El Centro City Council
January 20, 2026

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the equipment and/or facilities unless OWNER has issued a notice of Beneficial Occupancy or notice of Partial Utilization for the warranted WORK. At start up, CONTRACTOR will be required to get his equipment and/or facilities ready to put into service.

13.7 EXTENDED WARRANTIES AND GUARANTEES - OWNER may at its sole discretion extend the one (1) year warranty period up to twenty-four (24) months, in which case CONTRACTOR shall maintain the warranties and guarantees. If such extension of the one (1) year warranty period causes an increase in the cost of the warranties and guarantees provided by CONTRACTOR, an adjustment in Contract Price shall be made as provided by the Contract Documents.

13.7.1 Extended Warranties and Guarantees - OWNER may extend the one (1) year Warranty period for up to twenty-four (24) additional months.

ARTICLE 14 -- PAYMENTS TO CONTRACTOR AND COMPLETION

14.1 BASIS FOR PAYMENT

14.1.1 Lump Sum Items

14.1.1.1 General - Items for which quantities are indicated as Lump Sum shall be paid for at the price indicated in the Bid. Such payment shall be full compensation for the items of WORK and all work appurtenant thereto.

14.1.1.2 Critical Path Method (“CPM”) Schedule Used For Payment - Payment for all lump sum costs and services shall be based on the value of WORK accomplished. The allocation of cost to CPM schedule activities will be utilized for payment computation.

14.1.1.3 Critical Path Method Schedule Required - CONTRACTOR shall submit to CONSTRUCTION MANAGER a detailed cost loaded and manpower loaded CPM schedule, to be used as a basis for determining progress payments in accordance with the General Requirements.

14.1.2 Unit Priced Items

14.1.2.1 General - Unit price items will be paid for based on equivalent quantities installed or performed. Unless otherwise specified, quantities of WORK shall be determined from measurements or dimensions in horizontal planes. However, linear quantities of pipe, piling, fencing and timber shall be considered as being the true length measured along the longitudinal axis. Unless otherwise provided in the Specifications, volumetric quantities shall be the product of the mean area of vertical or horizontal sections and the intervening horizontal or vertical dimension. CONTRACTOR and CONSTRUCTION MANAGER will agree on the unit quantity to be used for payment prior to its installation or removal when possible, or immediately after installation.

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14.1.2.2 Methods of Measurement - Materials and items of WORK which are to be paid for on the basis of measurement shall be measured in accordance with the methods stipulated in the particular sections involved.

14.1.2.3 Certified Weight - When payment is to be made on the basis of weight, the weighing shall be done on certified platform scales or, when approved by CONSTRUCTION MANAGER, on a completely automated weighing and recording system. CONTRACTOR shall furnish CONSTRUCTION MANAGER with duplicate licensed weighmaster’s certificates showing the actual net weights.

14.1.2.4 Units of Measurement - Measurements shall be in accordance with U.S. standard measures. A pound is an avoirdupois pound. A ton is two thousand (2,000) pounds avoirdupois.

The unit of liquid measure is the U.S. gallon.

14.2 PAYMENT

14.2.1 Wasted Or Rejected Material - Payment will not be made for materials wasted or disposed of in a manner not called for in the Contract Documents. This includes rejected material not unloaded from vehicles, material rejected after it has been placed and material placed outside of the plan lines. No compensation will be allowed for disposing of rejected or excess materials.

14.2.2 CONTRACTOR Retains Ownership - Payment shall not relieve CONTRACTOR from its obligations under the Agreement, nor shall such payment be construed to be acceptance of any of the WORK. Payment shall not be construed as the transfer of ownership of any equipment or materials to OWNER. Responsibility of ownership shall remain with CONTRACTOR who shall be obligated to store, protect, repair, replace, rebuild or otherwise restore any fully or partially completed WORK or structure for which payment has been made, or replace any materials or equipment required to be provided under the Agreement which may be damaged, lost, stolen or otherwise degraded in any way prior to final acceptance of the WORK.

14.2.3 Payment Does Not Affect Warranty - Guarantee and warranty periods shall not be affected by any payment but shall commence as specified in Article 13.6.2.

14.2.4 Stop Notice - If, within the time fixed by law, a properly executed notice to stop payment is filed with OWNER, due to CONTRACTOR’s failure to pay for labor or materials used in the WORK, all money due for such labor or materials will be withheld from payment to CONTRACTOR in accordance with applicable laws.

14.3 APPLICATION FOR PROGRESS PAYMENT

14.3.1 Payment Due Date - CONTRACTOR shall, on the payment application date designated by CONSTRUCTION MANAGER, submit to CONSTRUCTION MANAGER for review, an Application for Payment filled out and signed by CONTRACTOR covering the WORK completed

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as of the date of the application and accompanied by such supporting documentation as is required by the General Requirements.

14.3.2 Payment Application Content - The Application for Payment shall identify, as a subtotal, the amount of CONTRACTOR’s total earnings to date, plus the value of materials stored at the site which have not yet been incorporated in the WORK, and less a deductive adjustment for materials previously paid. Payment for such material shall not be construed as acceptance of the material.

14.3.3 Net Payment - The net payment due CONTRACTOR shall be the above-mentioned subtotal from which shall be deducted retainage and the total amount of all previous payments made to CONTRACTOR.

14.3.4 Retention - A retention of five (5) percent of each approved progress payment will be withheld until the work is fifty (50) percent complete; then OWNER may, at its option, refund that portion of retainage held by OWNER that is in excess of five (5) percent of the total of the WORK done to date and thereafter continue to retain five (5) percent of the value of all approved progress payment requests subsequently submitted. When the Notice of Completion is issued, OWNER at its option, may refund any portion of the remaining retention.

14.3.5 Retainage From Payments - CONTRACTOR may elect to receive one hundred (100) percent of payments due under the Contract Documents from time to time, without retention of any portion of the payment by OWNER, by depositing securities of equivalent value with OWNER in accordance with the provisions of section 22300 of the Public Contract Code. Such securities, if deposited by CONTRACTOR, shall be valued by OWNER, whose decision on valuation of the securities shall be final. Securities eligible for investment under this provision shall be limited to those listed in section 16430 of the Government Code, bank or savings and loan certificates of deposit, interest-bearing demand deposit accounts, standby letters of credit or any other security mutually agreed to by CONTRACTOR and OWNER.

14.3.6 Reinstating Retention - OWNER may reinstate up to five (5) percent retention of the total of the WORK done if OWNER determines, at its discretion, that CONTRACTOR is not performing the WORK satisfactorily or there is other specific cause for such withholding.

14.3.7 Products Stored On and Off Site - Storage and payment for material supplies and/or equipment which will be incorporated into the WORK shall be in accordance with the provisions of the General Requirements.

14.4 CONTRACTOR’S WARRANTY OF TITLE - CONTRACTOR warrants and guarantees that title to all work, materials and equipment covered by an Application for Payment, whether incorporated in the WORK or not, will pass to OWNER at the time of Final Payment free and clear of all liens.

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14.5 APPLICATIONS FOR PROGRESS PAYMENT - Thirty (30) Days after presentation of undisputed and properly submitted Application for Payment, the amount will become due and when due will be paid by OWNER to CONTRACTOR.

Any payment request that is disputed or determined to be improper shall be returned to CONTRACTOR not later than seven (7) Days after receipt accompanied by documentation describing the reason(s) why the payment request is not proper.

Any progress payment not made within thirty (30) Days of an undisputed and properly submitted payment request will require OWNER to pay interest as provided by Public Contract Code section 20104.50.

14.6 REJECT PAYMENT FOR DEFECTIVE WORK - CONSTRUCTION MANAGER may also refuse to recommend any such payment, or, because of subsequently discovered evidence or the results of subsequent inspections or tests, nullify any such payment previously recommended, to such extent as may be necessary in CONSTRUCTION MANAGER’s opinion to protect OWNER from loss because:

14.6.1 The WORK is defective, or completed WORK has been damaged requiring correction or replacement,

14.6.2 The Contract Price has been reduced by written amendment or Change Order,

14.6.3 OWNER has been required to correct Defective Work or complete WORK in accordance with Article 13.

14.6.4 CONSTRUCTION MANAGER has actual knowledge of the occurrence of any of the events enumerated in Article 15.

14.7 REJECTION OF PAYMENT BY OWNER - OWNER may refuse to make payment of the full amount recommended by CONSTRUCTION MANAGER because claims have been made against OWNER on account of CONTRACTOR’s performance of the WORK or liens have been filed in connection with the WORK or there are other items entitling OWNER to a credit against the amount recommended, but OWNER must give CONTRACTOR written notice within seven (7) Days (with a copy to CONSTRUCTION MANAGER) stating the reasons for such action.

14.8 SUBSTANTIAL COMPLETION

14.8.1 When CONTRACTOR considers the WORK ready for its intended use CONTRACTOR shall notify CONSTRUCTION MANAGER in writing that the WORK is substantially complete.

CONTRACTOR shall attach to this notice a list of all work items that remain to be completed.

14.8.2 Within a reasonable time thereafter, OWNER, CONTRACTOR and CONSTRUCTION MANAGER shall make an inspection of the WORK to determine the status of completion.

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14.8.3 If CONSTRUCTION MANAGER does not consider the WORK substantially complete, or the list of remaining work items to be comprehensive, CONSTRUCTION MANAGER will notify CONTRACTOR in writing giving the reasons therefore.

14.8.4 If CONSTRUCTION MANAGER considers the WORK substantially complete, CONSTRUCTION MANAGER will prepare and deliver to OWNER a notice of Substantial Completion, which shall fix the date of Substantial Completion. There shall be attached to the certificate a tentative list of items to be completed or corrected before Final Payment. At the time of delivery of the notice of Substantial Completion, CONSTRUCTION MANAGER will deliver to OWNER and CONTRACTOR a written recommendation as to division of responsibilities pending Final Payment between OWNER and CONTRACTOR with respect to security, operation, Safety, maintenance, heat, utilities, insurance and warranties and guarantees.

14.8.5 OWNER shall have the right to exclude CONTRACTOR from the WORK after the date of Substantial Completion, but OWNER shall allow CONTRACTOR reasonable access to complete or correct items on the list of remaining WORK items, or for warranty work.

14.9 PARTIAL UTILIZATION AND BENEFICIAL OCCUPANCY

14.9.1 Partial Utilization - OWNER shall have the right to utilize or place into service any item of equipment or other usable portion of the WORK which is substantially complete prior to completion of all of the WORK. Whenever OWNER plans to exercise said right, CONTRACTOR will be notified in writing with a notice of Partial Utilization signed by OWNER identifying the specific portion or portions of the WORK to be so utilized or otherwise placed into service.

Liquidated damages will not be affected.

14.9.2 Beneficial Occupancy - OWNER shall have the right to take control of the entire WORK if it is substantially completed. Whenever OWNER plans to exercise said right CONTRACTOR will be notified in writing with a notice of Beneficial Occupancy. Such use by OWNER will terminate liquidated damages.

14.9.3 Responsibility For Care and Maintenance - It shall be understood by CONTRACTOR that until Beneficial Occupancy or Partial Utilization notices are issued or start up begins, all responsibility for care and maintenance of all of the WORK shall be the responsibility of CONTRACTOR. Upon issuance of said written notice of Beneficial Occupancy or notice of Partial Utilization, OWNER will accept responsibility for the protection and maintenance of all such items or portions of the WORK described in the written notice.

14.9.4 CONTRACTOR Responsible For Completion - CONTRACTOR shall retain full responsibility for satisfactory completion of the WORK, regardless of whether a portion thereof has been partially utilized by OWNER.

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14.10 FINAL INSPECTION - Upon written notice from CONTRACTOR that the entire WORK or an agreed portion thereof is complete, CONSTRUCTION MANAGER will make a final inspection with OWNER and CONTRACTOR and will notify CONTRACTOR in writing of all particulars in which this inspection reveals that the WORK is incomplete or defective.

CONTRACTOR shall immediately take such measures as are necessary to complete such WORK or remedy such deficiencies.

14.11 FINAL APPLICATION FOR PAYMENT - After CONTRACTOR has completed all of the remaining work items referred to in Article 14, removed all temporary structures and utilities, cleared the site, delivered all maintenance and operating instructions, schedules, guarantees, Bonds, certificates of inspection, marked-up record documents and other documents, all as required by the Contract Documents, and after CONSTRUCTION MANAGER has indicated that the WORK is acceptable, CONTRACTOR may make application for Final Payment following the procedure for progress payments. The final Application for Payment shall be accompanied by all documentation called for in the Contract Documents, together with complete and legally effective releases or waivers satisfactory to OWNER of all liens arising out of or filed in connection with the WORK. If CONTRACTOR has specific claims outstanding he shall restate these claims by stating the nature of the claim, the basis for entitlement and the estimated value of the claim.

CONTRACTOR shall specifically release OWNER from any other claims not renewed.

14.12 FINAL PAYMENT AND ACCEPTANCE

14.12.1 If, on the basis of CONSTRUCTION MANAGER’s observation of the WORK during construction and final inspection, and CONSTRUCTION MANAGER’s review of the final Application for Payment and accompanying documentation, all as required by the Contract Documents, CONSTRUCTION MANAGER is satisfied that the WORK has been completed and CONTRACTOR’s other obligations under the Contract Documents have been fulfilled, CONSTRUCTION MANAGER will, within fourteen (14) Days after receipt of the final Application for Payment, indicate in writing CONSTRUCTION MANAGER’s recommendation of payment and present the Application for Payment to OWNER for payment. CONSTRUCTION MANAGER will also prepare a Notice of Completion.

14.12.2 After acceptance of the WORK by OWNER, OWNER will make Final Payment to CONTRACTOR of the amount remaining after deducting all prior payments and all amounts to be kept or retained under the provisions of the Contract Documents. OWNER will sign the Notice of Completion and file the Notice of Completion with the County Recorder.

14.13 LIQUIDATED DAMAGES

14.13.1 - Failure of CONTRACTOR to complete the WORK within the time allowed will result in damages being sustained by OWNER. For each consecutive calendar Day in excess of the time specified for completion of the WORK, CONTRACTOR shall pay to OWNER, or have withheld from monies due it, the sum provided for in the Contract Documents.

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14.13.2 Execution of the Agreement shall constitute agreement by OWNER and CONTRACTOR that specified liquidated damages is the minimum value of the costs and actual damage caused by failure of CONTRACTOR to complete the WORK within the allotted time; that such sum is liquidated damages and shall not be construed as a penalty, and that such sum will be deducted from Final Payment due CONTRACTOR if such delay in completion occurs.

14.14 PARTIAL RELEASE OF RETENTION AT SUBSTANTIAL COMPLETION - If, through no fault of CONTRACTOR, final completion of the WORK is significantly delayed and if CONSTRUCTION MANAGER so confirms, OWNER shall, upon receipt of CONTRACTOR’s final Application for Payment and recommendation of CONSTRUCTION MANAGER, and without terminating the Agreement, make payment of the balance due for that portion of the WORK fully completed and accepted. If the remaining balance to be held by OWNER for WORK not fully completed or corrected is less than the retainage stipulated in the Agreement, and if Bonds have been furnished as required in Article 5, the written consent of the surety to the payment of the balance due for that portion of the WORK fully completed and accepted shall be submitted by CONTRACTOR to CONSTRUCTION MANAGER with the Application for such payment. Such payment shall be made under the terms and conditions governing Final Payment, except that it shall not constitute a waiver of claims.

14.15 WAIVER OF CLAIMS - The making and acceptance of Final Payment will constitute:

14.15.1 OWNER - A waiver of all claims by OWNER against CONTRACTOR, except claims arising from unsettled liens, from Defective Work appearing after final inspection pursuant to Article 14, from failure to comply with the Contract Documents or the terms of any special guarantees specified therein, or from CONTRACTOR’s continuing obligations under the Contract Documents; and

14.15.2 CONTRACTOR - A waiver of all claims by CONTRACTOR against OWNER other than those previously made in writing and still unsettled and specifically renewed in the Application for Payment.

14.16 RELEASE OF RETAINAGE AND OTHER DEDUCTIONS - After executing the necessary documents to initiate the lien period, and not more than thirty-five (35) Days thereafter (based on a thirty (30) Day lien filing period and five (5) Day processing time), OWNER will release to CONTRACTOR the retainage funds withheld pursuant to the Agreement, less any deductions to cover pending third-party claims and liquidated damages against CONTRACTOR.

14.17 CONTRACTOR’S CONTINUING OBLIGATION - CONTRACTOR’s obligation to perform and complete the WORK in accordance with the Contract Documents shall be absolute.

Neither recommendation of any progress or Final Payment by CONSTRUCTION MANAGER, nor the issuance of a Notice of Completion, nor any payment by OWNER to CONTRACTOR under the Contract Documents, nor any use or occupancy of the WORK or any part thereof by OWNER, nor any act of acceptance by OWNER nor any failure to do so, nor any review of a Shop Drawing or sample submittal, will constitute an acceptance of work not in accordance with the

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Contract Documents or a release of CONTRACTOR’s obligation to perform the WORK in accordance with the Contract Documents.

14.18 TERMINATION OF LIABILITY OF OWNER - The acceptance by CONTRACTOR of final payment referred to in Article 14 herein, shall be a release of OWNER and CONSTRUCTION MANAGER from all claims of liability to CONTRACTOR for anything done or furnished for, or relating to, the WORK or for any act or neglect of OWNER or of any person relating to or affecting the WORK, except demands against OWNER for the remainder, if any, of the amounts kept or retained under the provisions of Article 14 herein; and excepting pending, unresolved claims renewed with the final Application for Payment.

ARTICLE 15 -- SUSPENSION OF WORK AND TERMINATION

15.1 SUSPENSION OF WORK BY OWNER - OWNER, acting through CONSTRUCTION MANAGER, may, at any time and without cause, suspend the WORK or any portion thereof for a period of not more than ninety (90) Days by notice in writing to CONTRACTOR.

CONTRACTOR shall resume the WORK on receipt from CONSTRUCTION MANAGER of a notice of resumption of WORK. CONTRACTOR may submit a request for a change in the Contract Price or of the Contract Time, or both, directly attributable to the suspension as provided in Articles 11 and 12.

15.2 ARCHAEOLOGICAL AND PALEONTOLOGICAL DISCOVERIES

15.2.1 If a discovery is made of an archaeological or paleontological interest, CONTRACTOR shall immediately cease operations in the area of the discovery and shall not continue until ordered by CONSTRUCTION MANAGER. This suspension of work may exceed the ninety (90) Day limit without creating a CONTRACTOR right to terminate the Agreement. When resumed, operations within the area of the discovery shall be as directed by CONSTRUCTION MANAGER.

15.2.2 Discoveries which may be encountered may include, but not be limited to, dwelling sites, stone implements or other artifacts, animal bones, human bones, fossils or any item with culturally significance.

15.2.3 CONTRACTOR shall be entitled to an extension of time and compensation in accordance with the provisions of the Contract Documents.

15.3 TERMINATION OF AGREEMENT BY OWNER FOR CAUSE

15.3.1 In the event of default by CONTRACTOR, OWNER shall give fourteen (14) Days written notice to CONTRACTOR of OWNER’s intent to terminate the Agreement and provide CONTRACTOR opportunity to remedy the conditions constituting the default.

15.3.2 CONTRACTOR Default - It shall be considered a default by CONTRACTOR when CONTRACTOR:

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15.3.2.1 Declares bankruptcy, becomes insolvent, assigns its assets for the benefit of its creditors, or is unable to pay debts as they become due;

15.3.2.2 Fails to provide materials or workmanship meeting the requirements of the Contract Documents, and fails to correct the Defective Work as required by Article 13;

15.3.2.3 Disregards or violates provisions of the Contract Documents or CONSTRUCTION MANAGER’s instructions;

15.3.2.4 Fails to prosecute the WORK according to the approved progress schedule;

15.3.2.5 Fails to provide a qualified superintendent, competent workers or materials or equipment meeting the requirements of the Contract Documents;

15.3.2.6 Fails to maintain license or insurance.

15.3.3 If CONTRACTOR fails to remedy the conditions constituting default within the time allowed, OWNER may then issue the notice of termination.

15.3.4 In the event the Agreement is terminated in accordance with Article 15, OWNER may take possession of the WORK and may complete the WORK by whatever method or means OWNER may select. The cost of completing the WORK shall be deducted from the balance which would have been due CONTRACTOR had the Agreement not been terminated and the WORK completed in accordance with the Contract Documents. If such cost exceeds the balance which would have been due, CONTRACTOR shall pay the excess amount to OWNER. If such cost is less than the balance which would have been due, CONTRACTOR shall not have claim to the difference.

15.4 RIGHTS OF OWNER PRESERVED - Where CONTRACTOR’s services have been so terminated by OWNER, the termination will not affect any rights or remedies of OWNER against CONTRACTOR then existing or which may thereafter accrue. Any retention or payment of monies due CONTRACTOR by OWNER will not release CONTRACTOR from liability.

15.5 TERMINATION BY OWNER FOR JUST CAUSE - OWNER may terminate the Contract for just cause at its own discretion or when conditions encountered during the WORK make it impossible or impractical to proceed, or when OWNER is prevented from proceeding with the Agreement by act of God, by law or by official action of a public authority.

15.5.1 Termination for Convenience of OWNER

15.5.1.1 Termination of CONTRACTOR’s Performance of WORK - OWNER may terminate, subject to the express terms and conditions set forth below, CONTRACTOR’s performance of work under this Agreement, in whole or, from time to time, in part, if OWNER’s City Council does not appropriate sufficient monies to fund the Agreement. The City Manager shall terminate

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on behalf of OWNER by delivering to CONTRACTOR a notice of termination, in writing, specifying the extent of termination and the effective date

15.5.1.2 Notice of Termination - After receipt of the notice of termination, and except as otherwise directed by OWNER’s City Manager, CONTRACTOR shall immediately proceed as follows:

15.5.1.2.1 Stop WORK immediately or as specified in the notice;

15.5.1.2.2 Immediately place no further subcontracts for materials, services or facilities, except as necessary to complete any authorized, continued portion of the Agreement;

15.5.1.2.3 Immediately terminate all subcontracts to the extent they relate to the WORK terminated;

15.5.1.2.4 With approval by OWNER’s City Manager, settle all outstanding obligations arising from the termination of subcontracts, the approval of which will be final for purposes of this clause;

15.5.1.2.5 As directed by OWNER’s City Manager, transfer the title and deliver to OWNER, completed or partially completed drawings, plans, calculations, Specifications and any other documents and records that, if the Agreement has been completed, would be required to be furnished to OWNER;

15.5.1.2.6 Complete performance of the WORK not terminated;

15.5.1.2.7 Take any action that may be necessary, or that OWNER’s City Manager may direct, for the protection and preservation of the property related to the Contract Documents that is in the possession of CONTRACTOR and in which OWNER has or may acquire an interest.

15.5.1.3 Removal of CITY Property - CONTRACTOR may request OWNER to remove OWNER’s property or enter into an agreement for its storage. Within sixty (60) Days, OWNER will accept title of property and remove it or enter into a storage agreement.

15.5.1.4 Termination Settlement - After termination, CONTRACTOR shall submit a final termination settlement proposal to OWNER’s City Manager in the form and with the certification prescribed by OWNER’s City Manager. CONTRACTOR shall submit the proposal promptly, but not later than six (6) months from the effective date of termination, unless extended in writing, by OWNER’s City Manager upon written request of CONTRACTOR within this six (6) month period. However, if OWNER’s City Manager determines that the facts justify it, a termination settlement proposal may be received and acted on after six (6) months or any extension. If CONTRACTOR fails to submit the proposal within the time allowed, OWNER may, in good faith, determine, on the basis of information available, the fair and reasonable amount, if any, due CONTRACTOR as a result of the termination and pay the amount determined. If CONTRACTOR does not agree that the amount determined by OWNER’s City Manager is fair and reasonable, and

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if CONTRACTOR gives notice of such disagreement to OWNER in accordance with this paragraph of the Agreement within thirty (30) Days of receipt of payment, then the amount due shall be as fixed in a court of law.

15.5.1.5 Payment for CONTRACTOR Due to Termination - Subject to the above paragraph, CONTRACTOR and OWNER’s City Manager may agree upon the whole or any part of the amount to be paid because of the termination. The amount may include a reasonable allowance for profit on work done. However, the agreed amount, exclusive of costs shown in Paragraph

15.5.1.6.3 below, may not exceed the total dollar amount authorized by OWNER as reduced by (1) the amount of payments previously made; and (2) the Contract Price of work not terminated.

The Contract Documents shall be amended, and CONTRACTOR paid the agreed amount. The paragraph below shall not limit, restrict or affect the amount that may be agreed upon to be paid under this paragraph.

15.5.1.6 Failure to Agree on Payment - If CONTRACTOR and OWNER fail to agree on the whole amount to be paid because of the termination of WORK, OWNER shall pay CONTRACTOR the fair and reasonable amounts determined in good faith by OWNER as follows, but without duplication of any amounts agreed above:

15.5.1.6.1 The Contract Price for completed services accepted by OWNER not previously paid for, adjusted for any saving of freight and other charges.

15.5.1.6.2 The total of:

15.5.1.6.2.1 The costs incurred in the performance of the WORK terminated, including initial costs and preparatory expense allocable thereto, but excluding any costs’ attributable to services paid or to be paid under Paragraph 15.5.1.6;

15.5.1.6.2.2 The fair and reasonable cost of settling and paying termination settlement proposals under terminated subcontracts that are properly chargeable to the terminated portion of the Agreement if not included in paragraph above; and

15.5.1.6.2.3 A sum, as profit on the above paragraph determined by OWNER’s City Manager to be fair and reasonable under the circumstances; however, if it appears that CONTRACTOR would have sustained a loss on the entire Agreement had it been completed, OWNER shall allow no profit under this paragraph and shall reduce the settlement to reflect the indicated rate of loss.

15.5.1.6.3 The reasonable costs of settlement of the WORK terminated, including:

15.5.1.6.3.1 Accounting, legal, clerical and other expenses reasonably necessary for the preparation of termination of settlement proposals and supporting data;

15.5.1.6.3.2 The termination and settlement of subcontracts (excluding the amounts of such settlements); and

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15.5.1.6.3.3 Storage, transportation and other costs incurred, reasonable necessary for the preservation, protection or disposition of property in which OWNER has or may acquire an interest.

15.5.1.7 Dispute of Payment - If CONTRACTOR does not agree that the amount determined by OWNER’s City Manager under the paragraph above is fair and reasonable and if CONTRACTOR gives notice of such disagreement to OWNER in accordance with Paragraph 15.5.1.4 of this Contract within thirty (30) Days of receipt of payment, then the amount due shall be as determined in a court of law.

15.5.1.8 Payment for Property Destroyed, Lost Stolen or Damaged - Except to the extent that OWNER expressly assumed the risk of loss, OWNER’s City Manager shall exclude from the amounts payable to CONTRACTOR under Paragraph 15.5.1.6 above, the fair value, as determined by OWNER’s City Manager, of property that is destroyed, lost, stolen or damaged so as to become undeliverable to OWNER.

15.5.1.9 Determination of Amount Due CONTRACTOR - In arriving at the amount due CONTRACTOR under this clause, there shall be deducted:

15.5.1.9.1 All unliquidated advance or other payments to CONTRACTOR under the terminated portion of this Agreement;

15.5.1.9.2 Any claim which OWNER has against CONTRACTOR under this Agreement; and

15.5.1.9.3 The agreed price for, or the proceeds of sale of, materials, supplies or other things acquired by CONTRACTOR or sold under the provisions of this clause and not recovered by or credited to OWNER.

15.5.2 Partial Termination - If the termination is partial, CONTRACTOR may file a proposal with OWNER’s City Manager for an equitable adjustment of the price(s) of the continued portion of the Agreement. OWNER shall make any equitable adjustment agreed upon. Any proposal by CONTRACTOR for an equitable adjustment under this clause shall be requested within ninety (90) Days from the effective date of termination unless extended, in writing, by OWNER’s City Manager.

15.5.2.1 Partial Termination Payment - OWNER may, under the terms and conditions it prescribes, make partial payment and payments against costs incurred by CONTRACTOR for the terminated portion of the Agreement if OWNER’s City Manager believes the total of these payments will not exceed the amount to which CONTRACTOR will be entitled. If the total payments exceed amount finally determined to be due, CONTRACTOR shall repay the excess to OWNER upon demand, together with interest. Interest shall be at a rate of six (6) percent per annum compounded daily and shall be computed for the period from the date the excess payment is received by CONTRACTOR to the date the excess is repaid. Interest shall not be charged on

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any excess payment due to a reduction in CONTRACTOR’s termination settlement proposal because of retention or disposition, or a later date determined by OWNER’s City Manager because of the circumstances.

15.5.5.3 Records and Documents Relating to Termination - Unless otherwise provided in the Agreement or by statute, CONTRACTOR shall maintain all records and documents relating to the terminated portion of this Agreement for three (3) years after final settlement. This includes all books and other evidence bearing on CONTRACTOR’s costs and expenses under this Agreement.

CONTRACTOR shall make these records and documents available to OWNER, at CONTRACTOR’s office, at all reasonable times, without any direct charge. If approved by OWNER’s City Manager, photographs, microphotographs or other authentic reproductions may be maintained instead of original records and documents.

15.6 TERMINATION OF AGREEMENT BY CONTRACTOR - CONTRACTOR may terminate the Agreement upon ten (10) Days written notice to OWNER, whenever:

15.6.1 the WORK has been suspended under the provisions of Article 15, for more than ninety (90) consecutive Days through no fault or negligence of CONTRACTOR, and notice to resume work or to terminate the Agreement has not been received from OWNER within this time period; or,

15.6.2 OWNER should fail to pay CONTRACTOR any monies due him in accordance with the terms of the Contract Documents and within ninety (90) Days after presentation to CONSTRUCTION MANAGER by CONTRACTOR of a request therefor, unless within said ten (10) Day period OWNER shall have remedied the condition upon which the payment delay was based.

15.6.3 In the event of such termination, CONTRACTOR shall have no claims against OWNER except for those claims specifically enumerated in Article 15, herein, and as determined in accordance with the requirements of said paragraph.

ARTICLE 16 - DISPUTES

16.1 GENERAL - All claims, counterclaims, disputes and other matters in question arising under, or relating to, the Contract Documents and/or the breach thereof shall be processed in accordance with the provisions of this Article and are subject to audit by OWNER’s internal audit staff in accordance with Article 17.

16.2 REQUESTS FOR CHANGE

16.2.1 CONTRACTOR’s Right To Request a Change - In accordance with Articles 11 and 12, CONTRACTOR may request a change in the Contract Price or an extension of the Contract Time.

Such a request shall be in writing, and shall be delivered to CONSTRUCTION MANAGER within the time periods outlined in Articles 11 and 12.

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16.2.2 Initial Determination - CONSTRUCTION MANAGER shall make an initial determination on CONTRACTOR’s request in writing, within twenty (20) working Days of receipt of the requested supporting data.

16.2.3 CONTRACTOR Appeal and Claim - Should CONTRACTOR disagree with CONSTRUCTION MANAGER’s initial determination, CONTRACTOR may file a Claim requesting a final determination from CONSTRUCTION MANAGER. Such a request shall be in writing, and shall be delivered within twenty (20) working Days after receipt of CONSTRUCTION MANAGER’s initial determination, and after certifying his Claim in accordance with Paragraph 16.3.

16.2.4 Waiver Of Rights - Failure of CONTRACTOR to notify CONSTRUCTION MANAGER and deliver supporting data in accordance with the time periods outlined above or failure to respond to CONSTRUCTION MANAGER’s initial determination within the time period outlined in this paragraph, shall be deemed to be a waiver of objection or right to further Claim of this matter.

16.3 CLAIMS

16.3.1 Definition of Claim - A Claim means a written demand by CONTRACTOR seeking an adjustment in Contract Price and payment of monies so due, an extension or shortening in Contract Time, or other relief arising under or relating to the Agreement following denial of CONTRACTOR’s request for a CONSTRUCTION MANAGER’s initial determination. A written demand by CONTRACTOR seeking the payment of money or an extension of time is not a Claim under this Article until certified as required below. A voucher, invoice or other routine Application for Payment that is not in dispute when submitted, is not a Claim under this Article.

16.3.2 Claim Arising Under The Agreement - A Claim arising under the Agreement, unlike a Claim relating to the Agreement, is a Claim that can be resolved under an Agreement provision that provides for or excludes the relief sought by the claimant. Such Claims shall be resolved under the applicable provisions of the Agreement.

16.3.3 Period Of Claim - For any Claim under this Article to be valid, it shall be based upon written notice delivered by CONTRACTOR to CONSTRUCTION MANAGER promptly, but in no event later than twenty (20) working Days, after receipt of CONSTRUCTION MANAGER’s initial determination as outlined in Paragraph 16.2. The responsibility to substantiate Claims shall rest with the party making the Claim.

16.3.4 Claim Certification Requirements - For all CONTRACTOR Claims seeking an increase in Contract Price or Contact Time, CONTRACTOR shall submit with the Claim an affidavit certifying that:

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16.3.4.1 Claim Made In Good Faith - The Claim is made in good faith, and the amount claimed accurately reflects the adjustments in Contract Price or Contract Time for which CONTRACTOR believes OWNER is liable, and covers all direct, supplemental, indirect, consequential, serial and cumulative costs and delays to which CONTRACTOR is entitled as a result of the occurrence of the claimed event;

16.3.4.2 Cost And Pricing Data - Supporting cost and pricing data are current, accurate, complete and represent the best of CONTRACTOR’s knowledge and belief; and,

16.3.4.3 CONTRACTOR’s Agent - If CONTRACTOR is an individual, the affidavit shall be executed by that individual; if CONTRACTOR is not an individual, the affidavit shall be executed by a senior company official in charge at CONTRACTOR’s plant or location involved or a responsible officer or general partner of CONTRACTOR.

16.3.5 Progress Schedule Analysis - All Claims for time shall be supported by an analysis of the CPM Progress Schedule detailing the impact of the claimed work on specific impacted schedule activities.

16.4 CLAIM RESOLUTION PROCESS

16.4.1 CONTRACTOR Claim - CONTRACTOR must submit his Claim certification and request for CONSTRUCTION MANAGER’s Final Determination to OWNER within twenty (20) working Days of receipt of CONSTRUCTION MANAGER’s initial determination.

16.4.2 CONSTRUCTION MANAGER Final Determination - CONSTRUCTION MANAGER must make a final written determination within twenty (20) working Days after receipt of CONTRACTOR’s certified Claim and written request for a final determination.

16.4.3 CONTRACTOR Notice - Should CONTRACTOR disagree with CONSTRUCTION MANAGER’s final determination, CONTRACTOR must submit a written request for a settlement meeting with OWNER to CONSTRUCTION MANAGER within fifteen (15) working Days.

16.4.4 Settlement Meeting - Within fifteen (15) working Days of receipt of CONTRACTOR’s request for settlement meeting, OWNER will schedule a settlement meeting with CONTRACTOR’s representative. This meeting will be an opportunity for CONTRACTOR to explain his Claim to OWNER. If a settlement agreement cannot be reached, OWNER will proceed to make his written determination.

16.4.5 OWNER Written Determination - OWNER shall make a written determination within twenty (20) working Days after the settlement meeting. OWNER’s determination shall be final and binding on CONTRACTOR unless CONTRACTOR notifies OWNER and CONSTRUCTION MANAGER in writing of his objection within fifteen (15) working Days after receipt of OWNER’s determination. Failure to give notice of objection within said fifteen (15) working Days period shall be deemed to be a waiver of his right to pursue the Claim.

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Notwithstanding anything to the contrary, the following provisions shall apply regarding claims:

As set out in Public Contract Code Section 9204 (incorporated as pages CD24 to CD27), this provision shall apply to any claim by a contractor in connection with a public works project. (c) For purposes of this section:
(1) “Claim” means a separate demand by a contractor sent by registered mail or certified mail with return receipt requested, for one or more of the following:
(A) A time extension, including, without limitation, for relief from damages or penalties for delay assessed by a public entity under a contract for a public works project. (B) Payment by the public entity of money or damages arising from work done by, or on behalf of, the contractor pursuant to the contract for a public works project and payment for which is not otherwise expressly provided or to which the claimant is not otherwise entitled. (C) Payment of an amount that is disputed by the public entity. (2) “Contractor” means any type of contractor within the meaning of Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code who has entered into a direct contract with a public entity for a public works project. (3) (A) “Public entity” means the City of El Centro.
(4) “Public works project” means the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind. (5) “Subcontractor” means any type of contractor within the meaning of Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code who either is in direct contract with a contractor or is a lower tier subcontractor. (d) (1) (A) Upon receipt of a claim pursuant to this section, the public entity to which the claim applies shall conduct a reasonable review of the claim and, within a period not to exceed 45 days, shall provide the claimant a written statement identifying what portion of the claim is disputed and what portion is undisputed. Upon receipt of a claim, a public entity and a contractor may, by mutual agreement, extend the time period provided in this subdivision. (B) The claimant shall furnish reasonable documentation to support the claim. (C) If the public entity needs approval from its governing body to provide the claimant a written statement identifying the disputed portion and the undisputed portion of the claim, and the governing body does not meet within the 45 days or within the mutually agreed to extension of time following receipt of a claim sent by registered mail or certified mail, return receipt requested, the public entity shall have up to three days following the next duly publicly noticed meeting of the governing body after the 45-day period, or extension, expires to provide the claimant a written statement identifying the disputed portion and the undisputed portion. (D) Any payment due on an undisputed portion of the claim shall be processed and made within 60 days after the public entity issues its written statement. If the public entity fails to issue a written statement, paragraph (3) shall apply.
(2) (A) If the claimant disputes the public entity’s written response, or if the public entity fails to respond to a claim issued pursuant to this section within the time prescribed, the claimant

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may demand in writing an informal conference to meet and confer for settlement of the issues in dispute. Upon receipt of a demand in writing sent by registered mail or certified mail, return receipt requested, the public entity shall schedule a meet and confer conference within 30 days for settlement of the dispute.
(B) Within 10 business days following the conclusion of the meet and confer conference, if the claim or any portion of the claim remains in dispute, the public entity shall provide the claimant a written statement identifying the portion of the claim that remains in dispute and the portion that is undisputed. Any payment due on an undisputed portion of the claim shall be processed and made within 60 days after the public entity issues its written statement. Any disputed portion of the claim, as identified by the contractor in writing, shall be submitted to nonbinding mediation, with the public entity and the claimant sharing the associated costs equally. The public entity and claimant shall mutually agree to a mediator within 10 business days after the disputed portion of the claim has been identified in writing. If the parties cannot agree upon a mediator, each party shall select a mediator and those mediators shall select a qualified neutral third party to mediate with regard to the disputed portion of the claim. Each party shall bear the fees and costs charged by its respective mediator in connection with the selection of the neutral mediator. If mediation is unsuccessful, the parts of the claim remaining in dispute shall be subject to applicable procedures outside this section.
(C) For purposes of this section, mediation includes any nonbinding process, including, but not limited to, neutral evaluation or a dispute review board, in which an independent third party or board assists the parties in dispute resolution through negotiation or by issuance of an evaluation.

Any mediation utilized shall conform to the timeframes in this section. (D) Unless otherwise agreed to by the public entity and the contractor in writing, the mediation conducted pursuant to this section shall excuse any further obligation under Section 20104.4 to mediate after litigation has been commenced. (E) This section does not preclude a public entity from requiring arbitration of disputes under private arbitration or the Public Works Contract Arbitration Program, if mediation under this section does not resolve the parties’ dispute.
(3) Failure by the public entity to respond to a claim from a contractor within the time periods described in this subdivision or to otherwise meet the time requirements of this section shall result in the claim being deemed rejected in its entirety. A claim that is denied by reason of the public entity’s failure to have responded to a claim, or its failure to otherwise meet the time requirements of this section, shall not constitute an adverse finding with regard to the merits of the claim or the responsibility or qualifications of the claimant. (4) Amounts not paid in a timely manner as required by this section shall bear interest at 7 percent per annum.
(5) If a subcontractor or a lower tier subcontractor lacks legal standing to assert a claim against a public entity because privity of contract does not exist, the contractor may present to the public entity a claim on behalf of a subcontractor or lower tier subcontractor. A subcontractor may request in writing, either on his or her own behalf or on behalf of a lower tier subcontractor, that the contractor present a claim for work which was performed by the subcontractor or by a lower tier subcontractor on behalf of the subcontractor. The subcontractor requesting that the claim be presented to the public entity shall furnish reasonable documentation to support the claim. Within 45 days of receipt of this written request, the contractor shall notify the subcontractor in writing as

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to whether the contractor presented the claim to the public entity and, if the original contractor did not present the claim, provide the subcontractor with a statement of the reasons for not having done so.
(e) The text of this section or a summary of it shall be set forth in the plans or specifications for any public works project that may give rise to a claim under this section. (f) A waiver of the rights granted by this section is void and contrary to public policy, provided, however, that (1) upon receipt of a claim, the parties may mutually agree to waive, in writing, mediation and proceed directly to the commencement of a civil action or binding arbitration, as applicable; and (2) a public entity may prescribe reasonable change order, claim, and dispute resolution procedures and requirements in addition to the provisions of this section, so long as the contractual provisions do not conflict with or otherwise impair the timeframes and procedures set forth in this section.
(h) Nothing in this section shall impose liability upon a public entity that makes loans or grants available through a competitive application process, for the failure of an awardee to meet its contractual obligations.

16.5 VENUE

16.5.1 State of California - CONTRACTOR, and any Subcontractor, Supplier and any other person or organization performing any part of WORK, agree that each of them will waive jurisdiction and venue and shall submit to the jurisdiction of the courts of the State of California, regardless of residence or domicile, with respect to any actions or suits at law or in equity arising under or related to the bidding, award or performance of the WORK.

16.5.2 County Where OWNER’s Headquarters Located - CONTRACTOR, Subcontractor, Supplier or any other person or organization shall not commence any action, other than those in the State of California in the county where OWNER’s Headquarters are located, against OWNER and CONSTRUCTION MANAGER or any of their consultants, and/or any of their respective directors, officers, employees, representatives or agents, with regard to any matter whatsoever arising out of or relating to the validity, construction, interpretation or reinforcement of the Agreement.

ARTICLE 17 -- MISCELLANEOUS

17.1 GIVING NOTICE - Whenever any provision of the Contract Documents requires the giving of written notice, it will be deemed to have been validly given if delivered in person to the individual or to a member of the firm or to an officer of the corporation for whom it is intended, or if delivered at or sent by registered or certified mail, postage prepaid, to the last business address known to the giver of the notice.

17.2 CUMULATIVE REMEDIES - The duties and obligations imposed by these General Conditions and the rights and remedies available hereunder to the parties hereto, and, in particular but without limitation, the warranties, guarantees and obligations imposed upon CONTRACTOR by the General Conditions and all of the rights and remedies available to OWNER and

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CONSTRUCTION MANAGER thereunder are in addition to, and are not to be construed in any way as a limitation of, any rights and remedies available to any or all of them which are otherwise imposed or available by laws or regulations, by special warranty or guarantee or by other provisions of the Contract Documents, and the provisions of this paragraph will be as effective as if repeated specifically in the Contract Documents in connection with each particular duty, obligation, right and remedy to which they apply.

17.3 PROFESSIONAL FEES AND COURT COSTS INCLUDED - Whenever reference is made to claims, costs, losses and damages, it shall include in each case, but not be limited to, all fees and charges of engineers, architects and other professionals and all court or arbitration or other dispute resolution costs. Attorneys’ fees are specifically excluded and shall be the responsibility of each party.

17.4 RIGHT TO AUDIT

17.4.1 Owner’s Right - If CONTRACTOR submits a Claim or a time and material Change Order to OWNER for additional compensation, OWNER shall have the right, as a condition to considering the Claim, and as a basis for evaluation of the Claim, and until the Claim has been settled, to audit CONTRACTOR’s books to the extent they are relevant.

17.4.2 Right Includes - This right shall include the right to examine books, records, documents and other evidence and accounting procedures and practices, sufficient to discover and verify all direct and indirect costs of whatever nature claimed to have been incurred or anticipated to be incurred and for which the claim has been submitted.

17.4.3 Right To Inspect Plans - The right to audit shall include the right to inspect CONTRACTOR’s plans, or such parts thereof, as may be or have been engaged in the performance of the WORK.

17.4.4 CONTRACTOR further agrees that the right to audit encompasses all subcontracts and is binding upon Subcontractors. The rights to examine and inspect herein provided for shall be exercisable through such representatives as OWNER deems desirable during CONTRACTOR’s normal business hours at the office of CONTRACTOR.

17.4.5 Accounting Records - CONTRACTOR shall make available to OWNER for auditing, all relevant accounting records and documents, and other financial data, and upon request, shall submit true copies of requested records to OWNER.

17.5 ALL LEGAL PROVISIONS INCLUDED - All provisions of law required to be inserted in the Agreement or Contract Documents shall be and are inserted herein. If through mistake, neglect, oversight or otherwise, any such provision is not herein inserted or inserted in improper form, upon the application of either party, the Agreement or Contract Documents shall be changed by OWNER, at no increase in Contract Price or extension in Contract Time, so as to strictly comply with the law and without prejudice to the rights of either party hereunder.

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17.6 NO CONFLICT WITH LAWS OR REGULATIONS

17.6.1 The duties, obligations, criteria or procedure imposed by these General Conditions and the rights and remedies made available are in addition to, and are not to be construed in any way as a limitation of any rights and remedies available to any or all of them which are otherwise imposed or available by laws or regulations, except that in the event that a specific part or detailed requirement of a provision, criterion or procedure in these General Conditions and a specific part or detailed requirement of a provision, criterion or procedure imposed or available by laws or regulations are in conflict, the specific part or detailed requirement of such provision, criterion or procedure imposed or available by laws or regulations in conflict shall govern. All other specific parts or detailed requirements in the provisions, criteria or procedures of the applicable laws or regulations and these General Conditions not in conflict shall remain in full force and effect and be read with the controlling specific part or detailed requirement.

17.6.2 The provisions of paragraph 17.6 will be as effective as if repeated specifically in the Contract Documents in connection with each particular duty, obligation, right and remedy to which they apply.
- END OF GENERAL CONDITIONS –

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SUPPLEMENTARY GENERAL CONDITIONS

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SUPPLEMENTARY GENERAL CONDITIONS

GENERAL
These Supplementary General Conditions make additions, deletions or revisions to the General Conditions as indicated herein. All provisions which are not so added, deleted or revised remain in full force and effect. Terms used in these Supplementary General Conditions which are defined in the General Conditions have the meanings assigned to them in the General Conditions.

SGC-1 DEFINITIONS
Apparent Low Bidder - The Bidder whose Bid, having been publicly opened and read aloud, meets all the material requirements of the Bidding Documents, OWNER deems responsible in accordance with the OWNER’s municipal code, and whose Bid price is the lowest received.

SGC-2.4.1 TIME OF COMPLETION - The WORK must be completed within ninety (90) Working Days after the commencement date stated in the Notice to Proceed.

SGC-5.1 PERFORMANCE AND OTHER BOND AMOUNTS
CONTRACTOR shall furnish a satisfactory Performance Bond in the amount of one hundred (100) percent of the Contract Price and a satisfactory Payment Bond in the amount of one hundred (100) percent of the Contract Price.

SGC-5.2.2 CONTRACTOR shall provide the types and amounts of insurance as set out in the Agreement:

SGC-5.2.3 CONTRACTOR shall provide the indemnification set out in the Agreement.

SGC-6.18 SAFETY
SGC-6.18.3 CONTRACTOR shall provide a qualified on-site health and Safety representative, accepted by CONSTRUCTION MANAGER, with the authority to enforce all of the Safety requirements of CONTRACTOR’s health and Safety program, including implementation of CONTRACTOR’s injury and illness prevention program. CONSTRUCTION MANAGER will make a risk-based decision as to the qualification level of CONTRACTOR’s Safety representative.

During periods of active construction (i.e., excluding weekends, weather delays or other periods of work inactivity), CONTRACTOR must have a designated representative on the construction worksite who is knowledgeable of the Project’s hazards and has full authority to act on behalf of CONTRACTOR. CONTRACTOR’s designated representative must make frequent and regular inspections of the construction worksite to identify and correct any instances of noncompliance with the Project health and Safety requirements.

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SGC-6.5 SUBCONTRACT LIMITATIONS
In addition to the provisions of Paragraph 6.5 of the General Conditions, CONTRACTOR shall perform not less than twenty (20) percent of the WORK with its own forces (i.e., without subcontracting). The twenty (20) percent requirement shall be understood to refer to the WORK, the value of which totals not less than twenty (20) percent of the Contract Price.

SGC-11.3.4 EQUIPMENT RENTAL RATES
CONTRACTOR will be paid for the use of equipment at the rental rate listed for such equipment specified in the current edition of the following reference publication:

A. “Rental Rate Blue Book” as published by Dataquest (a company of the Dunn and Bradstreet Corporation), 1290 Ridder Park Drive, San Jose, CA 95131, telephone number (408) 437-8000 or outside of California (800) 669-3282
SGC-12.5 INCLEMENT WEATHER DELAYS
CONTRACTOR’s construction schedule shall be based upon the inclusion of five (5) Days of inclement weather delays.

An inclement weather delay is defined as a delay caused by inclement weather which prevents CONTRACTOR from working on the controlling item in CONTRACTOR’s construction schedule. Should CONTRACTOR experience inclement weather delays over the course of contract duration in excess of the number of Days outlined above, CONTRACTOR shall be granted a time extension in accordance with the provisions outlined in Article 12 of the General Conditions. The time extension shall be based on the number of inclement weather Days in excess of the number of Days outlined above.

SGC-14.13 LIQUIDATED DAMAGES
SGC-14.13.3 OWNER and CONTRACTOR recognize that time is of the essence of this Agreement and that OWNER will suffer financial loss if the WORK is not completed within the time specified in Article 2 herein, plus any extensions thereof allowed in accordance with Article 12 of the General Conditions. They also recognize the delays, expense and difficulties involved in proving in a legal proceeding the actual loss suffered by OWNER if the WORK is not completed on time. Accordingly, instead of requiring any such proof, OWNER and CONTRACTOR agree that as liquidated damages for delay (but not as a penalty) CONTRACTOR shall pay one thousand and five hundred dollars ($1,500) for every working Day that expires in excess of the time specified for final completion of the WORK.

END OF SUPPLEMENTARY GENERAL CONDITIONS

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SPECIFICATIONS

1.01 STANDARD SPECIFICATIONS
Unless indicated otherwise, the work embraced herein shall be done in accordance with the appropriate provisions of construction details as shown in the specifications entitled “GREEN BOOK Standard Specifications for Public Works Construction,” the latest edition, insofar as the same may apply, which specifications are hereinafter referred to as the Standard Specifications and in accordance with the following provisions:

Class II base and Conventional Asphalt shall comply with Caltrans Standard Specifications, latest edition.

In case of conflict between the Standard Specifications and these General Conditions and Specifications, the General Conditions and Specifications shall take precedence over and be used in lieu of such conflicting portions.

1.02 SCOPE OF WORK
The work shall include grinding of existing asphalt concrete pavement, installation of conventionalasphalt concrete leveling course, installation of HMA, installation of ARAM, slurry seal, crack cleaning and filling, traffic striping, utility adjustments, curb/gutter, ADA ramps and sidewalks replacement, minor aggregate base, monument preservation, material testing, erosion control and traffic control as described in Chapter 5 of the Caltrans Traffic Manual and the latest edition of Manual of Uniform Traffic Control Devices (“California MUTCDCD@”).

END OF SPECIFICATIONS

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SPECIAL PROVISIONS

1. ORDER OF WORK
Prior to commencement of any work on the project, a preconstruction conference will be held for the purpose of review and discussion of progress schedule and construction procedures. At the discretion of the Director of Public Works, periodic meetings involving project personnel (the Contractor, utility and others) will be held for the purpose of coordinating project activities.

2. STARTING AND COMPLETION OF WORK
The work called for in these contract documents shall commence within (10) calendar days after that date set out in the Notice to Proceed issued by the City, and shall be diligently pursued to completion within Ninety (90) calendar days of said date.

3. FAILURE TO COMPLETE ON TIME AND LIQUIDATED DAMAGES
(See General Conditions 1-19) It is agreed by the parties to the Contract that in case of all work called for under the Contract is not completed before or upon the expiration of the time limits set forth in these Special Provisions, damages will be sustained by the City and that it will be impracticable to determine the actual damage by which the City will sustain in the event of and by reason of such delay and it is therefore agreed that the Contractor will pay to the City the sum of one thousand five hundred dollars ($1,500) per working day for each and every days delay beyond the time prescribed to complete the work.

4. MAINTAINING TRAFFIC
The Contractor shall maintain two-way traffic in the work area in accordance with the “Manual of Traffic Controls for Construction and Maintenance Work Zones” and the California MUTCD, latest Edition or as modified, available through the State of California, Department of Transportation, 1900 Royal Oaks Drive, Sacramento, California 95815.

Personal vehicles of the Contractor’s employees shall not be parked on the traveled way at any time, including any section closed to public traffic.

The Contractor shall make every effort to keep driveways open during working hours. After working hours, all driveways shall be accessible and safe. The payment for item shall be included in the bid price for the applicable item of work for which traffic control is performed.

The Contractor shall investigate and determine the extent of traffic control for the various areas of work.

It shall be the Contractor’s responsibility to provide traffic control plans and/or typical MUTCD applications which can be implemented for the various areas of work for City approval. As such, it shall be the Contractor’s responsibility to implement the approved traffic control plans. The contractor shall submit traffic warning signs, barricades, traffic control devices and all other items to the City Engineer or his representatives for approval during the submittal process prior to implementing traffic control at the project sites. Contractor shall purchase or rent and maintain traffic warning signs, barricades, flagmen, and other traffic control devices as required and to maintain traffic flow as required by the City of El

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Centro and State of California Transportation Department. All cost associated with maintaining traffic shall be included in the respective Traffic Control Lump Sum (LS) Item. No additional compensation or time extension will be provided for traffic control.

5. NOTICE AND POSTING REQUIREMENTS
The Contractor shall post and remove temporary “No Parking” signs as needed. Signs shall be in place for at least two (2) business days in advance of commencing of work. Signs may be attached to existing poles, or any available support that may exist in the public right-of-way or the Contractor may furnish sign supports as may be necessary.

Multiple notices shall be delivered and hung on door handles of each residence and to each business affected by the construction. The format and content of the notices shall be submitted to the City for approval at least two (2) weeks prior to use. Notices will be required as follows:
1) A general notice in all cases will be required two (2) weeks in advance of work, describing the sequence of activities that will affect parking and access to properties, to be delivered two (2) weeks prior to construction. This notice will generally addressing parking and access for street resurfacing with further details to follow on subsequent notices, except detailed information will be required in this first notice to explain the leveling course portion of the work. 2) A notice prior to ARAM, with specifics about parking and access, to be delivered two (2) business days prior to construction.
3) A notice prior to Slurry, with specifics about parking and access to be delivered two (2) business days prior to construction.

Notice numbers 1, 2 and 3 shall be delivered for System I and System II.

6. CONSTRUCTION AREA SIGNS
The Contractor shall furnish, install, maintain and remove all construction area signs in conformance with the plans and Sections 12-3.06 of the Standard Specifications.

7. REPAIR EXISTING ROADBED
Where directed by the Director of Public Works, broken or failed or other unsatisfactory portions of the existing roadbed shall be removed and disposed of and the resulting excavation shall be filled with asphalt concrete pavement in conformance with specifications and to be compensated by applicable bid item.

8. REMOVE PAVEMENT MARKINGS
Existing pavement markers, when no longer required for traffic lane delineation as directed by the Director of Public Works, shall be removed and disposed of.

Full compensation for removing and disposing of pavement markers shall be considered as included in the contract price for the applicable bid item for roadway surfacing and no separate payment will be made therefore.

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9. ASPHALT CONCRETE LEVELING COURSE
The work shall consist of installing asphalt concrete conforming to specifications for Type A HMA onehalf (½)inch Maximum, Medium, PG70-10.

9.01 Placing
All holes and cracks exceeding two (2) inches deep by five (5) inches wide by seven (7) inches long in all three (3) dimensions shall be filled with asphalt concrete approved for skin patch compacted level with the top of the existing pavement. All cracks and joints one-quarter (¼) inch or greater in width shall be blown thoroughly clear with high pressure air or power-broomed clean to a depth of three-quarters (¾) inch min. prior to final sweeping just ahead of leveling course.

Tack coat on all feathered areas and cold milled areas shall be SS-1h applied at .48 liters per square meter (.12 gal/sy).

The Contractor shall place asphalt concrete with a self-propelled asphalt paving machine. The Contractor shall provide a twenty (20) foot long automatic screed control on both sides of the paving machine for all paving with paving machine, as directed by the Engineer.

Each paving machine used will require a paving foreman for each machine along with a full set of rollers as specified and two (2) rakers and one (1) shoveler laborer as a minimum.

Asphalt concrete shall be placed at a minimum thickness of three-quarters (¾) inch. Non-uniform surface voids or scraped rock surfaces on the surface of the mat behind the screed will be considered indication of aggregate particle conflicts between screed and existing grade, resulting in cessation of paving until adjustment of thickness to provide for a smooth surface is provided to the satisfaction of the Engineer.

Rolling along a joint shall be such that the widest part of the roller is on the hot side of the joint.

Rubber tire rollers shall be used on any leveling course.

Join lines between successive runs shall be within one hundred fifty (150) mm (six (6) inches) of lane lines or a minimum of three and six-tenths (3.6) m (twelve (12) feet) outside of the outer most lane line.

9.02 Compaction
The Contractor shall use the following equipment as a minimum:

One (1) pass with a steel-wheeled two (2) axle tandem vibratory breakdown roller weighing between ten (10) tons and twelve (12) tons with wheels whose diameter shall measure a minimum of forty (40) inches.

Two (2) passes with a pneumatic-tired roller weighing not less than twelve (12) tons.

An eight (8) to ten (10) ton roller shall perform finish rolling.

9.03 Payment

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Payment of this item complete shall be by the square yard for leveling course, and shall be considered to include compensation for all holes and crack preparation as specified in this Section 9 of Special Provisions.

10. ASPHALT CONCRETE REPAIRS

10.01 Remove and replace Asphalt Pavement
The work under this item shall include removal and replacement of existing asphalt concrete pavement.

Repair locations will be as marked by the Engineer on the existing pavement. The perimeter of all repairs shall be sawcut minimum three (3) inches deep. Replacement shall match existing asphalt thickness plus 25%.

Asphalt replacement shall be performed the same day as removals.

Asphalt concrete used for remove and replace asphalt pavement shall be HMA Type A three-quarters (¾) inches Maximum, Coarse, PG70-10.

Tack coat for vertical joints on repairs in AC shall be uniformly applied as two coats SS-1h applied uniformly at .64 liter per square meter (.20 gal/SY) each coat.

Compensation for Remove and Replace Asphalt Pavement will be made at the unit price per SF per bid item “Digouts”. The price per SF shall include sawcut, excavation and removal, subgrade preparation including compaction, tack coat, and placement and compaction of HMA and all incidentals.

10.02 Skin Patch
Areas marked with an “S” shall receive a layer of a fine AC mix on existing pavement. The AC mix design shall be submitted to the Engineer for review and approval at least five (5) working days prior to use on the project. Pavement shall be allowed to dry prior to placement of any material and a torch shall be used to evaporate and thoroughly dry out any residual dampness prior to application of tack coat. Tack coat shall be applied in all areas to be paved, but no more than ten (10) minutes ahead of paving in wet areas. AC skin patch material shall be placed in the depressed area slightly below flush with surrounding pavement. Thorough compaction shall be provided by a walk behind roller or other small roller.

Tack coat on all feathered areas around the perimeter of skin patches shall be .13 gal/SY. It is considered extremely important that material used for feathers be rolled above minimum temperature. The Contractor shall provide a heated compartment to maintain temperature of material or bring enough material to maintain temperature of the mass of AC until placement is complete.

The unit price bid per square foot for Skin Patch will be considered full compensation for all preparation, tack coat, materials, placement and compaction of skin patch, including all incidentals.

10.03 Crack Filling/Sealing
This specification applies to areas on plan receiving: a) slurry seal

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Crack sealing shall be limited to linear cracks, thermal cracks and block cracks. In no case shall alligator cracks be crack filled.

An alligator crack shall be considered to be a crack not meeting the definition of block crack and that that is located in the traffic wheel path.

A block crack shall be considered to be a crack on the perimeter of an otherwise uncracked asphalt pavement area when the largest dimension across said area four (4) feet or more. Cracks not fully interconnected in forming a complete perimeter shall be considered block cracks, unless the maximum dimension across the partial perimeter between cracks can be measured as less than four (4) feet. Such pavement area is defined by the cracks forming its perimeter. 1) The Contractor shall spray all weeds in cracks with Monsanto brand Roundup (or approved equal), a minimum of two (2) weeks prior to paving. All weeds shall be resprayed if rain occurs within forty-eight (48) hours after application;
2) All cracks and holes with weeds shall be routed clear to a depth of one (1) inch; 3) All holes and cracks exceeding one and one-half (1½) inches wide shall be filled with asphalt concrete approved for skin patch compacted level with the top of the existing pavement; 4) All cracks and joints one-quarter (¼) inch or greater in width shall be blown thoroughly clear with high pressure air or power broomed clean to a depth of three-quarters (¾) inch minimum immediately ahead of the crack filling operation; and
5) All joints and singular cracks between one-quarter (¼) inch (one-half (½) at ARAM system 1) and one and one-half (1½) inches in width shall be filled with Crafco Polyflex III or approved equal.

Filler shall be within one-eighth (1/8) inch below and flush with existing pavement surface and shall be thoroughly squeegeed, as necessary, to attain this result.

Any crackfiller in excess of that specified at any point on the pavement after crackfiller has cooled shall be heated with a torch and thoroughly squeegeed to meet specifications. Crackfiller that becomes unbonded shall be removed, and the lack of bonding shall be considered evidence that the crack was not thoroughly blown clean, thereby requiring recleaning, refilling and squeegeeing.

Crackfiller material shall be allowed to cure for thirty (30) days prior to being covered by slurry or Fog Seal applications.

Payment for crack cleaning, crack filling, herbicide application and related street cleaning shall be made at the lump sum price for Crack Filling, and shall include all materials, equipment and labor for such work, and no additional compensation will be allowed.

11. SLURRY SEAL
Construction and materials for Emulsion-Aggregate Slurry shall conform to Subsection 203-5 and 302-4 of the GREENBOOK, except as modified herein.

SECTION 203-5 – RUBBERIZED EMULSION-AGGREGATE SLURRY

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203-5.1 General
Emulsion-aggregate slurry shall be polymer modified.
203-5.2 Materials
Emulsion - aggregate slurry shall be Type II, unless otherwise indicated on the plans, bid schedule or in these specifications. The amount and type of accelerator or retardant used shall be approved by the Engineer, and shall provide for curing sufficiently to support traffic within two (2) hours.

Emulsified asphalt shall be CQS-1h.

Prior to the time of delivery of each shipment of asphalt emulsion, the Contractor shall deliver to the City certified copies of the test report for that emulsion. The test report shall indicate the name of the vendor, type and grade of asphalt emulsion, date and point of proposed delivery, quantity, purchase order number and results of the specified tests. The test report shall be signed by an authorized representative of the vendor, shall certify that the product delivered conforms to the standard specifications and is compatible with the proposed aggregate. Testing shall be accomplished by an accredited materials testing laboratory approved by the Engineer.

Prior to a change of emulsion, the Contractor shall thoroughly clean all emulsion tanks and mixing units to prevent any chemical reaction between the two (2) emulsions.

The Contractor shall schedule and coordinate the delivery of aggregate to the stockpile(s) such that (1) deliveries originate at the plant and arrive at the stockpile site within normal work hours on the same calendar day, (2) delivery site and project name are explicitly stated on each delivery ticket, (3) successive deliveries on the same calendar day show the cumulative total for that day, (4) copies of all delivery tickets are delivered to the Engineer before the end of the working day, whereas any delivery tickets not so delivered may be rejected by the Engineer. Any deviation from this process must have the prior approval of the Engineer. 203-5.2.1 Polymer Modified Emulsion. Polymer modified emulsion-aggregate slurry shall conform to Table 203-5.2.1(A).

Asphalt emulsions shall be composed of a paving asphalt base uniformly emulsified with water and an emulsifying or stabilizing agent. Polymer modified asphalt emulsions shall also contain a polymer.

The asphalt emulsion shall be homogeneous. Within thirty (30) days after delivery and provided separation has not been caused by freezing, the asphalt emulsion shall be homogeneous after thorough mixing. The polymer used in the manufacture of polymer modified asphaltic emulsion shall be, at the option of the Contractor, either neoprene, ethylene vinyl acetate or a blend of butadiene and styrene.

The emulsion supplier shall certify that the asphalt residue contains at least two and one-half (2½) percent polymer (dry weight) and that the polymer has either been added as a solid

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polymer to the base asphalt, or has been added in the form of a latex at the time of emulsion manufacture.

Polymer modified emulsified asphalt shall be kept in a suspended state by an agitating mixer operated every three (3) days.

TABLE 203-5.2.1(A)
Requirements for Polymer Modified Cationic Quick Setting Emulsions (PMCQS1h)
Properties Min. Max.

Tests on Emulsions
Viscosity SSF, @ 77F
Sieve Test, %
Storage Stability, 1 day, %
Residue by Evaporation
Particle Charge

15.0 57.0
Positive

90.0 0.3

1.0 Tests on Residue from Evaporation Test
Penetration, 77 F
Ductility, 77 F, cm
Absolute Viscosity @ 140 F, poise
Solubility in Trichloroethylene

40.0 40.0
2,250.0

97.0 90.0
Quantitative Test for Polymer Content
Either;
Torsional Recovery, %
or
Polymer Content in Residue, wt %

18.0 2.5 3.0
203-5.6 Test Reports and Certification. A certification of compliance shall be provided at least forty-eight (48) hours prior to delivery of emulsion to the project.

Testing shall be accomplished by an accredited materials testing laboratory approved by the Engineer. Tests performed shall provide values corresponding to all parameters set forth in the table of requirements for the materials specified.
302-4 SLURRY SEAL SURFACING
302-4.1 General. After application, slurry shall be rubber tire rolled in all areas. The work to be done consists of furnishing all plant, labor, materials, tools, equipment and services necessary for the application of emulsion-aggregate slurry upon designated ARAM street surface areas.
302-4.2 Mixing
302-4.2.1 General. Transit mix trucks shall not be used.

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The Contractor shall arrange with the City for appropriate areas for stockpiling and batching. The stockpile areas shall be thoroughly cleaned, removing all excess material and all material contaminated by spilled oil and left with a neat, orderly appearance upon completion of slurry operations in that area. Stockpiles shall be covered as necessary to prevent contamination by all materials including excessive moisture. No equipment or materials shall be stored in the public right-of-way.

The Contractor shall be responsible for all stockpiling and batching materials and equipment.

All trucks which the Contractor proposes to use that exceed the legal load limit will be required to have overweight permits from the City.

Loaders used to load spreader trucks shall be equipped with functioning weighing devices with weight read-outs. The weight of each loader bucket added to a spreader truck shall be logged in writing by Contractor’s personnel after each bucket load.

Prior to the beginning of slurry operations, the Contractor shall furnish, at no cost to the City, a current licensed weigh master’s certificate indicating the net weight capacity of the aggregate bin.

The Contractor shall supply the Engineer with licensed weigh master’s certificates of weights for all aggregate delivered to the job during the course of each day.

Aggregate so certified as being delivered for use in the Contract shall be used only in the slurry mixture for the Contract. The Contractor shall also present weigh master’s certificates for the amount of such aggregate remaining unused at the completion of the contract at no cost to the City. Payment shall be determined by deducting the amount of unused aggregate from the total amount of aggregate delivered, all as shown on the licensed weigh master’s certificates. The certificates shall be presented to the Engineer on the same day the aggregate is delivered.

Water (excluding that water in the emulsified asphalt) shall be added at a rate of from five (5) to ten (10) percent by weight of dry aggregate to ensure proper dispersion of the emulsified asphalt and proper workability, while (1) avoiding excess water which would allow separation and settlement of the aggregate, (2) avoiding insufficient water which would result in balling and coagulation in the mixer, and (3) permitting uncontrolled vehicular traffic as specified herein. The exact rate will be determined by the Contractor based upon field conditions subject to approval of the Engineer.
302-4.2.2 Continuous-Flow Mixers. The mixing unit shall be equipped with a fines feeder for addition of accelerator.

The spreader box shall be equipped with a suitable drag to erase ridges. A minimum two (2) foot length of burlap material shall be attached to the entire width of the drag. The spreader box shall be equipped with a steering device.

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The slurry spreader box shall be maintained in a good state of repair at all times.

The spreader box main strike off squeegee (rubber) shall be new at the beginning of the Contract and shall be maintained in a good state of repair throughout the Contract.

Equipment shall be available for inspection before the beginning of the Contract and again before work is to be accomplished.
302-4.3 Application
302-4.3.1 General. The first paragraph of Subsection 302-4.3.1 of the Standard Specifications is hereby deleted and replaced with the following:

The work shall consist of preparation, mixing asphaltic emulsion, aggregate, accelerator and water, and spreading the mixture on the pavement where shown on the plans. Type II slurry shall be applied at a rate yielding a minimum twelve hundred (1,200) square feet per extra long ton.

Actual spread rates shall be approved by the Engineer.
302-4.3.1.1 Preparation.

Slurry shall not be applied over any manhole, valve, survey monument or miscellaneous frames and covers. Any material used to protect such devices shall be removed and disposed of lawfully by the Contractor. 302-4.3.2 Spreading. The first sentence of Subsection 302-4.3.2 is hereby deleted and replaced with the following:

Slurry seal shall be placed only when the ambient temperature is above fifty (50) degrees and rising. No slurry will be placed during inclement weather or the threat of. The Contractor will bear the responsibility of that may arise from noncancellation.

Each slurry crew shall be composed of a coordinator at the project site at all times, a competent quick-set mixing worker, a competent driver, and sufficient laborers for any handwork and cleanup.

Prior to commencement of work, the Contractor shall perform test sections for review and approval by the Engineer. The area of the test sections shall be at least five thousand (5,000) square feet. The section locations shall be in the area of the work, to be specified prior to construction. In no case will the Contractor begin operations until the test sections have adequately cured and he has received written approval by the Engineer. The approved mix design and test section shall be considered the standard for the operation.

No slurry seal shall be placed on a wet street or crossing without the Engineer’s consent.

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Intersections and commercial driveways shall be completed in two (2) parts to allow ingress and egress to traffic. Sand may be spread over the fresh slurry only with the permission of the Engineer.

All slurried streets shall be fully swept five (5) to eight (8) days after slurry is complete, with residual material removed to a legal disposal site.

The cost of cleanup and/or damage caused by vehicles tracking through the slurry seal will be born solely by the Contractor.
302-4.3.2.1 Rubber Tire Rolling. Rolling shall be performed with two (2) complete coverages by a twelve (12) ton nine (9) wheel rubber tired roller with a tire pressure of fifty (50) psi. Rolling shall be performed after slurry and as soon as it sets up enough to support the roller and not pick up on the tires.

Areas of shade on the pavement that set up more than ten (10) minutes later than other areas shall be rolled separately, but as soon as they set up sufficiently to meet the requirements herein. Insufficient rubber-tire rollers to meet these requirements shall be cause for termination of slurry operations until rolling can keep pace with slurry spread. 302-4.4 Public Convenience and Traffic Control. The spreading schedule shall list the streets in order of proposed application and denote which streets are to be completed each day.

Traffic control with ample barricades, flaggers, standard regulatory and warning signs (no parking signs, etc.) shall be provided to protect the uncured slurry surface from all types of traffic. Any damage to the uncured slurry is the responsibility of the Contractor. Traffic control plan shall be submitted to and approved by the City’s Director of Public Works prior to commencing work. The Contractor’s work will be done on successive adjacent streets during the same day of the operation. Adequate means shall be provided to protect the slurry seal from damage by traffic for a minimum of four (4) hours of application or until such time that the mixture has cured sufficiently so that the slurry seal will not adhere to and be picked up by tires of vehicles.

Temporary “No Parking” signs shall be posted at least two (2) business days in advance of the work. The signs shall be placed no more than one hundred (100) feet apart on each side of the street and at shorter intervals if conditions warrant. The Contractor shall provide the signs and will be responsible for adding the dates and hours of closure to the signs, removal of the signs, and furnishing and placing of barricades, if necessary, for posting of the signs. All signs shall be removed within forty-eight (48) hours after the effective date.

The Contractor shall provide barricades and other traffic control devices as necessary to eliminate traffic on areas of fresh slurry that might sustain damage from such traffic. Any tracking of slurry seal on private property will be the responsibility of the Contractor to correct. The Contractor shall sweep the streets for five (5) consecutive days after

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application of the slurry.

Slurry seal shall not be spread on the trash pickup day of each respective street.

Temporary striping devices shall be provided on all lane lines covered by slurry. 302-4.5 Measurement and Payment. The second paragraph of Subsection 302-4.5 of the Standard Specifications is hereby deleted and replaced with the following:

The Contract unit price per square yard shall be considered to include full compensation for furnishing emulsion, polymer as specified, accelerator or retardant and water, and all preparation, traffic control, rubber tire rolling where specified and other incidentals described in the work and no additional compensation will be provide therefor.

12. EARTHWORK
SECTION 300 of the Green Book– EARTHWORK IS AMENDED AS FOLLOWS:
300-1 Clearing and Grubbing
300-1.1 General
ADD THE FOLLOWING PARAGRAPHS:

Along with all items indicated on the Plans to be removed, clearing and grubbing shall also include, but not be limited to, the following items:

1. Clearing for and providing temporary graded driveways and continuing maintenance thereof to provide continuous access to all residences within the project area as directed by the Engineer.

2. Sawcutting of portland cement concrete and asphalt concrete to neat straight lines at joints and right of way limits.

3. Protection of existing and relocated utility lines and structures prior to and during construction of proposed improvements.

4. Removal and disposal of interfering portions of abandoned utility lines and structures.

5. Removal, relocation, adjusting or salvaging of all facilities so indicated on the Plans which are not designated as separate bid items or which are not included in other bid items.

6. Removal and disposal of any additional items not specifically mentioned which may be found within the work limits.

7. Maintenance of project appearance.

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8. Control of water and dewatering during construction.

9. Hauling and disposal of deleterious materials resulting from clearing and grubbing operations at a site obtained by the Contractor and approved by the Engineer.

10. Cleanup of project area upon completion of work.

11. Removal existing signs as noted on the plans and as directed by the Engineer

12. Self-propelled drop hammers will not be allowed for removals.

The Contractor shall protect all existing structures or facilities which are adjacent to, or fall within, the limits of work to be done under the Contract in accordance with Sections 7-9 and 300-1 of the Standard Specifications. This item shall also include those structures and facilities which the Plans show or these Specifications indicate to be protected. Any structure or facility to be protected which is damaged as a result of the Contractor shall be repaired or replaced at his cost, to the satisfaction of the Engineer.

All materials removed shall be disposed of outside of the right of way at a legal dump site approved by the Engineer. Burning shall not be permitted under any circumstance. No accumulation of flammable material shall remain on or adjacent to the right of way. The roadway and adjacent areas shall be left with a neat and finished appearance. 300-1.4 Payment
DELETE THE FIRST PARAGRAPH AND SUBSTITUTE THE FOLLOWING:

The lump sum set forth in the Contract Documents for clearing and grubbing shall include full compensation for furnishing all labor, materials, tools, equipment and incidentals, and for doing all the work involved in clearing and grubbing as shown in the Plans and as described in the Contract Documents, and as directed by the Engineer, including preservation of property, relocation of various facilities, removal and disposal of material, salvage of material, cleanup and repairs. Payment shall be computed in accordance with the percentage of completion of the major items of work. 300-2 Unclassified Excavation
300-2.1 General
REVISE THE SUBSECTION TO READ:

Unclassified excavation shall consist of all excavation, including the removal of existing roadway asphalt pavement and base materials in areas shown on the Plans or as directed by the Engineer.

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300-2.9 Payment
ADD THE FOLLOWING PARAGRAPH:

Quantities of unclassified excavation used for payment, other than unsuitable material and additional work ordered or deleted by the Engineer, shall be the quantity indicated in the awarded Contract and Plans and no further compensation will be awarded. 300-4 Unclassified Fill
300-4.1 General
ADD THE FOLLOWING PARAGRAPH:

All remaining excess materials not used on the project for fills, embankments and roadbed purposes shall be disposed of by the Contractor according to Subsection 300-2.6 of the Standard Specifications.
300-4.9 Measurement and Payment
ADD THE FOLLOWING PARAGRAPH:

Quantities of Unclassified Fill used for payment, other than additional work ordered or deleted by the Engineer, shall be the quantity indicated in the Contract.

13. ASPHALT-RUBBER HOT MIX – OPEN GRADED (ARHM-OG) and GAP GRADED (ARHM-GG)
ARHM Material shall conform to 203-11 of the GREENBOOK as modified herein.

ARHM Construction shall conform to 302-9 of the GREENBOOOK as modified herein. 203-11 ASPHALT-RUBBER HOT MIX (ARHM) WET PROCESS.
203-11.2 Materials.
203-11.2.3 Crumb Rubber Modifier (CRM).

The third and the last sentence of the first paragraph of Subsection 203-11.2.3 are hereby deleted and replaced with the following:

The high natural rubber shall be a single source material and not a blend of more than one (1) source. The high natural CRM shall not be tire rubber. A minimum two (2) ounce unground and ungranulated sample of the base stock high natural CRM shall be provided, along with a minimum four (4) ounce ground or granulated sample, the same as will be used for the work. The Contractor shall pay for any failed chemical analysis tests. The test for natural rubber content in the material shall be ASTM D297, paragraph 53.

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The fifth paragraph of Subsection 203-11.2.3 is hereby deleted and replaced with the following:

The percentage of high natural CRM shall be equal to one thousand (1,000) divided by the percentage of natural rubber in the high natural CRM (using whole number percentages), e.g., one thousand divided by forty (1000/40) percent equals twentyfive (25) percent. The remainder of CRM shall be scrap tires.

The maximum value for Natural Rubber Content in Table 203-11.2.3(B) is hereby deleted.

The sixth (last) paragraph of Subsection 203-11.2.3 is hereby deleted. 203-11.2.4 Aggregate. The text of Subsection 203-11.2.4 is hereby deleted and replaced with the following:

The aggregate for ARHM shall conform to the “quality requirements” for asphalt concrete Type A as specified in Caltrans Standard Specifications, except for the following:

Maximum LA Rattler value at five hundred (500) revolutions shall be thirty-five (35).

Eighty-five (85) percent of coarse aggregate shapes shall be “proportioned particles,” a proportioned particle being defined as a particle having a minimum dimension greater than one-half (½) the maximum dimension as measured with a caliper. The percentage of proportioned particles shall be tested by California Test 205 with the words “proportioned particles” substituted for “crushed particles.” California Test 205, Section D, definition of a crushed particle hereby revised as follows: “A particle having 2 or more fresh mechanically fractured faces shall be considered a crushed particle.”
203-11.3 Composition and Grading.

All provisions of Subsection 203-11.3 shall apply to both Asphalt-Rubber Hot Mix Type GG (ARHM-GG) and Asphalt-Rubber Hot Mix Type OG (ARHM-OG), unless otherwise noted.

The following is hereby added to Subsection 203-6.4.1:

Acceptance as used in this subsection shall mean acceptance of material in production. Air voids will be used for mix design evaluation and for evaluation of material during production for conformance with mix design parameters. Variations of air void values exceeding those specified in these Special Provisions will be cause to terminate production in conformance with specifications.

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Aggregate for testing mix designs shall be sampled from material that has passed the plant drum drier and shall include any mineral filler intended to be added during production of ARHM. The Engineer shall be provided with duplicate samples of aggregate and binder used for testing the mix design. Upon request, the Contractor shall supply to the Engineer samples of asphalt rubber binder and aggregate for testing. All samples used in testing shall be from the same source and composed of the same material intended for use in the work.

Any change in source of aggregate supply requires two (2) weeks advance notice in writing to the Engineer, and submittals and testing in conformance with specifications for a new mix design. No single bin shall receive aggregate from more than one (1) source. The Contractor shall provide a copy of aggregate delivery tickets for aggregate delivered for use on the project.

The aggregate for Asphalt-Rubber Hot Mix Type OG (ARHM-OG) shall conform to following gradations, which shall be considered included as an additional column in Table 203-11.3(A):

Sieve Size Percent Passing
¾” 100
½” 95-100
3/8” 77-91
No. 4 25-40
No. 8 7-17
No. 16 0-11
No. 200 0-3
No mineral filler or material from sand or rock dust bins shall be included in the open graded mix.

The amount of asphalt-rubber binder to be mixed with the aggregate for Asphalt-rubber Hot Mix Type OG shall be determined by the Contractor using the samples of aggregates furnished by the Contractor in conformance with the provisions in Section 39-3.03, “Proportioning,” of the Standard Specifications. The Engineer will determine the exact amount of asphalt-rubber binder to be mixed with the aggregate in conformance with the provisions in California Test 368 with the following exceptions. The aggregate shall be mixed with PG70-10 paving asphalt and the optimum bitumen content shall be determined in conformance with the test procedure. The optimum binder content for Asphalt-rubber Hot Mix Type OG shall then be determined using the following formula:

A. OBC2 = (OBC1) x 1.20
B. OBC1 = Optimum bitumen content using PG70-10 paving asphalt C. OBC2 = Optimum bitumen content using asphalt-rubber binder The asphalt-rubber binder content of the Asphalt-rubber Hot Mix Type OG will be determined by California Test Method 382.

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A mix design for ARHM-OG shall be provided with test documentation showing that the binder and aggregate to be used has conforms fully to specifications.

ARHM-GG shall be Class GG-C.

Values in Table 203-11.3 are hereby modified and supplemented as follows:

Arterial Roadways Local Roadways
Sieve Size Percent Passing Percent Passing
3/4” 99 - 100 100
1/2” 91 - 99 94 - 100
3/8” 78 – 92 78 – 92
No. 4 32 – 43 32 – 43
No. 8 15 – 28 17 – 30
No. 30 5 – 15 0 – 10
No. 200 1 – 5 1 – 5
Air Voids 3.5%. 3.2%.

VMA** 19 Min. 19 Min.
**VMA shall be calculated by method described in Asphalt Institute Mix Design Methods for Asphalt Concrete (MS-2).

Streets shall be considered local unless speed limits exceed thirty-four (34) miles per hour and traffic signals exist at one (1) or more intersections on the route.

A mix design for ARHM-GG shall be provided with test documentation showing that the aggregate to be used has the minimum specified VMA, and has the specified air voids when mixed with the optimum binder content determined by California Test Method 367 as amended in Subsection 203-11.3.1 herein.

For all mixes, the gradation ranges shown in Table 203-11.3(A) shall be considered the Contract Compliance Range. The Operating Range for the one-half (½) inch sieve shall be the full contract compliance range. The Operating Range for all other sieves, except the No. 200 sieve, shall be two (2) percentage points inside both limits of the Contract Compliance Range. If gradation-testing results do not meet the Operating Range requirements but meet the Contract Compliance Range, placement of ARHM may be continued for the remainder of the day. However, another day of work shall not be started until tests, or other information, indicate to the satisfaction of the Engineer that the next material to be used in the work will comply with the requirements specified for Operating Range.

Except for the No. 200 sieve, it is the intent of the Specifications that the target percentage be the central value in the Contract Compliance Range.

The asterisk noted under Table 203-11.3 is hereby deleted and replaced with the following:

Once the percent asphalt-rubber binder is determined by the mix design, the tolerance shall be +/- one-half percent (.5%) as determined by California Test

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Method 382, and this tolerance shall be considered to include all sampling and testing tolerances. Variations of binder content on this basis at or exceeding +/- one-half percent (.5%) from the mix design will be cause to terminate paving operations until changes to provide specified tolerances are verified and approved by the Engineer.

Variations of percent air voids in plant produced mixtures below the minimum specified in Table 203-11.3(A) will be cause to terminate paving operations until changes to conform to the specified percent air voids are demonstrated and approved by the Engineer.

Once the air voids are determined by the mix design, the tolerance shall be +/- nine-tenths of a percent (.9%) as determined by California Test 309, and this tolerance shall be considered to include all sampling and testing tolerances. Air voids not meeting the specified tolerance will be cause to terminate paving operations until changes to provide specified tolerance are verified and approved by the Engineer.

California Test Method 367 as modified in Subsection 203-11.3.1 shall be used to determine the optimum binder content for gap graded mixes. Test results for all tests to verify conformance with these specifications shall be submitted to the Engineer for determination of approved percentage of binder in the mix. 203-11.3.1 Amended California Test Method 367. California Test Method 367 is hereby amended as follows for ARHM:

A. The Specific Gravity used in California Test 367, Section “B. Voids content of Specimen”, shall be determined using California Test 308, Method A.

B. California Test 367, Section “C. Optimum Bitumen Content” is revised as follows:

1. Plot asphalt rubber binder content versus void content for each specimen on form TL-306 (Figure 3), and connect adjacent points with straight lines.

2. From Figure 3 select the theoretical asphalt rubber binder content that has the air voids specified in this Subsection 203-11.3.1. (Engineer may elect a lower binder content following a review of stability values.)

3. Record the asphalt rubber binder content in Step 2 as the Optimum Bitumen Content (OBC).

C. Laboratory mixing and compaction shall be in conformance with the requirements of California Test 304, except the mixing temperature of the aggregate shall be between three hundred (300) and three hundred twenty-five (325) degrees Fahrenheit. The compaction temperature of the combined mixture shall be between two hundred eighty-nine (289) and three hundred (300) degrees Fahrenheit. 203-11.4 Mixing.

The third paragraph of Subsection 203-11.4 is hereby deleted and replaced with the following:

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The proportions of the materials, by total weight of asphalt-rubber binder, shall be eighty (80) percent combined paving asphalt and asphalt modifier, and twenty (20) percent CRM.

The temperature of the blended asphalt and modifier shall be between one hundred ninety (190) degrees Celsius (three hundred seventy-five (375) degrees Fahrenheit) minimum and two hundred twenty-six (226_ degrees Celsius (four hundred forty (440) degrees Fahrenheit) maximum when the CRM is added. The temperature shall not exceed six (6) degrees Celsius (ten (10) degrees Fahrenheit) below the actual flash point of the mixture. The CRM shall be combined and mixed together in an asphalt-rubber mechanical blender meeting the requirements of 203-11.5. The combined asphalt and CRM shall be pumped into a reaction tank or distributor truck meeting the requirements of 203-11.5, Item 3A). The temperature of the asphalt-rubber mixture shall be between one hundred ninetyfour (194) degrees Celsius (three hundred eight (380) degrees Fahrenheit) minimum to two hundred eighteen (218) degrees Celsius (four hundred twenty-five (425) degrees Fahrenheit) maximum during the reaction period.

After reacting, the asphalt rubber binder shall conform to the requirements in Table 203-

11.4 The minimum reaction period shall be the time from complete incorporation of materials into the mix to the time that the asphalt-rubber meets all specifications for reacted material, but no less than ninety (90) minutes. The reaction shall be considered complete when the second (2nd) of two (2) viscosity test results, taken fifteen (15) minutes apart, is significantly lower than the first (1st) result. Once established, the minimum reaction period shall remain unchanged, unless there are changes in materials or equipment that may affect rubber digestion, in which case a new reaction period shall be established per specifications. The Engineer’s decision shall be final for determination of the minimum reaction period.

All material shall be tested for viscosity and verified as to complete reaction prior to transfer to any storage tank or use of the reaction tank for feet to the hot mix plant. Material reacted lower than specified temperature, but above one hundred eighty-five (185) degrees Celsius (three hundred sixty-five (365) degrees Fahrenheit), or transferred to a storage tank prior to completion of reaction as specified, shall be reacted for total period of three (3) hours prior to use. Any such transfer shall be described in the comments column of the Asphalt Rubber Batch Log.

Inability to maintain reaction temperatures above specified minimums will be cause to terminate paving operations. The Contractor is reminded that if the reaction tank does not have a gas retort heating system capable of raising the temperature of its contents at least twenty (20) degrees per hour, there exists the inherent potential for such below minimum temperatures to become an irreversible condition. Certification was previously provided at time of bid opening in the bid that the asphalt-rubber hot mix plant owner, the paving subcontractor and asphalt-rubber supplier have been made fully aware of these provisions.

The Contractor shall test viscosity and record the following information for every tank of asphalt-rubber prior to being transferred to storage or directed to feed to the hot mix plant:
1) Temperature of stored asphalt cement material at time of loading

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2) Time at which the reaction tank is fully loaded
3) Tons of asphalt-rubber added to the tank for the batch 4) Total asphalt-rubber in the tank after loading
5) The beginning time of reaction (Fully loaded and above three hundred eighty (380) degrees Fahrenheit)
6) Binder temperature at time of sampling
7) Temperature of tested material
8) Viscosity reading
9) Time of viscosity test (All test results must be prior to use.) If more than twenty (20) percent of a batch is holdover material, the reaction time may be reduced, but a line item must be provided on the Asphalt-Rubber Batch Log showing items 6, 7 and 8 for a test just prior to loading new material. Reaction shall be considered to begin after all material is added. If more than twenty (20) percent is holdover material, reaction time can be reduced to the fraction of total material that is holdover material, times ninety (90) minutes, but shall be no less than twenty (20) minutes.

A copy of the Asphalt-Rubber Batch Log shall be provided to the Engineer upon request.

A copy of the batch log sheet and all circle charts for the day shall be faxed to the City within ninety (90) minutes of ending production of ARHM for the day. To fit eight and one-half (8½) by eleven (11) inch sheets, the circle chart may be faxed in two (2) parts with an overlap. See Subsection 203-11.5 for circle chart requirements.

The Maximum value for Haake Field Viscosity @ one hundred ninety-one (191) degrees Celsius (three hundred seventy-five (375) degrees Fahrenheit) in Table 203-11.4(A) is hereby changed to 2400 Centipoise.

The first fully reacted passing sample on each batch, prior to transfer to storage or converting to feed to the ARHM mix plant, shall be poured into a clean gallon can that has been pre-certified by the Engineer. It shall be the responsibility of the Contractor to ensure that sufficient sample cans with lids are at the plant, such that they can be pre-certified at least three (3) days prior to use. If the Engineer is not at the plant at start up, the Engineer will provide certified labels, which are pre-numbered and signed by Engineer to be affixed to the cans as they are consecutively used by number.

The Contractor shall conduct sampling such that the pre-certified sample can numbers correspond to the batch numbers beginning with one (1) at the start of the project, increasing consecutively with each batch, without restarting the count at any point. After testing and recording the information for the batch, the corresponding pre-certified sample can shall be filled and stored for the duration of the project or until the Engineer takes possession of the can.
211-4.3 The second and third sentences of Item C under Test Procedure is hereby deleted and replaced with the following:

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In one (1) continuous operation, turn off the spindle rotation, remove the spindle vertically from the binder (after heating), discontinue stirring the binder and immediately insert the spindle back into the center of the binder to full immersion and wait five (5) seconds. While holding the viscometer level, turn the spindle on and watch the needle on the viscometer dial and record the maximum value obtained on the dial.
203-11.5 Equipment for production of Asphalt-Rubber.

Add the following to Item 3) of 203-11.5:

A) Reaction Tank. The asphalt-rubber material shall be held in a reaction tank separate from the storage tank feeding the ARHM plant, until the reaction is complete. The reaction tank shall have agitation sufficient to increase the viscosity of the mixture to a peak viscosity reading at least twenty (20) percent higher than the viscosity reading of the material measured at a time that the material otherwise meets specifications for reacted material. The time of reaction may be extended as needed to produce this result. It shall be the responsibility of the Contractor to demonstrate to the Engineer through viscosity readings at appropriate times that the equipment conforms to these requirements. If this cannot be demonstrated, the reaction time shall be three (3) hours. Once established, the reaction time shall be the minimum time for reaction unless there are changes in materials or equipment, in which case a new reaction time shall be established per specifications. The Engineer’s decision shall be final.

The reaction tank shall have a functioning paper circle chart thermometer device, which shall record tank temperatures whenever asphalt-rubber is in any stage of production. Seven (7) days before production of asphalt-rubber starts, the Contractor shall provide the Engineer approximately double the number of charts estimated to be needed to produce the necessary binder quantity. These charts will be numbered and signed by the Engineer and returned to the Contractor prior to start of production. These signed and numbered charts shall be used throughout production of the asphalt-rubber binder. Charts shall be used in the consecutive order as numbered by the Engineer beginning with number one (1), and shall be returned weekly after use to the Engineer. Charts will be identified with the date they were used by the Contractor at time of installing on the equipment, and shall be identified as to the tank to which they were attached. Production of asphalt-rubber shall be terminated if this procedure is not followed and will not be restarted until the Contractor demonstrates to the Engineer that it is capable of complying with this requirement.

At the start of each production day, the paper chart shall be replaced with a new signed, dated and numbered sheet, the lead scribe shall be sharpened or ink well filled, and the circle chart shall be calibrated against a sample of material drawn early from the first batch of the day. Any calibration adjustments shall be recorded in the appropriate space provided on the batch log sheet. A spare functional circle chart device shall be at the plant at all times for immediate installation should failure

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occur on a circle chart device being used. Calibration shall be performed as part of such installation. The lack of a functional circle chart device on the reaction tank shall be cause to terminate production of asphalt-rubber binder. A blunt lead scribe or low ink, or a paper chart used on a prior day will be considered to render the device non-functional.

B) Storage Tank. After a complete reaction is verified by viscosity readings acceptable to the Engineer, the material shall be held in a storage tank that is fully isolated from material that is not fully reacted. This tank shall be the only tank feeding the ARHM plant. No material shall be transferred to the storage tank feeding the plant until reaction is complete in the reaction tank.
302-9 Asphalt-Rubber Hot Mix (ARHM).
302-9.1General.

ARHM construction shall be complete in all areas prior to slurry.

Tack coat material for overlay shall be SS-lh applied at a rate of 0.32 liter per square meter (0.08 gal/SY) on all areas except on ARAM, where tack coat shall be at a rate of 0.24 liter per square meter (0.05 gal/SY).

All PCC surfaces, to be crossed by trucks used to haul ARHM, that are within five hundred (500) feet of the work limits shall be covered with sand or other durable covering prior to applying tack coat.

The Contractor shall have sufficient power brooms on site during all periods of distribution and spreading to provide for cleanup of haul routes and work areas. Power broom shall provide miscellaneous cleanup of ARHM spoils as directed by the Engineer. 302-9.2 Mixing Binder with Aggregate.

For drum plants, the system shall run fully automatic with the only input to the AC plant computer being information transmitted automatically from a Corealis mass flow meter on the line of the asphalt-rubber feed to the AC plant. All automatic shutdown features of the AC plant shall be fully functional.
302-9.4 Distribution and Spreading.

The ambient temperature shall not exceed 105F at time of placing ARHM.

The temperature of ARHM shall be minimum two hundred ninety (290) degrees Fahrenheit directly behind the paving machine and high enough upon delivery that pavement temperature after two (2) passes with the breakdown roller exceeds two hundred forty (240) degrees Fahrenheit.

To avoid picking up loose rock in the overlay area, the tires of all trucks must be lightly oiled with linseed oil or soy bean oil or approved equal. Diesel fuel will not be allowed

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on the project at all for oil down of any equipment.

Raking of ARHM shall be eliminated as much as possible. ARHM material shall not be cast across the mat under any circumstance. Raking shall be just enough to set up edges for uniform joins without casting material. Screed controls shall be the predominant means of controlling material at joins. In areas where paving machines cannot be used due to space constraints, material shall not be thrown by shovels. Material shall be removed directly from the paving machine hopper and shall be placed directly in its final location, to be distributed with minimal raking. Material may be dumped directly from a truck, but further material distribution shall be by shovel directly to its final location with minimal raking. A small rubber tire tractor with a screed type attachment may be used to spread a pile dumped from a truck, but raking shall be minimized after spreading.

The paving machine screed shall not be pulled across an area already paved with ARHM, even adjacent to narrow areas to be paved. Such narrow areas shall have ARHM distributed by methods specified by shovel or rubber tire tractor, unless the adjacent area has hardened enough and will not be significantly marred by passing the screed over it.

Even if hardened adequately, the Contractor shall spread rock dust by hand tools to avoid cohesion of the ARHM in the screed to the existing surface of such areas of freshly cured ARHM.

The Contractor shall maintain a functioning infrared heat measurement device in close proximity to each paving machine at all times. The Contractor shall provide a pavement temperature reading, with an infrared heat measurement instrument, when requested by the Engineer. Inaccessibility of a heat measurement shall be cause for termination of paving operations.

Transverse cold joints shall be provided such that longitudinal joints are not left exposed at the end of the workday.

Asphalt pavers shall be equipped with automatic screed controls and a sensing device or devices. Automatic grade and slope control shall be used for overlays.

All joints shall be sealed after rolling.

When placing asphalt concrete to the lines and grades noted in the plans or as approved by the Engineer, the automatic screed controls shall control the longitudinal grade and transverse slope of the screed. Grade and slope references shall be furnished, installed, and maintained by the Contractor. The Contractor shall use a ski device, the minimum length of the ski device shall be ten (10) m (thirty (30) ft.). The ski device shall be a rigid one (1) piece unit and the entire length shall be utilized in activating the sensor. The Contractor may use a laser to control the screed.

When placing the initial mat of asphalt concrete on existing pavement, the end of the screed nearest the center line shall be controlled by a sensor activated by a ski device not less than ten (10) m (thirty (30) ft.) long. The end of the screed farthest from center line shall be controlled by an automatic transverse slope device set to reproduce the cross slope approved by the Engineer.

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When paving contiguously with previously placed mats, the end of the screed adjacent to the previously placed mat shall be controlled by a sensor that responds to the grade of the previously placed mat and will reproduce the grade in the new mat within a three (3) mm (one one-hundredths (0.01) ft.) tolerance. The end of the screed farthest from the previously placed mat shall be controlled in the same manner as when placing the initial mat.

Should the automatic screed controls fail to operate properly during any day’s work, the Contractor may use manual control of the spreading equipment for the remainder of that day; however, the equipment shall be corrected or replaced with alternative automatically controlled equipment conforming to the requirements in this section before starting the next day’s work.
302-9.4 Rolling.

Rolling along a joint shall be such that the widest part of the roller is on the hot side of the joint.

Join lines between successive runs shall be within one hundred fifty (150) mm (six (6) inches) of lane lines or a minimum of three and six-tenths (3.6) m (twelve (12) feet) outside of the outer most lane line.

For ARHM-OG, initial breakdown rolling shall be static. Breakdown roller shall make two (2) passes over all areas. A pass shall mean one (1) passage of the roller over an area.

An intermediate roller of the same or greater width than the breakdown roller shall be rolling directly behind the breakdown roller at all times, and paving shall cease if intermediate rolling is terminated for any reason. Additional intermediate rollers may be necessary depending on production rates. Intermediate roller shall make two (2) passes unless otherwise directed or approved by the Engineer.

For ARHM-GG, initial breakdown rolling shall be vibratory. Rolling in vibratory mode shall not be performed after ARHM material temperature falls below two hundred forty (240) degrees Fahrenheit, due to disturbance of the bonds beginning to set up in the binder at lower temperatures. An intermediate roller of the same or greater width than the breakdown roller shall be rolling directly behind the breakdown roller at all times, and paving shall cease if intermediate rolling is terminated for any reason. Additional intermediate rollers may be necessary depending on production rates.

The rolling pattern shall be approved by the Engineer and once established, the rolling pattern shall remain consistent, unless conditions change and a modified rolling pattern is needed to conform to specification. Engineer shall be notified immediately on change of rolling pattern.

All finish rolling shall be performed by a separate finish roller.

To ensure optimum quality control, the use of more than one (1) paver must be approved in advance by the Engineer, and will generally require one (1) foreman, one (1) sweeper

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and a full complement of rollers per Subsection 302-5 of the Standard Specifications and this Subsection 302-9.5 for each paving machine.

An extra breakdown roller shall be on site at all times, free of defects.

A finish roller shall be provided in addition to intermediate rolling to perform all finish rolling, such that the intermediate roller can stay immediately behind the breakdown roller at all times.
302-9.5.1 Density and Smoothness. For ARHM-GG, density and smoothness shall conform to Subsection 302-5.6.2, except the second and third paragraph of Subsection 302-5.6.2 shall not apply to ARHM.

The compaction after rolling shall be ninety-five (95) percent of density obtained with the California Kneading Compactor, California Test 304 as modified and measured in conformance to this Subsection 302-9.5.1.

The field density of compacted ARHM shall be determined by:
1) A nuclear asphalt testing device, calibrated in conformance with California Test 375, except as modified in this Subsection 302-9.5.1, in the field designed to measure the density of pavement of the thickness being constructed; or
2) Core with density determined as follows:
a) Saw the ARHM lift of pavement from the top of the core approximately perpendicular to the axis of the core, just above any underlying pavement or as necessary to obtain a clean flat surface at the bottom of the sample.
b) Clean and dry the sample as described in ASTM 1188.
c) Perform California DOT Test 308 Method A step a.
d) Prior to proceeding to steps 308A b., 308A c., 308A d. and 308A e., place the core, top surface down, firmly into a flat pan of hot liquid paraffin approximately one-quarter (¼) inches deep. Allow the sample and paraffin to cool to firm solid state and remove the sample from the pan by cutting around the perimeter. Trim the edges of paraffin parallel to the side of the sample cylinder, and weigh the cylinder to obtain:

G = Mass in grams of level sealed paraffin-treated specimen in air. e) Perform 308A b., 308A c., and 308A d on the sample from D) above. f) Complete the remainder of Test 308A, except replace the formula in 308A e. with the following: Bulk Specific Gravity
= A
(D – E) – (D – G) / F
In case of dispute, method 1 shall be used, except the Contractor may elect

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to use method 2, but all costs for such procedures shall be borne by the Contractor to provide the full set of coring, tests and documentation in conformance with the Standard Specifications, and all test methods shall be modified as specified in these Special Provisions. Also, the Contractor shall notify the Engineer at least three (3) days in advance of coring operations, and immediately after core testing is complete the Contractor shall deliver cores to the City for verification.
302-9.5.1.2 Maximum Density. Maximum density samples shall be prepared in conformance with Calif. Test 304, except:
1) Compaction shall be performed between two hundred eighty-five (285) and two hundred ninety (290) degrees Fahrenheit.
2) The leveling load shall be applied while material is between one hundred ninety (190) and two hundred (200) degrees Fahrenheit. 3) A Marshall base shall be used during leveling load procedure. 4) Sample shall be allowed to cool to less than one hundred (100) degrees Fahrenheit prior to removal from test sleeve and Marshall base assembly.

Nuclear test procedures, including correlation with core densities, shall be in conformance with California Test 375, except as follows:

Core locations for correlation with cores shall be selected based on appearance of relatively tight surface texture, and the test strip shall be selected on this basis. If a test location is determined to have a significantly open texture relative to other areas within the test strip, the location shall not be used. This selection criteria is not to be considered significant to the outcome of, but only as a guideline towards obtaining samples that are relatively well compacted to yield results with minimum standard deviation. The locations shall be well clear of grade breaks and joints.

One (1) core centered on the gauge will be used instead of two (2) at each location.

Use method 2 in this Subsection 302-9.5.1 to determine density of cores. Surface voids shall not be filled with sand.

The Contractor will be notified in writing at least five (5) days in advance of such correlation testing and will be invited to have a nuclear gauge onsite to correlate a second gauge. If not independently calibrating at that time, the Contractor shall bear the full expense of performing correlation for his nuclear gauge under the specified procedures, but shall notify the City five (5) days in advance of such correlation testing, such that the City can correlate with the Contractor’s gauge, if Contractor disagrees with City’s test results.
302-9.5.2 Compaction Payment Reductions. Based on laboratory tests on AC pavements revealing a highly significant loss of life span for each one (1) percent reduction of compaction, and the well known catastrophic effect of oxidation and stripping of asphalt products due to interconnected voids that develop below ninetyfive (95) percent compaction, and the extreme expense of removing and replacing pavement not compacted to the specified minimum, a nominal deduction of payment will be applied for under-compacted ARHM pavement. The bidder in submitting a bid fully accepts the provisions in this Subsection 302-9.5.2 and agrees

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that the nominal payment deduction is acceptable and reasonable for these purposes.

Payment reductions will be applied to ARHM compacted less than ninety-five (95) percent of maximum density, the specified minimum, and greater than ninety-one and nine-tenths (91.9) percent of the maximum density based on nuclear testing with Part 3 Test Site Selection of California Test 375 modified as follows:

A lot will be one day’s production or other lesser area of paving as determined by the City to be deficient in terms of compaction, and a pull will be the width between joints or edge of pavement as the lot is placed.

Test site selection will conform to California Test 375 Part 3, except the number of tests shall be the area of the lot in square feet divided by 400 and any test site within one-half (½) m of a grade break or pavement joint shall be relocated laterally towards the center of the pull to one-half (½) m from such joint or grade break.

The mathematical mean average of percent of maximum density represented by all these tests shall be calculated, except any test results outside of this mean plus two (2) standard deviations based on all tests, shall be rejected. The mean average shall be calculated directly from the remaining values. A compensation reduction in conformance with Table 302-9.5.1A will be applied to the contract unit price for ARHM for material within any lot determined to be below minimum relative compaction, except any lot with tests indicating compaction ninety-one and ninetenths (91.9) percent or less shall be removed and replaced at the Contractor’s expense.
302-9.5 Rock Dust Blotter. The second sentence of Subsection 302-9.6 is hereby deleted and replaced with the following:

TABLE 302-9.5.1A

REDUCED COMPENSATION FACTORS
Relative
Compaction
(Percent)
Reduced
Compensation
Factor
Relative
Compaction
(Percent)
Reduced
Compensation
Factor

95.0 0.000 93.4 0.062

94.9 0.002 93.3 0.068

94.8 0.004 93.2 0.075

94.7 0.006 93.1 0.082

94.6 0.009 93.0 0.090

94.5 0.012 92.9 0.098

94.4 0.015 92.8 0.108

94.3 0.018 92.7 0.118

94.2 0.022 92.6 0.129

94.1 0.026 92.5 0.142

94.0 0.030 92.4 0.157

93.9 0.034 92.3 0.175

93.8 0.039 92.2 0.196

93.7 0.044 92.1 0.225

93.6 0.050 92.0 0.300

93.5 0.056

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Rock dust blotter shall be washed concrete sand per Fine Aggregate in Section 90, spread at rate of two (2) to three (3) pounds per square yard as necessary to maintain traffic at the direction of the Engineer. Excess sand spread on adjoining areas to receive ARHM-OG shall be thoroughly swept before spreading any binder.

14. ASPHALT-RUBBER AND AGGREGATE MEMBRANE (ARAM) SURFACING AND

INTERLAYER
ARAM shall conform to Subsection 302-10 of the GREENBOOK, except as modified herein. 302-10 Asphalt-Rubber and Aggregate Membrane (ARAM)
Where ARAM is to be placed directly on existing pavement, pavement preparation shall include the following preparation.

Areas as directed by the Engineer shall be skin patched in conformance with Subsection

10.02 of these Special Provisions.

Cracks shall be treated as follows:

A singular crack shall be considered to be a crack on the perimeter of an otherwise uncracked asphalt pavement area exceeding four (4) feet in minimum dimension. Cracks not fully interconnected in forming a complete perimeter shall be considered singular cracks, unless the maximum dimension across the partial perimeter between cracks can be measured as less than four (4) feet. Such pavement area is defined by the cracks forming its perimeter.
1) The Contractor shall spray all weeds in cracks with Monsanto brand Roundup, a minimum of two (2) weeks prior to paving. All weeds shall be resprayed if rain occurs within forty-eight (48) hours after application;
2) All cracks and holes with weeds shall be routed clear to a depth of one (1) inch; 3) All holes and cracks exceeding one and one-half (1½) inches wide shall be filled with asphalt concrete approved for skin patch compacted level with the top of the existing pavement;
4) All cracks and joints one-quarter (¼) inch or greater in width shall be blown thoroughly clear with high pressure air or power broomed clean to a depth of three-quarters (¾) inch minimum immediately ahead of the crack filling operation; and 5) All joints and singular cracks between one-quarter (¼) inch and one and one-half (1½) inches in width shall be filled with Crafco Polyflex III or equal.

Filler shall be within one-eighth (1/8) inch below and flush with existing pavement surface and shall be thoroughly squeegeed, as necessary, to attain this result, except in cold mill areas. In cold milled areas, crackfiller shall be flush or below the top of cold mill texturing and shall be thoroughly squeegeed, as necessary, to attain this result.

Any crackfiller in excess of that specified at any point on the pavement after crackfiller has cooled shall be heated with a torch and thoroughly squeegeed to meet specifications. Crack

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filler in cold mill areas that becomes unbonded shall be removed, and the lack of bonding shall be considered evidence that the crack was not thoroughly blown clean, thereby requiring recleaning, refilling and squeegeeing.

All crack preparation shall be performed after cold milling.

Payment for crack filling will be compensated by the lump sum bid item for crack filling.

All other preparation work related to crack preparation, including weed killing and power brooming or blowing out cracks will considered included in the unit price bid for ARAM per square yard.
302-10.1 Application
The maximum viscosity of asphalt-rubber material in Table 203-11.4(A) shall be 2400 Centipoise.

The maximum ambient temperature for placement of ARAM shall be one hundred five (105) degrees Fahrenheit.

Temperature of asphalt-rubber spread for ARAM shall be between three hundred ninety-five (395) degrees Fahrenheit and four hundred twenty-five (425) degrees Fahrenheit.

Asphalt-Rubber shall conform to Subsection 203-11 of GREENBOOK including modification of that section included in these Special Provisions.

The Contractor shall provide a pavement temperature reading, with an infrared heat measurement instrument, when requested by the Engineer.

Item 4. of the second paragraph of Subsection 302-10.1 is hereby deleted and replaced with the following:

Material shall be applied at a rate between two and one-half (2½) and three (3) Liters per square meter (six-tenths (.60) to seven-tenths (.70) gallons per square yard) as directed by the Engineer.

The first sentence of the third paragraph of Subsection 302-10.1 is hereby deleted and replaced with the following:

The asphalt-rubber mixture may be applied to the roadway immediately after mixing and reacting at a temperature between two hundred one (201) degrees Celsius (three hundred ninety-five (395) degrees Fahrenheit) minimum to two hundred eighteen (218) degrees Celsius (four hundred twenty-five (425) degrees Fahrenheit) maximum.

Reference is made to Subsection 7-1.01F Air Pollution Control whereby the Contractor shall comply with all air pollution rules and regulations.

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302-10.2 Screenings The first sentence of the first paragraph of Subsection 302-

10.2 is hereby deleted and replaced with the following:

Following application of asphalt-rubber, screenings shall be placed over all areas receiving asphalt-rubber. Screenings shall conform to quality requirements of Class A aggregate with the following modifications:

Maximum LA Rattler value at five hundred (500) revolutions shall be thirty-five (35).

Eighty-five (85) percent of coarse aggregate shapes shall be “proportioned particles,” a proportioned particle being defined as a particle having a minimum dimension greater than one-half (½) the maximum dimension as measured by caliper. Percentage of proportioned particles shall be determined by California Test 205 with the words “proportioned particles” substituted for “crushed particles.” California Test 205, Section D, definition of a crushed particle is revised as follows:
“A particle having two (2) or more fresh mechanically fractured faces shall be considered a crushed particle.”
The aggregate for screenings shall conform to following gradations:

Sieve Size Percent Passing
¾” 100
½” 95-100
3/8” 70 -85
No. 4 0-10
No. 8 0-3
No. 200 0-1
No mineral filler or material from sand or rock dust bins shall be included in the mix.

The gradation ranges shown for screenings shall be considered the Contract Compliance Range. The Operating Range for the one-half (½”) sieve shall be the full contract compliance range. The Operating Range for all other sieves, except the 200 sieve, shall be two (2) percentage points inside both limits of the Contract Compliance Range. If gradation-testing results do not meet the Operating Range requirements but meet the Contract Compliance Range, placement of ARAM may be continued for the remainder of the day. However, another day of work shall not be started until tests, or other information, indicate to the satisfaction of the Engineer that the next material to be used in the work will comply with the requirements specified for Operating Range.

Except for the No. 200 sieve, it is the intent of the Specifications that the target percentage be the central value in the Contract Compliance Range.

Any change in source of aggregate supply requires two (2) weeks advance notice in writing to the Engineer, and submittals and testing in conformance with specifications for a new mix design. No single bin shall receive aggregate from more than one (1) source. The Contractor shall provide a copy of aggregate

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delivery tickets for aggregate delivered for use on the project.

Trucks for hauling cover material shall be tailgate discharged and shall be equipped with a device to lock onto the hitch at the rear of the aggregate spreader. Haul trucks shall also be compatible with the aggregate spreader so that the dump bed will not push down on the spreader when fully raised or have too short an apron resulting in aggregate spillage while dumping into the receiving hopper.

Screenings shall be coated completely black on the full particle surface with AR4000 asphalt at a central mixing plant to prevent free dust, and shall be preheated one hundred twenty-seven (127) degrees Celsius (two hundred sixty (260) degrees Fahrenheit) to one hundred sixty-three (163) degrees Celsius (three hundred twenty-five (325) degrees Fahrenheit).

Screenings shall be placed at a rate between thirty-two (32) and forty (40) pounds per square yard.

All rollers shall be operational at all time unless full roller coverage is complete and cessation of rolling is authorized by the Engineer. The spreader shall not stop over an area of rocks that are spread but not rolled.

The spreader shall clear all areas to allow rollers to complete roller coverage without any delay.

A layer of washed concrete sand per Fine Aggregate in Section 90 spread at rate of two (2) to three (3) pounds per square yard shall be applied as necessary to maintain traffic at the direction of the Engineer. Excess sand spread on adjoining areas to receive ARAM shall be thoroughly swept before spreading any binder.

15. CUL-DE-SAC ASPHALT CONCRETE OVERLAY
Cul-de-sac AC paving shall be paved prior to slurry. The cul-de-sac bulbs shall be paved with one-half (½) inch Maximum Medium PG70-10 asphalt concrete in conformance with the Cul-de-sac Bulb typical section. The rolling pattern in the Standard Specifications may be modified at the Contractor’s discretion to achieve the minimum level of compaction hereby specified as ninety-five (95) percent of relative maximum density. Payment shall be by the unit price bid for Cul-de-sac AC Overlay including materials, tack coat, placement, compaction, traffic control and all incidentals.

16. CONCRETE AND MASONRY CONSTRUCTION
Concrete shall conform to Subsection 303 of the GREENBOOK, except as modified herein.

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SECTION 303 IS AMENDED AS FOLLOWS:
303-1 Concrete Structures
303-1.12 Payment
ADD THE FOLLOWING PARAGRAPH:

Payment for concrete structures shall include full compensation for excavation, structural excavation, disposal of excess dirt, backfill, concrete, forming, and reinforcing, complete and in place and no additional payment will be made therefor. 303-5 Concrete Curbs, Walks, Gutters, Cross Gutters, Alley Intersections, Access Ramps, and Driveways.
303-5.1.1 General
ADD THE FOLLOWING:

When removals of curb and/or sidewalk are located at curb return, the Contractor shall install access ramps. The Contractor is to construct all access ramps in accordance with American Disability Act (“ADA”) Standards/California Code of Regulations Title 24 – Accessibility Regulations. If the ramps constructed by the Contractor are found to be in non-compliance with ADA Standards, the Contractor will be required to remove and replace the ramps to ADA Standards at the Contractor’s expense.

All removed curb and gutter, cross gutters, spandrels, driveway approaches, and sidewalks shall be replaced within three (3) calendar days, unless the Contractor provides reasonable documentation to exceed the three (3) day limit five (5) working days before removal and approved in writing by the Engineer. The Asphalt Concrete patch shall be placed within five (5) working days after the curb and gutters are replaced, and seven (7) days after the cross gutter and spandrels are replaced.

No PCC shall be ordered and/or placed until the forms and subgrade have been inspected and approved by the Engineer in the field.

All pull boxes, water meter boxes, and water valve covers shall be adjusted to proposed finish grade and approved by the Engineer in the field prior to placement of the PCC.
303-5.1.3 Driveway Entrances
REPLACE LAST PARAGRAPGH WITH THE FOLLOWING:

Driveway approaches shall be one hundred fifty (150) mm (six (6) in.) thick for single family residential areas and two hundred (200) mm (eight (8) in.) thick for all other areas.

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303-5.3 Placing Concrete
ADD THE FOLLOWING:

All temporary storage of PCC liquid residues and mixer wash out on the project site shall be deposited within a self-containment area or bin. The Contractor may elect to allow the moisture to evaporate and dispose of the material as a solid or dispose of the material as a liquid. The Contractor shall notify the Engineer in writing, as a preconstruction meeting submittal, what method of disposal will be utilized.

If disposal of the material in liquid form is chosen, the Contractor must provide in writing, as part of the preconstruction meeting submittal, the name, location, telephone number, and a copy of the California Regional Water Quality Control Board permit for disposal of PCC liquid residue, or if the disposal site is located outside of the State of California, a copy of a permit issued by that state is required. The Engineer will verify the information before the Notice to Proceed is issued.

All PCC and related work, including grading and forming, shall be suspended if the Contractor does not have a PCC liquid residue or mixer wash out containment area or bin on site one (1) working day before the scheduled placement of PCC. The Contractor will not be allowed any additional compensation or extension of time for suspended operations due to not having a containment area or bin on site. The containment area or bin shall have sufficient room for two (2) days deposit of material.

The Contractor shall provide the Engineer with a copy of the landfill receipts or disposal site receipt and weight ticket showing disposal of PCC liquid residues and wash out within five (5) working days of disposal.
303-5.4.3 Weakened Plane Joints, (a) General
ADD THE FOLLOWING:

All weakened plane joints shall be spaced at a maximum of three (3) m (ten (10) ft.) for curbs, gutters, and sidewalks. Scoring lines shall conform to those prevailing in the area and be uniform in spacing.
303-5.5.2 Curb
ADD THE FOLLOWING:

The curb and gutter surface shall not vary more than three (3) mm (one-one hundredth (0.01) ft.) from three (3) m (ten (10) ft.) straightedge except at the grade changes. Prior to the removal of the forms, the surface shall be finished true to grade by means of a straightedge float of not less than three (3) m (ten (10) ft.) in length, and operated longitudinally over the surface of the concrete. Form clamps shall be so constructed as not to interfere with the operation of the float. In no event shall forms be removed while the concrete is sufficiently plastic to slump. The top and face of the finished curb shall be

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true and straight and top surface of curbs shall be of uniform width, free from humps, sags, blemishes or other irregularities.
303-5.5.3 Walk
ADD THE FOLLOWING:

The sidewalk surface shall not vary more than five (5) mm (two one-hundredths (0.02)’) from the three (3) m (ten (10)’) straightedge except at grade changes, and the finished surface shall be free from humps, sags, blemishes or other irregularities. All sidewalks shall be a minimum of one hundred (100) mm (four (4)”) thick, except at driveways where the sidewalks shall be a minimum of one hundred fifty (150) mm (six (6)”) thick for single family residential areas and two hundred (200) mm (eight (8)”) thick for all other areas. 303-5.6 Curing
ADD THE FOLLOWING:

Curing compound shall be translucent with red fugitive dye, Type 1, in accordance with Section 201-4, “Concrete Curing Compound,” of the Standard Specifications.

In order to minimize vandalism damage to the finished PCC surfaces, the Contractor shall plan his work so that no PCC is poured after one o’clock (1:00) p.m., unless otherwise authorized by the Engineer in the field.

The Contractor shall barricade and protect placed Portland Cement Concrete from all damages, marks, mars, and/or graffiti. Any Portland Cement Concrete damaged, defaced, discolored or defective shall be replaced to the satisfaction of the Engineer at the Contractor’s expense, and no additional time will be allowed.

Grading, patching or other remedies to correct the situation will not be accepted unless in the opinion of the Engineer the vandalized area is so small that it does not warrant replacement. Concrete replacement areas shall be from score mark or control joint to score mark or control joint, and full width of the sidewalk. All replacement areas shall be saw cut.

17. EXISTING LOOP DETECTORS
The Contractor or representative will meet with the City’s Director of Public Works and will clearly mark existing loops not to be damaged or removed.

If any part of the loop conductor, including the portion leading to the adjacent pull box, is damaged by the Contractor’s operations, the entire detector loop shall be replaced. If any adjacent loop(s) are/is damaged during such replacement, that loop shall also be replaced.

18. TRAFFIC STRIPING, PAVEMENT MARKINGS, AND PAVEMENT MARKERS Traffic striping, pavement markings and pavement markers shall be replaced with the same pattern as

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existing in conformance with these Special Provisions.

All details and dimensions for traffic striping and marking shall conform to the Caltrans Traffic Manual and Maintenance Manual. All arrows and “STOP” legends/limit lines shall be thermoplastic when over RAC, Conventional AC and paint when over slurry.

18.01 Layout, Alignment, and Spotting. The Contractor shall furnish the necessary control points for all striping, markers and markings, and shall be responsible for the completeness and accuracy thereof to the satisfaction of the Engineer.

The Contractor shall supply the Engineer with a copy of a complete inventory of striping, markers and marking prior to any cold milling or installation of any material. For each stripe, marker and marking, the inventory shall include sufficient definition about type of marker, stripe or marking and dimensions for control points to allow for accurate reestablishment.

In no case shall any section of street be left without the proper striping for more than forty-eight (48) hours or over weekends or holidays.

18.02 SECTION 310 – PAINTING – IN THE GREEN BOOK IS AMENDED AS FOLLOWS:
310-5 Painting Various Surfaces
310-5.6 Painting Traffic Striping, Pavement Markings, and Curb Markings DELETE THE ENTIRE SUBSECTION AND SUBSTITUTE THE FOLLOWING:

Painted traffic stripes (lane lines and speed limit markings) and applying thermoplastic pavement markings (word and symbol markings, limit lines, crosswalk, etc.) shall conform to the provisions in Section 84, “Traffic Stripes and Pavement Markings,” of the State of California Standard Specifications and these Special Provisions.

The subparagraphs of the first paragraph in Section 84-3.02, “Materials,” of the State of California Standard Specifications are amended to read:

State Specification
No.

Rapid Dry Water Base, Traffic Line.—White, Yellow and Black PTWB-01 The second and third paragraphs in Section 84-3.02, “Materials,” of the State of California Standard Specifications are amended to read:

State Specifications for traffic paint and glass beads may be obtained from the Transportation Laboratory, 5900 Folsom Boulevard, Sacramento, CA 95819- 4612, telephone number (916) 227-7289.

Glass beads shall conform to 1-ACOT type beads or equal.

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The Contractor shall layout and “cat-track” the alignment of the proposed striping at four and one-half (4½) m (fifteen (15) ft) intervals and “spot” the proposed pavement markings as called for on the Plans. Striping shall vary no more than twelve (12) mm (two (2) in) in fifteen and two-tenths (15.2) m (fifty (50) ft) from the specified alignment. The Engineer may waive minor variations.

The Contractor shall not proceed with the painting of any striping or applying thermoplastic pavement markings until the Engineer has checked and approved the cattracking and spotting, and has authorized the Contractor to proceed.

Traffic striping shall be applied with airless equipment. All traffic striping shall be performed with a road liner type striping machine. Where the configuration or location of a traffic stripe is such that the use of a road liner type striping machine is unsuitable, traffic paint and glass beads may be applied by other methods and equipment approved by the Engineer. The Engineer shall determine if the road liner type striping machine is unsuitable for a particular use.

The first coat of paint shall be applied upon completion of the surfacing. The second coat of paint shall not be applied until seven (7) calendar days after the first coat. Each coat of paint shall be applied at the wet film thickness of ten (10) – twelve (12) mils for white and yellow paint and seven (7) mils for black paint. All paint shall be applied at a relative humidity below seventy-five percent (75%) and an ambient temperature above thirteen (13)° Celsius (fifty-five (55)° Fahrenheit), unless otherwise approved by the Engineer.

Except for black paint, No. 1 reflective glass beads shall be uniformly incorporated in all coats of paint concurrently with the application of the paint. The glass beads shall be embedded in the coat of traffic paint being applied to a depth of at least one-half (½) their diameters. The reflective glass beads shall be applied to the first coat of paint at the rate of seven-tenths (0.7) kg (one and one-half (1½) lb) of beads per liter (twenty-six one hundredths (0.26) Gal) of paint, and to the second coat of paint at the rate of ninety-five one hundredths (0.95) kg (two (2) lb) of beads per liter (twenty-six one hundredths (0.26) Gal) of paint.

Except as otherwise noted on the Plans or as directed by the Engineer, all angle points, as shown on the striping Plans shall be painted as a smooth, tangent curve with a radius and length as approved in the field.

Temporary tape or reflective markers utilized for the purposes of interim delineation for centerline, lane lines and crosswalk lines shall be placed to the side of the final striping pattern in such a way so that it will not interfere with the first coat of paint. All temporary tape and reflective markers applied for the purpose of interim delineation shall be removed by the Contractor at no additional cost to the City upon completion of the first coat of striping and prior to the final striping.

Stencils used for pavement markings must conform to the latest Caltrans approved NonMetric Stenciling Standards.

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Add to Subsection 84-1.04, “Protection from Damage,” of the State of California Standard Specifications the following:

Newly painted or existing striping or applied thermoplastic pavement markings which are damaged as a result of the construction, including wheel markings by public traffic and the construction equipment, shall be repainted or thermoplastic replaced, and any associated removals shall be performed as outlined in these Special Provisions at the sole expense of the Contractor and no separate compensation will be allowed therefore.

Existing traffic striping and pavement markings that do not conform to the approved Plans shall be removed by wet sandblasting. Other methods may be requested by the Contractor, but shall be submitted in writing to the Engineer for approval. Blackout of existing traffic striping or pavement markings, which do not conform to the approved Plan, shall not be allowed.

Painting traffic stripes and applying of thermoplastic pavement markings shall not be separately measured.

The Contract lump sum (LS) price paid for STREET STRIPING AND PAVEMENT MARKINGS shall include full compensation for furnishing all labor, materials, tools, equipment and incidentals, and for doing all the work involved in painting traffic stripes and applying thermoplastic pavement markings including establishing alignment for stripes, layout work and sandblasting markers, complete in place, as shown on the Plans, as specified in the Standard Specifications and these Special Provisions and as approved by the Engineer, and no additional compensation will be allowed therefore.

PAVEMENT MARKERS
Pavement markers shall conform to the provisions in Section 85, “Pavement Markers,” of the State of California Standard Specifications and these Special Provisions.

Certificates of compliance shall be furnished for pavement markers as specified in “Prequalified and Tested Signing and Delineation Materials,” elsewhere in these Special Provisions.

Reflective pavement markers shall comply with the specific intensity requirements for reflectance after abrading the lens surface in accordance with the “Steel Wool Abrasion Procedure,” specified for pavement markers placed in pavement recesses in Section 85-1.05, “Reflective Pavement Markers,” of the State of California Standard Specifications.

Non-reflective pavement markers shall conform to the requirements of the Section 85-1.04, “Non-Reflective Pavement Markers,” of the State of California Standard Specifications.

The bituminous adhesive used to install the markers shall be a hot melt bituminous adhesive asphaltic material with a homogeneously mixed mineral filler and shall conform with the requirements specified in Subsection 85-1.055, “Adhesives,” of the State of California Standard Specifications.

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Reflective pavement markers shall be installed per the approved Plan unless otherwise approved by the Engineer. The composition of the material shall be such that its properties shall not deteriorate when heated to, and applied at temperatures up to two hundred eighteen (218)° Celsius (four hundred twenty-five (425)° Fahrenheit), using either air or oil jacketed melters.

Reflected pavement markers shall be placed at locations as established by the applicable Caltrans striping detail noted on the approved striping Plan which includes, but is not limited to temporary painted line(s), new striping or existing striping. There shall be one marker for each location. The Contractor shall perform all work necessary to establish satisfactory locations for markers.

The Contractor shall remove existing reflective pavement markers that do not conform to the approved Plan.

Reflective pavement markers shall be of the prismatic reflector type (3M model white RP290w and yellow RPM 2912y or equal) as outlined in Subsection 85-1.05, “Reflective Pavement Markers,” of the State of California Standard Specifications.

Existing pavement markers (blue) designating location of the fire hydrants shall be replaced “in kind” after the paving is completed.

The Contract unit price paid for pavement markers (blue) shall include full compensation for furnishing all labor, materials, tools, equipment and incidentals, and for doing all the work involved in installing pavement markers (blue) complete in place, as shown on the Plans, as specified in the Standard Specifications and these Special Provisions and as approved by the Engineer.

Full compensation for pavement markers (traffic delineation) shall be considered as included in the Contract lump sum (LS) price paid for STREET STRIPING AND PAVEMENT MARKINGS and no additional compensation will be allowed therefore.

19. UTILITY COVER ADJUSTMENTS TO GRADE
Manholes and watervalves shall be adjusted to grade in accordance with Section 403-3, “Manholes in Asphalt Concrete Pavement,” of the GREENBOOK and as supplemented herein.

19.01 Reference Setting.

The Contractor shall note and reference the locations of the manholes and water valves and vaults prior to placing pavement in order to locate and raise them following the work. Manhole, water valve and of vault locations and distance from reference points to the center of each such facility shall be marked on either a curb face or other reference point indicators (stakes) by the Contractor prior to be getting any paving.

19.02 Adjustment to Grade
The Contractor shall lower manhole and water valves within areas designated for cold milling prior to

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cold milling operations. Each such manhole water valve or utility box shall be lowered to a depth below the required milling depth. Frames and covers and utility boxes shall be removed to the City yard facility and a one-half (½)” thick steel plate shall be provided to cover the hole where the utility facility exists.

Temporary AC shall be provided to fill any voids in the roadway surface which remain after the cover is in its final lowered position.

After completion of paving, the facility shall be raised to grade. The finish grade of raised facilities shall be one-quarter (¼) inch below the finish grade of the asphalt concrete pavement.

The Contractor shall exercise care such that rocks, dirt and debris do not enter sewer lines.

The water valves shall be raised as follows: the asphalt pavement immediately adjacent to the water valve shall be removed, the existing frame and cover removed, the existing sleeve extended or replaced with matching material to extend from the valve to the new valve frame elevation, the water valve frame and cover placed to match the respective water district’s standards, the water valve and cover and adjusted to proper grade, and the pavement replaced with a minimum of two inches of asphalt concrete.

The Contractor shall notify the respective utility owners at least five (5) working days in advance of the paving operations and again after completion of paving operations. Such notifications of utilities to be adjusted to grade by others shall be made in writing. The Contractor shall mark locations of utilities for those locations of facilities to be adjusted to grade by others.

The Contractor shall take care to insure no intrusion of gravel or pulverized material into the manholes or valve stem areas.

19.03 Payment.

Compensation for raising utility facilities to grade based on the applicable bid item for each type of facility and type of adjustment, and whether single or double. Single shall mean leaving the facility in place until paving is complete and raising the grade thereafter. Double shall mean removing the facility prior to paving and reestablishing the facility at finish grade per specifications after paving. The unit price bid shall be considered full compensation for removing the facility, and storing and replacing it as applicable, protecting the facility at all times during the procedure and as specified, and resetting the facility at finish grade, including all materials, equipment and labor and incidentals.

20. COOPERATION
Attention is directed to Sections 7-1.14, “Cooperation” and 8-1.10, “Utility and Non-Highway Facilities” of the Standards Specifications.

21. SANITARY ARRANGEMENTS
The Contractor shall make provisions for and maintain in a sanitary manner at the work site all necessary and sanitary conveniences for the workmen, in accordance with the rules and regulations of the State Board of Health.

22. ACCESS

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The Contractor’s attention is directed to the existing pedestrian and vehicular access ways crossing the lines of work. These access ways shall not be closed unless an alternate access way is provided. The Contractor shall assume full responsibility for providing alternate access. The compensation for the work in this item shall be considered as included in the cost of the various contract items of work and additional compensation will be made therefore.

23. INSURANCE
The Contractor’s attention is directed to the amount of insurance as shown in the General Conditions 1-

48. 24. CONSTRUCTION CONFERENCE
The Contractor’s attention is directed to the preconstruction conference as stated in General Conditions 1-

54. 25. EXISTING IMPROVEMENTS
The Contractor shall make every effort to protect all existing improvements and facilities from damage during the progress of his work. No trees, planters, walks, shrubs, signs, fences or other such facilities shall be removed except as shown or called for on the plans or unless specifically authorized in writing by the Engineer. The Contractor shall be held responsible for the care and preservation of the present premises and of adjacent premises and coterminous property. Any parts of them which are injured, damaged or disturbed because of his work shall be repaired, replaced or cleaned by him at his expense.

The Contractor shall apply either water and/or dust palliative for the alleviation or prevention of dust nuisance and damage originating from the Contractor’s operation.

26. MAINTENANCE CALL-OUTS
Any expense for maintenance call-outs by the City’s traffic signal maintenance personnel resulting from the Contractor’s operations and construction of this project shall be borne by the Contractor.

27. WARRANTIES, GUARANTEES AND INSTRUCTION SHEETS:

Warranties, guarantees and instruction sheets shall conform to the provisions in Section 86-1.04, “Warranties, Guarantees and Instruction Sheets” of the State Standard Specifications and these Special Provisions.

Completed work shall be guaranteed to the City by the Contractor for a period of not less than twelve (12) months following the date of acceptance thereof. Where Contractor-installed equipment and/or facilities are damaged prior to final acceptance by the City, the Contractor shall repair or replace such equipment and/or facilities at his/her own expense.

28. STORAGE OF MATERIAL.

The site of work shall be maintained clean at all times. Excavated material shall be loaded directly and hauled away from job site for disposal at the Contractor’s expense. The Contractor shall not store material

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2026 STREETS OVERLAY PROJECT
on job site. He shall store material at a site convenient to the job, off public ways, arranged and paid as a part of his Contract work.

29. GRINDING MATERIALS
All grinding materials shall be removed by the contractor and hauled away from job site for disposal at the Contractor’s expense. The cost for removal and relocation must be included in the price bid item cold milling of Base Bid and no additional cost will be allowed therefore.

30. VERIFYING, MARKING, AND RE-ESTABLISHING SURVEY MONUMENTATION Prior to work, the Contractor shall locate all survey monuments and property corners within the areas of demolition, concrete and paving. Survey ties shall be performed to allow the Contractor to reset/reestablish survey monumentation and/or property markers. All work shall be done by a licensed Surveyor or Civil Engineer authorized to practice Land Surveying in the State of California. Contractor shall submit to the Imperial County. Contractor shall also submit City of El Centro form ED-006 Certificate of Monument preservation completed prior to construction acitivies.

31. CONSTRUCTION STAKING
The Contractor shall perform all construction staking necessary for the Contract. This includes providing surveying for pre and post paving operations. The Contractor shall maintain existing grade throughout and ensure cross slopes are at least two (2) percent unless otherwise directed by the Engineer or his representative.

32. CONSTRUCTION WATER SUPPLY
The Contractor may use City water at the current rate through a water meter to be provided by the City contingent upon a refundable deposit of five hundred dollars ($500).

33. MAINTAINING EXISTING AND TEMPORARY ELECTRICAL SYSTEMS Traffic signal system shutdown, if required, shall be limited to periods between the hours of nine (9:00) AM and three thirty (3:30) PM, Monday through Friday. Contractor shall coordinate with the City of El Centro for City owned intersections, and shall coordinate with Caltrans for State-Owned intersections.

The Contractor shall place “STOP AHEAD” and “STOP” signs shall be furnished by the Contractor and shall conform to the provisions in Section 12-3.06, “Construction Area Signs,” of the Standard Specifications, except that the base material for the signs shall not be plywood.

Two “STOP AHEAD” signs and two “STOP” signs shall be placed for each direction of traffic. Location of the signs shall be as directed by the City Traffic Engineer.

Full compensation for furnishing, installing, maintaining, and removing temporary “STOP AHEAD” and “STOP” signs, and for covering signs not in use, shall be considered as included in the contract lump sum price paid for the signal item involved and not additional compensation will be allowed therefore.

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All existing signal indications, pedestrian push buttons, detectors, and control equipment shall be maintained in operation at all times, except during shutdown hours as specified above.

Costs for overhead temporary wiring, which may be required to keep the signals in operation during intersection re-wiring, shall be considered as a part of the lump sum bid price for each intersection.

34. CLEANUP OF SITE.

During the progress of the work, the Contractor shall keep the premises occupied by him in a neat, orderly and sanitary condition. He shall dispose of refuse as often as directed, or as may be necessary so that at no time shall there be any accumulation of rubbish, excavated material or equipment that will interfere with convenience or operation of materials so as to provide the minimum obstruction to traffic at all times.

Dirt, dust, mud, native earth material, sand, gravel, asphalt debris, cement debris and all other construction-related material shall be swept from the street areas in the vicinity of the project sites on a daily basis. The material shall be removed and disposed of by the Contractor. The clean-up wok shall be incidental to respective mobilization bid item and shall be included in the lump sum cost.

35. MOBILIZATION
Mobilization shall consist of: submittals, project meetings, administration, performance bond, payment bond, bid bond, insurance, freight, taxes, safety requirements, Caltrans Encroachment Double Permit, notification and signage of work to community, El Centro Business License, project identity signs, County of Imperial Air Pollution Control District requirements, As-Built Drawings.

36. Encroachment Double Permit
Project improvements are located, just adjacent, to the California State Department of Transportation (Caltrans) Right of Way. It is currently estimated; the Contractor will be required to submit a permit inspection deposit fee of $2,000 at the time the Contractor obtains the double encroachment permit. Contractor shall consider this estimated fee under the appropriate mobilization bid item where Caltrans involvement will be necessary. Contractor shall obtain the Caltrans Double Encroachment Permit and pay all associated encroachment permit fees after the Notice to Proceed is issued to the contractor. The final Encroachment Permit fee will be determined at the conclusion of the project. If the final Encroachment Permit fee is less than $2,000 then a negative change order will be processed for the difference between the original estimated fee and the actual Encroachment Permit Fee. If the final Encroachment Permit fee is greater than $2,000 then a positive change order will be processed compensating the Contractor for the difference between the actual Encroachment Permit Fee and the original estimated fee. In the case where the Contract Documents conflict with Caltrans requirements, the most stringent shall apply.

37. El Centro Business License
The Contractor and Subcontractors performing work on the project shall obtain a city business license from the City of El Centro at 1275 W. Main St. El Centro, CA 92243, telephone number (760) 337-4508. The Contractor and Subcontractors shall contact the Community Development Department regarding the cost of the license and include the business license cost in the proposal.

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38. Air Pollution Control District Requirements
The contractor shall be required to comply with the County of Imperial Air Pollution Control District’s requirements. County of Imperial Air Pollution Control District forms, requirements and information are available via the internet at https://apcd.imperialcounty.org/. The contractor shall be responsible for completing, submitting, and implementing the construction notification form and dust control plan as required. The contractor shall be responsible for all necessary air pollution requirements. All costs associated with air pollution mitigation shall be included in the respective Mobilization Lump Sum (LS) Item.

39. BMP Inspection and Maintenance
Inspection and maintenance are required for all BMPs (run-off control, and sediment control) to maintain effectiveness for reducing or eliminating the amount of sediment that leaves a site for the duration of the project. All cost associated with BMP Inspection and Maintenance shall be included in the respective Erosion Control Lump Sum (LS) item.

40. Material Delivery Tickets
The Contractor shall provide material delivery tickets to the City for Class II Base, P.C.C.

Concrete, Asphalt Concrete, and similar items delivered to the project site. The material tickets shall be presented to the City immediately upon the material item arriving at the project site.

END OF SPECIAL PROVISIONS

City Council of the City of El Centro
1275 W. Main Street
El Centro, CA 92243

SUBMITTED
ACTION ITEM (ID # 2026-14)
Item: 10.

Meeting: 1/20/2026 3:30 PM
Department: City Manager
Category: Action Item
Prepared by: Cindy De Zilwa,
Management Assistant
Department Head: Robert Sawyer
DOC ID: 2026-14
Adopt Resolution 26- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL

CENTRO, CALIFORNIA, APPROVING AN AGREEMENT BETWEEN THE CITY OF EL

CENTRO AND BURKE, WILLIAMS, & SORENSEN, LLP FOR CITY ATTORNEY SERVICES.

CITY MANAGER'S RECOMMENDATION:

Adopt Resolution 26- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL

CENTRO, CALIFORNIA, APPROVING AN AGREEMENT BETWEEN THE CITY OF EL

CENTRO AND BURKE, WILLIAMS, & SORENSEN, LLP FOR CITY ATTORNEY SERVICES.

FISCAL IMPACT:

The City negotiated hourly rates for General Legal Services at $385 and Special Legal Services at $485. There is sufficient funds in the adopted Fiscal Year 2026-27 budget to cover the anticipated legal services.

STRATEGIC PLANNING PROGRAM 2022-2027 RELATION:

DUE DILIGENCE CHECK FOR CONTRACTORS/CONSULTANTS: DID THE

DEPARTMENT VERIFY CURRENT EL CENTRO BUSINESS LICENSE,
CONTRACTOR'S LICENSE, REFERENCE CHECKS, INSURANCE, ETC.:

N/A
BACKGROUND:

Burke, Williams & Sorensen, LLP (Burke) is a full-service public law firm with multiple offices in California, including San Diego and Riverside. Burke was founded in 1927 and represents over 200 local governmental entities, including serving as City/Town Attorney for 42 cities throughout the state.

Burke has the expertise and resources to effectively represent the City as its City Attorney.

DISCUSSION:

Burke has proposed Joanna Smith Hoff to serve as City Attorney. She has served public agency clients for 20 years, leading to expertise in local government laws, real property, land use and water law, and environmental laws, including the California Environmental Quality Act (CEQA), the National Environmental Policy Act (NEPA), and state and federal Endangered Species Acts.

She will be supported by the firm's Public Law group, with over 100 specialists in any area that the City may need, including the Brown Act, Public Records Act, conflicts of interest, elections law, public contracting, land use and environmental law, real estate, housing, labor and personnel, litigation, code enforcement, and utilities (e.g., rates).

CONCLUSION:

Adopt Resolution 26- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL

CENTRO, CALIFORNIA, APPROVING AN AGREEMENT BETWEEN THE CITY OF EL

CENTRO AND BURKE, WILLIAMS, & SORENSEN, LLP FOR CITY ATTORNEY SERVICES.

ATTACHMENTS:

1. Resolution No 26-

2. Legal Services Agreement - City of El Centro (City Attorney)

01/2026/cdz/A26-0009/Reso/LegalServicesBurkeWilliamsSorensen RESOLUTION 26-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

EL CENTRO, CALIFORNIA, APPROVING AN AGREEMENT

BETWEEN THE CITY OF EL CENTRO AND BURKE,

WILLIAMS & SORENSEN, LLP FOR CITY ATTORNEY

SERVICES
WHEREAS, the City of El Centro (“City) is in need of City Attorney services; and WHEREAS, Burke, Williams, & Sorensen, LLP (“Client”) is a full-service public law firm with the expertise to serve the City as its City Attorney; and WHEREAS, an agreement for legal services with Burke, William & Sorensen LLP is needed to provide City Attorney Services.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF EL CENTRO, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:

1. That the above recitations are true, correct and hereby adopted.

2. That the agreement with Burke, Williams & Sorensen LLP for City Attorney Services is approved.

3. That the Mayor and/or City Manager is authorized to sign an Agreement with Burke, Williams & Sorensen, LLP.

PASSED AND ADOPTED at a regular meeting of the City Council of the City of El Centro, California, held on the day of , 2026.

City of El Centro
By:______________________________
Mike Crankshaw, Mayor
ATTEST:

By __________________________
Norma Wyles, City Clerk

01/2026/cdz/A26-0009/Reso/LegalServicesBurkeWilliamsSorensen

APPROVED AS TO FORM
Office of the City Attorney
By _______________________________
Joanna Hoff, City Attorney

STATE OF CALIFORNIA )
COUNTY OF IMPERIAL ) ss

CIYT OF EL CENTRO )
I, Norma Wyles, City Clerk of the City of El Centro, California, do hereby certify that the foregoing Resolution No. 26- was duly and regularly adopted at a regular meeting of the City Council of the City of El Centro, California held on the day of , 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAINED:

By:________________________
Norma Wyles, City Clerk

4906-0880-9096 v1
Direct No.: (951) 801-6625
[email protected]
Los Angeles – Inland Empire – Marin County – Oakland – Orange County – Palm Desert – San Diego – San Francisco – Silicon Valley – Ventura County 444 South Flower Street - 40th Floor
Los Angeles, California 90071-2942
voice 213.236.0600 - fax 213.236.2700
www.bwslaw.com
January 14, 2026
Robert Sawyer, City Manager
City of El Centro
[email protected]
Re: Retainer Agreement for City Attorney Legal Services Dear Mr. Sawyer:

We are pleased to represent City of El Centro with respect to the matters described in this Agreement. The following sets forth the terms pursuant to which BURKE, WILLIAMS & SORENSEN, LLP (“Burke”) and City of El Centro (“Client”) agree that Burke will provide legal services to Client as City Attorney. The hallmark of any productive professional relationship is effective communication, and we would invite you to contact us at any time during or after our representation with regard to any questions you may have associated with our representation or the matters described herein.

1. CONDITIONS. This Agreement will not take effect, and Burke will have no obligation to provide legal services, until Client returns a signed copy of this Agreement.

The effective date of this Agreement will be January 20, 2026.

2. SCOPE OF SERVICES. Client hires Burke to provide as needed legal services in the matters set forth in Attachment “A” to this Agreement. No representation outside of the matters set forth in Attachment “A” to this Agreement shall be provided by Burke to Client. No representation of any directors, officers, employees, shareholders, or any other persons or entities affiliated with Client shall be provided unless such representation is expressly included in Attachment “A” to this Agreement. Burke will provide those legal services reasonably required to represent Client. Burke will take reasonable steps to keep Client informed of progress and to respond to Client’s inquiries.

If a court action is filed, Burke will represent Client through trial and post-trial motions.

This Agreement does not cover representation on appeal or in execution proceedings after judgment. Separate arrangements must be agreed to for those services. Services in any matter not described above will require a separate written agreement or a written modification to this Agreement.

Robert Sawyer, City Manager
January 14, 2026

4906-0880-9096 v1

3. CLIENT’S DUTIES. Client agrees to be truthful with Burke, to cooperate, to keep Burke informed of any information or developments which may come to Client’s attention, to abide by this Agreement, to pay Burke’s bills on time, and to keep Burke advised of Client’s address, telephone number, and whereabouts. Client will assist Burke in providing necessary information and documents and will appear when necessary at legal proceedings.

4. CONFLICTS OF INTEREST. Before accepting representation of Client, Burke has undertaken reasonable and customary efforts to determine whether there are any potential conflicts of interest or adversity of positions between Client and any other person or entity that would bar Burke from representing Client in general or in any of the specific matters listed in Attachment “A”. Burke has reviewed this issue in accordance with the Rules of Professional Conduct adopted in California. Burke believes that those rules, rather than the rules of any other jurisdiction, are applicable to Client’s representation. Client’s execution and return of the enclosed copy of this letter represents an express agreement to the applicability of the Rules of Professional Conduct adopted in California to any and all representation arising under this Agreement.

5. LEGAL FEES AND BILLING PRACTICES. Client agrees to pay by the hour at Burke’s prevailing rates for all time spent on Client’s matter by Burke’s legal personnel. Current hourly rates for legal personnel are set forth in Attachment “B” to this Agreement.

Burke’s rates are subject to change on 30 days’ written notice to Client. Rates shall automatically increase annually on July 1 of each year as set forth in Attachment “B” to this Agreement. If Client declines to pay increased rates, Burke will have the right to withdraw as attorney for Client.

The time charged will include the time Burke spends on telephone calls relating to Client’s matter, including calls with Client, witnesses, opposing counsel or court personnel. The legal personnel assigned to Client’s matter may confer among themselves about the matter, as required and appropriate. When they do confer, each person will charge for the time expended, as long as the work done is reasonably necessary and not duplicative. Likewise, if more than one of the legal personnel attends a meeting, court hearing or other proceeding, each will charge for the time spent. Burke will charge for waiting time in court and elsewhere and for travel time, both local and outof-town.

Robert Sawyer, City Manager
January 14, 2026

4906-0880-9096 v1

6. COSTS AND OTHER CHARGES.
(a) Burke will incur various costs and expenses in performing as needed legal services under this Agreement. Client agrees to pay for all costs, disbursements and expenses in addition to the hourly fees. The costs and expenses commonly include:
service of process charges, filing fees, court and deposition reporters’ fees, jury fees, notary fees, deposition costs, long distance telephone charges, messenger and other delivery fees, postage, photocopying and other reproduction costs, travel costs including parking, mileage, transportation, meals and hotel costs, investigation expenses, consultants’ fees, expert witness, professional, mediator, arbitrator and/or special master fees, unavoidable administrative staff and secretarial overtime, and other similar items.

Except for the items listed below, all costs and expenses will be charged at Burke’s cost.

In-office photocopying/page: $ .20
In-office color photocopying/page $ 1.00
Facsimile charges/page: $ 1.00
Mileage/mile: $ .72.5 (per IRS notices)
(b) Out-of-town travel. Client agrees to pay transportation, meals, lodging and all other costs of any necessary out-of-town travel by Burke’s personnel. Client will also be charged the hourly rates for the time legal personnel spend traveling. (c) Experts, Consultants and Investigators. To aid in the preparation or presentation of Client’s case, it may become necessary to hire expert witnesses, consultants, investigators, and outsourced support services. Client agrees to pay such fees and charges. Burke will select any expert witnesses, consultants, investigators or support services to be hired, and Client will be informed of persons chosen and their charges.

Additionally, Client understands that if the matter proceeds to court action or arbitration, Client may be required to pay fees and/or costs to other parties in the action.

Any such payment will be entirely the responsibility of Client.

7. BILLING STATEMENTS. Burke will send Client periodic statements for fees and costs incurred. Each statement will be payable within 30 days of its mailing date. Client may request a statement at intervals of less than 30 days. If Client so requests, Burke will provide one within 10 days. The statements shall include the amount,

Robert Sawyer, City Manager
January 14, 2026

4906-0880-9096 v1
rate, basis of calculation or other method of determination of the fees and costs, which costs will be clearly identified by item and amount.

8. INTEREST CHARGES. If a billing statement is not paid by its due date, interest will be charged on the principal balance (fees, costs, and disbursements) shown on the statement. Interest will be calculated by multiplying the unpaid balance by the periodic rate of .833% per month (TEN PERCENT [10%] ANNUAL PERCENTAGE RATE). The unpaid balance will bear interest from the date of the invoice until paid.

9. DISCHARGE AND WITHDRAWAL. Client may discharge Burke at any time. Burke may withdraw with Client’s consent or for good cause. Good cause includes Client’s breach of this Agreement, refusal to cooperate or to follow Burke’s advice on a material matter or any fact or circumstance that would render Burke’s continuing representation unlawful or unethical. When Burke’s services conclude, all unpaid charges will immediately become due and payable. When services conclude, Burke will, upon Client’s request, deliver Client’s file, and property in Burke’s possession, whether or not Client has paid for all services.

10. DOCUMENT RETENTION POLICY. Client is entitled upon written request to any files in Burke’s possession relating to the legal services performed by Burke for Client, excluding Burke’s internal accounting records and other documents not reasonably necessary to Client’s representation, subject to Burke’s right to make copies of any files withdrawn by Client. Once a matter is concluded, Burke will close the file, and Client will receive notice thereof. Client’s physical files may be sent to storage offsite, and thereafter there may be an administrative cost for retrieving them from storage. Thus, it is recommended that Client request the return of a file at the conclusion of a matter.

Under Burke’s document retention policy, Burke normally destroys files five (5) years after a matter is closed, unless other arrangements are made with Client.

All client-supplied materials and all attorney end product (referred to generally as “client material”) are the property of Client. Attorney end product includes, for example, finalized contracts, pleadings, and trust documents. Attorney work product is the property of Burke. Attorney work product includes, for example, drafts, notes, internal memoranda and electronic files, and attorney representation and administration materials, including attorney-client correspondence and conflicts materials.

After the close of a matter, Burke will notify Client of any client materials that remain in Burke’s possession. Client will be invited to retrieve these client materials within 45 days of notice, or Client may direct Burke to forward the client materials to Client, at

Robert Sawyer, City Manager
January 14, 2026

4906-0880-9096 v1
Client’s expense. If within 45 days of this notice Client fails to retrieve the client materials or request Burke to forward them, Client authorizes Burke to destroy the client materials.

After the 45-day period, Burke will, consistent with all applicable rules of professional conduct, use its discretion as to the retention or destruction of all attorney work product and any client materials that remain with Burke.

11. TECHNOLOGY. At its discretion, unless otherwise stated, Burke will employ technology to facilitate electronic discovery. This may include scanning of paper documents, culling of documents, converting electronically stored information into a format suitable for review, the usage of electronic review software, etc. Applicable associated costs, including electronic storage and transfer costs, will be billed to Client.

Burke uses artificial intelligence tools known as Co-Counsel 1.0 and Co-Counsel

2.0 in the representation of Client. The tools do not permit the vendor (Thomson Reuters) to acquire ownership or control or to use information for the vendor’s purposes outside the protection of the attorney-client privilege or the attorney work product doctrine. Burke continues to maintain control over Client’s confidential information during the use of the tools mentioned here. Burke’s AI policy does not authorize the use of any other generative or agentic AI.

12. DISCLAIMER OF GUARANTEE AND ESTIMATES. Nothing in this Agreement and nothing in Burke’s statements to Client will be construed as a promise or guarantee about the outcome of the matter. Burke makes no such promises or guarantees. Burke’s comments about the outcome of the matter are expressions of opinion only. Any estimate of fees given by Burke shall not be a guarantee. Actual fees may vary from estimates given.

13. MEDIATION/ARBITRATION; WAIVER OF JURY TRIAL. If a dispute arises out of or relating to any aspect of this Agreement between Client and Burke, or the breach thereof, and if the dispute cannot be settled through negotiation, Burke and Client agree to discuss in good faith the use of mediation before resorting to arbitration, litigation, or any other dispute resolution procedure. Nothing herein shall limit or otherwise affect your right under Sections 6200-6206 of the California Business and Professions Code to request arbitration of any fee dispute by an independent, impartial arbitrator or panel of arbitrators through a bar association program created solely to resolve fee disputes between lawyers and clients. However, should discussions, mediation or the non-binding arbitration provided through a local bar association program not resolve the dispute, the dispute shall be determined by binding arbitration before the American Arbitration Association under its then prevailing commercial arbitration rules, except that discovery

Robert Sawyer, City Manager
January 14, 2026

4906-0880-9096 v1
may be taken in that arbitration pursuant to the California Code of Civil Procedure. The claims or controversies subject to this provision shall include, without limitation, any claim of professional negligence or malpractice. The arbitration shall be held in Los Angeles, California, unless we mutually select another venue, and judgment may be entered upon the arbitrator’s award by any court having jurisdiction. Should you refuse or neglect to appear or participate in the arbitration proceedings, the arbitrator is empowered to decide the claim or controversy in accordance with the evidence presented. You should realize that by accepting the arbitration provision, YOU WILL WAIVE YOUR RIGHT TO A JURY

TRIAL AND THE RIGHT, EXCEPT UNDER LIMITED CIRCUMSTANCES, TO APPEAL THE ARBITRATOR’S DECISION.
________(Client Initial Here) _____(Burke Initial Here)

14. ATTORNEYS’ FEES CLAUSE. The prevailing party in any action or proceeding arising out of or to enforce any provision of this Agreement, with the exception of a fee arbitration or mediation under Business and Professions Code Sections 6200- 6206, will be awarded reasonable attorneys’ fees and costs incurred in that action or proceeding, or in the enforcement of any judgment or award rendered.

15. ENTIRE AGREEMENT. This Agreement contains the entire agreement of the parties. No other agreement, statement, or promise made on or before the effective date of this Agreement will be binding on the parties.

16. SEVERABILITY IN EVENT OF PARTIAL INVALIDITY. If any provision of this Agreement is held in whole or in part to be unenforceable for any reason, the remainder of that provision and of the entire Agreement will be severable and remain in effect.

17. MODIFICATION BY SUBSEQUENT AGREEMENT. This Agreement may be modified by subsequent agreement of the parties only by an instrument in writing signed by both of them, or an oral agreement only to the extent that the parties carry it out.

18. EFFECTIVE DATE. This Agreement will govern all legal services performed by Burke on behalf of Client commencing with the date Burke first performed services. The date at the beginning of this Agreement is for reference only. Even if this Agreement does not take effect, Client will be obligated to pay Burke the reasonable value of any services Burke may have performed for Client.

Robert Sawyer, City Manager
January 14, 2026

4906-0880-9096 v1

THE PARTIES HAVE READ AND UNDERSTOOD THE FOREGOING TERMS AND AGREE TO THEM AS OF THE DATE BURKE FIRST PROVIDED SERVICES. IF

MORE THAN ONE CLIENT SIGNS BELOW, EACH AGREES TO BE LIABLE, JOINTLY AND SEVERALLY, FOR ALL OBLIGATIONS UNDER THIS AGREEMENT. CLIENT SHALL RECEIVE A FULLY EXECUTED DUPLICATE OF THIS AGREEMENT.

DATED:_________________ CITY OF EL CENTRO
By:

Robert Sawyer, City Manager
1275 W Main Street
El Centro, CA 92243
Telephone: (760) 337-4540
DATED:_________________ BURKE, WILLIAMS & SORENSEN, LLP By:

Eric Vail, Partner and Chair of the
Public Law Practice Group
Enclosure: return copy
January 14, 2026

Robert Sawyer, City Manager
January 14, 2026

4906-0880-9096 v1
Attachment “A”

1. General City Services
General City Services are routine, customary legal services for normal operations of the City and include the following:
 Public Meetings, attendance and preparation for City Council and commission meetings. Others public meetings as requested.
 Office hours and attendance at Executive Team meetings and other meeting as requested.
 Code Enforcement/City Prosecutor:
o Advice on enforcement strategies.
o Draft demand letters, notice of violations and/or administrative citations. o Prosecution of all criminal or civil actions necessary and appropriate to enforce municipal ordinances.
 Contracts and Insurance.
o Preparation and review of standard form service contracts and purchase documents.
o Review of standard public works contracts.
o Provide advice re insurance coverage matters.
o Provide other standard forms and templates.
 Document Review. Review, approve, and prepare ordinances, resolutions, staff reports and other general legal document required by the City.  General City Support items.
o Routine real property acquisitions, easements, and dedications. o Legal opinions (except as related to bond or public financing). o Brown Act Compliance.
o Public Records Act Compliance.
o Political Reform Act / Conflict of Interest Laws compliance. o Election law (general in nature).

Robert Sawyer, City Manager
January 14, 2026

4906-0880-9096 v1
o Procedural issues and due process.
o Intergovernmental relations.
o Joint powers authority issues and relations.
o Assistance responding to Public Records Act requests. o Maintenance of Municipal Code.
 Land Use & Zoning.
o Legal research, review and recommendation.
o Interpretation of Zoning Code and/or General Plan language. o Assistance with Specific Plans.
 Legislation, monitor and provide updates on pending and current legislation and court decisions.
 Monitor and supervise activities of any special outside counsel retained by the City.  Other. Perform such other legal duties as may be required by the City Council or City Manager (except for Special Legal Service Matters described below).  Post-redevelopment and successor agency work.
 Render advice and assistance to City departments on personnel disciplinary and/or labor relations matters, review memoranda of understanding or other labor agreements, draft implementing legislation or pertinent documents and represent City on matters arising from memoranda of understanding or the City’s personnel rules.
 Research. Perform research and interpret laws, court decisions and other legal authorities.
 Trainings. Provide standard and routine trainings to City Council and City Staff.

2. Special Legal Services
Special Legal Services include those legal services of a non-routine nature or a routine task that, due to its complexity, requires additional analysis and research. Special services will include all services not included within the General Services, including the following:
 Affordable Housing and Successor Housing Agency

Robert Sawyer, City Manager
January 14, 2026

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o Drafting or review of affordable housing agreements with third parties or service providers.
 Assessment districts and CFD issues
 Complex economic development agreement, post-redevelopment incentive districts and programs.
 Complex public construction projects, bid disputes, protests, and suits.  Election disputes, including initiatives, recall, referendums, districting, election challenges, and qualification issues.
 Eminent Domain.
 Environmental matters.
o Review of any documents prepared to analyze a project’s environmental impacts pursuant to CEQA and NEPA.
 Formal administrative hearings.
o Represent the City in non-adversarial administrative proceedings, legislative hearings, and other intergovernmental hearings. o Represent the City, and its officers, agents, and employees in matters before state and federal administrative agencies (such as the Department of Industrial relations, Regional Water Quality Control Board, Department of Fair Employment and Housing, Equal Opportunity Commission, Worker’s Compensation Appeals Board, etc.)
 Fees, charges and taxes (Mitigation Fee Act, Prop 218).  Franchising.
o Cable television.
o Solid waste.
 Housing laws.
 Litigation.
 Matters that are complex, novel or unusual.
 Non-routine land use and development matters including general or specific plan updates, local coastal plan amendment, and development agreements.  Non-routine negotiation matters.

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January 14, 2026

4906-0880-9096 v1
 Prevailing wage disputes.
 Telecommunications.
 Toxic substances matters (CERCLA, RCRA).
 Water rights, wastewater, storm water, and water quality issues.

Robert Sawyer, City Manager
January 14, 2026

4906-0880-9096 v1
Attachment “B”
Rates for Attorneys and other timekeepers through December 31, 2026:
(a) General Legal Services Rates
Staffing Hourly Rate
Attorneys $385
Paralegals $225
(b) Special Legal Services Rates
Staffing Hourly Rate
Attorneys $485
Paralegals $235
Effective each January 1, the foregoing base rates shall be increased based on the U.S. Department of Labor Bureau of Labor Statistics Los Angeles-Riverside-Orange County Consumer Price Index-All Urban Consumers (“CPI-U”), using the CPI-U for each prior October as the base and the value to escalate the hourly rates in the ratio of the most recent October CPI-U value, rounded up to the nearest $10 increment.

The U.S. Dept. of Labor Bureau of Labor Statistics (BLS) website will be the source of the data utilized (if the URL is changed, the parties shall agree on the replacement web page to be as close as reasonably possible to the page detailed herein):
http://data.bls.gov/PDQ/servlet/SurveyOutputServlet?data_tool=dropmap&series_id=CUURA421SA0,CUUSA421SA0

City Council of the City of El Centro
1275 W. Main Street
El Centro, CA 92243

SUBMITTED
ACTION ITEM (ID # 2025-437)
Item: 11.

Meeting: 1/20/2026 3:30 PM
Department: Community Services
Category: Presentation
Prepared by: Adriana Nava,
Community Services Director
Department Head: Adriana Nava
DOC ID: 2025-437
Presentation and Overview of Proposed Fiber Internet Services by Vero Fiber CITY MANAGER'S RECOMMENDATION:

FISCAL IMPACT:

STRATEGIC PLANNING PROGRAM 2022-2027 RELATION:

DUE DILIGENCE CHECK FOR CONTRACTORS/CONSULTANTS: DID THE

DEPARTMENT VERIFY CURRENT EL CENTRO BUSINESS LICENSE,
CONTRACTOR'S LICENSE, REFERENCE CHECKS, INSURANCE, ETC.:

BACKGROUND:

DISCUSSION:

CONCLUSION:

ATTACHMENTS:

None

City Council of the City of El Centro
1275 W. Main Street
El Centro, CA 92243

SUBMITTED
ACTION ITEM (ID # 2025-395)
Item: 12.

Meeting: 1/20/2026 3:30 PM
Department: Community Services
Category: Resolution
Prepared by: Clara Obeso, Comm.

Services Speciliast
Department Head: Adriana Nava
DOC ID: 2025-395
Updated Home Investment Partnership Program (HOME) Program Guidelines.

CITY MANAGER'S RECOMMENDATION:

Approve Resolution No. 26- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

EL CENTRO ADOPTING THE UPDATED HOME INVESTMENT PARTNERSHIPS

PROGRAM (HOME) OWNER-OCCUPIED REHABILITATION PROGRAM GUIDELINES FISCAL IMPACT:

There is no fiscal impact on the City's general fund. Program activities and administrative costs will be funded through a $400,000 grant received from the HOME Grant Program.

STRATEGIC PLANNING PROGRAM 2022-2027 RELATION:

Financial & Governance Stability & Sustainability
Community Health, Safety & Welfare
DUE DILIGENCE CHECK FOR CONTRACTORS/CONSULTANTS: DID THE

DEPARTMENT VERIFY CURRENT EL CENTRO BUSINESS LICENSE,
CONTRACTOR'S LICENSE, REFERENCE CHECKS, INSURANCE, ETC.:

N/A
BACKGROUND:

For more than twenty-five years, the City’s Economic Development Division has periodically administered a HOME-funded owner-occupied housing rehabilitation program serving low-income households. The program provides eligible homeowners with loan assistance to rehabilitate or reconstruct their single-family residences.

On December 1, 2021, the California Department of Housing and Community Development (HCD) released a Notice of Funding Availability (NOFA) under the HOME Program. The City submitted a $400,000 application in March 2022 and, in July 2022, received notice that the full amount had been awarded. The City has since received multiple program inquiries and completed applications from eligible households, and staff anticipates utilizing the full $400,000 allocation based on current demand.

DISCUSSION:

The current HOME Owner-Occupied Rehabilitation Program Guidelines were approved by the City Council in 2018 and have not been updated since that time. HCD regulations require participating jurisdictions to adopt written policies and procedures governing the use, administration, and monitoring of HOME funds to ensure compliance with federal requirements. Staff has updated the HOME guidelines, which have also been reviewed and approved by HCD, to reflect current regulations, updated federal guidance, and best practices in program administration. Adoption of the updated guidelines will ensure consistent and compliant administration of HOME-funded rehabilitation activities.

The Guidelines are attached for consideration. It is important to underscore that, because the funding source is federal, there is limited flexibility to revise core program requirements. The information below provides a summary of the key program provisions:

Program Purpose & Overview
• Program provides deferred loans to income-qualified owner-occupied households for home repairs that address health, safety, code violations, and habitability.

Eligibility
• Home must be owner-occupied and located within City limits. • Household income must be less than or equal to 80 percent of the Area Median Income based on HCD annual income limits.
• Applicants must provide documentation and maintain the home as their primary residence for the loan term.

Loan and Grant Structure
• Assistance provided primarily as 0% deferred loans, payable only when the home is sold, transferred, or no longer occupied by the owner.
• Program allows grants for emergency repairs and accessibility modifications, relocated, and required project costs.
• Maximum loan amounts vary by funding source and cannot exceed afterrehabilitation value limits.

Application and Selection Process
• First-come, first-served waiting list.
• Requires a completed application, income verification, title review, and inspection. • Work is competitively bid, and the City oversees scopes, cost reasonableness, and contractor eligibility.

Eligible Construction Activities
• Priority categories include:

1. Health and Safety Repairs

2. Code Compliance

3. Lead paint hazard evaluation/remediation

4. Rehabilitation/reconstruction when needed
Contracting Requirements
• Licensed and insured contractors only; HUD debarment checks required. • Homeowners may solicit bids, but City verifies qualifications and manages workflow.

• Contractors may be suspended/removed for misconduct.

Monitoring and Compliance
• City conducts jobsite inspections and approves payments through completion. • Recipients must provide annual proof of occupancy, homeowner's insurance, and property tax status.
• Loans are due if the homeowner moves, rents the home (with limited exceptions), or violates program terms.

Appeals and Disputes
• Applicants may appeal eligibility or decisions through the Loan Review Committee (Finance Director, James Garcia (Realtor, Economic Development Manager), City Council, and ultimately HCD.
• Construction contract disputes use binding arbitration.

CONCLUSION:

Staff respectfully requests the approval of the updated HOME program guidelines by approving Resolution No. 26- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

EL CENTRO ADOPTING THE UPDATED HOME INVESTMENT PARTNERSHIPS

PROGRAM (HOME) OWNER-OCCUPIED REHABILITATION PROGRAM GUIDELINES ATTACHMENTS:

1. Resolution FINAL

2. HOME_OOR Program Guidelines_FINAL

12/2025/cdz/A25-0203/Reso/HOMEProgGuidelinesUpdated
RESOLUTION NO. 26-

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL CENTRO

ADOPTING THE UPDATED HOME INVESTMENT PARTNERSHIPS

PROGRAM (HOME) OWNER-OCCUPIED REHABILITATION

PROGRAM GUIDELINES
WHEREAS, the current HOME Investment Partnerships Program (HOME) owner-occupied rehabilitation program guidelines were approved by the City Council in 2018 and have not been updated since; and
WHEREAS, the California Department of Housing and Community Development (HCD) has provided the City of El Centro with updated owner-occupied rehabilitation program guidelines; and WHEREAS, HCD regulations require participating jurisdictions to adopt written policies and procedures governing the use, administration, and monitoring of HOME funds to ensure compliance with federal requirements; and
WHEREAS, City staff have reviewed and updated the City’s HOME Program Guidelines to reflect current federal regulations, local policies, project monitoring, and program administration practices, and the update has been reviewed by HCD; and
WHEREAS, the updated HOME Program Guidelines will serve as the governing document for applicant eligibility, project selection, funding requirements, long-term affordability, compliance monitoring, and other program operations; and
WHEREAS, the City Council finds it in the best interest of the City and its residents to adopt the updated HOME Program Guidelines to ensure consistent, transparent, and compliant administration of the HOME Program.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF EL CENTRO, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:

1. That the foregoing is true, correct, and hereby adopted.

2. That the City Manager or designee, is authorized to implement, administer, and enforce the HOME Program Guidelines, including making technical amendments as required by HCD regulations, provided such amendments do not materially change program intent or funding allocations.

3. Any changes or corrections to the Program Guidelines required by HCD shall be included in the Guidelines without requiring re-approval by the City Council.

4. Such Program Guidelines shall apply to all existing loans as well as those made on or after the date of adoption of this Resolution.

12/2025/cdz/A25-0203/Reso/HOMEProgGuidelinesUpdated
PASSED AND ADOPTED at a regular meeting of the City Council of the City of El Centro, California, held on the day of , 2026.

CITY OF EL CENTRO
By ______________________
Mike Crankshaw, Mayor
ATTEST:

By __________________________
Norma Wyles, City Clerk

APPROVED AS TO FORM
Office of the City Attorney
By __________________________
Joanna Hoff, City Attorney

STATE OF CALIFORNIA )
COUNTY OF IMPERIAL ) ss

CIYT OF EL CENTRO )
I, Norma Wyles, City Clerk of the City of El Centro, California, do hereby certify that the foregoing Resolution No. 26- was duly and regularly adopted at a regular meeting of the City Council of the City of El Centro, California held on the day of , 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAINED:

By _________________________
Norma Wyles, City Clerk

City of El Centro Housing Rehabilitation Program Guidelines 1 CITY OF EL CENTRO

SINGLE-FAMILY HOUSING

REHABILITATION

ASSISTANCE PROGRAMS
(HOME, CDBG, CalHome)

PROGRAM DESIGN AND PROCESS

HCD Version August 9, 2024
CalHome Approved (date)
CDBG Approved (date)
HOME Approved (1/12/2026)

City of El Centro Housing Rehabilitation Program Guidelines 2 City of El Centro

HOUSING REHABILITATION

PROGRAM GUIDELINES

TABLE OF CONTENTS

1.0. GENERAL

1.1. PROGRAM OUTREACH AND MARKETING

1.2. APPLICATION PROCESS AND SELECTION

1.3. LOAN PROCESS

1.4. CONFLICT OF INTEREST REQUIREMENTS

2.0. APPLICANT QUALIFICATIONS

2.1. INCOME LIMITS

2.2. INCOME QUALIFICATION CRITERIA

2.3. HOMEOWNER ELIGIBILITY & RESIDENCY REQUIREMENTS

3.0. PROPERTY ELIGIBLITY

3.1. CONDITIONS

3.2. ANTI-DISPLACEMENT POLICY AND RELOCATION ASSISTANCE

3.3. NOTIFICATIONS AND DISCLOSURES

3.4. ENVIROMENTAL REVIEW

4.0. THE PROGRAM LOAN

4.1. MAXIMUM AMOUNT OF PROGRAM ASSISTANCE

4.2. AFFORDABILITY PARAMETERS FOR HOMEOWNERS

4.3. RATES AND TERMS

4.4. GRANTS

4.5. APPRAISAL

4.6. INSURANCE

4.7. LOAN SECURITY

5.0. PROGRAM LOAN SERVICING AND MAINTENANCE

5.1. PAYMENTS ARE VOLUNTARY

5.2. RECEIVING LOAN REPAYMENTS

5.3. LOAN SERVICING POLICIES AND PROCEDURES

5.4. LOAN MONITORING PROCEDURES

5.5. DEFAULT AND FORECLOSURE

5.6. SUBORDINATIONS

6.0. CONSTRUCTION

6.1. STANDARDS

6.2. ELIGIBLE CONSTRUCTION COSTS

6.3. ELIGIBLE PROJECT COSTS

6.4. REPAIR CALLBACKS

7.0. EXCEPTIONS AND SPECIAL CIRCUMSTANCES

7.1. AMENDMENTS

7.2. EXCEPTIONS

8.0. DISPUTE RESOLUTION AND APPEALS PROCEDURES

8.1. PROGRAM COMPLAINT AND APPEAL PROCEDURE

8.2. GRIEVANCES BETWEEN PARTICIPANTS AND CONSTRUCTION

CONTRACTOR

City of El Centro Housing Rehabilitation Program Guidelines 3 City of El Centro

HOUSING REHABILITATION

PROGRAM GUIDELINES

ATTACHMENTS TABLE OF CONTENTS
ATTACHMENT A: 24 CFR PART 5 ANNUAL INCOME INCLUSIONS AND EXCLUSIONS – FOR CDBG & HOME
ATTACHMENT A-1: TITLE 25 SECTION 6914 GROSS INCOME INCLUSIONS – FOR

CALHOME
ATTACHMENT B: ANNUAL INCOME NET FAMILY ASSET INCLUSIONS AND EXCLUSIONS – FOR CDBG & HOME
ATTACHMENT B-1:TITLE 25 SECTION 6914 GROSS INCOME EXCLUSIONS – FOR

CALHOME
ATTACHMENT C: HOMEOWNERSHIP VALUE LIMITS; HOME PER-UNIT SUBSIDY LIMITS; CURRENT INCOME LIMITS; BEDROOM & BATHROOM

ADDITION STANDARDS
ATTACHMENT D: MARKETING PLAN
ATTACHMENT E: RESIDENTIAL ANTIDISPLACEMENT AND RELOCATION

ASSISTANCE PLAN
ATTACHMENT F: LOAN SERVICING POLICIES AND PROCEDURES
ATTACHMENT G: FORECLOSURE POLICY
ATTACHMENT H: CERTIFICATION OF OCCUPANCY
ATTACHMENT I: LEAD-BASED PAINT NOTICE OF PRESUMPTION AND HAZARD

REDUCTION FORM

City of El Centro Housing Rehabilitation Program Guidelines 4 CITY OF EL CENTRO

HOUSING REHABILITATION

PROGRAM GUIDELINES
Adopted date

1.0. GENERAL
The above-named entity, hereinafter referred to as the “Sponsor”, has entered into a contractual relationship with the California Department of Housing and Community Development (“HCD”) to administer one or more HCD-funded housing rehabilitation programs. The rehabilitation program described herein and hereinafter referred to as the “Program” is designed to provide assistance to eligible homeowners for correction of health and safety items, as well as code violations, located within the Program’s eligible area, as described in Section 3.0. The Program provides this assistance in the form of deferred payment loans used to finance the cost of necessary repairs that will provide the homeowner with a healthy, safe, sanitary and code compliant home, referred to herein as “housing unit”. The Program will be administered by City of El Centro, hereinafter referred to as the “Program Operator”.

1.1. PROGRAM OUTREACH AND MARKETING
All outreach efforts will be made in accordance with state and federal fair lending regulations to ensure nondiscriminatory treatment, outreach and access to the Program.

No person shall, on the grounds of age, ancestry, color, creed, physical or mental disability or handicap, marital or familial status, medical condition, national origin, race, religion, gender or sexual orientation, be excluded, denied benefits or subjected to discrimination under the Program. The Sponsor will ensure that all persons, including those qualified individuals with handicaps, have access to the Program.

A. The Fair Housing Lender and Accessibility logos will be placed on all outreach materials. Fair housing marketing actions will be based upon a characteristic analysis comparison (census data may be used) of the Program’s eligible area compared to the ethnicity of the population served by the Program (includes, separately, all applications given out and those receiving assistance) and an explanation of any underserved segments of the population. This information is used to show that protected classes (age, gender, ethnicity, race, and disability) are not being excluded from the Program. A Fair Housing Marketing Plan can be found as Attachment D.

Flyers or other outreach materials, in English and any other language that is the primary language of a significant portion of the area residents, will be widely distributed in the Program-eligible area and will be provided to any local social service agencies. The Program may sponsor homeownership education classes to help educate homeowners about credit, budgeting, predatory lending, foreclosure prevention and home maintenance, as well as future responsibilities.

B. Section 504 of the Rehabilitation Act of 1973 prohibits the exclusion of an otherwise qualified individual, solely by reason of disability, from participation under any program receiving Federal funds. The Program Sponsor will take appropriate steps to

City of El Centro Housing Rehabilitation Program Guidelines 5 ensure effective communication with disabled housing applicants, residents and members of the public.

1.2. APPLICATION PROCESS AND SELECTION
A. Waiting List/Homeowner Contact
The Sponsor will utilize a waiting list. In response to a homeowner’s request, the homeowner is placed on the waiting list. Homeowners are offered the opportunity to qualify for assistance by waiting list priority (a first-come, first served basis).

The Program Operator will contact homeowners by mail and/or by telephone to advise of funding availability. The homeowner has 30 days to complete and return the loan application and supporting documentation. Should a homeowner fail to respond to the initial contact for assistance or to provide any of the required documentation within the 30-day period, the homeowner’s name will be removed from the waiting list. If the homeowner desires assistance at a later time, he/she will be placed on the waiting list at that time.

Should the waiting list be exhausted, the Program will be marketed in accordance with the Sponsor’s Marketing Plan. See Attachment D.

B. Application/Interview
An application packet is provided to the homeowner for completion and submittal to the Program Operator, along with supporting documentation. An interview is scheduled with the applicant. The Program is fully explained; application forms and documentation are reviewed. Verifications are obtained for income, assets, employment, benefits, and mortgage. Title report and appraisals are also obtained.

If the Program Operator encounters material discrepancies and/or misrepresentations, and/or there are income, asset, household composition, or other important questions that can't be resolved, the Sponsor reserves the right to deny assistance to the household. In this case, the applicant may re-apply after six months have elapsed from the time of written assistance denial.

C. Household Selection
Households selected for participation in the Sponsor’s Housing Rehabilitation Program are those determined eligible upon completion of processes described in A. and B. above.

D. Initial Inspection/Work Write-Up/Estimate
Prospective units are inspected by the Program Operator, a certified housing inspector, or a Sponsor representative to determine eligibility and acceptability of properties for participation in the Program.

City of El Centro Housing Rehabilitation Program Guidelines 6 If the home is a pre-1978 unit, the initial inspection will also include paint testing by a certified Lead-Based Paint (LBP) inspector/assessor or presumption of LBP.

Code deficiencies will be corrected and if presumption is used or lead hazards are found they will be properly treated according to HUD regulations (Section 6.1.E & F) and cleared by a certified LBP inspector/assessor. Note: CalHome-funded projects do not require LBP compliance. CDBG projects shall refer to Chapter 20, Lead-Based Paint Requirements for guidance in the CDBG Grant Management Manual.

Measurements and observations are noted about the property, including special conditions with potential cost consequences (dilapidated outbuildings, absence of curb and gutter when required by code, etc.). A floor plan and site plan, as needed, are drawn for the home and property, including all appurtenances.

Findings are noted on an inspection form, and later used by the Program Operator to prepare the work write-up. Estimated costs are determined by the Program Operator who has years of experience in the building industry, and in reviewing contractor bids and verifying costs with materials suppliers. The homeowner reviews the completed work write-up and cost estimate, and the approved writeup is incorporated into bid documents.

E. Bid Solicitation
A bid walk-through date and time are scheduled. The homeowner may choose to solicit his/her own bids or request that the Program Operator solicit bids on his/her behalf. Invitations to bid are mailed to all eligible contractors on file in efforts to obtain three reasonable bids. Bid results will be provided to participating contractors.

Contractors must be licensed and bonded by the State of California Contractors Licensing Board. Contractors must also provide Program Operator with evidence of Workers’ Compensation Insurance and Comprehensive General Liability and Property Damage Insurance with Combined Single Limits of at least $1,000,000.

Cost reasonableness is determined by comparing the bids received with the cost estimate prepared by the Program Operator. Bids should be within 10% of the Program Operator’s cost estimate, otherwise an explanation must be provided to the file for any bid selected exceeding 10% of the estimate. The homeowner is encouraged to accept the lowest reasonable bid.

The Program Operator determines eligibility of the contractor by contacting the State Contractors License Board and checking the Federal List of Debarred Contractors and the City of El Centro’s Business License Division. The contractor is also required to provide self-certification stating that he/she is not on the Federal debarred list. Once determined eligible, the contractor is then notified of provisional award of bid (pending loan approval). Notices of non-award are mailed to participating contractors.

City of El Centro Housing Rehabilitation Program Guidelines 7 F. Loan Request/Approval
A report and loan request are prepared on behalf of the homeowner by the Program Operator. The loan request includes the cost of construction, a contingency fund, and other project costs (listed in Section 6.3.). Note: For HOME, the project costs listed in Section 6.3 are considered activity delivery costs to be paid by the Sponsor and may not be charged to the homeowner’s loan.

A Loan Review Committee meeting is scheduled to hear the loan request. Section

1.3 provides additional information on the loan approval process. Once approved, loan documents are executed and the loan is funded.

G. Pre-Construction Conference
A pre-construction conference is scheduled with homeowner, contractor, and Program Operator. The Program Operator reviews the Owner-Contractor Construction Contract, including the work write-up, start date, pay schedule, and date of completion, with the homeowner and contractor. The construction contract and Notice to Proceed are executed.

H. Start-Up/Field Inspections
The Program Operator monitors date of start-up and performs field inspections on a regular basis. The Program Operator will visit the job site regularly in order to check the scope of work, inspect materials, and to confirm the job is on schedule and within budget. The Program Operator works with the Sponsor’s Building Inspector to ensure the work meets building codes, while not exceeding funding limits.

The Program Operator reviews the work status with the homeowner and with the contractor in order to remedy any developing problems quickly and to ensure that both are satisfied with the construction process. At the completion of each phase, the Program Operator inspects the work and the homeowner authorizes contractor payments.

The Program Operator will refer back to original plans and specifications to verify the work was completed as contracted.

I. Change Orders
Written change orders are required when the homeowner requests any changes in the write-up, such as eliminating an item completely, eliminating one item and substituting another, or adding items. The change order will state the change and dollar value for the change. The change order must be signed by both the contractor and the homeowner, and submitted to the Program Operator for approval. If the change order exceeds the approved financing, the homeowner will be asked to provide additional funds or a report and request for additional funds may be presented to the Sponsor’s Loan Review Committee for approval prior to Program Operator signing-off on the change order.

City of El Centro Housing Rehabilitation Program Guidelines 8 J. Progress Payments
Ninety percent (90%) of the contract amount is distributed to the contractor in the form of progress payments during construction. The final ten-percent (10%) of the contract amount is set aside as a retention payment. The contractor requests a progress payment from the Program Operator. Upon favorable inspection by the Program Operator, and Sponsor or Sponsor’s Building Inspector, the payment authorization is signed by the Program Operator and submitted for payment.

K. Final Inspections/Notice of Completion/Final Payment When the project is completed, the Program Operator inspects the work item by item with the homeowner, the contractor, and/or the Sponsor. The Sponsor’s Building Inspector performs a final inspection. Any corrections or deficiencies are noted and corrected by the contractor. Upon favorable final inspections, a Notice of Completion is prepared, signed by the homeowner, and then recorded.

The final ten-percent (10%) retention payment is released 35 days after the recording of the Notice of Completion.

1.3. LOAN PROCESS
The Sponsor’s Loan Review Committee must approve all loans and grants. The Loan Review Committee may approve assistance with CDBG financing exceeding 100 percent of after-rehabilitation value as needed in cases where no other financial resources are available to cover the cost of the repairs and where clear and convincing documentation exists, justifying why the exception is needed.

However, if the project is CalHome funded, the total financing cannot be more than 105 percent of the after- rehabilitation value. For HOME-funded loans, the total financing cannot be more than 100 percent of the after-rehabilitation value, unless per HOME Management Memorandum 13-01 at https://www.hcd.ca.gov/grants-funding/grantsmanagement-memos/docs/Memo_13-01_re_grants_for_OOR.doc the entire HOME assistance amount is granted rather than loaned, due to a lack of any equity after rehabilitation, based on existing loans on the property and an after-rehabilitation value appraisal. In addition, the amount of HOME assistance, including Sponsor’s claimed Activity Delivery Costs, cannot exceed the Sponsor’s County HOME Per-Unit Subsidy Limits, and the after-rehabilitation value cannot exceed the HOME Homeownership Value Limits. See Attachment C for current limits and link to HCD Limits webpage.

In order to obtain financing, applicants must meet all property and eligibility guidelines in effect at the time the application is considered. Homeowners will be provided with written notification of approval or denial. Any reason for denial will be provided to the applicant in writing.

City of El Centro Housing Rehabilitation Program Guidelines 9 1.4. CONFLICT OF INTEREST REQUIREMENTS
When the Sponsor’s program contains Federal funds, the applicable Conflict of Interest requirements of 24 CFR section 570.611 shall be followed for CDBG assistance. 24 CFR section 92.356 of the HOME Final Rule shall be followed for HOME assistance, as follows:
(a) Conflicts prohibited. No persons described in paragraph (b) of this section who exercises or has exercised any functions or responsibilities with respect to activities assisted with HOME funds or who are in a position to participate in a decision making process or gain inside information with regard to these activities, may obtain a financial interest or benefit from a HOME-assisted activity, or have a financial interest in any contract, subcontract or agreement with respect to the HOME-assisted activity, or the proceeds from such activity, either for themselves or those with whom they have business or immediate family ties, during their tenure or for one year thereafter. Immediate family ties include (whether by blood, marriage or adoption) the spouse, parent (including stepparent), child (including stepchild), brother, sister (including a stepbrother or stepsister), grandparent, grandchild and in-laws of a covered person. (b) Persons covered. The conflict of interest provisions of paragraph (a) of this section apply to any person who is an employee, agent, consultant, officer, or elected official or appointed official of the participating jurisdiction, State recipient, or subrecipient which are receiving HOME funds.
(c) Exceptions: Threshold requirements. Upon the written request of the participating jurisdiction to HCD, HUD may grant an exception to the provisions of paragraph (a) of this section on a case-by-case basis when it determines that the exception will serve to further the purposes of the HOME Investment Partnerships Program and the effective and efficient administration of the participating jurisdiction's program or project. See 24 CFR section 92.356(d)(1-6) for details on the documentation needed in order to submit an exception request to HUD.

A contractor with a vested interest in the property cannot bid on a rehabilitation job.

Such a contractor may act as owner/builder, subject to standard construction procedures.

Owner/builders are reimbursed for materials purchased which are verified by invoice/receipt and used on the job. Reimbursement occurs after the installation is verified by the Program Operator to be part of the scope of work. Owner/builders are not reimbursed for labor.

2.0. APPLICANT QUALIFICATIONS

2.1. INCOME LIMITS
All homeowners must certify that they meet the household income eligibility requirements for the applicable HCD program(s) and have their household income documented. The income limits in place at the time of loan approval will apply when

City of El Centro Housing Rehabilitation Program Guidelines 10 determining applicant income eligibility. All applicants must have incomes at or below 80% of the County’s area median income (AMI), adjusted for household size, as published by HCD each year. See Attachment C for current limits and link to HCD Limits webpage.

Household: means one or more persons who will occupy a housing unit. Unborn children do not count in family size determination.

Annual Income: Generally, the gross amount of income of all adult household members is anticipated to be received during the coming 12-month period.

2.1.1 OWNER-OCCUPIED REQUIREMENTS
Owner-Occupant - to be eligible, household income must be equal to or less than the applicable HCD income limits. Owner will be required to provide income documentation. Refer to Income Inclusions and Exclusions for further guidance to the types of incomes to be included or excluded when calculating gross annual income. See Attachment A for HOME and CDBG. See Attachment A-1 for CalHome. Refer to Asset Inclusions and Exclusions for further guidance to the types of assets to be included or excluded when calculating gross annual income. See Attachment B.

Owner-occupants housing and/or debt ratios are not considered, nor is a credit report required, as the funding provided creates no additional monthly financial obligation. If an owner-occupant has a mortgage, it is verified that all payments are current and that no late payments have been received in the past twelve months.

2.2. INCOME QUALIFICATION CRITERIA
Projected annual gross income of the applicant household will be used to determine whether they are above or below the published HCD income limits. Income qualification criteria for HOME and CDBG, as shown in the most recent HCD program-specific guidance at https://www.hcd.ca.gov/grants-and-funding/income-limits/incomecalculation-and-determination-guide, will be followed to independently determine and certify the household’s annual gross income. Income will be verified by reviewing and documenting tax returns, copies of wage receipts, subsidy checks, bank statements and third-party verification of employment forms sent to employers. All documentation shall be dated within six months prior to loan closing and kept in the applicant file and held in strict confidence.

A. HOUSEHOLD INCOME DEFINITION:

Household income is the annual gross income of all adult household members that is projected to be received during the coming 12-month period, and will be used to determine program eligibility. Refer to Income Inclusions and Exclusions for further guidance to the types of incomes to be included or excluded when calculating gross annual income. For those types of income counted, gross amounts (before any deductions have been taken) are used. Two types of income that are not considered would be income from minors and of live-in aides.

Certain other household members living apart from the household also require

City of El Centro Housing Rehabilitation Program Guidelines 11 special consideration. The household’s projected ability to pay must be used, rather than past earnings, when calculating income.

See Attachment A: HOME and CDBG 24 CFR Part 5 Annual Income Inclusions and Exclusions and Attachment A-1: CalHome Title 25 Section 6914 Annual Income inclusions and Exclusions (State)
B. ASSETS:

There is no asset limitation for participation in the Program. Income from assets is, however, recognized as part of annual income under the Part 5 definition. An asset is a cash or non-cash item that can be converted to cash. The value of necessary items such as furniture and automobiles is not included. (Note: it is the income earned – e.g. interest on a savings account – not the asset value, which is counted in annual income.)
An asset’s cash value is the market value less reasonable expenses required to convert the asset to cash, including Penalties or fees for converting financial holdings and costs for selling real property. The cash value (rather than the market value) of an item is counted as an asset.

See Attachment B: Part 5 Annual Income Net Family Asset Inclusions and Exclusions

2.3. HOMEOWNER ELIGIBILITY AND RESIDENCY REQUIREMENTS
The Sponsor’s Housing Rehabilitation Program allows for owner-occupied properties to participate in the Program. Owner-occupied units must be the owner’s principal place of residence. A photocopy of a recent utility bill will verify proof of occupancy. No unit to be rehabilitated will receive financial assistance if it is currently occupied by an overincome household or does not meet the eligibility standards outlined in these guidelines.

2.3.1 OWNER-OCCUPIED
A. Continued residency is monitored annually by Attachment F for the term of the loan. Occupancy will be verified by the submission of the following:

1. Proof of occupancy in the form of a copy of a current utility bill; and

2. Statement of unit's continued use as primary residence of the owner.

3. Current Homeowner’s Insurance Policy; and

4. Current Property Tax Bill

City of El Centro Housing Rehabilitation Program Guidelines 12 B. In the event that a homeowner sells, transfers title, or discontinues residence in the rehabilitated property for any reason, the loan becomes due and payable, unless the following conditions are met:

The homeowner who received the loan dies and the heir to the property meets income requirements and intends to occupy the home as his/her principal residence. If the heir does not meet applicable eligibility requirements, the loan is due and payable. Note: Loans provided by CalHome are not assumable.

C. If a homeowner converts the property to a rental unit, or any commercial or nonresidential use, the loan is due and payable, unless the loan was funded with CDBG and tenant and homeowner meet eligibility requirements.

If the loan is funded with a CalHome Loan it is not transferable except under the following limited circumstances:
(a) The transfer of the Property to the surviving joint tenant by devise, descent or operation of the law, on the death of a joint tenant;
(b) A transfer of the Property where the spouse becomes an owner of the property;
(c) A transfer of the Property resulting from a decree of dissolution of marriage, legal separation or from an incidental property settlement agreement by which the spouse becomes an owner of the Property; or
(d) A transfer to an inter vivos trust in which the Borrower is and remains the beneficiary and occupant of the property.

3.0. PROPERTY ELIGIBILITY

3.1. CONDITIONS
A. No unit will be eligible if a household’s income exceeds the prescribed income limits listed in Attachment C.

B. Units to be rehabilitated must be located within the incorporated areas of the Sponsor’s jurisdiction.

C. Property must contain a legal residential structure intended for continued residential occupancy.

D. All repair work will meet Local Building Code standards. At a minimum, health and safety hazards must be eliminated. For CDBG the priority will be the elimination of health and safety hazards. Sponsor may also require elimination of code deficiencies. When HOME funds are used for housing rehabilitation, the property must meet all applicable current codes, rehabilitation standards,

City of El Centro Housing Rehabilitation Program Guidelines 13 ordinances, and zoning ordinances at the time of project completion. However, if certain components of the house are sound and were built to code prescribed at the time of installation, no repair or alteration will be made to those components.

Section 8 Housing Quality Standards may be required on rentals by Sponsor when CDBG funds are used.

3.2. ANTI-DISPLACEMENT POLICY AND RELOCATION ASSISTANCE Tenants will be informed of their eligibility for temporary relocation benefits if occupancy during rehabilitation constitutes a danger to health and safety of occupants or public danger or is otherwise undesirable because of the nature of the project. Relocated persons will receive increased housing costs, payment for moving and related expenses and appropriate advisory services, as detailed in the Sponsor's "Residential Antidisplacement and Relocation Assistance Plan" (Attachment E).

Owner-occupants are not eligible for temporary relocation benefits, unless health and safety threats are determined to exist by the Program Operator. In cases where relocation is determined to be necessary by the Sponsor/Program Operator, assistance may be provided for actual costs incurred from the applicant’s loan proceeds or as a grant (see Section 4.4. for allowable grants). HOME-funded projects will provide relocation assistance in the form of a grant, which shall be included in the maximum assistance amount.

Note: Relocation benefits are not a requirement under CalHome, but are acceptable and may be covered by loan proceeds.

3.3. NOTIFICATION AND DISCLOSURES - Not required by CalHome A. Occupants of units constructed prior to 1978 will receive proper notification of Lead-Based Paint (LBP) hazards as follows:

The Lead Hazard Information Pamphlet published by the EPA/HUD/Consumer Product Safety Commission will be given to all owners regardless of the cost of rehabilitation or paint test findings. If lead-based paint is found through testing or if presumed, a Notice of Lead Hazard Evaluation or Presumption will also be supplied.

When Lead hazards are present, a Notice of Lead Hazard Reduction Activity and a Lead Hazard Evaluation Report will also be provided (Attachment I).

B. Tenants located in properties that will receive housing rehabilitation will be provided with a notice outlining their relocation rights and benefits (Attachment E).

3.4. ENVIRONMENTAL REVIEW
The Program Operator must conduct an environmental review in order to comply with 24 CFR section 92.352(a), which requires that the environmental effects of, and upon, each activity carried out with HOME funds be assessed in accordance with the provision of the National Environmental Policy Act of 1969 (NEPA) and the related authorities listed in HUD’s implementing HOME regulations at 24 CFR Part 58.

City of El Centro Housing Rehabilitation Program Guidelines 14 The Program Operator must use the Categorically Excluded, Subject To 58.5 (“CEST”) format found on the HUD Environmental Review page at
https://www.hudexchange.info/programs/environmental-review/, and Sponsor’s NEPA Certifying Officer must sign the completed certification. Sponsor must also use applicable worksheets at https://www.hudexchange.info/programs/environmentalreview/federal-related-laws-and-authorities/,for each CEST factor.

The Sponsor’s HOME Standard Agreement requires that HOME Program written approval of each project’s environmental review package is received, prior to committing funds to any rehabilitation project. HCD recommends that Program pre-approval of the environmental review package is obtained prior to the NEPA Certifying Officer signature.

The default NEPA Certifying Officer, until and unless delegated by an individual still in that position or by the governing body, is only the mayor, City Manager or City Administrator, County Administrative Officer or equivalent, or the Chair of the Board of Supervisors. NEPA Certifying Officer delegations must contain HUD-required language, and must be separate from other signatory delegations. Required language is available from the HOME Program.

4.0. THE PROGRAM LOAN

4.1. MAXIMUM AMOUNT OF PROGRAM ASSISTANCE
An eligible homeowner may qualify for the full cost of rehabilitation/reconstruction work needed to comply with State and local codes and ordinances. Maximum assistance shall not exceed the Sponsor’s County maximum HOME Per-Unit Subsidy Limits in Attachment C, which has a link to the HCD Limits webpage. For CDBG-funded programs, the maximum assistance for rehabilitation/reconstruction will not exceed $190,430.

4.2. AFFORDABILITY PARAMETERS FOR HOMEOWNERS
A. Total indebtedness against property shall not exceed 100 percent of afterrehabilitation value as determined by “Estimates of value” or an appraisal, for CDBG or HOME projects. The exception for HOME loans is per HOME Management Memorandum 13-01 at https://www.hcd.ca.gov/grants-funding/grants-managementmemos/docs/Memo_13-01_re_grants_for_OOR.doc, wherein the entire HOME assistance amount is granted rather than loaned, due to a lack of any afterrehabilitation equity based on existing loans on the property. An estimate of afterrehab value will be made prior to making a commitment of funds using the method outlined in Section 4.5. Note: This does not apply to CalHome projects.

B. HOME-funded units’ after-rehabilitation values shall not exceed the HOME Homeownership Value Limits for Sponsor’s County as updated by HUD and published on the HCD Website. See Attachment C for current limits, which may reflect temporary waivers not published on the HCD Website, and for a link to the HCD Limits webpage.

City of El Centro Housing Rehabilitation Program Guidelines 15 C. Total indebtedness against property shall not exceed 105 percent of the afterrehabilitation value as determined by an appraisal for CalHome projects. An estimate of After-Rehab Value will be made prior to making a commitment of funds using the method outlined in Section 4.5. Note: This does not apply to HOME or CDBG projects.

D. Costs may be supplemented with personal financing, or with other loan or grant programs, which are sources of leverage for the Sponsor.

E. Any bid within 10% of the Program Operator’s estimate may be selected, otherwise an explanation must be provided to the file for a bid selected exceeding 10% of the estimate.

4.3. RATES AND TERMS

4.3.1. OWNER-OCCUPANTS
A. Homeowners are eligible for Deferred Payment Loans (DPL), at zero interest, evidenced by a Promissory Note and secured by a Deed of Trust, with no payment required for 30 years unless the borrower sells or transfers title or discontinues residence in the dwelling. Payments may be made voluntarily on a DPL. Note: If it is determined by the Sponsor that repayment of a CalHome or CDBG Program loan at the maturity date causes a hardship to the homeowner, the Sponsor may opt for the following:

1. Amend the note and deed of trust to defer repayment of the amount due at maturity, that is balance of the original principal plus the accrued interest, for up to an additional 30 years (at 0% additional interest). This may be offered one time;

2. Convert the debt at loan maturity; that is the balance of the original principal plus any accrued interest, to an amortized loan, repayable in 15 years at 0% additional interest.

B. If the homeowner dies, and if the heir(s) to the property live(s) in the house and is/are income eligible, the heir(s) may be permitted, upon approval of the Sponsor, to assume the loan at the rate and terms the heir(s) qualifies for under current participation guidelines. Note: CalHome loans are not assumable.

C. If the homeowner dies and the heir(s) is/are not income eligible, the loan becomes all due and payable.

D. If a homeowner converts the rehabilitated property to any residential-rental, commercial or non-residential use, the loan becomes all due and payable.

E. As specified in the Rehabilitation Loan Agreement, all applicants who participate in the Program must maintain the property at post-rehabilitation conditions for the term of the loan. Should the property not be maintained accordingly, the loan shall be considered in default and becomes all due and payable, and if necessary, foreclosure proceedings will be initiated. A method of inspection will be established by the Sponsor.

City of El Centro Housing Rehabilitation Program Guidelines 16 4.4. GRANTS
A. CDBG-funded programs may provide grants as follows:

1. A grant of up to $7,500 is available for any one of the following qualifying factors:
(a) Senior Citizen - at least 62 years old; or
(b) Handicapped – for only handicap modifications to a house with one or more physically handicapped occupants who would function more independently if such modifications were installed; or
(c) Lowest Targeted Income Group – with gross annual income less than 50 percent of County median income; or
(d) Equity maintenance – if financing rehabilitation entirely with a loan would cause indebtedness to exceed 100% of after-rehabilitation value; or
(e) Curb, gutter and sidewalk – when curb, gutter and/or sidewalk are required by City code; or
(f) Building permits, school fees, appraisals, property report/title insurance, building permits, termite report, land survey, grading plans, recording fees and/or flood insurance; or
(g) Emergencies – failure of a major household component that would require the participant to live without basic plumbing, electrical, heating, cooling, or security. (These funds are not for use during a normal rehabilitation, they are for true emergency situations, such as a failed sewer line or water heater, blown electrical panel, etc.)

2. Grants of up to $10,000 are available for Fire Sprinkler installation and associated costs – for reconstruction projects, as required by CCR, Title 24, Part 2.5 of the 2010 California Residential Code.

3. Grants are available for the repair, replacement, or abandonment of domestic water wells and/or associated costs (such as water pump lowering) based on invoices from contracted well drillers and/or water pump installers. The Program Operator must approve a total cost estimate from a contracted well driller and/or water pump installer prior to financing approval to ensure cost reasonableness.

4. Grants of up to $7,500 are available for asbestos containment and/or removal.

B. HOME and CDBG provide grants for all actual costs of lead-based paint evaluation and reduction activities.

C. HOME and CDBG provide grants for relocation assistance. See Relocation Assistance Plan, Attachment E.

1. Owner-Occupant – Limit of $3,000.

D. HOME-funded projects include grants, if necessary, to cover the costs of financing in excess of available equity. Available equity will be determined by subtracting

City of El Centro Housing Rehabilitation Program Guidelines 17 the current total indebtedness from the after-rehabilitation value. Grants provided may be up to 25 percent of the applicable HUD Per-Unit Subsidy Limits established pursuant to 24 CFR section 92.250(a). This grant amount is in addition to any grant funds provided pursuant to Section 4.4.B. and 4.4.C.

E. Grants are not available in CalHome-funded programs.

4.5. APPRAISAL
A. The After-Rehab Value for rehabilitation projects is determined using the “Estimates of value” method. The Sponsor or Program Operator determines estimates of value based on the sale prices of at least three (3) comparable properties, sold within the last six months (within one year of the assistance date, which is the date the promissory note is signed), and located within one mile of the subject property. The participants’ file will include the estimate of value and document the basis for the value estimates.

The purpose of the “Estimates of value” is to determine that the After-Rehabilitation Value Limit of the housing unit will not exceed the permitted amount per HCD Program regulations (See Attachment C). If three comparable properties cannot be found, or if there is any question regarding the After-Rehab Value, the ARV will be determined by a licensed appraiser, as described in Section 4.5.B. below.

B. A licensed appraiser determines the After-Rehab Value for rehabilitation projects, when the “Estimates of value” method cannot be used. For rehabilitation projects the appraiser determines the value of the unit with the rehabilitation building plans and specifications included. For HOME only, the cost of the appraisal will be paid by the Sponsor, not by the homeowner. The purpose of the appraisal is to determine that the after-rehabilitation value of the housing unit will not exceed the permitted amount per HCD Program regulations (See Attachment C), and that the combined loans will not exceed the maximum combined loan-to-value limit, as described in Section 4.2.A above.

C. The After-Rehab Value for reconstruction projects is determined by a licensed appraiser. The After-Rehab Value for reconstruction projects is determined by an appraisal completed of the building plans and specifications for the new home. For HOME only, the cost of the appraisal will be paid by the Sponsor, not by the homeowner. The purpose of the appraisal is to determine that the AfterRehabilitation Value Limit of the housing unit will not exceed the permitted amount per HCD Program regulations (See Attachment C).

4.6. INSURANCE

4.6.1. HAZARD INSURANCE
The homeowner shall maintain hazard insurance on the property for the duration of the Program loan(s). This insurance must be an amount adequate to cover all encumbrances on the property. The insurer must identify the Sponsor as Loss Payee for the amount of the Program loan(s). Evidence of this shall be provided to the Sponsor.

City of El Centro Housing Rehabilitation Program Guidelines 18 In the event the applicant fails to make the hazard insurance premium payments in a timely fashion, the Sponsor at its option, may make such payments for a period not to exceed 60 days. The Sponsor may, in its discretion and upon the showing of special circumstances, make such premium payments for a longer period of time. Should the Sponsor make any payments, it may, in its sole discretion, add such payments to the principal amount that the applicant is obligated to repay the Sponsor under this Program.

The premium may be paid by the Program loan for one year. Note: HOME and CDBG funds cannot be used to pay insurance costs beyond those identified as initial loan costs. Note: CalHome funds cannot be used to pay insurance at any time.

4.6.2. FLOOD INSURANCE
For homes in a 100-year flood zone, the owner is required to maintain flood insurance in an amount adequate to secure the Program loan and all other encumbrances. This policy must designate the Sponsor as Loss Payee and a binder shall be provided to the Sponsor and maintained in the borrower’s file. The premium may be paid by the Program loan for one year. Note: HOME funds cannot be used to pay insurance costs beyond those identified as initial loan costs. Note: CalHome funds cannot be used to pay insurance at any time.

4.7. LOAN SECURITY
A. Loan security for all owner-occupied rehabilitation stick-built homes will be secured by the real property and improvements, and will also include a Deed of Trust, Promissory Note and Loan Agreement in favor of the Sponsor.

B. A manufactured home in a mobile home park or on leased land that is not on a permanent foundation will be secured by an HCD 480.7 or an HCD 484 Statement of Lien, and will also include a Promissory Note and Loan Agreement.

C. Entering a subordinate lien is acceptable. However, the Sponsor will not subordinate a first lien position once established.

5.0. PROGRAM LOAN SERVICNG AND MAINTENANCE

5.1. PAYMENTS ARE VOLUNTARY
Borrowers may begin making voluntary payments at any time.

5.2. RECEIVING LOAN REPAYMENTS
A. Program loan payments will be made to:

AmeriNat
P.O. Box 52211
Phoenix, AZ 85072-2211
B. The Sponsor will be the receiver of loan payments or recapture funds and will

City of El Centro Housing Rehabilitation Program Guidelines 19 maintain a financial record-keeping system to record payments and file statements on payment status. Payments shall be deposited and accounted for in the Sponsor’s appropriate Program Income Account, as required by all three HCD programs. The Program Sponsor will accept loan payments from borrowers prepaying deferred loans and from borrowers making payments in full upon sale or transfer of the property. All loan payments are payable to the Sponsor. The Sponsor may, at its discretion, enter into an agreement with a third party to collect and distribute payments and/or complete all loan servicing aspects of the Program.

5.3. LOAN SERVICING POLICIES AND PROCEDURES
See Attachment F for local loan servicing policies and procedures. While the attached policy outlines a system that can accommodate a crisis that restricts borrower repayment ability, it should in no way be misunderstood: The loan must be repaid. All legal means to ensure the repayment of a delinquent loan as outlined in the Loan Servicing Policies and Procedures will be pursued.

5.4. LOAN MONITORING PROCEDURES
Homeowners will be required to submit each of the following to the Sponsor at the time of annual occupancy verification per Attachment F:
• Proof of occupancy in the form of a copy of a current utility bill; • Statement of unit's continued use as a residence;
• Declaration that other title holders do not reside on the premises; • Verification that Property Taxes are current; and
• Verification of current required insurance policies.

5.5. DEFAULT AND FORECLOSURE
If an owner defaults on a loan, and foreclosure procedures are instituted, they shall be carried out according to the Program Foreclosure Policy adopted by the Sponsor, and attached to these guidelines as Attachment G.

5.6. SUBORDINATIONS
The Sponsor may approve a request to subordinate a loan, in order for the owner to refinance the property, under the following conditions:

A. The lien position of the Sponsor loan will remain the same or be advanced.

B. The new primary loan is no greater than the balance of the loan being refinanced, except the costs of refinancing the loan may be added to the principal balance.

City of El Centro Housing Rehabilitation Program Guidelines 20 C. The purpose of the new primary loan is to reduce the interest rate being paid and/or reduce the owner's payment.

D. The refinanced loan must have an impound account for taxes and insurance.

E. The refinancing terms must be acceptable to the Sponsor.

F. CDBG allows refinancing with CDBG funds in conjunction with only rehabilitation of the unit.

6.0. CONSTRUCTION

6.1. STANDARDS
A. All repair work will meet Local Building Code standards. At a minimum, health and safety hazards must be eliminated. For CDBG the priority will be the elimination of health and safety hazards. Sponsor may also require elimination of code deficiencies.

When HOME funds are used for housing rehabilitation, the property must meet all applicable current codes, rehabilitation standards, ordinances, and zoning ordinances at the time of project completion. However, if certain components of the house are sound and were built to code prescribed at the time of installation, no repair or alteration will be made to those components. Section 8 Housing Quality Standards may be required on rentals by Sponsor when CDBG funds are used.

B. Contracting Process

1. Contracting will be done on a competitive basis.

2. The homeowner will be the responsible agent, but the Sponsor and/or its Program Operator will prepare the work write-up, prepare and advertise the bid package, and assist the owner in negotiating the construction contract.

3. A competitive bid process will be followed for all rehabilitation work. Upon bid review, the homeowner will select a contractor whose total bid amount is within 10% of the in-house estimate.

4. If during the course of the housing rehabilitation project the Housing Inspector deems it necessary to re-construct the entire dwelling due to unforeseen circumstances, the project will cease and a Test for Reconstruction will be submitted to HCD for approval prior to a change order being executed with contractor.

5. The Sponsor does not warrant any construction work, or provide insurance coverage.

C. Approved Contractors

1. Contractors are required to be licensed with the State of California, and be active and in good standing with the Contractors’ License Board.

City of El Centro Housing Rehabilitation Program Guidelines 21 2. Contractors will be checked against HUD’s list of federally debarred contractors. No award will be granted to a contractor on this list.

3. Contractors must have public liability and property damage insurance, and worker’s compensation, unemployment and disability insurance, to the extent required by State law.

4. Contractor must agree to comply with all federal and state regulations.

D. Unprofessional Conduct by Contractor
In the event that the Community Services Director determines that a participating contractor is found to have displayed unprofessional conduct that goes against the City’s program guideline and California Business and Professions Code, the contractor will be temporarily suspended for a minimum of six (6) months or permanently removed from participation in the City’s Housing Programs. A written Notice of suspension will be mailed to the contractor via certified mail/return receipt stating the reason(s) for the decision.

1. Offering homeowner(s) additional incentives not included in the original scope of work in order to entice the homeowner(s) to select them for the project.

2. Making derogatory comments of other participating contractors or City Staff to homeowner(s).

3. Threatening or accusing City staff of unprofessional behavior and/or favoritism.

4. Refusal to honor all aspects of contract between homeowner and contractor.

5. Any other conduct deemed unprofessional by City Staff.

E. Suspension.

Contractors may be suspended for a minimum of six (6) months or may be removed permanently from participating in the City’s Housing Programs. Once the suspension period has ended, the Contractor may submit in writing a letter requesting reinstatement to participate in the City’s Housing Programs. Upon approving request, City staff will mail the Contractor a letter requesting a new application and updated documentation as required by the program. The Contractor will be notified in writing of reinstatement once all of the documentation has been verified and approved.

F. Contractor Appeal Procedure
Contractors suspended from participating in the City’s Housing Programs may file a written appeal protesting the decision within five (5) calendar days after receiving the Notice of Suspension from the City to the Community Services Director. Any claim not presented within the limit specified in this paragraph shall be deemed to have been waived.

If the Contractor does not agree with the decision of the Community Services Director, the Contractor may file a written appeal to the City Manager within three (3) calendar days after the decision of the original appeal. All decisions of the City Manager will be final and be made within thirty (30) calendar days of the receipt of the filing of the appeal. Written notification of the City Manager’s decision will be mailed to the contractor.

City of El Centro Housing Rehabilitation Program Guidelines 22 G. Occupants of units constructed prior to 1978 will receive proper notification of Lead-Based Paint (LBP) hazards as identified in Section 3.3.A. Note: Units funded solely with CalHome funds are not required to comply with LBP regulations.

H. Units constructed prior to 1978 will also be inspected according to the following HUD regulations. Note: Units funded solely with CalHome funds are not required to comply with LBP regulations. For CDBG funded programs please refer to Chapter 20, Lead-Based Paint Requirements for guidance in the CDBG Grant Management Manual.

1. If the total amount of Federal assistance or the total amount of rehabilitation hard cost is up to and including $5,000, the following is required:
(a) Paint testing or presume LBP;
(b) Clearance of disturbed work areas; and
(c) Notifications listed in Section 3.3.A.

2. If the amount of Federal assistance or the total amount of rehabilitation hard cost is more than $5,000 up to and including $25,000, the following is required:
(a) Paint testing or presume LBP;
(b) Risk assessment; and
(c) Clearance of unit.

If LBP hazards are identified, interim controls will be implemented. This level will also require a notice of “Abatement of Lead Hazards Notification” at least five days prior to starting work.

3. If the amount of Federal assistance or the total amount of rehabilitation hard cost is more that $25,000, the following is required:
(a) Items (a), (b), and (c) of 2. above;
(b) Abatement of all LBP hazards identified or produced; (c) Use of interim controls on exterior surfaces not disrupted by rehab; and all notices listed above in Sections 3.3.A. and 6.1.F.2.

4. All paint tests that result in a negative finding of lead-based paint are exempt from any and all additional requirements. If defective paint surfaces are found, they will be properly treated or abated. A State-certified Inspector/Assessor will perform all paint testing, risk assessments, and clearances. A trained supervisor may oversee interim controls; however, a certified supervisor and workers will perform all abatement.

6.2. ELIGIBLE CONSTRUCTION COSTS
“Rehabilitation” means, in addition to the definition in Section 50096 of the Health and Safety Code, repairs and improvements to a manufactured home necessary to correct any condition causing the home to be substandard pursuant to Section 1704 of Title 25, California Code of Regulations. Rehabilitation also includes room additions to alleviate overcrowding. Rehabilitation also means repairs and improvements where necessary to

City of El Centro Housing Rehabilitation Program Guidelines 23 meet any locally-adopted standards used in local rehabilitation programs. Rehabilitation does not include replacement of personal property.

Rehabilitation includes reconstruction. Federal law and policy allow the use of HOME funds to demolish and reconstruct owner-occupied residential structures. Reconstruction is defined as the demolition and construction of a structure. The Sponsor and/or Program Operator must document that the reconstruction costs are less than the cost to rehabilitate the existing substandard housing. This will be done using the State’s CDBG Test for Reconstruction, for projects funded with CDBG funds; or, using the State’s HOME Test for Reconstruction, for projects funded with HOME funds.

Additionally, the Sponsor must determine that the project’s value after reconstruction (housing and land combined) is less that the HOME Homeownership Value Limits for Newly-Constructed housing, in the Sponsor’s jurisdiction (see Attachment C).

The residential structure to be reconstructed must be a structure with cooking, eating, sleeping, and sanitation facilities which have been legally occupied as a residence within the preceding 12 months. Fifth wheels or recreational vehicles, for example, are not considered dwellings and therefore are not eligible under this Program.

Like for like requires that the structure being demolished must be replaced with a like structure (replace manufactured housing with manufactured housing, for example).

However, additions may be approved by the HCD Program when required by Codes/Ordinances or to alleviate overcrowding (see Attachment C).

Temporary relocation benefits must be planned for and budgeted into the total allowable subsidy for the project, but if required it would be in the form of a grant.

Depending on the outcome of the federal environmental review, a reconstructed project may require Authority from the State before funds are committed to the project. See Environmental Section 3.4.

Allowable rehabilitation\reconstruction costs include:

A. Cost of building permits and other related government fees.

B. Cost of architectural, engineering, and other consultant services which are directly related to the rehabilitation of the property.

C. Rehabilitation or Replacement of a manufactured home not on a permanent foundation. Rehabilitation of a manufactured home may include the replacement of the unit with a used manufactured home and the cost to repair it, as long as the unit has been occupied and is not used as a demonstration model. Should the unit meet the criteria for reconstruction a new manufactured home can be used for replacement and all costs associated with the purchase and transportation can be added to the loan.

City of El Centro Housing Rehabilitation Program Guidelines 24 D. Owner-occupied rehabilitation activity delivery fees, pursuant to Section 7733(f), as reimbursement to the Sponsor for the actual costs of services rendered to the homeowner that are incidentally but directly related to the rehabilitation work (e.g. planning, engineering, construction management, including inspections and work write-ups).

E. Rehabilitation will address the following issues in the order listed. Eligible costs are included for each item.

1. Health and Safety Issues
Eligible costs include, but are not limited to, energy-related improvements, lead-based paint hazard evaluation and reduction activities, improvements for handicapped accessibility, and repair or replacement of major housing systems.

Per the federal HOME Regulations at 24 CFR section 92.251(b), Major Systems are:
•structural support
•roofing
•cladding and weatherproofing (e.g., windows, doors, siding, gutters) •plumbing
•electrical
•heating, ventilation, and air conditioning.

Upon project completion, each of the major systems must have a remaining useful life for a minimum of five (5) years, so these systems must be rehabilitated or replaced as part of the rehabilitation work in order to achieve this requirement.

A driveway may be considered part of rehabilitation if it is determined to be a health and safety issue.

2. Code and Regulation Compliance
Eligible costs include, but are not limited to, additional work required to rehabilitate and modernize a home to bring it into compliance with current building codes and regulations. Painting and weatherization are included.

3. Demolition
Eligible costs include, but are not limited to, the tear down and disposal of dilapidated structures when they are a part of the reconstruction of an affordable housing unit. If a garage or carport is detached, it may not be rehabilitated but may be demolished, if it is determined to be a health and

City of El Centro Housing Rehabilitation Program Guidelines 25 safety issue.

4. Upgrades (based on overcrowding)
Eligible costs include additional bedrooms and bathrooms if the need can be demonstrated by HUD’s or Sponsor’s overcrowding guidelines listed in Attachment C. The Program will not fund additions to a home for a den or family room, or for any luxury items.

The CalHome Program’s requirement is that a bedroom or bathroom can be added to omit overcrowding, and this is up to the Recipient to decide what is overcrowding.

5. General Property Improvements
Eligible costs include, but are not limited to addition or replacement of an oven, stove, dishwasher, or fixture; replacing floor coverings; painting; and repair or installation of fencing.

All improvements must be physically attached to the property and permanent in nature. Non-code general property improvements (including fencing, landscaping, driveway, etc.) will be limited to 15 percent of the rehabilitation loan amount. Any cash contribution by the property owner will be considered a general property improvement and be included in this percentage. Luxury items are not permitted. Items such as stoves and dishwashers that are not built-in may be replaced due only to incipient failure or documented medical condition of the homeowner, and must be of moderate quality.

6. Rehabilitation Standards
All repair work related to health and safety conditions will meet Local Building Code standards. The priority will be the elimination of all health and safety hazards and code compliance, which is required for HOME-funded projects.

6.3. ELIGIBLE PROJECT COSTS
Examples of eligible project costs for all administrative expenses related to the paperwork for processing and insuring a loan application are listed below. For HOME, these costs are considered activity delivery costs and may not be charged to the homeowner’s loan.
• Appraisal
• Property Report/Title Insurance
• Building Plan
• Termite Report
• Land Survey
• Grading Plan

City of El Centro Housing Rehabilitation Program Guidelines 26 • Recording Fees
• Hazard/Course of Construction Insurance
• Flood Insurance, as applicable (not allowed with CalHome or HOME funds)
Costs are based on charges currently incurred by the Sponsor, or its Program Operator, for these products and/or services. Except for HOME loans, any cost increases charged to the Sponsor/Program Operator for these products and/or services will be passed on to the homeowner and included in the loan. All fees are subject to change and are driven by the market.

6.4. REPAIR CALLBACKS
Contractors will comply with State law regarding all labor and material warranties. All labor and material shall meet FHA minimum specifications.

7.0. EXCEPTIONS AND SPECIAL CIRCUMSTANCES

7.1. AMENDMENTS
The Sponsor may make amendments to these Participant Guidelines. Any changes made shall be in accordance with federal and state regulations, shall be approved by the Sponsor’s Loan Committee and/or local governing body and submitted to HCD for approval.

7.2. EXCEPTIONS
Any case to which a standard policy or procedure, as stated in the guidelines, does not apply or an applicant treated differently from others of the same class would be an exception.

7.2.1 PROCEDURES FOR EXCEPTIONAL CIRCUMSTANCES
A. The Sponsor or its Program Operator may initiate consideration of an exception and prepare a report. This report shall contain a narrative, including the Sponsor’s/Program Operator’s recommended course of action and any written or verbal information supplied by the applicant.

B. The Sponsor shall make a determination of the exception based on the recommendation of the Program Operator. The request can be presented to the Sponsor’s loan committee and/or governing body for decision.

8.0. DISPUTE RESOLUTION AND APPEALS PROCEDURES

City of El Centro Housing Rehabilitation Program Guidelines 27 8.1. PROGRAM COMPLAINT AND APPEAL PROCEDURE
Complaints concerning the Sponsor’s Rehabilitation Program should be made to the Program Operator first. If unresolved in this manner, the complaint or appeal shall be made in writing and filed with the Sponsor. The Sponsor will then schedule a meeting with the Sponsor’s Loan Review Committee. Their written response will be made within thirty (30) working days. If the applicant is not satisfied with the committee's decision, a request for an appeal may be filed with the local governing body. Final appeal may be filed in writing with HCD within one year after denial or the filing of the Project Notice of Completion.

8.2. GRIEVANCES BETWEEN PARTICIPANTS AND CONSTRUCTION

CONTRACTOR
Contracts signed by the contractor and the participant include the following clause, which provides a procedure for resolution of grievances:

Any controversy arising out of or relating to this Contract, or the breach thereof, shall be submitted to binding arbitration in accordance with the provisions of the California Arbitration Law, Code of Civil Procedure 1280 et seq., and the Rules of the American Arbitration Association. The arbitrator shall have the final authority to order work performed, to order the payment from one party to another, and to order who shall bear the costs of arbitration. Costs to initiate arbitration shall be paid by the party seeking arbitration. Notwithstanding, the party prevailing in any arbitration proceeding shall be entitled to recover from the other all attorney's fees and costs of arbitration.

City of El Centro Housing Rehabilitation Program Guidelines 28 ATTACHMENT A

INCOME INCLUSIONS AND EXCLUSIONS
24 CFR Part 5 Annual Income Inclusions and Exclusions

5.609 Annual income.
(a) Annual income includes, with respect to the family:
(1) All amounts, not specifically excluded in paragraph (b) of this section, received from all sources by each member of the family who is 18 years of age or older or is the head of household or spouse of the head of household, plus unearned income by or on behalf of each dependent who is under 18 years of age, and
(2) When the value of net family assets exceeds $50,000 (which amount HUD will adjust annually in accordance with the Consumer Price Index for Urban Wage Earners and Clerical Workers) and the actual returns from a given asset cannot be calculated, imputed returns on the asset based on the current passbook savings rate, as determined by HUD. (b) Annual income does not include the following:
(1) Any imputed return on an asset when net family assets total $50,000 or less (which amount HUD will adjust annually in accordance with the Consumer Price Index for Urban Wage Earners and Clerical Workers) and no actual income from the net family assets can be determined.
(2) The following types of trust distributions:
(i) For an irrevocable trust or a revocable trust outside the control of the family or household excluded from the definition of net family assets under § 5.603(b):
(A) Distributions of the principal or corpus of the trust; and (B) Distributions of income from the trust when the distributions are used to pay the costs of health and medical care expenses for a minor.
(ii) For a revocable trust under the control of the family or household, any distributions from the trust; except that any actual income earned by the trust, regardless of whether it is distributed, shall be considered income to the family at the time it is received by the trust. (3) Earned income of children under 18 years of age.
(4) Payments received for the care of foster children or foster adults, or State or Tribal kinship or guardianship care payments.

City of El Centro Housing Rehabilitation Program Guidelines 29 (5) Insurance payments and settlements for personal or property losses, including but not limited to payments through health insurance, motor vehicle insurance, and workers' compensation.
(6) Amounts received by the family that are specifically for, or in reimbursement of, the cost of health and medical care expenses for any family member. (7) Any amounts recovered in any civil action or settlement based on a claim of malpractice, negligence, or other breach of duty owed to a family member arising out of law, that resulted in a member of the family becoming disabled.
(8) Income of a live-in aide, foster child, or foster adult as defined in §§ 5.403 and 5.603, respectively.
(9)
(i) Any assistance that section 479B of the Higher Education Act of 1965, as amended (20 U.S.C. 1087uu), requires be excluded from a family's income; and (ii) Student financial assistance for tuition, books, and supplies (including supplies and equipment to support students with learning disabilities or other disabilities), room and board, and other fees required and charged to a student by an institution of higher education (as defined under Section 102 of the Higher Education Act of 1965 (20 U.S.C. 1002)) and, for a student who is not the head of household or spouse, the reasonable and actual costs of housing while attending the institution of higher education and not residing in an assisted unit.
(A) Student financial assistance, for purposes of this paragraph (9)(ii), means a grant or scholarship received from—
(1) The Federal government;
(2) A State, Tribe, or local government;
(3) A private foundation registered as a nonprofit under 26 U.S.C. 501(c)(3); (4) A business entity (such as corporation, general partnership, limited liability company, limited partnership, joint venture, business trust, public benefit corporation, or nonprofit entity); or
(5) An institution of higher education.
(B) Student financial assistance, for purposes of this paragraph (9)(ii), does not include— (1) Any assistance that is excluded pursuant to paragraph (b)(9)(i) of this section;

City of El Centro Housing Rehabilitation Program Guidelines 30 (2) Financial support provided to the student in the form of a fee for services performed (e.g., a work study or teaching fellowship that is not excluded pursuant to paragraph (b)(9)(i) of this section);
(3) Gifts, including gifts from family or friends; or
(4) Any amount of the scholarship or grant that, either by itself or in combination with assistance excluded under this paragraph or paragraph (b)(9)(i), exceeds the actual covered costs of the student. The actual covered costs of the student are the actual costs of tuition, books and supplies (including supplies and equipment to support students with learning disabilities or other disabilities), room and board, or other fees required and charged to a student by the education institution, and, for a student who is not the head of household or spouse, the reasonable and actual costs of housing while attending the institution of higher education and not residing in an assisted unit. This calculation is described further in paragraph (b)(9)(ii)(E) of this section. (C) Student financial assistance, for purposes of this paragraph (b)(9)(ii) must be:
(1) Expressly for tuition, books, room and board, or other fees required and charged to a student by the education institution;
(2) Expressly to assist a student with the costs of higher education; or (3) Expressly to assist a student who is not the head of household or spouse with the reasonable and actual costs of housing while attending the education institution and not residing in an assisted unit.
(D) Student financial assistance, for purposes of this paragraph (b)(9)(ii), may be paid directly to the student or to the educational institution on the student's behalf. Student financial assistance paid to the student must be verified by the responsible entity as student financial assistance consistent with this paragraph (b)(9)(ii). (E) When the student is also receiving assistance excluded under paragraph (b)(9)(i) of this section, the amount of student financial assistance under this paragraph (b)(9)(ii) is determined as follows:
(1) If the amount of assistance excluded under paragraph (b)(9)(i) of this section is equal to or exceeds the actual covered costs under paragraph (b)(9)(ii)(B)(4) of this section, none of the assistance described in this paragraph (b)(9)(ii) of this section is considered student financial assistance excluded from income under this paragraph (b)(9)(ii)(E).
(2) If the amount of assistance excluded under paragraph (b)(9)(i) of this section is less than the actual covered costs under paragraph (b)(9)(ii)(B)(4) of this section, the amount of assistance described in paragraph (b)(9)(ii) of this section that is considered student financial assistance excluded under this paragraph is the lower of:

City of El Centro Housing Rehabilitation Program Guidelines 31 (i) the total amount of student financial assistance received under this paragraph (b)(9)(ii) of this section, or
(ii) the amount by which the actual covered costs under paragraph (b)(9)(ii)(B)(4) of this section exceeds the assistance excluded under paragraph (b)(9)(i) of this section. (10) Income and distributions from any Coverdell education savings account under section 530 of the Internal Revenue Code of 1986 or any qualified tuition program under section 529 of such Code; and income earned by government contributions to, and distributions from, “baby bond” accounts created, authorized, or funded by Federal, State, or local government. (11) The special pay to a family member serving in the Armed Forces who is exposed to hostile fire.
(12)
(i) Amounts received by a person with a disability that are disregarded for a limited time for purposes of Supplemental Security Income eligibility and benefits because they are set aside for use under a Plan to Attain Self-Sufficiency (PASS); (ii) Amounts received by a participant in other publicly assisted programs which are specifically for or in reimbursement of out-of-pocket expenses incurred (e.g., special equipment, clothing, transportation, childcare, etc.) and which are made solely to allow participation in a specific program;
(iii) Amounts received under a resident service stipend not to exceed $200 per month. A resident service stipend is a modest amount received by a resident for performing a service for the PHA or owner, on a part-time basis, that enhances the quality of life in the development.
(iv) Incremental earnings and benefits resulting to any family member from participation in training programs funded by HUD or in qualifying Federal, State, Tribal, or local employment training programs (including training programs not affiliated with a local government) and training of a family member as resident management staff. Amounts excluded by this provision must be received under employment training programs with clearly defined goals and objectives and are excluded only for the period during which the family member participates in the employment training program unless those amounts are excluded under paragraph (b)(9)(i) of this section.
(13) Reparation payments paid by a foreign government pursuant to claims filed under the laws of that government by persons who were persecuted during the Nazi era. (14) Earned income of dependent full-time students in excess of the amount of the deduction for a dependent in § 5.611.
(15) Adoption assistance payments for a child in excess of the amount of the deduction for a dependent in § 5.611.

City of El Centro Housing Rehabilitation Program Guidelines 32 (16) Deferred periodic amounts from Supplemental Security Income and Social Security benefits that are received in a lump sum amount or in prospective monthly amounts, or any deferred Department of Veterans Affairs benefits that are received in a lump sum amount or in prospective monthly amounts.
(17) Payments related to aid and attendance under 38 U.S.C. 1521 to veterans in need of regular aid and attendance.
(18) Amounts received by the family in the form of refunds or rebates under State or local law for property taxes paid on the dwelling unit.
(19) Payments made by or authorized by a State Medicaid agency (including through a managed care entity) or other State or Federal agency to a family to enable a family member who has a disability to reside in the family's assisted unit. Authorized payments may include payments to a member of the assisted family through the State Medicaid agency (including through a managed care entity) or other State or Federal agency for caregiving services the family member provides to enable a family member who has a disability to reside in the family's assisted unit.
(20) Loan proceeds (the net amount disbursed by a lender to or on behalf of a borrower, under the terms of a loan agreement) received by the family or a third party (e.g., proceeds received by the family from a private loan to enable attendance at an educational institution or to finance the purchase of a car).
(21) Payments received by Tribal members as a result of claims relating to the mismanagement of assets held in trust by the United States, to the extent such payments are also excluded from gross income under the Internal Revenue Code or other Federal law. (22) Amounts that HUD is required by Federal statute to exclude from consideration as income for purposes of determining eligibility or benefits under a category of assistance programs that includes assistance under any program to which the exclusions set forth in paragraph (b) of this section apply. HUD will publish a notice in the Federal Register to identify the benefits that qualify for this exclusion. Updates will be published when necessary.
(23) Replacement housing “gap” payments made in accordance with 49 CFR part 24 that offset increased out of pocket costs of displaced persons that move from one federally subsidized housing unit to another Federally subsidized housing unit. Such replacement housing “gap” payments are not excluded from annual income if the increased cost of rent and utilities is subsequently reduced or eliminated, and the displaced person retains or continues to receive the replacement housing “gap” payments. (24) Nonrecurring income, which is income that will not be repeated in the coming year based on information provided by the family. Income received as an independent contractor, day laborer, or seasonal worker is not excluded from income under this paragraph, even if the source, date, or amount of the income varies. Nonrecurring income includes:

City of El Centro Housing Rehabilitation Program Guidelines 33 (i) Payments from the U.S. Census Bureau for employment (relating to decennial census or the American Community Survey) lasting no longer than 180 days and not culminating in permanent employment.
(ii) Direct Federal or State payments intended for economic stimulus or recovery. (iii) Amounts directly received by the family as a result of State refundable tax credits or State tax refunds at the time they are received.
(iv) Amounts directly received by the family as a result of Federal refundable tax credits and Federal tax refunds at the time they are received.
(v) Gifts for holidays, birthdays, or other significant life events or milestones (e.g., wedding gifts, baby showers, anniversaries).
(vi) Non-monetary, in-kind donations, such as food, clothing, or toiletries, received from a food bank or similar organization.
(vii) Lump-sum additions to net family assets, including but not limited to lottery or other contest winnings.
(25) Civil rights settlements or judgments, including settlements or judgments for back pay. (26) Income received from any account under a retirement plan recognized as such by the Internal Revenue Service, including individual retirement arrangements (IRAs), employer retirement plans, and retirement plans for self-employed individuals; except that any distribution of periodic payments from such accounts shall be income at the time they are received by the family.
(27) Income earned on amounts placed in a family's Family Self Sufficiency Account. (28) Gross income a family member receives through self-employment or operation of a business; except that the following shall be considered income to a family member:
(i) Net income from the operation of a business or profession. Expenditures for business expansion or amortization of capital indebtedness shall not be used as deductions in determining net income. An allowance for depreciation of assets used in a business or profession may be deducted, based on straight line depreciation, as provided in Internal Revenue Service regulations; and
(ii) Any withdrawal of cash or assets from the operation of a business or profession will be included in income, except to the extent the withdrawal is reimbursement of cash or assets invested in the operation by the family.
[88 FR 9657, Feb. 14, 2023]