City of Chula Vista - City Council
July 28, 2026 Post City Council Agenda
P a g e | 4
Approval of Resolution A will amend the agreement with SC Commercial to reflect an updated not-to-exceed limitation. The amended agreement will be effective July 28, 2026 and is anticipated to conclude on June 30, 2029. During the period, the agreement will have a not-to-exceed amount of $3,300,000. Should both options to extend the agreement are executed, the total agreement amount shall not exceed $5,500,000. The first amendment to the agreement with SC Commercial is included as Attachment 1.
Approval of Resolution B will authorize entering into an agreement with SCOC. The agreement with SCOC will have an initial term effective July 28, 2026 and is anticipated to conclude on June 30, 2029, and shall not exceed $2,700,000. If both options to extend are executed, the maximum agreement amount will be limited to $4,500,000. The agreement with SCOC is included as Attachment 2.
The initial term for both agreements through June 30, 2029 shall not exceed $6,000,000. The combined notto-exceed amount for both agreements, with optional extensions exercised, will be $10,000,000. This collective maximum is consistent with Resolution No. 2026-069 for the original agreement with SC Commercial, and no new costs are being added as a result of this action.
DECISION-MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the real property holdings of the City Council members do not create a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.).
Staff is not independently aware and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
Funding for motor vehicle fuel supply and delivery is included in the fiscal year 2026-27 Central Garage Fund budget. The approval of the amendment with SC Commercial and new agreement with SCOC do not provide for additional funding capacity and instead splits the original agreement amount between the two agreements. The combined not-to-exceed total of $10,000,000 is consistent with Resolution No. 2026-069 for the original agreement amount with SC Commercial. There is no additional fiscal impact from approving these agreements.
ONGOING FISCAL IMPACT
Approval of the resolution splits the existing contract with SC Commercial between two distinct legal entities (SC Commercial and SCOC) operating with a shared DBA. This change does not increase the term of the agreement or the not-to-exceed contract amount.
Due to various factors including the volatile nature of fuel prices and a continuously growing fleet, the total amount of both agreements (SC Commercial and SCOC) allows for an annual expenditure of up to $2.0 million per year ($1.1 million for SC Commercial and $0.9 million for SCOC) during the term of the agreement. Costs relating to services provided by SCOC and SC Commercial in subsequent fiscal years will be considered as part of the annual budget development process.
City of Chula Vista - City Council
July 28, 2026 Post City Council Agenda
P a g e | 5
If the two agreement extensions are authorized, the table below outlines the not-to-exceed amount for the 60-month term. Agreement capacity is $2.0 million total per year but actuals will fluctuate from year to year based on actual demand:
Description
Initial Term
FY 2027 - FY
2029
Extension 1
FY 2030
Extension 2
FY2031 TOTAL
Fuel Supply And Delivery
Services – SC Commercial
$3.3M $1.1M $1.1M $5.5M
Fuel Supply And Delivery
Services - SCOC
$2.7M $0.9M $0.9M $4.5M
Total $6.0M $2.0M $2.0M $10.0M
ATTACHMENTS
1. First Amendment to Agreement - SC Commercial
2. Two-Party Agreement - SCOC
Staff Contact: Alicia Granados, Senior Management Analyst Angelica Aguilar, Director of Public Works
City of Chula Vista - City Council
July 28, 2026 Post City Council Agenda
Form Rev 9/30/2025
RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING THE FIRST AMENDMENT TO
THE CONTRACTOR SERVICE AGREEMENT FOR MOTOR
VEHICLE FUEL SUPPLY AND DELIVERY BETWEEN THE
CITY OF CHULA VISTA AND SC COMMERCIAL, LLC, DBA
SC FUELS
WHEREAS, on October 24, 2025, the City issued a Request for Proposal for fuel supply and delivery services; and
WHEREAS, the City contractor selection committee completed its review of the proposals and determined SC Fuels (SC Commercial, LLC and Southern Counties Oil Company) as the firm to provide such services; and
WHEREAS, on May 5, 2026, Council approved the Contractor Service Agreement (“Original Agreement”) with SC Commercial, LLC, DBA SC Fuels (“SC Commercial”) effective July 1, 2026; and
WHEREAS, the Original Agreement included a three-year contract term with two (2) oneyear options to extend and the combined total of all assigned projects per the contractor agreement as a not to exceed $6,000,000 in the aggregate; and
WHEREAS, City and Consultant desire to amend the Original Agreement to reduce the not-to-exceed amount to $5,500,000 in the aggregate; and WHEREAS, SC Commercial, LLC, DBA SC Fuels and Southern Counties Oil Company, a California Limited Partnership DBA SC Fuels are two separate legal entities; and WHEREAS, the Original Agreement included all bulk fuel deliveries be made by SC Commercial; and
WHEREAS, City and Consultant desire to amend the Original Agreement to specify the delivery volume sizes made by SC Commercial up to 3,800 gallons per each delivery; and WHEREAS, the agreement with SC Commercial, LLC, DBA SC Fuels, not-to-exceed amount to be reduced to $5,500,000; and
WHEREAS, Contractor warrants and represents that it is experienced and staffed in a manner such that it can deliver the services required of Contractor to City in accordance with the time frames and the terms and conditions of this Agreement.
City of Chula Vista - City Council
July 28, 2026 Post City Council Agenda
Resolution No.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it approves the First Amendment to Contractor Service Agreement for Motor Vehicle Fuel supply and delivery, between the City and SC Commercial, LLC.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that it authorizes and directs the City Manager to execute the contract, in the form presented, with such minor modifications as may be required or approved by the City Attorney, and directs a copy of the contract to be kept on file in the Office of the City Clerk.
Presented by Approved as to form by
Angelica Aguilar Marco A. Verdugo
Director of Public Works City Attorney
City of Chula Vista - City Council
July 28, 2026 Post City Council Agenda
Form Rev 9/30/2025
RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING A CONTRACTOR SERVICE
AGREEMENT FOR MOTOR VEHICLE FUEL SUPPLY AND
DELIVERY BETWEEN THE CITY OF CHULA VISTA AND
SOUTHERN COUNTIES OIL CO., A CALIFORNIA LIMITED
PARTNERSHIP DBA SC FUELS
WHEREAS, the City of Chula Vista (“City”) has a need for gasoline and renewable diesel for use in City vehicles and equipment on an as-neeeded basis; and WHEREAS, the City desires to procure qualified contractor to supply and deliver gasoline and renewable diesel; and
WHEREAS, on October 24, 2025, the City issued a Request for Proposal for fuel supply and delivery services; and
WHEREAS, the City received five (5) proposals from contractors interested in providing fuel supply and delivery services; and
WHEREAS, the City contractor selection committee completed its review of the proposals and determined SC Fuels (SC Commercial, LLC and Southern Counties Oil Company) as the firm to provide such services; and
WHEREAS, the City contractor selection process has been conducted in accordance with Section 2.56.070.B of the Chula Vista Municipal Code; and WHEREAS, SC Commercial, LLC, DBA SC Fuels and Southern Counties Oil Company, a California Limited Partnership DBA SC Fuels are two separate legal entities and require two separate agreements; and
WHEREAS, the City and Southern Counties Oil Company, a California Limited Partnership DBA SC Fuels (“Contractor”) desire to enter into a contractor service agreement for delivery volumes up to 7,800 gallons of diesel or 8,800 gallons of gasoline per delivery; and WHEREAS, the desired contractor service agreement shall have a three-year agreement term with two (2) one-year options to extend and the combined total of all assigned projects per the contractor service agreement not to exceed $4,500,000 in the aggregate; and
WHEREAS, Contractor warrants and represents that it is experienced and staffed in a manner such that it can deliver the services required of Contractor to City in accordance with the time frames and the terms and conditions of this Contractor Service Agreement.
City of Chula Vista - City Council
July 28, 2026 Post City Council Agenda
Resolution No.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it approves the Contractor Service Agreement for Motor Vehicle Fuel supply and delivery, between the City and Southern Counties Oil Company.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that it authorizes and directs the City Manager to execute the contract, in the form presented, with such minor modifications as may be required or approved by the City Attorney, and directs a copy of the contract to be kept on file in the Office of the City Clerk.
Presented by Approved as to form by
Angelica Aguilar Marco A. Verdugo
Director of Public Works City Attorney
City of Chula Vista - City Council
July 28, 2026 Post City Council Agenda
City of Chula Vista Amendment to Agreement No.: 2026-208 Consultant Name: SC Commercial, LLC DBA SC Fuels
Rev. 10/08/2025
First AMENDMENT
to Agreement between the
City of Chula Vista
and
SC Commercial, LLC DBA SC Fuels
For Motor Vehicle Fuel Supply and Delivery
This FIRST AMENDMENT (“Amendment”) is entered into effective as of July 28, 2026 (“Effective Date”) by and between the City of Chula Vista (“City”) and SC Commercial, LLC DBA SC Fuels (“Contractor”) (collectively, the “Parties” and each individually, a “Party”) with reference to the following facts:
RECITALS
WHEREAS, the Parties entered into Contractor Services Agreement (the “Agreement”) on July 1, 2026; and
WHEREAS, the Parties desire to amend the Agreement to reduce the not-to-exceed contract amount to $5,500,000 in the aggregate as more specifically set forth below; and WHEREAS, on October 24, 2025, City issued a Request for Proposal (RFP) for fuel supply and delivery services; and
WHEREAS, the City contractor selection committee completed its review of the proposals and determined SC Fuels (SC Commercial, LLC and Southern Counties Oil Company) as the firm to provide such services; and
WHEREAS, SC Commercial, LLC (“SC Commercial”) and Southern Counties Oil Company (“Southern Counties”), a California Limited Partnership are two separate legal entities and both DBA as SC Fuels; and
WHEREAS, on May 5, 2026, Council approved the Agreement with SC Commercial, LLC, DBA SC Fuels; and
WHEREAS, the Agreement included a three-year contract term with two (2) one-year options to extend and the combined total cost of all assigned projects set not to exceed $10,000,000 in the aggregate; and
WHEREAS, the services described in the Agreement included bulk fuel deliveries to be made by SC Commercial; and
WHEREAS, the Parties desire to amend the Agreement to specify the delivery volume sizes made by SC Commercial as more specifically set forth below.
NOW, THEREFORE, in consideration of the above recitals and the mutual obligations of the parties set forth herein, the Parties agree as follows:
City of Chula Vista - City Council
July 28, 2026 Post City Council Agenda
City of Chula Vista Amendment to Agreement No.: 2026-208 Consultant Name: SC Commercial, LLC DBA SC Fuels
Rev. 10/08/2025
1. Section 2.A. of Exhibit A of the Agreement shall be amended to include “SC Commercial, dba” at the beginning of the paragraph and shall read as follows:
“SC Commercial, dba SC Fuels shall provide bulk fuel services for Unleaded, and Renewable Diesel fuels to all City fixed fuel sites on an “as needed” basis. See Exhibit E for list of fuel site locations, fuel types and aboveground storage tanks (AST) size by gallons.”
2. Section 2.B.2 of Exhibit A of the Agreement shall be amended to include the following as a new paragraph at the end of this section:
“SC Commercial, LLC dba SC Fuels operates the commercial/fleet division throughout its marketing area. Their bobtail trucks deliver up to 3,800 gallons of fuel depending on the product (gasoline or diesel fuel). Truck compartment sizes vary. The bobtail truck deliveries will mostly service the Fire Station Fuel Stations, as the fuel storage tank capacity at those locations range from 500 gallons to 2,000 gallons. The bobtail trucks may also deliver to the Public Works Corp Yard, if needed. See Exhibit E of the original agreement for tank sizes at each location.”
3. Section 4.B. of Exhibit A of the Agreement currently states:
“Notwithstanding the foregoing, the maximum amount to be paid to the Contractor for services performed through June 30, 2029 shall not exceed $6,000,000.” The original quoted language above shall be replaced in its entirety with the following:
“Notwithstanding the foregoing, the maximum amount to be paid to the Consultant for services performed through June 30, 2029 shall not exceed $3,300,000. If the City exercises its option to extend the Agreement, the amount to be paid to the Consultant for services provided during the term of that extension shall not exceed $2,200,000. If the City exercises all additional options to extend the Agreement, the total amount to be paid to the Consultant for services provided during the initial and optional extension periods shall not exceed $5,500,000.”
4. Except as expressly provided herein, all other terms and conditions of the Original Agreement shall remain in full force and effect. Any stylization used to distinguish newly added text from previously existing text shall have no independent legal effect.
5. Each party represents that it has full right, power and authority to execute this First Amendment and to perform its obligations hereunder, without the need for any further action under its governing instruments, and the parties executing this Amendment on the behalf of such party are duly authorized agents with authority to do so. (Signature page to follow.)
City of Chula Vista - City Council
July 28, 2026 Post City Council Agenda
City of Chula Vista Amendment to Agreement No.: 2026-208 Consultant Name: SC Commercial, LLC DBA SC Fuels
Rev. 10/08/2025
SIGNATURE PAGE TO
FIRST AMENDMENT
TO
CONTRACTOR SERVICES AGREEMENT
SC COMMERCIAL, LLC DBA SC FUELS CITY OF CHULA VISTA
BY:________________________________ BY: ________________________________ Ted Brennan TIFFANY ALLEN
Vice President CITY MANAGER
APPROVED AS TO FORM
BY: _______________________________
Marco A. Verdugo
City Attorney
City of Chula Vista - City Council
July 28, 2026 Post City Council Agenda
1 City of Chula Vista Agreement No.: 2026-149
Service Provider Name: Southern Counties Oil Co., a California limited partnership DBA SC Fuels Rev. 1/14/2025
CITY OF CHULA VISTA
CONTRACTOR SERVICES AGREEMENT
WITH SOUTHERN COUNTIES OIL CO., A CA LIMITED PARTNERSHIP DBA SC FUELS
TO PROVIDE MOTOR VEHICLE FUEL SUPPLY AND DELIVERY
This Agreement is entered into effective as of July 28, 2026 (“Effective Date”) by and between the City of Chula Vista, a chartered municipal corporation (“City”) and Southern Counties Oil Co., a California limited partnership DBA SC Fuels(“Contractor”) (collectively, the “Parties” and each individually, a “Party”) with reference to the following facts:
RECITALS
WHEREAS, the City has a need for gasoline and renewable diesel for use in City vehicles and equipment on an as-neeeded basis; and
WHEREAS, the City desires to procure qualified contractor to supply and deliver gasoline and renewable diesel; and
WHEREAS, on October 24, 2025, the City issued a Request for Proposal (RFP) for fuel supply and delivery services; and
WHEREAS, the City received five (5) proposals from contractors interested in providing fuel supply and delivery services; and
WHEREAS, the City contractor selection committee completed its review of the proposals and determined SC Fuels (SC Commercial, LLC and Southern Counties Oil Company) as the firm to provide such services; and WHEREAS, the contractor selection process has been conducted in accordance with Section 2.56.070.B of the Chula Vista Municipal Code; and
WHEREAS, SC Commercial, LLC and Contractor are two separate legal entities and both DBA as SC Fuels; and
WHEREAS, the City desire to enter into an agreement with Southern Counties Oil Co., DBA SC Fuels for delivery volume up to 7,800 gallons of diesel or 8,800 gallons of gasoline per delivery for a contract total set not to exceed $4,500,000 in the aggregate; and
WHEREAS, Contractor warrants and represents that it is experienced and staffed in a manner such that it can deliver the services required of Contractor to City in accordance with the time frames and the terms and conditions of this Agreement.
(End of Recitals. Next Page Starts Obligatory Provisions.)
City of Chula Vista - City Council
July 28, 2026 Post City Council Agenda
2 City of Chula Vista Agreement No.: 2026-149
Service Provider Name: Southern Counties Oil Co., a California limited partnership DBA SC Fuels Rev. 1/14/2025
OBLIGATORY PROVISIONS
NOW, THEREFORE, in consideration of the above recitals, the covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which the Parties hereby acknowledge, City and Contractor hereby agree as follows:
1. SERVICES
1.1 Required Services. Contractor agrees to perform the services, and deliver to City the “Deliverables” (if any) described in the attached Exhibit A, incorporated into the Agreement by this reference, within the time frames set forth therein, time being of the essence for this Agreement. The services and/or Deliverables described in Exhibit A shall be referred to herein as the “Required Services.”
1.2 Reductions in Scope of Work. City may independently, or upon request from Contractor, from time to time, reduce the Required Services to be performed by the Contractor under this Agreement. Upon doing so, City and Contractor agree to meet and confer in good faith for the purpose of negotiating a corresponding reduction in the compensation associated with the reduction.
1.3 Additional Services. Subject to compliance with the City’s Charter, codes, policies, procedures and ordinances governing procurement and purchasing authority, City may request Contractor provide additional services related to the Required Services (“Additional Services”). If so, City and Contractor agree to meet and confer in good faith for the purpose of negotiating an amendment to Exhibit A, to add the Additional Services. Unless otherwise agreed, compensation for the Additional Services shall be charged and paid consistent with the rates and terms already provided therein. Once added to Exhibit A, “Additional Services” shall also become “Required Services” for purposes of this Agreement.
1.4 Standard of Care. Contractor expressly warrants and agrees that any and all Required Services hereunder shall be performed in accordance with the highest standard of care exercised by members of the profession currently practicing under similar conditions and in similar locations.
1.5 No Waiver of Standard of Care. Where approval by City is required, it is understood to be conceptual approval only and does not relieve the Contractor of responsibility for complying with all laws, codes, industry standards, and liability for damages caused by negligent acts, errors, omissions, noncompliance with industry standards, or the willful misconduct of the Contractor or its subcontractors.
1.6 Security for Performance. In the event that Exhibit A Section 5 indicates the need for Contractor to provide additional security for performance of its duties under this Agreement, Contractor shall provide such additional security prior to commencement of its Required Services in the form and on the terms prescribed on Exhibit A, or as otherwise prescribed by the City Attorney.
1.7 Compliance with Laws. In its performance of the Required Services, Contractor shall comply with any and all applicable federal, state and local laws, including the Chula Vista Municipal Code.
1.8 Business License. Prior to commencement of work, Contractor shall obtain a business license from City.
1.9 Subcontractors. Prior to commencement of any work, Contractor shall submit for City’s information and approval a list of any and all subcontractors to be used by Contractor in the performance of the Required
City of Chula Vista - City Council
July 28, 2026 Post City Council Agenda
3 City of Chula Vista Agreement No.: 2026-149
Service Provider Name: Southern Counties Oil Co., a California limited partnership DBA SC Fuels Rev. 1/14/2025
Services. Contractor agrees to take appropriate measures necessary to ensure that all subcontractors and personnel utilized by the Contractor to complete its obligations under this Agreement comply with all applicable laws, regulations, ordinances, and policies, whether federal, state, or local. In addition, if any subcontractor is expected to fulfill any responsibilities of the Contractor under this Agreement, Contractor shall ensure that each and every subcontractor carries out the Contractor’s responsibilities as set forth in this Agreement.
1.10 Term. This Agreement shall commence on the earlier to occur of the Effective Date and shall terminate, subject to Sections 6.1 and 6.2 of this Agreement, as further described in Sections 3. and 5. of Exhibit A below; provided, however, provisions which expressly survive termination shall remain in effect.
2. COMPENSATION
2.1 General. For satisfactory performance of the Required Services, City agrees to compensate Contractor in the amount(s) and on the terms set forth in Exhibit A, Section 4. Standard terms for billing and payment are set forth in this Section 2.
2.2 Detailed Invoicing. Contractor agrees to provide City with a detailed invoice for services performed each month, within thirty (30) days of the end of the month in which the services were performed, unless otherwise specified in Exhibit A. Invoicing shall begin on the first of the month following the Effective Date of the Agreement. All charges must be presented in a line item format with each task separately explained in reasonable detail. Each invoice shall include the current monthly amount being billed, the amount invoiced to date, and the remaining amount available under any approved budget. Contractor must obtain prior written authorization from City for any fees or expenses that exceed the estimated budget.
2.3 Payment to Contractor. Upon receipt of a properly prepared invoice and confirmation that the Required Services detailed in the invoice have been satisfactorily performed, City shall pay Contractor for the invoice amount within thirty (30) days. Payment shall be made in accordance with the terms and conditions set forth in Exhibit A and section 2.4, below. At City’s discretion, invoices not timely submitted may be subject to a penalty of up to five percent (5%) of the amount invoiced.
2.4 Reserved.
2.5 Reimbursement of Costs. City may reimburse Contractor’s out-of-pocket costs incurred by Contractor in the performance of the Required Services if negotiated in advance and included in Exhibit A. Unless specifically provided in Exhibit A, Contractor shall be responsible for any and all out-of-pocket costs incurred by Contractor in the performance of the Required Services.
2.6 Exclusions. City shall not be responsible for payment to Contractor for any fees or costs in excess of any agreed upon budget, rate or other maximum amount(s) provided for in Exhibit A. City shall also not be responsible for any cost: (a) incurred prior to the Effective Date; or (b) arising out of or related to the errors, omissions, negligence or acts of willful misconduct of Contractor, its agents, employees, or subcontractors.
2.7 Payment Not Final Approval. Contractor understands and agrees that payment to the Contractor or reimbursement for any Contractor costs related to the performance of Required Services does not constitute a City final decision regarding whether such payment or cost reimbursement is allowable and eligible for payment under this Agreement, nor does it constitute a waiver of any violation by Contractor of the terms of
City of Chula Vista - City Council
July 28, 2026 Post City Council Agenda
4 City of Chula Vista Agreement No.: 2026-149
Service Provider Name: Southern Counties Oil Co., a California limited partnership DBA SC Fuels Rev. 1/14/2025
this Agreement. If City determines that Contractor is not entitled to receive any amount of compensation already paid, City will notify Contractor in writing and Contractor shall promptly return such amount.
3. INSURANCE
3.1 Required Insurance. Contractor must procure and maintain, during the period of performance of Required Services under this Agreement, and for twelve months after completion of Required Services, the policies of insurance described on the attached Exhibit B, incorporated into the Agreement by this reference (the “Required Insurance”). The Required Insurance shall also comply with all other terms of this Section.
3.2 Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions relating to the Required Insurance must be disclosed to and approved by City in advance of the commencement of work.
3.3 Standards for Insurers. Required Insurance must be placed with licensed insurers admitted to transact business in the State of California with a current A.M. Best’s rating of A V or better, or, if insurance is placed with a surplus lines insurer, insurer must be listed on the State of California List of Eligible Surplus Lines Insurers (LESLI) with a current A.M. Best’s rating of no less than A X. For Workers’ Compensation Insurance, insurance issued by the State Compensation Fund is also acceptable.
3.4 Subcontractors. Contractor must include all sub-Contractors/sub-contractors as insureds under its policies and/or furnish separate certificates and endorsements demonstrating separate coverage for those not under its policies. Any separate coverage for sub-Contractors must also comply with the terms of this Agreement.
3.5 Additional Insureds. City, its officers, officials, employees, agents, and volunteers must be named as additional insureds with respect to any policy of general liability, automobile, or pollution insurance specified as required in Exhibit B or as may otherwise be specified by City’s Risk Manager.. The general liability additional insured coverage must be provided in the form of an endorsement to the Contractor’s insurance using ISO CG 2010 (11/85) or its equivalent; such endorsement must not exclude Products/Completed Operations coverage.
3.6 General Liability Coverage to be “Primary.” Contractor’s general liability coverage must be primary insurance as it pertains to the City, its officers, officials, employees, agents, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers is wholly separate from the insurance provided by Contractor and in no way relieves Contractor from its responsibility to provide insurance.
3.7 No Cancellation. No Required Insurance policy may be canceled by either Party during the required insured period under this Agreement, except after thirty days’ prior written notice to the City by certified mail, return receipt requested. Prior to the effective date of any such cancellation Contractor must procure and put into effect equivalent coverage(s).
3.8 Waiver of Subrogation. Contractor’s insurer(s) will provide a Waiver of Subrogation in favor of the City for each Required Insurance policy under this Agreement. In addition, Contractor waives any right it may have or may obtain to subrogation for a claim against City.
3.9 Verification of Coverage. Prior to commencement of any work, Contractor shall furnish City with original certificates of insurance and any amendatory endorsements necessary to demonstrate to City that
City of Chula Vista - City Council
July 28, 2026 Post City Council Agenda
5 City of Chula Vista Agreement No.: 2026-149
Service Provider Name: Southern Counties Oil Co., a California limited partnership DBA SC Fuels Rev. 1/14/2025
Contractor has obtained the Required Insurance in compliance with the terms of this Agreement. The words “will endeavor” and “but failure to mail such notice shall impose no obligation or liability of any kind upon the company, its agents, or representatives” or any similar language must be deleted from all certificates. The required certificates and endorsements should otherwise be on industry standard forms. The City reserves the right to require, at any time, complete, certified copies of all required insurance policies, including endorsements evidencing the coverage required by these specifications.
3.10 Claims Made Policy Requirements. If General Liability, Pollution and/or Asbestos Pollution Liability and/or Errors & Omissions coverage are required and are provided on a claims-made form, the following requirements also apply:
a. The “Retro Date” must be shown, and must be before the date of this Agreement or the beginning of the work required by this Agreement.
b. Insurance must be maintained, and evidence of insurance must be provided, for at least five (5) years after completion of the work required by this Agreement. c. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a “Retro Date” prior to the effective date of this Agreement, the Contractor must purchase “extended reporting” coverage for a minimum of five (5) years after completion of the work required by this Agreement. d. A copy of the claims reporting requirements must be submitted to the City for review.
3.11 Not a Limitation of Other Obligations. Insurance provisions under this section shall not be construed to limit the Contractor’s obligations under this Agreement, including Indemnity.
3.12 Additional Coverage. To the extent that insurance coverage provided by Contractor maintains higher limits than the minimums appearing in Exhibit B, City requires and shall be entitled to coverage for higher limits maintained.
4. INDEMNIFICATION
4.1. General. To the maximum extent allowed by law, Contractor shall timely and fully protect, defend, reimburse, indemnify and hold harmless City, its elected and appointed officers, agents, employees and volunteers (collectively, “Indemnified Parties”), from and against any and all claims, demands, causes of action, costs, expenses, (including reasonable attorneys’ fees and court costs), liability, loss, damage or injury, in law or equity, to property or persons, including wrongful death, in any manner arising out of or incident to any alleged acts, omissions, negligence, or willful misconduct of Contractor, its officials, officers, employees, agents, and contractors, arising out of or in connection with the performance of the Required Services, the results of such performance, or this Agreement. This indemnity provision does not include any claims, damages, liability, costs and expenses arising from the sole negligence or willful misconduct of the Indemnified Parties. Also covered is liability arising from, connected with, caused by or claimed to be caused by the active or passive negligent acts or omissions of the Indemnified Parties which may be in combination with the active or passive negligent acts or omissions of the Contractor, its employees, agents or officers, or any third party.
4.2. Modified Indemnity Where Agreement Involves Design Professional Services. Notwithstanding the forgoing, if the services provided under this Agreement are design professional services, as defined by
City of Chula Vista - City Council
July 28, 2026 Post City Council Agenda
6 City of Chula Vista Agreement No.: 2026-149
Service Provider Name: Southern Counties Oil Co., a California limited partnership DBA SC Fuels Rev. 1/14/2025
California Civil Code section 2782.8, as may be amended from time to time, the defense and indemnity obligation under Section 1, above, shall be limited to the extent required by California Civil Code section 2782.8.
4.3 Costs of Defense and Award. Included in Contractor’s obligations under this Section 4 is Contractor’s obligation to defend, at Contractor’s own cost, expense and risk, and with counsel approved in writing by City, any and all suits, actions or other legal proceedings that may be brought or instituted against one or more of the Indemnified Parties. Subject to the limitations in this Section 4, Contractor shall pay and satisfy any judgment, award or decree that may be rendered against one or more of the Indemnified Parties for any and all related legal expenses and costs incurred by any of them.
4.4. Contractor’s Obligations Not Limited or Modified. Contractor’s obligations under this Section 4 shall not be limited to insurance proceeds, if any, received by the Indemnified Parties, or by any prior or subsequent declaration by the Contractor. Furthermore, Contractor’s obligations under this Section 4 shall in no way limit, modify or excuse any of Contractor’s other obligations or duties under this Agreement.
4.5. Enforcement Costs. Contractor agrees to pay any and all costs and fees City incurs in enforcing Contractor’s obligations under this Section 4.
4.6 Survival. Contractor’s obligations under this Section 4 shall survive the termination of this Agreement.
5. FINANCIAL INTERESTS OF CONTRACTOR.
5.1 Form 700 Filing. The California Political Reform Act and the Chula Vista Conflict of Interest Code require certain government officials and Contractors performing work for government agencies to publicly disclose certain of their personal assets and income using a Statement of Economic Interests form (Form 700).
In order to assure compliance with these requirements, Contractor shall comply with the disclosure requirements identified in the attached Exhibit C, incorporated into the Agreement by this reference.
5.2 Disclosures; Prohibited Interests. Independent of whether Contractor is required to file a Form 700, Contractor warrants and represents that it has disclosed to City any economic interests held by Contractor, or its employees or subcontractors who will be performing the Required Services, in any real property or project which is the subject of this Agreement. Contractor warrants and represents that it has not employed or retained any company or person, other than a bona fide employee or approved subcontractor working solely for Contractor, to solicit or secure this Agreement. Further, Contractor warrants and represents that it has not paid or agreed to pay any company or person, other than a bona fide employee or approved subcontractor working solely for Contractor, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. Contractor further warrants and represents that no officer or employee of City, has any interest, whether contractual, non-contractual, financial or otherwise, in this transaction, the proceeds hereof, or in the business of Contractor or Contractor’s subcontractors. Contractor further agrees to notify City in the event any such interest is discovered whether or not such interest is prohibited by law or this Agreement. For breach or violation of any of these warranties, City shall have the right to rescind this Agreement without liability.
5.3 Levine Act. California Government Code section 84308, commonly known as the Levine Act, prohibits public agency officers from participating in any action related to a contract if such officer receives political contributions totaling more than $250 within the previous twelve months, and for twelve months following the date a final decision concerning the contract has been made, from the person or company
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awarded the contract. The Levine Act also requires disclosure of such contribution by a party to be awarded a specific contract. In order to assure compliance with these requirements, Contractor shall comply with the disclosure requirements identified in the attached Exhibit D, incorporated into the Agreement by this reference.
6. REMEDIES
6.1 Termination for Cause. If for any reason whatsoever Contractor shall fail to perform the Required Services under this Agreement, in a proper or timely manner, or if Contractor shall violate any of the other covenants, agreements or conditions of this Agreement (each a “Default”), in addition to any and all other rights and remedies City may have under this Agreement, at law or in equity, City shall have the right to terminate this Agreement by giving five (5) days written notice to Contractor. Such notice shall identify the Default and the Agreement termination date. If Contractor notifies City of its intent to cure such Default prior to City’s specified termination date, and City agrees that the specified Default is capable of being cured, City may grant Contractor up to ten (10) additional days after the designated termination date to effectuate such cure. In the event of a termination under this Section 6.1, Contractor shall immediately provide City any and all ”Work Product” (defined in Section 7 below) prepared by Contractor as part of the Required Services.
Such Work Product shall be City’s sole and exclusive property as provided in Section 7 hereof. Contractor may be entitled to compensation for work satisfactorily performed prior to Contractor’s receipt of the Default notice; provided, however, in no event shall such compensation exceed the amount that would have been payable under this Agreement for such work, and any such compensation shall be reduced by any costs incurred or projected to be incurred by City as a result of the Default.
6.2 Termination or Suspension for Convenience of City. City may suspend or terminate this Agreement, or any portion of the Required Services, at any time and for any reason, with or without cause, by giving specific written notice to Contractor of such termination or suspension at least fifteen (15) days prior to the effective date thereof. Upon receipt of such notice, Contractor shall immediately cease all work under the Agreement and promptly deliver all “Work Product” (defined in Section 7 below) to City. Such Work Product shall be City's sole and exclusive property as provided in Section 7 hereof. Contractor shall be entitled to receive just and equitable compensation for this Work Product in an amount equal to the amount due and payable under this Agreement for work satisfactorily performed as of the date of the termination/suspension notice plus any additional remaining Required Services requested or approved by City in advance that would maximize City’s value under the Agreement.
6.3 Waiver of Claims. In the event City terminates the Agreement in accordance with the terms of this Section, Contractor hereby expressly waives any and all claims for damages or compensation as a result of such termination except as expressly provided in this Section 6.
6.4 Administrative Claims Requirements and Procedures. No suit or arbitration shall be brought arising out of this Agreement against City unless a claim has first been presented in writing and filed with City and acted upon by City in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, as same may be amended, the provisions of which, including such policies and procedures used by City in the implementation of same, are incorporated herein by this reference. Upon request by City, Contractor shall meet and confer in good faith with City for the purpose of resolving any dispute over the terms of this Agreement.
6.5 Governing Law/Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of California. Any action arising under or relating to this Agreement shall be brought only
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in San Diego County, State of California. Contractor hereby waives any right to remove any action from San Diego County as may otherwise be permitted by California Code of Civil Procedure section 394.
6.6 Service of Process. Contractor agrees that it is subject to personal jurisdiction in California. If Contractor is a foreign corporation, limited liability company, or partnership that is not registered with the California Secretary of State, Contractor irrevocably consents to service of process on Contractor by first class mail directed to the individual and address listed under “For Legal Notice,” in section 1.B. of Exhibit A to this Agreement, and that such service shall be effective five days after mailing.
7. OWNERSHIP AND USE OF WORK PRODUCT
All reports, studies, information, data, statistics, forms, designs, plans, procedures, systems and any other materials or properties produced in whole or in part under this Agreement in connection with the performance of the Required Services (collectively “Work Product”) shall be the sole and exclusive property of City. No such Work Product shall be subject to private use, copyrights or patent rights by Contractor in the United States or in any other country without the express, prior written consent of City. City shall have unrestricted authority to publish, disclose, distribute, and otherwise use, copyright or patent, in whole or in part, any such Work Product, without requiring any permission of Contractor, except as may be limited by the provisions of the Public Records Act or expressly prohibited by other applicable laws. With respect to computer files containing data generated as Work Product, Contractor shall make available to City, upon reasonable written request by City, the necessary functional computer software and hardware for purposes of accessing, compiling, transferring and printing computer files.
8. GENERAL PROVISIONS
8.1 Amendment. This Agreement may be amended, but only in writing signed by both Parties.
8.2 Assignment. City would not have entered into this Agreement but for Contractor’s unique qualifications and traits. Contractor shall not assign any of its rights or responsibilities under this Agreement, nor any part hereof, without City’s prior written consent, which City may grant, condition or deny in its sole discretion.
8.3 Authority. The person(s) executing this Agreement for Contractor warrants and represents that they have the authority to execute same on behalf of Contractor and to bind Contractor to its obligations hereunder without any further action or direction from Contractor or any board, principle or officer thereof.
8.4 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which shall constitute one Agreement after each Party has signed such a counterpart.
8.5 Entire Agreement. This Agreement together with all exhibits attached hereto and other agreements expressly referred to herein, constitutes the entire Agreement between the Parties with respect to the subject matter contained herein. All exhibits referenced herein shall be attached hereto and are incorporated herein by reference. All prior or contemporaneous agreements, understandings, representations, warranties and statements, oral or written, are superseded.
8.6 Record Retention. During the course of the Agreement and for three (3) years following completion of the Required Services, Contractor agrees to maintain, intact and readily accessible, all data, documents, reports, records, contracts, and supporting materials relating to the performance of the Agreement, including
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accounting for costs and expenses charged to City, including such records in the possession of subcontractors/sub-Contractors.
8.7 Further Assurances. The Parties agree to perform such further acts and to execute and deliver such additional documents and instruments as may be reasonably required in order to carry out the provisions of this Agreement and the intentions of the Parties.
8.8 Independent Contractor. Contractor is and shall at all times remain as to City a wholly independent contractor. Neither City nor any of its officers, employees, agents or volunteers shall have control over the conduct of Contractor or any of Contractor’s officers, employees, or agents (“Contractor Related Individuals”), except as set forth in this Agreement. No Contractor Related Individuals shall be deemed employees of City, and none of them shall be entitled to any benefits to which City employees are entitled, including but not limited to, overtime, retirement benefits, worker's compensation benefits, injury leave or other leave benefits. Furthermore, City will not withhold state or federal income tax, social security tax or any other payroll tax with respect to any Contractor Related Individuals; instead, Contractor shall be solely responsible for the payment of same and shall hold the City harmless with respect to same. Contractor shall not at any time or in any manner represent that it or any of its Contractor Related Individuals are employees or agents of City. Contractor shall not incur or have the power to incur any debt, obligation or liability whatsoever against City, or bind City in any manner.
8.9 Notices. All notices, demands or requests provided for or permitted to be given pursuant to this Agreement must be in writing. All notices, demands and requests to be sent to any Party shall be deemed to have been properly given or served if personally served or deposited in the United States mail, addressed to such Party, postage prepaid, registered or certified, with return receipt requested, at the addresses identified in this Agreement at the places of business for each of the designated Parties as indicated in Exhibit A, or otherwise provided in writing.
8.10 Electronic Signatures. Each Party agrees that the electronic signatures, whether digital or encrypted, of the Parties included in this Agreement are intended to authenticate this writing and to have the same force and effect as manual signatures. Electronic Signature means any electronic sound, symbol, or process attached to or logically associated with a record and executed and adopted by a Party with the intent to sign such record, including facsimile or email electronic signatures, pursuant to the California Uniform Electronic Transactions Act (Cal. Civ. Code §§ 1633.1 to 1633.17) as amended from time to time. (End of page. Next page is signature page.)
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SIGNATURE PAGE
CONTRACTOR SERVICES AGREEMENT
IN WITNESS WHEREOF, by executing this Agreement where indicated below, City and Contractor agree that they have read and understood all terms and conditions of the Agreement, that they fully agree and consent to bound by same, and that they are freely entering into this Agreement as of the Effective Date.
SOUTHERN COUNTIES OIL CO., A
CALIFORNIA LIMITED PARTNERSHIP
DBA SC FUELS
CITY OF CHULA VISTA
BY:________________________________ BY: ________________________________
TED BRENNAN TIFFANY ALLEN
VICE PRESIDENT CITY MANAGER
APPROVED AS TO FORM
BY: _______________________________
Marco Verdugo
City Attorney
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EXHIBIT A
SCOPE OF WORK AND PAYMENT TERMS
1. Contact People for Contract Administration and Legal Notice A. City Contract Administration:
Alicia M. Granados
1800 Maxwell Road, Chula Vista, CA 91911
(619)397-6145
[email protected]
For Legal Notice Copy to:
City of Chula Vista
City Attorney
276 Fourth Avenue, Chula Vista, CA 91910
619-691-5037
[email protected]
B. Contractor Contract Administration:
Southern Counties Oil Co., a California limited partnership DBA SC Fuels Karen Koep, Analyst II
(714)936-8438
[email protected]
For Legal Notice Copy to:
Jonathan Grayson
20 Greenway Plaza, Suite 300, Houston, TX 77046
(865)474-3529
[email protected]
2. Required Services
A. General Description:
Southern Counties Oil Co. dba SC Fuels, shall provide bulk fuel services for Unleaded, and Renewable Diesel fuels to all City fixed fuel sites on an “as needed” basis. See Exhibit E for list of fuel site locations, fuel types and aboveground storage tanks (AST) size by gallons.
B. Detailed Description:
SC Commercial, LLC and Southern Counties Oil Co. are two separate legal entities which will each handle different delivery volumes.
SC Commercial, LLC dba SC Fuels operates the Commercial/Fleet division throughout its marketing area. Their bobtail trucks deliver up to 3,800 gallons of fuel depending on the product (gasoline or diesel fuel).
Truck compartment sizes vary. The bobtail truck deliveries will mostly service the Fire Stations Fuel Stations, as the fuel storage tank capacity at those locations range from 500 gallons to 2,000 gallons. The bobtail trucks
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may also deliver to the Public Works Corp Yard, if needed. See Exhibit E of the original agreement for tank sizes at each location.
Southern Counties Oil Co., a California Limited Partnership dba SC Fuels serves the bulk fuel deliveries receiving full transport or truck and trailer deliveries up to 7,800 gallons for diesel or 8,800 gallons of gasoline. The full transport or truck and trailer deliveries will service the Public Works Corp Yard as the fuel storage tank capacity is 12,000 gallons each (Unleaded & Diesel). Truck and trailers are not able to deliver to the Fire Stations due to size constraints.
1) Ordering: Physical inventory for all fuel types is monitored electronically. This system monitors stored fuel using the following parameters: content, volume, height, usage, and temperature. The City maintains and calibrates this system annually.
a. Designated City Staff will verify tank levels and provide authorization for fuel order and fuel delivery. Vendor shall not order fuel on City’s behalf nor schedule delivery without prior authorization by designated City staff.
b. The authorized fuel order should be fulfilled, delivered and unloaded at the City’s designated fuel site within forty-eight (48) hours of authorized order by designated City staff. c. Vendor shall provide the City quarterly and annual reports summarizing the following (at a minimum): fuel order dates, dates of delivery, quantities unloaded in gallons, and type of fuel delivered, and delivery price.
2) Delivery:
a. Vendor shall arrange for delivery of all fuel orders and perform all deliveries in a safe and professional manner, adhering to all applicable Federal, State, Local, American Society of Testing & Materials (ASTM), Department of Transportation (DOT), San Diego APCD, and Air Resources Board (ARB) regulations for the handling and supply of gasoline, diesel fuels. b. Deliveries shall be made between the hours of Monday through Friday, 7:00AM to 2:00PM to the city’s fuel sites within forty-eight (48) hours from receipt of order from authorized City staff.
c. Up to one-hour of standing time shall be allowable at no additional charge to the City for the purpose of unloading. If the vendor is unable to begin unloading fuel within one (1) hour after the scheduled arrival at the City’s fuel sites due to delays caused by City operations, demurrage charges may be assessed by vendor. Such charges shall apply in increments of one-quarter (1/4) hours. Vendor shall receive inventory reports prior to unloading fuel into the ASTs. Printouts shall be provided to designated City staff at the time of each completed delivery.
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i. Inventory should be maintained to ensure fuel deliveries bring tanks to 80–90% capacity.
ii. Dry run fees should not be incurred, as daily inventory levels are provided in advance of each delivery. Certain exceptions may apply.
d. Vendor shall provide a fuel delivery bill of lading receipt to designated City staff at the time of completed delivery.
e. Vendor warrants that each carrier/driver utilized by vendor to deliver fuel to the City’s fuel sites has the proper operating license, driver safety records, training and certifications, and insurance required to operate fuel trucks and trailers in accordance with current Federal, State and local regulations.
f. All delivery carriers/drivers shall be trained and certified in ALL required and appropriate safety measures and HAZMAT, and equipped to handle the containment, remediation, and proper clean-up of all spills up to one-hundred (100) gallons. g. Vendor shall be responsible for all spillage that may occur during transit, loading and/or unloading operations.
h. Vendor shall be held financially and legally responsible/liable for the complete containment, remediation, and disposal of all hazardous materials/waste spills that may occur during the vendors fueling, delivery and unloading operations.
i. The supplier shall immediately report any spillage to designated City staff and clean up the spillage immediately.
j. In the event of a fuel spill, the supplier is required to immediately notify designated City staff and staff at the delivery location, cover all drains in the vicinity, prevent spill from entering storm drains, and contain the spill.
k. City will supervise all fuel spill remediation and disposal of hazardous materials and/or waste.
l. Vendor shall correctly adjust fuel deliveries to be stated, billed, and paid for based on said fuel at sixty (60) degrees Fahrenheit. Corrections shall be made on all bulk deliveries for petroleum measurement tables.
m. Vendor shall provide City with a hazardous waste spill and emergency procedure at Service Agreement commencement (start date).
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n. Emergency Deliveries: Deliveries requested outside of the City’s regular working hours of 8:00 a.m. to 2:00 p.m., Monday through Friday, shall be considered emergency deliveries, unless Supplier and City have agreed in advance to a routine delivery schedule encompassing the hours outside of normal working hours. Additionally, deliveries shall not be considered emergency deliveries if the after-hours delivery is due to Supplier failure to make a routine delivery of fuel within the normal working hours or if Supplier has made prior special arrangements for a routine after-hours delivery.
The City shall endeavor to keep emergency deliveries to a minimum. However, in the event of an emergency, delivery shall be completed within twenty-four (24) hours of receipt of the request for emergency delivery. Supplier shall be allowed an additional payment for emergency deliveries. This cost shall be stated as per hour cost (plus cost of fuel), as noted in Section 4.a. Form of Compensation. Provisions of the contract shall in no way prohibit the City from making an incidental purchase from another supplier for the same commodities as listed herein and emergency purchases may be obtained from contract supplier or other sources in order to best serve the interests of the City. 3) Fuel Quality and Testing:
a. Fuels supplied by vendor shall meet current fuel industry guidelines, regulations, industry standards, including San Diego APCD and American Society of Testing & Materials (ASTM) laws, regulations, guidelines and standards.
b. Fuel supplied by vendor shall be free from contamination. c. City reserves the right to conduct spot check testing for fuel product quality assurance via an independent laboratory of City’s choice.
d. City and/or its authorized representative(s) reserves the right to test fuel quality before, during, and after unloading. Should test results show fuel contains contaminants, additives, or other particulates not within gasoline and diesel fuel industry standards/specifications; the fuel will be rejected.
e. Any aftermarket additive used shall be identified by brand and/or trade name. The manufacturer’s additive specifications shall be provided within forth eight (48) hours to City upon request. An additive, if used, shall comply with Environmental Protection Agency (EPA) regulations, and shall be compatible with the refiner’s product. f. Additives which increase emissions of sulfur and other substances proven to damage the environment and/or which are disallowed by EPA regulations will not be accepted.
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4) Invoices and Payments:
a. Vendor shall submit invoices electronically, as an attachment to an email formatted as a PDF, to designated City staff within one (1) week of delivery (max 7 days). b. Invoices shall include the following information: order date, delivery date and time, delivery location, fuel type, unloaded gallons, fuel temperature, fuel origin (supplier), transporter/hauler, and itemize all unit prices, taxes, and fees. c. Vendor shall submit monthly statements summarizing the invoices for the month to designated City staff within one (1) week of the end of the month (max 7 days). Statement shall include invoice numbers, invoice date, fuel type, billed quantity, invoice total. d. Statements are paid net 30 days from date of receipt. e. Payment shall be made for fuel quantities actually delivered, unloaded, and accepted. f. The City is exempt from Federal Fuel Excise Tax. Invoices shall not assess Federal Fuel Excise Tax to the City. If such charges are assessed and added to invoices, vendor shall correct immediately and issue a credit to the City within a week (7 days). 5) Fuel Type and Pricing:
a. City requires Unleaded and Renewable Diesel fuels.
b. City prefers to purchase unbranded bulk fuel services - gasoline and diesel based on OPIS pricing.
c. If unbranded fuel is unavailable, City will accept branded fuel. d. Base fuel costs will always be the OPIS “San Diego” PADD 5 report as of 10:00 a.m.
Eastern time on the day the fuel order is placed.
3. Term: In accordance with Section 1.10 of this Agreement, the term of this Agreement shall begin on the Effective Date and end on June 30, 2029 for completion of all Required Services unless such term is further extended pursuant to Section 5, Special Provisions below in this Exhibit A.
4. Compensation:
A. Form of Compensation
☒ Time and Materials. For performance of the Required Services by Contractor as identified in Section 2.B., above, City shall pay Contractor for the productive hours of time spent by Contractor in the performance of the Required Services, at the rates or amounts as indicated below:
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Unleaded Gasoline: Price shall apply to the low rack/terminal price in the column entitled “San Diego”, PADD 5, San Diego CARFG Ethanol 10.0%, unbranded Low Rack, in the OPIS daily report published approximately 10:00 a.m. ET
Bulk Purchase (PPG) Full Truckload (6,000+
gallons)
Less than full Truckload
(2,500 – 5,999 gallons)
Less than full Truckload
(less than 2,500 gallons)
Discount per gallon
(minus)
$-0.100 $ 0.00 $ 0.00
Mark-up per gallon
(plus)
$ 0.000 $ 0.00 $ 0.00
Delivery charge $ 0.0466 $0.16 $0.264
Renewable Diesel: Price shall apply to the low rack/terminal price in the column entitled “San Diego”, PADD 5, San Diego NESTE Renewable Diesel, unbranded Low Rack, in the OPIS daily report published approximately 10:00 a.m. ET
Bulk Purchase (PPG) Full Truckload (5,000+
gallons)
Less than full Truckload
(2,500 – 4,999 gallons)
Less than full Truckload
(less than 2,500 gallons)
Discount per gallon
(minus)
$ 0.00 $ 0.00 $ 0.00
Mark-up per gallon
(plus)
$ 0.05 $ 0.00 $ 0.00
Delivery charge $ 0.0544 $0.16 $0.264
Additional Fees:
Demurrage – charges per one-quarter (1/4) hour in excess of initial one (1) hour $40.00 Dry Run – charge per stop $100.00
Emergency Delivery Fee $0.00
B. Reimbursement of Costs
☒ None, the compensation includes all costs
Notwithstanding the foregoing, the maximum amount to be paid to the Contractor for services performed through June 30, 2029 shall not exceed $2,700,000. If the City exercises its option to extend the Agreement pursuant to Section 5., Special Provisions below in this Exhibit A, the amount to be paid to the Contractor for services provided during each extension term shall not exceed $900,000. If the City exercises all additional options to extend the Agreement, the total amount to be paid to the Contractor for services provided through June 30, 2031 shall not exceed $4,500,000.
5. Special Provisions:
☐ Permitted Sub-Contractors: None
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☐ Security for Performance: None
☒ Notwithstanding the completion date set forth in Section 3 above, City has the option to extend this Agreement for two (2) additional one-year terms, defined as one-year increments, or June 30, 2031. The City Manager or Director of Finance/Treasurer shall be authorized to exercise the extensions on behalf of the City. If the City exercises an option to extend, each extension shall be on the same terms and conditions contained herein. The City shall give written notice to Contractor of the City’s election to exercise the extension via the Notice of Exercise of Option to Extend document. Such notice shall be provided at least 30 days prior to the expiration of the term.
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EXHIBIT B
INSURANCE REQUIREMENTS
Contractor shall adhere to all terms and conditions of Section 3 of the Agreement and agrees to provide the following types and minimum amounts of insurance, as indicated by checking the applicable boxes (x).
Type of Insurance Minimum Amount Form
☒ General Liability:
Including products and
completed operations,
personal and
advertising injury
$2,000,000 per occurrence for
bodily injury, personal injury
(including death), and property
damage. If Commercial General
Liability insurance with a general
aggregate limit is used, either the
general aggregate limit must apply
separately to this Agreement or the
general aggregate limit must be
twice the required occurrence limit
Additional Insured Endorsement
or Blanket AI Endorsement for
City*
Waiver of Recovery Endorsement
Insurance Services Office Form
CG 00 01
*Must be primary and must not
exclude Products/Completed
Operations
☒ Automobile Liability $1,000,000 per accident for bodily injury, including death, and
property damage
Insurance Services Office Form
CA 00 01
Code 1-Any Auto
Code 8-Hired
Code 9-Non Owned
☒ Workers’
Compensation
Employer’s Liability
$1,000,000 each accident
$1,000,000 disease policy limit
$1,000,000 disease each employee
Waiver of Recovery Endorsement
Other Negotiated Insurance Terms: NONE
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EXHIBIT C
CONTRACTOR CONFLICT OF INTEREST DESIGNATION
The Political Reform Act1and the Chula Vista Conflict of Interest Code2(“Code”) require designated state and local government officials, including some Contractors, to make certain public disclosures using a Statement of Economic Interests form (Form 700). Once filed, a Form 700 is a public document, accessible to any member of the public. In addition, Contractors designated to file the Form 700 are also required to comply with certain ethics training requirements.3
☒ A. Contractor IS a corporation or limited liability company and is therefore EXCLUDED4from disclosure. ☐ B. Contractor is NOT a corporation or limited liability company and disclosure designation is as follows:
APPLICABLE DESIGNATIONS FOR INDIVIDUAL(S) ASSIGNED TO PROVIDE SERVICES (Category descriptions available at www.chulavistaca.gov/departments/city-clerk/conflict-of-interest-code.) Name Email Address Applicable Designation
Enter Name of Each
Individual Who Will Be
Providing Service Under the
Contract – If individuals
have different disclosure
requirements, duplicate this
row and complete separately
for each individual
Enter email address(es) ☐ A. Full Disclosure
☐ B. Limited Disclosure (select one or more
of the categories under which the
Contractor shall file):
☐ 1. ☐ 2. ☐ 3. ☐ 4. ☐ 5. ☐ 6. ☐ 7.
Justification:
☐ C. Excluded from Disclosure
1.Required Filers
Each individual who will be performing services for the City pursuant to the Agreement and who meets the definition of “Contractor,” pursuant to FPPC Regulation 18700.3, must file a Form 700.
2.Required Filing Deadlines
Each initial Form 700 required under this Agreement shall be filed with the Office of the City Clerk via the City's online filing system, NetFile, within 30 days of the approval of the Agreement. Additional Form 700 filings will be required annually on April 1 during the term of the Agreement, and within 30 days of the termination of the Agreement.
3. Filing Designation
The City Department Director will designate each individual who will be providing services to the City pursuant to the Agreement as full disclosure, limited disclosure, or excluded from disclosure, based on an analysis of the services the Contractor will provide. Notwithstanding this designation or anything in the Agreement, the Contractor is ultimately responsible for complying with FPPC regulations and filing requirements. If you have any questions regarding filing requirements, please do not hesitate to contact the City Clerk at (619)691-5041, or the FPPC at 1-866-ASK-FPPC, or (866) 275-3772 *2.
1 Cal. Gov. Code §§81000 et seq.; FPPC Regs. 18700.3 and 18704. 2 Chula Vista Municipal Code §§2.02.010-2.02.040.
3 Cal. Gov. Code §§53234, et seq.
4 CA FPPC Adv. A-15-147 (Chadwick) (2015); Davis v. Fresno Unified School District (2015) 237 Cal.App.4th 261; FPPC Reg. 18700.3 (Consultant defined as an “individual” who participates in making a governmental decision; “individual” does not include corporation or limited liability company).
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Pursuant to the duly adopted City of Chula Vista Conflict of Interest Code, this document shall serve as the written determination of the Contractor’s requirement to comply with the disclosure requirements set forth in the Code.
Completed by: Alicia Granados
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EXHIBIT D
CONSULTANT LEVINE ACT DISCLOSURE
California Government Code section 84308, commonly referred to as the Levine Act, prohibits any City of Chula Vista Officer5(“Officer”) from taking part in decisions related to a contract if the Officer received a political contribution totaling more than $250 within the previous twelve months, and for twelve months following the date a final decision concerning the contract has been made, from the person or company awarded the contract.
The Levine Act also requires disclosure of such contribution by a party to be awarded a specific contract. The Levine Act does not apply to competitively bid, labor, or personal employment contracts. ☐A. The Levine Act (Govt. Code §84308) DOES NOT apply to this Agreement. ☒B. The Levine Act (Govt. Code §84308) does apply to this Agreement and the required disclosure is as follows:
Current Officers can be located on the City of Chula Vista’s websites below:
Mayor & Council - https://www.chulavistaca.gov/departments/mayor-council City Attorney - https://www.chulavistaca.gov/departments/city-attorney/about-us Planning Commissioners – www.chulavistaca.gov/pc
Candidate for Elected Office – www.chulavistaca.gov/elections
1. Have you or your company, or any agent on behalf of you or your company, made political contributions totaling more than $250 to any Officer in the 12 months preceding the date you submitted your proposal, the date you completed this form, or the anticipated date of any Council action related to this Agreement? YES:☐ If yes, which Officer(s): Click or tap here to enter text.
NO: ☒
2. Do you or your company, or any agent on behalf of you or your company, anticipate or plan to make political contributions totaling more than $250 to any Officer in the 12 months following the finalization of this Agreement or any Council action related to this Agreement?
YES:☐ If yes, which Officer(s): Click or tap here to enter text.
NO: ☒
Answering yes to either question above may not preclude the City of Chula Vista from entering into or taking any subsequent action related to the Agreement. However, it may preclude the identified Officer(s) from participating in any actions related to the Agreement.
5 “Officer” means any elected or appointed officer of an agency, any alternate to an elected or appointed officer of an agency, and any candidate for elective office in an agency. GC § 84308
City of Chula Vista - City Council
July 28, 2026 Post City Council Agenda
22 City of Chula Vista Agreement No.: 2026-149
Service Provider Name: Southern Counties Oil Co., a California limited partnership DBA SC Fuels Rev. 1/14/2025
EXHIBIT E
CITY OF CHULA VISTA FUEL STATIONS
Fire Station #3
100 Moss Street, Chula Vista, 91910
Unleaded 2,000 Gal
Diesel 2,000 Gal
Fire Station #4
850 Paseo Ranchero, Chula Vista, 91910
Diesel Tank 1 500 Gal
Diesel Tank 2 1,000 Gal
Fire Station #5
341 Orange Ave, Chula Vista, 91911
Diesel Tank 1 500 Gal
Diesel Tank 2 1,000 Gal
Fire Station #7
1640 Santa Venetia, Chula Vista, 91913
Unleaded 1,000 Gal
Diesel 1,000 Gal
Public Works Corp Yard
1800 Maxwell Road, Chula Vista, 91911
Unleaded 12,000 Gal
Diesel 12,000 Gal
City of Chula Vista - City Council
July 28, 2026 Post City Council Agenda
v . 0 0 5 P a g e | 1
July 28, 2026
ITEM TITLE
Active Transportation Program: Authorize the Submittal of Cycle 8 Grant Application for Bayshore Bikeway - Lagoon Drive to H Street; and Confirm the City’s Assurance to Complete the Projects Report Number: 26-0206
Location: Westerly and parallel to Bay Boulevard between Lagoon Drive and H Street within the inactive railroad corridor for the Coronado Branch Line Railroad Department: Engineering
G.C. § 84308 Regulations Apply: No
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the State California Environmental Quality Act (CEQA) Guidelines. Therefore, pursuant to State CEQA Guidelines Section 15060(c)(3), no environmental review is required.
Recommended Action
Adopt a resolution authorizing the submittal of an application for the Active Transportation Program Cycle 8 grant for Bayshore Bikeway Segment 6B between Lagoon Drive and H Street and confirming the City’s commitment to complete this project and enhance the local transportation infrastructure.
SUMMARY
In the interest of obtaining grant funding toward roadway and transportation improvement projects, City staff prepared an application for the statewide Active Transportation Program (ATP) – Cycle 8 grant administered by Caltrans and the California Transportation Commission (CTC). The goal of this program is to fund projects that encourage increased use of active modes of transportation, such as biking and walking, increase safety and mobility for non-motorized vehicles and advance active transportation efforts of regional agencies to achieve greenhouse gas reduction goals. The grant application is for the Bayshore Bikeway - Lagoon Drive to H Street project.
ENVIRONMENTAL REVIEW
The proposed activity has been reviewed for compliance with the California Environmental Quality Act (CEQA), and it has been determined that the activity is not a “Project” as defined under Section 15378 of the
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State CEQA Guidelines because it will not result in a physical change in the environment. Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA.
This determination is predicated on State CEQA Guidelines Section 15004 which provides direction to lead agencies on the appropriate timing for environmental review. The future Bayshore Bikeway between Lagoon Drive and H Street (Segment 6B) project resulting from award of the Active Transportation Program (ATP) – Cycle 8 grant will require environmental review and preparation of appropriate documentation in accordance with applicable state requirements, including CEQA and applicable provisions of the City Municipal Code.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
DISCUSSION
On March 19, 2026, the CTC announced the ATP - Cycle 8 Call for Projects. The purpose of the ATP is to increase roadway usage by all active modes of transportation, giving preference to areas of high pedestrian and bicycle activity, as well as disadvantaged communities. Cycle 8 is expected to include approximately $574 million in ATP funding made up of Federal funding, State SB1, and State Highway Account (SHA) funding. The funding/programming years include the fiscal periods of 2027-28, 2028-29, 2029-30, and 2030-31.
The goal of the Bayshore Bikeway - Lagoon Drive to H Street project (Attachment 1) is to provide a critical gap segment closure of bikeway for the overall Bayshore Bikeway route that continues through Chula Vista along the 24-mile perimeter of the San Diego Bay. This project will install a Class I Separated Bikeway that provides improved safety for cyclists traveling to and from Chula Vista along the Bayshore Bikeway (from National City) and along the Sweetwater Bike Path (from Bonita). This project will also encourage travel to Chula Vista’s Bayfront and Downtown areas. The need for the project is identified in the City’s Bayfront Master Plan (https://www.portofsandiego.org/projects/chula-vista-bayfront), the Bayshore Bikeway Master Plan (https://www.sandag.org/projects-and-programs/bikeways-and-walkways/bikeway-andwalkway-projects/bayshore-bikeway) and the Chula Vista Active Transportation Plan (https://www.chulavistaca.gov/departments/engineering/active-transportation-plan) Proposed improvements include enhancing bicycle facilities by providing at least a 12’ minimum to 15’ wide Class I Separated Bikeway along the existing inactive MTS Coronado Branch Line Railroad Corridor approximately 200’ to the west of, and parallel to, Bay Boulevard. The presence of the Collins Aerospace Facility restricts any widening of Bay Boulevard along this corridor. MTS has agreed to the addition of the proposed bikeway along the railroad corridor, similar to actions they have approved in Imperial Beach and South San Diego segments. A Construction and Maintenance Agreement between the City and MTS was amended in 2021 to include the proposed improvements still needed within their railroad corridor between E Street and H Street (Attachment 2). On June 2, 2026, MTS provided the City a letter of support for the Bayshore Bikeway – Segment 6B project (Attachment 3).
Since ATP requires all projects to be completed within four years of being awarded funding, staff recommend applying for grant funding to cover preliminary engineering, right-of-way, and construction costs. If this
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grant application is approved, staff will return to Council to establish a Bayshore Bikeway capital project and appropriate the necessary funds, including the ATP grant funds.
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Council members and has found no property holdings within 1,000 feet of the boundaries of the property which is the subject of this action. Consequently, this item does not present a disqualifying real property-related financial conflict of interest under California Code of Regulations Title 2, section 18702.2(a)(7) or (8), for purposes of the Political Reform Act (Cal. Gov’t Code §87100, et seq.).
Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
There is no current-year fiscal impact to the General Fund or other funds as a result of this action. If the grant is awarded, staff will return to Council staff to establish a Bayshore Bikeway capital project and appropriate the necessary funds, including the ATP grant funds. The project is estimated to cost approximately $7.8 million, of which $7.4 million is expected to be funded through ATP grant contributions.
ONGOING FISCAL IMPACT
Should the Bayshore Bikeway project be completed, it will be maintained according to the Bayshore Bikeway Cooperative Agreement adopted by Council Resolution 9035, dated October 30, 1978. Currently, the Bike Facilities Gap Project Program (CIP Project) is a TransNet funded maintenance project that is currently used for bike facility maintenance citywide, including Bayshore Bikeway.
ATTACHMENTS
Attachment 1 - Bayshore Bikeway Between Lagoon Drive and H Street Attachment 2 - Construction & Maintenance Agreement for Bayshore Bikeway (Amendment No. 1 MTS) Attachment 3 - MTS Letter of Support for Bayshore Bikeway (Segment 6B) Staff Contact: Luis Schaar, Director of Engineering/City Engineer Patrick Moneda, Principal Civil Engineer
City of Chula Vista - City Council
July 28, 2026 Post City Council Agenda
Form Rev 9/30/2025
RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AUTHORIZING THE SUBMITTAL OF AN
ACTIVE TRANSPORTATION PROGRAM – CYCLE 8 GRANT
APPLICATION FOR THE BAYSHORE BIKEWAY SEGMENT
6B FROM LAGOON DRIVE TO H STREET PROJECT; AND
CONFIRMING THE CITY’S ASSURANCE TO COMPLETE
THE PROJECT
WHEREAS, on March 19, 2026, the California Transportation Commission (CTC) announced the Active Transportation Program (ATP) - Cycle 8 Call for Projects; and WHEREAS, the purpose of the ATP is to increase roadway usage by all active modes of transportation, giving preference to areas of high pedestrian and bicycle activity, as well as disadvantaged communities; and
WHEREAS, ATP - Cycle 8 Call for Projects is expected to include about $574 million in ATP funding made up of Federal funding, State SB1 and State Highway Account (SHA) funding; and
WHEREAS, the funding years for ATP – Cycle 8 include the 2027-28, 2028-29, 2029-30, and 2030-31 fiscal years; and
WHEREAS, if approved, an infrastructure grant application will be submitted for the Bayshore Bikeway from Lagoon Drive to H Street project.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it authorizes the submittal of the Active Transportation Program – Cycle 8 Grant Application for Bayshore Bikeway from Lagoon Drive to H Street improvements and confirms the City’s assurance to complete this project.
Presented by Approved as to form by
Luis Schaar Marco A. Verdugo
Director of Engineering & Capital Projects/ City Attorney City Engineer
City of Chula Vista - City Council
July 28, 2026 Post City Council Agenda
X X X X X X X X X X X X X X
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X X X X X X X X X X X X X X LAGOON DRIVE G STREET
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X X X X X X X X X X X X X X X X X X X X X Q:\_Projects\STM0369 - ADV Planning (Signing-Striping)\Bayshore Bikeway\CAD\STM0369_6B Exhibit.dwg Plot: Yan Liu Date: 9/29/2022 2:06:47 PM
SEE DETAIL BELOW
SEE DETAIL BELOW
CONSTRUCT CLASS 1
SHARED USE PATH
CITY OF CHULA VISTA R/W
CITY OF CHULA VISTA R/W SD&AE RAIL R/W
REMOVE OR BURY EXISTING INACTIVE RAIL
CONSTRUCT CLASS 1
SHARED USE PATH
PROTECT IN PLACE SEE DETAIL BELOW
EXISTING INACTIVE RAIL
LAGOON DRIVE TO G STREET = 1
4 MILE G STREET TO H STREET =
1 4 MILE
A
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B
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PROTECT IN PLACE
EXISTING INACTIVE RAIL
8.5' MIN FROM CL OF RAIL
PROPOSED FENCING PROPOSED FENCING
±260-360' TO BAY BOULEVARD
PROPOSED SECTION B-B (LAGOON DR TO G ST)
NOT TO SCALE
2' 5' 5' 2'
14' CLASS 1 SHARED USE PATH
± 40' SD&AE R/W
REMOVE OR BURY
EXISTING INACTIVE RAIL
4.7' - 6.8' 7.5' - 13'
EXISTING
UNNAMED ROAD
EXISTING
PARKING LOT
PROPOSED FENCING PROPOSED FENCING
ACCESS TO EXISTING
WAREHOUSE BUILDINGS
PROPOSED SECTION A-A (NORTH OF H STREET)
NOT TO SCALE
NORTH
0 GRAPHIC SCALE IN FEET
100 50 100 200
Bayshore Bikeway - Chula Vista Segment
Proposed Project Plan and Cross Section
c:\users\brigid.ahern\kh\2024 grant applications - documents\atp cycle 8\chula vista - bayshore bikeway phase 6b\design\plan sheets\chula vista - bayshore bikeway.dwg 6/11/2026
PROPOSED H ST BIKE PATH CROSSING
SCALE 1"=20'
PROPOSED G ST BIKE PATH CROSSING
SCALE 1"=20'
LAGOON DR BIKE PATH CROSSING
(TO BE CONSTRUCTED WITH SEGMENT 6A)
SCALE 1"=20'
CONSTRUCT HAWK TRAFFIC SIGNAL
(INCLUDING FOUNDATION, POLE, MAST
ARMS, SIGNALS, LUMINAIRE)
CONSTRUCT PED XING
CONSTRUCT PEDESTRIAN RAMP
CONSTRUCT HAWK TRAFFIC SIGNAL
(INCLUDING FOUNDATION, POLE, MAST
ARMS, SIGNALS, LUMINAIRE)
CONSTRUCT BIKE HAWK XING
ADA IMPROVEMENTS FOR
PEDESTRIAN RAMP
CONNECT TO EXISTING
CLASS 1 BIKE PATH
CONSTRUCT PED XING
CONSTRUCT PEDESTRIAN RAMP
(INCLUDING YIELD SIGNING &
STRIPING)
CONSTRUCT PEDESTRIAN RAMP
(INCLUDING YIELD SIGNING &
STRIPING)
BIKE HAWK XING
CONSTRUCT PEDESTRIAN RAMP
CONSTRUCT HAWK TRAFFIC SIGNAL
(INCLUDING FOUNDATION, POLE, MAST
ARMS, SIGNALS, LUMINAIRE)
CONSTRUCT HAWK TRAFFIC SIGNAL
(INCLUDING FOUNDATION, POLE, MAST
ARMS, SIGNALS, LUMINAIRE)
BAYSHORE BIKEWAY
SEGMENT 6B (PROPOSED)
SEGEMENT 6A'S
PEDESTRIAN RAMP
BAYSHORE BIKEWAY
SEGMENT 6A CONNECTION
PEDESTRIAN XING
5/22/2026
SHEET 1 OF 1
SEGEMENT 6A'S
PEDESTRIAN RAMP
FURNISH & INSTALL PEDESTRIAN SCALE LIGHTING & ELECTRICAL: CONDUIT, WIRING, VANDAL-PROOF PULLBOXES, METER PEDESTAL, & SERVICE CONNECTION
UPGRADE DRIVEWAY APRON
City of Chula Vista - City Council
July 28, 2026 Post City Council Agenda
Attachment 3
City of Chula Vista - City Council
July 28, 2026 Post City Council Agenda
City of Chula Vista - City Council
July 28, 2026 Post City Council Agenda
City of Chula Vista - City Council
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City of Chula Vista - City Council
July 28, 2026 Post City Council Agenda
City of Chula Vista - City Council
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City of Chula Vista - City Council
July 28, 2026 Post City Council Agenda
City of Chula Vista - City Council
July 28, 2026 Post City Council Agenda
1111 rjr Metropolitan
TSTransit
i
1 11111'
System
Caltrans
Division of Local Assistance
Attn: Office of State Programs
1120 N Street, MS 1
Sacramento, CA 95814
RE: Letter of Support for the City of Chula Vista Bayshore Bikeway Phase 6B Project Dear Active Transportation Program Selection Committee:
The San Diego Metropolitan Transit System ( MTS) is pleased to support the City of Chula Vista' s Cycle 8 Active Transportation Program ( ATP) grant application for a new Class I path segment that would be the last link needed to provide a continuous bike path through western Chula Vista.
Previous ATP letters of support were submitted for Cycle 5, which included the segment north of Lagoon Drive Segment 6A). The surrounding area has been redeveloped, and active transportation is a key component of this area as transit stations are less than 0. 5 miles away.
The Bayshore Bikeway is a planned 24 -mile -long bike path around San Diego Bay. As of today, more than half of the bike path has been completed. With strong community support for this facility, combined with an agreement between MTS and the City of Chula Vista to use the inactive railroad corridor, this project makes the best use of a linear inactive railroad corridor to provide the most direct route through Chula Vista for commuters and recreational riders. This project will strengthen regional mobility by connecting Chula Vista to neighboring communities, including the cities of San Diego, National City, Imperial Beach, and Coronado. The completion of this segment will help realize the vision of a continuous bikeway around San Diego Bay, expanding transportation options and encouraging greater use of active and transit modes.
Thank you for your consideration of this important project.
Sincerely,
Brent Boyd
Director of Planning & Scheduling
San Diego Metropolitan Transit System
1255 Imperial Avenue, Suite 1000, San Diego, CA 92101- 7490 • ( 619) 231- 1466 • sdmts.com a lllf
San Diego Metropolitan Transit System ( MTS) is a California public agency comprised of San Diego Transit Corp , San Diego Trolley, Inc and San Diego and Arizona Eastern Railway Company ( nonprofit public benefit corporations) MTS member agencies include the cities of Chula Vista, Coronado, El Cajon, Imperial Beach, La Mesa, Lemon Grove, National City, Poway, San Diego, Santee, and the County of San Diego MTS is also the For -Hire Vehicle administrator for multiple cities in San Diego County. , w—'\
City of Chula Vista - City Council
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July 28, 2026
ITEM TITLE
Agreement: Approve an Agreement with Chen Ryan Associates, Inc. to Perform Preliminary Engineering, Environmental Analysis, and Final Design Engineering Services for “F Street Promenade Phase 1” (CIP STL0464)
Report Number: 26-0129
Location: F Street corridor between Bay Boulevard and Broadway Department: Engineering
G.C. § 84308 Regulations Apply: No
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the State California Environmental Quality Act (CEQA) Guidelines. Therefore, pursuant to State CEQA Guidelines Section 15060(c)(3), no environmental review is required.
Recommended Action
Adopt a resolution approving a professional services agreement with Chen Ryan Associates, Inc. to perform engineering consulting services for Federal Project ATPL-5203(055): City Project F Street Promenade Phase 1 (STL0464).
SUMMARY
The “F Street Promenade Phase 1” (CIP STL0464) capital improvement project will complete Phase 1 of the F Street Promenade Streetscape Master Plan and provide improved bicycle and pedestrian facilities to connect the Chula Vista Bayfront to Downtown Chula Vista. To advance this project, the City conducted a Request for Qualifications (RFQ) solicitation process to select an engineering consultant. City staff recommends approving a professional services agreement with Chen Ryan Associates, Inc. to perform the required services.
ENVIRONMENTAL REVIEW
The proposed activity was reviewed for compliance with the California Environmental Quality Act (CEQA), and it was determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change in the environment. Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA.
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This determination is predicated on State CEQA Guidelines Section 15004 which provides direction to lead agencies on the appropriate timing for environmental review. The future F Street Promenade Phase 1 project resulting from implementation of the professional services agreement will require environmental review and preparation of appropriate documentation in accordance with applicable state requirements, including CEQA and applicable provisions of the City Municipal Code.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
DISCUSSION
The City’s F Street Promenade Master Plan outlines improved pedestrian and bicycle connectivity between the Chula Vista Bayfront to Downtown Chula Vista. The improvements are planned along F Street from Bay Boulevard to Third Avenue. The “F Street Promenade Phase 1” (CIP STL0464) project (the “Project”) will construct street and sidewalk improvements for the F Street Promenade corridor, from Bay Boulevard to Broadway. City continues to monitor and apply for funding opportunities for other Phases of the Master Plan project.
The Project will enhance pedestrian and bicycle facilities by reducing the existing vehicular travel lanes and expanding the existing 5’ wide sidewalk to create a 12’ wide multi-use pedestrian and bicycle path on both sides of the street, landscaped and lighted parkways, extended curb returns (bulb-outs) at intersections, and signing and striping. A traffic analysis will also be performed to determine intersection control at the F Street and Bay Boulevard intersection.
The Project requires engineering consulting services for design and to retain responsibility to ensure the City remains in compliance with requirements associated with grant administration as outlined in the Caltrans Local Assistance Procedures Manual (“LAPM”). The Project is eligible for grant funding through the Active Transportation Program (ATP) Cycle 6 which is administered by Caltrans. Eligible grant expenses include preliminary engineering, environmental analysis and final design engineering plans, specifications, estimate and bid quantities.
A selection committee was created to select the consultant and was comprised of various staff that are subject matter experts from the project’s functional areas.
The Project was advertised as a Request for Qualifications on October 24, 2025. Consultant Statements of Qualifications were submitted on December 22, 2025. A shortlist of three (3) consultants presented before the City’s selection committee and answered questions from the committee. The consultant selection committee evaluated and scored each firm and selected Chen Ryan Associates, Inc. as the most qualified firm.
Staff recommends that City enter into a professional services agreement with Chen Ryan Associates, Inc. from July 28, 2026 through December 27, 2030.
Chen Ryan Associates, Inc. will be compensated on a time-and-materials basis in accordance with the rates and amounts established in the agreement, with a not-to-exceed amount of $2,023,901.70 for the term of the agreement.
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Wage Statement
Chen Ryan Associates, Inc. and subcontractors shall be required to pay prevailing wage to persons employed by them for their work under this contract. The prevailing wage scales are those determined by the Director of Industrial Relations, State of California. Chen Ryan Associates, Inc. and subcontractors shall also be required to abide by the terms and requirements in the City’s Project Labor Agreement (PLA).
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Council members and found no property holdings within 1,000 feet of the boundaries of the property which is the subject of this action. Consequently, this item does not present a disqualifying real property-related financial conflict of interest under California Code of Regulations Title 2, section 18702.2(a)(7) or (8), for purposes of the Political Reform Act (Cal. Gov’t Code §87100, et seq.).
Staff is not independently aware and has not been informed by any City Council member of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
Sufficient funds are available in the CIP STL0464 project balance to fund the professional services agreement and associated City staff costs required to complete the preliminary engineering and final design engineering and associated environmental analysis and clearance work. Therefore, there is no current-year fiscal impact to the Active Transportation Grant Fund, the Western Transportation Development Impact Fee (WTDIF) Fund, or the TransNet Fund as a result of this action. Project costs are summarized below:
FUNDS REQUIRED FOR CONSULTANT SERVICES & CITY STAFF COSTS (STL0464) Consultant Contract Amount $2,023,901.70
City Staff Costs $312,714.30
TOTAL FUNDS REQUIRED FOR CONSULTANT SERVICES & STAFF COSTS $2,336,616.00 AVAILABLE FUNDING FOR CONSULTANT SERVICES & CITY STAFF COSTS (STL0464) Active Transportation Grant (Acct: STL0464-736957)
Project Approval & Environmental Document (“PA&ED”) Phase $40,000.00 Plans, Specifications, and Estimate (“PS&E”) Phase $1,295,000.00 WTDIF Fund (Acct: STL0464-590923-INFRASTR) $1,000,000.00 TransNet Fund (Acct: STL0464-227) $1,616.00
TOTAL FUNDS AVAILABLE FOR CONSULTANT SERVICES & STAFF COSTS $2,336,616.00
ONGOING FISCAL IMPACT
The proposed professional services agreement will have no ongoing fiscal impact. All associated costs are covered within CIP STL0464 project budget, with no additional funding required.
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July 28, 2026 Post City Council Agenda
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ATTACHMENTS
1. Consultant Services Agreement with Chen Ryan Associates, Inc.
Staff Contact:
Luis Schaar, Director of Engineering & Capital Projects / City Engineer Rosina Constanza Flores, Assistant Director of Engineering Nolan Huelsman, Principal Civil Engineer
José Serrato, Senior Civil Engineer
Charisse Phillips, Associate Civil Engineer
City of Chula Vista - City Council
July 28, 2026 Post City Council Agenda
Form Rev 9/30/2025
RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING A CONSULTANT SERVICES
AGREEMENT BETWEEN THE CITY AND CHEN RYAN
ASSOCIATES, INC. TO PROVIDE PROFESSIONAL
ENGINEERING CONSULTANT SERVICES
WHEREAS, the City of Chula Vista Capital Improvement Program (“CIP”) Project STL0464 (“Project”) requires professional engineering services for the design and construction support for street and sidewalk improvements for the F Street Promenade Phase 1 corridor, from Bay Boulevard to Broadway; and
WHEREAS, the Project is eligible for funding through the Federal Active Transportation Program (“ATP”), through the California Department of Transportation Division of Local Assistance (“Caltrans”); and
WHEREAS, the City requires Professional Engineering Services in order to design the Project to ensure compliance with requirements associated with ATP grant funding administered by Caltrans; and
WHEREAS, on October 24, 2025, the City solicited a Request for Qualifications (“RFQ”) for Professional Engineering Services in accordance with Caltrans Local Assistance Procedures Manual (“LAPM”) Chapter 10; and
WHEREAS, the City received seven (7) Statements of Qualifications from engineering consulting firms; and
WHEREAS, the City formed a Consultant Selection Committee (“Committee”) that included the contract administrator and subject matter experts from the Project’s functional areas; and WHEREAS, the Committee reviewed and evaluated the Statements of Qualifications and three (3) firms were selected for interviews January 28, 2026; and WHEREAS, after the interviews of three (3) firms, the Committee has determined Chen Ryan Associates, Inc. as the most qualified proposer; and WHEREAS, staff recommends award of a contract to Chen Ryan Associates, Inc. to provide services required for the Project which include preliminary engineering, environmental analysis, and final design engineering plans, specifications, estimates and bid quantities, bidding, construction, and closeout support for the Project; and WHEREAS, this Agreement is subject to Prevailing Wages and the City’s Project Labor Agreement; and
City of Chula Vista - City Council
July 28, 2026 Post City Council Agenda
Resolution No.
WHEREAS, Consultant warrants and represents that it is experienced and staffed in a manner such that it can deliver the services required of Consultant to City in accordance with the time frames and the terms and conditions of this Agreement, which shall begin July 28, 2026 and end on December 27, 2030.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it approves the Consultant Services Agreement between the City and Chen Ryan Associates, Inc. to provide Professional Engineering Consultant Services for the F Street Promenade Phase 1 Project (STL0464) in the form presented, with such minor modifications as may be required or approved by the City Attorney, a copy of which shall be kept on file in the Office of the City Clerk, and authorizes and directs the City Manager to execute same in the amount not to exceed $2,023,901.70.
Presented by Approved as to form by
Luis Schaar Marco A. Verdugo
Director of Engineering and Capital Projects/ City Attorney City Engineer
City of Chula Vista - City Council
July 28, 2026 Post City Council Agenda
City of Chula Vista Agreement No.: 2026- 214
Service Provider Name: Chen Ryan Associates, Inc. Rev. 1.20.2026
CITY OF CHULA VISTA
CONSULTANT SERVICES AGREEMENT
WITH CHEN RYAN ASSOCIATES, INC.
TO PROVIDE PROFESSIONAL ENGINEERING SERVICES
This Agreement is entered into effective as of July 28, 2026 (“ Effective Date”) by and between the City of Chula Vista, a chartered municipal corporation (“ City”) and Chen Ryan Associates, Inc., A California Corporation Consultant”) ( collectively, the “ Parties” and, individually, a “ Party”) with reference to the following facts:
RECITALS
WHEREAS, the City of Chula Vista Capital Improvement Program (“ CIP”) Project STL0464 (“ Project”) requires professional engineering services for the design and construction support for street and sidewalk improvements for the F Street Promenade corridor, from Bay Boulevard to Broadway; and WHEREAS, the Project is eligible for funding through the Federal Active Transportation Program ATP”), through the California Department of Transportation Division of Local Assistance (“ Caltrans”); and WHEREAS, the City requires Professional Engineering Services in order to design the Project and ensure compliance with requirements associated with ATP grant funding administered by Caltrans; and WHEREAS, in order to procure these services and in order to use approved ATP funds for this work, on October 24, 2025, the City solicited a Request for Qualifications (“ RFQ”) for Professional Engineering Services in accordance with the Caltrans Local Assistance Procedures Manual (“ LAPM”) Chapter 10; and WHEREAS, the City received seven ( 7) Statements of Qualifications from engineering consulting firms; and
WHEREAS, the City formed a Consultant Selection Committee (“ Committee”) that included the contract administrator and subject matter experts from the Project’ s functional areas; and WHEREAS, the Committee reviewed and evaluated the Statements of Qualifications and three (3) firms were selected for interviews January 28, 2026; and
WHEREAS, after the interviews of three ( 3) firms, the Committee has determined Chen Ryan Associates, Inc. as the most qualified proposer; and
WHEREAS, Staff recommends award of a contract to Chen Ryan Associates, Inc. to provide services required for the Project which include preliminary engineering, environmental analysis, and final design engineering plans, specifications, estimates and bid quantities, bidding, construction, and closeout support for the Project; and
WHEREAS, this Agreement is subject to Prevailing Wages and the City’ s Project Labor Agreement; and WHEREAS, Consultant warrants and represents that it is experienced and staffed in a manner such that it can deliver the services required of Consultant to City in accordance with the time frames and the terms and conditions of this Agreement.
End of Recitals. Next Page Starts Obligatory Provisions.]
City of Chula Vista - City Council
July 28, 2026 Post City Council Agenda
City of Chula Vista Agreement No.: 2026- 214
Service Provider Name: Chen Ryan Associates, Inc. Rev. 1.20.2026
OBLIGATORY PROVISIONS
NOW, THEREFORE, in consideration of the above recitals, the covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which the Parties hereby acknowledge, City and Consultant hereby agree as follows:
1. SERVICES
1.1 Required Services. Consultant agrees to perform the services, and deliver to City the “ Deliverables” ( if any) described in the attached Exhibit A, incorporated into the Agreement by this reference, within the time frames set forth therein, time being of the essence for this Agreement. The services and/ or Deliverables described in Exhibit A shall be referred to herein as the “ Required Services.”
1.2 Reductions in Scope of Work. City may independently, or upon request from Consultant, from time to time, reduce the Required Services to be performed by the Consultant under this Agreement. Upon doing so, City and Consultant agree to meet and confer in good faith for the purpose of negotiating a corresponding reduction in the compensation associated with the reduction.
1.3 Additional Services. Subject to compliance with the City’ s Charter, codes, policies, procedures and ordinances governing procurement and purchasing authority, City may request Consultant provide additional services related to the Required Services (“ Additional Services”). If so, City and Consultant agree to meet and confer in good faith for the purpose of negotiating an amendment to Exhibit A, to add the Additional Services. Unless otherwise agreed, compensation for the Additional Services shall be charged and paid consistent with the rates and terms already provided therein. Once added to Exhibit A, “Additional Services” shall also become “ Required Services” for purposes of this Agreement.
1.4 Standard of Care. Consultant expressly warrants and agrees that any and all Required Services hereunder shall be performed in accordance with the highest standard of care exercised by members of the profession currently practicing under similar conditions and in similar locations.
1.5 No Waiver of Standard of Care. Where approval by City is required, it is understood to be conceptual approval only and does not relieve the Consultant ofresponsibility for complying with all laws, codes, industry standards, and liability for damages caused by negligent acts, errors, omissions, noncompliance with industry standards, or the willful misconduct of the Consultant or its subcontractors.
1.6 Security for Performance. In the event that Exhibit A Section 5 indicates the need for Consultant to provide additional security for performance of its duties under this Agreement, Consultant shall provide such additional security prior to commencement of its Required Services in the form and on the terms prescribed on Exhibit A, or as otherwise prescribed by the City Attorney.
1.7 Compliance with Laws. In its performance of the Required Services, Consultant shall comply with any and all applicable federal, state and local laws, including the Chula Vista Municipal Code, and the Caltrans Local Assistance Procedures Manual Exhibit 10-R which is attached and incorporated herein as Exhibit H. Should any language in the LAPM conflict with this Agreement, the more stringent provision will control.
1.8 Business License. Prior to commencement of work, Consultant shall obtain a business license from City.
City of Chula Vista - City Council
July 28, 2026 Post City Council Agenda
City of Chula Vista Agreement No.: 2026- 214
Service Provider Name: Chen Ryan Associates, Inc. Rev. 1.20.2026
1.9 Subcontractors. Prior to commencement of any work, Consultant shall submit for City’ s information and approval a list of any and all subcontractors to be used by Consultant in the performance of the Required Services. Consultant agrees to take appropriate measures necessary to ensure that all subcontractors and personnel utilized by the Consultant to complete its obligations under this Agreement comply with all applicable laws, regulations, ordinances, and policies, whether federal, state, or local. In addition, if any subcontractor is expected to fulfill any responsibilities of the Consultant under this Agreement, Consultant shall ensure that each and every subcontractor carries out the Consultant’ s responsibilities as set forth in this Agreement.
1.10 Term. This Agreement shall commence on the earlier to occur of the Effective Date or Consultant’ s commencement of the Required Services hereunder, and shall terminate, subject to Sections 6.1 and 6.2 of this Agreement, when the Parties have complied with all their obligations hereunder; provided, however, provisions which expressly survive termination shall remain in effect.
1.11 Prevailing Wage Compliance. Consultant and subcontractors shall comply with the state of California’ s prevailing wage requirements in accordance with California Labor Code, and all Federal, State, and local laws and ordinances applicable to persons employed by them for public works in a covered work classification. The City has ascertained that general prevailing wage rates may be applicable to all or a portion of the work to be performed for the Required Services. This includes work performed during the design and preconstruction phases of construction including, but not limited to Construction/ Building Inspectors, Land Surveying, and Field Soils and Material Testers. When payment of prevailing wages applies to the Required Services the wage rates shall be reimbursed at the minimum rates set by the State of California’ s Department of Industrial Relations ( DIR). The DIR’ s prevailing wage determinations are available online at https:// www.dir.ca.gov/OPRL/ PWD/. Consultant and its subcontractors shall post a copy of the prevailing rates of wages at each applicable job site and shall make them available to any interested party upon request. The date of the City’ s request for a cost proposal for a task order under this Agreement shall be used to determine which published prevailing wage rate applies to the task order. All published wage rates and all predetermined wage rate increases known at the date of the City’ s request for a cost proposal shall apply.
1.12 Department of Industrial Relations ( DIR) Registration. Pursuant to Labor Code Section 1725. 5, the City requires, as applicable, Consultant and subcontractors of any tier to be registered with the DIR for the term of this Agreement.
1.13 Project Labor Agreement. Consultant and subcontractors, regardless of tier, performing any work under this Agreement as defined by California Labor Code section 1720, shall abide by the terms and requirements identified in the attached Exhibit E, Project Labor Agreement ( PLA), incorporated into the Agreement by this reference. These terms and requirements include but are not limited to the following:
a. Letter of Assent. Consultant and subcontractors agree to be bound by the PLA by submitting a Letter of Assent ( PLA Exhibit A) to the City’ s Project Labor Coordinator. Consultant shall submit its Letter of Assent as a condition of Agreement award and all applicable subcontractors shall submit their Letters of Assent before starting any covered work on a project.
b. Pre- Job Conference. Consultant and subcontractors shall conduct a pre-job conference with the applicable Union( s) at least 14 calendar days before starting any covered work. Consultant is responsible for facilitating and scheduling its own pre-job conference and for facilitating, scheduling, and ensuring that all applicable subcontractors conduct a pre-job conference.
City of Chula Vista - City Council
July 28, 2026 Post City Council Agenda
City of Chula Vista Agreement No.: 2026- 214
Service Provider Name: Chen Ryan Associates, Inc. Rev. 1.20.2026 Certified Payroll Records. Consultant and subcontractors shall submit weekly certified payroll records including but not limited to a Statement of Compliance signed under penalty of perjury, reflecting the wages of all employees engaged in the work, using the City’ s web- based labor compliance software.
2. COMPENSATION
2.1 General. For satisfactory performance of the Required Services, City agrees to compensate Consultant in the amount( s) and on the terms set forth in Exhibit A, Section 4. Standard terms for billing and payment are set forth in this Section 2.
2.2 Detailed Invoicing. Consultant agrees to provide City with a detailed invoice for services performed each month, within thirty ( 30) days of the end of the month in which the services were performed, unless otherwise specified in Exhibit A. Invoicing shall begin on the first of the month following the Effective Date of the Agreement. All charges must be presented in a line item format with each task separately explained in reasonable detail. Each invoice shall include the current monthly amount being billed, the amount invoiced to date, and the remaining amount available under any approved budget. Consultant must obtain prior written authorization from City for any fees or expenses that exceed the estimated budget.
2.3 Payment to Consultant. Upon receipt of a properly prepared invoice and confirmation that the Required Services detailed in the invoice have been satisfactorily performed, City shall pay Consultant for the invoice amount within thirty (30) days. Payment shall be made in accordance with the terms and conditions set forth in Exhibit A and section 2.4, below. At City’ s discretion, invoices not timely submitted may be subject to a penalty of up to five percent ( 5%) of the amount invoiced.
2.4 Retention Policy. City shall retain ten percent ( 10%) of the amount due for Required Services detailed on each invoice ( the “ holdback amount”). Upon City review and determination of Project Completion, the holdback amount will be issued to Consultant.
2.5 Reimbursement of Costs. City may reimburse Consultant’ s out- of-pocket costs incurred by Consultant in the performance of the Required Services if negotiated in advance and included in Exhibit A. Unless specifically provided in Exhibit A, Consultant shall be responsible for any and all out- of-pocket costs incurred by Consultant in the performance of the Required Services.
2.6 Exclusions. City shall not be responsible for payment to Consultant for any fees or costs in excess of any agreed upon budget, rate or other maximum amount( s) provided for in Exhibit A. City shall also not be responsible for any cost: ( a) incurred prior to the Effective Date; or (b) arising out of or related to the errors, omissions, negligence or acts of willful misconduct of Consultant, its agents, employees, or subcontractors.
2.7 Payment Not Final Approval. Consultant understands and agrees that payment to the Consultant or reimbursement for any Consultant costs related to the performance of Required Services does not constitute a City final decision regarding whether such payment or cost reimbursement is allowable and eligible for payment under this Agreement, nor does it constitute a waiver of any violation by Consultant of the terms of this Agreement. If City determines that Consultant is not entitled to receive any amount of compensation already paid, City will notify Consultant in writing and Consultant shall promptly return such amount.
3. INSURANCE
3.1 Required Insurance. Consultant must procure and maintain, during the period of performance of Required Services under this Agreement, and for twelve months after completion of Required Services, the
City of Chula Vista - City Council
July 28, 2026 Post City Council Agenda
City of Chula Vista Agreement No.: 2026- 214
Service Provider Name: Chen Ryan Associates, Inc. Rev. 1.20.2026 policies of insurance described on the attached Exhibit B, incorporated into the Agreement by this reference the “ Required Insurance”). The Required Insurance shall also comply with all other terms of this Section.
3.2 Deductibles and Self- Insured Retentions. Any deductibles or self-insured retentions relating to the Required Insurance must be disclosed to and approved by City in advance of the commencement of work.
3.3 Standards for Insurers. Required Insurance must be placed with licensed insurers admitted to transact business in the State of California with a current A.M. Best’ s rating of A V or better, or, if insurance is placed with a surplus lines insurer, insurer must be listed on the State of California List of Eligible Surplus Lines Insurers ( LESLI) with a current A.M. Best’ s rating of no less than A X. For Workers’ Compensation Insurance, insurance issued by the State Compensation Fund is also acceptable.
3.4 Subcontractors. Consultant must include all sub- Consultants/ sub- contractors as insureds under its policies and/ or furnish separate certificates and endorsements demonstrating separate coverage for those not under its policies. Any separate coverage for sub- Consultants must also comply with the terms of this Agreement.
3.5 Additional Insureds. City, its officers, officials, employees, agents, and volunteers must be named as additional insureds with respect to any policy of general liability, automobile, or pollution insurance specified as required in Exhibit B or as may otherwise be specified by City’ s Risk Manager.. The general liability additional insured coverage must be provided in the form of an endorsement to the Consultant’ s insurance using ISO CG 2010 ( 11/85) or its equivalent; such endorsement must not exclude Products/ Completed Operations coverage.
3.6 General Liability Coverage to be “ Primary.” Consultant’ s general liability coverage must be primary insurance as it pertains to the City, its officers, officials, employees, agents, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers is wholly separate from the insurance provided by Consultant and in no way relieves Consultant from its responsibility to provide insurance.
3.7 No Cancellation. No Required Insurance policy may be canceled by either Party during the required insured period under this Agreement, except after thirty days’ prior written notice to the City by certified mail, return receipt requested. Prior to the effective date of any such cancellation Consultant must procure and put into effect equivalent coverage( s).
3.8 Waiver of Subrogation. Consultant’ s insurer( s) will provide a Waiver of Subrogation in favor of the City for each Required Insurance policy under this Agreement. In addition, Consultant waives any right it may have or may obtain to subrogation for a claim against City.
3.9 Verification of Coverage. Prior to commencement of any work, Consultant shall furnish City with original certificates of insurance and any amendatory endorsements necessary to demonstrate to City that Consultant has obtained the Required Insurance in compliance with the terms of this Agreement. The words will endeavor” and “ but failure to mail such notice shall impose no obligation or liability of any kind upon the company, its agents, or representatives” or any similar language must be deleted from all certificates. The required certificates and endorsements should otherwise be on industry standard forms. The City reserves the right to require, at any time, complete, certified copies of all required insurance policies, including endorsements evidencing the coverage required by these specifications.
City of Chula Vista - City Council
July 28, 2026 Post City Council Agenda
City of Chula Vista Agreement No.: 2026- 214
Service Provider Name: Chen Ryan Associates, Inc. Rev. 1.20.2026
3.10 Claims Made Policy Requirements. If General Liability, Pollution and/ or Asbestos Pollution Liability and/ or Errors & Omissions coverage are required and are provided on a claims- made form, the following requirements also apply:
a. The “ Retro Date” must be shown, and must be before the date of this Agreement or the beginning of the work required by this Agreement.
b. Insurance must be maintained, and evidence of insurance must be provided, for at least five ( 5) years after completion of the work required by this Agreement. c. If coverage is canceled or non- renewed, and not replaced with another claims- made policy form with a “ Retro Date” prior to the effective date of this Agreement, the Consultant must purchase “ extended reporting” coverage for a minimum of five (5) years after completion of the work required by this Agreement. d. A copy of the claims reporting requirements must be submitted to the City for review.
3.11 Not a Limitation of Other Obligations. Insurance provisions under this section shall not be construed to limit the Consultant’ s obligations under this Agreement, including Indemnity.
1.12 Additional Coverage. To the extent that insurance coverage provided by Consultant maintains higher limits than the minimums appearing in Exhibit B, City requires and shall be entitled to coverage for higher limits maintained.
4. INDEMNIFICATION
4.1. General. To the maximum extent allowed by law, Consultant shall timely and fully protect, defend, reimburse, indemnify and hold harmless City, its elected and appointed officers, agents, employees and volunteers ( collectively, “ Indemnified Parties”), from and against any and all claims, demands, causes of action, costs, expenses, ( including reasonable attorneys’ fees and court costs), liability, loss, damage or injury, in law or equity, to property or persons, including wrongful death, in any manner arising out of or incident to any alleged acts, omissions, negligence, or willful misconduct of Consultant, its officials, officers, employees, agents, and contractors, arising out of or in connection with the performance of the Required Services, the results of such performance, or this Agreement. This indemnity provision does not include any claims, damages, liability, costs and expenses arising from the sole negligence or willful misconduct of the Indemnified Parties. Also covered is liability arising from, connected with, caused by or claimed to be caused by the active or passive negligent acts or omissions of the Indemnified Parties which may be in combination with the active or passive negligent acts or omissions of the Consultant, its employees, agents or officers, or any third party.
4.2. Modified Indemnity Where Agreement Involves Design Professional Services. Notwithstanding the forgoing, if the services provided under this Agreement are design professional services, as defined by California Civil Code section 2782. 8, as may be amended from time to time, the defense and indemnity obligation under Section 1, above, shall be limited to the extent required by California Civil Code section 2782. 8.
4.3 Costs of Defense and Award. Included in Consultant’ s obligations under this Section 4 is Consultant’ s obligation to defend, at Consultant’ s own cost, expense and risk, and with counsel approved in writing by City, any and all suits, actions or other legal proceedings that may be brought or instituted against one or more of the Indemnified Parties. Subject to the limitations in this Section 4, Consultant shall pay and satisfy any
City of Chula Vista - City Council
July 28, 2026 Post City Council Agenda
City of Chula Vista Agreement No.: 2026- 214
Service Provider Name: Chen Ryan Associates, Inc. Rev. 1.20.2026 judgment, award or decree that may be rendered against one or more of the Indemnified Parties for any and all related legal expenses and costs incurred by any of them.
4.4. Consultant’ s Obligations Not Limited or Modified. Consultant’ s obligations under this Section 4 shall not be limited to insurance proceeds, if any, received by the Indemnified Parties, or by any prior or subsequent declaration by the Consultant. Furthermore, Consultant’ s obligations under this Section 4 shall in no way limit, modify or excuse any of Consultant’ s other obligations or duties under this Agreement.
4.5. Enforcement Costs. Consultant agrees to pay any and all costs and fees City incurs in enforcing Consultant’ s obligations under this Section 4.
4.6 Survival. Consultant’ s obligations under this Section 4 shall survive the termination of this Agreement.
5. FINANCIAL INTERESTS OF CONSULTANT.
5.1 Form 700 Filing. The California Political Reform Act and the Chula Vista Conflict of Interest Code require certain government officials and Consultants performing work for government agencies to publicly disclose certain of their personal assets and income using a Statement of Economic Interests form (Form 700).
In order to assure compliance with these requirements, Consultant shall comply with the disclosure requirements identified in the attached Exhibit C, incorporated into the Agreement by this reference.
5.2 Disclosures; Prohibited Interests. Independent of whether Consultant is required to file a Form 700, Consultant warrants and represents that it has disclosed to City any economic interests held by Consultant, or its employees or subcontractors who will be performing the Required Services, in any real property or project which is the subject of this Agreement. Consultant warrants and represents that it has not employed or retained any company or person, other than a bona fide employee or approved subcontractor working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants and represents that it has not paid or agreed to pay any company or person, other than a bona fide employee or approved subcontractor working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. Consultant further warrants and represents that no officer or employee of City, has any interest, whether contractual, non- contractual, financial or otherwise, in this transaction, the proceeds hereof, or in the business of Consultant or Consultant’ s subcontractors. Consultant further agrees to notify City in the event any such interest is discovered whether or not such interest is prohibited by law or this Agreement. For breach or violation of any of these warranties, City shall have the right to rescind this Agreement without liability.
5.3 Levine Act. California Government Code section 84308, commonly known as the Levine Act, prohibits public agency officers from participating in any action related to a contract if such officer receives political contributions totaling more than $ 500 within the previous twelve months, and for twelve months following the date a final decision concerning the contract has been made, from the person or company awarded the contract. The Levine Act also requires disclosure of such contribution by a party to be awarded a specific contract. In order to assure compliance with these requirements, Consultant shall comply with the disclosure requirements identified in the attached Exhibit D, incorporated into the Agreement by this reference.
6. REMEDIES
6.1 Termination for Cause. If for any reason whatsoever Consultant shall fail to perform the Required Services under this Agreement, in a proper or timely manner, or if Consultant shall violate any of the other covenants, agreements or conditions of this Agreement ( each a “ Default”), in addition to any and all other
City of Chula Vista - City Council
July 28, 2026 Post City Council Agenda
City of Chula Vista Agreement No.: 2026- 214
Service Provider Name: Chen Ryan Associates, Inc. Rev. 1.20.2026 rights and remedies City may have under this Agreement, at law or in equity, City shall have the right to terminate this Agreement by giving five (5) days written notice to Consultant. Such notice shall identify the Default and the Agreement termination date. If Consultant notifies City of its intent to cure such Default prior to City’ s specified termination date, and City agrees that the specified Default is capable of being cured, City may grant Consultant up to ten ( 10) additional days after the designated termination date to effectuate such cure. In the event of a termination under this Section 6.1, Consultant shall immediately provide City any and all ” Work Product” ( defined in Section 7 below) prepared by Consultant as part of the Required Services.
Such Work Product shall be City’ s sole and exclusive property as provided in Section 7 hereof. Consultant may be entitled to compensation for work satisfactorily performed prior to Consultant’ s receipt of the Default notice; provided, however, in no event shall such compensation exceed the amount that would have been payable under this Agreement for such work, and any such compensation shall be reduced by any costs incurred or projected to be incurred by City as a result of the Default.
6.2 Termination or Suspension for Convenience of City. City may suspend or terminate this Agreement, or any portion of the Required Services, at any time and for any reason, with or without cause, by giving specific written notice to Consultant of such termination or suspension at least fifteen ( 15) days prior to the effective date thereof. Upon receipt of such notice, Consultant shall immediately cease all work under the Agreement and promptly deliver all “Work Product” ( defined in Section 7 below) to City. Such Work Product shall be City' s sole and exclusive property as provided in Section 7 hereof. Consultant shall be entitled to receive just and equitable compensation for this Work Product in an amount equal to the amount due and payable under this Agreement for work satisfactorily performed as of the date of the termination/ suspension notice plus any additional remaining Required Services requested or approved by City in advance that would maximize City’ s value under the Agreement.
6.3 Waiver of Claims. In the event City terminates the Agreement in accordance with the terms of this Section, Consultant hereby expressly waives any and all claims for damages or compensation as a result of such termination except as expressly provided in this Section 6.
6.4 Administrative Claims Requirements and Procedures. No suit or arbitration shall be brought arising out of this Agreement against City unless a claim has first been presented in writing and filed with City and acted upon by City in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, as same may be amended, the provisions of which, including such policies and procedures used by City in the implementation of same, are incorporated herein by this reference. Upon request by City, Consultant shall meet and confer in good faith with City for the purpose of resolving any dispute over the terms of this Agreement.
6.5 Governing Law/Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of California. Any action arising under or relating to this Agreement shall be brought only in San Diego County, State of California. Consultant hereby waives any right to remove any action from San Diego County as may otherwise be permitted by California Code of Civil Procedure section 394.
6.6 Service of Process. Consultant agrees that it is subject to personal jurisdiction in California. If Consultant is a foreign corporation, limited liability company, or partnership that is not registered with the California Secretary of State, Consultant irrevocably consents to service of process on Consultant by first class mail directed to the individual and address listed under “ For Legal Notice,” in section 1.B. of Exhibit A to this Agreement, and that such service shall be effective five days after mailing.
City of Chula Vista - City Council
July 28, 2026 Post City Council Agenda
City of Chula Vista Agreement No.: 2026- 214
Service Provider Name: Chen Ryan Associates, Inc. Rev. 1.20.2026
7. OWNERSHIP AND USE OF WORK PRODUCT
All reports, studies, information, data, statistics, forms, designs, plans, procedures, systems and any other materials or properties produced in whole or in part under this Agreement in connection with the performance of the Required Services ( collectively “ Work Product”) shall be the sole and exclusive property of City. No such Work Product shall be subject to private use, copyrights or patent rights by Consultant in the United States or in any other country without the express, prior written consent of City. City shall have unrestricted authority to publish, disclose, distribute, and otherwise use, copyright or patent, in whole or in part, any such Work Product, without requiring any permission of Consultant, except as may be limited by the provisions of the Public Records Act or expressly prohibited by other applicable laws. With respect to computer files containing data generated as Work Product, Consultant shall make available to City, upon reasonable written request by City, the necessary functional computer software and hardware for purposes of accessing, compiling, transferring and printing computer files.
8. GENERAL PROVISIONS
8.1 Amendment. This Agreement may be amended, but only in writing signed by both Parties.
8.2 Assignment. City would not have entered into this Agreement but for Consultant’ s unique qualifications and traits. Consultant shall not assign any of its rights or responsibilities under this Agreement, nor any part hereof, without City’ s prior written consent, which City may grant, condition or deny in its sole discretion.
8.3 Authority. The person( s) executing this Agreement for Consultant warrants and represents that they have the authority to execute same on behalf of Consultant and to bind Consultant to its obligations hereunder without any further action or direction from Consultant or any board, principle or officer thereof.
8.4 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which shall constitute one Agreement after each Party has signed such a counterpart.
8.5 Entire Agreement. This Agreement together with all exhibits attached hereto and other agreements expressly referred to herein, constitutes the entire Agreement between the Parties with respect to the subject matter contained herein. All exhibits referenced herein shall be attached hereto and are incorporated herein by reference. All prior or contemporaneous agreements, understandings, representations, warranties and statements, oral or written, are superseded.
8.6 Record Retention. During the course of the Agreement and for three ( 3) years following completion of the Required Services, Consultant agrees to maintain, intact and readily accessible, all data, documents, reports, records, contracts, and supporting materials relating to the performance of the Agreement, including accounting for costs and expenses charged to City, including such records in the possession of subcontractors/ sub- Consultants.
8.7 Further Assurances. The Parties agree to perform such further acts and to execute and deliver such additional documents and instruments as may be reasonably required in order to carry out the provisions of this Agreement and the intentions of the Parties.
8.8 Independent Contractor. Consultant is and shall at all times remain as to City a wholly independent contractor. Neither City nor any of its officers, employees, agents or volunteers shall have control over the conduct of Consultant or any of Consultant’ s officers, employees, or agents (“ Consultant Related
City of Chula Vista - City Council
July 28, 2026 Post City Council Agenda
City of Chula Vista Agreement No.: 2026- 214
Service Provider Name: Chen Ryan Associates, Inc. Rev. 1.20.2026 Individuals”), except as set forth in this Agreement. No Consultant Related Individuals shall be deemed employees of City, and none of them shall be entitled to any benefits to which City employees are entitled, including but not limited to, overtime, retirement benefits, worker' s compensation benefits, injury leave or other leave benefits. Furthermore, City will not withhold state or federal income tax, social security tax or any other payroll tax with respect to any Consultant Related Individuals; instead, Consultant shall be solely responsible for the payment of same and shall hold the City harmless with respect to same. Consultant shall not at any time or in any manner represent that it or any of its Consultant Related Individuals are employees or agents of City. Consultant shall not incur or have the power to incur any debt, obligation or liability whatsoever against City, or bind City in any manner.
8.9 Notices. All notices, demands or requests provided for or permitted to be given pursuant to this Agreement must be in writing. All notices, demands and requests to be sent to any Party shall be deemed to have been properly given or served if personally served or deposited in the United States mail, addressed to such Party, postage prepaid, registered or certified, with return receipt requested, at the addresses identified in this Agreement at the places of business for each of the designated Parties as indicated in Exhibit A, or otherwise provided in writing.
8.10 Electronic Signatures. Each Party agrees that the electronic signatures, whether digital or encrypted, of the Parties included in this Agreement are intended to authenticate this writing and to have the same force and effect as manual signatures. Electronic Signature means any electronic sound, symbol, or process attached to or logically associated with a record and executed and adopted by a Party with the intent to sign such record, including facsimile or email electronic signatures, pursuant to the California Uniform Electronic Transactions Act (Cal. Civ. Code §§ 1633. 1 to 1633. 17) as amended from time to time.
End of page. Next page is signature page.)
City of Chula Vista - City Council
July 28, 2026 Post City Council Agenda
City of Chula Vista Agreement No.: 2026- 214
Service Provider Name: Chen Ryan Associates, Inc. Rev. 1.20.2026
SIGNATURE PAGE
CONSULTANT SERVICES AGREEMENT
IN WITNESS WHEREOF, by executing this Agreement where indicated below, City and Consultant agree that they have read and understood all terms and conditions of the Agreement, that they fully agree and consent to bound by same, and that they are freely entering into this Agreement as of the Effective Date.
CITY OF CHULA VISTA
BY: ________________________________
TIFFANY ALLEN
CITY MANAGER
APPROVED AS TO FORM
BY: _______________________________
Marco A. Verdugo
City Attorney
City of Chula Vista - City Council
July 28, 2026 Post City Council Agenda
City of Chula Vista Agreement No.: 2026- 214
Service Provider Name: Chen Ryan Associates, Inc. Rev. 1.20.2026
EXHIBIT A
SCOPE OF WORK AND PAYMENT TERMS
1. Contact People for Contract Administration and Legal Notice A. City Contract Administration:
Nolan Huelsman, P.E.
276 4th Avenue, Chula Vista, CA 91910
619) 409- 5976
nhuelsman@chulavistaca. gov
For Legal Notice Copy to:
City of Chula Vista
City Attorney
276 Fourth Avenue, Chula Vista, CA 91910
619- 691- 5037
CityAttorney@chulavistaca. gov
B. Consultant Contract Administration:
Chen Ryan Associates, Inc.
3900 Fifth Avenue, Suite 310, San Diego, CA 92103
619) 549- 5076
bgarretson@cramobility. com
For Legal Notice Copy to:
Chen Ryan Associates, Inc.
3900 Fifth Avenue, Suite 310, San Diego, CA 92103
619) 549- 5076
[email protected]
2. Required Services
A. General Description:
Preliminary Engineering, Environmental Analysis and Clearance ( PA& ED), Final Design ( PS& E), and Design Support during Construction for F Street Promenade Phase 1 (Bay Boulevard to Broadway) B. Detailed Description:
The Project consists of proposed street and sidewalk improvements for the F Street Promenade corridor, from Bay Boulevard to Broadway. The project will enhance pedestrian and bicycle facilities by reducing the existing vehicular travel lanes and expanding the existing 5’ wide sidewalk to create a 12’ wide multi- use pedestrian and bicycle path on both sides of the street, landscaped and lighted parkways, extended curb returns at intersections, and signing and striping. Per the City’ s initial grant application and F Street Promenade Streetscape Master Plan ( see Attachment 1), a traffic roundabout was proposed at the intersection of F Street and Bay Boulevard to improve traffic flow and connect to the Bayshore Bikeway, Sweetwater Bicycle Path and Promenade via westbound Lagoon Drive. However, as part of the project’ s scope, the Consultant shall conduct a traffic analysis to determine intersection control at the F Street and Bay Boulevard intersection based on the recent Bayfront redevelopment project and the current circulation conditions.
City of Chula Vista - City Council
July 28, 2026 Post City Council Agenda
City of Chula Vista Agreement No.: 2026- 214
Service Provider Name: Chen Ryan Associates, Inc. Rev. 1.20.2026 The proposed improvements will be Phase 1 of the F Street Promenade Streetscape Master Plan ( dated January 2018). Ultimately the project will connect the City’ s downtown Third Avenue Village, Civic Center, unused railroad bridge over I-5, regional Bayshore Bikeway, Bayside Park, and Bayfront development.
See attached Exhibit F for detailed scope of services.
3. Term: In accordance with Section 1.10 of this Agreement, the term of this Agreement shall begin July 28, 2026 and end on December 27, 2030 for completion of all Required Services.
4. Compensation:
A. Form of Compensation
Time and Materials. For performance of the Required Services by Consultant as identified in Section 2.B., above, City shall pay Consultant for the productive hours of time spent by Consultant in the performance of the Required Services, at the rates or amounts as indicated below:
See attached Exhibit G for Applicable Hourly Rates.
B. Reimbursement of Costs
Invoiced or agreed- upon amounts as identified in Exhibit G.
Notwithstanding the foregoing, the maximum amount to be paid to the Consultant for services performed through December 27, 2030 shall not exceed $ 2,023, 901.70.
5. Special Provisions:
Permitted Sub- Consultants:
AirX Utility Surveyors, Inc.
Alyson Consulting
Ardurra
Clark Land Resources
Graphic Solutions
Helix Environmental Planning
Roundabotix
Schmidt Design Group
TY Lin
Verdantas
Vista Environmental Consulting
City of Chula Vista - City Council
July 28, 2026 Post City Council Agenda
City of Chula Vista Agreement No.: 2026- 214
Service Provider Name: Chen Ryan Associates, Inc. Rev. 1.20.2026
EXHIBIT B
INSURANCE REQUIREMENTS
Consultant shall adhere to all terms and conditions of Section 3 of the Agreement and agrees to provide the following types and minimum amounts of insurance, as indicated by checking the applicable boxes ( x).
Type of Insurance Minimum Amount Form
General Liability:
Including products and
completed operations,
personal and
advertising injury
2,000, 000 per occurrence for
bodily injury, personal injury
including death), and property
damage. If Commercial General
Liability insurance with a general
aggregate limit is used, either the
general aggregate limit must apply
separately to this Agreement or the
general aggregate limit must be
twice the required occurrence limit
Additional Insured Endorsement
or Blanket AI Endorsement for
City*
Waiver of Recovery Endorsement
Insurance Services Office Form
CG 00 01
Must be primary and must not
exclude Products/ Completed
Operations
Automobile Liability $ 1,000,000 per accident for bodily injury, including death, and
property damage
Insurance Services Office Form
CA 00 01
Code 1-Any Auto
Code 8-Hired
Code 9-Non Owned
Workers’
Compensation
Employer’ s Liability
1,000, 000 each accident
1,000, 000 disease policy limit
1,000, 000 disease each employee
Waiver of Recovery Endorsement
Professional Liability
Errors & Omissions)
1,000, 000 each occurrence
2,000, 000 aggregate
Other Negotiated Insurance Terms: NONE
City of Chula Vista - City Council
July 28, 2026 Post City Council Agenda
City of Chula Vista Agreement No.: 2026- 214
Service Provider Name: Chen Ryan Associates, Inc. Rev. 1.20.2026
EXHIBIT C
CONSULTANT CONFLICT OF INTEREST DESIGNATION
The Political Reform Act1 and the Chula Vista Conflict of Interest Code 2 (“ Code”) require designated state and local government officials, including some Consultants, to make certain public disclosures using a Statement of Economic Interests form ( Form 700). Once filed, a Form 700 is a public document, accessible to any member of the public. In addition, Consultants designated to file the Form 700 are also required to comply with certain ethics training requirements. 3
A. Consultant will not exert influence over the official or contracting decisions of City and is therefore EXCLUDED4 from disclosure.
B. Consultant WILL exert influence over the official or contracting decisions of City and their disclosure designation is as follows:
APPLICABLE DESIGNATIONS FOR INDIVIDUAL( S) ASSIGNED TO PROVIDE SERVICES Category descriptions available at www. chulavistaca. gov/ departments/ city-clerk/ conflict- of-interest- code .) Name Email Address Applicable Designation
Enter Name of Each Individual
Who Will Be Providing Service
Under the Contract – If
individuals have different
disclosure requirements,
duplicate this row and
complete separately for each
individual
Enter email address( es) A. Full Disclosure
B. Limited Disclosure ( select one or more of
the categories under which the Contractor shall
file):
1. 2. 3. 4. 5. 6. 7.
Justification:
C. Excluded from Disclosure
1. Required Filers
Each individual who will be performing services for the City pursuant to the Agreement and who meets the definition of “Consultant,” pursuant to FPPC Regulation 18700.3, must file a Form 700.
2. Required Filing Deadlines
Each initial Form 700 required under this Agreement shall be filed withthe Office ofthe City Clerk via the City's online filing system, NetFile, within 30 days of the approval of the Agreement. Additional Form 700 filings will be required annually on April 1 during the term of the Agreement, and within 30 days of the termination of the Agreement.
3. Filing Designation
The City Department Director will designate each individual who will be providing services to the City pursuant to the Agreement as full disclosure, limited disclosure, or excluded from disclosure, based on an analysis of the services the Consultant will provide. Notwithstanding this designation or anything in the Agreement, the Consultant is ultimately responsible for complying with FPPC regulations and filing requirements. If you have any questions regarding filing requirements, please do not hesitate to contact the City Clerk at ( 619) 691- 5041, or the FPPC at 1-866-ASK- FPPC, or 866) 275- 3772 * 2.
Pursuant to the duly adopted City of Chula Vista Conflict of Interest Code, this document shall serve as the written determination of the Contractor’ s requirement to comply with the disclosure requirements set forth in the Code.
Completed by: José Serrato
1 Cal. Gov. Code §§ 81000 et seq.; FPPC Regs. 18700. 3 and 18704. 2 Chula Vista Municipal Code §§ 2.02.010- 2.02.040.
3 Cal. Gov. Code §§ 53234, et seq.
4 CA FPPC Adv. A-15- 147 ( Chadwick) ( 2015); Davis v. Fresno Unified School District ( 2015) 237 Cal.App. 4th 261; FPPC Reg. 18700. 3 (Consultant defined as an “ individual” who participates in making a governmental decision; “ individual” does not include corporation or limited liability company).
City of Chula Vista - City Council
July 28, 2026 Post City Council Agenda
City of Chula Vista Agreement No.: 2026- 214
Service Provider Name: Chen Ryan Associates, Inc. Rev. 1.20.2026
EXHIBIT D
CONSULTANT LEVINE ACT DISCLOSURE
California Government Code section 84308, commonly referred to as the Levine Act, prohibits any City of Chula Vista Officer5 (“ Officer”) from taking part in decisions related to a contract if the Officer received a political contribution totaling more than $ 500 within the previous twelve months, and for twelve months following the date a final decision concerning the contract has been made, from the person or company awarded the contract.
The Levine Act also requires disclosure of such contribution by a party to be awarded a specific contract. The Levine Act does not apply to competitively bid, labor, or personal employment contracts; contracts valued at under $ 50,000; contracts where no party receives financial compensation; or contracts between two or more agencies.
A. The Levine Act (Govt. Code § 84308) DOES NOT apply to this Agreement.
B. The Levine Act ( Govt. Code § 84308) does apply to this Agreement and the required disclosure is as follows:
Current Officers can be located on the City of Chula Vista’ s websites below:
Mayor & Council - https:// www. chulavistaca. gov/ departments/ mayor- council City Attorney - https:// www. chulavistaca. gov/ departments/ city-attorney/ about- us Planning Commissioners – www. chulavistaca. gov/ pc
Candidate for Elected Office – www. chulavistaca. gov/ elections
1. Have you or your company, or any agent on behalf of you or your company, made political contributions totaling more than $500 to any Officer in the 12 months preceding the date you submitted your proposal, the date you completed this form, or the anticipated date of any Council action related to this Agreement? YES: If yes, which Officer( s): Click or tap here to enter text.
NO:
2. Do you or your company, or any agent on behalf of you or your company, anticipate or plan to make political contributions totaling more than $500 to any Officer in the 12 months following the finalization of this Agreement or any Council action related to this Agreement?
YES: If yes, which Officer( s): Click or tap here to enter text.
NO:
Answering yes to either question above may not preclude the City of Chula Vista from entering into or taking any subsequent action related to the Agreement. However, it may preclude the identified Officer( s) from participating in any actions related to the Agreement.
5 “ Officer” means any elected or appointed officer of an agency, any alternate to an elected or appointed officer of an agency, and any candidate for elective office in an agency. GC § 84308
City of Chula Vista - City Council
July 28, 2026 Post City Council Agenda
City of Chula Vista Agreement No.: 2026- 214
Service Provider Name: Chen Ryan Associates, Inc. Rev. 1.20.2026
EXHIBIT E
PROJECT LABOR AGREEMENT
City of Chula Vista - City Council
July 28, 2026 Post City Council Agenda
PROJECT LABOR AGREEMENT
by and among
THE CITY OF CHULA VISTA,
a California charter city and municipal corporation,
and
THE SAN DIEGO COUNTY
BUILDING AND CONSTRUCTION TRADES COUNCIL, AFL-CIO
and
THE SIGNATORY CRAFT COUNCILS AND LOCAL UNIONS
SIGNING THIS AGREEMENT
Effective April 15, 2025
ACN 2025- 278
R2025- 056
Docusign Envelope ID: F2B1A451- 4B15-4EEA-B618-612264FE68C1
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i
TABLE OF CONTENTS
Page
Article 1. Definitions .......................................................................................................................... 2 Article 2. Scope of the Agreement ...................................................................................................... 4
2.1 General ................................................................................................................... 4
2.2 Funding-Based Exception ...................................................................................... 4
2.3 Included Work ....................................................................................................... 5
2.4 Excluded Work ...................................................................................................... 6
2.5 Awarding of Contracts ........................................................................................... 7
2.6 Master Labor Agreements ..................................................................................... 8
2.7 Instrument Calibration and Loop Checking Exception.......................................... 9 Article 3. Duration and Applicability of Agreement .......................................................................... 9
3.1 Duration ................................................................................................................. 9
3.2 Limits to Applicability ........................................................................................... 9
3.3 Binding on Signatories Only .................................................................................. 9
3.4 Other City Work .................................................................................................... 9
3.5 Completed Covered Projects ................................................................................. 9
3.6 Final Termination .................................................................................................. 9 Article 4. Union Recognition and Employment ................................................................................ 10
4.1 Recognition .......................................................................................................... 10
4.2 Contractor Selection of Employees ..................................................................... 10
4.3 Referral Procedures .............................................................................................. 10 Article 5. Equal Employment Opportunity and Nondiscrimination ................................................. 10
5.1 Nondiscrimination in Referral, Employment, and Contracting ........................... 10
5.2 Disabled Veterans and Small Business Enterprise Program ................................ 11
5.3 Core Employees ................................................................................................... 11
5.4 Employment of Local Hires and Disadvantaged Workers ................................... 12
5.5 Time for Referral ................................................................................................. 13
5.6 Lack of Referral Procedure .................................................................................. 13
5.7 City to Monitor Compliance ................................................................................ 13
5.8 Union Membership .............................................................................................. 13
5.9 Foremen ............................................................................................................... 14
5.10 Skilled and Trained Workforce ............................................................................ 14 Article 6. Union Access and Stewards .............................................................................................. 14
6.1 Access to Covered Project Sites .......................................................................... 14
6.2 Stewards ............................................................................................................... 14
6.3 Steward Layoff/Discharge ................................................................................... 15
6.4 Employees on Non-Covered Projects .................................................................. 15 Article 7. Wages and Benefits .......................................................................................................... 15
7.1 Wages .................................................................................................................. 15
7.2 Benefits ................................................................................................................ 15
7.3 Wage Premiums ................................................................................................... 16
7.4 Compliance with Prevailing Wage Laws ............................................................. 16 Article 8. Work Stoppages and Lockouts ......................................................................................... 16
8.1 No Work Stoppages or Disruptive Activity ......................................................... 16
8.2 Employee Violations............................................................................................ 17 Docusign Envelope ID: F2B1A451- 4B15-4EEA-B618-612264FE68C1
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8.3 Standing to Enforce ............................................................................................. 17
8.4 Expiration of Master Labor Agreements ............................................................. 17
8.5 No Lockouts ......................................................................................................... 17
8.6 Best Efforts to End Violations ............................................................................. 17
8.7 Arbitration Procedure .......................................................................................... 18
8.8 Liquidated Damages ............................................................................................ 19
8.9 Payroll and Benefit Delinquencies....................................................................... 20 Article 9 Work Assignments and Jurisdictional Disputes................................................................ 21
9.1 No Jobsite Disruption .......................................................................................... 21
9.2 Jurisdictional Disputes ......................................................................................... 21
9.3 Failure to Comply ................................................................................................ 21
9.4 Pre-Job Conference .............................................................................................. 21 Article 10 Management Rights .......................................................................................................... 21
10.1 Contractor and City Rights .................................................................................. 21
10.2 Specific City Rights ............................................................................................. 22
10.3 Use of Materials ................................................................................................... 22
10.4 Special Equipment, Warranties, and Guaranties .................................................. 22 Article 11 Grievances and Disputes ................................................................................................... 23
11.1 Cooperation and Harmony on Covered Project Sites .......................................... 23
11.2 Processing Grievances ......................................................................................... 23
11.3 Limitations on Use of Procedures ........................................................................ 25
11.4 Notice ................................................................................................................... 25 Article 12 Compliance ....................................................................................................................... 25
12.1 Compliance with All Laws .................................................................................. 25 Article 13 Safety and Protection of Person and Property .................................................................. 25
13.1 Safety ................................................................................................................... 25
13.2 Drug and Alcohol Testing Policy ........................................................................ 25
13.3 Inspection ............................................................................................................. 25 Article 14 Travel, Subsistence, and Parking ...................................................................................... 25
14.1 Applicability ........................................................................................................ 25 Article 15 Apprentices ....................................................................................................................... 26
15.1 Importance of Training ........................................................................................ 26
15.2 Use of Apprentices............................................................................................... 26 Article 16 Work Opportunities Program ............................................................................................ 26
16.1 Intent .................................................................................................................... 26 Article 17 Helmets to Hardhats .......................................................................................................... 27
17.1 Veterans Entry into Building and Construction Trades ....................................... 27
17.2 Integrated Database .............................................................................................. 27 Article 18 Pre-Job Conference ........................................................................................................... 27
18.1 Pre-Job Conference Required .............................................................................. 27
18.2 Failure to Conduct ............................................................................................... 28
18.3 Project Labor Coordinator Participation .............................................................. 28 Article 19 Labor/Management and Cooperation ............................................................................... 28
19.1 Labor/Management Collaboration Meetings ....................................................... 28 Article 20 Legal Action ..................................................................................................................... 28
20.1 Legal Action ........................................................................................................ 28 Docusign Envelope ID: F2B1A451- 4B15-4EEA-B618-612264FE68C1
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Article 21 Savings and Severability ................................................................................................... 29
21.1 Savings Clause ..................................................................................................... 29
21.2 Effect of Injunctions or Other Court Orders ........................................................ 29 Article 22 Waiver ............................................................................................................................. 29
22.1 Waiver .................................................................................................................. 29 Article 23 Amendments ..................................................................................................................... 29
23.1 Amendments ........................................................................................................ 29 Article 24 Miscellaneous Provisions ................................................................................................. 29
24.1 Construction ......................................................................................................... 29 Docusign Envelope ID: F2B1A451- 4B15-4EEA-B618-612264FE68C1
City of Chula Vista - City Council
July 28, 2026 Post City Council Agenda
1 PROJECT LABOR AGREEMENT
This PROJECT LABOR AGREEMENT (“PLA” or the “Agreement”) is entered into by and between the City of Chula Vista, a chartered municipal corporation (the “ City”), the San Diego County Building and Construction Trades Council, AFL-CIO (the “ Trades Council”), and the signatory Craft Unions (the “ Union(s)”) ( each a “ Party”, together, the “ Parties”), effective as of this 15th day of April, 2025 (the “ Effective Date”).
RECITALS
A. WHEREAS, the City spends approximately $45 million, on average, each year on public works capital improvement projects (“ CIPs”) critical to the safety, economic sustainability, and quality of life of its residents; and
B. WHEREAS, the City’s public works CIPs typically incur construction costs between 150,000 and $5,000,000; and
C. WHEREAS, each year, the City enters intoapproximately 5 public works CIP construction contracts with a construction cost of $1,000,000 or more at the time of award (the “ Covered Projects”); and
D. WHEREAS, City desires the completion of the Covered Projects in a professional, safe, efficient, and economical manner, without undue delay or work stoppages; and E. WHEREAS, thesuccessful completion ofthe Covered Projects is oftheutmost importance to the City; and
F. WHEREAS, large numbers of workers of various skills will be required intheperformance of the construction work on the Covered Projects, including workers affiliated with and/or represented by the Unions; and
G. WHEREAS, it is recognized that on construction projects with multiple contractors and bargaining units on the job site at the same time over an extended period of time, the potential for work disruption is substantial without an overriding commitment to maintain continuity of work; and H. WHEREAS, the Parties agree that by establishing and stabilizing wages, hours, and working conditions for the workers employed on the Covered Projects, a satisfactory, continuous, and harmonious relationship will exist among labor and management that will lead to the efficient and economical completion of the Covered Projects; and
I. WHEREAS, in recognition of the special needs of the Covered Projects and to maintain a spirit of harmony, cooperative labor-management relations, peace, and stability during the term of this Agreement, the Parties agree to establish effective and binding methods for the settlement of all misunderstandings, disputes, and grievances without any strikes, slowdowns, work interruptions, or disruptions of the Covered Projects, and the Contractors agree not to engage in any lockout; and J. WHEREAS, the City places high priority on the development of comprehensive programs for the recruitment, training, and employment of disadvantaged workers and recognizes the ability of Apprenticeship Programs to provide meaningful and sustainable careers in the building and construction Docusign Envelope ID: F2B1A451- 4B15-4EEA-B618-612264FE68C1
City of Chula Vista - City Council
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2 industry. The Parties will encourage Local Residents and Disadvantaged Workers to participate in Covered Projects through programs and procedures jointly developed to prepare and encourage such individuals for entranceinto Apprenticeship Programs and formal employment onthe Covered Projects through thereferral programs sponsored and/or supported by the Parties to this Agreement; and K. WHEREAS, it is further understood that the City shall administer and enforce the obligations of this Agreement to ensure that the benefits of this Agreement flow to all signatory Parties, craft persons working under it, and Local Residents.
AGREEMENT
NOW THEREFORE, in consideration of the above Recitals, and the covenants contained herein, the Parties agree as follows:
ARTICLE 1. DEFINITIONS
Unless the context otherwise requires, the terms defined in this Article 1 shall, for all purposes of this Agreement, have the meanings herein specified, to be equally applicable to both the singular and plural forms of any of the terms herein defined.
1.1 Agreement. “ Agreement” shall have the meaning given to such term in the preamble.
1.2 Applicable Prevailing Wage Laws. “ Applicable Prevailing Wage Laws” means the prevailing wage laws, regulations, and determinations applicable to a Covered Project pursuant to the State of California Labor Code and/or the Davis-Bacon Act and related federal laws.
1.3 Apprentice. “ Apprentice” means a craft employee registered and participating in an Apprenticeship Program for the entire time they are employed on a Covered Project.
1.4 Apprenticeship Program. “Apprenticeship Program” means an apprenticeship program (i) approved by the State of California’ s Division of Apprenticeship Standards; ( ii) registered with the U.S.
Department of Labor; or (iii) registered with a State Apprenticeship Agency granted authority by the U.S.
Department of Labor to register apprenticeship programs for federal purposes, pursuant to 29 CFR Part 29.
1.5 Building and Construction Trades Department. “ Building and Construction Trades Department” means the Building and Construction Trades Department of the American Federation of Labor-Congress of International Industrial Organizations.
1.6 Center. “ Center” means the Center for Military Recruitment, Assessment and Veterans Employment, a 501(c)3 nonprofit organization.
1.7 City. “City” shall have the meaning given to such term in the preamble.
1.8 City Manager. “ City Manager” means the City Manager of the City of Chula Vista, or designee.
1.9 Contractor. “ Contractor” means any individual, firm, partnership, corporation, owner operator, consultant, or combination thereof, including joint ventures, which has entered into a Covered Contract, including the Prime Contractor and subcontractors of any tier, performing Covered Work.
1.10 Cooperative Purchasing Agreement. “ Cooperative Purchasing Agreement” means a contract, arrangement or agreement to purchase supplies, equipment or services through a cooperative purchasing program with the state of California, the County of San Diego, the City of San Diego, or any Docusign Envelope ID: F2B1A451- 4B15-4EEA-B618-612264FE68C1
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July 28, 2026 Post City Council Agenda
3 other public agency, including a joint exercise of powers authority, school district, or water authority within the United States; provided that such items are purchased through a competitive process that the City’s Purchasing Agent determines to be consistent with good purchasing practices, as authorized by Chula Vista Municipal Code Section 2.56.140.
1.11 Core Employee. “ Core Employee” means an employee of a Contractor that is not a Union member.
1.12 Covered Contract. “ Covered Contract” means a prime contract or subcontract awarded for performance of the Covered Work, or an individual job order constituting a Covered Project.
1.13 Covered Project. “ Covered Project” shall have the meaning given to such term in Recital C.
1.14 Covered Project Site. "Covered Project Site” means the location or locations at which the Covered Work will be performed.
1.15 Covered Work. “ Covered Work” means work in furtherance of a Covered Project, other than work excluded pursuant to specific exemptions set forth in this Agreement.
1.16 Disadvantaged Area. “ Disadvantaged Area” means a zip code that contains a census tract for which the average household income is no more than 80 percent of the average household income for the Metropolitan Statistical Area (as designed by the U.S. Office of Management and Budget) in which the census tract is located.
1.17 Disadvantaged Worker. “ Disadvantaged Worker” means: an individual Domiciled in a Disadvantaged Areathat a) has nohighschool diploma or general education diploma (GED), b) is homeless or has been homeless within the last year, c) is a former foster youth, d) is a custodial single parent, e) is experiencing protracted unemployment (defined as receiving unemployment benefits for at least three (3) months), f) is a current recipient of government cash or food assistance benefits, g) has a documented income at or below 100 percent of the Federal Poverty Level, or g) is formerly incarcerated; or a Veteran residing anywhere.
1.18 Domiciled. “ Domiciled” shall have the meaning set forth in Section 349(b) of the California Election Code, indicating a fixed address with intent of continued residency.
1.19 Emergency Work. “ Emergency Work” means work performed for the purpose of preventing or alleviating circumstances, then existingor imminent, that are likely tocause danger topersons or property or theinterruption of services provided by the City or other public service entities, as determined in the City’s sole and absolute discretion.
1.20 Holiday. “ Holiday” means the City-observed holidays established in Chula Vista Municipal Code Section 10.08.110, as it may be amended from time to time. If any holiday listed falls on a Saturday, then the Saturday and the preceding Friday are both legal holidays. Ifthe holiday should fall on a Sunday, then the Sunday and the following Monday are both legal holidays.
1.21 Joint Labor-Management Apprenticeship Program. “ Joint Labor-Management Apprenticeship Program” means aJoint Labor-Management Apprenticeship Program approved by the State of California’ s Division of Apprenticeship Standards as provided for in the Master Labor Agreement(s).
1.22 Letter of Assent. “ Letter of Assent” means the document that each Contractor (of any tier) must sign and submit to the City before beginning any Covered Work, which formally binds such Docusign Envelope ID: F2B1A451- 4B15-4EEA-B618-612264FE68C1
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4 Contractor(s) to adherence to all the forms, requirements, and conditions of this Agreement in the form of which is attached hereto as “ Exhibit A”.
1.23 Local Hires. “ Local Hires” means individuals who are employed by Contractors as craft employees to perform Covered Work and have a priority in being dispatched by the respective Unions.
1.24 Local Resident. “ Local Resident” means either a resident of the City or a resident of the County of San Diego, excluding the City, that has been identified as a Disadvantaged Worker.
1.25 Lockout. “ Lockout” means a Contractor’ s exclusion of employees in order to secure collective bargaining advantage, and does not refer to the discharge, termination, or layoff of employees by the Contractor for any reason in the exercise of rights pursuant to any provision of this Agreement, or any other agreement. Does not include City’s decision to stop, suspend, or discontinue any Covered Project or any portion thereof for any reason.
1.26 Master Labor Agreement. “ Master Labor Agreement” means the local collective bargaining agreements of the signatory Unions having geographic and trade jurisdiction over the Covered Work, as they may be amended from time to time, and which are incorporated herein by reference.
1.27 Party. “Party” shall have the meaning given to such term in the preamble.
1.28 PLA. “PLA” shall have the meaning given to such term in the preamble.
1.29 Plan for Settlement of Disputes. “ Plan for Settlement of Disputes” means the Plan for Settlement of Jurisdictional Disputes in the Construction Industry, or any successor plan.
1.30 Prime Contractor. “ Prime Contractor” means the contractor awarded a Covered Contract in privity directly with the City.
1.31 Project Labor Coordinator. “ Project Labor Coordinator” means the designee of the City, either from staff or a consultant acting on behalf of the City, to monitor compliance with this Agreement and assist with developing, implementing, and administering the requirements, policies, and programs referenced herein.
1.32 Tier 1 Local Hire. “Tier 1 Local Hire” means a Local Hire who is a resident of the City.
1.33 Tier 2 Local Hire. “Tier 2 Local Hire” means a Local Hire who is a resident of the County of San Diego, excluding the City.
1.34 Trades Council. “ Trades Council” shall have the meaning given to such term in the preamble.
1.35 Union. “Union” shall have the meaning given to such term in the preamble.
1.36 Veteran. “Veteran” means a veteran or the eligible spouse of a veteran of the United States armed forces, under Section 2(a) of the Jobs for Veterans Act (38 U.S.C. 4215(a)).
1.37 Workforce Dispatch Request Form. “ Workforce Dispatch Request Form” means the project-specific form by which Contractors request workers from the Union hiring halls on Covered Projects, an example of which is attached as Exhibit B.
1.38 Working Day. “Working Day” means Monday through Friday, excluding Holidays.
Docusign Envelope ID: F2B1A451- 4B15-4EEA-B618-612264FE68C1
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5 1.39 Work Opportunities Program. “ Work Opportunities Program” means a program jointly developed by the Parties to prepare and encourage Local Residents for entrance into Apprenticeship Programs and formal employment on the Covered Projects, as more fully described in Article 16.
ARTICLE 2. SCOPE OF THE AGREEMENT
2.1 General. This Agreement shall apply to onsite Covered Work, performed by Contractors(s).
2.2 Funding-Based Exception. The Parties agree and understand that this Agreement shall not apply to any Covered Project, or portion thereof that would otherwise be subject to this Agreement, if a governmental agency or granting authority fully or partially funding such Covered Project determines that it will not fund the Covered Project if it is subject to this Agreement. City will make reasonable effort to establish the inclusion of this Agreement with any governmental agency or granting authority funding a Covered Project. In no circumstance shall City be required to forgo project funding due to potential applicability of this Agreement.
2.3 Included Work. For the avoidance of confusion, items specifically included in the scope of this Agreement include, without limitation, the following:
a) Onsite and Adjacent Work. All onsite site preparation, construction, alteration, demolition, installation, improvement, landscaping, painting orrepair of buildings, structures and other works, and related activities for the Covered Project that is within the craft jurisdiction of one of the Unions and which is directly part of the Covered Project, including, without limitation, the following examples:
geotechnical and exploratory drilling, temporary HVAC, landscaping, temporary fencing, pipelines (including those in linear corridors built to serve the Covered Project), pumps, and pump stations. Onsite work includes work done solely for the Covered Project in temporary yards, dedicated sites, or other areas, provided that they are adjacent to the Covered Project, and at any onsite or offsite batch plant constructed solely to supply materials to the Covered Project. b) Systems Work. All startup, calibration, commissioning, performance testing, repair, maintenance or operational revisions to systems and/or subsystems for the Covered Project that are required as part of a Covered Contract, including warranty work performed after completion, unless such work is performed by City employees. Covered Work includes all onsite physical craft work that is part of startup and commissioning, including, but not limited to, system flushes and testing, loop checks, reword and modifications, and functional and operational testing up to and including the final running test. It is understood that the City’s personnel and/or representatives, together with the manufacturer’ s and/or vendor’ s representatives, and/or plant operating personnel may supervise and direct the startup, commissioning, rework, and modification activity, and that the onsite physical craft work is typically performed as part of a joint effort with these representatives and personnel. A manufacturer or its representatives may perform industry standard startup and commissioning work to satisfy its guarantee or warranty on a piece of equipment, and such work will be exempt from this Agreement to the extent the work is excluded by Section 2.4.
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City of Chula Vista - City Council
July 28, 2026 Post City Council Agenda
6 c) Fabrication. All onsite fabrication work over which Contractors possess the right of control (including work done for a Covered Project in any temporary yard or area established for the Covered Project). This Agreement also covers offsite fabrication to the extent that it is covered by existing Master Labor Agreements in effect at the time of the execution of this Agreement. All fabrication work over which a Contractor possesses the right of control, including without limitation, the fabrication of medical gas piping, air-handling systems and ducts, and HVAC sheet metal work, and which is traditionally claimed as onsite fabrication shall be performed onsite. Purchase of manufactured items from a genuine manufacturing facility for the supply of products is not considered fabrication and is not subject to this Agreement.
d) Batch Plants and Trucking. Onsite construction shall also include the site of any batch plant constructed solely to supply materials to the Covered Project.
Construction trucking work for thedelivery of ready-mix, asphalt, aggregate, sand, or other fill or material which are directly incorporated into the construction process as well as the off-hauling of debris and excess fill, material and/or mud, shall be covered by the terms and conditions ofthis Agreement tothe fullest extent allowed by law and by the prevailing wage determinations of the California Department of Industrial Relations.
2.4 Excluded Work. Items specifically excluded from the scope of this Agreement include the following:
a) Non-Manual Employees. Work of non-manual employees, including but not limitedto, superintendents, supervisors, staff engineers, timekeepers, mail carriers, clerks, office workers, messengers, guards, safety personnel, emergency medical and first aid technicians, and other professional, engineering, administrative, supervisory, and management employees. Notwithstanding the foregoing, however, this exclusion shall not apply to surveying and inspection services on a Covered Project, within the State of California’ s general prevailing wage determination for Surveyors and/or Building/Construction Inspectors and/or Field Soils and Material Testers (Inspectors) unless they are SDCCD employees, when this work is performed under a Covered Contract or under a professional services agreement. This inclusion applies to the scope of work defined in the State of California Wage Determination for Surveyors and/or Building/Construction Inspectors and/or Field Soils and Material Testers ( Inspectors). This shall also specifically include such work where it is referred to by utilization of such terms as “ quality control” or “ quality assurance.” Every Surveyor and Inspector performing under these classifications on Covered Work pursuant toaprofessional services agreement directly with a Contractor shall be bound to all applicable requirements of this Agreement regardless of the manner in which the work was awarded. Department of State Architects (DSA), Inspector of Record (IOR) per project will be excluded from the scope ofthis Agreement provided the DSA-IOR required duties, as outlined in the California Building Standards Administrative Code (Part 1 Title 24 C.C.R.) Article 6, are supervisory and do not conflict with the above-defined scope of work; and
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City of Chula Vista - City Council
July 28, 2026 Post City Council Agenda
7 b) Support Services. Non-construction support services contracted by the City or Contractor in connection with Covered Projects; and
c) City Employees. All employees ofthe City, or any consultants for City (including, but not limited to, project managers, construction managers, and their employees) and their subconsultants and other employees of professional service organizations, not performing manual labor within the scope of this Agreement. d) Work by Government and Private Utilities. Any work performed on, near, or leading to or into a site of work covered by this Agreement and undertaken by state, county, city or other governmental bodies, or their contractors (other than work within the scope ofthis Agreement undertaken by Contractors to the City) or by private utilities, or their contractors; and
e) Offsite Work. All offsite manufacturing, fabrication, deliveries, maintenance, and handling of materials, equipment, or machinery, and the offsite hauling of materials of any kind to or from the Covered Project site. However, any laydown or storage areas for equipment or material and manufacturing (i.e., prefabrication) sites dedicated solely for the Covered Project, onsite fabrication, and the movement of materials or goods between locations on a Covered Project Site are within the scope of this Agreement. Onsite fabrication work includes work performed for the Covered Project in temporary yards or areas near the Covered Project. Onsite construction shall also include the site of any batch plant constructed solely to supply materials to the Covered Project; and f) Manufacturer and Vendor Employees. Work performed by employees of a manufacturer or vendor on the manufacturer’ s or vendor’ s equipment, if required by the warranty agreement in order to maintain the warranty or guarantee, and provided that the warranty agreement is the manufacturer’ s or vendor’ s usual and customary warranty agreement for such equipment and is consistent with industry practice. Any work to be excluded pursuant to this subsection shall be identified and discussed at the relevant pre-job conference. Upon request from the Trades Council, City shall review with the vendor whether installation or application may be performed pursuant to the terms of the Agreement without affecting the status of the warranty; and
g) Specialized or Technical Work. Specialized or technical work requiring specialized training, unique skills, or alevel of specific technical experience which employees represented by the Unions do not possess, including but not limited to electrical utility and water utility work on high voltage utility equipment, water well construction, Supervisory Control and Data Acquisition (SCADA) or other computerized equipment, and other specialty utility construction work. Atleast ten 10) Working Days’ notice shall be given to the Trades Council prior to any work being performed pursuant to this exemption; and
h) Insufficient Number of Bids. Contracts for which there are less than three ( 3) unrelated, qualified bidders ( two ( 2) for ready-mix concrete), with five ( 5) Working Days’ written notice to the Business Manager for the Trades Council prior to bids being due that a sufficient number of bids have not been received.
This provision shall not apply unless City has: i) provided written notice of the Docusign Envelope ID: F2B1A451- 4B15-4EEA-B618-612264FE68C1
City of Chula Vista - City Council
July 28, 2026 Post City Council Agenda
8 solicitation of bids to at least three (3) contractors (two (2) for ready-mix concrete) that are signatory to a Master Labor Agreement of the Union that has jurisdiction over the work and to such Union concurrently with the first bid solicitation at least twenty-one (21) days in advance of the deadline for receipt of bids; ii) provide the bid specifications, information and bidding requirements directly to any additional union-signatory contractors that the Union has requested receive the bid specifications; iii) established the same bidspecifications and requirements for any non-unionsignatory contractor submitting a bidas were established for any Unionsignatory contractor, whether or not the non-union is submitted after City has successfully invoked the provisions of this section due to failure to receive three 3) bids (two (2) for ready-mix concrete); and iv) established bid specifications and requirements that are consistent with City’s usual and customary bidding process and industry practice in the San Diego region; and
i) Substantial Impracticality or Inefficiency. The City may exclude any work constituting a Covered Project upon a 4/5 vote of its City Council finding and determining that said work as a Covered Project would result in a substantial inefficiency or impracticality; and
j) Substantially Exceeds Engineer’ s Estimate. If the lowest responsive and responsible bid exceeds the engineer’ s estimate by thirty-five percent ( 35%) or more, the City reserves the right to reject all bids and readvertise the contract not as a Covered Project or Covered Contract and not subject to this PLA. This exemption cannot be invoked more than twice in any calendar year to exclude a Covered Project or a Covered Contract from the scope of the PLA; and k) Laboratory testing work; and
l) Emergency Work.
2.5 Awarding of Contracts.
a) Each Union shall provide the Project Labor Coordinator a list of signatory Contractors, whose principal placeof business is withinthegeographic jurisdiction of the City and that routinely perform work within the scope of the Covered Work in such area. The Union shall specify the type of work that such Contractor performs and may amend the list as necessary. City and any Prime Contractor that contracts Covered Work to another Contractor shall solicit bids from at least two 2) Contractors ontheapplicable Union’ s listfor the Covered Work, provided such Contractors meet any applicable City pre-qualification criteria. The solicitation of bids shall be based upon the same terms, conditions, and scope of work requested of all potential bidders. Notwithstanding the preceding sentence, City has the absolute right to bid or award Covered Contracts regardless of delivery method to any Contractor, notwithstanding the existence or non-existence of any agreements between such Contractor and any Union, provided only that such Contractor is willing, ready, and able to execute a Letter of Assent as set forth in Exhibit A hereto, and comply with this Agreement in performance of the Covered Work. b) It is agreed that all Contractors awarded Covered Work shall be required to accept and be bound by the terms and conditions of this Agreement. Contractors shall Docusign Envelope ID: F2B1A451- 4B15-4EEA-B618-612264FE68C1
City of Chula Vista - City Council
July 28, 2026 Post City Council Agenda
9 evidence their acceptance of this Agreement by executing a Letter of Assent as set forth in Exhibit A hereto. The Prime Contractor must sign and submit the Letter of Assent as a condition of award prior to the execution of a Covered Contract. No Contractor shall commence Covered Work without first providing a copy of the signed Letter of Assent to the Project Labor Coordinator. c) It is agreed that, to the extent permitted by law and consistent with the economy and efficiency of construction and operation, City and Contractors will use best efforts to purchase materials, equipment, and supplies that will not create labor strife. Under all circumstances, however, City and Contractors shall retain the absolute right to select Contractors for the award of contracts and subcontracts on all Covered Projects.
2.6 Master Labor Agreements.
a) Conflicts Between Agreements. The provisions of this Agreement, including the Master Labor Agreements, shall apply to the Covered Work, notwithstanding the provision of any other local, area, and/or national agreement that may conflict with or differ from the terms of this Agreement. In the event of any inconsistency between a Master Labor Agreement and this Agreement, the provisions of this Agreement shall prevail. In the event that this Agreement is silent on a matter that is addressed in a Master Labor Agreement, the provisions of the Master Labor Agreement shall apply. Any dispute as to the applicable source between this Agreement and any Master Labor Agreement shall be resolved under the procedures established in Article 11.
b) No Additional Agreements Required. It is agreed that this Agreement, together with the referenced Master Labor Agreements, constitutes a self -contained, standalone agreement and, by virtue of having become bound to this Agreement, the Contractor will not be obligated to sign any other local, area, or national collective bargaining agreement as a condition of performing work within the scope of this Agreement. Provided, however, that the Contractor may be required to sign a uniformly applied non-discriminatory Participation or Subscription Agreement at therequest ofthe trustees or administrator of a trust fund established pursuant to Section 302 of the Labor Management Relations Act, and to which such Contractor may be bound to make contributions under this Agreement, provided that such Participation or Subscription Agreement does not purport to bind the Contractor beyond the terms and conditions of this Agreement for Covered Work and/or expand its obligation to make contributions thereto. It shall be the responsibility of the Prime Contractor to have each ofits Contractors of any tier sign the documents with the appropriate Union prior to the Contractor beginning work on the Covered Projects.
c) Continuation. Master Labor Agreements incorporated as part of this Agreement shall continue in full force and effect with regard to Covered Work, until the Master Labor Agreement is modified by parties thereto.
2.7 Instrument Calibration and Loop Checking Exception. Except for work performed under the NTL Articles of Agreement, the Stack/Chimney Agreement, and the National Cooling Tower Agreement, all instrument calibration work and loop checking shall be performed under the terms of the Docusign Envelope ID: F2B1A451- 4B15-4EEA-B618-612264FE68C1
City of Chula Vista - City Council
July 28, 2026 Post City Council Agenda
10 UA/IBEW Joint National Agreement for Instrument and Control Systems Technicians, and the National Agreement of the International Union of Elevator Constructors, with the exception of Article 8 (Work Stoppages and Lockouts) and Article 11 (Grievances and Disputes) of this Agreement, which shall apply to such Covered Work.
ARTICLE 3. DURATION AND APPLICABILITY OF AGREEMENT
3.1 Duration. This Agreement shall be effective as of the Effective Date and shall continue in full force and effect through June 30, 2030. Either the City or the Trades Council may provide written notice to the other, such notice to be provided not less than ninety (90) calendar days prior to the expiration of the Agreement, of its intent to extend the Agreement. Upon written mutual consent of the City and the Trades Council, the Agreement may be extended administrative for a period nottoexceed five (5) additional years, for a total term of ten (10) years.
3.2 Limits to Applicability. The Parties agree that this Agreement will be made available to, and will fully apply to, any successful bidder for Covered Projects, without regard to whether that successful bidder performs work at other sites on either a Union or non-Union basis. This Agreement shall not apply to any work of any Contractor other than that on Covered Projects specifically covered by this Agreement.
3.3 Binding on Signatories Only. This Agreement and Letter of Assent shall only be binding on Contractors in the performance of Covered Work, and shall not apply to the parents, affiliates, subsidiaries, or other ventures of any such Contractors.
3.4 Other City Work. Nothing contained herein shall be interpreted to prohibit, restrict, or interfere with the performance of any other operation, work, or function not covered by this Agreement, which may be performed by City employees or contracted for by the City for its account, on its property, or in and around the Covered Project Site.
3.5 Completed Covered Projects. As portions of Covered Projects are completed and accepted by the City, this Agreement shall have no further force or effect on such portions of Covered Projects, except where the Contractor is directed by the City or the Project Labor Coordinator to engage in repairs, modifications, and/or checkout functions required by its contract(s) with the City. Notice of acceptance received by the Contractor will be provided to the Trades Council with the description of the portion, segment, etc. that has been accepted by the City. Acceptance may be subject to a “ punch” list, and in such case, the Agreement will continue to apply to each item on such list until it is completed to the satisfaction of the City and notice of same is given by the City or its representative to the Contractor.
3.6 Final Termination. Final termination of all obligations, rights, liabilities, and disagreements shall occur upon receipt by the Trades Council of a notice from the City confirming that no work remains within the scope of the Agreement.
ARTICLE 4. UNION RECOGNITION AND EMPLOYMENT
4.1 Recognition. The Contractor recognizes the Unions as the exclusive bargaining representative for the employees engaged in Covered Projects. Such recognition does not extend beyond the period when the employee is engaged in Covered Work.
4.2 Contractor Selection of Employees. The Contractor shall have the right to determine the competency of all employees, the number of employees required, the duties of such employees within their craft jurisdiction, and shall have the sole responsibility for selecting employees to be laid off, consistent with this Article. The Contractor shall also have the right to reject any applicant referred by a Union for Docusign Envelope ID: F2B1A451- 4B15-4EEA-B618-612264FE68C1
City of Chula Vista - City Council
July 28, 2026 Post City Council Agenda
11 any lawful reason, subject to any reporting time requirements of the applicable Master Labor Agreement; provided, however, that such right is exercised in good faith and not for the purpose of avoiding the Contractor’ s commitment to employ qualified workers through procedures endorsed in this Agreement.
4.3 Referral Procedures.
a) Job Referral System. For Unions having ajobreferral system contained ina Master Labor Agreement, the Contractor agrees to comply with such system, and such system shall be used exclusively by such Contractor, except as modified by this Agreement. Such job referral system will be operated in a nondiscriminatory manner and in full compliance with federal, state, and local laws and regulations that require equal employment opportunities and nondiscrimination. All of the foregoing hiring procedures, including related practices affecting apprenticeship, shall be operated so as to consider the goals of the City to encourage employment of Local Hires and Disadvantaged Workers on the Covered Projects, and to facilitate the ability of all Contractors to meet their employment needs. b) Duty to Recruit and Refer. The Unions will exert their best efforts to recruit and refer sufficient numbers of skilled craft workers to fulfill the labor requirements of the Contractors, including specific employment obligations to which a Contractor may be legally and/or contractually obligated; and to refer Apprentices as requested to develop a larger, skilled workforce to perform Covered Work. The Unions will work with the Project Labor Coordinator and others designated by the City to identify and refer competent craft persons as needed for Covered Work.
Contractors and Unions shall identify individuals, particularly Disadvantaged Workers and Veterans, for entrance into Apprenticeship Programs. c) Currently Employed. The Union shall not knowingly refer an employee currently employed by a Contractor on Covered Project to any other Contractor.
ARTICLE 5. EQUAL EMPLOYMENT OPPORTUNITY AND NONDISCRIMINATION
5.1 Nondiscrimination in Referral, Employment, and Contracting. The Parties and Contractors shall not unlawfully discriminate, harass, or allow harassment against any employee or applicant for employment because of sex, race, ethnicity, color, ancestry, religious creed, national origin, sexual orientation, physical disability, mental disability, medical condition, age, marital status, denial of family care leave, genetic information, gender, gender identity, gender expression, military or veteran status, criminal records, part incarceration, previous status as a foster youth, political affiliation, or membership in a labor organization inhiringand dispatching workers for the Covered Projects. The Parties and Contractors will ensure that the evaluation and treatment of their employees, members, and applicants for employment or membership are free from such discrimination and harassment.
5.2 Disabled Veterans and Small Business Enterprise Program. The Parties acknowledge that the City has adopted Council Policy 160-03 (Disabled Veterans and Small Business Enterprise Program), provided as Exhibit C. The Parties and Contractors shall jointly endeavor to assure that these commitments are fully met, and that any provisions ofthis Agreement that may appear tointerfere with Disabled Veterans Business Enterprises and Small Business Enterprises successfully bidding for work on Covered Projects shall becarefully reviewed and adjustments made as may be appropriate andagreed uponamong the Parties, to ensure full compliance with Council Policy 160-03, as it may be amended from time to time, on Covered Projects.
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City of Chula Vista - City Council
July 28, 2026 Post City Council Agenda
12 a) Duty to Report. In order to assist the City in monitoring compliance with Council Policy 160-03, each Prime Contractor shall be responsible for providing documentation verifying compliance with same to the Project Labor Coordinator.
5.3 Core Employees. This section only applies to Contractors who are not directly signatory to an applicable Master Labor Agreement.
a) Hiring Procedures. Contractors who are not otherwise signatory to a Master Labor Agreement may employ, as needed, first, a referral from the appropriate Union hiring hall, then a Core Employee, then a second employee through the referral system, then a second Core Employee, and so on, until a maximum of three (3) Core Employees are employed per craft on the Project. Thereafter, all additional employees in the affected trade or craft shall be requested and referred from the appropriate Union hiring hall in accordance with this Article. b) Registration Required. Section 5.3 only applies to Contractors who are not directly signatory to a current Master Labor Agreement for the craft worker in its employ and is not intended to limit the transfer provisions of the Master Labor Agreement of any trade. As part of this process, and in order to facilitate the contract administration procedures, as well as appropriate fringe benefit fund coverage, all Contractors shall require their Core Employees and any other persons employed other than through the referral process, to register with the appropriate Union hiring hall, if any, prior to their first day of employment working under the Covered Contract at the Covered Project Site. The registration process shall be administered by the Contractors and Union reasonably, but without impacting the Covered Project schedule.
c) List to be Provided. Prior to each Contractor performing any work on a Covered Project, each Contractor shall providealist of Core Employees tothe Project Labor Coordinator and the Trades Council. After submitting the Core Employee list prior to commencing work on that Covered Project, Contractors shall not make any changes or substitutions to the Core Employee list for the duration ofthat Covered Project without prior agreement by the Parties, unless one or more Core Employees retires, changes employer, resigns, or is terminated.
d) Documentation to be Provided. Upon request by any Party to this Agreement, the Contractor hiring any Core Employee shall provide satisfactory proof (i.e., payroll records, quarterly tax records, and such other documentation as may be deemed acceptable by the Project Labor Coordinator) evidencing the Core Employee’ s qualification as a Core Employee to the Project Labor Coordinator and the Trades Council.
e) Eligibility Requirements. Core Employees must meet the following eligibility requirements to qualify for employment on Covered Projects:
1) A Core Employee must be ajourneyperson and appear on the Contractor’ s active payroll for at least ninety (90) of the last one hundred and eighty 180) calendar days prior to being designated as a Core Employee. The date a Core Employee is designated is the date the Core Employee list is Docusign Envelope ID: F2B1A451- 4B15-4EEA-B618-612264FE68C1
City of Chula Vista - City Council
July 28, 2026 Post City Council Agenda
13 submitted to the Project Labor Coordinator and the Trades Council prior to the Contractor commencing work on the Covered Project. 2) A Core Employee must possess any license required by state or federal law for the Covered Work to be performed.
3) A Core Employee must have the ability to safely perform the basic functions of the applicable trade; and
4) A Core Employee must be a resident of San Diego County. f) In addition to the Core Employee provisions set forth herein, all Contractors may avail themselves of any opportunity provided for in the applicable Master Labor Agreements to call for specific employees by name.
g) During any layoffs or reductions in workforce, Contractors shall lay off employees in an order and manner consistent with the Core Employee hiring procedures and maintain the required Core Employee-to-Union referral ratios required by this Section for the duration of the Covered Project.
5.4 Employment of Local Hires and Disadvantaged Workers. a) First Referred. The Parties acknowledge that the City desires to maximize employment opportunities for Local Hires and Disadvantaged Workers and Unions and Contractors agree that Local Hires shall be first referred for Covered Projects. The list of qualifying Disadvantaged Areas shall be posted to the City’s website.
b) Local Hire Goal. The Contractors and Unions agree that, to the extent allowed by law, and as long as they possess the requisite skills and qualification, the Unions will exert their best efforts torefer and/or recruit sufficient numbers of skilledcraft Local Hires to fulfill the requirements of the Contractors. Contractor and Unions further agree to work together to achieve a goal of at least fifty percent (50%) of the total construction craft hours worked on each Covered Project being performed by Local Hires, as further described in Section 5.4(c). c) Priority of Local Hires. The Contractors and Unions agree that Tier 1 Local Hires shall be first referred for Covered Projects. Should there not be sufficient skilled and qualified Tier 1 Local Hires to meet the Local Hire goal established in Section
5.4(b), Tier 2 Local Hires shall then be referred until the Local Hire goal has been met.
d) Disadvantaged Worker Goal. The Contractors and Unions agree to work together toachieve a goal of atleast thirty percent (30%) ofthetotal construction craft hours work on each Covered Project being performed by Disadvantaged Workers. Hours worked by Local Hires whoare also Disadvantaged Workers may be applied to the Local Hire participation goal.
e) Apprentice Hiring Goal. The Contractors and Unions agree to work together to achieve a goal of at least one ( 1) Apprentice for every four (4) non-Apprentice workers.
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City of Chula Vista - City Council
July 28, 2026 Post City Council Agenda
14 f) Compliance with Local Hire, Disadvantaged Worker, and Apprentice Hiring Goals. Contractors shall satisfy the goals set forth in Sections 5.4(b), 5.4(d), and
5.4(e) by: (i) assigning craft Core Employees who are Local Hires, Disadvantaged Workers, and/or Apprentices to perform Covered Work; and ( ii) if necessary, requesting referral of Local Hires from Union hiring halls (using the Workforce Dispatch Request Form) and Apprenticeship Programs. Contractors who follow these procedures in good faith and with concerted efforts to identify and retain Local Hires, Disadvantaged Workers, and Apprentices shall not be considered in non-compliance for failure to meet the goals set forth in Sections 5.4(b), 5.4(d), and 5.4(e).
g) Workforce Dispatch Request Form Required. To facilitate the dispatch of Local Hires, as well as all Contractor requests for referral and dispatch of workers from the applicable Union referral system, all Contractors are required to utilize the Workforce Dispatch Request Form. When Local Hires are requested by a Contractor, the Unions will refer Local Hires, to the extent such status is known, regardless of their place in the Union hiring halls’ list and normal referral procedures.
5.5 Time for Referral. If any Union’ s registration and referral system does not fulfill the requirements for specific classifications of covered employees requested by any Contractor within forty - eight (48) hours (excluding Saturdays, Sundays, and Holidays), those Contractors may use employment sources other than Core Employees and the Union registration and referral services and may employ applicants from any other available source. The Contractor shall promptly notify the Union of any applicants hired from other sources, and such applicants shall register with the appropriate hiring hall, if any.
5.6 Lack of Referral Procedure. If a signatory local Union does not have a job referral system as set forth in Section 4.3 above, the Contractor shall give the Union equal opportunity to refer applicants in conformance with remaining provisions of this Article 5. The Contractors shall notify the Union of employees so hired, as set forth in Section 5.5.
5.7 City to Monitor Compliance. The Project Labor Coordinator shall work with the Unions and Contractors in the administration, monitoring, and reporting of the foregoing Local Hire and Disadvantaged Worker hiring goals.
5.8 Union Membership. Employees are not required to become or remain union members as a condition of performing Covered Work under this Agreement. Contractors shall make and transmit all deductions for union dues, fees, and assessments that have been authorized by employees in writing in accordance with the applicable Master Labor Agreement. Nothing in this Section 5.8 is intended to supersede the requirements of the applicable Master Labor Agreements as to those Contractors otherwise signatory tosuch Master Labor Agreement andas totheemployees ofthose Contractors whoare performing Covered Work.
5.9 Foremen. The selection and number of craft foremen and/or general foremen shall be the responsibility of the Contractor, consistent with the Master Labor Agreements. All foremen shall take orders exclusively from the designated Contractor representatives. Craft foremen shall be designated as working foreman at the request of the Contractors.
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City of Chula Vista - City Council
July 28, 2026 Post City Council Agenda
15 5.10 Skilled and Trained Workforce. Each Contractor performing work on a Covered Project is required to utilizea skilledand trained workforce, as definedin Public Contract Code § 2600 - 2603. Unions and Contractors shall utilize the grievance procedures set forth in Article 11 of this Agreement to resolve any disputes regarding skilled and trained workforce requirements. To the maximum extent permissible under state law and regulation, including California Public Utilities Code § 132354.7(a)(3), Contractors and City shall be relieved of reporting and enforcement obligations and systems described in Public Contract Code § 2602 and 2603, and Contractors’ requirement to utilize a skilled and trained workforce shall instead by monitored and enforced by Unions and Contractors through the provisions of this Agreement.
ARTICLE 6. UNION ACCESS AND STEWARDS
6.1 Access to Covered Project Sites. Authorized representatives ofthe Unionshall have access to Covered Project Sites, provided that they do not interfere with the work of employees and further provided that such representatives fully comply with posted visitor, security, and safety rules.
6.2 Stewards.
a) Stewards Authorized. Each signatory local Union shall have the right to dispatch a working journeyperson as a steward for each shift and shall notify the Contractor in writing of the identity of the designated steward or stewards prior to the assumption of such person’ s duties as steward. Such designated steward or stewards shall not exercise any supervisory functions. There will be no nonworking stewards. Stewards will receive the regular rate of pay of their respective crafts.
b) Steward Purview. In addition to their work as an employee, the steward shall have the right to receive, but not to solicit, complaints or grievances and to discuss and assist in the adjustment of the same with the employee’ s appropriate supervisor.
Each steward should be concerned only with the employees of the steward’ s Contractor and not with the employees of any other Contractor. The Contractor shall not discriminate against the steward inthe proper performance oftheir Union duties.
c) Additional Stewards. When a Contractor has multiple, non-contiguous work locations at one site, the Contractor may request, and the Union shall appoint such additional working stewards as the Contractor requests to provide independent coverage of one or more such locations. In such cases, a steward may not service more than one work location without the approval of the Contractor. d) No Overtime Determinations. The stewards shall not have the right to determine when overtime shall be worked or who shall work overtime.
6.3 Steward Layoff/Discharge. The Contractor agrees to notify the appropriate Union twentyfour (24) hours before the layoff of a steward, except in the case of disciplinary discharge for just cause. If the steward is protected against such layoff by the provisions of the applicable Master Labor Agreement, such provisions shall be recognized when the steward possesses the necessary qualifications to perform the remaining work. Inany case in whichthesteward is discharged or disciplined for just cause, the appropriate Union will be notified immediately by the Contractor, and such discharge or discipline shall not become final (subject to any later filed grievance) until twenty-four (24) hours after such notice has been given.
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City of Chula Vista - City Council
July 28, 2026 Post City Council Agenda
16 6.4 Employees on Non-Covered Projects. On work where the personnel of the City or its contractors may be working in close proximity to the construction activities covered by this Agreement on non-covered projects, the Union agrees that the Union representatives, stewards, and individual workers will not interfere with City personnel, or with personnel employed by any other employer not performing Covered Work. Violation of this provision by stewards and individual workers shall be just cause for disciplinary discharge. Violation of this provision by Union representatives shall constitute a material violation of this Agreement.
ARTICLE 7. WAGES AND BENEFITS
7.1 Wages. At a minimum, all employees covered by this Agreement shall be classified in accordance with work performed and paid hourly wage rates for those classifications in compliance with the Applicable Prevailing Wage Laws.
7.2 Benefits.
a) Payment. For all employees performing Covered Work, Contractors shall pay, at a minimum, all employee fringe benefits and other required Contractor contributions to the established Union employee benefit funds in the amounts required by the appliable Master Labor Agreements. In addition, the Contractors and Unions agree that only such bona fide employee benefits that accrue to the direct benefit of the employees (such as pension and annuity, health and welfare, vacation, apprenticeship, and training funds) shall be included in this requirement and required to be paid by the Contractor for performance of Covered Work. b) Benefit Trust Funds. Where benefit payments are required by Section 7.2(a), the Contractor adopts and agrees to be bound by the written terms of the applicable, legally established, Union trust agreement(s) specifying in detail how payments will be made into, and benefits paid out of, such trust funds for its employees. The Contractor authorizes the parties to such trust funds to appoint trustees and successors’ trustees to administer the trust funds and hereby ratifies and accepts the trustees so appointed as if made by the Contractor. The Contractor obligations to the applicable Union benefit fund(s) and trust agreement(s) are limited to work performed on Covered Projects. The applicable Union benefit funds and trust agreement(s) to each Contractor are determined by the pre-job conference and Union work assignment process described in Articles 9 and 18. c) Certification Required. Each Contractor is required to certify to the Project Labor Coordinator that it has paid all benefit contributions due and owing to the appropriate Uniontrust(s) and benefit funds prior tothereceipt ofits final payment and/or retention. Further, upon timely notification by a Union to the Project Labor Coordinator, the Project Labor Coordinator shall work with any Contractor who is delinquent inpayments to assure that proper benefit contributions are made, to the extent of requesting City and/or the Prime Contractor to withhold payments otherwise due to such Contractor, until such contributions have been made or otherwise guaranteed.
d) Construction Industry Exemption. Notwithstanding any other provisions, this Agreement is an agreement under Section 8(f) ofthe National Labor Relations Act, which covers work performed in the building and construction industry. In Docusign Envelope ID: F2B1A451- 4B15-4EEA-B618-612264FE68C1
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17 addition, the work performed under this Agreement qualifies for Construction Industry Exemption under the Employee Retirement and Income Security Act of 1974 (“ ERISA”), as amended. If any Union pension trust fund covered by the terms and conditions of this Agreement does not qualify for the ERISA Construction Industry Exemption authorized by § 4203(B)(1)(i), as amended, 29 U.S.C. 1383(b)(1)(i), or has not taken the necessary steps to amend the fund documents to qualify for the Construction Industry Exemption as authorized by ERISA § 4203(B)(1)(ii), as amended, 29 U.S.C. 1383(b)(1)(B)(ii); and to recognizethe work performedunder this Agreementtoqualify forthe Construction Industry Exemption, the Contractors signatory to this Agreement will not be obligated to make pension fund contributions to that fund. In such an event, the Contractor shall pay all required amounts otherwise allocated for payment toward the non-exempt fund to the employee’ s wages or other bona fide retirement plan program pursuant to Applicable Prevailing Wage Laws.
7.3 Wage Premiums. Wage premiums, including, but not limited to, pay based on height of work, shift premiums, hazard pay, scaffold pay, and special skills shall not be applicable to work under this Agreement, except to the extent provided for in any Applicable Prevailing Wage Laws.
7.4 Compliance with Prevailing Wage Laws. All complaints regarding possible violations of Applicable Prevailing Wage Laws may be referred to the Project Labor Coordinator for processing, investigation, and resolution, and if not resolved within thirty (30) calendar days, may be referred by any Party to the State Labor Commissioner. To facilitate compliance with Applicable Prevailing Wage Laws, Contractor agrees to provide copies of certified payroll reports, redacted only to the extent required by law, to the Unions ( or to any Labor Management Cooperation Committee in which a Union or its affiliate participate) within ten (10) Working Days of their request. The Trades Council or Union, as appropriate, shall be advised in a timely manner with the facts and resolution, if any, of any complaint.
ARTICLE 8. WORK STOPPAGES AND LOCKOUTS
8.1 No Work Stoppages or Disruptive Activity. The Trades Council and the Unions signatory hereto agree that neither they, nor their respective officers, or agents, or representatives, shall incite, encourage, condone, or participate inany strike, walkout, slowdown, picketing, observation of picket lines, or other activity of any nature or kind whatsoever, for any cause or dispute whatsoever with respect to or in any way related to Covered Projects, or which interferes or otherwise disrupts Covered Projects, or with respect or related to City or Contractors or subcontractors, including, but not limited to, economic strikes, unfair labor practices strikes, safety strikes, sympathy strikes, and jurisdictional strikes, whether or not the underlying dispute is arbitrable. Any such actions by the Trades Council, the Unions, or their members, agents, representatives, or the employees they represent shall constitute a material violation of this Agreement. The Trades Council and the Union shall take all steps necessary toensure compliance with this Article 8.
8.2 Employee Violations. The Contractor shall discharge any employee violating Section 8.1, and any such employee shall not be eligible for rehire under this Agreement.
8.3 Standing to Enforce. City and any Contractor affected by an alleged violation ofthis Article 8 shall have the standing and the right to enforce the obligations established herein.
8.4 Expiration of Master Labor Agreements. If a Master Labor Agreement between a Unionsignatory Contractor and one or more of the Union(s) expires before the Contractor completes the Docusign Envelope ID: F2B1A451- 4B15-4EEA-B618-612264FE68C1
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18 performance of the Covered Work under a Covered Contract, and the Union or the Contractor gives notice of demand for a new or modified Master Labor Agreement, the Unions agree that they will not strike the Contractor on any Covered Project, and the Union and the Contractor agree that the expired Master Labor Agreement will continue in full force and effect for the Covered Projects until a new or modified Master Labor Agreement is put in place between the Union and the Contractor. If the new or modified Master Labor Agreement between the Union and the Contractor provides that any terms of the Master Labor Agreement shall be retroactive, the Contractor agrees to comply, consistent with the terms of this Agreement and the applicable Prevailing Wage Laws, with any retroactive terms of the new or modified Master Labor Agreement which are applicable to employees of said Contractor that are employed on a Covered Project within seven ( 7) Working Days at no cost to the City. All employees shall continue to work and to perform all obligations with respect to Covered Work, despite the expiration of any Master Labor Agreement. Should a Contractor engaged in Covered Projects enter into an interim agreement with the Unions for work being performed elsewhere after the expiration, and before the renewal of a local collective bargaining agreement forming the basis for a Master Labor Agreement, such interim agreement shall be utilized by that Contractor for Covered Projects, subject to the provisions of Section 2.6(c) Continuation of Master Labor Agreements).
8.5 No Lockouts. Contractors shall not cause, incite, encourage, condone, or participate in any Lockout of employees with respect to Covered Projects during the term of this Agreement.
8.6 Best Efforts to End Violations.
a) Violation by Union. If a Contractor or City contends that there is any violation of this Article, it shall, atleasttwenty-four (24) hours prior toinvokingtheprocedures of Section 8.7, provide written notification to the Trades Council of the involved Union(s) and to the Project Labor Coordinator, setting forth the facts which the Contractor contends violate this Article. The Trades Council and the leadership of the involved Union(s) will immediately instruct, order, and use their best efforts to cause the cessation of any violation of this Article 8. b) Violation by Contractor. If the Union contends that any Contractor has violated this Article, it will notify the Contractor and the Project Labor Coordinator, setting forth the facts which the Union contends violate this Article 8, at least twenty-four 24) hours prior to invoking the procedures to Section 8.7. The Project Labor Coordinator shall promptly order the involved Contractor(s) to cease any violation of this Article.
8.7 Arbitration Procedure. Any Party, including the City, which is an intended beneficiary of this Article, and affected Contractors, may institute the following procedures, in -lieu or in addition to any other action at law or equity, when a breach of this Article is alleged. a) Notice to Arbitrator. The Party, including any affected Contractor, invoking this procedure shall notify Robert Hirsch, who has been selected by the Parties, and whom the Parties agree shall be the permanent arbitrator under this procedure, or John Kagel, as the alternate arbitrator under this procedure. If the permanent arbitrator is unavailable at any time, the alternate arbitrator will be contacted. If neither is available, then a selection shall be made by the most expeditious means available, with notices to the Contractor or Union alleged to be in violation, and to the Project Labor Coordinator and Trades Council. For purposes of this Article, Docusign Envelope ID: F2B1A451- 4B15-4EEA-B618-612264FE68C1
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19 written notices may be made by email, hand delivery, or certified mail and will be deemed effective upon receipt.
b) Hearing Schedule. Upon receipt of said notice, thearbitrator named above, or their alternate, shall sit and hold a hearing within seventy-two ( 72) hours if it is contended that this violation still exists, but no sooner than twenty-four (24) hours after notice has been dispatched to the Trades Council of the involved Union(s) and/or Contractor as required by Section 8.6 above. The arbitrator shall notify the disputing Parties of the place and time chosen for the hearing, which may be held in person or via videoconference.
c) Hearing Procedures. Said hearing shall be completed in one session, which, with appropriate recesses atthearbitrator’ s discretion, shall not exceed twenty-four (24) hours, unless otherwise agreed upon by all disputing Parties. A failure of any of the disputing Parties to attend said hearing shall not delay the hearing of evidence or the issuance of any award by the arbitrator.
d) Hearing Scope. The sole issue at the hearing shall be whether or not a violation of this Article has in fact occurred. The arbitrator shall have no authority to consider any matter in justification, explanation, or mitigation of such violation or to award damages ( except for damages as set forth in Section 8.8) which issue is reserved for court proceedings, if any.
e) Arbitration Award. Theaward shall be issuedin writing withinthree (3) hours after the close of the hearing and may be issued without an opinion. If any Party desires a written opinion, one shall be issued within fifteen (15) Working Days, but its issuance shall not delay compliance with, or enforcement of, the award. The arbitrator may order cessation of the violation of this Article and other appropriate relief, and such award shall be served on all disputing Parties by email, hand delivery, or certified mail upon issuance. The amount of liquidated damages pursuant to Section 8.8 below shall be determined at a second hearing scheduled by the arbitrator within thirty (30) calendar days of the first hearing to determine if a violation of this Article has occurred. Such arbitration award shall be final and binding on all Parties and may be enforced by any court of competent jurisdiction upon the filing of this Agreement and all other relevant documents referred to herein above in the following manner. Written notice of the filing of such enforcement proceedings shall be given to the other Party. In any judicial proceeding to obtain a temporary order enforcing the arbitrator’ s award as issued pursuant to this section, all disputing Parties waive the right to a hearing and agree that such proceedings may be ex parte. Such agreement does not waive any Party’ s right to participate in a hearing for a final order of enforcement. The court’ s order(s) enforcing the arbitrator’ s award shall be sent to all disputing Parties. f) Waiver. Any rights created by statute or law governing arbitration proceedings inconsistent with the above procedure or which interfere with compliance hereto are hereby waived by the Parties and Contractors to whom they accrue. g) Shared Expense. The fees and expenses of the arbitrator shall be equally divided between the Party or Parties initiating this procedure and the respondent Party or Parties.
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20 8.8 Liquidated Damages.
a) Work Stoppage or Disruption. If the arbitrator determines in accordance with Section 8.7 above that a work stoppage or other disruption to a Covered Project , pursuant to Section 8.1, has occurred, the respondent Union(s) shall, within eight 8) hours of receipt ofthe award, direct all employees they represent on the project to immediately return to work. Ifthe craft(s) involved do not return to work by the beginning ofthenext regularly scheduled shiftfollowingsuch eight (8) hour period after receipt of the arbitrator’ s award, and the respondent Union(s) have not complied with their obligations to immediately instruct, order, and use their best efforts to cause acessation oftheviolation and return the employees they represent to work, then the non-complying Union(s) shall each pay a sum as liquidated damages to the City, and each will pay an additional sum per shift, as set forth in Section 8.8(c), below, for each shift thereafter on which the craft(s) has/have not returned to work.
b) Lockout. If the arbitrator determines that a Lockout has occurred on a Covered Project, the respondent Contractor shall, within eight (8) hours after receipt of the award, return all the affected employees to work on the Covered Project , or otherwise correct the violations found by the arbitrator. If the respondent Contractor does nottake such action by thebeginning ofthenext regular scheduled shift following the eight ( 8) hour period, each non-complying respondent Contractor shall pay or give as liquidated damages, to the affected Union (to be apportioned among the affected employees and the benefit funds to which contributions are made on their behalf, as designated by the arbitrator) an amount equal to the total hourly wages and benefits lost for all affected employees of the Contractor on Covered Projects. Inaddition, the Contractor shall pay an additional sum per shift to the City, as set forth in Section 8.8(c), below, for each shift thereafter in which compliance by the respondent Contractor has not been achieved.
c) Payment of Liquidated Damages to City. The Parties agree that project delays caused by violations of this Article 8 will cause the City to sustain damages. They agree that it would be impractical or extremely difficult to fix the amount of such damages. Therefore, the Parties agree that, in the event of a breach of this Article, the disputing Party in breach shall pay to the City the sum of $10,000 per shift, from the time that the arbitrator determines that a delay has occurred until the arbitrator determines that the Covered Project is no longer disrupted. The payment of liquidated damages, when made, shall constitute a damages remedy of the City for the delay specified, but shall not prevent the City from seeking an injunctive or other monetary relief, including termination of this Agreement. Payment of these sums as liquidated damages is not intended as a forfeiture or penalty within the meaning of California Civil Code § 3275 or 3369, but instead, is intended to constitute liquidated damages tothe City pursuant to California Civil Code § 1671.
8.9 Payroll and Benefit Delinquencies. Notwithstanding other provisions of this Agreement, it shall not be a violation of this Agreement for any Union to withhold the services of its members from a Contractor who fails to timely pay its weekly payroll in accordance with the applicable Master Labor Agreement or fails to make timely payments to the applicable Union benefit funds. This Section 8.9 does Docusign Envelope ID: F2B1A451- 4B15-4EEA-B618-612264FE68C1
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21 not inhibit or affect responsibilities of the Trades Council and the Union under Section 8.1 to refrain from picketing or other disruption of Covered Projects.
a) Failure to Make Payroll. Prior to withholding its members’ services for the Contractor’ s failure to meet its weekly payroll, the Union shall give at least five 5) Working Days written notice of such failure to pay by certified mail or email transmission, to the involved Contractor, Prime Contractor, and Project Labor Coordinator. The Prime Contractor, together with the involved Contractor and affected Union, shall meet within five (5) Working Days after the written notice of such failure to pay was received to attempt to resolve the payroll delinquency. If the payroll delinquency remains unresolved, then theaffected Union may withhold the services of its members from the involved Contractor. Upon payment of all monies due and owing for wages, the Union shall direct its members to immediately return to work and the Contractor shall return all such members to work.
b) Failure to Contribute to Benefit Funds. Prior to withholding its members’ services for the Contractor’ s failure to make timely payments to the applicable Union benefit funds, the Union shall give at least thirty (30) calendar days written notice of such failure to pay by certified mail or email transmission, to the involved Contractor, the Prime Contractor, and the Project Labor Coordinator. The Prime Contractor, together with the involved Contractor and the affected Union, shall meet within five (5) Working Days after the written notice of such failure to pay was sent to attempt to resolve the delinquency. If the delinquency remains unresolved, then theaffected Union may withhold theservices ofits members from the involved Contractor. Upon payment by the delinquent Contractor of all monies due and then owing for employee benefit contributions, the Union shall direct its members to immediately return to work and the Contractor shall return all such members back to work.
c) Grievance Rights Reserved. Nothing inthis section should be construed to prevent the Union having jurisdiction over the involved work from submitting a grievance under Article 11 for any alleged or actual violations of Article 7 or referring any alleged or actual prevailing wage violation to the Project Labor Coordinator for review and enforcement, in accordance with Section 7.4. d) Contractor Replacement. City shall have the right to replace any delinquent Contractor in accordance with the terms and conditions of the applicable prime contract with City.
ARTICLE 9. WORK ASSIGNMENTS AND JURISDICTIONAL DISPUTES
9.1 No Jobsite Disruption. There will be no strikes, work stoppages, picketing, sympathy strikes, slowdowns, or other interference with the Covered Work because ofjurisdictional disputes between Unions. The assignment of work will be solely the responsibility of the Contractor performing the work involved; and such work assignments will be in accordance with the Plan for Settlement of Disputes.
9.2 Jurisdictional Disputes. All jurisdictional disputes on Covered Projects shall be settled and adjusted according to the present Plan for Settlement of Disputes established by the Building and Construction Trades Department or any other plan or method of procedure that may be adopted by the Docusign Envelope ID: F2B1A451- 4B15-4EEA-B618-612264FE68C1
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22 Building and Construction Trades Department. Decisions rendered shall be final and binding and conclusive on the Contractors and Unions party to this Agreement. a) Carpenters Union Disputes. If a dispute arising under this Article involves the Western States Regional Council of Carpenters or any of its subordinate bodies, an arbitrator shall be chosen by the procedures specified in Article V, Section 5, of the Plan for Settlement of Disputes from a list composed of Thomas Pagan and John Kageland the arbitrator’ s hearing on the dispute shall be held inthe offices of the Trades Council within fourteen ( 14) Working Days of the selection of the arbitrator. All other procedures shall be as specified in the Plan for Settlement of Disputes.
9.3 Failure to Comply. If any Union or Contractor fails to immediately and fully comply with the final decision rendered by the Plan for Settlement of Disputes, affected Union(s) or Contractor(s) may seek legal redress for such conduct, including, but not limited to, injunctive relief and/or damages.
9.4 Pre-Job Conference. It is required that a pre-job conference be held not later than fourteen 14) calendar days prior to the start of work by each Contractor for the Covered Project inaccordance with the procedure described in Article 18.
ARTICLE 10. MANAGEMENT RIGHTS
10.1 Contractor and City Rights. The Contractors and City have the sole and exclusive right and authority tooversee and manage construction operations on Covered Projects without any limitations unless expressly limited by a specific provision of this Agreement. In addition to the following and other rights of the Contractors enumerated in this Agreement, the Contractors expressly reserve their management rights and all the rights conferred upon them by law. The Contractor’ s rights include, but are not limited to, the right to:
a) Plan, direct, and control operations of all work; and b) Hire, promote, transfer, and lay off their own employees, respectively, as deemed appropriate to satisfy work and/or skill requirements; and c) Promulgate and require all employees to observe reasonable job rules and security and safety regulations; and
d) Discharge, suspend, or discipline their own employees for just cause; and e) Utilize, in accordance with City approval, any work methods, procedures, or techniques, and select, use, and install any types or kinds of materials, apparatus, or equipment, regardless of source of manufacture or construction; and f) Assign and schedule work at their discretion; and
g) Assign overtime, determine when it will be worked and the number and identity of employees engaged in such work, subject to such provisions in the applicable Master Labor Agreements requiring such assignments be equalized or otherwise made in a nondiscriminatory manner.
10.2 Specific City Rights. In addition to the following and other rights of City and Prime Contractor enumerated in this Agreement, City expressly reserves its management rights and all rights Docusign Envelope ID: F2B1A451- 4B15-4EEA-B618-612264FE68C1
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23 conferred on it by law and contract. City’ s rights (and those of the Project Labor Coordinator on its behalf) include, but are not limited to the right to:
a) Inspect any construction site or facility to ensure that the Contractor follows the applicable safety and other work requirements; and
b) At its sole option, terminate, delay, and/or suspend any and all portions of Covered Projects at any time; prohibit some or all work on certain days or during certain hours ofthe day to accommodate theongoing operations of City and/or to mitigate the effect of ongoing Covered Work on businesses and residents in the neighborhood ofthe Covered Project Sites; and/or require any other operational or schedule changes it deems necessary, in its sole judgment, to meet Project deadlines and remain a good neighbor to those in the area of the Covered Project; provided that, in order to permit the Contractors and Unions to make appropriate scheduling plans, City will use best efforts to provide the Project Labor Coordinator and the affected Contractor(s) and Union(s) with reasonable notice of any change it requires pursuant to this section; and
c) Approve any work methods, procedures, and techniques used by Contractors, whether or not said methods, procedures, or techniques are part of industry practices or customs; and
d) Investigate and process complaints or disagreements, through its Project Labor Coordinator or other representative.
10.3 Use of Materials. Subject to the terms of this Agreement, there shall be no limitations or restrictions by the Union upon a Contractor’ s choice of materials or design, nor, regardless of source or location, upon the full use and utilization of equipment, machinery, packaging, precast, prefabricated, prefinished, preassembled or modular materials, products, tools, or other labor-saving devices, subject to the application of the California Public Contract and Labor Codes. Generally, the onsite installation or application of such items shall be performed by the craft having jurisdiction over such work.
10.4 Special Equipment, Warranties, and Guaranties.
a) Itis recognized that certain equipment of a highly technical and specialized nature may be installed at Covered Project Sites. The nature of the equipment, together with the requirements for manufacturer’ s warranties, may dictate that it be prefabricated, pre-piped, and/or pre-wired, and that it be installed under the supervision and direction of the manufacturer’ s personnel. The Unions agree that such equipment is to be installed without incident.
b) The Parties recognize that the Contractor will, from time to time, initiate the use of new technology, equipment, machinery, tools, and other labor-saving devices and methods of performing Covered Work. The Unions agree that they will not restrict the implementation of such devices or work methods. The Unions will accept and will not refuse to handle, install, or work with any standardized and/or catalog parts, assemblies, accessories, prefabricated items, preassembled items, partially assembled items, modular products or materials, whatever their source of manufacture or construction.
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24 c) If any disagreement between the Contractor and the Unions concerning the methods of implementation or installation of any equipment, device, or item, or method of work arises, or whether a particular part of pre -assembled item is a standardized or catalog part or item, the work will proceed as directed by the Contractor, and the Parties shall immediately consult over the matter. If the disagreement is not resolved through this consultation, the affected Union(s) shall have the right to exercise the procedures set forth in Article 11.
ARTICLE 11. GRIEVANCES AND DISPUTES
11.1 Cooperation and Harmony on Covered Project Sites.
a) This Agreement is intended to establish and foster continued close cooperation between management and labor. The Trades Council shall assign a representative to each Covered Project for the purpose of assisting the Unions, and working with the Project Labor Coordinator, together with the Contractors, to complete construction of the Covered Projects economically, efficiently, continuously, and without any interruption, delays, or work stoppages.
b) The City, Contractors, and Unions, collectively and individually, realize the importance toall Parties of maintaining continuous and uninterrupted performance of Covered Work and agreetoresolve all disputes inaccordance withthegrievance provisions set forth in this Article 11, or as appropriate, those of Articles 8 or 9. c) The Project Labor Coordinator shall observe the processing of grievances under this Article 11 and Articles 8 and 9, including the scheduling and arrangement of facilities for meetings, selection of the arbitrator from the agreed-upon panel to hear thecase, and any other administrative matters necessary tofacilitatethetimely resolution of any dispute; provided, however, itis theresponsibility oftheprincipal Parties to any pending grievance to ensure the time limits and deadlines are met.
11.2 Processing Grievances. Any disputes arising out of and during the term of this Agreement involving the interpretation or application of the applicable Master Labor Agreement(s), but not alleged violations of Articles 8 or 9, shall be considered a grievance and subject to resolution under the following procedures.
a) Step 1.
1) Employee Grievances. When any employee subject to the provisions of this Agreement feels aggrieved by an alleged violation of this Agreement or the applicable Master Labor Agreement(s), the employee shall, through his local Union business representative or job steward, within ten ( 10) Working Days after theoccurrence oftheviolation, givenotice tothe work site representative of the involved Contractor stating the provision(s) alleged to have been violated, the details of the alleged violation and the remedy sought to resolve the matter. A grievance shall be considered null and voidif notice ofthe grievance is not given with theprescribed ten (10) Working Day period. A business representative of the local Union or the job steward and the work site representative of the involved Contractor shall meet and endeavor toadjust the matter withinten (10) Working Days Docusign Envelope ID: F2B1A451- 4B15-4EEA-B618-612264FE68C1
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25 after timely notice has been given. Ifthey fail to resolve the matter within the prescribed period, the grieving Party may, within ten ( 10) Working Days thereafter, pursue Step 2 of this grievance procedure, provided that the grievance is reduced to writing, setting forth the relevant information, including a short description thereof, the date on which the alleged violation occurred, and the provision(s) of the applicable agreement alleged to have been violated. Grievances and disputes settled at Step 1 shall be non-precedential, except as to the Parties directly involved. 2) Union or Contractor Grievances. Should the Union(s) or any Contractor have a dispute with the other Party(ies) and, if after conferring within ten 10) Working Days after the disputing Party knew or reasonably should have known of the facts or occurrence giving rise to the dispute, a settlement is not reached within five (5) additional Working Days, the dispute shall be reduced to writing and advanced to Step 2 in the manner prescribed as Step 1 in Section 11.2(a)(1) above.
b) Step 2. The business manager of the involved local Union or his or her designee, together with the site representative of the involved Contractor, and the labor relations representative of the Project Labor Coordinator, shall meet within seven 7) Working Days of the referral of the dispute to this second step to arrive at a satisfactory settlement thereof. Ifthe Parties fail toreach an agreement, the dispute may be appealed in writing in accordance with the provisions of Step 3 below within seven (7) calendar days after the initial meeting under Step 2. c) Step 3. If the grievance shall have been submitted but not resolved under Step 2, either the Unionor the Contractor Party may request in writingtothe Project Labor Coordinator (with copy[ies] to the other Party[ies]) within seven (7) calendar days after the initial Step 2 meeting, that the grievance by submitted to an arbitrator selected from the agreed-upon list below, on a rotational basis in the order listed.
Those arbitrators are: (1) Robert M. Hirsch; (2) Kenneth Perea; (3) Sara Adler; (4) John Kagel; (5) Michael Prihar; (6) Michael Rappaport; and (7) Fred Horowitz.
The decision ofthe arbitrator shall be final and binding on all Parties, and the costs and expenses of such arbitration shall be borne equally by the involved Contractor(s) and the involved Union(s).
d) Failure of the grieving Party to adhere to the time limits established herein shall render the grievance null and void. The time limits established herein may be extended only by written consent of the Parties involved at the particular step where theextension is agreed upon. The arbitrator shall have the authority to make decisions only on issues presented and shall not have the authority to change, amend, add to, or detract from any of the provisions of this Agreement or the applicable Master Labor Agreement.
11.3 Limitations on Use of Procedures. Procedures outlined in this Article 11 shall not be applicable toany alleged violation of Article 8 or 9, with the single exception that any employee discharged pursuant to Section 8.2 may apply the procedures of this Article 11 to determine only if he/she was, infact, engaged in a violation of Section 8.1.
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26 11.4 Notice. The Project Labor Coordinator shall be notified by the involved contractor of all actions at Steps 2 and 3. Further, the Project Labor Coordinator shall, upon its own request, be permitted to participate fully in all proceedings at such steps.
ARTICLE 12. COMPLIANCE
12.1 Compliance with All Laws. The Trades Council and all Unions, Contractors, and their employees shall comply with all applicable federal and state laws, ordinances, and regulations including, but not limited to, those relating to safety and health, employment, and applications for employment. All employees shall comply with the safety regulations established by the City, the Project Labor Coordinator, and the Contractor. Employees must promptly report any injuries or accidents to a supervisor.
ARTICLE 13. SAFETY AND PROTECTION OF PERSON AND PROPERTY
13.1 Safety.
a. It shall be the responsibility of each Contractor to ensure safe working conditions and employee compliance with all applicable safety laws and regulations and any safety rules contained herein or established by the City, the Prime Contractor, or the Contractor. It is understood that employees have an individual obligation to use diligent care to perform their work in a safe manner and to protect themselves and the property of the Contractor and City.
b. All Parties and Contractor employees shall be bound by the safety, security, and visitor rules established by the Prime Contractor, Contractor, and the City. These rules will be published and conspicuously posted. An employee’ s failure to satisfy his/her obligations under this section will subject him/her to discipline, up to and including discharge.
13.2 Drug and Alcohol Testing Policy. The Parties agree to adopt the Drug and Alcohol Testing Policy attached hereto as Exhibit D, which is the exclusive Drugand Alcohol Testing Policy for the Project.
13.3 Inspection. The inspection of shipments of equipment, machinery, and construction materials of every kind shall be performed at the discretion of the Contractor by individuals of its choice.
ARTICLE 14. TRAVEL, SUBSISTENCE, AND PROPERTY
14.1 Applicability. Travel expenses, travel time, subsistence allowances and/or zone rates, and parking reimbursements shall not be applicable to work under this Agreement, except totheextent provided for in any applicable prevailing wage determination. Parking for employees covered by this Agreement shall be provided by the Contractor(s) according to the provision of the applicable Master Labor Agreement(s).
ARTICLE 15. APPRENTICES
15.1 Importance of Training. The Parties recognize the need to maintain continuing support of the programs designed to develop adequate numbers of competent workers inthe construction industry, the obligation to capitalize on the availability of the City’s local work force, and the opportunities to provide continuing work on Covered Projects for Local Residents. To these ends, and consistent with all applicable laws and regulations, the Parties will facilitate, encourage, and assist Local Residents to commence and progress in Apprenticeship Programs and/or apprentice readiness programs in the construction industry leading to participation in such Apprenticeship Programs. The City, the Contractors, the Trades Council, Docusign Envelope ID: F2B1A451- 4B15-4EEA-B618-612264FE68C1
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27 and the Unions will work cooperatively to identify, or establish and maintain, effective programs and procedures for persons interested in entering the construction industry which will help prepare them for entry into Apprenticeship Programs. Apprentices, if utilized, must be enrolled in a California Apprenticeship Council-approved Apprenticeship Program.
15.2 Use of Apprentices.
a) The Unions and Contractors agree to cooperate in referring and employing Apprentices up to the maximum percentage allowed by the State Labor Code and the standards of each Joint Labor-Management Apprenticeship Program. The minimum ratios for Apprentice to journeyperson hours worked shall, at a minimum, comply with the applicable provisions of the California Labor Code relating to utilization of Apprentices. City, unless otherwise required by law, shall encourage such utilization, and both as to Apprentices and the overall supply of experienced workers, the Project Labor Coordinator will work with the Council, Apprenticeship Programs, and Contractors to assure appropriate and maximum utilization of Apprentices and the continuing availability of both Apprentices and journeypersons.
b) The Parties and Contractors will comply with all applicable laws and regulations in the request for dispatch and employment of Apprentices. c) The Parties agree that Apprentices will not be dispatched to Contractors working under this Agreement unless there is a journeyperson or other Contractor employee working on the Covered Project where the Apprentice is to be employed who is qualified to assist and oversee the Apprentice’ s progress through the Apprenticeship Program in which he/she is participating.
ARTICLE 16. WORK OPPORTUNITIES PROGRAM
16.1 Intent. The Parties to this Agreement support the development of increased numbers of skilled construction workers from among residents of the City and San Diego County to meet the labor needs of Covered Projects specifically and the requirements of the local construction industry generally.
Towards that end, the Parties agree to cooperate respecting the establishment of a Work Opportunities Program for Local Residents, the primary goals of which shall be to maximize construction work opportunities for Local Residents. In furtherance of the foregoing, the Unions specifically agree to:
a) Support a pre-apprenticeship program for Local Residents, including students, whereby residents will be trained in a pre-apprenticeship skill to enable them to gain employment/training within the signatory Unions; and b) Encourage the referral and utilization, to the extent permitted by law and hiring hall practices, of qualified Local Residents as journeymen, apprentices, and trainees on Covered Projects and entrance into such qualified apprenticeship and training programs as may be operating by signatory Unions. c) The Unions shall assist Local Residents in contacting the pre-apprenticeship program for the crafts and trades they are interested in. The Unions shall assist Local Residents who are seeking Union jobs on the Covered Projects and Union membership in assessing their work experience and giving them credit for verifiable past experience in their relevant craft or trade, including experience Docusign Envelope ID: F2B1A451- 4B15-4EEA-B618-612264FE68C1
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28 gained working for non-union Contractors. The Unions shall put on their rolls qualified bona fide Local Residents for work on the Covered Projects. d) Upon request, the Council shall make progress reports to the City on the Work Opportunities Program, including the number and employment disposition of Local Resident applicants who have been contacted, recruited, and participated in the Work Opportunities Program through their outreach efforts. This report shall identify individuals from traditionally underrepresented groups.
ARTICLE 17. HELMETS TO HARDHATS
17.1 Veterans Entry into Building and Construction Trades. The Parties recognize a desire to facilitate the entry into the building and construction trades of Veterans who are interested in careers inthe building and construction industry. The Contractors and Unions agree to utilize the services of the Center and the Center’ s “ Helmets to Hardhats” program as a resource for preliminary orientation, assessment and construction aptitude, referral toapprenticeship programs or hiringhalls, counseling and mentoring, support network, employment opportunities and other needs as identified by the Parties.
17.2 Integrated Database. The Unions and Contractors agree to coordinate with the Center to create and maintain an integrated database of Veterans interested in working on the Covered Projects and of apprenticeship and employment opportunities for the Covered Projects.
ARTICLE 18. PRE-JOB CONFERENCE
18.1 Pre-Job Conference Required. Each Contractor is required to conduct a pre-job conference with the Unions, not later than fourteen (14) calendar days prior to commencing the Covered Work. The purpose of the pre-job conference will be to, among other things, convey craft workforce needs, the schedule of Covered Work, Covered Project work rules, and propose preliminary Union work assignments.
The Project Labor Coordinator may work with the Prime Contractor and Trades Council to facilitate the scheduling of all pre-job conferences, but ensuring each Contractor conducts a pre-job conference in accordance with this Agreement is the responsibility of the Prime Contractor. All preliminary Union work assignments shall be disclosed by each Contractor at a pre-job conference. Should there be work within the scope of a Covered Contract for a Covered Project that was not previously assigned a pre-job conference, or additional work be added to the scope of a Covered Project, the Contractor(s) performing such Covered Work will conduct a separate pre-job conference. Any Union in disagreement with a proposed assignment shall notify the affected Contractor of its position in writing, with a copy sent to the Project Labor Coordinator, within seven ( 7) calendar days after the pre-job conference occurred. Within seven ( 7) calendar days after the period allowed for Union notices of disagreement with the Contractor’ s proposed assignments, but prior to the commencement of any Covered Work, the Contractor shall make final assignments in writing with copies sent to the Project Labor Coordinator and Trades Council.
18.2 Failure to Conduct. A Contractor’ s failure to conduct a pre-job conference in accordance with this Agreement is considered a breach of contract, and any affected Union may pursue a grievance pursuant to Article 11 of this Agreement to seek a remedy for such a violation. Provided, however, if the Contractor has conducted a pre-job conference in accordance with this Agreement, that Contractor is not required to participate in any additional pre-job conferences or mark-up meetings related to the original scope(s) of Covered Work assigned at the pre-job conference.
18.3 Project Labor Coordinator Participation. The Project Labor Coordinator may attend and facilitate each pre-job conference. At each pre-job conference, the Project Labor Coordinator shall address Docusign Envelope ID: F2B1A451- 4B15-4EEA-B618-612264FE68C1
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29 the programs, goals, and outcomes related to Local Resident employment, as well as the progress of implementing the Work Opportunities Program.
ARTICLE 19. LABOR/MANAGEMENT AND COOPERATION
19.1 Labor/Management Collaboration Meetings. The Parties will conduct periodic labor/management collaboration meetings, which will be chaired jointly by a designee of the City and a designee ofthe Trades Council. Theco-chairs shall determine thefrequency and scheduling ofthe meetings with the assistance of the Project Labor Coordinator. The purpose of the meetings shall be to update the Parties regarding the progress and schedule of Covered Projects, promote harmonious and stable labor management relations, ensure effective and constructive communication between labor and management Parties, advance the proficiency of work in the industry, and to evaluate and ensure an adequate supply of skilled labor for all Covered Projects. The Project Labor Coordinator shall prepare reports detailing the outcomes of the Local Resident and Apprentice utilization goals on each Covered Project, and the implementation and progress of the Work Opportunities Program. All Parties will be invited to attend the labor/management collaboration meetings. Substantive grievances or disputes shall not be reviewed or discussed at such meetings but shall instead be processed pursuant to the appropriate provisions of this Agreement.
ARTICLE 20. LEGAL ACTION
20.1 Legal Action. City, Trades Council, and Unions recognize the substantial legal costs including all attorney’ s fees and associated disbursements) that might accrue with regard to any legal challenge over this Agreement and related to claims directly challenging the legality of this Agreement, or a particular section or language that has been adopted herein. In the event of a legal challenge, the Trades Council, on behalf ofitself and affiliated Unions, agrees to seek to intervene inthelegal action and actively participate in the litigation or other action to defend the legality of this Agreement, or a particular section or language herein. The failure of the Trades Council to seek to intervene in the legal action and actively participate to defend the legality of this Agreement will constitute a material breach of this Agreement. In the event the Trades Council is denied leave to intervene in the legal action, the Trades Council shall have its counsel coordinate with counsel for the City, at the Trades Council’ s sole expense, regarding how the Trades Council can best support City’s legal position.
ARTICLE 21. SAVINGS AND SEVERABILITY
21.1 Savings Clause. It is not the intention of the City, the Project Labor Coordinator, the Contractor, or the Union Parties to violate any laws governing the subject matter of this Agreement. The Parties hereto agree that in the event any provision of this Agreement is finally held or determined to be illegal or voidas being incontravention of any applicable law orregulation, theremainder ofthe Agreement shall remain infull force and effect unless the part or parts so found to be void are wholly inseparable from the remaining portions of this Agreement. Further, the parties agree that if and when any provision(s) of this Agreement is finally held or determined to be illegal or void by a court of competent jurisdiction, the Parties will promptly enter into negotiations concerning the substantive effect of such decision for the purposes of achieving conformity withtherequirements of any applicable laws and then intent ofthe Parties hereto. If the legality of this Agreement is challenged and any form of injunctive relief is granted by any court, suspending temporarily or permanently the implementation ofthis Agreement, then the Parties agree that all Covered Projects that would otherwise be covered by this Agreement should continue to be bid and constructed without application ofthis Agreement so that there is no delay or interference with the ongoing planning, bidding, and construction of any Covered Project.
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30 21.2 Effect of Injunctions or Other Court Orders. The Parties recognize the right of the City to withdraw, at its absolute discretion, the utilization ofthe Agreement as part of any bid specification, should a court of competent jurisdiction issue any order, or any applicable statute that could result, temporarily or permanently, in the delay of the bidding, awarding, and/or construction of the Covered Project.
ARTICLE 22. WAIVER
22.1 Waiver. A waiver of, or a failure to assert, any provision of this Agreement by any or all of the Parties hereto shall not constitute a waiver of such provision inthe future. Any such waiver shall not constitute a modification of this Agreement or a change in the terms and conditions of this Agreement, and shall not relieve, excuse, or release any of the Parties from any of their rights, duties, or obligations hereunder.
ARTICLE 23. AMENDMENTS
23.1 Amendments. The provisions of this Agreement can be renegotiated, supplemented, rescinded, or otherwise altered only by mutual agreement in writing, hereafter signed by the City and the Trades Council.
ARTICLE 24. MISCELLANEOUS PROVISIONS
24.1 Construction. The use of masculine or feminine gender or titles in this Agreement should be construed as including both genders and not as gender limitations unless the Agreement clearly requires a different construction. Further, the use of Article titles and/or Section headings are for information only and carry no legal significance.
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1 IN WITNESS WHEREOF, this Project Labor Agreement is executed as of the day and year first set forth above.
CITY OF CHULA VISTA, a California charter SAN DIEGO COUNTY BUILDING AND city and municipal corporation CONSTRUCTION TRADES COUNCIL,
AFL-CIO
By: By:
Maria V. Kachadoorian Carol Kim
City Manager Business Manager
ATTEST:
By:
Kerry Bigelow
City Clerk
APPROVED AS TO FORM:
By:
Marco A. Verdugo
City Attorney
Signatures continue on following page]
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IGNATORY UNIONS
By:
Teamsters Local 481
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A-1
EXHIBIT A – LETTER OF ASSENT
To be signed by all Contractors awarded Covered Work prior to commencing work.
Contractor’ s Letterhead]
DATE
Project Labor Coordinator
Address
Address
Address
Attention:
Re: City of Chula Vista Project Labor Agreement
This Letter of Assent confirms that [ Name of Company] agrees to be party to and bound by the City of Chula Vista Project Labor Agreement, effective , 2024, as such agreement may be amended from time to time by the Parties or interpreted pursuant to its terms (the “ Agreement”). Capitalized terms used herein without definition shall have the meanings assigned to them in the Agreement. Such obligation to be a Party and bound by this Agreement shall extend to all Covered Work undertaken by this Contractor on the Covered Project pursuant to [Contract No. ], and Contractor shall require all of its subcontractors of all tiers to be similarly bound for all Covered Work by signing and furnishing you an identical Letter of Assent prior to their commencement of the Covered Work.
Sincerely,
Name of Company]
By:
Name and Title of Authorized Executive]
Copies of this Letter of Assent must be submitted to the Project Labor Coordinator and to the Trades Council consistent with Section 2.5(b)]
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EXHIBIT B – WORKFORCE DISPATCH REQUEST FORM
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Project LaborAgreement
City of Chula Vista PLA Workforce Dispatch Request Form Page 1 of 2 Workforce Dispatch Request Form
The City of ChulaVistaProject LaborAgreement (“PLA”) establishes a goal of at least ifty percent (50%) of the total craft hours on eachCoveredProject being performed byLocalHiresand at least thirtypercent (30%) of the total crafthourson eachCovered Project being performed by Disadvantaged Workers. The Unions and Contractors agree that Local Hires and Disadvantaged Workers shall be irstreferred for CoveredProjects when requested through use of thisWorkforce Dispatch Request Form.
CONTRACTOR USE ONLY Please complete and fax/ email this form to the applicable union to request craft workers that ful illthe hiring requirements for this project. After faxing/ emailing your request, please call the local union to verify receipt and substantiate their capacity to furnish workers as speci ied below. Please print and retain copies of your fax or email transmission for your records.
TO:
CC:
FROM:
Craft Classi ication JP APP * ** JP APP * ** JP APP * ** JP APP * ** JP APP * ** In accordance with PLA Article 4, Union Recognition and Employment, we are requesting the union: * Please provide priority referral of Local Hires, based on zip code residence, as described on the following page.** orreferral Please provide priority referral of Disadvantaged Workers, to the extent such status is known by the hiring hall source. See list of criteria on the following page.
WORKER REPORTING INSTRUCTIONS:
Reporting Date: Reporting Time:
Reporting To: On-Site Phone:
Project Name:
Project Location:
Special Instructions:
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City of Chula Vista PLA Workforce Dispatch Request Form Page 2 of 2 UNION USE ONLYPlease complete the “Union Use Only” section and fax or email both pages to the requesting Contractor and Project Labor Coordinator.
Date Dispatch Received:
Dispatch Received by:
Date Worker( s) Dispatched:
JP APP Tier 1 Tier 2 No Yes No JP APP Tier 1 Tier 2 No Yes No JP APP Tier 1 Tier 2 No Yes No Tier 1 Tier 2 No Yes No JP APP Tier 1 Tier 2 No Yes No JP APP Tier 1 Tier 2 No Yes No* theUnion, PLEASE NOTE: By marking the “No” box for either the “Local Hire” or “Disadvantaged Worker” categories, you are certifying on behalf of that the Union has exhausted all reasonable efforts to locate and dispatch such Local Hire or Disadvantaged Worker. A Tier 1 Local Hire is an individual domiciled in ChulaVista, CA. Below is a list of zip codes within ChulaVista, CA. 91902A 91910 5
Tier 2Local Hire isan individual domiciled inSanDiegoCounty, CA, outsideChulaVista, CA. Below isa listofzip codeswithin San Diego County, CA, excluding ChulaVista, CA. 91901 91905 91906 91916 919359194591950919629196391980 92003920049200792008920099201092011920149201992020920219202492025920269202792028920299203692037920409205492055920569205792058920599206092061920649206592066920679206992070920719207592078920819208292083920849208692091920939209692101921029210392104921059210692107921089210992110921159211692120921236921269213092135921369214092145921549215592161922599253692672A Disadvantaged Worker isaVeteran residing anywhereOR an individual domiciled inaDisadvantagedArea*** thatalsomeets one or more of the following conditions at the initial time of their employment on a Covered Project: 1. has no high school diploma or general education diploma (GED); 2. is homeless or has been homeless within the last12 months; 3. is a former foster youth; 4. is a custodial single parent; 5. is experiencing protracted unemployment (receiving unemployment bene its for at least three (3) months; 6. is a current recipient of government cash or food assistance bene its; 7. hasandHuman a document income at or below 100% of the Federal Poverty Level, as de ined by the department of Health or8. Services; is formerly incarcerated. Disadvantaged Area zip codes located in Chula Vista, CA include 91910 and 91911. A complete list of San Diego County Disadvantaged Area zip codes can be found here: www.sandag.org/ cba This form is not intended to replace a Union’ s Dispatch or Referral Form normally given to the employee when being dispatched to the jobsite.)
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EXHIBIT C - COUNCIL POLICY 160-03 (DISABLED VETERANS AND SMALL BUSINESS
ENTERPRISE PROGRAM)
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COUNCIL POLICY
CITY OF CHULA VISTA
SUBJECT: DISABLED VETERANS AND SMALL
BUSINESSENTERPRISE PROGRAM
POLICY
NUMBER
160-03
EFFECTIVE
DATE
12/6/2016
ADOPTED BY: Resolution No. 2016- 265 I DATED: 12/6/2016 AMENDED BY: Resolution No. (date ofresolution)
BACKGROUND
PAGE
1 OF4
Disabled Veterans have made immeasurable sacrifices to protect the citizens of this country. These sacrifices have not gone unnoticed. The State and various local agencies, whether city or county, have enacted certain programs to assist Disabled Veterans and provide them with opportunities to participate in the procurement of State and local contracts. Such programs are called " Disabled Veterans Business Enterprise" programs. Similar programs also exist for small businesses. Small businesses tend to be economic drivers of local economies, so their growth is an important aspect of the success and growth of communities. However, small businesses often don' t have sufficient understanding of government contracting practices to participate in a meaningful way in the government contracting process, so agencies have established " Small Business Enterprise" programs.
PURPOSE
It is the purpose of this Council Policy to establish a Disabled Veterans Business Enterprise and Small Business Enterprise Program to facilitate and encourage the participation of Disabled Veterans Business Enterprises ( DVBEs) and Small Business Enterprises ( SBEs) in City contracting through the establishment of DVBE and SBE participation goals. By including DVBE and SBE participation goals in City contracts, the City will be able to ensure that DVBEs and SBEs are provided with the opportunities, information, and encouragement to participate in City procurement.
POLICY
The City of Chula Vista has the authority to establish and adopt such a policy pursuant to the Charter of the City of Chula Vista. It is the policy of the City of Chula Vista to encourage the utilization and participation of DVBEs and SBEs in City procurements whenever practical and appropriate. To this end and to the extent not in conflict with other laws, the City Council, through this Policy, establishes a three- percent ( 3%) DVBE and three- percent ( 3%) SBE participation goal for all City contracts within the scope of this policy and authorizes the City Manager or his/her designee to establish procedures to implement this policy.
I. Scope
A. General Application: Excepting those contracts identified in subsection B, below, this policy shall apply to all ( 1) agreements, contracts, and purchase orders for commodities, services, supplies, or equipment awarded in accordance with Chula Vista Municipal Code § 2.56; and ( 2) Public Works contracts awarded in accordance with City Charter § 1009, provided such contracts are fundedto the extent of50% or more of their total costs fromCity funds.
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COUNCIL POLICY
CITY OF CHULA VISTA
SUBJECT: DISABLED VETERANS AND SMALL
POLICY
EFFECTIVE
BUSINESS ENTERPRISE PROGRAM
NUMBER
DATE PAG
160- 03 12/ 6/ 2016 2 OF 4
ADOPTED BY: Resolution No. 2016- 265 DATED: 12/ 6/ 2016 AMENDED BY: Resolution No. ( date of resolution)
B. Exceptions: this Policy shall not apply to:
1. Sole Source contracts.
2. Contracts necessitated by an emergency.
3. Contracts for which the Awarding Authority has determined that compliance with this Policy would be Impractical or Impossible.
4. Transfers of any interest in real or personal property, including leases.
5. Agreements or memorandums of understanding with another government agency.
6. Contracts with a private, nonprofit organization.
7. With respect to DVBE participation, contracts where the prime contractor on the contract is a DVBE.
8. With respect to SBE participation, contracts where the prime contractor on the contract is an SBE.
9. With respect to DVBE participation, all public works contracts where the procuremep, complies with any applicable federal or state DVBE requirements.
10. With respect to SBE participation, all public works contracts where the procurement complies with any applicable federal or state SBE requirements.
11. Public works contracts of less than $ 100, 000.
12. Cooperative or joint purchases in accordance with CVMC § 2. 56. 020( H)
13. When compliance with this Policy would conflict with requirements imposed by the federal or state government relating to the receipt or use of federal or state funds.
14. Contracts for commodities, services, supplies, or equipment of $100, 000 or less that are based on market rates awarded in accordance with CVMC § 2. 56. 090( B)( 2)
15. Where application of this Policy would conflict with any restrictions imposed on grant or donated funds.
16. Public Works Contracts in which Minority Business Enterprise ( MBE), Woman - Owned Business Enterprise ( WBE), and/ or Underutilized Disadvantaged Business Enterprise UDBE) goals are required by state or federal government entity.
Il. Definitions:
1. Awarding Authority" shall mean the body or individual granted the authority by the Chula Vista Charter or the CVMC to award a contract.
2. Disabled Veterans Business Enterprise" or " DVBE" shall have the same meaning as in California Military and Veterans Code § 999( b)( 7).
3. akeGo
Goal" shall mean a numerically expressed objective that contractors are required to mak,- C-3
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COUNCIL POLICY
CITY OF CHULA VISTA
SUBJECT: DISABLED VETERANS AND SMALL
POLICY
EFFECTIVE
BUSINESS ENTERPRISE PROGRAM
NUMBER
DATE PAGE
160- 03 12/ 6/ 2016 3 OF 4
ADOPTED BY: Resolution No. 2016- 265 DATED: 12/ 6/ 2016 AMENDED BY: Resolution No. ( date of resolution)
4. " Good Faith Efforts" shall mean those efforts taken to solicit the participation of DVBE and SBE bidders in the City' s procurement process, including, but not limited to: ( a) regular outreach to DVBEs and SBEs by City and prime contractors; ( b) providing information and training, if requested, on how DVBEs and SBEs may participate in the City' s procurement process, either as a prime contractor or as a subcontractor ( c) contacting DVBEs and SBEs via telephone, FAX, or other means to solicit said DVBEs' and SBE' s participation in the bidding and procurement opportunities; ( d) maintaining a list of DVBEs and SBEs willing and able to provide commodities, services, supplies, or equipment; ( e) incorporating competitive DVBE and SBE bid proposals in prime contractor' s bid; ( f) demonstrating and documenting that such efforts were taken to solicit bids from DVBEs and SBEs..
5. " Impracticality" or " Impossibility" shall mean that the there are no known DVBEs or SBEs that are willing or able to provide specific commodities, services, supplies, or equipment.
6. " Public Works" shall mean the construction, reconstruction, or repair of public buildings, streets, drains, sewers, utilities, parks and playgrounds, or other public capital facilities, and the supplies, materials, equipment or other contractual services for same.
7. " Small Business Enterprise" or " SBE" shall have the same meaning as in California Government Code § 14837( d)( 1).
III. General Requirements for Prime Contractors
A. Subject to any contrary provisions of state or federal law, where a prime contractor intends to use subcontractors on any contract within the scope of this policy as described in Section I, Scope," above, and the procurement is not exempt from participation, the prime contractor shall make Good Faith Efforts to meet or exceed the Goals of 3% DVBE and 3% SBE subcontractor participation.
B. Participation Calculation:
1. Except for " As Needed" contracts, such as job/ task order contracts, the percentage of the relevant participation goal ( DVBE or SBE) shall be calculated by taking the aggregate value of all DVBE subcontracts to determine DVBE participation and SBE subcontracts to determine SBE participation to be used on the project as a percentage of the total value of each such contract.
2. " As Needed" contract participation percentage calculation shall be based on value of each task order. Prime contractors subject to the participation requirements shall submit a DVBE and SBE subcontractor utilization plan for City' s review and approval prior to commencing work.
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COUNCIL POLICY
CITY OF CHULA VISTA
SUBJECT: DISABLED VETERANS AND SMALL
POLICY
EFFECTIVE
BUSINESS ENTERPRISE PROGRAM
NUMBER
DATE PAGE
160- 03 12/ 6/ 2016 40174
ADOPTED BY: Resolution No. 2016- 265 DATED: 12/ 6/ 2016 AMENDED BY: Resolution No. ( date of resolution)
IV. Establishment and Issuance of Guidelines for the Implementation of the DVBE and SBE Program.
A. The City Manager, in consultation with the affected departments, shall establish administrative guidelines for the implementation of the DVBE and SBE Program. The guidelines shall include, at a minimum:
1. An explanation of procedures, processes, and/ or actions that a contractor may perform to satisfy the Good Faith Efforts requirement of the DVBE and SBE Program.
2. The method of documenting a contractor' s Good Faith Efforts to comply with the DVBE and SBE Program goals of 3% DVBE and 3% SBE participation.
3. Documentation to be supplied to bidders to inform them of their obligations for and the manner of compliance with the DVBE and SBE Program.
4. Forms on which the City staff reviewing bids shall identify how a bidder has complied w' or failed to comply with the requirements of the DVBE and SBE Program.
5. Description of the protest process for those lowest bidders that have been determined by the City to be non- responsive based on the guidelines issued in accordance with this Policy.
B. The City Manager' s administrative guidelines may differ depending on the nature of the contract ( i.e. public works, equipment, materials, or services).
V. Failure to Demonstrate " Good Faith Efforts":
A. A bidder that fails to demonstrate " Good Faith Efforts" to meet the DVBE and SBE participation percentage may be considered " nonresponsive" and an award shall be made to the next lowest responsible and responsive bidder that complies with this policy.
B. The Awarding Authority, as determined by the City Charter and/ or the CVMC, may waive the DVBE and/ or SBE requirement if it finds that enforcement of the DVBE and/ or SBE requirement would preclude meaningful competition among vendors or that compliance will not be in the public interest.
VI. Effective Date of Policy. This Policy shall go into effect thirty ( 30) calendar days following the adoption of the administrative guidelines by the City Council.
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EXHIBIT D – DRUG AND ALCOHOL TESTING POLICY
The Parties recognize the problems that drug and alcohol abuse have created in the construction industry and the need to develop drug and alcohol abuse prevention programs. Accordingly, the Parties agree that in order to enhance the safety of the workplace and to maintain a drug and alcohol-free work environment, individual Contractors shall require applicants or employees to undergo drug and alcohol testing in accordance with this PLA and this policy, Exhibit D – Drug and Alcohol Testing Policy, hereafter the “Policy.”
1. It is understood that the use, possession, transfer, or sale of illegal drugs, narcotics, or other unlawful substances, as well as being under the influence of alcohol and the possession of or consuming alcohol is absolutely prohibited while employees are on the Contractor’ s job premises or while working on any jobsite in connection with work performed under the PLA.
2. No Contractor may implement a drug and alcohol testing program that does not conform in all respects to the provisions of this Policy.
3. No Contractor may implement drug and alcohol testing at any jobsite unless written notice is given to the Union setting forth the location of the jobsite, a description of the project under construction, and the name and telephone number of the Prime Contractor's project manager. Said notice shall be provided at the pre-job conferences for each Covered Project.
Failure to give such notice shall make any drug and alcohol testing engaged in by the Contractor a violation of the Agreement and subject to the Article 11 grievance procedure.
4. A Contractor who elects to implement drug and alcohol testing pursuant to this Policy shall require all craft employees on the Covered Project to be tested. With respect to individuals who become employed on the Covered Project subsequent to the proper implementation of a valid drug and alcohol testing program, such test shall be administered upon the commencement of employment on the project, whether by referral from a Union Dispatch Office, transfer from another project, or another method. Individuals who were employed on the project prior to proper implementation of a valid drug and alcohol testing program may only be subjected to testing for the reasons set forth in paragraphs 5(g)(l) through 5(g)(3) and paragraphs 6(a) through 6(e) of this Policy. Refusal to undergo such testing shall be considered sufficient grounds to deny employment on the project.
5. The following procedure shall apply to all drug and alcohol testing:
a. The Contractor may request urine samples only. The applicant or employee shall not be observed when the urine specimen is given. An applicant or employee, at his or her sole option, shall, upon request, receive a blood test in lieu of a urine test. No employee of the Contractor shall draw blood from a bargaining unit employee, touch or handle urine specimens, or in any way become involved in the chain of custody of urine or blood specimens. A Union business representative, subject to the approval of the individual applicant or employee, shall be permitted to accompany the applicant or Docusign Envelope ID: F2B1A451- 4B15-4EEA-B618-612264FE68C1