Fountain Valley City Council
August 19, 2025

Visual Samples of Recommended Best Management Practice
Project Types – Tier 2
Dry Well Permeable/Pervious Pavement
Underground Infiltration /
Infiltration Gallery Vegetated Swale
Note: Photographs are for visualization purposes. Actual devices installed may be different depending on final procurement, site characteristics, final specifications, etc.

ATTACHMENT F

CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: August 19, 2025
Members of the City Council
SUBJECT: Approve Amendment No. 3 to CON-19-54 (1060) with DMS Facility Services LLC for Janitorial Services at City Offices & Facilities to extend the contract term by 27 months and increase the annual contract amount by 3.15% in the first year and by an additional 3.00% in the second year of the extension Three-Year Strategic Goals
☒ Enhance the culture and environment of “A Nice Place to Live” ☐ Achieve fiscal stability by evaluating processes, and attract and retain revenue producing businesses/opportunities
☐ Attract and retain quality staff through best practices and trends ☒ Maintain, build, and modernize infrastructure to support growth and future needs of the City
☐ Not applicable

EXECUTIVE SUMMARY
Staff is requesting that the City Council approve Amendment No. 3 to CON-19-54 (1060) with DMS Facility Services LLC for Janitorial Services at City Offices & Facilities to extend the contract term by 27 months and increase the annual contract amount by 3.15% in the first year and by an additional 3.00% in the second year of the extension.

The City’s current contract (CON-19-54) with DMS Facility Services LLC (DMS) for Janitorial Services at City Offices & Facilities will expire on September 30, 2025.

Per the contract terms, the City has the option to renew the contract, with contractor concurrence, for three (3) additional two-year periods on the same terms and conditions.

Amendment Nos. 1 and 2 renewed the contract for two (2) additional two-year periods, leaving one (1) two-year extension available to the City.

Public Works staff have managed the work performed by DMS over the past six (6) years of the contract and have been satisfied with their performance. After considering the City’s historical Request for Proposal results, current economic conditions, and the service provided by DMS, Public Works staff think that it is in the City's best interest to renew the existing contract. Therefore, staff wishes to extend the contract for a third two-year period, plus an additional three months for administrative purposes, through December 31, 2027.

Amendment No. 3 to CON-19-54 (1060)
August 19, 2025

Per the terms of the contract, DMS has agreed to extend the contract through December 31, 2027, and has requested an increase of 3.15% to the annual contract amount, which is an increase of $13,349.54, in the first year of the extension from October 1, 2025, through September 30, 2026; and an additional increase of 3.00% to the annual contract amount, which is an additional increase of $13,117.13, in the second year of the extension from October 1, 2026, through September 30, 2027. This averages out to a 4.70% increase, which is less than the 6.51% Consumer Price Index for All Urban Consumers (CPI-U) increase from June 2023 to June 2025.

DISCUSSION
The City of Fountain Valley utilizes contract janitorial services to maintain City offices and facilities in a clean, sanitary, and aesthetically pleasing condition.

In 2019, Public Works staff developed and issued a comprehensive RFP that detailed the scope of work for Janitorial Services at City Offices & Facilities. In addition to general janitorial services at twelve City facilities, twice-weekly trash porter service at the Sports Park, and regularly scheduled carpet cleaning at five buildings, the scope of work included increased vacuuming and carpet cleaning services to properly maintain and extend the life of the new carpet installed at the Senior Center, City Hall, and the Corporation Yard, as well as annual deep cleaning services at Fire Station Nos. 1 and 2.

On August 12, 2019, the City received four proposals in response to the competitive RFP. After City staff carefully evaluated the proposals to determine which contractor would provide the best value to the City, City Council awarded a contract (CON-19-54) to DMS Facility Services LLC (DMS) in the annual amount of $378,466 on September 17, 2019. The contract term commenced on October 1, 2019, and continued through September 30, 2021.

Per the contract terms, the City has the option to renew the contract with contractor concurrence, for three (3) additional two-year periods on the same terms and conditions.

On September 21, 2021, City Council approved Amendment No. 1 to CON-19-54 (1060) which extended the contract term two years through September 30, 2023, and increased the annual contract amount by 2.29% ($8,652.49) in the first year and by an additional 2.74% ($10,621.03) in the second year of the extension. Amendment No. 1 also adjusted the scope of work for the floor care in Halls A, B, and C at the Senior Center and amended the hours during which the twice weekly trash can porter service at the Recreation Center and Sports Park occurs.

On August 15, 2023, City Council approved Amendment No. 2 to the contract which extended the term for an additional two-year period through September 30, 2025, and increased the annual contract amount by 3.22% ($12,805.48) in the first year and by an additional 3.25% ($13,353.00) in the second year of the extension.

The current term of the contract will expire on September 30, 2025.

Per the terms of the contract, the City has the option to renew the contract, with contractor concurrence, for a third two-year period on the same terms and conditions.

Amendment No. 3 to CON-19-54 (1060)
August 19, 2025

After considering the City’s historical Request for Proposal results, current economic conditions, and the service provided by DMS, Public Works staff thinks that it is in the best interest of the City to renew the existing contract. Public Works staff have managed all of the work performed by DMS over the past six years and have been satisfied with their performance. Therefore, staff wishes to extend the contract for a third two-year period, plus an additional three months for administrative purposes, through December 31, 2027.

DMS has agreed to extend the contract through December 31, 2027, and has requested an annual contract amount increase of 3.15% ($13,349.54) in the first year and an additional increase of 3.00% ($13,117.13) in the second year of the extension. This averages out to a

4.70% increase, which is less than the 6.51% Consumer Price Index for All Urban Consumers (CPI-U) increase from June 2023 to June 2025.

Per the terms of the contract, the compensation terms may be adjusted by a mutually agreeable amount, based on and no greater than the Consumer Price Index for All Urban Consumers (CPI-U) for Los Angeles-Long Beach-Anaheim, CA changes over the previous contract period. The June CPI data is released mid-July, making it the most recent data available to the Contractor prior to submitting their CPI adjustment request in writing to the City sixty days before the end of the then-current contract period, as required by the contract.

The scope of work will remain the same.

Continuing to provide janitorial services supports the City’s strategic goals of enhancing the culture and environment of “A Nice Place to Live” by maintaining City offices and facilities in a clean, sanitary, and aesthetically pleasing condition so they can be utilized and enjoyed by the community. Ongoing janitorial services also support the City’s strategic goal of maintaining infrastructure to support growth and future needs by extending the usable life of building fixtures by properly maintaining them.

FISCAL REVIEW
The annual cost of the amended contract is $437,247.54 in year one and $450,364.67 in year two of the extension. The pricing for the second year of the extension from October 1, 2026, through September 30, 2027, shall apply to the additional three months added to extend the term through December 31, 2027, adding $110,532.75 to the total value of the contract. The cost of the contract will be expensed to Government Buildings Service Contract accounts within the General Fund based on the facility being serviced as detailed below.

Amendment No. 3 to CON-19-54 (1060)
August 19, 2025

Annual Contract Cost Comparison
The full financial impact of the amended contract, outlined in red above, is $998,144.96 for the 27-month term.

FY 2025/26 Financial Impact
The current adopted budget for FY 25/26 allocates $439,894.00 for janitorial services at City offices and facilities. After factoring in the cost of janitorial services for July - September 2025 based on the current contract pricing and the cost of janitorial services for October 2025 - June 2026 based on DMS’s requested rate increase as reflected in Amendment No. 3, the total financial impact of CON-19-54 in FY 25/26 will be $434,028.12. Therefore, there are sufficient funds in the FY 25/26 budget to accommodate Amendment No. 3.

Amendment No. 3
Facility – Account # Current
Annual Cost
Eff. Oct. 1,
2024
Ext. Year 1
Annual Cost
Eff. Oct. 1,
2025
Ext. Year 2
Annual Cost
Eff. Oct. 1,
2026
Additional
3 Months
Oct. 1, 2027 –
Dec. 31, 2027
City Hall – 111.10.10000.53010
Janitorial Services $ 42,792.00 $ 44,113.44 $ 45,436.80 $ 11,359.20 Carpet Cleaning $ 2,206.00 $ 2,272.18 $ 2,340.34 $ 0.00 Corporation Yard – 111.50.50000.53010
Janitorial Services $ 34,548.00 $ 35,617.56 $ 36,686.16 $ 9,171.54 Carpet Cleaning $ 460.00 $ 690.00 $ 710.70 $ 0.00
Police Facility – 111.70.70000.53010
Janitorial Services $ 89,064.00 $ 91,821.24 $ 94,575.84 $ 23,643.96 Carpet Cleaning $ 1,612.00 $ 1,660.36 $ 1,710.18 $ 0.00 Recreation Center – 111.80.80000.53010
Janitorial Services $ 61,584.00 $ 63,486.84 $ 65,391.48 $ 16,347.87 Sports Park Outbuildings $122,520.00 $126,312.00 $130,101.12 $ 32,525.28 Carpet Cleaning $ 232.00 $ 238.96 $ 246.12 $ 0.00
Senior Center – 111.80.80001.53010
Janitorial Services $ 60,792.00 $ 62,669.64 $ 64,549.68 $ 16,137.42 Los Alamos Restrooms $ 5,076.00 $ 5,232.96 $ 5,389.92 $ 1,347.48 Carpet Cleaning $ 750.00 $ 802.50 $ 826.58 $ 0.00
Fire Station #1 – 111.60.60001.53010
Annual Deep Cleaning $ 1,279.00 $ 1,317.37 $ 1,356.89 $ 0.00 Fire Station #2 – 111.60.60002.53010
Annual Deep Cleaning $ 983.00 $ 1,012.49 $ 1,042.86 $ 0.00 Totals $423,898.00 $437,247.54 $450,364.67 $110,532.75
Amount of Increase $ 13,349.54 $ 13,117.13
Percentage Increase 3.15% 3.00%

Amendment No. 3 to CON-19-54 (1060)
August 19, 2025

FY 2026/27 Financial Impact
The current adopted budget for FY 26/27 allocates $462,891.00 for janitorial services at City offices and facilities. This budget allocation was an estimate based upon the current janitorial contract and projected increases per the terms of the contract. The total financial impact of CON-19-54 in FY 26/27 will be $447,145.34. Therefore, there are sufficient funds in the FY 26/27 budget to accommodate Amendment No. 3 to CON-19-54.

Facility
Account #
July 25 - Sept 25
Costs
Current Pricing
Oct 25 - June
26 Costs
(Amend 3.)
FY 25/26 Total
Costs
FY 25/26
Budget
City Hall & Council Chambers
111.10.10000.53010 $10,698.00 $35,357.26 $46,055.26 $46,714.00 Corporation Yard
111.50.50000.53010 $8,637.00 $27,403.17 $36,040.17 $36,327.00 Police Facility
111.70.70000.53010 $22,266.00 $70,526.29 $92,792.29 $94,097.00 Recreation Center / Sports
Park
111.80.80000.53010
$46,026.00 $142,588.09 $188,614.09 $191,253.00
Senior Center / Los Alamos
Park Restrooms
111.80.80001.53010
$16,467.00 $51,729.45 $68,196.45 $69,127.00
Fire Station No. 1
111.60.60001.53010 $0.00 $1,317.37 $1,317.37 $1,343.00
Fire Station No. 2
111.60.60002.53010 $0.00 $1,012.49 $1,012.49 $1,033.00
Total $104,094.00 $329,934.12 $434,028.12 $439,894.00
Facility
Account #
July 26 - Sept
26 Costs
(Amend. 3)
Oct 26 – June
27 Costs
(Amend. 3)
FY 26/27 Total
Costs
FY 26/27
Budget
City Hall & Council Chambers
111.10.10000.53010 $11,028.36 $36,417.94 $47,446.30 $49,050.00 Corporation Yard
111.50.50000.53010 $8,904.39 $28,225.32 $37,129.71 $38,144.00 Police Facility
111.70.70000.53010 $22,955.31 $72,642.06 $95,597.37 $98,803.00 Recreation Center / Sports Park
111.80.80000.53010 $47,449.71 $146,865.57 $194,315.28 $201,816.00 Senior Center / Los Alamos
Park Restrooms
111.80.80001.53010
$16,975.65 $53,281.28 $70,256.93 $72,583.00
Fire Station No. 1
111.60.60001.53010 $0.00 $1,356.89 $1,356.89 $1,411.00
Fire Station No. 2
111.60.60002.53010 $0.00 $1,042.86 $1,042.86 $1,084.00
Total $107,313.42 $339,831.92 $447,145.34 $462,891.00

Amendment No. 3 to CON-19-54 (1060)
August 19, 2025

FY 2027/28 Financial Impact
The financial impact of Amendment 3 for CON-19-54 in FY 27/28 will be $221,065.50. There is no adopted budget as of now for FY 27/28.

PUBLIC NOTIFICATION
Not applicable.

ENVIRONMENTAL IMPACT REVIEW
Not applicable.

ATTORNEY REVIEW:

The Attorneys for the City have reviewed and approved Amendment No. 3 to CON-19-54 (1060).

ALTERNATIVES:

Alternative No. 1: Approve Amendment No. 3 to CON-19-54 (1060) with DMS Facility Services LLC for Janitorial Services at City Offices & Facilities to extend the contract term by twenty-seven (27) months and increase the annual contract amount by 3.15% in the first year and by an additional 3.00% in the second year of the extension. This is the recommended action.

Alternative No. 2: Do not approve Amendment No. 3 to CON-19-54 (1060) with DMS Facility Services LLC, and direct staff to issue a Request for Proposal (RFP). This is not recommended as staff have been satisfied with the quality, cost-effectiveness, and overall efficiency Facility
Account #
July 27 - Dec 27 Costs
(Amend 3.) FY 27/28 Budget
City Hall & Council Chambers
111.10.10000.53010 $22,718.40 TBD
Corporation Yard
111.50.50000.53010 $18,343.08 TBD
Police Facility
111.70.70000.53010 $47,287.92 TBD
Recreation Center / Sports Park
111.80.80000.53010 $97,746.30 TBD
Senior Center / Los Alamos Park
Restrooms
111.80.80001.53010
$34,969.80 TBD
Fire Station No. 1
111.60.60001.53010 $0 TBD
Fire Station No. 2
111.60.60002.53010 $0 TBD
Total $221,065.50 TBD

Amendment No. 3 to CON-19-54 (1060)
August 19, 2025

of the janitorial services provided by DMS. The cost increase requested by DMS is modest, and staff believes that issuing an RFP would result in higher costs to the City, given current economic conditions and the City’s historical RFP results.

RECOMMENDATION
Staff is requesting City Council approval of Alternative No. 1 to approve Amendment No. 3 to CON-19-54 (1060) with DMS Facility Services LLC for Janitorial Services at City Offices & Facilities to extend the contract term twenty-seven (27) months and increase the annual contract amount by 3.15% in the first year and by an additional 3.00% in the second year of the extension.

Prepared by: Cassandra Burkart, Management Aide
Reviewed by: Mark Sprague, Field Services Manager
Approved by: Scott Smith, Director of Public Works
Fiscal review by: Ryan Smith, Finance Director / City Treasurer Approved by: Maggie Le, City Manager
Attachment:

1. Amendment No. 3 to CON-19-54 (1060)

CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: August 19, 2025
Members of the City Council
Subject: Approval for a contract with Inland Fleet Solutions Inc. for a 34-month term, to provide as-needed maintenance and repair services for Fire Department apparatus.

Three-Year Strategic Goals
☐ Enhance the culture and environment of “A Nice Place to Live” ☐ Attract and retain revenue-producing businesses
☐ Achieve fiscal stability in accordance with the 20-Year Financial Plan ☐ Attract and retain quality staff
☒ Not applicable

EXECUTIVE SUMMARY
The Fire Department incurs approximately $150,000 annually on maintenance and repairs for its apparatus. Staff requests City Council approval to enter into a 34-month agreement with Inland Fleet Solutions Inc., at $115,00 annually, for as-needed fire apparatus maintenance and repairs starting September 1, 2025, and ending June 30, 2028. The contract also includes two (2) optional two-year extensions.

DISCUSSION
The Fire Department’s fleet includes two (2) frontline fire engines, one (1) frontline tractordrawn aerial (TDA) truck, two (2) reserve American LaFrance fire engines (purchased in 2001 and 2006), and one (1) California State OES HME fire engine. The frontline fire engines were purchased from Pierce in 2017 and 2023, and the TDA truck was purchased in 2020, also from Pierce. Regular maintenance and parts replacement are essential for ensuring the reliability and safety of the fire apparatus.

The current contract for Fire Apparatus Maintenance and Repairs with SVT Fleet Solutions-who acquired our previous service provider, Southern California Fleet Services in January of 2024-will expire on September 1, 2025. In preparation, Fire Department Staff partnered with the Finance Department to develop and post a Request for Proposal (RFP) for Fire Apparatus Maintenance and Repairs on Planet Bids.

Approval of Agreement with Inland Fleet Solutions Inc.

August 19, 2025

Two (2) highly qualified vendors submitted proposals. A review committee-composed of three (3) Battalion Chiefs and the Finance Management Analyst/Purchasing Officer, evaluated the submissions. Inland Fleet Solutions Inc. (IFS) received the highest score and offered lower rates throughout the contract term. Both vendors provided services on the Fire Department's fleet during fiscal year 2024/25; however, Inland Fleet Solutions Inc. promptly initiated maintenance and repairs and issued accurate, transparent invoices. Additionally, several IFS fire mechanics and administrative personnel worked for our former apparatus service provider and are familiar with our fleet and operational expectations. Prompt and reliable services are essential for safe and efficient emergency response operations. Therefore, Staff recommend that the City approve a contract with Inland Fleet Solutions Inc. (IFS) for a 34-month term, with two optional two-year extensions, for as-needed fire apparatus maintenance and repairs.

FINANCIAL REVIEW
During fiscal year 2024/25, the Fire Department spent approximately $150,000 on fire apparatus preventative maintenance, parts, and repairs. Two unexpected major repairs accounted for nearly half of the fire apparatus maintenance budget. The Fire Department concluded fiscal year 2024/25 within budget for the Fire Department Apparatus Maintenance and Repair. In preparation for the adjustment to the current industry standard labor rates, account 100.60.60600.53010 was increased for fiscal year 25/26, which includes sufficient funding for this annual contract of $115,000.

PUBLIC NOTIFICATION
Not applicable.

ENVIRONMENTAL IMPACT REVIEW
Not applicable.

ATTORNEY REVIEW
The Attorney for the City has reviewed the contract.

ALTERNATIVES
Alternative No. 1: Approve the 34-month Apparatus Maintenance and Repair Contract with Inland Fleet Solutions Inc. for as-needed maintenance and repairs of the fire department apparatus.

Alternative No. 2: Do not approve as presented and provide direction to staff. This is not the recommended alternative.

Approval of Agreement with Inland Fleet Solutions Inc.

August 19, 2025

RECOMMENDATION
Staff are requesting the City Council's approval of Alternative No. 1 Prepared by: Matt Barr, Battalion Chief
Reviewed by: Tim Saiki, Acting Fire Chief
Fiscal Review by: Ryan Smith, Finance Director
Legal Review by: Colin Burns, Attorney for the City
Approved by: Maggie Le, City Manager
Attachment:

1. Inland Fleet Solutions Inc. Contract
Exhibit:

A. Revised scope of services and payment terms

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AGREEMENT FOR CONSULTANT SERVICES
CON – –
Fire Apparatus Service & Maintenance
This AGREEMENT is made and effective as of the EFFECTIVE DATE, by and between the City of Fountain Valley, a municipal corporation ("CITY") and Inland Fleet Solutions Inc. ("CONSULTANT"). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows:

1. TERM
This AGREEMENT shall commence on September 1, 2025 (“EFFECTIVE DATE”) and remain and continue in effect until all tasks described herein are completed but in no event later than June 30, 2028 , unless sooner terminated or extended pursuant to the provisions of this AGREEMENT. Notwithstanding this limit on term, some duties and obligations may survive the termination, lapse, or completion of this AGREEMENT.

2. SERVICES
CONSULTANT shall perform the tasks described and set forth in Exhibit A, attached hereto and incorporated herein as though set forth in full. CONSULTANT shall complete the tasks according to the schedule of performance which is also set forth in Exhibit A.

3. NOTICE TO PROCEED
CONSULTANT shall not perform any work or be entitled to any compensation under this AGREEMENT until a written Notice to Proceed is issued by CITY. The Notice to Proceed shall not issue unless and until CONSULTANT submits proof, satisfactory to CITY, of its procurement of appropriate insurance required by this AGREEMENT. The failure of CONSULTANT to submit proof of appropriate insurance within 10 days of the EFFECTIVE DATE is a material breach and shall constitute cause for immediate termination of this AGREEMENT by CITY.

4. PERFORMANCE
CONSULTANT shall at all times faithfully, competently, and to the best of their ability, experience, and talent perform all tasks described herein. CONSULTANT shall employ, at a minimum, generally accepted standards and practices utilized by persons engaged in providing similar services as are required of CONSULTANT hereunder in meeting its obligations under this AGREEMENT.

5. CITY MANAGEMENT
The Fire Chief shall represent CITY in all matters pertaining to the administration of this AGREEMENT, including review and approval of all products submitted by

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CONSULTANT, but not including the authority to enlarge the tasks to be performed or change the compensation due to CONSULTANT. The City Manager shall be authorized to act on CITY’S behalf and to execute all necessary documents that enlarge the tasks to be performed or change CONSULTANT's compensation, subject to Section 6 hereof.

6. PAYMENT
(a) CITY agrees to pay CONSULTANT in accordance with the payment rates, terms, and schedule of payment set forth in Exhibit A, attached hereto and incorporated herein by this reference as though set forth in full. This amount shall not exceed One Hundred and Fifteen Thousand Dollars ($115,000.00) (“TOTAL CONTRACT SUM”) for the total term of this AGREEMENT unless additional payment is approved as provided in this AGREEMENT.
(b) CONSULTANT shall not be compensated for any services rendered in connection with its performance of this AGREEMENT that are in addition to those set forth herein, unless such additional services are authorized in advance and in writing by the City Manager. This written authorization requirement cannot be waived.

CONSULTANT shall be compensated for any additional services in the amounts and in the manner as agreed to by the City Manager and CONSULTANT at the time CITY’s written authorization is given to CONSULTANT for the performance of said additional services. The City Manager’s authority to approve additional compensation is subject to Fountain Valley Municipal Code section 2.36.110. Approval of additional compensation that exceeds the City Manager’s authority as specified in Fountain Valley Municipal Code section 2.36.110 must be obtained from the City Council. (c) CONSULTANT shall submit reasonably detailed invoices monthly for actual services performed and, as applicable, equipment and materials acquired.

Invoices shall be submitted on or about the first business day of each month, for services provided in the previous month. Payment shall be made within thirty (30) days of receipt of each invoice as to all non-disputed fees. If the CITY disputes ant of CONSULTANT’s fees it shall give written notice to CONSULTANT within 30 days of receipt of an invoice of any disputed fess set forth on the invoice.

7. PUBLIC WORK
Notice is provided pursuant to Labor Code Section 1781 that all or a portion of the work contemplated in this AGREEMENT may constitute a “public work” as defined in Chapter 1, Part 7, and Division 2 of the Labor Code, to which Section 1771 applies.

If all or a portion of the work contemplated under this AGREEMENT constitutes “public work,” then CONSULTANT shall pay prevailing wages, unless exempt, on those portions of the work which require payment of prevailing wages under the prevailing wage laws (Labor Code, §§ 1720 et seq.), and shall comply with the following:
(a) Prevailing Wage Rates. Pursuant to Labor Code Section 1773.2, copies of the prevailing rate of per diem wages can be found at

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http://www.dir.ca.gov/OPRL/PWD/index.htm and are on file at City Hall, which shall be made available to any interested party upon request. CONSULTANT shall post a copy of the determination of the director of the prevailing rate of per diem wages at each job site. Said per diem wages are deemed to include employer payments for health and welfare, pension, vacation and travel time, and subsistence pay, all in accordance with Section 1773.1 of the Labor Code.
(b) Payroll Records. The provisions of Section 1776 of the Labor Code regarding the preparation, maintenance, and filing of payroll records are applicable to this AGREEMENT. CONSULTANT and each subconsultant shall 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 them in connection with the public work. Certified payroll records shall be on forms provided by the Division of Labor Standards Enforcement or contain the same information. CONSULTANT’S AND ANY SUBCONSULTANT’S PAYROLL RECORDS SHALL BE SUBMITTED TO CITY ON A WEEKLY BASIS. CONSULTANT SHALL BE RESPONSIBLE FOR SUBMITTAL OF SUBCONSULTANT’S PAYROLL RECORDS. Additionally, CONSULTANT or subconsultant has ten (10) days in which to comply subsequent to receipt of a written notice requesting the records enumerated in Section 1776, subdivision (a), of the Labor Code. In the event that CONSULTANT or subconsultant fails to comply within the ten (10) day period, they shall, as a penalty to CITY, forfeit One Hundred Dollars ($100.00) for each calendar day, or portion thereof, for each worker, until strict compliance is effectuated. CITY may deduct this penalty from any monies due or that may become due CONSULTANT under this AGREEMENT.
(c) Penalty. CONSULTANT and any subconsultant under CONSULTANT shall, as a penalty to CITY, forfeit not more than Two Hundred Dollars ($200.00) for each calendar day, or portion thereof, for each worker paid (either by CONSULTANT or any subconsultant under CONSULTANT) less than the prevailing rate set forth herein on the work provided for in this AGREEMENT. CITY may deduct the penalty from any monies due or that may become due CONSULTANT under this AGREEMENT. The difference between the prevailing wage rates and the amount paid to each worker for each calendar day, or portion thereof, for which each worker was paid less than the prevailing wage rate shall also be paid to each worker by CONSULTANT or subconsultant, in accordance with Section 1775 of the Labor Code of the State of California.
(d) Apprentices. If applicable, the provisions of Labor Code Section 1777.5 requiring the use of apprentices in certain ratios to journeymen are hereby imposed upon CONSULTANT.
(e) Legal Day’s Work. In the performance of this AGREEMENT, not more than eight (8) hours shall constitute a day’s work, and CONSULTANT shall not require more than eight (8) hours of labor in a day from any person employed by them hereunder except as provided in Labor Code Section 1815. CONSULTANT shall conform to

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Article 3, Chapter 1, Part 7 (Sections 1810 et seq.), of the Labor Code of the State of California, and it is agreed that CONSULTANT shall forfeit to CITY as a penalty the sum of Twenty-Five Dollars ($25.00) for each worker employed in the execution of this AGREEMENT by CONSULTANT or any subconsultant for each calendar day during which any worker is required or permitted to labor more than eight (8) hours in any one (1) calendar day and forty (40) hours in any one (1) week in violation of said article. CITY may deduct this penalty from any monies due or that may become due pursuant to this AGREEMENT.

8. SUSPENSION OR TERMINATION OF AGREEMENT WITHOUT CAUSE (a) CITY may at any time, for any reason, with or without cause, suspend or terminate this AGREEMENT, or any portion hereof, by serving upon CONSULTANT, at least thirty (30) days prior, written notice. CITY shall not be obligated to explain its reasons for termination. Upon receipt of said notice, CONSULTANT shall immediately cease all work under this AGREEMENT, unless the notice provides otherwise.

If CITY suspends or terminates a portion of this AGREEMENT such suspension or termination shall not make void or invalidate the remainder of this AGREEMENT. (b) In the event this AGREEMENT is suspended or terminated pursuant to this section, CITY shall pay to CONSULTANT the actual value of the work performed up to the time of suspension or termination, provided that the work performed is of value to CITY and consistent with the AGREEMENT. Upon suspension or termination of the AGREEMENT pursuant to this section, CONSULTANT will, as a precondition to being compensated, submit an invoice to CITY detailing work performed up to the time of suspension or termination.

9. DEFAULT OF CONSULTANT
(a) CONSULTANT's failure to comply with the provisions of this AGREEMENT shall constitute a material default. In the event that CONSULTANT is in default for cause under the terms of this AGREEMENT, CITY shall have no obligation or duty to continue compensating CONSULTANT for any work performed after the date of default and can terminate this AGREEMENT immediately by written notice to CONSULTANT. If such failure by the CONSULTANT to make progress in the performance of work hereunder arises out of causes beyond CONSULTANT's control, and without fault or negligence of CONSULTANT, it shall not be considered a default. (b) As an alternative to the procedure for immediate termination for default set forth in subparagraph (a), if CITY determines that CONSULTANT is in default in the performance of any of the terms or conditions of this AGREEMENT, CITY may in its discretion cause to be served upon CONSULTANT a written notice of the default and demand to cure. CONSULTANT shall have ten (10) calendar days after service upon it of said notice to cure the default by rendering a satisfactory performance. In the event that CONSULTANT fails to cure its default within such period of time, CITY shall have the right, notwithstanding any other provision of this AGREEMENT, to terminate this AGREEMENT without further notice and without prejudice to any other remedy to which it may be entitled at law, in equity, or under this AGREEMENT.

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10. OWNERSHIP OF DOCUMENTS
(a) CONSULTANT shall maintain complete and accurate records with respect to the plans, specifications, estimates, drawings, design calculations, letters, reports, testing results, and other such information including as-built records as required by CITY that relate to the performance of services under this AGREEMENT.

CONSULTANT shall maintain adequate records of services provided in sufficient detail to permit an evaluation of services. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. CONSULTANT shall provide free access to the representatives of CITY or its designees at reasonable times to such books and records; shall give CITY the right to examine and audit said books and records; shall permit CITY to make copies and transcripts therefrom as necessary; and shall allow inspection of all work, data, documents, proceedings, and activities related to this AGREEMENT. Such records, together with supporting documents, shall be maintained for a period of three (3) years after receipt of final payment. (b) Upon completion of, or in the event of termination, or suspension of this AGREEMENT, all original documents, plans, specifications, engineer’s estimates, computer files, and other documents prepared in the course of providing the services to be performed pursuant to this AGREEMENT shall become the sole property of CITY and may be used, reused, or otherwise disposed of by CITY without the permission of CONSULTANT. With respect to computer files, CONSULTANT shall make available to CITY, upon reasonable written request by CITY, the necessary computer software and hardware for purposes of accessing, compiling, transferring, and printing computer files.

11. INDEMNIFICATION
(a) Indemnification for Professional Liability. When the law establishes a professional standard of care for CONSULTANT’s services, to the fullest extent permitted by law, CONSULTANT shall indemnify, protect, defend, and hold harmless CITY and any and all of its officials, officers, employees, and agents (“INDEMNIFIED PARTIES”) from and against any and all losses, liabilities, damages, costs, and expenses, including attorney’s fees and costs to the extent the same are caused in whole or in part by any negligent or wrongful act, error, or omission of CONSULTANT, its officers, agents, employees, or subconsultants (or any entity or individual that CONSULTANT shall bear the legal liability thereof) in the performance of professional services under this AGREEMENT. With respect to the design of public improvements, CONSULTANT shall not be liable for any injuries or property damage resulting from the reuse of the design at a location other than that specified in this AGREEMENT without the written consent of CONSULTANT.

For all Consultant performances under this Agreement that are within the provision of design services as defined under California Civil Code Section 2782.8, the following shall apply: Notwithstanding any clause or provision in this Agreement or any other applicable Agreement to the contrary all specifically relating to design services and related performances to these design services, as specified, in California Civil Code

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Section 2782.8, Consultant agrees to indemnify and hold harmless (but not defend) the City, its officers, directors and employees from and against damages and costs that City is legally obligated to pay, to the extent caused by the negligent act, error or omission of the Consultant or anyone for whom the Consultant is legally responsible, subject to any limitations of liability contained in this Agreement. Consultant shall have liability for reasonable and necessary defense costs incurred by persons indemnified to the extent caused by Consultant’s negligence herein and recoverable under applicable law on account of negligence.

For all Consultant performances under this Agreement that are not for design services as defined under California Civil Code Section 2782.8 the following shall apply:

Consultant agrees to defend, indemnify, protect and hold harmless City, its officers, officials, employees, agents, attorneys, and volunteers from and against any and all claims, demands, losses, attorney fees, defense costs or expenses, or liability of any kind or nature which City, its officers, officials, employees, agents, attorneys and volunteers may sustain or incur or which may be imposed upon them for injury to or death of persons, or damage to property arising out of Consultant's negligent or wrongful acts or omissions in performing or failing to perform under the terms of this Agreement, excepting only liability arising out of the negligence or wrongful conduct of City, its officers, officials, consultants, employees, agents, attorneys and volunteers. (b) Indemnification for Other Than Professional Liability. Other than in the performance of professional services and to the full extent permitted by law, CONSULTANT shall indemnify, defend, protect and hold harmless CITY, and any and all of its employees, officials, officers, agents, and volunteers from and against any liability (including liability for claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses, or costs of any kind, whether actual, alleged, or threatened, including attorneys fees and costs, court costs, interest, defense costs, and expert witness fees), where the same arise out of, are a consequence of, or are in any way attributable to, in whole or in part, the performance of this AGREEMENT by CONSULTANT or by any individual or entity for which CONSULTANT is legally liable, including but not limited to officers, agents, employees, or subconsultants of CONSULTANT.
(c) General Indemnification Provisions. CONSULTANT agrees to obtain executed indemnity agreements with provisions identical to those set forth here in this section from each and every subconsultant or any other person or entity involved by, for, with or on behalf of CONSULTANT in the performance of this AGREEMENT.

In the event CONSULTANT fails to obtain such indemnity obligations from others as required here, CONSULTANT agrees to be fully responsible according to the terms of this section.

Failure of CITY to monitor compliance with these requirements imposes no additional obligations on CITY and will in no way act as a waiver of any rights hereunder. This obligation to indemnify and defend CITY as set forth here is binding on the successors, assigns, or heirs of CONSULTANT and shall survive the termination of this AGREEMENT or this section.

Nothing in this indemnity shall be construed as authorizing any award of attorney’s fees in any action on or to enforce the terms of this Indemnity or AGREEMENT. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable.

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(d) Indemnity Provisions for Contracts Related to Construction. This paragraph applies only when this AGREEMENT is related to construction. Without affecting the rights of CITY under any provision of this AGREEMENT, CONSULTANT shall not be required to indemnify and hold harmless CITY for liability attributable to the active negligence of CITY, provided such active negligence is determined by agreement between the parties or by the findings of a court of competent jurisdiction. In instances where CITY is shown to have been actively negligent and where CITY’s active negligence accounts for only a percentage of the liability involved, the obligation of CONSULTANT will be for that entire portion or percentage of liability not attributable to the active negligence of CITY.

This section shall survive the lapse, termination, or completion of this AGREEMENT.

12. INSURANCE
Prior to performing any work or receiving any compensation under this AGREEMENT, CONSULTANT shall obtain, and thereafter maintain for the duration of this AGREEMENT, insurance coverage as specified in Exhibit B, attached hereto and incorporated herein as though set forth in full. This duty or obligation shall survive the lapse, termination, or completion of this AGREEMENT.

13. WARRANTY FOR GOODS
(a) If this AGREEMENT includes the purchase of equipment, supplies, or chattel (hereafter “GOODS”), CONSULTANT shall provide the following warranty of said GOODS, or obtain a warranty from the manufacturer and/or retailer with provisions equal to or exceeding those specified in this Section. In the event the manufacturer’s warranty or retailer’s warranty do not equal or exceed the protections specified in this Section, CONSUTLANT agrees to provide said warranty protections.

The warranty described hereunder extends to the original purchaser of the GOODS warranted under the warranty, and to each transferee owner of the GOODS. The term of this warranty begins on the date the GOODS are delivered to CITY, and continues therefrom. CONSULTANT warrants that:
(1) The GOODS will function properly under normal use, will be of good workmanship, free from defect, of merchantable quality, and fit for CITY’s intended use;
(2) The GOODS will fully comply with any specifications provided by CITY and any samples or documentation provided by CONSULTANT; (3) The GOODS will be free of any security interests, liens, or encumbrances and CONSULTANT has title to the GOODS;
(4) The GOODS will not violate any intellectual property rights of any third party;
(5) The GOODS will be delivered free of the rightful claim of a third person by way of infringement; and

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(6) The GOODS are merchantable in accordance with Commercial Code Section 2314.
(b) The warranty listed above is in addition to any other warranties made by CONSULTANT, the manufacturer, retailer, or imposed by law. All warranties will survive inspection and payment by CITY and are assignable to CITY’s successors and assigns. If any GOODS do not meet the warranty, CITY may, at CITY’s option, and without additional cost to CITY:
(1) Require CONSULTANT to repair or replace the GOODS until the GOODS meet the warranty. If CONSULTANT cannot replace the GOODS and repair either is not commercially practicable or cannot be made within three (3) days, CONSULTANT will refund the purchase price;
(2) Return any of the GOODS to CONSULTANT at CONSULTANT’s expense for a full refund;
(3) Correct the nonconformance and charge CONSULTANT for the costs to make the correction; or
(4) Engage a third party to provide substitute GOODS and charge CONSULTANT for the costs of obtaining the substitute GOODS from the third party.

14. INDEPENDENT CONTRACTOR
(a) CONSULTANT is and shall at all times remain as to the CITY a wholly independent contractor having only the contractual duties and obligations agreed upon as memorialized in this AGREEMENT. The personnel performing the services under this AGREEMENT on behalf of CONSULTANT shall at all times be under CONSULTANT's exclusive direction and control. Neither CITY nor any of its officers, officials, employees, agents, or volunteers shall have control over the conduct of CONSULTANT or any of CONSULTANT's officers, employees, or agents, except as set forth in this AGREEMENT. CONSULTANT shall not at any time or in any manner represent that it or any of its officers, employees, or agents are in any manner officers, employees, or agents of the CITY. CONSULTANT shall not incur or have the power to incur any debt, obligation, or liability whatsoever against CITY, or bind CITY in any manner, whether in law or equity.
(b) No employee benefits shall be available to CONSULTANT in connection with the performance of this AGREEMENT. Except for the fees paid to CONSULTANT as provided in this AGREEMENT, CITY shall not pay, nor be deemed to have paid or delivered, salaries, wages, or other compensation to CONSULTANT for performing services hereunder for CITY. CITY shall not be liable for compensation or indemnification to CONSULTANT for injury or sickness arising out of performing services hereunder. In addition to the indemnification provisions of Section 11, CONSULTANT shall indemnify, defend, and hold CITY harmless from claims or liability arising from CONSULTANT’s employees for CITY benefits including, but not limited to,

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pension, health benefits, holiday, vacations, etc.

15. LEGAL RESPONSIBILITIES
CONSULTANT shall keep itself informed of State and Federal laws and regulations which in any manner affect i t s r e q u i r e m e n t s u n d e r t h i s A g r e e m e n t , a n d those employed by it or in any way affect the performance of its service, duties, and obligations pursuant to this AGREEMENT. CONSULTANT shall at all times observe and comply with all such laws and regulations. CITY, and its officers, officials, employees, agents, and volunteers shall not be liable at law or in equity occasioned by failure of CONSULTANT to comply with this Section. This section shall survive, without limitation, the termination, lapse or completion of this Agreement.

16. POLITICAL REFORM ACT
If the Political Reform Act requires CONSULTANT to file a Form 700, then CONSULTANT must file a Form 700 with full disclosure within 30 days of assuming office and thereafter must file an annual statement for each calendar year of this AGREEMENT.

17. UNDUE INFLUENCE
CONSULTANT declares and warrants that no undue influence or pressure is used against or in concert with any officer or employee of CITY in connection with the award, terms, or implementation of this AGREEMENT, including any method of coercion, confidential financial arrangement, or financial inducement. No officer or employee of the CITY will receive compensation, directly or indirectly, from CONSULTANT, or from any officer, employee, or agent of CONSULTANT, in connection with the award of this AGREEMENT or any work to be conducted as a result of this AGREEMENT. Violation of this section shall be a material breach of this AGREEMENT entitling CITY to any and all remedies at law or in equity.

18. NO BENEFIT TO ARISE TO LOCAL EMPLOYEES
No member, officer, or employee of CITY, or their designees or agents, and no public official who exercises authority over or responsibilities with respect to the project during their tenure or for one year thereafter, shall have any interest, direct or indirect, in any agreement or sub-agreement, or the proceeds thereof, for work to be performed in connection with this AGREEMENT.

19. RELEASE OF INFORMATION / CONFLICTS OF INTEREST
(a) All information gained by CONSULTANT in performance of this AGREEMENT shall be considered confidential and shall not be released by CONSULTANT without CITY’s prior written authorization. CONSULTANT, its officers, employees, agents, or subconsultants, shall not without written authorization from the City Manager or unless requested by the Attorney for the City, voluntarily provide declarations, letters of support, testimony at depositions, response to interrogatories, or other information

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concerning the work performed under this AGREEMENT or relating to any project or property located within the CITY. Response to a subpoena or court order shall not be considered “voluntary” provided CONSULTANT gives CITY notice of such court order or subpoena.
(b) CONSULTANT shall promptly notify CITY should CONSULTANT, its officers, employees, agents, or subconsultants be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, requests for admissions, or other discovery request, court order, or subpoena from any person or party regarding this AGREEMENT and the work performed thereunder or with respect to any project or property located within the CITY. CITY retains the right, but has no obligation, to represent CONSULTANT and/or be present at any deposition, hearing, or similar proceeding. CONSULTANT agrees to cooperate fully with CITY and to provide the opportunity to review any response to discovery requests provided by CONSULTANT. However, CITY's right to review any such response does not imply or mean the right by CITY to control, direct, or rewrite said response.

20. SECURITY OF INFORMATION
CONSULTANT shall identify reasonably foreseeable internal and external risks to the privacy and security of personal information acquired during performance of this AGREEMENT that could result in the unauthorized disclosure, misuse, alteration, destruction, or other compromise of the information. CONSULTANT shall regularly assess the sufficiency of any safeguards and information security awareness training in place to control reasonably foreseeable internal and external risks, and evaluate and adjust those safeguards in light of the assessment.

21. NOTICES
Any notices which either party may desire to give to the other party under this AGREEMENT must be in writing and may be given either by (i) personal service, (ii) delivery by a reputable document delivery service, such as but not limited to, Federal Express, which provides a receipt showing date and time of delivery, or (iii) mailing in the United States Mail, certified mail, postage prepaid, return receipt requested, addressed to the address of the party as set forth below or at any other address as that party may later designate by notice:

CITY CONSULTANT
City of Fountain Valley Inland Fleet Solutions Inc.
10200 Slater Avenue 42122 Rio Nedo Suite 107
Fountain Valley, CA 92708 Temecula, CA. 92590
Attn: City Clerk Attn: Kyle Ager (Owner)

22. ASSIGNMENT
CONSULTANT shall not assign the performance of this AGREEMENT, nor any part thereof, nor any monies due hereunder, without the prior written consent of

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CITY, which the CITY may grant or withhold in its sole and absolute discretion, with no obligation to disclose the basis for its decision to any person, firm, entity, or Party. ☐ [Check if Applicable] CONSULTANT shall provide CITY fourteen (14) days’ notice prior to the departure of any key personnel from CONSULTANT’s employ.

Should key personnel leave CONSULTANT’s employ, CITY shall have the option to immediately terminate this AGREEMENT, within three (3) days of the close of said notice period. Upon termination of this AGREEMENT, CONSULTANT’s sole compensation shall be payment for actual services performed up to, and including, the date of termination or as may be otherwise agreed to in writing between the City Council and CONSULTANT.
☐ [Check if Applicable] Because of the personal nature of the services to be rendered pursuant to this AGREEMENT, only Click or tap here to enter text. (“PRINCIPAL”) shall perform the services described in this AGREEMENT. PRINCIPAL may use assistants, under their direct supervision, to perform some of the services under this AGREEMENT. CONSULTANT shall provide CITY fourteen (14) day's notice prior to the departure of PRINCIPLE from CONSULTANT's employ. Should they leave CONSULTANT's employ, CITY shall have the option to immediately terminate this AGREEMENT, within three (3) days of the close of said notice period.

Upon termination of this AGREEMENT, CONSULTANT's sole compensation shall be payment for actual services performed up to, and including, the date of termination or as may be otherwise agreed to in writing between CITY and CONSULTANT.

23. LICENSES
At all times during the term of this AGREEMENT and prior to commencement of any work under this AGREEMENT, CONSULTANT shall have in full force and effect, all licenses required of it by law for the performance of the services described in this AGREEMENT including, but not limited to, a Fountain Valley business license.

24. GOVERNING LAW
CITY and CONSULTANT understand and agree that the laws of the State of California, or, as necessary, the laws of the United States Federal government, shall govern the rights, obligations, duties, and liabilities of the parties to this AGREEMENT and also govern the interpretation of this AGREEMENT. Any litigation concerning this AGREEMENT shall take place in Orange County Superior Court or Central District of California Federal District Court.

25. ENTIRE AGREEMENT
This AGREEMENT contains the entire understanding between the parties relating to the obligations of the parties described in this AGREEMENT. All prior or contemporaneous agreements, understandings, representations, and statements, oral or written, direct or implied, are merged into this AGREEMENT and shall be of no further force or effect. Each party is entering into this AGREEMENT based solely upon the representations set forth herein and upon each party's own independent investigation

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of any and all facts such party deems material. Each Party has had the opportunity to have this Agreement reviewed by independent legal counsel of its own selection and is not relying on any representations, opinions, or advice of the other Party.

26. CONTENTS OF REQUEST FOR PROPOSAL AND PROPOSAL
CONSULTANT is bound by the contents of CITY’s Request for Proposals and the contents of the Proposal submitted by CONSULTANT. In the event of conflict, this AGREEMENT shall take precedence over CITY’s Request for Proposals and CONSULTANT’s Proposal; and CITY’s Request for Proposals shall take precedence over CONSULTANT’s Proposal. No limitation of CONSULTANT’s liability, waiver of rights of CITY, or release of rights or remedies held by CITY, contained in CONSULTANT’s Proposal shall be of any force or effect.

27. INTERPRETATION
In the event of conflict or inconsistency between this AGREEMENT and any other document, including any proposal or Exhibit hereto, this AGREEMENT shall control unless a contrary intent is clearly stated. This AGREEMENT shall be interpreted as though drafted by all parties hereto.

28. MODIFICATION
No modification to this AGREEMENT shall be effective unless it is in writing and signed by authorized representatives of the parties hereto. The written modification requirement cannot be waived.

29. ATTORNEY FEES
In any action or proceeding brought by either party against the other party arising out of or in any way connected to this AGREEMENT, or where any provision hereof is validly asserted as a defense, the parties shall bear their own attorney’s fees, costs, and expenses. Nothing in this provision shall excuse CONSULTANT’s duty to provide CITY with a defense at CONSULTANT’s cost when CITY receives a complaint, petition, or other pleading from a third party requiring CITY to defend itself.

30. AUTHORITY TO EXECUTE THIS AGREEMENT
The person or persons executing this AGREEMENT on behalf of CONSULTANT warrants and represents that they have the authority to execute this AGREEMENT on behalf of CONSULTANT and have the authority to bind CONSULTANT to the performance of its obligations hereunder. CONSULTANT agrees that the person executing this AGREEMENT is an authorized agent of the CONSULTANT with the power to bind CONSULTANT to this AGREEMENT. ///
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IN WITNESS WHEREOF, the parties hereto have caused this AGREEMENT to be executed the day and year first above written.

CITY OF FOUNTAIN VALLEY CONSULTANT
Ted Bui, Mayor Signature
Kyle Ager
ATTEST: Typed Name
Owner
Title
Corporate seal (or attach Notary
Rick Miller, City Clerk
Approved as to Form:

HARPER & BURNS LLP acknowledgment)
Attorneys for the City

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Exhibit “A”
Scope of Services
And Payment Terms

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Exhibit “B”
Insurance Specifications

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EXHIBIT “B”

INSURANCE SPECIFICATIONS
Without limiting CONSULTANT’s indemnification of CITY, and prior to performing any work under this AGREEMENT or receiving any compensation, CONSULANT shall obtain, provide and maintain at its own expense during the term of this AGREEMENT, policies of insurance of the type and amounts described below and in a form that is satisfactory to CITY.

General liability insurance. CONSULTANT shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted. The policy shall name the City of Fountain Valley, and its officers, officials, employees, agents, and volunteers as additional insureds.

Garage Liability Insurance. CONSULTANT shall maintain commercial garage liability insurance with coverage at least as broad as Insurance Services Office form CA 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must cover all operations of the CONSULTANT related to garage activities and must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted. The policy shall name the City of Fountain Valley, and its officers, officials, employees, agents, and volunteers as additional insureds.

Automobile liability insurance. CONSULTANT shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of CONSULTANT arising out of or in connection with the work to be performed under this AGREEMENT, including coverage for any owned, hired, non-owned, or rented vehicles, in an amount not less than $1,000,000.00 combined single limit for each accident.

Umbrella or excess liability insurance. [If required to meet higher limits].

Umbrella liability insurance requirements. CONSULTANT shall obtain and maintain an umbrella liability insurance policy that offers comprehensive coverage. This policy must include coverage for bodily injury, personal injury, and property damage, and it should extend to encompass commercial general liability, automobile liability, and employer’s liability. The policy must incorporate the following terms and conditions:
• Drop-down feature. This feature activates if any primary insurance becomes partially or wholly uncollectible for any reason, excluding the bankruptcy or insolvency of the primary insurer.
• Claims handling. Coverage must be administered on a “pay on behalf of” basis, as opposed to reimbursement model, to ensure direct payment of claims

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by the insurer.
• Concurrency of coverage. The policy effective dates must align with those of the underlying primary insurance policies to ensure continuous coverage.

Excess liability insurance requirements. The CONSULTANT shall obtain and maintain an excess liability insurance policy. This policy must be structured to provide additional coverage over the CONSULTANT’s existing commercial general liability, automobile liability, and employer’s liability policies. The requirements for the policy are as follows:
 Follow-form coverage. The policy adheres strictly to the terms and conditions of the underlying policies, ensuring seamless integration of coverage.
 Drop-down provision. This provision states that the excess policy will respond as primary coverage in the event that the underlying insurer is unable to pay a claim due to insolvency, unless an insolvency exclusion specifically applies.
 Claims handling. Coverage must be administered on a “pay on behalf of” basis, as opposed to a reimbursement model, to ensure direct payment of claims by the insurer.
 Concurrency of coverage. The policy effective dates must align with those of the underlying policies to prevent any gaps in coverage.

Workers’ compensation insurance. CONSULTANT shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000 dollars). CONSULTANT shall submit to CITY, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of CITY, its officers, agents, employees, and volunteers.

Professional liability (errors & omissions) insurance. CONSULTANT shall maintain professional liability insurance that covers the services to be performed in connection with this AGREEMENT, in the minimum amount of $1,000,000 per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this AGREEMENT and CONSULTANT agrees to maintain continuous coverage through a period of no less than three years after completion of the services required by this AGREEMENT.

Garagekeepers Liability Insurance. CONSULTANT shall maintain garagekeepers liability insurance with coverage at least as broad as Insurance Services Office form CA 00 20, specifically designed to cover City vehicles under the care, custody, or control of the CONSULTANT. The insurance must provide coverage of not less than $500,000 per vehicle and $1,000,000 per location. The policy must cover damages to City vehicles due to conditions such as fire, theft, vandalism, or collision. Any endorsement that restricts coverage for these conditions will not be accepted.

Other provisions or requirements
Proof of insurance. CONSULTANT shall provide certificates of insurance and required endorsements to CITY as evidence of the insurance coverage required herein. Insurance

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certificates and endorsements must be approved by CITY prior to commencement of performance. Current certification of insurance shall be kept on file with CITY for the contract period and any additional length of time required thereafter. CITY reserves the right to require complete, certified copies of all required insurance policies, at any time.

Duration of coverage. CONSULTANT shall procure and maintain for the contract period and any additional length of time required thereafter, insurance against claims for injuries to persons or damages to property, or financial loss, which may arise from or in connection with the performance of the work hereunder by CONSULTANT, their agents, representatives, employees, or subconsultants/ subcontractors. If this AGREEMENT involves construction, CONSULTANT must maintain general liability and umbrella or excess liability insurance for as long as there is a statutory exposure to completed operations claims. CITY and its officers, officials, employees, and agents shall continue as additional insureds under such policies.

Primary/noncontributing. Coverage provided by CONSULTANT shall be primary and any insurance or self-insurance procured or maintained by CITY shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of CITY before the CITY’s own insurance or self-insurance shall be called upon to protect it as a named insured.

CITY’s rights of enforcement. In the event any policy of insurance required under this AGREEMENT does not comply with these specifications or is canceled and not replaced, CITY has the right but not the duty to obtain the insurance it deems necessary and any premium paid by CITY will be promptly reimbursed by CONSULTANT or CITY will withhold amounts sufficient to pay premium from CONSULTANT’s payments. In the alternative, CITY may cancel this AGREEMENT.

Acceptable insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by CITY.

Waiver of subrogation. With the exception of Professional Liability, all insurance coverage maintained or procured pursuant to this AGREEMENT shall be endorsed to waive subrogation against CITY, its elected or appointed officers, agents, officials, employees, and volunteers or shall specifically allow CONSULTANT or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. CONSULTANT hereby waives its own right of recovery against CITY and shall require similar written express waivers and insurance clauses from each of its subconsultants/subcontractors.

Enforcement of contract provisions (non estoppel). CONSULTANT acknowledges and agrees that any actual or alleged failure on the part of CITY to inform CONSULTANT

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of noncompliance with any requirement imposes no additional obligations on the CITY nor does it waive any rights hereunder.

Requirements not limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits on other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the CONSULTANT maintains higher limits than the minimums shown above, the CITY requires and shall be entitled to coverage for the higher limits maintained by the CONSULTANT. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the CITY.

Notice of cancellation. CONSULTANT agrees to oblige its insurance agent or broker and insurers to provide to CITY with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage. If any of the CONSULTANT’s insurers are unwilling to provide such notice, then Consultant shall have the responsibility of notifying the CITY immediately in the event of CONSULTANT’s failure to renew any of the required insurance coverages, or insurer’s cancellation or non-renewal.

Additional insured status. General liability, automobile liability, garage liability, garagekeepers liability, and umbrella/excess liability insurance policies shall provide or be endorsed to provide that CITY and its officers, officials, employees, agents, and volunteers shall be additional insureds under such policies.

Prohibition of undisclosed coverage limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to CITY and approved of in writing.

Separation of insureds. A severability of interests provision must apply for all additional insureds ensuring that Consultant’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’s limits of liability. The policy(ies) shall not contain any cross-liability exclusions.

Pass through clause. CONSULTANT agrees to ensure that its subconsultants, subcontractors, and any other party who is brought onto or involved in the project/service by CONSULTANT (hereinafter collectively “subcontractor”), provide the same minimum insurance coverage and endorsements required of CONSULTANT. CONSULTANT agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. However, in the event CONSULTANT’s subcontractor cannot comply with this requirement, which proof must be submitted to the CITY, CONSULTANT shall be required to ensure that its subcontractor provide and maintain insurance coverage and endorsements sufficient to the specific risk of exposure involved with subcontractor’s scope of work and services, with limits less than required of the CONSULTANT, but in all

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other terms consistent with the CONSULTANT’s requirements under this agreement. This provision does not relieve the CONSULTANT of its contractual obligations under the agreement and/or limit its liability to the amount of insurance coverage provided by its subcontractors. This provision is intended solely to provide CONSULTANT with the ability to utilize a subcontractor who may be otherwise qualified to perform the work or services but may not carry the same insurance limits as required of the CONSULTANT under this agreement given the limited scope of work or services provided by the subcontractor.

CONSULTANT agrees that upon request, all agreements with subcontractors, and others engaged in the project, will be submitted to CITY for review.

City’s right to revise specifications. CITY reserves the right at any time during the term of the AGREEMENT to change the amounts and types of insurance required by giving CONSULTANT ninety (90) days advance written notice of such change. If such change results in substantial additional cost to CONSULTANT, CITY and CONSULTANT may renegotiate CONSULTANT’s compensation.

Self-insured retentions. Any self-insured retentions must be declared to and approved by CITY. CITY reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible, or require proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention through confirmation from the underwriter. Self-insurance will not be considered to comply with these specifications unless approved by CITY.

Timely notice of claims. CONSULTANT shall give CITY prompt and timely notice of claims made or suits instituted that arise out of or result from CONSULTANT’s performance under this AGREEMENT, and that involve or may involve coverage under any of the required liability policies.

Additional insurance. CONSULTANT shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the work.

Exhibit “A”
Scope of Services And Payment Terms
This maintenance agreement includes full servicing of fire department apparatus as requested by the Fire Departments apparatus chief. Such services include, but are not limited to regular service and annual service per asset as described below.

Furthermore, the fire department fleet consists of engines and a tractor drawn aerial (TDA) as listed below; however, other equipment could be added to the fleet that would need maintenance and repairs. All services provided must be outlined within a proposal (quote) and approved by the Fire Departments apparatus chief or his/ her designee.

Regular Service
 DOT/BIT inspection
 Engine oil change
 Fuel system service
 Air filter replacement
 Check and top off all fluids
 Lube chassis
 Inspect ALL belts/hoses and replace as needed
 Any other items associated with this level of service Annual Service
 All items listed under Regular Service
 Annual fire pump test as required
 Annual aerial ladder UL inspection as required
 Wheels off inspection and evaluation of brakes, suspension, and chassis  Any other items associated with this level of service The following equipment currently make up the Fountain Valley Fire Department apparatus fleet:
• 8209-2006 American La France 1500 GPM pumper
• 8210-2001 American La France 1500 GPM pumper (rated at 1250 GPM) • 0284-2017 Pierce PUC 1500 GPM pumper
• 0320-2021 Pierce Tractor Drawn Aerial, 107 ft. Heavy duty ladder, 500 GPM pump
• 0328-2023 Pierce PUC 1500 GPM pumper

Field and Shop Rates
• Standard Maintenance and Inspection rate:
• Mobile labor rate:
• Emergency Repairs (After hours/Weekends):
• Annual Pump Test:
• Opacity Testing (smoke test) per unit:
• Parts:
$165.00/hr
$165.00/hr.
$195.00/hr.
$750.00
$250.00
Cost + 20%
Inland Fleet Solutions Inc. Will Provide the Following Services:
• Emergency Mobile Maintenance 24/7
• Pick-up/ Delivery of all vehicles in the fleet billed at an hourly rate + .70 per mile fuel surcharge.
• One stop shop which will sublet services that are handled in house. All costs associated with any repair in house or sublet will be billed through Inland Fleet Solutions Inc.
• When possible, order parts prior to apparatus being brought in for server to reduce out of service time
• Preventative maintenance, such as but not limited to, hose, belt and battery replacements, will be requested and approved by the Fire Departments apparatus chief
• A staff of qualified technicians shall be assigned to (Fountain Valley) equipment once received. With parts on site for a repair, Fountain Valley equipment will have a technician working on the equipment within the quoted labor hours approved by the department
• Work will not be delayed due to Inland Fleet Solutions Inc. staffing shortages for reasons such as, but not limited to, vacancies, mechanic classes, seminars, or overbooking of equipment
• An estimate of out of service time for all repair proposals submitted will be provided to the Fire Departments apparatus chief, or designee within 24 hours of receiving equipment

CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: August 19, 2025
Members of the City Council
SUBJECT: Group Home/Sober Living Home Enforcement Update Three-Year Strategic Goals
☒ Enhance the culture and environment of “A Nice Place to Live” ☐ Achieve fiscal stability by evaluating processes, and attract and retain revenue producing businesses/opportunities
☐ Attract and retain quality staff through best practices and trends ☐ Maintain, build, and modernize infrastructure to support growth and future needs of the City
☐ Not applicable

EXECUTIVE SUMMARY
Ordinance No. 1607 was adopted on March 1, 2024, establishing new regulations for Group Homes (GH) that are operating in the City of Fountain Valley. Sober Living Homes (SLH) are a type of GH functioning as a residential facility that offers a drug- and alcohol-free living environment for their residents where they can remain clean and sober and participate in a recovery program with a supportive, like-minded community.

The ordinance provided a one-year grace period for existing GH/SLHs to apply for and receive a Special Use Permit (SUP) or cease operations. The grace period ended on March 1, 2025, and the city began enforcement actions.

The purpose of this report is to provide an update on the current status of the GH/SLH enforcement and the Special Use Permit process and issuance status.

DISCUSSION
Community Outreach and Education
In March 2024, a campaign was initiated to educate GH/SLH operators and the community on the requirements to operate a GH/SLH in the city and the deadlines to either obtain a SUP or cease operations in accordance with the newly adopted ordinance. Town Halls and neighborhood meetings were conducted, GH/SLH information was updated on the city website, and suspected GH/SLH operators were contacted.

Group Home/Sober Living Home Enforcement Update
August 19, 2025

Staff had an initial database of 40 properties that were suspected of operating as GH/SLHs. In March 2024 and again in August 2024, SUP application packages were mailed to the identified properties advising them of the new GH/SLH requirements and the deadlines to apply for a permit or cease operations. As the community became educated about the new ordinance, the number of possible GH/SLHs in Fountain Valley grew to approximately 105 properties (please note that this is not the number of group/sober living homes currently operating in the City).

SUP Applications Received
The City received 17 SUP applications (one was withdrawn) in 2024 and 14 SUP applications in 2025 (one was withdrawn).

Public Hearings
Per the ordinance requirements, public hearings were conducted for each of the 2024 applicants. Twelve (12) SUP applications were approved, one (1) applicant withdrew and became a state-licensed facility, and four (4) applications were denied. Three (3) of the applications were denied due to being located within 650 feet of another SLH, which is a violation of the distance requirement between SLHs, and one (1) application was denied due to criminal convictions of the owner/operator.

Public Hearing dates for the 2025 applicants are pending.

State Licensed Facilities
Fountain Valley has nine (9) State Licensed Residential Substance Abuse Disorder Facilities (SAD). There are also three (3) Social Rehabilitation Facilities (SRF) and four (4) Adult Residential Facilities (ARF) in Fountain Valley. The SRFs and ARFs are often mis-identified by the public as SADs or SLHs, however the State of California does not identify them as SADs or SLHs. Because of this, the city may not use the proximity of SRF/ARF to an applicant facility, as cause for denial. The information is provided to the public specifically to make the distinction between GH/SLHs and SRF/ARFs.

Reasonable Accommodation Applications
Seven (7) Reasonable Accommodation applications were received. All were submitted by the same operator for seven (7) different locations. The applicant argued that residents of SLHs are recovering from drug/alcohol addiction and are therefore disabled under state and federal law. Their contention was that denial of a SUP with the sole reason that it was located within 650 ft of a state-licensed SAD or city-permitted SLH would be considered housing discrimination, and thereby illegal.

After consultation with the Office of the Attorney for the City, the applications were denied as unfounded, and the locations were required to obtain a SUP or cease operations. Because the one-year grace period had passed, the seven (7) properties returned to the pool of unpermitted GH/SLHs to be issued an administrative citation for operating in the city without a permit.

Group Home/Sober Living Home Enforcement Update
August 19, 2025

Citations Issued
Beginning in March 2025, code enforcement staff made a minimum of three(3) site visits to each suspected GH/SLH location that had not applied for a SUP to determine how the property was currently being used. Code enforcement was able to determine that several locations were state-licensed facilities, and several were not operating as a GH/SLHs. The remainder of the properties were subject to administrative citation for illegally operating in the city.

The Administrative Citation process consists of the issuance of three(3) citations, the first for $100, the second for $200, and the third for $500. When a citation is issued, the recipient has 15 days to file an appeal. Once three (3) citations have been issued, the case is referred to the Attorney for the City for further action.

Code enforcement has issued the mandatory three (3) administrative citations to 16 unpermitted GH/SLH properties. The 16 case files have been referred to the Attorney for the City for review. This includes one of the properties that applied for Reasonable Accommodation. The remaining Reasonable Accommodation applicants are in various stages of the administrative citation process, and if they do not apply for an SUP or cease operations, they will be referred to the Attorney for the City after three citations are issued. One (1) GH/SLH operator applied for a SUP after receiving two (2) citations.

The City Attorney’s Office has sent “Demand to Abate” notices to properties with three (3) administrative citations.

Appeals
One (1) property owner has appealed their administrative citation, and an Appeal Hearing was conducted on July 28, 2025. The Hearing Officer has taken the case under consideration and will make a ruling within 30 days.

Single Housekeeping Units
Twelve (12) alleged GH/SLHs claim that they are a single housekeeping unit and, per Fountain Valley Municipal Code (FVMC) 4.35.010, are exempt from the SUP requirement. The FVMC definition of “Single housekeeping unit” means that the occupants of a dwelling unit have established ties and familiarity with each other, jointly use common areas, interact with each other, share meals, household activities, and expenses and responsibilities.” In addition, to qualify as a “single housekeeping unit” the residential activities of the household must be conducted on a nonprofit basis, eliminating commercial SLH operators.

The 12 cases have been referred to the Attorney for the City for further legal review.

Determining whether a location is, or is not operating as a single housekeeping unit, is a difficult and time-consuming task. In these cases, code enforcement serves as an investigative arm at the direction of the Attorneys’ Office to gather additional evidence if needed to make a determination as to whether a residence is a single housekeeping unit.

Group Home/Sober Living Home Enforcement Update
August 19, 2025

Summary of Group and Sober Living Home Enforcement
Licensing Number
of Homes
Status
City Approved Special Use Permit 12
Special Use Permit Applications
Under Review 13 Pending Staff Review and Public Hearings State Licensed 9 Active state licenses
Requested Reasonable
Accommodation 7
Denied and Returned to Administrative
Citation process
Claiming Exemption as Single
House Keeping Unit 12 Referred to City Attorney
Forwarded to the City Attorney’s
Office 28
16 – Sent Demand to Abate notices
12 - Claiming single housekeeping
status sent to City Attorney
Number of Group/Sober Living
Homes No Longer Operating 31 Code Enforcement verified that use has either stopped or was never a GH/SLH Continued Enforcement
The number of complaints to code enforcement regarding the operation of GH/SLHs has drastically decreased since enforcement began in March 2025. Additionally, the public having a better understanding of the legal action the city can take, along with GH/SLH operators providing stricter management to their operations may have reduced the number of complaints received. Code enforcement staff continues to prioritize GH/SLH enforcement, and when new alleged GH/SLHs are identified, they are investigated and addressed as discussed in the report.

FISCAL REVIEW
There is no fiscal impact related to this item.

PUBLIC NOTIFICATION
Not applicable.

ENVIRONMENTAL IMPACT REVIEW
Not applicable.

ATTORNEY REVIEW
The Attorney(s) for the City have reviewed and approved this report.

Group Home/Sober Living Home Enforcement Update
August 19, 2025

ALTERNATIVES:

Alternative No. 1: Receive and file the Group Home/Sober Living Home Enforcement Update.

Alternative No. 2: Direct staff to take an alternate action.

RECOMMENDATION:

Staff recommends that the City Council approve Alternate No. 1.

Prepared by: Omar Dadabhoy, Deputy City Manager/Community Development Director
Approved by: Maggie Le, City Manager