Los Gatos City Council
April 21, 2026

IMPORTANT NOTICE
This is a hybrid meeting and will be held in-person at the Town Council Chambers at 110 E. Main Street and virtually through Zoom Webinar (log-in information provided below). You may watch the Council meeting without providing public comment on Comcast cable channel 15 or at www.LosGatosCA.gov/TownYouTube. Members of the public may provide public comments for agenda items in-person or virtually by following the instructions listed at the end of the agenda.

Council Member Rob Rennie will be participating via teleconference pursuant to Government Code Section 54953(b)(3) from a location at Via di Gracciano nel Corso, 82, 53045 Montepulciano, Italy. The teleconference location shall be accessible to the public and the agenda will be posted at the teleconference location 72 hours before the meeting.

To watch and participate via Zoom, please go to:
https://losgatosca-gov.zoom.us/j/86730363468?pwd=pfKQoh92JnbwOYwFvZqIdSSWpjxYoK.1 Enter Passcode: 577971

CALL MEETING TO ORDER

ROLL CALL

PLEDGE OF ALLEGIANCE

PRESENTATIONS
i. Small Business Recognition
ii. National Poetry Month Proclamation
iii. Teen Center Presentation by Los Gatos Thrives
CONSENT ITEMS (Consent Items are considered routine Town business and may be approved by one motion. Any member of the Council may remove an item from the Consent Items for comment and action. Members of the public may provide input on any or multiple Consent Item(s) when the

TOWN OF LOS GATOS

COUNCIL MEETING AGENDA
APRIL 21, 2026
110 EAST MAIN STREET AND TELECONFERENCE

TOWN COUNCIL CHAMBERS
7:00 PM
Rob Moore, Mayor
Maria Ristow, Vice Mayor
Mary Badame, Council Member
Matthew Hudes, Council Member
Rob Rennie, Council Member

Mayor asks for public comments on the Consent Items. If you wish to comment, please follow the Participation Instructions located at the end of this agenda. If an item is removed, the Mayor has the sole discretion to determine when the item will be heard. Each speaker is limited to no more than three (3) minutes or such time as authorized by the Mayor.)

1. Approve the Minutes of the April 7, 2026, Closed Session Town Council Meeting.

RECOMMENDATION: Approve the Minutes of the April 7, 2026, Closed Session Town Council Meeting.

2. Approve the Minutes of the April 7, 2026, Town Council Meeting.

RECOMMENDATION: Approve the Minutes of the April 7, 2026, Town Council Meeting.

3. Receive the Monthly Financial and Investment Report for February 2026.

RECOMMENDATION: Receive the Monthly Financial and Investment Reports for February 2026.

4. Authorize the Town Manager to Execute an Agreement for Construction Services with Saviano, Co., Inc., and Authorize a 10% Construction Contingency for a Total Project Authorization Amount of $107,801.38 (La Rinconada Sports Court Resurfacing Project).

RECOMMENDATION: Authorize the Town Manager to execute a construction agreement with Saviano, Co., Inc. in an amount of $98,001.25, to complete the La Rinconada Sports Court Resurfacing Project and authorize a 10% construction contingency of $9,800.13 for a total project authorization amount not to exceed $107,801.38.

5. Authorize the Town Manager to Execute a Construction Contract with QLM, Inc. in the Amount of $646,336 with Change Order Authority Not to Exceed $64,634 (10% Contingency); Authorize the Town Manager to Execute a Agreement for Professional Services with Ninyo & Moore in the Amount of $18,390; Authorize the Town Manager to Execute a Agreement for Professional Services with Precision Works LLC DBA Precision Concrete Cutting in the Amount of $90,000; Approve the Plans and Specifications (Design Immunity); and Authorize Associated Budget Adjustments.

RECOMMENDATION: Staff recommends that the Town Council take the following actions in regard to the 2026 Curb, Gutter, and Sidewalk Maintenance Project (4118120; CIP No. 813- 9921):
a. Authorize the Town Manager to execute a public works contract with QLM, Inc. in the amount of $646,336, with authority to approve construction change orders in an amount not to exceed $64,634 (10% contingency);
b. Authorize the Town Manager to execute an Agreement for Professional Services with Ninyo & Moore for Materials Testing Services for a total agreement in an amount not to exceed $18,390;
c. Authorize the Town Manager to execute an Agreement for Services with Precision Works LLC DBA Precision Concrete Cutting for Sidewalk Cutting Services for a total agreement in an amount not to exceed $90,000;
d. Approve the project construction plans and specifications per Government Code 830.6 (Design Immunity);
e. Find the project Categorically Exempt under Section 15301(c) of the California Environmental Quality Act; and

f. Authorize An Expenditure Budget Transfer in the Amount of $439,706 from the Annual Street Repair and Resurfacing Project (4118155, CIP No. 811-9901) to the Annual Curb, Gutter and Sidewalk Maintenance Project (4118120, CIP No. 813-9921).

6. Adopt a Resolution Describing Improvements and Directing the Preparation of the Town Engineer’s Report for Fiscal Year 2026-27 for Landscape and Lighting Assessment Districts No. 1 and 2.

RECOMMENDATION: Adopt a Resolution describing improvements and directing the preparation of the Town Engineer’s Report for Fiscal Year 2026-27 for Landscape and Lighting Assessment Districts No. 1 and 2.

7. Authorize the Town Manager to Execute a Three-Year Agreement for Professional Services with Disability Access Consultants, LLC, in an Amount Not to Exceed $50,000 Annually and $150,000 Total.

RECOMMENDATION: Authorize the Town Manager to execute a three-year agreement for Professional Services with Disability Access Consultants, LLC, for ADA Transition Plan implementation and support services in an amount not to exceed $50,000 annually and $150,000 total.

8. Authorize the Town Manager or Designee to Enter into a Second Amendment to the Contract for Litigation Legal Services for FY 2025-26 with Goldfarb and Lipman to Increase the Contract Amount by $100,000, for a Total Contract Amount Not to Exceed $450,000.

RECOMMENDATION: Authorize the Town Manager or designee to enter into a Second Amendment to the Contract for Litigation Legal Services for FY 2025-26 with Goldfarb and Lipman in an amount not to exceed $450,000.

VERBAL COMMUNICATIONS (Members of the public are welcome to address the Town Council on any matter that is not listed on the agenda and is within the subject matter jurisdiction of the Town Council. The law generally prohibits the Town Council from discussing or taking action on such items. However, the Council may instruct staff accordingly. Town resources may not be used to facilitate audio or visual presentations. To ensure all agenda items are heard, this portion of the agenda is limited to 30 minutes. In the event additional speakers were not heard during the initial Verbal Communications portion of the agenda, an additional Verbal Communications will be opened prior to adjournment. Each speaker is limited to no more than three (3) minutes or such time as authorized by the Mayor.)
PUBLIC HEARINGS (Presentations during the Public Hearings portion of the agenda by appellants and applicants, including any expert or consultant assisting with the presentation, shall be limited to a total of no more than five (5) minutes for all speakers. Appellants and applicants shall be provided no more than three (3) minutes to rebut at the end of the public hearing. Visual presentations that require the use of staff resources shall be limited to appellants and applicants.

Members of the public testifying at public hearings shall be limited to no more than three (3) minutes, or such time as authorized by the Mayor.)

9. Following a Court Order, Hear the Appeals Submitted by Applicants for (1) Luxe and (2) Arya Projects Regarding Government Code Section 65941.1’s Deadline for Submittal of Complete Planning Applications for Proposed Projects at (1) 14849 Los Gatos Boulevard, and (2) 15300 and 15330 Los Gatos Boulevard.

RECOMMENDATION: Following a court order, hear the appeals regarding Government Code Section 65941.1’s deadline for submittal of complete Planning Applications for proposed projects at (1) 14849 Los Gatos Boulevard (Architecture and Site Application S24-008 and Subdivision Application M-24-005) and (2) 15300 and 15330 Los Gatos Boulevard (Architecture and Site Application S-24-018, Conditional Use Permit Application U-24-007, and Subdivision Application M-24-009) and adopt Resolutions applying the Superior Court determination that multiple 90-Day resubmission periods to respond to successive incompleteness determinations are allowed.

OTHER BUSINESS (Each speaker is limited to no more than three (3) minutes or such time as authorized by the Mayor.)

10. Receive the Fiscal Condition Assessment and Fiscal Impact Analysis for Proposed and Planned Growth Memorandums and Provide Feedback.

RECOMMENDATION: Receive the Fiscal Condition Assessment with Five-Year and LongTerm Financial Projections and Fiscal Impact Analysis for Proposed and Planned Growth Memorandums and provide feedback for the Town Council.

COUNCIL MATTERS (Members of the public who wish to speak on matters listed under Council Matters may do so under Verbal Communications.)

MANAGER MATTERS

ATTORNEY MATTERS AND CLOSED SESSION REPORT
ADJOURNMENT (Council policy is to adjourn no later than midnight unless a majority of Council votes for an extension of time.)
ADA NOTICE - In compliance with the Americans with Disabilities Act, if you require special assistance to participate in this meeting, please contact the Clerk’s Office at (408) 354-6834.

Please notify the Clerk’s Office at least two (2) business days prior to the meeting so that reasonable arrangements can be made to ensure accessibility in compliance with 28 CFR §35.102-

35.104 and related provisions.

NOTICE REGARDING SUPPLEMENTAL MATERIALS - Materials related to an item on this agenda submitted to the Town Council after initial distribution of the agenda packets are available for public inspection in the Clerk’s Office at Town Hall, 110 E. Main Street, Los Gatos and on the Town’s website at www.losgatosca.gov. Town Council agendas and related materials can be viewed online at https://losgatos-ca.municodemeetings.com/.

HOW TO PARTICIPATE
Members of the public may provide public comments for agenda items in-person or virtually through the Zoom Webinar by following the instructions listed below.

The public is welcome to provide oral comments in real-time during the meeting in three ways:
 Zoom Webinar (Online): To participate from a PC, Mac, iPad, iPhone or Android device.

Please use this URL to join: https://losgatoscagov.zoom.us/j/86730363468?pwd=pfKQoh92JnbwOYwFvZqIdSSWpjxYoK.1 Passcode: 577971. You can also type in 867 3036 3468 in the “Join a Meeting” page on the Zoom website at www.zoom.us and use passcode 577971. When the Mayor announces the item for which you wish to speak, click the “raise hand” feature in Zoom.  Telephone: To participate by phone please dial 1 (408) 961-3927 or 1 (855) 758-1310 for US Toll-free and use Meeting ID: 867 3036 3468. When the Mayor announces the item for which you wish to speak, press *9 on your telephone keypad to raise your hand.  In-Person: Please complete a “speaker’s card” located on the back of the chamber benches and submit it to the Town Clerk before the meeting or when the Mayor announces the item for which you wish to speak.

NOTES: Comments will be limited to three (3) minutes or less at the Mayor’s discretion. If you are unable to participate in real-time, you may email to [email protected] the subject line “Public Comment Item #__ ” (insert the item number relevant to your comment).

Deadlines to submit written comments are:
-3:00 p.m. the Thursday before the Council meeting for inclusion in the agenda packet. -3:00 p.m. the Friday and Monday before the Council meeting for inclusion in an addendum. -11:00 a.m. the day of the Council meeting for inclusion in a desk item.

110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832
www.losgatosca.gov

TOWN OF LOS GATOS

COUNCIL CLOSED SESSION MINUTES
MEETING DATE: 04/21/2026
ITEM NO: 1
DRAFT
Minutes of the Town Council Special Meeting Closed Session Tuesday, April 7, 2026
The Town Council of the Town of Los Gatos conducted a special meeting in person to hold a Closed Session.

MEETING CALLED TO ORDER AT APPROXIMATELY 5:45 P.M.

ROLL CALL

Present: Mayor Rob Moore, Vice Mayor Maria Ristow, Council Member Mary Badame, Council Member Matthew Hudes, and Council Member Rob Rennie.

Absent: None

VERBAL COMMUNICATIONS (ONLY ON ITEMS ON THE AGENDA)
The following individuals spoke on the item:

1. Member of the Public
Mayor Moore announced the closed session title as listed on the agenda.

THE TOWN COUNCIL MOVED TO CLOSED SESSION ON THE FOLLOWING ITEMS:

1. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Significant exposure to litigation pursuant to subdivision (d)(2) of Government Code Section 54956.9: 2 cases.

There was no reportable action.

ADJOURNMENT
The meeting adjourned at approximately 6:50 p.m.

Attest: Submitted by:
___________________________ __________________________
Jenna De Long, Deputy Town Clerk Chris Constantin, Town Manager

ITEM NO. 1.
110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832
www.losgatosca.gov

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
MEETING DATE: 04/21/2026
ITEM NO: 2
DRAFT
Minutes of the Town Council Meeting
Tuesday, April 7, 2026
The Town Council of the Town of Los Gatos conducted a regular meeting in person and via teleconference.

MEETING CALLED TO ORDER AT 7:02 P.M.

ROLL CALL

Present: Mayor Rob Moore, Vice Mayor Maria Ristow, Council Member Mary Badame, Council Member Rob Rennie, Council Member Matthew Hudes.

Absent: None.

PLEDGE OF ALLEGIANCE
Lucas LeJanairo led the Pledge of Allegiance. The audience was invited to participate.

PRESENTATIONS
Mayor Moore presented an Arbor Day proclamation.

Valley Transportation Authority (VTA) gave a presentation on VTA’s draft local investment plan.

CONSENT ITEMS (TO BE ACTED UPON BY A SINGLE MOTION)

1. Approve the Minutes of the March 16, 2026, Special Joint Study Session Meeting of the Town Council and Finance Commission.

2. Approve the Minutes of the March 16, 2026, Town Council Special Meeting.

3. Approve the Minutes of the March 17, 2026, Closed Session Town Council Meeting.

4. Approve the Minutes of the March 17, 2026, Special Joint Study Session Meeting of the Town Council and Planning Commission.

5. Approve the Minutes of the March 17, 2026, Town Council Meeting.

6. Approve the Minutes of the March 30, 2026, Closed Session Town Council Meeting.

7. Authorize the Town Manager to Execute a Construction Contract with QLM, Inc. in the Amount of $163,538 with Change Order Authority Not to Exceed $16,354; Approve the Plans and Specifications (Design Immunity), and Authorize the Town Manager to Execute a Professional Services with Ninyo & Moore for an Amount Not to Exceed $9,880 (Oak Meadow Bandstand Area Improvements Project).

8. Authorize the Town Manager to Execute a First Amendment to the Agreement for Consultant Services with CSG Consultants, Inc., to Extend the Term of the Agreement.

9. Authorize the Town Manager to Execute a First Amendment to the Agreement for Services with Bear Electrical Solutions LLC to Increase the Scope of Work and Compensation for

ITEM NO. 2.

PAGE 2 OF 5
SUBJECT: Draft Minutes of the Town Council Meeting of April 7, 2026 DATE: April 21, 2026
Fiscal Year 2025-26 and Fiscal Year 2026-27 for a Total Agreement Amount Not to Exceed $982,907.

10. Authorize the Town Manager to Execute a Professional Services Agreement with Dudek for the Town-Wide Evacuation Plan, in an Amount Not to Exceed $346,930.00; Execute a Cost Sharing Agreement with Monte Sereno, totaling $56,039.50; and Approve the Associated Revenue Budget Adjustment.

11. Authorize the Town Manager to Execute a First Amendment to an Agreement with NHA Advisors, LLC for Fiscal Condition Analysis, Fiscal Impact Analysis, and Asset Liability Management Studies to Extend the Contract to June 30, 2026.

12. Adopt Resolutions to Join the California Joint Powers Insurance Authority (CJPIA), Participate in Its Liability Protection Program, Delegate Claims Handling Authority, Authorize Administrative Implementation, and Appoint the Mayor as Voting Delegate and the Town Manager and Town Attorney as Alternates. RESOLUTIONS 2026-012, 2026-013, 2026-014, and 2026-015

13. Authorize the Town Manager to Negotiate and Execute an Art Transfer Agreement with the Los Gatos Museum Association (NUMU) to Transfer a Sculpture and Plaque.

Mayor Moore opened public comment.

The following individuals spoke on the consent items:

1. Carin Yamamoto (Items 1, 2, 4, 5, 7, 9, and 10)

2. Member of the Public (Items 1-4, 10, and 12)

3. Sharon Childs (Item 7)
Mayor Moore closed public comment.
(Video time: 00:41:46)
MOTION: Motion by Council Member Rennie to approve the consent calendar consisting of items one through thirteen. Seconded by Council Member Hudes.

VOTE: Motion passed unanimously.

VERBAL COMMUNICATIONS
The following individuals spoke during verbal communications:

1. Muffi Ghadiali

2. Jeff Suzuki

3. Sue Ann Lorig

4. Keith Blaine

5. Susan Bassi

6. Member of the Public

ITEM NO. 2.

PAGE 3 OF 5
SUBJECT: Draft Minutes of the Town Council Meeting of April 7, 2026 DATE: April 21, 2026

7. Monica Faria

PUBLIC HEARINGS

14. Adopt a resolution approving the Comprehensive Fee Schedule for FY 2026-27 to continue certain Department fees, rates, and charges, and amend certain fees, rates, and charges for FY 2026-27; and Adopt a resolution approving the Administrative Fine and Penalty Schedule for FY 2026-27 to continue certain department fines and amend certain fines for FY 2026-

27. RESOLUTIONS 2026-016 and 2026-017
Kristina Alfaro, Administrative Services Director, gave a presentation on the proposed changes to the fee schedule.

Mayor Moore opened public comment.

The following individuals spoke on this item:

1. Carin Yamamoto
Mayor Moore closed public comment.
(Video time: 01:32:43)
MOTION: Motion by Council Member Badame to approve the comprehensive fee schedule effective July 1, 2026, and the administrative fine and penalty schedule effective July 1, 2026, and adopt the related resolutions in attachment 1 and attachment 4.

AMENDMENTS: (1) to pull the adopt a bench fee until [Council] receive(s) further information from staff on two things: what have we actually been charging, and whether there are any lower cost alternatives; and (2) to increase the fine for the fireworks first time offender to $1,000, the second offence $1,250, and the third offence $1,500. Seconded by Council Member Rennie.

VOTE: Motion passed unanimously.

OTHER BUSINESS

15. Receive the West Valley Homeless Services Feasibility Study and Adopt a Resolution of Intent to Support Participation in a West Valley Homeless Services Implementation Task Force. RESOLUTION 2026-018
Joel Paulson, Community Development Director, introduced consultant Vera Gil, from Good City Company. Consultant Vera Gil gave a presentation on the task force.

Mayor Moore opened public comment.

The following individuals spoke on this item:

ITEM NO. 2.

PAGE 4 OF 5
SUBJECT: Draft Minutes of the Town Council Meeting of April 7, 2026 DATE: April 21, 2026

1. Carin Yamamoto

2. Lee Fagot
Mayor Moore closed public comment.
(Video time: 02:08:28)
MOTION: Motion by Council Member Badame to adopt the resolution to support the Town’s participation in a West Valley Homeless Services Implementation Task Force per attachment 4 and receive the [Feasibility] Study. Seconded by Vice Mayor Ristow.

VOTE: Motion passed unanimously.

Mayor Moore called a recess at 9:17 p.m.

Mayor Moore reconvened the meeting at 9:29 p.m.

16. Approve Legislative Priorities with Regard to State, Federal, and Regional Legislation.

Katy Nomura, Assistant Town Manager, presented the staff report.

Mayor Moore opened public comment.

No one spoke.

Mayor Moore closed public comment.
(Video time: 02:50:37)
MOTION: Motion by Council Member Badame to set the Town’s Strategic Priorities as the Town’s Legislative Priorities with regard to state, federal, and regional legislation.

Seconded by Vice Mayor Ristow.

VOTE: Motion passed 4-0-1. Council Member Hudes abstained.

COUNCIL MATTERS
- Council Member Badame stated she participated in a meeting of a resident wildfire advisory group; met with the Committee Chair of the Los Gatos Thrives Foundation; and participated in a Silicon Valley Animal Control Authority (SVACA) Board meeting. - Vice Mayor Ristow stated she attended the Silicon Valley at Home Elected Officials Roundtable, the California Department of Housing and Community Development (HCD) Advisory Commission meeting; spoke at NUMU during the ArtNow preview; attended the Wet Valley Community Services Chefs of Compassion fundraiser, the Los Gatos Chamber of Commerce Gala; met with potential Town Council candidates, and a representative for a developer who is interested in the Alberto Way property.

ITEM NO. 2.

PAGE 5 OF 5
SUBJECT: Draft Minutes of the Town Council Meeting of April 7, 2026 DATE: April 21, 2026
- Council Member Hudes stated he met with the Los Gatos Thrives Foundation; participated in the Sourcewise Advisory Committee, and participated in the Silicon Valley Regional Interoperability Authority Board of Directors meeting.
- Council Member Rennie stated he attended the Los Gatos Chamber of Commerce Gala; and met with the developer for Alberto Way.
- Mayor Moore stated he attended the Association of Bay Area Governments (ABAG) Executive Committee meeting, Gail Pelerin’s Woman of the Year celebration, the Cat’s Hill Bike Race, the Los Gatos Thrives Foundation monthly movie screening event, three Passover Seders, a meet and greet for Kiwanis, the Kiwanis easter egg hunt, the Wet Valley Community Services Chefs of Compassion fundraiser, the Los Gatos Chamber of Commerce Gala, an open house for L’Aterlier, and the grand opening for the European Piano Academy.

MANAGER MATTERS
- Commented on the Chamber of Commerce Event and the recognition that the Town Library received during the event.
- Stated the Town complies with the California Values Act but will take a case-by-case approach to immigration enforcement requests. Review of discretionary federal requests will be centralized to allow Town management to determine appropriate actions and provide staff direction, while considering specific circumstances and public safety.

ATTORNEY MATTERS AND CLOSED SESSION REPORT
Gabrielle Whelan, Town Attorney
- Stated the Town Council met in closed session earlier in the evening to discuss two matters of anticipated litigation, pursuant to Government Code Section 54956.9, and there is no reportable action taken.

ADJOURNMENT
The meeting adjourned at 10:03 p.m.

Respectfully Submitted:
_____________________________________
Jenna De Long, Deputy Town Clerk

ITEM NO. 2.

PREPARED BY: Eric Lemon
Finance and Accounting Manager
Reviewed by: Town Manager, Town Attorney, and Administrative Services Director 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
MEETING DATE: 04/21/2026
ITEM NO: 3
DATE: April 21, 2026
TO: Mayor and Town Council
FROM: Chris Constantin, Town Manager
SUBJECT: Receive the Monthly Financial and Investment Report for February 2026 RECOMMENDATION: Receive the Monthly Financial and Investment Reports for February 2026.

FISCAL IMPACT:

There is no fiscal impact from the receipt of this report.

STRATEGIC PRIORITY:

This item aligns with the strategic priority to ensure prudent financial management.

BACKGROUND:

California Government Code Section 41004 requires that the Town Treasurer submit to the Town Clerk and the legislative body a written report and accounting of all receipts, disbursements, and fund balances. The Administrative Services Director assumes the Town Treasurer role. Attachment 1 contains the February 2026 monthly Financial and Investment Report, which fulfills this requirement.

The February 2026 Monthly Financial and Investment Report was received by the Finance Commission at its April 13, 2026, regular meeting.

DISCUSSION:

The February 2026 Monthly Financial and Investment Report includes a Fund Balance Schedule, representing estimated funding available for all funds at the beginning of the fiscal year and at

ITEM NO. 3.

PAGE 2 OF 3
SUBJECT: Monthly Financial and Investment Report for February 2026 DATE: April 13, 2026
the end of the respective month.

As operations fluctuate month to month, there are differences between balances in one month and balances in another. Such differences may be significant due to the type of activity in those months and the timing of any estimates used in the presentation, based on the information available. This is demonstrated by the attached February 28, 2026, fund balance report.

In the case that the differences are extraordinary and unanticipated, we will ensure we present more information to explain the differences.

The difference between the February 28 and January 31 estimated fund balance is due to normal day-to-day fluctuations in revenues and expenditures.

Please note that the amount in the Fund Schedule differs from the Portfolio Allocation and Treasurer’s Cash Fund Balances Summary schedule because assets and liabilities are components of the Fund Balance.

As illustrated in the summary below, Ending Fund Balance = Cash + Assets - Liabilities, which represents the actual amount of funds available.

As of February 28, 2026, the Town’s financial position (Cash Plus Other Assets $90.90M, Liabilities $23.90M, and Fund Equity $67.00M) remains strong, and the Town has sufficient funds to meet the cash demands for the next six months.

As of February 28, 2026, the Town’s weighted portfolio yield for investments under management was 4.20%, which was 33 basis points above the Local Agency Investment Fund (LAIF) yield of 3.87% for the same reporting period. Currently, the LAIF portfolio’s weighted average maturity (WAM) is 258 days versus the Town’s longer WAM of 640 days. The Town’s assets under management reflect the Town’s selection of the 1-3 year benchmark investment strategy through the Town’s investment advisor to lock in higher yields at the top of the interest rate cycle. The longer maturities are balanced with shorter-term yields available on investments held with the State’s LAIF. The Town’s weighted average rate of return on investments under management of 4.20% at the close of February was 1 basis point lower when compared to the prior month’s return of 4.21% reported as of January 31, 2026.

ITEM NO. 3.

PAGE 3 OF 3
SUBJECT: Monthly Financial and Investment Report for February 2026 DATE: April 13, 2026
Since February 2025, LAIF yields decreased from 433 basis points (4.33%) to 387 basis points (3.87%) through the end of February 2026. The State LAIF pool typically lags the market when current market yields are either increasing or decreasing.

The Federal Open Market Committee implemented three rate cuts in 2025. The first, on September 17, reduced the federal funds target range by 25 basis points to 4.00%–4.25% amid slower economic growth in the first half of the year and emerging signs of labor-market softening. A second 25-basis-point cut on October 29 brought the range down to 3.75%–4.00% as labor-market weakness and broader economic uncertainty persisted. At its December 10 meeting, the Committee approved a final 25-basis-point reduction to 3.50%–3.75%, reflecting ongoing concerns about the economic outlook. These adjustments align with the FOMC's objective to promote maximum employment and achieve a year-over-year inflation target of 2%.

Labor market conditions continued to reflect a "low hiring, low firing" regime. Revisions to 2025 employment figures showed only 181,000 new jobs added for the full year, the lowest annual total outside of recession years since 2003. Initial jobless claims eased from 231,000 in early February due to severe winter weather to 212,000 by month-end. Continuing claims fell to 1.833 million in mid-February, the lowest level since June 2024.

The Town's investments are in compliance with the Town's Investment Policy dated March 18, 2025, and are also in compliance with the requirements of Section 53600 et seq. of the California State Code. Based on the information available, the Town has sufficient funds to meet the cash demands for the next six months.

CONCLUSION:

Receive the Monthly Financial and Investment Report for February 2026.

Attachments:

1. Financial and Investment Report (February 2026)

ITEM NO. 3.

Weighted Average YTM Portfolio Yield on Investments
under Management 4.20%
Weighted Average Maturity (days) 640
This Month Last Month One year ago
Portfolio Allocation & Treasurer's Cash Balances $77,392,752 $78,053,230 $69,759,388 Managed Investments $53,206,065
Local Agency Investment Fund $9,605,206
Reconciled Demand Deposit Balances $14,581,481
Portfolio Allocation & Treasurer's Cash Balances $77,392,752 Benchmarks/ References:

Town's Average Yield 4.20% 4.21% 4.44%
LAIF Yield for month 3.87% 3.93% 4.33%
3 mo. Treasury 3.66% 3.65% 4.29%
6 mo. Treasury 3.62% 3.62% 4.27%
2 yr. Treasury 3.37% 3.52% 3.99%
5 yr. Treasury 3.50% 3.79% 4.02%
10 Yr. Treasury 3.94% 4.24% 4.21%
Town of Los Gatos
Summary Investment Information
February 28, 2026
0 - 1 year
35%
1 - 2 years
26%
2 - 3 years
17%
3 - 5 years
22%
Portfolio Maturity Profile
Compliance: The Town's investments are in compliance with the Town's investment policy dated March 18, 2025, and also in compliance with the requirements of Section 53600 at seq. of the California State Code. Based on the information available, the Town has sufficient funds to meet the cash demands for the next six months.

ATTACHMENT 1
1

ITEM NO. 3.

Month YTD
Cash & Investment Balances - Beginning of Month/Period $ 78,053,229.67 $ 81,558,113.19 Receipts 3,975,089.85 54,370,159.84
Disbursements (4,635,568.01) (58,535,521.52)
Cash & Investment Balances - End of Month/Period $77,392,751.51 $77,392,751.51 Portfolio Allocation Amount % of Portfolio
Max. % or $ Allowed
per State Law or Policy
BNY MM $101,071.46 0.16% 20% of Town Portfolio
US Treasury Notes $24,129,270.12 38.42% No Max. on US Treasuries Government Agency Debenture Notes $14,316,775.31 22.79% No Max. on Non-Mortgage Backed Corporate Medium Term Bonds $14,658,947.80 23.34% 30% of Town Portfolio Local Agency Investment Fund $9,605,206.08 15.29% $75 M per State Law Subtotal - Investments 62,811,270.77 100.00%
Reconciled Demand Deposit Balances 14,581,480.74
Total Portfolio Allocation & Treasurer's Cash Balances $77,392,751.51

0.0401

0.0388
Town of Los Gatos
Portfolio Allocation & Treasurer's Cash Balances
February 28, 2026
BNY MM

0.16%
US Treasury Notes

38.42%
Government Agency
Debenture Notes

22.79%
Corporate Medium Term
Bonds

23.34%
Local Agency Investment Fund

15.29%
Portfolio Investment Allocation
$69.8 M
$77.4 M
$0.0 M
$10.0 M
$20.0 M
$30.0 M
$40.0 M
$50.0 M
$60.0 M
$70.0 M
$80.0 M
$90.0 M
Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Treasurer's Fund Balances
2

ITEM NO. 3.

February 2026 February 2026 February 2026
Beginning Deposits Interest/ Ending
Balance Realized Gain/Adj. Earnings Withdrawals Balance Non-Treasury Funds:

Cert. of Participation 2002 Ser A Reserve Fund $ 698,819.89 $ - $ 1,894.91 $ - $ 700,714.80 Note 1 Cert. of Participation 2010 Ser Lease Payment Fund 72,470.81 - 69.36 72,462.50 77.67 Note 2 Cert. of Participation 2002 Ser A Lease Payment Fund 86,790.82 - 96.20 86,750.00 137.02 Note 1 Cert. of Participation 2010 Ser Reserve Fund 1,307,454.86 - 3,970.25 - 1,311,425.11 Note 2 Total Restricted Funds: $ 2,165,536.38 $ - $ 6,030.72 $ 159,212.50 $ 2,012,354.60 CEPPT IRS Section 115 Trust 3,272,329.63 690,000.00 68,779.36 590.29 $ 4,030,518.70 Note 3 Grand Total COP's and CEPPT Trust $ 5,437,866.01 $ 690,000.00 $ 74,810.08 $ 159,802.79 $ 6,042,873.30 These accounts are not part of the Treasurer's fund balances reported elsewhere in this report, as they are for separate and distinct entities.

Note 1: The three original funds for the Certificates of Participation 2002 Series A consist of construction funds which will be expended over the next few years, reserve funds which will guarantee the payment of lease payments, and a third fund for the disbursement of lease payments and initial delivery costs.

Note 2: The 2010 COP Funds are all for the Library construction, reserves to guarantee lease payments, and a lease payment fund for the life of the COP issue. The COI fund was closed in September 2010.

Note 3: The CEPPT IRS Section 115 Trust was established as an irrevocable trust dedicated to accumulate resources to fund the Town's unfunded liabilities related to pension and other post employment benefits.

Town of Los Gatos
Non-Treasury Restricted Fund Balances
February 28, 2026
3

ITEM NO. 3.

July 2025 $ 238,713.97
August 2025 $ 238,367.28
September 2025 $ 259,685.13
October 2025 $ 228,769.00
November 2025 $ 220,968.79
December 2025 $ 234,197.60
January 2026 $ 228,526.08
February 2026 $ 205,910.96
March 2026 $ -
April 2026 $ -
May 2026 $ -
June 2026 $ -
$ 1,855,138.81
Town of Los Gatos
Statement of Interest Earned
February 28, 2026
4

ITEM NO. 3.

Original Issue Market Value Maturity Yield to Interest Interest Interest Days Deposit Par Original (Discount) Market Above (Under) Purchased Date or Maturity Received Earned Earned to Institution CUSIP # Security Coupon Date Value Cost Premium Value Cost Interest Call Date or Call to Date Prior Yrs. Current FY Maturity Apple 037833DB3 Corporate Bond 2.90% 12/20/2022 1,300,000.00 1,228,591.00 (71,409.00) 1,287,429.00 58,838.00 6/21/2027 4.19% $ 102,837.22 $ 135,426.07 $ 35,653.88 478 Home Depot 437076BM3 Corporate Bond 3.00% 8/4/2022 1,000,000.00 991,960.00 (8,040.00) 999,250.00 7,290.00 4/1/2026 3.04% $ 94,750.00 $ 93,590.54 $ 21,434.97 32 FFCB 3133EN5V8 Gov. Agency Debenture 4.13% 1/17/2023 236,000.00 239,174.20 3,174.20 236,951.08 (2,223.12) 1/11/2027 3.76% $ 29,042.75 $ 21,918.24 $ 5,950.99 317 US Treasury 91282CBT7 US Treasury Note 0.75% 9/30/2022 800,000.00 712,565.18 (87,434.82) 798,112.00 85,546.82 3/31/2026 4.14% $ 18,000.00 $ 85,193.12 $ 20,619.45 31 JP Morgan Chase 46625HRS1 Corporate Bond 3.20% 9/23/2022 500,000.00 474,660.00 (25,340.00) 499,070.00 24,410.00 3/15/2026 4.70% $ 51,644.44 $ 64,505.94 $ 15,504.40 15 FHLB 3130AQF65 Gov. Agency Debenture 1.25% 11/30/2022 1,300,000.00 1,160,559.40 (139,440.60) 1,276,990.00 116,430.60 12/21/2026 4.15% $ 49,697.92 $ 130,709.25 $ 33,682.24 296 FHLB 3130APJH9 Gov. Agency Debenture 1.00% 1/17/2023 1,000,000.00 907,010.00 (92,990.00) 991,780.00 84,770.00 10/28/2026 4.17% $ 28,354.17 $ 84,829.28 $ 23,031.86 242 FFCB 3133EN5N6 Gov. Agency Debenture 4.00% 2/8/2023 1,700,000.00 1,706,732.00 6,732.00 1,717,289.00 10,557.00 1/6/2028 3.91% $ 197,955.56 $ 159,363.33 $ 44,358.86 677 American Honda 02665WED9 Corporate Bond 4.70% 5/11/2023 600,000.00 608,856.00 8,856.00 609,348.00 492.00 1/12/2028 4.34% $ 75,278.33 $ 56,288.41 $ 17,513.55 683 US Treasury 91282CEF4 US Treasury Note 2.50% 6/9/2023 1,500,000.00 1,416,626.12 (83,373.88) 1,484,295.00 67,668.88 3/31/2027 4.09% $ 86,577.87 $ 122,333.72 $ 39,530.71 396 Colgate-Palmolive 194162AR4 Corporate Bond 4.60% 7/14/2023 500,000.00 504,655.00 4,655.00 509,190.00 4,535.00 2/1/2028 4.37% $ 49,002.79 $ 43,173.83 $ 14,632.13 703 FFCB 3133EPQC2 Gov. Agency Debenture 4.63% 7/17/2023 500,000.00 501,957.50 1,957.50 501,380.00 (577.50) 7/17/2026 4.48% $ 57,812.50 $ 43,961.07 $ 14,961.54 139 FFCB 3133EPBM6 Gov. Agency Debenture 4.13% 7/14/2023 600,000.00 596,220.00 (3,780.00) 605,652.00 9,432.00 8/23/2027 4.29% $ 64,556.25 $ 50,424.13 $ 17,089.35 541 PNC Bank 69353RFJ2 Corporate Bond 3.25% 7/25/2023 1,000,000.00 921,490.00 (78,510.00) 992,140.00 70,650.00 12/23/2027 5.23% $ 80,979.17 $ 97,247.67 $ 33,471.93 663 US Treasury 91282CFU0 US Treasury Note 4.13% 7/31/2023 1,300,000.00 1,290,660.60 (9,339.40) 1,314,781.00 24,120.40 10/31/2027 4.31% $ 120,656.25 $ 107,052.11 $ 37,162.38 610 Toyota Motor Credit 89236TKL8 Corporate Bond 5.45% 8/25/2023 1,600,000.00 1,617,168.00 17,168.00 1,647,200.00 30,032.00 11/10/2027 5.16% $ 192,566.67 $ 153,725.55 $ 55,341.20 620 US Treasury 912810FE3 US Treasury Note 5.50% 10/3/2023 1,200,000.00 1,238,207.14 38,207.14 1,259,772.00 21,564.86 8/15/2028 4.76% $ 156,211.96 $ 101,335.84 $ 38,717.94 899 FFCB 3133EPUW3 Gov. Agency Debenture 4.75% 10/13/2023 1,000,000.00 994,338.00 (5,662.00) 1,005,400.00 11,062.00 9/1/2026 4.96% $ 89,458.33 $ 84,828.57 $ 32,928.66 185 US Treasury 91282CEW7 US Treasury Note 3.25% 10/16/2023 1,000,000.00 950,039.06 (49,960.94) 997,420.00 47,380.94 6/30/2027 4.73% $ 71,711.96 $ 78,477.53 $ 30,610.02 487 US Treasury 91282CEN7 US Treasury Note 2.75% 10/31/2023 1,300,000.00 1,214,336.39 (85,663.61) 1,289,184.00 74,847.61 4/30/2027 4.82% $ 71,500.00 $ 100,336.49 $ 40,101.59 426 US Treasury 91282CCH2 US Treasury Note 1.25% 12/21/2023 900,000.00 798,647.55 (101,352.45) 857,457.00 58,809.45 6/30/2028 3.99% $ 22,805.71 $ 51,319.84 $ 22,389.09 853 FNMA 3135G0Q22 Gov. Agency Debenture 1.88% 12/21/2023 900,000.00 845,676.00 (54,324.00) 891,036.00 45,360.00 9/24/2026 4.22% $ 29,671.88 $ 55,770.03 $ 24,330.55 208 US Treasury 91282CFB2 US Treasury Note 2.75% 1/2/2024 1,000,000.00 960,354.91 (39,645.09) 990,470.00 30,115.09 7/31/2027 3.95% $ 57,167.12 $ 57,605.73 $ 25,684.76 518 US Treasury 91282CHE4 US Treasury Note 3.63% 1/17/2024 1,800,000.00 1,775,185.72 (24,814.28) 1,809,414.00 34,228.28 5/31/2028 3.97% $ 121,942.63 $ 102,986.91 $ 47,218.53 823 JP Morgan Chase 46647PDG8 Corporate Bond 4.85% 2/1/2024 1,400,000.00 1,396,528.00 (3,472.00) 1,416,422.00 19,894.00 7/25/2027 4.93% $ 134,696.10 $ 97,231.80 $ 45,878.31 512 US Bancorp 91159HJF8 Corporate Bond 4.55% 2/5/2024 1,000,000.00 989,200.00 (10,800.00) 1,008,840.00 19,640.00 7/22/2027 4.89% $ 89,317.67 $ 68,041.60 $ 32,356.38 509 Treasury 91282CHB0 US Treasury Note 3.63% 2/23/2024 1,175,000.00 1,151,962.92 (23,037.08) 1,174,753.25 22,790.33 5/15/2026 4.56% $ 73,485.92 $ 71,517.53 $ 35,251.04 76 FHLB 3130AXB31 Gov. Agency Debenture 4.88% 2/27/2024 1,000,000.00 1,003,060.00 3,060.00 1,000,330.00 (2,730.00) 3/13/2026 4.72% $ 76,104.17 $ 63,303.13 $ 31,457.39 13 FFCB 3133EP5U5 Gov. Agency Debenture 4.13% 3/28/2024 1,700,000.00 1,687,981.00 (12,019.00) 1,733,048.00 45,067.00 3/20/2029 4.28% $ 103,629.17 $ 91,219.09 $ 48,292.46 1116 US Treasury 9128285M8 US Treasury Note 3.13% 4/30/2024 1,200,000.00 1,123,832.14 (76,167.86) 1,192,080.00 68,247.86 11/15/2028 4.69% $ 57,795.34 $ 63,313.82 $ 36,115.63 991 Cisco Systems 17275RBR2 Corporate Bond 4.85% 5/15/2024 1,000,000.00 999,130.00 (870.00) 1,030,020.00 30,890.00 1/26/2029 4.87% $ 86,356.94 $ 54,820.58 $ 32,412.17 1063 Home Depot 437076CW0 Corporate Bond 4.90% 5/17/2024 1,000,000.00 1,001,790.00 1,790.00 1,031,670.00 29,880.00 4/15/2029 4.86% $ 69,144.44 $ 54,498.76 $ 32,379.46 1142 Treasury 91282CJR3 US Treasury Note 3.75% 5/31/2024 1,200,000.00 1,154,629.02 (45,370.98) 1,211,856.00 57,226.98 12/31/2028 4.68% $ 71,208.79 $ 59,398.06 $ 36,541.08 1037 FHLB 3130B1BT3 Gov. Agency Debenture 4.88% 7/2/2024 1,150,000.00 1,150,966.00 966.00 1,153,657.00 2,691.00 6/12/2026 4.82% $ 75,372.92 $ 55,261.42 $ 36,993.18 104 Citibank 17325FBK3 Corporate Bond 4.84% 8/15/2024 1,250,000.00 1,263,062.50 13,062.50 1,284,375.00 21,312.50 7/6/2029 4.60% $ 89,200.62 $ 50,520.38 $ 38,484.18 1224 FNMA 3135G05Y5 Gov. Agency Debenture 0.75% 9/10/2024 1,100,000.00 1,010,724.00 (89,276.00) 1,054,614.00 43,890.00 10/8/2027 3.56% $ 8,891.67 $ 29,915.45 $ 24,810.42 587 US Treasury 91282CFL0 US Treasury Note 3.88% 12/3/2024 1,100,000.00 1,088,144.31 (11,855.69) 1,116,071.00 27,926.69 9/30/2029 4.12% $ 35,130.49 $ 25,813.46 $ 30,012.78 1310 FHLB 3130ATUT2 Gov. Agency Debenture 4.50% 2/12/2025 505,000.00 508,253.21 3,253.21 523,538.55 15,285.34 12/14/2029 4.35% $ 19,063.75 $ 8,337.70 $ 14,681.61 1385 FFCB 3133ER5X5 Gov. Agency Debenture 3.88% 3/12/2025 1,000,000.00 998,480.00 (1,520.00) 1,007,560.00 9,080.00 3/7/2028 3.93% $ 18,836.81 $ 11,831.34 $ 26,136.50 738 Treasury 91282CJF9 US Treasury Note 4.88% 3/31/2025 1,100,000.00 1,130,167.75 30,167.75 1,141,382.00 11,214.25 10/31/2028 4.04% $ 31,256.56 $ 11,273.90 $ 30,105.02 976 State Street Corp 857477CD3 Corporate Bond 5.27% 4/30/2025 800,000.00 811,184.00 11,184.00 803,488.00 (7,696.00) 8/3/2026 4.04% $ 31,983.47 $ 5,565.50 $ 22,170.75 156 Freddie Mac 3134HAW33 Gov. Agency Debenture 4.75% 4/30/2025 1,000,000.00 1,005,644.00 5,644.00 1,002,570.00 (3,074.00) 12/18/2029 4.23% $ 30,743.07 $ 7,735.00 $ 30,813.19 1389 US Treasury 91282CNG2 US Treasury Note 4.00% 6/30/2025 660,000.00 665,184.24 5,184.24 673,589.40 8,405.16 5/31/2030 3.82% $ 11,036.08 $ - $ 16,874.46 1553 US Treasury 91282CMG3 US Treasury Note 4.25% 8/4/2025 825,000.00 842,308.43 17,308.43 848,817.75 6,509.32 1/31/2030 3.74% $ 17,150.14 $ - $ 17,786.94 1433 US Treasury 91282CMA6 US Treasury Note 4.13% 8/25/2025 1,200,000.00 1,218,847.77 18,847.77 1,228,452.00 9,604.23 11/30/2029 3.72% $ 13,118.86 $ - $ 23,098.06 1371 US Treasury 91282CHR5 US Treasury Note 4.00% 9/23/2025 950,000.00 967,036.38 17,036.38 969,817.00 2,780.62 7/31/2030 3.59% $ 13,423.92 $ - $ 14,930.27 1614 US Treasury 91282CGQ8 US Treasury Note 4.00% 10/3/2025 1,000,000.00 1,013,362.72 13,362.72 1,019,920.00 6,557.28 2/28/2030 3.67% $ 16,353.59 $ - $ 14,990.04 1461 State Street Corp 857477DB6 Corporate Bond 4.83% 11/10/2025 580,000.00 596,535.80 16,535.80 597,951.00 1,415.20 1,246.09 4/24/2030 4.13% $ (1,246.09) $ - $ 7,330.91 1516 US Treasury 91282CKA8 US Treasury Note 4.13% 12/17/2025 1,150,000.00 1,157,775.34 7,775.34 1,156,359.50 (1,415.84) 2/15/2027 3.52% $ 7,734.37 $ - $ 8,151.97 352 US Treasury 91282CHW4 US Treasury Note 4.13% 12/17/2025 1,150,000.00 1,170,308.54 20,308.54 1,179,647.00 9,338.46 8/31/2030 3.71% $ 9,566.13 $ - $ 8,624.56 1645 US Treasury 91282CHZ7 US Treasury Note 4.63% 1/13/2026 1,050,000.00 1,089,087.89 39,087.89 1,099,591.50 10,503.61 14,008.41 9/30/2030 3.75% $ (14,008.41) $ - $ 5,075.44 1675 Morgan Stanley Pvt Bank 61776NU43 Corporate Bond 4.21% 2/26/2026 1,250,000.00 1,254,137.50 4,137.50 1,256,187.50 2,050.00 3,510.83 2/8/2029 4.09% $ (3,510.83) $ - $ 280.89 1076 Subtotal $ 54,031,000.00 $ 53,104,993.23 $ (926,006.77) $ 54,487,617.53 $ 1,382,624.30 $ 18,765.33 $ 3,092,017.14 $ 2,912,001.71 $ 1,393,955.63 BNY MM Money Market 101,071.46 101,071.46 0.00 0.00% 1
LAIF State Investment Pool 9,605,206.08 9,626,159.67 20,953.59 3.87% 327,429.64 1 62,811,270.77 $64,214,848.66 $1,403,577.89 $18,765.33 $ 3,092,017.14 $ 2,912,001.71 $ 1,721,385.27 Matured Assets
US Treasury 91282CAB7 US Treasury Note 0.25% 11/15/2023 675,000.00 623,900.39 (51,099.61) 7/31/2025 4.92% $ 2,884.34 $ 51,302.62 $ 2,681.92 FHLB 3135G05X7 Gov. Agency Debenture 0.38% 6/10/2022 1,200,000.00 1,102,952.40 (97,047.60) 8/25/2025 3.04% $ 14,437.50 $ 106,169.42 $ 5,327.50 FFCB 3133ENP95 Gov. Agency Debenture 4.25% 9/30/2022 900,000.00 900,939.60 939.60 9/30/2025 4.14% $ 114,750.00 $ 104,352.97 $ 9,562.22 Freddie Mac 3137EAEX3 Gov. Agency Debenture 0.38% 5/1/2023 750,000.00 689,032.50 (60,967.50) 9/23/2025 3.97% $ 6,734.37 $ 61,146.74 $ 6,570.76 FannieMae 3135G06G3 Gov. Agency Debenture 0.50% 7/14/2023 500,000.00 455,157.00 (44,843.00) 11/7/2025 4.63% $ 5,784.72 $ 42,871.33 $ 7,773.04 US Treasury 91282CGA3 US Treasury Note 4.00% 6/20/2023 2,100,000.00 2,080,558.59 (19,441.41) 12/15/2025 4.40% $ 208,852.46 $ 186,379.78 $ 42,256.15 American Honda 02665WEY3 Corporate Bond 4.95% 6/27/2024 1,000,000.00 995,640.00 (4,360.00) 1/9/2026 5.25% $ 51,287.50 $ 52,766.88 $ 26,383.44 Pepsico Inc 713448DF2 Corporate Bond 2.85% 10/16/2023 1,000,000.00 947,570.00 (52,430.00) 2/24/2026 5.24% $ 67,133.33 $ 86,538.35 $ 33,198.50 Total Investments "Matured" $ 133,753.54
Total Interest FY 24_25 Matured and Current $ 1,855,138.81 Maturity Profile Amount Percent
0-1 year $ 21,809,126.08 35%
1-2 years $16,412,181.08 26%
2-3 years $10,472,416.82 17%
3-5 years $ 14,117,546.79 22%
$62,811,270.77 100%
Town of Los Gatos
Investment Schedule
February 28, 2026
5

ITEM NO. 3.

Date Cusip/Id Description Transaction Type Trade Date Settlement Date Par Coupon Maturity Date Price Principal Interest Transaction
Total
2/3/2026 Cash-USD Cash-USD

SHORT TERM INVESTMENT
FUND INCOME 2/3/2026 2/3/2026 718.65 0.000% 100.00 - - 718.65 2/3/2026 857477CD3
STATE STREET CORP 5.272% 03AUG2026
(CALLABLE 03JUL26) BOND INTEREST 2/3/2026 2/3/2026 800,000.00 5.272% 8/3/2026 - - 21,088.00 21,088.00 2/6/2026 17325FBK3
CITIBANK NA 4.838% 06AUG2029
(CALLABLE 06JUL29) BOND INTEREST 2/6/2026 2/6/2026 1,250,000.00 4.838% 8/6/2029 - - 30,237.50 30,237.50 2/17/2026 912810FE3 USA TREASURY 5.5% 15AUG2028 BOND INTEREST 2/15/2026 2/15/2026 1,200,000.00 5.500% 8/15/2028 - - 33,000.00 33,000.00 2/17/2026 91282CKA8 USA TREASURY 4.125% 15FEB2027 BOND INTEREST 2/15/2026 2/15/2026 1,150,000.00 4.125% 2/15/2027 - - 23,718.75 23,718.75 2/23/2026 3133EPBM6
FEDERAL FARM CREDIT BANK 4.125%
23AUG2027 BOND INTEREST 2/23/2026 2/23/2026 600,000.00 4.125% 8/23/2027 - - 12,375.00 12,375.00 2/24/2026 713448DF2
PEPSICO INC 2.85% 24FEB2026
CALLABLE REDEMPTION 2/24/2026 2/24/2026 1,000,000.00 0.000% 2/24/2026 100.00 1,000,000.00 - 1,000,000.00 2/24/2026 713448DF2
PEPSICO INC 2.85% 24FEB2026
CALLABLE BOND INTEREST 2/24/2026 2/24/2026 1,000,000.00 0.000% 2/24/2026 - - 14,250.00 14,250.00 2/26/2026 61776NU43
MORGAN STANLEY PVT BANK 4.213%
08FEB2030 (CALLABLE 08FEB29) PURCHASE 2/25/2026 2/26/2026 1,250,000.00 4.213% 2/8/2030 100.33 1,254,137.50 3,510.83 1,257,648.33 2/26/2026 17275RBR2
CISCO SYSTEMS INC 4.85% 26FEB2029
(CALLABLE 26JAN29) BOND INTEREST 2/26/2026 2/26/2026 1,000,000.00 4.850% 2/26/2029 - - 24,250.00 24,250.00 3/2/2026 91282CHW4 USA TREASURY 4.125% 31AUG2030 BOND INTEREST 2/28/2026 2/28/2026 1,150,000.00 4.125% 8/31/2030 - - 23,718.75 23,718.75 3/2/2026 91282CGQ8 USA TREASURY 4% 28FEB2030 BOND INTEREST 2/28/2026 2/28/2026 1,000,000.00 4.000% 2/28/2030 - - 20,000.00 20,000.00 Town of Los Gatos
Investment Transaction Detail
February 28, 2026
6

ITEM NO. 3.

CUSIP Security description Maturity
date Par/Shares Total market value ($) S&P rating Moody's rating Insight ESG
rating Environment Social Governance
02665WED9 AMERICAN HONDA FINANCE 4.7% 12JAN2028 1/12/2028 600,000 612,863 A- A3 3 2 4 3 037833DB3 APPLE INC 2.9% 12SEP2027 (CALLABLE 12JUN27) 9/12/2027 1,300,000 1,304,636 AA+ Aaa 5 2 5 5 17275RBR2 CISCO SYSTEMS INC 4.85% 26FEB2029 (CALLABLE 26JAN29) 2/26/2029 1,000,000 1,030,095 AA- A1 2 1 3 3 17325FBK3 CITIBANK NA 4.838% 06AUG2029 (CALLABLE 06JUL29) 8/6/2029 1,250,000 1,287,665 A+ Aa3 3 1 2 4 194162AR4 COLGATE-PALMOLIVE CO 4.6% 01MAR2028 (CALLABLE 01FEB28) 3/1/2028 500,000 520,035 A+ Aa3 3 3 3 2 437076CW0 HOME DEPOT INC 4.9% 15APR2029 (CALLABLE 15MAR29) 4/15/2029 1,000,000 1,049,470 A A2 3 3 3 3 437076BM3 HOME DEPOT INC 3% 01APR2026 (CALLABLE 29MAR26) 4/1/2026 1,000,000 1,011,500 A A2 3 3 3 3 46625HRS1 JPMORGAN CHASE & CO 3.2% 15JUN2026 (CALLABLE 29MAR26) 6/15/2026 500,000 502,313 A A1 3 2 3 5 46647PDG8 JPMORGAN CHASE & CO 4.851% 25JUL2028 (CALLABLE 25JUL27) 7/25/2028 1,400,000 1,422,446 A A1 3 2 3 5 61776NU43 MORGAN STANLEY PVT BANK 4.213% 08FEB2030 (CALLABLE 08FEB29) 2/8/2030 1,250,000 1,259,748 A+ Aa3 3 1 3 4 69353RFJ2 PNC BANK NA 3.25% 22JAN2028 (CALLABLE 23DEC27) 1/22/2028 1,000,000 995,262 A A2 3 3 3 2 857477CD3 STATE STREET CORP 5.272% 03AUG2026 (CALLABLE 03JUL26) 8/3/2026 800,000 806,397 A Aa3 1 1 2 2 857477DB6 STATE STREET CORP 4.834% 24APR2030 (CALLABLE 24MAR30) 4/24/2030 580,000 607,133 A Aa3 1 1 2 2 89236TKL8 TOYOTA MOTOR CREDIT CORP 5.45% 10NOV2027 11/10/2027 1,600,000 1,673,170 A+ A1 3 1 3 4 91159HJF8 US BANCORP 4.548% 22JUL2028 (CALLABLE 22JUL27) 7/22/2028 1,000,000 1,013,118 A A3 3 2 3 3 Total Corporate / weighted average 14,780,000 15,095,850 3 2 3 4 ESG ratings are from 1 to 5, with 1 as the highest rating and 5 as the lowest. All ratings are weighted by industry rankings, based on the importance of the category within the individual industry

TOWN OF LOS GATOS, CA
Insight ESG ratings as of February 28, 2026
7

ITEM NO. 3.

Fund Schedule
Fund
Number Fund Description
Current
Revenue
Current
Expenditure
Transfer
In
Transfer
Out

GENERAL FUND
Non-Spendable:

Loans Receivable 159,000 - - - - - 159,000
Restricted Fund Balances:

Pension 3,090,731 - - - - - 3,090,731
Land Held for Resale - - - - - - -
Committed Fund Balances:

Budget Stabilization 7,870,639 - - - - - 7,870,639
Catastrophic 7,870,639 - - - - - 7,870,639
Pension/OPEB 1,300,000 - - - - - 1,300,000
Measure G District Sales Tax - - - - - - -
Assigned Fund Balances:

Open Space 410,000 - - - - - 410,000
Sustainability 140,553 - - - - - 140,553
Capital/Special Projects 1,983,271 - - - - - 1,983,271
Carryover Encumbrances 6,367 - - - - - 6,367
Compensated Absences 1,519,243 - - - - - 1,519,243
ERAF Risk Reserve - - - - - - -
Market Fluctuations 1,201,824 - - - - - 1,201,824
Council Priorities - Economic Recovery - - - - - - -
Unassigned Fund Balances:
111 Other Unassigned Fund Balance Reserve (Pre YE distribution) 10,211,049 (808,831) 3,817,470 (5,048,778) - - 8,170,910 General Fund Total 35,763,316 (808,831) 3,817,470 (5,048,778) - - 33,723,177 * Interfund transfers and Council Priorities/Economic Recovery funding allocation to be performed as part of the fiscal year end closing entries.

February 2026 Prior Year
Carryforward
7/1/2025*
Increase/
(Decrease)
July-January
Estimated Fund
Balance
2/28/2026*
8

ITEM NO. 3.

Fund Schedule
Fund
Number Fund Description
Current
Revenue
Current
Expenditure
Transfer
In
Transfer
Out

SPECIAL REVENUE
211/212 CDBG 166,653 - - - - - 166,653
222 Urban Runoff (NPDES) 664,168 836 13,641 (12,342) - - 666,303 231-236 Landscape & Lighting Districts 193,606 3,281 915 (2,100) - - 195,702 251 Los Gatos Theatre 381,120 105,139 44,549 (4,739) - - 526,069 261-264,269 Library Trusts 559,745 44,304 4,000 (1,754) - - 606,295 Special Revenue Total 1,965,292 153,560 63,105 (20,935) - - 2,161,022

CAPITAL PROJECTS
411 GFAR - General Fund Appropriated Reserve 16,974,946 1,069,749 82,165 (54,697) - - 18,072,163 412 Community Center Development 819,604 - - - - - 819,604 421 Grant Funded Projects (1,577,430) 852,101 232,153 (7,785) - - (500,961) 461-463 Storm Basin Projects 2,825,234 57,501 20,564 - - - 2,903,299 471 Traffic Mitigation Projects 676,482 - - - - - 676,482 472 Utility Undergrounding Projects 3,763,913 20,490 - - - - 3,784,403 481 Gas Tax Projects 2,130,548 (73,273) 149,315 (249) - - 2,206,341 Capital Projects Total 25,613,297 1,926,568 484,197 (62,731) - - 27,961,331

INTERNAL SERVICE FUNDS
611 Town General Liability 208,746 (734,362) - (5,309) - - (530,925) 612 Workers Compensation 1,259,972 (9,427) 26,702 (51,644) - - 1,225,603 621 Information Technology 2,585,103 (363,863) 8,195 (38,143) - - 2,191,292 631 Vehicle & Equipment Replacement 3,890,428 408,484 19,964 - - - 4,318,876 633 Facility Maintenance 820,099 9,014 5,884 (111,742) - - 723,255 Internal Service Funds Total 8,764,348 (690,154) 60,745 (206,838) - - 7,928,101 Trust/Agency
942 RDA Successor Agency (3,037,146) (1,735,969) - (156) - - (4,773,271) Trust/Agency Fund Total (3,037,146) (1,735,969) - (156) - - (4,773,271) Total Town 69,069,107 (1,154,826) 4,425,517 (5,339,438) - - 67,000,360 * Interfund transfers and Council Priorities/Economic Recovery funding allocation to be performed as part of the fiscal year end closing entries.

Deposit Accounts of Interest:
111-23541 General Plan Update deposit account balance $616,430.62 111-23521 BMP Housing deposit account balance $3,723,190.79 Prior Year
Carryforward
7/1/2025*
Increase/
(Decrease)
July-January
February 2026 Estimated Fund
Balance
2/28/2026*
9

ITEM NO. 3.

PREPARED BY: Tyler Thomas
Superintendent
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, Administrative Services Director, and Parks and Public Works Director
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
MEETING DATE: 04/21/2026
ITEM NO: 4
DATE: April 21, 2026
TO: Mayor and Town Council
FROM: Chris Constantin, Town Manager
SUBJECT: Authorize the Town Manager to Execute an Agreement for Construction Services with Saviano, Co., Inc., and Authorize a 10% Construction Contingency for a Total Project Authorization Amount of $107,801.38 (La Rinconada Sports Court Resurfacing Project)
RECOMMENDATION: Authorize the Town Manager to execute a construction agreement with Saviano, Co., Inc. in an amount of $98,001.25, to complete the La Rinconada Sports Court Resurfacing Project and authorize a 10% construction contingency of $9,800.13 for a total project authorization amount not to exceed $107,801.38

FISCAL IMPACT
Sufficient funding is available in the FY 2025-26 Sport Court Resurfacing Capital Improvement Project budget (CIP No. 831-4611, 4118414) for the full cost of the recommended contract and contingency expenses. No additional appropriation is required. A ten percent (10%) construction contingency is recommended, consistent with industry standards for projects of this type. The contingency accounts for potential unforeseen conditions, including subsurface repairs, additional crack remediation, or minor scope adjustments identified during construction.

STRATEGIC PRIORITY:

This item does not directly address a Strategic Priority; however, it aligns with the Core Goal of Quality Public Infrastructure.

ITEM NO. 4.

PAGE 2 OF 3
SUBJECT: Authorize the Town Manager to Execute an Agreement with Saviano, Co., Inc. for La Rinconada Sports Court Resurfacing Project
DATE: April 21, 2026
BACKGROUND:

The La Rinconada Park sports court is a heavily utilized recreational facility that supports both tennis and pickleball activities. Since the introduction of pickleball programming in 2018, use of the court has increased significantly, with regular programmed activities and daily open play contributing to ongoing wear of the facility.

Over time, the court surface has experienced deterioration, including cracking and surface degradation due to weather exposure and sustained high usage. Resurfacing is necessary to maintain a safe, functional, and high-quality recreational amenity for the community.

In addition to increased use, the Town has received ongoing community feedback regarding noise associated with pickleball activity and concerns related to early morning and evening court access. As a result, this project includes operational improvements such as installation of sound-reducing netting and a timed gate lock to better manage hours of use.

This project was initially scoped to include improvements at both La Rinconada Park and Blossom Hill Park; however, due to site constraints and potential conflicts between tennis and pickleball uses at Blossom Hill Park, the project scope was refined through the Capital Improvement Program process to focus available funding on improvements at La Rinconada Park.

DISCUSSION:

The project is being advanced to restore the condition of the existing court surface and to implement operational improvements. This project focuses on maintaining and improving the existing facility at La Rinconada Park to meet current activity needs for tennis and pickleball.

The proposed project includes repairing current cracks in the existing surface, repaving the court with 1.5 inches of asphalt, resurfacing and restriping the new asphalt for pickleball and tennis, adding a new tennis net, putting in a new entry gate with a panic bar and electronic timed lock, and placing sound netting on three sides of the court.

The project was bid for construction on February 6, 2026 and bids were opened on February 25, 2026. Three bids were received and Saviano Co., Inc. was the low bidder. A Bid summary is presented in Attachment 2.

Saviano Co. Inc. has demonstrated experience performing similar work for public agencies and is qualified to complete the project in accordance with Town standards. A 10% contingency is recommended to address any unforeseen site conditions, including subsurface issues or additional repairs that may be identified during construction. Attachment 1 is the proposed construction agreement.

ITEM NO. 4.

PAGE 3 OF 3
SUBJECT: Authorize the Town Manager to Execute an Agreement with Saviano, Co., Inc. for La Rinconada Sports Court Resurfacing Project
DATE: April 21, 2026
Construction is anticipated to begin in May 2026 and be completed by July 2026. The construction contract requires completion within 80 calendar days and includes liquidated damages for delays beyond the approved schedule. If the recommended maintenance action is not taken, the condition of the court surface will continue to deteriorate, potentially resulting in safety concerns, increased maintenance costs, and reduced usability of the facility.

CONCLUSION:

Staff recommend that the Town Council authorize the Town Manager to execute a construction agreement with Saviano, Co., Inc. for the La Rinconada Sports Court Resurfacing Project including a 10% construction contingency.

COORDINATION:

This report has been coordinated with the Finance Department and the Town Attorney’s Office.

ENVIRONMENTAL ASSESSMENT:

This is a project as defined under CEQA but is Categorically Exempt (Section 15301). A notice of exemption will not be filed.

Attachments:

1. Construction Agreement

2. Bid Summary

ITEM NO. 4.

CONSTRUCTION CONTRACT

Construction Contract
Saviano Co., Inc.

La Rinconada Sports Court Resurfacing
This public works contract (“Contract”) is by and between Town of Los Gatos (“Town”) and Saviano Co., Inc. (“Contractor”), for work on the La Rinconada Sports Court Resurfacing Project #831-4611 (“Project”).

The parties agree as follows:

1. Award of Contract. In response to the Notice Inviting Bids, Contractor has submitted a Bid Proposal to perform the Work to construct the Project. The Town has authorized award of this Contract to Contractor for the amount set forth in Section 4, below. Town has elected to include the following Project alternate(s) in the Contract: No alternates. .

2. Contract Documents. The Contract Documents incorporated into this Contract include and are comprised of all of the documents listed below. The definitions provided in Article 1 of the General Conditions apply to all of the Contract Documents, including this Contract.

A. Notice Inviting Bids;
B. Instructions to Bidders;
C. Addenda, if any;
D. Bid Proposal and attachments thereto;
E. Contract;
F. Payment and Performance Bonds;
G. General Conditions;
H. Special Conditions;
I. Project Plans and Specifications;
J. Change Orders, if any;
K. Notice of Potential Award;
L. Notice to Proceed; and
M. The following: No other documents.

3. Contractor’s Obligations. Contractor will perform all of the Work required for the Project, as specified in the Contract Documents. Contractor must provide, furnish, and supply all things necessary and incidental for the timely performance and completion of the Work, including all necessary labor, materials, supplies, tools, equipment, transportation, onsite facilities, and utilities, unless otherwise specified in the Contract Documents. Contractor must use its best efforts to diligently prosecute and complete the Work in a professional and expeditious manner and to meet or exceed the performance standards required by the Contract Documents.

4. Payment. As full and complete compensation for Contractor’s timely performance and completion of the Work in strict accordance with the terms and conditions of the Contract Documents, City will pay Contractor $98,001.25 (“Contract Price”) for all of Contractor’s direct and indirect costs to perform the Work, including all labor, materials, supplies, equipment, taxes, insurance, bonds and all overhead costs, in accordance with the payment provisions in the General Conditions.

ATTACHMENT 1

ITEM NO. 4.

Construction Contract
Saviano Co., Inc.

5. Time for Completion. Contractor will fully complete the Work for the Project, meeting all requirements for Final Completion, within 80 calendar days from the start date set forth in the Notice to Proceed (“Contract Time”). By signing below, Contractor expressly waives any claim for delayed early completion.

6. Liquidated Damages. As further specified in Section 5.4 of the General Conditions, if Contractor fails to complete the Work within the Contract Time, Town will assess liquidated damages in the amount of $1,000 per day for each day of unexcused delay in achieving Final Completion, and such liquidated damages may be deducted from City’s payments due or to become due to Contractor under this Contract.

7. Labor Code Compliance.

A. General. This Contract is subject to all applicable requirements of Chapter 1 of Part 7 of Division 2 of the Labor Code, including requirements pertaining to wages, working hours and workers’ compensation insurance, as further specified in Article 9 of the General Conditions.

B. Prevailing Wages. This Project is subject to the prevailing wage requirements applicable to the locality in which the Work is to be performed for each craft, classification or type of worker needed to perform the Work, including employer payments for health and welfare, pension, vacation, apprenticeship and similar purposes.

Copies of these prevailing rates are available online at http://www.dir.ca.gov/DLSR.

C. DIR Registration. City may not enter into the Contract with a bidder without proof that the bidder and its Subcontractors are registered with the California Department of Industrial Relations to perform public work pursuant to Labor Code § 1725.5, subject to limited legal exceptions.

8. Workers’ Compensation Certification. Pursuant to Labor Code § 1861, by signing this Contract, Contractor certifies as follows: “I am aware of the provisions of Labor Code § 3700 which require every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the Work on this Contract.”

9. Conflicts of Interest. Contractor, its employees, Subcontractors, and agents may not have, maintain, or acquire a conflict of interest in relation to this Contract in violation of any City ordinance or requirement, or in violation of any California law, including Government Code § 1090 et seq., or the Political Reform Act, as set forth in Government Code § 81000 et seq. and its accompanying regulations. Any violation of this Section constitutes a material breach of the Contract.

10. Independent Contractor. Contractor is an independent contractor under this Contract and will have control of the Work and the means and methods by which it is performed. Contractor and its Subcontractors are not employees of City and are not entitled to participate in any health, retirement, or any other employee benefits from City.

11. Notice. Any notice, billing, or payment required by or pursuant to the Contract Documents must be made in writing, signed, dated, and sent to the other party by personal delivery, U.S. Mail, a reliable overnight delivery service, or by email as a PDF file. Notice is deemed effective upon delivery, except that service by U.S. Mail is deemed effective on the second working day after deposit for delivery. Notice for each party must be given as follows:

Town:

Invoices:

Town of Los Gatos
Attn: Accounts Payable
P.O. Box 655

ITEM NO. 4.

Construction Contract
Saviano Co., Inc.

Los Gatos, CA 95031-0655
Email (preferred): [email protected]
Notices:

Town of Los Gatos
Attn: Town Clerk
110 E. Main Street
Los Gatos, CA 95030
Contractor:

Saviano Co., Inc.
1784 Smith Avenue, San Jose, CA 95112
Attn: John Saviano President [email protected] (650)-948-3274

12. General Provisions.

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

B. Third Party Beneficiaries. There are no intended third party beneficiaries to this Contract.

C. Governing Law and Venue. This Contract will be governed by California law and venue will be in the Santa Clara County Superior Court, and no other place. Contractor waives any right it may have pursuant to Code of Civil Procedure § 394, to file a motion to transfer any action arising from or relating to this Contract to a venue outside of Santa Clara County, California.

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

E. Integration. This Contract and the Contract Documents incorporated herein, including authorized amendments or Change Orders thereto, constitute the final, complete, and exclusive terms of the agreement between City and Contractor.

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

G. Iran Contracting Act. If the Contract Price exceeds $1,000,000, Contractor certifies, by signing below, that it is not identified on a list created under the Iran Contracting Act, Public Contract Code § 2200 et seq. (the “Act”), as a person engaging in investment activities in Iran, as defined in the Act, or is otherwise expressly exempt under the Act.

H. Authorization. Each individual signing below warrants that he or she is authorized to do so by the party that he or she represents, and that this Contract is legally binding on that party. If Contractor is a corporation, signatures from two officers of the corporation are required pursuant to California Corporations Code § 313.

ITEM NO. 4.

Construction Contract
Saviano Co., Inc.
[Signatures are on the following page.]

ITEM NO. 4.

The parties agree to this Contract as witnessed by the signatures below:

TOWN OF LOS GATOS: SAVIANO CO., INC.:
**signature_85607**

SIGNATURE
Chris Constantin

FULL NAME
Town Manager
TITLE
**date_signed_85607**

DATE SIGNED
**signature_85609**

CONTRACTOR SIGNATORY'S SIGNATURE
John Saviano

CONTRACTOR SIGNATORY'S FULL NAME
President

CONTRACTOR SIGNATORY'S TITLE
**date_signed_85609**

DATE SIGNED
Approved as to form:
**signature_85606**

SIGNATURE
Gabrielle Whelan

FULL NAME
Town Attorney
TITLE
**date_signed_85606**

DATE SIGNED
The execution date is the date on which the last party has signed.

ITEM NO. 4.

Town of Los Gatos
Parks and Public Works
Nicolle Burnham, Parks and Public Works Director
110 E. Main St, Los Gatos, CA 95030

EVALUATION TABULATION
La Rinconada Sports Court Resurfacing
RESPONSE DEADLINE: February 25, 2026 at 2:00 pm

SELECTED VENDOR TOTALS
Vendor Total
Saviano Co., Inc. $98,001.25
Silicon Valley Paving, Inc. $112,825.00
Vintage Contractors, Inc. $186,000.00
TABLE 1
Vendor Total
Saviano Co., Inc. $98,001.25
Silicon Valley Paving, Inc. $112,825.00
Vintage Contractors, Inc. $186,000.00
Attachment 2

ITEM NO. 4.

PREPARED BY: Saurabh Nijhawan
Senior Civil Engineer
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Finance Director 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
MEETING DATE: 04/21/2026
ITEM NO: 5
DATE: April 21, 2026
TO: Mayor and Town Council
FROM: Chris Constantin, Town Manager
SUBJECT: Authorize the Town Manager to Execute a Construction Contract with QLM, Inc. in the Amount of $646,336 with Change Order Authority Not to Exceed $64,634 (10% Contingency); Authorize the Town Manager to Execute a Agreement for Professional Services with Ninyo & Moore in the Amount of $18,390; Authorize the Town Manager to Execute a Agreement for Professional Services with Precision Works LLC DBA Precision Concrete Cutting in the Amount of $90,000; Approve the Plans and Specifications (Design Immunity); and Authorize Associated Budget Adjustments RECOMMENDATION: Staff recommends that the Town Council take the following actions in regard to the 2026 Curb, Gutter, and Sidewalk Maintenance Project (4118120; CIP No. 813-9921):
a. Authorize the Town Manager to execute a public works contract with QLM, Inc. in the amount of $646,336, with authority to approve construction change orders in an
amount not to exceed $64,634 (10% contingency);
b. Authorize the Town Manager to execute an Agreement for Professional Services with Ninyo & Moore for Materials
Testing Services for a total agreement in an amount not to exceed $18,390;
c. Authorize the Town Manager to execute an Agreement for Services with Precision Works LLC DBA Precision Concrete Cutting for Sidewalk Cutting Services for a total agreement in an amount not to exceed $90,000;
d. Approve the project construction plans and specifications per Government Code 830.6 (Design Immunity);

ITEM NO. 5.

PAGE 2 OF 4
SUBJECT: Actions Related to 2026 Curb, Gutter, and Sidewalk Maintenance Project (4118120; CIP No. 813-9921)
DATE: April 21, 2026
e. Find the project Categorically Exempt under Section
15301(c) of the California Environmental Quality Act; and f. Authorize An Expenditure Budget Transfer in the Amount of $439,706 from the Annual Street Repair and Resurfacing
Project (4118155, CIP No. 811-9901) to the Annual Curb, Gutter and Sidewalk Maintenance Project (4118120, CIP No. 813-9921).

FISCAL IMPACT:

Total authorized project expenditures under this action equal $819,360, comprised of: QLM, Inc. construction contract ($646,336), 10% construction contingency ($64,634), Ninyo & Moore Agreement for Professional Services ($18,390), and Precision Works LLC DBA Precision Concrete Cutting for Sidewalk Cutting Services Agreement for Services ($90,000). The adopted FY 2025- 26 Budget for the Annual Curb Gutter and Sidewalk CIP Project has an existing balance of $379,654 available from previous appropriations for this action. Staff is recommending an expenditure budget adjustment in the amount of $439,706 from the Annual Street Repair and Resurfacing Project (4118155, CIP No. 811-9901) to the Annual Curb, Gutter and Sidewalk Maintenance Project (4118120, CIP No. 813-9921) to complete the action.

Various funding sources support the Annual Street Repair and Resurfacing Project. This includes restricted GFAR and the Local Streets and Roads Program (SB1), which can be used for concrete rehabilitation and repair. The transfer of funds between the Annual Street Repair and Resurfacing Project and the Annual Curb, Gutter, and Sidewalk Maintenance Project is therefore consistent with the intent of the funding sources.

STRATEGIC PRIORITY:

This item does not directly address a Strategic Priority; however, it aligns with the Core Goal of Quality Public Infrastructure. The proposed work ensures safety for all users and supports compliance with the Americans with Disabilities Act (ADA).

BACKGROUND:

The adopted FY 2025/26-2029/30 Capital Improvement Program (CIP) Budget designates funding for the Curb, Gutter, and Sidewalk Maintenance Project (4118120, CIP No. 813-9921).

This annual project replaces and improves damaged or outdated curbs, gutters, sidewalks, driveways, and curb ramps within the Town’s jurisdiction to address safety and operational issues and to improve accessibility.

The Annual Curb, Gutter, and Sidewalk Maintenance (Concrete) Project work includes replacing or retrofitting curb ramps for compliance with the Americans with Disabilities Act (ADA) and other accessibility requirements. Title II of the ADA obligates jurisdictions to upgrade nonPage 34 ITEM NO. 5.

PAGE 3 OF 4
SUBJECT: Actions Related to 2026 Curb, Gutter, and Sidewalk Maintenance Project (4118120; CIP No. 813-9921)
DATE: April 21, 2026
conforming curb ramps when streets are resurfaced from one intersection to another. The United States Department of Justice has determined that surface treatments such as asphalt overlay, rubber cape seal, and micro-surfacing trigger the requirement for ADA compliant curb ramps on associated streets.

As such, the scope of work proposed for the annual curb, gutter, and sidewalk maintenance project is dictated by the location of the annual paving project, the award of which will be the subject of a future Town Council action.

DISCUSSION:

The Curb, Gutter, and Sidewalk Maintenance Project was advertised for bid on Friday, February 20, 2026. On March 17, 2026, bids were opened with twelve contractors submitting bids. A summary of bid results is presented in Table 1 with QLM, Inc. as the apparent low bidder. A detailed bid summary is included in Attachment 2.

Table 1. Bid Results for the Annual Curb, Gutter, and Sidewalk Maintenance Project (CIP No. 813-9921)
Contractor Base Bid
Engineers Estimate $ 820,000.00
QLM, Inc. $ 646,336.00
Spektren Engineering, Inc. $ 646,465.19
Duran Construction Group $ 705,072.00
Bosco Co. $ 731,112.00
ASG Builders $ 798,927.60
Sposeto Engineering Inc. $ 804,078.50
Zara Construction, Inc. $ 819,850.00
Spencon Construction $ 832,592.00
FBD Vanguard Construction, Inc. $ 873,236.00
JJR Construction, Inc. $ 914,281.00
SAE Consulting Engineering $ 1,063,910.00
Precision Grade Inc. $ 1,225,022.52
Staff reviewed the bids received for responsiveness and responsibility. Based on this review, QLM Inc. was determined to be the lowest responsive and responsible bidder. The proposed construction contract amount of $646,336.00 is below the engineer’s estimate and is consistent with the scope of work identified in the construction documents. The bid submitted by QLM, Inc. is approximately 21% below the Engineer’s Estimate, indicating competitive pricing consistent with current market conditions.

ITEM NO. 5.

PAGE 4 OF 4
SUBJECT: Actions Related to 2026 Curb, Gutter, and Sidewalk Maintenance Project (4118120; CIP No. 813-9921)
DATE: April 21, 2026
Government Code 830.6 states that neither a public entity nor a public employee is liable under this chapter for an injury caused by the plan or design of a construction of, or an improvement to, public property where such plan or design has been approved in advance of the construction or improvement by the legislative body. Staff requests that the Town Council approve the construction plans for this project. Approval of the plans and specifications will provide design immunity pursuant to Government Code Section 830.6. The project construction plans are provided in Attachment 3.

The Town received proposals for materials testing, and staff recommends an agreement with Ninyo & Moore (Attachment 4), which is proposed based on the quality of their proposal and ability to perform the work successfully.

Staff requests approval of a single source contract with PrecisionWorks LLC, DBA Precision Concrete Cutting (Attachment 5) through PLAN JPA, which is a cooperative purchasing authority. This project will be in conjunction with our annual sidewalk project. PCC has performed these services for the Town in the past, and their work was of good quality. PCC is the industry leader and sole contractor that provides horizontal concrete cutting of this type required for this project.

Construction is anticipated to begin in May 2026 and be completed within approximately 56 calendar days.

CONCLUSION:

Staff recommends the Town Council authorize the Town Manager to execute a public works contract with QLM, Inc. for the Curb, Gutter, and Sidewalk Maintenance Project to perform concrete repairs and replacement within the Town.

COORDINATION:

This project was coordinated with the Finance Department.

ENVIRONMENTAL ASSESSMENT:

This is a project defined under CEQA as being Categorically Exempt pursuant to CEQA Guidelines Section 15301(c). A Notice of Exemption has been filed.

Attachments:

1. Construction Agreement

2. Bid Summary

3. Construction Plans & Specifications and Addenda

4. Agreement for Material Testing Services

5. Agreement for Sidewalk Cutting Services

ITEM NO. 5.

CONSTRUCTION CONTRACT

Construction Contract
QLM INC.
2026 Annual Curb, Gutter, and Sidewalk Maintenance
This public works contract (“Contract”) is by and between Town of Los Gatos (“Town”) and QLM INC. (“Contractor”), for work on the 2026 Annual Curb, Gutter, and Sidewalk Maintenance Project #25-813-9921 (“Project”).

The parties agree as follows:

1. Award of Contract. In response to the Notice Inviting Bids, Contractor has submitted a Bid Proposal to perform the Work to construct the Project. The Town has authorized award of this Contract to Contractor for the amount set forth in Section 4, below. Town has elected to include the following Project alternate(s) in the Contract: No alternates.

2. Contract Documents. The Contract Documents incorporated into this Contract include and are comprised of all of the documents listed below. The definitions provided in Article 1 of the General Conditions apply to all of the Contract Documents, including this Contract.

A. Notice Inviting Bids;
B. Instructions to Bidders;
C. Addenda, if any;
D. Bid Proposal and attachments thereto;
E. Contract;
F. Payment and Performance Bonds;
G. General Conditions;
H. Special Conditions;
I. Project Plans and Specifications;
J. Change Orders, if any;
K. Notice of Potential Award;
L. Notice to Proceed; and
M. The following: No other documents

3. Contractor’s Obligations. Contractor will perform all of the Work required for the Project, as specified in the Contract Documents. Contractor must provide, furnish, and supply all things necessary and incidental for the timely performance and completion of the Work, including all necessary labor, materials, supplies, tools, equipment, transportation, onsite facilities, and utilities, unless otherwise specified in the Contract Documents. Contractor must use its best efforts to diligently prosecute and complete the Work in a professional and expeditious manner and to meet or exceed the performance standards required by the Contract Documents.

4. Payment. As full and complete compensation for Contractor’s timely performance and completion of the Work in strict accordance with the terms and conditions of the Contract Documents, Town will pay Contractor $646,336.00 (“Contract Price”) for all of Contractor’s direct and indirect costs to perform the Work, including all labor, materials, supplies, equipment, taxes, insurance, bonds and all overhead costs, in accordance with the payment provisions in the General Conditions.

ATTACHMENT 1

ITEM NO. 5.

Construction Contract
QLM INC.

5. Time for Completion. Contractor will fully complete the Work for the Project, meeting all requirements for Final Completion, within 56 calendar days from the start date set forth in the Notice to Proceed (“Contract Time”). By signing below, Contractor expressly waives any claim for delayed early completion.

6. Liquidated Damages. As further specified in Section 5.4 of the General Conditions, if Contractor fails to complete the Work within the Contract Time, Town will assess liquidated damages in the amount of 3000 per day for each day of unexcused delay in achieving Final Completion, and such liquidated damages may be deducted from Town’s payments due or to become due to Contractor under this Contract.

7. Labor Code Compliance.

A. General. This Contract is subject to all applicable requirements of Chapter 1 of Part 7 of Division 2 of the Labor Code, including requirements pertaining to wages, working hours and workers’ compensation insurance, as further specified in Article 9 of the General Conditions.

B. Prevailing Wages. This Project is subject to the prevailing wage requirements applicable to the locality in which the Work is to be performed for each craft, classification or type of worker needed to perform the Work, including employer payments for health and welfare, pension, vacation, apprenticeship and similar purposes.

Copies of these prevailing rates are available online at http://www.dir.ca.gov/DLSR.

C. DIR Registration. Town may not enter into the Contract with a bidder without proof that the bidder and its Subcontractors are registered with the California Department of Industrial Relations to perform public work pursuant to Labor Code § 1725.5, subject to limited legal exceptions.

8. Workers’ Compensation Certification. Pursuant to Labor Code § 1861, by signing this Contract, Contractor certifies as follows: “I am aware of the provisions of Labor Code § 3700 which require every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the Work on this Contract.”

9. Conflicts of Interest. Contractor, its employees, Subcontractors, and agents may not have, maintain, or acquire a conflict of interest in relation to this Contract in violation of any Town ordinance or requirement, or in violation of any California law, including Government Code § 1090 et seq., or the Political Reform Act, as set forth in Government Code § 81000 et seq. and its accompanying regulations. Any violation of this Section constitutes a material breach of the Contract.

10. Independent Contractor. Contractor is an independent contractor under this Contract and will have control of the Work and the means and methods by which it is performed. Contractor and its Subcontractors are not employees of Town and are not entitled to participate in any health, retirement, or any other employee benefits from Town.

11. Notice. Any notice, billing, or payment required by or pursuant to the Contract Documents must be made in writing, signed, dated, and sent to the other party by personal delivery, U.S. Mail, a reliable overnight delivery service, or by email as a PDF file. Notice is deemed effective upon delivery, except that service by U.S. Mail is deemed effective on the second working day after deposit for delivery. Notice for each party must be given as follows:

Town:

Invoices:

Town of Los Gatos
Attn: Accounts Payable
P.O. Box 655

ITEM NO. 5.

Construction Contract
QLM INC.

Los Gatos, CA 95031-0655
Email (preferred): [email protected]
Notices:

Town of Los Gatos
Attn: Town Clerk
110 E. Main Street
Los Gatos, CA 95030
Contractor:

QLM INC.
94 Umbarger Road, San Jose, CA 95111
Attn: Darrell Qualls President [email protected] (408)-265-0904

12. General Provisions.

A. Assignment and Successors. Contractor may not assign its rights or obligations under this Contract, in part or in whole, without Town’s written consent. This Contract is binding on Contractor’s and Town’s lawful heirs, successors and permitted assigns.

B. Third Party Beneficiaries. There are no intended third party beneficiaries to this Contract.

C. Governing Law and Venue. This Contract will be governed by California law and venue will be in the Santa Clara County Superior Court, and no other place. Contractor waives any right it may have pursuant to Code of Civil Procedure § 394, to file a motion to transfer any action arising from or relating to this Contract to a venue outside of Santa Clara County, California.

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

E. Integration. This Contract and the Contract Documents incorporated herein, including authorized amendments or Change Orders thereto, constitute the final, complete, and exclusive terms of the agreement between Town and Contractor.

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

G. Iran Contracting Act. If the Contract Price exceeds $1,000,000, Contractor certifies, by signing below, that it is not identified on a list created under the Iran Contracting Act, Public Contract Code § 2200 et seq. (the “Act”), as a person engaging in investment activities in Iran, as defined in the Act, or is otherwise expressly exempt under the Act.

H. Authorization. Each individual signing below warrants that he or she is authorized to do so by the party that he or she represents, and that this Contract is legally binding on that party. If Contractor is a corporation, signatures from two officers of the corporation are required pursuant to California Corporations Code § 313.

ITEM NO. 5.

Construction Contract
QLM INC.

I. Mediation. Should any dispute arise out of this Agreement, any party may request that it be submitted to mediation.

The parties shall meet in mediation within 30 days of a request. The mediator shall be agreed to by the mediating parties. In the absence of an agreement, the parties shall each submit one name from mediators listed by either the American Arbitration Association, the California State Board of Mediation and Conciliation, or other agreed-upon service. The mediator shall be selected by a blind draw. The cost of mediation shall be borne equally by the parties.

Neither party shall be deemed the prevailing party. No party shall be permitted to file a legal action without first meeting in mediation and making a good faith attempt to reach a mediated settlement. The mediation process, once commenced by a meeting with the mediator, shall last until agreement is reached by the parties but not more than 60 days, unless the maximum time is extended by the parties.

[Signatures are on the following page.]

ITEM NO. 5.

The parties agree to this Contract as witnessed by the signatures below:

TOWN OF LOS GATOS: QLM INC.:
**signature_94178**

SIGNATURE
Chris Constantin

FULL NAME
Town Manager
TITLE
**date_signed_94178**

DATE SIGNED
**signature_94183**

CONTRACTOR SIGNATORY'S SIGNATURE
Darrell Qualls

CONTRACTOR SIGNATORY'S FULL NAME
President

CONTRACTOR SIGNATORY'S TITLE
**date_signed_94183**

DATE SIGNED
Approved as to form: **signature_106895**

CONTRACTOR SIGNATORY'S SIGNATURE
Hector Deanda

CONTRACTOR SIGNATORY'S FULL NAME
Secretary

CONTRACTOR SIGNATORY'S TITLE
**date_signed_106895**

DATE SIGNED
**signature_94180**

SIGNATURE
Gabrielle Whelan

FULL NAME
Town Attorney
TITLE
**date_signed_94180**

DATE SIGNED
The execution date is the date on which the last party has signed.

ITEM NO. 5.
#25-813-9921 2026 Annual Curb, Gutter, and Sidewalk Maintenance Bid Opening: Tuesday, March 17, 2026 at 2 pm
Item Description Quantity Unit Unit Cost Total Unit Cost Total Unit Cost Total Unit Cost Total 1 Traffic Control 1 L.S. $40,000.00 $40,000.00 $8,868.02 $8,868.02 $10,000.00 $10,000.00 $30,000.00 $30,000.00 2 Adjust Frame and Grate to Grade 1 Ea. $300.00 $300.00 $973.79 $973.79 $500.00 $500.00 $1,500.00 $1,500.00 3 Adjust Utility Box to Grade 8 Ea. $300.00 $2,400.00 $279.30 $2,234.40 $375.00 $3,000.00 $750.00 $6,000.00 4 Adjust Water Meter Box to Grade 1 Ea. $300.00 $300.00 $307.15 $307.15 $175.00 $175.00 $750.00 $750.00 5 Remove and Reinstall Bicycle Rack 1 Ea. $500.00 $500.00 $978.98 $978.98 $600.00 $600.00 $750.00 $750.00 6 Clearing and Grubbing 1 L.S. $5,000.00 $5,000.00 $4,284.25 $4,284.25 $3,500.00 $3,500.00 $8,500.00 $8,500.00 7 Remove and Replace Curb and Gutter 1595 L.F. $108.00 $172,260.00 $70.00 $111,650.00 $83.00 $132,385.00 $78.00 $124,410.00 8 Remove and Replace Sidewalk 8717 S.F. $22.00 $191,774.00 $18.33 $159,782.61 $20.00 $174,340.00 $19.00 $165,623.00 9 Remove and Replace Sidewalk (Villa 120 S.F. $22.00 $2,640.00 $40.92 $4,910.40 $39.00 $4,680.00 $19.00 $2,280.00 10 Remove Hardscape and Replace with Topsoil 130 S.F. $8.00 $1,040.00 $5.73 $744.90 $8.50 $1,105.00 $15.00 $1,950.00 11 Remove and Replace Residential Driveway
(Revocable) 100 S.F. $25.00 $2,500.00 $40.33 $4,033.00 $32.00 $3,200.00 $19.00 $1,900.00 12 Remove and Replace Commercial Driveway 775 S.F. $26.00 $20,150.00 $30.74 $23,823.50 $35.00 $27,125.00 $21.00 $16,275.00 13 Install Detectable Warning Surface 1 Ea. $1,000.00 $1,000.00 $776.16 $776.16 $750.00 $750.00 $1,500.00 $1,500.00 14 Install New Curb and Gutter 80 L.F. $108.00 $8,640.00 $83.20 $6,656.00 $95.00 $7,600.00 $78.00 $6,240.00 15 Install New Sidewalk 66 S.F. $22.00 $1,452.00 $37.27 $2,459.82 $32.00 $2,112.00 $19.00 $1,254.00 16 Install Curb Ramp-Case B 12 Ea. $3,500.00 $42,000.00 $5,675.77 $68,109.24 $6,200.00 $74,400.00 $6,500.00 $78,000.00 17 Install Curb Ramp-Case B (Villa Hermosa) 3 Ea. $3,500.00 $10,500.00 $7,067.57 $21,202.71 $7,200.00 $21,600.00 $6,500.00 $19,500.00 18 Install Curb Ramp-Case C 6 Ea. $3,500.00 $21,000.00 $5,868.88 $35,213.28 $6,000.00 $36,000.00 $6,500.00 $39,000.00 19 Install Curb Ramp-Case C (Villa Hermosa) 2 Ea. $3,500.00 $7,000.00 $6,438.03 $12,876.06 $6,800.00 $13,600.00 $6,500.00 $13,000.00 20 Install Curb Ramp-Case F 13 Ea. $3,500.00 $45,500.00 $5,223.44 $67,904.72 $5,500.00 $71,500.00 $6,500.00 $84,500.00 21 Install Curb Ramp-Case G 11 Ea. $3,500.00 $38,500.00 $5,344.77 $58,792.47 $5,500.00 $60,500.00 $6,500.00 $71,500.00 22 Install New Curb Ramp-Type A Passageway 2 Ea. $3,500.00 $7,000.00 $6,705.11 $13,410.22 $5,000.00 $10,000.00 $6,500.00 $13,000.00 23 Install New Curb Ramp-Type C Passageway 1 Ea. $3,500.00 $3,500.00 $8,177.27 $8,177.27 $6,500.00 $6,500.00 $6,500.00 $6,500.00 24 Remove Curb Ramp 2 Ea. $800.00 $1,600.00 $1,145.13 $2,290.26 $4,500.00 $9,000.00 $1,500.00 $3,000.00 25 Paint Red Curb (Revocable) 100 L.F. $12.00 $1,200.00 $13.49 $1,349.00 $20.00 $2,000.00 $35.00 $3,500.00 26 Root Prune and Install Root Barrier 100 L.F. $25.00 $2,500.00 $8.77 $877.00 $65.00 $6,500.00 $65.00 $6,500.00 27 Remove Sign and Post 1 Ea. $500.00 $500.00 $229.00 $229.00 $200.00 $200.00 $500.00 $500.00 28 Remove and Reinstall Sign and Post 2 Ea. $600.00 $1,200.00 $229.00 $458.00 $800.00 $1,600.00 $1,500.00 $3,000.00 29 Remove and Reinstall Sign on New Post 1 Ea. $700.00 $700.00 $395.03 $395.03 $800.00 $800.00 $1,500.00 $1,500.00 30 Install New Sign on New Post 1 Ea. $800.00 $800.00 $629.75 $629.75 $800.00 $800.00 $1,500.00 $1,500.00 A1.1 Install Caltrans Type A1-8 Curb 60 L.F. $98.00 $5,880.00 $86.63 $5,197.80 $110.00 $6,600.00 $78.00 $4,680.00 A1.2 Install Curb Ramp-Case A 2 Ea. $3,500.00 $7,000.00 $8,435.20 $16,870.40 $6,200.00 $12,400.00 $6,500.00 $13,000.00 Total $646,336.00 $646,465.19 $705,072.00 $731,112.00
Schedule of Quantities QLM INC. Spektren Engineering, Inc. Duran Construction Group Bosco Co

ATTACHMENT 2

ITEM NO. 5.
#25-813-9921 2026 Annual Curb, Gutter, and Sidewalk Maintenance Bid Opening: Tuesday, March 17, 2026 at 2 pm
Item Description Quantity Unit
1 Traffic Control 1 L.S.
2 Adjust Frame and Grate to Grade 1 Ea.
3 Adjust Utility Box to Grade 8 Ea.
4 Adjust Water Meter Box to Grade 1 Ea.
5 Remove and Reinstall Bicycle Rack 1 Ea.
6 Clearing and Grubbing 1 L.S.
7 Remove and Replace Curb and Gutter 1595 L.F.
8 Remove and Replace Sidewalk 8717 S.F.
9 Remove and Replace Sidewalk (Villa 120 S.F.
10 Remove Hardscape and Replace with Topsoil 130 S.F.
11 Remove and Replace Residential Driveway
(Revocable) 100 S.F.
12 Remove and Replace Commercial Driveway 775 S.F.
13 Install Detectable Warning Surface 1 Ea.
14 Install New Curb and Gutter 80 L.F.
15 Install New Sidewalk 66 S.F.
16 Install Curb Ramp-Case B 12 Ea.
17 Install Curb Ramp-Case B (Villa Hermosa) 3 Ea.
18 Install Curb Ramp-Case C 6 Ea.
19 Install Curb Ramp-Case C (Villa Hermosa) 2 Ea.
20 Install Curb Ramp-Case F 13 Ea.
21 Install Curb Ramp-Case G 11 Ea.
22 Install New Curb Ramp-Type A Passageway 2 Ea.
23 Install New Curb Ramp-Type C Passageway 1 Ea.
24 Remove Curb Ramp 2 Ea.
25 Paint Red Curb (Revocable) 100 L.F.
26 Root Prune and Install Root Barrier 100 L.F.
27 Remove Sign and Post 1 Ea.
28 Remove and Reinstall Sign and Post 2 Ea.
29 Remove and Reinstall Sign on New Post 1 Ea.
30 Install New Sign on New Post 1 Ea.

A1.1 Install Caltrans Type A1-8 Curb 60 L.F.

A1.2 Install Curb Ramp-Case A 2 Ea.

Total
Schedule of Quantities
Unit Cost Total Unit Cost Total Unit Cost Total Unit Cost Total $23,400.00 $23,400.00 $23,000.00 $23,000.00 $40,000.00 $40,000.00 $10,000.00 $10,000.00 $2,592.00 $2,592.00 $1,200.00 $1,200.00 $3,000.00 $3,000.00 $400.00 $400.00 $936.00 $7,488.00 $200.00 $1,600.00 $2,500.00 $20,000.00 $400.00 $3,200.00 $1,224.00 $1,224.00 $200.00 $200.00 $2,500.00 $2,500.00 $400.00 $400.00 $1,296.00 $1,296.00 $350.00 $350.00 $2,000.00 $2,000.00 $750.00 $750.00 $6,480.00 $6,480.00 $20,000.00 $20,000.00 $15,000.00 $15,000.00 $5,000.00 $5,000.00 $74.88 $119,433.60 $135.00 $215,325.00 $70.00 $111,650.00 $125.00 $199,375.00 $22.00 $191,774.00 $19.50 $169,981.50 $20.00 $174,340.00 $24.00 $209,208.00 $24.00 $2,880.00 $50.00 $6,000.00 $35.00 $4,200.00 $35.00 $4,200.00 $18.00 $2,340.00 $10.00 $1,300.00 $60.00 $7,800.00 $5.00 $650.00 $28.00 $2,800.00 $24.00 $2,400.00 $80.00 $8,000.00 $30.00 $3,000.00 $28.00 $21,700.00 $29.00 $22,475.00 $42.00 $32,550.00 $35.00 $27,125.00 $35.00 $35.00 $1,600.00 $1,600.00 $1,500.00 $1,500.00 $1,500.00 $1,500.00 $65.00 $5,200.00 $92.00 $7,360.00 $90.00 $7,200.00 $125.00 $10,000.00 $21.00 $1,386.00 $19.50 $1,287.00 $35.00 $2,310.00 $24.00 $1,584.00 $7,200.00 $86,400.00 $7,500.00 $90,000.00 $7,000.00 $84,000.00 $6,300.00 $75,600.00 $7,450.00 $22,350.00 $8,000.00 $24,000.00 $7,000.00 $21,000.00 $8,000.00 $24,000.00 $7,560.00 $45,360.00 $7,500.00 $45,000.00 $7,000.00 $42,000.00 $6,300.00 $37,800.00 $7,900.00 $15,800.00 $8,000.00 $16,000.00 $7,000.00 $14,000.00 $8,000.00 $16,000.00 $7,750.00 $100,750.00 $3,800.00 $49,400.00 $7,000.00 $91,000.00 $6,300.00 $81,900.00 $7,650.00 $84,150.00 $5,500.00 $60,500.00 $7,000.00 $77,000.00 $6,300.00 $69,300.00 $6,960.00 $13,920.00 $3,800.00 $7,600.00 $7,000.00 $14,000.00 $8,000.00 $16,000.00 $7,200.00 $7,200.00 $7,500.00 $7,500.00 $7,000.00 $7,000.00 $8,000.00 $8,000.00 $2,250.00 $4,500.00 $2,000.00 $4,000.00 $1,500.00 $3,000.00 $1,500.00 $3,000.00 $11.00 $1,100.00 $10.00 $1,000.00 $23.00 $2,300.00 $10.00 $1,000.00 $47.00 $4,700.00 $75.00 $7,500.00 $90.00 $9,000.00 $35.00 $3,500.00 $505.00 $505.00 $150.00 $150.00 $500.00 $500.00 $500.00 $500.00 $930.00 $1,860.00 $250.00 $500.00 $900.00 $1,800.00 $550.00 $1,100.00 $1,124.00 $1,124.00 $500.00 $500.00 $900.00 $900.00 $650.00 $650.00 $1,260.00 $1,260.00 $650.00 $650.00 $900.00 $900.00 $750.00 $750.00 $62.00 $3,720.00 $95.00 $5,700.00 $90.00 $5,400.00 $75.00 $4,500.00 $7,100.00 $14,200.00 $5,000.00 $10,000.00 $7,000.00 $14,000.00 $6,300.00 $12,600.00 $798,927.60 $804,078.50 $819,850.00 $832,592.00
ASG Builders Sposeto Engineering Inc Zara Construction, Inc. Spencon Construction

ITEM NO. 5.
#25-813-9921 2026 Annual Curb, Gutter, and Sidewalk Maintenance Bid Opening: Tuesday, March 17, 2026 at 2 pm
Item Description Quantity Unit
1 Traffic Control 1 L.S.
2 Adjust Frame and Grate to Grade 1 Ea.
3 Adjust Utility Box to Grade 8 Ea.
4 Adjust Water Meter Box to Grade 1 Ea.
5 Remove and Reinstall Bicycle Rack 1 Ea.
6 Clearing and Grubbing 1 L.S.
7 Remove and Replace Curb and Gutter 1595 L.F.
8 Remove and Replace Sidewalk 8717 S.F.
9 Remove and Replace Sidewalk (Villa 120 S.F.
10 Remove Hardscape and Replace with Topsoil 130 S.F.
11 Remove and Replace Residential Driveway
(Revocable) 100 S.F.
12 Remove and Replace Commercial Driveway 775 S.F.
13 Install Detectable Warning Surface 1 Ea.
14 Install New Curb and Gutter 80 L.F.
15 Install New Sidewalk 66 S.F.
16 Install Curb Ramp-Case B 12 Ea.
17 Install Curb Ramp-Case B (Villa Hermosa) 3 Ea.
18 Install Curb Ramp-Case C 6 Ea.
19 Install Curb Ramp-Case C (Villa Hermosa) 2 Ea.
20 Install Curb Ramp-Case F 13 Ea.
21 Install Curb Ramp-Case G 11 Ea.
22 Install New Curb Ramp-Type A Passageway 2 Ea.
23 Install New Curb Ramp-Type C Passageway 1 Ea.
24 Remove Curb Ramp 2 Ea.
25 Paint Red Curb (Revocable) 100 L.F.
26 Root Prune and Install Root Barrier 100 L.F.
27 Remove Sign and Post 1 Ea.
28 Remove and Reinstall Sign and Post 2 Ea.
29 Remove and Reinstall Sign on New Post 1 Ea.
30 Install New Sign on New Post 1 Ea.

A1.1 Install Caltrans Type A1-8 Curb 60 L.F.

A1.2 Install Curb Ramp-Case A 2 Ea.

Total
Schedule of Quantities
Unit Cost Total Unit Cost Total Unit Cost Total Unit Cost Total $31,974.00 $31,974.00 $5,000.00 $5,000.00 $65,000.00 $65,000.00 $100,000.00 $100,000.00 $270.00 $270.00 $2,500.00 $2,500.00 $1,200.00 $1,200.00 $434.00 $434.00 $270.00 $2,160.00 $400.00 $3,200.00 $750.00 $6,000.00 $400.00 $3,200.00 $300.00 $300.00 $300.00 $300.00 $750.00 $750.00 $600.00 $600.00 $290.00 $290.00 $1,500.00 $1,500.00 $1,000.00 $1,000.00 $550.00 $550.00 $12,500.00 $12,500.00 $500.00 $500.00 $12,000.00 $12,000.00 $12,000.00 $12,000.00 $85.00 $135,575.00 $132.00 $210,540.00 $77.00 $122,815.00 $148.00 $236,060.00 $24.00 $209,208.00 $22.00 $191,774.00 $35.00 $305,095.00 $33.00 $287,661.00 $60.00 $7,200.00 $37.00 $4,440.00 $50.00 $6,000.00 $47.00 $5,640.00 $15.00 $1,950.00 $8.00 $1,040.00 $15.00 $1,950.00 $20.00 $2,600.00 $30.00 $3,000.00 $33.00 $3,300.00 $25.00 $2,500.00 $69.00 $6,900.00 $35.00 $27,125.00 $35.00 $27,125.00 $28.00 $21,700.00 $54.00 $41,850.00 $580.00 $580.00 $1,000.00 $1,000.00 $900.00 $900.00 $796.00 $796.00 $85.00 $6,800.00 $132.00 $10,560.00 $110.00 $8,800.00 $113.00 $9,040.00 $24.00 $1,584.00 $22.00 $1,452.00 $75.00 $4,950.00 $60.00 $3,960.00 $8,200.00 $98,400.00 $8,250.00 $99,000.00 $10,000.00 $120,000.00 $11,500.00 $138,000.00 $11,000.00 $33,000.00 $10,650.00 $31,950.00 $10,000.00 $30,000.00 $12,000.00 $36,000.00 $8,200.00 $49,200.00 $8,000.00 $48,000.00 $10,000.00 $60,000.00 $10,200.00 $61,200.00 $11,000.00 $22,000.00 $9,075.00 $18,150.00 $9,500.00 $19,000.00 $9,200.00 $18,400.00 $7,500.00 $97,500.00 $8,000.00 $104,000.00 $9,500.00 $123,500.00 $7,800.00 $101,400.00 $7,500.00 $82,500.00 $8,000.00 $88,000.00 $7,500.00 $82,500.00 $8,100.00 $89,100.00 $5,000.00 $10,000.00 $8,000.00 $16,000.00 $8,000.00 $16,000.00 $8,850.00 $17,700.00 $5,000.00 $5,000.00 $12,000.00 $12,000.00 $10,000.00 $10,000.00 $7,500.00 $7,500.00 $5,000.00 $10,000.00 $1,500.00 $3,000.00 $1,500.00 $3,000.00 $1,200.00 $2,400.00 $6.00 $600.00 $10.00 $1,000.00 $25.00 $2,500.00 $13.00 $1,300.00 $28.00 $2,800.00 $35.00 $3,500.00 $75.00 $7,500.00 $75.00 $7,500.00 $240.00 $240.00 $250.00 $250.00 $400.00 $400.00 $300.00 $300.00 $660.00 $1,320.00 $400.00 $800.00 $600.00 $1,200.00 $600.00 $1,200.00 $400.00 $400.00 $600.00 $600.00 $750.00 $750.00 $670.00 $670.00 $660.00 $660.00 $1,000.00 $1,000.00 $900.00 $900.00 $950.00 $950.00 $85.00 $5,100.00 $105.00 $6,300.00 $150.00 $9,000.00 $112.48 $6,748.80 $7,000.00 $14,000.00 $8,250.00 $16,500.00 $8,500.00 $17,000.00 $11,681.36 $23,362.72 $873,236.00 $914,281.00 $1,063,910.00 $1,225,022.52
FBD Vanguard Construction, Inc. JJR Construction, Inc SAE Consulting Engineering Precision Grade Inc

ITEM NO. 5.

PROJECT

PLANS AND SPECIFICATIONS
FOR
2026 ANNUAL CURB, GUTTER, AND SIDEWALK

MAINTENANCE
25-813-9921
Bid Opening
Tuesday, March 17, 2026, 2:00 pm
ISSUE DATE: February 20, 2026
ATTACHMENT 3 Page 45
ITEM NO. 5.
undefined #25-813-9921
Title: 2026 Annual Curb, Gutter, and Sidewalk Maintenance 2 2026 ANNUAL CURB, GUTTER, AND SIDEWALK MAINTENANCE
# 25-813-9921

TABLE OF CONTENTS

1. NOTICE INVITING BIDS

2. Instructions to Bidders

3. Bid Schedule

4. Vendor Questionnaire

5. General Conditions

6. Special Conditions

7. General Constructions Requirements

8. Technical Specifications
Attachments:

A - 2026 Concrete - Locations of Work
B - Standard Plans
C - Sample Contract
D - Blueprint for a Clean Bay
E - Stormwater Ordinance

ITEM NO. 5.
undefined #25-813-9921
Title: 2026 Annual Curb, Gutter, and Sidewalk Maintenance 3 1. NOTICE INVITING BIDS

1.1. Bid Submission
The Town of Los Gatos (“Town”) will accept electronic bids for its Project # 2026 Annual Curb, Gutter, and Sidewalk Maintenance Project #25-813-9921 (“Project”), by or before Tuesday, March 17, 2026, at 2:00 pm, via the Town’s bidding site at https://procurement.opengov.com/portal/losgatosca, at which time the bids will be opened electronically, as further specified in the Instructions to Bidders.

1.2. Project Information
A. Location and Description - The Project involves the repair or replacement of concrete curb and gutter, sidewalks, and driveway approaches, installation of new curb ramps, sign posts, root pruning, and associated work within the Town, as shown in Appendix A, Locations of Work, incorporated herein.

B. Time for Final Completion - The Project must be fully completed within 56 calendar days from the start date set forth in the Notice to Proceed.

C. Estimated Cost. The estimated construction cost is 820000.

1.3. License and Registration Requirements
A. License - This Project requires a valid California contractor’s license for the following classification(s): A or C-8.

B. DIR Registration - Town may not accept a Bid Proposal from or enter into the Contract with a bidder, without proof that the bidder is registered with the California Department of Industrial Relations (“DIR”) to perform public work pursuant to Labor Code § 1725.5, subject to limited legal exceptions.

1.4. Contract Documents
The plans, specifications, bid forms and contract documents for the Project, and any addenda thereto (“Contract Documents”) may be downloaded from Town’s bidding site https://procurement.opengov.com/portal/losgatosca.

Printed copy of the Contract Documents is not available from the Town.

1.5. Bid Security
The Bid Proposal must be accompanied by bid security of ten percent of the maximum bid amount, in the form of a cashier’s or certified check made payable to Town, or a bid bond executed by a surety licensed to do business in the State of California on the Bid Bond form included with the Contract Documents. The bid security must guarantee that within ten days after Town issues the Notice of Potential Award, the successful bidder will execute the Contract and submit the payment and performance bonds, insurance certificates and endorsements, valid Certificates of Reported Compliance as required under the California Air Resources Board’s In-Use Off-Road Diesel-Fueled Fleets Regulation (13 CCR § 2449 et seq.) (“Off-Road Regulation”), if applicable, and any other submittals required by the Contract Documents and as specified in the Notice of Potential Award.

1.6. Prevailing Wage Requirements
A. General - Pursuant to California Labor Code § 1720 et seq., this Project is subject to the prevailing wage requirements applicable to the locality in which the Work is to be performed for each craft, classification or type of worker needed to perform the Work, including employer payments for health and welfare, pension, vacation, apprenticeship and similar purposes.

ITEM NO. 5.
undefined #25-813-9921
Title: 2026 Annual Curb, Gutter, and Sidewalk Maintenance 4 B. Rates - The prevailing rates are on file with the Town and are available online at http://www.dir.ca.gov/DLSR.

Each Contractor and Subcontractor must pay no less than the specified rates to all workers employed to work on the Project. The schedule of per diem wages is based upon a working day of eight hours. The rate for holiday and overtime work must be at least time and one-half.

C. Compliance - The Contract will be subject to compliance monitoring and enforcement by the DIR, under Labor Code § 1771.4.

1.7. Retention
The percentage of retention that will be withheld from progress payments is 5 %.

1.8. Performance and Payment Bonds
The successful bidder will be required to provide performance and payment bonds, each for 100% of the Contract Price, as further specified in the Contract Documents.

1.9. Substitution of Securities
Substitution of appropriate securities in lieu of retention amounts from progress payments is permitted under Public Contract Code § 22300

1.10. Subcontractor List
Each Subcontractor must be registered with the DIR to perform work on public projects. Each bidder must submit a completed Subcontractor List form with its Bid Proposal, including the name, location of the place of business, California contractor license number, DIR registration number, and percentage of the Work to be performed (based on the base bid price) for each Subcontractor that will perform Work or service or fabricate or install Work for the prime contractor in excess of one-half of 1% of the bid price, using the Subcontractor List form included with the Contract Documents.

1.11. Instructions to Bidders
All bidders should carefully review the Instructions to Bidders for more detailed information before submitting a Bid Proposal. The definitions provided in Article 1 of the General Conditions apply to all of the Contract Documents, as defined therein, including this Notice Inviting Bids.

By: /s/ Wendy Wood, Town Clerk
Publication Date: Friday, February 20, 2026

ITEM NO. 5.
undefined #25-813-9921
Title: 2026 Annual Curb, Gutter, and Sidewalk Maintenance 5 2. Instructions to Bidders
Each Bid Proposal submitted to Town of Los Gatos (“Town”) for its 2026 Annual Curb, Gutter, and Sidewalk Maintenance Project #25-813-9921 (“Project”) must be submitted in accordance with the following instructions and requirements:

2.1. Bid Submission
A. General - Each bidder must register for an account on the Town’s bidding site, https://procurement.opengov.com/portal/losgatosca to submit the Bid Proposal electronically. Plans, Specifications, and Addendums (if any) may be viewed and downloaded free of charge via the internet at https://procurement.opengov.com/portal/losgatosca. To be included on the Plan Holder’s List for the Project, registered users must download the Plans and Specifications from the bidding website. Each Bid Proposal must be completed and submitted electronically through the bidding site, with all required forms and attachments, by or before the date and time set forth in Section 1 of the Notice Inviting Bids, or as amended by subsequent addendum. Faxed or emailed Bid Proposals will not be accepted. Late submissions will not be considered. Town reserves the right to postpone the date or time for receiving or opening bids. Each bidder is solely responsible for all of its costs to prepare and submit its bid and by submitting a bid waives any right to recover those costs from Town. The bid price(s) must include all costs to perform the Work as specified, including all labor, material, supplies, and equipment and all other direct or indirect costs such as applicable taxes, insurance and overhead.

B. Bid Opening - Bids timely submitted via the Town’s bidding portal will be opened and publicly read aloud during a Zoom meeting after bids have closed on the day and time listed above. Here is the Zoom link to participate:
https://losgatosca-gov.zoom.us/j/83653039622 or https://www.zoom.com/, Webinar ID: 836 5303 9622 A. DIR Registration - Subject to limited legal exceptions for joint venture bids and federally-funded projects, Town may not accept a Bid Proposal from a bidder without proof that the bidder is registered with the DIR to perform public work under Labor Code § 1725.5. If Town is unable to confirm that the bidder is currently registered with the DIR, Town may disqualify the bidder and disregard its bid. (Labor Code §§ 1725.5 and 1771.1(a).)

2.2. Bid Proposal
A Bid Proposal submitted with exceptions or terms such as “negotiable,” “will negotiate,” or similar, will be considered nonresponsive. Each Bid Proposal must be accompanied by bid security, as set forth in Section titled "Bid Security" below, and by a completed Subcontractor List and Non-Collusion Declaration using the forms included with the Contract Documents, and any other required enclosures, as applicable.

2.3. Bid Security
Each Bid Proposal must be accompanied by bid security of ten percent of the maximum bid amount, in the form of a cashier’s check or certified check, made payable to the Town, or bid bond using the form included in the Contract Documents and executed by a surety licensed to do business in the State of California. The bid security must guarantee that, within ten days after issuance of the Notice of Potential Award, the bidder will: execute and submit the enclosed Contract for the bid price; submit payment and performance bonds for 100% of the maximum Contract Price; submit the insurance certificates and endorsements; and submit valid Certificates of Reported Compliance as required by the OffRoad Regulation, if applicable, and any other submittals, if any, required by the Contract Documents or the Notice of

ITEM NO. 5.
undefined #25-813-9921
Title: 2026 Annual Curb, Gutter, and Sidewalk Maintenance 6 Potential Award. A Bid Proposal may not be withdrawn for a period of 60 days after the bid opening without forfeiture of the bid security, except as authorized for material error under Public Contract Code § 5100 et seq.

2.4. Liquidated Damages
As further specified in Section 5.4 of the General Conditions, if Contractor fails to complete the Work within the Contract Time, Town will assess liquidated damages in the amount of 3000 per day for each day of unexcused delay in achieving Final Completion, and such liquidated damages may be deducted from Town’s payments due or to become due to Contractor under this Contract.

2.5. Requests for Information
Questions or requests for clarifications regarding the Project, the bid procedures, or any of the Contract Documents must be submitted through the Town’s bidding site https://procurement.opengov.com/portal/losgatosca and received a minimum of five (5) working days prior to the scheduled bid opening. Oral responses are not authorized and are not binding on the Town. Bidders should submit any such written inquiries at least five Working Days before the scheduled bid opening. Questions received any later might not be addressed before the bid deadline. An interpretation or clarification by Town in response to Questions or requests for clarifications will be issued through an addendum no later than 72 hours prior to bid opening.

2.6. Pre-Bid Investigation
A. General - Each bidder is solely responsible at its sole expense for diligent and thorough review of the Contract Documents, examination of the Project site, and reasonable and prudent inquiry concerning known and potential site and area conditions prior to submitting a Bid Proposal. Each bidder is responsible for knowledge of conditions and requirements which reasonable review and investigation would have disclosed. However, except for any areas that are open to the public at large, bidders may not enter property owned or leased by the Town or the Project site without prior written authorization from Town.

B. Document Review - Each bidder is responsible for review of the Contract Documents and any informational documents provided “For Reference Only,” e.g., as-builts, technical reports, test data, and the like. A bidder is responsible for notifying Town of any errors, omissions, inconsistencies, or conflicts it discovers in the Contract Documents, acting solely in its capacity as a contractor and subject to the limitations of Public Contract Code § 1104. Notification of any such errors, omissions, inconsistencies, or conflicts must be submitted in writing to the Town no later than five Working Days before the scheduled bid opening. (See Section 5, above.) Town expressly disclaims responsibility for assumptions a bidder might draw from the presence or absence of information provided by Town.

C. Project Site - Questions regarding the availability of soil test data, water table elevations, and the like should be submitted to the Town through the bidding site, as specified in Section 5, above. Any subsurface exploration at the Project site must be done at the bidder’s expense, but only with prior written authorization from Town. All soil data and analyses available for inspection or provided in the Contract Documents apply only to the test hole locations. Any water table elevation indicated by a soil test report existed on the date the test hole was drilled.

The bidder is responsible for determining and allowing for any differing soil or water table conditions during construction. Because groundwater levels may fluctuate, difference(s) in elevation between ground water shown in soil boring logs and ground water actually encountered during construction will not be considered changed Project site conditions. Actual locations and depths must be determined by bidder’s field investigation.

ITEM NO. 5.
undefined #25-813-9921
Title: 2026 Annual Curb, Gutter, and Sidewalk Maintenance 7 The bidder may request access to underlying or background information on the Project site in Town’s possession that is necessary for the bidder to form its own conclusions, including, if available, record drawings or other documents indicating the location of subsurface lines, utilities, or other structures.

D. Utility Company Standards - The Project must be completed in a manner that satisfies the standards and requirements of any affected utility companies or agencies (collectively, “utility owners”). The successful bidder may be required by the third party utility owners to provide detailed plans prepared by a California registered civil engineer showing the necessary temporary support of the utilities during coordinated construction work.

Bidders are directed to contact the affected third party utility owners about their requirements before submitting a Bid Proposal.

2.7. Bidders Interested in More Than One Bid
No person, firm, or corporation may submit or be a party to more than one Bid Proposal unless alternate bids are specifically called for. However, a person, firm, or corporation that has submitted a subcontract proposal or quote to a bidder may submit subcontract proposals or quotes to other bidders.

2.8. Addenda
Any addenda issued prior to the bid opening are part of the Contract Documents. Subject to the limitations of Public Contract Code § 4104.5, Town reserves the right to issue addenda prior to bid time. Each bidder is solely responsible for ensuring it has received and reviewed all addenda prior to submitting its bid. Bidders should check Town’s site periodically for any addenda or updates on the Project at https://procurement.opengov.com/portal/losgatosca.

2.9. Brand Designations and “Or Equal” Substitutions
Any specification designating a material, product, thing, or service by specific brand or trade name, followed by the words “or equal,” is intended only to indicate quality and type of item desired, and bidders may request use of any equal material, product, thing, or service. All data substantiating the proposed substitute as an equal item must be submitted with the written request for substitution. A request for substitution must be submitted within 35 days after Notice of Potential Award unless otherwise provided in the Contract Documents. This provision does not apply to materials, products, things, or services that may lawfully be designated by a specific brand or trade name under Public Contract Code § 3400(c).

2.10. Bid Protest
Any bid protest against another bidder must be submitted in writing and received by Town sent via email to Gary Heap, Town Engineer, at [email protected] before 5:00 p.m. no later than two Working Days following bid opening (“Bid Protest Deadline”) and must comply with the following requirements:

A. General - Only a bidder who has actually submitted a Bid Proposal is eligible to submit a bid protest against another bidder. Subcontractors are not eligible to submit bid protests. A bidder may not rely on the bid protest submitted by another bidder, but must timely pursue its own protest. For purposes of this Section 10, a “Working Day” means a day that Town is open for normal business, and excludes weekends and holidays observed by Town. Pursuant to Public Contract Code § 4104, inadvertent omission of a Subcontractor’s DIR registration number on the Subcontractor List form is not grounds for a bid protest, provided it is corrected within 24 hours of the bid opening or as otherwise provided under Labor Code § 1771.1(b).

ITEM NO. 5.
undefined #25-813-9921
Title: 2026 Annual Curb, Gutter, and Sidewalk Maintenance 8 B. Protest Contents - The bid protest must contain a complete statement of the basis for the protest and must include all supporting documentation. Material submitted after the Bid Protest Deadline will not be considered.

The protest must refer to the specific portion or portions of the Contract Documents upon which the protest is based. The protest must include the name, address, email address, and telephone number of the protesting bidder and any person submitting the protest on behalf of or as an authorized representative of the protesting bidder.

C. Copy to Protested Bidder - Upon submission of its bid protest to Town, the protesting bidder must also concurrently transmit the protest and all supporting documents to the protested bidder, and to any other bidder who has a reasonable prospect of receiving an award depending upon the outcome of the protest, by email or hand delivery to ensure delivery before the Bid Protest Deadline.

D. Response to Protest - The protested bidder may submit a written response to the protest, provided the response is received by Town before 5:00 p.m., within two Working Days after the Bid Protest Deadline or after actual receipt of the bid protest, whichever is sooner (the “Response Deadline”). The response must attach all supporting documentation. Material submitted after the Response Deadline will not be considered. The response must include the name, address, email address, and telephone number of the person responding on behalf of or representing the protested bidder if different from the protested bidder.

E. Copy to Protesting Bidder - Upon submission of its response to the bid protest to the Town, the protested bidder must also concurrently transmit by email or hand delivery, by or before the Response Deadline, a copy of its response and all supporting documents to the protesting bidder and to any other bidder who has a reasonable prospect of receiving an award depending upon the outcome of the protest.

F. Exclusive Remedy - The procedure and time limits set forth in this Section are mandatory and are the bidder’s sole and exclusive remedy in the event of a bid protest. A bidder’s failure to comply with these procedures will constitute a waiver of any right to further pursue a bid protest, including filing a Government Code Claim or initiation of legal proceedings.

G. Right to Award - Town reserves the right, acting in its sole discretion, to reject any bid protest that it determines lacks merit, to award the Contract to the bidder it has determined to be the responsible bidder submitting the lowest responsive bid, and to issue a Notice to Proceed with the Work notwithstanding any pending or continuing challenge to its determination.

2.11. Reservation of Rights
Town reserves the unfettered right, acting in its sole discretion, to waive or to decline to waive any immaterial bid irregularities; to accept or reject any or all bids; to cancel or reschedule the bid; to postpone or abandon the Project entirely; or to perform all or part of the Work with its own forces. The Contract will be awarded, if at all, within 60 days after opening of bids or as otherwise specified in the Special Conditions, to the responsible bidder that submitted the lowest responsive bid. Any planned start date for the Project represents the Town’s expectations at the time the Notice Inviting Bids was first issued. Town is not bound to issue a Notice to Proceed by or before such planned start date, and it reserves the right to issue the Notice to Proceed when the Town determines, in its sole discretion, the appropriate time for commencing the Work. The Town expressly disclaims responsibility for any assumptions a bidder might draw from the presence or absence of information provided by the Town in any form. Each bidder is solely responsible for its costs to prepare and submit a bid, including site investigation costs.

ITEM NO. 5.
undefined #25-813-9921
Title: 2026 Annual Curb, Gutter, and Sidewalk Maintenance 9 2.12. Bonds
Within ten calendar days following Town’s issuance of the Notice of Potential Award to the successful bidder, the bidder must submit payment and performance bonds to Town as specified in the Contract Documents using the bond forms included in the Contract Documents. All required bonds must be calculated on the maximum total Contract Price as awarded, including additive alternates, if applicable.

2.13. License(s)
The successful bidder and its Subcontractor(s) must possess the California contractor’s license(s) in the classification(s) required by law to perform the Work. The successful bidder must also obtain a Town business license within ten (10) days following Town’s issuance of the Notice of Potential Award. Subcontractors must also obtain a Town business license before performing any Work.

2.14. Ineligible Subcontractor
Any Subcontractor who is ineligible to perform work on a public works project under Labor Code §§ 1777.1 or 1777.7 is prohibited from performing work on the Project.

2.15. Safety Orders
If the Project includes construction of a pipeline, sewer, sewage disposal system, boring and jacking pits, or similar trenches or open excavations, which are five feet or deeper, each bid must include a bid item for adequate sheeting, shoring, and bracing, or equivalent method, for the protection of life or limb, which comply with safety orders as required by Labor Code § 6707.

2.16. In-Use Off-Road Diesel-Fueled Fleets
If the Project involves the use of vehicles subject to the California Air Resources Board’s In-Use Off-Road Diesel-Fueled Fleets Regulation (13 CCR § 2449 et seq.) (“Off-Road Regulation”), then within ten calendar days following Town’s issuance of the Notice of Potential Award to the successful bidder, the bidder must submit to Town valid Certificates of Reported Compliance for its fleet and its listed Subcontractors, if applicable, in accordance with the Off-Road Regulation, unless exempt under the Off-Road Regulation.

2.17. Additive and Deductive Alternates
As required by Public Contract Code § 20103.8, if this bid solicitation includes additive or deductive items, the following method will be used to determine the lowest bid: The lowest bid will be the lowest bid price on the base contract without consideration of the prices on the additive or deductive items.

2.18. Bid Schedule
Each bidder must complete the Bid Schedule form with unit prices as indicated, and submit the completed Bid Schedule with its Bid Proposal.

A. Estimated Quantities - Unless identified as a “Final Pay Quantity,” the quantities shown on the Bid Schedule are estimated and the actual quantities required to perform the Work may be greater or less than the estimated amount. The Contract Price will be adjusted to reflect the actual quantities required for the Work based on the itemized or unit prices provided in the Bid Schedule, with no allowance for anticipated profit for quantities that are deleted or decreased, and no increase in the unit price, and without regard to the percentage increase or decrease of the estimated quantity and the actual quantity.

ITEM NO. 5.
undefined #25-813-9921
Title: 2026 Annual Curb, Gutter, and Sidewalk Maintenance 10 2.19. For Reference Only
The following documents are provided “For Reference Only,” as defined in Section 3.4 of the General Conditions:
• Attachment B-Standard Plans
• Attachment C-Sample Contract
• Attachment D-Blueprint for a Clean Bay
• Attachment E-Town of Los Gatos Storm Water Pollution Control Ordinance

ITEM NO. 5.
undefined #25-813-9921
Title: 2026 Annual Curb, Gutter, and Sidewalk Maintenance 11 3. Bid Schedule
This Bid Schedule must be completed and included with the Bid Proposal. Pricing must be provided for each Bid Item as indicated. Items marked “(SW)” are Specialty Work that must be performed by a qualified Subcontractor. The lump sum or unit cost for each item must be inclusive of all costs, whether direct or indirect, including profit and overhead. The sum of all amounts entered in the “Extended Total Amount” column must be identical to the Base Bid price entered in Section 1 of the Bid Proposal form.

AL = Allowance CF = Cubic Feet CY = Cubic Yard EA = Each LB = Pounds LF = Linear Foot LS = Lump Sum SF = Square Feet TON = Ton (2000 lbs)

SCHEDULE OF QUANTITIES
Item Description Unit Quantity Unit Cost Total

1. Traffic Control L.S. 1

2. Adjust Frame and Grate to Grade Ea. 1

3. Adjust Utility Box to Grade Ea. 8

4. Adjust Water Meter Box to Grade Ea. 1

5. Remove and Reinstall Bicycle Rack Ea. 1

6. Clearing and Grubbing L.S. 1

7. Remove and Replace Curb and Gutter L.F. 1,595

8. Remove and Replace Sidewalk S.F. 8,717

9. Remove and Replace Sidewalk (Villa
Hermosa)
S.F. 120

10. Remove Hardscape and Replace with
Topsoil
S.F. 130

11. Remove and Replace Residential
Driveway (Revocable)
S.F. 100

12. Remove and Replace Commercial
Driveway
S.F. 775

13. Install Detectable Warning Surface Ea. 1

14. Install New Curb and Gutter L.F. 80

15. Install New Sidewalk S.F. 66

ITEM NO. 5.
undefined #25-813-9921
Title: 2026 Annual Curb, Gutter, and Sidewalk Maintenance 12 Item Description Unit Quantity Unit Cost Total

16. Install Curb Ramp-Case B Ea. 12

17. Install Curb Ramp-Case B (Villa
Hermosa)
Ea. 3

18. Install Curb Ramp-Case C Ea. 6

19. Install Curb Ramp-Case C (Villa
Hermosa)
Ea. 2

20. Install Curb Ramp-Case F Ea. 13

21. Install Curb Ramp-Case G Ea. 11

22. Install New Curb Ramp-Type A
Passageway
Ea. 2

23. Install New Curb Ramp-Type C
Passageway
Ea. 1

24. Remove Curb Ramp Ea. 2

25. Paint Red Curb (Revocable) L.F. 100

26. Root Prune and Install Root Barrier L.F. 100

27. Remove Sign and Post Ea. 1

28. Remove and Reinstall Sign and Post Ea. 2

29. Remove and Reinstall Sign on New
Post
Ea. 1

30. Install New Sign on New Post Ea. 1
A1.1 Install Caltrans Type A1-8 Curb L.F. 60
A1.2 Install Curb Ramp-Case A Ea. 2
TOTAL

4. Vendor Questionnaire

1. Formation date of company*
*Response required

ITEM NO. 5.
undefined #25-813-9921
Title: 2026 Annual Curb, Gutter, and Sidewalk Maintenance 13 2. Number of years providing the specified services* *Response required

3. Please list names and titles of all officers and directors. If an individual or partnership, please list names and addresses of all partners, indicating whether they are general or limited partners.* *Response required

4. Indicate whether Proposer has ever failed to complete any Agreement awarded to it. If so, note when, where, and why. Attach additional sheets, if necessary. * *Response required

5. Indicate whether Proposer has been or is the subject of a bankruptcy or insolvency proceeding or subject to assignment for the benefit of creditors. *
*Response required

6. Will you be using subcontractor/s?*
☐ Yes
☐ No
*Response required
When equals "Yes"

6.1. Subcontractor's list*
Please download the below documents, complete, and upload. • Subsontractors_list.pdf
*Response required

7. Please provide Bid Bond*
Please download the below documents, complete, and upload. • bid_bond.pdf
*Response required

8. Noncollusion Declaration*
Please download the below documents, complete, and upload. • Noncollusion_declaration_fo...
*Response required

9. Bidder’s Certifications and Warranties. *
By confirming and submitting this Bid Proposal, Bidder certifies and warrants the following:

A. Examination of Contract Documents. Bidder has thoroughly examined the Contract Documents and represents that, to the best of Bidder’s knowledge, there are no errors, omissions, or discrepancies in the Contract Documents, subject to the limitations of Public Contract Code § 1104.

ITEM NO. 5.
undefined #25-813-9921
Title: 2026 Annual Curb, Gutter, and Sidewalk Maintenance 14 B. Addenda. Bidder agrees that it has confirmed receipt of or access to, and reviewed, all addenda issued for this bid. Bidder waives any claims it might have against the Town based on its failure to receive, access, or review any addenda for any reason.

C. Examination of Worksite. Bidder has had the opportunity to examine the Worksite and local conditions at the Project location.

D. Bidder Responsibility. Bidder is a responsible bidder, with the necessary ability, capacity, experience, skill, qualifications, workforce, equipment, and resources to perform or cause the Work to be performed in accordance with the Contract Documents and within the Contract Time.

E. Responsibility for Bid. Bidder has carefully reviewed this Bid Proposal and is solely responsible for any errors or omissions contained in its completed bid. All statements and information provided in this Bid Proposal and enclosures are true and correct to the best of Bidder’s knowledge.

F. Nondiscrimination. In preparing this bid, the Bidder has not engaged in discrimination against any prospective or present employee or Subcontractor on grounds of race, color, ancestry, national origin, ethnicity, religion, sex, sexual orientation, age, disability, or marital status.

G. Iran Contracting Act. If the Contract Price exceeds $1,000,000, Bidder is not identified on a list created under the Iran Contracting Act, Public Contract Code § 2200 et seq. (the “Act”), as a person engaging in investment activities in Iran, as defined in the Act, or is otherwise expressly exempt under the Act. ☐ Please confirm
*Response required

10. Award of Contract*
Award of Contract. By confirming and submitting this Bid Proposal, Bidder agrees that, if Town issues the Notice of Potential Award to Bidder, then within ten days following issuance of the Notice of Potential Award to Bidder, Bidder will do all of the following:

A. Execute Contract. Enter into the Contract with Town in accordance with the terms of this Bid Proposal, by signing and submitting to Town the Contract prepared by Town using the form included with the Contract Documents;
B. Submit Required Bonds. Submit to Town a payment bond and a performance bond, each for 100% of the Contract Price, using the bond forms provided and in accordance with the requirements of the Contract Documents;
C. Insurance Requirements. Submit to Town the insurance certificate(s) and endorsement(s) as required by the Contract Documents; and
D. Certificates of Reported Compliance. Submit to Town valid Certificates of Reported Compliance for its fleet and its listed Subcontractors, if applicable, if the Project involves the use of vehicles subject to the Off-Road Regulation. (See Section 16 of the Instructions to Bidders.) ☐ Please confirm

ITEM NO. 5.
undefined #25-813-9921
Title: 2026 Annual Curb, Gutter, and Sidewalk Maintenance 15 *Response required

5. General Conditions
Article 1 - Definitions
Definitions - The following definitions apply to all of the Contract Documents unless otherwise indicated, e.g., additional definitions that apply solely to the Specifications or other technical documents. Defined terms and titles of documents are capitalized in the Contract Documents, with the exception of the following (in any tense or form): “day,” “furnish,” “including,” “install,” “work day,” or “working day.”
Allowance means a specific amount that must be included in the Bid Proposal for a specified purpose.

Article, as used in these General Conditions, means a numbered Article of the General Conditions, unless otherwise indicated by the context.

Change Order means a written document duly approved and executed by Town, which changes the scope of Work, the Contract Price, or the Contract Time.

Claim means a separate demand by Contractor for a change in the Contract Time or Contract Price, that has previously been submitted to Town in accordance with the requirements of the Contract Documents, and which has been rejected by Town, in whole or in part; or a written demand by Contractor objecting to the amount of Final Payment.

Contract means the signed agreement between Town and Contractor for performing the Work required for the Project, and all documents expressly incorporated therein.

Contract Documents means, collectively, all of the documents listed as such in Section 2 of the Contract, including the Notice Inviting Bids; the Instructions to Bidders; addenda, if any; the Bid Proposal and attachments thereto; the Contract; the Notice of Potential Award and Notice to Proceed; the payment and performance bonds; the General Conditions; the Special Conditions; the Project Plans and Specifications; any Change Orders; and any other documents which are clearly and unambiguously made part of the Contract Documents. The Contract Documents do not include documents provided “For Reference Only,” or documents that are intended solely to provide information regarding existing conditions.

Contract Price means the total compensation to be paid to Contractor for performance of the Work, as set forth in the Contract and as may be amended by Change Order or adjusted for an Allowance. The Contract Price is not subject to adjustment due to inflation or due to the increased cost of labor, material, supplies, or equipment following submission of the Bid Proposal.

Contract Time means the time specified for complete performance of the Work, as set forth in the Contract and as may be amended by Change Order.

Contractor means the individual, partnership, corporation, or joint-venture that has signed the Contract with Town to perform the Work.

Day means a calendar day unless otherwise specified.

Design Professional means the licensed individual(s) or firm(s) retained by Town to provide architectural, engineering, or other design professional services for the Project. If no Design Professional has been retained for this Project, any reference to Design Professional is deemed to refer to the Engineer.

DIR means the California Department of Industrial Relations.

ITEM NO. 5.
undefined #25-813-9921
Title: 2026 Annual Curb, Gutter, and Sidewalk Maintenance 16 Drawings has the same meaning as Plans.

Engineer means the Town Engineer and his or her authorized delegees.

Excusable Delay is defined in Section 5.3(B), Excusable Delay.

Extra Work means new or unforeseen work added to the Project, as determined by the Engineer in his or her sole discretion, including Work that was not part of or incidental to the scope of the Work when the Contractor’s bid was submitted; Work that is substantially different from the Work as described in the Contract Documents at bid time; or Work that results from a substantially differing and unforeseeable condition.

Final Completion means Contractor has fully completed all of the Work required by the Contract Documents to the Town’s satisfaction, including all punch list items and any required commissioning or training, and has provided the Town with all required submittals, including the instructions and manuals, product warranties, and as-built drawings.

Final Payment means payment to Contractor of the unpaid Contract Price, including release of undisputed retention, less amounts withheld or deducted pursuant to the Contract Documents.

Furnish means to purchase and deliver for the Project.

Government Code Claim means a claim submitted pursuant to California Government Code § 900 et seq.

Hazardous Materials means any substance or material identified now or in the future as hazardous under any Laws, or any other substance or material that may be considered hazardous or otherwise subject to Laws governing handling, disposal, or cleanup.

Including, whether or not capitalized, means “including, but not limited to,” unless the context clearly requires otherwise.

Inspector means the individual(s) or firm(s) retained or employed by Town to inspect the workmanship, materials, and manner of construction of the Project and its components to ensure compliance with the Contract Documents and all Laws.

Install means to fix in place for materials, and to fix in place and connect for equipment.

Laws means all applicable local, state, and federal laws, regulations, rules, codes, ordinances, permits, orders, and the like enacted or imposed by or under the auspices of any governmental entity with jurisdiction over any of the Work or any performance of the Work, including health and safety requirements.

Non-Excusable Delay is defined in Section 5.3(D), Non-Excusable Delay.

Plans means the Town-provided plans, drawings, details, or graphical depictions of the Project requirements, but does not include Shop Drawings.

Project means the public works project referenced in the Contract, as modified by any Project alternates elected by Town, if any.

Project Manager means the individual designated by Town to oversee and manage the Project on Town’s behalf and may include his or her authorized delegee(s) when the Project Manager is unavailable. If no Project Manager has been designated for this Project, any reference to Project Manager is deemed to refer to the Engineer.

Recoverable Costs is defined in Section 5.3(F), Recoverable Costs.

ITEM NO. 5.
undefined #25-813-9921
Title: 2026 Annual Curb, Gutter, and Sidewalk Maintenance 17 Request for Information or RFI means Contractor’s written request for information about the Contract Documents, the Work or the Project, submitted to Town in the manner and format specified by Town.

Section, when capitalized in these General Conditions, means a numbered section or subsection of the General Conditions, unless the context clearly indicates otherwise.

Shop Drawings means drawings, plan details or other graphical depictions prepared by or on behalf of Contractor, and subject to Town acceptance, which are intended to provide details for fabrication, installation, and the like, of items required by or shown in the Plans or Specifications.

Specialty Work means Work that must be performed by a specialized Subcontractor with the specified license or other special certification, and that the Contractor is not qualified to self-perform.

Specifications means the technical, text specifications describing the Project requirements, which are prepared for and incorporated into the Contract by or on behalf of Town, and does not include the Contract, General Conditions or Special Conditions.

Subcontractor means an individual, partnership, corporation, or joint-venture retained by Contractor directly or indirectly through a subcontract to perform a specific portion of the Work. The term Subcontractor applies to subcontractors of all tiers, unless otherwise indicated by the context. A third party such as a utility performing related work on the Project is not a Subcontractor, even if Contractor must coordinate its Work with the third party.

Technical Specifications has the same meaning as Specifications.

Town means the Town of Los Gatos, acting through its Town Council, officers, employees, Town Engineer, and any other authorized representatives.

Town Engineer means the Engineer for Town and his or her authorized delegee(s).

Work means all of the construction and services necessary for or incidental to completing the Project in conformance with the requirements of the Contract Documents.

Work Day or Working Day, whether or not capitalized, means a weekday when the Town is open for business, and does not include holidays observed by the Town.

Worksite means the place or places where the Work is performed, which includes, but may extend beyond the Project site, including separate locations for staging, storage, or fabrication.

Article 2 - Roles and Responsibilities

2.1 Town.

A. Town Council. The Town Council has final authority in all matters affecting the Project, except to the extent it has delegated authority to the Engineer.

B. Engineer. The Engineer, acting within the authority conferred by the Town Council, is responsible for administration of the Project on behalf of Town, including authority to provide directions to the Design Professional and to Contractor to ensure proper and timely completion of the Project. The Engineer’s decisions are final and conclusive within the scope of his or her authority, including interpretation of the Contract Documents.

ITEM NO. 5.
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Title: 2026 Annual Curb, Gutter, and Sidewalk Maintenance 18 C. Project Manager. The Project Manager assigned to the Project will be the primary point of contact for the Contractor and will serve as Town’s representative for daily administration of the Project on behalf of Town.

Unless otherwise specified, all of Contractor’s communications to Town (in any form) will go to or through the Project Manager. Town reserves the right to reassign the Project Manager role at any time or to delegate duties to additional Town representatives, without prior notice to or consent of Contractor.

D. Design Professional. The Design Professional is responsible for the overall design of the Project and, to the extent authorized by Town, may act on Town’s behalf to ensure performance of the Work in compliance with the Plans and Specifications, including any design changes authorized by Change Order. The Design Professional’s duties may include review of Contractor’s submittals, visits to any Worksite, inspecting the Work, evaluating test and inspection results, and participation in Project-related meetings, including any preconstruction conference, weekly meetings, and coordination meetings. The Design Professional’s interpretation of the Plans or Specifications is final and conclusive.

2.2 Contractor.

A. General. Contractor must provide all labor, materials, supplies, equipment, services, and incidentals necessary to perform and timely complete the Work in strict accordance with the Contract Documents, and in an economical and efficient manner in the best interests of Town, and with minimal inconvenience to the public.

B. Responsibility for the Work and Risk of Loss. Contractor is responsible for supervising and directing all aspects of the Work to facilitate the efficient and timely completion of the Work. Contractor is solely responsible for and required to exercise full control over the Work, including the construction means, methods, techniques, sequences, procedures, safety precautions and programs, and coordination of all portions of the Work with that of all other contractors and Subcontractors, except to the extent that the Contract Documents provide other specific instructions. Contractor’s responsibilities extend to any plan, method or sequence suggested, but not required by Town or specified in the Contract Documents. From the date of commencement of the Work until either the date on which Town formally accepts the Project or the effective date of termination of the Contract, whichever is later, Contractor bears all risks of injury or damage to the Work and the materials and equipment delivered to any Worksite, by any cause including fire, earthquake, wind, weather, vandalism, or theft.

C. Project Administration. Contractor must provide sufficient and competent administration, staff, and skilled workforce necessary to perform and timely complete the Work in accordance with the Contract Documents.

Before starting the Work, Contractor must designate in writing and provide complete contact information, including telephone numbers and email address, for the officer or employee in Contractor’s organization who is to serve as Contractor’s primary representative for the Project, and who has authority to act on Contractor’s behalf. A Subcontractor may not serve as Contractor’s primary representative.

D. On-Site Superintendent. Contractor must, at all times during performance of the Work, provide a qualified and competent full-time superintendent acceptable to Town, and assistants as necessary, who must be physically present at the Project site while any aspect of the Work is being performed. The superintendent must have full authority to act and communicate on behalf of Contractor, and Contractor will be bound by the superintendent’s communications to Town. Town’s approval of the superintendent is required before the Work commences. If Town is not satisfied with the superintendent’s performance, Town may request a qualified

ITEM NO. 5.
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Title: 2026 Annual Curb, Gutter, and Sidewalk Maintenance 19 replacement of the superintendent. Failure to comply may result in temporary suspension of the Work, at Contractor’s sole expense and with no extension of Contract Time, until an approved superintendent is physically present to supervise the Work. Contractor must provide written notice to Town, as soon as practicable, before replacing the superintendent.

E. Standards. Contractor must, at all times, ensure that the Work is performed in an efficient, skillful manner following best practices and in full compliance with the Contract Documents, Laws, and applicable manufacturer’s recommendations. Contractor has a material and ongoing obligation to provide true and complete information, to the best of its knowledge, with respect to all records, documents, or communications pertaining to the Project, including oral or written reports, statements, certifications, Change Order requests, or Claims.

F. Meetings. Contractor, its project manager, superintendent and any primary Subcontractors requested by Town, must attend a pre-construction conference, if requested by Town, as well as weekly Project progress meetings scheduled with Town. If applicable, Contractor may also be required to participate in coordination meetings with other parties relating to other work being performed on or near the Project site or in relation to the Project, including work or activities performed by Town, other contractors, or other utility owners.

G. Construction Records. Contractor will maintain up-to-date, thorough, legible, and dated daily job reports, which document all significant activity on the Project for each day that Work is performed on the Project. The daily report for each day must include the number of workers at the Project site; primary Work activities; major deliveries; problems encountered, including injuries, if any; weather and site conditions; and delays, if any.

Contractor will take date and time-stamped photographs to document general progress of the Project, including site conditions prior to construction activities, before and after photographs at offset trench laterals, existing improvements and utilities, damage and restoration. Contractor will maintain copies of all subcontracts, Projectrelated correspondence with Subcontractors, and records of meetings with Subcontractors. Upon request by the Town, Contractor will permit review of and/or provide copies of any of these construction records.

H. Responsible Party. Contractor is solely responsible to Town for the acts or omissions of any Subcontractors, or any other party or parties performing portions of the Work or providing equipment, materials or services for or on behalf of Contractor or the Subcontractors. Upon Town’s written request, Contractor must promptly and permanently remove from the Project, at no cost to Town, any employee or Subcontractor or employee of a Subcontractor who the Engineer has determined to be incompetent, intemperate or disorderly, or who has failed or refused to perform the Work as required under the Contract Documents.

I. Correction of Defects. Contractor must promptly correct, at Contractor’s sole expense, any Work that is determined by Town to be deficient or defective in any way, including workmanship, materials, parts, or equipment. Workmanship, materials, parts, or equipment that do not conform to the requirements under the Plans, Specifications, and other Contract Documents, as determined by Town, will be considered defective and subject to rejection. Contractor must also promptly correct, at Contractor’s sole expense, any Work performed beyond the lines and grades shown on the Plans or established by Town, and any Extra Work performed without Town’s prior written approval. If Contractor fails to correct or to take reasonable steps toward correcting defective Work within five days following notice from Town, or within the time specified in Town’s notice to correct, Town may elect to have the defective Work corrected by its own forces or by a third party, in which case

ITEM NO. 5.
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Title: 2026 Annual Curb, Gutter, and Sidewalk Maintenance 20 the cost of correction will be deducted from the Contract Price. If Town elects to correct defective Work due to Contractor’s failure or refusal to do so, Town or its agents will have the right to take possession of and use any equipment, supplies, or materials available at the Project site or any Worksite on Town property, in order to effectuate the correction, at no extra cost to Town. Contractor’s warranty obligations under Section 11.2, Warranty, will not be waived nor limited by Town’s actions to correct defective Work under these circumstances. Alternatively, Town may elect to retain defective Work, and deduct the difference in value, as determined by the Engineer, from payments otherwise due to Contractor. This paragraph applies to any defective Work performed by Contractor during the one-year warranty period under Section 11.2.

J. Contractor’s Records. Contractor must maintain all of its records relating to the Project in any form, including paper documents, photos, videos, electronic records, approved samples, and the construction records required pursuant to paragraph (G), above. Project records subject to this provision include complete Project cost records and records relating to preparation of Contractor’s bid, including estimates, take-offs, and price quotes or bids.

1. Contractor’s cost records must include all supporting documentation, including original receipts, invoices, and payroll records, evidencing its direct costs to perform the Work, including, but not limited to, costs for labor, materials, and equipment. Each cost record should include, at a minimum, a description of the expenditure with references to the applicable requirements of the Contract Documents, the amount actually paid, the date of payment, and whether the expenditure is part of the original Contract Price, related to an executed Change Order, or otherwise categorized by Contractor as Extra Work. Contractor’s failure to comply with this provision as to any claimed cost operates as a waiver of any rights to recover the claimed cost.

2. Contractor must continue to maintain its Project-related records in an organized manner for a period of five years after Town’s acceptance of the Project or following Contract termination, whichever occurs first.

Subject to prior notice to Contractor, Town is entitled to inspect or audit any of Contractor’s records relating to the Project during Contractor’s normal business hours. Contractor’s records may also be subject to examination and audit by the California State Auditor, pursuant to Government Code § 8546.7. The recordkeeping requirements set forth in this subsection 2.2(J) will survive expiration or termination of the Contract.

K. Copies of Project Documents. Contractor and its Subcontractors must keep copies, at the Project site, of all Work-related documents, including the Contract, permit(s), Plans, Specifications, addenda, Contract amendments, Change Orders, RFIs and RFI responses, Shop Drawings, as-built drawings, schedules, daily records, testing and inspection reports or results, and any related written interpretations. These documents must be available to Town for reference at all times during construction of the Project.

2.3 Subcontractors.

A. General. All Work which is not performed by Contractor with its own forces must be performed by Subcontractors. Town reserves the right to approve or reject any and all Subcontractors proposed to perform the Work, for reasons including the Subcontractor’s poor reputation, lack of relevant experience, financial instability, and lack of technical ability or adequate trained workforce. Each Subcontractor must obtain a Town business license before performing any Work.

ITEM NO. 5.
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Title: 2026 Annual Curb, Gutter, and Sidewalk Maintenance 21 B. Contractual Obligations. Contractor must require each Subcontractor to comply with the provisions of the Contract Documents as they apply to the Subcontractor’s portion(s) of the Work, including the generally applicable terms of the Contract Documents, and to likewise bind their subcontractors. Contractor will provide that the rights that each Subcontractor may have against any manufacturer or supplier for breach of warranty or guarantee relating to items provided by the Subcontractor for the Project, will be assigned to Town. Nothing in these Contract Documents creates a contractual relationship between a Subcontractor and Town, but Town is deemed to be a third-party beneficiary of the contract between Contractor and each Subcontractor.

C. Termination. If the Contract is terminated, each Subcontractor’s agreement must be assigned by Contractor to Town, subject to the prior rights of any surety, but only if and to the extent that Town accepts, in writing, the assignment by written notification, and assumes all rights and obligations of Contractor pursuant to each such subcontract agreement.

D. Substitution of Subcontractor. If Contractor requests substitution of a listed Subcontractor under Public Contract Code § 4107, Contractor is solely responsible for all costs Town incurs in responding to the request, including legal fees and costs to conduct a hearing, and any increased subcontract cost to perform the Work that was to be performed by the listed Subcontractor. If Town determines that a Subcontractor is unacceptable to Town based on the Subcontractor’s failure to satisfactorily perform its Work, or for any of the grounds for substitution listed in Public Contract Code § 4107(a), Town may request removal of the Subcontractor from the Project. Upon receipt of a written request from Town to remove a Subcontractor pursuant to this paragraph, Contractor will immediately remove the Subcontractor from the Project and, at no further cost to Town, will either (1) self-perform the remaining Work to the extent that Contractor is duly licensed and qualified to do so, or (2) substitute a Subcontractor that is acceptable to Town, in compliance with Public Contract Code § 4107, as applicable.

2.4 Coordination of Work.

A. Concurrent Work. Town reserves the right to perform, have performed, or permit performance of other work on or adjacent to the Project site while the Work is being performed for the Project. Contractor is responsible for coordinating its Work with other work being performed on or adjacent to the Project site, including by any utility companies or agencies, and must avoid hindering, delaying, or interfering with the work of other contractors, individuals, or entities, and must ensure safe and reasonable site access and use as required or authorized by Town. To the full extent permitted by law, Contractor must hold harmless and indemnify Town against any and all claims arising from or related to Contractor’s avoidable, negligent, or willful hindrance of, delay to, or interference with the work of any utility company or agency or another contractor or subcontractor.

B. Coordination. If Contractor’s Work will connect or interface with work performed by others, Contractor is responsible for independently measuring and visually inspecting such work to ensure a correct connection and interface. Contractor is responsible for any failure by Contractor or its Subcontractors to confirm measurements before proceeding with connecting Work. Before proceeding with any portion of the Work affected by the construction or operations of others, Contractor must give the Project Manager prompt written notification of any defects Contractor discovers which will prevent the proper execution of the Work. Failure to give notice of any known or reasonably discoverable defects will be deemed acknowledgement by Contractor that the work of others is not defective and will not prevent the proper execution of the Work. Contractor must also promptly

ITEM NO. 5.
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Title: 2026 Annual Curb, Gutter, and Sidewalk Maintenance 22 notify Town if work performed by others, including work or activities performed by Town’s own forces, is operating to hinder, delay, or interfere with Contractor’s timely performance of the Work. Town reserves the right to backcharge Contractor for any additional costs incurred due to Contractor’s failure to comply with the requirements in this Section 2.4.

2.5 Submittals. Unless otherwise specified, Contractor must submit to the Engineer for review and acceptance, all schedules, Shop Drawings, samples, product data, and similar submittals required by the Contract Documents, or upon request by the Engineer. Unless otherwise specified, all submittals, including Requests for Information, are subject to the general provisions of this Section, as well as specific submittal requirements that may be included elsewhere in the Contract Documents, including the Special Conditions or Specifications. The Engineer may require submission of a submittal schedule at or before a pre-construction conference, as may be specified in the Notice to Proceed.

A. General. Contractor is responsible for ensuring that its submittals are accurate and conform to the Contract Documents.

B. Time and Manner of Submission. Contractor must ensure that its submittals are prepared and delivered in a manner consistent with the current Town-accepted schedule for the Work and within the applicable time specified in the Contract Documents, or if no time is specified, in such time and sequence so as not to delay the performance of the Work or completion of the Project.

C. Required Contents. Each submittal must include the Project name and contract number, Contractor’s name and address, the name and address of any Subcontractor or supplier involved with the submittal, the date, and references to applicable Specification section(s) and/or drawing and detail number(s).

D. Required Corrections. If corrections are required, Contractor must promptly make and submit any required corrections as specified in full conformance with the requirements of this Section, or other requirements that apply to that submittal.

E. Effect of Review and Acceptance. Review and acceptance of a submittal by Town will not relieve Contractor from complying with the requirements of the Contract Documents. Contractor is responsible for any errors in any submittal, and review or acceptance of a submittal by Town is not an assumption of risk or liability by Town.

F. Enforcement. Any Work performed or any material furnished, installed, fabricated or used without Town’s prior acceptance of a required submittal is performed or provided at Contractor’s risk, and Contractor may be required to bear the costs incident thereto, including the cost of removing and replacing such Work, repairs to other affected portions of the Work or material, and the cost of additional time or services required of Town, including costs for the Design Professional, Project Manager, or Inspector.

G. Excessive RFIs. A RFI will be considered excessive or unnecessary if Town determines that the explanation or response to the RFI is clearly and unambiguously discernable from the Contract Documents. Town’s costs to review and respond to excessive or unnecessary RFIs may be deducted from payments otherwise due to Contractor.

2.6 Shop Drawings. When Shop Drawings are required by the Specifications or requested by the Engineer, they must be prepared according to best practices at Contractor’s expense. The Shop Drawings must be of a size and scale to clearly show all necessary details. Unless otherwise specified by Town, Shop Drawings must be provided to the Engineer for review and acceptance at least 30 days before the Work will be performed. If Town requires changes, the corrected

ITEM NO. 5.
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Title: 2026 Annual Curb, Gutter, and Sidewalk Maintenance 23 Shop Drawings must be resubmitted to the Engineer for review within the time specified by the Engineer. For all Project components requiring Shop Drawings, Contractor will not furnish materials or perform any Work until the Shop Drawings for those components are accepted by Town. Contractor is responsible for any errors or omissions in the Shop Drawings, shop fits and field corrections; any deviations from the Contract Documents; and for the results obtained by the use of Shop Drawings. Acceptance of Shop Drawings by Town does not relieve Contractor of Contractor’s responsibility.

2.7 Access to Work. Contractor must afford prompt and safe access to any Worksite by Town and its employees, agents, or consultants authorized by Town; and upon request by Town, Contractor must promptly arrange for Town representatives to visit or inspect manufacturing sites or fabrication facilities for items to be incorporated into the Work.

2.8 Personnel. Contractor and its Subcontractors must employ only competent and skillful personnel to perform the Work. Contractor and its Subcontractor’s supervisors, security or safety personnel, and employees who have unescorted access to the Project site must possess proficiency in English sufficient to read, understand, receive, and implement oral or written communications or instructions relating to their respective job functions, including safety and security requirements. Upon written notification from the Engineer, Contractor and its Subcontractors must immediately discharge any personnel who are incompetent, disorderly, disruptive, threatening, abusive, or profane, or otherwise refuse or fail to comply with the requirements of the Contract Documents or Laws, including Laws pertaining to health and safety. Any such discharged personnel may not be re-employed or permitted on the Project in any capacity without Town’s prior written consent.

Article 3 - Contract Documents

3.1 Interpretation of Contract Documents.

A. Plans and Specifications. The Plans and Specifications included in the Contract Documents are complementary.

If Work is shown on one but not on the other, Contractor must perform the Work as though fully described on both, consistent with the Contract Documents and reasonably inferable from them as being necessary to produce the indicated results. The Plans and Specifications are deemed to include and require everything necessary and reasonably incidental to completion of the Work, whether or not particularly mentioned or shown. Contractor must perform all Work and services and supply all things reasonably related to and inferable from the Contract Documents. In the event of a conflict between the Plans and Specifications, the Specifications will control, unless the drawing(s) at issue are dated later than the Specification(s) at issue. Detailed drawings take precedence over general drawings, and large-scale drawings take precedence over smaller scale drawings.

Any arrangement or division of the Plans and Specifications into sections is for convenience and is not intended to limit the Work required by separate trades. A conclusion presented in the Plans or Specifications is only a recommendation. Actual locations and depths must be determined by Contractor’s field investigation.

Contractor may request access to underlying or background information in Town’s possession that is necessary for Contractor to form its own conclusions.

B. Duty to Notify and Seek Direction. If Contractor becomes aware of a changed condition in the Project, or of any ambiguity, conflict, inconsistency, discrepancy, omission, or error in the Contract Documents, including the Plans or Specifications, Contractor must promptly submit a Request for Information to the Engineer and wait for a response from Town before proceeding further with the related Work. The RFI must notify Town of the issue and request clarification, interpretation or direction. The Engineer’s clarification, interpretation or direction will be final and binding on Contractor. If Contractor proceeds with the related Work before obtaining Town’s

ITEM NO. 5.
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Title: 2026 Annual Curb, Gutter, and Sidewalk Maintenance 24 response, Contractor will be responsible for any resulting costs, including the cost of correcting any incorrect or defective Work that results. Timely submission of a clear and complete RFI is essential to avoiding delay. Delay resulting from Contractor’s failure to submit a timely and complete RFI to the Engineer is Non-Excusable Delay.

If Contractor believes that Town’s response to an RFI justifies a change to the Contract Price or Contract Time, Contractor must perform the Work as directed, but may submit a timely Change Order request in accordance with the Contract Documents. (See Articles 5 and 6.)
C. Figures and Dimensions. Figures control over scaled dimensions.

D. Technical or Trade Terms. Any terms that have well-known technical or trade meanings will be interpreted in accordance with those meanings, unless otherwise specifically defined in the Contract Documents.

E. Measurements. Contractor must verify all relevant measurements in the Contract Documents and at the Project site before ordering any material or performing any Work, and will be responsible for the correctness of those measurements or for costs that could have been avoided by independently verifying measurements.

F. Compliance with Laws. The Contract Documents are intended to comply with Laws and will be interpreted to comply with Laws.

3.2 Order of Precedence. Information included in one Contract Document but not in another will not be considered a conflict or inconsistency. Unless otherwise specified in the Special Conditions, in case of any conflict or inconsistency among the Contract Documents, the following order of precedence will apply, beginning from highest to lowest, with the most recent version taking precedent over an earlier version:

1. Change Orders;

2. Addenda;

3. Contract;

4. Notice to Proceed;

5. Federal Contract Requirements (only if used);

6. Special Conditions;

7. General Conditions;

8. Payment and Performance Bonds;

9. Specifications;

10. Plans;

11. Notice of Potential Award;

12. Notice Inviting Bids;

13. Federal Bidding Requirements (only if used);

14. Instructions to Bidders;

15. Contractor’s Bid Proposal and attachments;

ITEM NO. 5.
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Title: 2026 Annual Curb, Gutter, and Sidewalk Maintenance 25 16. Locations of Work

17. Standard Plans; and

18. Any generic documents prepared by and on behalf of a third party, that were not prepared specifically for this Project, such as the Caltrans Standard Specifications or Caltrans Special Provisions.

3.3 Caltrans Standard Specifications. Any reference to or incorporation of the Standard Specifications of the State of California, Department of Transportation (“Caltrans”), including “Standard Specifications,” “Caltrans Specifications,” “State Specifications,” or “CSS,” means the most current edition of Caltrans’ Standard Specifications, unless otherwise specified (“Caltrans Standard Specifications”), including the most current amendments as of the date that Contractor’s bid was submitted for this Project. The following provisions apply to use of or reference to the Caltrans Standard Specifications or Special Provisions:

A. Limitations. The “General Provisions” of the Caltrans Standard Specifications, i.e., sections 1 through 9, do not apply to these Contract Documents with the exception of any specific provisions, if any, which are expressly stated to apply to these Contract Documents.

B. Conflicts or Inconsistencies. If there is a conflict or inconsistency between any provision in the Caltrans Standard Specifications or Special Provisions and a provision of these Contract Documents, as determined by Town, the provision in the Contract Documents will govern.

C. Meanings. Terms used in the Caltrans Standard Specifications or Special Provisions are to be interpreted as follows:

1. Any reference to the “Engineer” is deemed to mean the Town Engineer.

2. Any reference to the “Special Provisions” is deemed to mean the Special Conditions, unless the Caltrans Special Provisions are expressly included in the Contract Documents listed in Section 2 of the Contract.

3. Any reference to the “Department” or “State” is deemed to mean Town.

3.4 For Reference Only. Contractor is responsible for the careful review of any document, study, or report provided by Town or appended to the Contract Documents solely for informational purposes and identified as “For Reference Only.” Nothing in any document, study, or report so appended and identified is intended to supplement, alter, or void any provision of the Contract Documents. Contractor is advised that Town or its representatives may be guided by information or recommendations included in such reference documents, particularly when making determinations as to the acceptability of proposed materials, methods, or changes in the Work. Any record drawings or similar final or accepted drawings or maps that are not part of the Contract Documents are deemed to be For Reference Only. The provisions of the Contract Documents are not modified by any perceived or actual conflict with provisions in any document that is provided For Reference Only.

3.5 Current Versions. Unless otherwise specified by Town, any reference to standard specifications, technical specifications, or any Town or state codes or regulations means the latest specification, code, or regulation in effect on the date that bids were due.

3.6 Conformed Copies. If Town prepares a conformed set of the Contract Documents following award of the Contract, it will provide Contractor with two hard copy (paper) sets and one copy of the electronic file in PDF format. It is Contractor’s responsibility to ensure that all Subcontractors, including fabricators, are provided with the conformed set of the Contract Documents at Contractor’s sole expense.

ITEM NO. 5.
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Title: 2026 Annual Curb, Gutter, and Sidewalk Maintenance 26 3.7 Ownership. No portion of the Contract Documents may be used for any purpose other than construction of the Project, without prior written consent from Town. Contractor is deemed to have conveyed the copyright in any designs, drawings, specifications, Shop Drawings, or other documents (in paper or electronic form) developed by Contractor for the Project, and Town will retain all rights to such works, including the right to possession.

Article 4 - Bonds, Indemnity, and Insurance

4.1 Payment and Performance Bonds. Within ten days following issuance of the Notice of Potential Award, Contractor is required to provide a payment bond and a performance bond, each in the penal sum of not less than 100% of the Contract Price, and each executed by Contractor and its surety using the bond forms included with the Contract Documents.

A. Surety. Each bond must be issued and executed by a surety admitted in California. If an issuing surety cancels the bond or becomes insolvent, within seven days following written notice from Town, Contractor must substitute a surety acceptable to Town. If Contractor fails to substitute an acceptable surety within the specified time, Town may, at its sole discretion, withhold payment from Contractor until the surety is replaced to Town’s satisfaction, or terminate the Contract for default.

B. Supplemental Bonds for Increase in Contract Price. If the Contract Price increases during construction by five percent or more over the original Contract Price, Contractor must provide supplemental or replacement bonds within ten days of written notice from Town pursuant to this Section, covering 100% of the increased Contract Price and using the bond forms included with the Contract Documents.

4.2 Indemnity. To the fullest extent permitted by law, Contractor must indemnify, defend, and hold harmless Town, its Council, officers, officials, employees, agents, volunteers, and consultants (individually, an “Indemnitee,” and collectively the “Indemnitees”) from and against any and all liability, loss, damage, claims, causes of action, demands, charges, fines, costs, and expenses (including, without limitation, attorney fees, expert witness fees, paralegal fees, and fees and costs of litigation or arbitration) (collectively, “Liability”) of every nature arising out of or in connection with the acts or omissions of Contractor, its employees, Subcontractors, representatives, or agents, in bidding or performing the Work or in failing to comply with any obligation of Contractor under the Contract, except such Liability caused by the active negligence, sole negligence, or willful misconduct of an Indemnitee. This indemnity requirement applies to any Liability arising from alleged defects in the content or manner of submission of Contractor’s bid for the Contract.

Contractor’s failure or refusal to timely accept a tender of defense pursuant to this Contract will be deemed a material breach of the Contract. Town will timely notify Contractor upon receipt of any third-party claim relating to the Contract, as required by Public Contract Code § 9201. Contractor waives any right to express or implied indemnity against any Indemnitee. Contractor’s indemnity obligations under this Contract will survive the expiration or any early termination of the Contract.

4.3 Insurance. No later than ten days following issuance of the Notice of Potential Award, Contractor must procure and provide proof of the insurance coverage required by this Section in the form of certificates and endorsements acceptable to Town. The required insurance must cover the activities of Contractor and its Subcontractors relating to or arising from the performance of the Work, and must remain in full force and effect at all times during the period covered by the Contract, through the date of Town’s acceptance of the Project. All required insurance must be issued by a company licensed to do business in the State of California, and each such insurer must have an A.M. Best’s financial strength rating of “A” or better and a financial size rating of “VIII” or better. If Contractor fails to provide any of the required coverage in full compliance with the requirements of the Contract Documents, Town may, at its sole discretion, purchase such coverage at Contractor’s expense and deduct the cost from payments due to Contractor, or terminate the

ITEM NO. 5.
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Title: 2026 Annual Curb, Gutter, and Sidewalk Maintenance 27 Contract for default. The procurement of the required insurance will not be construed to limit Contractor’s liability under this Contract or to fulfill Contractor’s indemnification obligations under this Contract.

A. Policies and Limits. The following insurance policies and limits are required for this Contract, unless otherwise specified in the Special Conditions:

1. Commercial General Liability (“CGL”) Insurance: The CGL insurance policy must be issued on an occurrence basis, written on a comprehensive general liability form, and must include coverage for liability arising from Contractor’s or its Subcontractor’s acts or omissions in the performance of the Work, including contractor’s protective coverage, contractual liability, products and completed operations, and broad form property damage, with limits of at least $2,000,000 per occurrence and at least $4,000,000 general aggregate. The CGL insurance coverage may be arranged under a single policy for the full limits required or by a combination of underlying policies with the balance provided by excess or umbrella policies, provided each such policy complies with the requirements set forth in this Section, including required endorsements.

2. Automobile Liability Insurance: The automobile liability insurance policy must provide coverage of at least $2,000,000 combined single-limit per accident for bodily injury, death, or property damage, including hired and non-owned auto liability.

3. Workers’ Compensation Insurance and Employer’s Liability: The workers’ compensation and employer’s liability insurance policy must comply with the requirements of the California Labor Code, providing coverage of at least $1,000,000 or as otherwise required by the statute. If Contractor is self-insured, Contractor must provide its Certificate of Permission to Self-Insure, duly authorized by the DIR.

B. Notice. Each certificate of insurance must state that the coverage afforded by the policy or policies will not be reduced, cancelled or allowed to expire without at least 30 days written notice to Town, unless due to nonpayment of premiums, in which case ten days written notice must be made to Town.

C. Waiver of Subrogation. Each required policy must include an endorsement providing that the carrier will waive any right of subrogation it may have against Town.

D. Required Endorsements. The CGL policy, automobile liability policy, pollution liability policy, and builder’s risk policy must include the following specific endorsements:

1. The Town, including its Council, officials, officers, employees, agents, volunteers and consultants (collectively, “Additional Insured”) must be named as an additional insured for all liability arising out of the operations by or on behalf of the named insured, and the policy must protect the Additional Insured against any and all liability for personal injury, death or property damage or destruction arising directly or indirectly in the performance of the Contract. The additional insured endorsement must be provided using ISO form CG 20 10 11 85 or equivalent form(s) approved by the Town.

2. The inclusion of more than one insured will not operate to impair the rights of one insured against another, and the coverages afforded will apply as though separate policies have been issued to each insured.

3. The insurance provided by Contractor is primary and no insurance held or owned by any Additional Insured may be called upon to contribute to a loss.

ITEM NO. 5.
undefined #25-813-9921
Title: 2026 Annual Curb, Gutter, and Sidewalk Maintenance 28 4. This policy does not exclude explosion, collapse, underground excavation hazard, or removal of lateral support.

E. Contractor’s Responsibilities. This Section 4.3 establishes the minimum requirements for Contractor’s insurance coverage in relation to this Project, but is not intended to limit Contractor’s ability to procure additional or greater coverage. Contractor is responsible for its own risk assessment and needs and is encouraged to consult its insurance provider to determine what coverage it may wish to carry beyond the minimum requirements of this Section. Contractor is solely responsible for the cost of its insurance coverage, including premium payments, deductibles, or self-insured retentions, and no Additional Insured will be responsible or liable for any of the cost of Contractor’s insurance coverage.

F. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions that apply to the required insurance (collectively, “deductibles”) in excess of $100,000 are subject to approval by the Town’s Risk Manager, acting in his or her sole discretion, and must be declared by Contractor when it submits its certificates of insurance and endorsements pursuant to this Section 4.3. If the Town’s Risk Manager determines that the deductibles are unacceptably high, at Town’s option, Contractor must either reduce or eliminate the deductibles as they apply to Town and all required Additional Insured; or must provide a financial guarantee, to Town’s satisfaction, guaranteeing payment of losses and related investigation, claim administration, and legal expenses.

G. Subcontractors. Contractor must ensure that each Subcontractor is required to maintain the same insurance coverage required under this Section 4.3, with respect to its performance of Work on the Project, including those requirements related to the Additional Insureds and waiver of subrogation, but excluding pollution liability or builder’s risk insurance unless otherwise specified in the Special Conditions. A Subcontractor may be eligible for reduced insurance coverage or limits, but only to the extent approved in writing in advance by the Town’s Risk Manager. Contractor must confirm that each Subcontractor has complied with these insurance requirements before the Subcontractor is permitted to begin Work on the Project. Upon request by the Town, Contractor must provide certificates and endorsements submitted by each Subcontractor to prove compliance with this requirement. The insurance requirements for Subcontractors do not replace or limit the Contractor’s insurance obligations.

Article 5 - Contract Time

5.1 Time is of the Essence. Time is of the essence in Contractor’s performance and completion of the Work, and Contractor must diligently prosecute the Work and complete it within the Contract Time.

A. General. Contractor must commence the Work on the date indicated in the Notice to Proceed and must fully complete the Work in strict compliance with all requirements of the Contract Documents and within the Contract Time. Contractor may not begin performing the Work before the date specified in the Notice to Proceed.

B. Authorization. Contractor is not entitled to compensation or credit for any Work performed before the date specified in the Notice to Proceed, with the exception of any schedules, submittals, or other requirements, if any, that must be provided or performed before issuance of the Notice to Proceed.

C. Rate of Progress. Contractor and its Subcontractors must, at all times, provide workers, materials, and equipment sufficient to maintain the rate of progress necessary to ensure full completion of the Work within the

ITEM NO. 5.
undefined #25-813-9921
Title: 2026 Annual Curb, Gutter, and Sidewalk Maintenance 29 Contract Time. If Town determines that Contractor is failing to prosecute the Work at a sufficient rate of progress, Town may, in its sole discretion, direct Contractor to provide additional workers, materials, or equipment, or to work additional hours or days without additional cost to Town, in order to achieve a rate of progress satisfactory to Town. If Contractor fails to comply with Town’s directive in this regard, Town may, at Contractor’s expense, separately contract for additional workers, materials, or equipment or use Town’s own forces to achieve the necessary rate of progress. Alternatively, Town may terminate the Contract based on Contractor’s default.

5.2 Schedule Requirements. Contractor must prepare all schedules using standard, commercial scheduling software acceptable to the Engineer, and must provide the schedules in electronic and paper form as requested by the Engineer.

In addition to the general scheduling requirements set forth below, Contractor must also comply with any scheduling requirements included in the Special Conditions or in the Technical Specifications.

A. Baseline (As-Planned) Schedule. Within ten calendar days following Town’s issuance of the Notice to Proceed (or as otherwise specified in the Notice to Proceed), Contractor must submit to Town for review and acceptance a baseline (as-planned) schedule using critical path methodology showing in detail how Contractor plans to perform and fully complete the Work within the Contract Time, including labor, equipment, materials, and fabricated items. The baseline schedule must show the order of the major items of Work and the dates of start and completion of each item, including when the materials and equipment will be procured. The schedule must also include the work of all trades, reflecting anticipated labor or crew hours and equipment loading for the construction activities, and must be sufficiently comprehensive and detailed to enable progress to be monitored on a day-by-day basis. For each activity, the baseline schedule must be dated, provided in the format specified in the Contract Documents or as required by Town, and must include, at a minimum, a description of the activity, the start and completion dates of the activity, and the duration of the activity.

1. Specialized Materials Ordering. Within five calendar days following issuance of the Notice to Proceed, Contractor must order any specialized material or equipment for the Work that is not readily available from material suppliers. Contractor must also retain documentation of the purchase order date(s).

B. Town’s Review of Schedules. Town will review and may note exceptions to the baseline schedule, and to the progress schedules submitted as required below, to assure completion of the Work within the Contract Time.

Contractor is solely responsible for resolving any exceptions noted in a schedule and, within seven days, must correct the schedule to address the exceptions. Town’s review or acceptance of Contractor’s schedules will not operate to waive or limit Contractor’s duty to complete the Project within the Contract Time, nor to waive or limit Town’s right to assess liquidated damages for Contractor’s unexcused failure to do so.

C. Progress Schedules. After Town accepts the final baseline schedule with no exceptions, Contractor must submit an updated progress schedule and three-week look-ahead schedule, in the format specified by Town, for review and acceptance with each application for a progress payment, or when otherwise specified by Town, until completion of the Work. The updated progress schedule must: show how the actual progress of the Work as constructed to date compares to the baseline schedule; reflect any proposed changes in the construction schedule or method of operations, including to achieve Project milestones within the Contract Time; and identify any actual or potential impacts to the critical path. Contractor must also submit periodic reports to Town of any changes in the projected material or equipment delivery dates for the Project.

ITEM NO. 5.
undefined #25-813-9921
Title: 2026 Annual Curb, Gutter, and Sidewalk Maintenance 30 1. Float. The progress schedule must show early and late completion dates for each task. The number of days between those dates will be designated as the “float.” Any float belongs to the Project and may be allocated by the Engineer to best serve timely completion of the Project.

2. Failure to Submit Schedule. Reliable, up-to-date schedules are essential to efficient and cost-effective administration of the Project and timely completion. If Contractor fails to submit a schedule within the time periods specified in this Section, or submits a schedule to which Town has noted exceptions that are not corrected, Town may withhold up to five percent from payment(s) otherwise due to Contractor until the exceptions are resolved, the schedule is corrected and resubmitted, and Town has accepted the schedule. In addition, Contractor’s failure to comply with the schedule requirements in this Section 5.2 will be deemed a material default and a waiver of any claims for Excusable Delay or loss of productivity arising during any period when Contractor is out of compliance, subject only to the limits of Public Contract Code § 7102.

D. Recovery Schedule. If Town determines that the Work is more than one week behind schedule, within seven days following written notice of such determination, Contractor must submit a recovery schedule, showing how Contractor intends to perform and complete the Work within the Contract Time, based on actual progress to date.

E. Effect of Acceptance. Contractor and its Subcontractors must perform the Work in accordance with the most current Town-accepted schedule unless otherwise directed by Town. Town’s acceptance of a schedule does not operate to extend the time for completion of the Work or any component of the Work, and will not affect Town’s right to assess liquidated damages for Contractor’s unexcused delay in completing the Work within the Contract Time.

F. Posting. Contractor must at all times prominently post a copy of the most current Town-accepted progress or recovery schedule in its on-site office.

G. Reservation of Rights. Town reserves the right to direct the sequence in which the Work must be performed or to make changes in the sequence of the Work in order to facilitate the performance of work by Town or others, or to facilitate Town’s use of its property. The Contract Time or Contract Price may be adjusted to the extent such changes in sequence actually increase or decrease Contractor’s time or cost to perform the Work.

H. Authorized Working Days and Times. Contractor is limited to working Monday through Friday, excluding holidays, during Town’s normal business hours, except as provided in the Special Conditions or as authorized in writing by Town. Town reserves the right to charge Contractor for additional costs incurred by Town due to Work performed on days or during hours not expressly authorized in the Contract Documents, including reimbursement of costs incurred for inspection, testing, and construction management services.

5.3 Delay and Extensions of Contract Time.

A. Notice of Delay. If Contractor becomes aware of any actual or potential delay affecting the critical path, Contractor must promptly notify the Engineer in writing, regardless of the nature or cause of the delay, so that Town has a reasonable opportunity to mitigate or avoid the delay.

B. Excusable Delay. The Contract Time may be extended if Contractor encounters “Excusable Delay,” which is an unavoidable delay in completing the Work within the Contract Time due to causes completely beyond

ITEM NO. 5.
undefined #25-813-9921
Title: 2026 Annual Curb, Gutter, and Sidewalk Maintenance 31 Contractor’s control, and which Contractor could not have avoided or mitigated through reasonable care, planning, foresight, and diligence, provided that Contractor is otherwise fully performing its obligations under the Contract Documents. Grounds for Excusable Delay may include fire, natural disasters including earthquake or unusually severe weather, acts of terror or vandalism, epidemic, unforeseeable adverse government actions, unforeseeable actions of third parties, encountering unforeseeable hazardous materials, unforeseeable site conditions, or suspension for convenience under Article 13. The Contract Time will not be extended based on circumstances which will not unavoidably delay completing the Work within the Contract Time based on critical path analysis.

C. Weather Delays. A “Weather Delay Day” is a Working Day during which Contractor and its forces, including Subcontractors, are unable to perform more than 40% of the critical path Work scheduled for that day due to adverse weather conditions which impair the ability to safely or effectively perform the scheduled critical path Work that day. Adverse weather conditions may include rain, saturated soil, and Project site clean-up required due to adverse weather. Determination of what constitutes critical path Work scheduled for that day will be based on the most current, Town-approved schedule. Contractor will be entitled to a non-compensable extension of the Contract Time for each Weather Delay Day in excess of the normal Weather Delay Days within a given month as determined by reliable records, including monthly rainfall averages, for the preceding ten years (or as otherwise specified in the Special Conditions or Specifications).

1. Contractor must fully comply with the applicable procedures in Articles 5 and 6 of the General Conditions regarding requests to modify the Contract Time.

2. Contractor will not be entitled to an extension of time for a Weather Delay Day to the extent Contractor is responsible for concurrent delay on that day.

3. Contractor must take reasonable steps to mitigate the consequences of Weather Delay Days, including prudent workforce management and protecting the Work, Project Site, materials, and equipment.

D. Non-Excusable Delay. Delay which Contractor could have avoided or mitigated through reasonable care, planning, foresight, and diligence is “Non-Excusable Delay.” Contractor is not entitled to an extension of Contract Time or any compensation for Non-Excusable Delay, or for Excusable Delay that is concurrent with Non-Excusable Delay. Non-Excusable Delay includes delay caused by:

1. weather conditions which are normal for the location of the Project, as determined by reliable records, including monthly rainfall averages, for the preceding ten years;

2. Contractor’s failure to order equipment and materials sufficiently in advance of the time needed for completion of the Work within the Contract Time;

3. Contractor’s failure to provide adequate notification to utility companies or agencies for connections or services necessary for completion of the Work within the Contract Time;

4. foreseeable conditions which Contractor could have ascertained from reasonably diligent inspection of the Project site or review of the Contract Documents or other information provided or available to Contractor;

5. Contractor’s failure, refusal, or financial inability to perform the Work within the Contract Time, including insufficient funds to pay its Subcontractors or suppliers;

ITEM NO. 5.
undefined #25-813-9921
Title: 2026 Annual Curb, Gutter, and Sidewalk Maintenance 32 6. performance or non-performance by Contractor’s Subcontractors or suppliers;

7. the time required to respond to excessive RFIs (see Section 2.5(G));

8. delayed submission of required submittals, or the time required for correction and resubmission of defective submittals;

9. time required for repair of, re-testing, or re-inspection of defective Work;

10. enforcement of Laws by Town, or outside agencies with jurisdiction over the Work; or

11. Town’s exercise or enforcement of any of its rights or Contractor’s duties pursuant to the Contract Documents, including correction of defective Work, extra inspections or testing due to non-compliance with Contract requirements, safety compliance, environmental compliance, or rejection and return of defective or deficient submittals.

E. Compensable Delay. Pursuant to Public Contract Code § 7102, in addition to entitlement to an extension of Contract Time, Contractor is entitled to compensation for costs incurred due to delay caused solely by Town, when that delay is unreasonable under the circumstances involved and not within the contemplation of the parties (“Compensable Delay”). Contractor is not entitled to an extension of Contract Time or recovery of costs for Compensable Delay that is concurrent with Non-Excusable Delay.

F. Recoverable Costs. Contractor is not entitled to compensation for Excusable Delay unless it is Compensable Delay, as defined above. Contractor is entitled to recover only the actual, direct, reasonable, and substantiated costs (“Recoverable Costs”) for each working day that the Compensable Delay prevents Contractor from proceeding with more than 50% of the critical path Work scheduled for that day, based on the most recent progress schedule accepted by Town. Recoverable Costs will not include home office overhead or lost profit.

G. Request for Extension of Contract Time or Recoverable Costs. A request for an extension of Contract Time or any associated Recoverable Costs must be submitted in writing to Town within 30 calendar days of the date the delay is first encountered, even if the duration of the delay is not yet known at that time, or any entitlement to the Contract Time extension or to the Recoverable Costs will be deemed waived. In addition to complying with the requirements of this Article 5, the request must be submitted in compliance with the Change Order request procedures in Article 6 below. Strict compliance with these requirements is necessary to ensure that any delay or consequences of delay may be mitigated as soon as possible, and to facilitate cost-efficient administration of the Project and timely performance of the Work. Any request for an extension of Contract Time or Recoverable Costs that does not strictly comply with all of the requirements of Article 5 and Article 6 will be deemed waived.

1. Required Contents. The request must include a detailed description of the cause(s) of the delay and must also describe the measures that Contractor has taken to mitigate the delay and/or its effects, including efforts to mitigate the cost impact of the delay, such as by workforce management or by a change in sequencing. If the delay is still ongoing at the time the request is submitted, the request should also include Contractor’s plan for continued mitigation of the delay or its effects.

2. Delay Days and Costs. The request must specify the number of days of Excusable Delay claimed or provide a realistic estimate if the duration of the delay is not yet known. If Contractor believes it is entitled to Recoverable Costs for Compensable Delay, the request must specify the amount and basis for the

ITEM NO. 5.
undefined #25-813-9921
Title: 2026 Annual Curb, Gutter, and Sidewalk Maintenance 33 Recoverable Costs that are claimed or provide a realistic estimate if the amount is not yet known. Any estimate of delay duration or cost must be updated in writing and submitted with all required supporting documentation as soon as the actual time and cost is known. The maximum extension of Contract Time will be the number of days, if any, by which an Excusable Delay or a Compensable Delay exceeds any concurrent Non-Excusable Delay. Contractor is entitled to an extension of Contract Time, or compensation for Recoverable Costs, only if, and only to the extent that, such delay will unavoidably delay Final Completion.

3. Supporting Documentation. The request must also include any and all supporting documentation necessary to evidence the delay and its actual impacts, including scheduling and cost impacts with a time impact analysis using critical path methodology and demonstrating the unavoidable delay to Final Completion. The time impact analysis must be submitted in a form or format acceptable to Town.

4. Burden of Proof. Contractor has the burden of proving that: the delay was an Excusable Delay or Compensable Delay, as defined above; Contractor has fully complied with its scheduling obligations in Section 5.2, Schedule Requirements; Contractor has made reasonable efforts to mitigate the delay and its schedule and cost impacts; the delay will unavoidably result in delaying Final Completion; and any Recoverable Costs claimed by Contractor were actually incurred and were reasonable under the circumstances.

5. Legal Compliance. Nothing in this Section 5.3 is intended to require the waiver, alteration, or limitation of the applicability of Public Contract Code § 7102.

6. No Waiver. Any grant of an extension of Contract Time, or compensation for Recoverable Costs due to Compensable Delay, will not operate as a waiver of Town’s right to assess liquidated damages for NonExcusable Delay.

7. Dispute Resolution. In the event of a dispute over entitlement to an extension of Contract Time or compensation for Recoverable Costs, Contractor may not stop Work pending resolution of the dispute, but must continue to comply with its duty to diligently prosecute the performance and timely completion of the Work. Contractor’s sole recourse for an unresolved dispute based on Town’s rejection of a Change Order request for an extension of Contract Time or compensation for Recoverable Costs is to comply with the dispute resolution provisions set forth in Article 12 below.

5.4 Liquidated Damages. It is expressly understood that if Final Completion is not achieved within the Contract Time, Town will suffer damages from the delay that are difficult to determine and accurately specify. Pursuant to Public Contract Code § 7203, if Contractor fails to achieve Final Completion within the Contract Time due to Contractor’s NonExcusable Delay, Town will charge Contractor in the amount specified in the Contract for each calendar day that Final Completion is delayed beyond the Contract Time, as liquidated damages and not as a penalty. Any waiver of accrued liquidated damages, in whole or in part, is subject to approval of the Town Council or its authorized delegee.

A. Liquidated Damages. Liquidated damages will not be assessed for any Excusable Delay or Compensable Delay, as set forth above.

B. Milestones. Liquidated damages may also be separately assessed for failure to meet milestones specified elsewhere in the Contract Documents.

ITEM NO. 5.
undefined #25-813-9921
Title: 2026 Annual Curb, Gutter, and Sidewalk Maintenance 34 C. Setoff. Town is entitled to deduct the amount of liquidated damages assessed against any payments otherwise due to Contractor, including progress payments, Final Payment, or unreleased retention. If there are insufficient Contract funds remaining to cover the full amount of liquidated damages assessed, Town is entitled to recover the balance from Contractor or its performance bond surety.

D. Occupancy or Use. Occupancy or use of the Project in whole or in part prior to Final Completion does not constitute Town’s acceptance of the Project and will not operate as a waiver of Town’s right to assess liquidated damages for Contractor’s Non-Excusable Delay in achieving Final Completion.

E. Other Remedies. Town’s right to liquidated damages under this Section applies only to damages arising from Contractor’s Non-Excusable Delay or failure to complete the Work within the Contract Time. Town retains its right to pursue all other remedies under the Contract for other types of damage, including damage to property or persons, costs or diminution in value from defective materials or workmanship, costs to repair or complete the Work, or other liability caused by Contractor.

Article 6 - Contract Modification

6.1 Contract Modification. Subject to the limited exception set forth in subsection (D) below, any change in the Work or the Contract Documents, including the Contract Price or Contract Time, will not be a valid and binding change to the Contract unless it is formalized in a Change Order, including a “no-cost” Change Order or a unilateral Change Order. Changes in the Work pursuant to this Article 6 will not operate to release, limit, or abridge Contractor’s warranty obligations pursuant to Article 11 or any obligations of Contractor’s bond sureties.

A. Town-Directed Changes. Town may direct changes in the scope or sequence of Work or the requirements of the Contract Documents, without invalidating the Contract. Such changes may include Extra Work as set forth in subsection (C) below, or deletion or modification of portions of the Work. Contractor must promptly comply with Town-directed changes in the Work in accordance with the original Contract Documents, even if Contractor and Town have not yet reached agreement as to adjustments to the Contract Price or Contract Time for the change in the Work or for the Extra Work. Contractor is not entitled to extra compensation for cost savings resulting from “value engineering” pursuant to Public Contract Code § 7101, except to the extent authorized in advance by Town in writing, and subject to any applicable procedural requirements for submitting a proposal for value engineering cost savings.

B. Disputes. In the event of a dispute over entitlement to or the amount of a change in Contract Time or a change in Contract Price related to a Town-directed change in the Work, Contractor must perform the Work as directed and may not delay its Work or cease Work pending resolution of the dispute, but must continue to comply with its duty to diligently prosecute the performance and timely completion of the Work, including the Work in dispute. Likewise, in the event that Town and Contractor dispute whether a portion or portions of the Work are already required by the Contract Documents or constitute Extra Work, or otherwise dispute the interpretation of any portion(s) of the Contract Documents, Contractor must perform the Work as directed and may not delay its Work or cease Work pending resolution of the dispute, but must continue to comply with its duty to diligently prosecute the performance and timely completion of the Work, including the Work in dispute, as directed by Town. If Contractor refuses to perform the Work in dispute, Town may, acting in its sole discretion, elect to

ITEM NO. 5.
undefined #25-813-9921
Title: 2026 Annual Curb, Gutter, and Sidewalk Maintenance 35 delete the Work from the Contract and reduce the Contract Price accordingly, and self-perform the Work or direct that the Work be performed by others. Alternatively, Town may elect to terminate the Contract for convenience or for cause. Contractor’s sole recourse for an unresolved dispute related to changes in the Work or performance of any Extra Work is to comply with the dispute resolution provisions set forth in Article 12, below.

C. Extra Work. Town may direct Contractor to perform Extra Work related to the Project. Contractor must promptly perform any Extra Work as directed or authorized by Town in accordance with the original Contract Documents, even if Contractor and Town have not yet reached agreement on adjustments to the Contract Price or Contract Time for such Extra Work. If Contractor believes it is necessary to perform Extra Work due to changed conditions, Contractor must promptly notify the Engineer in writing, specifically identifying the Extra Work and the reason(s) the Contractor believes it is Extra Work. This notification requirement does not constitute a Change Order request pursuant to Section 6.2, below. Contractor must maintain detailed daily records that itemize the cost of each element of Extra Work, and sufficiently distinguish the direct cost of the Extra Work from the cost of other Work performed. For each day that Contractor performs Extra Work, or Work that Contractor contends is Extra Work, Contractor must submit no later than the following Working Day, a daily report of the Extra Work performed that day and the related costs, together with copies of certified payroll, invoices, and other documentation substantiating the costs (“Extra Work Report”). The Engineer will make any adjustments to Contractor’s Extra Work Report(s) based on the Engineer’s records of the Work. When an Extra Work Report(s) is agreed on and signed by both Town and Contractor, the Extra Work Report(s) will become the basis for payment under a duly authorized and signed Change Order. Failure to submit the required documentation by close of business on the next Working Day is deemed a full and complete waiver for any change in the Contract Price or Contract Time for any Extra Work performed that day.

D. Minor Changes and RFIs. Minor field changes, including RFI replies from Town, that do not affect the Contract Price or Contract Time and that are approved by the Engineer acting within his or her scope of authority, do not require a Change Order. By executing an RFI reply from Town, Contractor agrees that it will perform the Work as clarified therein, with no change to the Contract Price or Contract Time.

E. Remedy for Non-Compliance. Contractor’s failure to promptly comply with a Town-directed change is deemed a material breach of the Contract, and in addition to all other remedies available to it, Town may, at its sole discretion, hire another contractor or use its own forces to complete the disputed Work at Contractor’s sole expense, and may deduct the cost from the Contract Price.

6.2 Contractor Change Order Requests. Contractor must submit a request or proposal for a change in the Work, compensation for Extra Work, or a change in the Contract Price or Contract Time as a written Change Order request or proposal.

A. Time for Submission. Any request for a change in the Contract Price or the Contract Time must be submitted in writing to the Engineer within 30 calendar days of the date that Contractor first encounters the circumstances, information or conditions giving rise to the Change Order request, even if the total amount of the requested change in the Contract Price or impact on the Contract Time is not yet known at that time. If Town requests that Contractor propose the terms of a Change Order, unless otherwise specified in Town’s request, Contractor must

ITEM NO. 5.
undefined #25-813-9921
Title: 2026 Annual Curb, Gutter, and Sidewalk Maintenance 36 provide the Engineer with a written proposal for the change in the Contract Price or Contract Time within five working days of receiving Town’s request, in a form satisfactory to the Engineer.

B. Required Contents. Any Change Order request or proposal submitted by Contractor must include a complete breakdown of actual or estimated costs and credits, and must itemize labor, materials, equipment, taxes, insurance, subcontract amounts, and, if applicable, Extra Work Reports. Any estimated cost must be updated in writing as soon as the actual amount is known.

C. Required Documentation. All claimed costs must be fully documented, and any related request for an extension of time or delay-related costs must be included at that time and in compliance with the requirements of Article 5 of the General Conditions. Upon request, Contractor must permit Town to inspect its original and unaltered bidding records, subcontract agreements, subcontract change orders, purchase orders, invoices, or receipts associated with the claimed costs.

D. Required Form. Contractor must use Town’s form(s) for submitting all Change Order requests or proposals, unless otherwise specified by Town.

E. Certification. All Change Order requests must be signed by Contractor and must include the following certification:
“The undersigned Contractor certifies under penalty of perjury that its statements and representations in this Change Order request are true and correct. Contractor warrants that this Change Order request is comprehensive and complete as to the Work or changes referenced herein, and agrees that any known or foreseeable costs, expenses, or time extension requests not included herein, are deemed waived.”

6.3 Adjustments to Contract Price. The amount of any increase or decrease in the Contract Price will be determined based on one of the following methods listed below, in the order listed with unit pricing taking precedence over the other methods. Markup applies only to Town-authorized time and material Work, and does not apply to any other payments to Contractor. For Work items or components that are deleted in their entirety, Contractor will only be entitled to compensation for those direct, actual, and documented costs (including restocking fees), reasonably incurred before Contractor was notified of the Town’s intent to delete the Work, with no markup for overhead, profit, or other indirect costs.

A. Unit Pricing. Amounts previously provided by Contractor in the form of unit prices, either in a bid schedule or in a post-award schedule of values pursuant to Section 8.1, Schedule of Values, will apply to determine the price for the affected Work, to the extent applicable unit prices have been provided for that type of Work. No additional markup for overhead, profit, or other indirect costs will be added to the calculation.

B. Lump Sum. A mutually agreed upon, all-inclusive lump sum price for the affected Work with no additional markup for overhead, profit, or other indirect costs.

C. Time and Materials. On a time and materials basis, if and only to the extent compensation on a time and materials basis is expressly authorized by Town in advance of Contractor’s performance of the Work and subject to any not-to-exceed limit. Time and materials compensation for increased costs or Extra Work (but not decreased costs or deleted Work), will include allowed markup for overhead, profit, and other indirect costs, calculated as the total of the following sums, the cumulative total of which may not exceed the maximum markup rate of 15%:

ITEM NO. 5.
undefined #25-813-9921
Title: 2026 Annual Curb, Gutter, and Sidewalk Maintenance 37 1. All direct labor costs provided by the Contractor, excluding superintendence, project management, or administrative costs, plus 15% markup;

2. All direct material costs provided by the Contractor, including sales tax, plus 15% markup;

3. All direct plant and equipment rental costs provided by the Contractor, plus 15% markup;

4. All direct additional subcontract costs plus 10% markup for Work performed by Subcontractors; and

5. Increased bond or insurance premium costs computed at 1.5% of total of the previous four sums.

6.4 Unilateral Change Order. If the parties dispute the terms of a proposed Change Order, including disputes over the amount of compensation or extension of time that Contractor has requested, the value of deleted or changed Work, what constitutes Extra Work, or quantities used, Town may elect to issue a unilateral Change Order, directing performance of the Work, and authorizing a change in the Contract Price or Contract Time for the adjustment to compensation or time that the Town believes is merited. Contractor’s sole recourse to dispute the terms of a unilateral Change Order is to submit a timely Claim pursuant to Article 12, below.

6.5 Non-Compliance Deemed Waiver. Contractor waives its entitlement to any increase in the Contract Price or Contract Time if Contractor fails to fully comply with the provisions of this Article. Contractor will not be paid for unauthorized Extra Work.

Article 7 - General Construction Provisions

7.1 Permits, Fees, Business License, and Taxes.

A. Permits, Fees, and Town Business License. Contractor must obtain and pay for all permits, fees, and licenses required to perform the Work, including a Town business license. Contractor must cooperate with and provide notifications to all government agencies with jurisdiction over the Project, as may be required. Contractor must provide Town with copies of all records of permits and permit applications, payment of required fees, and any licenses required for the Work.

B. Taxes. Contractor must pay for all taxes on labor, material, and equipment, except Federal Excise Tax to the extent that Town is exempt from Federal Excise Tax.

7.2 Temporary Facilities. Contractor must provide, at Contractor’s sole expense, any and all temporary facilities for the Project, including an onsite staging area for materials and equipment, a field office, sanitary facilities, utilities, storage, scaffolds, barricades, walkways, and any other temporary structure required to safely perform the Work along with any incidental utility services. The location of all temporary facilities must be approved by the Town prior to installation. Temporary facilities must be safe and adequate for the intended use and installed and maintained in accordance with Laws and the Contract Documents. Contractor must fence and screen the Project site and, if applicable, any separate Worksites, including the staging area, and its operation must minimize inconvenience to neighboring properties. Additional provisions pertaining to temporary facilities may be included in the Specifications or Special Conditions.

A. Utilities. Contractor must install and maintain the power, water, sewer, and all other utilities required for the Project site, including the piping, wiring, internet and wifi connections, and any related equipment necessary to maintain the temporary facilities.

ITEM NO. 5.
undefined #25-813-9921
Title: 2026 Annual Curb, Gutter, and Sidewalk Maintenance 38 B. Removal and Repair. Contractor must promptly remove all such temporary facilities when they are no longer needed or upon completion of the Work, whichever comes first. Contractor must promptly repair any damage to Town’s property or to other property caused by the installation, use, or removal of the temporary facilities, and must promptly restore the property to its original or intended condition.

7.3 Noninterference and Site Management. Contractor must avoid interfering with Town’s use of its property at or adjacent to the Project site, including use of roadways, entrances, parking areas, walkways, and structures. Contractor must also minimize disruption of access to private property in the Project vicinity. Contractor must coordinate with affected property owners, tenants, and businesses, and maintain some vehicle and pedestrian access to their residences or properties at all times. Temporary access ramps, fencing or other measures must be provided as needed. Before blocking access to a private driveway or parking lot, Contractor must provide effective notice to the affected parties at least 48 hours in advance of the pending closure and allow them to remove vehicles. Private driveways, residences and parking lots must have access to a roadway during non-Work hours.

A. Offsite Acquisition. Unless otherwise provided by Town, Contractor must acquire, use, and dispose of, at its sole expense, any Worksites, licenses, easements, and temporary facilities necessary to access and perform the Work.

B. Offsite Staging Area and Field Office. If additional space beyond the Project site is needed, such as for the staging area or the field office, Contractor may need to make arrangements with the nearby property owner(s) to secure the space. Before using or occupying any property owned by a third party, Contractor must provide Town with a copy of the necessary license agreement, easement, or other written authorization from the property owner, together with a written release from the property owner holding Town harmless from any related liability, in a form acceptable to the Town Attorney.

C. Traffic Management. Contractor must provide traffic management and traffic controls as specified in the Contract Documents, as required by Laws, and as otherwise required to ensure public and worker safety, and to avoid interference with public or private operations or the normal flow of vehicular, bicycle, or pedestrian traffic.

7.4 Signs. No signs may be displayed on or about Town’s property, except signage which is required by Laws or by the Contract Documents, without Town’s prior written approval as to size, design, and location.

7.5 Project Site and Nearby Property Protections.

A. General. Contractor is responsible at all times, on a 24-hour basis and at its sole cost, for protecting the Work, the Project site, and the materials and equipment to be incorporated into the Work, until the Town has accepted the Project, excluding any exceptions to acceptance, if any. Except as specifically authorized by Town, Contractor must confine its operations to the area of the Project site indicated in the Plans and Specifications.

Contractor is liable for any damage caused by Contractor or its Subcontractors to the Work, Town’s property, the property of adjacent or nearby property owners and the work or personal property of other contractors working for Town, including damage related to Contractor’s failure to adequately secure the Work or any Worksite.

ITEM NO. 5.
undefined #25-813-9921
Title: 2026 Annual Curb, Gutter, and Sidewalk Maintenance 39 1. Subject to Town’s approval, Contractor will provide and install safeguards to protect the Work; any Worksite, including the Project site; Town’s real or personal property and the real or personal property of adjacent or nearby property owners, including plant and tree protections.

2. Town wastewater systems may not be interrupted. If the Work disrupts existing sewer facilities, Contractor must immediately notify Town and establish a plan, subject to Town’s approval, to convey the sewage in closed conduits back into the sanitary sewer system. Sewage must not be permitted to flow in trenches or be covered by backfill.

3. Contractor must remove with due care, and store at Town’s request, any objects or material from the Project site that Town will salvage or reuse at another location.

4. If directed by Engineer, Contractor must promptly repair or replace any property damage, as specified by the Engineer. However, acting in its sole discretion, Town may elect to have the property damage remedied otherwise, and may deduct the cost to repair or replace the damaged property from payment otherwise due to Contractor.

5. Contractor will not permit any structure or infrastructure to be loaded in a manner that will damage or endanger the integrity of the structure or infrastructure.

B. Securing Project Site. After completion of Work each day, Contractor must secure the Project site and, to the extent feasible, make the area reasonably accessible to the public unless Town approves otherwise. All excess materials and equipment not protected by approved traffic control devices must be relocated to the staging area or demobilized. Trench spoils must be hauled off the Project site daily and open excavations must be protected with steel plates. Contractor and Subcontractor personnel may not occupy or use the Project site for any purpose during non-Work hours, except as may be provided in the Contract Documents or pursuant to prior written authorization from Town.

C. Unforeseen Conditions. If Contractor encounters facilities, utilities, or other unknown conditions not shown on or reasonably inferable from the Plans or apparent from inspection of the Project site, Contractor must immediately notify the Town and promptly submit a Request for Information to obtain further directions from the Engineer. Contractor must avoid taking any action which could cause damage to the facilities or utilities pending further direction from the Engineer. The Engineer’s written response will be final and binding on Contractor. If the Engineer’s subsequent direction to Contractor affects Contractor’s cost or time to perform the Work, Contractor may submit a Change Order request as set forth in Article 6 above.

D. Support; Adjacent Properties. Contractor must provide, install, and maintain all shoring, bracing, and underpinning necessary to provide support to Town’s property and adjacent properties and improvements thereon. Contractor must provide notifications to adjacent property owners as may be required by Laws. See also, Section 7.15, Trenching of Five Feet or More.

E. Notification of Property Damage. Contractor must immediately notify the Town of damage to any real or personal property resulting from Work on the Project. Contractor must immediately provide a written report to Town of any such property damage in excess of $500 (based on estimated cost to repair or replace) within 24 hours of the occurrence. The written report must include: (1) the location and nature of the damage, and the

ITEM NO. 5.
undefined #25-813-9921
Title: 2026 Annual Curb, Gutter, and Sidewalk Maintenance 40 owner of the property, if known; (2) the name and address of each employee of Contractor or any Subcontractor involved in the damage; (3) a detailed description of the incident, including precise location, time, and names and contact information for known witnesses; and (4) a police or first responder report, if applicable. If Contractor is required to file an accident report with another government agency, Contractor will provide a copy of the report to Town.

7.6 Materials and Equipment.

A. General. Unless otherwise specified, all materials and equipment required for the Work must be new, free from defects, and of the best grade for the intended purpose, and furnished in sufficient quantities to ensure the proper and expeditious performance of the Work. Contractor must employ measures to preserve the specified quality and fitness of the materials and equipment. Unless otherwise specified, all materials and equipment required for the Work are deemed to include all components required for complete installation and intended operation and must be installed in accordance with the manufacturer’s recommendations or instructions.

Contractor is responsible for all shipping, handling, and storage costs associated with the materials and equipment required for the Work. Contractor is responsible for providing security and protecting the Work and all of the required materials, supplies, tools and equipment at Contractor’s sole cost until Town has formally accepted the Project as set forth in Section 11.1, Final Completion. Contractor will not assign, sell, mortgage, or hypothecate any materials or equipment for the Project, or remove any materials or equipment that have been installed or delivered.

B. Town-Provided. If the Work includes installation of materials or equipment to be provided by Town, Contractor is solely responsible for the proper examination, handling, storage, and installation in accordance with the Contract Documents. Contractor must notify Town of any defects discovered in Town-provided materials or equipment, sufficiently in advance of scheduled use or installation to afford adequate time to procure replacement materials or equipment as needed. Contractor is solely responsible for any loss of or damage to such items which occurs while the items are in Contractor’s custody and control, the cost of which may be offset from the Contract Price and deducted from any payment(s) due to Contractor.

C. Intellectual Property Rights. Contractor must, at its sole expense, obtain any authorization or license required for use of patented or copyright-protected materials, equipment, devices, or processes that are incorporated into the Work. Contractor’s indemnity obligations in Article 4 apply to any claimed violation of intellectual property rights in violation of this provision.

7.7 Substitutions.

A. “Or Equal.” Any Specification designating a material, product, or thing (collectively, “item”) or service by specific brand or trade name, followed by the words “or equal,” is intended only to indicate the quality and type of item or service desired, and Contractor may request use of any equal item or service. Unless otherwise stated in the Specifications, any reference to a specific brand or trade name for an item or service that is used solely for the purpose of describing the type of item or service desired, will be deemed to be followed by the words “or equal.” A substitution will only be approved if it is a true “equal” item or service in every aspect of design, function, and quality, as determined by Town, including dimensions, weight, maintenance requirements, durability, fit with other elements, and schedule impacts.

ITEM NO. 5.
undefined #25-813-9921
Title: 2026 Annual Curb, Gutter, and Sidewalk Maintenance 41 B. Request for Substitution. A post-award request for substitution of an item or service must be submitted in writing to the Engineer for approval in advance, within the applicable time period provided in the Contract Documents. If no time period is specified, the substitution request may be submitted any time within 35 days after the date of award of the Contract, or sufficiently in advance of the time needed to avoid delay of the Work, whichever is earlier.

C. Substantiation. Any available data substantiating the proposed substitute as an equal item or service must be submitted with the written request for substitution. Contractor’s failure to timely provide all necessary substantiation, including any required test results as soon as they are available, is grounds for rejection of the proposed substitution, without further review.

D. Burden of Proving Equality. Contractor has the burden of proving the equality of the proposed substitution at Contractor’s sole cost. Town has sole discretion to determine whether a proposed substitution is equal, and Town’s determination is final.

E. Approval or Rejection. If the proposed substitution is approved, Contractor is solely responsible for any additional costs or time associated with the substituted item or service. If the proposed substitution is rejected, Contractor must, without delay, install the item or use the service as specified by Town.

F. Contractor’s Obligations. Town’s approval of a proposed substitution will not relieve Contractor from any of its obligations under the Contract Documents. In the event Contractor makes an unauthorized substitution, Contractor will be solely responsible for all resulting cost impacts, including the cost of removal and replacement and the impact to other design elements.

7.8 Testing and Inspection.

A. General. All materials, equipment, and workmanship used in the Work are subject to inspection and testing by Town at all times and at all locations during construction and/or fabrication, including at any Worksite, shops, and yards. All manufacturers’ application or installation instructions must be provided to the Inspector at least ten days prior to the first such application or installation. Contractor must, at all times, make the Work available for testing or inspection. Neither Town’s inspection or testing of Work, nor its failure to do so, operate to waive or limit Contractor’s duty to complete the Work in accordance with the Contract Documents.

B. Scheduling and Notification. Contractor must cooperate with Town in coordinating the inspections and testing.

Contractor must submit samples of materials, at Contractor’s expense, and schedule all tests required by the Contract Documents in time to avoid any delay to the progress of the Work. Contractor must notify the Engineer no later than noon of the Working Day before any inspection or testing and must provide timely notice to the other necessary parties as specified in the Contract Documents. If Contractor schedules an inspection or test beyond regular Work hours, or on a Saturday, Sunday, or recognized Town holiday, Contractor must notify the Engineer at least two Working Days in advance for approval. If approved, Contractor must reimburse Town for the cost of the overtime inspection or testing. Such costs, including the Town’s hourly costs for required personnel, may be deducted from payments otherwise due to Contractor.

C. Responsibility for Costs. Town will bear the initial cost of inspection and testing to be performed by independent consultants retained by Town, subject to the following exceptions:

ITEM NO. 5.
undefined #25-813-9921
Title: 2026 Annual Curb, Gutter, and Sidewalk Maintenance 42 1. Contractor will be responsible for the costs of any subsequent inspections or tests which are required to substantiate compliance with the Contract Documents, and any associated remediation costs.

2. Contractor will be responsible for inspection costs, at Town’s hourly rates, for inspection time lost because the Work is not ready, or Contractor fails to appear for a scheduled inspection.

3. If any portion of the Work that is subject to inspection or testing is covered or concealed by Contractor prior to the inspection or testing, Contractor will bear the cost of making that portion of the Work available for the inspection or testing required by the Contract Documents, and any associated repair or remediation costs.

4. Contractor is responsible for properly shoring all compaction test sites deeper than five feet below grade, as required under Section 7.15 below.

5. Any Work or material that is defective or fails to comply with the requirements of the Contract Documents must be promptly repaired, removed, replaced, or corrected by Contractor, at Contractor’s sole expense, even if that Work or material was previously inspected or included in a progress payment.

D. Contractor’s Obligations. Contractor is solely responsible for any delay occasioned by remediation of defective or noncompliant Work or material. Inspection or testing of the Work does not in any way relieve Contractor of its obligations to perform the Work as specified. Any Work done without the inspection(s) or testing required by the Contract Documents will be subject to rejection by Town.

E. Distant Locations. If required off-site testing or inspection must be conducted at a location more than 100 miles from the Project site, Contractor is solely responsible for the additional travel costs required for testing and/or inspection at such locations.

F. Final Inspection. The provisions of this Section 7.8 also apply to final inspection under Article 11, Completion and Warranty Provisions.

7.9 Project Site Conditions and Maintenance. Contractor must at all times, on a 24-hour basis and at its sole cost, maintain the Project site and staging and storage areas in clean, neat, and sanitary condition and in compliance with all Laws pertaining to safety, air quality, and dust control. Adequate toilets must be provided, and properly maintained and serviced for all workers on the Project site, located in a suitably secluded area, subject to Town’s prior approval.

Contractor must also, on a daily basis and at its sole cost, remove and properly dispose of the debris and waste materials from the Project site.

A. Air Emissions Control. Contractor must not discharge smoke or other air contaminants into the atmosphere in violation of any Laws. Contractor must comply with all Laws, including the California Air Resources Board’s InUse Off-Road Diesel-Fueled Fleets Regulation (13 CCR § 2449 et seq.).

B. Dust and Debris. Contractor must minimize and confine dust and debris resulting from the Work. Contractor must abate dust nuisance by cleaning, sweeping, and immediately sprinkling with water excavated areas of dirt or other materials prone to cause dust, and within one hour after the Engineer notifies Contractor that an airborne nuisance exists. The Engineer may direct that Contractor provide an approved water-spraying truck for this purpose. If water is used for dust control, Contractor will only use the minimum necessary. Contractor must take all necessary steps to keep waste water out of streets, gutters, or storm drains. See Section 7.19,

ITEM NO. 5.
undefined #25-813-9921
Title: 2026 Annual Curb, Gutter, and Sidewalk Maintenance 43 Environmental Control. If Town determines that the dust control is not adequate, Town may have the work done by others and deduct the cost from the Contract Price. Contractor will immediately remove any excess excavated material from the Project site and any dirt deposited on public streets.

C. Clean up. Before discontinuing Work in an area, Contractor must clean the area and remove all debris and waste along with the construction equipment, tools, machinery, and surplus materials.

1. Except as otherwise specified, all excess Project materials, and the materials removed from existing improvements on the Project site with no salvage value or intended reuse by Town, will be Contractor’s property.

2. Hauling trucks and other vehicles leaving the Project site must be cleaned of exterior mud or dirt before traveling on Town streets. Materials and loose debris must be delivered and loaded to prevent dropping materials or debris. Contractor must immediately remove spillage from hauling on any publicly traveled way.

Streets affected by Work on the Project must be kept clean by street sweeping.

D. Disposal. Contractor must dispose of all Project debris and waste materials in a safe and legal manner.

Contractor may not burn or bury waste materials on the Project site. Contractor will not allow any dirt, refuse, excavated material, surplus concrete or mortar, or any associated washings, to be disposed of onto streets, into manholes or into the storm drain system.

E. Completion. At the completion of the Work, Contractor must remove from the Project site all of its equipment, tools, surplus materials, waste materials and debris, presenting a clean and neat appearance. Before demobilizing from the Project site, Contractor must ensure that all surfaces are cleaned, sealed, waxed, or finished as applicable, and that all marks, stains, paint splatters, and the like have been properly removed from the completed Work and the surrounding areas. Contractor must ensure that all parts of the construction are properly joined with the previously existing and adjacent improvements and conditions. Contractor must provide all cutting, fitting and patching needed to accomplish that requirement. Contractor must also repair or replace all existing improvements that are damaged or removed during the Work, both on and off the Project site, including curbs, sidewalks, driveways, fences, signs, landscaping, utilities, street surfaces and structures.

Repairs and replacements must be at least equal to the previously existing improvements, and the condition, finish and dimensions must match the previously existing improvements. Contractor must restore to original condition all property or items that are not designated for alteration under the Contract Documents and leave each Worksite clean and ready for occupancy or use by Town.

F. Non-Compliance. If Contractor fails to comply with its maintenance and cleanup obligations or any Town clean up order, Town may, acting in its sole discretion, elect to suspend the Work until the condition(s) is corrected with no increase in the Contract Time or Contract Price, or undertake appropriate cleanup measures without further notice and deduct the cost from any amounts due or to become due to Contractor.

7.10 Instructions and Manuals. Contractor must provide to Town three copies each of all instructions and manuals required by the Contract Documents, unless otherwise specified. These must be complete as to drawings, details, parts lists, performance data, and other information that may be required for Town to easily maintain and service the materials and equipment installed for this Project.

ITEM NO. 5.
undefined #25-813-9921
Title: 2026 Annual Curb, Gutter, and Sidewalk Maintenance 44 A. Submittal Requirements. All manufacturers’ application or installation instructions must be provided to Town at least ten days prior to the first such application. The instructions and manuals, along with any required guarantees, must be delivered to Town for review.

B. Training. Contractor or its Subcontractors must train Town’s personnel in the operation and maintenance of any complex equipment or systems as a condition precedent to Final Completion, if required in the Contract Documents.

7.11 As-built Drawings. Contractor and its Subcontractors must prepare and maintain at the Project site a detailed, complete and accurate as-built set of the Plans which will be used solely for the purpose of recording changes made in any portion of the original Plans in order to create accurate record drawings at the end of the Project.

A. Duty to Update. The as-built drawings must be updated as changes occur, on a daily basis if necessary. Town may withhold the estimated cost for Town to have the as-built drawings prepared from payments otherwise due to Contractor, until the as-built drawings are brought up to date to the satisfaction of Town. Actual locations to scale must be identified on the as-built drawings for all runs of mechanical and electrical work, including all site utilities installed underground, in walls, floors, or otherwise concealed. Deviations from the original Plans must be shown in detail. The exact location of all main runs, whether piping, conduit, ductwork or drain lines, must be shown by dimension and elevation. The location of all buried pipelines, appurtenances, or other improvements must be represented by coordinates and by the horizontal distance from visible above-ground improvements.

B. Final Completion. Contractor must verify that all changes in the Work are depicted in the as-built drawings and must deliver the complete set of as-built drawings to the Engineer for review and acceptance as a condition precedent to Final Completion and Final Payment.

7.12 Existing Utilities.

A. General. The Work may be performed in developed, urban areas with existing utilities, both above and below ground, including utilities identified in the Contract Documents or in other informational documents or records.

Contractor must take due care to locate identified or reasonably identifiable utilities before proceeding with trenching, excavation, or any other activity that could damage or disrupt existing utilities. This may include excavation with small equipment, potholing, or hand excavation, and, if practical, using white paint or other suitable markings to delineate the area to be excavated. Except as otherwise provided herein, Contractor will be responsible for costs resulting from damage to identified or reasonably identifiable utilities due to Contractor’s negligence or failure to comply with the Contract Documents, including the requirements in this Article 7.

B. Unidentified Utilities. Pursuant to Government Code § 4215, if, during the performance of the Work, Contractor discovers utility facilities not identified by Town in the Contract Documents, Contractor must immediately provide written notice to Town and the utility. Town assumes responsibility for the timely removal, relocation, or protection of existing main or trunkline utility facilities located on the Project site if those utilities are not identified in the Contract Documents. Contractor will be compensated in accordance with the provisions of the Contract Documents for the costs of locating, repairing damage not due to Contractor’s failure to exercise reasonable care, and removing or relocating utility facilities not indicated in the Plans or Specifications with reasonable accuracy, and for equipment on the Project necessarily idled during such work. Contractor will not

ITEM NO. 5.
undefined #25-813-9921
Title: 2026 Annual Curb, Gutter, and Sidewalk Maintenance 45 be assessed liquidated damages for delay in completion of the Work, to the extent the delay was caused by Town’s failure to provide for removal or relocation of the utility facilities.

7.13 Notice of Excavation. Contractor must comply with all applicable requirements in Government Code § 4216 et seq., which are incorporated by reference herein.

7.14 Trenching and Excavations of Four Feet or More. As required by Public Contract Code § 7104, if the Work includes digging trenches or other excavations that extend deeper than four feet below the surface, the provisions in this Section apply to the Work and the Project.

A. Duty to Notify. Contractor must promptly, and before the following conditions are disturbed, provide written notice to Town if Contractor finds any of the following conditions:

1. Material that Contractor believes may be a hazardous waste, as defined in § 25117 of the Health and Safety Code, that is required to be removed to a Class I, Class II, or Class III disposal site in accordance with the provisions of existing Laws;

2. Subsurface or latent physical conditions at the Project site differing from those indicated by information about the Project site made available to bidders prior to the deadline for submitting bids; or

3. Unknown physical conditions at the Project site of any unusual nature, materially different from those ordinarily encountered and generally recognized as inherent in work of the character required by the Contract Documents.

B. Town Investigation. Town will promptly investigate the conditions and if Town finds that the conditions materially differ from those indicated, apparent, or reasonably inferred from information about the Project site made available to bidders, or involve hazardous waste, and cause a decrease or increase in Contractor’s cost of, or the time required for, performance of any part of the Work, Town will issue a Change Order.

C. Disputes. In the event that a dispute arises between Town and Contractor regarding any of the conditions specified in subsection (B) above, or the terms of a Change Order issued by Town, Contractor will not be excused from completing the Work within the Contract Time, but must proceed with all Work to be performed under the Contract. Contractor will retain any and all rights provided either by the Contract or by Laws which pertain to the resolution of disputes between Contractor and Town.

7.15 Trenching of Five Feet or More. As required by Labor Code § 6705, if the Contract Price exceeds $25,000 and the Work includes the excavation of any trench or trenches of five feet or more in depth, a detailed plan must be submitted to Town for acceptance in advance of the excavation. The detailed plan must show the design of shoring, bracing, sloping, or other provisions to be made for worker protection from the hazard of caving ground during the excavation. If the plan varies from the shoring system standards, it must be prepared by a California registered civil or structural engineer. Use of a shoring, sloping, or protective system less effective than that required by the Construction Safety Orders is prohibited.

7.16 New Utility Connections. Except as otherwise specified, Town will pay connection charges and meter costs for new permanent utilities required by the Contract Documents, if any. Contractor must notify Town sufficiently in advance of the time needed to request service from each utility provider so that connections and services are initiated in accordance with the Project schedule.

ITEM NO. 5.
undefined #25-813-9921
Title: 2026 Annual Curb, Gutter, and Sidewalk Maintenance 46 7.17 Lines and Grades. Contractor is required to use any benchmark provided by the Engineer. Unless otherwise specified in the Contract Documents, Contractor must provide all lines and grades required to execute the Work.

Contractor must also provide, preserve, and replace if necessary, all construction stakes required for the Project. All stakes or marks must be set by a California licensed surveyor or a California registered civil engineer. Contractor must notify the Engineer of any discrepancies found between Contractor’s staking and grading and information provided by the Contract Documents. Upon completion, all Work must conform to the lines, elevations, and grades shown in the Plans, including any changes directed by a Change Order.

7.18 Historic or Archeological Items.

A. Contractor’s Obligations. Contractor must ensure that all persons performing Work at the Project site are required to immediately notify the Project Manager, upon discovery of any potential historic or archeological items, including historic or prehistoric ruins, a burial ground, archaeological or vertebrate paleontological site, including fossilized footprints or other archeological, paleontological or historical feature on the Project site (collectively, “Historic or Archeological Items”).

B. Discovery; Cessation of Work. Upon discovery of any potential Historic or Archeological Items, Work must be stopped within an 85-foot radius of the find and may not resume until authorized in writing by Town. If required by Town, Contractor must assist in protecting or recovering the Historic or Archeological Items, with any such assistance to be compensated as Extra Work on a time and materials basis under Article 6, Contract Modification. At Town’s discretion, a suspension of Work required due to discovery of Historic or Archeological Items may be treated as Excusable Delay pursuant to Article 5, or as a suspension for convenience under Article

13. 7.19 Environmental Control. Contractor must not pollute any drainage course or its tributary inlets with fuels, oils, bitumens, acids, insecticides, herbicides or other harmful materials. Contractor must prevent the release of any hazardous material or hazardous waste into the soil or groundwater, and prevent the unlawful discharge of pollutants into Town’s storm drain system and watercourses as required below. Contractor and its Subcontractors must at all times in the performance of the Work comply with all Laws concerning pollution of waterways.

A. Stormwater Permit. Contractor must comply with all applicable conditions of the State Water Resources Control Board National Pollutant Discharge Elimination System General Permit for Waste Discharge Requirements for Discharges of Stormwater Runoff Associated with Construction Activity (“Stormwater Permit”).

B. Contractor’s Obligations. If required for the Work, a copy of the Stormwater Permit is on file in Town’s principal administrative offices, and Contractor must comply with it without adjustment of the Contract Price or the Contract Time. Contractor must timely and completely submit required reports and monitoring information required by the conditions of the Stormwater Permit. Contractor also must comply with all other Laws governing discharge of stormwater, including applicable municipal stormwater management programs.

7.20 Noise Control. Contractor must comply with all applicable noise control Laws. Noise control requirements apply to all equipment used for the Work or related to the Work, including trucks, transit mixers or transient equipment that may or may not be owned by Contractor.

7.21 Mined Materials. Pursuant to the Surface Mining and Reclamation Act of 1975, Public Resources Code § 2710 et seq., any purchase of mined materials, such as construction aggregate, sand, gravel, crushed stone, road base, fill

ITEM NO. 5.
undefined #25-813-9921
Title: 2026 Annual Curb, Gutter, and Sidewalk Maintenance 47 materials, and any other mineral materials must originate from a surface mining operation included on the AB 3098 List, which may be accessed online at: https://www.conservation.ca.gov/smgb/Pages/AB-3098-List.aspx.

Article 8 - Payment

8.1 Schedule of Values. Prior to submitting its first application for payment, Contractor must prepare and submit to the Project Manager a schedule of values apportioned to the various divisions and phases of the Work, including mobilization and demobilization. If a Bid Schedule was submitted with Contractor’s bid, the amounts in the schedule of values must be consistent with the Bid Schedule. Each line item contained in the schedule of values must be assigned a value such that the total of all items equals the Contract Price. The items must be sufficiently detailed to enable accurate evaluation of the percentage of completion claimed in each application for payment, and the assigned value consistent with any itemized or unit pricing submitted with Contractor’s bid.

A. Measurements for Unit Price Work. Materials and items of Work to be paid for on the basis of unit pricing will be measured according to the methods specified in the Contract Documents.

B. Deleted or Reduced Work. Contractor will not be compensated for Work that Town has deleted or reduced in scope, except for any labor, material, or equipment costs for such Work that Contractor reasonably incurred before Contractor learned that the Work could be deleted or reduced. Contractor will only be compensated for those actual, direct and documented costs incurred, and will not be entitled to any mark up for overhead or lost profits.

8.2 Progress Payments. Following the last day of each month, or as otherwise required by the Special Conditions or Specifications, Contractor will submit to the Project Manager a monthly application for payment for Work performed during the preceding month based on the estimated value of the Work performed during that preceding month.

A. Application for Payment. Each application for payment must be itemized to include labor, materials, and equipment incorporated into the Work, and materials and equipment delivered to the Project site, as well as authorized and approved Change Orders. Each payment application must be supported by the unit prices submitted with Contractor’s Bid Schedule and/or schedule of values and any other substantiating data required by the Contract Documents.

B. Payment of Undisputed Amounts. Town will pay the undisputed amount due within 30 days after Contractor has submitted a complete and accurate payment application, subject to Public Contract Code § 20104.50. Town will deduct a percentage from each progress payment as retention, as set forth in Section 8.5, below, and may deduct or withhold additional amounts as set forth in Section 8.3, below.

8.3 Adjustment of Payment Application. Town may adjust or reject the amount requested in a payment application, including application for Final Payment, in whole or in part, if the amount requested is disputed or unsubstantiated. Contractor will be notified in writing of the basis for the modification to the amount requested. Town may also deduct or withhold from payment otherwise due based upon any of the circumstances and amounts listed below. Sums withheld from payment otherwise due will be released when the basis for that withholding has been remedied and no longer exists.

A. For Contractor’s unexcused failure to perform the Work as required by the Contract Documents, including correction or completion of punch list items, Town may withhold or deduct an amount based on the Town’s estimated cost to correct or complete the Work.

ITEM NO. 5.
undefined #25-813-9921
Title: 2026 Annual Curb, Gutter, and Sidewalk Maintenance 48 B. For loss or damage caused by Contractor or its Subcontractors arising out of or relating to performance of the Work or any failure to protect the Project site, Town may deduct an amount based on the estimated cost to repair or replace.

C. For Contractor’s failure to pay its Subcontractors and suppliers when payment is due, Town may withhold an amount equal to the total of past due payments and may opt to pay that amount separately via joint check pursuant to Section 8.6(B), Joint Checks.

D. For Contractor’s failure to timely correct rejected, nonconforming, or defective Work, Town may withhold or deduct an amount based on the Town’s estimated cost to correct or complete the Work.

E. For any unreleased stop notice, Town may withhold 125% of the amount claimed.

F. For Contractor’s failure to submit any required schedule or schedule update in the manner specified or within the time specified in the Contract Documents, Town may withhold an amount equal to five percent of the total amount requested until Contractor complies with its schedule submittal obligations.

G. For Contractor’s failure to maintain or submit as-built documents in the manner specified or within the time specified in the Contract Documents, Town may withhold or deduct an amount based on the Town’s cost to prepare the as-builts.

H. For Work performed without Shop Drawings that have been accepted by Town, when accepted Shop Drawings are required before proceeding with the Work, Town may deduct an amount based on the estimated cost to correct unsatisfactory Work or diminution in value.

I. For fines, payments, or penalties assessed under the Labor Code, Town may deduct from payments due to Contractor as required by Laws and as directed by the Division of Labor Standards Enforcement.

J. For any other costs or charges that may be withheld or deducted from payments to Contractor, as provided in the Contract Documents, including liquidated damages, Town may withhold or deduct such amounts from payment otherwise due to Contractor.

8.4 Early Occupancy. Neither Town’s payment of progress payments nor its partial or full use or occupancy of the Project constitutes acceptance of any part of the Work.

8.5 Retention. Town will retain five percent of the full amount due on each progress payment (i.e., the amount due before any withholding or deductions pursuant to Section 8.3, Adjustment of Payment Application), or the percentage stated in the Notice Inviting Bids, whichever is greater, as retention to ensure full and satisfactory performance of the Work. Contractor is not entitled to any reduction in the rate of withholding at any time, nor to release of any retention before 35 days following Town’s acceptance of the Project.

A. Substitution of Securities. As provided by Public Contract Code § 22300, Contractor may request in writing that it be allowed, at its sole expense, to substitute securities for the retention withheld by Town. Any escrow agreement entered into pursuant to this provision must fully comply with Public Contract Code § 22300 and will be subject to approval as to form by Town’s legal counsel. If Town exercises its right to draw upon such securities in the event of default pursuant to section (7) of the statutory Escrow Agreement for Security Deposits in Lieu of Retention, pursuant to subdivision (g) of Public Contract Code § 22300 (“Escrow Agreement”), and if Contractor disputes that it is in default, its sole remedy is to comply with the dispute resolution procedures in

ITEM NO. 5.
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Title: 2026 Annual Curb, Gutter, and Sidewalk Maintenance 49 Article 12 and the provisions therein. It is agreed that for purposes of this paragraph, an event of default includes Town’s rights pursuant to these Contract Documents to withhold or deduct sums from retention, including withholding or deduction for liquidated damages, incomplete or defective Work, stop payment notices, or backcharges. It is further agreed that if any individual authorized to give or receive written notice on behalf of a party pursuant to section (10) of the Escrow Agreement are unavailable to give or receive notice on behalf of that party due to separation from employment, retirement, death, or other circumstances, the successor or delegee of the named individual is deemed to be the individual authorized to give or receive notice pursuant to section (10) of the Escrow Agreement.

B. Release of Undisputed Retention. All undisputed retention, less any amounts that may be assessed as liquidated damages, retained for stop notices, or otherwise withheld pursuant to Section 8.3, Adjustment of Payment Application, will be released as Final Payment to Contractor no sooner than 35 days following recordation of the notice of completion, and no later than 60 days following acceptance of the Project by Town’s governing body or authorized designee pursuant to Section 11.1(C), Acceptance, or, if the Project has not been accepted, no later than 60 days after the Project is otherwise considered complete pursuant to Public Contract Code § 7107(c).

8.6 Payment to Subcontractors and Suppliers. Each month, Contractor must promptly pay each Subcontractor and supplier the value of the portion of labor, materials, and equipment incorporated into the Work or delivered to the Project site by the Subcontractor or supplier during the preceding month. Such payments must be made in accordance with the requirements of Laws pertaining to such payments, and those of the Contract Documents and applicable subcontract or supplier contract.

A. Withholding for Stop Notice. Pursuant to Civil Code § 9358, Town will withhold 125% of the amount claimed by an unreleased stop notice, a portion of which may be retained by Town for the costs incurred in handling the stop notice claim, including attorneys’ fees and costs, as authorized by law.

B. Joint Checks. Town reserves the right, acting in its sole discretion, to issue joint checks made payable to Contractor and a Subcontractor or supplier, if Town determines this is necessary to ensure fair and timely payment for a Subcontractor or supplier who has provided services or goods for the Project. As a condition to release of payment by a joint check, the joint check payees may be required to execute a joint check agreement in a form provided or approved by the Town Attorney’s Office. The joint check payees will be jointly and severally responsible for the allocation and disbursement of funds paid by joint check. Payment by joint check will not be construed to create a contractual relationship between Town and a Subcontractor or supplier of any tier beyond the scope of the joint check agreement.

8.7 Final Payment. Contractor’s application for Final Payment must comply with the requirements for submitting an application for a progress payment as stated in Section 8.2, above. Corrections to previous progress payments, including adjustments to estimated quantities for unit priced items, may be included in the Final Payment. If Contractor fails to submit a timely application for Final Payment, Town reserves the right to unilaterally process and issue Final Payment without an application from Contractor in order to close out the Project. For the purposes of determining the deadline for Claim submission pursuant to Article 12, the date of Final Payment is deemed to be the date that Town acts to release undisputed retention as final payment to Contractor, or otherwise provides written notice to Contractor of Final Payment or that no undisputed funds remain available for Final Payment due to offsetting withholdings or deductions

ITEM NO. 5.
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Title: 2026 Annual Curb, Gutter, and Sidewalk Maintenance 50 pursuant to Section 8.3, Adjustment of Payment Application. If the amount due from Contractor to Town exceeds the amount of Final Payment, Town retains the right to recover the balance from Contractor or its sureties.

8.8 Release of Claims. Town may, at any time, require that payment of the undisputed portion of any progress payment or Final Payment be contingent upon Contractor furnishing Town with a written waiver and release of all claims against Town arising from or related to the portion of Work covered by those undisputed amounts subject to the limitations of Public Contract Code § 7100. Any disputed amounts may be specifically excluded from the release.

8.9 Warranty of Title. Contractor warrants that title to all work, materials, or equipment incorporated into the Work and included in a request for payment will pass over to Town free of any claims, liens, or encumbrances upon payment to Contractor.

Article 9 - Labor Provisions

9.1 Discrimination Prohibited. Discrimination against any prospective or present employee engaged in the Work on grounds of race, color, ancestry, national origin, ethnicity, religion, sex, sexual orientation, age, disability, or marital status is strictly prohibited. Contractor and its Subcontractors are required to comply with all applicable Laws prohibiting discrimination, including the California Fair Employment and Housing Act (Govt. Code § 12900 et seq.), Government Code § 11135, and Labor Code §§ 1735, 1777.5, 1777.6, and 3077.5.

9.2 Labor Code Requirements.

A. Eight Hour Day. Pursuant to Labor Code § 1810, eight hours of labor constitute a legal day’s work under this Contract.

B. Penalty. Pursuant to Labor Code § 1813, Contractor will forfeit to Town as a penalty, the sum of $25.00 for each day during which a worker employed by Contractor or any Subcontractor is required or permitted to work more than eight hours in any one calendar day or more than 40 hours per calendar week, except if such workers are paid overtime under Labor Code § 1815.

C. Apprentices. Contractor is responsible for compliance with the requirements governing employment and payment of apprentices, as set forth in Labor Code § 1777.5, which is fully incorporated by reference.

D. Notices. Pursuant to Labor Code § 1771.4, Contractor is required to post all job site notices prescribed by Laws.

9.3 Prevailing Wages. Each worker performing Work under this Contract that is covered under Labor Code §§ 1720, 1720.3, or 1720.9, including cleanup at the Project site, must be paid at a rate not less than the prevailing wage as defined in §§ 1771 and 1774 of the Labor Code. The prevailing wage rates are on file with the Town and available online at http://www.dir.ca.gov/dlsr. Contractor must post a copy of the applicable prevailing rates at the Project site.

A. Penalties. Pursuant to Labor Code § 1775, Contractor and any Subcontractor will forfeit to Town as a penalty up to $200.00 for each calendar day, or portion thereof, for each worker paid less than the applicable prevailing wage rate. Contractor must also pay each worker the difference between the applicable prevailing wage rate and the amount actually paid to that worker.

B. Federal Requirements. If this Project is subject to federal prevailing wage requirements in addition to California prevailing wage requirements, Contractor and its Subcontractors are required to pay the higher of the currently applicable state or federal prevailing wage rates.

ITEM NO. 5.
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Title: 2026 Annual Curb, Gutter, and Sidewalk Maintenance 51 9.4 Payroll Records. Contractor must comply with the provisions of Labor Code §§ 1771.4, 1776, and 1812 and all implementing regulations, which are fully incorporated by this reference, including requirements for monthly electronic submission of payroll records to the DIR.

A. Contractor and Subcontractor Obligations. Contractor and each Subcontractor must keep accurate payroll records, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed in connection with the Work. Each payroll record must contain or be verified by a written declaration that it is made under penalty of perjury, stating both of the following:

1. The information contained in the payroll record is true and correct; and

2. Contractor or the Subcontractor has complied with the requirements of Labor Code §§ 1771, 1811, and 1815 for any Work performed by its employees on the Project.

B. Certified Record. A certified copy of an employee’s payroll record must be made available for inspection or furnished to the employee or his or her authorized representative on request, to Town, to the Division of Labor Standards Enforcement, to the Division of Apprenticeship Standards of the DIR, and as further required by the Labor Code.

C. Enforcement. Upon notice of noncompliance with Labor Code § 1776, Contractor or Subcontractor has ten days in which to comply with the requirements of this section. If Contractor or Subcontractor fails to do so within the ten-day period, Contractor or Subcontractor will forfeit a penalty of $100.00 per day, or portion thereof, for each worker for whom compliance is required, until strict compliance is achieved. Upon request by the Division of Apprenticeship Standards, or the Division of Labor Standards Enforcement, these penalties will be withheld from payments then due to Contractor.

9.5 Labor Compliance. Pursuant to Labor Code § 1771.4, the Contract for this Project is subject to compliance monitoring and enforcement by the DIR.

Article 10 - Safety Provisions

10.1 Safety Precautions and Programs. Contractor and its Subcontractors are fully responsible for safety precautions and programs, and for the safety of persons and property in the performance of the Work. Contractor and its Subcontractors must at all times comply with all applicable health and safety Laws and seek to avoid injury, loss, or damage to persons or property by taking reasonable steps to protect its employees and other persons at any Worksite, materials and equipment stored on or off site, and property at or adjacent to any Worksite.

A. Reporting Requirements. Contractor must immediately notify the Town of any death, serious injury or illness resulting from Work on the Project. Contractor must immediately provide a written report to Town of each recordable accident or injury occurring at any Worksite within 24 hours of the occurrence. The written report must include: (1) the name and address of the injured or deceased person; (2) the name and address of each employee of Contractor or of any Subcontractor involved in the incident; (3) a detailed description of the incident, including precise location, time, and names and contact information for known witnesses; and (4) a police or first responder report, if applicable. If Contractor is required to file an accident report with a government agency, Contractor will provide a copy of the report to Town.

ITEM NO. 5.
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Title: 2026 Annual Curb, Gutter, and Sidewalk Maintenance 52 B. Legal Compliance. Contractor’s safety program must comply with the applicable legal and regulatory requirements. Contractor must provide Town with copies of all notices required by Laws.

C. Contractor’s Obligations. Any damage or loss caused by Contractor arising from the Work which is not insured under property insurance must be promptly remedied by Contractor.

D. Remedies. If Town determines, in its sole discretion, that any part of the Work or Project site is unsafe, Town may, without assuming responsibility for Contractor’s safety program, require Contractor or its Subcontractor to cease performance of the Work or to take corrective measures to Town’s satisfaction. If Contractor fails to promptly take the required corrective measures, Town may perform them and deduct the cost from the Contract Price. Contractor agrees it is not entitled to submit a Claim for damages, for an increase in Contract Price, or for a change in Contract Time based on Contractor’s compliance with Town’s request for corrective measures pursuant to this provision.

10.2 Hazardous Materials. Unless otherwise specified in the Contract Documents, this Contract does not include the removal, handling, or disturbance of any asbestos or other Hazardous Materials. If Contractor encounters materials on the Project site that Contractor reasonably believes to be asbestos or other Hazardous Materials, and the asbestos or other Hazardous Materials have not been rendered harmless, Contractor may continue Work in unaffected areas reasonably believed to be safe, but must immediately cease work on the area affected and report the condition to Town. No asbestos, asbestos-containing products or other Hazardous Materials may be used in performance of the Work.

10.3 Material Safety. Contractor is solely responsible for complying with § 5194 of Title 8 of the California Code of Regulations, including by providing information to Contractor’s employees about any hazardous chemicals to which they may be exposed in the course of the Work. A hazard communication program and other forms of warning and training about such exposure must be used. Contractor must also maintain Safety Data Sheets (“SDS”) at the Project site, as required by Laws, for materials or substances used or consumed in the performance of the Work. The SDS will be accessible and available to Contractor’s employees, Subcontractors, and Town.

A. Contractor Obligations. Contractor is solely responsible for the proper delivery, handling, use, storage, removal, and disposal of all materials brought to the Project site and/or used in the performance of the Work. Contractor must notify the Engineer if a specified product or material cannot be used safely.

B. Labeling. Contractor must ensure proper labeling on any material brought onto the Project site so that any persons working with or in the vicinity of the material may be informed as to the identity of the material, any potential hazards, and requirements for proper handling, protections, and disposal.

10.4 Hazardous Condition. Contractor is solely responsible for determining whether a hazardous condition exists or is created during the course of the Work, involving a risk of bodily harm to any person or risk of damage to any property.

If a hazardous condition exists or is created, Contractor must take all precautions necessary to address the condition and ensure that the Work progresses safely under the circumstances. Hazardous conditions may result from, but are not limited to, use of specified materials or equipment, the Work location, the Project site condition, the method of construction, or the way any Work must be performed.

10.5 Emergencies. In an emergency affecting the safety or protection of persons, Work, or property at or adjacent to any Worksite, Contractor must take reasonable and prompt actions to prevent damage, injury, or loss, without prior

ITEM NO. 5.
undefined #25-813-9921
Title: 2026 Annual Curb, Gutter, and Sidewalk Maintenance 53 authorization from the Town if, under the circumstances, there is inadequate time to seek prior authorization from the Town.

Article 11 - Completion and Warranty Provisions

11.1 Final Completion.

A. Final Inspection and Punch List. When the Work required by this Contract is fully performed, Contractor must provide written notification to Town requesting final inspection. The Engineer will schedule the date and time for final inspection, which must include Contractor’s primary representative for this Project and its superintendent. Based on that inspection, Town will prepare a punch list of any items that are incomplete, missing, defective, incorrectly installed, or otherwise not compliant with the Contract Documents. The punch list to Contractor will specify the time by which all of the punch list items must be completed or corrected. The punch list may include Town’s estimated cost to complete each punch list item if Contractor fails to do so within the specified time. The omission of any non-compliant item from a punch list will not relieve Contractor from fulfilling all requirements of the Contract Documents. Contractor’s failure to complete any punch list item within the time specified in the punch list will not waive or abridge its warranty obligations for any such items that must be completed by the Town or by a third party retained by the Town due to Contractor’s failure to timely complete any such outstanding item.

B. Requirements for Final Completion. Final Completion will be achieved upon completion or correction of all punch list items, as verified by Town’s further inspection, and upon satisfaction of all other Contract requirements, including any commissioning required under the Contract Documents and submission of all final submittals, including instructions and manuals as required under Section 7.10, and complete, final as-built drawings as required under Section 7.11, all to Town’s satisfaction.

C. Acceptance. The Project will be considered accepted upon Town Council action during a public meeting to accept the Project, unless the Engineer is authorized to accept the Project, in which case the Project will be considered accepted upon the date of the Engineer’s issuance of a written notice of acceptance. In order to avoid delay of Project close out, the Town may elect, acting in its sole discretion, to accept the Project as complete subject to exceptions for punch list items that are not completed within the time specified in the punch list.

D. Final Payment and Release of Retention. Final Payment and release of retention, less any sums withheld pursuant to the provisions of the Contract Documents, will not be made sooner than 35 days after recordation of the notice of completion. If Contractor fails to complete all of the punch list items within the specified time, Town may withhold up to 150% of Town’s estimated cost to complete each of the remaining items from Final Payment and may use the withheld retention to pay for the costs to self-perform the outstanding items or to retain a third party to complete any such outstanding punch list item.

11.2 Warranty.

A. General. Contractor warrants that all materials and equipment will be new unless otherwise specified, of good quality, in conformance with the Contract Documents, and free from defective workmanship and materials.

Contractor further warrants that the Work will be free from material defects not intrinsic in the design or materials required in the Contract Documents. Contractor warrants that materials or items incorporated into

ITEM NO. 5.
undefined #25-813-9921
Title: 2026 Annual Curb, Gutter, and Sidewalk Maintenance 54 the Work comply with the requirements and standards in the Contract Documents, including compliance with Laws, and that any Hazardous Materials encountered or used were handled as required by Laws. At Town’s request, Contractor must furnish satisfactory evidence of the quality and type of materials and equipment furnished. Contractor’s warranty does not extend to damage caused by normal wear and tear, or improper use or maintenance.

B. Warranty Period. Contractor’s warranty must guarantee its Work for a period of one year from the date of Project acceptance (the “Warranty Period”), except when a longer guarantee is provided by a supplier or manufacturer or is required by the Specifications or Special Conditions. Contractor must obtain from its Subcontractors, suppliers and manufacturers any special or extended warranties required by the Contract Documents.

C. Warranty Documents. As a condition precedent to Final Completion, Contractor must supply Town with all warranty and guarantee documents relevant to equipment and materials incorporated into the Work and guaranteed by their suppliers or manufacturers.

D. Subcontractors. The warranty obligations in the Contract Documents apply to Work performed by Contractor and its Subcontractors, and Contractor agrees to be co-guarantor of such Work.

E. Contractor’s Obligations. Upon written notice from Town to Contractor of any defect in the Work discovered during the Warranty Period, Contractor or its responsible Subcontractor must promptly correct the defective Work at its own cost. Contractor’s obligation to correct defects discovered during the Warranty Period will continue past the expiration of the Warranty Period as to any defects in Work for which Contractor was notified prior to expiration of the Warranty Period. Work performed during the Warranty Period (“Warranty Work”) will be subject to the warranty provisions in this Section 11.2 for a one-year period that begins upon completion of such Warranty Work to Town’s satisfaction.

F. Town’s Remedies. If Contractor or its responsible Subcontractor fails to correct defective Work within ten days following notice by Town, or sooner if required by the circumstances, Town may correct the defects to conform with the Contract Documents at Contractor’s sole expense. Contractor must reimburse Town for its costs in accordance with subsection (H), below.

G. Emergency Repairs. In cases of emergency where any delay in correcting defective Work could cause harm, loss or damage, Town may immediately correct the defects to conform with the Contract Documents at Contractor’s sole expense. Contractor or its surety must reimburse Town for its costs in accordance with subsection (H), below.

H. Reimbursement. Contractor must reimburse Town for its costs to repair under subsections (F) or (G), above, within 30 days following Town’s submission of a demand for payment pursuant to this provision. If Town is required to initiate legal action to compel Contractor’s compliance with this provision, and Town is the prevailing party in such action, Contractor and its surety are solely responsible for all of Town’s attorney’s fees and legal costs expended to enforce Contractor’s warranty obligations herein, in addition to any and all costs Town incurs to correct the defective Work.

ITEM NO. 5.
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Title: 2026 Annual Curb, Gutter, and Sidewalk Maintenance 55 11.3 Use Prior to Final Completion. Town reserves the right to occupy or make use of the Project, or any portions of the Project, prior to Final Completion if Town has determined that the Project or portion of it is in a condition suitable for the proposed occupation or use, and that it is in its best interest to occupy or make use of the Project, or any portions of it, prior to Final Completion.

A. Non-Waiver. Occupation or use of the Project, in whole or in part, prior to Final Completion will not operate as acceptance of the Work or any portion of it, nor will it operate as a waiver of any of Town’s rights or Contractor’s duties pursuant to these Contract Documents, and will not affect nor bear on the determination of the time of substantial completion with respect to any statute of repose pertaining to the time for filing an action for construction defect.

B. Town’s Responsibility. Town will be responsible for the cost of maintenance and repairs due to normal wear and tear with respect to those portions of the Project that are being occupied or used before Final Completion.

The Contract Price or the Contract Time may be adjusted pursuant to the applicable provisions of these Contract Documents if, and only to the extent that, any occupation or use under this Section actually adds to Contractor’s cost or time to complete the Work within the Contract Time.

11.4 Substantial Completion. For purposes of determining “substantial completion” with respect to any statute of repose pertaining to the time for filing an action for construction defect, “substantial completion” is deemed to mean the last date that Contractor or any Subcontractor performs Work on the Project prior to Town acceptance of the Project, except for warranty work performed under this Article.

Article 12 - Dispute Resolution

12.1 Claims. This Article applies to and provides the exclusive procedures for any Claim arising from or related to the Contract or performance of the Work.

A. Definition. “Claim” means a separate demand by Contractor, submitted in writing by registered or certified mail with return receipt requested, for a change in the Contract Time, including a time extension or relief from liquidated damages, or a change in the Contract Price, when the demand has previously been submitted to Town in accordance with the requirements of the Contract Documents, and which has been rejected or disputed by Town, in whole or in part. A Claim may also include that portion of a unilateral Change Order that is disputed by the Contractor.

B. Limitations. A Claim may only include the portion of a previously rejected demand that remains in dispute between Contractor and Town. With the exception of any dispute regarding the amount of money actually paid to Contractor as Final Payment, Contractor is not entitled to submit a Claim demanding a change in the Contract Time or the Contract Price, which has not previously been submitted to Town in full compliance with Article 5 and Article 6, and subsequently rejected in whole or in part by Town.

C. Scope of Article. This Article is intended to provide the exclusive procedures for submission and resolution of Claims of any amount and applies in addition to the provisions of Public Contract Code § 9204 and § 20104 et seq., which are incorporated by reference herein.

D. No Work Delay. Notwithstanding the submission of a Claim or any other dispute between the parties related to the Project or the Contract Documents, Contractor must perform the Work and may not delay or cease Work

ITEM NO. 5.
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Title: 2026 Annual Curb, Gutter, and Sidewalk Maintenance 56 pending resolution of a Claim or other dispute, but must continue to diligently prosecute the performance and timely completion of the Work, including the Work pertaining to the Claim or other dispute.

E. Informal Resolution. Contractor will make a good faith effort to informally resolve a dispute before initiating a Claim, preferably by face-to-face meeting between authorized representatives of Contractor and Town.

12.2 Claims Submission. A Claim must be submitted in writing by registered or certified mail with return receipt requested, and must comply with the following requirements:

A. Substantiation. The Claim must be submitted to Town in writing, clearly identified as a “Claim” submitted pursuant to this Article 12 and must include all of the documents necessary to substantiate the Claim including the Change Order request that was rejected in whole or in part, and a copy of Town’s written rejection that is in dispute. The Claim must clearly identify and describe the dispute, including relevant references to applicable portions of the Contract Documents, and a chronology of relevant events. Any Claim for additional payment must include a complete, itemized breakdown of all known or estimated labor, materials, taxes, insurance, and subcontract, or other costs. Substantiating documentation such as payroll records, receipts, invoices, or the like, must be submitted in support of each component of claimed cost. Any Claim for an extension of time or delay costs must be substantiated with a schedule analysis and narrative depicting and explaining claimed time impacts.

B. Claim Format and Content. A Claim must be submitted submitted in writing by registered or certified mail with return receipt requested in the following format:

1. Provide a cover letter, specifically identifying the submission as a “Claim” submitted under this Article 12 and specifying the requested remedy (e.g., amount of proposed change to Contract Price and/or change to Contract Time).

2. Provide a summary of each Claim, including underlying facts and the basis for entitlement, and identify each specific demand at issue, including the specific Change Order request (by number and submittal date), and the date of Town's rejection of that demand, in whole or in part.

3. Provide a detailed explanation of each issue in dispute. For multiple issues included within a single Claim or for multiple Claims submitted concurrently, separately number and identify each individual issue or Claim, and include the following for each separate issue or Claim:
a. A succinct statement of the matter in dispute, including Contractor’s position and the basis for that position;
b. Identify and attach all documents that substantiate the Claim, including relevant provisions of the Contract Documents, RFIs, calculations, and schedule analysis (see subsection (A), Substantiation, above);
c. A chronology of relevant events; and
d. Analysis and basis for claimed changes to Contract Price, Contract Time, or any other remedy requested.

4. Provide a summary of issues and corresponding claimed damages. If, by the time of the Claim submission deadline (below), the precise amount of the requested change in the Contract Price or Contract Time is not

ITEM NO. 5.
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Title: 2026 Annual Curb, Gutter, and Sidewalk Maintenance 57 yet known, Contractor must provide a good faith estimate, including the basis for that estimate, and must identify the date by which it is anticipated that the Claim will be updated to provide final amounts.

5. Include the following certification, executed by Contractor’s authorized representative: “The undersigned Contractor certifies under penalty of perjury that its statements and representations in this Claim submittal are true and correct. Contractor warrants that this Claim submittal is comprehensive and complete as to the matters in dispute, and agrees that any costs, expenses, or delay not included herein are deemed waived.” C. Submission Deadlines.

1. A Claim disputing rejection of a request for a change in the Contract Time or Contract Price must be submitted within 30 days following the date that Town notified Contractor in writing that a request for a change in the Contract Time or Contract Price, duly submitted in compliance with Article 5 and Article 6, has been rejected in whole or in part. A Claim disputing the terms of a unilateral Change Order must be submitted within 30 days following the date of issuance of the unilateral Change Order. These Claim deadlines apply even if Contractor cannot yet quantify the total amount of any requested change in the Contract Time or Contract Price. If the Contractor cannot quantify those amounts, it must submit an estimate of the amounts claimed pending final determination of the requested remedy by Contractor.

2. With the exception of any dispute regarding the amount of Final Payment, any Claim must be filed on or before the date of Final Payment or will be deemed waived.

3. A Claim disputing the amount of Final Payment must be submitted within 30 days of the effective date of Final Payment, under Section 8.7, Final Payment.

4. Strict compliance with these Claim submission deadlines is necessary to ensure that any dispute may be mitigated as soon as possible, and to facilitate cost-efficient administration of the Project. Any Claim that is not submitted within the specified deadlines will be deemed waived by Contractor.

12.3 Town’s Response. Town will respond within 45 days of receipt of the Claim with a written statement identifying which portion(s) of the Claim are disputed, unless the 45-day period is extended by mutual agreement of Town and Contractor or as otherwise allowed under Public Contract Code § 9204. However, if Town determines that the Claim is not adequately substantiated pursuant to Section 12.2(A), Substantiation, Town may first request in writing, within 30 days of receipt of the Claim, any additional documentation supporting the Claim or relating to defenses to the Claim that Town may have against the Claim.

A. Additional Information. If additional information is thereafter required, it may be requested and provided upon mutual agreement of Town and Contractor. If Contractor’s Claim is based on estimated amounts, Contractor has a continuing duty to update its Claim as soon as possible with information on actual amounts in order to facilitate prompt and fair resolution of the Claim.

B. Non-Waiver. Any failure by Town to respond within the times specified above will not be construed as acceptance of the Claim, in whole or in part, or as a waiver of any provision of these Contract Documents.

12.4 Meet and Confer. If Contractor disputes Town’s written response, or Town fails to respond within the specified time, within 15 days of receipt of Town’s response or within 15 days of Town’s failure to respond within the applicable 45-day time period under Section 12.3, respectively, Contractor may notify Town of the dispute in writing sent by