound unto the Public Agency in the penal sum of

Dollars ($ ), this amount being not less than
100% of the total Contract Price, in lawful money of the United States of America, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, successors executors and administrators, jointly and severally, firmly by these presents.

THE CONDITION OF THIS OBLIGATION IS SUCH THAT, if the hereby bounded Principal, his, her or its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and wel l and truly keep and perform the covenants, conditions and provisions in the Contract and any alteration thereof made as therein provided, on the Principal ’s part, to be kept and performed at the time and in the manner therein specified, and in all respect s according to their true intent and meaning, and shall indemnify and save harmless the Publ ic Agency, its officers, agents and employees, as therein stipulated, then this obligation shall become null and void; otherwise, it shall be and remain in full force and effect.

As a part of the obligation secured hereby and in addition to the face amount specified therefor, there shall be included costs and reasonable expenses and fees, including reasonable attorneys’ fees, incurred by Public Agency in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered. Surety hereby waives any statute of limitations as it applies to an action on this Bond.

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this Bond, and it does hereby waive notic e of any such change, extension of time, alteration or addition to the terms of the Contract or to the Work or to the specifications. Surety hereby waives the pro visions of California Civil Code Sections 2845 and 2849. The City is the principal beneficiary of this Bond and has all rights of a party hereto.

Dated:

“Principal”

By:

Its

By:

Its

(Seal)

“Surety”

By:

Its

By:

Its

(Seal)

Note: This Bond must be executed in duplicate and dated, all signatures must be notarized, and evidence of the authority of any person signing as attorney -in-fact must be attached. DATE OF BOND MUST NOT BE BEFORE DATE OF CONTRACT. Surety companies executing Bonds must appear on the Treasury Department’s most current list (Circular 570 as amended) and be authorized to transact business in the State where the project is located.

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WORKERS’ COMPENSATION

CERTIFICATE OF INSURANCE
WHEREAS, the City of Buena Park (“City”) has required certain insurance to be provided by:

NOW THEREFORE, the undersigned insurance company does hereby certify that it has issued the policy or policies described below to the following named insureds and that the same are in force at this time:

1. This certificate is issued to:

City of Buena Park
City Hall
6650 Beach Boulevard
Buena Park, CA 90621
The insureds under such policy or policies are:

2. Workers’ Compensation Policy or Policies in a form approved by the Insurance Commissioner of California covering all operations of the named insureds as follows:

Policy Number Effective Date Expiration Date

By:

Its Authorized Representative

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PROGRESS PAYMENT SIGNATURE AUTHENTICATION

All company billings submitted for payment shall have the signature of an official of the company authorized to sign a bill and/or collect a check from the City, either on the invoice or an attached cover letter.

The following personnel of _______________________________________________________ ____________________________________________________________________________ (Contractor)
are authorized to sign bills and/or receive checks.

NAME TITLE SIGNATURE

Any subsequent changes to supersede this signature list must be requested in writing and accompanied by a
facsimile of this form to be complete in its entirety.

By: ________________________________________________
(name and title)

For: _______________________________________________
(Bidder)

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ADDITIONAL INSURED ENDORSEMENT

COMPREHENSIVE GENERAL LIABILITY

Name and address of named insured (“Named Insured”):

Name and address of insurance company (“Company”):

General description of agreement(s), permit(s), license(s), and/or activity(ies) insured:

Notwithstanding any inconsistent statement in the policy to which this endorsement is attached (the “Policy”) or in any endorsement now or hereafter attached thereto, it is agreed as follows:

1. The City of Buena Park (“Public Agency”), its elected officials, officers, attorneys, agents, employees, and volunteers are additional insureds (the above named additional insureds are hereafter referred to as the “Additional Insureds”) under the Policy in relation to those activities described generally above with regard to operations performed by or on behalf of the Named Insured. The Additional Insureds have no liability for the payment of any premiums or assessments under the Policy.

2. The insurance coverages afforded the Additional Insureds under the Policy shall be primary insurance, and no other insurance maintained by the Additional Insureds shall be called upon to contribute with the insurance coverages provided by the Policy.

3. Each insurance coverage under the Policy shall apply separately to each Additional Insured against whom claim is made or suit is brought except with respect to the limits of the Company’s liability.

4. Nothing in this contract of insurance shall be construed to preclude coverage of a claim by one insured under the policy against another insured under the policy. All such claims shall be covered as third-party claims, i.e., in the same manner as if separate policies had been issued to each insured. Nothing contained in this provision shall operate to increase or replicate the Company’s limits of liability as provided under the policy.

5. The insurance afforded by the Policy for contractual liability insurance (subject to the terms, conditions and exclusions applicable to such insurance) includes liability assumed by the Named Insured under the indemnification and/or hold harmless provision(s) contained in or executed in conjunction with the written agreement(s) or permit(s) designate d above, between the Named Insured and the Additional Insureds.

6. The policy to which this endorsement is attached shall not be subject to cancellation, change in coverage, reduction of limits (except as the result of the payment of claims), or non - renewal except after written notice to Public Agency, by certified mail, return receipt requested, not less than thirty (30) Days before the effective date thereof. In the event of Company ’s failure to comply with this notice provision, the policy as initially drafted will continue in full force and effect until compliance with this notice requirement.

C-16

above with regard to operations performed by or on behalf of the Named Insured regardless of any prior, concurrent, or subsequent active or passive negligence by the Additional Insureds.

8. It is hereby agreed that the laws of the State of California shall apply to and govern the validity, construction, interpretation, and enforcement of this contract of insurance.

9. This endorsement and all notices given hereunder shall be sent to Public Agency at:

City Manager
City of Buena Park
City Hall
6650 Beach Boulevard
Buena Park, CA 90621

10. Except as stated above and not in conflict with this endorsement, nothing contained herein shall be held to waive, alter or extend any of the limits, agreements, or exclusions of the policy to which this endorsement is attached.

TYPE OF COVERAGES TO WHICH THIS

ENDORSEMENT ATTACHES

POLICY PERIOD

FROM/TO

LIMITS OF

LIABILITY

11. Scheduled items or locations are to be identified on an attached sheet. The following inclusions relate to the above coverages. Includes:
□ Contractual Liability □ Explosion Hazard
□ Owners/Landlords/Tenants □ Collapse Hazard
□ Manufacturers/Contractors □ Underground Property Damage □ Products/Completed Operations □ Pollution Liability □ Broad Form Property Damage □ Liquor Liability
□ Extended Bodily Injury □
□ Broad Form Comprehensive □
General Liability Endorsement □

12. A □ deductible or □ self-insured retention (check one) of $ applies to all coverage(s) except:
if none, so state) . The deductible is applicable □ per claim or □ per occurrence (check one).

13. This is an □ occurrence or □ claims made policy (check one).

14. This endorsement is effective on at 12:01 a.m. and forms a part of Policy Number .

I, (print name), hereby declare under penalty of perjury under the laws of the State of California, that I have the authority to bind the Co mpany to this endorsement and that by my execution hereof, I do so bind the Company.

Executed , 20

Signature of Authorized Representative
(Original signature only; no facsimile signature
Telephone No.: ( ) or initialed signature accepted)

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ADDITIONAL INSURED ENDORSEMENT

AUTOMOBILE LIABILITY

Name and address of named insured (“Named Insured”):

Name and address of insurance company (“Company”):

General description of agreement(s), permit(s), license(s), and/or activity(ies) insured:

Notwithstanding any inconsistent statement in the policy to which this endorsement is attached (the “Policy”) or in any endorsement now or hereafter attached thereto, it is agreed as follows:

5. The insurance afforded by the Policy for contractual liability insurance (subject to the terms, conditions and exclusions applicable to such insurance) includes liability assumed by the Named Insured under the indemnification and/or hold harmless provision(s) contained or executed in conjunction with the written agreement(s) or permit(s) designated above, between th e Named Insured and the Additional Insureds.

6. The policy to which this endorsement is attached shall not be subject to cancellation, change in coverage, reduction of limits (except as the result of the payment of claims), or non -renewal except after writ ten notice to Public Agency, by certified mail, return receipt requested, not less than thirty (30) Days before the effective date thereto. In the event of Company ’s failure to comply with this notice provision, the policy as initially drafted will contin ue in full force and effect until compliance with this notice requirement.

7. Company hereby waives all rights of subrogation and contribution against the Additional Insureds, while acting within the scope of their duties, from all claims, losses and liabilities arising out of or incident to the perils insured against in relation to those activities described generally above with regard to operations performed by or on behalf of the Named Insured regardless of any prior, concurrent, or subsequent active or passive negligence by the Additional Insureds.

C-18

8. It is hereby agreed that the laws of the State of California shall apply to and govern the validity, construction, interpretation, and enforcement of this contract of insurance.

9. This endorsement and all notices given hereunder shall be sent to Public Agency at:

City Manager
City of Buena Park
City Hall
6650 Beach Boulevard
Buena Park, CA 90621

TYPE OF COVERAGES TO WHICH THIS

ENDORSEMENT ATTACHES

POLICY PERIOD

FROM/TO

LIMITS OF

LIABILITY

11. Scheduled ite ms or locations are to be identified on an attached sheet. The following inclusions relate to the above coverages. Includes:
□ Any Automobiles □ Truckers Coverage
□ All Owned Automobiles □ Motor Carrier Act
□ Non-owned Automobiles □ Bus Regulatory Reform Act
□ Hired Automobiles □ Public Livery Coverage
□ Scheduled Automobiles □
□ Garage Coverage □

12. A □ deductible or □ self-insured retention (check one) of $ applies to all coverage(s) except: (if none, so state) . The deductible is applicable □ per claim or □ per occurrence (check one).

13. This is an □ occurrence or □ claims made policy (check one).

14. This endorsement is effective on ______________ at 12:01 a.m. and forms a part of Policy Number _________.

I, (print name), hereby declare under penalty of perjury under the laws of the State of California, that I have the authority to bind the Compan y to this endorsement and that by my execution hereof, I do so bind the Company.

Executed , 20

Signature of Authorized Representative
(Original signature only; no facsimile signature
Telephone No.: ( ) or initialed signature accepted)

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ADDITIONAL INSURED ENDORSEMENT

EXCESS LIABILITY

Name and address of named insured (“Named Insured”):

Name and address of insurance company (“Company”):

General description of agreement(s), permit(s), license(s), and/or activity(ies) insured:

Notwithstanding any inconsistent statement in the policy to which this endorsement is attached (the “Policy”) or in any endorsement now or hereafter attached thereto, it is agreed as follows:

1. The City of Buena Park(“Public Agency”), its elected officials, officers, attorneys, agents, employees, and volunteers are additional insureds (the above named additional insureds are hereafter referred to as the “Additional Insureds”) under the Policy in relation to those activities described generally above with regard to operations performed by or on behalf of the Named Insured. The Additional Insureds have no liability for the payment of any premiums or assessments under the Policy.

3. Each insurance coverage under the Policy shall apply separately to each Additional Insured against whom claim is made or suit is brought, except with respect to the limits of the Company ’s liability.

5. The insurance afforded by the Policy for contractual liability insurance (subject to the terms, conditions and exclusions applicable to such insurance) includes liability assumed by the Named Insured under the indemnification and/or hold harmless provision(s) contained in or executed in conjunction with the written agreement(s) or permit(s) designated above, between the N amed Insured and the Additional Insureds.

6. The policy to which this endorsement is attached shall not be subject to cancellation, change in coverage, reduction of limits (except as the result of the payment of claims), or non -renewal except after written notice to Public Agency, by certified mail, return receipt requested, not less than thirty (30) Days before the effective date thereto. In the event of Company ’s failure to comply with this notice provision, the policy as initially drafted will continue in full force and effect until compliance with this notice requirement.

C-20

regard to operations performed by or on behalf of the Named Insured regardless of any prior, concurrent, or subsequent active or passive negligence by the Additional Insureds.

8. It is hereby agreed that the laws of the State of California shall apply to and govern the validity, construction, interpretation, and enforcement of this contract of insurance.

9. This endorsement and all notices given hereunder shall be sent to Public Agency at:

City Manager
City of Buena Park
City Hall
6650 Beach Boulevard
Buena Park, CA 90621

TYPE OF COVERAGES TO WHICH THIS

ENDORSEMENT ATTACHES

POLICY PERIOD

FROM/TO

LIMITS OF

LIABILITY

□ Following Form
□ Umbrella Liability
□

11. Applicable underlying coverages:

INSURANCE COMPANY POLICY NUMBER AMOUNT

12. The following inclusions, exclusions, extensions or specific provisions relate to the above coverages:

13. A □ deductible or □ self-insured retention (check one) of $ applies to all coverage(s) except:
(if none, so state) . The deductible is applicable □ per claim or □ per occurrence (check one).

14. This is an □ occurrence or □ claims made policy (check one).

15. This endorsement is effective on ________ at 12:01 a.m. and forms a part of Policy Number ________.

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I, (print name) , hereby declare under penalty of perjury under the laws of the State of California, that I have the authority to bind the Company to this endorsement and that by my execution hereof, I do so bind the Company.

Executed , 20

Signature of Authorized Representative
(Original signature only; no facsimile signature
Telephone No.: ( ) or initialed signature accepted)

City of Buena Park
City Council Regular Meeting Agenda Report

RESOLUTION APPROVING PLANS, SPECIFICATIONS AND APPROVAL OF A CONTRACT WITH HARDY & HARPER, INC. FOR THE LOS COYOTES DRIVE STREET IMPROVEMENT PROJECT Meeting
Tuesday, August 13, 2024, 5:00 PM
Agenda Group
NEW BUSINESS Item: 5B
Presented By
Norm Wray, Senior Engineering Technician
Prepared By
Mina Mikhael, Director of Public Works/City Engineer
Approved By
Aaron France, City Manager

RECOMMENDED ACTION
1) Adopt a resolution approving the plans and speciﬁcations for the Los Coyotes Drive Street Improvement Project; 2) Award a contract to Hardy & Harper, Inc. in the amount of $650,000; 3) Authorize contingency funds in the amount of $65,000 in the same purchase order; 4) Authorize construction engineering in the amount of $46,000; 5) Authorize a purchase order for The Solis Group in the amount of $6,000 for administration of the Community Workforce Agreement (CWA); 6) Authorize contingency funds in the amount of $3,000 for the CWA administration); 8) Authorize the City Manager and City Attorney to make any necessary, non-monetary changes to the contract; 9) Authorize the City Manager and City Clerk to execute the contract; and 10) Authorize a budget transfer of $101,000 from the Caballero Rehabilitation Project Account.

PREVIOUS CITY COUNCIL ACTION
None.

DISCUSSION
Cities undertake pavement rehabilitation projects to ensure the safety, functionality, and longevity of their road infrastructure. These projects address issues such as cracks, potholes, and surface wear, preventing them from worsening and reducing the need for costly emergency repairs. Rehabilitation of Los Coyotes Drive is a part of the City’s annual Capital Improvement Program (CIP) for the FY 2023-2024.

The Los Coyotes Drive Street Improvement Project will include removing and replacing street pavement, sidewalks, curbs and gutters, cross gutters, new striping, and installing a cape seal on Los Coyotes Drive from Beach Boulevard to Country Club Drive. The project also includes adjusting existing utility covers to accommodate new street grades.

This project was advertised for competitive bids on July 11, 2024. Four bids were received and publicly opened on August 1, 2024. Bid amounts ranged from $650,000 to $992,000. The Engineer's estimate was $850,000. The lowest, responsible bid was submitted by Hardy & Harper, Inc. of Lake Forest, CA in the amount of $650,000. This contractor possesses the required license and has completed other paving projects for the City. Staff recommends awarding a contract to Hardy & Harper, Inc. and approving contingency funds in the amount of $65,000.

Construction is scheduled to begin in September 2024, and be completed in October 2024. The CWA agreement will apply to this project based on the total contract cost.

BUDGET IMPACT
This project is funded in the FY 2023-2024 CIP budget, and is funded by the Measure M2 Fund (Fairshare) and the Gas Tax Fund (Account No. 24-9806-590187).

Total costs for the project is in the amount of $770,000 and includes:

Construction Contract: $650,000
Construction Contingency: $65,000
Construction Engineering: $46,000
Community Workforce Agreement Administration: $6,000
Community Workforce Agreement Administration Contingency: $3,000 The Capital Improvement Project (CIP) budget for this item is $700,000. However, a portion of this budget was utilized for surveying and geotechnical studies related to the project design. The account has an available balance of $669,447. The total construction cost, with all contingencies, is $770,000. Therefore, the project account has insuﬃcient funds available for the construction phase of the project. Approximately $101,000 is needed to complete construction. This amount will be reallocated from the project savings in the Caballero Boulevard Pavement Rehabilitation project account (25-590186-9806) for this purpose.

Attachments
Award Los Coyotes Paving Att 1 of 7 - RESO.pdf
Award Los Coyotes Paving Att 2 of 7 - Location Map.pdf
Award Los Coyotes Paving Att 3 of 7 - Bid Results.pdf
Award Los Coyotes Paving Att 4 of 7 - Bid Summary.pdf
Award Los Coyotes Paving Att 5 of 7 - Contract.pdf
Award Los Coyotes Paving Att 6 of 7 - Los Coyotes Account.pdf Award Los Coyotes Paving Att 7 of 7 - Caballero Account.pdf

RESOLUTION NO. __________

A RESOLUTION OF THE CITY COUNCIL OF THE CI TY OF BUENA PARK APPR OVING

PLANS AND SPECIFICATIONS FOR THE LOS COYOTES DRIVE STREET IMPROVEMENT PROJECT IN SAID CITY.

WHEREAS, it is the intention of the City of Buena Park to construct certain improvements in the City; and
WHEREAS, the City Engineer has p repared specifications and plans for the construction of certain improvement(s).

NOW, THEREFORE, BE IT RESOLVED that the specifications and plans presented by the City be and are hereby approved as the specifications and plans for:

LOS COYOTES DRIVE STREET IMPROVEMENT PROJECT

PASSED AND ADOPTED this 13th day of August, 2024, by the following called vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS

_______________________________________
Mayor
ATTEST:

_______________________________________
City Clerk

CITY OF LA MIRADACITY OF BUENA PARKCITY OF LA MIRADACOUNTY OF ORANGE

BEACH BLVDLOS COYOTES DR

LOS COYOTES DR

ROSECRANS AVE

COUNTRY CLUB DR

LOS COYOTES DR
: INDICATES THE PROJECT AREA : INDICATES CITY LIMITS
Company Name Bid Amount
1 Hardy & Harper, Inc. $650,000.00
2 Onyx Paving Company $765,000.00
3 All American Asphalt $788,080.00
4 MBC Enterprises $991,397.00
City of Buena Park

BID RESULTS

LOS COYOTES DRIVE STREET IMPROVEMENT PROJECT
Project No. 506
Bid No. 2023-15
Bid Opening. 08/01/2024 - 2:00 P.M.

LOS COYOTES DRIVE STREET IMPROVEMENT PROJECT

BID SUMMARY
Bid Opening: August 1, 2024 - 2:00 P.M.

PAGE 1 OF 3
Item Approx. Unit Description Unit Total Unit Total Unit Total Unit Total Unit Total Unit Total No Quantity Price Amount Price Amount Price Amount Price Amount Price Amount Price Amount 1 1 LS MOBILIZATION $81,950.00 $81,950.00 $61,427.50 $61,427.50 $50,000.00 $50,000.00 $96,492.00 $96,492.00 $76,295.33 $76,295.33 $72,467.38 $72,467.38 2 1 LS

TRAFFIC CONTROL, TO INCLUDE ALL PLANS,

COMPUTERIZED MESSAGE SIGNS, DELINEATORS,

STEEL PLATES, AND ANY OTHER NEEDED SAFETY
DEVICES.
$100,000.00 $100,000.00 $169,000.00 $169,000.00 $55,000.00 $55,000.00 $80,840.00 $80,840.00 $130,000.00 $130,000.00 $101,210.00 $101,210.00 3 1 LS

STORM WATER POLLUTION PREVENTION PLAN
(SWPPP) AND BEST MANAGEMENT PRACTICES
(BMP’S)
$10,000.00 $10,000.00 $11,000.00 $11,000.00 $5,000.00 $5,000.00 $36,120.00 $36,120.00 $25,000.00 $25,000.00 $15,530.00 $15,530.00 4 1 LS
FURNISH AND INSTALL TWO (2) CONSTRUCTION

INFORMATION SIGNS, TRAFFIC STRIPING AND

MARKERS INCLUDING CURB MARKINGS
$30,000.00 $30,000.00 $40,000.00 $40,000.00 $40,000.00 $40,000.00 $93,224.00 $93,224.00 $30,000.00 $30,000.00 $50,806.00 $50,806.00 5 8,750 SF COLD MILL AND REMOVE 3” OF EXISTING AC
PAVEMENT $2.00 $17,500.00 $3.33 $29,137.50 $2.50 $21,875.00 $3.00 $26,250.00 $1.29 $11,287.50 $2.71 $23,690.63 6 170 TON
CONSTRUCT 3" AC SURFACE COURSE TYPE III C3
PG-70-10 (1/2" ROCK) WITH FORTA-FI FIBER

REINFORCEMENT OR APPROVED EQUAL
$250.00 $42,500.00 $222.00 $37,740.00 $250.00 $42,500.00 $427.00 $72,590.00 $183.50 $31,195.00 $287.25 $48,832.50 7 193,000 SF CONSTRUCT AR CAPE SEAL PER SPECIFICATIONS $0.85 $164,050.00 $0.92 $177,560.00 $1.35 $260,550.00 $1.10 $212,300.00 $1.64 $316,520.00 $1.06 $203,615.00 8 2,200 SF

REMOVE EXISTING CROSS GUTTER AND
CONSTRUCT NEW PER CITY OF BUENA PARK STD.

PLAN NO. 105
$38.00 $83,
600.00 $42.00 $92,400.00 $53. 00 $116,600.00 $74.00 $162,800.00 $39.44 $86,768.00 $51.75 $113,850.00 ONYX PAVING CO., INC. ENGINEER'S ESTIMATE AVERAGE HARDY & HARPER, INC. ALL AMERICAN ASPHALT MBC ENTERPRISES, INC.

LOS COYOTES DRIVE STREET IMPROVEMENT PROJECT

BID SUMMARY
Bid Opening: August 1, 2024 - 2:00 P.M.

PAGE 2 OF 3
Item Approx. Unit Description Unit Total Unit Total Unit Total Unit Total Unit Total Unit Total No Quantity Price Amount Price Amount Price Amount Price Amount Price Amount Price Amount ONYX PAVING CO., INC. ENGINEER'S ESTIMATE AVERAGE HARDY & HARPER, INC. ALL AMERICAN ASPHALT MBC ENTERPRISES, INC. 9 2 EA

REMOVE EXISTING AND CONSTRUCT NEW CURB
RAMP PER OCPW STD. PLAN 1115 NEW CURB

RAMP TO BE MONOLITHIC WITH NEW CROSS
GUTTER
$10,000.00 $20,000.00 $13,500.00 $27,000.00 $15,000.00 $30,000.00 $10,320.00 $20,640.00 $7,689.00 $15,378.00 $12,205.00 $24,410.00 10 195 LF

REMOVE EXISTING AND CONSTRUCT NEW CURB
AND GUTTER PER CITY OF BUENA PARK STD.

PLAN NO. 202, NEW CURB AND GUTTER TO BE

MONOLITHIC WITH NEW CROSS GUTTER
$100.00 $19,500.00 $123.00 $23,985.00 $75.00 $14,625.00 $215.00 $41,925.00 $196.75 $38,366.25 $128.25 $25,008.75 11 130 LF

REMOVE EXISTING AND CONSTRUCT NEW CURB
AND GUTTER PER CITY OF BUENA PARK STD.

PLAN NO. 202 AND MATCH GUTTER WIDTH TO

EXISTING
$100.00 $13,000.00 $123.00 $15,990.00 $101.00 $13,130.00 $224.00 $29,120.00 $195.00 $25,350.00 $137.00 $17,810.00 12 120 SF
REMOVE EXISTING AND CONSTRUCT NEW 4"

THICK PCC SIDEWALK PER CITY OF BUENA PARK
STD. PLAN NO. 208
$20.00 $2,400.00 $22.00 $2,640.00 $50.00 $6,000.00 $26.00 $3,120.00 $36.75 $4,410.00 $29.50 $3,540.00 13 1,200 SF
REMOVE A.C., A.B., AND SUBGRADE BEFORE
PAVING AND CONSTRUCT 9" THICK A.C.

PAVEMENT OVER COMPACTED BASE PER SHEET 4
DETAIL "A"
$25.00 $30,000.00 $30.00 $36,000.00 $45.00 $54,000.00 $35.00 $42,000.00 $13.38 $16,056.00 $33.75 $40,500.00 14 1 EA

REMOVE EXISTING CURB RAMP AND REPLACE
WITH NEW 4-INCH PCC SIDEWALK PER CITY OF
BUENA PARK STD. PLAN NO. 208 AND NEW CURB,

NEW CURB TO BE MONOLITHIC WITH NEW CROSS
GUTTER
$5,000.00 $5,000.00 $13,500.00 $13,500.00 $15,000.00 $15,000.00 $11,696.00 $11,696.00 $3,845.00 $3,845.00 $11,299.00 $11,299.00 15 9 EA ADJUST VALVE FRAME AND COVER TO GRADE
PER CITY OF BUENA PARK STD. PLAN 518 $1,500.00 $13,500.00 $1,100.00 $9,900.00 $1,000.00 $9,000.00 $3,096.00 $27,864.00 $1,477.50 $13,297.50 $1,674.00 $15,066.00 16 4 EA INSTALL LOOP DETECTOR COMPLETE PER PLANS $1,000.00 $4,000.00 $1,100.00 $4,400.00 $1,100.00 $4,400.00 $2,064.00 $8,256.00 $750.00 $3,000.00 $1,316.00 $5,264.00

LOS COYOTES DRIVE STREET IMPROVEMENT PROJECT

BID SUMMARY
Bid Opening: August 1, 2024 - 2:00 P.M.

PAGE 3 OF 3
Item Approx. Unit Description Unit Total Unit Total Unit Total Unit Total Unit Total Unit Total No Quantity Price Amount Price Amount Price Amount Price Amount Price Amount Price Amount ONYX PAVING CO., INC. ENGINEER'S ESTIMATE AVERAGE HARDY & HARPER, INC. ALL AMERICAN ASPHALT MBC ENTERPRISES, INC. 17 40 CY OPTIONAL – OVER EXCAVATION (UNSUITABLE
AREAS) $150.00 $6,000.00 $111.00 $4,440.00 $620.00 $24,800.00 $430.00 $17,200.00 $153.75 $6,150.00 $327.75 $13,110.00 18 40 TON OPTIONAL – ASPHALT CONCRETE BRIDGE MIX $175.00 $7,000.00 $222.00 $8,880.00 $640.00 $25,600.00 $224.00 $8,960.00 $158.25 $6,330.00 $315.25 $12,610.00 TOTAL = $650,000.00 $765,000.00 $788,080.00 $991,397.00 $839,248.58 $798,619.25

CONTRACT

C-1

CONTRACT

CITY OF BUENA PARK CONTRACT FOR

LOS COYOTES DRIVE STREET IMPROVEMENT PROJECT
“Project”

Project Number: 506
Bid Number: 2023-15

This CONTRACT (“Contract”) is made and entered this 13th day of August, 2024 (“Effective Date”), by and between the CITY OF BUENA PARK, a California municipal corporation (“City”) and HARDY & HARPER, INC., a CALIFORNIA CORPORATION (“Contractor”). Contractor’s California State Contractor’s license number is 215952. The Contractor and the City are sometimes referred to herein collectively as the “Parties” and singularly as “Party.

In consideration of the mutual covenants hereinafter set forth, the parties hereto agree as follows:

1. Contract Documents. The Contract Documents consist of the following, each of which are attached hereto and incorporated herein by this reference:

A. This Contract;
B. The Notice Inviting Bids for the above- referenced project (“Project”), dated July 11, 2024;
C. The Instructions to Bidders for the Project, dated July 11, 2024; D. Contractor’s Bid for the Project, dated July 25, 2024 (including documentation accompanying the Bid and any post-Bid documentation submitted before the Notice of Award);
E. The Contractor’s Bonds for the Bid and the Project;
F. The final working drawings, plans, and specifications for the Project as approved by the City, and dated July 11, 2024 (“Plans and Specifications”).

G. The City of Buena Park’s Standard Specifications for Public Works Projects, Latest Edition;
H. The City of Buena Park’s Special Provisions for Public Works Projects, Latest Edition; I. Any and all permits from regulatory agencies with jurisdi ction issued for the Project; and
J. Any addenda or change orders for the Project approved by the City subsequent to the Effective Date of this Contract.

C-2

3. Compensation. In consideration for Contractor’s performance of the Work required to complete the Project hereunder, City shall pay Contractor a total NOT-TO-EXCEED amount of Six Hundred and Fifty Thousand dollars ($650,000) in accordance with the prices as submitted in the Bid (“Compensation”). The Compensation shall be the total and complete such payable by the City for any and all costs, direct or indirect, of the Contractor for provision of the Work and completion of the Project, including but not limited to general and supplementary conditions, performance and payment bonds, Contractor fee for construction, and Contractor overhead and profit, and any other items of costs, accounting, or expense relating to or arising the refrom. Compensation shall under no circumstances be increased except via a formal change order approved by the City; and only if such overruns result of additional scope from the City, as opposed to price overruns, delays, errors, or omissions.

5. Incorporation by Reference. All of the following documents are attached hereto and incorporated herein by this reference: Workers’ Compensation Certificate of Insurance, Additional Insured Endorsement (Comprehensive General Liability), Additional Insured Endorsement (Automobile Liability), and Additional Insured Endorsement (Excess Liability).

6. Insurance: The Contractor shall not commence work under this Contract until it has obtained all insurance required hereunder in a company or companies acceptable to City nor shall the Contrac tor allow any subcontractor to commence work on a subcontract until all insurance required of its subcontractor has been obtained. The Contractor shall take out and maintain at all times during the life of this contract the following policies of insurance:

A. Compensation Insurance

Such insurance shall be maintained in full force and effect during the period covered by this Contract. Further such policy of insurance shall provide that the insurer waives all rights of subrogation against City and its elected officials, officers, employees, volunteers, and agents.

2. In accordance with the provisions of Section 3700 of the California Labor Code, every Contractor shall secure the payment of compensation to his employees.

Contractor, prior to commencing work, shall sign and file with the City, a certification as follows:

C-3

“I am aware of the provisions of Section 3700 of the 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 I will comply with such provisions before commencing the performance of the work of this contract.”

B. General Insurance Requirements

a. Insurance Services Office Commercial General Liability coverage occurrence form number CG 00 01 11 85 or 88.

b. Automobile Liability insurance with coverage at least as broad as Insurance Services Office Form Number CA 0001 06 92 covering “Any Auto” (Symbol 1).

c. Workers Compensation insurance as required by the State of California and Employer's Liability insurance.

2. Minimum Limits of Insurance. Contractor shall maintain insurance coverage limits no less than:

a. General Liability: $2,000,000 per occurrence for bodily injury, personal injury, and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit, and shal l contain specified language creating a duty to defend against any suit seeking damages.

b. Automobile Liability: $1,000,000 per accident for bodily injury and property damage.

c. Employer's Liability: $1,000,000 per accident for bodily injury or disease.

C. Deductibles and Self -Insured Retentions. Any deductibles and/or self insured retentions must be declared to and approved by the City. At the option of the City, either: the insurer shall reduce or eliminate such deductibles or self insured retentions as respects the City, its officers, elected officials, employees, agents, and volunteers; or, the Contractor shall provide a financial guarantee satisfactory to the City, guaranteeing payment of losses and related investigations, claim administration and defense expenses.

C-4

D. Other Insurance Provisions. The Contractor and City further agree as follows:

1. All insurance coverage and limits provided pursuant to this Contract shall apply to the full extent of the policies involved, available, or applicable. Nothing contained in this Contract or any other agreement relating to the City or its operations limits the application of such insurance coverage. Nothing contained in this Section is to be construed as affecting or altering the legal status of the parties to this Contract.

3. For any claims related to this Project, the Contractor's insurance coverage shall be primary to any other similar insurance. Any insurance or self-insurance maintained by the City, its officers, employees or volunteers, shall be excess of the Contractor's insurance and shall not contribute with it.

4. The City, its officers, elected officials, employees, agents, and volunteers are to be covered as additional insureds with respect to liability arising out of automobiles owned, leased, hired or borrowed by or on behalf of the Contractor and with respect to liability arising out of wor k or operations performed by or on behalf of the Contractor including materials, parts or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the Contractor's insurance, or as a separate owner's policy.

5. For purposes of insurance coverage only, this Contract will be deemed to have been executed immediately upon any party hereto taking any steps that can be deemed to be in furtherance of or towards, performance of this Contract.

8. Contractor shall provide proof that policies of insurance required herein expiring during the term of this Contract have been renewed or replaced with other policies C-5

providing at least the same coverage. Such proof will be furnished within 72 hours of the expiration of the coverages.

10. All insurance coverage shall contain a provision that prohibits cancellation, modification, or lapse without thirty (30) days' prior written notice from insurer to the City. Contractor agrees to require its insurer to modify the certificates of insurance to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation, and to delete the word "endeavor" with regard to any notice provisions.

11. All insurance coverage shall include a severability of interests clause substantially similar to the following: "The insurance afforded by this policy applies separately to each insured against whom a claim or suit is made or suit is brought, except with respect to the limit of the insurer's liability."

12. All insurance coverage shall contain a clause substantially in the following words:

"It is hereby understood and agreed that this policy shall not be canceled nor materially changed except upon thirty (30) days' prior written notice to the City of Buena Park of such cancellation or material change as evidence by a return receipt for a registered letter."

13. All insurance coverage shall cover the operations of the Contractor pursuant to the terms of this Contract.

15. In the event of any loss that is not insured due to the failure of Contractor to comply with these requirements, Contractor agrees to be personally responsible for any and all losses, claims, suits, damages, defense obligations and liability of any kind attributed to City, or City's employees, or any of the additional insureds as a result of such failure.

16. Coverage will not be limited to the specific location or individual or entity designated as the address of the Project.

C-6

Contractor agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided as required here.

Contractor agrees that no contract, standard form or otherwise, used by any party in any way connected with this C ontract, or contracts Contractor enters into on behalf of City, will reserve the right to charge back to City the cost of insurance required by this or any other agreement.

E. Acceptability of Insurers. Coverage shall be written by insurers with a current A .M.

Best's rating of no less than "A:VIII," and be admitted to conduct business in the State of California by the Department of Insurance.

F. Verification of Coverage. Contractor shall furnish the City with evidence of the insurance required by this Section, satisfactory to City, consisting of original certificates of insurance and amendatory endorsements, and an additional insured endorsement at least as broad as Insurance Services Office form CG 20 10 11 85. The endorsements should be on forms provided by the City or on other than the City's forms or a separate owner’s policy, provided those forms or policies are approved by the City, and amended to conform to the City's requirements. All certificates and endorsements are to 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, including endorsements effecting the coverage required by these specifications at any time. Contractor agrees to provide com plete certified copies of policies to City within 10 days of City's request for said copies.

G. Subcontractors. Contractor shall include all subcontractors or any other party involved in the Project by Contractor as insured under its policies or shall require subcontractors or any other party involved in the Project by Contractor to carry the same insurance as required herein. Contractor agrees to obtain certificates evidencing such coverage and make reasonable efforts to ensure that such coverage is provided as required here.

Contractor agrees to require that no contract used by any subcontractor, or contracts Contractor enters into on behalf of City, will reserve the right to charge back to City the cost of insura nce required by this Contract. Contractor agrees that upon request, all agreements with subcontractors or others with whom Contractor contracts with on behalf of City and all certificates of insurance obtained in compliance with this paragraph will be submitted to City or review. Failure of City to request copies of such documents will not impose and liability on City, or its employees.

7. Indemnification.

A. Contractor and City agree that City, its employees, officers, agents and elected officials should, to the extent permitted by law, be fully protected from any loss, injury, damage, claim, lawsuit, cost, expense, attorneys fees, litigation costs, defense costs, court costs or any other cost arising out of or in any way related to the performance of this Contract.

C-7

Contractor acknowledges that CITY would not have entered into this Contract in the absence of the commitment of Contractor to indemnify and protect City as set forth here.To the fullest extent permitted by law, Contractor shall defend, indemnify and hold harmless City, its elected officials, employees, agents , volunteers and offic ers (“Indemnitees”), from any and all liabilities, claims, suits, actions, arbitration proceedings, administrative proceedings, stop notices, regulatory proceedings, losses, expenses or costs of any kind, actual attorneys fees incurred by City , court costs, interest, defense costs including expert witness fees and any other costs or expenses of any kind whatsoever without restriction or limitation incurred in relation to, as a consequence of, arising out of or in any way attributable actually, allegedly or impliedly, in whole or in part to the Contractor’s performance of this Contract. All obligations under this provision are to be paid by Contractor as they are incurred by the City.Without affecting the rights of City under any provision of this Contract or this section, Contractor shall not be required to indemnify and hold harmless City as set forth above for liability attributable to the sole fault of City , provided such fault is determined by agreement between the parties or the findings of a court of competent jurisdiction. This exception will apply only in instances where the City is shown to have been solely at fault and not in instances w here Contractor is solely or partially at fault or in instances where City 's fault accounts for only a percentage of the liability involved.

In those instances, the obligation of Contractor will be all- inclusive and City will be indemnified for all liabi lity incurred, even though a percentage of the liability is attributable to the conduct of the City. Contractor acknowledges that its obligation pursuant to this section extends to liability attributable to City, if that liability is other than the sole fault of City. Contractor has no obligation under this Contract for liability proven in a court of competent jurisdiction or by written agreement between the parties to be the sole fault of City.

E. The obligations of Contractor under this or any other provision of this Contract will not be limited by the provisions of any workers’ compensation act or similar act. Contractor expressly waives its statutory immunity under such statutes or laws as to the Indemnitees. The Contractor’s indemnity obligation set forth in this section shall not be limited by the limits of any policies of insurance required or provided by the Contractor pursuant to this Contract.

9. Prevailing Wages. City and Contractor acknowledge that the Project is a public work to which prevailing wages apply.

Councils and Local Unions (the “CWA”). Contractor agrees to abide by the terms and conditions of the CWA.

11. Titles. The titles used in this Contract are for convenience only and shall in no way define, limit or describe the scope or intent of this Contract or any part of it.

13. Authority. Any person executing this Contract on behalf of Contractor warrants and represents that he or she has the power and authority to execute this Contract on behalf of Contractor and has the power and authority to bind Contractor to the performance of its obligations hereunder.

14. Entire Agreement; Modification. This Contract, including the Contract Documents and any other documents incorporated herein by specific reference, represents the entire and integrated agreement between City and Contractor. Each Party to this Contract acknowledges that no representations, inducements, promises, or agreements, oral or otherwise, have been made by any P arty, or anyone acting on behalf of any P arty, which are not embodied herein. This Contract supersedes all prior oral or written negotiations, representations, or agreements. This Contract may not be modified or amended, nor any provision or breach waived, except in a writing signed by both parties t hat expressly refers to this Contract.

15. Exhibits; Precedence. All documents referenced as exhibits in this Contract are hereby incorporated into this Contract by this reference. In the event of any inconsistency between the express provisions of this Contract and any provision of an exhibit, the provisions of this Contract, then the City’s invitation for bids, if any, shall prevail.

16. Counterparts. This Contract may be executed in counterpart originals, duplicate originals, or both, each of which is deemed to be an original for all purposes.

IN WITNESS WHEREOF, the parties hereto have executed the Contract the day and year first above written.

C-9

CITY OF BUENA PARK

By:

City Manager

ATTEST: APPROVED AS TO FORM:

By: By:

City Clerk City Attorney

Dated:
(“CONTRACTOR”)

By:

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PAYMENT BOND
(LABOR AND MATERIALS)

Bond No. __________

KNOW ALL PERSONS BY THESE PRESENTS that:___________________________________

WHEREAS the City of Buena Park (“Public Agency”), State of California, has awarded to ____________________________________________________________________________ __________________________________________________________________ (“Principal”) (Name and address of Contractor)

a contract (the “Contract”) for the Work described as follows:

LOS COYOTES DRIVE STREET IMPROVEMENT PROJECT
(Project Name)

NOW, THEREFORE, we, the undersigned Principal, and _______________________________ ____________________________________________________________________________ ____________________________________________________________________________ (Name and address of Surety)

(“Surety”) a duly admitted surety insurer under the laws of the State of California, as Surety, are held and firmly bound unto the Public Agency and all contractors, subcontractors, laborers, material suppliers, and other persons employed in the performance of the Contract and referred to in Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code in the penal sum of ______________________________________________________________________ Dollars ($_____________________________), and not less than 100% of total contract amount.

Lawful money of the United States of America, for materials furnished or labor thereon of any kind, or for amounts due under the Unemployment Insurance Act with respect to this Work or labor, that the Surety will pay the same in an amount not exceeding the amount hereinabove set forth, and also in case suit is brought upon this Bond, will pay, in addition to the face amount thereof, costs and reasonable expenses and fees, including reasonable attorneys’ fees, incurred by Public Agency in successfully enforcing this obligation, to be awarded and fixed by the court, and to be taxed as costs and to be included in the judgment therein rendered.

It is hereby expressly stipulated and agreed that this Bond shall inure to the benefit of any and all persons, companies, and corporations entitled to file claims under Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code, so as to give a right of action to them or their assigns in any suit brought upon this Bond.

Upon expiration of the time within which the California Labor Commissioner may serve a civil wage and penalty assessment against the principal, any of its subcontractors, or both the principal C-11

and its subcontractors pursuant to Labor Code Section 1741, and upon expiration of the time within which a joint labor management committee may commence an action against the principal, any of its subcontractors, or both the principal and its subcontractors pursuant to Labor Code Section 1771.2, if the condition of this Bond be fully performed, then this obligation shall become null and void; otherwise, it shall be and remain in full force and effect.

Dated:

“Principal”

By:

Its

By:

Its

(Seal)

“Surety”

By:

Its

By:

Its

(Seal)

Note: This Bond must be executed in duplicate and dated, all signatures must be notarized, and evidence of the authority of any person signing as attorney -in-fact must be attached. DATE OF BOND MUST NOT BE BEFORE DATE OF CONTRACT. Surety companies executing Bonds must appear on the Treasury Department’s most current list (Circular 570 as amended) and be authorized to transact business in the State where the project is located.

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FAITHFUL PERFORMANCE BOND

Bond No. __________

KNOW ALL PERSONS BY THESE PRESENTS that:

WHEREAS the City of Buena Park (“Public Agency”), has awarded to ______________________ ____________________________________________________________________________ __________________________________________________________________ (“Principal”) (Name and address of Contractor)

a contract (the “Contract”) for the Work described as follows:

LOS COYOTES DRIVE STREET IMPROVEMENT PROJECT
(Project Name)

which is hereby referred to and made a part hereof; and

WHEREAS, Principal is required under the terms of the Contract to furnish a Bond for the faithful performance of the Contract.

NOW, THEREFORE, we, the undersigned Principal, and ______________________________ ____________________________________________________________________________ ____________________________________________________________________________ (Name and address of Surety)

(“Surety”) a duly admitted surety insurer under the laws of the State of California, as Surety, are held and firmly bound unto the Public Agency in the penal sum of ________________________ ____________________________________________________________________________ Dollars ($__________________________________________), this amount being not less than 100% of the total Contract Price, in lawful money of the United States of America, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, successors executors and administrators, jointly and severally, firmly by these presents.

THE CONDITION OF THIS OBLIGATION IS SUCH THAT, if the hereby bounded Principal, his, her or its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and provisions in the Contract and any alteration thereof made as therein provided, on the Principal’s part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their true intent and meaning, and shall indemnify and save harmless the Public Agency, its officers, agents and employees, as therein stipulated, then this obligation shall become null and void; otherwise, it shall be and remain in full force and effect.

C-13

The Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract or of the Work to be performed thereunder or the plans and specifications accompanying the same shall in anywise affect its obligations under this Bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Contract or to the Work or to the specifications. Surety hereby waives the provisions of California Civil Code Sections 2845 and 2849. The City is the principal beneficiary of this Bond and has all rights of a party hereto.

Dated: ______________________________

“Principal”

By:

Its

By:

Its

(Seal)

“Surety”

By:

Its

By:

Its

(Seal)

Note: This Bond must be executed in duplicate and dated, all signatures must be notarized, and evidence of the authority of any person signing as attorney-in-fact must be attached. DATE OF BOND MUST NOT BE BEFORE DATE OF CONTRACT. Surety companies executing Bonds must appear on the Treasury Department’s most current list (Circular 570 as amended) and be authorized to transact business in the State where the project is located.

C-14

WORKERS’ COMPENSATION

CERTIFICATE OF INSURANCE

WHEREAS, the City of Buena Park (“City”) has required certain insurance to be provided by:

____________________________________________________________________________

1. This certificate is issued to:

City of Buena Park
City Hall
6650 Beach Blvd
Buena Park, CA 90621

The insureds under such policy or policies are:
______________________________________________________________________

2. Workers’ Compensation Policy or Policies in a form approved by the Insurance Commissioner of California covering all operations of the named insureds as follows:

Policy Number Effective Date Expiration Date

_________________________________________________
_________________________________________________
_________________________________________________
_________________________________________________

By: ______________________________________________
Its Authorized Representative

C-15

PROGRESS PAYMENT SIGNATURE AUTHENTICATION

The following personnel of _______________________________________________________ ____________________________________________________________________________ (Contractor)

Are authorized to sign bills and/or receive checks.

NAME TITLE SIGNATURE

Any subsequent changes to supersede this signature list must be requested in writing and accompanied by a
facsimile of this form to be complete in its entirety.

By: ________________________________________________
(name and title)

For: _______________________________________________
(Bidder)

C-16

ADDITIONAL INSURED ENDORSEMENT

COMPREHENSIVE GENERAL LIABILITY

Name and address of named insured (“Named Insured”):

Name and address of insurance company (“Company”):

General description of agreement(s), permit(s), license(s), and/or activity(ies) insured:

Notwithstanding any inconsistent statement in the policy to which this endorsement is attached (the “Policy”) or in any endorsement now or hereafter attached thereto, it is agreed as follows:

5. The insurance afforded by the Policy for contractual liability insurance (subject to the terms, conditions and exclusions applicable to such insurance) includes liability assumed by the Named Insured under the indemnification and/or hold harmless provision(s) contained in or executed in conjunction with the written agreement(s) or permit(s) designated above, between the Named Insured and the Additional Insureds.

6. The policy to which this endorsement is attached shall not be subject to cancellation, change in coverage, reduction of limits (except as the result of the payment of claims), or non-renewal except after written notice to Public Agency, by certified mail, return receipt requested, not less than thirty ( 30) Days before the effective date thereof. In the event of Company’s failure to comply with this notice provision, the policy as initially drafted will continue in full force and effect until compliance with this notice requirement.

C-17

8. It is hereby agreed that the laws of the State of C alifornia shall apply to and govern the validity, construction, interpretation, and enforcement of this contract of insurance.

9. This endorsement and all notices given hereunder shall be sent to Public Agency at:

City Manager
City of Buena Park
City Hall
6650 Beach Boulevard
Buena Park, CA 90621

TYPE OF COVERAGES TO WHICH THIS

ENDORSEMENT ATTACHES

POLICY PERIOD

FROM/TO

LIMITS OF

LIABILITY

11. Scheduled items or locations are to be identified on an attached sheet. The following inclusions relate to the above coverages. Includes:

□ Contractual Liability □ Explosion Hazard
□ Owners/Landlords/Tenants □ Collapse Hazard
□ Manufacturers/Contractors □ Underground Property Damage □ Products/Completed Operations □ Pollution Liability □ Broad Form Property Damage □ Liquor Liability
□ Extended Bodily Injury □
□ Broad Form Comprehensive □
General Liability Endorsement □

13. This is an □ occurrence or □ claims made policy (check one).

14. This endorsement is effective on at 12:01 a.m. and forms a part of C-18

Policy Number .

I, (print name), hereby declare under penalty of perjury under the laws of the State of California, that I have the authority to bind the Company to this endorsement and that by my execution hereof, I do so bind the Company.

Executed , 2024

________________________________
Signature of Authorized Representative
(Original signature only; no facsimile signature or
initialed signature accepted)

Telephone No.: ( )

C-19

ADDITIONAL INSURED ENDORSEMENT

AUTOMOBILE LIABILITY

Name and address of named insured (“Named Insured”):

Name and address of insurance company (“Company”):

General description of agreement(s), permit(s), license(s), and/or activity(ies) insured:

Notwithstanding any inconsistent statement in the policy to which this en dorsement is attached (the “Policy”) or in any endorsement now or hereafter attached thereto, it is agreed as follows:

4. Nothing in this contract of insurance shall be construed to preclude coverage of a claim by one insured under the policy against another insured under the policy. All such claims shall be covered as third-party claims, i.e., in the same manner as if separate policies had been issued to each insured. Nothing contained in this prov ision shall operate to increase or replicate the Company’s limits of liability as provided under the policy.

5. The insurance afforded by the Policy for contractual liability insurance (subject to the terms, conditions and exclusions applicable to such insur ance) includes liability assumed by the Named Insured under the indemnification and/or hold harmless provision(s) contained or executed in conjunction with the written agreement(s) or permit(s) designated above, between the Named Insured and the Additional Insureds.

6. The policy to which this endorsement is attached shall not be subject to cancellation, change in coverage, reduction of limits (except as the result of the payment of claims), or non-renewal except after written notice to Public Agency, by cert ified mail, return receipt requested, not less than thirty (30) Days before the effective date thereto. In the event of Company’s failure to comply with this notice provision, the policy as initially drafted will continue in full force and effect until compliance with this notice requirement.

C-20

8. It is hereby agreed that the laws of the State of California shall apply to and govern the validity, construction, interpretation, and enforcement of this contract of insurance.

9. This endorsement and all notices given hereunder shall be sent to Public Agency at:

City Manager
City of Buena Park
City Hall
6650 Beach Boulevard
Buena Park, CA 90621

10. Except as stated above and not in conflict with this endorsement, nothing contained herein shall be held to waive, alter , or extend any of the limits, agreements, or exclusions of the policy to which this endorsement is attached.

TYPE OF COVERAGES TO WHICH THIS

ENDORSEMENT ATTACHES

POLICY PERIOD

FROM/TO

LIMITS OF

LIABILITY

11. Scheduled items or locations are to be identified on an attached sheet. The following inclusions relate to the above coverages. Includes:

□ Any Automobiles □ Truckers Coverage
□ All Owned Automobiles □ Motor Carrier Act
□ Non-owned Automobiles □ Bus Regulatory Reform Act
□ Hired Automobiles □ Public Livery Coverage
□ Scheduled Automobiles □
□ Garage Coverage □

12. A □ deductible or □ self-insured retention (check one) of $ ________________applies to all coverage(s) except:___________________________(if none, so state). The deductible is applicable □ per claim or □ per occurrence (check one).

13. This is an □ occurrence or □ claims made policy (check one).

14. This endorsement is effective on _______________ at 12:01 a.m. and forms a part of Policy Number ___________.

I, ______________________(print name), hereby declare under penalty of perjury under the laws C-21

of the State of California, that I have the authority to bind the Company to this endorsement and that by my execution hereof, I do so bind the Company.

Executed _______________, 20____

________________________________
Signature of Authorized Representative
(Original signature only; no facsimile signature or
initialed signature accepted)

Telephone No.: (____) ____________

C-22

ADDITIONAL INSURED ENDORSEMENT

EXCESS LIABILITY

Name and address of named insured (“Named Insured”):

Name and address of insurance company (“Company”):

General description of agreement(s), permit(s), license(s), and/or activity(ies) insured:

Notwithstanding any inconsistent statement in the policy to which this endorsement is attached (the “Policy”) or in any endorsement now or hereafter attached thereto, it is agreed as follows:

1. The City of Buena Park(“Public Agency”), its elected officials, officers, attorneys, agents, employees, and volunteers are additional insureds (the above named additional insureds are hereafter referred to as the “Additional Insureds”) under the Policy in relation to those activities described generally above with regard to operations performed by or on behalf of the Named Insured. The Additional Insureds have no liability for the payment of any premiums or assessments under the Policy.

5. The insurance afforded by the Policy for contractual liability insurance (subject to the terms, conditions and exclusions applicable to such insurance) includes liability assumed by the Named Insured under the indemnification and/or hold harmless provision(s) contained in or executed in conjunction with the written agreement(s) or permit(s) designated above, between the Named Insured and the Additional Insureds.

6. The policy to which this endorsement is attached shall not be subject to cancellation, change in coverage, reduction of limits (except as the result of the payment of claims), or non-renewal except after written notice to Public Agency, by certified mail, return receipt requested, not less than thirty (30) Days before the effective dat e thereto. In the event of Company’s failure to comply with this notice provision, the policy as initially drafted will continue in full force and effect until compliance with this notice requirement.

C-23

8. It is hereby agreed that the laws of the State of California shall apply to and govern the validity, construction, interpretation, and enforcement of this contract of insurance.

9. This endorsement and all notices given hereunder shall be sent to Public Agency at:

City Manager
City of Buena Park
City Hall
6650 Beach Boulevard
Buena Park, CA 90621

TYPE OF COVERAGES TO WHICH THIS

ENDORSEMENT ATTACHES

POLICY PERIOD

FROM/TO

LIMITS OF

LIABILITY

□ Following Form
□ Umbrella Liability
□ ____________________________________

11. Applicable underlying coverages:

INSURANCE COMPANY POLICY NUMBER AMOUNT

12. The following inclusions, exclusions, extensions or specific provisions relate to the above coverages:

13. A □ deductible or □ self-insured retention (check one) of $ __________________________ applies to all coverage(s) except:_____________________________________________ (if none, so state). The deductible is applicable □ per claim or □ per occurrence (check one).

14. This is an □ occurrence or □ claims made policy (check one).

15. This endorsement is effective on ________ at 12:01 a.m. and forms a part of Policy Number C-24

________.

I, _________________________________ (print name), hereby declare under penalty of perjury under the l aws of the State of California, that I have the authority to bind the Company to this endorsement and that by my execution hereof, I do so bind the Company.

Executed ____________, 2024

________________________________
Signature of Authorized Representative
(Original signature only; no facsimile signature or
initialed signature accepted)

Telephone No.: (____) ______________

SUNGARD PUBLIC SECTOR PAGE NUMBER: 1 DATE: 08/05/2024 CITY OF BUENA PARK AUDIT21 TIME: 14:53:16 EXPENDITURE AUDIT TRAIL SELECTION CRITERIA: orgn.fund='24' and orgn.orgn2='590187' and expledgr.account='9806' ACCOUNTING PERIODS: 1/24 THRU 13/24
SORTED BY: FUND,ACTIVITY,ACCOUNT
TOTALED ON: FUND,ACTIVITY
PAGE BREAKS ON: FUND
FUND - 24 - STATE GAS TAX FUND
ACTIVITY - 590187 - LOS COYOTES BEACH-COUNTRY

ACCOUNT CUMULATIVE

DATE T/C PURCHASE O REFERENCE VENDOR BUDGET EXPENDITURES ENCUMBRANCES DESCRIPTION BALANCE 24-5-590187-090-590187 - LOS COYOTES BEACH-COUNTRY
9806 CAPITAL PROJECT .00 .00 .00 BEGINNING BALANCE 06/30/23 11-1 700,000.00 POSTED FROM BUDGET SYSTEM 07/13/23 17-1 240019-01 10000774 INLAND VALLEY SL 6,500.00 GEOTECHNICAL SERVICES FOR 07/13/23 17-1 240021-01 10011653 JOSEPH C. TRUXAW 34,000.00 SURVEYING SERVICES FOR TH 08/29/23 21-2 240019-01 420857 10000774 INLAND VALLEY SL 6,500.00 -6,500.00 GEOTECHNICAL SERVICES FOR 09/12/23 21-3 240021-01 421076 10011653 JOSEPH C. TRUXAW 24,052.80 -34,000.00 SURVEY/LOS COYOTES TOTAL CAPITAL PROJECT 700,000.00 30,552.80 .00 669,447.20 TOTAL ACTIVITY - LOS COYOTES BEACH-COUNTRY 700,000.00 30,552.80 .00 669,447.20 TOTAL FUND - STATE GAS TAX FUND 700,000.00 30,552.80 .00 669,447.20 TOTAL REPORT 700,000.00 30,552.80 .00 669,447.20 * THERE IS A NOTE ASSOCIATED WITH THIS TRANSACTION
SUNGARD PUBLIC SECTOR PAGE NUMBER: 1 DATE: 08/05/2024 CITY OF BUENA PARK AUDIT21 TIME: 14:09:14 EXPENDITURE AUDIT TRAIL SELECTION CRITERIA: orgn.fund='25' and orgn.orgn2='590186' and expledgr.account='9806' ACCOUNTING PERIODS: 1/24 THRU 13/24
SORTED BY: FUND,ACTIVITY,ACCOUNT
TOTALED ON: FUND,ACTIVITY
PAGE BREAKS ON: FUND
FUND - 25 - MEASURE M2
ACTIVITY - 590186 - CABALLERO VALLEY TO REGIO

ACCOUNT CUMULATIVE

DATE T/C PURCHASE O REFERENCE VENDOR BUDGET EXPENDITURES ENCUMBRANCES DESCRIPTION BALANCE 25-5-590186-090-590186 - CABALLERO VALLEY TO REGIO
9806 CAPITAL PROJECT .00 .00 .00 BEGINNING BALANCE 06/30/23 11-1 1,000,000.00 POSTED FROM BUDGET SYSTEM 08/17/23 17-2 240090-01 00004687 KDM MERIDIAN COR 19,990.00 TOPOGRAPHIC SURVEY AND 08/17/23 17-2 240090-02 00004687 KDM MERIDIAN COR 1,500.00 CORNER RECORD FILING 08/21/23 17-2 240096-01 10011088 GROUP DELTA CONS 8,179.00 GEOTECHNICAL SERVICES PER 10/23/23 21-4 240090-01 421755 00004687 KDM MERIDIAN COR 19,990.00 -19,990.00 CABALLERO/REHAB/OCT23 10/23/23 21-4 240096-01 421733 10011088 GROUP DELTA CONS 8,179.00 -8,179.00 GEOTECHNICAL SERVICES PER 04/24/24 17-10 240484-01 10012511 TSG ENTERPRISES, 5,380.00 COMMUNITY WORKFORCE AGREE 04/24/24 17-10 240484-02 10012511 TSG ENTERPRISES, 1,345.00 CONTINGENCY 05/01/24 17-11 240490-01 10000124 HARDY & HARPER I 659,000.00 PAVEMENT REHABILITATION C 05/01/24 17-11 240490-02 10000124 HARDY & HARPER I 76,000.00 CONTINGENCY 05/22/24 17-11 240526-01 10000774 INLAND VALLEY SL 2,915.00 MATERIAL TESTING SERVICES 05/22/24 17-11 240526-02 10000774 INLAND VALLEY SL 915.00 CONTINGENCY 06/26/24 21-12 240484-01 425813 10012511 TSG ENTERPRISES, 166.50 -166.50 CABALLERO PAVE/APR-24 06/26/24 21-12 240484-01 425813 10012511 TSG ENTERPRISES, 629.00 -629.00 CABALLERO PAVE/MAY-24 06/27/24 21-12 240526-01 425725 10000774 INLAND VALLEY SL 400.00 -400.00 CABALLERO PAVE/MAY-24 07/10/24 21-13 240484-01 426043 10012511 TSG ENTERPRISES, 499.50 -499.50 CABALLERO PAVE/JUNE24 07/24/24 21-13 240526-01 426190 10000774 INLAND VALLEY SL 1,680.00 -1,680.00 CABALLEO PAVE/JUNE-24 07/29/24 21-13 240490-01 426181 10000124 HARDY & HARPER I 636,201.24 -636,201.24 CABAALLERO BL/JUNE-24 TOTAL CAPITAL PROJECT 1,000,000.00 667,745.24 107,478.76 224,776.00 TOTAL ACTIVITY - CABALLERO VALLEY TO REGIO 1,000,000.00 667,745.24 107,478.76 224,776.00 TOTAL FUND - MEASURE M2 1,000,000.00 667,745.24 107,478.76 224,776.00 TOTAL REPORT 1,000,000.00 667,745.24 107,478.76 224,776.00 * THERE IS A NOTE ASSOCIATED WITH THIS TRANSACTION
City of Buena Park
City Council Regular Meeting Agenda Report

BUDGET ALLOCATION FOR THE OFFICE OF SUSTAINABILITY
Meeting
Tuesday, August 13, 2024, 5:00 PM
Agenda Group
NEW BUSINESS Item: 5C
Presented By
Lotus Thai, Sustainability Manager
Prepared By
Matt Foulkes, Director of Community and Economic
Development
Approved By
Aaron France, City Manager

RECOMMENDED ACTION
1) Allocate $43,000 from the undesignated General Fund balance for the Oﬃce of Sustainability budget for Fiscal Year 2024-2025.

PREVIOUS CITY COUNCIL ACTION
City Council approved the Sustainability Manager position in May 2023.

DISCUSSION
In May 2023, the City Council approved the creation of a Sustainability Manager position within the Community and Economic Development Department. This position was ﬁlled in April 2024 by Lotus Thai. The main priority for the Oﬃce of Sustainability in FY 2024-2025 is to develop the City’s ﬁrst Climate Action and Adaptation Plan (CAAP).

The CAAP will be Buena Park’s strategic plan to reduce greenhouse gas emissions and adapt to the impacts of climate change. While the development of the CAAP is a critical early step towards becoming more sustainable, the Oﬃce of Sustainability is also tasked with developing a work plan for ﬁscal year 2024-2025 to increase city staff and community awareness, engagement and action towards becoming more sustainable. To accomplish this, the Oﬃce of Sustainability is requesting a budget allocation of $43,000 for the following projects and programs:

1. Awareness ($9,650)
a. Develop Sustainability branding for the community to recognize. i. Began June 3, 2024 with the launch of a new logo.
b. Create a website/webpage
i. Webpage launched June 9, 2024 and will be continuously updated. c. Foster relationships through memberships in Green Cities California and Sustain SoCal, and participation in relevant conferences .

2. Engagement ($16,148)

a. Education programs (e.g. Tabling at community events, ﬁeld trips, informational ﬂyers, and presentations) and CAAP feedback sessions for residents, businesses, and City employees. i. Giveaways and prizes are crucial to attracting people to tabling events. After learning about sustainability, participants will be given small, sustainable prizes. ii. Efforts began on June 5, 2024 ,with an internal “Snack and Sustainability” event, Sustainability 101 presentations at commission meetings, and community introduction to the CAAP at two Summer Concerts in the Park events.

3. Action ($8,320)
a. After learning the “why” through engagement programs, the community can adopt sustainable practices, fostering a cultural shift in Buena Park.
b. City Hall should be the “green” example transitioning from disposable dishware, utensils, and cups to reusable options.
c. More projects will be identiﬁed as the year progresses.

4. Inspire ($7,694)
a. To sustain sustainability, we need to inspire people through stories and recognition. This includes a “Sustainable Buena Park Resident Champion” and “Sustainable Buena Park Business Champion” recognition program and Earth Day Fair at the City’s annual Spring Extravaganza .

5. Miscellaneous items, oﬃce supplies, etc. ($1,000)

BUDGET IMPACT
Program costs will total approximately $42,812. Staff recommends a budget allocation from the undesignated General Fund balance in the amount of $43,000 for this purpose.

Attachments
Sustainability Budget_City Council.pdf
FY24-25 Sustainability Budget
Awareness Estimated
Website Microsoft Office Website maintenance for CAAP dashboard (e.g. PowerBI) 1,000.00$ Brand Climate Action Comission Miscellaneous supplies like business cards $ 250.00 Brand Apparel
Polo shirts and hats with sustainability logo (for frequent event workers: 5 commissioners, 1 sustainability manager, 3 extra for volunteers) 450.00$
Membership Green Cities California Group of CA sustainability professionals to share information, network, etc.; recommended by Irvine sustainability team $ 1,500.00 Membership Sustain Socal
Membership fee; all other OCPA cities are members; includes annual conference + workshops; can help with CAAP outreach/sustainability education $ 1,500.00
Conference VERGE $800 hotel, $400 flight, $250 food, $1,500 registration - San Jose $ 2,950.00 Conference TBD Examples: Green Cities California Spring convening - May 2024 was $450 including food and lodging for 2 nights 2,000.00$ 9,650.00$
Engagement Estimated
Education Kahoot Subscription for account for <2000 players to play sustainability quiz, renews June 2025 588.00$ Education Canva Website to make flyers, presentations, etc. 120.00$ Education Noun Project Website for icons to develop sustainability website; annual subscription 40.00$ Education Snacks and Sustainability
Annual internal education event (departments will be split into rotations, each rotation will be trained once a year); cost includes food and training supplies for 60 people/event 2,400.00$ Education Field Trips
Trips with staff, commissioners, city council to EDCO San Diego recycling center, Street Tree Revival, ECOS, etc. (cost to cover gas) 200.00$
Education Social Media Paid Advertisement CAAP Announcement (feedback/public comments) 1,000.00$ Education Text Survey/Town Hall CAAP Announcement (feedback/public comments) 1,800.00$ Giveaways Stickers
Need inventory to "grab and go" for events like Whitaker Park Grand Opening; low cost giveaway with design "I am sustainABLE"; 3,000 waterproof stickers 700.00$
Giveaways Magnets
For trash sorting education events: magnets (to put on fridges) of landfill, recycling, and compost trash carts saying where items go; 500 sets 1,000.00$
Giveaways Temporary Tattoos For events with kids (e.g. Summer Day Camp) with cute saying/graphic; 2,000 tattoos 300.00$ Giveaways Reusable Utensils
Giveaway item for community events that require more involvement (e.g. CAAP feedback town hall); $2.35/set + tax + $100 set up fee + shipping; 2,000 sets 6,000.00$
Giveaways Reusable Snack Bags Giveaway item for community events that require more involvement (e.g. CAAP feedback town hall); 700 bags at $2.50/bag 2,000.00$ 16,148.00$
Action Estimated
City Reusables Employee + City Council Reusables
Branded reusable plates, cups, utensils, and towels w/carbiners to reduce single-use waste; 400 full-time employees (cost for fewer people is about the same b/c bulk purchasing; City Clerk will cover City Council sets) 5,320.00$ Projects Sustainability Projects
Miscellaneous supplies needed to supplement unknown events, projects, etc. (e.g. textile upcycling program, outreach events, signage around buildings) 3,000.00$
8,320.00$
Inspire Estimated
Champion City Sustainability Champion
Annual recognition for sustainable resident and business (10 trophies created from 1 Buena Park tree log at $250/trophy; 2 trophies given per year) 2,694.00$
Fair Earth Day Fair
Captive audience at Spring Eggstravaganza and lower staff cost by partnering at exisitng event; staff will look for sponsorship opportunities
Booth ideas: CAAP feedback, local vendor/sustainable stores, non-profits/gov agencies (OCTA, OCPA), education (safe biking, vermicomposting, bees/chickens, electric lawn equipment), trash can decorating comeptition (inspired by Coachella program), community garden showcase, Swap not Shop (plants and clothes), smoothie bike Plant-based food trucks 5,000.00$
7,694.00$
Admin Estimated
Other Office Supplies Miscellaneous items and storage cabinets ($600 for 2; none available in storage/surplus) 1,000.00$ 1,000.00$
TOTAL 42,812.00$
Subtotal Admin
Subtotal Awareness
Subtotal Engagement
Subtotal Action
Subtotal Inspire
City of Buena Park
City Council Regular Meeting Agenda Report
APPEAL OF GROUP HOME PERMIT DENIAL AT 8559 BLUEBELL DRIVE The request for a Public Hearing has been withdrawn at the request of the Appellant.

Meeting
Tuesday, August 13, 2024, 5:00 PM
Agenda Group
PUBLIC HEARING Item: 6A
Presented By
Matt Foulkes, Director of Community and Economic
Development
Prepared By
Matt Foulkes, Director of Community and Economic
Development
Approved By
Aaron France, City Manager

RECOMMENDED ACTION
On May 2, 2024, staff oﬃcially denied the Group Home Permit for the property located at 8559 Bluebell Drive.

Following the Group Home Permit denial by staff, on May 14, 2024, the applicant formally appealed the determination to the Planning Commission.

The Planning Commission conducted a hearing for the denial of the Group Home Permit on June 26, 2024. The Planning Commission unanimously upheld staff's denial of the permit. The applicant formally appealed the Planning Commission determination to the City Council on July 15, 2024. The applicant subsequently withdrew their appeal to the City Council on August 2, 2024.

Given the Public Hearing has been withdrawn at the request of the appellant, no further action is required.

City of Buena Park
City Council Regular Meeting Agenda Report
TITLE 19 (ZONING CODE) TEXT AMENDMENT C-24-4 REGARDING URBAN HOMESTEADING Meeting
Tuesday, August 13, 2024, 5:00 PM
Agenda Group
PUBLIC HEARING Item: 6B
Presented By
Matt Foulkes - Community and Economic Development Director Prepared By
Matt Foulkes, Director of Community and Economic
Development
Approved By
Aaron France, City Manager

RECOMMENDED ACTION
1) Adopt the proposed Ordinance approving Text Amendment No. C-24-4 regarding the keeping of chickens and bees within single-family residential (RS) zones citywide.

PREVIOUS CITY COUNCIL ACTION
The City Council received study sessions reports on this topic at its February 27, 2024 and May 14, 2024 meetings.

DISCUSSION
At the study session on February 27, 2024, the City Council received a report regarding potential amendments to the Buena Park Municipal Code (BPMC) to expand the areas where urban homesteading activities are permitted.

Urban homesteading activities include the growing of fruits, vegetables and herbs, the keeping of small livestock (e.g. chickens) as well as beekeeping. Currently, the BPMC only allows these types of activities on properties located within the Agricultural (A) overlay zone. There are only (15) parcels with this overlay zone in the City, all located on Haldor Place.

At the conclusion of the study session, the City Council referred this item to the Climate Commission for its review and recommendations. The Climate Commission received presentations from city staff and local bee and chicken keeping experts at its meetings in April and May. On May 14, 2024, the City Council received a follow-up study session to present the recommendations made by the Climate Commission. Following the study session, the City Council referred this item to the Planning Commission for review and recommendation on the proposed amendments to Title 19 (Zoning). The Planning Commission reviewed the proposed amendments at its meeting on July 24, 2024, and voted unanimously to recommend that the City Council adopt Text Amendment C-24-4. The following regulations are proposed for the keeping of bees and chickens within all single-family (RS) zones:

Beekeeping:

Each single-family property may keep a maximum of four (4) hives. The number of hives ﬂuctuates slightly depending on the season; properties found with more than four (4) hives will ﬁrst be issued a warning to reduce the number of hives prior to initiating further enforcement actions.

Hives may be located in the side or rear yard but must be a minimum of ten (10) feet from any property line.

Parcels that share a common property line with a school, licensed childcare facility, or park shall not be permitted to keep bees.

No property may keep bees without ﬁrst obtaining a ministerial permit from the Community and Economic Development Department.

Each application for beekeeping shall be on a City-provided form and shall include the following information and documentation:

The property address where beekeeping is proposed
Property owner authorization
A site plan showing the location on the parcel where the beehives will be located and the required six- foot tall fence/wall/hedge around the property or apiary The location of the on-site water source
Self-attestation that the applicant has completed a training/certiﬁcation course on beekeeping The Community and Economic Development Director may issue additional rules and requirements regulating the keeping or maintaining of bees based on the site-speciﬁc conditions, and may deny, suspend or revoke any such permit for violations of these requirements.

Chicken Keeping:

Each single-family (RS) zoned property may keep a maximum of six (6) chickens (no roosters).

No property may keep chickens without ﬁrst obtaining a ministerial permit from the Community and Economic Development Department.

Any property which keeps or maintains chickens shall provide an adequate enclosure.

The enclosure must be a minimum size of ten (10) square feet of permeable land per chicken.

The enclosure must provide protection for the chickens from the elements, and to prevent wildlife or other predators from gaining entry.

Chicken enclosures or related structures may be located in the side or rear of the property but shall not be located in the front yard.

Chicken coops/runs/enclosures shall be at least 10 feet from any side or rear property line.

Chickens must be provided proper feeding and water at intervals not longer than twelve (12) hours apart.

Coops, pens, enclosures or yards where chickens are kept must be maintained in a clean and sanitary condition. Manure or other debris shall be removed from such enclosures daily.

Each application for the keeping of chickens shall be on a City-provided form and shall include the following information and documentation:

The property address where chicken keeping is proposed
Property owner authorization
A site plan showing the location on the parcel where the enclosure/coop/run will be located Self-attestation that the applicant has completed a training/certiﬁcation course on keeping of chickens The Community and Economic Development Director may issue additional rules and requirements regulating the keeping or maintaining of chickens based on the site-speciﬁc conditions, and may deny, suspend or revoke any such permit for violations of these requirements.

Pursuant to BPMC Section 19.124.010 a text amendment may be initiated by order of the City Council. In making its determination on the proposed text amendment the City Council shall make the following ﬁndings:

1. Provide an explanation of the relationship to the General Plan and any applicable Speciﬁc Plans.

2. Consideration of the effect of the proposal on the housing needs of the region balanced against the public service needs of City residents and the ﬁscal and environmental resources available.

The proposed amendments to Title 19 of the BPMC to allow for the keeping of bees and chickens within single- family residential zones supports multiple policies and goals of the General Plan including the Conservation and Sustainability Element and the Environmental Justice Element. Several goals and policies within these elements encourage projects and programs which reduce solid waste creation, promote sustainable development practices and promote access to fresh food options. Allowing residents to keep chickens and bees on their property, subject to the proposed development standards, not only improves the availability and quality of the local food supply, but it also reduces the carbon footprint and promotes environmentally sustainable living practices.

Additionally, the proposed amendments to Title 19 will not have any effect on the housing needs of the region. The proposed regulations will allow existing RS-zoned properties in the City to apply to keep chickens or bees within their rear or side yard area subject to compliance with the development standards, and application and inspection processes outlined in the proposed text amendment. Properties that do not manage or maintain their bees or chickens pursuant to the speciﬁed standards will be subject to code enforcement action, up to and including the revocation of their beekeeping or chicken keeping permit.

PUBLIC HEARING NOTICE
Notice of the public hearing was published in the Buena Park Independent on August 1, 2024; and posted at City Hall, the Buena Park Library, and the Ehlers Event Center on August 1, 2024.

BUDGET IMPACT
There is no budget impact associated with this action.

Attachments
Ordinance - Urban Homesteading.pdf

ORDINANCE NO. _____
TEXT AMENDMENT NO. C-24-4

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
BUENA PARK, CALIFORNIA, AMENDING SECTION 19.312.040
(AGRICULTURAL OVERLAY CLASSIFICATION) AND SECTION

19.348.050 (ANIMAL KEEPING) OF TITLE 19 (ZONING) OF THE

BUENA PARK MUNICIPAL CODE TO REGULATE THE

KEEPING OF CHICKENS AND BEES IN SINGLE-FAMILY (RS)

ZONES CITY WIDE

A. RECITALS.

(i) The City of Buena Park (“City”) is a California charter city with plenary authority over all “municipal affairs” and the broad “police powers” vested by California’s Constitution, pursuant to which it may make and enforce laws necessary to protect and preserve the health, safety, and welfare of residents’ subject only to enactments by the California Legislature on matters of “statewide concern.”

(ii) Consistent with such authority, the City enacted the Buena Park Municipal Code (BPMC) and Buena Park Zoning Code (Title 19 of the BPMC, hereinafter “BPMC”) to, among other things, regulate the location and nature of land uses in the City.

(iii) On July 24, 2024, the Planning Commission of the City of Buena Park, held a duly noticed public hearing to consider a recommendation to the City Council to approve Zoning Text Amendment No. C-24-4 and recommended that the City Council approve the Text Amendment.

(iv) On August 13, 2024, the City Council conducted a duly noticed public hearing to consider Zoning Text Amendment No. C-24-4.

(v) This Ordinance is a text change to the BPMC and has been processed and considered in accordance with the provisions of Section 19.124.010 (Text Change) of the Buena Park Municipal Code, as well as applicable provisions of California law, and all other legal prerequisites to the adoption of this Ordinance have occurred.

B. ORDINANCE.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BUENA PARK DOES ORDAIN AS FOLLOWS:

SECTION 1. The facts set forth in the Recitals, Part A, of this Ordinance are true and correct, and incorporated into this Ordinance as substantive findings.

SECTION 2. Section 19.312.040 of the Buena Park Municipal Code, entitled “Agricultural Overlay Classification” is hereby amended to read as follows (new text reflected in underline and deleted text in strikethrough):
§ 19.312.040. Agricultural Overlay Classification.

A. Permitted Uses. Property located in an area shown on the Zoning Map with the symbol "A" may be used for the following agricultural activities in addition to the uses authorized for the underlying zone:

ORDINANCE NO. _______

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Buena Park City CouncilAugust 13, 2024

Buena Park City Council
August 13, 2024