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• Revise site development standards to decrease the minimum living area to 675 square feet for one bedroom units, 850 square feet for two bedroom units, and 1,025 square feet for three bedroom units, with an 175 square feet required for each additional bedroom beyond three (scheduled for 2024 updates).
Responsible Agency: Community Development/Planning
Objective: Amend the Development Code by October, 2025 unless otherwise noted for specific code amendment items. Then, annually monitor the effectiveness of the amended Development Code in addressing the following:
Emergency Shelters, Transitional Housing, and Supportive Housing Single-Room Occupancy
Low Barrier Navigation Centers
Timing: Code amendment in 2025
Funding sources: General Fund
Program 12 Employee Housing
Pursuant to Health and Safety Code section 17021.5, define and permit employee housing in compliance with the Employee Housing Act. Revise zoning to allow farmworker housing in all agricultural zones throughout the City.
Pursuant to Health and Safety Code section 17021.6, employee housing for six or fewer employees is treated as a single-family structure and permitted in the same manner as other dwellings of the same type in the same zone. Employee housing consisting of no more than 12 units or 36 beds to be permitted in the same manner as other agricultural uses in the same zone. Revise zoning to allow employee.
Responsible Agency: Community Development/Planning
Objective: Mitigate governmental constraints
Timing: Code Amendment 2024
Funding sources: General Fund
Program 13 Objective Standards
Pursuant to SB 330, adopt objective design standards to ensure development standards, design guidelines, and findings are objective, promote certainty in the planning and approval process.
Responsible Agency: Community Development/Planning
Objective: Mitigate governmental constraints
Timing: This amendment was completed by Ordinance 348 in 2023.
Funding sources: General Fund
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Program 14 Parcel Level Transparency
Pursuant to Assembly Bill 1483, the City will compile specific financial information, development standards, zoning information for each parcel to an easily accessible online location on the City’s website. The City will update its zoning and general plan maps to provide a high quality, parcelspecific reference.
Responsible Agency: Community Development/Planning
Objective: Mitigate governmental constraints
Timing: Code Amendment 2024
Funding sources: General Fund
Program 15 Permit Streamlining (SB 35 Compliance)
The City is adding a program to comply with the provisions of the Permit Streamlining Act (SB 35) to ensure that any applications submitted pursuant to the act are processed in accordance with state law. The City will establish and implement expedited permit processing for affordable housing projects, including projects that qualify for density bonuses (in compliance with SB 35 and SB 330).
Responsible Agency: Community Development/Planning
Objective: Mitigate governmental constraints
Timing: Code Amendment 2022
Funding sources: General Fund
Program 16 Ministerial Processing of Single Family Homes The City will revise the processing procedures for single family homes to shorten the approval process. The typical family home is currently subject to a discretionary approval and public hearing requirement.
The City will revise the zoning code so that single family homes that do not require a variance and are compliant with zoning and general plan designations are processed ministerially and are no longer subject to a public hearing requirement.
• Responsible Agency: Community Development/Planning
• Objective: Shortened review time of single family homes. • Timing: By the end of 2025.
• Funding sources: General Fund
Programs to Conserve and Improve Existing Housing Stock Program 17 Code Enforcement
The City will continue code enforcement efforts to maintain the value and safety of structures. The program addresses substandard structures, accumulation of trash and debris, inoperable vehicles,
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graffiti, and land use violations. Programs include, but are not limited to non-owner occupied inspection program, and exploring new methods for eliminating deteriorated or unsightly property conditions in residential areas. The City’s Code Enforcement Department operates on a reactive basis and investigates approximately 700 code cases annually. Based on code enforcement trends, the City estimates that approximately 20 cases annually will be inspected for a variety of safety issues. Code enforcement will investigate and provide information on housing assistance programs in such cases.
Additionally, the City’s Code Enforcement operates the City’s Non-Owner Occupied/Rental Property Program, which consists of an annual exterior inspection to ensure the property is maintained and to check if violations exist and are a habitual condition of the property. If violations are discovered during the exterior inspection, the property owner is notified and given ample time to make corrections. The inspections help to ensure the quality of the rental housing stock in the City. The City will continue to operate this program and will provide property owners with violations information on housing assistance and funding opportunities to improve their units (see Program 18 below).
To evaluate the current housing conditions provide a better understanding of the amount of substandard housing, the City will conduct a ground survey of a sample of units geographically spread throughout the City. At least 30 units across the City will be included, and the survey will be conducted by Q2 2026. A sample of this windshield survey is included in APPENDIX D:.
Responsible Agency: Community Development/Code Enforcement Objective: Maintenance and conservation; provide information on housing assistance to 30 households annually.
Geographic Targeting Northwestern area of the City
Timing: Ongoing throughout the planning period
Funding sources: Self-funding inspection fees
CDBG for enhanced services in CDBG census tracts
Program 18 Home Improvement
Neighborhood Housing Services of the Inland Empire (NHSIE) is a non-profit organization that operates a low-cost Homes N’ Hammer program designed to educate residents on minor home improvements and repairs. The four-hour workshop includes: functioning of the home’s major plumbing and electric systems, repair methods, replacing and maintaining drywall, replacing window screens, fixing garbage disposals, toilet mechanisms, health and safety issues and tips for hiring a professional contractor for home repairs, etc.
Neighborhood Partnership Housing Services, Inc. (NPHS) is a non-profit organization that operates a Healthy Homes Grant program. This program provides home safety repair grants to low-income senior homeowners and homeowners with permanent mobility disabilities.
Information on these programs will be provided on the City’s website, including web links to the NHSIE and NPHS websites, and posted biennially in the local newspaper. The City will reach out to NHSIE and NPHS during the planning period to explore partnership options for expanding
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programs in Grand Terrace and opportunities for the City to provide technical assistance to homeowners participating in these programs.
Responsible Agency: Community Development/Planning
Objective: Maintenance and conservation of at least 20 homes Timing: Schedule one workshop per year throughout the planning period; post information about these organizations biennially in the local newspaper.
Coordination with NHSIE and NPHS annually.
Geographic Targeting: 15% of assistance to households in the northwest area.
Funding sources: Private funding
AFFH Theme: Fair Housing Enforcement and Outreach, Place-based Improvements, Displacement Prevention
Program 19 Place-Based Improvements
The City has multiple projects in its Capital Improvements Plan identified to improve mobility, and active transportation opportunities, and park quality in the northwestern part of the City. The City will continue to prioritize the Capital Improvement Program and implement broader planning efforts, including seeking additional funding. This will serve to continue to improve communities through neighborhood improvements such as enhanced streetscapes, multi-modal and active transportation, pedestrian safety improvements, safe routes to schools, community facilities, park improvements, and other community amenities.
Specific efforts include:
• Street improvement and sidewalk repair ($1.3 million in pavement rehabilitation and $160,000 in neighborhood street lighting, sidewalk repair projects along Barton Road) • Upzoning to allow increased housing choice and opportunities private investment. • Geographic targeting of assistance programs in northwestern areas of the City.
Responsible Agency: Community Development/Planning
Objective: Improve lower resource areas of the City through CIP projects, with 20% of funding and improvements in the northwest portion of the City.
Implement at least two CIP projects during the planning period.
Geographic Targeting Northwestern area of the City
Timing: As planned in CIP schedule
Funding sources: CDBG, General Fund
AFFH Theme: Fair Housing Enforcement and Outreach, Housing Mobility, Placebased Improvements, Displacement Prevention
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Programs to Promote Equal Housing Opportunities
Program 20 Fair Housing Outreach and Resources
The City will advertise the services of and collaborate with the County’s contracted fair housing provider, currently the Inland Fair Housing and Mediation Board website. Advertise the information quarterly in the Blue Mountain Outlook. The City will provide information on fair housing on the City’s website.
To assist in the enforcement of fair housing laws, the City will make educational and training resources available to tenants, landowners, homeowners, and any other residents who may be affected by fair housing policy. These materials will include information on fair housing testing, arbitration, reporting health risks and discrimination, best rental practices, and more. The services will include fair housing presentations, mass media communications, and multilingual literature distribution. This will include a workshop at least twice in the planning period. The programs will use alternative formats for fair housing education workshops such as pre-taped videos and/ or recordings. Staff will distribute fair housing pamphlets provided by fair housing organizations at the public information counter at City Hall, at the Senior Center, on the City’s website, and at in person community events as appropriate.
Staff will continue to refer all fair housing complaints to the fair housing service provider.
The City will also participate in the Regional Analysis of Impediments to Fair Housing Choice, which is updated every five years. The City will work with the County to publicize the outreach program for the update.
Responsible Agency: Community Development/Planning
Objective: Provide workshops or information fairs with the County fair housing provider or another qualified fair housing provider at least twice in the planning period. Provide fair housing resources or referrals to 50 households annually.
Timing: Throughout the planning period
Funding sources: General Fund
AFFH Theme: Fair Housing Enforcement and Outreach
Program 21 Homeless Assistance and Coordination
The City will continue to participate in and provide staff support for the various homeless programs operated by the San Bernardino County Homeless Partnership, including participation in the Pointin-Time Homeless Survey.
Responsible Agency: Community Development/Planning
Objective: Support efforts to reduce homelessness
Timing: Ongoing throughout the planning period
Funding sources: General Fund, Filing fees
AFFH Theme: Place-based Improvements
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Quantified Objectives
The City’s quantified objectives for the development, rehabilitation and conservation of housing during the 2021-2029 planning period are summarized in Table 8.36. These objectives recognize the significant reductions in City resources in recent years due to the dissolution of redevelopment agencies and cuts to other housing programs at the county level.
Table 8.36
Summary of 2021-2029 Quantified Objectives
Income Category New Construction Rehabilitation Conservation Extremely Low* 95 0 0
Very Low-Income 94 2 5
Low-Income 92 3 5
Moderate-Income 106 0 5
Above Moderate 243 0 5
Totals 630 5 25
*Local jurisdictions are required to establish an objective for extremely-low-income households and may determine that 50% of the very-lowincome need is for extremely-low-income households.
State of California
HEALTH AND SAFETY CODE
Section 17021.5
17021.5. (a) Any employee housing which has qualified, or is intended to qualify, for a permit to operate pursuant to this part may invoke the provisions of this section. (b) Any employee housing providing accommodations for six or fewer employees shall be deemed a single-family structure with a residential land use designation for the purposes of this section. For the purpose of all local ordinances, employee housing shall not be included within the definition of a boarding house, rooming house, hotel, dormitory, or other similar term that implies that the employee housing is a business run for profit or differs in any other way from a family dwelling. No conditional use permit, zoning variance, or other zoning clearance shall be required of employee housing that serves six or fewer employees that is not required of a family dwelling of the same type in the same zone. Use of a family dwelling for purposes of employee housing serving six or fewer persons shall not constitute a change of occupancy for purposes of Part 1.5 (commencing with Section 17910) or local building codes. (c) Except as otherwise provided in this part, employee housing that serves six or fewer employees shall not be subject to any business taxes, local registration fees, use permit fees, or other fees to which other family dwellings of the same type in the same zone are not likewise subject. Nothing in this subdivision shall be construed to forbid the imposition of local property taxes, fees for water services and garbage collection, fees for normal inspections, local bond assessments, and other fees, charges, and assessments to which other family dwellings of the same type in the same zone are likewise subject. Neither the State Fire Marshal nor any local public entity shall charge any fee to the owner, operator or any resident for enforcing fire inspection regulations pursuant to state law or regulation or local ordinance, with respect to employee housing which serves six or fewer persons.
(d) For the purposes of any contract, deed, or covenant for the transfer of real property, employee housing which serves six or fewer employees shall be considered a residential use of property and a use of property by a single household, notwithstanding any disclaimers to the contrary. For purposes of this section, “employee housing” includes employee housing defined in subdivision (b) of Section 17008, even if the housing accommodations or property are not located in a rural area, as defined by Section 50101.
(e) The Legislature hereby declares that it is the policy of this state that each county and city shall permit and encourage the development and use of sufficient numbers and types of employee housing facilities as are commensurate with local
needs. This section shall apply equally to any charter city, general law city, county, city and county, district and any other local public entity. (Amended by Stats. 1993, Ch. 952, Sec. 1. Effective January 1, 1994.)
State of California
HEALTH AND SAFETY CODE
Section 17021.6
17021.6. (a) The owner of any employee housing who has qualified or intends to qualify for a permit to operate pursuant to this part may invoke this section. (b) Any employee housing consisting of no more than 36 beds in a group quarters or 12 units or spaces designed for use by a single family or household, or that is approved pursuant to Section 17021.8, shall be deemed an agricultural land use for the purposes of this section. Except as provided in Section 17021.8, for the purpose of all local ordinances, employee housing shall not be deemed a use that implies that the employee housing is an activity that differs in any other way from an agricultural use. No conditional use permit, zoning variance, or other discretionary zoning clearance shall be required of this employee housing that is not required of any other agricultural activity in the same zone. The permitted occupancy in employee housing in a zone allowing agricultural uses shall include agricultural employees who do not work on the property where the employee housing is located.
(c) Except as otherwise provided in this part, employee housing consisting of no more than 36 beds in a group quarters or 12 units or spaces designed for use by a single family or household shall not be subject to any business taxes, local registration fees, use permit fees, or other fees to which other agricultural activities in the same zone are not likewise subject. This subdivision does not forbid the imposition of local property taxes, fees for water services and garbage collection, fees for normal inspections, local bond assessments, and other fees, charges, and assessments to which other agricultural activities in the same zone are likewise subject. Neither the State Fire Marshal nor any local public entity shall charge any fee to the owner, operator, or any resident for enforcing fire inspection regulation pursuant to state law or regulations or local ordinance, with respect to employee housing consisting of no more than 36 beds in a group quarters or 12 units or spaces designed for use by a single family or household.
(d) For the purposes of any contract, deed, or covenant for the transfer of real property, employee housing consisting of no more than 36 beds in a group quarters or 12 units or spaces designed for use by a single family or household, or that is approved pursuant to Section 17021.8, shall be considered an agricultural use of property, notwithstanding any disclaimers to the contrary. For purposes of this section, “employee housing” includes employee housing defined in subdivisions (b) and (c) of Section 17008, even if the housing accommodations or property are not located in a rural area, as defined by Section 50101.
(e) The Legislature hereby declares that it is the policy of this state that each county and city shall permit and encourage the development and use of sufficient numbers
and types of employee housing facilities as are commensurate with local need. This section shall apply equally to any charter city, general law city, county, city and county, district, and any other local public entity.
(f) If any owner who invokes the provisions of this section or Section 17021.8 fails to maintain a permit to operate pursuant to this part throughout the first 10 consecutive years following the issuance of the original certificate of occupancy, both of the following shall occur:
(1) The enforcement agency shall notify the appropriate local government entity. (2) The public agency that has waived any taxes, fees, assessments, or charges for employee housing pursuant to this section may recover the amount of those taxes, fees, assessments, or charges from the landowner, less 10 percent of that amount for each year that a valid permit has been maintained.
(g) Subdivision (f) shall not apply to an owner of any prospective, planned, or unfinished employee housing facility who has applied to the appropriate state and local public entities for a permit to construct or operate pursuant to this part prior to January 1, 1996.
(Amended by Stats. 2019, Ch. 866, Sec. 10. (AB 1783) Effective January 1, 2020.)
AGENDA REPORT
MEETING DATE: May 12, 2026
TITLE: First Reading & Introduction of an Ordinance – Zoning Code Amendment (ZCA) 26-01 – Agricultural Employee Housing (Housing Element Program 12) PRESENTED BY: Gabriel Arguelles, Associate Planner
RECOMMENDATION: FIRST READING & INTRODUCTION OF AN ORDINANCE APPROVING ZONING CODE AMENDMENT (ZCA) 26-01 AND ENVIRONMENTAL
REVIEW (E) 26-05;
AND DIRECT STAFF TO RETURN WITH THE ORDINANCE FOR SECOND READING AND ADOPTION; THEREBY AMENDING TITLE 18 (ZONING)
OF THE GRAND TERRACE MUNICIPAL CODE, INCLUDING CHAPTERS
18.53 (AG-1 AGRICULTURAL OVERLAY DISTRICT), 18.56 (AG-2 AGRICULTURAL OVERLAY DISTRICT);
AND ADDING CHAPTER 18.58 (AGRICULTURAL EMPLOYEE HOUSING), TO IMPLEMENT PROGRAM 12 (EMPLOYEE HOUSING) OF THE CITY’S 2021–2029 HOUSING ELEMENT AND ENSURE CONSISTENCY WITH
THE CALIFORNIA EMPLOYEE HOUSING ACT (HEALTH AND SAFETY
CODE SECTIONS 17021.5 AND 17021.6)
2030 VISION STATEMENT:
This staff report supports City Countil Goal #5, “Engage in Proactive Communication,” by implementing Program 12 of the City’s 2021–2029 Housing Element, maintaining consistency between the General Plan and the City’s Municipal Code, and providing clear and current development standards consistent with State housing law BACKGROUND:
City staff is recommending approval of Zoning Code Amendment (ZCA) 26-01 to implement Housing Element Program 12 – Employee Housing. The City of Grand Terrace adopted its 6th Cycle Housing Element (2021–2029), which includes a series of housing programs intended to address the City’s Regional Housing Needs Allocation (RHNA) and remove governmental constraints to housing development. As part of the Housing Element, the City is required to update its Zoning Code to ensure consistency with State housing laws, including those related to agricultural employee housing.
The California Employee Housing Act (Health and Safety Code Sections 17000 through 17062.5) establishes statewide policy encouraging the development of adequate housing for agricultural employees. Under State law, employee housing serving six (6) or fewer employees must be treated the same as a single-family dwelling, and employee housing consisting of up to twelve (12) units or thirty-six (36) beds must be permitted in the same manner as other agricultural uses in the same zone.
To implement these State requirements and fulfill the City’s Housing Element obligations, staff prepared amendments to Title 18 of the Grand Terrace Municipal Code to define agricultural
employee housing, establish development standards, and provide a ministerial review process for qualifying projects.
The Ordinance is included as Attachment 1, along with supporting materials including Exhibit A – Housing Programs (2021–2029 Housing Element), Exhibit B – Health and Safety Code Section 17021.5, and Exhibit C – Health and Safety Code Section 17021.6.
Planning Commmission
On March 19, 2026, the Planning Commission / Site and Architectural Review Board conducted a duly noticed public hearing to consider Zoning Code Amendment (ZCA) 26-01 and Environmental Review (E) 26-05. Following staff presentation, public testimony, and Commission discussion, the Planning Commission adopted a resolution recommending that the City Council approve the ordinance. During the hearing, Vice Chair Cesena also made a motion to revise Section 18.53.090 of the Municipal Code to expand the temporary grazing provisions from sheep only to allow sheep, goats, cattle, horses, and other similar grazing livestock. That change has been incorporated into the proposed ordinance.
DISCUSSION:
Zoning Code Amendment (ZCA) 26-01 updates Title 18 of the Grand Terrace Municipal Code to establish regulations for agricultural employee housing within the City. The amendment modifies Chapters 18.53 (AG-1 Agricultural Overlay District) and 18.56 (AG-2 Agricultural Overlay District), and adds a new chapter, Chapter 18.58 – Agricultural Employee Housing.
The proposed amendments define agricultural employee housing, establish objective development standards, and create a ministerial review process consistent with the California Employee Housing Act. These updates ensure the City’s Zoning Code remains consistent with State law while providing a clear process for future agricultural employee housing projects within the City’s agricultural overlay districts.
Chapter 18.58 establishes several categories of agricultural employee housing, including small-scale permanent housing, large-scale permanent housing, seasonal housing, and temporary agricultural residences. The chapter also includes standards related to parcel size, unit size, utility service, emergency access, occupancy verification, and ongoing compliance.
These updates help implement Housing Element Program 12, bring the City’s Municipal Code into alignment with State law, and provide clear development standards for future agricultural and housing-related activities within the community.
NOTIFICAITON:
Notice of the public hearing for Zoning Code Amendment (ZCA) 26-01 has been properly provided in accordance with applicable provisions of the Grand Terrace Municipal Code, State law, and the City’s adopted public hearing noticing requirements.
CONCLUSION:
Zoning Code Amendment (ZCA) 26-01 implements Program 12 of the City’s 2021–2029 Housing Element and updates Title 18 of the Grand Terrace Municipal Code to ensure consistency with the California Employee Housing Act and other applicable State housing laws. The proposed amendments establish clear definitions, development standards, and a ministerial review process for
agricultural employee housing within the City’s agricultural overlay districts.
These updates remove governmental constraints to housing, maintain consistency between the General Plan and the Municipal Code, and provide clear and current development standards for future projects.
Based on the information presented and the Planning Commission’s recommendation, staff recommends that City Council conduct first reading of the Ordinance approving Zoning Code Amendment (ZCA) 26-01 and direct staff to return with the Ordinance for second reading and adoption.
ENVIRONMENTAL IMPACT:
The City has reviewed Zoning Code Amendment (ZCA) 26-01 for compliance with the California Environmental Quality Act (CEQA). The proposed amendment consists of updates to the City’s Municipal Code to implement State housing law and does not approve any specific development project or authorize any physical improvements. Because the action involves regulatory text changes only, and it can be seen with certainty that the amendment will not result in a significant effect on the environment, the project is exempt from CEQA pursuant to CEQA Guidelines Section 15061(b)(3), commonly referred to as the Common Sense Exemption.
FISCAL IMPACT:
Adoption of Zoning Code Amendment (ZCA) 26-01 is not expected to result in any direct fiscal impact to the City. The proposed ordinance updates the City’s Municipal Code to remain consistent with State law and does not approve any specific development project. Any future agricultural employee housing projects would be processed through the City’s standard application, permitting, and cost recovery procedures.
AGENDA REPORT
MEETING DATE: May 26, 2026
TITLE: Award of Professional Services Agreement to Kittelson & Associates, Inc. for Citywide AB 98 Truck Route Compliance, Inventory, and Signage Plan PRESENTED BY: Shanita Tillman, Sr. Management Analyst
RECOMMENDATION: APPROVE AN AGREEMENT WITH KITTELSON & ASSOCIATES, INC.
FOR PREPARATION OF A CITYWIDE AB 98 TRUCK ROUTE
COMPLIANCE, INVENTORY, AND SIGNAGE PLAN IN THE AMOUNT OF $189,513; AND
AUTHORIZE THE CITY MANAGER TO EXECUTE THE AGREEMENT
SUBJECT TO CITY ATTORNEY APPROVAL AS TO FORM, AND TO
MAKE ANY MINOR NON-SUBSTANTIVE CHANGES
2030 VISION STATEMENT:
• Goal #1: Ensure Fiscal Viability by proactively addressing State mandates and avoiding future compliance costs or penalties.
• Goal #2: Maintain Public Safety by improving truck routing and reducing conflicts with residential areas and sensitive uses.
• Goal #4: Promote Economic Development by ensuring efficient goods movement while balancing community impacts.
BACKGROUND:
The State of California adopted Assembly Bill 98 (AB 98), requiring cities to regulate truck routes, ensure compatibility with sensitive land uses, and provide clear truck route signage. Cities in the warehouse concentration region, including Grand Terrace, were required to meet these standards by January 1, 2026.The City has taken initial steps toward compliance through Zoning Code updates for logistics and warehouse uses.
However, AB 98 also requires cities to evaluate and formalize existing truck routes and signage, which has not yet been completed. This project represents the next phase of compliance and focuses on the City’s truck route network and signage.
DISCUSSION:
This project initiates a citywide effort to bring the City into compliance with AB 98 requirements related to truck routing and signage.
The City released an RFP on March 5, 2026, which closed on April 2, 2026, and received six proposals. Following evaluation, Kittelson & Associates, Inc. was ranked highest and is recommended for award.
The consultant will:
• Inventory existing truck routes and signage
• Identify gaps with State requirements
• Analyze truck movement patterns
• Develop a truck route signage plan
• Conduct public outreach
• Prepare an implementation plan with cost estimates and phasing This item does not approve or change truck routes. It provides the analysis needed for future Council decisions. Completing this work ensures compliance with State law and allows the City to proactively manage truck traffic rather than responding to issues reactively.
ENVIRONMENTAL IMPACT:
Environmental review will be conducted as part of the project in accordance with the California Environmental Quality Act (CEQA), including evaluation of potential impacts such as noise, air quality, and health risks.
FISCAL IMPACT:
The total cost for these services is $189,513, funded through 10-175-250-000. This is a one-time cost to meet State requirements and avoid potential compliance risks.
AGREEMENT FOR CONTRACT SERVICES
By and Between
CITY OF GRAND TERRACE
and
KITTELSON & ASSOCIATES, INC.
AB 98 – Truck Route Compliance, Inventory, and Signage Plan, Project #33227 1 AGREEMENT FOR CONTRACT SERVICES
BETWEEN THE CITY OF GRAND TERRACE AND
KITTELSON & ASSOCIATES, INC.
This AGREEMENT FOR CONTRACT SERVICES (herein “Agreement”) is made and entered into this 26th day of May, 2026 by and between the City of Grand Terrace, a California municipal corporation (“City”) and KITTELSON & ASSOCIATES, INC., an Oregon stock corporation (“Consultant”). City and Consultant may be referred to, individually or collectively, as “Party” or “Parties.”
RECITALS
A. City has sought, by issuance of a Request for Proposals or Invitation for Bids, the performance of the services defined and described particularly in Article 1 of this Agreement.
B. Consultant, following submission of a proposal or bid for the performance of the services defined and described particularly in Article 1 of this Agreement, was selected by the City to perform those services.
C. Pursuant to the City of Grand Terrace’s Municipal Code, City has authority to enter into and execute this Agreement.
D. The Parties desire to formalize the selection of Consultant for performance of those services defined and described particularly in Article 1 of this Agreement and desire that the terms of that performance be as particularly defined and described herein.
OPERATIVE PROVISIONS
NOW, THEREFORE, in consideration of the mutual promises and covenants made by the Parties and contained herein and other consideration, the value and adequacy of which are hereby acknowledged, the Parties agree as follows:
ARTICLE 1. SERVICES OF CONSULTANT
1.1 Scope of Services.
In compliance with all terms and conditions of this Agreement, the Consultant shall provide those services specified in the “Scope of Services” attached hereto as Exhibit “A” and incorporated herein by this reference, which may be referred to herein as the “services” or “work” hereunder. As a material inducement to the City entering into this Agreement, Consultant represents and warrants that it has the qualifications, experience, and facilities necessary to properly perform the services required under this Agreement in a thorough, competent, and professional manner, and is experienced in performing the work and services contemplated herein. Consultant shall at all times faithfully, competently and to the best of its ability, experience and talent, perform all services described herein. Consultant covenants that it shall follow the highest professional standards in performing the work and services required hereunder and that all materials will be both of good quality as well as fit for the purpose intended. For purposes of this Agreement, the phrase “highest professional standards” shall mean those standards of practice recognized by one or more first-class firms performing similar work under similar circumstances.
1.2 Consultant’s Proposal.
AB 98 – Truck Route Compliance, Inventory, and Signage Plan, Project #33227 2 The Scope of Services shall include the Consultant’s scope of work or bid which shall be incorporated herein by this reference as though fully set forth herein. In the event of any inconsistency between the terms of such proposal and this Agreement, the terms of this Agreement shall govern.
1.3 Compliance with Law.
Consultant shall keep itself informed concerning, and shall render all services hereunder in accordance with, all ordinances, resolutions, statutes, rules, and regulations of the City and any Federal, State or local governmental entity having jurisdiction in effect at the time service is rendered.
1.4 California Labor Law.
If the Scope of Services includes any “public work” or “maintenance work,” as those terms are defined in California Labor Code section 1720 et seq. and California Code of Regulations, Title 8, Section 16000 et seq., and if the total compensation is $1,000 or more, Consultant shall pay prevailing wages for such work and comply with the requirements in California Labor Code section 1770 et seq. and 1810 et seq., and all other applicable laws, including the following requirements:
(a) Public Work. The Parties acknowledge that some or all of the work to be performed under this Agreement is a “public work” as defined in Labor Code Section 1720 and that this Agreement is therefore subject to the requirements of Division 2, Part 7, Chapter 1 (commencing with Section 1720) of the California Labor Code relating to public works contracts and the rules and regulations established by the Department of Industrial Relations (“DIR”) implementing such statutes. The work performed under this Agreement is subject to compliance monitoring and enforcement by the DIR. Consultant shall post job site notices, as prescribed by regulation.
(b) Prevailing Wages. Consultant shall pay prevailing wages to the extent required by Labor Code Section 1771. Pursuant to Labor Code Section 1773.2, copies of the prevailing rate of per diem wages are on file at City Hall and will be made available to any interested party on request. By initiating any work under this Agreement, Consultant acknowledges receipt of a copy of the Department of Industrial Relations (DIR) determination of the prevailing rate of per diem wages, and Consultant shall post a copy of the same at each job site where work is performed under this Agreement.
(c) Penalty for Failure to Pay Prevailing Wages. Consultant shall comply with and be bound by the provisions of Labor Code Sections 1774 and 1775 concerning the payment of prevailing rates of wages to workers and the penalties for failure to pay prevailing wages. The Consultant shall, as a penalty to the City, forfeit two hundred dollars ($200) for each calendar day, or portion thereof, for each worker paid less than the prevailing rates as determined by the DIR for the work or craft in which the worker is employed for any public work done pursuant to this Agreement by Consultant or by any subcontractor. (d) Payroll Records. Consultant shall comply with and be bound by the provisions of Labor Code Section 1776, which requires Consultant and each subconsultant to: keep accurate payroll records and verify such records in writing under penalty of perjury, as specified in Section 1776; certify and make such payroll records available for inspection as provided by Section 1776; and inform the City of the location of the records.
(e) Apprentices. Consultant shall comply with and be bound by the provisions of Labor Code Sections 1777.5, 1777.6, and 1777.7 and California Code of Regulations Title 8, Section 200 et seq. concerning the employment of apprentices on public works projects. Consultant shall be responsible for compliance with
AB 98 – Truck Route Compliance, Inventory, and Signage Plan, Project #33227 3 these aforementioned Sections for all apprenticeable occupations. Prior to commencing work under this Agreement, Consultant shall provide City with a copy of the information submitted to any applicable apprenticeship program. Within sixty (60) days after concluding work pursuant to this Agreement, Consultant and each of its subconsultants shall submit to the City a verified statement of the journeyman and apprentice hours performed under this Agreement.
(f) Eight-Hour Work Day. Consultant acknowledges that eight (8) hours labor constitutes a legal day's work. Consultant shall comply with and be bound by Labor Code Section 1810. (g) Penalties for Excess Hours. Consultant shall comply with and be bound by the provisions of Labor Code Section 1813 concerning penalties for workers who work excess hours. The Consultant shall, as a penalty to the City, forfeit twenty-five dollars ($25) for each worker employed in the performance of this Agreement by the Consultant or by any subcontractor for each calendar day during which such worker is required or permitted to work more than eight (8) hours in any one calendar day and forty (40) hours in any one calendar week in violation of the provisions of Division 2, Part 7, Chapter 1, Article 3 of the Labor Code.
Pursuant to Labor Code section 1815, work performed by employees of Consultant in excess of eight (8) hours per day, and forty (40) hours during any one week shall be permitted upon public work upon compensation for all hours worked in excess of 8 hours per day at not less than one and one-half (1½) times the basic rate of pay. (h) Workers’ Compensation. California Labor Code Sections 1860 and 3700 provide that every employer will be required to secure the payment of compensation to its employees if it has employees. In accordance with the provisions of California Labor Code Section 1861, Consultant certifies as follows:
“I am aware of the provisions of Section 3700 of the Labor Code 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 I will comply with such provisions before commencing the performance of the work of this contract.” Consultant’s Authorized Initials ___________________________ Michael Sahimi, Project Manager
(i) Consultant’s Responsibility for Subcontractors. For every subcontractor who will perform work under this Agreement, Consultant shall be responsible for such subcontractor's compliance with Division 2, Part 7, Chapter 1 (commencing with Section 1720) of the California Labor Code, and shall make such compliance a requirement in any contract with any subcontractor for work under this Agreement.
Consultant shall be required to take all actions necessary to enforce such contractual provisions and ensure subcontractor's compliance, including without limitation, conducting a review of the certified payroll records of the subcontractor on a periodic basis or upon becoming aware of the failure of the subcontractor to pay his or her workers the specified prevailing rate of wages. Consultant shall diligently take corrective action to halt or rectify any such failure by any subcontractor.
1.5 Licenses, Permits, Fees and Assessments.
Consultant shall obtain at its sole cost and expense such licenses, permits and approvals as may be required by law for the performance of the services required by this Agreement. Consultant shall have the sole obligation to pay for any fees, assessments and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for the Consultant’s performance of the services required by this Agreement, and shall indemnify, defend and hold harmless City, its officers, employees or agents of City,
AB 98 – Truck Route Compliance, Inventory, and Signage Plan, Project #33227 4 against any such fees, assessments, taxes, penalties or interest levied, assessed or imposed against City hereunder.
1.6 Familiarity with Work.
By executing this Agreement, Consultant warrants that Consultant (i) has thoroughly investigated and considered the scope of services to be performed, (ii) has carefully considered how the services should be performed, and (iii) fully understands the facilities, difficulties and restrictions attending performance of the services under this Agreement. If the services involve work upon any site, Consultant warrants that Consultant has or will investigate the site and is or will be fully acquainted with the conditions there existing, prior to commencement of services hereunder. Should the Consultant discover any latent or unknown conditions, which will materially affect the performance of the services hereunder, Consultant shall immediately inform the City of such fact and shall not proceed except at Consultant’s risk until written instructions are received from the Contract Officer.
1.7 Care of Work.
The Consultant shall adopt reasonable methods during the life of this Agreement to furnish continuous protection to the work, and the equipment, materials, papers, documents, plans, studies and/or other components thereof to prevent losses or damages, and shall be responsible for all such damages, to persons or property, until acceptance of the work by City, except such losses or damages as may be caused by City’s own negligence.
1.8 Further Responsibilities of Parties.
Both Parties agree to use reasonable care and diligence to perform their respective obligations under this Agreement. Both Parties agree to act in good faith to execute all instruments, prepare all documents and take all actions as may be reasonably necessary to carry out the purposes of this Agreement. Unless hereafter specified, neither Party shall be responsible for the service of the other.
1.9 Additional Services.
City shall have the right at any time during the performance of the services, without invalidating this Agreement, to order extra work beyond that specified in the Scope of Services or make changes by altering, adding to or deducting from said work. No such extra work may be undertaken unless a written order is first given by the Contract Officer (as defined below) to the Consultant, incorporating therein any adjustment in (i) the Contract Sum (or a portion of the compensation due to Consultant) for the actual costs of the extra work, and/or (ii) the time to perform this Agreement, which said adjustments are subject to the written approval of the Consultant. Any increase in compensation of up to ten percent (10%) of the Contract Sum or $25,000, whichever is less; or, in the time to perform of up to one hundred eighty (180) days, may be approved by the Contract Officer. Any greater increases, taken either separately or cumulatively, must be approved by the City Council. It is expressly understood by Consultant that the provisions of this Section shall not apply to services specifically set forth in the Scope of Services. Consultant hereby acknowledges that it accepts the risk that the services to be provided pursuant to the Scope of Services may be more costly or time consuming than Consultant anticipates and that Consultant shall not be entitled to additional compensation therefor. City may in its sole and absolute discretion have similar work done by other Consultants. No claims for an increase in the Contract Sum or time for performance shall be valid unless the procedures established in this Section are followed.
1.10 Contract Modifications.
AB 98 – Truck Route Compliance, Inventory, and Signage Plan, Project #33227 5 Additional terms and conditions of this Agreement, if any, which are made a part hereof are set forth in the “Contract Modifications” attached hereto as Exhibit “B” and incorporated herein by this reference. In the event of a conflict between the provisions of Exhibit “B” and any other provisions of this Agreement, the provisions of Exhibit “B” shall govern.
1.11 Campaign Contributions.
This Agreement is subject to Government Code section 84308 (commonly known as the Levine Act), as amended by Senate Bill 1439 (2022), Senate Bill 1181 (2024), and Senate Bill 1243 (2024); unless the contract is (1) competitively bid; (2) under $50,000; (3) amendments valued at more than 10 percent of the value of the contract or fifty thousand dollars ($50,000), whichever is less; and (4) labor contracts, in which case this provision does not apply. Consultant shall disclose any contribution to an elected or appointed City official’s campaign or committee in an amount of more than five hundred dollars ($500) made within 12 months preceding the Commencement Date, by Consultant, its, her, or his agent, or another party affiliated with Consultant. Consultant shall provide a signed copy of the attached Campaign Contribution Disclosure Form to City prior to, or concurrent with, Consultant's execution of this Agreement and no later than the Commencement Date.
ARTICLE 2. COMPENSATION AND METHOD OF PAYMENT.
2.1 Contract Sum.
Subject to any limitations set forth in this Agreement, City agrees to pay Consultant the amounts specified in the “Schedule of Compensation” attached hereto as Exhibit “C” and incorporated herein by this reference. The total compensation, including reimbursement for actual expenses, shall not exceed One Hundred Eighty-Nine Thousand Five Hundred Thirteen Dollars and Zero Cents ($189,513.00) (the “Contract Sum”), unless additional compensation is approved pursuant to Section 1.9.
2.2 Method of Compensation.
The method of compensation may include: (i) a lump sum payment upon completion; (ii) payment in accordance with specified tasks or the percentage of completion of the services, less contract retention; (iii) payment for time and materials based upon the Consultant’s rates as specified in the Schedule of Compensation, provided that (a) time estimates are provided for the performance of sub tasks, (b) contract retention is maintained, and (c) the Contract Sum is not exceeded; or (iv) such other methods as may be specified in the Schedule of Compensation.
2.3 Reimbursable Expenses.
Compensation may include reimbursement for actual and necessary expenditures for reproduction costs, telephone expenses, and travel expenses approved by the Contract Officer in advance, or actual subcontractor expenses of an approved subcontractor pursuant to Section 4.5, and only if specified in the Schedule of Compensation. The Contract Sum shall include the attendance of Consultant at all project meetings reasonably deemed necessary by the City. Coordination of the performance of the work with City is a critical component of the services. If Consultant is required to attend additional meetings to facilitate such coordination, Consultant shall not be entitled to any additional compensation for attending said meetings.
2.4 Invoices.
AB 98 – Truck Route Compliance, Inventory, and Signage Plan, Project #33227 6 Each month Consultant shall furnish to City an original invoice for all work performed and expenses incurred during the preceding month in a form approved by City’s Director of Finance. By submitting an invoice for payment under this Agreement, Consultant shall be deemed to have certify compliance with all provisions of this Agreement. The invoice shall contain all information specified in Exhibit “C”, and shall detail charges for all necessary and actual expenses by the following categories: labor (by sub-category), travel, materials, equipment, supplies, and sub-contractor contracts. Sub-contractor charges shall also be detailed by such categories. Consultant shall not invoice City for any duplicate services performed by more than one person.
City shall independently review each invoice submitted by the Consultant to determine whether the work performed and expenses incurred are in compliance with the provisions of this Agreement. Except as to any charges for work performed or expenses incurred by Consultant which are disputed by City, or as provided in Section 7.3, City will use its best efforts to cause Consultant to be paid within forty-five (45) days of receipt of Consultant’s correct and undisputed invoice; however, Consultant acknowledges and agrees that due to City warrant run procedures, the City cannot guarantee that payment will occur within this time period. In the event any charges or expenses are disputed by City, the original invoice shall be returned by City to Consultant for correction and resubmission. Review and payment by City for any invoice provided by the Consultant shall not constitute a waiver of any rights or remedies provided herein or any applicable law.
2.5 Waiver.
Payment to Consultant for work performed pursuant to this Agreement shall not be deemed to waive any defects in work performed by Consultant.
ARTICLE 3. PERFORMANCE SCHEDULE
3.1 Time of Essence.
Time is of the essence in the performance of this Agreement.
3.2 Schedule of Performance.
Consultant shall commence the services pursuant to this Agreement upon receipt of a written notice to proceed and shall perform all services within the time period(s) established in the “Schedule of Performance” attached hereto as Exhibit “D” and incorporated herein by this reference. When requested by the Consultant, extensions to the time period(s) specified in the Schedule of Performance may be approved in writing by the Contract Officer but not exceeding one hundred eighty (180) days cumulatively.
3.3 Force Majeure.
The time period(s) specified in the Schedule of Performance for performance of the services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of the Consultant, including, but not restricted to, acts of God or of the public enemy, unusually severe weather, fires, earthquakes, floods, epidemics, quarantine restrictions, riots, strikes, freight embargoes, wars, litigation, and/or acts of any governmental agency, including the City, if the Consultant shall within ten (10) days of the commencement of such delay notify the Contract Officer in writing of the causes of the delay. The Contract Officer shall ascertain the facts and the extent of delay, and extend the time for performing the services for the period of the enforced delay when and if in the judgment of the Contract Officer such delay is justified. The Contract Officer’s determination shall be final and conclusive upon
AB 98 – Truck Route Compliance, Inventory, and Signage Plan, Project #33227 7 the Parties to this Agreement. In no event shall Consultant be entitled to recover damages against the City for any delay in the performance of this Agreement, however caused, Consultant’s sole remedy being extension of this Agreement pursuant to this Section.
3.4 Term.
Unless earlier terminated in accordance with Article 7 of this Agreement, this Agreement shall continue in full force and effect until completion of the services but not exceeding one (1) year from the date hereof (“Term”), except as otherwise provided in the Schedule of Performance (as shown on Exhibit “D” attached hereto). The City Manager may, at his/her sole discretion, extend the Term for 1 additional one-year terms.
ARTICLE 4. COORDINATION OF WORK
4.1 Representatives and Personnel of Consultant.
The following principals of Consultant (“Principals”) are hereby designated as being the principals and representatives of Consultant authorized to act in its behalf with respect to the work specified herein and make all decisions in connection therewith:
Michael Sahimi, Project Manager
It is expressly understood that the experience, knowledge, capability and reputation of the foregoing principals were a substantial inducement for City to enter into this Agreement. Therefore, the foregoing principals shall be responsible during the Term of this Agreement for directing all activities of Consultant and devoting sufficient time to personally supervise the services hereunder. All personnel of Consultant, and any authorized agents, shall at all times be under the exclusive direction and control of the Principals. For purposes of this Agreement, the foregoing Principals may not be replaced nor may their responsibilities be substantially reduced by Consultant without the express written approval of City. Additionally, Consultant shall utilize only competent personnel to perform services pursuant to this Agreement. Consultant shall make every reasonable effort to maintain the stability and continuity of Consultant’s staff and subcontractors, if any, assigned to perform the services required under this Agreement. Consultant shall notify City of any changes in Consultant’s staff and subcontractors, if any, assigned to perform the services required under this Agreement, prior to and during any such performance.
4.2 Status of Consultant.
Consultant shall have no authority to bind City in any manner, or to incur any obligation, debt or liability of any kind on behalf of or against City, whether by contract or otherwise, unless such authority is expressly conferred under this Agreement or is otherwise expressly conferred in writing by City. Consultant shall not at any time or in any manner represent that Consultant or any of Consultant’s officers, employees, or agents are in any manner officials, officers, employees or agents of City. Neither Consultant, nor any of Consultant’s officers, employees or agents, shall obtain any rights to retirement, health care or any other benefits which may otherwise accrue to City’s employees. Consultant expressly waives any claim Consultant may have to any such rights.
4.3 Contract Officer.
The Contract Officer shall be Shanita Tillman or such person as may be designated by the City Manager.
It shall be the Consultant’s responsibility to assure that the Contract Officer is kept informed of the progress of
AB 98 – Truck Route Compliance, Inventory, and Signage Plan, Project #33227 8 the performance of the services and the Consultant shall refer any decisions which must be made by City to the Contract Officer. Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the Contract Officer. The Contract Officer shall have authority, if specified in writing by the City Manager, to sign all documents on behalf of the City required hereunder to carry out the terms of this Agreement.
4.4 Independent Consultant.
Neither the City nor any of its employees shall have any control over the manner, mode or means by which Consultant, its agents or employees, perform the services required herein, except as otherwise set forth herein. City shall have no voice in the selection, discharge, supervision or control of Consultant’s employees, servants, representatives or agents, or in fixing their number, compensation or hours of service. Consultant shall perform all services required herein as an independent contractor of City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role. Consultant shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City.
City shall not in any way or for any purpose become or be deemed to be a partner of Consultant in its business or otherwise or a joint venturer or a member of any joint enterprise with Consultant.
4.5 Prohibition Against Subcontracting or Assignment.
The experience, knowledge, capability and reputation of Consultant, its principals and employees were a substantial inducement for the City to enter into this Agreement. Therefore, Consultant shall not contract with any other entity to perform in whole or in part the services required hereunder without the express written approval of the City. In addition, neither this Agreement nor any interest herein may be transferred, assigned, conveyed, hypothecated or encumbered voluntarily or by operation of law, whether for the benefit of creditors or otherwise, without the prior written approval of City. Transfers restricted hereunder shall include the transfer to any person or group of persons acting in concert of more than twenty five percent (25%) of the present ownership and/or control of Consultant, taking all transfers into account on a cumulative basis. In the event of any such unapproved transfer, including any bankruptcy proceeding, this Agreement shall be void. No approved transfer shall release the Consultant or any surety of Consultant of any liability hereunder without the express consent of City.
ARTICLE 5. INSURANCE AND INDEMNIFICATION
5.1 Insurance Coverages.
Without limiting Consultant’s indemnification of City, and prior to commencement of any services under this Agreement, Consultant shall obtain, provide and maintain at its sole cost and expense during the Term of this Agreement, policies of insurance of the type and amounts described below and in a form satisfactory to City.
(a) 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, including without limitation, blanket contractual liability. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted.
AB 98 – Truck Route Compliance, Inventory, and Signage Plan, Project #33227 9 (b) 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 the Consultant arising out of or in connection with the services 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 combined single limit for each accident.
(c) 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 no less than three (3) years after completion of the services required by this Agreement.
(d) Workers’ Compensation Insurance. Consultant shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000). (e) Subcontractors. Consultant shall include all subcontractors as insureds under its policies or shall furnish separate certificates and certified endorsements for each subcontractor. All coverages for subcontractors shall include all of the requirements stated herein. (f) Additional Insurance. Policies of such other insurance, as may be required in the Contract Modifications in Exhibit “B”.
5.2 General Insurance Requirements.
(a) Proof of Insurance. Consultant shall provide certificates of insurance to City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers’ compensation. Insurance certificates and endorsements must be approved by City’s Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with City at all times during the Term of this Agreement. City reserves the right to require complete, certified copies of all required insurance policies, at any time.
(b) Duration of Coverage. Consultant shall procure and maintain for the duration of this Agreement insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the Services hereunder by Consultant, its agents, representatives, employees or subconsultants.
(c) 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. (d) 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 payments. In the alternative, City may cancel this Agreement.
AB 98 – Truck Route Compliance, Inventory, and Signage Plan, Project #33227 10 (e) Acceptable Insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or that is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VI (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the City’s Risk Manager. (f) Waiver of Subrogation. 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.
(g) Enforcement of Contract Provisions (non-estoppel). Consultant acknowledges and agrees that any actual or alleged failure on the part of the City to inform Consultant of non-compliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder. (h) Requirements not Limiting. Requirements of specific coverage features or limits contained in this section are not intended as a limitation on coverage, limits or 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.
(i) 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. (j) Additional Insured Status. General liability and automobile policies shall provide or be endorsed to provide that City and its officers, officials, employees, and agents, and volunteers shall be additional insureds under such policies. This provision shall also apply to any excess/umbrella liability policies. (k) 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 by the City in writing. (l) 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.
(m) Pass Through Clause. Consultant agrees to ensure that its subconsultants, subcontractors, and any other party involved with the services who is brought onto or involved in the services by Consultant, 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. Consultant agrees that upon request, all agreements with consultants, subcontractors, and others engaged in the services will be submitted to City for review.
AB 98 – Truck Route Compliance, Inventory, and Signage Plan, Project #33227 11 (n) City’s Right to Revise Specifications. The City reserves the right at any time during the Term of this Agreement to change the amounts and types of insurance required by giving the Consultant ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Consultant, the City and Consultant may renegotiate Consultant’s compensation. (o) Deductibles / Self-insured Retentions. Any deductibles and self-insured retentions must be declared to and approved by City. At the option of the City, either: the insurer shall reduce or eliminate such deductibles or self-insured retentions with respect to the City, it officers, officials, employees, agents and volunteers, or the Consultant shall provide a financial guarantee satisfactory to the city guaranteeing payment of losses and related investigations, claims administration and defense expense. (p) 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. (q) 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.
5.3 Indemnification.
To the full extent permitted by law, Consultant agrees to indemnify, defend and hold harmless the City, its officers, employees and agents (“Indemnified Parties”) against, and will hold and save them and each of them harmless from, any and all actions, either judicial, administrative, arbitration or regulatory claims, damages to persons or property, losses, costs, penalties, obligations, errors, omissions or liabilities whether actual or threatened (herein “claims or liabilities”) that may be asserted or claimed by any person, firm or entity arising out of or in connection with the negligent performance of the work, operations or activities provided herein of Consultant, its officers, employees, agents, subcontractors, or invitees, or any individual or entity for which Consultant is legally liable (“indemnitors”), or arising from Consultant’s or indemnitors’ reckless or willful misconduct, or arising from Consultant’s or indemnitors’ negligent performance of or failure to perform any term, provision, covenant or condition of this Agreement, and in connection therewith:
(a) Consultant will defend any action or actions filed in connection with any of said claims or liabilities and will pay all costs and expenses, including legal costs and attorneys’ fees incurred in connection therewith;
(b) Consultant will promptly pay any judgment rendered against the City, its officers, agents or employees for any such claims or liabilities arising out of or in connection with the negligent performance of or failure to perform such work, operations or activities of Consultant hereunder; and Consultant agrees to save and hold the City, its officers, agents, and employees harmless therefrom; (c) In the event the City, its officers, agents or employees is made a party to any action or proceeding filed or prosecuted against Consultant for such damages or other claims arising out of or in connection with the negligent performance of or failure to perform the work, operation or activities of Consultant hereunder, Consultant agrees to pay to the City, its officers, agents or employees, any and all costs and expenses incurred by the City, its officers, agents or employees in such action or proceeding, including but not limited to, legal costs and attorneys’ fees.
AB 98 – Truck Route Compliance, Inventory, and Signage Plan, Project #33227 12 (d) Consultant shall incorporate similar indemnity agreements with its subcontractors and if it fails to do so Consultant shall be fully responsible to indemnify City hereunder therefore, and failure of City to monitor compliance with these provisions shall not be a waiver hereof. This indemnification includes claims or liabilities arising from any negligent or wrongful act, error or omission, or reckless or willful misconduct of Consultant in the performance of professional services hereunder. The provisions of this Section do not apply to claims or liabilities occurring as a result of City’s sole negligence or willful acts or omissions, but, to the fullest extent permitted by law, shall apply to claims and liabilities resulting in part from City’s negligence, except that design professionals’ indemnity hereunder shall be limited to claims and liabilities arising out of the negligence, recklessness or willful misconduct of the design professional. The indemnity obligation shall be binding on successors and assigns of Consultant and shall survive termination of this Agreement.
ARTICLE 6. RECORDS, REPORTS, AND RELEASE OF INFORMATION
6.1 Records.
Consultant shall keep, and require subcontractors to keep, such ledgers, books of accounts, invoices, vouchers, canceled checks, reports, studies or other documents relating to the disbursements charged to City and services performed hereunder (the “books and records”), as shall be necessary to perform the services required by this Agreement and enable the Contract Officer to evaluate the performance of such services. Any and all such documents shall be maintained in accordance with generally accepted accounting principles and shall be complete and detailed. The Contract Officer shall have full and free access to such books and records at all times during normal business hours of City, including the right to inspect, copy, audit and make records and transcripts from such records. Such records shall be maintained for a period of three (3) years following completion of the services hereunder, and the City shall have access to such records in the event any audit is required. In the event of dissolution of Consultant’s business, custody of the books and records may be given to City, and access shall be provided by Consultant’s successor in interest. Notwithstanding the above, the Consultant shall fully cooperate with the City in providing access to the books and records if a public records request is made and disclosure is required by law including but not limited to the California Public Records Act.
6.2 Reports.
Consultant shall periodically prepare and submit to the Contract Officer such reports concerning the performance of the services required by this Agreement as the Contract Officer shall require. Consultant hereby acknowledges that the City is greatly concerned about the cost of work and services to be performed pursuant to this Agreement. For this reason, Consultant agrees that if Consultant becomes aware of any facts, circumstances, techniques, or events that may or will materially increase or decrease the cost of the work or services contemplated herein or, if Consultant is providing design services, the cost of the project being designed, Consultant shall promptly notify the Contract Officer of said fact, circumstance, technique or event and the estimated increased or decreased cost related thereto and, if Consultant is providing design services, the estimated increased or decreased cost estimate for the project being designed.
6.3 Ownership of Documents.
All drawings, specifications, maps, designs, photographs, studies, surveys, data, notes, computer files, reports, records, documents and other materials (the “documents and materials”) prepared by Consultant, its employees, subcontractors and agents in the performance of this Agreement shall be the property of City and shall be delivered to City upon request of the Contract Officer or upon the termination of this Agreement, and Consultant shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership use, reuse, or assignment of the documents and materials hereunder. Any use,
AB 98 – Truck Route Compliance, Inventory, and Signage Plan, Project #33227 13 reuse or assignment of such completed documents for other projects and/or use of uncompleted documents without specific written authorization by the Consultant will be at the City’s sole risk and without liability to Consultant, and Consultant’s guarantee and warranties shall not extend to such use, reuse or assignment.
Consultant may retain copies of such documents for its own use. Consultant shall have the right to use the concepts embodied therein. All subcontractors shall provide for assignment to City of any documents or materials prepared by them, and in the event Consultant fails to secure such assignment, Consultant shall indemnify City for all damages resulting therefrom. Moreover, Consultant with respect to any documents and materials that may qualify as “works made for hire” as defined in 17 U.S.C. § 101, such documents and materials are hereby deemed “works made for hire” for the City.
6.4 Confidentiality and Release of Information.
(a) All information gained or work product produced by Consultant in performance of this Agreement shall be considered confidential, unless such information is in the public domain or already known to Consultant. Consultant shall not release or disclose any such information or work product to persons or entities other than City without prior written authorization from the Contract Officer. (b) Consultant, its officers, employees, agents or subcontractors, shall not, without prior written authorization from the Contract Officer or unless requested by the City Attorney, voluntarily provide documents, declarations, letters of support, testimony at depositions, response to interrogatories or other information concerning the work performed under this Agreement. Response to a subpoena or court order shall not be considered “voluntary” provided Consultant gives City notice of such court order or subpoena. (c) If Consultant, or any officer, employee, agent or subcontractor of Consultant, provides any information or work product in violation of this Agreement, then City shall have the right to reimbursement and indemnity from Consultant for any damages, costs and fees, including attorney’s fees, caused by or incurred as a result of Consultant’s conduct.
(d) Consultant shall promptly notify City should Consultant, its officers, employees, agents or subcontractors be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions or other discovery request, court order or subpoena from any party regarding this Agreement and the work performed there under. City retains the right, but has no obligation, to represent Consultant or be present at any deposition, hearing or similar proceeding. Consultant agrees to cooperate fully with City and to provide City with the opportunity to review any response to discovery requests provided by Consultant. However, this right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response.
ARTICLE 7. ENFORCEMENT OF AGREEMENT AND TERMINATION
7.1 California Law.
This Agreement shall be interpreted, construed and governed both as to validity and to performance of the Parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of San Bernardino, State of California, or any other appropriate court in such county, and Consultant covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. In the event of litigation in a U.S. District Court, venue shall lie exclusively in the Central District of California, in the County of San Bernardino, State of California.
AB 98 – Truck Route Compliance, Inventory, and Signage Plan, Project #33227 14 7.2 Disputes; Default.
In the event that Consultant is in default under the terms of this Agreement, the City shall not have any obligation or duty to continue compensating Consultant for any work performed after the date of default.
Instead, the City may give notice to Consultant of the default and the reasons for the default. The notice shall include the timeframe in which Consultant may cure the default. This timeframe is presumptively thirty (30) days, but may be extended, though not reduced, if circumstances warrant, as determined by the Contract Officer. The cure period may run concurrently with the termination period as provided in Section 7.7, if the option to cure in the alternative to termination. During the period of time that Consultant is in default, the City shall hold all invoices and shall, when the default is cured, proceed with payment on the invoices. In the alternative, the City may, in its sole discretion, elect to pay some or all of the outstanding invoices during the period of default. If Consultant does not cure the default, the City may take necessary steps to terminate this Agreement under this Article. Any failure on the part of the City to give notice of the Consultant’s default shall not be deemed to result in a waiver of the City’s legal rights or any rights arising out of any provision of this Agreement.
7.3 Retention of Funds.
Consultant hereby authorizes City to deduct from any amount payable to Consultant (whether or not arising out of this Agreement) (i) any amounts the payment of which may be in dispute hereunder or which are necessary to compensate City for any losses, costs, liabilities, or damages suffered by City, and (ii) all amounts for which City may be liable to third parties, by reason of Consultant’s acts or omissions in performing or failing to perform Consultant’s obligation under this Agreement. In the event that any claim is made by a third party, the amount or validity of which is disputed by Consultant, or any indebtedness shall exist which shall appear to be the basis for a claim of lien, City may withhold from any payment due, without liability for interest because of such withholding, an amount sufficient to cover such claim. The failure of City to exercise such right to deduct or to withhold shall not, however, affect the obligations of the Consultant to insure, indemnify, and protect City as elsewhere provided herein.
7.4 Waiver.
Waiver by any Party to this Agreement of any term, condition, or covenant of this Agreement shall not constitute a waiver of any other term, condition, or covenant. Waiver by any Party of any breach of the provisions of this Agreement shall not constitute a waiver of any other provision or a waiver of any subsequent breach or violation of any provision of this Agreement. Acceptance by City of any work or services by Consultant shall not constitute a waiver of any of the provisions of this Agreement. No delay or omission in the exercise of any right or remedy by a non-defaulting Party on any default shall impair such right or remedy or be construed as a waiver. Any waiver by either Party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement.
7.5 Rights and Remedies are Cumulative.
Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the Parties are cumulative and the exercise by either Party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other Party.
7.6 Legal Action.
AB 98 – Truck Route Compliance, Inventory, and Signage Plan, Project #33227 15 In addition to any other rights or remedies, either Party may take legal action, in law or in equity, to cure, correct or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement. Notwithstanding any contrary provision herein, Consultant shall file a statutory claim pursuant to Government Code Sections 905 et seq. and 910 et seq., in order to pursue a legal action under this Agreement.
7.7 Termination Prior to Expiration of Term.
This Section shall govern any termination of this Agreement except as specifically provided in the following Section for termination for cause. The City reserves the right to terminate this Agreement at any time, with or without cause, upon thirty (30) days’ written notice to Consultant, except that where termination is due to the fault of the Consultant, the period of notice may be such shorter time as may be determined by the Contract Officer. In addition, the Consultant reserves the right to terminate this Agreement at any time, with or without cause, upon sixty (60) days’ written notice to City, except that where termination is due to the fault of the City, the period of notice may be such shorter time as the Consultant may determine. Upon receipt of any notice of termination, Consultant shall immediately cease all services hereunder except such as may be specifically approved by the Contract Officer. Except where the Consultant has initiated termination, the Consultant shall be entitled to compensation for all services rendered prior to the effective date of the notice of termination and for any services authorized by the Contract Officer thereafter in accordance with the Schedule of Compensation or such as may be approved by the Contract Officer, except as provided in Section 7.3. In the event the Consultant has initiated termination, the Consultant shall be entitled to compensation only for the reasonable value of the work product actually produced hereunder. In the event of termination without cause pursuant to this Section, the terminating party need not provide the non-terminating party with the opportunity to cure pursuant to Section 7.2.
7.8 Termination for Default of Consultant.
If termination is due to the failure of the Consultant to fulfill its obligations under this Agreement, City may, after compliance with the provisions of Section 7.2, take over the work and prosecute the same to completion by contract or otherwise, and the Consultant shall be liable to the extent that the total cost for completion of the services required hereunder exceeds the compensation herein stipulated (provided that the City shall use reasonable efforts to mitigate such damages), and City may withhold any payments to the Consultant for the purpose of set-off or partial payment of the amounts owed the City as previously stated.
7.9 Attorneys’ Fees.
If either Party to this Agreement is required to initiate or defend or made a party to any action or proceeding in any way connected with this Agreement, the prevailing party in such action or proceeding, in addition to any other relief which may be granted, whether legal or equitable, shall be entitled to reasonable attorney’s fees. Attorney’s fees shall include attorneys’ fees on any appeal, and in addition a Party entitled to attorneys’ fees shall be entitled to all other reasonable costs for investigating such action, taking depositions and discovery and all other necessary costs the court allows which are incurred in such litigation. All such fees shall be deemed to have accrued on commencement of such action and shall be enforceable whether or not such action is prosecuted to judgment.
ARTICLE 8. CITY OFFICERS AND EMPLOYEES: NON-DISCRIMINATION
8.1 Non-liability of City Officers and Employees.
AB 98 – Truck Route Compliance, Inventory, and Signage Plan, Project #33227 16 No officer or employee of the City shall be personally liable to the Consultant, or any successor in interest, in the event of any default or breach by the City or for any amount which may become due to the Consultant or to its successor, or for breach of any obligation of the terms of this Agreement.
8.2 Conflict of Interest.
Consultant covenants that neither it, nor any officer or principal of its firm, has or shall acquire any interest, directly or indirectly, which would conflict in any manner with the interests of City or which would in any way hinder Consultant’s performance of services under this Agreement. Consultant further covenants that in the performance of this Agreement, no person having any such interest shall be employed by it as an officer, employee, agent or subcontractor without the express written consent of the Contract Officer. Consultant agrees to at all times avoid conflicts of interest or the appearance of any conflicts of interest with the interests of City in the performance of this Agreement.
No officer or employee of the City shall have any financial interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to this Agreement which affects her/his financial interest or the financial interest of any corporation, partnership or association in which (s)he is, directly or indirectly, interested, in violation of any State statute or regulation. The Consultant warrants that it has not paid or given and will not pay or give any third party any money or other consideration for obtaining this Agreement.
8.3 Covenant Against Discrimination.
Consultant covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, gender, sexual orientation, marital status, national origin, ancestry or other protected class in the performance of this Agreement. Consultant shall take affirmative action to insure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, gender, sexual orientation, marital status, national origin, ancestry or other protected class.
8.4 Unauthorized Aliens.
Consultant hereby promises and agrees to comply with all of the provisions of the Federal Immigration and Nationality Act, 8 U.S.C. § 1101 et seq., as amended, and in connection therewith, shall not employ unauthorized aliens as defined therein. Should Consultant so employ such unauthorized aliens for the performance of work and/or services covered by this Agreement, and should any liability or sanctions be imposed against City for such use of unauthorized aliens, Consultant hereby agrees to and shall reimburse City for the cost of all such liabilities or sanctions imposed, together with any and all costs, including attorneys’ fees, incurred by City.
ARTICLE 9. MISCELLANEOUS PROVISIONS
9.1 Notices.
Any notice, demand, request, document, consent, approval, or communication either Party desires or is required to give to the other Party or any other person shall be in writing and either served personally or sent by prepaid, first-class mail, in the case of the City, to the City Manager and to the attention of the Contract Officer (with her/his name and City title), City of Grand Terrace, 22795 Barton Rd., Grand Terrace, California 92313,
AB 98 – Truck Route Compliance, Inventory, and Signage Plan, Project #33227 17 and in the case of the Consultant, to the person(s) at the address designated on the execution page of this Agreement. Either Party may change its address by notifying the other Party of the change of address in writing.
Notice shall be deemed communicated at the time personally delivered or in seventy-two (72) hours from the time of mailing if mailed as provided in this Section.
9.2 Interpretation.
The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either Party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply.
9.3 Counterparts and Electronic Signatures.
This Agreement may be executed in two or more counterparts, each of which when so executed shall be deemed to be an original and all of which when taken together shall constitute one and the same instrument. The words “execution,” “signed,” “signature,” and words of like import in this Agreement or in any other certificate, agreement or document related to this Agreement, shall include images of manually executed signatures transmitted by facsimile or other electronic format (including, without limitation, “pdf”, “tif” or “jpg”) and other electronic signatures in accordance with California Code of Regulations Title 2 Section 22003 (including, without limitation, DocuSign and AdobeSign). The use of electronic signatures and electronic records (including, without limitation, any contract or other record created, generated, sent, communicated, received, or stored by electronic means) shall be of the same legal effect, validity and enforceability as a manually executed signature or use of a paper-based record-keeping system to the fullest extent permitted by applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the California Uniform Electronic Transactions Act and any other applicable law, including, without limitation, any state law based on the Uniform Electronic Transactions Act or the Uniform Commercial Code.
9.4 Integration; Amendment.
This Agreement including the attachments hereto is the entire, complete and exclusive expression of the understanding of the Parties. It is understood that there are no oral agreements between the Parties hereto affecting this Agreement and this Agreement supersedes and cancels any and all previous negotiations, arrangements, agreements and understandings, if any, between the Parties, and none shall be used to interpret this Agreement. No amendment to or modification of this Agreement shall be valid unless made in writing and approved by the Consultant and by the City Council. The Parties agree that this requirement for written modifications cannot be waived and that any attempted waiver shall be void.
9.5 Severability.
In the event that any one or more of the phrases, sentences, clauses, paragraphs, or sections contained in this Agreement shall be declared invalid or unenforceable by a valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining phrases, sentences, clauses, paragraphs, or sections of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the Parties hereunder unless the invalid provision is so material that its invalidity deprives either Party of the basic benefit of their bargain or renders this Agreement meaningless.
AB 98 – Truck Route Compliance, Inventory, and Signage Plan, Project #33227 18 9.6 Warranty & Representation of Non-Collusion.
No official, officer, or employee of City has any financial interest, direct or indirect, in this Agreement, nor shall any official, officer, or employee of City participate in any decision relating to this Agreement which may affect his/her financial interest or the financial interest of any corporation, partnership, or association in which (s)he is directly or indirectly interested, or in violation of any corporation, partnership, or association in which (s)he is directly or indirectly interested, or in violation of any State or municipal statute or regulation.
The determination of “financial interest” shall be consistent with State law and shall not include interests found to be “remote” or “noninterests” pursuant to Government Code Sections 1091 or 1091.5. Consultant warrants and represents that it has not paid or given, and will not pay or give, to any third party including, but not limited to, any City official, officer, or employee, any money, consideration, or other thing of value as a result or consequence of obtaining or being awarded any agreement. Consultant further warrants and represents that (s)he/it has not engaged in any act(s), omission(s), or other conduct or collusion that would result in the payment of any money, consideration, or other thing of value to any third party including, but not limited to, any City official, officer, or employee, as a result of consequence of obtaining or being awarded any agreement.
Consultant is aware of and understands that any such act(s), omission(s) or other conduct resulting in such payment of money, consideration, or other thing of value will render this Agreement void and of no force or effect.
Consultant’s Authorized Initials ___________________________ Michael Sahimi, Project Manager
9.7 Authority.
The persons executing this Agreement on behalf of the Parties hereto warrant that (i) such Party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said Party, (iii) by so executing this Agreement, such Party is formally bound to the provisions of this Agreement, and (iv) that entering into this Agreement does not violate any provision of any other agreement to which said Party is bound. This Agreement shall be binding upon the heirs, executors, administrators, successors and assigns of the Parties.
[SIGNATURES APPEAR ON THE FOLLOWING PAGE]
AB 98 – Truck Route Compliance, Inventory, and Signage Plan, Project #33227 19 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the date and year first-above written.
CITY:
CITY OF GRAND TERRACE, a municipal corporation
By:
_______________________________________________
Konrad Bolowich
City Manager
APPROVED AS TO FORM:
ALESHIRE & WYNDER, LLP
Adrian R. Guerra
City Attorney
ATTEST:
Daysi Alcocer
City Clerk
CONSULTANT:
KITTELSON & ASSOCIATES, INC.
By:
_______________________________________________
Name: Tim Erney
Title: Senior Principal
Email Address: [email protected]
By:
_______________________________________________
Name: Larry Van Dyke
Title: Chief Financial Officer
Email Address: [email protected]
Address: 225 E. Robinson Street, Suite 335
Orlando, FL 32801
Two corporate officer signatures required when Consultant is a corporation, with one signature required from each of the following groups: 1) Chairman of the Board, President or any Vice President; and 2) Secretary, any Assistant Secretary, Chief Financial Officer or any Assistant Treasurer. CONSULTANT’S
SIGNATURES SHALL BE DULY NOTARIZED UNLESS EXECUTED UTILIZING DIGITAL SIGNATURE IN ACCORDANCE WITH CALIFORNIA CODE OF REGULATIONS TITLE 2 SECTION 22003. IN ADDITION, THE APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS MAY BE REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO CONSULTANT’S BUSINESS ENTITY.
AB 98 – Truck Route Compliance, Inventory, and Signage Plan, Project #33227 20 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
STATE OF CALIFORNIA
COUNTY OF SAN BERNARDINO
On __________, 2026 before me, ________________, personally appeared ________________, proved to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature: _____________________________________
OPTIONAL
Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form
CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT
INDIVIDUAL
CORPORATE OFFICER
_______________________________
TITLE(S)
PARTNER(S) LIMITED
GENERAL
ATTORNEY-IN-FACT
TRUSTEE(S)
GUARDIAN/CONSERVATOR
OTHER_______________________________
______________________________________
SIGNER IS REPRESENTING:
(NAME OF PERSON(S) OR ENTITY(IES))
_____________________________________________
_____________________________________________
___________________________________
TITLE OR TYPE OF DOCUMENT
___________________________________
NUMBER OF PAGES
___________________________________
DATE OF DOCUMENT
___________________________________
SIGNER(S) OTHER THAN NAMED ABOVE
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy or validity of that document.
AB 98 – Truck Route Compliance, Inventory, and Signage Plan, Project #33227 21 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
STATE OF CALIFORNIA
COUNTY OF SAN BERNARDINO
On __________, 2026 before me, ________________, personally appeared ________________, proved to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature: _____________________________________
OPTIONAL
Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form.
CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT
INDIVIDUAL
CORPORATE OFFICER
_______________________________
TITLE(S)
PARTNER(S) LIMITED
GENERAL
ATTORNEY-IN-FACT
TRUSTEE(S)
GUARDIAN/CONSERVATOR
OTHER_______________________________
______________________________________
SIGNER IS REPRESENTING:
(NAME OF PERSON(S) OR ENTITY(IES))
_____________________________________________
_____________________________________________
___________________________________
TITLE OR TYPE OF DOCUMENT
___________________________________
NUMBER OF PAGES
___________________________________
DATE OF DOCUMENT
___________________________________
SIGNER(S) OTHER THAN NAMED ABOVE
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy or validity of that document.
01247.0001 2147889.1 5/21/2026 A-1
EXHIBIT “A”
SCOPE OF SERVICES
I. Consultant shall perform the services described in Attachment 1 (“Scope of Services”), including, but not limited to, the following:
A. Provide professional planning, engineering, and environmental services to support the Citywide AB 98 Truck Route Compliance, Inventory, and Signage Plan, including, but not limited to:
1. Conducting a comprehensive inventory of existing truck routes and signage, including field verification, data collection, and mapping of existing conditions.
2. Preparing baseline conditions analysis, including land use, transportation data, sensitive receptors, truck volumes, and safety considerations.
3. Evaluating the City’s existing truck route network for compliance with AB 98 requirements and identifying deficiencies and opportunities for modification.
4. Performing truck route network analysis to develop an optimized truck route system that balances goods movement efficiency with community impacts.
5. Preparing an updated citywide truck route map and supporting technical documentation.
6. Developing a truck route signage plan that identifies required signage, locations, and specifications consistent with CA MUTCD standards, including recommendations for improved visibility and compliance.
7. Preparing a signage implementation plan that includes installation details, phasing strategy, and cost estimates to support near-term and long-term implementation.
8. Conducting public outreach and community engagement consistent with AB 98 requirements, as modified to include:
• One (1) combined stakeholder meeting
• Two (2) public study sessions (Planning Commission and City Council)
• One (1) bilingual online survey
• Supporting outreach materials and documentation
9. Preparing General Plan Circulation Element amendments to ensure compliance with AB 98 requirements.
01247.0001 2147889.1 5/21/2026 A-2
10. Conducting environmental review in accordance with CEQA, including technical analysis, documentation, and preparation of appropriate environmental clearance.
11. Providing support for Planning Commission and City Council hearings, including presentations and responses to decision-maker inquiries.
12. Preparing a final AB 98 implementation package documenting compliance, analysis, and recommendations.
13. Coordinating with City staff through a project kickoff meeting and up to three (3) coordination calls scheduled as needed.
II. As part of the services, Consultant will prepare and deliver the following tangible work products to the City:
A. Task 1 Deliverables:
1. Truck route and signage inventory database and mapping
2. Draft and final baseline conditions data memorandum
B. Task 2 Deliverables:
1. Draft and final AB 98 compliance memorandum
C. Task 3 Deliverables:
1. First draft, second draft, and final truck route map and technical memorandum
2. Updated truck route network GIS Shapefile
D. Task 4 Deliverables:
1. Draft and final signage plan, including sign location maps and specifications
2. Draft and final signage implementation plan, including:
• Sign installation details
• Schedule
• Phasing plan
• Cost estimates
E. Task 5 Deliverables:
01247.0001 2147889.1 5/21/2026 A-3
1. Outreach and engagement plan, including results memorandum
2. Outreach materials, including:
• Bilingual outreach flyer
• Bilingual digital outreach materials
3. Presentation materials for one (1) stakeholder and community meeting
4. Presentation materials for two (2) study sessions
5. One (1) electronic copy of the draft and final SB 18 tribal consultation letter
6. Certified mailing of the SB 18 tribal consultation letter to each Tribal Representative on the NAHC SB 18 list
F. Task 6 Deliverables:
1. Draft and final Circulation Element review and updates memorandum
2. Updated Circulation Element text and truck route exhibit G. Task 7 Deliverables:
1. CEQA technical reports, recommendation memorandum, and environmental documentation
2. One (1) electronic copy of the Noise technical report
3. One (1) electronic copy of the Air Quality/Health Risk Assessment technical report
4. One (1) electronic copy of the CEQA recommendation memorandum
5. One (1) electronic copy of the administrative draft, revised draft, and final Addendum
H. Task 8 Deliverables:
1. Materials for and attendance at one (1) Planning Commission meeting
2. Materials for and attendance at two (2) City Council meetings I. Task 9 Deliverables:
1. Final AB 98 Technical Report
2. Final Truck Route Map
01247.0001 2147889.1 5/21/2026 A-4
3. Final Truck Route GIS data
J. Task 10 Deliverables:
1. Virtual kickoff meeting
2. Data request memorandum
3. Three (3) calls
All deliverables shall be provided in electronic format, and GIS-compatible formats where applicable.
III. In addition to the requirements of Section 6.2, during performance of the services, Consultant will keep the City appraised of the status of performance by delivering the following status reports:
A. Up to three (3) coordination meetings with City staff, scheduled as needed.
B. Progress updates provided in advance of key deliverables and milestones.
C. Ongoing communication regarding schedule, risks, data needs, and decision points.
IV. All work product is subject to review and acceptance by the City, and must be revised by the Consultant without additional charge to the City until found satisfactory and accepted by City.
V. Consultant shall utilize qualified personnel, including project management, planning, engineering, signage design, outreach, and environmental specialists, as identified in the Consultant’s proposal.
VI. Implementation-Focused Deliverables Requirement
A. The Consultant shall ensure that all planning and analysis directly supports implementation of the truck route signage program. Deliverables shall be structured to avoid unnecessary or excessive planning detail that does not contribute to execution.
B. At a minimum, the scope shall support implementation by:
1. Providing planning-level cost ranges and key assumptions early in the project to inform City decision-making.
2. Identifying a minimum compliance approach compared to a full system buildout to allow the City to evaluate cost-effective implementation strategies.
01247.0001 2147889.1 5/21/2026 A-5
3. Structuring recommendations to support phased implementation based on priority locations, compliance needs, and available funding.
4. Delivering an implementation-ready signage plan that includes:
• Specific sign locations
• Sign types and specifications
• Quantities
• Clear direction for procurement and installation
C. All recommendations shall be actionable and aligned with the City’s objective of achieving measurable compliance with AB 98 requirements and advancing timely deployment of signage improvements.
01247.0001 2147889.1 5/21/2026 B-1
EXHIBIT “B”
CONTRACT MODIFICATIONS
(Superseding Contract Boilerplate)
None.
01247.0001 2147889.1 5/21/2026 C-1
EXHIBIT “C”
SCHEDULE OF COMPENSATION
I. Consultant shall perform the following tasks at the following rates:
DESCRIPTION RATE SUB-BUDGET
Task 1 Existing
Conditions and
Inventory
Fixed Rate $14,591
Task 2 AB 98
Compliance
Review
Fixed Rate $14,240
Task 3 Truck Route
Network
Analysis
Fixed Rate $16,060
Task 4 Truck Route
Signage Plan
Fixed Rate $10,100
Task 5 Public Outreach
and Engagement
Fixed Rate $27,376
Task 6 General Plan
Amendment
Fixed Rate $5,140
Task 7 Environmental
Review (CEQA)
Fixed Rate $68,190
Task 8 Public Hearing
Support
Fixed Rate $13,981
Task 9 Final
Implementation
Package
Fixed Rate $14,840
Task 10 Meetings and
Coordination
Fixed Rate $4,995
Total Firm-Fixed Price $189,513
01247.0001 2147889.1 5/21/2026 C-2
Each task is billed on a firm-fixed basis. Consultant shall not exceed the sub-budget for any task without prior written authorization from the City.
III. Within the budgeted amounts for each Task, and with the approval of the Contract Officer, funds may be shifted from one Task subbudget to another so long as the Contract Sum is not exceeded per Section 2.1, unless Additional Services are approved per Section 1.9.
01247.0001 2147889.1 5/21/2026 C-3
IV. The City will compensate Consultant for the services performed upon submission of a valid invoice. Each invoice is to include:
A. Line items for all personnel describing the work performed, the number of hours worked, and the hourly rate.
B. Line items for all materials and equipment properly charged to the Services.
C. Line items for all other approved reimbursable expenses claimed, with supporting documentation.
D. Line items for all approved subcontractor labor, supplies, equipment, materials, and travel properly charged to the Services.
V. The total compensation for the Services shall not exceed the Contract Sum as provided in Section 2.1 of this Agreement.
VI. The Consultant’s billing rates for all personnel are attached as Exhibit “C-1”.
01247.0001 2147889.1 5/21/2026 C-4
EXHIBIT “C-1”
BILLING RATES
01247.0001 2147889.1 5/21/2026 C-5
01247.0001 2147889.1 5/21/2026 D-1
EXHIBIT “D”
SCHEDULE OF PERFORMANCE
I. Consultant shall perform all services timely in accordance with the following schedule:
Description Days to Perform
A. Project Kickoff, Data
Request, and Inventory
Initiation
30 days from
Notice to
Proceed (“NTP”)
B. Existing Conditions, AB
98 Compliance Review,
and Baseline Analysis
90 days from
NTP
C. Draft Truck Route
Network and Signage
Plan
150 days from
NTP
D. Draft Implementation
Plan, Outreach
Completion, and GP
Amendments
210 days from
NTP
E. Environmental Review
(CEQA) and Public
Hearing Support
270 days from
NTP
F. Final Deliverables and
Implementation Package
300 days from
NTP
II. Consultant shall deliver the following tangible work products to the City by the following dates.
A. Within 90 days of NTP
• Baseline Conditions Memorandum
• AB 98 Compliance Memorandum
B. Within 150 days of NTP
• Draft Truck Route Map and Technical Memorandum
• Draft Signage Plan (locations and specifications)
01247.0001 2147889.1 5/21/2026 D-2
C. Within 210 days of NTP
• Draft Signage Implementation Plan (costs, phasing, installation approach) • Outreach Summary Memorandum
• Draft General Plan Circulation Element Updates
D. Within 270 days of NTP
• Administrative Draft CEQA Document and Technical Reports E. Within 300 days of NTP
• Final Truck Route Map and GIS Data
• Final Signage Plan and Implementation Plan
• Final CEQA Documentation
• Final AB 98 Implementation Package
III. The Contract Officer may approve extensions for performance of the services in accordance with Section 3.2.
Our approach to conducting this project is based on our knowledge of the City, our familiarity with AB 98 requirements, our experience in updating General Plans and local truck route maps, and our team’s collective experience conducting CEQA environmental assessments. For each task, we have documented our expectation of information that the City will provide or roles that it will fulfill, as well as identifying deliverables.
Task 1: Existing Conditions and Truck Route Inventory
Task 1.1: Truck Route and Sign Inventory
Upon project initiation, Kittelson will begin our inventory of truck routes and related signage on City streets. First, we will confirm the designated truck routes within and around Grand Terrace. As part of this data collection, we will reach out to the City of Colton and the County of Riverside to confirm our understanding of streets that they designate as truck routes and connect to Grand Terrace city limits. While the City of Colton has published their updated truck routes (as of December 2025), the County of Riverside has not published information for truck routes on streets in unincorporated communities. We will work with County staff to strengthen our understanding of Main Street east of the Riverside Canal plus north/south-oriented streets to the south of Grand Terrace.
We will conduct fieldwork to inventory and review truck-related signage within the City. We will collect information including but not limited to:
• Sign type (regulatory, warning, or guide)
• CA MUTCD designation (if applicable)
• Size (including deviations from current CA MUTCD standards) • Quality and visibility
• Location, height, and orientation
• Picture
This will be supplemented with separate nighttime fieldwork to assess and photograph each sign’s retroreflectivity.
This information will be submitted as a detailed spreadsheet and aerial maps for City review.
Task 1.2: Baseline Conditions Data
Simultaneously with the truck route and signage inventory, we will collect and map relevant land use, demographic, and transportation data. While the RFP does not include this as a standalone task, we believe there is value in documenting and mapping this data to submit to City staff for their review. This way, we can confirm the validity of baseline assumptions (especially sensitive receptors) before proceeding with analysis and recommendations in Tasks 2 and 3. Information that we will gather and summarize will include:
• Locations of sensitive receptors, including childcare, adult/senior living, parks, and schools • Existing and proposed land use, including pending and approved projects • Existing and planned vehicular, public transit, walking, and bicycling facilities • Existing and future household density
• Disadvantaged communities
• Truck-involved crashes
As part of this task, we propose collecting 24-hour traffic counts and heavy vehicle classification data at up to 12 locations. In addition to informing our understanding of current truck traffic levels and patterns, this data will be used to assess the implications of truck route updates for the CEQA review.
Task 1 Deliverables
• Truck route sign inventory database
• Draft and final baseline conditions data memorandum
Task 2: AB 98 Compliance Review
Upon completing our inventory of existing and baseline transportation, land use, and demographic data, Kittelson will review the existing truck route network to determine its compliance with AB 98 requirements and potential shortcomings compared to the State’s requirements, which can be opportunities to modify the truck network. Our review will include looking at the following components of the existing truck network and its interactions:
• Proximity to residential areas
• Proximity to schools, parks, daycares, senior/adult living, and similar uses • Utilization of non-residential streets (e.g., arterials/thoroughfares or two-lane streets that are primarily commercial in nature)
• Connectivity to truck routes in adjacent jurisdictions (versus stubs or disconnected routes) • Connectivity to interstate on-/off-ramps
• Efficient connections between existing and future industrial, warehousing, and logistics uses and the state highway system
In addition to specific AB 98 requirements, we will look at the following characteristics to help inform subsequent steps and potential modifications to the network:
• Overlap of truck routes with transit routes/stops and existing or proposed on-street bike facilities • Proximity to higher density residential areas
• Proximity to disadvantaged communities
In addition to verifying compliance of the City’s existing truck route network, we will review the City’s zoning code, site design requirements, and General Plan goals and policies to confirm they address AB 98 requirements.
Task 2 Deliverables
• Draft and final AB 98 compliance memorandum
Task 3: Truck Route Network Analysis
Subsequent to and building upon our review of the existing truck route network’s AB 98 consistency, we will assess existing and potential future freight travel patterns within and through the city to determine what changes are necessary to the local truck route network to balance efficient goods movement and local quality of life. Information that we will use to understand where and how freight vehicle travel in Grand Terrace will include:
• Truck counts (collected as part of Task 1.2)
• Regional data on goods movement patterns, such as those published by Caltrans, SCAG, County of San Bernardino, SBCOG, and SBCTA
• Big Data sources such as Replica to illustrate origins-destinations and trends for trucks that currently travel through the city
• Existing truck-generating uses, as well as where shifts may occur in these uses that would affect local truck origins and destinations
• Sufficiency of intersection and street segment design including appropriate vertical and horizontal clearance for safe truck movement
• Planned vehicle capacity and design improvements
• Locations with a history of truck crashes, including truck-pedestrian and truck-bicyclist crashes
As part of this task, we will confirm if adjacent jurisdictions are currently considering changes to their local truck routes that would affect our analysis.
Task 3 Deliverables
• First draft, second draft, and final truck route map and technical memorandum • Updated truck route GIS Shapefile
Task 4: Truck Route Signage Plan
Subsequent to preparing the updated truck route map, we will prepare a truck route signage plan and accompanying implementation plan for the new truck route network, which may include streets that are currently not on the City’s designated truck network.
Task 4.1: Signage Plan and Designs
We will prepare a truck signage plan for the updated citywide truck route network. The signing plan will be developed using scaled aerial photography as a base, depicting the proposed location of each sign, sign details (including image and CA MUTCD designation), and other relevant data. Depending on the proposed changes to the truck route network, the signage plan could include additions or replacements of signs including truck route entry signs, confirmation signs, and end signs, as well as signs prohibiting trucks; if necessary, we will note where existing signs must be removed (for example, on a street removed from the truck route network).
The state specifically requires cities to provide “conspicuous” truck signage. And as we learned from our work on similar efforts, community feedback often includes trucks traveling on prohibited roads, which can be due to a lack of driver awareness of existing signage. Based on the results of our preliminary outreach and engagement (described in more detail in Task 5), we will explore ways to increase conspicuity for proposed signs. The most recent update to the CA MUTCD provides options for increasing the visibility of signs that are compliant with its standards, such as flags, yellow retroreflective sheeting, supplemental beacons, and border LEDs.
Task 4.2: Sign Implementation Plan
We will prepare a sign implementation plan for the updated truck route map and truck signage plan that will include information such as the sign installation details, schedule, phasing plan, and cost estimates. A potential approach to the phasing plan can include prioritizing locations with added or modified truck routes, identified substandard signage, or locations identified by the community as experiencing compliance-related issues.
Task 4 Deliverables
• Draft and final signage plan and sign location maps
• Draft and final sign implementation plan (sign installation details, schedule, phasing plan, and cost estimates) Task 5: Public Outreach and Community Engagement
The State’s new requirements include a significant focus on engaging the community, as noted in AB 98:
• The city or county shall provide opportunities for the involvement of citizens, California Native American Indian tribes, public agencies, public utility companies, and civic, educational, and other community groups through public hearings and any other means the planning agency deems appropriate, consistent with Section 65351. • The city or county shall make a diligent effort to achieve public participation of all economic segments of the community in the development of the changes required pursuant to this section.
The City’s RFP includes two joint public outreach study sessions with the Planning Commission and the City Council, as well as outreach materials such as a flyer. Given our experience on similar efforts in the region, we have found that additional, more focused engagement early in the process is necessary when considering changes to local truck networks. For example, through our engagement for Fontana’s AB 98 update, we received input that extended beyond the truck route map, including information on specific locations experiencing truck violations. This feedback informed both signage recommendations and enforcement efforts. Providing early opportunities for the community to share their perspectives outside of a commission or council study session demonstrates that concerns are being considered throughout the process, helps set realistic expectations, and meets the requirements of AB 98. Accordingly, our proposed scope of work includes engagement efforts such as workshops and an online mapping survey.
Task 5.1: Outreach and Engagement Documentation
At the beginning of this process, Kittelson will prepare an outreach and engagement plan that will include the following items for City approval:
• Stakeholder notification list
• Proposed locations and formats for workshops
• Graphics scheme for physical and digital materials
• Proposed dates for events and material distribution
In addition to resident and community groups (such as Colton Joint Unified School District and the Grand Terrace Lions Club), stakeholders on the notification list can include industry stakeholders (such as the Grand Terrace Chamber of Commerce and Wilden Pump & Engineering Company).
Upon completion of the outreach and engagement efforts, we will prepare a memorandum summarizing participation levels and comments at each event.
Task 5.2: Outreach Materials
We will prepare a bilingual project flyer that can be distributed both physically and digitally throughout the AB 98 update process, which may include information such as:
• Why the City is undertaking this effort
• Project timeline
• A link or QR code to the City’s project webpage
• Links to online surveys
We will also prepare a bilingual graphic template that can be updated throughout the process and posted on the City’s social media and other online channels, to provide updates on upcoming opportunities to participate.
Task 5.3: Outreach and Engagement Meetings
Given AB 98’s requirements to diligently engage the public, we propose including a focused in-person or virtual meeting early in the process to understand conditions and needs affecting the truck network signage and related efforts. Kittelson will lead and present at one meeting with residents and local stakeholder groups such as homeowners (to understand their concerns and priority locations related to truck traffic) and major logistics operators (to understand their existing needs and issues related to operating trucks on city streets, as well as their key routes and origins/destinations).
This focused meeting will supplement the two (2) joint public outreach sessions with the Planning Commission and City Council (that the Kittelson team will lead and present at).
Task 5.4: Bilingual Online Survey
To support the City’s engagement, at the beginning of the project, we will prepare a bilingual (English and Spanish) survey; this will be for resident and for truck operators in the city. The purpose of the survey would be to learn about the respective groups’
priorities, needs, and key locations. The survey can include an online map for dropping pins and comments. This map, which can be distributed with support from local stakeholder groups, is a crucial tool for engaging residents and stakeholders that cannot attend scheduled outreach events.
Task 5.5: SB 18 Consultation
Under Senate Bill (SB) 18, the City is required to consult with California Native American tribes regarding the proposed amendment to the General Plan. De Novo will contact the Native American Heritage Commission (NAHC) and request a SB 18 tribal contact list. Upon receiving the contact list, De Novo will draft letters to those tribes on the list and provide for City review, and then revise and finalize the letters and mail the letters via certified mail to the Tribal Representatives provided by the NAHC. Note, this scope of work assumes that the City will respond to and meet with tribal representatives if consultations are requested.
Task 5 Deliverables
• Outreach and engagement plan
• Outreach and engagement results memorandum
• Bilingual public outreach flyer
• Bilingual digital outreach materials
• Presentation materials for one (1) stakeholder and community meeting • Presentation materials for two (2) study sessions
• One (1) electronic copy of the draft and final SB 18 tribal consultation letter • Certified mailing of the SB 18 tribal consultation letter to each Tribal Representative on the NAHC SB 18 list Task 6: General Plan Circulation Element Amendment (AB 98 Compliance)
The State now requires that a general plan both identify truck routes and include requirements that logistics/warehousing projects use the defined truck routes. In addition to preparing a truck route map to be inserted in the Circulation Element as a new exhibit, we will prepare text changes to the Circulation Element to fulfill State requirements. This could include drafting a new goods movement section, goal, and accompanying policies and actions, or incorporating them into an existing circulation goal. Existing goals, policies, and actions will also be reviewed to determine if revisions (or deletions) are suggested. Note that this will not include any changes to other General Plan elements, such as the Land Use Element.
Task 6 Deliverables
• Draft and final Circulation Element review and updates memorandum • Updated Circulation Element text and truck route exhibit Task 7: Environmental Review (CEQA)
Updates to the truck route network and corresponding updates to the General Plan is a discretionary project requiring environmental review pursuant to CEQA. Modifications to the truck routes will likely result in shifts in truck traffic, concentrating truck travel along specific routes. It is anticipated the proposed modifications would involve avoiding or reducing to the extent possible truck trips within areas of sensitive receptors. The following work program will inform modifications to the truck routes and provide information needed to determine the appropriate CEQA review.
Task 7.1: Technical Analysis
To inform modifications to the truck routes and support the CEQA analysis, De Novo will prepare the following technical analysis:
Noise
Up to six (6) 24-hour noise measurements (long-term) and up to ten (10) 20-minute noise measurements (short-term) will be conducted to document baseline conditions along existing truck routes to calibrate the roadway noise model. The locations of the noise measurements will be determined in conjunction with City staff.
Existing and Existing plus truck traffic noise levels affected by the modifications to the truck routes will be calculated using FHWA modeling techniques to determine the increase in ambient noise levels. Existing and future noise levels will be modeled along identified truck routes using the SoundPLAN using the FHWA’s Traffic Noise Model calculations and traffic noise contour maps that graphically represent Existing and Buildout traffic noise modeling results will be prepared. The traffic noise modeling results will be evaluated relative to the City’s Noise/Land Use Compatibility Matrix.
A technical report documenting the existing noise environment, predicted future noise environment, and potential Project impacts pursuant to the City’s General Plan, Municipal Code, and CEQA significance thresholds will be prepared to support the CEQA compliance determination.
Air Quality and Health Risk Assessment
Working with the Project team and City staff, up to three (3) of the highest volume truck trip concentration areas with closest proximity to sensitive receptors along the proposed truck routes will be identified as a sample to conduct a health risk assessment screening analysis. The results of this assessment will provide important information in understanding if the proposed modifications to the truck routes will result in a potential health risk to sensitive receptors. If the results of the three highest volume truck trip concentration areas are not exceeded, it can be concluded that thresholds would not be exceeded along the truck routes. However, if the analysis exceeds the health risk thresholds within the sample areas, additional sites/areas may need to be analyzed to determine the extent of impacts. A separate scope and fee would be required for this additional analysis. A technical report documenting the air quality and health risk assessment findings will be prepared to support the CEQA compliance determination.
Task 7.2: CEQA Review Level Determination
To supplement the noise, air quality, and health risk technical analyses, Kittelson will assess the near- and long-term level of service (LOS) implications of the rerouted truck traffic compared to traffic impacts identified in the General Plan EIR, as well as analyze potential near- and long-term VMT impacts for informational purposes.
In addition to the technical analysis, De Novo will review modifications to the truck routes and any additional revisions to the City’s Circulation Element relative to the CEQA guidelines and provide a recommendation as to the appropriate CEQA clearance documentation. We will prepare a memorandum documenting the type of CEQA document recommended for the City’s consideration. This task assumes a meeting with City staff and legal counsel to confirm the environmental review and CEQA documentation.
Task 7.3: CEQA Documentation
Based on our experience with similar projects and for purposes of the scope of work, we anticipate an Addendum to the City of Grand Terrace General Plan Update FEIR will be prepared. However, if as part of Task 7.3 it is determined the Project would qualify for a CEQA Exemption or requires preparation of an Initial Study/(Mitigated) Negative Declaration, De Novo will modify the work program as needed to provide a legally defensible CEQA document. If it is determined that the CEQA clearance documentation will be more extensive or involve a reduced scope of work (compared to the Addendum work program and budget), an adjustment to the task order and budget will be provided.
Preparation of Administrative Draft Addendum
De Novo will prepare an Administrative Draft Addendum to the General Plan FEIR for the City’s review. The Addendum will include an Introduction, Description of the Proposed Project, Summary of the General Plan FEIR conclusions and comparative environmental analysis of the proposed Project, and Addendum Finding. The Environmental Analysis will provide analysis and cite substantial evidence that supports the City’s determination that the proposed Project does not meet the criteria for
preparing a subsequent or supplemental EIR under CEQA Guidelines Section 15162, if applicable. The Environmental Analysis will provide a summary of impacts associated with the proposed actions, as described in the FEIR, and includes an analysis of the potential impacts associated with the proposed General Plan Circulation Element amendments. As the Project would not provide for any changes to the development potential already analyzed by the General Plan FEIR, and no physical development or improvements are proposed, preparation of technical studies beyond those identified in Task 7.1 would not occur. This comparative analysis provides the City with the factual basis for determining whether any changes in the Project, any changes in circumstances, or any new information since the General Plan FEIR was certified would require additional environmental review or preparation of a Subsequent EIR or Supplemental EIR.
Preparation of Revised Draft Addendum
De Novo will respond to one complete set of consolidated comments from City staff on the Administrative Draft Addendum.
The Revised Draft Addendum will be provided to City staff with all revisions made in track changes to assist in review of the document.
Preparation of Final Addendum
De Novo will respond to a second review of the Addendum. This task assumes substantive comments will be raised as part of the Administrative Draft Addendum task. Upon approval, De Novo will prepare the Final Addendum for consideration by the Planning Commission and City Council.
Task 7 Deliverables
• One (1) electronic copy of the Noise technical report • One (1) electronic copy of the Air Quality/Health Risk Assessment technical report • One (1) electronic copy of the CEQA recommendation memorandum • One (1) electronic copy of the administrative draft, revised draft, and final Addendum Task 8: Public Hearing Support and Adoption Process
The Kittelson team will support City staff with Planning Commission and City Council hearings and presentations throughout the process. In addition to providing content for staff to incorporate into staff reports and presentations, we will attend and present at these hearings and support staff in responding to commissioner and councilmember questions. We will prepare materials and attend up to one (1) Planning Commission hearing and two (2) City Council meetings.
Task 8 Deliverables
• Materials for and attendance at one (1) Planning Commission meeting • Materials for and attendance at two (2) City Council meetings Task 9: Final AB 98 Implementation Package
We will prepare a final technical document containing the information prepared for Tasks 1 through 8 and confirming the City’s compliance with State requirements. In addition to containing the documentation, plans, and information prepared to date, the report will summarize key analyses and findings, as well as include an executive summary with a checklist verifying that the City meets each component of these new State requirements. In addition to the final report, our final submission package will include a standalone truck route map for City distribution, a shapefile of the final citywide truck route network, and other data collected during this process.
Task 9 Deliverables
• Final AB 98 Technical Report
• Final Truck Route Map
• Final Truck Route GIS data
Task 10: Meetings and Coordination
Task 10.1: Kickoff Meeting
Upon receiving Notice to Proceed (NTP), Kittelson will schedule and facilitate a virtual kickoff meeting with City of Grand Terrace staff to confirm the City’s goals, expectations, deliverables, work plan, review cycles, schedule, and communication protocols. Following this kickoff meeting, Kittelson will submit a data request list to City staff.
Task 10.2: Coordination Calls
After the kickoff meeting, Kittelson will hold up to three (3) check-in calls with City staff, as needed.
Task 10 Deliverables
• Virtual kickoff meeting
• Data request memorandum
• Three (3) calls
AGENDA REPORT
MEETING DATE: May 26, 2026
TITLE: Award Agreement to Pineda General Construction, Inc for Public Works Building Renovation Project
PRESENTED BY: Ruben Montano, Public Works Project Manager RECOMMENDATION: AWARD THE PUBLIC WORKS BUILDING RENOVATION PROJECT CONTRACT IN THE AMOUNT OF $48,000; AND
AUTHORIZE THE CITY MANAGER TO EXECUTE THE AGREEMENT AND
ANY RELATED DOCUMENTS, SUBJECT TO CITY ATTORNEY
APPROVAL AS TO FORM
2030 VISION STATEMENT:
The staff report supports goal # 4 Develop and Implement Successful Partnerships.
BACKGROUND:
The building, formerly known as the EOC Building, was originally used as the City’s first City Hall and has more recently been used for storage. The City is now proposing to renovate the building to serve as a maintenance and code enforcement office, along with a staff locker room and break area.
In April 2026, the City issued a Request for Proposals (RFP) for the renovation. The project includes upgrades such as flooring, windows, wall finishes, restroom improvements (including a shower and sink), kitchen cabinetry, and related electrical and plumbing work. The goal is to improve functionality and provide a usable workspace for staff.
DISCUSSION:
This project was advertised for bid on April 21, 2026, and bids closed on April 29, 2026. The City received four bid responses; however, one bid was rejected due to incompleteness.
The project consists of renovating an existing City facility to improve working conditions and repurpose the building to better meet operational needs. The scope of work includes demolition, framing, finishes, and system upgrades, including plumbing, drywall, and electrical improvements.
Pineda General Construction, Inc. submitted the lowest responsive bid in the amount of $82,495.
Following negotiations and revisions to the project scope to remain within the mid-year budget allowance of $50,000, staff recommends awarding the contract to Pineda General Construction, Inc., as the lowest responsive and responsible bidder, in accordance with public contracting requirements.
ENVIRONMENTAL IMPACT:
The proposed project has been reviewed in accordance with the California Environmental Quality Act (CEQA) and has been determined to have no significant environmental impact, as the work consists of minor interior renovations to an existing facility.
FISCAL IMPACT:
The total project cost of $48,000 will be funded through the City’s approved budget under the Public Works/Capital Improvement account, with no anticipated long-term financial impact beyond routine maintenance.
PW Agreement – Pineda General Construction, Inc. (Public Works Building Renovation Project) May 26, 2026
AGREEMENT FOR PUBLIC WORKS SERVICES
By and Between
CITY OF GRAND TERRACE
and
PINEDA GENERAL CONSTRUCTION, INC.
PW Agreement – Pineda General Construction, Inc. (Public Works Building Renovation Project) May 26, 2026
AGREEMENT FOR PUBLIC WORKS SERVICES
BETWEEN THE CITY OF GRAND TERRACE AND
PINEDA GENERAL CONSTRUCTION, INC.
This AGREEMENT FOR PUBLIC WORKS SERVICES (herein “Agreement”) is made and entered into this 26th day of May, 2026 by and between the City of Grand Terrace, a California municipal corporation (“City”) and Pineda General Construction, Inc., a California corporation (“Contractor”). City and Contractor may sometimes be referred to herein, individually as a “Party” or collectively, as the “Parties.”
RECITALS
A. The City of Grand Terrace (“City”) is authorized to enter into this Agreement for a public project or maintenance work pursuant to Chapter 3.26 of the Grand Terrace Municipal Code (“GTMC”), which establishes bidding and contracting procedures in conformance with the Uniform Public Construction Cost Accounting Act (Public Contract Code section 22000 et seq.).
The City solicited and received bids in accordance with the formal bidding procedures set forth in GTMC section 3.26.050, and the contract is awarded to the lowest responsible bidder as required by law.
B. Contractor, following submission of a proposal or bid for the performance of the services defined and described particularly in Article 1 of this Agreement, was selected by the City to perform those services.
C. Pursuant to the City of Grand Terrace Municipal Code and California state law, City has authority to enter into and execute this Agreement.
D. The Parties desire to formalize the selection of Contractor for performance of the services described herein and desire that the terms of that performance be as particularly defined and described herein.
E. Campaign Contributions: This Agreement is subject to Government Code section 84308 (commonly known as the Levine Act), as amended by Senate Bill 1439 (2022), Senate Bill 1181 (2024), and Senate Bill 1243 (2024); unless the contract is (1) competitively bid; (2) under $50,000; (3) amendments valued at more than 10 percent of the value of the contract or fifty thousand dollars ($50,000), whichever is less; and (4) labor contracts, in which case this provision does not apply. Contractor shall disclose any contribution to an elected or appointed City official’s campaign or committee in an amount of more than five hundred dollars ($500) made within 12 months preceding the Commencement Date, by Contractor, its, her, or his agent, or another party affiliated with Contractor. Contractor shall provide a signed copy of the attached Campaign Contribution Disclosure Form to City prior to, or concurrent with, Contractor's execution of this Agreement and no later than the Commencement Date.
OPERATIVE PROVISIONS
NOW, THEREFORE, in consideration of the mutual promises and covenants made by the Parties and contained herein and other consideration, the value and adequacy of which are hereby acknowledged, the Parties agree as follows:
PW Agreement – Pineda General Construction, Inc. (Public Works Building Renovation Project) May 26, 2026 ARTICLE 1. WORK OF CONTRACTOR
1.1 Scope of Work.
Contractor shall perform all of the work, furnish all labor, materials, equipment, tools, utility services, and transportation, and comply with all of the specification and requirements set forth in the Project Documents for the Project (as each such terms are defined below), in compliance with all terms and conditions of this Agreement, and as described in the “Scope of Work” attached hereto as Exhibit “A” and incorporated herein by this reference, which may be referred to herein as the “services” or “work” hereunder. As a material inducement to the City entering into this Agreement, Contractor represents and warrants that it has the qualifications, experience, and facilities necessary to properly perform the work required under this Agreement in a thorough, competent, and professional manner, and is experienced in performing the work and services contemplated herein. Contractor shall at all times faithfully, competently and to the best of its ability, experience and talent, perform all services described herein. Contractor covenants that it shall follow the highest professional standards in performing the work and services required hereunder and that all materials will be both of good quality as well as fit for the purpose intended.
For purposes of this Agreement, the phrase “highest professional standards” shall mean those standards of practice recognized by one or more first-class firms performing similar work under similar circumstances.
1.2 Project Documents.
The Scope of Work shall include the proposal and any other documents submitted from Contractor to the City for the project entitled Public Works Building Renovation Project (the “Project”), including any documents or exhibits referenced therein (collectively, “Project Documents”), all of which are incorporated herein by this reference. In the event of any inconsistency between the terms of the Project Documents and this Agreement, the terms of this Agreement shall govern.
1.3 Compliance with Law.
Contractor shall keep itself informed concerning, and shall render all services hereunder in accordance with, all ordinances, resolutions, statutes, rules, and regulations of the City and any Federal, State or local governmental entity having jurisdiction in effect at the time service is rendered.
1.4 Compliance with California Labor Law.
(a) Public Work. The Parties acknowledge that the work to be performed under this Agreement is a “public work” as defined in Labor Code Section 1720 and that this Agreement is therefore subject to the requirements of Division 2, Part 7, Chapter 1 (commencing with Section 1720) of the California Labor Code relating to public works contracts and the rules and regulations established by the Department of Industrial Relations (“DIR”) implementing such statutes. The work performed under this Agreement is subject to compliance monitoring and enforcement by the DIR. Contractor shall post job site notices, as prescribed by state law and DIR regulations. Pursuant to Labor Code Section 1771.1, Contractor and all subcontractors must be registered with, and pay an annual fee to, the DIR prior to and during the performance of any work under this Agreement. Contractor shall notify the City in writing immediately, and in no case more than twenty-four (24) hours, after receiving any information that
PW Agreement – Pineda General Construction, Inc. (Public Works Building Renovation Project) May 26, 2026 Contractor’s or any of its subcontractors’ DIR registration status has been suspended, revoked, expired, or otherwise changed.
(b) Prevailing Wages. Contractor shall pay prevailing wages to the extent required by Labor Code Section 1771. Pursuant to Labor Code Section 1773.2, copies of the prevailing rate of per diem wages are on file at City Hall and will be made available to any interested party on request. By initiating any work under this Agreement, Contractor acknowledges receipt of a copy of the DIR determination of the prevailing rate of per diem wages, and Contractor shall post a copy of the same at each job site where work is performed under this Agreement. (c) Penalty for Failure to Pay Prevailing Wages. Contractor shall comply with and be bound by the provisions of Labor Code Sections 1774 and 1775 concerning the payment of prevailing rates of wages to workers and the penalties for failure to pay prevailing wages. The Contractor shall, as a penalty to the City, forfeit two hundred dollars ($200) for each calendar day, or portion thereof, for each worker paid less than the prevailing rates as determined by the DIR for the work or craft in which the worker is employed for any public work done pursuant to this Agreement by Contractor or by any subcontractor. (d) Payroll Records. Contractor shall comply with and be bound by the provisions of Labor Code Section 1776, which requires Contractor and each subcontractor to: keep accurate payroll records and verify such records in writing under penalty of perjury, as specified in Section 1776; certify and make such payroll records available for inspection as provided by Section 1776; and inform the City of the location of the records. (e) Apprentices. Contractor shall comply with and be bound by the provisions of Labor Code Sections 1777.5, 1777.6, and 1777.7 and California Code of Regulations Title 8, Section 200 et seq. concerning the employment of apprentices on public works projects.
Contractor shall be responsible for compliance with these aforementioned Sections for all apprenticeable occupations. Prior to commencing work under this Agreement, Contractor shall provide City with a copy of the information submitted to any applicable apprenticeship program.
Within sixty (60) days after concluding work pursuant to this Agreement, Contractor and each of its subcontractors shall submit to the City a verified statement of the journeyman and apprentice hours performed under this Agreement.
(f) Eight-Hour Work Day. Contractor acknowledges that eight (8) hours labor constitutes a legal day's work. Contractor shall comply with and be bound by Labor Code Sections 1810 and 1811. As required under Labor Code Section 1812, Contractor and each of 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 them in connection with the work performed under the terms of this Agreement.
(g) Penalties for Excess Hours. Contractor shall comply with and be bound by the provisions of Labor Code Section 1813 concerning penalties for workers who work excess hours. The Contractor shall, as a penalty to the City, forfeit twenty-five dollars ($25) for each worker employed in the performance of this Agreement by the Contractor or by any subcontractor for each calendar day during which such worker is required or permitted to work more than eight (8) hours in any one calendar day and forty (40) hours in any one calendar week in violation of the provisions of Division 2, Part 7, Chapter 1, Article 3 of the Labor Code. Pursuant to Labor Code section 1815, work performed by employees of Contractor in excess of eight (8) hours per day, and forty (40) hours during any one week shall be permitted upon public work upon
PW Agreement – Pineda General Construction, Inc. (Public Works Building Renovation Project) May 26, 2026 compensation for all hours worked in excess of eight (8) hours per day at not less than one and one-half (1½) times the basic rate of pay.
(h) Workers’ Compensation. California Labor Code Sections 1860 and 3700 provide that every employer will be required to secure the payment of compensation to its employees if it has employees. In accordance with the provisions of California Labor Code Section 1861, Contractor certifies as follows:
“I am aware of the provisions of Section 3700 of the Labor Code 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 I will comply with such provisions before commencing the performance of the work of this contract.”
Contractor’s Authorized Initials _______________
Arturo J. Pineda
Owner
(i) Contractor’s Responsibility for Subcontractors. For every subcontractor who will perform work under this Agreement, Contractor shall be responsible for such subcontractor's compliance with Division 2, Part 7, Chapter 1 (commencing with Section 1720) of the California Labor Code, and shall make such compliance a requirement in any contract with any subcontractor for work under this Agreement. Contractor shall be required to take all actions necessary to enforce such contractual provisions and ensure subcontractor's compliance, including without limitation, conducting a review of the certified payroll records of the subcontractor on a periodic basis or upon becoming aware of the failure of the subcontractor to pay his or her workers the specified prevailing rate of wages. Contractor shall diligently take corrective action to halt or rectify any such failure by any subcontractor.
1.5 Licenses, Permits, Fees and Assessments.
Contractor shall obtain at its sole cost and expense such licenses, permits, registrations, and approvals as may be required by law for the performance of the services required by this Agreement. Contractor shall have the sole obligation to pay for any fees, assessments and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for the Contractor’s performance of the services required by this Agreement, and shall indemnify, defend and hold harmless City, its officers, employees or agents of City, against any such fees, assessments, taxes, penalties or interest levied, assessed or imposed against City hereunder.
1.6 Familiarity with Work.
(a) By executing this Agreement, Contractor warrants that Contractor (i) has thoroughly investigated and considered the scope of work to be performed, (ii) has carefully considered how the services should be performed, and (iii) fully understands the facilities, difficulties and restrictions attending performance of the services under this Agreement. If the services involve work upon any site, Contractor warrants that Contractor has or will investigate the site and is or will be fully acquainted with the conditions there existing, prior to commencement of services hereunder.
PW Agreement – Pineda General Construction, Inc. (Public Works Building Renovation Project) May 26, 2026 (b) Pursuant to Public Contract Code Section 7104, Contractor shall promptly, and before the following conditions are disturbed, notify the City, in writing, of any: (i) material Contractor believes may be hazardous waste as defined in Section 25117 of the Health & Safety Code required to be removed to a Class I, II, or III disposal site in accordance with existing law; (ii) subsurface, unknown or latent conditions at the Project site, materially different from those indicated by information about the Project site made available to bidders prior to the deadline for submitting bids on the Project; or (iii) unknown physical conditions at the Project site of any unusual nature, different from those ordinarily encountered and generally recognized as inherent in work of the character provided for in this Agreement, and will materially affect the performance of the services hereunder.
(c) City shall promptly investigate the conditions, and if it finds that the conditions do materially differ, or do involve hazardous waste, and cause a decrease or increase in Contractor's cost of, or the time required for, the performance of any part of the work, the City shall issue a Change Order per Section 1.10 of this Agreement. (d) In the event that a dispute arises between City and Contractor whether the conditions materially differ, or involve hazardous waste, or cause a decrease or increase in Contractor's cost of, or time required for, performance of any part of the work, Contractor shall not be excused from any scheduled completion date set, but shall proceed with all work to be performed under this Agreement. 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 Parties.
(e) City will compensate Contractor to the extent required by Government Code Section 4215 by issuing a Change Order per Section 1.10 of this Agreement.
1.7 Protection and Care of Work and Materials.
The Contractor shall adopt reasonable methods, including providing and maintaining storage facilities, during the life of this Agreement to furnish continuous protection to the work, and the equipment, materials, papers, documents, plans, studies and/or other components thereof to prevent losses or damages, and shall be responsible for all such damages, to persons or property, until acceptance of the work by City, except such losses or damages as caused by City’s own negligence. Stored materials shall be reasonably accessible for inspection. Contractor shall not, without City’s consent, assign, sell, mortgage, hypothecate, or remove equipment or materials which have been installed or delivered and which may be necessary for the completion of the work.
1.8 Warranty.
Contractor warrants all work under this Agreement (which for purposes of this Section shall be deemed to include unauthorized work which has not been removed or corrected and any non-conforming construction or materials incorporated into the work) to be of good quality and free from any defective or faulty material and workmanship. Contractor agrees that for a period of one year (or the period of time specified elsewhere in this Agreement, or the Project Documents, or in any guarantee or warranty provided by any manufacturer or supplier of equipment or materials incorporated into the work, whichever is later) after the date of final acceptance by the City for the Project, Contractor shall within ten (10) days after being notified in writing by the City of any defect in the work or non-conformance of the work to the requirements under this Agreement, commence and prosecute with due diligence all work necessary to fulfill
PW Agreement – Pineda General Construction, Inc. (Public Works Building Renovation Project) May 26, 2026 the terms of the warranty at its sole cost and expense. Contractor shall act as soon as requested by the City in response to any emergency condition or situation. In addition, Contractor shall, at its sole cost and expense, repair, remove and replace any portions of the work (or work of other subcontractors) damaged by its defective work or which becomes damaged in the course of repairing or replacing defective work. For any work so corrected, Contractor's obligation hereunder to correct defective work shall be reinstated for an additional one year period, commencing with the date of acceptance of such corrected work. Contractor shall perform such tests as the City may require to verify that any corrective actions, including, without limitation, redesign, repairs, and replacements comply with the requirements of this Agreement. All costs associated with such corrective actions and testing, including the removal, replacement, and reinstitution of equipment and materials necessary to gain access, shall be the sole responsibility of the Contractor. All warranties and guarantees of subcontractors, suppliers and manufacturers with respect to any portion of the work, whether express or implied, are deemed to be obtained by Contractor for the benefit of the City, regardless of whether or not such warranties and guarantees have been transferred or assigned to the City by separate agreement and Contractor agrees to enforce such warranties and guarantees, if necessary, on behalf of the City. In the event that Contractor fails to perform its obligations under this Section, or under any other warranty or guaranty under this Agreement or the Project Documents, to the reasonable satisfaction of the City, the City shall have the right to correct and replace any defective or non-conforming work and any work damaged by such work or the replacement or correction thereof at Contractor's sole expense.
Contractor shall be obligated to fully reimburse the City for any expenses incurred hereunder upon demand.
1.9 Inspection by City.
In connection with the performance of this Agreement, the City shall have the authority to enter the worksite at any time for the purpose of identifying the existence of conditions, either actual or threatened, that may present a danger or hazard to any and all employees. The Contractor agrees that the City, in its sole authority and discretion, may order the immediate abatement of any and all conditions that may present an actual or threatened danger or hazard to any and all employees at the worksite Contractor acknowledges the provisions of Section 6400 of the Labor Code, which requires that employers shall furnish employment and a place of employment that is safe and healthful for all employees working therein. In the event the City identifies the existence of any condition that presents an actual or threatened danger or hazard to any or all employees at the worksite, the City is hereby authorized to order the immediate abatement of that actual or threatened condition pursuant to this Section.
The City may also, at its sole authority and discretion, issue an immediate stop work order to the Contractor to ensure that no employee working at the worksite is exposed to a dangerous or hazardous condition. Any stop work order issued by the City to the Contractor in accordance with the provisions of this section shall not give rise to any claim or cause of action for delay damages by the Contractor or the Contractor’s agents or subcontractors against the City.
1.10 Additional Work and Change Orders.
(a) City shall have the right at any time during the performance of the services, without invalidating this Agreement, to order extra work beyond that specified in the Scope of Work or make changes to the work by altering, adding to or deducting from said work.
No such extra work may be undertaken unless a written change order is first given by the Contract Officer to the Contractor, incorporating therein any adjustment in (i) the Contract Sum, and/or (ii)
PW Agreement – Pineda General Construction, Inc. (Public Works Building Renovation Project) May 26, 2026 the time to perform this Agreement, which said adjustments are subject to the written approval of the Contractor (“Change Order”). All Change Orders must be signed by the Contractor and Contract Officer prior to commencing the extra work thereunder. (b) Any increase in compensation of up to ten percent (10%) of the Contract Sum or $25,000, whichever is less; or any increase in the time to perform of up to one hundred eighty (180) days may be approved by the Contract Officer, provided that such increase does not materially affect the work in a manner or materially and detrimentally affect the interest of the City. Any greater increases, taken either separately or cumulatively, must be approved by the City Council.
(c) Any adjustment in the Contract Sum for a Change Order must be in accordance with the rates set forth in the Schedule of Compensation in Exhibit “C”. If the rates in the Schedule of Compensation do not cover the type of work in the Change Order, the cost of such work shall not exceed an amount agreed upon in writing and signed by Contractor and Contract Officer. If the cost of the Change Order cannot be agreed upon, the City will pay for actual work of the Change Order that is completed to the satisfaction of the City, as follows:
(i) Labor: The cost of labor shall be the actual cost for wages of workers and subcontractors performing the work for the Change Order at the time such work is done. The use of labor classifications that would increase the cost of such work shall not be permitted.
(ii) Materials and Equipment: The cost of materials and equipment shall be at cost to Contractor or the lowest current price for which such materials and equipment are reasonably available at the time the work is done, whichever is lower. (iii) Daily Reporting: If the cost of the extra work cannot be agreed upon, the Contractor must provide a daily report that includes all invoices for labor, materials and equipment costs for the work under the Change Order. The daily report must include:
list of names of workers, classifications, and hours worked; description and list of quantities of materials used; type of equipment, size, identification number, and hours of operation, including loading and transportation, if applicable; description of other City authorized services and expenditures in such detail as the City may require. Failure to submit a daily report by the close of the next working day may, at the City’s sole and absolute discretion, waive the Contractor’s rights to payment for the work performed for that day.
(d) It is expressly understood by Contractor that the provisions of this Section 1.10 shall not apply to services specifically set forth in the Scope of Work. Contractor hereby acknowledges that it accepts the risk that the services to be provided pursuant to the Scope of Work may be more costly or time consuming than Contractor anticipates and that Contractor shall not be entitled to additional compensation therefor. City may in its sole and absolute discretion have similar work done by other contractors. (e) No claim for an increase in the Contract Sum or time for performance shall be valid unless the procedures established in this Section are followed.
1.11 Contractor Modifications.
Additional terms and conditions of this Agreement, if any, which are made a part hereof are set forth in the “Contractor Modifications” attached hereto as Exhibit “B” and
PW Agreement – Pineda General Construction, Inc. (Public Works Building Renovation Project) May 26, 2026 incorporated herein by this reference. In the event of a conflict between the provisions of Exhibit “B” and any other provisions of this Agreement, the provisions of Exhibit “B” shall govern.
ARTICLE 2. COMPENSATION AND METHOD OF PAYMENT.
2.1 Contract Sum.
Subject to any limitations set forth in this Agreement, City agrees to pay Contractor the amounts specified in the “Schedule of Compensation” attached hereto as Exhibit “C” and incorporated herein by this reference. The total compensation, including reimbursement for actual expenses, shall not exceed Forty-Eight Thousand Dollars and Zero Cents ($48,000.00) (the “Contract Sum”), unless additional compensation is approved pursuant to Section 1.10.
2.2 Method of Compensation.
The method of compensation may include: (i) a lump sum payment upon completion; (ii) payment in accordance with specified tasks or the percentage of completion of the services less the contract retention; (iii) payment for time and materials based upon the Contractor’s rates as specified in the Schedule of Compensation, provided that (a) time estimates are provided for the performance of sub tasks, (b) contract retention is maintained and (c) the Contract Sum is not exceeded; or (iv) such other methods as may be specified in the Schedule of Compensation.
2.3 Reimbursable Expenses.
Compensation may include reimbursement for actual and necessary expenditures for reproduction costs, telephone expenses, and travel expenses approved by the Contract Officer in advance, or actual subcontractor expenses of an approved subcontractor pursuant to Section 4.5, and only if specified in the Schedule of Compensation. The Contract Sum shall include the attendance of Contractor at all Project meetings reasonably deemed necessary by the City.
Coordination of the performance of the work with City is a critical component of the services. If Contractor is required to attend additional meetings to facilitate such coordination, Contractor shall not be entitled to any additional compensation for attending said meetings.
2.4 Invoices.
Each month Contractor shall furnish to City an original invoice for all work performed and expenses incurred during the preceding month in a form approved by City’s Finance Director and/or the Contract Officer. By submitting an invoice for payment under this Agreement, Contractor is certifying compliance with all provisions of the Agreement. The invoice shall contain all information specified in Exhibit “C”, include a copy of Contractor’s certified payroll and proof that the certified payroll has been submitted to the DIR, and shall detail charges for all necessary and actual expenses by the following categories: labor (by sub-category), travel, materials, equipment, supplies, and sub-contractor contracts. Sub-contractor charges shall also be detailed by such categories. Contractor shall also submit a list of the prevailing wage rates for all employees and subcontractors providing services under this Agreement, as applicable, with Contractor’s first invoice. Contractor shall not invoice City for any duplicate services performed by more than one person.
City shall, as soon as practicable, independently review each invoice submitted by the Contractor to determine whether the work performed and expenses incurred are in compliance
PW Agreement – Pineda General Construction, Inc. (Public Works Building Renovation Project) May 26, 2026 with the provisions of this Agreement. Except as to any charges for work performed or expenses incurred by Contractor which are disputed by City, or as provided in Section 7.3, City will cause Contractor to be paid within thirty (30) days of receipt of Contractor’s correct and undisputed invoice; however, Contractor acknowledges and agrees that due to City warrant run procedures, the City cannot guarantee that payment will occur within this time period. In the event that City does not cause Contractor to be paid within thirty (30) days of receipt of an undisputed and properly submitted invoice, Contractor shall be entitled to the payment of interest to the extent allowed under Public Contract Code Section 20104.50. In the event any charges or expenses are disputed by City, the original invoice shall be returned by City to Contractor, not later than seven (7) days after receipt by the City, for correction and resubmission. Returned invoices shall be accompanied by a document setting forth in writing the reasons why the payment request was rejected. Review and payment by the City of any invoice provided by the Contractor shall not constitute a waiver of any rights or remedies provided herein or any applicable law.
2.5 Waiver.
Payment to Contractor for work performed pursuant to this Agreement shall not be deemed to waive any defects in the work performed by Contractor.
2.6 Retention.
City will deduct a five percent (5%) retention from all progress payments. In accordance with Public Contract Code Section 22300, which is hereby incorporated into this Agreement, City shall permit the substitution of securities for any moneys withheld by City to ensure performance under this Agreement. The retention held by the City shall be released within sixty (60) days after the date of completion of the work and the Project, as required by Government Code Section 7107.
In the event of a dispute between City and Contractor, City may withhold from the final payment an amount not to exceed one hundred fifty percent (150%) of the disputed amount.
ARTICLE 3. PERFORMANCE SCHEDULE
3.1 Time of Essence.
Time is of the essence in the performance of this Agreement.
3.2 Schedule of Performance.
Contractor shall commence the services pursuant to this Agreement upon receipt of a written notice to proceed (“NTP”) by the Contract Officer and shall perform all services within the time period(s) established in the “Schedule of Performance” attached hereto as Exhibit “D” and incorporated herein by this reference. When requested by the Contractor, extensions to the time period(s) specified in the Schedule of Performance may be approved in writing by the Contract Officer but not exceeding one hundred eighty (180) days cumulatively.
3.3 Force Majeure.
The time period(s) specified in the Schedule of Performance for performance of the services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of the Contractor, including, but not restricted to, acts of God or of the public enemy, unusually severe weather, fires, earthquakes, floods, epidemics, quarantine restrictions, riots, strikes, freight embargoes, wars,
PW Agreement – Pineda General Construction, Inc. (Public Works Building Renovation Project) May 26, 2026 litigation, and/or acts of any governmental agency, including the City, if the Contractor shall within ten (10) days of the commencement of such delay notify the Contract Officer in writing of the causes of the delay. The Contract Officer shall ascertain the facts and the extent of delay, and extend the time for performing the services for the period of the enforced delay when and if in the judgment of the Contract Officer such delay is justified. The Contract Officer’s determination shall be final and conclusive upon the Parties to this Agreement. In no event shall Contractor be entitled to recover damages against the City for any delay in the performance of this Agreement, however caused, Contractor’s sole remedy being extension of the Agreement pursuant to this Section.
3.4 Inspection and Final Acceptance.
City may inspect and accept or reject any of Contractor’s work under this Agreement, either during performance or when completed. City shall reject or finally accept Contractor’s work within forty-five (45) days after submitted to City. City shall accept work by a timely written acceptance, otherwise work shall be deemed to have been rejected. If City finds that Contractor’s work does not meet the requirements and standards set forth in this Agreement, Contractor shall remedy any defects in the work at Contractor’s sole expense, following notice by the City. City’s acceptance shall be conclusive as to such work except with respect to latent defects, fraud and such gross mistakes as to amount to fraud. Acceptance of any work by City shall not constitute a waiver of any of the provisions of this Agreement including, but not limited to, Articles 1 and 5, pertaining to warranty and indemnification and insurance, respectively.
3.5 Term.
Unless earlier terminated in accordance with Article 7 of this Agreement, this Agreement shall continue in full force and effect until completion of the services but not exceeding one (1) year from the date hereof, except as otherwise provided in the Schedule of Performance (Exhibit “D”). .
ARTICLE 4. COORDINATION OF WORK
4.1 Representatives and Personnel of Contractor.
The following principals of Contractor (“Principals”) are hereby designated as being the principals and representatives of Contractor authorized to act on its behalf with respect to the work specified herein and make all decisions in connection therewith:
Arturo J. Pineda, Owner
It is expressly understood that the experience, knowledge, capability and reputation of the foregoing Principals were a substantial inducement for City to enter into this Agreement.
Therefore, the Principals shall be responsible during the term of this Agreement for directing all activities of Contractor and devoting sufficient time to personally supervise the services hereunder.
All personnel of Contractor, and any authorized agents, shall at all times be under the exclusive direction and control of the Principals. For purposes of this Agreement, the Principals may not be replaced nor may their responsibilities be substantially reduced by Contractor without the express written approval of City. Additionally, Contractor shall make every reasonable effort to maintain the stability and continuity of Contractor’s staff and subcontractors, if any, assigned to perform the services required under this Agreement. Contractor shall notify City of any changes in
PW Agreement – Pineda General Construction, Inc. (Public Works Building Renovation Project) May 26, 2026 Contractor’s staff and subcontractors, if any, assigned to perform the services required under this Agreement, prior to and during any such performance.
4.2 Status of Contractor.
Contractor shall have no authority to bind City in any manner, or to incur any obligation, debt or liability of any kind on behalf of or against City, whether by contract or otherwise, unless such authority is expressly conferred under this Agreement or is otherwise expressly conferred in writing by City. Contractor shall not at any time or in any manner represent that Contractor or any of Contractor’s officers, employees, or agents are in any manner officials, officers, employees or agents of City. Neither Contractor, nor any of Contractor’s officers, employees or agents, shall obtain any rights to retirement, health care or any other benefits which may otherwise accrue to City’s employees. Contractor expressly waives any claim Contractor may have to any such rights.
4.3 Contract Officer.
The Contract Officer shall be Ruben Montano, or such person as may be designated by the City Manager. It shall be the Contractor’s responsibility to assure that the Contract Officer is kept informed of the progress of the performance of the services and the Contractor shall refer any decisions which must be made by City to the Contract Officer. Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the Contract Officer.
The Contract Officer shall have authority, if specified in writing by the City Manager, to sign all documents on behalf of the City required hereunder to carry out the terms of this Agreement.
4.4 Independent Contractor.
Neither the City nor any of its employees shall have any control over the manner, mode or means by which Contractor, its agents or employees, perform the services required herein, except as otherwise set forth herein. City shall have no voice in, or authority over, the selection, discharge, supervision or control of Contractor’s employees, servants, representatives or agents, or in fixing their number, compensation or hours of service. Contractor shall perform all services required herein as an independent contractor of City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role.
Contractor shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. City shall not in any way or for any purpose become or be deemed to be a partner of Contractor in its business or otherwise or a joint venturer or a member of any joint enterprise with Contractor.
4.5 Prohibition Against Subcontracting or Assignment.
The experience, knowledge, capability and reputation of Contractor, its principals and employees were a substantial inducement for the City to enter into this Agreement. Therefore, Contractor shall not contract with any other entity to perform in whole or in part the services required hereunder without the express written approval of the City. All subcontractors shall obtain, at its or Contractor’s expense, such licenses, permits, registrations and approvals (including from the City) as may be required by law for the performance of any services or work under this Agreement. In addition, neither this Agreement nor any interest herein may be transferred, assigned, conveyed, hypothecated or encumbered voluntarily or by operation of law, whether for the benefit of creditors or otherwise, without the prior written approval of City. Transfers restricted
PW Agreement – Pineda General Construction, Inc. (Public Works Building Renovation Project) May 26, 2026 hereunder shall include the transfer to any person or group of persons acting in concert of more than twenty five percent (25%) of the present ownership and/or control of Contractor, taking all transfers into account on a cumulative basis. In the event of any such unapproved transfer, including any bankruptcy proceeding, this Agreement shall be void. No approved transfer shall release the Contractor or any surety of Contractor of any liability hereunder without the express consent of City.
ARTICLE 5. INSURANCE, INDEMNIFICATION AND BONDS
5.1 Insurance Coverages.
Without limiting Contractor’s indemnification obligations to the City (as set forth below), and prior to commencement of any services under this Agreement, Contractor 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 satisfactory to City. (a) General Liability Insurance. Contractor 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 Product and Completed Operations coverage under the policy shall extend a minimum of three (3) years after completion of the Project. Coverage shall be included on behalf of the insured for covered claims arising out of the actions of independent contractors. If the insured is using subcontractors, the policy must include work performed “by or on behalf” of the insured. The policy shall contain no language that would invalidate or remove the insurer’s duty to defend or indemnify for claims or suits expressly excluded from coverage. The policy shall specifically provide for a duty to defend on the part of the insurer. (b) Automobile Liability Insurance. Contractor 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 the Contractor arising out of or in connection with the services 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 combined single limit for each accident. (c) Professional Liability (errors & omissions) Insurance. Contractor 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 Contractor agrees to maintain continuous coverage through a period no less than three (3) years after completion of the services required by this Agreement. (d) Workers’ Compensation Insurance. Contractor shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000).
(e) Subcontractors. Contractor shall include all subcontractors as insureds under its policies or shall furnish separate certificates and certified endorsements for each subcontractor. All coverages for subcontractors shall include all of the requirements stated herein.
PW Agreement – Pineda General Construction, Inc. (Public Works Building Renovation Project) May 26, 2026 (f) Additional Insurance. Policies of such other insurance, as may be required in the Contractor Modifications in Exhibit “B”.
5.2 General Insurance Requirements.
(a) Proof of Insurance. Contractor shall provide certificates of insurance to City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers’ compensation. Insurance certificates and endorsements must be approved by City’s Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with City at all times during the term of this Agreement. City reserves the right to require complete, certified copies of all required insurance policies, at any time.
(b) Duration of Coverage. Contractor shall procure and maintain for the duration of this Agreement insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the services hereunder by Contractor, its agents, representatives, employees or subcontractors. (c) Primary/noncontributing. Coverage provided by Contractor 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 noncontributory 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.
(d) 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 Contractor or City will withhold amounts sufficient to pay premium from Contractor payments. In the alternative, City may cancel this Agreement. (e) Acceptable Insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or that is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VI (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the City’s Risk Manager.
(f) Waiver of Subrogation. 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 Contractor or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Contractor hereby waives its own right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its subcontractors.
(g) Enforcement of Contract Provisions (non-estoppel). Contractor acknowledges and agrees that any actual or alleged failure on the part of the City to inform
PW Agreement – Pineda General Construction, Inc. (Public Works Building Renovation Project) May 26, 2026 Contractor of non-compliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder.
(h) Requirements Not Limiting. Requirements of specific coverage features or limits contained in this section are not intended as a limitation on coverage, limits or 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 Contractor maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.
(i) Notice of Cancellation. Contractor 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.
(j) Additional Insured Status. General liability policies shall provide or be endorsed to provide that City and its officers, officials, employees, and agents, and volunteers shall be additional insureds under such policies. This provision shall also apply to any excess/umbrella liability policies.
(k) 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. (l) Separation of Insureds. A severability of interests provision must apply for all additional insureds ensuring that Contractor’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. (m) Pass Through Clause. Contractor agrees to ensure that its subconsultants, subcontractors, and any other party involved with the Project who is brought onto or involved in the Project by Contractor, provide the same minimum insurance coverage and endorsements required of Contractor. Contractor 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. Contractor agrees that upon request, all agreements with consultants, subcontractors, and others engaged in the Project will be submitted to City for review. (n) City’s Right to Revise Specifications. The City reserves the right at any time during the term of this Contract to change the amounts and types of insurance required by giving the Contractor ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Contractor, the City and Contractor may renegotiate Contractor’s compensation.
(o) 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. Self-insurance will not be considered to comply with these specifications unless approved by City.
PW Agreement – Pineda General Construction, Inc. (Public Works Building Renovation Project) May 26, 2026 (p) Timely Notice of Claims. Contractor shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Contractor’s performance under this Agreement, and that involve or may involve coverage under any of the required liability policies.
(q) Additional Insurance. Contractor 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.
5.3 Indemnification.
To the full extent permitted by law, Contractor agrees to indemnify, defend and hold harmless the City, its officers, employees and agents (“Indemnified Parties”) against, and will hold and save them and each of them harmless from, any and all actions, either judicial, administrative, arbitration or regulatory claims, damages to persons or property, injuries or death of any person (including workers and the public), losses, costs, penalties, obligations, errors, omissions or liabilities whether actual or threatened (herein “claims or liabilities”) that may be asserted or claimed by any person, firm or entity arising out of or in connection with the negligent performance of the work provided herein of Contractor, its officers, employees, agents, subcontractors, or invitees, or any individual or entity for which Contractor is legally liable (“indemnitors”), or arising from Contractor’s or indemnitors’ reckless or willful misconduct, or arising from Contractor’s or indemnitors’ negligent performance of or failure to perform any term, provision, covenant or condition of this Agreement, and in connection therewith:
(a) Contractor will defend any action or actions filed in connection with any of said claims or liabilities (with legal counsel approved by City) and will pay all costs and expenses, including legal costs and attorneys’ fees incurred in connection therewith; (b) Contractor will promptly pay any judgment rendered against the City, its officers, agents or employees for any such claims or liabilities; and Contractor agrees to save and hold the City, its officers, agents, and employees harmless therefrom; (c) In the event the City, its officers, agents or employees is made a party to any action or proceeding filed or prosecuted against Contractor for such damages or other claims arising out of or in connection with the negligent performance of or failure to perform the work, operation or activities of Contractor hereunder, Contractor agrees to pay to the City, its officers, agents or employees, any and all costs and expenses incurred by the City, its officers, agents or employees in such action or proceeding, including but not limited to, legal costs and attorneys’ fees.
In addition, Contractor agrees to indemnify, defend and hold harmless the Indemnified Parties from, any and all claims and liabilities for any infringement of patent rights, copyrights or trademark on any person or persons in consequence of the use by the Indemnified Parties of articles to be supplied by Contractor under this Agreement, and of which the Contractor is not the patentee or assignee or has not the lawful right to sell the same.
Contractor shall incorporate similar indemnity agreements with its subcontractors and if it fails to do so Contractor shall be fully responsible to indemnify City hereunder therefore, and failure of City to monitor compliance with these provisions shall not be a waiver hereof. This indemnification includes claims or liabilities arising from any negligent or wrongful act, error or
PW Agreement – Pineda General Construction, Inc. (Public Works Building Renovation Project) May 26, 2026 omission, or reckless or willful misconduct of Contractor in the performance of professional services and work hereunder. The provisions of this Section do not apply to claims or liabilities occurring as a result of City’s sole negligence or willful acts or omissions, but, to the fullest extent permitted by law, shall apply to claims and liabilities resulting in part from City’s negligence, except that design professionals’ indemnity hereunder shall be limited to claims and liabilities arising out of the negligence, recklessness or willful misconduct of the design professional. The indemnity obligation shall be binding on successors and assigns of Contractor and shall survive termination of this Agreement.
Contractor’s obligations under this Section shall apply regardless of whether or not such claims or liabilities were caused in part or contributed to by the City or any Indemnified Parties. In instances where City or its Indemnified Parties 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 Contractor will be for that entire portion or percentage of liability not attributable to the active negligence of the City.
5.4 Notification of Third-Party Claims.
City shall timely notify Contractor of the receipt of any third-party claim relating to the work under this Agreement. City shall be entitled to recover from Contractor its reasonable costs incurred in providing such notification.
5.5 Performance and Labor Bonds.
Concurrently with execution of this Agreement, Contractor shall deliver to the City, the following:
(a) A performance bond in the amount of the Contract Sum of this Agreement, in the form provided by the City Clerk, which secures the faithful performance of this Agreement (“Performance Bond”).
(b) A labor and materials bond in the amount of the Contract Sum of this Agreement, in the form provided by the City Clerk, which secures the payment of all persons furnishing labor and/or materials in connection with the work under this Agreement (“Payment Bond”).
Both the Performance Bond and Payment Bond required under this Section 5.5 shall contain the original notarized signature of an authorized officer of the surety and affixed thereto shall be a certified and current copy of his/her power of attorney. The bonds shall be unconditional and remain in force during the entire term of this Agreement. .
5.6 Sufficiency of Insurer or Surety.
Insurance and bonds required by this Agreement shall be satisfactory only if issued by companies qualified to do business in California, rated “A” or better in the most recent edition of Best’s Rating Guide, The Key Rating Guide or in the Federal Register, and only if they are of a financial category Class VII or better, unless such requirements are waived by the Risk Manager of the City (“Risk Manager”) due to unique circumstances. In addition, the insurance carrier must be currently authorized by the Insurance Commissioner to transact business of insurance or be on the List of Approved Surplus Line Insurers issued by the State of California. If this Agreement continues for more than 3 years duration, or in the event the Risk Manager determines that the
PW Agreement – Pineda General Construction, Inc. (Public Works Building Renovation Project) May 26, 2026 work or services to be performed under this Agreement creates an increased or decreased risk of loss to the City, the Contractor agrees that the minimum limits of the insurance policies and the bonds required by Section 5.5 may be changed accordingly upon receipt of written notice from the Risk Manager.
5.7 Substitution of Securities.
Pursuant to Public Contract Code Section 22300, substitution of eligible equivalent securities for any funds withheld to ensure performance under this Agreement may be permitted at the request and sole expense of the Contractor. Alternatively, the Contractor may, pursuant to an escrow agreement in a form prescribed by Public Contract Code Section 22300, request payment of retentions funds earned directly to the escrow agent at the sole expense of the Contractor.
5.8 Release of Securities.
City shall release the Performance and Payment Bonds when the following have occurred:
(a) Contractor has made a written request for release and provided evidence of satisfaction of all other requirements under Article 5 of this Agreement; (b) the work for the Project has been finally accepted by the City; and (c) after passage of the time within which lien claims are required to be made pursuant to applicable laws; if lien claims have been timely filed, City shall hold the Payment Bond until such claims have been resolved, Contractor has provided statutory bond, or otherwise as required by applicable law.
ARTICLE 6. RECORDS, REPORTS, AND RELEASE OF INFORMATION
6.1 Records.
Contractor shall keep, and require subcontractors to keep, such ledgers, books of accounts, invoices, vouchers, canceled checks, reports, studies, certified and accurate copies of payroll records in compliance with all applicable laws, or other documents relating to the disbursements charged to City and services performed hereunder (the “books and records”), as shall be necessary to perform the services required by this Agreement and enable the Contract Officer to evaluate the performance of such services. Any and all such documents shall be maintained in accordance with generally accepted accounting principles and shall be complete and detailed. The Contract Officer shall have full and free access to such books and records at all times during normal business hours of City, including the right to inspect, copy, audit and make records and transcripts from such records. Such records shall be maintained for a period of 3 years following completion of the services hereunder, and the City shall have access to such records in the event any audit is required. In the event of dissolution of Contractor’s business, custody of the books and records may be given to City, and access shall be provided by Contractor’s successor in interest. Notwithstanding the above, the Contractor shall fully cooperate with the City in providing access to the books and records if a public records request is made and disclosure is required by law including but not limited to the California Public Records Act.
PW Agreement – Pineda General Construction, Inc. (Public Works Building Renovation Project) May 26, 2026
6.2 Reports.
Contractor shall periodically prepare and submit to the Contract Officer such reports concerning the performance of the services required by this Agreement as the Contract Officer shall require. Contractor hereby acknowledges that the City is greatly concerned about the cost of work and services to be performed pursuant to this Agreement. For this reason, Contractor agrees that if Contractor becomes aware of any facts, circumstances, techniques, or events that may or will materially increase or decrease the cost of the work or services contemplated herein or, if Contractor is providing design services, the cost of the Project being designed, Contractor shall promptly notify the Contract Officer of said fact, circumstance, technique or event and the estimated increased or decreased cost related thereto and, if Contractor is providing design services, the estimated increased or decreased cost estimate for the Project being designed.
6.3 Ownership of Documents.
All drawings, specifications, maps, designs, photographs, studies, surveys, data, notes, computer files, reports, records, documents and other materials (the “documents and materials”) prepared by Contractor, its employees, subcontractors and agents in the performance of this Agreement shall be the property of City and shall be delivered to City upon request of the Contract Officer or upon the termination of this Agreement, and Contractor shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership use, reuse, or assignment of the documents and materials hereunder. Any use, reuse or assignment of such completed documents for other projects and/or use of uncompleted documents without specific written authorization by the Contractor will be at the City’s sole risk and without liability to Contractor, and Contractor’s guarantee and warranties shall not extend to such use, reuse or assignment. Contractor may retain copies of such documents for its own use.
Contractor shall have an unrestricted right to use the concepts embodied therein. All subcontractors shall provide for assignment to City of any documents or materials prepared by them, and in the event Contractor fails to secure such assignment, Contractor shall indemnify City for all damages resulting therefrom. Moreover, Contractor with respect to any documents and materials that may qualify as “works made for hire” as defined in 17 U.S.C. § 101, such documents and materials are hereby deemed “works made for hire” for the City.
6.4 Confidentiality and Release of Information.
(a) information gained or work product produced by Contractor in performance of this Agreement shall be considered confidential, unless such information is in the public domain or already known to Contractor. Contractor shall not release or disclose any such information or work product to persons or entities other than City without prior written authorization from the Contract Officer.
(b) Contractor, its officers, employees, agents or subcontractors, shall not, without prior written authorization from the Contract Officer or unless requested by the City Attorney, voluntarily provide documents, declarations, letters of support, testimony at depositions, response to interrogatories or other information concerning the work performed under this Agreement. Response to a subpoena or court order shall not be considered "voluntary" provided Contractor gives City notice of such court order or subpoena. (c) If Contractor, or any officer, employee, agent or subcontractor of Contractor, provides any information or work product in violation of this Agreement, then City
PW Agreement – Pineda General Construction, Inc. (Public Works Building Renovation Project) May 26, 2026 shall have the right to reimbursement and indemnity from Contractor for any damages, costs and fees, including attorneys’ fees, caused by or incurred as a result of Contractor’s conduct. (d) Contractor shall promptly notify City should Contractor, its officers, employees, agents or subcontractors be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions or other discovery request, court order or subpoena from any party regarding this Agreement and the work performed there under. City retains the right, but has no obligation, to represent Contractor or be present at any deposition, hearing or similar proceeding. Contractor agrees to cooperate fully with City and to provide City with the opportunity to review any response to discovery requests provided by Contractor. However, this right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response.
ARTICLE 7. ENFORCEMENT OF AGREEMENT AND TERMINATION
7.1 California Law.
This Agreement shall be interpreted, construed and governed both as to validity and to performance of the Parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of San Bernardino, State of California, or any other appropriate court in such county, and Contractor covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. In the event of litigation in a U.S. District Court, venue shall lie exclusively in the Central District of California, in the County of San Bernardino, State of California.
7.2 Disputes.
(a) Default; Cure. In the event that Contractor is in default under the terms of this Agreement, the City shall not have any obligation or duty to continue compensating Contractor for any work performed after the date of default. Instead, the City may give notice to Contractor of the default and the reasons for the default. The notice shall include the timeframe in which Contractor may cure the default. This timeframe is presumptively thirty (30) days, but may be extended, though not reduced, if circumstances warrant, in the sole and absolute discretion of the Project Manager. During the period of time that Contractor is in default, the City shall hold all invoices and shall proceed with payment on such invoices only when the default is cured to the satisfaction of the City. In the alternative, the City may, in its sole discretion, elect to pay some or all of the outstanding invoices during the period of default. If Contractor does not cure the default, the City may take necessary steps to terminate this Agreement under this Article. Any failure on the part of the City to give notice of the Contractor’s default shall not be deemed to result in a waiver of the City’s legal rights or any rights arising out of any provision of this Agreement. (b) Dispute Resolution. This Agreement is subject to the provisions of Article 1.5 (commencing at Section 20104) of Division 2, Part 3 of the California Public Contract Code regarding the resolution of public works claims of less than $375,000. Additionally, Section 9204 of the California Public Contract Code prescribes a process for negotiation and mediation to resolve disputes on construction claims. Article 1.5 mandates certain procedures for the filing of claims and supporting documentation by the Contractor, for the response to such claims by the City, for a mandatory meet and confer conference upon the request of the Contractor, for mandatory non-binding mediation in the event litigation is commenced, and for mandatory judicial
PW Agreement – Pineda General Construction, Inc. (Public Works Building Renovation Project) May 26, 2026 arbitration upon the failure to resolve the dispute through mediation. This Agreement hereby incorporates the provisions of Article 1.5 as though fully set forth herein and the intent of this Section is to implement Sections 20104 et seq. and Section 9204 of the California Public Contract Code with respect to any such claims by Contractor. This Section shall be construed to be consistent with said statutes.
For purposes of these procedures, the term “claim(s)” means a separate demand by the Contractor, after the City has denied Contractor’s timely and duly made request for payment for extra work and/or a time extension, for (A) a time extension, (B) payment of money or damages arising from work done by or on behalf of the Contractor pursuant to this Agreement and payment of which is not otherwise expressly provided for or the Contractor is not otherwise entitled to, or (C) an amount the payment of which is disputed by the City.
7.3 Retention of Funds.
Contractor hereby authorizes City to deduct from any amount payable to Contractor (whether or not arising out of this Agreement) (i) any amounts the payment of which may be in dispute hereunder or which are necessary to compensate City for any losses, costs, liabilities, or damages suffered by City, and (ii) all amounts for which City may be liable to third parties, by reason of Contractor’s acts or omissions in performing or failing to perform Contractor’s obligation under this Agreement. In the event that any claim is made by a third party, the amount or validity of which is disputed by Contractor, or any indebtedness shall exist which shall appear to be the basis for a claim of lien, City may withhold from any payment due, without liability for interest because of such withholding, an amount sufficient to cover such claim. The failure of City to exercise such right to deduct or to withhold shall not, however, affect the obligations of the Contractor to insure, indemnify, and protect City as elsewhere provided herein.
7.4 Waiver.
Waiver by any Party to this Agreement of any term, condition, or covenant of this Agreement shall not constitute a waiver of any other term, condition, or covenant. Waiver by any Party of any breach of the provisions of this Agreement shall not constitute a waiver of any other provision or a waiver of any subsequent breach or violation of any provision of this Agreement.
Acceptance by City of any work or services by Contractor shall not constitute a waiver of any of the provisions of this Agreement. No delay or omission in the exercise of any right or remedy by a non-defaulting Party on any default shall impair such right or remedy or be construed as a waiver.
Any waiver by either Party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement.
7.5 Rights and Remedies are Cumulative.
Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the Parties are cumulative and the exercise by either Party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other Party.
7.6 Legal Action.
In addition to any other rights or remedies, either Party may take legal action, in law or in equity, to cure, correct or remedy any default, to recover damages for any default, to
PW Agreement – Pineda General Construction, Inc. (Public Works Building Renovation Project) May 26, 2026 compel specific performance of this Agreement, to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement. Notwithstanding any contrary provision herein, Contractor shall file a claim pursuant to Government Code Sections 905 et seq. and 910 et seq., in order to pursue a legal action under this Agreement.
7.7 Liquidated Damages.
Since the determination of actual damages for any delay in performance of this Agreement would be extremely difficult or impractical to determine in the event of a breach of this Agreement, the Contractor and its sureties shall be liable for and shall pay to the City the sum of One Thousand Dollars and Zero Cents ($1,000.00) as liquidated damages for each working day of delay in the performance of any of the services required hereunder, as specified in the Schedule of Performance (Exhibit “D”). The City may withhold from any monies payable on account of services performed by the Contractor any accrued liquidated damages. Pursuant to Government Code Section 4215, Contractor shall not be assessed liquidated damages for delay in completion of the Project when such delay was caused by the failure of the public agency or owner of the utility to provide for removal or relocation of utility facilities.
7.8 Termination Prior to Expiration of Term.
This Section shall govern any termination of this Contract except as specifically provided in the following Section for termination for cause. The City reserves the right to terminate this Contract at any time, with or without cause, upon thirty (30) days’ written notice to Contractor, except that where termination is due to the fault of the Contractor, the period of notice may be such shorter time as may be determined by the Contract Officer. Upon receipt of any notice of termination, Contractor shall immediately cease all services hereunder except such as may be specifically approved by the Contract Officer. Except where the Contractor has initiated termination, the Contractor shall be entitled to compensation for all services rendered prior to the effective date of the notice of termination and for any services authorized by the Contract Officer thereafter in accordance with the Schedule of Compensation or such as may be approved by the Contract Officer, except as provided in Section 7.3. In the event the Contractor has initiated termination, the Contractor shall be entitled to compensation only for the reasonable value of the work product actually produced hereunder. In the event of termination without cause pursuant to this Section, the terminating Party need not provide the non-terminating Party with the opportunity to cure pursuant to Section 7.2.
7.9 Termination for Default of Contractor.
If termination is due to the failure of the Contractor to fulfill its obligations under this Agreement, City may, after compliance with the provisions of Section 7.2, take over the work and prosecute the same to completion by contract or otherwise, and the Contractor shall be liable to the extent that the total cost for completion of the services required hereunder exceeds the compensation herein stipulated (provided that the City shall use reasonable efforts to mitigate such damages), and City may withhold any payments to the Contractor for the purpose of set-off or partial payment of the amounts owed the City as previously stated.
7.10 Attorneys’ Fees.
If either Party to this Agreement is required to initiate or defend or made a Party to any action or proceeding in any way connected with this Agreement, the prevailing Party in such
PW Agreement – Pineda General Construction, Inc. (Public Works Building Renovation Project) May 26, 2026 action or proceeding, in addition to any other relief which may be granted, whether legal or equitable, shall be entitled to reasonable attorney’s fees. Attorney’s fees shall include attorney’s fees on any appeal, and in addition a Party entitled to attorney’s fees shall be entitled to all other reasonable costs for investigating such action, taking depositions and discovery and all other necessary costs the court allows which are incurred in such litigation. All such fees shall be deemed to have accrued on commencement of such action and shall be enforceable whether or not such action is prosecuted to judgment.
7.11 Unfair Business Practices Claims.
In entering into this Agreement, Contractor offers and agrees to assign to the City all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. § 15) or under the Cartwright Act (Chapter 2, (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, services or materials related to this Agreement. This assignment shall be made and become effective at the time the City renders final payment to the Contractor without further acknowledgment by the Parties.
ARTICLE 8. CITY OFFICERS AND EMPLOYEES: NON-DISCRIMINATION
8.1 Non-liability of City Officers and Employees.
No officer or employee of the City shall be personally liable to the Contractor, or any successor in interest, in the event of any default or breach by the City or for any amount which may become due to the Contractor or to its successor, or for breach of any obligation of the terms of this Agreement.
8.2 Conflict of Interest.
Contractor covenants that neither it, nor any officer or principal of its firm, has or shall acquire any interest, directly or indirectly, which would conflict in any manner with the interests of City or which would in any way hinder Contractor’s performance of services under this Agreement. Contractor further covenants that in the performance of this Agreement, no person having any such interest shall be employed by it as an officer, employee, agent or subcontractor without the express written consent of the Contract Officer. Contractor agrees to at all times avoid conflicts of interest or the appearance of any conflicts of interest with the interests of City in the performance of this Agreement.
No officer or employee of the City shall have any financial interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to this Agreement which effects his / her financial interest or the financial interest of any corporation, partnership or association in which he/her is, directly or indirectly, interested, in violation of any State statute or regulation. The Contractor warrants that it has not paid or given and will not pay or give any third party any money or other consideration for obtaining this Agreement.
8.3 Covenant Against Discrimination.
Contractor covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, gender, sexual
PW Agreement – Pineda General Construction, Inc. (Public Works Building Renovation Project) May 26, 2026 orientation, marital status, national origin, ancestry, or other protected class in the performance of this Agreement. Contractor shall take affirmative action to insure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, gender, sexual orientation, marital status, national origin, ancestry, or other protected class.
8.4 Unauthorized Aliens.
Contractor hereby promises and agrees to comply with all of the provisions of the Federal Immigration and Nationality Act, 8 U.S.C. § 1101 et seq., as amended, and in connection therewith, shall not employ unauthorized aliens as defined therein. Should Contractor so employ such unauthorized aliens for the performance of work and/or services covered by this Agreement, and should any liability or sanctions be imposed against City for such use of unauthorized aliens, Contractor hereby agrees to and shall reimburse City for the cost of all such liabilities or sanctions imposed, together with any and all costs, including attorneys' fees, incurred by City.
ARTICLE 9. MISCELLANEOUS PROVISIONS
9.1 Notices.
Any notice, demand, request, document, consent, approval, or communication either Party desires or is required to give to the other Party or any other person shall be in writing and either served personally or sent by prepaid, first-class mail, in the case of the City, to the City Manager and to the attention of the Contract Officer (with her/his name and City title), City of Grand Terrace, 22795 Barton Rd., Grand Terrace, California 92313, and in the case of the Contractor, to the person at the address designated on the execution page of this Agreement. Either Party may change its address by notifying the other Party of the change of address in writing.
Notice shall be deemed communicated at the time personally delivered or in seventy-two (72) hours from the time of mailing if mailed as provided in this Section. All correspondence relating to this Agreement shall be serialized consecutively.
9.2 Interpretation.
The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either Party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply.
9.3 Counterparts and Electronic Signatures.
This Agreement may be executed in two or more counterparts, each of which when so executed shall be deemed to be an original and all of which when taken together shall constitute one and the same instrument. The words “execution,” “signed,” “signature,” and words of like import in this Agreement or in any other certificate, agreement or document related to this Agreement, shall include images of manually executed signatures transmitted by facsimile or other electronic format (including, without limitation, “pdf”, “tif” or “jpg”) and other electronic signatures in accordance with California Code of Regulations Title 2 Section 22003 (including, without limitation, DocuSign and AdobeSign). The use of electronic signatures and electronic records (including, without limitation, any contract or other record created, generated, sent, communicated, received, or stored by electronic means) shall be of the same legal effect, validity and enforceability as a manually executed signature or use of a paper-based record-keeping system to the fullest extent permitted by applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the California Uniform Electronic Transactions Act and any
PW Agreement – Pineda General Construction, Inc. (Public Works Building Renovation Project) May 26, 2026 other applicable law, including, without limitation, any state law based on the Uniform Electronic Transactions Act or the Uniform Commercial Code.
9.4 Integration; Amendment.
This Agreement including the attachments hereto (and the documents incorporated herein) is the entire, complete and exclusive expression of the understanding of the Parties. It is understood that there are no oral agreements between the Parties hereto affecting this Agreement and this Agreement supersedes and cancels any and all previous negotiations, arrangements, agreements and understandings, if any, between the Parties, and none shall be used to interpret this Agreement. No amendment to or modification of this Agreement shall be valid unless made in writing and approved by the Contractor and by the City Council. The Parties agree that this requirement for written modifications cannot be waived and that any attempted waiver shall be void. Each and every provision of law and clause required by law to be inserted in this Agreement shall be deemed to be inserted herein, and this Agreement shall be read and enforced as though it were included herein. If through mistake or otherwise any such provision is not inserted, or is not correctly inserted, then upon application of either Party, this Agreement shall forthwith be amended to make such insertion or correction/
9.5 Severability.
In the event that any one or more of the phrases, sentences, clauses, paragraphs, or sections contained in this Agreement shall be declared invalid or unenforceable by a valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining phrases, sentences, clauses, paragraphs, or sections of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the Parties hereunder unless the invalid provision is so material that its invalidity deprives either Party of the basic benefit of their bargain or renders this Agreement meaningless.
9.6 Warranty & Representation of Non-Collusion.
No official, officer, or employee of City has any financial interest, direct or indirect, in this Agreement, nor shall any official, officer, or employee of City participate in any decision relating to this Agreement which may affect his/her financial interest or the financial interest of any corporation, partnership, or association in which (s)he is directly or indirectly interested, or in violation of any corporation, partnership, or association in which (s)he is directly or indirectly interested, or in violation of any State or municipal statute or regulation. The determination of “financial interest” shall be consistent with State law and shall not include interests found to be “remote” or “noninterests” pursuant to Government Code Sections 1091 or 1091.5. Contractor warrants and represents that it has not paid or given, and will not pay or give, to any third party including, but not limited to, any City official, officer, or employee, any money, consideration, or other thing of value as a result or consequence of obtaining or being awarded any agreement.
Contractor further warrants and represents that (s)he/it has not engaged in any act(s), omission(s), or other conduct or collusion that would result in the payment of any money, consideration, or other thing of value to any third party including, but not limited to, any City official, officer, or employee, as a result of consequence of obtaining or being awarded any agreement. Contractor is aware of and understands that any such act(s), omission(s) or other conduct resulting in such payment of money, consideration, or other thing of value will render this Agreement void and of no force or effect.
PW Agreement – Pineda General Construction, Inc. (Public Works Building Renovation Project) May 26, 2026 Contractor’s Authorized Initials ___________________
Arturo J. Pineda
Owner
9.7 Corporate Authority.
The persons executing this Agreement on behalf of the Parties hereto warrant that (i) such Party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said Party, (iii) by so executing this Agreement, such Party is formally bound to the provisions of this Agreement, and (iv) the entering into this Agreement does not violate any provision of any other agreement to which said Party is bound. This Agreement shall be binding upon the heirs, executors, administrators, successors and assigns of the Parties. [SIGNATURES APPEAR ON THE FOLLOWING PAGE]
IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the date and year first-above written.
CITY:
CITY OF GRAND TERRACE, a municipal corporation
By:
___________________________________
Konrad Bolowich
City Manager
APPROVED AS TO FORM:
ALESHIRE & WYNDER, LLP
By:
___________________________________
Adrian R. Guerra
City Attorney
ATTEST:
By:
___________________________________
Daysi Alcocer
City Clerk
CONTRACTOR:
PW Agreement – Pineda General Construction, Inc. (Public Works Building Renovation Project) May 26, 2026 PINEDA GENERAL CONSTRUCTION, INC., a
California corporation
By:
___________________________________
Name: Arturo J. Pineda
Title: Owner
Email: [email protected]
By:
___________________________________
Name: (Insert Name)
Title: (Insert Title)
Email: Email Address
Address: 22063 Rosary Avenue
Nuevo, CA 92567______
Two corporate officer signatures required when Contractor is a corporation, with one signature required from each of the following groups: 1) Chairman of the Board, President or any Vice President; and 2) Secretary, any Assistant Secretary, Chief Financial Officer or any Assistant Treasurer. CONTRACTOR’S SIGNATURES SHALL BE DULY NOTARIZED UNLESS EXECUTED UTILIZING DIGITAL SIGNATURE IN ACCORDANCE WITH CALIFORNIA CODE OF REGULATIONS TITLE 2 SECTION 22003. IN
ADDITION, THE APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS MAY BE REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO CONTRACTOR’S BUSINESS ENTITY.
01247.0001 2146701.1 5/18/2026 A-1
EXHIBIT “A”
SCOPE OF WORK
I. Contractor shall perform the following services to the interior of the Public Works building:
(a) Convert rear window to 3’ commercial steel door (including stucco repairs as needed);
(b) Close off closet opening in bedroom;
(c) Install new water/drain line for fridge/ice maker;
(d) Repair drywall as needed throughout;
(e) Texture all ceilings and walls;
(f) Paint all walls, ceiling, and existing doors;
(g) Install new shower, toilet and pedestal sink at bathroom (h) Replace eight (8) existing electrical outlets;
(i) Replace ceiling light fixtures with LED lights; and (j) Install new laminate plank flooring and baseboards throughout the building, excluding garage (877 square feet total).
II. Brief description of the work to be performed:
Contractor shall renovate the interior of the Public Works building, located at 22795 Barton Rd B, Grand Terrace, CA 92313.
III. In addition to the requirements of Section 6.2, during performance of the work, Contractor will keep the City apprised of the status of performance by delivering status reports, as may be required by the City from time to time.
IV. All work is subject to review and acceptance by the City, and must be revised by the Contractor without additional charge to the City until found satisfactory and accepted by City.
V. Contractor shall provide safe and continuous passage for pedestrian and vehicular traffic in accordance with the Work Area Traffic Control Handbook (WATCH), latest edition; and shall observe and perform all traffic control safe protocols while working in the public right of way and upon any City facilities.
01247.0001 2146701.1 5/18/2026 B-1
EXHIBIT “B”
CONTRACT MODIFICATIONS
(Superseding Contract Boilerplate)
None.
01247.0001 2146701.1 5/18/2026 C-1
EXHIBIT “C”
SCHEDULE OF COMPENSATION
I. Contractor shall perform all work at the rates set forth in the Project Documents submitted as part of Contractor’s Proposal, and listed below:
01247.0001 2146701.1 5/18/2026 C-2
01247.0001 2146701.1 5/18/2026 C-3
II. A retention of five percent (5%) shall be held from each payment as a contract retention to be paid as part of the final payment upon satisfactory completion of services.
III. Within the budgeted amounts for each item in the Project Documents, and with the approval of the Contract Officer, funds may be shifted from one item’s subbudget to another so long as the Contract Sum is not exceeded per Section 2.1.
IV. The City will compensate Contractor for the services performed upon submission of a valid invoice. Each invoice is to include:
A. Line items for all personnel describing the work performed, the number of hours worked, and the hourly rate.
B. Line items for all materials and equipment properly charged to the services.
01247.0001 2146701.1 5/18/2026 C-4
C. Line items for all other approved reimbursable expenses claimed, with supporting documentation.
D. Line items for all approved subcontractor labor, supplies, equipment, materials, and travel properly charged to the services.
V. The total compensation for the services shall not exceed the Contract Sum, as provided in Section 2.1 of this Agreement.
01247.0001 2146701.1 5/18/2026 D-1
EXHIBIT “D”
SCHEDULE OF PERFORMANCE
I. Contractor shall perform all work timely in accordance with plans and specifications as provided in Exhibit “A”.
II. Contractor shall perform all work timely and in accordance with a Project Schedule to be provided by the Contractor and Contract Officer and subject to written approval by the Contract Officer. All contracted work must be completed no later than May 26, 2027.
III. The Contract Officer may approve extensions for performance of the services in accordance with Section 3.2.
01247.0001 2146701.1 5/18/2026 D-1
PERFORMANCE BOND
WHEREAS, the CITY OF GRAND TERRACE, (“City”), has awarded to PINEDA GENERAL CONSTRUCTION, INC., as Contractor (“Principal”), a Contract for the work entitled and described as follows: Public Works Building Renovation Project; WHEREAS, the Contractor is required under the terms of said Contract to furnish a bond for the faithful performance of the Contract;
NOW, THEREFORE, we the undersigned Contractor and Surety, are held and firmly bound unto the City in the sum of Forty-Eight Thousand Dollars and Zero Cents ($48,000.00), this amount being not less than one hundred percent (100%) of the total Contract price, lawful money of the United States of America, for payment of which sum well and truly be made we bind ourselves, our heirs, executors, administrators, and successors, jointly and severally, firmly by these presents. In case suit is brought upon this bond, the Surety will pay a reasonable attorney’s fee to the City in an amount to be fixed by the court.
THE CONDITION OF THIS OBLIGATION IS SUCH THAT, if the hereby bound Contractor, or its heirs, executors, administrators, successors, or assigns, shall in all things stand and abide by, well and truly keep and perform all undertakings, terms, covenants, conditions, and agreements in the said Contract and any alteration thereof, made as therein provided, all within the time and in the manner designated and in all respects according to their true intent and meaning, then this obligation shall become null and void; otherwise it shall be and remain in full force and effect.
FURTHER, the said Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration, or modification of the Contract Documents or of the work to be performed thereunder shall in any way affect its obligations on this bond, and it does hereby waive notice of such change, extension of time, alteration, or modification of the Contract Documents or of the work to be performed thereunder.
Executed on , 2026.
PRINCIPAL
(Seal if Corporation) By
Title
(Attach Acknowledgment of Authorized Representative of Principal)
01247.0001 2146701.1 5/18/2026 D-2
Any claims under this bond may be addressed to:
(name and address of Surety)
(name and address of Surety's agent for service
of
process in California, if different from above)
(telephone number of Surety's agent in
California)
(Attach Acknowledgment)
SURETY
By
(Attorney-in-Fact)
APPROVED:
(Attorney for CITY)
NOTICE:
No substitution or revision to this bond form will be accepted. Sureties must be authorized to do business in and have an agent for service of process in California. Certified copy of Power of Attorney must be attached.
01247.0001 2146701.1 5/18/2026
PAYMENT BOND
(Labor and Material Bond)
WHEREAS, the CITY OF GRAND TERRACE, (“City”), has awarded to PINEDA GENERAL CONSTRUCTION, INC., as Contractor (“Principal”), a Contract for the work entitled and described as follows: Public Works Building Renovation Project; WHEREAS, said Contractor is required to furnish a bond in conjunction with said Contract, to secure the payment of claims of laborers, mechanics, material men, and other persons as provided by law;
NOW, THEREFORE, we the undersigned Contractor and Surety, are held and firmly bound unto the City in the sum of Forty-Eight Thousand Dollars and Zero Cents ($48,000.00), this amount being not less than one hundred percent (100%) of the total Contract price, lawful money of the United States of America, for payment of which sum well and truly be made we bind ourselves, our heirs, executors, administrators, and successors, jointly and severally, firmly by these presents. In case suit is brought upon this bond, the Surety will pay a reasonable attorney’s fee to the City in an amount to be fixed by the court.
THE CONDITION OF THIS OBLIGATION IS SUCH THAT, if said Contractor, its heirs, executors, administrators, successors, assigns, or subcontractor fails to pay: (1) for any work, materials, services, provisions, provender, or other supplies, or for the use of implements of machinery, used in, upon, for, or about the performance of the work to be done, or for any work or labor thereon of any kind; (2) for work performed by any of the persons named in Civil Code Section 9100; (3) for any amounts due under the Unemployment Insurance Code with respect to work or labor performed under the contract; and/or (4) for any amounts required to be deducted, withheld, and paid over to the Employment Development Department from the wages of employees of the Contractor and/or its subcontractors pursuant to Section 13020 of the Unemployment Insurance Code with respect to such work and labor, then the Surety herein will pay for the same in an amount not exceeding the sum specified in this bond, otherwise the above obligation shall be void.
This bond shall inure to the benefit of any of the persons named in Civil Code Section 9100 so as to give a right of action to such persons or their assigns in any suit brought upon the bond. Moreover, if the City or any entity or person entitled to file stop payment notices is required to engage the services of an attorney in connection with the enforcement of this bond, each shall be liable for the reasonable attorney's fees incurred, with or without suit, in addition to the above sum.
Said Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration, or modification of the Contract Documents or of the work to be performed thereunder shall in any way affect its obligations on this bond, and it does hereby waive notice of such change, extension of time, alteration, or modification of the Contract Documents or of the work to be performed thereunder.
01247.0001 2146701.1 5/18/2026
Executed on , 2026.
PRINCIPAL
(Seal if Corporation) By
Title
(Attach Acknowledgment of Authorized Representative of Principal) Any claims under this bond may be addressed to:
(name and address of Surety)
(name and address of Surety's agent for service
of process in California, if different from above)
(telephone number of Surety's agent in
California)
(Attach Acknowledgment)
SURETY
By
(Attorney-in-Fact)
APPROVED:
(Attorney for CITY)
NOTICE:
No substitution or revision to this bond form will be accepted. Sureties must be authorized to do business in and have an agent for service of process in California. Certified copy of Power of Attorney must be attached.
01247.0001 2146701.1 5/18/2026
WORKERS COMPENSATION INSURANCE CERTIFICATE
Description of Contract: City of Grand Terrace
Project: Public Works Building Renovation Project
Type of Insurance: Workers' Compensation and
Employers' Liability Insurance
THIS IS TO CERTIFY that the following policy has been issued by the below-stated company in conformance with the requirements of Article 5 of the Contract and is in force at this time, and is in a form approved by the Insurance Commissioner.
The Company will give at least 30 days' written notice to the City and Engineer/Architect prior to any cancellation of said policy.
POLICY NUMBER EXPIRATION DATE LIMITS OF LIABILITY
Workers' Compensation:
Statutory Limits Under the Laws
of the State of California
Employers' Liability:
$_________________ Each Accident
$_________________ Disease - Policy Limit
$_________________ Disease - Each Employee
Named Insured (Contractor) Insurance Company
Street Number Street Number
City and State City and State
By
(Company Representative)
(SEE NOTICE ON NEXT PAGE)
01247.0001 2146701.1 5/18/2026
Insurance Company Agent for Service
of Process in California:
Name
Agency
Street Number
City and State
Telephone Number
This certificate is issued as a matter of information only and confers no rights upon the certificate holder. This certificate does not amend, extend, or alter the coverage afforded by the policy listed herein.
This is to certify that the policy has been issued to the named insured for the policy period indicated, notwithstanding any requirement, term, or condition of any contract or other document with respect to which this certificate may be issued or may pertain, the insurance afforded by the policy described herein is subject to all the terms, exclusions, and conditions of such policy.
NOTICE:
No substitution or revision to the above certificate form will be accepted. If the insurance called for is provided by more than one insurance company, a separate certificate in the exact above form shall be provided for each insurance company.
01247.0001 2146701.1 5/18/2026
ADDITIONAL INSURED ENDORSEMENT
COMPREHENSIVE GENERAL LIABILITY
Name and address of named insured (“Named Insured”)
Name and address of Insurance Company (“Company”)
General description of agreement(s), permit(s), license(s), and/or activity(ies) insured Notwithstanding any inconsistent statement in the policy to which this endorsement is attached (the “Policy”) or in any endorsement now or hereafter attached thereto, it is agreed as follows:
1. The
(“Public Agency”), its elected officials, officers, attorneys, agents, employees, and volunteers are additional insureds (the above named additional insureds are hereafter referred to as the “Additional Insureds”) under the Policy in relation to those activities described generally above with regard to operations performed by or on behalf of the Named Insured. The Additional Insureds have no liability for the payment of any premiums or assessments under the Policy.
2. The insurance coverages afforded the Additional Insureds under the Policy shall be primary insurance, and no other insurance maintained by the Additional Insureds shall be called upon to contribute with the insurance coverages provided by the Policy.
3. Each insurance coverage under the Policy shall apply separately to each Additional Insured against whom claim is made or suit is brought except with respect to the limits of the Company's liability.
4. Nothing in this contract of insurance shall be construed to preclude coverage of a claim by one insured under the policy against another insured under the policy. All such claims shall be covered as third-party claims, i.e., in the same manner as if separate policies had been issued to each insured. Nothing contained in this provision shall operate to increase or replicate the Company's limits of liability as provided under the policy.
5. The insurance afforded by the Policy for contractual liability insurance (subject to the terms, conditions and exclusions applicable to such insurance) includes liability assumed by the Named Insured under the indemnification and/or hold harmless provision(s) contained in or executed in conjunction with the written agreement(s) or permit(s) designated above, between the Named Insured and the Additional Insureds.
6. The policy to which this endorsement is attached shall not be subject to cancellation, change in coverage, reduction of limits (except as the result of the payment of claims), or non-renewal except after written notice to Public Agency, by certified mail, return receipt requested, not less than thirty (30) days prior to the effective date thereof. In the event of Company's failure to comply with this notice provision, the policy as initially drafted will continue in full force and effect until compliance with this notice requirement.
7. Company hereby waives all rights of subrogation and contribution against the Additional Insureds, while acting within the scope of their duties, from all claims, losses and liabilities arising out of or incident to the perils insured against in relation to those activities described generally above with regard
01247.0001 2146701.1 5/18/2026
to operations performed by or on behalf of the Named Insured regardless of any prior, concurrent, or subsequent active or passive negligence by the Additional Insureds.
8. It is hereby agreed that the laws of the State of California shall apply to and govern the validity, construction, interpretation, and enforcement of this contract of insurance.
9. This endorsement and all notices given hereunder shall be sent to Public Agency at:
City Manager, City of Grand Terrace, 22795 Barton Rd., Grand Terrace, California 92313.
10. Except as stated above and not in conflict with this endorsement, nothing contained herein shall be held to waive, alter or extend any of the limits, agreements, or exclusions of the policy to which this endorsement is attached.
TYPE OF COVERAGES TO WHICH POLICY PERIOD LIMITS OF
THIS ENDORSEMENT ATTACHES FROM/TO LIABILITY
11. Scheduled items or locations are to be identified on an attached sheet. The following inclusions relate to the above coverages. Includes:
□ Contractual Liability □ Explosion Hazard
□ Owners/Landlords/Tenants □ Collapse Hazard
□ Manufacturers/Contractors □ Underground Property Damage □ Products/Completed Operations □ Pollution Liability
□ Broad Form Property Damage □ Liquor Liability
□ Extended Bodily Injury □
□ Broad Form Comprehensive □
General Liability Endorsement □
12. A □ deductible or □ self-insured retention (check one) of $ applies to all coverage(s) except:
(if none, so state). The deductible is applicable □ per claim or □ per occurrence (check one).
13. This is an □ occurrence or □ claims made policy (check one).
14. This endorsement is effective on at 12:01 a.m. and forms a part of Policy Number .
(signatures on following page)
01247.0001 2146701.1 5/18/2026
I, (print name), hereby
declare under penalty of perjury under the laws of the State of California, that I have the authority to bind the Company to this endorsement and that by my execution hereof, I do so bind the Company.
Executed , 20
Signature of Authorized Representative
(Original signature only; no facsimile signature
Telephone No.: ( ) or initialed signature accepted)
01247.0001 2146701.1 5/18/2026
ADDITIONAL INSURED ENDORSEMENT
AUTOMOBILE LIABILITY
Name and address of named insured (“Named Insured”)
Name and address of Insurance Company (“Company”)
General description of agreement(s), permit(s), license(s), and/or activity(ies) insured Notwithstanding any inconsistent statement in the policy to which this endorsement is attached (the “Policy”) or in any endorsement now or hereafter attached thereto, it is agreed as follows:
1. The
(“Public Agency”), its elected officials, officers, attorneys, agents, employees, and volunteers are additional insureds (the above named additional insureds are hereafter referred to as the “Additional Insureds”) under the Policy in relation to those activities described generally above with regard to operations performed by or on behalf of the Named Insured. The Additional Insureds have no liability for the payment of any premiums or assessments under the Policy.
2. The insurance coverages afforded the Additional Insureds under the Policy shall be primary insurance, and no other insurance maintained by the Additional Insureds shall be called upon to contribute with the insurance coverages provided by the Policy.
3. Each insurance coverage under the Policy shall apply separately to each Additional Insured against whom claim is made or suit is brought except with respect to the limits of the Company's liability.
4. Nothing in this contract of insurance shall be construed to preclude coverage of a claim by one insured under the policy against another insured under the policy. All such claims shall be covered as third-party claims, i.e., in the same manner as if separate policies had been issued to each insured. Nothing contained in this provision shall operate to increase or replicate the Company's limits of liability as provided under the policy.
5. The insurance afforded by the Policy for contractual liability insurance (subject to the terms, conditions and exclusions applicable to such insurance) includes liability assumed by the Named Insured under the indemnification and/or hold harmless provision(s) contained or executed in conjunction with the written agreement(s) or permit(s) designated above, between the Named Insured and the Additional Insureds.
6. The policy to which this endorsement is attached shall not be subject to cancellation, change in coverage, reduction of limits (except as the result of the payment of claims), or non-renewal except after written notice to Public Agency, by certified mail, return receipt requested, not less than thirty (30) days prior to the effective date thereto. In the event of Company's failure to comply with this notice provision, the policy as initially drafted will continue in full force and effect until compliance with this notice requirement.
7. Company hereby waives all rights of subrogation and contribution against the Additional Insureds, while acting within the scope of their duties, from all claims, losses and liabilities arising out of or incident to the perils insured against in relation to those activities described generally above with regard
01247.0001 2146701.1 5/18/2026
to operations performed by or on behalf of the Named Insured regardless of any prior, concurrent, or subsequent active or passive negligence by the Additional Insureds.
8. It is hereby agreed that the laws of the State of California shall apply to and govern the validity, construction, interpretation, and enforcement of this contract of insurance.
9. This endorsement and all notices given hereunder shall be sent to Public Agency at:
City Manager
City of Grand Terrace
22795 Barton Rd.
Grand Terrace, California 92313
10. Except as stated above and not in conflict with this endorsement, nothing contained herein shall be held to waive, alter or extend any of the limits, agreements, or exclusions of the policy to which this endorsement is attached.
TYPE OF COVERAGES TO WHICH POLICY PERIOD LIMITS OF
THIS ENDORSEMENT ATTACHES FROM/TO LIABILITY
11. Scheduled items or locations are to be identified on an attached sheet. The following inclusions relate to the above coverages. Includes:
□ Any Automobiles □ Truckers Coverage
□ All Owned Automobiles □ Motor Carrier Act
□ Non-owned Automobiles □ Bus Regulatory Reform Act
□ Hired Automobiles □ Public Livery Coverage
□ Scheduled Automobiles □
□ Garage Coverage □
12. A □ deductible or □ self-insured retention (check one) of $ applies to all coverage(s) except: (if none, so state). The deductible is applicable □ per claim or □ per occurrence (check one).
13. This is an □ occurrence or □ claims made policy (check one).
14. This endorsement is effective on at 12:01 a.m. and forms a part of Policy Number .
(signatures on following page)
01247.0001 2146701.1 5/18/2026
I, (print name), hereby
declare under penalty of perjury under the laws of the State of California, that I have the authority to bind the Company to this endorsement and that by my execution hereof, I do so bind the Company.
Executed , 2026.
Signature of Authorized Representative
(Original signature only; no facsimile signature
Telephone No.: ( ) or initialed signature accepted)
01247.0001 2146701.1 5/18/2026
ADDITIONAL INSURED ENDORSEMENT
EXCESS LIABILITY
Name and address of named insured (“Named Insured”)
Name and address of Insurance Company (“Company”)
General description of agreement(s), permit(s), license(s), and/or activity(ies) insured Notwithstanding any inconsistent statement in the policy to which this endorsement is attached (the “Policy”) or in any endorsement now or hereafter attached thereto, it is agreed as follows:
1. The
(“Public Agency”), its elected officials, officers, attorneys, agents, employees, and volunteers are additional insureds (the above named additional insureds are hereafter referred to as the “Additional Insureds”) under the Policy in relation to those activities described generally above with regard to operations performed by or on behalf of the Named Insured. The Additional Insureds have no liability for the payment of any premiums or assessments under the Policy.
2. The insurance coverages afforded the Additional Insureds under the Policy shall be primary insurance, and no other insurance maintained by the Additional Insureds shall be called upon to contribute with the insurance coverages provided by the Policy.
3. Each insurance coverage under the Policy shall apply separately to each Additional Insured against whom claim is made or suit is brought, except with respect to the limits of the Company's liability.
4. Nothing in this contract of insurance shall be construed to preclude coverage of a claim by one insured under the policy against another insured under the policy. All such claims shall be covered as third-party claims, i.e., in the same manner as if separate policies had been issued to each insured. Nothing contained in this provision shall operate to increase or replicate the Company's limits of liability as provided under the policy.
5. The insurance afforded by the Policy for contractual liability insurance (subject to the terms, conditions and exclusions applicable to such insurance) includes liability assumed by the Named Insured under the indemnification and/or hold harmless provision(s) contained in or executed in conjunction with the written agreement(s) or permit(s) designated above, between the Named Insured and the Additional Insureds.
6. The policy to which this endorsement is attached shall not be subject to cancellation, change in coverage, reduction of limits (except as the result of the payment of claims), or non-renewal except after written notice to Public Agency, by certified mail, return receipt requested, not less than thirty (30) days prior to the effective date thereto. In the event of Company's failure to comply with this notice provision, the policy as initially drafted will continue in full force and effect until compliance with this notice requirement.
7. Company hereby waives all rights of subrogation and contribution against the Additional Insureds, while acting within the scope of their duties, from all claims, losses and liabilities arising out of or incident to the perils insured against in relation to those activities described generally above with regard to operations performed by or on behalf of the Named Insured regardless of any prior, concurrent, or subsequent active or passive negligence by the Additional Insureds.
01247.0001 2146701.1 5/18/2026
8. It is hereby agreed that the laws of the State of California shall apply to and govern the validity, construction, interpretation, and enforcement of this contract of insurance.
9. This endorsement and all notices given hereunder shall be sent to Public Agency at:
City Manager
City of Grand Terrace
22795 Barton Rd.
Grand Terrace, California 92313
10. Except as stated above and not in conflict with this endorsement, nothing contained herein shall be held to waive, alter or extend any of the limits, agreements, or exclusions of the policy to which this endorsement is attached.
TYPE OF COVERAGES TO WHICH POLICY PERIOD LIMITS OF
THIS ENDORSEMENT ATTACHES FROM/TO LIABILITY
□ Following Form
□ Umbrella Liability
□
11. Applicable underlying coverages:
INSURANCE COMPANY POLICY NO. AMOUNT
12. The following inclusions, exclusions, extensions or specific provisions relate to the above coverages:
13. A □ deductible or □ self-insured retention (check one) of $ applies to all coverage(s) except:
(if none, so state). The deductible is applicable □ per claim or □ per occurrence (check one).
14. This is an □ occurrence or □ claims made policy (check one).
15. This endorsement is effective on at 12:01 a.m. and forms a part of Policy Number .
01247.0001 2146701.1 5/18/2026
(signatures on following page)
I, (print name), hereby
declare under penalty of perjury under the laws of the State of California, that I have the authority to bind the Company to this endorsement and that by my execution hereof, I do so bind the Company.
Executed , 2026.
Signature of Authorized Representative
(Original signature only; no facsimile signature
Telephone No.: ( ) or initialed signature accepted)
AGENDA REPORT
MEETING DATE: May 26, 2026
TITLE: Senior Transportation Program Agreement with Omnitrans PRESENTED BY: Shanita Tillman, Sr. Management Analyst
RECOMMENDATION: APPROVE THE TWO-YEAR AGREEMENT WITH OMNITRANS FOR THE CITY’S SENIOR TRANSPORTATION PROGRAM IN THE AMOUNT OF
$116,784.41 FOR FISCAL YEAR 2026-27 AND $120,289.28 FOR FISCAL YEAR 2027-28, FOR A TOTAL AGREEMENT AMOUNT OF $237,073.69; AND
AUTHORIZE THE CITY MANAGER TO EXECUTE THE AGREEMENT
SUBJECT TO CITY ATTORNEY APPROVAL AS TO FORM
2030 VISION STATEMENT:
This item supports Goal #4, “Develop and Implement Successful Partnerships,” by leveraging regional transportation funding to maintain and enhance mobility services for Grand Terrace seniors and individuals with disabilities.
BACKGROUND:
On December 16, 2015, the City of Grand Terrace entered into a partnership with Valley Transportation Services (VTrans), the Consolidated Transportation Services Agency (CTSA) for the San Bernardino Valley, to support senior transportation services within the community. On August 1, 2016, all rights and obligations were transferred from VTrans to Omnitrans, which became the region’s designated CTSA.
Since 2018, the City and Omnitrans have maintained consecutive two-year funding agreements utilizing Measure I Regional Mobility Partnership Program (RMP) funds to offset operational costs associated with the City’s Senior Transportation Program. Most recently, on June 25, 2024, the City approved its fifth biennial agreement with Omnitrans to continue transportation services for Grand Terrace seniors.
DISCUSSION:
Omnitrans’ Measure I Regional Mobility Partnership Program provides funding assistance to support transportation services for seniors and individuals with disabilities throughout the San Bernardino Valley region. The proposed agreement will continue supporting operational expenses associated with the City’s Senior Transportation Program, including the senior bus driver salary and benefits, vehicle maintenance, driver training, office supplies, and energy costs associated with operating the City’s electric senior bus. The agreement also includes the required local funding match consistent with RMP program guidelines.
The City’s Senior Transportation Program provides transportation access for senior residents to the Senior Center, grocery stores, medical appointments, recreational activities, and community
excursions. The program continues to improve accessibility and participation for seniors throughout the community, particularly residents within senior housing developments, while also expanding transportation opportunities through specialized trips.
ENVIRONMENTAL IMPACT:
Approval of the agreement will not result in an environmental impact.
FISCAL IMPACT:
The proposed agreement totals $237,073.69, including $116,784.41 for Fiscal Year 2026-27 and $120,289.28 for Fiscal Year 2027-28. The City is responsible for the required 20% operational match under the Omnitrans Regional Mobility Partnership Program guidelines. Funding will be charged to the Senior Bus Program Fund 65 and was included within the proposed Fiscal Year 2026-27 budget.
The program also includes approximately $35,560 in in-kind volunteer support, which is used to offset a portion of the City’s required local match over the two-year term.
1 FUNDING AGREEMENT
BETWEEN
OMNITRANS
AND
CITY OF GRAND TERRACE
This Funding Agreement for Measure I funds (“Agreement”) by and between City of Grand Terrace (“Grand Terrace”), City of Grand Terrace and Omnitrans, a Joint Powers Authority and a Consolidated Transportation Services Agency (“Omnitrans”), is entered into this 1st day of July 2026. City of Grand Terrace and Omnitrans are sometimes individually referred to as “Party” and collectively as “Parties.”
RECITALS
WHEREAS, in its capacity as the Consolidated Transportation Services Agency (“CTSA”) for the San Bernardino Valley, Omnitrans has the ability to provide Measure I funds to other entities for projects that improve mobility for persons with disabilities, senior citizens, and persons of low income; and
WHEREAS, Grand Terrace currently operates its Senior Transportation Program; and WHEREAS, Grand Terrace would like to continue Senior Transportation Program; and WHEREAS, Omnitrans desires to provide Grand Terrace funds to continue Senior Transportation Program, on a reimbursable basis, for the City of Grand Terrace; and WHEREAS, the parties wish to enter into this Agreement to document the terms and conditions of Omnitrans funding of the Senior Transportation Program Project.
NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS:
1. Project Description: Senior Transportation Program: Curb-to-Curb Transportation program for Seniors between their homes and the Grand Terrace Senior Center.we56
2. This Agreement will be for a term of two (2) years and shall expire on June 30, 2028, unless otherwise terminated as provided for in this Agreement or extended by written agreement between the parties.
2 3. Funding Amount: The amount to be paid to the City of Grand Terrace under this Agreement will not exceed $189,660.01 in operating expenses, with annual not to exceed amounts of $93,428.19 in Fiscal Year 2027 and $96,231.82 in Fiscal Year 2028. Unless agreed to in advance by the parties pursuant to a written amendment. In no instance will Omnitrans be liable for any payments or costs for work in excess of these amounts, nor for costs not listed in Project Budget, attached hereto as Exhibit B.
4. Payment:
a. On a monthly basis, Grand Terrace will provide Omnitrans with an invoice for reimbursement pursuant to Subsections 4.b. and 4.c., below. b. Payments for operating expenses to Grand Terrace hereunder will be made in arrears.
Grand Terrace will submit a detailed and properly documented invoice for reimbursement not more often than monthly, which invoice will include: (i) a description of the work performed; and (ii) a detailed accounting of costs incurred. c. Payments for capital expenses, including but not limited to vehicles, may be requested in advance, upon presentation of a valid vendor invoice for such purchases d. Grand Terrace will be notified within ten (10) business days following receipt of its invoice by Omnitrans of any circumstances or data in Grand Terrace’s invoice that would cause withholding of approval and subsequent payment. Grand Terrace’s invoice will include documentation of reimbursable expenses and billed items sufficient for Omnitrans, in it’s opinion, to substantiate billings. Omnitrans reserves the right to withhold payment of disputed amounts.
e. At no time shall payments from Omnitrans be used to supplant any existing funding source for Grand Terrace’s Program. Grand Terrace shall notify Omnitrans of any potential loss of funding for the existing Grand Terrace services within ten (10) business days of learning of the funding loss.
5. Progress Reports: Grand Terrace will provide Omnitrans with monthly Project Milestones updates on the Senior Transportation Program Project, as set forth in Exhibit A. In cooperation with Omnitrans, Grand Terrace shall develop national ridership data reporting mechanisms sufficient for reporting as part of the NTD (National Transit Database) reporting system, and shall provide such data to Omnitrans monthly.
6. Advisory Committee Participation: Grand Terrace shall attend and participate in advisory committee meetings, as mutually agreed upon by Omnitrans and the San Bernardino County Transportation Authority.
3 7. Compliance with Laws: Grand Terrace will comply with all applicable federal, state, and local laws, codes, ordinances, regulations, orders, circulars, and directives, including, without limitation: (i) all regulatory requirements associated with the funding provided to the Grand Terrace for this Project; (ii) all disability laws; and (iii) non-discrimination and equal opportunity laws. Any failure by Grand Terrace to comply with such laws may result in the termination of this Agreement or such other remedy as Omnitrans deems appropriate.
8. Independent Contractor: Grand Terrace, and the agents and employees of Grand Terrace, in the performance of this Agreement, will act as and be independent contractors, and not officers, employees, or agents of Omnitrans. Grand Terrace, its officers, employees, agents, and contractors, if any, will have no power to bind or commit Omnitrans to any decision or course of action, and will not represent to any person or business that they have such power. Grand Terrace has and will retain the right to exercise full control of the supervision of the Grand Terrace Project, and over the employment, direction, compensation, and discharge of all persons assisting in the performance of the work funded by this Agreement. Grand Terrace will be solely responsible for all matters relating to the payment of its employees and contractors, including but not limited to, compliance with all laws, statutes, and regulations governing such matters.
9. Termination:
a. Omnitrans may terminate this Agreement for cause by giving Grand Terrace a notice of default and intention to terminate the Agreement (“Termination Notice”). The notice will be deemed served and effective for all purposes on the date it is deposited in the U.S. mail, certified, return receipt requested, addressed to Grand Terrace at the address indicated in Section 20 below.
b. Upon receipt of a Termination Notice, Grand Terrace shall have 30 days in which to cure the stated violation(s) and to provide to Omnitrans sufficient evidence that the violations have been cured. If Grand Terrace has not cured within 30 days of such notice or has not provided sufficient evidence of such to Omnitrans, the Agreement shall be terminated, effective immediately.
c. Omnitrans may also terminate this Agreement in the event of Measure I or federal grant funding shortfall, upon 15 days written notice. Such notice will be served and effective as set forth in Subsection 9.a., herein.
d. Omnitrans may also terminate this Agreement in the event of a funding shortfall for Grand Terrace’s Senior Transportation Program or the failure to provide notice to Omnitrans of such funding shortfall, as required pursuant to section 4.e. In the event
4 Grand Terrace fails to provide the notice required pursuant to section 4.e., Omnitrans is not required to give Grand Terrace an opportunity to cure such violation. e. If Omnitrans issues a Termination Notice or terminates this Agreement due to a funding shortfall, Omnitrans will reimburse Grand Terrace for work actually performed up to the effective date of the Termination Notice, subject to the limitations in Section 4, and less any compensation to Omnitrans for damages suffered as a result of Grand Terrace’s failure to comply with the terms of this Agreement. If program funding is discontinued by either Omnitrans or Grand Terrace prior to a Measure I funded vehicle reaching the end of its useful life, at Omnitrans’ sole discretion Grand Terrace must either return the vehicle(s) to Omnitrans or reimburse Omnitrans for the fair market value of the vehicle(s).
f. Grand Terrace will have the right to terminate this Agreement in the event Omnitrans is unable to make required payments. In such event, Grand Terrace will provide Omnitrans with seven (7) days’ written notice of termination. The notice will be deemed served and effective on the date it is deposited in the U.S. mail, certified, return receipt requested, addressed to Omnitrans at the address indicated in Section 20.
Omnitrans will make payment to Grand Terrace through the date of termination, subject to the provisions of Section 4 above, and less any compensation to Omnitrans for damages suffered as a result of Grand Terrace’s failure to comply with the terms of this Agreement.
10. Assignment: The parties understand that Omnitrans entered into this Agreement based on the Senior Transportation Program Project proposed by Grand Terrace. Therefore, without the prior express written consent of Omnitrans, this Agreement is not assignable by Grand Terrace either in whole or in part.
11. Binding Agreement: This Agreement will be binding on the parties hereto, their assigns, successors, administrators, executors, and other representatives.
12. Time: Time is of the essence in this Agreement and will follow the Project Milestones timeline set forth in Exhibit A, unless modified pursuant to Section 13.
13. Amendments: No alteration or variation of the terms of this Agreement will be valid unless made in writing and signed by the parties hereto, and no oral understanding or agreement not incorporated herein, will be binding on any of the parties hereto.
14. Contractors and Subcontractors: Grand Terrace will be fully responsible for all work performed by its contractors and subcontractors. Omnitrans reserves the right to review and approve any contract or agreement to be funded in whole or in part using funds provided under
5 this Agreement in excess of $25,000. Grand Terrace shall incorporate the terms of this Agreement, including without limitation the indemnification and insurance provisions, into any subcontractor agreement funded by this Agreement.
15. Indemnification. Grand Terrace shall defend, indemnify and hold Omnitrans, its directors, officials, officers, employees, agents and/or volunteers free and harmless from any and all liability from loss, damage, or injury to property or persons, including wrongful death, in any manner arising out of or incident to any acts, omissions or willful misconduct of Grand Terrace or any of its directors, officials, officers, employees, agents, volunteers, or service providers arising out of or in connection with Grand Terrace’s performance of this Agreement, including, without limitation, the payment of consequential damages and attorneys' fees. Further, Grand Terrace shall defend, at its own expense, including the payment of attorneys' fees, Omnitrans, its officials, officers, employees, agents and/or volunteers in any legal action based upon such acts, omissions or willful misconduct. Grand Terrace shall reimburse Omnitrans, its directors, officials, officers, employees, agents and/or volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided.
16. Insurance. Grand Terrace shall require all contractors or consultants hired to perform work or services on the Project to obtain, and require their sub-consultants and sub-contractors to obtain, insurance of Grand Terrace and in the amounts described below and satisfactory to Omnitrans.
Grand Terrace may satisfy its insurance obligations herein through participation in a program of self-insurance. Such insurance shall be maintained throughout the term of this Agreement, or until completion of the Project, whichever occurs last. Upon request, Grand Terrace will provide written certificates evidencing compliance to Omnitrans. a. Commercial General Liability Insurance. Occurrence version commercial general liability insurance or equivalent form with a combined single limit of not less than $1,000,000.00 per occurrence. If such insurance contains a general aggregate limit, it shall apply separately to the Project or be no less than two times the occurrence limit. Such insurance shall:
b. Business Automobile Liability Insurance. Business automobile liability insurance or equivalent form with a combined single limit of not less than $1,000,000.00 per occurrence. Such insurance shall include coverage for owned, hired and nonowned automobiles. c. Workers’ Compensation Insurance. Workers’ compensation insurance with statutory limits and employers’ liability insurance with limits of not less than $1,000,000.00 each accident.
6 17. Audit: An independent auditor shall audit Grand Terrace’s use of Senior Transportation Program Project funds no less than annually. Grand Terrace agrees to supply Omnitrans with a copy of any audit of Senior Transportation Program Project related activities performed.
18. Retention and Inspection of Records
a. Grand Terrace, including any contractors or subcontractors, will retain all driver training records and vehicle maintenance and safety records. b. Omnitrans or its designee will have the right to review, obtain, copy, and audit all books, records, computer records, accounts, documentation and any other materials pertaining to performance of this Agreement (collectively “Records”), including any Records in the possession of any contractors or subcontractors. Grand Terrace agrees to provide Omnitrans or its designee with any relevant information requested and will permit Omnitrans or its designees access to its premises, upon reasonable notice, during normal business hours, for the purpose of interviewing employees and inspecting and copying such Records for the purpose of determining compliance with any applicable federal and state laws and regulations.
c. Grand Terrace further agrees to maintain all Senior Transportation Program Project Records for a period of four (4) years after final payment under the Agreement or four (4) years from the conclusion or resolution of any and all audits or litigation relevant to this Agreement and any amendments, whichever is later. If so directed by Omnitrans upon expiration of this Agreement, Grand Terrace will cause all Records relevant to the Project to be delivered to Omnitrans as depository.
19. Signs: Grand Terrace will include the Omnitrans logo and/or Measure I signage on Project related marketing materials and on vehicles operated with Omnitrans funding, including:
a. Vehicles purchased or operated with Measure I funds shall display signs clearly visible to riders indicating the vehicle is funded in part through Measure I funding. b. Signage must conform with approved Measure I signage and be approved by Omnitrans.
20. Notices. All notices hereunder shall be in writing and shall be effective upon receipt. All notices and communications, including invoices, between the Parties to this Agreement shall be either personally delivered, sent by first-class mail, return receipt requested, or sent by overnight express delivery service, postage or other charges fully prepaid, as follows:
7 TO OMNITRANS: TO CITY OF GRAND TERRACE:
Omnitrans City of Grand Terrace
1700 West Fifth Street 22795 Barton Rd
San Bernardino, CA 92411 Grand Terrace Ca. 92313
ATTN: Director Strategic Development
21. Waivers: No waiver of any breach of this Agreement will be held to be a waiver of any prior or subsequent breach. The failure of Omnitrans to enforce at any time the provisions of this Agreement or to require at any time performance by Grand Terrace of these provisions, will in no way be construed to be a waiver of such provisions nor to affect the validity of this Agreement or the right of Omnitrans to enforce these provisions.
22. Litigation: Grand Terrace will notify Omnitrans immediately of any claim or action undertaken by it or against it that affects or may affect this Agreement or Omnitrans and will take such action with respect to the claim or action as is consistent with the terms of this Agreement and the interests of Omnitrans.
23. Non-Liability of Omnitrans: Omnitrans shall not be liable to Grand Terrace or any third party for any claim for loss of profits or consequential damages. Further, Omnitrans shall not be liable to Grand Terrace or any third party for any loss, cost, claim or damage, either direct or consequential, allegedly arising from a delay in performance or failure to perform under this Agreement. There are no third-party beneficiaries to this Agreement
24. Costs and Attorneys’ Fees: If either party commences any legal action against the other party arising out of this Agreement or the performance thereof, the prevailing party in such action may recover its reasonable litigation expenses, including court costs, expert witness fees, discovery expenses, and reasonable attorneys’ fees.
25. Governing Law and Choice of Forum: This Agreement will be administered and interpreted under California law as if written by both parties. Any litigation arising from this Agreement will be brought in the Superior Court of San Bernardino County.
26. Integration: This Agreement represents the entire understanding of Omnitrans and Grand Terrace Grand Terrace as to those matters contained herein and supersedes all prior negotiations, representations, or agreements, both written and oral. This Agreement may not be modified or altered except in accordance with Section 13.
8 27. Severability: If any term or provision of this Agreement or the application thereof to any person or circumstance will, to any extent, be invalid or unenforceable, the remainder of this Agreement, or the application of such term or provision to persons or circumstances other than those to which it is invalid or unenforceable, will not be affected thereby, and each term and provision of this Agreement will be valid and will be enforced to the fullest extent permitted by law, unless the exclusion of such term or provision, or the application of such term or provision, would result in such a material change so as to cause completion of the obligations contemplated herein to be unreasonable.
28. Headings: The headings of the various sections of this Agreement are intended solely for convenience of reference and are not intended to explain, modify, or place any interpretation upon any of the provisions of this Agreement.
29. Authority: Each person signing this Agreement on behalf of a party hereby certifies, represents, and warrants that he or she has the authority to bind that party to the terms and conditions of this Agreement.
30. Ownership; Permission: Omnitrans represents and warrants that all materials used in the performance of the Project work, including, without limitation, all computer software materials and all written materials, are either produced or owned by Grand Terrace or that all required permissions and license agreements have been obtained and paid for by Grand Terrace. Grand Terrace will defend, indemnify and hold harmless Omnitrans and its directors, officers, employees, and agents from any claim, loss, damage, cost, liability, or expense to the extent of any violation or falsity of the foregoing representation and warranty.
31. Counterparts: This Agreement may be executed in multiple counterparts, each of which will constitute an original, and all of which taken together will constitute one and the same instrument.
32. Press Releases: Grand Terrace will obtain Omnitrans' prior written approval of any press releases, or other public outreach materials, that include any reference to Omnitrans or depiction of the Omnitrans logo.
IN WITNESS WHEREOF, the PARTIES hereto have executed this Agreement, as of the date first appearing above.
9 By:
_________________________ ___________________________
Erin Rogers Konrad Bolowich
CEO/General Manager City Manager
Omnitrans Grand Terrace
Approved as to form:
_________________________ _____________________________ Omnitrans Legal Counsel Legal Counsel of City of G.Terrace
10 EXHIBIT A
Project Narrative
The City of Grand Terrace operates a Senior Transportation Program designed to provide safe, reliable, and accessible door-to-door transportation for seniors and individuals with disabilities who experience mobility limitations. The program operates Monday through Friday and provides transportation to the Senior Center, medical appointments, pharmacies, grocery stores, and other essential destinations that support health, independence, and quality of life. Transportation services also support participation in Senior Center activities, nutrition programs, and community wellness services. The transportation program is an ongoing and essential City service that continues to experience steady demand. For the upcoming funding cycle, the city will maintain its core services while making modest operational enhancements to ensure service continuity and efficiency. These enhancements include limited expansion to serve individuals with disabilities of any age for essential trips, transportation to food pantries.
EXHIBIT B
Project Budget
AGENDA REPORT
MEETING DATE: May 26, 2026
TITLE: Public Hearing on Staffing Vacancies Pursuant to Assembly Bill 2561 PRESENTED BY: Michelle Fuentes, Sr. Management Analyst
RECOMMENDATION: RECEIVE AND FILE THIS REPORT AS REQUIRED BY ASSEMBLY BILL 2561 (AB 2561), WHICH OUTLINES THE CITY’S STAFFING LEVELS,
HIRING AND RETENTION PRACTICES, AND BARRIERS TO
RECRUITMENT IN COMPLIANCE WITH STATE LAW
2030 VISION STATEMENT:
This staff report supports Goal #5; Engage in proactive communication.
BACKGROUND:
Assembly Bill 2561 (AB 2561), effective January 1, 2025, requires local government agencies with recognized employee organizations representing non-exempt employees to hold a public hearing at least once per fiscal year regarding staffing vacancies and recruitment and retention efforts.
The purpose of the hearing is to provide transparency regarding workforce challenges, hiring practices, and efforts to recruit and retain employees. If a recognized bargaining unit has a vacancy rate of 20% or greater, and the employee organization requests it, additional information must be provided, including applicant data, average recruitment timelines, and opportunities to improve compensation and working conditions.
This public hearing is being conducted in compliance with AB 2561 prior to adoption of the City’s FY 2026–27 budget.
DISCUSSION:
The City of Grand Terrace currently has 11 non-exempt, union-represented positions, with zero vacant positions. This vacancy rate is below the 20% threshold identified in AB 2561. The City also has 12 exempt, non-union positions, all of which are currently filled. No recognized employee organization has requested additional information pursuant to AB 2561.
To support recruitment and retention efforts, the City continues to advertise employment opportunities through the City’s official website and GovernmentJobs.com, a widely used public sector recruitment platform. The average time to complete the hiring process from the date a position is posted to a final hire is approximately two months, depending on the classification and recruitment needs of the position. The City continues to evaluate compensation and organizational needs to remain competitive within the regional labor market while balancing fiscal constraints as a smaller
municipality.
The City has experienced a significant reduction in employee turnover over the past several fiscal years, reflecting improved workforce stability and retention efforts across departments. Employee turnover has decreased from 62% in FY 2021–22 to 9% in FY 2024–25. This improvement has helped maintain operational continuity, preserve institutional knowledge, and reduce the frequency of recruitments.
In addition to recruitment and retention efforts, the City continues to invest in employee development and workplace safety through annual training opportunities. Current and upcoming trainings include Workplace Harassment Prevention, CPR/AED/First Aid and Fire Extinguisher Certification, Traffic Control Technician training, Leadership Fundamentals, and Emergency Preparedness and Fire Extinguisher Safety training. These trainings are intended to support employee growth, workplace safety, and overall organizational effectiveness.
Although the City currently has no vacancies, recruitment and retention challenges remain common among smaller agencies. Limited staffing levels, budget constraints, and reduced opportunities for upward mobility can impact long-term recruitment competitiveness when compared to larger neighboring agencies.
The City remains committed to maintaining staffing stability, improving recruitment practices, and supporting employee retention within its financial and operational capacity.
ENVIRONMENTAL IMPACT:
There is no environmental impact associated with this item.
FISCAL IMPACT:
There is no direct cost to holding this public hearing. Any future financial impacts, such as changes to compensation or staffing levels, would be considered as part of the City’s standard budget development process and subject to Council approval.
AGENDA REPORT
MEETING DATE: May 26, 2026
TITLE: Discussion and Possible Reconsideration of Zoning Code Amendment (ZCA) 26-02, General Plan Amendment (GPA) 26-01, Zone Change (ZC) 26-01, and Environmental Review (E) 26-03 – Establishment of the R3-40 High Density Multiple Family Residential District and Housing Element Rezoning PRESENTED BY: Adrian Guerra, City Attorney, Gabriel Arguelles, Associate Planner RECOMMENDATION: PASS A MOTION TO RECONSIDER APPROVAL OF ZONING CODE AMENDMENT (ZCA) 26-02, GENERAL PLAN AMENDMENT (GPA) 26-01, ZONE CHANGE (ZC) 26-01, AND ENVIRONMENTAL REVIEW (E) 26-03 – ESTABLISHMENT OF THE R3-40 HIGH DENSITY MULTIPLE FAMILY
RESIDENTIAL DISTRICT AND HOUSING ELEMENT REZONING
2030 VISION STATEMENT:
This staff report supports City Council Goal #3, “Promote Economic Development” by encouraging the City to prepare for future development by updating zoning and development codes; and City Council Goal #5, “Engage in Proactive Communication” by encouraging public participation regarding land use and development activities.
BACKGROUND:
City Council did not pass the motion to approve Zoning Code Amendment (ZCA) 26-02, General Plan Amendment (GPA) 26-01, Zone Change (ZC) 26-01, and Environmental Review (E) 26-03 to implement Program 1 of the City’s 2021–2029 Housing Element at its May 12, 2026 public hearing.
The hearing was adjourned for continuation on May 26, 2026. The proposed amendments were intended to establish the R3-40 High Density Multiple Family Residential District and rezone a total of approximately 97 acres throughout the City to allow residential development at a density of 20 to 40 dwelling units per acre.
As a result, the item was continued to the next City Council meeting on May 26, 2026, for discussion and possible reconsideration. This staff report discusses ramifications the City will likely face in failing to adopt a compliant Housing Element, including disqualification from eligibility for state grants; carryover/combined RHNA from the 6th Cycle to 7th Cycle, at least doubling the amount that must be zoned to R3-40; risk of litigation from the state, private parties, and nonprofit organizations; significant financial penalties; loss of permitting authority; court receivership; and inability to deny new projects inconsistent with the General Plan or Zoning, including Builder’s Remedy vulnerability.
By this staff report, City staff recommends that the City Council move to reconsider approval of Zoning Code Amendment (ZCA) 26-02, General Plan Amendment (GPA) 26-01, Zone Change (ZC) 26-01, and Environmental Review (E) 26-03 – Establishment of the R3-40 High Density Multiple Family Residential District and Housing Element Rezoning and, if a motion for reconsideration