Half Moon Bay City Council
August 18, 2026

BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY

AGENDA REPORT
For meeting of: August 18, 2026
TO: Honorable Mayor and City Council
VIA: Matthew Chidester, City Manager
FROM: Dale Leda, Interim Public Works Director / City Engineer TITLE: SEWER AUTHORITY MID-COASTSIDE FISCAL YEAR 2026-27 OPERATIONS AND

MAINTENANCE BUDGET MID-YEAR ADJUSTMENT
______________________________________________________________________________ RECOMMENDATION:

Adopt a resolution approving the Sewer Authority Mid-Coastside FY 2026-27 Operations and Maintenance Budget Mid-Year Adjustment and incorporating costs for the Montara Force Main Replacement Project, including the City of Half Moon Bay’s associated increased assessment, consistent with Option 2 approved by the SAM Board of Directors on August 10, 2026.

FISCAL IMPACT:

On May 19, 2026, the City Council approved SAM's FY 2026-27 General Operations and Maintenance Budget, which included a total City of Half Moon Bay assessment of $6,988,951.

The adopted assessment included approximately $2.60 million for the City's share of SAM's infrastructure program.

At the time of adoption, the Montara Force Main Replacement Project was still under development, and the final construction cost had not yet been established. The City Council was advised that the project cost could increase following receipt of the contractor's Guaranteed Maximum Price (GMP) and that SAM could subsequently request a budget adjustment.

SAM now estimates the total Montara Force Main project cost at $16,486,938, including a $13,228,000 construction contract, $1,306,000 in contingencies, and $1,952,938 in other construction-related costs. SAM proposes funding $12,150,000 of the project during FY 2026- 27, including the $3,650,000 previously included in SAM's budget and an additional $8,500,000 mid-year budget adjustment. The remaining $4,336,938 is anticipated to be included in SAM's FY 2027-28 budget.

Based on Half Moon Bay's current 61.18 percent allocation, the proposed $8.5 million mid-year adjustment increases the City's FY 2026-27 SAM assessment by $5,200,300, from $6,988,951 to 494

$12,189,251. The City's infrastructure assessment would increase from $2,600,150 to $7,800,450.

SAM's proposed billing schedule reflects the original monthly infrastructure assessment of approximately $216,679 for July and August 2026, followed by an increased infrastructure assessment of approximately $736,709 per month from September 2026 through June 2027.

Funding for the City's SAM obligations is provided through sewer enterprise revenues and available sewer fund balances. Staff is currently exploring a combination of funding options including initial use of City reserves and financing via a public infrastructure fund including the California Infrastructure and Economic Development Bank (IBank). Where financing may be utilized, additional lender expenses such as interest and processing fees would be incorporated into the upcoming Prop 218 rate study and factored into future sewer rates. Any City budget adjustments necessary to accommodate the increased FY 2026-27 assessment will be processed through the City's budget process.

STRATEGIC ELEMENT:

This action supports the Infrastructure and Environment, Healthy Communities and Public Safety and Fiscal Sustainability, elements of the Strategic Plan.

ENVIRONMENTAL REVIEW:

SAM completed environmental review for the Montara Force Main Replacement Project in accordance with the California Environmental Quality Act and approved the project on April 27, 2026.

BACKGROUND:

The Sewer Authority Mid-Coastside is a Joint Powers Authority composed of the City of Half Moon Bay, Granada Community Services District, and Montara Water and Sanitary District. SAM operates the regional wastewater treatment system and related infrastructure serving the three member agencies.

The Montara Force Main is a portion of SAM's Intertie Pipeline System and consists of approximately 13,400 feet of force main serving the northern portion of the regional system. The existing force main has experienced multiple sanitary sewer overflows and is required to be replaced pursuant to a Consent Decree with the Ecological Rights Foundation.

On May 19, 2026, the City Council approved SAM's FY 2026-27 General Operations and Maintenance Budget. The approved SAM budget totaled $11,555,125 and included $4,250,000 for infrastructure projects. Half Moon Bay's total assessment was $6,988,951 based on the City's

61.18 percent share of wastewater flows.

The Montara Force Main represented the largest infrastructure project included in that budget.

At the time, however, the project cost was based on preliminary estimates and the contractor's 495

final GMP had not yet been established. The City's May staff report therefore noted that the final project cost could result in an additional SAM budget adjustment.

DISCUSSION:

SAM is delivering the Montara Force Main Replacement Project through a progressive designbuild contract with McGuire & Hester. Following completion of design, permitting coordination, constructability review, and development of the GMP, the contractor submitted two principal construction options.

Option 1 contemplated completion by June 30, 2027, at a GMP of approximately $17.33 million.

This option assumed construction through potentially difficult winter weather conditions and included additional costs associated with dewatering, trench support, mobilization, and weather-related inefficiencies.

Option 2 provides for a June 30, 2028, completion date, subject to obtaining an extension of the applicable Consent Decree deadline, at a GMP of $13.228 million. SAM determined that Option 2 represented the most cost-effective approach and would reduce construction risks associated with completing substantial pipeline work during wet-weather conditions.

The project cost has increased substantially from earlier estimates. According to SAM, the increases are attributable to several factors, including additional permitting agency requirements, revised construction requirements within the Caltrans right-of-way, increased horizontal directional drilling, changes to bypass facilities, escalating labor costs, and significant increases in HDPE pipe and other material costs.

Including project contingencies and construction support services such as inspection, testing, engineering, environmental monitoring, surveying, and public outreach, SAM estimates the total Option 2 project cost at $16,486,938.

On August 10, 2026, the SAM Board authorized the General Manager to proceed with the Option 2 McGuire & Hester contract, not to exceed $13,228,000, contingent upon each member agency communicating to SAM in writing that it has or will fund the project consistent with the Option 2 contract and upon finalization of the contract's legal language.

SAM subsequently prepared a proposed FY 2026-27 mid-year budget adjustment of $8.5 million for the project. Together with the $3.65 million already budgeted for the Montara Force Main, this would provide $12.15 million for the project during FY 2026-27. SAM anticipates budgeting the remaining $4.34 million of estimated project costs in FY 2027-28.

For Half Moon Bay, the FY 2026-27 adjustment represents an additional assessment of $5,200,300, increasing the City's total annual SAM assessment to $12,189,251. The increase 496

relates entirely to SAM's infrastructure budget and the Montara Force Main project; SAM's underlying operating budget is not being increased through this adjustment.

The action before the City Council does not separately approve SAM's construction contract.

Rather, it provides the written funding commitment requested by the SAM Board as a condition of proceeding with the Option 2 contract. Staff recommends approval of the mid-year adjustment so SAM may proceed with construction of this critical regional wastewater infrastructure project.

ATTACHMENTS:

1. Resolution approving the Sewer Authority Mid-Coastside FY2026-27 Operations and Maintenance Budget Mid-Year Adjustment

2. SAM August 10, 2026, Staff Report – Montara Force Main Replacement Project 497
Resolution No. C-2026-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HALF MOON BAY APPROVING THE SEWER AUTHORITY MID-COASTSIDE FISCAL YEAR 2026-27 GENERAL (OPERATIONS AND

MAINTENANCE) BUDGET MID-YEAR ADJUSTMENT
WHEREAS, City of Half Moon Bay representatives have previously approved the General Budget of the Sewer Authority Mid-Coastside (SAM) for Fiscal Year (FY) 2026-27; and WHEREAS, SAM provides regional wastewater treatment, environmental compliance, operations, maintenance, and infrastructure services for the benefit of the member agencies and their ratepayers; and
WHEREAS, the infrastructure portion of the budget includes funding for the Montara Force Main rehabilitation project, and SAM has provided updated project costs incorporated into the annual budget as a mid-year adjustment based on June 30, 2028, project completion date; and WHEREAS, the adjusted SAM Operations and Maintenance Budget for FY 2026-27 totals $20,055,125, which includes increased infrastructure project costs of $8,500,000 from the Montara Force Main project, and;
WHEREAS, the City of Half Moon Bay’s adjusted share of the FY 2026-27 member agency assessment is $12,189,251, which includes the City’s share of this fiscal years costs for the Montara Force Main Project of $5,200,300, based on the City’s flow allocation of 61.18%; and WHEREAS, the costs of SAM operations and infrastructure for FY 2026-27 will be funded from City Sewer Enterprise Funds, including the Sewer Operating Fund and authorized transfers from the Sewer Capital Fund, as appropriate.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Half Moon Bay approves the Sewer Authority Mid-Coastside Fiscal Year 2026-27 General (Operations and Maintenance) Budget Mid-Year Adjustment attached as Exhibit A to this resolution, incorporating costs for the Montara Force Main Replacement Project, including the City of Half Moon Bay’s associated increased assessment, consistent with Option 2 approved by the SAM Board of Directors on August 10, 2026.
.
***************************************************************** 498
I, the undersigned, hereby certify that the foregoing resolution was duly passed and adopted on the 18th day of August 2026, by the City Council of Half Moon Bay by the following vote:

AYES, Councilmembers:

NOES, Councilmembers:

ABSENT, Councilmembers:

ABSTAIN, Councilmembers:

ATTEST: APPROVED:
___________________________ ______________________________ Maggie Rodriguez, City Clerk Debbie Ruddock, Mayor
499

OVERALL OPERATIONS BUDGET SUMMARY
(Includes: Administrative Services, Treatment, Environmental Compliance, and Infrastructure) FY 2024/25
ACTUAL
FY 2025/26

ADOPTED
FY 2025/26

PROJECTED
FY 26/27

PROPOSED

EXPENDITURES
Personnel
1 Wages 1,770,658                        1,786,300           1,799,105              1,906,100                119,800 7% 2 Premium Pay                166,455              144,100              142,859                  172,000 27,900 19% 3 Health Benefits                306,074              354,596              334,360                  400,750 46,154 13% 4 Retirement Cont.                762,068              541,000              544,707                  591,400 50,400 9% 5 Retiree Med/OPEB 36,364                 44,960                 42,713 62,850 17,890 40% 6 Misc. Benefits                103,703              110,856              102,986                  112,050 1,194 1% 7 Subtotal 3,145,322                        2,981,812           2,966,729              3,245,150                263,338 9% Non‐Personnel
8 Legal Services                237,120              235,000              173,818                  200,000                 (35,000) (15%) 9 Engineering Services                254,378              150,243              155,347                  160,800 10,557 7% 10 Professional Services                863,526              909,600           1,065,516                  965,625 56,025 6% 11 Prof. Memberships 88,269                 60,001                 75,269 76,200 16,199 27% 12 Insurance Premiums                236,925              249,982              255,390                  265,000 15,018 6% 13 Misc. Expenses                117,100                 86,566              122,960                  120,800 34,234 40% 14 Utilities                750,671              806,297              816,601                  839,300 33,003 4% 15 Travel & Training 51,386                57,011                 57,396 64,400 7,389 13% 16 Equipment Rental 25,756                 27,875                 22,674 29,300 1,425 5% 17 Bldg & Maint Services                166,137              148,100              132,108                  176,000 27,900 19% 18 Chemicals                403,961              445,863              338,720                  470,000 24,137 5% 19 Permits & Licenses 60,014                 55,997                 59,283 62,100 6,103 11% 20 Supplies 96,304              120,178              124,058                  128,450 8,272 7% 21 Equipment 12,587                 12,741                 15,487                  417,000                404,259 3173% 22 Infrastructure (***)             3,389,937           3,645,000          4,024,505           12,750,000             9,105,000 250% 23 Claims/Penalties (**) ‐                 80,000                 70,000 85,000 5,000 6% 25 Subtotal 6,754,068                        7,090,454           7,509,133            16,809,975             9,719,521 137% 26 TOTAL            9,899,390        10,072,266        10,475,862           20,055,125            9,982,859 99%

REVENUE
By Type:
27 JPA Assessments             9,276,973           9,942,231           9,942,231            19,923,588             9,981,357 100% 28 NDWSCP Fees 61,609                 60,035                 50,639 53,037 (6,998) (12%) 31 Interest Earnings 81,566                 70,000                 83,210 78,500 8,500 12% 32 Misc. Revenue                387,448 ‐                  59,745 ‐  ‐ ‐ 34 REVENUE TOTAL            9,807,596        10,072,266        10,135,825           20,055,125            9,982,859 99% By Agency:
35 Half Moon Bay             5,642,255           5,989,200           5,989,200            12,189,251             6,200,051 104% 36 Granada CSD             1,766,336           1,873,116           1,873,116              3,628,085             1,754,969 94% 37 Montara WSD             1,868,383           2,079,915           2,079,915              4,106,251             2,026,336 97% 38 TOTAL            9,276,974          9,942,231          9,942,231           19,923,588            9,981,357 100% (**) It is unknown at this time the potential penalites the Authority will be responsible for the sanitary sewer overflows which occurered during the 2023 Winter Storms. (***) FY 2024/25 Actual column contains capitalized infrastructure expenditures as noted in the FY 2024/25 audit.

VARIANCE
FY26/27 versus FY25/26
Over/(Under)
DRAFT
8/11/2026

EXHIBIT A

SAM BUDGET

MIDYEAR

ADJUSTMENT
500

ADMINISTRATIVE SERVICES
By Category
FY 2024/25
ACTUAL
FY 2025/26

ADOPTED
FY 2025/26

PROJECTED
FY 26/27

PROPOSED

EXPENDITURES
Personnel
1 Wages 666,317                          629,300            634,063            661,100                31,800 5% 2 Premium Pay               18,903                11,000               13,432               16,000                   5,000 45% 3 Health Benefits              87,403                88,985               71,871               79,500                 (9,485) (11%) 4 Retirement Cont.            340,271                93,000               54,354               57,700               (35,300) (38%) 5 Retiree Med/OPEB              28,400                13,500               17,509               28,100                14,600 108% 6 Misc. Benefits              29,693                28,800               20,948               18,800               (10,000) (35%) 7 Subtotal 1,170,987                      864,585            812,177            861,200                 (3,385) (0%) Non‐Personnel
8 Legal Services            237,120              235,000            173,818            200,000                  (35,000) (15%) 9 Engineering Services               ‐ 20,698                           ‐                          ‐                          ‐                            ‐ 10 Professional Services 220,751                          226,164            283,075            252,025                25,861 11% 11 Prof. Memberships              77,201                46,515               61,210               62,000                15,485 33% 12 Insurance Premiums 236,925                          249,982            255,390            265,000                15,018 6% 13 Misc. Expenses              95,965                64,590               86,090               92,700                28,110 44% 14 Utilities              27,621                34,250               21,653               22,300               (11,950) (35%) 15 Travel & Training                8,586                  5,335                 7,403                6,600                   1,265 24% 16 Equipment Rental                8,294                  7,875                 8,101                 8,300                      425 5% 17 Bldg & Maint Services 33,150                              34,131               46,200               47,000                12,869 38% 18 Chemicals                         ‐                          ‐                         ‐                         ‐                           ‐ ‐ 19 Permits & Licenses                         ‐                          ‐                         ‐                         ‐                           ‐ ‐ 20 Supplies               10,738                12,844               16,936               13,600                      756 6% 21 Equipment                         ‐                  2,637                 5,087                 6,000                   3,363 128% 22 Infrastructure                         ‐                          ‐                         ‐                         ‐                           ‐ ‐ 23 Claims/Penalties                         ‐                10,000               10,000              10,000                           ‐ 0% 25 Subtotal 977,048                          929,322            974,963            985,525                56,203 6% 26 TOTAL       2,148,035          1,793,907        1,787,140        1,846,725                52,818 3% FY 2024/25
ACTUAL
FY 2025/26

ADOPTED
FY 2025/26

PROJECTED
FY 26/27

PROPOSED

REVENUE
By Type:
27 JPA Assessments        1,839,212          1,723,907         1,723,907         1,768,225                44,318 3% 28 Other Revenue                5,537                          ‐                         ‐                         ‐                           ‐ ‐ 31 Interest Earnings              81,566                70,000               83,210               78,500                   8,500 12% 32 Misc. Revenue ‐ Grant 387,448                                      ‐               59,745                         ‐                           ‐ ‐ 34 REVENUE TOTAL       2,313,762          1,793,907        1,866,862        1,846,725                52,818 3% By Agency:
35 Half Moon Bay        1,118,609          1,038,482         1,038,482         1,081,800                43,318 4% 36 Granada CSD            350,186              324,784            324,784            321,994                    (2,790) (1%) 37 Montara WSD            370,417              360,641            360,641            364,431                   3,790 1% 38 TOTAL 1,839,212                 1,723,907        1,723,907        1,768,225                44,318 3%  Budget line item contains $10,000 related to Bonus, Awards, Certification pay related to gift cards for employees.  Budget line items contains $2,500 related to SAM branded clothing as well as $3,200 for food.

VARIANCE
FY26/27 versus FY25/26

VARIANCE
FY26/27 versus FY25/26
Over/(Under)
DRAFT
8/11/2026
501

TREATMENT
By Category
FY 2024/25
ACTUAL
FY 2025/26

ADOPTED
FY 2025/26

PROJECTED
FY 26/27

PROPOSED

EXPENDITURES
Personnel
1 Wages           1,061,123           1,114,500           1,121,792           1,200,000                  85,500 8% 2 Premium Pay              145,533              131,000              127,357              153,000                  22,000 17% 3 Health Benefits              211,797              257,600              255,723              312,800                  55,200 21% 4 Retirement Cont.              396,008              424,000              460,673              501,200                  77,200 18% 5 Retiree Med/OPEB                   7,897                30,785                24,543                34,000                    3,215 10% 6 Misc. Benefits                71,597                78,641                79,357                89,800                  11,159 14% 7 Subtotal 1,893,954                      2,036,526           2,069,445           2,290,800                254,274 12% Non‐Personnel
8 Legal Services                             ‐ ‐                             ‐                             ‐                             ‐                              ‐ 9 Engineering Services              233,680              150,243              155,347              160,800                  10,557 7% 10 Professional Services              555,548              579,127              667,594              601,600                  22,473 4% 11 Prof. Memberships                11,068                13,486                14,059                14,200                        714 5% 12 Insurance Premiums                            ‐                            ‐                            ‐                            ‐                             ‐ ‐ 13 Misc. Expenses                21,069                21,976                36,713                28,100                    6,124 28% 14 Utilities              723,050              772,047              794,948              817,000                  44,953 6% 15 Travel & Training                42,510                51,171                49,743                57,200                    6,029 12% 16 Equipment Rental                17,462                20,000               14,574                21,000                    1,000 5% 17 Bldg & Maint Services 132,987                            113,969                85,908              129,000                  15,031 13% 18 Chemicals              400,476              442,363              334,158              465,000                  22,637 5% 19 Permits & Licenses                60,014                55,997                59,283                62,100                    6,103 11% 20 Supplies                67,189                84,336                84,352                89,850                    5,514 7% 21 Equipment                10,361                10,104                10,400              411,000                400,896 3968% 22 Infrastructure                   1,311                            ‐              860,238                            ‐                             ‐ ‐ 23 Claims/Penalties                            ‐                70,000                60,000                75,000                    5,000 7% 25 Subtotal 2,276,725                      2,384,819           3,227,318           2,931,850                547,031 23% 26 TOTAL          4,170,680          4,421,345          5,296,763          5,222,650              801,305 18% FY 2024/25
ACTUAL
FY 2025/26

ADOPTED
FY 2025/26

PROJECTED
FY 26/27

PROPOSED

REVENUE
By Type:
27 JPA Assessments           4,185,865           4,361,311           4,361,311           5,169,613                808,302 19% 28 NDWSCP Fees                56,072                60,035                50,639                53,037                   (6,998) (12%) 31 Interest Earnings                            ‐                            ‐                            ‐                            ‐                             ‐ ‐ 32 Misc. Revenue                            ‐                            ‐                            ‐                            ‐                             ‐ ‐ 34 REVENUE TOTAL          4,241,937          4,421,346          4,411,950          5,222,650              801,304 18% By Agency:
35 Half Moon Bay           2,545,843           2,627,254           2,627,254           3,162,769                535,515 20% 36 Granada CSD              796,989              821,671              821,671              941,387                119,716 15% 37 Montara WSD              843,033              912,386              912,386           1,065,457                153,071 17% 38 TOTAL          4,185,865          4,361,311          4,361,311          5,169,613              808,302 19%

VARIANCE
FY26/27 versus FY25/26

VARIANCE
FY26/27 versus FY25/26
Over/(Under)
DRAFT
8/11/2026
502

ENVIRONMENTAL COMPLIANCE
By Category
FY 2024/25
ACTUAL
FY 2025/26

ADOPTED
FY 2025/26

PROJECTED
FY 26/27

PROPOSED

EXPENDITURES
Personnel
1 Wages                43,219               42,500               43,250              45,000                2,500 6% 2 Premium Pay                  2,019                 2,100                  2,070                3,000                   900 43% 3 Health Benefits                  6,875                 8,011                  6,766                8,450                   439 5% 4 Retirement Cont.                25,789               24,000               29,680              32,500                8,500 35% 5 Retiree Med/OPEB                        67                     675                     661                   750                      75 11% 6 Misc. Benefits                  2,413                 3,415                  2,680                3,450                      35 1% 7 Subtotal 80,380                               80,701               85,107              93,150              12,449 15% Non‐Personnel
8 Legal Services                            ‐ ‐                           ‐                           ‐                          ‐                          ‐ 9 Engineering Services                           ‐                          ‐                          ‐                         ‐                         ‐ ‐ 10 Professional Services                87,226             104,309             114,847           112,000                7,691 7% 11 Prof. Memberships                           ‐                          ‐                          ‐                         ‐                         ‐ ‐ 12 Insurance Premiums                           ‐                          ‐                          ‐                         ‐                         ‐ ‐ 13 Misc. Expenses                        66                          ‐                     157                         ‐                         ‐ ‐ 14 Utilities                           ‐                          ‐                          ‐                         ‐                         ‐ ‐ 15 Travel & Training                     290                     505                     250                   600                      95 19% 16 Equipment Rental                           ‐                          ‐                          ‐                         ‐                         ‐ ‐ 17 Bldg & Maint Services                           ‐                          ‐                          ‐                         ‐                         ‐ ‐ 18 Chemicals                  3,486                 3,500                  4,562                5,000                1,500 43% 19 Permits & Licenses                           ‐                          ‐                          ‐                         ‐                         ‐ ‐ 20 Supplies                18,376               22,998               22,770              25,000                2,002 9% 21 Equipment                  2,226                          ‐                          ‐                         ‐                         ‐ ‐ 22 Infrastructure                           ‐                          ‐                          ‐                         ‐                         ‐ ‐ 23 Claims/Penalties                           ‐                          ‐                          ‐                         ‐                         ‐ ‐ 25 Subtotal 111,670                          131,312             142,586           142,600              11,288 9% 26 TOTAL            192,050            212,013            227,693          235,750            23,737 11% FY 2024/25
ACTUAL
FY 2025/26

ADOPTED
FY 2025/26

PROJECTED
FY 26/27

PROPOSED

REVENUE
By Type:
27 JPA Assessments             251,896             212,013             212,013           235,750              23,737 11% 28 NDWSCP Fees                           ‐                          ‐                          ‐                         ‐                         ‐ ‐ 31 Interest Earnings                           ‐                          ‐                          ‐                         ‐                         ‐ ‐ 32 Misc. Revenue                           ‐                          ‐                          ‐                         ‐                         ‐ ‐ 34 REVENUE TOTAL            251,896            212,013            212,013          235,750            23,737 11% By Agency:
35 Half Moon Bay             153,203             127,717             127,717           144,232              16,515 13% 36 Granada CSD                47,961               39,943               39,943              42,930                2,987 7% 37 Montara WSD                50,732               44,353               44,353              48,588                4,235 10% 38 TOTAL            251,896            212,013            212,013          235,750            23,737 11%

VARIANCE
FY26/27 versus FY25/26

VARIANCE
FY26/27 versus FY25/26
Over/(Under)
DRAFT
8/11/2026
503

INFRASTRUCTURE
By Category
FY 2024/25
ACTUAL
FY 2025/26

ADOPTED
FY 2025/26

PROJECTED
FY 26/27

PROPOSED

EXPENDITURES
Personnel
1 Wages                          ‐ ‐                             ‐                             ‐                           ‐                             ‐ 2 Premium Pay                          ‐ ‐                             ‐                             ‐                           ‐                             ‐ 3 Health Benefits                          ‐ ‐                             ‐                             ‐                           ‐                             ‐ 4 Retirement Cont.                          ‐ ‐                             ‐                             ‐                           ‐                             ‐ 5 Retiree Med/OPEB                          ‐ ‐                             ‐                             ‐                           ‐                             ‐ 6 Misc. Benefits                          ‐ ‐                             ‐                             ‐                           ‐                             ‐ 7 Subtotal                          ‐ ‐                             ‐                             ‐                           ‐                             ‐ Non‐Personnel                          ‐ ‐                             ‐                             ‐ 8 Legal Services                         ‐                            ‐                            ‐                          ‐                             ‐ ‐ 9 Engineering Services                         ‐                            ‐                            ‐                          ‐                             ‐ ‐ 10 Professional Services                         ‐                            ‐                            ‐                          ‐                             ‐ ‐ 11 Prof. Memberships                         ‐                            ‐                            ‐                          ‐                             ‐ ‐ 12 Insurance Premiums                         ‐                            ‐                            ‐                          ‐                             ‐ ‐ 13 Misc. Expenses                         ‐                            ‐                            ‐                          ‐                             ‐ ‐ 14 Utilities                         ‐                            ‐                            ‐                          ‐                             ‐ ‐ 15 Travel & Training                         ‐                            ‐                            ‐                          ‐                             ‐ ‐ 16 Equipment Rental                         ‐                            ‐                            ‐                          ‐                             ‐ ‐ 17 Bldg & Maint Services                         ‐                            ‐                            ‐                          ‐                             ‐ ‐ 18 Chemicals                         ‐                            ‐                            ‐                          ‐                             ‐ ‐ 19 Permits & Licenses                         ‐                            ‐                            ‐                          ‐                             ‐ ‐ 20 Supplies                         ‐                            ‐                            ‐                          ‐                             ‐ ‐ 21 Equipment                         ‐                            ‐                            ‐                          ‐                             ‐ ‐ 22 Infrastructure (A)         3,388,625          3,645,000          3,164,267        12,750,000           9,105,000 250% 23 Claims/Penalties                         ‐                            ‐                            ‐                          ‐                             ‐ ‐ 25 Subtotal 3,388,625                   3,645,000          3,164,267        12,750,000           9,105,000 250% 26 TOTAL         3,388,625          3,645,000          3,164,267       12,750,000           9,105,000 250% FY 2024/25
ACTUAL
FY 2025/26

ADOPTED
FY 2025/26

PROJECTED
FY 26/27

PROPOSED

REVENUE
By Type:
27 JPA Assessments         3,000,000          3,645,000          3,645,000        12,750,000           9,105,000 250% 28 NDWSCP Fees                         ‐                            ‐                            ‐                          ‐                             ‐ ‐ 31 Interest Earnings                         ‐                            ‐                            ‐                          ‐                             ‐ ‐ 32 Misc. Revenue                         ‐                            ‐                            ‐                          ‐                             ‐ ‐ 34 REVENUE TOTAL         3,000,000          3,645,000          3,645,000       12,750,000           9,105,000 250% By Agency:
35 Half Moon Bay         1,824,600          2,195,748          2,195,748          7,800,450           5,604,702 255% 36 Granada CSD            571,200              686,718              686,718          2,321,775           1,635,057 238% 37 Montara WSD            604,200              762,534              762,534          2,627,775           1,865,241 245% 38 TOTAL 3,000,000                   3,645,000          3,645,000       12,750,000           9,105,000 250% (A) Breakdown is as follows:
$3,650,000 Sewer Force Main in Montara; $450,000 Effluent Pumps; $100,000 Montara Pump Station, Pump #1; $50,000 Portola Pump Station, Pump #1; $8,500,000 Mid‐Year Budget Adjustment for Sewer Force Main in Montara.

VARIANCE
FY26/27 versus FY25/26

VARIANCE
FY26/27 versus FY25/26
Over/(Under)
DRAFT
8/11/2026
504
Construction of the Sewer Force Main in Montara
Total Force Main Construction Costs
Construction       13,228,000
Contingencies 1,306,000
Other Construction Costs 1,952,938
Total project costs for Sewer Force Main in Montara       16,486,938 Estimated Future Costs:

Option 2 ‐ June 2028 project completion        (4,336,938) Completion costs to be requested in FY 2027‐28.

Sewer Force Main in Montara Project Total for FY 2026‐27:       12,150,000 FY 2026‐27 Approved Budget for Sewer Force Main in Montara (3,650,000) Balance for Mid‐Year Budget Adjustment         8,500,000 Total FY 2026‐27 Mid‐Year Budget Adjustment Required         8,500,000 FY 2026‐27 Mid‐Year Budget Adjustment Calculation
DRAFT
8/11/2026
505
HMB
City of Half Moon Bay City of Half Moon Bay
FY 2026‐27 FY 2026‐27
Infrastructure Infrastructure
Annual Assessment Originally Approved Annual Assessment As Originally Approved Monthly Assessment As Amended
$ 2,600,150 $ 216,679 $ 7,800,450
Proposed Billing Arrangement for Remainder of FY 2026‐27 $ 216,679 Original Monthly Assessment as Adopted
2 Months of Assessments Billed (July & August 2026)
433,358 Total Infrastructure Assessments Billed ($216,679 x 2 Months) 7,800,450 Amended Infrastructure Assessment (as Approved) 7,367,092 Difference Between Amended Total and Infrastructure Assessments Billed to Date 10 Months Remaining in FY 2026‐27
$ 736,709 Updated Infrastructure Billing Assessment for Remainder of FY (September 2026 ‐ June 2027) $ (216,679) As originally adopted monthly Infrastructure assessment $ 520,030 Monthly increase of Infrastructure assessment Change Original Monthly
Assessments
Check Calculation
216,679 216,679 July 2026
216,679 216,679 August 2026
520,030 216,679 736,709 September 2026
520,030 216,679 736,709 October 2026
520,030 216,679 736,709 November 2026
520,030 216,679 736,709 December 2026
520,030 216,679 736,709 January 2027
520,030 216,679 736,709 February 2027
520,030 216,679 736,709 March 2027
520,030 216,679 736,709 April 2027
520,030 216,679 736,709 May 2027
520,030 216,679 736,709 June 2027
5,200,300 2,600,150 7,800,450
DRAFT
8/11/2026
506
August 10, 2026
Agenda Item No: 4A

BOARD MEMBERS: P. Nagengast B. Dye N. Marsh
S. Boyd D. Ruddock K. Slater-Carter
ALTERNATE MEMBERS: B. Softky J. Randle
W. Bowles M. Allen

SEWER AUTHORITY MID-COASTSIDE
Staff Report
TO: Honorable Board of Directors
FROM: Kishen Prathivadi, General Manager
SUBJECT: Authorize the General Manager to Enter into a Contract with McGuire & Hester, the Progressive Design Build Contractor, for the Construction of the SAM Force Main in Montara
Executive Summary
The purpose of this report is to review the attached Guaranteed Maximum Price (GMP) for the SAM Force Main in Montara Replacement Project (FMM) and authorize the General Manager to enter into a contract with McGuire and Hester, the Progressive Design Build Contractor.

Fiscal Impact
The fiscal impact is $14,564,000 including the least expensive option for construction of $13,228,000 plus contingencies of $1,336,000. This will require a mid-year budget adjustment which will be adopted by the Board later. A draft proposed mid-year budget is attached.

Strategic Plan Compliance
The recommendation complies with the SAM Strategic Plan Goal 5.3: “Infrastructure, Operations, and Maintenance,”- “Develop a longest term reasonable perspective in concrete spending terms of potential alternative approaches to managing the system with the objective of decreasing long term costs and environmental impacts and increasing safety.”
Background and Discussion/Report
The Force Main in Montara (FMM) sewer replacement project will replace 13,395 feet of Ductile Iron pipe (DIP) with 13,654 feet of High-Density Polyethylene (HDPE) pipe, install air release valves and air vacuum release valves (18), and install four bypass stations. In addition, the project includes installation of 390 lineal feet of 10-inch HDPE pipe and tie34 507
August 10, 2026
Agenda Item No: 4A

BOARD MEMBERS: P. Nagengast B. Dye N. Marsh
S. Boyd D. Ruddock K. Slater-Carter
ALTERNATE MEMBERS: B. Softky J. Randle
W. Bowles M. Allen
in to the Princeton force main system. Most of the pipeline installation will be completed by open cut methods, but to limit impacts to environmentally sensitive sites and Highway 1/local traffic, there will be at least five locations utilizing Horizontal Direction Drilling (HDD) and two road crossings utilizing auger bore methods. The FMM is a portion of the Sewer Authority Mid-Coastside Intertie Pipeline System and due to multiple sewer spills from the FMM, the pipeline is required to be replaced by June 30, 2027, as part of a binding legal Consent Decree with Ecological Rights Foundation (ERF).

On November 25, 2024, the SAM Board of Directors authorized the General Manager to enter into a Phase I Progressive Design Build Contract with McGuire & Hester and BKF Engineers (Formerly MNS). Since that time, SAM Staff, SRT Consultants, McGuire and Hester and BKF have been moving forward with designing a project alignment and completing environmental reports needed to obtain the permits required for this project.

In accordance with the California Environmental Quality Act (CEQA), an initial study was adopted, and the project was approved by the SAM Board on April 27, 2026. A Coastal Permit Exemption was approved and issued by the San Mateo County Planning Department on May 19, 2026, with the support of the California Coastal Commission.

Permitting agency requirements have been received and incorporated into the 100% Project Plans and Specifications. Unfortunately, the additional requirements of these agencies, particularly the California Transportation Commission (Caltrans), have significantly increased the cost of construction. In addition, the Authority experienced a 3- month delay in the project schedule due to the slow review process of the permitting agencies. It is anticipated that all the permits will be issued within a week of this Board meeting.

The Board of Directors of the Authority reviewed the GMP on July 13, 2026, and requested staff meet with member agency engineers and general managers to address questions that the Board had regarding the cost, timing, and design considerations that led to the 60% design and the GMP.

On July 27, 2026, the Design-Build team of McGuire & Hester and BKF Engineers, SRT Engineers, and SAM staff met with representatives of the member agencies to discuss project design and cost questions. Representatives from the City of Half Moon Bay, Granada Sanitary District and Montara Water and Sanitary District attended the meeting.

Discussions included specific design questions, measures that were incorporated into the design to provide the most cost-effective design, cost of delays to the project, and reasons for the exceptions that were listed in the GMP proposal. 35 508
August 10, 2026
Agenda Item No: 4A

BOARD MEMBERS: P. Nagengast B. Dye N. Marsh
S. Boyd D. Ruddock K. Slater-Carter
ALTERNATE MEMBERS: B. Softky J. Randle
W. Bowles M. Allen
Mc Guire and Hester have submitted a revised GMP to SAM that updates the deadlines for the pipe material and jack and bore quotes to be valid through August 31, 2026. In addition, Mc Guire and Hester have revised the list of exclusions to better reflect the reason for each item.

Potential Super El Niño Impacts to Project
It is forecasted that a “Super El Niño” will hit the Central Coast of California this year bringing heavy rains and flooding to the area. Should this occur, adverse weather will make it difficult and costly for McGuire and Hester to complete the project by June 30, 2027. Given this anticipated weather, McGuire & Hester have included additional estimated costs to construct a pipeline during a wet winter including installing significant dewatering wells, constructing stronger trench shoring, the need for multiple mobilization costs and lost workdays during heavy rainfall. Much of the construction will occur adjacent to sensitive habitats that could also be negatively impacted by wet-weather construction activities.

On July 13, 2026, the Board directed the Authority’s attorney to initiate negotiations with the Ecological Rights Foundation (ERF) to extend the construction deadline to June 30, 2028.

Guaranteed Maximum Price (GMP) for Construction
Mc Guire and Hester have provided staff with a Guaranteed Maximum Price (GMP) that includes the additional measures needed for safe construction during a rainy winter (Option 1). Option 2 is the GMP to complete the work with a time extension to June 30, 2028, requiring no additional dewatering of trenches or work during inclement weather.

A summary of the costs for the options, including going to a competitive bid are provided in the following table.

Guaranteed Maximum Price
Option 1 - June 2027
Project Completion
Option 2 - June 2028
Project Completion
Project Contingencies to
Include in Budget
$17,328,100 $13,228,000 $1,336,000
Option 1 GMP is $17,328,100 with the requirement to work through an El Niño winter to complete construction by 6/30/2027.
36 509
August 10, 2026
Agenda Item No: 4A

BOARD MEMBERS: P. Nagengast B. Dye N. Marsh
S. Boyd D. Ruddock K. Slater-Carter
ALTERNATE MEMBERS: B. Softky J. Randle
W. Bowles M. Allen
Option 2 GMP is $13,228,000 with the ability to work with a time extension to complete the project during better weather conditions by 6/30/28. This will require ERF approval of the time extension.

Option 3 is the cost of a decision to have the engineer complete final plans and specifications for bidding purposes. The Off-Ramp cost in the Phase I agreement is $128,454 to finalize the plans and specifications for the purpose of bidding. This option will delay award of the contract until at least February 2027, which will risk increasing the cost of materials and labor by a minimum of $100,000 per month based on current trends.

Evaluation of Construction Cost
SAM Staff and SRT Consultants reviewed Mc Guire and Hester’s detailed price estimate that led to their GMP and compared it with the 2024 Capital Improvement Program (CIP) estimate of $10,161,000. The combined costs of High-Density Polyethylene (HDPE) pipe materials and changes in agency requirements have added about $2.4 million to the construction costs estimated in 2024 CIP for the project. The remaining increase compared to the 2024 total can be attributed to cost escalation of other materials, increased cost of labor and the cost of design details that were not available for the 2024 CIP cost estimate.

The requirements to fill abandoned pipeline assets with low strength concrete rather than abandoning the pipes in place and to use concrete instead of native soil and gravel to backfill the new pipeline trenches within the California State Transportation Agency (Caltrans) right of way has increased the cost of construction. Caltrans and the County of San Mateo have required increased lengths of horizontal directional drilling pipeline to protect road improvements. Lastly, the costs associated with the final design of bypass vaults increased. The combined additional cost for these items is $1,608,059.

The cost of pipeline materials needed for the project, especially High-Density Polyethylene (HDPE) pipe has steadily increased since October 2025, with this trend expected to continue into the fall of 2026. The pipeline cost estimate for the project in 2024 was $500,000. The following table shows the increase in costs based on actual bids received for the project pipe material since October 2025.

Based on staff’s evaluation of the costs included in the GMP, it is our opinion that the GMP Option 2 is a fair and competitive price for the construction of the Force Main in Montara.
37 510
August 10, 2026
Agenda Item No: 4A

BOARD MEMBERS: P. Nagengast B. Dye N. Marsh
S. Boyd D. Ruddock K. Slater-Carter
ALTERNATE MEMBERS: B. Softky J. Randle
W. Bowles M. Allen
Risk Assessment and Contingencies
A Risk Register was developed by Staheli Trenchless to determine the risks associated with the project, the probability of the risk and the monetary impact of the risk. Staheli Trenchless is a subcontractor for the design consultant BKF (formally MNS). SAM Staff, SRT, Staheli Trenchless, McGuire and Hester and BKF were all involved in developing the list of risks, which party owns the risk, and what risks have a high enough impact to be either mitigated or included in the contingencies.

To reduce the risk of encountering granitic rock, a geophysical survey was conducted that determined the risk was low for the Horizontal Directional Drilling (HDD) location of HDD #2. This reduced the cost of purchasing additional drilling equipment and the estimated number of working days required to complete the horizontal directional drilling at that location. The budget for the HDD work was reduced by $1,200,000 for that item.

The risk of utility conflicts was reduced by designing around utilities based on the results of potholing prior to completion of the final plans. Completing potholing resulted in design changes that reduced delays, improved public safety and allowed shallower HDD alignments that will save money and construction time.

Other risks, such as supply chain cost increases and weather-related delays, could not be mitigated and are included in the contingency of $1,306,000. The cost of a risk that is 38 511
August 10, 2026
Agenda Item No: 4A

BOARD MEMBERS: P. Nagengast B. Dye N. Marsh
S. Boyd D. Ruddock K. Slater-Carter
ALTERNATE MEMBERS: B. Softky J. Randle
W. Bowles M. Allen
accounted for in the risk register will be available in the amount that was agreed by all parties to be available if that risk is encountered. Any cost above that amount is the responsibility of the owner of that risk. The attached contract includes a description of the contingencies per the Risk Register, who owns the risk and the monetary value that was assigned to that risk. Any use of contingencies will require prior approval by SAM.

The total project contingency is the sum of all anticipated risks with an additional $500,000 for unanticipated risks. The total of all contingencies is 10% of the construction cost. Typically, a contingency of 15% is added to the project construction bid and the risk value is not negotiated prior to commencement of construction. The following table identifies the contingency amount attributable to the contractor and to SAM based on the Risk Register.

CONTRACTOR RISK CONTINGENCY $480,000
SAM RISK CONTINGENCY $326,000
ADDITIONAL CONTINGENCY FOR SAM RISK $500,000
TOTAL $1,306,000
Exceptions/Clarifications to GMP
At the July 13, 2026, meeting, the Board was concerned about the costs associated with the exceptions/clarifications that were listed in the GMP Proposal by McGuire and Hester. These exceptions are clarifications of what was included and was not included in the GMP Proposal. Several contingency items were discussed further with McGuire and Hester and subsequently removed from the proposal. An updated GMP was provided to SAM on July 31, 2026, to better understand the exceptions and clarifications.

Exceptions provided in the updated proposal are either items that were due to design conflicts or determined to no longer be needed, or items that are included in the Contingencies, if the need arises during construction.
39 512
August 10, 2026
Agenda Item No: 4A

BOARD MEMBERS: P. Nagengast B. Dye N. Marsh
S. Boyd D. Ruddock K. Slater-Carter
ALTERNATE MEMBERS: B. Softky J. Randle
W. Bowles M. Allen
Review of Proposed Contract
SAM provided a preliminary draft agreement to the member agencies after the July 13, 2026 Board meeting for review. A Microsoft Word version of the contract was provided to and comments received from the attorney for the City of Half Moon Bay, Burke, Williams & Sorensen, LLP. These comments have been incorporated into the contract documents.

Anticipated Total Construction Budget
In addition to the construction contract, there is a need for inspection, testing, project engineering and surveying, public outreach, and environmental monitoring services.

Proposals for each of the “Other Construction Costs” have been received by the Authority and if the GMP Contract is approved by the Board, staff will return at the next meeting with the additional contracts to be approved by the Board.

The following table provides a summary of all the anticipated costs associated with the construction of the Force Main in Montara Replacement Project. BAGG Engineering’s bid has replaced the estimate provided in the previous staff report.

Analysis of Options
As previously discussed, Option 1 with a June 30, 2027, completion date is too expensive, risks damaging the environment due to completing construction during a Super El Niño winter and is not likely to be completed by June 30, 2027. Option 3 would put SAM into the situation of being at the mercy of obtaining a low bid, which due to inflation would likely be more expensive than Option 2 and open to multiple change

TOTAL FORCE MAIN CONSTRUCTION COSTS
Option 1-June 2027 Option 2-June 2028
Project Completion Project Completion
Guaranteed Maximum Price $ 17,328,100.00 $ 13,228,000.00 Contingencies $ 1,306,000.00 $ 1,306,000.00
Total Construction Contract $ 18,634,100.00 $ 14,534,000.00 SAM Engineering Support - SRT $ 500,000.00 $ 500,000.00 Public Outreach Communications-KSC $ 75,000.00 $ 75,000.00 Mitigation Monitoring Consultants-BKF $ 426,938.00 $ 426,938.00 Construction Testing Services -BAGG $ 151,000.00 $ 151,000.00 Construction Inspection Services -MCM $ 800,000.00 $ 800,000.00 Other Construction Costs $ 1,952,938.00 $ 1,952,938.00
Grand Total Cost $ 20,587,038.00 $ 16,486,938.00
40 513
August 10, 2026
Agenda Item No: 4A

BOARD MEMBERS: P. Nagengast B. Dye N. Marsh
S. Boyd D. Ruddock K. Slater-Carter
ALTERNATE MEMBERS: B. Softky J. Randle
W. Bowles M. Allen
orders which will need a higher project contingency. Both Option 2 and Option 3 require SAM to request ERF to agree to an extension of the project completion date to June 30, 2028.

Option 2 has the lowest GMP and a risk register that summarizes the cost for change orders that could be encountered. The cost of a risk that is encountered is covered by the amount in the risk register and anything above that amount is the responsibility of the owner of that risk. Approval of Option 2 will allow SAM to purchase the pipe materials now to manage the risk of price inflation for those products and save money.

If the Board approves Option 2 and the Phase II Design Build Contract with McGuire and Hester today, it is anticipated that a Notice to Proceed (NTP) will be issued before August 28, 2026, allowing the contractor to issue a purchase order for materials by August 31, 2026.This is contingent on ERF’s approval of an extension of the project completion date to June 30, 2028.

Mid-Year Budget Adjustment : A proposed draft mid-year budget adjustment is attached which the General Manager would like to send out to Member agencies. If the Board chooses the lower cost option 2, of the total project cost of $16,486,938 it is proposed to budget a total of $12,150,000 for the fiscal year 26-27 and the balance will be included in the budget for fiscal year 27-28.

Recommendation:

It is recommended by staff that the Board authorize the General Manager to enter into a Progressive Design Build Phase 2 Contract with McGuire & Hester for Option 2 - Not to Exceed Amount of $13,228,000, contingent upon obtaining a time extension from ERF to complete the project by June 30, 2028 and send the attached Draft Mid-Year budget adjustment to Member Agencies for approval.

Attachments:

Attachment A: McGuire and Hester Guaranteed Maximum Price Proposal-rev.1 dated 7/31/26.

Attachment B: Progressive Design Build Contract for the Project with Attachments.

Attachment C: Proposed draft mid-year budget adjustment for fiscal year 26-27 41 514
July 31, 2026
To: Kishen Prathivadi
General Manager
Sewer Authority Mid-Coastside
RE: Force Main in Montara Replacement Project – Guaranteed Maximum Price Proposal – Rev 1
Dear Mr. Prathivadi,
We are pleased to submit our GMP pricing proposal for the Force Main in Montara Replacement Project, Phase 2, Construction Services.

Our pricing is based on the 60% design drawing set and project specifications provided by MNS Engineers. The SOW of work to include:

The replacement of 13,395 feet of 12-to-14-inch diameter Ductile Iron Pipe (DIP) with 13,654 feet of HDPE pipe, installing air release valves and air vacuum release valves (18 total), blowoff valves (4 total) and installing four bypass stations. And the installation of 390 lineal feet of 10- inch HDPE pipe and tie-in to the Princeton force main system.

The pipeline replacement will require a combination of open-cut trench installation, horizontal directional drilling through environmentally sensitive areas, and boring under HWY 1 in two locations.

Option 1: Attempt to complete the project on or before June 30, 2027…………..$17,328,100.00 Option 2: Extend the completion date by one year to June 30, 2028…………….$13,228,000.00 Clarifications:
• Jack and bore subcontract includes one mobilization only. • Jack and bore subcontract pricing expires 8/31/26.
• Piping materials quote pricing 7/31/26. (M&H will cover any increases to this until 8/31/26)
• No work will be done the day before the pumpkin festival, Friday 10/16/26. • Specification S312316: Calls for slurry backfill in paved areas only. Detail 3, DWG C-32 calls for slurry backfill in all trenches. We are deferring to DWG C-32. • Detail 3, DWG C-32: Calls for 3” cold mill and AC overlay for entire width of lane. We are not open-cut trenching any road parallel sections of asphalt, so this is not applicable. We are assuming a 12” cut on either side of the trench in perpendicular road crossings. • The drawings show Class II AB backfill for bypass vaults and the Princeton connection vault.

We are assuming that slurry backfill will be acceptable in these locations along with the trench.
42 515
• Our pricing includes engineering support during construction, submittal reviews, RFI review and response, construction observation, survey, layout and staking, and record drawings.
• Option 2 does not contain any cost for dewatering. If needed, dewatering will come out of the contingency fund.
• This pricing does not include $480,000 construction contingency identified in the Risk Matrix. This cost will be carried by the owner in the owner’s contingency. • We have included the costs for hydrostatic testing of the new system. • We have included tracer wires for all HDD installed pipe. • Because of the shortened construction window and an expected wetter than normal winter in 2026-2027, we cannot guarantee our ability to complete the project as presented in Option 1 on or before June 30, 2027.
• The production rates of some tasks are based on a consistent supply of bulk cement. Freight delays due to site logistics, unforeseen conditions, or traffic delays may impact the production rate.
• The warranty period included in our pricing shall not exceed one year from the date of substantial completion of the project scope.
• HDD pricing is based on drilling in sand, silt, or clay and does not include drilling through rock or cobble.

Exclusions:
• No costs for video inspection of completed systems have been included. • We have not included costs for air testing any part of the new system. • We are excluding the costs for the rock and fabric below the pipe bedding as shown in Detail 3 on DWG C-32.
• We have not included costs for engineered calculations for HDD operations. • We are excluding the cost of gyro location of HDD pipe. • We have not included costs for the removal or relocation of existing utilities. • We have not included costs for handling, removal, or disposal of hazardous or contaminated substances.
• No costs have been included for utility settlement, vibration monitoring, sound monitoring, or associated mitigation measures.
• Our pricing does not include labor requirements for local hires or any Disadvantaged Business Enterprise (DBE) requirements.
• We have not included any costs associated with third party testing or inspection. • Environmental, paleontological, and cultural monitoring costs have not been included. • Biological resources compliance costs are not included.

Thank you for the opportunity to provide our proposal. If you have any questions, please don’t hesitate to contact us.
43 516
Sincerely,
McGuire and Hester
Wade Schell
Wade Schell
Preconstruction Manager
Attachment: Standard Terms and Conditions
44 517

STANDARD TERMS AND CONDITIONS

1. Price based on the award of the complete scope of work included herein.

2. All other work not specifically included shall be considered excluded from this proposal.

3. The inclusions, exclusions, and clarifications noted in this proposal shall be made a part of the contract and shall supersede any conflicting provisions.

4. Change order work to include 10% markup for project overhead and 15% markup for profit. Work performed on a T&M basis will be paid according to the latest M&H labor and equipment rate sheets.

5. This proposal is valid for (30) days from the date of this proposal.

6. Payments are due within 30 days of invoice. Late payments subject to 1½% monthly finance charge.

7. Retention (5% max.) to be released within 35 days of M&H final billing.

8. Retention monies withheld to be deposited in an escrow account with M&H as the beneficial owner.

9. Project schedule to be mutually agreeable and will allow M&H to perform its work in an efficient sequence and manner. M&H to receive a copy of the baseline and subsequent schedule updates.

10. Client to provide unobstructed access to all areas of work.

11. Work requested during or near inclement weather or wet jobsite conditions may result in additional costs.

12. On-site construction water to be provided by client. Hydrant meter and imported water costs by others.

13. Proposal based on a contract agreement that is mutually agreeable.

14. M&H carries the following insurance limits with admitted “A” rated insurance carriers:
a. $2,000,000 - General Liability
b. $2,000,000 - Auto Liability
c. $1,000,000 - Employers Liability (Workers Compensation) d. $5,000,000 - Pollution Liability
e. $25,000,000 - Excess Liability coverage (attaches over General, Auto, & Employers Liability) f. $10,000,000 - Builders Risk/Installation coverage
g. $1,000,000 - Earthquake and Flood (subject to specific exclusions) h. $2,000,000 -Design/Build Professional Liability

15. Additional costs apply for the following insurance enhancements: Railroad Protective Liability, Longshoreman/Harbor Workers, Federal Employers Liability Act, Job Specific Pollution Liability, or other.

16. OCIP / CCIP Policies including deductibles, are subject to M&H review and approval.

17. Any cancellation or modification of Owner or General Contractor procured Wrap Up (OCIP or CCIP) insurance will result in reimbursement to Contractor or Subcontractor tier to procure equivalent coverage. To the extent equivalent insurance is unavailable, or a gap in coverage does occur as a result of cancellation or modification, Owner or General Contractor shall reimburse contractor and/or subcontractor tier for all costs incurred for any and all claims.

18. This proposal includes and follows McGuire and Hester’s Site Specific Covid-19 Response Protocol dated 5/6/2020. M&H’s Site Safety Representative (SSR) is considered a senior member of the proposed crew. Third party Jobsite Safety Accountability Supervisor (JSAS), if required, is not included in this proposal. Overall site safety is the responsibility of the Owner, or General Contractor which includes providing adequate social distance space for M&H to productively and safely perform our work, and in accordance with CalOSHA and CDPH requirements.

19. During a Force Majeure or similar event (strikes, lockouts, terrorism, acts of God, pandemics, changes in law/governmental actions (tariffs or duties) there may be material, equipment, trucking and/or manpower shortages, impacts to the work, or supply chain issues. McGuire and Hester will do our best to mitigate these issues, but will not be held liable for delays, or impacts to the project schedule and/or costs associated with such impacts.
45 518

SEWER AUTHORITY MID-COASTSIDE

FORCE MAIN IN MONTARA

REPLACEMENT PROJECT
Progressive Design-Build Agreement
Document No. 544
Second Edition, 2024
© Design-Build Institute of America
Washington, D.C.

DBIA Contract Document #544
DRAFT 46
519
Instruction Sheet for DBIA Document No. 544 Page 2
© 2024 Design-Build Institute of America
DRAFT 47
520
DBIA Document No. 544 Page 1
Progressive Design-Build Agreement
© 2024 Design-Build Institute of America
Progressive Design-Build Agreement
This document has important legal consequences. Consultation with an attorney is recommended with respect to its completion or modification.

This AGREEMENT is made as of the day of in
the year of 2026 , by and between the following parties, for services in connection with the Project identified below:

OWNER:
(Name and address)
Sewer Authority Mid-Coastside
Rep: Kishen Prathivadi, PE, PMP, General Manager
1000 N. Cabrillo Highway, Half Moon Bay, CA 94019
[email protected]
650-726-0124 (office)
DESIGN-BUILDER:
(Name and address)
McGuire & Hester, A California Corporation
Rep: Bruce Daseking, Executive VP, Business Development 9009 Railroad Avenue, Oakland, CA 94603
[email protected]
510-632-7676 (phone)
510-562-5209 (fax)
PROJECT:
(Include Project name and location as it will appear in the Contract Documents) SAM Force Main Replacement in Montara
San Mateo County, CA
In consideration of the mutual covenants and obligations contained herein, Owner and Design-Builder agree as set forth herein.

DRAFT 48
521
DBIA Document No. 544 Page 2
Progressive Design-Build Agreement
© 2024 Design-Build Institute of America
Article 1
Design-Builder’s Services and Responsibilities

1.1 General Services.

1.1.1 Owner shall provide Design-Builder with Owner’s Project Criteria describing Owner’s program requirements and objectives for the Project as set forth in Exhibit A. Owner’s Project Criteria shall include Owner’s use, space, price, time, site, performance, and expandability requirements. Owner’s Project Criteria may include conceptual documents, design specifications, design performance specifications, and other technical materials and requirements prepared by or for Owner. Design-Builder acknowledges that the Owner’s Project Criteria are provided for purposes of establishing the Owner’s requirements and objectives for the Project and that DesignBuilder remains responsible for compliance with all applicable federal, state, and local laws, regulations, codes, permit requirements, and professional standards applicable to the design and construction of the Work.

1.1.2 If Owner’s Project Criteria have not been developed prior to the execution of this Agreement, Design-Builder will assist Owner in developing Owner’s Project Criteria, with such service deemed to be an additional service for which additional compensation shall be paid by Owner to Design-Builder. If Owner has developed Owner’s Project Criteria prior to executing this Agreement, Design-Builder shall review and prepare a written evaluation of such criteria, including recommendations to Owner for different and innovative approaches to the design and construction of the Project. The parties shall meet to discuss Design-Builder’s written evaluation of Owner’s Project Criteria and agree upon what revisions, if any, should be made to such criteria. DesignBuilder’s review shall include identification of any apparent conflicts with applicable laws, regulations, permits, or governmental requirements known to Design-Builder.

1.2 Phased Services.

1.2.1 Phase 1 Services. Design-Builder shall perform the services of design, pricing, and other services for the Project based on Owner’s Project Criteria, as may be revised in accordance with Section 1.1 hereof, as set forth in Exhibit B, Scope of Services. Design-Builder shall perform such services to the level of completion required for Design-Builder and Owner to establish the Contract Price for Phase 2, as set forth in Section 1.3 below. The Contract Price for Phase 2 shall be developed during Phase 1 on an “open-book” basis. Design-Builder’s Compensation for Phase 1 Services is set forth in Section 6.1.1 herein. The level of completion required for Phase 1 Services is defined in Exhibit B, Scope of Services (either as a percentage of design completion or by defined deliverables).

1.2.2 Phase 2 Services. Design-Builder’s Phase 2 services shall consist of the completion of design services for the Project, the procurement of all materials and equipment for the Project, the performance of construction services for the Project, the start-up, testing, and commissioning of the Project, and the provision of warranty services, all as further described in the Contract Price Amendment. Upon receipt of Design-Builder’s proposed Contract Price for Phase 2, Owner may proceed as set forth in Section 1.3. Design-Builder shall perform the Phase 2 Services in accordance with all applicable Legal Requirements, including applicable requirements governing public works projects, prevailing wages, labor compliance, environmental mitigation measures, and permitting requirements.

1.3 Proposal. Upon completion of the Phase 1 Services and any other Basis of Design Documents upon which the parties may agree, Design-Builder shall submit a proposal to Owner (the “Proposal”) for the completion of the design and construction for the Project for the Contract Price, which may be based on Lump Sum or Design-Builder’s Fee and Cost of the Work with an option for a Guaranteed Maximum Price (GMP).

DRAFT 49
522
DBIA Document No. 544 Page 3
Progressive Design-Build Agreement
© 2024 Design-Build Institute of America

1.3.1 The Proposal shall include the following unless the parties mutually agree otherwise:

1.3.1.1 The Contract Price that may be based on a Lump Sum or Design-Builder’s Fee and Cost of the Work, with an option for a GMP, which shall be the sum of:
i Design-Builder’s Fee as defined in Section 6.4.1 hereof; ii The estimated Cost of the Work as defined in Section 6.5 hereof, inclusive of any Design-Builder’s Contingency as defined in Section 6.6.2 hereof; and iii If applicable, any prices established under Section 6.1.3 hereof;

1.3.1.2 The Basis of Design Documents, which may include, by way of example, Owner’s Project Criteria, which are set forth in detail and are attached to the Proposal;

1.3.1.3 A list of the assumptions and clarifications made by Design-Builder in the preparation of the Proposal, which list is intended to supplement the information contained in the drawings and specifications and is specifically included as part of the Basis of Design Documents;

1.3.1.4 The Scheduled Substantial Completion Date upon which the Proposal is based, to the extent said date has not already been established under Section 5.2.1 hereof, and a schedule upon which the Scheduled Substantial Completion Date is based and a Project Schedule for the Work;

1.3.1.5 If applicable, a list of Allowance Items, Allowance Values, and a statement of their basis;

1.3.1.6 If applicable, a schedule of alternate prices;

1.3.1.7 If applicable, a schedule of unit prices;

1.3.1.8 If applicable, a statement of Additional Services which may be performed but which are not included in the Proposal, and which, if performed, shall be the basis for an increase in the Contract Price and/or Contract Time(s);

1.3.1.9 If applicable, a Savings provision;

1.3.1.10 If applicable, Performance Incentives;

1.3.1.11 The time limit for acceptance of the Proposal; and

1.3.1.12 An Owner’s permit list, a list detailing the permits and governmental approvals that Owner will bear responsibility to obtain.

1.3.1.13 The Proposal shall identify any permits, governmental approvals, utility approvals, or other third-party approvals required for completion of the Project and shall identify the party responsible for obtaining each such approval.

1.3.2 Review and Adjustment to Proposal.

1.3.2.1 After submission of the Proposal, Design-Builder and Owner shall meet to discuss and review the Proposal. If Owner has any comments regarding the Proposal or finds any inconsistencies or inaccuracies in the information presented, it shall promptly give written notice to Design-Builder of such comments or findings. If appropriate, Design-Builder shall, upon receipt of Owner’s notice, make appropriate adjustments to the Proposal. Owner’s review, comments, or approval of the Proposal shall not constitute approval of DesignBuilder’s means, methods, sequencing, or professional design responsibility.

DRAFT 50
523
DBIA Document No. 544 Page 4
Progressive Design-Build Agreement
© 2024 Design-Build Institute of America

1.3.2.2 Acceptance of Proposal. If Owner accepts the Proposal, as may be amended by Design-Builder, the Contract Price and its basis shall be set forth in an amendment to this Agreement, when mutually agreed between the parties (Contract Price Amendment).

Once the parties have agreed upon the Contract Price and Owner has issued a Notice to Proceed with Phase 2, Design-Builder shall perform the Phase 2 Services, all as further described in the Contract Price Amendment, as it may be revised.

1.3.2.3 Failure to Accept the Proposal. If Owner rejects the Proposal, or fails to notify Design-Builder in writing on or before the date specified in the Proposal that it accepts the Proposal, the Proposal shall be deemed withdrawn and of no effect. In such event, Owner and Design-Builder shall meet and confer as to how the Project will proceed, with Owner having the following options:
i Owner may suggest modifications to the Proposal, whereupon, if such modifications are accepted in writing by Design-Builder, the Proposal shall be deemed accepted and the parties shall proceed in accordance with Section

1.3.2.2 above;
ii Owner may authorize Design-Builder to continue to proceed with the Work based on reimbursement as provided in Section 6.1.2 hereof without a Contract Price, in which case all references in this Agreement to the Contract Price shall not be applicable; or
iii Owner may terminate this Agreement for convenience in accordance with Article 8 hereof.

Article 2
Contract Documents

2.1 The Contract Documents are comprised of the following:

2.1.1 All written modifications, amendments, minor changes, and Change Orders to this Agreement issued in accordance with DBIA Document No. 535, Standard Form of General Conditions of Contract Agreement Between Owner and Design-Builder (2022 Edition) (“General Conditions of Contract”);

2.1.2 The Contract Price Amendment or the Proposal accepted by Owner in accordance with Section 1.3 above.

2.1.3 This Agreement, including all exhibits (list for example, performance standard requirements, performance incentive arrangements, markup exhibits, allowances, unit prices, or exhibit detailing offsite reimbursable personnel) but excluding, if applicable, the Contract Price Amendment;

2.1.4 The General Conditions of Contract;

2.1.5 Construction Documents prepared and approved in accordance with Section 2.4 of the General Conditions of Contract;

2.1.6 Exhibit B, Scope of Services; and

2.1.7 The following other documents:

2.1.7.1 Exhibit A, Owners Criteria

2.1.7.2 Exhibit B, Phase 2 Supplemental Conditions;
DRAFT 51
524
DBIA Document No. 544 Page 5
Progressive Design-Build Agreement
© 2024 Design-Build Institute of America

2.1.7.3 Exhibit C, Insurance and Bond Requirements

2.1.7.4 Exhibit D, Non-Collusion Declaration

2.1.7.5 Guaranteed Maximum Price Proposal

2.1.7.6 Risk Register

2.1.7.7 Applicable laws, regulations, permits, and governmental approvals shall be deemed incorporated into the Contract Documents to the extent applicable to the Work.

Article 3
Interpretation and Intent

3.1 Design-Builder and Owner, at the time of acceptance of the Proposal by Owner in accordance with Section 1.3 hereof, shall carefully review all the Contract Documents, including the various documents comprising the Basis of Design Documents for any conflicts or ambiguities. Design-Builder and Owner will discuss and resolve any identified conflicts or ambiguities prior to execution of the Agreement, or if applicable, prior to Owner’s acceptance of the Proposal.

3.2 The Contract Documents are intended to permit the parties to complete the Work and all obligations required by the Contract Documents within the Contract Time(s) for the Contract Price. The Contract Documents are intended to be complementary and interpreted in harmony so as to avoid conflict, with words and phrases interpreted in a manner consistent with construction and design industry standards. In the event inconsistencies, conflicts, or ambiguities between or among the Contract Documents are discovered after Owner’s acceptance of the Proposal, Design-Builder and Owner shall attempt to resolve any ambiguity, conflict, or inconsistency informally, recognizing that the Contract Documents shall take precedence in the order in which they are listed in Section 2.1 hereof. (Note, the parties are strongly encouraged to establish in the Contract Price Amendment or Proposal (as applicable) the priority of the various documents comprising such exhibit or proposal.)

3.3 Terms, words, and phrases used in the Contract Documents, including this Agreement, shall have the meanings given them in the General Conditions of Contract.

3.4 If Owner’s Project Criteria contain design specifications: (a) Design-Builder is entitled to reasonably rely on the accuracy of the information represented in the design specifications and their compatibility with other information set forth in Owner’s Project Criteria, including any design performance specifications; and (b) Design-Builder shall be entitled to an adjustment in its Contract Price and/or Contract Time(s) to the extent Design-Builder’s cost and/or time of performance have been adversely impacted by such inaccurate design specification. Nothing herein relieves Design-Builder of its obligation to perform professional services in accordance with applicable standards of care, applicable codes, and governmental requirements.

3.5 The Contract Documents form the entire agreement between Owner and Design-Builder and by incorporation herein are as fully binding on the parties as if repeated herein. No oral representations or other agreements have been made by the parties except as specifically stated in the Contract Documents.

Nothing contained in this Agreement shall be construed as a waiver of any requirement imposed upon Owner or Design-Builder by applicable law, including requirements applicable to public agencies and public works projects
DRAFT 52
525
DBIA Document No. 544 Page 6
Progressive Design-Build Agreement
© 2024 Design-Build Institute of America
Article 4
Ownership of Work Product

4.1 Work Product. All drawings, specifications and other documents and electronic data, including such documents identified in the General Conditions of Contract, furnished by Design-Builder to Owner under this Agreement (“Work Product”) are deemed to be instruments of service and Design-Builder shall retain the ownership and property interests therein, including but not limited to any intellectual property rights, copyrights, and/or patents, subject to the provisions set forth in Sections 4.2 through 4.5 below.

Notwithstanding the foregoing, Design-Builder grants Owner a perpetual, irrevocable, royalty-free license to use, reproduce, distribute, and modify the Work Product for purposes related to the Project, including operation, maintenance, repair, modification, replacement, completion, and future improvements to the Project.

4.2 Owner’s License upon Project Completion and Payment in Full to Design-Builder. Upon Owner’s payment in full for all Work performed under the Contract Documents, Design-Builder shall grant Owner a perpetual license to use the Work Product in connection with Owner’s occupancy of the Project, conditioned on Owner’s express understanding that its alteration of the Work Product without the involvement of DesignBuilder is at Owner’s sole risk and without liability or legal exposure to Design-Builder or anyone working by or through Design-Builder, including Design Consultants of any tier (collectively the “Indemnified Parties”), and on the Owner’s obligation to provide the indemnity set forth in Section 4.5 herein.

4.3 Owner’s License upon Owner’s Termination for Convenience or Design-Builder’s Election to Terminate. If Owner terminates this Agreement for its convenience as set forth in Article 8 hereof, or if Design-Builder elects to terminate this Agreement in accordance with Section 11.4 of the General Conditions of Contract, Design-Builder shall, upon Owner’s payment in full of the amounts due DesignBuilder under the Contract Documents, grant Owner a limited license to use the Work Product to complete the Project and subsequently occupy the Project, and Owner shall thereafter have the same rights as set forth in Section 4.2 above, conditioned on the following:

4.3.1 Use of the Work Product is at Owner’s sole risk without liability or legal exposure to any Indemnified Party, and on the Owner’s obligation to provide the indemnity set forth in Section 4.5 herein, and

4.4 Owner’s License upon Design-Builder’s Default. If this Agreement is terminated due to DesignBuilder’s default pursuant to Section 11.2 of the General Conditions of Contract, then Design-Builder grants Owner a limited license to use the Work Product to complete the Project and subsequently occupy the Project, and Owner shall thereafter have the same rights and obligations as set forth in Section 4.2 above.

Notwithstanding the preceding sentence, if it is ultimately determined that Design-Builder was not in default, Owner shall be deemed to have terminated the Agreement for convenience, and Design-Builder shall be entitled to the rights and remedies set forth in Section 4.3 above. Such license shall become effective immediately upon termination due to Design-Builder default and shall not require additional payment by Owner beyond amounts properly due under the Contract Documents.

4.5 Owner’s Indemnification for Use of Work Product. Owner shall not be responsible for claims arising from Design-Builder’s negligent acts, errors, omissions, breach of contract, or failure to comply with applicable professional standards. To the extent permitted by law, Owner shall only be responsible for claims arising solely from Owner’s unauthorized modification of Work Product after completion of the Project without involvement of Design-Builder.

Article 5
Contract Time

5.1 Date of Commencement. The Phase 1 Services shall commence within five (5) days of DesignBuilder’s receipt of Owner’s Notice to Proceed unless the parties mutually agree otherwise in writing. The DRAFT 53
526
DBIA Document No. 544 Page 7
Progressive Design-Build Agreement
© 2024 Design-Build Institute of America
Work shall commence within five (5) days of Design-Builder’s receipt of Owner’s Notice to Proceed for Phase 2 Services (“Date of Commencement”) if the Proposal is accepted and the Contract Price Amendment is amended to this Agreement unless the parties mutually agree otherwise in writing.

5.2 Substantial Completion and Final Completion.

5.2.1 Substantial Completion of the entire Work shall be achieved no later than June 30, 2028 The parties agree that the definition for Substantial Completion set forth in Section 1.2.19 of the General Conditions of Contract is hereby modified to read as follows:
“Substantial Completion is the date on which the Work, or an agreed upon portion of the Work, is sufficiently complete in accordance with the Contract Documents so that Owner can occupy and use the Project or a portion thereof for its intended purposes, provided, however, that Substantial Completion shall be deemed to have been achieved no later than the date of issuance of a Temporary Certificate of Occupancy issued by the local building official, if a Temporary Certificate of Occupancy is applicable to the Project.”

5.2.2 Interim milestones and/or Substantial Completion of identified portions of the Work shall be achieved as follows: (Insert any interim milestones (“Scheduled Interim Milestone Dates”) for portions of the Work with different scheduled dates for Substantial Completion.)

5.2.3 Final Completion of the Work or identified portions of the Work shall be achieved as expeditiously as reasonably practicable. Final Completion is the date when all Work is complete pursuant to the definition of Final Completion set forth in Section 1.2.8 of the General Conditions of Contract. Design-Builder shall diligently pursue Final Completion and shall not unreasonably delay completion of punch list items, closeout documentation, testing, commissioning, record drawings, warranties, manuals, or other required deliverables.

5.2.4 All of the dates set forth in this Article 5 (“Contract Time(s)”) shall be subject to adjustment in accordance with the General Conditions of Contract. Design-Builder shall provide timely notice and supporting documentation for any request for adjustment to Contract Time in accordance with the Contract Documents.

5.3 Time is of the Essence. Owner and Design-Builder mutually agree that time is of the essence with respect to the dates and times set forth in the Contract Documents.

5.4 Liquidated Damages. Design-Builder understands that if Substantial Completion is not attained by the Scheduled Substantial Completion Date, Owner will suffer damages which are difficult to determine and accurately specify. Design-Builder agrees that if Substantial Completion is not attained by June 30, 2028 ”, Design-Builder shall pay Owner ONE THOUSAND Dollars ($1,000) as liquidated damages for each day that Substantial Completion extends beyond the LD Date.

5.5 Any liquidated damages assessed pursuant to this Agreement shall be in lieu of all liability for any and all extra costs, losses, expenses, claims, penalties, and any other damages, whether special or consequential, and of whatsoever nature, incurred by Owner which are occasioned by any delay in achieving Substantial Completion, Interim Milestone Dates (if any), or Final Completion.

Early Completion Bonus. N/A
DRAFT 54
527
DBIA Document No. 544 Page 8
Progressive Design-Build Agreement
© 2024 Design-Build Institute of America

5.6 Owner’s Review Time. The parties have established the following maximum and minimum amount of time for Owner to review Design Submissions and the Project Schedule or any updates thereto unless the parties agree in writing otherwise.

5.6.1 Owner shall have a minimum of 14 Business days of receipt by Owner to review all Design Submissions, the Project Schedule, and any updates thereto.

5.6.2 Owner shall review and (if applicable) provide a response to Design-Builder on all Design Submissions, the Project Schedule, and any updates thereto within 14 Business days of receipt by Owner.

5.6.3 Owner review, comment, or approval shall not relieve Design-Builder of responsibility for compliance with the Contract Documents, applicable laws, professional standards, or completeness of the Work
Article 6
Contract Price

6.1 Contract Price.

6.1.1 Phase 1 Services were completed under a separate contract..

6.1.2 For Phase 2 Services, Owner shall pay Design-Builder in accordance with Article 6 of the General Conditions of Contract a contract price (“Contract Price”) equal to the Lump Sum amount set forth in Section 6.2 hereof or in the Contract Price Amendment, or equal to the Design-Builder’s Fee (as defined in Section 6.4 hereof) plus the Cost of the Work (as defined in Section 6.5 hereof), subject to any GMP established in Section 6.6 hereof or as set forth in the Contract Price Amendment and any adjustments made in accordance with the General Conditions of Contract.

6.1.3 For the specific Work set forth below, Owner agrees to pay Design-Builder, as part of the Contract Price, on the following basis: (This is an optional section intended to provide the parties with flexibility to identify and price limited services.)

6.2 Guaranteed Maximum Price. Owner shall pay Design-Builder in accordance with Article 6 of the General Conditions of Contract the sum of Thirteen Million and Two Hundred Twenty-Eight Thousand Dollars ($13,228,000) (“Contract Price”) (“Contract Price”) for the Work for Phase 2 Services, subject to adjustments made in accordance with the General Conditions of Contract. Unless otherwise provided in the Contract Documents, the Contract Price is deemed to include all sales, use, consumer and other taxes mandated by applicable Legal Requirements.

6.3 Markups for Changes. If the Contract Price requires an adjustment due to changes in the Work, and the cost of such changes is determined under Section 9.4.1. of the General Conditions of Contract, the following markups shall be allowed on such changes:

6.3.1 For additive Change Orders, including additive Change Orders arising from both additive and deductive items, it is agreed that Design-Builder shall receive a Fee of 15 percent (Fifteen %) of the additional costs incurred for that Change Order, plus any other markups set forth at Exhibit hereto.

6.3.2 For deductive Change Orders, including deductive Change Orders arising from both additive and deductive items, the deductive amounts shall include:

No additional reduction to account for Design-Builder’s Fee or any other markup.

DRAFT 55
528
DBIA Document No. 544 Page 9
Progressive Design-Build Agreement
© 2024 Design-Build Institute of America

6.4 Design-Builder’s Fee.

6.4.1 Design-Builder’s Fee shall be:

Fifteen percent ( 15 %) of the Cost of the Work, as adjusted in accordance with Section 6.4.2 below.

6.4.2 Design-Builder’s Fee will be adjusted as follows for any changes in the Work:

6.4.2.1 For additive Change Orders, including additive Change Orders arising from both additive and deductive items, it is agreed that Design-Builder shall receive a Fee of Fifteen percent (15 %) of the additional Costs of the Work incurred for that Change Order.

An amount equal to the sum of: (a) Fifteen percent (15%) applied to the direct costs of the net reduction (which amount will account for a reduction associated with Design-Builder’s Fee.

6.5 Cost of the Work.

6.5.1 The term Cost of the Work shall mean costs reasonably incurred by Design-Builder in the proper performance of the Work. The Cost of the Work shall include only the following:

6.5.1.1 Wages of direct employees of Design-Builder performing the Work at the Site or, with Owner’s agreement, at locations off the Site, provided, however, that the costs for those employees of Design-Builder performing design services shall be calculated on the basis of prevailing market rates for design professionals performing such services or, if applicable, those rates set forth in an exhibit to this Agreement.

6.5.1.2 Wages or salaries of Design-Builder’s supervisory and administrative personnel engaged in the performance of the Work and who are located at the Site or working offSite to assist in the production or transportation of material and equipment necessary for the Work.

6.5.1.3 Wages or salaries of Design-Builder’s personnel stationed at Design-Builder’s principal or branch offices. Not Applicable

6.5.1.4 Costs incurred by Design-Builder for employee benefits, premiums, taxes, insurance, contributions and assessments required by law, collective bargaining agreements, or which are customarily paid by Design-Builder, to the extent such costs are based on wages and salaries paid to employees of Design-Builder covered under Sections

6.5.1.1 through 6.5.1.3 hereof.

6.5.2 Non-Reimbursable Costs. The following shall be excluded from the Cost of the Work:

6.5.2.1 Compensation for Design-Builder’s personnel stationed at Design-Builder’s principal or branch offices, except as provided for in Sections 6.5.1.1, 6.5.1.2, and 6.5.1.3 hereof.

6.5.2.2 Overhead and general expenses, except as provided for in Section 6.5.1 hereof, or which may be recoverable for changes to the Work.

6.5.2.3 The cost of Design-Builder’s capital used in the performance of the Work.

DRAFT 56
529
DBIA Document No. 544 Page 10
Progressive Design-Build Agreement
© 2024 Design-Build Institute of America

6.5.2.4 If the parties have agreed on a GMP, costs that would cause the GMP, as adjusted in accordance with the Contract Documents, to be exceeded.

6.6 The Guaranteed Maximum Price.

6.6.1 Design-Builder guarantees that it shall not exceed the GMP of THIRTEEN MILLION, TWOHUNDRED AND TWENTY-EIGHT THOUSAND Dollars ($13,228,000). Documents used as a basis for the GMP shall be identified in the Contract Price Amendment to this Agreement. DesignBuilder does not guarantee any specific line item provided as part of the GMP and has the sole discretion to apply payment due to overruns in one line item to savings due to underruns in any other line item. Design-Builder agrees, however, that it will be responsible for paying all costs of completing the Work which exceed the GMP, as adjusted in accordance with the Contract Documents. (While the Contract Price Amendment will be developed in advance or concurrently with the execution of this Agreement, it is recommended that such exhibit include the items set forth in Section 1.3 above, to ensure that the basis for the GMP is well understood).

6.6.2 The GMP does not include a Contingency. A contingency of FOUR HUNDRED AND EIGHTY THOUSAND Dollars ($480,000) shall be included in the Project Contingencies for the items identified in the Risk Register (Attachment 2) as Contractor’s Responsibility. In addition, the Project Contingencies includes $326,000 for items identified as Owner’s Responsibility in the Risk Register and an additional $500,000 in unanticipated costs. The total project contingencies shall be $1,306,000. Design-Builder shall provide Owner notice of all anticipated charges against the Contingency, and shall provide Owner as part of the monthly status report required by Section

2.1.2 of the General Conditions of Contract an accounting of the Contingency, including all reasonably foreseen uses or potential uses of the Contingency in the upcoming three (3) months.

Design-Builder agrees that with respect to any expenditure from the Contingency relating to a Subcontractor default or an event for which insurance or bond may provide reimbursement, DesignBuilder will in good faith exercise reasonable steps to obtain performance from the Subcontractor and/or recovery from any surety or insurance company. Design-Builder agrees that if DesignBuilder is subsequently reimbursed for said costs, then said recovery will be credited back to the Contingency. No expenditure from any contingency amount identified as Owner Responsibility shall occur without prior written approval from Owner. Design-Builder shall provide sufficient supporting documentation demonstrating the basis for each proposed contingency expenditure. Any unused contingency amounts remaining at Final Completion shall be credited to Owner unless otherwise expressly provided in the Contract Documents.

6.6.3 Savings.

6.6.3.1 If the sum of the actual Cost of the Work and Design-Builder’s Fee (and, if applicable, any prices established under Section 6.1.3 hereof) is less than the GMP, as such GMP may have been adjusted over the course of the Project, the difference (“Savings”) shall be shared as follows:
50% percent (50%) to Design-Builder and FIFTY percent (50%) to Owner, except for Consultants fees which are billed on a time and materials basis, as needed.

6.6.3.2 Savings shall be calculated and paid as part of Final Payment under Section 7.4 hereof, with the understanding that to the extent Design-Builder incurs costs after Final Completion which would have been payable to Design-Builder as a Cost of the Work, the parties shall recalculate the Savings in light of the costs so incurred, and Design-Builder shall be paid by Owner accordingly. Savings shall be calculated after completion of all Work, resolution of all claims, completion of warranty obligations, and determination of all final Project costs.

6.7 Allowance Items and Allowance Values. Not applicable.

DRAFT 57
530
DBIA Document No. 544 Page 11
Progressive Design-Build Agreement
© 2024 Design-Build Institute of America

6.8 Performance Incentives. None
Article 7
Procedure for Payment

7.1 Payment for Preliminary Services. Design-Builder and Owner agree upon the following method for partial and final payment to Design-Builder for the services hereunder: (Insert terms.)

7.2 Contract Price Progress Payments.

7.2.1 Design-Builder shall submit to Owner on the 1st and 3rd Monday of each month, beginning with the first month after the Date of Commencement, Design-Builder’s Application for Payment in accordance with Article 6 of the General Conditions of Contract.

7.2.2 Owner shall make payment within the time period required by applicable California law after Owner’s receipt of each properly submitted and accurate Application for Payment in accordance with Article 6 of the General Conditions of Contract, but in each case less the total of payments previously made, and less amounts properly withheld under Section 6.3 of the General Conditions of Contract.

7.2.3 If Design-Builder’s Fee under Section 6.4 hereof is a fixed amount, the amount of DesignBuilder’s Fee to be included in Design-Builder’s monthly Application for Payment and paid by Owner shall be proportional to the percentage of the Work completed, less payments previously made on account of Design-Builder’s Fee.

7.3 Retainage on Progress Payments.

Owner will retain five percent (5%) of each Application for Payment from the Design-Builder’s Applications for Payment pursuant to applicable state law. .

7.4 Final Payment. Design-Builder shall submit its Final Application for Payment to Owner in accordance with Section 6.7 of the General Conditions of Contract. Owner shall make payment on DesignBuilder’s properly submitted and accurate Final Application for Payment (less any amount the parties may have agreed to set aside for warranty work) within the time period required by applicable California law after Owner’s receipt of the Final Application for Payment, provided that Design-Builder has satisfied the requirements for final payment set forth in Section 6.7.2 of the General Conditions of Contract.

7.5 Interest. Payments due and unpaid by Owner to Design-Builder, whether progress payments or final payment, shall bear interest commencing five (5) days after payment is due at the rate per California state law.

7.6 Record Keeping and Finance Controls. Design-Builder acknowledges that this Agreement is to be administered on an “open book” arrangement relative to Costs of the Work. Design-Builder shall keep full and detailed accounts and exercise such controls as may be necessary for proper financial management, using accounting and control systems in accordance with generally accepted accounting principles and as may be provided in the Contract Documents. During the performance of the Work and for a period of three (3) years after Final Payment, Owner and Owner’s accountants shall be afforded access to, and the right to audit from time to time, upon reasonable notice, Design-Builder’s records, books, correspondence, receipts, subcontracts, purchase orders, vouchers, memoranda, and other data relating to the Work, all of which Design-Builder shall preserve for a period of five (5) years, or such longer period as required by applicable law after Final Payment. Such inspection shall take place at Design-Builder’s offices during normal business hours unless another location and time is agreed to by the parties. Any multipliers or markups agreed to by Owner and Design-Builder as part of this Agreement are only subject to audit to confirm that such multiplier or markup has been charged in accordance with this Agreement, but the composition of such multiplier or markup is not subject to audit. Any lump sum agreed to by Owner and DRAFT 58
531
DBIA Document No. 544 Page 12
Progressive Design-Build Agreement
© 2024 Design-Build Institute of America
Design-Builder as part of this Agreement is not subject to audit. Such records shall include records necessary to demonstrate compliance with applicable public works requirements, including prevailing wage obligations, subcontractor payments, change order costs, and reimbursable expenses. Owner’s audit rights shall include the right to review supporting documentation from subcontractors and suppliers to the extent related to reimbursable costs.

Article 8
Termination for Convenience

8.1 If Design-Builder is terminated for convenience pursuant to Section 11.6 of the General Conditions of Contract, and the parties have agreed to a payment to Design-Builder in the case of such termination of convenience, any additional compensation shall be limited to amounts expressly permitted under the Contract Documents and applicable law. Owner shall not be obligated to pay anticipated profits, consequential damages, or unearned overhead arising from termination for convenience.

Article 9
Representatives of the Parties

9.1 Owner’s Representatives.

9.1.1 Owner designates the individual listed below as its Senior Representative (“Owner’s Senior Representative”), which individual has the authority and responsibility for avoiding and resolving disputes under Section 10.2.3 of the General Conditions of Contract:

Kishen Prathivadi, PE, PMP, General Manager
1000 N. Cabrillo Highway, Half Moon Bay, CA 94019
[email protected]
650-726-0124 (office)
Owner designates the individual listed below as its Owner’s Representative, which individual has the authority and responsibility set forth in Section 3.4 of the General Conditions of Contract:

Kishen Prathivadi, PE, PMP, General Manager
1000 N. Cabrillo Highway, Half Moon Bay, CA 94019
[email protected]
650-726-0124 (office)

9.2 Design-Builder’s Representatives.

9.2.1 Design-Builder designates the individual listed below as its Senior Representative (“Design-Builder’s Senior Representative”), which individual has the authority and responsibility for avoiding and resolving disputes under Section 10.2.3 of the General Conditions of Contract:
(Identify individual’s name, title, address, and telephone numbers.) Bruce Daseking, Executive VP, Business Development
9009 Railroad Avenue, Oakland, CA 94603
[email protected]
510-632-7676 (phone)
510-562-5209 (fax)

9.2.2 Design-Builder designates the individual listed below as its Design-Builder’s Representative, which individual has the authority and responsibility set forth in Section 2.1.1 of DRAFT 59
532
DBIA Document No. 544 Page 13
Progressive Design-Build Agreement
© 2024 Design-Build Institute of America
the General Conditions of Contract: (Identify individual’s name, title, address, and telephone numbers.)
Mauro Ortega, Underground Superintendent
9009 Railroad Avenue, Oakland, CA 94603
[email protected]
510-570-7712 (phone)
Article 10
Bonds and Insurance

10.1 Insurance. Design-Builder and Owner shall procure the insurance coverages set forth in the Insurance Exhibit attached hereto and in accordance with Article 5 of the General Conditions of Contract.

10.2 Bonds and Other Performance Security. Design-Builder shall provide the following performance bond and labor and material payment bond or other performance security .All bonds required under the Contract Documents shall be issued by a surety admitted to transact surety business in the State of California and shall comply with applicable California law.:

Performance Bond.

Required Not Required
Payment Bond.

Required Not Required
Other Performance Security.

Required Not Required
Article 11
Other Provisions

11.1 Other provisions, if any, are as follows: (Insert any additional provisions.)

11.1.1 Wage Rates. Pursuant to provisions of the Labor Code Section 1770, et. seq., of the State of California, the Director of the Department of Industrial Relations has ascertained the prevailing rate of per diem wages of the locality in which the Work is to be performed and applicable to the Work to be done. Notice is hereby given that, pursuant to Section 1773 of the California Labor Code, the Authority has obtained from the Director of the Department of Industrial Relations the general prevailing rate of per diem wages and the general prevailing rate for holidays and overtime work for each craft, classification, or type of worker required to execute the work. A copy of the prevailing rate of per diem wages is on file in the office of the Authority, to which reference is hereby made and which is available to any interested party upon request, or Bidders may prefer to obtain the current prevailing rate of per diem wages directly from the California Department of Industrial Relations website (http://www.dir.ca.gov/dlsr/pwd/index.htm) or by contacting the Office of the Director - Research Unit, P.O. Box 420603, San Francisco, CA DRAFT 60
533
DBIA Document No. 544 Page 14
Progressive Design-Build Agreement
© 2024 Design-Build Institute of America
94142, (415) 703-4774. Contractor shall post a copy of the prevailing rate of per diem wages at the job site.

Design-Builder shall comply with all applicable requirements of the California Labor Code, including requirements regarding registration with the Department of Industrial Relations, certified payroll reporting, prevailing wages, and labor compliance monitoring.

If it becomes necessary to employ a craft other than those listed in the prevailing rates, the Contractor shall notify the District immediately and the District will obtain the additional prevailing rate from the Director of the Department of Industrial Relations and the rate thus determined shall be applicable as a minimum at the time of initial employment.

This project is subject to labor compliance monitoring and enforcement by the California Department of Industrial Relations. Pursuant to Section 1720 et seq. and 1770 et seq., of the California Labor Code, the successful Bidder shall pay not less than the prevailing rate of per diem wages.

11.1.2 Minimum Wage. The wage rates set forth in the prevailing rate of per diem wages are the minimum that may be paid by the Contractor. Nothing herein contained shall be construed as preventing the Contractor from paying more than the minimum set forth. In accordance with Section 1775 of the California Labor Code, the Contractor and any subcontractors shall, as a penalty to the State or political subdivision on whose behalf a Contract is made or awarded, forfeit not more than fifty dollars ($50.00) for each calendar day or portion thereof, for each worker paid less than the stipulated prevailing rate for any public work done under the Contract by the Contractor or by any subcontractor. Reference is made to Section 1775 of the Labor Code with respect to instances where the Contractor may be liable for a subcontractor’s failure to pay prevailing wages.5

11.1.3 Unauthorized Overtime Work. In accordance with Section 1813 of the California Labor Code, the Contractor shall, as a penalty to the Authority, forfeit twenty-five dollars ($25.00) for each worker employed in the execution of the Contract by the Contractor or by any subcontractor for each calendar day during which such worker is required or permitted to work more than eight hours, or for each calendar week in which such worker is required or permitted to work more than forty hours, in violation of Sections 1810-1815 of the Labor Code. Eight hours constitutes a legal day’s work.

11.1.4 Workers compensation. As required by Section 1860 of the California Labor Code, and in accordance with the provisions of Section 3700 of the Labor Code, the Contractor will be required to secure worker’s compensation coverage for its employees. Prior to commencing the work, the Contractor shall execute and file with the Authority the Workers Compensation Statement set forth in the Contract Documents.

11.1.5 Apprenticeship Requirements. Contractor agrees to comply, and to require any subcontractors to comply, with Sections 1777.5, 1777.6 and 1777.7 of the California Labor Code relating to the employment of apprentices. The responsibility for compliance with these provisions is fixed with the Contractor for all apprenticeship occupations. Under these sections of the Labor Code, Contractors and subcontractors must employ apprentices in apprenticeship occupations, where journeymen in the craft are employed on the public work, in a ratio of not less than one hour of apprentice labor for every five hours of labor performed by a journeymen (unless an exemption is granted in accordance with Section 1777.5), and Contractors and subcontractors shall not discriminate among otherwise qualified employees as indentured apprentices on any public work solely on the ground of race, religious creed, color, national origin, ancestry, sex or age, except as provided in Code 3077 of the Labor Code. Only apprentices, as defined in Section 3077, who are in training under apprenticeship standards and who have signed written apprentice agreements will be employed on public works in apprenticeship occupations. The Contractor shall furnish the Authority any and all evidence of compliance with this code section when requested DRAFT 61
534
DBIA Document No. 544 Page 15
Progressive Design-Build Agreement
© 2024 Design-Build Institute of America
by the Authority. For failure to comply with Section 1777.5 of the Labor Code, the Contractor shall be subject to the penalties in Section 1777.7 of the Labor Code.

11.1.6 Public Records Compliance. Design-Builder acknowledges that Owner is a public agency subject to the California Public Records Act and other applicable transparency laws. DesignBuilder shall maintain Project records in accordance with applicable law and shall cooperate with Owner in responding to requests for public records relating to the Project. Nothing herein shall require disclosure of records protected from disclosure by applicable law.

11.1.7 Compliance with Applicable Law. Design-Builder shall perform the Work in compliance with all applicable federal, state, and local laws, regulations, ordinances, permits, and governmental approvals applicable to the Project, including applicable environmental mitigation requirements incorporated into the Contract Documents.

11.2 Listing of Exhibits and documents incorporated herein:

Exhibit A – Owner’s Project Criteria
Exhibit B – Scope of Services
Exhibit C – Insurance Requirements
Exhibit D – Non Collusion Affidavit
Attachment 1- Standard Form of General Conditions of Contract Between Owner and DesignBuilder Guaranteed Maximum Price Proposal Attachment 2 -Risk Register
Attachment 3 – Phase 2 Supplemental Conditions
Attachment 4 – 60% Plans & Specifications
Attachment 5 – Mitigation Monitoring Requirements
Contract Price Amendment, if any.

Article 12
Limitation of Liability
Limitation. To the fullest extent permitted by law, and notwithstanding any other provision of this Agreement, the total liability, in the aggregate, of Design-Builder, its Design Consultants, and Subcontractors, surety (if any) and their respective officers, directors, employees, and agents, and any of them, to Owner and anyone claiming by, through, or under Owner, for any and all claims, losses, liabilities, costs, or damages whatsoever arising out of, resulting from, or in any way related to, the Project or this Agreement from any cause, including but not limited to the negligence, indemnity, professional errors or omissions, strict liability, breach of contract, or warranty (express or implied) shall not exceed ___Ten___ percent (__10_%) of the Contract Price. The parties agree that specific consideration has been given by Design-Builder for this limitation and that it is deemed adequate.

DRAFT 62
535
DBIA Document No. 544 Page 16
Progressive Design-Build Agreement
© 2024 Design-Build Institute of America
In executing this Agreement, Owner and Design-Builder each individually represents that it has the necessary financial resources to fulfill its obligations under this Agreement, and each has the necessary corporate approvals to execute this Agreement, and perform the services described herein.

OWNER: DESIGN-BUILDER:
______________________________
(Name of Owner) (Name of Design-Builder)

(Signature) (Signature)

(Printed Name) (Printed Name)

(Title) (Title)
Date: Date:

DRAFT 63
536
DBIA Document No. 544 Page 17
Progressive Design-Build Agreement
© 2024 Design-Build Institute of America
DRAFT 64
537
re
Standard Form of
General Conditions of
Contract Between Owner
and Design-Builder
Document No. 535
Third Edition, 2022
© Design-Build Institute of America
Washington, D.C.

DBIA Contract Document #535
DRAFT 65
538
Design-Build Institute of America - Contract Documents

LICENSE AGREEMENT
By using the DBIA Contract Documents, you agree to and are bound by the terms of this License Agreement.

1. License. The Design-Build Institute of America (“DBIA”) provides DBIA Contract Documents and licenses their use worldwide. You acknowledge that DBIA Contract Documents are protected by the copyright laws of the United States. You have a limited nonexclusive license to: (a) Use DBIA Contract Documents on any number of machines owned, leased or rented by your company or organization; (b) Use DBIA Contract Documents in printed form for bona fide contract purposes; and (c) Copy DBIA Contract Documents into any machine-readable or printed form for backup or modification purposes in support of your permitted use.

2. User Responsibility. You assume sole responsibility for the selection of specific documents or portions thereof to achieve your intended results, and for the installation, use, and results obtained from the DBIA Contract Documents.

You acknowledge that you understand that the text of the DBIA Contract Documents has important legal consequences and that consultation with an attorney is recommended with respect to use or modification of the text. You will not represent that any of the contract documents you generate from DBIA Contract Documents are DBIA documents unless (a) the document text is used without alteration or (b) all additions and changes to, and deletions from, the text are clearly shown.

3. Copies. You may not use, copy, modify, or transfer DBIA Contract Documents, or any copy, modification or merged portion, in whole or in part, except as expressly provided for in this license. Reproduction of DBIA Contract Documents in printed or machine-readable format for resale or educational purposes is expressly prohibited. You will reproduce and include DBIA’s copyright notice on any printed or machine-readable copy, modification, or portion merged into another document or program.

4. Transfers. You may not transfer possession of any copy, modification or merged portion of DBIA Contract Documents to another party, except that a party with whom you are contracting may receive and use such transferred material solely for purposes of its contract with you. You may not sublicense, assign, or transfer this license except as expressly provided in this Agreement, and any attempt to do so is void.

5. Term. The license is effective for one year from the date of purchase. DBIA may elect to terminate it earlier, by written notice to you, if you fail to comply with any term or condition of this Agreement.

6. Limited Warranty. DBIA warrants the electronic files or other media by which DBIA Contract Documents are furnished to be free from defects in materials and workmanship under normal use during the Term. There is no other warranty of any kind, expressed or implied, including, but not limited to the implied warranties of merchantability and fitness for a particular purpose. Some states do not allow the exclusion of implied warranties, so the above exclusion may not apply to you. This warranty gives you specific legal rights and you may also have other rights which vary from state to state. DBIA does not warrant that the DBIA Contract Documents will meet your requirements or that the operation of DBIA Contract Documents will be uninterrupted or error free.

7. Limitations of Remedies. DBIA’s entire liability and your exclusive remedy shall be: the replacement of any document not meeting DBIA’s "Limited Warranty" which is returned to DBIA with a copy of your receipt, or at DBIA’s election, your money will be refunded. In no event will DBIA be liable to you for any damages, including any lost profits, lost savings or other incidental or consequential damages arising out of the use or inability to use DBIA Contract Documents even if DBIA has been advised of the possibility of such damages, or for any claim by any other party. Some states do not allow the limitation or exclusion of liability for incidental or consequential damages, so the above limitation or exclusion may not apply to you.

8. Acknowledgment. You acknowledge that you have read this agreement, understand it and agree to be bound by its terms and conditions and that it will be governed by the laws of the District of Columbia. You further agree that it is the complete and exclusive statement of your agreement with DBIA which supersedes any proposal or prior agreement, oral or written, and any other communications between the parties relating to the subject matter of this agreement.

DRAFT 66
539
Instruction Sheet for DBIA Document No. 535 Page 1
© 2022 Design-Build Institute of America

INSTRUCTIONS
For DBIA Document No. 535 Standard Form of General Conditions of Contract Between Owner and Design-Builder (2022 Edition)
General Instructions
No. Subject Instruction

1. Standard
Forms
Standard form contracts have long served an important function in the United States and international construction markets. The common purpose of these forms is to provide an economical and convenient way for parties to contract for design and construction services.

As standard forms gain acceptance and are used with increased frequency, parties are able to enter into contracts with greater certainty as to their rights and responsibilities.

2. DBIA Standard
Form Contract
Documents
Since its formation in 1993, the Design-Build Institute of America (DBIA) has regularly evaluated the needs of Owners, Design-Builders, and other parties to the design-build process in preparation for developing its own contract forms. Consistent with DBIA’s mission of promulgating best design-build practices, DBIA believes that the design-build contract should reflect a balanced approach to risk that considers the legitimate interests of all parties to the design-build process. DBIA’s Standard Form Contract Documents reflect a modern risk allocation approach, allocating each risk to the party best equipped to manage and minimize that risk, with the goal of promoting best design-build practices.

3. Use of NonDBIA
Documents
To avoid inconsistencies among documents used for the same project, DBIA’s Standard Form Contract Documents should not be used in conjunction with non-DBIA documents unless the non-DBIA documents are appropriately modified on the advice of legal counsel. Moreover, care should also be taken when using different editions of the DBIA Standard Form Document on the same project to ensure consistency.

4. Legal
Consequences
DBIA Standard Form Contract Documents are legally binding contracts with important legal consequences. Contracting parties are advised and encouraged to seek legal counsel in completing or modifying these Documents.

5. Reproduction
DBIA hereby grants to purchasers a limited license to reproduce its Documents consistent with the License Agreement accompanying these Documents. At least two original versions of the Agreement should be signed by the parties. Any other reproduction of DBIA Documents is strictly prohibited.

6. Modifications
Effective contracting is accomplished when the parties give specific thought to their contracting goals and then tailor the contract to meet the unique needs of the project and the design-build team. For that reason, these Documents may require modification for various purposes including, for example, to comply with local codes and laws, or to add special terms.

DBIA’s latest revisions to its Documents provide the parties an opportunity to customize their contractual relationship by selecting various optional contract clauses that may better reflect the unique needs and risks associated with the project.

Any modifications to these Documents should be initialed by the parties. At no time should a document be re-typed in its entirety. Re-creating the document violates copyright laws and destroys one of the advantages of standard forms – familiarity with the terms.

7. Execution It is good practice to execute two original copies of the Agreement. Only persons authorized to sign for the contracting parties may execute the Agreement.

DRAFT 67
540
Instruction Sheet for DBIA Document No. 535 Page 2
© 2022 Design-Build Institute of America
Specific Instructions
Section Title Instruction
General Purpose of This
Document
The General Conditions of Contract provide the terms and conditions under which the Work of the Project will be performed.

This document accompanies DBIA Document No. 525 and DBIA Document No. 530 (each referred to herein generally as “Agreement”). It may also be incorporated by reference into other related agreements, as between Design-Builder and Design Consultant, and DesignBuilder and Subcontractor.

General Checklist
The following Sections reference documents that are to be attached to the Agreement:

Section 3.5.1 Owner’s Permit List
Article 5 Insurance and Bonds
Section 9.4.2 Unit Prices

2.1.3 Schedule The parties are encouraged, if possible, to agree to a schedule for the execution of the Work upon execution of the Agreement or upon establishing the GMP.

2.2.1 Design
Professional
Services
The parties should be aware that in addition to requiring compliance with state licensing laws for design professionals, some states also require that the design professional have a corporate professional license.

2.3.1 Standard of Care
for Design
Professional’s
Services
Design-Builder’s obligation is to deliver a design that meets prevailing industry standards.

However, DBIA has provided the parties at Article 11 of the Agreement an optional provision whereby if Owner can identify specific performance standards that can be objectively measured, Design-Builder is obligated to design the Project to satisfy these standards if this optional provision is selected. To avoid any confusion and to ensure that the parties fully understand what their obligations are, the specific performance standards should be clearly identified and should be able to be objectively measured. Design-Builder should recognize that this is a heightened standard of care that has insurance ramifications that should be discussed with Design-Builder’s insurance advisor.

3.5.1 Government
Approvals and
Permits
Design-Builder is responsible for obtaining all necessary permits, approvals, and licenses, except to the extent specific permits, approvals, and licenses are set forth in an Owner’s Permit List, which must be attached as an exhibit to the Agreement. The parties, prior to execution of the Agreement, should discuss which permits, approvals and licenses need to be obtained for the Project and which party is in the best position to do so.

5.1.1 Design-Builder’s
Insurance
Requirements
Design-Builder is obligated to provide insurance coverage from insurance carriers that meet the criteria set forth in the Insurance Exhibit attached to Section 10.1 of the Agreement.

5.1.2 Exclusions to
Design-Build
Parties are advised that their standard insurance policies may contain exclusions for the design-build delivery method. This Section 5.1.2 requires that any such exclusions be deleted from the policy.

5.2 Owner’s
Insurance
Requirements
Owner, in addition to providing the insurance set forth in this Section and Section 5.3, is also obligated to procure the insurance coverages for the amounts and consistent with the terms set forth in the Insurance Exhibit made part of the Agreement.

5.4 Bonds and Other
Performance
Security
Design-Builder is only obligated to provide bonds or other forms of performance security to the extent called for in Section 10.2 of the Agreement.

DRAFT 68
541
Instruction Sheet for DBIA Document No. 535 Page 3
© 2022 Design-Build Institute of America
Section Title Instruction

8.2.2 Compensability
for Force Majeure
Events
The parties are provided the option in the Agreement of negotiating whether Design-Builder is entitled to compensation for Force Majeure Events.

9.4.1 Contract Price
Adjustments Unit prices, if established, shall be attached pursuant to Article 2 of the Agreement.

9.4.3 Payment/
Performance of
Disputed
Services
When Owner disputes Design-Builder’s entitlement to a change order or disagrees with Design-Builder regarding the scope of Work, and nevertheless expects Design-Builder to perform the services, Design-Builder’s cash flow and ability to complete the Work will be hampered if Owner fails to pay Design-Builder for the disputed services. This Section provides a balanced approach whereby Design-Builder is required to perform the services, but Owner is required to pay fifty percent (50%) of Design-Builder’s reasonable estimated direct costs of performing such services until the dispute is settled. By so doing, Owner does not forfeit its right to deny total responsibility for payment, and Design-Builder does not give up its right to demand full payment. The dispute shall be resolved according to Article 10.

Article
10 Contract
Adjustments and
Disputes
DBIA endorses the use of partnering, negotiation, mediation and arbitration for the prevention and resolution of disputes. The General Conditions of Contract provides for the parties’ Representatives and Senior Representatives to attempt to negotiate the dispute or disagreement. If this attempt fails, the dispute shall be submitted to mandatory, non-binding mediation. Any dispute that cannot be resolved by mediation shall then be submitted to binding arbitration, unless the parties elect in the Agreement to submit their dispute to a court of competent jurisdiction.

10.3.4 Arbitration
The prevailing party in any arbitration shall receive reasonable attorneys’ fees from the other party. DBIA supports this “loser pays” provision to encourage parties to negotiate or mediate their differences and to minimize the number of frivolous disputes.

10.4 Duty to Continue
Performance
Pending the resolution of any dispute or disagreement, both Owner and Design-Builder shall continue to perform their respective duties under the Contract Documents, unless the parties provide otherwise in the Contract Documents.

10.5 Consequential
Damages
DBIA believes that it is inappropriate for either Owner or Design-Builder to be responsible to the other for consequential damages arising from the Project. This limitation on consequential damages in no way restricts, however, the payment of liquidated damages, if any, under Article 5 of the Agreement.

11.4 Design-Builder’s
Right to
Terminate for
Cause
If Design-Builder properly terminates the Agreement for cause, it shall recover from Owner in the same way as if Owner had terminated the Agreement for convenience under Section

11.6 of the General Conditions. Owner shall pay to Design-Builder its costs, reasonable overhead and profit on the costs, and an additional payment based on a percentage of the remaining balance of the Contract Price, all as set forth in Article 8 of the Agreement.

11.6.2 Termination for
Convenience:

Owner’s Use of
Work Product
Owner should not use the Termination for Convenience clause to obtain Design-Builder’s valuable design concepts and then seek lower bids from another design-builder. If Owner terminates this Agreement for its own convenience, and chooses to proceed with the Project using Design-Builder’s Work Product, Owner should pay an additional sum for the use of Design-Builder’s Work Product pursuant to Section 4.3 of the Agreement.

Article
12 Electronic Data
Design-Builder and Owner shall agree on the software and format for the transmission of Electronic Data. Ownership of Work Product in electronic form is governed by Article 4 of the Agreement. The transmitting party disclaims all warranties with respect to the media transmitting the Electronic Data, but nothing in this Article is intended to negate duties with respect to the standard of care in creating the Electronic Data.

DRAFT 69
542

TABLE OF CONTENTS
Article Name Page
Article 1 General ............................................................................................................ 1 Article 2 Design-Builder’s Services and Responsibilities................................................ 3 Article 3 Owner’s Services and Responsibilities............................................................. 7 Article 4 Hazardous Conditions and Differing Site Conditions........................................ 9 Article 5 Insurance and Bonds ..................................................................................... 10 Article 6 Payment ......................................................................................................... 12 Article 7 Indemnification ............................................................................................... 14 Article 8 Time ............................................................................................................... 16 Article 9 Changes to the Contract Price and Time ....................................................... 17 Article 10 Contract Adjustments and Disputes ............................................................. 18 Article 11 Stop Work and Termination.......................................................................... 20 Article 12 Electronic Data............................................................................................. 23 Article 13 Miscellaneous............................................................................................... 24 DRAFT 70
543
DBIA Document No. 535 Page 1
Standard Form of General Conditions of Contract Between Owner and Design-Builder © 2022 Design-Build Institute of America
Article 1
General

1.1 Mutual Obligations.

1.1.1 Owner and Design-Builder commit at all times to cooperate fully with each other and proceed on the basis of trust and good faith, to permit each party to realize the benefits afforded under the Contract Documents.

1.2 Basic Definitions.

1.2.1 Agreement refers to the executed contract between Owner and Design-Builder under DBIA Document No. 544, Standard Form of Progressive Design-Build Agreement (2022 Edition ).

1.2.2 Basis of Design Documents are as follows: For DBIA Document No. 544, Standard Form of Progressive Design-Build Agreement, the Basis of Design Documents are Owner’s Project Criteria, Design-Builder’s Proposal, and the Deviation List, if any.

1.2.3 Construction Documents are the documents, consisting of Drawings and Specifications, to be prepared or assembled by Design-Builder consistent with the Basis of Design Documents unless a deviation from the Basis of Design Documents is specifically set forth in a Change Order executed by both Owner and Design-Builder, as part of the design review process contemplated by Section

2.4 of these General Conditions of Contract.

1.2.4 Day or Days shall mean calendar days unless otherwise specifically noted in the Contract Documents.

1.2.5 Design-Build Team is comprised of Design-Builder, Design Consultant, and key Subcontractors identified by Design-Builder.

1.2.6 Design Consultant is a qualified, licensed design professional who is not an employee of Design-Builder, but is retained by Design-Builder, or employed or retained by anyone under contract with Design-Builder, to furnish design services required under the Contract Documents. A Design Sub-Consultant is a qualified, licensed design professional who is not an employee of Design Consultant but is retained by Design Consultant or employed or retained by anyone under contract to Design Consultant, to furnish design services required under the Contract Documents.

1.2.7 Design Submission means any and all documents, shop drawings, electronic information, including computer programs and computer generated materials, data, plans, drawings, sketches, illustrations, specifications, descriptions, models, and other information developed, prepared, furnished, delivered or required to be delivered by, or for, Design-Builder.

1.2.8 Final Completion is the date on which all Work is complete in accordance with the Contract Documents, including but not limited to, any items identified in the punch list prepared under Section 6.6.1 and the submission of all documents set forth in Section 6.7.2.

1.2.9 Force Majeure Events are those events that are beyond the control of both Design-Builder and Owner, including the events of war, floods, labor disputes, earthquakes, epidemics, adverse weather conditions not reasonably anticipated, and other acts of God.

1.2.10 General Conditions of Contract refer to this DBIA Document No. 535, Standard Form of General Conditions of Contract Between Owner and Design-Builder (2022 Edition).

1.2.11 GMP Exhibit means that exhibit attached to DBIA Document No. 530, Standard Form of Agreement Between Owner and Design-Builder – Cost Plus Fee With an Option for a Guaranteed Maximum Price, which exhibit will have been agreed upon by Owner and Design-Builder prior to DRAFT 71
544
DBIA Document No. 535 Page 2
Standard Form of General Conditions of Contract Between Owner and Design-Builder © 2022 Design-Build Institute of America
the execution of the Agreement.

1.2.12 GMP Proposal or Proposal means that proposal developed by Design-Builder in accordance with Section 6.6 of DBIA Document No. 530, Standard Form of Agreement Between Owner and Design-Builder, Cost Plus Fee With an Option for a Guaranteed Maximum Price or with Section 2.3 of DBIA Document No. 544, Progressive Design-Build Agreement, or DBIA Document No. 545, Progressive Design-Build Agreement for Water and Wastewater Projects.

1.2.13 Hazardous Conditions are any materials, wastes, substances and chemicals deemed to be hazardous under applicable Legal Requirements, or the handling, storage, remediation, or disposal of which are regulated by applicable Legal Requirements.

1.2.14 Legal Requirements are all applicable federal, state and local laws, codes, ordinances, rules, regulations, orders and decrees of any government or quasi-government entity having jurisdiction over the Project or Site, the practices involved in the Project or Site, or any Work.

1.2.15 Owner’s Project Criteria are developed by or for Owner to describe Owner’s program requirements and objectives for the Project, including use, space, price, time, site and expandability requirements, as well as submittal requirements and other requirements governing DesignBuilder’s performance of the Work. Owner’s Project Criteria may include conceptual documents, design criteria, design performance specifications, design specifications, and LEED® or other sustainable design criteria and other Project-specific technical materials and requirements.

1.2.16 Site is the land or premises on which the Project is located.

1.2.17 Subcontractor is any person or entity retained by Design-Builder as an independent contractor to perform a portion of the Work and shall include materialmen and suppliers.

1.2.18 Sub-Subcontractor is any person or entity retained by a Subcontractor as an independent contractor to perform any portion of a Subcontractor’s Work and shall include materialmen and suppliers.

1.2.19 Substantial Completion or Substantially Complete means the date on which the Work, or an agreed upon portion of the Work, is sufficiently complete in accordance with the Contract Documents so that Owner can occupy and use the Project or a portion thereof for its intended purposes.

1.2.20 Work is comprised of all Design-Builder’s design, construction and other services required by the Contract Documents, including procuring and furnishing all materials, equipment, services and labor reasonably inferable from the Contract Documents.

Article 2
Design-Builder’s Services and Responsibilities

2.1 General Services.

2.1.1 Design-Builder’s Representative shall be reasonably available to Owner and shall have the necessary expertise and experience required to supervise the Work. Design-Builder’s Representative shall communicate regularly with Owner and shall be vested with the authority to act on behalf of Design-Builder. Design-Builder’s Representative may be replaced only with the mutual agreement of Owner and Design-Builder.

2.1.2 Unless the parties agree on a different time period for submission of a status report, DRAFT 72
545
DBIA Document No. 535 Page 3
Standard Form of General Conditions of Contract Between Owner and Design-Builder © 2022 Design-Build Institute of America
Design-Builder shall provide Owner with a monthly status report detailing the progress of the Work, including (i) whether the Work is proceeding according to schedule; (ii) whether discrepancies, conflicts, or ambiguities exist in the Contract Documents that require resolution; (iii) whether health and safety issues exist in connection with the Work; (iv) status of the contingency account to the extent provided for in the Standard Form of Agreement Between Owner and Design-Builder Guaranteed Maximum Price; and (v) other items that require resolution so as not to jeopardize Design-Builder’s ability to complete the Work for the Contract Price and within the Contract Time(s).

Status reports shall be submitted with Design-Builder’s draft Payment Applications as a prerequisite to payment.

2.1.3 Unless a schedule for the execution of the Work has been attached to the Agreement as an exhibit at the time the Agreement is executed, Design-Builder shall prepare and submit, at least three (3) days prior to the meeting contemplated by Section 2.1.4 hereof, a schedule for the execution of the Work for Owner’s review and response. The schedule shall indicate the dates for the start and completion of the various stages of Work, including the dates when Owner information and approvals are required to enable Design-Builder to achieve the Contract Time(s). The schedule shall be revised as required by conditions and progress of the Work, but such revisions shall not relieve Design-Builder of its obligations to complete the Work within the Contract Time(s), as such dates may be adjusted in accordance with the Contract Documents. Owner’s review of, and response to, the schedule shall not be construed as relieving Design-Builder of its complete and exclusive control over the means, methods, sequences and techniques for executing the Work.

2.1.4 The parties will meet within seven (7) days after execution of the Agreement to discuss issues affecting the administration of the Work and to implement the necessary procedures, including those relating to submittals and payment, to facilitate the ability of the parties to perform their obligations under the Contract Documents.

2.2 Design Professional Services.

2.2.1 Design-Builder shall, consistent with applicable state licensing laws, including the California Architects Practice Act, Professional Engineers Act, and applicable regulations governing licensed design professionals, provide through qualified, licensed design professionals employed by Design-Builder, or procured from qualified, independent licensed Design Consultants, the necessary design services, including architectural, engineering and other design professional services, for the preparation of the required drawings, specifications and other design submittals to permit Design-Builder to complete the Work consistent with the Contract Documents. Nothing in the Contract Documents is intended or deemed to create any legal or contractual relationship between Owner and any Design Consultant.

2.2.2 Design-Builder shall employ only Design Consultants and/or Design Subconsultants who are duly licensed and qualified to perform the Work consistent with the Contract Documents. Prior to the date that Design Consultants and/or Design Subconsultants perform Work on the Project, Design-Builder shall identify in writing to Owner all Design Consultants and Design Subconsultants.

To the extent that Design-Builder has not selected a Design Consultant or Design Subconsultant prior to performing the Work, Design-Builder shall provide Owner in writing a list of any subsequently added Design Consultants and/or Design Subconsultants and their scope of Work prior to their performing Work on the Project. Owner may reasonably object to Design-Builder’s selection of any Design Consultant or Design Subconsultant, provided that the Contract Price and/or Contract Time(s) shall be adjusted to the extent that Owner’s decision impacts DesignBuilder’s cost and/or time of performance. Design-Builder shall not substitute a listed Design Consultant or Subconsultant without obtaining Owner’s prior written consent; such consent shall not be unreasonably withheld. Nothing in the Contract Documents is intended or deemed to create any legal or contractual relationship between Owner and any Design Consultant or Design Subconsultant, including but not limited to any third-party beneficiary rights.

2.3 Standard of Care for Design Professional Services.

DRAFT 73
546
DBIA Document No. 535 Page 4
Standard Form of General Conditions of Contract Between Owner and Design-Builder © 2022 Design-Build Institute of America

2.3.1 The standard of care for all design professional services performed to execute the Work shall be the care and skill ordinarily used by members of the applicable profession practicing under similar conditions at the same time and locality of the Project.

2.4 Design Development Services.

2.4.1 Design-Builder and Owner shall, consistent with any applicable provision of the Contract Documents, agree upon any interim Design Submissions that Owner may wish to review, which interim Design Submissions may include design criteria, drawings, diagrams and specifications setting forth the Project requirements.

2.4.1.1 Design Submissions shall be consistent with the Owner’s Project Criteria as well as the Basis of Design Documents, as the Basis of Design Documents may have been changed or supplemented through the design process set forth in this Section 2.4.1. By submitting Design Submissions, Design-Builder represents to the Owner that the Work depicted and otherwise shown, contained, or reflected in Design Submissions may be constructed in compliance with the then current Contract Price and Contract Time.

Notwithstanding the above, Design-Builder may propose Design Submissions that may alter the Basis of Design Documents, the Contract Price and/or Contract Time; however, Design-Builder must provide notice thereof in accordance with Article 10 of the General Conditions and obtain a Change Order before such proposed Design Submissions are incorporated into the Construction Documents.

2.4.1.2 On or about the time of the Design Submissions, Design-Builder and Owner shall meet and confer about the Design Submissions, with Design-Builder identifying during such meetings, among other things, the evolution of the design and any changes to the Basis of Design Documents, or, if applicable, previously submitted Design Submissions.

Changes to the Basis of Design Documents, including those that are deemed minor changes under Section 9.3.1, shall be processed in accordance with Article 9. Minutes of the meetings, including a full listing of all changes, will be maintained by Design-Builder and provided to all attendees for review. Following the design review meeting, Owner shall review and approve the interim Design Submissions and meeting minutes in a time that is consistent with the turnaround times set forth in Design-Builder’s schedule.

2.4.1.3 Owner shall review and respond to Design Submissions, providing any comments and/or concerns about the Design Submissions. Owner shall provide all comments on the Design Submissions within the time provided by the Contract Documents. Design-Builder shall revise the Design Submissions (and any other deliverables) in response to Owner’s comments and incorporate said responses into the next submission of Design Submissions.

2.4.1.4 If incorporation of Owner’s comments results in a design that is inconsistent with or otherwise gives rise to a change in Owner’s Project Criteria, the Basis of Design Documents, the Contract Price and/or the Contract Time, Design-Builder shall provide notice thereof in accordance with Articles 9 and 10 of the General Conditions. Changes to the Basis of Design Documents, the Contract Price and/or the Contract Time, including those that are deemed minor changes, shall be processed in accordance with Article 9 of the General Conditions.

2.4.2 Design-Builder shall submit to Owner Construction Documents setting forth in detail drawings and specifications describing the requirements for construction of the Work. The Construction Documents shall be consistent with the latest set of interim Design Submissions, as such submissions may have been modified in a design review meeting and recorded in the meeting minutes. The parties shall have a design review meeting to discuss, and Owner shall review and approve, the Construction Documents in accordance with the procedures set forth in Section 2.4.1 above. Design-Builder shall proceed with construction in accordance with the approved Construction Documents and shall submit one set of approved Construction Documents to Owner DRAFT 74
547
DBIA Document No. 535 Page 5
Standard Form of General Conditions of Contract Between Owner and Design-Builder © 2022 Design-Build Institute of America
prior to commencement of construction.

2.4.3 Owner’s review and approval of interim Design Submissions, meeting minutes, and the Construction Documents is for the purpose of mutually establishing a conformed set of Contract Documents compatible with the requirements of the Work. Neither Owner’s review nor approval of any interim Design Submissions, meeting minutes, and Construction Documents shall be deemed to transfer any design liability from Design-Builder to Owner. Design-Builder shall provide Owner with sufficient time in the Project Schedule to review and approve the Design Submissions.

2.4.4 To the extent not prohibited by the Contract Documents or Legal Requirements, DesignBuilder may prepare interim Design Submissions and Construction Documents for a portion of the Work to permit construction to proceed on that portion of the Work prior to completion of the Construction Documents for the entire Work.

2.5 Legal Requirements.

2.5.1 Design-Builder shall perform the Work in accordance with all Legal Requirements and shall provide all notices applicable to the Work as required by the Legal Requirements. Design-Builder shall, and shall require its Subcontractors and Sub-Subcontractors to, comply with all applicable California public works requirements, including without limitation prevailing wage requirements, apprenticeship requirements, contractor registration requirements, certified payroll requirements, and all requirements applicable to public works contractors and subcontractors.

2.5.2 The Contract Price and/or Contract Time(s) shall be adjusted to compensate DesignBuilder for the effects of any changes in the Legal Requirements enacted after the date of the Agreement affecting the performance of the Work, or if a Guaranteed Maximum Price is established after the date of the Agreement, the date the parties agree upon the Guaranteed Maximum Price.

Such effects may include, without limitation, revisions Design-Builder is required to make to the Construction Documents because of changes in Legal Requirements.

2.6 Government Approvals and Permits.

2.6.1 Except as identified in an Owner’s Permit List attached as an exhibit to the Agreement, Design-Builder shall obtain and pay for all necessary permits, approvals, licenses, government charges and inspection fees required for the prosecution of the Work by any government or quasigovernment entity having jurisdiction over the Project.

2.6.2 Design-Builder shall provide reasonable assistance to Owner in obtaining those permits, approvals and licenses that are Owner’s responsibility.

2.7 Design-Builder’s Construction Phase Services.

2.7.1 Unless otherwise provided in the Contract Documents to be the responsibility of Owner or a separate contractor, Design-Builder shall provide through itself or Subcontractors the necessary supervision, labor, inspection, testing, start-up, material, equipment, machinery, temporary utilities and other temporary facilities to permit Design-Builder to complete construction of the Project consistent with the Contract Documents.

2.7.2 Design-Builder shall perform all construction activities efficiently and with the requisite expertise, skill and competence to satisfy the requirements of the Contract Documents. DesignBuilder shall at all times exercise complete and exclusive control over the means, methods, sequences and techniques of construction.

2.7.3 Design-Builder shall employ only Subcontractors who are duly licensed and qualified to perform the Work and who are properly registered with the California Department of Industrial DRAFT 75
548
DBIA Document No. 535 Page 6
Standard Form of General Conditions of Contract Between Owner and Design-Builder © 2022 Design-Build Institute of America
Relations when required by Labor Code Section 1725.5 consistent with the Contract Documents.

Prior to the date that Subcontractors perform Work on the Project, Design-Builder shall identify in writing to Owner all Subcontractors. To the extent that Design-Builder has not selected a Subcontractor prior to performing the Work, Design-Builder shall provide Owner in writing a list of any subsequently added Subcontractors prior to their performing Work on the Project. Owner may reasonably object to Design-Builder’s selection of any Subcontractor, provided that the Contract Price and/or Contract Time(s) shall be adjusted to the extent that Owner’s decision impacts DesignBuilder’s cost and/or time of performance. Design-Builder may not substitute listed Subcontractors without Owner’s prior written consent; such consent shall not be unreasonably withheld.

2.7.4 Design-Builder assumes responsibility to Owner for the proper performance of the Work of Subcontractors and any acts and omissions in connection with such performance. Nothing in the Contract Documents is intended or deemed to create any legal or contractual relationship between Owner and any Subcontractor or Sub-Subcontractor, including but not limited to any third-party beneficiary rights.

2.7.5 Design-Builder shall coordinate the activities of all Subcontractors. If Owner performs other work on the Project or at the Site with separate contractors under Owner’s control, Design-Builder agrees to reasonably cooperate and coordinate its activities with those of such separate contractors so that the Project can be completed in an orderly and coordinated manner without unreasonable disruption.

2.7.6 Design-Builder shall keep the Site reasonably free from debris, trash and construction wastes to permit Design-Builder to perform its construction services efficiently, safely and without interfering with the use of adjacent land areas. Upon Substantial Completion of the Work, or a portion of the Work, Design-Builder shall remove all debris, trash, construction wastes, materials, equipment, machinery and tools arising from the Work or applicable portions thereof to permit Owner to occupy the Project or a portion of the Project for its intended use.

2.8 Design-Builder’s Responsibility for Project Safety.

2.8.1 Design-Builder recognizes the importance of performing the Work in a safe manner so as to prevent damage, injury or loss to (i) all individuals at the Site, whether working or visiting; (ii) the Work, including materials and equipment incorporated into the Work or stored on-Site or off-Site; and (iii) all other property at the Site or adjacent thereto. Design-Builder assumes responsibility for implementing and monitoring all safety precautions and programs related to the performance of the Work. Design-Builder shall, prior to commencing construction, designate a Safety Representative with the necessary qualifications and experience to supervise the implementation and monitoring of all safety precautions and programs related to the Work. Unless otherwise required by the Contract Documents, Design-Builder’s Safety Representative shall be an individual stationed at the Site who may have responsibilities on the Project in addition to safety. The Safety Representative shall make routine daily inspections of the Site and shall hold weekly safety meetings with DesignBuilder’s personnel, Subcontractors and others as applicable.

2.8.2 Design-Builder and Subcontractors shall comply with all Legal Requirements relating to safety, as well as any Owner-specific safety requirements set forth in the Contract Documents, provided that such Owner-specific requirements do not violate any applicable Legal Requirement.

Design-Builder will immediately report in writing any safety-related injury, loss, damage or accident arising from the Work to Owner’s Representative and, to the extent mandated by Legal Requirements, to all government or quasi-government authorities having jurisdiction over safetyrelated matters involving the Project or the Work.

2.8.3 Design-Builder’s responsibility for safety under this Section 2.8 is not intended in any way to relieve Subcontractors and Sub-Subcontractors of their own contractual and legal obligations and responsibility for (i) complying with all Legal Requirements, including those related to health and safety matters; and (ii) taking all necessary measures to implement and monitor all safety precautions and programs to guard against injuries, losses, damages or accidents resulting from DRAFT 76
549
DBIA Document No. 535 Page 7
Standard Form of General Conditions of Contract Between Owner and Design-Builder © 2022 Design-Build Institute of America
their performance of the Work.

2.9 Design-Builder’s Warranty.

2.9.1 Design-Builder warrants to Owner that the construction, including all materials and equipment furnished as part of the construction, shall be new unless otherwise specified in the Contract Documents, of good quality, in conformance with the Contract Documents and free of defects in materials and workmanship. Design-Builder’s warranty obligation excludes defects caused by abuse, alterations, or failure to maintain the Work in a commercially reasonable manner.

Nothing in this warranty is intended to limit any manufacturer’s warranty which provides Owner with greater warranty rights than set forth in this Section 2.9 or the Contract Documents. Design-Builder will provide Owner with all manufacturers’ warranties upon Substantial Completion.

2.10 Correction of Defective Work.

2.10.1 Design-Builder agrees to correct any Work that is found to not be in conformance with the Contract Documents, including that part of the Work subject to Section 2.9 hereof, within a period of one year from the date of Substantial Completion of the Work or any portion of the Work, or within such longer period to the extent required by any specific warranty included in the Contract Documents.

2.10.2 Design-Builder shall, within seven (7) days of receipt of written notice from Owner that the Work is not in conformance with the Contract Documents, take meaningful steps to commence correction of such nonconforming Work, including the correction, removal or replacement of the nonconforming Work and any damage caused to other parts of the Work affected by the nonconforming Work. If Design-Builder fails to commence the necessary steps within such seven (7) day period, Owner, in addition to any other remedies provided under the Contract Documents, may provide Design-Builder with written notice that Owner will commence correction of such nonconforming Work with its own forces. If Owner does perform such corrective Work, DesignBuilder shall be responsible for all reasonable costs incurred by Owner in performing such correction. If the nonconforming Work creates an emergency requiring an immediate response, the seven (7) day period identified herein shall be deemed inapplicable.

2.10.3 The one-year period referenced in Section 2.10.1 above applies only to Design-Builder’s obligation to correct nonconforming Work and is not intended to constitute a period of limitations for any other rights or remedies Owner may have regarding Design-Builder’s other obligations under the Contract Documents.

Article 3
Owner’s Services and Responsibilities

3.1 Duty to Cooperate.

3.1.1 Owner shall, throughout the performance of the Work, cooperate with Design-Builder and perform its responsibilities, obligations and services in a timely manner to facilitate Design-Builder’s timely and efficient performance of the Work and so as not to delay or interfere with DesignBuilder’s performance of its obligations under the Contract Documents.

3.1.2 Owner shall provide timely reviews and approvals of interim Design Submissions and Construction Documents consistent with the turnaround times set forth in Design-Builder’s schedule.

3.1.3 Owner shall give Design-Builder timely notice of any Work that Owner notices to be DRAFT 77
550
DBIA Document No. 535 Page 8
Standard Form of General Conditions of Contract Between Owner and Design-Builder © 2022 Design-Build Institute of America
defective or not in compliance with the Contract Documents.

3.2 Furnishing of Services and Information.

3.2.1 Unless expressly stated to the contrary in the Contract Documents, Owner shall provide, at its own cost and expense, for Design-Builder’s information and use the following, all of which Design-Builder is entitled to rely upon in performing the Work:

3.2.1.1 Surveys describing the property, boundaries, topography and reference points for use during construction, including existing service and utility lines;

3.2.1.2 Geotechnical studies describing subsurface conditions, and other surveys describing other latent or concealed physical conditions at the Site;

3.2.1.3 Temporary and permanent easements, zoning and other requirements and encumbrances affecting land use, or necessary to permit the proper design and construction of the Project and enable Design-Builder to perform the Work;

3.2.1.4 A legal description of the Site;

3.2.1.5 To the extent available, record drawings of any existing structures at the Site; and

3.2.1.6 To the extent available, environmental studies, reports and impact statements describing the environmental conditions, including Hazardous Conditions, in existence at the Site.

3.2.2 Owner is responsible for securing and executing all necessary agreements with adjacent land or property owners that are necessary to enable Design-Builder to perform the Work. Owner is further responsible for all costs, including attorneys’ fees, incurred in securing these necessary agreements.

3.3 Financial Information.

3.3.1 At Design-Builder’s written request, Owner shall promptly furnish reasonable evidence satisfactory to Design-Builder that Owner has adequate funds available and committed to fulfill all of Owner’s contractual obligations under the Contract Documents. Nothing in this Section shall require Owner to disclose confidential financial information, information protected from disclosure by law, information subject to attorney-client privilege, or information inconsistent with applicable requirements governing public agencies, including the California Public Records Act. If Owner fails to furnish such financial information in a timely manner, Design-Builder may stop Work under Section 11.3 hereof or exercise any other right permitted under the Contract Documents.

3.3.2 Design-Builder shall cooperate with the reasonable requirements of Owner’s lenders or other financial sources. Notwithstanding the preceding sentence, after execution of the Agreement Design-Builder shall have no obligation to execute for Owner or Owner’s lenders or other financial sources any documents or agreements that require Design-Builder to assume obligations or responsibilities greater than those existing obligations Design-Builder has under the Contract Documents.

3.4 Owner’s Representative.

3.4.1 Owner’s Representative shall be responsible for providing Owner-supplied information and approvals in a timely manner to permit Design-Builder to fulfill its obligations under the Contract Documents. Owner’s Representative shall also provide Design-Builder with prompt notice if it observes any failure on the part of Design-Builder to fulfill its contractual obligations, including any errors, omissions or defects in the performance of the Work. Owner’s Representative shall communicate regularly with Design-Builder and shall be vested with the authority to act on behalf DRAFT 78
551
DBIA Document No. 535 Page 9
Standard Form of General Conditions of Contract Between Owner and Design-Builder © 2022 Design-Build Institute of America
of Owner.

3.5 Government Approvals and Permits.

3.5.1 Owner shall obtain and pay for all necessary permits, approvals, licenses, government charges and inspection fees set forth in Owner’s Permit List attached as an exhibit to the Agreement.

3.5.2 Owner shall provide reasonable assistance to Design-Builder in obtaining those permits, approvals and licenses that are Design-Builder’s responsibility.

3.6 Owner’s Separate Contractors.

3.6.1 Owner is responsible for all work performed on the Project or at the Site by separate contractors under Owner’s control. Owner shall contractually require its separate contractors to cooperate with and coordinate their activities so as not to interfere with Design-Builder in order to enable Design-Builder to timely complete the Work consistent with the Contract Documents.

Article 4
Hazardous Conditions and Differing Site Conditions

4.1 Hazardous Conditions.

4.1.1 Unless otherwise expressly provided in the Contract Documents to be part of the Work, Design-Builder is not responsible for any Hazardous Conditions encountered at the Site. Upon encountering any Hazardous Conditions, Design-Builder will stop Work immediately in the affected area and duly notify Owner and, if required by Legal Requirements, all government or quasi-government entities with jurisdiction over the Project or Site.

4.1.2 Upon receiving notice of the presence of suspected Hazardous Conditions, Owner shall take the necessary measures required to ensure that the Hazardous Conditions are remediated or rendered harmless. Such necessary measures shall include Owner retaining qualified independent experts to (i) ascertain whether Hazardous Conditions have actually been encountered, and, if they have been encountered, (ii) prescribe the remedial measures that Owner must take either to remove the Hazardous Conditions or render the Hazardous Conditions harmless.

4.1.3 Design-Builder shall be obligated to resume Work at the affected area of the Project only after Owner’s expert provides it with written certification that (i) the Hazardous Conditions have been removed or rendered harmless; and (ii) all necessary approvals have been obtained from all government and quasi-government entities having jurisdiction over the Project or Site.

4.1.4 Design-Builder will be entitled, in accordance with these General Conditions of Contract, to an adjustment in its Contract Price and/or Contract Time(s) to the extent Design-Builder’s cost and/or time of performance have been adversely impacted by the presence of Hazardous Conditions.

4.1.5 To the fullest extent permitted by law, Owner shall indemnify and hold harmless DesignBuilder, Design Consultants, Subcontractors, anyone employed directly or indirectly by any of them, and their officers, directors, employees and agents, from and against any and all claims, losses, damages, liabilities and expenses, including reasonable attorneys’ fees and expenses, arising out of or resulting from the presence, removal or remediation of Hazardous Conditions at the Site.

4.1.6 Notwithstanding the preceding provisions of this Section 4.1, Owner is not responsible for DRAFT 79
552
DBIA Document No. 535 Page 10
Standard Form of General Conditions of Contract Between Owner and Design-Builder © 2022 Design-Build Institute of America
Hazardous Conditions introduced to the Site by Design-Builder, Subcontractors or anyone for whose acts they may be liable. To the fullest extent permitted by law, Design-Builder shall indemnify, defend and hold harmless Owner and Owner’s officers, directors, employees and agents from and against all claims, losses, damages, liabilities and expenses, including attorneys’ fees and expenses, arising out of or resulting from those Hazardous Conditions introduced to the Site by Design-Builder, Subcontractors or anyone for whose acts they may be liable.

4.2 Differing Site Conditions.

4.2.1 Concealed or latent physical conditions or subsurface conditions at the Site that (i) materially differ from the conditions indicated in the Contract Documents or (ii) are of an unusual nature, differing materially from the conditions ordinarily encountered and generally recognized as inherent in the Work, are collectively referred to herein as “Differing Site Conditions.” If DesignBuilder encounters a Differing Site Condition, Design-Builder will be entitled to an adjustment in the Contract Price and/or Contract Time(s) to the extent Design-Builder’s cost and/or time of performance are adversely impacted by the Differing Site Condition.

4.2.2 Upon encountering a Differing Site Condition, Design-Builder shall provide prompt written notice to Owner of such condition, which notice shall not be later than fourteen (14) days after such condition has been encountered. Design-Builder shall, to the extent reasonably possible, provide such notice before the Differing Site Condition has been substantially disturbed or altered.

Article 5
Insurance and Bonds

5.1 Design-Builder’s Insurance Requirements.

5.1.1 Design-Builder is responsible for procuring and maintaining the insurance for the coverage amounts all as set forth in the Insurance Exhibit to the Agreement. Coverage shall be secured from insurance companies authorized to do business in the state in which the Project is located, and with a minimum rating set forth in the Agreement.

5.1.2 Design-Builder’s insurance shall specifically delete any design-build or similar exclusions that could compromise coverages because of the design-build delivery of the Project.

5.1.3 Prior to commencing any construction services hereunder, Design-Builder shall provide Owner with certificates evidencing that (i) all insurance obligations required by the Contract Documents are in full force and in effect and will remain in effect for the duration required by the Contract Documents; and (ii) no insurance coverage will be canceled, renewal refused, or materially changed unless at least thirty (30) days’ prior written notice is given to Owner. If any of the foregoing insurance coverages are required to remain in force after final payment is reasonably available, an additional certificate evidencing continuation of such coverage shall be submitted with the Final Application for Payment. If any information concerning reduction of coverage is not furnished by the insurer, it shall be furnished by Design-Builder with reasonable promptness according to Design-Builder’s information and belief.

5.4 Bonds and Other Performance Security.

5.4.1 If Owner requires Design-Builder to obtain performance and labor and material payment bonds, or other forms of performance security, the amount, form and other conditions of such security shall be as set forth in the Supplemental Conditions to the Agreement. For public works projects, Design-Builder shall furnish payment and performance bonds in the form and amounts DRAFT 80
553
DBIA Document No. 535 Page 11
Standard Form of General Conditions of Contract Between Owner and Design-Builder © 2022 Design-Build Institute of America
required by applicable California law, including the requirements of the California Public Contract Code.

5.4.2 All bonds furnished by Design-Builder shall be in a form satisfactory to Owner, as provided in EXHIBIT C of the Agreement. Payment bonds shall comply with applicable California statutory requirements, including all required notices, conditions, and rights of claimants under California law. The surety shall be a company qualified and registered to conduct business in the state in which the Project is located.

Article 6
Payment

6.1 Schedule of Values.

6.1.1 Unless required by Owner upon execution of this Agreement, within ten (10) days of execution of the Agreement, Design-Builder shall submit for Owner’s review and approval a schedule of values for all of the Work. The Schedule of Values will (i) subdivide the Work into its respective parts; (ii) include values for all items comprising the Work; and (iii) serve as the basis for monthly progress payments made to Design-Builder throughout the Work.

6.1.2 Owner will timely review and approve the schedule of values so as not to delay the submission of Design-Builder’s first application for payment. Owner and Design-Builder shall timely resolve any differences so as not to delay Design-Builder’s submission of its first application for payment.

6.2 Monthly Progress Payments.

6.2.1 On or before the date established in the Agreement, Design-Builder shall submit for Owner’s review and approval its Application for Payment requesting payment for all Work performed as of the date of the Application for Payment. The Application for Payment shall be accompanied by all supporting documentation required by the Contract Documents and/or established at the meeting required by Section 2.1.4 hereof. For public works projects, DesignBuilder’s Application for Payment shall include all documentation required by the Contract Documents and applicable law, including documentation reasonably necessary to demonstrate compliance with prevailing wage, certified payroll, apprenticeship, and subcontractor payment obligations.

6.2.2 The Application for Payment may request payment for equipment and materials not yet incorporated into the Project, provided that (i) Owner is satisfied that the equipment and materials are suitably stored at either the Site or another acceptable location; (ii) the equipment and materials are protected by suitable insurance; and (iii) upon payment, Owner will receive the equipment and materials free and clear of all liens and encumbrances.

6.2.3 All discounts offered by Subcontractors, Sub-Subcontractors, and suppliers to DesignBuilder for early payment shall accrue one hundred percent to Design-Builder to the extent DesignBuilder advances payment. Unless Owner advances payment to Design-Builder specifically to receive the discount, Design-Builder may include in its Application for Payment the full undiscounted cost of the item for which payment is sought.

6.2.4 The Application for Payment shall constitute Design-Builder’s representation that the Work described therein has been performed consistent with the Contract Documents, has progressed to DRAFT 81
554
DBIA Document No. 535 Page 12
Standard Form of General Conditions of Contract Between Owner and Design-Builder © 2022 Design-Build Institute of America
the point indicated in the Application for Payment, and that title to all Work will pass to Owner free and clear of all claims, liens, encumbrances, and security interests upon the incorporation of the Work into the Project, or upon Design-Builder’s receipt of payment, whichever occurs earlier.

6.3 Withholding of Payments.

6.3.1 On or before the date established in the Agreement, Owner shall pay Design-Builder all amounts properly due. If Owner determines that Design-Builder is not entitled to all or part of an Application for Payment as a result of Design-Builder’s failure to meet its obligations hereunder, as otherwise permitted by the Contract Documents or applicable law, including applicable California public works requirements, it will notify Design-Builder in writing at least five (5) days prior to the date payment is due. The notice shall indicate the specific amounts Owner intends to withhold, the reasons and contractual basis for the withholding, and the specific measures Design-Builder must take to rectify Owner’s concerns. Design-Builder and Owner will attempt to resolve Owner’s concerns prior to the date payment is due. If the parties cannot resolve such concerns, DesignBuilder may pursue its rights under the Contract Documents, including those under Article 10 hereof.

6.3.2 Notwithstanding anything to the contrary in the Contract Documents, Owner shall pay Design-Builder all undisputed amounts in an Application for Payment within the times required by the Agreement.

6.4 Right to Stop Work and Interest.

6.4.1 If Owner fails to pay timely Design-Builder any undisputed amount that becomes due, Design-Builder, in addition to all other remedies provided in the Contract Documents, may stop Work pursuant to Section 11.3 hereof only to the extent permitted by applicable law and after compliance with all notice and cure requirements set forth in the Contract Documents and applicable law. All payments due and unpaid shall bear interest at the rate set forth in the Agreement.

6.5 Design-Builder’s Payment Obligations.

6.5.1 Design-Builder will pay Design Consultants and Subcontractors, in accordance with its contractual obligations to such parties, all the amounts Design-Builder has received from Owner on account of their work. Design-Builder shall comply with all applicable California public works payment obligations, including obligations relating to payment of subcontractors, suppliers, prevailing wages, certified payroll reporting, and apprenticeship requirements. Design-Builder will impose similar requirements on Design Consultants and Subcontractors to pay those parties with whom they have contracted. Design-Builder will indemnify and defend Owner against any claims for payment and mechanic’s liens as set forth in Section 7.3 hereof.

6.6 Substantial Completion.

6.6.1 Design-Builder shall notify Owner when it believes the Work, or to the extent permitted in the Contract Documents, a portion of the Work, is Substantially Complete. Within five (5) days of Owner’s receipt of Design-Builder’s notice, Owner and Design-Builder will jointly inspect such Work to verify that it is Substantially Complete in accordance with the requirements of the Contract Documents. If such Work is Substantially Complete, Owner shall prepare and issue a Certificate of Substantial Completion that will set forth (i) the date of Substantial Completion of the Work or portion thereof; (ii) the remaining items of Work that have to be completed before final payment; (iii) provisions (to the extent not already provided in the Contract Documents) establishing Owner’s and Design-Builder’s responsibility for the Project’s security, maintenance, utilities and insurance pending final payment; and (iv) an acknowledgment that warranties commence to run on the date of Substantial Completion, except as may otherwise be noted in the Certificate of Substantial Completion.

DRAFT 82
555
DBIA Document No. 535 Page 13
Standard Form of General Conditions of Contract Between Owner and Design-Builder © 2022 Design-Build Institute of America

6.6.2 Upon Substantial Completion of the entire Work or, if applicable, any portion of the Work, Owner shall release to Design-Builder all retained amounts relating, as applicable, to the entire Work or completed portion of the Work, subject to the retention limitations and release requirements applicable to California public works projects, less an amount equal to the reasonable value of all remaining or incomplete items of Work as noted in the Certificate of Substantial Completion.

6.6.3 Owner, at its option, may use a portion of the Work which has been determined to be Substantially Complete, provided, however, that (i) a Certificate of Substantial Completion has been issued for the portion of Work addressing the items set forth in Section 6.6.1 above; (ii) DesignBuilder and Owner have obtained the consent of their sureties and insurers, and to the extent applicable, the appropriate government authorities having jurisdiction over the Project; and (iii) Owner and Design-Builder agree that Owner’s use or occupancy will not interfere with DesignBuilder’s completion of the remaining Work.

6.7 Final Payment.

6.7.1 After receipt of a Final Application for Payment from Design-Builder, Owner shall make final payment by the time required in the Agreement, provided that Design-Builder has achieved Final Completion.

6.7.2 At the time of submission of its Final Application for Payment, Design-Builder shall provide the following information:

6.7.2.1 An affidavit that there are no claims, obligations or liens outstanding or unsatisfied for labor, services, material, equipment, taxes or other items performed, furnished or incurred for or in connection with the Work which will in any way affect Owner’s interests , except for claims submitted in accordance with applicable California public works claims procedures;

6.7.2.2 A general release executed by Design-Builder waiving, upon receipt of final payment by Design-Builder, all claims, except for claims submitted in accordance with applicable California public works claims procedures and, except those claims previously made in writing to Owner and remaining unsettled at the time of final payment;

6.7.2.3 Consent of Design-Builder’s surety, if any, to final payment;

6.7.2.4 All operating manuals, warranties and other deliverables required by the Contract Documents; and

6.7.2.5 Certificates of insurance confirming that required coverages will remain in effect consistent with the requirements of the Contract Documents.

6.7.3 Upon making final payment, Owner waives all claims against Design-Builder except claims relating to (i) Design-Builder’s failure to satisfy its payment obligations, if such failure affects Owner’s interests; (ii) Design-Builder’s failure to complete the Work consistent with the Contract Documents, including defects appearing after Substantial Completion; and (iii) the terms of any special warranties required by the Contract Documents.

6.7.4 Deficiencies in the Work discovered after Substantial Completion, whether or not such deficiencies would have been included on the punch list if discovered earlier, shall be deemed warranty Work. Such deficiencies shall be corrected by Design-Builder under Sections 2.9 and

2.10 herein and shall not be a reason to withhold final payment from Design-Builder, provided, however, that Owner shall be entitled to withhold from the Final Payment the reasonable value of completion of such deficient work until such work is completed.

DRAFT 83
556
DBIA Document No. 535 Page 14
Standard Form of General Conditions of Contract Between Owner and Design-Builder © 2022 Design-Build Institute of America
Article 7
Indemnification

7.1 Patent and Copyright Infringement.

7.1.1 Design-Builder shall defend any action or proceeding brought against Owner based on any claim that the Work, or any part thereof, or the operation or use of the Work or any part thereof, constitutes infringement of any United States patent or copyright, now or hereafter issued. Owner shall give prompt written notice to Design-Builder of any such action or proceeding and will reasonably provide authority, information and assistance in the defense of same. Design-Builder shall indemnify and hold harmless Owner from and against all damages and costs, including but not limited to attorneys’ fees and expenses awarded against Owner or Design-Builder in any such action or proceeding. Design-Builder agrees to keep Owner informed of all developments in the defense of such actions.

7.1.2 If Owner is enjoined from the operation or use of the Work, or any part thereof, as the result of any patent or copyright suit, claim, or proceeding, Design-Builder shall at its sole expense take reasonable steps to procure the right to operate or use the Work. If Design-Builder cannot so procure such right within a reasonable time, Design-Builder shall promptly, at Design-Builder’s option and at Design-Builder’s expense, (i) modify the Work so as to avoid infringement of any such patent or copyright; or (ii) replace said Work with Work that does not infringe or violate any such patent or copyright.

7.1.3 Sections 7.1.1 and 7.1.2 above shall not be applicable to any suit, claim or proceeding based on infringement or violation of a patent or copyright (i) relating solely to a particular process or product of a particular manufacturer specified by Owner and not offered or recommended by Design-Builder to Owner; or (ii) arising from modifications to the Work by Owner or its agents after acceptance of the Work. If the suit, claim or proceeding is based upon events set forth in the preceding sentence, Owner shall defend, indemnify and hold harmless Design-Builder to the same extent Design-Builder is obligated to defend, indemnify and hold harmless Owner in Section 7.1.1 above.

7.1.4 The obligations set forth in this Section 7.1 shall constitute the sole agreement between the parties relating to liability for infringement of violation of any patent or copyright.

7.2 Tax Claim Indemnification.

7.2.1 If, in accordance with Owner’s direction, an exemption for all or part of the Work is claimed for taxes, Owner shall indemnify, defend and hold harmless Design-Builder from and against any liability, penalty, interest, fine, tax assessment, attorneys’ fees or other expenses or costs incurred by Design-Builder as a result of any action taken by Design-Builder in accordance with Owner’s directive. Owner shall furnish Design-Builder with any applicable tax exemption certificates necessary to obtain such exemption, upon which Design-Builder may rely.

7.3 Payment Claim Indemnification.

7.3.1 Provided that Owner is not in breach of its contractual obligation to make payments to Design-Builder for the Work, Design-Builder shall indemnify, defend and hold harmless Owner from any claims or payment claims, stop payment notices, bond claims, or other claims for payment brought against Owner or against the Project as a result of the failure of Design-Builder, or those for whose acts it is responsible, to pay for any services, materials, labor, equipment, taxes or other items or obligations furnished or incurred for or in connection with the Work. Within three (3) days of receiving written notice from Owner that such a claim or mechanic’s lien has been filed, DesignBuilder shall commence to take the steps necessary to discharge said claim or lien, including, if necessary, the furnishing of a mechanic’s lien bond. If Design-Builder fails to do so, Owner will DRAFT 84
557
DBIA Document No. 535 Page 15
Standard Form of General Conditions of Contract Between Owner and Design-Builder © 2022 Design-Build Institute of America
have the right to discharge the claim or lien and hold Design-Builder liable for costs and expenses incurred, including attorneys’ fees.

7.4 Design-Builder’s General Indemnification.

7.4.1 Except as set forth in Section 7.4.2 below, Design-Builder, to the fullest extent permitted by law, shall indemnify, hold harmless and defend Owner, its officers, directors, and employees from and against claims, losses, damages, liabilities, including attorneys’ fees and expenses, for non-party bodily injury, sickness or death and non-party property damage or destruction (other than to the Work itself) but only to the extent resulting from the negligent acts or omissions of DesignBuilder, Design Consultants, Subcontractors, anyone employed directly or indirectly by any of them or anyone for whose acts any of them may be liable.

7.4.2 For indemnity obligations that arise from professional errors and omissions, DesignBuilder, to the fullest extent permitted by law, shall indemnify Owner, its officers, directors, and employees from and against claims, losses, damages, liabilities, including attorneys’ fees and expenses, for non-party bodily injury, sickness, or death and non-party property damage or destruction (other than to the Work itself) but only to the extent resulting from the negligent acts or omissions of Design-Builder, Design Consultants, Subcontractors, anyone employed directly or indirectly by any of them or anyone for whose acts any of them may be liable.

7.4.3 If an employee of Design-Builder, Design Consultants, Subcontractors, anyone employed directly or indirectly by any of them or anyone for whose acts any of them may be liable has a claim against Owner, its officers, directors, employees, or agents, Design-Builder’s indemnity obligations set forth in Sections 7.4.1 and 7.4.2 above shall not be limited by any limitation on the amount of damages, compensation or benefits payable by or for Design-Builder, Design Consultants, Subcontractors, or other entity under any employee benefit acts, including workers’ compensation or disability acts.

7.5 Owner’s General Indemnification.

7.5.1 Owner, to the fullest extent permitted by law, shall indemnify and hold harmless DesignBuilder and any of Design-Builder’s officers, directors, and employees, from and against claims, losses, damages, liabilities, including attorneys’ fees and expenses, for bodily injury, sickness or death, and property damage or destruction (other than to the Work itself) but only to the extent resulting from the negligent acts or omissions of Owner, Owner’s separate contractors or anyone for whose acts any of them may be liable.

7.6 Limited Recourse.

7.6.1 None of the obligations set forth in this Agreement (on behalf of any party) constitute personal obligations of any natural persons who are the officers, shareholders, members, partners, employees, or agents of any party unless the natural person is expressly identified as a contracting party. All Parties to this Agreement shall not seek recourse against any natural person described herein. This provision, however, shall not protect such natural persons from liability for willful misconduct, illegal acts or intentional violation of any duty of corporate loyalty.

Article 8
Time

8.1 Obligation to Achieve the Contract Times.

8.1.1 Design-Builder agrees that it will commence performance of the Work and achieve the Contract Time(s) in accordance with Article 5 of the Agreement.

DRAFT 85
558
DBIA Document No. 535 Page 16
Standard Form of General Conditions of Contract Between Owner and Design-Builder © 2022 Design-Build Institute of America

8.2 Delays to the Work.

8.2.1 If Design-Builder is delayed on the critical path in the performance of the Work due to acts, omissions, conditions, events, or circumstances beyond its control and due to no fault of its own or those for whom Design-Builder is responsible, the Contract Time(s) for performance shall be reasonably extended by Change Order. By way of example, events that will entitle Design-Builder to an extension of the Contract Time(s) include acts or omissions of Owner or anyone under Owner’s control (including separate contractors), changes in the Work, Differing Site Conditions, Hazardous Conditions, and Force Majeure Events.

8.2.2 In addition to Design-Builder’s right to a time extension for those events set forth in Section

8.2.1 above, Design-Builder shall also be entitled to an appropriate adjustment of the Contract Price subject to compliance with the notice, documentation, and claims procedures set forth in the Contract Documents and applicable California law, provided, however, that the Contract Price shall not be adjusted for Force Majeure Events unless otherwise provided in the Agreement.

Article 9
Changes to the Contract Price and Time

9.1 Change Orders.

9.1.1 A Change Order is a written instrument issued after execution of the Agreement signed by Owner and Design-Builder, stating their agreement upon all of the following:

9.1.1.1 The scope of the change in the Work;

9.1.1.2 The amount of the adjustment to the Contract Price; and

9.1.1.3 The extent of the adjustment to the Contract Time(s).

9.1.2 All changes in the Work authorized by applicable Change Order shall be performed under the applicable conditions of the Contract Documents. Owner and Design-Builder shall negotiate in good faith and as expeditiously as possible the appropriate adjustments for such changes.

9.1.3 If Owner requests a proposal for a change in the Work from Design-Builder and subsequently elects not to proceed with the change, a Change Order shall be issued to reimburse Design-Builder for reasonable costs incurred for estimating services, design services and services involved in the preparation of proposed revisions to the Contract Documents.

9.2 Work Change Directives.

9.2.1 A Work Change Directive is a written order prepared and signed by Owner directing a change in the Work prior to agreement on an adjustment in the Contract Price and/or the Contract Time(s).

9.2.2 Owner and Design-Builder shall negotiate in good faith and as expeditiously as possible the appropriate adjustments for the Work Change Directive. Upon reaching an agreement, the parties shall prepare and execute an appropriate Change Order reflecting the terms of the agreement.

9.3 Minor Changes in the Work.

9.3.1 Minor changes in the Work do not involve an adjustment in the Contract Price and/or DRAFT 86
559
DBIA Document No. 535 Page 17
Standard Form of General Conditions of Contract Between Owner and Design-Builder © 2022 Design-Build Institute of America
Contract Time(s) and do not materially and adversely affect the Work, including the design, quality, performance and workmanship required by the Contract Documents. Design-Builder may make minor changes in the Work consistent with the intent of the Contract Documents, provided, however, that Design-Builder shall promptly inform Owner, in writing, of any such changes and record such changes on the documents maintained by Design-Builder.

9.4 Contract Price Adjustments.

9.4.1 The increase or decrease in Contract Price resulting from a change in the Work shall be determined by one or more of the following methods:

9.4.1.1 Unit prices set forth in the Agreement or as subsequently agreed to between the parties;

9.4.1.2 A mutually accepted lump sum, properly itemized and supported by sufficient substantiating data to permit evaluation by Owner;

9.4.1.3 Costs, fees and any other markups set forth in the Agreement; or

9.4.1.4 If an increase or decrease cannot be agreed to as set forth in items 9.4.1.1 through

9.4.1.3 above and Owner issues a Work Change Directive, the cost of the change of the Work shall be determined by the reasonable expense and savings in the performance of the Work resulting from the change, including a reasonable overhead and profit, as may be set forth in the Agreement.

9.4.2 If unit prices are set forth in the Contract Documents or are subsequently agreed to by the parties, but application of such unit prices will cause substantial inequity to Owner or Design-Builder because of differences in the character or quantity of such unit items as originally contemplated, such unit prices shall be equitably adjusted.

9.4.3 If Owner and Design-Builder disagree upon whether Design-Builder is entitled to be paid for any services required by Owner, or if there are any other disagreements over the scope of Work or proposed changes to the Work, Owner and Design-Builder shall resolve the disagreement pursuant to Article 10 hereof. As part of the negotiation process, Design-Builder shall furnish Owner with a good faith estimate of the costs to perform the disputed services in accordance with Owner’s interpretations. If the parties are unable to agree and Owner expects Design-Builder to perform the services in accordance with Owner’s interpretations, Design-Builder shall proceed to perform the disputed services, conditioned upon Owner issuing a written order to Design-Builder (i) directing Design-Builder to proceed; and (ii) specifying Owner’s interpretation of the services that are to be performed. If this occurs, Design-Builder shall be entitled to submit in its Applications for Payment an amount equal to fifty percent (50%) of its reasonable estimated direct cost to perform the services, and Owner agrees to pay such amounts, with the express understanding that (i) such payment by Owner does not prejudice Owner’s right to argue that it has no responsibility to pay for such services; and (ii) receipt of such payment by Design-Builder does not prejudice DesignBuilder’s right to seek full payment of the disputed services if Owner’s order is deemed to be a change to the Work. Nothing in this Section shall constitute a waiver of any statutory claims procedure applicable to California public works contracts.

9.5 Emergencies.

9.5.1 In any emergency affecting the safety of persons and/or property, Design-Builder shall act, at its discretion, to prevent threatened damage, injury or loss. Any change in the Contract Price and/or Contract Time(s) on account of emergency work shall be determined as provided in this Article 9.

DRAFT 87
560
DBIA Document No. 535 Page 18
Standard Form of General Conditions of Contract Between Owner and Design-Builder © 2022 Design-Build Institute of America
Article 10
Contract Adjustments and Disputes

10.1 Requests for Contract Adjustments and Relief.

10.1.1 If either Design-Builder or Owner believes that it is entitled to relief against the other for any event arising out of or related to the Work or Project, such party shall provide written notice to the other party of the basis for its claim for relief. Such notice shall, if possible, be made prior to incurring any cost or expense and in accordance with any specific notice requirements contained in applicable sections of these General Conditions of Contract. Except to the extent a different procedure is required by applicable California law or the Contract Documents governing public works claims written notice shall be given within a reasonable time, not to exceed twenty-one (21) days, after the occurrence giving rise to the claim for relief or after the claiming party reasonably should have recognized the event or condition giving rise to the request, whichever is later. The claimant shall provide more complete information with respect to the claim within fourteen (14) days of the initial notice. The more complete information shall include sufficient information to advise the other party of the circumstances giving rise to the claim for relief, the specific contractual adjustment or relief requested and the basis of such request.

10.2 Dispute Avoidance and Resolution.

10.2.1 The parties are fully committed to working with each other throughout the Project and agree to communicate regularly with each other at all times so as to avoid or minimize disputes or disagreements. If disputes or disagreements do arise, Design-Builder and Owner each commit to resolving such disputes or disagreements in an amicable, professional and expeditious manner so as to avoid unnecessary losses, delays and disruptions to the Work.

10.2.2 Design-Builder and Owner will first attempt to resolve disputes or disagreements at the field level through discussions between Design-Builder’s Representative and Owner’s Representative which shall conclude within fourteen (14) days of the written notice provided for in Section 10.1.1 unless Owner and Design-Builder mutually agree otherwise.

10.2.3 If a dispute or disagreement cannot be resolved through Design-Builder’s Representative and Owner’s Representative, Design-Builder’s Senior Representative and Owner’s Senior Representative, upon the request of either party, shall meet as soon as conveniently possible, but in no case later than thirty (30) days after such a request is made, to attempt to resolve such dispute or disagreement. Five (5) days prior to any meetings between the Senior Representatives, the parties will exchange relevant information that will assist the parties in resolving their dispute or disagreement.

10.2.4 If after meeting the Senior Representatives determine that the dispute or disagreement cannot be resolved on terms satisfactory to both parties, the parties shall submit within thirty (30) days of the conclusion of the meeting of Senior Representatives the dispute or disagreement to non-binding mediation. The mediation shall be conducted by a mutually agreeable impartial mediator, or if the parties cannot so agree, a mediator designated by the American Arbitration Association (“AAA”) pursuant to its Construction Industry Mediation Rules. The mediation will be governed by and conducted pursuant to a mediation agreement negotiated by the parties or, if the parties cannot so agree, by procedures established by the mediator. Unless otherwise mutually agreed by Owner and Design-Builder and consistent with the mediator’s schedule, the mediation shall commence within ninety (90) days of the submission of the dispute to mediation.

Representatives of the parties with authority to resolve the dispute shall be present at any mediation.

10.3 California Public Contract Code Section 9204.

DRAFT 88
561
DBIA Document No. 535 Page 19
Standard Form of General Conditions of Contract Between Owner and Design-Builder © 2022 Design-Build Institute of America
Notwithstanding any other provision of the Contract Documents, any claim by Design-Builder that is subject to California Public Contract Code section 9204 shall be administered and resolved in accordance with the requirements of that statute. The parties acknowledge that the procedures established by Public Contract Code section 9204 are mandatory to the extent applicable and shall supplement the claims procedures set forth in the Contract Documents. Nothing contained herein shall be construed to waive, modify, or limit any rights or obligations established by Public Contract Code section 9204..

10.3.1 Unless expressly authorized in the Agreement and permitted by applicable California law, disputes not resolved pursuant to Section 10.2 shall be resolved in a court of competent jurisdiction located in the county in which the Project is located. If arbitration is expressly authorized by the Agreement, such arbitration shall be conducted in accordance with applicable California law.

10.3.2 Reserved.10.3.4 Each party shall bear its own attorneys' fees except to the extent otherwise provided by the Contract Documents or applicable law.

10.4 Duty to Continue Performance.

10.4.1 Unless provided to the contrary in the Contract Documents, Design-Builder shall continue to perform the Work and Owner shall continue to satisfy its payment obligations for undisputed amounts to Design-Builder as well as any further amounts pursuant to Section 9.4.3, pending the final resolution of any dispute or disagreement between Design-Builder and Owner.

10.5 CONSEQUENTIAL DAMAGES.

10.5.1 NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY (EXCEPT AS SET FORTH IN SECTION 10.5.2 BELOW), NEITHER DESIGN-BUILDER NOR OWNER SHALL BE

LIABLE TO THE OTHER FOR ANY CONSEQUENTIAL LOSSES OR DAMAGES, WHETHER

ARISING IN CONTRACT, WARRANTY, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY

OR OTHERWISE, INCLUDING BUT NOT LIMITED TO LOSSES OF USE, PROFITS, BUSINESS, REPUTATION OR FINANCING.

10.5.2 The consequential damages limitation set forth in Section 10.5.1 above is not intended to affect the payment of liquidated damages or lost early completion bonus, if any, set forth in Article 5 of the Agreement, which both parties recognize has been established, in part, to reimburse Owner or reward Design-Builder for some damages that might otherwise be deemed to be consequential.

Article 11
Stop Work and Termination

11.1 Owner’s Right to Stop Work.

11.1.1 Owner may, without cause and for its convenience, order Design-Builder in writing to stop and suspend the Work. Such suspension shall not exceed sixty (60) consecutive days or aggregate more than ninety (90) days during the duration of the Project.

11.1.2 Design-Builder may submit a Change Order Request or Claim pursuant to the Contract Documents seeking an adjustment of the Contract Price and/or Contract Time(s) if its cost or time to perform the Work has been adversely impacted by any suspension of stoppage of the Work by Owner. Any adjustment shall be determined in accordance with the Contract Documents and applicable California law.

DRAFT 89
562
DBIA Document No. 535 Page 20
Standard Form of General Conditions of Contract Between Owner and Design-Builder © 2022 Design-Build Institute of America

11.2 Owner’s Right to Perform and Terminate for Cause.

11.2.1 If Design-Builder persistently fails to (i) provide a sufficient number of skilled workers, (ii) supply the materials required by the Contract Documents, (iii) comply with applicable Legal Requirements, (iv) timely pay, without cause, Design Consultants or Subcontractors, (v) prosecute the Work with promptness and diligence to ensure that the Work is completed by the Contract Time(s), as such times may be adjusted, or (vi) perform material obligations under the Contract Documents, then Owner, in addition to any other rights and remedies provided in the Contract Documents or by law, shall have the rights set forth in Sections 11.2.2 and 11.2.3 below.

11.2.2 Upon the occurrence of an event set forth in Section 11.2.1 above, Owner may provide written notice to Design-Builder that it intends to terminate the Agreement unless the problem cited is cured, or commenced to be cured, within seven (7) days of Design-Builder’s receipt of such notice. If Design-Builder fails to cure, or reasonably commence to cure, such problem, then Owner may give a second written notice to Design-Builder of its intent to terminate within an additional seven (7) day period. If Design-Builder, within such second seven (7) day period, fails to cure, or reasonably commence to cure, such problem, then Owner may declare the Agreement terminated for default by providing written notice to Design-Builder of such declaration.

11.2.3 Upon declaring the Agreement terminated pursuant to Section 11.2.2 above, Owner may enter upon the premises and take possession, for the purpose of completing the Work, of all materials, equipment, scaffolds, tools, appliances and other items thereon, which have been purchased or provided for the performance of the Work, all of which Design-Builder hereby transfers, assigns and sets over to Owner for such purpose, and to employ any person or persons to complete the Work and provide all of the required labor, services, materials, equipment and other items. In the event of such termination, Design-Builder shall not be entitled to receive any further payments under the Contract Documents until the Work shall be finally completed in accordance with the Contract Documents. At such time, if the unpaid balance of the Contract Price exceeds the cost and expense incurred by Owner in completing the Work, such excess shall be paid by Owner to Design-Builder. Notwithstanding the preceding sentence, if the Agreement establishes a Guaranteed Maximum Price, Design-Builder will only be entitled to be paid for Work performed prior to its default. If Owner’s cost and expense of completing the Work exceeds the unpaid balance of the Contract Price, then Design-Builder shall be obligated to pay the difference to Owner. Such costs and expense shall include not only the cost of completing the Work, but also losses, damages, costs and expense, including attorneys’ fees and expenses, only to the extent recoverable under applicable California law or otherwise expressly authorized by the Contract Document, incurred by Owner in connection with the reprocurement and defense of claims arising from Design-Builder’s default, subject to the waiver of consequential damages set forth in Section 10.5 hereof.

11.2.4 If Owner improperly terminates the Agreement for cause, the termination for cause will be converted to a termination for convenience in accordance with the provisions of Section 11.6 hereof.

11.3 Design-Builder’s Right to Stop Work.

11.3.1 Design-Builder may, in addition to any other rights afforded under the Contract Documents or at law, stop the Work for the following reasons:

11.3.1.1 Owner’s failure to provide financial assurances as required under Section 3.3 hereof; or

11.3.1.2 Owner’s failure to pay amounts properly due under Design-Builder’s Application for Payment.

11.3.2 Should any of the events set forth in Section 11.3.1 above occur, Design-Builder has the right to provide Owner with written notice that Design-Builder will stop the Work unless said event is cured within seven (7) days from Owner’s receipt of Design-Builder’s notice. Design-Builder shall DRAFT 90
563
DBIA Document No. 535 Page 21
Standard Form of General Conditions of Contract Between Owner and Design-Builder © 2022 Design-Build Institute of America
not stop work unless it provides such written notice and Owner has failed to cure the reason for default within the seven (7) day cure period. If Owner does not cure the problem within such seven (7) day period, Design-Builder may stop the Work. In such case, Design-Builder shall be entitled to make a claim for adjustment to the Contract Price and Contract Time(s) to the extent it has been adversely impacted by such stoppage.

11.4 Design-Builder’s Right to Terminate for Cause.

11.4.1 Design-Builder, in addition to any other rights and remedies provided in the Contract Documents or by law, may terminate the Agreement for cause for the following reasons:

11.4.1.1 The Work has been stopped for sixty (60) consecutive days, or more than ninety (90) days during the duration of the Project, because of court order, any government authority having jurisdiction over the Work, or orders by Owner under Section 11.1.1 hereof, provided that such stoppages are not due to the acts or omissions of Design-Builder or anyone for whose acts Design-Builder may be responsible.

11.4.1.2 Owner’s failure to provide Design-Builder with any information, permits or approvals that are Owner’s responsibility under the Contract Documents which result in the Work being stopped for sixty (60) consecutive days, or more than ninety (90) days during the duration of the Project, even though Owner has not ordered Design-Builder in writing to stop and suspend the Work pursuant to Section 11.1.1 hereof.

11.4.1.3 Owner’s failure to cure the problems set forth in Section 11.3.1 above after Design-Builder has stopped the Work.

11.4.2 Upon the occurrence of an event set forth in Section 11.4.1 above, Design-Builder may provide written notice to Owner that it intends to terminate the Agreement unless the problem cited is cured, or commenced to be cured, within seven (7) days of Owner’s receipt of such notice. If Owner fails to cure, or reasonably commence to cure, such problem, then Design-Builder may give a second written notice to Owner of its intent to terminate within an additional seven (7) day period.

If Owner, within such second seven (7) day period, fails to cure, or reasonably commence to cure, such problem, then Design-Builder may declare the Agreement terminated for default by providing written notice to Owner of such declaration. In such case, Design-Builder shall be entitled to recover in the same manner as if Owner had terminated the Agreement for its convenience under Article 8 of the Agreement.

11.5 Bankruptcy of Owner or Design-Builder.

11.5.1 If either Owner or Design-Builder institutes or has instituted against it a case under the United States Bankruptcy Code (such party being referred to as the “Bankrupt Party”), such event may impair or frustrate the Bankrupt Party’s ability to perform its obligations under the Contract Documents. Accordingly, should such event occur:

11.5.1.1 The Bankrupt Party, its trustee or other successor, shall furnish, upon request of the non-Bankrupt Party, adequate assurance of the ability of the Bankrupt Party to perform all future material obligations under the Contract Documents, which assurances shall be provided within ten (10) days after receiving notice of the request; and

11.5.1.2 The Bankrupt Party shall file an appropriate action within the bankruptcy court to seek assumption or rejection of the Agreement within sixty (60) days of the institution of the bankruptcy filing and shall diligently prosecute such action.

If the Bankrupt Party fails to comply with its foregoing obligations, the non-Bankrupt Party shall be entitled to request the bankruptcy court to reject the Agreement, declare the Agreement terminated and pursue any other recourse available to the non-Bankrupt Party under this Article 11.

DRAFT 91
564
DBIA Document No. 535 Page 22
Standard Form of General Conditions of Contract Between Owner and Design-Builder © 2022 Design-Build Institute of America

11.5.2 The rights and remedies under Section 11.5.1 above shall not be deemed to limit the ability of the non-Bankrupt Party to seek any other rights and remedies provided by the Contract Documents or by law, including its ability to seek relief from any automatic stays under the United States Bankruptcy Code or the right of Design-Builder to stop Work under any applicable provision of these General Conditions of Contract.

11.6 Termination for Convenience.

11.6.1 Upon ten (10) days’ written notice to Design-Builder, Owner may, for its convenience and without cause, elect to terminate this Agreement. In such event, Owner shall pay Design-Builder for the following:

11.6.1.1 All Work executed and for proven loss, cost or expense in connection with the Work;

11.6.1.2 The reasonable costs and expenses attributable to such termination, including demobilization costs and amounts due in settlement of terminated contracts with Subcontractors and Design Consultants; and

11.6.1.3 The amount set forth in Article 8 of the Agreement. Compensation payable pursuant to this Section shall not include damages for anticipated profits on Work not performed except to the extent expressly provided in Article 8 of the Agreement.

11.6.2 If Owner terminates this Agreement pursuant to Section 11.6.1 above and proceeds to design and construct the Project through its employees, agents or third parties, Owner’s rights to use the Work Product shall be as set forth in Section 4.3 of the Agreement. Such rights may not be transferred or assigned to others without Design-Builder’s express written consent and such third parties’ agreement to the terms of Article 4 of the Agreement.

Article 12
Electronic Data

12.1 Electronic Data.

12.1.1 The parties recognize that Contract Documents, including drawings, specifications and three-dimensional modeling (such as Building Information Models) and other Work Product may be transmitted among Owner, Design-Builder and others in electronic media as an alternative to paper hard copies (collectively “Electronic Data”).

12.2 Transmission of Electronic Data.

12.2.1 Owner and Design-Builder shall agree upon the software and the format for the transmission of Electronic Data. Each party shall be responsible for securing the legal rights to access the agreed-upon format, including, if necessary, obtaining appropriately licensed copies of the applicable software or electronic program to display, interpret and/or generate the Electronic Data.

12.2.2 Neither party makes any representations or warranties to the other with respect to the functionality of the software or computer program associated with the electronic transmission of Work Product. Unless specifically set forth in the Agreement, ownership of the Electronic Data does not include ownership of the software or computer program with which it is associated, transmitted, DRAFT 92
565
DBIA Document No. 535 Page 23
Standard Form of General Conditions of Contract Between Owner and Design-Builder © 2022 Design-Build Institute of America
generated or interpreted.

12.2.3 By transmitting Work Product in electronic form, the transmitting party does not transfer or assign its rights in the Work Product. The rights in the Electronic Data shall be as set forth in Article 4 of the Agreement. Under no circumstances shall the transfer of ownership of Electronic Data be deemed to be a sale by the transmitting party of tangible goods.

12.3 Electronic Data Protocol.

12.3.1 The parties acknowledge that Electronic Data may be altered or corrupted, intentionally or otherwise, due to occurrences beyond their reasonable control or knowledge, including but not limited to compatibility issues with user software, manipulation by the recipient, errors in transcription or transmission, machine error, environmental factors, and operator error.

Consequently, the parties understand that there is some level of increased risk in the use of Electronic Data for the communication of design and construction information and, in consideration of this, agree, and shall require their independent contractors, Subcontractors and Design Consultants to agree, to the following protocols, terms and conditions set forth in this Section 12.3.

12.3.2 Electronic Data will be transmitted in the format agreed upon in Section 12.2.1 above, including file conventions and document properties, unless prior arrangements are made in advance in writing.

12.3.3 The Electronic Data represents the information at a particular point in time and is subject to change. Therefore, the parties shall agree upon protocols for notification by the author to the recipient of any changes which may thereafter be made to the Electronic Data, which protocol shall also address the duty, if any, to update such information, data or other information contained in the electronic media if such information changes prior to Final Completion of the Project.

12.3.4 The transmitting party specifically disclaims all warranties, expressed or implied, including, but not limited to, implied warranties of merchantability and fitness for a particular purpose, with respect to the media transmitting the Electronic Data. However, transmission of the Electronic Data via electronic means shall not invalidate or negate any duties pursuant to the applicable standard of care with respect to the creation of the Electronic Data, unless such data is materially changed or altered after it is transmitted to the receiving party, and the transmitting party did not participate in such change or alteration.

Article 13
Miscellaneous

13.1 Confidential Information.

13.1.1 Confidential Information is defined as information which is determined by the transmitting party to be of a confidential or proprietary nature and: (i) the transmitting party identifies as either confidential or proprietary; (ii) the transmitting party takes steps to maintain the confidential or proprietary nature of the information; and (iii) the document is not otherwise available in or considered to be in the public domain. The receiving party agrees to maintain the confidentiality of the Confidential Information and agrees to use the Confidential Information solely in connection with the Project.

13.1.2 Notwithstanding anything to the contrary contained in the Contract Documents, Owner is a public agency subject to the California Public Records Act (Government Code section 7920.000 et seq.). Design-Builder acknowledges that records submitted to Owner may constitute public records subject to disclosure unless exempt from disclosure under applicable law. Nothing contained in the Contract Documents shall require Owner to withhold records or information where disclosure is required by applicable law. If Design-Builder contends that any submitted DRAFT 93
566
DBIA Document No. 535 Page 24
Standard Form of General Conditions of Contract Between Owner and Design-Builder © 2022 Design-Build Institute of America
records are exempt from disclosure, Design-Builder shall clearly identify such records and the basis for the claimed exemption. Owner shall have no obligation to assert or defend any claimed exemption on behalf of Design-Builder.

13.2 Assignment.

13.2.1 Neither Design-Builder nor Owner shall, without the written consent of the other assign, transfer or sublet any portion or part of the Work or the obligations required by the Contract Documents.

13.3 Successorship.

13.3.1 Design-Builder and Owner intend that the provisions of the Contract Documents are binding upon the parties, their employees, agents, heirs, successors and assigns.

13.4 Governing Law.

13.4.1 The Agreement and all Contract Documents shall be governed by the laws of the State of California, without giving effect to its conflict of law principles.

13.5 Severability.

13.5.1 If any provision or any part of a provision of the Contract Documents shall be finally determined to be superseded, invalid, illegal, or otherwise unenforceable pursuant to any applicable Legal Requirements, such determination shall not impair or otherwise affect the validity, legality, or enforceability of the remaining provision or parts of the provision of the Contract Documents, which shall remain in full force and effect as if the unenforceable provision or part were deleted.

13.6 No Waiver.

13.6.1 The failure of either Design-Builder or Owner to insist, in any one or more instances, on the performance of any of the obligations required by the other under the Contract Documents shall not be construed as a waiver or relinquishment of such obligation or right with respect to future performance.

13.7 Headings.

13.7.1 The headings used in these General Conditions of Contract, or any other Contract Document, are for ease of reference only and shall not in any way be construed to limit or alter the meaning of any provision.

13.8 Notice.

13.8.1 Whenever the Contract Documents require that notice be provided to the other party, notice will be deemed to have been validly given (i) if delivered in person to the individual intended to receive such notice; (ii) four (4) days after being sent by registered or certified mail, postage prepaid to the address indicated in the Agreement; (iii) if transmitted by facsimile, by the time stated in a machine-generated confirmation that notice was received at the facsimile number of the intended recipient; or (iv) by electronic mail, upon transmission to the electronic mail address designated in the Agreement, provided the sender does not receive notice that the transmission was not successfully delivered.

13.9 Amendments.

13.9.1 The Contract Documents may not be changed, altered, or amended in any way except in writing signed by a duly authorized representative of each party.

DRAFT 94
567
DBIA Document No. 535 Page 25
Standard Form of General Conditions of Contract Between Owner and Design-Builder © 2022 Design-Build Institute of America

13.10 Compliance with California Public Contracting Laws.

The parties acknowledge that this Agreement is subject to all applicable provisions of the California Public Contract Code, Government Code, Labor Code, and other applicable state laws governing public works and public contracting. To the extent any provision of the Contract Documents conflicts with mandatory provisions of California law, the applicable California law shall control and the Contract Documents shall be interpreted and enforced to comply therewith.

DRAFT 95
568
DBIA Document No. 535 Page 26
Standard Form of General Conditions of Contract Between Owner and Design-Builder © 2022 Design-Build Institute of America
The license for use of this document expires 1 year from the date of purchase.

To renew your license, visit store.dbia.org.

Questions? We’re here to help.

Contact us
Design-Build Institute of America
1001 Pennsylvania Ave. NW, Suite 410
Washington, DC 20004
(202) 682-0110
DRAFT
[email protected]
96 569
PHASE 2 SUPPLEMENTAL CONDITIONS
Phase 2 Supplemental Condition
These Supplemental Conditions amend or supplement DBIA Document No. 535, Standard Form of General Conditions of Contract Between Owner and Design-Builder (Third Edition, 2022). All provisions that are not so amended or supplemented remain in full force and effect.

The terms used in these Supplemental Conditions have the meanings stated in the General Conditions. Additional terms defined in these Supplemental Conditions have the meaning indicated below, which are applicable to both the singular and plural thereof.

The address system used in these Supplementary Conditions is the same as the address system used in the General Conditions, with the prefix “SC-“ added thereto.

ARTICLE 5 – INSURANCE AND BONDS

5.1 Design-Builder’s Insurance Requirements.

SC- 5.1.4 Design-Builder shall provide the following Surety Bonds:

1. Performance bond

2. Payment bond
The Payment Bond and the Performance Bond shall be in a sum equal to the contract price. If the Performance Bond provides for a one-year warranty a separate Maintenance Bond is not necessary. If the Performance Bond does not so provide, or in the event the warranty period specified in the contract is for longer than one year, a Maintenance Bond equal to 10% of the contract price is required. Bonds shall be duly executed by a responsible corporate surety, authorized to issue such bonds in the State of California and secured through an authorized agent with an office in California.

SC- 5.4.3 FAITHFUL PERFORMANCE BOND
As a part of the execution of the Contract, the Design-Builder shall furnish a Bond of an admitted surety insurer to secure the Faithful Performance of the Work under the Contract, which Bond shall be in a sum of not less than one hundred percent (100%) of the total amount payable by the terms of the Contract. The required form of the Faithful Performance Bond is provided as Exhibit C of the agreement.

SC-5.4.4 PAYMENT BOND
As a part of the execution of the Contract, the Design-Builder shall furnish a Bond of an admitted surety insurer, in the sum of not less than one hundred percent (100%) of the total amount payable by the terms of the Contract, to secure the payment in full of all persons, companies, or corporations who perform labor upon or furnish materials, tools, or equipment to be used in the work under the Contract, in accordance with the provisions of Chapter 5, Title 3, Part 6, Division 4, commencing at Section 9550, of the DRAFT 97
570
California Civil Code, and any acts amendatory thereof, and shall by its terms inure to the benefit of all persons, companies, or corporations authorized under Section 9100 of the California Civil Code to assert a claim against a payment bond so as to give a right of action to that person or that person's assigns in an action to enforce the liability on the bond. The required form of the Payment Bond is provided as Exhibit C of the agreement.

SC-5.4.6 SURETY COMPANIES WAIVE RIGHT TO NOTIFICATION
The surety companies shall familiarize themselves with all of the conditions and provisions of the Contract, and they waive the right of special notification of any change or modification of the Contract or of extension of time or of decreased or increased work, or of the cancellation of the Contract, or of any other act of acts by the Owner or its authorized agents, under the terms of the Contract; and failure to so notify the sureties of changes shall in no way relieve the surety companies of their obligation under the Contract.

SC-5.4.7 WORKERS COMPENSATION STATEMENT
As part of the execution of the Contract, the Design-Builder shall furnish a signed statement certifying the Design-Builder is aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for worker’s compensation or to undertake self-insurance in accordance with the provisions of that code.

ARTICLE 13 – MISCELLANEOUS
SC-13.10 PUBLIC OUTREACH
Contractor will cooperate with the Public Outreach and Communications Consultant to provide accurate and up-to-date information for the project construction as follows:
1) Provide updated construction schedule to Communications Consultant at least 3 weeks in advance of construction activities requiring outreach. 2) Complete review and response to draft outreach materials within 2 business days.
3) Post, hang, mount and/or construct construction signage at designated construction staging areas. Ensure signage is maintained in good condition for duration of construction contract.
4) Copy, update and distribute outreach materials provided by the District in advance of construction activities as directed by the District as follows. a) Project Signage – In place at initiation of construction mobilization and prior to equipment or materials staging. Utilization and display of Project A-Frame signage at each end of the construction work zone within unobstructed view of pedestrian and automobile traffic.

DRAFT 98
571
b) Doorhangers – provided to property owners no later than 3 days prior to construction activities impacting property ingress/egress or with visual, noise, or dust/air particulate impacts to properties.
5) Direct its staff and subcontractors to utilize District Project Signage (A-Frames), Project Magnets, Project Website, and Project Email Address for any inquiries from the public.
6) Direct its staff and subcontractors to forward all press/media outlet inquiries to the District and Communications Consultant.
7) Alert District, Project Team and Communications Consultant within 2 hours to any escalated interactions with members of the public/property owners, interactions with press/media outlets, property damage or emergencies impacting project work.

DRAFT 99
572

OVERALL OPERATIONS BUDGET SUMMARY
(Includes: Administrative Services, Treatment, Environmental Compliance, and Infrastructure) FY 2024/25
ACTUAL
FY 2025/26

ADOPTED
FY 2025/26

PROJECTED
FY 26/27

PROPOSED

EXPENDITURES
Personnel
1 Wages 1,770,658                        1,786,300           1,799,105              1,906,100                119,800 7% 2 Premium Pay                166,455              144,100              142,859                  172,000 27,900 19% 3 Health Benefits                306,074              354,596              334,360                  400,750 46,154 13% 4 Retirement Cont.                762,068              541,000              544,707                  591,400 50,400 9% 5 Retiree Med/OPEB 36,364                 44,960                 42,713 62,850 17,890 40% 6 Misc. Benefits                103,703              110,856              102,986                  112,050 1,194 1% 7 Subtotal 3,145,322                        2,981,812           2,966,729              3,245,150                263,338 9% Non‐Personnel
8 Legal Services                237,120              235,000              173,818                  200,000                 (35,000) (15%) 9 Engineering Services                254,378              150,243              155,347                  160,800 10,557 7% 10 Professional Services                863,526              909,600           1,065,516                  965,625 56,025 6% 11 Prof. Memberships 88,269                 60,001                 75,269 76,200 16,199 27% 12 Insurance Premiums                236,925              249,982              255,390                  265,000 15,018 6% 13 Misc. Expenses                117,100                 86,566              122,960                  120,800 34,234 40% 14 Utilities                750,671              806,297              816,601                  839,300 33,003 4% 15 Travel & Training 51,386                 57,011                 57,396 64,400 7,389 13% 16 Equipment Rental 25,756                 27,875                 22,674 29,300 1,425 5% 17 Bldg & Maint Services                166,137              148,100              132,108                  176,000 27,900 19% 18 Chemicals                403,961              445,863              338,720                  470,000 24,137 5% 19 Permits & Licenses 60,014                 55,997                 59,283 62,100 6,103 11% 20 Supplies 96,304              120,178              124,058                  128,450 8,272 7% 21 Equipment 12,587                 12,741                 15,487                  417,000                404,259 3173% 22 Infrastructure (***)             3,389,937           3,645,000          4,024,505            12,750,000            9,105,000 250% 23 Claims/Penalties (**) ‐                  80,000                 70,000 85,000 5,000 6% 25 Subtotal 6,754,068                        7,090,454           7,509,133            16,809,975             9,719,521 137% 26 TOTAL            9,899,390        10,072,266        10,475,862           20,055,125            9,982,859 99%

REVENUE
By Type:
27 JPA Assessments             9,276,973           9,942,231           9,942,231            19,923,588             9,981,357 100% 28 NDWSCP Fees 61,609                 60,035                 50,639 53,037 (6,998) (12%) 31 Interest Earnings 81,566                 70,000                 83,210 78,500 8,500 12% 32 Misc. Revenue                387,448 ‐                  59,745 ‐  ‐  ‐ 34 REVENUE TOTAL            9,807,596        10,072,266        10,135,825           20,055,125            9,982,859 99% By Agency:
35 Half Moon Bay             5,642,255           5,989,200           5,989,200            12,189,251             6,200,051 104% 36 Granada CSD             1,766,336           1,873,116           1,873,116              3,628,085             1,754,969 94% 37 Montara WSD             1,868,383           2,079,915           2,079,915              4,106,251             2,026,336 97% 38 TOTAL            9,276,974          9,942,231          9,942,231           19,923,588            9,981,357 100%

VARIANCE
FY26/27 versus FY25/26
Over/(Under)

POTENTIAL MID-YEAR
BUDGET ADJ.
8/6/2026
100
573

ADMINISTRATIVE SERVICES
By Category
FY 2024/25
ACTUAL
FY 2025/26

ADOPTED
FY 2025/26

PROJECTED
FY 26/27

PROPOSED

EXPENDITURES
Personnel
1 Wages            666,317              629,300             634,063             661,100                 31,800 5% 2 Premium Pay              18,903                11,000               13,432               16,000                   5,000 45% 3 Health Benefits              87,403                88,985               71,871               79,500                  (9,485) (11%) 4 Retirement Cont.            340,271                93,000               54,354               57,700               (35,300) (38%) 5 Retiree Med/OPEB              28,400                13,500               17,509               28,100                 14,600 108% 6 Misc. Benefits              29,693                28,800               20,948               18,800               (10,000) (35%) 7 Subtotal 1,170,987                       864,585             812,177             861,200                  (3,385) (0%) Non‐Personnel
8 Legal Services            237,120              235,000             173,818             200,000                  (35,000) (15%) 9 Engineering Services              20,698                           ‐                          ‐                          ‐                            ‐ ‐ 10 Professional Services 220,751                          226,164             283,075             252,025                 25,861 11% 11 Prof. Memberships              77,201                46,515               61,210               62,000                 15,485 33% 12 Insurance Premiums 236,925                          249,982             255,390             265,000                 15,018 6% 13 Misc. Expenses              95,965                64,590               86,090               92,700                 28,110 44% 14 Utilities              27,621                34,250               21,653               22,300               (11,950) (35%) 15 Travel & Training                8,586                  5,335                 7,403                 6,600                   1,265 24% 16 Equipment Rental               8,294                 7,875                8,101                 8,300                      425 5% 17 Bldg & Maint Services 33,150                              34,131               46,200               47,000                 12,869 38% 18 Chemicals                         ‐                           ‐                          ‐                          ‐                            ‐ ‐ 19 Permits & Licenses                         ‐                           ‐                          ‐                          ‐                            ‐ ‐ 20 Supplies              10,738                12,844               16,936               13,600                      756 6% 21 Equipment                         ‐                  2,637                 5,087                 6,000                   3,363 128% 22 Infrastructure                         ‐                           ‐                          ‐                          ‐                            ‐ ‐ 23 Claims/Penalties                         ‐                10,000               10,000               10,000                            ‐ 0% 25 Subtotal 977,048                          929,322             974,963             985,525                 56,203 6% 26 TOTAL        2,148,035         1,793,907        1,787,140        1,846,725                52,818 3% FY 2024/25
ACTUAL
FY 2025/26

ADOPTED
FY 2025/26

PROJECTED
FY 26/27

PROPOSED

REVENUE
By Type:
27 JPA Assessments         1,839,212           1,723,907         1,723,907         1,768,225                 44,318 3% 28 Other Revenue                5,537                           ‐                          ‐                          ‐                            ‐ ‐ 31 Interest Earnings              81,566                70,000               83,210               78,500                   8,500 12% 32 Misc. Revenue ‐ Grant 387,448                                       ‐               59,745                          ‐                            ‐ ‐ 34 REVENUE TOTAL        2,313,762         1,793,907        1,866,862        1,846,725                52,818 3% By Agency:
35 Half Moon Bay         1,118,609           1,038,482         1,038,482         1,081,800                 43,318 4% 36 Granada CSD            350,186              324,784             324,784             321,994                  (2,790) (1%) 37 Montara WSD            370,417              360,641             360,641             364,431                   3,790 1% 38 TOTAL        1,839,212         1,723,907        1,723,907        1,768,225                44,318 3%

VARIANCE
FY26/27 versus FY25/26

VARIANCE
FY26/27 versus FY25/26
Over/(Under)

POTENTIAL MID-YEAR
BUDGET ADJ.
8/6/2026
101
574

TREATMENT
By Category
FY 2024/25
ACTUAL
FY 2025/26

ADOPTED
FY 2025/26

PROJECTED
FY 26/27

PROPOSED

EXPENDITURES
Personnel
1 Wages           1,061,123           1,114,500           1,121,792           1,200,000                  85,500 8% 2 Premium Pay              145,533              131,000              127,357              153,000                  22,000 17% 3 Health Benefits              211,797              257,600              255,723              312,800                  55,200 21% 4 Retirement Cont.              396,008              424,000              460,673              501,200                  77,200 18% 5 Retiree Med/OPEB                   7,897                30,785                24,543                34,000                    3,215 10% 6 Misc. Benefits                71,597                78,641                79,357                89,800                  11,159 14% 7 Subtotal 1,893,954                      2,036,526           2,069,445           2,290,800                254,274 12% Non‐Personnel
8 Legal Services                             ‐ ‐                             ‐                             ‐                             ‐                              ‐ 9 Engineering Services              233,680              150,243              155,347              160,800                  10,557 7% 10 Professional Services              555,548              579,127              667,594              601,600                  22,473 4% 11 Prof. Memberships                11,068                13,486                14,059                14,200                        714 5% 12 Insurance Premiums                            ‐                            ‐                            ‐                            ‐                             ‐ ‐ 13 Misc. Expenses                21,069                21,976                36,713                28,100                    6,124 28% 14 Utilities              723,050              772,047              794,948              817,000                  44,953 6% 15 Travel & Training                42,510                51,171                49,743                57,200                    6,029 12% 16 Equipment Rental                17,462                20,000               14,574               21,000                   1,000 5% 17 Bldg & Maint Services 132,987                            113,969                85,908              129,000                  15,031 13% 18 Chemicals              400,476              442,363              334,158              465,000                  22,637 5% 19 Permits & Licenses                60,014                55,997                59,283                62,100                    6,103 11% 20 Supplies                67,189                84,336                84,352                89,850                    5,514 7% 21 Equipment                10,361                10,104                10,400              411,000                400,896 3968% 22 Infrastructure                   1,311                            ‐              860,238                            ‐                             ‐ ‐ 23 Claims/Penalties                            ‐                70,000                60,000                75,000                    5,000 7% 25 Subtotal 2,276,725                      2,384,819           3,227,318           2,931,850                547,031 23% 26 TOTAL         4,170,680           4,421,345            5,296,763          5,222,650              801,305 18% FY 2024/25
ACTUAL
FY 2025/26

ADOPTED
FY 2025/26

PROJECTED
FY 26/27

PROPOSED

REVENUE
By Type:
27 JPA Assessments           4,185,865           4,361,311           4,361,311           5,169,613                808,302 19% 28 NDWSCP Fees                56,072                60,035                50,639                53,037                   (6,998) (12%) 31 Interest Earnings                            ‐                            ‐                            ‐                            ‐                             ‐ ‐ 32 Misc. Revenue                            ‐                            ‐                            ‐                            ‐                             ‐ ‐ 34 REVENUE TOTAL          4,241,937          4,421,346          4,411,950          5,222,650              801,304 18% By Agency:
35 Half Moon Bay           2,545,843           2,627,254           2,627,254           3,162,769                535,515 20% 36 Granada CSD              796,989              821,671              821,671              941,387                119,716 15% 37 Montara WSD              843,033              912,386              912,386           1,065,457                153,071 17% 38 TOTAL          4,185,865          4,361,311          4,361,311          5,169,613              808,302 19%

VARIANCE
FY26/27 versus FY25/26

VARIANCE
FY26/27 versus FY25/26
Over/(Under)

POTENTIAL MID-YEAR
BUDGET ADJ.
8/6/2026
102
575

ENVIRONMENTAL COMPLIANCE
By Category
FY 2024/25
ACTUAL
FY 2025/26

ADOPTED
FY 2025/26

PROJECTED
FY 26/27

PROPOSED

EXPENDITURES
Personnel
1 Wages                43,219               42,500               43,250              45,000                2,500 6% 2 Premium Pay                  2,019                 2,100                  2,070                3,000                   900 43% 3 Health Benefits                  6,875                 8,011                  6,766                8,450                   439 5% 4 Retirement Cont.                25,789               24,000               29,680              32,500                8,500 35% 5 Retiree Med/OPEB                        67                     675                     661                   750                      75 11% 6 Misc. Benefits                  2,413                 3,415                  2,680                3,450                      35 1% 7 Subtotal 80,380                               80,701               85,107              93,150              12,449 15% Non‐Personnel
8 Legal Services                            ‐ ‐                           ‐                           ‐                          ‐                          ‐ 9 Engineering Services                           ‐                          ‐                          ‐                         ‐                         ‐ ‐ 10 Professional Services                87,226             104,309             114,847           112,000                7,691 7% 11 Prof. Memberships                           ‐                          ‐                          ‐                         ‐                         ‐ ‐ 12 Insurance Premiums                           ‐                          ‐                          ‐                         ‐                         ‐ ‐ 13 Misc. Expenses                        66                          ‐                     157                         ‐                         ‐ ‐ 14 Utilities                           ‐                          ‐                          ‐                         ‐                         ‐ ‐ 15 Travel & Training                     290                     505                     250                   600                      95 19% 16 Equipment Rental                           ‐                          ‐                          ‐                         ‐                         ‐ ‐ 17 Bldg & Maint Services                           ‐                          ‐                          ‐                         ‐                         ‐ ‐ 18 Chemicals                 3,486                3,500                  4,562                5,000                1,500 43% 19 Permits & Licenses                           ‐                          ‐                          ‐                         ‐                         ‐ ‐ 20 Supplies                18,376               22,998               22,770              25,000                2,002 9% 21 Equipment                  2,226                          ‐                          ‐                         ‐                         ‐ ‐ 22 Infrastructure                           ‐                          ‐                          ‐                         ‐                         ‐ ‐ 23 Claims/Penalties                           ‐                          ‐                          ‐                         ‐                         ‐ ‐ 25 Subtotal 111,670                          131,312             142,586           142,600              11,288 9% 26 TOTAL            192,050            212,013            227,693          235,750            23,737 11% FY 2024/25
ACTUAL
FY 2025/26

ADOPTED
FY 2025/26

PROJECTED
FY 26/27

PROPOSED

REVENUE
By Type:
27 JPA Assessments             251,896             212,013             212,013           235,750              23,737 11% 28 NDWSCP Fees                           ‐                          ‐                          ‐                         ‐                         ‐ ‐ 31 Interest Earnings                           ‐                          ‐                          ‐                         ‐                         ‐ ‐ 32 Misc. Revenue                           ‐                          ‐                          ‐                         ‐                         ‐ ‐ 34 REVENUE TOTAL            251,896            212,013            212,013          235,750            23,737 11% By Agency:
35 Half Moon Bay             153,203             127,717             127,717           144,232              16,515 13% 36 Granada CSD                47,961               39,943               39,943              42,930                2,987 7% 37 Montara WSD                50,732               44,353               44,353              48,588                4,235 10% 38 TOTAL            251,896            212,013            212,013          235,750            23,737 11%

VARIANCE
FY26/27 versus FY25/26

VARIANCE
FY26/27 versus FY25/26
Over/(Under)

POTENTIAL MID-YEAR
BUDGET ADJ.
8/6/2026
103
576

INFRASTRUCTURE
By Category
FY 2024/25
ACTUAL
FY 2025/26

ADOPTED
FY 2025/26

PROJECTED
FY 26/27

PROPOSED

EXPENDITURES
Personnel
1 Wages ‐  ‐  ‐  ‐  ‐  ‐
2 Premium Pay ‐  ‐  ‐  ‐  ‐  ‐
3 Health Benefits ‐  ‐  ‐  ‐  ‐  ‐
4 Retirement Cont. ‐  ‐  ‐  ‐  ‐  ‐
5 Retiree Med/OPEB ‐  ‐  ‐  ‐  ‐  ‐
6 Misc. Benefits ‐  ‐  ‐  ‐  ‐  ‐
7 Subtotal ‐  ‐  ‐  ‐  ‐  ‐
Non‐Personnel ‐  ‐  ‐  ‐
8 Legal Services ‐  ‐  ‐  ‐  ‐  ‐
9 Engineering Services ‐  ‐  ‐  ‐  ‐  ‐
10 Professional Services ‐  ‐  ‐  ‐  ‐  ‐
11 Prof. Memberships ‐  ‐  ‐  ‐  ‐  ‐
12 Insurance Premiums ‐  ‐  ‐  ‐  ‐  ‐
13 Misc. Expenses ‐  ‐  ‐  ‐  ‐  ‐
14 Utilities ‐  ‐  ‐  ‐  ‐  ‐
15 Travel & Training ‐  ‐  ‐  ‐  ‐  ‐
16 Equipment Rental ‐  ‐  ‐  ‐  ‐  ‐
17 Bldg & Maint Services ‐ ‐  ‐  ‐   ‐ ‐
18 Chemicals ‐  ‐  ‐  ‐  ‐  ‐
19 Permits & Licenses ‐  ‐  ‐  ‐  ‐  ‐
20 Supplies ‐  ‐  ‐  ‐  ‐  ‐
21 Equipment ‐  ‐  ‐  ‐  ‐  ‐
22 Infrastructure (A)         3,388,625          3,645,000          3,164,267        12,750,000           9,105,000 250% 23 Claims/Penalties ‐  ‐  ‐  ‐  ‐  ‐
25 Subtotal 3,388,625                   3,645,000          3,164,267        12,750,000           9,105,000 250% 26 TOTAL         3,388,625          3,645,000          3,164,267       12,750,000           9,105,000 250% FY 2024/25
ACTUAL
FY 2025/26

ADOPTED
FY 2025/26

PROJECTED
FY 26/27

PROPOSED

REVENUE
By Type:
27 JPA Assessments         3,000,000          3,645,000          3,645,000        12,750,000           9,105,000 250% 28 NDWSCP Fees ‐  ‐  ‐  ‐  ‐  ‐
31 Interest Earnings ‐  ‐  ‐  ‐  ‐  ‐
32 Misc. Revenue ‐  ‐  ‐  ‐  ‐  ‐
34 REVENUE TOTAL         3,000,000          3,645,000          3,645,000       12,750,000           9,105,000 250% By Agency:
35 Half Moon Bay         1,824,600          2,195,748          2,195,748          7,800,450           5,604,702 255% 36 Granada CSD            571,200              686,718              686,718          2,321,775           1,635,057 238% 37 Montara WSD            604,200              762,534              762,534          2,627,775           1,865,241 245% 38 TOTAL         3,000,000          3,645,000          3,645,000       12,750,000           9,105,000 250% (A) Breakdown is as follows:
$3,650,000 Sewer Force Main in Montara; $450,000 Effluent Pumps; $100,000 Montara Pump Station, Pump #1; $50,000 Portola Pump Station, Pump #1; $8,500,000 Mid-Year Budget Adjustment.

VARIANCE
FY26/27 versus FY25/26

VARIANCE
FY26/27 versus FY25/26
Over/(Under)

POTENTIAL MID-YEAR
BUDGET ADJ.
8/6/2026
104
577
August 12, 2026
Greetings City Council Members,
I write in anticipation of the Council reviewing the City Council Rules of Procedure and Decorum document, which I will refer to as Rules. I had previously written asking about written communications to the Council. My message was forwarded to the City Attorney, who indicated that the Rules may be reviewed and updated in the near future, possibly as soon as this month. If that is the case, please add this letter to the written comments for the appropriate agenda item.

I would like to propose the following modifications or additions regarding written public comment for City Council Agenda items. I acknowledge that since I’m relatively new to the City of Half Moon Bay (as of the January 2025), it’s possible that some of these things are already done, so bear with me.

The current Rules states that members of the public are encouraged to submit written comments before council meetings. It also states that the deadline for the receipt of written communications for inclusion in an Agenda packet is 5:00 p.m. the Wednesday before a Council meeting. The Rules further state that City policy is to complete and distribute the Agenda by the preceding Friday of a Council meeting. This poses a problem for members of the public who wish to provide written comment on Agenda items because they don’t know what the Agenda items are by the Wednesday deadline for written communications.

Of course, this doesn’t prevent members of the public from submitting written comment after the Agenda has been published, but my understanding is that such comments won’t be included in an amended Agenda. Therefore, I suggest the following additions to City Council procedures:
• Public comment received by the Wednesday before a Council meeting will be included in the initial Agenda packet, published by Friday. (I believe this is already being done.) Such public comment will be identified per Agenda item as a link to the relevant document in the Agenda packet.
• Additional written comment received after Wednesday will be published in amended Agendas.

This would include all written comment received until a reason cutoff time. In the previous city in which I lived (Saratoga, California), the cutoff was noon on the day of a Council meeting. If any public comment was received by the cutoff (and after the Agenda was initially published), then the Agenda would be amended and published on the City’s website before the Council meeting.

In cases involving controversial Agenda items, the Agenda could be amended more than once:

E.g., on Monday to included public comment received by then, and on Tuesday to include any additional public comment received.

I realize that publishing an amended Agenda including written public comment poses an additional burden on City staff, but I strongly believe that the value of transparency is worth the 578
additional effort. I know that in the case of Saratoga, there was some pushback from staff when this was proposed, but once it was implemented, it quickly became expected by the public and de rigueur. It became an important method for the public to communicate with City Council and other members of the public on Agenda items.
• Written public comment on Agenda items should be identified as a separate appendix or supplement for the associated Agenda item, with a link to the comments document for online viewing. I believe this is already done for written comment received by the Wednesday deadline, but the same should apply for written comment received after Wednesday. An example of this type of appendix is in Agenda Item 5.A of the August 5, 2026, Planning Commission Agenda. • If an Agenda is amended to include public comment for an Agenda item multiple times, then it should be shown as multiple appendices or supplements, one for each time public comment was added to the Agenda.
• If an Agenda is amended to include public comment, then the Agenda will indicate at the top that it is amended and will state the nature of the amendment (e.g., “August 6, 2026—Added written public comment to Agenda item x”). This may already be done for amended Agendas. • Separately from the above, I would like to see a public comment form accessible from the City Council page of the City’s website. The Council page would have something like “Send a message to all City Council Member,” which when clicked would bring up a form in which you would specify your name, email address, subject, and comments. Comments submitted this way would be automatically distributed to all Council members by email, as well as to the City Clerk for inclusion in Agendas, if appropriate.
• Lastly, the same amended Agenda process should be applied to any written materials received after the Wednesday deadline for the initial Agenda packet. This includes all staff presentations for Agenda items, for instance. This means that such presentations need to be completed by noon of the day of a Council meeting, which seems reasonable for providing the public (and Council members!) the opportunity to review such material before Council meetings. Again, this may already be done.

Thank you for your consideration.

Curt Bianchi
579
I Support the Church
From: mark massara [email protected]
To: Bridget Jett
Fri 8/7/2026 10:04 AM
Dear City,
Please add me to the list of those who oppose the Cycle 6 Housing Element / LCP Implementation Plan and Revised Zoning Map.

Among other things I support the Church and don’t appreciate the City attempting to use Church property to provide housing. That is a sham designed to fake compliance with housing laws with everyone knowing full well the housing will never be realized.

Instead, the City should be analyzing and including real housing opportunities, and the many open undeveloped areas throughout the City that are excellent areas for future development, including increasing density in the partially developed Pacific Ridge project, the Podesta fields, Beachwood, and the Surf Beach and Dunes tracts.

The continued legacy of numerous ill conceived PUDs throughout the City is the primary reason the City is in violation of state housing laws, not a lack of available space. In other words, the continued non-compliance is willful and deliberate. Using fake development goals like Church properties is shameful, and should be stricken asap. The only way to positively impact the housing crises is to actually build more housing, not simply talk about it or carry on like building a few units downtown is going to make a difference.

Thank you,
Mark Massara
[email protected]
65 Ventura St.

HMB CA
580
581

582
583
584
From: James Benjamin
Subject: FW: Public comment on agenda Items 11.C, 9.G, and 11.B on the 18 August 2026 meeting of the City Council Date: August 14, 2026 at 1:55PM
To: Maggie Rodriguez [email protected]
[CAUTION]: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.

Hi Maggie,
For the public record.

Jimmy
From: James Benjamin
Sent: Friday, August 14, 2026 1:53 PM
To: 'Debbie Ruddock' <[email protected]>; '[email protected]' <[email protected]>; 'Paul Nagengast' <[email protected]>; '[email protected]' <[email protected]>;
'[email protected]' <[email protected]>
Cc: 'Matthew Chidester' <[email protected]>; 'Dale Leda' <[email protected]> Subject: Public comment on agenda Items 11.C, 9.G, and 11.B on the 18 August 2026 meeting of the City Council
Avenue
Half Moon Bay, CA 94019
The Honorable Deborah Ruddock and Council Members
The City of Half Moon Bay
501 Main Street
Half Moon Bay, CA 94019
14 August 2026
Dear Mayor Ruddock and Members of the City Council:

Because I hope to be out of state next week, please accept the following written public comment on three items from your 18 August 2026 City Council agenda.

1. Item 11.C Highway 1 – North (CIP Project No. 538) Design Amendment No. 8 The agenda report describes supplementary work performed by a consultant including additional planning for drainage and stormwater quality. The agenda report notes the requested Council acceptance of amendment 8 does not change the presently approved scope of work. Attachment 2 to the report provides an estimate for utility certification, and encroachment permitting services.

As you may recall, a contractor for the former owner of the Beachwood/Glencree parcels (now owned by the City) installed an unpermitted below-grade culvert system that receives surface flow and exfiltrates subsurface flows from that property. This diminishes the property’s wetlands, prevents subsurface flows from traveling west to nourish wetlands between Highway 1 and Pilarcitos Creek, and injects additional flashy flows into the abrading Kehoe Watercourse This contributes to erosion 585
flashy flows into the abrading Kehoe Watercourse. This contributes to erosion, sedimentation and the risk of overtopping of the berm protecting the SAM Plant.

I have discussed these issues with council members and staff, and included this matter in written comments on a west-of-SR 1 BRE dated Jun 26, 2023, and more recently in a September 15, 2025 letter (attached) concerning the Highway 1 – North project. As you can see from the following email exchange with Community Development Director Lacko, it is also in the record of public comment for revision of the Safety Element.

I suggested the inclusion of a pipe transit SR 1 for excessive accumulation of water (i.e., threatening to exceed the capacity of the swale after accounting for absorption and evapotranspiration) on the east side of Highway 1. Flows arriving on the west side of SR 1 would nourish degraded wetlands and reach expanded stormwater detention / retention / wetlands, gradually reaching Pilarcitos Creek as subsurface flows.

Please share with the public precisely what revisions to the Highway 1 – North project are proposed with respect to drainage, water quality, encroachment and permitting. In the bad old days, such a proposed revisions could be an effort to paper over unpermitted work that violates coastal resource protection or hazard avoidance policies in the LCP. If that were the case I am sure you would withhold any support until this aspect of the project were revised to comply with the LCLUP.

Perhaps the project now incorporates a capped pipe transiting SR 1 north of the Kehoe Watercourse (exclusively) for the watershed restoration project when plans become clear. If not, could the scope be efficiently revised to incorporate it? Also, is the “amendment 9” on page 2 of the Mark Thomas letter a typo error that should read “amendment 8”? If not, what is amendment 9?

2. Item 9.G Authorization to apply for California Infrastructure and economic development bank financing
Of course grants and planned CIP expenditures are preferable, but I support the staff recommendation, as it seems like an appropriate facility for financing several projects the City may be compelled to pay for but cannot afford.

3. Item 11.B Consideration of Amendments to City Council Rules of Procedure and Decorum
I sympathize with the challenge of considering and responding to late comments; I would just ask that you consider the perspective of members of the public trying to respond constructively to an agenda report containing ambiguities or simplifications that must be resolved before a meaningful response can be prepared.

If the agenda report (such as this week’s) is published Thursday night before a Tuesday meeting, and City Hall is closed on Friday, then the public’s earliest chance to obtain clarity from staff is the day before the Council meeting – if staff can respond that day. After receiving clarification, a complex yet constructive comment may take more than one day to research and draft. But that comment is likely to be discounted as “after 2 p.m. on the day of the meeting” and relegated to more perfunctory consideration.

586
If the agenda reports were published, say, ten days before the meeting, the public would have sufficient time to prepare careful responses to the City well ahead of scheduled meetings. I am not suggesting that staff work harder to get the reports out; I am suggesting that the schedule for public consideration allow enough time for thought-integrated responses from the public. This would more equitably share staff and public responsibility, encouraging public participation and ensuring careful consideration of both agenda reports and public responses. I hope you will consider that change.

I appreciate your consideration of my comments, and look forward to your response.

Respectfully,
Jimmy Benjamin
From: Leslie Lacko <[email protected]>
Sent: Thursday, November 20, 2025 4:03 PM
To: James Benjamin
Cc: Robert Brownstone <[email protected]>; Matthew Chidester <[email protected]>
Subject: RE: Follow up on safety element commitment
Thank you Jimmy. Your comments have been entered into the record.

Leslie Lacko
Community Development Director
501 Main Street, Half Moon Bay, CA 94019
(650) 825-4933
www.halfmoonbay.gov
Note the new website and email address
From: James Benjamin
Sent: Thursday, November 20, 2025 9:51 AM
To: Leslie Lacko <[email protected]>
Cc: Robert Brownstone <[email protected]>; Matthew Chidester <[email protected]>
Subject: Follow up on safety element commitment
[CAUTION]: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.

Hi Leslie,
I’m glad you found the earlier note worth considering. As promised, attached is the twopage comment letter I sent the City to encourage study the watershed in the context of Hwy. 1 maintenance, but it lays out several watershed related hazards as I currently understand them, including the impoundments, the water diverted from other watersheds and entrained into a highly erodible watercourse. I tried to distill the information into two exhibits. Over ten years ago the RWQCB staff expressed interest in helping the City address the hazards in this watershed – I have attached a copy of Dr. A. L. Riley’s followup to a tour that she and a colleague took of the watercourse 587
588
p , g y
“Safety and sustainability are not at odds; they are two sides of the same coin! “We have briefly discussed the importance of more localized warning systems. For prevention evacuation gridlock. I would have commented on that as well.

Thank you!”
Councilmember Jonsson replied later that night that he raised these concerns, he showed the speaker my text, and gave him my email address and noted that evacuation had been a big topic. He also said that there had been a discussion about fire breaks that back up to riparian habitat.

I responded:
“I have seen some people very familiar with the fire safety rules who seem to have little awareness of the attention our LCP pays to this subject. As the aftermath of the City’s unpermitted 2009 project shows, vegetation is vital to bank stability. I will be interested in what was said.”
I described the hazard of three impoundments in a 4-page letter to the City Council about the State Route 1 rehabilitation project. The letter was specific to the project area, but there may well be other impoundments that present a water detention opportunity if well managed, or a hazard if they are ignored. In addition, the letter pointed out the hazard of inundation of the SAM Plant, which is adjacent to my home, but would be catatstrophic for the entire midcoast. I believe I provided a copies to staff, but tomorrow I will find it and forward it to you.

You mentioned a USGS map that does not map powerful disticntions between degrees if liquefaction hazard in Half Moon Bay, First, the geologic units have not changed, and so planners may want to have a look at the more detailed maps which make these distictions.

Second. even moderately liquefiable soils present a high risk of erosion in the presence of entrained flows and limited vegetation — and that is as true on Pullman, Seymour just as it is on the Kehoe Watercourse; if trees are removed from our major riparian corridors (Arroyo Leon, Pilarcitos Creek and Frenchmans Creek), it is very likely to initiate an unraveling, not unlike the tiles of the ill-fated Space Shuttle Columbia after it lost a heat-resistant tile and disintegrated during atmostpheric reentry. We all know enough about stream morphology to avoid these kind of mistakes.

Matthew mentioned that the county has a localized warning system, but to ther county, “localized” may mean a warning to the entire coast, or the City of Half Moon Bay, and might not make critical distinctions about who needs to evacuate, say from a a fire, or a debris flow, or a dam failure or a tsunami; when the sirens go off and the emails go out , it seems looks like everyone in town gets it. Why should my neighbors and I clog a road that downtown.

I was surprised by your post-meeting observation that the planning process is not just for my benefit. The story of the removal of trees in a riparian area causing bank retreat and subsequently aggravating fire risk is a cautionary tale, and I have spent quite a bit of time with neighbors in other watersheds helping them understand their hydrology and geomorphology issues. My willingness to participate as a member of the public, alone if need be, does not make this for my benefit. If it seems otherwise to you, my invitation

589
590
From: Nicolette
Subject: Housing Element OLP
Date: August 17, 2026 at 12:13PM
To: [email protected]
Cc: [email protected], [email protected], [email protected], [email protected], [email protected]
You don't often get email from [email protected]. Learn why this is important [CAUTION]: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. 08/17/2026
Dear Mayor Ruddock and Councilmembers,
I am writing regarding tomorrow night's vote on the Housing Element rezoning and by-right amendments and, specifically, the continued inclusion of the Our Lady of the Pillar property as a housing opportunity site. Unfortunately, I am unable to attend tomorrow night's meeting, so I am submitting my comments and questions by email for the Council's consideration and inclusion in the public record.

I received the information distributed by Our Lady of the Pillar this weekend and have been reviewing the City's Housing Element documents as well. Before the Council takes final action, I would appreciate clarification on three points:

1. What exactly is the Council voting to change regarding the Our Lady of the Pillar property? Please identify the specific parcel and explain what zoning, overlay, or land-use designation applies to the property now and what, if anything, changes as a result of tomorrow night's vote.

2. The church's information states that the Planning Commission's position was that the OLP site could be removed from the Housing Element and replaced with other sites within six months. When and where did the Planning Commission make this recommendation or statement? Please identify the meeting, minutes, staff report, or other public record documenting it.

3. If the OLP property remains in the Housing Element, what does that designation actually mean for the property owner? Specifically, does the designation give the City any authority to require, acquire, or otherwise pursue housing development on the property if the owner does not wish to sell or develop it for housing? I understand that the City is under state housing requirements and that the Council is working under a deadline. I also understand that the City does not own the OLP property. That is precisely why I believe the public deserves a clear explanation of what retaining this particular site accomplishes and why it is necessary when the church has stated that the property is intended for the future expansion of Our Lady of the Pillar Academy.

I respectfully ask that these questions and my comments be provided to the Council for tomorrow night's meeting and included in the public record.

Thank you,
Nicolette Martin
HMB Resident
591
I Support the Church
From: mark massara
To: Bridget Jett
Fri 8/7/2026 10:04 AM
Dear City,
Please add me to the list of those who oppose the Cycle 6 Housing Element / LCP Implementation Plan and Revised Zoning Map.

Among other things I support the Church and don’t appreciate the City attempting to use Church property to provide housing. That is a sham designed to fake compliance with housing laws with everyone knowing full well the housing will never be realized.

Instead, the City should be analyzing and including real housing opportunities, and the many open undeveloped areas throughout the City that are excellent areas for future development, including increasing density in the partially developed Pacific Ridge project, the Podesta fields, Beachwood, and the Surf Beach and Dunes tracts.

The continued legacy of numerous ill conceived PUDs throughout the City is the primary reason the City is in violation of state housing laws, not a lack of available space. In other words, the continued non-compliance is willful and deliberate. Using fake development goals like Church properties is shameful, and should be stricken asap. The only way to positively impact the housing crises is to actually build more housing, not simply talk about it or carry on like building a few units downtown is going to make a difference.

Thank you,
Mark Massara

HMB CA
592
593

594
595
596

HAZEL JOANES
August 18, 2026
Mayor Debbie Ruddock and Members of the City Council
City of Half Moon Bay
501 Main Street
Half Moon Bay, CA 94019
Re: Objection to Staff Recommendation – Sixth Cycle Housing Element Municipal Code and Implementation Plan Amendments
Dear Mayor Ruddock and Councilmembers:

After reviewing the August 18 staff report, Planning Commission Resolution P-26-15, and the revised ordinance, I object to the staff recommendation that the Council introduce the ordinance in its present form.

My objection rests primarily on three issues.

First, 300 Church Street should not be included simply to obtain certification if HCD does not specifically require that parcel. The Planning Commission has already recommended that the City consider replacing it after certification. If another site may be appropriate later, the Council should determine whether that alternative can be considered now.

Second, the August 18 ordinance makes the consequences of Program 1-10 much clearer than the materials previously presented during the Housing Element process. Qualifying projects will be ministerial, will not require a public hearing, will not be decided by the Planning Commission, and an approval cannot be appealed. The Council should state whether it fully understood those consequences when it adopted the Housing Element.

Third, the staff report now acknowledges that the comprehensive Implementation Plan update was only “recently initiated,” even though the LUP was certified in 2021. The Council should require an explanation for why implementation was allowed to remain incomplete for more than five years and why substantial work is now being deferred until December 2027.

There are also multiple inconsistencies in the legislative record that should be corrected before the ordinance is introduced.

The City may be under considerable pressure from HCD and the pending State litigation, but urgency does not relieve the Council of its responsibility to understand what the State actually requires, what choices the City has made, and what discretion remains. 597

HAZEL JOANES

1. If HCD does not specifically require 300 Church Street, remove it now The Planning Commission has now recommended that, after the Housing Element is certified, staff return with an additional site or sites to offset the Housing Element unit requirements assigned to 300 Church Street and seek a Housing Element amendment.

The August 18 staff report repeats that recommendation.

Yet the ordinance before the Council still places 300 Block Church Street within both the Higher Density Workforce Housing program and the by-right housing program.

That leaves the Council with a very direct question:

If the Planning Commission already believes this site should be reconsidered, why approve it now only to attempt to replace it after certification? If HCD has specifically required 300 Church Street itself, staff should provide the Council and public with the written HCD communication establishing that requirement.

If HCD is instead requiring sufficient housing capacity, and the City retains the ability to substitute an appropriate site, then I urge the Council to exercise that discretion now.

If HCD does not specifically require this parcel, remove 300 Church Street from the ordinance and direct staff to identify an appropriate replacement before final adoption.

The Council should not knowingly approve a parcel today while simultaneously accepting a recommendation to reconsider that same parcel tomorrow.

There is also an unresolved question about what property the ordinance is actually implementing.

The LUP language quoted in the ordinance refers to “up to 40 units at the 515 Kelly Avenue Catholic Church,” while the operative ordinance applies a 45 dwelling-unit-per-acre overlay to 300 Block Church Street, APN 056-150-020.

Before voting, the Council should know whether these descriptions refer to the same parcel, different portions of the same property, or a later Housing Element decision that differs from what the LUP originally contemplated.

2. Did the Council fully understand Program 1-10 when it adopted the Housing Element?
The August 18 ordinance now makes the practical consequences of Program 1-10 unmistakable.

The Planning Commission resolution states that language was added to incorporate the statutory definition of the “by-right” process under Government Code section 65583.2(h)(2)(i).

The ordinance now expressly states that qualifying projects receive “by-right or ministerial approval (without discretionary action).”
598

HAZEL JOANES
For a qualifying project:
• the Community Development Director, not the Planning Commission, makes the approval decision;
• no public hearing is required;
• review is ministerial rather than discretionary;
• an approval cannot be appealed; and
• no hearing is required for the associated Local Coastal Development Permit under this chapter.

These are not minor procedural details. They materially change the City's normal land-use review process.

So I ask each Councilmember directly:

When you adopted the Housing Element in November 2025, did you fully understand that Program 1-10 carried these consequences?
If the answer is yes, please identify where the materials presented to you clearly explained that qualifying projects would proceed without Planning Commission approval, without a public hearing, and without an appeal of an approval.

If the answer is no, then the Council should ask why it was asked to adopt Program 1-10 without those consequences being explained plainly.

State law may require by-right processing under specified circumstances. That is not the issue.

The issue is whether the City's elected decision-makers understood the practical effect of what they were voting to adopt.

The August 18 ordinance makes those consequences clear now. The Council should determine whether they were equally clear when the Housing Element was adopted.

3. Why was the Implementation Plan not implemented earlier? The August 18 staff report contains a significant new admission.

Staff now states that the City is addressing Programs 1-1 and 1-10 only “to the extent that is required for HCD to find the Housing Element in substantial compliance,” and that the broader Implementation Plan update was “recently initiated.” The report further states that additional Implementation Plan work will be addressed through a comprehensive update scheduled for completion in December 2027. 599

HAZEL JOANES
The LUP, however, was certified by the Coastal Commission in April 2021. The staff report itself explains that Appendix A identified changes necessary to bring the Municipal Code and Implementation Plan into conformity with that LUP.

That leads to a question the Council should insist on having answered:

Why did implementation of the City's own certified LUP remain incomplete for more than five years?
Why was the comprehensive IP update not initiated promptly after certification? Why was it not advanced concurrently with the Housing Element? When were the City Manager and Council informed that the unfinished zoning and IP work would prevent HCD from finding the Housing Element substantially compliant? And why is substantial work now being deferred until December 2027? The City is being asked to act urgently today because work that could have been undertaken earlier remains unfinished.

That history matters. The Council should understand why the work was delayed, how it was tracked, when the problem was elevated to elected officials, and what safeguards will prevent the same situation from recurring.

Before accepting the staff recommendation, the Council should require that explanation.

4. The legislative record is not yet internally consistent The documents before the Council contain several unresolved inconsistencies:
• Resolution number: The Planning Commission attachment is titled Resolution P-26-15, but its operative paragraph states that the Commission approves “Resolution No. PDP26-47.” - Stone Pine Road APN: Chapter 18.43 identifies 830 Stone Pine Road as APN 056-590-010, while Chapter 18.44 identifies the same property as APN 056-260-180. - Staff report versus ordinance: The staff report now uses 056-590-010 in both Stone Pine tables, but the ordinance has not been corrected accordingly. - Statutory citation:

The staff report cites Government Code section 65582.2(c)(3)(B)(iii) for the 20-unitper-acre requirement, while the remaining documents rely on section 65583.2. • HCD chronology: The resolution and ordinance list meetings on “January 16, January 29, May 19, April 10, and June 10,” placing May 19 before April 10, while the staff report's narrative does not identify the May 19 meeting. - Wrong decision-making body: The conclusion of the August 18 City Council staff report still recommends that the Planning Commission approve a resolution recommending City Council adoption. 600

HAZEL JOANES
Any one of these could be dismissed as clerical.

Taken together, however, they show that the legislative package has not been fully reconciled.

The Council is being asked to adopt an ordinance affecting parcel-specific zoning, ministerial development rights, hearings, appeals, and the City's Local Coastal Program. Staff and legal counsel should review the entire package for consistency before the Council introduces it, rather than correcting individual errors only as they are identified by members of the public.

5. Appendix A also remains unexplained
The August 18 staff report reproduces an Appendix A entry identifying 900, 926, and 940 Main Street, together with both sides of Poplar Street, for Residential–High Density land use with anticipated R-3 zoning.

Yet the proposed rezoning includes 940 Main Street and the Poplar Street parcels while omitting 900 and 926 Main Street.

If there is a legal or planning reason for that distinction, explain it.

The City should not rely on Appendix A as support for the ordinance without explaining why only part of the cited entry is being implemented.

What I am asking the Council to do
Before introducing this ordinance, I respectfully ask the Council to take three actions.

First, determine what HCD actually requires. If HCD specifically requires 300 Church Street, place that documentation in the record. If HCD does not require that parcel, remove it and address the Planning Commission's recommendation now rather than after certification.

Second, address Program 1-10 directly. State whether the Council fully understood the loss of discretionary Planning Commission review, public hearings, and appeals of approvals when it adopted the Housing Element. If those consequences were clearly disclosed, identify where. If they were not, explain why.

Third, require staff and legal counsel to reconcile the legislative record before introduction.

Correct the parcel information, resolution references, statutory citations, chronology, and other inconsistencies, and explain why implementation of the 2021 LUP remained incomplete until now.

The City may be required to move quickly. But compliance with State law does not require the Council to surrender independent judgment or adopt an internally inconsistent ordinance.
601

HAZEL JOANES
Before voting, the Council should be able to answer four straightforward questions:

What does HCD actually require?
What has the City chosen?
What discretion remains?
Why was this work not completed earlier?
Until those questions are answered and the legislative record is corrected, I respectfully object to the staff recommendation to introduce the ordinance in its present form.

Respectfully,
Hazel Joanes
Half Moon Bay Resident
602
From: James Benjamin m
Subject: FW: Public comment on agenda Items 11.C, 9.G, and 11.B on the 18 August 2026 meeting of the City Council Date: August 14, 2026 at 1:55PM
To: Maggie Rodriguez [email protected]
[CAUTION]: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.

Hi Maggie,
For the public record.

Jimmy
From: James Benjamin m>
Sent: Friday, August 14, 2026 1:53 PM
To: 'Debbie Ruddock' <[email protected]>; '[email protected]' <[email protected]>; 'Paul Nagengast' <[email protected]>; '[email protected]' <[email protected]>;
'[email protected]' <[email protected]>
Cc: 'Matthew Chidester' <[email protected]>; 'Dale Leda' <[email protected]> Subject: Public comment on agenda Items 11.C, 9.G, and 11.B on the 18 August 2026 meeting of the City Council
400 Pilarcitos Avenue
Half Moon Bay, CA 94019
The Honorable Deborah Ruddock and Council Members
The City of Half Moon Bay
501 Main Street
Half Moon Bay, CA 94019
14 August 2026
Dear Mayor Ruddock and Members of the City Council:

Because I hope to be out of state next week, please accept the following written public comment on three items from your 18 August 2026 City Council agenda.

1. Item 11.C Highway 1 – North (CIP Project No. 538) Design Amendment No. 8 The agenda report describes supplementary work performed by a consultant including additional planning for drainage and stormwater quality. The agenda report notes the requested Council acceptance of amendment 8 does not change the presently approved scope of work. Attachment 2 to the report provides an estimate for utility certification, and encroachment permitting services.

As you may recall, a contractor for the former owner of the Beachwood/Glencree parcels (now owned by the City) installed an unpermitted below-grade culvert system that receives surface flow and exfiltrates subsurface flows from that property. This diminishes the property’s wetlands, prevents subsurface flows from traveling west to nourish wetlands between Highway 1 and Pilarcitos Creek, and injects additional flashy flows into the abrading Kehoe Watercourse This contributes to erosion 603
flashy flows into the abrading Kehoe Watercourse. This contributes to erosion, sedimentation and the risk of overtopping of the berm protecting the SAM Plant.

I have discussed these issues with council members and staff, and included this matter in written comments on a west-of-SR 1 BRE dated Jun 26, 2023, and more recently in a September 15, 2025 letter (attached) concerning the Highway 1 – North project. As you can see from the following email exchange with Community Development Director Lacko, it is also in the record of public comment for revision of the Safety Element.

I suggested the inclusion of a pipe transit SR 1 for excessive accumulation of water (i.e., threatening to exceed the capacity of the swale after accounting for absorption and evapotranspiration) on the east side of Highway 1. Flows arriving on the west side of SR 1 would nourish degraded wetlands and reach expanded stormwater detention / retention / wetlands, gradually reaching Pilarcitos Creek as subsurface flows.

Please share with the public precisely what revisions to the Highway 1 – North project are proposed with respect to drainage, water quality, encroachment and permitting. In the bad old days, such a proposed revisions could be an effort to paper over unpermitted work that violates coastal resource protection or hazard avoidance policies in the LCP. If that were the case I am sure you would withhold any support until this aspect of the project were revised to comply with the LCLUP.

Perhaps the project now incorporates a capped pipe transiting SR 1 north of the Kehoe Watercourse (exclusively) for the watershed restoration project when plans become clear. If not, could the scope be efficiently revised to incorporate it? Also, is the “amendment 9” on page 2 of the Mark Thomas letter a typo error that should read “amendment 8”? If not, what is amendment 9?

2. Item 9.G Authorization to apply for California Infrastructure and economic development bank financing
Of course grants and planned CIP expenditures are preferable, but I support the staff recommendation, as it seems like an appropriate facility for financing several projects the City may be compelled to pay for but cannot afford.

3. Item 11.B Consideration of Amendments to City Council Rules of Procedure and Decorum
I sympathize with the challenge of considering and responding to late comments; I would just ask that you consider the perspective of members of the public trying to respond constructively to an agenda report containing ambiguities or simplifications that must be resolved before a meaningful response can be prepared.

If the agenda report (such as this week’s) is published Thursday night before a Tuesday meeting, and City Hall is closed on Friday, then the public’s earliest chance to obtain clarity from staff is the day before the Council meeting – if staff can respond that day. After receiving clarification, a complex yet constructive comment may take more than one day to research and draft. But that comment is likely to be discounted as “after 2 p.m. on the day of the meeting” and relegated to more perfunctory consideration.

604
If the agenda reports were published, say, ten days before the meeting, the public would have sufficient time to prepare careful responses to the City well ahead of scheduled meetings. I am not suggesting that staff work harder to get the reports out; I am suggesting that the schedule for public consideration allow enough time for thought-integrated responses from the public. This would more equitably share staff and public responsibility, encouraging public participation and ensuring careful consideration of both agenda reports and public responses. I hope you will consider that change.

I appreciate your consideration of my comments, and look forward to your response.

Respectfully,
Jimmy Benjamin
From: Leslie Lacko <[email protected]>
Sent: Thursday, November 20, 2025 4:03 PM
To: James Benjamin
Cc: Robert Brownstone <[email protected]>; Matthew Chidester <[email protected]>
Subject: RE: Follow up on safety element commitment
Thank you Jimmy. Your comments have been entered into the record.

Leslie Lacko
Community Development Director
501 Main Street, Half Moon Bay, CA 94019
(650) 825-4933
www.halfmoonbay.gov
Note the new website and email address
From: James Benjamin >
Sent: Thursday, November 20, 2025 9:51 AM
To: Leslie Lacko <[email protected]>
Cc: Robert Brownstone <[email protected]>; Matthew Chidester <[email protected]>
Subject: Follow up on safety element commitment
[CAUTION]: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.

Hi Leslie,
I’m glad you found the earlier note worth considering. As promised, attached is the twopage comment letter I sent the City to encourage study the watershed in the context of Hwy. 1 maintenance, but it lays out several watershed related hazards as I currently understand them, including the impoundments, the water diverted from other watersheds and entrained into a highly erodible watercourse. I tried to distill the information into two exhibits. Over ten years ago the RWQCB staff expressed interest in helping the City address the hazards in this watershed – I have attached a copy of Dr. A. L. Riley’s followup to a tour that she and a colleague took of the watercourse 605
606
p , g y
“Safety and sustainability are not at odds; they are two sides of the same coin! “We have briefly discussed the importance of more localized warning systems. For prevention evacuation gridlock. I would have commented on that as well.

Thank you!”
Councilmember Jonsson replied later that night that he raised these concerns, he showed the speaker my text, and gave him my email address and noted that evacuation had been a big topic. He also said that there had been a discussion about fire breaks that back up to riparian habitat.

I responded:
“I have seen some people very familiar with the fire safety rules who seem to have little awareness of the attention our LCP pays to this subject. As the aftermath of the City’s unpermitted 2009 project shows, vegetation is vital to bank stability. I will be interested in what was said.”
I described the hazard of three impoundments in a 4-page letter to the City Council about the State Route 1 rehabilitation project. The letter was specific to the project area, but there may well be other impoundments that present a water detention opportunity if well managed, or a hazard if they are ignored. In addition, the letter pointed out the hazard of inundation of the SAM Plant, which is adjacent to my home, but would be catatstrophic for the entire midcoast. I believe I provided a copies to staff, but tomorrow I will find it and forward it to you.

You mentioned a USGS map that does not map powerful disticntions between degrees if liquefaction hazard in Half Moon Bay, First, the geologic units have not changed, and so planners may want to have a look at the more detailed maps which make these distictions.

Second. even moderately liquefiable soils present a high risk of erosion in the presence of entrained flows and limited vegetation — and that is as true on Pullman, Seymour just as it is on the Kehoe Watercourse; if trees are removed from our major riparian corridors (Arroyo Leon, Pilarcitos Creek and Frenchmans Creek), it is very likely to initiate an unraveling, not unlike the tiles of the ill-fated Space Shuttle Columbia after it lost a heat-resistant tile and disintegrated during atmostpheric reentry. We all know enough about stream morphology to avoid these kind of mistakes.

Matthew mentioned that the county has a localized warning system, but to ther county, “localized” may mean a warning to the entire coast, or the City of Half Moon Bay, and might not make critical distinctions about who needs to evacuate, say from a a fire, or a debris flow, or a dam failure or a tsunami; when the sirens go off and the emails go out , it seems looks like everyone in town gets it. Why should my neighbors and I clog a road that downtown.

I was surprised by your post-meeting observation that the planning process is not just for my benefit. The story of the removal of trees in a riparian area causing bank retreat and subsequently aggravating fire risk is a cautionary tale, and I have spent quite a bit of time with neighbors in other watersheds helping them understand their hydrology and geomorphology issues. My willingness to participate as a member of the public, alone if need be, does not make this for my benefit. If it seems otherwise to you, my invitation

607
608
1 of 1
Tu s a August 18 20 t :14:5 Tuesday, August 18, 2026 at 5:14:59 e d y, u , 26 a 5 9 s a August 18 20 t :14:5  P Pa ific Da l PM Pacific Daylight Time M c fi D y ight Time ub ctS je : c Subjet: Fwd: Council meeting today
a :D te a Tuesday, August 18, 2026 at 4:49:00PM Pacific Daylight Time rF om: Deborah Penrose
To: Maggie Rodriguez
Begin forwarded message:

From: Reuben Gallegos
Subject: Council meeting today
Date: 18 August 2026 at 10:26:49am GMT-7
To: [email protected]
[CAUTION]: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.

Deborah
I am writing regarding the decision to name the property that is part of our beloved OLOP community.

I am shocked to see that the property remains a target for high density housing for the city.

This is wrong for so many reasons but mostly because it will derail our plans for our school.

The congestion in that area will make downtown and Kelly even worse than it is today.

I will be at the meeting this evening to support our parish and urge you to support our plans and permanently remove this parcel from future county plans Thank you
HMB
Reuben
609
610
2 of 3
As a Catholic school focused on providing a classical education, the Academy is unique in giving coast side parents a faith based educational option for their children.  The need for this type of education on the coast is underscored by the fact that as it enters its fourth year of operation, the school’s enrollment has more than doubled over the last two years from 24 to 60. To continue to grow and thrive, OLPA needs a new building.

Rezo ing this Parce I terfere Wit Our Abilit to Practice our Rezoning this Parcel Interferes With Our Ability to Practice our zoning this Parcel Inte e es ith ur b ity to Pra t e r Fa thi
A big part of the Catholic church’s mission is the education and faith formation of our children. The establishment of this school is in furtherance of this mission.  A city ordinance that prevents or hinders our congregation from moving forward with building this school on land that has already been zoned for a school raises some very troubling First Amendment issues.

The Cit Has Other ptio s f r us ng – OLP Ha No O her The City Has Other Options for Housing – OLPA Has No Other he ity H s the Options for Ho sin – OLPA H s Other Opt nio
There are numerous parcels within the city limits that can be designated for housing – however there is only ONE parcel – the one owned by and adjacent to the Church - where our Catholic school can be built. It’s critical that the new building for OLPA be adjacent to the Church since the students attend daily Mass and participate in other worship and educational activities at the Church.

The city has other options – including land owned by the City – on which to build housing to meet the state’s housing requirements.

Rezoning our Church land will deprive OLPA of the only parcel the only parcel he only parcel on which its school building can be built.

I once again request that the proposed ordinance be amended to remove the OLPA parcel from the proposed list of parcels to be rezoned for high density housing.

Thank you.

Sincerely
Anne Martin
--
611
3 of 3
Anne
Anne C. Martin
612
1 of 1
Tu s a August 18 20 t :15:1 Tuesday, August 18, 2026 at 5:15:14 e d y, u , 26 a 5 4 s a August 18 20 t :15:1  P Pa ific Da l PM Pacific Daylight Time M c fi D y ight Time ub ctS je : c Subjet: Fwd: Support of OLP
a :D te a Tuesday, August 18, 2026 at 4:48:46PM Pacific Daylight Time rF om: Deborah Penrose
To: Maggie Rodriguez
Begin forwarded message:

From: elizabeth mcpartlan
Subject: Support of OLP
Date: 18 August 2026 at 4:00:02pm GMT-7
To: [email protected]
You don't often get email from [email protected]. Learn why this is important [CAUTION]: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.

Dear Vice Mayor PenroseI am writing in support of Our Lady of the Pillar Catholic Church. My family and I have been parish members for over 20 years, and I can not overstate the importance of this church to our community. In recent years, the church has added a school, and has additional plans to expand parish services that include use of the land they own. The church’s land is not for sale to satisfy the state’s demands for more housing. I am sure there are alternative land options, and I urge you to remove Our Lady of the Pillar’s land from your list of possible development sites.

Thank youElizabeth McPartlan
HMB
613
614
615
I Support the Church
From: mark massara
To: Bridget Jett
Fri 8/7/2026 10:04 AM
Dear City,
Please add me to the list of those who oppose the Cycle 6 Housing Element / LCP Implementation Plan and Revised Zoning Map.

Among other things I support the Church and don’t appreciate the City attempting to use Church property to provide housing. That is a sham designed to fake compliance with housing laws with everyone knowing full well the housing will never be realized.

Instead, the City should be analyzing and including real housing opportunities, and the many open undeveloped areas throughout the City that are excellent areas for future development, including increasing density in the partially developed Pacific Ridge project, the Podesta fields, Beachwood, and the Surf Beach and Dunes tracts.

The continued legacy of numerous ill conceived PUDs throughout the City is the primary reason the City is in violation of state housing laws, not a lack of available space. In other words, the continued non-compliance is willful and deliberate. Using fake development goals like Church properties is shameful, and should be stricken asap. The only way to positively impact the housing crises is to actually build more housing, not simply talk about it or carry on like building a few units downtown is going to make a difference.

Thank you,
Mark Massara

HMB CA
616
From: Nicolette
Subject: Housing Element OLP
Date: August 17, 2026 at 12:13PM
To: [email protected]
Cc: [email protected], [email protected], [email protected], [email protected], [email protected]
You don't often get email from [email protected]. Learn why this is important [CAUTION]: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. 08/17/2026
Dear Mayor Ruddock and Councilmembers,
I am writing regarding tomorrow night's vote on the Housing Element rezoning and by-right amendments and, specifically, the continued inclusion of the Our Lady of the Pillar property as a housing opportunity site. Unfortunately, I am unable to attend tomorrow night's meeting, so I am submitting my comments and questions by email for the Council's consideration and inclusion in the public record.

I received the information distributed by Our Lady of the Pillar this weekend and have been reviewing the City's Housing Element documents as well. Before the Council takes final action, I would appreciate clarification on three points:

1. What exactly is the Council voting to change regarding the Our Lady of the Pillar property? Please identify the specific parcel and explain what zoning, overlay, or land-use designation applies to the property now and what, if anything, changes as a result of tomorrow night's vote.

2. The church's information states that the Planning Commission's position was that the OLP site could be removed from the Housing Element and replaced with other sites within six months. When and where did the Planning Commission make this recommendation or statement? Please identify the meeting, minutes, staff report, or other public record documenting it.

3. If the OLP property remains in the Housing Element, what does that designation actually mean for the property owner? Specifically, does the designation give the City any authority to require, acquire, or otherwise pursue housing development on the property if the owner does not wish to sell or develop it for housing? I understand that the City is under state housing requirements and that the Council is working under a deadline. I also understand that the City does not own the OLP property. That is precisely why I believe the public deserves a clear explanation of what retaining this particular site accomplishes and why it is necessary when the church has stated that the property is intended for the future expansion of Our Lady of the Pillar Academy.

I respectfully ask that these questions and my comments be provided to the Council for tomorrow night's meeting and included in the public record.

Thank you,
Nicolette Martin
HMB Resident
617
I Support the Church
From: mark massara
To: Bridget Jett
Fri 8/7/2026 10:04 AM
Dear City,
Please add me to the list of those who oppose the Cycle 6 Housing Element / LCP Implementation Plan and Revised Zoning Map.

Among other things I support the Church and don’t appreciate the City attempting to use Church property to provide housing. That is a sham designed to fake compliance with housing laws with everyone knowing full well the housing will never be realized.

Instead, the City should be analyzing and including real housing opportunities, and the many open undeveloped areas throughout the City that are excellent areas for future development, including increasing density in the partially developed Pacific Ridge project, the Podesta fields, Beachwood, and the Surf Beach and Dunes tracts.

The continued legacy of numerous ill conceived PUDs throughout the City is the primary reason the City is in violation of state housing laws, not a lack of available space. In other words, the continued non-compliance is willful and deliberate. Using fake development goals like Church properties is shameful, and should be stricken asap. The only way to positively impact the housing crises is to actually build more housing, not simply talk about it or carry on like building a few units downtown is going to make a difference.

Thank you,
Mark Massara

HMB CA
618
1 of 2
Tu s a August 18 20 t :15:3 Tuesday, August 18, 2026 at 5:15:36 e d y, u , 26 a 5 6 s a August 18 20 t :15:3  P Pa ific Da l PM Pacific Daylight Time M c fi D y ight Time ub ctS je : c Subjet: Re: Support of OLP
a :D te a Tuesday, August 18, 2026 at 4:29:24PM Pacific Daylight Time rF om: Maggie Rodriguez
:To Paul Nagengast
C:C Matthew Chidester
At c m s: Attachments: ta hment img-521a8b15-27a8-47a8-9836-763d1f269d0f.png Thank you!
Sincerely,
Maggie Rodriguez CMC
City Clerk
Communications/City Clerk Department
501 Main Street, Half Moon Bay, CA 94019
Call/Text: (650) 726-8266
www.halfmoonbay.gov
F m: ro FPaul Nagengast <[email protected]>
Date: Tuesday, August 18, 2026 at 4:17PM
T o:Maggie Rodriguez <[email protected]>
Cc: Matthew Chidester <[email protected]>
Subject: ubj ct: ubj ct: Subject: Fw: Support of OLP
Hello Maggie, I received this letter and wanted to forward to you since it is an agenda item tonight (8/18/26).

Paul
From: elizabeth mcpartlan <[email protected]>
Sent: Tuesday, August 18, 2026 4:01 PM
To: Paul Nagengast <[email protected]>
Subject: Support of OLP
You don't often get email from [email protected]. Learn why this is important [CAUTION]: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.

Dear Councilmember NagengastI am writing in support of Our Lady of the Pillar Catholic Church. My family and I have been parish members for over 20 years, and I can not overstate the importance of this 619
620
621
622
623
624
625
626
627
Rocket Farms, Inc.
“2651 North Cabrillo Highway, LLC”
2651 Cabrillo Highway North
Half Moon Bay CA 94109
August 18, 2026
City of Half Moon Bay
510 Main Street
Half Moon Bay CA 94019
Attention:

Mayor Debbie Ruddock
Vice Mayor Deborah Penrose
Robert Brownstone, Councilmember
Patric Bo Jonsson, Councilmember
Paul Nagengast, Councilmember
Matthew Chidester, City Manager [email protected] Ms. Leslie Lacko, Community Development Director [email protected] Denise Bazzano, City Attorney [email protected]
Maggie Rodriguez, City Clerk [email protected] Re: Cabrillo Highway North property, Half Moon Bay (APNs: 048-300-090, 100, 190, 210, 220, 230, 230, 240, 260 and 300)
Submitted as a part of public testimony for 8/18/2026 City Council hearing, Item no. 10A Dear Half Moon Bay Mayor, Vice Mayor, City Councilmembers, City Manager, Community Development Director, City Attorney and City Clerk:

As many of you are aware, I am the CEO and owner of Rocket Farms, Inc., and the owner and managing member of “2651 North Cabrillo Highway, LLC” which owns properties located at 2281 and 2651 Cabrillo Highway North.

As the City is considering approval of its Housing Element and corresponding re-zonings, and as one of the largest property owners and one of the largest employers in Half Moon Bay, I am reaching out to inform the City that I remain willing to develop this property to assist the City of Half Moon Bay in satisfying their RHNA numbers, with a residential project of which 20% of the units would be affordable.

As some of you may recall, 2651 North Cabrillo Highway, LLC also reached out formally to the City in 2020 to create the opportunity to help satisfy Half Moon Bay’s portion of RHNA, as well as satisfy the City’s then “Development Vision” as stated in the LUP Update, to accommodate a multi-generational neighborhood with young families, seniors, and assorted other household groups of mixed income levels. We asked that the City find a way to allow over time for our property on Cabrillo Highway to recycle to an eventual land use that would help to legitimately solve the City’s stated housing goals. Despite these efforts, and our proximity to an existing residential neighborhood (Frenchmans Creek residential subdivision), our property was not placed on any opportunity site lists by the City, and the City moved forward without consideration of our site as a solution to achieve RHNA’s allocations in the Housing Element.

We were told that such a proposed residential development could not happen under Half Moon Bay Measure D’s limited allotments.

We renew that desire to help satisfy Half Moon Bay’s RHNA allocations, and continue to question how under Measure D and the latest recommendations for amending the Housing Element that compliance with State law including Half Moon Bay’s RHNA requirements will be achieved in a timely manner that fulfills State requirements. Apparently, HCD and the Attorney General are concerned about this as well; hence their recent filing. We look forward to working with you to enable Half Moon Bay’s compliance pursuant to RHNA and State law.

Very truly yours,
Charles Kosmont
Chief Executive Officer, Rocket Farms, Inc.

Managing Member, 2651 North Cabrillo Highway, LLC (property owner) 628

CITY OF HALF MOON BAY

PROFESSIONAL SERVICES AGREEMENT
____________________________________
THIS PROFESSIONAL SERVICES AGREEMENT (“Agreement”) is made by and between the City of Half Moon Bay, (“City”) and Coastside Hope, a California nonprofit corporation (“Consultant”), effective as of July 1, 2026.

Section 1. SERVICES. Subject to the terms and conditions set forth in this Agreement, Consultant shall provide to City the services described in the Scope of Work and Application Guidelines, attached hereto as Exhibit A at the time and place and in the manner specified therein.

In the event of a conflict in or inconsistency between the terms of this Agreement and Exhibit A, this Agreement shall prevail.

1.1 Term of Services. The term of this Agreement shall begin on the date first noted above and shall run until June 30, 2027, or until terminated by either party pursuant to Section 8.

1.2 Standard of Performance. Consultant shall perform all services required pursuant to this Agreement in the manner and according to the standards observed by a competent practitioner of the profession in which Consultant is engaged in the geographical area in which Consultant practices its profession. Consultant shall prepare all work products required by this Agreement in accordance with usual and customary professional and shall conform to the standards of quality normally observed by a person practicing in Consultant's profession.

1.3 Assignment of Personnel. Consultant shall assign only competent personnel to perform services pursuant to this Agreement. In the event that City, in its sole discretion, at any time during the term of this Agreement, desires the reassignment of any such persons, Consultant shall, immediately upon receiving notice from City of such desire of City, reassign such person or persons.

1.4 Time. Consultant shall devote such time to the performance of services pursuant to this Agreement as may be reasonably necessary to meet the standard of performance provided in Section 1.2 above and to satisfy Consultant’s obligations hereunder.

Section 2. COMPENSATION. Exhibit A to this contract contains the Scope of Work and the Fee Schedule. The City shall pay Consultant for services rendered pursuant to the Fee Schedule at the time and in the manner set forth herein. Consultant shall submit all invoices to City in the manner specified herein. Except as specifically authorized by City, Consultant shall not bill City for duplicate services performed by more than one person.

Docusign Envelope ID: F7E6653B-14EE-815B-8024-A4C69CB1E4A4 Docusign Envelope ID: 897F99E4-ABB0-8A79-8172-105863A24925 62936
Consultant and City acknowledge and agree that compensation paid by City to Consultant under this Agreement is based upon Consultant’s estimated costs of providing the services required hereunder, including salaries and benefits of employees and subcontractors of Consultant.

Consequently, the parties further agree that compensation hereunder is intended to include the costs of contributions to any pensions and/or annuities to which Consultant and its employees, agents, and subcontractors may be eligible. City therefore has no responsibility for such contributions beyond compensation required under this Agreement.

2.1 Invoices. Consultant shall submit a mid-year report and final report during the term of this Agreement, based on the cost for services performed prior to the invoice date.

Invoices shall contain the following information:
▪ Serial identifications of progress bills; i.e., Progress Bill No. 1 for the first invoice, etc.; ▪ The beginning and ending dates of the billing period; ▪ A Task Summary along with the amount of prior billings, the total due in the current period, and the percentage of completion of processing for the application; ▪ For each application processed, a copy of the applicable time entries or time sheets shall be submitted showing the name of the person doing the work, the hours spent by each person, and a brief description of the work;
▪ The total number of hours of work performed under the Agreement by Consultant and each employee, agent, and subcontractor of Consultant performing services hereunder, as well as a separate notice when the total number of hours of work by Consultant and any individual employee, agent, or subcontractor of Consultant reaches or exceeds 800 hours;
▪ The Consultant’s signature.

2.2 Monthly Payment. City shall make monthly payments, based on invoices received, for services satisfactorily performed. City shall have 30 days from the receipt of an invoice that complies with all of the requirements above to pay Consultant.

2.3 Hourly Fees. Fees for work performed by Consultant on an hourly basis shall not exceed the amounts shown on the Fee Schedule shown in Exhibit A, incorporated herein by this reference.

2.4 Payment of Taxes. Consultant is solely responsible for the payment of employment taxes incurred under this Agreement and any similar federal or state taxes.

2.5 Payment upon Termination. In the event that the City or Consultant terminates this Agreement pursuant to Section 8, the City shall compensate the Consultant for all outstanding costs incurred for work satisfactorily completed as of the date of written notice of termination. Consultant shall maintain adequate logs and timesheets in order to verify costs incurred to that date.

Docusign Envelope ID: F7E6653B-14EE-815B-8024-A4C69CB1E4A4 Docusign Envelope ID: 897F99E4-ABB0-8A79-8172-105863A24925 6307

2.6 Authorization to Perform Services. The Consultant is not authorized to perform any services or incur any costs whatsoever under the terms of this Agreement until receipt of authorization from the Contract Administrator.

Section 3. FACILITIES AND EQUIPMENT. Except as set forth herein, Consultant shall, at its sole cost and expense, provide all facilities and equipment that may be necessary to perform the services required by this Agreement.

Section 4. INSURANCE REQUIREMENTS.

4.1 During the term of this Agreement, Consultant shall carry, maintain, and keep in full force and effect insurance against claims for death or injuries to persons or damages to property that may arise from or in connection with Consultant’s performance of this Agreement. Such insurance shall be of the types and in the amounts as set forth below:
▪ Comprehensive General Liability Insurance with coverage limits of not less than One Million Dollars ($1,000,000) including products and operations hazard, contractual insurance, broad form property damage, independent consultants, personal injury, underground hazard, and explosion and collapse hazard where applicable.
▪ Automobile Liability Insurance for vehicles used in connection with the performance of this Agreement with minimum limits of One Million Dollars ($1,000,000) per claimant and One Million dollars ($1,000,000) per incident. ▪ Worker’s Compensation insurance as required by the laws of the State of California.
▪ Professional Errors and Omissions Insurance with coverage limits of not less than One Million Dollars ($1,000,000).

4.2 Consultant shall require each of its subcontractors within their subcontract (in writing) to maintain insurance coverage that meets all of the requirements of this Agreement.

4.3 The policy or policies required by this Agreement shall be issued by an insurer admitted in the State of California and with a rating of at least A: VII in the latest edition of Best’s Insurance Guide.

4.4. Consultant agrees that if it does not keep the aforesaid insurance in full force and effect, City may either (i) immediately terminate this Agreement; or (ii) take out the necessary insurance and pay, at Consultant’s expense, the premium thereon.

Docusign Envelope ID: F7E6653B-14EE-815B-8024-A4C69CB1E4A4 Docusign Envelope ID: 897F99E4-ABB0-8A79-8172-105863A24925 6318

4.5. At all times during the term of this Agreement, Consultant shall maintain on file with City’s Finance Manager a certificate or certificates of insurance showing that the aforesaid policies are in effect in the required amounts and naming the City and its officers, employees, agents and volunteers as additional insureds. Consultant shall, prior to commencement of work under this Agreement, file with City’s Risk Manager such certificate(s).

4.6. Consultant shall provide proof that policies of insurance required herein expiring, or cancelled, during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Such proof will be furnished at least two weeks prior to the expiration of the coverages, or immediately for any policy being cancelled.

4.7. The general liability and automobile policies of insurance required by this Agreement shall contain an endorsement naming City and its officers, employees, agents and volunteers as additional insureds. All of the policies required under this Agreement shall contain an endorsement providing that the policies cannot be canceled or reduced except on thirty days’ prior written notice to City.

4.8. The insurance provided by Consultant shall be primary to any coverage available to City. Any insurance or self-insurance maintained by City and/or its officers, employees, agents or volunteers, shall be in excess of Consultant’s insurance and shall not contribute with it. .

4.9. All insurance coverage provided pursuant to this Agreement shall not prohibit Consultant, and Consultant’s employees, agents or subcontractors, from waiving the right of subrogation prior to a loss. Consultant hereby waives all rights of subrogation against the City.

4.10. Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of City, Consultant shall either reduce or eliminate the deductibles or self-insured retentions with respect to City, or Consultant shall procure a bond guaranteeing payment of losses and expenses.

4.11. Procurement of insurance by Consultant shall not be construed as a limitation of Consultant’s liability or as full performance of Consultant’s duties to indemnify, hold harmless and defend under Section 10 of this Agreement.

Section 5. INDEMNIFICATION AND CONSULTANT’S RESPONSIBILITIES.

Consultant shall hold harmless, defend and indemnify City and its officers, officials, employees and volunteers from and against any and all liability, loss, damage, expense, costs (including Docusign Envelope ID: F7E6653B-14EE-815B-8024-A4C69CB1E4A4 Docusign Envelope ID: 897F99E4-ABB0-8A79-8172-105863A24925 6329
without limitation costs and fees of litigation) of every nature arising out of or in connection with Consultant’s performance of work hereunder or its failure to comply with any of its obligations contained in the agreement, except such loss or damage which was caused by the sole negligence or willful misconduct of the City.

The foregoing obligation of Consultant shall not apply when (1) the injury, loss of life, damage to property, or violation of law arises wholly from the negligence or willful misconduct of the City or its officers, employees, agents, or volunteers and (2) the actions of Consultant or its employees, subcontractor, or agents have contributed in no part to the injury, loss of life, damage to property, or violation of law. It is understood that the duty of Consultant to indemnify and hold harmless includes the duty to defend as set forth in Section 2778 of the California Civil Code. Acceptance by City of insurance certificates and endorsements required under this Agreement does not relieve Consultant from liability under this indemnification and hold harmless clause. By execution of this Agreement, Consultant acknowledges and agrees to the provisions of this Section and that it is a material element of consideration.

The total liability in the aggregate of Consultant and its employees, subcontractors or suppliers to the City and anyone claiming through or under the City on all claims of any kind (excluding claims for death or bodily injury) arising out of or in any way related to Consultant's services or from any cause or causes whatsoever shall not exceed the limits of insurance identified herein.

In the event that Consultant or any employee, agent, or subcontractor of Consultant providing services under this Agreement is determined by a court of competent jurisdiction or the California Public Employees Retirement System (PERS) to be eligible for enrollment in PERS as an employee of City, Consultant shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for PERS benefits on behalf of Consultant or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of City.

Section 6. STATUS OF CONSULTANT.

6.1 Independent Contractor. At all times during the term of this Agreement, Consultant shall be an independent contractor and shall not be an employee of City.

City shall have the right to control Consultant only insofar as the results of Consultant's services rendered pursuant to this Agreement and assignment of personnel pursuant to Subparagraph 1.3; however, otherwise City shall not have the right to control the means by which Consultant accomplishes services rendered pursuant to this Agreement. Notwithstanding any other City, state, or federal policy, rule, regulation, law, or ordinance to the contrary, Consultant and any of its employees, agents, and subcontractors providing services under this Agreement Docusign Envelope ID: F7E6653B-14EE-815B-8024-A4C69CB1E4A4 Docusign Envelope ID: 897F99E4-ABB0-8A79-8172-105863A24925 63340
shall not qualify for or become entitled to, and hereby agree to waive any and all claims to, any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in the California Public Employees Retirement System (PERS) as an employee of City and entitlement to any contribution to be paid by City for employer contributions and/or employee contributions for PERS benefits.

6.2 Consultant No Agent. Except as City may specify in writing, Consultant shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an agent. Consultant shall have no authority, express or implied, pursuant to this Agreement to bind City to any obligation whatsoever.

Section 7. LEGAL REQUIREMENTS.

7.1 Governing Law. The laws of the State of California shall govern this Agreement.

7.2 Compliance with Applicable Laws. Consultant and any subcontractors shall comply with all laws applicable to the performance of the work hereunder.

7.3 Other Governmental Regulations. To the extent that this Agreement may be funded by fiscal assistance from another governmental entity, Consultant and any subcontractors shall comply with all applicable rules and regulations to which City is bound by the terms of such fiscal assistance program.

7.4 Licenses and Permits. Consultant represents and warrants to City that Consultant and its employees, agents, and any subcontractors have all licenses, permits, qualifications, and approvals of whatsoever nature that are legally required to practice their respective professions. Consultant represents and warrants to City that Consultant and its employees, agents, any subcontractors shall, at their sole cost and expense, keep in effect at all times during the term of this Agreement any licenses, permits, and approvals that are legally required to practice their respective professions. In addition to the foregoing, Consultant and any subcontractors shall obtain and maintain during the term of this Agreement valid Business Licenses from City.

7.5 Nondiscrimination and Equal Opportunity. Consultant shall not discriminate, on the basis of a person’s race, religion, color, national origin, age, physical or mental handicap or disability, medical condition, marital status, sex, or sexual orientation, against any employee, applicant for employment, subcontractor, bidder for a subcontract, or participant in, recipient of, or applicant for any services or Docusign Envelope ID: F7E6653B-14EE-815B-8024-A4C69CB1E4A4 Docusign Envelope ID: 897F99E4-ABB0-8A79-8172-105863A24925 63441
programs provided by Consultant under this Agreement. Consultant shall comply with all applicable federal, state, and local laws, policies, rules, and requirements related to equal opportunity and nondiscrimination in employment, contracting, and the provision of any services that are the subject of this Agreement, including but not limited to the satisfaction of any positive obligations required of Consultant thereby.

Consultant shall include the provisions of this Subsection in any subcontract approved by the Contract Administrator or this Agreement.

Section 8. TERMINATION AND MODIFICATION.

8.1 Termination. City may cancel this Agreement at any time and without cause upon 15 day’s written notice to Consultant.

Consultant may cancel this Agreement upon 15 days’ written notice to City.

In the event of termination, Consultant shall be entitled to compensation for services performed to the effective date of termination; City, however, may condition payment of such compensation upon Consultant delivering to City any or all documents, photographs, computer software, video and audio tapes, and other materials provided to Contract or prepared by or for Consultant or the City in connection with this Agreement. In the event Consultant is not provided notice of any outstanding materials to be delivered to City, Consultant shall be entitled to payment within 30 days.

8.2 Extension. City may, in its sole and exclusive discretion, extend the end date of this Agreement beyond that provided for in Subsection 1.1. Any such extension shall require a written amendment to this Agreement, as provided for herein.

Consultant understands and agrees that, if City grants such an extension, City shall have no obligation to provide Consultant with compensation beyond the maximum amount provided for in this Agreement. Similarly, unless authorized by the Contract Administrator, City shall have no obligation to reimburse Consultant for any otherwise reimbursable expenses incurred during the extension period.

8.3 Amendments. The parties may amend this Agreement only by a writing signed by all the parties.

8.4 Assignment and Subcontracting. City and Consultant recognize and agree that this Agreement contemplates personal performance by Consultant and is based Docusign Envelope ID: F7E6653B-14EE-815B-8024-A4C69CB1E4A4 Docusign Envelope ID: 897F99E4-ABB0-8A79-8172-105863A24925 63542
upon a determination of Consultant’s unique personal competence, experience, and specialized personal knowledge. Moreover, a substantial inducement to City for entering into this Agreement was and is the professional reputation and competence of Consultant. Consultant may not assign this Agreement or any interest therein without the prior written approval of the Contract Administrator. Consultant shall not subcontract any portion of the performance contemplated and provided for herein, other than to the subcontractors noted in the proposal, without prior written approval of the Contract Administrator.

8.5 Survival. All obligations arising prior to the termination of this Agreement and all provisions of this Agreement allocating liability between City and Consultant shall survive the termination of this Agreement.

8.6 Options upon Breach by Consultant. If Consultant materially breaches any of the terms of this Agreement, City’s remedies shall include, but not be limited to, the following:

8.6.1 Immediately terminate the Agreement;

8.6.2 Retain the plans, specifications, drawings, reports, design documents, and any other work product prepared by Consultant pursuant to this Agreement;

8.6.3 Retain a different consultant to complete the work described in Exhibit A not finished by Consultant; or

8.6.4 Charge Consultant the difference between the cost to complete the work described in Exhibit A that is unfinished at the time of breach and the amount that City would have paid Consultant pursuant to Section 2 if Consultant had completed the work.

Section 9. KEEPING AND STATUS OF RECORDS.

9.1 Records Created as Part of Consultant’s Performance. All reports, data, maps, models, charts, studies, surveys, photographs, memoranda, plans, studies, specifications, records, files, or any other documents or materials, in electronic or any other form, that Consultant prepares or obtains pursuant to this Agreement and that relate to the matters covered hereunder shall be the property of the City.

Consultant hereby agrees to deliver those documents to the City upon termination of the Agreement. It is understood and agreed that the documents and other materials, including but not limited to those described above, prepared pursuant to Docusign Envelope ID: F7E6653B-14EE-815B-8024-A4C69CB1E4A4 Docusign Envelope ID: 897F99E4-ABB0-8A79-8172-105863A24925 63643
this Agreement are prepared specifically for the City and are not necessarily suitable for any future or other use. To the extent allowed by law, City and Consultant agree that, until final approval by City, all data, plans, specifications, reports and other documents are confidential and will not be released to third parties without prior written consent of both parties.

9.2 Consultant’s Books and Records. Consultant shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, and other records or documents evidencing or relating to charges for services or expenditures and disbursements charged to the City under this Agreement for a minimum of three (3) years, or for any longer period required by law, from the date of final payment to the Consultant to this Agreement.

9.3 Inspection and Audit of Records. Any records or documents that Section 9.2 of this Agreement requires Consultant to maintain shall be made available for inspection, audit, and/or copying at any time during regular business hours, upon oral or written request of the City. Under California Government Code Section 8546.7, if the amount of public funds expended under this Agreement exceeds TEN THOUSAND DOLLARS ($10,000.00), the Agreement shall be subject to the examination and audit of the State Auditor, at the request of City or as part of any audit of the City, for a period of three (3) years after final payment under the Agreement.

Section 10 MISCELLANEOUS PROVISIONS.

10.1 Attorneys’ Fees. If a party to this Agreement brings any action, including an action for declaratory relief, to enforce or interpret the provision of this Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees in addition to any other relief to which that party may be entitled. The court may set such fees in the same action or in a separate action brought for that purpose.

10.2 Venue. In the event that either party brings any action against the other under this Agreement, the parties agree that trial of such action shall be vested exclusively in the state courts of California in the County of San Mateo or in the United States District Court for the Northern District of California.

10.3 Severability. If a court of competent jurisdiction finds or rules that any provision of this Agreement is invalid, void, or unenforceable, the provisions of this Agreement not so adjudged shall remain in full force and effect. The invalidity in Docusign Envelope ID: F7E6653B-14EE-815B-8024-A4C69CB1E4A4 Docusign Envelope ID: 897F99E4-ABB0-8A79-8172-105863A24925 63744
whole or in part of any provision of this Agreement shall not void or affect the validity of any other provision of this Agreement.

10.4 No Implied Waiver of Breach. The waiver of any breach of a specific provision of this Agreement does not constitute a waiver of any other breach of that term or any other term of this Agreement.

10.5 Successors and Assigns. The provisions of this Agreement shall inure to the benefit of and shall apply to and bind the successors and assigns of the parties.

10.6 Use of Recycled Products. Consultant shall prepare and submit all reports, written studies and other printed material on recycled paper to the extent it is available at equal or less cost than virgin paper.

10.7 Conflict of Interest. Consultant may serve other clients, but none whose activities within the corporate limits of City or whose business, regardless of location, would place Consultant in a “conflict of interest,” as that term is defined in the Political Reform Act, codified at California Government Code Section 81000 et seq.

Consultant shall not employ any City official in the work performed pursuant to this Agreement. No officer or employee of City shall have any financial interest in this Agreement that would violate California Government Code Sections 1090 et seq.

10.8 Solicitation. Consultant agrees not to solicit business at any meeting, focus group, or interview related to this Agreement, either orally or through any written materials.

10.9 Contract Administration. This Agreement shall be administered by the City Manager or their designee (“Contract Administrator”). All correspondence shall be directed to or through the Contract Administrator.

10.10 Notices.

Any written notice to Consultant shall be sent to:

Judith Guerrero
Executive Director
Coastside Hope
Docusign Envelope ID: F7E6653B-14EE-815B-8024-A4C69CB1E4A4 Docusign Envelope ID: 897F99E4-ABB0-8A79-8172-105863A24925 63845
248 Main St #200
Half Moon Bay, CA 94019
(650) 726-9071
[email protected]
Any written notice to City shall be sent to:

City of Half Moon Bay
501 Main Street
Half Moon Bay, CA 94019
Attn: Irma Acosta
Phone: (650) 750-2017
Fax: (650) 726-9389
Email: [email protected]

10.11 Integration. This Agreement, including the Scope of Work and Fee Schedule attached hereto and incorporated herein as Exhibit A, represents the entire and integrated agreement between City and Consultant and supersedes all prior negotiations, representations, or agreements, either written or oral. /
Docusign Envelope ID: F7E6653B-14EE-815B-8024-A4C69CB1E4A4 Docusign Envelope ID: 897F99E4-ABB0-8A79-8172-105863A24925 63946
IN WITNESS WHEREOF, the City and the Consultant have executed this Agreement effective as of the date first written above.
“CITY”

CITY OF HALF MOON BAY
Date:______________________ By:___________________________ Matthew Chidester, City Manager
Attest: Approved as to form:

By:_________________________ ____________________________ Maggie Rodriguez, City Clerk Denise S. Bazzano, Interim City Attorney Date:________________________
“CONSULTANT”

COASTSIDE HOPE
Date:______________________ By:____________________________ Judith Guerrero
Its:___Executive Director __________
Attachments:

Exhibit A. Scope of Services
Docusign Envelope ID: F7E6653B-14EE-815B-8024-A4C69CB1E4A4 6/25/2026
Docusign Envelope ID: 897F99E4-ABB0-8A79-8172-105863A24925 7/7/2026
7/8/2026
6407

EXHIBIT A

CITY OF HALF MOON BAY

COASTSIDE HOPE
FISCAL YEAR 2026-2027
Agency Information
Agency Name: COASTSIDE HOPE
Address: 248 Main St #200
City, State, Zip: Half Moon Bay, CA 94019
Activity/Program Title: Rental Assistance Program
Description of Services to be Provided:

Coastside Hope shall administer the City of Half Moon Bay Rental Assistance Program for Fiscal Year 2026–2027. Services shall include:
• Intake, eligibility review, and case management for households experiencing temporary financial hardship or housing instability; • Administration and distribution of rental assistance, utility assistance, security deposit assistance, and other eligible housing stabilization assistance;
• Verification of applicant documentation and coordination of available funding sources to avoid duplicate assistance;
• Referrals to supportive services, housing resources, and financial counseling services, as appropriate;
• Periodic reporting to the City regarding households served, assistance distributed, program outcomes, and general service trends.

Eligible applicants shall live in the City of Half Moon Bay and demonstrate financial hardship or housing instability. Assistance shall be provided in accordance with program guidelines and subject to available funding.

Coastside Hope shall submit a mid-year report due January 1, 2027, and a final report due June 1, 2027.

The total compensation under this Agreement shall not exceed $120,000.

Docusign Envelope ID: F7E6653B-14EE-815B-8024-A4C69CB1E4A4 Docusign Envelope ID: 897F99E4-ABB0-8A79-8172-105863A24925 6418