AGENDA REPORT
City Council
MEETING
DATE:
August 26, 2026
PREPARED
BY:
Phillip Horn, Management
Analyst
DEPARTMENT
DIRECTOR:
Sylvester Mabry Jr.
DEPARTMENT: Public Works Department CITY
MANAGER:
Jennifer Campbell
SUBJECT:
Encinitas Fire Station 5 Remediation and Repairs Agreement RECOMMENDED ACTION:
1. Authorize the City Manager or her designee, in conjunction with the City Attorney, to execute an agreement for Fire Station 5 Remediation and Repairs for a total contract amount not-to-exceed $263,277 (Attachment 1).
2. Adopt Resolution 2026-67 titled, “A Resolution of the City Council of the City of Encinitas, California, Amending the Fiscal Year 2026-27 Budget” (Attachment 2).
ENVIRONMENTAL CONSIDERATIONS:
The action being considered by the City Council is exempt from the California Environmental Quality Act (CEQA) because it is not a “project” under Section 15378(b)(5) of CEQA Guidelines because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. The action is also exempt from CEQA under Section 15378(b)(5) of the CEQA Guidelines because it involves an organizational or administrative activity of the government that will not result in the direct or indirect physical change in the environment.
This item does not relate to the Climate Action Plan.
GENERAL PLAN/CITY COUNCIL FOCUS AREAS:
This item aligns with the following focus areas of the FY 2026-2027 City Council Work Plan:
• Public health and safety for the protection of life, property and the physical environment • Effective and reliable City services, infrastructure, and communications FISCAL CONSIDERATIONS:
Expenditures for the costs of remediation, repairs, and reconstruction at Fire Station 5 total $263,277. Council previously appropriated $175,000 for Fire Station 5 remediation and repairs 2026-08-26 Item #10H Page 1 of 20
under Facilities Remediation Project CF26G. Staff requests $88,277 to be funded from the unassigned General Fund balance. The City is currently working with its property insurance carrier to recover any allowable expenses. Any recovery from the City’s property insurance will be deposited into the 403 Facilities Maintenance Fund.
BACKGROUND:
Encinitas Fire Station 5 is located at 540 Balour Dr. In March 2025, Facilities staff identified a loose tile in the men’s restroom shower enclosure during a routine inspection. The City’s risk department was promptly notified, which lead to a follow up investigation. On April 18, 2025, test results confirmed the existence of moisture trapped within the wall of the men’s restroom.
The source of the mold was ultimately determined to be caused by deficiencies in the original shower pan waterproofing system installed during the facility’s construction. Due to the high frequency of use required for the nature of the fire department’s services, the affected areas experienced prolonged exposure to moisture, resulting in progressive damage over several years.
The issue, unforeseeable to anyone other than the original construction inspector, persisted unseen until the problem was detected.
Based on the initial assumption that the construction and waterproofing systems of both the men’s and women’s showers were similar, a comprehensive investigation was initiated to assess the condition of the women’s shower enclosure to determine whether the deficiencies identified in the men’s shower were also present in the women’s facility. The results of this investigation concluded that the women’s restroom was experiencing similar deficiencies, and additionally, that the moisture had also spread into the fire station’s training room.
The repair and reconstruction process has experienced delays primarily due to the investigative phase, cautious demolition approaches, unforeseen complications, efforts to maintain operational facilities for fire staff, and procurement lead times.
ANALYSIS:
During the inspection of the impacted areas, staff conducted a thorough forensic analysis in conjunction with the repair activities to accurately determine the root cause of the issue, ensuring that evidence was preserved for submission to the City’s insurance provider for potential claim recovery.
The investigation determined that improper installation of the shower pan flashing and sealing allowed water to infiltrate the walls over the facility’s lifespan, ultimately causing leaks into the women’s restroom and staff training room. This issue was only identified when a loose restroom tile prompted further investigation.
The impacted areas were professionally repaired, cleaned, and restored to ensure the preservation of the facility for continued emergency response to the public. Restoration included plumbing repairs and the replacement of walls, cabinetry, flooring, and tiles.
ATTACHMENT(S):
1. Encinitas Fire Station 5 Remediation and Repairs Contract Draft
2. Resolution 2026-67, titled “A Resolution of the City Council of the City of Encinitas Amending the Fiscal Year 2026-27 Budget”
2026-08-26 Item #10H Page 2 of 20
Gen Services & Maint (Non-Fed / Prev Wage) – 03/07/2024 – LD Page 1 of 15
GENERAL SERVICES AND MAINTENANCE CONTRACT
(Non-Federal/Prevailing Wage)
This agreement (hereinafter referred to as the “Agreement” or “Contract”) is made and entered into as of [____________] by the City of Encinitas, a municipal corporation, hereinafter referred to as “City”, and Belfor USA Group, a California C Corporation, hereinafter referred to as “Contractor”.
RECITALS
City requires Contractor to perform its scope of work generally described as:
Mold Remediation and Repair Services for Encinitas Fire Station 5 Contractor represents itself as possessing the necessary skills and qualifications to maintain the public works project required by City and possessing all required licenses and certifications.
NOW THEREFORE, in consideration of these recitals and the mutual covenants contained herein, City and Contractor agree as follows:
1.0 Contract Documents
1.1 The Contract Documents shall be deemed to be this Agreement, all documents attached and specifically referenced herein.
2.0 Contractor’s Obligations (Attachment A)
2.1 Contractor shall perform its scope of work that is described in Attachment “A”, which is attached hereto and incorporated herein as though fully set forth at length.
2.2 Contractor shall, at its own cost and expense, in a competent manner consistent with all applicable standards of care, furnish all labor, inspection, technical, administrative, professional and other personnel, all supplies and materials, equipment, tools, printing, vehicles, transportation, office space and facilities, and all tests, testing and analyses, calculations, and all other means and methods whatsoever, except as herein otherwise expressly specified to be furnished by City, necessary or proper to perform and complete the scope of work and provide the services required by this Agreement.
2.3 Contractor is hired to render those services necessary to perform the Scope of Work in a professional manner, and any payments made to Contractor are compensation fully for those services.
2.4 Contractor shall maintain throughout the full term of this Agreement all professional certifications and licenses required in order to comply with all city, state, and federal laws in the performance of this Agreement.
2.5 For the services to be performed, Contractor shall pay wages to Contractor’s employees according to the current “General Prevailing Wage Rates” issued by the Director of 2026-08-26 Item #10H Page 3 of 20
Gen Services & Maint (Non-Fed / Prev Wage) – 03/07/2024 – LD Page 2 of 15 the Department of Industrial Relations of the State of California and pursuant to California Labor Code Part 7, Chapter 1, Article 2, Sections 1770, 1771, 1773, 1773.1.
3.0 Extra Work
3.1 Contractor, in providing the services as set forth herein, shall not perform work and will not be paid for work in excess of the Agreement amount without first obtaining a fully executed written Change Order from City or its authorized designated representative. All requests for extra work shall be made in writing and submitted to City.
4.0 Payment For Services (Attachment B)
4.1 Contractor agrees not to raise prices for the original term of the Agreement.
Contractor’s payment for services, including fee schedule or other terms of compensation, is attached hereto as Attachment “B” and incorporated herein by this reference.
4.2 City agrees to compensate Contractor for the services provided under this Agreement, and Contractor agrees to accept in full satisfaction for such services, payment in accordance with Attachment “B”.
4.3 Contractor shall submit to City an invoice, on a monthly basis or as otherwise agreed, for the services performed pursuant to this Agreement. Each invoice shall itemize the services rendered during the billing period and the amount due. City shall pay all undisputed amounts included on the invoice. Once invoice is submitted and approved by the City, City payment will be made within 30 days of approval.
5.0 Term of Agreement
5.1 This Agreement shall be effective on and from the day, month and year of the execution of this document by City.
5.2 Term. The term of the Agreement is for a period commencing on the Execution Date by City and terminating December 31, 2027 (“Termination Date”) unless terminated earlier as set forth herein, or extended pursuant to Section 5.3 below.
5.3 Options to Extend. This Agreement may be extended for up to one additional one (1) year periods from the original termination date upon the execution of a written extension agreement, executed by both parties before the end of the previous term. Any increase in the fees or rates within for each optional renewal period shall be the lesser of two percent or the inflation rate as measured by fluctuations in the Consumer Price index, All Urban Consumers (C.P.I.-U) as published by the United States Department of Labor, Bureau of Labor Statistics, for the San Diego - Carlsbad Metropolitan Statistical Area. The average index of the C.P.I.-U for this calculation shall be for the twelve (12) months of the preceding year (January through December), or the fiscal year ended June 30th, whichever constitutes the most recently available data.
6.0 Termination of Agreement
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6.1 In the event of Contractor’s failure to prosecute, deliver, or perform the described services, the City may terminate this Contract by notifying Contactor by certified mail of said termination. Thereupon, Contractor shall cease work and within five (5) working days: (1) assemble all materials and records prepared or obtained in the performance of this Agreement and deliver said documents to the City and (2) place all work in progress in a safe and protected condition. The City Manager shall make a determination of the percentage of work which Contractor has performed which is usable and of worth to the City. Based upon that finding, the City shall determine any final payment due to Contractor.
6.2 This Contract may be terminated by the City, for convenience and without cause, upon the giving of written notice to the Contractor. Contractor shall: (1) assemble all materials and records prepared or obtained in the performance of this Contract and deliver said documents and materials to the City and (2) place all work in progress in a safe and protected condition. The City Manager shall make a determination of the percentage of work which Contractor has performed which is usable and of worth to the City. Based upon that finding, the City shall determine any final payment due to Contractor.
7.0 Independent Contractor
7.1 Contractor shall perform the services provided for herein in a manner of Contractor’s own choice, as an independent contractor and in pursuit of Contractor’s independent calling, and not as an employee of City. Contractor shall be under control of City only as to the result to be accomplished and the personnel assigned to the Project. However, Contractor shall confer with City as required to perform this Agreement.
7.2 If Contractor subcontracts any of the work to be performed under this Agreement, Contractor shall be as fully responsible to City or the acts and omissions of Contractor’s subcontractor and of the persons either directly or indirectly employed by the subcontractor, as Contractor is for the acts and omissions of persons directly employed by Contractor. Nothing contained in the Agreement shall create any contractual relationship between any subcontractor of Contractor and City. Contractor shall bind every subcontractor by the terms of the Agreement applicable to Contractor’s work, including indemnity and insurance requirements.
8.0 No Assignment of Agreement
8.1 Contractor has no authority or right to assign this Agreement or any part thereof or any monies due thereunder without first obtaining the prior written consent of City.
9.0 No Verbal Agreement or Conversation
9.1 No verbal agreement or conversation with any officers, elected officials, appointed officials, volunteers, agent or employee of City, either before, during or after the execution of this Agreement, shall effect or modify any of the terms or obligations herein contained nor such verbal agreement or conversation entitle Contractor to any additional payment whatsoever under the terms of this Agreement.
10.0 Disputes
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Gen Services & Maint (Non-Fed / Prev Wage) – 03/07/2024 – LD Page 4 of 15
10.1 If a dispute should arise regarding the performance of this Agreement, the following initial dispute resolution procedures shall be used:
A. Within twenty (20) City working days after a dispute regarding the performance of this Agreement arises, it shall be reduced to writing at staff level by the complaining party setting forth the nature of the dispute in detail, along with all pertinent back-up documentation in support. The writing shall be delivered to the receiving party by first class mail or personal delivery directly to the party’s project manager, along with recommended methods of resolution.
B. The party receiving the letter shall reply to the letter with a detailed response, along with a recommended method of resolution, if any, within ten (10) City working days of receipt of the letter.
10.2 If the dispute is not resolved at staff level in accordance with Section 10.1, within five (5) City working days of the receiving party response (or longer if agreed between the parties), the aggrieved party, through its respective project manager shall deliver to the City Manager’s office a letter outlining the dispute for the City Manager’s review. The receiving party may submit further response, if required, to the City Manager within five (5) city working days thereafter. The City Manager, at his/her sole discretion may respond as he/she deems appropriate, including recommendations for resolution, discussion or rejection of the dispute within fifteen (15) working days of receipt of the complaint.
10.3 If the dispute remains unresolved and the parties have exhausted the procedures outlined in this section, the parties may then seek remedies available to them under this Agreement and at law, including, but not limited to, under the termination procedures. This provision does not relieve Contractor of its obligation and Contractor is required to timely comply with all applicable provisions of the Government Claims Act before initiating any legal proceeding against City.
11.0 Hold Harmless
11.1 To the greatest extent allowed by law, Contractor shall defend and indemnify and hold City, its officials, officers, agents, employees, and representatives free and harmless from any and all claims, demands, negligence (including the active or passive negligence of City as allowed by law), causes of action, costs, expenses, liabilities, losses, damages or injuries, in law or equity, regardless of whether the allegations are false, fraudulent, or groundless, to property or persons, including wrongful death, to the extent arising out of or incident to any acts, omissions, negligence or willful misconduct of Contractor, its officials, officers, employees, agents, consultants, subcontractors and contractors arising out of or in connection with the performance of the scope of work or this Agreement, including without limitation the payment of all damages and attorney’s fees, fines, penalties and other related costs and expenses. The only limitations on this provision shall be those imposed by Civil Code Section 2782 or other applicable provisions of law.
11.2 Contractor’s defense obligation (with counsel approved by City), shall arise immediately upon City’s tender, at Contractor’s own cost, expense and risk, any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against City, its officials, officers, agents, employees and representatives, notwithstanding whether liability is or can be established against City. Contractor shall pay and satisfy any judgment, award or decree that may be rendered against City, its officials, officers, employees, agents, employees and representatives, in any such suit, action or other legal proceeding. 2026-08-26 Item #10H Page 6 of 20
Gen Services & Maint (Non-Fed / Prev Wage) – 03/07/2024 – LD Page 5 of 15 Contractor shall reimburse City, its officials, officers, agents, employees and representatives for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. The only limitations on this provision shall be those imposed by Civil Code Section 2782 or other applicable provisions of law.
11.3 Contractor’s defense and indemnity obligations herein include, but are not limited to damages, fines, penalties, attorney’s fees and costs arising from claims under the Americans With Disabilities Act (ADA) or other federal or state disability access or discrimination laws arising from Contractor’s Work during the scope of work or after the Project is complete, as the result of defects or negligence in Contractor’s services.
11.4 Contractor’s obligation herein includes, but is not limited to, alleged defects in the services performed; alleged defects in the materials or services furnished under the Agreement; alleged injury to persons or property; alleged inverse condemnation of property as a consequence of the performance of the work or the improvement; any regulatory violations (including but not limited to Stormwater Pollution Control BMP/Erosion Control and regulatory requirements); and any accident, loss or damage to City property or third party liability prior to the acceptance of same by City.
11.5 By inspecting, approving or accepting the services performed by Contractor, City shall not have waived the protections afforded herein to City and City’s officers, elected officials, appointed officials, volunteers, employees and agents or diminished the obligation of Contractor who shall remain obligated in the same degree to indemnify and hold City and City’s officers, elected officials, appointed officials, volunteers, employees and agents, harmless as provided above.
12.0 Insurance
12.1 Commercial General Liability Insurance. Contractor shall obtain and maintain for the full term of this Agreement, comprehensive general liability and property damage insurance, or commercial general liability insurance, from an insurance company approved by City having a Best Rating of A-: VII or better and authorized by the Insurance Commissioner of the State of California Department of Insurance to be transacting business in the State of California, in the following minimum limits:
General liability (Including operations, Products and completed operations) Combined Single Limit Per Occurrence $2,000,000.00
General Annual Aggregate $5,000,000.00
The limits of insurance shall not relieve Contractor from liability in excess of such coverage, nor shall it limit Contractor’s indemnification obligations to City, and shall not preclude City from taking such other actions available to City under other provisions of the Agreement, Contract Documents, or law.
Contractor shall make certain that any and all subcontractors hired by Contractor are insured in accordance with this Agreement. If any subcontractor’s coverage does not comply with the foregoing provisions, Contractor shall indemnify and hold City harmless from any damage, loss, cost, or expense, including attorney’s fees, incurred by City as a result thereof.
All general liability policies shall be written to apply to all bodily injury, including death, property damage, personal injury, owned and non-owned equipment, blanket contractual liability, completed operations liability, explosion, collapse, under-ground excavation, removal of lateral support, and other covered loss, occurring during the policy term, and shall specifically insure the performance by 2026-08-26 Item #10H Page 7 of 20
Gen Services & Maint (Non-Fed / Prev Wage) – 03/07/2024 – LD Page 6 of 15 Contractor. Contractor may combine primary, umbrella, and as broad as possible excess liability coverage to achieve the total limits indicated above. Any umbrella or excess liability policy shall include the additional insured endorsement described in this Agreement.
12.2 Automobile Liability Insurance. Such insurance shall provide coverage for bodily injury and property damage including coverage for non-owned and hired vehicles, in a form and with insurance companies acceptable to City for bodily injury and property damage in an amount, at least, one million dollars ($1,000,000) per person per accident.
12.3 Workers’ Compensation Insurance. Contractor shall provide, during the term of this Agreement, workers’ compensation insurance for all of the employees engaged in Work under this Agreement, on or at any work site, and, in case of any sublet Work, Contractor shall require each subcontractor similarly to provide workers’ compensation insurance for all of the latter’s employees as proscribed by State law. Any class of employee or employees not covered by a subcontractor’s insurance shall be covered by Contractor’s insurance. Contractor is required to secure payment of compensation to its employees in accordance with the provisions of Section 3700 of the Labor Code in an amount of, at least, one million dollars ($1,000,000) per person per accident and shall contain a Waiver of Subrogation in favor of City.
Contractor shall assume the immediate defense of and indemnify and save harmless City and its officers and employees, agents, and consultants from all claims, loss, damage, injury, and liability of every kind, nature, and description brought by any person employed or used by Contractor, or any subcontractors, to perform the scope of work under this Agreement regardless of responsibility or negligence.
12.4 Employer’s Liability Insurance. Contractor shall provide during the life of this Agreement, Employer’s Liability Insurance, including Occupational Disease, in the amount of, at least, one million dollars ($1,000,000.00) per person per accident. Contractor shall provide City with a certificate of Employer’s Liability Insurance. Such insurance shall comply with the provisions of the Agreement and Contract Documents. The policy shall be endorsed, if applicable, to provide a Borrowed Servant/Alternate Employer Endorsement and contain a Waiver of Subrogation in favor of City.
12.5 Form, Proof of Insurance. Any insurance carrier providing insurance coverage required by the Agreement and Contract Documents shall be admitted to and authorized to do business in the State of California unless waived, in writing, by City’s Risk Manager. Carrier(s) shall have an A.M. Best rating of not less than an A-: VII or better. Insurance deductibles or self-insured retentions must be declared by Contractor, and such deductibles and retentions shall have the prior written consent from City.
12.6 Additional Insured Requirement. City, its officers, elected officials, employees, contractors, construction managers, architect and volunteers are to be covered as additional insureds by endorsement under the General Liability, Automobile Liability, Employers Liability and Workers Compensation Liability insurance policies. The General Liability policy shall be evidenced by an additional insured endorsement, using form ISO CG 20-10-10-01 and GC 20-37-10-01 or the exact equivalent.
12.7 Other Insurance Requirements. The Certificate(s) and policy(ies) of insurance shall provide no less than thirty (30) days written notice be given to City prior to any material modification or cancellation of such insurance. In the event of a material modification or cancellation of coverage, City may terminate or Stop Work pursuant to this Agreement and Contract Documents, unless City 2026-08-26 Item #10H Page 8 of 20
Gen Services & Maint (Non-Fed / Prev Wage) – 03/07/2024 – LD Page 7 of 15 receives, prior to such effective date, another properly executed original Certificate of Insurance and original copies of endorsements or certified original policies, including all endorsements and attachments evidencing coverages and the insurance as required is in full force and effect.
Contractor shall not take possession of any work site or commence its scope of work under this Agreement until City has been furnished original Certificate(s) of Insurance and certified original copies of Endorsements and any and all other attachments as required in this Agreement. The original Endorsements for each policy and the Certificate(s) of Insurance shall be signed by an individual authorized by the insurance carrier to do so on its behalf.
It is understood and agreed to by the parties and the insurance company(s), that the Certificate(s) of Insurance and policies shall be construed as primary, and City’s insurance and/or deductibles and/or self-insured retentions or self-insured programs shall not be construed as contributory.
13.0 Payroll Records
13.1 Consistent with Labor Code Section 1776, Contractor and each subcontractor shall maintain accurate weekly certified payroll records showing the name, address, social security number, work classification, straight time and overtime hours paid each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker or other employee employed in connection with the work. Contractor shall certify under penalty of perjury that records maintained and submitted by Contractor are true and accurate. Contractor shall also require subcontractor(s) to certify weekly payroll records under penalty of perjury.
13.2 The payroll records described herein shall be certified and submitted by Contractor at a time designated by City. Contractor shall also provide the following:
1) A certified copy of the employee’s payroll records shall be made available for inspection or furnished to such employee or his or her authorized representative on request.
2) A certified copy of all payroll records described herein shall be made available for inspection or furnished upon request of the Department of Industrial Relations (“DIR”).
The certified payroll records shall be on forms provided by the Division of Labor Standards Enforcement (“DLSE”) of the DIR or shall contain the same information as the forms provided by the DLSE.
Any copy of records made available for inspection and furnished upon request to the public shall be marked or obliterated in such a manner as to prevent disclosure of an individual’s name, address, and social security number. The name and address of Contractor or any subcontractor shall not be marked or obliterated.
13.3 Pursuant to Labor Code Section 1775, Contractor and any subcontractor under the Agreement shall, as a penalty to the state or political subdivision on whose behalf the contract is made or awarded, forfeit not more than two hundred dollars ($200) for each calendar 2026-08-26 Item #10H Page 9 of 20
Gen Services & Maint (Non-Fed / Prev Wage) – 03/07/2024 – LD Page 8 of 15 day, or portion thereof, for each worker paid less than the prevailing wage rates as determined by the DIR for the work or craft in which the worker is employed for any public work done under the Agreement by Contractor or, except as provided by statute, by any subcontract under the Agreement. Upon the request of the DIR, such penalties shall be withheld from Agreement payments.
14.0 Prevailing Wage And Enforcement Compliance
14.1 This is a prevailing wage contract and prevailing wage rates for this locality and project as determined by the Director of the DIR apply, pursuant to labor code section 1770, et. Seq. A copy of the prevailing wage rates shall be posted on the job site by Contractor. A schedule of prevailing wage rates is available for review at City’s offices or may be found on the internet at http://www.dir.ca.gov/Public-Works/Prevailing-Wage.html. Contractor shall be required to pay at least the wage rates set forth in that schedule. Certified Payroll records shall be maintained by Contractor and copies of the certified payroll shall be electronically sent to the DIR and be delivered to City at the end of each month during the entire duration of the project.
Contractor is subject to compliance monitoring and enforcement by the DIR. Subject to exceptions as set forth in Labor Code section 1771.1, Contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any contract for public work, as defined by statute, unless it is currently registered and qualified to perform public work pursuant to Labor Code Section 1725.5.
City may not accept a bid nor any contract or subcontract entered into without proof of Contractor or subcontractor’s current registration to perform public work pursuant to Section 1725.5. For more information, go to http://www.dir.ca.gov/Public-Works/Certified-Payroll-Reporting.html.
Contractor shall be aware of the requirements of Labor Code Sections 1720 et seq. and 1770 et seq., as well as California Code of Regulations, Title 8, Section 16000 et seq. (“Prevailing Wage Laws”), which require the payment of prevailing wage rates and the performance of other requirements on certain “public works” and “maintenance” projects. Since this Project involves an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, and since the total compensation is $1,000 or more, Contractor agrees to fully comply with such Prevailing Wage Laws. Contractor shall obtain a copy of the prevailing rates of per diem wages at the commencement of this Agreement from the website of the Division of Labor Statistics and Research of the DIR located at www.dir.ca.gov/dlsr/. In the alternative, Contractor may view a copy of the prevailing rates of per diem wages at City’s offices. Contractor shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to perform work on the Project available to interested parties upon request and shall post copies at Contractor’s principal place of business and at the Project site. Contractor shall defend, indemnify and hold City, its elected officials, officers, employees and agents free and harmless from any claims, liabilities, costs, penalties or interest arising out of any failure or allege failure to comply with the Prevailing Wage Laws.
14.2 Contractor and each subcontractor shall forfeit as a penalty to City not more than two hundred dollars ($200) for each calendar day, or portion thereof, for each worker paid less than the stipulated prevailing wage rate for any work done by him, or by any subcontractor under him, in violation of the provisions of the Labor Code. The difference between such stipulated prevailing wage rate and the amount paid to each worker for each calendar day or portion thereof for which each worker was paid less than the stipulated prevailing wage rate shall be paid to each 2026-08-26 Item #10H Page 10 of 20
Gen Services & Maint (Non-Fed / Prev Wage) – 03/07/2024 – LD Page 9 of 15 worker by Contractor. Contractor shall post, at appropriate conspicuous points on the Project site, a schedule showing all determined general prevailing wage rates and all authorized deductions, if any, from unpaid wages earned.
15.0 Employment Of Apprentices
15.1 Contractor’s attention is directed to the provisions of Sections 1777.5, 1777.6, and 1777.7 of the Labor Code concerning employment of apprentices by Contractor or any subcontractor. Contractor shall obtain a certificate of apprenticeship before employing any apprentice pursuant to Section 1777.5, 1777.6, and 1777.7 of the Labor Code. Information relative to apprenticeship standards, wage schedules, and other requirements may be obtained from the Director of the DIR, the Administrator of Apprenticeships, San Francisco, California, or from the Division of Apprenticeship Standards and its branch offices.
16.0 Nondiscrimination/Equal Employment Opportunity
16.1 Pursuant to Labor Code Section 1735 and other applicable provisions of law, Contractor and its subcontractors shall not discriminate against any employee or applicant for employment because of race, color, religion, sex, national origin, age, political affiliation, marital status, or handicap on this Project. Contractor will take affirmative action to ensure that employees are treated during employment or training without regard to their race, color, religion, sex, national origin, age, political affiliation, marital status, or handicap.
17.0 Labor/Employment Safety
17.1 Contractor shall maintain emergency first aid treatment for its employees which complies with the Federal Occupational Safety and Health Act of 1970 (29 U.S.C. § 651 et seq.), and California Code of Regulations, Title 8, Industrial Relations Division 1, Department of Industrial Relations, Chapter 4. Contractor shall further comply with all other federal, state or local safety regulations, as they may apply to its scope of work. City shall not be responsible for inspection of Contractor’s safety practices or for safety violations caused by Contractor.
18.0 Conflict of Interest
18.1 Contractor warrants and covenants that it presently has no interest in, nor shall any interest be hereinafter acquired in, any matter which will render the services required under the provisions of this Agreement a violation of any applicable state, local, or federal law, including, but not limited to, Government Code section 1090. If any principal provider of services is a “consultant” for the purposes of the Fair Political Practices Act (Gov. Code § 81000 et seq.), each such person shall comply with Form 721 Statement of Economic Interests filing requirements in accordance with state or City local Conflict of Interest Code. In addition, if any other conflict of interest should nevertheless hereinafter arise, Contractor shall promptly notify City of the existence of such conflict of interest so that City may determine whether to terminate this Agreement.
19.0 General Provisions
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19.1 Contractor agrees and hereby stipulates that the proper venue and jurisdiction for resolution of any disputes between the parties arising out of this Agreement is San Diego County, North County Judicial Branch, California.
19.2 Waiver of a breach or default under this Agreement shall not constitute a continuing waiver of a subsequent breach of the same or any other provision under this Agreement.
19.3 If any term or portion of this Agreement is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall continue in full force and effect.
19.4 In the event of an inconsistency or conflict between this Agreement and any Attachment hereto, the terms set forth in this Agreement shall prevail. If, and to the extent this Agreement incorporates by reference any provision of any document, such provision shall be deemed a part of this Agreement. Nevertheless, if there is any inconsistency or conflict among the terms and conditions of this Agreement and those of any such provision or provisions so incorporated by reference, this Agreement shall govern and prevail over the document referenced.
20.0 Contractor’s Books and Records/Audit Right
20.1 Contractor shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, and other records or documents evidencing or relating to charges for services, or expenditures and disbursements charged to City for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Contractor.
20.2 Contractor shall maintain all documents and records which demonstrate performance under this Agreement for a minimum period of three (3) years, or for any longer period required by law, from the date of termination or completion of this Agreement.
20.3 Any records or documents required to be maintained pursuant to this Agreement shall be made available for inspection or audit, at any time during regular business hours, upon written request by the City Attorney, City Council, City Auditor, City Manager, or a designated representative of any of these officers. Copies of such documents shall be provided to City for inspection when it is practical to do so. Otherwise, unless an alternative is mutually agreed upon, the records shall be available for review and copying at Contractor’s address indicated for receipt of notices in this Agreement.
20.4 City may, by written request by any of the above-named officers, require that custody of the records be given to City and that the records and documents be maintained in the City Manager’s office. Access to such records and documents shall be granted to any party authorized by Contractor’s representatives, or Contractor’s successor in interest.
21.0 Written Notification
21.1 Any notice, demand, request, consent, approval or communication that either party desires or is required to give to the other party shall be in writing and either served personally or sent by prepaid, first class mail. Any such notice, demand, etc. shall be addressed to the other party at 2026-08-26 Item #10H Page 12 of 20
Gen Services & Maint (Non-Fed / Prev Wage) – 03/07/2024 – LD Page 11 of 15 the address set forth below. Either party may change its address by notifying the other party of the change of address. Notice shall be deemed communicated within 48 hours from the time of mailing if mailed as provided in this section.
If to City:
City of Encinitas
Attn: Facilities Manager
160 Calle Magdalena
Encinitas, CA 92024
If to Contractor:
Belfor USA Group, Inc.
9060 Activity Road, Suite A
San Diego, CA 92101
22.0 Contractor’s Awareness And Compliance With The Americans With Disabilities Act Of 1990
22.1 Contractor certifies that Contractor is aware of the requirements of the Americans with Disabilities Act of 1990 (42 U. S. Code §12101) and has complied with and will comply with these requirements, including but not limited to verifying compliance of their contractors, consultants, agents and employees.
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Gen Services & Maint (Non-Fed / Prev Wage) – 03/07/2024 – LD Page 12 of 15
23.0 Execution of Agreement
The persons executing this Agreement on behalf of the Parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said parties and that by doing so the parties hereto are formally bound to the provisions of this Agreement.
BELFOR USA GROUP, INC. CITY OF ENCINITAS
By: __________________________ By: __________________________ Rachael Manos (Date) Jennifer Campbell (Date)
__________________________ City Manager________
General Counsel (Title)
APPROVED AS TO FORM
________________________________
Ajit Thind, City Attorney (Date)
NOTE: Pursuant to California Corporations Code Section 313, if Contractor is a corporation or nonprofit organization, this Contract must be signed by (a) the Chairperson of the Board, President or Vice-President and (b) the Secretary any Assistant Secretary, the Chief Financial Officer or any Assistant Treasurer.
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Gen Services & Maint (Non-Fed / Prev Wage) – 03/07/2024 – LD Page 13 of 15 ATTACHMENT “A”
CONTRACTOR’S SCOPE OF WORK
Contractor: BELFOR USA GROUP, INC.
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Gen Services & Maint (Non-Fed / Prev Wage) – 03/07/2024 – LD Page 14 of 15 Contractor’s Initials: ______
Date: _________________
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Gen Services & Maint (Non-Fed / Prev Wage) – 03/07/2024 – LD Page 15 of 15 ATTACHMENT “B”
PAYMENT OF SERVICES
Contractor: BELFOR USA GROUP, INC.
Once invoice is submitted and approved by the City, City payment will be made within 30 days of approval. Total contract cost not-to-exceed $263,277.
Contractor’s Initials: ______
Date: __________________
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RESOLUTION 2026-67
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ENCINITAS, CALIFORNIA, AMENDING THE FISCAL YEAR 2026-27 BUDGET
WHEREAS, on June 17, 2026, the City Council of the City of Encinitas adopted Resolution Number 2026-48 adopting the budget for Fiscal Year 2026-27; and WHEREAS, a review has determined that changes in anticipated revenues and/or expenditures of the City of Encinitas necessitates amendments to the appropriations for Fiscal Year 2026-27; and
WHEREAS, budgeted expenditures do not exceed anticipated revenue and available fund balance; and
WHEREAS, the City Council has reviewed the proposed Fiscal Year 2026-27 budget amendments.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Encinitas, California, that the budget amendments for Fiscal Year 2026-27 as contained in Exhibit A to this resolution are hereby adopted.
NOW, THEREFORE, BE IT FURTHER RESOLVED that the action being considered by the City Council is exempt from the California Environmental Quality Act (CEQA) because it is not a “project” under Section 15061(b)(3) of the CEQA Guidelines because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. The action is also exempt from CEQA under Section 15378(b)(5) of the CEQA Guidelines because it involves an organizational or administrative activity of government that will not result in the direct or indirect physical change in the environment.” PASSED, APPROVED AND ADOPTED this 26th day of August, 2026 by the City Council of the City of Encinitas, State of California.
______________________________
Bruce Ehlers, Mayor
ATTEST:
______________________________
Pete Weichers, City Clerk
APPROVED AS TO FORM:
_____________________________
Ajit Thind, City Attorney
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CERTIFICATION: I, Pete Weichers, City Clerk of the City of Encinitas, California, do hereby certify under penalty of perjury that the foregoing Resolution was duly adopted at a regular meeting of the City Council on the 26th day of August, 2026 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
______________________________
Pete Weichers, City Clerk
2026-08-26 Item #10H Page 19 of 20
Exhibit A
Resolution 2026-67
Proposed Budget Increase or (Decrease)
# Fund-Name Org Obj Comments Revenue Expenditures Transfer In Transfer Out A. Staff Recommendation: Fund Facilities Remediation for Fire Station 5 (CF26G)
1. 101-GENERAL FUND 10190999 498.2 CF26G 101:403 FS5 Remediation 88,277.00
2. 403-FACILITIES CAP MAINT 40300000 398.2 88,277.00
3. 403-FACILITIES CAP MAINT 40395101 582 88,277.00
4. 101-GENERAL FUND 10100000 394 CF26G FS5 Addn'l Property Claim 63,000.00 Total 63,000.00 88,277.00 88,277.00 88,277.00
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