Hercules City Council
November 14, 2023

Agreement No. 22-054
Resolution No. ________

CITY OF HERCULES

PROFESSIONAL SERVICES AGREEMENT
This Agreement (“Agreement”) for professional services is made on September 13, 2022, between the City of Hercules, a California municipality (“City”), and MIG, Inc., a Corporation (“Consultant”) (individually, a “Party,” and collectively, the “Parties”).

1. Scope of Services. Consultant will provide to City the professional services described in the Scope of Services, attached as Attachment A and incorporated in this Agreement (the “Services”). Only the City Council or the City Manager may authorize any change or addition to the Scope of Services specified in Attachment A.

2. Term. This Agreement will become effective on September 13, 2022 (“Effective Date”), and will terminate upon the full and satisfactory completion of the Services or as otherwise specified in Attachment A, unless terminated sooner in accordance with Section 10 of this Agreement. Time is of the essence with respect to all provisions of this Agreement that specify a time for performance.

3. Compensation. For the full and satisfactory completion of the Services, City will pay Consultant in an amount not to exceed One Hundred Ninety Thousand Eight Hundred Forty Five Dollars ($190,845), without prior written authorization by City, pursuant to the terms set forth in Attachment B on Payment, which is attached to and incorporated in this Agreement.

Consultant’s compensation is intended to encompass all costs required for performing the Services, including overhead and indirect costs. Except as expressly provided in Attachment B, Consultant will not be entitled to reimbursement for expenses it incurs to provide the Services.

3.1 Payment. City will pay Consultant for Services satisfactorily provided during each calendar month within 30 days following City receipt and approval of a detailed invoice. The invoice must include, at a minimum: a description of the specific Services provided; the name of the individual providing the Services; the date(s) upon which the Services were provided; the time spent providing the Services; the amount due for the Services; and the basis for calculating the amount due.

3.2 Additional Services. If the City requests related services beyond the Scope of Services described in Attachment A, the Consultant will provide City a written estimate for the additional services (“Additional Services”). Consultant will not provide Additional Services until Consultant has received written authorization from the City to perform the Additional Services.

Consultant will not be entitled to payment for Additional Services performed without City’s prior written authorization or for costs to correct Consultant’s errors or omissions.

4. Independent Contractor. The Parties agree that Consultant will act as an independent contractor under this Agreement and will have control of its work and the manner in which the Services are performed. Consultant is not an employee of City and is not entitled to participate in any health, retirement, or similar employee benefits from the City.

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Professional Services Agreement Agreement No. <22-054>
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5. Consultant’s Warranties.

5.1 Consultant warrants that all Services provided under this Agreement will be performed in accordance with generally accepted professional practices and standards for Consultant’s profession in the Bay Area.

5.2 Consultant warrants that all Services provided under this Agreement will be performed in accordance with applicable federal, state, and local laws and regulations, including, but not limited to, conflict of interest laws and City ordinances and policies.

5.3 Consultant warrants that Consultant has no present interest which would conflict in any manner with the performance of Services on the City’s behalf.

5.4 Consultant warrants that it will comply with the City’s Nepotism and Cronyism Policy.

6. Notice. Any notice, billing, or payment required by this Agreement must be made in writing, and sent to the other Party by personal delivery, U.S. Mail, a reliable overnight delivery service, or by email as a PDF (or comparable) file. Notice is effective upon delivery unless otherwise specified. Notice for each Party will be given as follows:

City: Consultant:

City of Hercules MIG, Inc.
111 Civic Drive 800 Hearst Ave
Hercules, CA 94547 Berkeley, CA 94710
(510) 799-8200 (510) 845-7549
Attn: Dante Hall Attn: Cindy Mendoza
[email protected] [email protected]
Copy to: [email protected] Copy to: _____________________ [email protected] Email: _______________________

7. Indemnity. Subsection 7.1 is not applicable to this Agreement if Consultant’s Services are “design professional” services as that term is used and defined in Civil Code section 2782.8.

Subsection 7.2 is applicable to this Agreement if Consultant’s Services are “design professional” services as used and defined in Civil Code section 2782.8.

7.1 To the full extent permitted by law, Consultant will indemnify, defend with counsel acceptable to City, and hold harmless City, its governing body, officers, agents, employees, and volunteers (collectively, “City Indemnitees”) from and against any and all liability, demands, loss, damage, claims, settlements, expenses, and costs (including, without limitation, attorney fees, expert witness fees, and costs and fees of litigation) (collectively, “Liability”) of every nature arising out of or in connection with Consultant’s acts or omissions with respect to this Agreement, except such Liability caused by the active negligence, sole negligence, or willful misconduct of any of the City Indemnitees. This indemnification obligation is not limited by any limitation on the amount or type of damages or compensation payable under Workers’ Compensation or other employee benefit acts, or by insurance coverage limits, and will survive the expiration or early termination of this Agreement. This Subsection 7.1 does not apply if the Services to be provided DocuSign Envelope ID: 83E71697-5A93-4631-8A2E-F18EE53A6557 DocuSign Envelope ID: 96A926F7-6598-4876-BF00-8FB87C5F04AE 639
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under this Agreement are design professional services provided by a licensed architect, landscape architect, professional engineer, or professional land surveyor.

7.2 To the full extent permitted by law, Consultant will indemnify, defend, and hold harmless City, its City Council, officials, officers, agents, employees, and volunteers from and against any and all liability, loss, damage, claims, expenses and costs (including, without limitation, attorney fees and costs and fees of litigation) (collectively, “Liability”) of every nature which arises out of, pertains to, or relates to the negligence, recklessness, or willful misconduct of Consultant in the performance of this Agreement, except such Liability caused by the active negligence, sole negligence or willful misconduct of City. This indemnification obligation is not limited by any limitation on the amount or type of damages or compensation payable under Workers’ Compensation or other employee benefit acts, or by insurance coverage limits, and will survive the expiration or early termination of this Agreement. This Subsection 7.2 is applicable if the Services to be provided under this Agreement are design professional services provided by a licensed architect, landscape architect, professional engineer, or professional land surveyor.

8. Insurance. Before providing any Services under this Agreement, Consultant is required to procure and provide proof of the insurance coverage required by this Section in the form of certificates and endorsements. Each certificate of insurance must state that the coverage afforded by the policy or policies will not be reduced, cancelled or allowed to expire without at least 30 days written notice to City, unless due to nonpayment of premiums, in which case at least 10 days written notice will be made to City. The required insurance must cover the activities of Consultant and its employees or subcontractors relating to or arising from the performance of the Services, and must remain in full force and effect at all times during the term of the Agreement. All required insurance must be issued by an insurer licensed to do business in the State of California, and each such insurer must have an A.M. Best financial strength rating of “A” or better and a financial size rating of “VIII” or better. If Consultant fails to provide any of the required coverage, City may, at its sole discretion, purchase such coverage at Consultant’s expense and deduct the cost from payments due to Consultant.

8.1 The following insurance policies and limits are required for this Agreement:

8.1.1 Commercial General Liability Insurance (“CGL”). CGL insurance issued on an occurrence basis, including coverage of liability arising from Consultant’s acts or omissions in the performance of Services under this Agreement, with limits of at least $1,000,000.00 per occurrence.

8.1.2 Automotive. Commercial automotive liability coverage for owned, nonowned and hired vehicles must provide coverage of at least $1,000,000.00 combined single limit per accident for bodily injury, death, or property damage.

8.1.3 Workers’ Compensation Insurance and Employer’s Liability. The policy must comply with the requirements of the California Workers’ Compensation Insurance and Safety Act, with limits of at least $1,000,000.00. If Consultant is selfinsured, Consultant must provide its duly authorized Certificate of Permission to Self-Insure.

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Professional Services Agreement Agreement No. <22-054>
City Attorney Approved, 082321 Parks and Recreation Facilities Master Plan

8.1.4 Professional Liability. This insurance must insure against Consultant’s errors and omissions in the provision of Services under this Agreement, in an amount no less than $1,000,000.00 combined single limit.

8.2 Subrogation Waiver. Each required policy must include an endorsement that the insurer agrees to waive any right of subrogation it may have against City or the City’s insurers.

8.3 The CGL policy and the automotive liability policy must include the following endorsements:
(1) The City, including its Council, officials, officers, employees, agents, volunteers and consultants (collectively, “Additional Insured”) must be named as an additional insured for all liability arising out of the operations by or on behalf of the named insured, and the policy must protect the Additional Insured against any and all liability for personal injury, death or property damage or destruction arising directly or indirectly in the performance of the Agreement. (2) The inclusion of more than one insured will not operate to impair the rights of one insured against another, and the coverages afforded will apply as though separate policies have been issued to each insured.
(3) The insurance provided is primary and no insurance held or owned by City will be called upon to contribute to a loss.
(4) Any umbrella or excess insurance must contain or be endorsed to contain a provision that such coverage will also apply on a primary or non-contributory basis for the benefit of City before the City’s own insurance or self-insurance will be called upon to protect it as a named insured.

9. Dispute Resolution. In the event that any dispute arises between the Parties in relation to this Agreement, the Parties agree to meet face to face as soon as possible to engage in a good faith effort to resolve the matter informally. In the event that any dispute arises between the Parties in relation to this Agreement, and the dispute is not resolved by informal discussions, the Parties agree to submit the dispute to mediation.

9.1 Either Party may give written notice to the other Party of a request to submit a dispute to mediation, and a mediation session must take place within 60 days after the date that such notice is given, or sooner if reasonably practicable. The Parties will jointly appoint a mutually acceptable mediator. The Parties further agree to share equally the costs of the mediation, except costs incurred by each Party for representation by legal counsel.

9.2 Good faith participation in mediation pursuant to this Section is a condition precedent to either Party commencing litigation in relation to the dispute.

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Professional Services Agreement Agreement No. <22-054>
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10. Early Termination.

10.1 Termination for Convenience. City may terminate this Agreement for convenience by giving 10 calendar days written notice to Consultant. In the event City elects to terminate the Agreement without cause, it will pay Consultant for Services satisfactorily provided up to that date.

10.2 Termination for Cause. If either Party breaches this Agreement by failing to timely or satisfactorily perform any of its obligations or otherwise violates the terms of this Agreement, the other Party may terminate this Agreement by giving written notice five calendar days prior to the effective date of termination, specifying the reason and the effective date of the termination.

Consultant will be entitled to payment for all Services satisfactorily provided up to the effective date of termination, except that the City may deduct from that payment the amount of costs the City incurred, if any, because of Consultant’s breach of the Agreement.

11. Work Product. City will be the sole owner of all rights to any work product in any form which has been prepared by Consultant on City’s behalf pursuant to this Agreement, unless otherwise specified in writing by the Parties.

12. Records. Unless otherwise specified in Attachment A, Consultant will maintain records related to this Agreement for a period of four years from expiration or termination of this Agreement, including records of the Services performed, on a daily basis if necessary.

Consultant’s accounting systems will conform to generally accepted accounting principles, and all records will provide a breakdown of total costs charged under this Agreement, including properly executed payrolls, time records, invoices, and vouchers. Consultant will permit City to inspect and examine Consultant’s books, records, accounts, and any and all data relevant to this Agreement at any reasonable time.

13. General Provisions.

13.1 Assignment and Successors. Consultant may not assign its rights or obligations under this Agreement, in part or in whole, without City’s written consent. This Agreement is binding on Consultant’s and City’s lawful heirs, successors, and permitted assigns.

13.2 Third Party Beneficiaries. There are no intended third-party beneficiaries to this Agreement.

13.3 Nondiscrimination. Consultant will not discriminate in the employment of persons under this Agreement because of race, color, ancestry, national origin, religion, sex, marital status, age, medical condition, disability, or other prohibited basis. All nondiscrimination rules or regulations required by law to be included in this Agreement are incorporated by this reference.

13.3.1 Avoidance of Cronyism and Nepotism. Consultant shall comply with regulations adopted by the City of Hercules to avoid favoritism in the award of contracts. Consultant shall submit a fully executed copy of the “Contractor Acknowledgment of City of Hercules Nepotism and Cronyism Policy” as Attachment C to this Agreement.

13.3.2 Compliance with the California Equal Pay Act. Consultant shall comply with regulations adopted by the City of Hercules to allow for verification of Consultant compliance with DocuSign Envelope ID: 83E71697-5A93-4631-8A2E-F18EE53A6557 DocuSign Envelope ID: 96A926F7-6598-4876-BF00-8FB87C5F04AE 642
Professional Services Agreement Agreement No. <22-054>
City Attorney Approved, 082321 Parks and Recreation Facilities Master Plan

the requirements of the California Equal Pay Act. Consultant shall submit a fully executed copy of the “Contractor Acknowledgment of Compliance with the California Equal Pay Act” as Attachment D to this Agreement.

13.4 Choice of Law and Venue. This Agreement will be governed by California law, and venue will be in the Superior Court of Contra Costa County, and no other place.

13.5 Integration. This Agreement and the documents incorporated in this Agreement constitute the final, complete, and exclusive terms of the agreement between the City and the Consultant.

13.6 Severability. If any provision of this Agreement is determined to be illegal, invalid, or unenforceable, in part or in whole, the remaining provisions of the Agreement will remain in full force and effect.

13.7 Amendment. No amendment or modification of this Agreement will be binding unless it is in a writing duly authorized and signed by the Parties to this Agreement.

13.8 Provisions Deemed Inserted. Every provision of law required to be inserted in this Agreement will be deemed to be inserted, and this Agreement will be construed and enforced as though included. If it is discovered that through mistake or otherwise that any required provision is not inserted, or not correctly inserted, this Agreement will be amended to make the insertion or correction.

13.9 Precedence. If any provision in any document attached to or incorporated in this Agreement conflicts with or is inconsistent with the provisions set forth in the body of this Agreement, the provisions set forth in the body of this Agreement will control over any such conflicting or inconsistent provisions.

13.10 Waiver. No waiver of a breach, failure of any condition, or any right or remedy contained in or granted by the provisions of this Agreement will be effective unless it is in writing and signed by the Party waiving the breach, failure, right, or remedy. No waiver of any breach, failure, right, or remedy will be deemed a waiver of any other breach, failure, right, or remedy, whether or not similar, nor will any waiver constitute a continuing waiver unless the writing so specifies.

13.11 Force Majeure. If either Party is delayed or hindered in or prevented from the performance of any act required under this Agreement because of strikes, lockouts, inability to procure labor or materials, failure of power, riots, insurrection, war, fire or other casualty, or other reason beyond the reasonable control of the Party delayed, excluding financial inability (“Force Majeure Event”), performance of that act will be excused for the period during which the Force Majeure Event prevents such performance, and the period for that performance will be extended for an equivalent period. Delays or failures to perform resulting from lack of funds will not be Force Majeure Events.

13.12 Headings. The headings in this Agreement are included for convenience only and will not affect the construction or interpretation of any provision in this Agreement or any of the rights or obligations of the Parties to this Agreement.

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Professional Services Agreement Agreement No. <22-054>
City Attorney Approved, 082321 Parks and Recreation Facilities Master Plan

13.13 Execution in Counterparts. This Agreement may be executed in any number of counterparts, each of which will be an original, but all of which together will constitute one instrument.

13.14 Authorization. Each individual signing below warrants that he or she is authorized to do so by the Party that he or she represents, and that this Agreement is legally binding on that Party. If Consultant is a corporation, signatures from two officers of the corporation are required pursuant to California Corporation Code section 313.
[Signature page follows.]
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Professional Services Agreement Agreement No. <22-054>
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The Parties agree to this Agreement as witnessed by the signatures below:

CITY: Approved as to form:
s/_______________________________ s/__________________________________ ________________________________ ___________________________________ Dante Hall, City Manager Patrick Tang, City Attorney
Date: ___________________________ Date: ______________________________ Attest:
s/_______________________________
_________________________________
Lauren Berges, City Clerk
Date: ___________________________
CONSULTANT: MIG, Inc.

Business Name
s/_______________________________
_________________________________
Name/Title
Date: ____________________________
s/_______________________________
_________________________________
Name/Title
Date: ____________________________
Attachments:

Attachment A: Scope of Services
Attachment B: Payment
Attachment C: Contractor Acknowledgment of City of Hercules Nepotism and Cronyism Policy Attachment D: Contractor Acknowledgment of Compliance with the California Equal Pay Act DocuSign Envelope ID: 83E71697-5A93-4631-8A2E-F18EE53A6557 CEO/President
9/6/2022
Daniel Iacofano
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9/27/2022
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Professional Services Agreement Agreement No. <22-054>
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Attachment A

SCOPE OF SERVICES
<Detailed description of the required Services attached in the following page(s)> DocuSign Envelope ID: 83E71697-5A93-4631-8A2E-F18EE53A6557 DocuSign Envelope ID: 96A926F7-6598-4876-BF00-8FB87C5F04AE 646
August 31, 2022
Dante Hall, City Manager
Mike Roberts, Public Works Director / City Engineer
City of Hercules
Via Email: [email protected]; [email protected] Subject: Parks and Recreation Facilities Master Plan
Dear Mr. Hall and Mr. Roberts:

Thanks for considering MIG’s proposal for developing a Parks and Recreation Facilities Master Plan for the City of Hercules. MIG is a national leader in park and recreation planning, with expertise in evaluating parks and facilities, identifying community needs, defining realistic and actionable capital improvement plans, and summarizing implementation strategies in clear, concise documents.

The City of Hercules is being proactive in addressing aging park facilities, responding to the need for inclusive parks, and anticipating the future recreation needs of the community. By preparing a Parks Master Plan, the City will gain an understanding of infrastructure and facility needs as well as community priorities for the future. This information will support informed discussion and decision-making related to park needs and opportunities. Through this process, City staff will be better able to strategically allocate resources and leverage grant opportunities and other funding options to ensure that the needs of the community are met into the future.

MIG will collaborate with City staff to identify the appropriate steps and budget for this planning process. This letter confirms our interest in working with the City of Hercules. The attached materials provide an overview of MIG, highlight key staff who will lead this project, and identify our proposed approach and project tasks. It has been refined based on our recent discussion with City staff.

Please let us know if you have any questions or would like an additional information. I can be reached at 503-297-1005 x2100 or [email protected]. We look forward to working with you.

Sincerely,
Cindy Mendoza, CPRP
Principal | Director of Parks + Recreation
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MIG 2 , Inc.

About MIG
MIG, Inc., improves, adapts, and creates organizations, environments, and tools for human development. We are a community of designers, planners, engineers, scientists, and storytellers who engage people in creative problem solving and collective action. For four decades, MIG has worked with public, private, and nonprofit agencies and their constituents to effectively address any issue on the planning and design spectrum related to parks and recreation—concept to construction, strategic plan to master plan, placemaking to open space conservation, ADA accessibility to financial feasibility, and everything in between.

The depth of our expertise encompasses the full range of planning, analysis, outreach, and design to help cities leverage and responsibly manage available resources—ensuring the right balance in the amount, size, types and locations of park land, recreation facilities and services now and in the future.

For this project, we offer the multi-disciplinary expertise of our firmwide team of approximately 300 staff. Key leaders for this effort include:
• Cindy Mendoza, CPRP, is the Director of MIG’s firmwide park and recreation planning practice. She will provide overarching project direction and ensure contract compliance. • Rachel Edmonds, ASLA, is an MIG Landscape Architect and Project Manager. She will oversee the day-to-day tasks, manage the budget and schedule, oversee the facility condition evaluations, and be the point of contact for communications. • Myrna Ortiz is MIG’s Meeting and Outreach Specialist who will provide direction for outreach efforts, present findings at meetings, and advise on outreach and communications with City leaders and Hercules stakeholders and residents.
• Noé Noyola is our lead facilitator for community workshops. Noé is co-Director of MIG’s Equity Studio and will ensure that diverse voices are heard in community meetings. • Heather K. Buczek is a Consulting Principal and MIG’s Director of Accessibility Services. She will oversee the ADA assessment of parks and facilities. • Melissa Erikson, ASLA, PLA, Consulting Principal, is a California-licensed Landscape Architect who will ensure contract compliance for any design work. • MIG Team member, Ballard*King & Associates, lends their expertise to identifying needs for recreation programs, recreation facilities, and facility operations.

This team will draw from MIG’s deep bench of specialists in urban planning, landscape architecture, park design, GIS, recreation operations, graphic communications, community engagement, and green infrastructure, bringing in the right resources where needed for this project.

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MIG, Inc. | Hercules Parks and Recreation Facilities Master Plan 3 Proposed Approach and Workplan
The MIG Team proposes a five-phased approach to evaluate Hercules’ park system and develop the City’s first Parks and Recreation Facilities Master Plan. Public engagement activities and advisory group guidance are built into the planning process to deliver a prioritized community-driven master plan that provides clear direction for phased investments over the next ten years.

The proposed approach is described in five phases.
• Phase 1: State of the Park System
• Phase 2: ADA Assessment (Parks, but not Buildings)
• Phase 3: Park Needs and Opportunities
• Phase 4: Recommendations and Prioritization
• Phase 5: Plan Development
The planning process is intended to evaluate and provide direction for:
• City parks, including their outdoor recreation amenities and facilities; • Indoor recreation facilities with regards to accommodating current and future activities (but not building condition, improvements, ADA access, or maintenance); and • Recreation programs and events as these affect facility needs.

The process references review and involvement from four advisory groups:
• The Project Leadership Team (PLT) will be comprised of the City’s Project Manager and 2-3 key staff to guide the project. This group will meet twice via videoconference: to initiate the project and internally review and discuss the ADA Facility Barrier Report Review. • The project’s Steering Committee will consist of two appointed representatives of the Community and Library Services Commission and two from the Planning Commission joined by members from both the City’s Project Leadership Team. The Steering Committee will review deliverables and provide guidance at key milestones. These public meetings may be held in person or via Zoom. MIG recommends meeting two via videoconference during the planning process.
• The Joint Community and Library Services Commission and Planning Commission will bring together all members of both commissions in one meeting to review the Draft Plan and make separate recommendations to City Council for adoption.
• City Council members will be involved twice in the planning process: once via videoconference interviews in Phase 1 to identify key issues the Master Plan should address; and later via an inperson meeting to review the Draft Plan review prior to adoption. City staff may provide additional updates to Council at key milestones.

PHASE 1: STATE OF THE PARK SYSTEM

1.1. PLT Videoconference: Project Kickoff (Zoom)
MIG will meet with the City’s Project Manager and key staff in a 1.5 or 2-hour [videoconference] meeting to initiate the project and discuss desired project outcomes, available background materials, communication protocols, Steering Committee makeup, engagement strategies, and schedule. MIG will host the call on Zoom and provide an agenda.

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MIG, Inc. | Hercules Parks and Recreation Facilities Master Plan 4

1.2. Background Information Request and Collection
MIG will submit an information request letter and create a shared drive with links for City use in uploading relevant project information. Information includes but is not limited to GIS data, existing inventories, site master plans and air photos, relevant reports and documents, recreation programs data, capital projects list, and policy directions relevant to the Master Plan. MIG has allotted time to make the information request and take a cursory look at materials to know where to incorporate information into other tasks. Client will upload all information to a specified, secure location on MIG’s internal file share server.

1.3. Engagement Strategy and Process Graphic
The MIG team will document an Engagement Strategy to drive participation for the planning process. The strategy will address communication tools, media, and network lists available to promote outreach activities. It will also identify shared roles and responsibilities. MIG will also create a “planning process” graphic that illustrates the project phases and timeline. This helps communicate to the public and advisory groups the intent and trajectory of the Master Plan process.

1.4. System Inventory and GIS Base Map
MIG will cross-check inventory data provided by the City against GIS parks data to create an Excel spreadsheet accounting for City park sites, park acreage and recreation facilities. (Amenities such as tables, benches, trash receptacles, parking spaces, etc., are not counted.) Using GIS data provided by the City, we will produce one draft citywide base map (11” x17”) showing existing City parks, open space, major recreation facilities, and trails on an overlay of information including City planning areas, water bodies, roadways, and schools. The draft inventory and base map will be revised into final form based on one round of consolidated comments from the City.

1.5. Park Tour and Evaluation App (In Person)
MIG will develop a customized, Esri-based Park Evaluation App to use in evaluating City of Hercules parks. It will include a rating system for facility condition, plus track facility location in GIS and record images and comments regarding site quality that can be downloaded in digital reports. As part of this task, MIG will spend one day (6-8 hours) touring representative parks and recreation facilities accompanied by City staff. The tour will provide an opportunity to discuss park strengths, planned development or improvements, maintenance and operations challenges, and recreation needs. The City will schedule and coordinate the site tour, ensuring that staff are available to answer questions.

1.6. Park Condition Assessment (In Person)
This task includes a two-day allowance for two MIG staff to visit City parks, using the Park Evaluation App to photograph and score park conditions. At the completion of all park visits, MIG will download park assessment scores and summarize key findings in a memo to inform the planning process.

1.7. Steering Committee Meeting: Orientation and SWOC (In Person) While in town for the park tour, MIG will meet with the Steering Committee to provide an overview of the planning process and facilitate a discussion of the strengths, weaknesses, DocuSign Envelope ID: 83E71697-5A93-4631-8A2E-F18EE53A6557 DocuSign Envelope ID: 96A926F7-6598-4876-BF00-8FB87C5F04AE 650
MIG, Inc. | Hercules Parks and Recreation Facilities Master Plan 5 opportunities, and challenges for the park system. MIG will provide an agenda and following the meeting, a summary of comments.

1.8. City Council Videoconference Interviews (Zoom)
City staff and MIG will meet individually with City Council members (5) and the City Manager in one-on-one interviews to identify the issues and opportunities that City leaders want addressed in the plan. The City will extend the invitations to Council and coordinate scheduling. MIG will develop a set of interview questions and conduct thirty-minute interviews over a video conference platform such as Zoom. MIG will summarize the findings in a memorandum (pdf).

1.9. Parks & Recreation System Summary
MIG will summarize Phase 1 findings in an attractive, graphic, easy-to-read memo, providing an overview of City parks, facilities, recreation programs and funding resources. MIG will provide a draft document (pdf or Word file), revising this into final form based on one round of consolidated and vetted (no conflicting) City comments.

1.10. Project Management and Administration
This task includes half-hour biweekly progress and coordination videoconferences between MIG and the City’s Project Manager and other City staff as needed for discussion of schedule management, project administration and invoicing, communication, and coordination for project tasks/deliverables.

PHASE 1 DELIVERABLES:
• Project Initiation Meeting Agenda
• Request for Information Letter
• Engagement Strategy
• Draft and Final Park System Base Map and Inventory
• Park Evaluation App and Summary
• Steering Committee Agenda and Summary
• Key Leader Interview Questions and Memo
• Draft and Final Park & Recreation System Summary
PHASE 2: ADA ASSESSMENT

2.1. Prepare Park Facility Diagrams
MIG will prepare diagrams of all City parks and building exteriors using the GIS data provided by the City. The diagram base data will be in a GIS format and will be included in the facility reports described in Task 2.3. The diagrams will be used to indicate the location of ADA barriers identified during the evaluations.

City staff involvement: The City will provide any GIS data delineating the boundaries of each park property.

2.2. Conduct ADA Facility Barrier Evaluations
MIG will evaluate all publicly available portions of Parks’ facilities where members of the public engage in City Parks’ programs, activities, and services (see list of facilities below within this task). This does not include areas that are for authorized personnel only, staff DocuSign Envelope ID: 83E71697-5A93-4631-8A2E-F18EE53A6557 DocuSign Envelope ID: 96A926F7-6598-4876-BF00-8FB87C5F04AE 651
MIG, Inc. | Hercules Parks and Recreation Facilities Master Plan 6 workspaces, maintenance spaces, or facilities located within the public right-of-way. The evaluation of building exteriors will be limited to recreation program areas associated with the building and the accessible route from the building to the program area and will not include the building entry route, parking facilities, interior support facilities, or other exterior facility elements.

The evaluation will identify physical barriers that limit accessibility for the public and compare each facility to the 2019 California Building Code, 2010 ADA Standards, and the 2015 ABA Outdoor Developed Areas Standards. The facility locations to evaluate are as follows:

Facility Inventory
The following list identifies the assumptions for facilities addressed during the site assessment. All assessments will address the accessible route to the program spaces, except where noted otherwise.

Parks
• Bayside Park – restrooms, grass play area, playground; • Duck Pond Park – parking, picnic tables, gazebo, restrooms, grass play area, sports courts (basketball, bocce and horseshoes);
• Foxboro Park – restrooms, playground, picnic facilities, grass play area, sports courts (tennis and basketball);
• Frog Pad Park - picnic facilities, playground;
• Hanna Ranch Park – parking, restrooms, grass play area, sports fields (soccer and baseball);
• Ohlone Dog Park – picnic facilities, dog park, community garden; • Railroad Park – playground, grass play area;
• Refugio Valley Park – parking, picnic tables, gazebo, restrooms, grass play area, playgrounds, sports court (tennis);
• Refugio Valley Linear Trail - includes parcourse elements, benches, and amenities adjacent to the shared-use trail, route from trail to program areas, parking along Refugio Valley Road, and the accessible route from parking to the trail, but does not include the shared-use trail. Parking along the northside of Refugio Valley Road included in the evaluation is at the following locations:
 Across from Hanna Ranch Park and Hanna Ranch ES.
 Between Midship Drive and Southwind Drive
 Across from the Hercules Middle-High School Buildings  Across from the Hercules Middle-High School Stadium
• Shasta Park –picnic facilities, playground, grass play area; • Shoreline Park - picnic facilities, restrooms, grass play area, playground; • Sierra Park – picnic facilities, grass play area, workout elements; and • Woodfield Park - picnic facilities, restrooms, grass play area, playground, sports courts (tennis and basketball).

Recreation Program Areas – Building Exteriors Only
• Hercules Community Swim Center - pool and supporting exterior amenities; DocuSign Envelope ID: 83E71697-5A93-4631-8A2E-F18EE53A6557 DocuSign Envelope ID: 96A926F7-6598-4876-BF00-8FB87C5F04AE 652
MIG, Inc. | Hercules Parks and Recreation Facilities Master Plan 7 • Foxboro Community Center
• Senior Center - routes leading to building entrance and parking area; • Ohlone Community Center – small grass patch; and
• Teen Center - pedestrian trail from Redwood Road to Teen Center and Hercules Community Swim Center parking area.

City staff involvement: City staff will be responsible for providing access to any locked City facilities – restrooms and building exterior spaces that are fenced off. Otherwise, MIG staff will not require accompaniment by a city staff person.

2.3. Prepare ADA Facility Barrier Reports
MIG will produce a report for each facility with a master list detailing each barrier identified within state and federal accessibility regulations. The report will include:
• Barrier Identification Table: Lists specific barriers encountered during the evaluation process. Barriers will be organized by architectural element and located by reference number on the facility diagram. MIG will include as-built dimensions and required dimension or condition, and code reference citations.
• Conceptual Solution: MIG will provide a conceptual solution to resolving the barrier in text format and will recommend alternate solutions or equivalent facilitation when feasible.
• Planning Cost Estimate: Each barrier removal action, such as the replacement of a doorknob with lever-type door hardware, is assigned a cost. Costs represent a planning level estimate based on the cost of construction, which can be used to determine the cost for removing barriers at facilities.
• Reference Diagram: The report will include a reference diagram locating the barriers on a floor plan, site plan, or aerial photograph of the facility. • Photograph: Images of the facility barriers will be included with the barrier identification details.

City staff involvement: Review report before Task 2.4 and provide one set of consolidated edits if needed.

2.4. PLT Videoconference: ADA Facility Barrier Report Review (Zoom) MIG will meet with the PLT to finalize the observations included in the reports, to answer questions, to prepare for the pass of barrier mitigation tracking data, and to discuss how the City will use the reports in the development of an ADA transition plan. The meeting will assist City staff in determining appropriate responses to mitigating barriers, either through modification of the facilities, by relocating programs, or by other programmatic solutions.

City staff involvement: Participation of staff responsible for maintaining the facilities in one review session.

2.5. ADA Implementation Data
MIG will finalize the barrier prioritization and provide the City with GIS data containing all the barrier information for facilities, including relevant codes, barrier removal actions, planning cost estimates, and site photographs. The same information will also be provided in a DocuSign Envelope ID: 83E71697-5A93-4631-8A2E-F18EE53A6557 DocuSign Envelope ID: 96A926F7-6598-4876-BF00-8FB87C5F04AE 653
MIG, Inc. | Hercules Parks and Recreation Facilities Master Plan 8 companion Excel workbook. The data provided is intended to be the living document for tracking, mapping, and monitoring the barrier removal efforts.

City staff involvement: Review and use the data provided for the barrier mitigation tracking and the future development of a transition plan schedule.

2.6. Project Management and Administration
This task includes half-hour biweekly progress and coordination videoconferences between MIG and the City’s Project Manager and other City staff as needed for discussion of schedule management, project administration and invoicing, communication, and coordination for project tasks/deliverables.

PHASE 2 DELIVERABLES:
• Park Diagrams for reporting
• ADA Barrier Evaluations
• PDF of the ADA Facility Barrier Reports for review before the PLT meeting • PLT Meeting Agenda and Materials
• GIS data for parks barriers in a geodatabase format with a companion Excel document PHASE 3: PARK NEEDS AND OPPORTUNITIES

3.1. Park and Recreation Questionnaire (English)
MIG will develop a Parks and Recreation Questionnaire to gather feedback from the community on recreation and park use, priorities and needs. Available in English, the online questionnaire will be tablet, computer, and smartphone friendly. MIG will draft the questionnaire, revise it based on one round of City comments, and program questions online.

MIG will host the questionnaire for four or five (4) weeks, providing a link and QR code to the City for web posting and distribution. City staff will be responsible for advertising the questionnaire. At its completion, MIG will summarize key findings.

3.2. Community Workshop: Park and Recreation Needs (In Person) MIG will host a public workshop to solicit input regarding the community’s park and recreation needs. City staff will identify and book the venue location and publicize the meeting via newsletters, website, and social media channels. MIG will create an agenda and meeting materials, and following the meeting, provide a summary memo of key comments.

3.3. Level of Service, Distribution and Gap Analysis
MIG will evaluate access to three different types of recreation facilities or opportunities (e.g., sports fields, picnic areas, trails, neighborhood parks) through a technical mapping analysis using ArcGIS Network Analyst™. The geographic analysis will consider physical barriers to park access, focusing on the different ways that city residents travel to parks and facilities, including walking, cycling, car and transit, using existing transportation networks. A service area for each site or facility will be depicted graphically, identifying opportunities to increase the area served by improving access. MIG will create up to three hard copy maps illustrating facility distribution, using this information to identify potential park and trail needs and DocuSign Envelope ID: 83E71697-5A93-4631-8A2E-F18EE53A6557 DocuSign Envelope ID: 96A926F7-6598-4876-BF00-8FB87C5F04AE 654
MIG, Inc. | Hercules Parks and Recreation Facilities Master Plan 9 facility needs through a level of service analysis. Following City review of the maps, findings will be incorporated into the Needs Assessment Summary.

3.4. Recreation Facilities and Programs Analysis
The MIG Team will review recreation data and existing information on the Hercules Community Center and Pool, Ohlone Community Center, Foxboro Community Center, Teen Center, Senior Center, and sports fields to identify needs for more or different types of facilities and programmable space. The analysis includes a brief review of the City’s program service areas to discuss needs to expand or enhance recreation programs and events.

Findings will be incorporated into the Needs Assessment Summary.

3.5. Evolving Trends and Demographics
The MIG Team will use publicly available demographic and recreation data, plus our knowledge of recreation trends, to project changing needs for parks and recreation facilities.

This will include an overview of key trends and innovations for providing parks, facilities, and programs in built-out communities. Findings will be incorporated into the Needs Assessment Summary.

3.6. Needs Assessment Summary
MIG will create a summary report of Phase 2 findings, which combines the results of the technical analysis and engagement findings to identify community needs for parks, recreation facilities, trails, and programs. The Needs Assessment will identify overarching key themes across all outreach and engagement tasks. It will summarize existing service levels and service gaps. MIG will provide a draft Summary Report and revise this based on one round of consolidated comments from City staff

3.7. Steering Committee Videoconference: Needs (Zoom)
MIG will create an agenda and PowerPoint and facilitate a videoconference meeting on needs assessment findings and their implications for future facilities and services. This includes an overview of cross-cutting themes from engagement activities, proposed level of service standards, and needs assessment. MIG will provide an agenda, and following the meeting, email an action-item summary.

3.8. Project Management and Administration
This task includes half-hour biweekly progress and coordination videoconferences between MIG and the City’s Project Manager and other City staff as needed for discussion of schedule management, project administration and invoicing, communication, and coordination for project tasks/deliverables.

DocuSign Envelope ID: 83E71697-5A93-4631-8A2E-F18EE53A6557 DocuSign Envelope ID: 96A926F7-6598-4876-BF00-8FB87C5F04AE 655
MIG, Inc. | Hercules Parks and Recreation Facilities Master Plan 10 PHASE 3 DELIVERABLES:
• Draft and final online questionnaire, link and QR code, 2-3 social media graphics, and summary • Community Connections agenda and consolidated summary • Draft and Final Access Analysis Maps (3 maps)
• Draft and Final Needs Assessment Summary
• Steering Committee Agenda, PowerPoint, and Summary
PHASE 4: RECOMMENDATIONS AND PRIORITIZATION

4.1 Systemwide Strategies
Using the General Plan goal framework, MIG will define key strategies related to the systemwide enhancement and management of the park system. MIG will summarize these recommendations for City review. Comments will be incorporated into the Administrative Draft Master Plan.

4.2 Site Recommendations and Map
MIG will identify site recommendations for existing (and, if relevant, proposed parks). Site recommendations will address potential land acquisition/site expansion, development, renovations, improvements, added elements, and potential partner projects. Site recommendations will be defined in a matrix format and spatially depicted on the 11” x17” base map to illustrate the mapped locations of projects or programmatic changes. MIG will draft the site recommendations and map for City review. Comments will be incorporated into the CIP and Administrative Draft Master Plan.

4.3 CIP / Capital and Operations Costs
MIG will create a capital projects list and cost matrix (Excel spreadsheet) to summarize a 10- year CIP. This includes identifying the planning-level costs for recommended capital projects, along with facility lifecycle replacement costs and maintenance costs for each project. The model will incorporate cost data based on MIG’s experience in managing park construction projects. MIG will provide a draft cost spreadsheet and revise it based on one round of edits from City staff.

4.4 Online Prioritization Activity
MIG will develop an online prioritization activity, inviting participants to help identify project priorities by making hypothetical investment choices in various park projects, programming, and different types of improvements. The data collected will help identify the right investment level and priorities for project phasing. MIG will develop questions for City review, program the activity online, refine it based on one round of City comments, host it for 2 weeks, and summarize results in conjunction with Task 4.5 findings. City staff will be responsible for promoting the online activity.

4.5 Steering Committee: Prioritization Open House (In Person) MIG will develop materials and facilitate one in-person workshop that is co-hosted by the Steering Committee to discuss project priorities. In conjunction with the online prioritization activity, the data collected will inform the action plan. MIG will facilitate the workshop, and DocuSign Envelope ID: 83E71697-5A93-4631-8A2E-F18EE53A6557 DocuSign Envelope ID: 96A926F7-6598-4876-BF00-8FB87C5F04AE 656
MIG, Inc. | Hercules Parks and Recreation Facilities Master Plan 11 afterwards, summarize findings in conjunction with Task 4.4. City staff will be responsible for promoting the workshops, securing locations, and recruiting participants.

4.6 Action Plan
MIG will create a phased action plan that identifies short, medium, and long-term capital projects. The Action Plan will be incorporated into the Administrative Draft Plan for City review.

4.7 Funding Strategies
MIG will review budget data provided by the City to identify potential funding sources and to support City Parks and Recreation capital projects and operations in the short and long term.

The information will be incorporated into the Administrative Draft Plan for City review.

4.8 Project Management and Administration
This task includes biweekly progress and coordination videoconferences between MIG and the City’s Project Manager, schedule management and invoicing, project administration, communication, and coordination.

PHASE 4 DELIVERABLES:
• Draft Systemwide Policy Recommendations
• Draft Site Recommendations and Project Map
• Draft Capital Project List and Costs (spreadsheet)
• Online Community Prioritization Activity and Consolidated Summary • Community Workshop Materials
• Action Plan (in Administrative Draft Plan)
• Funding Strategies (in Administrative Draft Plan)
PHASE 5: PLAN DEVELOPMENT

5.1 CEQA Memo
MIG will prepare a memo that explains CEQA options for Master Plan approval. Following a brief consultation with the City Manager or City attorney (via a phone call or short team videoconference), the memo will conclude with a recommendation about the level of environmental documentation required for CEQA (i.e., Categorical Exemption (CE), Initial Study/Negative or Mitigated Negative Declaration (IS/ND or MND).

5.2 Administrative Draft Master Plan
MIG will create a full draft Master Plan, formatted as an attractive, easy-to-read document for review. The plan will be illustrated with graphics, maps, and photos so that City staff may use it as a communication’s tool to build community support for implementation. Prior to developing the Master Plan, MIG will create an outline for City review and buy-in on plan content. MIG will then draft the document, providing an electronic file (PDF) and comments log (Excel) to the City for internal review.

DocuSign Envelope ID: 83E71697-5A93-4631-8A2E-F18EE53A6557 DocuSign Envelope ID: 96A926F7-6598-4876-BF00-8FB87C5F04AE 657
MIG, Inc. | Hercules Parks and Recreation Facilities Master Plan 12

5.3 Draft Master Plan
Using one set of City consolidated comments, MIG will revised the document and add an Executive Summary, providing a web-ready pdf of the revised document to the City for posting and distribution.

5.4 Joint Commission Meeting: Draft Plan Review (In Person) MIG will present the Draft Master Plan to all members of the Community and Library Services Commission and Planning Commission to gather input as it relates to the upcoming Draft Master Plan presentation to City Council.

5.5 City Council Meeting: Draft Plan Review (In Person) MIG will update the Joint Commission PowerPoint to include Joint Commission feedback and present the Draft Plan at a City Council work session or meeting for review, discussion, and potential adoption.

5.6 Final Master Plan
Based on one set of consolidated comments provided by the City, MIG will finalize the Master Plan, providing a print-ready pdf and all original files to the City.

5.7 Project Management and Administration
This task includes biweekly progress and coordination videoconferences between MIG and the City’s Project Manager, schedule management and invoicing, project administration, communication, and coordination.

PHASE 5 DELIVERABLES:
• Master Plan Outline
• Administrative Draft Master Plan (60-125 pages, including graphics, maps, and appendices) • Draft Master Plan
• Joint Commission Meeting PowerPoint
• Council PowerPoint
• Final Plan
• Transmittal of final GIS data

OPTIONAL TASK
OPT.1 Community Connections (3 videoconferences and training) To understand the needs of different community groups, MIG will host up to three 1-hour “Community Connection” videoconferences. These informal meetings with existing community groups provide focused opportunities to learn about unique priorities and needs. They also provide an opportunity to involve traditionally underrepresented groups in the planning process. MIG will host one training for City staff and Commissioners to facilitate additional “Community Connections” either via videoconference or in person. MIG will coordinate with City staff in identifying potential community groups for meetings. With City staff support, MIG will coordinate scheduling of these meetings and send out invitations to participants. MIG will provide an agenda and data input tool for City staff and Commissioners to use in summarizing feedback. Following the meetings, MIG will provide a consolidated summary of key comments heard across all meetings.

DocuSign Envelope ID: 83E71697-5A93-4631-8A2E-F18EE53A6557 DocuSign Envelope ID: 96A926F7-6598-4876-BF00-8FB87C5F04AE 658
MIG, Inc. | Hercules Parks and Recreation Facilities Master Plan 13 Scope Assumptions
The scope described on the previous pages is based on several assumptions noted below.  The project management budget assumes a 7- to 9-month project. It includes one hour per month for calls, emails, and coordination meetings between MIG and the City’s Project Manager as noted in each phase.
 To ensure cost efficiencies, MIG combines in-person and videoconference meetings as noted in the scope and budget. Field work will be conducted in person with social distancing and following public health protocols in place.
 The City will provide consolidated documents and GIS data based on MIG’s request for information, using MIG’s Egnyte portal and links for the transmission of materials.  The City will arrange, advertise, promote, host, recruit participants, schedule, and identify locations for public meetings, stakeholder interviews, and outreach activities. MIG will attend, facilitate, take notes, and summarize findings.  The City will be responsible for all website updates, posts to social media, press releases, communications and promotion of the online questionnaire and public meetings.  MIG will provide digital/electronic files (pdfs) of all project memorandums, master plans, and PowerPoint presentations.
 Drafts and final documents will be provided where noted in the scope. If not specified, it is presumed that any edits will be incorporated into subsequent tasks. For each round of revisions, City staff will provide a single, consolidated set of comments in track changes for Word files, pdf comments, or in a comments log for all other documents where requested.

Proposed Budget
Project costs are identified by phase below. These are inclusive of labor and direct costs for travel and materials.
# Phase Estimated Cost
1 State of the Park System $40,200
2 ADA Assessment $40,700
3 Park Needs and Opportunities $40,880
4 Recommendations and Prioritization $32,310
5 Plan Development $32,090
Total* $186,180
OPT Focus Group Meetings (if desired) $4,665
*Includes a 5% markup on direct expenses.

DocuSign Envelope ID: 83E71697-5A93-4631-8A2E-F18EE53A6557 DocuSign Envelope ID: 96A926F7-6598-4876-BF00-8FB87C5F04AE 659
Hercules Parks and Recreation Facilities Master Plan
4 11 18 25 2 9 16 23 30 6 13 20 27 4 11 18 25 1 8 15 22 29 5 12 19 26 5 12 19 26 2 9 16 23 30 5 12 19 26 Task 1: State of the Park System

1.1 PLT Videoconference: Project Kickoff

1.2 Background Information Request and Collection

1.3 Engagement Strategy and Process Graphic

1.4 System Inventory and GIS Base Map

1.5 Park Tour and Evaluation App *

1.6 Park Condition Assessment *

1.7 Steering Committee Meeting: Orientation and SWOC *

1.8 City Council Videoconference Interviews * *

1.90 Parks & Recreation System Summary

1.10 Project Management and Administration
Task 2: ADA Assessment

2.1 Prepare Park Facility Diagrams

2.2 Conduct ADA Facility Barrier Evaluations *

2.3 Prepare ADA Facility Barrier Reports

2.4 PLT Videoconference: ADA Facility Barrier Report Review *

2.5 ADA Implementation Data

2.9 Project Management and Administration
Task 3: Parks Needs & Opportunities

3.1 Park and Recreation Questionnaire * * * *

3.2 Community Workshop * *

3.3 Level of Service, Distribution and Gap Analysis

3.4 Recreation Facilities and Programs Analysis

3.5 Evolving Trends and Demographics

3.6 Needs Assessment Summary

3.7 Steering Committee Videoconference: Needs *

3.8 Project Management and Administration
Task 4: Recommendations and Prioritization

4.1 Systemwide Strategies

4.2 Site Recommendations and Map

4.3 CIP / Capital and Operations Costs

4.4 Online Prioritization Activity * *

4.5 Steering Committee: Prioritization Open House *

4.6 Action Plan

4.7 Funding Strategies

4.8 Project Management and Administration
Task 5: Plan Development

5.1 CEQA Memo

5.2 Administrative Draft Master Plan

5.3 Draft Master Plan

5.4 Joint Commission Meeting: Draft Plan Review *

5.5 City Council Meeting: Draft Plan Review *

5.6 Final Master Plan

5.7 Project Management and Administration
Anticipated Schedule
* references anticipated meeting/event dates. The time in green reflects the entire period needed for meeting or outreach preparation, event, and documentation. 8/31/22 September October November December January February March April May MIG, Inc. City of Hercules - Parks and Recreation Facilities Master Plan | Schedule DocuSign Envelope ID: 83E71697-5A93-4631-8A2E-F18EE53A6557 DocuSign Envelope ID: 96A926F7-6598-4876-BF00-8FB87C5F04AE 660
Professional Services Agreement Agreement No. <22-054>
City Attorney Approved, 082321 Payment
Attachment B

PAYMENT
< Prices/rates that will be used to determine payments to the Consultant attached in the following page(s)>
DocuSign Envelope ID: 83E71697-5A93-4631-8A2E-F18EE53A6557 DocuSign Envelope ID: 96A926F7-6598-4876-BF00-8FB87C5F04AE 661
City of Scappoose – Parks Master Plan Comprehensive Update MIG Hourly Rate Sheet
PROJECT PERSONNEL $/Hr
Cindy Mendoza, Director 185
Rachel Edmonds, Project Manager 135
Heather Buczek, ADA Consulting Principal 195
Lena Roper, ADA Specialist 150
Alison Lee, Parks and Recreation Planner 145
Tucker McPhaul, Designer/Planner 110
Myrna Ortiz, Meeting/ Outreach Specialist 135
Noe Noyola, Facilitation Lead 155
Zachary Likins, GIS Specialist 135
Ray Pendro, CEQA Specialist 205
Melissa Erikson, Consulting Principal 210
Additional MIG professional time will be billed
according to the hourly rates as presented
below.

STAFF BILLING RATES
CATEGORY $/HR
Senior Planner 165-185
Planner 145-165
Senior Landscape Architect 155-175
Landscape Architect 135-155
Landscape Designer 115-135
Associate Planner II 110-145
Associate Planner I 95-110
Assistant Planner 75-90
Support Staff 75-90

EXPENSES
CATEGORY Basis
Commercial travel Cost+5%
Automobile travel Current IRS rate
Lodging/Meals Cost+5%
BW Photocopy (letter) $0.25/ea
Color copies (letter) $1.50/ea
Color copies (tabloid) $2.50/ea
Color poster plotting $8.50/sf
Commercial report reproduction Cost+5%
Other (lab, aerial photos, etc.) Cost+5%
DocuSign Envelope ID: 83E71697-5A93-4631-8A2E-F18EE53A6557 DocuSign Envelope ID: 96A926F7-6598-4876-BF00-8FB87C5F04AE 662

CONTRACTOR ACKNOWLEDGMENT OF CITY OF HERCULES NEPOTISM AND CRONYISM POLICY SECTION A:

To be completed by City Representative Prior to Distribution to Contractor:

City Representative Phone Project Spec No.

Department Contract/Proposal Name
SECTION B:

This is an Original Revised form (check one). If Original, complete all that applies. If revised, complete Contractor Name and include any changed data.

Contractor/Consultant Name Phone
Street Address City State Zip
Type of Submission (Check One) Bid Proposal Qualification Contract/Agreement/Amendment SECTION C:

The undersigned Contractor’s Representative acknowledges by his or her signature the following:

It is the policy of the City of Hercules to avoid favoritism or discrimination in making decisions to award contracts for supplies, construction, maintenance, professional or other services. The awarding of a contract or the approval of payments or expenses under a contract by a City Official, to a person with whom she or he has a family relationship or a consensual romantic and/or sexual relationship, is regarded as a violation of this Section. Nepotism and cronyism as defined in Section 2-3.402 are hereby prohibited from City contracting decisions to the full extent permitted by law.

I have read Hercules Ordinance Number 486 and certify that I/we have not knowingly, nor will I/we in the future, enter into a contract with the City of Hercules or accept payment from the City of Hercules when to do so is in violation of Ordinance Number 486.

If circumstances require changing the information on this form while I/we have a bid, proposal, or qualifications under review, or while we are under contract with the City, we will amend this form within five business days.

Signature Date
Print Name of Signer Position
SECTION D:

To Be Completed by Administrative Services Department with the City of Hercules after Submission of the Completed Form by Contractor
Date Received by City By
Agreement 22-054
Resolution No._______
Dante Hall 510-799-8200
City Manager Parks & Recreation Facilities
Master Plan
DocuSign Envelope ID: 83E71697-5A93-4631-8A2E-F18EE53A6557 CA
510-7549
Daniel Iacofano
800 Hearst
9/6/2022
CEO/President
Berkeley
MIG, Inc.
94710
DocuSign Envelope ID: 96A926F7-6598-4876-BF00-8FB87C5F04AE Lauren Berges
City Clerk / Public Information Officer
9/27/2022
22-081

XXXXXXXX
510-845-7549
663

CONTRACTOR ACKNOWLEDGMENT OF COMPLIANCE WITH CALIFORNIA EQUAL PAY ACT SECTION A:

To be completed by City Representative Prior to Distribution to Contractor:

City Representative Phone Project Spec No.

Department Contract/Proposal Name __
SECTION B:

This is an Original Revised form (check one). If Original, complete all that applies. If revised, complete Contractor Name and include any changed data.

Contractor/Consultant Name____________________ Phone
Street Address City State Zip
Type of Submission (Check One) Bid Proposal Qualification Contract/Agreement/Amendment SECTION C:

The undersigned Contractor’s Representative acknowledges by his or her signature the following:

It is the policy of the City of Hercules to avoid awarding contracts for supplies, construction, maintenance, professional or other services to contractors who are not in compliance with the equal pay requirements of the California Equal Pay Act.. The awarding of a contract or the approval of payments or expenses under a contract by a City Official, to a person or contractor not in compliance with the California Equal Pay Act, is regarded as a violation of this Section.

I have read Hercules Ordinance Number 534 and certify that I/we have not in the past 5 years been found to be in violation of the California Equal pay Act, and I/we have not knowingly, nor will I/we in the future, enter into a contract with the City of Hercules or accept payment from the City of Hercules when to do so is in violation of Ordinance Number 534 .

If circumstances require changing the information on this form while I/we have a bid, proposal, or qualifications under review, or while we are under contract with the City, we will amend this form within five business days.

Signature Date
Print Name of Signer Position
SECTION D:

To Be Completed by Administrative Services Department with the City of Hercules after Submission of the Completed Form by Contractor
Date Received by City By
Dante Hall 510-799-8200
Agreement No. 22-054
Resolution No. ________
City Manager Parks & Recreation
Facilities Master Plan
DocuSign Envelope ID: 83E71697-5A93-4631-8A2E-F18EE53A6557 MIG, Inc.

Berkeley CA 94710
Daniel Iacofano
510-845-7549
9/6/2022
800 Hearst
CEO/President
DocuSign Envelope ID: 96A926F7-6598-4876-BF00-8FB87C5F04AE Lauren Berges
9/27/2022
City Clerk / Public Information Officer
22-081
664
Certificate Of Completion
Envelope Id: 96A926F765984876BF008FB87C5F04AE Status: Completed Subject: Contract -22-054_MIG_Hercules Parks & Recreation Facilities Master Plan Contract Source Envelope:

Document Pages: 27 Signatures: 5 Envelope Originator:

Certificate Pages: 6 Initials: 0 A. Clarisse Saechao
AutoNav: Enabled
EnvelopeId Stamping: Enabled
Time Zone: (UTC-08:00) Pacific Time (US & Canada)
[email protected]
IP Address: 66.7.246.210
Record Tracking
Status: Original
9/22/2022 1:29:23 PM
Holder: A. Clarisse Saechao
[email protected]
Location: DocuSign
Security Appliance Status: Connected Pool: StateLocal
Storage Appliance Status: Connected Pool: City of Hercules Location: DocuSign Signer Events Signature Timestamp
Patrick Tang
[email protected]
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 66.7.246.210
Sent: 9/22/2022 1:40:05 PM
Resent: 9/26/2022 12:02:33 PM
Viewed: 9/27/2022 5:28:25 PM
Signed: 9/27/2022 5:29:14 PM
Electronic Record and Signature Disclosure:

Accepted: 9/27/2022 5:28:25 PM
ID: 3185915c-2d56-4cca-b8b6-2be4bf47ef01
Dante Hall
[email protected]
City Manager
Security Level: Email, Account Authentication
(None) Signature Adoption: Pre-selected Style
Using IP Address: 66.7.246.210
Sent: 9/22/2022 1:40:05 PM
Resent: 9/26/2022 12:02:32 PM
Viewed: 9/26/2022 1:05:20 PM
Signed: 9/26/2022 1:05:40 PM
Electronic Record and Signature Disclosure:

Accepted: 9/26/2022 1:05:20 PM
ID: 7af4c54f-f8b9-4fa3-8667-372a152e9190
Lauren Berges
[email protected]
City Clerk / Public Information Officer
City of Hercules
Security Level: Email, Account Authentication
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All notices and disclosures will be sent to you electronically Electronic Record and Signature Disclosure created on: 7/30/2020 6:36:10 PM Parties agreed to: Patrick Tang, Dante Hall, Christopher Roke, Timothy Rood, Daniel Iacofano, Michael Roberts, Edwin Gato 668
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STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of September 13, 2022
TO: The Mayor and Members of the City Council
SUBMITTED BY: Dante Hall, City Manager
Michael Roberts, Public Works Director/City Engineer
SUBJECT: Agreement with MIG in the Amount of $190,845 to Complete a Parks Master Plan and the Americans with Disabilities Act (ADA) Assessment for Park Facilities
RECOMMENDED ACTION:

Staff recommends that the City Council:

1. Adopt a Resolution authorizing the City Manager to execute an agreement with MIG for a not to exceed amount of $190,845 to complete a Parks Master Plan and Americans with Disabilities Act (ADA) Assessment for Park Facilities

2. Approve an appropriation of $15,845 in General Fund monies to fully fund the Americans with Disabilities Act (ADA) assessment for Park Facilities COMMISSION/SUBCOMMITTEE ACTION AND RECOMMENDATION:

There was no commission or subcommittee review of this item. However, both the Community and Library Services Commission and Planning Commission will play key supporting roles to the City Council in the creation of the Parks Master Plan.

FISCAL IMPACT OF RECOMMENDATION:

The Adopted FY 22-23 Budget includes $150K of General Fund monies for the Parks Master Plan and $25K for an ADA assessment from Lighting & Landscaping Assessment District 83-2, Zone 10 “City-wide Parks.” Given the low fund balance in Zone 10, staff is recommending an appropriation of $15,845 from the General Fund to complete the ADA assessment and fully fund the contract amount.

DISCUSSION:

Parks and recreation facilities in Hercules are public spaces where all members of the community are welcome. Outdoor parks provide the opportunity to exercise, play sports, commune with nature, socialize with loved ones, and participate in community-building events. Indoor recreation facilities house a variety of structured activities including court sports, fitness, dance, art, and music activities.

Hercules is well known for its diverse parks that are located throughout the City, and its recreation facilities house programs that are highly valued by the community. 671
The last decade has been challenging financially for the City. During this time, capital maintenance in parks was deferred and only the most pressing repairs were made on a pay-as-you-go, annual basis.

As a result, the parks in Hercules are showing their age and wear and tear, which has accumulated over time. Additionally, trends in parks and facilities usage have changed, as can be seen by the increase in popularity of pickleball. Much of this demand is driven by demographics, which has also changed over the past decade. In recent public meetings, it has been voiced that the younger population needs more recreational opportunities in Hercules.

Given the gradual financial recovery of the City and one-time American Rescue Plan Act (ARPA) funding, staff is recommending that a Parks Master Plan be completed at this time. The Parks Master Plan will provide the information for the City that is needed to take a proactive approach over the next decade in addressing aging park facilities, responding to the need for inclusive parks, and anticipating the future recreation needs of the community. It will capture the infrastructure and facility needs as well as community priorities for the future. This information will support informed discussion and decision-making related to park needs and opportunities. This will allow the City to strategically allocate resources and leverage grant opportunities to ensure the needs of the community are met in the future.

Specifically, the Parks Master Plan will evaluate and provide direction for:
 City parks, including their outdoor recreation amenities and facilities and ADA compliance;  Indoor recreation facilities with regards to accommodating current and future activities (but not building condition, improvements, ADA access, or maintenance); and  Recreation programs and events as these affect facility needs.

The Parks Master Plan process will include a robust public participation and outreach effort, including a potential Steering Committee, made up of Community and Library Services Commissioners, Planning Commissioners, and members of the community. The Steering Committee would be advisory to the City Council. Staff will provide more detail and a recommendation for the structure of the Steering Committee at a future City Council meeting.

The specific phases, scope, and associated budget that will be used to develop the Parks Master Plan consist of:

Phase 1: State of the Park System
 Phase 2: ADA Assessment (Parks, but not Buildings)
 Phase 3: Park Needs and Opportunities
 Phase 4: Recommendations and Prioritization
 Phase 5: Plan Development
Please refer to the attached contract and scope of work attached to this report.

ATTACHMENTS:

1. Resolution Authorizing Agreement with MIG Inc.to complete a Parks Master Plan and ADA Assessment

2. Consultant Agreement
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Resolution No. 22-081

HERCULES CITY COUNCIL
RESOLUTION NO. 22-081

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERCULES,

AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH MIG INC. FOR AN AMOUNT NOT TO EXCEED $190,845 TO COMPLETE A PARKS

MASTER PLAN AND THE AMERICANS WITH DISABILITIES ACT (ADA)

ASSESSMENT FOR PARK FACILITIES
WHEREAS, Parks and recreation facilities in the City of Hercules are public spaces where all members of the community are welcome; and
WHEREAS, Outdoor parks provide the opportunity to exercise, play sports, commune with nature, socialize, and participate in community-building events; and WHEREAS, Hercules is well known for its diverse parks that are located throughout the City, and its recreation facilities house programs that are highly valued by the community; and WHEREAS, Capital maintenance in parks was deferred, and only the most pressing repairs were made on a pay-as-you-go basis during a financially challenging period for the City; and
WHEREAS, The parks in Hercules are showing their age and wear and tear; and WHEREAS, A Parks Master Plan and Americans with Disabilities Act (ADA) Assessment will provide the information for the City that is needed to take a proactive approach in addressing aging park facilities, responding to the need for inclusive parks, and anticipating the future recreation needs of the community.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hercules as follows:

1. That the City Council hereby authorizes the City Manager to execute an agreement authorizing the City Manager to execute an agreement with MIG for a not to exceed the amount of $190,845 to complete a Parks Master Plan and American with Disabilities Act (ADA) Assessment for Park Facilities; and

2. That the City Council hereby authorizes an additional appropriation of $15,845 in General Fund monies to fully fund the Americans with Disabilities Act (ADA) assessment for Park Facilities.

DocuSign Envelope ID: 295F349A-8768-43DC-8327-4AA2FF8571C0 673

Resolution No. 22-081
The foregoing Resolution was duly and regularly adopted at a regular meeting of the City Council of the City of Hercules held on the 13th day of September 2022 by the following vote of the Council:

AYES: Council Members D. Romero, C. Kelley, Vice Mayor Walker-Griffin, Mayor D.

Bailey
NOES: None.

ABSTAIN: None.

ABSENT: T. Grimsley
____________________________
Dion Bailey, Mayor
ATTEST:
________________________________
Lauren Berges
City Clerk
DocuSign Envelope ID: 295F349A-8768-43DC-8327-4AA2FF8571C0 674

DISCUSSION AND/OR ACTION

AGENDA ITEMS

1. 22-697

2. 22-699

3. 22-698

4. 22-700

5. 22-701

STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of November 14, 2023
TO: Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Eibleis Melendez, City Clerk
SUBJECT: Commission and Committee Appointments

RECOMMENDED ACTION
Consider making appointments to Hercules Commissions, Regional Boards and Committees for the start of new two (2) year terms and to fill expired terms.

DISCUSSION:

The City’s Commissions (listed below) have seats with term expirations of December 31, 2023. The City maintains an open recruitment for applicants to fill the seats. The application deadline for Planning Commission, Finance Commission, Community Library Services Commission, the Contra Costa County Library Commission, Contra Costa Mosquito and Vector Control Board and the CCTA Citizens Advisory Committee, was October 31, 2023. The vacancies were advertised on the City’s website, the local paper, posted to City Boards and pushed through social media platforms. The City Council held a Special Meeting to conduct interviews earlier this evening. (November 14, 2023).

Local Commissions
Planning Commission – Two (2) terms ending December 2023 The Planning Commission meets the first and third Mondays of every month at 7 p.m.

The Commission is advisory to the Council and has statutory duties imposed by State law. Five (5) applications were received. The two current Commissioners with expiring terms are: Hector Rubio; Robert Schaufenbil;
Applicants for the Planning Commission are: Corean Todd, Dennis Esselsagoe, Erica Brown, Hector Rubio, Robert Schaufenbil
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22-697
Finance Commission – Three (3) terms ending December 2023 The Finance Commission meets bi-monthly on the third Wednesday at 7 p.m. The Commission is advisory to the Council. Two (2) applications were received. The two current Commissioners with expiring terms are: Dennis Esselsagoe and Terrel Kingwood; The third vacancy is due to the automatic resignation of Orit Samson due to attendance requirements whose term expires 12/31/24.

Applicants for Finance Commission are: Corean Todd, Dennis Esselsagoe Community & Library Services Commission – Two (2) terms, (1 Student Commissioner, and 1 Commissioner) ending December 2023
The Community and Library Services Commission meets on the second Monday of every month at 7:00 p.m. The Commission is advisory to the Council. Three (3) applications were received in total; Two (2) applications for One (1) Commissioner term and one (1) application for one (1) Student Commissioner term. The Commissioners with expiring terms are Dr. Evangelia Ward-Jackson and Monique Hernandez (Student Commissioner). Student Commissioner Monique Hernandez is seeking reappointment and running unopposed. Staff recommends that Student Commissioner Hernandez be reappointed to their incumbency and forgo an interview process considering she was just appointed at the August 8, 2023 City Council meeting.

Applicants for Community & Library Services Commission are: Erica Brown and Dr.

Evangelia Ward- Jackson and Monique Hernandez
Regional Boards and Committees:

The Contra Costa County Library Commission Seat
The Commission meetings are the third Tuesday of every other month at 7 p.m. The Commission was created to serve in an advisory capacity to the Board of Supervisors and the County Librarian. The Contra Costa County Library Commission seat for the City of Hercules became vacant when Jo Ellen Marcotte’s term expired on June 30, 2023. She was appointed in December 2022 to finish an unexpired term. One (1) application has been received. Jo Ellen Marcotte has requested to be an alternate on the commission.

Applicant for the Contra Costa County Library Commission is: Donna Rennie 676
Contra Costa Mosquito & Vector Control District Board – One (1) term The Board meets via Zoom on the second Monday at 7 p.m. every other month. No applications have been received for this board. The Trustee with the expiring term is Damian Wong.

Contra Costa Transportation Authority’s Citizens Advisory Committee – One (1) term
Meetings are held in Walnut Creek on the fourth Wednesday of each month at 6 p.m.

The CCTA maintains a standing Citizens Advisory Committee. This seat has been vacant. Three (3) applications have been received.

Applicants for the Contra Costa Transportation Authority’s Citizens Advisory Committee are: Corean Todd, Dennis Esselsagoe and Erica Brown
FISCAL IMPACT:

None.

ATTACHMENTS:

None.
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DISCUSSION AND/OR ACTION

AGENDA ITEM

2. 22-699

REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of November 14, 2023
TO: Mayor and Members of the City Council
SUBMITTED BY: Patrick Tang, City Attorney
Christina Lawrence, Associate Attorney
SUBJECT: Additional Information on Project Labor Agreements

RECOMMENDED ACTION
Review and discuss report; provide direction to City attorney and staff on the questions outlined in the report.

BACKGROUND:

At the Council meeting of August 8, 2023, the Council directed staff to schedule a discussion regarding project labor agreements for City construction projects. At a special meeting of the City Council on October 3, 2023, the City attorney and staff provided the Council with a general overview of project labor agreements and the Council requested further information on such agreements, including (1) the definition of a “project” subject to a project labor agreement, (2) information on the number of completed capital improvement projects of the City (over $1 million, in the last 5-10 years) performed by union versus non-union prime contractors; and (3) information on project labor agreements of nearby cities of a similar size. This report addresses each of those items and requests further direction from the Council on key questions.

DISCUSSION:

A project labor agreement or project stabilization agreement (collectively referred to herein as a “PLA”) is a pre-hire collective bargaining agreement with one or more labor organizations that establishes the terms and conditions of employment on a particular construction project or for certain construction projects.

Several public agencies around the country, state, and region have adopted policies pertaining to PLAs and/or agency-wide or single project PLAs. This report responds to Council’s request for additional information about PLAs and seeks further direction from the Council as to whether it would like to develop a policy pertaining to PLAs and/or to negotiate and enter into a PLA.
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22-699
It is important to keep in mind that the specific terms of a PLA are negotiated by the parties (e.g., City, local Building and Construction Trades Council (“BTC”), and unions affiliated with the BTC). Thus, if the Council decides to develop a policy and/or negotiate a PLA, the City attorney and staff will need direction from the Council on its desired goals and parameters.

A. Follow Up Information on Project Labor Agreements

1. Projects Subject to a PLA
PLAs are specifically permitted for use in the “building and construction industry,” and thus, they are used to establish terms and conditions of employment on a construction project. A PLA can specify the construction project(s) that are subject to any such agreement, or it can specify parameters for application (e.g., dollar threshold, multi-craft, or multi-year project(s)).

The City may require the use of a PLA on City construction projects, such as capital improvement projects (i.e., projects contracted for by the City involving any public structure, building, road, or other public improvement). The City may also require the use of a PLA on public/private projects (e.g., where City sells property for development or leases property requiring rehabilitation and the use of a PLA is a condition of the sale or lease, or where a development is subject to a City development agreement).

Based on a comparison of four citywide PLAs in the region, it is much more common to see a citywide agreement apply to construction projects awarded by the city. All of the citywide PLAs reviewed by the City Attorney’s office apply to “Construction Contracts” awarded on a “Project.”
A “Project” is often defined as “all construction projects awarded by the City that have an engineer’s estimate in excess of” a certain dollar threshold.

A “Construction Contract” is defined as “the public works or improvement contract(s)…awarded by the City that are necessary to complete a Project.” Of the citywide PLAs reviewed by the City Attorney’s Office, none of them define the term “construction.” One PLA policy reviewed by the City Attorney’s office applies to “public works construction projects” and defines that term as follows:

A “public works construction project” is defined to include “all site preparation, construction, alteration, demolition, installation, improvement, painting, repair or off-haul work as defined in Labor Code Section 1720.3, paid for in whole or in part by City funds with a projected construction cost of [$600,000] or more and employing workers in three or more crafts.”
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If the Council decides to move forward with a PLA policy or Citywide PLA and wants to clarify what constitutes a “construction project,” the City Attorney’s office and staff can negotiate with the local BTC on this point based on Council’s direction. For example, the Council may wish to model the definition of a “construction project” based on the definition of “public project” under the Uniform Public Construction Cost Accounting Act in the Public Contract Code or the definition of “public works” under the Labor Code. (For more information on these definitions, see Attachment 1.)

2. City’s Past Projects
Council has requested information regarding the City’s completed capital improvement projects (exceeding $1,000,000 from the last 10 years) performed by union contractors versus non-union contractors. Staff has identified the following capital improvement projects:
 Bay Trail East (2016) - $7.0M
 Bay Trail West (2019) - $1.3M
 Path To Transit (2017) - $12.6M
 Energy Conservation Measures - $4.0M
 2021 Rehabilitation Project – Sycamore - $1.0M
 2019 Pavement Repair Project - $1.2M
 2018 Pavement Maintenance - $1.0M
 2017 Pavement Maintenance - $1.0M
The City does not currently maintain information related to whether prime contractors on City projects are affiliated with union(s). However, based on the City attorney’s and staff’s independent research, it appears that at least five of the eight projects listed above may have been performed by union-affiliated prime contractors. These projects include the Bay Trail East Project, Path to Transit Project, 2021 Rehabilitation Project – Sycamore, 2019 Pavement Repair Project, and 2017 Pavement Maintenance Project.

3. Comparison of Other Local Agencies
The Council has requested information on how nearby local agencies of a similar size have handled project labor agreements. The City Attorney’s office has reviewed how the following cities have handled project labor agreements: Martinez, Watsonville, Richmond, El Cerrito, and American Canyon.
a. Policies
The Cities of Martinez and Watsonville adopted policies pertaining to project labor agreements. These policies identify: (1) the application of the project labor agreement policy (i.e., which projects are subject to a project labor agreement) and (2) required provisions for any such project labor agreement. Additionally, these policies are structured such that the successful bidder (i.e., the prime contractor) on a qualifying 680
project is required to negotiate and enter into a project labor agreement as a condition of award of the construction contract. The City Attorney’s office has prepared the following chart comparing the policies of Martinez and Watsonville:

City of Martinez City of Watsonville
Application The PLA policy applies to “all City
construction projects awarded by the
City with a bid amount of more than
$250,000.” Additionally, “at any time that
the City Council is considering approval
of the City’s capital improvement project
(“CIP”) budget as part of the City’s overall
budget, the City Council may identify
specific projects included in that CIP
budget which the City Council directs be
awarded in accordance with and subject
to [the] policy irrespective of the
estimated cost of said project(s).”
The PLA ordinance applies “to all public works
construction projects unless the existence of a
project labor agreement will jeopardize State,
Federal or other public funding sources.” A
“public works construction project” is defined to
include “all site preparation, construction,
alteration, demolition, installation,
improvement, painting, repair or off-haul work
as defined in Labor Code Section 1720.3, paid
for in whole or in part by City funds with a
projected construction cost of [$600,000] or
more and employing workers in three or more
crafts.”
Implementation For construction projects subject to the policy, as a condition of contract award,
the successful bidder must negotiate and
sign a PLA with the local BTC or other
labor organization(s) or labor union(s)
approved by the City, unless the Council
determines otherwise. The PLA is subject
to approval as to form by the City
Council.

For projects subject to the policy, as a condition
of award, the successful bidder must execute a
master project labor agreement which will be
filed with the City Clerk. The successful bidder
and its contractors and subcontractors at all
tiers must “sign an agreement to be bound and
to enter into a project labor agreement.”
Required
Provisions
The policy includes provisions that a PLA
generally must contain, but states that
provisions for individual projects may
vary due to special circumstances,
requirements of the project’s funding
source(s), or other reasons, as
determined by the City Manager.

The ordinance includes provisions that a PLA
must contain, unless the Council, by majority
vote, determines otherwise.

The City of Martinez adopted its PLA policy in 2014. In 2019, it negotiated and entered into a citywide project labor agreement. The City’s policy served as a basis for negotiating the terms of the agreement, but the City ultimately decided to deviate from some of the policy requirements to reach a project labor agreement that was acceptable to all parties.

The policy approach may require less staff resources, given that the successful bidder is ultimately responsible for negotiating an agreement subject to City approval. However, this structure could conceivably complicate the contract award process if the successful bidder on a project is unable to reach an agreement with the relevant labor organization(s).

Additionally, given that the City of Martinez eventually opted to negotiate a citywide agreement, it is unclear whether the policy approach is effective. If the City would like to pursue the policy approach, it will be important to ensure that the policy requirements are 681
reflective of terms that are acceptable to all parties, including local labor organizations.

Otherwise, the City may find itself in a situation where a successful bidder on a qualifying project is unable to effectuate or comply with the PLA policy. b. Citywide PLAs
The Cities of Martinez, Richmond, El Cerrito, and American Canyon have adopted citywide project labor or project stabilization agreements. In adopting a citywide agreement, each city has negotiated directly with the relevant BTC in the region and entered into an agreement that applies for a specific term. Under a citywide agreement, the successful bidder on a project subject to the PLA and its subcontractors of every tier must agree to be bound by the PLA.

Citywide PLAs in the region appear to be based on the template agreement attached as Attachment 2 and contain provisions similar, if not identical, to those therein. Based on the City attorney’s and staff’s research, this template was prepared by the Contra Costa Building and Construction Trades Council and served as a starting point for negotiations for the City of El Cerrito’s project stabilization agreement. A summary of each Article of the template agreement is set forth below.

1. Definitions: Article 1 includes definitions for terms that appear throughout the agreement, including the definition of a “project.”

2. Scope of Agreement: Article 2 specifies the scope and application of the agreement, including what constitutes “covered work” under the agreement and what is “excluded” from application of the agreement. Common types of “covered work” under a PLA include, but are not limited to, all site preparation, surveying, construction, alteration, demolition, installation, improvement, remediation, retrofit, painting or repair of buildings, structures and other works, and related activities for the project that is within the craft jurisdiction of one of the unions and that is directly or indirectly part of the project. Some common exclusions include work performed by the City’s own employees as permitted by the Public Contract Code, work performed by non-construction craft employees, and work substantially funded by any federal, state, local or other public agency that prohibits the use of project labor agreements on projects receiving its funding. (See Sections

2.3 and 2.4 of Attachment 2 for a full breakdown of typical “covered work” and “exclusions.”)

3. Effect of Agreement: Article 3 provides that all signatories to the agreement and all contractors and subcontractors performing work under a “construction contract” for a “project” agree to be bound by the terms of the PLA.

4. Work Stoppages, Strikes, Sympathy Strikes and Lockouts: Article 4 provides that there will be no work stoppages, strikes, sympathy strikes, lockouts, or other labor disruptions for the duration of the Project and includes expedited arbitration procedures if such a disruption arises.

5. Pre-Construction Conference: Article 5 includes terms relating to pre-construction conferences and review meetings for a project.

6. No Discrimination: Article 6 requires compliance with all anti-discrimination provisions of federal, state, and local law.

7. Union Security: Article 7 recognizes unions as the sole bargaining representative of all craft employees working within the scope of the PLA and requires all employees of a contractor working on a project to become members of the appropriate union. 682

8. Referral: Article 8 requires the use of union registration facilities and referral systems when filling craft job requirements, outlines the procedures applicable if union(s) are unable to fill a requisition, and includes a local hiring goal.

9. Wages and Benefits: Article 9 specifies terms relating to worker wages and benefits, including the application of terms and conditions of employment established by “master agreements” of the applicable unions on the project.

10. Apprentices: Article 10 requires the contractor to employ apprentices from a state-approved Joint Apprenticeship Training Program in ratios consistent with requirements of the Labor Code.

11. Helmets to Hardhats: Article 11 requires the contractor and unions to agree to use the services of the Center for Military Recruitment, Assessment and Veterans Employment and its “Helmets to Hardhats” program to facilitate veterans’ entry into the building and construction trades.

12. Compliance: Article 12 provides that the contractor and unions are responsible for investigating and monitoring compliance with the wage and benefit requirements of the PLA and that the public agency will monitor and enforce compliance with state prevailing wage requirements and the contractors’ compliance with the PLA.

13. Grievance Arbitration Procedure: Article 13 outlines the dispute resolution procedures applicable to the PLA.

14. Work Assignments and Jurisdictional Disputes: Article 14 acknowledges that the assignment of “covered work” is the sole responsibility of the contractor, provides that such assignments will be in accordance with the “Plan for the Settlement of Jurisdictional Disputes in the Construction Industry,” and sets forth dispute resolution procedures in the event of jurisdictional disputes.

15. Management Rights: Article 15 provides that the contractor will retain authority for the management of its operations.

16. Drug and Alcohol Testing: Article 16 prohibits the use, sale, transfer, purchase and/or possession of a controlled substance, alcohol, and/or firearms during the workday and provides that drug and alcohol testing will be conducted pursuant to specified policies.

17. Savings Clause: Article 17 specifies what happens if a provision of the PLA is determined to be void or illegal by a court of competent jurisdiction.

18. Term: Article 18 provides that the PLA has a five-year term and will automatically “roll over” for an additional five-year term in the absence of any changes to the agreement. Some cities have elected to eliminate the automatic roll over, such that the term will expire unless the parties agree to extend the term. Other cities have retained the automatic roll over, but include language to reflect the parties’ ability to terminate the agreement at any time.

19. Miscellaneous Provisions: Article 19 includes miscellaneous contractual provisions, such as authorizing execution of the agreement in counterparts, explaining the purpose of headings used throughout the agreement, and acknowledging that the agreement is the product of negotiations and has been reviewed by legal counsel.

The provisions that tend to vary among agencies include: the applicability of the agreement (e.g., definition of project); what constitutes “covered work” and “exclusions” thereto; and local hiring goals. The City Attorney’s office has prepared the following chart comparing some key provisions from the citywide agreements of Martinez, Richmond, El Cerrito, and American Canyon.
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City of Martinez City of Richmond City of El Cerrito City of American Canyon Applicability &
Definition of
“Project”
PLA governs all “Construction
Contracts” awarded on a
Project.

Definitions:
“Construction Contract” means
the public works or
improvement contract(s)
awarded by the City that are
necessary to complete a Project.
“Project” means “all
construction projects awarded
by the City that have an
engineer’s estimate of or in
excess of [$1,000,000];
however, if the engineer’s
estimate is under [$1,000,000]
but over [$750,000], the City
shall include language in its bid
solicitation indicating that if the
bid awarded for the project is
over [$1,000,000], including any
addenda or alternates, the
project shall be covered by this
Agreement.”
The city and the BTC may
mutually agree to add additional
projects.

PSA governs all “Construction
Contracts” awarded on the
“Project.”
Definitions:
“Construction Contract” means
the public works or improvement
contract(s) awarded by the City
that are necessary to complete the
Project.
“Project” means all construction
projects paid for in whole or in
part out of City funds, where the
engineer’s estimate or bid amount
exceeds $1,000,000.

The city and the BTC may mutually
agree to add additional projects.

PSA governs all “Construction
Contracts” that include “Covered
Work” awarded on or after the
effective date of the PSA for a
“Project” until “Completion,”
unless otherwise set forth in the
PSA.

Definitions:
“Construction Contract” means
the public works or improvement
contract(s) awarded or entered
into by the City that are necessary
for Completion of a Project.
“Project” means City projects
funded in whole or in part with
City funds, where either the
engineer’s estimate of the total
cost of the project or the
cumulative bid amount(s)
submitted by the contractor(s)
awarded the “Construction
Contract(s)” exceeds $1,000,000.

All “Construction Contracts”
required to complete an
integrated Project are considered
in determining whether the dollar
threshold is met.

The city and the BTC may mutually
agree to add additional projects.

PSA governs all “Construction
Contracts” that include “Covered
Work” awarded on or after the
effective date of the PSA for a
“Project” until “Completion,” unless
otherwise set forth in the PSA.

Definitions:
“Construction Contract” means the
public works or improvement
contract(s) awarded and entered
into by the City that are necessary
for Completion of a Project.
“Project” means all city
construction projects where either
the engineer’s estimate of the total
cost of the project, or the
cumulative bid amount(s)
submitted by the contractor(s)
awarded a Construction Contract(s)
for the Project, exceeds the limit for
awarding “informal bids” in
accordance with the California
Uniform Public Construction Cost
Accounting Act, currently $200,000,
but subject to change. All
“Construction Contracts” required
to complete an integrated Project
are considered in determining
whether the threshold is met.

The city and the BTC may mutually
agree to add additional projects.
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Local Hiring
Employment of Residents of the
Local Area: “It is the objective of
the parties that not less than
[25%] of all hours worked on
the Project, including
apprentice hours, be worked by
residents of the Local Area.” For
this PLA, Local Area means the
communities of the City of
Martinez and Contra Costa
County to be served by the
Project.

Apprentices from the Local
Area: “The objective of the
parties is that at least [25%] of
the apprentices employed on
the Project will be from the
“Local Area.”
PLA provides that is the objective
of the parties that not less than
35% of all hours worked on the
Project be worked by residents of
the “Local Area,” defined as the
City of Richmond and specifies
that the unions will work with
RichmondBUILD to recruit skilled
craft persons to fulfill the
requirements of the Contractors.

It also outlines a two-step process
for the Contractor in an effort to
employ Richmond Domiciled
Residents.

PLA acknowledges that it is in the
interest of the parties to facilitate
employment of “Local Area”
residents (i.e., residents of Contra
Costa County) and provides that
residents will be referred for work
covered by the agreement, but
does not specify a particular
percentage goal.

N/A
Agreement
Term
Effective for a five-year term
and, unless extended by the
parties, will terminate
thereafter. During the fifth year,
the city will meet with the BTC
to discuss the potential
extension of the agreement and
any necessary changes thereto
and (2) the City Manager will
prepare a report for the City
Council’s review assessing the
effectiveness and efficiency of
work performed under the
agreement and assessing the
effectiveness of the agreement
in accomplishing the goals
outlined therein.

Effective for a five-year term.

Prior to each five-year anniversary
of the effective date, the city and
the BTC will meet to discuss
proposed changes, if any. Absent
changes, the PLA will roll over for
an additional five years.

Effective for a five-year term.

Prior to each five-year anniversary
of the effective date, the city and
BTC will meet to discuss proposed
changes, if any. Absent changes or
termination, the PLA will roll over
for an additional five years.

Effective for a five-year term.

Prior to each five-year anniversary
of the effective date, the city and
BTC will meet to discuss proposed
changes, if any.

City and BTC each retain the right
to terminate the Agreement prior
to the expiration of the Term,
provided however that the
terminating party provides at least
90 days’ notice to the other party.

Absent termination or negotiation
of a modified agreement, the
Agreement will continue for a
successive five-year term.
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B. Direction from Council
The City attorney and staff request direction from the Council on the following key questions:

1. If the Council decides to move forward, does it want to adopt a PLA policy and/or does it want to negotiate a PLA (either citywide or for specific project(s))?
Options include, but are not limited to:
 The Council may choose to adopt a policy, pursuant to which, individual PLAs are negotiated by the successful bidder for each project subject to the policy as a condition of award. The policy can specify which projects are subject to a PLA and the required provisions for any such PLA.  The Council may choose to negotiate a Citywide PLA that identifies which City projects are subject to the PLA, either by naming specific projects or by defining a “project” to reflect the Council’s desired parameters (e.g., dollar threshold, number of construction crafts involved, and/or anticipated project duration).
 The Council may choose to negotiate a PLA for a specific City project.

2. If the Council decides to proceed, how does it want to define a “project” subject to a PLA policy or PLA?
Options include, but are not limited to:
 Define as all construction projects awarded by the City that have an engineer’s estimate or bid amount that exceeds $1,000,000.  Define as all City construction projects where either the engineer’s estimate of the total cost of the project, or the cumulative bid amount(s) submitted by the contractor(s) awarded a “Construction Contract(s)” for the Project, exceeds $1,000,000. For this option, all “Construction Contracts” required to complete an integrated project are considered in determining whether the dollar threshold is met. A “Construction Contract” is typically defined as the public works or improvement contract(s) awarded by the City that are necessary to complete the project.
 Define based on one of the options above, but add additional parameters to capture projects that are complex (i.e., multi-craft) or of a long duration (i.e., multi-year). If Council pursues this option, the City attorney and staff will need direction on what the Council considers “complex” (e.g., the 686
number of crafts/trades involved) or a “long duration” (e.g., 12 months, 24 months, etc.).
 Define as construction projects selected by Council each year as part of the Capital Improvement Program (“CIP”).
 Define as specific public works construction project(s) identified by the City (e.g., list of projects). The following is a sample list of future construction projects that staff anticipates will cost $1 million or more in the current CIP:

Street Repair Projects (Approx. $800K to $1.2M, typically yearly) Upper Sycamore Sewer Trunk Replacement (Approx. $4M, in 3-4 years)
The Hercules Hub (Approx. $100M, dependent upon securing funding, complex, likely will be constructed in phases, but note that, if state or federal funding is involved, applicability of a PLA may depend on the funding source requirements.)

3. Key Terms. To the extent that the Council wants to pursue a PLA policy or PLA, the City attorney and staff will need direction from the Council on the Council’s goals and objectives, including input on the following questions:
a. Does the Council want to include local hire requirements? If so, what are the Council’s goals in this regard? How would it like to define the “Local Area”? b. Does the Council want to include terms regarding the “Helmets to Hardhats” program, similar to Attachment 2?
c. If the City opts to pursue a Citywide PLA, what is Council’s desired term for the agreement? The template included as Attachment 2 specifies a term of five years and will automatically renew for a subsequent five-year term absent any changes to the agreement. One of the cities surveyed elected to eliminate the automatic renewal, such that the agreement will terminate at the end of the five-year term unless the parties affirmatively agree to extend it. Some of the other cities opted to include express language about the parties’ ability to terminate the agreement. d. Are the template terms acceptable to Council or does the Council want to direct staff to negotiate changes?
e. Are there any other objectives of the Council for purposes of developing a PLA policy or PLA?
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CONCLUSION:

If Council wishes to develop a PLA policy or a PLA, the City attorney and staff request that the Council provide direction on the questions outlined above and authorize the City attorney and staff to coordinate with the local BTC to develop a draft policy or agreement for the Council’s review and approval.

FISCAL IMPACT:

There is no specific fiscal impact to this action. However, requiring the use of a PLA may have a fiscal impact on the construction projects subject to the PLA (e.g., potential for increased project costs resulting from potential reduction in competition during bidding process). Additionally, implementation and administration of a PLA will require additional staff time and resources. Several cities have reported needing to hire one full time employee to manage PLAs.

Attachments:

1. Sample Definitions

2. Contra Costa Building & Construction Trades Council “Project Stabilization Agreement” Template

3. Report to the City Council from the October 3, 2023 Meeting 688
Attachment 1
Sample Definitions
The following definitions are provided for example purposes. If the Council decides to move forward with a PLA policy or PLA, it may wish to structure the application of the policy or PLA based on one or more of these examples. For instance, a PLA policy or PLA could apply to “public works construction projects” and that term could be defined in a manner similar to one of the following examples.

Public Contract Code § 1101 defines a “public works contract” as follows:
“Public works contract,” as used in this part, means an agreement for the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind.

Public Contract Code § 22002 defines “public project” as follows:
“Public project” means any of the following:
(1) Construction, reconstruction, erection, alteration, renovation, improvement, demolition, and repair work involving any publicly owned, leased, or operated facility. (2) Painting or repainting of any publicly owned, leased, or operated facility. (3) In the case of a publicly owned utility system, “public project” shall include only the construction, erection, improvement, or repair of dams, reservoirs, powerplants, and electrical transmission lines of 230,000 volts and higher.

Labor Code § 1720 defines “public works” as follows:
(1) Construction, alteration, demolition, installation, or repair work done under contract and paid for in whole or in part out of public funds, except work done directly by a public utility company pursuant to order of the Public Utilities Commission or other public authority. For purposes of this paragraph, “construction” includes work performed during the design, site assessment, feasibility study, and other preconstruction phases of construction, including, but not limited to, inspection and land surveying work, regardless of whether any further construction work is conducted, and work performed during the postconstruction phases of construction, including, but not limited to, all cleanup work at the jobsite. For purposes of this paragraph, “installation” includes, but is not limited to, the assembly and disassembly of freestanding and affixed modular office systems.
(2) Work done for irrigation, utility, reclamation, and improvement districts, and other districts of this type. “Public works” does not include the operation of the irrigation or 689
drainage system of an irrigation or reclamation district, except as used in Section 1778 relating to retaining wages.
(3) Street, sewer, or other improvement work done under the direction and supervision or by the authority of an officer or public body of the state, or of a political subdivision or district thereof, whether the political subdivision or district operates under a freeholder’s charter or not.
(4) The laying of carpet done under a building lease-maintenance contract and paid for out of public funds.
(5) The laying of carpet in a public building done under contract and paid for in whole or in part out of public funds.
(6) Public transportation demonstration projects authorized pursuant to Section 143 of the Streets and Highways Code.
(7) (A) Infrastructure project grants from the California Advanced Services Fund pursuant to Section 281 of the Public Utilities Code.
(B) For purposes of this paragraph, the Public Utilities Commission is not the awarding body or the body awarding the contract, as defined in Section 1722. (8) Tree removal work done in the execution of a project under paragraph (1). 690
Project Stabilization Agreement
for the [CITY/COUNTY/DISTRICT] of 2

PROJECT STABILIZATION AGREEMENT
FOR THE [CITY/COUNTY/DISTRICT] OF

INTRODUCTION/FINDINGS
This Project Stabilization Agreement is entered into this day of , 20 , by and between the [CITY/COUNTY/DISTRICT] of (hereinafter the “[CITY/COUNTY/DISTRICT]”), together with contractors and subcontractors of all tiers, who shall become signatory to this Agreement by signing the “Agreement to be Bound” (Addendum A) (referred to collectively herein as the “Contractors/Employers”), and the Contra Costa County Building & Construction Trades Council (hereinafter the “Council”) and its affiliated local Unions that have executed this Agreement (referred to collectively herein as the “Union” or “Unions”).

The purpose of this Agreement is to promote the efficiency of construction operations for the [CITY/COUNTY/DISTRICT] of through the use of skilled labor resulting in quality construction outcomes, and to provide for the peaceful settlement of labor disputes and grievances without strikes or lockouts, thereby promoting the public interest in assuring the timely and economical completion of the Project.
[Findings Omitted]

NOW, THEREFORE, IT IS AGREED BETWEEN AND AMONG THE PARTIES HERETO, AS FOLLOWS:

ARTICLE I

DEFINITIONS

1.1 "Agreement" means this Project Stabilization Agreement.

1.2 "Agreement to be Bound" means the agreement (attached hereto as Addendum A) that shall be executed by each and every Contractor(s)/Employer(s) as a condition of working on the Project.

1.3 "[CITY/COUNTY/DISTRICT]" means the [CITY/COUNTY/DISTRICT] of and its governing board, officers, agents and employees, including managerial personnel.

1.4 "Completion" means that point at which there is Final Acceptance by the [CITY/COUNTY/DISTRICT] of a Construction Contract and the [CITY/COUNTY/DISTRICT] has filed a Notice of Completion. For purposes of this definition, "Final Acceptance" means that point in time at which the [CITY/COUNTY/DISTRICT] has determined upon final inspection that the work has been completed in all respects and all required contract documents, contract drawings, warranties, certificates, manuals and data have been submitted and training completed in accordance with the contract documents and the [CITY/COUNTY/DISTRICT] has executed a written acceptance of the work.
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1.5 “Construction Contract” means the public works or improvement contract(s) (including design-bid, design-build, lease-leaseback or other contracts under which construction of the Project is done) awarded by the [CITY/COUNTY/DISTRICT] that are necessary to complete the Project.

1.6 "Contractor(s)/Employer(s)" or "Contractor(s)" or "Employer(s)" means any individual, firm, partnership or corporation (including the prime contractor, general contractor, construction manager, project manager, design-build entity, lease-leaseback entity or equivalent entity), or combination thereof, including joint ventures, and their successors and assigns, that is an independent business enterprise and enters into a contract with the [CITY/COUNTY/DISTRICT] with respect to the construction of any part of the Project, under contract terms and conditions that are approved by the [CITY/COUNTY/DISTRICT] and that incorporate this Agreement, and all contractors and subcontractors of any tier.

1.7 “Council” means the Contra Costa County Building & Construction Trades Council.

1.8 “Master Agreement” or “Schedule A” means the Master Collective Bargaining Agreement of each craft Union signatory hereto.

1.9 "Project" means [EITHER: the [CITY/COUNTY/DISTRICT] public works construction projects identified on Addendum B hereto OR: all [CITY/COUNTY/DISTRICT] public works construction projects, subject to the Public Contract Code, where either the engineer’s estimate of the total cost of the project, or the cumulative bid amounts submitted by all contractor(s) awarded Construction Contracts for the Project, exceeds .

All Construction Contracts required to complete an integrated Project shall be considered in determining whether this threshold is met.] The [CITY/COUNTY/DISTRICT] and the Council may mutually agree in writing to add additional projects or components to be covered by this Agreement. The term “Project” applies to each and all projects as defined in this section, whether used in the singular or plural herein.

1.10 “Project Manager” means the person(s) or entity(ies) designated by the [CITY/COUNTY/DISTRICT] to oversee all phases of construction on the Project and the implementation of this Agreement.

1.11 “Union” or “Unions” means the Contra Costa Building and Construction Trades Council and its affiliated Unions signatory to this Agreement, acting on their own behalf and on behalf of their respective affiliates and member organizations whose names are subscribed hereto and who have through their officers executed this Agreement.

ARTICLE II

SCOPE OF AGREEMENT

2.1 Parties: This Agreement applies to and is limited to all Contractors/Employers performing Construction Contracts on the Project (including subcontractors at any tier), and their successors and assigns, the [CITY/COUNTY/DISTRICT], the Council and its affiliated Unions signatory to this Agreement.
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2.2 Applicability: This Agreement governs all Construction Contracts awarded on the Project. For purposes of this Agreement, Construction Contracts shall be considered Completed as set forth in Section 1.4, except when the [CITY/COUNTY/DISTRICT] directs a Contractor to engage in repairs, warranty work, punch list work, or modifications under a Construction Contract or when a Contractor performs work under a change order for a Construction Contract.

2.3 Covered Work: This Agreement covers, without limitation, all site preparation, surveying, construction, alteration, demolition, installation, improvement, remediation, retrofit, painting or repair of buildings, structures and other works, and related activities for the Project that is within the craft jurisdiction of one of the Unions and that is directly or indirectly part of the Project, including, without limitation to the following examples, geotechnical and exploratory drilling, temporary HVAC, landscaping and temporary fencing, soils and materials testing and inspection, pipelines (including those in linear corridors built to serve the Project), pumps, pump stations, start-up, modular furniture installation, and final clean-up. Covered Work includes work done for the Project in temporary yards, dedicated sites, or areas adjacent to the Project, and at any on-site or off-site batch plant constructed to supply materials to the Project.

2.3.1 This Agreement applies to any start-up, calibration, commissioning performance testing, repair, maintenance, and operational revisions to systems and/or subsystems for the Project performed after Completion, unless performed by [CITY/COUNTY/DISTRICT] employees.

2.3.2 This Agreement covers all on-site fabrication work over which the [CITY/COUNTY/DISTRICT], Contractor(s) or subcontractor(s) possess the right of control (including work done for the Project in any temporary yard or area established for the Project).

This Agreement also covers any off-site work, including fabrication, that is traditionally performed by any of the Unions and is directly or indirectly part of the Project, provided such work is covered by a Master Agreement or local addenda to a national agreement of the applicable Union(s).

2.3.3 Except for the delivery of supplies, equipment or materials that are stockpiled for later use, this Agreement covers all construction trucking work, including the hauling and delivery of ready-mix, asphalt, aggregate, sand, soil or other fill or similar material that is directly incorporated into the construction process as well as the off-hauling of soil, sand, gravel, rocks, concrete, asphalt, excavation materials, construction debris and excess fill, material and/or mud. Contractor(s)/Employer(s), including brokers, of persons providing construction trucking work shall provide certified payroll records to the [CITY/COUNTY/DISTRICT] within ten (10) days of written request or as required by the bid specifications.

2.3.4 Work covered by this Agreement within the following craft jurisdictions shall be performed under the terms of their National Agreements as follows: the National Transient Lodge (NTL) Articles of Agreement, the National Stack/Chimney Agreement, the National Cooling Tower Agreement, the National Agreement of Elevator Constructors, and any instrument calibration work and loop checking shall be performed under the terms of the UA/IBEW Joint National Agreement for Instrument and Control Systems Technicians, with the exception that Articles IV, XIII and XIV of this Agreement shall apply to such work. 693
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2.4 Exclusions: The following shall be excluded from the scope of this Agreement.

2.4.1 This Agreement shall not apply to a Contractor/Employer’s non-construction craft executives, managerial employees, supervisors above the level of general foreman (except those covered by existing Master Agreements), and administrative personnel.

2.4.2 This Agreement shall not apply to any non-Project work performed on or near or leading to the site of work covered by this Agreement that is undertaken by state, county, city, or other governmental bodies or their contractors. Work performed by public or private utilities including all electrical utility, voice-data-video, and security installation work ahead of and up to the electrical service entry connection or the main point of entry into the building shall be excluded. All electrical utility, voice-data-video, and security installation work performed after the electrical utility service entrance or the main point of entry shall be Covered Work.

Additionally, all contracted work performed ahead of the service entrance connection and main point of entry that is inside the property line and provides for access to the building via a conduit or series of conduits shall be Covered Work.

2.4.3 This Agreement shall not apply to off-site maintenance of leased equipment and on-site supervision of such work.

2.4.4 The [CITY/COUNTY/DISTRICT] shall not be required to comply with this Agreement for any work performed with its own forces as permitted by the Public Contract Code.

2.5 Award of Contracts: It is understood and agreed that the [CITY/COUNTY/DISTRICT] has the right to select any qualified bidder for the award of Construction Contracts under this Agreement. The bidder need only be willing, ready and able to execute and comply with this Agreement. It is further agreed that this Agreement shall be included in all invitations to bid or solicitations for proposals from contractors or subcontractors for work on the Project. A copy of all invitations to bid shall be provided at time of issuance to the Council.

ARTICLE III

EFFECT OF AGREEMENT

3.1 By executing this Agreement, the Council, the Unions and the [CITY/COUNTY/DISTRICT] agree to be bound by each and all of the provisions of the Agreement.

3.2 By accepting the award of work under a Construction Contract for the Project, whether as a Contractor or subcontractor thereunder, all Contractors/Employers agree to be bound by each and every provision of this Agreement and agree that they will evidence their acceptance prior to the commencement of work by executing the Agreement to be Bound in the form attached hereto as Addendum A.

3.3 At the time that any Contractor/Employer enters into a subcontract with any subcontractor providing for the performance of work under a Construction Contract, the Contractor/Employer shall provide a copy of this Agreement to said subcontractor and shall require the subcontractor as a condition of accepting the award of a construction subcontract, to 694
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agree in writing by executing the Agreement to be Bound, to be bound by each and every provision of this Agreement prior to the commencement of work. The obligations of a Contractor may not be evaded by subcontracting. If the subcontractor refuses to execute the Agreement to be Bound, then such subcontractor shall not be awarded a Construction Contract on the Project.

3.4 This Agreement shall only be binding on the signatory parties hereto, and their successors and assigns, and shall not apply to the parents, affiliates, subsidiaries, or other ventures of any such party. Each Contractor shall alone be liable and responsible for its own individual acts and conduct and for any breach or alleged breach of this Agreement, except as otherwise provided by law or the applicable Master Agreement. Any dispute between the Union(s) and the Contractor(s) respecting compliance with the terms of the Agreement shall not affect the rights, liabilities, obligations and duties between the Union(s) and other Contractor(s) party to this Agreement.

3.5 It is mutually agreed by the parties that any liability by a Union signatory to this Agreement shall be several and not joint. Any alleged breach of this Agreement by a Union shall not affect the rights, liabilities, obligations and duties between the Contractor(s) and the other Union(s) party to this Agreement.

3.6 The provisions of this Agreement, including the Schedule As incorporated herein by reference, shall apply to the work covered by this Agreement, notwithstanding the provisions of any other local, area and/or national agreements which may conflict with or differ from the terms of this Agreement. To the extent a provision of this Agreement is inconsistent with a Schedule A, the provisions of this Agreement shall prevail. Where a provision of a Schedule A is not inconsistent with this Agreement, the provision of the Schedule A shall apply.

ARTICLE IV

WORK STOPPAGES, STRIKES, SYMPATHY STRIKES AND LOCKOUTS

4.1. The Unions, [CITY/COUNTY/DISTRICT], and Contractor(s)/Employer(s) covered by this Agreement agree that for the duration of the Project:

4.1.1 There shall be no strikes, sympathy strikes, work stoppages, picketing, handbilling or otherwise advising the public that a labor dispute exists, or slowdowns of any kind, for any reason, by the Unions or employees employed on the Project, at the job site of the Project or at any other facility of [CITY/COUNTY/DISTRICT] because of a dispute on the Project. Disputes arising between the Unions and Contractor(s)/ Employer(s) on other [CITY/COUNTY/DISTRICT] projects are not governed by the terms of the Agreement or this Article.

4.1.2 There shall be no lockout of any kind by a Contractor/Employer of workers employed on the Project.

4.1.3 If a Master Agreement expires before the Contractor/Employer completes the performance of work under a Construction Contract and the Union or Contractor/Employer gives notice of a demand for a new or modified Master Agreement, the Union agrees that it will not strike on work covered by this Agreement and the Union and the Contractor/Employer agree that the expired Master Agreement shall continue in full force and effect for work covered under 695
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this Agreement until a new or modified Master Agreement is reached. If the new or modified Master Agreement provides that any terms of the Master Agreement shall be retroactive, the Contractor/ Employer agrees to comply with any retroactive terms of the new or modified Master Agreement that are applicable to any employee(s) on the Project during the interim, with retroactive payment due within seven (7) calendar days of the effective date of the new or modified Master Agreement.

4.1.4 In the case of nonpayment of wages or trust fund contributions on the Project, the Union shall give the [CITY/COUNTY/DISTRICT] and the Contractor/Employer(s) three (3) business days’ notice when nonpayment of trust fund contributions has occurred and one (1) business day’s notice when nonpayment of wages has occurred or when paychecks being tendered to a financial institution normally recognized to honor such paychecks will not honor such paycheck as a result of insufficient funds, of the intent to withhold labor from the Contractor/Employer(s)' or their subcontractor's workforce, during which time the Contractor/Employer(s) may correct the default. In this instance, a Union's withholding of labor (but not picketing) from a Contractor/Employer who has failed to pay its fringe benefit contributions or failed to meet its weekly payroll shall not be considered a violation of this Article.

4.1.5 Notification: If the [CITY/COUNTY/DISTRICT] contends that any Union has violated this Article, it will so notify in writing the Senior Executive of the Council and the Senior Executive of the Union, setting forth the facts alleged to violate the Article, prior to instituting the expedited arbitration procedure set forth below. The Council will immediately use its best efforts to cause the cessation of any violation of this Article. The leadership of the Union will immediately inform the worker(s) of their obligations under this Article. A Union complying with this obligation shall not be held responsible for the unauthorized acts of employees it represents.

4.2 Expedited Arbitration: Any party to this Agreement shall institute the following procedure, prior to initiating any other action at law or equity, when a breach of this Article is alleged to have occurred:

4.2.1 A party invoking this procedure shall notify Robert Hirsch, as the permanent arbitrator, or Barry Winograd, as the alternate arbitrator, under this procedure. In the event the permanent arbitrator is unavailable at any time, the alternate will be contacted. If neither is available, the parties shall select the arbitrator from the list in Section 13.4. Notice to the arbitrator shall be by the most expeditious means available, with notices by email and telephone to the [CITY/COUNTY/DISTRICT] and the party alleged to be in violation, and to the Council and involved local Union if a Union is alleged to be in violation.

4.2.2 Upon receipt of said notice, the [CITY/COUNTY/DISTRICT] will contact the permanent arbitrator named above, or the alternate if the permanent arbitrator is not available, who will attempt to convene a hearing within twenty-four (24) hours if it is contended that the violation still exists.

4.2.3 The arbitrator shall notify the parties by email and telephone of the place and time for the hearing. Said hearing shall be completed in one session, which, with appropriate recesses at the arbitrator's discretion, shall not exceed twenty-four (24) hours unless otherwise 696
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agreed upon by all parties. A failure of any party to attend said hearings shall not delay the hearing of evidence or the issuance of an award by the arbitrator.

4.2.4 The sole issue at the hearing shall be whether or not a violation of Section

4.1 of the Agreement has occurred. The arbitrator shall have no authority to consider any matter of justification, explanation or mitigation of such violation or to award damages, which issue is reserved for court proceedings, if any. The award shall be issued in writing within three (3) hours after the close of the hearing, and may be issued without a written opinion. If any party desires a written opinion, one shall be issued within fifteen (15) calendar days, but the parties shall not delay compliance with or enforcement of the award due to the issuance of a written opinion. The arbitrator may order cessation of the violation of this Article and other appropriate relief and such award shall be served on all parties by hand or registered mail upon issuance. Should a party found in violation of this Article fail to comply with an arbitrator's award to cease the violation, the party in violation shall pay to the affected party as liquidated damages the sum of ten thousand dollars ($10,000.00) per shift for which it failed to comply, or portion thereof, until such violation is ceased. The arbitrator shall retain jurisdiction to resolve any disputes regarding the liquidated damages claimed under this section.

4.2.5 Such award may be enforced by any Court of competent jurisdiction upon the filing of this Agreement and all other relevant documents referred to above in the following manner. The party filing such enforcement proceedings shall give written notice to the other party. In the proceeding to obtain a temporary order enforcing the arbitrator's award as issued under this Article, all parties waive the right to a hearing and agree that such proceedings may be ex parte. Such agreement does not waive any party's right to participate in a proceeding for a final order of enforcement. The Court's order or orders enforcing the arbitrator's award shall be served on all parties by hand or delivered by certified mail.

4.2.6 Any rights created by statute or law governing arbitration proceedings inconsistent with the above procedure, or which interfere with compliance, are waived by the parties.

4.2.7 The fees and expenses of the arbitrator shall be divided equally between the party instituting the arbitration proceedings provided in this Article and the party alleged to be in breach of its obligation under this Article.

4.2.8 Should either the permanent or the alternate arbitrator identified above no longer work as a labor arbitrator, the [CITY/COUNTY/DISTRICT] and the Council shall mutually agree to a replacement.

ARTICLE V

PRE-CONSTRUCTION CONFERENCE

5.1 Timing: The Project Manager shall convene and conduct, at a location and time mutually agreeable to the Council, a pre-job conference with the Unions and with representatives of all involved Contractors/Employers, who shall be prepared to announce craft assignments and discuss in detail the scope of work and other issues as set forth below, at least fourteen (14) calendar days prior to:
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(a) The commencement of any Project work, and
(b) The commencement of Project work on each subsequently awarded Construction Contract.

5.2 The pre-construction conference shall be attended by a representative of each participating Contractor and each affected Union, and the Council and [CITY/COUNTY/DISTRICT] may attend at their discretion.

5.3 The pre-construction conference shall include but not be limited to the following subjects:
(a) A listing of each Contractor’s scope of work;
(b) The craft assignments;
(c) The estimated number of craft workers required to perform the work; (d) Transportation arrangements;
(e) The estimated start and completion dates of the work; and (f) Discussion of pre-fabricated materials.

5.4 Review Meetings: In order to ensure the terms of this Agreement are being fulfilled and all concerns pertaining to the [CITY/COUNTY/DISTRICT], the Unions and the Contractors are addressed, the Project Manager, General Contractor and Senior Executive of the Council, or designated representatives thereof shall meet on a periodic basis during the term of construction. The [CITY/COUNTY/DISTRICT] and the Council shall have the right to call a meeting of the appropriate parties to ensure the terms of this Agreement are being fulfilled.

ARTICLE VI

NO DISCRIMINATION

6.1 The Contractors/Employers and the Unions agree to comply with all antidiscrimination provisions of federal, state, and local law, to protect employees and applicants for employment, on the Project.

ARTICLE VII

UNION SECURITY

7.1 The Contractor/Employers recognize the Union(s) as the sole bargaining representative of all craft employees working within the scope of this Agreement.

7.2 All employees who are employed by Contractors/Employers to work on the Project will be required to become members and maintain membership in the appropriate Union on or before eight (8) days of consecutive or cumulative employment on the Project.

Membership shall be satisfied by the tendering of periodic dues and fees that are uniformly required, to the extent allowed by law.
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7.3 Authorized representatives of the Unions shall have access to the Project whenever work covered by this Agreement is being, has been, or will be performed on the Project.

ARTICLE VIII

REFERRAL

8.1 The Contractor(s)/Employer(s) performing construction work on the Project shall, in filling craft job requirements, utilize and be bound by the registration facilities and referral systems established or authorized by the Unions signatory hereto. The Contractor(s)/Employer(s) shall have the right to reject any applicant referred by the Union(s), in accordance with the applicable Master Agreement.

8.2 The Contractor(s)/Employer(s) shall have the unqualified right to select and hire directly all supervisors above the level of general foreman it considers necessary and desirable, without such person(s) being referred by the Union(s), unless covered by a Master Agreement.

8.3 In the event that referral facilities maintained by the Union(s) are unable to fill the requisition of a Contractor/Employer for employees within a forty-eight (48) hour period (Saturdays, Sundays and Holidays excluded) after such requisition is made by the Contractor/Employer, the Contractor/Employer shall be free to obtain the worker(s) from any source. A Contractor/Employer who hires a worker(s) to perform Covered Work on the Project pursuant to this section shall immediately provide the appropriate Union with the name and address of such worker(s) and shall immediately refer such worker(s) to the appropriate Union to satisfy the requirements of Article VII of this Agreement.

8.4 It is in the interest of the parties to this Agreement to facilitate employment of Local Area residents and to use resources in the Local Area in construction of the Project. The "Local Area" shall be defined as . It is the objective of the parties that not less than twenty-five percent (25%) of all hours worked on the Project will be worked by residents of the Local Area. The Unions will exert their utmost efforts to recruit sufficient numbers of craft persons to fulfill the referral requirements of the Contractor(s)/Employer(s). To the extent allowed by law, and consistent with the Unions’ hiring hall provisions, and as long as they possess the requisite skills and qualifications, residents of the Local Area, including journeymen and apprentices, shall be referred for Project work covered by this Agreement.

ARTICLE IX

WAGES AND BENEFITS

9.1 The Contractors/Employers agree to pay contributions to the vacation, pension and/or other form of deferred compensation plan, apprenticeship, worker protection and assistance, and health benefit funds established by the applicable Master Agreement(s) for each hour worked on the Project in the amounts designated in the Master Agreement(s) of the applicable Unions.

9.2 By signing this Agreement, the Contractors/Employers adopt and agree to be bound by the written terms of the legally established Trust Agreements, as described in Section

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are to be made into, and benefits paid out of, such Trust Funds. The Contractors/Employers authorize the parties to such local Trust Agreements to appoint trustees and successor trustees to administer the Trust Funds and hereby ratify and accept the trustees so appointed as if made by the Contractors/Employers. The Contractors/Employers agree to execute a separate subscription agreement(s) when such Trust Fund(s) requires such document(s).

9.3 Wages, Hours, Terms and Conditions of Employment: The wages, hours and other terms and conditions of employment on the Project shall be governed by the Master Agreement of the respective craft, to the extent such Master Agreement is not inconsistent with this Agreement. Where a subject is covered by the Master Agreement and not covered by this Agreement, the Master Agreement will prevail. When a subject is covered by both the Master Agreement and this Agreement, to the extent there is any inconsistency, this Agreement will prevail.

9.4 Holidays: Holidays shall be as set forth in the applicable Master Agreement.

ARTICLE X

APPRENTICES

10.1 Recognizing the need to develop adequate numbers of competent workers in the construction industry, the Contractor(s)/Employer(s) shall employ apprentices from a stateapproved Joint Apprenticeship Training Program in the respective crafts to perform such work as is within their capabilities and that is customarily performed by the craft in which they are indentured.

10.2 The apprentice ratios will be in compliance with the provisions of the California Labor Code and the applicable state prevailing wage determination.

10.3 Consistent with the Master Agreements, there shall be no restriction on the utilization of apprentices in performing the work of their craft provided they are properly supervised.

ARTICLE XI

HELMETS TO HARDHATS

11.1 The Contractor(s)/Employer(s) and the Unions recognize a desire to facilitate the entry into the building and construction trades of veterans who are interested in careers in the building and construction industry. The Contractor(s)/Employer(s) and Unions agree to utilize the services of the Center for Military Recruitment, Assessment and Veterans Employment (“Center”), and the Center's "Helmets to Hardhats" program to serve as a resource for preliminary orientation, assessment of construction aptitude, referral to apprenticeship programs or hiring halls, counseling and mentoring, support network, employment opportunities and other needs as identified by the parties.

11.2 The Unions and Contractor(s)/Employer(s) agree to coordinate with the Center to participate in an integrated database of veterans interested in working on the Project and of apprenticeship and employment opportunities for this Project. To the extent permitted by law, the Unions will give credit to such veterans for bona fide, provable past experience. 700
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ARTICLE XII

COMPLIANCE

12.1 It shall be the responsibility of the Contractors/Employers and Unions to investigate and monitor compliance with the provisions of Article IX of this Agreement.

Nothing in this Agreement shall be construed to interfere with or supersede the usual and customary legal remedies available to the Unions and/or employee benefit Trust Funds to collect delinquent Trust Fund contributions from Contractors/Employers on the Project.

Because the Project is a public work subject to the California Labor Code, the [CITY/COUNTY/DISTRICT] shall monitor and enforce compliance with state prevailing wage requirements as well as the Contractors/Employers' compliance with this Agreement.

ARTICLE XIII

GRIEVANCE ARBITRATION PROCEDURE

13.1 Project Labor Disputes: All disputes involving the application or interpretation of a Master Agreement to which a Contractor/Employer and a Union are parties shall be resolved pursuant to the resolution procedures of the Master Agreement. All disputes relating to the interpretation or application of this Agreement, other than disputes under Article IV and Article XIV, shall be subject to resolution by the grievance arbitration procedures set forth in this Article.

13.2 Employee Discipline: All disputes involving the discipline and/or discharge of an employee working on the Project shall be resolved through the grievance and arbitration provisions contained in the Master Agreement for the craft of the affected employee. No employee working on the Project shall be disciplined or discharged without just cause.

13.3 No grievance shall be recognized unless the grieving party (Union or District Council on its own behalf, or on behalf of an employee whom it represents, or a Contractor/Employer on its own behalf) provides notice in writing to the party with whom it has a dispute within five (5) business days after becoming aware of the dispute but in no event more than thirty (30) business days after it reasonably should have become aware of the event giving rise to the dispute. Time limits may be extended by mutual agreement of the parties.

13.4 Grievances shall be settled according to the following procedures:

Step 1: Within five (5) business days after the receipt of the written notice of the grievance, the representative of the involved Union or District Council, or his/her designee, and the representative of the involved Contractor/Employer, shall confer and attempt to resolve the grievance.

Step 2: If the grievance is not resolved at Step 1, within five (5) business days of the Step 1 meeting or the conclusion of efforts to resolve the grievance at Step 1, the alleged grievance may be referred in writing by either involved party to the Business Manager(s) of the affected Union(s) involved and the Labor Relations Manager of the Contractor/Employer, or the Contractor/Employer’s designated representative, for discussion and resolution. This time limit may be extended by mutual consent of both parties. Regardless of which party has initiated the grievance, the Union shall notify its International Union representative prior to the Step 2 701
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meeting, and the International Union representative shall advise if it intends to participate in the Step 2 meeting. The Project Manager and the Council shall have the right to participate in any efforts to resolve the dispute at Step 2.

Step 3: If the grievance is not resolved at Step 2, either party may request the dispute be submitted to arbitration within five (5) business days of the Step 2 meeting or the conclusion of efforts to resolve the grievance at Step 2. This time limit may be extended by mutual consent of both parties. Within five (5) business days after referral of a dispute to arbitration, the representatives shall notify the permanent arbitrator designated in Article IV, or if not available, the alternate arbitrator designated in Article IV, for final and binding arbitration. If the permanent arbitrator or the alternate is not available, an arbitrator shall be selected by the alternate striking method from the list of three (3) below. The order of striking names from the list of arbitrators shall be determined by a coin toss, the winner of which shall decide whether they wish to strike first or second.

1. William Riker

2. Carol Vendrillo

3. Morris Davis

13.5 The decision of the arbitrator shall be final and binding on all parties. The arbitrator shall have no authority to change, amend, add to or detract from any of the provisions of the Agreement. The expense of the arbitrator shall be borne equally by both parties. The arbitrator shall arrange for a hearing on the earliest available date from the date of his/her selection. A decision shall be given to the parties within five (5) calendar days after completion of the hearing unless such time is extended by mutual agreement. A written opinion may be requested by a party from the presiding arbitrator.

13.6 The time limits specified at any step of the grievance procedure may be extended by mutual agreement of the parties. However, failure to process a grievance, or failure to respond in writing within the time limits provided above, without an agreed upon extension of time, shall be deemed a waiver of such grievance without prejudice, or without precedent to the processing and/or resolution of like or similar grievances or disputes.

13.7 In order to encourage the resolution of disputes and grievances at Steps 1 and 2 of this grievance procedure, the parties agree that such settlements shall not be precedent setting.

13.8 Retention: At the time a grievance is submitted under this Agreement or any Master Agreement, the Union(s) may request that the [CITY/COUNTY/DISTRICT] withhold and retain an amount from what is due and owing to the Contractor(s) against whom the grievance is filed, or its higher-tier Contractor, sufficient to cover the damages alleged in the grievance, should the Union(s) prevail. The amount shall be retained by the [CITY/COUNTY/DISTRICT] until such time as the underlying grievance giving rise to the retention is withdrawn, settled, or otherwise resolved, and the retained amount shall be paid to whomever the parties to the grievance shall decide, or to whomever an arbitrator shall so order. 702
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13.9 Should any of the arbitrators listed in this Article or Article IV no longer work as a labor arbitrator, the [CITY/COUNTY/DISTRICT] and the Council shall mutually agree to a replacement.

ARTICLE XIV

WORK ASSIGNMENTS AND JURISDICTIONAL DISPUTES

14.1 The assignment of Covered Work will be solely the responsibility of the Employer performing the work involved; and such work assignments will be in accordance with the Plan for the Settlement of the Jurisdictional Disputes in the Construction Industry (the “Plan”) or any successor Plan.

14.2 All jurisdictional disputes on this Project between or among the building and construction trades Unions and the Employers parties to this Agreement, shall be settled and adjusted according to the present Plan established by the Building and Construction Trades Department or any other plan or method of procedure that may be adopted in the future by the Building and Construction Trades Department. Decisions rendered shall be final, binding and conclusive on the Employers and Unions parties to this Agreement.

14.3 If a dispute arising under this Article involves the Northern California Carpenters Regional Council or any of its subordinate bodies, an arbitrator shall be chosen by the procedures specified in Article V, Section 5 of the Plan from a list composed of John Kagel, Thomas Angelo, Robert Hirsch and Thomas Pagan, and the arbitrator’s hearing on the dispute shall be held at the offices of the California State Building and Construction Trades Council in Sacramento, California within fourteen (14) calendar days of the selection of the arbitrator. All other procedures shall be as specified in the Plan.

14.4 All jurisdictional disputes shall be resolved without the occurrence of any strike, work stoppage, or slow-down of any nature, and the Employer’s assignment shall be adhered to until the dispute is resolved. Individual employees violating this section shall be subject to immediate discharge.

14.5 Each Employer will conduct a pre-job conference with the Council prior to commencing work. The Project Manager and the [CITY/COUNTY/DISTRICT] will be advised in advance of all such conferences and may participate if they wish. Pre-job conferences for different Employers may be held together.

ARTICLE XV

MANAGEMENT RIGHTS

15.1 Consistent with the Schedule A agreements, the Contractor(s)/Employer(s) shall retain full and exclusive authority for the management of their operations, including the right to direct their work force in their sole discretion. No rules, customs or practices shall be permitted or observed which limit or restrict production, or limit or restrict the working efforts of employees, except that lawful manning provisions in the Master Agreement shall be recognized. 703
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ARTICLE XVI

DRUG AND ALCOHOL TESTING

16.1 The use, sale, transfer, purchase and/or possession of a controlled substance, alcohol and/or firearms at any time during the work day is prohibited.

16.2 Drug and alcohol testing shall be conducted in accordance with the substance abuse prevention policies set forth in the applicable Schedule A.

ARTICLE XVII

SAVINGS CLAUSE

17.1 The parties agree that in the event any article, provision, clause, sentence or word of the Agreement is determined to be illegal or void as being in contravention of any applicable law, by a court of competent jurisdiction, the remainder of the Agreement shall remain in full force and effect. The parties further agree that if any article, provision, clause, sentence or word of the Agreement is determined to be illegal or void, by a court of competent jurisdiction, the parties shall substitute, by mutual agreement, in its place and stead, an article, provision, clause, sentence or word that will meet the objections to its validity and will be in accordance with its original intent.

17.2 The parties agree that in the event a decision of a court of competent jurisdiction materially alters the terms of the Agreement such that the intent of the parties is defeated, then the entire Agreement shall be null and void.

17.3 If a court of competent jurisdiction determines that all or part of the Agreement is invalid and/or enjoins the [CITY/COUNTY/DISTRICT] from complying with all or part of its provisions and the [CITY/COUNTY/DISTRICT] accordingly determines that compliance with this Agreement will not be required in order to perform work under a Construction Contract, the Unions will no longer be bound by the provisions of Article IV.

ARTICLE XIX
TERM

18.1 This Agreement shall be included in the bid documents, requests for proposals, or other equivalent Project solicitations, which shall indicate that entering into this Agreement is a condition of the award of a Construction Contract(s) for the Project.

18.2 This Agreement shall apply until the Completion of each Project in accordance with Sections 1.4 and 2.2.

18.3 This Agreement shall become effective on the day it is executed by the [CITY/COUNTY/DISTRICT] and the Council. Prior to each five (5) year anniversary of the effective date of this Agreement, the [CITY/COUNTY/DISTRICT] and the Council shall meet to discuss proposed changes, if any, to the Agreement. Absent changes, the Agreement will roll over for an additional five (5) years.
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ARTICLE XVII

MISCELLANEOUS PROVISIONS

19.1 The section headings contained in this Agreement are inserted for convenience only and shall not affect in any way the meaning or interpretation of this Agreement. All defined terms used in this Agreement shall be deemed to refer to the singular and/or plural, in each instance as the context and/or particular facts may require.

19.2 This Agreement may be executed in counterparts, such that original signatures may appear on separate pages and when bound together all necessary signatures shall constitute an original. Faxed or emailed signature pages transmitted to other parties to this Agreement shall be deemed the equivalent of original signatures.

19.3 Each of the persons signing this Agreement represents and warrants that such person has been duly authorized to sign this Agreement on behalf of the party indicated and each of the parties signing this Agreement warrants and represents that such party is legally authorized and entitled to enter into this Agreement.

19.4 The parties acknowledge that this is a negotiated agreement, that they have had the opportunity to have this Agreement reviewed by their respective legal counsel, and that the terms and conditions of this Agreement are not to be construed against any party on the basis of such party's draftsmanship thereof.

19.5 All defined terms used in this Agreement shall be deemed to refer to the singular and/or plural, in each instance as the context and/or particular facts may require. [SIGNATURES TO FOLLOW]
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[CITY/COUNTY/DISTRICT] OF
By: Date:

CONTRA COSTA COUNTY BUILDING AND

CONSTRUCTION TRADES COUNCIL
By:

Bill Whitney, CEO
Date:
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[UNION SIGNATURES]
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Addendum A

AGREEMENT TO BE BOUND
[Date]
[Addressee]
[Address]
Re: [CITY/COUNTY/DISTRICT] of Project Stabilization Agreement Agreement to be Bound
Dear :

The undersigned confirms that it agrees to be a party to and bound by the [CITY/COUNTY/DISTRICT] of Project Stabilization Agreement (“Agreement”) as such Agreement may, from time to time, be amended by the parties or interpreted pursuant to its terms.

By executing this Agreement to be Bound, the undersigned subscribes to, adopts and agrees to be bound by the written terms of the legally established trust fund documents as set forth in Section

9.1 of the Agreement, as they may from time to time be amended, specifying the detailed basis upon which contributions are to be made into, and benefits made out of, such trust funds, and ratifies and accepts the trustees appointed by the parties to such trust funds. The undersigned agrees to execute a separate subscription agreement(s) for such trust funds when such trust fund(s) require(s) such document(s).

The obligation to be a party to and bound by the Agreement shall extend to all work covered by the [CITY/COUNTY/DISTRICT] of Project Stabilization Agreement undertaken by the undersigned. The undersigned shall require all of its subcontractors, of whatever tier, to become similarly bound for all their work within the scope of the Agreement by signing an identical Agreement to be Bound.

This letter shall constitute a subscription agreement, to the extent of the terms of the letter.

CONTRACTOR/SUBCONTRACTOR:

California Contractor State License No. or Motor Carrier (CA) Permit No.:

Name of Authorized Person (print):

Signature of Authorized Person:

Title of Authorized Person:

Telephone Number of Authorized Person:

Address of Authorized Person:

State Public Works Registration Number:
132625\1009637
708

REPORT TO THE CITY COUNCIL
DATE: Special Meeting of October 3, 2023
TO: Mayor and Members of the City Council
SUBMITTED BY: Patrick Tang, City Attorney
Christina Lawrence, Associate

SUBJECT: Overview of Project Labor Agreement Requirements

RECOMMENDED ACTION
Review and discuss report; provide direction to staff.

BACKGROUND:

At the Council meeting of August 8, 2023, the Council approved Council Member Dion Bailey’s request to schedule a discussion regarding project labor agreements for City construction and public works projects. A project labor agreement is a pre-hire collective bargaining agreement negotiated with local labor organizations that establishes terms and conditions of employment for a specific construction project or a class of construction projects. As a starting point for discussion, this report is intended to provide general information regarding project labor agreements, potential advantages and disadvantages associated with their use, and examples of local agency use.

DISCUSSION:

A project labor agreement (“PLA”) is a pre-hire collective bargaining agreement with one or more labor organizations that establishes the terms and conditions of employment on a particular construction project or for certain construction projects. PLAs are often used on large, complex, long-term, multi-craft construction projects to achieve certain project objectives, such as avoiding labor disruptions, ensuring timely completion of the project, and providing employment opportunities for local residents. 709
Common PLA Provisions:

Public entities are authorized to use, enter into, or require contractors to enter into a PLA for a construction project, provided that the PLA includes certain taxpayer protection provisions, including provisions that: (1) prohibit discrimination, (2) permit all qualified contractors to bid for and be awarded work on the project, (3) include agreed-upon drug testing protocols for workers employed on the project, (4) guarantee against work stoppages, strikes, lockouts, and similar disruptions on the project, and (5) provide that disputes arising from the PLA will be resolved by a neutral arbitrator. (Pub. Con. Code § 2500.) In addition to the taxpayer protection provisions, a PLA will also typically include workforce referral procedures, including provisions that require that all workers for the project be hired through a union hiring hall, as well as standardized work rules and wage and benefit provisions. The specific terms of a PLA are negotiated by the contracting parties.

Once a PLA is in place for a project, it will apply to all contractors and subcontractors who successfully bid on the project. All such contractors and subcontractors must agree to be bound by the terms of the PLA, regardless of whether they are union or non-union.

Advantages & Disadvantages:

Proponents of PLAs claim that the agreements have several advantages, including ensuring timely completion of projects within budget; providing project stability by reducing labor disruptions; and promoting workforce development by establishing local hiring procedures and disadvantaged worker employment opportunities.

Opponents of PLAs argue that the agreements have several disadvantages, including discouraging competition; limiting choice and flexibility by requiring that non-union contractors follow union rules and hire workers exclusively through a union hiring hall; requiring workers to contribute to a union benefit fund regardless of whether those workers will receive those benefits later; and increasing project costs by requiring the payment of union wages and/or by limiting competition.

With respect to the criticism regarding increased project costs, most public works projects require the payment of prevailing wages (per the Labor Code) that are comparable to union wages, thus base labor costs may be the same with or without a PLA. However, there may be certain situations where a non-union contractor is subject to a “double payment” for pension contributions to both the union pension fund, under the terms of a PLA, and to its own retirement benefit fund for its employees, which may put the contractor at a competitive disadvantage and/or result in higher project costs. 710
Examples:

Agencies around the country, state, and region have used PLAs. For instance, Contra Costa County and cities such as Hayward, Martinez, Sacramento, San Francisco, San Jose, and Watsonville have used PLAs on individual projects. While the terms of PLAs vary based on the individual needs of each jurisdiction and each project, PLAs typically address wage irregularities and provide for local business participation, which may help local construction companies, service providers, and suppliers. A PLA was used for the Pinole-Hercules Wastewater Treatment Plant Project (Attachment 1).

Many of the jurisdictions referenced above have also adopted policies that require PLAs on public construction projects that meet certain criteria. Most of the PLA policies reviewed by staff have similar language but differ on certain requirements, such as the project cost thresholds, local hiring goals, and inclusion of disadvantaged resident programs. The City of Watsonville’s PLA ordinance is included as Attachment 2.

Cost thresholds for triggering the PLA requirement for various cities surveyed are as follows:

Berkeley $500,000
Hayward $1,000,000
San Leandro $1,000,000
Watsonville $600,000
Martinez $1,000,000
Steps for Further Consideration:

Cities often take the following steps to assess whether to adopt a PLA for a particular project or a PLA policy and to determine what terms should be included in any such PLA(s) or PLA policies:

1. Formation of council subcommittee to study the item in further detail;

2. Presentations and study sessions to the City Council;

3. When developing a PLA for a particular project(s), meetings between senior staff members of the city and local union groups where specific terms are negotiated for Council consideration; and

4. When developing a PLA for a particular project(s), preparation of a draft PLA for the Council to consider at a publicly held City Council meeting. 711
CONCLUSION:

If Council wishes to further explore the use of a PLA for particular City project(s) or the establishment of a PLA policy, direction will need to be provided to staff regarding the subject project or class of projects for use of a PLA, including any applicable cost threshold; the Council’s objectives or goals for a PLA or PLA policy; and the terms of the proposed PLA. Staff will then need to conduct additional analysis for Council’s further review.

FISCAL IMPACT:

There is no specific fiscal impact to this action, however, the establishment of PLAs for city projects would likely have a fiscal impact for future city construction projects. Some analysts say that PLAs result in higher project costs. Union leaders argue that PLAs reduce costs in the long run because the union is ensuring projects run smoothly. Additionally, staff would be impacted by having to negotiate, implement, and monitor complex PLA requirements.

Attachments:

1. PLA for Pinole-Hercules Wastewater Treatment Plant Project

2. Title 7, Chapter 17 of the Watsonville Municipal Code, Project Labor Agreements for Public Works Construction Projects

3. Project Stabilization Agreement for the City of El Cerrito 712

PROJECT LABOR AGREEMENT

FOR THE

PINOLE-HERCULES WASTEWATER TREATMENT PLANT

UPGRADE PROJECT
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TABLE OF CONTENTS
RECITALS ...................................................................................................................... 1 ARTICLE 1 PURPOSE ................................................................................................... 4 ARTICLE 2 INITIAL PROVISION ................................................................................... 4 ARTICLE 3 DEFINITIONS.............................................................................................. 4 ARTICLE 4 SCOPE OF AGREEMENT .......................................................................... 6 ARTICLE 5 EFFECT OF AGREEMENT....................................................................... 11 ARTICLE 6 WORK STOPPAGES, STRIKES, SYMPATHY STRIKES AND LOCKOUTS ....................................................................................................... 12 ARTICLE 7 PRE-CONSTRUCTION CONFERENCE ................................................... 17 ARTICLE 8 NON-DISCRIMINATION............................................................................ 19 ARTICLE 9 UNION SECURITY.................................................................................... 19 ARTICLE 10 REFERRAL ............................................................................................. 20 ARTICLE 11 WAGES AND BENEFITS........................................................................ 21 ARTICLE 12 COMPLIANCE......................................................................................... 23 ARTICLE 13 GRIEVANCE ARBITRATION PROCEDURE.......................................... 23 ARTICLE 14 WORK ASSIGNMENTS AND JURISDICTIONAL DISPUTES................ 25 ARTICLE 15 APPRENTICES ....................................................................................... 27 ARTICLE 16 MANAGEMENT RIGHTS ........................................................................ 28 ARTICLE 17 HELMETS TO HARDHATS..................................................................... 28 ARTICLE 18 DRUG & ALCOHOL TESTING ............................................................... 29 ARTICLE 19 SAVINGS CLAUSE................................................................................. 29 ARTICLE 20 TERM....................................................................................................... 30

ADDENDUM A PINOLE WASTE WATER TREATMENT PLANT PROJECT
LABOR AGREEMENT AGREEMENT TO BE BOUND .......................... 34

ADDENDUM B PINOLE WASTE WATER TREATMENT PLANT PROJECT
LABOR AGREEMENT LIST OF MASTER AGREEMENTS ................... 35

ADDENDUM C PINOLE WASTE WATER TREATMENT PLANT PROJECT
LABOR AGREEMENT CONSTRUCTION PLAN.................................... 35 714
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ADDENDUM D PINOLE WASTE WATER TREATMENT PLANT PROJECT
LABOR AGREEMENT SUPPLEMENTAL AGREEMENTS.................... 37 715
1 RECITALS
WHEREAS, the Pinole-Hercules Wastewater Treatment Plant is an estimated $48 million public works project that will replace the existing Pinole-Hercules Water Pollution Control Plant (WCPC) with a state-of-the-art wastewater treatment facility; and WHEREAS, the successful completion of the Pinole-Hercules Wastewater Treatment Plant is of the utmost importance to the general public in the Cities of Pinole and Hercules because the project is needed to provide additional wastewater treatment capacity in order to accommodate the cities’ growth and in order to bring treatment operations into compliance with standards set forth by the State Water Resources Control Board; and
WHEREAS, the proposed Pinole-Hercules Wastewater Treatment Plant will provide the region with a modern facility that will be able to process twice as much wastewater as the current plant and do so in a more environmentally sound manner; and
WHEREAS, the Pinole-Hercules Wastewater Treatment Plant will replace the current facility and bring the plant’s operations into compliance with the Regional Water Quality Control Board’s permit requirement and other applicable state and federal regulations; and
WHEREAS, construction of the plant is expected to begin in January 2016 and take approximately 30 months to complete; and
WHEREAS, the timely and successful completion of the Pinole-Hercules Wastewater Treatment Plant is necessary in order to avoid potential fines by the State Water Resources Control Board if the Project is not completed by September 30, 2017 when the current operating permit expires; and
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2 WHEREAS, the new Pinole-Hercules Wastewater Treatment Plant will be located on the same site as the existing treatment facility, which will continue operations during the project; and
WHEREAS, City workers will continue to be responsible for treatment operations, including, but not limited to routine maintenance and repairs, which will not be covered by the Project Labor Agreement; and
WHEREAS, performing construction in an operational plant presents logistical challenges for the City employees, Unions and Contractors; and WHEREAS, the parties agree that one of the primary purposes of this agreement is to avoid the tensions that may arise on the Project because Union and nonunion workers may be required to work side by side on the Project, thereby leading to labor disputes that could delay completion of the Project; and WHEREAS, any work disruptions on this Project could pose significant risk to public health and safety and potentially expose the City to fines; and WHEREAS, workers of various skills will be required in the performance of the construction work, including those to be represented by the Unions signatory to this Agreement and employed by contractors and subcontractors who are signatory to this Agreement; and
WHEREAS, it is recognized that on a Project of this magnitude with multiple contractors and bargaining units on the job site at the same time over an extended period of time, the potential for work disruption is substantial without an overriding commitment to maintain continuity of work; and
WHEREAS, the interests of the general public, the City, the Unions and the Contractor would be best served if the construction work proceeds in an orderly manner without disruption because of strikes, sympathy strikes, work stoppages, picketing, lockouts, slowdowns or other interferences with work; and 717
3 WHEREAS, the Contractors and the Unions desire to mutually establish and stabilize wages, hours and working conditions for the workers employed on the Project by the Contractors and that a satisfactory, continuous and harmonious relationship will exist among the parties to this Agreement; and
WHEREAS, this Agreement is not intended to replace, interfere with, abrogate, diminish or modify existing local or national collective bargaining agreements in effect during the duration of the Project, insofar as a legally binding agreement exists between the Contractor/Employer(s) and the affected Union(s), except to the extent that the provisions of this Agreement are inconsistent with said collective bargaining agreements, in which event, the provisions of this Agreement shall prevail; and WHEREAS, contracts for the Project will be awarded in accordance with the applicable provisions of local, state and federal laws, including State Public Contract Code and Davis-Bacon and State Prevailing Wage Requirements, state and federal regulations, as well as the terms of the financing agreement with the State Water Board’s Clean Water State Revolving Fund; and
WHEREAS, the City has the absolute right to select the lowest responsive and responsible bidder for the award of construction contracts on the Project; and WHEREAS, the City places high priority upon the development of comprehensive programs for the recruitment, training and employment of local area residents, and recognizes the potential of local apprenticeship programs to provide meaningful and sustainable careers in the building and construction industry; and WHEREAS, the parties signatory to this Agreement pledge their full good faith and trust to work towards mutually satisfactory completion of the Project;

NOW, THEREFORE, IT IS AGREED BETWEEN AND AMONG THE PARTIES HERETO, AS FOLLOWS:
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4 ARTICLE 1

PURPOSE
The purpose of this Agreement is to promote the timely, safe and economical upgrade of the Pinole-Hercules Wastewater Treatment Plant and to provide for the peaceful settlement of labor disputes and grievances without the work disruptions set forth in Article 6, thereby promoting the public interest in assuring the completion of the Project. The City of Pinole (“City”) and the Contra Costa Building & Construction Trades Council (“Council”) may mutually agree in writing to add additional components to the Project’s Scope of Work to be covered under this PLA.

ARTICLE 2

INITIAL PROVISION
This Project Labor Agreement is entered into this ___day of _______________, 2015 by and between the City, together with contractors and subcontractors of all tiers, who shall become signatory to this Agreement by signing the "Agreement To Be Bound" (Addendum A) (all of whom are referred to herein as "Contractors "), and the Council and its affiliated local Unions that have executed this Agreement (all of whom are referred to collectively as "Unions").

ARTICLE 3

DEFINITIONS

3.1 “Agreement” means this Project Labor Agreement.

3.2 “City” means the City of Pinole and its public employees, including managerial personnel.

3.3 “Construction Contract(s)” or “Contract(s) means any contract awarded by the City for Project work, and all subcontracts thereunder. 719
5 3.4 “Contractor(s)” means any individual, firm, partnership or corporation, or combination thereof, including joint ventures, that is an independent business enterprise, including the Prime Contractor, General Contractor, and Construction Manager or equivalent, and their successors and assigns, that enters into a Contract with the City for the construction of any part of the Project under contract terms and conditions approved by the City, and any of its contractors or subcontractors of any tier.

3.5 “Council” means the Contra Costa County Building & Construction Trades Council, AFL-CIO.

3.6 “Effective Date” means the date that this Agreement is approved and executed by the City Council of Pinole and the Contra Costa County Building & Construction Trades Council.

3.7 “Helmets to Hardhats” means a national program that connects National Guard, Reserve and transitioning active-duty military members with career training and employment opportunities within the construction industry. The program is administered by a non-profit Section 501(c)(3) joint labor-management committee established under Section 302(c)(9) of the Labor Management Relations Act.

3.8 “Local Area” means the Cities of Pinole and Hercules, West Contra Costa County, and Contra Costa County.

3.9 “Master Agreement” or “Schedule A” or “Master Labor Agreement” means the Master Collective Bargaining Agreement of each craft Union signatory to this Agreement. The agreements are listed in Addendum B and posted online at www.ci.pinole.ca.us/publicworks/treat_plant.html.
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6 3.10 “Project” means all construction under a specific contract to upgrade the PinoleHercules Wastewater Treatment Plant. The elements of the Project, which may be amended at any time and at the sole discretion of the City, are listed in Addendum C. The City and the Council may mutually agree in writing to add additional components to the Project’s Scope of Work to be covered under this PLA.

3.11 “Project Manager” means the person or business entity under direct contract with the City of Pinole to support the management and administration of the Project.

3.12 “Project Work” means all work that is part of the Project within the craft jurisdiction of the Unions signatory to this Agreement, except as otherwise provided in Articles 4.5 and 4.6.

3.13 “Union(s)” means the Contra Costa Building & Construction Trades Council, AFLCIO (“the Council”) and its affiliated local Unions signatory to this Agreement, acting on their own behalf and on behalf of their respective affiliates and member organizations, who have through their authorized officers executed this Agreement.

ARTICLE 4

SCOPE OF AGREEMENT

4.1 Parties: The Agreement shall apply and is limited to the City and all Contractors performing or subcontracting work under Construction Contract(s) on the Project (including subcontractors of any tier), the Council and its affiliated local Unions signatory to this Agreement, acting in their own behalf and on behalf of their respective affiliates and member organizations (“Signatory Unions”). 721
7 4.2 Applicability: The Agreement shall govern construction of the Pinole-Hercules Wastewater Treatment Plant, located at 11 Tennent Avenue, Pinole, CA 94564.

For the purposes of this Agreement, the Project shall be considered completed as provided by Article 20, or otherwise provided by applicable law.

4.3 The City of Pinole reserves the right, in its sole discretion, to terminate, delay, suspend, modify, augment and/or expand any and all portions of the Project at any time, including, but not limited to: value engineering, re-packaging, and/or rebidding any Project Work or otherwise combining, modifying, consolidating, or canceling contracts identified as part of the Project work. However, all such work shall continue to be covered under this Agreement. Further, the City of Pinole may require or prohibit some or all work on certain days or during certain hours of the day and/or require such other operational or schedule changes that it may deem necessary.

4.4 There shall be no limitation or restriction upon the City’s choice of materials, equipment, machinery, package units, factory pre-cast, prefabricated, or preassembled materials, tools or other labor-savings devices except as set forth in Article 4.5(b). Unions agree to use or install the aforementioned items.

4.5 Project Work: As defined in Article 3.12 and except as otherwise provided in this article or in Article 4.6, this Agreement covers without limitation, all on-site site preparation, surveying, construction, alteration, demolition, installation, improvement, painting or repair of buildings, structures and other works, and related activities for the Project, that is within the craft jurisdiction of one of the Unions, including, without limitation to the following examples: geotechnical and exploratory drilling, temporary HVAC, landscaping and temporary fencing, pipelines (including those in linear corridors built to serve the project), installation 722
8 of pumps, pump stations, and modular furniture. On-site work includes work done for the Project in temporary yards or areas adjacent to the Project, and at any on-site or off-site batch plant constructed solely to supply materials to the Project. This scope of work includes all soils and materials testing and inspection where such testing and inspection is a classification in which a prevailing wage determination has been published.
(a) This Agreement shall apply to any start-up, calibration, commissioning, performance testing, field revisions, and repairs covered by warranty to systems and/or subsystems related to the Contractor’s work under a Construction Contract for this Project unless such work is performed by City employees.
(b) This Agreement covers all on-site fabrication work over which the City, Contractor(s) or subcontractor(s) possess the right of control (including work done for the Project in any temporary yard or area established for the Project). Additionally, this Agreement covers any off-site work, including fabrication necessary for the Project defined herein, that is covered by a current Schedule A Agreement or local addenda to a National Agreement of the applicable Union(s) that is in effect as of the execution date of this Agreement.
(c) Construction trucking work, such as the delivery of ready-mix, asphalt, aggregate, sand or other fill material which are incorporated into the construction process shall be covered by this Agreement. The off-hauling of debris and excess fill, material and/or mud, shall be covered by the Agreement to the extent provided by applicable prevailing wage determinations of the California Department of Industrial Relations or by Labor Code Section 1720.3.
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9 (d) Work covered by this Agreement within the following craft jurisdictions shall be performed under the terms of their National Agreements as follows: the NTL Articles of Agreement, the National Stack/Chimney Agreement, the National Cooling Tower Agreement, and the National Agreement of Elevator Constructors, and any instrument calibration work and loop checking shall be performed under the terms of the UA/IBEW Joint National Agreement for Instrument and Control Technicians, with the exception that Articles 6, 13, and 14 of this Agreement shall apply to such work.

4.6 Exclusions
(a) This Agreement shall not cover the furnishing of supplies, equipment or materials that are stockpiled for later use.
(b) This Agreement is not intended to, and shall not affect or govern the award of public works contracts by the City which are not included in the Project, including, but not limited to, other scheduled capital improvement projects, regular repairs and maintenance.
(c) The City shall not be required to comply with this Agreement for any work performed with its own employees, including but not limited to all work necessary for wastewater treatment operations of the Pinole-Hercules Wastewater Treatment Plant;
(d) This Agreement shall not apply to a Contractor’s non-construction craft supervisors, or technical employees, including but not limited to executives, managerial employees, engineering employees and supervisors above the level of General Foreman, staff engineers or other 724
10 professional engineers, administrative, management, office and clerical employees.
(e) Work not referenced in Addendum C that is undertaken by state, county, city or other governmental bodies, or their employees or their contractors, or by public or private utilities or their contractors, shall not be covered by this Agreement.
(f) This Agreement shall not apply to off-site maintenance of leased equipment and on-site supervision of such work.
(g) This Agreement shall not apply to any work that would void the warranty of equipment, machinery, or package units. For any work performed pursuant to this provision, the Contractor shall provide copies of the manufacturer’s written warranty requirements to the Union and the City’s Project Manager prior to the commencement of work by the manufacturer or vendor. In the absence of a written manufacturer’s warranty, the Contractor responsible for performing the work will assign the work to the appropriate craft prior to the commencement of work.

4.7 Award of Contracts: It is understood and agreed that the City has the absolute right to select any qualified bidder for the award of contracts under this Agreement. The City in awarding Contracts, has the absolute right to award a Contract to any Contractor notwithstanding the existence or nonexistence of any agreement between such Contractor and any Union party, provided only that such contractor is willing, ready and able to execute and comply with this Agreement. It is further agreed that this Agreement shall be included in all invitations to bid or solicitations for proposals from contractors or subcontractors for work on the Project that are issued on and after the effective date of this 725
11 Agreement. Copies of all invitations to bid shall be provided at the time of issuance to the Council.

ARTICLE 5

EFFECT OF AGREEMENT

5.1 By executing the Agreement, the Unions and the City agree to be bound by each and all of the provisions of the Agreement.

5.2 By accepting the award of work under a Construction Contract for the Project, whether as contractor or subcontractor, the Contractor agrees to be bound by each and every provision of the Agreement and agrees that it will evidence its acceptance prior to the commencement of work by executing the Agreement To Be Bound in the form attached hereto as Addendum A.

5.3 At the time that any Contractor enters into a subcontract with any subcontractor providing for the performance of work under a Construction Contract, the Contractor shall provide a copy of this Agreement to said subcontractor and shall require the subcontractor as a precondition of accepting an award of a construction subcontract to agree in writing, by executing the Agreement To Be Bound (Addendum A), to be bound by each and every provision of this Agreement prior to the commencement of work. The obligations of a contractor may not be evaded by subcontracting.

5.4 This Agreement shall only be binding on the parties signatory to this Agreement or to an Agreement To Be Bound, as well as to their successors and assigns, and shall not apply to the parents, affiliates, subsidiaries, or other ventures of any such party. Each Contractor shall alone be liable and responsible for its own individual acts and conduct and for any breach or alleged breach of this 726
12 Agreement. Any dispute between the Union(s) and the Contractor(s) respecting compliance with the terms of the Agreement, shall not affect the rights, liabilities, obligations and duties between the signatory Union(s) and other Contractor(s) party to this Agreement.

5.5 It is mutually agreed by the parties that any liability by a signatory Union to this Agreement shall be several and not joint. Any alleged breach of this Agreement by a signatory Union shall not affect the rights, liabilities, obligations and duties between the signatory Contractor(s) and the other Union(s) party to this Agreement.

5.6 The provisions of this Agreement, including Schedules As, which are the local Master Agreements of the Signatory Unions having jurisdiction over the work on the Project, shall apply to the work covered by this Agreement, notwithstanding the provisions of any other local, area and/or national agreements which may conflict with or differ from the terms of this Agreement. Where a subject covered by the provisions of this Agreement is also covered by a Schedule A, the provisions of this Agreement shall prevail. Where a subject is covered by the provisions of a Schedule A and is not covered by this Agreement, the provisions of the Schedule A shall prevail.

5.7 This Agreement is subject to the terms and conditions of the financing agreement between the City of Pinole and the State Water Board’s Clean Water State Revolving Fund.

ARTICLE 6

WORK STOPPAGES, STRIKES, SYMPATHY STRIKES AND LOCKOUTS

6.1 The Unions, City and Contractors agree that for the duration of the Project:
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13 (a) There shall be no strikes, sympathy strikes, work stoppages, picketing, handbilling or otherwise advising the public that a labor dispute exists, or slowdowns of any kind, for any reason, by the Unions or employees employed on the Project, at the job site of the Project or at any other facility of the City or Contractors because of a dispute on the Project. Nor shall the Unions or any employees employed on the Project participate in any strikes, sympathy strikes, work stoppages, picketing, hand billing, slowdowns, or otherwise advising the public that a labor dispute exists at the jobsite of the Project because of a dispute between Unions and Contractor on any other project. Withholding employees, but not picketing, for failure of a Contractor(s) to tender trust fund contributions as required in accordance with Article 11 and/or for failure to meet its weekly payroll is not a violation of this Article; however, the Union shall give the affected Contractor, Project Manager and the City written notice no less than five (5) working days prior to the withholding of employees. Should a Contractor performing work on this Project be delinquent in the payment of Trust Fund contributions required under this Agreement with respect to employees represented by the Union, the Union may request that the General Contractor issue joint checks payable to the Contractor and the appropriate employee benefit Trust Fund(s) until such delinquencies are satisfied. Any Trust Fund claiming that a Contractor is delinquent in its fringe benefit contributions to the funds will provide written notice of the alleged delinquency to the affected Contractor, with copies to the General Contractor, Project Manager, and City. The notice will indicate the amount of delinquency asserted and the period that the delinquency covers. It is agreed, however, with respect to contractors delinquent in trust or benefit 728
14 contribution payments, that nothing in this Agreement shall affect normal contract remedies available under the local collective bargaining agreements and or Trust Agreements. Nothing stated in this Agreement shall prevent Unions from participating in the actions mentioned in this section on jobsites other than the Project jobsite because of disputes between the Unions and Contractors on projects other than this Project. (b) There shall be no lockout of any kind of any employee employed on the Project by a Contactor covered by the Agreement.
(c) If a Master Agreement expires during the term of this Agreement, it is specifically agreed that there shall be no strike, sympathy strike, work stoppage, picketing, hand billing or otherwise advising the public that a labor dispute exists, or a slowdown of any kind. The wages, benefits, and terms of employment established and set under the initial Master Agreement shall continue in full force until the completion of the Project. (d) Notification: If the City, Project Manager or Contractor contends that any Union has violated this Article, it shall notify by phone, email, and overnight mail the Senior Executive of the Council and the Senior Executive of the Union, setting forth the facts alleged to violate the Article, prior to instituting the expedited arbitration procedure set forth below. The Senior Executive of the Council will immediately use his/her best efforts to cause the cessation of any violation of this Article. The leadership of the Union will direct the membership to cease any violation of this Article. A Union complying with this obligation shall not be liable for unauthorized acts of employees it represents.
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15 6.2 Expedited Arbitration: Any party to this Agreement shall institute the following procedure, prior to initiating any other action at law or equity, when a breach of this Article is alleged to have occurred:
(a) A party invoking this procedure shall notify Robert Hirsch, as the permanent arbitrator, or, Barry Winograd, as the alternate under this procedure. In the event that the permanent arbitrator is unavailable at any time, the alternate will be contacted. If neither is available, then a selection shall be made from the list of arbitrators in Article 14.2. Notice to the arbitrator shall be by the most expeditious means available, with notices by phone, email, and overnight mail to the party alleged to be in violation and to the Council and involved local Union if a Union is alleged to be in violation.
(b) Upon receipt of said notice, the City will contact the designated arbitrator named above or his alternate who will attempt to convene a hearing within twenty-four (24) hours if it is contended that the violation still exists. (c) The arbitrator shall notify the parties by phone, email, and overnight mail of the place and time for the hearing. Said hearing shall be completed in one session, which, with appropriate recesses at the arbitrator’s discretion, shall not exceed twenty-four (24) hours unless otherwise agreed upon by all parties. A failure of any party to attend said hearings shall not delay the hearing of evidence or the issuance of any award by the arbitrator.
(d) The sole issue at the hearing shall be whether or not a violation of Article 6 of the Agreement has occurred. The arbitrator shall have no authority to consider any matter of justification, explanation or mitigation of such violation or to award damages, which issue is reserved for court 730
16 proceedings, if any. The award shall be issued in writing within three (3) hours after the close of the hearing, and may be issued without a written opinion. If any party desires a written opinion, one shall be issued within fifteen (15) days, but its issuance shall not delay compliance with or enforcement of the award. The arbitrator may order cessation of the violation of this Article and other appropriate relief and such award shall be served on all parties by hand or registered mail upon issuance. Should a party found in violation of this Article fail to comply with an Arbitrator’s award to cease the violation, the party in violation shall pay to the affected party as liquidated damages the sum of ten thousand dollars ($10,000.00) per shift for which it failed to comply, or portion thereof, until such violation is ceased. The Arbitrator shall retain jurisdiction to resolve any disputes regarding the liquidated damages claimed under this section. (e) Such award may be enforced by any Court of competent jurisdiction upon the filing of this Agreement and all other relevant documents referred to above in the following manner. Written notice of the filing of such enforcement proceedings shall be given to the other party. In the proceeding to obtain a temporary order enforcing the arbitrator’s award as issued under Section 6.2(d) of this Article, all parties waive the right to a hearing and agree that such proceedings may be ex parte. Such agreement does not waive any party’s right to participate in a hearing for a final order or enforcement. The Court’s order or orders enforcing the arbitrator’s award shall be served on all parties by hand or delivered by certified mail.
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17 (f) Any rights created by statute or law governing arbitration proceedings inconsistent with the above procedure, or which interfere with compliance, are waived by the parties.
(g) The fees and expenses of the arbitrator shall be divided equally between the party instituting the arbitration proceedings provided in this Article and the party alleged to be in breach of its obligation under this Article. (h) Should either the permanent or the alternate arbitrator listed above no longer work as a labor arbitrator, the City and the Council shall mutually agree to a replacement.

ARTICLE 7

PRE-CONSTRUCTION CONFERENCE

7.1 All efforts will be made to hold pre-construction conferences in sufficient time to ensure all parties the ability to properly raise and resolve any issues that may arise out of such conferences.

7.2 The Project Manager shall convene and conduct a pre-job conference with representatives of all involved Contractors, and the Unions. The Contractors shall be prepared to announce craft assignments and to discuss in detail the scope of work and other issues as set forth below, at a location and time mutually agreeable to the Council at least 21 days prior to:
(a) The commencement of any Project Work, and
(b) The commencement of Project Work on each subsequently awarded construction contract or phase.
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18 7.3 Pre-job conferences shall be attended by a representative from each of the participating Contractors and Unions and the Project Manager. The Council and City may, at their discretion, attend any and all pre-construction conferences.

7.4 Pre-Job Conference: The pre-job conference shall consist of:
(a) A listing of each Contractor’s scope of work;
(b) The proposed craft assignments;
(c) The estimated number of craft workers required to perform the work; (d) Transportation arrangements; and
(e) The estimated start and completion dates of the work.

7.5 Waiver: Any jurisdictional dispute relating to the assignment of work shall be waived if not made within five (5) business days of the pre-job conference or from when the Union becomes aware or should have become aware of the assignment. All Project Work shall proceed without delay as assigned at the prejob conference notwithstanding any pending disputes about the assignment of any portion of that work.

7.6 Progress meetings: In order to ensure the terms of the PLA are being fulfilled and all concerns to the City, Unions, Contractors are addressed, the Project Manager, General Contractor and Senior Executive of the Council or designated representatives thereof shall meet on a periodic basis during the term of the construction. As needed, subcontractors may be required to attend progress meetings.
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19 ARTICLE 8

NON-DISCRIMINATION

8.1 The Contractor and Unions agree to comply with all anti-discrimination provisions of federal, state and local law, to protect employees and applicants for employment, on the Project.

ARTICLE 9

UNION SECURITY

9.1 The Contractor recognizes the Union(s) as the sole bargaining representative of all craft employees working within the scope of this Agreement.

9.2 All construction persons who are employed by the Contractor(s) shall, as a condition of employment, on or before the eighth (8th) day of consecutive or cumulative employment on the Project, be responsible for the payment of the applicable dues and/or fees uniformly required by the applicable Local union.

Individuals are required to pay applicable dues and/or fees only during the term of their work on the Project. Upon paying the applicable dues and/or fees, workers shall enjoy full access to Union hiring halls for as long as such dues and/or fees are paid. Nothing in this Agreement shall prevent non-union employees from joining the local Union.

9.3 Authorized representatives of the Unions shall have access to the Projects whenever work covered by this Agreement is being, has been, or will be performed on the Project.
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20 ARTICLE 10

REFERRAL

10.1 Contractor/Employers performing construction work on the Project described in the Agreement shall, in filling craft job requirements, utilize and be bound by the registration facilities and referral systems established or authorized by the Unions signatory hereto. The Contractors shall have the right to reject any person referred by the Union(s). This right will be exercised in accordance with the procedures and timelines established by the applicable Master Agreement.

10.2 The Contractor(s) shall have the unqualified right to select and hire directly all supervisors above General Foreman it considers necessary and desirable, without such persons being referred by the Union(s). Further, it is understood that all signatory Unions shall permit foremen to be called by name at hiring halls.

10.3 In the event that referral facilities maintained by the Union(s) are unable to fill the requisition of a Contractor for employees within a forty-eight (48) hour period (Saturdays, Sundays and Holidays excluded) after such requisition is made by the Contractor (s), the Contractor (s) shall be free to obtain workers from any source. A Contractor who hires any worker to perform Project Work pursuant to this Section shall immediately provide the appropriate Union with the name and address of such employee(s) and shall immediately refer such employee(s) to the appropriate Union to satisfy the requirements of Article 9 of this Agreement.

10.4 Local Hire: It is in the interest of the parties to this Agreement to facilitate employment of Local Area residents and to use Local Area resources in construction of the Project. The objective of the parties is that at least twenty-five percent (25%) of the total work hours for the Project shall be performed by Local Area residents and that a minimum of twenty-five percent (25%) of all new hires 735
21 will be from the Local Area. The Unions will exert their utmost efforts to recruit and refer sufficient numbers of skilled craft persons from the Local Area who possess the requisite skills and qualifications to fulfill the needs of the Contractor(s) and the requirements of this Article 10.4. To the fullest extent allowed by law and the Unions’ lawful hiring hall provisions, residents of the Local Area, including journeymen and apprentices, shall be referred for Project work covered by this Agreement in the following order: 1) Residents of the cities of Pinole and Hercules; 2) Residents of West Contra Costa County; and 3) Residents of Contra Costa County.

10.5 Monitoring: Contractors and Unions. Unions will work with the City of Pinole’s Project Manager when recruiting, referring and selecting employees to perform Project work under this Agreement. The Contractor will forward to the Union and the City a copy of all construction personnel requests made, specifying the personnel requested. Contractors shall utilize the “name-call”, “re-hire”, “transfer” and or “sponsorship” options, where available under a craft’s Master Agreement and the Union hiring hall rules to maximize the participation of Local Area Residents on the Project.

10.6 The Unions and Contractors shall maintain an updated list containing the craft classification of any worker hired for the Project along with that worker’s city and zip code. For the purposes of establishing residency, Post Office boxes will not be accepted.

ARTICLE 11

WAGES AND BENEFITS

11.1 For all Project Work, all Contractors agree to pay contributions to the established vacation, pension and other form of deferred compensation plan, apprenticeship, 736
22 worker protection and assistance, and health benefit funds established by the applicable Master Agreement for each hour worked on the Project in the amounts designated in the Master Agreements of the appropriate Signatory Unions.

11.2 By signing this Agreement, Contractors adopt and agree to be bound by the written terms of the legally established Trust Agreements, as described in Article

11.1, only for Project Work performed during the Project. The Trust Agreements, which may from time to time be amended, specify the manner in which payments are to be paid into, and benefits paid out of, such Trust Funds. The Contractors authorize the parties to such local trust agreements to appoint trustees and successor trustees to administer the trust funds and hereby ratify and accept the trustees so appointed as if made by the Contractor(s). The Contractors agree to execute a separate Subscription Agreement(s) for Trust Funds applicable solely to Project Work performed during the Project, when such Trust Fund(s) require(s) such document(s).

11.3 Wages, Hours, Terms and Conditions of Employment: The wages, hours and other terms and conditions of employment on the Project shall be governed by the Master Agreement of the respective crafts, to the extent such Master Agreement is not inconsistent with this Agreement. Where a subject covered by the provisions of this Agreement is also covered by a Schedule A, the provisions of this Agreement shall prevail. Where a subject is covered by the provisions of a Schedule A and is not covered by this Agreement, the provisions of the Schedule A shall prevail.
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23 ARTICLE 12

COMPLIANCE

12.1 It shall be the responsibility of the Contractors and Unions to investigate and monitor compliance with the provisions of the Agreement contained in Article 11.

Nothing in this agreement shall be construed to interfere with or supersede the usual and customary legal remedies available to the Unions and/or employee benefit Trust Funds to collect delinquent Trust Fund contributions from Contractors on the Project.

ARTICLE 13

GRIEVANCE ARBITRATION PROCEDURE

13.1 Project Labor Disputes: All project labor disputes involving the application or interpretation of the Master Agreement to which a signatory Contractor and a signatory Union are parties shall be resolved pursuant to the resolution procedures of that Master Agreement. All disputes relating to the interpretation or application of this Agreement shall be subject to resolution by the Grievance arbitration procedures set forth herein.

13.2 No grievance shall be recognized unless the grieving party (Local Union on its own behalf, or on behalf of an employee whom it represents, the City, or a Contractor) provides notice in writing to the party with whom it has a dispute within five (5) business days after becoming aware of the dispute but in no event more than thirty (30) business days after it reasonably should have become aware of the event giving rise to the dispute. Time limits may be extended by mutual written agreement of the parties.

Step 1: Within five (5) business days after the receipt of the written notice of the grievance, the Business Representative of the involved Local Union 738
24 or District Council, or his/her designee, or the representative of the employee, and the representative of the involved Contractor shall confer and attempt to resolve the grievance.

Step 2: In the event that the representatives are unable to resolve the dispute within the five (5) business days of the Step 1 meeting, within five (5) business days thereafter, the alleged grievance may be referred in writing by either involved party to the Business Manager(s) of the affected Union(s) involved and the Manager of Labor Relations of the Contractor or the Manager's designated representative, for discussion and resolution. Regardless of which party has initiated the grievance proceeding, prior to a Step 2 meeting, the Union(s) shall notify its International Union representative(s), which shall advise both parties if it intends on participating in a Step 2 meeting. The Project Manager and the City shall have the right to participate in any efforts to resolve the dispute at Step 2.

Step 3: If the grievance is not settled in Step 2, within five (5) business days of the Step 2 meeting, either party may request the dispute be submitted to arbitration or the time may be extended by mutual consent of both parties. Within five (5) business days after referral of a dispute to Step 3, the representatives shall choose a mutually agreed upon arbitrator for final and binding arbitration. The parties agree that if the permanent arbitrator or his alternate is not available, an arbitrator shall be selected by the alternate striking method from the list of three (3) below. The order of striking names from the list of arbitrators shall be determined by a coin toss, the winner of which shall decide whether they wish to strike first or second.

1. William Riker

2. David Weinberg

3. Katherine Thomson
739
25 The decision of the Arbitrator shall be final and binding on all parties. The Arbitrator shall have no authority to change, amend, add to or detract from any of the provisions of the Agreement. The expense of the Arbitrator shall be borne equally by both parties. The Arbitrator shall arrange for a hearing on the earliest available date from the date of his/her selection. A decision shall be given to the parties within five (5) calendar days after completion of the hearing unless such time is extended by mutual agreement. A written opinion may be requested by a party from the presiding arbitrator.

The time limits specified in any step of the Grievance Procedure set forth in Section 12.2 may be extended by mutual agreement of the parties. However, failure to process a grievance within the time limits provided above, without an agreed upon extension of time, shall be deemed a waiver of such grievance without prejudice, or without precedent to the processing of and/or resolution of like or similar grievances or disputes.

In order to encourage the resolution of disputes and grievances at Steps 1 and 2 of this Grievance Procedure, the parties agree that such settlements shall not be precedent setting.

13.3 Should any of the arbitrators listed in this Article no longer work as a labor arbitrator, the City and the Council shall mutually agree to a replacement.

ARTICLE 14

WORK ASSIGNMENTS AND JURISDICTIONAL DISPUTES

14.1 The assignment of Project Work will be solely the responsibility of the Contractor performing the work involved; and such work assignments will be in accordance with the Plan for the Settlement of the Jurisdictional Disputes in the Construction Industry (the “Plan”) or any successor Plan.
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26 14.2 All jurisdictional disputes on this Project between or among the building and construction trades Unions and the Contractors party to this Agreement shall be settled and adjusted according to the present Plan established by the Building and Construction Trades Department or any other plan or method of procedure that may be adopted in the future by the Building and Construction Trades Department. Decisions rendered shall be final, binding and conclusive on the Contractor and Union parties to this Agreement.

14.3 If a dispute arising under this Article involves the Northern California Carpenters Regional Council or any of its subordinate bodies, an Arbitrator shall be chosen by the procedures specified in Article V, Section 5 of the Plan from a list composed of John Kagel, Thomas Angelo, Robert Hirsch, and Thomas Pagan, and the Arbitrator’s hearing on the dispute shall be held at the offices of the California State Building and Construction Trades Council in Sacramento, California, within 14 days of the selection of the Arbitrator . All other procedures shall be as specified in the Plan.

14.4 All jurisdictional disputes shall be resolved without the occurrence of any strike, work stoppage, or slow-down of any nature, and the Contractor’s assignment shall be adhered to until the dispute is resolved. Individual employees violating this section shall be subject to immediate discharge. Each Contractor will conduct a pre-job conference with the Council prior to commencing work. The Project Manager and City will be advised in advance of all such conferences and may participate if they wish. Pre-job conferences for different Contractors may be held together.
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27 ARTICLE 15

APPRENTICES

15.1 Recognizing the need to develop adequate numbers of competent workers in the construction industry, the Contractor(s) shall employ apprentices of a California State-approved Joint Apprenticeship Training Committee (JATC) Program in the respective crafts to perform such work as is within their capabilities and which is customarily performed by the craft in which they are indentured.

15.2 The apprentice ratios will be in compliance with the applicable provisions of the California Labor Code, Training Standards and the Master Agreements.

15.3 The objective of the parties is that at least twenty-five percent (25%) of the apprentices employed on the Project will be from the Local Area. Apprentices shall be given priority in hiring in the following order: 1) Residents of the cities of Pinole and Hercules; 2) Residents of West Contra Costa County; and 3) Residents of Contra Costa County. The prioritization of apprenticeship hiring shall be consistent with the law, hiring hall procedures of the Unions, and the standards and procedures of the JATC. The Contractors shall reach this goal through utilization of the normal hiring hall procedures. The Unions are committed to working with the Contractors to achieve these goals. All Local Area apprentices referred to Contractors under this Agreement shall be enrolled in State of California approved Joint Apprentice Training Programs. The employment of apprentices shall count toward the 25% local hiring goal in Article

10.4. 15.4 Consistent with the Master Agreements and State law, there shall be no restriction on the utilization of apprentices in performing the work of their craft provided they are properly supervised.
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28 ARTICLE 16

MANAGEMENT RIGHTS

16.1 The Contractor(s) shall retain full and exclusive authority for the management of their operations, including the right to direct their work force in their sole discretion. No rules, customs or practices shall be permitted or observed which limit or restrict production, or limit or restrict the working efforts of employees except that lawful manning provisions in the Master Agreement shall be recognized.

ARTICLE 17

HELMETS TO HARDHATS

17.1 The Contractors and the Unions recognize a desire to facilitate the entry into the building and construction trades of veterans who are interested in careers in the building and construction industry. The Contractor and Unions agree to utilize the services of the Center for Military Recruitment, Assessment and Veterans Employment (hereinafter “Center) and the Center’s “Helmets to Hardhats” program to serve as a resource for preliminary orientation, assessment of construction aptitude, referral to apprenticeship programs or hiring halls, counseling and mentoring, support network, employment opportunities and other needs as identified by the parties.

17.2 The Unions and Contractors agree to coordinate with the Center to participate in an integrated database of veterans interested in working on the Project and of apprenticeship and employment opportunities for this Project. To the extent permitted by law, the Unions will give credit to such veterans for bona fide, provable past experience.
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29 ARTICLE 18

DRUG & ALCOHOL TESTING

18.1 The use, sale, transfer, purchase and/or possession of a controlled substance, alcohol and/or firearms at any time during the work day is prohibited.

18.2 The Parties agree to recognize and use the Substance Abuse Prevention Policies contained in each applicable Union’s Schedule A.

ARTICLE 19

SAVINGS CLAUSE

19.1 In the event any article, provision, clause, sentence or word of the Agreement is determined to be illegal or void as being in contravention of any applicable law, by a court of competent jurisdiction, the remainder of the Agreement shall remain in full force and effect. In that event, the parties shall meet and confer and exercise best efforts to reach agreement on acceptable replacement language which will meet the objections to its validity and which will be in accordance with the intent and purpose of the article, provision, clause, sentence or work in question.

19.2 If agreement is reached, the Parties shall substitute in place and stead of the invalidated article, provision, clause, sentence or word another article, provision, clause, sentence or word that will resolve the issues identified by the court and be in accordance with the intent and purpose of the article, provision, clause, sentence or word invalidated.

19.3 If the Parties are unable to reach an agreement, then the entire Agreement shall be null and void and the Council and Unions will no longer be bound by the provisions of Article 6 (Work Stoppages, Strikes, Sympathy Strikes and Lockouts).
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30 ARTICLE 20
TERM

20.1 This Agreement shall become effective on the day it is executed and approved by the City Council of Pinole and by the Contra Costa County Building Construction and Trades Council and shall continue in effect until construction of the Project is complete. Construction shall be deemed complete when each item on the punch list is completed, a Notice of Completion has been prepared, the Project has been accepted by City Council resolution and the notice of completion has been filed.
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31 CITY OF PINOLE
By _________________________________ Date_______________________

CONTRA COSTA BUILDING AND

CONSTRUCTION TRADES COUNCIL, AFL-CIO (COUNCIL)
By _________________________________ Date_______________________ 746
32 SIGNATURE BLOCK FOR UNIONS
Asbestos Workers Local 16 Hod Carriers Local 166
Boilermakers Local 549 Roofers Local 81
Bricklayers Local 3 Iron Workers Local 378
Northern California Regional
Council of Carpenters for and on
Behalf of Their Affiliated Crafts
Laborers Local Union 324
Laborers Local Union 67
Sheet Metal Workers Local 104 Cement Masons Local 300
Operating Engineers Local 3 Electrical Workers Local 302 Painters District Council 16 Plasterers Local 66
Sprinkler Fitters Local 483 United Association Local 159 United Association Local 342 United Association Local 355 747
33 Teamsters Local 315 Elevator Constructors Local 8
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34 ADDENDUM A

PINOLE WASTE WATER TREATMENT PLANT

PROJECT LABOR AGREEMENT

AGREEMENT TO BE BOUND
[Addressee]
[Address]
[City and State]
Re: Pinole Waste Water Treatment Plant Project Labor Agreement.

Dear Mr. /Ms. ______________:

For the duration of the Project, the undersigned party confirms that it agrees to be a party to and bound by the Pinole-Hercules Wastewater Treatment Plant Project Labor Agreement as such Agreement may, from time to time, be amended by the parties or interpreted pursuant to its terms.

By executing this Agreement To Be Bound, the undersigned party subscribes to, adopts and agrees to be bound by the written terms of the legally established trust agreements specifying the detailed basis upon which contributions are to be made into, and benefits made out of, such trust funds and ratifies and accepts the trustees appointed by the parties to such trust funds. The Contractors agree to execute a separate Subscription Agreement(s) for Trust Funds when such Trust Fund(s) requires such document(s).

Such obligation to be a party to and bound by this Agreement shall extend to all work covered by the Pinole-Hercules Wastewater Treatment Plant Project Labor Agreement undertaken by the undersigned party for the duration of the Project. The undersigned party shall require all of its subcontractors, of whatever tier, to become similarly bound for all their work within the scope of this Agreement by signing an identical Agreement To Be Bound.

This letter shall constitute a subscription agreement, to the extent of the terms of the letter.

CONTRACTOR/SUBCONTRACTOR: ____________________________________ Project Contract Number: ____________________________________ California State License Number: ____________________________________ or Motor Carrier (CA) Permit Number
Name and Signature of Authorized Person: ____________________________________ (Signature)
____________________________________
(Print Name)
____________________________________
(Title)
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35 ADDENDUM B

PINOLE WASTE WATER TREATMENT PLANT

PROJECT LABOR AGREEMENT

LIST OF MASTER AGREEMENTS

ADDENDUM C

PINOLE WASTE WATER TREATMENT PLANT
750
36 PROJECT LABOR AGREEMENT

CONSTRUCTION PLAN
751
37 ADDENDUM D

PINOLE WASTE WATER TREATMENT PLANT

PROJECT LABOR AGREEMENT

SUPPLEMENTAL AGREEMENTS
City of Pinole – Wastewater Treatment Plant Project Labor Agreement Addendum D: Supplemental Agreement between City and Building Trades Council This Supplemental Agreement confirms the Parties’ understanding concerning the application of section 4.5(b) of the above-referenced Project Labor Agreement (PLA).

Having reviewed the current Schedule A Agreements, the Parties agree that the only Schedule A Agreements containing provisions relevant to section 4.5(b) are those of the Plumbers and Pipefitters Local Union Nos. 159 and 342 and Sheet Metal Workers’ Local Union No. 104. With respect to these two Unions, the City recognizes that the provisions of their Schedule A Agreements addressing off-site fabrication shall apply to work on the Project.

Should other issues arise relevant to off-site fabrication, the parties agree to work cooperatively to assure that the Project is finished in the most timely and efficient manner possible.

Agreed and accepted this _____ day of __________________ 2015 By: ______________________________
[City]
By: ______________________________
[BTC]
By: _____________________________
[Local 159]
752
City of Watsonville Municipal Code
Chapter 17

PROJECT LABOR AGREEMENTS FOR PUBLIC WORKS CONSTRUCTION PROJECTS Sections:
7-17.01 Findings.
7-17.02 Definitions.
7-17.03 Application of project labor agreement policy.
7-17.04 Required provisions.
7-17.05 Compliance with State and Federal law.
7-17.01 Findings.

City-funded construction projects can involve numerous contractors and employees in different trades, have critical timelines for completion, and require a skilled and properly trained workforce to successfully complete the work in a proper and timely manner. In order to avoid costly delays and additional expense to the City, it is essential that construction on such projects proceed without the labor disruptions that can occur on long-term projects both from external labor relations problems and from the frictions that often arise when a large number of contractors and their employees work in proximity to one another on a job site.

In the private sector, project labor agreements have been used for years on complex construction projects to achieve satisfactory performance and the economic benefits that result from having a guaranteed source of skilled workers and from avoiding disruptions in work.

In the public sector, project labor agreements have been used successfully by the San Francisco International Airport, the Contra Costa Water District, the Oakland Airport, the Foothill De Anza Community College District, and numerous other public entities in and around the Bay Area for hospitals, reservoirs, wastewater treatments, schools and other complex construction projects. Such agreements have been a major factor in producing quality construction work and projects completed on time, within budget, and without labor strife or disruptions.
753
Throughout Northern California, and especially in the San Francisco Bay Area, project labor agreements have been used successfully on numerous public and private construction projects, and public entities such as the County of Contra Costa, the Bay Area Rapid Transit District, the Oakland Unified School District, the San Francisco Unified School District, the City of Berkeley, and others, maintain project labor agreement ordinances and policies requiring the use of project labor agreements on their publicly funded construction projects.

It is recognized that unemployment and underemployment of residents of the City of Watsonville has been and continues to be a serious problem. Statistics also indicate that the higher unemployment level in the City of Watsonville correlates to the higher number of families living at or near the poverty line and to a higher crime rate.

As a result, it is the policy of the City of Watsonville to increase the number of employed persons living in the City of Watsonville in an attempt to counteract the grave economic and social ills associated with the higher unemployment levels that exist within the City.

The City Council has determined there is a need to provide City of Watsonville residents with more opportunities to participate in workforce development and pre-apprenticeship programs that include life skills training and job readiness training. Such pre-apprenticeship programs will increase the capacity of Watsonville residents to succeed later in formal apprenticeship programs and hence reduce the unemployment rate and accompanying poverty and crime conditions.

The construction craft jobs that are created by City-funded projects can be used to facilitate the local hire goals embodied in Watsonville’s local hire ordinance. The construction crafts that are employed on these projects require a supply of new apprentices to perpetuate the crafts into the future which provide meaningful employment opportunities to individuals seeking to enter the building and construction trades for long-term, well-paid careers in the construction industry.

In addition, large numbers of returning veterans are and will be seeking employment on City-funded construction projects and will be seeking training opportunities for entrance into the construction industry.

Such training opportunities are available through the program known as “Helmets to Hardhats,” utilization of which program is required in all current project labor agreements.

The City Council has determined that project labor agreements have proven to be a valuable vehicle for accomplishing all of the goals set out above.

Therefore, the City Council of the City of Watsonville has determined that on all competitively bid public works construction projects with a projected construction cost of Six Hundred Thousand and no/100ths 754
($600,000.00) Dollars or more, and employing workers in three (3) or more crafts, a project labor agreement should be used for the construction of such projects. (§ 1, Ord. 1295-13 (CM), eff. November 7, 2013)
7-17.02 Definitions.

For the purposes of this chapter, certain words and phrases used are defined as follows:
(a) “Project labor agreement” shall mean a prehire collective bargaining agreement with one (1) or more labor organizations that establishes terms and conditions of employment for a specific construction project or projects and is an agreement described in Title 29, Section 158(f) of the United States Code. (b) “Contractor” shall mean a person entering into or performing a public works construction project. (c) “Subcontractor” shall mean any person with whom a construction contractor or other subcontractor enters into a contract to perform a portion of any public works construction project. (d) “Public works construction project” shall include all site preparation, construction, alteration, demolition, installation, improvement, painting, repair or off-haul work as defined in Labor Code Section 1720.3, paid for in whole or in part by City funds with a projected construction cost of Six Hundred Thousand and no/100ths ($600,000.00) Dollars or more and employing workers in three (3) or more crafts.
(e) “Union” shall mean the Monterey/Santa Cruz Building and Construction Trades Council and its affiliated unions and any other unions that become signatory to a project labor agreement governing the construction of a public works construction project.
(§ 1, Ord. 1295-13 (CM), eff. November 7, 2013)
7-17.03 Application of project labor agreement policy.

This chapter shall apply to all public works construction projects unless the existence of a project labor agreement will jeopardize State, Federal or other public funding sources. In all, it shall be set forth in the bid documents for the public works construction project as a condition of the award that the successful bidder, including contractors and subcontractors at all tiers, shall be required to sign an agreement to be bound and to enter into a project labor agreement. The successful general contract bidder shall execute a master project labor agreement which will be filed with the City Clerk and shall govern its work on the construction of the public works construction project according to its terms. (§ 1, Ord. 1295-13 (CM), eff. November 7, 2013)
755
7-17.04 Required provisions.

Unless the Council, by majority vote, determines otherwise, the project labor agreement shall contain the following provisions:
(a) The project labor agreement shall be binding on all contractors and subcontractors at all tiers; (b) The contractor shall require all subcontractors, at all tiers, as a condition of working on the public works construction project, to become parties to the project labor agreement; (c) The project labor agreement shall guarantee against work stoppages, strikes, lockouts, and similar disruptions of the project as set forth in subdivision (a)(4) of California Public Contract Code Section 2500;
(d) The Union and its members shall continue work on the public works construction project despite the expiration of the applicable collective bargaining agreements; (e) All contractors and subcontractors shall recognize the union as the exclusive bargaining representative of the craft workers employed on the public works construction project; (f) All contractors and subcontractors shall use the union hiring hall procedures for satisfying project craft needs on the public works construction project;
(g) All contractors and subcontractors shall hire apprentices indentured in the State-approved joint apprenticeship program for the craft or trade involved for work on the public works construction project in accordance with the apprentice ratios in California Labor Code Section 1777.5; (h) Any local hire ordinance adopted by the City of Watsonville shall be included in and made a part of the project labor agreement;
(i) The project labor agreement shall require use of the “Helmets to Hardhats” program to assist returning veterans in obtaining employment and training opportunities on the public works construction project;
(j) The wages and benefits of the craft employees performing work on the public works construction project shall be governed by the collective bargaining agreement of the union traditionally recognized as the bargaining representative of the craft(s) in question; (k) The project labor agreement shall not apply to the contractors’ or subcontractors’ parent companies, subsidiaries, or affiliates;
756
(l) The project labor agreement shall not apply to the contractors’ or subcontractors’ managerial, executive, clerical or supervisory employees above the level of general foremen; (m) The contractors or subcontractors are acting on their own behalf and have no authority, express, implied, actual, apparent, or ostensible, to bind the City; (n) The project labor agreement does not apply to any work performed on or near or leading to or into the public works construction project site by Federal, State, or other governmental entities or their contractor(s) for work which is not part of the public works construction project; (o) An agreed-upon protocol concerning drug testing for workers who will be employed on the project as set forth in subdivision (a)(3) of California Public Contract Code Section 2500; (p) Prohibition of discrimination based on race, national origin, religion, sexual orientation, political affiliation or membership in a labor organization in hiring or dispatching workers for the project as set forth in subdivision (a)(1) of California Public Contract Code Section 2500; (q) All contractors and subcontractors may bid for and be awarded work on the project without regard to whether they are otherwise parties to collective bargaining agreements as set forth in subdivision (a)(2) of California Public Contract Code Section 2500;
(r) A requirement that disputes arising from the project labor agreement shall be resolved by a neutral arbitrator as required by subdivision (a)(5) of California Public Contract Code Section 2500. (§ 1, Ord. 1295-13 (CM), eff. November 7, 2013)
7-17.05 Compliance with State and Federal law.

This chapter shall be enforced only to the extent that it is consistent with the laws of the State of California and the United States. Nothing in this chapter is intended to exempt any business from complying with State or Federal law, or from complying with State requirements for apprenticeship programs. No employer shall be required to violate its obligations under an agreement governed by the National Labor Relations Act and the Labor-Management Relations Act of 1947. If any provision of this chapter is held by a court of law to be in conflict with State or Federal law, the applicable law shall prevail over the terms of this chapter, and the conflicting provisions of this chapter shall not be enforceable. (§ 1, Ord. 1295-13 (CM), eff. November 7, 2013)
757
Project Stabilization Agreement
for the City of El Cerrito
1 PROJECT STABILIZATION AGREEMENT

FOR THE CITY OF EL CERRITO

INTRODUCTION/FINDINGS
This Project Stabilization Agreement (“ Agreement”) is entered into this ____ day of 20____, (“ Effective Date”) by and between the City of El Cerrito hereinafter the “ City”), together with contractors and subcontractors of all tiers, who shall become signatory to this Agreement by signing the “ Agreement to be Bound” ( Addendum A) referred to herein as the “ Contractor(s)/Employer(s)”), and the Contra Costa County Building and Construction Trades Council ( referred to herein as the “ Council”) and its affiliated local Unions that have executed this Agreement (referred to collectively herein as the “Union(s)”).

The purpose of this Agreement is to promote the efficiency of construction operations for the City of El Cerrito through the use of skilled labor resulting in quality construction outcomes, and to provide for the peaceful settlement of labor disputes and grievances without strikes or lockouts, thereby promoting the public interest in assuring the timely and economical completion of the Project( s) defined in Section 1.9 below and covered by this Agreement.

WHEREAS, the timely and successful completion of a Project is of the utmost importance to meet the needs of the City and avoid increased costs resulting from delays in construction; and
WHEREAS, large numbers of workers of various skills will be required in the performance of construction work on a Project and will be represented by the Unions who are signatories to this Agreement and employed by the Contractors who are also signatories to this Agreement; and
WHEREAS, the use of skilled labor in the construction of Projects increases the safety of workers as well as the quality of completed Projects; and WHEREAS, it is recognized that the Projects likely will require multiple contractors and bargaining units on the job site at the same time over an extended period of time, and, thus, the potential for work disruption may be substantial without an overriding commitment to maintain continuity of work; and
WHEREAS, the interests of the general public, the City, the Unions, and the Contractors/Employers would be best served if the construction work on a Project proceeded in an orderly manner without disruption because of strikes, sympathy strikes, work stoppages, picketing, lockouts, slowdowns or other interferences with work; and WHEREAS, the Contractors/Employers and the Unions desire to mutually establish and stabilize wages, hours and working conditions for the workers employed on a Project and to encourage close cooperation among the Contractors/Employers and the Unions so that a satisfactory, continuous and harmonious relationship will exist; and WHEREAS, the parties agree that one of the primary purposes of this Agreement is to avoid the tensions that might arise on a Project if Union and non- union workers of different 758
Project Stabilization Agreement
for the City of El Cerrito
2 employers were to work side by side on a Project, potentially leading to labor disputes that could delay completion of a Project; and
WHEREAS, this Agreement is not intended to replace, interfere with, abrogate, diminish or modify existing local or national collective bargaining agreements in effect during the duration of the Projects, insofar as a legally binding agreement exists between the Contractors/ Employers and the Unions, except to the extent that the provisions of this Agreement are inconsistent with said collective bargaining agreements, in which event the provisions of this Agreement shall prevail; and
WHEREAS, the City places high priority upon the development of comprehensive programs for the recruitment, training and employment of local area residents and military veterans, and recognizes the ability of local pre-apprenticeship and apprenticeship programs to provide meaningful and sustainable career pathways in the construction industry; and WHEREAS, the contract( s) for construction work on the Projects will be awarded in accordance with the applicable provisions of the California State Public Contract Code and all state, local and federal laws; and
WHEREAS, the parties to this Agreement pledge their full good faith and trust to work toward the mutually satisfactory Completion as defined in Section 1.4 below of the Projects pursuant to the terms and conditions of the Agreement;

NOW, THEREFORE, IT IS AGREED BETWEEN AND AMONG THE PARTIES HERETO, AS FOLLOWS:

ARTICLE I

DEFINITIONS
Agreement" means this Project Stabilization Agreement.

Agreement to be Bound" means the agreement (attached hereto as Addendum A) that shall be executed by each and every Contractor/ Employer as a condition of working on the Project.

City" means the City of El Cerrito.

Completion" means that point at which there is Final Acceptance by the City of a Construction Contract and the City has recorded a Notice of Completion. For purposes of this definition, " Final Acceptance" means that point in time at which the City has determined upon final inspection that the work has been completed in all respects and all required contract documents, contract drawings, warranties, certificates, manuals and data have been submitted and training completed in accordance with the contract documents and the City has executed a written acceptance of the work.

Construction Contract” means the public works or improvement contract( s) including design-bid, design-build, lease-leaseback or other contracts under which construction of a Project is done) awarded and entered into by the City that are necessary for Completion of a Project.
759
Project Stabilization Agreement
for the City of El Cerrito
3 Contractor(s)/Employer(s)" or "Contractor(s)" or "Employer(s)" means any individual, firm, partnership or corporation (including the prime contractor, general contractor, construction manager, project manager, design- build entity, lease- leaseback entity or equivalent entity), or combination thereof, including joint ventures, and their successors and assigns, that enters into a Construction Contract with the City, and all contractors and subcontractors of any tier engaged by the Contractor or Employer.

Council” means the Contra Costa County Building and Construction Trades Council.

Master Agreement” means the Master Collective Bargaining Agreement of each craft Union signatory hereto.

Project" means City projects funded in whole or in part with City funds, where either the engineer’ s estimate of the total cost of the project or the cumulative bid amount(s) submitted by the contractor( s) awarded the Construction Contract( s) exceeds one million dollars 1,000.000), subject to Section 2.2 of this Agreement. All Construction Contracts required to complete an integrated Project shall be considered in determining whether this threshold is met.

The City and the Council may mutually agree in writing to add additional projects or components to be covered by this Agreement. The term “ Project” applies to each and all projects as defined in this section, whether used in the singular or plural herein.

Project Manager” means the person(s) or entity(ies) designated by the City to oversee all phases of construction on a Project and the implementation of this Agreement.

Union” or “ Unions” means the Contra Costa Building and Construction Trades Council and its affiliated Unions signatory to this Agreement, acting on their own behalf and on behalf of their respective affiliates and member organizations whose names are subscribed hereto and who have through their officers executed this Agreement.

ARTICLE II

SCOPE OF AGREEMENT

2.1 Parties: This Agreement applies to and is limited to all Contractors/Employers performing Construction Contracts on a Project ( including subcontractors at any tier), and their successors and assigns, the City, the Council, and its affiliated Unions signatory to this Agreement.

2.2 Applicability: This Agreement governs all Construction Contracts that include Covered Work as defined in Section 2.3 awarded on or after the Effective Date for a Project until Completion, unless otherwise set forth in this Agreement. Construction Contracts shall be considered Completed as set forth in Section 1.4, except when the City directs a Contractor to engage in repairs, warranty work, modifications, or punch list work under a Construction Contract or when a Contractor performs work under a change order for a Construction Contract.

2.3 Covered Work: Covered Work shall include, without limitation, all site preparation, surveying, construction, alteration, demolition, installation, improvement, remediation, retrofit, painting or repair of buildings, structures and other works, and related 760
Project Stabilization Agreement
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4 activities for a Project that is within the craft jurisdiction of one of the Unions and that is directly or indirectly part of the Project, including, without limitation to the following examples, geotechnical and exploratory drilling, soils and materials testing and inspection, temporary HVAC, landscaping and temporary fencing, pipelines (including those in linear corridors built to serve the Project), pumps, pump stations, start- up, modular furniture installation, final clean- up work; as well as work done for the Project in temporary yards, dedicated sites, or areas adjacent to a Project, and at any on- site or off-site batch plant constructed to supply materials to a Project Covered Work”). Covered Work shall also include all of the following:

2.3.1 Any start-up, calibration, commissioning, performance testing, repair, maintenance, and operational revisions to systems and/ or subsystems for a Project performed after Completion, unless performed by City employees.

2.3.2 All on- site fabrication work over which the City, Contractor(s)/Employer(s) or subcontractor(s) possess the right of control (including work done for a Project in any temporary yard or area established for the Project); as well as any off-site work, including fabrication, that is traditionally performed by the Unions and is directly or indirectly part of the Project, provided such work is covered by a Master Agreement or local addenda to a national agreement of the applicable Union(s).

2.3.3 Except for the delivery of supplies, equipment or materials that are stockpiled for later use, all construction trucking work, including the hauling and delivery of ready-mix, asphalt, aggregate, sand, soil or other fill or similar material that is directly incorporated into the construction process as well as the off-hauling of soil, sand, gravel, rocks, concrete, asphalt, excavation materials, construction debris and excess fill, material and/or mud.

Contractor( s)/ Employer( s), including brokers, of persons providing construction trucking work shall provide certified payroll records to the City within ten (10) days of written request or as required by the bid specifications.

2.3.4 Covered Work within the following National Agreements shall be covered by those agreements as follows: the National Transient Lodge (NTL) Articles of Agreement, the National Stack/ Chimney Agreement, the National Cooling Tower Agreement, the National Agreement of Elevator Constructors, and any Covered Work for instrument calibration work and loop checking shall be performed under the terms of the UA/IBEW Joint National Agreement for Instrument and Control Systems Technicians, with the exception that Articles IV, XII and XIII of this Agreement shall apply to such work.

2.4 Exclusions: The following is not considered Covered Work.

2.4.1 Work performed by the City’s own employees as permitted by the Public Contract Code.

2.4.2 A Contractor/ Employer’ s non- construction craft executives, managerial employees, administrative personnel, and supervisors above the level of general foreman (unless covered by a Master Agreement).

2.4.3 Any non- Project work performed on or near or leading to a Project site that is undertaken by state, county, city, or other governmental bodies or their contractors. Work 761
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5 performed by public or private utilities including all electrical utility, voice-data-video, and security installation work ahead of and up to the electrical service entry connection or the main point of entry into the building shall be excluded; however, all electrical utility, voice- datavideo, and security installation work performed after the electrical utility service entrance or the main point of entry shall be Covered Work. Additionally, all contracted work performed ahead of the service entrance connection and main point of entry that is inside the property line and provides for access to the building via a conduit or series of conduits shall be Covered Work.

2.4.4 Off-site maintenance of leased equipment and on- site supervision of such work.

2.4.5 This Agreement shall not apply to work substantially funded by any federal, state, local or other public agency that prohibits the use of project labor agreements on projects receiving its funding, or the funding of projects on which such agreements are used.

With respect to such work, the City agrees to make a reasonable effort to defend the application of this Agreement, including by making a written request to the funding source. Notwithstanding the foregoing, should only a specific provision of the Agreement be prohibited by the funding source, then, upon mutual agreement by the Council, the City shall modify the requirements of this Agreement accordingly, to allow this Agreement to remain in place and to advance the purposes of this Agreement to the maximum extent feasible.

2.4.6 Work performed by employees of a manufacturer or vendor on the manufacturer’ s equipment if required in order to maintain the manufacturer’ s warranty or guarantee on such equipment; provided that ( i) the warranty agreement is the manufacturer’ s usual and customary warranty agreement for such equipment and is consistent with industry practice; and ( ii) the manufacturer or vendor has first demonstrated at the pre-job conference, by an enumeration of specific tasks, that in order to preserve the warranty, the work cannot be performed by construction persons employed under this Agreement.

2.4.7 Laboratory work for testing and inspections not covered by a Master Agreement.

2.5 Award of Contracts: The City retains the right to reject all bids and re-advertise a Project, however, in that event, the re-advertised Project would be subject to this Agreement’ s terms and conditions. It is understood and agreed that the City has the right to select any qualified bidder for the award of Construction Contracts under this Agreement. The bidder need only be willing, ready and able to comply with this Agreement. It is further agreed that this Agreement shall be included in all invitations to bid or solicitations for proposals from contractors or subcontractors for work on the Project. A copy of all invitations to bid shall be provided to the Council at the time of issuance.

ARTICLE III

EFFECT OF AGREEMENT

3.1 By executing this Agreement, the Council, the Unions and the City agree to be bound by each and all of the provisions of the Agreement. 762
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6 3.2 By accepting the award of a Construction Contract for the Project, whether as a Contractor or subcontractor thereunder, all Contractors/Employers agree to be bound by each and every provision of this Agreement and agree to evidence their acceptance prior to the commencement of work by executing the Agreement to be Bound in the form attached hereto as Addendum A.

3.3 At the time that any Contractor/ Employer enters into a subcontract with any subcontractor that includes Covered Work under a Construction Contract, the Contractor/ Employer shall provide a copy of this Agreement to said subcontractor and shall require the subcontractor, as a condition of accepting the award of a construction subcontract, to agree in writing, by executing the Agreement to be Bound, to be bound by each and every provision of this Agreement prior to the commencement of work. The obligations of a Contractor may not be evaded by subcontracting. If the subcontractor refuses to execute the Agreement to be Bound, then such subcontractor shall not be awarded a Construction Contract on the Project.

3.4 This Agreement shall only be binding on the signatory parties hereto, and their successors and assigns, and shall not apply to the parents, affiliates, subsidiaries, or other ventures of any such party. Each Contractor shall alone be liable and responsible for its own individual acts and conduct and for any breach or alleged breach of this Agreement, except as otherwise provided by law or the applicable Master Agreement. Any dispute between the Union( s) and the Contractor( s) with respect to compliance with this Agreement shall not affect the rights, liabilities, obligations and duties between the Union(s) and other Contractor(s) party to this Agreement.

3.5 It is mutually agreed by the parties that any liability by a Union signatory to this Agreement shall be several and not joint. Any alleged breach of this Agreement by a Union shall not affect the rights, liabilities, obligations and duties between the Contractor(s) and the other Union( s) party to this Agreement.

3.6 The provisions of this Agreement, including the Master Agreements incorporated herein by reference, shall apply to the work covered by this Agreement, notwithstanding the provisions of any other local, area and/ or national agreements which may conflict with or differ from the terms of this Agreement. To the extent a provision of this Agreement conflicts with a Master Agreement, the provision of this Agreement shall prevail. Where a provision of a Master Agreement does not conflict with this Agreement, the provision of the Master Agreement shall apply.

ARTICLE IV

WORK STOPPAGES, STRIKES, SYMPATHY STRIKES AND LOCKOUTS

4.1. The Unions, the City, and the Contractor( s)/Employer( s) covered by this Agreement agree that for the duration of the Project:

4.1.1 There shall be no strikes, sympathy strikes, work stoppages, picketing, handbilling or otherwise advising the public that a labor dispute exists, or slowdowns, refusal to work, walk-off, sit down, stand-in, wobble, boycott of any kind, for any reason, by the Unions or employees employed on a Project, at the job site of a Project or any other facility of City because 763
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7 of a dispute on a Project. Disputes arising between the Unions and Contractor(s)/ Employer(s) on other City projects are not governed by the terms of the Agreement or this Article, except that the Unions or construction persons employed on a Project may not participate in any strikes, sympathy strikes, work stoppages, picketing, hand billing, slowdowns, or otherwise advising the public that a labor dispute exists at a Project jobsite because of a dispute between Unions and Contractor(s) on any other project.

4.1.2 There shall be no lockout of any kind by a Contractor( s)/ Employer( s) of workers employed on a Project.

4.1.3 If a Master Agreement expires before the Contractor(s)/Employer(s) completes the performance of work under a Construction Contract and the Union or Contractor(s)/Employer(s) gives notice of a demand for a new or modified Master Agreement, the Union agrees that it will not strike on work covered by this Agreement and the Union and the Contractor(s)/Employer(s) agree that the expired Master Agreement will continue in full force and effect for work covered under this Agreement until a new or modified Master Agreement is reached. If the new or modified Master Agreement provides that any terms of the Master Agreement shall be retroactive, the Contractor( s)/ Employer( s) agrees to comply with any retroactive terms of the new or modified Master Agreement that are applicable to any employee( s) on a Project during the interim, with retroactive payment due within seven ( 7) calendar days of the effective date of the new or modified Master Agreement. For the avoidance of doubt, Section 4.1.1 shall remain applicable for the duration of the Project even where a Master Agreement has expired.

4.1.4 In consideration of the foregoing, the Contractor(s) shall not incite, encourage, or participate in any lockout or cause to be locked out any employee covered under the provisions of this Agreement. The term “lockout” does not include the City’s decision to terminate or suspend work on the site or any portion thereof for any operational reason.

4.1.5 In the case of nonpayment of wages or trust fund contributions on the Project, the Union shall give the City and the Contractor( s)/ Employer( s) three ( 3) business days’ notice when nonpayment of trust fund contributions has occurred, and one (1) business day’s notice when nonpayment of wages has occurred or when paychecks being tendered to a financial institution normally recognized to honor such paychecks will not honor such paycheck, of the intent to withhold labor from the Contractor( s)/Employer( s)’ or their subcontractor' s workforce, during which time the Contractor/Employer may correct the default. In this instance, a Union's withholding of labor ( but not picketing) from a Contractor( s)/Employer( s) who has failed to pay its fringe benefit contributions or failed to meet its weekly payroll shall not be considered a violation of this Article.

4.1.6 Notification: If the City or any Contractor contends that any Union has violated this Article, it will so notify in writing the Senior Executive of the Council and the Senior Executive of the Union, setting forth the facts alleged to violate the Article, prior to instituting the expedited arbitration procedure set forth below. The Council will immediately use its best efforts to cause the cessation of any violation of this Article. The leadership of the Union will immediately inform the workers of their obligations under this Article. A Union complying 764
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8 with this obligation shall not be held responsible for the unauthorized acts of employees it represents.

4.2 Expedited Arbitration: Any party to this Agreement shall institute the following procedure, prior to initiating any other action at law or equity, when a breach of this Article is alleged to have occurred.

4.2.1 A party invoking this procedure shall notify Robert Hirsch, as the permanent arbitrator, or Barry Winograd, as the alternate arbitrator, under this procedure. In the event the permanent arbitrator is unavailable at any time, the alternate will be contacted. If neither is available, the parties shall select the arbitrator from the list in Section 12.4. Notice to the arbitrator shall be by the most expeditious means available, with notice by email and telephone to the City, the involved Contractor, and the party alleged to be in violation, and to the Council and involved local Union if a Union is alleged to be in violation.

4.2.2 Upon receipt of said notice, the City will contact the permanent arbitrator named above, or the alternate if the permanent arbitrator is not available, who will attempt to convene a hearing within twenty- four ( 24) hours if it is contended that the violation still exists.

4.2.3 The arbitrator shall notify the parties by email and telephone of the place and time for the hearing. Said hearing shall be completed in one session, which, with appropriate recesses at the arbitrator' s discretion, shall not exceed twenty- four ( 24) hours unless otherwise agreed upon by all parties. A failure of any party to attend said hearings shall not delay the hearing of evidence or the issuance of an award by the arbitrator.

4.2.4 The sole issue at the hearing shall be whether or not a violation of Section

4.1 of the Agreement has occurred. The arbitrator shall have no authority to consider any matter of justification, explanation or mitigation of such violation or to award damages, which issue is reserved for court proceedings, if any. The award shall be issued in writing within three (3) hours after the close of the hearing, and may be issued without a written opinion. If any party desires a written opinion, one shall be issued within fifteen (15) calendar days, but the parties shall not delay compliance with or enforcement of the award due to the issuance of a written opinion. The arbitrator may order cessation of the violation of this Article, and the arbitrator’s award shall be served on all parties by hand or registered mail upon issuance. Should a party found in violation of this Article fail to comply with the arbitrator's award ordering the party to cease the violation, the party in violation shall pay to the affected party as liquidated damages the sum of ten thousand dollars ($10,000.00) per shift for which it failed to comply, or portion thereof, until such violation is ceased. The arbitrator shall retain jurisdiction to resolve any disputes regarding the liquidated damages claimed under this section, but such retention shall not prevent the moving party from seeking judicial enforcement of the initial decision as allowed in Section

4.2.5 below.

4.2.5 The arbitrator’ s award may be enforced by any court of competent jurisdiction upon the filing of this Agreement and all other relevant documents referred to above in the following manner. The party filing such enforcement proceedings shall give written notice to the other party. In a proceeding to obtain a temporary order enforcing the arbitrator's award as issued under this Article, all parties waive the right to a hearing and agree that such proceeding 765
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9 may be ex parte. However, such agreement does not waive any party's right to seek or participate in a hearing for a final order of enforcement. Any court order enforcing the arbitrator's award shall be served on all parties by hand or delivered by certified mail.

4.2.6 Any rights created by statute or law governing arbitration proceedings inconsistent with the above procedure, or which interfere with compliance with the above procedure, are waived by the parties.

4.2.7 The fees and expenses of the arbitrator shall be divided equally between the party instituting the arbitration proceedings provided in this Article and the party alleged to be in breach of its obligation under this Article.

4.2.8 Should either the permanent or the alternate arbitrator identified above no longer work as a labor arbitrator, the City and the Council shall mutually agree to a replacement.

ARTICLE V

PRE-JOB CONFERENCES

5.1 Timing: The Project Manager shall convene and conduct, at a location and time mutually agreeable to the Council, a pre-job conference with the Unions and the representatives of all involved Contractors/ Employers, who shall be prepared to announce craft assignments and discuss in detail the scope of work and the other issues set forth below, at least fourteen (14) calendar days prior to:
a) The commencement of any Covered Work, and
b) The commencement of Project Covered Work on any subsequently awarded Construction Contract.

5.2 The pre-job conference shall be attended by a representative of each participating Contractor and each affected Union, and the Council and City may attend at their discretion.

5.3 The pre-job conference shall include but not be limited to the following subjects:
a) A listing of each Contractor’ s scope of work;
b) The craft assignments;
c) The estimated number of craft workers required to perform the work; d) Transportation arrangements;
e) The estimated start and completion dates of the work; and f) Discussion of pre-fabricated materials.

5.4 Review Meetings: The City and the Council shall have the right to call a meeting of the appropriate parties to ensure the terms of this Agreement are being fulfilled. 766
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10 ARTICLE VI

NO DISCRIMINATION

6.1 The Contractors/Employers and the Unions agree to comply with all antidiscrimination provisions of federal, state, and local law, to protect employees and applicants for employment, on the Project.

ARTICLE VII

UNION REPRESENTATION AND REFERRAL

7.1 The Contractors/Employers recognize the Unions as the sole bargaining representative of all craft employees performing Covered Work under this Agreement, and all such employees must be represented by a Union for the duration of their employment on the Project.

7.2 The Contractors/ Employers shall make and transmit all deductions for Union dues, fees, and assessments that have been authorized by employees in writing in accordance with the applicable Master Agreement. This Agreement does not require any employee of a nonUnion contractor to join a Union or to pay dues or fees to a Union as a condition of working on the Project; however, nothing in this Article is intended to supersede the requirements of the applicable Master Agreements as to Contractors/Employers signatory to such Master Agreements and as to employees of those Contractors/ Employers who are performing Covered Work.

7.3 Authorized representatives of the Unions shall have access to a Project whenever work covered by this Agreement is being, has been, or will be performed on the Project.

7.4 Contractor(s)/Employer(s) performing construction work on a Project shall, in filling craft job requirements, utilize and be bound by the registration facilities and referral systems established or authorized by the Unions signatory hereto. The Contractor(s)/Employer(s) shall have the right to reject any applicant referred by the Union( s), in accordance with the applicable Master Agreement.

7.5 Contractor(s)/Employer(s) shall have the unqualified right to select and hire directly all supervisors above the level of general foreman it considers necessary and desirable, without such persons being referred by the Union(s), unless such craft construction employee is covered by a Master Agreement.

7.6 In the event that referral facilities maintained by the Union( s) are unable to fill the requisition of a Contractor/Employer for employees within a forty-eight (48) hour period Saturdays, Sundays and Holidays excluded) after such requisition is made by the Contractor/Employer, the Contractor/Employer shall be free to obtain the worker(s) from any source. A Contractor/ Employer who hires a worker( s) pursuant to this section shall immediately provide the appropriate Union with the name and address of such worker(s) and shall immediately direct such worker( s) to the appropriate Union hiring hall to be referred for work on the Project.
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11 7.7 It is in the interest of the parties to this Agreement to facilitate employment of Local Area residents and to use resources in the Local Area in construction of the Project. The Local Area" shall be defined as Contra Costa County. The Unions will exert their utmost efforts to recruit sufficient numbers of craft persons to fulfill the referral requirements of the Contractor( s)/ Employer( s). To the extent allowed by law, and consistent with the Unions’ hiring hall provisions, and as long as they possess the requisite skills and qualifications, residents of the Local Area, including journeymen and apprentices, shall be referred for Project work covered by this Agreement.

ARTICLE VIII

WAGES AND BENEFITS

8.1 The Contractors/Employers agree to pay contributions to the vacation, pension and/ or other deferred compensation plan, apprenticeship, worker protection and assistance, and health benefit funds established by the applicable Master Agreement(s) for each hour worked on a Project, in the amounts designated in the applicable Master Agreement( s).

8.2 By signing this Agreement, the Contractors/ Employers adopt and agree to be bound by the written terms of the legally established Trust Agreements described in Section 8.1, which may from time to time be amended, specifying the detailed basis upon which payments are to be made into, and benefits paid out of, such Trust Funds. The Contractors/Employers authorize the parties to such local Trust Agreements to appoint trustees and successor trustees to administer the Trust Funds and hereby ratify and accept the trustees so appointed as if they were appointed by the Contractors/ Employers. The Contractors/ Employers agree to execute a separate subscription agreement(s) when such Trust Fund(s) requires such document(s).

8.3 Wages, Hours, Terms and Conditions of Employment: The wages, hours and other terms and conditions of employment on a Project shall be governed by the Master Agreement of the respective craft, to the extent such Master Agreement is not inconsistent with this Agreement. Where a subject is covered by the Master Agreement and not covered by this Agreement, the Master Agreement will prevail. When a subject is covered by both the Master Agreement and this Agreement, to the extent there is any inconsistency, this Agreement will prevail.

8.4 Holidays: Holidays shall be as set forth in the applicable Master Agreement.

ARTICLE IX

APPRENTICES

9.1 Recognizing the need to develop adequate numbers of competent workers in the construction industry, including on public works projects, the Contractors/ Employers shall employ apprentices from a California state-approved Joint Apprenticeship Training Program in their respective crafts, to perform such work as is within their capabilities and that is customarily performed by the craft in which they are indentured.

9.2 Apprentice ratios will be in compliance with the provisions of the California Labor Code and the applicable state prevailing wage determination. 768
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12 9.3 Consistent with the Master Agreements, there shall be no restriction on the utilization of apprentices in performing the work of their craft provided they are properly indentured and supervised.

ARTICLE X

HELMETS TO HARDHATS

10.1 The Contractors/ Employers and Unions recognize a desire to facilitate the entry into the building and construction trades of veterans who are interested in careers in the building and construction industry. The Contractors/ Employers and Unions agree to utilize the services of the Center for Military Recruitment, Assessment and Veterans Employment (hereinafter Center”) and the Center' s " Helmets to Hardhats" program to serve as a resource for preliminary orientation, assessment of construction aptitude, referral to apprenticeship programs or hiring halls, counseling and mentoring, support network, employment opportunities and other needs as identified by the parties.

10.2 The Unions and Contractors/Employers agree to coordinate with the Center to participate in an integrated database of veterans interested in working on the Projects and of apprenticeship and employment opportunities for the Projects. To the extent permitted by law, the Unions will give credit to such veterans for bona fide, provable past experience.

ARTICLE XI

COMPLIANCE

11.1 It shall be the responsibility of the Contractors /Employers and Unions to investigate and monitor compliance with the provisions of Article VIII of this Agreement.

Nothing in this Agreement shall be construed to interfere with or supersede the usual and customary legal remedies available to the Unions and/ or employee benefit Trust Funds to collect delinquent wages or Trust Fund contributions from Contractors/Employers on a Project. Because the Projects are public works subject to the California Labor Code, the City shall monitor and enforce the Contractors/Employers’ compliance with state prevailing wage requirements as well as this Agreement.

ARTICLE XII

GRIEVANCE ARBITRATION PROCEDURE

12.1 Project Labor Disputes: All disputes involving the application or interpretation of a Master Agreement to which a Contractor/Employer and a Union are parties shall be resolved pursuant to the resolution procedures of the Master Agreement. All disputes relating to the interpretation or application of this Agreement, other than disputes under Article IV and Article XIII, shall be subject to resolution by the grievance arbitration procedures set forth in this Article.

12.2 Employee Discipline: All disputes involving the discipline and/or discharge of an employee working on a Project shall be resolved through the grievance and arbitration provisions contained in the Master Agreement for the craft of the affected employee. No employee working on a Project shall be disciplined or discharged without just cause. 769
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13 12.3 No grievance shall be recognized unless the grieving party (Union or District Council on its own behalf, or on behalf of an employee whom it represents, or a Contractor/ Employer on its own behalf) provides notice in writing to the party with whom it has a dispute within five (5) business days after becoming aware of the dispute but in no event more than thirty ( 30) business days after it reasonably should have become aware of the event giving rise to the dispute. Time limits may be extended by mutual agreement of the parties.

12.4 Grievances shall be settled according to the following procedures:

Step 1: Within five (5) business days after the receipt of the written notice of the grievance, the representative of the involved Union or District Council, or his/her designee, and the representative of the involved Contractor/ Employer, shall confer and attempt to resolve the grievance.

Step 2: If the grievance is not resolved at Step 1, within five (5) business days of the Step 1 meeting or the conclusion of efforts to resolve the grievance at Step 1, the alleged grievance may be referred in writing by either involved party to the Business Manager(s) of the affected Union( s) involved and the Labor Relations Manager of the Contractor/ Employer, or the Contractor/Employer’s designated representative, for discussion and resolution. This time limit may be extended by mutual consent of both parties. Regardless of which party has initiated the grievance, the Union shall notify its International Union representative prior to the Step 2 meeting, and the International Union representative shall advise if it intends to participate in the Step 2 meeting. The Project Manager and the Council shall have the right to participate in any efforts to resolve the dispute at Step 2.

Step 3: If the grievance is not resolved at Step 2, either party may request the dispute be submitted to arbitration within five (5) business days of the Step 2 meeting or the conclusion of efforts to resolve the grievance at Step 2. This time limit may be extended by mutual consent of both parties. Within five (5) business days after referral of a dispute to arbitration, the representatives shall notify the permanent arbitrator designated in Article IV, or if not available, the alternate arbitrator designated in Article IV, for final and binding arbitration. If the permanent arbitrator or the alternate is not available, an arbitrator shall be selected by the alternate striking method from the list of three (3) below. The order of striking names from the list of arbitrators shall be determined by a coin toss, the winner of which shall decide whether they wish to strike first or second.

1. William Riker

2. Carol Vendrillo

3. Morris Davis

12.5 The decision of the arbitrator shall be final and binding on all parties. The arbitrator shall have no authority to change, amend, add to or detract from any of the provisions of the Agreement. The expense of the arbitrator shall be borne equally by both parties. The arbitrator shall arrange for a hearing on the earliest available date from the date of his/her selection. A decision shall be given to the parties within five (5) calendar days after completion 770
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14 of the hearing unless such time is extended by mutual agreement. A written opinion may be requested by a party from the presiding arbitrator.

12.6 The time limits specified at any step of the grievance procedure may be extended by mutual agreement of the parties. However, failure to process a grievance, or failure to respond in writing within the time limits provided above, without an agreed upon extension of time, shall be deemed a waiver of such grievance without prejudice, or without precedent to the processing and/or resolution of like or similar grievances or disputes.

12.7 In order to encourage the resolution of disputes and grievances at Steps 1 and 2 of this grievance procedure, the parties agree that such settlements shall not be precedent setting.

12.8 Retention: At the time a grievance is submitted under this Agreement or any Master Agreement, the Union( s) may request that the City withhold and retain an amount from what is due and owing to the Contractor(s) against whom the grievance is filed, or its higher-tier Contractor, sufficient to cover the damages alleged in the grievance, should the Union( s) prevail.

Provided doing so is not a violation of law or contract, the amount shall be retained by the City until such time as the underlying grievance giving rise to the retention is withdrawn, settled, or otherwise resolved, and the retained amount shall be paid to whomever the parties to the grievance shall decide, or to whomever an arbitrator shall so order.

12.9 Should any of the arbitrators listed in this Article or Article IV no longer work as a labor arbitrator, the City and the Council shall mutually agree to a replacement.

ARTICLE XIII

WORK ASSIGNMENTS AND JURISDICTIONAL DISPUTES

13.1 The assignment of Covered Work will be solely the responsibility of the Employer performing the work involved; and such work assignments will be in accordance with the Plan for the Settlement of the Jurisdictional Disputes in the Construction Industry (the Plan”) or any successor Plan.

13.2 All jurisdictional disputes on this Project between or among the building and construction trades Unions and the Employers parties to this Agreement, shall be settled and adjusted according to the present Plan established by the Building and Construction Trades Department or any other plan or method of procedure that may be adopted in the future by the Building and Construction Trades Department. Decisions rendered shall be final, binding and conclusive on the Employers and Unions parties to this Agreement.

13.3 If a dispute arising under this Article involves the Northern California Carpenters Regional Council or any of its subordinate bodies, an arbitrator shall be chosen by the procedures specified in Article V, Section 5 of the Plan from a list composed of John Kagel, Thomas Angelo, Robert Hirsch and Thomas Pagan, and the arbitrator’ s hearing on the dispute shall be held at the offices of the California State Building and Construction Trades Council in Sacramento, California within fourteen ( 14) calendar days of the selection of the arbitrator. All other procedures shall be as specified in the Plan.
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15 13.4 All jurisdictional disputes shall be resolved without the occurrence of any strike, work stoppage, or slow-down of any nature, and the Employer’s assignment shall be adhered to until the dispute is resolved. Individual employees violating this section shall be subject to immediate discharge.

13.5 Each Employer will conduct a pre-job conference with the Council prior to commencing work. The City and the Project Manager will be advised in advance of all such conferences and may participate if they wish. Pre-job conferences for different Employers may be held together.

ARTICLE XIV

MANAGEMENT RIGHTS

14.1 Consistent with the Master Agreements, the Contractor( s)/Employer( s) shall retain full and exclusive authority for the management of their operations, including the right to direct their work force in their sole discretion. No rules, customs or practices shall be permitted or observed which limit or restrict production, or limit or restrict the working efforts of employees, except that all lawful manning provisions in the Master Agreement shall be recognized.

ARTICLE XV

DRUG AND ALCOHOL TESTING

15.1 The use, sale, transfer, purchase and/ or possession of a controlled substance, alcohol and/or firearms at any time during the work day is prohibited.

15.2 Drug and alcohol testing shall be conducted in accordance with the substance abuse prevention policies set forth in the applicable Master Agreement.

ARTICLE XVI

SAVINGS CLAUSE

16.1 If any article, provision, clause, sentence or word of this Agreement is determined to be illegal or void as being in contravention of any applicable law, by a court of competent jurisdiction, the remainder of the Agreement shall remain in full force and effect. The parties further agree that if any article, provision, clause, sentence or word of the Agreement is determined to be illegal or void, by a court of competent jurisdiction, the parties shall substitute, by mutual agreement, in its place and stead, an article, provision, clause, sentence or word that will meet the objections to its validity and will be in accordance with its original intent.

16.2 In the event a decision of a court of competent jurisdiction materially alters the terms of this Agreement such that the intent of the parties is defeated, then the entire Agreement shall be null and void.

16.3 If a court of competent jurisdiction determines that all or part of the Agreement is invalid and/or enjoins the City from complying with all or part of the Agreement’ s provisions, and the City accordingly determines that compliance with this Agreement will not be required in 772
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16 order to perform work under a Construction Contract, the Unions will no longer be bound by the provisions of Article IV.

ARTICLE XVII
TERM

17.1 This Agreement shall apply until the Completion of each Project in accordance with Sections 1.4 and 2.2.

17.2 This Agreement shall become effective on the Effective Date. It shall remain in full force and effect for a period of five (5) years from the Effective Date. Prior to each five (5) year anniversary of the Effective Date, the City and the Council shall meet to discuss proposed changes, if any, to the Agreement. Absent changes or termination, the Agreement will roll over for an additional five (5) years (“ Extended Term”).

ARTICLE XVIII

MISCELLANEOUS PROVISIONS

18.1 The section headings contained in this Agreement are inserted for convenience only and shall not affect in any way the meaning or interpretation of this Agreement. All defined terms used in this Agreement shall be deemed to refer to the singular and/ or plural, in each instance as the context and/or particular facts may require.

18.2 This Agreement may be executed in counterparts, such that original signatures may appear on separate pages and when bound together all necessary signatures shall constitute an original. Faxed or emailed signature pages transmitted to other parties to this Agreement shall be deemed the equivalent of original signatures.

18.3 Each of the persons signing this Agreement represents and warrants that such person has been duly authorized to sign this Agreement on behalf of the party indicated, and each of the parties signing this Agreement warrants and represents that such party is legally authorized and entitled to enter into this Agreement.

18.4 The parties acknowledge that this is a negotiated agreement, that they have had the opportunity to have this Agreement reviewed by their respective legal counsel, and that the terms and conditions of this Agreement are not to be construed against any party on the basis of such party's draftsmanship thereof.

18.5 All defined terms used in this Agreement shall be deemed to refer to the singular and/ or plural, in each instance as the context and/ or particular facts may require.

SIGNATURES TO FOLLOW]
773
9/28/22
9/28/2022
9/28/22
774
Boilennakers Local # 549
Bricklayers Local # 3
Elevator Constructors Local # 8
Sheet Metal Workers Local # 104
Operating Engineers Local # 3

UNION SIGNATURES
Teamsters Local # 315
Roofers and Waterproofers Local # 81
Iron Workers Local # 378
Northern California District Council of Laborers,
for itself and its affiliated Local Unions
Cement Masons Local # 300
International Brotherhood ofElectrical Workers
Local# 302
District Council # 16, Painters and Allied Trades,
for itself and its affiliated Local Unions
Northern California Carpenters Reg ional Council,
for itself and its affiliated Local Unions
Sprinklerfitters Local # 483
United Association Local # 342
Plasterers Local # 66
United Association Local # 159
United Association Local # 355
Project Stabilization Agreement
for the City ofEl Cerrito 18
Scanned with CamScanner
775
Asbestos Workers Local # 16
Bricklayers Local # 3 •
Elevator Constructors Local # 8
Sheet Metal Workers Local # 104
Operating Engineers Local # 3

UNION SIGNATURES
Teamsters Local # 315
Roofers and Waterproofers Local #81
Iron Workers Local #378
Northern California District Council of Laborers,
for itself and its affiliated Local Unions
Cement Masons Local #300
International Brotherhood of Electrical Workers
Local # 302
District Counci l #16, Painters and Allied Trades,
for itself and its affiliated Local Unions
Northern California Carpenters Regional Council,
for itself and its affiliated Local Unions
Sprinklerfitters Local # 483
United Association Local #342
Plasterers Local # 66
United Association Local #159
United Association Local # 355
Project Stabilization Agreement
for the City ofEl Cerrito 18
776
Asbestos Workers Local # 16
Boilermakers Local # 549
Bricklayers Local # 3
Elevator Constructors Local # 8
Sheet Metal Workers Local # 104
Operating Engineers Local # 3

UNION SIGNATURES
Teamsters Local # 315
Roofers and W aterproofers Local # 81
Iron Workers Local # 378
Northern California District Council of Laborers,
for itself and its affiliated Local Unions
Cement Masons Local # 300
International Brotherhood of Electrical Workers
Local # 302
District Council # 16, Painters and Allied Trades,
for itself and its affiliated Local Unions
Northern California Carpenters Regional Council,
for itself and its affiliated Local Unions
Sprinklerfitters Local # 483
United Association Local # 342
Plasterers Local # 66
United Association Local # 159
United Association Local # 355
Project Stabilization Agreement
for the City ofEI Cerrito 18
777
Project Stabilization Agreement
for the City of El Cerrito 18

UNION SIGNATURES
Asbestos Workers Local #16 Teamsters Local #315
Boilermakers Local #549 Roofers and Waterproofers Local #81 Bricklayers Local # 3 Iron Workers Local #378
Elevator Constructors Local #8 Northern California District Council of Laborers, for itself and its affiliated Local Unions
Sheet Metal Workers Local #104 Cement Masons Local #300 Operating Engineers Local #3 International Brotherhood of Electrical Workers Local #302
District Council # 16, Painters and Allied Trades,
for itself and its affiliated Local Unions
Northern California Carpenters Regional Council,
for itself and its affiliated Local Unions
Sprinklerfitters Local #483 United Association Local #159 United Association Local #342 United Association Local #355 Plasterers Local # 66
778
Asbestos Workers Local #16
Boilermakers Local #549
Bricklayers Local #3
Elevator Constructors Local #8
Operating Engineers Local #3

UNION SIGNATURES
Teamsters Local #315
Roofers and Waterproofers Local #81
Iron Workers Local #378
Northern California District Council ofLaborers,
for itself and its affiliated Local Unions
Cement Masons Local #300
International Brotherhood ofElectrical Workers
Local#302
District Council #16, Painters and Allied Trades,
for itself and its affiliated Local Unions
Northern California Carpenters Regional Council,
for itselfand its affiliated Local Unions
Sprinklerfitters Local #483
United Association Local #342
Plasterers Local #66
United Association Local # 159
United Association Local #355
Project Stabilization Agreement
for the City ofEl Cerrito 18
779

UNION SIGNATURES
Asbestos Workers Local # 16
Boilermakers Local # 549
Bricklayers Local # 3
Elevator Constructors Local # 8
Sheet Metal Workers Local # 104
l)Q/V £:,~
Operating Engineers Local #3
District Council # I6, Painters and Allied Trades,
for itself and its affiliated Local Unions
Sprinklerfitters Local #483
United Association Local #342
Plasterers Local # 66
Teamsters Local # 315
Roofers and Waterproofers Local # 81
Iron Workers Local # 378
Northern California District Council of Laborers,
for itself and its affiliated Local Unions
Cement Masons Local #300
International Brotherhood of Electrical Workers
Local #302
Northern California Carpenters Regional Council,
for itself and its affiliated Local Unions
United Association Local # 159
United Association Local # 355
Project Stabilization Agreement
for the City ofEl Cerrito 18
780
Asbestos Workers Local # 16
Boilermakers Local #549
Bricklayers Local # 3
Elevator Constructors Local # 8
Sheet Metal Workers Local # 104
Operating Engineers Local # 3

UNION SIGNATURES
Teamsters Local # 315
Roofers and W aterproofers Local # 81
Iron Workers Local # 378
Nmthern California Distiict Council of Laborers,
for itself and its affiliated Local Unions
Cement Masons Local # 300
International Brotherhood of Electrical Workers
Local # 302
vf~,
DstrictCouncil # 1 ~ Allied Trades,
for itself and its affiliated Local Unions
Notthern California Carpenters Regional Council,
for itself and its affiliated Local Unions
Sprinklerfitters Local # 483
United Association Local # 342
Plasterers Local # 66
United Association Local # 159
United Association Local # 355
Project Stabilization Agreement
for the City ofEl Cerrito 18
781
Asbestos Workers Local #16
Boilermakers Local #549
Bricklayers Local #3
Elevator Constructors Local #8
Sheet Metal Workers Local # 104
Operating Engineers Local #3
United Association Local #342
Plasterers Local #66

UNION SIGNATURES
Teamsters Local #315
Roofers and Waterproofers Local #81
Iron Workers Local # 378
Northern California District Council ofLaborers,
for itself and its affiliated Local Unions
Cement Masons Local #300
International Brotherhood ofElectrical Workers
Local #302
Northern California Carpenters Regional Council,
for itself and its affiliated Local Unions
United Association Local #159
United Association Local #355
Project Stabilization Agreement
for the City ofEl Cerrito 18
782
Project Stabilization Agreement
for the City of El Cerrito 18

UNION SIGNATURES
Asbestos Workers Local #16 Teamsters Local #315
Boilermakers Local #549 Roofers and Waterproofers Local #81 Bricklayers Local # 3 Iron Workers Local #378
Elevator Constructors Local #8 Northern California District Council of Laborers, for itself and its affiliated Local Unions
Sheet Metal Workers Local #104 Cement Masons Local #300 Operating Engineers Local #3 International Brotherhood of Electrical Workers Local #302
District Council # 16, Painters and Allied Trades,
for itself and its affiliated Local Unions
Northern California Carpenters Regional Council,
for itself and its affiliated Local Unions
Sprinklerfitters Local #483 United Association Local #159 United Association Local #342 United Association Local #355 Plasterers Local # 66
783
Asbestos Workers Local #16
Boilermakers Local #549
Bricklayers Local #3
Elevator Constructors Local #8
Sheet Metal Workers Local #104
Operating Engineers Local #3

UNION SIGNATURES
Teamsters Local #315
Roofers and Waterproofers Local #81
Iron Workers Local #378
Northern California District Council ofLaborers,
for itselfand its affiliated Local Unions
Cement Masons Local #300
International Brotherhood ofElectrical Workers
Local #302
District Council #16, Painters and Allied Trades,
for itselfand its affiliated Local Unions
Northern California Carpenters Regional Council,
for itself and its affiliated Local Unions
Sprinklerfitters Local #483
United Association Local #342
United Association Local #159
United Association Local #355
Project Stabilization Agreement
for the City of El Cerrito 18
784
Asbestos Workers Local #16
Boilermakers Local #549
Bricklayers Local #3
Elevator Constructors Local #8
Sheet Metal Workers Local #104
Operating Engineers Local #3

UNION SIGNATURES
Roofers and Waterproofers Local #81
Iron Workers Local #378
Northern California District Council ofLaborers,
for itself and its affiliated Local Unions
Cement Masons Local #300
International Brotherhood ofElectrical Workers
Local#302
District Council # 16 , Painters and Allied Trades ,
for itself and its affiliated Local Unions
Northern California Carpenters Regional Council ,
for itself and its affiliated Local Unions
Sprinklerfitters Local #483
United Association Local #342
Plasterers Local #66
United Association Local # 159
United Association Local #355
Project Stabilization Agreement
for the City ofEl Cerrito 18
785
Asbestos Workers Local #16
Boilermakers Local #549
Bricklayers Local #3
Elevator Constructors Local #8
Sheet Metal Workers Local #104
Operating Engineers Local #3

UNION SIGNATURES
Teamsters Local #315
Ro ~® ers Lo~I
Iron Workers Local #378
Northern California District Council ofLaborers,
for itselfand its affiliated Local Unions
Cement Masons Local #300
International Brotherhood ofElectrical Workers
Local #302
District Council #16, Painters and Allied Trades,
for itself and its affiliated Local Unions
Northern California Carpenters Regional Council,
for itself and its affiliated Local Unions
Sprinklerfitters Local #483
United Association Local #342
Plasterers Local #66
United Association Local #159
United Association Local #355
Project Stabilization Agreement
for the City ofEl Cerrito 18
786
Project Stabilization Agreement
for the City of El Cerrito 18

UNION SIGNATURES
Asbestos Workers Local #16 Teamsters Local #315
Boilermakers Local #549 Roofers and Waterproofers Local #81 Bricklayers Local # 3 Iron Workers Local #378
Elevator Constructors Local #8 Northern California District Council of Laborers, for itself and its affiliated Local Unions
Sheet Metal Workers Local #104 Cement Masons Local #300 Operating Engineers Local #3 International Brotherhood of Electrical Workers Local #302
District Council # 16, Painters and Allied Trades,
for itself and its affiliated Local Unions
Northern California Carpenters Regional Council,
for itself and its affiliated Local Unions
Sprinklerfitters Local #483 United Association Local #159 United Association Local #342 United Association Local #355 Plasterers Local # 66
787
Asbestos Workers Local #16
Boilermakers Local #549
Bricklayers Local #3
Elevator Constructors Local #8
Sheet Metal Workers Local # 104
Operating Engineers Local #3

UNION SIGNATURES
Teamsters Local #315
Roofers and Waterproofers Local #81
O
msLocal# 378 LJ ;;,
k} T._ "' -(
Notihern California District Council of Laborers,
for itself and its affiliated Local Unions
Cement Masons Local #300
International Brotherhood ofElectrical Workers
Local #302
District Council # 16, Painters and Allied Trades,
for itself and its affiliated Local Unions
Northern California Carpenters Regional Council ,
for itself and its affiliated Local Unions
Sprinklerfitters Local #483
United Association Local #342
Plasterers Local #66
United Association Local #159
United Association Local #355
Project Stabilization Agreement
for the City of El Cerrito 18
788
Project Stabilization Agreement
for the City of El Cerrito 18

UNION SIGNATURES
Asbestos Workers Local #16 Teamsters Local #315
Boilermakers Local #549 Roofers and Waterproofers Local #81 Bricklayers Local # 3 Iron Workers Local #378
Elevator Constructors Local #8 Northern California District Council of Laborers, for itself and its affiliated Local Unions
Sheet Metal Workers Local #104 Cement Masons Local #300 Operating Engineers Local #3 International Brotherhood of Electrical Workers Local #302
District Council # 16, Painters and Allied Trades,
for itself and its affiliated Local Unions
Northern California Carpenters Regional Council,
for itself and its affiliated Local Unions
Sprinklerfitters Local #483 United Association Local #159 United Association Local #342 United Association Local #355 Plasterers Local # 66
789
Asbestos Workers Local #16
Boilermakers Local # 549
Bricklayers Local # 3
Elevator Constructors Local #8
Sheet Meta l Wo rkers Local # 104
Operating Engineers Local #3

UNION SIGNATURES
Teamsters Local # 3 15
Roofers and Waterproofers Local # 81
Iron Workers Local # 378
Northern Californ ia Di strict Council of Laborers,
for itself and its affi li ated Local Unions
Cement Masons Local # 300
International Brotherhood ofElectrical Workers
Local #302
District Council # 16 , Painters and Allied Trades,
for itself and its affiliated Local Unions
Northern California Carpenters Regional Counci l,
for itself and its affiliated Local Unions
Sprinklerfitters Local # 483
United Association Local # 342
Plasterers Local #66
United Association Local # 159
United Associati on Local # 355
Project Stabili zation Agreement
for the City ofEl Cerrito 18
790
Asbestos Workers Local # 16
Boilermakers Local # 549
Bricklayers Local # 3
Elevator Constructors Local # 8
Sheet Metal Workers Local #104
Operating Engineers Local #3

UNION SIGNATURES
Teamsters Local # 315
Roofers and Waterproofers Local # 81
Iron Workers Local #378
Northern California District Council ofLaborers,
for itself and its affiliated Local Unions
Cement Masons Local #300
International Brotherhood ofElectrical Workers
Local #302
District Council # 16, Painters and Allied Trades,
for itself and its affiliated Local Unions
No · er alifomia Carpenters Regional Council,
fi it f and its affiliated Local Unions
Sprinklerfitters Local #483
United Association Local # 342
Plasterers Local #66
United Association Local # 159
United Association Local #355
Project Stabilization Agreement
for the City ofEl Cerrito 18
791
Asbestos Workers Local # 16
Boilermakers Local # 549
Bricklayers Local # 3
Elevator Constructors Local # 8
Sheet Metal Workers Local # 104
Operating Engineers Local # 3

UNION SIGNATURES
Teamsters Local # 315
Roofers and Waterproofers Local #81
Iron Workers Local # 378
Northern California District Council of Laborers,
for itself and its affiliated Local Unions
Cement Masons Local #300
International Brotherhood of Electrical Workers
Local # 302
District Council #16, Painters and Allied Trades,
for itself and its affiliated Local Unions
Northern California Carpenters Regional Council,
for itself and its affiliated Local Unions
Sprinklerfitters Local # 483
United Association Local # 342
Plasterers Local # 66
United Association Local #159
United Association Local # 355
Project Stabilization Agreement
for the City ofEl Cerrito 18
792
Asbestos Workers Local #16
Boilermakers Local #549
Bricklayers Local #3
Elevator Constructors Local # 8
Sheet Metal Workers Local # 104
Operating Engineers Local #3

UNION SIGNATURES
Teamsters Local #315
Roofers and Waterproofers Local #81
Iron Workers Local #378
Northern California District Council of Laborers,
for itself and its affiliated Local Unions
Cement Masons Local # 300
International Brotherhood ofElectrical Workers
Local #302
District Council # 16, Painters and Allied Trades,
for itself and its affiliated Local Unions
Northern California Carpenters Regional Council,
for itself and its affiliated Local Unions
Sprinklerfitters Local # 483
United Association Local #342
Plasterers Local #66
United Association Local # 159
Project Stabilization Agreement
for the City ofEl Cerrito 18
793
Project Stabilization Agreement
for the City of El Cerrito
19 Addendum A

AGREEMENT TO BE BOUND
Date]
Addressee]
Address]
Re: Project Stabilization Agreement for the City of El Cerrito Agreement to be Bound
Dear ________________:

The undersigned confirms that it agrees to be a party to and bound by the Project Stabilization Agreement for the City of El Cerrito (“ Agreement”) as such Agreement may, from time to time, be amended by the parties or interpreted pursuant to its terms.

By executing this Agreement to be Bound, the undersigned subscribes to, adopts and agrees to be bound by the written terms of the legally established trust fund documents as set forth in Section

8.1 of the Agreement, as they may from time to time be amended, specifying the detailed basis upon which contributions are to be made into, and benefits made out of, such trust funds, and ratifies and accepts the trustees appointed by the parties to such trust funds. The undersigned agrees to execute a separate subscription agreement(s) for such trust funds when such trust fund( s) require( s) such document( s).

The obligation to be a party to and bound by the Agreement shall extend to all work covered by the Project Stabilization Agreement for the City of El Cerrito undertaken by the undersigned.

The undersigned shall require all of its subcontractors, of whatever tier, to become similarly bound for all their work within the scope of the Agreement by signing an identical Agreement to be Bound.

This letter shall constitute a subscription agreement, to the extent of the terms of the letter.

CONTRACTOR/ SUBCONTRACTOR:

California Contractor State License No. or Motor Carrier (CA) Permit No.:

Name of Authorized Person (print):

Signature of Authorized Person:

Title of Authorized Person:

Telephone Number of Authorized Person:

Address of Authorized Person:

State Public Works Registration Number:
794
Addendum B

SIDE LETTER
This Side Letter supplements the Project Stabilization Agreement for the City ofEl Cerrito (" Agreement"), entered into by and between the City ofEl Cerrito (" City") and the Contra Costa Building and Cons,tou ction Trades Council (" Council"), and its affiliated local Unions (" Unions"), on the ~ j day of Sf"Pffh:'.\,BlrR , 2022 , with respect to the El Cerrito del .

Norte Complete Streets Improvement project also known as the Del Norte Complete Streets project ( collectively " Del Norte Project").

Notwithstanding any provision ofthe Agreement, and in furtherance of the mutual benefits and commitments therein, the City and the Council ( collectively the " Parties ") hereby agree that the Del Norte Project shall not be subject to or covered by the Agreement.

The Parties ' agreement to waive the application of the Agreement to the Del Norte Project does not constitute a waiver ofthe application ofthe Agreement to any other Projects as defined in the Agreement. All other provisions ofthe Agreement shall remain in full force and effect.

The Council has been duly authorized to execute this Side Letter on behalf ofthe Unions , who consent to the terms herein. Each ofthe undersigned Parties warrant and represent that they are legally authorized to enter into this Side Letter.

IN WITNESS WHEREOF , this Side Letter is effective as ofthe date last indicated below.

CONTRA COSTA COUNTY BUILDING

AND CONSTRUCTION TRADES

COUNCIL
By:~~- 4.Y~
Bill Whitney, CEO 0

CITY OF EL CERRITO
By: t1/D),1,tLf;uiLJ~4P
Paren Pinkos, City Manager
Date: 9/28/22
Project Stabili zation Agreement
for th e City ofEl Cerrito
20 795
Project Stabilization Agreement
for the City of El Cerrito
21 ATTEST:

By: ________________________________
Holly M. Charléty, City Clerk
Date: __________________________
APPROVED AS TO FORM:

By: ________________________________
Sky Woodruff, City Attorney
Date: __________________________
154015\ 1289594
5175673.1
9/28/22
9/28/22
796

DISCUSSION AND/OR ACTION

AGENDA ITEM

3. 22-698
1 STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of November 14, 2023
TO: Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Edwin Gato, Director of Finance
SUBJECT: FY 23-24 1
st Quarter Budget Report
RECOMMENDED ACTION:

Receive the reports on the FY 23-24 1
st Quarter Budget Report for the period ending
September 30, 2023, and the Preliminary FY 22-23 General Fund Annual Results (Unaudited) for June 30, 2023.

COMMISSION/SUBCOMMITTEE ACTION AND RECOMMENDATION:

This report will be presented to the Finance Commission at their regular meeting on November 15, 2023.

EXECUTIVE SUMMARY:

Quarterly financial reporting is being prepared by the City staff as a means of providing the community, Council, and the organization with an overview of financial information for the General Government Funds. The primary information provided in the quarterly report is a comparison of the annual budget amounts to actual revenues and expenditures for operating departments. All financial information is based on preliminary, unaudited information reported from the municipal financial system as of the report date. Seasonal variations or special occurrences in municipal operations may affect the proportion of revenues achieved or expenditures incurred to date.

DISCUSSION:

FY 21-22 General Fund Preliminary Year End Results
This report was prepared without the final audit results and is subject to change depending upon the results of the audit in progress. The audit will not be completed until January at the earliest.
797
22-698
2 The following is the preliminary unaudited summary of the year-end annual budget results as of June 30, 2023:

Preliminarily, in FY 22-23, revenues were higher than anticipated, and expenditures were slightly over budget due to some unforeseen activities. As a result, the net General Fund ended the year with a positive $2.4 million available cash balance, $1.9 million better than the projected FY 22-23 Budget.

The City Council amended the financial policy that the General Fund surplus or available cash balance will be allocated as follows:
 25% to Pension (Section 115 Trust).
 25% to operating reserve until it reaches 25% of total operating expenses.  50% to fund unmet/deferred infrastructure and maintenance needs.

Staff will apply this policy after the year-end audit is concluded.

FY 23-24 1st Quarter Budget Report
This report summarizes the City’s financial performance for the three months ended September 30, 2023. Financial analysis for this report is provided for the General Fund, Capital Improvement Program, and combined information for other City funds on a cash basis. Cash basis means that revenues are recognized at the time revenues are received and expenditures are recognized at the time payment is processed.

The expenditure budgets include adjustments for encumbrances, carryovers and any supplemental appropriations made by the City Council as of September 30, 2023.

GENERAL FUND
The General Fund is the chief operating fund for the City and includes multiple programs that provide direct programs, activities, and services to the citizens of Hercules.

The Fiscal Year FY 23-24 annual budget for the General Fund projected revenues is $18.5 million. As of September 30, 2023, the General Fund's actual revenues were $3.6 million, or 20% of the FY 23-24 estimated revenues.

The FY 23-24 expenditure appropriations for the General Fund are $19.5 million. As of September 30, 2023, actual expenditures were $5.4 million, or 28% of the FY 23-24 budget.

As is typical with the General Fund, the first quarter information is insufficient to make projections on how the fiscal year might track. The primary purpose of this report is to Budget Actual Variance
Beginning Available Cash Balance 1,442,194$ 1,442,194$ -$ Revenues 17,295,000 19,471,355 2,176,355
Expenditures 18,235,587 18,503,085 (267,498)
Net Results (940,587) 1,908,857 968,270
Ending Available Cash Balance $501,607 $2,410,464 $1,908,857 798
3 highlight what significant deviances, positive and negative, we have seen thus far in comparison to a typical first quarter and to highlight areas that might require focus in the future.

General Fund Revenue Analysis
General Fund
Revenues
About 84% of the General Fund revenues comes from taxes in the following categories:
 Utility Users Tax
 Sales Tax
 Property Taxes
 Vehicle License Fees (VLF)
 Business License Fees
 Document Transfer Tax
 Franchise Fees
 Transient Occupancy Tax
The City derives a significant portion of its General Fund revenues from economically sensitive sources such as property taxes, sales taxes and utility users’ taxes. When one or more of these key revenue sources deviate from projections, funding for future programs and services may be affected.

Sales Taxes, the largest revenue source for the City’s General Fund, are remitted to the City from the State on an ongoing basis. Sales Tax revenues are higher by 3% compared to the same quarter last year. This revenue source is highly concentrated within a few major operators. Over 70% of the City’s sales tax is generated by its top three producers. The following chart depicts the source of the City’s sales revenues by industry group compared to the same quarter in previous years:

Taxes
84%
Program
Revenues
9%
Cost allocation
4%
Use of Money &
Property
2%
Transfers and
others
1%
799
4 The Utility User’s Tax (UUT) is imposed by the City on the consumption of utility services, including (but not limited to) electricity, gas, water, sewer, telephone, sanitation, and cable television. The City determines the rate of the tax and the use of its revenues. As of September 30, 2023, $962,744 or 26% of the estimated revenues have been collected.

The City’s property taxes are received between December and April. Therefore, there are no property taxes that have been received to date. The City continually realizes stable property tax-related revenue growth based on prior-year trends and this year’s report from the County Assessor’s Office.

General Fund - Expenditure Analysis
Operating expenses, by category and department, are tracked at approximately 28% of the annual budget through September 30, 2023. Expenditures on Worker’s Compensation and General Liability Insurance, and transfers to debt service are paid in full at the beginning of the fiscal year. Overall, there is not enough information this early to determine if expenditures will deviate significantly from the budget due to the timing of spending. Staff will revisit this budget at mid-year or as of December 31 and prepare a Mid-Year Budget adjustment as necessary based on that analysis.

SEWER ENTERPRISE FUND
The Enterprise Fund group consists of the City's Sewer Fund and requires proprietary fund balance reporting, including cash, reserves, fixed assets, and related long-term debt.

Sufficient resources are maintained to ensure the completion of current projects and programs and to cover debt service. The Sewer Fund's net position on September 30, 2023, was $33 million.
800
5 SPECIAL REVENUE FUNDS
Actual revenues on September 30, 2023, were $812K, and actual expenditures were $1.2 million. The Special Revenue Funds are driven by grants or other specific funding sources for specific purposes, such as transportation, building permit counter activity, other restricted programs, etc. Such funding sources are restricted in nature, which requires revenues and expenditures to be tracked differently from the City’s primary operating fund, the General Fund. Revenues from the Landscaping and Lighting Assessment District (LLAD) are included in the property taxes. The assessment fees are received between December and April. Therefore, no assessment fees from the LLAD have been received to date. However, there is sufficient funding for the completion of current projects or programs, except for LLAD for Victoria by the Bay and Stormwater, which are already in deficit, and the addition of any new programs or projects is dependent on the availability of future funding sources.

CAPITAL PROJECT FUNDS
These funds derive their revenues from a combination of fees from new development, Gas Tax, and Regional Measure J, most of which generate revenues and expenditures in different patterns from the City’s other operating funds. Because these funds are budgeted multi-year, the project may experience some cost overruns. Typical reasons for these overruns include underestimating costs in initial project proposals and field changes required to complete a project but were unanticipated when the contract was awarded. To mitigate the risk of cost overruns, the Finance Department continues to work with the Departments to ensure processes are in place to prevent overspending, including providing project balances are kept up to date, and adequate contingencies are in place before the commencement of the project. The Capital Improvement Projects Funds had an aggregate expense of $55.4 million to date as illustrated in attachment 4. There is sufficient funding to complete the projects.

DEBT SERVICE FUNDS
The Debt Service Funds group accounts for the long-term debt of the City. As of June 30, 2023, the unaudited fund balances of all debt service funds were $2.1 million. Sufficient funds are transferred from a variety of sources to meet debt service obligations as they come due. The funding source is dependent upon the purpose of the debt.

INTERNAL SERVICE FUNDS
The Internal Service Funds group includes those funds created for the accumulation of reserves for vehicle replacement, technology and equipment replacement, and facility maintenance. Revenues for these funds are derived from administrative (cost recovery) charges to other funds, primarily the General Fund. The fund balance of the Internal Service Funds group was $1.5 million as of September 30, 2023.

FIDUCIARY FUNDS
The Fiduciary Funds group includes the assessment district bond that are not obligations of the City and a trust fund established for the Other Post-Employment Benefits (OPEB).

SUCCESSOR AGENCY
The Successor Agency is an entity separate from the City and accounted for in separate trust funds that are used to account for tax increment monies received and payments of 801
6 items approved by the Oversight Board in the Required Obligation Payment Schedule (ROPS). Governmental accounting standards require that the full amount of debt outstanding be recorded as part of these funds. The unaudited deficit balance as of June 30, 2023, was $42 million, which reflects bonded indebtedness to be paid from future Redevelopment Property Transfer Tax Fund (RPTTF) revenue.

FISCAL IMPACT OF RECOMMENDATION:

The FY 23-24 1
st quarter report includes information detailing the variances between budgets and actual for revenues, and expenditures, and the Preliminary FY 22-23 General Fund Annual Results (Unaudited).

ATTACHMENTS:

1. General Fund Year-To-date Revenue Report through September 30, 2023

2. General Fund Year-To-date Expenditure Report through September 30, 2023

3. All Funds Year-to-date Revenues and Expenditures Report through September 30, 2023

4. Active Capital Projects report through September 30, 2023 802
Description Budget
FY 23-24
1st Quarter
%
Collected
FY 22-23
1st Quarter
$ Change from
Prior Year
% Change
from Prior
Year
Sales Tax 6,178,700 1,659,605 27% 1,604,813 54,792 3%
Utility User Tax 3,756,633 962,744 26% 960,167 2,577 0% Vehicle License Fee (VLF) 2,512,260 - 0% - - 0%
Property Taxes 1,603,000 - 0% - - 0%
Franchise Fees 923,100 167,926 18% 161,502 6,424 4%
Business Licenses 279,480 45,080 16% 42,781 2,299 5%
Transfer Tax 148,920 21,058 14% 17,252 3,806 22%
Transient Occupancy Tax 116,280 - 0% - - 0%
Intergovernmental 48,960 18,905 39% 1,213 17,692 1459%
Fines & Forefeitures 38,760 2,916 8% 7,072 (4,156) -59% Program Revenues
Community Development 173,075 41,978 24% 43,744 (1,766) -4% Parks and Recreation 1,300,640 387,846 30% 379,127 8,719 2% Police 116,700 10,437 9% 18,304 (7,867) -43%
Public Works 104,854 6,888 7% 23,692 (16,804) -71%
Other 11,220 1,812 16% 3,383 (1,571) -46%
Use of Money & Property 292,320 59,313 20% 58,432 881 2% Cost allocated to other funds 736,352 186,256 25% 171,000 15,256 9% Transfers In 156,727 39,182 25% 37,500 1,682 4%
18,497,981 3,611,946 20% 3,529,982 81,964 2%
$0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 Sales Tax
Utility User Tax
Vehicle License Fee (VLF)
Property Taxes
Other Taxes
Intergovernmental
Fines & Forefeitures
Program Revenues
Use of Money & Property
Cost allocated to other funds
Transfers In
City of Hercules
General Fund Year-to-date Revenue Report through 9/30/2023 Estimated Revenues vs. Actual
FY 22-23 1st Quarter FY 23-24 1st Quarter Budget
803
Description Budget
FY 23-24
1st Quarter % Used
FY 22-23
1st Quarter
$ Change from
Prior Year
% Change
from Prior
Year
Police 8,475,617 1,967,721 23% 1,882,745 84,976 5%
Public Works 619,334 167,160 27% 98,108 69,052 70%
Community Development 998,404 148,074 15% 60,684 87,390 144% Parks and Recreation 2,532,406 633,762 25% 549,821 83,941 15% City Council 335,677 66,479 20% 85,713 (19,234) -22%
City Manager 583,429 121,641 21% 106,153 15,488 15%
Workers Comp/General Liability 1,468,039 1,197,660 82% 1,030,608 167,052 16% Human Resources 440,413 59,756 14% 63,028 (3,272) -5%
Legal 281,190 30,022 11% 42,371 (12,349) -29%
City Clerk/PIO 520,334 70,648 14% 69,946 702 1%
Finance 1,800,470 280,533 16% 234,825 45,708 19%
Non-Department 873,316 100,000 11% 100,000 - 0%
Transfers Out 535,896 535,897 100% 575,981 (40,084) -7% 19,464,525 5,379,353 28% 4,899,983 479,370 10%
$0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 Police
Public Works
Community Development
Parks and Recreation
City Council
City Manager
Workers Comp/General Liability
Human Resources
Legal
City Clerk/PIO
Finance
Non-Department
Transfers Out
DDR Settlement with DOF
City of Hercules
General Fund Year-to-date Expenditure Report through 9/30/2023 Budget vs. Actual
FY 22-23 1st Quarter FY 23-24 1st Quarter Budget
804
FY 23-24 Year to Date (YTD) Fund Balance Report - All Funds Through September 30, 2023
General Fund
Preliminary
Beginning
Available Cash
Balance
Revenues and
Transfers In
Expenditures and
Transfers Out Net Activities
Ending Available
Balance Revenue Expenditure
Fund Number Fund Name 7/1/23 9/30/23 % Collected 9/30/23 % Used 9/30/23 9/30/23 Estimate Budget 100 GENERAL FUND 2,410,464 3,611,946 20% 5,379,353 28% (1,767,407) 643,057 18,497,981 19,464,525 2,410,464 3,611,946 5,379,353 (1,767,407) 643,057 18,497,981 19,464,525 Special Revenue Funds
Preliminary
Beginning
Available Balance
Revenues and
Transfers In
Expenditures and
Transfers Out Net Activities
Ending Available
Balance Revenue Expenditure
Fund Number Fund Name 7/1/23 9/30/23 % Collected 9/30/23 % Used 9/30/23 9/30/23 Estimate Budget 101 ASSET SEIZURE 223,783 - 0% 18,056 132% (18,056) 205,727 - 13,717 201 AB 3229 COPS Program 33,283 86,159 57% - 0% 86,159 119,442 150,000 156,727 220 CITYWIDE L&L DIST 83-2 107,664 - 0% 487,524 22% (487,524) (379,860) 2,361,669 2,251,840 221 VICTORIA BY THE BAY L&L (407,456) - 0% 186,120 28% (186,120) (593,576) 520,580 659,483 222 HERCULES VILLAGE L&L DIST 158,835 - 0% 40,443 17% (40,443) 118,392 178,982 241,484 223 BAYWOOD ASSESS 04-1 L&L 45,485 - 0% 32,207 19% (32,207) 13,278 173,230 173,999 224 BAYSIDE ASSESS DIST L&L 134,746 - 0% 29,356 19% (29,356) 105,390 160,665 155,835 225 ARTERIAL ROADWAYS 472,701 - 0% 57,759 18% (57,759) 414,942 322,637 328,804 231 STORMWATER ASSESSMENT (144,286) - 0% 101,762 23% (101,762) (246,048) 381,000 448,167 241 DIF-GEN PUBLIC FACILITIES 146,378 - 0% - 0% - 146,378 34,950 - 242 COMMUNITY DEVELOPMENT FND 170,839 - 0% - 0% - 170,839 60,000 - 243 DEVELOPMENT FEE FUND 72,562 - 0% - 0% - 72,562 - -
244 DIF-POLICE FACILITIES 264,665 - 0% 830 1% (830) 263,835 - 155,741 246 DIF-FIRE FACILITIES 1,642 - 0% - 0% - 1,642 - -
247 DIF-PARK & REC 188,970 - 0% 380 0% (380) 188,590 - 39,766 249 PUBLIC BENEFIT FEE 984,326 - 0% - 0% - 984,326 - -
261 DIF-TRAFFIC FACILITIES 126,101 - 0% - 0% - 126,101 - - 262 STATE GAS TAX FUND 435,379 149,526 20% 141,979 10% 7,547 442,926 748,017 1,449,543 263 MEASURE "C" STREET FUND 118,043 526,533 117% 99,103 19% 427,430 545,473 450,000 529,965 264 STMP TRAFFIC IMPACT FUND - - 0% - 0% - - - 4,753
267 GENERAL PLAN UPDATE 949,790 29,008 12% - 0% 29,008 978,798 240,000 8,726 291 SOLID WASTE AND RECYCLING 777,516 - 0% 3,635 1% (3,635) 773,881 180,000 244,426 521 REGIONAL WATER QUALITY 52,993 - 0% - 0% - 52,993 - - 266 BART (PARK & RIDE) 325,831 21,296 12% 5,335 3% 15,961 341,792 182,000 182,000 268 SB1 (RMRA) 581,064 - 0% 30,139 21% (30,139) 550,925 644,976 145,587 5,820,854 812,522 12% 1,234,628 17% (422,106) 5,398,748 6,788,706 7,190,563 Enterprise Funds
Preliminary
Beginning
Available Balance
Revenues and
Transfers In
Expenditures and
Transfers Out Net Activities
Ending Available
Balance Revenue Expenditure
Fund Number Fund Name 7/1/23 9/30/23 % Collected 9/30/23 % Used 9/30/23 9/30/23 Estimate Budget 420 WASTEWATER - OPERATION 24,905,221 3,784 0% 496,314 6% (492,530) 24,412,691 6,068,734 7,945,405 421 WASTEWATER - CAPITAL 10,514,633 - 0% 1,788,274 16% (1,788,274) 8,726,359 132,000 11,427,601 35,419,854 3,784 0% 2,284,588 12% (2,280,804) 33,139,050 6,200,734 19,373,006 This fund is used to account for all revenues and expenditures necessary to carry out basic governmental activities of the City. The General Fund includes activities for police, planning, public works, operations and maintenance, and legal and administration.

Special Revenue Funds account for the proceeds of specific revenue sources (other than trusts for individuals, private organizations, or other governments, or for major capital projects) that are restricted or committed to expenditures for specified purposes.

This fund accounts for wastewater treatment to the cities of Hercules and Pinole and for the maintenance of the City's sewer lines and related facilities. It is a self-supporting activity which provides services on a user charge basis to residences and businesses.
805
FY 23-24 Year to Date (YTD) Fund Balance Report - All Funds Through September 30, 2023
Internal Service Funds
Preliminary
Beginning
Available Balance
Revenues and
Transfers In
Expenditures and
Transfers Out Net Activities
Ending Available
Balance Revenue Expenditure
Fund Number Fund Name 7/1/23 9/30/23 % Collected 9/30/23 % Used 9/30/23 9/30/23 Estimate Budget 450 VEHICLE REPLACEMENT FUND 953,271 - 0% 8,180 4% (8,180) 945,091 153,000 220,000 460 IT EQUIPMENT REPLACEMENT 762,039 1,808 0% 440,554 33% (438,746) 323,293 996,333 1,339,974 470 FACILITY MAINTENANCE FUND 494,365 - 0% 213,603 19% (213,603) 280,762 938,955 1,110,421 2,209,675 1,808 0% 662,337 25% (660,529) 1,549,146 2,088,288 2,670,395 Debt Service Funds
Preliminary
Beginning
Available Balance
Revenues and
Transfers In
Expenditures and
Transfers Out Net Activities
Ending Available
Balance Revenue Expenditure
Fund Number Fund Name 7/1/23 9/30/23 % Collected 9/30/23 % Used 9/30/23 9/30/23 Estimate Budget 672 2003B DEBT SERVICE PFA 65,234 - 0% 1,600 0% (1,600) 63,634 563,316 564,937 673 2009 DEBT SERVICE PFA 2,063,873 - 0% 1,250 0% (1,250) 2,062,623 907,159 907,159 388 EQUIPMENT LEASE - 235,897 100% 235,897 100% - - 235,896 235,896 2,129,107 235,897 14% 238,747 14% (2,850) 2,126,257 1,706,371 1,707,992 Capital Projects Funds
Preliminary
Beginning
Available Balance
Revenues and
Transfers In
Expenditures and
Transfers Out Net Activities
Ending Available
Balance Revenue Expenditure
Fund Number Fund Name 7/1/23 9/30/23 % Collected 9/30/23 % Used 9/30/23 9/30/23 Estimate Budget 295 FEDERAL GRANTS - - 0% - 0% - - - -
296 STATE GRANTS - - 0% - 0% - - 538,506 538,506
300 CITY CAPITAL PROJ-SINGLE 611,516 - 0% 115,166 26% (115,166) 496,350 300,000 435,575 301 ENERGY CONSERVATION PROJECT 117,688 - 0% - 0% - 117,688 - 1,450 387 WATER QUALITY RET BASIN 234,152 - 0% 7,311 16% (7,311) 226,841 50,000 47,000 963,356 - 122,477 (122,477) 840,879 888,506 1,022,531
Agency Funds
Preliminary
Beginning
Available Balance
Revenues and
Transfers In
Expenditures and
Transfers Out Net Activities
Ending Available
Balance Revenue Expenditure
Fund Number Fund Name 7/1/23 9/30/23 % Collected 9/30/23 % Used 9/30/23 9/30/23 Estimate Budget 382 ASSMT DIST 05-01 DEBT SVC 399,420 - 0% 192,801 84% (192,801) 206,619 229,088 229,088 501 TAYLOR WOODROW MAINT LMOD 71,969 - 0% - 0% - 71,969 - - 511 GASB 45 OPEB LIABILITY 2,673,351 - 0% 19,170 18% (19,170) 2,654,181 120,000 104,600 3,144,740 - 211,971 (211,971) 2,932,769 349,088 333,688 These funds are used to account for assets held in trust by the City for the benefit of individuals or other entities. Financial Statements may further distinguish fiduciary funds as either trust or agency funds; a trust fund generally exists for a longer period of time than an agency fund.

These funds account for activities related to vehicle replacement, IT equipment replacement, and facilities maintenance.

These funds are used to account for money that will be used to pay the interest and principal of long-term debts. Bonds used by a government to finance major construction projects, to be paid by tax levies over a period of years, require a deby service fund to account for their repayment. The debts of special assessment and proprietary funds are serviced within those funds, rather than by a separate debt service fund.

These funds are used to account for the construction or acquisition of fixed assets, such as buildings, equipment and roads. Depending on its use, a fixed asset may instead be financed by a special revenue fund or a proprietary fund. A capital project fund exists only until completion of the project. 806
City of Hercules
FY 23-24 Year-to-date Capital and Maintenance Project Report Through September 30, 2023
As of 09/30/23 % Expensed
Project
Number Description Previous Years As of 09/30/23
Year-to-Date
Total Previous Years As of 09/30/23
Year-to-Date
Total
Outstanding
Encumbrances
Remaining
Budget
and
Encumbered
63001 HERCULES RAIL STATION 46,377,537 - 46,377,537 46,377,537 - 46,377,537 - - 100% 63056 HERCULES HUB 1,694,531 300,000 1,994,531 632,226 56,621 688,847 604,323 701,361 65% 63041 SEWER TRUNK LINE REHAB 14,351,000 - 14,351,000 3,140,103 1,883,836 5,023,939 9,327,061 - 100% 63049 UPPER SEWER TRUNK LINE 100,000 100,000 200,000 40,396 - 40,396 - 159,604 20% 63042 WILLOW/PALM PEDESTRIAN 1,681,940.00 100,000 1,781,940 209,113 752,662 961,775 820,165 - 100% 63047 2021 REHAB PROJ SYCAMORE 1,803,716 - 1,803,716 1,062,691 850 1,063,541 25,036 715,139 60% 63052 BAYWOOD TREE REPLACEMENT 162,000 162,000 140,000 - 140,000 - 22,000 86% 63053 WOOFIELD PARK BACKSTOP 20,000 20,000 20,000 - 20,000 - - 100% 63054 POLICE DEPT EXPANSION 160,000 160,000 4,259 830 5,089 - 154,911 3% 63057 COUNTYWIDE SMART SIGNALS - 567,597 567,597 - - - - 567,597 0% 63058 COUNCIL CHAMBER IMPROV - 50,000 50,000 - - - - 50,000 0% 63060 CORP YARD DRAIN IMPROV - 25,000 25,000 - - - - 25,000 0% 63061 PARK IMPROVEMENTS PROJECT - 200,000 200,000 - 14,266 14,266 774 184,960 8% 63062 LUPINE HILL STABILIZATION - 100,000 100,000 - - - 100,000 0% 63063 BEECHNUT PARK 254,000 254,000 - - - - 254,000 0%
ARP212 WILLOW/PALM SIDEWALK INST 250,000 - 250,000 - - - - 250,000 0% ARP213 REFUGIO TENNIS COURT TREE 6,000 - 6,000 - - - - 6,000 0% ARP214 SIDEWALK & SAFE WALKWAYS 100,000 - 100,000 64,708 35,292 100,000 - - 100% ARP215 CMMTY SWIM CTR FENCE REPL 100,000 - 100,000 91,987 - 91,987 - 8,013 92% ARP216 BLDG & DEFRRED MAINTENANC 250,000 - 250,000 88,105 - 88,105 - 161,895 35% ARP221 BUILDING FACILITIES PLAN 75,000 - 75,000 - 20,200 20,200 45,880 8,920 88% ARP222 PARKS MASTER PLAN 150,000 - 150,000 150,000 - 150,000 - - 100% BR2202 SWING SETS 100,000 - 100,000 - 50,380 50,380 - 49,620 50% BR2207 TRAFFIC CALMING VILLAGE P 122,000 - 122,000 88,147 - 88,147 - 33,853 72% LLD231 REFURNISH GAZEBBO/RAILING 55,000 - 55,000 - - - - 55,000 0% LLD232 OHLONE DOG PK TREE REM/PR 85,000 - 85,000 - - - - 85,000 0% LLD233 TREE PLANTING/REM OPEN SP 50,000 60,000 110,000 61,650 - 61,650 - 48,350 56% LLD234 AERATOR REF VALLEY PARKS 60,000 - 60,000 42,744 2,474 45,218 - 14,782 75% LLD242 TREE MITIGATION REPL PROG 150,000 150,000 - 48,850 48,850 60,550 40,600 73% LLD241 TREE MITIGATION-OPEN SPC 50,000 50,000 - 50,000 50,000 - - 100% PW0004 REPAIR LEAK IN LIBRARY 100,000 7,000 107,000 - 5,312 5,312 4,094 97,594 9% PW2303 PW EMERGENCY REPAIRS 250,000 250,000 228,444 536 228,980 18,501 2,519 99% 68,107,724 1,959,597 70,067,321 52,442,110 2,922,109 55,364,219 10,906,384 3,796,718 95% FUNDING SOURCES % Collected
DIF-POLICE FACILITIES 160,000 160,000 4,259 830 5,089 154,911 3% DIF-PARK & REC 60,000 60,000 - 380 380 59,620 1%
DIF-TRAFFIC FACILITIES 12,949 12,949 - - - 12,949 0%
GENERAL FUND 1,403,000 550,000 1,953,000 1,491,986 142,931 1,634,917 318,083 84% GRANTS 49,855,919 802,506 50,658,425 46,930,281 688,192 47,618,473 3,039,952 94% FACILITY REPLACEMENT 100,000 82,000 182,000 - 5,312 5,312 176,688 3% LLAD 83-2 ZONE 10 270,000 160,000 430,000 124,394 101,324 225,718 204,282 52% BAYWOOD LLAD NO. 2004-1 162,000 162,000 140,000 - 140,000 22,000 86% SEWER 14,451,000 100,000 14,551,000 3,180,499 1,883,836 5,064,335 9,486,665 35% STATE GAS TAX 1,026,827 165,091 1,191,918 248,855 - 248,855 943,063 21% MEASURE J RETURN TO SOURCE 184,889 184,889 - - - 184,889 0% SB1 (RMRA) 321,140 321,140 221,836 99,304 321,140 - 100% BART 100,000 100,000 - - - 100,000 0%
SOLID WASTE 100,000 100,000 100,000 - 100,000 - 100%
68,107,724 1,959,597 70,067,321 52,442,110 2,922,109 55,364,219 14,703,102 79% Budget Actual Expenditures
807

DISCUSSION AND/OR ACTION

AGENDA ITEM

4. 22-700

STAFF REPORT TO THE CITY COUNCIL
DATE: Regular Meeting of November 14, 2023
TO: Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Tim Rood, Community Development Director
SUBJECT: “Small Business Saturday” Extension of Yiftee Digital Gift Card Program
RECOMMENDED ACTION:

Staff recommends that the City Council adopt a resolution approving the third amendment to the Yiftee Digital Gift Card program to add an additional $25,000 for this contract, funded by the General Fund, and authorize the City Manager to execute all related documents that are substantially similar to the approved draft.

BACKGROUND:

On April 26, 2022, the City Council authorized the City Manager to execute an agreement with Yiftee for a Shop Local/Gift Card program for $65,000. At the February 28, 2023 meeting, the City Council authorized the extension of the program and first amendment to the agreement, adding an additional $75,000 due to the successful launch of the pilot program. At the June 13, 2023 meeting, the City Council authorized the Eat Local Hercules catering incentive program and the second amendment to the agreement, adding $50,000.

The Yiftee Community Digital Gift Card program is a cost-effective way to stimulate the local economy and assist small businesses in recovery. It also provides additional savings to residents who shop locally.

Yiftee has no set-up or monthly costs, and the additional City funds will pay for:
 The $1+5% eDelivery fee (purchaser fee) plus a $1 bonus gift fee per card. 808
22-700
 A bonus gift card to incentivize the use of the program and provide a benefit to all community members.
 Branding costs associated with the development of the “shop local Hercules” campaign.
 Marketing costs for advertisement and promotion of the program and related point-of-sale signage and posters for participating businesses.

Shop Local Program Bonus Gift Incentive
Many communities are integrating a bonus gift incentive to the community to encourage the success of their programs, amplify the infusion of dollars into the local economy and provide incentives to shop local. Typically, and past practice in Hercules, has been ‘buy one and get one free’ for residents. Hercules has the discretion to set the level of incentive appropriate to our community, in addition to limits on purchases per customer.

ANALYSIS
Staff and the City’s economic development consultant, HdL EconSolutions, recommend the Council authorize a $25,000 Yiftee program tied to Small Business Saturday, which is November 25, 2023. The City and the Bay Front Chamber will both publicize the promotion.

Small Business Saturday
Small Business Saturday is an annual event that encourages consumers to support local, independently-owned businesses in their communities. It falls on the Saturday after Thanksgiving and serves as a counterpoint to Black Friday and Cyber Monday, which often prioritize larger retailers and e-commerce giants.

Historically, reported projected spending among U.S. consumers who shopped at independent retailers and restaurants on Small Business Saturday reached an estimated $17.9 billion, according to the 2022 Small Business Saturday Consumer Insights Survey commissioned by American Express.

Founded by American Express in 2010 and officially cosponsored by U.S. Small Business Administration (SBA) since 2011, Small Business Saturday has become an important part of small businesses’ busiest shopping season. SBA, Women Impacting Public Policy (WIPP), and American Express will be kicking off the 2023 holiday season by encouraging consumers to support the nation’s nearly 32 million independent businesses.

With this initiative, the City and Bay Front Chamber will join in to encourage Herculeans to Shop Local this Small Business Saturday and all holiday season long. 809
Program Guidelines
Staff is proposing the following incentive system for the Program, which will be available to all purchasers of community gift cards:
 Buy a gift card valued at greater than $5 and receive a bonus gift card equal to the value purchased, with a maximum purchase limit of $100 per card with the promotion.
 A limit of 2 cards per customer
 The Gift Card (original purchase amount) does not expire. Still, the staff recommends that the bonus gift card expire six months (120 days) after purchase (any expired unspent bonus gift funds would be returned to the City for redistribution after a restocking fee).
 The City will pay all purchasing and delivery fees during the Pilot Program while funds remain (first come, first serve).

The above guidelines are consistent with the program guideline amendments approved by the City Council on March 28, 2023, except that the number of bonus cards per purchaser has been reduced from 5 to 2. This was a recommendation from Yiftee aimed at maximizing the number of people purchasing cards, given the limited budget for this offering.

Eligible Businesses
Consistent with past program guidelines, staff is recommending the following parameters for business participation in the program:
 Is a for-profit business or City of Hercules Recreation Department class taught by a contractor in one of the following categories:
o Retail
o Restaurant/Cafe
o Personal Services limited to the following only:
 hair stylists
 barbers
 estheticians
 massage therapists
 gyms
 nail salons
 dry cleaners
 tanning salons
 pet groomers
 fitness/specialty studios including martial arts, yoga, dance, and music
 Operates from a physical storefront or City facility (home-based businesses are not eligible)
810
 Maintains a current City business license
 Has no open code enforcement actions
 Has 20 or fewer full time equivalent employees as of December 1, 2021  Is either independently owned/operated or a locally-owned chain (i.e., local outlets of chains or franchises headquartered outside of Hercules are not eligible)
FISCAL IMPACT:

Funds are available and will be appropriated in the General Fund under expenditure account #100-0000-611.90-00 (Project No. ARP218) for this proposed third amendment to the existing agreement. The proposed third amendment increases the total contract amount under this agreement by $25,000, for a total amount of $215,000.

Contract Agreement No. Approval
Contract
Approval Date
Authorized
Amount
Original Contract 22-012 Council Resolution #22-032 4/26/2022 $ 65,000 1st Amendment Council Resolution #23-010 2/28/2023 $ 75,000 2nd Amendment Council Resolution #23-032 6/13/2023 $ 50,000 3rd Amendment $ 25,000
Total $ 215,000
ATTACHMENTS:

1. Resolution

2. Draft Third Amendment to the original agreement

3. Second Amendment to the original agreement

4. First Amendment to the original agreement

5. Original Agreement
811
1 RESOLUTION NO. 23-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERCULES APPROVING

A THIRD AMENDMENT TO AN AGREEMENT WITH YIFTEE IN THE AMOUNT OF $25,000 FOR THE “SMALL BUSINESS SATURDAY” DIGITAL GIFT CARD INCENTIVE PROGRAM, AND AMENDING THE FY 23-24 BUDGET INCREASING ITS APPROPRIATION BY $25,000
WHEREAS, the City of Hercules values its locally owned small businesses and seeks to improve the economic climate for small businesses; and
WHEREAS, Small Business Saturday is an annual event that encourages consumers to support local, independently owned businesses in their communities. It falls on the Saturday after Thanksgiving and serves as a counterpoint to Black Friday and Cyber Monday, which often prioritize larger retailers and e-commerce giants; and WHEREAS, the City entered into an Agreement with Yiftee for the Shop Local/Gift Card Program on April 26, 2022 for $65,000; and
WHEREAS, due to successful launch of the pilot program, the City Council approved the First Amendment to the Agreement, adding $75,000 to the program and increasing the budget by $75,000; and
WHEREAS, to encourage large employers in the vicinity of Hercules to patronize Hercules restaurants and caterers, the City Council approved the Second Amendment to the Agreement, adding $50,000 to the program and increasing the budget by $50,000; and
WHEREAS, the Third Amendment would add $25,000 to the Yiftee Gift Card program.

Staff is proposing that the budget be increased by $25,000 for the introduction of the Small Business Saturday pilot program;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hercules as follows:

1. The Third Amendment to the Agreement with Yiftee is hereby approved and the City Manager is authorized to execute the third amendment to the agreement.

2. The City Council hereby approves an amendment to the City’s FY 23-24 Budget to add $25,000 for the introduction of the Small Business Saturday Yiftee Gift Card program.
812
2 The foregoing Resolution was duly and regularly adopted at a regular meeting of the City Council of the City of Hercules held on the 14
th day of November 2023 by the following
vote of the Council:

AYES:

NOES:

ABSTAIN:

ABSENT:
____________________________
Alexander Walker-Griffin, Mayor
ATTEST:

Eibleis Melendez, City Clerk
813
Original Agreement No. 22-012
Yiftee for a Shop Local/Gift Card Program
AMENDMENT NO. 3
Approving Revised Attachment B to add additional $25,000

1. Parties. The parties to this Contract Amendment are the City of Hercules, a public body corporate and the following named Contractor:

Yiftee
325 Sharon Park Drive #215, Menlo Park, CA 94025
(650) 533-0938
Attention: Donna Novitsky
[email protected]
The parties to this Contract Amendment do mutually agree and promise as follows:

2. Purpose. This Amendment No. 3 is being entered into to amend an existing contract between the City and Contractor which was approved by the City Council of the City of Hercules on April 26, 2022, by Resolution No. 22-032; amended on February 28, 2023 by Resolution No. 23-010; and amended on June 13, 2023 by Resolution No. 23-032. Said contract shall hereinafter be referred to as the "Original Contract" and is incorporated herein by reference.

3. Original Contract Provisions. The parties hereto agree to continue to abide by those terms and conditions of the Original Contract, and any amendments thereto, which are unaffected by this Contract Amendment Agreement.

4. Amendment. This Amendment No. 3 is intended to amend the Original Contract and previously approved amendments (collectively, the "Amended Contract") thereto to provide for additional compensation in an amount not to exceed $25,000, for a total contract amount of $215,000.

5. Amendment Approval: This Amendment No. 3 is hereby approved by the City Council of the City of Hercules on this 14
th day of November, 2023.

6. Signatures. These signatures attest the parties' agreement hereto:

City of Hercules
s/_______________________________
Dante Hall, City Manager
Date: ___________________________
Approved as to form:

By ______________________________
Patrick Tang, City Attorney
Contractor: Yiftee
s/_______________________________
_________________________________
Name/Title
Date: ___________________________
814
Professional Services Agreement Agreement No. <22-012>
Contract Version 082321 City Attorney Approved Edits 051722 Resolution No. <22-032> Community Card ARPA Program