Foster City City Council
July 15, 2024

9.03 Correction of Defective Work
A. Owner may direct Contractor to correct any Defective Work or remove it from the Site and replace it with Work that is not Defective and satisfactorily correct or remove and replace any damage to other Work or the work of others resulting from the correction or removal. Also, if Contractor fails to supply sufficient skilled workers, suitable materials or equipment, or to furnish or perform the Work in such a way that the completed Work will conform to Contract Documents, Owner may direct Contractor to perform the Work in accordance with the Contract Documents, correct or replace any such Defective Work, or stop any portion of Work.

B. Owner may correct and remedy the Defective Work or perform any other work, corrective or otherwise, if, after five Days’ written notice to Contractor, Contractor fails to correct Defective Work or to remove and replace rejected Work; or provide a plan for correction of Defective Work acceptable to Owner; or perform Work in accordance with Contract Documents. In connection with such corrective and remedial action, Owner may exclude Contractor from all or part of the Site; take possession of all or part of Work and suspend Contractor’s Work related thereto; take

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General Conditions 00 7200 - 12 Foster City Street Rehabilitation Project possession of all or part of Contractor’s tools, appliances, construction equipment and machinery at the Site; and incorporate in Work any materials and equipment stored at the Site or for which Owner has paid Contractor but which are stored elsewhere. Contractor shall allow Owner, its representatives, agents, employees, and other contractors and consultants’ access to the Site to enable Owner to exercise the rights and remedies under this Paragraph.

C. Contractor shall be responsible for all claims, costs, losses, damages, expenses and liabilities incurred or sustained by Owner in exercising rights and remedies under this Paragraph.

Contractor shall be responsible for any and all claims, costs, losses and damages caused by or resulting from such correction or removal. A Change Order will be issued incorporating the necessary revisions in the Contract Documents with respect to the Work and the Contract Sum.

If the parties are unable to agree to the amount of an appropriate decrease in the Contract Sum, Owner may decide the proper amount or, in its discretion may elect to leave the Contract Sum unchanged and deduct from monies due Contractor, all such claims, costs, losses and damages caused by or resulting from exercising its rights and remedies. If Contractor disagrees with Owner’s calculations, it may make a claim as provided in Article 12 of this Document 00 7200.

D. These Owner rights and remedies are entirely discretionary on the part of Owner, and shall not give rise to any duty on the part of Owner to exercise the rights for the benefit of Contractor or any other party. Owner’s rights under this Paragraph shall be in addition to any other rights it may have under the Contract Documents or by law. Owner’s failure to demand correction of defective work does not relieve the Contractor from delivering a Project that comports with the Project’s plans and specifications.

9.04 Acceptance of Defective Work
A. Owner may in its sole discretion elect to accept Defective Work. Contractor shall pay all claims, costs, losses and damages attributable to Owner’s evaluation of and determination to accept such Defective Work. If Owner accepts any Defective Work prior to final payment, a Change Order will be issued incorporating the necessary revisions in the Contract Documents with respect to the Work and the Contract Sum. If the parties are unable to agree to the amount of an appropriate decrease in the Contract Sum, Owner may deduct from monies due Contractor, all claims, costs, losses, damages, expenses and liabilities attributable to the Defective Work. If Contractor disagrees with Owner’s calculations, Contractor may make a claim as provided in Article 12 of this Document 00 7200. If Owner accepts any Defective Work after final payment, Contractor shall pay to Owner, an appropriate amount as determined by Owner.

9.05 Rights upon Inspection, Correction or Acceptance
A. Contractor shall not be allowed an extension of Contract Time because of any delay in the performance of Work attributable to the exercise by Owner of its rights and remedies under this Article. Where Owner exercises its rights under this Article, it retains and may still exercise all other rights it has by law or under the Contract Documents including, without limitation, the right to terminate Contractor’s right to proceed with the Work under the Contract Documents for cause and/or make a claim or back charge where a Change Order cannot be agreed upon.

B. Observation or inspection by Owner or its authorized agents or representatives shall not relieve Contractor of its obligation to have furnished material and workmanship in accordance with Contract Documents. Payment for Work completed through periodic progress payments, final payment or otherwise shall not operate to waive Owner’s right to require full compliance with Contract Documents and shall in no way be deemed as acceptance of any defective Work paid therefor. Contractor’s obligation to complete the Work in accordance with Contract Documents shall be absolute, unless Owner agrees otherwise in writing.

9.06 Proof of Compliance of Contract Provisions
A. In order that Owner may determine whether Contractor has complied or is complying with requirements of Contract Documents not readily enforceable through inspection and tests of Work and materials, Contractor shall at any time, when requested, submit to Owner properly authenticated documents or other satisfactory proofs of compliance with all applicable requirements.

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General Conditions 00 7200 - 13 Foster City Street Rehabilitation Project B. Before commencing any portion of Work, Contractor shall inform Owner in writing as to time and place at which Contractor wishes to commence Work, and nature of Work to be done, in order that proper provision for inspection of Work may occur, and to assure measurements necessary for record and payment. Information shall be given to Owner a reasonable time in advance of time at which Contractor proposes to begin Work, so that Owner may complete necessary preliminary work without inconvenience or delay to Contractor.

9.07 Correction Period and Project Warranty Period
A. If within one year after the date of Final Acceptance, or such longer period of time as may be prescribed by laws, regulations or by the terms of Contract Documents or any extended warranty or guaranty, any Work (completed or incomplete) is found to be Defective, Contractor shall promptly without cost to Owner and in accordance with Owner’s written instructions, correct such Defective Work. Contractor shall remove any Defective Work rejected by Owner and replace it with Work that is not Defective, and satisfactorily correct or remove and replace any damage to other Work or the work of others resulting therefrom. If Contractor fails to promptly comply with the terms of such instructions, or in an emergency where delay would cause serious risk of loss or damage, Owner may have the Defective Work corrected or the rejected Work removed and replaced. Contractor shall pay for all claims, costs, losses and damages caused by or resulting from such removal and replacement. Where Contractor fails to correct Defective Work, or defects are discovered outside the correction period, Owner shall have all rights and remedies granted by law.

B. In special circumstances where a part of the Work is occupied or a particular item of equipment is placed in continuous service before Final Acceptance of all the Work, the correction period for that part of Work or that item may start to run from an earlier date if so provided by Change Order.

C. Where Defective Work or rejected Work (and damage to other Work resulting therefrom) has been corrected, removed, or replaced under this Paragraph after the commencement of the correction period, the correction period hereunder with respect to such Work shall be extended for an additional period of one year after such correction or removal and replacement has been satisfactorily completed.

9.08 No Waiver
A. Neither recordation of Final Acceptance, nor final certificate for payment, nor provision of the Contract, nor partial or entire use or occupancy of premises by Owner shall constitute acceptance of Work not done in accordance with Contract Documents nor relieve Contractor of liability in respect to express warranties or responsibility for faulty materials or workmanship.

B. If, after installation, operation, or use of materials or equipment to be provided under Contract proves to be unsatisfactory to Owner, Owner shall have the right to operate and use materials or equipment until said materials and equipment can, without damage to Owner, be taken out of service for correction or replacement. Period of use of Defective materials or equipment pending correction or replacement shall in no way decrease guarantee period required for acceptable corrected or replaced items of materials or equipment.

C. Nothing in the Contract Documents shall be construed to limit, relieve, or release Contractor’s, Subcontractors’, and equipment suppliers’ liability to Owner for damages sustained as result of latent defects in materials or equipment caused by negligence of Contractor, its agents, suppliers, employees, or Subcontractors.

ARTICLE 10 MODIFICATIONS OF CONTRACT DOCUMENTS

10.01 Owner’s Right to Direct Changed Work
A. Owner may, without notice to the sureties and without invalidating the Contract, make changes in the Work (Changed Work), including without limitation: alterations, deviations, additions to, or deletions from Contract Documents; increase or decrease the quantity of any item or portion of the Work; expand, reduce or otherwise change the Contract Time; delete any item or portion of the Work; and require extra Work. Contractor shall perform such Work under applicable provisions of the Contract Documents, unless specifically provided otherwise at the time the

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General Conditions 00 7200 - 14 Foster City Street Rehabilitation Project change is ordered. In the case of any ordered extra Work, Owner reserves the right to furnish all or portions of associated labor, material, and equipment, which Contractor shall accept and use without payment for costs, markup, profit, or otherwise for such Owner-furnished labor, materials, and equipment.

B. If Changed Work is of such a nature as to increase or decrease the time or cost of any part of Work, price fixed in Contract shall be increased or decreased by amount as the Contractor and Owner may agree upon as reasonable and proper allowance for increase or decrease in cost of Work using the cost guidelines set forth in this Article, and absent such agreement, then as Owner may direct (with Contractor retaining its rights under Article 12 herein).

10.02 Required Documentation for Changed Work
A. Changes affecting the Contract Time or Contract Sum of the Work shall be set forth in a written Change Order or Change Directive that shall specify:

1. The Work performed in connection with the change to be made;

2. The amount of the adjustment of the Contract Sum, if any, and the basis for compensation for the Work ordered; and

3. The extent of the adjustment in the Contract Time, if any.

B. A Change Order or Change Directive will become effective when signed by Owner, notwithstanding that Contractor has not signed it. A Change Order will become effective without Contractor’s signature, provided Owner indicates same thereon (by indicating it as a “unilateral change order”).

C. All changes in any plans and specifications approved by any authority with jurisdiction may also require addenda or change orders approved by that authority.

D. Where Owner requests, a performance bond rider covering the changed Work must be executed and delivered to Owner before proceeding with the changed Work or shortly in time thereafter.

10.03 Procedures and Pricing of Changed Work
A. Procedures for changed work and pricing of changed work, claims and all forms of extra compensation, are set forth in Section 01 2600 (Modification Procedures).

ARTICLE 11 TIME ALLOWANCES

11.01 Time Allowances
A. Time is of the essence. Contract Time may only be changed by Change Order, and all time limits stated in the Contract Documents are to mean that time is of the essence.

B. Float. Float shall be treated as a Project resource. Contractor shall not be entitled to a time extension for impacts that consume float, but do not impact the critical path.

C. Time extensions will not be granted unless substantiated by the Critical Path Method (CPM) Schedule, and then not until the CPM project float becomes zero. If Contractor fails to submit a Time Impact Evaluation (TIE), as required by Section 01 2600 (Modification Procedures) and Section 01 3200 (Progress Schedules and Reports), within the required time period, then Contractor shall be deemed to have agreed that there is no time impact and that Contractor has irrevocably waived its rights to any additional Contract Time.

11.02 Excusable Delay and Inexcusable Delay Defined
A. Excusable Delay. Subject to the provisions on Notice of Delay below, Contract Time may be adjusted in an amount equal to the time lost due to:

1. Changes in the Work ordered by Owner (Changes);

2. Acts or neglect by Owner, Architect, any Owner Representative, utility owners or other contractors performing other work, not permitted or provided for in the Contract Documents, provided that Contractor has performed its responsibilities under the Contract Documents (including, without limitation, pre-bid investigations) (Acts or Neglect); or

3. Acts of God, fires, floods, earthquake, other natural disasters, epidemics and pandemics (other than COVID-19 or variants), abnormal weather conditions beyond the parameters

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General Conditions 00 7200 - 15 Foster City Street Rehabilitation Project otherwise set forth in this Article, nuclear accidents, strikes, lockouts, freight embargos, interruptions in service by a regulated utility, or governmental statutes or regulations enacted or imposed after the fact (together, “force majeure events”), provided damages or delays resulting therefrom are not the result of Contractor’s fault or negligence, including without limitation failure to protect the Work or mitigate any adverse impacts as required by Contract Documents (Force Majeure).

B. Inexcusable Delay. Contract Time shall not be extended for any period of time where Contractor (and/or any Subcontractor) is delayed or prevented from completing any part of the Work due to a cause that is within Contractor’s risk or responsibility under the Contract Documents. Delays attributable to or within the control of a Subcontractor, or its subcontractors, or supplier, are deemed delays within the control of Contractor.

11.03 Notice of Delay
A. Within seven Days of the beginning of any delay (excepting adverse weather delays), Contractor shall notify Owner in writing, by submitting a notice of delay that shall describe the anticipated delays resulting from the delay event in question. If Contractor requests an extension of time, Contractor shall submit a TIE, in accordance with by Section 01 2600 (Modification Procedures) and Section 01 3200 (Progress Schedules and Reports), within ten days of the notice of delay.

Owner will determine all claims and adjustments in the Contract Time. No claim for an adjustment in the Contract Time will be valid and such claim will be waived if not submitted in accordance with the requirements of this subparagraph. In cases of substantial compliance with the seven-day notice requirement here (but not to exceed twenty-one days from the beginning of the delay event), Owner may in its sole discretion recognize a claim for delay accompanied with the proper TIE, provided Contractor also shows good faith and a manifest lack of prejudice to Owner from the late notice.

11.04 Compensable Time Extensions
A. Subject to other applicable provisions of the Contract Documents, Contractor may be entitled to adjustment in Contract Sum in addition to Contract Time for:

1. Excusable delay caused solely by Changes in the Work ordered by Owner, as provided above, and/or

2. Excusable delay caused solely by Acts or Neglect by Owner or other person, as provided above.

11.05 Non-Compensable Time Extensions
A. Subject to other applicable provisions of the Contract Documents, Contractor may be entitled to adjustment in Contract Time only, without adjustment in Contract Sum, for

1. Periods of excusable delay caused solely by weather or Force Majeure events as provided above in this Article, or

2. Periods of concurrent delay, where delay results from two or more causes, one of which is compensable (resulting from Changes or Acts or Neglect as set forth above in this Article), and the other of which is non-compensable or unexcusable, such as: acts or neglect of Contractor, Subcontractors or others for whom Contractor is responsible; other acts, omissions and conditions which would not entitle Contractor to adjustment in Contract Time; adverse weather; and/or actions of Force Majeure as provided above in this Article.

11.06 Adverse Weather
A. Adverse weather delays may be allowed only if the number of workdays of adverse weather exceeds the parameters listed or referenced immediately below in this subparagraph and Contractor proves that adverse weather actually caused delays to work on the critical path.

Contractor shall give written notice of intent to claim an adverse weather day within one Day of the adverse weather day occurring.

B. Claims for extension of time for rain delay will not be granted unless the number of days work is prevented by rain exceeds [insert either] 100% of the historical average number of rain days for

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General Conditions 00 7200 - 16 Foster City Street Rehabilitation Project the period of the Contract Time, based on the records of the National Oceanic & Atmospheric Administration (NOAA) weather station identified in Supplemental Conditions or, if not, the station closest to the Project Site (in either case, Weather Station), as measured and reported by NOAA. (For example, for California, Oregon and Washington, these figures are contained in the “>=0.10 inch” column at the applicable weather station’s “General Climate Summary Table” for “Precipitation” at http://www.wrcc.dri.edu/climate-summaries/), pro-rated in the individual month Contractor starts and finishes Work. [or] the total number of adverse weather days indicated in the Supplemental Conditions, based on the records of the National Oceanic & Atmospheric Administration National Weather Service (NOAA) weather station identified in Supplemental Conditions or, if not, the station closest to the Project Site (in either case, Weather Station). [Whichever of the above alternatives is selected, continue] Delays due to adverse weather conditions will not be allowed for weather conditions that fall within these parameters.

C. In order to qualify as an adverse weather delay day with respect to the foregoing parameters, daily rainfall must exceed 0.1 inch at the Weather Station, as measured and reported by NOAA.

Notwithstanding these allowances, Contractor shall at all times employ all available mitigation measures to enable Work to continue, Contractor shall take reasonable steps to mitigate potential weather delays, such as dewatering the Site, lime treatment, and covering Work and material that could be affected adversely by weather. Failure to do so shall be cause for Owner to not grant a time extension due to adverse weather, where Contractor could have avoided or mitigated the potential delay by exercising reasonable care.

D. Contractor shall include the foregoing precipitation parameters as a monthly activity in its progress schedule. As Work on the critical path is affected by precipitation, Contractor shall notify Owner and request that the days be moved to the affected activities. Any adverse weather days remaining shall be considered Project float available to either Owner or Contractor.

E. Adverse weather delay for precipitation shall be recognized for the actual period of time Contractor proves it was delayed by precipitation exceeding the specified parameters. For example, and not by way of limitation, if precipitation exceeding the specified parameters does not in fact delay Contractor’s progress on the critical path, then no time extension shall be recognized; and conversely, if Contractor proves to Owner’s satisfaction that precipitation exceeding the specified parameters causes delay to Contractor for a period longer than the number of precipitation days incurred (e.g., if it rains or snows during grading work), then Contractor shall be entitled to a time extension equal to the actual period of such delay.

F. During unfavorable weather, wet ground, or other unsuitable construction conditions, Contractor shall employ best practices to protect the Work, manage the construction site and rainwater during inclement weather. Persons performing the Work shall examine surfaces to receive their Work and shall report in writing to Contractor, with copy to Owner representative and the Architect conditions detrimental to the Work. Failure to examine and report discrepancies makes the Contractor responsible, at no increase in Contract Sum, for corrections Owner may require.

Commencement of Work constitutes acceptance of surface.

11.07 Liquidated Damages
A. Time is of the essence. Execution of Contract Documents by Contractor shall constitute its acknowledgement that Owner will actually sustain damages in the form of Contract administration expenses (such as Project management and consultant expenses) in the amount fixed in the Contract Documents for each and every Day during which completion of Work required is delayed beyond expiration of time fixed for completion plus extensions of time allowed pursuant to provisions hereof.

B. Contractor and Owner agree that because of the nature of the Project, it would be impractical or extremely difficult to fix the amount of such actual damages incurred by Owner because of a delay in completion of all or any part of the Work. Contractor and Owner agree that specified measures of liquidated damages shall be presumed to be the amount of such damages actually sustained by Owner, and that because of the nature of the Project, it would be impracticable or extremely difficult to fix the actual damages.

C. Liquidated damages for delay shall cover administrative, overhead, interest on bonds, and general loss of public use damages suffered by Owner as a result of delay. Liquidated damages shall not cover the cost of completion of the Work, damages resulting from Defective Work, lost

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General Conditions 00 7200 - 17 Foster City Street Rehabilitation Project revenues or costs of substitute facilities, or damages suffered by others who then seek to recover their damages from Owner (for example, delay claims of other contractors, subcontractors, tenants, or other third-parties), and defense costs thereof. Owner may deduct from any money due or to become due to Contractor subsequent to time for completion of entire Work and extensions of time allowed pursuant to provisions hereof, a sum representing then-accrued liquidated damages.

D.[Optional]Contractor and Owner agree that the Key Personnel listed in Contractor’s Statement of Qualifications (Document 00 4513) were a material factor in Owner’s assessment of Contractor’s experience and the adequacy of Contactor’s supervisory personnel. Accordingly, Contractor and Owner agree that Contractor shall not remove, reassign or make changes to any of the Key Personnel without Owner’s prior written approval. In the event that any Key Personnel leaves the Project, is reassigned and/or is removed and replaced by Contractor before Project Final Completion, for any reason other than departure from Contractor, Contractor agrees to pay Owner liquidated damages as set forth in the Agreement (Document 00 5200), unless Contractor can demonstrate to Owner’s satisfaction that the Key Personnel were reassigned and/or removed and replaced for reasons beyond Contractor’s control.

ARTICLE 12 CLAIMS BY CONTRACTOR

12.01 Obligation to File Claims for Disputed Work
A. Should it appear to Contractor that the Work to be performed or any of the matters relative to the Contract Documents are not satisfactorily detailed or explained therein, or should any questions arise as to the meaning or intent of the Contract Documents, or should any dispute arise regarding the true value of any work performed, work omitted, extra work that the Contractor may be required to perform, time extensions, payment to the Contractor during performance of this Contract, performance of the Contract, and/or compliance with Contract procedures, or should Contractor otherwise seek extra time or compensation FOR ANY REASON WHATSOEVER (collectively, Disputed Work), then Contractor shall first follow procedures set forth in the Contract Documents (including, without limitation, Paragraphs 11.03, 11.04, 13.03 and 13.04 of this Document 00 7200 and Section 01 2600.) If a dispute remains, then Contractor shall give written notice to Owner that expressly invokes this Article 12. Owner shall decide the issue in writing within 15 days; and Owner’s written decision shall be final and conclusive. If Contractor disagrees with Owner’s decision, or if Contractor contends that Owner failed to provide a decision timely, then Contractor’s SOLE AND EXCLUSIVE REMEDY is to file a written claim within the time limits set forth in Paragraph 12.02 of this Article setting forth Contractor’s position as required herein.

B. Duty to Work During Disputes. Notwithstanding any dispute or Disputed Work, Contractor shall continue to prosecute the Work and the Disputed Work in accordance with the Owner’s determinations. Contractor’s SOLE AND EXCLUSIVE REMEDY for Disputed Work is to file a written claim within the time limits set forth in Paragraph 12.02 of this Article setting forth Contractor’s position as required herein.

12.02 Form and Contents of Claim
A. Contractor’s written claim must identify itself as a Claim under this Article 12 and must include the following: (i) a narrative of pertinent events; (ii) citation to contract provisions; (iii) theory of entitlement; (iv) complete pricing of all cost impacts; (v) a Time Impact Evaluation of all time delays that shows actual time impact on the critical path; (vi) documentation supporting items (i) through (v); and (vii) a verification under penalty of perjury of the claim’s accuracy. The Claim shall be submitted to Owner within thirty (30) calendar days of receiving Owner’s written decision, or the date Contractor contends such decision was due, and shall be priced like a change order according to Section 01 2600, and must be updated monthly as to cost and entitlement if a continuing claim. Routine contract materials, for example, correspondence, RFI, Change Order requests, or payment requests shall not constitute a claim. Contractor shall bear all costs incurred in the preparation and submission of a claim.

B. Regarding delay and impact costs of any nature, Contractor may not seek delay compensation for on-Site or off-Site costs based on formulas, e.g., “Eichleay” or other formula. Rather,

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General Conditions 00 7200 - 18 Foster City Street Rehabilitation Project Contractor shall prove actual costs resulting from such delays. If Contractor requests compensation for delay to the construction, then Contractor shall prove and document actual costs plus markup per the cost categories and procedures in Section 01 2600 (Modification Procedures) in order to request, claim or prove compensation for delay.

12.03 Administration During/After Claim Submission
A. Owner may render a final determination based on the Claim or may in its discretion conduct an administrative hearing on Contractor’s claim, in which case Contractor shall appear, participate, answer questions and inquiries, and present any further evidence or analysis requested by Owner prior to rendering a final determination. Should Owner take no action on the Claim within 45 days of submission, it shall be deemed denied.

B. Notwithstanding and pending the resolution of any claim or dispute, Contractor shall diligently prosecute the disputed work to final completion in accordance with Owner’s determination.

C. Public Contract Code Section 9204 specifies provisions on resolving contract claims of any size, and Public Contract Code Section 20104, et seq., specifies required provisions on resolving contract claims less than $375,000. Those statutes constitute a part of this Contract. In the event any other Contract provision violates such statutes, the applicable statute controls. See Section 01 4100.

12.04 Compliance
A. The provisions of this Article 12 constitute a non-judicial claim settlement procedure that, pursuant to Government Code Section 930.2, shall constitute a condition precedent to submission of a valid Government Code Claim under the Government Code. Contractor shall bear all costs incurred in the preparation, submission and administration of a claim. Any claims presented in accordance with the Government Code must affirmatively indicate Contractor’s prior compliance with the claims procedure herein and the previous dispositions under Paragraph

12.03 above of the claims asserted. No suit may be brought against Owner arising out of or in connection with the Project unless and until Contractor presents to Owner a statutory Government Code Claim, in accordance with Government Code Sections 910, et seq. Pursuant to Government Code Section 930.2, the one-year period in Government Code section 911.2 shall be reduced to 150 days from either accrual of the cause of action, substantial completion or termination of the contract, whichever occurs first; in all other respects, the Government Code shall apply unchanged.

B. Failure to submit and administer claims as required in Article 12 shall waive Contractor’s right to claim on any specific issues not included in a timely submitted claim. Claim(s) or issue(s) not raised in a timely protest and timely claim submitted under this Article 12 may not be asserted in any subsequent litigation, Government Code Claim, or legal action.

C. Contractor shall present as its claims all Subcontractor, sub-Subcontractor and supplier claims of any type, and prove them under the terms of the Contract Documents. Owner shall not be directly liable to any Subcontractor, any supplier, or any other person or organization, or to any surety for or employee or agent of any of them, for damages or extra costs of any type arising out of or resulting from the Project.

D. Owner shall not be deemed to waive any provision under this Article 12, if at Owner’s sole discretion, a claim is administered in a manner not in accord with this Article 12. Waivers or modifications of this Article 12 may only be made a signed change order approved as to form by legal counsel for both Owner and Contractor; oral or implied modifications shall be ineffective.

12.05 Mediation
A. All Contractor claims not otherwise subject to Public Contract Code Sections 20104, et seq., shall, as a condition precedent to litigation thereon, first be mediated. Mediation shall be confidential, non-binding, pursuant to the construction mediation procedures of JAMS in Foster City, California, and utilize the services of a mediator mutually acceptable to the parties. If the parties are unable to agree, the mediator will be selected by JAMS from its panel of approved construction industry mediators, having a minimum of 20 years’ experience in the construction industry.

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General Conditions 00 7200 - 19 Foster City Street Rehabilitation Project B. All statutes of limitation shall be tolled from the date of the demand for mediation until a date two weeks following the mediation’s conclusion. All unresolved Contractor claims shall be submitted to the same mediator. The cost of mediation shall be equally shared by all parties to the mediation. The parties shall, prior to the commencement of a mediation pursuant to this Paragraph, upon notice of the other party, exchange relevant, non-privileged project documents in compliance with Code of Civil Procedure Sections 2031.010, et seq. Additionally, the parties may agree mutually to engage in additional discovery prior to mediation. Should the parties proceed with additional discovery, they shall, unless mutually agreed otherwise, comply with Code of Civil Procedure Sections 2019, et. seq. The Mediator will have jurisdiction to resolve any discovery disputes relating to the Mediation.

ARTICLE 13 UNDERGROUND CONDITIONS

13.01 Contractor to Locate Underground Facilities
A. During construction, Contractor shall comply with Government Code Sections 4216 to 4216.9, and in particular Section 4216.2 which provides, in part: “Except in an emergency, an excavator planning to conduct an excavation shall notify the appropriate regional notification center of the excavator’s intent to excavate at least two working days, and not more than 14 calendar days, before beginning that excavation. The date of the notification shall not count as part of the two- working-day notice. If an excavator gives less notice than the legal excavation start date and time and the excavation is not an emergency, the regional notification center will take the information and provide a ticket, but an operator has until the legal excavation start date and time to respond.

However, an excavator and an operator may mutually agree to a different notice and start date.

The contact information for operators notified shall be available to the excavator.” B. Contractor shall contact USA, and schedule the Work to allow ample time for the center to notify its members and, if necessary, for any member to field locate and mark its facilities. Contractor is charged with knowledge of all subsurface conditions reflected in USA records. Prior to commencing excavation or trenching work, Contractor shall provide Owner with copies of all USA records secured by Contractor. Contractor shall advise Owner of any conflict between information provided in Document 00 3132 (Geotechnical Data and Existing Conditions), the Drawings and that provided by USA records. Contractor’s excavation shall be subject to and comply with the Contract Documents.

C. Contractor shall also investigate the existence of existing service laterals, appurtenances or other types of utilities, indicated by the presence of an underground transmission main or other visible facilities, such as buildings, manholes, new asphalt, meters and junction boxes, on or adjacent to the Site, even if not shown or indicated in Existing Conditions Data, Contract Documents, or USA records, or discovered during Contractor’s pre- or post-bid investigation. Contractor shall immediately secure all such available information and notify Owner and the utility owner, in writing, of its discovery.

13.02 Contractor to Protect Underground Facilities
A. At all times during construction, all operating Underground Facilities shall remain in operation, unless the Contract Documents expressly indicate otherwise. Contractor shall maintain such Underground Facilities in service where appropriate; shall repair any damage to them caused by the Work; and shall incorporate them into the Work, including reasonable adjustments to the design location (including minor relocations) of the existing or new installations. Contractor shall take immediate action to restore any in service installations damaged by Contractor’s operations.

B. Prior to performing Work at the Site, Contractor shall lay out the locations of Underground Facilities that are to remain in service and other significant known underground installations indicated by the Existing Conditions Data, Contract Documents, USA records, or any material otherwise reasonably available to Contractor or discovered during Contractor’s pre- or post-bid investigations. Contractor shall further locate, by carefully excavating with small equipment, potholing and principally by hand, all such utilities or installations that are to remain and that are subject to damage. If additional utilities whose locations are unknown are discovered, Contractor shall immediately report to Owner for disposition of the same. Additional compensation or extension of time on account of utilities not shown or otherwise brought to Contractor’s attention,

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General Conditions 00 7200 - 20 Foster City Street Rehabilitation Project including reasonable action taken to protect or repair damage, shall be determined as provided in this Document 00 7200.

C. If during construction, an Underground Facility is uncovered or revealed at or contiguous to the Site which was not shown, indicated, or discovered in the materials and investigations described in Paragraph 13.02B, above, then Contractor shall, promptly after becoming aware thereof and before further disturbing conditions affected thereby (and in no event later than seven Days), and prior to performing any Work in connection therewith (except in an emergency), identify the owner of such Underground Facility and give written notice to that owner and to Owner. During such time, Contractor shall be responsible for the safety and protection of such Underground Facility.

D. The cost of all of the following will be included in the Contract Sum and Contractor shall have full responsibility for (a) reviewing and checking all available information and data including, without limitation, Existing Conditions Data, and information on file at USA; (b) locating all Underground Facilities shown or indicated in the Contract Documents or reasonably available information, or indicated by visual observation including, without limitation, and by way of example only, through performance of all pre-Bid investigations required by this Document 00 7200 and Bidding Documents and post-Bid investigations required by this Document 00 7200, and by engaging qualified locating services and all necessary backhoeing and potholing; (c) coordination of the Work with the owners of such Underground Facilities during construction; and (d) the safety and protection of all such Underground Facilities and repairing any damage thereto resulting from the Work.

E. Consistent with Government Code Section 4215, as between Owner and Contractor, Owner will be responsible for the timely removal, relocation, or protection of existing main or trunk line utility facilities located on the Site only if such utilities are not identified in the Contract Documents or information made available for bidding. Owner will compensate for the cost of locating and repairing damage not due to Contractor’s failure to exercise reasonable care, removing and relocating such main or trunk line utility facilities not indicated in the Contract Documents or information made available for bidding with reasonable accuracy, and equipment on the Project necessarily idled during such Work. Contractor shall not be assessed liquidated damages for delay in completion of the Project, when such delay was caused by the failure of Owner or the utility to provide for removal or relocation of such utility facilities.

13.03 Concealed or Unknown Conditions
A. If either of the following conditions is encountered at Site when digging trenches or other excavations that extend deeper than four feet below the surface, Contractor shall give a written Notice of Differing Site Conditions to Owner promptly before conditions are disturbed, except in an emergency as set forth in this Document 00 7200, and in no event later than seven Days after first observance of:

1. Subsurface or Latent physical conditions which differ materially from those indicated in the Contract Documents; or

2. Unknown physical conditions of an unusual nature or which differ materially from those ordinarily encountered and generally recognized as inherent in work of the character provided for in the Contract Documents.

B. In response to Contractor’s Notice of Differing Site Conditions under this Paragraph, Owner will investigate the identified conditions, and if they differ materially and cause increase or decrease in Contractor’s cost of, or time required for, performance of any part of the Work, Owner will negotiate the appropriate change order following the procedures set forth in the Contract Documents. If Owner determines that physical conditions at the Site are not Latent or are not materially different from those indicated in Contract Documents or that no change in terms of the Contract Documents is justified, Owner will so notify Contractor in writing, stating reasons (with Contractor retaining its rights under Article 12 of this Document 00 7200.) C. Contractor shall not be entitled to any adjustment in the Contract Sum or Contract Time regarding claimed Latent or materially different Site conditions (whether above or below grade) if Contractor knew or should have known of the existence of such conditions at the time Contractor submitted its Bid, failed to give proper notice, or relied upon information, conclusions, opinions or deductions of the kind that the Contract Documents preclude reliance upon.

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General Conditions 00 7200 - 21 Foster City Street Rehabilitation Project D. Regarding Underground Facilities, Contractor shall be allowed an increase in the Contract Sum or an extension of the Contract Time, or both, to the extent that they are attributable to the existence of any Underground Facility that is owned and was built by Owner only where the Underground Facility:

1. Was not shown or indicated in the Contract Documents or in the information supplied for bidding purposes or in information on file at USA; and

2. Contractor did not know of it; and

3. Contractor could not reasonably have been expected to be aware of it or to have anticipated it from the information available. (For example, if surface conditions such as pavement repairs, valve covers, or other markings, indicate the presence of an Underground Facility, then an increase in the Contract Sum or an extension of the Contract Time will not be due, even if the Underground Facility was not indicated in the Contract Documents, in the information supplied to Contractor for bidding purposes, in information on file at USA, or otherwise reasonably available to Contractor.) E. Contractor shall bear the risk that Underground Facilities not owned or built by Owner may differ in nature or locations shown in information made available by Owner for bidding purposes, in information on file at USA, or otherwise reasonably available to Contractor. Underground Facilities are inherent in construction involving digging of trenches or other excavations on Owner’s Project, and Contractor is to apply its skill and industry to verify the information available.

F. Contractor’s compensation for claimed Latent or materially different Site conditions shall be limited to the actual, reasonable, incremental increase in cost of that portion of the Work, resulting from the claimed Latent or materially different Site conditions. Such calculation shall take into account the estimated value of that portion of the Work and the actual value of that portion of the Work, using for guidance Contractor’s or its subcontractor’s bid amount and actual amounts incurred for that portion of the Work and the reasonable expectation (if any) of differing or difficult site conditions in the Work area based on the available records and locale of the Work. For example, if Contractor excavates in an area unexpected, then such costs would be recoverable entirely; while if Contractor extends an existing excavation, then such costs would be recoverable if the resulting excavation costs in that work area exceeded the reasonable expectations therefore.

13.04 Notice of Hazardous Waste or Materials Conditions A. Contractor shall give a written Notice of Hazardous Materials Condition to Owner promptly, before any of the following conditions are disturbed (except in an emergency as set forth in this Document 00 7200), and in no event later than 24 hours after first observance of any:

1. Material that Contractor believes may be hazardous waste or hazardous material, as defined in Section 25117 of the California Health and Safety Code (including, without limitation, Asbestos, lead, PCBs, petroleum and related hydrocarbons, and radioactive material) that is required to be removed to a Class I, Class II, or Class III disposal site in accordance with provisions of existing law (hazardous material); or

2. Other material that may present an imminent substantial danger to persons or property exposed thereto in connection with Work at the Site (other materials).

B. Except as otherwise provided in the Contract Documents or as provided by applicable law, Contractor shall not be required to give any notice for the disturbance or observation of any such hazardous materials or other materials where such matter is disturbed or observed as part of the scope of Work under the Contract Documents (such as hazardous waste or hazardous material investigation, remediation or disposal activities which are identified as the subject of Work under the Contract Documents), where Contractor complies with all requirements in the Contract Documents and applicable law respecting such materials.

C. Contractor’s Notice of Hazardous Materials Condition shall indicate whether the hazardous materials or other materials were shown or indicated in the Contract Documents to be within the scope of Work, and whether the hazardous materials or other materials were brought to the Site by Contractor, its Subcontractors, suppliers, or anyone else for whom Contractor is responsible.

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General Conditions 00 7200 - 22 Foster City Street Rehabilitation Project D. Contractor shall not be entitled to any adjustment in the Contract Sum or Contract Time regarding claimed hazardous waste or materials if:

1. Contractor knew of the existence of such hazardous materials or other materials at the time Contractor submitted its Bid; or

2. Contractor should have known of the existence of such hazardous material or other materials as a result of its having the responsibility to obtain additional or supplementary examinations, investigation, explorations, tests, studies, and data concerning the conditions at or contiguous to the Site prior to submitting its Bid; or

3. Contractor failed to give the written notice within the required timeframe set forth below.

E. If Owner determines that conditions involve hazardous materials or other materials and that a change in Contract Document terms is justified, Owner will issue either a Request for Proposal or Construction Change Directive under the procedures described in the Contract Documents. If Owner determines that conditions do not involve hazardous materials or other materials or that no change in Contract Document terms is justified, Owner will notify Contractor in writing, stating the reasons for its determination.

F. In addition to the parties’ other rights under this Document 00 7200, if Contractor does not agree to resume Work based on a reasonable belief that it is unsafe, or does not agree to resume Work under special conditions, Owner may order the disputed portion of Work deleted from the Work, or performed by others, or Owner may invoke its right to terminate Contractor’s right to proceed under the Contract Documents in whole or in part, for convenience or for cause as the facts may warrant.

G. If Contractor does not agree with any Owner determination of any adjustment in the Contract Sum or Contract Time under this Article, Contractor may make a claim as provided in Article 12 of this Document 00 7200.

ARTICLE 14 LEGAL AND MISCELLANEOUS

14.01 Laws and Regulations
A. Contractor shall keep fully informed of and shall comply with all laws, ordinances, regulations and orders of any properly constituted authority affecting the Contract Documents, Work and persons connected with Work, and shall protect and indemnify Owner and its officers, employees, consultants and agents against any claim or liability, including attorney’s fees, arising from or based on violation of law, ordinance, regulation or order, whether by Contractor or by Subcontractors, employees or agents. Authorized persons may at any time enter upon any part of Work to ascertain compliance of all applicable laws, ordinances, regulations and orders.

14.02 Permits and Taxes
A. Contractor shall procure all permits and licenses applicable to the Work (including environmental matters to the extent applicable); pay all charges and fees, including fees for street opening permits; comply with, implement and acknowledge effectiveness of all permits; initiate and cooperate in securing all required notifications or approvals therefore; and give all notices necessary and incident to due and lawful prosecution of Work, unless otherwise provided herein.

Owner will pay applicable building permits, sanitation and water fees for the completed construction, except as otherwise provided in the Contract Documents. Contractor shall pay all sales and/or use taxes levied on materials, supplies, or equipment purchased and used on or incorporated into Work, and all other taxes properly assessed against equipment or other property used in connection with Work, without any increase in the Contract Sum. Contractor shall make necessary arrangements with proper authorities having jurisdiction over roads, streets, pipelines, navigable waterways, railroads, and other works in advance of operations, even where Owner may have already obtained permits for the Work.

14.03 Communications and Information Distribution
A. All communications recognized under the Contract Documents shall be in writing, in the form of a serialized document, by type of communication. For example, RFIs shall be serialized beginning with RFI No. 1; payment applications shall be serialized beginning with Payment Application No.

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General Conditions 00 7200 - 23 Foster City Street Rehabilitation Project 1, submittals shall be serialized per specification section and transmitted with transmittal sheets beginning with Transmittal No. 1; and correspondence shall be serialized beginning with letter No.

1. Contractor may propose other record management and identification systems or protocols, intended to facilitate orderly transmittal of project information, storage and retrieval of such information, which Owner will review consistent with these stated objectives, and accept or reject in its sole discretion.

B. Documents Requiring Signatures. All documents requiring signatures for approval prior to implementing action, as stipulated in other portions of Contract Documents, shall require a manually signed, serialized letter delivered to the other party at its address for notice otherwise specified in the Contract Documents, either personally or by mail.

C. Electronic data transfer of such correspondence will serve to expedite preliminary concurrence of information, only. Receipt of “hard copy” signature on forms is required prior to implementing action or work as the conditions may require. For example, change orders and authorizations for extra cost, require signatures. A party may acknowledge receipt of PDF copies of required correspondence by e-mail, but in the absence of such acknowledgment, mail or personal delivery is required.

D. All emails shall be copied to Owner’s and Contractor’s Project Representative. Owner reserves the right to preclude e-mail communication, in whole or in part, as Project needs may require.

Communication between Owner and Contractor shall not be via Twitter, Facebook, or other types of instant text message systems. Any such communications shall be inadmissible for any purpose related to this Contract.

14.04 Suspension of Work
A. Owner may, without cause, order Contractor in writing to suspend, delay or interrupt Work in whole or in part for such period of time as Owner may determine. An adjustment shall be made for increases in cost of performance of Work of the Contract Documents caused by any such suspension, delay or interruption, calculated using the measures set forth in Section 01 2600 (Modification Procedures). No adjustment shall be made to extent that performance is, was or would have been so suspended, delayed or interrupted by another cause for which Contractor is responsible.

14.05 Termination of Contract for Cause
A. Owner may declare Contractor in default and terminate Contractor’s right to proceed under the Contract Documents, for cause, should Contractor be the subject of a voluntary or involuntary petition in bankruptcy or admit in writing its inability to pay debts as they may become due. The Contractor shall be in default of the Contract Documents and Owner may terminate the Contractor's right to proceed under the Contract Documents, for cause, in whole or in part, should the Contractor commit a material breach of the Contract Documents and not cure such breach within ten (10) calendar days of the date of notice from Owner to the Contractor demanding such cure; or, if such breach is curable but not curable within such ten (10) day period, within such period of time as is reasonably necessary to accomplish such cure. (In order for the Contractor to avail itself of a time period in excess of 10 calendar days, the Contractor must provide Owner within the ten (10) day period with a written cure plan acceptable to Owner that demonstrates actual resources, personnel and a schedule to promptly to cure said breach, and then diligently commence and continue such cure according to the written plan) B. If Owner at any time reasonably believes that Contractor is or may be in default under the Contract Documents as provided above, then Owner may in its sole discretion notify Contractor of this fact and request written assurances from Contractor of performance of Contract Documents and a written plan from Contractor to remedy any default under the terms of Contract Documents that Owner may advise Contractor of in writing. Contractor shall, within ten (10) Days of Owner’s request, deliver a written cure plan that meets the requirements of the written cure plan as defined above. Failure of Contractor to provide such written assurances of performance and the required written cure plan within ten (10) Days of request will constitute a material breach of Contract Documents sufficient to justify termination for cause.

C. In the event of termination by Owner for cause as provided herein, the Contractor shall deliver to Owner possession of the Work in its then condition including, without limitation, all designs,

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General Conditions 00 7200 - 24 Foster City Street Rehabilitation Project engineering, Project records, cost data of all types, plans and specifications and contracts with vendors and subcontractors, all other documentation associated with the Project, and all construction supplies and aids dedicated solely to performing the Work which, in the normal course of construction, would be consumed or only have salvage value at the end of the construction period. The Contractor shall remain fully liable for the failure of any Work completed and materials and equipment provided through the date of such termination to comply with the provisions of the Contract Documents. The provisions of this Section shall not be interpreted to diminish any right that Owner may have to claim and recover damages for any breach of the Contract Documents or otherwise, but rather, the Contractor shall compensate Owner for all loss, cost, damage, expense, and/or liability suffered by Owner as a result of such termination and/or failure to comply with the Contract Documents.

D. In the event a termination for cause is later determined to have been made wrongfully or without cause, then the termination shall be treated as a termination for convenience, and the Contractor shall have no greater rights than it would have had following a termination for convenience. Any Contractor claim arising out of a termination for cause shall be made in accord with Article 12 herein. No other loss, cost, damage, expense or liability may be claimed, requested or recovered by the Contractor.

14.06 Termination of Contract for Convenience
A. Owner may terminate performance of the Work under the Contract Documents in accordance with this clause in whole, or from time to time in part, whenever Owner shall determine that termination is in Owner’s best interest. Termination shall be effected by Owner delivering to the Contractor notice of termination specifying the extent to which performance of the Work under the Contract Documents is terminated, and the effective date of the termination.

B. Contractor shall comply strictly with Owner’s direction regarding the effective date of the termination, the extent of the termination, and shall stop work on the date and to the extent specified.

C. Contractor shall be entitled to a total payment on account of the Contract work so terminated measured by (i.) the actual cost to Contractor of Work actually performed, up to the date of the termination, with profit and overhead limited to twelve percent (12%) of actual cost of work performed, up to but not exceeding the actual contract value of the work completed as measured by the Schedule of Values and Progress Schedule, (ii.) offset by payments made and other contract credits. In connection with any such calculation, however, Owner shall retain all rights under the Contract Documents including, without limitation, claims, indemnities, or setoffs.

D. Under no circumstances may Contractor recover legal costs of any nature, nor may Contract recover costs incurred after the date of the termination.

14.07 Contingent Assignment of Subcontracts
A. Contractor hereby assigns to Owner each Subcontract for a portion of the Work, provided that:

1. The assignment is effective only after Owner’s termination of Contractor’s right to proceed under the Contract Documents (or portion thereof relating to that Subcontract) as set forth herein.

2. The assignment is effective only for the Subcontracts which Owner expressly accepts by notifying the Subcontractor in writing;

3. The assignment is subject to the prior rights, if any, of the Surety, obligated by Document 00 6113.13 (Construction Performance Bond) provided under the Contract Documents, where the Surety exercises its rights to complete the Contract;

4. After the effectiveness of an assignment, Contractor shall, at its sole cost and expense (except as otherwise provided in this Document 00 7200), sign all instruments and take all actions reasonably requested by Owner to evidence and confirm the effectiveness of the assignment in Owner; and

5. Nothing in this Paragraph shall modify or limit any of Contractor’s obligations to Owner arising from acts or omissions occurring before the effectiveness of any Subcontract assignment including, without limitation, all defense, indemnity and hold-harmless obligations arising from or related to the assigned Subcontract.

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General Conditions 00 7200 - 25 Foster City Street Rehabilitation Project

14.08 Remedies and Contract Integration
A. Subject to Contract Documents provisions regarding Contractor claims, claim review, and claim resolution, and subject to the limitations therein, the exclusive jurisdiction and venue for resolving all claims, counter claims, disputes and other matters in question between Owner and Contractor arising out of or relating to Contract Documents, any breach thereof or the Project shall be the applicable court of competent jurisdiction located in the State and County where the Project is located. All Owner remedies provided in the Contract Documents shall be taken and construed as cumulative and not exclusive; that is, in addition to each and every other remedy herein provided; and in all instances Owner shall have any and all other equitable and legal rights and remedies which it would have according to law.

B. The Contract Documents, any Contract Modifications, Change Orders and Change Directives, as further described in Section 01 2600, shall represent the entire and integrated agreement between Owner and Contractor regarding the subject matters hereof and thereof and shall constitute the exclusive statement of the terms of the parties’ agreement. The Contract Documents, and any Contract Modifications and Change Orders, shall supersede any and all prior negotiations, representations or agreements, written or oral, express or implied, that relate in any way to the subject matter of the Contract Documents or written Modifications. Owner and Contractor represent and agree that, except as otherwise expressly provided in the Contract Documents, they are entering into the Contract Documents and any subsequent written Modification in sole reliance upon the information set forth or referenced in the Contract Documents or Contract Modifications; the parties are not and will not rely on any other information, which shall be inadmissible in any proceeding to enforce these documents.

C. Either party’s waiver of any breach or failure to enforce any of the terms, covenants, conditions or other provisions of the Contract Documents at any time shall not in any way affect, limit, modify or waive that party’s right thereafter to enforce or compel strict compliance with every term, covenant, condition or other provision hereof, any course of dealing or custom of the trade or oral representations notwithstanding.

D. Neither acceptance of the whole or any part of Work by Owner nor any verbal statements on behalf of Owner or its authorized agents or representatives shall operate as a waiver or modification of any provision of the Contract Documents, or of any power reserved to Owner herein nor any right to damages provided in the Contract Documents.

14.09 Interpretation
A. Should any part, term or provision of this Contract or any of the Contract Documents, or any document required herein or therein to be executed or delivered, be declared invalid, void or unenforceable, all remaining parts, terms and provisions shall remain in full force and effect and shall in no way be invalidated, impaired or affected thereby. If the provisions of any law causing such invalidity, illegality or unenforceability may be waived, they are hereby waived to the end that this Contract and the Contract Documents may be deemed valid and binding agreements, enforceable in accordance with their terms to the greatest extent permitted by applicable law. In the event any provision not otherwise included in the Contract Documents is required to be included by any applicable law, that provision is deemed included herein by this reference (or, if such provision is required to be included in any particular portion of the Contract Documents, that provision is deemed included in that portion).

B. Contract Documents shall not be construed to create a contractual relationship of any kind between (i) Project Manager or any Owner’s representative and Contractor; (ii) Owner and/or its Representatives and a Subcontractor, sub-Subcontractor, or supplier of any Project labor, materials, or equipment; or (iii) between any persons or entities other than Owner and Contractor.

14.10 Patents
A. Fees or claims for any patented invention, article or arrangement that may be used upon or in any manner connected with performance of the Work or any part thereof shall be included in the Bid

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General Conditions 00 7200 - 26 Foster City Street Rehabilitation Project price for doing the Work. Contractor shall defend, indemnify and hold harmless Owner and each of its officers, employees, consultants and agents including, without limitation, the Board and each Owner’s Representative, from all damages, claims for damages, costs or expenses in law or equity, including attorney’s fees, arising from or relating to any claim that any article supplied or to be supplied under the Contract Documents infringes on the patent rights, copyright, trade name, trademark, service mark, trade secret or other intellectual property right of any person or persons or that the person or entity supplying the article does not have a lawful right to sell the same.

Such costs or expenses for which Contractor agrees to indemnify and hold harmless the above indemnities include but are not limited to any and all license fees, whether such fees are agreed by any indemnitee or ordered by a court or administrative body of any competent jurisdiction.

14.11 Substitution for Patented and Specified Articles
A. Except as noted specifically in Document 00 2113 (Instructions to Bidders) or in Contract Documents, whenever in Specifications, material or process is designated by patent or proprietary name or by name of manufacturer, such designation shall be deemed to be used for purpose of facilitating description of material and process desired, and shall be deemed to be followed by the words “or Approved Equal.” Contractor may offer any substitute material or process that Contractor considers “Equal” in every respect to that so designated and if material or process offered by Contractor is, in opinion of Owner, Equal in every respect to that so designated, its use will be approved. However, Contractor may utilize this right only by timely submitting Document 00 6325 (Substitution Request Form) as provided in Document 00 2113 (Instructions to Bidders). A substitution will be approved only if it is a true “or Equal” item in every aspect of its design and quality including, without limitation, its dimensions, weights, service requirements, durability, functioning, impact on contiguous construction elements, overall schedule and design.

14.12 Interest of Public Officers
A. No representative, officer, or employee of Owner no member of the governing body of the locality in which the Project is situated, no member of the locality in which Owner was activated, and no other public official of such locality or localities who exercises any functions or responsibilities with respect to the Project, during the tenure of the official or for one year thereafter, shall, as principal, agent, attorney or otherwise, be directly or indirectly interested, in the Contract Documents or the proceeds thereof.

14.13 Limit of Liability
A. OWNER, AND EACH OF ITS OFFICERS, BOARD MEMBERS, EMPLOYEES, CONSULTANTS

AND AGENTS INCLUDING, WITHOUT LIMITATION, PROJECT MANAGER AND EACH OTHER

OWNER REPRESENTATIVE, SHALL HAVE NO LIABILITY TO CONTRACTOR FOR SPECIAL,

CONSEQUENTIAL, OR INCIDENTAL DAMAGES, EXCEPT TO THE LIMITED EXTENT THAT

THESE CONTRACT DOCUMENTS OR APPLICABLE PUBLIC CONTRACTING STATUTES MAY SPECIFY THEIR RECOVERY.

14.14 Public Records Act.

A. Contractor is aware that this Contract and any documents provided to the Owner may be subject to the California Public Records Act and may be disclosed to members of the public upon request. It is the responsibility of Contractor to clearly identify information in those documents it considers to be confidential under the California Public Records Act. To the extent that Owner agrees with that designation, such information will be held in confidence whenever possible. All other information will be considered public.

ARTICLE 15 WORKING CONDITIONS AND PREVAILING WAGES

15.01 Use of Site/Sanitary Rules

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General Conditions 00 7200 - 27 Foster City Street Rehabilitation Project A. All portions of the Work shall be maintained at all times in neat, clean and sanitary condition.

Contractor shall furnish toilets for use of Contractor’s and Subcontractors’ employees on the Site where needed, and their use shall be strictly enforced. All toilets shall be properly secluded from public observation, and shall be located, constructed and maintained subject to Owner’s approval.

B. Contractor shall confine construction equipment, the storage of materials and equipment and the operations of workers to the Site and land areas identified in and permitted by Contract Documents and other land and areas permitted by applicable laws and regulations, rights of way, permits and easements or as designated by Owner, and shall not unreasonably encumber the premises with construction equipment or other materials or equipment. Contractor shall assume full responsibility for any damage to any such land or area, any improvement located thereon, or to Owner or occupant thereof resulting from the performance of Work.

C. During the progress of the Work, Contractor shall keep the Site and the Project free from accumulations of waste materials, rubbish and other debris resulting from the Work. At the completion of the Work, Contractor shall clean the site, remove all waste materials, rubbish and debris from and about the Site as well as all tools, appliances, construction equipment and machinery and surplus materials. Contractor shall leave the premises clean and ready for occupancy by Owner at Substantial Completion of Work. Contractor shall restore to original condition all property not designated for alteration by Contract Documents.

D. Contractor shall not load nor permit any part of any structure or pavement to be loaded in any manner that will endanger the structure or pavement, nor shall Contractor subject any part of Work or adjacent property to stresses or pressures that will endanger it. Contractor shall conduct all necessary existing conditions investigation regarding structural, mechanical, electrical or any other system existing, shall perform Work consistent with such existing conditions, and shall have full responsibility for insufficiencies or damage resulting from insufficiencies of existing systems, equipment or structures to accommodate performing the Work.

15.02 Protection of Work, Persons, and Property
A. Contractor shall be responsible for initiating, maintaining and supervising all safety and site security precautions and programs in connection with Work, and shall develop and implement a site security and safety plan throughout construction. Contractor shall comply with all safety requirements specified in any safety program established by Owner, or required by state, federal or local laws and ordinances. Contractor shall be responsible for all theft or damage to Work, property or structures, and all injuries to persons, either on the Site or constituting the Work (e.g., materials in transit), arising from the performance of Work of the Contract Documents from a cause.

B. Contractor shall comply with all applicable laws and regulations of any public body having jurisdiction for safety of persons or property or to protect them from damage, injury or loss; and shall erect and maintain all necessary safeguards for such safety and protection. Contractor shall notify Owners of adjacent property and of Underground Facilities and utility Owners when prosecution of the Work may affect them, and shall cooperate with them in the protection, removal, relocation and replacement of their property.

C. Contractor shall remedy all damage, injury or loss to any property referred to above in this Article, caused, directly or indirectly, in whole or in part, by Contractor, any Subcontractor, supplier, or any other person or organization directly or indirectly employed by any of them to perform or furnish any Work or anyone for whose acts any of them may be liable. Contractor’s duties and responsibility for safety and for protection of Work shall continue until such time as all the Work is completed and Final Acceptance of the Work. Owner and its agents do not assume any responsibility for collecting any indemnity from any person or persons causing damage to Contractor’s Work.

D. Contractor shall designate a qualified and experienced safety representative at the Site whose duties and responsibilities shall be the prevention of accidents and the maintaining and supervising of safety precautions and programs.

E. Owner may, at its option, retain such moneys due under the Contract Documents as Owner deems necessary until any and all suits or claims against Contractor for injury to persons or property shall be settled and Owner receives satisfactory evidence to that effect.

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General Conditions 00 7200 - 28 Foster City Street Rehabilitation Project F. Work within the right-of-way lines of any City, County and/or State shall be done in accordance with the standards and specifications of the controlling agency. Permit for such work shall be obtained and paid for by the Contractor before executing the work within such right-of-ways.

15.03 Responsibility For Safety and Health
A. Contractor shall ensure that its and each tier of Subcontractors’ employees, agents and invitees comply with applicable health and safety laws while at the Site. These laws include the Occupational Safety and Health Act of 1970 and rules and regulations issued pursuant thereto, and Owner’s safety regulations as amended from time to time. Contractor shall comply with all Owner directions regarding protective clothing and gear.

B. Contractor shall be fully responsible for the safety of its and its Subcontractors’ employees, agents and invitees on the Site. Contractor shall notify Owner, in writing, of the existence of hazardous conditions, property or equipment at the Site that are not under Contractor’s control.

Contractor shall be responsible for taking all the necessary precautions against injury to persons or damage to the property of Contractor, Subcontractors or persons from recognized hazards until the responsible party corrects the hazard.

C. Contractor shall confine all persons acting on its or its Subcontractors’ behalf to that portion of the Site where Work under the Contract Documents is to be performed, Owner-designated routes for ingress and egress thereto, and any other Owner-designated area. Except those routes for ingress and egress over which Contractor has no right of control, within such areas, Contractor shall provide safe means of access to all places at which persons may at any time have occasion to be present.

15.04 Emergencies
A. In emergencies affecting the safety or protection of persons or Work or property at the Site or adjacent thereto, Contractor, without special instruction or authorization from Owner, is obligated to act to prevent threat and damage, injury or loss, until directed otherwise by Owner. Contractor shall give Owner prompt written notice if Contractor believes that any significant changes in Work or variations from Contract Documents have been caused thereby. If Owner determines that a change in the Contract Documents is required because of the action taken by Contractor in response to such an emergency, a Change Order or Construction Change Directive will be issued to document the consequences of such action.

15.05 Use of Roadways and Walkways
A. Contractor shall not unnecessarily interfere with use of any roadway, walkway or other facility for vehicular or pedestrian traffic. Before beginning any interference and only with Owner’s prior concurrence, Contractor may provide detour or temporary bridge for traffic to pass around or over the interference, which Contractor shall maintain in satisfactory condition as long as interference continues. Unless otherwise provided in the Contract Documents, Contractor shall bear the cost of these temporary facilities.

15.06 Nondiscrimination
A. No person or entity shall discriminate in the employment of persons upon public works because of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, marital status, sexual preference, or gender of such persons, except as provided in Government Code Section 12940. Every contractor for public works violating the provisions of Labor Code Section 1735 is subject to all the penalties imposed for a violation of Chapter 1, Part 7, Division 2 of the California Labor Code.

15.07 Prevailing Wages and Working Hours
A. Contractor shall pay to persons performing labor in and about Work provided for in the Contract Documents an amount equal to or more than the general prevailing rate of per diem wages for (i) work of a similar character in the locality in which the Work is performed and (ii) legal holiday and overtime work in said locality. The per diem wages shall be an amount equal to or more than the stipulated rates contained in a schedule that has been ascertained and determined by the Director of the State Department of Industrial Relations and Owner to be the general prevailing

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General Conditions 00 7200 - 29 Foster City Street Rehabilitation Project rate of per diem wages for each craft or type of workman or mechanic needed to execute this Contract. Contractor shall also cause a copy of this determination of the prevailing rate of per diem wages to be posted at each Site.

B. Contractor shall forfeit, as a penalty to Owner, $200.00 for each laborer, worker, or mechanic employed in performing labor in and about the Work provided for in the Contract Documents for each Day, or portion thereof, that such laborer, worker or mechanic is paid less than the said stipulated rates for any Work done under the Contract Documents by him or her or by any Subcontractor under him or her, in violation of Articles 1 and 2 of Chapter 1 of Part 7 of Division II of the Labor Code. The sums and amounts that are forfeited pursuant to this Paragraph and the terms of the Labor Code shall be withheld and retained from payments due to Contractor under the Contract Documents, pursuant to this Document 00 7200 and the Labor Code, but no sum shall be so withheld, retained or forfeited except from the final payment without a full investigation by either the State Department of Industrial Relations or by Owner. The Labor Commissioner pursuant to Labor Code Section 1775 shall determine the final amount of forfeiture.

C. Contractor shall insert in every subcontract or other arrangement which Contractor may make for performance of Work or labor on Work provided for in the Contract, provision that Subcontractor shall pay persons performing labor or rendering service under subcontract or other arrangement not less than the general prevailing rate of per diem wages for work of a similar character in the locality in which the Work is performed, and not less than the general prevailing rate of per diem wages for holiday and overtime work fixed in the Labor Code.

D. Contractor stipulates that it shall comply with all applicable wage and hour laws, including without limitation, Labor Code Sections 1776 and 1810-1815. Failure to so comply shall constitute a default under this Contract.

E. Contractor and its Subcontractors shall be responsible for compliance with Labor Code Sections 1810-1815.

1. Eight hours of labor performed in execution of the Contract constitutes a legal day’s work.

The time of service of any worker employed on the Project is limited and restricted to 8 hours during any one calendar day, and 40 hours during any one calendar week.

2. Contractor and its Subcontractors shall keep an accurate record showing the name of and actual hours worked each calendar day and each calendar week by each worker employed by him or her in connection with the Project. The record shall be kept open at all reasonable hours to the inspection Owner and to the Division of Labor Standards Enforcement.

3. Contractor or its Subcontractors shall, as a penalty to Owner, forfeit twenty-five dollars ($25) for each worker employed in the execution of the Contract Documents by the respective Contractor or Subcontractor for each calendar day during which the worker is required or permitted to work more than 8 hours in any one calendar day and 40 hours in any one calendar week in violation of the provisions of Labor Code Sections 1810-1815.

4. Work performed on the Project by employees of Contractor or its Subcontractors in excess of 8 hours per day, and 40 hours during any one week, shall be permitted upon compensation for all hours worked in excess of 8 hours per day at not less than 1 1/2 times the basic rate of pay.

F. Contractor and its Subcontractors shall be responsible for compliance with Labor Code Section 1776. This Project is subject to prevailing wage compliance monitoring and enforcement by the Department of Industrial Relations.

1. Contractor and Subcontractors must keep accurate payroll records, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by him or her in connection with the Work of the Contract Documents. Each payroll record shall contain or be verified by a written declaration as required by Labor Code Section 1776.

2. The payroll records enumerated above must be certified and shall be available for inspection at all reasonable hours at the principal office of the Contractor as required by Labor Code Section 1776.

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General Conditions 00 7200 - 30 Foster City Street Rehabilitation Project (a) Contractor shall inform Owner of the location of records enumerated above, including the street address, city and county, and shall, within five working days, provide a notice of a change of location and address.
(b) Contractor or Subcontractor has 10 days in which to comply subsequent to receipt of a written notice requesting the records enumerated above. In the event that the Contractor or Subcontractor fails to comply with the ten-day period, he or she shall, as a penalty to Owner on whose behalf the contract is made or awarded, forfeit $100.00 for each calendar day, or portion thereof, for each worker, until strict compliance is effectuated. Upon the request of the Division of Apprenticeship Standards or the Division of Labor Standards Enforcement, these penalties shall be withheld from progress payments then due. Contractor is not subject to a penalty assessment pursuant to this Paragraph due to the failure of a Subcontractor to comply with this Paragraph.

3. With each payment application, Contractor shall also deliver certified payrolls to Owner as set forth above in this Document 00 7200 (General Conditions), and concurrently therewith (but in no event less frequently than monthly) directly to the Labor Commissioner in the format prescribed by the Labor Commissioner.

4. Contractor shall post all jobsite notices if and when prescribed by regulation.

15.08 Environmental Controls
A. Contractor shall comply with all rules, regulations, ordinances, and statutes that apply to any Work performed under the Contract Documents including, without limitation, any toxic, water, stormwater management and soil pollution controls and air pollution controls specified in Government Code Section 11017. Contractor shall be responsible for insuring that Contractor’s Employees, Subcontractors, and the public are protected from exposure to airborne hazards or contaminated water, soil, or other toxic materials used during or generated by activities on the Site or associated with the Project.

15.09 Shoring Safety Plan
A. Any conflict between this Paragraph and the Technical Specifications shall be resolved in favor of the most stringent requirement.

B. At least five Days in advance of any excavation five feet or more in depth, Contractor shall submit to Owner a detailed plan showing the shoring, bracing and sloping design (including calculations) and other provisions to be made for worker protection from the hazard of caving ground during the excavation, as required by Labor Code Section 6705. A civil or structural engineer registered in California shall prepare and sign any plan that varies from the shoring system standards established by the State Construction Safety Orders.

C. During the course of Work, Contractor shall be responsible for determining where sloping, shoring, and/or bracing is necessary and the adequacy of the design, installation, and maintenance of all shoring and bracing for all excavation, including any excavation less than five feet in depth. Contractor will be solely responsible for any damage or injuries that may result from excavating or trenching. Owner’s acceptance of any drawings showing the shoring or bracing design or Work schedule shall not relieve Contractor of its responsibilities under this Paragraph.

D. Appoint a qualified supervisory employee who shall be responsible to determine the sloping or shoring system to be used depending on local soil type, water table, stratification, depth, etc.

END OF DOCUMENT

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Supplemental General Conditions 00 7301 - 1 Foster City Street Rehabilitation Project DOCUMENT 00 7301

SUPPLEMENTAL GENERAL CONDITIONS
PART 1 - GENERAL

1.1 DEFINITIONS
Wherever in the specifications and other contract documents the following terms or pronouns in place of them are used, the intent and meaning shall be interpreted as follows:

A. City/District: The City of Foster City/Estero Municipal Improvement District.

B. Council: The City Council of the City of Foster City.

C. Board of Directors: The Board of Directors of the Estero Municipal Improvement District.

D. Proposer: Any individual, partnership, joint venture, or corporation submitting a proposal for the work contemplated, acting directly or through a duly authorized representative.

E. Contractor: The individual, partnership, joint venture, or corporation with whom the contract is made by the City/District.

F. Engineer: The City/District Engineer acting directly or through properly authorized agents, such agents acting within the scope of the particular duties entrusted to them. See Paragraph 1.08 regarding the authority of the Engineer.

G. Manager: The City Manager or District Manager of the City of Foster City/Estero Municipal Improvement District.

H. Days: Unless otherwise designated, days as used in the specifications will be understood to mean calendar days.

1.2 TRANSFER OF INTEREST
No interest in the contract shall be transferred to any other party without permission of the City.

1.3 WORKING HOURS
A. Work or activity of any kind shall be limited to the hours from 8:00AM to 4:00PM, Monday through Friday, except as otherwise stipulated in the contract documents. Work hours shall be limited to 9:00AM to 3:00PM on all Boulevards.

B. Work in excess of eight hours per day, on Saturdays, on Sundays, or on City holidays requires prior consent of the Engineer and is subject to Cost of Overtime Construction Inspection.

C. City holidays are:

New Year’s Day
Martin Luther King's Birthday
Presidents’ Day (3rd Monday in February)
Memorial Day (last Monday in May)
Independence Day
Labor Day
Veteran's Day

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Supplemental General Conditions 00 7301 - 2 Foster City Street Rehabilitation Project Thanksgiving Day and following Friday
Christmas Eve
Christmas Day
New Year's Eve

1.4 SUBCONTRACTORS
A. When requested, the Contractor shall furnish the name and address of each subcontractor contracting directly with the Contractor, together with a statement showing the character and location of the work, time limit, if any, and if requested, the amount of money involved in each subcontract. Each subcontract shall contain a reference to the contract between the City and the principal Contractor, and the terms of the contract and all parts thereof shall be made part of each subcontract insofar as applicable to the work covered thereby.

Each subcontract shall provide for its annulment at the order of the Engineer, if, in the Engineer's opinion, the subcontractor fails to comply with the requirements of the principal contractor insofar as the same may be applicable to the Contractor's work.

B. Nothing contained in this Specification shall be construed as creating any contractual relationship between any subcontractor and the City. The sections of this Specification are not intended to control the Contractor in dividing the work among subcontractors or to limit the work performed by any trade.

C. The Contractor shall be considered the employer of and as fully responsible to the City for the acts and omissions of subcontractors and of persons employed by them as the Contractor is for the acts and omissions of persons directly employed by the Contractor.

D. The Contractor shall be responsible for the coordination of the trades, subcontractors, and material personnel engaged upon the Contractor's work. It shall be the Contractor's duty to see that all of the subcontractors commence their work at the proper time and carry it on with due diligence so that they do not delay or injure either the work or materials; and that all damage caused by them or their workers is made good by them or by the Contractor at the Contractor's expense.

E. The City will not undertake to settle differences between the Contractor and their subcontractors or between subcontractors.

F. The Contractor shall utilize the services of specialty subcontractors, without additional expense to the City, on those parts of the work which are specified to be performed by specialty contractors.

1.5 CHANGES
A. General:

The City reserves the right to make such alterations, deviations, additions to or deletions from the drawings and specifications, including the right to increase or decrease the quantity of any item or portion of work or to omit any item or portion of the work, and to require such changes in the work as are determined by the Engineer to be necessary or advisable for proper completion or construction of the whole work contemplated.

Work will be issued to the Contractor as a Work Order on an as-needed basis during the two year contract period. Each Work Order will identify the location and type of work to be performed, the effective date for commencement of work, specific work item quantities and the Work Order amount based on the unit prices listed in the Contractor’s Proposal Schedule. The Contractor shall complete any given work order within thirty (30) calendar days of commencement of work.

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Supplemental General Conditions 00 7301 - 3 Foster City Street Rehabilitation Project B. Increases or Decreases in Unit Price Quantities:

1. Increased or Decreased Quantities:

Increases or decreases in the quantity of a contract item of work will be determined by comparing the quantity of work as listed in the proposal schedule with the actual quantity of work performed by the Contractor, as measured by the Engineer. The City shall have the right to make changes in the plans and/or specifications and the Contractor shall perform the work as changed.

No adjustment to the unit price for any item in the Proposal Schedule shall be made in the event the number of repair locations are increased or decreased from the scheduled maintenance program. All work performed shall be measured and paid based on the contract unit price included in the proposal schedule.

2. Eliminated Items:
a. The City of Foster City reserves the right to eliminate any of the scheduled work. The unit price shall not be subject to change based on the deletion of work.

Unit Prices shall apply to Work covered by unit prices so long as actual quantities performed on the Project are not less than 75 percent or greater than 125 percent of the estimated quantities bid or otherwise stated in the Contract Documents. If actual quantities exceed these parameters, then the unit price shall be adjusted by an amount to reflect the Contractor’s incremental cost differential resulting from increased or decreased economies of scale.

Should any contract item of the work be eliminated in its entirety, unless otherwise provided for in the contract, payment will be made to the Contractor for actual costs incurred in connection with such eliminated contract item if incurred prior to the date of notification in writing by the Engineer of such elimination.

The City shall have the right for the partial or full removal of Bid Alternate 1 and 2 from the scope of work and will not provide compensation for removed items.
a. If acceptable material is ordered by the Contractor for the eliminated item prior to the date of notification of such elimination by the Engineer, and if orders for such material cannot be canceled, it will be paid for at the actual cost to the Contractor. In such case, the material paid for shall become the property of the City and the actual cost of any further handling will be paid for. If the material is returnable to the vendor and if the Engineer so directs, the material shall be returned and the Contractor will be paid for the actual cost of charges made by the vendor for returning the material.

The actual cost of handling returned material will be paid for. Written documentation of costs of cancellation or return must be submitted. b. The actual costs or charges to be paid by the City to the Contractor as provided in this section will be computed based on the unit prices listed in the Proposal Schedule.

C. Protest Procedure (Change Orders):

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1. Should the Contractor disagree with any terms or conditions set forth in an approved change order which the Contractor has not executed, the Contractor shall submit a written protest to the Engineer within 15 calendar days after the receipt of such approved contract change order. The protest shall state the points of disagreement, contract references, quantities, and costs involved. The Engineer shall consider and investigate such protest within a reasonable time. If a written protest is not submitted, adjustment of the contract time and payment will be made as set forth in the approved contract change order and shall constitute full compensation for all work included therein or required thereby. An unprotested change order will be considered as an executed contract change order.

2. When the protest concerning an approved change order relates to compensation, the Contractor shall keep full and complete records of the costs of such work and shall permit the Engineer to have such access thereto as may be necessary to assist in the determination of the compensation payable for such work.

3. When the protest concerning an approved work order relates to the adjustment of contract time for the completion of the work, the time to be allowed will be determined as provided in Paragraph 1.15 of this section.

D. Extra Work:

Extra work will not be paid for unless ordered in writing by the Engineer. When authorized, extra work will be paid for in accordance with the Proposal Schedule or by a negotiated adjustment.

E. REPORTING, INVOICING, AND PAYMENT

1. All work shall be reported monthly upon Total Work Order Sheets furnished by the Engineer to the Contractor and signed by both parties, which monthly reports shall thereafter be considered the true record of work done.

2. Contractor shall submit a record of work completed with each payment request.

Record of work shall include detailed invoices. Those not so detailed will not be processed for payment until details are furnished.

3. Completed work shall be paid for on a monthly basis by Contract Change Order.

1.6 COST OF OVERTIME CONSTRUCTION INSPECTION
Overtime construction work performed at the option of, or for the convenience of, the Contractor will be inspected by the City at the expense of the Contractor. For any such overtime beyond the regular 8-hour day and for any time worked on Saturday, Sunday, or holidays, the charges for City personnel will be as shown in the currently adopted rate schedule, available at the Public Works office. There will be no charges for the inspection of overtime work ordered by the Engineer. ALL OVERTIME MUST BE APPROVED BY THE CITY ENGINEER.

1.7 CHANGES AT THE CONTRACTOR'S REQUEST
If the Contractor, on account of conditions developing during the progress of the work, finds it impracticable to comply strictly with this Specification and applies in writing for a modification of the requirements or of methods of work, such change may be authorized by the Engineer, if not detrimental to the work and if without additional cost to the City. The Contractor's written request for deviation shall be submitted prior to the start of affected work with enough time allowed to give

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Supplemental General Conditions 00 7301 - 5 Foster City Street Rehabilitation Project the Engineer a reasonable review period. Only written authorization from the Engineer will permit deviations from the specifications.

1.8 AUTHORITY OF THE ENGINEER
A. On all questions concerning the acceptability of material or machinery, the classification of material, the execution of the work, and conflicting interests of contractors performing related work, the decision of the Engineer shall be final and binding upon both parties, except in the case of gross error.

B. The Engineer will make periodic observations of materials and completed work to observe their compliance with plans, specifications, and design and planning concepts, but the Contractor shall be responsible for the superintendence of construction processes, coordination of subcontractors or materials, site conditions, operations, equipment, personnel, or the maintenance of a safe place to work or any safety in, on, or about the site of the work.

C. Authority and Duties of Engineer's Field Representatives:

1. Field representatives of the Engineer may be stationed on the project site to report to the Engineer as to the progress of the work, the manner in which it is being performed, and to report whenever it appears that material furnished and work performed by the Contractor fail to fulfill the requirements of the contract documents. The representative may direct the attention of the Contractor to such failure or infringement but such construction review shall not relieve the Contractor from any obligation to furnish acceptable materials or to provide completed construction in a safe and satisfactory manner in every particular.

2. In case any dispute arises between the Engineer's field representative and the Contractor as to materials furnished or the satisfactory performance of the work, the representative shall have the authority to reject materials or recommend suspension of the work by the Engineer until the question and issue can be referred to and decided by the Engineer. Such authority, however, shall not give rise to any duty on the part of Engineer's field representative to exercise this right for the benefit of Contractor or any other party. Field representatives are not authorized to revoke, alter, enlarge, relax or release any requirements of the contract documents nor to issue instructions contrary to the contract documents.

Field representatives shall in no case act as foremen, superintendents, or perform other duties for the Contractor or interfere with the management of the work by the Contractor.

1.9 INSPECTION BY CITY, QUALITY ASSURANCE BY CONTRACTOR, TESTING A. All materials furnished and work done under this contract will be subject to inspection. The Contractor shall furnish, without extra charge, the necessary test pieces and samples, including facilities and labor for obtaining them, as requested by the Engineer. Work or material that does not conform to the specifications may be rejected at any stage of the work notwithstanding previous inspections by the Engineer.

B. Quality control of the work to ensure compliance with the contract documents is the responsibility of the Contractor. Testing and inspection of the work, or the lack thereof, by the City does not relieve the Contractor of the responsibility to provide a quality assurance program to ensure compliance with the contract documents.

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Supplemental General Conditions 00 7301 - 6 Foster City Street Rehabilitation Project C. The Engineer may perform or have the Contractor perform tests of material and equipment to demonstrate compliance with the contract documents. If such tests were not required to be performed by the Contractor by the contract documents, the cost of testing will be paid for by the City when tests show that materials or equipment comply with the contract documents, and shall be paid for by the Contractor when tests show that materials or equipment fail to comply with the contract documents.

1.10 DATA TO BE FURNISHED BY THE CONTRACTOR
The Contractor shall furnish the Engineer reasonable facilities for obtaining such information as the Engineer may desire respecting the character of the materials and the progress and manner of work, including information necessary to determine its costs, such as the number of personnel employed, their pay, the time during which they worked on the various classes of construction, and other pertinent data.

1.11 SUPERINTENDENCE
A. The Contractor shall designate in writing before starting work one authorized representative who shall have the authority to represent and act for the Contractor.

B. Said authorized representative shall be present at the site of the work at all times while work is actually in progress on the contract. When work is not in progress and during periods when work is suspended, arrangements acceptable to the Engineer shall be made for any emergency work which may be required. The superintendent or foreman in charge shall be deemed to be the authorized representative of the Contractor and accepts such orders on behalf of the Contractor.

1.12 SPECIFICATIONS AND DRAWINGS
The Contractor shall keep on the work a copy of all specifications, drawings, and change orders pertaining to the work and shall at all times give the Engineer access thereto. Anything mentioned in the specifications and not shown on the drawings or shown on the drawings and not mentioned in the specifications shall be of like effect as though shown or mentioned in both.

1.13 LINES, GRADES, AND MEASUREMENTS
All lines and grades shall be established by the Contractor. The cost of surveying to establish lines and grades shall be included in the various items of work and no separate payments will be made.

1.14 RIGHT OF WAY
A. The site for the installation of equipment or the right of way for the works to be constructed under this contract will be provided by the City.

B. The City will provide the appropriate rights of way and property for pipelines and structures.

The Contractor will be held responsible for any damage to structures, streets, and roads, and for any damage that may result from the Contractor's use of City property.

C. In case areas in addition to those available on the City’s right of way or property are required by the Contractor for the Contractor's operations, the Contractor shall make arrangements with the property owners for the use of such additional areas at the Contractor's own expense.

1.15 DELAYS AND EXTENSION OF TIME

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Supplemental General Conditions 00 7301 - 7 Foster City Street Rehabilitation Project A. If any delay having a direct effect on the work is caused by factors within the Contractor's control, it is non-excusable and the Contractor will not be entitled to compensation for damages resulting directly or indirectly therefrom, or for any extension of time.

B. If any delay having a direct effect on the work is caused by unusually severe weather conditions, including periods exceeding the "Normal Rainfall Days", or by strikes, or act of God, such delay may be excusable and may entitle the Contractor to an equivalent extension of time, provided that the Contractor has taken reasonable precautions to foresee and prevent delays due to such causes and provided that the Contractor has notified the Engineer in writing of the causes of the delay within 7 calendar days from the beginning of any such delay. In such event the Contractor shall be entitled to time only.

Additional costs incurred because of the delay will be paid for by the Contractor at no additional cost to the City.

1. No extension of time will be granted for normal rainfall. However, during the specified contract time, a day-for-day extension of time will be given for each day the rainfall is in excess of 0.1 inch of rain when the total number of rainy days (0.1 inch or greater) exceed the normal based on monthly precipitation records for the previous 10-year period from the weather recording station at the San Francisco International Airport.

Normal number of rain days for which rainfall has exceeded 0.1 inches for the 10-year period from 2006 to 2015 is as follows:

Jan Feb Mar Apr May Jun July Aug Sept. Oct. Nov. Dec.
5 7 6 4 1 1 0 0 0 2 4 8
C. If any delay having a direct effect on the work is caused by the specific orders of the Engineer to stop work, or by the performance of extra work ordered by the Engineer, or by failure of the City to provide material, or necessary instructions for carrying on the work, or to provide the necessary right of way or site for installation, or failure of a utility to remove or relocate an existing facility, such delay may be compensable and may entitle the Contractor to an equivalent extension of time, and may entitle the Contractor to damages resulting directly from any of the causes of delay hereinabove specified or from delays or hindrances to the work, provided that the Contractor has taken reasonable precautions to prevent delays due to such causes and provided that the Contractor has notified the Engineer in writing of the causes of the delay within 10 calendar days from the beginning of any such delay.

D. When a Contractor experiences two concurrent delays, one compensable and the other non-compensable, no compensation other than time extensions will be allowed.

E. An extension of time must be approved by the Engineer to be effective, but an extension of time whether with or without consent of the sureties, shall not release the sureties from their obligations, which shall remain in full force until the discharge of the contract.

1.16 CLIMATIC CONDITIONS
The Engineer may order the Contractor to suspend any work that may be subject to damage by climatic conditions. In such event the Contractor shall be entitled to time only. Additional costs incurred because of the delay will be paid for by the Contractor at no additional cost to the City.

When delay is caused by an order to suspend work given on account of climatic conditions that could have been reasonably foreseen, the Contractor will not be entitled to any extension of time on account of such order.

1.17 ROADS AND FENCES

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Supplemental General Conditions 00 7301 - 8 Foster City Street Rehabilitation Project Roads subject to interference from the work covered by this contract shall be kept open, and the fences subject to interference shall be kept up by the Contractor until the work is finished.

1.18 INFRINGEMENT OF PATENTS
The Contractor shall hold and save the City, its officers, agents, servants, and employees harmless from and against all and every demand or demands, of any nature or kind, for or on account of the use of any patented invention, process, equipment, article, or appliance employed in the execution of the work or included in the material or supplies agreed to be furnished under the contract, and should the Contractor, the Contractor's agents, servants, or employees, or any of them, be enjoined from furnishing or using any inventions, processes, equipment, articles, materials, supplies, or appliances supplied or required to be supplied or used under this contract, the Contractor shall promptly substitute other inventions, processes, equipment, articles, materials, supplies, or appliances in lieu thereof, of equal efficiency, quality, finish, suitability, and market value, and satisfactory in all respects to the Engineer. Or in the event that the Engineer elects, in lieu of such substitution, to have supplied, and to retain and use, any such inventions, processes, equipment, articles, materials, supplies, or appliances, as may by this contract be required to be supplied and used, the Contractor shall at the Contractor's expense pay such royalties and secure such valid licenses as may be requisite and necessary to enable the City, its officers, agents, servants, and employees, or any of them, to use such inventions, processes, equipment, articles, materials, supplies, or appliances without being disturbed or in any way interfered with by any proceeding in law or equity on account thereof. Should the Contractor neglect or refuse promptly to make the substitution hereinbefore required, or to pay such royalties and secure such licenses as may be necessary and requisite for the purpose aforesaid, then in that event the Engineer shall have the right to make such substitution, or the City may pay such royalties and secure such licenses and charge the cost thereof against any money due the Contractor from the City, or recover any amount thereof from the Contractor and the Contractor's surety, notwithstanding final payment under this contract may have been made.

1.19 PROTECTION OF PERSONS AND PROPERTY
A. Contractor's Responsibility:

Notwithstanding any other provision of these specifications, the Contractor shall be solely and completely responsible for conditions of the job site, including safety of all persons and property, during performance of the work. This requirement will apply continuously and will not be limited to normal working hours. Safety and sanitary provisions shall conform to applicable Federal, State, County, and local laws, regulations, ordinances, standards, and codes. Where any of these are in conflict, the more stringent requirement shall be followed.

B. Public Safety:

During the performance of the work, the Contractor shall erect and maintain all necessary temporary fences, bridges, railings, lights, signals, barriers, or other safeguards as shall be appropriate under the circumstances in his judgment for the prevention of accidents; and the Contractor shall take other precautions as necessary for public safety including, but not limited to, traffic control.

C. Engineer's Responsibility:

1. The Engineer's review of the Contractor's construction performance is not intended to include review of the adequacy of the Contractor's safety or sanitary measures in, on, or near the construction site. The City assumes no responsibility for the inspection of safety precautions or for the enforcement of safety precautions required by law.

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2. The Engineer may suspend operations if the Contractor determines that an imminent safety hazard exists.

1.20 CONTRACTOR'S FINANCIAL OBLIGATION
The Contractor shall promptly make payments to all persons supplying labor and materials in the execution of the contract.

1.21 PROTESTS - CONTRACT REQUIREMENTS
A. If work demanded of the Contractor is considered by the Contractor to be outside the requirements of the contract, or if the Contractor considers any record or ruling of the Engineer or any inspector to be unfair, the Contractor shall immediately upon such work being demanded or such record or ruling being made, ask for written instructions or decision, whereupon the Contractor shall proceed without delay to perform the work or conform to the record or ruling. If the Contractor still wishes to protest, the Contractor shall, within 15 calendar days after receipt of same, file a written protest with the Engineer, stating clearly and in detail the Contractor's objections and reasons therefor. Except for such grounds or protest or objections as are made of record in the manner specified and within the time stated herein, the Contractor hereby waives all grounds for protest or objections to the records, rulings, instructions, or decisions of the Engineer, and hereby agrees that as to all matters not included in such protests, the records, instructions, and decisions of the Engineer shall be final and conclusive.

B. No later than thirty (30) calendar days following the submission of a protest in accordance with subsection A, the Contractor shall submit to the Engineer his claim concerning the matter so noticed. The claim shall set forth clearly and in detail, for each item of additional compensation or time adjustment claimed, the reasons for the claim, references to applicable provisions of the specifications, the nature and amount of cost or time involved, or both, the computations used in determining such cost or time, or both, and all other pertinent factual data. The Contractor shall furnish such clarification and further available information and data as may be requested in writing by the Engineer within the time specified in such request. In addition, the Contractor shall maintain complete and accurate daily records of the cost of any portion of the work for which additional compensation is claimed, and shall give the Engineer access thereto or certified copies thereof as requested.

C. Any decision, order, instructions, notice, or act or omission of the Engineer for which the Contractor has submitted a protest shall be final and conclusive on the Contractor if the Contractor fails to submit or document a claim with respect thereto in the manner and within the times above stated, and such failure shall constitute a waiver of all claims in connection therewith, whether direct or consequential in nature, provided that the Engineer may, if the Contractor shows good cause, and if the interests of the City will not be prejudiced, consider and decide a properly documented claim on its merits notwithstanding the Contractor's failure to submit it within the time above stated. The foregoing provision shall create no right to the Contractor, and failure or refusal of the Engineer to exercise the Engineer's authority thereunder shall not be subject to claim by the Contractor.

1.22 CONTRACTOR'S RESPONSIBILITIES FOR LOSSES OR LIABILITIES A. Risk of Loss:

Except as otherwise provided in the contract documents and except as to the cost of repair or restoration of damage to the work caused by an act of God as that term is defined in Section 7105 of the Public Contract Code of the State of California, the Contractor shall

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Supplemental General Conditions 00 7301 - 10 Foster City Street Rehabilitation Project bear all losses resulting to the Contractor on account of the amount or character of the work, or from any unforeseen obstructions or difficulties which may be encountered, or from any encumbrances on the line of the work, or because the nature of the ground in or on which the work is done is different from what is assumed, or on account of the weather, or floods, or other causes.

B. Materials and Facilities:

1. The Contractor shall be responsible for materials and facilities as hereinafter provided and in the event of the Contractor's failure to carry out said responsibilities, the same may be carried out by the City at the expense of the Contractor.
a. The Contractor shall be responsible for any material furnished the Contractor and for the care of all work until its completion and final acceptance, and the Contractor shall at the Contractor's own expense replace damaged or lost material and repair damaged parts of the work. b. The Contractor shall protect the City facilities from damage resulting from the Contractor's work. City facilities damaged by or as a result of the Contractor's work under this contract shall be repaired or replaced, as directed by the Engineer, at the Contractor's expense.
c. The Contractor shall remove from the vicinity of the completed work all buildings, rubbish, unused material, concrete forms, and other materials belonging to the Contractor or used under the Contractor's direction during construction.

1.23 CONTRACTOR USE OF PREMISES
A. Confine operations at site to areas permitted by the contract documents.

B. Do not encumber site with excessive material or equipment.

C. Do not impose any load on any structure that will damage or endanger structure.

D. Take precautions necessary to prevent annoyance to occupants adjacent to or in the vicinity of the work.

1.24 COOPERATION WITH OTHER WORK FORCES
A. Other Contractors, other utilities and public agencies or their Contractors, other City Contractors, and City personnel may be working in the vicinity during the project construction period.

B. There may be some interference between these activities and the work under this Specification. The Contractor shall cooperate and coordinate their work with that of other work forces to assure timely contract completion.

C. Coordinate all activities in and around repair locations.

D. Any costs for providing cooperation with other work forces shall be considered as included in the proposal price for the various contract items of work and no separate payment will be made therefor.

1.25 PRECONSTRUCTION CONFERENCE
A. A preconstruction conference will be held at the time and place designated by the Engineer.

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Supplemental General Conditions 00 7301 - 11 Foster City Street Rehabilitation Project B. The Contractor shall be present or be represented by an agent with authority to act for the Contractor and in responsible charge of the work to be accomplished.

1.26 MATERIAL AND WORKMANSHIP
A. Omissions from the Plans and Specifications:

Where the plans or specifications describe portions of the work in general terms, but not in complete detail, it is understood that the Contractor shall provide and install such materials as necessary for a complete and functional facility at no additional cost to the City. All work shall be done and workmanship completed consistent with the quality of work standard for the industry for commercial work, notwithstanding any omission from the specifications or the drawings. It shall be the duty of the Contractor to call attention to apparent errors and omissions and request instructions before proceeding with the work. The Engineer may, by appropriate instructions, correct errors and omissions, which instructions shall be as binding upon the Contractor as though contained in the original specifications or drawings.

B. Compliance with Jurisdictional Agency Requirements:

All work performed under this Specification may be inspected as provided in Paragraph

1.09. All work performed within city or county streets or State of California freeway rights of way shall meet the requirements of the agency having jurisdiction. All materials furnished and all work done must be satisfactory to the Engineer. Work, material, or equipment not in accordance with the contract documents shall be made to conform thereto. Unsatisfactory material and equipment will be rejected, and if so ordered by the Engineer, shall, at the Contractor's expense, be immediately removed from the vicinity of the work.

1.27 SATURDAY, SUNDAY, AND HOLIDAY WORK
Without the written consent of the Engineer, no installation or construction work shall be done on Saturdays, Sundays, or holidays. Holidays are defined as City holidays which are listed in Document 00800, Paragraph 1.04.

1.28 COOPERATION
The City reserves the right to perform other work at or near the site at any time by the use of its own forces or other contractors. The Contractor shall coordinate their work and cooperate with City forces and other contractors to the end that any delay or hindrance to their work will be avoided.

1.29 AGREEMENTS WITH ADJACENT PROPERTY OWNERS
Agreements with property owners for spoiling excavated material, storing materials, or other purpose related to the work shall be made in writing and a copy submitted to the Engineer for their information.

1.30 EMERGENCY WORK
A. During Working Hours:

In case of an emergency which threatens loss or injury of property, and/or safety of life during working hours, the Contractor shall act, without previous instructions from the City, as the situation may warrant. The Contractor shall notify the Engineer of the emergency and the action taken immediately thereafter. Any compensation claimed by the Contractor, together with substantial documents in regard to expense, shall be submitted to the

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Supplemental General Conditions 00 7301 - 12 Foster City Street Rehabilitation Project Engineer within 15 calendar days after the emergency. Compensation, if allowed, will be paid for as extra work.

B. Outside Working Hours:

Whenever in the opinion of the City there shall arise outside of the regular working hours on the contract work, an emergency involving utility services to the public or danger to public safety, the City’s forces may choose to handle such emergency work. If such emergency arises out of or is the result of operations by the Contractor, the cost of the corrective measures will be billed to the Contractor and deducted from their payment as provided in the contract documents. The performance of emergency work by City forces will not relieve the Contractor of any of his responsibilities, obligations, or liabilities under the contract.

1.31 CONFLICT AMONG DRAWINGS, SPECIFICATIONS, AND/OR STANDARDS In case of conflict among contract documents, the document of highest precedence shall prevail.

The descending order of precedence shall be:

1. Permits and Agreements with Other Agencies

2. City Codes

3. Technical Specifications

4. Contract Requirements

5. Project Drawings

6. City Standards
a. Specifications
b. Drawings

7. Referenced Specifications and Standards

8. Referenced Drawings

1.32 FIRE PROTECTION
A. The Contractor shall provide access to all fire hydrants located along the line of their work.

Such access shall meet the approval of the City Public Safety Department, and should it be necessary to close a portion of a street for a limited time, such street shall not be closed until the Contractor has the approval of said Department.

B. The City Public Safety Department shall be notified when a street is opened after it has been closed.

C. Approval shall be obtained from that Department for the use of any fire hydrant.

1.33 ORDER OF WORK
A. When required by specifications or plans, the Contractor shall follow the sequence of operations as set forth therein.

B. Full compensation for conforming to such requirements will be considered as included in the prices paid for the various contract items of work and no additional compensation will be allowed therefor.

1.34 DIFFERING SITE CONDITIONS
A. The Contractor shall promptly, and before the following conditions are disturbed, notify the City, in writing, of any:

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1. Material that the Contractor believes may be material that is hazardous waste, as defined in Section 25117 of the Health and Safety Code that is required to be removed to a Class I, Class II, or Class III disposal site in accordance with provisions of existing law.

2. Subsurface or latent physical conditions at the site differing from those indicated.

3. Unknown physical conditions at the site of any unusual nature, different materially from those ordinarily encountered and generally recognized as inherent in work of the character provided for in the contract.

B. The City shall promptly investigate the conditions, and if it finds that the conditions do materially so differ, or do involve hazardous waste, and cause a decrease or increase in the Contractor's cost of, or the time required for, performance of any part of the work, the City shall issue a change order under the procedures described in the contract.

C. In the event that a dispute arises between the City and the Contractor whether the conditions materially differ, or involve hazardous waste, or cause a decrease or increase in the Contractor's cost of, or time required for, performance of any part of the work, the Contractor shall not be excused from any scheduled completion date provided for by the contract, but shall proceed with all work to be performed under the contract. The Contractor shall retain any and all rights provided either by contract or by law which pertain to the resolution of disputes and protests between the contracting parties.

1.35 PROCEDURES FOR FILING AND RESOLVING CLAIMS
Any claim arising under this contract which the Contractor wishes to assert against the City shall be governed by California Public Contract Code Section 9204. Claims which do not exceed three hundred seventy-five thousand dollars ($375,000) are also subject to the provisions of Article 1.5 of the California Public Contract Code (commencing with Section 20104).

Pursuant to California Public Contracts Code Section 9204, claims shall be resolved as follows:
(1)(a) Upon receipt of a claim pursuant to this section, the public entity to which the claim applies shall conduct a reasonable review of the claim and, within a period not to exceed 45 days, shall provide the claimant a written statement identifying what portion of the claim is disputed and what portion is undisputed. Upon receipt of a claim, a public entity and a contractor may, by mutual agreement, extend the time period provided in this subdivision.
(b) The claimant shall furnish reasonable documentation to support the claim, pursuant to Appendix B (General Conditions), Section 2.16. (c) If the public entity needs approval from its governing body to provide the claimant a written statement identifying the disputed portion and the undisputed portion of the claim, and the governing body does not meet within the 45 days or within the mutually agreed to extension of time following receipt of a claim sent by registered mail or certified mail, return receipt requested, the public entity shall have up to three days following the next duly publicly noticed meeting of the governing body after the 45-day period, or extension, expires to provide the claimant a written statement identifying the disputed portion and the undisputed portion.
(d) Any payment due on an undisputed portion of the claim shall be processed and made within 60 days after the public entity issues its written statement. If the public entity fails to issue a written statement, paragraph (3) shall apply.

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Supplemental General Conditions 00 7301 - 14 Foster City Street Rehabilitation Project (2)(a) If the claimant disputes the public entity’s written response, or if the public entity fails to respond to a claim issued pursuant to this section within the time prescribed, the claimant may demand in writing an informal conference to meet and confer for settlement of the issues in dispute. Upon receipt of a demand in writing sent by registered mail or certified mail, return receipt requested, the public entity shall schedule a meet and confer conference within 30 days for settlement of the dispute. (b) Within 10 business days following the conclusion of the meet and confer conference, if the claim or any portion of the claim remains in dispute, the public entity shall provide the claimant a written statement identifying the portion of the claim that remains in dispute and the portion that is undisputed. Any payment due on an undisputed portion of the claim shall be processed and made within 60 days after the public entity issues its written statement. Any disputed portion of the claim, as identified by the contractor in writing, shall be submitted to nonbinding mediation, with the public entity and the claimant sharing the associated costs equally. The public entity and claimant shall mutually agree to a mediator within 10 business days after the disputed portion of the claim has been identified in writing. If the parties cannot agree upon a mediator, each party shall select a mediator and those mediators shall select a qualified neutral third party to mediate with regard to the disputed portion of the claim. Each party shall bear the fees and costs charged by its respective mediator in connection with the selection of the neutral mediator. If mediation is unsuccessful, the parts of the claim remaining in dispute shall be subject to applicable procedures outside this section.
(c) For purposes of this section, mediation includes any nonbinding process, including, but not limited to, neutral evaluation or a dispute review board, in which an independent third party or board assists the parties in dispute resolution through negotiation or by issuance of an evaluation. Any mediation utilized shall conform to the timeframes in this section.
(d) Unless otherwise agreed to by the public entity and the contractor in writing, the mediation conducted pursuant to this section shall excuse any further obligation under Section 20104.4 to mediate after litigation has been commenced. (e) This section does not preclude a public entity from requiring arbitration of disputes under private arbitration or the Public Works Contract Arbitration Program, if mediation under this section does not resolve the parties’ dispute. (3) Failure by the public entity to respond to a claim from a contractor within the time periods described in this subdivision or to otherwise meet the time requirements of this section shall result in the claim being deemed rejected in its entirety. A claim that is denied by reason of the public entity’s failure to have responded to a claim, or its failure to otherwise meet the time requirements of this section, shall not constitute an adverse finding with regard to the merits of the claim or the responsibility or qualifications of the claimant. (4) Amounts not paid in a timely manner as required by this section shall bear interest at 7 percent per annum.
(5) If a subcontractor or a lower tier subcontractor lacks legal standing to assert a claim against a public entity because privity of contract does not exist, the contractor may present to the public entity a claim on behalf of a subcontractor or lower tier subcontractor. A subcontractor may request in writing, either on his or her own behalf or on behalf of a lower tier subcontractor, that the contractor present a claim for work which was performed by the subcontractor or by a lower tier subcontractor on behalf of the subcontractor. The subcontractor requesting that the claim be presented to the public entity shall furnish reasonable documentation to support the claim. Within 45 days of receipt of this written request, the contractor shall notify the subcontractor in writing as to whether the contractor

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Supplemental General Conditions 00 7301 - 15 Foster City Street Rehabilitation Project presented the claim to the public entity and, if the original contractor did not present the claim, provide the subcontractor with a statement of the reasons for not having done so.

A waiver of the rights granted by this section is void and contrary to public policy, provided, however, that (1) upon receipt of a claim, the parties may mutually agree to waive, in writing, mediation and proceed directly to the commencement of a civil action or binding arbitration, as applicable; and (2) a public entity may prescribe reasonable change order, claim, and dispute resolution procedures and requirements in addition to the provisions of this section, so long as the contractual provisions do not conflict with or otherwise impair the timeframes and procedures set forth in this section.

Nothing in this section shall impose liability upon a public entity that makes loans or grants available through a competitive application process, for the failure of an awardee to meet its contractual obligations.

1.36 PROCEDURES FOR CIVIL ACTIONS FILED TO RESOLVE CLAIMS A. The following procedures are established for all civil actions filed to resolve claims subject to this article in accordance with the State of California, Public Contract Code, Section 20104.4.

1. Within 60 days, but no earlier than 30 days, following the filing of responsive pleadings, the court shall submit the matter to nonbinding mediation unless waived by mutual stipulation of both parties. The mediation process shall provide for the selection within 15 days by both parties of a disinterested third person as mediator, shall be commenced within 30 days of the submittal, and shall be concluded within 15 days from the commencement of the mediation unless a time requirement is extended upon a good cause showing to the court.

2. If the matter remains in dispute, the case shall be submitted to judicial arbitration pursuant to Chapter 2.5 (commencing with Section 1142.10) of Title 3 of Part 3 of the Code of Civil Procedure, notwithstanding Section 1141.11 of that code. The Civil Discovery Act of 1986 (Article 3 (commencing with Section 2016) of Chapter 3 of Title 3 of Part 4 of the Code of Civil Procedure) shall apply to any proceeding brought under this subdivision consistent with the rules and pertaining to judicial arbitration.

3. In addition to Chapter 2.5 (commencing with Section 1141.10) of Title 3 of Part 3 of the Code of Civil Procedure, (a) arbitrators shall, when possible, be experienced in construction law, and (b) any party appealing an arbitration award who does not obtain a more favorable judgment shall in addition to payment of costs and fees under that chapter, also pay the attorney's fees on appeal of the other party.

1.37 PERMITS AND LICENSES
A. The Contractor shall secure and pay for, as necessary for proper execution and completion of work:

1. All permits, including CAL/OSHA excavation permit, not specifically furnished by the City.

4. Government fees.

5. Licenses.

6. Certifications.

7. Business License from the City of Foster City.

8. Building, Plumbing, and Electrical Permits from the City of Foster City.

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C. Comply with codes, ordinances, rules, regulations, orders, and other legal requirements of public authorities which bear on performance of work.

E. Provide copies of all permits to the Engineer prior to work.

1.38 EQUAL EMPLOYMENT OPPORTUNITY POLICY
It is the policy of the City that all qualified persons shall be afforded equal opportunities of employment on any public works contract entered into with the City. To prohibit discrimination because of race, color, religion, sex or national origin, all proposers shall be prepared to demonstrate that they and their subcontractors have undertaken a continuing program to promote the full realization of equal employment opportunities.

1.39 OWNER'S RIGHT TO CORRECT DEFICIENCIES
If the Contractor should neglect to prosecute the work properly in accordance with the contract documents, the owner, after 10 consecutive calendar days following written notice to the contractor and their surety may, without prejudice to any other remedy the owner may have, and without declaring the contract in default or terminating the contract, correct such deficiencies in work intended to become a permanent part of the project, and may deduct the cost thereof from the payment then or thereafter due the Contractor or the entire cost thereof shall be paid by the Contractor or the Contractor's surety. The owner reserves the right to take over work in the event of an emergency.

1.40 NOTIFICATIONS
a. City Standard Letter
i. Along with the Contractors notification letter, the Contractor shall be responsible for printing and delivering a City Standard Letter 7 days prior to construction.

1.41 ORDER PROCEDURES
a. Work shall follow the following priority procedures. Work may be done concurrently at the approval of the City.
ii. Concrete Work
iii. Digouts
iv. Utility Adjustments as needed.
v. Grind and Overlay
vi. Crack Sealing
vii. Loop Detection
viii. Slurry
ix. Striping
x. Signage
b. Special Events and Schedule Constraints
i. E. Hillsdale Blvd. and Center Park Ln. intersection work shall begin no earlier than July 5, 2024. The site must be cleared, secured, safe, and accessible one day prior to and during Parks and Recreation’s Summer Days Event on August 16-18, 2024. c. Slurry Closures
i. Contractor shall plan on maintaining a lane of travel in each direction for all sites, unless approved by the City Engineer.
ii. Slurry shall not be started until the school district is on summer break. iii. Streets in vicinity to schools shall take priority and be completed including striping, prior to the start of school.

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1.42 OUTSIDE COORDINATION
1) Contractor shall make arrangements with all outside services to minimize disturbance. This includes, but is not limited to:
a) USPS, UPS, FedEx
b) Recology
c) SamTrans

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DOCUMENT 00 7316
SUPPLEMENTAL CONDITIONS – INSURANCE AND INDEMNIFICATION ARTICLE 1 INSURANCE

1.01At or before the date specified in Document 00 2113 (Instructions to Bidders), Contractor shall furnish to Owner satisfactory proof that Contractor has taken out for the entire period covered by the Contract the following classes of insurance in the form and with limits and deductibles specified below, unless otherwise specified in Contract Documents:

A. Comprehensive General Liability Insurance covering claims for personal injury, bodily injury and property damage arising out of the Work and in a form providing coverage not less than that of a Standard Commercial General Liability Insurance policy (Occurrence Form). Such insurance shall provide for all operations and include independent contractors, products liability, completed operations for one year after Final Completion and acceptance of the final payment for the Work, contractual liability, and coverage for explosion, collapse, and underground hazards. The limits of such insurance shall not be coverage of less than $2,000,000 each occurrence, $4,000,000 general aggregate limit, and $2,000,000 aggregate for products and completed operations. The policy shall be endorsed to provide Broad Form Property Damage Coverage.

B. Comprehensive Automobile Liability Insurance covering all owned, non-owned, and hired vehicles.

Such insurance shall provide coverage not less than the standard Comprehensive Automobile Liability policy with limits not less than$2,000,000 each person Bodily Injury, $2,000,000 each occurrence Bodily Injury, and $2,000,000 each occurrence Property Damage.

C. All-Risk Course of Construction Insurance including damage to property owned by Owner, Contractor or third parties caused by fire. Insurance shall be in the amount of 100 percent of the completed value of the Work to be performed under this Contract. Deductible shall not exceed $10,000. Each loss shall be borne by Contractor.

D. Workers’ Compensation Insurance for all persons whom the Contractor may employ in carrying out Work contemplated under Contract Documents, in accordance with the Act of Legislature of State of California, known as “Workers’ Compensation Insurance and Safety Act,” approved May 26, 1913, and all acts amendatory or supplemental thereto, in the statutory amount.

E. Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City, either the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials, employees, and volunteers, or the Contractor shall provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claim administration, and defense expenses.

1.02If Contractor normally carries insurance in an amount greater than the minimum amounts required by Owner in Paragraph 1.01 above, that greater amount shall become the minimum required amount of insurance for purposes of the Contract. Therefore, Contractor hereby acknowledges and agrees that all insurance carried by it shall be deemed liability coverage for all actions it performs in connection with the Contract.

1.03All policies of insurance shall be placed with insurers acceptable to Owner. The insurance underwriter(s) for all insurance policies except Workers’ Compensation shall have an A. M. Best Company rating of A-, VIII or better, unless otherwise specified in Contract Documents. Required minimum amounts of insurance may be increased should conditions of Work, in opinion of Owner, warrant such increase. Contractor shall increase required insurance amounts upon direction by Owner.

1.04Required Endorsements: The policies required under Document 00 7200 (General Conditions) and this Document 00 7316 (including any umbrella or excess liability policy(ies)) shall be endorsed as follows and provided prior to execution of the Contract Documents.

A. Commercial General Liability Endorsement

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Contractor shall furnish to the City the “Commercial General Liability Endorsement” as provided in this Document 00 7316. The preferred form is a CG 20 10 11 85, but the Contractor may substitute an alternative endorsement, with prior approval by the City, provided the endorsement references “your work” and contains the following minimum specific components:

1. The insurance policy number.

2. A statement that includes the following language: “The City of Foster City, including its officers, officials, employees, and volunteers, are included as insureds.”

3. A statement acknowledging the insured's insurance as primary as respects the City of Foster City and that any other insurance maintained by the City of Foster City shall be in excess of the insured's insurance and shall not be called upon to contribute with it.

4. A statement that the policy shall not be canceled except after thirty (30) days prior written notice to the City of Foster City.

5. An original, authorized signature.

6. Coverage shall be at least as broad as Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001).

An alternative to the submission of a CG 20 10 11 85 form is available. A CG 20 10 10 01 or a CG 20 33 10 01 (or similarly worded document) along with a CG 20 37 10 01 will be acceptable in lieu of a CG 20 10 11 85 form.

Note: Policies that include endorsement numbers CG 22 94 10 01 and/or CG 22 95 10 01, or have the endorsement wording written into the policy language, are not acceptable.

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B. Automobile Liability Special Endorsement
Contractor shall furnish to the City the “Automobile Liability Special Endorsement” as provided in this Document 00 7316. The Contractor may substitute an alternative endorsement with prior approval by the City, provided the endorsement contains the following minimum specific components:

1. The insurance policy number.

2. A statement that includes the following language: “The City of Foster City, including its officers, officials, employees, and volunteers, are included as insureds.”

3. A statement acknowledging the insured's insurance as primary as respects the City of Foster City and that any other insurance maintained by the City of Foster City shall be in excess of the insured's insurance, and shall not be called upon to contribute with it.

4. A statement that the policy shall not be canceled except after thirty days prior written notice to the City of Foster City.

5. An original, authorized signature.

6. Coverage shall be at least as broad as Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, Code 1 (any auto).

C. Workers' Compensation and Employer's Liability Special Endorsement Contractor shall furnish to the City the “Workers' Compensation and Employer's Liability Special Endorsement” as provided in this Document 00 7316. The Contractor may substitute an alternative endorsement with prior approval by the City, provided the endorsement contains the following minimum specific components:

1. A waiver of subrogation clause which states the following:
“This insurance company agrees to waive all rights of subrogation against the City of Foster City, its officers, officials, employees, and volunteers for losses paid under the terms of this policy which arise from the work performed by the named insured for the City.”

2. The insurance policy number.

3. A statement that the policy shall not be canceled except after thirty days prior written notice to the City of Foster City.

4. An original, authorized signature.

5. Contractor shall maintain limits for employer's liability no less than $1,000,000 per accident for bodily injury or disease.

As an alternative, the City will accept State Compensation Insurance Fund endorsement documentation in lieu of the form of endorsement provided in this Document 00 7316, provided that the documentation contains State Fund endorsement numbers 2065 and 2570.

D. Each such policy shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limit of the insurance company’s liability required hereunder.

Should any of the policies identified herein contain a “cross-suits” exclusion, such exclusion must not apply to any additional insureds.

E. Contractor or its insurance broker shall submit to Owner a copy of the “Declarations Page” for each policy identified under Paragraph 1.01 above. The Declarations Page shall include the name of the insurance carrier, the applicable policy number, the types of coverage and limits of

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insurance provided, the effective date(s) of the policy, the insurance broker’s name and license number, and a list of all coverage forms and endorsements.

F. Any available insurance proceeds broader than or in excess of the specified minimum insurance coverage requirements and/or limits shall be available to the Owner as an additional insured.

The requirements for coverage and limits shall be the greater of either the minimum coverage and limits specified in this Agreement or the broader coverage and maximum limits of coverage of any insurance policy or proceeds available to the named insured.

1.05Certificates of insurance and endorsements shall have clearly typed thereon Owner Contract Number and title of Contract Documents. Written notice of cancellation, non-renewal, or reduction in coverage of any policy shall be mailed to Owner (Attention: Owner Risk Manager / Purchasing Agent) at the address listed in Document 00 5200 (Agreement), 60 Days in advance of the effective date of the cancellation, non-renewal, or reduction in coverage. Written notice of cancellation for non-payment shall be mailed within 10 Days of cancellation. Contractor shall maintain all insurance in full force and effect during entire period of performance of Contract Documents, including warranty and guarantee periods. However, Contractor may discontinue All-Risk Course of Construction Insurance after Final Payment, and shall maintain General Liability Insurance throughout the entire Extended Term specified Paragraph 1.01 above. At time of making application for extension of time, and during all periods exceeding the Contract Time resulting from any cause, Contractor shall submit evidence that insurance policies will be in effect during requested additional period of time. Upon Owner’s request, Contractor shall submit to Owner, within 30 Days, copies of the actual insurance policies or renewals or replacements.

1.06Contractor shall pay all insurance premiums, including any charges for required waivers of subrogation or the endorsement of additional insureds. If Contractor fails to maintain insurance, Owner may take out comparable insurance, and deduct and retain amount of premium from any sums due Contractor under Contract Documents.

1.07If injury occurs to any employee of Contractor, Subcontractor or sub-subcontractor for which the employee, or the employee’s dependents in the event of employee’s death, is entitled to compensation from Owner under provisions of the Workers’ Compensation Insurance and Safety Act, as amended, or for which compensation is claimed from Owner, Owner may retain out of sums due Contractor under Contract Documents, amount sufficient to cover such compensation, as fixed by the Act, as amended, until such compensation is paid, or until it is determined that no compensation is due. If Owner is compelled to pay compensation, Owner may, in its discretion, either deduct and retain from the Contract Sum the amount so paid, or require Contractor to reimburse Owner.

1.08Nothing herein shall be construed as limiting in any way the extent to which Contractor or any Subcontractor may be held responsible for payment of damages resulting from their operations.

1.09Except for Comprehensive General Liability Insurance, of which Subcontractors need only obtain $1,000,000 in coverage, all Subcontractors shall maintain the same insurance required to be maintained by Contractor with respect to their portions of the Work unless otherwise indicated in Contract Documents, and Contractor shall cause the Subcontractors to furnish proof thereof to Owner within ten Days of Owner’s request.

1.10The following provisions apply to any licensed professional engaged by Contractor to perform portions of the Work (Professional).

A. Each Professional shall maintain the following insurance, unless otherwise specified in Contract Documents:

B. Professional Liability Insurance, insuring against professional errors and omissions arising from Professional’s Work on the Project, in an amount not less than $1,000,000 combined single limit for each occurrence. If Professional cannot provide an occurrence policy, Professional shall provide insurance covering claims made as a result of performance of Work on this Project and shall maintain such insurance in effect for not less than two years following Final Completion of the Project.

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1. Professional shall satisfy all other provisions of this Document 00 7316 relating to that insurance, including without limitation providing required insurance certificates (containing the required endorsements) before commencing its Work on the Project.

ARTICLE 2 RESPONSIBILITY OF CONTRACTOR AND INDEMNIFICATION

2.01Owner and each of its officers, employees, consultants and agents including, without limitation, the Board, Project Manager and each Owner’s Representative, shall not be liable or accountable in any manner for loss or damage that may happen to any part of the Work; loss or damage to materials or other things used or employed in performing the Work; injury, sickness, disease, or death of any person; or damage to property resulting from any cause whatsoever except their sole negligence, willful misconduct or active negligence, attributable to performance or character of the Work, and Contractor releases all of the foregoing persons and entities from any and all such claims.

2.02To the furthest extent permitted by law (including, without limitation, Civil Code Section 2782), Contractor shall defend, indemnify, and hold harmless, Owner and each of its officers, officials, employees, consultants and agents including, without limitation, the governing board, Project Manager and each Owner’s Representative, from claims, suits, actions, losses and liability of every kind, nature and description including, without limitation, claims and fines of regulatory agencies and attorney’s fees and consultant’s fees, directly or indirectly arising out of, connected with, or resulting from performance of the Work, failure to perform the Work, or condition of the Work that is caused in whole or part by any act or omission of Contractor, Subcontractors, anyone directly or indirectly employed by any of them, or anyone for whose acts any of them may be liable, resulting from any cause whatsoever except for liability for loss, damage, or expense arising from Owner’s sole negligence, willful misconduct, or active negligence.

2.03With respect to third-party claims against Contractor, Contractor waives any and all rights to any type of express or implied indemnity including, without limitation, costs of defense, against Owner and each of its officers, officials, employees, consultants and agents including, without limitation, Owner, the governing board, Project Manager and each Owner’s Representative. Owner shall provide timely notice to Contractor of any third-party claim relating to the Contract Documents, in accordance with Public Contract Code Section 9201.

2.04Approval or purchase of any insurance contracts or policies shall in no way relieve from liability nor limit the liability of Contractor, its Subcontractors of any tier, or the officers or agents of any of them.

2.05To the furthest extent permitted by law (including, without limitation, Civil Code §2782), the indemnities, releases of liability and limitations of liability, claims procedures, and limitations of remedy expressed throughout Contract Documents shall apply even in the event of breach of Contract, passive negligence, fault or strict liability of the party(ies) indemnified, released, or limited in liability, and shall survive the termination, rescission, breach, abandonment, or completion of the Work or the terms of the Contract Documents. If Contractor fails to perform any of these defense or indemnity obligations, Owner may in its discretion back charge Contractor for Owner’s costs and damages resulting therefrom and withhold such sums from progress payments or other Contract moneys which may become due.

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Supplemental Conditions – Insurance 00 7316 - 6 Foster City Street Rehabilitation Project and Indemnification
(CONTRACT AGREEMENT PACKAGE)
(Attach completed Contractor's Commercial General Liability “Certificate of Insurance” to this page)

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Supplemental Conditions – Insurance 00 7316 - 7 Foster City Street Rehabilitation Project and Indemnification
(CONTRACT AGREEMENT PACKAGE)
(Attach completed Contractor's “Commercial General Liability Endorsement” to this page.)

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Supplemental Conditions – Insurance 00 7316 - 8 Foster City Street Rehabilitation Project and Indemnification
(CONTRACT AGREEMENT PACKAGE)
(Attach completed Contractor's “Automobile Liability Special Endorsement” to this page.) REV. 2/08

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Supplemental Conditions – Insurance 00 7316 - 9 Foster City Street Rehabilitation Project and Indemnification
(CONTRACT AGREEMENT PACKAGE)
(Attach completed Contractor's “Workers' Compensation and Employer's Liability Special Endorsement” to this page.)

END OF DOCUMENT

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COVID Requirements 00 07320 - 1 Foster City Street Rehabilitation Project DOCUMENT 00 7320

COVID REQUIREMENTS
ARTICLE 1 DEFINITIONS

1.01The following definitions apply to this Document 00 7320:

A. The 2019 novel coronavirus (including all variants) and the disease it causes are collectively referred to herein as COVID-19.

B. A COVID-19 Condition is something attributable to COVID-19 not caused by Contractor (which for purposes herein includes all subcontractors and suppliers) and beyond its reasonable control, including without limitation COVID-19 Proclamations and supply chain disruptions due to COVID- 19, and other circumstances concerning COVID-19 not caused by Contractor and which are beyond its reasonable control.

C. A COVID-19 Proclamation includes without limitation orders, directives and guidance concerning COVID-19 that have been issued, and which may be issued from time to time, by public agencies or regulatory bodies, including without limitation the CDC, OSHA, Cal/OSHA, County or Owner, including without limitation the CalOSHA COVID-19 Prevention Emergency Temporary Standards.

Contractor acknowledges that those orders, directives and guidance may require the Project to shut down or otherwise increase Contractor’s cost or time of performance by calling for things such as social distancing and the use of personal protective equipment. In the event of conflicting COVID-19 Proclamations, Contractor shall follow the most applicable, restrictive and newest COVID-19 Proclamations.

D. An Unknown COVID-19 Condition is a COVID-19 Condition Contractor did not know about, and reasonably should not have known about, as of the date Contractor submitted its Bid. The requirements contained in COVID-19 Proclamations issued before submission of a Bid are not Unknown COVID-19 Conditions, and Contractor will be deemed to have knowledge of those requirements.

E. An Unknown COVID-19 Cost is a cost that: (i) is solely attributable to an Unknown COVID-19 Condition; (ii) is reasonable under the circumstances; (iii) is not the result of Contractor’s failure to comply with the contract documents or a COVID-19 Proclamation; and (iv) is not the result of a subcontractors’ or suppliers’ failure to comply with a COVID-19 Proclamation while on the Project Site or in connection with performance of the Work.

ARTICLE 2 COVID-19 CONDITIONS AND BID.

2.01Contractor is expected to know and is deemed to have known about COVID-19 Conditions when it submits its Bid, and COVID-19 Conditions must be accounted for in Contractor’s price and schedule. In order to be entitled to any relief from a COVID-19 Condition, Contractor must demonstrate that the issue, cost or delay is due to an Unknown COVID-19 Condition ARTICLE 3 COMPLIANCE WITH COVID-19 PROCLAMATIONS.

3.01Contractor shall comply with COVID-19 Proclamations in performance of the Work, irrespective of when the COVID-19 Proclamations are issued, and as they pertain to performance of the Work.

The cost of such compliance is non-compensable, except as otherwise expressly stated in this Document 00 7320.

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COVID Requirements 00 07320 - 2 Foster City Street Rehabilitation Project

3.02Contractor is responsible to ensure that its subcontractors and suppliers comply with COVID-19 Proclamations while they are on the Project Site and in connection with the performance of their portion of the Work.

ARTICLE 4 DELAY.

4.01Contractor is entitled to a reasonable time extension for an Unknown COVID-19 Condition. Such time extension is non-compensable.

ARTICLE 5 OWNER DIRECTED SUSPENSION.

5.01Owner may suspend work at the Project site due to COVID-19 health concerns, even though Contractor may be allowed to proceed with Work based on COVID-19 Proclamations. Owner may suspend the work for its convenience. Contractor is entitled to a time extension for an Owner Directed Suspension, and the contract amount will be equitably adjusted if and to the extent Contractor incurs increased costs that are Unknown COVID-19 Costs.

ARTICLE 6 COMPENSATION FOR COVID-19 COSTS.

6.01Owner will reimburse Contractor for costs attributable to COVID-19, and which are not included in the Schedule of Values, only if the cost is an Unknown COVID-19 Cost ARTICLE 7 SAFE WORK PRACTICES.

7.01Contractor shall implement safe work practices recommended by CDC or OSHA or Cal/OSHA, which may include, inter alia, screening all employees, subcontractors, laborers or suppliers (worker(s)) on the construction site in advance of their arrival on the job site for signs and symptoms of COVID-19; adopting staggered work schedules, e.g., providing alternating workdays or extra shifts, to reduce the total number of employees on a job site at any given time and to ensure physical distancing; identifying choke points where workers are forced to stand together, such as hallways, hoists and elevators, ingress and egress points, break areas, and buses, and implement policies to maintain social distancing; coordinating site deliveries in line with the employer's minimal contact and cleaning protocols; and instituting a rigorous housekeeping program to reduce dust levels on the job site. Contractor remains fully responsible for following and complying with changes to recommended safe work practices from time to time.

ARTICLE 8 MONITORING AND REPORTING.

8.01Owner may require Contractor to actively monitor the health of its workers through temperature checks and questionnaires of major COVID-19 symptoms, including but not limited to cough, fever above 100.4 degrees Fahrenheit and shortness of breath. Contractor shall immediately report to Owner any outbreaks of COVID-19 among its workers. Contractor shall not knowingly allow any worker who has tested positive with COVID-19 to enter an Owner building. In the event of an outbreak or an exposure to COVID-19, Owner may impose appropriate mitigation strategies which may be in consultation with the public health officer.

ARTICLE 9 PRECEDENCE.

9.01This Document 00 7320 shall take precedence over any other conflicting Contract Document.

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In-Use Off-Road
Diesel-Fueled Fleets Regulation 00 07324 - 1 Foster City Street Rehabilitation Project DOCUMENT 00 7324

IN-USE OFF-ROAD DIESEL-FUELED FLEETS REGULATION
Attention is directed to provisions of the California Code of Regulations Sections 2449, 2449.1, and 2449.2, Title 13, relating to In-Use Off-Road Diesel-Fueled Fleets (Regulation), issued by the California Air Resources Board (CARB). Contractor warrants that it shall be knowledgeable of and comply with the Regulation, including without limitation the matters contained in this Document 00 7304, at all times prior to and during its work on the Project. The Regulation shall control in the event of any conflict between this Document 00 7304 and the Regulation.

1.Contracting Requirements.
a.If the Project involves the use of vehicles subject to the Regulation, Contractor must obtain copies of the valid Certificates of Reported Compliance, as described in Regulation section 2449(n), for the fleet selected for the Contract and its listed subcontractors, if applicable, prior to entering into a new or renewed contract with that fleet. b.Contractor shall not enter into a contract with a fleet for which it does not have a valid Certificate of Reported Compliance for the fleet and Contractor’s listed Subcontractors, if applicable, prior to entering into a new or renewed contract with that fleet. c.The Certificates of Reported Compliance received by the Contractor for the Project must be retained for three years after the Project’s completion. Upon request by CARB, these records must be provided to CARB within five business days of the request. d.If the Project is considered to be an emergency operation, as defined in Regulation section 2449(c)(18), it is exempt from the requirements in Regulation section 2449(i)(1)-(3). Nevertheless, Contractor must still retain records verifying vehicles subject to the Regulation that are operating on the emergency operations project are actually being operated on the project for emergency operations only. These records must include a description of the emergency, the address or a description of the specific location of the emergency, the dates on which the emergency operations were performed, and an attestation by the fleet that the vehicles are operated on the project for emergency operations only.

2.Other Contractor Requirements.
a.Between March 1 and June 1 of each year, Contractor must collect new valid Certificates of Reported Compliance for the current compliance year, as defined in Regulation section 2449(n), from all fleets that have an ongoing contract with the Contractor as of March 1 of that year. Contractor must not write contracts to evade this requirement. b.Contractor shall only allow fleets with valid Certificates of Reported Compliance on Contractor’s job sites.
c.If Contractor discovers that any fleet intending to operate vehicles subject to the Regulation for Contractor does not have a valid Certificate of Reported Compliance, as defined in Regulation section 2449(n), or if Contractor observes any noncompliant vehicles

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In-Use Off-Road
Diesel-Fueled Fleets Regulation 00 07324 - 2 Foster City Street Rehabilitation Project subject to the Regulation on Contractor’s job site, then Contractor must report the required information to CARB when as provided and within the time period contained in in the Regulation d.Upon request by CARB, Contractor must immediately disclose to CARB the name and contact information of each responsible party for all vehicles subject to the Regulation operating at the job site or for Contractor. e.If applicable, Contractor shall prominently display signage for any project where vehicles subject to the Regulation as provided and within the time period contained in in the Regulation.

END OF DOCUMENT

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Apprenticeship Program and Skilled 00 7380 - 1 Foster City Street Rehabilitation Project and Trained Workforce Requirements
DOCUMENT 00 7380

APPRENTICESHIP PROGRAM AND SKILLED AND TRAINED WORKFORCE REQUIREMENTS ARTICLE 1 COMPLIANCE REQUIRED

1.01Contractor and Subcontractors shall comply with the requirements of Labor Code Sections 1776, 1777.5, and 1777.6 concerning the employment of apprentices by Contractor or Subcontractors.

Willful failure to comply may result in penalties, including loss of the right to Bid on or receive public works contracts.

ARTICLE 2 CERTIFICATION OF APPROVAL

2.01Labor Code Section 1777.5, as amended, requires a Contractor or Subcontractor employing tradespersons in any apprenticeable occupation to apply to the joint apprenticeship committee nearest the site of a public works project and which administers the apprenticeship program in that trade for a certification of approval. The certificate shall also fix the ratio of apprentices to journeypersons that will be used in performance of the Contract. The ratio of work performed by apprentices to journeypersons in such cases shall not be less than one hour of apprentices work for every five hours of labor performed by journeypersons (the minimum ratio for the land surveyor classification shall not be less than one apprentice for each five journeypersons), except:

A. When unemployment for the previous three month period in the area exceeds an average of 15 percent;
B. When the number of apprentices in training in the area exceeds a ratio of one to five; C. When a trade can show that it is replacing at least 1/30 of its membership through apprenticeship training on an annual basis state-wide or locally; or
D. Assignment of an apprentice to any work performed under a public works contract would create a condition which would jeopardize his or her life or the life, safety, or property of fellow employees or the public at large or if the specific task to which the apprentice is to be assigned is of such a nature that training cannot be provided by a journeyperson.

ARTICLE 3 FUND CONTRIBUTIONS

3.01Contractor is required to make contributions to funds established for administration of apprenticeship programs if Contractor employs registered apprentices or journeypersons in any apprenticeable trade on such contracts and if other contractors on the public works site are making such contributions.

ARTICLE 4 APPRENTICESHIP STANDARDS

4.01Information relative to apprenticeship standards, wage schedules, and other requirements may be obtained from the Director of the California Department of Industrial Relations, or from the Division of Apprenticeship Standards and its branch offices.

ARTICLE 5 APPRENTICESHIP STANDARDS

5.01Information relative to apprenticeship standards, wage schedules, and other requirements may be obtained from the Director of the California Department of Industrial Relations, or from the Division of Apprenticeship Standards and its branch offices.

ARTICLE 6 SKILLED AND TRAINED WORKFORCE REQUIREMENTS

6.01Contractor, if and to the extent otherwise required by law, shall meet the requirements of Public Contract Code § 2601(d) subject to certain exceptions set forth therein, that the required percentage of the skilled journeypersons or skilled journeyperson hours employed to perform work

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Apprenticeship Program and Skilled 00 7380 - 2 Foster City Street Rehabilitation Project and Trained Workforce Requirements
on the Project by the Contractor and all subcontractors are graduates of an apprenticeship program for the applicable apprenticeable occupation.
“Skilled Journeyperson” means a worker who either:

A. Graduated from an apprenticeship program for the applicable occupation that was approved by the Chief or apprenticeship program located outside California and approved for federal purposes, pursuant to the apprenticeship regulations adopted by the Federal Secretary of Labor.

B. Has at least as many hours of on-the-job experience in the applicable occupation as would be required to graduate from an apprenticeship program that is approved by the Chief.

A graduate of an apprenticeship program means either of the following:

C. An individual that has been issued a certificate of completion under the authority of the California Apprenticeship Council for completing an apprenticeship program approved by the Chief pursuant to Section 3075 pf the Labor Code; or
D. An individual that has completed an apprenticeship program located outside California and approved for federal purposes pursuant to the apprenticeship regulations adopted by the federal Secretary of Labor.

Pursuant to Public Contract Code section 2602 and if and to the extent otherwise required by law, Contractor shall certify that it, and all its contractors and subcontractors at every tier will comply with the Skilled and Trained Workforce Requirements of Public Contract Code Chapter 2.9 (Sections 2600 through 2603). Prime Contractor also understands and acknowledges that it shall provide the Owner a monthly report, in the form in Attachment A below or a substantially similar form, demonstrating compliance with the Skilled and Trained Workforce Requirements listed in Public Contract Code Chapter 2.9 (Sections 2600 through 2603). If Contractor fails to provide the monthly report, or a report that is incomplete, Owner will withhold future payments until a complete report is provided. The definitions, obligations, rights and remedies set forth in Public Contract Code Section 2600-2603 are hereby incorporated by reference and made a part of this agreement.

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Apprenticeship Program and Skilled 00 7380 - 3 Foster City Street Rehabilitation Project and Trained Workforce Requirements
Attachment A
Skilled and Trained Workforce Monthly Compliance Report DIRECTIONS: This form is required to be submitted by the Contractor for all contractors regardless of tier by the 20th of the following month for work performed corresponding to this reporting period. Items with a red asterisk (*) indicate a required field.

Project Title:
*Project Number:
*Prime Contractor:
*Subcontractor:
*Contact Name:
*Contact Number:

Month Year
Exceptions:*
*Work Month & Year:
*Report: Please fill out the following report of all apprenticeable occupations utilized in this reporting period.

SKILLED JOURNEYPERSON (SJ) REPORT
Number of Skilled
Journeypersons (SJ)
employed by the
contractor to perform
work on the project
Number of hours
worked by SJ employed
by the contractor to
perform work on the
project
*Apprenticeab
le Occupation
*Required
minimum
SJ:

Apprentic
e
Graduate
% (see 2nd
page
attachmen
t)
*SJ:

Apprentic
e
Graduate
*SJ: On-
The-Job
Experien
ce
SJ ratio
between
the
number
of SJ:

Apprentic
e
Graduate
s to SJ:

On-The-
Job
Experien
ce
Workers
*SJ:

Apprentic
e
Graduate
*SJ: On-
The- Job
Experien
ce
SJ ratio
of hours
worked
by SJ:

Apprentic
e
Graduate
s
compare
d with SJ:

On-The-
Job
Experien
ce
Workers
**EXAMPLE**
Laborer
40% 7 3 70% 30 70 30%
Terms Definitions
Apprentice Defined in Labor Code 3077
Skilled Journeyperson: Apprentice Graduate Defined in Public Contracts Code 2601 (e) (1) Skilled Journeyperson: On-The-Job-Experience Defined in Public Contracts Code 2601 (e) (2)

END OF DOCUMENT

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Addenda 9113-1 Foster City Street Rehabilitation Project

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5.4 Attachment 3 - G. Bortolotto & Company, Inc. Bid Submittal

309

41,800
RED INDICATES CALCULATION ERROR.

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310

$68,899
max 5%
$1,320,879.80

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333

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334

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339

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340

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341

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342

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343

5.4 Attachment 3 - G. Bortolotto & Company, Inc. Bid Submittal

344

TASK ORDER NO. CSG-2024-01

TO MASTER CIVIL ENGINEERING SERVICES AGREEMENT FOR

PROFESSIONAL ON-CALL CIVIL ENGINEERING SERVICES

This Task Order No. CSG-2024-01("Task Order") is made and entered into by and between the City of Foster City/Estero Municipal Improvement District (“City/District”) and CSG Consultants, Inc. ("Consultant").

RECITAL
A. City and Consultant entered into an agreement entitled Master Civil Engineering Services Agreement ("Agreement"), by which the Consultant agreed to perform professional Civil Engineering services and related services in accordance with Task Orders issued by the City.

NOW, THEREFORE, THE PARTIES HEREBY AGREE AS FOLLOWS:

1. INCORPORATION BY REFERENCE. This Task Order hereby incorporates by reference all items and conditions set forth in the Agreement.

2. SCOPE OF TASK ORDER. Consultant shall perform the services described in Exhibit "A," attached hereto and incorporated herein by reference, in accordance with the terms and conditions of the Agreement.

3. PAYMENT. For services performed by Consultant in accordance with this Task Order, City will compensate Consultant in accordance with the terms and conditions of the Agreement, in an amount not to exceed $198,940 (including all hourly billings as well as reimbursable costs.

4. SIGNATURES. The individuals executing this Task Order represent and warrant that they have the right, power, legal capacity, and authority to enter into and to execute this Task Order on behalf of the respective legal entities of the Consultant and the City.

IN WITNESS WHEREOF, the City and Consultant do hereby agree to the full performance of the terms set forth herein.

City of Foster City Consultant

_____________________________ _________________________ By: Patrick Sullivan By: Cyrus Kianpour
Title: Mayor Title: President
Date: _________________________ Date: _____________________

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345

EXHIBIT A

SERVICES TO BE PROVIDED, PAYMENTS, PROJECTS, AND SCHEDULE,

PROFESSIONAL ON-CALL CIVIL ENGINEERING SERVICES
TASK ORDER NO. CSG-2024-01

This is an Exhibit attached to and made a part of and incorporated by reference to the Agreement dated July 18, 2022, by and between CSG Consultants, hereinafter referred to as "CONSULTANT" and the City of Foster City/Estero Municipal Improvement District, hereinafter referred to as " CITY/DISTRICT" providing for professional services.

DESCRIPTION OF PROJECT

See attached proposal.

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346

550 Pilgrim Drive
Foster City, CA 94404
Phone: 650.522.2500
Fax: 650.522.2599
www.csgengr.com

FOSTER CITY | PLEASANTON | SAN JOSE | SACRAMENTO | NEWMAN | FRESNO | PASO ROBLES | ORANGE April 29, 2024
Justin Lai, P.E., Senior Civil Engineer | Public Works
City of Foster City
610 Foster City Boulevard
Foster City, CA 94404
Re: Construction Management Services for CIP 716 – Street Rehabilitation and Park Pathway Restoration Project
CSG Consultants, Inc. (CSG) is pleased to present this proposal to the City of Foster (City) to provide construction management and material testing services. We have a thorough understanding that the City requires a consultant to oversee construction management and material testing for the CIP 716 – Street Rehabilitation and Park Pathway Restoration project. Enclosed is CSG’s detailed plan outlining our approach to construction management services, our proposed personnel, subconsultant details, fee schedule, and resumes.

APPROACH TO CONSTRUCTION MANAGEMENT SERVICES
CSG has provided construction management and inspection services on many projects for clients throughout California. Our approach to managing construction management type contracts promotes flexibility, efficiency and provides the right expertise to match the project’s specific needs. Our office location and staff being in close proximity to the City enables us to serve the City in the most efficient manner. We have managed projects from the advertise bid award phase through project close out.

Provided below is a breakdown of CSG’s typical construction management approach. We have provided a full CM team as well as individual staffing to act as an extension of City staff.

PRE - CONSTRUCTION PHASE
Should the City of Foster City need these additional services, CSG stands ready to provide them as they have proven to be valuable towards saving costs during construction.

Constructability Reviews—Constructability reviews will allow CSG and the City to determine the biddability and the buildability of the project. CSG will provide the City with a review of all contract documents and permits. CSG will identify conflicts, or any changes required in the contract language to meet the intent of the contract. The goal will be to construct the project safely, on schedule and within budget. Some of the elements CSG will look at include:
 Site logistics and constraints
 Environmental impacts of proposed
construction methods
 Clarity of contract documents
 Technical Constructability
 Compatibility of contract plans, specifications
and applicable standards
 Subsurface soil data
 Scheduling requirements
 Construction phasing if necessary
 Erosion and sedimentation control
 Maintenance and protection of traffic
 Local event conflicts
 Utility clearances for constructability and
project schedule
 Access to properties and businesses by
pedestrians during construction
 Long lead-time items

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347

Constructability reviews help establish project duration, milestone dates, and other applicable construction parameters which help in developing a clear and reliable project CPM schedule. CSG will value engineer the project to assure it will be constructed as economically and efficiently as possible.

Public Notification—Keeping the public informed of the project’s progress is critical to the project’s success. Our approach would be to strategize with the City during the pre-construction phase on developing the most effective means of communicating project-specific progress, schedule updates, and traffic impacts and/or detours. CSG’s main goal is to maximize clarity and coverage throughout the life of the project, as well as educate the public on the processes of public works construction projects. CSG has been successful in utilizing various forms and combinations of distribution, such as hotlines, written notifications, newsletters, sign postings, and project websites. CSG understands that the public relations effort is dynamic, will require diligent coordination with the City, and will be adjusted based on the project’s needs.

CONSTRUCTION PHASE
After the award of a project and prior to start of construction, CSG will lead or participate in the following steps.

Pre-Construction Conference—Our staff will lead the efforts of holding a pre-construction meeting.

They will prepare the agenda, coordinate the meeting with all stakeholders and prepare meeting minutes for distribution. Upon award of the project contract, all appropriate personnel will be invited to the pre-construction meeting, including the selected contractor, City project manager, utility companies and, at the City’s discretion, any other involved entities. Some of the subjects to be covered will include but are not limited to contract milestones, contract submittal requirements, lump sum items using a schedule of values, change order and potential claims procedures, the contractor’s construction schedule, technical issues, safety procedures, along with labor compliance issues and certified payroll requirements.

Utility Company Coordination—Utility work can greatly impact the progress of a construction project.

To minimize the impact, it will be critical to work with the City to establish a working relationship with the utilities for the life of the project, identify all utility work and anticipate potential conflicts as soon as possible, incorporate the utility companies into the project team meetings, clarify protocols and construction crews’ availabilities, and strategize contingencies for unforeseen circumstances.

During the Construction Phase, CSG will be responsible and will enforce requirements typically requested by jurisdictions.
 Providing detailed documentation using the
City-preferred form of documentation
 Daily inspector’s report
 Tracking of any subcontractor’s work
 Any safety issues regarding contractor
 Maintaining project files
 Date and time stamping of all documents
 Maintaining Submittal Logs
 Maintaining Submittal Distribution Lists
 RFI log (submittal, review, and return)
 Correspondence logs and tracking
 Tracking status of contract change orders
 Tracking status of RFI's
 Tracking potential claims
 Tracking weekly statements of working
days
 Tracking Buy America and other contract
requirements
 Documenting contractor’s detours, lane
closures and staging plans
 Documenting contractors’ labor
compliance performance
 Approve “Schedule of Values” submitted
by contractor
 Provide monthly reports documenting
construction progress, etc.
 Provide expenditure report
 Tracking progress pay estimates and
overall project budget

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348

Monitor Contractor’s Performance—Throughout the project, the inspectors will enforce all requirements of applicable codes, specifications, and contract drawings. There will be daily communication and coordination with the contractor. This will limit miscommunication, resolve issues on the field level to anticipate project progress, address deficiencies, and minimize delays.

Construction Schedule Monitoring—Our staff will conduct weekly project meetings to review the project’s status, update the project schedule, discuss any outstanding items, resolve disagreements and work collaboratively towards the successful completion of each phase of the project. The contractor’s construction schedule will be used during these meetings as a tool to track the progress of construction relative to the allowable working days and approved budget. All changes that impact on the baseline schedule will be closely monitored and discussed at the weekly meetings. Schedule updates are critical for accurately monitoring the Contractor’s progress and evaluating potential claims and CCO’s that might arise.

Weekly Statement of Working Days—CSG’s Resident Engineer, Assistant Resident Engineer/Office Engineer, and Inspectors will monitor and document working days weekly per the Caltrans Local Assistance Procedures Manual (LAPM). This includes contract times and documenting time extensions.

Daily Inspector Report—CSG uses an
effective and detailed report system that
tracks contractor personnel and
equipment, work progress and field
changes while coordinating with the
contractor daily to reduce confusion. This
system has proved to be a useful and
important component in the reduction of
future issues. Our Inspector’s report will
be accompanied by daily photos.

Maintaining Photos and Videos—Photos
will be taken continuously during
construction. All signage and lane closure
setups will be documented, and photos
taken to illustrate prior striping and, in case of accidents, to provide documentation of the change associated with the ongoing work. A similar procedure undertaken at the beginning of construction will also be done at project closeout. Photos will be taken of the completed project and will be part of the final package to be submitted to the City with all project documents.

Managing Change Orders—Inspectors will bring any unforeseen changes to the attention of the City Resident Engineer or Project Manager. Some of our Inspectors are well versed in drafting change orders and can take on this task if needed by the City. Upon the issuance of a change order, the work will be monitored and tracked, including labor, equipment, and materials. On a force account change order, our inspectors employ a technique of requiring the Contractor’s foreman to agree to and sign the work order to eliminate disputes at the time of payment.

Our primary approach to managing change orders will be to utilize bid item increases, if applicable.

Otherwise, an agreed upon lump sum and force account will be applied as a last resort if an agreement cannot be established or time is of the essence. In the case of an urgent change, authorization to proceed with a not-to-exceed amount will be provided. All changes will promptly be brought to the attention of the City’s Project Manager prior to authorization of any additional expenditure.

Managing Claims—CSG’s knowledgeable staff will utilize its understanding of the design process, contract language, scheduling, construction techniques and costs to provide the City with critical information it needs to manage construction claims. CSG will provide the City with an assessment of the outstanding issues. David Bishop, PE will take the lead in managing claims should any arise. Our staff will assist in developing a strategy to resolve claims and disputes.

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Requests for Information (RFI’s)/ Design Clarifications—Our staff will receive and process all RFI’s from the contractor. They will conduct meetings if required to define, clarify, and resolve all RFI’s expeditiously. They will prepare responses to RFI’s to the extent possible. All of their direct responses will be in writing and will be answered within 24 hours. If an RFI requires the input of the designer, they will immediately provide a copy (via e-mail or fax) of the RFI to the designer and will follow-up with a phone call to discuss the nature of the request. The City’s Project Manager will be kept informed of all design related RFI’s. Records of all RFI’s and responses from the contractor will be properly filed and will be available at all times.

Progress Payments—Our staff will be responsible for reviewing and recommending progress payments to contractors. Progress payment records will be maintained, and measurement and payment will be made in accordance with the contract documents and the City’s procedures for progress payments.

Inspector records will be used to corroborate contractor requests. Our staff will meet with the contractor representative to compare item quantities at the end of each shift or when the contractor is performing item quantity measurements. This procedure eliminates most, if not all, conflicts at the time of progress payment submittal and processing.

Our team will also submit a monthly budget status review document to the City’s Project Manager that provides an overview of project’s financial status, a projection for anticipated future costs, and an update of the overall budget status versus the contractor’s construction progress. CSG’s inspectors will measure and track quantities on a daily basis, in conjunction with preparation of the daily field report. These quantities will be measured and compared with the measurements taken by the contractor’s superintendent so that potential conflicts can be resolved prior to the submission of a progress payment. At the end of the agreed upon pay period, the Contractor’s progress payments will be reviewed for accuracy.

Labor Compliance—Inspectors will verify the contractor’s compliance with labor laws, including performing spot check labor surveys and interviews and verifying certified payrolls to make sure the contractor is paying prevailing wages to its employees. They will report their findings to the City’s labor compliance officer in a manner and frequency that is acceptable to the labor compliance office.

Non-Compliant Work—Inspectors will use the mini memo out on the project to inform the Contractor of non-compliance of the Project Plans or Specifications. In addition, they will include the non- compliance in the inspector’s daily diary. Our inspectors will immediately report non-compliant work, so that an official letter is prepared to communicate to the contractor and City Project Manager. All reporting of non-compliance work will be accomplished within 48 hours after the occurrence to facilitate the Contractor’s timely correction of the deficiencies.

Final Inspection Punch List—With every project, the inspector generates a document listing work that does not conform to contract specifications. The inspector will work with the contractor to ensure proper completion of all projects prior to final payment. A walkthrough with all stakeholders will be conducted, and a punch list will be developed for the contractor to complete. No project is fully completed until all punch list work is addressed and finalized.

Record File—Inspectors will ensure that the contract administration, documentation and filing system are prepared and maintained in accordance with CSG’s Construction Management Filing System. Our construction managers have used this program successfully on several large construction projects to monitor, coordinate, review and respond to, for example, submittals, RFI’s, potential changes, and change orders. The construction management filing system allows the project manager to track all areas of coordination to ensure complete and timely accomplishment of critical or time-sensitive items. This system can be tailored to each job and access can be provided to key members of the project team including City staff, the designer, and the contractor. The system enables the team to remain updated on the latest status of submittals, RFI’s, and action item ownership.

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Review Traffic Control/Detour Plans—A CSG resident engineer or assistant resident engineer will review traffic control plans and offer comments to the City. They will see to it that the contractor is complying with MUTCD and the City’s standards and ordinances. Lane closure can only be allowed in the time window in which it was specified in the project plans or City municipal codes.

Environmental Compliance—CSG staff will review all documents associated with project including EIR’s or Negative Declaration documents to ensure contractor’s full compliance before/during and possibly after construction. We will work closely with any environmental consultant the City hires to monitor any specified Species.

POST - CONSTRUCTION PHASE
A project is only truly completed when all construction is complete, including the punch list items; the final payment is approved and accepted; the project paperwork is completed and archived; and as-builts are complete. Tasks performed under this phase include:
 Completion of all project documentation
change order summary, final detailed
estimate, project acceptance documentation,
and a claims management/resolution
 Final walkthrough involving the contractor,
the City, engineering and maintenance staff,
the designer and other relevant stake holders
 Completion of all items on the final
construction punch list
 Preparation of final payment estimate
and resolving all of the contractor’s
exceptions to proposed final estimate
 Preparing a final construction project
report per Chapter 17 of the LAPM
 Preparation of final “As-Built” records
including record drawings and all
discovered utility locations and changes

CSG PERSONNEL
CSG commits to providing a full-time Construction Inspector with the support of a backup Inspector, and a part-time Resident Engineer.

Nourdin Khayata, PE, will serve as the Principal-in-Charge on this project. Mr. Khayata has over 32 years of experience in project management, civil & municipal engineering, and construction management. He managed projects from inception through close out including administrating federally funded projects. Mr.

Khayata worked for Caltrans before joining the private sector. His background experience includes earthwork, asphalt concrete pavement, PCC pavement, traffic signalization, concrete barriers, soundwalls, drainage, box culverts, erosion control, and traffic control. Mr. Khayata is proficient in interpretation of contract documents, writing, and negotiating contract change orders, reviewing and approving contract’s submittals, and supervision of field inspectors. Mr. Khayata manages the construction management division for CSG Consultants.

David Bishop, PE, will serve as the Resident Engineer on this project. Mr. Bishop has over 25 years of experience in construction management, municipal engineering, and project management. He has extensive experience necessary to successfully design, manage, and achieve compliance with contract plans and specifications. Most recently he has managed several projects in the Cities of Burlingame, San Mateo, Pacifica and the Town of Colma. Prior to this time, Mr. Bishop worked in the Town of Hillsborough as the Assistant City Engineer. He has played a key role in identifying, scoping, planning, budgeting, and managing numerous capital improvements for Sewer, Water, Storm Drain, Street, and Public Facility projects over the past 20 years.

Bassam Badr will serve as the Construction Inspector on this project. Mr. Badr has over 31 years of construction management and municipal and civil engineering experience. Prior to joining CSG, he spent 28 years serving the California Department of Transportation. He has served as a and Assistant Resident Engineer and a Resident Engineer for various maintenance and rehabilitation projects for the highway

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transportation system within the Counties of San Francisco and San Mateo. His project experience includes underground utilities; drainage systems; pavement rehabilitation; and street, interchange and highway improvements.

Peiman Moghadam will serve as the Backup Construction Inspector on this project. Mr. Moghadam has over 20 years of industry experience and his experience encompasses a wide variety of public works construction efforts including roadway construction and rehabilitation, pavement, access roads for industrial complexes, construction of highways between major cities, traffic improvements, overpass bridges, sanitary sewers, storm drains, and utilities. He is familiar with contract coordination, material procurement, quantities, and various applicable standards for public works construction.

SUBCONSULTANT
CSG will be working with Inspection Services, Inc. (ISI) to provide material testing for this project. Since 1995, ISI has provided the highest level of expertise, accuracy and integrity in special inspection and materials testing services. ISI is a certified SBE/MWBE/DBE company that consistently ranks as one of the largest woman-owned businesses in the San Francisco Bay Area. Staffed with over 50 employees, ISI has the resources to deliver high quality and responsive service to our clients. ISI has maintained a reputation for professional excellence throughout its history in the construction special inspection and materials testing industry. ISI has a staff which includes California Licensed Civil and Geotechnical Engineers; HCAI, DSA, ACI, ICC, AWS, and NICET-certified inspectors and technicians, supervisors, and support staff. The ISI team has a significant amount of valuable, prior experience with providing similar services with clients such as the cities of Oakland, Berkeley, San Francisco and Port of Oakland, to name a few. ISI has maintained a reputation for professional excellence throughout its history in the construction special inspection and materials testing industry. ISI is well versed in the Standard Specifications for Public Works Construction (SSPWC), Caltrans, California Building Code (CBC/Title 24), and the International Building Code (IBC). Their materials testing laboratory is inspected and maintains accreditations with American Association of State Highway Transportation Officials (AMRL/AASHTO), Cement and Concrete Reference Laboratory (CCRL), and Caltrans.

FEE
Provided below is CSG’s proposed hourly rate for this project. The cost estimate does not include overtime or weekend work. Project duration is 110 calendar days, equivalent to 74 working days. CSG will budget a full-time inspection of 8 hours per day for the Construction Inspector and 2 hours per day for the Resident Engineer/Construction Manager. Additionally, 8 hours will be allotted for preconstruction and 20 hours for project closeout.

Employee / Service Hourly
Rate
Hours
Per Day
Working
Days Precon. Const. Closeout Total
Hours Cost
Nourdin Khayata, PE
Principal-in-Charge
David Bishop, PE
Resident Engineer $240.00 2 74 8 148 20 176 $42,240.00
Bassam Badr
Inspector $175.00 8 74 4 592 20 616 $107,800.00
Peiman Moghadam
Inspector (backup) $175.00 8 20 148 $25,900.00
Material Testing
(includes markup)
(ISI)

$23,000.00
SUBTOTAL $198,940.00
Rates reflect and include administrative costs and routine expenses such as local mileage, copying, fax, telephone,

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mail, in-house printing, software, and computer usage.

We look forward to continuing our working relationship with the City. If you have any questions, please contact me at (650) 522-2524 or by email at [email protected].

Sincerely,

Nourdin Khayata, PE
Vice President, Construction Management

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Nourdin

LICENSES &

CERTIFICATIONS
Professional Civil Engineer
State of California | C52446
Trench Excavation Safety
Confined Space Training
Cal OSHA 40-Hour HAZMAT
Storm Water Pollution
Prevention Training

EDUCATION
Master of Science, Civil
Engineering
Tennessee State University
| Nashville, TN
Bachelor of Science, Civil
Engineering
University of Texas
| Austin, TX

PROFESSIONAL

AFFILIATIONS
American Public Works
Association (APWA)
Silicon Valley Chapter
American Society of Civil
Engineers (ASCE)
Earthquake Engineering
Research Institute
Toastmasters International
Club: 04840677

Khayata PE
Principal -in -Charge
Mr. Khayata has over 32 years of experience in project management, civil & municipal engineering, and construction management. He managed projects from inception through close out including administrating federally funded projects. Mr. Khayata worked for Caltrans before joining the private sector. His background experience includes earthwork, asphalt concrete pavement, PCC pavement, traffic signalization, concrete barriers, soundwalls, drainage, box culverts, erosion control, and traffic control. Mr. Khayata is proficient in interpretation of contract documents, writing, and negotiating contract change orders, reviewing and approving contract’s submittals, and supervision of field inspectors. Mr. Khayata manages the construction management division for CSG Consultants.

Mr. Khayata’s municipal experience includes serving as the City Engineer for the City of Marina for the last 8 years. He is responsible for the overall coordination and direction of the public works processes and the day-to-day management of the municipal engineering division. His duties include managing and implementing the capital improvement program (CIP), managing design and construction projects and overseeing development projects. Mr. Khayata exemplifies strong leadership and management skills. He is strategic, politically astute and has a good understanding of the big picture and vision outlined by the City Council. He is interpersonal and possesses good communication, presentation and writing skills. Mr. Khayata has earned the respect and trust of City staff, City manager, Council and the businesses & residents by delivering projects that meet the needs of the broader community.

RELEVANT EXPERIENCE
Various CIP Projects | City of Cupertino, CA
Mr. Khayata served as the resident engineer for several projects including the McClellan Phase I and II bike lane widening projects, Byrne Ave widening, Stevens Creek / Wolf Signal modification, Regnart Creek slope protection, Regnart Creek Trail and Bulb Road widening project. Mr. Khayata reviewed and processed contractor RFI’s and submittals, reviewed and monitored contractor’s schedule, evaluated and processed change orders and administered the contract through project close out. 2020 Edgewater Resurfacing Project | City of Foster City, CA Mr. Khayata was the resident engineer on the resurfacing of this major arterial in the City of Foster City. Traffic control, public notification and coordination were extremely critical towards the success of this project. Detailed Contract administration system based on LAPM was utilized to administer this federally funded project.

Green Valley Road Improvement Project | City of Watsonville, CA Mr. Khayata served as the construction inspector for this roadway improvement project. The project included the reconstruction of roadway, through full depth rehabilitation, while also installing bicycle lanes, median island, removing and replacing non-compliant driveways and curb ramps, striping, and replacing asphalt along pedestrian paths with concrete curbs, gutters, and sidewalks. He also coordinated with property and business owners to ensure project schedule and potential impacts were communicated. He also coordinated with PG&E and AT&T for the relocation of their facilities.

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David

LICENSES &

CERTIFICATIONS
Professional Civil Engineer
State of California | C71287
Caltrans Resident Engineers
Academy
ICBO Certified Special Inspector
Reinforced Concrete
NASSCO PACP Certified
CPR Certification
New Concepts for Improving
Public Works Construction
Inspection Skills

EDUCATION
Bachelor of Science, Civil
Engineering
San Jose State University
| San Jose, CA

PROFESSIONAL

AFFILIATIONS
Water and Environment
Federation (WEF)
California Water Environment
Association (CWEA)
American Public Works
Association (APWA)

Bishop PE
Resident Engineer
Mr. Bishop has over 25 years of experience in construction management, municipal engineering, and project management. He has extensive experience necessary to successfully design, manage, and achieve compliance with contract plans and specifications.

During the last 10 years Mr. Bishop has been managing a variety of projects in San Mateo County. Most recently he has managed several projects in the Cities of Burlingame, San Mateo, Pacifica and the Town of Colma. Prior to this time, Mr. Bishop worked in the Town of Hillsborough as the Assistant City Engineer. He has played a key role in identifying, scoping, planning, budgeting, and managing numerous capital improvements for Sewer, Water, Storm Drain, Street, and Public Facility projects over the past twenty years. His CIP management experience has allowed for successful completion of over 50 projects totaling more than 30 million dollars while in Hillsborough. His experience with capital improvements has allowed him to assist Public Works divisions to identify and remedy several emergency projects and regulatory compliance efforts including sewer overflows, water main breaks, and storm drain flooding. While in Hillsborough, Mr. Bishop played a primary role in sewer collection system compliance efforts, by managing the development of a 20 - year sewer master plan and developing a 5 – Year CIP program totaling over $41 million dollars. Mr. Bishop has experience utilizing many replacement and rehabilitation techniques to maximize I & I reduction including open trench, pipe bursting, slip lining, pipe reaming, and CIPP lining.

RELEVANT EXPERIENCE
Mission Road Bicycle and Pedestrian Improvements Project | Town of Colma, CA Mr. Bishop served as the Resident Engineer for this federally funded project that was locally administered by Caltrans Local Assistance. The improvements included upgrades to the existing sidewalks and driveways to provide ADA accessible walkways and ramps. Rectangular Rapid Flashing Beacons and bulb outs were installed to allow for high visibility and shortened distance at all pedestrian crossings. Three bioretention basins and one flow through planter were installed throughout the project. Mr. Bishop also handled the project outreach and directly coordinated with all affected businesses.
2019-2020 Street Rehabilitation Project | City of Pacifica, CA Mr. Bishop served as the construction manager for this pavement rehabilitation project. The scope included replacement of curb, gutter, sidewalk, ADA ramps, retaining walls, paving, striping and signage along Monterey Rd. The work also included a new bulb out adjacent to Ocean Shore school where new RRFB flashing beacons were installed.

Taylor Safe Routes to School and Green Infrastructure Project | City of Millbrae, CA Mr. Bishop served as the construction manager for this Safe Routes to School and Green Infrastructure Project. The project included the first three bioretention basin installations in the City. Along with the new green infrastructure bioretention basins, project improvements also included paving, new pedestrian crossings curb extensions, upgraded sidewalks, ADA curb ramps, storm drain infrastructure, planting, irrigation, signs, streetlights, and conduit.

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Bassam

EDUCATION
M.S., Civil Engineering,
University of Pittsburgh
| Pittsburgh, PA
Bachelor of Science, Civil
Engineering,
Beirut Arab University
| Beirut, Lebanon

Badr
Construction Inspector
Mr. Badr has over 31 years of construction management and municipal and civil engineering experience. Prior to joining CSG, he spent 28 years serving the California Department of Transportation. He has served as a and Assistant Resident Engineer and a Resident Engineer for various maintenance and rehabilitation projects for the highway transportation system within the Counties of San Francisco and San Mateo.

His project experience includes underground utilities; drainage systems; pavement rehabilitation; and street, interchange and highway improvements.

RELEVANT EXPERIENCE
2023 Resurfacing Project | City of Foster City, CA
Mr. Badr served as the resident engineer on the $2 million annual pavement rehabilitation project. The scope of work included concrete ramps, dig-outs, crack and slurry seal, AC paving, parks pathway restoration signing and striping. He also oversaw traffic control and coordination with businesses and residents which was critical to this project.
2022 Resurfacing Project | City of Redwood, CA
Mr. Badr served as the resident engineer on the $7 million pavement rehabilitation project covering multiple regions of the City. Work entailed extensive amounts of pavement repair locations (dig-outs), concrete ramps, curbs and gutters, driveways and sidewalks, grinding, traffic loop detector installation, and overlay with asphalt concrete paving, and signing and striping. He also oversaw public notification, traffic control, and schedule adherence which were critical towards the success of this project.

Annual Street Overlay / Rehabilitation Project| City of San Leandro, CA Mr. Badr served as the construction inspector for the City’s annual pavement rehabilitation project. The work involved mill & fill, full depth reclamation, installation of curb ramps, gutters, sidewalks, two drainage systems, sanitary sewer point repair, and traffic loop detectors.

Permit Engineer / Permit Inspection| City of Union City, CA Mr. Badr performed review of encroachment permits, capital improvement inspections, NPDES inspections, and provided daily inspection reports to the City.

During the five-month period, he performed inspection of pavement rehabilitation, sidewalk/curb ramp improvements, and residential development projects. 2017 Pavement Rehabilitation Project| City of Santa Clara, CA Mr. Badr performed inspection for this $4.8 million project, which included FDR, RHMA, conventional HMA, deep lift repairs, overlaying a bridge with polyester concrete, striping and signing.
2017 Pavement Resurfacing Project| Town of Hillsborough, CA Mr. Badr performed inspection for the pavement maintenance and rehabilitation of roughly 30 miles of residential and arterial streets throughout the hillsides of Hillsborough.

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Peiman

EDUCATION
Bachelor of Science,
Civil Engineering
Guilan University
| Guilan, Iran

Moghadam
Construction Inspector (Backup)
Mr. Moghadam is a construction inspector for CSG and brings over 20 years of construction industry experience to his work. His experience encompasses a wide variety of public works construction efforts including roadway construction and rehabilitation, pavement, access roads for industrial complexes, construction of highways between major cities, traffic improvements, overpass bridges, sanitary sewers, storm drains, and utilities. He is familiar with contract coordination, material procurement, quantities, and various applicable standards for public works construction.

Prior to joining CSG, Mr. Moghadam worked as a Superintendent and Site Manager for Almo Construction in Redwood City and served in the capacities of Project Manager and Field Engineer for several of Iran’s top construction companies .

RELEVANT CSG EXPERIENCE
Mr. Moghadam serves as a CSG construction inspector performing inspection of developments throughout the San Francisco Bay Area. Mr. Moghadam has inspected project types including pavement rehabilitation, grading and earthwork, sewer and water lines, storm drains, sidewalks, and developments. The following are examples of recent projects he has inspected.

McClellan Road Separated Bikeway Project-Phase 1A | City of Cupertino, CA Mr. Moghadam served as the inspector on this multi-phase project to install separated/Class IV bike lanes on McClellan Road between Torre Avenue and Imperial Avenue. The work included shifting the northern sidewalk north to make room for the improvements. Mr. Moghadam duties included inspection of the sidewalk reconstruction, curb & gutter, ADA curb ramps, physical 18-inch-wide bike curb to separate the bike lane, valley gutter, guard rail, AC pavement and striping.

McClellan Road Bikeway Improvements-Phase 1B | City of Cupertino, CA Mr. Moghadam served as the construction inspector for the improvements at McClellan Road & Bubb Road and McClellan Road & Stelling Road. The Phase 1B project included signalizing the intersections improved during the Phase 1A project.

Mr. Moghadam inspected traffic signals & signage, streetlights, underground utilities, landscaping, AC pavement and roadway striping. He was further responsible for documenting the work with daily field reports and photos, collecting contractor’s extra work tags, recording quantities, and reviewing CCO’s and progress payments.

North 40 Development | Town of Los Gatos, CA
Work included development management and inspection of storm drain lines, sanitary sewer lines, retaining wall, site management (erosion control), offsite streets modifications, intersections and traffic signals modifications, street lights modifications, new fiber optic line, new streets AC pavement, offsite streets new center median construction, Lark Ave & Los Gatos Blvd AC pavement, onsite & offsite new sidewalk, curb & gutter construction, onsite & offsite joint trench work, and traffic control management inspection.

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6 9
5 DATE: July 15, 2024

TO: Mayor and Members of the City Council
VIA: Stefan Chatwin, City Manager
Marlene Subhashini, Assistant City Manager

FROM: Andrew Brozyna, Public Works Director
Justin Lai, Senior Civil Engineer
DEPARTMENT: Public Works
SUBJECT: STREET REHABILITATION PROJECT FY21/22 AND PARK PATHWAY RESTORATION PROJECT FY21/22 (CIP 301-
703/301-702) - NOTICE OF COMPLETION

RECOMMENDATION
It is recommended that the City Council adopt the attached resolution accepting the work performed by VSS International, Inc. (VSS) for the construction of the Street Rehabilitation Project FY21/22 and Park Pathway Restoration Project FY21/22 (CIP 301-703/301-702) and directing the City Clerk to file the Notice of Completion.

EXECUTIVE SUMMARY
CIP 301-703/301-702 consisted of street rehabilitation and pavement maintenance on various streets in Neighborhoods No. 1 and No. 9, along with park pathway repaving.

Work included the installation of new curb ramps in conformance with the Americans with Disabilities Act (ADA), signage, striping, and utility adjustments. The work has been completed in conformance with the contract documents by VSS.

The project has been completed within budget and unused funds will be returned to the appropriate originating fund balances. It is recommended that the City Council accept the work and direct the City Clerk to file the Notice of Completion (NOC).

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6 9
5 BACKGROUND
At its meeting on February 21, 2023, the City Council adopted Resolution No. 2023-19 approving the plans and specifications for CIP 301-703 and CIP 301-702 and authorized the call for bids.

City Resolution No. 2023-30 adopted on April 3, 2023, approved the execution of a construction contract with VSS International, Inc. in the amount of $ 1,604,000 for CIP 301-703/301-702 and established a project contingency of $161,000. Along with the construction contract, CSG Consultants (CSG) was awarded a contract for $112,000 with a contingency amount of $17,000. CSG assisted with inspection services, submittal review, material testing, and construction support throughout the project.

Construction began in June 2023 and was substantially completed in October 2023.

Day-to-day construction management and inspection services were performed by in- house staff and CSG. The contractor has completed all punch list items of work.

ANALYSIS
The scope of work consisted of street rehabilitation (grind and overlay) and pavement maintenance (slurry) on various streets in Neighborhoods No. 1 and No. 9. Work included the installation of new curb ramps in conformance with ADA, signage, striping, and utility adjustments if necessary. Along with the street rehabilitation work, park pathway restoration was performed at the following parks:
•Constitution Drive Pathways
•Arcturus Park
•Turnstone Park
•Erckenbrack Park
•Shad Park
During the project one (1) contract change order was issued, totaling $137,937.19.

Contract Change Order #1 (CCO#1) addressed additional pavement repairs that were caused by root damage and the age of the roadways. A number of bid item quantities also increased to address faded pavement markings, striping and signage that were discovered during the construction phase. On May 17, 2024, VSS performed corrective work to address tire tracks along Comet Drive and Balclutha Drive. Vehicles drove on the new slurry before it was fully cured, and the contractor was responsible for repairing this at no additional cost to the City. This repair was the last item on the punch list resulting in a completed project.

Given that VSS has completed its work in conformance with the contract documents, it is recommended that the City Council accept the work and direct the City Clerk to file the NOC.

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6 9
5 CALIFORNIA ENVIRONMENTAL QUALITY ACT
Categorically Exempt pursuant to CEQA Guidelines Section 15061(b)(3) and 15301(c) – Existing Facilities

FISCAL IMPACT
The following is the project expenditure summary:

Project Budget
CIP 301-703/301-702 $3,500,000.00

Construction Contract Expenses
Contract Agreement with VSS International, Inc. $ 1,604,000.00 CCO #1 – Extra Work & Quantities Adjustment Change Order $ 137,937.19 Total Construction Contract $ 1,741,937.19
Total Construction Contract Expensed (includes quantity corrections) $ 1,715,876.23
Other Project Related Expenses
Consultant/Designer – CSG Consultants
Advertisement/Miscellaneous Expenses (includes City
Furnished Poles)
$ 122,200.00
$ 9,770.17
Total Other Project Related Expenses $ 131,970.17
Total Project Expenses to date $ 1,847,846.40
Project Budget Balance $ 1,652,153.60
The contract work has been completed and the NOC can now be filed. Tonight’s action will establish the official date of completion of the work performed by VSS, formalizing the City’s acceptance of the contract work and allowing final payment to the contractor to be made. The project budget balance (unused funds) will be returned to the respective originating funds. Below are the original funding sources:
•$2,310,000 – Fund #102 – Measure “A”
•$290,000 – Fund #103 – Gas Tax

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6 9
5 •$100,000 – Fund #105 – Measure “M”
•$500,000 – Fund #136 – Measure “W”
The unused funds will help fund future projects including this year’s pavement rehabilitation project.

CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Facilities and Infrastructure
ATTACHMENTS:

Attachment 1 – Resolution
Attachment 2 – Notice of Completion

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RESOLUTION NO. __________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FOSTER CITY ACCEPTING THE WORK PERFORMED BY VSS INTERNATIONAL, INC. FOR THE CONSTRUCTION OF STREET REHABILITATION PROJECT FY21/22 AND PARK PATHWAY RESTORATION PROEJCT FY21/22(CIP 301-703/301-702) AND DIRECTING THE CITY CLERK TO FILE THE NOTICE OF COMPLETION; (CEQA STATUS: EXEMPT FROM CEQA UNDER SECTION 15061(b)(3) AND 15301(c) –

EXISTING FACILITIES)

CITY OF FOSTER CITY
WHEREAS, the Public Works Director/City Engineer has filed with the City Clerk the Notice of Completion for the work known as the Street Rehabilitation Project FY21/22 and Park Pathway Restoration Project FY21/22 (CIP 301-703/301-702) located in the City of Foster City, situated in San Mateo County, California; provided to be done under and pursuant to the contract documents and agreement between the City of Foster City and VSS International, Inc. dated April 3, 2023; and WHEREAS, it appears to the satisfaction of the City Council that said work has been completed in an acceptable manner.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Foster City does hereby authorize:

1. The acceptance of said work subject to reservation of all City's rights arising from any defective workmanship and/or materials not observed during construction being hereafter discovered and becoming known to City; and

2. The City Clerk to notarize and file for record with the County Recorder of the County of San Mateo the Notice of Completion thereof, as required by law, and file a conformed, recorded copy of said notice with the Finance Director and Public Works Director/City Engineer; and

3. The City Clerk to notify VSS International, Inc. that the Construction Performance Bond No. 30187955 from Western Surety Company may be released one year following the recordation of the Notice of Completion; and

4. The City Clerk to release the Labor and Material Bond No. 30187955 from Western Surety Company, thirty-five (35) days after the date of recording of the Notice of Completion if no claims or Stop Notices have been received.

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PASSED AND ADOPTED as a resolution of the City Council of the City of Foster City at the regular meeting held on the 15th day of July 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
______________________________________

PATRICK SULLIVAN, MAYOR
ATTEST:
_____________________________

PRISCILLA SCHAUS, CITY CLERK

5.5 Attachment 1 - Resolution

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NOTICE OF COMPLETION
STREET REHABILITATION PROJECT FY21/22 AND PARK PATHWAY RESTORATION PROJECT FY21/22 (CIP 301-703/301-702)

CITY OF FOSTER CITY
NOTICE IS HEREBY GIVEN that VSS International, Inc. entered into a contract dated the 3rd day of April 2023 for the construction of certain improvements in the City of Foster City, situated in San Mateo County, California. Said construction is known as the Street Rehabilitation Project FY21/22 and Park Pathway Restoration Project FY21/22 (CIP 301-703/301-702) and consists of street rehabilitation, striping, signage, park pathway rehabilitation and concrete civil work.

That said work is located in the City of Foster City, situated in San Mateo County, California, and was completed on the "l 7th day of May 2024.

That acceptance of said work was ordered by resolution of the City of Foster City adopted on the I 5fh da'l of July 2024.

That the name and bond number of the surety of the contractor's bond for Labor and Materials on said project is Western Surety Company and Labor and Material Bond No. 30187955.

That said work and improvements consisted of the furnishing of all labor, materials, tools, equipment, services, and incidentals required to undertake and complete the Street Rehabilitation Project FY21/22 and Park Pathway Restoration Project FY21/22 (CIP 301-703/301-702), all in accordance with the contract documents as required by the City of Foster City and more particularly described in the agreement approved by the City Council of the City of Foster City pursuant to City Resolution No. 2023-30 adopted on the 3rd of April 2023, subject to reservation of all City rights arising from the contract documents and further, any defective workmanship and/or materials not observed during construction being thereafter discovered and known to the City.

DATED:

Andrew 5ro a[
Public Works Director
City of Foster City

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DATE: July 15, 2024

TO: Mayor and Members of the City Council
VIA: Stefan Chatwin, City Manager
Marlene Subhashini, Assistant City Manager

FROM: Andrew Brozyna, Public Works Director
Kurt Zander, Building and Vehicle Maintenance Manager
DEPARTMENT: Public Works
SUBJECT: ISSUANCE OF A REQUEST FOR PROPOSALS FOR CITYWIDE JANITORIAL SERVICES FOR A TERM OF OCTOBER 1, 2024,
THROUGH SEPTEMBER 30, 2026, AND FINDING THAT THIS
ACTION IS NOT A PROJECT UNDER SECTION 15378 OF THE

CEQA GUIDELINES

RECOMMENDATION
It is recommended that the City Council adopt the attached resolution authorizing the issuance of a Request for Proposals for Citywide Janitorial Services for a 2-year contract from October 1, 2024, through September 30, 2026, with the option for 36 months of extensions through September 30, 2029.

EXECUTIVE SUMMARY
Since 1995, the City has contracted for commercial janitorial services at City facilities.

The scope of work for janitorial services is included in the attached Request for Proposals (RFP).

City facilities are heavily used for a variety of activities, and it is imperative that the janitorial vendor provides the standard of care and service levels that the City and community expect. For this reason, it is critical to actively seek highly competitive proposals through a widely advertised RFP. The Scope of Work attached with the RFP contains detailed and specific information about service needs.

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BACKGROUND
The Building Maintenance Division of the Public Works Department maintains all of the City’s buildings and facilities. The City has contracted for janitorial service of these buildings and facilities since 1995, which allows Building Maintenance Division staff to prioritize scheduled maintenance and projects, such as management of major structural improvements, deep carpet and window cleanings, daily work order requests, sustainability conversions, and safety audits, while continuing to maintain a very high standard of routine building care.

The scope of work for janitorial services is included in the attached RFP. Janitorial services for the following City facilities are included:
•Corporation Yard (Administration Facility, Training Room, Data Room, Lunch Room, and Locker Rooms)
•City Hall
•Council Chambers
•Fire Administration (Emergency Operations Center)
•Police Station
•Library/Community Center
•Teen Center
•Current and Temporary Recreation Center Facilities (to be determined prior to contract execution.)

ANALYSIS
The very heavy City-wide facility usage, as well as the broad array of types of use, require a high standard of care to achieve and maintain the service levels the City expects from janitorial service. For this reason, the attached RFP includes a very specific and detailed Scope of Work. The Building Maintenance Division, Recreation Division, and City Attorney have all reviewed the attached RFP to ensure that the needs of the operation are addressed.

The current agreement will expire on September 30, 2024, and this successor agreement will be effective October 1, 2024. Since the Recreation Center is due to be closed after the Summer Days festival concludes on August 18, the scope of work included in the RFP includes alternatives for services for the temporary recreation facilities and the current Recreation Center, with the final contract to be written based on the Recreation Center Rebuild schedule. The agreement term has been limited to two years with 36 months of extensions which can be exercised in increments of 2-12 months to provide maximum flexibility to enter into a new janitorial agreement that incorporates the new Recreation Center project once it opens.

The RFP was developed to address not only routine maintenance, but also to require the

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vendor to respond to emergency maintenance matters and provide service for select large special events.

The RFP includes a mandatory pre-proposal walk-through for interested vendors, which will ensure all proposers have maximum information about the City’s expectations and maximize the number of satisfactory proposals.

Tentative Timeline:

July 16, 2024: Issue Request for Proposal
August 6, 2024: Proposals Due
September 3, 2024: City Council Awards Contract
October 1, 2024: Selected Vendor begins to Provide Service CEQA
This action is not a project under Section 15378 of the CEQA Guidelines, as the issuance of an RFP has no potential for a direct or indirect physical change in the environment.

Therefore, no CEQA review is required.

FISCAL IMPACT
The FY 2023-2024 cost for City-wide janitorial services is $26,615.50 per month. It is anticipated that the RFP will create a competitive bidding environment with competitive pricing. The cost to issue the RFP is the staff and City Attorney time associated with preparing the RFP, responding to questions, and providing prospective vendor walk- throughs. The actual cost of service will be based upon the City Staff’s recommendation to City Council of the most qualified proposer.

CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Facilities and Infrastructure
ATTACHMENTS:

Attachment 1 - Resolution
Attachment 2 - Request for Proposals for Citywide Janitorial Services through September 30, 2026, with an option for 36 months of extensions

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2 3
1 8
RESOLUTION NO. __________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FOSTER CITY

AUTHORIZING THE ISSUANCE OF A REQUEST FOR PROPOSALS FOR CITYWIDE JANITORIAL SERVICES FOR A TERM OF OCTOBER 1, 2024, THROUGH SEPTEMBER 30, 2026 WITH OPTIONAL EXTENSIONS THROUGH SEPTEMBER 30, 2029

CITY OF FOSTER CITY
WHEREAS, the City has contracted for janitorial services since 1995; and WHEREAS, the current janitorial agreement expires on September 30, 2024; and WHEREAS, City facilities are heavily used for a variety of activities, making it critical to find a vendor that can provide the standard of care and service levels the City requires from janitorial service; and
WHEREAS, the issuance of a Request for Proposals (RFP), will solicit contractors for Citywide janitorial services from October 1, 2024 through September 30, 2026, with the option to extend the term for up to 36 months through September 30, 2029, and find that this action is not a project under Section 15378 of the CEQA Guidelines, as the issuance of an RFP has no potential for a direct or indirect physical change in the environment.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Foster City does hereby authorize the issuance of a Request For Proposals for Citywide Janitorial Services for October 1, 2024 through September 30, 2026 with optional extensions through September 30, 2029.

PASSED AND ADOPTED as a resolution of the City Council of the City of Foster City at the regular meeting held on the 15th day of July, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

PATRICK SULLIVAN, MAYOR
ATTEST:

PRISCILLA SCHAUS, CITY CLERK

5.6 Attachment 1 - Resolution

368

Building Maintenance Division
100 Lincoln Centre Drive
Foster City, CA 94404

July 16, 2024

SUBJECT: Request for Proposal – Janitorial Services of City Buildings

Dear Contractor,

You are invited to submit a proposal to provide janitorial services to the City of Foster City as outlined and delineated on the enclosed Request for Proposals and Scope of Services. Proposals are due to the office of the Building Services Division at the Foster City Corporation Yard, 100 Lincoln Centre Drive, Foster City, CA 94404, before 4:00 P.M., Monday, August 6, 2024.

PROJECT REQUIREMENTS

The work includes furnishing all labor, equipment, and cleaning agents/chemicals required to complete the work at various sites throughout the City. The proposal must include the required services at all facilities listed below and detailed in the Request for Proposal and Scope of Services.

• Library/Community Center (1000 E. Hillsdale Boulevard) • Corporation Yard Administration Building, Training Center, Locker Rooms, Lunch Room (100 Lincoln Centre Dr.)
• Current and Temporary Recreation Center Facilities (to be determined prior to contract execution.) -

SEE NOTE BELOW
• The VIBE Teen Center (670 Shell Blvd.)
• Police Station (1030 East Hillsdale Blvd.)
• Council Chambers (620 Foster City Blvd.)
• City Hall (610 Foster City Blvd.)
• Emergency Operations Center (First Floor only at 1040 East Hillsdale Boulevard)

Note: The current Recreation Center is anticipated to be demolished in Fall 2024. During construction, temporary “ portables” will be used. Proposals must contain pricing for both the Temporary and Permanent facilities, but only one of these facilities will be serviced at any given time, depending upon the construction schedule.

In addition to routine service, t he City is requesting pricing and proposals for emergency, on-call service and additional janitorial services associated with special events, as needed. The City requests a flat, not- to-exceed fee for routine service. Emergency services and additional calls for service may be proposed at an hourly rate or at a per-job rate. Proposals must clearly define the fee for routine service, the hourly or per-job fee for non-routine work and the Contractor’s expected payment schedule.

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369

CONTRACT

The initial contract period shall be from October 1, 2024, to September 30, 2026. The contract includes 36 months of contract term extensions by mutual agreement. These extensions may be exercised in increments from two (2) to twelve (12) months.

The successful proposer will be required to enter into and abide by the terms of the City’s Agreement for Janitorial Services which is included in the Request for Proposal as an attachment, including all insurance requirements. Proposals are expected to include these requirements.

PROPOSALS

Each proposer must submit five (5) copies of the proposal, incorporating all requirements set forth in this Request for Proposal. Proposals shall include the following information:

(1) Cover Letter (up to 1-page) containing at a minimum:
a. Company name
b. Contact name, address, phone number, fax number, and email address c. Acknowledgement of receipt of any and all addenda (list number and date of issuance)

(2) General Information (up to 1 page) containing at a minimum:
a. Description of firm/team
b. Legal company organization; organization chart with names c. List of applicable licenses

(3) Team Experience & Qualifications
a. Applicant’s overall reputation, service capabilities and quality as it relates to this project. b. Brief description of each team member’s role.
c. A list of other cities and towns in Northern California for which contracts have been completed or are currently in force, during the past five (5) years. d. Proposed sub-consultants and/or subcontractors and the method of sub consultants/subcontractor selection, if applicable.
e. Current workload and ability to proceed promptly.
f. Willingness to abide by the City’s standard form Agreement for Janitorial Services. g. Statement that this engagement will not result in a conflict of interest.

(4) Relevant factors impacting the quality or value of work.

(5) Include the completed BID PROPOSAL FORM in a separate sealed envelope.

Proposals will be evaluated based on the information outlined in this Request for Proposal. Proposal price alone will not be the sole determining factor in the selection of the contractor for this work. The City will evaluate each of the proposers ’ qualifications and references and may conduct interviews with the proposers to provide an opportunity for proposers to demonstrate their qualifications for the proposed services. From these processes, the City will select a contractor and negotiate a final fee for the services delineated in the Scope of Services. The contractor must be ready to execute an Agreement for Janitorial Services within ten (10) days of award of the contract, complete all required background activities and be

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370

prepared to start work under the contract no later than October 1, 2024 . The proposal submitted in response to this Request for Proposals will be included as part of the Agreement with the selected contractor.

REQUESTS FOR ADDITIONAL INFORMATION
The City reserves the right to seek clarification or additional information from any vendor throughout the solicitation process. The City may require a Vendor’s representative to answer questions during the evaluation process with regard to the Vendor’s proposal. Failure of a Vendor to demonstrate that the claims made in its proposal are accurate may be sufficient cause for deeming a proposal non-responsive.

MANDATORY PRE-BID CONFERENCE MEETING
All proposers are required to schedule a mandatory walk-through of the eight (8) City locations with Building Maintenance staff prior to submitting a proposal. Walk-throughs can be scheduled by contacting Administrative Assistant Jill Salvato at 650 -286-3554 or [email protected]. Allow four (4) hours for this meeting.

Sincerely,

Kurt Zander
Building Maintenance Manager

Enclosures:
(1) Request for Proposal
(2) Scope of Services
(3) Template Agreement for Janitorial Services (draft)
(4) City of Foster City Bid Proposal Form

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371

COUNTY OF SAN MATEO, CALIFORNIA

PARKS AND RECREATION DEPARTMENT

BUILDING MAINTENANCE DIVISION

Request for Proposals:

CITYWIDE JANITORIAL SERVICES

Bids Due:

August 6, 2024 before 4pm
610 Foster City Boulevard, Foster City

NOTICE
Mandatory Pre-Bid Walk-Through
Must be Scheduled Prior to Submitting Proposal

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372

CITY OF FOSTER CITY

REQUEST FOR PROPOSAL

JANITORIAL MAINTENANCE OF CITY BUILDINGS

1. DUTY OF CONTRACTOR:

The work covered by these specifications involves janitorial cleaning services for buildings owned by the City of Foster City (CITY) . The selected proposer (CONTRACTOR) will have the primary responsibility for all cleaning activities, which is more fully detailed in the Service Schedule herein. The Service Schedule provides a general outline of major tasks included in the work and shall not be construed to be a complete listing of all cleaning tasks required to perform the required work to the CITY’s standards.

2. HOURS OF SERVICE:
a. Regular janitorial work is generally to be performed during “non- working hours” (between 5:00 PM and 8:00 AM) unless more specifically described herein. b. CONTRACTOR shall provide emergency response service twenty-four (24) hours per day. The response time for arrival on site to perform emergency work ordered by CITY shall be no more than three (3) hours from the CITY’s call.

Emergency work will be completed as soon as reasonably possible, given the availability of materials necessary to remediate the emergency condition.

3. SERVICE SCHEDULE:

CONTRACTOR shall provide regular service according to the following schedule:

a. LOCATION AND SERVICE SCHEDULE

Location Facility Operating
Hours
Service Schedule Notes
Library/Community
Center
1000 E. Hillsdale Blvd
Library
Mon-Th 10am-9pm
Fri 10am-6pm
Sat 10am-5pm
Sun 1-5pm

Community Center
Mon-Fri 8am-10pm
Sat 1pm-Midnight
Sunday Closed*
7 days a week
10pm-8am

7 days a week
10pm-8am
Two-story building
consisting of restrooms,
offices, meeting rooms,
large multi-purpose room,
and patio.

The facility hosts
community programming,
events, meetings and
classes.

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Location Facility Operating
Hours
Service Schedule Notes
Corporation Yard
Administration Building,
Training Center, Locker
Rooms, Bathrooms,
Parks Key Room,
Lunch Room, Vehicle
Maintenance
Office/Bathroom
100 Lincoln Centre
Drive
Monday through
Friday,
7am-6pm; Saturday
and Sunday, Closed.
5 days a week
Mon-Fri
7pm-7am
Two-story building that
houses administrative
offices of the Parks,
Building Maintenance,
Public Works, and Vehicles
Department. Single story
buildings with Vehicle
Maintenance, Locker
Rooms. Bathrooms, Parks
Key Room.

The VIBE Teen Center
670 Shell Boulevard
Mon- Th 8am-6:30pm
Fri 8am-10pm
Saturday and Sunday
Closed with an
occasional rental
group
7 days a week
Mon-Th 7pm-8am
Fri –Sat* 11pm-8am
Afterschool center for youth
and teens. Rooms include
offices, restrooms,
classrooms, multi-purpose
room, patio, and kitchen.

Program features daily
youth activities and a
facility rental program.

Police Station & Gym
1030 East Hillsdale
Boulevard
24-hour a day
7 days per week
7 days a week
6pm-6am

Secure one-story building
consisting of administrative
offices, gym and meeting
spaces. Janitorial
personnel entering the
building must check in and
out with Police personnel.

Council Chambers
620 Foster City
Boulevard
Monday through
Friday,
8am-6pm; first and
third Mondays and
Thursdays until 11pm;
Saturday and Sunday,
Closed
5 days a week
Mon-Fri
11pm-6am
Adjacent to City Hall,
Council Chambers consists
of meeting rooms,
restrooms, and foyer.

Occasional special
meetings will be
announced.

City Hall
610 Foster City
Boulevard

Emergency Operations
Center
1040 East Hillsdale
Boulevard, First Floor
Mon-Fri 7am-7pm
Sat-Sun Closed
5 days a week
Mon-Fri 7pm-7am
City Hall houses the
administrative offices in a
three-story structure.

The Emergency Operations
Center consists of a
meeting room, hallway,
restrooms and elevator.

Fire Station 1040 East
Hillsdale Boulevard
1st Floor ONLY
Mon-Fri 8am-6pm
Sat-Sun Closed
7 days a week
6pm-6am
Fire station first floor
contains
EOC meeting room,
Hallways, 2 restrooms &
gym
Temporary Recreation
Center Facilities
Near 670 Shell Blvd*
Mon-Fri 7am-7pm
Sat-Sun Closed
5 days a week
Mon-Fri 7pm-7am
Secured portables
consisting of administrative
offices and meeting spaces
and temporary bathroom.

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Location Facility Operating
Hours
Service Schedule Notes
Recreation Center
650 Shell Boulevard*
Mon-Fri 8am-10pm
Sat 9am-11pm
Sun 9am-10pm
7 days a week
Mon-Fri 11pm-7am
Sat 12am-7am
Sun 11pm-7am
Administrative offices,
classrooms, meeting
spaces and restrooms
* Recreation Center, Community Center, Emergency Operations Center, and The VIBE Teen Center weekend hours may vary depending on the facility rental schedule. CITY staff will provide an event calendar each month.

Note: The current Recreation Center is anticipated to be demolished in Fall 2024. During construction, temporary “portables” will be used. Proposals must contain pricing for both the Temporary and Permanent facilities, but only one of these facilities will be serviced at any given time, depending upon the construction schedule.

b. SUMMARY OF WORK TO BE PERFORMED:

The following is a general summary of the work to be performed. The list of tasks by building, space, and frequency is outlined in the City of Foster City Janitorial Services Scope of Work, attached hereto as Exhibit A.

Typical Daily Tasks:

1. Vinyl and Linoleum – sweep with an anti -dust treated mop. Wet mop large meeting rooms, kitchens, locker rooms and ceramics room floors.

2. Carpet and M ats – vacuum high traffic areas ( main entries at all doors, lobbies, main corridors in buildings and open areas).

3. Drinking Fountains – clean, disinfect and polish.

4. Glass and Windows – spot clean all interior and exterior glass surfaces in building entrances and lobby to a height of 8”; removing any and all fingerprints, smudges, dirt, cobwebs, insects, grease, oils or accumulations from these areas. Cleaning of glass areas shall include window and door frames and shall extend the full distance of the entrance.

5. Wastebaskets/Trash Containers – empty and reline plastic liners when dirty, ripped, or damaged with appropriate size and strength. Replace plastic liners on a monthly basis regardless of condition. Remove all other boxes, cardboard and containers to designated dumpsters. Break down all cardboard boxes before discarding in dumpster.

6. Recycle containers – empty on an as -needed basis into large recycle bins for pick-up by solid waste collection service.

7. Restrooms – clean and disinfect all sinks, urinals, toilets, partitions, countertops, and plumbing. Damp mop floors with NABC disinfectant; clean

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and polish chrome and stainless fixtures; clean, disinfect and deodorize interior and exterior of sanitary napkin depositories; replace disposal bags and plastic trash liners. Clean mirrors to be streak free; install disinfectant in floor drains and deodorizers in urinals. Fill all dispensers (soap, toilet paper, seat covers, paper towels, sanitary supplies).

8. Showers, Locker Rooms, Dressing Rooms – clean and disinfect all walls, floors, and curtains. Entire area to be free of streaks, soap scum, fungi, mildew, hair, urine deposits, and unpleasant odors. Install disinfectant in floor drains, disinfect HVAC vents and diffusers, clean light fixtures, polish chrome and stainless fixtures and clean mirrors to be streak free. Vacuum carpet areas and remove all stains. Clean and disinfect lockers inside and outside if unlocked. Do not disturb private belongings.

9. Kitchen Sinks, Counters Tabletops and Appliances – wash and disinfect.

10. Classroom/Meeting Room Countertops, Sinks, Fixtures – damp wipe.

Typical Weekly Tasks (to be performed at least once per week):

1. Vinyl and Linoleum – damp or wet mop using warm water with commercial- grade cleaner that leaves no visible or sticky cleaner residue when dry. Rinse, if necessary, with clear, warm water and clean mop. Wipe any and all baseboards free of moisture and dirt. Protect all wall surfaces.

2. Stone, Marble, Slate, Granite, Ceramic Tile Travertine Floors, Stairs – damp mop with good quality cleaner recommended for the surface type on a dedicated mop. Ensure that floors are free of dust, dirt, cleaning material residue, streaks, mop strands, grease, and spills and thoroughly maintained to present an acceptable gloss. Protect walls from splashing and wipe baseboards of moisture and chemicals. Polish wood moldings if necessary to prevent moisture damage.

3. Carpet and M ats – v acuum with an industrial grade vacuum the entire carpeted area, including under chairs, tables, around furniture legs, and behind desks and furniture. Return moved items to their original position. Pick up staples and other hard to remove items by hand. The carpet shall be free of visible dirt, litter, and soil.

4. Wall, Doors, and Ceilings – remove any and all fingerprints, smudges, dirt or accumulations.

5. Doors and E ntrances – clean and polish interior and exterior surfaces to a height of 8”, removing any and all fingerprints, smudges, dirt, cobwebs, insects, grease, oils or accumulations the full distance of the entrance front.

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6. Dusting – remove all accumulated dust, dirt, and debris from the surfaces, corners, crevices of all shelving, desks, bookcases, tables, partition tops, window ledges and baseboards. Use treated mops and cloths to help prevent the redistribution of it into the air. Desktops are to be dusted only if papers have been removed.

7. Kitchens – damp wipe cabinet fronts and pulls, towel dispensers, and exterior of appliances (refrigerator, freezer, microwave, stove and ovens).

8. Classroom/Meeting Room Fixtures and Sinks – clean and sanitize.

9. Staircases and R ailings – d ust and wipe all staircase areas, including all railings and areas around and underneath stairs, vacuum carpet areas, spot clean carpet.

10. Door Handles and Light Switches – use damp cloth to remove all smudges, fingerprints and dirt; apply disinfectant.

11. Janitorial Closets – clean, organize, and stock on a regular basis and maintain all MSDS information in each closet.

Typical Monthly Tasks (to be performed at least once per month):

1. Vinyl and Linoleum – clean and wax (exclude restroom floors). In high traffic areas, dust entire floor and all corners with treated mop, damp mop and remove any spots or stains. Allow flooring to dry completely. Apply wax, feathering out to corners. Corners are to be waxed only as part of complete stripping process.

2. Carpet and Mats – spot clean high-traffic areas (main entries at all doors, elevator lobbies, and elevators and where food is available, main corridors ).

Evenings and/or weekends will be required.

3. Dusting – r emove accumulated dust, dirt, debris, and cobwebs from the surfaces, corners, crevices, light fixtures, window coverings, window ledges, doorframes and jambs and blinds as needed. Clean HVAC vent and ceiling tiles.

4. Stairwells – dust, vacuum, and wet mop interior of all stairwells, including interior fire escape staircases.

5. Furniture – clean and polish wooden furniture with approved polish as needed. Do not disturb any paperwork or desks, tables, and files. Vacuum upholstered furniture.

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6. Kitchen Floors – m op, degrease and disinfect with disinfectant. Refinish, if necessary, to maintain original appearance. D amp wipe exterior of appliances (refrigerator, freezer, stove, microwave and oven).

7. Wastebaskets/Trash Containers – wash and disinfect all wastebaskets and trash containers in all interior locations.

Typical Quarterly Tasks (to be performed at least once every three months):

1. Vinyl and L inoleum – degrease, mop with disinfectant and machine scrub floors.

2. Carpet (high traffic areas) – thoroughly vacuum, clean with good- quality cleaner and/or solvent, hot -water steam and vacuum extraction. Cover wet traffic areas with paper until dry. Use ventilating fans to hasten drying. Use water-resistant coated pads under furniture.

3. Interior Glass and Windows, Including Skylights – clean interior glass surfaces, remove any and all fingerprints, smudges, dirt, cobwebs, insects, grease, oils or accumulations. Cleaning of interior glass areas shall include window frames and ledges.

4. Air Vents, Thresholds, Grease Traps, and Grills – clean.

Typical Semi-Annual Tasks (to be performed at least two times per year):

1. Stone, Marble, Slate, Granite, Ceramic and Travertine Floors, Stairs – use a conventional (buffer) machine with a 3M blue cleaning pad and a trigger spray bottle with clean water to buff. Let floor dry. Follow with a dust mopping and then a damp mopping. Let floor dry. Apply two (2) coats of floor finish. Ensure that floor is thoroughly dry between coats. Within 24 hours of last application of finish, buff with a high -speed buffing machine (1,100rpm). Protect wall finishes and wipe down baseboards to be free of moisture and residue. Polish as needed.

2. Carpet (classrooms) – thoroughly vacuum all areas, clean as needed with good-quality cleaner and/or solvent, hot-water steam and vacuum extraction.

Cover wet traffic areas with paper until dry. Use ventilating fans to hasten drying in heavy-use areas. Use water-resistant coated pads under furniture.

3. Exterior Glass and Windows, Including Skylights – clean all exterior glass surfaces, removing any and all fingerprints, smudges, dirt, cobwebs, insects, grease, oils or accumulations. Cleaning of exterior glass areas shall include window frames and ledges.

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c. CONTRACTOR PROHIBITIONS:

1. Contractor may not store unrinsed or dirty mops or mop buckets in the storage areas.

2. Contractor may not make unauthorized alterations to the building.

3. Contractor may not use equipment or any portion of the facilities not related to performance of this Service Schedule.

4. Contractor may not use product that will cause damage to any surfaces or use any chemicals not approved by CITY.

d. General Provisions Regarding Floor Coverings:

Floor coverings vary in each building. They may include, but are not limited to:
carpet, vinyl, terrazzo, ceramic tile, concrete, and wood floor coverings.

1. CONTRACTOR shall be responsible for performing the prescribed and appropriate cleaning method for each type of floor covering.

2. A double mop system shall be used. Restroom mops shall be different from mops used for all other areas.

4. ADDITIONAL SERVICES:

CONTRACTOR, as the provider of janitorial services for CITY, shall provide additional services as requested by the CITY Building Maintenance Manager. The Building Maintenance Manager shall make such request s for additional non- emergency services with 48-hour notice. The 48-hour noticing requirement shall not apply, however, should the Manager determine that the service is an emergency, and required for public health and safety. In case of an emergency, CONTRACTOR shall provide service within three (3) hours of notification by CITY.

5. CONTRACTOR STAFFING AND BUILDING ACCESS:

CONTRACTOR shall provide labor, equipment, tools, supplies (unless otherwise noted), supervision, management , and other resources and services needed to perform the required work.

Employees will be required to adhere to CITY safety regulations and policies.

CONTRACTOR agrees that it will, upon notice, immediately remove any supervisor or employee who is performing Services in a manner unsatisfactory to CITY.

CONTRACTOR shall not represent that it or its employees are agents or employees of CITY.

CONTRACTOR shall ensure that its p ersonnel are thoroughly trained in and qualified for the work assigned. Prior to working in any CITY building, personnel shall have received training in Cal/OSHA’s Hazardous Communication Program and proper bloodborne pathogen procedures using an established program, or shall be immediately supervised by an employee so trained and qualified.

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Only assigned personnel will be permitted on CITY premises. A list of employees and potential employees, which includes dates of birth, social security numbers, and valid IDs shall be submitted to the Building Maintenance Manager. CONTRACTOR shall provide Department of Justice background checks on all employees proposed for work assignment at the Police Department. CITY reserves the right to conduct background checks and reject any proposed employee that represents a liability or potential liability based on the results of the background check. All CONTRACTOR employees shall display identification cards or uniform shirts that include their name and company at all times.

CONTRACTOR’S employees are required to provide service in such a way as to not interfere with CITY activities. A schedule of CITY activities will be supplied to the CONTRACTOR monthly or more frequently, as necessary.

CONTRACTOR shall establish and implement methods of ensuring that keys are not lost or misplaced and are not used by unauthorized persons. No keys shall be duplicated. Lost keys shall be reported immediately to the Building Maintenance Manager. Costs associated with key replacement and/or re-keying locks because of a lost key will be the sole responsibility of CONTRACTOR.

6. SUBCONTRACTORS:

CONTRACTOR shall not assign, transfer, or enter into any subcontract under this Agreement, nor any part thereof, without first obtaining the written consent of the Building Maintenance Manager or his/her designee. Contractor and any approved subcontractors will be expected to comply with the terms of the Agreement attached to the RFP.

7. MATERIALS:

CITY shall provide CONTRACTOR toilet tissue, paper towels, trash can liners, hand soap, toilet seat covers, and cleaning equipment. CONTRACTOR shall provide all cleaning agents/chemicals. All cleaning supplies shall be approved by CITY prior to use. CONTRACTOR may consult with CITY on specific materials currently in use by CITY. All cleaning products used by CONTRACTOR must comply with current “Green” standards and requirements.

CONTRACTOR shall submit to CITY twelve (12) copies of MSDS data sheets for all CITY-approved CONTRACTOR-supplied materials and cleaning products in use by CONTRACTOR.

8. STANDARDS OF PERFORMANCE:

CONTRACTOR shall ensure that CITY buildings are continually maintained in a manner consistent with highest industry standards to insure cleanliness, health, and sanitation and shall provide regular and systematic inspections by its own

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supervisory personnel of all premises where services are performed. Written documentation of inspections must be maintained by CONTRACTOR and may be reviewed by CITY upon request.

Performance standards shall include, but not be limited to:

1. The absence of litter or undesirable debris;

2. The absence of dust on surfaces;

3. The complete, comprehensive and thorough cleaning of any item, including corners, inside, outside, top and bottom, under and over all surfaces;

4. The absence of surface marks, spills spots, marks, soil or other residue;

5. The absences of soil, wax or other buildup;

6. The absence of germs, bacteria, fungus, molds and other sources of infections; and

7. The immediate reporting to Building Maintenance staff of all problems that require repair.

9. RECORD KEEPING:

CONTRACTOR shall document and record all work performed other than daily services, showing date of performance, area where work wa s performed, and percentage of work performed. Records will be made available to the Building Maintenance Manager upon request.

10. COMMUNICATION:

CONTRACTOR shall designate a contact person to be available daily during business hours, as well as a contact person(s) to be available daily during off-hours for emergencies.

11. SAFETY; ACCIDENTS; EQUIPMENT SAFETY:

CONTRACTOR shall post proper signage around all maintenance activities and ensure safe work sites. Restrooms must be closed to the public during maintenance activities.

Any and all accidents, regardless of how minor, involving another person, private property, or vehicle, shall be reported immediately to CITY Building Maintenance Manager or his/her designee. The CITY Building Maintenance Manager or his/her designee shall receive a copy of any written reports of incidents on CITY property.

CONTRACTOR shall protect public and private utilities from damage, including all water, sewer, gas, or other conduits, all hydrants , and all other property that could become damaged during the process of providing these services.

12. HOLIDAYS:

5.6 Attachment 2 - Request for Proposals for Citywide Janitorial Services through September 30, 2026, with an option for 36 months of extensions

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Janitorial services will not be required on the following official CITY holidays in any building except the Police Station , which is open on all holidays and will require service:

• New Year’s Eve
• New Year’s Day
• Martin Luther King, Jr. Day
• Presidents’ Day
• Memorial Day
• Independence Day (Exception : Permanent/Temporary Recreation Center restrooms and solid waste receptacles require service on Independence Day.)
• Labor Day
• Veteran’s Day
• Thanksgiving Day
• Day after Thanksgiving
• Christmas Eve
• Christmas Day

13. CITY RESPONSIBILITIES:

CITY shall manage its buildings and facilities operations. CITY shall maintain adequate emergency backup supply and stock of toilet tissue, paper towels, trash can liners, hand soap, and toilet seat covers.

14. CONTRACT TERM:

The initial contract period shall be from October 1, 2024, to September 30, 2026.

The contract includes 36 months of contract term extensions by mutual agreement.

These extensions may be exercised in increments from two (2) to twelve (12) months.

ATTACHMENT:

Exhibit A – City of Foster City Janitorial Services Scope of Work Exhibit B – Agreement for Janitorial Services (draft)

5.6 Attachment 2 - Request for Proposals for Citywide Janitorial Services through September 30, 2026, with an option for 36 months of extensions

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Exhibit A - City of Foster City Janitorial Services Scope of Work 1

Facilities:
• RC – T*: Recreation Center - Temporary Trailers, Near 670 Shell Boulevard (3 classroom office/meeting portables & 1 restroom)
• RC – C*: Recreation Center - Current Facility, 650 Shell Boulevard (scheduled to be replaced) • CC: Community Center, 1000 E. Hillsdale Boulevard (Second Floor) • VT: The VIBE Teen Center, 670 Shell Boulevard
• GC: Government Center (City Hall 610 Foster City Boulevard., Council Chambers 620 Foster City Boulevard, Police Station 1030 E. Hillsdale Boulevard, Corporation Yard 100 Lincoln Centre Drive • LI: Foster City Library, 1000 E. Hillsdale Boulevard (First Floor)

* Note: The current Recreation Center is anticipated to be demolished in Fall 2024. During construction, temporary “portables” will be used. Proposals must contain pricing for both the Temporary and Permanent facilities, but only one of these facilities wi ll be serviced at any given time, depending upon the construction schedule.

Area Item Work Description
Daily
Weekly
Monthly
Quarterly
Semi-Annual

RC-T Restrooms
RC-C Restrooms
Sinks, toilets, urinals, partitions,
countertops, and plumbing
A. Clean and disinfect A
RC-T Restrooms
RC-C Restrooms
Walls, doors, and ceilings A. Spot clean; remove fingerprints, smudges, cobwebs, etc. A RC-T Restrooms
RC-C Restrooms
Floors A. Sweep
B. Damp/Wet mop with warm water and cleaner
C. Machine scrub floors

A B C
RC-T Restrooms
RC-C Restrooms
Wastebaskets/Trash A. Empty/clean/reline trash, recycling and organics receptacles B. Wash and disinfect receptacles (interior and exterior) A B
RC-T Restrooms
RC-C Restrooms
Mirrors A. Clean mirrors to be streak free A

5.6 Attachment 2 - Request for Proposals for Citywide Janitorial Services through September 30, 2026, with an option for 36 months of extensions

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Exhibit A - City of Foster City Janitorial Services Scope of Work 2

Area Item Work Description
Daily
Weekly
Monthly
Quarterly
Semi-Annual
RC-T Restrooms
RC-C Restrooms
Chrome/Stainless (door handles, rails,
etc.)
A. Clean and polish A
RC-T Restrooms
RC-C Restrooms
Sanitary Dispensers A. Clean, disinfect, deodorize interior and exterior; empty and replace disposal bags as needed
A
RC-T Restrooms
RC-C Restrooms
Air Vents (lower than 10') A. Dust and Clean A
RC-T Restrooms
RC-C Restrooms
Paper towel, seat covers, soap, and
toilet paper dispensers
A. Refill as needed A

RC-T Classrooms
RC-C Classrooms
Wastebaskets/Trash A. Empty/clean/reline trash, recycling and organics receptacles B. Wash and disinfect receptacles (interior and exterior) A B
RC-T Classrooms
RC-C Classrooms
Floors A. Sweep, dust mop all hard floors; vacuum carpeted areas as needed (around furniture if needed)
B. Damp/wet mop floors
C. Machine scrub all tile floors

A B C
RC-T Classrooms
RC-C Classrooms
Doors, windows ledges, ceilings, and
walls
A. Remove all marks and cobwebs as needed A
RC-T Classrooms
RC-C Classrooms
Windows A. Spot clean glass and remove all cobwebs A
RC-T Classrooms
RC-C Classrooms
Counters, sinks, and fixtures A. Damp wipe
B. Clean and sanitize sinks and fixtures
A B
RC-T Classrooms
RC-C Classrooms
Soap and paper towel dispensers A. Refill as needed A
RC-T Classrooms
RC-C Classrooms
Air vents (under 10') and thresholds A. Clean (vacuum/wipe down) A

RC-C Kitchens Sinks, counters, and fixtures A. Clean, sanitize, and polish A RC-C Kitchens Wastebaskets/Trash A. Empty/clean/reline trash receptacles; empty recycling containers
B. Wash and disinfect receptacles (interior and exterior) A B
RC-C Kitchens Soap and Paper Towel Dispensers A. Refill as needed A

5.6 Attachment 2 - Request for Proposals for Citywide Janitorial Services through September 30, 2026, with an option for 36 months of extensions

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Exhibit A - City of Foster City Janitorial Services Scope of Work 3

Area Item Work Description
Daily
Weekly
Monthly
Quarterly
Semi-Annual
RC-C Kitchens Cabinets and appliances A. Damp wipe cabinet fronts and pulls, towel dispensers, and appliances (exterior of refrigerator, freezer, stove, microwave, oven, dishwasher)
A
RC-C Kitchens Walls, doors, and ceilings A. Spot clean; remove fingerprints, smudges, cobwebs, etc. A RC-C Kitchens Air Vents (less than 10'), thresholds,
grease traps, and grills
A. Clean A
RC-C Kitchens Floors A. Wet mop
B. Degrease and mop with disinfectant
C. Machine scrub tile floors
A B
C

RC-C Offices Wastebaskets/Trash A. Empty/clean/reline trash receptacles; empty recycling containers
B. Wash and disinfect receptacles (interior and exterior) A B
RC-C Offices Furniture (desks, chairs, tables,
cabinets, etc., without disturbing
paperwork)
A. Dust and place furniture in correct locations A
RC-C Offices Floors A. Vacuum as needed
B. Vacuum entire carpeted area including under/around furniture C. Shampoo, extract traffic carpet areas if needed

A B C
RC-C Offices Doors, windows, ledges, ceilings, and
walls
A. Clean entrance glass doors as needed
B. Remove all marks and cobwebs as needed
A B
RC-C Offices Light switches, and door handles A. Dust and disinfect A

RC-C Lobby,
Common
Wastebaskets/Trash A. Empty/clean/reline trash receptacles; empty recycling containers
B. Wash and disinfect receptacles (interior and exterior) A B
RC-C Lobby,
Common
Furniture A. Dust; place in correct locations A
RC-C Lobby,
Common
Drinking Fountains A. Clean, disinfect, and polish A

5.6 Attachment 2 - Request for Proposals for Citywide Janitorial Services through September 30, 2026, with an option for 36 months of extensions

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Exhibit A - City of Foster City Janitorial Services Scope of Work 4

Area Item Work Description
Daily
Weekly
Monthly
Quarterly
Semi-Annual
RC-C Lobby,
Common
Floors A. Sweep, dust mop all hard floors; vacuum traffic carpeted areas B. Damp/wet mop floors
C. Machine scrub all tile floors
D. Shampoo and extract carpeted floors if needed

A B C D
RC-C Lobby,
Common
Windows and glass doors A. Spot clean all glass A
RC-C Lobby,
Common
Doors, window ledges, ceilings, and
walls
A. Clean entrance glass doors as needed
B. Remove all marks and cobwebs as needed
A B

RC-C Ceramics Counters, sinks, and fixtures A. Damp wipe A RC-C Ceramics Wastebaskets/Trash A. Empty/clean/reline trash receptacles; empty recycling containers
B. Wash and disinfect receptacles (interior and exterior) A B
RC-C Ceramics Doors, ceilings, and walls A. Remove all marks and cobweb A RC-C Ceramics Floors A. Sweep, dust mop and/or damp mop floors B. Wet mop floor with hot water only
A B
RC-C Ceramics Windows A. Spot clean interior glass
B. Remove all cobwebs
A B
RC-C Ceramics Air vents (under 10'), thresholds, and
clay trap
A. Clean out clay trap as needed
B. Clean air vents and thresholds
A B

CC Restrooms Sinks, toilets, urinals, partitions,
countertops, and plumbing
A. Clean and disinfect A
CC Restrooms Urinal deodorant screens A. Install A
CC Restrooms Walls, doors, partitions, and ceilings A. Spot clean; remove fingerprints, smudges, cobwebs, etc. A CC Restrooms Floors A. Sweep
B. Damp/Wet mop with warm water and cleaner
C. Machine scrub floors
A B C
CC Restrooms Wastebaskets/Trash A. Empty/clean/reline trash, recycling and organics receptacles.

B. Wash and disinfect receptacles (interior and exterior) A B

5.6 Attachment 2 - Request for Proposals for Citywide Janitorial Services through September 30, 2026, with an option for 36 months of extensions

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Exhibit A - City of Foster City Janitorial Services Scope of Work 5

Area Item Work Description
Daily
Weekly
Monthly
Quarterly
Semi-Annual
CC Restrooms Mirrors A. Clean mirrors to be streak free A CC Restrooms Chrome/Stainless (door handles, rails,
etc.)
A. Clean and polish A
CC Restrooms Sanitary Dispensers A. Clean, disinfect, deodorize interior and exterior; empty and replace disposal bags as needed
A
CC Restrooms Paper towel, seat covers, soap, and
toilet paper dispensers
A. Refill as needed A

CC Wind Room +
Kitchenette
Sinks, counters, and fixtures A. Clean, sanitize, and polish A CC Wind Room +
Kitchenette
Wastebaskets/Trash A. Empty/clean/ reline trash, recycling and organics receptacles.

B. Wash and disinfect receptacles (interior and exterior) A B
CC Wind Room +
Kitchenette
Soap and Paper Towel Dispensers A. Refill as needed A
CC Wind Room +
Kitchenette
Cabinets and appliances A. Damp wipe cabinet fronts and pulls, towel dispensers, and appliances
A
CC Wind Room +
Kitchenette
Walls, doors, and ceilings A. Spot clean; remove fingerprints, smudges, cobwebs, etc. A CC Wind Room +
Kitchenette
Floors A. Wet mop
B. Degrease and mop with disinfectant
A B

CC Patio Floors A. Sweep patio floor A
CC Patio Wastebaskets/Trash A. Empty/clean/reline trash, recycling and organics receptacles.

B. Wash and disinfect receptacles (interior and exterior) A B
CC Patio Windows and glass doors A. Spot clean glass as needed if smudged or dirty A

CC Office (not
Village office)
Wastebaskets/Trash A. Empty/clean/reline trash, recycling and organics receptacles; B. Wash and disinfect receptacles (interior and exterior) A B
CC Office (not
Village office)
Floors A. Vacuum as needed
B. Vacuum entire carpeted area including under/around furniture A B

5.6 Attachment 2 - Request for Proposals for Citywide Janitorial Services through September 30, 2026, with an option for 36 months of extensions

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Exhibit A - City of Foster City Janitorial Services Scope of Work 6

Area Item Work Description
Daily
Weekly
Monthly
Quarterly
Semi-Annual
CC Office (not
Village office)
Doors, windows, ledges, ceilings, and
walls
A. Remove all marks and cobwebs
B. Clean entrance glass doors
A B
CC Office (not
Village office)
Light switches and door handles A. Dust and disinfect A

CC Entry, Lobby,
Common
Wastebaskets/Trash A. Empty/clean/reline trash, recycling and organics receptacles B. Wash and disinfect receptacles (interior and exterior) A B
CC Entry, Lobby,
Common
Drinking Fountains A. Clean, disinfect, and polish A
CC Entry, Lobby,
Common
Floors A. Sweep, dust mop all hard floors; vacuum traffic carpeted areas B. Damp/wet mop floors
C. Machine scrub all tile floors
D. Shampoo and extract carpeted floors
A B C
D

CC Entry, Lobby,
Common
Elevators A. Sweep floor; Damp wipe and polish walls and doors A CC Entry, Lobby,
Common
Staircases and railings A. Sweep, dust, and wipe all staircase areas, including all railings and areas around and underneath stairs
B. Dust and wet mop
A B
CC Entry, Lobby,
Common
Windows and glass doors A. Spot clean all glass
B. Clean interior
C. Clean exterior
A B
C: 1x/year
CC Entry, Lobby,
Common
Doors, ceilings, and walls A. Clean entrance glass doors as needed B. Remove all marks and cobwebs as needed
A B

CC Class / Meeting
Rooms
Wastebaskets/Trash A. Empty /clean/reline trash, recycling and organics receptacles; B. Wash and disinfect receptacles (interior and exterior) A B

5.6 Attachment 2 - Request for Proposals for Citywide Janitorial Services through September 30, 2026, with an option for 36 months of extensions

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Exhibit A - City of Foster City Janitorial Services Scope of Work 7

Area Item Work Description
Daily
Weekly
Monthly
Quarterly
Semi-Annual
CC Class /
Meeting Rooms
Floors A. Sweep, dust mop all hard floors; vacuum carpeted areas as needed
B. Damp/wet mop floors
C. Machine scrub all tile floors
D. Shampoo and extract carpeted floors

A B C D
CC Class /
Meeting Rooms
Furniture A. Dust and place furniture in correct locations A CC Class / Meeting
Rooms
Doors, windows ledges, ceilings, and
walls
A. Remove all marks and cobwebs A
CC Class / Meeting
Rooms
Windows A. Spot clean all glass
B. Clean interior
C. Clean exterior
A B
C: 1x/year
CC Class / Meeting
Rooms
Counters, sinks, and fixtures A. Damp wipe
B. Clean and sanitize sinks and fixtures
A B
CC Class / Meeting
Rooms
Soap and paper towel dispensers A. Refill as needed A
CC Class / Meeting
Rooms
Air vents and thresholds A. Clean A

CC Janitorial,
Mechanical
Closets A. All closets shall be kept clean and neatly arranged. Tools and supplies should be properly stored
A
CC Janitorial,
Mechanical
Mops A. Empty and clean mop buckets. Sanitize mop heads and hang up to dry
A
CC Janitorial,
Mechanical
Trash Cans A. Remove trash, recycling and organics A
CC Janitorial,
Mechanical
Safety Hazards A. Report safety hazards immediately. Keep MSDS records A

5.6 Attachment 2 - Request for Proposals for Citywide Janitorial Services through September 30, 2026, with an option for 36 months of extensions

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Exhibit A - City of Foster City Janitorial Services Scope of Work 8

Area Item Work Description
Daily
Weekly
Monthly
Quarterly
Semi-Annual
CC Janitorial,
Mechanical
Floors A. Sweep and mop floors. Change mop heads as needed A CC Janitorial,
Mechanical
Air vents and thresholds A. Clean A

VT Restrooms Sinks, toilets, urinals, partitions,
countertops, and plumbing
A. Clean and disinfect A
VT Restrooms

Urinal deodorant screens A. Install A
VT Restrooms

Floors A. Sweep
B. Damp/Wet mop with warm water and cleaner
C. Machine scrub floors
A B C
VT Restrooms

Wastebaskets/Trash A. Empty/clean/reline trash, recycling and organics receptacles B. Wash and disinfect receptacles (interior and exterior) A B
VT Restrooms

Walls, doors, and ceilings A. Spot clean; remove fingerprints, smudges, cobwebs, etc. A VT Restrooms

Mirrors A. Clean mirrors to be streak free A
VT Restrooms

Chrome/Stainless (door handles, rails,
etc.)
A. Clean and polish A
VT Restrooms

Sanitary Dispensers A. Clean, disinfect, deodorize interior and exterior; empty and replace disposal bags as needed
A
VT Restrooms

Paper towel, seat covers, soap, and
toilet paper dispensers
A. Refill as needed A
VT Restrooms

Air Vents and thresholds A. Clean A

VT Kitchen Sinks, counters, and fixtures A. Clean, sanitize, and polish A

5.6 Attachment 2 - Request for Proposals for Citywide Janitorial Services through September 30, 2026, with an option for 36 months of extensions

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Exhibit A - City of Foster City Janitorial Services Scope of Work 9

Area Item Work Description
Daily
Weekly
Monthly
Quarterly
Semi-Annual
VT Kitchen Wastebaskets/Trash A. Empty/clean/ reline trash, recycling and organics receptacles B. Wash and disinfect receptacles (interior and exterior) A B
VT Kitchen Soap and Paper Towel Dispensers A. Refill as needed A VT Kitchen Cabinets and appliances A. Damp wipe cabinet fronts and pulls, towel dispensers, and appliances (exterior of refrigerator, freezer, stove, microwave, oven, dishwasher)
B. Damp wipe interior of stove, microwave, and oven
A
B

VT Kitchen Walls, doors, and ceilings A. Spot clean; remove fingerprints, smudges, cobwebs, etc. A VT Kitchen Air Vents, thresholds, grease traps, and
grills
A. Clean A
VT Kitchen Floors A. Wet mop
B. Degrease and mop with disinfectant
C. Deep scrub
A B C

VT Office,
Conference, Study
Wastebaskets/Trash A. Empty/clean/reline trash, recycling and organics receptacles A VT Office,
Conference,
Study
Furniture (including desks, chairs,
tables, cabinets, etc., without
disturbing paperwork)
A. Dust and place furniture in correct locations A
VT Office,
Conference, Study
Floors A. Vacuum as needed
B. Vacuum entire carpeted area including under/around furniture C. Shampoo, extract traffic carpet areas
A B C
VT Office,
Conference, Study
Doors, windows, ledges, ceilings, and
walls
A. Remove all marks and cobwebs
B. Clean HVAC vent and ceiling tiles
A B
VT Office,
Conference, Study
Light switches, and door handles A. Dust and disinfect A

VT Entry, Lobby,
Common
Wastebaskets/Trash A. Empty/clean/reline trash, recycling and organics receptacles B. Wash and disinfect receptacles (interior and exterior) A B
VT Entry, Lobby,
Common
Furniture A. Dust; place in correct locations
B. Vacuum upholstered furniture
A B

5.6 Attachment 2 - Request for Proposals for Citywide Janitorial Services through September 30, 2026, with an option for 36 months of extensions

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Exhibit A - City of Foster City Janitorial Services Scope of Work 10

Area Item Work Description
Daily
Weekly
Monthly
Quarterly
Semi-Annual
VT Entry, Lobby,
Common
Drinking Fountains A. Clean, disinfect, and polish A
VT Entry, Lobby,
Common
Floors A. Sweep, dust mop all hard floors; vacuum traffic carpeted areas B. Damp/wet mop floors
C. Machine scrub all tile floors
D. Shampoo, extract carpeted floors
A B C
D

VT Entry, Lobby,
Common
Windows and glass doors A. Spot clean all glass
B. Clean interior
A B
VT Entry, Lobby,
Common
Doors, window ledges, ceilings, and
walls
A. Clean entrance glass doors
B. Remove all marks and cobwebs as needed
A B

VT Janitorial,
Mechanical
Closets A. All closets shall be kept clean and neatly arranged. Tools and supplies should be properly stored
A
VT Janitorial,
Mechanical
Mops A. Empty and clean mop buckets. Sanitize mop heads and hang up to dry
A
VT Janitorial,
Mechanical
Trash Cans A. Remove trash, recycling and organics A
VT Janitorial,
Mechanical
Safety Hazards A. Report safety hazards immediately A
VT Janitorial,
Mechanical
Floors A. Sweep and mop floors. Change mop heads as needed A VT Janitorial,
Mechanical
Air vents and thresholds A. Clean A

VT Activity Wastebaskets/Trash A. Empty/clean/reline trash, recycling and organics receptacles B. Wash and disinfect receptacles (interior and exterior) A B
VT Activity Floors A. Sweep, dust mop all hard floors
B. Damp/wet mop floors
C. Machine buff tile floors
A B C
VT Activity Doors, windows ledges, ceilings, and
walls
A. Remove all marks and cobwebs A

5.6 Attachment 2 - Request for Proposals for Citywide Janitorial Services through September 30, 2026, with an option for 36 months of extensions

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Exhibit A - City of Foster City Janitorial Services Scope of Work 11

Area Item Work Description
Daily
Weekly
Monthly
Quarterly
Semi-Annual
VT Activity Windows A. Spot clean glass and remove all cobwebs B. Clean interior
A B
VT Activity Counters, sinks, and fixtures A. Damp wipe B. Clean and sanitize sinks and fixtures
A B
VT Activity Paper towel and soap dispensers A. Refill as needed A VT Activity Air vents and thresholds A. Clean A

GC Restrooms Sinks, toilets, urinals, partitions,
countertops, and plumbing
A. Clean and disinfect A
GC Restrooms Urinal deodorant screens A. Install A
GC Restrooms Floors A. Sweep
B. Damp/Wet mop with warm water and cleaner
C. Machine scrub floors
A B C
GC Restrooms Wastebaskets/Trash A. Empty/clean/reline trash receptacles B. Wash and disinfect receptacles (interior and exterior) A B
GC Restrooms Walls, doors, and ceilings A. Spot clean; remove fingerprints, smudges, cobwebs, etc. A GC Restrooms Mirrors A. Clean mirrors to be streak free A GC Restrooms Chrome/Stainless (door handles, rails,
etc.)
A. Clean and polish A
GC Restrooms Sanitary Dispensers A. Clean, disinfect, deodorize interior and exterior; empty and replace disposal bags as needed
A
GC Restrooms Paper towel, seat covers, soap, and
toilet paper dispensers
A. Refill as needed A
GC Restrooms Air Vents (under 10') and thresholds A. Clean A

GC Lunchroom Sinks, counters, and fixtures A. Clean, sanitize, and polish A GC Lunchroom Wastebaskets/Trash A. Empty/clean/ reline trash, recycling and organics receptacles; B. Wash and disinfect receptacles (interior and exterior) A B
GC Lunchroom Soap and Paper Towel Dispensers A. Refill as needed A

5.6 Attachment 2 - Request for Proposals for Citywide Janitorial Services through September 30, 2026, with an option for 36 months of extensions

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Exhibit A - City of Foster City Janitorial Services Scope of Work 12

Area Item Work Description
Daily
Weekly
Monthly
Quarterly
Semi-Annual
GC Lunchroom Cabinets and appliances A. Damp wipe cabinet fronts and pulls, towel dispensers, and appliances (exterior of refrigerator, freezer, stove, microwave, oven, dishwasher)
B. Damp wipe interior of stove, microwave, and oven
A B
GC Lunchroom Walls, doors, and ceilings A. Spot clean; remove fingerprints, smudges, cobwebs, etc. A GC Lunchroom Air Vents and thresholds A. Clean (vacuum/wipe down) A GC Lunchroom Floors A. Wet mop
B. Degrease and mop with disinfectant
C. Strip and wax
A B C

GC Conference Wastebaskets/Trash A. Empty/clean/reline trash, recycling and organics receptacles; B. Wash and disinfect receptacles (interior and exterior) A B
GC Conference Furniture (including desks, chairs,
tables, cabinets, etc., without
disturbing paperwork)
A. Dust and place furniture in correct locations A
GC Conference Floors A. Vacuum
B. Vacuum entire carpeted area including under/around furniture C. Shampoo, extract traffic carpet areas

A B C
GC Conference Doors, windows, ledges, ceilings, and
walls
A. Remove all marks and cobwebs as needed
B. Clean HVAC vent and ceiling tiles as needed
A B
GC Conference Light switches and door handles A. Dust and disinfect A

GC Entry, Lobby,
Common
Wastebaskets/Trash A. Empty/clean/reline trash, recycling and organics receptacles; B. Wash and disinfect receptacles (interior and exterior) A B
GC Entry, Lobby,
Common
Furniture A. Dust; place in correct locations
B. Vacuum upholstered furniture
A B
GC Entry, Lobby,
Common
Drinking Fountains A. Clean, disinfect, and polish A

5.6 Attachment 2 - Request for Proposals for Citywide Janitorial Services through September 30, 2026, with an option for 36 months of extensions

394

Exhibit A - City of Foster City Janitorial Services Scope of Work 13

Area Item Work Description
Daily
Weekly
Monthly
Quarterly
Semi-Annual
GC Entry, Lobby,
Common
Floors A. Sweep, dust mop all hard floors; vacuum traffic carpeted areas B. Damp/wet mop floors
C. Machine scrub all tile floors
D. Shampoo and extract carpeted floors
A B C
D

GC Entry, Lobby,
Common
Windows and glass doors A. Spot clean all glass
B. Clean interior
C. Clean exterior

A B C
GC Entry, Lobby,
Common
Doors, window ledges, ceilings, and
walls
A. Clean entrance glass doors as needed
B. Remove all marks and cobwebs as needed
A B
GC Entry, Lobby,
Common
Elevator A. Sweep floor; Damp wipe and polish walls and doors A

GC Janitorial,
Mechanical
Closets A. All closets shall be kept clean and neatly arranged. Tools and supplies should be properly stored
A
GC Janitorial,
Mechanical
Mops A. Empty and clean mop buckets. Sanitize mop heads and hang up to dry
A
GC Janitorial,
Mechanical
Trash Cans A. Remove trash, recycling and organics A
GC Janitorial,
Mechanical
Safety Hazards A. Report safety hazards immediately. Keep MSDS records A GC Janitorial,
Mechanical
Floors A. Sweep and mop floors. Change mop heads as needed A GC Janitorial,
Mechanical
Air vents (under 10') and
thresholds
A. Clean A

GC Offices Wastebaskets/Trash A. Empty/clean/reline trash, recycling and organics receptacles B. Wash and disinfect receptacles (interior and exterior) A B
GC Offices Floors A. Sweep, dust mop all hard floors
B. Vacuum carpet
C. Damp/wet mop floors
A
B
C

5.6 Attachment 2 - Request for Proposals for Citywide Janitorial Services through September 30, 2026, with an option for 36 months of extensions

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Exhibit A - City of Foster City Janitorial Services Scope of Work 14

Area Item Work Description
Daily
Weekly
Monthly
Quarterly
Semi-Annual
GC Offices Doors, windows ledges, ceilings, and
walls
A. Remove all marks and cobwebs A
GC Offices Furniture A. Dust; place in correct locations A GC Offices Windows A. Spot clean glass and remove all cobwebs B. Clean interior
C. Clean exterior
A B C

GC Locker (CY/PD) Floors A. Sweep and mop floors A
GC Locker (CY/PD) Wastebaskets/Trash A. Empty/clean/reline trash, recycling and organics receptacles; B. Wash and disinfect receptacles (interior and exterior) A B
GC Locker (CY/PD) Lockers A. Wipe down top of lockers A

LI Restrooms Sinks, toilets, urinals, partitions,
countertops, and plumbing
A. Clean and disinfect A
LI Restrooms Urinal deodorant screens A. Install A
LI Restrooms Floors A. Sweep
B. Damp/Wet mop with warm water and cleaner
C. Machine scrub floors
A B C
LI Restrooms Wastebaskets/Trash A. Empty/clean/reline trash, recycling and organics receptacles B. Wash and disinfect receptacles (interior and exterior) A B
LI Restrooms Walls, doors, and ceilings A. Spot clean; remove fingerprints, smudges, cobwebs, etc. A LI Restrooms Mirrors A. Clean mirrors to be streak free A LI Restrooms Chrome/Stainless (door handles, rails,
etc.)
A. Clean and polish A
LI Restrooms Sanitary Dispensers A. Clean, disinfect, deodorize interior and exterior; empty and replace disposal bags as needed
A
LI Restrooms Paper towel (Staff Restroom only), seat
covers, soap, and toilet paper
dispensers
A. Refill as needed A
LI Restrooms Air Vents (under 10') and thresholds A. Clean A

5.6 Attachment 2 - Request for Proposals for Citywide Janitorial Services through September 30, 2026, with an option for 36 months of extensions

396

Exhibit A - City of Foster City Janitorial Services Scope of Work 15

Area Item Work Description
Daily
Weekly
Monthly
Quarterly
Semi-Annual

LI Lunchroom Sinks, counters, and fixtures A. Clean, sanitize, and polish A LI Lunchroom Wastebaskets/Trash A. Empty/clean/ reline trash, recycling and organics receptacles; B. Wash and disinfect receptacles (interior and exterior) A B
LI Lunchroom Soap and Paper Towel Dispensers A. Refill as needed A LI Lunchroom Cabinets and appliances A. Damp wipe cabinet fronts and pulls, towel dispensers, and appliances (exterior of refrigerator, freezer, stove, microwave, oven, dishwasher)
B. Damp wipe interior of stove, microwave, and oven
A B
LI Lunchroom Walls, doors, and ceilings A. Spot clean; remove fingerprints, smudges, cobwebs, etc. A LI Lunchroom Air Vents (under 10'), thresholds A. Clean A LI Lunchroom Floors A. Vacuum and wet mop
B. Degrease and mop with disinfectant
A B

LI Conference,
Meeting
Wastebaskets/Trash A. Empty/clean/reline trash, recycling and organics receptacles; B. Wash and disinfect receptacles (interior and exterior) A B
LI Conference,
Meeting
Furniture (including desks, chairs,
tables, cabinets, etc., without
disturbing paperwork)
A. Dust and place furniture in correct locations A
LI Conference,
Meeting
Floors A. Vacuum
B. Vacuum entire carpeted area including under/around furniture C. Shampoo, extract traffic carpet areas
A B C
LI Conference,
Meeting
Doors, windows, ledges, ceilings, and
walls
A. Remove all marks and cobwebs as needed
B. Clean HVAC vent and ceiling tiles as needed
A B
LI Conference,
Meeting
Light switches and door handles A. Dust and disinfect A

LI Entry, Lobby,
Common
Wastebaskets/Trash A. Empty/clean/reline trash, recycling and organics receptacles; B. Wash and disinfect receptacles (interior and exterior) A B

5.6 Attachment 2 - Request for Proposals for Citywide Janitorial Services through September 30, 2026, with an option for 36 months of extensions

397

Exhibit A - City of Foster City Janitorial Services Scope of Work 16

Area Item Work Description
Daily
Weekly
Monthly
Quarterly
Semi-Annual
LI Entry, Lobby,
Common
Furniture A. Dust and wiped down with disinfectant; place in correct locations
B. Vacuum upholstered furniture
A B
LI Entry, Lobby,
Common
Drinking Fountains A. Clean, disinfect, and polish A
LI Entry, Lobby,
Common
Floors A. Sweep, dust mop all hard floors; vacuum traffic carpeted areas B. Damp/wet mop floors
C. Machine scrub all tile floors
D. Shampoo and extract carpeted floors
A B C
D

LI Entry, Lobby,
Common
Windows and glass doors A. Spot clean all glass
B. Clean interior
C. Clean exterior

A B C
LI Entry, Lobby,
Common
Doors, window ledges, ceilings, and
walls
A. Clean entrance glass doors as needed
B. Remove all marks and cobwebs as needed
A B

LI Janitorial,
Mechanical
Closets A. All closets shall be kept clean and neatly arranged. Tools and supplies should be properly stored
A
LI Janitorial,
Mechanical
Mops A. Empty and clean mop buckets. Sanitize mop heads and hang up to dry
A
LI Janitorial,
Mechanical
Trash Cans A. Remove trash, recycling and organics A
LI Janitorial,
Mechanical
Safety Hazards A. Report safety hazards immediately. Keep MSDS records A LI Janitorial,
Mechanical
Floors A. Sweep and mop floors. Change mop heads as needed A LI Janitorial,
Mechanical
Air vents (Under 10')and thresholds A. Clean (vacuum/wipe down) A

LI Offices Wastebaskets/Trash A. Empty/clean/reline trash, recycling and organics receptacles B. Wash and disinfect receptacles (interior and exterior) A B
LI Offices Floors A. Vacuum carpet A

5.6 Attachment 2 - Request for Proposals for Citywide Janitorial Services through September 30, 2026, with an option for 36 months of extensions

398

Exhibit A - City of Foster City Janitorial Services Scope of Work 17

Area Item Work Description
Daily
Weekly
Monthly
Quarterly
Semi-Annual
LI Offices Doors, windows ledges, ceilings, and
walls
A. Remove all marks and cobwebs A
LI Offices Furniture A. Dust; place in correct locations A LI Offices Windows A. Spot clean all glass
B. Clean interior
C. Clean exterior

A B C

5.6 Attachment 2 - Request for Proposals for Citywide Janitorial Services through September 30, 2026, with an option for 36 months of extensions

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VENDOR AGREEMENT FOR PRODUCTS AND/OR SERVICES
FOR
[ENTER PROJECT TITLE]

This Agreement is made and entered into as of the _____ day of _______, 20 ___ by and between the City of Foster City hereinafter called "CITY" and _________ hereinafter called "VENDOR".

RECITALS

This Agreement is entered into with reference to the following facts and circumstances:

A. That CITY desires to engage VENDOR to provide a product and/or services to the CITY;

B. That VENDOR is specially trained, experienced and competent to perform and has agreed to provide the product and/or services to the CITY and;

C. That the CITY has elected to engage VENDOR upon the terms and conditions as hereinafter set forth.

1. A. Services. The services to be performed by VENDOR under this Agreement are set forth in Exhibit A, which is, by this reference, incorporated herein and made a part hereof as though it were fully set forth herein.

Performance of the work specified in said Exhibit A is hereby made an obligation of VENDOR under this Agreement, subject to any changes that may be made subsequently hereto upon the mutual written agreement of the said parties.

Where in conflict, the terms of this Agreement supersede and prevail over any terms set forth in Exhibit A.

B. Product. The product to be supplied by VENDOR under this Agreement is set forth in Exhibit A which is, by this reference, incorporated herein and made a part hereof as though it were fully set forth herein.

Timely delivery of the product specified in said Exhibit A is hereby made an obligation of VENDOR under this Agreement, subject to any changes that may be made subsequently hereto upon the mutual written agreement of the said parties.

VENDOR’s obligation to provide the product includes but is not limited to, the provision of all labor, equipment, materials, testing and any other

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required work or services or costs of any type incidental to the supply of the product.

2. Term; Termination. (a) The term of this Agreement shall commence upon the date hereinabove written and shall expire upon the date enumerated in Exhibit A, delivery of the product or completion of performance of services hereunder by VENDOR, whichever date shall first occur.
(b) Notwithstanding the provisions of (a) above, CITY may with or without cause, direct VENDOR to suspend, delay or interrupt services, in whole or in part, for such periods of time as CITY may determine in its sole discretion. (c) CITY may terminate performance of the services under this Agreement in whole, or from time to time in part, for default, should VENDOR commit a material breach of this Agreement, or part thereof, and not cure such breach within ten (10) calendar days of the date of CITY’s written notice to VENDOR demanding such cure, in which case VENDOR shall be liable to CITY for all loss, cost, expense, damage and liability resulting from such breach and termination. (d) CITY may terminate performance of the services under this Agreement in whole, or from time to time in part, for convenience, whenever CITY determines that such termination is in CITY’s best interests, in which case VENDOR shall be entitled to recover its costs expended up to the termination date plus reasonable profit thereon to the termination date as this Agreement would otherwise provide, but may recover no other cost, damage or expense.

VENDOR shall continue its work throughout the course of any dispute, and VENDOR’s failure to continue work during a dispute shall be a material breach of this Agreement.

3. Compensation; Expenses; Payment . CITY shall compensate VENDOR for all products supplied or services performed by VENDOR hereunder as shown in Exhibit B attached hereto and by this reference incorporated herein.

Notwithstanding the foregoing, the combined total of compensation and reimbursement of costs payable hereunder shall not exceed the sum _____________________ ($________________). Invoices for amounts in excess of _____________________ ($________________) shall not be paid unless additional amounts have been approved in advance of supplying the product, performing the services or incurring the costs and expenses by CITY’s City Manager (for contracts less than $50,000) or City Council (for contracts $50 ,000 or more) evidenced by motion duly made and carried and a written contract amendment having been executed.

Compensation and reimbursement of costs and expenses hereunder shall be payable upon VENDOR meeting contract milestones as defined in

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Exhibit B. Billing shall include an itemized statement, briefly describing by task and labor category or cost/expense items billed.

4. Additional Services . In the event CITY desires the delivery of additional products or performance of additional services not otherwise included within Exhibit A, such products or services shall be authorized in advance by CITY’s City Man ager (for contracts less than $50 ,000) or City Coun cil (for contracts $5 0,000 or more) by motion duly made and carried. Such amendment to this Agreement shall include a descr iption of the product to be delivered or services to be performed thereunder, the maximum compensation and reimbursement of costs and expenses payable therefor, the time of performance thereof, and such other matters as the parties deem appropriate. Except to the extent modified by written amendment, all other terms and conditions of this Agreement shall be deemed incorporated in each such amendment.

5. Records. VENDOR shall keep and maintain accurate records of products delivered or of all time expended in performing services and costs and expenses incurred relating thereto. Said records shall be available to CITY for review and copying during regular business hours at VENDOR’s place of business or as otherwise agreed upon by the parties.

6. Authorization. This Agreement becomes effective when endorsed by both parties in the space provided below.

7. Documents. All documents, plans, drawings, renderings, and other papers, or copies thereof, as finally rendered, prepared by VENDOR pursuant to the terms of this Agreement, shall, upon preparation and delivery to CITY, become the property of CITY

8. Relationship of Parties. VENDOR is an independent Contractor and does not act as CITY’s agent in any capacity, whatsoever. VENDOR is not entitled to any benefits that CITY provides to CITY employees, including, without limitation, worker’s compensation benefits or payments, pension benefits, health benefits or insurance benefits. Terms within this Agreement regarding direction apply to and concern the result of the VENDOR’s provision of Services, not the means, methods, or scheduling of the VENDOR’s work. VENDOR shall be solely responsible for the means, methods, techniques, sequences and procedures with respect to its provision of Services under this Agreement. VENDOR shall pay all payroll taxes imposed by any governmental entity and shall pay all other taxes not specifically identified in this Agreement as CITY’s responsibility.

9. Schedule. VENDOR shall adhere to the schedule set forth in Exhibit A; provided, that CITY shall grant reasonable extensions of time for the delivery of products or performance of services occasioned by

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governmental reviews of VENDOR’s work product or other unavoidable delays; provided, further, that such unavoidable delay shall not include strikes, lockouts, work stoppages, or other labor disturbances conducted by, or on behalf of, VENDOR’s officers or employees.

VENDOR acknowledges the importance to CITY of timely delivery of products or services and agrees to put forth its best professional efforts to perform in a manner consistent with that schedule.

10. Force Majeure. Except for defaults of subcontractors at any tier, VENDOR shall not be liable for any excess costs if the failure to perform the Agreement arises from causes beyond the control and without the fault or negligence of VENDOR, including without limitation failure to reasonably mitigate any adverse impacts (Force Majeure) . Force Majeure events include the following:

Acts of God, fires, floods, earthquake, other natural disasters, epidemics and pandemics (other than COVID -19 or variants), abnormal weather conditions beyond the parameters otherwise set forth in this Article, nuclear accidents, strikes, lockouts, freight embargos, interruptions in service by a regulated utility, or governmental statutes or regulations enacted or imposed after the fact (together, “force majeure events”).

[For consideration if applicable:] Any Force Majeure event with a duration in excess of [ TBD by Owner —recommend not less than 30] days entitl es either party to terminate this Agreement with written notice to the other party, without further penalty or compensation.

11. VENDOR’s Liability for Injury to Persons or Damage to Property. a. VENDOR shall be liable for damages arising out of injury to the person and/or damage to City property, City employees, persons designated by City for training, or any other person(s) other than VENDOR’s agents or employees, designated by City for any purpose prior to, during, or subsequent to delivery, installation, acceptance, and use of the Products either at VENDOR’s site or at City’s place of business, provided that the injury or damage was caused by VENDOR’s fault or negligence.
b. VENDOR shall not be liable for damages arising out of or caused by an alteration or an attachment not made or installed by VENDOR, or for damage to alterations or attachments that may result from the normal operation and maintenance of the Products in accordance with the Agreement.

12. Indemnity. To the fullest extent allowed by law, VENDOR hereby agrees to defend, indemnify, and save harmless CITY and Estero Municipal

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Improvement District, its Council, boards, commissions, officers, employees, directors, volunteers and agents, from and against any and all claims, suits, actions liability, loss, damage, expense, injury (including, without limitation, economic harm, injury to or death of any person, including an employee of VENDOR or its Subcontractors), cost (including, without limitation, costs and fees of litigation) of every nature, kind or description, at law or equity, which may be brought against, or suffered or sustained by, CITY or Estero Municipal Improvement District, its Council, boards, commissions, officers, employees , directors, volunteers or agents that arise out of , pertain to, or relate to any negligence, recklessness, or willful misconduct of VENDOR, any Subcontractor , anyone directly or indirectly employed or retained by them, or anyone that they control. In the event one or more defendants is unable to pay its share of defense costs due to bankruptcy or dissolution of the business, the VENDOR shall meet and confer with other parties regarding unpaid defense costs.

The duty of VENDOR to indemnify and save harmless, as set forth herein, shall include the duty to defend as set forth in Section 2778 of the California Civil Code; provided, however, that nothing herein contained shall be construed to require VENDOR to indemnify CITY and Estero Municipal Improvement District, its Council, boards, commissions, officers, employees and agents against any responsibility or liability in contravention of Section 2782 of the California Civil Code.

VENDOR’s responsibility for such defense and indemnity obligations shall survive the termination or completion of this Agreement for the full period of time allowed by law.

The defense and indemnification obligations of this agreement are undertaken in addition to, and shall not in any way be limited by, the insurance obligations contained within this Agreement.

13. Patent, Copyright and Trade Secret Indemnity.

a. VENDOR shall hold City, its officers, agents and employees, harmless from liability of any nature or kind, including costs and expenses, for infringement or use of any copyrighted or uncopyrighted composition, secret process, patented or
unpatented invention, article or appliance furnished or used in connection with the Agreement.
b. VENDOR may be required to furnish a bond to City against any and all loss, damage, costs, expenses, claims and liability for patent, copyright and trade secret infringement.
c. VENDOR, at its own expense, shall defend any action brought against City to the extent that such action is based upon a claim that the Products supplied by VENDOR or the operation of such

5.6 Attachment 2 - Request for Proposals for Citywide Janitorial Services through September 30, 2026, with an option for 36 months of extensions

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6 Updated 1/10/2022

Products pursuant to a current version of VENDOR supplied operating software infringes a patent or copyright or violates a trade secret. VENDOR shall pay those costs and damages finally awarded against City in any such action. Such defense and payment shall be conditioned on the following:
i. That VENDOR shall be notified within a reasonable time in writing by City of any notice of such claim; and
ii. That VENDOR shall have the sole control of the defense of any action on such claim and all negotiations for its settlement or compromise, provided, however, that when principles of
government or public law are involved, City shall have the option to participate in such action at its own expense.
d. Should the Products , or the operation thereof, become, or in VENDOR’s opinion are likely to become, the subject of a claim of infringement of a patent or copyright or a trade secret, City shall permit VENDOR at its option and expense either to procure for City the right to continue using the Products, or to replace or modify the same so that they become non infringing. If none of these options can reasonably be taken, or if the use of such Products by City shall be prevented by injunction, VENDOR agrees to take back such Products and make every reasonable effort to assist City in procuring substitute Products . If, in the sole opinion of City, the return of such infringing Products makes the retention of other Products acquired from VENDOR under the Agreement
impractical, City shall then have the option of terminating the Agreement, or applicable portions thereof, without penalty or termination charge. VENDOR agrees to take back such Products and refund any sums City has paid VENDOR less any reasonable amount for use or damage.
e. VENDOR shall have no liability to City under any provision of this clause with respect to any claim of patent, copyright or trade secret infringement which is based upon.
i. The combination or utilization of Products furnished hereunder with equipment or devices not made or furnished by VENDOR; or
ii. The operation of equipment furnished by VENDOR under the control of any operating software other than, or in addition to, the current version of VENDOR supplied
operating software; or
iii. The modification by City of the equipment of software furnished hereunder; or
iv. The combination or utilization of software furnished hereunder with non-VENDOR supplied software.
f. VENDOR certifies that it has appropriate systems and controls in place to ensure that City funds will not be used in the performance

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of the Agreement for the acquisition, operation or maintenance of computer software in violation of copyright laws.

14. Insurance. Prior to execution of this Agreement, VENDOR shall furnish to CITY Certificates of Insurance showing satisfactory proof that it maintains the insurance required by this Agreement as set forth in EXHIBIT D , Insurance, which are attached and made a part of this Agreement.

VENDOR shall maintain all required insurance throughout the term of this Agreement and as otherwise provided in EXHIBIT D . In the event VENDOR fails to maintain any required insurance, and notwithstanding Paragraph 3 above, CITY may (but is not obligated to) purchase such insurance and deduct or retain premium amounts from any sums due VENDOR under this Agreement (or VENDOR shall promptly reimburse CITY for such expense).

VENDOR shall maintain insurance as required by this Agreement to the fullest amount allowed by law and shall maintain insurance for a minimum of five (5) years following completion of this project or service. In the event VENDOR fails to obtain or maintain completed operations coverage as required by this Agreement, the CITY at its sole discretion may purchase the coverage required and the cost will be paid by VENDOR.

15. WORKERS' COMPENSATION. VENDOR certifies that he is aware of the provisions of the Labor Code of the State of California which require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that Code, and VENDOR certifies that he will comply with such provisions before commencing the performance of the work of this agreement.

16. NON-DISCRIMINATION. The VENDOR will not discriminate against any employee or applicant for employment because of race, color, religion, sex or national origin. The VENDOR will take affirmative action to ensure that applicants are employed and the employees are treated during employment without regard to their race, color, religion, sex or national origin. Such action shall include, but not be limited to the following:
employment, advancement, demotion, transfer, recruitment, or recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. The VENDOR shall at all times be in compliance with the requirements of the Federal Americans With Disabilities Act (Public Law 101- 336) which prohibits discrimination on the basis of disability by public entities. The VENDOR agrees to post in conspicuous places available to employees and applicants for employment any notices provided by the CITY setting forth the provisions of this non-discrimination clause.

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17. Notice. All notices required by this Agreement shall be given to the CITY and VENDOR in writing, by first class mail, postage prepaid, addressed as follows:

CITY: City of Foster City
610 Foster City Boulevard
Foster City, CA 94404-2299
Attention: _____________

VENDOR: Name
Address
City, State, Zip
Attention: _____________
Email Address:_________

18. Non-Assignment. This Agreement is not assignable either in whole or in part.

19. Substitutions. VENDOR may not substitute any Products or Services without City’s advance written consent. VENDOR shall not use any specification in lieu of those contained in the Agreement without City’s advance written consent.

20. Warranty. Unless otherwise specified, the warranties contained in the Agreement begin after acceptance has occurred.

a. VENDOR warrants that all Products and Services furnished hereunder will conform to the requirements of the Agreement (including all descriptions, specifications and drawings made a part hereof). All Products will be merchantable, fit for their intended purposes, free from all defects in materials and workmanship and to the extent not manufactured pursuant to detailed designs furnished by City, free from defects in design. No approval of designs, specifications or other Services furnished by VENDOR shall relieve VENDOR of its obligations under this warranty. b. All warranties, including special warranties specified elsewhere herein, shall inure to City, its successors and assigns, and any users of the Products or Services.

21. Samples.

a. City may require samples of items inspection and specification testing and must be furnished free of expense to City. The samples furnished must be identical in all respects to the products bid and/or specified in the Agreement.

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b. Samples, if not destroyed by tests, may, upon VENDOR’s request made at the time the sample is furnished, be returned at VENDOR’s expense.

22. Newly Manufactured Products. All Products shall be newly manufactured products; used or reconditioned products are prohibited, unless otherwise specified.

23. Packing and Shipment.

a. All Products shall be packed in suitable containers for protection in shipment and storage, and in accordance with applicable specifications. Each container of a multiple container shipment shall be identified to:
i. show the number of the container and the total number of containers in the shipment; and
ii. the number of the container in which the packing sheet has been enclosed.
b. All shipments by VENDOR or its subcontractors must include packing sheets identifying City’s Contract number; item number; quantity and unit of measure; description of the Products shipped; and appropriate evidence of inspection, if required.
c. Shipments must be made as specified in the Agreement , as it may be amended, or otherwise directed in writing by City.

24. Transportation Costs and Other Fees or Expenses. No charge for delivery, drayage, express, parcel post, packing, cartage, insurance, license fees, permits, cost of bonds, or for any other purpose will be paid by City unless expressly authorized by and itemized in the Agreement .

Unless otherwise directed by City in writing, all Products and components thereof shall be delivered f.o.b. Point of Delivery. VENDOR shall select the means and methods of transportation.

25. Inspection, Acceptance and Rejection.

a. VENDOR and its subcontractors shall provide and maintain a quality assurance system acceptable to City covering Products and Services under the Agreement and will tender to City only Products that have been inspected and found to conform to all requirements.

VENDOR will keep records evidencing inspections and their result, and will make these records available to City during the Agreement performance and for three years after final payment. VENDOR shall permit City to review procedures, practices, processes and related documents to determine the acceptability of VENDOR’s quality assurance system or other business practices related to performance of the Agreement.

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b. All Products may be subject to inspection and test by City or its authorized representatives.
c. VENDOR and its subcontractors shall provide all reasonable facilities for the safety and convenience of inspectors at no additional cost to City. VENDOR shall furnish to inspectors all information and data as may be reasonably required to perform their inspection.
d. All Products may be subject to final inspection, test and acceptance by City, notwithstanding any payment or other inspection. e. City shall give written notice of rejection of Products delivered or Services performed within a reasonable time after receipt of such Products or performance of such Services. Such notice of rejection will state the respects in which the items do not substantially conform to their specifications. If City does not provide such notice of rejection within thirty (30) days of delivery, unless otherwise specified in the Agreement, such Products and Services will be deemed to have been accepted. Acceptance shall not be
construed to waive any warranty rights that City might have at law or by express reservation in the Agreement with respect to any nonconformity, or any other rights provided by law.

26. Compliance With Statutes and Regulations . VENDOR covenants that in the performance of the Agreement it will comply with all applicable statutes, rules, regulations and orders of the United States, the State and City, and shall defend, indemnify and hold the City harmless against any loss, cost, damage or liability by reason of VENDOR’s violation of this provision.

27. National Labor Relations Board Certification. VENDOR swears under penalty of perjury that no more than one final, unappealable finding of contempt of court by a federal court has been issued against VENDOR within the immediately preceding two- year period because of VENDOR’s failure to comply with an order of the National Labor Relations Board.

28. Covenant Against Gratuities. VENDOR warrants that no gratuities (in the form of entertainment, gifts, or otherwise) were offered or given by VENDOR, or any agent or representative of VENDOR, to any officer or employee of City with a view toward securing the Agreement or securing favorable treatment with respect to any determinations concerning the performance of the Agreement. For breach or violation of this warranty, City shall have the right to terminate the Agreement, either in whole or in part, and any loss or damage sustained by City in procuring on the open market any items which VENDOR agreed to supply shall be borne and paid for by VENDOR. The rights and remedies of City provided in this clause shall not be exclusive and are in addition to any other rights and remedies provided by law or in equity.

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29. Amendments. This Agreement may be amended or modified only by written agreement signed by both parties.

30. Validity. The invalidity in whole or in part of any provision of this Agreement shall not void or affect the validity of any other provision of this Agreement.

31. Governing Law. This Agreement shall be deemed to have been executed in the County of San Mateo, California. The formation, interpretation and performance of this Agreement shall be governed by the laws of the State of California, excluding its conflict of laws rules. Any suit or action initiated by either party shall be brought in the County of San Mateo, California unless the parties agree otherwise in a written amendment to this Agreement. In the event of litigation between the parties hereto to enforce any provision of the Agreement, the unsuccessful party will pay the reasonable attorney’s fees and expenses of litigation of the successful party.

32. Mediation. Should any dispute arise out of this Agreement, the parties shall meet in mediation and attempt to reach a resolution with the assistance of a mutually acceptable mediator. Neither party shall be permitted to file legal action without first meeting in mediation and making a good faith attempt to reach a mediated resolution. The costs of the mediator, if any, shall be paid equally by the parties. If a mediated settlement is reached neither party shall be deemed the prevailing party for purposes of the settlement and each party shall bear its own legal costs.

33. Conflict of Interest . VENDOR represents and warrants that it presently has no interest, and shall not have any interest, direct or indirect, which would conflict in any manner with the performance of work and services required under this Agreement. Without limitation, VENDOR represents to and agrees with CITY that VENDOR has disclosed any potential conflict of interest, and will have no future conflict of interest, in providing CITY services hereunder, including but not limited to, any interest (financial, share ownership, shared management, shared directors, or reporting responsibilities) VENDOR may presently have, or will have in the future, with respect to any other person or entity (including but not limited to potential VENDORs, consultants, contractors, or regulatory agency) which may have an interest in the subject matter of the Services.

34. Confidentiality. Any information, whether proprietary or not, made known to or discovered by VENDOR during the performance of or in connection with the Agreement for City, will be kept confidential and not be disclosed

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to any other person. VENDOR will immediately notify City in writing if it is requested to disclose any information made known to or discovered by during the performance of or in connection with the Agreement. These confidentiality provisions and limitations shall remain fully effective indefinitely after VENDOR’s completion of the Agreement.

35. Waiver of Default. Waiver of any default by either party to this Agreement shall not be deemed to be waiver of any subsequent default. Waiver or breach of any provision of this Agreement shall not be deemed to be a waiver of any other or subsequent breach, and shall not be construed to be a modification of the terms of this Agreement unless this Agreement is modified as provided below.

36. Entire Agreement. This Agreement, including Exhibits A, B C, D, E and F, comprises the entire Agreement.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed on the date first above written by their respective officers duly authorized in that behalf.

CITY OF FOSTER CITY

Dated: _________________________________ _______________________, City Manager
(for contracts less than $50,000)
[REMOVE signature line if $50,000 or more]

Dated: _________________________________ _______________________, Mayor
(for contracts $50,000 or more)
[REMOVE signature line if less than $50,000]

ATTEST:

Dated: ________________________________ Priscilla Schaus, City Clerk

APPROVED AS TO FORM

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Dated:

Benjamin Stock, City Attorney

VENDOR

Dated:

Type Name & Title of VENDOR Authorized to
Sign

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EXHIBIT A

SCOPE OF WORK and SCHEDULE
FOR
[ENTER PROJECT TITLE]

Scope of Deliverables:

Scope of Services:

Project Schedule

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EXHIBIT B

VENDOR’S FEES and PAYMENT MILESTONES

Summary

Total Contract Services

Itemized Fees

Project Payment Schedule

Milestone Amount of Payment

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EXHIBIT C
ADDITIONAL TERMS and CONDITIONS

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EXHIBIT D

INSURANCE

VENDOR shall provide, in addition to the Certificates of Insurance, original Endorsement affecting the coverages specified in herein on the attached form. No substitute form will be accepted.

This is an Exhibit to, and made a part of and incorporated by reference to the Agreement dated Date of Agreement, by and between Vendor Name, hereinafter referred to as " Vendor”, and the City of Foster City, hereinafter referred to as "City", providing for professional services.

1. Vendor's Duty to Show Proof of Insurance. Vendor, in order to protect City and its Council members, officials, agents, officers, and employees against all claims and liability for death, injury, loss and damage as a result of Vendor 's acts, errors, or omissions in connection with the performance of Vendor's obligations, as required in this Agreement, shall secure and maintain insurance as described below. Vendor shall not perform any work under this Agreement until Vendor has obtained all insurance required under this section and the required certificates of insurance and all required endorsements have been filed with the City 's authorized insurance representative, insurance Tracking Services Inc. (ITS).

Receipt of evidence of insurance that does not comply with all applicable insurance requirements shall not constitute a waiver of the insurance requirements set forth herein. The required documents must be signed by the authorized representative of the insurance company shown on the certificate. Upon request, Vendor shall supply proof that such person is an authorized representative thereof, and is authorized to bind the named underwriter(s) and their company to the coverage, limits and termination provisions shown thereon, Vendor shall promptly deliver to ITS a certificate of insurance, and all required endorsements, with respect to each renewal policy, as necessary to demonstrate the maintenance of the required insurance coverage for the term specified herein. Such certificates and endorsements shall be delivered to ITS prior to the expiration date of any policy and bear a notation evidencing payment of the premium thereof if so requested. Vendor shall immediately pay any deductibles and self -insured retentions under all required insurance policies upon the submission of any claim by Vendor or City as an additional insured.

1.1 Insurance Requirements

Commercial General Liability Insurance

Commercial General Liability Insurance including, but not limited to, Contractual Liability Insurance (specifically concerning the indemnity provisions of this Agreement with the City ), Products-Completed Operations Hazard, liability for slander, false arrest and invasion of privacy arising out of professional services rendered hereunder, Personal Injury (including bodily injury and death), and Property Damage for liability arising out of Vendor's performance of services under this Agreement. The Commercial General Liability insurance shall contain no exclusions or limitation for independent contractors working on the behalf of the named insured. Vendor shall maintain the Products -Completed Operations Hazard coverage for the longest period allowed by law following termination of this Agreement. The amount of said insurance coverage required by this Agreement shall be the policy limits, which shall be at least two million dollars ($2,000,000) each occurrence and four million dollars ($4,000,000) aggregate.

*Please note, the City will require a separate additional insured endorsement for the Commercial General Liability policy, listing the “ City of Foster City , its Council members, officials, agents, officers, and employees”.

[FOR THE FOLLOWING INSURANCE REQUIREMENTS, PLEASE CONSIDER IF EACH IS APPROPRIATE FOR THE SERVICE TO BE PROVIDED AND FOR THE VENDOR. UNCHECK THE CHECKBOX FOR ANY INSURANCE REQUIREMENT THAT IS NOT APPLICABLE.

PLEASE CONTACT THE CITY MANAGER’S OFFICE WITH ANY QUESTIONS.]

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☒ Business Automobile Liability Insurance

Automobile Liability Insurance against claims of Personal Injury (including bodily injury and death) and Property Damage covering any vehicle and/or all owned, leased, hired and non- owned vehicles used in the performance of Services pursuant to this Agreement with coverage equal to the policy limits, which shall be at least two million dollars ($2,000,000) each occurrence.

☒ Workers' Compensation Insurance

VENDOR shall submit written proof that VENDOR is insured against liability for workers' compensation in accordance with the provisions of section 3700 of the California Labor Code.

VENDOR shall require any Sub contractors to provide workers' compensation for all of the Subcontractors' employees, unless the Subcontractor s' employees are covered by the insurance afforded by VENDOR. If any class of employees engaged in work or services performed under this Agreement is not covered by California Labor Code section 3700, VENDOR shall provide and/or require each Subcontractor to provide adequate insurance for the coverage of employees not otherwise covered. Vendor shall also maintain employer's liability insurance with limits of one million dollars ($1,000,000) for bodily injury or disease.

☒ Professional Liability Insurance

Professional Liability (Errors and Omissions) Insurance, for liability arising out of, or in connection with, all negligent acts, errors or omissions in connection with services to be provided under this Agreement, with no exclusion for claims of one insured against another insured, with coverage equal to the policy limits, which shall not be less than five million dollars ($5,000,000) per occurrence and five million dollars ($5,000,000) aggregate.

☒ Installation Floater

Installation Floater, covering the work performed under this Contract, against all risks of direct physical loss. The policy shall cover the Contractor’s labor, materials and equipment, including materials and equipment in transit or away from the project site, to be installed in the existing structure(s). The coverage shall be written for an amount equal to the initial contract amount plus the value of any subsequent change orders, subject to a deductible of not more than [$10,000] payable by Contractor.

☒ Cyber Liability Insurance

Cyber Liability Insurance, covering network risk and cyber liability (including coverage for unauthorized access, failure of security, breach of privacy perils, as well at notification costs and regulatory defense) in an amount of not less than $1,000,000. Such insurance shall be maintained in force at all times during the term of the Contract and for a period of two years thereafter for services completed during the term of the Contract.

1.2 Self-Insured Retention

Any self -insured retentions in excess of $100,000 must be declared on the Certificate of insurance or other documentation provided to City and must be approved by the City Risk Manager.

1.3 Claims-Made Basis Coverage

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If any of the insurance coverages required under this Agreement is written on a claims -made basis,
Vendor, at Vendor's option, shall either (i) maintain said coverage for at least five (5) years following the termination of this Agreement with coverage extending back to the effective date of this Agreement; (ii) purchase an extended reporting period of not less than five (5) years following the termination of this Agreement; or (iii) acquire a full prior acts provision on any renewal or replacement policy.

2. City as Additional Insured

On Vendor's Commercial General Liability and Automobile policies, the City, its Council members, officers, directors, agents, employees, and volunteers, shall be named as additional insured's, but only with respect to liability arising out of the activities of the named insured. Any endorsement shall be provided using one of the following three options: (i) on ISO form CG 20 10 1 1 85; or (ii) on ISO form CG 20 37 10 01 plus either ISO form CG 20 10 10 01 or CG 20 33 10 01; or (iii) on such other forms which provide coverage at least equal to or better than form CG 20 10 1 1 85.

3. Insurance terms and conditions:

3.1 Cancellation of Insurance

The above stated insurance coverages required to be maintained by Vendor shall be maintained until the completion of all of Vendor 's obligations under this Agreement except as otherwise indicated herein. Each insurance policy supplied by Vendor shall not be suspended, voided, cancelled or reduced in coverage or in limits except after ten (10) days written notice by Vendor in the case of non- payment of premiums, or thirty (30) days written notice in all other cases. This notice requirement does not waive the insurance requirements stated herein. Vendor shall immediately obtain replacement coverage for any insurance policy that is terminated, canceled, non-renewed, or whose policy limits have been exhausted or upon insolvency of the insurer that issued the policy.

3.2 All insurance shall be issued by a company or companies admitted to do business in California and listed in the current "Best's Key Rating Guide" publication with a minimum rating of A-; VII Any exception to these requirements must be approved by the City Risk Manager.

3.3 If Vendor is, or becomes during the term of this Agreement, self-insured or a member of a self-insurance pool, Vendor shall provide coverage equivalent to the insurance coverages and endorsements required above. The City will not accept such coverage unless the City determines, in its sole discretion and by written acceptance, that the coverage proposed to be provided by Vendor is equivalent to the above-required coverages.

3.4 For any claims related to the Agreement, the Vendor’s insurance coverage shall be primary insurance coverage at least as broad as ISO CG 20 01 04 13 as respects the City , its officers, officials, employees, and volunteers. Any insurance or self -insurance maintained by the City , its officers, officials, employees, or volunteers shall be excess of the Vendor’s insurance and shall not contribute with it.

3.5 Insurance coverages in the minimum amounts set forth herein shall not be construed to relieve Vendor for any liability, whether within, outside, or in excess of such coverage, and regardless of solvency or insolvency of the insurer that issues the coverage; nor shall it preclude the City from taking such other actions as are available to it under any other provision of this Agreement or otherwise in law.

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3.6 Failure by Vendor to maintain all such insurance in effect at all times required by this Agreement shall be a material breach of this Agreement by Vendor. City , at its sole option, may terminate this Agreement and obtain damages from Vendor resulting from said breach.

Alternatively, City may purchase such required insurance coverage, and without further notice to Vendor, City shall deduct from sums due to Vendor any premiums and associated costs advanced or paid by City for such insurance. If the balance of monies obligated to Vendor pursuant to this Agreement are insufficient to reimburse City for the premiums and any associated costs, Vendor agrees to reimburse City for the premiums and pay for all costs associated with the purchase of said insurance. Any failure by City to take this alternative action shall not relieve Vendor of its obligation to obtain and maintain the insurance coverages required by this Agreement.

3.7 Should any of the required insurance (other than errors and omissions insurance) be provided under a form of coverage that includes a general annual aggregate limit or provides that claims investigation or legal defenses costs be included in such general aggregate limit, such general annual aggregate limit shall be double the occurrence or claims limit specified above.

3.8 City may (but is under no obligation to) secure project -specific insurance, wrap- up insurance, or administer an owner controlled insurance program ("OCIP"), in which case Vendor and its subcontractors shall communicate this fact to their insurance carriers and request that the risk of this project be excluded from their practice policies. Vendor's fees under this Agreement (and the fee of its subcontractor s under subcontractor agreements) shall be reduced by the amount of insurance premiums that may be avoided by Vendor and its subcontractors by virtue of the City's obtaining the project -specific insurance, wrap- up insurance or administering an OCIP, and the exclusion of this project from coverage of Vendor 's and subcontractor s policies.

Construction
Manager and its subcontractor s shall afford City access to their books and records and cooperate with City in verifying the amount of savings realized.

ATTACHED

1. Insurance Coverage Form

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EXHIBIT D
This INSURANCE COVERAGE FORM modifies or documents insurance provided under the following:

Named Insured: Effective Work Date(s):

Description of Work/Locations/Vehicles:

ADDITIONAL INSURED: City of Foster City/Estero Municipal Improvement District (CITY) 610 Foster City Boulevard, Foster City, CA 94404
Attention: _________________________________
Contract Administrator
Endorsement and Certificates of Insurance Required
The Additional Insured, its elected or appointed officers, officials, employees and volunteers are included as insureds with regard to damages and defense of claims arising from: (Check all that apply)
Insurer Policy
No.

General Liability : (a) activities performed by or on behalf of the Named Insured, (b) products and completed operations of the Named Insured, (c) premises owned, leased occupied or used by the Named Insured, and/or (d) permits issued for operations performed by the Named Insured. {Note:

MEETS OR EXCEEDS ISO Form # CG 20 10 11 85}

Auto Liability : the ownership, operation, maintenance, use, loading or unloading of any auto owned, leased, hired or borrowed by the Named Insured, regardless of whether liability is attributable to the Named Insured or a combination of the Named Insured and the Additional Insured, its elected or appointed officers, officials, employees or volunteers.

Other: [Cyber Liability, Installation Floater, etc.]
Certificates of Insurance Required (no endorsement needed) (Check all that apply) Insurer Policy No.

Workers Compensation : work performed by employees of the Named Insured while those employees are engaged in work under the simultaneous directions and control of the Named Insured and the Additional Insured.

Professional Liability:

PRIMARY/NON-CONTRIBUTORY: This insurance is primary and is not additional to or contributing with any other insurance carried by or for the benefit of Additional Insureds.

SEVERABILITY OF INTEREST: The insurance afforded by this policy applies separately to each insured who is seeking coverage or against whom a claim is made or a suit is brought, except with respect to the insurer’s limit of liability.

PROVISIONS REGARDING THE INSURED'S DUTIES AFTER ACCIDENT OR LOSS : Any failure to comply with reporting provisions of the policy shall not affect coverage provided to the Additional Insured, its elected or appointed officers, officials, employees, or volunteers.

CANCELLATION NOTICE. The insurance afforded by this policy shall not be suspended, voided, canceled, reduced in coverage or in limits except after thirty (30) days' prior written notice (ten (10) days if canceled due to non-payment) by regular mail return receipt requested has been given to the Additional Insured. Such notice shall be addressed as shown above.

WAIVER OF SUBROGATION: The insurer(s) named above agree to waive all rights of subrogation against the CITY, its elected or appointed officers, officials, agents, volunteers and employees for losses paid under the terms of this policy which arise fr om work performed by the Named Insured for the CITY.

Nothing herein contained shall vary, alter or extend any provision or condition of the Policy other than as above stated.

SIGNATURE OF INSURER OR AUTHORIZED REPRESENTATIVE OF THE INSURER

I, ___________________________________________________________(print/type name), warrant that I have authority to bind the above-named insurance company and by my signature hereon do so bind this company.

SIGNATURE OF AUTHORIZED REPRESENTATIVE (original signature required)

ORGANIZATION: TITLE:

ADDRESS:

TELEPHONE: ( ) DATE ISSUED:

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EXHIBIT E
SPECIAL TERMS and CONDITIONS

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EXHIBIT F

COVID-19 AMENDMENT/ATTACHMENT
(Vendor Agreement Form)

This COVID-19 Amendment/Attachment amends the Agreement between ____________________ (“City”) and ____________________________ (“Vendor”) dated ___________________________.

1. Definitions
A. The 2019 novel coronavirus and the disease it causes are collectively referred to herein as “COVID-19”.

B. A “COVID-19 Condition” is something attributable to COVID-19 not caused by the Vendor (which for purposes herein includes all subcontractors) and beyond its reasonable control including but not limited to COVID-19 Proclamations and supply chain disruptions due to COVID-19, and other circumstances concerning COVID-19 not caused by the Vendor and which are beyond its reasonable control.

C. A “COVID-19 Proclamation” includes but is not limited to orders, directives and guidance concerning COVID-19 that have been issued, and which may be issued from time to time, by public agencies or regulatory bodies, the CDC or OSHA or Cal/OSHA, including without limitation the Cal/OSHA COVID-19 Prevention Emergency Temporary Standards. Vendor acknowledges that those orders, directives and guidance may require the Project to shut down or otherwise increase the Vendor’s cost or time of performance by calling for things such as social distancing and the use of personal protective equipment. In the event of conflicting COVID-19 Proclamations, the Vendor shall follow the most applicable, restrictive and newest COVID-19 Proclamations.

D. An “Unknown COVID-19 Condition” is a COVID-19 Condition the Vendor did not know about, and reasonably should not have known about, as of the date the Vendor submitted its proposal. The requirements contained in COVID-19 Proclamations issued before submission of a proposal are not Unknown COVID-19 Conditions, and the Vendor will be deemed to have knowledge of those requirements.

E. An “Unknown COVID-19 Cost” is a cost that: (i) is solely attributable to an Unknown COVID-19 Condition; (ii) is reasonable and unavoidable under the circumstances; (iii) is not the result of the Vendor’s failure to comply with the contract documents or a COVID-19 Proclamation; and (iv) is not the result of a subcontractors failure to comply with a COVID-19 Proclamation in connection with the performance of the Services.

2. COVID-19 Conditions and Proposal. Vendor is expected to know and is deemed to have known about COVID-19 Conditions when it submits its proposal, and COVID-19 Conditions must be accounted for in the Vendor’s price and schedule. In order to be

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entitled to any relief from a COVID-19 Condition, the Vendor must demonstrate that the issue, cost or delay is due to an Unknown COVID-19 Condition.

3. Compliance with COVID-19 Proclamations.

A. Vendor shall comply with COVID-19 Proclamations in the performance of the Services, irrespective of when the COVID-19 Proclamations are issued, and as they pertains to performance of the Services. The cost of such compliance is non- compensable, except as otherwise expressly stated herein.

B. Vendor is responsible to ensure that its subcontractors and suppliers comply with COVID-19 Proclamations at all times in connection with the performance of their Services.

4. Delay. The Vendor is entitled to a reasonable time extension for an Unknown COVID-19 Condition. Such time extension is non-compensable.

5. City Directed Suspension. The City may suspend Services due to COVID-19 health concerns, even though the Vendor may be allowed to proceed with the Services based on COVID-19 Proclamations. The City may suspend the Services for its convenience. The Vendor is entitled to a time extension for a City Directed Suspension, and the contract amount will be equitably adjusted if and to the extent Vendor incurs increased costs that are Unknown COVID-19 Costs.

6. Compensation for COVID-19 Costs. City will reimburse the Vendor for Unknown COVID-19 Costs which are not included in the schedule of values.

7. Safe Work Practices. Vendor shall implement safe work practices recommended by CDC or OSHA or Cal/OSHA, which may include, inter alia, screening all employees, subcontractors, or others (“worker(s)”) at all locations where Services are performed for signs and symptoms of COVID-19; adopting staggered work schedules, e.g., providing alternating workdays or extra shifts, to reduce the total number of employees on a site at any given time and to ensure physical distancing; identifying choke points where workers are forced to stand together, such as hallways and elevators, ingress and egress points, break areas, and buses, and implement policies to maintain social distancing; coordinating deliveries in line with the employer's minimal contact and cleaning protocols; and instituting a rigorous housekeeping program to reduce dust levels at all exterior locations. Vendor remains fully responsible for following and complying with changes to recommended safe work practices from time to time.

8. Monitoring and Reporting. City may require the Vendor to actively monitor the health of its workers through temperature checks and questionnaires of major COVID- 19 symptoms, including but not limited to cough, fever above 100.4 degrees Fahrenheit and shortness of breath. Vendor shall immediately report to City any outbreaks of COVID-19 among its workers. The Vendor shall not knowingly allow any worker who has tested positive with COVID-19 to enter a City building. In the event of an outbreak

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or an exposure to COVID-19, the City may impose appropriate mitigation strategies which may be in consultation with the public health officer.

9. Conflicts. In the event of an inconsistency between this COVID-19 Amendment and the Agreement, this Addendum shall control.

IN WITNESS WHEREOF, the City and Vendor have executed this Covid-19 Amendment as of the date set forth above.

VENDOR: CITY:

________________________ ____________________________
Signature Signature

________________________ ______________________________ Print Name & Title Print Name & Title

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1 CITY OF FOSTER CITY PROPOSAL FORM
PROJECT TO BID: CONTRACT PERIOD:

CITY OF FOSTER CITY-JANITORIAL SERVICES October 1, 2024 - September 30, 2026

1. COMPANY NAME

2. CONTRACTOR

LICENSE NUMBER

3. FEDERAL TAX ID NUMBER 4. YEARS IN BUSINESS

5. BILLING ADDRESS 6.CITY 7. STATE/ZIP

8. TELEPHONE 9. FAX 10. EMAIL

11. CONTACT PERSON 12. TITLE

SERVICES AND PRICING
Building/Facility Site Square
Footage
# of Monthly
Services (5
days Per week)
unless noted
Projected Hours
for Annual
Maintenance
Cost per Monthly Service
(including all labor, materials,
and equipment necessary to
perform the work)
Library/Community Center
1000 E. Hillsdale Blvd.
12,255 12 (7 days per
week service)

$
Police Station
1030 E. Hillsdale Blvd.
16,000 12 (7 days per
week service)

$
Fire Administration with EOC
1040 E. Hillsdale Blvd.
2,027 12
$
Council Chambers
620 Foster City Blvd.
13,500 12
$
Current Recreation Center/Sr.

Wing
650 Shell Blvd. (Contingent on
project schedule)
38,702 12 (7 days per
week service)

$
Temporary Recreation
Center
3 classroom + 1 restroom
trailer near 670 Shell Blvd.

TBD 12 (7 days per
week service)

$
The VIBE Teen Center
670 Shell Blvd.
13,044 12 (7 days per
week service)

$
City Hall
610 Foster City Blvd.
44,573 12
EOC (7 days per
week service)

$
Corporation Yard
100 Lincoln Centre Dr.
16,456 12
$

TOTAL FACILITY COSTS
(MONTHLY)

$

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2 CITY OF FOSTER CITY

JANITORIAL SERVICES

Additional Services Hourly Rate- Including Labor and
Equipment
Emergency Call- During Regular Business Hours
(after 5pm Monday-Friday) $

Day Porter Service
$

Emergency Call- Non-Business Hours $

Please list any other qualifications, certifications, training and/or relevant services to be provided below or on additional sheet(s) if necessary.

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3 BIDDER REFERENCES
Please include at least three (3) organizations which can be used as references for performance of similar services. Bidders shall endeavor to include references from public sector agencies.

AGENCY/COMPANY NAME

CONTACT PERSON CONTACT PHONE

DESCRIPTION OF SERVICES

AGENCY/COMPANY NAME

CONTACT PERSON CONTACT PHONE

DESCRIPTION OF SERVICES

AGENCY/COMPANY NAME

CONTACT PERSON CONTACT PHONE

DESCRIPTION OF SERVICES

In accordance with the Request for Proposals, the undersigned declares that the services offered are in accordance with all requirements of the CITY detailed therein. Further, the undersigned declares that he/she is authorized to enter into agreement on behalf of the above-named business and it is hereby understood that the above proposal reflects the cost of services detailed in the specifications.

SIGNATURE

PRINTED NAME DATE

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4 CITY OF FOSTER CITY

JANITORIAL SERVICES

AUTHORIZATION FOR RELEASE OF PERFORMANCE INFORMATION AND WAIVER

I, _______________________, the undersigned, on behalf of ______________________ (this company), do hereby consent and authorize all those companies and government entities listed in my Bid Proposal Form and any other government entity for whom this company has performed professional services, to disclose and release to the City of Foster City, or their representatives, information, records and opinions concerning this company’s design performance. The purpose of this disclosure is to provide references to the City of Foster City. ___________________________ hereby waives any claim it may have against the City of Foster City or any company or entity providing information to the City of Foster City by reason of any information being disclosed or opinions provided regarding the actions or performance of this company.

This authorization for disclosure of information is effective for one year.

This consent or copy of this authorization shall be as valid and effective as the original.

Dated: __________________________________

By: ____________________________________

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5 CITY OF FOSTER CITY

JANITORIAL SERVICES

CERTIFICATE OF INSURABILITY

I hereby certify that as a Bidder to City of Foster City for a contractor services contract. I am fully aware of Insurance Requirements contained in the Contract and by the submission of this Proposal, I hereby assure the City of Foster City that I am able to produce the insurance coverage required should I be selected to be awarded the contract.

Should I be awarded the Contract by the City of Foster City, and then become unable to produce the insurance coverage specified within ten (10) working days, I am fully aware and understand that I may not be considered for further projects by the City of Foster City.

______________________________________
Signature of Applicant

______________________________________
Date

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6 CITY OF FOSTER CITY

JANITORIAL SERVICES

CONTRACT REVIEW STATEMENT

As a Bidder to City of Foster City for a Contractor Services Agreement Contract, I hereby certify that I have reviewed the Contractor Services Agreement (draft version) and have listed any objections them below. The response shall clearly identify if the attached contract is acceptable in all respects including warranty, insurance, and document ownership and retention requirements. If the contract is not acceptable, the response shall identify the unacceptable clauses and shall provide suggested alternate language. General or vague statements or invitations to discuss further are not adequate answers.

I am aware; any objections to the Contractor Services Agreement (draft version) will be considered and included in the City’s evaluation of my firm’s qualifications. I am also aware, if I fail to list any objections to the City’s Contractor Services Agreement (draft version), I will not be allowed to raise any objections later if selected as the most qualified Applicant.

________________________________________
Signature of Applicant

________________________________________
Date

Specific Objections:

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7 CITY OF FOSTER CITY

JANITORIAL SERVICES

NON-COLLUSION DECLARATION
(PUBLIC CONTRACT CODE SECTION 7106)

I, ____________________ declare under penalty of perjury that I am ___________________ (sole owner, partner, president, etc.) of ________________________________(company name), the party making the foregoing bid; that the bid is not made in the interest of, or on behalf of, any undisclosed person, partnership, company, association, organization, or corporation; that the bid is genuine and not collusive or sham; that the bidder has not directly or indirectly induced or solicited any other bidder to put in a false or sham bid, and has not directly or indirectly colluded, conspired, connived, or agreed with any bidder or anyone else to put in a sham bid, or that anyone shall refrain from bidding; that the bidder has not in any manner, directly or indirectly, sought by agreement, communication, or conference with anyone to fix the bid price of the bidder or any other bidder, or to fix any overhead, profit, or cost element of the bid price, or of that of any other bidder, or to secure any advantage against the pub lic body awarding the contract or anyone interested in the proposed contract; that all statements contained in the bid are true; and, further, that the bidder has not, directly or indirectly, submitted his or her bid or paid, and will not pay , any fee to any corporation, partnership, company, association, organization, bid depository, or to any member or agent thereof to effectuate a collusive or sham bid.

I declare under penalty of perjury that the foregoing is true and correct and this was executed on the date show below at _______________________________________, (City, State)

Dated: ____________________________ NAME OF BIDDER: __________________________________

Signature: ___________________________________________

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8 CITY OF FOSTER CITY

JANITORIAL SERVICES

Bid Checklist for Vendors

Cover Letter (1-page) containing at a minimum:

Company name, contact name, address, fax number, and email address Acknowledge receipt of any and all addenda.
1) General Information
a. Description of firm/team
b. Legal company organization; organization chart with names c. List of applicable licenses
2) Team Experience & Qualifications
a. Applicant’s overall reputation, service capabilities and quality as it relates to this project.
b. Briefly describe each team member’s role.
c. Each bidder must provide a list of other cities and towns in Northern California, for which contracts have been completed or are currently in force during the past five (5) years.
d. Identify proposed sub consultants/subcontractors, and your method of sub consultants/subcontractor selection, if applicable.
e. Current workload and ability to proceed promptly.
f. Willingness to abide by the City’s standard form Agreements with few or no objections or changes.
g. Provide statement regarding your assurance that this engagement will not result in a conflict of interest.
h. Relevant factors impacting the quality or value of work. 3) Submit sealed bid to be received by City no later than July 18, 2024. Completed Bid Proposal Form should be in a separate sealed envelope.

Bid submissions should be addressed to:

Kurt Zander
City of Foster City
610 Foster City Boulevard
Foster City, CA 94404

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6 5
8 DATE: July 15, 2024

TO: President and Members of the Estero Municipal Improvement District (EMID) Board of Directors
VIA: Stefan Chatwin, District Manager
Marlene Subhashini, Assistant District Manager

FROM: Andrew Brozyna, Public Works Director/District Engineer Ryan Marquez, Senior Civil Engineer
DEPARTMENT: Public Works
SUBJECT: LIFT STATION 59 EFFLUENT LINE IMPROVEMENTS PROJECT (CIP 455-695) – APPROVAL OF PLANS AND SPECIFICATIONS

AND AUTHORIZATION TO CALL FOR BIDS

RECOMMENDATION
It is recommended that the Board of Directors of the Estero Municipal Improvement District (EMID) adopt the attached resolution approving the Plans and Specifications and authorizing the call for bids for the Lift Station 59 Effluent Line Improvements Project (CIP 455-695).

EXECUTIVE SUMMARY
CIP 455-695 continues EMID’s program of maintaining and upgrading its facilities to ensure their useful and long life. CIP 455-695 involves various improvements to the effluent line from the EMID’s main Pump Station 59 located in the EMID’s Corporation Yard to provide this critical facility with enhanced operational flexibility, flow measurement accuracy and redundancy during repairs.

This project was publicly bid in summer of 2023, receiving one bid, approximately 190% the value of the engineer’s estimate. The sole bid was rejected in June of 2023 with EMID Board direction to further investigate cost savings and then rebid the project. The modified plans and specifications have been prepared by BKF Engineers (BKF) and are

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6 5
8 ready for EMID Board approval. Total funding in the amount of $1.8 million dollars was approved for the project budget with approximately $1.6M unencumbered, ready to be used for construction. Based on the total project estimate of approximately $2M, current funding is not adequate to fully fund the construction phase. However, the Wastewater Enterprise Fund has approximately $3M in projected excess reserve that is available for use to supplement the project budget when awarding this project.

The EMID Board action will allow staff to advertise the project for bidding. Construction is anticipated to take approximately 4 months beginning in the summer of 2025.

BACKGROUND/ANALYSIS
EMID provides wastewater services to the City of Foster City. Due to the City’s flat topography, the existing wastewater system is designed as a network of lift stations that collect and convey sewage from the outer basins to the inner basins. All sewage is ultimately collected at Pump Station 59 and conveyed to the San Mateo Wastewater Treatment Plant (WWTP), which is jointly owned by EMID and the City of San Mateo.

Pump Station 59 is the final and largest capacity station within the EMID’s collection system pumping an average of 2.9 million gallons of wastewater generated by Foster City per day via a single 21-inch force main to the WWTP. CIP 455-695 includes improvements intended to provide this critical facility with enhanced operational flexibility, flow measurement accuracy and reliability, and a bypass system allowing for uninterrupted flow of wastewater during maintenance activities.

At its February 1, 2021 EMID Board meeting, the EMID Board adopted Resolution No. 3557 authorizing a consultant agreement with BKF Engineers for professional engineering services for the Lift Station 59 Effluent Line Improvements Project (CIP 455- 695). At the April 3, 2023 meeting, the EMID board adopted Resolution No. 3715 authorizing call for bids. At the June 20, 2023 meeting, the EMID board rejected the sole bid due to the discrepancy between the Engineer’s Estimate and the sole bid price. Via Resolution No. 3735, the EMID Board then directed staff to further investigate cost savings and then rebid the project.

The modified project scope includes the following improvements:

1. Replacement of the existing ultrasonic effluent flow meter that measures the amount of sewage that flows to the WWTP (no change).

2. Installation of an above ground re-usable temporary bypass at the Pump Station within the Corporation Yard to allow staff to perform maintenance and repairs on the system without shutting down the EMID’s sewage system and interrupting sewage flow to the WWTP. This scope replaces the original permanent underground bypass pipe to a re-usable above ground temporary bypass pipe

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6 5
8 system. This scope reduction is expected to realize approximately $600k in savings.

3. Installation of valves on the exterior manifold to allow for isolating each wet well of the pump station for continued system operation during repairs (no change).

Plans and Specifications for CIP 455-695 are now complete and are ready for re-bidding.

The design of the project was performed by BKF Engineers and subsequent work following the summer of 2023 bid was also performed by BKF Engineers. A copy of the plans and specifications are available for review in the City Council office.

The EMID Board action will allow staff to advertise the project for bidding. Staff anticipates submitting a staff report and resolution for the award of the construction contract to the EMID Board in September of 2024. Due to long lead time for specialty items, groundbreaking activity is anticipated to begin in August 2025 and will take four months.

The project schedule is as follows:

Advertisement July 16 to August 22, 2024
Bid Opening August 22, 2024
Construction Contract Award September 16, 2024
Construction July thru October 2025
Notice of Completion November 2025
CEQA
Categorically Exempt pursuant to CEQA Guidelines Section 15301(b) – Existing Facilities

FISCAL IMPACT
Total funding in the amount of $1.8 million dollars was approved for the project budget.

The Engineer’s Estimate for the construction is approximately $1,400,000.00. The total estimated project cost of $1,923,654 includes design costs, a 15% construction contingency, a 10% construction management estimate, and miscellaneous costs, as shown below.

BUDGET APPROVED
FY 20/21
FY 21/22
Total Approved Budget
$150,000.00
$1,650,000.00
$1,800,000.00

EXPENDITURES
BKF Consultant agreement (Design Services) $116,654.00

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6 5
8 Total Approved Amendments $42,000.00
Engineer's Estimate of Construction $1,400,000.00
Construction Contingency (15%) $210,000.00
Construction Management (10%) $140,000.00
Miscellaneous costs (advertising, production of plans and specs, etc.)
$15,000.00
Total Estimated Project Cost $1,923,654

Staff will return to the EMID Board once the bid opening occurs to ask for any budget increase. There is approximately $3M in excess reserve in the Wastewater Enterprise Fund that can be used to make up any funding gap that may exist after the project bid.

CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Facilities and Infrastructure
ATTACHMENTS:

Attachment 1 – Resolution

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2 1
6 4
RESOLUTION NO.____________

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ESTERO MUNICIPAL

IMPROVEMENT DISTRICT APPROVING THE PLANS AND SPECIFICATIONS, AUTHORIZING THE CALL FOR BIDS FOR THE LIFT STATION 59 EFFLUENT LINE IMPROVEMENTS PROJECT (CIP 455-695) AND FINDING THAT THE PROJECT IS

CATEGORICALLY EXEMPT PURSUANT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) GUIDELINE 15301(B) – EXISTING FACILITIES

ESTERO MUNICIPAL IMPROVEMENT DISTRICT
WHEREAS, Pump Station 59 is a critical EMID facility in need of enhanced operational flexibility, flow measurement accuracy and reliability, and a bypass system allowing for uninterrupted flow of wastewater during repairs and maintenance activities; and
WHEREAS, on February 1, 2021, the Board of Directors adopted Resolution No. 3557 awarding a consultant agreement for professional engineering services to BKF Engineers for the Lift Station 59 Effluent Line Improvements Project (Project) (CIP 455- 695); and
WHEREAS, the project was publicly bid in summer of 2023, receiving one bid, approximately 190% the value of the engineer’s estimate; and, WHEREAS, the Board of Directors rejected the sole bid in June 2023, directing staff to further investigate cost savings, then rebid the project; and WHEREAS, Plans and Specifications for Lift Station 59 Effluent Line Improvements Project (CIP 455-695) have been modified and ready for bid; and WHEREAS, this Project is categorically exempt pursuant to CEQA Guidelines Section 15301(b) – Existing Facilities; and
WHEREAS, total funding in the amount of $1,800,000 was approved for CIP 455- 695 project budget; and
WHEREAS, based on the Engineer’s Estimate, adequate funding may not be available to fully fund the construction; however, there is approximately $3M in excess reserve in the Wastewater Enterprise Fund that can be used to make up any funding gap that may exist after the project bid.

NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of the Estero Municipal Improvement District does hereby approve the plans and specifications and authorize the call for bids for the Lift Station 59 Effluent Line Improvements Project (CIP 455-695).

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2 1
6 4
PASSED AND ADOPTED as a resolution of the Board of Directors of the Estero Municipal Improvement District at the regular meeting held on the 15th day of July, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

PATRICK SULLIVAN, PRESIDENT
ATTEST:

PRISCILLA SCHAUS, DISTRICT SECRETARY

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DATE: July 15, 2024

TO: Mayor and Members of the City Council
VIA: Stefan Chatwin, City Manager
Marlene Subhashini, Assistant City Manager

FROM: Andrew Brozyna, Public Works Director
DEPARTMENT: Public Works
SUBJECT: REVIEW AND ACCEPT THE INDEPENDENT CITIZENS’ BOND OVERSIGHT COMMITTEE’S FY 2023-2024 AND FINAL REPORT

TO THE CITY COUNCIL REGARDING THE EXPENDITURES OF

BOND PROCEEDS ASSOCIATED WITH THE LEVEE

PROTECTION PLANNING AND IMPROVEMENTS PROJECT (CIP
327-657)

RECOMMENDATION
It is recommended that the City Council review and accept by minute order the Independent Citizens’ Bond Oversight Committee’s (Committee) FY 2023-2024 and Final Report to the City Council regarding the expenditures of bond proceeds associated with the Levee Protection Planning and Improvements Project (CIP 327- 657) from July 1, 2023 through the third quarter of FY 2023-2024.

EXECUTIVE SUMMARY
At its last meeting on April 25th, 2024, and following review of the Levee Project expenditure reports for the 2023-2024 fiscal year through the third quarter, the Committee found that the expenditures are in compliance with the requirements of Measure P.

BACKGROUND/ANALYSIS
On June 5, 2018, Foster City voters passed Measure P, authorizing the City to issue general obligation bonds in the amount of $90,000,000 to fund improvements to the City’s

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levee system. The Measure P Election was conducted under California Government Code Section 53411.The bond measure ballot language promised voters that the expenditure of bond funds would be subject to “citizens’ oversight,” as more fully articulated in City Resolution No. 2018-15 (Attachment 1), which declared the public interest in and necessity of the levee improvements.

Beginning on October 28, 2020, the Committee has met quarterly to review and discuss information pertaining to the Levee project expenditures:

1. At the November 15, 2021 Council Meeting, the Committee presented the 2020- 2021 Fiscal Year Annual Report expenditures from September 2015 through June 30, 2021.

2. At the November 21, 2022 City Council meeting, the Committee presented the 2021-2022 Fiscal Year Annual Report expenditures from July 1, 2021 through September 30, 2022.

3. At the October 2, 2023 City Council meeting, the Committee presented the 2022- 2023 Fiscal Year Annual Report expenditures from July 1, 2022 through June 30, 2023.

The report for City Council’s consideration presented at the July 15th City Council meeting includes the 2023-2024 Fiscal Year Annual Report expenditures from July 1, 2023 through March 31, 2024.The report does cover the entire fiscal year due to the bond proceeds being expended in the third quarter of FY 2023-2024.

On April 25, 2024, the Committee held its quarterly meeting to review the City’s expenditure of bond proceeds and to consider approval of the Final Report to the City Council, which is one of the duties of the Committee described in section 3.3(a) of the Committee’s Bylaws. As the fourth and final Annual Report of the Committee, this report addresses expenditures from July 1, 2023 through the third quarter of FY 2023-2024, during which the bond proceeds were fully expended. The Final Report was reviewed and approved unanimously by the members of the Committee. As indicated in the Final Report, the Committee determined that the City expended bond proceeds only for the purposes set forth in Measure P. The Annual Report is attached as Attachment 2 and will be placed on the City’s website.

The Committee automatically terminates and disbands concurrently with the Committee’s submission of its final Bi-Annual Report, which reflects the final accounting of the expenditure of all bond proceeds. With the completion of the final report, the Committee has terminated.

CEQA
Review and acceptance of the Independent Citizens’ Bond Oversight Committee’s (Committee) FY 2023-2024 and Final Report is not subject to review under the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21000, et seq. and the CEQA Guidelines (14 Cal. Code Regs. §§ 15000 et.

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seq.), including without limitation, Public Resources Code section 21065 and California Code of Regulations 15378 as this is not a “project” that may cause a direct, or reasonably foreseeable indirect, physical change in the environment.

FISCAL IMPACT
There is no fiscal impact associated with the attached report.

CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Facilities and Infrastructure
ATTACHMENTS:

Attachment 1 – City Resolution No. 2018-15
Attachment 2 – Independent Citizens’ Bond Oversight Committee’s Final Report for FY 2023-2024

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5.8 Attachment 1 - City Resolution No. 2018-15

442

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INDEPENDENT CITIZEN’S BOND OVERSIGHT COMMITTEE

FINAL REPORT

RELATED TO MEASURE P

I. INTRODUCTION

The City of Foster City voters passed Measure P on the June 5, 2018 ballot, which authorizes the City to issue $90,000,000 aggregate principal amount of general obligation bonds to fund improvements to the City’s Levee system. As a result of Measure P, the City has issued $90,000,000 in bonds to date. The Levee improvements will allow Foster City to maintain FEMA accreditation and also protect essential city services during storms or earthquake damage. The Measure P Election was conducted under California Government Code Section 53411. Pursuant to Section 2 of the City Resolution No. 2018- 15 of the City Council of the City of Foster City, the City is obligated to establish a citizens’ oversight committee to review all expenditures of the bond proceeds. Section 2, Fiscal Accountability, reads as follows:

The expenditure of bond proceeds to construct the levee system improvements will be subject to strict financial accountability requirements, including review of all expenditures of bond proceeds by a citizens’ oversight committee, and annual reports pursuant to Government Code Section 53411. The citizens’ oversight committee, composed of citizens appointed by the City Council, will ensure the bond proceeds are spent for their authorized purposes, and meet at least two times per calendar year and will submit at minimum two times a year a written report to the City Council and the public on the bond expenditures.

At the December 16, 2019 City Council meeting, the City Council of the City of Foster City established the Independent Citizens’ Bond Oversight Committee and Bylaws were adopted. The Bylaws specify the Committee’s purview within Section 3. Duties and Section 4. Authorized Activities, respectively as follows:

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3.1 Inform the Public. The Committee shall inform the public concerning the City’s expenditure of bond proceeds. In fulfilling this duty, all official communications to either the City Council or the public shall come from the Chair acting on behalf of the Committee. The Chair shall only release information that reflects the majority view of the Committee.

3.2 Review Expenditures. The Committee shall review expenditure reports produced by the City to ensure that bond proceeds were expended only for the purposes set forth in Measure P.

3.3 Bi-Annual Reports. The Committee may, from time to time and on an as -needed basis, submit written reports to the City Council, which the Council shall review in public session. Additionally, the Committee shall present to the City Council, in public session, at least two written reports annually, which shall include the following:

a) A statement indicating whether the City is in compliance with the requirements of Measure P; and
b) A summary of the Committee’s proceedings and activities since its last report to the Council.

4.1 In order to perform the duties set forth in Section 3, the Committee may engage in the following authorized activities:

a) Receive copies of the City’s annual independent performance audit and annual independent financial audit (“Audits”) at the same time Audits are submitted to the City and review the Audits.
b) Inspect City facilities and property where bond proceeds have been or will be expended, in accordance with any access procedure established by the City’s Public Works Director or designee.
c) Review efforts by the City to maximize bond proceeds by implementing various cost-saving measures, as applicable.

II. CURRENT MEMBERSHIP OF THE INDEPENDENT CITIZEN’S OVERSIGHT

COMMITTEE

Ken Ludlum, Chairperson
Al DeGroot, Vice-Chairperson

Bhavanishankar Subramaniam, Member

III. SUMMARY OF PROCEEDINGS AND ACTIVITIES

The Independent Citizens’ Bond Oversight Committee has met quarterly to review and discuss information pertaining to the Levee Project expenditures. Below is a summary of

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the Committee’s proceedings and activities since the last annual report approved at the July 27, 2023 Committee meeting.

Meeting Date Summary
October 26, 2023 Review and discussion of the First Quarterly Report and Expenditures for FY 2023/2024

January 25, 2024 Review and discussion of the Second Quarterly Report and Expenditures for FY 2023/2024.

April 25, 2024 Review and discussion of the Third Quarterly Report and Expenditures for FY 2023/2024.

Approved the Final Report to City Council.

Each meeting has been conducted in compliance with the Brown Act. The meetings have been open to the public and formally scheduled with agendas duly posted and noticed.

Meeting minutes have been taken, approved and posted on the City’s webpage. In addition, individual committee members have taken the opportunity to visit the project site to view progress.

IV. STATEMENT OF COMPLIANCE
The members of the Bond Oversight Committee have reviewed the expenditure reports produced by the City for the 2023-2024 fiscal year through the third Quarter of 2024. The Bond Oversight Committee finds that the expenditures are in compliance with the requirements of Measure P. This Report does reflect the final accounting of the expenditure of all the Bond proceeds. In accordance with Section 10 of the Independent Citizens’ Bond Oversight Committee Bylaws, the Bond Oversight Committee will automatically terminate and disband concurrently with the Committee’s submission of its final Report which reflects the final accounting of the expenditure of all Bond proceeds.

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DATE: July 15, 2024
TO: Mayor and Members of the City Council
VIA: Stefan Chatwin, City Manager
FROM: Marlene Subhashini, Assistant City Manager
Sofia Mangalam, Community Development Director
Waqas Hassan, Assistant Finance Director
Priscilla Schaus, Communications Director/City Clerk
SUBJECT: PLACING A MEASURE ON THE NOVEMBER 5, 2024, GENERAL

MUNICIPAL ELECTION BALLOT AMENDING THE BUSINESS

LICENSE TAX

RECOMMENDATION
It is recommended that the City Council take the following actions:

1. Review and discuss the proposed three (3) models per Council’s direction at the May 20, 2024, Council meeting, and a fourth alternative model related to the Business License Tax (BLT) increase, and select a preferred model; and

2. Adopt a Resolution of the City Council of the City of Foster City ordering the submission to the qualified voters of the City at the general municipal election to be held on November 5, 2024, a measure to amend certain sections in Chapters

5.04, 5.08 and 5.24 within Title 5 of Foster City Municipal Code based on the selected model; authorizing the submittal of ballot arguments in favor of or against the measure; providing for rebuttal arguments; and directing the City Attorney to prepare an impartial analysis.

EXECUTIVE SUMMARY
On May 20, 2024, staff presented a report on potential update to the City’s Business License Tax (BLT), including various models for BLT update, and sought policy direction from the City Council on the following:
a. The preferred Business License Tax model;
b. Whether to consider phasing the maximum tax increase over a three (3) year period for the preferred model;

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c. Whether to keep or eliminate the current Foster City Municipal Code (FCMC) exemption provision related to multiple corporate entities; and d. Whether to proceed with a potential ballot measure to increase the Business License Tax for the November 2024 General Election.

After deliberation, the City Council, by Minute Order No. 1977, directed staff to “develop three (3) variations of the BLT models that will retain the minimum tax of $100 ($200 for General Contractors), have a maximum tax of $500,000, and have fixed gross receipt rates of $0.75 per thousand, $1.00 per thousand, and $1.25 per thousand.” Additionally, the Council directed that the maximum tax increase be phased in over a three-year period, with both the minimum tax and maximum tax adjusted annually for inflation based on the local Consumer Price Index (CPI); and keeping the current FCMC exemption provision related to multiple corporate entities.

To qualify for the ballot, 2/3 of the City Council (4 members) are required to vote affirmatively to place the measure on the ballot. If so, approved by the Council, and then passed by a majority of voters (50% plus 1) on Tuesday, November 5, 2024, the ordinance would go into effect ten days after the certification of the election by the Council.

Per Council’s direction, staff and the consultant have prepared the three (3) BLT models for Council consideration. In addition, staff has also included an alternative model 4X-2 (previously presented at the May 20 th meeting) based on the feedback received during the stakeholder outreach for Council reconsideration.

A resolution with corresponding ballot language and a draft ordinance have been prepared for each of the three models including the fourth alternative model (Attachments 1 through 4). The selected model via an Ordinance would amend Title 5, Business Licenses and Regulations, of Foster City Municipal Code.

BACKGROUND
Current BLT Structure
The City of Foster City's BLT Ordinance was enacted in 1972, shortly after the City's incorporation. The City of Foster City requires all businesses operating within the City of Foster City to obtain a business license and pay associated taxes in accordance with Title 5 – Business Licenses and Regulation of the Foster City Municipal Code. It wasn’t until four decades later (in 2013) that the BLT Ordinance was amended, and a ballot measure (Measure U) to increase the BLT was approved by the Foster City voters. Chapters 5.04 to

5.40 of FCMC Title 5 set forth the provisions of the City's current BLT. All businesses, trades, professions, and occupations specified in the FCMC are subject to a BLT when there is sufficient evidence that business is being conducted in the City. Nonprofit Organizations as defined under Section 501(c)(3) of the United States Internal Revenue Code and Farmers Markets approved by the city are exempt from BLT. In addition, any business exempt under Federal or State law is also exempt from paying the BLT.

The current BLT is based on gross receipts with a single tax rate of $0.75 per $1000 of gross receipts, with a minimum tax of $100 ($200 for General Contractors) and a maximum

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tax ($28,597 for the FY 2023 licensing period). Under the current structure, a business has to gross more than approximately $38 million to hit the gross receipts cap and pay the maximum tax. Generally, single-rate gross receipt tax structures allow the City to capture all gross receipts generated locally and tie the City to the economic growth of the business community.

The Financial Challenge
On June 17, 2024, the City Council adopted the FY 2024-25 Budget. The FY 2024-25 Budget and 5-Year Financial Plan reflect ongoing General Fund structural deficits as budgeted annual expenditures, including transfers out to the City’s CIP Fund exceed estimated annual revenues. Based on the Financial Plan, the current and next fiscal years’ anticipated deficits are $5.58 million and $6.62 million respectively (around $40 million in the five-year period). While the City anticipates continued volatility in its various revenue streams, it is also committed to maintaining existing service levels and prudent General Fund reserve levels to protect the City's long-term fiscal sustainability. The BLT increase was identified as one potential revenue enhancement option that would help with addressing the deficit. Potential additional revenues generated from the proposed BLT increase range from $900,000 to $1.9 million annually depending on the model.

Initiation of BLT update discussion
As discussed, the City is anticipating ongoing structural deficits in its budget over the next five years. A structural deficit is a condition whereby annual ongoing expenditures exceed ongoing revenues. In other words, there are insufficient revenues to pay for the cost of operations and services provided to the community. In recognition of the fiscal challenges facing the City and the City‘s commitment to provide uninterrupted services to the community, the City Council directed staff to consider an update to the City’s BLT as a potential revenue enhancement option in 2022. Although progress was made on the BLT update in 2022, those efforts were put on hold. In 2023, one of the goals that the City Council adopted at its Vision & Policy Summit was to “Identify new revenue sources and strengthen existing resources to ensure Foster City finances are more resilient to economic fluctuations and support city services.” Under this goal, two (2) measures/initiatives were identified including:
•Initiate and engage in ongoing dialogue with City businesses to build strong relationships and assess their needs and understand their perspectives on a BLT ballot measure. •Research BLT methodologies and consider feasibility of various methodologies (e.g., gross receipts, square footage, employee count) with presentation to Council in January 2024.

The City Council reaffirmed this initiative as a key priority at its 2024 Vision & Policy Summit.

A project team comprised of staff from various City departments and consultants was assembled to begin work on this initiative. Staff presented reports to Council on October 16, 2023 (link), December 18, 2023 (link) and February 16, 2024 (link), where staff outlined the strategy for amending the BLT Ordinance and revising the BLT rate, discussed steps leading to the potential ballot measure in the November 2024 General Election, provided preliminary analysis of the City’s current BLT structure, shared pros and cons of the various BLT structures and provided a comparison to other cities’ BLT structure. Following the

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Council meetings, the project team began to explore potential BLT models that could generate additional revenue while meeting the City’s goals, with the last meeting on the topic on May 20, 2024 (link).

May 20, 2024, City Council Meeting
At the meeting, staff presented a detailed report including information on the following:
•General Overview of Business License Tax, discussing key points of comparison (pros and cons) for the various BLT Methodologies/Types of Measurements. •An analysis of the current BLT structure (Single Rate Gross Receipts Tax). •Comparison of city’s current BLT structure to other cities. •Initial models that were developed, including:
oModel 1: Increase In Current Maximum Tax
oModel 2: Gross Receipts Tax – Single Gross Receipts Rate oModel 3: Gross Receipts Tax – Classifications-Based Rate oModel 4: Tiered Gross Receipts
oModel 5: Uniform Employee Tax Rate
•Preferred Model 4 and variations of Model 4 for Council’s consideration. •Summary of feedback received through Community Engagement efforts, Business Stakeholder outreach, Public Polling, Surveys, Town Halls, etc.

ANALYSIS
At the May 20, 2024, City Council Meeting, the Council received the report on the BLT update and by Minute Order No. 1977, directed staff to:

1. Develop three (3) variations of the BLT models that retain the minimum tax of $100 ($200 for General Contractors), have a maximum tax of $500,000, and have fixed gross receipt rates of $0.75 per thousand (current rate), $1.00 per thousand, and $1.25 per thousand.

2. Phasing the maximum tax increase of $500,000 over a three-year period, with both the minimum tax and maximum tax adjusted annually for inflation based on the local Consumer Price Index (CPI); and

3. Keep the current Foster City Municipal Code (FCMC) exemption provision related to multiple corporate entities.

BLT Models per Council’s Direction:

The following tables include the three variations of the BLT models as directed by the City Council at the May 20, 2024 City Council meeting.

Model maintaining the current rate of $0.75 per $1000 of gross receipts with a maximum tax payment of $500K with estimated additional annual revenue potential of $891,703.

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Measure

Lower
Bounds
of Gross
Receipts
Upper
Bounds
of Gross
Receipts
Gross
Receipt Tax
Rate Min Tax
Total
Estimated
Annual
Gross
Receipts
Total
Estimated
Annual Tax
0 - All Other
Businesses $133,500 $100.00 19,638,000 82,500
0 - General
Contractors
$0
$267,000
$0.00
$200.00 15,917,000 76,800
1 - All Other
Businesses Greater than $133,500 $100.00 4,294,421,000 2,452,480 1 - General
Contractors Greater than $267,000
$0.75
$200.00 147,492,000 110,603
$ 2,722,383
Example: If a business reports $50,000,000 in annual gross receipts, its annual maximum business license tax will be as follows:
$100 (min. up to $133,500 gross receipts) + $37,399.88 ($0.75/$1,000 over $133,500 of gross receipts) = $37,499.88
Model $1.00 rate (25 cents increase) per $1000 of gross receipts with a maximum tax payment of $500K with estimated additional annual revenue potential of $1,395,898.

Measure

Lower
Bounds of
Gross
Receipts
Upper
Bounds
of Gross
Receipts
Gross
Receipt
Tax Rate Min Tax
Total
Estimated
Annual
Gross
Receipts
Total
Estimated
Annual
Tax
0 - All Other
Businesses $133,500 $100.00 19,638,000 82,500
0 - General
Contractors
$0
$267,000
$0.00
$200.00 15,917,000 76,800
1 - All Other
Businesses Greater than $133,500 $100.00 4,294,421,000 2,924,141 1 - General
Contractors Greater than $267,000
$1.00
$200.00 147,492,000 143,137
$3,226,578
Example: If a business reports $50,000,000 in annual gross receipts, its annual maximum business license tax will be as follows:
$100 (min. up to $133,500 gross receipts) + $49,866.50 ($1.00/$1,000 over $133,500 of gross receipts) = $49,966.50
Model $1.25 rate (50 cents increase) per $1,000 of gross receipts with a maximum tax payment of $500K with estimated additional annual revenue potential of $1,900,092.

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Measure
Lower
Bounds
of Gross
Receipts
Upper
Bound of
Gross
Receipts
Gross
Receipt
Rate Min Tax
Total
Estimated
Annual
Gross
Receipts
Total
Estimated
Annual
Tax
0 - All Other
Businesses $133,500 $100.00 19,638,000 82,500
0 - General
Contractors
$0
$267,000
$0.00
$200.00 15,917,000 76,800
1 - All Other
Businesses Greater than $133,500 $100.00 4,294,421,000 3,395,801 1 - General
Contractors Greater than $267,000
$1.25
$200.00 147,492,000 175,671
$3,730,772
Example: If a business reports $50,000,000 in annual gross receipts, its annual maximum business license tax will be as follows:
$100 (min. up to $133,500 gross receipts) + $62,333.13 ($1.25/$1,000 over $133,500 of gross receipts) = $62,433.13
In all the three models presented above, the maximum tax payment of $500K will be phased in over three years as follows:
•Effective January 1, 2025, the maximum tax payment will be two hundred and fifty thousand dollars ($250,000)
•Effective January 1, 2026, the maximum tax payment will be three hundred and fifty thousand dollars ($350,000)
•Effective January 1, 2027, and thereafter, the maximum tax payment will be five hundred thousand dollars ($500,000)
•Effective January 1, 2028, and annually thereafter the maximum tax payment from the previous year will be increased based on inflation (CPI).

This means that the annual total revenues projected from the models and as shown in the tables above, will vary each year based on the maximum tax payments for that year. In addition, in the three models presented above, it is important to note that only the very large businesses that gross over approximately $666 million for $.75/$1,000 model, $500 million for $1.00/$1,000 model and $400 million for $1.25/$1,000 model in annual gross receipts would be subject to the maximum tax of $500K. This is approximately 8-10 businesses (less than 5%) of the total number of 1,651 businesses in Foster City.

In addition, per the Council’s direction, the minimum tax payment of $100/$200 will be increased annually commencing on January 1, 2026 by inflation (CPI) and the maximum tax payment of $500K will be increased annually commencing on January 1, 2028 by CPI.

Alternative Model
Following the May 20, 2024, Council meeting, a second series of outreach meetings were held to share the proposed variations of BLT models directed by the City Council with the business stakeholders. Some businesses expressed concerns about the significant increase in tax liability with the new $500,000 maximum tax. One of the businesses highlighted the struggling office market and the potential for increased vacancies and noted

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that most companies are currently focused on cost containment, and any further increase in costs, such as through business license taxes, would be a significant burden. They expressed potential impact on the city's revenues if companies decide to leave the City due to the increased taxes.

Based on the concerns and feedback received on the $500,000 maximum tax and the business survey results, staff is including a fourth alternative model (Model 4X-2) that was previously presented at the May 20th meeting for Council reconsideration.

Model 4X-2 is a tiered rate structure that involves a tax rate that increases (or progresses) as taxable gross receipts increase. It imposes a lower tax rate on businesses that report lower taxable gross receipts and a higher tax rate on those businesses that report higher taxable gross receipts.

1. Alternative model (Model 4X-2) includes a tiered gross receipts rate structure of $0.75 to $3.00 rate with a maximum tax of $250K with estimated additional annual revenue potential of $1,451,981.

Example: If a business reports $50,000,000 in annual gross receipts, its annual maximum business license tax will be as follows:
$26,474.88 (min. up to $25,000,000 gross receipts) + $75,000 ($3.00/$1,000 over $25,000,000 of gross receipts) = $101,474.88
In addition to lowering the maximum tax payment to $250K, which was somewhat palatable to the large businesses when compared to the maximum tax of $500K, this model also achieves the following objectives:
•Updates the 75 cents rate which has remained the same since the Ordinance was first adopted in 1972 to a modern progressive rate structure that is equitable, and fair based on the size of the business.
•A modest increase to the gross receipt rate for middle to large businesses. •Creating tiers so that medium to large businesses pay a lower rate (share of the overall BLT) than the largest businesses.

COMMUNICATION AND OUTREACH

Lower
Bounds of
Gross
Receipts
Upper
Bounds of
Gross
Receipts
Gross
Receipt
Rate
General
Contractors
Min Tax
All Other
Businesses
Min Tax
Total
Estimated
Annual
Gross
Receipts
Total
Estimated
Annual
Tax
$0 $133,500 $0.00 $200.00 $100.00 28,917,000 152,300
$133,500 $4,400,000 $0.75 $200.00 $100.00 327,707,000 254,732 $4,400,000 $8,500,000 $0.88 $3,399.88 $3,299.88 231,863,000 182,125 $8,500,000 $12,650,000 $1.00 $6,987.38 $6,887.38 150,644,000 128,067 $12,650,000 $16,750,000 $1.13 $11,137.38 $11,037.38 161,009,000 146,203 $16,750,000 $20,900,000 $1.25 $15,749.88 $15,649.88 53,290,000 50,850 $20,900,000 $25,000,000 $1.38 $20,937.38 $20,837.38 23,148,000 23,928 $25,000,000 $3.00 $26,574.88 $26,474.88 3,500,890,000 2,344,456 $3,282,661

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To understand the impact on businesses and assess the support for a BLT increase, the project team conducted a robust engagement effort with the community, Chamber of Commerce, local businesses and key stakeholders. This effort included utilizing surveys, 1:1 and group meetings, social media and direct outreach efforts to share information on the City services, City budget, the proposed BLT models. A fiscal sustainability survey was conducted to understand the community’s needs and perspectives on the potential BLT ballot measure for the November 2024 General Election. In addition, a business survey was also administered by the consultant FM3.
•Community Priorities Survey
A Communities Priority Survey asking the community to identify their priorities on public safety, parks, infrastructure, and more was launched in March 2024. Additionally, the City and the consultant leveraged a variety of outreach and engagement channels to share information regarding the measure and collect feedback from community members. These efforts included, but were not limited to: a press release covered in local media outlets; paid social media promotion; printed informational material mailed to residents and local businesses included with utility bills; widespread direct outreach emailed to thousands of local businesses, community organizations and residents; promotion in digital newsletters sent to thousands of community members; flyers distributed at City facilities and public gathering areas; promotion via the City website; and graphics displayed on City digital marquees and posting boards.

The 213 responses to the Community Priority Survey indicated Public Safety issues are top of mind, with respondents placing a “High Priority” on “Maintaining 911 Response Times” (79%), “Helping Prevent Crimes, Thefts and Burglaries” (78%) and “Keeping Public Areas Safe and Clean” (63%).
•Town Hall Events
Three (3) town halls were hosted by staff on May 29, May 30, and July 9. These events were promoted via direct mailer, as well as on the City’s digital marquee and in online and social media announcements.
oIn-person May 29 Townhall: The May 29 meeting was an in-person and had two (2) attendees who asked detailed questions about the construct of the BLT when compared to other cities, and in particular regarding language for apportionment and provisions for firms with multiple entities operating within the City. oVirtual May 30 Townhall: The virtual meeting on May 30 had approximately 18 attendees, predominantly from the local business community. Attendees at this meeting asked questions regarding what other models the City had considered, how the potential changes in BLT would affect small work-from-home businesses and how office leases may pass through any increased costs to the tenants. Some attendees expressed concern regarding the size of the increase for the largest BLT payers.
oHybrid July 9 Townhall: The July 9 meeting was a hybrid. The City and the consultant presented an update on the May 20 th City Council meeting, three (3) BLT models under consideration and an overview of the City’s budget. There were approximately 30 attendees, with participation from both the local business community and general public. Attendees at this meeting raised issues related to the Recreation Center, the potential impacts of a revised BLT on large employers in the City, businesses leaving

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the City, business vacancies, loss of sales tax and how the City planned to more fully address fiscal stability in the future. One participant also sought additional clarity on several aspects of the existing BLT ordinance, including apportionment formulas and impact on businesses with multiple entities.
•Business Stakeholder Outreach
The City conducted in-person and virtual outreach to various sized businesses. Some of these meetings were convened in collaboration with the Foster City Chamber of Commerce. Staff also set up a website allowing individual businesses to schedule briefings with City staff and consultants
Outreach meetings held to date:
oWednesday, May 1, 2024, 2:00 pm in-person meeting (Gilead) oThursday, May 9, 2024, 10:00 am virtual meeting (Chamber of Commerce, multiple businesses)
oThursday, May 9, 2024, 1:00 pm virtual meeting (Visa)
oThursday, May 9, 2024, 2:00 pm in-person meeting (Chamber of Commerce, multiple businesses)
oWednesday, May 15, 2:00 pm virtual meeting (Cowan Capital) oWednesday, May 15, 1:00 pm virtual meeting (PG&E)
oWednesday, May 15, 1:00 pm virtual group meeting (Chamber of Commerce, multiple businesses)
oThursday, May 16, 2024, 2:00pm virtual meeting (Bailard) oThursday, May 16, 2024, 10:00 am virtual meeting (Zoox) oThursday, May 16, 2024, 11:00 am virtual meeting (Sycomp) oWednesday, June 05 phone call (Costco)
oWednesday, June 12, 12:00 pm virtual meeting (Visa)
oWednesday, June 12, 2:00 pm virtual meeting (Hudson Pacific Properties) Feedback/Questions received from businesses prior to the May 20th City council meeting include the following:
•Concerns about the tax increases faced by the multiple entities under the same management in Foster City.
oSuggested limiting taxing multiple entities to avoid paying separately for each entity.
•Questions regarding apportionment. There is language in the existing ordinance regarding apportionment, but some have said they may scrutinize these provisions more closely the higher the levy rises. Some have cautioned they believe the bulk of their receipts/operations are located outside of the City and would impact how they report gross receipts moving forward.
•Smaller business owners have characterized efforts to reduce the relative share of BLT paid by small firms as “fair”, and others even expressed a willingness to pay modest increases to support the City.
•Concerns about the proposed tax increase, questioning how it would address the identified budget deficits, and if the City will continue to move the goal post on businesses by looking at future BLT increases.
•Concerns about the exponential increase affecting the largest firms with consideration to a phased approach (even for $250k maximum tax model). •The increase to the maximum tax is unreasonable.

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•Questions about how the city is funding the remaining gap in the budget. •Sourcing receipts gets complicated, and predictability is important. •If the City has considered the fiscal impact if one or more large businesses leave the City and take their business to a more tax-friendly city. •If the City has considered the loss of sales tax revenue that may potentially be lost if the large businesses leave the City.
•How the revenue numbers were taken into consideration for various models. •Almost all the stakeholders emphasized that they are sympathetic and supportive towards the city’s financial constraints.
•Some small business owners noted that they would not mind paying $200 instead of the minimum $100 tax.
•A small business owner expressed concern about being double taxed, paying for taxes in other places for the same earnings.
•Some small business owners were perplexed with the models presented by staff that showed zero increase to their tax structure as they received certain messages showing that City is increasing taxes ranging from 9x to 17x. •The idea of modernization of tax structure sounds reasonable, large businesses should pay their fair share.
•If the City has taken into considered impact fees, permit fees, and property tax that a large business pays i.e. the cost of doing business in the City. •Some business owners expressed appreciation for all the facilities that the City offers and noted that the proposed increase in tax is completely understandable and is supportive of the same.
•Question regarding the potential impact of city business license fees updates on utility providers.

Feedback/Questions received from Businesses post May 20th City council meeting include the following:
•One of the businesses expressed concerns about the significant increase in tax liability with the new $500,000 maximum tax including expressing concerns that a single business with multiple entities may be subject to 2x or 3x the maximum tax. •Other businesses highlighted the struggling office market and the potential for increased vacancies and noted that most companies are currently focused on cost containment, and any further increase in costs, such as through business license taxes, would be a significant burden. The discussions also focused on the potential impact on the city's revenue if companies chose to leave the City were pushed out due to the increased costs.
•Business Survey
To assess the opinions of businesses currently paying Foster City's BLT, FM3 conducted a Business License Tax Business Survey from June 4 to July 3, 2024. FM3 completed 52 online and telephone interviews with Foster City businesses during this period (invites were sent to 1,889 business contacts).

The results show that businesses widely view Foster City as a good place to do business, and half expect their businesses to grow in the next few years. However, many have reservations about the proposal to update the current BLT, and there is a strong preference to ensure that the majority of businesses currently paying the

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minimum BLT would see no change in what they pay. The results of the survey noted that local businesses like operating in Foster City, plan to continue operation into the future, and many are hoping to grow. Most businesses are familiar with the BLT and find it easy to understand, file, and pay. However, there are mixed opinions on its current fairness and general unfamiliarity with the benefits of paying it. With that background, most businesses surveyed were generally not enthusiastic about a potential update to the BLT currently under consideration. However, support increased modestly when its rationale was presented and was greater for models with a smaller tax rate ($1.00 rather than the $1.25 per $1000 of gross receipts) and maximum tax increases (see Attachment 5 for additional details).

Increasing the Business License Tax Requires a Vote of the People The proposed BLT measure is a general tax. Two actions are required to implement an increase to the BLT when the tax is for general purposes and the proceeds will go to General Fund revenues:

1. Adoption of a resolution placing a measure on the ballot by 2/3 vote of all members of the City Council; and

2. Majority voter approval (Cal. Gov’t Code § 53723 and 53724(b)).

Further, in accordance Article XIIIC, section 2(b) of the California Constitution, the measure must be voted upon at a General Municipal Election in which members of the governing body of the agency are subject to an election, which in Foster City occurs in November of even- numbered years. The submittal deadline for a ballot measure to be included in the November 5, 2024, General Municipal Election is August 9, 2024. Staff is recommending that City Council determine at this meeting whether to place a measure on the ballot for the November 5, 2024 election and if so select which model the Council would like to submit to the voters. The last Council meeting prior to the deadline for submitting measures is August 5, 2024, however, staff does not recommend waiting until that meeting as there may not be sufficient time to process the needed documentation and submit it. If approved by a majority of Foster City voters (50% plus 1) at the November 2024 election, the ordinance would go into effect no earlier than ten (10) days following certification of the election results by the City Council. The legal deadline for the County Elections Official to provide the canvass of the election results is December 5, 2024.

Election certification has historically been done at the first City Council meeting in December. As the certified results may not be ready by the first meeting in December (December 2), a special meeting to certify results would be held on December 9, 2024.

Proposed Amendments to Foster City Municipal Code Title 5, Section I.

Business Licenses Generally
The City’s current BLT Ordinance is found FCMC Title 5, Section I. Business Licenses Generally. In addition to amendments related to gross receipt rates and maximum tax , staff is recommending revisions to the following sections in Chapters 5.04, 5.08, and 5.24 within Title 5:

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5.04.060 Constitutional apportionment.

A.    No Undue Burden. None of the license taxes provided for by this article shall be so applied as to occasion an undue burden upon interstate commerce or to violate the equal protection and due process clauses of the Constitutions of the United States and the state of California. When, by reason of the provisions of the Constitution of the United States or the Constitution of California, the license fee imposed by this chapter cannot be enforced without there being an apportionment according to the amount of business done in the City or in the state, as the case may be, the City Manager or designee shall, in consultation with City Attorney Office, prepare and issue regulations with respect to apportionment and such regulations shall provide adequate notice.

5.08.050 Gross receipts.

As used in this article, “gross receipts”, except as otherwise specifically provided, includes the total amounts attributable to business activity within the city actually received or receivable by a person from all sales of goods, materials, wares or merchandise, and the total amounts actually received or receivable by a person for the performance of any act or service, of whatever nature it may be, for which a charge is made or credit allowed, whether or not such act or service is done as a part of or in connection with the sale of materials, goods, wares or merchandise. Included in “gross receipts” shall be all receipts, cash, credits, investment income, rental income, and proceeds from the sale of property of any kind or nature, without any deduction on account of the cost of the property sold, the cost of materials used, labor or service costs, interest paid or payable, or losses or other expenses whatsoever. The following are excluded from “gross receipts”:

A.A.    Cash discounts allowed and taken on sales;
B. Transactions between a partnership and its partners; C.B.    Credit allowed on property accepted as part of a purchase price and which property may later be sold;
D.C.    Any tax required by law to be and is included in or added to the purchase price and collected from the consumer or purchaser;
E.D.    Such part of the sale price of property returned by purchasers upon rescission of a contract of sale as is refunded either in cash or by credit; F.E.    Amounts collected for others as an agent or trustee to the extent such amounts are paid to those for whom collected, provided the agent or trustee has furnished the collector with the names and addresses of the others and the amounts paid to them;
G.F.    That portion of the receipts of a business related to sales of goods or services to the city of Foster City;
H. G. That portion of the receipts of a general contractor which represents payments to subcontractors; provided, that such subcontractors are licensed under this article and provided the general contractor furnishes the collector with the names and addresses of the subcontractors and the amounts paid each; I. H Receipts of refundable deposits, except that refundable deposits forfeited and taken into income shall not be excluded;
J. I As to a real estate agent or broker, the sales price of real estate sold for the account of others except that portion which represents commission or other income to the agent or broker.”
In addition to the above said edits, definitions for Solicitor (section 5.08.080) and Specialty

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Contractor (section 5.08.090) have been deleted from Chapter 5.08.

Depending on the final model, the section ‘5.24.010 Rates’ would be amended in the respective ordinances as follows:

Model $0.75 rate with $500K maximum tax
Section 5.24.010 would be amended to reflect the model $0.75 rate with $500K maximum tax payment phased in over 3 years and thereafter adjusted for inflation (CPI), as included in the Ordinance. For the redline version, please refer to Attachment 1.

5.24.010 Rates
Every person who engages in business at a fixed place of business within the city shall pay a license tax of seventy-five cents per one thousand dollars (or 0.075 percent) of gross receipts or part thereof up to the maximum tax payment amount set forth in section 5.24.010 B. below:

For purposes of calculating the gross receipts, cents will be rounded up to the nearest dollar.

A. Minimum Tax. The minimum tax shall be as follows:

Effective Date General
Contractor
All Other
Businesses
January 1, 2025, and
thereafter
$200 $100
Effective January 1, 2026, and every January 1st thereafter, the minimum tax payment from the previous year shall be adjusted by the percentage change in the Consumer Price Index (All Urban Consumers) issued by the Bureau of Labor Statistics of the United States Department of Labor for the San Francisco-Oakland-San Jose, California, area (or any successor to that index) for the month of October immediately preceding, rounded to the nearest dollar amount.

B. Maximum Tax Payment. The maximum amount of the tax to be paid is as follows:

1. Effective January 1, 2025, the maximum tax payment will be two hundred and fifty thousand dollars ($250,000).

2. Effective January 1, 2026, the maximum tax payment will be three hundred and fifty thousand dollars ($350,000).

3. Effective January 1, 2027, and thereafter, the maximum tax payment will be five hundred thousand dollars ($500,000).

4. Effective January 1, 2028, and every January 1st thereafter, the maximum tax payment from the previous year shall be adjusted by the percentage change in the Consumer Price

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Index (All Urban Consumers) issued by the Bureau of Labor Statistics of the United States Department of Labor for the San Francisco-Oakland-San Jose, California, area (or any successor to that index) for the month of October immediately preceding, rounded to the nearest thousand dollars.

Model $1.00 rate with $500K maximum tax
Section 5.24.010 would be amended to reflect the model $1.00 rate with $500K maximum tax payment phased in over 3 years and thereafter adjusted for inflation (CPI), as included in the Ordinance. For the redline version, please refer to Attachment 2.

5.24.010 Rates
Every person who engages in business at a fixed place of business within the city shall pay a license tax of one dollar per one thousand dollars (or 0.10 percent) of gross receipts or part thereof up to the maximum tax payment amount set forth in section 5.24.010 B. below:

For purposes of calculating the gross receipts, cents will be rounded up to the nearest dollar.

A. Minimum Tax. The minimum tax shall be as follows:

Effective Date General
Contractor
All Other
Businesses
January 1, 2025,
and thereafter
$200 $100
Effective January 1, 2026, and every January 1st thereafter, the minimum tax payment from the previous year shall be adjusted by the percentage change in the Consumer Price Index (All Urban Consumers) issued by the Bureau of Labor Statistics of the United States Department of Labor for the San Francisco-Oakland-San Jose, California, area (or any successor to that index) for the month of October immediately preceding, rounded to the nearest dollar amount.

B. Maximum Tax Payment. The maximum amount of the tax to be paid is as follows:

1. Effective January 1, 2025, the maximum tax payment will be two hundred and fifty thousand dollars ($250,000)

2. Effective January 1, 2026, the maximum tax payment will be three hundred and fifty thousand dollars ($350,000)

3. Effective January 1, 2027, and thereafter, the maximum tax payment will be five hundred thousand dollars ($500,000).

4. Effective January 1, 2028, and every January 1st thereafter, the maximum tax payment from the previous year shall be adjusted by the percentage change in the Consumer Price Index (All Urban Consumers) issued by the Bureau of Labor Statistics of the United States

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Department of Labor for the San Francisco-Oakland-San Jose, California, area (or any successor to that index) for the month of October immediately preceding, rounded to the nearest thousand dollars.

Model $1.25 rate with $500K maximum tax
Section 5.24.010 would be amended to reflect the model $1.25 rate with $500K maximum tax payment phased in over 3 years and thereafter adjusted for inflation (CPI), as included in the Ordinance. For the redline version, please refer to Attachment 3.

5.24.010 Rates
Every person who engages in business at a fixed place of business within the city shall pay a license tax of one dollar and twenty-five cents per one thousand dollars (or 0.125 percent) of gross receipts or part thereof up to the maximum tax payment amount set forth in section

5.24.010 B. below:

For purposes of calculating the gross receipts, cents will be rounded up to the nearest dollar.

A. Minimum Tax. The minimum tax shall be as follows:

Effective Date General
Contractor
All Other
Businesses
January 1, 2025, and
thereafter
$200 $100
Effective January 1, 2026, and every January 1st thereafter, the minimum tax payment from the previous year shall be adjusted by the percentage change in the Consumer Price Index (All Urban Consumers) issued by the Bureau of Labor Statistics of the United States Department of Labor for the San Francisco-Oakland-San Jose, California, area (or any successor to that index) for the month of October immediately preceding, rounded to the nearest dollar amount.

B. Maximum Tax Payment. The maximum amount of the tax to be paid is as follows:

1. Effective January 1, 2025, the maximum tax payment will be two hundred and fifty thousand dollars ($250,000)

2. Effective January 1, 2026, the maximum tax payment will be three hundred and fifty thousand dollars ($350,000)

3. Effective January 1, 2027, and thereafter, the maximum tax payment will be five hundred thousand dollars ($500,000).

4. Effective January 1, 2028, and every January 1st thereafter, the maximum tax payment from the previous year shall be adjusted by the percentage change in the Consumer Price

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Index (All Urban Consumers) issued by the Bureau of Labor Statistics of the United States Department of Labor for the San Francisco-Oakland-San Jose, California, area (or any successor to that index) for the month of October immediately preceding, rounded to the nearest thousand dollars.

Alternative Model 4X-2 Gross Receipts $0.75 to $3.00 with $250K maximum tax Section 5.24.010 has been amended to reflect the model 4X-2 gross receipts $0.75 to $3.00 with $250K maximum tax payment, as included in the Ordinance. For the redline version, please refer to Attachment 4.

5.24.010 Rates
For tax years beginning on or after January 1, 2025, every person who engages in business at a fixed place of business within the city shall pay a license tax at the following rates to the maximum tax limit set forth in section 5.24.010 B. below:
•A minimum of $200 for gross receipts between $0 and $267,000 for General Contractors or a minimum of $100 for gross receipts between $0 and $133,500 for all other businesses.
•0.075% (75 cents per $1,000) for gross receipts between $133,500 and $4,400,000. •0.088% (88 cents per $1,000) for gross receipts between $4,400,001 and $8,500,000.
•0.1% ($1 per $1,000) for gross receipts between $8,500,001 and $12,650,000. •0.113% ($1.13 per $1,000) for gross receipts between $12,650,001 and $16,750,000.
•0.125% ($1.25 per $1,000) for gross receipts between $16,750,001 and $20,900,000.
•0.138% ($1.38 per $1,000) for gross receipts between $20,900,001 and $25,000,000.
•0.3% ($3.00 per $1,000) for gross receipts over $25,000,000.

For purposes of calculating the gross receipts, cents will be rounded up to the nearest dollar.

These rates are subject to the following:

A. Minimum Tax. The minimum tax shall be as follows:

Effective
Date
General
Contractor
All Other Businesses
January 1,
2025, and
thereafter
$200 $100
Effective January 1, 2026, and every January 1st thereafter, the minimum tax payment from

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the previous year shall be adjusted by the percentage change in the Consumer Price Index (All Urban Consumers) issued by the Bureau of Labor Statistics of the United States Department of Labor for the San Francisco-Oakland-San Jose, California, area (or any successor to that index) for the month of October immediately preceding, rounded to the nearest dollar amount.

B. Maximum Tax Payment. The maximum amount of the tax to be paid is as follows:

1. Effective January 1, 2025 the maximum tax payment will be two hundred and fifty thousand dollars ($250,000).

2. Effective January 1, 2026, and every January 1st thereafter, the maximum tax payment from the previous year shall be adjusted by the percentage change in the Consumer Price Index (All Urban Consumers) issued by the Bureau of Labor Statistics of the United States Department of Labor for the San Francisco-Oakland-San Jose, California, area (or any successor to that index) for the month of October immediately preceding, rounded to the nearest thousand dollars.

Ballot Initiative Process
If the City Council wishes to proceed with the ballot measure, the City Council needs to approve the attached resolution placing the ordinance on the November 2024 ballot.

The ordinance would only become effective if approved by a majority of the voters at the November 2024 election.

The ballot measure would be presented to the voters at the November 5, 2024, election.

The measure must be no longer than 75 words and phrased as a question stating the nature of the ordinance (Cal. Elections Code § 13119, 13247 and 9051). Elections Code Section 13119 contains the following specific requirements pertaining to local elections on tax measures:
a) The ballots used when voting upon a measure proposed by a local governing body or submitted to the voters as an initiative or referendum measure pursuant to Division 9 (commencing with Section 9000), including a measure authorizing the issuance of bonds or the incurrence of debt, shall have printed on them the words “Shall the measure (stating the nature thereof) be adopted?” Opposite the statement of the measure to be voted on, and to its right, the words “Yes” and “No” shall be printed on separate lines, with voting squares. If a voter stamps a cross (+) in the voting square after the printed word “Yes,” his or her vote shall be counted in favor of the adoption of the measure. If he or she stamps a cross (+) in the voting square after the printed word “No,” his or her vote shall be counted against its adoption.
b) If the proposed measure imposes a tax or raises the rate of a tax, the ballot shall include in the statement of the measure to be voted on the amount of money to be raised annually and the rate and duration of the tax to be levied. c) The statement of the measure shall be a true and impartial synopsis of the purpose of the proposed measure and shall be in language that is neither argumentative nor likely to create prejudice for or against the measure.

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A resolution with corresponding ballot language and its draft ordinance has been prepared for each of the four (4) models. For Model 1, see Attachment 1; for Model 2, see Attachment 2; for Model 3, see Attachment 3 and for Model 4, see Attachment 4. If the Council decides to move forward with one of the models, then the Council should adopt the resolution it would like, which would submit the Council's ballot measure to voters at the November 5, 2024, regular municipal election. Provided below is the ballot language for the four (4) models (please note that the additional revenue numbers have been rounded to the nearest $100,000).

Model $0.75 rate with $500K maximum tax
YesTo protect Foster City’s financial stability and maintain essential services including 911 emergency response, property crime prevention, street repairs, and infrastructure maintenance, shall an ordinance amending the business license tax by retaining the current rate of $0.75 per $1000 of gross receipts, retaining the $100/$200 minimum tax and increasing the maximum tax payment both with annual inflation adjustments, generating approximately $900,000 annually for locally controlled general fund purposes, until ended by voters, be adopted?
No
Model $1.00 rate with $500K Maximum Tax
YesTo protect Foster City’s financial stability and maintain essential services including 911 emergency response, property crime prevention, street repairs, and infrastructure maintenance, shall an ordinance amending the business license tax by increasing the rate by 25 cents to $1.00/$1000 of gross receipts, retaining the $100/$200 minimum tax and increasing the maximum tax payment both with annual inflation adjustments, generating approximately $1,400,000 annually for locally controlled general fund purposes, until ended by voters, be adopted?
No
Model $1.25 rate with $500K Maximum Tax
YesTo protect Foster City’s financial stability and maintain essential services including 911 emergency response, property crime prevention, street repairs, and infrastructure maintenance, shall an ordinance amending the business license tax by increasing the rate by 50 cents to $1.25/$1000 of gross receipts, retaining the $100/$200 minimum tax and increasing the maximum tax payment both with annual inflation adjustments, generating approximately $1,900,000 annually for locally controlled general fund purposes, until ended by voters, be adopted?
No
Model 4X-2 Gross Receipts $0.75 to $3.00 with $250K Maximum Tax YesTo protect Foster City’s financial stability and maintain essential services including 911 emergency response, property crime prevention, street repairs, and infrastructure maintenance, shall an ordinance amending the business license tax with varying the rates from $0.75 to $3.00 per $1000 of gross receipts, retaining the $100/$200 minimum tax and increasing the maximum tax payment both with annual inflation adjustments, generating approximately $1,400,000 annually for locally controlled general fund purposes, until ended by voters, be adopted?
No
Calling for Election and Consolidation of Election

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If the City Council wants to place a measure on the November 5th ballot, the Council must adopt a resolution placing any such measure on the ballot and submit it to the County of San Mateo Board of Supervisors and Assessor County Clerk-Recorder Elections' Office no later than 5:00 PM on August 9, 2024. The resolution contains the wording of the measure as it would appear on the ballot and request its consolidation with the November 5, 2024, General Election. The draft resolutions presented for the Council’s consideration also establishes Argument and Rebuttal deadlines that correspond to the deadlines set by the County.

If the measure is approved by a majority (50% + 1) vote of the voters, it cannot be changed absent a subsequent vote of the people (Cal. Elections Code § 9222 and 9217).

Impartial Analysis
The Elections Code requires that when any city measure qualifies for the ballot, that the governing body direct the city elections official to transmit a copy of the measure to the City Attorney to prepare an impartial analysis of the measure showing the effect of the measure on the existing law and the operation of the measure (Cal. Elections Code § 9280). The impartial analysis is required not to exceed 500 words. The draft resolutions presented for the Council’s consideration include language directing the City Attorney to submit the impartial analysis for this measure in accordance with State law.

Primary Arguments
The Elections Code allows any of the following to file a written primary argument (for or against) not to exceed 300 words in length for or against any city measure:
•The City Council or any member or members of the City Council authorized by it; •The individual voter, or bona fide association of citizens, or combination of voters and associations, who are the bona fide sponsors or proponents of the measure; •Bona fide associations of citizens; or
•Individual voters who are eligible to vote on the measure.

The City Council has the authority to prepare a primary argument as a whole body or authorize individual Councilmembers to do so in lieu of the whole Council. If an individual Councilmember decides to author or sign an argument as an individual Councilmember, authorization is required from the City Council by placing their name or names in the attached resolution as either in favor of or against the measure and adopting the resolution.

For example, if Councilmembers A and B want to author and sign a primary argument in favor of the measure, their names would be incorporated into the attached resolution as “Councilmember(s) in Favor” and they would be authorized to give their opinions as individual Councilmembers. Likewise, if Councilmembers C and D want to author and sign a primary argument against the measure, their names would be incorporated into the attached resolution as “Councilmember(s) Against.”

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Only one argument in favor of and one argument against the measure will be placed in the sample ballot. Pursuant to Elections Code § 9287, if more than one argument for or more than one argument against any city measure is submitted to the City Clerk within the time prescribed, the City Clerk shall select one of the arguments in favor and one of the arguments against the measure for printing and distribution to the voters. In selecting the argument, the City Clerk shall give preference and priority, in the order named, to the arguments of the following:

1. The City Council or any member or members of the City Council authorized by it;

2. The individual voter, or bona fide association of citizens, or combination of voters and associations, who are the bona fide sponsors or proponents of the measure;

3. Bona fide associations of citizens; or

4. Individual voters who are eligible to vote on the measure.

The proposed resolutions authorize the Mayor, or his designee(s), to prepare a written argument in favor of the proposed measure on behalf of the City Council.

FISCAL IMPACT
If approved by voters in November, the estimated additional revenues generated by the four models could range from approximately $986,911 to $1,995,300 annually. The cost of the ballot measure is approximately $15,000, which would account for San Mateo County election costs as well as publishing expenses. This amount is incorporated in the FY 2024-25 adopted budget.

ENVIRONMENTAL ASSESSMENT
In accordance with CEQA Guidelines Section 15378(b)(4), placement of a ballot measure on the ballot to amend the City's business license tax is not a project subject to CEQA, because it is a financing decision without commitment to a specific project that may result in a potentially significant physical impact on the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the actions proposed are not subject to CEQA.

ATTACHMENTS:

Attachment 1 – Resolution for Model $0.75 rate with $500K maximum tax with corresponding Ordinance as Exhibit A
Attachment 2 – Resolution for Model $1.00 rate with $500K maximum tax with corresponding Ordinance as Exhibit A
Attachment 3 – Resolution for Model $1.25 rate with $500K maximum tax with corresponding Ordinance as Exhibit A
Attachment 4 – Resolution for Model 4X-2 with a tiered rate with $250K maximum tax with corresponding Ordinance as Exhibit A.

Attachment 5 – Memo by FM3 on Businesses Survey Analysis

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RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FOSTER CITY ORDERING

THE SUBMISSION TO THE QUALIFIED VOTERS OF THE CITY AT THE GENERAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 5, 2024, A MEASURE TO AMEND SECTION 5.04.060 (CONSTITUTIONAL APPORTIONMENT) OF CHAPTER 5.04 (GENERAL PROVISIONS), SECTIONS 5.08.050 (GROSS RECEIPTS), 5.08.080 (SOLICITOR), 5.08.090 (SPECIALTY CONTRACTOR), AND 5.08.100 (SWORN STATEMENT) OF CHAPTER 5.08 (DEFINITIONS), AND SECTION 5.24.010 (RATES) OF CHAPTER 5.24 (GROSS RECEIPTS TAX), WITHIN SECTION I (BUSINESS LICENSES GENERALLY) OF TITLE 5 (BUSINESS LICENSES AND REGULATION) OF

THE FOSTER CITY MUNICIPAL CODE AUTHORIZING THE SUBMITTAL OF BALLOT ARGUMENTS IN FAVOR OF OR AGAINST THE MEASURE; PROVIDING FOR REBUTTAL ARGUMENTS; AND DIRECTING THE CITY ATTORNEY TO PREPARE AN

IMPARTIAL ANALYSIS

CITY OF FOSTER CITY
WHEREAS, the City of Foster City requires all businesses operating within the City of Foster City to obtain a business license and pay associated taxes in accordance with Title 5 – Business Licenses and Regulation of the Foster City Municipal Code (FCMC); and
WHEREAS, the City's Business License Tax (BLT) Ordinance was enacted in 1972, shortly after the City's incorporation; and
WHEREAS, the BLT Ordinance was last amended and a ballot measure (Measure U) to increase the BLT was approved by the Foster City voters in 2013; and WHEREAS, Chapters 5.04 to 5.40 of FCMC Title 5 outline the provisions of the City's current BLT; and
WHEREAS, the current BLT model which the City follows is based on a gross receipts with a single tax rate of $0.75 per $1000 of gross receipts, utilizes a minimum tax of $100 ($200 for General Contractors) and a maximum tax ($28,597 based on FY 2023 licensing period); and
WHEREAS, under the current BLT model, a business has to gross more than approximately $33 million in gross receipts to pay the maximum tax; and WHEREAS, the City is anticipating ongoing structural deficit in its budget over the next five years; and
WHEREAS, in recognition of the fiscal challenges facing the City and the City‘s commitment to provide uninterrupted services to the community, the City Council directed staff to consider an increase to the City’s BLT as a potential revenue enhancement option in 2022; and
WHEREAS, in 2023, one of the goals that the City Council adopted at its Vision & Policy Summit was to “Identify new revenue sources and strengthen existing resources to ensure Foster City finances are more resilient to economic fluctuations and support city

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services” and directed staff to research BLT methodologies and consider feasibility of various methodologies (e.g., gross receipts, square footage, employee count); and WHEREAS, the staff began to explore potential BLT models that could generate additional revenue and presented to City Council at various public meetings; and WHEREAS, at the July 15 public meeting, the City Council selected the BLT model retaining the minimum tax of $100 ($200 for General Contractors), with a maximum tax of $500,000, and retaining the fixed gross receipt rate of $0.75 per $1000 of gross receipts. In addition, the maximum tax increase be phased in over a three-year period, with both the minimum tax and maximum tax adjusted annually for inflation based on the local Consumer Price Index (CPI); and
WHEREAS, a proposed ordinance attached hereto and incorporated herein by reference as Attachment “A” (“the Ordinance”) would amend various sections of Chapters

5.04, 5.08 and 5.24 within Title 5 of FCMC and revise the BLT on businesses operating in the City; and
WHEREAS, on June 3, 2024, the City Council approved City Resolution No. 2024-53 calling and giving notice of the holding of a General Municipal Election to be held on November 5, 2024 for the election of three members of the City Council as required by the provisions of the laws of the State of California relating to general law cities; and, WHEREAS, California Constitution Article XIIIC, Section 2, provides that no local government may increase any general tax unless and until that tax is submitted to the electorate and approved by a majority vote, and that a measure proposing to adopt a general tax must be consolidated with a regularly scheduled General Municipal Election for members of the City Council; and
WHEREAS, the City Council desires, to amend various sections of Chapters 5.04,

5.08, and 5.24 within Section I (Business License Generally) of Title 5 (Business Licenses and Regulations) of the FCMC, with the funds to be deposited in the City’s General Fund and to be used for locally controlled general fund purposes to protect Foster City’s financial stability and maintain essential services including but not limited to 911 emergency response, property crime prevention, street repairs, and infrastructure maintenance; and WHEREAS, the Foster City Council is authorized by California Elections Code Section 9222 and California Revenue and Taxation Code Section 7285.9 to place such a measure before the voters; and
WHEREAS, California Government Code Section 53724(b) authorizes the City Council to place such a tax measure before the voters subject to a two-thirds vote of all members of the legislative body; and
WHEREAS, California Elections Code section 9282 authorizes the filing of written arguments for and against measures placed on the ballot, with priority determined according to state law; and
WHEREAS, the approval of this Resolution is exempt from the California Environmental Quality Act (Public Resources Code §§ 21000 et seq., “CEQA,” and 14 Cal.

Code Reg. §§ 15000 et seq., “CEQA Guidelines”). The tax to be submitted to the voters is a general tax that can be used for any legitimate governmental purpose; it is not a commitment

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468

to any particular action. As such, under CEQA Guidelines section 15378(b)(4), the tax is not a project within the meaning of CEQA because it creates a government funding mechanism that does not involve any commitment to any specific project that may result in a potentially significant physical impact on the environment. Therefore, pursuant to CEQA Guidelines section 15060 CEQA analysis is not required; and
WHEREAS, it is desirable that the General Municipal Election be consolidated with the other county and state elections to be held on the same date, that within the city, precincts, polling places and election offices of the two elections to be the same, that the County Election Department of the County of San Mateo canvass the returns of the General Municipal Election, and that the election be held in all respects as if there were only one election.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Foster City that the City Council does hereby declare, determine and order as follows:

A. The above recitals are true and correct and incorporated herein as findings.

B. That the City Council finds and determines that this activity is not a “Project” as defined under Section 15378(b)(4) of the California Environmental Quality Act (CEQA) Guidelines because it is a financing decision without commitment to a specific project that may result in a potentially significant physical impact on the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the actions proposed are not subject to CEQA.

C. That pursuant to the requirements of the laws of the State of California relating to General Law Cities, there has been called and ordered to be held in the City of Foster City, California, on Tuesday, November 5, 2024, a General Municipal Election.

D. That the City Council, pursuant to its right and authority, hereby submits to the voters of the City and orders the following question submitted to the voters at the November 5, 2024, General Municipal Election:

City of Foster City Business License Tax Measure
Yes ￿
To protect Foster City’s financial stability and maintain essential services including 911 emergency response,
property crime prevention, street repairs, and infrastructure maintenance, shall an ordinance amending the business
license tax by retaining the current rate of $0.75 per $1000 of gross receipts, retaining the $100/$200 minimum tax and increasing the maximum tax payment both with annual inflation adjustments, generating approximately $900,000 annually for locally controlled general fund purposes, until ended by voters, be adopted?
No ￿
E. That the Ordinance to be placed before the voters is attached as Exhibit “A”

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hereto and incorporated into this resolution by reference. The “full text” of the proposed ordinance shall appear in the Voter Information Pamphlet.

F. That the City Clerk is directed to file certified copies of this Resolution with the Board of Supervisors and the Elections Office of the County of San Mateo, together with the attached ballot measure.

G. The City Clerk is directed to transmit a copy of the measure to the City Attorney, and City Attorney is directed to prepare an impartial analysis of the measure not exceeding 500 words showing the effect of the measure on the existing law and the operation of the measure and to file the analysis no later than August 20, 2024 with the City Clerk by 5:00 pm.

H. The City Council authorizes the Mayor or their designee(s) to file written argument(s) not exceeding 300 words regarding the City Measure as specified above, accompanied by the printed name(s) and signature(s) of the person(s) submitting it, in accordance with Article 4, Chapter 3, Section 9 of the California Elections Code. Primary Arguments must be submitted to the City Clerk not later than August 13, 2024 by 5:00 pm. If more than one argument for or against is received, the priorities established by Elections Code Section 9287 shall control. That pursuant to Sections 9220 and 9285 of the California Elections Code, when the City Clerk has selected arguments for and against the measure which will be printed and distributed to the voters, the City Clerk shall send copies of the argument in favor of the measure to the authors of the argument against, and copies of the argument against to the authors of the argument in favor.

I. The authors may prepare and submit rebuttal arguments not exceeding 250 words. A rebuttal argument may not be signed by more than five (5) authors.

Rebuttal arguments shall be printed in the same manner as the primary arguments. Each rebuttal argument shall immediately follow the primary argument which it seeks to rebut. Rebuttal Arguments must be submitted to the City Clerk not later than August 20, 2024 by 5:00 pm.

J. The measure requires a simple majority of the voters voting on the proposed measure to pass.

K. The City Clerk is authorized, instructed and directed to work with the County Elections Office as needed to properly and lawfully conduct the election on the measure. The ballots to be used in the election shall be in the form and content as required by law. The County Elections Office is authorized to canvass the returns of the General Municipal Election. In all particulars not recited in this Resolution, the election shall be held and conducted as provided by law for holding municipal elections.

L. The Board of Supervisors is requested to instruct the County Elections Office to provide such services as may be necessary for the holding of the consolidated election. The election shall be held in all respects as if there were only one election. The City acknowledges that the consolidated election will be held and conducted in the manner prescribed in Elections

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470

Code Section 10418. The City recognizes that the County will incur additional costs because of this consolidation and agrees to reimburse the County for those costs. The City Manager is hereby authorized and directed to expend the necessary funds to pay for the City’s cost of placing the measure on the election ballot.

M. The City Clerk is hereby directed to cause notice of the measure to be published once in an official newspaper of general circulation for the City of Foster City, in accordance with Section 12111 of the Elections Code and Section 6061 of the Government Code.

PASSED AND ADOPTED as a resolution of the City Council of the City of Foster City at the Regular Meeting held on the 15th day of July, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

PATRICK SULLIVAN, MAYOR
ATTEST:

PRISCILLA SCHAUS, CITY CLERK

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ORDINANCE NO. ___________

AN ORDINANCE OF THE CITY OF FOSTER CITY AMENDING SECTION 5.04.060 (CONSTITUTIONAL APPORTIONMENT) OF CHAPTER 5.04 (GENERAL PROVISIONS), SECTIONS 5.08.050 (GROSS RECEIPTS), 5.08.080 (SOLICITOR),

5.08.090 (SPECIALTY CONTRACTOR), AND 5.08.100 (SWORN STATEMENT) OF CHAPTER 5.08 (DEFINITIONS), AND SECTION 5.24.010 (RATES) OF CHAPTER 5.24 (GROSS RECEIPTS TAX), WITHIN SECTION I (BUSINESS LICENSES GENERALLY) OF TITLE 5 (BUSINESS LICENSES AND REGULATION) OF THE FOSTER CITY MUNICIPAL CODE TO UPDATE THE CITY’S BUSINESS LICENSE TAX

CITY OF FOSTER CITY

WHEREAS, the City of Foster City requires all businesses operating within the City of Foster City to obtain a business license and pay associated taxes in accordance with Title 5 – Business Licenses and Regulation of the Foster City Municipal Code (FCMC); and

WHEREAS, the City's Business License Tax (BLT) Ordinance was enacted in 1972, shortly after the City's incorporation; and

WHEREAS, the BLT Ordinance was last amended and a ballot measure (Measure U) to increase the BLT was approved by the Foster City voters in 2013; and

WHEREAS, Chapters 5.04 to 5.40 of FCMC Title 5 outline the provisions of the City's current BLT; and

WHEREAS, the current BLT model which the City follows is based on a gross receipts model with a single tax rate of $0.75 per $1,000 of gross receipts, utilizes a minimum tax of $100 ($200 for General Contractors) and a maximum tax ($28,597 based on FY 2023 licensing period); and

WHEREAS, under the current BLT model, a business has to gross more than approximately $33 million in gross receipts to pay the maximum tax; and

WHEREAS, the City is anticipating ongoing structural deficit in its budget over the next five years; and

WHEREAS, in recognition of the fiscal challenges facing the City and the City‘s commitment to provide uninterrupted services to the community, the City Council directed staff to consider an increase to the City’s BLT as a potential revenue enhancement option in 2022; and

WHEREAS, in 2023, one of the goals that the City Council adopted at its Vision & Policy Summit was to “Identify new revenue sources and strengthen existing resources to ensure Foster City finances are more resilient to economic fluctuations and support city services” and directed staff to research BLT methodologies and

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472

consider feasibility of various methodologies (e.g., gross receipts, square footage, employee count); and

WHEREAS, the City Council desires, to amend various sections of Chapters 5.04,

5.08, and 5.24 within Section I (Business License Generally) of Title 5 (Business Licenses and Regulations) of the FCMC, with the funds to be deposited in the City’s General Fund and to be used for locally controlled general fund purposes to protect Foster City’s financial stability and maintain essential services including but not limited to 911 emergency response, property crime prevention, street repairs, and infrastructure maintenance; and

WHEREAS, this ordinance is exempt from the California Environmental Quality Act (Public Resources Code §§ 21000 et seq., “CEQA,” and 14 Cal. Code Reg. §§ 15000 et seq., “CEQA Guidelines”). The tax to be submitted to the voters is a general tax that can be used for any legitimate governmental purpose; it is not a commitment to any particular action. As such, under CEQA Guidelines section 15378(b)(4), the tax is not a project within the meaning of CEQA because it creates a government funding mechanism that does not involve any commitment to any specific project that may result in a potentially significant physical impact on the environment.  Therefore, pursuant to CEQA Guidelines section 15060 CEQA analysis is not required; and

WHEREAS, the City Council believes that it is in the best interests of the City to submit the proposed amendments to the BLT to the voters of Foster City.

NOW, THEREFORE, THE PEOPLE OF THE CITY OF FOSTER CITY DO ORDAIN AS FOLLOWS:

Section 1. Amendment. Section 5.04.060 (Constitutional Apportionment) of Chapter 5.04 (General Provisions), Sections 5.08.050 (Gross Receipts), 5.08.080 (Solicitor), 5.08.090 (Specialty Contractor), and 5.08.100 (Sworn Statement) of Chapter 5.08 (Definitions), and Section 5.24.010 (Rates) of Chapter 5.24 (Gross Receipts Tax), within Section I (Business Licenses Generally) of Title 5 (Business Licenses and Regulation) of the Foster City Municipal Code are hereby amended as set forth in Exhibit 1 which is attached hereto and incorporated herein by reference.

All other provisions of Chapters 5.04 through 5.40 within Section 1 (Business Licenses Generally) of Title 5 (Business Licenses and Regulation) not amended by this Ordinance remain in full force and effect.

Section 2. Audits. Proceeds resulting from the BLT shall be deposited into the City’s General Fund and become subject to the same audit requirements as other General Fund revenues. Any auditor’s report shall include an accounting of the revenues received from the BLT and shall be presented to the City Council annually and made available for public review.

Section 3. Severability. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity

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of the remaining portions of this Ordinance. The City Council hereby declares that it should have adopted the Ordinance and each section, subsection, sentence, clause, or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared unconstitutional.

Section 4. Effective Date. This Ordinance shall go into effect in accordance with Elections Code Section 9217and shall be deemed adopted and become effective only if approved by a majority of the eligible voters of the City of Foster City voting thereon, at an election to be held on November 5, 2024, and shall take effect ten (10) days after the City Council has certified the results of that election by resolution. The levying and collection of the BLT shall be as specified in Chapters 5.04 through 5.40 within Section I of Title 5 of the Foster City Municipal Code and as directed by the City Council.

PASSED AND ADOPTED by the voters of the City of Foster City this November 5, 2024.

It is hereby certified that this Ordinance was duly adopted by the voters at the November 5, 2024, election, and that the City Council declared the results of such election, in the manner required by law, at a meeting of the City Council held on December __, 2024 by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

APPROVED:

____________________________
Patrick Sullivan, Mayor

ATTEST:

__________________________
Priscilla Schaus, City Clerk

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EXHIBIT 1
A. Section 5.04.060 of Chapter 5.04 in Title 5 of the Foster City Municipal Code is hereby amended to read as follows:
“5.04.060 Constitutional apportionment.

A. No Undue Burden. None of the license taxes provided for by this article shall be so applied as to occasion an undue burden upon interstate commerce or to violate the equal protection and due process clauses of the Constitutions of the United States and the state of California. When, by reason of the provisions of the Constitution of the United States or the Constitution of California, the license fee imposed by this chapter cannot be enforced without there being an apportionment according to the amount of business done in the City or in the state, as the case may be, the City Manager or designee shall, in consultation with City Attorney Office, prepare and issue regulations with respect to apportionment and such regulations shall provide adequate notice.

B. Apportionment Appeal Rights. In any case where a license tax is believed by a licensee or applicant for a license to place an undue burden upon interstate commerce or to violate constitutional nexus requirements or other applicable law, the licensee or applicant may apply to the collector for an adjustment of the tax. Such application may be made before, at or within six months after payment of the prescribed license tax. The applicant shall, by sworn statement and supporting testimony, show the method of business and the gross volume or estimated gross volume of business and such other information as the collector may deem necessary to determine the extent, if any, of such undue burden or violation. The collector shall then conduct an investigation, and, upon the written approval of the city attorney, shall fix as the license tax for the applicant an amount that is reasonable and nondiscriminatory, or, if the license tax has already been paid, shall order a refund of the amount over and above the license tax so fixed. In fixing the license tax to be charged, the collector shall have the power to base the license tax upon a percentage of gross receipts or any other measure which will ensure that the license tax assessed shall be uniform with that assessed on businesses of like nature, so long as the amount assessed does not exceed the license tax as prescribed by this article. Should the

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collector determine the gross receipts measure of license tax to be the proper basis, he may require the applicant to submit, either at the time of termination of applicant’s business in the city or at the end of each three-month period, a sworn statement of the gross receipts and pay the amount of license tax therefor; provided, that no additional license tax during any one calendar year shall be required after the licensee has paid an amount equal to the annual license tax as prescribed in this article.”
B. Section 5.08.050 of Chapter 5.08 in Title 5 of the Foster City Municipal Code is hereby amended to read as follows:
“5.08.050 Gross receipts.

As used in this article, “gross receipts”, except as otherwise specifically provided, includes the total amounts attributable to business activity within the city actually received or receivable by a person from all sales of goods, materials, wares or merchandise, and the total amounts actually received or receivable by a person for the performance of any act or service, of whatever nature it may be, for which a charge is made or credit allowed, whether or not such act or service is done as a part of or in connection with the sale of materials, goods, wares or merchandise.

Included in “gross receipts” shall be all receipts, cash, credits, investment income, rental income, and proceeds from the sale of property of any kind or nature, without any deduction on account of the cost of the property sold, the cost of materials used, labor or service costs, interest paid or payable, or losses or other expenses whatsoever. The following are excluded from “gross receipts”:

A. A. Cash discounts allowed and taken on sales;
B. Transactions between a partnership and its partners; C. B. Credit allowed on property accepted as part of a purchase price and which property may later be sold;
D. C. Any tax required by law to be and is included in or added to the purchase price and collected from the consumer or purchaser;
E. D. Such part of the sale price of property returned by purchasers upon rescission of a contract of sale as is refunded either in cash or by credit; F. E. Amounts collected for others as an agent or trustee to the extent such amounts are paid to those for whom collected, provided the agent or trustee has furnished the collector with the names and addresses of the others and the amounts paid to them;

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G. F. That portion of the receipts of a business related to sales of goods or services to the city of Foster City;
H. G. That portion of the receipts of a general contractor which represents payments to subcontractors; provided, that such subcontractors are licensed under this article and provided the general contractor furnishes the collector with the names and addresses of the subcontractors and the amounts paid each;
I. H. Receipts of refundable deposits, except that refundable deposits forfeited and taken into income shall not be excluded;
J. I. As to a real estate agent or broker, the sales price of real estate sold for the account of others except that portion which represents commission or other income to the agent or broker.”
C. Sections 5.08.080 and 5.08.090 of Chapter 5.08 in Title 5 of the Foster City Municipal Code are hereby deleted in their entirety:

5.08.080 Solicitor.

As used in this article, “solicitor” means one who engages in the business of going from house to house, place to place or in or along the streets within the city, selling or taking orders for, or offering to sell or take orders for, goods, wares, merchandise or other things of value for future delivery, or for services to be performed in the future. (Ord. 572 § 1 Exh. A (part), 2013: Ord. 45 § 1 (part), 1972: prior code § 4-101(j))

5.08.090 Specialty contractor.

As used in this article, a “specialty contractor” is as defined in Section 7058 of the Business and Professions Code of the state as it now exists or may hereafter be amended. (Ord. 572 § 1 Exh.

A (part), 2013: Ord. 45 § 1 (part), 1972: prior code § 4-101(i)) D. Section 5.84.100 of Chapter 5.08 in Title 5 of the Foster City Municipal Code is hereby renumbered to be Section 5.08.080:
“5.08.100080 Sworn statement.

As used in this article, “sworn statement” means an affidavit sworn before a person authorized to take oaths, or a declaration or certification made under penalty of perjury.”

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E. Section 5.24.000 of Chapter 5.24 in Title 5 of the Foster City Municipal Code is amended to read as follows:
“5.24.010 Rates.

Every person who engages in business at a fixed place of business within the city shall pay a license tax of seventy-five cents per one thousand dollars (or 0.075 percent) of gross receipts or part thereof up to the maximum tax payment amount set forth in section 5.24.010 B. below:
subject to the following:For purposes of calculating the gross receipts, cents will be rounded up to the nearest dollar.

A. Minimum Tax. The minimum tax shall be as follows:

Effective
Date
General
Contractor
Specialty
Contractor
Solicitor All Other
Businesses
January
1, 2014
$100 $50 $50 $50
January
1, 2015
$150 $75 $75 $75
January
1, 2016,
and
thereafter
$200 $100 $100 $100
January
1, 2025,
and
thereafter
$200 $100
Effective January 1, 2026, and every January 1st thereafter, the minimum tax payment from the previous year shall be adjusted by the percentage change in the Consumer Price Index (All Urban Consumers) issued by the Bureau of Labor Statistics of the United States Department of Labor for the San Francisco-Oakland-San Jose, California, area (or any successor to that index) for the month of October immediately preceding, rounded to the nearest dollar amount.

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B. Maximum Tax Payment.Gross Receipts Limit. The maximum amount of the tax to be paid isThe limit upon which the license tax shall be computed will be as follows:

1. Effective January 1, 2025, the maximum tax payment will be two hundred and fifty thousand dollars ($250,000).

2. Effective January 1, 2026, the maximum tax payment will be three hundred and fifty thousand dollars ($350,000).

3. Effective January 1, 2027, and thereafter, the maximum tax payment will be five hundred thousand dollars ($500,000).

1. Effective January 1, 2014, taxable gross receipts shall be limited to ten million dollars.

2. Effective January 1, 2015, taxable gross receipts shall be limited to twenty million dollars.

3. Effective January 1, 2016, taxable gross receipts shall be limited to thirty million dollars.

4. Effective January 1, 2017, and every January 1st thereafter, the taxable gross receipts limit shall be adjusted by the percentage change in the Consumer Price Index (All Urban Consumers) issued by the Bureau of Labor Statistics of the United States Department of Labor for the San Francisco-Oakland-San Jose, California, area (or any successor to that index) for the month of October immediately preceding, rounded to the nearest ten thousand dollars. 4.

Effective January 1, 2028, and every January 1st thereafter, the maximum tax payment from the previous year shall be adjusted by the percentage change in the Consumer Price Index (All Urban Consumers) issued by the Bureau of Labor Statistics of the United States Department of Labor for the San Francisco-Oakland-San Jose, California, area (or any successor to that index) for the month of October immediately preceding, rounded to the nearest thousand dollars.”

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RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FOSTER CITY ORDERING

THE SUBMISSION TO THE QUALIFIED VOTERS OF THE CITY AT THE GENERAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 5, 2024, A MEASURE TO AMEND SECTION 5.04.060 (CONSTITUTIONAL APPORTIONMENT) OF CHAPTER 5.04 (GENERAL PROVISIONS), SECTIONS 5.08.050 (GROSS RECEIPTS), 5.08.080 (SOLICITOR), 5.08.090 (SPECIALTY CONTRACTOR), AND 5.08.100 (SWORN STATEMENT) OF CHAPTER 5.08 (DEFINITIONS), AND SECTION 5.24.010 (RATES) OF CHAPTER 5.24 (GROSS RECEIPTS TAX), WITHIN SECTION I (BUSINESS LICENSES GENERALLY) OF TITLE 5 (BUSINESS LICENSES AND REGULATION) OF

THE FOSTER CITY MUNICIPAL CODE, AUTHORIZING THE SUBMITTAL OF BALLOT ARGUMENTS IN FAVOR OF OR AGAINST THE MEASURE; PROVIDING FOR REBUTTAL ARGUMENTS; AND DIRECTING THE CITY ATTORNEY TO PREPARE AN

IMPARTIAL ANALYSIS

CITY OF FOSTER CITY
WHEREAS, the City of Foster City requires all businesses operating within the City of Foster City to obtain a business license and pay associated taxes in accordance with Title 5 – Business Licenses and Regulation of the Foster City Municipal Code (FCMC); and
WHEREAS, the City's Business License Tax (BLT) Ordinance was enacted in 1972, shortly after the City's incorporation; and
WHEREAS, the BLT Ordinance was last amended and a ballot measure (Measure U) to increase the BLT was approved by the Foster City voters in 2013; and WHEREAS, Chapters 5.04 to 5.40 of FCMC Title 5 outline the provisions of the City's current BLT; and
WHEREAS, the current BLT model which the City follows is based on a gross receipts model with a single tax rate of $0.75 per $1000 of gross receipts, utilizes a minimum tax of $100 ($200 for General Contractors) and a maximum tax ($28,597 based on FY 2023 licensing period); and
WHEREAS, under the current BLT model, a business has to gross more than approximately $33 million in gross receipts to pay the maximum tax; and WHEREAS, the City is anticipating ongoing structural deficit in its budget over the next five years; and
WHEREAS, in recognition of the fiscal challenges facing the City and the City‘s commitment to provide uninterrupted services to the community, the City Council directed staff to consider an increase to the City’s BLT as a potential revenue enhancement option in 2022; and
WHEREAS, in 2023, one of the goals that the City Council adopted at its Vision & Policy Summit was to “Identify new revenue sources and strengthen existing resources to ensure Foster City finances are more resilient to economic fluctuations and support city services” and directed staff to research BLT methodologies and consider feasibility of various methodologies (e.g., gross receipts, square footage, employee count); and

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WHEREAS, the staff began to explore potential BLT models that could generate additional revenue and presented to City Council at various public meetings; and WHEREAS, at the July 15 public meeting, the City Council selected the BLT model retaining the minimum tax of $100 ($200 for General Contractors), with a maximum tax of $500,000, and a fixed gross receipt rate of $1.00 per $1000 of gross receipts. In addition, the maximum tax increase be phased in over a three-year period, with both the minimum tax and maximum tax adjusted annually for inflation based on the local Consumer Price Index (CPI); and
WHEREAS, a proposed ordinance attached hereto and incorporated herein by reference as Attachment “A” (“the Ordinance”) would amend various sections of Chapters

5.04, 5.08 and 5.24 within Title 5 of FCMC and revise the BLT on businesses operating in the City; and
WHEREAS, on June 3, 2024, the City Council approved City Resolution No. 2024-53 calling and giving notice of the holding of a General Municipal Election to be held on November 5, 2024 for the election of three members of the City Council as required by the provisions of the laws of the State of California relating to general law cities; and, WHEREAS, California Constitution Article XIIIC, Section 2, provides that no local government may increase any general tax unless and until that tax is submitted to the electorate and approved by a majority vote, and that a measure proposing to adopt a general tax must be consolidated with a regularly scheduled General Municipal Election for members of the City Council; and
WHEREAS, the City Council desires, to amend various sections of Chapters 5.04,

5.08, and 5.24 within Section I (Business License Generally) of Title 5 (Business Licenses and Regulations) of the FCMC, with the funds to be deposited in the City’s General Fund and to be used for locally controlled general fund purposes to protect Foster City’s financial stability and maintain essential services including but not limited to 911 emergency response, property crime prevention, street repairs, and infrastructure maintenance; and WHEREAS, the Foster City Council is authorized by California Elections Code Section 9222 and California Revenue and Taxation Code Section 7285.9 to place such a measure before the voters; and
WHEREAS, California Government Code Section 53724(b) authorizes the City Council to place such a tax measure before the voters subject to a two-thirds vote of all members of the legislative body; and
WHEREAS, California Elections Code section 9282 authorizes the filing of written arguments for and against measures placed on the ballot, with priority determined according to state law; and
WHEREAS, the approval of this Resolution is exempt from the California Environmental Quality Act (Public Resources Code §§ 21000 et seq., “CEQA,” and 14 Cal.

Code Reg. §§ 15000 et seq., “CEQA Guidelines”). The tax to be submitted to the voters is a general tax that can be used for any legitimate governmental purpose; it is not a commitment to any particular action. As such, under CEQA Guidelines section 15378(b)(4), the tax is not a project within the meaning of CEQA because it creates a government funding mechanism

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that does not involve any commitment to any specific project that may result in a potentially significant physical impact on the environment. Therefore, pursuant to CEQA Guidelines section 15060 CEQA analysis is not required; and
WHEREAS, it is desirable that the General Municipal Election be consolidated with the other county and state elections to be held on the same date, that within the city, precincts, polling places and election offices of the two elections to be the same, that the County Election Department of the County of San Mateo canvass the returns of the General Municipal Election, and that the election be held in all respects as if there were only one election.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Foster City that the City Council does hereby declare, determine and order as follows:

A. The above recitals are true and correct and incorporated herein as findings.

B. That the City Council finds and determines that this activity is not a “Project” as defined under Section 15378(b)(4) of the California Environmental Quality Act (CEQA) Guidelines because it is a financing decision without commitment to a specific project that may result in a potentially significant physical impact on the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the actions proposed are not subject to CEQA.

C. That pursuant to the requirements of the laws of the State of California relating to General Law Cities, there has been called and ordered to be held in the City of Foster City, California, on Tuesday, November 5, 2024, a General Municipal Election.

D. That the City Council, pursuant to its right and authority, hereby submits to the voters of the City and orders the following question submitted to the voters at the November 5, 2024 General Municipal Election:

City of Foster City Business License Tax Measure
Yes ￿
To protect Foster City’s financial stability and maintain essential services including 911 emergency response,
property crime prevention, street repairs, and infrastructure maintenance, shall an ordinance amending the business
license tax by increasing the rate by 25 cents to $1.00/$1000 of gross receipts, retaining the $100/$200 minimum tax and increasing the maximum tax payment both with annual inflation adjustments, generating approximately $1,400,000 annually for locally controlled general fund purposes, until ended by voters, be adopted?
No ￿
E. That the Ordinance to be placed before the voters is attached as Exhibit “A” hereto and incorporated into this resolution by reference. The “full text” of the proposed ordinance shall appear in the Voter Information Pamphlet.

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F. That the City Clerk is directed to file certified copies of this Resolution with the Board of Supervisors and the Elections Office of the County of San Mateo, together with the attached ballot measure.

G. The City Clerk is directed to transmit a copy of the measure to the City Attorney, and City Attorney is directed to prepare an impartial analysis of the measure not exceeding 500 words showing the effect of the measure on the existing law and the operation of the measure and to file the analysis no later than August 20, 2024 with the City Clerk by 5:00 pm.

H. The City Council authorizes the Mayor or their designee(s) to file written argument(s) not exceeding 300 words regarding the City Measure as specified above, accompanied by the printed name(s) and signature(s) of the person(s) submitting it, in accordance with Article 4, Chapter 3, Section 9 of the California Elections Code. Primary Arguments must be submitted to the City Clerk not later than August 13, 2024 by 5:00 pm. If more than one argument for or against is received, the priorities established by Elections Code Section 9287 shall control. That pursuant to Sections 9220 and 9285 of the California Elections Code, when the City Clerk has selected arguments for and against the measure which will be printed and distributed to the voters, the City Clerk shall send copies of the argument in favor of the measure to the authors of the argument against, and copies of the argument against to the authors of the argument in favor.

I. The authors may prepare and submit rebuttal arguments not exceeding 250 words. A rebuttal argument may not be signed by more than five (5) authors.

Rebuttal arguments shall be printed in the same manner as the primary arguments. Each rebuttal argument shall immediately follow the primary argument which it seeks to rebut. Rebuttal Arguments must be submitted to the City Clerk not later than August 20, 2024 by 5:00 pm.

J. The measure requires a simple majority of the voters voting on the proposed measure to pass.

K. The City Clerk is authorized, instructed and directed to work with the County Elections Office as needed to properly and lawfully conduct the election on the measure. The ballots to be used in the election shall be in the form and content as required by law. The County Elections Office is authorized to canvass the returns of the General Municipal Election. In all particulars not recited in this Resolution, the election shall be held and conducted as provided by law for holding municipal elections.

L. The Board of Supervisors is requested to instruct the County Elections Office to provide such services as may be necessary for the holding of the consolidated election. The election shall be held in all respects as if there were only one election. The City acknowledges that the consolidated election will be held and conducted in the manner prescribed in Elections Code Section 10418. The City recognizes that the County will incur additional costs because of this consolidation and agrees to reimburse the County for those costs. The City Manager is hereby authorized and directed

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to expend the necessary funds to pay for the City’s cost of placing the measure on the election ballot.

M. The City Clerk is hereby directed to cause notice of the measure to be published once in an official newspaper of general circulation for the City of Foster City, in accordance with Section 12111 of the Elections Code and Section 6061 of the Government Code.

PASSED AND ADOPTED as a resolution of the City Council of the City of Foster City at the Regular Meeting held on the 15th day of July, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

PATRICK SULLIVAN, MAYOR
ATTEST:

PRISCILLA SCHAUS, CITY CLERK

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484

ORDINANCE NO. ___________

AN ORDINANCE OF THE CITY OF FOSTER CITY AMENDING SECTION 5.04.060 (CONSTITUTIONAL APPORTIONMENT) OF CHAPTER 5.04 (GENERAL PROVISIONS), SECTIONS 5.08.050 (GROSS RECEIPTS), 5.08.080 (SOLICITOR),

5.08.090 (SPECIALTY CONTRACTOR), AND 5.08.100 (SWORN STATEMENT) OF CHAPTER 5.08 (DEFINITIONS), AND SECTION 5.24.010 (RATES) OF CHAPTER 5.24 (GROSS RECEIPTS TAX), WITHIN SECTION I (BUSINESS LICENSES GENERALLY) OF TITLE 5 (BUSINESS LICENSES AND REGULATION) OF THE FOSTER CITY MUNICIPAL CODE TO UPDATE THE CITY’S BUSINESS LICENSE TAX

CITY OF FOSTER CITY

WHEREAS, the City of Foster City requires all businesses operating within the City of Foster City to obtain a business license and pay associated taxes in accordance with Title 5 – Business Licenses and Regulation of the Foster City Municipal Code (FCMC); and

WHEREAS, the City's Business License Tax (BLT) Ordinance was enacted in 1972, shortly after the City's incorporation; and

WHEREAS, the BLT Ordinance was last amended and a ballot measure (Measure U) to increase the BLT was approved by the Foster City voters in 2013; and

WHEREAS, Chapters 5.04 to 5.40 of FCMC Title 5 outline the provisions of the City's current BLT; and

WHEREAS, the current BLT model which the City follows is based on a gross receipts model with a single tax rate of $0.75 per $1,000 of gross receipts, utilizes a minimum tax of $100 ($200 for General Contractors) and a maximum tax ($28,597 based on FY 2023 licensing period); and

WHEREAS, under the current BLT model, a business has to gross more than approximately $33 million in gross receipts to pay the maximum tax; and

WHEREAS, the City is anticipating ongoing structural deficit in its budget over the next five years; and

WHEREAS, in recognition of the fiscal challenges facing the City and the City‘s commitment to provide uninterrupted services to the community, the City Council directed staff to consider an increase to the City’s BLT as a potential revenue enhancement option in 2022; and

WHEREAS, in 2023, one of the goals that the City Council adopted at its Vision & Policy Summit was to “Identify new revenue sources and strengthen existing resources to ensure Foster City finances are more resilient to economic fluctuations and support city services” and directed staff to research BLT methodologies and

6.1 Exhibit A Ordinance Model $1.00 rate (Attachment 2)

485

consider feasibility of various methodologies (e.g., gross receipts, square footage, employee count); and

WHEREAS, the City Council desires, to amend various sections of Chapters 5.04,

5.08, and 5.24 within Section I (Business License Generally) of Title 5 (Business Licenses and Regulations) of the FCMC, with the funds to be deposited in the City’s General Fund and to be used for locally controlled general fund purposes to protect Foster City’s financial stability and maintain essential services including but not limited to 911 emergency response, property crime prevention, street repairs, and infrastructure maintenance; and

WHEREAS, this ordinance is exempt from the California Environmental Quality Act (Public Resources Code §§ 21000 et seq., “CEQA,” and 14 Cal. Code Reg. §§ 15000 et seq., “CEQA Guidelines”). The tax to be submitted to the voters is a general tax that can be used for any legitimate governmental purpose; it is not a commitment to any particular action. As such, under CEQA Guidelines section 15378(b)(4), the tax is not a project within the meaning of CEQA because it creates a government funding mechanism that does not involve any commitment to any specific project that may result in a potentially significant physical impact on the environment.  Therefore, pursuant to CEQA Guidelines section 15060 CEQA analysis is not required; and

WHEREAS, the City Council believes that it is in the best interests of the City to submit the proposed amendments to the BLT to the voters of Foster City.

NOW, THEREFORE, THE PEOPLE OF THE CITY OF FOSTER CITY DO ORDAIN AS FOLLOWS:

Section 1. Amendment. Section 5.04.060 (Constitutional Apportionment) of Chapter 5.04 (General Provisions), Sections 5.08.050 (Gross Receipts), 5.08.080 (Solicitor), 5.08.090 (Specialty Contractor), and 5.08.100 (Sworn Statement) of Chapter 5.08 (Definitions), and Section 5.24.010 (Rates) of Chapter 5.24 (Gross Receipts Tax), within Section I (Business Licenses Generally) of Title 5 (Business Licenses and Regulation) of the Foster City Municipal Code are hereby amended as set forth in Exhibit1 which is attached hereto and incorporated herein by reference.

All other provisions of Chapters 5.04 through 5.40 within Section 1 (Business Licenses Generally) of Title 5 (Business Licenses and Regulation) not amended by this Ordinance remain in full force and effect.

Section 2. Audits. Proceeds resulting from the BLT shall be deposited into the City’s General Fund and become subject to the same audit requirements as other General Fund revenues. Any auditor’s report shall include an accounting of the revenues received from the BLT and shall be presented to the City Council annually and made available for public review.

Section 3. Severability. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity

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486

of the remaining portions of this Ordinance. The City Council hereby declares that it should have adopted the Ordinance and each section, subsection, sentence, clause, or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared unconstitutional.

Section 4. Effective Date. This Ordinance shall go into effect in accordance with Elections Code Section 9217and shall be deemed adopted and become effective only if approved by a majority of the eligible voters of the City of Foster City voting thereon, at an election to be held on November 5, 2024, and shall take effect ten (10) days after the City Council has certified the results of that election by resolution. The levying and collection of the BLT shall be as specified in Chapters 5.04 through 5.40 within Section I of Title 5 of the Foster City Municipal Code and as directed by the City Council.

PASSED AND ADOPTED by the voters of the City of Foster City this November 5, 2024.

It is hereby certified that this Ordinance was duly adopted by the voters at the November 5, 2024, election, and that the City Council declared the results of such election, in the manner required by law, at a meeting of the City Council held on December __, 2024 by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

APPROVED:

____________________________
Patrick Sullivan, Mayor

ATTEST:

__________________________
Priscilla Schaus, City Clerk

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487

EXHIBIT 1
A. Section 5.04.060 of Chapter 5.04 in Title 5 of the Foster City Municipal Code is hereby amended to read as follows:
“5.04.060 Constitutional apportionment.

A. No Undue Burden. None of the license taxes provided for by this article shall be so applied as to occasion an undue burden upon interstate commerce or to violate the equal protection and due process clauses of the Constitutions of the United States and the state of California. When, by reason of the provisions of the Constitution of the United States or the Constitution of California, the license fee imposed by this chapter cannot be enforced without there being an apportionment according to the amount of business done in the City or in the state, as the case may be, the City Manager or designee shall, in consultation with City Attorney Office, prepare and issue regulations with respect to apportionment and such regulations shall provide adequate notice.

B. Apportionment Appeal Rights. In any case where a license tax is believed by a licensee or applicant for a license to place an undue burden upon interstate commerce or to violate constitutional nexus requirements or other applicable law, the licensee or applicant may apply to the collector for an adjustment of the tax. Such application may be made before, at or within six months after payment of the prescribed license tax. The applicant shall, by sworn statement and supporting testimony, show the method of business and the gross volume or estimated gross volume of business and such other information as the collector may deem necessary to determine the extent, if any, of such undue burden or violation. The collector shall then conduct an investigation, and, upon the written approval of the city attorney, shall fix as the license tax for the applicant an amount that is reasonable and nondiscriminatory, or, if the license tax has already been paid, shall order a refund of the amount over and above the license tax so fixed. In fixing the license tax to be charged, the collector shall have the power to base the license tax upon a percentage of gross receipts or any other measure which will ensure that the license tax assessed shall be uniform with that assessed on businesses of like nature, so long as the amount assessed does not exceed the license tax as prescribed by this article. Should the collector determine the gross receipts measure of license tax to be the proper basis, he may require the applicant to submit, either at the time of termination of applicant’s business in the

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488

city or at the end of each three-month period, a sworn statement of the gross receipts and pay the amount of license tax therefor; provided, that no additional license tax during any one calendar year shall be required after the licensee has paid an amount equal to the annual license tax as prescribed in this article.”
B. Section 5.08.050 of Chapter 5.08 in Title 5 of the Foster City Municipal Code is hereby amended to read as follows:
“5.08.050 Gross receipts.

As used in this article, “gross receipts”, except as otherwise specifically provided, includes the total amounts attributable to business activity within the city actually received or receivable by a person from all sales of goods, materials, wares or merchandise, and the total amounts actually received or receivable by a person for the performance of any act or service, of whatever nature it may be, for which a charge is made or credit allowed, whether or not such act or service is done as a part of or in connection with the sale of materials, goods, wares or merchandise.

Included in “gross receipts” shall be all receipts, cash, credits, investment income, rental income, and proceeds from the sale of property of any kind or nature, without any deduction on account of the cost of the property sold, the cost of materials used, labor or service costs, interest paid or payable, or losses or other expenses whatsoever. The following are excluded from “gross receipts”:

A. A. Cash discounts allowed and taken on sales;
B. Transactions between a partnership and its partners; C. B. Credit allowed on property accepted as part of a purchase price and which property may later be sold;
D. C. Any tax required by law to be and is included in or added to the purchase price and collected from the consumer or purchaser;
E. D. Such part of the sale price of property returned by purchasers upon rescission of a contract of sale as is refunded either in cash or by credit; F. E. Amounts collected for others as an agent or trustee to the extent such amounts are paid to those for whom collected, provided the agent or trustee has furnished the collector with the names and addresses of the others and the amounts paid to them; G. F. That portion of the receipts of a business related to sales of goods or services to the city of Foster City;

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H. G. That portion of the receipts of a general contractor which represents payments to subcontractors; provided, that such subcontractors are licensed under this article and provided the general contractor furnishes the collector with the names and addresses of the subcontractors and the amounts paid each;
I. H. Receipts of refundable deposits, except that refundable deposits forfeited and taken into income shall not be excluded;
A. I. As to a real estate agent or broker, the sales price of real estate sold for the account of others except that portion which represents commission or other income to the agent or broker.

C. Sections 5.08.080 and 5.08.090 of Chapter 5.08 in Title 5 of the Foster City Municipal Code are hereby deleted in their entirety:

5.08.080 Solicitor.

As used in this article, “solicitor” means one who engages in the business of going from house to house, place to place or in or along the streets within the city, selling or taking orders for, or offering to sell or take orders for, goods, wares, merchandise or other things of value for future delivery, or for services to be performed in the future. (Ord. 572 § 1 Exh. A (part), 2013: Ord. 45 § 1 (part), 1972: prior code § 4-101(j))

5.08.090 Specialty contractor.

As used in this article, a “specialty contractor” is as defined in Section 7058 of the Business and Professions Code of the state as it now exists or may hereafter be amended. (Ord. 572 § 1 Exh.

A (part), 2013: Ord. 45 § 1 (part), 1972: prior code § 4-101(i)) D. Section 5.84.100 of Chapter 5.08 in Title 5 of the Foster City Municipal Code is hereby renumbered to be Section 5.08.080:
“5.08.100 080 Sworn statement.

As used in this article, “sworn statement” means an affidavit sworn before a person authorized to take oaths, or a declaration or certification made under penalty of perjury.

E. Section 5.24.000 of Chapter 5.24 in Title 5 of the Foster City Municipal Code is amended to read as follows:

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490

5.24.010 Rates.

Every person who engages in business at a fixed place of business within the city shall pay a license tax of seventy-five cents per one thousand dollars (or 0.075 percent) of gross receipts or part thereof subject to the following:Every person who engages in business at a fixed place of business within the city shall pay a license tax of one dollar per one thousand dollars (or 0.10 percent) of gross receipts or part thereof up to the maximum tax payment amount set forth in section 5.24.010 B. below:

For purposes of calculating the gross receipts, cents will be rounded up to the nearest dollar.

A. Minimum Tax. The minimum tax shall be as follows:

Effective
Date
General
Contractor
Specialty
Contractor
Solicitor All Other
Businesses
January
1, 2014
$100 $50 $50 $50
January
1, 2015
$150 $75 $75 $75
January
1, 2016,
and
thereafter
$200 $100 $100 $100
January
1, 2025,
and
thereafter
$200 $100
Effective January 1, 2026, and every January 1st thereafter, the minimum tax payment from the previous year shall be adjusted by the percentage change in the Consumer Price Index (All Urban Consumers) issued by the Bureau of Labor Statistics of the United States Department of Labor for the San Francisco-Oakland-San Jose, California, area (or any successor to that index) for the month of October immediately preceding, rounded to the nearest dollar amount.

6.1 Exhibit A Ordinance Model $1.00 rate (Attachment 2)

491

B. Maximum Tax PaymentGross Receipts Limit. The maximum amount of the tax to be paid isThe limit upon which the license tax shall be computed will be as follows:

1. Effective January 1, 2025, the maximum tax payment will be two hundred and fifty thousand dollars ($250,000).

2. Effective January 1, 2026, the maximum tax payment will be three hundred and fifty thousand dollars ($350,000).

3. Effective January 1, 2027, and thereafter, the maximum tax payment will be five hundred thousand dollars ($500,000).

1. Effective January 1, 2014, taxable gross receipts shall be limited to ten million dollars.

2. Effective January 1, 2015, taxable gross receipts shall be limited to twenty million dollars.

3. Effective January 1, 2016, taxable gross receipts shall be limited to thirty million dollars.

4. Effective January 1, 2017, and every January 1st thereafter, the taxable gross receipts limit shall be adjusted by the percentage change in the Consumer Price Index (All Urban Consumers) issued by the Bureau of Labor Statistics of the United States Department of Labor for the San Francisco-Oakland-San Jose, California, area (or any successor to that index) for the month of October immediately preceding, rounded to the nearest ten thousand dollars. 4.

Effective January 1, 2028, and every January 1st thereafter, the maximum tax payment from the previous year shall be adjusted by the percentage change in the Consumer Price Index (All Urban Consumers) issued by the Bureau of Labor Statistics of the United States Department of Labor for the San Francisco-Oakland-San Jose, California, area (or any successor to that index) for the month of October immediately preceding, rounded to the nearest thousand dollars.”

6.1 Exhibit A Ordinance Model $1.00 rate (Attachment 2)

492

2 3
4 1
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FOSTER CITY ORDERING

THE SUBMISSION TO THE QUALIFIED VOTERS OF THE CITY AT THE GENERAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 5, 2024, A MEASURE TO AMEND SECTION 5.04.060 (CONSTITUTIONAL APPORTIONMENT) OF CHAPTER 5.04 (GENERAL PROVISIONS), SECTIONS 5.08.050 (GROSS RECEIPTS), 5.08.080 (SOLICITOR), 5.08.090 (SPECIALTY CONTRACTOR), AND 5.08.100 (SWORN STATEMENT) OF CHAPTER 5.08 (DEFINITIONS), AND SECTION 5.24.010 (RATES) OF CHAPTER 5.24 (GROSS RECEIPTS TAX), WITHIN SECTION I (BUSINESS LICENSES GENERALLY) OF TITLE 5 (BUSINESS LICENSES AND REGULATION) OF

THE FOSTER CITY MUNICIPAL CODE, AUTHORIZING THE SUBMITTAL OF BALLOT ARGUMENTS IN FAVOR OF OR AGAINST OF THE MEASURE; PROVIDING FOR REBUTTAL ARGUMENTS; AND DIRECTING THE CITY ATTORNEY TO PREPARE AN

IMPARTIAL ANALYSIS

CITY OF FOSTER CITY
WHEREAS, the City of Foster City requires all businesses operating within the City of Foster City to obtain a business license and pay associated taxes in accordance with Title 5 – Business Licenses and Regulation of the Foster City Municipal Code (FCMC); and
WHEREAS, the City's Business License Tax (BLT) Ordinance was enacted in 1972, shortly after the City's incorporation; and
WHEREAS, the BLT Ordinance was last amended and a ballot measure (Measure U) to increase the BLT was approved by the Foster City voters in 2013; and WHEREAS, Chapters 5.04 to 5.40 of FCMC Title 5 outline the provisions of the City's current BLT; and
WHEREAS, the current BLT model which the City follows is based on a gross receipts model with a single tax rate of $0.75 per $1000 of gross receipts, utilizes a minimum tax of $100 ($200 for General Contractors) and a maximum tax ($28,597 based on FY 2023 licensing period); and
WHEREAS, under the current BLT model, a business has to gross more than approximately $33 million in gross receipts to pay the maximum tax; and WHEREAS, the City is anticipating ongoing structural deficit in its budget over the next five years; and
WHEREAS, in recognition of the fiscal challenges facing the City and the City‘s commitment to provide uninterrupted services to the community, the City Council directed staff to consider an increase to the City’s BLT as a potential revenue enhancement option in 2022; and
WHEREAS, in 2023, one of the goals that the City Council adopted at its Vision & Policy Summit was to “Identify new revenue sources and strengthen existing resources to ensure Foster City finances are more resilient to economic fluctuations and support city

6.1 Attachment 3 - Resolution for Model $1.25 rate with $500k maximum tax with corresponding Ordinance as Exhibit A

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2 3
4 1
services” and directed staff to research BLT methodologies and consider feasibility of various methodologies (e.g., gross receipts, square footage, employee count); and WHEREAS, the staff began to explore potential BLT models that could generate additional revenue and presented to City Council at various public meetings; and WHEREAS, at the July 15 public meeting, the City Council selected the BLT model retaining the minimum tax of $100 ($200 for General Contractors), with a maximum tax of $500,000, and a fixed gross receipt rate of $1.25 per thousand. In addition, the maximum tax increase be phased in over a three-year period, with both the minimum tax and maximum tax adjusted annually for inflation based on the local Consumer Price Index (CPI); and
WHEREAS, a proposed ordinance attached hereto and incorporated herein by reference as Attachment “A” (“the Ordinance”) would amend various sections of Chapters

5.04, 5.08 and 5.24 within Title 5 of FCMC revise the license tax on businesses operating in the City; and
WHEREAS, on June 3, 2024, the City Council approved City Resolution No. 2024-53 calling and giving notice of the holding of a General Municipal Election to be held on November 5, 2024 for the election of three members of the City Council as required by the provisions of the laws of the State of California relating to general law cities; and, WHEREAS, California Constitution Article XIIIC, Section 2, provides that no local government may increase any general tax unless and until that tax is submitted to the electorate and approved by a majority vote, and that a measure proposing to adopt a general tax must be consolidated with a regularly scheduled General Municipal Election for members of the City Council; and
WHEREAS, the City Council desires, to amend various sections of Chapters 5.04,

5.08, and 5.24 within Section I (Business License Generally) of Title 5 (Business Licenses and Regulations) of the FCMC, with the funds to be deposited in the City’s General Fund and to be used for locally controlled general fund purposes to protect Foster City’s financial stability and maintain essential services including but not limited to 911 emergency response, property crime prevention, street repairs, and infrastructure maintenance; and WHEREAS, the Foster City Council is authorized by California Elections Code Section 9222 and California Revenue and Taxation Code Section 7285.9 to place such a measure before the voters; and
WHEREAS, California Government Code Section 53724(b) authorizes the City Council to place such a tax measure before the voters subject to a two-thirds vote of all members of the legislative body; and
WHEREAS, California Elections Code section 9282 authorizes the filing of written arguments for and against measures placed on the ballot, with priority determined according to state law; and
WHEREAS, the approval of this Resolution is exempt from the California Environmental Quality Act (Public Resources Code §§ 21000 et seq., “CEQA,” and 14 Cal.

Code Reg. §§ 15000 et seq., “CEQA Guidelines”). The tax to be submitted to the voters is a general tax that can be used for any legitimate governmental purpose; it is not a commitment

6.1 Attachment 3 - Resolution for Model $1.25 rate with $500k maximum tax with corresponding Ordinance as Exhibit A

494

2 3
4 1
to any particular action. As such, under CEQA Guidelines section 15378(b)(4), the tax is not a project within the meaning of CEQA because it creates a government funding mechanism that does not involve any commitment to any specific project that may result in a potentially significant physical impact on the environment. Therefore, pursuant to CEQA Guidelines section 15060 CEQA analysis is not required; and
WHEREAS, it is desirable that the General Municipal Election be consolidated with the other county and state elections to be held on the same date, that within the city, precincts, polling places and election offices of the two elections to be the same, that the County Election Department of the County of San Mateo canvass the returns of the General Municipal Election, and that the election be held in all respects as if there were only one election.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Foster City that the City Council does hereby declare, determine and order as follows:

A. The above recitals are true and correct and incorporated herein as findings.

B. That the City Council finds and determines that this activity is not a “Project” as defined under Section 15378(b)(4) of the California Environmental Quality Act (CEQA) Guidelines because it is a financing decision without commitment to a specific project that may result in a potentially significant physical impact on the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the actions proposed are not subject to CEQA.

C. That pursuant to the requirements of the laws of the State of California relating to General Law Cities, there has been called and ordered to be held in the City of Foster City, California, on Tuesday, November 5, 2024, a General Municipal Election.

D. That the City Council, pursuant to its right and authority, hereby submits to the voters of the City and orders the following question submitted to the voters at the November 5, 2024 General Municipal Election:

City of Foster City Business License Tax Measure
Yes ￿
To protect Foster City’s financial stability and maintain essential services including 911 emergency response,
property crime prevention, street repairs, and infrastructure maintenance, shall an ordinance amending the business
license tax by increasing the rate by 50 cents to $1.25/$1000 of gross receipts, retaining the $100/$200 minimum tax and increasing the maximum tax payment both with annual inflation adjustments, generating approximately $1,900,000 annually for locally controlled general fund purposes, until ended by voters, be adopted?
No ￿
E. That the Ordinance to be placed before the voters is attached as Exhibit “A” hereto and incorporated into this resolution by reference. The “full text” of

6.1 Attachment 3 - Resolution for Model $1.25 rate with $500k maximum tax with corresponding Ordinance as Exhibit A

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2 3
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the proposed ordinance shall appear in the Voter Information Pamphlet.

F. That the City Clerk is directed to file certified copies of this Resolution with the Board of Supervisors and the Elections Office of the County of San Mateo, together with the attached ballot measure.

G. The City Clerk is directed to transmit a copy of the measure to the City Attorney, and City Attorney is directed to prepare an impartial analysis of the measure not exceeding 500 words showing the effect of the measure on the existing law and the operation of the measure and to file the analysis no later than August 20, 2024 with the City Clerk by 5:00 pm.

H. The City Council authorizes the Mayor or their designee(s) to file written argument(s) not exceeding 300 words regarding the City Measure as specified above, accompanied by the printed name(s) and signature(s) of the person(s) submitting it, in accordance with Article 4, Chapter 3, Section 9 of the California Elections Code. Primary Arguments must be submitted to the City Clerk not later than August 13, 2024 by 5:00 pm. If more than one argument for or against is received, the priorities established by Elections Code Section 9287 shall control. That pursuant to Sections 9220 and 9285 of the California Elections Code, when the City Clerk has selected arguments for and against the measure which will be printed and distributed to the voters, the City Clerk shall send copies of the argument in favor of the measure to the authors of the argument against, and copies of the argument against to the authors of the argument in favor.

I. The authors may prepare and submit rebuttal arguments not exceeding 250 words. A rebuttal argument may not be signed by more than five (5) authors.

Rebuttal arguments shall be printed in the same manner as the primary arguments. Each rebuttal argument shall immediately follow the primary argument which it seeks to rebut. Rebuttal Arguments must be submitted to the City Clerk not later than August 20, 2024 by 5:00 pm.

J. The measure requires a simple majority of the voters voting on the proposed measure to pass.

K. The City Clerk is authorized, instructed and directed to work with the County Elections Office as needed to properly and lawfully conduct the election on the measure. The ballots to be used in the election shall be in the form and content as required by law. The County Elections Office is authorized to canvass the returns of the General Municipal Election. In all particulars not recited in this Resolution, the election shall be held and conducted as provided by law for holding municipal elections.

L. The Board of Supervisors is requested to instruct the County Elections Office to provide such services as may be necessary for the holding of the consolidated election. The election shall be held in all respects as if there were only one election. The City acknowledges that the consolidated election will be held and conducted in the manner prescribed in Elections Code Section 10418. The City recognizes that the County will incur

6.1 Attachment 3 - Resolution for Model $1.25 rate with $500k maximum tax with corresponding Ordinance as Exhibit A

496

2 3
4 1
additional costs because of this consolidation and agrees to reimburse the County for those costs. The City Manager is hereby authorized and directed to expend the necessary funds to pay for the City’s cost of placing the measure on the election ballot.

M. The City Clerk is hereby directed to cause notice of the measure to be published once in an official newspaper of general circulation for the City of Foster City, in accordance with Section 12111 of the Elections Code and Section 6061 of the Government Code.

PASSED AND ADOPTED as a resolution of the City Council of the City of Foster City at the Regular Meeting held on the 15th day of July, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

PATRICK SULLIVAN, MAYOR
ATTEST:

PRISCILLA SCHAUS, CITY CLERK

6.1 Attachment 3 - Resolution for Model $1.25 rate with $500k maximum tax with corresponding Ordinance as Exhibit A

497

ORDINANCE NO. ___________

AN ORDINANCE OF THE CITY OF FOSTER CITY AMENDING SECTION 5.04.060 (CONSTITUTIONAL APPORTIONMENT) OF CHAPTER 5.04 (GENERAL PROVISIONS), SECTIONS 5.08.050 (GROSS RECEIPTS), 5.08.080 (SOLICITOR),

5.08.090 (SPECIALTY CONTRACTOR), AND 5.08.100 (SWORN STATEMENT) OF CHAPTER 5.08 (DEFINITIONS), AND SECTION 5.24.010 (RATES) OF CHAPTER 5.24 (GROSS RECEIPTS TAX), WITHIN SECTION I (BUSINESS LICENSES GENERALLY) OF TITLE 5 (BUSINESS LICENSES AND REGULATION) OF THE FOSTER CITY MUNICIPAL CODE TO UPDATE THE CITY’S BUSINESS LICENSE TAX

CITY OF FOSTER CITY

WHEREAS, the City of Foster City requires all businesses operating within the City of Foster City to obtain a business license and pay associated taxes in accordance with Title 5 – Business Licenses and Regulation of the Foster City Municipal Code (FCMC); and

WHEREAS, the City's Business License Tax (BLT) Ordinance was enacted in 1972, shortly after the City's incorporation; and

WHEREAS, the BLT Ordinance was last amended and a ballot measure (Measure U) to increase the BLT was approved by the Foster City voters in 2013; and

WHEREAS, Chapters 5.04 to 5.40 of FCMC Title 5 outline the provisions of the City's current BLT; and

WHEREAS, the current BLT model which the City follows is based on a gross receipts model with a single tax rate of $0.75 per $1,000 of gross receipts, utilizes a minimum tax of $100 ($200 for General Contractors) and a maximum tax ($28,597 based on FY 2023 licensing period); and

WHEREAS, under the current BLT model, a business has to gross more than approximately $33 million in gross receipts to pay the maximum tax; and

WHEREAS, the City is anticipating ongoing structural deficit in its budget over the next five years; and

WHEREAS, in recognition of the fiscal challenges facing the City and the City‘s commitment to provide uninterrupted services to the community, the City Council directed staff to consider an increase to the City’s BLT as a potential revenue enhancement option in 2022; and

WHEREAS, in 2023, one of the goals that the City Council adopted at its Vision & Policy Summit was to “Identify new revenue sources and strengthen existing resources to ensure Foster City finances are more resilient to economic fluctuations and support city services” and directed staff to research BLT methodologies and

6.1 Exhibit A Ordinance Model $1.25 rate (Attachment 3)

498

consider feasibility of various methodologies (e.g., gross receipts, square footage, employee count); and

WHEREAS, the City Council desires, to amend various sections of Chapters 5.04,

5.08, and 5.24 within Section I (Business License Generally) of Title 5 (Business Licenses and Regulations) of the FCMC, with the funds to be deposited in the City’s General Fund and to be used for locally controlled general fund purposes to protect Foster City’s financial stability and maintain essential services including but not limited to 911 emergency response, property crime prevention, street repairs, and infrastructure maintenance; and

WHEREAS, this ordinance is exempt from the California Environmental Quality Act (Public Resources Code §§ 21000 et seq., “CEQA,” and 14 Cal. Code Reg. §§ 15000 et seq., “CEQA Guidelines”). The tax to be submitted to the voters is a general tax that can be used for any legitimate governmental purpose; it is not a commitment to any particular action. As such, under CEQA Guidelines section 15378(b)(4), the tax is not a project within the meaning of CEQA because it creates a government funding mechanism that does not involve any commitment to any specific project that may result in a potentially significant physical impact on the environment.  Therefore, pursuant to CEQA Guidelines section 15060 CEQA analysis is not required; and

WHEREAS, the City Council believes that it is in the best interests of the City to submit the proposed amendments to the BLT to the voters of Foster City.

NOW, THEREFORE, THE PEOPLE OF THE CITY OF FOSTER CITY DO ORDAIN AS FOLLOWS:

Section 1. Amendment. Section 5.04.060 (Constitutional Apportionment) of Chapter 5.04 (General Provisions), Sections 5.08.050 (Gross Receipts), 5.08.080 (Solicitor), 5.08.090 (Specialty Contractor), and 5.08.100 (Sworn Statement) of Chapter 5.08 (Definitions), and Section 5.24.010 (Rates) of Chapter 5.24 (Gross Receipts Tax), within Section I (Business Licenses Generally) of Title 5 (Business Licenses and Regulation) of the Foster City Municipal Code are hereby amended as set forth in Exhibit 1 which is attached hereto and incorporated herein by reference.

All other provisions of Chapters 5.04 through 5.40 within Section 1 (Business Licenses Generally) of Title 5 (Business Licenses and Regulation) not amended by this Ordinance remain in full force and effect.

Section 2. Audits. Proceeds resulting from the BLT shall be deposited into the City’s General Fund and become subject to the same audit requirements as other General Fund revenues. Any auditor’s report shall include an accounting of the revenues received from the BLT and shall be presented to the City Council annually and made available for public review.

Section 3. Severability. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity

6.1 Exhibit A Ordinance Model $1.25 rate (Attachment 3)

499

of the remaining portions of this Ordinance. The City Council hereby declares that it should have adopted the Ordinance and each section, subsection, sentence, clause, or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared unconstitutional.

Section 4. Effective Date. This Ordinance shall go into effect in accordance with Elections Code Section 9217and shall be deemed adopted and become effective only if approved by a majority of the eligible voters of the City of Foster City voting thereon, at an election to be held on November 5, 2024, and shall take effect ten (10) days after the City Council has certified the results of that election by resolution. The levying and collection of the BLT shall be as specified in Chapters 5.04 through 5.40 within Section I of Title 5 of the Foster City Municipal Code and as directed by the City Council.

PASSED AND ADOPTED by the voters of the City of Foster City this November 5, 2024.

It is hereby certified that this Ordinance was duly adopted by the voters at the November 5, 2024, election, and that the City Council declared the results of such election, in the manner required by law, at a meeting of the City Council held on December __, 2024 by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

APPROVED:

____________________________
Patrick Sullivan, Mayor

ATTEST:

__________________________
Priscilla Schaus, City Clerk

6.1 Exhibit A Ordinance Model $1.25 rate (Attachment 3)

500

EXHIBIT 1
A. Section 5.04.060 of Chapter 5.04 in Title 5 of the Foster City Municipal Code is hereby amended to read as follows:
“5.04.060 Constitutional apportionment.

A. No Undue Burden. None of the license taxes provided for by this article shall be so applied as to occasion an undue burden upon interstate commerce or to violate the equal protection and due process clauses of the Constitutions of the United States and the state of California. When, by reason of the provisions of the Constitution of the United States or the Constitution of California, the license fee imposed by this chapter cannot be enforced without there being an apportionment according to the amount of business done in the City or in the state, as the case may be, the City Manager or designee shall, in consultation with City Attorney Office, prepare and issue regulations with respect to apportionment and such regulations shall provide adequate notice.

B. Apportionment Appeal Rights. In any case where a license tax is believed by a licensee or applicant for a license to place an undue burden upon interstate commerce or to violate constitutional nexus requirements or other applicable law, the licensee or applicant may apply to the collector for an adjustment of the tax. Such application may be made before, at or within six months after payment of the prescribed license tax. The applicant shall, by sworn statement and supporting testimony, show the method of business and the gross volume or estimated gross volume of business and such other information as the collector may deem necessary to determine the extent, if any, of such undue burden or violation. The collector shall then conduct an investigation, and, upon the written approval of the city attorney, shall fix as the license tax for the applicant an amount that is reasonable and nondiscriminatory, or, if the license tax has already been paid, shall order a refund of the amount over and above the license tax so fixed. In fixing the license tax to be charged, the collector shall have the power to base the license tax upon a percentage of gross receipts or any other measure which will ensure that the license tax assessed shall be uniform with that assessed on businesses of like nature, so long as the amount assessed does not exceed the license tax as prescribed by this article. Should the collector determine the gross receipts measure of license tax to be the proper basis, he may require the applicant to submit, either at the time of termination of applicant’s business in the city or at the end of each three-month period, a sworn statement of the gross receipts and pay

6.1 Exhibit A Ordinance Model $1.25 rate (Attachment 3)

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the amount of license tax therefor; provided, that no additional license tax during any one calendar year shall be required after the licensee has paid an amount equal to the annual license tax as prescribed in this article.”
B. Section 5.08.050 of Chapter 5.08 in Title 5 of the Foster City Municipal Code is hereby amended to read as follows:
“5.08.050 Gross receipts.

As used in this article, “gross receipts”, except as otherwise specifically provided, includes the total amounts attributable to business activity within the city actually received or receivable by a person from all sales of goods, materials, wares or merchandise, and the total amounts actually received or receivable by a person for the performance of any act or service, of whatever nature it may be, for which a charge is made or credit allowed, whether or not such act or service is done as a part of or in connection with the sale of materials, goods, wares or merchandise.

Included in “gross receipts” shall be all receipts, cash, credits, investment income, rental income, and proceeds from the sale of property of any kind or nature, without any deduction on account of the cost of the property sold, the cost of materials used, labor or service costs, interest paid or payable, or losses or other expenses whatsoever. The following are excluded from “gross receipts”:

A. A. Cash discounts allowed and taken on sales;
B. Transactions between a partnership and its partners; C. B. Credit allowed on property accepted as part of a purchase price and which property may later be sold;
D. C. Any tax required by law to be and is included in or added to the purchase price and collected from the consumer or purchaser;
E. D. Such part of the sale price of property returned by purchasers upon rescission of a contract of sale as is refunded either in cash or by credit; F. E. Amounts collected for others as an agent or trustee to the extent such amounts are paid to those for whom collected, provided the agent or trustee has furnished the collector with the names and addresses of the others and the amounts paid to them; G. F. That portion of the receipts of a business related to sales of goods or services to the city of Foster City;

6.1 Exhibit A Ordinance Model $1.25 rate (Attachment 3)

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H. G. That portion of the receipts of a general contractor which represents payments to subcontractors; provided, that such subcontractors are licensed under this article and provided the general contractor furnishes the collector with the names and addresses of the subcontractors and the amounts paid each;
I. H. Receipts of refundable deposits, except that refundable deposits forfeited and taken into income shall not be excluded;
A.J. I. As to a real estate agent or broker, the sales price of real estate sold for the account of others except that portion which represents commission or other income to the agent or broker.”
C. Sections 5.08.080 and 5.08.090 of Chapter 5.08 in Title 5 of the Foster City Municipal Code are hereby deleted in their entirety:

5.08.080 Solicitor.

As used in this article, “solicitor” means one who engages in the business of going from house to house, place to place or in or along the streets within the city, selling or taking orders for, or offering to sell or take orders for, goods, wares, merchandise or other things of value for future delivery, or for services to be performed in the future. (Ord. 572 § 1 Exh. A (part), 2013: Ord. 45 § 1 (part), 1972: prior code § 4-101(j))

5.08.090 Specialty contractor.

As used in this article, a “specialty contractor” is as defined in Section 7058 of the Business and Professions Code of the state as it now exists or may hereafter be amended. (Ord. 572 § 1 Exh.

A (part), 2013: Ord. 45 § 1 (part), 1972: prior code § 4-101(i)) D. Section 5.84.100 of Chapter 5.08 in Title 5 of the Foster City Municipal Code is hereby renumbered to be Section 5.08.080:
“5.08.080100 Sworn statement.

As used in this article, “sworn statement” means an affidavit sworn before a person authorized to take oaths, or a declaration or certification made under penalty of perjury.” E. Section 5.24.000 of Chapter 5.24 in Title 5 of the Foster City Municipal Code is amended to read as follows:

6.1 Exhibit A Ordinance Model $1.25 rate (Attachment 3)

503

“5.24.010 Rates.

Every person who engages in business at a fixed place of business within the city shall pay a license tax of seventy-five cents per one thousand dollars (or 0.075 percent) of gross receipts or part thereof subject to the following:Every person who engages in business at a fixed place of business within the city shall pay a license tax of one dollar and twenty-five cents per one thousand dollars (or 0.125 percent) of gross receipts or part thereof up to the maximum tax payment amount limit as stated set forth in section 5.24.010 B.below:

For purposes of calculating the gross receipts, cents will be rounded up to the nearest dollar.

A. Minimum Tax. The minimum tax shall be as follows:

Effective
Date
General
Contractor
Specialty
Contractor
Solicitor All Other
Businesses
January
1, 2014
$100 $50 $50 $50
January
1, 2015
$150 $75 $75 $75
January
1, 2016,
and
thereafter
$200 $100 $100 $100
January
1, 2025,
and
thereafter
$200 $100
Effective January 1, 2026, and every January 1st thereafter, the minimum tax payment from the previous year shall be adjusted by the percentage change in the Consumer Price Index (All Urban Consumers) issued by the Bureau of Labor Statistics of the United States Department of Labor for the San Francisco-Oakland-San Jose, California, area (or any successor to that index) for the month of October immediately preceding, rounded to the nearest dollar amount.

6.1 Exhibit A Ordinance Model $1.25 rate (Attachment 3)

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B. Maximum Tax Payment. The maximum amount of the tax to be paid is as follows:

1. Effective January 1, 2025, the maximum tax payment will be two hundred and fifty thousand dollars ($250,000)

2. Effective January 1, 2026, the maximum tax payment will be three hundred and fifty thousand dollars ($350,000)

3. Effective January 1, 2027, and thereafter, the maximum tax payment will be five hundred thousand dollars ($500,000).

1. Effective January 1, 2014, taxable gross receipts shall be limited to ten million dollars.

2. Effective January 1, 2015, taxable gross receipts shall be limited to twenty million dollars.

3. Effective January 1, 2016, taxable gross receipts shall be limited to thirty million dollars.

4. Effective January 1, 2017, and every January 1st thereafter, the taxable gross receipts limit shall be adjusted by the percentage change in the Consumer Price Index (All Urban Consumers) issued by the Bureau of Labor Statistics of the United States Department of Labor for the San Francisco-Oakland-San Jose, California, area (or any successor to that index) for the month of October immediately preceding, rounded to the nearest ten thousand dollars. 4.

Effective January 1, 2028, and every January 1st thereafter, the maximum tax payment from the previous year shall be adjusted by the percentage change in the Consumer Price Index (All Urban Consumers) issued by the Bureau of Labor Statistics of the United States Department of Labor for the San Francisco-Oakland-San Jose, California, area (or any successor to that index) for the month of October immediately preceding, rounded to the nearest thousand dollars.”

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RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FOSTER CITY ORDERING

THE SUBMISSION TO THE QUALIFIED VOTERS OF THE CITY AT THE GENERAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 5, 2024, A MEASURE TO AMEND SECTION 5.04.060 (CONSTITUTIONAL APPORTIONMENT) OF CHAPTER 5.04 (GENERAL PROVISIONS), SECTIONS 5.08.050 (GROSS RECEIPTS), 5.08.080 (SOLICITOR), 5.08.090 (SPECIALTY CONTRACTOR), AND 5.08.100 (SWORN STATEMENT) OF CHAPTER 5.08 (DEFINITIONS), AND SECTION 5.24.010 (RATES) OF CHAPTER 5.24 (GROSS RECEIPTS TAX), WITHIN SECTION I (BUSINESS LICENSES GENERALLY) OF TITLE 5 (BUSINESS LICENSES AND REGULATION) OF

THE FOSTER CITY MUNICIPAL CODE, AUTHORIZING THE SUBMITTAL OF BALLOT ARGUMENTS IN FAVOR OF OR AGAINST THE MEASURE; PROVIDING FOR REBUTTAL ARGUMENTS; AND DIRECTING THE CITY ATTORNEY TO PREPARE AN

IMPARTIAL ANALYSIS

CITY OF FOSTER CITY
WHEREAS, the City of Foster City requires all businesses operating within the City of Foster City to obtain a business license and pay associated taxes in accordance with Title 5 – Business Licenses and Regulation of the Foster City Municipal Code (FCMC); and
WHEREAS, the City's Business License Tax (BLT) Ordinance was enacted in 1972, shortly after the City's incorporation; and
WHEREAS, the BLT Ordinance was last amended and a ballot measure (Measure U) to increase the BLT was approved by the Foster City voters in 2013; and WHEREAS, Chapters 5.04 to 5.40 of FCMC Title 5 outline the provisions of the City's current BLT; and
WHEREAS, the current BLT model which the City follows is based on a gross receipts model with a single tax rate of $0.75 per $1000 of gross receipts, utilizes a minimum tax of $100 ($200 for General Contractors) and a maximum tax ($28,597 based on FY 2023 licensing period); and
WHEREAS, under the current BLT model, a business has to gross more than approximately $33 million in gross receipts to pay the maximum tax; and WHEREAS, the City is anticipating ongoing structural deficit in its budget over the next five years; and
WHEREAS, in recognition of the fiscal challenges facing the City and the City‘s commitment to provide uninterrupted services to the community, the City Council directed staff to consider an increase to the City’s BLT as a potential revenue enhancement option in 2022; and
WHEREAS, in 2023, one of the goals that the City Council adopted at its Vision & Policy Summit was to “Identify new revenue sources and strengthen existing resources to ensure Foster City finances are more resilient to economic fluctuations and support city services” and directed staff to research BLT methodologies and consider feasibility of

6.1 Attachment 4 - Resolution for Model 4X-2 with corresponding Ordinance as Exhibit A

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2 3
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various methodologies (e.g., gross receipts, square footage, employee count); and WHEREAS, the staff began to explore potential BLT models that could generate additional revenue and presented to City Council at various public meetings; and WHEREAS, at the July 15 public meeting, the City Council selected the BLT model retaining the minimum tax of $100 ($200 for General Contractors), with a maximum tax of $250,000, and varying tiered rates of $0.75 to $3.00 per $1000 of gross receipts. In addition, both the minimum tax and maximum tax be adjusted annually for inflation based on the local Consumer Price Index (CPI); and
WHEREAS, a proposed ordinance attached hereto and incorporated herein by reference as Attachment “A” (“the Ordinance”) would amend various sections of Chapters

5.04, 5.08 and 5.24 within Title 5 of FCMC and revise the BLT on businesses operating in the City; and
WHEREAS, on June 3, 2024, the City Council approved City Resolution No. 2024-53 calling and giving notice of the holding of a General Municipal Election to be held on November 5, 2024 for the election of three members of the City Council as required by the provisions of the laws of the State of California relating to general law cities; and, WHEREAS, California Constitution Article XIIIC, Section 2, provides that no local government may increase any general tax unless and until that tax is submitted to the electorate and approved by a majority vote, and that a measure proposing to adopt a general tax must be consolidated with a regularly scheduled General Municipal Election for members of the City Council; and
WHEREAS, the City Council desires, to amend various sections of Chapters 5.04,

5.08, and 5.24 within Section I (Business License Generally) of Title 5 (Business Licenses and Regulations) of the FCMC, with the funds to be deposited in the City’s General Fund and to be used for locally controlled general fund purposes to protect Foster City’s financial stability and maintain essential services including but not limited to 911 emergency response, property crime prevention, street repairs, and infrastructure maintenance; and WHEREAS, the Foster City Council is authorized by California Elections Code Section 9222 and California Revenue and Taxation Code Section 7285.9 to place such a measure before the voters; and
WHEREAS, California Government Code Section 53724(b) authorizes the City Council to place such a tax measure before the voters subject to a two-thirds vote of all members of the legislative body; and
WHEREAS, California Elections Code section 9282 authorizes the filing of written arguments for and against measures placed on the ballot, with priority determined according to state law; and
WHEREAS, the approval of this Resolution is exempt from the California Environmental Quality Act (Public Resources Code §§ 21000 et seq., “CEQA,” and 14 Cal.

Code Reg. §§ 15000 et seq., “CEQA Guidelines”). The tax to be submitted to the voters is a general tax that can be used for any legitimate governmental purpose; it is not a commitment to any particular action. As such, under CEQA Guidelines section 15378(b)(4), the tax is not a project within the meaning of CEQA because it creates a government funding mechanism

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that does not involve any commitment to any specific project that may result in a potentially significant physical impact on the environment. Therefore, pursuant to CEQA Guidelines section 15060 CEQA analysis is not required; and
WHEREAS, it is desirable that the General Municipal Election be consolidated with the other county and state elections to be held on the same date, that within the city, precincts, polling places and election offices of the two elections to be the same, that the County Election Department of the County of San Mateo canvass the returns of the General Municipal Election, and that the election be held in all respects as if there were only one election.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Foster City that the City Council does hereby declare, determine and order as follows:

A. The above recitals are true and correct and incorporated herein as findings.

B. That the City Council finds and determines that this activity is not a “Project” as defined under Section 15378(b)(4) of the California Environmental Quality Act (CEQA) Guidelines because it is a financing decision without commitment to a specific project that may result in a potentially significant physical impact on the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the actions proposed are not subject to CEQA.

C. That pursuant to the requirements of the laws of the State of California relating to General Law Cities, there has been called and ordered to be held in the City of Foster City, California, on Tuesday, November 5, 2024, a General Municipal Election.

D. That the City Council, pursuant to its right and authority, hereby submits to the voters of the City and orders the following question submitted to the voters at the November 5, 2024 General Municipal Election:

City of Foster City Business License Tax Measure
Yes ￿
To protect Foster City’s financial stability and maintain essential services including 911 emergency response,
property crime prevention, street repairs, and infrastructure maintenance, shall an ordinance amending the business
license tax with varying the rates from $0.75 to $3.00 per $1000 of gross receipts, retaining the $100/$200 minimum tax and increasing the maximum tax payment both with annual inflation adjustments, generating approximately $1,400,000 annually for locally controlled general fund purposes, until ended by voters, be adopted?
No ￿
E. That the Ordinance to be placed before the voters is attached as Exhibit “A” hereto and incorporated into this resolution by reference. The “full text” of the proposed ordinance shall appear in the Voter Information Pamphlet.

6.1 Attachment 4 - Resolution for Model 4X-2 with corresponding Ordinance as Exhibit A

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F. That the City Clerk is directed to file certified copies of this Resolution with the Board of Supervisors and the Elections Office of the County of San Mateo, together with the attached ballot measure.

G. The City Clerk is directed to transmit a copy of the measure to the City Attorney, and City Attorney is directed to prepare an impartial analysis of the measure not exceeding 500 words showing the effect of the measure on the existing law and the operation of the measure and to file the analysis no later than August 20, 2024 with the City Clerk by 5:00 pm.

H. The City Council authorizes the Mayor or their designee(s) to file written argument(s) not exceeding 300 words regarding the City Measure as specified above, accompanied by the printed name(s) and signature(s) of the person(s) submitting it, in accordance with Article 4, Chapter 3, Section 9 of the California Elections Code. Primary Arguments must be submitted to the City Clerk not later than August 13, 2024 by 5:00 pm. If more than one argument for or against is received, the priorities established by Elections Code Section 9287 shall control. That pursuant to Sections 9220 and 9285 of the California Elections Code, when the City Clerk has selected arguments for and against the measure which will be printed and distributed to the voters, the City Clerk shall send copies of the argument in favor of the measure to the authors of the argument against, and copies of the argument against to the authors of the argument in favor.

I. The authors may prepare and submit rebuttal arguments not exceeding 250 words. A rebuttal argument may not be signed by more than five (5) authors.

Rebuttal arguments shall be printed in the same manner as the primary arguments. Each rebuttal argument shall immediately follow the primary argument which it seeks to rebut. Rebuttal Arguments must be submitted to the City Clerk not later than August 20, 2024 by 5:00 pm.

J. The measure requires a simple majority of the voters voting on the proposed measure to pass.

K. The City Clerk is authorized, instructed and directed to work with the County Elections Office as needed to properly and lawfully conduct the election on the measure. The ballots to be used in the election shall be in the form and content as required by law. The County Elections Office is authorized to canvass the returns of the General Municipal Election. In all particulars not recited in this Resolution, the election shall be held and conducted as provided by law for holding municipal elections.

L. The Board of Supervisors is requested to instruct the County Elections Office to provide such services as may be necessary for the holding of the consolidated election. The election shall be held in all respects as if there were only one election. The City acknowledges that the consolidated election will be held and conducted in the manner prescribed in Elections Code Section 10418. The City recognizes that the County will incur additional costs because of this consolidation and agrees to reimburse the County for those costs. The City Manager is hereby authorized and directed

6.1 Attachment 4 - Resolution for Model 4X-2 with corresponding Ordinance as Exhibit A

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to expend the necessary funds to pay for the City’s cost of placing the measure on the election ballot.

M. The City Clerk is hereby directed to cause notice of the measure to be published once in an official newspaper of general circulation for the City of Foster City, in accordance with Section 12111 of the Elections Code and Section 6061 of the Government Code.

PASSED AND ADOPTED as a resolution of the City Council of the City of Foster City at the Regular Meeting held on the 15th day of July, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

PATRICK SULLIVAN, MAYOR
ATTEST:

PRISCILLA SCHAUS, CITY CLERK

6.1 Attachment 4 - Resolution for Model 4X-2 with corresponding Ordinance as Exhibit A

510

ORDINANCE NO. ___________

AN ORDINANCE OF THE CITY OF FOSTER CITY AMENDING SECTION 5.04.060 (CONSTITUTIONAL APPORTIONMENT) OF CHAPTER 5.04 (GENERAL PROVISIONS), SECTIONS 5.08.050 (GROSS RECEIPTS), 5.08.080 (SOLICITOR),

5.08.090 (SPECIALTY CONTRACTOR), AND 5.08.100 (SWORN STATEMENT) OF CHAPTER 5.08 (DEFINITIONS), AND SECTION 5.24.010 (RATES) OF CHAPTER 5.24 (GROSS RECEIPTS TAX), WITHIN SECTION I (BUSINESS LICENSES GENERALLY) OF TITLE 5 (BUSINESS LICENSES AND REGULATION) OF THE FOSTER CITY MUNICIPAL CODE TO UPDATE THE CITY’S BUSINESS LICENSE TAX

CITY OF FOSTER CITY

WHEREAS, the City of Foster City requires all businesses operating within the City of Foster City to obtain a business license and pay associated taxes in accordance with Title 5 – Business Licenses and Regulation of the Foster City Municipal Code (FCMC); and

WHEREAS, the City's Business License Tax (BLT) Ordinance was enacted in 1972, shortly after the City's incorporation; and

WHEREAS, the BLT Ordinance was last amended and a ballot measure (Measure U) to increase the BLT was approved by the Foster City voters in 2013; and

WHEREAS, Chapters 5.04 to 5.40 of FCMC Title 5 outline the provisions of the City's current BLT; and

WHEREAS, the current BLT model which the City follows is based on a gross receipts model with a single tax rate of $0.75 per $1,000 of gross receipts, utilizes a minimum tax of $100 ($200 for General Contractors) and a maximum tax ($28,597 based on FY 2023 licensing period); and

WHEREAS, under the current BLT model, a business has to gross more than approximately $33 million in gross receipts to pay the maximum tax; and

WHEREAS, the City is anticipating ongoing structural deficit in its budget over the next five years; and

WHEREAS, in recognition of the fiscal challenges facing the City and the City‘s commitment to provide uninterrupted services to the community, the City Council directed staff to consider an increase to the City’s BLT as a potential revenue enhancement option in 2022; and

WHEREAS, in 2023, one of the goals that the City Council adopted at its Vision & Policy Summit was to “Identify new revenue sources and strengthen existing resources to ensure Foster City finances are more resilient to economic fluctuations and support city services” and directed staff to research BLT methodologies and

6.1 Exhibit A Ordinance Model 4X-2 (Attachment 4)

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consider feasibility of various methodologies (e.g., gross receipts, square footage, employee count); and

WHEREAS, the City Council desires, to amend various sections of Chapters 5.04,

5.08, and 5.24 within Section I (Business License Generally) of Title 5 (Business Licenses and Regulations) of the FCMC, with the funds to be deposited in the City’s General Fund and to be used for locally controlled general fund purposes to protect Foster City’s financial stability and maintain essential services including but not limited to 911 emergency response, property crime prevention, street repairs, and infrastructure maintenance; and

WHEREAS, this ordinance is exempt from the California Environmental Quality Act (Public Resources Code §§ 21000 et seq., “CEQA,” and 14 Cal. Code Reg. §§ 15000 et seq., “CEQA Guidelines”). The tax to be submitted to the voters is a general tax that can be used for any legitimate governmental purpose; it is not a commitment to any particular action. As such, under CEQA Guidelines section 15378(b)(4), the tax is not a project within the meaning of CEQA because it creates a government funding mechanism that does not involve any commitment to any specific project that may result in a potentially significant physical impact on the environment.  Therefore, pursuant to CEQA Guidelines section 15060 CEQA analysis is not required; and

WHEREAS, the City Council believes that it is in the best interests of the City to submit the proposed amendments to the BLT to the voters of Foster City.

NOW, THEREFORE, THE PEOPLE OF THE CITY OF FOSTER CITY DO ORDAIN AS FOLLOWS:

Section 1. Amendment. Section 5.04.060 (Constitutional Apportionment) of Chapter 5.04 (General Provisions), Sections 5.08.050 (Gross Receipts), 5.08.080 (Solicitor), 5.08.090 (Specialty Contractor), and 5.08.100 (Sworn Statement) of Chapter 5.08 (Definitions), and Section 5.24.010 (Rates) of Chapter 5.24 (Gross Receipts Tax), within Section I (Business Licenses Generally) of Title 5 (Business Licenses and Regulation) of the Foster City Municipal Code are hereby amended as set forth in Exhibit 1 which is attached hereto and incorporated herein by reference.

All other provisions of Chapters 5.04 through 5.40 within Section 1 (Business Licenses Generally) of Title 5 (Business Licenses and Regulation) not amended by this Ordinance remain in full force and effect.

Section 2. Audits. Proceeds resulting from the BLT shall be deposited into the City’s General Fund and become subject to the same audit requirements as other General Fund revenues. Any auditor’s report shall include an accounting of the revenues received from the BLT and shall be presented to the City Council annually and made available for public review.

Section 3. Severability. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity

6.1 Exhibit A Ordinance Model 4X-2 (Attachment 4)

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of the remaining portions of this Ordinance. The City Council hereby declares that it should have adopted the Ordinance and each section, subsection, sentence, clause, or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared unconstitutional.

Section 4. Effective Date. This Ordinance shall go into effect in accordance with Elections Code Section 9217and shall be deemed adopted and become effective only if approved by a majority of the eligible voters of the City of Foster City voting thereon, at an election to be held on November 5, 2024, and shall take effect ten (10) days after the City Council has certified the results of that election by resolution. The levying and collection of the BLT shall be as specified in Chapters 5.04 through 5.40 within Section I of Title 5 of the Foster City Municipal Code and as directed by the City Council.

PASSED AND ADOPTED by the voters of the City of Foster City this November 5, 2024.

It is hereby certified that this Ordinance was duly adopted by the voters at the November 5, 2024, election, and that the City Council declared the results of such election, in the manner required by law, at a meeting of the City Council held on December __, 2024 by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

APPROVED:

____________________________
Patrick Sullivan, Mayor

ATTEST:

__________________________
Priscilla Schaus, City Clerk

6.1 Exhibit A Ordinance Model 4X-2 (Attachment 4)

513

EXHIBIT 1
A. Section 5.04.060 of Chapter 5.04 in Title 5 of the Foster City Municipal Code is hereby amended to read as follows:
“5.04.060 Constitutional apportionment.

A. No Undue Burden. None of the license taxes provided for by this article shall be so applied as to occasion an undue burden upon interstate commerce or to violate the equal protection and due process clauses of the Constitutions of the United States and the state of California. When, by reason of the provisions of the Constitution of the United States or the Constitution of California, the license fee imposed by this chapter cannot be enforced without there being an apportionment according to the amount of business done in the City or in the state, as the case may be, the City Manager or designee shall, in consultation with City Attorney Office, prepare and issue regulations with respect to apportionment and such regulations shall provide adequate notice.

B. Apportionment Appeal Rights. In any case where a license tax is believed by a licensee or applicant for a license to place an undue burden upon interstate commerce or to violate constitutional nexus requirements or other applicable law, the licensee or applicant may apply to the collector for an adjustment of the tax. Such application may be made before, at or within six months after payment of the prescribed license tax. The applicant shall, by sworn statement and supporting testimony, show the method of business and the gross volume or estimated gross volume of business and such other information as the collector may deem necessary to determine the extent, if any, of such undue burden or violation. The collector shall then conduct an investigation, and, upon the written approval of the city attorney, shall fix as the license tax for the applicant an amount that is reasonable and nondiscriminatory, or, if the license tax has already been paid, shall order a refund of the amount over and above the license tax so fixed. In fixing the license tax to be charged, the collector shall have the power to base the license tax upon a percentage of gross receipts or any other measure which will ensure that the license tax assessed shall be uniform with that assessed on businesses of like nature, so long as the amount assessed does not exceed the license tax as prescribed by this article. Should the collector determine the gross receipts measure of license tax to be the proper basis, he may require the applicant to submit, either at the time of termination of applicant’s business in the

6.1 Exhibit A Ordinance Model 4X-2 (Attachment 4)

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city or at the end of each three-month period, a sworn statement of the gross receipts and pay the amount of license tax therefor; provided, that no additional license tax during any one calendar year shall be required after the licensee has paid an amount equal to the annual license tax as prescribed in this article.

B. Section 5.08.050 of Chapter 5.08 in Title 5 of the Foster City Municipal Code is hereby amended to read as follows:

5.08.050 Gross receipts.

As used in this article, “gross receipts”, except as otherwise specifically provided, includes the total amounts attributable to business activity within the city actually received or receivable by a person from all sales of goods, materials, wares or merchandise, and the total amounts actually received or receivable by a person for the performance of any act or service, of whatever nature it may be, for which a charge is made or credit allowed, whether or not such act or service is done as a part of or in connection with the sale of materials, goods, wares or merchandise.

Included in “gross receipts” shall be all receipts, cash, credits, investment income, rental income, and proceeds from the sale of property of any kind or nature, without any deduction on account of the cost of the property sold, the cost of materials used, labor or service costs, interest paid or payable, or losses or other expenses whatsoever. The following are excluded from “gross receipts”:

A. A. Cash discounts allowed and taken on sales;
B. Transactions between a partnership and its partners; C. B. Credit allowed on property accepted as part of a purchase price and which property may later be sold;
D. C. Any tax required by law to be and is included in or added to the purchase price and collected from the consumer or purchaser;
E. D. Such part of the sale price of property returned by purchasers upon rescission of a contract of sale as is refunded either in cash or by credit; F. E. Amounts collected for others as an agent or trustee to the extent such amounts are paid to those for whom collected, provided the agent or trustee has furnished the collector with the names and addresses of the others and the amounts paid to them; G. F. That portion of the receipts of a business related to sales of goods or services to the city of Foster City;

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H. G. That portion of the receipts of a general contractor which represents payments to subcontractors; provided, that such subcontractors are licensed under this article and provided the general contractor furnishes the collector with the names and addresses of the subcontractors and the amounts paid each;
I. H. Receipts of refundable deposits, except that refundable deposits forfeited and taken into income shall not be excluded;
I. As to a real estate agent or broker, the sales price of real estate sold for the account of others except that portion which represents commission or other income to the agent or broker.” J.

C. Sections 5.08.080 and 5.08.090 of Chapter 5.08 in Title 5 of the Foster City Municipal Code are hereby deleted in their entirety:
“5.08.080 Solicitor.

As used in this article, “solicitor” means one who engages in the business of going from house to house, place to place or in or along the streets within the city, selling or taking orders for, or offering to sell or take orders for, goods, wares, merchandise or other things of value for future delivery, or for services to be performed in the future. (Ord. 572 § 1 Exh. A (part), 2013: Ord. 45 § 1 (part), 1972: prior code § 4-101(j))

5.08.090 Specialty contractor.

As used in this article, a “specialty contractor” is as defined in Section 7058 of the Business and Professions Code of the state as it now exists or may hereafter be amended. (Ord. 572 § 1 Exh.

A (part), 2013: Ord. 45 § 1 (part), 1972: prior code § 4-101(i))” D. Section 5.84.100 of Chapter 5.08 in Title 5 of the Foster City Municipal Code is hereby renumbered to be Section 5.08.080:
“5.08.080100 Sworn statement.

As used in this article, “sworn statement” means an affidavit sworn before a person authorized to take oaths, or a declaration or certification made under penalty of perjury”.

E. Section 5.24.000 of Chapter 5.24 in Title 5 of the Foster City Municipal Code is amended to read as follows:

6.1 Exhibit A Ordinance Model 4X-2 (Attachment 4)

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“5.24.010 Rates.

Every person who engages in business at a fixed place of business within the city shall pay a license tax of seventy-five cents per one thousand dollars (or 0.075 percent) of gross receipts or part thereof subject to the following:For tax years beginning on or after January 1, 2025, every person who engages in business at a fixed place of business within the city shall pay a license tax at the following rates to the maximum tax payment amount set forth in Section 5.24.010 B. below:
•A minimum of $200 for gross receipts between $0 and $267,000 for General Contractors or a minimum of $100 for gross receipts between $0 and $133,500 for all other businesses
•0.075% (75 cents per $1,000) for gross receipts between $133,500 and $4,400,000 •0.088% (88 cents per $1,000) for gross receipts between $4,400,001 and $8,500,000 •0.1% ($1 per $1,000) for gross receipts between $8,500,001 and $12,650,000 •0.113% ($1.13 per $1,000) for gross receipts between $12,650,001 and $16,750,000 •0.125% ($1.25 per $1,000) for gross receipts between $16,750,001 and $20,900,000 •0.138% ($1.38 per $1,000) for gross receipts between $20,900,001 and $25,000,000 •0.3% ($3.00 per $1,000) for gross receipts over $25,000,000 For purposes of calculating the gross receipts, cents will be rounded up to the nearest dollar.

These rates are subject to the following:

A. Minimum Tax. The minimum tax shall be as follows:

Effective
Date
General
Contract
or
Specialty
Contractor
Solicitor All Other
Business
es
January 1,
2014
$100 $50 $50 $50
January 1,
2015
$150 $75 $75 $75
January 1,
2016, and
thereafter
$200 $100 $100 $100

6.1 Exhibit A Ordinance Model 4X-2 (Attachment 4)

517

Effective
Date
General
Contract
or
Specialty
Contractor
Solicitor All Other
Business
es
January 1,
2025, and
thereafter
$200 $100 $100 $100
Effective January 1, 2026, and every January 1st thereafter, the minimum tax payment from the previous year shall be adjusted by the percentage change in the Consumer Price Index (All Urban Consumers) issued by the Bureau of Labor Statistics of the United States Department of Labor for the San Francisco-Oakland-San Jose, California, area (or any successor to that index) for the month of October immediately preceding, rounded to the nearest dollar amount.

B. Maximum Tax PaymentGross Receipts Limit. The limit upon which the license tax shall be computed will be as follows:

1. Effective January 1, 2014, taxable gross receipts shall be limited to ten million dollars.

2. Effective January 1, 2015, taxable gross receipts shall be limited to twenty million dollars.

3. Effective January 1, 2016, taxable gross receipts shall be limited to thirty million dollars.

4. Effective January 1, 2017, and every January 1st thereafter, the taxable gross receipts limit shall be adjusted by the percentage change in the Consumer Price Index (All Urban Consumers) issued by the Bureau of Labor Statistics of the United States Department of Labor for the San Francisco-Oakland-San Jose, California, area (or any successor to that index) for the month of October immediately preceding, rounded to the nearest ten thousand dollars.

1. Effective January 1, 2025, the maximum tax payment will be two hundred and fifty thousand dollars ($250,000).

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2. Effective January 1, 2026, and every January 1st thereafter, the maximum tax payment from the previous year shall be adjusted by the percentage change in the Consumer Price Index (All Urban Consumers) issued by the Bureau of Labor Statistics of the United States Department of Labor for the San Francisco-Oakland-San Jose, California, area (or any successor to that index) for the month of October immediately preceding, rounded to the nearest thousand dollars.”

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12100 Wilshire Boulevard, Suite 350 | Los Angeles, CA 90025 Phone: (310) 828-1183 | Fax: (310) 453-6562
1999 Harrison St., Suite 2020 | Oakland, CA 94612
Phone: (510) 451-9521 | Fax: (510) 451-0384
TO City of Foster City
FROM Curt Below and Lucia Del Puppo
FM3 Research
RE: Business License Tax Business Survey Summary Memo
DATE July 4, 2024
FM3 research recently completed a survey of 52 Foster City businesses. i The results show that businesses widely view Foster City as a good place to do business and half expect their businesses to grow in the next few years.

However, many have reservations about the proposal to update the business license tax (BLT), and there is a strong preference to ensure that the majority of businesses currently paying the minimum BLT would see no change in what the pay.

The balance of this memo includes more detailed findings from that survey, with the first half more broadly focused on the Foster City business environment and the second half more narrowly focused on a proposal to update the City’s BLT.
•Businesses widely rate Foster City as a good place to do business. As shown in Figure 1, 69% of survey respondents said the City is an “excellent” or “good” place to do business. One in five (19%) said it is a “fair” place to do business and only one in ten said it is a “poor” place.

Figure 1: Rating Foster City as a Place to do Business
In general, would you say that Foster City is an excellent, good, fair, or poor place to do business? (n=52) Rating %
EXCELLENT/GOOD 69%
Excellent 27%
Good 42%
Fair 19%
Poor 10%
Don’t know 2%

6.1 Attachment 5 - Memo from FM3

520