AGENDA REPORT
City Council
MEETING
DATE:
September 23, 2026
PREPARED
BY:
Ellaine Esteller
Engineer I
DEPARTMENT
DIRECTOR:
Dan Nutter, PE
DEPARTMENT: Engineering CITY
MANAGER:
Jennifer Campbell
SUBJECT:
Authorization to award a Construction Contract to Nu Line Technologies, LLC for the FY 2026-27 Drainage Rehabilitation Project (CD27A) and Lake Drive Storm Drain Lining Project (CD27B) RECOMMENDED ACTIONS:
1. Authorize the City Manager, or designee, in consultation with the City Attorney, to execute a construction contract agreement in substantial form as contained in Attachment 2, with Nu Line Technologies, LLC and any necessary amendments and time extensions in the amount of $1,091,500 plus a contingency of $163,725 for a total not-to-exceed construction contract amount of $1,255,225 to construct the Base Bid only.
2. Adopt City Council Resolution No. 88, titled “A Resolution of the City Council of the City of Encinitas, California, Amending the Fiscal Year 2026-27 Budget” (Attachment 3).
ENVIRONMENTAL CONSIDERATIONS:
Pursuant to the California Environmental Quality Act (CEQA), an Environmental Initial Study (IS) was conducted for the Lake Drive Storm Drain Project, which determined that the proposed project may have potentially significant environmental effects related to biological resources, geology and soils, cultural resources, and tribal cultural resources. Specific mitigation measures were determined to avoid or mitigate the potential significant environmental impacts to below established levels of significance. A Mitigated Negative Declaration (MND) and Mitigation Monitoring and Reporting Program (MMRP) was prepared and adopted by the Planning Commission (PC Resolution No. 2026-15). A Notice of Determination was filed with the State Clearing House (SCH#2025110169) and County Clerk Office (2026-000567). All mitigation measures applicable to the Lake Drive Storm Drain Lining Project will be implemented.
The FY 2026-27 Drainage Rehabilitation Project is Categorically Exempt (CE) from the California Environmental Quality Act (CEQA) pursuant to Section 15302 (c) of the CEQA Guidelines. This section exempts the replacement and reconstruction of existing facilities that will substantially have the same purpose and capacity as the structure being replaced. None of the exceptions in Section 15300.2 of the CEQA Guidelines are applicable to the project. 2026-09-23 Item #10H Page 1 of 25
This item does not relate to the Climate Action Plan.
GENERAL PLAN/CITY COUNCIL FOCUS AREAS:
This item relates to FY 2026-27 City Council Work Plan Focus Area 2, Effective and Reliable City Services, Infrastructure, and Communications.
FISCAL CONSIDERATIONS:
The Fiscal Year 2026-27 Capital Budget adopted by City Council on June 17, 2026, included a $500,000 appropriation to the FY 2026-27 Annual Drainage Repairs Project (CD27A) and a $650,000 appropriation to the Lake Dr Storm Drain Lining Project (CD27B). Staff included both projects within the same construction bid package to benefit from economies of scale.
The recommended construction contract award is $1,091,500, plus a contingency of $163,725 for a not to exceed contract total of $1,255,225. Including construction management and inspection (CM&I) services, the estimated construction phase cost is $1,410,000 as shown in the table below. There is sufficient funding to accommodate the work associated with the FY 2026-27 Annual Drainage Repairs Project (CD27A); however, an additional $260,000 is needed to fund the work associated with the Lake Dr Storm Drain Lining Project (CD27B). The proposed budget amendment appropriates $260,000 from the General Fund Unassigned Fund balance to the Lake Dr Storm Drain Lining Project (CD27B) to fully fund construction and CM&I services.
FY 2026-27 Drainage Rehabilitation Project (CD27A) and
Lake Drive Storm Drain Lining Project (CD27B)
Description Total Budget
Construction Contract $1,091,500
Construction Management & Inspection
Services
$154,775
Construction Contingency $163,725
Total Construction Cost $1,410,000
Staff recommends awarding the project with the base bid only.
BACKGROUND:
The City owns and maintains an extensive storm drainage system consisting of approximately 1,789 storm drain structures and approximately 65 miles of underground pipes comprised of over 4,000 pipe segments. Prior to the City’s incorporation, storm drain pipe systems were built using corrugated metal pipe (CMP). The ages of the storm drain pipelines range from new to over 75 years old for some of the communities in Encinitas. Due to age and corrosive soils, several storm drain pipes have corroded and deteriorated and require rehabilitation or replacement to maintain the City’s drainage system. The City’s Operation and Maintenance (O&M) staff perform regular citywide cleaning of the storm drain system of debris and sediment; however, pipes throughout the network require additional maintenance.
In recent years, the City has experienced major emergency drainage projects that resulted in 2026-09-23 Item #10H Page 2 of 25
replacements and rehabilitation of storm drain infrastructure. To prevent further damage and protect existing assets, City Council has tasked staff with identifying and assessing the condition of all underground infrastructure and developing a five-year capital maintenance program to properly budget and maintain the citywide storm drain system.
On January 21, 2026, City Council authorized the award of a contract for the Storm Drain Condition Assessment Project (CD26B). The consultant is contracted to identify, inspect, and capture videos of underground storm drainpipes throughout the City. As an added action, City Council requested that staff identify pipes in the network that are a high priority for rehabilitation or replacement. City staff is maintaining an ongoing list of pipe segments that require critical action based on a risk-based assessment, which reviews the severity of the impacts the pipe may present should the pipe fail. The list contains maintenance recommendations per segment depending on the pipe’s condition and its level of deterioration.
On June 17, 2026, City Council approved the FY 2026-27 CIP Budget, which allocated funding to rehabilitate storm drain pipes within Lake Drive canyon, and the highest priority pipes identified to-date from the Condition Assessment inspections. The budget allocated $500,000 to CD27A and $650,000 to CD27B.
On August 12, 2026, City Council approved the design and authorized advertisement for construction bids for the FY 2026-27 Drainage Rehabilitation Project (CD27A) and Lake Drive Storm Drain Lining Project (CD27B).
On August 19, 2026 the City issued a Public Notice inviting bids for the FY 2026-27 Drainage Rehabilitation Project (CD27A) and Lake Drive Storm Drain Lining Project (CD27B) project with a bid opening on September 16, 2026. The project plans approved by Council were separated into a base bid and 4 additive alternates. The base bid consists of the Lake Drive repairs and nine (9) of the highest priority segments proposed for rehabilitation. The four (4) additive alternates are additional segments requiring rehabilitation, but the City needs to ensure adequate budget to award the base bid at a minimum. The four (4) additive alternates are described below:
Additive Alternate 1 (AA 1): Avocet Court Storm Drain Repair Additive Alternate 2 (AA 2): Cerro Street Storm Drain Repair Additive Alternate 3 (AA 3): Pariva Drive Storm Drain Repair Additive Alternate 4 (AA 4): Hurtsdale Avenue Storm Drain Repair ANALYSIS:
When soliciting for construction bidders, the Engineering Department is required by California Public Contract Code to select the lowest responsible and responsive bidder on the solicitation.
The City received two (2) bids for ENG BID 26-04 and the results are summarized in the table below:
2026-09-23 Item #10H Page 3 of 25
FY2026-27 Drainage Rehabilitation Project (CD27A) and
Lake Drive Storm Drain Lining Project (CD27B)
Project Bid Results
Bidder Base Bid AA 1 AA 2 AA 3 AA 4
Nu Line
Technologies,
LLC
$1,091,500 $98,475 $189,500 $171,550 $75,975
Vortex Services,
LLC dba Sancon
Technologies
$1,201,900 $126,300 $291,400 $247,030 $88,870
After careful evaluation of bids received, Staff determined that Nu Line Technologies, LLC was the lowest responsive and responsible bidder. Staff recommends awarding a construction contract for the Base Bid for the FY 2026-27 Drainage Rehabilitation Project (CD27A) and Lake Drive Storm Drain Lining Project (CD27B). If the recommended action is approved, construction is expected to begin in November of 2026 and be completed in January 2027.
ATTACHMENTS:
1. Vicinity Map
2. Construction Contract with Nu Line Technologies, LLC for the FY 2026-27 Drainage Rehabilitation Project (CD27A) and Lake Drive Storm Drain Lining Project (CD27B)
3. City Council Resolution No. 2026-88, titled “A Resolution of the City Council of the City of Encinitas, California, Amending the Fiscal Year 2026-27 Budget” 2026-09-23 Item #10H Page 4 of 25
ATTACHMENT 1
FY 2026-27 Annual Drainage Repairs Project (CD27A & CD27B) Vicinity Map
NTS
2026-09-23 Item #10H Page 5 of 25
ATTACHMENT 2
D-1
CITY OF ENCINITAS
FY 2026-27 STORM DRAIN REHABILITATION PROJECT AND LAKE DRIVE STORM
DRAIN LINING
CD27A & CD27B
CONTRACT
(To be executed by successful bidder after Award)
THIS CONTRACT is made this _____ day of _____ 2026, in the County of San Diego, State of California, by and between the City of Encinitas hereinafter called “City”, and Nu-Line Technologies, LLC, hereinafter called “Contractor”.
Whereas the City completed project design for FY 2026-27 DRAINAGE REHABILITATION PROJECT AND LAKE DRIVE STORM DRAIN LINING, CD27A & CD27B, “Project” and advertised it for construction bids; and
Whereas the Contractor submitted lowest responsive and responsible bid for the Project; and Whereas the work to be completed is specified in the following contract documents: the Project Plans, Specifications, Standard Specifications, incorporated Specifications, General and Special Provisions, Addenda, Reference Drawings, Permits and Environmental Documents.
The City and the Contractor agree as follows:
ARTICLE 1. SCOPE OF WORK. The Contractor shall perform all Project work within the time stipulated in the Contract and shall provide all labor, materials, equipment, tools, utility services, and transportation to complete all the Project work required in strict compliance with the Contract Documents as specified in Article 5 below for the following Project:
FY 2026-27 STORM DRAIN REHABILITATION PROJECT AND LAKE DRIVE STORM
DRAIN LINING
CD27A & CD27B
The Contractor and its surety shall be liable to City for any damages arising as a result of the Contractor’s failure to comply with this obligation.
ARTICLE 2. TIME FOR COMPLETION. The Work shall begin on the date stated in City’s Notice to Proceed. The Contractor shall complete all Project work for the base bid required by the Contract Documents within twenty-five (25) Working Days.
By its signature hereunder, Contractor agrees the time for completion set forth above is adequate and reasonable to complete the Work.
ARTICLE 3. CONTRACT PRICE. City shall pay to the Contractor as full compensation for the performance of the Contract, subject to any additions or deductions as provided in the Contract Documents, and including all applicable taxes and costs, the sum of One Million Ninety-One 2026-09-23 Item #10H Page 6 of 25
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Thousand Five Hundred Dollars ($1,091,500). Payment shall be made as set forth in the General Conditions.
ARTICLE 4. LIQUIDATED DAMAGES. It is agreed that the Contractor shall pay to the City of Encinitas the sum of $3,600.00 (three thousand six hundred) per each calendar day of unexcused project delay in completing the work in excess of the number of working days prescribed above as Liquidated Damages and not as a penalty or forfeiture. In the event this is not paid, the Contractor agrees City may deduct that amount from any money due or that may become due the Contractor under the Contract. This Article does not exclude recovery of other damages specified in the Contract Documents.
ARTICLE 5. COMPONENT PARTS OF THE CONTRACT DOCUMENTS. The “Contract Documents” which form this Contract include the following: the entire Contract Documents, Specifications and Standard Drawings bid book including: Notice Inviting Bids, Information and Instruction to Bidders, Bid Forms, Contract Form, Performance Bond, Payment Bond, Worker’s Compensation Insurance Certificate, Guaranty, General Specifications, Special Provisions, Technical Provisions and Final Close Out Agreement. The Contract Documents also include Addenda, Project Plans, Standard Specifications, Standard Plans, incorporated Specifications, Reference Documents, Certificate(s) of Insurances and Endorsements, Permits, Environmental Documents, and Right of Way Documents.
The Contactor shall complete the Work in strict accordance with all the Contract Documents and direction from the City Engineer or her designee.
All the Contract Documents are intended to be complementary. Work required by one of the Contract Documents and not by others shall be done as if required by all. This Contract shall supersede any prior agreement of the parties.
ARTICLE 6. PROVISIONS REQUIRED BY LAW. Each and every provision of law required to be included in these Contract Documents shall be deemed to be included in these Contract Documents. The Contractor shall comply with all requirements of the California Labor Code applicable to this Project, including, but not limited to prevailing wage requirements.
ARTICLE 7. INSURANCE AND INDEMNIFICATION. Contractor shall provide insurance and indemnification as both set forth in the Contract Documents and as included below. 5-4 INSURANCE.
Contractor shall procure a standard, commercial general liability insurance policy 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 licensed and authorized by the Insurance Commissioner of the State of California Department of Insurance to be transacting business in the State of California. Policies shall be in protection of the City, its officers and employees indemnifying and defending such parties against direct or contingent loss or liability for damages for personal injury, death or property damage related to the possession, operation or performance of the work of the project. The insurance shall extend for the full term of this Contract and remain in full force and effect, in the following minimum limits:
A. Commercial General liability (Including operations, Products and completed operations):
Combined Single Limit per Occurrence $3,000,000.00
General Aggregate $5,000,000.00
2026-09-23 Item #10H Page 7 of 25
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B. Automobile Liability:
Combined Single Limit Per Occurrence
(For bodily injury and property damage) $1,000,000.00
Such policy shall comply with all the requirements of this Article. The limits set forth herein shall apply separately to each insured against whom claims are made or suits are brought, except with respect to the limits of liability. Further the limits set forth herein shall not be construed to relieve the 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 Contract Documents or law.
Each insurance policy required by this clause shall provide that coverage shall not be canceled, except with notice to the City.
Contractor shall make certain that any and all Subcontractors hired by Contractor are insured in accordance with this Contract. If any Subcontractor’s coverage does not comply with the foregoing provisions, Contractor shall indemnify and hold the City harmless from any damage, loss, cost, or expense, including attorneys’ 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, underground excavation, removal of lateral support, and other covered loss, however occasioned, occurring during the policy term, and shall specifically insure the performance by Contractor of that part of the indemnification contained in this Agreement, relating to liability for injury to or death of persons and damage to property.
Deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City. If the coverage contains one or more aggregate limits, a minimum of 50% of any such aggregate limit must remain available at all times; if over 50% of any aggregate limit has been paid or reserved, City may require additional coverage to be purchased by Contractor to restore the required limits. Contractor may combine primary, umbrella, and as broad as any 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 the Contract Documents.
For any claims related to this Project, the Contractor's insurance coverage shall be primary insurance with respect to the City, and their sub-entities, officers, officials, employees, and volunteers. Any insurance of self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Contractor's insurance and shall not contribute to it.
If the contractor maintains broader coverage and/or higher limits than the minimums shown herein, the City requires and shall be entitled to the broader coverage and/or the higher limits maintained by the contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.
Workers Compensation Insurance
The Contractor shall provide, during the life of this Contract, workers’ compensation insurance as required by the State of California, with Statutory Limits, and Employers’ Liability insurance 2026-09-23 Item #10H Page 8 of 25
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with a limit of no less than $1,000,000 per accident for bodily injury or disease for all of the employees engaged in Project under this Contract, on or at the Project site, and, in case any of sublet Work, the Contractor shall require each Subcontractor similarly to provide workers’ compensation insurance for all the latter’s employees as prescribed by State law. Any class of employee or employees not covered by a Subcontractor’s insurance shall be covered by the Contractor’s insurance. In case any class of employees engaged in work under this Contract, on or at the Project site, is not protected under the Workers’ Compensation Statutes, the Contractor shall provide or shall cause a Subcontractor to provide, adequate insurance coverage for the protection of such employees not otherwise protected. The Contractor is required to secure payment of compensation to their employees in accordance with the provisions of Section 3700 of the Labor Code. The Contractor shall file with City certificates of their insurance protecting workers and shall provide certificates at any time upon request.
Company or companies providing insurance coverage shall be acceptable to Agency, if in the form and coverage as set forth in the Contract Documents. The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of the City for all work performed by the Contractor, its employees, agents and subcontractors.
Contractor shall assume the immediate defense of and indemnify and save harmless Agency 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 Subcontractor, to perform the Project under this contract regardless of responsibility or negligence.
Employer’s Liability Insurance
Contractor shall provide during the life of this Contract, 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 Agency with a certificate of Employer’s Liability Insurance. Such insurance shall comply with the provisions of the 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 Agency.
Evidence of Insurance
The insurance policies shall provide that the policies shall remain in force during the term of this contract and shall not be canceled, terminated, or allowed to expire, nor shall it be changed so that it no longer meets the City’s insurance requirements, without 30 days prior written notice to City from the insurance company. Contractor shall furnish the City with original Certificates of Insurance including all required amendatory endorsements (or copies of the applicable policy language effecting coverage required by this clause) and a copy of the Declarations and Endorsement Page of the CGL policy listing all policy endorsements to City before work begins. However, failure to obtain the required documents prior to the work beginning shall not waive the Contractor’s obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements, required by these specifications, at any time.
Coverage
The insurance shall cover all operations of the Contractor, its agents and employees, performed in connection with this Contract including but not limited to premises and automobile. 2026-09-23 Item #10H Page 9 of 25
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Additional Insured Requirements
The City, its sub-entities, its officers, elected officials, employees, contractors, agents, construction managers, architects and volunteers are to be covered as insureds with respect to liability arising out of automobiles owned, leased, hired or borrowed by or on behalf of the Contractor; and with respect to all liability arising out of the Project or operations performed by or on behalf of the Contractor including, but not limited to, materials, parts or equipment furnished in connection with such work or operations. General liability coverage shall be provided in the form of an endorsement to the Contractor's insurance, or the City, its officers, agents, and employees shall be named as additional named insureds on Contractor's policies, evidenced by an additional insured endorsement, using form ISO CG 20-10-10-01 and CG 20-37-10-01 or their exact combined equivalent.
Proof of Insurance
The Contractor shall provide evidence of compliance with the insurance requirements listed above by providing a certificate of insurance, signed by the carrier, in a form satisfactory to the City, upon the City’s request.
Responsibility
Maintenance of insurance by the Contractor as specified in this Contract shall in no way be interpreted as limiting the Contractor’s responsibility whatsoever. The Contractor may carry, at its own expense, such additional insurance as it deems necessary.
Adjustment
Any insured loss is to be adjusted with the City and made payable to the City on behalf of the insureds, as their interests may appear. The City shall have the power to adjust and settle any loss with the insurers unless, within five working days after the loss, one of the parties in interest shall object in writing to the City’s exercise of this power; and if such objection be made, the matter shall be subject to resolution as provided herein.
Waiver of Subrogation
Contractor hereby agrees to waive rights of subrogation which any insurer of Contractor may acquire from Contractor by virtue of the payment of any loss. Contractor agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation. The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of the City for all work performed by the Contractor, its employees, agents and subcontractors.
Contractor’s insurance policy must contain a provision which provides that the insurer waives any rights of subrogation it has or may have against the City, or any of their officers or employees.
Further, any insurance maintained by the City shall apply in excess of and not contribute together with, insurance provided by Contractor.
City May Obtain Insurance for Contractor
2026-09-23 Item #10H Page 10 of 25
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In the case of any breach of any insurance provision of this Contract, City may, at City’s sole discretion, take out and maintain, at Contractor’s expense, any insurance in the name of Contractor or any Subcontractor, as City deems proper. In such case, City may deduct the cost of taking out and maintaining the insurance from any sum to which Contractor is entitled or may become entitled under this Contract.
ADD the following subsection 5-4.5:
5-4.5 Indemnification and Hold Harmless.
To the greatest extent allowed by law, Contractor shall immediately defend (with counsel approved by City), indemnify and hold City, and its 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 Project or this Contract, including without limitation the payment of all damages and attorney’s fees, fines, penalties and other related costs and expenses.
Contractor shall immediately defend, upon the 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 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 officers, employees, agents, employees and representatives, in any such suit, action or other legal proceeding. Contractor shall reimburse City, and 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.
Contractors defense and indemnity obligation herein includes, but is 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 course of construction of the Work or after the Project is complete, as the result of violations of accessibility law, regulation or negligence in Contractor’s construction or protection of the Work. By inspecting, approving, or accepting the Work, City shall not have waived the protections afforded herein to City and City's officers, officials, 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, officials, employees, and agents, harmless as provided above.
Contractor's obligation herein includes, but is not limited to, alleged defects in the construction of the Work; alleged defects in the materials furnished in the construction of the Work; alleged injury to persons or property; alleged inverse condemnation of property as a consequence of the construction or maintenance of the Work; any regulatory violations (including but not limited to Stormwater Pollution Control BMP/Erosion Control, State Construction General 2026-09-23 Item #10H Page 11 of 25
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Permit, and other and regulatory requirements) ; and any accident, loss or damage to the Work prior to the acceptance of same by City.
By inspecting, approving, or accepting the Work, City shall not have waived the protections afforded herein to City, its 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 its elected officials, appointed officials, volunteers, employees, and agents, harmless as provided above.
Contractor's obligation herein does not extend to liabilities, claims, demands, causes of action, losses, damages, or costs that arise out of the City's intentional wrongful acts, violations of law, or the City's sole active negligence.
ARTICLE 8. PREVAILING WAGES. Contractor shall be required to pay the prevailing rate of wages in accordance with the Labor Code which such rates shall be made available at the City or may be obtained online at http://www.dir.ca.gov/Public-Works/Prevailing-Wage.html and which must be posted at the job site. The prevailing wage determination for this project is 2026-1. 2026-09-23 Item #10H Page 12 of 25
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IN WITNESS WHEREOF, this Contract has been duly executed by the above-named parties, on the day and year above written.
NU-LINE TECHNOLOGIES, LLC
By: ___________________________
Name: ___________________________
Title: ___________________________
License No. _________________________
Date: ___________________________
CITY OF ENCINITAS
By_________________________
Jennifer Campbell, City Manager
Date: ___________________________
APPROVED AS TO FORM
___________________________
Ajit Thind
City Attorney
___________________________
Date
END OF CONTRACT
2026-09-23 Item #10H Page 13 of 25
ATTACHMENT 2
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Bond Number: ______________________
CITY OF ENCINITAS
FY 2026-27 STORM DRAIN REHABILITATION PROJECT AND LAKE DRIVE STORM
DRAIN LINING
CD27A & CD27B
PERFORMANCE BOND
KNOW ALL PERSONS BY THESE PRESENTS:
THAT WHEREAS, the City of Encinitas (hereinafter referred to as “City”) has awarded to _____________, (hereinafter referred to as the “Contractor”) an agreement for FY 2026-27 DRAINAGE REHABILITATION PROJECT AND LAKE DRIVE STORM
DRAIN LINING
CD27A & CD27B
(hereinafter referred to as the “Project”).
WHEREAS, the work to be performed by the Contractor is more particularly set forth in the Contract Documents for the Project dated ________________, (hereinafter referred to as “Contract Documents”), the terms and conditions of which are expressly incorporated herein by reference; and
WHEREAS, the Contractor is required by said Contract Documents to perform the terms thereof and to furnish a bond for the faithful performance of said Contract Documents.
NOW, THEREFORE, we, ___________ ____, the undersigned Contractor and _____________________________________________ as Surety, a corporation organized and duly authorized to transact business under the laws of the State of California, are held and firmly bound unto City in the sum of ___________________________ DOLLARS, ($____________), said sum being not less than one hundred percent (100%) of the total amount of the Contract, for which amount well and truly to be made, we bind ourselves, our heirs, executors and administrators, successors and assigns, jointly and severally, firmly by these presents.
THE CONDITION OF THIS OBLIGATION IS SUCH, that, if the Contractor, theirs or its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and agreements in the Contract Documents and any alteration thereof made as therein provided, on its part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their intent and meaning; and shall faithfully fulfill all obligations including the one-year guarantee of all materials and workmanship; and shall indemnify and save harmless City, its officers and agents, 2026-09-23 Item #10H Page 14 of 25
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as stipulated in said Contract Documents, then this obligation shall become null and void; otherwise it shall be and remain in full force and effect.
As a part of the obligation secured hereby and in addition to the face amount specified therefore, there shall be included costs and reasonable expenses and fees including reasonable attorney’s fees, incurred by City in enforcing such obligation.
As a condition precedent to the satisfactory completion of the Contract Documents, unless otherwise provided for in the Contract Documents, the above obligation shall hold good for a period of one (1) year after the acceptance of the work by City, during which time if Contractor shall fail to make full, complete, and satisfactory repair and replacements and totally protect City from loss or damage resulting from or caused by defective materials or faulty workmanship, the above obligation in penal sum thereof shall remain in full force and effect. The obligations of Surety hereunder shall continue so long as any obligation of Contractor remains. Nothing herein shall limit City’s rights or the Contractor or Surety’s obligations under the Contract, law or equity, including, but not limited to, California Code of Civil Procedure section 337.15.
Whenever Contractor shall be, and is declared by City to be, in default under the Contract Documents, the Surety shall remedy the default pursuant to the Contract Documents, or shall promptly, at City’s option:
(1) Take over and complete the Project in accordance with all terms and conditions in the Contract Documents; or
(2) Obtain a bid or bids for completing the Project in accordance with all terms and conditions in the Contract Documents and upon determination by Surety of the lowest responsive and responsible bidder, arrange for a Contract between such bidder, the Surety and City, and make available as work progresses sufficient funds to pay the cost of completion of the Project, less the balance of the contract price, including other costs and damages for which Surety may be liable. The term “balance of the contract price” as used in this paragraph shall mean the total amount payable to Contractor by City under the Contract and any modification thereto, less any amount previously paid by City to the Contractor and any other set offs pursuant to the Contract Documents. (3) Permit City to complete the Project in any manner consistent with California law and make available as work progresses sufficient funds to pay the cost of completion of the Project, less the balance of the contract price, including other costs and damages for which Surety may be liable. The term “balance of the contract price” as used in this paragraph shall mean the total amount payable to Contractor by City under the Contract and any modification thereto, less any amount previously paid by City to the Contractor and any other set offs pursuant to the Contract Documents.
Surety expressly agrees that City may reject any contractor or subcontractor which may be proposed by Surety in fulfillment of its obligations in the event of default by the Contractor. 2026-09-23 Item #10H Page 15 of 25
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Surety shall not utilize Contractor in completing the Project nor shall Surety accept a bid from Contractor for completion of the Project if City, when declaring the Contractor in default, notifies Surety of City’s objection to Contractor’s further participation in the completion of the Project.
The Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract Documents or to the Project to be performed thereunder shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Contract Documents or to the Project.
IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day of ______________, 2026.
(Corporate Seal)
Contractor/ Principal
By
Title
(Corporate Seal) Surety
By
Attorney-in-Fact
(Attach Attorney-in-Fact Certificate) Title
The rate of premium on this bond is ____________ per thousand. The total amount of premium charges, $_______________________________.
(The above must be filled in by corporate attorney.)
2026-09-23 Item #10H Page 16 of 25
ATTACHMENT 2
D-12
THIS IS A REQUIRED FORM
Any claims under this Performance Bond may be addressed to:
(Name and Address of Surety)
___________________________________________
___________________________________________
___________________________________________
(Name and Address of Agent or Representative for service of process in California, if different from above)
___________________________________________
___________________________________________
___________________________________________
(Telephone number of Surety and Agent or Representative for service of process in California ___________________________________________
Bond Number: ______________________
2026-09-23 Item #10H Page 17 of 25
ATTACHMENT 2
D-13
CITY OF ENCINITAS
FY 2026-27 STORM DRAIN REHABILITATION PROJECT AND LAKE DRIVE STORM
DRAIN LINING
CD27A & CD27B
PAYMENT BOND
KNOW ALL MEN BY THESE PRESENTS that:
WHEREAS, the City of Encinitas (hereinafter designated as “City”), by action taken or a resolution passed ___, 2026 has awarded to hereinafter
designated as the “Principal,” a contract for the work described as follows:
FY 2026-27 DRAINAGE REHABILITATION PROJECT AND LAKE DRIVE STORM
DRAIN LINING
CD27A & CD27B
(the “Project”); and
WHEREAS, said Principal is required to furnish a bond in connection with said contract; providing that if said Principal or any of its Subcontractors shall fail to pay for any materials, provisions, provender, equipment, or other supplies used in, upon, for or about the performance of the work contracted to be done, or for any work or labor done thereon of any kind, or for amounts due under the Unemployment Insurance Code or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department from the wages of employees of said Principal and its Subcontractors with respect to such work or labor the Surety on this bond will pay for the same to the extent hereinafter set forth.
NOW THEREFORE, we, the Principal and __________________________ as Surety, are held and firmly bound unto City in the penal sum of ______________ Dollars ($___________) lawful money of the United States of America, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents.
THE CONDITION OF THIS OBLIGATION IS SUCH that if said Principal, their or its subcontractors, heirs, executors, administrators, successors or assigns, shall fail to pay any of the persons named in Section 9100 of the Civil Code, fail to pay for any materials, provisions or other supplies, used in, upon, for or about the performance of the work contracted to be done, or for any work or labor thereon of any kind, or amounts due under the Unemployment Insurance Code with respect to work or labor performed under the contract, or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department or Franchise Tax Board from the wages of employees of the contractor and their subcontractors pursuant to Section 18663 of the Revenue and Taxation Code, with respect to such work and labor the Surety or Sureties will pay for the same, in an amount not exceeding the sum herein above specified, and also, in case suit is brought upon this bond, all litigation expenses incurred by City in such suit, including reasonable attorneys’ fees, court costs, expert witness fees and investigation expenses.
2026-09-23 Item #10H Page 18 of 25
ATTACHMENT 2
D-14
This bond shall inure to the benefit of any of the persons named in Section 9100 of the Civil Code so as to give a right of action to such persons or their assigns in any suit brought upon this bond.
It is further stipulated and agreed that the Surety on this bond shall not be exonerated or released from the obligation of this bond by any change, extension of time for performance, addition, alteration or modification in, to, or of any contract, plans, specifications, or agreement pertaining or relating to any scheme or work of improvement herein above described, or pertaining or relating to the furnishing of labor, materials, or equipment therefore, nor by any change or modification of any terms of payment or extension of the time for any payment pertaining or relating to any scheme or work of improvement herein above described, nor by any rescission or attempted rescission or attempted rescission of the contract, agreement or bond, nor by any conditions precedent or subsequent in the bond attempting to limit the right of recovery of claimants otherwise entitled to recover under any such contract or agreement or under the bond, nor by any fraud practiced by any person other than the claimant seeking to recover on the bond and that this bond be construed most strongly against the Surety and in favor of all persons for whose benefit such bond is given, and under no circumstances shall Surety be released from liability to those for whose benefit such bond has been given, by reason of any breach of contract between the owner or City and original contractor or on the part of any oblige named in such bond, but the sole conditions of recovery shall be that claimant is a person described in Section 8400, 8402 or 8404 of the Civil Code, and has not been paid the full amount of their claim and that Surety does hereby waive notice of any such change, extension of time, addition, alteration or modification herein mentioned.
IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day of ______________, 2026.
(Corporate Seal)
Contractor/ Principal
By
Title
_
(Corporate Seal) Surety
By
Attorney-in-Fact
(Attach Attorney-in-Fact Certificate) Title
2026-09-23 Item #10H Page 19 of 25
ATTACHMENT 2
D-15
The rate of premium on this bond is ____________ per thousand. The total amount of premium charges, $_______________________________.
(The above must be filled in by corporate attorney.)
STATE OF CALIFORNIA )
) ss.
CITY OF ___________ )
On this ________ day of ___________________, in the year 2026, before me, ___________________________, a Notary Public in and for said state, personally appeared _________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument as the Attorney-In-Fact of the (Surety) acknowledged to me that he/she executed the same in their authorized capacity, and subscribed the name of the ___________________________ (Surety) thereto and their own name as Attorney-In-Fact.
I certify under penalty of perjury under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Notary Public in and for said State
(SEAL)
Commission expires: _______________
NOTE: A copy of the Power-of-Attorney to local representatives of the bonding company must be attached hereto.
2026-09-23 Item #10H Page 20 of 25
ATTACHMENT 2
D-16
CITY OF ENCINITAS
FY 2026-27 STORM DRAIN REHABILITATION PROJECT AND LAKE DRIVE STORM
DRAIN LINING
CD27A & CD27B
WORKER’S COMPENSATION INSURANCE CERTIFICATE
Pursuant to Section 1861 of the State Labor Code Amended by Stats. 1979, C.373, p1343, each contractor to whom a public works contract has been awarded shall sign the following certificate and shall submit same to the Agency prior to performing any work on the contract:
“I am aware of the provisions of Section 3700 of the Labor Code which requires every employer to be insured against liability for Worker’s Compensation or to undertake self-insurance in accordance with the provisions of that Code, and I will comply with such provisions before commencing the performance of work of this contract.”
________
Contractor
By ______________________
Print Name
______________________
Signature
______________________
Title
______________________
Date
Section 3700 of the State Labor Code reads as follows:
“Every employer except the State shall secure the payment of compensation in one or more of the following ways:
(a) By being insured against liability to pay compensation in one or more insurers duly authorized to write compensation insurance in this state. (b) By securing from the Director of Industrial Relations a certificate of consent to self-insure, which may be given upon furnishing proof satisfactory to the Director of Industrial Relations of ability to self-insure and to pay any compensation that may become due to their employee.”
2026-09-23 Item #10H Page 21 of 25
ATTACHMENT 2
D-17
CITY OF ENCINITAS
FY 2026-27 STORM DRAIN REHABILITATION PROJECT AND LAKE DRIVE STORM
DRAIN LINING
CD27A & CD27B
GUARANTY
In accordance with the terms of the FY 2026-27 STORM DRAIN REHABILITATION PROJECT AND LAKE DRIVE STORM DRAIN LINING (CD27A & CD27B) project in the City of Encinitas approved
, 2026, between the City of Encinitas, (hereinafter referred to as the Agency) and the undersigned, under which contract the undersigned shall complete work as described in the contract documents, the following guarantee of said work is hereby made.
Should any of the items installed pursuant to said contract, prove defective or should the item as a whole prove defective, due to faulty workmanship, material furnished or methods of installation, or should the said item or any part thereof fail to operate properly, as planned, due to any of the above causes, all within one (1) year after date on which the work is accepted by the Agency, the undersigned agrees that the repairs shall be made and such materials as are necessary shall be furnished and installed within thirty (30) days after the receipt of demand from the Agency. In the event repairs are not made within thirty (30) days, the Agency shall have the unqualified option to make any needed repairs or replacements itself or by any other Contractor. The undersigned agrees to reimburse the Agency, upon demand, of its expenses incurred in restoring said items to the condition contemplated in said contract, including the cost of any equipment or materials replaced, or upon demand by the Agency, to replace any such equipment and repair said items completely without cost to the Agency so that they will operate successfully as originally contemplated.
Emergency repairs must necessarily be made by the Agency; therefore, when defective material or workmanship results in emergency repairs, the undersigned agrees to reimburse the Agency, upon demand, any expenses incurred.
Said items will be deemed defective within the meaning of this Guaranty in the event that they fail to operate as originally intended thereof and in accordance with the plans and specifications included in said contract. The Faithful Performance Bond for this project shall remain in full force and effect for the entire guarantee period as required in the specifications and contract documents.
Date______________________________Contractor__________________________ 2026-09-23 Item #10H Page 22 of 25
ATTACHMENT 3
RESOLUTION NO. 2026-88
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 2026-048 adopting the budget for Fiscal Year 2026-27; and WHEREAS, 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 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 23rd day of September 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
2026-09-23 Item #10H Page 23 of 25
ATTACHMENT 3
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 23rd day of September 2026 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
_____________________________
Pete Weichers, City Clerk
2026-09-23 Item #10H Page 24 of 25
Exhibit A
Resolution 2026-88
Proposed Budget Increase or (Decrease)
# Fund-Name Org Obj Comments Revenue Expenditures Transfer In Transfer Out A. Staff Recommendation: Fund Lake Dr Storm Drain Lining Project (CD27B)
1. 401-CAPITAL IMPROVEMENTS 40195101 540 CD27B 101:401 Award contract 260,000
2. 101-GENERAL FUND 10190999 498.2 260,000
3. 401-CAPITAL IMPROVEMENTS 40100000 398.2 260,000
Total - 260,000 - 260,000
2026-09-23 Item #10H Page 25 of 25