Agenda packet — Lake Elsinore City Council, June 24, 2025 (part 2 of 6)

interest rate not in excess of 12 percent per annum, or a higher rate not in excess of the maximum rate permitted by law at the time that the bonds are issued. The term of the bonds of each series shall be determined pursuant to a resolution of this City Council acting in its capacity as the legislative body of the District authorizing the issuance of the bonds of such series, but such term shall in no event exceed 35 years from the date of issuance of the bonds of such series, or such longer term as is then permitted by law.

Section 5. A public hearing (the “Hearing”) on the proposed issuance of bonded indebtedness shall be held at 7:00 p.m. or as soon thereafter as practicable, on August 12, 2025, at the City Cultural Center, 183 North Main Street, Lake Elsinore, California.

Section 6. At the time and place set forth in this Resolution for the Hearing, any interested persons, including all persons owning land or registered to vote within proposed Community Facilities District No. 2025-1, may appear and be heard.

Section 7. The City Clerk is hereby directed to publish a notice (the “Notice”) of the Hearing pursuant to Section 6061 of the Government Code in a newspaper of general circulation published in the area of the proposed Community Facilities District No. 2025-1. Such publication shall be completed at least seven days prior to the date of the Hearing. The City Clerk is further directed to mail a copy of the Notice to each of the landowners within the boundaries of proposed Community Facilities District No. 2025-1 at least 15 days prior to the Hearing.

Section 8. Resolution No. 25-029 is hereby rescinded and shall be of no further effect.

Section 9. This Resolution shall take effect immediately upon its adoption.

Section 10. The City Clerk shall certify to the adoption of this Resolution and enter it into the book of original Resolutions.

Passed and Adopted at a regular meeting of the City Council of the City of Lake Elsinore, California, this 24th day of June, 2025.
_____________________________
Brian Tisdale
Mayor
Attest:
_____________________________
Candice Alvarez, MMC
City Clerk
CC Reso. No. 2025-

Page 3 of 4 ends

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF LAKE ELSINORE )
I, Candice Alvarez, MMC, City Clerk of the City of Lake Elsinore, California, do hereby certify that Resolution No. 2025-______ was adopted by the City Council of the City of Lake Elsinore, California, at the Regular meeting of June 24, 2025 and that the same was adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
________________________________
Candice Alvarez, MMC
City Clerk
A-1
4911-0073-9893v2/022042-0050

ATTACHMENT A
Types of Facilities To Be
Financed By Community
Facilities District No. 2025-1
The proposed types of public facilities and expenses to be financed by the District include:

The construction, purchase, modification, expansion, rehabilitation and/or improvement of (i) drainage, library, park, fire, roadway, traffic, administration and community center facilities, marina/lakeside and animal shelter facilities, and other public facilities of the City, including the foregoing public facilities which are included in the City’s fee programs with respect to such facilities and authorized to be financed under the Mello-Roos Community Facilities Act of 1982, as amended and (ii) water and sewer facilities including the acquisition of capacity in the sewer system and/or water system of the Elsinore Valley Municipal Water District which are included in Elsinore Valley Municipal Water District’s water and sewer capacity and connection fee programs (the “Water District Facilities” and together, with the City Facilities, the “Facilities”), and all appurtenances and appurtenant work in connection with the foregoing Facilities, including the cost of engineering, planning, designing, materials testing, coordination, construction staking, construction management and supervision for such Facilities, and to finance the incidental expenses to be incurred, including:
a. The cost of engineering, planning and designing the Facilities; b. All costs, including costs of the property owner petitioning to form the District, associated with the creation of the District, the issuance of the bonds, the determination of the amount of special taxes to be levied and costs otherwise incurred in order to carry out the authorized purposes of the District; and
c. Any other expenses incidental to the construction, acquisition, modification, rehabilitation, completion and inspection of the Facilities.

Capitalized terms used and not defined herein shall have the meaning set forth in the Rate and Method of Apportionment of Special Taxes for the District.

LOST
RD

CANYON H ILLS
RD
^_ORANGE ST

CANYON LAKE DR N

NEWPORT
RD

RAILR OAD

CANYON R
G
D

RAY FOXDR

CANYO N
HILLS
RD

SU MMERHI LL DR CANYON DR

HOLTWAY

LOST RD

GARBANI RD

CRAIG AVE

NORTH LOOP DR
§¨¦15
CFD NO. 2025-1
(CANYON HILLS HEIGHTS)

PROJECT MAP
4925-1002-6037v2/022042-0050

REIMBURSEMENT AGREEMENT

RELATING TO PROPOSED
COMMUNITY FACILITIES DISTRICT NO. 2025-1

OF THE CITY OF LAKE ELSINORE (CANYON HILLS HEIGHTS)

THIS REIMBURSEMENT AGREEMENT RELATING TO PROPOSED COMMUNITY FACILITIES DISTRICT NO. 2025-1 OF THE CITY OF LAKE ELSINORE (CANYON HILLS HEIGHTS) (the “Agreement”) dated as of ______, 2025, is entered into by and between the City of Lake Elsinore, a general law city organized and existing under the laws and constitution of the State of California (the “City”), and Tri Pointe Homes Ie-Sd, Inc., a California Corporation (the “Owner”).

R E C I T A L S :

A. The Owner owns approximately _____ acres of land described in Exhibit A attached hereto (the “Property”) for which the Owner desires to include within proposed Community Facilities District No. 2025-1 of the City of Lake Elsinore (Canyon Hills Heights) (the “District”) to be established by the City pursuant to the Mello-Roos Community Facilities Act of 1982 (Government Code Section 53311 et seq.) (the “Act”).

B. The City and the Owner are desirous of entering into this Agreement in order to provide a mechanism by which the Owner may advance certain costs related to the cost of formation of the District, and to provide that such District, if formed, will reimburse the Owner for the amounts advanced hereunder.

AGREEMENT
NOW, THEREFORE, in consideration of the mutual promises and covenants set forth herein, the parties hereto agree as follows:

1. Recitals. Each of the above recitals is incorporated herein and is true and correct.

2. Potential Formation of the District and Issuance of Bonds. (a) At the request of the Owner, the City will undertake to form the District.

The City will retain, at the Owner’s expense, the necessary consultants to analyze the proposed formation of the District and issuance of bonds, including an engineer, special tax consultant, financial advisor, bond counsel, market absorption consultant, appraiser and other consultants deemed necessary by the City. In addition, City staff time spent in connection with the formation of the District and the issuance of bonds shall be at Owner’s expense. (b) In order to begin the process of analyzing the potential formation of the District, the Owner has advanced to the City a sum totaling $50,000. From time to time, the Owner shall make additional advances to the City within 15 days following receipt from the City of a request for an additional advance to cover the costs of forming the District and/or issuing bonds. In the event the Owner does not deliver the requested amount to the City within such 15-day period, the City will have no obligation to proceed with the analysis or bond issue unless and until such additional advance is received. The Owner shall have the right to notify the City at any time, in writing, of its intention to abandon the formation of the District or the issuance of 2 4925-1002-6037v2/022042-0050
bonds. Upon receipt of such notice, the City shall instruct its consultants to cease work as soon as practicable. The Owner shall be responsible to pay all costs and expenses incurred by the City or any City consultant or advisor prior to the date on which the City’s consultants are notified of the Owner’s notice of abandonment. Notwithstanding a decision of the Owner to abandon the formation of the District or the issuance of bonds, the City may, in its sole discretion, elect to proceed with formation of the District and/or the issuance of bonds with funds other than those of the Owner; provided, however, that, in executing this Agreement, the Owner shall not be deemed to have waived their right to object to the formation of the District or the issuance of bonds.
(c) The City will provide to the Owner on request a summary of how the advances have been spent and the unexpended balance remaining. The amounts advanced by the Owner will be reimbursable to the Owner, without interest, from the proceeds of bonds issued by the District when and if the District is formed. In the event that bonds are not issued to provide a source of reimbursement to the Owner, the City shall have no liability to the Owner to reimburse them for any of amounts previously advanced by the Owner and expended by the City in accordance with this Agreement.

3. Reimbursement Procedure. The City shall return any funds which have been advanced by the Owner which are not expended on the purposes set forth in Section 2 above.

Such returned funds shall be without interest.

4. Abandonment of CFD Formation Process. The Owner understands that any formation of the District shall be in the sole discretion of the City. No provision of this Agreement shall be construed as a promise, warranty or agreement by the City to form the District, to annex the Property to any other district or improvement area of the City or to issue any bonds. The City shall have no liability to Owner for its decision not to form the District or issue bonds.

5. Indemnification and Hold Harmless. The Owner hereby assumes the defense of, and indemnifies and saves harmless, jointly and severally, the City and each of its officers, directors, employees and agents, from and against all actions, damages, claims, losses or expenses of every type and description to which they may be subjected or put, by reason of, or arising out of any acts or omissions taken by the Owner or any of the Owner’s officers, employees, contractors and agents with respect to the formation of the District.

6. Notices. Any notice to be provided pursuant to this Agreement shall be delivered to the following addresses:

Owner TriPointe Homes
1250 Corona Pointe Court, Ste 600
Corona, CA 92879
Attention: Denise Williams
Telephone: (951) 532-2359
Email: [email protected]
City: City of Lake Elsinore
130 South Main Street
Lake Elsinore, CA 92530
3 4925-1002-6037v2/022042-0050
Attn: City Manager
Telephone: (951) 674-3124
Email: [email protected]
With a copy to: Stradling Yocca Carlson & Rauth
660 Newport Center Drive, Suite 1600
Newport Beach, CA 92660
Attention: Brian Forbath, Esq.

Telephone: (949) 725-4193
Email: [email protected]
Each party may change its address for delivery of notice by delivering written notice of such change of address to the other party.

7. Assignment. The Owner may assign its interest in this Agreement at any time provided, however, that the Owner shall provide written evidence of any assignment to the City.

8. Severability. If any part of this Agreement is held to be illegal or unenforceable by a court of competent jurisdiction, the remainder of this Agreement shall be given effect to the fullest extent permitted by law.

9. Entire Agreement. This Agreement contains the entire agreement between the parties with respect to the matters provided for herein.

10. Amendments. This Agreement may be amended or modified only by written instrument signed by all parties.

11. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original.

12. Governing Law. This Agreement and any dispute arising hereunder shall be governed by and interpreted in accordance with the laws of the State of California.

13. No Third Party Beneficiaries. No person or entity shall be deemed to be a third party beneficiary hereof, and nothing in this Agreement (either express or implied) is intended to confer upon any person or entity, other than the City and the Owner, any rights, remedies, obligations or liabilities under or by reason of this Agreement.

14. Singular and Plural; Gender. As used herein, the singular of any word includes the plural, and terms in the masculine gender shall include the feminine.

15. Termination. This Agreement shall terminate and be of no further force and effect on December 1, 2030 unless expressly amended by the parties; provided, however, that the Owner’s obligations under Section 5 shall survive the termination and the City’s obligation to provide reimbursement in accordance with Section 3 for expenses incurred prior to the termination date shall also survive termination.

S-1
4925-1002-6037v2/022042-0050
IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year first above written.

CITY OF LAKE ELSINORE, a political subdivision
of the State of California
By:

City Manager
ATTEST:

By:

Candice Alvarez, City Clerk
TRI POINTE HOMES IE-SD, INC., a
California corporation
By:____________
Brian Ortwein, Manager Member

APPROVED AS TO FORM:

CITY ATTORNEY
By:

Barbara Z. Leibold, City Attorney
A-1
4925-1002-6037v2/022042-0050

EXHIBIT A

DESCRIPTION OF PROPERTY
Real property in the City of Lake Elsinore, County of Riverside, State of California, described as follows:

Riverside County Assessor Parcel Nos.:
365-230-005
365-230-006
365-230-009
365-230-011
365-230-012
11) Formation of Community Facilities District No. 2025-2 (Cambern Apartments Services) of the City of Lake Elsinore
Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,

CALIFORNIA, DECLARING ITS INTENTION TO ESTABLISH COMMUNITY FACILITIES DISTRICT NO. 2025-2 OF THE CITY OF LAKE ELSINORE (CAMBERN APARTMENTS

SERVICES), TO AUTHORIZE THE LEVY OF A SPECIAL TAX ON PROPERTY WITHIN THE DISTRICT TO PAY THE COSTS OF PROVIDING PUBLIC SAFETY SERVICES.

Page 1 of 2 ends

REPORT TO CITY COUNCIL
To: Honorable Mayor and Members of the City Council
From: Jason Simpson, City Manager
Prepared by: Shannon Buckley, Assistant City Manager
Date: June 24, 2025
Subject: Formation of Community Facilities District No. 2025-2 (Cambern Apartments Services) of the City of Lake Elsinore
Recommendation
Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,

CALIFORNIA, DECLARING ITS INTENTION TO ESTABLISH COMMUNITY FACILITIES DISTRICT NO. 2025-2 OF THE CITY OF LAKE ELSINORE (CAMBERN APARTMENTS

SERVICES), TO AUTHORIZE THE LEVY OF A SPECIAL TAX ON PROPERTY WITHIN THE DISTRICT TO PAY THE COSTS OF PROVIDING PUBLIC SAFETY SERVICES.

Background
On March 13, 2025, the City of Lake Elsinore (the "City") approved Residential Design Review No. 2023-09, an Affordable Housing development comprising 76 apartment units, known as the Cambern Apartments. Upon approval of the project, a Condition of Approval was established for the creation of a community facilities district to provide law enforcement, fire, and paramedic services, thereby mitigating the fiscal impacts of the project on public safety services. The Applicant for the development of Cambern Apartments is Cambern Avenue Development Holding Company, LLC (the "Applicant"), which proposes to develop the 4.02-acre vacant property and build a 76-unit affordable housing apartment complex with two (2) two-story residential buildings, a community room and two (2) maintenance buildings. The Applicant has requested assistance from the City to establish Community Facilities District No. 2025-2 (Cambern Apartments Services) of the City of Lake Elsinore (the "CFD No. 2025-2" or "District") to levy special taxes on parcels of taxable property to provide certain services which are necessary to meet increased demands placed upon the City.

Establishing CFD 2025-2 (Cambern Apartments Services)

Page 2 of 2 ends

Discussion
Cambern Avenue Development Holding Company, LLC is the current landowner. It has provided a Petition and Waiver including a description of the area described in Exhibit "A" of the Resolution of Intention to be included into CFD No. 2025-2 and that a Rate and Method of Apportionment of the special taxes to be levied as described in Exhibit "C." The City has submitted a "Consent and Waiver" form on file in the City Clerk's Office to initiate and conduct proceedings under the MelloRoos Act of 1982, requesting the formation of CFD No. 2025-2 (Cambern Apartments Services) and consenting to the shortening of election time requirements, waiving analysis and arguments, and waiving all notice requirements relating to the conduct of the election.

The territory proposed to be included in CFD No. 2025-2 is Assessor's Parcel Numbers 377-380- 003 & 377-100-003. The proposed total maximum special tax rate for CFD No. 2025-2 is $150 per Affordable Housing Property per year. The maximum special tax rate is proposed to escalate each year at the greater of the Consumer Price Index (CPI) or 4%.

The next step to forming CFD No. 2025-2 is to publish a notification of the proposed District along with the "Resolution of Intention" and Boundary Map. A public hearing on the matter will take place on August 12, 2025, at which time the Council will formally consider the approval of CFD No. 2025-2.

Fiscal Impact
The rate and method of apportionment establish a maximum tax of $150 per unit per year for Affordable Housing Property, plus an annual escalation of the greater of the CPI or 4%. The District will be required to levy special taxes annually on all taxable property within the District to cover the costs of services and administration of the CFD.

Attachments
Attachment 1 - Project Map
Attachment 2 - Resolution of Intention
Exhibits A-G
Administrative Services
THIRD
ST

CONARD AVE

CAMBERN
AVE
MELBY
D
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I-15
I-15
SBON
I-15
NBOFF
§¨¦15
·|}þ74
^_

RAILR OAD

CANYON RD

SU MM ERHI LL DR CANYON DR
·|}þ74
§¨¦15

TRELLIS LN

LAKESHORE

DR MAIN ST

NICHOLS RD

FLINT ST
EL

TORO RD

THIRD ST

MILL ST

HAYGOOD WAY

RIVERSIDE DR

LA STRADA

MINTHORN ST
10TH ST

GREEN WALD
A VE

CANYON DR

WEBER WAY

DOWLING RD

WAS SONCAN YON RD

SMITH RD

C OLLIER AVE

PLUM ST
COMMUNITY FACILITIES DISTRICT NO. 2025-2
(CAMBERN APARTMENTS SERVICES)

PROJECT MAP
RESOLUTION NO. 2025-____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,

CALIFORNIA, DECLARING ITS INTENTION TO ESTABLISH COMMUNITY FACILITIES DISTRICT NO. 2025-2 OF THE CITY OF LAKE ELSINORE (CAMBERN APARTMENTS SERVICES), TO AUTHORIZE THE LEVY OF A

SPECIAL TAX ON PROPERTY WITHIN THE DISTRICT TO PAY THE COSTS OF

PROVIDING PUBLIC SAFETY SERVICES
Whereas, the City of Lake Elsinore (the “City”) has received a petition (the “Petition”) signed by the owner (the “Owner”) of certain of the land which is proposed for inclusion in a proposed community facilities district which meets the requirements of Sections 53318 and 53319 of the Government Code of the State of California; and
Whereas, the City Council (the “City Council”) of the City desires to adopt this resolution of intention as provided in Section 53321 of the Government Code of the State of California to establish a community facilities district consisting of the territory described in Exhibit “A” hereto and incorporated herein by this reference, which the City Council hereby determines shall be known as Community Facilities District No. 2025-2 of the City of Lake Elsinore (Cambern Apartments Services) (“Community Facilities District No. 2025-2” or the “District”) pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, commencing with Section 53311 of the Government Code (the “Act”) to (1) finance police protection services (including but not limited to criminal justice services), fire protection and suppression services, and paramedic services described in Exhibit “B” hereto and incorporated herein by this reference (the “Services”), and (2) finance the incidental expenses to be incurred in connection with forming and administering the District and financing the Services (the “Services Incidental Expenses”); and Whereas, the City Council further intends to approve an estimate of the costs of the Services and the Services Incidental Expenses for Community Facilities District No. 2025-2; and Whereas, it is the intention of the City Council to consider financing the Services and the Services Incidental Expenses through the formation of Community Facilities District No. 2025-2 and the levy of a special tax to pay for such Services and Services Incidental expenses;

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2025-2 (CAMBERN

APARTMENTS SERVICES) HEREBY FINDS, DETERMINES, RESOLVES, AND ORDERS AS FOLLOWS:

Section 1. Each of the above recitals are true and correct.

Section 2. A community facilities district is proposed to be established under the terms of the Act. It is further proposed that the boundaries of the community facilities district shall be the legal boundaries as described in Exhibit “A” hereto, which boundaries shall, upon recordation of the boundary map for the District, include the entirety of any parcel initially subject to taxation by the District, and as depicted on the map of the proposed Community Facilities District No. 2025-2 which is on file with the Clerk of the Board. The City Clerk is hereby directed to sign the original map of the District and record it with all proper endorsements thereon with the County Recorder of the County of Riverside within 15 days after the adoption of this resolution, all as required by Section 3111 of the Streets and Highways Code of the State of California.

CC Res. No. 2025-_____

Page 2 of 4 ends

Section 3. The name of the proposed community facilities district shall be “Community Facilities District No. 2025-2 of the City of Lake Elsinore (Cambern Apartments Services).” Section 4. The Services proposed to be provided for the benefit of Community Facilities District No. 2025-2 are public services as defined in the Act, and this City Council finds and determines that the Services to be financed are in addition to those provided in the territory of the District at the present time and do not supplant services already available within the territory of the District at the present time. The City Council hereby finds and determines that the description of the Services herein is sufficiently informative to allow taxpayers within the proposed District to understand what the funds of the District may be used to finance. The Services Incidental Expenses expected to be incurred include the costs of planning the Services, the costs of forming the District, the cost of levying and collecting a special tax within the proposed District and the cost of administration.

Section 5. Except where funds are otherwise available, a special tax sufficient to pay the costs of the Services (including incidental expenses), secured by recordation of a continuing lien against all nonexempt real property in the District, will be levied annually within the District. The Rate and Method of Apportionment, and manner of collection of the special tax are specified in Exhibit “C”.

The special taxes for Services may be increased based on the consumer price index by an amount not to exceed four percent (4%) per year to the extent permitted in the Rate and Method. The special tax for Services may be levied for such period as the Services are needed, as further described in Exhibit “C” hereto, provided that under no circumstances will such special tax be increased with respect to residential property as a consequence of delinquency or default by the owner of any other parcel or parcels within the District by more than ten percent.

The special taxes are based on the expected demand that each parcel of real property within proposed Community Facilities District No. 2025-2 will place on the Services. The City Council hereby determines that the proposed Services are necessary to meet the increased demand placed upon the City and the existing police, fire, rescue and paramedic services in the City as a result of the development of the land proposed for inclusion in the District. The City Council hereby determines the rate and method of apportionment of the special taxes set forth in Exhibit “C” to be reasonable. The special tax is apportioned to each parcel on the foregoing basis pursuant to Section 53325.3 of the Act and such special taxes are not on or based upon the value or ownership of real property.

Section 6. A public hearing (the “Hearing”) on the establishment of the proposed Community Facilities District No. 2025-2, the proposed rate and method of apportionment of the special taxes to finance the Services and the Services Incidental Expenses shall be held at 7:00 p.m., or as soon thereafter as practicable, on August 12, 2025, at the City Cultural Center, 183 North Main Street, Lake Elsinore, California. Should the City Council determine to form the District, a special election will be held to authorize the levy of the special taxes in accordance with the procedures contained in Government Code Section 53326. If held, the proposed voting procedure at the election will be a landowner vote with each landowner who is the owner of record of land within the District at the close of the Hearing, or the authorized representative thereof, having one vote for each acre or portion thereof owned within the proposed District. Ballots for the special election may be distributed by mail or by personal service.

Section 7. The City Council does not intend to make any adjustment in property taxation pursuant to Sections 53313.6 and 53313.7 of the Act.

CC Res. No. 2025-_____

Page 3 of 4 ends

Section 8. At the time and place set forth above for the Hearing, any interested person, including all persons owning lands or registered to vote within proposed Community Facilities District No. 2025-2, may appear and be heard.

Section 9. Each City officer who is or will be responsible for administering the proposed Community Facilities District No. 2025-2, if it is established, is hereby directed to study the proposed District and, at or before the time of the above-mentioned Hearing, file a report with the City Council containing a brief description of services by type which will in his or her opinion be required to meet adequately the needs of Community Facilities District No. 2025-2 and an estimate of the cost of providing those services, and an estimate of the fair and reasonable cost of Services Incidental Expenses to be incurred.

Section 10. The District may accept advances of funds or work-in-kind from any source, including, but not limited to, private persons or private entities, for any authorized purpose, including, but not limited to, paying any cost incurred in creating Community Facilities District No. 2025-2. The District may enter into an agreement with the person or entity advancing the funds or work-in-kind, to repay all or a portion of the funds advanced, or to reimburse the person or entity for the value, or cost, whichever is less, of the work-in-kind, as determined by the City Council, with or without interest.

Section 11. The City Clerk is hereby directed to publish a notice (the “Notice”) of the Hearing pursuant to Section 6061 of the Government Code in a newspaper of general circulation published in the area of proposed Community Facilities District No. 2025-2. The City Clerk is further directed to mail a copy of the Notice to each landowner within the boundaries of the District at least 15 days prior to the Hearing. The Notice shall contain the text or a summary of this Resolution, the time and place of the Hearing, a statement that the testimony of all interested persons or taxpayers will be heard, a description of the protest rights of the registered voters and landowners in the proposed district and a description of the proposed voting procedure for the election required by the Act. Such publication shall be completed at least seven (7) days prior to the date of the Hearing.

Section 12. This Resolution shall take effect immediately upon its adoption.

Section 13. The City Clerk shall certify to the adoption of this Resolution and enter it into the book of original Resolutions.

Passed a nd Adopted at a regular meeting of the City Council of the City of Lake Elsinore, California, this 24th day of June, 2025.
_____________________________
Brian Tisdale
Mayor
Attest:
_____________________________
Candice Alvarez, MMC
City Clerk
CC Res. No. 2025-_____

Page 4 of 4 ends

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF LAKE ELSINORE )
I, Candice Alvarez, MMC, City Clerk of the City of Lake Elsinore, California, do hereby certify that Resolution No. 2025-_________ was adopted by the City Council of the City of Lake Elsinore, California, at the Regular meeting of June 24, 2025, and that the same was adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_____________________________
Candice Alvarez, MMC
City Clerk

EXHIBIT A

DESCRIPTION OF PROPOSED TERRITORY
The City of Lake Elsinore Community Facilities District No. 2025-2 (Cambern Apartments Services) (the “CFD No. 2025-2”) is currently comprised of two (2) parcels, located within the city boundaries. The property is identified by the following Riverside County Assessor's Parcel Numbers (APNs).

APN Owner Name
377-380-003 Cambern Avenue Development
Holding Company, LLC
377-100-003 Cambern Avenue Development
Holding Company, LLC

EXHIBIT B

DESCRIPTION OF AUTHORIZED SERVICES

CITY OF LAKE ELSINORE
COMMUNITY FACILITIES DISTRICT NO. 2025-2
(CAMBERN APARTMENTS SERVICES)

DESCRIPTION OF AUTHORIZED SERVICES
The services which may be funded with proceeds of the special tax of CFD No. 2025-2, as provided by Section 53313 of the Act, will include some or all of the costs attributable to public safety.

These services include police protection services (including but not limited to criminal justice services), fire protection and suppression services, and paramedic services.

In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay “Administrative Expenses” as said term is defined in the Rate and Method of Apportionment and to establish an operating reserve for the costs of services as determined by the Administrator.

The above services shall be limited to those provided within the boundaries of CFD No. 2025-2 for the benefit of the properties within the boundaries of CFD No. 2025-2 and said services may be financed by proceeds of the special tax of CFD No. 2025-2 only to the extent that they are in addition to those provided in the territory of CFD No. 2025-2 before CFD No. 2025-2 was created.

EXHIBIT C

RATE AND METHOD OF APPORTIONMENT
City of Lake Elsinore Page 1
Community Facilities District No. 2025-2 (Cambern Apartments Services)

RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
COMMUNITY FACILITIES DISTRICT NO. 2025-2 (CAMBERN APARTMENTS SERVICES)

OF THE CITY OF LAKE ELSINORE
A Special Tax (the “Special Tax”) shall be levied on and collected from each Assessor’s Parcel (defined below) in Community Facilities District No. 2025-2 (Cambern Apartments Services) (the “CFD No. 2025-2” or “CFD”; defined below), in each Fiscal Year, (defined below), commencing in the Fiscal Year beginning July 1, 2025, in an amount determined by the City Council of the City of Lake Elsinore, acting in its capacity as the legislative body of CFD No. 2025-2, by applying the rate and method of apportionment set forth below. All of the real property in CFD No. 2025-2, unless exempted by law or by the provisions herein, shall be taxed to the extent and in the manner provided herein.

A. DEFINITIONS
“Accessory Dwelling Unit” means a residential unit of limited size including smaller secondary unit(s) that shares an Assessor’s Parcel with Single Family Property that has a stand-alone Residential Unit. “Administrative Expenses” means the actual or reasonably estimated costs directly related to the formation and administration of CFD No. 2025-2 including, but not limited to: the costs of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether by the City or designee thereof or both); the costs to the City, CFD No. 2025-2, or any designee thereof associated with fulfilling the CFD No. 2025-2 reporting requirements; the costs associated with responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2025-2 or any designee thereof related to an appeal of the Special Tax; and the City’s annual administration fees, collection expenses, and third party expenses. Administrative Expenses shall also include amounts estimated or advanced by the City or CFD No. 2025-2 for any other administrative purposes of CFD No. 2025-2, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes.
“Administrator” means the City Manager of the City of Lake Elsinore, or his or her designee. “Affordable Housing” means housing as defined in State Density Bonus Law, as amended, being Chapter 4.3 (commencing with Section 65915) of Division 1 of Title 7 of the Government Code of the State of California.
“Affordable Housing Property” means any Affordable Housing residential property on an Assessor’s Parcel for which a building permit for new construction has been issued by the City on or prior to March 1 preceding the Fiscal Year in which the Special Tax is being levied. “Assessor’s Parcel” means a lot or parcel of land that is identifiable by an Assessor’s Parcel Number by the County Assessor of the County of Riverside.
“Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” means the identification number assigned to a parcel by the County Assessor of the County of Riverside.

City of Lake Elsinore Page 2
Community Facilities District No. 2025-2 (Cambern Apartments Services) “CFD” or “CFD No. 2025-2” means the City of Lake Elsinore Community Facilities District No. 2025-2 (Cambern Apartments Services).
“City” means the City of Lake Elsinore.
“County” means the County of Riverside.
“Developed Property” means all Assessor’s Parcels of Taxable Property for which a building permit for new construction has been issued on or prior to March 1 preceding the Fiscal Year in which the Special Tax is being levied.
“Exempt Property” means all Assessors’ Parcels designated as being exempt from the Special Tax as provided for in Section D.
“Fiscal Year” means the period from and including July 1st of any year to and including the following June 30th.
“Maximum Special Tax” means the Maximum Special Tax, as applicable, levied within the CFD for any Fiscal Year.
“Multi-Family Property” means all Assessor's Parcels of Developed Property other than an Affordable Housing Property for which a building permit or use permit for the construction of a residential structure with two or more Residential Units that share a single Assessor's Parcel Number, as determined by the Administrator, has been issued prior to March 1 preceding the Fiscal Year in which the Special Tax is being levied.
“Proportionately” means for Taxable Property, that the ratio of the actual Special Tax levy to the Maximum Special Tax is the same for all Assessor’s Parcels. “Rate and Method of Apportionment” or “RMA" means this Rate and Method of Apportionment of Special Taxes.
“Residential Property” means all Assessor’s Parcels of Taxable Property upon which completed Residential Units have been constructed or for which building permits have been or may be issued for purposes of constructing one or more Residential Units. “Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile by one or more persons, as determined by the Administrator. An Accessory Dwelling Unit that shares an Assessor’s Parcel with a Single Family Property shall not be considered a Residential Unit for purposes of this Rate and Method of Apportionment.
“Services” means services permitted under the Mello-Roos Community Facilities Act of 1982 including, without limitation, those services authorized to be funded by CFD No. 2025-2 as set forth in Appendix B.
“Single Family Property” means any residential property other than a Multi-Family Property or an Affordable Housing Property on an Assessor’s Parcel for which a building permit for new construction has been issued by the City on or prior to March 1 preceding the Fiscal Year in which the Special Tax is being levied.

City of Lake Elsinore Page 3
Community Facilities District No. 2025-2 (Cambern Apartments Services) “Special Tax” means the Special Tax to be levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property.
"Special Tax Requirement" means the amount to be collected in any Fiscal Year to pay for certain costs as required to meet the public safety needs of CFD No. 2025-2 in both the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the direct costs for (i) police protection services, (ii) fire protection services and suppression services, (iii) paramedic services, (iv) fund an operating reserve for the costs of Services as determined by the Administrator, and (v) Administrative Expenses. Under no circumstances shall the Special Tax Requirement include funds for bonds. "Taxable Property" means all Assessor’s Parcels within CFD No. 2025-2, which are not Exempt Property.
“Taxable Unit” means a Residential Unit.
“Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed Property.

B. RATE AND METHOD OF APPORTIONMENT OF MAXIMUM SPECIAL TAX RATES As of July 1 of each Fiscal Year, commencing July 1, 2025, the Council shall determine the Special Tax Requirement and shall levy the Special Tax upon each of the Assessor’s Parcels within the CFD which constitute a Developed Property of Residential Property, including Single Family Property, MultiFamily Property, or an Affordable Housing Property, until the aggregate amount of Special Tax equals the Special Tax Requirement. The Special Tax shall be levied Proportionately on all Assessor’s Parcels of Developed Property up to 100% of the applicable Maximum Special Tax to satisfy the Special Tax Requirement.

No Special Tax shall be levied upon Undeveloped Property for which a Building Permit has not been issued on or prior to March 1 preceding the Fiscal Year in which the Special Tax is being levied.

The Maximum Special Tax for Fiscal Year 2025-2026 for a Single Family Property, Multi-Family Property, and Affordable Housing Property are shown below in Table 1.

TABLE 1

MAXIMUM SPECIAL TAX RATES
FISCAL YEAR 2025-2026
Description
Taxable
Unit
Maximum
Special Tax
Single Family Property RU $1,039.64
Multi-Family Property RU $635.93
Affordable Housing Property RU $150.00
Increase in the Maximum Special Tax
C. On each July 1, commencing on July 1, 2026 the Maximum Special Tax for Developed Property shall increase by i) the year-over-year percentage increase for the month of March in the Consumer Price City of Lake Elsinore Page 4
Community Facilities District No. 2025-2 (Cambern Apartments Services) Index (All Items) for all Urban Consumers for the Riverside-San Bernardino-Ontario California Standard Metropolitan Statistical Area, or a comparable replacement index for the area if this index is no longer published, since the beginning of the preceding Fiscal Year, or ii) by four percent (4.0%), whichever is greater.

D. TERM OF SPECIAL TAX
For each Fiscal Year, the Maximum Special Taxes shall be levied as long as the Services are being provided within the boundaries of CFD No. 2025-2.

E. EXEMPTIONS
The City shall classify as Exempt Property within CFD No. 2025-2, any Assessor’s Parcel in any of the following categories; (i) Assessor’s Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in use by any public entity; (ii) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement; (iii) Assessor’s Parcels which are privately owned but are encumbered by or restricted solely for public uses; (iv) any Assessor’s Parcel which is in use in the performance of a public function as determined by the Administrator; or (v) any Assessor’s Parcel which is not a Single Family Property, Multi-Family Property, or an Affordable Housing Property; (vi) any Assessor’s Parcel that qualifies for a welfare exemption under applicable state or local law; or (vii) any Assessor’s Parcel that is owned by a property owner association and used for common area purposes.

F. APPEALS
Any property owner claiming that the amount or application of the Special Taxes are not correct may file a written notice of appeal with the City not later than twelve months after having paid the first installment of the Special Tax that is disputed. The Administrator shall promptly review the appeal, and if necessary, meet with the property owner, consider written and oral evidence regarding the amount of the Special Tax, and rule on the appeal. If the Administrator’s decision requires that the Special Tax for an Assessor’s Parcel be modified or changed in favor of the property owner, a cash refund shall not be made, but an adjustment shall be made to the Special Tax on that Assessor’s Parcel in the subsequent Fiscal Year(s).

G. MANNER OF COLLECTION
The Maximum Special Taxes levied in each Fiscal Year shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale, and lien priority in case of delinquency as is provided for ad valorem taxes.

However, the District may collect the Special Tax at a different time or in a different manner if necessary to meet its financial obligations.

The Maximum Special Taxes when levied shall be secured by the lien imposed pursuant to Section 3115.5 of the Streets and Highways Code. This lien shall be a continuing lien and shall secure each levy of Maximum Special Taxes. The lien of Maximum Special Taxes shall continue in force and effect until the Special Tax ceases to be levied in the manner provided by Section 53330.5 of the Government Code.

City of Lake Elsinore Page 5
Community Facilities District No. 2025-2 (Cambern Apartments Services) H. INTERPRETATION
Interpretations may be made by the Council by ordinance or resolution for purposes of clarifying any vagueness or ambiguity in this Rate and Method of Apportionment.

City of Lake Elsinore Page 6
Community Facilities District No. 2025-2 (Cambern Apartments Services)

APPENDIX A

CITY OF LAKE ELSINORE
COMMUNITY FACILITIES DISTRICT NO. 2025-2
(CAMBERN APARTMENTS SERVICES)

SUMMARY
Services - It is estimated that the cost of providing police, fire protection and suppression services, and paramedic services being funded by the Special Tax for the Community Facilities District No. 2025-2 (Cambern Apartments Services) will be as follows for the Fiscal Year 2025-2026:
 $1,039.64 per residential unit for Single Family Property  $635.93 per residential unit for Multi-Family Property  $150.00 per residential unit for Affordable Housing Property Annual Escalation - On each July 1, commencing on July 1, 2026 the Maximum Special Tax for Developed Property shall increase by i) the year-over-year percentage increase for the month of March in the Consumer Price Index (All Items) for all Urban Consumers for the Riverside-San Bernardino-Ontario California Standard Metropolitan Statistical Area, or a comparable replacement index for the area if this index is no longer published, since the beginning of the preceding Fiscal Year, or ii) by four percent (4.0%), whichever is greater.

Fiscal
Year APN
Development
Name
No. of
Taxable
Units
Land Use
Category
Maximum
Special Tax Subdivider
2025-26 377-380-003,
377-100-003
Cambern
Apartments 76 Affordable Housing Property $150 Cambern Avenue Development Holding Company City of Lake Elsinore Page 7
Community Facilities District No. 2025-2 (Cambern Apartments Services)

APPENDIX B

CITY OF LAKE ELSINORE
COMMUNITY FACILITIES DISTRICT NO. 2025-2
(SAFETY SERVICES)

These services include police protection services (including but not limited to criminal justice services), fire protection and suppression services, and paramedic services.

EXHIBIT D

ANNEXATION AND POTENTIAL ANNEXATION BOUNDARY MAPS

THIRD ST

CAMBERN
AVE

ALLAN ST
377-100-003
377-380-003
COMMUNITY FACILITIES DISTRICT NO. 2025-2
(CAMBERN APARTMENTS SERVICES)

CITY OF LAKE ELSINORE,

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
SHEET 1 OF 1 SHEET
\_
CFD 2025-2
74}|·þ
74}|·þ 74}|·þ 15
§¨¦
215
§¨¦

LAKE ELSINORE
0450 900 225 Feet

PROPOSED BOUNDARY MAP
FILED THIS ____ DAY OF _______________, 20____ ATTHE HOUR OF ____ O'CLOCK __M IN BOOK _____OF MAPS OF ASSESSMENT AND COMMUNITY FACILITIESDISTRICTS AT PAGE _____ , IN THE OFFICE OF THECOUNTY RECORDER, IN THE COUNTY OF RIVERSIDE, STATE OFCALIFORNIA. FEE: _____________ NO.: ______________________ PETER ALDANA, ASSESSOR, COUNTY CLERK, RECORDERBY: _______________________________ DEPUTY
- THIS BOUNDARY MAP CORRECTLY SHOWS THE LOT OR PARCEL OF LAND INCLUDED WITHIN THE BOUNDARIES OF THE COMMUNITY FACILITIES DISTRICT. FOR DETAILS CONCERNING THE LINES AND DIMENSIONS OF LOTS OR PARCEL REFER TO THE COUNTY ASSESSOR MAPS FOR FISCAL YEAR 2025-26.

I HEREBY CERTIFY THAT THE WITHIN MAP SHOWING PROPOSEDBOUNDARIES OF COMMUNITY FACILITIES DISTRICT NO. 2025-2(CAMBERN APARTMENTS SERVICES), CITY OF LAKE ELSINORE,COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, WAS APPROVEDBY THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE AT AREGULAR MEETING THEREOF, HELD ON ______ DAY OF ______,20____, BY RESOLUTION NO. _______________ ___________________________________CITY CLERK CITY OF LAKE ELSINORE FILED IN THE OFFICE OF THE CITY CLERK, CITY OF LAKE ELSINORE,THIS ____ DAY OF ________, 20____. ______________________________ CITY CLERKCITY OF LAKE ELSINORE LEGEND

CITY BOUNDARYCFD BOUNDARYPARCEL LINE

XXX-XXX-XXX ASSESSOR PARCEL NUMBER

EXHIBIT D

EXHIBIT E

PETITION

PETITION TO THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE REQUESTING

CREATION OF A COMMUNITY FACILITIES DISTRICT OF PROPERTY WITHIN THE

CITY OF LAKE ELSINORE AND A WAIVER WITH RESPECTS TO CERTAIN

PROCEDURAL MATTERS UNDER THE MELLO-ROOS COMMUNITY FACILITIES ACT OF 1982 AND CONSENTING TO THE LEVY OF SPECIAL TAXES THEREON TO

PAY THE COSTS OF SERVICES TO BE PROVIDED BY THE COMMUNITY

FACILITIES DISTRICT

1. The undersigned requests that the City Council of the City of Lake Elsinore, initiate and conduct proceedings pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”) (Government Code Section 53311 et seq.), for the creation of a Community Facilities District No. 2025-2 (the “Community Facilities District”) of the property described below and consents to the annual levy of special taxes on such property to pay the costs of services to be provided by the community facilities district.

2. The undersigned requests that the community facilities district provide any services that are permitted under the Act including, but not limited to, all necessary service, operations, administration and maintenance to provide police protection services, including but not limited to criminal justice services, and fire protection and suppression services in the area surrounding the subject project.

3. The undersigned hereby certifies that as of the date indicated opposite its signature, it is the owner of all the property within the proposed boundaries of the Community Facilities District as described in Exhibit A hereto and as shown on the map Exhibit B hereto.

4. The undersigned requests that a special election be held under the Act to authorize the special taxes for the proposed community facilities district. The undersigned waives any requirement for the mailing of the ballot for the special election and expressly agrees that said election may be conducted by mailed or hand-delivered ballot to be returned as quickly as possible to the designated election official, being the office of the City Clerk and the undersigned requests that the results of said election be canvassed and reported to the City Council at the same meeting of the City Council as the public hearing on the creation of the Community Facilities District or at the next available meeting.

5. Pursuant to Sections 53326(a) and 53327(b) of the Act, the undersigned expressly waives all applicable waiting periods for the election and waives the requirement for analysis and arguments relating to the special election, and consents to not having such materials provided to the landowner in the ballot packet, and expressly waives any requirements as to the form of the ballot. The undersigned expressly waives all notice requirements relating to hearings and special elections (except for published notices required by the Act), and whether such requirements are found in the California Elections Code, the California Government Code or other laws or procedures, including but not limited to any notice provided for by compliance with the provisions of Section 4101 of the California Elections Code.

6. The undersigned hereby consents to and expressly waives any and all claims based on any irregularity, error, mistake or departure from the provisions of the Act or other laws of the State and any and all laws and requirements incorporated therein. No step or action in any proceeding relative to the creation of Community Facilities District No. 2025-2 within the incorporated area of the City of Lake Elsinore or the special election therein shall be invalidated or affected by any such irregularity, error, mistake or departure.

IN WITNESS WHEREOF, I hereunto set my hand this ____ day of __________, 20___.

[NAME OF LANDOWNER]
By: _____________________________________
Name:

Title:

OWNER'S PROPERTY:

TRACT MAP OR PARCEL MAP NO.
or PROJECT NO.

OWNER'S MAILING ADDRESS:
__________________________________________
__________________________________________
__________________________________________

FILED IN THE OFFICE OF THE CITY CLERK OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE THIS ____ DAY OF __________, 20___.
_____________________________________
City Clerk of the City Council of the
City of Lake Elsinore
INSERT EXHIBIT A: BOUNDARY DESCRIPTION

LEGAL DESCRIPTION
The land referred to is situated in the County of Riverside, City of Lake Elsinore, State of California, and is described as follows:

PARCEL ONE:

Lot 2, Block 13, North Elsinore Tract, as shown by Map on file in Book 5, Page 105 of Maps, Records of Riverside County, California.

Excepting therefrom the Northeasterly 264 feet thereof.

APN: 377-100-003
PARCEL TWO:

That portion of Lot 8 in Block 14 of North Elsinore Tract, as shown by Map on file in Book 5,

Page 105 ends

BEGINNING at a point on the Southwesterly line of said Lot 8, 420 feet Southeasterly from the most Westerly corner of Lot 7 in said Block 14, said point being the most Southerly corner of that certain parcel conveyed to Dewey Elam and Marcella Elam by Deed filed for record November 18, 1953 as Instrument No. 55220; THENCE Northeasterly, parallel with the Northwesterly line of said Lot 7, 210 feet; THENCE Southeasterly, parallel with the Southwesterly line of said Lot 8, 235 feet, more or less, to the center line of Third Avenue; THENCE Southwesterly, on the center line of Third Avenue, 210 feet to the most Southerly corner of Lot 8 in said Block 14; THENCE Northwesterly on the Southwesterly line of said Lot 8, 235 feet, more or less to the POINT OF BEGINNING.

Excepting from Parcel Two: an easement for road purposes over those portions in Third Street and Cambern Avenue.

APN: 377-380-003

Page 1 of 1 ends

INSERT EXHIBIT B: TRACT/PARCEL/SUBDIVISION MAP

EXHIBIT F

NOTICE OF PUBLIC HEARING

NOTICE OF PUBLIC HEARING ON INTENTION TO FORM
COMMUNITY FACILITIES DISTRICT NO. 2025-2 (CAMBERN APARTMENTS

SERVICES)
NOTICE IS HEREBY GIVEN that the City Council of the City of Lake Elsinore on June 24, 2025 adopted its Resolution No. 2025-___, in which it declared its intention to form Community Facilities District No. 2025- 2 (Cambern Apartments Services) (the "CFD No. 2025-2"), and to levy a special tax to pay for certain maintenance services, all pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982, Chapter 2.5, Part 1, Division 2, Title 5 of the California Government Code. The resolution describes the territory to be included and describes the rate and method of apportionment of the proposed special tax.

NOTICE IS HEREBY FURTHER GIVEN that the City Council has fixed 7:00 p.m., or as soon thereafter as practicable, Tuesday, August 12, 2025 in the City Council Chambers located at 183 N Main St., Lake Elsinore, California 92530, as the time and place when and where the City Council will conduct a public hearing on the annexation of territory to CFD No. 2025-2. At the hearing, the testimony of all interested persons for or against the formation of the territory or the levying of the special taxes will be heard. If and to the extent participation in the August 12, 2025 meeting must occur by teleconference, videoconference, or other electronic means authorized by the Ralph M. Brown Act or an Executive Order of the Governor of California, the means and methods for participating the meeting shall be posted on the Agenda for said meeting, which shall be posted at least 72 hours prior to the meeting on the City of Lake Elsinore (www.lakeelsinore.org), and outside of City Hall at 130 S. Main Street, Lake Elsinore, CA 92530. A copy of the Agenda will be made available upon request to the Lake Elsinore City Clerk's office at 951-674-3124; Ext. 262 DATED: ____________, 20___ _________________________________________ City Clerk of the City of Lake Elsinore

EXHIBIT G
BALLOT

CITY OF LAKE ELSINORE

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
COMMUNITY FACILITIES DISTRICT NO. 2025-2 (CAMBERN APARTMENTS SERVICES) (August 12, 2025)
This ballot is for the use of the authorized representative of the following owner of land within Community Facilities District No. 2025-2 (Cambern Apartments Services) (“CFD No. 2025-2”) of the City of Lake Elsinore:

Name of Landowner Number of Acres Owned Total Votes
Cambern Avenue Development
Holding Company, LLC 4.02 5
According to the provisions of the Mello-Roos Community Facilities Act of 1982, and resolutions of the City Council (the “Council”) of the City of Lake Elsinore (the “City”), the above-named landowner is entitled to cast the number of votes shown above under the heading “Total Votes,” representing the total votes for the property owned by said landowner. The City has sent the enclosed ballot to you so that you may vote on whether or not to approve the special tax.

This special tax ballot is for the use of the property owner of the parcels identified below, which parcels are located within the territory proposed to be annexed to the CFD No. 2025-2, City of Lake Elsinore, County of Riverside, State of California. Please advise the City Clerk, at (951) 674-3124 x 269 if the name set forth below is incorrect or if you are no longer one of the owners of these parcels. This special tax ballot may be used to express either support for or opposition to the proposed special tax. To be counted, this special tax ballot must be signed below by the owner or, if the owner is not an individual, by an authorized representative of the owner. The ballot must then be delivered to the City Clerk, either by mail or in person, as follows:

Mail
Delivery: If by mail, place ballot in the return envelope provided, and mail no later than July 29, 2025, two calendar weeks prior to the date set for the election. Mailing later than this deadline creates the risk that the special tax ballot may not be received in time to be counted.

Personal
Delivery: If in person, deliver to the City Clerk at any time up to 7:00 p.m. on August 12, 2025, at the Clerk’s office at 130 N Main St. Lake Elsinore, CA 92530.

However delivered, this ballot must be received by the Clerk prior to the close of the public meeting on August 12, 2025.

Very truly yours,
Candice Alvarez, MMC
City Clerk
TO CAST THIS BALLOT, PLEASE RETURN THIS ENTIRE PAGE.

OFFICIAL SPECIAL TAX BALLOT
Name & Address of Property Owner: Assessor’s Parcel Number(s):

Cambern Avenue Development Holding Company, LLC
Attn: Kevin Leichner
3111 Camino Del Rio N Ste 800
San Diego, CA 92108
377-100-003, 377-380-003

CITY OF LAKE ELSINORE

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
COMMUNITY FACILITIES DISTRICT NO. 2025-2 (CAMBERN APARTMENTS SERVICES) AN “X” OR OTHER MARK WILL CAST ALL VOTES ASSIGNED TO THIS BALLOT SPECIAL TAX BALLOT MEASURE MARK “YES” OR “NO”
WITH AN “X”:

Shall the City Council of the City of Lake Elsinore be authorized to levy a special tax on an annual basis at the rates and apportioned as described in Exhibit C to the Resolution Declaring its Intention to Establish Community Facilities District No. 2025-2 (Cambern Apartments Services) adopted by the City Council on June 24, 2025 (the “Resolution”), which is incorporated herein by this reference, within the territory identified on the map entitled “Proposed Boundary Map Community Facilities District No. 2025-2 (Cambern Apartments Services) City of Lake Elsinore” to finance certain services as set forth in Section 4 to the Resolution (including incidental expenses), and shall an appropriation limit be established for the Community Facilities District No. 2025-2 (Cambern Apartments Services) in the amount of special taxes collected?
YES _________

NO _________
Certification for Special Election Ballot
The undersigned is an authorized representative of the above-named landowner and is the person legally authorized and entitled to cast this ballot on behalf of the above-named landowner.

I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on ____________, 20__.

Kevin Leichner
Senior Vice President
Signature
Print Name
Title
12) Second Reading of an Ordinance Amending Section 3.08.065 of the Lake Elsinore Municipal Code, Increasing the Amount of the City Manager's Contract Authority to $50,000
Adopt by title only and waive further reading of AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, AMENDING SECTION 3.08.065 OF

THE LAKE ELSINORE MUNICIPAL CODE, INCREASING THE AMOUNT OF THE CITY MANAGER’S CONTRACT AUTHORITY TO $50,000.

Page 1 of 1 ends

REPORT TO CITY COUNCIL
To: Honorable Mayor and Members of the City Council
From: Jason Simpson, City Manager
Prepared by: Candice Alvarez, MMC, City Clerk
Date: June 24, 2025
Subject: Second Reading of an Ordinance Amending Section 3.08.065 of the Lake Elsinore Municipal Code, Increasing the Amount of the City Manager's Contract Authority to $50,000
Recommendation
Adopt by title only and waive further reading of AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, AMENDING SECTION 3.08.065 OF THE LAKE ELSINORE MUNICIPAL CODE, INCREASING THE AMOUNT OF THE CITY MANAGER’S CONTRACT AUTHORITY TO $50,000.

Background/Discussion
At its Regular meeting on June 10, 2025, the City Council introduced by title only and waived further reading of the Ordinance.

Attachments
Attachment 1 – Ordinance
City Clerk's Office
ORDINANCE NO. 2025-1503

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, AMENDING SECTION 3.08.065 OF THE LAKE ELSINORE MUNICIPAL CODE, INCREASING THE AMOUNT OF THE CITY MANAGER’S CONTRACT AUTHORITY TO $50,000
Whereas, the City Council of the City of Lake Elsinore desires to revise and expand the authority of the City Manager to authorize and enter into contracts for the purchase of supplies or equipment or contracts for personal, professional, consultant and maintenance services, as established under Section 3.08.065 of the Lake Elsinore Municipal Code (LEMC); Whereas, the City Council has considered the City Attorney's recommendation and evidence presented by interested parties regarding this item.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES ORDAIN AS FOLLOWS:

Section 1: The foregoing recitals are true and correct and are hereby incorporated into these findings by this reference.

Section 2: The City Council has reviewed and analyzed the proposed amendment to the LEMC and finds and determines that the ordinance will not be detrimental to the public interest, health, safety, convenience, or general welfare of the city and is internally consistent with other applicable provisions of the LEMC.

Section 3: The City Council hereby finds and determines that the proposed amendment to the LEMC is exempt from the California Environmental Quality Act (Cal. Publ. Res. Code §§21000 et seq. “CEQA”) and the State CEQA Guidelines (14. Cal. Code Regs §§15000 et seq.), specifically pursuant to Sections 15060(c)(2), 15060(c)(3), and 15061(b)(3) of the State CEQA Guidelines because it will not result in a direct or reasonably foreseeable indirect physical change in the environment, because there is no possibility that it may have a significant effect on the environment, and because it is not a “project” as that term is defined in Section 15378 of the State CEQA Guidelines.

Section 4: Section 3.08.065 of Chapter 3.08 of the Lake Elsinore Municipal Code is hereby amended in its entirety to read as follows:

The City Manager is authorized to enter into contracts for the purchase of supplies or equipment or contracts for personal, professional, consultant, and maintenance services where the amount of such contract does not exceed $50,000.

Section 5: Severability. If any provision of this Ordinance or its application is held invalid by a court of competent jurisdiction, such invalidity shall not affect other provisions, sections, or applications of the Ordinance which can be given effect without the invalid provision or application, and to this end each phrase, section, sentence, or word is declared to be severable.

Section 6: Effective Date. This Ordinance shall become effective at 12:01 a.m. on the thirty-first (31st) day after the date of adoption.

Ord. No. 2025-1503

Page 2 of 2 ends

Section 7: Certification. The City Clerk shall certify to the passage of this Ordinance and shall cause a synopsis of the same to be published according to law.

Passed, Approved, and Adopted at a regular meeting of the City Council of the City of Lake Elsinore, California, on this 24th day of June 2025.

Brian Tisdale
Mayor
Attest:

Candice Alvarez, MMC
City Clerk

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.

CITY OF LAKE ELSINORE )
I, Candice Alvarez, MMC, City Clerk of the City of Lake Elsinore, California, do hereby certify that Ordinance No. 2024-1503 was introduced by the City Council of the City of Lake Elsinore, California, at its Regular meeting of June 10, 2025, and adopted at its Regular meeting of June 24, 2025, and that the same was adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Candice Alvarez, MMC
City Clerk
13) Agreement with City Net for Street Outreach Services Approve and authorize the City Manager to execute a Professional Services Agreement with City Net for Street Outreach Services in an annual amount not to exceed $291,181 in such final form as approved by the City Attorney and authorize the City Manager to execute change orders not exceeding a 10% contingency of $29,118.10 for uncertainties and adjustments.

Page 1 of 2 ends

REPORT TO CITY COUNCIL
To: Honorable Mayor and Members of the City Council
From: Jason Simpson, City Manager
Prepared by: Shannon Buckley, Assistant City Manager
Date: June 24, 2025
Subject: Agreement with City Net for Street Outreach Services Recommendation
Approve and authorize the City Manager to execute a Professional Services Agreement with City Net for Street Outreach Services in an annual amount not to exceed $291,181 in such final form as approved by the City Attorney and authorize the City Manager to execute change orders not exceeding a 10% contingency of $29,118.10 for uncertainties and adjustments.

Background
Since launching our Homeless Task Force in 2017, the City has remained committed to a strategic, coordinated, and compassionate approach to addressing chronic homelessness while improving the quality of life for all residents.

The Homeless Task Force, composed of City staff, law enforcement, service providers, and community partners, meets monthly to assess progress, review up-to-date data, and refine strategies based on real-time challenges and opportunities. This ongoing collaboration ensures alignment across agencies and fosters a unified response to a complex issue.

In the field, City staff conduct weekly quality-of-life outreach efforts, directly engaging with unsheltered individuals and offering immediate access to vital services, resources, and referrals.

These consistent touchpoints are critical to building trust, encouraging compliance, and creating pathways toward permanent housing.

At the operational level, the City continues to implement its proven “trifecta” approach—an integrated model that brings together the Riverside County Sheriff’s Office (RSO), Code Enforcement, and the City’s contracted homeless services provider. This approach ensures a balanced focus on public safety, community standards, and compassionate care.

City Net Street Outreach Agreement

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A cornerstone of these efforts is The Anchor, a 16-bed crisis stabilization housing facility designed to serve Lake Elsinore’s most vulnerable chronically homeless individuals. The Anchor offers temporary shelter, intensive case management, and wraparound services, creating a structured environment where individuals can stabilize, reconnect with support systems, and transition toward long-term housing solutions.

Discussion
On May 14, the City was notified that its current homeless services provider, Social Work Action Group (SWAG), will not be renewing its contract. SWAG cited a strategic shift in focus toward "field-based, same-day interventions targeting substance abuse and mental health connections." The City is grateful to SWAG for its years of dedicated service to Lake Elsinore residents.

Following this announcement, City staff immediately engaged with Riverside County and nearby Cities to explore alternative service providers. In March 2025, the City of Murrieta conducted a Request for Proposals (RFP) for homeless services, receiving two submissions. Lake Elsinore staff participated in the review process, and Murrieta ultimately awarded the contract to City Net.

Founded in Long Beach in 2003, City Net specializes in streamlining homeless services by coordinating efforts among cities and nonprofit organizations. Their approach is built on shared goals, data-driven strategies, and measurable outcomes. City Net currently holds contracts across California, including in Riverside County, and offers services such as coordinated street outreach, case management, and housing navigation.

Through collaboration with the County of Riverside and neighboring jurisdictions, the City secured partial funding for its street outreach efforts via the County-administered Encampment Resolution Grant (ERG). This funding currently supports outreach activities along the Murrieta Creek Trail corridor, including portions that run through Lake Elsinore along Lakeshore Drive to Riverside Drive and adjacent areas.

It is recommended that the City Council approve an agreement with City Net to provide Street Outreach Services for Fiscal Year 2025–26, in an amount not to exceed $291,181. Under this agreement, City Net will serve all areas of the City not currently covered under the Encampment Resolution Grant.

Fiscal Impact
Funds are available in the City’s Fiscal Year 2025-26 Annual Operating Budget Attachments
Attachment 1 - Agreement
Exhibit A – Scope of Work
City Manager's Office

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AGREEMENT FOR PROFESSIONAL SERVICES
City Net
Street Outreach Services
This Agreement for Professional Services (the “Agreement”) is made and entered into as of June 24, 2025, by and between the City of Lake Elsinore, a municipal corporation (‘‘City") and City Net, a California Non-Profit Corporation ("Consultant").

RECITALS
A. The City has determined that it requires the following professional services:

Facilitate and Manage Street Outreach Services in Lake Elsinore B. Consultant has submitted to City a proposal, dated June 15, 2025, attached hereto as Exhibit A (“Consultant’s Proposal”) and incorporated herein, to provide professional services to City pursuant to the terms of this Agreement.

C. Consultant possesses the skill, experience, ability, background, certification and knowledge to perform the services described in this Agreement on the terms and conditions described herein.

D. City desires to retain Consultant to perform the services as provided herein and Consultant desires to provide such professional services as set forth in this Agreement.

AGREEMENT

1. Scope of Services. Consultant shall perform the services described in Consultant’s Proposal (Exhibit A). Consultant shall provide such services at the time, place, and in the manner specified in Consultant’s Proposal, subject to the direction of the City through its staff that it may provide from time to time.

2. Time of Performance.
a. Time of Essence. Time is of the essence in the performance of this Agreement. The time for completion of the professional services to be performed by Consultant is an essential condition of this Agreement. Consultant shall prosecute regularly and diligently the professional services contemplated pursuant to this Agreement according to the agreed upon performance schedule in Consultant’s Proposal (Exhibit A). b. Performance Schedule. Consultant shall commence the services pursuant to this Agreement upon receipt of a written notice to proceed and shall perform all services within the time period(s) established in the Consultant’s Proposal (Exhibit A). When requested by Consultant, extensions to the time period(s) specified may be approved in writing by the City Manager.
c. Term. Unless earlier terminated as provided elsewhere in this Agreement, this Agreement shall continue in full force and effect for a period commencing on June 25, 2025

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and ending June 30, 2028. The City may, at its sole discretion, extend the term of this Agreement on a 12-month basis not to exceed 2 additional twelve (12) month renewal terms by giving written notice thereof to Consultant not less than thirty (30) days before the end of the contract term, such notice to be exercised by the City Manager.

3. Compensation. Compensation to be paid to Consultant shall be in accordance with the fees set forth in Consultant's Proposal (Exhibit A), which is attached hereto and incorporated herein by reference. In no event shall Consultant's annual compensation exceed two hundred ninety-one thousand one hundred eighty-one dollars ($291,181.00) without additional written authorization from the City. Notwithstanding any provision of Consultant's Proposal to the contrary, out of pocket expenses set forth in Exhibit A shall be reimbursed at cost without an inflator or administrative charge. Payment by City under this Agreement shall not be deemed a waiver of defects, even if such defects were known to the City at the time of payment.

4. Method of Payment. Consultant shall promptly submit billings to the City describing the services and related work performed during the preceding month to the extent that such services and related work were performed. Consultant’s bills shall be segregated by project task, if applicable, such that the City receives a separate accounting for work done on each individual task for which Consultant provides services. Consultant’s bills shall include a brief description of the services performed, the date the services were performed, the number of hours spent and by whom, and a description of any reimbursable expenditures. City shall pay Consultant no later than forty-five (45) days after receipt of the monthly invoice by City staff.

5. Background Checks. At any time during the term of this Agreement, the City reserves the right to make an independent investigation into the background of Consultant’s personnel who perform work required by this Agreement, including but not limited to their references, character, address history, past employment, education, social security number validation, and criminal or police records, for the purpose of confirming that such personnel are lawfully employed, qualified to provide the subject service or pose a risk to the safety of persons or property in and around the vicinity of where the services will be rendered or City Hall. If the City makes a reasonable determination that any of Consultant’s prospective or then current personnel is deemed objectionable, then the City may notify Consultant of the same. Consultant shall not use that personnel to perform work required by this Agreement, and if necessary, shall replace him or her with a suitable worker.

6. Suspension or Termination.
a. The City may at any time, for any reason, with or without cause, suspend or terminate this Agreement, or any portion hereof, by serving upon the Consultant at least ten (10) days prior written notice. Upon receipt of such notice, the Consultant shall immediately cease all work under this Agreement, unless the notice provides otherwise. If the City suspends or terminates a portion of this Agreement such suspension or termination shall not make void or invalidate the remainder of this Agreement.
b. In the event this Agreement is terminated pursuant to this Section, the City shall pay to Consultant the actual value of the work performed up to the time of termination, provided that the work performed is of value to the City. Upon termination of the Agreement pursuant to this Section, the Consultant will submit an invoice to the City, pursuant to Section entitled “Method of Payment” herein.

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7. Plans, Studies, Documents.
a. Ownership of Documents. All plans, studies, documents and other writings prepared by and for Consultant, its officers, employees and agents and subcontractors in the course of implementing this Agreement, except working notepad internal documents, shall become the property of the City upon payment to Consultant for such work, and the City shall have the sole right to use such materials in its discretion without further compensation to Consultant or to any other party. Consultant shall, at Consultant’s expense, provide such reports, plans, studies, documents and other writings to City upon written request. City shall have sole determination of the public’s rights to documents under the Public Records Act, and any thirdparty requests of Consultant shall be immediately referred to City, without any other actions by Consultant.
b. Licensing of Intellectual Property. This Agreement creates a nonexclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Consultant under this Agreement ("Documents & Data"). Consultant shall require that all subcontractors agree in writing that City is granted a nonexclusive and perpetual license for any Documents & Data the subcontractor prepares under this Agreement. Consultant represents and warrants that Consultant has the legal right to license any and all Documents & Data. Consultant makes no such representation and warranty in regard to Documents & Data which were prepared by design professionals other than Consultant or provided to Consultant by the City. City shall not be limited in any way in its use of the Documents & Data at any time, provided that any such use not within the purposes intended by this Agreement shall be at City’s sole risk. c. Confidentiality. All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other Documents & Data either created by or provided to Consultant in connection with the performance of this Agreement shall be held confidential by Consultant. Such materials shall not, without the prior written consent of City, be used by Consultant for any purposes other than the performance of the services under this Agreement. Nor shall such materials be disclosed to any person or entity not connected with the performance of the services under this Agreement. Nothing furnished to Consultant which is otherwise known to Consultant or is generally known, or has become known, to the related industry shall be deemed confidential. Consultant shall not use City’s name or insignia, photographs relating to project for which Consultant’s services are rendered, or any publicity pertaining to the Consultant’s services under this Agreement in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of City.

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

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b. Consultant shall maintain all documents and records which demonstrate performance under this Agreement for a minimum period of three (3) years, or for any longer period required by law, from the date of termination or completion of this Agreement. c. Any records or documents required to be maintained pursuant to this Agreement shall be made available for inspection or audit, at any time during regular business hours, upon written request by the City Manager, City Attorney, City Auditor or a designated representative of these officers. Copies of such documents shall be provided to the City for inspection at City Hall when it is practical to do so. Otherwise, unless an alternative is mutually agreed upon, the records shall be available at Consultant’s address indicated for receipt of notices in this Agreement.
d. Where City has reason to believe that such records or documents may be lost or discarded due to dissolution, disbandment or termination of Consultant’s business, City may, by written request by any of the above-named officers, require that custody of the records be given to the City and that the records and documents be maintained in City Hall. Access to such records and documents shall be granted to any party authorized by Consultant, Consultant’s representatives, or Consultant’s successor-in-interest.

9. Independent Contractor.
a. Consultant is and shall at all times remain as to the City a wholly independent contractor pursuant to California Labor Code Section 3353. The personnel performing the services under this Agreement on behalf of Consultant shall at all times be under Consultant’s exclusive direction and control. Neither City nor any of its officers, employees, or agents shall have control over the conduct of Consultant or any of Consultant’s officers, employees, or agents, except as set forth in this Agreement. Consultant shall not at any time or in any manner represent that it or any of its officers, employees, or agents are in any manner officers, employees, or agents of the City. Consultant shall not incur or have the power to incur any debt, obligation, or liability whatsoever against City, or bind City in any manner. b. Notwithstanding any other federal, state and local laws, codes, ordinances and regulations to the contrary and except for the fees paid to Consultant as provided in the Agreement, Consultant and any of its employees, agents, and subcontractors providing service under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any claims to, any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in PERS as an employee of City and entitlement to any contribution to be paid by City for employer contribution and/or employee contributions for PERS benefits.

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

11. Interests of Consultant. Consultant (including principals, associates and professional employees) covenants and represents that it does not now have any investment or interest in real property and shall not acquire any interest, direct or indirect, in the area covered

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by this Agreement or any other source of income, interest in real property or investment which would be affected in any manner or degree by the performance of Consultant’s services hereunder. Consultant further covenants and represents that in the performance of its duties hereunder no person having any such interest shall perform any services under this Agreement.

Consultant is not a designated employee within the meaning of the Political Reform Act because Consultant:
a. will conduct research and arrive at conclusions with respect to his/her rendition of information, advice, recommendation or counsel independent of the control and direction of the City or of any City official, other than normal agreement monitoring; and b. possesses no authority with respect to any City decision beyond rendition of information, advice, recommendation or counsel. (FPPC Reg. 18700(a)(2).)

12. Professional Ability of Consultant. City has relied upon the professional training and ability of Consultant to perform the services hereunder as a material inducement to enter into this Agreement. Consultant shall therefore provide properly skilled professional and technical personnel to perform all services under this Agreement. All work performed by Consultant under this Agreement shall be in accordance with applicable legal requirements and shall meet the standard of quality ordinarily to be expected of competent professionals in Consultant’s field of expertise.

13. Compliance with Laws.
a. Consultant shall comply with all local, state and federal laws and regulations applicable to the services required hereunder, including any rule, regulation or bylaw governing the conduct or performance of Consultant and/or its employees, officers, or board members.
b. Consultant represents that it has obtained and will maintain at all times during the term of this Agreement all professional and/or business licenses, certifications and/or permits necessary for performing the services described in this Agreement, including a City business license.

14. Licenses. Consultant represents and warrants to City that it has the licenses, permits, qualifications, insurance and approvals of whatsoever nature which are legally required of Consultant to practice its profession. Consultant represents and warrants to City that Consultant shall, at its sole cost and expense, keep in effect or obtain at all times during the term of this Agreement, any licenses, permits, insurance and approvals which are legally required of Consultant to practice its profession. Consultant shall maintain a City of Lake Elsinore business license.

15. Indemnity. Consultant shall indemnify, defend, and hold harmless the City and its officials, officers, employees, agents, and volunteers from and against any and all losses, liability, claims, suits, actions, damages, and causes of action arising out of any personal injury, bodily injury, loss of life, or damage to property, or any violation of any federal, state, or municipal law or ordinance, to the extent caused, in whole or in part, by the willful misconduct or negligent acts or omissions of Consultant or its employees, subcontractors, or agents, by acts for which they could be held strictly liable, or by the quality or character of their work. The foregoing obligation of Consultant shall not apply when (1) the injury, loss of life, damage to property, or violation of

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

16. Insurance Requirements.
a. Insurance. Consultant, at Consultant’s own cost and expense, shall procure and maintain, for the duration of the contract, unless modified by the City’s Risk Manager, the following insurance policies.
i. Workers’ Compensation Coverage. Consultant shall maintain Workers’ Compensation Insurance and Employer’s Liability Insurance for his/her employees in accordance with the laws of the State of California. In addition, Consultant shall require each subcontractor to similarly maintain Workers’ Compensation Insurance and Employer’s Liability Insurance in accordance with the laws of the State of California for all of the subcontractor’s employees. Any notice of cancellation or non-renewal of all Workers’ Compensation policies must be received by the City at least thirty (30) days prior to such change. The insurer shall agree to waive all rights of subrogation against City, its officers, agents, employees and volunteers for losses arising from work performed by Consultant for City. In the event that Consultant is exempt from Worker’s Compensation Insurance and Employer’s Liability Insurance for his/her employees in accordance with the laws of the State of California, Consultant shall submit to the City a Certificate of Exemption from Workers Compensation Insurance in a form approved by the City Attorney.
ii. General Liability Coverage. Consultant shall maintain commercial general liability insurance in an amount not less than one million dollars ($1,000,000) per occurrence for bodily injury, personal injury and property damage. If a commercial general liability insurance form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement or the general aggregate limit shall be at least twice the required occurrence limit. Required commercial general liability coverage shall be at least as broad as Insurance Services Office Commercial General Liability occurrence form CG 0001 (ed. 11/88) or Insurance Services Office form number GL 0002 (ed. 1/73) covering comprehensive General Liability and Insurance Services Office form number GL 0404 covering Broad Form Comprehensive General Liability. No endorsement may be attached limiting the coverage.

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iii. Automobile Liability Coverage. Consultant shall maintain automobile liability insurance covering bodily injury and property damage for all activities of the Consultant arising out of or in connection with the work to be performed under this Agreement, including coverage for owned, hired and non-owned vehicles, in an amount of not less than one million dollars ($1,000,000) combined single limit for each occurrence.

Automobile liability coverage must be at least as broad as Insurance Services Office Automobile Liability form CA 0001 (ed. 12/90) Code 1 (“any auto”). No endorsement may be attached limiting the coverage.
iv. Professional Liability Coverage. Consultant shall maintain professional errors and omissions liability insurance appropriate for Consultant’s profession for protection against claims alleging negligent acts, errors or omissions which may arise from Consultant’s services under this Agreement, whether such services are provided by the Consultant or by its employees, subcontractors, or sub consultants. The amount of this insurance shall not be less than one million dollars ($1,000,000) on a claims-made annual aggregate basis, or a combined single limit per occurrence basis. b. Endorsements. Each general liability and automobile liability insurance policy shall be with insurers possessing a Best’s rating of no less than A:VII and shall be endorsed with the following specific language:
i. Notwithstanding any inconsistent statement in any required insurance policies or any subsequent endorsements attached thereto, the protection offered by all policies, except for Workers’ Compensation, shall bear an endorsement whereby it is provided that, the City and its officers, employees, servants, volunteers and agents and independent contractors, including without limitation, the City Manager and City Attorney, are named as additional insureds. Additional insureds shall be entitled to the full benefit of all insurance policies in the same manner and to the same extent as any other insureds and there shall be no limitation to the benefits conferred upon them other than policy limits to coverages.
ii. This policy shall be considered primary insurance as respects the City, its elected or appointed officers, officials, employees, agents and volunteers.

Any insurance maintained by the City, including any self-insured retention the City may have, shall be considered excess insurance only and shall not contribute with it. iii. This insurance shall act for each insured and additional insured as though a separate policy had been written for each, except with respect to the limits of liability of the insuring company.
iv. The insurer waives all rights of subrogation against the City, its elected or appointed officers, officials, employees or agents. v. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the City, its elected or appointed officers, officials, employees, agents or volunteers.
vi. The insurance provided by this Policy shall not be suspended, voided, canceled, or reduced in coverage or in limits except after thirty (30) days written notice has been received by the City.

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c. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by the City. At the City’s option, Consultant shall demonstrate financial capability for payment of such deductibles or self-insured retentions. d. Certificates of Insurance. Consultant shall provide certificates of insurance with original endorsements to City as evidence of the insurance coverage required herein.

Certificates of such insurance shall be filed with the City on or before commencement of performance of this Agreement. Current certification of insurance shall be kept on file with the City at all times during the term of this Agreement.

17. Notices. Any notice required to be given under this Agreement shall be in writing and either served personally or sent prepaid, first class mail. Any such notice shall be addressed to the other party at the address set forth below. Notice shall be deemed communicated within 48 hours from the time of mailing if mailed as provided in this section.

If to City: City of Lake Elsinore
Attn: City Manager
130 South Main Street
Lake Elsinore, CA 92530
With a copy to: City of Lake Elsinore
Attn: City Clerk
130 South Main Street
Lake Elsinore, CA 92530
If to Consultant: City Net
Attn: Jessica Bruce
4508 Atlantice Avenue, Suite 292
Long Beach, CA 90807

18. Assignment and Subcontracting. The parties recognize that a substantial inducement to City for entering into this Agreement is the professional reputation, experience and competence of Consultant and the subcontractors listed in Exhibit B. Consultant shall be fully responsible to City for all acts or omissions of any subcontractors. Assignments of any or all rights, duties or obligations of the Consultant under this Agreement will be permitted only with the express consent of the City. Consultant shall not subcontract any portion of the work to be performed under this Agreement except as provided in Exhibit B without the written authorization of the City. If City consents to such subcontract, Consultant shall be fully responsible to City for all acts or omissions of those subcontractors. Nothing in this Agreement shall create any contractual relationship between City and any subcontractor nor shall it create any obligation on the part of the City to pay or to see to the payment of any monies due to any such subcontractor other than as otherwise is required by law.

19. Waiver. Waiver of a breach or default under this Agreement shall not constitute a continuing waiver of a subsequent breach of the same or any other provision under this Agreement.

20. Litigation Expenses and Attorneys’ Fees. If either party to this Agreement commences any legal action against the other party arising out of this Agreement, the prevailing party shall be entitled to recover its reasonable litigation expenses, including court costs, expert witness fees, discovery expenses, and attorneys’ fees.

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21. Mediation. The parties agree to make a good faith attempt to resolve any disputes arising out of this Agreement through mediation prior to commencing litigation. The parties shall mutually agree upon the mediator and share the costs of mediation equally. If the parties are unable to agree upon a mediator, the dispute shall be submitted to JAMS or its successor in interest. JAMS shall provide the parties with the names of five qualified mediators. Each party shall have the option to strike two of the five mediators selected by JAMS and thereafter the mediator remaining shall hear the dispute. If the dispute remains unresolved after mediation, either party may commence litigation.

22. Prohibited Interests. Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

23. Equal Opportunity Employment. Consultant represents that it is an equal opportunity employer and it shall not discriminate against any subcontractor, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination.

24. Prevailing Wages. Consultant is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., ("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the performance of other requirements on "public works" and "maintenance" projects.

Consultant agrees to fully comply with all applicable federal and state labor laws (including, without limitation, if applicable, the Prevailing Wage Laws). It is agreed by the parties that, in connection with the Work or Services provided pursuant to this Agreement, Consultant shall bear all risks of payment or non-payment of prevailing wages under California law, and Consultant hereby agrees to defend, indemnify, and hold the City, and its officials, officers, employees, agents, and volunteers, free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. The foregoing indemnity shall survive termination of this Agreement.

25. Severability. If any term or portion of this Agreement is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall continue in full force and effect.

26. Controlling Law Venue. This Agreement and all matters relating to it shall be governed by the laws of the State of California and any action brought relating to this Agreement shall be held exclusively in a state court in the County of Riverside.

27. Authority to Enter Agreement. Consultant has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to

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make this Agreement and to bind each respective party. The City Manager is authorized to enter into an amendment or otherwise take action on behalf of the City to make the following modifications to the Agreement: (a) a name change; (b) grant extensions of time; (c) nonmonetary changes in the scope of services; and/or (d) suspend or terminate the Agreement.

28. Counterparts. This Agreement may be executed in several counterparts, each of which shall constitute one and the same instrument and shall become binding upon the parties when at least one copy hereof shall have been signed by both parties hereto. In approving this Agreement, it shall not be necessary to produce or account for more than one such counterpart.

29. Entire Agreement; Incorporation; Conflict. This Agreement contains the entire understanding between the parties relating to the obligations described herein. All prior or contemporaneous understandings, agreements, representations and statements, oral or written, are superseded in total by this Agreement and shall be of no further force or effect. Consultant’s Proposal is incorporated only for the description of the scope of services and/or the schedule of performance and no other terms and conditions from such proposal shall apply to this Agreement unless specifically agreed to in writing. In the event of conflict, this Agreement shall take precedence over those contained in the Consultant’s Proposal.

30. Amendments. This Agreement may be modified or amended only by a written document executed by both Consultant and City and approved as to form by the City Attorney. [Signatures on next page]

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IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the date first written above.
“CITY”
CITY OF LAKE ELSINORE, a municipal
corporation
City Manager
ATTEST:

City Clerk
APPROVED AS TO FORM:

City Attorney
Assistant City Manager
“CONSULTANT”
City Net, a California Non-Profit Corporation
By: Jessica Bruce
Its: Chief Program Officer
Attachments: Exhibit A – Consultant’s Proposal
Exhibit B – List of Subcontractors

EXHIBIT A

EXHIBIT A
CONSULTANT’S PROPOSAL
[ATTACHED]

EXHIBIT B

LIST OF SUBCONTRACTORS
[ATTACHED]
Scope of Work
2026 Scope of Work- City of Lake Elsinore
Project Overview
City Net will provide a full-time team of two case managers who will provide outreach and housing navigation services to anyone experiencing homelessness in the city of Lake Elsinore.

Description of Services
Street Outreach
Outreach and engagement efforts are the first intentional step City Net case managers take towards finding, connecting with and supporting people experiencing homelessness. During outreach, case managers locate common hot spots (i.e. encampments, streets, and parks) and visit frequently to build trust and rapport with clients. Case managers bring necessities like snack packs, water, and hygiene kits, as well as information regarding potential referrals to available services in the area. During outreach, there is no pressure to engage with services and conversations center around getting to know the person in a non-judgmental environment. Case managers are trained to zero in on details that provide insight to the clients’ motivations for future engagement.

Engagement
Once enough trust and rapport are built, engagement can begin. Case managers use the details they have learned about the client to begin motivational interviewing and harm reduction approaches to behavior change. The goal of engagement is to support clients in their decision to voluntarily participate in services and move towards stable housing. At this point, clients are not official “City Net clients” but are in the preparatory stages of accepting help and completing the enrollment process.

Specific activities may include:
• Conducting an initial assessment of client needs and eligibility • Providing informal crisis counseling
• Addressing urgent physical needs, such as providing meals, blankets, clothes, or toiletries
• Actively connecting and providing information and referrals to needed services
• Making formal referrals into the city and/or CoC shelter and housing system Case Management
Case management activities assess housing and service needs and arrange, coordinate and/or monitor the delivery of individualized services. Specific activities include:
• Assessment and intake using HMIS
• Conducting initial evaluations including verifying and documenting eligibility • Developing/securing/coordinating services
• Helping obtain Federal, State, and local benefits
• Monitoring and evaluating program participant progress in particular programs
• Providing information and referrals to other providers • Developing an individualized housing stabilization plan Housing Navigation
City Net will partner with local agencies and will provide housing navigation services and will acquire the documentation and assist with forms required for housing. Housing navigation also involves housing search which includes attending property owner meetings, setting appointments, and assisting with paperwork related to housing applications. Other services include coordinating moving arrangements for the client and setting up utilities, as well as mediation with property owners on behalf of the client.

Transportation
Through use of privately leased vans and/or transportation services, City Net will engage in:
• Transporting unsheltered people to emergency shelters, emergency health, emergency mental health, or other service facilities
• Provision of public transportation for participants
• Transportation costs (bus tickets, gas, minor car repairs, etc.) to assist homeless neighbors to relocate out of the region, provided they have permanent housing there
• Assisting program participants to use public transportation Emergency Health/Mental Health
City Net will refer homeless neighbors to emergency health and/or emergency mental health services to the extent that other customary emergency health services and treatments are unavailable or inaccessible to the homeless neighbor. A referral example is outpatient treatment of urgent medical conditions by licensed medical professionals in community-based settings (e.g. streets, parks, and campgrounds) to those eligible participants unwilling or unable to access emergency shelter or an appropriate healthcare facility.

Services for Special Populations
Services for special populations are essential services that have been tailored to address the special needs of homeless youths, victims of domestic violence, dating violence, sexual assault, or stalking, including connections to services offered by rape crisis centers, domestic violence shelters, and other organizations that serve persons who meet the HUD homeless definition and have special needs.

Food and Emergency Services
Food and other emergency services will be given to clients primarily as they first move in to housing and for emergency circumstances. During the duration of their tenancy, clients will be connected food banks and service agencies in the community as their primary resource for emergency needs.

City Net Data Collection Policy
The information City Net collects about individuals and families who access our services is confidentially stored in a local electronic database called the Homeless Management Information System (HMIS). HMIS securely records information (data) about people accessing housing and homeless services, which may include, but is not limited to, names and contact information, birthdates, demographic information, selfreported medical information, Veteran status, disability status, etc. Under the HMIS Data-Sharing Agreement, the individual client data of those who consent to have their information stored in HMIS is only viewable by qualified staff at each participating agency. In order to participate in HMIS, leaders at each agency must sign an Agency Agreement that includes a commitment to protecting client data and maintaining confidentiality, and agency staff must pass multiple trainings that each go over the importance of client privacy.

City Net is accountable to our HMIS Data-Sharing partners, to the local County, to our local Continuum of Care, and to the Department of Housing and Urban Development (HUD) to maintain the privacy and security of the confidential personal information we collect about our clients and their families. Aside from these legal and funding-related obligations, we also believe we have an ethical responsibility to our clients to not share their personal data in ways to which they’ve not agreed. To ensure City Net's commitment to excellent data collection, privacy and security, analysis and reporting practices, City Net does not authorize external agencies to complete these functions on our behalf except in very limited circumstances and only with prior written approval and with City Net's full participation in all data reporting and analysis. This is so that City Net can responsibly provide context and analysis for the data City Net collects within collaborative efforts to coordinate the most effective services for our homeless neighbors, better understand homelessness in our community, assess the types of resources needed in our local area, and participate in generating aggregate statistical reports to HUD, which help to improve policy and bring adequate funding of services for the most vulnerable populations in our community, and so City Net can assure its ethical and legal responsibilities to homeless neighbors to not share their data in ways to which they have not agreed.

Title/Role Description Est. Full Comp
Hrs/
week Wks FTE FYE26 TOTAL
Regional Program Director Project compliance with management, operations and public safety standards
$55.12 2 52 0.05 $5,732.48 $5,732.48
Program Supervisor Direct program activities, staff management/ supervision and project coordination
$45.46 8 52 0.20 $18,911.36 $18,911.36
Case Manager Street outreach, case mgt, housing navigation $37.03 40 52 2.00 $154,044.80 $154,044.80 Executive leadership Quality control, problem solving $95.65 2 52 0.05 $9,947.60 $9,947.60 Finance and Billing Payroll, billing, financial controls $53.91 2 52 0.05 $5,606.64 $5,606.64 Human resources Staff recruiting, hiring, training, disputes $44.57 2 52 0.05 $4,635.28 $4,635.28 Operations Inventory, purchasing, technical support $41.42 2 52 0.05 $4,307.68 $4,307.68

2.45 $203,185.84 $203,185.84
Item FYE26 TOTAL
Client Services $27,000.00 $27,000.00
Client Services $15,000.00 $18,000.00
Computing and
Telecommunications
$7,350.00 $7,350.00
Materials and Supplies $2,205.00 $2,205.00
Materials and Supplies $2,940.00 $2,940.00
Materials and Supplies $1,029.00 $1,029.00
Materials and Supplies $6,000.00 $6,000.00
$61,524.00 $61,524.00
Category FYE26 TOTAL
De minimis rate for nonfederal entity$26,470.98 $26,470.98 $26,470.98 $26,470.98
$291,180.82 $291,180.82
Lake Elsinore Outreach and Engagement FY 2026
2 full-time case managers plus support staff, with client services Labor
Labor Subtotal:

Operations, Program and Client Expenses
Description
Client/staff transport (1 vehicles): vehicle hire fee, gas, insurance, maintenance, plus other Fees, rental assistance and move-in costs for: rapid rehousing, sober living homes, room and Computing (computer, iPad, phone), telecommunications (phones & cell service), printer/copier w/supplies, hardware & software, wifi, etc.

Per 2 CFR 200.414-11, de minimis rate established for non-Federal entities who do not have negotiated Indirect Cost Rate. This fee is charged at a rate of 10% to offset expenses Administration subtotal:

Project TOTAL
Notes
Rates current as of 5/1/25 and valid for 90 days from this date. Annual renewal would require review of rates for rents, materials and supplies plus 3% COLA.

Description
Uniforms, copies, forms, office supplies, equipment, etc.

IT support and client management software licenses
Financial audits, other required external programmatic, workplace health, and safety audits Liability Insurance and Worker's Comp Insurance
Operations, Program and Client Expenses Subtotal:

Administration
14) Change Order No. 3 to the Public Works Construction Agreement with SAS Construction, Inc. for Concrete Footings and Foundation, Bid Set A, on the New City Hall Project (CIP Project No. Z20006)
Approve and authorize the City Manager to execute Change Order No. 3 to the Public Works Construction Agreement with SAS Construction, Inc. for the Concrete Footings and Foundation, Bid Set 'A,' on the New City Hall Project (CIP Project No. Z20006) in an amount not to exceed $219,500.00 in such final form as approved by the City Attorney, authorize the City Clerk to record the notice of completion once the entire scope of work is complete, and return withheld retention to the contractor.

Page 1 of 2 ends

REPORT TO CITY COUNCIL
To: Honorable Mayor and Members of the City Council
From: Jason Simpson, City Manager
Prepared by: Shannon Buckley, Assistant City Manager
Date: June 24, 2025
Subject: Change Order No. 3 to Public Works Construction Agreement for SAS Construction, Inc. Concrete Footings and Foundation, Bid Set A, on the New City Hall Project (CIP Project No. Z20006)
Recommendation
Approve and authorize the City Manager to execute Change Order No. 3 with SAS Construction, Inc. for the concrete footings and foundation, bid set 'A,' on the new City Hall Project (CIP Project No. Z20006) in the not to exceed amount of $219,500.00 in such final form as approved by the City Attorney; authorize the City Clerk to record the notice of completion once the entire scope of work is complete; and return withheld retention to the contractor.

Background
On March 26, 2024, a public works construction contract was awarded to SAS Construction, Inc. for $2,690,000.00 for the City Hall concrete footings and foundation (Attachment 1).

On August 22, 2024, the City posted a notice on PlanetBids inviting bids for the City Hall Bid Set "D"- Metal Stud Interior Wall Framing. During the open bid time frame (14), prime contractors reviewed the bid document; however, on the bid date deadline of September 25, 2024, no bids were submitted. On October 30, 2024, the City re-opened the City Hall Bid Set "D" Metal Stud Interior Wall Framing. During the second open bid timeframe, (9) prime contractors reviewed the bid document; however, on the bid date deadline of October 9, 2024, no bids were submitted. It was determined through discussions with some of the known PlanetBids registered prime vendors that the reasons why the contractors did not submit a qualifying bid were due to multiple factors.

Of these multiple reasons, the most common were due to the project's physical location, timing, and additional contractor commitments.

After two attempts to receive bid proposals and a discussion with the City Attorney, the staff negotiated a change order with SAS Construction, Inc. for the metal stud framing the scope of SAS Change Order No. 3 New City Hall Project

Page 2 of 2 ends

work. On October 22, 2024, Change Order No. 1 (Attachment 2) was approved for the not-toexceed amount of $1,024,850.00 approved for the metal stud interior wall framing.

On May 21, 2025, a 10% contingency Change Order No. 2 (Attachment 3) was prepared and executed by the City Manager in the amount of $275,000.00 to expand the scope of work for metal stud framing to include exterior walls and additional structural provisions required for building drift and seismic movement. In this change order, specific design requirements for the windows, stucco, brick, and drywall are closely coordinated by three structural engineers through detailed shop drawings. Each system must be designed to work with each other to satisfy the superstructure specifications.

Discussion
As the metal stud framing is completed and the window structural shop drawings are in the final stage, the building is ready to receive the exterior sheathing. The budget for this scope of work was estimated at $250,000.00. The staff has negotiated a not-to-exceed amount of $219,500.00 with SAS Construction. This change order with a current on-site contractor is necessary to keep the project on-schedule by expediting the construction of the sheathing scope of work and is costeffective for the project. The cost analysis of the change order amount demonstrates that the amount is nearly equal to the contractor's cost to provide the material and labor to complete the work. The key elements of this scope of work are listed below:
– Placement of 15"/32" plywood around the entire exterior of the building – Placement of 2 layers of construction paper over the plywood – Installation of metal wire mesh in preparation for stucco and brick exterior finishes – Installation of expansion and drift joints as instructed by the structural engineer Fiscal Impact
Funding costs are included in the Fiscal Year 23/24 – 27/28 Capital Improvement Plan (CIP) budget, CIP Project Z20006.

Attachments
Attachment 1 - Agreement SAS Construction, Inc.

Attachment 2 - SAS Change Order No. 1
Attachment 3 - SAS Change Order No. 2
Attachment 4 - SAS Change Order No. 3
City Manager's Office

CITY OF LAKE ELSINORE
130 S. MAIN STREET
LAKE ELSINORE, CA 92530
(951) 674-3124
PROJECT CHANGE ORDER CHANGE ORDER # 3
DATE: June 24, 2025
THIS CHANGE ORDER IS APPLICABLE TO:

CITY PROJECT # #Z20021 CONTRACT AWARDED TO:

PROJECT TITLE: City Hall Footings and Foundation, Bid Set ‘A’ SAS Construction Inc.

DATE AWARDED: March 26, 2024
Authorized by: Jason Simpson TOTAL AMOUNT OF CONTRACT
City Manager PRIOR TO THIS CHANGE ORDER
$2,690,000.00
CONTRACTOR IS AUTHORIZED TO MAKE THE FOLLOWING CHANGES:

QUANTITIES INCREASED

ITEM QUANTITY UNIT UNIT PRICE EXTENSION
Plywood Sheathing Lump Sum 1.00 $120,000.00 $120,000.00 2 Layers Construction Paper Lump Sum 1.00 $20,000.00 $20,000.00 Wire Mesh Lump Sum 1.00 $61,500.00 $61,500.00
Expansion Joints Lump Sum 1.00 $18,000.00 $18,000.00
Lump Sum 1.00
Lump Sum 1.00
Lump Sum 1.00

QUANTITIES DECREASED

ITEM QUANTITY UNIT PRICE EXTENSION
None
TOTAL $219,500.00

THE AMOUNT OF THE CONTRACT WILL BE (INCREASED) BY THE
SUM OF $219,500.00
Change Order No. 3
Review by: Initials Date Approved by: Date
Assistant City Manager
Contractor
City Manager:

CITY OF LAKE ELSINORE
130 S. MAIN STREET
LAKE ELSINORE, CA 92530
(951) 674-3124
PROJECT CHANGE ORDER CHANGE ORDER # 2
DATE: May 21, 2025
THIS CHANGE ORDER IS APPLICABLE TO:

CITY PROJECT # #Z20021 CONTRACT AWARDED TO:

PROJECT TITLE: City Hall Footings and Foundation, Bid Set ‘A’ SAS Construction Inc.

DATE AWARDED: March 26, 2024
Authorized by: Jason Simpson TOTAL AMOUNT OF CONTRACT
City Manager PRIOR TO THIS CHANGE ORDER
$2,690,000.00
CONTRACTOR IS AUTHORIZED TO MAKE THE FOLLOWING CHANGES:

QUANTITIES INCREASED

ITEM QUANTITY UNIT UNIT PRICE EXTENSION
Shop Drawing for structural metal studs and
exterior walls Metal gauge changes 18 to 16 and
14 gauge. Office modifications Lump Sum 1.00 $185,000.00 $185,000.00 Column Stud Framing Lump Sum 1.00 $72,000.00 $72,000.00 2nd Floor ceiling soffit for HVAC Lump Sum 1.00 $18,000.00 $18,000.00 Lump Sum 1.00 $0.00
Lump Sum 1.00 $0.00
Lump Sum 1.00 $0.00
Lump Sum 1.00 $0.00

QUANTITIES DECREASED

ITEM QUANTITY UNIT PRICE EXTENSION
None
TOTAL $275,000.00

THE AMOUNT OF THE CONTRACT WILL BE (INCREASED) BY THE
SUM OF $275,000.00
Change Order No. 2
Review by: Initials Date Approved by: Date
Assistant City Manager
Contractor
City Manager:

CITY OF LAKE ELSINORE
130 S. MAIN STREET
LAKE ELSINORE, CA 92530
(951) 674-3124
PROJECT CHANGE ORDER CHANGE ORDER # 1
DATE: October 22, 2024
THIS CHANGE ORDER IS APPLICABLE TO:

CITY PROJECT # #Z20021 CONTRACT AWARDED TO:

PROJECT TITLE: City Hall Footings and Foundation, Bid Set ‘A’ SAS Construction Inc.

DATE AWARDED: March 26, 2024
Authorized by: Jason Simpson TOTAL AMOUNT OF CONTRACT
City Manager PRIOR TO THIS CHANGE ORDER
$2,690,000.00
CONTRACTOR IS AUTHORIZED TO MAKE THE FOLLOWING CHANGES:

QUANTITIES INCREASED

ITEM QUANTITY UNIT UNIT PRICE EXTENSION
Mobilization & Demobilization Including
Construction Schedules
(Not To Exceed 3% of Total Bid) Lump Sum 1.00 $25,000.00 $25,000.00 Labor, Material and Performance Bonds Lump Sum 1.00 $70,000.00 $70,000.00 Metal Stud Interior Metal Stud Framing Material Lump Sum 1.00 $150,000.00 $150,000.00 Metal Stud Interior Framing Labor Lump Sum 1.00 $250,000.00 $250,000.00 Metal Stud Exterior Metal Stud Framing Material Lump Sum 1.00 $250,000.00 $250,000.00 Metal Stud Exterior Framing Labor Lump Sum 1.00 $250,000.00 $250,000.00 Overhead Lump Sum 1.00 $29,850.00 $29,850.00

QUANTITIES DECREASED

ITEM QUANTITY UNIT PRICE EXTENSION
None
TOTAL $1,024,850.00

THE AMOUNT OF THE CONTRACT WILL BE (INCREASED) BY THE
SUM OF $1,024,850.00
Change Order No. 1
Review by: Initials Date Approved by: Date
Assistant City Manager
Contractor
City Manager:

1 Agreement No. __________

AGREEMENT FOR PUBLIC WORKS CONSTRUCTION
SAS Construction
For the
City Hall Concrete
Footings and Foundation,
Bid Set ‘A’
CIP PROJECT NO. Z20006
This Agreement for Public Works Construction (“Agreement”) is made and entered into as of March 26, 2024 by and between the City of Lake Elsinore, a municipal corporation (“City”) and SAS Construction (“Contractor”).

The City and Contractor, in consideration of the mutual promises and covenants set forth herein, agree as follows:

1. The Project and Project Documents. Contractor agrees to construct the following public improvements (“work”) identified as:

City Hall Concrete Footings and Foundation, Bid Set ‘A’(the “Project”) The City-approved plans for the construction of the Project, which are incorporated herein by reference and prepared by Staff, are identified as:

Bid Set ‘A’, Concrete Footings and Foundation
The Project Documents include this Agreement and all of the following: (1) the Notice Inviting Bids, Instructions to Bidders, Bid Documents including Bidder’s Proposal as submitted by the Contractor, Contract Documents, General Specifications, Special Provisions, and all attachments and appendices; (2) everything referenced in such documents, such as specifications, details, standard plans or drawings and appendices, including all applicable State and Federal requirements; (3) all required bonds, insurance certificates, permits, notices, and affidavits; and (4) any and all addenda or supplemental agreements clarifying, amending or extending the work contemplated as may be required to insure completion in an acceptable manner. All of the provisions of the above-listed documents are made a part of this Agreement as though fully set forth herein.

DocuSign Envelope ID: 0ADCE614-C0AD-4C2B-A24C-119E2D79E6E9 2 b. City hereby promises and agrees to employ, and does hereby employ, Contractor to provide the materials, do the work, and fulfill the obligations according to the terms and conditions herein contained and referred to, for the prices set forth, and hereby contracts to pay the same at the time, in the manner, and upon the conditions set forth in the Project Documents.
c. Contractor agrees to receive and accept the prices set forth in the Bidder’s Proposal as full compensation for furnishing all materials, performing all work, and fulfilling all obligations hereunder. Such compensation shall cover all expenses, losses, damages, and consequences arising out of the nature of work during its progress or prior to its acceptance including those for well and faithfully completing the work and the whole thereof in the manner and time specified in the Project Documents; and also including those arising from actions of the elements, unforeseen difficulties or obstructions encountered in the prosecution of the work, suspension or discontinuance of the work, and all other unknowns or risks of any description connected with the work.

3. Completion of Work.
a. Contractor shall perform and complete all work within 45 working days from the date of commencement specified in the Notice to Proceed, and shall provide, furnish and pay for all the labor, materials, necessary tools, expendable equipment, and all taxes, utility and transportation services required for construction of the Project. b. All work shall be performed and completed in a good workmanlike manner in strict accordance with the drawings, specifications and all provisions of this Agreement as hereinabove defined and in accordance with applicable laws, codes, regulations, ordinances and any other legal requirements governing the Project.
c. Contractor shall not be excused with respect to the failure to so comply by any act or omission of the City, the City Engineer, a City inspector, or a representative of any of them, unless such act or omission actually prevents the Contractor from fully complying with the requirements of the Project Documents, and unless the Contractor protests at the time of such alleged prevention that the act or omission is preventing the Contractor from fully complying with the Project Documents. Such protest shall not be effective unless reduced to writing and filed with the City within three (3) working days of the date of occurrence of the act or omission preventing the Contractor from fully complying with the Project Documents. d. City and Contractor recognize that time is of the essence in the performance of this Agreement and further agree that if the work called for under the Agreement is not completed within the time hereinabove specified, damages will be sustained by the City and that, it is and will be impracticable or extremely difficult to ascertain and determine the actual amount of damages the City will sustain in the event of, and by reason of, such delay. It is, therefore, agreed that such damages shall be presumed to be in the amount of $1,000 per calendar day, and that the Contractor will pay to the City, or City may retain from amounts otherwise payable to Contractor, such amount for each calendar day by which the Contractor fails to complete the work, including corrective items of work, under this Agreement within the time hereinabove specified and as adjusted by any changes to the work.

DocuSign Envelope ID: 0ADCE614-C0AD-4C2B-A24C-119E2D79E6E9 3 4. Changes to Work. City and Contractor agree that the City may make changes to the work, or suspend the work, and no matter how many changes, such changes or suspensions are within the contemplation of the Contractor and City and will not be a basis for a compensable delay claim against the City nor be the basis for a liquidated damage claim against the Contractor.

Any change to the work shall be by way of a written instrument (“change order”) signed by the City and the Contractor, stating their agreement to the following:
a. The scope of the change in the work;
b. The amount of the adjustment to the contract price; and c. The extent of the adjustment to the Schedule of Performance.

The City Engineer is authorized to sign any change order provided that sufficient contingency funds are available in the City’s approved budget for the Project. All change in the work authorized by the change order shall be performed under the applicable conditions of the Project Documents. City and Contractor shall negotiate in good faith and as expeditiously as possible the appropriate adjustments for such changes.

5. Bonds. Contractor shall provide, before commencing work, a Faithful Performance Bond and a Labor and Material Bond, each for one-hundred percent (100%) of the contract price in the form that complies with the Project Documents and is satisfactory to the City Attorney.

6. Non-Assignability. Neither this Agreement nor any rights, title, interest, duties or obligations under this Agreement may be assigned, transferred, conveyed or otherwise disposed of by Contractor without the prior written consent of City.

7. Licenses. Contractor represents and warrants to City that it holds the contractor’s license or licenses set forth in the Project Documents, is registered with the Department of Industrial Relations pursuant to Labor Code Section 1725.5, and holds such other licenses, permits, qualifications, insurance and approvals of whatsoever nature which are legally required of Contractor. Contractor represents and warrants to City that Contractor shall, at its sole cost and expense, keep in effect or obtain at all times during the term of this Agreement, any licenses, permits, insurance and approvals which are legally required of Contractor to practice its profession. Contractor shall maintain a City of Lake Elsinore business license.

8. Indemnity. Contractor shall indemnify, defend, and hold harmless the City and its officials, officers, employees, agents, the County and Board Supervisors, and volunteers from and against any and all losses, liability, claims, suits, actions, damages, and causes of action arising out of any personal injury, bodily injury, loss of life, or damage to property, or any violation of any federal, state, or municipal law or ordinance, to the extent caused, in whole or in part, by the willful misconduct or negligent acts or omissions of Contractor or its employees, subcontractors, or agents, by acts for which they could be held strictly liable, or by the quality or character of their work. The foregoing obligation of Contractor shall not apply when (1) the injury, loss of life, damage to property, or violation of law arises from the sole negligence or willful misconduct of the City or its officers, employees, agents, or volunteers and (2) the actions of Contractor or its employees, subcontractor, or agents have contributed in no part to the injury, loss of life, damage to
DocuSign Envelope ID: 0ADCE614-C0AD-4C2B-A24C-119E2D79E6E9 4 property, or violation of law. It is understood that the duty of Contractor to indemnify and hold harmless includes the duty to defend as set forth in Section 2778 of the California Civil Code.

Acceptance by City of insurance certificates and endorsements required under this Agreement does not relieve Contractor from liability under this indemnification and hold harmless clause.

This indemnification and hold harmless clause shall apply to any damages or claims for damages whether or not such insurance policies shall have been determined to apply. By execution of this Agreement, Contractor acknowledges and agrees to the provisions of this Section and that it is a material element of consideration.

9. Insurance Requirements.
a. Insurance. Contractor, at Contractor’s own cost and expense, shall procure and maintain, for the duration of the Agreement, unless modified by the City’s Risk Manager, the following insurance policies.
i. Workers’ Compensation Coverage. Contractor shall maintain Workers’ Compensation Insurance and Employer’s Liability Insurance for his/her employees in accordance with the laws of the State of California. In addition, Contractor shall require each subcontractor to similarly maintain Workers’ Compensation Insurance and Employer’s Liability Insurance in accordance with the laws of the State of California for all of the subcontractor’s employees. Any notice of cancellation or non-renewal of all Workers’ Compensation policies must be received by the City at least thirty (30) days prior to such change. The insurer shall agree to waive all rights of subrogation against City, its officers, agents, employees and volunteers for losses arising from work performed by Contractor for City. In the event that Contractor is exempt from Worker’s Compensation Insurance and Employer’s Liability Insurance for his/her employees in accordance with the laws of the State of California, Contractor shall submit to the City a Certificate of Exemption from Workers Compensation Insurance in a form approved by the City Attorney.
ii. Commercial General Liability Coverage. Contractor shall maintain commercial general liability insurance in an amount not less than one million dollars ($1,000,000) per occurrence for bodily injury, personal injury and property damage. If a commercial general liability insurance form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement or the general aggregate limit shall be at least twice the required occurrence limit. Required commercial general liability coverage shall be at least as broad as Insurance Services Office Commercial General Liability occurrence form CG 0001 (ed. 11/88) or Insurance Services Office form number GL 0002 (ed. 1/73) covering comprehensive General Liability and Insurance Services Office form number GL 0404 covering Broad Form Comprehensive General Liability. No endorsement may be attached limiting the coverage.
iii. Automobile Liability Coverage. Contractor shall maintain automobile liability insurance covering bodily injury and property damage for all activities of the Contractor arising out of or in connection with the work to be performed under this Agreement, including coverage for owned, hired and non-owned vehicles, in an amount of not less than one million dollars ($1,000,000) combined single limit for each occurrence. Automobile liability coverage must be at least as broad as Insurance Services Office Automobile Liability form CA 0001 (ed. 12/90) Code 1 (“any auto”). No endorsement may be attached limiting the coverage.

DocuSign Envelope ID: 0ADCE614-C0AD-4C2B-A24C-119E2D79E6E9 5 iv. Builder’s Risk Coverage. Prior to the commencement of any construction of the Project, Design-Builder shall obtain (or cause to be obtained) and keep in force during the term of any construction, builder’s risk insurance insuring for all risks of physical loss of or damage (excluding the perils of earthquake and flood). v. Professional Liability Coverage. Contractor shall maintain professional errors and omissions liability insurance appropriate for Contractor’s profession for protection against claims alleging negligent acts, errors or omissions which may arise from Contractor’s services under this Agreement, whether such services are provided by the Contractor or by its employees, subcontractors, or sub consultants.

The amount of this insurance shall not be less than one million dollars ($1,000,000) on a claims-made annual aggregate basis, or a combined single limit per occurrence basis.
b. Endorsements. Each general commercial liability and automobile liability insurance policy shall be with insurers possessing a Best’s rating of no less than A:VII and shall be endorsed with the following specific language:
i. The City, its elected or appointed officers, officials, employees, agents and volunteers are to be covered as additional insured with respect to liability arising out of work performed by or on behalf of the Contractor, including materials, parts or equipment furnished in connection with such work or operations. ii. This policy shall be considered primary insurance as respects the City, its elected or appointed officers, officials, employees, agents and volunteers. Any insurance maintained by the City, including any self-insured retention the City may have, shall be considered excess insurance only and shall not contribute with it. iii. This insurance shall act for each insured and additional insured as though a separate policy had been written for each, except with respect to the limits of liability of the insuring company.
iv. The insurer waives all rights of subrogation against the City, its elected or appointed officers, officials, employees or agents. v. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the City, its elected or appointed officers, officials, employees, agents or volunteers.
vi. The insurance provided by this Policy shall not be suspended, voided, canceled, or reduced in coverage or in limits except after thirty (30) days written notice has been received by the City.
c. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by the City. At the City’s option, Contractor shall demonstrate financial capability for payment of such deductibles or self-insured retentions. d. Certificates of Insurance. Contractor shall provide certificates of insurance with original endorsements to City as evidence of the insurance coverage required herein.

Certificates of such insurance shall be filed with the City on or before commencement of DocuSign Envelope ID: 0ADCE614-C0AD-4C2B-A24C-119E2D79E6E9 6 performance of this Agreement. Current certification of insurance shall be kept on file with the City at all times during the term of this Agreement.

10. Notices. Any notice required to be given under this Agreement shall be in writing and either served personally or sent prepaid, first class mail. Any such notice shall be addressed to the other party at the address set forth below. Notice shall be deemed communicated within 48 hours from the time of mailing if mailed as provided in this section.

If to City: City of Lake Elsinore
Attn: City Manager
130 South Main Street
Lake Elsinore, CA 92530
With a copy to: City of Lake Elsinore
Attn: City Clerk
130 South Main Street
Lake Elsinore, CA 92530
If to Contractor: SAS Construction
Attn: Seyed Mohammad Ali Shahabi
301 West Dryer Rd Unit D
Santa Ana CA 92707

11. Entire Agreement. This Agreement constitutes the complete and exclusive statement of agreement between the City and Contractor. All prior written and oral communications, including correspondence, drafts, memoranda, and representations, are superseded in total by this Agreement.

12. Amendments. This Agreement may be modified or amended only by a written document executed by both Contractor and City and approved as to form by the City Attorney.

13. Assignment and Subcontracting. Contractor shall be fully responsible to City for all acts or omissions of any subcontractors. Assignments of any or all rights, duties for obligations of the Contractor under this Agreement will be permitted only with the express consent of the City. Nothing in this Agreement shall create any contractual relationship between City and any subcontractor nor shall it create any obligation on the part of the City to pay or to see to the payment of any monies due to any such subcontractor other than as otherwise is required by law.

14. Waiver. Waiver of a breach or default under this Agreement shall not constitute a continuing waiver of a subsequent breach of the same or any other provision under this Agreement.

15. Severability. If any term or portion of this Agreement is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall continue in full force and effect.

DocuSign Envelope ID: 0ADCE614-C0AD-4C2B-A24C-119E2D79E6E9 7 17. Litigation Expenses and Attorneys’ Fees. If either party to this Agreement commences any legal action against the other party arising out of this Agreement, the prevailing party shall be entitled to recover its reasonable litigation expenses, including court costs, expert witness fees, discovery expenses, and attorneys’ fees.

18. Mediation. The parties agree to make a good faith attempt to resolve any disputes arising out of this Agreement through mediation prior to commencing litigation. The parties shall mutually agree upon the mediator and share the costs of mediation equally. If the parties are unable to agree upon a mediator, the dispute shall be submitted to JAMS or its successor in interest. JAMS shall provide the parties with the names of five qualified mediators. Each party shall have the option to strike two of the five mediators selected by JAMS and thereafter the mediator remaining shall hear the dispute. If the dispute remains unresolved after mediation, either party may commence litigation.

19. Authority to Enter Agreement and Administration. Contractor has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and to bind each respective party. The City Manager is authorized to enter into an amendment or otherwise take action on behalf of the City to make the following modifications to the Agreement: (a) a name change; (b) grant extensions of time; (c) non-monetary changes in the scope of services; and/or (d) suspend or terminate the Agreement. The City Engineer shall act as the Project administrator on behalf of the City.

20. Prohibited Interests. Contractor maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Contractor, to solicit or secure this Agreement. Further, Contractor warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Contractor, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

21. Equal Opportunity Employment. Contractor represents that it is an equal opportunity employer and it shall not discriminate against any subcontractor, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination.

DocuSign Envelope ID: 0ADCE614-C0AD-4C2B-A24C-119E2D79E6E9 8 b. Contractor's attention is directed to the provisions of Labor Code Sections 1774, 1775, 1776, 1777.5 and 1777.6. Contractor shall comply with the provisions of these Sections. The statutory provisions for penalties for failure to comply with the State's wage and the hours laws will be enforced.
c. Labor Code Sections 1774 and 1775 require the Contractor and all subcontractors to pay not less than the prevailing wage rates to all workmen employed in the execution of the contract and specify forfeitures and penalties for failure to do so. The minimum wages to be paid are those determined by the State Director of the Department of Industrial Relations. Labor Code Section 1776 requires the Contractor and all subcontractors to keep accurate payroll records, specifies the contents thereof, their inspection and duplication procedures and certain notices required of the Contractor pertaining to their location. The statutory penalties for failure to pay prevailing wages will be enforced. If the Project has been awarded to Contractor on or after April 1, 2015, Contractor and its subcontractors must furnish electronic certified payroll records to the Labor Commissioner. Beginning January 1, 2016, Contractor and its subcontractors must furnish electronic certified payroll records to the Labor Commissioner without regard to when the Project was awarded to Contractor. d. Labor Code Section 1777.5 requires Contractor or subcontractor employing tradesmen in any apprenticeable occupation to apply to the Joint Apprenticeship Committee nearest the site of the public works project, which administers the apprenticeship program in that trade for a certificate of approval. The certificate will also fix the ratio of apprentices to journeymen to be used in the performance of the Agreement. The Contractor is required to make contributions to funds established for the administration of apprenticeship programs if the Contractor employs registered apprentices or journeymen in any apprenticeable trade and if other contractors on the public works site are making such contributions.

Information relative to apprenticeship standards, contributions, wage schedules and other requirements may be obtained from the State Director of Industrial Relations or from the Division of Apprenticeship Standards. Labor Code Section 1777.6 provides that it shall be unlawful to refuse to accept otherwise qualified employees as registered apprentices solely on the grounds of race, religious creed, color, national origin, ancestry, sex, or age. e. Eight hours labor constitutes a legal day's work, as set forth in Labor Code Section 1810.

23. Execution. This Agreement may be executed in several counterparts, each of which shall constitute one and the same instrument and shall become binding upon the parties when at least one copy hereof shall have been signed by both parties hereto. In approving this Agreement, it shall not be necessary to produce or account for more than one such counterpart. [Signatures on next page]
DocuSign Envelope ID: 0ADCE614-C0AD-4C2B-A24C-119E2D79E6E9 9 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the date first written above.
“CITY”
CITY OF LAKE ELSINORE, a municipal
corporation
“CONTRACTOR”
SAS Construction
City Manager
ATTEST:

By: Seyed Mohammad Ali Shahabi
Its: Owner
City Clerk
APPROVED AS TO FORM:

By: Click or tap here to enter text.

Its: Click or tap here to enter text.

City Attorney
Assistant City Manager
DocuSign Envelope ID: 0ADCE614-C0AD-4C2B-A24C-119E2D79E6E9

EXHIBIT A
CONTRACTOR’S PROPOSAL
[ATTACHED]
DocuSign Envelope ID: 0ADCE614-C0AD-4C2B-A24C-119E2D79E6E9

EXHIBIT B

LIST OF SUBCONTRACTORS
[ATTACHED]
DocuSign Envelope ID: 0ADCE614-C0AD-4C2B-A24C-119E2D79E6E9

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DocuSign Envelope ID: 0ADCE614-C0AD-4C2B-A24C-119E2D79E6E9 DocuSign Envelope ID: 0ADCE614-C0AD-4C2B-A24C-119E2D79E6E9 DocuSign Envelope ID: 0ADCE614-C0AD-4C2B-A24C-119E2D79E6E9 DocuSign Envelope ID: 0ADCE614-C0AD-4C2B-A24C-119E2D79E6E9 DocuSign Envelope ID: 0ADCE614-C0AD-4C2B-A24C-119E2D79E6E9 DocuSign Envelope ID: 0ADCE614-C0AD-4C2B-A24C-119E2D79E6E9 DocuSign Envelope ID: 0ADCE614-C0AD-4C2B-A24C-119E2D79E6E9 DocuSign Envelope ID: 0ADCE614-C0AD-4C2B-A24C-119E2D79E6E9 DocuSign Envelope ID: 0ADCE614-C0AD-4C2B-A24C-119E2D79E6E9 DocuSign Envelope ID: 0ADCE614-C0AD-4C2B-A24C-119E2D79E6E9 DocuSign Envelope ID: 0ADCE614-C0AD-4C2B-A24C-119E2D79E6E9 DocuSign Envelope ID: 0ADCE614-C0AD-4C2B-A24C-119E2D79E6E9 DocuSign Envelope ID: 0ADCE614-C0AD-4C2B-A24C-119E2D79E6E9 DocuSign Envelope ID: 0ADCE614-C0AD-4C2B-A24C-119E2D79E6E9 DocuSign Envelope ID: 0ADCE614-C0AD-4C2B-A24C-119E2D79E6E9

SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE

THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS.

INSURER(S) AFFORDING COVERAGE
INSURER F :

INSURER E :

INSURER D :

INSURER C :

INSURER B :

INSURER A : NAIC #
NAME: CONTACT
(A/C, No): FAX
E-MAIL ADDRESS:

PRODUCER
(A/C, No, Ext): PHONE

INSURED
COVERAGES CERTIFICATE NUMBER: REVISION NUMBER:

IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed.

If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s).

THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS

CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.

OTHER:
(Per accident)
(Ea accident)
$
$
N / A

SUBR WVDADDL
INSD

THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS

CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. $
$
$
$ PROPERTY DAMAGE
BODILY INJURY (Per accident)
BODILY INJURY (Per person) COMBINED SINGLE LIMIT

AUTOS ONLY

AUTOS ONLY AUTOS NON-OWNED OWNED SCHEDULED

ANY AUTO

AUTOMOBILE LIABILITY

Y / N WORKERS COMPENSATION
AND EMPLOYERS' LIABILITY OFFICER/MEMBER EXCLUDED?
(Mandatory in NH) DESCRIPTION OF OPERATIONS below
If yes, describe under

ANY PROPRIETOR/PARTNER/EXECUTIVE
$
$
$ E.L. DISEASE - POLICY LIMIT E.L. DISEASE - EA EMPLOYEEE.L. EACH ACCIDENT EROTH- STATUTE PER
(MM/DD/YYYY) LIMITS POLICY EXP(MM/DD/YYYY) POLICY EFFLTR TYPE OF INSURANCE POLICY NUMBER INSR
DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required)

EXCESS LIAB
UMBRELLA LIAB EACH OCCURRENCE $ AGGREGATE $
$
OCCUR
CLAIMS-MADE DED RETENTION $
PRODUCTS - COMP/OP AGG $ GENERAL AGGREGATE $ PERSONAL & ADV INJURY $ MED EXP (Any one person) $
EACH OCCURRENCE $ DAMAGE TO RENTED
PREMISES (Ea occurrence) $ COMMERCIAL GENERAL LIABILITY CLAIMS-MADE OCCUR GEN'L AGGREGATE LIMIT APPLIES PER: POLICY PRO- JECT LOC

CERTIFICATE OF LIABILITY INSURANCE DATE (MM/DD/YYYY)

CANCELLATION

AUTHORIZED REPRESENTATIVE
ACORD 25 (2016/03)
© 1988-2015 ACORD CORPORATION. All rights reserved.

CERTIFICATE HOLDER
The ACORD name and logo are registered marks of ACORD
HIRED

AUTOS ONLY
3/27/2024
Orr & Associates Insurance Services
28780 Single Oak Dr
Ste 255
Temecula CA 92590
Certificates 800-311-3081 800-474-3003 [email protected] License#: 0E63493 Everest Premier Insurance Comp 16045 SASCONS-02 Mt. Hawley Insurance Company 37974 SAS Construction
301 West Dyer Rd Unit D
Santa Ana CA 92707
California Auto Insurance Co. 38342 Associated Industries Ins. Co. 23140 1624579058 1 D X 2,000,000 X 100,000 5,000 2,000,000 4,000,000 X
Y Y AES120346103 10/9/2023 10/9/2024
4,000,000
C
1,000,000 X
BA040000068035 6/1/2023 6/1/2024
B X 2,000,000 X
GXS0011833 4/20/2023 4/20/2024
2,000,000
A Y 7600022755231 10/9/2023 10/9/2024
X
1,000,000 1,000,000 1,000,000
Certificate is subject to policy limits, conditions and exclusions.

City of Lake Elsinore is named as Additional Insured as per attached endorsement form(s).

City of Lake Elsinore
130 South Main St
Lake Elsinore, CA 92530
DocuSign Envelope ID: 0ADCE614-C0AD-4C2B-A24C-119E2D79E6E9

COMMERCIAL GENERAL LIABILITY
CG 20 33 07 04
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

CG 20 33 07 04 © ISO Properties, Inc., 2004 Page 1 of 1 ADDITIONAL INSURED – OWNERS, LESSEES OR
CONTRACTORS – AUTOMATIC STATUS WHEN

REQUIRED IN CONSTRUCTION AGREEMENT WITH YOU
This endorsement modifies insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE PART
A. Section II – Who Is An Insured is amended to
include as an additional insured any person or organization for whom you are performing operations when you and such person or organization have
agreed in writing in a contract or agreement that
such person or organization be added as an additional insured on your policy. Such person or organization is an additional insured only with respect to liability for "bodily injury", "property damage" or "personal and advertising injury"
caused, in whole or in part, by:

1. Your acts or omissions; or

2. The acts or omissions of those acting on your
behalf;
in the performance of your ongoing operations for
the additional insured.

A person's or organization's status as an additional
insured under this endorsement ends when your
operations for that additional insured are completed.

B. With respect to the insurance afforded to these
additional insureds, the following additional exclusions apply:

This insurance does not apply to:

1. "Bodily injury", "property damage" or "personal
and advertising injury" arising out of the rendering of, or the failure to render, any professional architectural, engineering or surveying services, including:
a. The preparing, approving, or failing to prepare or approve, maps, shop drawings, opinions, reports, surveys, field orders, change orders or drawings and specifications; or
b. Supervisory, inspection, architectural or
engineering activities.

2. "Bodily injury" or "property damage" occurring
after:
a. All work, including materials, parts or
equipment furnished in connection with
such work, on the project (other than service, maintenance or repairs) to be performed by or on behalf of the additional insured(s) at the location of the covered operations has been completed; or
b. That portion of "your work" out of which the
injury or damage arises has been put to its
intended use by any person or organization
other than another contractor or subcontractor engaged in performing operations for a principal as a part of the same project.

Policy Number: AES120346103
DocuSign Envelope ID: 0ADCE614-C0AD-4C2B-A24C-119E2D79E6E9 POLICY NUMBER: COMMERCIAL GENERAL LIABILITY
CG 20 37 07 04
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

CG 20 37 07 04 © ISO Properties, Inc., 2004 Page 1 of 1 ADDITIONAL INSURED – OWNERS, LESSEES OR
CONTRACTORS – COMPLETED OPERATIONS
This endorsement modifies insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE PART

SCHEDULE
Section II – Who Is An Insured is amended to
include as an additional insured the person(s) or
organization(s) shown in the Schedule, but only with
respect to liability for "bodily injury" or "property damage" caused, in whole or in part, by "your work" at the location designated and described in the schedule of this endorsement performed for that additional insured and included in the "products-completed
operations hazard".

Name of Additional Insured Person(s) or
Organization(s):

Location and Description of Completed
Operations
All persons or organizations where written contract with the Named Insured requires additional insured
completed operations coverage. This form does not
apply to your work on residential property
Information required to complete this Schedule, if not shown above, will be shown in the Declarations.

AES120346103
DocuSign Envelope ID: 0ADCE614-C0AD-4C2B-A24C-119E2D79E6E9 POLICY NUMBER: AES120346103 COMMERCIAL GENERAL LIABILITY NX GL 009 08 09
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

NX GL 009 08 09 Page 1 of 1
Includes copyrighted material of Insurance Services Office, Inc., with its permission

PRIMARY AND NON-CONTRIBUTING INSURANCE
(THIRD-PARTY)
This endorsement modifies insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE PART

SCHEDULE
Third Party:

All persons or organizations where required by written contract with the Named Insured (Absence of a specifically named Third Party above means that the provisions of this endorsement apply as required by written contractual agreement with any Third Party for whom you are performing work.) Paragraph 4. of SECTION IV: COMMERCIAL GENERAL LIABILITY CONDITIONS is replaced by the following:

4. Other Insurance:

With respect to the Third Party shown above, this insurance is primary and non-contributing. Any and all other valid and collectable insurance available to such Third Party in respect of work performed by you under written contractual agreements with said Third Party for loss covered by this policy, shall in no instance be considered as primary, co-insurance, or contributing insurance. Rather, any such other insurance shall be considered excess over and above the insurance provided by this policy.

DocuSign Envelope ID: 0ADCE614-C0AD-4C2B-A24C-119E2D79E6E9 POLICY NUMBER: AES120346103 COMMERCIAL GENERAL LIABILITY CG 24 04 05 09
CG 24 04 05 09 © Insurance Services Office, Inc., 2008 Page 1 of 1

WAIVER OF TRANSFER OF RIGHTS OF RECOVERY

AGAINST OTHERS TO US
This endorsement modifies insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE PART

PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART

SCHEDULE
Name Of Person Or Organization:

All persons or organizations where required by written contract with the Named Insured Information required to complete this Schedule, if not shown above, will be shown in the Declarations.

The following is added to Paragraph 8. Transfer Of
Rights Of Recovery Against Others To Us of
Section IV – Conditions:

We waive any right of recovery we may have against
the person or organization shown in the Schedule
above because of payments we make for injury or
damage arising out of your ongoing operations or
"your work" done under a contract with that person
or organization and included in the "productscompleted operations hazard". This waiver applies only to the person or organization shown in the
Schedule above.

DocuSign Envelope ID: 0ADCE614-C0AD-4C2B-A24C-119E2D79E6E9

INSURED COPY
- 1998 by the Workers’ Compensation Insurance Rating Bureau of California. All rights reserved.

From the WCIRB’s California Workers’ Compensation Insurance Forms Manual - 1999.

WORKERS COMPENSATION AND EMPLOYERS LIABILITY INSURANCE POLICY WC 04 03 06

WAIVER OF OUR RIGHT TO RECOVER FROM OTHERS ENDORSEMENT -

CALIFORNIA
We have the right to recover our payments from anyone liable for an injury covered by this policy. We will not enforce our right against the person or organization named in the Schedule. (This agreement applies only to the extent that you perform work under a written contract that requires you to obtain this agreement from us.) You must maintain payroll records accurately segregating the remuneration of your employees while engaged in the work described in the Schedule.

The additional premium for this endorsement shall be % of the California workers’ compensation premium otherwise due on such remuneration.

SCHEDULE

PERSON OR ORGANIZATION JOB DESCRIPTION
2 ANY PERSON OR ORGANIZATION FOR WHOM BLANKET WAIVER OF SUBROGATION

THE NAMED INSURED HAS AGREED BY

WRITTEN CONTRACT TO FURNISH THIS
WAIVER

DocuSign Envelope ID: 0ADCE614-C0AD-4C2B-A24C-119E2D79E6E9

CITY OF LAKE ELSINORE

TO BE POSTED IN A CONSPICUOUS PLACE
Business Name:

Business Location:

Owner Name(s):

BUSINESS LICENSE NO.

Issue Date: Expiration Date:

BUSINESS LICENSE
THIS IS YOUR LICENSE • NOT TRANSFERABLE
301 W DYER RD UNIT D Business Type:

SANTA ANA, CA 92707-3450

SAS CONSTRUCTION
301 W DYER RD UNIT D
SANTA ANA, CA 92707-3450
This business license is issued for revenue purposes only and does not grant authorization to operate a business. This business license is issued without verification that the holder is subject to or exempted from licensing by the state, county, federal government, or any other governmental agency.

Administrative Services - Licensing
130 South Main Street, Lake Elsinore, CA 92530
PH (951) 674-3124

SAS CONSTRUCTION

SEYED MOHAMMAD ALI SHAHABI

GENERAL BUILDING CONTRACTOR
028290
3/27/2024 3/31/2025
Starting January 1, 2021, Assembly Bill 1607 requires the prevention of gender-based discrimination of business establishments. A full notice is available in English or other languages by going to: https://www.dca.ca.gov/publications/ DocuSign Envelope ID: 0ADCE614-C0AD-4C2B-A24C-119E2D79E6E9 Certificate Of Completion
Envelope Id: 0ADCE614C0AD4C2BA24C119E2D79E6E9 Status: Completed Subject: Complete with DocuSign: SAS Construction - City Hall Concrete Footings & Foundation Bid Set A.pdf Source Envelope:

Document Pages: 35 Signatures: 5 Envelope Originator:

Certificate Pages: 5 Initials: 0 Carla Khalil
AutoNav: Enabled
EnvelopeId Stamping: Enabled
Time Zone: (UTC-08:00) Pacific Time (US & Canada)
130 S. Main Street
Lake Elsinore, CA 92530
[email protected]
IP Address: 76.79.110.130
Record Tracking
Status: Original
3/27/2024 3:26:38 PM
Holder: Carla Khalil
[email protected]
Location: DocuSign
Signer Events Signature Timestamp
Shannon Buckley
[email protected]
Assistant City Manager
Security Level: Email, Account Authentication
(None) Signature Adoption: Pre-selected Style
Using IP Address: 98.245.85.15
Signed using mobile
Sent: 3/27/2024 3:33:30 PM
Viewed: 3/29/2024 4:04:02 PM
Signed: 3/29/2024 4:05:33 PM
Electronic Record and Signature Disclosure:

Accepted: 3/29/2024 4:04:02 PM
ID: 5bbe0bb2-ee25-471c-b2eb-666d28cd5348
Barbara Leibold
[email protected]
City Attorney
Security Level: Email, Account Authentication
(None) Signature Adoption: Pre-selected Style
Using IP Address: 184.183.85.151
Sent: 3/29/2024 4:05:36 PM
Resent: 4/2/2024 9:34:35 AM
Viewed: 4/3/2024 9:56:33 AM
Signed: 4/3/2024 9:56:52 AM
Electronic Record and Signature Disclosure:

Accepted: 4/3/2024 9:56:33 AM
ID: b2e94308-087e-4bd0-9679-f4f538395b1f
Seyed Mohammad Ali Shahabi
[email protected]
Owner
Security Level: Email, Account Authentication
(None) Signature Adoption: Pre-selected Style
Using IP Address: 104.34.215.146
Sent: 4/3/2024 9:56:55 AM
Viewed: 4/3/2024 10:55:10 AM
Signed: 4/3/2024 10:55:51 AM
Electronic Record and Signature Disclosure:

Accepted: 4/3/2024 10:55:10 AM
ID: 6eca1c57-200e-4aa4-a9a0-815e00328f6a
Jason Simpson
[email protected]
City Manager
city of Lake Elsinore
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 104.28.85.126
Signed using mobile
Sent: 4/3/2024 10:55:54 AM
Viewed: 4/3/2024 10:59:20 AM
Signed: 4/3/2024 10:59:29 AM
Electronic Record and Signature Disclosure:

Accepted: 4/3/2024 10:59:20 AM
ID: b43b2d61-295c-4bc5-9c5b-afb7cd7f08da
Signer Events Signature Timestamp
Luz Reyes
[email protected]
Deputy City Clerk
City of Lake Elsinore
Delegate Of: Candice Alvarez
[email protected]
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 47.180.22.242
Sent: 4/3/2024 10:59:31 AM
Viewed: 4/3/2024 3:03:44 PM
Signed: 4/3/2024 3:05:22 PM
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
In Person Signer Events Signature Timestamp
Editor Delivery Events Status Timestamp
Agent Delivery Events Status Timestamp
Intermediary Delivery Events Status Timestamp
Certified Delivery Events Status Timestamp
Carbon Copy Events Status Timestamp
Luz Reyes
[email protected]
Deputy City Clerk
City of Lake Elsinore
Security Level: Email, Account Authentication
(None)
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15) Agreement with SAS Construction for the Interior, Exterior Wall and Ceiling Drywall and Insulation, Bid Set “H”, on the New City Hall Project (CIP Project No. Z20006) Approve and authorize the City Manager to execute a Public Works Construction Agreement with SAS Construction for an amount not to exceed $1,070,000.00 in such final form as approved by the City Attorney, authorize the City Manager to execute change orders not to exceed a 10% contingency amount of $107,000.00 for construction uncertainties and adjustments; and authorize the City Clerk to record the notice of completion once the entire scope of work is complete and return withheld retention to the contractor.

Page 1 of 2 ends

REPORT TO CITY COUNCIL
To: Honorable Mayor and Members of the City Council
From: Jason Simpson, City Manager
Prepared by: Shannon Buckley, Assistant City Manager
Date: June 24, 2025
Subject: Agreement with SAS Construction for the Interior, Exterior Wall and Ceiling Drywall and Insulation, Bid Set “H”, on the New City Hall Project (CIP Project No. Z20006)
Recommendation
Approve and authorize the City Manager to execute a Public Works Construction Agreement with SAS Construction for an amount not to exceed $1,070,000.00 in such final form as approved by the City Attorney, authorize the City Manager to execute change orders not to exceed a 10% contingency amount of $107,000.00 for construction uncertainties and adjustments; and authorize the City Clerk to record the notice of completion once the entire scope of work is complete and return withheld retention to the contractor.

Background
Construction bid documents were prepared and the project was advertised for bid in accordance with the requirements set forth in the California Public Contract Code. On May 8, 2025, the City posted on PlanetBids the notice inviting bids for the City Hall project interior, exterior wall and ceiling drywall and insulation (CIP Project No. Z20006). On Wednesday, May 21, 2025, a mandatory site visit, and job walk was conducted at the project site. Following the job walk all responses to the notice inviting bid questions were posted in PlanetBids. During the open bid time frame 18 prime contractors reviewed the bid document and 10 contractors attended the mandatory job walk on May 21, 2025. However, on the bid date deadline of June 4, 2025, one bid was submitted on or before the deadline. The bid was reviewed in PlanetBids, examined, and declared in City Hall. The bid result was posted in PlanetBids shortly after staff’s review. Following the examination of the bid, the bidder, SAS Construction, was reviewed and interviewed by staff and determined complete.

SAS Construction Drywall and Insulation Agreement

Page 2 of 2 ends

Discussion
The SAS Construction bid satisfies all the scope of work requirements for the interior, exterior wall, and ceiling drywall and insulation notice inviting bid. Staff interviewed prospective bidders to learn why they did not submit a bid. Nearly all companies interviewed stated that the scope of work was too large and required a large financial cash flow. The informal interviews learned that these non-bidders were contemplating bid submittals over $1.5 million. With this information, staff are confident the SAS Construction bid is highly competitive.

The interior, exterior wall, and ceiling drywall and insulation work will begin immediately following the completion of all wiring and plumbing installation. In this construction agreement, the key elements will include the following items:
• Mobilization and Demobilization, Including Construction Schedules • (Not To Exceed 3% of Total Bid)
• Labor Material Bond and Performance Bond
• Drywall, Drywall Tape and Mud, and Drywall Finish Texture • Sound Insulation of all Walls, Ceilings and Third Floor Roof Fiscal Impact
Funding costs are included in the Fiscal Year 24/25 – 28/29 Capital Improvement Plan (CIP) budget, CIP Project #Z20006.

Attachments
Attachment 1 – Agreement
Exhibit A - Proposal
City Manager's Office
1 Agreement No. __________

AGREEMENT FOR PUBLIC WORKS CONSTRUCTION
SAS Construction
For the
City Hall Concrete Interior,
Exterior Wall & Ceiling
Drywall & Insulation, Bid
Set ‘H’
CIP PROJECT NO. Z20006
This Agreement for Public Works Construction (“Agreement”) is made and entered into as of June 24, 2025 by and between the City of Lake Elsinore, a municipal corporation (“City”) and SAS Construction (“Contractor”).

The City and Contractor, in consideration of the mutual promises and covenants set forth herein, agree as follows:

1. The Project and Project Documents. Contractor agrees to construct the following public improvements (“work”) identified as:

City Hall City Hall Concrete Interior, Exterior Wall & Ceiling Drywall & Insulation, Bid Set ‘H’(the “Project”)
The City-approved plans for the construction of the Project, which are incorporated herein by reference and prepared by Staff, are identified as:

Bid Set ‘H’, Interior, Exterior Wall & Ceiling Drywall & Insulation The Project Documents include this Agreement and all of the following: (1) the Notice Inviting Bids, Instructions to Bidders, Bid Documents including Bidder’s Proposal as submitted by the Contractor, Contract Documents, General Specifications, Special Provisions, and all attachments and appendices; (2) everything referenced in such documents, such as specifications, details, standard plans or drawings and appendices, including all applicable State and Federal requirements; (3) all required bonds, insurance certificates, permits, notices, and affidavits; and (4) any and all addenda or supplemental agreements clarifying, amending or extending the work contemplated as may be required to insure completion in an acceptable manner. All of the provisions of the above-listed documents are made a part of this Agreement as though fully set forth herein.

2. Compensation.
a. For and in consideration of the payments and agreements to be made and performed by City, Contractor agrees to construct the Project, including furnishing all materials and performing all work required for the Project, and to fulfill all other obligations as set forth in the Bidder’s Proposal, such contract price being one million seventy thousand dollars and no cents ($1,070,000.00).
2 b. City hereby promises and agrees to employ, and does hereby employ, Contractor to provide the materials, do the work, and fulfill the obligations according to the terms and conditions herein contained and referred to, for the prices set forth, and hereby contracts to pay the same at the time, in the manner, and upon the conditions set forth in the Project Documents.
c. Contractor agrees to receive and accept the prices set forth in the Bidder’s Proposal as full compensation for furnishing all materials, performing all work, and fulfilling all obligations hereunder. Such compensation shall cover all expenses, losses, damages, and consequences arising out of the nature of work during its progress or prior to its acceptance including those for well and faithfully completing the work and the whole thereof in the manner and time specified in the Project Documents; and also including those arising from actions of the elements, unforeseen difficulties or obstructions encountered in the prosecution of the work, suspension or discontinuance of the work, and all other unknowns or risks of any description connected with the work.

3. Completion of Work.
a. Contractor shall perform and complete all work within 65 working days from the date of commencement specified in the Notice to Proceed, and shall provide, furnish and pay for all the labor, materials, necessary tools, expendable equipment, and all taxes, utility and transportation services required for construction of the Project. b. All work shall be performed and completed in a good workmanlike manner in strict accordance with the drawings, specifications and all provisions of this Agreement as hereinabove defined and in accordance with applicable laws, codes, regulations, ordinances and any other legal requirements governing the Project.
c. Contractor shall not be excused with respect to the failure to so comply by any act or omission of the City, the City Engineer, a City inspector, or a representative of any of them, unless such act or omission actually prevents the Contractor from fully complying with the requirements of the Project Documents, and unless the Contractor protests at the time of such alleged prevention that the act or omission is preventing the Contractor from fully complying with the Project Documents. Such protest shall not be effective unless reduced to writing and filed with the City within three (3) working days of the date of occurrence of the act or omission preventing the Contractor from fully complying with the Project Documents. d. City and Contractor recognize that time is of the essence in the performance of this Agreement and further agree that if the work called for under the Agreement is not completed within the time hereinabove specified, damages will be sustained by the City and that, it is and will be impracticable or extremely difficult to ascertain and determine the actual amount of damages the City will sustain in the event of, and by reason of, such delay. It is, therefore, agreed that such damages shall be presumed to be in the amount of $1,000 per calendar day, and that the Contractor will pay to the City, or City may retain from amounts otherwise payable to Contractor, such amount for each calendar day by which the Contractor fails to complete the work, including corrective items of work, under this Agreement within the time hereinabove specified and as adjusted by any changes to the work. 3 4. Changes to Work. City and Contractor agree that the City may make changes to the work, or suspend the work, and no matter how many changes, such changes or suspensions are within the contemplation of the Contractor and City and will not be a basis for a compensable delay claim against the City nor be the basis for a liquidated damage claim against the Contractor.

8. Indemnity. Contractor shall indemnify, defend, and hold harmless the City and its officials, officers, employees, agents, the County and Board Supervisors, and volunteers from and against any and all losses, liability, claims, suits, actions, damages, and causes of action arising out of any personal injury, bodily injury, loss of life, or damage to property, or any violation of any federal, state, or municipal law or ordinance, to the extent caused, in whole or in part, by the willful misconduct or negligent acts or omissions of Contractor or its employees, subcontractors, or agents, by acts for which they could be held strictly liable, or by the quality or character of their work. The foregoing obligation of Contractor shall not apply when (1) the injury, loss of life, damage to property, or violation of law arises from the sole negligence or willful misconduct of the City or its officers, employees, agents, or volunteers and (2) the actions of Contractor or its employees, subcontractor, or agents have contributed in no part to the injury, loss of life, damage to
4 property, or violation of law. It is understood that the duty of Contractor to indemnify and hold harmless includes the duty to defend as set forth in Section 2778 of the California Civil Code.

Acceptance by City of insurance certificates and endorsements required under this Agreement does not relieve Contractor from liability under this indemnification and hold harmless clause.

Certificates of such insurance shall be filed with the City on or before commencement of 6 performance of this Agreement. Current certification of insurance shall be kept on file with the City at all times during the term of this Agreement.

If to City: City of Lake Elsinore
Attn: City Manager
130 South Main Street
Lake Elsinore, CA 92530
With a copy to: City of Lake Elsinore
Attn: City Clerk
130 South Main Street
Lake Elsinore, CA 92530
If to Contractor: SAS Construction
Attn: Seyed Mohammad Ali Shahabi
301 West Dryer Rd Unit D
Santa Ana CA 92707

12. Amendments. This Agreement may be modified or amended only by a written document executed by both Contractor and City and approved as to form by the City Attorney.

14. Waiver. Waiver of a breach or default under this Agreement shall not constitute a continuing waiver of a subsequent breach of the same or any other provision under this Agreement.

16. Controlling Law Venue. This Agreement and all matters relating to it shall be governed by the laws of the State of California and any action brought relating to this Agreement shall be held exclusively in a state court in the County of Riverside. 7 17. Litigation Expenses and Attorneys’ Fees. If either party to this Agreement commences any legal action against the other party arising out of this Agreement, the prevailing party shall be entitled to recover its reasonable litigation expenses, including court costs, expert witness fees, discovery expenses, and attorneys’ fees.

22. Prevailing Wages.
a. Contractor and all subcontractors shall adhere to the general prevailing rate of per diem wages as determined and as published by the State Director of the Department of Industrial Relations pursuant to Labor Code Sections 1770, 1773, and 1773.2. Copies of these rates and the latest revisions thereto are on file in the office of the City Clerk of the City of Lake Elsinore and are available for review upon request. 8 b. Contractor's attention is directed to the provisions of Labor Code Sections 1774, 1775, 1776, 1777.5 and 1777.6. Contractor shall comply with the provisions of these Sections. The statutory provisions for penalties for failure to comply with the State's wage and the hours laws will be enforced.
c. Labor Code Sections 1774 and 1775 require the Contractor and all subcontractors to pay not less than the prevailing wage rates to all workmen employed in the execution of the contract and specify forfeitures and penalties for failure to do so. The minimum wages to be paid are those determined by the State Director of the Department of Industrial Relations. Labor Code Section 1776 requires the Contractor and all subcontractors to keep accurate payroll records, specifies the contents thereof, their inspection and duplication procedures and certain notices required of the Contractor pertaining to their location. The statutory penalties for failure to pay prevailing wages will be enforced. If the Project has been awarded to Contractor on or after April 1, 2015, Contractor and its subcontractors must furnish electronic certified payroll records to the Labor Commissioner. Beginning January 1, 2016, Contractor and its subcontractors must furnish electronic certified payroll records to the Labor Commissioner without regard to when the Project was awarded to Contractor. d. Labor Code Section 1777.5 requires Contractor or subcontractor employing tradesmen in any apprenticeable occupation to apply to the Joint Apprenticeship Committee nearest the site of the public works project, which administers the apprenticeship program in that trade for a certificate of approval. The certificate will also fix the ratio of apprentices to journeymen to be used in the performance of the Agreement. The Contractor is required to make contributions to funds established for the administration of apprenticeship programs if the Contractor employs registered apprentices or journeymen in any apprenticeable trade and if other contractors on the public works site are making such contributions.

23. Execution. This Agreement may be executed in several counterparts, each of which shall constitute one and the same instrument and shall become binding upon the parties when at least one copy hereof shall have been signed by both parties hereto. In approving this Agreement, it shall not be necessary to produce or account for more than one such counterpart. [Signatures on next page]
9 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the date first written above.
“CITY”
CITY OF LAKE ELSINORE, a municipal
corporation
“CONTRACTOR”
SAS Construction
City Manager
ATTEST:

By: Seyed Mohammad Ali Shahabi
Its: Owner
City Clerk
APPROVED AS TO FORM:

By: Click or tap here to enter text.

Its: Click or tap here to enter text.

City Attorney
Assistant City Manager

EXHIBIT A
CONTRACTOR’S PROPOSAL
[ATTACHED]

EXHIBIT B

LIST OF SUBCONTRACTORS
[ATTACHED]
C-2
BIDDER’S PROPOSAL

CITY HALL BUIDLING
CIP PROJECT NO. Z20006
BID SET “D” INTERIOR, EXTERIOR WALL & CEILING DRYWALL, AND INSULATION Company: ___________________________________________________________________ Honorable Mayor Members of the Council:

In accordance with the Notice Inviting Bids pertaining to the receiving of sealed proposals by the City Clerk of the City of Lake Elsinore for the above titled improvement, the undersigned hereby proposes to furnish all Work to be performed in accordance with the Specifications, Standard Drawings, and the Contract Documents, for the unit price or lump sum set forth in the following schedule:

A bidder may elect to bid all three schedules (A, B & C) or just one schedule. The lowest most complete separated bid will be selected for contracting. It is possible for a bidder to receive all three bids or just one.

BID SCHEDULE A –
Item No. Description Lump Sum ($) Total Bid ($)
1 Mobilization & Demobilization Including Construction
Schedules
(Not To Exceed 3% of Total Bid)
$ $
2 Labor and Material Bond and Performance Bond $ $
3 Drywall - Interior, Exterior Wall and Ceilings, Labor $ $ 4 Drywall - Interior, Exterior Wall and Ceilings, Material $ $ 5 Drywall Tape, Mud, Texture- Interior, Exterior Wall
and Ceilings, Labor
$ $
6 Drywall Tape, Mud, Texture-- Interior, Exterior Wall
and Ceilings, Material
$ $
7 Sound Insulation - Interior, Exterior and Ceilings,
Labor
$ $
8 Sound Insulation - Interior, Exterior and Ceilings,
Material
$ $
9 3rd Floor Roof Sound Insulation – Labor and Material $ $ SCHEDULE A Total Bid: ___________________________________________________________ (Figures*)
SCHEDULE A Total Bid: ___________________________________________________________ (Words*)

SAS CONSTRUCTIONS
150,000.00
250,000.00
250,000.00
150,000.00
150,000.00
25,000.00
25,000.00
50,000.00
20,000.00
25,000.00
25,000.00
250,000.00
50,000.00
250,000.00
150,000.00
150,000.00
150,000.00
20,000.00
$1,070,000.00

ONE MILLION SEVENTY THOUSAND DOLLARS
C-3
*BID MAY BE REJECTED IF TOTAL IS NOT SHOWN FOR BOTH FIGURES AND WORDS.

The undersigned agrees to enter into and execute a contract, with necessary bonds, at the unit prices set forth herein and in case of default in executing such contract, with necessary bonds, the check or bond accompanying this bid and the money payable thereon shall be forfeited thereby to and remain the property of the City of Lake Elsinore.

The above unit prices include all work appurtenant to the various items as outlined in the Contract Documents and all work or expense required for the satisfactory completion of said items. In case of discrepancies between unit prices and totals, the unit prices shall govern.

The undersigned declares that it has carefully examined the Specifications, and Contract Documents, and has investigated the site of the work and is familiar with the conditions thereon.

Contractor
Date: By:

Contractor’s State License No.:

Class:

Address:

Phone:

FAX:

SAS CONSTRUCTIONS
06/04/2025
1127847
B, C10

SEYED MOHAMMAD ALI SHAHABI
301 WEST DYER RD
UNIT D SANTA ANA CA 92707
949-800-9247
16) Purchase of a Back-up Generator from Quinn Caterpillar for the New City Hall Project (CIP No. Z20006)
Approve and authorize the City Manager to execute a purchase order with Quinn Caterpillar for a back-up generator for the new City Hall Project (CIP Project #Z20006) in an amount not to exceed $113,545.45.

Page 1 of 2 ends

REPORT TO CITY COUNCIL
To: Honorable Mayor and Members of the City Council
From: Jason Simpson, City Manager
Prepared by: Shannon Buckley, Assistant City Manager
Date: June 24, 2025
Subject: Purchase of a Back-up Generator from Quinn Caterpillar for the New City Hall Project (CIP No. Z20006)
Recommendation
Approve and authorize the City Manager to execute a purchase order with Quinn Caterpillar for a back-up generator for the new City Hall Project (CIP Project #Z20006) in an amount not to exceed $113,545.45.

Background
The purpose of this report is to recommend the purchase of a reliable and robust backup generator for the new City Hall to ensure uninterrupted operation of essential systems during power outages. This initiative aligns with the City’s commitment to sustainable infrastructure and operational resilience. The new City Hall is designed to serve as a critical hub for municipal operations, public services, and community response coordination. It is imperative that essential functions such as communication systems, security, lighting, HVAC, and IT infrastructure remain operational during any power outage. A dependable backup generator is crucial to achieve this objective.

Staff conducted an extensive review of generator manufacturers capable of supplying reliable equipment that meets the City's sustainability and performance requirements. The research focused on identifying generators that integrate seamlessly with the existing infrastructure plans while providing efficiency and durability.

Back-Up Generator New City Hall

Page 2 of 2 ends

Discussion
The following key criteria were emphasized during the review process to ensure the selection of the most suitable generator:

Reliability: The generator must provide uninterrupted power to critical systems during outages.

Capacity: The generator must meet the power demands of all essential systems in City Hall.

Efficiency: A strong focus on fuel efficiency and reduced environmental impact.

Integration: Compatibility with existing and planned infrastructure.

Resilience: Ability to operate under varying conditions with minimal maintenance.

Sustainability: Alignment with the City’s environmental goals, including reduced emissions and noise levels.

Staff review identified several manufacturers capable of meeting the City's requirements. Among these, the preferred generator models demonstrated superior performance in reliability, fuel efficiency, and operational resilience. These models also provide advanced monitoring and control systems, ensuring that City Hall staff can manage power supply effectively during outages. Staff have conducted research on various generator manufacturers to conclude that the Caterpillar generator is also available on the National Buy Board (Sourcewell, Contract # 092222- CAT) through the Quinn Cat dealership. Here, the City is receiving a Sourcewell Product Discount of 31% ($26,444.55) off the generator list price. Utilizing the buy board (Sourcewell) considerably reduces administrative time, purchases directly from the manufacturer, on a pre-determined competitive price schedule, and avoids any additional mark-ups.

The basic purchase is for the new Caterpillar, Model C9 GC, EPA Tier 3, stationary emergency generator set is rated at 300kWh standby power, 60Hz, 3 phase 277/480V configuration. This Caterpillar genset is pre-certified with the local air board (SCAQMD), and it replaces an existing standby generator for the facility. This generator will:
• Ensure uninterrupted operation of essential systems during power outages. • Support emergency response efforts by maintaining communication and coordination capabilities.
• Protect the City Hall’s structural and technological investments from potential power-related damage.
• Demonstrate the City’s commitment to sustainability and operational excellence.

Fiscal Impact
The cost is provided for in the City Hall Project Budget.

Attachments
Attachment 1 - Quotation No. 250400-Well (rev. 1)
City Manager's Office
QUOTATION NO. 250400-WELL REV1
3500 Shepherd Street, City of Industry, California 90601 Box 226789, Los Angeles, California 90022-0744
(562) 463-6000 Fax: (562) 463-7156 Date: June 4, 2025 Page: 1 of 5 To: Contact: Gus Papagolos Terms: Net 30, see T&C’s
Company: ProStaff LLC, C/O City of Lake Elsinore F.O.B. Jobsite, unloading by others Address: Sales Rep.: Art Jimenez
City, Zip: Contact #: 951-250-5104
Phone: 951-764-2417 Email: [email protected] Email: [email protected] Project Name: City of Lake Elsinore – City Hall Generator Replacement Qty: Description List Price Discount Price
1 New Caterpillar, Model C9 GC, EPA Tier 3, Stationary Emergency Generator Set.

Rated 300kW Standby Power, with fan, 60Hz, 3 Phase 277/480V Configuration at 1800 RPM.

Sourcewell Product Discount is 31% (- $ 26,444.55) off Generator List Price. $ 85,305.00 $ 58,860.45 NON CAT ITEMS:

Inbound/ Outbound Freight (Freight to Jobsite)
Technician Startup – Level 1/ Using Site Loads (1 Day)
Diesel Particulate Filter & Insulation (Critical Grade DPF/ Ship Loose) DPF Back Pressure Monitor (Integrated)
SCAQMD Permit to Construct/ WITH DPF / No Public Notification/ Non-expedited

TOTAL PRICE FOR THE ABOVE LISTED NON CAT ITEMS
$ 5,955.00
$ 4,170.00
$ 27,325.00
$ 6,550.00
$ 10,715.00
$ 54,715.00

“Buyer has to put "Sourcewell Contract # 092222-CAT" on the Purchase Order” SALES TAX NOT INCLUDED. Buyer responsible for all taxes including any applicable tire fees. The quotation provided herein is for information only, and is not a valid offer to sell unless signed by an officer of Quinn Power Systems in the space provided below. Any offer to sell or any offer accepted shall be subject to the Terms and Conditions page. Unless expressly stated on the face of this quotation, all prices, delivery schedules and product specifications are subject to change without notice. Quotation is good for 30 days from quote date above, expires after that duration.

Total Price
(SALES TAX NOT
INCLUDED):
$ 113,545.45
QUOTATION NO. 250400-WELL REV1
3500 Shepherd Street, City of Industry, California 90601 Box 226789, Los Angeles, California 90022-0744
(562) 463-6000 Fax: (562) 463-7156 Date: June 4, 2025 Page: 2 of 5

PRODUCT DESCRIPTION
Generator & Accessories:
300KW Caterpillar Diesel Standby Generator (Model C9 GC) Tier 3 Emissions Cert
UL2200 Listed Package Genset
NFPA 110 Approved
Open Genset (NO ENCLOSURE)
Integral Fuel Tank – 600 Gallons (24hrs Run Time @ 100% load) DPF (Passive Type/ Ship Loose/ Integrated)
Alternator – 105C Temp Rise Over 40C Ambient
GCCP Control Panel
Panel Mounted Audible Alarm
Fuel Level Indication
Electronic Governor
Integrated Voltage Regulator
Circuit Breaker – 600 Amp
Battery and Cables
Battery Charger
Coolant Heater
Standard Air Cleaner
Standard Radiator
Operations & Maintenance Manuals (1 Copy)
Includes Freight to Jobsite
Startup Service – Level 1 (Using Site Loads)
1Yr CVA (Customer Value Agreement)
5Yr Standby Warranty (500hrs/ year max operation)

Specifications
This quote is based on our understanding of your site requirements.

Clarifications
Quinn Power Systems and Caterpillar will make every effort to meet the project delivery schedule requirements. However, do to the ongoing global supply chain disruptions, Quinn Power Systems will not be liable or accept any liquidated damage clause on a purchase order.

Install cost does not include the following:

Any unforeseen jobsite or city requirements that may add additional cost to this project.

Accessories and/or modifications
Initial fill of coolant and lube oil
(1 set) Operation & Maintenance manuals (electronic copy) * (additional sets, at additional cost) QPS field work
Delivery to jobsite (offload/crane service by others)
Basic Demonstration – [included at no charge if training can be accomplished at time of startup].

Not included (unless mentioned in the bill of materials) Sales tax
Building or construct permits
Diesel fuel, initial fill or for testing
QUOTATION NO. 250400-WELL REV1
3500 Shepherd Street, City of Industry, California 90601 Box 226789, Los Angeles, California 90022-0744
(562) 463-6000 Fax: (562) 463-7156 Date: June 4, 2025 Page: 3 of 5 Availability:

Submittals: Estimated (8 – 10 Weeks) on receipt and approval of purchase order. (1 electronic copy). Submittal approval is expected not to exceed 60 days, additional time beyond 60 days will impact equipment delivery schedule, and may result in equipment price increases. In such event, a revised purchase order will be required prior to factory order production release.

Equipment: Estimated (24 – 28+ Weeks) for factory build time after submittal approval (without DPF).

Modifications: Estimated (Additional time TBD) additional time will vary depending on 3rd party or Quinn shop schedule and scope of work.

Not included: Unforeseen factory delays, transit time from factory or vendor and/or delays due to project site readiness. ** Equipment prices and lead times are subject to change without notice.**

EMISSIONS NOTE
 "California Air Resources Board (CARB) has approved alignment with the federal New Source Performance Standards (NSPS). Such alignment allows for emergency standby engines to be exempt from Tier 4 emissions standards; however, local air districts can require more stringent emissions control. The prospective buyer of the equipment quoted above is hereby notified the NSPS exemption does not apply to non-emergency standby engines (e.g. prime power applications such as peak shaving, parallel operation with the grid, or storm avoidance), or portable engines, even if used for emergency standby. Consult the local air district for permitting requirements and required emissions controls. Presently, South Coast Air Quality Management District (SCAQMD) Rule 1470 requires the use of a particulate filter if an engine is located within 100 meters of a school, and may require either a diesel particulate filter or an oxidation catalyst, depending upon engine size, if the installation is within 50 meters of a sensitive receptor. Particulate filters may also be required for Title V and major polluting facilities. For emissions requirements specific to the project for which this engine is being quoted, please contact SCAQMD at 909-396-2000. Unless otherwise listed above a DPF is not included in this proposal, please call for quotation if a DPF is required for this project.”  Caterpillar engines require a minimum of 30% load to prevent engine damage due to wet-stacking. Depending upon the permit and site specific conditions, SCAQMD emergency engine permits will only allow between 20 and 50 hours of runtime per year for non-emergency applications such as testing and exercising. Passive Diesel Particulate Filter systems depend on generator loading of a minimum of 50-60% to achieve minimum exhaust temperature threshold to keep soot regeneration and the filter backpressure within acceptable levels. If the engine will be operated consistently at low loads/low exhaust temperatures, the customer should make provisions to add load via facility operations or a load bank. Active Diesel Particulate Filter systems require no external load in order to regenerate. If listed above, Passive DPF option pricing, does not include a load bank or a load bank circuit breaker. If a load bank is needed for this project, please call for quotation.

TERMS AND CONDITIONS

1. Acceptance of Order.

This Quotation is for Buyer's information only and is not a valid offer to sell unless signed by an authorized representative of Seller in the place provided on the face of this Quotation. Prices, terms and conditions in an order from Buyer, which are inconsistent with the prices, terms and conditions of this Quotation, will be rejected by Seller, and are of no force and effect unless accepted in writing by Seller. Prices, delivery schedules and the scope of work on this Quotation are subject to change at Seller’s discretion.

2. Liability.

Seller's liability on any claim of any kind, including claims for negligence, or for any loss or damage arising out of or connected with the manufacture, sale, delivery, installation, resale or use of any products covered by or furnished under any order connected with this Quotation shall be limited to those claims arising solely from the acts of Seller and Seller shall in no way be liable for any special, indirect, incidental or consequential damages. The term “consequential damages” shall include, but not be limited to, loss of anticipated profits, business interruption, loss of use, revenue, reputation and data, costs incurred, including without limitation, for capital, fuel, power and loss or damage to property or equipment. Buyer expressly acknowledges and agrees that Seller has set its prices in reliance upon the limitations of liability and other terms and conditions specified herein, which allocate the risk between Seller and Buyer and form a basis of this bargain between the parties. Any claims against Seller for shortages in shipments shall be made in writing to Seller within fifteen (15) days of receipt of shipment by Buyer. Unless otherwise provided for in writing, Seller's responsibility for shipment ceases upon delivery to carrier, and any claims for shortage, delays or damage occurring thereafter shall be made direct to carrier by Buyer. Seller shall not be liable for any delays in delivery attributable to strikes, labor disputes, lockouts, accidents, fires, delays in manufacture or in transportation, delays in delivery of component materials, floods, severe weather, or Acts of God, embargoes, governmental actions, or any other cause beyond the reasonable control of Seller. Seller shall not indemnify nor be liable to Buyer, Buyer’s assigns, successors, purchasers, lessees or licensees, or to any person or entity for any claims, losses, expenses or judgments arising out of or resulting in any way from the product or integration of compatibility of the product with any other components, processes, facilities or equipment that does not comply with the equipment manufacturer(s)’s recommendations.

3. Shipments.

Unless otherwise specified, all risk of loss from the goods shall shift to Buyer at such time as the goods are delivered to a carrier for shipment to Buyer. Unless otherwise specified, shipment dates are approximate and all quoted prices exclude shipping costs. Shipment of goods under any order accepted by Seller shall be subject to the approval by Seller of Buyer’s financial condition at the time of shipment.

Whether or not terms of payment are specified elsewhere, Seller may, at its option, condition shipments under any order accepted by Seller upon receipt of satisfactory security or of cash prior to shipment. If, at Buyer’s request, shipment of goods under any order accepted by Seller is delayed more than thirty (30) days after the shipment date specified in the order, or the date the goods are ready for shipment, whichever is later, Seller will require immediate payment in full and/or assess additional charges for the expenses incident to such delay.

4. Termination.

In the absence of a written agreement between Buyer and Seller expressing different terms and conditions as to termination, any order accepted by Seller may be terminated prior to completion by Buyer only upon written notice to Seller and payment of Seller’s termination charges. If notice of termination is received by Seller after Seller has committed to buy the principal components for any order, termination charges shall include all direct and indirect costs incurred by Seller and the total profit anticipated by Seller. Additionally, Buyer’s instruction to Seller to stop work for thirty (30) days during the time specified for performance in any order may be construed by Seller as the equivalent of written notice of termination from Buyer and previous stipulations will be in effect.

5. Taxes.

Unless expressly stated, Seller's prices do not include sales, use, excise or similar taxes, which Seller may be required to pay in filling Buyer's order. The amount of any applicable tax shall be paid by Buyer as an additional charge unless specifically included in any order accepted by Seller, or in lieu thereof, Buyer shall provide Seller with a tax exemption certificate acceptable to the taxing authorities.

6. Patents.

Seller shall, at its own expense, defend and save Buyer harmless from the expenses and consequences of any suit or procedure brought against Buyer, based on a claim that the use or sale of goods specified in any order accepted by Seller constitutes an infringement of any United States letters of patent in existence on the date of any such order; provided Buyer promptly notifies Seller in writing of such claim and gives the necessary authorization, information and assistance for the defense of such a claim.

7. Changes.

Seller, and Seller's suppliers, may, at any time, without notice to Buyer, make changes (whether in design, materials, the addition of improvements, or otherwise) in any goods specified in any order accepted by Seller without incurring any obligation of any kind as a result thereof, but only to the extent that such change does not cause the goods specified to fail to meet Buyer's requirements. Buyer may, in its order, provide for changes in its requirements with provision for a corresponding equitable change in the price, if any; but in no instance shall Buyer make changes, which are substantially different from the scope of the original order accepted by Seller.

8. Export Sales.

In the event the goods and services specified in any order accepted by Seller are for export, the Buyer shall be responsible for securing export, import and other licenses or authorizations as may be required.

The conditions specified in this Section apply to all export transactions. This transaction is only for the sale of the equipment requested and detailed in this Quotation. Not included is any startup assistance, fieldtesting, training or any other services that might be required on site. Also not included is any installation, installation audits, sea trials (if applicable), or installation materials. To ensure proper application, installation, and warranty integrity, Buyer is encouraged to contact the applicable Caterpillar Dealer for these services. The costs of these services are not included in the sale price nor will Seller be responsible for any such related costs.

QUOTATION NO. 250400-WELL REV1
3500 Shepherd Street, City of Industry, California 90601 Box 226789, Los Angeles, California 90022-0744
(562) 463-6000 Fax: (562) 463-7156 Date: June 4, 2025 Page: 4 of 5

9. Permits for Equipment Design, Installation and Operation.

As a supplier of equipment, disclaims responsibility for any and all permits or licenses necessary to design, install and operate the equipment due to zoning, air quality, environmental, safety, building or construction codes or use permits pertaining to Buyer’s particular application of such equipment or any similar type of permit. Special attention should be given to the requirements of local air district rules and California Air Resources Board (CARB) regulations pertaining to permit requirements. Seller is quoting on equipment based on the specifications set forth in this Quotation. If additional equipment or engine modifications are required beyond the specifications, such as additional equipment required for compliance by a local air district or CARB, those items are not included and are the responsibility of Buyer. For example, South Coast AQMD (SCAQMD) Rule 1470 may require controls and limits on particulate matter, especially when the engine installation is within 100-meters from a school, or within 50 meters of a sensitive receptor (defined in Rule 1470). Ultra low sulfur fuel is required for particulate filters. CARB Diesel Fuel, or other CARB-approved alternative fuel, is also required for compression ignition (CI) engines operated in California. When indicated in the bill of materials, the proposed equipment may be SCAQMD pre-approved as Certified Equipment. This certification does not eliminate the permit process or responsibility of others to obtain a permit. Procurement of certified equipment assures permitability, reduces the permit processing fees and reduces the time necessary to obtain the permit through SCAQMD.

10. Start-up, Commissioning and Operating Requirements.

Equipment provided in this Quotation may require start-up and commissioning, including inspection(s), to ensure the equipment is installed in accordance with manufacturer(s)’s recommendations and specifications. If Seller has commissioned the equipment, Buyer agrees not to modify the design or components of the installation such that the modifications would violate any legal requirements of the installation, or would cause the installation to deviate from manufacturer(s)’s recommendations and specifications. Buyer acknowledges and agrees that, with respect to products sold to Buyer in connection with this Quotation, Buyer shall have the sole responsibility to ensure the products are properly installed, operated and maintained in accordance with the manufacturer(s)’s recommendations and specifications, and to determine and comply with all applicable Federal, state, local and regulated use restrictions and requirements, including, without limitation, the continuing responsibility to ensure that the use of product is in full compliance with all applicable environmental laws and regulations. Failure to install, operate and maintain the products in accordance with the manufacturer(s)’s recommendations and specifications will invalidate any applicable manufacturer’s warranty.

11. Additional material.

Only those items listed in this Quotation are included with any order. For example, unless specifically identified in this Quotation, the following items are not included with any purchased equipment: any exhaust or fuel piping, main fuel tank, fuel, duct work, special tools, insulation, wiring, cable, bus duct, concrete, anchor bolts, rigging or any material or labor incidental to the installation itself. Buyer specifically assumes responsibility for the provision of any such items if not specifically identified in the Quotation.

12. Hours of services.

When included, delivery, startup assistance, field testing, training or any other services required on site will be provided during the normal weekday working hours of 7:00 am to 4:30 pm. Delivery or services occurring at any other time, weekends or holidays is subject to premium charges.

13. Warranty.

The equipment manufacturer's warranty is the only warranty provided in connection with the equipment described in this Quotation. Buyer is responsible for operating and maintaining the equipment as specified by the manufacturer. The manufacturer’s warranties are exclusive and in lieu of all other warranties either oral or written, express or implied, including but not limited to any warranty of merchantability or fitness for a particular purpose. Seller is not a manufacturer and makes no warranty and shall not, under any circumstances, be liable for any indirect or special, incidental or consequential damages including but not limited to loss of production, loss of profit, loss of use or business interruption, or any other economic loss, whether arising from contract, tort, strict liability or any other theory of law. Buyer, Buyer’s assigns, successors, purchasers or any other person designated to operate the equipment as the end user, is responsible for operating the equipment in accordance with manufacturer(s)’s recommendations and specifications. Failure to perform all scheduled maintenance may result in damage to the equipment, and may be grounds to deny warranty coverage.

14. Terms.

Terms of payment are due upon receipt of invoice with no deductions of any kind for retentions, setoffs, discounts or other similar items. A finance charge of 1.5% per month (not to exceed the maximum allowed by law) will be charged on all past due invoices. When necessary Seller will file a California “Preliminary 20-day notice” pursuant to Section 3097 of the California Civil Code.

15. Cost additives.

A: Unit Cost.

Quotation prices are valid for 30 days only and are based on current market prices as of date of quotation. The Seller reserves the right to adjust the final invoice with a price escalation up to 6% due to 1) purchase orders being received after expiration of quotation, 2) fluctuations in raw materials market prices at time of order, 3) labor rate increases at time of scheduled field services, 4) delays in submittal approvals and/or release of equipment or 5) additional items or services provided that were not included as part of the original quotation. Since final invoicing can and may take place up to a year or more from original quotation date.

B: Delays.

If delivery is delayed by customer Buyer beyond original shipment date, purchase price is due 30 days after original shipment date and a storage and handling charge will be applied and is due each month until delivery. Finance charge of 1.5% per month (not to exceed the maximum allowed by law) is applicable on any amounts arising hereunder or in connection herewith that are not paid when due.

C: Start up.

If construction of the facility or other delays are experienced or expected, which prohibit the initial startup of the equipment beyond one year from delivery additional costs may be imposed including, but not be limited to, long term storage preparation, inspection charges, parts, service, etc.

16. Lead Times.

Lead times are based on manufactures estimated timetables. Project completion time may vary due to delays in receipt of purchase orders, submittal approval, release of equipment, manufactures unforeseen delays in production or holiday schedules. Project completion time frame cannot be guaranteed. Back orders will be processed as soon as available. Part number changes may be made to provide latest improved interchangeable items of equipment.

17. Governing Law and Venue.

The rights and obligations of the parties with respect to the transactions contemplated by this Quotation shall be governed in all respects by the laws of the State of California. The parties hereto irrevocably agree that the exclusive venue for any litigation arising in connection with the transactions specified in this Quotation shall be in the courts located in the County of Los Angeles, California.

18. Attorneys’ Fees and Costs.

In the event of any legal action, controversy, claim, or dispute between the parties involving the transactions contemplated by this Quotation, the prevailing party shall be entitled to recover from the other party reasonable expenses, attorneys’ fees, and costs.

19. Additional Conditions.

Buyer shall furnish to Seller, at no cost, suitable working space, storage space, adequate heat, telephone, light, ventilation, regulated electric power and outlets for testing purposes (if applicable). The facilities shall be within a reasonable distance from where any applicable services are to be provided. Seller and its representatives shall have full and free access to the equipment in order to provide any applicable services. Buyer shall provide the means to shut-off and secure electric power to the equipment and provide safe working conditions. Buyer shall not require Seller or its employees, as a condition to site access or otherwise, to further agree or enter into any agreement, which waives, releases, indemnifies or otherwise limits or expands any rights or obligation whatsoever. Any such agreements shall be null and void. Seller is under no obligation to remove or dispose of parts or equipment unless specifically agreed upon in Seller’s scope of work. Seller-removed parts become the property of Seller. Seller must not perform any electrical power switching unless specifically requested by Buyer, under the supervision of Buyer, and subject to procedures jointly agreed to in advance. Notwithstanding Buyer’s request, Seller may refuse to perform power switching, if in the opinion of Seller, such action would be unsafe. IN THE EVENT THAT SELLER PERFORMS POWER SWITCHING, TO THE FULLEST EXTENT PERMITTED BY LAW, BUYER SHALL INDEMNIFY, DEFEND, AND HOLD SELLER HARMLESS FROM ANY AND ALL LIABILITY, ACTIONS, SUITS, CLAIMS, DEMANDS, DAMAGES, COSTS, AND EXPENSES (“LOSSES”) ARISING OUT OF OR IN ANY WAY CONNECTED WITH OR RESULTING FROM SELLER’S PERFORMANCE OF POWER SWITCHING, REGARDLESS OF WHETHER THE LOSSES RESULT FROM SELLER’S NEGLIGENCE (WHETHER ACTION OR PASSIVE, AND WHETHER SOLE, JOINT, OR CONCURRENT), AND EVEN THOUGH CAUSED IN WHOLE OR IN PART BY A PRE-EXISTING DEFECT, STRICT LIABILITY, OR OTHER LEGAL FAULT OF SELLER. THIS INDEMNITY SHALL APPLY TO ANY ACTS OR OMISSIONS OR NEGLIGENT CONDUCT, WHETHER ACTIVE OR PASSIVE, ON THE PART OF EITHER SELLER OR BUYER. If OSHA or any other federal, state or local government, trade association, or contractual regulations or standards require a “safety person” to be on site during the performance of services, or in the event of a trade union jurisdictional dispute where trade union represented personnel are required to assist or stand by during the performance of services by Seller, Buyer shall be responsible for providing for and paying for any charge or wages for such person(s), as applicable. Buyer shall immediately inform Seller, in writing, at the time of order placement and thereafter, of any unsafe or hazardous substance or condition at the site, including, but not limited to, the presence of asbestos or asbestos-containing materials, and shall provide Seller with any applicable Material Data Safety Sheets regarding the same. Any losses, costs, damages, claims and expenses incurred by Seller as a result of Buyer’s failure to advise Seller shall be borne by Buyer. Seller, in its sole discretion and without cost or penalty, reserves the right to cancel its performance under this Agreement or any order immediately upon written notice to Buyer following Seller's discovery of unsafe or hazardous site substance or condition or any other circumstance altering Seller performance of Services. Buyer shall appoint a representative familiar with the site and the nature of the Services to be performed by Seller to be accessible at all times that Seller personnel are at the site. Seller shall not be liable for any expenses incurred by Buyer in removing, replacing or refurbishing any Buyer equipment or any part of Buyer’s building structure that restricts Seller's access. Buyer's personnel shall cooperate with and provide all necessary assistance to Seller. Seller shall not be liable or responsible for any work performed by Buyer.

By: ________________________________
Company: __________________________
Date: ____________________
P.O. #: ____________________________
SUBMITTED BY:

By: Art Jimenez
Quinn Power Systems
Phone: 951-250-5104

17) Agreement with Pye-Barker for the Design and Installation of the Fire Alarm System in the City Hall Building Project (CIP Project No. Z20006) Approve and authorize the City Manager to execute a Public Works Construction Agreement with Pye-Barker in an amount not to exceed $156,379.20 for the Design and Installation of the Fire Alarm System in the City Hall Building Project (CIP Project No.

Z20006) in such final form as approved by the City Attorney and authorize the City Manager to execute change orders not to exceed a 10% contingency amount of $15,637.00 for construction uncertainties and adjustments.

Page 1 of 2 ends

REPORT TO CITY COUNCIL
To: Honorable Mayor and Members of the City Council
From: Jason Simpson, City Manager
Prepared by: Shannon Buckley, Assistant City Manager
Date: June 24, 2025
Subject: Agreement with Pye-Barker for the Design and Installation of the Fire Alarm System in the City Hall Building Project (CIP Project No. Z20006) Recommendation
Approve and authorize the City Manager to execute a Public Works Construction Agreement with Pye-Barker in an amount not to exceed $156,379.20 for the Design and Installation of the Fire Alarm System in the City Hall Building Project (CIP Project No. Z20006) in such final form as approved by the City Attorney and authorize the City Manager to execute change orders not to exceed a 10% contingency amount of $15,637.00 for construction uncertainties and adjustments.

Background
The staff report seeks approval for the design and installation of a fire alarm system in the new City Hall building. The system will be installed and wired in compliance with project plans and applicable codes, ensuring both safety and regulatory adherence to the facility. This initiative is part of the City Hall Project and aims to provide a modern and fully functional fire safety solution for the building. This fire alarm system includes critical components specified by the building and fire code.

Discussion
Staff sought highly specialized contractors capable of both designing and installing the City Hall building's fire alarm system. The building site was made available for a walk-through by two contractors who met the City’s needs. Also, the contractors met with the City’s fire marshal inspector to discuss and address specific requirements in each contractor’s plan. Following those discussions regarding the City’s requirements, the contractors provided proposals for their designed fire alarm system. The table below lists the two contractors and their proposed bid amounts:

New City Hall Fire Alarm System

Page 2 of 2 ends

Pye Barker provided the lowest bid and is well qualified. The fire alarm system will be installed per detailed construction plans and manufacturer specifications. The smoke detection system will automatically shut off the building's HVAC (Heating, Ventilation, and Air Conditioning) system in the event of fire or smoke detection. Pye Barker will coordinate with the HVAC contractor to provide the necessary relay or alternative mechanism to facilitate the system shutdown triggered by the fire alarm relay.

The major system elements of the fire alarm system will consist of the following components:
• Notification devices
• Pull stations
• LED strobes
• Smoke detectors
• Heat detectors
• Fire Alarm Control Panel (FACP)
• All additional required parts for full system functionality Following the approval of this agenda item, work and execution of the attached agreement services will be immediately provided to the City, Staff has reviewed and verified the contractor has a valid license and a review of the contractor’s references and General and Auto Liability Insurances and Workers’ Compensation Insurance are in place naming the City as additional insured.

Fiscal Impact
The cost of the fire alarm system and its installation will be funded through the approved Capital Improvement budget for Fiscal Year 2024/25 – 2028/2029.

Attachments
Attachment 1 – Agreement
Exhibit A – Proposal
City Manager's Office
1 Agreement No. __________

AGREEMENT FOR PUBLIC WORKS CONSTRUCTION
Pye Barker
For the
City Hall Fire Alarm
System
CIP PROJECT NO. Z20006
This Agreement for Public Works Construction (“Agreement”) is made and entered into as of June 24, 2025 by and between the City of Lake Elsinore, a municipal corporation (“City”) and Pye Barker (“Contractor”).

The City and Contractor, in consideration of the mutual promises and covenants set forth herein, agree as follows:

1. The Project and Project Documents. Contractor agrees to construct the following public improvements (“work”) identified as:

City Hall Install Fire Alarm System(the “Project”)
The City-approved plans for the construction of the Project, which are incorporated herein by reference and prepared by the staff, are identified as:

The Project Documents include this Agreement and all of the following: (1) the Notice Inviting Bids, Instructions to Bidders, Bid Documents including Bidder’s Proposal as submitted by the Contractor, Contract Documents, General Specifications, Special Provisions, and all attachments and appendices; (2) everything referenced in such documents, such as specifications, details, standard plans or drawings and appendices, including all applicable State and Federal requirements; (3) all required bonds, insurance certificates, permits, notices, and affidavits; and (4) any and all addenda or supplemental agreements clarifying, amending or extending the work contemplated as may be required to insure completion in an acceptable manner. All of the provisions of the above-listed documents are made a part of this Agreement as though fully set forth herein.

2. Compensation.
a. For and in consideration of the payments and agreements to be made and performed by City, Contractor agrees to construct the Project, including furnishing all materials and performing all work required for the Project, and to fulfill all other obligations as set forth in the Bidder’s Proposal, such contract price being one hundred fifty six thousand three hundred seventy nine dollars and twenty cents ($156,379.20). 2 b. City hereby promises and agrees to employ, and does hereby employ, Contractor to provide the materials, do the work, and fulfill the obligations according to the terms and conditions herein contained and referred to, for the prices set forth, and hereby contracts to pay the same at the time, in the manner, and upon the conditions set forth in the Project Documents.
c. Contractor agrees to receive and accept the prices set forth in the Bidder’s Proposal as full compensation for furnishing all materials, performing all work, and fulfilling all obligations hereunder. Such compensation shall cover all expenses, losses, damages, and consequences arising out of the nature of work during its progress or prior to its acceptance including those for well and faithfully completing the work and the whole thereof in the manner and time specified in the Project Documents; and also including those arising from actions of the elements, unforeseen difficulties or obstructions encountered in the prosecution of the work, suspension or discontinuance of the work, and all other unknowns or risks of any description connected with the work.

3. Completion of Work.
a. Contractor shall perform and complete all work within 45 working days from the date of commencement specified in the Notice to Proceed, and shall provide, furnish and pay for all the labor, materials, necessary tools, expendable equipment, and all taxes, utility and transportation services required for construction of the Project. b. All work shall be performed and completed in a good workmanlike manner in strict accordance with the drawings, specifications and all provisions of this Agreement as hereinabove defined and in accordance with applicable laws, codes, regulations, ordinances and any other legal requirements governing the Project.
c. Contractor shall not be excused with respect to the failure to so comply by any act or omission of the City, the City Engineer, a City inspector, or a representative of any of them, unless such act or omission actually prevents the Contractor from fully complying with the requirements of the Project Documents, and unless the Contractor protests at the time of such alleged prevention that the act or omission is preventing the Contractor from fully complying with the Project Documents. Such protest shall not be effective unless reduced to writing and filed with the City within three (3) working days of the date of occurrence of the act or omission preventing the Contractor from fully complying with the Project Documents. d. City and Contractor recognize that time is of the essence in the performance of this Agreement and further agree that if the work called for under the Agreement is not completed within the time hereinabove specified, damages will be sustained by the City and that, it is and will be impracticable or extremely difficult to ascertain and determine the actual amount of damages the City will sustain in the event of, and by reason of, such delay. It is, therefore, agreed that such damages shall be presumed to be in the amount of $500 per calendar day, and that the Contractor will pay to the City, or City may retain from amounts otherwise payable to Contractor, such amount for each calendar day by which the Contractor fails to complete the work, including corrective items of work, under this Agreement within the time hereinabove specified and as adjusted by any changes to the work. 3 4. Changes to Work. City and Contractor agree that the City may make changes to the work, or suspend the work, and no matter how many changes, such changes or suspensions are within the contemplation of the Contractor and City and will not be a basis for a compensable delay claim against the City nor be the basis for a liquidated damage claim against the Contractor.

8. Indemnity. Contractor shall indemnify, defend, and hold harmless the City and its officials, officers, employees, agents, the County and Board Supervisors, and volunteers from and against any and all losses, liability, claims, suits, actions, damages, and causes of action arising out of any personal injury, bodily injury, loss of life, or damage to property, or any violation of any federal, state, or municipal law or ordinance, to the extent caused, in whole or in part, by the willful misconduct or negligent acts or omissions of Contractor or its employees, subcontractors, or agents, by acts for which they could be held strictly liable, or by the quality or character of their work. The foregoing obligation of Contractor shall not apply when (1) the injury, loss of life, damage to property, or violation of law arises from the sole negligence or willful misconduct of the City or its officers, employees, agents, or volunteers and (2) the actions of Contractor or its employees, subcontractor, or agents have contributed in no part to the injury, loss of life, damage to
4 property, or violation of law. It is understood that the duty of Contractor to indemnify and hold harmless includes the duty to defend as set forth in Section 2778 of the California Civil Code.

Acceptance by City of insurance certificates and endorsements required under this Agreement does not relieve Contractor from liability under this indemnification and hold harmless clause.

If to City: City of Lake Elsinore
Attn: City Manager
130 South Main Street
Lake Elsinore, CA 92530
With a copy to: City of Lake Elsinore
Attn: City Clerk
130 South Main Street
Lake Elsinore, CA 92530
If to Contractor: Pye Barker
Attn: Paul Talley
75130 St. Charles Place
Palm Desert, CA 92211

12. Amendments. This Agreement may be modified or amended only by a written document executed by both Contractor and City and approved as to form by the City Attorney.

14. Waiver. Waiver of a breach or default under this Agreement shall not constitute a continuing waiver of a subsequent breach of the same or any other provision under this Agreement.

23. Execution. This Agreement may be executed in several counterparts, each of which shall constitute one and the same instrument and shall become binding upon the parties when at least one copy hereof shall have been signed by both parties hereto. In approving this Agreement, it shall not be necessary to produce or account for more than one such counterpart. [Signatures on next page]
9 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the date first written above.
“CITY”
CITY OF LAKE ELSINORE, a municipal
corporation
“CONTRACTOR”
Pye Barker
City Manager
ATTEST:

By: Paul Talley
Its: General Manager
City Clerk
APPROVED AS TO FORM:

By: Click or tap here to enter text.

Its: Click or tap here to enter text.

City Attorney
Assistant City Manager

EXHIBIT A
CONTRACTOR’S PROPOSAL
[ATTACHED]

EXHIBIT B

LIST OF SUBCONTRACTORS
[ATTACHED]

PROPOSAL
Fire Alarm System
City of Lake Elsinore
100 South Main Street
Lake Elsinore, CA 92530
Presented By:

Fire Protection Service Corp. dba Pye Barker
Revision:
5/28/2025
0 http://www.pyebarkerfs.com/
75130 St. Charles Place
Palm Desert, CA 92211 United States
760-341-3593
http://www.pyebarkerfs.com/
Modified:

Duane Vasquez
Email Address: [email protected] Project Number: PBPD -0002561

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SCOPE OF WORK
Pye Barker will supply a set of engineered and stamped plans with the approval of this proposal.

The fire system will be wired and installed per plans.

The smoke detection system will be provided to shut off the HVAC system in case of fire or smoke in the building. The HVAC contractor or electrician will need to provide a relay or other means for the fire alarm relay to shut the system off.

The system will include notification devices, pull stations, LED strobes, smoke detectors, heat detectors, FACP and all required parts for the system to function as currently specified.

Any changes required by engineers or local fire marshals will be handled with a change order.

NOTES:
1) The proposal price encompasses all necessary project management, design/engineering, parts, and labor to successfully carry out the specified scope of work. Any alterations to the scope of work may result in additional charges for parts and labor. 2) We have made considerable efforts to provide an accurate proposal. However, unforeseen issues may arise that were not identified at the time of the proposal. Should this occur, we will promptly inform you of any necessary delays and/or change orders that may be required. 3) Any conduit work not specified in the scope of work is specifically excluded. Drilling through steel beams or steel door/window frames is specifically excluded. Any request or requirement for this work may result in a change order for additional parts and labor.

Tariff Notice:

This proposal does not account for any escalation or price protection associated with the proposed new tariffs that may impact both foreign and domestic products. Any changes to material costs resulting directly or indirectly from these tariffs will be communicated to the customer and may lead to additional charges, scope of work changes, and equipment changes.

Fire Protection Service Corp. dba Pye Barker

Page 2 of 9 ends

First Floor
Fire Alarm
Silent Knight SK-6808 $2,751.98
Silent Knight 6808 198-Point Single Loop Addressable Fire Alarm Control System 1 Silent Knight SK-5860R $1,233.98
Silent Knight 005860R Intelliknight Remote Annunciator
1 Silent Knight EVS-50W $2,326.92
50 watt amplifier, 4 spkr crcts use EVS-CE4 for addl circuits 1 Napco SLE-FNI-FIRE $491.60
Standard Dual Path Cellular/IP Communicator, FirstNet Ready® and available for use on FirstNet, ABS. Low current draw, panel-powered technology™ (powered by control panel)
1 System Sensor SPSCWLED $2,887.96
System Sensor SPSCWLED L-Series Indoor Speaker Ceiling-Mounted LED Strobe, "FIRE", White
17 System Sensor SCWLED $754.88
System Sensor SCWLED L Series Ceiling Mount Strobe with LED, FIRE Label, White 8 Silent Knight SK-PHOTOW $539.94
Silent Knight SK-PHOTO-W Series Addressable Photoelectric Smoke Detector 3 Silent Knight SK-HEAT-W $185.98
Silent Knight SK-HEAT-W Addressable 2-Wire Fixed Heat Detector, Includes Base, White
1 Silent Knight SK-MINIMON $323.96
Silent Knight SK-MINIMON Addressable Mini Monitor Module for FACPs 2 Silent Knight SK-MONITOR2 $2,015.88
Silent Knight SK-MONITOR-2 Addressable Dual Input Monitor Module 6 Silent Knight SK-RELAY $1,259.90
Silent Knight SK-RELAY Intelligent Relay Module
5 Space Age Electronics TC2 $280.80
TC2 TC-Series Terminal Cabinet, 14" x 14" x 1/4" D, Keyed Lock, Red 1 Space Age Electronics SSU00672 $140.00
Electronics FDB, fire alarm documents box
1 Rev. 0
Fire Alarm System
Project No : PBPD -0002561 5/28/2025
* Price Includes Accessories

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Genesis 45061004 $520.00
18 AWG 2 Solid Conductors, Plenum FPLP, Red, 1000 feet Reel 2000
Genesis 45131004 $2,160.00
14 AWG 2 Solid Conductors, Plenum FPLP, Red, 1000 feet Reel 4000
Genesis 46081004 $1,860.00
14 AWG 2 Solid Conductors, Shielded, Plenum FPLP, Red, 1000 feet Reel 3000
Fire-Lite Alarms B300-6-BP $382.26
Bulk pack of B300-6, package contains 10
2 AMS Misc. Parts and Supplies $804.64
Misc Parts and Supplies- Boxes, connectors, Conduit
1 Fire Alarm Total $20,920.68
First Floor Total $20,920.68
Rev. 0
Fire Alarm System
Project No : PBPD -0002561 5/28/2025
* Price Includes Accessories

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Second Floor
Fire Alarm
System Sensor SPSCWLED $4,416.88
System Sensor SPSCWLED L-Series Indoor Speaker Ceiling-Mounted LED Strobe, "FIRE", White
26 System Sensor SCWLED $660.52
System Sensor SCWLED L Series Ceiling Mount Strobe with LED, FIRE Label, White 7 Silent Knight SK-PHOTOW $179.98
Silent Knight SK-PHOTO-W Series Addressable Photoelectric Smoke Detector 1 Silent Knight SK-MONITOR2 $335.98
Silent Knight SK-MONITOR-2 Addressable Dual Input Monitor Module 1 Silent Knight SK-RELAY $251.98
Silent Knight SK-RELAY Intelligent Relay Module
1 Space Age Electronics TC2 $280.80
TC2 TC-Series Terminal Cabinet, 14" x 14" x 1/4" D, Keyed Lock, Red 1 Fire-Lite Alarms B300-6-BP $382.26
Bulk pack of B300-6, package contains 10
2 AMS Misc. Parts and Supplies $260.34
Misc Parts and Supplies- Boxes, connectors, Conduit
1 Fire Alarm Total $6,768.74
Second Floor Total $6,768.74
Rev. 0
Fire Alarm System
Project No : PBPD -0002561 5/28/2025
* Price Includes Accessories

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Third Floor
Fire Alarm
Silent Knight 5496 $1,172.88
Silent Knight 005496 Silent Knight 5496 6A Intelligent Remote Power Supply 1 System Sensor SPSCWLED $2,718.08
System Sensor SPSCWLED L-Series Indoor Speaker Ceiling-Mounted LED Strobe, "FIRE", White
16 System Sensor SCWLED $377.44
System Sensor SCWLED L Series Ceiling Mount Strobe with LED, FIRE Label, White 4 Silent Knight SK-PHOTOW $359.96
Silent Knight SK-PHOTO-W Series Addressable Photoelectric Smoke Detector 2 Silent Knight SK-CONTROL $189.32
System sensor adressable notification module
1 Silent Knight SK-MONITOR2 $335.98
Silent Knight SK-MONITOR-2 Addressable Dual Input Monitor Module 1 Silent Knight SK-RELAY $251.98
Silent Knight SK-RELAY Intelligent Relay Module
1 Space Age Electronics TC2 $280.80
TC2 TC-Series Terminal Cabinet, 14" x 14" x 1/4" D, Keyed Lock, Red 1 Fire-Lite Alarms B300-6-BP $382.26
Bulk pack of B300-6, package contains 10
2 AMS Misc. Parts and Supplies $242.75
Misc Parts and Supplies- Boxes, connectors, Conduit
1 Fire Alarm Total $6,311.45
Third Floor Total $6,311.45
Rev. 0
Fire Alarm System
Project No : PBPD -0002561 5/28/2025
* Price Includes Accessories

Page 6 of 9 ends

Roof Floor
Fire Alarm
System Sensor SPSCWLED $1,528.92
System Sensor SPSCWLED L-Series Indoor Speaker Ceiling-Mounted LED Strobe, "FIRE", White
9 Silent Knight SK-PHOTOW $359.96
Silent Knight SK-PHOTO-W Series Addressable Photoelectric Smoke Detector 2 Silent Knight SK-HEAT-W $185.98
Silent Knight SK-HEAT-W Addressable 2-Wire Fixed Heat Detector, Includes Base, White
1 Silent Knight SK-MINIMON $161.98
Silent Knight SK-MINIMON Addressable Mini Monitor Module for FACPs 1 Silent Knight SK-MONITOR2 $335.98
Silent Knight SK-MONITOR-2 Addressable Dual Input Monitor Module 1 Silent Knight SK-RELAY $251.98
Silent Knight SK-RELAY Intelligent Relay Module
1 Space Age Electronics TC2 $280.80
TC2 TC-Series Terminal Cabinet, 14" x 14" x 1/4" D, Keyed Lock, Red 1 Fire-Lite Alarms B300-6-BP $191.13
Bulk pack of B300-6, package contains 10
1 Fire Alarm Total $3,296.73
Roof Floor Total $3,296.73
Rev. 0
Fire Alarm System
Project No : PBPD -0002561 5/28/2025
* Price Includes Accessories

Page 7 of 9 ends

AC Shutoff
Fire Alarm
Silent Knight SK-PHOTOW $8,459.06
Silent Knight SK-PHOTO-W Series Addressable Photoelectric Smoke Detector 47 Silent Knight SK-RELAY $8,819.30
Silent Knight SK-RELAY Intelligent Relay Module
35 AMS Misc. Parts and Supplies $691.13
Misc Parts and Supplies- Boxes, connectors, Conduit
1 Fire Alarm Total $17,969.49
AC Shutoff Total $17,969.49
Miscellaneous Items:

Out of Area Expenses
1 Additional Costs $10,166.00 $10,166.00
1 Materials and Performance Bonds $5,250.00 $5,250.00
1 Engineering, Fees $3,700.00 $3,700.00
Miscellaneous Items Total: $19,116.00
Project Subtotal: $55,267.09
Rev. 0
Fire Alarm System
Project No : PBPD -0002561 5/28/2025
* Price Includes Accessories

Page 8 of 9 ends

Date
Gus Papagolos Date
Fire Protection Service Corp. dba Pye Barker
Client:

Contractor:

PROJECT SUMMARY
1084934
This proposal is subject to the Pye-Barker General Terms and Conditions located at https://pyebarkerfs.com/generalterms. By signing or receiving services under this proposal, you acknowledge that you have reviewed such terms and conditions and that they will be incorporated into the proposal by reference. This proposal, including the incorporated General Terms and Conditions, contains the complete and final agreement between the parties with respect to the subject matter hereof.

Equipment: $55,267.09
Misc. Parts Adjustment: $2,663.32
Labor: $74,263.88
Sales Tax: $5,068.91
Misc. Items: $19,116.00
Grand Total: $156,379.20
Payment Schedule Amount Due Date
Upon Acceptance $93,827.52
Upon Start $46,913.76
Upon Completion $15,637.92
Rev. 0
Fire Alarm System
Project No : PBPD -0002561 5/28/2025

Page 9 of 9 ends

18) Contractor Services Agreement with Azteca Cleaning Services, LLC for On-Call Cleaning Services
Approve and authorize the City Manager to execute a contract with Azteca Cleaning Services, LLC in an amount not to exceed $300,000 for on-call cleaning services in such final form as approved by the City Attorney and authorize the City Manager to execute change orders not exceeding a 10% contingency of $30,000 for uncertainties and adjustments.

Page 1 of 2 ends

REPORT TO CITY COUNCIL
To: Honorable Mayor and Members of the City Council
From: Jason Simpson, City Manager
Prepared by: Johnathan Oliver Skinner, Director of Community Services Date: June 24, 2025
Subject: Contractor Services Agreement with Azteca Cleaning Services, LLC for On-Call Cleaning Services
Recommendation
Approve and authorize the City Manager to execute a contract with Azteca Cleaning Services, LLC in an amount not to exceed $300,000 for on-call cleaning services in such final form as approved by the City Attorney and authorize the City Manager to execute change orders not exceeding a 10% contingency of $30,000 for uncertainties and adjustments.

Background
In July 2021, the City entered into an agreement for on-call cleaning services at the Anchor through Azteca. Azteca responded, providing the required information. The Azteca Cleaning Services proposal was fully vetted and negotiated to ensure fair and reasonable pricing. Because of the exceptional cleaning requirements and challenges, the proposal contains multiple levels of service. Since this agreement, Azteca has performed its Cleaning Services, and the City has been pleased with the performance.

The City has utilized Azteca cleaning services to satisfy exceptional disinfecting and sanitizing requirements at both the Anchor and Launch Pointe. Also, the City has experienced the work of Azteca Cleaning Services at several City construction projects and City facilities and has found the work of this company superior to other cleaning service companies. Azteca Cleaning Services LLC exceeds the normal cleaning service elements and includes disinfecting and sanitizing specialized cleaning, matching, and exceeding hospital and hotel standards. Of particular importance to the Anchor and Launch Pointe, housing facilities is the attention to detail and high level of cleaning service Azteca performs with total compliance with all disinfecting and sanitizing standards.

Azteca Cleaning Agreement

Page 2 of 2 ends

Discussion
Recently, multiple Azteca services have been utilized by the City at the Anchor, Launch Pointe, Diamond Stadium, and City Construction projects. Some of these services have been urgent requirements affecting facility operational efforts. Every assigned work effort has been proposed in writing, reviewed and negotiated by City Staff, and approved for execution. This work effort has included a wide range of City requirements, time-sensitive house cleaning at Launch Pointe, and urgent City operational demands representative of the work below:
• General Cleaning and Sanitizing
• Deep Cleaning Hospital grade sanitizers & disinfectants for bacteria • Hot or Cold Extract Service Window Cleaning
• Pet odor elimination and Grout Cleaning
• Strip and Wax Floors and Furniture cleaning
• Floor Scrubs Appliance surface reconditioning
• Carpet Cleaning Stadium seating & field padding reconditioning This agreement is needed to ensure that continued contractor support is in place for scheduled operational demands as well as on-call services for non-routine immediate needs. At Launch Point, the demand for rapid trailer and yurt cleaning is essential to optimize the rental availability of these revenue-generating rental units. It is important to know that within this agreement, the on-call cleaning services will provide a day-to-day quick turnaround service for Launch Point trailers and yurts, like a hotel room service. This will provide increased rental opportunities and revenues at net profit levels. In short, this is a very cost-effective agreement. Sustainment of these essential and general requirements provides the City with immediate resources. An additional benefit to this service agreement is the ability to utilize Azteca Cleaning Services during very high operational periods surrounding holidays and weekends. It is at these times when Launch Point services are most compromised by exceptionally high demand, specifically, all 15 Resort restrooms and nine showers, which require cleaning 3 to 5 times daily.

Following the approval of this agenda item, the work and execution of the attached agreement will make services immediately available to the City. Staff has reviewed and verified that the contractor has a valid license, and a review of the contractor’s references and general and auto liability insurance and workers’ compensation insurance is in place, naming the city as additional insured. Approximately $40,000 of the total $300,000 will be allocated to cleaning services at the Anchor, with the remainder dedicated to Launch Pointe and on-call services.

Fiscal Impact
Funds are budgeted in the Fiscal Year 2025-26 budget.

Attachments
Attachment 1 - Agreement
Exhibit A - Proposal
Community Services

Page 1 ends

AGREEMENT FOR CONTRACTOR SERVICES
Azteca Cleaning Services, LLC

ON-CALL SERVICES
This Agreement for Contractor Services (On-Call) (the “Agreement”) is made and entered into as of June 24, 2025 by and between the City of Lake Elsinore, a municipal corporation (the “City”) and Azteca Cleanign Services, LLC, a Limited Liability Corporation (the “Contractor”).

RECITALS
A. The City has determined that it requires the following services:

Construction, commercial, and household cleaning services.

B. The City has prepared a request for a proposals and Contractor has submitted to City a proposal, dated June 14, 2025, both of which are attached hereto as Exhibit A (collectively, the "Contractor's Proposal") and incorporated herein, to provide services and related work to the City pursuant to the terms of this Agreement.

C. Contractor possesses the skill, experience, ability, background, certification and knowledge to perform the services and related work described in this Agreement on the terms and conditions Agreement.

AGREEMENT

1. Scope of Services. Contractor shall perform the services and related work described in Contractor's Proposal (Exhibit A). Contractor shall provide such services and related work at the time, place, and in the manner specified in Contractor's Proposal (Exhibit A), subject to the direction of the City through its staff that it may provide from time to time. Contractor acknowledges that the Scope of Services provides for 24 hour-a-day, 7 day-a-week, on-call and minor construction support on an as needed basis.

2. Time of Performance.
a. Time of Essence. Time is of the essence in the performance of this Agreement. The time for completion of the services and related work to be performed by Contractor is an essential condition of this Agreement. Contractor shall prosecute regularly and diligently the services and related work contemplated pursuant to this Agreement consistent with Contractor's Proposal (Exhibit A) and shall provide, furnish and pay all labor, materials, necessary tools, expendable equipment, and all taxes, utility and transportation services required to perform such the services and related work.
b. Performance Schedule. Contractor shall commence the services and related work pursuant to this Agreement upon receipt of a written notice to proceed and shall perform all services and related work within the time period(s) established in the Contractor's Proposal (Exhibit A). When requested by Contractor, extensions to the time period(s) specified may be approved in writing by the City Manager.

Page 2 ends

c. Term and Compliance with Task/Work Order System. Unless earlier terminated as provided elsewhere in this Agreement, this Agreement shall continue in full force and effect for a period commencing on July 1, 2025 and ending June 30, 2028. The City may, at its sole discretion, extend the term of this Agreement on a 12-month basis not to exceed 2 additional twelve (12) month renewal terms by giving written notice thereof to Contractor not less than thirty (30) days before the end of the contract term, such notice to be exercised by the City Manager.

Contractor hereby agrees and acknowledges that any and all work or services performed pursuant to this Agreement shall be based upon the issuance of a Task/Work Order by the City. Contractor acknowledges that it is not guaranteed any minimum or specific amount of work or services as all work or services shall be authorized through a Task/Work Order issued by the City.

3. Compensation. Compensation to be paid to Contractor shall be in accordance with the fees set forth in Contractor's Proposal (Exhibit A), which is attached hereto and incorporated herein by reference. In no event shall Contractor's annual compensation exceed Three Hundred Thousand Dollars and no Cents ($300,000.00) without additional written authorization from the City.

Notwithstanding any provision of Contractor's Proposal to the contrary, out of pocket expenses set forth in Exhibit A shall be reimbursed at cost without an inflator or administrative charge. Payment by City under this Agreement shall not be deemed a waiver of defects, even if such defects were known to the City at the time of payment.

4. Method of Payment. Contractor shall promptly submit billings to the City describing the services and related work performed during the preceding month to the extent that such services and related work were performed. Contractor's bills shall be segregated by project task, if applicable, such that the City receives a separate accounting for work done on each individual task for which Contractor provides services. Contractor's bills shall include a brief description of the services performed, the date the services were performed, the number of hours spent and by whom, and a description of any reimbursable expenditures. City shall pay Contractor no later than forty-five (45) days after receipt of the monthly invoice by City staff.

5. Background Checks. At any time during the term of this Agreement, the City reserves the right to make an independent investigation into the background of Contractor’s personnel who perform work required by this Agreement, including but not limited to their references, character, address history, past employment, education, social security number validation, and criminal or police records, for the purpose of confirming that such personnel are lawfully employed, qualified to provide the subject service or pose a risk to the safety of persons or property in and around the vicinity of where the services will be rendered or City Hall. If the City makes a reasonable determination that any of Contractor’s prospective or then current personnel is deemed objectionable, then the City may notify Contractor of the same.

Contractor shall not use that personnel to perform work required by this Agreement, and if necessary, shall replace him or her with a suitable worker.

6. Suspension or Termination.
a. The City may at any time, for any reason, with or without cause, suspend or terminate this Agreement, or any portion hereof, by serving upon the Contractor at least ten (10) days prior written notice. Upon receipt of such notice, the Contractor shall immediately cease all work under this Agreement, unless the notice provides otherwise. If the City suspends or terminates a portion of this Agreement, such suspension or termination shall not make void or invalidate the remainder of this Agreement.
b. In the event this Agreement is terminated pursuant to this Section, the City shall pay to Contractor the actual value of the work performed up to the time of termination, provided that the work performed is of value to the City. Upon termination of the Agreement pursuant to this

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Lake Elsinore City CouncilJune 24, 2025

Lake Elsinore City Council
June 24, 2025