SECTION 8
PROSECUTION AND PROGRESS
G8.01 SUBCONTRACTING. The Contractor shall give its personal attention to the fulfillment of the Contract and shall keep the Work under its direct control and supervision.
No subcontractor will be recognized as such and nothing in the Contract Documents shall create any contractual relationship between the City and any subcontractor. The Contractor is as fully responsible to the City for the acts and omissions of the Contractor's subcontractors and of persons either directly or indirectly employed by them, as Contractor is for the acts and omissions of persons directly employed by Contractor.
The Contractor shall perform with its own organization Contract work amounting to not less than fifty percent (50%) of the original total Contract price, unless otherwise specified in the Special Provisions.
Where an entire item is subcontracted, the value of the subcontracted work will be based on the Contract item bid price. When a portion of an item is subcontracted, the value of work subcontracted will be based on the estimated percentage of the Contract item bid price, determined from information submitted by the Contractor, subject to approval by the Engineer.
Attention is directed to the requirements of (commencing with California Public Contract Code Section 4100) the California Public Contract Code, which are applicable to this Contract. Each bidder shall list in its Bid the name and business address of each subcontractor to whom the bidder proposes to subcontract a portion of the work, and shall list each subcontractor, licensed by the State of California, proposed by the bidder to specially fabricate and install a portion of the work. Said list shall include a description of the portion of the work which shall be done by each subcontractor. The bidder shall execute and submit with its Bid the "List of Subcontractors" on the form included in this book.
Additional forms may be obtained from the Engineer. The Contractor shall not, without the written consent of the City, either substitute any person as subcontractor in place of the subcontractor designated in the original List of Subcontractors, or sublet or subcontract any portion of the work in excess of one-half of one percent of the total amount of its proposal for which he did not originally designate a subcontractor.
When a portion of the work which has been subcontracted by the Contractor is not being prosecuted in a manner satisfactory to the City, the subcontractor shall be removed immediately by Contractor on the request of the City, and shall not again be employed on the work.
The on -site production of materials produced by any person or entity other than the Contractor's forces shall be considered as subcontracted. The erection, establishment or reopening of on -site plants for production of materials and the operation thereof in the production of materials for use on the work, shall conform to the requirements relating to labor set forth in the Contract Documents.
The Contractor shall require, by written agreement, each subcontractor to be bound to the Contractor by terms of the Contract Documents and to assume toward the Contractor all the obligations and responsibilities which the Contractor, by the Contract Documents, assumes toward the City, to the extent of the work to be performed by the subcontractor. Each subcontract agreement shall preserve and protect the rights of the City under the Contract Documents with respect to the work to be performed by the subcontractor, so that subcontracting will not prejudice such rights.
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G8.02 ASSIGNMENT. The performance of the Contract may not be assigned by Contractor except upon the written consent of the City. Consent will not be given to any proposed assignment which would relieve the original Contractor or its surety of their responsibilities under the Contract nor will the City consent to any assignment of a part of the work to be performed under the Contract.
The Contractor may assign monies due or to become due him under the Contract and such assignment will be recognized by the City, if given proper notice thereof, to the extent permitted by law, but any assignment of monies shall be subject to all proper set -offs in favor of the City and to all deductions provided for in the Contract, and particularly all money withheld, whether assigned or not, shall be subject to being used by the City for the completion of the work in the event that the Contractor should be in default therein.
G8.03 NOTICE TO PROCEED. As soon as practicable after execution of the Contract by the City, approval by the City of the Contract Bonds and all other documents listed in the Contract, and after receipt of acceptable insurance certificates by the City, and any other items as may be required in the Contract Documents, a written Notice to Proceed will be mailed or hand delivered to the Contractor. The effective date of the Notice to Proceed will be the date stated as such in the Notice to Proceed, provided that the effective date will not be earlier than the calendar day following the issuance of the Notice to Proceed.
G8.04 BEGINNING OF WORK. The Contractor is not authorized to perform any work on the Project until he has received a Notice to Proceed from the City. No later than ten (10) calendar days after the effective date of such Notice to Proceed, the Contractor shall commence work and shall diligently prosecute the same to completion within the time limit provided in the Special Provisions.
The Contractor shall notify the Engineer, in writing, of its intent to begin work at least 72 hours before work is begun and shall specify the date the Contractor intends to start. If the Project has more than one location of work, a separate notice shall be given for each location.
Should the Contractor begin work in advance of receiving the Notice to Proceed and providing notice to the Engineer, any work performed by Contractor in advance of such notice shall be considered as having been done by Contractor at its own risk and as a volunteer.
G8.05 SCHEDULES AND PROGRESS REPORTS. The Contractor shall, within the time specified in the Special Provisions after the effective date of the Notice to Proceed, submit to the Engineer the specified number of copies of a construction schedule covering its operations for the work. Failure to submit at any time a proper and adequate schedule as specified shall be adequate reason alone to delay approval of any partial payments as an improperly submitted payment request until such required schedule is submitted and accepted. The construction schedule shall be in the form required by the Special Provisions or Specifications. The schedule shall show the order in which the Contractor proposes to carry out the work and the dates on which he expects to start and finish each part or division of the work (including procurement of materials, plant and equipment). The construction schedule shall be consistent with the time and order of work requirements of the Contract Documents and shall provide for expeditious and practicable execution of the work; provided that it shall not show a completion date earlier than the date by which the Contract must be completed pursuant to Section G8.07 and the corresponding Special Provision unless this early completion date was submitted with the Contractor's Proposal and the Contractor agrees to sign a Change Order reducing the completion time to that proposed by its schedule. If the Contractor desires to revise its construction schedule, or if it becomes necessary to revise it due to major changes, he shall submit the specified number of copies of the revised schedule for review and comment by the Engineer.
The Contractor shall, within ten (10) days after the effective date of the Notice to Proceed, also submit GC -51
to the Engineer three copies of a schedule of submittals which is coordinated with the Contractor's construction schedule and within the review times provided in the Contract Documents.
For a payment request to be complete and proper, the Contractor shall submit to the Engineer, at the time of submittal of the invoice for work completed (See Section G9.08), a schedule summary report in a form and of sufficient detail and character as specified in the Special Provisions. The schedule summary report shall include the updated current construction schedule and shall specify whether the project is on schedule and, if not, the reasons therefor and actions being taken to get back on schedule if work is behind schedule. The monthly schedule summary report shall also indicate the delivery status of major and critical items of purchased equipment and material, the status of shop drawings and field fabricated work and such other information as may be required and set out in the Special Provisions.
G8.06 SITE MEETINGS. The Contractor shall schedule meetings with the Engineer and each active subcontractor at the work site weekly, or at such other frequency as specified in the Special Provisions. Each subcontractor shall have present a competent representative to report the conditions of its work and to discuss problems.
G8.07 TIME OF COMPLETION. The Contractor shall complete all or any designated portion(s) of the work called for under the Contract in all parts, manner and requirements within the time set forth in the Special Provisions.
G8.08 ADDITIONAL SHIFT WORK. The time limits specified for the completion of the work contemplated may be insufficient to permit completion of the work by the Contractor working a normal number of hours per day or week on a single shift basis. Where additional shifts or premium time pay are necessary to ensure that the work will be completed within the time limits specified, any resulting additional costs will be considered to be included in the price paid for the various Contract items of work and no additional compensation to Contractor will be allowed therefor.
If the Contractor desires to carry on work at night or outside regular working hours, he shall give timely written notice to the Engineer to allow satisfactory arrangements to be made for observing the work in progress.
G8.09 CITY'S RIGHT TO STOP THE WORK. If the Contractor fails to promptly correct work which is not in accordance with the requirements of the Contract Documents or persistently fails to carry out work in accordance with the Contract Documents, the Engineer may, in writing, order the Contractor to stop the work, or any portion thereof, until the cause for such order has been eliminated.
The Contractor shall immediately comply with a written order of the Engineer to stop the Work. The Work stopped shall be resumed as and when ordered by the Engineer.
G8.10 LIQUIDATED DAMAGES. It is agreed by the parties herein to the Contract that in case all the work called for under the Contract, in all parts and requirements, is not completed within the number of days as set forth in the Special Provisions, damage will be sustained by the City and that it is and will be impracticable and extremely difficult to ascertain and determine the actual damage which the City will sustain in the event of and by reason of such delay; and it is therefore agreed that the Contractor shall pay to the City, as liquidated damages for delay and not as a penalty, the sum set forth in the Special Provisions per day for each and every calendar day's delay in completing the work in excess of the number of days prescribed; and the Contractor agrees to pay said liquidated damages herein provided for, and further agrees that the City may deduct the amount thereof from any monies due or that may become due the Contractor under the Contract if the Contractor has not paid within seven (7) days any demand from the City for liquidated damages. If, based on the current
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approved progress schedule and rate of progress, it is determined by the Engineer that completion will exceed the Contract time, as extended by any change orders, the Engineer may prospectively assess and withhold liquidated damages from any progress payments to Contractor. If and at such time as progress by Contractor improves to indicate timely completion, liquidated damages so withheld may be released at the next regular progress payment.
G8.11 DELAYS AND EXTENSIONS OF TIME. The Contractor will be granted an extension of time and will not be assessed with liquidated damages or the cost of engineering and inspection for any portion of the delay in completion of the work beyond the time set forth in the Special Provisions caused by unforeseeable causes beyond the control and without the fault or negligence of the Contractor or subcontractor. Examples of such causes include acts of God or of the public enemy, fire, floods, epidemics, quarantine restrictions, strikes and other work stoppages caused by a labor dispute, shortage of materials as conditioned below, and freight embargoes, changes made under Section 4.04 ("Changes") or acts or neglect of the City or Engineer not contemplated by the Contract Documents. In all cases, any extension of time is conditioned on the following: (1) that the cause is not due in any respects to the fault of the Contractor or subcontractor and the Contractor has taken reasonable precautions to prevent delays due to such cause, (2) that the Contractor has developed and implemented work -around plans, schedules and actions to mitigate or avoid project completion delays to the extent practical and possible, (3) that any delayed activities are on the critical path and (4) that the Contractor notifies the Engineer in writing within ten (10) calendar days from the beginning of such delay specifying the nature of the delay, the number of days actually delayed or expected to be delayed and the measures taken to prevent, mitigate or minimize the delay. Failure by Contractor to submit written notice to the Engineer within this time shall constitute an absolute waiver by Contractor of any claim for a time extension; failure to submit all the required information by Contractor shall be sufficient cause for denial of the request for a time extension; and failure by Contractor to have a current and updated schedule on file with the Engineer at the time of request for a time extension or claim of delay shall be sufficient cause alone for the City to reject a claim and deny a request for a time extension.
Further, no extension of time will be granted to Contractor for a delay caused by a shortage of or delay in delivery of materials, unless the Contractor promptly furnishes to the Engineer documentary proof that he has diligently made on a timely basis every effort to obtain such materials from all known sources within reasonable reach of the work and further proof, in the form of schedule data as required in Section G8.05, that the inability to obtain such materials when originally planned did in fact cause a delay in final completion of the entire work which could not be compensated for by revising the sequence of the Contractor's operations. Only the physical shortage of material will be considered as a cause for extension of time, and no consideration will be given to any claim that material could not be obtained at a reasonable, practical or economical cost or price, unless it is shown to the satisfaction of the Engineer that such material could have been obtained only at exorbitant prices entirely out of line with current rates, taking into account the quantities involved and the usual practices in obtaining such quantities.
The term "shortage of materials," as used in this Section, shall apply only to materials, articles, parts or equipment which are standard items and shall not apply to materials, parts, articles or equipment which are processed, made, constructed, fabricated or manufactured to meet the specific requirements of the contract.
No extension of time will be granted for storms or adverse weather conditions which may reasonably be expected for the area in which the work is being performed, based on official records of monthly precipitation and other historical data. The intensity alone of any single or series of storms shall not be the basis for a time extension. In submitting a bid the bidder is certifying its understanding of the conditions for any time extension for storms or adverse weather and that he has included full GC -53
consideration of delays in work due to weather conditions that reasonably can be expected in the project area.
No extensions of time will be granted for delays that have no measurable impact on the completion of the total work under the Contract. When extensions of time are granted, they will be limited to the period equivalent to the actual number of workdays lost on the critical path or controlling operation of construction, taking into account the extent to which that delay could be decreased by reasonable mitigation and work around measures by the Contractor or its subcontractor. All requests for extensions of time must be supported with a critical path analysis showing the critical path and impacts to it.
Within a reasonable period of time after the Contractor submits the notice and information required by this Section, the Engineer will determine whether an extension of time is justified and, if so, the number of days for the extension.
The Contractor shall have no claim for damage or compensation against City for any delay or hindrance and shall be fully compensated by an extension of time provided as set forth in this Section.
Notwithstanding the preceding sentence, the Contractor may only submit a claim for compensable delay caused by acts or omissions of the City but only if such acts or omissions: (1) cause delay which is unreasonable in the circumstances and (2) are not such as to be within the contemplation of the parties. It is expressly agreed that delays by the City in providing access to the work site are not within the contemplation of the parties but that delays by the City in reviewing shop drawings and submittals and the risk of delays due to errors or omissions in the Contract Drawings are within the contemplation of the parties as expectable events in the construction process.
G8.12 TERMINATION OF RIGHT TO PROCEED. If the Contractor should appear to the Engineer to be in default and the Contractor fails to remedy its default within ten (10) days after receipt from the Engineer of notice of such default, the City may terminate the Contractor's right to proceed with the Work or that portion which the Engineer determines is most directly affected by the default.
The term "default" for purposes of this Section includes, but is not limited to, the performance of work in violation of the terms of the Contract; abandonment, assignment or subletting of the Contract without approval of the City; bankruptcy of Contractor or appointment of a receiver for Contractor's property; refusal or failure by Contractor to properly to prosecute the work; Contractor's use of materials, supplies, plant or equipment of improper quality or quantity; refusal or failure by Contractor to use an adequate number of properly skilled workers; failure by Contractor to provide proper workmanship; failure by Contractor to take effective steps to end a prolonged labor dispute; and Contractor's performance of the Contract in bad faith.
Upon the City's termination of the Contractor's right to proceed with the Work, or a portion of it, the City shall have the right to complete the Work, or the portion involved, by whatever means and methods it deems expedient, including the hiring of others on such terms as the City deems advisable. The City shall have the right to take possession of the Contractor's materials, plant, tools, equipment and property of any kind provided by or on behalf of the Contractor for the purpose of the Work, or a portion of them, without being responsible to the Contractor for fair wear and tear. The Contractor shall have no rights in such property during its use by the City. The City shall not be required to obtain the lowest prices for completing the Work or a portion of it but shall make such expenditures as, in the City's sole judgment, best accomplish such completion.
The expense of completing such work or portion thereof, together with a reasonable charge for engineering, managerial and administrative services, as certified by the City, shall be charged to the Contractor, and the expense so charged shall be deducted by the City out of such monies as may be GC -54
due or may at any time thereafter become due to the Contractor. In case such expense is more than the sum which otherwise would have been payable to the Contractor under the Contract, then the Contractor or its surety or sureties shall promptly pay the amount of such excess so due to the City.
The City may, in its sole discretion, withhold all or any part of any progress payments otherwise due the Contractor until completion and final settlement of the work covered by such notice of default.
G8.13 TERMINATION OF CONTRACT.
A. Termination for Cause. The City may terminate the Contract if the Contractor:
1. persistently or repeatedly fails or refuses to supply enough properly skilled workers or proper materials;
2. fails to make payment to subcontractors for materials or labor in accordance with the respective agreements between the Contractor and subcontractor;
3. persistently disregards laws, ordinances or rules, regulations or orders of a public authority having jurisdiction; or
4. otherwise is guilty of a material breach of a provision of the Contract Documents. A "default" as defined in Section G8.12 shall constitute a substantial breach of the Contract Documents.
When any of the above reasons exist, the City may, without prejudice to any other rights or remedies of the City under this Contract or otherwise, upon ten (10) days' written notice, terminate the Contract and may:
1. take possession of the site and of all materials, equipment, tools and construction equipment and machinery thereon owned by the Contractor;
2. finish the work by whatever means the City deems expedient.
When the City terminates the Contract under this Section, the Contractor shall not be entitled to receive any further payments to which the Contractor is actually due until the Work is completed and accepted by the City, and the Contractor is properly due any further payment.
The provisions of the last two paragraphs of Section G8.12 shall apply if the City terminates the Contract.
The City will issue the Contractor a written notice specifying that the Contract is to be terminated.
Upon receipt of said written notice and, except as otherwise directed in writing by the Engineer, the Contractor shall:
1. stop all work under the Contract except that work specifically directed to be completed prior to acceptance;
2. perform work the Engineer deems necessary to secure the project for termination;
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3. remove equipment from the site of work, as directed by the Engineer;
4. take such action as is necessary to protect the work and materials from damage;
5. notify all subcontractors and suppliers that the Contract is being terminated and that their contracts or orders are not to be further performed unless otherwise authorized in writing by the Engineer;
6. provide the Engineer with an inventory list of all materials previously produced, purchased or ordered from suppliers for use in the work and not yet used in the work, including its storage location, and such other information as the Engineer may request;
7. dispose of materials not used in the work as directed by the Engineer.
It shall be the Contractor's responsibility to provide the City with good title to all materials purchased by the City hereunder, including materials for which partial payment has been made as provided in Section G9.10, "Partial Payments," of these General Conditions and with bills of sale or other documents of title for such materials;
8. subject to the prior written approval of the Engineer, settle all outstanding liabilities and all claims arising out of subcontracts or orders for materials terminated hereunder. To the extent directed by the Engineer, the Contractor shall assign to the City all the rights, title and interest of the Contractor under subcontracts or orders for materials terminated hereunder;
9. furnish the Engineer with the documentation required to be furnished by the Contractor under the provisions of the Contract including, on projects as to which state and/or federal funds are involved, all documentation required under the state and/or federal requirements included in the Contract; and
10. take such other actions as the Engineer may direct.
B. Termination for Convenience. The City, at its sole discretion, may terminate this Contract in whole, or from time to time in part, at any time and for any reason, whenever the City shall determine that such termination is in the best interests of the City. Any termination which is not based on the circumstances set forth in Subsection A above, shall be effected by delivery to the Contractor of a notice of termination specifying the extent to which performance of work under the contract is terminated, and the date upon which such termination becomes effective. In such event, Contractor shall be paid for all actual substantiated direct costs of materials furnished and work performed up to the date of termination and such additional compensation as the City deems proper and reasonable to effect termination.
Upon Contractor's receipt of a written notice of termination for convenience, the Contractor shall cease work as to those portions of the project so terminated and shall undertake the steps outlined in Subsection A above.
In the event that the City terminates this Contract under Subsection A above and it is determined for GC -56
any reason that there was not sufficient cause to do so, the City's termination automatically will convert to a termination for convenience under this Subsection B and the terms and conditions outlined in this Subsection automatically will be applied to effectuate the Contract termination.
G8.14 CITY AND NON -CITY FACILITIES. The Contractor shall protect from damage those utilities and City and non -City facilities that are to remain in place, be installed, relocated or otherwise arranged.
Attention is directed to the possible existence of any and all facilities not shown, and of facilities in a location different from that which is indicated. The Contractor shall take all steps necessary to ascertain the exact location of all facilities prior to doing work which may damage such facilities or interfere with their service. Where the location of a facility is not indicated or is in doubt, the Contractor shall make such excavations and explorations as are necessary to ascertain the correct location. The cost of such excavations and explorations will be considered as a part of the cost of other items of work and no additional payment will be made to Contractor. Such excavations and exploratory work shall also not entitle the Contractor to an extension of time.
Where it is determined by the Engineer that the rearrangement of an underground facility, the existence of which is not shown on the drawings, is essential in order to accommodate the work, the Engineer will provide for the rearrangement of such facility by other forces or, when so ordered by Change Order, such rearrangement shall be performed by the Contractor and will be paid for as provided under the Change Order.
The Contractor shall maintain all utility facilities placed by him in temporary locations, and all utilities within the construction area not required to be relocated but which are required to be shored or supported during the construction period. The cost of such shoring, supports and maintenance shall be borne by the Contractor and no other compensation shall be due the Contractor for this work.
The cost of providing and maintaining all necessary or required temporary structures, of making any necessary repairs, replacements, or similar operations, or furnishing indemnity or other bonds, if required, and all costs required by this Section shall be paid by the Contractor and shall be included in the prices bid in the schedule for other items of work.
G8.15 TEMPORARY UTILITIES. The Contractor shall make its own arrangements with utility companies for any services he may require in performance of the work of this Contract and shall pay all costs of these services directly to these utility organizations.
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SECTION 9
MEASUREMENT AND PAYMENT
G9.01 MEASUREMENT OF QUANTITIES. All work to be paid for at a Contract price per unit of measurement will be measured by the Engineer in accordance with United States Standard Measures unless otherwise specified in the Special Provisions or Bid Schedule.
G9.02 SCOPE OF PAYMENT. The Contractor shall accept the compensation provided in the Contract as full payment for furnishing all labor, materials, tools, equipment and incidentals necessary to the completed work and for performing all work contemplated and embraced under the Contract; also for loss or damage arising from the nature of the work, or from the action of the elements, or from any unforeseen difficulties which may be encountered during the prosecution of the work until the acceptance by the City; and for all risks of every description connected with the prosecution of the work, also for all expense incurred in consequence of the suspension or discontinuance of the work as herein specified; and for completing the work according to the Contract Documents. Neither the payment of any estimate nor of any retained percentage shall relieve the Contractor of any obligation to make good any defective work or materials.
No compensation will be made in any case for loss of anticipated profits.
Except as specifically provided otherwise, no separate payment will be made for work covered in any of these General Conditions, the Special Provisions, the Greenbook, and if used, the Technical Specifications, and the cost thereof will be considered as included in the prices paid for the various Contract items included in the Bid.
If the "payment" clause in the Contract Documents relating to any unit price in the bid schedule requires that the said unit price cover and be considered compensation for certain work or material essential to the item, this same work or material will not also be measured nor paid for under any other pay item which may appear elsewhere in the Contract Documents.
G9.03 FORCE ACCOUNT PAYMENT. When extra work or other work done pursuant to a Change Order is to be paid for on a force account basis, the labor, materials and equipment used in the performance of such work shall be subject to the approval of the Engineer and compensation will be determined as follows:
A. Work Performed by Contractor. The Contractor will be paid the direct costs for labor, materials and equipment used in performing the work determined as hereafter provided in Sections 9.03A(1), "Labor," 9.03A(2), "Materials," and 9.03A(3), "Equipment Rental," except where agreement has been reached to pay in accordance with Section 9.03B, "Work Performed by Special Forces or Other Special Services."
To the total of the direct costs computed as provided in Sections 9.03.A(1), "Labor," 9.03.A(2), "Materials" and 9.03.A(3), "Equipment Rental," there will be added a markup of 33 percent to the cost of labor, 15 percent to the cost of materials, 15 percent to the cost of Contractor - owned equipment, and 15 percent to rented equipment.
The above markups shall constitute full compensation, covering the cost of general supervision, overhead, profit and any other general expense not specifically designated as cost or equipment rental in Sections 9.03.A(1), (2) and (3). The total payment made as provided GC -58
above shall be deemed to be the actual cost of such work and shall constitute full compensation therefor.
When work paid for on a force account basis is performed by subcontractor(s), the Contractor shall reach agreement with subcontractor(s) as to the distribution of the payment made by the City for such work. No additional payment therefor will be made by the City by reason of the performance of the work by a subcontractor(s) or other forces. (1) Labor. The Contractor will be paid the cost of labor for the workmen (including foremen when authorized by the Engineer), used in the actual and direct performance of the work. The cost of labor, whether the employer is the Contractor, subcontractor or other forces, will be the sum of the following:
(la) Actual Wages. The actual wages paid shall include any employer payments to or on behalf of the workmen for health and welfare, pension, vacation and similar purposes.
(lb) Labor Surcharge. To the actual wages, as defined in Section
9.03A(la), will be added a labor surcharge set forth in the California Department of Transportation publication entitled Labor Surcharge And Equipment Rental Rates, which is in effect on the date upon which the work is accomplished and which is a part of the Contract. Said labor surcharge shall constitute full compensation for all payments imposed by State and Federal laws and for all other payments made to, or on behalf of, the workmen, other than actual wages as defined in Section
9.03A(la) and subsistence and travel allowance as specified in Section 9.03A(Ic). (2) Materials. The City reserves the right to furnish such materials as it deems advisable, and the Contractor shall have no claims for costs and markup on such materials.
Only materials furnished by the Contractor and necessarily used in the performance of the work will be paid for. The cost of such materials will be the cost to the purchaser, whether Contractor, subcontractor or other forces, from the supplier thereof, except as the following are applicable:
(2a) If a cash or trade discount by the actual supplier is offered or available to the purchaser, it shall be credited to the City notwithstanding the fact that such discount may not have been taken.
(2b) If materials are procured by the purchaser by any method which is not a direct purchase from and a direct billing by the actual supplier to such purchaser, the cost of such materials shall be deemed to be the price paid to the actual supplier as determined by the Engineer plus the actual costs, if any, incurred in the handling of such materials. (2c) If the materials are obtained from a supply or source owned wholly or in part by the purchaser, the cost of such materials shall not exceed the price paid by the purchaser for similar materials furnished from said source on Contract items or the current wholesale price for such materials delivered to the job site, whichever price is lower, less any discounts as provided in Section 9.03A(2a).
(2d) If the cost of such materials is, in the opinion of the Engineer, excessive, then the cost of such material shall be deemed to be the lowest current wholesale price at which such materials were available in the quantities concerned delivered to the job site, less any discounts as provided in Section 9.03A(2a).
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(2e) If the Contractor does not furnish satisfactory evidence of the cost of such materials from the actual supplier thereof within sixty (60) days after the date of delivery of the materials or within fifteen (15) days after acceptance of the Contract, whichever occurs first, the City reserves the right to establish the cost of such materials at the lowest current wholesale prices at which such materials were available in the quantities concerned delivered to the location of the work, less any discounts as provided in Section 9.03A(2a).
(3) Equipment Rental. The Contractor will be paid for the use of equipment at the rental rates listed for such equipment in the California Department of Transportation publication entitled Labor Surcharge And Equipment Rental Rates, which is in effect on the date upon which the work is accomplished and which is a part of the Contract, regardless of ownership and any rental or other agreement, if such may exist, for the use of such equipment entered into by the Contractor except that for those pieces of equipment with a rental rate of $10.00 per hour or less as listed in the Labor Surcharge And Equipment Rental Rates publication and which are rented from a local equipment agency, other than Contractor owned, the Contractor will be paid at the hourly rate shown on the rental agency invoice or agreement for the time used on force account work as provided in Section 9.03A(3a), "Equipment on the Work." If a minimum equipment rental amount is required by the local equipment rental agency, the actual amount charged will be paid to the Contractor. If it is deemed necessary by the Engineer to use equipment not listed in the said publication, a suitable rental rate for such equipment will be established by the Engineer. The Contractor may furnish any cost data which might assist the Engineer in the establishment of such rental rate. If the rental rate established by the Engineer is $10.00 per hour or less, the provisions above concerning rental of equipment from a local equipment agency shall apply.
The rental rates paid as above provided shall include the cost of fuel, oil, lubrication, supplies, small tools, necessary attachments, repairs and maintenance of any kind, depreciation, storage, insurance and all incidentals.
Operators of rented equipment will be paid for as provided in Section 9.03A(1), "Labor."
All equipment shall, in the opinion of the Engineer, be in good working condition and suitable for the purpose for which the equipment is to be used.
Unless otherwise specified, manufacturer's ratings and manufacturer approved modifications shall be used to classify equipment for the determination of applicable rental rates.
Equipment which has no direct power unit shall be powered by a unit of at least the minimum rating recommended by the manufacturer.
Individual pieces of equipment or tools not listed in said publication and having a replacement value of $500 or less, whether or not consumed by use, shall be considered to be small tools and no payment will be made therefor.
Rental time will not be allowed while equipment is inoperative due to breakdowns.
(3a) Equipment on the Work. The rental time to be paid for equipment on the work shall be the time the equipment is in operation on the extra work being performed, and in addition, shall include the time required to move the equipment to the location of the extra work and return it to the original location or to another location requiring no more time that GC -60
that required to return it to its original location, except that moving time will not be paid for if the equipment is used at the site of the extra work on other than such extra work. Loading and transporting costs will be allowed, in lieu of moving time, when the equipment is moved by means other than its own power, except that no payment will be made if the equipment is used at the site of the extra work on other than such extra work.
The following shall be used in computing the rental time of equipment on the work:
(1) When hourly rates are listed, less than 30 minutes of operation shall be considered to be 2 hour of operation.
(2) When daily rates are listed, less than 4 hours of operation shall be considered to be 2 day of operation.
(3b) Equipment Not on the Work. For the use of equipment moved in on the Work and used exclusively for extra work paid for on a force account basis, the Contractor will be paid the rental rates listed in the Department of Transportation publication entitled Labor Surcharge And Equipment Rental Rates, which is in effect on the date upon which the work is accomplished and which is a part of the contract, or determined as provided in Section 9.03A(3) and for the cost of transporting the equipment to the location of the work and its return to its original location, all in accordance with the following provisions:
(1) The original location of the equipment to be hauled to the location of the work will be agreed to by the Engineer in advance. (2) The City will pay the costs of loading and unloading such equipment.
(3) The cost of transporting equipment in low bed trailers shall not exceed the hourly rates charged by established haulers. (4) The cost of transporting equipment shall not exceed the applicable minimum established rates of the Public Utilities Commission. (5) The rental period shall begin at the time the equipment is unloaded at the site of the extra work or the extra work is available to be accomplished whichever occurs later, shall include each day that the equipment is at the site of the extra work, excluding Saturdays, Sundays, and legal holidays unless the equipment is used to perform the extra work on such days, and shall terminate at the end of the day on which the Engineer directs the Contractor to discontinue the use of such equipment or its further use is unnecessary. The rental time to be paid per day will be in accordance with the following:
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Hours Equipment
is in Operation
0 0.5
1 1.5
2 2.5
3 3.5
4 4.5
5 5.5
6 6.5
7 7.5
8 Over 8
Hours to
be Paid
4 4.25
4.5 4.75
5 5.25
5.5 5.75
6 6.25
6.5 6.75
7 7.25
7.5 T75
8 hours in operation
The hours to be paid for equipment which is operated less than eight (8) hours due to breakdown shall not exceed eight (8) less than the number of hours the equipment is inoperative due to breakdowns.
When hourly rates are listed, less than thirty (30) minutes of operation shall be considered to be one-half (2) hour of operation.
When daily rates are listed, payment for one-half (2) day will be made if the equipment is not used. If the equipment is used, payment will be made for one (1) day.
The minimum rental time to be paid for the entire rental period on an hourly basis shall not be less than eight (8) hours or if on a daily basis, shall not be less than one (1) day.
(6) Should the Contractor desire the return of the equipment to a location other than its original location, the City will pay the cost of transportation in accordance with the above provisions; provided such payment shall not exceed the cost of moving the equipment to the work.
(7) Payment for transporting, and loading and unloading equipment, as above provided, will not be made if the equipment is used on the work in any other way than upon extra work paid for on a force account basis. (3c) Owner -Operated Equipment. When owner -operated
equipment is used to perform extra work to be paid for on a force account basis, the Contractor will be paid for the equipment and operator, as follows:
Payment for the equipment will be made in accordance with the provisions in Section 9.03A(3), "Equipment Rental."
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Payment for the cost of labor and subsistence or travel allowance will be made at the rates paid by the Contractor to other workmen operating similar equipment already on the project, or, in the absence of such other workmen, at the rates for such labor established by collective bargaining agreements for the type of workman and location of the work, whether or not the owner -operator is actually covered by such an agreement. A labor surcharge will be added to the cost of labor described herein, in accordance with the provisions in Section 9.03A(1 b), "Labor Surcharge." To the direct cost of equipment rental and labor, computed as provided herein, will be added the markups for equipment rental and labor as provided in Section
9.03A, "Work Performed by Contractor."
(3d) Dump Truck Rental. Dump truck rental shall conform to the provisions of Section 9.03A(3), "Equipment rental," 9.03A(3a), "Equipment on the Work," and
9.03A(3b), "Equipment not on the Work," except as follows:
Fully maintained and operated rental dump trucks used in the performance of extra work paid for on a force account basis will be paid for at the same hourly rate paid by the Contractor for use of fully maintained and operated rental dump trucks in performing contract item work.
In the absence of contract item work requiring dump truck rental, the Engineer will establish an hourly rental rate to be paid. The Contractor shall provide the Engineer with complete information on the hourly rental rates available for rental of fully maintained and operated dump trucks.
The provisions in Section 9.03A(1), "Labor," shall not apply to operators of rented dump trucks.
The rental rates listed for dump trucks in the Department of Transportation publication entitled Labor Surcharge And Equipment Rental Rates shall not apply.
To the total of the rental costs for fully maintained and operated dump trucks, including labor, there will be added a markup of 15 percent. No separate markup will be made for labor.
The provisions of Section 9.03A(3c), "Owner -Operated Equipment," shall not apply to dump truck rentals.
B. Work Performed by Special Forces or Other Special Services. When the Engineer and the Contractor, by agreement, determine that a special service or an item of extra work cannot be performed by the forces of the Contractor or those of any of its subcontractors, such service or extra work item may be performed by a specialist. Invoices for such service or item of extra work on the basis of the current market price thereof may be accepted without complete itemization of labor, materials and equipment rental costs when it is impracticable and not in accordance with the established practice of the special service industry to provide such complete itemization.
In those instances wherein a contractor is required to perform extra work necessitating a fabrication or machining process in a fabrication or machine shop facility away from the job site, the charges for that portion of the extra work performed in such facility may, by agreement, be accepted as a specialist billing.
To the specialist invoice price, less a credit to the City for any cash or trade discount offered or available, whether or not such discount may have been taken, will be added 15 percent in lieu of the percentages provided in Section 9.03A, "Work Performed by Contractor." GC -63
G9.04 FORCE ACCOUNT RECORDS. The Contractor shall maintain its records in such a manner as to provide a clear distinction between the direct costs of extra work paid for on a force account basis and the costs of other operations. The records and extra work reports shall be maintained and prepared for specific scopes of work provided by the Engineer. The Engineer may establish a Not to Exceed cost for a specific scope of work. In such cases the Contractor shall maintain records so as to ensure that the Not to Exceed cost is not exceeded but that the Engineer is advised in writing ahead of time if it is anticipated that the cost will be exceeded so that the Engineer may consider action to increase the Not to Exceed cost or modify the scope of work. The City shall not pay for any costs above the Not to Exceed cost if the Contractor has not provided such notice in writing at least seven (7) calendar days in advance of the date the Contractor anticipates reaching the Not to Exceed cost.
From the above records, the Contractor shall furnish the Engineer completed daily extra work reports, on forms furnished by the City or on computerized facsimiles of the City's forms acceptable to the Engineer, for each day's extra work to be paid for on a force account basis. The daily reports shall itemize the materials used whether invoices are or are not available that day and shall cover the direct cost of labor and the charges for equipment rental, whether furnished by the Contractor, subcontractor, or other forces, except for charges described in Section G9.03.B, "Work Performed by Special Forces or Other Special Services." The daily extra work reports shall provide names or identifications and classifications of workers, the hourly rate of pay and hours worked, and also the size, type and identification number of equipment, and hours operated. With each daily extra work report submitted to the Engineer, the Contractor shall compile the total cost of the extra work accomplished to date for a specific scope of work and compare it to the Not to Exceed cost if one has been established by the Engineer.
Material charges shall be substantiated by valid copies of vendor's invoices. Such invoices shall be submitted with the daily extra work reports, or if not available, they shall be submitted with subsequent daily extra work reports clearly and distinctly noting the previous daily report(s) to which they pertain.
Should vendor's invoices not be submitted within sixty (60) days after the date of use of the materials or within fifteen (15) days after the acceptance of the Contract, whichever occurs first, the City reserves the right to establish the cost of such materials at the lowest current wholesale prices at which said materials are available in the quantities concerned delivered to the location of the work, less any discounts provided in Section G9.03.A.
The daily extra work reports shall be signed by the Contractor or its authorized representative. The daily reports shall be turned in to the Engineer no later than by the close of business on the working day following the day of the report. Failure to turn in reports on this schedule shall be the basis for denying payment and/or using the Engineer's records only as the final and indisputable basis for payment. Reports must be complete as noted above.
The Engineer will compare its records with the completed daily extra work reports furnished by the Contractor and make any necessary adjustments.
When these daily extra work reports are agreed upon and signed by both parties, except for delinquent reports as noted above, said reports shall become the basis of payment for the work performed, but shall not preclude subsequent adjustment based on the later audit by the City.
The Contractor's cost records pertaining to work paid for on a force account basis shall be open to inspection or audit by representatives of the City, during the life of the contract and for a period of not less than 3 years after the date of acceptance thereof, and the Contractor shall retain such records for that period. Where payment for materials or labor is based on the cost thereof to forces other than the Contractor, the Contractor shall make every reasonable effort to insure that the cost records of such other forces will be open to inspection and audit by representatives of the City on the same terms and conditions as the cost records of the Contractor. If an audit is to be commenced more than GC -64
sixty (60) days after the acceptance date of the contract, the Contractor will be given a reasonable notice of the time when such audit is to begin.
Payment as provided in Sections 9.03A, "Work Performed by Contractor," and 9.03B, "Work Performed by Special Forces or Other Special Services," shall constitute full compensation to the Contractor for performance of work paid for on a force account basis and no additional compensation will be allowed therefor. Such payment will be made in accordance with the provisions for "Partial Payments."
G9.05 NOTICE OF POTENTIAL CLAIM. The Contractor shall not be entitled to the payment of any additional compensation for any cause, including any act, or failure to act, by the Engineer (including the failure or refusal to issue a Change Order), or the happening of any event, thing or occurrence, unless he shall have given the Engineer due written notice of potential claim as hereinafter specified, provided, however, that compliance with this Section shall not be a prerequisite as to matters within the scope of the Contract Change Order protest provisions in Section G4.09, "Protest Procedure," or the notice provisions in Section G8.11, "Delays and Extension of Time," nor to any claim which is based on differences in measurement or errors of computation as to correct quantities.
The written notice of potential claim shall set forth the reasons for which the Contractor believes additional compensation will or may be due, all relevant facts associated with the claim, the nature of the costs involved and, insofar as possible, the amount of the potential claim. If based on an act or failure to act by the Engineer or the City, such notice shall be given to the Engineer prior to the time that the Contractor has started performance of the work giving rise to the potential claim for additional compensation. In all other cases, notice shall be given within ten (10) days after the happening of the event or occurrence giving rise to the potential claim. Should a claim not be adequate or complete in content as set out above, the Engineer will reject and return the claim for Contractor's reconsideration and resubmission if so decided by Contractor. Any resubmission shall be made within seven (7) days of return by the Engineer to be considered timely unless a longer time frame is allowed by the Engineer.
It is the intention of this Section that differences between the parties arising under and by virtue of the Contract shall be brought to the attention of the Engineer at the earliest possible time in order that such matters may be settled if possible, or other appropriate action promptly taken. The Contractor hereby agrees that he shall have no right to additional compensation for any claim that may be based on any such act, failure to act, event, thing or occurrence for which a written notice of potential claim as herein required was not timely filed or not complete as to required content noted above.
G9.06 RECORDS. Pursuant to Government Code Section 8546.7, Contractor shall retain all project -related records for a period of three (3) years after final payment on this contract, which shall be subject to audit or inspection by the City or the State Auditor during this period.
Separate and apart from the obligations under Section 8546.7, the City shall have the right to audit project records at City's discretion under the following circumstances: (a) submission of a Public Records Act request regarding the project; (b) inability to resolve a disputed contract change order; or (c) submission of a construction claim.
G9.07 DISPUTE RESOLUTION. To accomplish the intent of early resolution of differences between the parties, the following procedures shall be followed for any Notice of Potential Claim submitted in full compliance with Section 9.05.
The Engineer will review and analyze each claim within the timeframe established by the Engineer based on the nature and complexity of the claim and advise the Contractor of its findings and determinations. The Contractor shall provide supplemental information as may be reasonably requested by the Engineer in the course of its review/analysis, and be available for discussions with GC -65
the Engineer on the matter. Failure of the Contractor to provide such information on a timely basis or be available for discussions shall be sufficient cause to deny the claim.
Within ten (10) calendar days of receipt of the Engineer's written findings and determinations the Contractor shall either indicate in writing agreement and acceptance or shall advise the Engineer in writing of any disagreement setting forth clearly and completely the basis for such disagreement and stating what the Contractor's position is on the issue(s) in disagreement. Failure to submit any response within the ten (10) calendar days shall be conclusively construed as Contractor acceptance of the Engineer's determinations and no further claim shall be allowed.
Upon receipt of Contractor's notice of acceptance or a non response within ten (10) calendar days the Engineer will take appropriate action to document resolution of the claim and make any needed adjustments to the contract. Should the Contractor express any disagreement he shall document it in writing to the Engineer and provide any additional documentation supporting its claim. The Engineer will conduct a review and analysis of the Contractor's documentation in the same fashion and under the same conditions as set forth for the original claim and render its final determinations and decision.
The Engineer then will take appropriate actions to adjust the Contract as may be required by its final determinations and decision.
The procedures set forth above are not intended to abrogate or replace the Public Contract Code requirements referred to in General Condition G9.11. If after participating in the dispute resolution procedures set forth above, the Contractor intends to proceed with submission of a claim, then the Contractor must formally resubmit the claim following the procedures in General Condition G9.11 and identifying that the claim is resubmitted pursuant to General Condition G9.11.
G9.08 STOP PAYMENT NOTICES. The City may, at its option and at any time, retain out of any amounts due the Contractor sums sufficient to cover claims filed pursuant to Section 9000, et seq., of the California Civil Code.
G9.09 PAYMENT SCHEDULES. The Contractor shall submit a Schedule of Anticipated Contract Payments and a Schedule of Pay Items for review and approval by the Engineer prior to the initial partial payment to the Contractor. The Schedule of Pay Items shall be prepared by the Contractor in a format approved by the Engineer and shall include such detail as directed by the Engineer. These schedules shall be sufficiently clear and detailed so as to facilitate an accurate and realistic appraisal of monthly progress for the purpose of making partial payments. The value for each bid item shall total the bid amount. The cost breakdown shall include only actual work items.
No amounts will be allowed for mobilization and other overhead costs such as bonds and insurance unless specifically provided for in the Special Provisions or bid schedule. Unless otherwise provided, costs of these items shall be spread uniformly over the actual items of work. The values in the schedule will be used only for determining partial payments.
The Schedule of Anticipated Contract Payments shall be coordinated with the Contractor's construction schedule submitted pursuant to Section G8.05 and shall show the anticipated monthly Contract payments for each of the pay items covered in the Schedule for Pay Items, the total of monthly payments and cumulative total of payments for each month. If the construction schedule is revised, the Schedule of Anticipated Contract Payments shall also be revised and resubmitted for the Engineer's review and approval as circumstances indicate to ensure that the schedule coincides with actual progress. No partial payment will be made until the Engineer has approved the Schedules required by this Section.
G9.10 PROGRESS ESTIMATES AND INVOICES FOR WORK COMPLETED. Once each month, at a time, place and location mutually agreeable, the Contractor and Engineer shall meet to discuss the amount of work completed satisfactorily during the work period since the last invoice for partial payment was prepared. The first such estimate will be of the value of the work done after the Contractor commenced the performance of the contract, and every subsequent estimate, except the GC -66
final estimate, will be of the value of the work done after that included in the last preceding estimate.
Such estimates need not be based on strict measurements, but may be approximate only, and will be in due proportion to the whole amount of money, including payments previously made, that will have become due according to the contract when all work required under the contract shall have been completed. A draft invoice for work completed shall be prepared by the Contractor or Engineer as determined by the Engineer; the Engineer's judgment will be final if disputes occur regarding the amount of work completed or its value. Following the meeting, the Contractor shall formally submit the invoice for work completed in a form acceptable to the Engineer. The invoice will certify, and be supported by evidence if required by the Engineer, that the work invoiced has been done and that the materials listed have been incorporated into the work. The invoice may include the amount and value of such acceptable material as has been furnished and incorporated into the work. No payment or allowance shall be made for equipment or materials stored within the general work area or elsewhere but not yet satisfactorily incorporated in the work except as may be provided in the Special Provisions.
G9.11 RETENTION. In addition to amounts, if any, withheld pursuant to any other provision of these General Conditions, including the City's right to withhold for the estimated or actual costs of correcting defective work and amounts claimed by the City as liquidated damages or other offsets, the City will retain an amount equal to 5 percent of the estimated value of the work done as part security for the fulfillment of the Contract by the Contractor. Any time after 50 percent of the work has been completed, if the Engineer finds that satisfactory progress is being made, the City may (but need not) reduce the amount being retained from progress payments to any amount less than 5 percent of the value of the estimated value of said work and materials.
In addition, when the Engineer determines that the contract is 95 percent complete, the City may release a portion of total retention amount withheld, and continue to retain such lesser amount as the City determines is adequate security for the fulfillment of the balance of the work and other requirements of the contract, but in no event will said amount be reduced to less than 125 percent of the estimated value of the work yet to be completed as determined by the Engineer. In agreeing to any of the above referenced revised method(s) of progress payments, the City reserves the right to return to the original method of progress payments in the amount of 90 percent of work completed, if at any time, the Engineer finds that either the Contractor is not making satisfactory progress or there is a specific cause for greater withholding.
G9.12 PARTIAL PAYMENTS. Upon receipt of a progress payment invoice the Engineer/City will review it as soon as practicable for the purpose of determining whether or not it is proper in both form and content. If a progress payment invoice is determined not to be proper, such as not including schedule information or failure to submit a proper and adequate schedule as set forth in Section G8.05, it shall be returned to the Contractor as soon as practicable but in any event within seven (7) days after receipt together with a written statement why it is not proper. The City will make progress payments within thirty (30) days after receipt of an undisputed and properly submitted progress payment invoice. Attention is directed to Section 20104.50 of the Public Contract Code. No such payment will be made when, in the judgment of the Engineer, (a) the work is not proceeding in accordance with the provisions of the Contract; (b) the Contractor is not complying with the requirements of the Contract; or (c) when the total value of the work done as shown on the invoice does not exceed Three Hundred Dollars ($300.00).
No such invoice or payment will be construed to be an acceptance of any work or materials. Before any progress payment or the final payment is made, the Contractor may be required to submit satisfactory evidence that he is not delinquent in payments to its employees, subcontractors, suppliers or other creditors for labor and materials incorporated into the Work.
Pursuant to Public Contract Code Section 20104.50, if the City fails to make a progress payment in a timely manner, it shall pay interest to the Contractor at the legal rate set forth in Section 685.010(a) of the California Code of Civil Procedure.
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G9.13 PAYMENT OF WITHHELD FUNDS. Pursuant to Public Contract Code Section 22300, the Contractor may request to deposit securities in escrow equivalent to the amount of funds withheld from progress payments by the City as described in Section G9.11, with the City or a bank acceptable to the City as a substitution for funds withheld by the City. Alternatively, the Contractor may request to have the City make payment of the funds withheld from progress payments as described in Section G9.11 directly to an escrow agent and direct the investment of such funds into securities. The Contractor shall be the beneficial owner of any securities and shall receive interest thereon. Upon the satisfactory completion of the contract, the Contractor shall receive all securities, interest and payments. The Contractor may make this request only upon the following conditions. a. the request to substitute securities or to have payments made directly to an escrow agent shall be at the sole expense of the Contractor; b. securities eligible for investment shall include securities pursuant to California Government Code section 16430, bank or savings and loan certificates of deposit, interest bearing demand deposit accounts, standby letter of credit, or any other security mutually agreed upon by the City and Contractor; c. the Contractor shall enter into an escrow agreement, which shall be substantially similar to the agreement form provided in Public Contract Code Section 22300;
d. the Contractor shall obtain the written consent of the surety to such agreement; and
e. the Contractor who elects or receive interest on funds withheld by the City shall, at the request of any subcontractor performing more than five percent (5%) of the Contractor's total bid, make the option available to the subcontractor to receive interest on any funds withheld in retention by the Contractor from the subcontractor. The subcontractor shall receive interest in accordance with Public Contract Code section 22300(d)(1). Alternatively, the Contractor who elects to substitute securities in lieu of retention by the City, shall by mutual consent between the Contractor and subcontractor allow any subcontractor performing more than five percent (5%) of the Contractor's total bid to substitute securities in lieu of funds withheld by the Contractor.
G9.14 PROMPT PAYMENT TO CONTRACTOR. The City will make progress payments within thirty (30) days after receipt of an undisputed and properly submitted progress payment invoice pursuant to Section 20104.50 of the Public Contract Code. No such payment will be made when, in the judgment of the Engineer, (a) the work is not proceeding in accordance with the provisions of the Contract; (b) the Contractor is not complying with the requirements of the Contract; or (c) when the total value of the work done as shown on the invoice does not exceed Three Hundred Dollars ($300.00). No such invoice or payment will be construed to be an acceptance of any work or materials. Before any progress payment or the final payment is made, the Contractor may be required to submit satisfactory evidence that he is not delinquent in payments to its employees, subcontractors, suppliers or other creditors for labor and materials incorporated into the work.
Pursuant to Public Contract Code Section 20104.50, if the City fails to make a progress payment in a timely manner, it shall pay interest to the Contractor at the legal rate set forth in Section 685.010(a) of the California Code of Civil Procedure.
G9.15 FINAL PAYMENT. After the work has been accepted by the City, as provided in Section G7.26, "Acceptance of the Work," payment will be made to the Contractor in accordance with the provisions of this Section. Upon acceptance, the City will record a Notice of Completion covering the project.
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Within thirty-five (35) days after acceptance by the City, the Contractor shall prepare and submit a proposed final invoice in writing, prepared in a form acceptable to the Engineer. The proposed final invoice will show the proposed total amount of compensation payable to the Contractor, including an itemization of that amount segregated as to Contract item quantities, extra work and other bases for payment. The proposed final invoice will also show all deductions made or to be made for prior payments and amounts to be kept or retained under the Contract.
The Contractor shall also submit, at the same time as the proposed final invoice is submitted, a statement of all claims he has arising under or by virtue of the Contract, or a statement that he does not intend to file any such claims. All claims shall be submitted as specified herein. No claim for which a notice of potential claim or protest is required under Section G9.05, "Notice of Potential Claim," Section G4.09, "Protest Procedure," or Section G8.11, "Delays and Extension of Time," will be considered unless the Contractor has fully complied with the notice or protest requirements in said sections and the resolution process set out to Section G9.07.
Claims filed by the Contractor shall be in sufficient detail to enable the Engineer to ascertain the basis and amount of said claims.
The Engineer will review the proposed final invoice and claims and will submit its recommendation to the City as to the final estimate of the amount due the Contractor and the disposition of all claims. All prior invoices and payments are subject to correction in connection with review of the proposed final invoice.
The City will submit any changes or corrections to the proposed final invoice to the Contractor for its consideration. Within ten (10) days thereafter, the Contractor shall submit a final invoice, in a form acceptable to the Engineer, incorporating any changes or corrections made by the City, together with any additional claims resulting therefrom. Upon approval by the City, this will become the approved final invoice. The Contractor shall submit with the final invoice, certificates of any insurance required to be maintained after acceptance of the work.
If the Contractor files no claims within thirty (30) days after acceptance of the work by the City, and agreement is reached on all questions regarding the final invoice, the City will pay the entire sum found due upon the final invoice, except that the City will withhold sums sufficient to pay all unsettled claims for which stop payment notices have been filed pursuant to Section 9000, et seq., of the California Civil Code, together with the costs of administering such claims.
If the Contractor does file claims within thirty (30) days after acceptance of the work by the City, then upon final determination of all the Contractor's claims, the City will pay the entire sum found due upon the final invoice, including the amount, if any, allowed on claims, except that the City will withhold sums sufficient to pay all unsettled claims and any amounts for which stop payment notices have been filed pursuant to Section 9000, et seq., of the California Civil Code, together with the costs of administering such claims.
Before final payment can be made, the Contractor shall furnish the Engineer with the following:
(a) All drawings, catalogues, instruction sheets and information as required by the Contract;
(b) One signed copy of the Release as discussed below in this Section and on a form furnished by the City; and
(c) Guarantee Bond, if not already incorporated in the Performance Bond.
Final payment will be made within thirty (30) days after receipt of an approved final invoice and other required submittals referenced above and determination of all Contractor's claims, or sixty (60) days GC -69
after acceptance of the work by the City, whichever is later, provided, however, that if a final invoice has not been submitted and approved within sixty (60) days after acceptance of the work by the City, the City may elect to make payment of sums not in dispute without prejudice to the right of either the City or the Contractor in connection with any disputed sums.
The acceptance by the Contractor of final payment shall constitute a waiver and release of all claims by the Contractor against the City related to the work, except for claims previously made in writing and identified as unsettled by the Contractor at the time of submission of the final invoice. The making of final payment, however, shall not operate to release the Contractor or its sureties from obligations arising under this Contract, the Contract bonds and warranties as herein provided. Specifically, the making of final payment shall not constitute a waiver and release of claims by the City arising from (a) unsettled or future liens, (b) failure of the work to comply with the requirements of the Contract Documents, (c) the terms of any warranties required by or contained in the Contract Documents, (d) the right to any insurance proceeds or the right to make any insurance or bond claims, (e) any claims with respect to Contractor's obligation of indemnity provided for in the Contract Documents, or (f) any latent defects or fraud.
END OF GENERAL CONDITIONS
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EXHIBIT 9
Special Provisions
and/or
Technical Specifications
DIVISION I - SPECIAL PROVISIONS
01010 PROJECT DESCRIPTION
This project is subject to a Community Workforce Agreement/Project Labor Agreement. A copy of this agreement titled "Community Workforce Agreement for the City of Hollister" is available at the following website https://www.bidnetdirect.com/california/cityofhollister .
This project will repair multiple segments of roadway in the City of Hollister through cold planing and a hot mix asphalt overlay along with isolated areas of base failure repair. In addition, curb ramps within the limits of the project will be reconstructed to meet current ADA standards, along with damaged areas of sidewalk and curb & gutter.
The roadway segments part of this contract are listed below. • Locust Avenue (4th Street to Central Avenue)
• Sally Street (North of 4th Street)_bid alternative
• B Street (Homestead Avenue to Powell Street)
• Squire Court (Prune Street to Knight Lane)
01011 SUMMARY OF WORK
Pavement rehabilitation treatments and general improvements to be implemented and installed include base failure repair, cold plane and HMA overlay, new pavement section along Sally St project limits, striping, concrete curb, curb ramps, and sidewalk improvements.
01012 EQUIPMENT TO BE PROVIDED TO OWNER
(Not Used)
01013 WORK BY OTHERS
Others working on associated facilities and probably interfacing with the Contractor at some time during the execution of the work include:
1. City of Hollister Public Works Department Streets Division
2. City of Hollister Public Works Department Utilities Division The Contractor shall cooperate to complete the necessary Work at a minimum cost and time delay for all involved. In the event of lack of agreement, the City will determine how and where the interface shall be made and their decision shall be final. 01014 DEFINITIONS
City:
Owner:
City of Hollister
City of Hollister
Engineer or
Design Consultant: Kimley-Horn and Associates, Inc.
Contractor: The individual, partnership, corporation, joint venture, or other legal entity having a contract with the City to perform the work.
SP1
Construction Manager: City of Hollister
01015 WORK INVOLVING EXISTING SYSTEM
Operation of the existing water system shall not be jeopardized or materially reduced in efficiency as a result of the execution of Work. The Contractor will have to maintain existing services during construction at all times.
The Contractor must not plan work schedules until a written schedule has been approved, and work is fully coordinated with the City's operations.
01016 COORDINATION OF WORK
The Contractor shall maintain overall coordination for the execution of the Work pertaining to this project. Based on the Construction Schedule prepared in accordance with these Specifications, the Contractor shall obtain from each of his subcontractors a similar schedule which shall be integrated into the construction schedule. The Contractor shall then be responsible for all parties maintaining these schedules for coordinating required modifications. 01017 WORK SEQUENCE, CONSTRAINTS, WORKING DAYS, AND LIQUIDATED DAMAGES A. Within ten (10) working days upon receiving the completed (signed) Contract, the Contractor shall initiate the submittal and review process for all materials and equipment to be used on the project.
B. The City will issue the Notice to Proceed no later than twenty-eight (28) calendar days from the award of contract. The counting of working days will commence with the Notice to Proceed.
B. Within ten (10) working days, or at the pre -construction conference, whichever occurs first, the Contractor shall prepare a Work Plan for review and approval by the City and Engineer. The Work Plan shall describe all elements of the Work in sufficient detail to allow City and Engineer to evaluate the progression of planned activities at the Site.
C. Within sixty (60) working days after the Notice -to -Proceed has been issued, the project shall be completed. Liquidated damages accrue starting on the 1St day after the expiration of working days. Liquidated damages will be assessed using the Liquidated Damages table in Section 8-1.10A of the Caltrans Standard Specifications.
D. The Contractor shall be aware that there may be change orders involved with this Work. The Engineer has made every attempt possible to determine the extent and location of all existing facilities within the project area. However, the inexact nature of existing knowledge and unavailable as -built plans may require the issuing of change orders to reflect changed conditions.
01020 CONSTRUCTION STAKES, LINES AND GRADES
The Work shall be executed in accordance with the lines and grades indicated in the Contract Documents. Distances and measurements, except elevations and structural dimensions, shall be made on horizontal planes. Contractor shall verify elevations and locations of structures a minimum of 72 hours prior to construction. Contractor shall notify the engineer of record if any field conditions are different than what is noted on the Contract Documents.
The City will not provide construction staking. The Contractor shall layout the striping based on the SP2
lines and dimensions provided in the plans.
01021 SITE WORK
Principal control points, including establishment of temporary bench mark, will be identified by the Contractor and shall be protected from disturbance. If the points are disturbed, any work that is governed by these monuments shall be held in abeyance until the points are re-established by the Contractor. The accuracy of all the Contractor's stakes, alignments, and grades is the responsibility of the Contractor. However, the City has the discretionary right to check the Contractor's stakes, alignments and grades at any time. Where such discretion is to be exercised by the City, he will notify the Contractor of his intention, stating the time at which the checking will commence. Any part of the work in progress, the results of which are predicated directly upon the Contractor's stakes, alignments, or grades to be checked, shall be held in abeyance until the City has notified the Contractor that the checking has been completed. The Contractor shall establish such control and reference points for line and grade as he may need and as will be required to properly lay out the Work.
01022 PARTIAL ACCEPTANCE OF WORK
After completion of certain portions of the Work, including all testing and other preparation necessary for operation of such portions by the City as herein specified, but prior to final completion of the Work, provisions may be made for partial acceptance in writing by the City for such portions only. The portions of the Work to be included for partial acceptance prior to final project completion will be noted at the preconstruction conference in accordance with Contractor's schedule, or by written notice to the Contractor at the earliest possible time.
The guarantee period for such portions of the Work shall commence with the date of their acceptance for use by the City. However, full payment for such portions will not be made until final acceptance of the total Work.
Acceptance of any portion of the Work prior to acceptance of the whole shall not be construed as absolving the Contractor of responsibility for any item of construction or incidental work included in the Contract. Prior to such occupancy or use, the City will enter into a written agreement with the Contractor delineating the portions of the Work released to the City for occupancy or use and indicating what if any, work remains to be done within the occupied or released area. If such prior use increases the cost of or delays the Work, the Contractor shall be entitled to such extra compensation, or extension of time, or both, as may be determined by the City after consideration of recommendations by the City.
Should any portion of the Work in use be damaged thereby, the City shall bear the expense for repairing such damage. However, if the portion being so used should reveal deficiencies of materials or workmanship, it shall be the Contractor's responsibility to replace the defective construction. 01023 PARTIAL AND FINAL PAYMENT
Attention is directed to Subsection 9-3.2 PARTIAL AND FINAL PAYMENT of the standard specifications. Modify paragraph three to read:
From each progress payment, 5% will be deducted and retained by the agency. The City will withhold 5% of the total Contract amount until acceptance of the performance of the Contract by the City Council.
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01210 PRECONSTRUCTION CONFERENCE
Upon receipt of the completed (signed) Contract, the Contractor will arrange a meeting to be attended by the Contractor, City, Engineer, or their respective representatives, and others involved in the execution of the work.
The purpose of this conference shall be to establish a working understanding between the parties and to discuss the Construction Schedule, shop drawing submittals and processing, applications for payments and their processing, and such other subjects as may be pertinent for the execution of the Work.
01220 PROGRESS MEETINGS
The Contractor shall arrange and conduct progress meetings. These meetings shall be conducted at least once every week and shall be attended by the Contractor's superintendent and representatives of all subcontractors, utilities, and others that are active in the execution of the Work. The purpose of these meetings shall be to expedite the work of any subcontractor or other organization that is not up to schedule, resolve conflicts, and in general coordinate and expedite the execution of the Work.
The agenda of progress meetings, provided by the Construction Manager, shall include review of progress and schedule, review payment request at monthly intervals, review of narrative report by the Contractor, review of the latest Construction Schedule update, and review of the record documents if necessary.
01221 SCHEDULE REVIEW
The Work and the Construction Schedule as identified in Section 6 of the standard specifications shall be reviewed to verify:
A. Start and finish dates of activities falling within Contract time.
B. Durations and progress of all activities are reasonable.
C. A two week minimum, 4 week maximum look ahead schedule shall be submitted and updated on a weekly basis by the contractor.
01222 REVISIONS TO CONSTRUCTION SCHEDULE
The Contractor shall submit a revised Construction Schedule within five days of the occurrence of any of the following:
A. When delay in completion of any activity or group of activities indicates an overrun of the Contract time or control point requirement, by 5 working days or ten percent (10 percent) of the remaining duration, whichever is less.
B. Delays in submittals, deliveries or work stoppages are encountered which make replanning or rescheduling of the work necessary.
C. The Schedule does not represent the actual prosecution and progress of the project as being performed in the field.
Acceptance of the revised Construction Schedule and all supporting data is contingent upon SP4
compliance with other related requirements specified before in this DIVISION I and any other previous agreements or requirements with or by the City. 01300 SUBMITTALS - SHOP DRAWINGS
In ample time for each to serve its purpose and function, the Contractor shall submit to the City for approval all schedules, reports, drawings, lists, literature samples, instructions, directions, guarantees, shop drawings, layout diagrams, catalog data, and test reports for all materials and equipment to be used for completion of the work. All information to be provided in sufficient detail to show complete compliance with all specified requirements of the Contract Documents covering, but not limited to, 01310 Materials and Equipment List.
The Contractor, at his own expense, shall make such changes in the required drawings as may be necessary to conform to the Contract Documents. After completion of such checking, verification, and revising, the Contractor shall stamp and sign the drawings indicating his approval and submit the shop drawings and pertinent data to the City for review. Prior to the City's review of such drawings, any work which the contractor may do on the fabrications covered by the same shall be at his own risk as the City will not be responsible for any expense or delays incurred by the Contractor for changes to make the same conform to the Contract Documents.
Shop drawings and data shall be submitted to the City in such number of copies as will allow him to retain two (2) copies of each submittal; alternatively, Contractor may submit electronic PDF copies of such submittals in lieu of hard copies. The submittal shall clearly indicate the specific area of the Contract Documents for which the submittal is made. The additional copies received by him will be returned to the Contractor's representative at the job site. The City's notations of the action that he has taken will be noted on the returned copies.
The above drawings, lists, prints, samples, and other data shall become a part of the Contract Documents, and a copy of the same shall be kept with the job site Contract Documents, and the fabrications furnished shall be in conformance with the same. However, the City's review of the above drawings, lists, prints, specifications, samples or other data shall in no way release the Contractor from his responsibility for the proper fulfillment of the requirements of this Contract nor for fulfilling the purpose of the installation nor from his liability to replace the same, should it prove defective or fail to meet the specified requirements.
01310 MATERIALS AND EQUIPMENT LIST
Submittal Name
Work Plan
Work Schedule
Traffic Control Plan
Water Pollution Control Plan
Class II Aggregate Base
Concrete
Hot Mix Asphalt Concrete
Crack Sealant
Signing and Striping
01320 QUALITY CONTROL
Specification Section
01017
02110
02200
02400
City of Hollister Std Specs Section 200
City of Hollister Std Specs Section 303
City of Hollister Std Specs Section 203
03000
Improvement Plans & Caltrans Stds
All materials and equipment shall be new and of the specified quality and equal to the samples found to be acceptable by the City, if samples have been submitted. The Work shall be done and completed in a thorough, workmanlike manner, notwithstanding any omission in the Contract Documents; and it shall be the duty of the Contractor to call the City's attention, apparent errors or omissions and SP5
request instructions before proceeding with the Work. The City may, by appropriate instructions, correct errors and supply omissions, which instructions shall be as binding upon the Contractor as though contained in the original Contract Documents.
01321 SAMPLING
The Contractor shall furnish such samples of materials as are requested by the City, without charge.
No material shall be used until the City has had the opportunity to test or examine such materials.
Samples will be secured and tested whenever necessary to determine the quality of the material.
Samples and test specimens prepared at the job site, such as concrete test cylinders, shall be taken or prepared by the City in the presence and with the assistance of the Contractor. 01322 INSPECTION
Materials, equipment, and workmanship shall be subject to the inspection of, and rejection by, the City or City's designated Inspector, if not in conformance with the Contract Documents. Defective materials, equipment, or Work shall be removed from the premises by the Contractor, whether in place or not, and shall be replaced with new and acceptable materials, equipment, or work. Repair of defective materials, equipment, or work shall be subject to the City's acceptance.
On all questions concerning the acceptability of materials or equipment, classification of materials, or equipment, execution of the Work, and the determination of costs, the decision of the City shall be final and binding upon all parties.
The Contractor shall at all times maintain proper facilities and provide safe access to all parts of the Work, to the shops wherein the Work is in preparation, and to all warehouses and storage yards wherein materials and equipment are stored, for purposes of inspection by the City. Should any Work be covered up before the City has had the opportunity to observe such work, it shall, if required by the City, be uncovered for examination at the Contractor's expense. 01400 TEMPORARY FACILITIES
The Contractor shall provide all temporary facilities and utilities required for prosecution of the work, protection of employees and the public, protection of the work from damage by fire, weather or vandalism, protection dust emissions, protection from contaminated stormwater runoff from the Work site, and such other facilities as may be specified or required by any legally applicable law, ordinance, rule, regulation, or permit.
01401 ELECTRICAL SERVICE
The Contractor shall be responsible for obtaining adequate temporary electrical service, if required.
The Contractor shall then provide adequate job site distribution facilities conforming to applicable codes and safety regulations. Contractor shall comply with work day and work hour restrictions stipulated in the City Standard Specifications and Special Provisions contained herein. 01402 TEMPORARY LIGHTING
The Contractor shall provide temporary lighting in all work areas sufficient to maintain a lighting level during working hours not less than the lighting level required by OSHA standards. 01403 HEATING AND VENTILATION (NOT USED)
The Contractor shall provide means for heating and ventilating all work areas as may be required to protect the Work from damage caused by freezing, high temperatures, and other weather conditions.
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The Contractor shall provide a safe environment for workers.
Unvented direct fired heaters shall not be used in areas where freshly placed concrete will be exposed to combustible gases until at least two hours after the concrete has attained its initial set. 01404 WATER
The City can provide construction water for a fee. Contractor shall make all arrangements for a construction water meter with the City Public Works Utilities Division and the City Administrative Services Finance Department. A reduced pressure principle backflow preventer assembly (Febco 825Y or approved equal) must be provided/installed by the Contractor with any temporary piping, hoses, etc. Construction water may not be used for human consumption. Contractor to provide potable water that shall be kept free from contamination and shall conform to the requirements of the State and local authorities for potable water.
01405 SANITARY CONVENIENCES
The Contractor shall provide a suitable and adequate chemical toilet at the site of the work. 01414 WARNING DEVICES AND BARRICADES
The Contractor shall adequately identify and guard all hazardous areas and conditions by visual warning devices and, where necessary, physical barriers. Such devices shall, as a minimum, conform to the requirements of OSHA. A Traffic Control Plan is required to be submitted for review and approval by the City.
01415 HAZARDS IN PROTECTED AREAS
Excavation on the project site from which the public is excluded shall be marked or guarded in a manner appropriate for the hazard.
01416 PROTECTION OF EXISTING ITEMS
The Contractor shall protect all existing structures, and other items on the project site that are to be preserved, by substantial barricades or other devices commensurate with the hazard, from injury or destruction by vehicles, equipment, workmen, or other agents. 01417 PROJECT SECURITY
The Contractor shall provide means necessary to protect equipment and project site against fire, theft, and vandalism, and for the protection of the public against exposure to injury. Contractor to identify a location for a yard to store equipment and material. 01418 FIRE EXTINGUISHERS
Sufficient number of fire extinguishers of the type and capacity required to protect the Work and ancillary facilities, shall be provided in readily accessible locations. 01419 DUST CONTROL
Adequate steps, procedures, or means as are required to prevent abnormal dust conditions being caused by his operations in connection with the execution of the Work. Control shall be by sprinkling, use of dust palliatives, tarps, modification of operations, or any other means acceptable SP7
to agencies having jurisdiction. Dust control is to be maintained at all times throughout the project including weekends, evenings, holidays, or those times when there is no work in progress. 01420 SPECIAL CONTROLS
The Contractor shall take all reasonable means to minimize inconvenience and injury to the public, or other agencies under his control. The Contractor shall limit his work and staging area to the minimum necessary and minimize disruption of any adjacent commercial, retail, recreational or residential facilities.
01422 ODOR CONTROL
The Contractor shall take whatever steps, procedures, or means as are required to prevent abnormal odors being caused by his operations.
01423 DRAINAGE CONTROL
In prosecuting the Work, care shall be taken to not disturb the pre-existing drainage pattern.
Particular care shall be taken to direct and contain drainage water on City property, and collect and properly dispose of such water as part of the Work. A Water Pollution Control Plan is required as part of the Work Plan to be submitted to the Engineer for review and approval. 01424 EROSION CONTROL
Erosion control measures for wind, water, material stockpiles, and tracking shall be implemented at all times by the contractor and shall include source control, including protection of stockpiles, protection of slopes, protection of all disturbed areas, protection of accesses, and perimeter containment measures. Erosion control shall be placed prior to the commencement of work based upon location, site characteristics or time of year. The intent of erosion control measures shall be to keep all generated sediments from entering a swale, drainage way, watercourse, atmosphere, or migrate onto adjacent properties or onto the public right-of-way. 01502 CONTRACTOR'S CONTINUING OBLIGATION
Contractor's obligation to perform and complete the Work in accordance with the Contract Documents shall be absolute. Neither recommendation of any progress or final payment by CITY, nor the issuance of a Notice of Completion, nor any payment by CITY TO CONTRACTOR under the Contract Documents, nor any use or occupancy of the Work or any part thereof by CITY, nor any act of acceptance by CITY nor any failure to do so, nor any review and approval of a Shop Drawing or sample submission, nor the issuance of a notice of acceptability by CITY, nor any correction of defective Work by CITY will constitute an acceptance or Work not in accordance with the Contract Documents or a release of Contractor's obligation to perform the Work in accordance with the Contract Documents.
01503 CONTACT PERSONS FOR OUTSIDE AGENCIES
The following agencies shall be contacted as specified in SECTION 5 -UTILITIES of the City of Hollister Standard Specifications.
CITY OF HOLLISTER DEPT
CONTACT PERSON PHONE/EMAIL
Utilities Division
Operations & Maintenance Division
Summer Garcia
Derrick Speights
(831) 636-4377
(831) 636-4370
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Engineering Division
AT&T
Sunnyslope Water District
Charter Communications
PG&E
01504 PROJECT CLOSEOUT
Dillon Albert
Charlene Crawford
Drew Lander
Mitchell Rodriquez
Lori Rusca
(831) 636-4340
[email protected]
(831) 637-4670
[email protected]
(831) 648-3249
It is the intent of these Contract Documents that the Contractor shall deliver a complete and operable facility capable of performing its intended functions and ready for use. 01505 CLEANING
Throughout the period of construction the Contractor shall keep the Work site free and clean of all rubbish and debris, and shall promptly remove from the site, or from property adjacent to the site of the Work, all unused and rejected materials, surplus earth, concrete, and debris, excepting select material which may be required for refilling or grading. 01506 FINAL SITE CLEAN-UP
Upon completion of the Work, and prior to final acceptance, the Contractor shall remove from the vicinity of the Work all plant, surplus material, and equipment belonging to him or used under his direction during construction.
01507 WASTE DISPOSAL
The Contractor shall dispose of surplus materials, waste products, and debris and shall make necessary arrangements for such disposal.
01510 PROJECT RECORD DOCUMENTS
The Contractor shall maintain at the site, available to the City and Engineer, one copy of the Contract Documents, Drawings, Shop Drawings, Change Orders, and other modifications in good order and marked (red line) to record all changes made during construction (as -built drawings). These documents shall be delivered to the City upon completion of the Work prior to the release of final progress payment (not retention).
During the progress meetings, such record documents shall be reviewed to ascertain that all changes have been recorded.
01520 TOUCH-UP AND REPAIR
The Contractor shall touch up or repair finished surfaces on structures, or installations that have been damaged prior to final acceptance. Surfaces on which such touch up or repair cannot be successfully accomplished shall be completely refinished or in the case of hardware and similar small items, the item shall be replaced.
01530 REUSE OF DOCUMENTS
Neither CONTRACTOR nor any Subcontractor or Supplier or other person or organization performing or furnishing any of the Work under a direct or indirect contract with CITY shall have or acquire any title to or ownership rights in any of the Drawings, Specifications or other documents (or copies of any thereof) prepared by or bearing the seal of ENGINEER; and they shall not reuse SP9
any of them on extensions of the Project or any other project without written consent of CITY and ENGINEER and specific written verification or adaptation by ENGINEER. **END OF SECTION DIVISION I**
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DIVISION 2 - TECHNICAL SPECIFICATIONS
02010 GENERAL CONDITIONS
1. All construction and materials shall be in accordance with these plans, City standard details and specifications, and all issued addenda, and commonly accepted construction standards. The City specifications shall govern where other specifications do not exist. In case of conflicting specifications or details, the more restrictive specification and detail shall be followed.
2. The contractor shall comply with City "general notes" for construction, if existing and required by the City
3. The contractor shall furnish all material and labor to construct the facility as shown and described in the construction documents in accordance with the appropriate authorities' specifications and requirements.
4. The contractor shall visit the site prior to bidding to determine existing conditions.
5. The contractor shall review and verify all dimensions and field conditions that may affect construction.
Any discrepancies on the drawings shall be immediately brought to the attention of the architect and engineer before commencing work. No field changes or deviations from design are to be made without prior approval of the engineer and if applicable the City. No consideration will be given to change orders for which the City, engineer, and owner were not contacted prior to construction of the affected item.
6. It is the contractor's responsibility to contact the various utility companies which may have buried or aerial utilities within or near the construction area before commencing work to have them locate their existing utilities prior to construction. The contractor shall provide an adequate minimum notice to all utility companies prior to beginning construction.
7. Contractor shall call 811 an adequate amount of time prior to commencing construction or any excavation.
8. Contractor shall use extreme caution as the site contains various known and unknown public utilities.
9. The contractor is responsible for coordinating any adjustments and relocations of existing utilities that conflict with the proposed improvements, including but not limited to, adjusting existing manholes to match proposed grade.
10. The contractor shall be responsible to obtain all required construction permits, approvals, and bonds prior to construction.
11. The contractor shall have available at the job site at all times a copy of the contract documents including plans, project and City specifications, and special conditions, copies of any required construction permits, and inspection reports.
12. All shop drawings and other documents that require engineer review shall be submitted by the contractor sufficiently in advance of construction of that item, so that no less than 10 business days for review and response is available.
13. All necessary inspections and/or certifications required by codes, jurisdictional agencies, and/or utility service companies shall be performed prior to use of the facility and the final connection of services.
14. Contractor shall arrange for required City inspections.
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15. Contractor's bid price shall include all inspection fees.
16. Contractor is responsible for all materials testing and certification, unless specified otherwise by owner.
A11 materials testing shall be coordinated with the appropriate City inspector and comply with City standard specifications. Testing shall be performed by an approved independent agency for testing materials.
Owner shall approve the agency nominated by the contractor for materials testing.
17. All copies of materials test results shall be sent to the City and engineer directly from the testing agency.
18. It shall be the contractor's responsibility to show, by the standard testing procedures of the materials, that the work constructed meets the project requirements and City specifications.
19. A11 contractors must confine their activities to the work area. No encroachments outside of the work area will be allowed. Any damage resulting therefrom shall be contractor's sole responsibility to repair.
20. The contractor shall protect all existing structures, utilities, manholes, poles, guy wires, valve covers, vault lids, fire hydrants, communication boxes/pedestals, and other facilities to remain and shall repair any damages at no cost to the owner.
21. The contractor shall immediately repair or replace any physical damage to private property or public improvements, including but not limited to: fences, walls, signs, pavement, curbs, utilities, sidewalks, grass, trees, landscaping, and irrigation systems, etc.... to original condition or better at no cost to the owner.
22. Site safety is solely the responsibility of the contractor.
23. Signs related to site operation or safety are not included in these plans.
24. Contractor staging area shall be agreed on by the owner and contractor prior to beginning of construction.
Contractor is responsible for all permitting requirements for the construction storage and staging operations and locations.
25. All signs, pavement markings, and other traffic control devices shall conform to the "Manual on Uniform Traffic Control Devices".
26. Top rim elevations of all existing and proposed manholes shall be coordinated with top of pavement or finished grade and shall be adjusted to be flush with the actual finished grade at the time of paving.
27. Contractor shall adjust all existing and proposed valves, fire hydrants, and other utility appurtenances to match actual finished grades at the time of paving.
28. The contractor is responsible for construction sequencing and phasing, and shall contact the appropriate City officials, including building official, engineering inspector, and fire marshal to learn of any requirements.
29. References in the specifications to the Engineer also refer to the City's Public Works Inspector, or to any other designated person representing the City.
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Additional Notes
1. All work must comply with the City of Hollister Standard Details and Specifications, the latest edition of the Standard Specifications for Public Works Construction (Greenbook), and the 2024 Caltrans Standard Specifications, as specified.
2. Traffic control must be performed in accordance with the latest revision of the CA MUTCD. Contractor must have an approved traffic control plan prior to beginning work. Prepare and submit a traffic control plan to the engineer for review and approval. Update and resubmit as needed until the plan is approved.
3. Comply with the requirements for water pollution control outlined in Section 13 of the Caltrans Standard Specifications and these special provisions.
4. Do not apply thermoplastic striping using hand cart methods. Thermoplastic traffic stripes will be measured by the linear foot regardless of the number of individual stripes comprising the detail (e.g. detail 29 placed between station 1+00 and station 2+00 will be measured as 100 linear feet even though it consists of 400 linear feet of stripe).
5. Proposed fee is considered to be full compensation for performing all work as shown on the plans and as required by the specifications. No additional payments will be made.
6. A11 construction must be to the City of Hollister standards and accepted by the Public Works inspector.
Standard plans are available at the office of the public works inspector.
7. Contractor shall meet with City of Hollister at least 48 hours prior to start of construction, 24 hours notice required on all inspections.
8. Contractor is responsible to make all arrangements for site inspections and ensure that all current standards for the City of Hollister are followed prior to the beginning any phase of construction work.
9. Construction shall be limited to between the hours of 7:00 a.m. and 6:00 p.m., Monday thru Friday and inspection requests shall be limited to normal City business hours: 8:00 a.m. to 5:00 p.m., Monday thru Friday.
**END OF SECTION 02010**
02011 SUBSURFACE CONDITIONS
1.0 GENERAL
1.01 GEOTECHNICAL INVESTIGATION
A. Any data or soil and/or subsurface conditions shown in the Plans or Specifications is based on limited information and is at best only an opinion; consequently, such data cannot be considered precise or complete and there is no guarantee as to its completeness, adequacy, contents, accuracy or precision.
B. Contractor should visit the site and review all existing site conditions before submitting a bid and the submission of a bid will be prima facie evidence of having done so.
C. Prior to bidding, Contractor may make his own subsurface investigations to satisfy himself with the TS3
site and subsurface conditions.
D. The Contractor shall be responsible for obtaining written approval from the responsible agency or property owner before performing any exploratory excavations.
E. Contractor is responsible for obtaining, at Contractor's expense, any additional information necessary to bid and/or perform the work.
F. Contractor agrees to make no claims against the Engineer or Owner if, in performing the work, it is found that subsurface conditions encountered do not conform to those indicated by soil borings, test excavations, and any other subsurface investigations, obtained by the Contractor. **END OF SECTION 02010**
02016 EXISTING UTILITIES
1.0 GENERAL
1.01PUBLIC AND PRIVATE UTILITIES
A. The right is reserved by owners of public utilities and franchises to enter upon any street, road, right- of-way, or easement for the purpose of maintaining their property and for making necessary repairs or adjustments caused by the Contractor's operations. The Contractor shall hold the Owner harmless of any costs so incurred.
2.0 GENERAL
There are existing utilities within the project limits with unknown depths and locations. Utility potholing is necessary to positively locate utilities that cannot be located based on visible features or other methods.
Coordinate with utility owners for authorization of potholing method for each proposed pothole. Submit a potholing plan for authorization at least two weeks in advance of proposed potholing and include traffic control plans per these project specifications if required by the City, based on location of the pothole. The horizontal and vertical position of the exposed facility must be tied to a survey control point. The position must be identified either by GPS or traditional survey coordinates. Report the vertical distance below grade.
Return test hole locations to their existing condition or better. Dispose of spoils. **END OF SECTION 02016**
02050 DEMOLITION / EXISTING FACILITIES
1.0 GENERAL
Remove and dispose of items as indicated on the plans. Unless a removed item is identified as being salvaged, it becomes the property of the Contractor for disposal. Items indicated as being salvaged shall be packaged, tagged, and delivered to a location within the City, as directed by the Engineer.
Items indicated to be reset shall be removed and reset in place. Replace items at your cost if you damage or break them during removal or prior to being reset.
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1.01 SUMMARY
A. Section includes:
1. Selective demolition, dismantling, cutting and alterations as indicated, specified and necessary for the completion of the contract.
2. Removing demolished materials from the site.
3. Protection of work to remain.
1.02NIC work
A. Encapsulation, removal and disposal of asbestos and other hazardous materials.
2.00PRODUCTS
Not used
3.00EXECUTION
3.01 GENERAL
A. Protection:
1. Do not begin demolition until temporary partitions, barricades, warning signs and other forms of protection are installed.
2. Protect trees, plants, utilities and existing improvements that are not to be removed from injury or damage resulting from the Contractor's operation. Replace damaged landscaping, improvements and utilities in kind.
3. During demolition provide safeguards, including warning signs and lights, barricades, and the like, for protection of the public, Contractor's employees and existing improvements to remain.
B. Noise Control:
1. Exercise caution and care to prevent generation of unnecessary noise.
2. Keep noise levels to the minimum possible.
3. Discontinue noise producing operations, when requested by the Owner and reschedule at a mutually acceptable time.
C. Dust control: Control dust at all times.
1. Provide dust -tight partitions to prevent dust escaping into other parts of the building where demolition is not in progress.
2. Assume liability for claims related to flying dust caused by this work.
D. Water control:
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1. Control the use of water to prevent damage to the existing facility and improvements to remain. Provide wet vacuum equipment where water, such as waste cooling water from concrete sawing, is used.
2. Provide impermeable floor covering and suitable dams to prevent damage by water, immediately clean up and remove surplus water, and water spilled in non -working areas.
3. Assume liability for claims related to water seepage and leakage caused by this work.
E. Security: Coordinate security with the Owner.
1. Take necessary precautions to keep trespassers out of demolition areas.
2. Properly secure demolition areas from entry when demolition is not in progress but do not block required exit ways.
F. Safety: If at any time the safety of existing construction appears to be endangered, take immediate measures to support such endangered construction; cease operations and immediately notify the Construction Manager.
Do not resume demolition until Construction Manager's instructions are received.
3.02DEMOLITION
A. Existing conditions: Intent of Drawings is to show existing conditions with information developed from field surveys and to generally show the extent and type of demolition required.
1. Make a detailed survey of existing conditions prior to commencing demolition, and report discrepancies or conflicts between Drawings and actual conditions in writing to the Construction Manager for clarifications and instructions.
2. Do not proceed where such conflicts or discrepancies occur prior to the receipt of Construction Manager's instructions.
3. Materials and finishes to be salvaged shall be carefully removed and restored.
B. The Contractor shall be fully responsible for the adequacy and installation of temporary shoring and bracing systems used during demolition.
C. Demolition shall be performed by skilled, trained and properly equipped personnel.
D. Remove existing construction only to the extent necessary for the proper installation of new construction and junction with existing materials. Cut back finished surfaces to straight, plumb or level lines as required.
E. If unanticipated conditions which conflict with intended function or design are encountered, investigate and measure both nature and extent of the conflict.
1. Submit report to Construction Manager in written, accurate detail.
2. Pending receipt of directive from Construction Manager, rearrange demolition schedule as necessary to continue overall job progress without delay.
F. Coordinate demolition with other trades to assure the proper sequence, limits, methods and time of performance. Schedule demolition so as to impose a minimum of hardship on the present TS6
operation of the facilities and the performance of the work of other trades.
G. Whenever possible, use small hand or small power tools designed for sawing or grinding; whenever possible avoid the use of tools with a hammering and chopping motion. Cut through finished surfaces from the exposed or finished side into concealed surfaces.
H. In general, remove materials as follows:
1. Portland cement concrete.
a. Use removal methods that will not crack or structurally disturb adjacent concrete constructions.
b. Cut back concrete to clean, straight lines by saw cutting a minimum of 1 inch deep; remainder of concrete may be jack -hammered.
3.03 CLEAN-UP DISPOSAL
A. Debris, waste and removed materials, other than items to be salvaged, are Contractor's property for legal disposal off the site.
B. Continuously clean-up and remove these items and do not allow them to accumulate on the site. **END OF SECTION 02050**
02100 MOBILIZATION/DEMBOBILIZATION
A. Description. The Contractor shall provide labor, materials and equipment to prepare the site for the timely start and efficient completion of all work. The contractor is responsible for obtaining suitable storage and equipment area for use during the project. Coordinate suitable location on the Project Site with City staff. The storage yard shall be cleaned and restored to the condition prior to its use. All costs associated with this storage yard including setup, maintenance, dust control and restoration is the responsibility of the Contractor.
Contractor should anticipate working in wet weather months. No additional payment will be allowed for mobilization/demobilization beyond the initial bid item. This includes obtaining any necessary licenses and permits, providing required submittals, public notices, project schedule, material certificates, and attending pre -construction and progress meetings.
Demobilization work includes site cleanup, removing of equipment, personnel, temporary facilities, preparation of record drawings, and other construction resources at job completion.
B. Measurement and Payment: Measurement and payment for this item shall be as specified in the Items of Construction, Mobilization/Demobilization.
**END OF SECTION 02100**
02110 SCHEDULING
A. Description: The Contractor shall submit a complete, tentative project schedule at the time of the pre - construction meeting. A minimum of five (5) working days prior to beginning work, the Contractor shall submit to the City Engineer for approval a detailed written schedule of work. Following approval, the Contractor shall adhere diligently to the approved written schedule in the prosecution of the work.
TS7
B. Measurement and Payment: Measurement and payment for this item shall be as specified in the Items of Construction, Mobilization/Demobilization.
**END OF SECTION 02110**
02120 SURVEYING AND CONSTRUCION STAKING
A. Description. The Contractor shall provide all surveying and construction staking necessary to construct the improvements as shown on the plans, specified herein and as directed by the Engineer.
The Engineer shall approve all staking layouts prior to construction of any improvement that requires staking.
B. Measurement and Payment: Payment for Surveying and Construction Staking is included in the various bid items and will not be considered for separate or additional payment. **END OF SECTION 02120**
02200 TRAFFIC CONTROL SPECIFICATION
Public Convenience and Safety (Traffic Control) —
Public convenience and safety shall be according to Section 7-10 of the Standard Specifications for Public Works construction and regional supplement amendments.
The contractor shall submit traffic control plans for work to be done two weeks before starting of work, for the City engineer's approval. The contractor shall comply with the traffic control plans. Traffic control shall conform to California MUTCD, latest edition.
The contractor shall be fully responsible for the adequacy of any traffic plan used. Contractor shall notify the City at least two (2) working days before starting any construction detour.
A separate traffic control plan for any work on arterial and collector streets shall be submitted for approval prior to the start of any work on these streets. The contractor shall also submit separate traffic control plans for work within any major intersections, state rights -of -way, areas where schools are present and other congested areas. The traffic control plan shall include phasing, existing striping, and temporary striping during construction, and fmished permanent striping.
All traffic control plans shall be prepared and signed by a licensed C31 contractor or qualified contractor with a general "A" license. The contractor shall employ full time dedicated personnel whose sole responsibility is to do traffic control only. The contractor is prohibited from using other crew personnel to perform this job.
It is the responsibility of the contractor performing work on a City street to install and maintain the approved traffic control devices and such additional traffic control devices (e.g. flag persons) as may be required to insure safe movement of traffic motorists, bicyclists, pedestrian and construction staking staff through and around the work area and provide maximum protection and safety to construction workers.
The contractor shall be responsible for adequate barricading of the work area and controlling of traffic near the project as specified in sub Section 7-10 of the standard specifications or as directed by the engineer.
TS8
The contractor shall be responsible for preserving original locations and dimensions of all existing striping obliterated by the work. The contractor shall be responsible for maintaining sufficient striping control points to be able to restore lane dimensions. The contractor shall install and maintain temporary overlay yellow or white markers, whichever is applicable, where striping cannot be restored by the end of the workday. The contractor shall replace all roadway striping and pavement markings removed by the construction work.
At least five (5) working days before commencing work, the contractor shall submit its construction schedule to the City for approval. This schedule shall allow residents or businesses along the streets to be worked, ample "on street" parking (if parking is allowed) within a reasonable distance from their homes or place of business. Based upon the construction schedule, the contractor shall notify residents and businesses of the proposed work, and post temporary "No Parking" signs at least 72 hours in advance.
Notification shall be in the form of "door knocker" notices and must be in English and Spanish. The contractor shall submit a sample of the "no parking" sign and "door knocker" notices to the City for approval.
All "No Parking signs" shall be mounted on "A -frames" only. Signs taped on traffic cones, trees or other structures shall not be permitted.
The City reserves the right to observe the traffic control plans in use and to make changes as field conditions warrant. Any changes will supersede the plans and will be done solely at the contractor's expense.
The contractor shall arrange with Recology, San Benito County to maintain trash pick-up services for those property owners affected by the work. The contractor shall notify the transit agencies of any delays to their buses. The contractor shall notify all schools (public and/or private) where the work may affect school operations.
Contractor is required to fill up and submit the traffic control estimate form. Payment will be adjusted based on the streets completed from this list.
Full compensation for furnishing all labor, materials, tools, equipment, and incidentals, and all necessary traffic control as required by the City is considered included in the contract price paid for Traffic Control and Construction Area Signs and no additional compensation will be allowed.
Failure to abide by the approved traffic control plan will be cause for the Engineer to immediately stop work until traffic control activities are corrected. The City does not compensate the Contractor for any loss of work due to failure to follow the approved plan.
**END OF SECTION 02200**
02370 REMOVAL OF USA AND CONSTRUCTION MARKINGS
A. General: Remove all street and sidewalk marking used to identify the location of utility services under Underground Service Alert (USA) program and construction related markings, including but not limited to horizontal and vertical grade markings, survey stationing, offsets, curb lines, and other layout lines.
B. Method and Materials: Prior to removal, perform a test section to demonstrate that the removal method selected completely removes markings and does not damage the pavement or sidewalk. Engineer shall TS9
approve marking removal method.
C. Schedule: Remove markings within one week after the completion of the work or as determined by the Engineer.
D. Compliance with National Pollution Discharge Elimination System (NPDES) Act.: Comply with federal, state and local requirements of the NPDES Act and the Regional Water Quality Control Board. Prevent material generated by the removal operations from entering the storm drain system by covering or barricading storm drains. Vacuum and dispose of material off -site in accordance with Section 300-1.3 of the Standard Specifications.
E. Failure to Remove Markings: Street and sidewalk markings not removed within the required time may be removed or caused to be removed by the City. The City will charge the Contractor a fee up to three times the actual cost for removing the markings. This fee will cover the cost of removals and compliance with the NPDES and administration overhead costs.
F. Payment: Payment for this work is included in the various bid items and will not be considered for separate or additional payment.
**END OF SECTION 02370**
02400 STORM WATER BEST MANAGEMENT PRACTICES (Water Pollution Control Plan) Prepare a Water Pollution Control Plan in compliance with section 13 of Caltrans Standard Specifications. Submit to the City for review and approval. Revise and resubmit as necessary until it is approved. Do not begin work without an approved plan.
The Contractor will provide all labor, materials and equipment to protect and secure the site with the appropriate Storm Water Best Management Practices (BMPs) to prevent pollutants from escaping and entering the storm drain system and to keep all substances used in or resulting from the work out of the gutters, storm drains and creeks by utilizing Storm Water Best Management Practices (BMPs) measures as approved by the City of Hollister. BMPs shall comply with the CASQA Construction BMP Handbook, unless otherwise approved by the City. The Contractor will maintain said BMPs throughout the duration of the Project, including but not limited to the following BMPs:
1. Sediment Control
a. SE -10 "Storm Drain Inlet Protection"
2. Waste Management and Materials Pollution Control
a. WM-3 "Stockpile Management"
b. WM-4 "Spill Prevention"
c. WM-5 "Solid Waste Management"
d. WM-6 "Hazardous Waste Management
e. WM-8 "Concrete Waste Management
3. Non -Storm Water Management Control
a. NS -9 "Vehicle and Equipment Fueling"
b. NS -10 "Vehicle and Equipment Maintenance"
4. Employee and subcontractor training and instruction.
It shall be the Contractor's responsibility to monitor and maintain all BMP measures on a daily or more frequent basis, including non -work days and especially during storms. Special attention shall be given to dry cleanup of spills, proper disposal of concrete and paint, shoveling dirt and debris from gutters, sweeping roads within the project limits, as well as, roads entering and exiting the project limits. In addition all catch basins (both new and existing) at the project site, and which are determined by the Engineer to have been affected by the construction, shall be cleaned out by the contractor at the end of the project.
TS10
The Contractor shall comply with all Local, State, and Federal laws regarding storm water compliance. Further, it is the Contractor's responsibility to field verify the location of all storm drain inlets and facilities, and to protect and secure said storm drain inlets and facilities with the appropriate storm water BMPs to prevent pollutants from escaping the site and entering the storm drain system. Nothing in the Plans and Specifications shall relieve the Contractor of these responsibilities.
** END OF SECTION 02400 **
02500 COLD PLANE ASPHALT CONCRETE
Cold plane activity will result in all asphalt concrete being removed from the roadway, exposing the aggregate base layer. Contractor shall recompact and proof roll the existing aggregate base to 95% relative compaction, or as directed by the Engineer, prior to placing the HMA overlay. Contractor shall apply water as necessary to prepare aggregate base for compaction.
Full compensation for watering and recompacting existing aggregate base is considered as included in the contract price paid for Cold Plane Asphalt Concrete, and no separate payment will be made therefor **END OF SECTION 02500**
03200 HOT MIX ASPHALT CONCRETE
Furnish and install hot mix asphalt concrete with a maximum aggregate size of The asphalt binder shall be PG 64-10. Comply with the City Specifications for all material requirements.
Minimum ambient air and surface temperatures for paving shall be in accordance with Section 39 of the Caltrans Standard Specifications, and as shown below:
SECTION 39
Minimum Ambient Air and Surface Tent eratures
ASPHALT CONCRETE
Lift tltickn
(feet)
Ambient air (T)
Surface l'F)
Unmodified
asphalt binder
Modified asphalt
binder
Unmodaled
asphalt binder
Modified asphalt
binder
Type A lid and Type A HMA araduced'uvith vow water injection technology ;=0.15
55 50
60 55
-4.15
45 45
50 50
Type A HMA produced with .V MA addtive technology
<0.15
45 45
50 4 `,
x{].15
40 4C
40 4:
Contractor is responsible for quality control testing of asphalt concrete. Testing frequency for HMA/WMA shall be 10 density tests for each 500 tons taken at random locations representative of the tonnage placed, or at the discretion of the Public Works Inspector. For areas containing less than 500 tons, test at a rate of 1 test site for each 50 tons or portion of HMA/WMA placed. No area shall be represented by fewer than 5 test sites. Additional testing can be requested at the discretion of the public works inspector at no additional cost to the City. Full compensation for all quality control testing as described in this section is considered is as included in the price paid for Hot Mix Asphalt, and no separate payment will be made therefor.
Should the approved independent agency fail to test in accordance with this section (03200), the City may hire a separate independent testing agency to perform oversight testing, with the costs to be borne by the Contractor.
**END OF SECTION 03200**
TS11
03250 BASE FAILURE REPAIR
Base failure areas are not shown on the plans and will be marked in the field by the Engineer.
Coordinate your work with the Engineer to allow them to walk the project locations after cold planing activities have occurred and after the removal of existing curb & gutter.
After completion of cold planning activities and removal of existing curb & gutter, remove existing aggregate base to the depth and dimensions as shown on the plans or as directed by the Engineer, and place Geogrid and Aggregate Base as shown on the project plans, based upon the location of the base failure repair. The Engineer determines the exact limits of base failure repair. The minimum width of roadway section to be removed for base failure repair within the existing roadway limits shall not be less than 4 feet unless otherwise noted on the plans.
Place base failure repair under the Method construction process (Caltrans Standard Specifications).
Remove existing roadway section by grinding with a milling machine capable of cutting to a neat line or by sawcutting. Do not damage any pavement that is to remain in place. Minimize the disturbance of materials to be left in place during removal or roadway sections.
Remove failed pavement and base rock to the required depth and thoroughly compact the material remaining in place to a minimum of 95% relative compaction.
Dispose of removed material.
The surface must be:
1. Textured uniformly
2. Compacted firmly
3. Without depressions, humps, and irregularities
Furnish and install geogrid as shown in the detail. Geogrid must be Tensar TriAx (TX) Geogrid or approved equal. Full compensation for furnishing and installing geogrid as part of base failure repair is included in the price paid for Base Failure Repair (AC) and no separate payment will be made therefor.
Damage to pavement which is to remain in place shall be repaired to a condition satisfactory to the Engineer, or the damaged pavement shall be removed and replaced with new HMA if ordered by the Engineer. Repairing or removing and replacing pavement damaged outside the limits of pavement to be reconstructed shall be at the Contractor's expense.
Perform base failure repair as shown on the plans. Repair work should conform to the cold planned surface, so that entire roadway receives final lift of pavement. **END OF SECTION 03250**
03400 UTILITY ADJUSTMENTS AND COORDINATION
Utilities will require adjustment to facilitate cold planning and overlay work. Prior to cold planning, all utilities within the limits to be cold planed must be adjusted down below the finish grade of the cold planning activity, so that no part of the existing utility is in conflict with the proposed cold planning work. After all overlay work is completed, utilities within limits of the overlay work must be adjusted up to match finished grade.
The Contractor is responsible for adjusting all City -owned utilities and those of Sunnyslope County Water District.
TS12
CITY OWNED UTILITIES
The Contractor is responsible for adjustment of all City -owned utilities, including:
Sewer
Storm Drain
Monuments
Water
Coordinate with the Engineer to invite the appropriate City utility representatives to the Pre - Construction Meeting. Coordinate all utility work prior to starting work with utility owner. Do not perform work on any utility without receiving advance approval from owner. Furnish standard details to owner for confirmation of approach.
All work on City -owned facilities must comply with the City of Hollister Standard Plans.
NON -CITY OWNED UTILITIES
Sunnyslope County Water District
The Contractor is responsible for adjusting Sunnyslope County Water District water utilities. No known Sunnyslope utilities requiring adjustment are within the project limits The Engineer will furnish the Sunnyslope County Water District contact name to you.
Confirm with the agency representative that no known Sunnyslope utilities are within the project limits. If utilities are present within the project limits, invite Sunnyslope County Water District to the Pre -Construction Meeting.
Perform work on Sunnyslope facilities in accordance with their agency standards and specifications.
PG&E
No known PG&E utilities requiring adjustment are within the project limits. Should adjustment of one or more PG&E utilities be necessary, the following will apply:
PG&E is responsible for adjustment of their utilities, including:
Gas
Electric
The Engineer will furnish the PG&E contact name to you. Invite PG&E to the Pre -Construction Meeting.
Coordinate your work with PG&E to accommodate their work. **END OF SECTION 03400**
06100 CURB AND SIDEWALK (MINOR CONCRETE)
Furnish and place aggregate base as part of minor concrete work. Aggregate base is included in the price paid for Minor Concrete.
Detectable warning surfaces shall be yellow and must comply with Caltrans Standard Specifications, Section
73. **END OF SECTION 06100**
TS13
07000 RESTORE PRIVATE PROPERTY
Restore private property as shown on the plans and as impacted by the project work. This may include reconstructing existing private irrigation systems, replacing impacted lawn areas with sod, fence replacement or resetting, and other private softscape or hardscape restoration work as necessary adjacent to the project work within the right-of-way.
Coordinate with property owners to test private irrigation systems that will be impacted by construction. Test the system in the presence of the Engineer. Reconstruct the system to operate as it did pre -construction. **END OF SECTION 07000**
08000 SIGNING AND STRIPING
Signing and roadside signs must comply with the City Standard Specifications and with Section 82, "Signs and Markers" of the Caltrans Standard Specifications.
Traffic stripes and pavement markings must comply with the City Standard Specifications and Section 84, "Markings" of the Caltrans Standard Specifications.
Furnish and place blue retroreflectors on the finished roadway surfaces adjacent to existing fire hydrants, at locations determined by the Engineer.
Preformed Thermoplastic Pavement Markings
Preformed thermoplastic pavement markings must:
1. Conform to AASHTO designation M249, except it must be supplied in a preform state and may be a color other than white or yellow
2. Be on the Authorized Material List for signing and delineation materials
3. Be free from lead, chromium, arsenic, cadmium, barium, and other toxic metals
4. Have glass beads embedded to depth of 60 percent of their diameters
5. Have resealing characteristics and be capable of fusing with itself
6. Be resistant to sunlight, water, salt, or adverse weather conditions and must be impervious to motor fuels, lubricants, hydraulic fluids, oil, and gasoline
Submittals:
Submit surface frictional properties test results for each lot or batch of preformed thermoplastic.
Submit the manufacturer's material data for the surface preparation adhesive before it is applied to precondition the pavement surface.
TS14
Preformed Thermoplastic Retroreflectivity Requirements
Traffic stripe
material
White (min, mcd
m-2 lx -1)
Yellow (min, mcd
m-2 lx -1)
Other colors
(min, mcd m-2
lx -1)
Preformed
thermoplastic
250
125
125
The applied preformed thermoplastic pavement marking must have a skid resistance value of 60.
After cleaning the surfaces, apply sealer or primer as recommended by the manufacturer. Apply the preformed thermoplastic under the manufacturer's instructions. You may use a surface preparation adhesive to precondition the pavement surface.
Preformed thermoplastic pavement markings must be ready for traffic immediately after application.
Contrast for preformed thermoplastic pavement markings consists of a black border with a width from 2 to 4 inches. The borders must be nonreflective film bonded to the outer edge of the marking.
Within 30 days of application, test the skid resistance of the preformed thermoplastic pavement markings under ASTM E303.
**END OF SECTION 08000**
TS15
EXHIBIT 10
Bonds
BID BOND
KNOWN ALL PERSONS BY THESE PRESENTS that, Rapid Services, LLC dba Rapid Grading Services hereinafter called the PRINCIPAL, AND The Ohio Casualty Insurance Company , a corporation duly organized under the laws of the State of New Hampshire having its PRINCIPAL place of business at 175 Berkeley Street, Boston, in the State of Massachusetts and authorized to do business in the State of California, hereinafter call the SURETY, are held and firmly bound unto the City of Hollister, hereinafter called the OBLIGEE, on order, in the sum of Ten Percent of Bid Amount Dollars ($10% of total bid ) (being at least ten percent (10%) of the total amount of PRINCIPAL's bid) lawful money of the United States, for the payment of which we bind ourselves, our heirs, executors, administrators, successors, and assigns, jointly and severally, firmly by these present.
THE CONDITIONS OF THIS OBLIGATION ARE SUCH THAT:
WHEREAS, the PRINCIPAL has submitted its Bid for the project entitled:
Section 2 Grind & Overlay Road Rehabilitation Pro.ect, CIP C2212 to the OBLIGEE, said Bid, by reference thereto; being hereby made a par hereof.
NOW THEREFORE, if said Bid is rejected or, in the alternative, if said Bid is accepted and the PRINCIPAL signs and delivers a contract and furnishes a Performance bond and Payment Bod, in the form and within the time required by the Bid and the Contract Documents, then this obligation shall become null and void, otherwise the same shall remain In full force and effect and upon default of the PRINCIPAL shall be forfeited to the OBLIGEE, it being expressly understood and agreed that the liability of the SURETY for any and all default of the PRINCIPAL shall be the amount of this obligation as herein stated, as liquidated damages. Such forfeiture and liquidated damages under this bond shall be without prejudice to the OBLIGEE's right to pursue any excess actual damages from the PRINCIPAL for breach of contract or otherwise.
The SURETY, for value received, hereby agrees that the obligations of said SURETY and its bond shall not be impaired or affected by any extension of the time within which the OBLIGEE may accept such Bid, and the SURETY hereby waives notice of any such extension.
In the event suit is brought upon this bond by the OBLIGEE and judgment is recovered, the SURETY shall pay, in addition to the sum set forth above, all costs incurred by the OBLIGEE in such suit, including reasonable attorney's fees and expert witness fees, to be fixed by the court.
Singed this 10th day of February , 2026
Rapid Grading Services
PRINCIPAL
RPO .0
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2003 :;0
BY:
Sl:Nif
The Ohio Casualty Insurance Company
SURETY
BY: /\.)
J y Nelso , Attorney -in -Fact
Note: Signatures of person executing for SURETY must be notarized and evidence of corporate authority attached.
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Liberty
Mutual
SURETY
POWER OF ATTORNEY
Liberty Mutual Insurance Company
The Ohio Casualty Insurance Company
West American Insurance Company
Certificate No: 8215440-980101
KNOWN ALL PERSONS BY THESE PRESENTS: That The Ohio Casualty Insurance Company is a corporation duly organized under the laws of the State of New Hampshire, that Liberty Mutual Insurance Company is a corporation duly organized under the laws of the State of Massachusetts, and West American Insurance Company is a corporation duly organized under the laws of the State of Indiana (herein collectively called the "Companies"), pursuant to and by authority herein set forth, does hereby name, constitute and appoint, Alexander Raynolds; Amanda Rodriguez; Andrea Hering; Anna Paganelis; Bill Frangieh; Charlene Reynolds; David Homer; Dmitriy Lazarev; James Untiedt; Jennifer Mullins; Jody Nelson; Joe Longwello; Joseph Velaquez; Laura Whitley; Madeline Michaels; Mahmud M. Ischanov; Mark Veytser; Maureen Ghina77i; Nick Del Biaggio; Robert Saint Amour; Timothy Walsh
all of the city of San Jose state of CA each individually if there be more than one named, its true and lawful attorney -in -fact to make, execute, seal, acknowledge and deliver, for and on its behalf as surety and as its act and deed, any and all undertakings, bonds, recognizances and other surety obligations, in pursuance of these presents and shall be as binding upon the Companies as if they have been duly signed by the president and attested by the secretary of the Companies in their own proper persons.
IN WITNESS WHEREOF, this Power of Attomey has been subscribed by an authorized officer or official of the Companies and the corporate seals of the Companies have been affixed thereto this 21st day of January , 2025 .
By:
State of PENNSYLVANIA
County of MONTGOMERY sS
On this 21st day of January , 2025 before me personally appeared Nathan J. Zangerle, who acknowledged himself to be the Assistant Secretary of Liberty Mutual Insurance Company, The Ohio Casualty Company, and West American Insurance Company, and that he, as such, being authorized so to do, execute the foregoing instrument for the purposes therein contained by signing on behalf of the corporations by himself as a duly authorized officer.
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed my notarial seal at Plymouth Meeting, Pennsylvania, on the day and year first above written.
Liberty Mutual Insurance Company
The Ohio Casualty Insurance Company
West American Insurance Company
Nathan J. Zangerle, Assistant Secretary
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r
ik.. 46yO10Ri g Member. Pennsylvania Association of Notaries , Notary Public This Power of Attorney is made and executed pursuant to and by authority of the following By-laws and Authorizations of The Ohio Casualty Insurance Company, Liberty Mutual Insurance Company, and West American Insurance Company which resolutions are now in full force and effect reading as follows:
ARTICLE IV— OFFICERS: Section 12. Power of Attorney.
Any officer or other official of the Corporation authorized for that purpose in writing by the Chairman or the President and subject to such limitation as the Chairman or the President may prescribe, shall appoint such attorneys -in -fact as may be necessary to act in behalf of the Corporation to make, execute, seal, acknowledge and deliver as surety any and all undertakings, bonds, recognizances and other surety obligations. Such attorneys -in -fact, subject to the limitations set forth in their respective powers of attorney, shall have full power to bind the Corporation by their signature and execution of any such instruments and to attach thereto the seal of the Corporation. When so executed, such instruments shall be as binding as if signed by the President and attested to by the Secretary. Any power or authority granted to any representative or attorney -in -fact under the provisions of this article may be revoked at any time by the Board, the Chairman, the President or by the officer or officers granting such power or authority.
ARTICLE XIII — Execution of Contracts: Section 5. Surety Bonds and Undertakings.
Any officer of the Company authorized for that purpose in writing by the chairman or the president, and subject to such limitations as the chairman or the president may prescribe, shall appoint such attorneys -in -fact, as may be necessary to act in behalf of the Company to make, execute, seal, acknowledge and deliver as surety any and all undertakings bonds, recognizances and other surety obligations. Such attorneys -in -fact subject to the limitations set forth in their respective powers of attorney, shall have full power to bind the Company by their signature and execution of any such instruments and to attach thereto the seal of the Company. When so executed such instruments shall be as binding as if signed by the president and attested by the secretary.
Certificate of Designation — The President of the Company, acting pursuant to the Bylaws of the Company, authorizes Nathan J. Zangerle, Assistant Secretary to appoint such attorneys -in -fact as may be necessary to act on behalf of the Company to make, execute, seal, acknowledge and deliver as surety any and all undertakings, bonds, recognizances and other surety obligations.
Authorization — By unanimous consent of the Company's Board of Directors, the Company consents that facsimile or mechanically reproduced signature of any assistant secretary of the Company, wherever appearing upon a certified copy of any power of attorney issued by the Company in connection with surety bonds, shall be valid and binding upon the Company with the same force and effect as though manually affixed.
I, Renee C. Llewellyn, the undersigned, Assistant Secretary, The Ohio Casualty Insurance Company, Liberty Mutual Insurance Company, and West American Insurance Company do hereby certify that the original power of attorney of which the foregoing is a full, true and correct copy of the Power of Attorney executed by said Companies, is in full force and effect and has not been revoked.
IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed the seals of said Companies this 10 day of February , 2026 .
LMS-12873 LMIC OCIC WAIC Multi Co 02/24
Commonwealth of Pennsylvania - Notary Seal
Teresa Pastella. Notary Public
Montgomery County
My commission expires March 28.2029
Commission number 1126044
By: �
ores
By:
Ltd&
Renee C. Llewellyn, Assistant Secretary
CALIFORNIA ACKNOWLEDGMENT
CIVIL CODE § 1189
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
State of California
County of '1 CkCe
On CD2.-1 O - 20'Zk before me,
Date
personally appeared _
}
e l L `—yvk (A -Nei re. fi'so l rl b
ere Insert Name and Title of the Officer
Name(s) of Signer(s)
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
KELLY MICHELLE FISHLER
Notary Public • California
Placer County
Commission # 2541836
0A My Comm. Expires Dec 16. 2029
Place Notary Seal and/or Stamp Above
I certify under PENALTY OF PERJURY under the
laws of the State of California that the foregoing
paragraph is true and correct.
WITNESS my hand and official seal.
Signature
OPTIONAL
nature of Notary Public
Completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document.
Description of Attached Document
Title or Type of Document:
Document Date: Number of Pages:
Signer(s) Other Than Named Above:
Capacity(ies) Claimed by Signer(s)
Signer's Name:
❑ Corporate Officer — Title(s):
❑ Partner — ❑ Limited ❑ General
❑ Individual ❑ Attorney in Fact
❑ Trustee ❑ Guardian or Conservator
❑ Other:
Signer is Representing:
Signer's Name:
❑ Corporate Officer — Title(s):
❑ Partner — ❑ Limited ❑ General
❑ Individual ❑ Attorney in Fact
❑ Trustee ❑ Guardian or Conservator
❑ Other:
Signer is Representing:
©2019 National Notary Association
LABOR AND MATERIAL BOND
BOND NO.
PREMIUM INCLUDED IN PERFORMANCE BOND
KNOW ALL MEN BY THESE PRESENTS:
That we, , as Principal, and
, a corporation organized and doing
business under and by virtue of the laws of the State of and duly licensed to conduct a general surety business in the State of California as Surety, are held and firmly bound unto the as Obligee, in the penal sum of
($ ) DOLLARS, for which
payment , well and truly to be made, we find ourselves, our heirs, executors and successors, jointly and severally firmed by these presents.
THE CONDITION OF THE OBLIGATION IS SUCH THAT:
Whereas, the above -named Principal, has entered into an agreement which is made a part of this bond, with the , State of California, as Obligee, for the designated public improvements identified as , as
required by the Government Code of California.
Whereas, under the terms of said agreement, principal is required before entering upon the performance of the work, to file a good and sufficient payment bond with the to secure the claims to which reference is made in Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code of the State of California.
Now therefore, said principal and the undersigned, as surety, are held firmly bound unto the and all contractors, subcontractors, laborers, materialmen and other persons employed in the performance of the aforesaid agreement and referred to in the aforesaid Civil Code of the State of California for material furnished or labor thereon of any kind, or for amounts due under the Unemployment Insurance Act with respect to such work or labor that said surety will pay the same in an amount not exceeding the penal sum hereinabove set forth, and also in case suit is brought upon this bond, will pay, in addition to the penal sum thereof, costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by in successfully enforcing such obligation, to be
awarded and fixed by the court, and to be taxed as costs and to be included in the judgement therein rendered.
It is hereby expressly stipulated and agree that this bond shall inure to the benefit of any and all persons, companions, and corporations entitled to file claims under Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code, so as to give right of action to them or their assigns in any suit brought upon this bond.
Should the condition of this bond be fully performed, then this obligation shall become null and void, otherwise it shall be and remain in full force and effect.
The Surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of said agreement or the specifications accompanying the same shall in any manner affect its obligations on this bond, and it does hereby waive notice of any such change, extension, alteration or addition.
In witness whereof, this instrument has been duly executed by the principal and surety above names, on PRINCIPAL: SURETY
Attorney -in -Fact
10-2
PAYMENT & PERFORMANCE BOND
BOND NO.
$ premium is for a
term of year(s)
KNOW ALL MEN BY THESE PRESENTS:
That we, , as Principal, and
, a corporation organized and doing
business under and by virtue of the laws of the State of and duly licensed to conduct a general surety business in the State of California as Surety, are held and firmly bound unto the as Obligee, in the penal sum of
($ ) DOLLARS, for which
payment , well and truly to be made, we find ourselves, our heirs, executors and successors, jointly and severally firmed by these presents.
THE CONDITION OF THE OBLIGATION IS SUCH THAT:
Whereas the Obligee and Principal have entered into an agreement whereby Principal agrees to install and complete certain designated public improvements, which agreement, identified as , is hereby referred to and made a part hereof, and
Whereas, said Principal is required under the terms of said agreement to furnish a bond for the faithful performance of said agreement.
Now therefore, the condition of this obligation is such that if the above bounden Principal, his or its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, well and truly keep and perform the covenants, conditions and provisions in the said agreement and any alteration thereof made as therein provided, on his or their part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their intent and meaning, and shall indemnify and save harmless Obligee, its officers, agents, and employees, as therein stipulated, then this obligation shall become null and void, otherwise it shall be and remain in full force and effect.
As a part of the obligation secured hereby and in addition to the penal sum specified therefor, there shall be included costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by Obligee in successfully enforcing such obligation, all to be taxed as costs and included in any judgement rendered.
The Surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the agreement or to the work to be performed thereunder or the specifications accompanying the same shall in anywise affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the agreement or to the work or to the specifications.
In witness whereof, this instrument has been duly executed by the principal and surety above names, on PRINCIPAL: SURETY
Attorney -in -Fact
10-3
EXHIBIT 11
Insurance Certificate
STAFF REPORT
HOLLISTER CITY COUNCIL
MEETING DATE: March 16, 2026
REPORT # Airport -2026-06
AGENDA ITEM: A RESOLUTION APPROVING THE FIRST AMENDMENT TO THE AGREEMENT BETWEEN THE CITY AND KIMLEY-HORN AND ASSOCIATES, INC.
TO PERFORM AN ECONOMIC IMPACT STUDY FOR THE HOLLISTER MUNICIPAL
AIRPORT
DEPARTMENT: Airport
DEPARTMENT HEAD: Jeff Crechriou, Airport Director
COUNCIL NEXT STEPS: Adopt a resolution approving the First Amendment to City of Hollister General Services Agreement between the City and Kimley-Horn and Associates, Inc. to perform an Economic Impact Study for the Hollister Municipal Airport.
DISCUSSION: In the fall of 2024, the Airport desired to conduct an Economic Impact Study (EIS), the four regional General Aviation (GA) Airports, Hollister, Marina, Salinas and Watsonville issued a Request for Proposal (RFP), and Kimley-Horn and Associates Inc. (KH) of Orange, California was selected and entered into an agreement with City of Hollister with a term of May 23, 2025, through April 3, 2026. This agreement was approved under the City Manager's purchasing authority.
With all four regional GA Airports entering into agreements for Economic Impact Studies, the cost to each airport was lower than if each airport pursued such an EIS individually.
Due to delays in receiving taxation information from the respective counties, KH has requested an extension of the term to complete the respective EIS. The term extension will also allow for scheduling the EIS presentation to the Airport Advisory Commission and to the City Council.
The original agreement is amended to include Section 3, Term extending the contract through September 30, 2026. All other terms and conditions of the original agreement remain unchanged.
FISCAL IMPACT: There is no fiscal impact or increase in compensation in approving the First Amendment.
PREVIOUS COUNCIL OR COMMISSION ACTION: N/A
CEQA: N/A
ATTACHMENTS:
1. Resolution
2. First Amendment
3. Original Agreement
RESOLUTION NO. 2026-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOLLISTER
APPROVING THE FIRST AMENDMENT TO THE CITY OF HOLLISTER
GENERAL SERVICES AGREEMENT BETWEEN THE CITY AND
KIMLEY-HORN AND ASSOCIATES, INC. TO PERFORM AN ECONOMIC
IMPACT STUDY FOR THE HOLLISTER MUNICIPAL AIRPORT
WHEREAS, in the fall of 2024, the Airport desired to conduct an Economic Impact Study (EIS), the four regional General Aviation (GA) Airports, Hollister, Marina, Salinas and Watsonville issued a Request for Proposal (RFP), and Kimley-Horn and Associates, Inc. (KH) of Orange, California was selected and entered into an agreement with City of Hollister with a term of May 23, 2025, through April 3, 2026; and WHEREAS, with all four regional GA Airports entering into agreements for Economic Impact Studies, the cost to each airport was lower than had each airport pursued such an EIS individually; and
WHEREAS, due to delays in receiving taxation information from the respective counties, KH has requested an extension of the term to complete the respective EIS; and WHEREAS, the original agreement is amended to include Section 3, Term extending the contract through September 30, 2026. All other terms and conditions of the original agreement remain unchanged; and
WHEREAS, there is no fiscal impact or increase in compensation in approving the First Amendment.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Hollister does hereby approve the First Amendment to the City of Hollister General Services Agreement between the City and Kimley-Horn and Associates, Inc. to perform an Economic Impact Study for the Hollister Municipal Airport.
PASSED AND ADOPTED, by the City Council of the City of Hollister at a regular meeting held on March 16, 2026, by the following vote:
AYES:
NOES:
ABSTAINED:
ABSENT:
Roxanne Stephens, Mayor
Resolution No. 2026-XX
ATTEST: APPROVED AS TO FORM:
Lozano Smith Attorneys at Law
Jennifer Woodworth, MMC, City Clerk Jennifer P. Thompson, City Attorney I, Jennifer Woodworth, MMC, City Clerk of the City of Hollister, do hereby certify that the attached Resolution No. 2026-XX is an original resolution, or true and correct copy of a City resolution, duly adopted by the Council of the City of Hollister at a regular meeting held on March 16, 2026, at which meeting a quorum was present.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Hollister on March 16, 2026.
Jennifer Woodworth, MMC
City Clerk of the City of Hollister
FIRST AMENDMENT TO
CITY OF HOLLISTER GENERAL SERVICES AGREEMENT
BETWEEN THE CITY AND KIMLEY HORN AND ASSOCIATES, INC.
THIS FIRST AMENDMENT TO AGREEMENT is made and entered into this day of March, 2026, by and between the City of Hollister, California, a municipal corporation ("City"), and Kimley-Horn and Associates Inc., ("Contractor" and together with City, the "Parties").
WHEREAS, City and Contractor have previously entered into an Agreement for services related to the Airport Economic Impact Study ("Agreement") dated May 23, 2025; and WHEREAS, as written the term of the Agreement was limited to the duration of the project, beginning May 23, 2025, to April 3, 2026; and
WHEREAS, Section 17 provides that the Agreement must be amended by writing signed by both Parties and approved by the City Council; and
WHEREAS, City and Contractor desire to amend said Agreement to extend the term.
NOW, THEREFORE, the Parties hereto, in consideration of the mutual covenants hereinafter recited, agree as follows:
1. This First Amendment is added to the Agreement.
2. Except as herein amended, the Agreement dated May 23, 2025, shall remain in full force and effect.
3. The Agreement term section, Section 3, shall be replaced and amended to read as follows:
"3. Term. The Term for performance of the Services shall be limited to the duration of the Project, and shall begin on May 23, 2025, and end on September 30, 2026 ("Term"), except as otherwise stated in Section 4 below, and Contractor shall complete the Services within the Term. There shall be no extension of the Term without an amendment signed by all Parties and approved by the City's governing board. Written notice by the City Manager or designee shall be sufficient to stop further performance of the Services by Contractor or the Contractor Parties. In the event of early termination, Contractor shall be paid for satisfactory Services performed to the date of termination. Upon payment by City, City shall be under no further obligation to Contractor, monetarily or otherwise, and City may proceed with the work in any manner City deems proper."
IN WITNESS WHEREOF, the parties have caused this First Amendment to Agreement to be executed on the date first above written.
CITY OF HOLLISTER
BY:
Mayor
APPROVED AS TO FORM:
BY:
City Attorney
CONTRACTOR, KIMLEY-HORN AND
ASSOCIATES, INC.
BY:
(Signature)
Frederick Venter, Senior Vice President
CITY OF HOLLISTER
GENERAL SERVICES AGREEMENT
This services agreement ("Agreement") is made and entered into effective May 23, 2025 (the "Effective Date"), by and between the City of Hollister ("City") and Kimley-Horn and Associates, Inc. ("Contractor" and together with City, the "Parties").
1. Contractor Services. Contractor agrees to provide the following services to City (collectively, the "Basic Services"): For the Airport Economic Impact Study (AEIS) project ("Project") (as further described in the Scope of Services, Exhibit A to this Agreement). Contractor shall provide services related to the Project other than Basic Services (i.e., "Additional Services") if directed in writing by City to perform specific Additional Services and if sufficient contract funds for Additional Services remain to pay for the directed Additional Services (see Section 5, below). "Services" shall mean Basic and Additional Services. Contractor agrees to perform such Services as expeditiously as is consistent with professional skill and care and the orderly progress of the Services and the Project. All services performed by the Contractor under this Agreement shall be conducted in a manner consistent with the level of care and skill ordinarily exercised by AGP professionals specially qualified to provide the services required by the City.
2. Contractor Qualifications. Contractor represents and warrants to City that Contractor, and all of Contractor's employees, agents or volunteers (the "Contractor Parties"), have in effect and shall maintain in full force throughout the Term of this Agreement all licenses, credentials, permits and any other qualifications required by law to perform the Services and to fully and faithfully satisfy all of the terms set forth in this Agreement. Contractor and any Contractor Parties performing Services shall be competent to perform those Services.
3. Term. The term for performance of the Services shall be limited to the duration of the Project, and shall begin on May 23, 2025, and end on April 3, 2026 ("Term"), except as otherwise stated in Section 4 below, and Contractor shall complete the Services within the Term. There shall be no extension of the Term without an amendment signed by all Parties. Written notice by the City Manager or designee shall be sufficient to stop further performance of the Services by Contractor or the Contractor Parties. In the event of early termination, Contractor shall be paid for satisfactory Services performed to the date of termination. Upon payment by City, City shall be under no further obligation to Contractor, monetarily or otherwise, and City may proceed with the work in any manner City deems proper.
4. Termination. Either Party may terminate this Agreement at any time by giving thirty (30) days advance written notice to the other Party. Notwithstanding the foregoing, City may terminate this Agreement at any time by giving written notice to Contractor if (1) Contractor materially breaches any of the terms of this Agreement; (2) any act or omission of Contractor or the Contractor Parties exposes City to potential liability or may cause an increase in City's insurance premiums; (3) Contractor is adjudged a bankrupt; (4) Contractor makes a general assignment for the benefit of creditors; or (5) a receiver is appointed because of Contractor's insolvency. Such termination shall be effective immediately upon Contractor's receipt of the notice.
{SR766261 }
5. Payment of Fees for Services. City agrees to pay Contractor based on the fees listed in Exhibit B for Services satisfactorily performed. Contractor shall not increase these fees over the course of this Agreement. Total fees paid by City to Contractor for Services under the Agreement shall not exceed Forty Two Thousand Two Hundred Ten Dollars ($42,210.00), which consists of a not -to -exceed amount of Thirty Eight Thousand Two Hundred Ten Dollars ($38,210.00) for performance of the Basic Services, and a not -to -exceed contingency amount of Four Thousand Dollars ($4,000.00) for performance of any Additional Services. Contractor acknowledges that the not -to -exceed fee for Basic Services, above, includes contingency compensation in the foreseeable event that more time and costs may be necessary to complete the Basic Services. Contractor shall perform all Basic Services required by the Agreement even if the not -to -exceed amount for performance of the Services has already been paid and no more payments will be forthcoming. City agrees to make payment within sixty (60) days of receipt of a detailed invoice from Contractor based on the fees, including any additional supporting documentation that City reasonably requests. Contractor shall not submit its invoices to City more frequently than monthly. Contractor will not be compensated for any Basic or Additional Services required as a result of wrongful acts or omissions.
6. Indemnity. To the fullest extent permitted by California Civil Code 2782.8, Contractor shall indemnify, defend with counsel approved by City, and hold harmless City, its officers, officials, employees and agents from and against any and all liability, loss, damage, expenses, and cost (including without limitation, attorney fees, expert fees and all other costs and fees of litigation) of every nature to the extent arising out of, pertaining to, or relating to Contractor's negligence, recklessness, or willful misconduct of Contractor hereunder or its failure to comply with any of its obligations contained in this Agreement. In no event shall the cost to defend charged to the Contractor exceed the Contractor's finally determined proportionate percentage of fault.
7. Equipment and Materials. Contractor at its sole cost and expense shall provide and furnish all tools, labor, materials, equipment, transportation services and any other items (collectively, "Equipment") which are required or necessary to perform the Services in a manner which is consistent with generally accepted standards of the profession for similar services. Notwithstanding the foregoing, City shall not be responsible for any damages to persons or property as a result of the use, misuse or failure of any Equipment used by Contractor or the Contractor Parties, even if such Equipment is furnished, rented or loaned to Contractor or the Contractor Parties by City. Furthermore, City may reject any Equipment or workmanship that does not conform to the requirements of this Agreement and Contractor must then promptly remedy or replace it at no additional cost to City and subject to City's reasonable satisfaction.
8. Insurance. Without in any way limiting Contractor's liability, or indemnification obligations set forth in Section 6 above, Contractor shall secure and maintain throughout the Term of this Agreement the insurance listed in Exhibit E. Neither Contractor nor any of the Contractor Parties shall commence performing any portion of the Services until all required insurance has been obtained and certificates indicating the required coverages have been delivered to and approved by City. All insurance policies shall include an endorsement stating that City and City Parties are named additional insureds. All of the policies shall be amended to provide that the insurance shall not be suspended, voided, canceled, reduced in coverage or in limits except after thirty (30) days' prior written notice has been given to City. If such a notice is not given or even if City receives a notice, City may, at its sole option, terminate this Agreement. All insurance policies shall include an endorsement stating that it is primary to any insurance Page - 2 - Kimley-Horn and Associates, Inc
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or self-insurance maintained by City and shall waive all rights of subrogation against City and/or the City Parties. A copy of the declarations page of Contractor's insurance policies shall be attached to this Agreement as proof of insurance.
9. Independent Contractor Status. The Parties agree that Contractor is free from the control and direction of City in connection with Contractor's performance of the Services. Contractor is hereby retained to provide the specified Services for City, which are outside the usual course of City's business.
Contractor certifies that it is customarily engaged in an independently established trade, occupation, or business to provide the Services required by this Agreement. Contractor understands and agrees that Contractor and the Contractor Parties shall not be considered officers, employees, agents, partners, or joint venturers of City, and are not entitled to benefits of any kind or nature normally provided to employees of City and/or to which City's employees are normally entitled.
10. Taxes. All payments made by City to Contractor pursuant to this Agreement shall be reported to the applicable federal and state taxing authorities as required. City will not withhold any money from fees payable to Contractor, including FICA (social security), state or federal unemployment insurance contributions, or state or federal income tax or disability insurance. Contractor shall assume full responsibility for payment of all federal, state and local taxes or contributions, including unemployment insurance, social security and income taxes with respect to Contractor and the Contractor Parties and otherwise in connection with this Agreement.
11. Confidential Information. All City information disclosed to Contractor during the course of performance of services under this Agreement shall be treated as confidential and shall not be disclosed to any other persons or parties excepts as authorized by City or required by law.
12. Designation of Key Personnel. The individuals specified in the attached Exhibit D shall provide the services set forth herein and shall be the persons primarily in charge of such work. No other individuals may provide services for Contractor on this project without first obtaining the written approval of the City Manager.
13. Assignment/Successors and Assigns. Contractor shall not assign or transfer by operation of law or otherwise any or all of its rights, burdens, duties or obligations under this Agreement without the prior written consent of City. Subject to the foregoing, this Agreement shall be binding on the heirs, executors, administrators, successors, and assigns of the respective Parties.
14. Conflict of Interest. Contractor warrants that neither Contractor, nor any of its employees, agents or subcontractors, has an actual or potential conflict of interest with the City in respect to the Services to be performed under this Agreement for the City. None of such individuals shall, during this term of this Agreement, acquire any interest which conflicts, or could potentially conflict, in any manner with the interests of the City.
15. Notice to Proceed; Progress; Completion. Upon execution of this Agreement by the parties, City shall give Contractor written notice to proceed with the Services. Such notice may authorize Contractor to render all of the Services contemplated herein, or such portions or phases as may be directed by the City. In the latter event, City shall, in its sole discretion, issue subsequent notices from time to time regarding further portions or phases of the Services. Upon receipt of such notices, Page - 3 - Kimley-Horn and Associates, Inc
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Contractor shall diligently proceed with the Services authorized and complete it within the agreed time period.
16. Severability. If any provision of this Agreement shall be held invalid or unenforceable by a court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision of this Agreement.
17. Amendments. The terms of this Agreement shall not be waived, altered, modified, supplemented or amended in any manner whatsoever except by written agreement signed by both Parties and approved by the City Council.
18. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California, excluding its choice of law rules. Any action or proceeding seeking any relief under or with respect to this Agreement shall be brought solely in the Superior Court of the State of California for the County of San Benito subject to transfer of venue under applicable State law, provided that nothing in this Agreement shall constitute a waiver of immunity to suit by the City.
19. Written Notice. Written notice shall be deemed to have been duly served if delivered in person to Contractor at the address located next to the party signatures below, or if delivered at or sent by registered or certified or overnight mail to the last business address known to the person who sends the notice.
20. Compliance with Law. Each and every provision of law and clause required by law to be inserted into this Agreement shall be deemed to be inserted herein and this Agreement shall be read and enforced as though it were included therein. Contractor shall comply with all applicable federal, state, and local laws, rules, regulations and ordinances. Contractor agrees that it shall comply with all legal requirements for the performance of duties under this Agreement and that failure to do so shall constitute material breach.
21. Non -Discrimination. There shall be no unlawful discrimination in the contracting of persons under this Agreement because of race, color, national origin, age, ancestry, religion, sex, or sexual orientation of such persons.
22. Attorneys' Fees. If a party to this Agreement commences a legal action against the other party to enforce a provision of this Agreement or seek damages related to the services provided under this Agreement, the prevailing party in the legal action will be entitled to recover from the other party all of its reasonable litigation expense, costs, and fees actually incurred, including reasonable attorneys' and experts' fees.
23. Liability of City. Notwithstanding anything stated herein to the contrary, City shall not be liable for any special, consequential, indirect or incidental damages, including but not limited to lost profits in connection with this Agreement.
24. Time. Time is of the essence for performance of the Services under this Agreement.
25. Waiver. No delay or omission by either Party in exercising any right under this Agreement shall operate as a waiver of that or any other right and no single or partial exercise of any right shall preclude Page - 4 - Kimley-Horn and Associates, Inc
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either Party from any or further exercise of any right or remedy.
26. Reports. Contractor shall maintain complete and accurate records with respect to the Services rendered and the costs incurred under this Agreement, including records with respect to any payments to employees and subcontractors. All such records shall be prepared in accordance with generally accepted accounting procedures. Upon request, Contractor shall make such records available to City for the purpose of auditing and copying such records for a period of five years from the date of final payment under this Agreement.
27. Ownership of Documents. All plans, studies, drawings, calculations, reports, specifications, estimates, and other documents or any other works of authorship fixed in any tangible medium of expression, including but not limited to physical drawings, data magnetically or otherwise recorded on computer disks, or other writings prepared or caused to be prepared by the Contractor under this Agreement ("Documents") shall be and shall remain the property of the City for all purposes, not only as they relate or may relate to the Services but as they relate or may relate to any other project.
Contractor will provide the City with a complete set of Documents, and will retain, on the City's behalf, the originals or reproducible copies of all Documents, however stored, in the Contractor's files for a period of no less than fifteen (15) years. Contractor shall promptly make available to City any original documents it has retained under this Agreement upon request by the City.
28. Licensing of Intellectual Property. This Agreement creates a non-exclusive and perpetual license for the City to copy, use, modify, reuse or sublicense any and all copyrights, designs and other intellectual property embodied in the Documents ("Intellectual Property") not only as they relate or may relate to the Services but as they relate or may relate to other projects. The Contractor shall require any and all subcontractors and subconsultants to agree in writing that the City is granted a similar non-exclusive and perpetual license for the Intellectual Property of such subcontractors or consultants that they provided to Contractor as part of the Services. The compensation for the Services includes compensation not only for any such use of the Intellectual Property in connection with the Services, but also for any re -use of the Intellectual Property by the City in relation to other projects. Contractor represents and warrants that Contractor has the legal right to license the Intellectual Property that Contractor, its subcontractors, or its subconsultants prepare or cause to be prepared under this Agreement.
29. Entire Agreement. This Agreement is intended by the Parties as the final expression of their agreement with respect to such terms as are included herein and as the complete and exclusive statement of its terms and may not be contradicted by evidence of any prior agreement or of a contemporaneous oral agreement, nor explained or supplemented by evidence of consistent additional terms. 30 Ambiguity. The Parties to this Agreement, and each of them, hereby represent that the language contained herein is to be construed as jointly proposed and jointly accepted, and in the event of any subsequent determination of ambiguity, all Parties shall be treated as equally responsible for such ambiguity.
31. Execution of Other Documents. The Parties to this Agreement shall cooperate fully in the execution of any and all other documents and in the completion of any additional actions that may be necessary or appropriate to give full force and effect to the terms and intent of this Agreement.
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32. Execution in Counterparts. This Agreement may be executed in counterparts such that the signatures may appear on separate signature pages. A copy, facsimile, or an original, with all signatures appended together, shall be deemed a fully executed agreement.
33. Warranty of Authority. The persons who have signed this Agreement warrant that they are legally authorized to do so on behalf of the respective parties, and by their signatures to bind the respective parties to this Agreement.
34. Mediation. A party to this Agreement shall, as a condition precedent to initiating any litigation against the other party, demand mediation of any dispute. The parties shall endeavor to include any third -party claimant in the mediation. The parties shall select a mediator and schedule the mediation within thirty (30) days of the initial demand for mediation. If the parties cannot agree on a mediator, the mediator shall be appointed by JAMS. The parties to the mediation, including the parties to this Agreement, shall pay equal shares of the mediator's fees. Each party shall bear its own attorney's fees related to the mediation.
35. Forms. Prior to performing any Services, Contractor shall prepare, execute, and submit all forms that may be required by law for this Agreement, including but not limited to an Iran Contract Act certification (Public Contract Code §2204). If a form is necessary, Contractor shall use the City's versions of these forms, which the City shall make available upon request.
CITY OF HOLLISTER
By:
Name: David Mirrione
* * * * * * * * * * * * * * * * * * * *
CONTRACTOR:
Kimley-Horn and Associates, Inc.
Title: City Manager
Address for City Notices:
City of Hollister
375 5th Street
Hollister CA 95023
By:
Name: Frederik Venter PE
Title: Senior Vice President
Address for Contractor Notices:
1100 West Town and Country Road
Suite 700
Orange CA 92868
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EXHIBIT A
Scope of Services
SCOPE OF SERVICES
The scope of services is as follows: Complete an Airport Economic Impact Study for Hollister Municipal Airport.
Sum ry ma
Kimley-Horn is completing an airport economic impact study (AEIS) for each of the Hollister, Marina, Salinas, and Watsonville Municipal Airports. The analysis will be conducted as a combined study to achieve economies of scale but will provide each airport a customized end product. This scope of work includes 11 tasks that were outlined in the Request for Proposals (RFP) that comprise a traditional economic impact analysis but also provide more data and tools that can be used by each City to communicate the quantitative and qualitative impacts of each Airport's contributions to their communities and the local and regional economy. This scope of services describes the workplan to complete the AEIS specifically for Hollister Municipal Airport (CVH) but acknowledges areas where coordination is needed between CVH and the other three study airports.
Detailed Scope of Services
Task 1: Project Kick-off Meeting
Kimley-Horn will use the kick-off meeting to not only discuss the Airport's expectations for the project, but also to gather critical information needed to evaluate on -airport activity, contact on -site tenants and reliant businesses, assess tax and aircraft valuation impacts, and explore unique impacts.
This expansion of the kick-off meeting will help to expedite the overall schedule by allowing the team to immediately proceed with subsequent tasks once the kick-off meeting is complete. Understanding this, Kimley-Horn will host a virtual kick-off meeting with representatives of the Airport with the intention to:
Establish expectations for the Airport and/or City to provide necessary financial, operational, and contact information
Discuss list of requested data to determine direct impacts for Airport administration activities (Task 2)
Review the agreed -upon project goals, tasks identified in the scope, deliverables, project schedule, and major milestones
Define the region for the economic impact study, which will be used in IMPAN to model impacts; study area could include one of Monterey, San Benito, and Santa Cruz counties or could encompass a wider area (discussed further in Task 4) Identify GIS data overlay (Task 9) scope and requirements Discuss the communication plan for coordination and project administration with the Airport
Establish an outreach plan to tenants, visitors, and non -aviation reliant businesses receiving surveys
Discuss availability of current tourism reports at a county or local level Page - 7 - Kimley-Horn and Associates, Inc
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Economic Terminology
Key to the usefulness of any economic impact study is the use of clear, easy -to -understand terminology. In this scope of services and subsequent study, the following terms will be used to describe economic impact types and economic impact measures. It is important to note these terms are different than the terms used in the RFP but are generally accepted as common terms in economic impact studies. These terms are the same as those used by other airports in the combined study, allowing for easier explanation and comparison between airports. • Direct Economic Impacts of On -airport Activity comprise the employment, payroll, and economic activity (output) of the airport administration and its on -site business tenants. • Direct Economic Impacts of Off -airport Visitor Spending include the employment, payroll, and economic activity directly supported when out-of-town visitors who traveled through the airport spend money at businesses in the community. It is important to note the RFP for this study considers direct visitor spending impacts as "indirect impacts," which differ from those described below.
• Secondary Impacts refer to the combined impacts of Indirect Impacts, which are generated when a portion of direct business revenues (output) is used to purchase goods or services from suppliers for the on -airport business, and Induced Impacts, which reflect the portions of airport and supplier employees' incomes spent in the region to buy groceries, pay rent, and other living expenses. The RFP refers to Secondary Impacts as "induced impacts." Economic impacts are typically communicated through multiple measures. The following measures will be used to describe the economic impacts generated by the Airport:
• Employment: Total number of people employed, both full-time and part-time. • Payroll: Total employment compensation, including wages, benefits, and taxes paid on behalf of employees (sometimes referred to as "labor income" or "total compensation"). • Output: Total expenditures for airport administration, capital projects, and tenant sales of goods and services as well as visitor spending in hospitality -related sectors (also referred to as "output," "sales," or "economic activity/impact").
The total impacts calculated for each measure are typically broken down into "on -airport" and "visitor spending." Tax impacts and off -airport non -aviation business impacts will be presented separately from an airport's total impacts. Using these terms, Kimley-Horn plans to present the impacts of the Airport as shown in the table below. All terminology will be discussed and agreed upon at the kick-off meeting to select the final terminology for the study. It is important that consensus on terminology is achieved early in the project for use in developing the surveys, Frequently Asked Questions (FAQ) document (discussed in Task 2), and communications toolkit (Task 10).
Em . loyment Pa roll Out • ut
Direct On -airport Activity
Direct Off -airport Visitor Spending
Total Direct Impacts
Indirect Impacts
Induced Impacts
Total Secondary Impacts
Total Impacts
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It is anticipated that the kick-off meeting would be held approximately two weeks after notice to proceed (NTP) is issued, providing sufficient time for Kimley-Horn to compile example tenant, visitor, and reliant business surveys and develop draft distribution letters. The Airport will be asked to compile information necessary to calculate on -airport impacts and contact necessary stakeholders, discussed further in Task 2 of this workplan. Key to this data gathering will be identifying data points that will be gathered from other municipal sources such as city GIS departments and Assessor -County Clerk - Recorder offices. Specific data points needed from these sources are discussed in subsequent tasks of this workplan.
This meeting and our experience conducting economic impact studies and understanding the questions that arise during and after the studies will be used to develop the FAQ (Task 10) that can be posted on the Airport' websites and used when communicating with on -site businesses, government officials, and the public.
Kimley-Horn will prepare meeting materials, including example surveys, list of potential topics to be assessed as unique impacts, a draft FAQ document, and an agenda for the meeting. Following the meeting, written summaries of the results including decisions made, follow-up action items, and other critical data obtained during the meeting will be provided to the Airport for review and comment.
Kimley-Horn Team Tasks:
• Schedule and prepare for a kick-off meeting
• Compile example surveys
• Prepare draft distribution letters
• Develop draft agenda
• Provide Airport with list of data needs
• Prepare draft FAQ document for Airport's review
• Conduct virtual kick-off meeting
• Prepare meeting summary
Airport Tasks:
• Compile data needed by Kimley-Horn team for study
• Confirm consensus on terminology
• Review draft FAQ document and provide comments
• Review example surveys and provide comments
• Review meeting agenda and summary and provide comments • Review proposed list of topics to be assessed as unique impacts (Task 7) Deliverables:
• Example surveys and draft distribution letters
• Agenda and meeting summary
• Draft and final FAQ document
• Preliminary list of topics to be assessed as unique impacts (Task 7) Task 2: Conduct Surveys and Collect Data for Direct On -airport Impacts, Tax Impacts, and Valuation of Based Aircraft
Accurate data is critical to the success of any economic impact study, making data collection among the most important tasks of such an effort. Given that much of the data can only be obtained from primary sources such as airport staff, tenants, and reliant businesses, surveys are typically the primary instrument through which economic data is obtained. Surveys are typically customized based on Page - 9 - Kimley-Horn and Associates, Inc
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whether the audience contributes to on -airport activities (airport administration or tenants) or off - airport activities (visitor spending and non -aviation businesses). Task 2 will focus on developing surveys targeted towards on -airport activities, while Tasks 3 and 8 will address visitor spending and off -airport non -aviation businesses, respectfully.
Task 2.1: Gather Data for Direct On -airport Impacts
Airport Administration Impacts
As the sponsor of the study, the initial data collection from the Airport will be obtained during or immediately after the kick-off meeting. Prior to the kick-off meeting, Kimley-Horn will provide a data request to the Airport representative to complete prior to the site visit. The data included in this request will be the basis for the subsequent surveys that will be conducted at the Airport and is anticipated to include:
• Airport administration employment and payroll for 2024 • Airport operating expenditures for 2024
• Annual Airport capital expenditures for 2021-2024
• Annual Airport fuel sales records for 2021-2024
• National Based Aircraft Inventory data — detail reports including aircraft type and tail number • 2024 annual operational counts and/or flight tracking data (to be used in Task 3) • List of on -site business tenants — with employment estimates for each (as back-up) • List of businesses that base aircraft at the Airport, as available • Tax information (discussed further in Task 2.2)
Annual airport capital expenditures and fuel sales data will be requested for the four years 2021-2024 to accommodate for any significant variations in a single year activity (i.e., large runway construction project increased capital spending but reduced fuel sales). The values will be averaged to represent a `typical' year for each facility. From these `average' expenditures, direct employment and payroll will be estimated using the IMPLAN econometric model, representing the construction jobs supported by those airport improvement projects.
Airport Business Tenant Impacts and FAO Document
In addition to the activities of the Airport administration, business tenants make substantial contribution to total on -airport impacts. Therefore, a Business Tenant Survey will be developed to collect information necessary to model total impacts. Businesses anticipated to be surveyed include all on -site aviation or aerospace businesses and all non -aviation business tenants that closely support aviation activity (e.g., rental cars).
It is essential that the Airport's businesses fully cooperate by providing the type of business and number of employees at a minimum, with a request to provide other information such as payroll (wages and benefits), capital expenditures, taxes paid, and other beneficial data. Kimley-Hom will not request tenant revenues or output because many businesses consider such data proprietary. Instead, output will be estimated using the IMPLAN model based on the number of employees and business type. Each business will also be asked if they have any examples of activities or services that would help demonstrate the unique contributions that the Airport has on the communities and region to start building the platform to conduct Task 7.
To facilitate participation in the data collection effort, an FAQ document will be developed prior to the on -site visit. The exact content of the document will be determined during the kick-off meeting, but Kimley-Hom anticipates it will describe the purpose and background of the study, summarize the project process and anticipated results, and explain how tenant data will be used. The FAQ document Page -10 - Kimley-Horn and Associates, Inc
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will include consistent basic information between all four study airports (i.e., purpose and process of the study, request for business participation) but will then be tailored to discuss specific considerations at each airport (i.e., CVH is developing an airport economic impact study to quantify the positive benefits aviation has on the community) Kimley-Horn recommends the FAQ document specifically highlight that individual tenant data will not be presented in any report, and the results of the study will be aggregated at an airport -wide level.
All surveys will be developed in an online platform with a URL link provided in the distribution letter.
In addition, it is recommended that a hardcopy and electronic fillable PDF form versions be created for the tenant surveys to allow business representatives to complete the surveys prior to or during the on - site visit.
Site Visits and Data Collection
Once the surveys are finalized and disseminated to the appropriate business representatives, Kimley- Horn will conduct in -person site visits at each study airport. In -person site visits increase the visibility of the study among business tenants; and, in a sense, put a face to a name for survey recipients, thereby improving overall participation. Each site visit is expected to last one day and include multiple components, described in further detail below.
• Airport Administration staff meeting: The site visit will begin with a meeting between Airport administration staff, including the Airport manager and a member of the Kimley- Horn team. During the meeting, data from the request discussed above will be collected if they have not been confirmed via email prior to the visit. Kimley-Horn will then confirm the list of on -site business tenants, contact information for their representatives, and estimate of tenant employment provided by Airport staff. Additionally, Kimley-Horn staff will discuss the following items with Airport staff to gather contextual information needed for subsequent parts of the study.
o Aeronautical activities in 2024 to determine if they are representative of typical activities at each airport (i.e., no significant disruptions) o Unique impact topics to be explored in Task 7
o Businesses that frequently rely on the Airport to conduct business • Business Tenant meeting(s): Following the Airport administration meeting, a member of the Kimley-Horn team will meet with on -site business representatives to gather tenant survey responses. The Airport administration staff may schedule meetings with business tenant representatives at the Airport administration office, or Kimley-Horn can visit tenants at their respective place of business. Regardless, Kimley-Horn asks that Airport staff be present in the meetings to make introductions and facilitate coordination between our team and business representatives. During each tenant meeting, a member of the Kimley-Horn team will administer the tenant survey.
• Airport Tour and Photos: Economic impact study deliverables are better received when they are customized to include Airport -specific images and branding. As such, Kimley- Horn will conduct a tour of the Airport during the site visit to take up to date photos of the Airport to be used in the toolkit (Task 10). Alternatively, each Airport may provide marketing -level photos of their facilities and the activities that occur to be used in the deliverables.
Airport representatives will be asked to coordinate their schedules to allow Kimley-Horn staff to conduct the site visits on consecutive days with the other airports in the study, reducing travel expenses. Kimley-Horn asks Airport staff to notify all business tenants of the visit a minimum of two Page - 11 - Kimley-Horn and Associates, Inc
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times prior to the meeting through their own existing distribution channels. To improve transparency and coordination, Kimley-Horn recommends an initial notification be sent at least two weeks prior to the visit to disseminate the FAQ document and tenant surveys, while the second be sent the day prior to the visit to remind representatives of the meeting. Kimley-Horn will provide draft language for the two initial notifications in addition to the FAQ document.
Following the site visit, Kimley-Horn will compile Airport administration and tenant survey response data into a single spreadsheet for the Airport. If any tenants are unable to complete their survey on the day of the visit, the Airport will be responsible for following up with the business to gather the needed information. If data cannot be collected from tenants during the site visit or subsequent follow-up attempts (within two weeks of Airport contacting the tenant), employment estimates provided by Airport staff will be used to estimate tenant activities.
Once all data is compiled, Kimley-Horn will host a virtual meeting with the Airport to review the direct data obtained through the Airport data request and tenant survey responses. Confirmation of direct data is critical to the study as it directly influences the secondary and total impacts of the Airport. If direct data is believed to be inaccurate, Airport staff will be asked to provide corrected information or contact the business tenant to correct the issue.
Assumptions:
It is anticipated the data year will be 2024, the most recent full year of available data, given the proposed project kick-off of January 2025.
Kimley-Horn Team Tasks:
• Finalize and submit Airport data request
• Finalize and submit FAQ document
• Develop draft and final surveys
• Finalize and submit distribution letters
• Develop online, fillable PDF, and hard copy tenant surveys • Conduct on -site visit with Airport administration and business tenants • Develop estimates of direct tenant impacts for the Airport • Summarize direct economic impact data for Airport's review Airport Tasks:
• Complete Airport data request
• Participate in on -site visit
• Approve FAQ document and final tenant surveys for implementation (completed in conjunction with Task 2.1 but listed under Task 10 deliverables) • Notify business tenants of site visit and disseminate FAQ document and tenant surveys • Assist with data collection follow-up for unresponsive businesses • Review and approve draft direct economic impact data
Deliverables:
• Electronic and hardcopy surveys and associated distribution letters (tenants) • FAQ document
• Summary of direct on -airport economic impact data
Task 2.2: Calculate Tax Impacts
Beyond the direct activity of an airport's administration, business tenants, and visitors, additional impacts are generated in the form of tax revenues collected by the local, regional, state, and federal governments. To quantify these impacts, multiple data sources will be consulted to describe the taxable Page - 12 - Kimley-Horn and Associates, Inc
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aviation activities, research relevant taxes collected by each level of government, and identify applicable rates for each tax. Kimley-Horn recognizes the following as known sources of aviation - related tax impacts:
• Income taxes paid by those whose jobs are supported by the Airport and visitor spending (federal and state)
• Taxes contributed by Airport businesses as available from Consultant's data collection • Sales taxes paid by those whose jobs are supported by Airport and visitor spending (state, county and local)
• Sales taxes paid by visitors (lodging/retail/rental cars/other) (state, county, and local) • Possessory income taxes from hangar, facility, and land leases • Vessel taxes by aircraft owners
As part of the Airport data request described in Task 2.1, Kimley-Horn will ask Airport representatives to coordinate with their respective City Finance offices and Assessor -County Clerk -Recorder offices to provide historical tax data needed to model the above taxes, including:
• Possessory income tax rates and associated revenue records (2020-2024) • Vessel tax rates and associated revenue records (2020-2024) • Aviation fuel sales records and fuel taxes collected at the Airport (2020-2024) • New aircraft sales tax receipts (2020-2024)
The following scope of services assumes the above listed data will be provided to Kimley-Horn for analysis. If such data cannot be furnished by the City Finance offices and Assessor -County Clerk - Recorder offices, the corresponding tax impact will not be calculated as current and accurate tax receipts cannot be reliably gathered from other sources.
Similar to the capital expenditures and fuel sales records described in Task 2.1, multiple years of historic data is requested to complete the tax analysis to account for variations that could be caused by industry disruptions. Possessory, vessel, fuel sales, and aircraft sales tax impacts will therefore represent average impacts generated by the Airport between 2020-2024, while income and sales taxes will represent impacts generated by 2024 on -airport and visitor spending activities.
Once the background research has been conducted and the historic data collected, total tax impacts will be calculated using the IMPLAN model. Income and sales taxes will be modeled using the direct impacts captured in Tasks 2.1 and 3 as inputs. Vessel and Possessory taxes will be modeled using rates and revenue records provided by Assessor -County Clerk -Recorder offices. The total tax impacts will be separated into local and state sales taxes paid by companies, visitors and employees; state and federal income taxes paid by companies and employees; Social Security taxes paid by companies and employees, and other tax contributions (fuel taxes, possessory taxes, vessel taxes, sales taxes for new aircraft purchases. The results of the analysis will be communicated through a draft chapter to be included in the final technical report (Task 10).
Kimley-Horn Team Tasks:
• Research taxable aviation activities, relevant taxes collected by federal, state, regional (county and special district), and local governments, and applicable tax rates • Develop estimates of total tax impacts
• Summarize the tax analysis results to be documented in technical report Airport Tasks:
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• Coordinate with City finance offices and Assessor -County Clerk -Recorder offices to obtain new aircraft sales tax receipts, and possessory income and aircraft vessel tax rates and 2020- 2024 revenue records
• Provide 2020-2024 fuel sales records (as part of Task 2.1 Airport data request) • Review tax analysis results and provide comments
Deliverables:
• Documentation of the total tax impacts for the Airport in the technical report Task 2.3: Estimate Total Value of Based Aircraft at the Airport Each Airport has a large number of based aircraft that lease storage space and generate operational and economic activity. Every type of based aircraft has a different value depending on age and aircraft model. These values will be determined through review of Assessor -County Clerk -Recorder office data detailing the assessed value of aircraft reported to be based at the Airport. If Assessor office data is not available for the Airport, VREF Aircraft Value Reference Guide data will be purchased, and aircraft values will be estimated based on their age and type. With the based aircraft inventory data provided by the Airport, the Kimley-Horn team will estimate the values and summarize for use in the final technical report. The results of the analysis will be documented in a draft chapter for use in the final technical report (Task 10).
Kimley-Horn Team Tasks:
• Review Assessor -County Clerk -Recorder offices' assessed aircraft valuation data • Purchase one month's access to the VREF Aircraft Value Reference Guide (if Assessor -County Clerk -Recorder office data is not available)
• Estimate value of the based aircraft at the Airport
• Document the values in the technical report
Airport Tasks:
• Provide detailed based aircraft data (either N -numbers or types) • Coordinate with Assessor -County Clerk -Recorder offices to obtain assessed aircraft valuation data, if available
Deliverables:
• Documentation of the value of based aircraft at the Airport in the technical report Task 3: Conduct Surveys and Collect Data for Direct Off -airport Visitor Spending Impacts Visitor spending often accounts for a substantial portion of an airport's total impacts. Visitor spending trends and statistics are often reported by a local or county Tourism Bureau and can be used to estimate the average level of economic activity generated by visitors arriving via air. If such data is available, KH will use the data to estimate an average amount of money spent per visitor per trip (referred to as the visitor spending profile).
Alternatively, current visitor spending impacts can be calculated by surveying visiting pilots and passengers to build a profile of average spending in common spending categories. If current tourism data is not available or sufficient for the Airport, Kimley-Horn will prepare a GA pilot and passenger survey in an online format to allow respondents to quickly and easily complete the survey. These surveys will request trip purpose, trip origin, length of stay, destination, approximate expenditures, and persons per aircraft (including pilots). The survey will include language so that reported spending is attributed to out -of -region visitors so as to capture new money entering the local economy through the Airport.
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Kimley-Horn will develop fully designed posters with a brief explanation of the project, a QR code and survey URL to be posted in the FBO lobby, GA terminal building, pilot's lounge, restaurants, and any other locations with high visibility to incoming or outgoing pilots. The posters will maintain a consistent design between all four study airports but will be customized to discuss each airport and provide a unique link to the survey.
During the site visit, a Kimley-Horn team member will meet with FBO front desk staff to explain the purpose of the GA pilot and passenger survey and provide contact information for answering questions. As the Airport's FBO is privately owned, Airport staff will be asked to coordinate a meeting with FBO management and members of the Kimley-Horn team. In this meeting, Kimley-Horn will coordinate with the FBO staff to place the posters in prominent locations around the airport terminal or FBO lobby. To maximize accuracy of the analysis, Kimley-Horn recommends the GA pilot and passenger survey be deployed as long as possible to gather a statistically valid sample size. Therefore, this task will be initiated at the site visit and run concurrently with other tasks before being completed.
At the conclusion of this task, the survey results will be vetted to remove invalid responses and averaged to calculate the visitor spending profile. Then, using the operational data provided by the Airport in Task 2.1, direct visitor spending impacts for the Airport will be summarized and sent to Airport staff for review and comment. This review is critical so that the data provided by others are appropriate based on knowledge of the various activities at the Airport.
Kimley-Horn Team Tasks:
• Review tourism data, if available
• Develop GA pilot and passenger survey posters and postcards • Develop online GA pilot and passenger survey
• Meet with FBO management and FBO/Airport front desk staff to promote GA pilot and passenger survey
• Develop estimates of visitor spending and number of visitors • Summarize direct visitor spending impact data for the Airport's review Airport Tasks:
• Coordinate with FBO management to place posters in FBO or airport terminal lobbies • Approve GA pilot and passenger survey for implementation • Coordinate with FBO and Airport front desk staff to promote GA pilot and passenger survey • Review draft visitor spending impact data
Deliverables:
• GA pilot and passenger survey poster and postcards
• Summary of visitor spending impacts
Task 4: Estimate Secondary Impacts
Direct on -airport and visitor spending activities generate secondary impacts as money spreads from the Airport to suppliers and workers in the community. Indirect and induced impacts, collectively referred to as secondary impacts, are calculated using the IMPLAN economic model. During the kick-off meeting, Kimley-Hom will discuss and determine the study region to be used to calculate secondary impacts.
IMPLAN data will be purchased for the study region of Monterey, San Benito, and Santa Cruz Counties. As an option, Santa Clara County can be included in the IMPLAN dataset at no extra cost to reflect the close economic and social relationship between the Monterey Bay area and the southern San Francisco Bay area. The data is presented at both the county -specific level and as a combined region, Page - 15 - Kimley-Horn and Associates, Inc
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allowing secondary impacts to be modeled for the immediate county or the larger region. Modeling at a regional level captures secondary impacts that may not be included in a county -specific analysis (i.e. an aviation supplier in Monterey County will not be included if impacts are only modeled for San Benito County). The Airport can select a region that is different from the other three study airports so long as the IMPLAN dataset does not exceed 5 total counties. Once the study region is selected, Kimley-Horn will calibrate the IMPLAN model and calculate secondary impacts using the direct data collected in Tasks 2 and 3 as inputs.
Kimley-Horn Team Tasks:
• Calibrate IMPLAN model for the Airport's preferred study region that includes Monterey, San Benito, and Santa Cruz counties, or another region determined in the kick-off meeting to estimate indirect and induced impacts for the direct inputs identified in Task 2 • Document the results of the indirect and induced impacts analysis in the technical report Airport Tasks:
• None
Deliverables:
• Documentation of the results of the indirect and induced impacts analysis in the technical report Task 5: Determine Total Impacts
The total annual economic impacts of the Airport are determined by summing the prior categories or types of impact (direct on -airport, direct visitor spending, indirect, and induced impacts [or secondary impacts]) and by impact measure (employment, payroll, and output) as previously outlined in Task 1.
Kimley-Horn Team Tasks:
• Document the results of impacts for types of impact and impact measure to derive total annual economic impacts in the technical report
Airport Tasks:
• None
Deliverables:
• Documentation of the results of the total impacts analysis for the Airport in the technical report Task 6: Calculate Impact on Nearby Real Estate
Airports can impact property values in the immediate surrounding area, whether positively, where warehouse or commercial real estate may be more valuable due to their proximity to a transportation hub, or negatively, where houses may be less valuable due to their exposure to aircraft noise. Kimley- Horn will evaluate how a residential property's value is impacted by its proximity to the Airport using county assessed home values and Airport -provided noise contours.
To evaluate these impacts, Kimley-Horn will develop a GIS overlay based on the most recent noise contours for the Airport depicting the 55, 60, and 65 decibel (dB) CNEL contours, as available. New noise contours will not be developed as part of this analysis. Then, using property valuation data obtained from the Assessor -County Clerk -Recorder offices of Monterey, San Benito, and Santa Cruz Counties, a sample of property values will be taken in each contour boundary to determine the average home value. If noise contours are not available or do not extend off Airport property, Kimley-Horn will examine the values of homes inside a one -miles radius of the Airport property line. Subsections set at one -quarter and one-half mile radii will help determine the relationships between home prices and the proximity to the Airport.
Airport representatives will be asked to provide the most recent noise contours in a GIS shapefile or other format capable of being traced to develop a GIS overlay. The Airport will also be asked to Page - 16 - Kimley-Horn and Associates, Inc
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initiate and facilitate coordination between the Kimley-Horn team and the Assessor -County Clerk - Recorder offices to gather property valuation data. If such data is not available, the Kimley-Horn team will use commercially available house pricing data (e.g., Zillow), understanding it will likely produce a smaller sample size and a less comprehensive analysis.
Kimley-Horn Team Tasks:
• Develop GIS layer with Google Earth base to identify properties within 55, 60, and 65 CNEL noise contours for the Airport
• Calculate average residential property values in each noise contour • Document the results of the impacts to real estate analysis in the technical report Airport Tasks:
• Provide most recent noise contours in GIS or another traceable electronic format • Coordinate with Assessor -County Clerk -Recorder offices to obtain property valuation data Deliverables:
• Documentation of the results of the property value impact analysis in the technical report Task 7: Assess Unique Impacts
While the estimation of the direct, secondary, and total economic impacts of the Airport is a primary outcome of the study, this only captures a portion of the overall contributions the Airport makes to its community and the region. Community and social benefits, including specific stories on businesses or other activities provide additional support for the Airport to communicate the total contributions made to the cities and communities. This support is useful as the Airport seeks continued investment in capital improvements to continue realizing the substantial benefits that the Airport provides. In Task 7, Kimley-Horn intends to capture stories of the unique qualitative impacts that make the Airport so important in the region.
During the kick-off meeting, suggested topics and other unique stories or qualitative impacts stemming from the operations of the Airport or its on -site businesses will be discussed. Potential topics to be discussed include:
Monterey Bay Tech Hub
Monterey Bay DART
ZeroAvia/AAM Research
Deep Sea Research
Information about unique impacts will also be sought through the surveys that are disseminated to tenants, visitors, businesses with based aircraft, and businesses that rely on aviation. During the site visit discussed in Task 2.1, Kimley-Horn will discuss the information provided by the Airport and survey respondents to finalize a list of topics to be reviewed.
To document these unique impacts, Kimley-Horn will develop a single draft chapter that touches on multiple topics with information gathered from desktop research and information gathered during the site visit and tenant outreach process. Each topic overview will be less than one page in length and capture how the activity or tenant contributes to the unique impacts of the Airport. Additional outreach or interviews with tenants will not be conducted beyond the site visit and follow-up process described in Task 2. The stories will be compiled, resulting in a draft chapter to be included in the technical report. Additionally, the stories will be highlighted in the Airport's brochure/primer (Task 10).
Kimley-Horn Team Tasks:
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• Include questions regarding qualitative impacts in the surveys and seek information during interviews with tenants and others
• Conduct desktop research for selected topics
• Develop single draft chapter summarizing multiple story topics Airport Tasks:
• Work with the Kimley-Horn team to identify the specific topics that will be addressed in this task • Provide contact information for key stakeholders, as appropriate, and encourage Airport tenants and known users to provide stories and information on unique benefits Deliverables:
• Single draft chapter with an overview of multiple topics highlighting unique impacts with appropriate quotes and pictures
Task 8: Assess Benefits to Non -Aviation Businesses
In addition to the activities of on -airport businesses and visitors discussed in Tasks 2-5, other non - aviation businesses typically located off -airport rely on aviation for purposes such as shipping goods, receiving manufacturing parts and/or imports, transporting their personnel, and receiving vendors or customers visiting their business via air. To measure the economic activity these businesses generate, an electronic survey will be distributed to as many as 100 businesses that rely on the Airport. During the site visit, Kimley-Horn will ask Airport staff to identify businesses that have based aircraft (but have no employees) at the Airport and other businesses that are known to use the Airport through coordination with FBO staff.
A survey of non -aviation businesses will be developed for electronic distribution. The survey will request information about the number of people the company employs in the county and the percentage of their business that is reliant on aviation. Kimley-Horn will request that the Airport or appropriate City office send the surveys from an official email address to improve response rates.
If these businesses identified by the Airport do not provide a sufficient a pool, additional data will be gathered from ESRI's Business Analyst tool. Business will be identified as being reliant on the Airport based on their North American Industry Classification System (NAICS) classification identified by the Business Analyst tool. Up to 12 industries will be included based on Kimley-Horn's experience identifying businesses that typically use aviation for passenger travel and freight shipments.
Employment data will be collected for each business from ESRI and assumptions of what percentage of the business's total sales are reliant on the Airport. The employment data gathered from the survey and ESRI (if necessary) will then be used to model additional impacts using the IMPLAN model. The results will be used to illustrate the importance of general aviation to the regional economy but will be reported separately from the impacts calculated in Task 2-5 as they cannot be directly attributed to Airport activity.
Kimley-Horn Team Tasks:
• Compile list of businesses with based aircraft and other businesses reliant on the Airport from Tasks 1 and 2
• Develop the off -airport business survey and transmittal letter for distribution email • Depending on the results of the survey, gather business data from ESRI Business Analyst tool to supplement dataset
• Model non -aeronautical business impacts in IMPLAN using survey results Page - 18 - Kimley-Horn and Associates, Inc
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• Document the non -aeronautical business impacts results in the technical report Airport Tasks:
• Provide list of businesses and contact information for those with based aircraft at the Airport or that frequently use the Airport to do business (transport goods, personnel, or customers) • Review the list of businesses that is compiled for survey distribution • Review the off -airport business survey and provide comments • Using an email prepared by Kimley-Horn, distribute the surveys from the Airport's email addresses or another City organization that is likely to increase the response rate on the surveys Deliverables:
• Documentation of the non -aviation business impacts results in the technical report Task 9: Develop and Provide GIS Overlay
The data collected and compiled during the study will be prepared for integration into each City's GIS system. With assistance from Airport representatives, the Kimley-Horn team will coordinate with the City's GIS Administrator to confirm the preferred format. The GIS overlay will include a point feature class of the Airport containing attribute tables with the Airport's name, three letter identifier, latitude of the airport reference point, longitude of the airport reference point, and a primary key. Additional tables associated with the point feature class will be included to contain total economic impacts and other data (direct and secondary impacts) developed during the study. The scope and details of this task will be discussed during the kick-off meeting so that a data set and format can be agreed upon for the Airport. If available, Kimley-Horn asks that the City's GIS Administrator participate in the kick-off meeting to provide input on the GIS deliverable.
Optional Deliverables: Additional GIS Point Feature Classes At the Airport's discretion, Kimley-Horn will develop additional point feature classes to supplement the core study information (direct, secondary, and total economic impacts) presented in this task.
Optional feature classes include:
• Impacts on nearby real estate (Feature class displays noise contour boundaries in feature class) • Unique impacts (Feature class includes links to study documentation [Task 7] or resources if the impact is associated with a specific on -airport business or geographic location) • Airport business tenants on site (not including business -specific impacts or economic information given the proprietary nature of such data)
The optional feature classes would be delivered to the Airport in the same format as the primary feature class described above. Kimley-Horn will discuss with the Airport during the kick-off meeting if additional feature classes are desired and what data would be included therein. Additional feature classes including those listed above or other of the Airport's choosing can be requested but require an addition to the task budget.
Kimley-Horn Team Tasks:
• Coordinate with Airport on preferred format of data for integration in City GIS system • Discuss data and considerations for GIS integration during kick-off meeting • Develop point feature class for City to integrate into GIS system Airport Tasks:
• Confirm content to be included in point feature class after kick-off meeting and prior to developing the GIS layers
• Coordinate with City's GIS Administrator and invite to the kick-off meeting to provide input on the GIS deliverable
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Deliverables:
• GIS point feature class containing Airport name, identifier, latitude and longitude airport reference points, primary key, and economic impacts (direct, secondary, and total) for integration into City GIS systems
Task 10: Develop an Airport Economic Impact Toolkit
Economic impact studies only benefit airports if their results are effectively communicated to the appropriate audiences. Developing an AEIS toolkit with multiple tools that can be tailored will be essential to reach a wide range of audiences, including elected officials, existing or prospective tenants, local businesses, and the public. In order to assist with economies of scale, the layout of the tools will be the same between the four study airports, but the colors, logos, photos, and information will be tailored to each individual airport. This task identifies the following tools for development:
PowerPoint Presentation
A Microsoft PowerPoint presentation will be developed that provides an easily understandable platform for use in communicating Airport economic, and social and community impacts. This presentation can be structured to include specific messages ("Economics 101" or "Airports are an Economic Engine") but will at a minimum introduce the study and associated terminology, describe the methodology, and present the quantitative and qualitative economic impacts of the Airport. One general template will be provided for all airports included in the larger study, with the specific results of the Airport included in the final presentations. It is anticipated the presentation will include 20-30 slides of content to provide approximately 30 minutes of material. The presentation will be provided in a printable and editable electronic PowerPoint format (.pptx).
Technical Report
The technical report will be the primary method of communicating the results of the study to its intended audiences, documenting the analyses described in each task. A unique technical report will be developed for the Airport to document the direct, secondary, and total impacts as well as the unique stories and attributes that support the Airport's contribution to their communities. The technical report will summarize the methodology, data collection, and total impacts, as well as the impacts to nearby real estate and the benefits to non -aviation businesses. To achieve economies of scale, common elements of the technical report will be shared between all airports in the study. Potential sections to be shared include the definition of economic terms, description of the study data collection process (i.e. surveys), and modeling methodology. The technical report will include a fact sheet summarizing the Airport's based aircraft and operational activity for 2024, representing a `typical day at the Airport.' It is anticipated the technical report will be approximately 20-30 pages in length to include the narrative and graphics developed as draft chapters throughout the course of the project. The technical report will be provided in a printable electronic format, preferably PDF.
Executive Summary
Executive summaries are typically used to quickly and effectively communicate the results of an impact for a wide range of audiences. As such, Kimley-Horn will develop a text -oriented executive summary with narrative and graphics customized for the Airport to briefly summarize the process and methodology of the study and present the impacts of the Airport. The executive summary will also include highlights of unique impacts assessed in Task 7. The executive summary will be provided as a preface to the technical report in a printable electronic format, preferably PDF. However, the Executive Summary will be formatted within the technical report in such a way to allow it to be extracted as a standalone document, if desired.
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Primer/Brochure
A professionally designed and graphically focused primer or brochure will be developed for the Airport, summarizing the study results in a user friendly and non -technical format. It is expected that a common primer/brochure template will be developed for all four study airports, with similar graphical themes, structure, and messaging of common components (i.e., economic terminology, project methodology). From this template, the primer/brochure will be customized to include Airport -specific photos, messaging, and economic impacts. As available, pictures will be used specific to the Airport, as well as the Airport's logo and colors. The primer/brochure will describe the technical report and direct, secondary, and total economic impacts, with additional information on how to use the study results. The primer/brochure will be provided in a printable electronic format, preferably PDF. The primer/brochure will be prepared in InDesign for graphic purposes.
FAQ Document
An FAQ document will be developed for dissemination in Task 2.1 and included in the overall toolkit.
The contents of the FAQ document will be determined in Task 1. The FAQ document will be provided in a printable electronic format, preferably PDF. The FAQ document will be similar in structure for all four study airports but will be tailored to discuss specific considerations at the Airport.
Regional Overview
Kimley-Horn will develop a common `regional overview' brochure describing the combined total economic impacts of all four study airports. This component will acknowledge the unique relationships the four airports have in the larger region given their overlapping catchment area and market base in the Monterey Bay area. The regional overview will be documented as a standalone brochure. The brochure will use similar design elements to the airport -specific primer/brochure but will be customized to more easily differentiate between the products. The regional overview brochure will be provided in a printable electronic format such as a PDF. Like the primer/brochure, the regional overview brochure will be prepared in InDesign for graphic purposes.
Optional Deliverable: Animated Flight i\fap
An airport's `reach' can sometimes be difficult for members of the community to understand if they do not regularly use the goods and services provided by the Airport or its tenants. Illustrating the geographic connections made by aircraft operations can help demonstrate the value the Airport brings to the community it serves. In this optional deliverable, Kimley-Horn will provide an animated map that depicts routes flown by aircraft to and from the Airport using data collected by the Federal Aviation Administration's (FAA) Traffic Flow Management System Counts (TFMSC) system. The animated map will be provided in a video file (.MP4) file format and can be included in the Airport PowerPoint or GIS Overlay if the Airport wishes. The animated flight map can be developed at an additional cost to the originally submitted budget.
Kimley-Horn Team Tasks:
• Prepare draft Airport -specific PowerPoint presentation for Airport's review • Prepare draft combined Technical Report in PDF for Airport's review, including Fact Sheet summarizing based aircraft and operations
• Prepare draft Airport -specific Executive Summary in PDF for Airport's review • Prepare draft Airport -specific Primer/Brochure in PDF for Airport's review • Prepare draft Regional Overview Primer/Brochure in PDF • Prepare final Airport -specific presentation in PowerPoint format • Prepare final Airport -specific Technical Report in PDF, including Fact Sheet Page - 21 - Kimley-Horn and Associates, Inc
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• Prepare final Airport -specific Executive Summary in PDF • Prepare final Airport -specific Primer/Brochure in PDF • Prepare final Regional Overview Primer/Brochure in PDF Airport Tasks:
• Review draft PowerPoint presentation and provide comments • Review draft Technical Report, including Fact Sheet, and provide comments • Review draft Executive Summary and provide comments
• Review draft Primer/Brochure and provide comments
Deliverables:
• Airport -specific presentation in PowerPoint format (one per Airport) • Airport -specific Technical Report in PDF (one per Airport) • Airport -specific Executive Summary in PDF (one per Airport) • Airport -specific Primer/Brochure in PDF (one per Airport) • Regional Overview Primer/Brochure in PDF
Task 11: Documentation and Coordination
Documentation will be prepared and coordination efforts undertaken throughout the course of the AEIS for successful completion. Draft chapters will be developed for key components of the study and provided to the Airport for comment. At the conclusion of the study, the draft chapters will be compiled into a single technical report for the Airport containing a narrative that details the study approach, methodologies used, data gathering processes, and overall survey methods. As discussed in Task 10, the technical report will include the following components, each of which will be contain information specific to the Airport:
• Direct, indirect, and induced impacts as they relate to economic activity (output), earnings (payroll), and employment supported by the Airport
• Graphic and written descriptions of the Airport's economic value to the local community • A Fact Sheet that includes the number of based aircraft and annual aircraft operations • Supporting illustrations, including charts, graphs, tables, and maps to support the study findings and narrative text
• Unique stories about economic, social and community benefits (qualitative data) The PowerPoint presentation developed in Task 10 will serve as the basis for a formal presentation to the City of Hollister Airport Advisory Commission or the City of Hollister City Council. A Kimley- Horn team member will virtually attend up to one meeting per Airport to present the results of the study and answer questions as appropriate.
All documentation will be provided in electronic printable format. With the exception of the business tenant surveys discussed in Task 2.1, no hard -copy deliverables will be provided.
At the Airport's request, Kimley-Horn can assist in printing hard copies of the technical report, primer/brochure, or other deliverable. However, any printing beyond the business tenant surveys will require an addition to the task budget.
It is anticipated that bi-weekly coordination calls will be held between the Kimley-Horn team and the four airports to discuss the study progress, any issues, and data needs, as appropriate given the timing of the calls. These calls will help to make certain constant coordination and progress toward completion of the study. Other coordination efforts will include calls to discuss reviews of draft documentation and any other issues that arise relative to the AEIS.
Kimley-Horn Team Tasks:
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• Conduct virtual presentation to City of Hollister Airport Advisory Commission or the City of Hollister City Council.
• Conduct bi-weekly conference calls with the four airports Airport Tasks:
• Provide notice of the dates of City of Hollister Airport Commission or City of Hollister City Council.
• Participate in bi-weekly conference calls with the Kimley-Horn team Deliverables:
No additional deliverables
Additional Information
1. Assumptions:
a. The scope and fee are based on the participation of the four airports (Salinas, Hollister, Watsonville, and Marina). If one or more airports choose to not participate in the study then the project fee will be revised to reflect the accurate price for expenditures to be split between the four airports.
2. Additional Services
a. Any services not specifically provided for in the above scope will be billed as additional services and performed at our then current hourly rates. Additional services may include:
i. Optional Deliverables:
1. Additional GIS Point Feature Classes (Task 9)
2. Animated Flight Map (Task 10)
ii. Future economic impact projection: Kimley-Horn will estimate the Airport's future economic impact if certain conditions occur (i.e., hangar development, additional business tenant, increase air traffic, etc.)
3. Owner's Responsibilities
a. Provide copies of all existing pertinent records/reports/studies in its possession. b. Assist in site visit and business tenant meetings.
c. Participate in meetings and planning activities.
d. Timely review and response (2 weeks from receipt).
e. Print hard copies of deliverables for their own use. f. Perform additional responsibilities as detailed in contract terms and conditions and above scope of work.
g. The Kimley-Horn team and its Subconsultants shall be entitled to rely upon the accuracy and completeness of all surveys, reports and information furnished by the Client.
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EXHIBIT B
COMPENSATION
a. Total Compensation. The total obligation of City under this Contract shall not exceed $38,210.00. b. Basis for Payment. Payment(s) to Consultant for services performed under this Contract shall be made as follows and shall include payment for reimbursable expenses: Lump Sum Page - 24 - Kimley-Horn and Associates, Inc
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EXHIBIT "C"
SCHEDULE OF PERFORMANCE
Services shall commence immediately upon execution of this Contract. All services performed under the provisions of this Contract shall be completed in accordance with the following schedule: Assumes that all work will be complete, and this Task closed out within nine months of the NTP issuance, contingent on timely data collection and reviews by the Airport.
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NAME
Erin Sheelen
Patrick Heaton
Drew Latouche
Jack Park
Georgia Twyerould
Eugenia Larmore
Lois Kramer
Pam Keidel-Adams
EXHIBIT D
PROJECT STAFF
TITLE
Project Manager
Deputy Project Manager
Project Analyst
Project Analyst
Project Professional
Economist
Tax Specialist
Quality Assurance
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EXHIBIT E
Insurance Requirements
Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder and the results of that work by the Contractor, his agents, representatives, employees or subcontractors.
MINIMUM SCOPE AND LIMIT OF INSURANCE
Coverage shall be at least as broad as:
1. Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on an "occurrence" basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $2,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.
2. Automobile Liability: ISO Form Number CA 00 01 covering any auto (Code 1), or if Contractor has no owned autos, hired, (Code 8) and non -owned autos (Code 9), with limit no less than $1,000,000 per accident for bodily injury and property damage.
3. Workers' Compensation: as required by the State of California, with Statutory Limits, and Employer's Liability Insurance with limit of no less than $1,000,000 per accident for bodily injury or disease.
4. Professional Liability (Errors and Omissions): Insurance appropriates to the Contractor's profession, with limit no less than $2,000,000 per occurrence or claim, $2,000,000 aggregate. (If applicable — see footnote next page)
If the Contractor maintains broader coverage and/or higher limits than the minimums shown above, the City requires and shall be entitled to the broader coverage and/or the higher limits maintained by the contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.
Other Insurance Provisions
The insurance policies are to contain, or be endorsed to contain, the following provisions:
Additional Insured Status
The City, its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Contractor including materials, parts, or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the Contractor's insurance (at least as broad as ISO Form CG 20 10 11 85 or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 if a later edition is used).
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Primary Coverage
For any claims related to this contract, the Contractor's insurance coverage shall be primary and non-contributory and at least as broad as ISO CG 20 01 04 13 as respects the City, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Contractor's insurance and shall not contribute with it. This requirement shall also apply to any Excess or Umbrella liability policies.
Umbrella or Excess Policy
The Contractor may use Umbrella or Excess Policies to provide the liability limits as required in this agreement. This form of insurance will be acceptable provided that all of the Primary and Umbrella or Excess Policies shall provide all of the insurance coverages herein required, including, but not limited to, primary and non-contributory, additional insured, Self -Insured Retentions (SIRs), indemnity, and defense requirements. The Umbrella or Excess policies shall be provided on a true "following form" or broader coverage basis, with coverage at least as broad as provided on the underlying Commercial General Liability insurance. No insurance policies maintained by the Additional Insureds, whether primary or excess, and which also apply to a loss covered hereunder, shall be called upon to contribute to a loss until the Contractor's primary and excess liability policies are exhausted.
Notice of Cancellation
Each insurance policy required above shall provide that coverage shall not be canceled, except with notice to the City.
Waiver of Subrogation
Contractor hereby grants to City a waiver of any right to subrogation which any insurer of said Contractor may acquire against the City by virtue of the payment of any loss under such insurance. Contractor agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.
Self -Insured Retentions
Self -insured retentions must be declared to and approved by the City. The City may require the Contractor to purchase coverage with a lower retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention. The policy language shall provide, or be endorsed to provide, that the self -insured retention may be satisfied by either the named insured or City. The CGL and any policies, including Excess liability policies, may not be subject to a self -insured retention (SIR) or deductible that exceeds $25,000 unless approved in writing by City. Any and all deductibles and SIRs shall be the sole responsibility of Contractor or subcontractor who procured such insurance and shall not apply to the Indemnified Additional Insured Parties. City may deduct from any amounts otherwise due Contractor to fund the SIR/deductible.
Policies shall NOT contain any self -insured retention (SIR) provision that limits the satisfaction of the SIR to the Named. The policy must also provide that Defense costs, including the Allocated Loss Adjustment Expenses, will satisfy the SIR or deductible. City reserves the right to obtain a copy of any policies and endorsements for verification.
Acceptability of Insurers
Insurance is to be placed with insurers authorized to conduct business in the state with a current A.M.
Best's rating of no less than A:VII, unless otherwise acceptable to the City.
Claims Made Policies (note — should be applicable only to professional liability, see below) If any of the required policies provide claims -made coverage:
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1. The Retroactive Date must be shown, and must be before the date of the contract or the beginning of contract work.
2. Insurance must be maintained, and evidence of insurance must be provided for at least five (5) years after completion of the contract of work.
3. If coverage is canceled or non -renewed, and not replaced with another claims -made policy form with a Retroactive Date prior to the contract effective date, the Contractor must purchase "extended reporting" coverage for a minimum of five (5) years after completion of work.
Verification of Coverage
Contractor shall furnish the City with original certificates and amendatory endorsements or copies of the applicable policy language effecting coverage required by this clause and a copy of the Declarations and Endorsements Pages of the CGL and any Excess policies listing all policy endorsements. All certificates and endorsements and copies of the Declarations & Endorsements pages are to be received and approved by the City before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the Contractor's obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time. City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.
Special Risks or Circumstances
City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.
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STAFF REPORT
HOLLISTER CITY COUNCIL
MEETING DATE: March 16, 2026
REPORT # Finance -2026-15
AGENDA ITEM: A RESOLUTION APPROVING AN ENGAGEMENT LETTER WITH
CHAVAN & ASSOCIATES LLP FOR INDEPENDENT FINANCIAL AUDITING
SERVICES AND AUTHORIZING THE MAYOR TO EXECUTE THE ENGAGEMENT
LETTER ON BEHALF OF THE CITY
DEPARTMENT: Adminstrative Services
DEPARTMENT HEAD: Jessica O'Connell, Finance Director
COUNCIL NEXT STEPS: Adopt a resolution approving the engagement letter with Chavan & Associates LLP to provide independent financial auditing services for the City of Hollister and authorize the Mayor to sign the engagement letter on behalf of the City.
DISCUSSION: The City of Hollister is required to obtain an independent audit of its financial statements in accordance with generally accepted auditing standards, Government Auditing Standards, and other applicable federal and state requirements.
These audits provide assurance regarding the City's financial reporting and compliance with applicable laws and regulations and culminate in the issuance of the City's Annual Comprehensive Financial Report (ACFR).
Staff has engaged Chavan & Associates LLP, a firm of Certified Public Accountants with experience in governmental auditing, to serve as the City's independent financial auditors.
The engagement letter outlines the scope of services to be provided, which includes the annual audit of the City's financial statements, compliance and Single Audit procedures where applicable, and related professional services necessary to complete the City's financial reporting requirements.
As part of the engagement, the firm will also perform agreed -upon procedures related to the City's GANN Limit, which establishes the appropriations limitation required under Article XIII-B of the California Constitution. These procedures assist the City in verifying that the appropriations limit has been properly calculated and adopted by City Council resolution.
The engagement will cover fiscal years ending June 30, 2023, June 30, 2024, and June 30, 2025, with an option to extend services for fiscal year 2026.
The City's Purchasing Ordinance (HMC 3.06.270) provides an exception to the competitive procurement process for certain professional services, including financial auditing services. Because financial auditors are specialized professionals and must maintain independence in performing audit services, these services are exempt from the standard competitive bidding requirements.
Approval of the engagement letter will allow the City to formally retain Chavan &
Associates LLP as the City's independent financial auditors and ensure that required financial audits and related reporting obligations are completed in accordance with applicable professional standards.
FISCAL IMPACT: The engagement letter with Chavan & Associates LLP establishes an all-inclusive maximum fee schedule for the City's financial auditing services. The maximum annual fees are $73,000 for Fiscal Year 2023 and $64,000 for each of Fiscal Years 2024, 2025, and 2026 (optional), which includes services for the City's financial statement audit, Single Audit procedures, GANN Limit agreed -upon procedures, and related reporting.
Funding for these services is included in the Administrative Services Department's adopted budget. Any optional year will be incorporated into future annual budgets and remain subject to City Council appropriation.
PREVIOUS COUNCIL OR COMMISSION ACTION: N/A
CEQA: N/A
ATTACHMENTS:
1. 20260316_FIN_Financial Auditors Resolution
2. 6302026 City of Hollister_Engagement Letter
3. GANN26 City of Hollister
RESOLUTION NO. 2026-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HOLLISTER
APPROVING AN ENGAGEMENT LETTER WITH CHAVAN &
ASSOCIATES LLP TO PROVIDE INDEPENDENT FINANCIAL AUDITING
SERVICES AND AUTHORIZING THE MAYOR TO EXECUTE THE
ENGAGEMENT LETTER
WHEREAS, the City of Hollister is required to obtain annual independent audits of its financial statements in accordance with generally accepted auditing standards, Government Auditing Standards, and other applicable federal and state requirements; and
WHEREAS, these audits provide assurance regarding the City's financial reporting and compliance with applicable laws and regulations and culminate in the issuance of the City's Annual Comprehensive Financial Report (ACFR); and WHEREAS, the City desires to retain the services of a qualified firm of Certified Public Accountants to serve as the City's independent financial auditors and to perform required audit services, including the annual audit of the City's financial statements, compliance testing, Single Audit procedures where applicable, and related professional services; and WHEREAS, Chavan & Associates LLP has submitted an engagement letter outlining the scope of financial auditing services to be provided to the City for the fiscal years ending June 30, 2023, June 30, 2024, and June 30, 2025, with an option to extend services for fiscal year 2026; and
WHEREAS, the engagement also includes agreed -upon procedures related to the City's appropriations limitation (GANN Limit) as required by Article XIII-B of the California Constitution; and
WHEREAS, the City's Purchasing Ordinance (HMC 3.06.270) provides an exception to the competitive procurement process for certain professional services, including financial auditing services, due to their specialized nature; and WHEREAS, the City Council finds it to be in the best interest of the City to approve the engagement letter with Chavan & Associates LLP to provide these professional auditing services.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Hollister hereby:
1. Approves the engagement letter with Chavan & Associates LLP to provide independent financial auditing services for the City of Hollister; and
2. Authorizes the Mayor to execute the engagement letter on behalf of the City of Hollister; and
Resolution No. 2026-XX
3. Authorizes the City Manager and City staff to take such administrative actions as may be necessary to implement this resolution.
PASSED AND ADOPTED, by the City Council of the City of Hollister at a regular meeting held on March 16, 2026, by the following vote:
AYES:
NOES:
ABSTAINED:
ABSENT:
Roxanne Stephens, Mayor
ATTEST: APPROVED AS TO FORM:
Lozano Smith Attorneys at Law
Jennifer Woodworth, MMC, City Clerk Jennifer P. Thompson, City Attorney I, Jennifer Woodworth, MMC, City Clerk of the City of Hollister, do hereby certify that the attached Resolution No. 2026-XX is an original resolution, or true and correct copy of a City resolution, duly adopted by the Council of the City of Hollister at a regular meeting held on March 16, 2026, at which meeting a quorum was present.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Hollister on March 16, 2026.
Jennifer Woodworth, MMC
City Clerk of the City of Hollister
Chavan and Associates, IIp
Certified Public Accountants
March 3, 2026
City of Hollister
327 Fifth Street
Hollister, CA 95023
RE: City Audit Engagement Letter
We are pleased to confirm our understanding of the services we are to provide for the City of Hollister (the "City") for the fiscal years ending June 30, 2023, 2024, and 2025, with an option for 2026. We will audit the financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City and the related notes to the financial statements, which collectively comprise the City's basic financial statements.
In addition, we will audit the City's compliance over major federal award programs each fiscal year. We are pleased to confirm our acceptance and our understanding of this audit engagement by means of this letter. Our audits will be conducted with the objectives of our expressing an opinion on each opinion unit and an opinion on compliance regarding the City's major federal award programs.
The objectives of our audit of the financial statements are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with auditing standards generally accepted in the United States of America (GAAS), and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States of America (GAGAS), will always detect a material misstatement when it exists. Misstatements, including omissions, can arise from fraud or error and are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
The objectives of our compliance audit are to obtain sufficient appropriate audit evidence to form an opinion and report at the level specified in the governmental audit requirement about whether the City complied in all material respects with the applicable compliance requirements and identify audit and reporting requirements specified in the governmental audit requirement that are supplementary to GAAS and Government Auditing Standards, if any, and perform procedures to address those requirements.
Accounting principles generally accepted in the United States of America, (U.S. GAAP), as promulgated by the Governmental Accounting Standards Board (GASB), require that the items noted below be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the GASB, who considers it to Page I1
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be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. As part of our engagement, we will apply certain limited procedures to the required supplementary information (RSI) in accordance with auditing standards generally accepted in the United States of America, (U.S. GAAS). These limited procedures will consist primarily of inquiries of management regarding their methods of measurement and presentation and comparing the information for consistency with management's responses to our inquiries. We will not express an opinion or provide any form of assurance on the RSI. The following RSI is required by U.S. GAAP and will be subjected to certain limited procedures but will not be audited:
1. Management's discussion and analysis.
2. Major fund budget to actual schedules.
3. Pension schedules.
4. Other postemployment benefit schedules.
Supplementary Information Other than RSI
Supplementary information other than RSI will accompany the City's basic financial statements.
We will subject the following supplementary information to the auditing procedures applied in our audit of the basic financial statements and perform certain additional procedures, including comparing and reconciling the supplementary information to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and additional procedures in accordance with U.S. GAAS.
We intend to provide an opinion on the following supplementary information in relation to the financial statements as a whole:
1. Nonmajor fund combining balance sheets and schedules of revenues, expenditures and changes in fund balances.
2. Nonmajor budgetary comparison schedules, as applicable.
3. Fiduciary fund statements, as applicable.
4. General fund combining schedules, as applicable
Also, the document we submit to you may include the following other additional information that will not be subjected to the auditing procedures applied in our audit of the basic financial statements:
1. ACFR introductory section.
2. Statistical tables.
Schedule of Expenditures of Federal Awards
We will subject the schedule of expenditures of federal awards to the auditing procedures applied in our audit of the basic financial statements and certain additional procedures, including Page I2
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Chavan and Associates, IIp
Certified Public Accountants
comparing and reconciling the schedule to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and additional procedures in accordance with auditing standards generally accepted in the United States of America. We intend to provide an opinion on whether the schedule of expenditures of federal awards is presented fairly in all material respects in relation to the financial statements as a whole.
Data Collection Form
Prior to the completion of our engagement, we will complete the sections of the Data Collection Form that are our responsibility. The form will summarize our audit findings, amounts and conclusions. It is management's responsibility to submit a reporting package including fmancial statements, schedule of expenditure of federal awards, summary schedule of prior audit findings and corrective action plan along with the Data Collection Form to the federal audit clearinghouse.
The financial reporting package must be text searchable, unencrypted, and unlocked. Otherwise, the reporting package will not be accepted by the federal audit clearinghouse. We will assist you in the electronic submission and certification. You may request from us copies of our report for you to include with the reporting package submitted to pass -through entities.
The Data Collection Form is required to be submitted within the earlier of 30 days after receipt of our auditors' reports or nine months after the end of the audit period, unless specifically waived by a federal cognizant or oversight agency for audits. Data Collection Forms submitted untimely are one of the factors in assessing programs at a higher risk.
Audit of the Financial Statements
We will conduct our audit in accordance with U.S. GAAS, the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States of America, and the audit requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). As part of an audit of fmancial statements in accordance with GAAS, and in accordance with Government Auditing Standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also complete the following:
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an Page I3
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opinion on the effectiveness of the City's internal control. However, we will communicate to you in writing concerning any significant deficiencies or material weaknesses in internal control relevant to the audit of the financial statements that we have identified during the audit.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
• Conclude, based on the audit evidence obtained, whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for a reasonable period of time.
Because of the inherent limitations of an audit, together with the inherent limitations of internal control, an unavoidable risk that some material misstatements or noncompliance (whether caused by errors, fraudulent financial reporting, misappropriation of assets, detected abuse, or violations of laws or governmental regulations) may not be detected exists, even though the audit is properly planned and performed in accordance with U.S. GAAS and Government Auditing Standards of the Comptroller General of the United States of America. Please note that the determination of abuse is subjective and Government Auditing Standards does not require auditors to detect abuse.
Our responsibility as auditors is limited to the period(s) covered by our audit and does not extend to any other periods.
We will issue a written report upon completion of our audit of the City's basic financial statements. Our report will be addressed to governing body of the City. We cannot provide assurance that unmodified opinions will be expressed. Circumstances may arise in which our report may differ from its expected form and content based on the results of our audit. Depending on the nature of these circumstances, it may be necessary for us to modify our opinions, add an emphasis -of -matter or other -matter paragraph(s) to our auditor's report, or if necessary, withdraw from the engagement. If our opinions on the basic financial statements are other than unmodified, we will discuss the reasons with you in advance. If, for any reason, we are unable to complete the audit or are unable to form or have not formed opinions, we may decline to express opinions or to issue a report as a result of this engagement.
In accordance with the requirements of Government Auditing Standards, we will also issue a written report describing the scope of our testing over internal control over financial reporting and over compliance with laws, regulations, and provisions of grants and contracts, including the results of that testing. However, providing an opinion on internal control and compliance over financial reporting will not be an objective of the audit and, therefore, no such opinion will be expressed.
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Certified Public Accountants
Audit of Major Program Compliance
Our audit of the City's major federal award program(s) compliance will be conducted in accordance with the requirements of the Single Audit Act, as amended; and the provisions of U.S. Office of Management and Budget's (OMB) Uniform Guidance; and will include tests of accounting records, a determination of major programs in accordance with Uniform Guidance, and other procedures we consider necessary to enable us to express such an opinion on major federal award program compliance and to render the required reports. We cannot provide assurance that an unmodified opinion on compliance will be expressed. Circumstances may arise in which it is necessary for us to modify our opinion or withdraw from the engagement.
The Uniform Guidance requires that we also plan and perform the audit to obtain reasonable assurance about whether material noncompliance with applicable laws and regulations, the provisions of contracts and grant agreements applicable to major federal award programs, and the applicable compliance requirements occurred, whether due to fraud or error, and express an opinion on the City's compliance based on the audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Noncompliance with the compliance requirements is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City's compliance with the requirements of the federal programs as a whole.
As part of a compliance audit in accordance with GAAS, and in accordance with Government Auditing Standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks.
Our procedures will consist of determining major federal programs and, performing the applicable procedures described in the U.S. Office of Management and Budget OMB Compliance Supplement for the types of compliance requirements that could have a direct and material effect on each of the City's major programs, and performing such other procedures as we consider necessary in the circumstances. The purpose of those procedures will be to express an opinion on the City's compliance with requirements applicable to each of its major programs in our report on compliance issued pursuant to the Uniform Guidance.
Also, as required by the Uniform Guidance, we will obtain an understanding of the City's internal control over compliance relevant to the audit in order to design and perform tests of controls to evaluate the effectiveness of the design and operation of controls that we consider relevant to preventing or detecting material noncompliance with compliance requirements applicable to each of the City's major federal award programs. Our tests will be less in scope Page I5
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than would be necessary to render an opinion on these controls and, accordingly, no opinion will be expressed in our report. However, we will communicate to you, regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we have identified during the audit.
We will issue a report on compliance that will include an opinion or disclaimer of opinion regarding the City's major federal award programs, and a report on internal controls over compliance that will report any significant deficiencies and material weaknesses identified; however, such report will not express an opinion on internal control.
Management's Responsibilities
Our audit will be conducted on the basis that management acknowledge and understand that they have responsibility:
1. For the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America;
2. For the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error;
3. For identifying, in its accounts, all federal awards received and expended during the period and the federal programs under which they were received;
4. For maintaining records that adequately identify the source and application of funds for federally funded activities;
5. For preparing the schedule of expenditures of federal awards (including notes and noncash assistance received) in accordance with the Uniform Guidance;
6. For designing, implementing, and maintaining effective internal control over federal awards that provides reasonable assurance that the entity is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards;
7. For identifying and ensuring that the entity complies with federal laws, statutes, regulations, rules, provisions of contracts or grant agreements, and the terms and conditions of federal award programs, and implementing systems designed to achieve compliance with applicable federal statutes, regulations, and the terms and conditions of federal award programs;
8. For disclosing accurately, currently, and completely the financial results of each federal award in accordance with the requirements of the award;
9. For identifying and providing report copies of previous audits, attestation engagements, or other studies that directly relate to the objectives of the audit, including whether related recommendations have been implemented;
10. For taking prompt action when instances of noncompliance are identified;
11. For addressing the findings and recommendations of auditors, for establishing and maintaining a process to track the status of such findings and recommendations and taking corrective action on reported audit findings from prior periods and preparing a summary schedule of prior audit fmdings;
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12. For following up and taking corrective action on current year audit findings and preparing a corrective action plan for such findings;
13. For submitting the reporting package and data collection form to the appropriate parties;
14. For making the auditor aware of any significant contractor relationships where the contractor is responsible for program compliance;
15. To provide us with:
a. Access to all information of which management is aware that is relevant to the preparation and fair presentation of the financial statements including the disclosures, and relevant to federal award programs, such as records, documentation, and other matters; b. Additional information that we may request from management for the purpose of the audit;
c. Unrestricted access to persons within the entity from whom we determine it necessary to obtain audit evidence;
d. A written acknowledgement of all the documents that management expects to issue that will be included in the annual report and the planned timing and method of issuance of that annual report; and
e. A final version of the annual report (including all the documents that, together, comprise the annual report) in a timely manner prior to the date of the auditor's report.
16. For adjusting the financial statements to correct material misstatements and confirming to us in the management representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the current year period(s) under audit are immaterial, both individually and in the aggregate, to the financial statements as a whole;
17. For acceptance of nonattest services, including identifying the proper party to oversee nonattest work;
18. For maintaining adequate records, selecting and applying accounting principles, and safeguarding assets;
19. For informing us of any known or suspected fraud affecting the entity involving management, employees with significant role in internal control and others where fraud could have a material effect on compliance;
20. For the accuracy and completeness of all information provided;
21. For taking reasonable measures to safeguard protected personally identifiable and other sensitive information; and
22. For confirming your understanding of your responsibilities as defined in this letter to us in your management representation letter.
With regard to the supplementary information and schedule of expenditures of federal awards (SEFA) referred to above, you acknowledge and understand your responsibility (a) for the preparation of the supplementary information and SEFA in accordance with the applicable criteria, (b) to provide us with the appropriate written representations regarding the supplementary information and SEFA, (c) to include our report on the supplementary information and the SEFA in any document that contains the supplementary information and that indicates that we have reported on such supplementary information and the SEFA, and (d) to present the supplementary information and the SEFA with the audited financial statements, or if the Page I7
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supplementary information and the SEFA will not be presented with the audited financial statements, to make the audited financial statements readily available to the intended users of the supplementary information and the SEFA no later than the date of issuance by you of the supplementary information and the SEFA and our reports thereon.
As part of our audit process, we will request from management, written confirmation concerning representations made to us in connection with the audit.
We understand that your employees will prepare all confirmations we request and will locate any documents or invoices selected by us for testing.
If you intend to publish or otherwise reproduce the financial statements and make reference to our firm, you agree to provide us with printers' proofs or masters for our review and approval before printing. You also agree to provide us with a copy of the final reproduced material for our approval before it is distributed.
Nonattest Services
With respect to any nonattest services we perform, we will not assume management responsibilities on behalf of the City. However, we will provide advice and recommendations to assist City management in performing its responsibilities. At the end of the year, we agree to perform the following:
• Prepare the audited financial statements (ACFR), related note disclosures, required supplementary information, supplementary information (as noted above), the schedule of expenditures of federal awards, and the data collection form. These items will be prepared from information prepared and provided by the City during our audit, such as the City's trial balance.
• Propose adjusting or correcting journal entries to be reviewed and approved by City management.
City management is responsible for (a) making all management decisions and performing all management functions; (b) assigning a competent individual to oversee the services; (c) evaluating the adequacy of the services performed; (d) evaluating and accepting responsibility for the results of the services performed; and (e) establishing and maintaining internal controls, including monitoring ongoing activities.
Our responsibilities and limitations of the nonattest services are as follows:
• We will perform the services in accordance with applicable professional standards, including GAAS, GAGAS, GASB and U.S. GAAP.
• The nonattest services are limited to the services previously outlined above. Our firm, in its sole professional judgment, reserves the right to refuse to do any procedure or take any action Page I8
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that could be construed as making management decisions or assuming management responsibilities, including determining account coding and approving journal entries. Our firm will advise the City with regard to certain positions taken in the preparation of the audited financial statements, but City must make all decisions with regard to those matters.
Government Auditing Standards require that we document an assessment of the skills, knowledge, and experience of management, should we participate in any form of preparation of the basic financial statements and related schedules or disclosures as these actions are deemed a non -audit service.
Audit Administration and Fees
Our all-inclusive maximum fee for these services will be as follows:
Fiscal Year
2023 2024
2025 2026 (opt.)
City Audit $ 50,000
Beginning Balance Procedures 7,500
GANN Limit Review Report 1,000
Single Audit 7,500
City SCO AFTR 4,000
GASB Consultation 3,000
Total All Inclusive Maximum Fees $ 73,000
$ 50,000 $
1,000
7,500
4,000
1,500
$ 64,000 $
50,000 $ 50,000
1,000 1,000
7,500 7,500
4,000 4,000
1,500 1,500
64,000 $ 64,000
Our fees include out-of-pocket costs (such as report reproduction, word processing, postage, travel, copies, telephone, etc.).
Our standard hourly rates vary according to the degree of responsibility involved and the experience level of the personnel assigned to your audit as follows:
Engagement Partner
Associate Partner/Reviewer
Audit Manager
Audit Supervisor
Senior Auditor
Staff Auditor
Administrative
$400 per hour
$300 per hour
$250 per hour
$200 per hour
$150 per hour
$125 per hour
$100 per hour
Our invoices for these fees will be rendered each month as work progresses and are payable on presentation. In accordance with our firm policies, work may be suspended if your account becomes thirty days or more overdue and may not be resumed until your account is paid in full. If we elect to terminate our services for nonpayment, our engagement will be deemed to have been completed upon written notification of termination, even if we have not completed our report.
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You will be obligated to compensate us for all time expended and to reimburse us for all out-of- pocket costs through the date of termination. The above fee is based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the audit. If cooperation is not provided as anticipated and at a level that hinders the progress of the services to be provided, we retain the right to terminate the contract for cause with thirty (30) days' notice. During that time, the City will have the opportunity to provide the cooperation required to complete the audit and C&A may rescind the cancellation.
If the services to be performed by C&A are not performed in an acceptable manner to the City, the City may cancel this contract for cause by providing notice to C&A, giving at least thirty (30) days' notice of the proposed cancellation and the reasons for same. During that time period, C&A may seek to bring the performance of services to a level that is acceptable to the City, and the City may rescind the cancellation if such action is in the City's best interest. Notwithstanding the above provisions, the City may, upon the expiration of thirty (30) days written notice to C&A, terminate the agreement at will. Payment for services or goods received prior to termination shall be made by the City provided those goods or services were provided in a manner acceptable to the City. Payment for those goods and services shall not be unreasonably withheld.
Sheldon Chavan, CPA, is the engagement partner for the audit services specified in this letter.
His responsibilities include supervising Chavan & Associates LLP's services performed as part of this engagement and signing or authorizing another qualified firm representative to sign the audit report.
Other Matters
During the course of the engagement, we may communicate with you or your personnel via fax or e-mail, and you should be aware that communication in those mediums contains a risk of misdirected or intercepted communications.
Regarding the electronic dissemination of audited financial statements, including financial statements published electronically on your Internet website, you understand that electronic sites are a means to distribute information and, therefore, we are not required to read the information contained in these sites or to consider the consistency of other information in the electronic site with the original document.
Professional standards prohibit us from being the sole host and/or the sole storage for your financial and non -financial data. As such, it is your responsibility to maintain your original data and records and we cannot be responsible to maintain such original information. By signing this engagement letter, you affnin that you have all the data and records required to make your books and records complete.
The audit documentation for this engagement is the property of Chavan & Associates LLP and constitutes confidential information. However, we may be requested to make certain audit documentation available to state and federal agencies and the U.S. Government Accountability
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Certified Public Accountants
Office pursuant to authority given to it by law or regulation, or to peer reviewers. In accordance with the requirements of Government Auditing Standards, a copy of our latest external peer review report is available on our website. If requested, access to such audit documentation will be provided under the supervision of Chavan & Associates LLP's personnel. Furthermore, upon request, we may provide copies of selected audit documentation to these agencies and regulators.
The regulators and agencies may intend, or decide, to distribute the copies of information contained therein to others, including other governmental agencies. We agree to retain our audit documentation or work papers for a period of at least seven years from the date of our report.
We will be available during the year to consult with you on financial management and accounting matters of a routine nature. You agree to inform us of facts that may affect the financial statements of which you may become aware during the period from the date of the auditor's report to the date the financial statements are issued.
During the course of the audit, we may observe opportunities for economy in, or improved controls over, your operations. We will bring such matters to the attention of the appropriate level of management, either orally or in writing. At the conclusion of our audit engagement, we will communicate to management and the Board the following significant items from the audit:
• Our view about the qualitative aspects of the City's significant accounting practices; • Significant difficulties, if any, encountered during the audit; • Uncorrected misstatements, other than those we believe are trivial, if any; • Disagreements with management, if any;
• Other findings or issues, if any, arising from the audit that are, in our professional judgment, significant and relevant to those charged with governance regarding their oversight of the financial reporting process;
• Material, corrected misstatements that were brought to the attention of management as a result of our audit procedures;
• Representations we requested from management;
• Management's consultations with other accountants, if any; and • Significant issues, if any, arising from the audit that were discussed, or the subject of correspondence, with management.
If the foregoing is in accordance with your understanding, please indicate your agreement by signing this letter and emailing it to us at [email protected] or following the DocuSign link in the separate email. If you have any questions, please let us know. We appreciate the opportunity to be your financial statement auditors and look forward to working with you and your staff.