Murrieta City Council
December 2, 2025

The City of Murrieta intends to comply with the Americans with Disabilities Act (ADA). Persons with special needs should call the City Clerk Department at (951) 461-6031 or email at [email protected] at least 72 hours in advance. Any writings or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection at the public counter at City Hall located at 1 Town Square, Murrieta, CA during normal business hours.

Any presentation requiring the use of the City of Murrieta’s equipment must be submitted to the City Clerk ’s department 72 hours prior to the scheduled City Council meeting at City Hall located at 1 Town Square, Murrieta, CA; via email at [email protected] or call (951) 461-6031. Any writings or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection at the public counter at City Hall located at 1 Town Square, Murrieta, CA during normal business hours.

Cindy Warren
Mayor
Jon Levell Lisa DeForest Mayor Pro Tem Council Member Lori Stone Ron Holliday Council Member Council Member Justin Clifton, City Manager
Tiffany Israel, City Attorney
Cristal McDonald, City Clerk

MURRIETA CITY COUNCIL (CC)

MURRIETA COMMUNITY SERVICES DISTRICT (CSD)

MURRIETA FIRE DISTRICT (FD)

MURRIETA LIBRARY BOARD (LB)

MURRIETA REDEVELOPMENT SUCCESSOR AGENCY (RSA)

MURRIETA HOUSING AUTHORITY (HA)

MURRIETA FINANCING AUTHORITY (FA)
YOU MAY VIEW THE MEETING LIVESTREAMED VIA THE CITY’S WEBSITE AT https://murrieta.legistar.com/Calendar.aspx

CITY OF MURRIETA
Council Chambers
1 Town Square
Murrieta, CA 92562
Tuesday, December 2, 2025
5:30 PM CLOSED SESSION
6:00 PM REGULAR MEETING
1 City Council Meeting Agenda December 2, 2025
5:30 PM CLOSED SESSION

CALL TO ORDER

ROLL CALL

PUBLIC COMMENTS - CLOSED SESSION ITEMS ONLY

ANNOUNCEMENT OF CLOSED SESSION ITEMS

CLOSED SESSION
CS1. Conference with Legal Counsel - Anticipated Litigation The City Council will conduct a closed session, pursuant to Government Code Section 54956.9(d)(2), because there is significant exposure to litigation for one case.

RECESS TO CLOSED SESSION
6:00 PM REGULAR MEETING

CALL TO ORDER

ANNOUNCEMENT OF CLOSED SESSION ACTION

ROLL CALL

PLEDGE OF ALLEGIANCE

INVOCATION

PRESENTATIONS

APPROVAL OF AGENDA

CITY MANAGER - ADMINISTRATIVE UPDATE
Community Services: Recap of 2025 City Aquatic Program at Vista Murrieta High School Municipal Services: Status Update on Municipal Services CIP Projects

GOVERNING BODY COMMISSION/COMMITTEE/BOARD (CCB)

REPORTS/ANNOUNCEMENTS
Governing Body CCB Reports is the opportunity for the City Council to provide a brief report on conferences, seminars, and Commission, Committees, and /or Boards meeting attendance.

Reports shall not exceed three minutes. Governing Body Announcements is the opportunity for the City Council to provide miscellaneous reports and announcements. Announcements shall not exceed two minutes. The City Clerk will use the computerized timer.

2 City Council Meeting Agenda December 2, 2025

PUBLIC COMMENTS (NON-AGENDA)
At this time any person may address the governing bodies on any subject pertaining to City business, which does not relate to any item listed on the printed agenda. Normally no action may be considered or taken by the governing bodies on any matter not listed on the agenda .

Each speaker will be limited to three minutes.

CONSENT CALENDAR - APPROVAL OF ITEMS 1 – 14
All matters listed on the Consent Calendar are to be considered routine by the governing bodies, and will be enacted by one motion in the form listed. There will be no discussion of these items unless, before the governing body votes on the motion to adopt, specific items are removed from the Consent Calendar for separate motions.

1. Waive Reading of All Ordinance Adoptions on the Agenda and Read by Title Only Recommended Action:

Waive reading, by title only, of all Ordinances and Resolutions. Said Ordinances and Resolutions which appear on the public agenda shall be determined to have been read by title and further reading waived.

2. Minutes
Recommended Action:

Approve the November 18, 2025 Regular City Council Meeting minutes.

3. First Amendment to the Agreement with Governmentjobs.com, Inc. dba NEOGOV Recommended Action:

Approve the first amendment to the agreement with Governmentjobs.com, Inc. dba NEOGOV to add the Learn module for Fiscal Year 2025/26, and 2026/27 in the amount not to exceed $45,457.83.

4. Consider Participation as Amicus Curiae in the Request for the California Supreme Court to Take the Appeal of New Commune DTLA LLC v. City of Redondo Beach in which a Developer Successfully Challenged the Use of Overlay Zones in Redondo Beach’s Certified Housing Element
Recommended Action:

Authorize participation in the request that the California Supreme Court accept the appeal of the Court of Appeal’s New Commune DTLA LLC v. City of Redondo Beach decision as an amicus curiae.

3 City Council Meeting Agenda December 2, 2025

5. Award a Construction Contract for Alderwood Park Pickleball Courts Project Recommended Action:

Amend the Fiscal Year 2025/26 Capital Improvement Plan budget to appropriate $175,000 for Capital Improvement Project No. 22042;
Approve the use of the General Fund unassigned funds in the amount of $175,000; Award the construction contract for the Alderwood Pickleball Courts Project, Capital Improvement Project 22042, to the lowest responsible bidder, Micon Construction, Inc., in the amount of $307,628.60, plus a 15% contingency; and
Authorize the Mayor to execute the agreement.

6. Annual Adoption of the Investment Policy for Fiscal Year 2025/26 Recommended Action:

Adopt Resolution No. 25-4897 entitled: A Resolution of the City Council of the City of Murrieta, California, Adopting the Fiscal Year 2025/26 Investment Policy.

7. Approval of the Third Amendment with Alchemy Group, Inc. for Federal Legislative Advocacy and Fifth Amendment with Townsend Public Affairs, Inc. for Grant Writing and Legislative Advocacy
Recommended Action:

Approve the Third Amendment to the Agreement with the Alchemy Group, Inc. for an amount not to exceed $60,000 for federal legislative advocacy services for an additional year; Approve a Fifth Amendment to the Agreement with Townsend Public Affairs, Inc. for an additional three years in the total amount not to exceed $414,000, for grant writing and legislative advocacy services; and
Authorize the City Manager to execute the amendments in a form approved by the City Attorney.

8. Approve the Recognized Obligation Payment Schedule and Administrative Budget for Fiscal Year 2026/27
Recommended Action:

Adopt Resolution No. RSA 25 -36 entitled: A Resolution of the Successor Agency to the Murrieta Redevelopment Agency Approving a Recognized Obligation Payment Schedule for the Period from July 1, 2026, through June 30, 2027, Approving the Successor Agency’s Proposed Administrative Budget for Fiscal Year 2026/27, and Authorizing Posting and Transmittal Thereof.

4 City Council Meeting Agenda December 2, 2025

9. Emergency Declaration for Fire Station 2 Showers & Restroom Recommended Action:

Adopt Resolution No. 25-4898, entitled: A Resolution of the City Council of the City of Murrieta, California, Declaring an Emergency and Approving the Execution of a Public Works Contract for the Restoration of Showers and Restroom Facilities at Murrieta Fire and Rescue Station 2 without Notice for Bids Pursuant to California Public Contracts Code Sections 1102, 20168, and 22050;
Amend the Capital Improvement Plan Budget for Fiscal Year 2025/26 and appropriate $275,000 from the General Fund Fire Facility Reserve into CIP No. 21038; Amend the Fiscal Year 2025/26 Operating Budget as referenced in the Fiscal Impact statement; and
Authorize the City Manager to execute a Public Works Construction Contract in an amount not to exceed $190,000, plus a 15% contingency, for the Fire Station 2 Showers and Restroom Restoration Project, CIP No. 21038.

10. Declaration that Emergency Conditions Persist in Connection with the Hayes Avenue Bridge at Miller Canyon Creek
Recommended Action:

Adopt Resolution No. 25-4899 entitled: A Resolution of the City Council of the City of Murrieta, California, Declaring that Emergency Conditions Persist in Connection with the Hayes Avenue Bridge at Miller Canyon Creek.

11. On-Call Professional Services Agreements for Traffic Count Services Recommended Action:

Approve the On-Call Professional Services Agreement with Field Data Services of Arizona, Inc. in an amount not-to-exceed $100,000;
Approve the On -Call Professional Services Agreement with National Data & Surveying Services, Inc. in an amount not-to-exceed $100,000;
Approve the On -Call Professional Services Agreement with Transportation Studies, Inc. in an amount not-to-exceed $100,000; and

Authorize the City Manager to execute the Agreements and any subsequent extensions within the approved threshold.

5 City Council Meeting Agenda December 2, 2025

12. Transportation Uniform Mitigation Fee Reimbursement Agreement Amendment No. 1 for Murrieta Hot Springs Road Improvement Project, CIP No. 8079 Recommended Action:

Approve Amendment No. 1 to the Reimbursement Agreement 23 -SW-MUR-1191 between the Western Riverside Council of Governments and the City of Murrieta for Murrieta Hot Springs Road Improvement Project, Capital Improvement Plan No. 8079; Amend the Fiscal Year 2025/26 Capital Improvement Plan to establish an appropriation for Capital Improvement Project No. 8380, as detailed in the fiscal impact statement and Authorize the Mayor to execute the Agreement.

13. Transportation Uniform Mitigation Fee Reimbursement Agreement for the Jefferson Avenue Improvement Project, CIP No. 8380
Recommended Action:

Approve the Reimbursement Agreement 25 -SW-MUR-1409 between the Western Riverside Council of Governments and the City of Murrieta for the Jefferson Avenue Improvement Project, Capital Improvement Plan No. 8380;

Amend the Fiscal Year 2025/26 Capital Improvement Plan to establish appropriation for Capital Improvement Project No. 8380, as detailed in the fiscal impact statement; and Authorize the Mayor to execute the Agreement.

14. Transportation Uniform Mitigation Fee Reimbursement Agreement for the Whitewood Road Improvement Project, CIP No. 8389
Recommended Action:

Approve the Reimbursement Agreement 24 -SW-MUR-1313 between the Western Riverside Council of Governments and the City of Murrieta for the Whitewood Road Improvement Project, CIP No. 8389;
Amend the Fiscal Year 2025/26 Capital Improvement Plan to establish appropriation for Capital Improvement Project No. 8389, as detailed in the fiscal impact statement; and Authorize the Mayor to execute the Agreement.

PULLED CONSENT CALENDAR ITEMS

PUBLIC HEARINGS

6 City Council Meeting Agenda December 2, 2025

15. Fiscal Year 2026/27 Allocation of Community Development Block Grant Funding Recommended Action:

Conduct a public hearing to receive community input on the Community Development Block Grant funding applications;
Appropriate funding and create a budget for eligible projects and/or programs/activities; Adopt Resolution No. 25-4900 entitled: A Resolution of the City Council of the City of Murrieta, California, Authorizing the Allocation of Community Development Block Grant Funds for Fiscal Year 2026/27; and

Authorize the City Manager to execute all related applications and agreements in a form approved by the City Attorney up to the final CDBG allocation by the County of Riverside.

DISCUSSION

16. Fiscal Year 2025/26 First Quarter Financial Status Report and Proposed Budget Adjustments
Recommended Action:

Amend the Fiscal Year 2025/26 Operating Budget and approve the First Quarter Proposed Budget Adjustments as referenced in the Fiscal Impact statement; Amend the Fiscal Year 2025/26 Capital Improvement Plan (CIP) budget to establish budget appropriations for Capital Improvement Project Nos. 08303, 13058, 22035, and 22036 as detailed in the Fiscal Impact statement;
Approve the use of Assigned Fund Balance for the Fire Fund and establish expenditures budget as allowed in the AMR Enhancement Fee Agreement; and Approve the updated Schedule of Authorized Positions list.

17. Legislative Workgroup Subcommittee Appointments for 2026 Recommended Action:

Appoint members to the Legislative Workgroup Subcommittee based on interest and a nomination process for federal and state representatives to be effective upon installation of the Mayor on December 16, 2025.

NOTIFICATIONS
Notice of Pending Approval of Final Parcel Map – PM 38568

RECONSIDERATION

COUNCIL MEMBER REQUESTS TO ADD ITEMS TO FUTURE AGENDAS

ADJOURNMENT

7 CITY OF MURRIETA
City Council Meeting Agenda
Report
12/2/2025
Agenda Item No. CS1.

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8 CITY OF MURRIETA
City Council Meeting Agenda
Report
12/2/2025
Agenda Item No. 1.

TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Cristal McDonald, City Clerk
PREPARED BY: Kimberly Ramirez, Deputy City Clerk
SUBJECT:

Waive Reading of All Ordinance Adoptions on the Agenda and Read by Title Only

RECOMMENDATION
Waive reading, by title only, of all Ordinances and Resolutions. Said Ordinances and Resolutions which appear on the public agenda shall be determined to have been read by title and further reading waived.

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9 CITY OF MURRIETA
City Council Meeting Agenda
Report
12/2/2025
Agenda Item No. 2.

TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Cristal McDonald, City Clerk
PREPARED BY: Kimberly Ramirez, Deputy City Clerk
SUBJECT:

Minutes

RECOMMENDATION
Approve the November 18, 2025 Regular City Council Meeting minutes.

ATTACHMENTS

1. November 18, 2025 Minutes
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10 Meeting Minutes
City Council November 18, 2025

CITY OF MURRIETA Tuesday, November 18, 2025
Council Chambers 3:30 PM WORKSHOP
1 Town Square 5:00 PM CLOSED SESSION
Murrieta, CA 92562 6:00 PM REGULAR MEETING

MINUTES

The City of Murrieta intends to comply with the Americans with Disabilities Act (ADA). Persons with special needs should call the City Clerk Department at (951) 461-6031 or email at [email protected] at least 72 hours in advance. Any writings or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection at the public counter at City Hall located at 1 Town Square, Murrieta, CA during normal business hours.

Any presentation requiring the use of the City of Murrieta’s equipment must be submitted to the City Clerk’s department 72 hours prior to the scheduled City Council meeting at City Hall located at 1 Town Square, Murrieta, CA; via email at [email protected] or call (951) 461-6031. Any writings or documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection at the public counter at City Hall located at 1 Town Square, Murrieta, CA during normal business hours.

Cindy Warren
Mayor

Jon Levell Lisa DeForest Mayor Pro Tem Council Member

Lori Stone Ron Holliday Council Member Council Member

Justin Clifton, City Manager
Tiffany Israel, City Attorney
Cristal McDonald, City Clerk

MURRIETA CITY COUNCIL (CC)

MURRIETA COMMUNITY SERVICES DISTRICT (CSD)

MURRIETA FIRE DISTRICT (FD)

MURRIETA LIBRARY BOARD (LB)

MURRIETA REDEVELOPMENT SUCCESSOR AGENCY (RSA)

MURRIETA HOUSING AUTHORITY (HA)

MURRIETA FINANCING AUTHORITY (FA)

YOU MAY VIEW THE MEETING LIVESTREAMED VIA THE CITY’S WEBSITE AT https://murrieta.legistar.com/Calendar.aspx

11 Meeting Minutes
City Council November 18, 2025

3:30 PM WORKSHOP
CALL TO ORDER 3:30 PM

ROLL CALL

Present: Council Member Lisa DeForest
Council Member Lori Stone
Council Member Ron Holliday
Mayor Pro Tem Jon Levell
Mayor Cindy Warren

WORKSHOP
WS1. Hillside Updates (DCA-2021-2396) - Workshop 5

Staff report and PowerPoint presentation provided by Senior Planner Chris Tracy.

Development Services Director David Chantarangsu, Deputy Director of Development Services Jarrett Ramaiya, and GIS Analyst Cameron Butt were available to answer questions from the City Council.

The following topics were discussed:
• Retaining Wall Design Standards;
• Landscaping and Fire Code Requirements;
• Policy on Developed vs. Undeveloped Properties; and
• Defining Terms and Code Clarity

Public Comments:

Alan Long: Spoke on concerns over ambiguity in definitions, ordinance review process, and advocated for administrative flexibility.

Kassen Klein: Spoke on property development difficulties caused by the ordinance, concerns over policy goals and spoke in favor of providing incentives for removing invasive
trees.

Action: After discussion, staff was directed by consensus to ensure the language in the ordinance is clear, objective, and will withstand changes in city staff over time, provide clarification on the definition of "front yard" in rural areas versus tract home areas, explore options for giving credit to developers/homeowners for removing fire-prone trees, while still maintaining an urban forest, further discuss the treatment of already-disturbed properties versus undisturbed properties in the hillside areas and bring the Hillside Updates back to Council for further review.

12 Meeting Minutes
City Council November 18, 2025

5:00 PM CLOSED SESSION
CALL TO ORDER 5:07 p.m.

ROLL CALL

Present: Council Member Lisa DeForest
Council Member Lori Stone
Council Member Ron Holliday
Mayor Pro Tem Jon Levell
Mayor Cindy Warren
PUBLIC COMMENTS - CLOSED SESSION ITEMS ONLY None

ANNOUNCEMENT OF CLOSED SESSION ITEMS

City Clerk Cristal McDonald announced the following Closed Session items:

CLOSED SESSION
CS1. Conference with Legal Counsel
The City Council will conduct a closed session with the City Manager, Assistant City Manager, Administrative Services Director and City Attorney pursuant to Government Code section 54956.95(b), to consider the following worker's compensation claim(s):

Weller (Claim No. 23-171302), and Schloss (Claim No. 25014888).

CS2. Conference with Legal Counsel - Anticipated Litigation The City Council will conduct a closed session, pursuant to Government Code Section 54956.9(d)(2), because there is significant exposure to litigation for one case.

RECESS TO CLOSED SESSION 5:08 p.m.
6:00 PM REGULAR MEETING
CALL TO ORDER 6:01 p.m.

ANNOUNCEMENT OF CLOSED SESSION ACTION

City Attorney Tiffany Israel reported the following Closed Session Action:

CS1.- CS2.: No reportable action.
13 Meeting Minutes
City Council November 18, 2025

ROLL CALL

Present: Council Member Lisa DeForest
Council Member Lori Stone
Council Member Ron Holliday
Mayor Pro Tem Jon Levell
Mayor Cindy Warren
PLEDGE OF ALLEGIANCE Police Chief Matthew Henry
INVOCATION Police Chaplain Monte Jones

PRESENTATIONS
Presentation: Champion for Murrieta

Presentations were taken out of order. The Champion for Murrieta was presented first.

Council Member Holliday left the meeting at 6:10 p.m.

Proclamation: Retirement - Corporal Matt Mozingo
Presentation: Waste Management - Recycling All Stars

APPROVAL OF AGENDA

Action: It was moved by Council Member DeForest, seconded by Council Member Stone, to approve the Agenda for November 18, 2025.

The motion carried by the following vote:

Ayes: DeForest, Stone, Levell, Warren
Noes: None

Absent: Holliday

CITY MANAGER - ADMINISTRATIVE UPDATE

Community Services: Special Events, Community Services Director Brian Ambrose 14 Meeting Minutes
City Council November 18, 2025

GOVERNING BODY COMMISSION/COMMITTEE/BOARD (CCB)

REPORTS/ANNOUNCEMENTS

Council Member DeForest: Provided Announcements to be made part of the City’s record.

Council Member Stone: Provided attendance/reported the following:
• Western Regional Council of Governments (WRCOG)
Provided Announcements to be made part of the City’s
record.

Mayor Pro Tem Levell: Provided verbal Announcements.

Mayor Warren: Provided attendance/reported the following:
• Riverside County Transportation Commission (RCTC)
•Town Square Park & Amphitheater Ad-Hoc
Subcommittee
Provided Announcements to be made part of the City’s
record.

PUBLIC COMMENTS (NON-AGENDA)
Chelsea Richi: On behalf of the Laurel Cemetery, invited the City Council to the Wreaths Across America Ceremony on December
13th, 2025.

CONSENT CALENDAR - APPROVAL OF ITEMS 1 – 12
Action: It was moved by Council Member DeForest, seconded by Mayor Pro Tem Levell to approve Consent Calendar Item Nos. 1-12.

The motion carried by the following vote:

Ayes: DeForest, Stone, Levell, Warren
Noes: None

Absent: Holliday

1. Waive Reading of All Ordinance Adoptions on the Agenda and Read by Title Only Recommended Action:

Waive reading, by title only, of all Ordinances and Resolutions. Said Ordinances and Resolutions which appear on the public agenda shall be determined to have been read by title and further reading waived.

2. Minutes
Recommended Action:

Approve the November 4, 2025 Regular City Council meeting minutes. 15 Meeting Minutes
City Council November 18, 2025

3. Check Register September 2025
Recommended Action:

Adopt a Resolution 25-4893 entitled: A Resolution of the City Council of the City of Murrieta, California, Ratifying the Consolidated Check Register for the month of September 2025.

4. Monthly Investment Transaction Report for September 2025 Recommended Action:

Receive and file the Monthly Investment Transaction Report for September 2025.

5. Treasurer’s Report - Quarter 1 of Fiscal Year 2025/26 Recommended Action:

Receive the Fiscal Year 2025/26 Treasurer’s Reports for Quarter 1 (July - September 2025).

6. Murrieta Children’s Library Expansion Project - Furniture, Fixtures & Equipment Recommended Action:

Authorize the purchase and installation of furniture, fixtures, and equipment for the Murrieta Children’s Library Expansion Project in an amount not-to-exceed $506,146.05; and

Authorize the City Manager and/or designee to execute all necessary documents to facilitate the purchase of the furniture, fixtures, and equipment for the Expansion Project.

7. Acceptance of a State of California Office of Traffic Safety Grant Award for Fire Department Vehicle Extrication Equipment
Recommended Action:

Adopt a Resolution No. 25-4894 entitled: A Resolution of the City Council of the City of Murrieta, California Accepting a Grant Award through the Regional Crash Response and Extrication Improvement Program Administered by the State of California Office of Traffic Safety;

Accept a State of California Office of Traffic Safety Program Grant Award in the amount of $120,000;

Amend the Fiscal Year 2025/26 Operating Budget to allocate and appropriate the $120,000 in grant funds and carry over any unused grant budget to Fiscal Year 2026/27; and

Authorize the Fire Chief, and/or their designee, to execute all necessary documents and take actions required to accept, implement, and administer the grant, including ratification of the designee’s earlier execution of the grant agreement.

8. Acceptance of a Grant from the Office of Traffic Safety Department of Alcoholic Beverage Control
Recommended Action:

Adopt Resolution No. 25-4895 entitled: A Resolution of the City Council of the City of Murrieta, California Accepting a Grant through the Alcohol Policing Partnership Administered by the Department of Alcoholic Beverage Control; and

Amend the Fiscal Year 2025/26 Operating Budget to allocate and appropriate the grant funding.
16 Meeting Minutes
City Council November 18, 2025

9. Approve an Agreement with American Emergency Products for Police Vehicle Equipment Installation Services
Recommended Action:

Approve a five year on-call agreement with American Emergency Products for Police Vehicle Equipment Installation Service; and

Authorize the City Manager to execute the Agreement.

10. Agreement for Right-of-Way Consulting Services for the Keller Road at I-215 Interchange Project, CIP No. 8449
Recommended Action:

Approve the Agreement for right-of-way consulting services for the Keller Road at I-215 Interchange, Capital Improvement Plan No. 8449, with Monument ROW, Inc., in the amount of $382,682.16;

Authorize a 10% contingency of $38,268.21; and

Authorize the City Manager to execute the Agreement and any amendments to the Agreement not-to-exceed 10% of the contract amount.

11. Transportation Uniform Mitigation Fee Reimbursement Agreement - Amendment No. 1 for Keller Road/Interstate 215 Interchange, CIP No. 8449 Recommended Action:

Amend the Fiscal Year (FY) 2025/26 Capital Improvement Plan to establish an appropriation for Capital Improvement Project No. 8449, as detailed in the fiscal impact statement;

Approve Amendment No. 1 to the Reimbursement Agreement with the Western Riverside Council of Governments for the Keller Road at I-215 Interchange Project, CIP No. 8449, WRCOG project number 16-SW-MUR-118; and

Authorize the Mayor to execute the Agreement Amendment No. 1.

12. Update City Public Works Standard Drawings
Recommended Action:

Adopt Resolution No. 25-4896 entitled: A Resolution of the City Council of the City of Murrieta, California, Adopting the City Public Works Standard Drawings.

PULLED CONSENT CALENDAR ITEMS None

PUBLIC HEARINGS

13. Public Hearing and Second Reading of Ordinance No. 625-25 Adopting the 2025 California Building Standards Code

Staff report and PowerPoint presentation provided by Building Official Andy Krogh.

Development Services Director David Chantarangsu, Fire Chief Bernard Molloy, and Fire Marshall Doug Strosnider were available to answer questions from the City Council. 17 Meeting Minutes
City Council November 18, 2025

The public hearing was opened at 7:15 p.m.

Public Testimony: None

The public hearing was closed at 7:15 p.m.

Action: It was moved by Mayor Pro Tem Levell, seconded by Council Member DeForest, to conduct the second reading and adopt Ordinance No. 625- 25 entitled: An Ordinance of the City Council of the City of Murrieta, California, Adopting the 2025 California Building Standards Code.

The motion carried by the following vote:

Ayes: DeForest, Stone, Levell, Warren
Noes: None

Absent: Holliday

14. Second Reading of the 2025 Fire Code and California Wildland Urban Interface Code Staff report and PowerPoint presentation provided by Fire Marshall Doug Strosnider.

Fire Chief Bernard Molloy, Development Services Director David Chantarangsu, and Building Official Andy Krogh were available to answer questions from the City Council.

The public hearing was opened at 7:22 p.m.

Public Testimony: None

The public hearing was closed at 7:22 p.m.

Action: After discussion, it was moved by Mayor Pro Tem Levell, seconded by Council Member DeForest, to conduct the second reading and adopt Ordinance No. 626-25 entitled: Ordinance No. 626-25 entitled: An Ordinance of the City Council of the City of Murrieta, California, Adopting the California Fire Code, 2025 Edition, Based on the 2024 International Fire Code Including Local Amendments and Additions; and Conduct the second reading and approve Ordinance No. 627 25 entitled: An Ordinance of the City Council, Adopting the 2025 California Wildland Urban Interface Code, Based on the 2024 International Wildland Urban Interface Code, Including Local Amendments and Additions.

The motion carried by the following vote:

Ayes: DeForest, Stone, Levell, Warren
Noes: None

Absent: Holliday

18 Meeting Minutes
City Council November 18, 2025

NOTIFICATIONS
City Clerk Cristal McDonald announced the following notification:

Notice of Pending Approval of Final Parcel Map - PM 38310 RECONSIDERATION None
COUNCIL MEMBER REQUESTS TO ADD ITEMS TO FUTURE AGENDAS None ADJOURNMENT 7:24 p.m.

In Memoriam of Bob Brinks

___________________________________
Cristal McDonald, City Clerk
19 CITY OF MURRIETA
City Council Meeting Agenda
Report
12/2/2025
Agenda Item No. 3.

TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Diego Chavez, Administrative Services Director
PREPARED BY: Jakkie Arellano, Management Analyst - Administrative Services SUBJECT:

First Amendment to the Agreement with Governmentjobs.com, Inc. dba NEOGOV

RECOMMENDATION
Approve the first amendment to the agreement with Governmentjobs.com, Inc. dba NEOGOV to add the Learn module for Fiscal Year 2025/26, and 2026/27 in the amount not to exceed $45,457.83.

PRIOR ACTION/VOTE
On September 21, 2021, the City Council adopted a resolution entering into an agreement withGovernmentJobs.com, Inc. (dba NEOGOV) for Insight enterprise, governmentjobs.com, Perform, and Onboard subscriptions (Vote: 5-0).

On May 17, 2022, the City Council approved an updated agreement to add the eForms module to the suite of services provided by NEOGOV (Vote: 5-0).

On August 20, 2024, the City Council approved a three-year agreement with Governementjobs.com for the Human Resources Management System Subscriptions in the amount not to exceed $179,313.70 (Vote: 5-0).

CITY COUNCIL GOAL
Maintain a high performing organization that values fiscal sustainability, transparency, accountability and organizational efficiency.

DISCUSSION
The City of Murrieta (City) utilizes the NEOGOV Human Resources Management System (HRMS), which includes subscription services to GovernmentJobs.com, as well as the Insight, Perform, Onboard, and Forms modules. GovernmentJobs.com is an online recruiting system dedicated to advertising public sector employment opportunities. The Insight module is an applicant-tracking solution that automates the hiring process and ensures compliance with relevant requirements. The Perform module allows supervisors to provide ongoing feedback to employees and document performance evaluations. The Onboard module streamlines the new hire Onboarding process with electronic paperwork capabilities, policy deployment, and training. The eForms module enables HR staff to be more efficient and empowers employees to self-initiate processes and track status to completion. The City now desires to add the Learn module, an integrated learning and training management system.

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Agenda Item No. 3.

The City currently uses the standalone Vector Solutions system for assigning and tracking employee training.

The use of Vector Solutions creates duplicate work for staff to enter employees into an additional system.

Each employee’straining assignments are assigned on a per-person basis, and the training system does not connect to NEOGOV. As a result, employees and supervisors must log in to a separate system (with a different account) to view or manage training activities. The proposed Learn module will eliminate these shortfalls. Learn allows staff to group training assignments by class specifications, automatically assigns training during onboarding, and stores training completions in online personnel files for easy access. Learn effortlessly manages, tracks, and reports all in-service, online, and third-party training using a single system.

FISCAL IMPACT
The total fiscal impact is $17,215.98 for FY 2025/26 and $28,241.85 for FY 2026/27, for a combined amount not to exceed $45,457.83. Funding for the Learn module was included in the FY 2025/26 and 2026/27 Adopted Operating Budget, and sufficient funds are available in the Information Technology Fund budget (7268340-62160).

ATTACHMENTS

1. Amendment 1 - NEOGOV Order Form
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23 CITY OF MURRIETA
City Council Meeting Agenda
Report
12/2/2025
Agenda Item No. 4.

TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Justin Clifton, City Manager
PREPARED BY: Tiffany Israel, City Attorney
SUBJECT:

Consider Participation as Amicus Curiae in the Request for the California Supreme Court to Take the Appeal of New Commune DTLA LLC v. City of Redondo Beach in which a Developer Successfully Challenged the Use of Overlay Zones in Redondo Beach’s Certified Housing Element

RECOMMENDATION
Authorize participation in the request that the California Supreme Court accept the appeal of the Court of Appeal’sNew Commune DTLA LLC v. City of Redondo Beach decision as an amicus curiae.

PRIOR ACTION/VOTE
None.

BACKGROUND
On October 10, 2025, the California Court of Appeal, Second Appellate District, issued its opinion in New Commune DTLA LLC v. City of Redondo Beach, reversing the trial court’s denial of a petition for writ of mandate filed by New Commune DTLA LLC (New Commune). New Commune sought to invalidate the City of Redondo Beach’s2021-2029 Housing Element, which the City adopted in October 2021 to comply with the California Housing Element Law (Gov. Code Sections 65580-65589.11).

New Commune asserted that the City’s Housing Element was deficient because it relied on a residential overlay allowing multifamily housing on parcels zoned for commercial and industrial uses, in violation of Government Code Section 65583.2, subdivision (h)(2). Specifically, New Commune argued that since the underlying zoning still permitted exclusively commercial or industrial projects with no residential component, the overlay failed to meet the statute’sminimum density and residential-use requirements. New Commune also argued the City failed to identify sites that could realistically accommodate low-income housing as required by Government Code Section 65582, subdivision (l).

More than 250 jurisdictions in California have similarly approved overlay zoning to satisfy Regional Housing Needs Allocation (RHNA) obligations, for which methodology was approved by the California Department of Housing and Community Development (HCD).

For the 2021-2029 sixth-cycle RHNA period, Redondo Beach was required to plan for 2,490 units, including 936 very-low-, 508 low-, 490 moderate-income-, and 556 above-moderate-income units by the October 15, 2021 deadline. That city submitted its draft Housing Element to HCD in July 2021, revised it multiple times in CITY OF MURRIETA Printed on 11/26/2025Page 1 of 3
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Agenda Item No. 4.
response to HCD findings, and ultimately adopted a third amended Housing Element in July 2022.

As a strategy to meet its RHNA obligations, Redondo Beach created a “residentialoverlay”that permitted up to 55 units per acre on six commercial and industrial zones, accounting for approximately 1,470 units. Hence, a private property owner could still elect to construct a project that did not include residential uses based on the underlying zoning. In September 2022, HCD deemed Redondo Beach’sHousing Element substantially compliant and certified its Housing Element.

In June 2022, before the Redondo Beach City Council adopted its Housing Element, New Commune filed a petition for writ of mandate and complaint for declaratory relief. The trial court denied the petition and entered judgment for the city from which New Commune appealed. The Second Appellate District reversed the trial court judgment and issued an opinion which has significant implication for housing elements relying on overlay zoning. In short, the court concluded that Redondo Beach’sresidential overlay violated the Housing Element Law for two independent reasons but did not decertify the Redondo Beach Housing Element (instead, it remanded it back to the lower court).

The court agreed with New Commune and held that “[a]n overlay cannot be used to satisfy the minimum density and residential use requirements set out in section 65583.2, subdivision (h)(2) . . . where the base zoning expressly permits development that does not include housing.”The court’sanalysis of Section 65583.2 (h) endorsed the reasoning of the Fifth Appellate District’s decision in Clovis v. California Department of Housing and Community Development (2023) 90 Cal.App.5th 240. As in Clovis, the court held that Section 65583.2(h) imposes a mandatory minimum density requirement for sites identified to accommodate a jurisdiction’slower-income housing needs. In reaffirming Clovis, the court emphasized the plain meaning of “minimum”as a non-negotiable floor below which residential density capacity cannot fall. The court rejected Redondo Beach’sargument that an overlay zone satisfies this obligation by permitting development of 20 units per acre. The court held that the 20 units per acre was the minimum residential density that is required.

Since the Redondo Beach underlying commercial and industrial zones allowed projects with zero residential units, the court held that the overlay failed to ensure that the designated sites were actually available for residential development at the required minimum density of 20 units per acre. The court emphasized that compliance with the statute requires more than nominal eligibility for housing; it requires zoning that mandates residential capacity sufficient to meet RHNA obligations.

The court further reasoned that the legislative history of Assembly Bills 1397 (2017) and 1690 (2014) confirms this reading, as both measures were intended to prevent local jurisdictions from identifying sites that were only theoretically capable of accommodating affordable housing. Accordingly, the decision solidifies Clovis as controlling authority and forecloses reliance on overlay zones that fail to meet the minimum density requirements outlined in section 65583.2(h).

The court found the Redondo Beach overlay zoning violated Section 65583.2(h)(2)’smandate that requires at least 50 percent of lower-income housing sites be “designatedfor residential use and for which nonresidential uses or mixed uses are not permitted.” The court reasoned that since Redondo Beach’soverlay preserved the underlying commercial and industrial entitlements, it failed to function as a true residential designation.

The court rejected reliance on the “mixed-use exception” in Section 65583.2(h)(2), finding it inapplicable because the Redondo Beach overlay zones did not require that residential uses occupy at least 50 percent of the total floor area or allow 100 percent residential development. The court emphasized that this exception is a narrow one, designed only for circumstances where the mixed-use zoning itself guarantees a substantial and enforceable residential component. In contrast, the court found that Redondo Beach’soverlay preserved full commercial and industrial entitlements, rendering it inconsistent with the statutory scheme. However, the court did note that the “mixed-use”exception could apply in future cases where the underlying local zoning would meet the statute’s minimum residential requirements.

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Agenda Item No. 4.

Under Government Code Section 65583, subdivision (a)(3), a city’s Housing Element must include an inventory of land that is suitable and available for residential development, including both vacant sites and those with a realistic potential for redevelopment during the planning period to meet housing needs across income levels. When a city relies on nonvacant (developed) sites to meet more than half of its lower-income housing obligation, it must provide substantial evidence that existing uses will not impede the development of low-income housing and are likely to be discontinued during the planning period. Redondo Beach sought to meet over 50 percent of its 1,444-unit lower-income RHNA through nonvacant sites, identifying 194 potential units on vacant parcels and relying primarily on two developed properties for the remainder.

Finally, the court rejected the argument that HCD’sprior approval of the Housing Element insulated Redondo Beach from judicial review.

The court’sreaffirmation of Clovis solidifies the principle that overlay zones cannot substitute for base zoning that allows nonresidential development. Merely permitting housing within an overlay does not satisfy the law unless residential use is required and the zoning guarantees development at or above statutory density thresholds, requiring cities to rezone to eliminate commercial and/or industrial zones to residential.

In addition, the opinion reinforces that local governments cannot rely solely on HCD certification to insulate themselves from legal challenge. Even HCD-approved Housing Elements remain subject to judicial review, and cities bear the ultimate responsibility for ensuring their zoning regulations and site inventories comply with statutory mandates. Courts will scrutinize whether each designated site has a realistic and demonstrable potential for redevelopment within the planning period.

The City of Redondo Beach will petition the California Supreme Court for review (which is discretionary with the Supreme Court). Staff seeks authorization from the City Council to participate in the case as amicus curiae (often referred to as a “friend of the court” brief supporting the position of one of the parties) to advocate for clarity and flexibility in the application of Government Code Section 65583.2 to overlay zoning strategies. Staff believes this appeal is necessary to try to protect local control and zoning flexibility. Overlay zones allow cities to “count”sites towards housing needs without fully rezoning the underlying land, which would result in cities losing the economic uses that could be developed on the land.

At this time, it is not advised to amend the Housing Element. Staff and the City Attorney’soffice will continue to monitor the appeal and HCD’s reaction to the Appellate Court’s opinion.

FISCAL IMPACT
There is no cost to the City to join this effort.

ATTACHMENTS
None.

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26 CITY OF MURRIETA
City Council Meeting Agenda
Report
12/2/2025
Agenda Item No. 5.

TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Brian Crawford, Municipal Services Director
PREPARED BY: Brian Crawford, Municipal Services Director SUBJECT:

Award a Construction Contract for Alderwood Park Pickleball Courts Project

RECOMMENDATION
Amend the Fiscal Year 2025/26 Capital Improvement Plan budget to appropriate $175,000 for Capital Improvement Project No. 22042;
Approve the use of the General Fund unassigned funds in the amount of $175,000; Award the construction contract for the Alderwood Pickleball Courts Project, Capital Improvement Project 22042, to the lowest responsible bidder, Micon Construction, Inc., in the amount of $307,628.60, plus a 15% contingency; and
Authorize the Mayor to execute the agreement.

PRIOR ACTION/VOTE
On June 3, 2025, the City Council approved the Capital Improvement Plan for Fiscal Years 2025/26 to 2029/30 (Vote: 5-0).

CITY COUNCIL GOAL
Coordinate and deliver responsive, effective community services.

DISCUSSION
The popularity of pickleball has continued to grow rapidly within the City of Murrieta (City), increasing the demand for public court facilities. Currently, there are a total of four (4) pickleball courts in the City. B Street Station Park, adjacent to the Senior Center, has two (2) courts, and Alderwood Park, on Baxter Road, has two (2) dedicated pickleball courts. These existing courts frequently experience capacity constraints and extended wait times, indicating that the current number of courts is insufficient to meet the community's recreational needs for this sport.

Staff evaluated the feasibility of constructing additional pickleball courts at several park sites in the City.

Alderwood Park was selected because it has existing restrooms, parking, and sufficient space and topography to accommodate three (3) additional courts. The pickleball player community also expressed interest in having more courts at a single location, since pickleball is a social sport.

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Agenda Item No. 5.

Improvements for the project include the construction of a concrete slab, specialized court coatings, court dividers, 10-foot perimeter fencing with screening, walkways, and stormwater treatment measures.

A competitive bid opportunity for this project was published to PlanetBids on October 8, 2025, and publicly advertised in a regional newspaper on October 13, 2025, and again on October 23, 2025. The City received thirteen (13) bids before the deadline of 2 p.m. on November 3, 2025, as follows:

Contractor Total Bid
Micon Construction, Inc $307,628.60
Bogh Construction LLC $312,865.31
Camp Constructors, Inc $316,794.00
Ace Capital Engineering $396,369.34
Van Engineering, Inc $414,281.80
Act 1 Construction $425,202.75
DEARK E&C, Inc $446,031.00
Roadway Engineering & Construction Corp $453,309.95
Pub Construction, Inc $470,636.65
Voltaire Engineering $481,195.00
Malek Engineering and Construction $485,202.50
Asad Holdings LLC $499,477.50
Gentry General Engineering, Inc $518,157.00
The total bid amount was the basis for awarding the project. The bids were reviewed, and the item prices were found to be consistent with today's construction market rates.

Staff recommends that the contract be awarded to the lowest responsible bidder, Micon Construction, Inc., in the amount of $307,628.60, plus a fifteen percent (15%) contingency of $46,144.29. No bid protests were received for the project.

Additionally, the project includes approximately $70,000 in soft costs for construction management, labor compliance, geotechnical support, landscape inspection, and signage.

Construction of the new pickleball courts is expected to be complete by May 2026.

FISCAL IMPACT
The total fiscal impact for the construction contract is $307,628.60, plus a fifteen percent (15%) contingency of $46,144.29. The estimated soft costs for this project are $70,000.

The estimated total cost of the Pickleball Courts Project-including design, construction, and soft costs-is approximately $575,000. The City Council previously approved this project with a budget of $400,000, funded by the General Fund and Measure T Fund Unassigned Fund Balance.

Therefore, staff recommends amending the Fiscal Year 2025/26 Capital Improvement Plan budget to appropriate an additional $175,000, for Capital Improvement Project No. 22042.

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Agenda Item No. 5.

ATTACHMENTS

1. Construction Contract & Proposal, Micon Construction CITY OF MURRIETA Printed on 11/26/2025Page 3 of 3
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29 For City Clerk Use Only

Contract No._________

PUBLIC WORKS CONSTRUCTION CONTRACT
WITH THE CITY OF MURRIETA (“CITY”)
FORMAL BIDDING OVER $220,000
Project Name/Description (“Project”): ALDERWOOD PICKLEBALL COURTS (PROJECT NO. 24-487)
Contractor Name (“Contractor”): Micon Construction, Inc.

Contractor Business Type: Corporation
Contractor Address: 1616 Sierra Madre Circle, Placentia, CA 92870 Contractor Representative Name and Title (“Contractor Representative”): Kimberly Racette Contractor Representative Work Phone: 800-949-0203
Contractor Representative Email: [email protected] Contract Days: Fifty (50) Working Days
Liquidated Damages Sum (per day): $500
Termination Date: June 30, 2026
Total Not-To-Exceed Contract Amount (“Contract Sum”): $307,628.60 plus a 15% ($46,144.29) Construction Contingency
City Department Contact (“Project Manager”): Brian Crawford Department Contact Work Phone: 951-461-6047
Department Contact Email: [email protected]
Is Federal Funding Being Used to Fund Any Part of The Project (Yes/No): No

30 RECITALS
The City desires to contract with a Contractor to provide services as more further set forth herein.

The City circulated a Notice Inviting Bids for the above-described services.

Contractor submitted a bid and was determined to be the lowest responsible bidder.

Click or tap here to enter text.

31 This Contract, made and entered into effective on the date executed by the City, by and between the City of Murrieta, a municipal corporation, hereinafter referred to as " City," and the above- referenced Contractor.

The City and Contractor, for the consideration hereinafter named, mutually agree as follows:

1. SCOPE OF WORK.

1.1 The Contractor shall perform all of the work, furnish all labor, materials, equipment, tools, utility services, and transportation, and comply with all of the specifications and requirements in the Bid Documents for the above entitled Project. All such wor k shall be performed in a good and workmanlike manner, as reasonably determined by the City, and shall be performed in compliance with all local, state, and federal laws and regulations. As used herein, “Bid Documents” refers to all of the documents included in the solicitation of bids for the Project, including but not limited to, the Invitation for Bids, Instructions to Bidders, Bid or Bid Proposal, Contract Documents, Special Provisions, Technical Provisions, Construction Plans, Standard Plans, Drawings, Reference Specifications, all applicable permit requirements, any addenda, any applicable Project Labor Agreement, and any other documents included, referenced, or incorporated therein. The Bid Documents are incorporated into this Contract and made part hereof.

In the event of any conflict between the terms of the Bid Documents and this Contract, the terms of this Contract shall govern.

2. CONTRACT DOCUMENTS.

2.1 The provisions of the 2024 Edition of the Standard Specifications for Public Works Construction, as updated by errata, (“Greenbook”) are incorporated herein, except as explicitly modified by the Bid Documents or further herein. In the event of any conflict between the provisions of the Greenbook and this Contract, the terms of this Contract and the Exhibits attached hereto shall govern.

2.2 Copies of the Standard Specifications for Public Works Construction are available from the publisher:

Building News, Inc. (BNi)
990 Park Center Drive, Suite E Vista, CA 92081
(760) 734-1113
www.bnibooks.com

2.3 The aforementioned Standard Specifications will control the General Provisions, construction materials, and construction methods for this Contract except as amended by the Plans and Specifications of this Contract.

2.4 Where the Plans or Specifications describe portions of the work in general terms, but not in complete detail, it is understood that the item is to be furnished and installed completed and in place and that only the best general practice is to be used.

32 2.5 Unless otherwise specified, Contractor shall furnish all labor, materials, tools, equipment, and incidentals, and do all the work involved in executing the Contract.

2.6 The Contract Documents include this Contract, the Bid Documents, the Standard Specifications, any and all Exhibits thereto, all design documents, and contract change orders and all bonds and insurance documents. The Contract Documents are complementary, and what is called for by any one document shall be as binding as if called for by all. Any conflict between this Contract and any other Contract Document shall be resolved in favor of this Contract with the exception that any later amendments hereto or chan ge orders shall take precedence over this Contract.

3. CITY APPROVAL.

3.1 All labor, materials, tools, equipment, and services shall be furnished and work performed and completed under the direction and supervision and subject to the approval of City or its authorized representatives.

4. LICENSES, PERMITS FEES AND ASSESSMENTS

4.1 Contractor shall obtain at its sole cost and expense such licenses, permits, registrations, and approvals as may be required by law for the performance of the services required by this Contract. Contractor shall have the sole obligation to pay for any fees, assessments and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for the Contractor’s performance of the services required by this Contract, and shall indemnify, defend and hold harmless City, its officers, employees or agents of City, against any such fees, assessments, taxes, penalties or interest levied, assessed or imposed against City hereunder.

5. CONTRACT AMOUNT AND SCHEDULE.

5.1 City agrees to pay and Contractor agrees to receive and accept the prices set forth in the ir bid as full compensation for furnishing all materials, performing all work, and fulfilling all obligations hereunder. Said compensation shall cover all expenses, losses, damages, and consequences arising out of the nature of the work during its progress or prior to its acceptance, including those for well and faithfully completing the work and the whole thereof in the manner and time specified in the aforesaid contr act documents and also including those arising from actions of the elements, unforeseen difficulties or obstructions encountered in the prosecution of the work, suspension or discontinuance of the work, and all other unknowns or risks of any description connected with the work. The total of all payments made to Contractor shall not exceed the Contract Sum set forth above.

5.2 Contractor agrees to complete the work on the Project in a period not to exceed the Contract Days set forth above , commencing upon the date stated in the Notice to Proceed issued by City. Construction shall not commence until bonds and insurance are approved by City. Contract Days shall be computed as calendar days and not as working or business days.

Time is of the essence. If the work is not completed within said time period, liquidated damages shall apply. The term of this Agreement shall expire one (1) year following City’s acceptance of the Project.
33 6. PAYMENT AND INVOICING.

6.1 All invoices shall include a copy of Contractor’s Certified Payroll and proof that Certified Payroll has been submitted to the DIR. Contractor shall also submit a list of the prevailing wage rates (including federal prevailing wage rates, if applicable) for all employees and subcontractors providing services under this Contract, as applicable, with Contractor’s first invoice. If these rates change at any time during the term of the Contract, Contractor shall submit a new list of rates to the City with its f irst invoice following the effective date of the rate change.

Additionally, Contractor shall submit the following information with each monthly invoice: (1) an updated Project schedule reflecting all work completed and the percentage completion of all scheduled work; (2) the number of units completed for any work being performed on a unit price basis; (3) a report documenting all issues, concerns, and delays the Contractor’s method of addressing said concerns; (4) in the event Contractor is not meeting the approved Project schedule, a resource-loaded recovery schedule demonstrating how Contractor will meet the approved Project schedule; (5) a list of all deliverables in process and the status of each deliverable; (6) a list of any pending requests for information or clarification and change orders and the status of each item on the list; and (7) a log of all pending corrective work and/or warranty items identified by either Party and the status of such work and/or warranty items.

6.2 Payment.
a. Payments Made by City. City shall independently review each invoice submitted by the Contractor to determine whether the work performed and expenses incurred are in compliance with the provisions of this Contract. Except as to any charges for work performed or expenses incurred by Contractor which are disputed by City, City will cause Contractor to be paid any progress payment within thirty (30) days of receipt of Contractor’s correct and undisputed invoice; however, Contractor acknowledges and agrees that due to City warrant run procedures, the City cannot guarantee that payment will occur within this time period.

In the event that City does not cause Contractor to be paid any progress payment within thirty (30) days of receipt of an undisputed and properly submitted invoice and provided the Project is for construction, Contractor shall be entitled to the payment of interest to the extent allowed under Public Contract Code § 20104.50. In the event any charges or expenses are disputed by City, the original invoice shall be returned by City to Contractor, not later than seven (7) days after receipt by the City, for correction and resubmission. Returned invoices shall be accompanied by a document setting forth in writing the reasons why the payment request was r ejected. Review and payment by the City of any invoice provided by the Contractor shall not constitute a waiver of any rights or remedies provided herein or any applicable law.

6.3 Payments Made by Contractor to Subcontractors. In accordance with § 7108.5 of the California Business and Professions Code, Contractor shall remit payments owed to subcontractors within seven (7) calendar days after receiving payments by City if payments a re owed by Contractor to any subcontractor, unless otherwise agreed to in the applicable subcontract between Contractor and Subcontractor or unless otherwise authorized by California law, but in no event less than fifteen (15) calendar days for any Subcont ractor qualifying as a small business enterprise, and within thirty (30) calendar days if payments are owed by Contractor to any Subcontractor other than a small business enterprise.
34 6.4 Retention. Pursuant to § 9203 of the Public Contract Code, City will deduct a five percent (5%) retention from all progress payments, which shall be released to Contractor no later than sixty (60) days from completion of the work in accordance with § 7107 of the Public Contract Code. In the event of a dispute between City and Contractor, City may withhold from the final payment an amount not to exceed one hundred fifty percent (150%) of the disputed amount.

6.5 Waiver. Payment to Contractor for work performed pursuant to this Agreement shall not be deemed to waive any defects in work performed by Contractor.

7. ADDITIONAL WORK AND CHANGE ORDERS.

7.1 City shall have the right at any time during the performance of the services, without invalidating this Contract, to order extra work beyond that specified in the Scope of Work or make changes by altering, adding to or deducting from said work. No such extra work may be undertaken unless a written change order is first given by the City to the Contractor, incorporating therein any adjustment in (i) the Contract Sum, and/or (ii) the time to perform this Contract, which said adjustments are subject to the wri tten approval of the Contractor (“Change Order”). All Change Orders must be signed by the Contractor and City prior to commencing the extra work thereunder.

7.2 Any increase in compensation of up to the amount of contingency approved by the City Council at the time the Project was awarded to Contractor plus any additional subsequent contingency approved by the City Council, if any, taken either separately or cumulatively, or any increase in the time to perform of up to one hundred eighty (180) days and which are not detrimental to the Work or to the interest of the City, may be approved by the City Manager. Any greater increases, taken either separately or cumulatively, must be approved by the City Council.

7.3 Any adjustment in the Contract Sum for a Change Order must be in accordance with the unit prices or rates set forth in the Contractor’s Bid. If the rates in the Contractor’s Bid do not cover the type of work in the Change Order, the cost of such work shall not exceed an amount agreed upon in writing and signed by Contractor and City. If the cost of the Change Order cannot be agreed upon, the City will pay for actual work of the Change Order completed, to the satisfaction of the City, as follows:
a. Labor: The cost of labor shall be the actual cost for wages of workers and subcontractors performing the work for the Change Order at the time such work is performed. The use of labor classifications that would increase the cost of such work shall not be permitted. For purposes of this Section, wages shall include total compensation, including fringe benefits. For work that is self-performed by the Contractor, a markup not to exceed fifteen percent (15%) of the actual cost of labor for that portion of work is allowable. For work performed by a Subcontractor, a markup of fifteen percent (15%) of the actual cost of labor for work performed by the Subcontractor’s own forces is allowable, plus two and one-half percent (2.5%) thereon for Contractor markup regardless of which tier of Subcontractor actually performed the work. b. Materials and Equipment: The cost of materials and equipment shall be the actual cost to Contractor or the lowest current price which such materials and equipment 35 are reasonably available at the time the work is performed, whichever is lower. For purposes of this Section, Contractor may include a markup on the cost of materials and equipment of not more than fifteen percent (15%). Material re-stocking charges shall be limited to five percent (5%) and Contractor must provide evidence of any related charges from the supplier. For rental equipment, City will not pay Contractor for the use of tools and equipment that have a replacement value of $750 or less.
c. If the cost of the extra work cannot be agreed upon, the Contractor must provide a daily report that includes invoices for labor, materials and equipment costs for the work performed under the Change Order. The daily report must include: list of names of workers, classifications, and hours worked; description and list of quantities of materials used; type of equipment, size, identification number, and hours of operation, including loading and transportation, if applicable; description of other City authorized services and expenditures in such detail as the City may require. Failure to submit a daily report by the close of the next working day may, at the City’s sole and absolute discretion, waive the Contractor’s rights for that day.

7.4 It is expressly understood by Contractor that the provisions of this Section shall not apply to services specifically set forth in the Scope of Work. Contractor hereby acknowledges that it accepts the risk that the services to be provided pursuant to the Scope of Work may be more costly or time consuming than Contractor anticipates and that Contractor shall not be entitled to additional compensation therefor. City may in its sole and absolute discretion have similar work done by other contractors.

7.5 No claim for an increase in the Contract Sum or time for performance shall be valid unless the procedures established in this Section are followed.

7.6 Additional work shall not include work performed by any of the following:
a. Superintendent(s).
b. Assistant Superintendent(s).
c. Project Engineer(s).
d. Project Manager(s).
e. Scheduler(s).
f. Estimator(s)
g. Drafting or detailing
h. Small tools (with a replacement value under $500)
i. Home or field office expenses, including staff, materials, and supplies.
j. Trailer or storage rental and expenses, whether on the Site or off the Site.
36 k. Data processing personnel and equipment
l. Site fencing
m. Utilities, including, without limitation, gas, electric, sewer, water, telephones.
n. Telephone, facsimile, e-mail and copier.
o. Overhead, administrative, or general expenses of any kind. p. Loss of efficiency or productivity, or other impact costs caused by the effects of the Additional Work on the performance of other work or the work of other trades on the Project.
q. Capital expenses, including interest on capital employed in connection with Additional Work.
r. Legal costs.
s. Federal, State, or local income and franchise taxes. t. Profit.

7.7 The term “markup” shall be defined as including the full amount of compensation and expenses including overhead and profit not included in the actual allowable costs. For all Change Orders, unless a lump sum amount is approved by the City, Contractor shall submit an itemized breakdown of the Change Order costs with all markups clearly identified.

7.8 City may also, with or without cause, issue deductive Change Orders reducing or removing any portion of the Scope of Work, upon provision of notice to Contractor.

In the event the City desires to issue a deductive Change Order. Any adjustment in the Contra ct sum for a deductive Change Order shall be calculated in the same manner as a Change Order for Additional Work as set forth in this Section.

8. PAYMENTS/ACCEPTANCE OF WORK.

8.1 Any conflicting language in the Standard Specifications relating to payments and acceptance of work is hereby replaced with the following:
a. The closure date for the purpose of making partial progress payments will be the last day of each month. Contractor shall prepare the approximate measurement of the work performed through the closure date and submit it to City for approval by the tenth (10th) day of the following month. Payments will be withheld pending receipt of any outstanding reports required by the Contract Documents. A full five percent (5%) retention will be deducted from all progress payments. Partial p ayments on the Contract price shall not be considered as an acceptance of any part of the work.
37 b. Upon completion of the work, Contractor shall so notify the Project Manager, in writing, submit satisfactory evidence of payment for equipment, materials and labor, and submit the "Contractor’s Affidavit." Upon receipt of the notification, the Project Manager shall promptly, by personal inspection, determine the actual status of the work in accordance with the terms of the Contract. If he finds materials, equipment, or workmanship that do not meet the terms of the Contract, he shall prepare a preliminary punch list of such items and submit it to Contractor.

Final determination of acceptability shall be made by City. Upon acceptance of the work, City shall file a Notice of Completion. The conditions of the guarantee shall commence on the date that City files a Notice of Completion. City shall make final payment to Contractor in the manner provided by law following the expiration of thirty -five (35) days after filing the Notice of Completion.
c. The final payment shall include the entire sum found to be due hereunder after deducting all previous payments and such other lawful amounts as the terms of this Contract describe.

9. LIQUIDATED DAMAGES; EXTENSION OF TIME.

9.1 In accordance with Government Code Section 53069.85, Contractor agrees to forfeit and pay to City the Liquidated Damages Sum set forth above per day for each calendar day completion is delayed beyond the time allowed pursuant to Section 5 of this Contract. Such sum shall be deducted from any payments due to or to become due to Contractor.

9.2 The time period(s) specified for performance of the services rendered pursuant to this Contract shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of the Contractor, including, but not restricted to, acts of God or of the public enemy, unusually severe weather, fires, earthquake s, floods, epidemics, quarantine restrictions, riots, strikes, freight embargoes, wars, litigation, and/or acts of any governmental agency, including the City, i f the Contractor shall within ten (10) days of the commencement of such delay notify the Project Manager in writing of the causes of the delay. The Project Manager shall ascertain the facts and the extent of delay, and extend the time for performing the services for the period of the enforced delay when and if in the judgment of the Project Manager such delay is justified. The Project Manager’s determination shall be final and conclusive upon the Parties to this Agreement. In no event shall Contractor be entitled to recover damages against the City for any delay in the performance of this Agreement, however caused, Contractor’s sole remedy being extension of the Agreement pursuant to this Section.

10. WAIVER OF CLAIMS.

10.1 Unless a shorter time is specified elsewhere in this Contract, on or before making final request for payment, Contractor shall submit to City, in writing, all claims for compensation under or arising out of this Contract; the acceptance by Contractor of the final payment shall constitute a waiver of all claims against City under or arising out of this Contract except those previously made in writing and request for payment. Contractor shall be required to execute an affidavit, release, and indemnify agreement with each claim for payment.

11. PREVAILING WAGES.
38 11.1 Public Work. The Parties acknowledge that the work to be performed under this Contract is a “public work” as defined in Labor Code § 1720 and that this Contract is therefore subject to the requirements of Division 2, Part 7, Chapter 1 (commencing with § 1720) of the California Labor Code relating to public works contracts and the rules and regulations established by the Department of Industrial Relations (“DIR”) implementing such statutes. The work performed under this Contract is subject to compliance moni toring and enforcement by the DIR.

Contractor shall post job site notices, as prescribed by regulation.

11.2 Registration with DIR. Pursuant to Labor Code § 1771.1, Contractor and all subcontractors must be registered with, and pay an annual fee to, the DIR prior to and during the performance of any work under this Contract.

11.3 Prevailing Wages. Contractor shall pay prevailing wages to the extent required by Labor Code § 1771. Pursuant to Labor Code § 1773.2, copies of the prevailing rate of per diem wages are on file at City Hall and will be made available to any interested part y on request. By initiating any work under this Contract, Contractor acknowledges receipt of a copy of the DIR determination of the prevailing rate of per diem wages, and Contractor shall post a copy of the same at each job site where work is performed under this Contract. If this Contract is subject to the payment of federal prevailing wages under the Davis-Bacon Act (40 U.S.C. § 3141 et seq.), then Contractor shall pay the higher of either the state or federal prevailing wage applicable to each person employed on the Project.

11.4 Penalty for Failure to Pay Prevailing Wages. Contractor shall comply with and be bound by the provisions of Labor Code §§ 1774 and 1775 concerning the payment of prevailing rates of wages to workers and the penalties for failure to pay prevailing wages. Th e Contractor shall, as a penalty to the City, forfeit two hundred dollars ($200) for each calendar day, or portion thereof, for each worker paid less than the prevailing rates as determined by the DIR for the work or craft in which the worker is employed f or any public work done pursuant to this Contract by Contractor or by any subcontractor.

11.5 Payroll Records. Contractor shall comply with and be bound by the provisions of Labor Code § 1776, which requires Contractor and each subcontractor to: keep accurate payroll records and verify such records in writing under penalty of perjury, as specified in § 1776; certify and make such payroll records available for inspection as provided by § 1776; and inform the City of the location of the records.

11.6 Apprentices. Contractor shall comply with and be bound by the provisions of Labor Code §§ 1777.5, 1777.6, and 1777.7 and California Code of Regulations Title 8, §§ 200, et seq. concerning the employment of apprentices on public works projects. Contractor s hall be responsible for compliance with these aforementioned sections for all apprenticeable occupations.

Prior to commencing work under this Contract, Contractor shall provide City with a copy of the information submitted to any applicable apprenticeship program. Within sixty (60) days after concluding work pursuant to this Contract, Contractor and each of its subcontractors shall submit to the City a verified statement of the journeyman and apprentice hours performed under this Contract.

11.7 Eight-Hour Work Day. Contractor acknowledges that eight (8) hours labor constitutes a legal day’s work. Contractor shall comply with and be bound by Labor Code § 1810. 39 1.1 Penalties for Excess Hours. Contractor shall comply with and be bound by the provisions of Labor Code § 1813 concerning penalties for workers who work excess hours.

The Contractor shall, as a penalty to the City, forfeit twenty -five dollars ($25) for each worker employed in the performance of this Contract by the Contractor or by any subcontractor for each calendar day during which such worker is required or permitted to work more than eight (8) hours in any one calendar day and forty (40) hours in any one calendar week in violation of the provisions of Division 2, Part 7, Chapter 1, Article 3 of the Labor Code. Pursuant to Labor Code § 1815, work performed by employees of Contractor in excess of eight (8) hours per day, and forty (40) hours during any one week shall be permitted upon public work upon compensation for all hours worked in excess of 8 hours per day at not less than one and one-half (1½) times the basic rate of pay.

11.8 Contractor’s Responsibility for Subcontractors. For every subcontractor who will perform work under this Contract, Contractor shall be responsible for such subcontractor’s compliance with Division 2, Part 7, Chapter 1 (commencing with § 1720) of the California Labor Code, and shall make such compliance a requirement in any contract with any subcontractor for work und er this Contract. Contractor shall be required to take all actions necessary to enforce such contractual provisions and ensure subcontractor’s compliance, including without limitation, conducting a review of the certified payroll records of the subcontractor on a periodic basis or upon becoming aware of the failure of the subcontractor to pay his or her workers the specified prevailing rate of wages. Contractor shall diligently take corrective action to halt or rectify any such failure by any subcontractor.

12. WORKERS' COMPENSATION LIABILITY INSURANCE.

12.1 California Labor Code §§ 1860 and 3700 provide that every employer will be required to secure the payment of compensation to its employees if it has employees.

12.2 In accordance with the provisions of California Labor Code § 1861, Contractor certifies as follows:
“I am aware of the provisions of § 3700 of the Labor Code 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 prov isions before commencing the performance of the work of this contract.”

13. INDEMNIFICATION.

13.1 All work covered by this Contract done at the site of construction or in preparing or delivering materials to the site shall be at the risk of Contractor alone.

13.2 Contractor shall indemnify, defend with legal counsel approved by City, and hold harmless City, its officers, officials, employees and volunteers (each, an “Indemnitee”) from and against all liability, loss, damage, expense, cost (including without limitation reasonable legal counsel fees, expert fees and all other costs and fees of litigation) of every nature arising out of or in connection with Contractor's performance of work under this Contract or its failure to comply with any of its obligations contained in this Contract, except such loss or damage which is caused by the sole or active negligence or willful misconduct of the City. Should conflict of interest principles preclude a single legal counsel from representing both City and Contractor, or should 40 City otherwise find Contractor’s legal counsel unacceptable, then Contractor shall reimburse the City its costs of defense, including without limitation reasonable legal counsels’ fees, expert fees and all other costs and fees of litigation. The Contractor shall promptly pay any final judgment rendered against the City (and its officers, officials, employees and volunteers) with respect to claims determined by a trier of fact to have been the result of the Contractor’s negligent, reckless or wrongful performance. It is expressly understood and agreed that the foregoing provisions are intended to be as broad and inclusive as is permitted by the law of the State of California and will survive termination of this Contract.

13.3 Contractor obligations under this Section apply regardless of whether or not such claim, charge, damage, demand, action, proceeding, loss, stop notice, cost, expense, judgment, civil fine or penalty, or liability was caused in part or contributed to by an Indemnitee.

However, without affecting the rights of City under any provision of this Contract, Contractor shall not be required to indemnify and hold harmless City for liability attributable to the active negligence of City, provided such active negligenc e is determined by agreement between the parties or by the findings of a court of competent jurisdiction. In instances where City is shown to have been actively negligent and where City’s active negligence accounts for only a percentage of the liability involved, the obligation of Contractor will be for that entire portion or percentage of liability not attributable to the active negligence of City.

13.4 City shall timely notify Contractor of the receipt of any third -party claim relating to the work under this Agreement. City shall be entitled to recover from Contractor its reasonable costs incurred in providing such notification.

14. INSURANCE.

14.1 Without limiting Contractor’s indemnification of City, and prior to commencement of any services under this Contract, Contractor shall obtain, provide and maintain at its own expense during the term of this Contract, policies of insurance of the type and amounts described in Exhibit “B” attached hereto and incorporated herein.

15. CONTRACTOR'S INDEPENDENT INVESTIGATION.

15.1 No plea of ignorance of conditions that exist or that may hereafter exist or of conditions of difficulties that may be encountered in the execution of the work under this Contract, as a result of failure to make the necessary independent examinations and investigations, and no plea of reliance on initial investigations or reports prepared by City for purposes of letting this Contract out to bid will be accepted as an excuse for any failure or omission on the part of Contractor to fulfill in every detail all requirements of this Contract. Nor will such reasons be accepted as a basis for any claims whatsoever for extra compensation or for an extension of time.

15.2 By executing this Contract, Contractor warrants that Contractor (i) has thoroughly investigated and considered the scope of work to be performed, (ii) has carefully considered how the services should be performed, and (iii) fully understands the facilities, difficulties and restric tions attending performance of the services under this Contract. If the services involve work upon any site, Contractor warrants that Contractor has investigated the site and is or will be fully acquainted with the conditions ther e existing, prior to commencement of services hereunder.
41 16. WARRANTY.

16.1 Contractor warrants all work under the Contract (which for purposes of this Section shall be deemed to include unauthorized work which has not been removed and any non conforming materials incorporated into the work) to be of good quality and free from any defective or faulty material and workmanship. Contractor agrees that for a period of one year (or the period of time specified elsewhere in the Contract or in any guarantee or warranty provided by any manufacturer or supplier of equipment or materials incorporated into the work, whichever is later) after the date of final acceptance, Contractor shall within ten (10) days after being notified in writing by the City of any defect in the work or non conformance of the work to the Contract, commence and prosecute with due diligence all work necessary to fulfill the terms of the warranty at its sole cost and expense. Contractor shall act as soon as requested by the City in response to an emergency. In addition, Contractor shall, at its sole cost and expense, repair, remove and replace any portions of the work (or work of other contractors) damaged by its defective work or which becomes damaged in the course of repairing or replacing defective work. For any work so corrected, Contractor’s obligation hereunder to c orrect defective work shall be reinstated for an additional one year period, commencing with the date of acceptance of such corrected work.

Contractor shall perform such tests as the City may require to verify that any corrective actions, including, without limitation, redesign, repairs, and replacements comply with the requirements of the Contract. All costs associated with such corrective actions and testing, including the removal, replacement, and reinstitution of equipment and materials necessary to gain access, shall be the sole responsibility of the Contractor. All warranties and guarantees of subcontractors, suppliers and manufacturers with respect to any portion of the work, whether express or implied, are deemed to be obtained by Contractor for the benefit of the City, regardless of whether or not such warranties and guarantees have been transferred or assigned to the City by separate agreement and Contractor agrees to enforce such warranties and guarantees, if necessary, on behalf of the City.

In the event that Contractor fails to perform its obligations under this Section, or under any other warranty or guaranty under this Contract, to the reasonable satisfaction of the City, the City shall have the right to correct and replace any defective or non conforming work and any work damaged by such work or the replacement or correction thereof at Contractor’s sole expense. Contractor shall be obligated to fully reimburse the City for any expenses incurred hereunder upon demand.

17. CONFLICT OF INTEREST.

17.1 Contractor covenants that neither it, nor any officer or principal of its firm, has or shall acquire any interest, directly or indirectly, which would conflict in any manner with the interests of City or which would in any way hinder Contractor’s performance of services under this Contract. Contractor further covenants that in the performance of this Contract, no person having any such interest shall be employed by it as an officer, employee, agent or subcontractor without the express written consent of the Project Manager. Contractor agrees to at all times avoid conflicts of interest or the appearance of any conflicts of interest with the interests of City in the performance of this Contract.

17.2 No officer or employee of the City shall have any financial interest, direct or indirect, in this Contract nor shall any such officer or employee participate in any decision relating to the Contract which affects his financial interest or the financial interest of any corporation, partnership or association in which he is, directly or indirectly, interested, in violation 42 of any State statute or regulation. The Contractor warrants that it has not paid or given and will not pay or give any third party any money or other consideration for obtaining this Contract.

17.3 Contractor warrants that they have no blood or marriage relationship, and that they are not in any way associated with any City officer or employee, or any architect, engineer, or other preparer of the Drawings and Specifications for this project. Contractor further warrants that no person in his employ has been employed by City within one (1) year of the date of Notice Inviting Bids. Contractor’s duties and services under this Contract shall not include preparing or assisting the City with any portion of the City’s preparation of a request for proposals, request for qualifications, or any other solicitation regarding a subsequent or additional contract with the City. The City shall at all times retain responsibility for public contracting, including with respect to any subsequent phase of this project. Contractor’s participation in the planning, discussions, or drawing of project plans or specifications shall be limited to conceptual, preliminary, or initial plans or specifications. Contractor shall cooperat e with the City to ensure that all bidders for a subsequent contract on any subsequent phase of this Project have access to the same information, including all conceptual, preliminary, or initial plans or specifications prepared by Contractor pursuant to this Contract.

17.4 Contractor warrants that neither it nor any of its employees, agents, or representatives has offered or given any gratuities or promises to City's employees, agents, or representatives with a view toward securing this Contract or securing favorable treatme nt with respect thereto.

18. CONTRACTOR’S AFFIDAVIT.

18.1 After completion of the work contemplated by this Contract, Contractor shall file with the City Manager his affidavit stating that all workmen and persons employed, all firms supplying materials, and all subcontractors upon the project have been paid in full, and that there are no claims outstanding against the project for either labor or materials, except certain items, if any, to be set forth in an affidavit covering disputed claims or items in connection with a Stop Notice that has been filed under the provisions of the laws of the State of California.

19. SIGNATURE OF CONTRACTOR

19.1 Corporations: The signature must contain the name of the corporation, must be signed by the President and Secretary or Assistant Secretary, and the corporate seal must be affixed. Other persons may sign for the corporation in lieu of the above if a certified copy of a resolution of the corporate board of directors so authorizing them to do so is on file in the City Clerk's office.

19.2 Partnerships: Names of all persons comprising the partnership or co - partnership must be stated. The Contract must be signed by all partners comprising the partnership unless proof in the form of a certified copy of a certificate of partnership acknowledging signer to be a general partner is presented to the City, in which case the general partner may sign.

19.3 Joint Ventures: Bids submitted as joint ventures must so state and the Contract is to be signed by each joint venturer.

43 19.4 Individuals: Bids submitted by individuals must be signed by the bidder, unless an up-to-date power of attorney is on file in the City, in which case said person may sign for the individual. The above rules also apply in the case of the use of a fictitious firm name. In addition, however, where the fictitious name is used, it must be so indicated in the signature.

20. SECURITY.

20.1 Performance and Payment Bonds. Concurrently with execution of this Agreement, Contractor shall deliver to the City all of the following bonds:
a. A performance bond securing the faithful performance of this Agreement, in an amount not less than 100% of the total compensation for this Contract. b. A payment bond, securing the payment of all persons furnishing labor and/or materials in connection with the work under this Agreement, in an amount not less than 100% of the total compensation for this Agreement.

20.2 All bonds shall be on the applicable forms provided in Exhibit “C” and Exhibit “D” attached hereto and made part hereof. The bonds shall each contain the original notarized signature of an authorized officer of the surety and affixed thereto shall be a ce rtified and current copy of his/her power of attorney. The bonds shall be unconditional and remain in force during the entire term of the Agreement until released.

20.3 Sufficiency of Insurer or Surety. Insurance and bonds required by this Contract shall be satisfactory only if issued by companies qualified to do business in California, rated “A-” or better in the most recent edition of Best’s Rating Guide, The Key Rating Guide or in the Federal Register, and only if they are of a financial category Class VII or better. If the City determines that the work to be performed under this Agreement creates an increased or decreased risk of loss to the City, the Contractor agrees that the minimum limits of the insurance policies and the bonds may be changed accordingly upon receipt of written notice from the City’s Risk Manager.

20.4 Release of Securities. City shall release the performance bond and payment bond when the following have occurred:
a. Contractor has made a written request for release and provided evidence of satisfaction of all other requirements under this Contract; b. the Project has been accepted; and
c. after passage of the time within which lien claims are required to be made pursuant to applicable laws; if lien claims have been timely filed, City shall hold the payment bond until such claims have been resolved, Contractor has provided statutory bond, or otherwise as required by applicable law.

20.5 In accordance with Section 22300 of the Public Contracts Code, Contractor may substitute securities for any monies withheld by City to ensure performance under the Contract.
44 20.6 At the request and expense of Contractor, securities equivalent to the amount withheld shall be deposited with City or with a State or Federally chartered bank or an escrow agent who shall pay such monies to Contractor upon notification by City of Contractor's satisfactory completion of the Contract. The type of securities deposited and the method of release shall be approved by the City Attorney's office.

21. DEFAULTS.

21.1 Default of Contractor. Contractor’s failure to comply with the provisions of this Contract shall constitute a default. In the event that Contractor is in default for cause under the terms of this Agreement, City shall have no obligation or duty to continue compensating Contractor for any work performed after the date of default and can terminate or suspend this Agreement immediately by written notice to Contractor. If the Project Manager determines that Contractor is in default in the performance of any of the terms or conditions of this Contract, the Project Manager shall cause to be served upon Contractor a written notice of the default. Contractor shall have ten (10) days after service upon it of said notice in which to cure the default by rendering a sat isfactory performance, or such longer time as is approved by the City. In the event that Contractor fails to cure its default within such period of time or if the default reoccurs, the City shall have the right, notwithstanding any other provision of this Contract, to terminate this Contract without further notice and without prejudice to any other remedy to which it may be entitled at law, in equity or under this Contract.

21.2 Suspension and Termination.
a. The City may at any time, for any reason, with or without cause, suspend this Contract, or any portion hereof, by serving upon Contractor at least ten (10) days prior written notice. Upon receipt of said notice, Contractor shall immediately cease all work under this Agreement, unless the notice provides otherwise. If the City suspends a portion of this Agreement such suspension shall not make void or invalidate the remainder of this Agreement. b. This Contract may be terminated by either party for cause. In the event Contractor desires to the terminate the Agreement for cause, Contractor shall provide City with notice of the basis for the termination for cause and an opportunity to cure of not less than ten (30) calendar days. The City may terminate this Contract without cause upon thirty (30) days’ written notice of termination. Upon termination, Contractor shall be entitled to compensation for completion of any portion of the Project accepted by C ity up to the effective date of termination unless any portion of the Project is accepted by City after termination in which event Contractor shall be paid for such completed portion.

22. RESOLUTION OF CLAIMS.

22.1 In the event of any dispute or controversy with the City over any matter whatsoever, the Contractor shall not cause any delay or cessation in or of work, but shall proceed with the performance of the work in dispute. The Contractor shall retain any and all rights provided that pertain to the resolution of disputes and protests between the Parties. The disputed work will be categorized as an “unresolved dispute” and payment, if any, shall be as later determined as set forth below. The Contractor shall keep accurate, detailed records of all disputed work, claims and other disputed matters.
45 22.2 Section 20104 et seq. of the California Public Contract Code prescribes a process utilizing informal conferences, non -binding judicial -supervised mediation, and judicial arbitration to resolve disputes on construction claims of $375,000 or less. Section 92 04 of the Public Contract Code prescribes a process for negotiation and mediation to resolve disputes on construction claims. The intent of this Section is to implement Sections 20104 et seq. and Section 9204 of the California Public Contract Code. This Section shall be construed to be consistent with said statutes.

22.3 For purposes of these procedures, “claim” means a separate demand by the Contractor, after the City has denied Contractor’s timely and duly made request for payment for extra work and/or a time extension, for (A) a time extension, (B) payment of money or damages arising from work done by or on behalf of the Contractor pursuant to the Contract and payment of which is not otherwise expressly provided for or the Contractor is not otherwise entitled to, or (C) an amount the payment of which is disputed by the City.

22.4 The following requirements apply to all claims to which this section applies:
a. Claim Submittal. The claim shall be in writing and include the documents necessary to substantiate the claim. Claims governed by this procedure must be filed on or before the date of final payment. Nothing in this section is intended to extend the time limit or supersede notice requirements otherwise provided in the Contract for the filing of claims, including all requirements pertaining to compensation or payment for extra work, disputed work, and/or changed conditions. Failure to follow such contractual requirements shall bar any claims or subsequent lawsuits for compensation or payment thereon. b. Supporting Documentation. The Contractor shall submit all claims in the following format:
(i) Summary of the claim, including references to the specific Contract Document provisions upon which the claim is based. (ii) List of documents relating to claim: (a) Specifications, (b) Drawings, (c) Clarifications (Requests for Information), (d) Schedules, and (e) Other. (iii) Chronology of events and correspondence related to the claim.
(iv) Statement of grounds for the claim.
(v) Analysis of the claim’s cost, if any.
(vi) Analysis of the claim’s time/schedule impact, if any. c. City’s Response. Upon receipt of a claim pursuant to this section, City shall conduct a reasonable review of the claim and, within a period not to exceed 45 calendar days, shall provide the Contractor a written statement identifying what portion of the claim is disputed and what portion is undisputed. Any payment due on an undisputed portion of the claim will be processed and made within 60 calendar days after the City issues its written statement. 46 (i) If the City needs approval from the City Council to provide the Contractor a written statement identifying the disputed portion and the undisputed portion of the claim, and the City Council does not meet within the 45 calendar days or within the mutually agreed to extension of time following receipt of a claim sent by registered mail or certified mail, return receipt requested, the City shall have up to three days following the next duly publicly noticed meeting of the City Council after the 45-day period, or extension, expires to provide the Contractor a written statement identifying the disputed portion and the undisputed portion. (ii) Within 30 calendar days of receipt of a claim, the City may request in writing additional documentation supporting the claim or relating to defenses or claims the City may have against the Contractor. If additional information is thereafter required, it shall be requested and provided pursuant to this subdivision, upon mutual Contract of City and the Contractor.
(iii) The City’s written response to the claim, as further documented, shall be submitted to the Contractor within 30 calendar days (if the claim is less than $50,000, within 15 calendar days) after receipt of the further documentation, or within a period of time no greater than that taken by the Contractor in producing the additional information or requested documentation, whichever is greater.
d. Meet and Confer. If the Contractor disputes the City’s written response, or the City fails to respond within the time prescribed, the Contractor may so notify the City, in writing, either within 15 calendar days of receipt of the City’s response or within 15 calendar days of the City’s failure to respond within the time prescribed, respectively, and demand an informal conference to meet and confer for settlement of the issues in dispute. Upon receipt of a demand, the City shall schedule a meet and confer co nference within 30 calendar days for settlement of the dispute.
e. Mediation. Within 10 business days following the conclusion of the meet and confer conference, if the claim or any portion of the claim remains in dispute, the City shall provide the Contractor a written statement identifying the portion of the claim that remains in dispute and the portion that is undisputed. Any payment due on an undisputed portion of the claim shall be processed and made within 60 calendar days after the City issues its written statement. Any disputed portion of the claim, as identified b y the Contractor in writing, shall be submitted to nonbinding mediation, with the City and the Contractor sharing the associated costs equally. The City and Contractor shall mutually agree to a mediator within 10 business days after the disputed portion of the claim has been identified in writing, unless the Parties agree to select a mediator at a later time.
(i) If the Parties cannot agree upon a mediator, each Party shall select a mediator and those mediators shall select a qualified neutral third Party to mediate with regard to the disputed portion of the claim. Each Party shall bear the fees and costs charged by its respective mediator in connection with the selection of the neutral mediator. (ii) For purposes of this section, mediation includes any nonbinding process, including, but not limited to, neutral evaluation or a dispute review board, in which an independent third party or board assists the Parties in dispute resolution through 47 negotiation or by issuance of an evaluation. Any mediation utilized shall conform to the timeframes in this section.
(iii) Unless otherwise agreed to by the City and the Contractor in writing, the mediation conducted pursuant to this section shall excuse any further obligation under Public Contract Code Section 20104.4 to mediate after litigation has been commenced. (iv) All unresolved claims shall be considered jointly in a single mediation, unless a new unrelated claim arises after mediation is completed. f. City’s Responses. The City’s failure to respond to a claim from the Contractor within the time periods described in this section or to otherwise meet the time requirements of this section shall result in the claim being deemed rejected in its entirety. A claim that is denied by reason of the City’s failure to have responded to a claim, or its failure to otherwise meet the time requirements of this section, shall not constitute an adverse finding with regard to the merits of the claim or the responsibility of qualifications of the Contractor. City’s failure to respond shall not waive City’s rights to any subsequent procedures for the resolution of disputed claims.
g. Government Code Claims. If following the mediation, the claim or any portion remains in dispute, the Contractor must comply with the claim procedures set forth in Government Code section 900 et seq. prior to filing any lawsuit against the City. Such Government Code claims and any subsequent lawsuit based upon the Government Code claims shall be limited to those matters that remain unresolved after all procedures pertaining to extra work, disputed work, construction claims, and/or changed condit ions, includi ng any required mediation, have been followed by Contractor. If no such Government Code claim is submitted, or if the prerequisite contractual requirements are not satisfied, no action against the City may be filed. A Government Code claim must be filed no earlier than the date that Contractor completes all contractual prerequisites to filing a Government Code claim, including any required mediation. A Government Code claim shall be inclusive of all unresolved claims unless a new unrelated claim arises after the Government Code claim is submitted. For purposes of Government Code section 900 et seq., the running of the period of time within which a claim must be filed shall be tolled from the time the Contractor submits his or her written claim to the City until the time the claim is denied, including any period of time utilized by the meet and confer conference or mediation that does not result in a complete resolutions of all claims.
h. (h) Civil Actions for Claims of $375,000 or Less. The following procedures are established for all civil actions filed to resolve claims totaling $375,000 or less:
(i) Within 60 calendar days, but no earlier than 30 calendar days, following the filing or responsive pleadings, the court shall submit the matter to non-binding mediation unless waived by mutual stipulation of both Parties or unless mediation was held prior to commencement of the action in accordance with Public Contract Code section 9204 and the procedures in this Section. The mediation process shall provide for the selection within 15 calendar days by both Parties of a disinterested third person as mediator, shall be commenced within 30 calendar days of the submittal, and shall be concluded within 15 calendar days from the commencement of the mediation unless a time requirement is extended upon a good cause showing 48 to the court or by stipulation of both Parties. If the Parties fail to select a mediator within the 15 - day period, either Party may petition the court to appoint the mediator. (ii) If the matter remains in dispute, the case shall be submitted to judicial arbitration pursuant to Chapter 2.5 (commencing with Section 1141.10) of Title 3 of Part 3 of the Code of Civil Procedure, notwithstanding Section 1141.11 of that code. The Civil Discovery Act (Title 4 (commencing with Section 2016.010) of Part 4 of the Code of Civil Procedure) shall apply to any proceeding brought under this subdivision consistent with the rules pertaining to judicial arbitration.
(iii) Upon stipulation of the Parties, arbitrators appointed for these purposes shall be experienced in construction law, and, upon stipulation of the Parties, mediators and arbitrators shall be paid necessary and reasonable hourly rates of pay not to exceed their customary rate, and such fees and expenses shall be paid equally by the Parties, except in the case of arbitration where the arbitrator, for good cause, determines a different division. (iv) In addition to Chapter 2.5 (commencing with Section 1141.10) of Title 3 of Part 3 of the Code of Civil Procedure, any Party who after receiving an arbitration award requests a trial de novo but does not obtain a more favorable judgment shall, in addition to payment of costs and fees under that chapter, pay the attorney’s fees of the other Party arising out of the trial de novo.

23. NOTICE TO CITY OF CLAIMS OR LABOR DISPUTES.

23.1 Whenever Contractor has knowledge that any actual or potential labor dispute is delaying or threatens to delay the timely performance of the Contract, Contractor shall immediately give notice thereof, including all relevant information with respect thereto, to City.

24. RECORDS, REPORTS, AND RELEASE OF INFORMATION

24.1 Records. Contractor shall keep, and require subcontractors to keep, such ledgers, books of accounts, invoices, vouchers, canceled checks, reports, studies, certified and accurate copies of payroll records in compliance with all applicable laws, or other documents relating to the disbursements charged to City and services performed hereunder (the “books and records”), as shall be necessary to perform the services required by this Contract and enable the Project Manager to evaluate the performance of such services. An y and all such documents shall be maintained in accordance with generally accepted accounting principles and shall be complete and detailed. The Project Manager shall have full and free access to such books and records at all times during normal business h ours of City, including the right to inspect, copy, audit and make records and transcripts from such records. Such records shall be maintained for a period of 3 years following completion of the services hereunder, and the City shall have access to such re cords in the event any audit is required. In the event of dissolution of Contractor’s business, custody of the books and records may be given to City, and access shall be provided by Contractor’s successor in interest. Notwithstanding the above, the Contra ctor shall fully cooperate with the City in providing access to the books and records if a public records request is made and disclosure is required by law including but not limited to the California Public Records Act.

24.2 Reports. Contractor shall periodically prepare and submit to the Project Manager such reports concerning the performance of the services required by this Contract as the 49 Project Manager shall require. Contractor hereby acknowledges that the City is greatly concerned about the cost of work and services to be performed pursuant to this Contract. For this reason, Contractor agrees that if Contractor becomes aware of any facts, circumstances, techniques, or events that may or will materially increase or decrease the cost of the work or services contemplated herein, Contractor shall promptly notify the Project Manager of said fact, circumstance, technique or event and the estimated increased or decreased cost related thereto.

24.3 Ownership of Documents. All drawings, specifications, maps, designs, photographs, studies, surveys, data, notes, computer files, reports, records, documents and other materials (the “documents and materials”) prepared by Contractor, its employees, subcontr actors and agents in the performance of this Contract shall be the property of City and shall be delivered to City upon request of the Project Manager or upon the termination of this Contract, and Contractor shall have no claim for further employment or ad ditional compensation as a result of the exercise by City of its full rights of ownership use, reuse, or assignment of the documents and materials hereunder. Any use, reuse or assignment of such completed documents for other projects and/or use of uncompleted documents without specific written authorization by the Contractor will be at the City’s sole risk and without liability to Contractor, and Contractor’s guarantee and warranties shall not extend to such use, reuse or assignment. Contractor may retain copies of such documents for its own use. Contractor shall have an unrestricted right to use the concepts embodied therein. All subcontractors shall provide for assignment to City of any documents or materials prepared by them, and in the event Contractor f ails to secure such assignment, Contractor shall indemnify City for all damages resulting therefrom. Moreover, Contractor with respect to any documents and materials that may qualify as “works made for hire” as defined in 17 U.S.C. § 101, such documents and materials are hereby deemed “works made for hire” for the City.

24.4 Confidentiality and Release of Information. Information gained or work product produced by Contractor in performance of this Contract shall be considered confidential, unless such information is in the public domain or already known to Contractor. Contractor shall not release or disclose any such information or work product to persons or entities other than City without prior written authorization from the Project Manager.

24.5 Contractor, its officers, employees, agents or subcontractors, shall not, without prior written authorization from the Project Manager or unless requested by the City Attorney, voluntarily provide documents, declarations, letters of support, testimony at depositions, response to interrogatories or other information concerning the work performed under this Contract. Response to a subpoena or court order shall not be considered “voluntary” provided Contractor gives City notice of such court order or subpoena.

24.6 If Contractor, or any officer, employee, agent or subcontractor of Contractor, provides any information or work product in violation of this Contract, then City shall have the right to reimbursement and indemnity from Contractor for any damages, costs and fees, including attorneys’ fees, caused by or incurred as a result of Contractor’s conduct.

24.7 Contractor shall promptly notify City should Contractor, its officers, employees, agents or subcontractors be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions or other discov ery request, court order or subpoena from any party regarding this Contract and the work performed there under. City retains the right, but has no obligation, to represent Contractor or be present at 50 any deposition, hearing or similar proceeding. Contractor agrees to cooperate fully with City and to provide City with the opportunity to review any response to discovery requests provided by Contractor. However, this right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response.

25. UTILITY LOCATION.

25.1 To the extent required by Government Code § 4215, City will compensate Contractor for the cost of locating, repairing damage not due to the failure of Contractor to exercise reasonable care, and removing or relocating utility facilities not identified by C ity in the Bid Documents with reasonable accuracy, and for equipment on the project necessarily idled during such work. Nothing herein shall be deemed to require City to indicate the presence of existing service laterals or appurtenances whenever the presence of such utilities on the project site can be inferred from the presence of other visible facilities, such as buildings, meters, and junction boxes, on or adjacent to the site of the construction; provided, however, nothing herein shall relieve City from identifying main or trunklines in the plans and specifications. If Contractor, while performing the work, discovers utility facilities not identified by City in the plans or specifications, Contractor shall immediately notify City and the utility in writ ing. This Contract is subject to Government Code§§ 4126 through 4216.9. Contractor must notify utilities and obtain an identification number before excavation or be subject to liability for damages to subsurface installations.

26. REGIONAL NOTIFICATION CENTERS.

26.1 Contractor agrees to contact the appropriate regional notification center in accordance with Government Code Section 4216.2.

27. TRENCH PROTECTION AND EXCAVATION.

27.1 Pursuant to Labor Code § 6705, if this Project requires the excavation of any trench or trenches five feet or more in depth, Contractor shall submit, in advance of such excavation, a detailed plan showing the design of shoring, bracing, sloping, or other provisions to be made for worker protection from the hazard of caving ground during the excavation of such trench or trenches.

27.2 The plan shall be reviewed and accepted by the City, or a registered civil or structural engineer employed by the City to whom authority has been delegated, prior to the excavation. If the plan varies from the shoring system standards, the plan shall be pr epared by a registered civil or structural engineer.

27.3 This Section shall not be deemed to allow the use of a shoring, sloping, or protective system less effective than that required by the Construction Safety Orders.

27.4 This Section shall not be construed to impose tort liability on the City or any of its employees.

27.5 Full compensation for sheeting, shoring, bracing, sloping, and all other provisions required for worker protection shall be considered as included in the contract price shown in the appropriate Bid Item, and no additional compensation will be allowed therefor. 51 28. PROTECTION AND CARE OF WORK AND MATERIALS.

28.1 The Contractor shall adopt reasonable methods, including providing and maintaining storage facilities, during the life of the Contract to furnish continuous protection to the work, and the equipment, materials, papers, documents, plans, studies and/or other components thereof to prevent losses or damages, and shall be responsible for all such damages, to persons or property, until acceptance of the work by City, except such losses or damages as caused by City’s own negligence. Stored materials shall be reas onably accessible for inspection. Contractor shall not, without City’s consent, assign, sell, mortgage, hypothecate, or remove equipment or materials which have been installed or delivered and which may be necessary for the completion of the work.

29. HAZARDOUS CONDITIONS.

29.1 Contractor shall, without disturbing the condition, notify City, in writing, as soon as Contractor, or any of Contractor's subcontractors, agents, or employees have knowledge and reporting is possible, of the discovery of any of the following conditions:
a. The presence of any material that Contractor believes is hazardous waste, as defined in Section 25117 of the Health and Safety Code; b. Subsurface or latent physical conditions at the site differing from those indicated in the specifications; or
c. Unknown physical conditions at the site of any unusual nature, different materially for those ordinarily encountered and generally recognized as inherent in work of the character provided for in this Contract.

29.2 Pending a determination by City of appropriate action to be taken, Contractor shall provide security measures (e.g., fences) adequate to prevent the hazardous waste or physical conditions from causing bodily injury to any person.

29.3 City shall promptly investigate the reported conditions. If City, through and in the exercise of its sole discretion, determines that the conditions do materially differ or do involve hazardous waste, and will cause a decrease or increase in Contractor's cost of, or time required for, performance of any part of the work, then City shall issue a change order.

29.4 In the event of a dispute between City and Contractor as to whether the conditions materially differ, or involve hazardous waste, or cause a decrease or increase in Contractor's cost of, or time required for, performance of any part of the work, Contractor shall not be excused from any scheduled completion date, and shall proceed with all work to be performed under the contract. Contractor shall retain any and all rights that pertain to the resolution of disputes and protests between the parties.

30. CARB COMPLIANCE.

30.1 For a project involving the use of in-use off-road diesel-fueled vehicles, as defined by 13 CCR 2449, Contractor shall obtain copies of the valid Certificates of Reported Compliance, as described in 13 CCR 2449(n), for the fleet performing services pursuan t to this contract and all listed subcontractors, if applicable, prior to commencing any work pursuant to this 52 Contract or any renewed contract with that fleet. Contractor shall indemnify, defend and hold harmless the District, its officers, agents, employees and directors from any liability imposed arising from Contractor’s violation of any regulation set forth in 13 CCR 2449.

31. INSPECTION.

31.1 The work shall be subject to inspection and testing by City and its authorized representatives during manufacture and construction and all other times and places, including, without limitation, the plans of Contractor and any of its suppliers. Contractor shall provide all reasonable facilities and assistance for the safety and convenience of inspectors. All inspections and tests shall be performed in such manner as to not unduly delay the work. The work shall be subject to final inspection and acceptance notwithstanding any payments or other prior inspections. Such final inspection shall be made within a reasonable time after completion of the work.

32. CONTRACTOR STATUS.

32.1 Contractor shall have no authority to bind City in any manner, or to incur any obligation, debt or liability of any kind on behalf of or against City, whether by contract or otherwise, unless such authority is expressly conferred under this Contract or is otherwise expressly conferred in writing by City. Contractor shall not at any time or in any manner represent that Contractor or any of Contractor’s officers, employees, or agents are in any manner officials, officers, employees or agents of City. N either Contractor, nor any of Contractor’s officers, employees or agents, shall obtain any rights to retirement, health care or any other benefits which may otherwise accrue to City’s employees. Contractor expressly waives any claim Contractor may have to any such rights.

32.2 Neither the City nor any of its employees shall have any control over the manner, mode or means by which Contractor, its agents or employees, perform the services required herein, except as otherwise set forth herein. City shall have no voice in the select ion, discharge, supervision or control of Contractor’s employees, servants, representatives or agents, or in fixing their number, compensation or hours of service. Contractor shall perform all services required herein as an independent contractor of City a nd shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role. City shall not in any way or for any purpose become or be deemed to be a partner of Contractor in its business or otherwise or a joint venturer or a member of any joint enterprise with Contractor, and Contractor shall make no representation to that effect.

32.3 The experience, knowledge, capability and reputation of Contractor, its principals and employees were a substantial inducement for the City to enter into this Contract.

Therefore, Contractor shall not contract with any other entity to perform in whole or i n part the services required hereunder without the express written approval of the City. All subcontractors shall obtain, at its or Contractor’s expense, such licenses, permits, registrations and approvals (including from the City) as may be required by la w for the performance of any services or work under this Contract. In addition, neither this Agreement nor any interest herein may be transferred, assigned, conveyed, hypothecated or encumbered voluntarily or by operation of law, whether for the benefit of creditors or otherwise, without the prior written approval of City. Transfers restricted hereunder shall include the transfer to any person or group of persons acting in concert of more 53 than twenty five percent (25%) of the present ownership and/or control of Contractor, taking all transfers into account on a cumulative basis. In the event of any such unapproved transfer, including any bankruptcy proceeding, this Agreement shall be void. No approved transfer shall release the Contractor or any surety of Contractor of any liability hereunder without the express consent of City.

33. GENERAL TERMS.

33.1 Waiver. Waiver by any party to this Contract of any term, condition, or covenant of this Contract shall not constitute a waiver of any other term, condition, or covenant.

Waiver by any party of any breach of the provisions of this Contract shall not constitute a w aiver of any other provision or a waiver of any subsequent breach or violation of any provision of this Contract. Acceptance by City of any work or services by Contractor shall not constitute a waiver of any of the provisions of this Contract. No delay or omission in the exercise of any right or remedy by a non-defaulting party on any default shall impair such right or remedy or be construed as a waiver. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement.

33.2 Rights and Remedies Are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Contract, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party.

33.3 Unfair Business Practices Claims. Pursuant to Public Contract Code § 7103.5, in entering into this Contract, Contractor offers and agrees to assign to the City all rights, title, and interest in and to all causes of action it may have under § 4 of the Clayton Act (15 U.S.C. § 15) or under the Cartwright Act (Chapter 2, (commencing with § 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, services or materials related to this Agreement. This assignment shall be made and become effective at the time the City tenders final payment to the Contractor without further acknowledgment by the Parties.

33.4 Discrimination. Contractor covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, gender, sexual orientation, marital status, national origin, ancestry, or other protected class in the performance of this Contract. Contractor shall take affirmative action to insure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, gender, sexual orientation, marital status, national origin, ancestry, or other protected class.

33.5 Unauthorized Aliens. Contractor hereby promises and agrees to comply with all of the provisions of the Federal Immigration and Nationality Act, 8 U.S.C. § 1101 et seq., as amended, and in connection therewith, shall not employ unauthorized aliens as defined therein.

Should Contractor so employ such unauthorized aliens for the performance of work and/or services covered by this Contract, and should any liability or sanctions be imposed against City for such use of unauthorized aliens, Contractor hereby agrees to and shall reimburse City for the cost of all 54 such liabilities or sanctions imposed, together with any and all costs, including attorneys’ fees, incurred by City.

33.6 Non-liability of City Officers and Employees. No officer or employee of the City shall be personally liable to the Contractor, or any successor in interest, in the event of any default or breach by the City or for any amount which may become due to the Con tractor or to its successor, or for breach of any obligation of the terms of this Contract.

33.7 Governing Law. This Agreement shall be interpreted, construed and governed both as to validity and to performance of the parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Riverside, State of California, or any other appropriate court in such county, and Contractor covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. In the event of litigation in a U.S. District Court, venue shall lie exclusively in the Central District of California, in the County of Riverside, State of California.

33.8 Provisions Required By Law. Each and every provision of law and clause required by law to be inserted in this Contract shall be deemed to be inserted herein, and the Contract shall be read and enforced as though it were included herein. If through mistake or otherwise any such provision is not inserted, or is not correctly inserted, then upon application of either party, the contract shall forthwith be physically amended to make such insertion or correction.

33.9 Severability. In the event that any one or more of the phrases, sentences, clauses, paragraphs, or sections contained in this Contract shall be declared invalid or unenforceable by a valid judgment or decree of a court of competent jurisdiction, such inval idity or unenforceability shall not affect any of the remaining phrases, sentences, clauses, paragraphs, or sections of this Contract which are hereby declared as severable and shall be interpreted to carry out the intent of the parties hereunder unless the invalid provision is so material that its invalidity deprives either party of the basic benefit of their bargain or renders this Contract meaningless.

33.10 Interpretation. The terms of this Contract shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of this Contract or any other rule of construction which mi ght otherwise apply.

33.11 Counterparts. This Contract may be executed in any number of counterparts and each of such counterparts shall for all purposes be deemed to be an original, whether the signatures are originals, electronic, facsimiles or digital. All such counterparts shal l together constitute but one and the same Contract. All signatures on bonds must be originals.

33.12 Written Notice. Any written notice required to be given in any part of the Contract Documents shall be performed by depositing the same in the U.S. Mail, postage prepaid, directed to the address of Contractor as set forth above, and to City addressed to the Project Manager as follows:

City of Murrieta
1 Town Square
55 Murrieta, CA 92562

34. CONTRACT MODIFICATIONS

34.1 Additional terms and conditions of this Contract, if any, or any modifications or revisions to the standard terms and conditions herein are made a part hereof as set forth in the “Contract Modifications” attached hereto as Exhibit A and incorporated herein by this reference. In the event of a conflict between the provisions of Exhibit A and any other provisions of this Contract, the provisions of Exhibit A shall govern.

35. FEDERAL FUNDING.

35.1 If federal funding is being utilized to fund any part of the Project, as indicated on the Cover Page of this Contract, the terms of Exhibit E are hereby incorporated herein by this reference. If no federal funding is being utilized, Exhibit may be omitted.

[SIGNATURES ON FOLLOWING PAGE]
56 01375.0001 1008641.2 10/8/2025 -27-

IN WITNESS WHEREOF, the Parties hereto have executed this Contract on the date and year set forth below.

CITY OF MURRIETA ATTEST:

By:_____________________________ By:_____________________________ Cindy Warren, Mayor Cristal McDonald, City Clerk
Date: ___________________________ Date: ___________________________

APPROVED AS TO FORM

ALESHIRE & WYNDER, LLP
By: ____________________________
Tiffany Israel, City Attorney

CONTRACTOR:

By:_____________________________ By:_____________________________ Name: Mitch Holle Name: Gustavo Zazuetta
Title: President Title: Secretary
Date: ___________________________ Date: ___________________________

Two corporate officer signatures required when Contractor is a corporation, with one signature required from each of the following groups: 1) Chair person of the Board, President or any Vice President; and 2) Secretary, any Assistant Secretary, Chief Financial Officer or any Assistant Treasurer. (Cal. Corp. Code § 313.) Appropriate attestations shall be included as may be required by the bylaws, articles of incorporation or other rules or regulations applicable to Contractor’s business City.

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EXHIBIT A

CONTRACT MODIFICATIONS
(Superseding Contract Boilerplate)

Click or tap here to enter text.

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EXHIBIT B

INSURANCE REQUIREMENTS

Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Contractor, its agents, representatives, or employees.

MINIMUM SCOPE AND LIMIT OF INSURANCE

Coverage shall be at least as broad as:

1. Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $2,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.

2. Automobile Liability: Insurance Services Office Form Number CA 0001 covering, Code 1 (any auto), or if Contractor has no owned autos, Code 8 (hired) and 9 (non-owned), with limit no less than $1,000,000 per accident for bodily injury and property damage.

3. Workers’ Compensation insurance as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limit of no less than $1,000,000 per accident for bodily injury or disease. (Not required if Contractor provides written verification it has no employees)

5. Cyber: Vendor/Contractor shall procure and maintain for the duration of the contract insurance against claims for security breaches, system failures, injuries to persons, damages to software, or damages to property (including computer equipment) which may arise from or in connection with the performance of the work hereunder by the Vendor, its agents, representatives, or employees. Vendor shall procure and maintain for the duration of the contract insurance claims arising out of their services and including, but not limited to loss, damage, theft or other misuse of data, infringement of intellectual property, invasion of privacy and breach of data.

Cyber Liability Insurance, with limits not less than $2,000,000 per occurrence or claim, $2,000,000 aggregate. Coverage shall be sufficiently broad to respond to the duties and obligations as is undertaken by Vendor in this agreement and shall include, but not be limited to, claims involving security breach, system failure, data recovery, business interruption, cyber extortion, social engineering, infringement of intellectual property, including but not limited to infringement of copyright, trademark, trade dress, invasion of privacy violations, information theft, damage to or destruction of electronic information, release of private information, and alteration of electronic information. The policy shall 59 01375.0001 1008641.2 10/8/2025
provide coverage for breach response costs, regulatory fines and penalties as well as credit monitoring expenses.

If the Contractor maintains broader coverage and/or higher limits than the minimums shown above, the City requires and shall be entitled to the broader coverage and/or the higher limits maintained by the Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.

Other Insurance Provisions
The insurance policies are to contain, or be endorsed to contain, the following provisions:

Additional Insured Status
The City, its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Contractor including materials, parts, or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the Contractor's insurance (at least as broad as ISO Form CG 20 10 11 85 or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 if a later edition is used).

Primary Coverage
For any claims related to this contract, the Contractor’s insurance coverage shall be primary and non -contributory and at least as broad as ISO CG 20 01 04 13 as respects the City, its officers, officials, employees, and volunteers. Any insurance or self -insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Contractor’s insurance and shall not contribute with it. This requirement shall also apply to any Excess or Umbrella liability policies.

Umbrella or Excess Policy
The Contractor may use Umbrella or Excess Policies to provide the liability limits as required in this agreement. This form of insurance will be acceptable provided that all of the Primary and Umbrella or Excess Policies shall provide all of the insurance coverages herein required, including, but not limited to, primary and non -contributory, additional insured, Self -Insured Retentions (SIRs), indemnity, and defense requirements. The Umbrella or Excess policies shall be provided on a true “following form” or broader coverage basis, with coverage at least as broad as provided on the underlying Commercial General Liability insurance. No insurance policies maintained by the Additional Insureds, whether primary or excess, and which also apply to a loss covered hereunder, shall be called upon to contribute to a loss until the Contractor’s primary and excess liability policies are exhausted.

Notice of Cancellation
Each insurance policy required above shall provide that coverage shall not be canceled, except with notice to the City.

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Waiver of Subrogation
Contractor hereby grants to City a waiver of any right to subrogation which any insurer of said Contractor may acquire against the City by virtue of the payment of any loss under such insurance.

Contractor agrees to obtain any endorsement that may be neces sary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.

Self-Insured Retentions
Self-insured retentions must be declared to and approved by the City. The City may require the Contractor to purchase coverage with a lower retention or provide proof of ability to pay losses and related investigations, claim administration, and defense ex penses within the retention. The policy language shall provide, or be endorsed to provide, that the self -insured retention may be satisfied by either the named insured or City. The CGL and any policies, including Excess liability policies, may not be subje ct to a self -insured retention (SIR) or deductible that exceeds $25,000 unless approved in writing by City. Any and all deductibles and SIRs shall be the sole responsibility of Contractor or subcontractor who procured such insurance and shall not apply to the Indemnified Additional Insured Parties. City may deduct from any amounts otherwise due Contractor to fund the SIR/deductible. Policies shall NOT contain any self-insured retention (SIR) provision that limits the satisfaction of the SIR to the Named. Th e policy must also provide that Defense costs, including the Allocated Loss Adjustment Expenses, will satisfy the SIR or deductible. City reserves the right to obtain a copy of any policies and endorsements for verification.

Acceptability of Insurers
Insurance is to be placed with insurers authorized to conduct business in the state with a current A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the City.

Claims Made Policies (note – should be applicable only to professional liability, see below) If any of the required policies provide claims-made coverage:

1. The Retroactive Date must be shown, and must be before the date of the contract or the beginning of contract work.

2. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work.

3. If coverage is canceled or non -renewed, and not replaced with another claims -made policy form with a Retroactive Date prior to the contract effective date, the Contractor must purchase “extended reporting” coverage for a minimum of five (5) years after completion of work.

Verification of Coverage
Contractor shall furnish the City with original certificates and amendatory endorsements or copies of the applicable policy language effecting coverage required by this clause and a copy of the Declarations and Endorsements Pages of the CGL and any Excess policies listing all policy endorsements. All certificates and endorsements and copies of the Declarations & Endorsements pages are to be received and approved by the City before work commences. However, failure to obtain the requi red documents prior to the work beginning shall not waive the Contractor’s 61 01375.0001 1008641.2 10/8/2025
obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.

City reserves the right to modify these requirements, in cluding limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.

Subcontractors
Contractor shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein, and Contractor shall ensure that City is an additional insured on insurance required from subcontractors.

Duration of Coverage
CGL & Excess liability policies for any construction related work, including, but not limited to, maintenance, service, or repair work, shall continue coverage for a minimum of 5 years for Completed Operations liability coverage. Such Insurance must be maintained, and evidence of insurance must be provided for at least five (5) years after completion of the contract of work.

Special Risks or Circumstances
City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.

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CITY OF MURRIETA
City Council Meeting Agenda
Report
12/2/2025
Agenda Item No. 6.

TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Javier Carcamo, Finance Director
PREPARED BY: Jennifer Terry, Finance Manager
SUBJECT:

Annual Adoption of the Investment Policy for Fiscal Year 2025/26

RECOMMENDATION
Adopt Resolution No. 25-4897 entitled: A Resolution of the City Council of the City of Murrieta, California, Adopting the Fiscal Year 2025/26 Investment Policy.

PRIOR ACTION/VOTE
On April 18, 2023, the City Council adopted Resolution No. 23-4657, approving the Fiscal Year 2022/23 Investment Policy (Vote: 4-0-1).

On December 5, 2023, the City Council adopted a Resolution No. 23-4718, approving the Fiscal Year 2023/24 Investment Policy (Vote: 5-0).

On December 3, 2024, the City Council adopted a Resolution No. 24-4797, approving the Fiscal Year 2024/25 Investment Policy (Vote: 5-0).

CITY COUNCIL GOAL
Maintain a high performing organization that values fiscal sustainability, transparency, accountability and organizational efficiency.

DISCUSSION
California Government Code Section 53646 (Government Code) requires that the Treasurer of a local agency annually submit a statement of investment policy to the City Council at a public meeting for their approval.

The investment policy establishes the procedures and guidelines for investing to ensure the prudent management of the City of Murrieta’s(City) excess funds and to ensure compliance with the requirements of the Government Code. Additionally, the City’sinvestment policy is consistent with Government Code Section 53600, et seq., which provides standards regarding investment policies and reports, securities, and repurchase agreements for local agencies.

The City has four primary goals with respect to its investments, which are listed below in priority order. · Safety - Protect and preserve the City’s capital investments; · Liquidity - Ensure readily available cash and mitigate the need to sell securities to obtain cash; · Yield - Provide the highest level of earnings, without sacrificing safety and liquidity, while complying CITY OF MURRIETA Printed on 11/26/2025Page 1 of 2
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78 12/2/2025
Agenda Item No. 6.
· Yield - Provide the highest level of earnings, without sacrificing safety and liquidity, while complying with the Government Code; and
· Diversification - Avoid incurring unreasonable market risk.

The City contracts with investment advisor Chandler Asset Management (CAM) to assist in the administration of the City’sinvestment portfolio. CAM reviews the City’sinvestment policy on an annual basis and makes suggestions as to how the policy can evolve. The review includes a comparison against any actions adopted by the California legislature that might affect the investment policy, with recommendations for revisions as needed.

In collaboration with CAM, the Finance Department staff ensures the inclusion of the latest best practices from recognized industry groups such as the Government Finance Officers Association, California Society of Municipal Finance Officers, California Municipal Treasurers Association, and the Association of Public Treasurers of the United States and Canada.

CAM has reviewed the City’scurrent policy to make sure it is consistent with the Government Code and recommends four changes to the Investment Policy (Attachment 2) for Fiscal Year 2025/26, consistent with the passage of Assembly Bill (AB) 2618 that went into effect on January 1, 2025:
· Section VII, Letter Q
o Certificates of Deposit Placement Service is being updated to Placement Services Deposits.

Under a provision sunsetting on January 1, 2031, no more than 50% of the portfolio may be invested in deposits through a placement service, including Certificates of Deposit, if the Agency is a city, district, or local agency that does not pool money with other local agencies; · Section VII, addition of Letter S
o Shares of Beneficial Interest Issued by a Joint Powers Authority (JPA), provided that: The JPA is organized pursuant to California Government Code Section 6509.7 and invests in the securities and obligations authorized in subdivisions (a) to (r), inclusive. Each share shall represent an equal proportional interest in the underlying pool of securities owned by the JPA. The JPA has retained an investment advisor who is registered with the SEC (or exempt from registration), has assets under management in excess of $500 million, and has at least five years’ experience investing in instruments authorized by Section 53601, subdivisions (a) to (q); · Summary of Allowable Investments Table and footnotes amended to incorporate the two changes above; and
· Adjusted, added, or deleted several terms in the Glossary of Investment Terms consistent with the other proposed edits and addressed best practices.

FISCAL IMPACT
There is no fiscal impact associated with the recommended action.

ATTACHMENTS

1. Resolution No. 25-4897

2. FY 2025/26 Investment Policy - Redline Version
CITY OF MURRIETA Printed on 11/26/2025Page 2 of 2
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79 RESOLUTION NO. 25-4897

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MURRIETA, CALIFORNIA, ADOPTING THE FISCAL YEAR 2025/26

INVESTMENT POLICY

WHEREAS, California Government Code section 53646 provides for the treasurer or chief financial officer of a local agency to present to the legislative body of that agency a statement of the agency’s investment policy; and

WHEREAS, on December 3, 2024, the City Council of the City of Murrieta (“City”) adopted Resolution 24-4797 approving the City’s Investment Policy (“Policy”); and

WHEREAS, the Policy should be reviewed at least annually to ensure its consistency with the overall objectives of preservation of principal, liquidity, and return, and its relevance to current law and financial and economic trends; and

WHEREAS, the Treasurer of the City has, through its agent, Chandler Asset Management (“CAM”), reviewed the current Policy, as well as any actions taken by the Legislature of the State of California that would have affected the City’s Policy; and

WHEREAS, Assembly Bill (AB) 2618 went into effect on January 1, 202 5, and implemented changes to local government investing; and

WHEREAS, there are four proposed changes to the Policy recommended by CAM that are consistent with AB 2618; and

WHEREAS, the proposed changes conform with the California Government Code; and

WHEREAS, the Treasurer is recommending that these changes be made to the Policy.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF
MURRIETA, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:

Section 1. The recitals above are true and correct and incorporated herein by this reference.

Section 2. That the Investment Policy for Fiscal Year 202 5/26, attached hereto as Exhibit A, is approved.

PASSED, APPROVED, AND ADOPTED this 2nd day of December 2025.

80 ______________________________
Cindy Warren, Mayor

ATTEST:

Cristal McDonald, City Clerk

APPROVED AS TO FORM:

Tiffany J. Israel, City Attorney

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE )§

CITY OF MURRIETA )

I, Cristal McDonald, City Clerk of the City of Murrieta, California, do hereby certify that the foregoing Resolution No. 25-4897 was duly passed and adopted by the City Council of the City of Murrieta at the regular meeting thereof, held on the 2nd day of December 2025, and was signed by the Mayor of the said City, and that the same was passed and adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Cristal McDonald, City Clerk

81 City of Murrieta Investment Policy Page 1

I - INTRODUCTION

The City Council of the City of Murrieta (City) has adopted this Investment Policy (Policy) in order to establish the investment scope, objectives, delegation of authority, standards of prudence, reporting require ments, internal controls, eligible investments and transactions, diversification requirements, risk tolerance, and safekeeping and custodial procedures for the investment of the funds of the City. All su ch funds will be invested in accordance with this Policy and with applicabl e sections of the California Government Code. This Policy was endorsed and adopted by t he City and is effective as of the 2 nd day of December 2025, and replaces any previous versions.

II - SCOPE

This Policy applies to all operating funds of the City. Non-operating funds may be subject to other prevailing documents, such as a governing bond indenture. This policy excludes Employee Retirement and Deferred Compensation Funds. Additional funds that may be created from time to time shall be added to t he City’s investment portfolio (portfolio) and managed in accordance with the provisions of this Policy.

All cash shall be pooled for investment purpos es. The investment income derived from the pooled investment account shall be alloca ted to the contributing funds based upon the proportion of the respective average balances relative to the total pooled balance in the portfolio. Investment income shall be dist ributed to the individual funds not less than annually.

III - OBJECTIVES

The City’s funds shall be invested in accordance with the City’s Municipal Code and all applicable State statutes and Federal r egulations, and in a manner designed to accomplish the following objectives, which are listed in priority order:

1. Preservation of capital and prot ection of investment principal.

2. Maintenance of sufficient liquidi ty to meet anticipated cash flows.

3. Attainment of a market value rate of return.

4. Diversification to avoid in curring unreasonable market risks.

IV - DELEGATION OF AUTHORITY

The management responsibility for the City’s investment program is delegated by the City Council to the Treasurer pursuant to Ca lifornia Government Code Section 53607 and Section 2.20.030 of the City’s Municipal Code. The City Manager serves as the Treasurer.

The Treasurer has delegated the authority to conduct investment transactions

CITY OF MURRIETA

INVESTMENT POLICY
82 City of Murrieta Investment Policy Page 2
and to manage the operation of the portfolio to the Finance Director. These officers shall meet regularly to discuss economic and market conditions, and to plan investment strategy to meet the City’s fiscal objecti ves. No person may engage in an investment transaction except as expressly provided under the terms of this Policy.

V - PRUDENCE

The standard of prudence to be used for m anaging the City’s investments shall be California Government Code Section 53600. 3, the prudent invest or standard, which states that “When investing, reinvesting, purchasing, acqui ring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then preva iling, including, but not limit ed to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters w ould use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency.”

The City’s overall investment program shall be designed and managed with a degree of professionalism that is worthy of the public trust. The City recognizes that no investment is totally without risk and that the investment ac tivities of the City are a matter of public record. Accordingly, the City recognizes that occasional measured losses may occur in a diversified portfolio and shall be considered wit hin the context of the overall portfolio’s return, provided that adequate diversification has been implemented and that the sale of a security is in the best long-term interest of the City.

If, due to market changes or fluctuations in the size of the City’s portfolio, a percentage of portfolio limitation is exceeded, the affected securities may be held to their maturity if the Treasurer believes it is prudent to do so.

The Treasurer and authorized in vestment personnel exercisi ng due diligence shall be relieved of personal responsibility for an indivi dual security’s credit risk or market price changes, provided that the deviations from expec tations are reported in a timely fashion to the City Council and appropriate action is taken to control adverse developments.

VI - ETHICS AND CONFLICTS OF INTEREST

Elected officials and employees involved in the City’s investment program shall refrain from personal business activity that could conflict with proper execution of the investment program or that could impair or create the appearance of an impairment of their ability to make impartial investment decisions. These individuals shall disclose to the City Manager any material interests they have in financial institutions that conduct business with the City and they shall subordinate their personal investment transactions to those of the City.

The Treasurer and the Finance Director shall file a Statement of Economic Interests each year pursuant to California Government Code Section 87203 and regulations of the Fair Political Practices Commission.
83 City of Murrieta Investment Policy Page 3

VII - AUTHORIZED SECURITIES AND TRANSACTIONS

All investments and deposits of the City shall be made in accordance with California Government Code Sections 16429.1, 53600-53609 and 53630-53686, except that, pursuant to California Government Code Se ction 5903(e), proceeds of bonds and any moneys set aside or pledged to secure paym ent of the bonds may be invested in securities or obligations described in the ordinance, resolution, indenture, agreement, or other instrument providing for the issuance of the bonds. Any revisions or extensions of the above referenced code sections will be assumed to be part of this Policy immediately upon being enacted. However, in the event that amendments to these sections conflict with this Policy and past City investment prac tices, the City may delay adherence to the new requirements when it is deemed in the bes t interest of the Cit y to do so. In such instances, after consultation with the City’ s attorney, the Treasurer will present a recommended course of action to the City Council for approval. Percentage holding limits and credit quality minimums listed in this sect ion apply at the time the security is purchased.

The City has further restricted the eligible types of securities and transactions as follows:

A. United States Treasury bills, bonds, and notes with a final maturity not exceeding five years from the date of trade settlement. There is no limitation as to the percentage of the portfolio that can be invested in this category.

B. Federal Agency Obligations for which the faith and credit of the United States are pledged for the payment of principal and interest, and which have a final maturity not exceeding five years from the date of trade settlement. There is no limitation as to the percentage of the portfolio that can be invested in this category.

C. Federal Instrumentality (government sponsored enterprise) debentures, discount notes, callable securities and step- up securities with a final maturity not exceeding five years from the date of trade settlement. No more than 30% of the portfolio may be invested in any single Federal In strumentality/GSE issuer. The maximum percentage of callable agency securities in the portfolio is 20%.

D. Mortgage-backed Securities, Collateralized Mortgage Ob ligations and Asset- backed Securities limited to mortgage-backed pass-through securities issued by a US government agency or consumer receivable pa ss-through certificates or bonds with a final maturity not exceeding fi ve years from the date of tr ade settlement. The securities are rated in a rating categor y of “AA” or its equivalent or higher by a NRSRO. The aggregate investment in mortgage-backed and asset-backed securities described in this section shall not exceed 20% of the portfolio with no more than 5% held in any one issuer that is not a US government agency.

E. Repurchase Agreements with a final termination date not exceeding one year collateralized with securities authorized un der California Government Code. For the purpose of this section, the term collatera l shall mean purchased securities under the terms of the City’s approved Master Repurchase Agreement. The purchased securities shall have a minimum market value including accrued interest of 102% of the dollar value 84 City of Murrieta Investment Policy Page 4
of the funds borrowed. Coll ateral shall be hel d in the City’s cu stodian bank, as safekeeping agent, and the market value of the collateral securities shall be marked-to- the-market daily.

Repurchase Agreements shall be entered in to only with broker/dealers who are recognized as Primary Dealers by the Federal Reserve Bank of New York or with firms that have a primary dealer wit hin their holding company structure. The Treasurer shall maintain a copy of the City's approved Master Repurchase Agreement along with a list of the broker/dealers who have executed same.

The aggregate investment in Repurchase Ag reements shall not exceed 20% of the portfolio.

F. Prime Commercial Paper with a maturity not exc eeding 270 days from the date of trade settlement with the highest ranking or of the highest le tter and number rating assigned by a NRSRO. The entity that issues the commercial paper shall meet all of the conditions in either sub-paragraph 1) or sub-paragraph 2) below:

1) The entity shall (a) be organized and operat ing in the United St ates as a general corporation, (b) have total assets in excess of $500,000,000, and (c) have debt other than commercial paper, if an y, that is rated in a ra ting category of “A” or its equivalent or higher by a NRSRO.
2) The entity shall (a) be organized withi n the United States as a special purpose corporation, trust, or lim ited liability company, (b) have program-wide credit enhancements, including, but not limited to, over collateralization, letters of credit or surety bond and (c) have commercial paper that is rated in a rating category of “A-1” or its equivalent or higher by a NRSRO.

Not more than 5% of the portfolio may be invested in the commercial paper and medium- term notes of any issuer and the aggregate in vestment in commercial paper shall not exceed 25% of the portfolio. Under a provis ion sunsetting on January 1, 2026, no more than 40% of the portfolio may be invested in Commercial Paper if the Agency’s investment assets under management are greater than $100,000,000.

G. Eligible Bankers Acceptances issued by Federal Deposit Insurance Corporation (FDIC) insured commercial banks, rated at least “A-1” or the equivalent by a NRSRO with maturities not exceeding 180 days from the date of trade settlement. If issuers have senior debt outstanding, it shall be rated in a rating category of “A” or its equivalent or higher by a NRSRO. No more than 5% of th e portfolio shall be invested in bankers acceptances of any one commercial bank, and the aggregate investment in bankers acceptances shall not exceed 30% of the portfolio.

H. Medium-Term Notes issued by corporations organi zed and operating within the United States or by depository institutions licensed by the United States or any state and operating within the Unit ed States. Medium-Term Notes shall have a final maturity not exceeding five years from t he date of trade settlement and must be rated in a rating category of “A” or its equivalent or higher by a NRSRO at the time of purchase. Not more than 5% of the City’s total portfolio shall be invested in the Medium-Term Notes and 85 City of Murrieta Investment Policy Page 5
commercial paper of any one issuer and the aggregate investment in Medium-Term Notes may not exceed 30% of the portfolio.

I. Supranational Securities that are United States dollar denominated senior unsecured unsubordinated obli gations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank, with a maximum remaining maturity of five years or less, and eligible for purchase and sale withi n the United States.

Investments under this subdivision shall be ra ted in a rating categor y of “AA” or its equivalent or higher by a NRSRO and shall not exceed 30% of the portfolio with no more than 10% invested in any one issuer.

J. State of California’s Local Agency Investment Fund (LAIF), The City may invest up to the maximum amount permitted by LAIF, pursuant to California Government Code Section 16429.1. LAIF’s investments in instruments prohibited by or not specified in the City’s policy do not exclude the investment in LAIF itself from the City’s list of allowable investments, provided LAIF’s reports allow the Treasurer to adequately judge the risk inherent in LAIF’s portfolio.

K. Municipal Bonds , State of California registered warrants or treasury notes or bonds, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the state or by a department, board, agency, or authority of the state.

Registered treasury notes or bonds of any of the other 49 states in addition to California, including bonds payable solely out of t he revenues from a rev enue producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 states, in addition to California.

Bonds, notes, warrants, or other evidences of indebtedness of a local agency within California including bonds payable solely out of the revenues fr om a revenue-producing property owned, controlled, or operated by the local agency, or by a department, board, agency, or authority of the local agency.

In addition, these securities must be rated in a rating category of “A” or its equivalent or higher by a NRSRO with maturities not exc eeding five years from the date of trade settlement. No more than 5% of the portfolio shall be invested in any one municipal issuer and the aggregate investment in municipal bonds shall not exceed 30% of the portfolio.

L. Money Market Funds registered under the Investment Company Act of 1940 that are (1) “no-load” (meaning no commission or fee shall be charged on purchases or sales of shares); (2) have a constant net asset value per share of $1.00; (3) invest only in the securities and obligations aut horized in the applicable Califo rnia statute; and (4) have a rating in a rating category of “AAA” or its equivalent by at least two NRSROs. Investment in any individual fund may not exceed 10% of the fund, and the aggregate investment in any combination of Money Market Funds and Mutual Funds shall not exceed 20% of the portfolio.
86 City of Murrieta Investment Policy Page 6
M. Mutual Funds registered under the Investment Company Act of 1940 that are (1) “no-load” (meaning no commission or fee s hall be charged on purchases or sales of shares); (2) invest only in the securities and obligations authorized in the applicable California statute; and (3) have a rating in a ra ting category of “AAA” or its equivalent by at least two NRSROs. The investment in an y individual Mutual Fund shall not exceed 10% of the portfolio. In addition, investment in any individual fund may not exceed 10% of the fund, and the aggregate investment in any combination of Mutual Funds and money market funds shall not exceed 20% of the portfolio.

N. Negotiable Certificates of Deposit (NCDs) , issued by a nationally or state- chartered bank, a savings associ ation or a federal associati on, a state or federal credit union, or by a federally licensed or state-licensed branch of a foreign bank, provided that:

The amount of the NCD insured up to the FDIC limit does not require any credit ratings; Any amount above the FDIC insured limit must be issued by institutions which have short- term debt obligations rated “A-1” or its equiva lent or better by at least one NRSRO; or long-term obligations rated in a rating category of “A” or its equivalent or higher by at least one NRSRO; No more than 30% of the total portfolio may be invested in NCDs (combined with CDARS); No more than 5% of the portfolio may be invested in any single issuer; The maximum maturity does not exceed five (5) years.

O. Federally Insured Time Deposits (Non- Negotiable Certificates of Deposit) in state or federally chartered banks, savings and loans, or credit unions, provided that: (1) The amount per institution is limited to the maximum covered under federal insurance; (2) No more than 20% of the portf olio will be invested in a combi nation of federally insured and collateralized time deposits; and (3) The maximum maturity does not exceed five (5) years.

P. Collateralized Time Deposits (Non-Negotiable Certificates of Deposit) in state or federally chartered banks, savings and loans, or credit unions in excess of insured amounts which are fully collateralized with se curities in accordance with California law, provided that: No more than 20% of the por tfolio will be invested in a combination of federally insured and collateralized time deposits; The maximum maturity does not exceed five (5) years.

Q. Placement Service Deposits provided that: No more than 30% of the total portfolio may be invested in a combination of qualify ing placement service deposits, including CDARS; Under a provision sunsetting on J anuary 1, 2031, no more than 50% of the portfolio may be invested in deposits through a pl acement service, including Certificates of Deposit, if the Agency is a city, district or local agency that does not pool money with other local agencies. The maximum maturity does not exceed five (5) years.

R. Collateralized Bank Deposits. The City’s deposits with financial institutions will be collateralized with pledged securities per California Government Code, Section 53651.

There are no limits on the dol lar amount or percentage that the City may invest in collateralized bank deposits.

S. Shares of Beneficial Inte rest Issued by A Joint Powers Authority (JPA) , provided that: The JPA is organized pursuant to California Government Code Section 6509.7 and invests in the securi ties and obligations authorized in subdivisions (a) to (r), inclusive. Each share shall represent an equal proportional interest in the underlying pool 87 City of Murrieta Investment Policy Page 7
of securities owned by the JPA. The JPA has retained an investment advisor who is registered with the SEC (or exempt from registration), has assets under management in excess of $500 million, and has at least five years’ experience investing in instruments authorized by Section 53601, subdivisions (a) to (q).

Summary of Allowable Investments

State Code CGC 53601 City of Murrieta Policy
Max % Required Max % Required
Investment Type Maturity Limit Rating Maturity Limit Rating

US Treasury

5 years

None

None

5 years

None

None
US Agency 5 years None None 5 years None None
US Instrumentality 5 years N one None 5 years None None Mortgage and Asset Backed 5 years 20% “AA” 5 years 20% “AA” Securities2
Repurchase Agreement4 1 year None None 1 year 20% None
Commercial Paper1 270 days 25% 7 A-1/P-1 270 days 25% 7 A-1/P-1 Bankers Acceptances1 180 days 40% A-1/P-1 180 days 30% A-1/P-1 Corporate Notes1 5 years 30% “A” 5 years 30% “A”
Supranational1 5 years 30% “AA” 5 years 30% “AA”
LAIF N/A LAIF None N/A LAIF None
Max Max
Cal. Local Agency1 5 years None None 5 years 30% “A”
State Bonds1 5 years None None 5 years 30% ”A”
Money Market Fund3 N/A 20% Multiple N/A 20% “AAA”
Mutual Fund3 N/A 20% Multiple N/A 20% Multiple
Negotiable CDs5 5 years 30% None 5 years 30% A-1/P-1
FDIC Insured TD6 5 years None None 5 years 20% None
Time Deposits (TD)6 5 years None None 5 years 20% “A”
Placement Deposit Services5 5 years 50% None 5 years 50% None Joint Powers Authority (JPA) N/A None None

N/A None None
1) All non-federal governmental securities are limited to no more than 5% per issuer, with the exception of money market funds, mutual funds, supranationals, LAIF, or unless otherwise specified in this investment policy. 2) Total of all asset backed and mortgage backed securities may not exceed 20% of the portfolio. 3) Money Market Funds must be rated “AAA” by two NRSROs, no fund can have more than 10% of the portfolio and the total of all money market and mutual funds cannot exceed 20% of the portfolio. 4) Securities held as collateral must have a value that is more than 102% of the funds invested in the repo. 5) No more than 30% of the total portfolio may be invested in NCDs (combined with Placement Deposit Services) 6) No more than 20% of the portfolio will be invested in a combination of federally insured and collateralized time deposits 7) Under a provision sunsetting on January 1, 2026, no more than 40% of the portfolio may be invested in Commercial Paper if the Agency’s investment assets under management are greater than $100,000,000. 88 City of Murrieta Investment Policy Page 8
VIII – MITIGATING CREDIT RISK IN THE PORTFOLIO

Credit risk is the risk that a security or a por tfolio will lose some or all its value due to a real or perceived change in the ability of the issuer to repay its debt. The City will mitigate credit risk by adopting the following strategies:
 The diversification requirements include d in the “Authorized Securities and Transactions” section of this policy ar e designed to mitigate credit risk in the portfolio.

 The City may elect to sell a security prior to its maturity and record a capital gain or loss in order to manage the quality, liquidity or yield of the portfolio in response to market conditions or City’s risk preferences.

 If a security owned by the City is downgr aded to a level below the requirements of this policy, making the security ineligib le for additional purchases, the following steps will be taken:

o Any actions taken related to the do wngrade by the investment manager will be communicated to the Treasurer in a timely manner.

o If a decision is made to retain the security, the credit situation will be monitored and reported to the City Council.

The foregoing list of authorized securities a nd transactions shall be strictly interpreted.

Any deviation from the list must be preapproved by the City Council.

IX – PROHIBITED INVESTMENT VEHICLES AND TRANSACTIONS

 State law notwithst anding, any investments not s pecifically described herein are prohibited, including, but not limited to futures and options.  In accordance with California Government Code, Section 53601.6, investment in inverse floaters, range notes, or mortgage-derived interest-only strips is prohibited.  Investment in any security that could resu lt in a zero interest accrual if held to maturity is prohibited. Under a provision sunsetting on January 1, 2026, securities backed by the U.S. Government that could result in a zero- or negative-interest accrual if held to maturity are permitted.
 Trading securities for the sole purpose of speculating on the future direction of interest rates is prohibited.
 Purchasing or selling securities on margin is prohibited.  The use of reverse repurchase agreements, securities lending or any other form of borrowing or leverage is prohibited.
 The purchase of foreign currency denom inated securities is prohibited.  Securities with forward settlement date exceeding 45 days from the time of the investment is prohibited.
89 City of Murrieta Investment Policy Page 9

X - INVESTMENT DIVERSIFICATION

The City shall diversify the portfolio to avoid incurring unreasonable risks inherent in over investing in specific instruments, individual financial institutions or maturities. The asset allocation in the portfolio should, however, be flexible depending upon the outlook for the economy, the securities market, and the City’s anticipated cash flow needs.

XI - PORTFOLIO MATURITIES AND LIQUIDITY

To the extent possible, investments s hall be matched with anticipated cash flow requirements and known future liabilities. The Cit y will not invest in securities maturing more than five years from t he date of trade settlement, unl ess the City Council has by resolution granted authority to make such an investment at least three months prior to the date of the investment.

XII - SELECTION OF BROKERS/DEALERS

The Treasurer shall maintain a list of broker/dealers approv ed for investment purposes, and it shall be the policy of the City to purc hase securities only from those brokers and the firms they represent. Each approved br oker/dealer must possess an authorizing certificate from the California Commissioner of Corpor ations as required by Section 25210 of the California Corporations Code. The firms they represent must:

1. be recognized as Primary Dealers by the Federal Rese rve Bank of New York or have a primary dealer within their holding company structure, or

2. report voluntarily to the Federal Reserve Bank of New York, or

3. qualify under Securities and Exchange Commission (SEC) Rule 15c3-1 (Uniform Net Capital Rule).

The City may engage the services of invest ment advisory firms to assist in the management of the portfolio and investment advisors may utilize their own list of approved Broker/Dealers. Such Broker/Dealers will comply with the selection criteria above and the list of approved firms shall be provided to the City on an annual basis or upon request.

In the event that an exter nal investment advisor is not used in the process of recommending a particular transaction in the City’s portfolio each authorized broker/dealer shall be required to s ubmit and annually update a City approved Broker/Dealer Information Reque st form that includes the firm's most recent financial statements.

The City may purchase Commercial Paper from direct issuers even though they are not on the approved broker/dealer list as long as t hey meet the criteria outlined in Item F of the Authorized Securities and Transactions section of this Policy. 90 City of Murrieta Investment Policy Page 10
XIII – COMPETITIVE TRANSACTIONS

All investment transactions shall be conducted competitively with authorized broker/dealers. At least thre e broker/dealers shall be contacted for each transaction and their bid or offering prices shall be recor ded. When purchasing original issue securities, no competitive offerings will be required as a ll dealers in the selling group offer at the same new issue price.

If the City is offered a security for which t here is no other readily available competitive offering, then the Treasurer will document quot ations for comparable or alternative securities.

XIV - SAFEKEEPING AND CUSTODY

To protect against potential losses due to failure of individual securities dealers, and to enhance access to securities, interest paym ents and maturity proceeds, all cash and securities in the City’s portfolio shall be held in safekeeping in the City’s name by a third party custodian, acting as agent for the Cit y under the terms of a custody agreement executed by the bank and the City. All investment transactions will require a safekeeping receipt or acknowledgment generated from the trade. A monthly report will be received by the City from the custodian listing all securities held in safekeeping with current market data and other information.

The only exceptions to the foregoing sha ll be depository accounts and securities purchases made with: (i) local government investment pools; ( ii) time certificates of deposit, and (iii) mutual funds and money market mutual funds, since these securities are not deliverable.

The purchase and sale of securities and repurchase agreement transactions shall be settled on a delivery-versus-payment basis.

XV - PORTFOLIO PERFORMANCE

The portfolio shall be designed to attain a market rate of return throughout budgetary and economic cycles, taking into account prevaili ng market conditions, risk constraints for eligible securities, and cash flow requirements. The performance of the portfolio shall be compared to the performance of the ICE BofAML 1-3 year Treasury Index. The duration of the portfolio will be approximately equal (+/- 20%) of the benchmark.

XVI - REPORTING

Monthly transaction reports wil l be submitted by the Treasur er to the City Council in accordance with California Government Code Section 53607.

Quarterly, the Treasurer sha ll submit to the City Council a report of the investment earnings and performance results of the po rtfolio within 45 days after the end of the quarter. The report shall include the following information:
91 City of Murrieta Investment Policy Page 11

1. Investment type, issuer, date of maturi ty, par value and dollar amount invested in all securities, and investments and monies held by the City;

2. A description of the f unds, investments or progr ams under the management of contracted parties, including securities lending programs;

3. A market value as of the dat e of the report (or the most recent valuation as to assets not valued monthly) and the source of the valuation;

4. Overall portfolio yield based on historical cost;

5. Weighted average maturity;

6. A statement of the portfolio’s compliance with this Investment Policy or an explanation for non-compliance; and

7. A statement of the ability or inability to meet expenditure requirements for six months, as well as an explanation of why money will not be available if that is the case.

XVII - POLICY REVIEW

This Investment Policy shall be adopted by resolution of the City Council annually. It shall be reviewed at least annually to ensure its consistency with the ov erall objectives of preservation of principal, liquidity, yield and diversification and its relevance to current law and economic trends. Any amendments to this In vestment Policy shall be forwarded to the City Council for approval.

GLOSSARY OF INVESTMENT TERMS

AGENCIES. Shorthand market terminology for any obligation issued by a government- sponsored entity (GSE), or a federally related institution. Most obligations of GSEs are not guaranteed by the fu ll faith and credit of the US government. Examples are:

FFCB. The Federal Farm Credit Bank System provides credit and liquidity in the agricultural industry. FFCB issues discount notes and bonds.

FHLB. The Federal Home Loan Bank provides credit and liquidity in the housing market. FHLB issues discount notes and bonds.

FHLMC. Like FHLB, the Federal Home Loan Mortgage Corporation provides credit and liquidity in the housing market. FHLMC, also called “Freddie Mac”, issues discount notes, bonds and mortgage pass-through securities.

FNMA. Like FHLB and Freddie Mac, the Feder al National Mortgage Association was established to provide credit and liquidity in the housing market. FNMA, also known as “Fannie Mae,” issues discount notes, bonds and mortgage pass- through securities.

GNMA. The Government National Mortgage Association, known as “GinnieMae,” issues mortgage pass-through securities, which are guaranteed by the full faith and credit of the US Government.

PEFCO. The Private Export Funding Corporation assists exporters. Obligations of PEFCO are not guaranteed by the full faith and credit of the US government.

TVA. The Tennessee Valley Authority prov ides flood control and power and promotes development in portions of the Tennessee, Oh io, and Mississippi River valleys. TVA currently issues discount notes and bonds. 92 City of Murrieta Investment Policy Page 12
ASSET BACKED SECURITIES. Securities supported by pools of installment loans or leases or by pools of revolving lines of credit.

BANKER’S ACCEPTANCE. A money market instrument creat ed to facilitate international trade transactions. It is highly liquid and safe because the risk of the trade transaction is transferred to the bank which “accepts” the obligation to pay the investor.

BENCHMARK. A comparison security or portfolio. A performance benchmark is a partial market index, which reflects the mix of securities allowed under a specific investment policy.

BROKER. A broker brings buyers and sellers together for a transaction for which the broker receives a commission. A broker does not sell securities from his own position.

CALLABLE. A callable security gives the issuer the opt ion to call it from the investor prior to its maturity. The main cause of a call is a decline in interest rates. If interest rates decline, the issuer will likely call its cu rrent securities and reissue them at a lower rate of interest.

CERTIFICATE OF DEPOSIT (CD). A time deposit with a specific maturity evidenced by a certificate.

COLLATERAL. Securities or cash pledged by a borrower to secure repayment of a loan or repurchase agreement. Also, securities pledged by a financial institution to secure deposits of public monies.

COLLATERALIZED BANK DEPOSIT. A bank deposit that is coll ateralized at least 100% (principal plus interest to maturity). The deposit is collateralized using assets set aside by the issuer such as Treasury secu rities or other qualified collateral to secure the deposit in excess of the limit covered by the Federal Deposit Insurance Corporation.

COLLATERALIZED MORTGAGE OBLIGATIONS (CMO). Classes of bonds that redistribute the cash flows of mortgage securities (and whole loans) to create securities that have different levels of prepayment risk, as compared to the underlying mortgage securities.

COLLATERALIZED TIME DEPOSIT. Time deposits that are collateralized at least 100% (principal plus interest to maturity). These instruments are collateralized using assets set aside by the issuer such as Treasury securities or other qualified collateral to secure the deposit in excess of the limit covered by the Federal Deposit Insurance Corporation.

COMMERCIAL PAPER. The short-term unsecured debt of corporations.

COUPON. The rate of return at which interest is paid on a bond.

CREDIT RISK. The risk that principal and/or interest on an investment will not be paid in a timely manner due to changes in the condition of the issuer.

DEALER. A dealer acts as a principal in security transactions, selling securities from and buying securities for his own position.

DELIVERY VS . PAYMENT (DVP). A securities industry proc edure whereby payment for a security must be made at the time the security is delivered to the purchaser’s agent.

DERIVATIVE. Any security that has principal and/or interest payments which are subject to uncertainty (but not for reasons of default or credit risk) as to timing and/or amount, or any security which represents a component of another security which has been separated from other components (“Stripped” coupons and principal). A derivative is also defined as a financial instrument the value of whic h is totally or partially derived from the value of another instrument, interest rate, or index. 93 City of Murrieta Investment Policy Page 13
DISCOUNT. The difference between the par value of a bond and the cost of the bond, when the cost is below par. Some short-term securities, such as T-bills and banker’s acceptances, are known as discount securi ties. They sell at a discount from par and return the par value to the investor at maturity without additional interest. Other securities, which have fixed coupons, trade at a discount when the coupon rate is lower than the current market rate for securities of that maturity and/or quality.

DIVERSIFICATION. Dividing investment funds among a va riety of investments to avoid excessive exposure to any one source of risk.

DURATION. The weighted average time to maturity of a bond where the weights are the present values of the future cash flows. Duration measures the price sensitivity of a security to changes interest rates.

FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC). The Federal Deposit Insurance Corporation (FDIC) is an independent federal agency in suring deposits in U.S. banks and thrifts in the event of bank failu res. The FDIC was created in 1933 to maintain public confidence and encourage stability in the financial system through the promotion of sound banking practices.

FEDERALLY INSURED TIME DEPOSIT. A time deposit is an inte rest-bearing bank deposit account that has a specified date of maturity, such as a certificate of deposit (CD).

These deposits are limited to funds insu red in accordance with FDIC insurance deposit limits.

FIDUCIARY. A person or organization that acts on behalf of another person(s) or organization that puts their clients’ interest ahead of their own, as they are bound both legally and ethically to act in the best interests of their clients.

LEVERAGE. Borrowing funds in order to invest in securities that have the potential to pay earnings at a rate higher than the cost of borrowing.

LIQUIDITY. The speed and ease with which an asset can be converted to cash.

LOCAL AGENCY INVESTMENT FUND (LAIF). A voluntary investment fund open to government entities and certain non-profit organizations in California that is managed by the State Treasurer’s Office.

LOCAL GOVERNMENT INVESTMENT POOL. Investment pools that range from the State Treasurer’s Office Local Agency Investment Fund (LAIF) to county pools, to Joint Powers Authorities (JPAs). These funds are not subject to the same SEC rules applicable to money market mutual funds.

MAKE WHOLE CALL. A type of call provision on a bond that allows the issuer to pay off the remaining debt early. Unlike a call option, with a make whole call provision, the issuer makes a lump sum payment that equals the net present value (NPV) of future coupon payments that will not be paid because of the call. With this type of call, an investor is compensated, or "made whole."
MARGIN. The difference between the market value of a security and the loan a broker makes using that security as collateral.

MARKET RISK. The risk that the value of securities will fluctuate with changes in overall market conditions or interest rates.

MARKET VALUE. The price at which a security can be traded.

MATURITY. The final date upon which the principal of a security becomes due and payable.

The investment’s term or remaining maturity is measured from the settlement date to final maturity.

MEDIUM TERM NOTES. Unsecured, investment-grade seni or debt securities of major corporations which are sold in relative ly small amounts on eith er a continuous or an intermittent basis. MTNs are highly fl exible debt instruments that can be structured to respond to market opportunities or to investor preferences. 94 City of Murrieta Investment Policy Page 14
MODIFIED DURATION. The percent change in price for a 100-basis point change in yields.

Modified duration is the best single measure of a portfolio’s or security’s exposure to market risk.

MONEY MARKET. The market in which short-term debt instruments (T-bills, discount notes, commercial paper, and banker’s acceptances) are issued and traded.

MONEY MARKET MUTUAL FUND. A mutual fund that invests exclusively in short-term securities. Examples of investments in money market funds ar e certificates of deposit and U.S. Treasury securities. Money market funds attempt to keep their net asset values at $1 per share.

MORTGAGE PASS-THROUGH SECURITIES. A securitized participation in the interest and principal cash flows from a specif ied pool of mortgages. Principal and interest payments made on the mortgages are passed through to the holder of the security.

MUNICIPAL SECURITIES. Securities issued by state and local agencies to finance capital and operating expenses.

MUTUAL FUND. An entity which pools the funds of in vestors and invests those funds in a set of securities which is specifically defined in the fund’s prospectus. Mutual funds can be invested in various types of dom estic and/or international stocks, bonds, and money market instruments, as set forth in the individual fund’s prospectus. For most large, institutional in vestors, the costs associated with investing in mutual funds are higher than the investor c an obtain through an individually managed portfolio.

NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION (NRSRO).

A credit rating agency that the Securities and Exchange Commission in the United States uses for regulatory purposes. Cr edit rating agencies provide assessments of an investment's risk. The issuers of investments, especially debt securities, pay credit rating agencies to provide them with ratings. The three most prominent NRSROs are Fitch, S&P, and Moody's.

NEGOTIABLE CERTIFICATE OF DEPOSIT (CD). A short-term debt instrument that pays interest and is issued by a bank, savings or federal association, state or federal credit union, or state-licensed branch of a foreign bank. N egotiable CDs are traded in a secondary market.

OFFER (ASK). An indicated price at which market participants are willing to sell a security.

Also referred to as the “ask price”.

PLACEMENT SERVICE DEPOSITS. A private service that allows local agencies to invest in FDIC-insured deposits with one or more banks, savings and loans, and credit unions located in the United States. In traFi (formerly known as CDARS) is an example of an entity that provides this service.

PRIMARY DEALER. A financial institution (1) that is a trading counterparty with the Federal Reserve in its execution of market operat ions to carry out U. S. monetary policy, and (2) that participates for statistical reporting purposes in compiling data on activity in the U.S. Government securities market.

PRUDENT PERSON (PRUDENT INVESTOR) RULE. A standard of responsibility which applies to fiduciaries. In California, the rule is stated as “Investments shall be managed with the care, skill, prudence and diligence, under the circumstances then prevailing, that a prudent person, acting in a like capacity and familiar with such matters, would use in the conduct of an enterprise of like character and with like aims to accomplish similar purposes.”
95 City of Murrieta Investment Policy Page 15
REPURCHASE AGREEMENT. Short-term purchases of securities with a simultaneous agreement to sell the securities back at a higher price. From the seller’s point of view, the same transaction is a reverse repurchase agreement.

SAFEKEEPING. A service to bank customers whereby securities are held by the bank in the customer’s name.

SECURITIES AND EXCHANGE COMMISSION (SEC). The U.S. Securities and Exchange Commission (SEC) is an independent federal government agency responsible for protecting investors, maintaining fair and orderly functioning of securities markets and facilitating capital formation. It was created by Congress in 1934 as the first federal regulator of securities markets. The SEC promotes fu ll public disclosure, protects investors against fraudulent and manipulative practices in the market, and monitors corporate takeover actions in the United States.

SECURITIES AND EXCHANGE COMMISSION SEC) RULE 15C3-1. An SEC rule setting capital requirements for brokers and dealers. Under Rule 15c3-1, a broker or dealer must have sufficient liquidity in order to cove r the most pressing obligations. This is defined as having a certain amount of liquidity as a percentage of the broker/dealer's total obligations. If the percentage falls below a certain point, the broker or dealer may not be allowed to take on new clients and may have restrictions placed on dealings with current client.

STRUCTURED NOTE. Notes issued by Government Sponsored Enterprises (FHLB, FNMA, etc.) and Corporations, which have imbedded options (e.g., call features, step-up coupons, floating rate coupons, derivative-based returns) into their debt structure.

Their market performance is impacted by t he fluctuation of interest rates, the volatility of the imbedded options and shifts in the shape of the yield curve.

SUPRANATIONAL. A Supranational is a multi-national organization whereby member states transcend national boundaries or interests to share in the decision making to promote economic development in the member countries.

TOTAL RATE OF RETURN. A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginn ing value of the portfolio with the ending value; it includes interest earnings, rea lized and unrealized gains, and losses in the portfolio.

U.S. TREASURY OBLIGATIONS. Securities issued by the U.S. Treasury and backed by the full faith and credit of t he United States. Treasuries are considered to have no credit risk and are the benchmark for interest rates on all other securities in the US and overseas. The Treasury issues both di scounted securities and fixed coupon notes and bonds.

TREASURY BILLS. All securities issued with initial maturities of one year or less are issued as discounted instruments and are called Treasury bills. The Treasury currently issues three- and six-month T-bills at regular weekly auctions. It also issues “cash management” bills as needed to smooth out cash flows.

TREASURY NOTES. All securities issued with initial maturities of two to ten years are called Treasury notes and pay interest semi-annually.

TREASURY BONDS. All securities issued with initial maturities greater than ten years are called Treasury bonds. Like Treasury notes, they pay interest semi-annually.

YIELD TO MATURITY. The annualized internal rate of return on an investment which equates the expected cash flows from the investment to its cost. 96 City of Murrieta Investment Policy Page 1

I - INTRODUCTION

The City Council of the City of Murrieta (City) has adopted this Investment Policy (Policy) in order to establish the investment scope, objectives, delegation of authority, standards of prudence, reporting require ments, internal controls, eligible investments and transactions, diversification requirements, risk tolerance, and safekeeping and custodial procedures for the investment of the funds of the City. All su ch funds will be invested in accordance with this Policy and with applicabl e sections of the California Government Code. This Policy was endorsed and adopted by the City and is effective as of the 3rd 2nd day of December 20242025, and replaces any previous versions.

II - SCOPE

This Policy applies to all operating funds of the City. Non-operating funds may be subject to other prevailing documents, such as a governing bond indenture. This policy excludes Employees Retirement and Deferred Compensation Funds. Additional funds that may be created from time to time shall be added to t he City’s investment portfolio (portfolio) and managed in accordance with the provisions of this Policy.

All cash shall be pooled for investment purpos es. The investment income derived from the pooled investment account shall be alloca ted to the contributing funds based upon the proportion of the respective average balances relative to the total pooled balance in the portfolio. Investment income shall be dist ributed to the individual funds not less than annually.

III - OBJECTIVES

The City’s funds shall be invested in accordance with the City’s Municipal Code and all applicable State statutes and Federal r egulations, and in a manner designed to accomplish the following objectives, which are listed in priority order:

1. Preservation of capital and prot ection of investment principal.

2. Maintenance of sufficient liquidi ty to meet anticipated cash flows.

3. Attainment of a market value rate of return.

4. Diversification to avoid in curring unreasonable market risks.

IV - DELEGATION OF AUTHORITY

The management responsibility for the City’s investment program is delegated by the City Council to the Treasurer pursuant to Ca lifornia Government Code Section 53607 and Section 2.20.030 of the City’s Municipal Code. The City Manager serves as the Treasurer.

The Treasurer has delegated the authority to conduct investment transactions

CITY OF MURRIETA

INVESTMENT POLICY
97 City of Murrieta Investment Policy Page 2
and to manage the operation of the portfolio to the Finance Director. These officers shall meet regularly to discuss economic and market conditions, and to plan investment strategy to meet the City’s fiscal objecti ves. No person may engage in an investment transaction except as expressly provided under the terms of this Policy.

V - PRUDENCE

The standard of prudence to be used for m anaging the City’s investments shall be California Government Code Section 53600. 3, the prudent invest or standard, which states that “When investing, reinvesting, purchasing, acqui ring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then preva iling, including, but not limit ed to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters w ould use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency.”

The City’s overall investment program shall be designed and managed with a degree of professionalism that is worthy of the public trust. The City recognizes that no investment is totally without risk and that the investment ac tivities of the City are a matter of public record. Accordingly, the City recognizes that occasional measured losses may occur in a diversified portfolio and shall be considered wit hin the context of the overall portfolio’s return, provided that adequate diversification has been implemented and that the sale of a security is in the best long-term interest of the City.

If, due to market changes or fluctuations in the size of the City’s portfolio, a percentage of portfolio limitation is exceeded, the affected securities may be held to their maturity if the Treasurer believes it is prudent to do so.

The Treasurer and authorized in vestment personnel exercisi ng due diligence shall be relieved of personal responsibility for an indivi dual security’s credit risk or market price changes, provided that the deviations from expec tations are reported in a timely fashion to the City Council and appropriate action is taken to control adverse developments.

VI - ETHICS AND CONFLICTS OF INTEREST

Elected officials and employees involved in the City’s investment program shall refrain from personal business activity that could conflict with proper execution of the investment program or that could impair or create the appearance of an impairment of their ability to make impartial investment decisions. These individuals shall disclose to the City Manager any material interests they have in financial institutions that conduct business with the City and they shall subordinate their personal investment transactions to those of the City.

The Treasurer and the Finance Director shall file a Statement of Economic Interests each year pursuant to California Government Code Section 87203 and regulations of the Fair Political Practices Commission.
98 City of Murrieta Investment Policy Page 3

VII - AUTHORIZED SECURITIES AND TRANSACTIONS

All investments and deposits of the City shall be made in accordance with California Government Code Sections 16429.1, 53600-53609 and 53630-53686, except that, pursuant to California Government Code Se ction 5903(e), proceeds of bonds and any moneys set aside or pledged to secure paym ent of the bonds may be invested in securities or obligations described in the ordinance, resolution, indenture, agreement, or other instrument providing for the issuance of the bonds. Any revisions or extensions of the above referenced code sections will be assumed to be part of this Policy immediately upon being enacted. However, in the event that amendments to these sections conflict with this Policy and past City investment prac tices, the City may delay adherence to the new requirements when it is deemed in the bes t interest of the Cit y to do so. In such instances, after consultation with the City’ s attorney, the Treasurer will present a recommended course of action to the City Council for approval. Percentage holding limits and credit quality minimums listed in this sect ion apply at the time the security is purchased.

The City has further restricted the eligible types of securities and transactions as follows:

A. United States Treasury bills, bonds, and notes with a final maturity not exceeding five years from the date of trade settlement. There is no limitation as to the percentage of the portfolio that can be invested in this category.

B. Federal Agency Obligations for which the faith and credit of the United States are pledged for the payment of principal and interest, and which have a final maturity not exceeding five years from the date of trade settlement. There is no limitation as to the percentage of the portfolio that can be invested in this category.

C. Federal Instrumentality (government sponsored enterprise) debentures, discount notes, callable securities and step- up securities with a final maturity not exceeding five years from the date of trade settlement. No more than 30% of the portfolio may be invested in any single Federal In strumentality/GSE issuer. The maximum percentage of callable agency securities in the portfolio is 20%.

D. Mortgage-backed Securities, Collateralized Mortgage Ob ligations and Asset- backed Securities limited to mortgage-backed pass-through securities issued by a US government agency or consumer receivable pa ss-through certificates or bonds with a final maturity not exceeding fi ve years from the date of tr ade settlement. The securities are rated in a rating categor y of “AA” or its equivalent or higher by a NRSRO. The aggregate investment in mortgage-backed and asset-backed securities described in this section shall not exceed 20% of the portfolio with no more than 5% held in any one issuer that is not a US government agency.

E. Repurchase Agreements with a final termination date not exceeding one year collateralized with securities authorized un der California Government Code. For the purpose of this section, the term collatera l shall mean purchased securities under the terms of the City’s approved Master Repurchase Agreement. The purchased securities shall have a minimum market value including accrued interest of 102% of the dollar value 99 City of Murrieta Investment Policy Page 4
of the funds borrowed. Coll ateral shall be hel d in the City’s cu stodian bank, as safekeeping agent, and the market value of the collateral securities shall be marked-to- the-market daily.

Repurchase Agreements shall be entered in to only with broker/dealers who are recognized as Primary Dealers by the Federal Reserve Bank of New York or with firms that have a primary dealer wit hin their holding company structure. The Treasurer shall maintain a copy of the City's approved Master Repurchase Agreement along with a list of the broker/dealers who have executed same.

The aggregate investment in Repurchase Ag reements shall not exceed 20% of the portfolio.

F.E. Prime Commercial Paper with a maturity not exc eeding 270 days from the date of trade settlement with the highest ranking or of the highest le tter and number rating assigned by a NRSRO. The entity that issues the commercial paper shall meet all of the conditions in either sub-paragraph 1) or sub-paragraph 2) below:

1) The entity shall (a) be organized and operat ing in the United St ates as a general corporation, (b) have total assets in excess of $500,000,000, and (c) have debt other than commercial paper, if an y, that is rated in a ra ting category of “A” or its equivalent or higher by a NRSRO.
2) The entity shall (a) be organized withi n the United States as a special purpose corporation, trust, or lim ited liability company, (b) have program-wide credit enhancements, including, but not limited to, over collateralization, letters of credit or surety bond and (c) have commercial paper that is rated in a rating category of “A-1” or its equivalent or higher by a NRSRO.

Not more than 5% of the portfolio may be invested in the commercial paper and medium- term notes of any issuer and the aggregate in vestment in commercial paper shall not exceed 25% of the portfolio. Under a provis ion sunsetting on January 1, 2026, no more than 40% of the portfolio may be invested in Commercial Paper if the Agency’s investment assets under management are greater than $100,000,000.

G.F. Eligible Bankers Acceptances issued by Federal Deposit Insurance Corporation (FDIC) insured commercial banks, rated at least “A-1” or the equivalent by a NRSRO with maturities not exceeding 180 days from the date of trade settlement. If issuers have senior debt outstanding, it shall be rated in a rating category of “A” or its equivalent or higher by a NRSRO. No more than 5% of th e portfolio shall be invested in bankers acceptances of any one commercial bank, and the aggregate investment in bankers acceptances shall not exceed 30% of the portfolio.

H. Medium-Term Notes issued by corporations organi zed and operating within the United States or by depository institutions licensed by the United States or any state and operating within the Unit ed States. Medium-Term Notes shall have a final maturity not exceeding five years from t he date of trade settlement and must be rated in a rating category of “A” or its equivalent or higher by a NRSRO at the time of purchase. Not more than 5% of the City’s total portfolio shall be invested in the Medium-Term Notes and 100
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commercial paper of any one issuer and the aggregate investment in Medium-Term Notes may not exceed 30% of the portfolio.

I.G. Supranational Securities that are United States dollar denominated senior unsecured unsubordinated obli gations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank, with a maximum remaining maturity of five years or less, and eligible for purchase and sale withi n the United States.

Investments under this subdivision shall be ra ted in a rating categor y of “AA” or its equivalent or higher by a NRSRO and shall not exceed 30% of the portfolio with no more than 10% invested in any one issuer.

J.H. State of California’s Local Agency Investment Fund (LAIF), The City may invest up to the maximum amount permitted by LAIF, pursuant to California Government Code Section 16429.1. LAIF’s investments in instruments prohibited by or not specified in the City’s policy do not exclude the investment in LAIF itself from the City’s list of allowable investments, provided LAIF’s reports allow the Treasurer to adequately judge the risk inherent in LAIF’s portfolio.

K.I. Municipal Bonds , State of California registered warrants or treasury notes or bonds, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the state or by a department, board, agency, or authority of the state.

Registered treasury notes or bonds of any of the other 49 states in addition to California, including bonds payable solely out of t he revenues from a rev enue producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 states, in addition to California.

Bonds, notes, warrants, or other evidences of indebtedness of a local agency within California including bonds payable solely out of the revenues fr om a revenue-producing property owned, controlled, or operated by the local agency, or by a department, board, agency, or authority of the local agency.

In addition, these securities must be rated in a rating category of “A” or its equivalent or higher by a NRSRO with maturities not exc eeding five years from the date of trade settlement. No more than 5% of the portfolio shall be invested in any one municipal issuer and the aggregate investment in municipal bonds shall not exceed 30% of the portfolio.

L.J. Money Market Funds registered under the Investment Company Act of 1940 that are (1) “no-load” (meaning no commission or fee shall be charged on purchases or sales of shares); (2) have a constant net asset value per share of $1.00; (3) invest only in the securities and obligations aut horized in the applicable Califo rnia statute; and (4) have a rating in a rating category of “AAA” or its equivalent by at least two NRSROs. Investment in any individual fund may not exceed 10% of the fund, and the aggregate investment in any combination of Money Market Funds and Mutual Funds shall not exceed 20% of the portfolio.
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M.K. Mutual Funds registered under the Investment Company Act of 1940 that are (1) “no-load” (meaning no commission or fee s hall be charged on purchases or sales of shares); (2) invest only in the securities and obligations authorized in the applicable California statute; and (3) have a rating in a ra ting category of “AAA” or its equivalent by at least two NRSROs. The investment in an y individual Mutual Fund shall not exceed 10% of the portfolio. In addition, investment in any individual fund may not exceed 10% of the fund, and the aggregate investment in any combination of Mutual Funds and money market funds shall not exceed 20% of the portfolio.

N.L. Negotiable Certificates of Deposit (NCDs) , issued by a nationally or state- chartered bank, a savings associ ation or a federal associati on, a state or federal credit union, or by a federally licensed or state-licensed branch of a foreign bank, provided that:

The amount of the NCD insured up to the FDIC limit does not require any credit ratings; Any amount above the FDIC insured limit must be issued by institutions which have short- term debt obligations rated “A-1” or its equiva lent or better by at least one NRSRO; or long-term obligations rated in a rating category of “A” or its equivalent or higher by at least one NRSRO; No more than 30% of the total portfolio may be invested in NCDs (combined with CDARS); No more than 5% of the portfolio may be invested in any single issuer; The maximum maturity does not exceed five (5) years.

O.M. Federally Insured Time Deposits (Non- Negotiable Certificates of Deposit) in state or federally chartered banks, savings and loans, or credit unions, provided that: (1) The amount per institution is limited to the maximum covered under federal insurance; (2) No more than 20% of the portf olio will be invested in a combi nation of federally insured and collateralized time deposits; and (3) The maximum maturity does not exceed five (5) years.

P.N. Collateralized Time Deposits (Non-Negotiable Certificates of Deposit) in state or federally chartered banks, savings and loans, or credit unions in excess of insured amounts which are fully collateralized with se curities in accordance with California law, provided that: No more than 20% of the por tfolio will be invested in a combination of federally insured and collateralized time deposits; The maximum maturity does not exceed five (5) years.

Q.O. Certificate of Deposit Placement Service Deposits (CDARS) provided that: No more than 30% of the total portfolio may be invested in a combination of Certificates of Depositqualifying placem ent service deposits , including CDARS; Under a provision sunsetting on January 1, 2031, no more than 50% of the portfolio may be invested in deposits through a placement service, including Certificates of Deposit, if the Agency is a city, district or local agency that does not pool money with ot her local agencies. The maximum maturity does not exceed five (5) years.

R.P. Collateralized Bank Deposits. The City’s deposits with financial institutions will be collateralized with pledged securities per California Government Code, Section 53651.

There are no limits on the dol lar amount or percentage that the City may invest in collateralized bank deposits.

Q. Shares of Beneficial Interest Issued by A Joint Powers Authority (JPA) , provided that: The JPA is organized pursuant to California Government Code Section 102
City of Murrieta Investment Policy Page 7
6509.7 and invests in the securi ties and obligations authorized in subdivisions (a) to (r), inclusive. Each share shall represent an equal proportional interest in the underlying pool of securities owned by the JPA. The JPA has retained an investment advisor who is registered with the SEC (or exempt from registration), has assets under management in excess of $500 million, and has at least five years’ experience investing in instruments authorized by Section 53601, subdivisions (a) to (q).
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Summary of Allowable Investments

State Code CGC 53601 City of Murrieta Policy
Max % Required Max % Required
Investment Type Maturity Limit Rating Maturity Limit Rating

US Treasury

5 years

None

None

5 years

None

None
US Agency 5 years None None 5 years None None
US Instrumentality 5 years N one None 5 years None None Mortgage and Asset Backed 5 years 20% “AA” 5 years 20% “AA” Securities2
Repurchase Agreement4 1 year None None 1 year 20% None
Commercial Paper1 270 days 25% 7 A-1/P-1 270 days 25% 7 A-1/P-1 Bankers Acceptances1 180 days 40% A-1/P-1 180 days 30% A-1/P-1 Corporate Notes1 5 years 30% “A” 5 years 30% “A”
Supranational1 5 years 30% “AA” 5 years 30% “AA”
LAIF N/A LAIF None N/A LAIF None
Max Max
Cal. Local Agency1 5 years None None 5 years 30% “A”
State Bonds1 5 years None None 5 years 30% ”A”
Money Market Fund3 N/A 20% Multiple N/A 20% “AAA”
Mutual Fund3 N/A 20% Multiple N/A 20% Multiple
Negotiable CDs5 5 years 30% None 5 years 30% A-1/P-1
FDIC Insured TD6 5 years None None 5 years 20% None
Time Deposits (TD)6 5 years None None 5 years 20% “A”
CDARS5Placement Deposit
Services5
5 years 3050
%
None 5 years 3050% None
Joint Powers Authority (JPA) N/A None None

N/A None None
1) All non-federal governmental securities are limited to no more than 5% per issuer, with the exception of money market funds, mutual funds, supranationals, LAIF, or unless otherwise specified in this investment policy. 2) Total of all asset backed and mortgage backed securities may not exceed 20% of the portfolio. 3) Money Market Funds must be rated “AAA” by two NRSROs, no fund can have more than 10% of the portfolio and the total of all money market and mutual funds cannot exceed 20% of the portfolio. 4) Securities held as collateral must have a value that is more than 102% of the funds invested in the repo. 5) No more than 30% of the total portfolio may be invested in NCDs (combined with CDARSPlacement Deposit Services) 6) No more than 20% of the portfolio will be invested in a combination of federally insured and collateralized time deposits 7) Under a provision sunsetting on January 1, 2026, no more than 40% of the portfolio may be invested in Commercial Paper if the Agency’s investment assets under management are greater than $100,000,000. 104
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VIII – MITIGATING CREDIT RISK IN THE PORTFOLIO

Credit risk is the risk that a security or a por tfolio will lose some or all its value due to a real or perceived change in the ability of the issuer to repay its debt. The City will mitigate credit risk by adopting the following strategies:
 The diversification requirements include d in the “Authorized Securities and Transactions” section of this policy ar e designed to mitigate credit risk in the portfolio.

 The City may elect to sell a security prior to its maturity and record a capital gain or loss in order to manage the quality, liquidity or yield of the portfolio in response to market conditions or City’s risk preferences.

 If a security owned by the City is downgr aded to a level below the requirements of this policy, making the security ineligib le for additional purchases, the following steps will be taken:

o Any actions taken related to the do wngrade by the investment manager will be communicated to the Treasurer in a timely manner.

o If a decision is made to retain the security, the credit situation will be monitored and reported to the City Council.

The foregoing list of authorized securities a nd transactions shall be strictly interpreted.

Any deviation from the list must be preapproved by the City Council.

IX – PROHIBITED INVESTMENT VEHICLES AND TRANSACTIONS

 State law notwithst anding, any investments not s pecifically described herein are prohibited, including, but not limited to futures and options.  In accordance with California Government Code, Section 53601.6, investment in inverse floaters, range notes, or mortgage-derived interest-only strips is prohibited.  Investment in any security that could resu lt in a zero interest accrual if held to maturity is prohibited. Under a provision sunsetting on January 1, 2026, securities backed by the U.S. Government that could result in a zero- or negative-interest accrual if held to maturity are permitted.
 Trading securities for the sole purpose of speculating on the future direction of interest rates is prohibited.
 Purchasing or selling securities on margin is prohibited.  The use of reverse repurchase agreements, securities lending or any other form of borrowing or leverage is prohibited.
 The purchase of foreign currency denom inated securities is prohibited.  Securities with forward settlement date exceeding 45 days from the time of the investment is prohibited.
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X - INVESTMENT DIVERSIFICATION

The City shall diversify the portfolio to avoid incurring unreasonable risks inherent in over investing in specific instruments, individual financial institutions or maturities. The asset allocation in the portfolio should, however, be flexible depending upon the outlook for the economy, the securities market, and the City’s anticipated cash flow needs.

XI - PORTFOLIO MATURITIES AND LIQUIDITY

To the extent possible, investments s hall be matched with anticipated cash flow requirements and known future liabilities. The Cit y will not invest in securities maturing more than five years from t he date of trade settlement, unl ess the City Council has by resolution granted authority to make such an investment at least three months prior to the date of the investment.

XII - SELECTION OF BROKERS/DEALERS

The Treasurer shall maintain a list of broker/dealers approv ed for investment purposes, and it shall be the policy of the City to purc hase securities only from those brokers and the firms they represent. Each approved br oker/dealer must possess an authorizing certificate from the California Commissioner of Corpor ations as required by Section 25210 of the California Corporations Code. The firms they represent must:

1. be recognized as Primary Dealers by the Federal Rese rve Bank of New York or have a primary dealer within their holding company structure, or

2. report voluntarily to the Federal Reserve Bank of New York, or

3. qualify under Securities and Exchange Commission (SEC) Rule 15c3-1 (Uniform Net Capital Rule).

The City may engage the services of invest ment advisory firms to assist in the management of the portfolio and investment advisors may utilize their own list of approved Broker/Dealers. Such Broker/Dealers will comply with the selection criteria above and the list of approved firms shall be provided to the City on an annual basis or upon request.

In the event that an exter nal investment advisor is not used in the process of recommending a particular transaction in the City’s portfolio each authorized broker/dealer shall be required to s ubmit and annually update a City approved Broker/Dealer Information Reque st form that includes the firm's most recent financial statements.

The City may purchase Commercial Paper from direct issuers even though they are not on the approved broker/dealer list as long as t hey meet the criteria outlined in Item F of the Authorized Securities and Transactions section of this Policy. 106
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XIII – COMPETITIVE TRANSACTIONS

All investment transactions shall be conducted competitively with authorized broker/dealers. At least thre e broker/dealers shall be contacted for each transaction and their bid or offering prices shall be recor ded. When purchasing original issue securities, no competitive offerings will be required as a ll dealers in the selling group offer at the same new issue price.

If the City is offered a security for which t here is no other readily available competitive offering, then the Treasurer will document quot ations for comparable or alternative securities.

XIV - SAFEKEEPING AND CUSTODY

To protect against potential losses due to failure of individual securities dealers, and to enhance access to securities, interest paym ents and maturity proceeds, all cash and securities in the City’s portfolio shall be held in safekeeping in the City’s name by a third party custodian, acting as agent for the Cit y under the terms of a custody agreement executed by the bank and the City. All investment transactions will require a safekeeping receipt or acknowledgment generated from the trade. A monthly report will be received by the City from the custodian listing all securities held in safekeeping with current market data and other information.

The only exceptions to the foregoing sha ll be depository accounts and securities purchases made with: (i) local government investment pools; ( ii) time certificates of deposit, and (iii) mutual funds and money market mutual funds, since these securities are not deliverable.

The purchase and sale of securities and repurchase agreement transactions shall be settled on a delivery-versus-payment basis.

XV - PORTFOLIO PERFORMANCE

The portfolio shall be designed to attain a market rate of return throughout budgetary and economic cycles, taking into account prevaili ng market conditions, risk constraints for eligible securities, and cash flow requirements. The performance of the portfolio shall be compared to the performance of the ICE BofAML 1-3 year Treasury Index. The duration of the portfolio will be approximately equal (+/- 20%) of the benchmark.

XVI - REPORTING

Monthly transaction reports wil l be submitted by the Treasur er to the City Council in accordance with California Government Code Section 53607.

Quarterly, the Treasurer sha ll submit to the City Council a report of the investment earnings and performance results of the po rtfolio within 45 days after the end of the quarter. The report shall include the following information:
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1. Investment type, issuer, date of maturi ty, par value and dollar amount invested in all securities, and investments and monies held by the City;

2. A description of the f unds, investments or progr ams under the management of contracted parties, including securities lending programs;

3. A market value as of the dat e of the report (or the most recent valuation as to assets not valued monthly) and the source of the valuation;

4. Overall portfolio yield based on historical cost;

5. Weighted average maturity;

6. A statement of the portfolio’s compliance with this Investment Policy or an explanation for non-compliance; and

7. A statement of the ability or inability to meet expenditure requirements for six months, as well as an explanation of why money will not be available if that is the case.

XVII - POLICY REVIEW

This Investment Policy shall be adopted by resolution of the City Council annually. It shall be reviewed at least annually to ensure its consistency with the ov erall objectives of preservation of principal, liquidity, yield and diversification and its relevance to current law and economic trends. Any amendments to this In vestment Policy shall be forwarded to the City Council for approval.

GLOSSARY OF INVESTMENT TERMS

AGENCIES. Shorthand market terminology for any obligation issued by a government- sponsored entity (GSE), or a federally related institution. Most obligations of GSEs are not guaranteed by the fu ll faith and credit of the US government. Examples are:

FFCB. The Federal Farm Credit Bank System provides credit and liquidity in the agricultural industry. FFCB issues discount notes and bonds.

FHLB. The Federal Home Loan Bank provides credit and liquidity in the housing market. FHLB issues discount notes and bonds.

FHLMC. Like FHLB, the Federal Home Loan Mortgage Corporation provides credit and liquidity in the housing market. FHLMC, also called “Freddie Mac”, issues discount notes, bonds and mortgage pass-through securities.

FNMA. Like FHLB and Freddie Mac, the Feder al National Mortgage Association was established to provide credit and liquidity in the housing market. FNMA, also known as “Fannie Mae,” issues discount notes, bonds and mortgage pass- through securities.

GNMA. The Government National Mortgage Association, known as “GinnieMae,” issues mortgage pass-through securities, which are guaranteed by the full faith and credit of the US Government.

PEFCO. The Private Export Funding Corporation assists exporters. Obligations of PEFCO are not guaranteed by the full faith and credit of the US government.

TVA. The Tennessee Valley Authority prov ides flood control and power and promotes development in portions of the Tennessee, Oh io, and Mississippi River valleys. TVA currently issues discount notes and bonds. 108
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ASSET BACKED SECURITIES. Securities supported by pools of installment loans or leases or by pools of revolving lines of credit.

AVERAGE LIFE. In mortgage-related investments, in cluding CMOs, the average time to expected receipt of princi pal payments, weig hted by the amount of principal expected.

BANKER’S ACCEPTANCE. A money market instrument creat ed to facilitate international trade transactions. It is highly liquid and safe because the risk of the trade transaction is transferred to the bank which “accepts” the obligation to pay the investor.

BENCHMARK. A comparison security or portfolio. A performance benchmark is a partial market index, which reflects the mix of securities allowed under a specific investment policy.

BROKER. A broker brings buyers and sellers together for a transaction for which the broker receives a commission. A broker does not sell securities from his own position.

CALLABLE. A callable security gives the issuer the opt ion to call it from the investor prior to its maturity. The main cause of a call is a decline in interest rates. If interest rates decline, the issuer will likely call its cu rrent securities and reissue them at a lower rate of interest.

CERTIFICATE OF DEPOSIT (CD). A time deposit with a specific maturity evidenced by a certificate.

CERTIFICATE OF DEPOSIT ACCOUNT REGISTRY SYSTEM (CDARS). A private placement service that allows local agencies to purchase more than $250,000 in CDs from a single financial institution (must be a parti cipating institution of CDARS) while still maintaining FDIC insurance coverage. CDARS is currently the only entity providing this service. CDARS facilitates the trading of deposits betwe en the California institution and other participating institutions in amounts that are less than $250,000 each, so that FDIC coverage is maintained.

COLLATERAL. Securities or cash pledged by a borrower to secure repayment of a loan or repurchase agreement. Also, securities pledged by a financial institution to secure deposits of public monies.

COLLATERALIZED BANK DEPOSIT. A bank deposit that is coll ateralized at least 100% (principal plus interest to maturity). The deposit is collateralized using assets set aside by the issuer such as Treasury secu rities or other qualified collateral to secure the deposit in excess of the limit covered by the Federal Deposit Insurance Corporation.

COLLATERALIZED MORTGAGE OBLIGATIONS (CMO). Classes of bonds that redistribute the cash flows of mortgage securities (and whole loans) to create securities that have different levels of prepayment risk, as compared to the underlying mortgage securities.

COLLATERALIZED TIME DEPOSIT. Time deposits that are collateralized at least 100% (principal plus interest to maturity). These instruments are collateralized using assets set aside by the issuer such as Treasury securities or other qualified collateral to secure the deposit in excess of the limit covered by the Federal Deposit Insurance Corporation.

COMMERCIAL PAPER. The short-term unsecured debt of corporations.

COUPON. The rate of return at which interest is paid on a bond.

CREDIT RISK. The risk that principal and/or interest on an investment will not be paid in a timely manner due to changes in the condition of the issuer. 109
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DEALER. A dealer acts as a principal in security transactions, selling securities from and buying securities for his own position.

DEBENTURE. A bond secured only by the general credit of the issuer.

DELIVERY VS . PAYMENT (DVP). A securities industry proc edure whereby payment for a security must be made at the time the security is delivered to the purchaser’s agent.

DERIVATIVE. Any security that has principal and/or interest payments which are subject to uncertainty (but not for reasons of default or credit risk) as to timing and/or amount, or any security which represents a component of another security which has been separated from other components (“Stripped” coupons and principal). A derivative is also defined as a financial instrument the value of whic h is totally or partially derived from the value of another instrument, interest rate, or index. 110
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DISCOUNT. The difference between the par value of a bond and the cost of the bond, when the cost is below par. Some short-term securities, such as T-bills and banker’s acceptances, are known as discount securi ties. They sell at a discount from par and return the par value to the investor at maturity without additional interest. Other securities, which have fixed coupons, trade at a discount when the coupon rate is lower than the current market rate for securities of that maturity and/or quality.

DIVERSIFICATION. Dividing investment funds among a va riety of investments to avoid excessive exposure to any one source of risk.

DURATION. The weighted average time to maturity of a bond where the weights are the present values of the future cash flows. Duration measures the price sensitivity of a security to changes interest rates.

FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC). The Federal Deposit Insurance Corporation (FDIC) is an independent federal agency in suring deposits in U.S. banks and thrifts in the event of bank failu res. The FDIC was created in 1933 to maintain public confidence and encourage stability in the financial system through the promotion of sound banking practices.

FEDERALLY INSURED TIME DEPOSIT. A time deposit is an inte rest-bearing bank deposit account that has a specified date of maturity, such as a certificate of deposit (CD).

These deposits are limited to funds insu red in accordance with FDIC insurance deposit limits.

FIDUCIARY. A person or organization that acts on behalf of another person(s) or organization that puts their clients’ interest ahead of their own, as they are bound both legally and ethically to act in the best interests of their clients.

LEVERAGE. Borrowing funds in order to invest in securities that have the potential to pay earnings at a rate higher than the cost of borrowing.

LIQUIDITY. The speed and ease with which an asset can be converted to cash.

LOCAL AGENCY INVESTMENT FUND (LAIF). A voluntary investment fund open to government entities and certain non-profit organizations in California that is managed by the State Treasurer’s Office.

LOCAL GOVERNMENT INVESTMENT POOL. Investment pools that range from the State Treasurer’s Office Local Agency Investment Fund (LAIF) to county pools, to Joint Powers Authorities (JPAs). These funds are not subject to the same SEC rules applicable to money market mutual funds.

MAKE WHOLE CALL. A type of call provision on a bond that allows the issuer to pay off the remaining debt early. Unlike a call option, with a make whole call provision, the issuer makes a lump sum payment that equals the net present value (NPV) of future coupon payments that will not be paid because of the call. With this type of call, an investor is compensated, or "made whole."
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MARGIN. The difference between the market value of a security and the loan a broker makes using that security as collateral.

MARKET RISK. The risk that the value of securities will fluctuate with changes in overall market conditions or interest rates.

MARKET VALUE. The price at which a security can be traded.

MATURITY. The final date upon which the principal of a security becomes due and payable.

The investment’s term or remaining maturity is measured from the settlement date to final maturity.

MEDIUM TERM NOTES. Unsecured, investment-grade seni or debt securities of major corporations which are sold in relative ly small amounts on eith er a continuous or an intermittent basis. MTNs are highly fl exible debt instruments that can be structured to respond to market opportunities or to investor preferences.

MODIFIED DURATION. The percent change in price for a 100-basis point change in yields.

Modified duration is the best single measure of a portfolio’s or security’s exposure to market risk.

MONEY MARKET. The market in which short-term debt instruments (T-bills, discount notes, commercial paper, and banker’s acceptances) are issued and traded.

MONEY MARKET MUTUAL FUND. A mutual fund that invests exclusively in short-term securities. Examples of investments in money market funds ar e certificates of deposit and U.S. Treasury securities. Money market funds attempt to keep their net asset values at $1 per share.

MORTGAGE PASS-THROUGH SECURITIES. A securitized participation in the interest and principal cash flows from a specif ied pool of mortgages. Principal and interest payments made on the mortgages are passed through to the holder of the security.

MUNICIPAL SECURITIES. Securities issued by state and local agencies to finance capital and operating expenses.

MUTUAL FUND. An entity which pools the funds of in vestors and invests those funds in a set of securities which is specifically defined in the fund’s prospectus. Mutual funds can be invested in various types of dom estic and/or international stocks, bonds, and money market instruments, as set forth in the individual fund’s prospectus. For most large, institutional in vestors, the costs associated with investing in mutual funds are higher than the investor c an obtain through an individually managed portfolio.

NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION (NRSRO).

A credit rating agency that the Securities and Exchange Commission in the United States uses for regulatory purposes. Cr edit rating agencies provide assessments of an investment's risk. The issuers of investments, especially debt securities, pay credit rating agencies to provide them with ratings. The three most prominent NRSROs are Fitch, S&P, and Moody's.

NEGOTIABLE CERTIFICATE OF DEPOSIT (CD). A short-term debt instrument that pays interest and is issued by a bank, savings or federal association, state or federal credit union, or state-licensed branch of a foreign bank. N egotiable CDs are traded in a secondary market.

OFFER (ASK). An indicated price at which market participants are willing to sell a security.

Also referred to as the “ask price”.

PLACEMENT SERVICE DEPOSITS. A private service that allows local agencies to invest in FDIC-insured deposits with one or more banks, savings and loans, and credit unions located in the United States. In traFi (formerly known as CDARS) is an 112
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example of an entity that provides this service.

PRIMARY DEALER. A financial institution (1) that is a trading counterparty with the Federal Reserve in its execution of market operat ions to carry out U. S. monetary policy, and (2) that participates for statistical reporting purposes in compiling data on activity in the U.S. Government securities market.
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PRUDENT PERSON (PRUDENT INVESTOR) RULE. A standard of responsibility which applies to fiduciaries. In California, the rule is stated as “Investments shall be managed with the care, skill, prudence and diligence, under the circumstances then prevailing, that a prudent person, acting in a like capacity and familiar with such matters, would use in the conduct of an enterprise of like character and with like aims to accomplish similar purposes.”
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REPURCHASE AGREEMENT. Short-term purchases of securities with a simultaneous agreement to sell the securities back at a higher price. From the seller’s point of view, the same transaction is a reverse repurchase agreement.

SAFEKEEPING. A service to bank customers whereby securities are held by the bank in the customer’s name.

SECURITIES AND EXCHANGE COMMISSION (SEC). The U.S. Securities and Exchange Commission (SEC) is an independent federal government agency responsible for protecting investors, maintaining fair and orderly functioning of securities markets and facilitating capital formation. It was created by Congress in 1934 as the first federal regulator of securities markets. The SEC promotes fu ll public disclosure, protects investors against fraudulent and manipulative practices in the market, and monitors corporate takeover actions in the United States.

SECURITIES AND EXCHANGE COMMISSION SEC) RULE 15C3-1. An SEC rule setting capital requirements for brokers and dealers. Under Rule 15c3-1, a broker or dealer must have sufficient liquidity in order to cove r the most pressing obligations. This is defined as having a certain amount of liquidity as a percentage of the broker/dealer's total obligations. If the percentage falls below a certain point, the broker or dealer may not be allowed to take on new clients and may have restrictions placed on dealings with current client.

STRUCTURED NOTE. Notes issued by Government Sponsored Enterprises (FHLB, FNMA, etc.) and Corporations, which have imbedded options (e.g., call features, step-up coupons, floating rate coupons, derivative-based returns) into their debt structure.

Their market performance is impacted by t he fluctuation of interest rates, the volatility of the imbedded options and shif ts in the shape of the yield curve.A complex, fixed income instrument, which pays interest, based on a formula tied to other interest rates, commodities or indices. Examples include inverse floating rate notes which have coupons that increase when other interest rates are falling, and which fall when other interest rates are rising, and "dual index floaters," which pay interest based on the relationship between tw o other interest rates - for example, the yield on the ten-year Treasury note minus the Libor rate. Issuers of such notes lock in a reduced cost of borrowing by purchasing interest rate swap agreements.

SUPRANATIONAL. A Supranational is a multi-national organization whereby member states transcend national boundaries or interests to share in the decision making to promote economic development in the member countries.

TOTAL RATE OF RETURN. A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginn ing value of the portfolio with the ending value; it includes interest earnings, rea lized and unrealized gains, and losses in the portfolio.

U.S. TREASURY OBLIGATIONS. Securities issued by the U.S. Treasury and backed by the full faith and credit of t he United States. Treasuries are considered to have no credit risk and are the benchmark for interest rates on all other securities in the US and overseas. The Treasury issues both di scounted securities and fixed coupon notes and bonds.

TREASURY BILLS. All securities issued with initial maturities of one year or less are issued as discounted instruments and are called Treasury bills. The Treasury currently issues three- and six-month T-bills at regular weekly auctions. It also issues “cash 115
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management” bills as needed to smooth out cash flows.

TREASURY NOTES. All securities issued with initial maturities of two to ten years are called Treasury notes and pay interest semi-annually.

TREASURY BONDS. All securities issued with initial maturities greater than ten years are called Treasury bonds. Like Treasury notes, they pay interest semi-annually.

YIELD TO MATURITY. The annualized internal rate of return on an investment which equates the expected cash flows from the investment to its cost. 116

CITY OF MURRIETA
City Council Meeting Agenda
Report
12/2/2025
Agenda Item No. 7.

TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Justin Clifton, City Manager
PREPARED BY: Isaac Bravo, Management Analyst
SUBJECT:

Approval of the Third Amendment with Alchemy Group, Inc. for Federal Legislative Advocacy and Fifth Amendment with Townsend Public Affairs, Inc. for Grant Writing and Legislative Advocacy

RECOMMENDATION
Approve the Third Amendment to the Agreement with the Alchemy Group, Inc. for an amount not to exceed $60,000 for federal legislative advocacy services for an additional year; Approve a Fifth Amendment to the Agreement with Townsend Public Affairs, Inc. for an additional three years in the total amount not to exceed $414,000, for grant writing and legislative advocacy services; and Authorize the City Manager to execute the amendments in a form approved by the City Attorney.

PRIOR ACTION/VOTE
On April 20, 2021, the City Council adopted Resolution No. 21-4391, authorizing the First Amendment to the Agreement with Townsend Public Affairs, Inc. to include federal legislative advocacy services, effective April 5, 2021, and increasing the contract amount not-to-exceed to $90,000 (Vote: 5-0).

On March 31, 2023, the City Council adopted Resolution No. 23-4650 extending the agreement with Townsend Public Affairs, Inc. to December 31, 2024, increasing the not-to-exceed amount to $126,000, and adding inclusion of state legislative advocacy services (Vote: 5-0).

On August 17, 2023, the City Manager entered into an agreement with The Alchemy Group, Inc. for federal legislative advocacy services in the amount not to exceed $25,000.

On June 24, 2024, the City Manager authorized an amendment to the agreement with The Alchemy Group, Inc., extending the agreement to December 31, 2024, and increasing the amount not to exceed $75,000.

On December 3, 2024, the City Council approved the Second Amendment with Alchemy Group Inc., and the Fourth Amendment with Townsend Public Affairs, Inc., for grant writing and legislative advocacy. (Vote: 5-0)

CITY COUNCIL GOAL
Maintain a high performing organization that values fiscal sustainability, transparency, accountability and organizational efficiency.

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Agenda Item No. 7.

DISCUSSION
The City of Murrieta (City) has historically contracted for both legislative advocacy and grant writing professional services. As of 2024, the City has contracted with two firms, Townsend Public Affairs, Inc. (TPA) and The Alchemy Group (Alchemy), for grant writing and legislative advocacy services. While both firms offer similar scopes, each firm offers distinct services to the City.

Townsend Public Affairs
In 2019, TPA was originally selected after a competitive Request for Proposal (RFP) process for grant writing services by the City. The contract with TPA was expanded in 2021, to include federal legislative advocacy, and in 2023, to include State legislative advocacy. TPA has worked with the City to organize and coordinate legislative trips to both Sacramento and Washington, D.C. They have also helped the City secure over $15 million of State and federal grant funding for the City for various uses, including public safety, transportation, and infrastructure improvements.

TPA routinely informs the City of various State and federal grant opportunities, as well as potential legislation that may adversely impact the City or align with its legislative platform.

The Alchemy Group
The City Manager’sOffice contracted with The Alchemy Group to augment and specifically focus on advocacy to federal representatives. Following federal redistricting for the United States House of Representatives, the City was moved from CA-41 (Ken Calvert, (R)) to CA-48 (Darrell Issa, (R)). Alchemy has had tremendous success in helping the City establish and build a positive working relationship with the new Congressional representative’soffice. This relationship is critical to the City, especially with major projects on the horizon, including the Interstate 215 at Keller Road interchange project.

Although City staff are assigned to grants administration and legislative affairs, the same staff perform other duties. As such, the availability of staff to dedicate time to the performance of the critical work of coordinating and performing advocacy at the State and federal levels is limited. Given the significance of the possible funding opportunities and the need to secure funding to complete key projects, such as roadway and infrastructure projects, and to establish and keep good working relationships with State and Federal representatives, staff recommends the City continue to engage Alchemy through 2026 and extend TPA through 2028.

FISCAL IMPACT
The fiscal impact associated with the amendment to the TPA Agreement is $3,000 for FY 2025/26 and $6,000 for FY 2026/27. Sufficient budget appropriations are available to cover these costs in each respective fiscal year. Funding for year 3 will be incorporated into the City’s biennial budget development.

As part of the annual contract review, Townsend requested an adjustment to their monthly fee to reflect the continued level of service and increased volume of grant activity.

The revised contract amount for Townsend is as follows:
• Year 1: $11,000 per month. $132,000 annually. Approximately a 4.8 percent increase. • Year 2: $11,500 per month. $138,000 annually. Approximately a 4.5 percent increase. • Year 3: $12,000 per month. $144,000 annually. Approximately a 4.3 percent increase.

Alchemy Group’scontract amount remains unchanged; therefore, there is no fiscal impact associated with the amendment to the Alchemy Group’s contract.

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Agenda Item No. 7.

ATTACHMENTS

1. Third Amendment with The Alchemy Group, Inc. for Federal Legislative Advocacy

2. Fifth Amendment with Townsend Public Affairs, Inc. for Grant Writing and Legislative Advocacy CITY OF MURRIETA Printed on 11/26/2025Page 3 of 3
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Amendment Template for Consultants(937862.5).dotx -1-

AMENDMENT TO THE AGREEMENT WITH

THE CITY OF MURRIETA AND CONSULTANT

Amendment No.: 3
Original Agreement Title (“Agreement”): Agreement for On-Call Professional Services with the City of Murrieta (“City”) for Consulting Services with Federal Representatives Original Agreement Project Name: N/A
Original Agreement Effective Date: December 31, 2023
Current Agreement Termination Date (after any existing Amendments): December 31, 2025 Consultant Name: The Alchemy Group, Inc.

Brief Description of Scope of Services (“Services”): Federal legislative advocacy.

Prior Amendments, if any (no. and effective date): 2

This Amendment to the Agreement, made effectiv e on the date executed by the City by and between the City of Murrieta, a Municipal Corporation, duly organized and existing under and by virtue of the laws of the State of California ("City"), and the above referenced Consultant with reference to the following facts which are acknowledged by each party as true and correct:

RECITALS

Whereas, City is a general law city, formed and existing pursuant to the provisions of the California Government Code.

Whereas, City and Consultant entered into an Agreement on the Effective Date set forth above for the Services.

Whereas, City and Consultant wish to amend the Agreement as further set forth herein.

AMENDMENT

NOW, THEREFORE, it is agreed by and between the parties as follows:

1. The above recitals are true and correct.

2. The following terms of the Agreement are hereby amended to read as follows:

“3.2 Term
The Agreement shall commence from the date of execution by both parties and continue through December 31, 2026. This Agreement may be extended for up to one, additional one-year period upon mutual agreement in writing of both parties.”

3. All other conditions of the Agreement shall continue in full force and effect.

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to the Agreement to be executed on the dates set forth below.

Signature Page to Follow.

IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the date and year first-above written.

CITY OF MURRIETA ATTEST:

By:_____________________________ By:_____________________________ Justin Clifton, City Manager Cristal McDonald, City Clerk Date: ___________________________ Date: ___________________________

APPROVED AS TO FORM

ALESHIRE & WYNDER, LLP
By: ____________________________
Tiffany Israel, City Attorney

CONSULTANT:

By:_____________________________ By:_____________________________ Name: Click or tap here to enter text. Name: Click or tap here to enter text.

Title: Click or tap here to enter text. Title: Click or tap here to enter text.

Date: ___________________________ Date: ___________________________

Two corporate officer signatures required when Consultant is a corporation, with one signature required from each of the following groups: 1) Chairperson of the Board, President or any Vice President; and 2) Secretary, any Assistant Secretary, Chief Financial Officer or any Assistant Treasurer. (Cal. Corp. Code § 313.) Appropriate attestations shall be included as may be required by the bylaws, articles of incorporation or other rules or regulations applicable to Consultant’s business City. 121
Amendment Template for Consultants(937862.5).dotx -1-

AMENDMENT TO THE AGREEMENT WITH

THE CITY OF MURRIETA AND CONSULTANT

Amendment No.: 5
Original Agreement Title (“Agreement”): Agreement between the City of Murrieta and Townsend Public Affairs, Inc.

Original Agreement Project Name: N/A
Original Agreement Effective Date: December 17, 2019
Current Agreement Termination Date (after any existing Amendments): December 31, 2025 Consultant Name: Townsend Public Affairs, Inc.

Brief Description of Scope of Services (“Services”): Grant writing and legislative advocacy.

Prior Amendments, if any (no. and effective date): 4, December 3, 2024

This Amendment to the Agreement, made effective on the date executed by the City by and between the City of Murrieta, a Municipal Corporation, duly organized and existing under and by virtue of the laws of the State of California ("City"), and the above referenced Consultant with reference to the following facts which are acknowledged by each party as true and correct:

RECITALS

Whereas, City is a general law city, formed and existing pursuant to the provisions of the California Government Code.

Whereas, City and Consultant entered into an Agreement on the Effective Date set forth above for the Services.

Whereas, City and Consultant wish to amend the Agreement as further set forth herein.

AMENDMENT

NOW, THEREFORE, it is agreed by and between the parties as follows:

1. The above recitals are true and correct.

2. The following terms of the Agreement are hereby amended to read as follows:

Section 3.1 is hereby amended in its entirety to read as follows:

“The term of this agreement shall be from December 17, 2019 to December 31, 2028.”

Section 4.1 of the Agreement is hereby amended to add the following:

“For the period January 1, 2026 through December 31, 2026, the City shall pay the Consultant 122
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$11,000 per month for an amount not-to-exceed $132,000 for that year. For the period January 1, 2027 through December 31, 2027, the City shall pay the Consultant $11,500 per month for an amount not-to-exceed $138,000 for that year. For the period January 1, 2028 through December 31, 2028, the City shall pay the Consultant $12,000 per month for an amount not-to-exceed $144,000 for that year.”

3. All other conditions of the Agreement shall continue in full force and effect.

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to the Agreement to be executed on the dates set forth below.

Signature Page to Follow.

IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the date and year first-above written.

CITY OF MURRIETA ATTEST:

By:_____________________________ By:_____________________________ Justin Clifton, City Manager Cristal McDonald, City Clerk Date: ___________________________ Date: ___________________________

APPROVED AS TO FORM

ALESHIRE & WYNDER, LLP
By: ____________________________
Tiffany Israel, City Attorney

CONSULTANT:

By:_____________________________ By:_____________________________ Name: Click or tap here to enter text. Name: Click or tap here to enter text.

Title: Click or tap here to enter text. Title: Click or tap here to enter text.

Date: ___________________________ Date: ___________________________

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Two corporate officer signatures required when Consultant is a corporation, with one signature required from each of the following groups: 1) Chairperson of the Board, President or any Vice President; and 2) Secretary, any Assistant Secretary, Chief Financial Officer or any Assistant Treasurer. (Cal. Corp. Code § 313.) Appropriate attestations shall be included as may be required by the bylaws, articles of incorporation or other rules or regulations applicable to Consultant’s business City. 124

CITY OF MURRIETA
City Council Meeting Agenda
Report
12/2/2025
Agenda Item No. 8.

TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Javier Carcamo, Finance Director
PREPARED BY: Jennifer Terry, Finance Manager
SUBJECT:

Approve the Recognized Obligation Payment Schedule and Administrative Budget for Fiscal Year 2026/27

RECOMMENDATION
Adopt Resolution No. RSA 25-36 entitled: A Resolution of the Successor Agency to the Murrieta Redevelopment Agency Approving a Recognized Obligation Payment Schedule for the Period from July 1, 2026, through June 30, 2027, Approving the Successor Agency’sProposed Administrative Budget for Fiscal Year 2026/27, and Authorizing Posting and Transmittal Thereof.

PRIOR ACTION/VOTE
On February 21, 2012, the City Council, serving as the Successor Agency to the Murrieta Redevelopment Agency (Successor Agency), adopted Resolution No. RSA 12-02, approving and adopting a Recognized Enforceable Obligation Payment Schedule pursuant to ABX1 26 (Vote: 3-0-2).

On April 17, 2012, the City Council, serving as the Successor Agency to the Murrieta Redevelopment Agency, adopted Resolution No. RSA 12-03, approving and adopting the Recognized Obligation Payment Schedule from July 1, 2012, to December 31, 2012, pursuant to ABX1 26 (Vote: 4-0-1).

On August 21, 2012, the City Council, serving as the Successor Agency to the Murrieta Redevelopment Agency, adopted Resolution No. RSA 12-05, approving and adopting the Recognized Obligation Payment Schedule from January 1, 2013, to June 30, 2013, pursuant to AB X1 26 (Vote: 5-0).

On December 3, 2024, the City Council, serving as the Successor Agency to the Murrieta Redevelopment Agency, adopted Resolution No. RSA 24-33, approving and adopting the Recognized Obligation Payment Schedule and Administrative Budget for July 1, 2025, to June 30, 2026, pursuant to ABX1 26 (Vote: 5-0).

CITY COUNCIL GOAL
Maintain a high performing organization that values fiscal sustainability, transparency, accountability and organizational efficiency.

DISCUSSION
On December 29, 2011, the California Supreme Court issued its decision in CRA v. Matosantos, upholding Assembly Bill (AB) X1 26, which dissolved all redevelopment agencies in California, and overturned AB X1 27, CITY OF MURRIETA Printed on 11/26/2025Page 1 of 4
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Agenda Item No. 8.

Assembly Bill (AB) X1 26, which dissolved all redevelopment agencies in California, and overturned AB X1 27, the “voluntaryalternative redevelopment program.”With the voluntary redevelopment program provided for in ABX1 27 being ruled unconstitutional by the Court, all California redevelopment agencies were deemed dissolved on February 1, 2012. Thus, as of February 1, 2012, redevelopment agencies throughout the State began the process to wind down.

As ABX1 26 was later modified by AB 1484 and Senate Bill 107 and codified in the State Health and Safety Code (HSC), successor agencies had to wind down the affairs of their respective, now-dissolved redevelopment agencies. The City of Murrieta (City) elected to serve as the Successor Agency (Successor Agency) to the dissolved Murrieta Redevelopment Agency (Former RDA).

As part of the dissolution process, the Successor Agency must prepare a Recognized Obligation Payment Schedule (ROPS) showing all the obligations of the Former RDA and the sources of funds for the repayments.

The Successor Agency must also prepare an administrative budget for the upcoming Fiscal Year (FY). Both documents must be submitted to the Riverside Countywide Consolidated Oversight Board (Oversight Board) and the California Department of Finance (DOF) for approval.

The Successor Agency is being asked to approve the ROPS for the period July 1, 2026, through June 30, 2027 (ROPS 2026/27). Once approved, ROPS 2026/27 will be presented to the Oversight Board for approval.

Following this, it will be transmitted to the DOF, California State Controller, and Riverside County Auditor- Controller (CAC) by the February 1, 2026, deadline for their review. Descriptions of items on the ROPS 2026/27 are provided below.

Item 9, Administrative Allowance
HSC Section 34177(j) requires the Successor Agency to prepare an Administrative Budget and submit it to the Oversight Board for approval. Pursuant to HSC Section 34171 (b), the administrative allowance is limited to the greater of $250,000 per year, or three percent (3%) of the Redevelopment Property Tax Trust Fund (RPTTF) distributed in the prior FY, excluding the administrative allowance and any City/Former Agency loan repayments. The Successor Agency anticipates needing an administrative allowance in the amount of $50,650 in FY 2026/27. Administrative activities for FY 2026/27 include preparation and legal review of the ROPS, Prior Period Adjustment (PPA) reconciliation, cash balance reconciliation, agenda reports and resolutions, payment of enforceable obligations, attendance at Successor Agency and Oversight Board meetings, and other activities detailed in Exhibit B attached to the accompanying resolution.

Items 57-59, Bonds Debt Service and Fiscal Agent Fees
The Successor Agency refunded the 2002, 2005, and 2007 Tax Allocation Bonds with an issue of 2017 Tax Allocation Refunding Bonds to take advantage of lower interest rates and reduce the total sum of future debt service payments. The 2017 Series A and B bonds are listed on the ROPS 2026/27 as items 57-59, which include associated fiscal agent fees and continuing disclosure costs. The Successor Agency requests $1,173,981 for the 2017 Series A bond, $1,618,103 for the Series B bond, and $9,230 for fiscal agent fees and continuing disclosure costs on the ROPS 2026/27.

Cash Balances
The Report of Cash Balances in the current ROPS represents the Successor Agency’scash balance as of June 30, 2024. It shows the inflow and outflow of funds held by the Successor Agency and assists the Successor Agency in identifying other funds available to spend on enforceable obligations in place of RPTTF.

In FY 2023/24, Successor Agency staff and its consultant, RSG, Inc., performed a cash balance reconciliation to analyze the Successor Agency’s true cash balance and determined that the Successor Agency has available cash on hand to spend on enforceable obligations in place of RPTTF for FY 2026/27. The Successor Agency has also retained revenue from previous FYs to fund debt service obligations in future years, as detailed below:

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Agenda Item No. 8.
· The Successor Agency has retained $12,746 in property tax revenues received, but not spent, for obligations in FY 2021/22 for expenditures in FY 2024/25. This amount is also known as the 21/22 PPA.
· The Successor Agency has retained $55,197 in property tax revenues received, but not spent, for obligations in FY 2022/23 for expenditures in FY 2025/26. This amount is also known as the 22/23 PPA.

ROPS 23-24 Prior Period Adjustment
As required by HSC Section 34186(c), the Successor Agency prepared a reconciliation between approved and actual payments on enforceable obligations from the ROPS covering FY 2023/24 and submitted this reconciliation to the CAC prior to the October 1, 2025, deadline. There was a $1,431 difference between approved and actual payments.

Last and Final ROPS
Pursuant to HSC Section 34191.6(a), beginning January 1, 2016, agencies that have received a Finding of Completion may submit a Last and Final ROPS if all the following conditions are met:
1) The remaining debt is limited to administrative costs and payments pursuant to enforceable obligations with defined payment schedules, including, but not limited to, debt service, loan agreements, and contracts.
2) All remaining obligations have been previously listed on the ROPS and approved for payment by DOF pursuant to HSC Section 34177(m) or (o).
3) The agency is not a party to outstanding/unresolved litigation, except as specified in HSC Section 34191.6(a)(3).

A Last and Final ROPS will reduce the administrative burden on the Successor Agency and eliminate the need for annual Oversight Board meetings to approve the ROPS. The Successor Agency can amend the Last and Final ROPS twice. The Successor Agency meets the required conditions; however, it prefers to maintain an annual ROPS at this time. Furthermore, DOF has oversight over all Last and Final ROPS approvals and has been limiting the Successor Agency's administrative allowance to approximately $5,000 per year.

Riverside Countywide Oversight Board
As of July 1, 2018, the Riverside County Consolidated Oversight Board (Oversight Board) was established pursuant to HSC Section 34179(j). The Oversight Board reviews actions taken by all successor agencies within the County and can direct these agencies to perform specific actions.

The Oversight Board has scheduled its general meetings to take place in the Riverside County Board Chambers, located on the first floor at 4080 Lemon Street in Riverside. The deadline for the Successor Agency to submit its ROPS 2026/27 to the Oversight Board for the January 15, 2026, meeting is December 18, 2025.

This deadline allows County staff to review the submission and provide feedback, as well as for the Successor Agency to incorporate any necessary feedback. With the consolidation of the Oversight Boards, expenditures are being more stringently monitored, and successor agencies must provide additional supporting documentation, especially for the administrative allowance. Upon approval of the recommended action, Successor Agency staff will submit the ROPS along with supporting documentation to the Oversight Board for the January 15, 2026, meeting.

FISCAL IMPACT
The 2026/27 ROPS must be approved by the Murrieta Successor Agency and the Oversight Board. Upon approval, the ROPS will be forwarded to the DOF by February 1, 2026, for the Murrieta Successor Agency to receive RPTTF, administered by the CAC, to pay enforceable obligations during the ROPS 2026/27 period.

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Agenda Item No. 8.
receive RPTTF, administered by the CAC, to pay enforceable obligations during the ROPS 2026/27 period.

The FY 2026/27 administrative and debt service budgets for the Successor Agency were included in the biennial budget.

ATTACHMENTS

1. Resolution No. RSA 25-36
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SUCCESSOR AGENCY
RESOLUTION NO. RSA 25-36

A RESOLUTION OF THE SUCCESSOR AGENCY TO THE MURRIETA

REDEVELOPMENT AGENCY APPROVING A RECOGNIZED

OBLIGATION PAYMENT SCHEDULE FOR THE PERIOD FROM JULY
1, 202 6, THROUGH JUNE 30, 202 7, APPROVING THE SUCCESSOR AGENCY’S PROPOSED ADMINISTRATIVE BUDGET FOR FISCAL
YEAR 202 6/27, AND AUTHORIZING POSTING AND TRANSMITTAL

THEREOF

WHEREAS, the Murrieta Redevelopment Agency (the “Former RDA”) was a public body, corporate and politic, duly created, established, and authorized to transact business and exercise its powers under and pursuant to the provisions of the Community Redevelopment Law (Part 1 of Division 24 of the California Health and Safety Code), and the powers of the Former RDA included the power to issue bonds for any of its corporate purposes; and

WHEREAS, on June 28, 2011, the California Legislature adopted Assembly Bills x1 26 (the “Dissolution Act”) and x1 27 (the “Opt-in Bill”); and

WHEREAS, the California Supreme Court subsequently upheld the provisions of the Dissolution Act and invalidated the Opt-in Bill, resulting in the dissolution of the Former RDA as of February 1, 2012; and

WHEREAS, the redevelopment powers, assets, and obligations of the Former RDA were transferred on February 1, 2012, to the City Council acting as the Successor Agency to the Murrieta Redevelopment Agency (“Successor Agency”); and

WHEREAS, on June 27, 2012, Assembly Bill 1484 was adopted as a trailer bill in connection with the Fiscal Year 2012 /13 California Budget, and Senate Bill 107 was adopted on September 22, 2015, both to modify certain provisions of the Dissolution Act; and

WHEREAS, among the duties of successor agencies under the Dissolution Act as amended is the preparation of an annual Recognized Obligation Payment Schedule (ROPS), per Health and Safety Code section 34177(l), that includes the ensuing fiscal year for consideratio n by a consolidated oversight board and the California Department of Finance (DOF) for purposes of administering the wind-down of financial obligations of the former redevelopment agency; and

WHEREAS, section 34177(l) of the Dissolution Act further requires that the proposed ROPS be transmitted to the oversight board, after which time the oversight board may approve the ROPS and the Successor Agency’s transmittal of the adopted ROPS to DOF, the County Auditor- Controller, and the State Controller’s Office for their consideration; and 129

Resolution No. RSA 25-36

WHEREAS, the Riverside Countywide Consolidated Oversight Board ("Oversight Board"), formed July 1, 2018, has jurisdiction over the Successor Agency; and

WHEREAS, the Successor Agency’s proposed ROPS covering the period from July 1, 2026, through June 30, 2027 (“ROPS 26/27”), attached hereto as Exhibit “A,” has been prepared and is consistent with the provisions of the Dissolution Act and in the format made available by DOF; and

WHEREAS, section 34177(j) of the Dissolution Act requires the Successor Agency to prepare a proposed administrative budget and submit it to the Oversight Board for approval; and

WHEREAS, the Successor Agency prepared the Fiscal Year 202 6/27 Administrative Budget in accordance with the Dissolution Act, attached hereto as Exhibit “B” (the “Administrative Budget”); and

WHEREAS, the Oversight Board will review the ROPS 26/27 and Administrative Budget on January 15, 2026; and

WHEREAS, the Successor Agency desires to approve the ROPS 26/27 and the Fiscal Year 2026/27 Administrative Budget and transmit them to various parties as required by the Dissolution Act.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MURRIETA,

CALIFORNIA, ACTING AS THE SUCCESSOR AGENCY TO THE MURRIETA REDEVELOPMENT AGENCY DOES HEREBY RESOLVE AS FOLLOWS:

Section 1. The above recitals are true and correct and are incorporated herein by this reference.

Section 2. The proposed ROPS 26/27 covering the period of July 1, 202 6, to June 30, 2027, substantially in the form attached hereto as Exhibit “A,” is approved and adopted. Successor Agency staff is hereby authorized and directed to submit a copy to the Oversight Board for approval.

The Successor Agency authorizes administrative revisions to be made by the Executive Director to the ROPS 26/27 to enable the Successor Agency to submit the ROPS 26/27 to DOF by the deadline of February 1, 2026.

Section 3. The Fiscal Year 2026/27 Administrative Budget for the period July 1, 2026, to June 30, 2027, submitted herewith as Exhibit “B,” is hereby approved.

Section 4. The officers of the Successor Agency are hereby authorized and directed, jointly and severally, to do any and all things which they may deem necessary or advisable to effectuate this Resolution, including requesting additional review by the DOF and an oppo rtunity to meet and confer on any disputed items, and any such actions previously taken by such officers and staff are hereby ratified and confirmed. Specifically, the officers of the Successor Agency are hereby authorized and directed to post a copy of the ROPS 26/27 on the City’s website and transmit a copy of the ROPS 26/27 to the Riverside Countywide
130

Resolution No. RSA 25-36

Consolidated Oversight Board, the Riverside County Auditor-Controller, the State Controller’s Office, and the State of California Department of Finance.

PASSED AND ADOPTED this 2nd day of December 2025, by the City Council acting as the Successor Agency to the Murrieta Redevelopment Agency.

Cindy Warren, Chair

ATTEST:

Cristal McDonald, Secretary

APPROVED AS TO FORM:

Tiffany Israel, Agency Counsel

STATE OF CALIFORNIA ) COUNTY
OF RIVERSIDE )§ CITY OF

MURRIETA )
I, Cristal McDonald, City Clerk of the City of Murrieta, California, do hereby certify that the foregoing Successor Agency Resolution No. RSA 25-36was duly passed and adopted by the City Council of the City of Murrieta at the regular meeting thereof, held on the 2nd day of December 2025, and was signed by the Mayor of the said City, and that the same was passed and adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Cristal McDonald, City Clerk
131
Successor Agency:Murrieta
County: Riverside
Current Period Requested Funding for Enforceable Obligations (ROPS Detail) 26-27A Total
(July - December)
26-27B Total
(January - June)ROPS 26-27 Total
AEnforceable Obligations Funded as Follows (B+C+D): -$ -$ -$ B Bond Proceeds -$ -$ -$ CReserve Balance -$ -$ -$ DOther Funds -$ -$ -$ E Redevelopment Property Tax Trust Fund (RPTTF) (F+G): 2,389,227$ 462,737$ 2,851,964$ F RPTTF 2,338,577$ 462,737$ 2,801,314$ GAdministrative RPTTF 50,650$ -$ 50,650$ HCurrent Period Enforceable Obligations (A+E): 2,389,227$ 462,737$ 2,851,964$ Certification of Oversight Board Chairman: Signature Title Pursuant to Section 34177 (o) of the Health and Safety Code, I hereby certify that the above is a true and accurate Recognized Obligation Payment Schedule for the above named successor agency. Signature Title
Recognized Obligation Payment Schedule (ROPS 26-27) - Summary Filed for the July 1, 2026 through June 30, 2027 Period 132

A B C D E F G H IJKLMNOPQRSTUVWXY
Bond ProceedsReserve BalanceOther FundsRPTTFAdmin RPTTFNotesBond ProceedsReserve BalanceOther FundsRPTTFAdmin RPTTFNotes33,503,434$ 2,851,964$ -$ -$ -$ 2,338,577$ 50,650$ 2,389,227$ -$ -$ -$ 462,737$ -$ 462,737$ 9City AdministrationAdmin Costs7/1/20156/30/2038City of MurrietaPayroll & Operating costsCombined Project Area601,300 N50,650$ 50,650$ 50,650$ -$ 572017 Tax Allocation Refunding Bonds, Series ARefunding Bonds Issued After 6/27/1210/5/20178/1/2035Union BankDebt Service Payments for Refunding of 2002, 2005, and 2007 BondsCombined Project Area9,958,597 N1,173,981$ 1,025,178$ 1,025,178$ 148,803$ 148,803$ 582017 Tax Allocation Refunding Bonds, Series BRefunding Bonds Issued After 6/27/1210/5/20178/1/2037Union BankDebt Service Payments for Refunding of 2002, 2005, and 2007 BondsCombined Project Area22,837,037 N1,618,103$ 1,304,169$ 1,304,169$ 313,934$ 313,934$ 592017 Bonds Fiscal Agent Fees and Continuing Disclosure CostsFees10/5/20178/1/2037Union BankFiscal agent fees, annual continuing disclosure costsCombined Project Area106,500 N9,230$ 9,230$ 9,230$ -$ 26-27A (July - December)26-27ATotal
26-27B (January - June)26-27BTotalFund Sources Fund Sources Murrieta Recognized Obligation Payment Schedule (ROPS 26-27) - ROPS DetailJuly 1, 2026 through June 30, 2027(Report Amounts in Whole Dollars) Item #Project Name/Debt ObligationObligation TypeContract/AgreementExecution DateContract/AgreementTermination DatePayeeDescription/Project ScopeProject AreaTotal OutstandingDebt or ObligationRetiredROPS 26-27Total 133

A B C D E F G H
Reserve Balance Other Funds RPTTF
Bonds issued on or before 12/31/10 Bonds issued on or after 01/01/11 Prior ROPS RPTTF and Reserve Balances retained for future period(s) Rent,Grants,Interest, etc.

Non-Admin and Admin
1Beginning Available Cash Balance (Actual 07/01/23)RPTTF amount should exclude "A" period distribution amount 580,251 81,443 G: Retain $13,500 20-21 PPA for 23-24, $12,746 21-22 PPA for 24-25, and $55,197 22-23 PPA for 25-262Revenue/Income (Actual 06/30/24) RPTTF amount should tie to the ROPS 23-24 total distribution from the County Auditor-Controller 3,041,920 3Expenditures for ROPS 23-24 Enforceable Obligations (Actual 06/30/24) 3,053,989 4Retention of Available Cash Balance (Actual 06/30/24) RPTTF amount retained should only include the amounts distributed as reserve for future period(s) 67,943 G: Retain $12,746 21-22 PPA for 24-25 and $55,197 22-23 PPA for 25-26 5ROPS 23-24 RPTTF Prior Period AdjustmentRPTTF amount should tie to the Agency's ROPS 23-24 PPA form submitted to the CAC 1,431 6 Ending Actual Available Cash Balance (06/30/24)C to F = (1 + 2 - 3 - 4), G = (1 + 2 - 3 - 4 - 5) 0$ 0$ 0$ 580,251$ 0$ No entry required
Murrieta Recognized Obligation Payment Schedule (ROPS 26-27) - Report of Cash Balances July 1, 2023 through June 30, 2024(Report Amounts in Whole Dollars) Pursuant to Health and Safety Code section 34177 (l), Redevelopment Property Tax Trust Fund (RPTTF) may be listed as a source of payment on the ROPS, but only to the extent no other funding source is available or when payment from property tax revenues is required by an enforceable obligation. For tips on how to complete the Report of Cash Balances Form, see Cash Balance Tips Sheet.

ROPS 23-24 Cash Balances(07/01/23 - 06/30/24)
Fund Sources
Comments
Bond Proceeds
134
Item #Notes/Comments
Murrieta Recognized Obligation Payment Schedule (ROPS 26-27) - Notes July 1, 2026 through June 30, 2027 135
Expense Category Responsibility Budget
Amount
Personnel Costs
City Manager Department • Provide direction to other staff and consultants as needed $ 4,500 City Attorney Department • Provide general legal services as needed • Review staff reports and resolutions 3,500 Finance Department
• Process payment of enforceable obligations
• Maintain documentation of Agency records
• Coordinate with consultant to answer questions and
provide documentation as requested by Oversight Board,
County Auditor-Controller, and Department of Finance
• Answer questions and provide documentation as
requested by consultant to prepare the PPA
10,800
Successor Agency Staff • Administration and implementation of Agency wind-down 6,750 Total Personnel Costs $ 25,550
Services
Consultants
• Prepare ROPS, PPA, staff reports, and resolutions
• Coordinate with and answer questions for Oversight
Board, County Auditor-Controller, and Department of
Finance
• Attend Successor Agency and Oversight Board meetings
• Monitor and project cash flow to ensure sufficient
revenues for obligations and to inform Agency staff of
expected revenues
$ 15,000
Financial Services • Audits and other financial services as needed 10,100 Total Services Costs $ 25,100
Total Budget
Total Budget Costs $ 50,650

EXHIBIT B
Successor Agency to the Murrieta Redevelopment Agency
Administrative Budget
July 1, 2026 – June 30, 2027
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12/2/2025
Agenda Item No. 9.

TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Brian Crawford, Municipal Services Director
PREPARED BY: Garrett Strang, Capital Projects Program Manager SUBJECT:

Emergency Declaration for Fire Station 2 Showers & Restroom

RECOMMENDATION
Adopt Resolution No. 25-4898, entitled: A Resolution of the City Council of the City of Murrieta, California, Declaring an Emergency and Approving the Execution of a Public Works Contract for the Restoration of Showers and Restroom Facilities at Murrieta Fire and Rescue Station 2 without Notice for Bids Pursuant to California Public Contracts Code Sections 1102, 20168, and 22050; Amend the Capital Improvement Plan Budget for Fiscal Year 2025/26 and appropriate $275,000 from the General Fund Fire Facility Reserve into CIP No. 21038;
Amend the Fiscal Year 2025/26 Operating Budget as referenced in the Fiscal Impact statement; and Authorize the City Manager to execute a Public Works Construction Contract in an amount not to exceed $190,000, plus a 15% contingency, for the Fire Station 2 Showers and Restroom Restoration Project, CIP No. 21038.

PRIOR ACTION/VOTE
On June 3, 2025, the City Council approved Resolution No. 25-4836, approving the Capital Improvement Plan Budget for Fiscal Year 2025/26, and the Fiscal Years 2025/26 to 2029/30 Capital Improvement Plan, which included the Fire Station 1 Site Improvements Project, CIP No. 21019 (Vote 5-0).

CITY COUNCIL GOAL
Provide a high level of innovative public safety.

BACKGROUND
Staff recently encountered a potential mold issue in the walls of the living quarter showers and restroom at Murrieta Fire & Rescue (MFR) Station 2 (Station 2) due to a water leak. Testing by a certified environmental health company confirmed the presence of mold. A separate mold remediation company was hired to isolate the area, treat the mold, and remove affected building materials from the premises.

MFR personnel are currently unable to utilize the showers and restroom and are relying on temporary shower facilities housed in a modular building on-site. Station 2 is in constant operation and serves as living quarters for on-duty personnel. Restoring the facilities to full operation immediately is imperative for the health and well- being of these personnel. For these reasons, staff recommends adopting a resolution declaring an emergency, CITY OF MURRIETA Printed on 11/26/2025Page 1 of 2
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being of these personnel. For these reasons, staff recommends adopting a resolution declaring an emergency, allowing for permitting and public works contracting without using the formal bidding requirements in accordance with applicable Public Contract Code provisions. The capital improvement plan (CIP) budget must also be amended to establish funding for the restoration project using the General Fund Fire Facilities Reserve.

TR Design Group (TR) was contracted using the City’sexisting on-call agreement to perform architectural design services. They are in the process of finalizing plans and specifications that will be used to negotiate a proposal from a qualified contractor to complete the restoration construction as quickly as possible.

Work on this project is expected to start within approximately three weeks and to be completed within three to four weeks thereafter.

FISCAL IMPACT
The Public Works Construction Contract shall not exceed $190,000 for construction, plus an additional fifteen percent (15%) contingency amount of $28,500, for a total not to exceed $218,500. An additional $15,000 is requested to be allocated to CIP No. 21038 to cover administrative and inspection costs. In an effort to ensure the project has sufficient funding for any unanticipated costs, staff recommends that the City Council approve an appropriation of $275,000 into CIP No. 21038, amending the Fiscal Year 2025/26 Capital Improvement Plan Budget.

Staff also recommends an amendment to the FY 2025/26 Operating Budget to establish an appropriation to transfer $275,000 from the General Fund (110) to the General Fund Capital Fund (112) using the General Fund Fire Facility Reserve.

Funding will be available in CIP No. 21038 upon approval of the use of the General Fund Fire Facility Reserve and the requested amendments to the Fiscal Year 2025/26 Operating Budget and Capital Improvement Plan Budget.

ATTACHMENTS

1. Resolution No. 25-4898
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01375.0024/1060955.2
RESOLUTION 25-4898

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MURRIETA,

CALIFORNIA DECLARING AN EMERGENCY AND APPROVING THE

EXECUTION OF A PUBLIC WORKS CONTRACT FOR THE

RESTORATION OF SHOW ERS AND RESTROOM FACILTIES AT
MURRIETA FIRE AND RESCUE STATION 2 WITHOUT NOTICE FOR

BIDS PURSUANT TO CALIFORNIA PUBLIC CONTRACT CODE
SECTIONS 1102, 20168, AND 22050
WHEREAS, staff of the City of Murrieta (“City”) recently encountered a potential mold issue in the living quarters showers and restroom due to a water leak at Murrieta Fire and Rescue Station 2 located at 40060 California Oaks Rd, Murrieta, CA 92562; and WHEREAS, subsequent testing by a certified environmental health company confirmed the presence of mold; and
WHEREAS, a mold remediation company was hired to isolate the area and treat the mold, causing the closure of the showers and restroom; and WHEREAS, as an interim solution, on-duty personnel at Murrieta Fire and Rescue Station 2 are now using portable shower facilities located in a trailer on the property, which impacts their living and working conditions; and
WHEREAS, this closure of the showers and restroom constitutes an “emergency” as that term is defined in Public Contract Code § 1102; and
WHEREAS, pursuant to Public Contract Code §§ 20168 and 22050, contracts for emergency expenditures may be approved by the adoption, by a four -fifths vote, of a resolution declaring that the public interest and necessity demand the immediate expenditure of public money to safeguard life, health, or property such that the City is authorized to procure the necessary equipment, services, and supplies for those purposes, without giving notice for bids to let contracts; and
WHEREAS, the City desires to use the process authorized by Public Contract Code § 22050 to immediately engage a contractor to provide construction services to restore the facilities to usable condition; and
WHEREAS, the current estimated cost of construction is estimated to be less than $190,000, plus a 15% contingency; and
WHEREAS, this emergency declaration must be reviewed every 60 days, until the emergency has ended, to ensure that the need to continue the action continues to exist. 139
01375.0024/1060955.2

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MURRIETA, CALIFORNIA DOES HEREBY RESOLVE AS FOLLOWS:

Section 1. The recitals above are true and correct and incorporated herein by this reference.

Section 2. The City Council finds that the facts set forth above constitute facts demonstrating that an emergency condition exists and that such emergency condition does not permit the delays which would result from a competitive solicitation for bids. The City Council further finds that the immediate reconstruction of the shower and restroom facilities at Murrieta Fire and Rescue Station 2 is necessary to respond to the emergency conditions.

Section 3. The City’s City Manager or his designee is hereby authorized to execute a a Public Works Construction contract, subject to City Attorney approval, secured by the Municipal Services Director, to rebuild the showers and restroom facilities at Murrieta Fire and Rescue Station 2 in an amount not to exceed amount of $190,000, plus a 15% contingency. Section 4. The City Manager shall cause a report on the status of the emergency circumstances to be agendized at a City Council meeting every sixty days until either the City Council finds that the repair work has been completed or that the emergency conditions have ceased to be present.

Section 5. The City Clerk shall certify to the adoption of this Resolution.

PASSED AND ADOPTED this 2nd day of December, 2025.

Cindy Warren, Mayor

ATTEST:

Cristal McDonald, City Clerk
APPROVED AS TO FORM:

Tiffany J. Israel, City Attorney
140
01375.0024/1060955.2

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE )§

CITY OF MURRIETA )

I, Cristal McDonald, City Clerk of the City of Murrieta, California, do hereby certify that the foregoing Resolution No. 25 -4898 was duly passed and adopted by the City Council of the City of Murrieta at the regular meeting thereof, held on the 2nd day of December, 2025, and was signed by the Mayor of the said City, and that the same was passed and adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Cristal McDonald, City Clerk
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CITY OF MURRIETA
City Council Meeting Agenda
Report
12/2/2025
Agenda Item No. 10.

TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Bob Moehling, Public Works Director
PREPARED BY: Jeff Hitch, City Engineer
SUBJECT:

Declaration that Emergency Conditions Persist in Connection with the Hayes Avenue Bridge at Miller Canyon Creek

RECOMMENDATION
Adopt Resolution No. 25-4899 entitled: A Resolution of the City Council of the City of Murrieta, California, Declaring that Emergency Conditions Persist in Connection with the Hayes Avenue Bridge at Miller Canyon Creek.

PRIOR ACTION/VOTE
On June 3, 2025, the City Council approved Resolution No. 25-4836, approving the Capital Improvement Plan Budget for Fiscal Year 2025/26, and the Fiscal Year 2025/26 to 2029/30 Capital Improvement Plan (Vote 5-0).

On June 17, 2025, the City Council adopted Resolution No. 25-4847, declaring that Emergency Conditions persist in connection with the Hayes Avenue Bridge at Miller Canyon Creek (Vote 5-0).

On July 1, 2025, the City Council adopted Resolution No. 25-4863, declaring that Emergency Conditions persist, appropriating funding, and approving the execution of a contract for reconstruction of the Hayes Avenue Bridge at Miller Canyon Creek (Vote 4-0).

On August 19, 2025, the City Council adopted Resolution No. 25-4882, declaring that Emergency Conditions persist in connection with the Hayes Avenue Bridge at Miller Canyon Creek (Vote 5-0).

On October 7, 2025, the City Council adopted Resolution No. 25-4891, declaring that Emergency Conditions persist in connection with the Hayes Avenue Bridge at Miller Canyon Creek (Vote 5-0).

CITY COUNCIL GOAL
Plan, program and create infrastructure development.

DISCUSSION
On February 6, 2025, staff encountered a pothole in the deck of the Hayes Avenue Bridge crossing Miller Canyon Creek, located generally between Ivy Street and B Street. Upon this discovery, Engineering staff believed the bridge could be unsafe and closed the bridge until further evaluation could be completed.

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Agenda Item No. 10.

Michael Baker International (MBI) was contracted using the City’sexisting on-call agreement to perform a structural evaluation of the bridge. The evaluation was performed, and a report was generated and provided to the City. The report concluded that the bridge is structurally deficient for fire truck access and needs to be replaced. The bridge has a span that is 15-feet long, is 24-feet wide, and has concrete abutments with wooden girders and decking covered with asphalt concrete. MBI subsequently provided the City with a proposal to provide environmental and engineering services for engineering plans and emergency environmental permits necessary to replace the bridge with an alternate reinforced concrete box culvert. The Regional Water Quality Control Board rejected the box culvert design resulting in a modification of the design to an arch-span bridge structure that has a soft bottom. The design of that structure is currently underway with Contech Engineered Solutions.

An emergency declaration was made on March 18, 2025, with subsequent declarations made in June, July, August, and October. The emergency declaration now needs to be extended again until the final design can be determined.

The emergency conditions will remain until the bridge has been repaired. Under the California Public Contract Code, the City Council is required to periodically review whether the emergency conditions have abated and/or continue, as well as to adopt a resolution by a four-fifths vote to confirm the continuation of the emergency or to declare the emergency to be concluded.

FISCAL IMPACT
None.

ATTACHMENTS

1. Resolution No. 25-4899

2. Vicinity Map
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01375.0024 2012316.1 6/10/2025
RESOLUTION NO. 25-4899

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MURRIETA,

CALIFORNIA, DECLARING THAT EMERGENCY CONDITIONS PERSIST

IN CONNECTION WITH THE HAYES AVENUE BRIDGE AT MILLER

CANYON CREEK

WHEREAS, after strong winter storms, o n February 6, 2025, City of Murrieta (“City”) staff encountered a pothole in the deck of the Hayes Avenue Bridge crossing Miller Canyon Creek located generally between Ivy Street and B Street (“Bridge”), requiring the City to close the Bridge until further evaluation could be completed; and WHEREAS, on February 11, 2025, a contractor retained by the City conducted a structural evaluation of the Bridge and determined that the Bridge is structurally deficient for fire truck access and needs to be replaced . This unexpected occurrence, which has not yet been remedied, poses a clear and imminent danger requiring immediate action to allow the City to continue providing fire truck access to all of its residents, which is an essential public serv ice, and the closure of the Bridg e constitutes an “emergency” as defined in Public Contract Code § 1102; and
WHEREAS, pursuant to Public Contract Code §§ 20168 and 22050, contracts for emergency expenditures may be approved by the adoptio n, by a four -fifths vote, of a resolution declaring that the public interest and necessity demand the immediate expenditure of public money to safeguard life, health, or property such that the City is authorized to procure the necessary equipment, services, and supplies for those purposes, without giving notice for bids to let contracts; and
WHEREAS, the unexpected occurrence poses City desires to use the process authorized by Public Contract Code § 22050 to immediately investigate and replace the Bridge; and WHEREAS, on March 18, 2025, the City Council adopted Resolution No. 25-4816 by a 5-0 vote to authorize investigations and emergency repair work to the Bridge pursuant to California Public Contract Code Sections 1102, 20168, and 22050; and

WHEREAS, the City Council adopted Resolution No. 25 -4847, d eclaring that Emergency Conditions persist in connection with the Hayes Avenue Bridge at Miller Canyon Creek; and

WHEREAS, on July 1, 2025, the City Council adopted Resolution No. 25 -4863, declaring that Emergency Conditions persist, appropriating funding, and approving the execution of a contract for reconstruction of the Hayes Avenue Bridge at Miller Canyon Creek; and

WHEREAS, on August 19, 2025, the City Council adopted Resolution No. 25 -4882, declaring that Emergency Conditions persist in connection with the Hayes Avenue Bridge at Miller Canyon Creek; and
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WHEREAS, on October 7, 2025, the City Council adopted Resolution No. 25 -4891, declaring that Emergency Conditions persist in connection with the Hayes Avenue Bridge at Miller Canyon Creek; and

WHEREAS, the ongoing structural deficiency continues to constitute an “emergency” as that term is defined in Public Contract Code § 1102; and

WHEREAS, this item will be reviewed until the repair work has been completed, to ensure that the need to continue the emergency action continues to exist.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF
MURRIETA, CALIFORNIA DOES HEREBY RESOLVE AS FOLLOWS:

Section 1. The recitals above are true and correct and incorporated herein by this reference.

Section 2. The City Council finds that the facts set forth above constitute facts demonstrating that an emergency condition exists , has not abated, and that such emergency condition does not permit the delays which would result from a competitive solicitation for bids.

The City Council furth er finds that the immediate replacement of the Bridge is necessary to respond to the emergency conditions.

Section 3. The City Engineer shall cause a report on the status of the emergency circumstances to be agendized at a City Council meeting every sixty days until either the City Council finds that the repair work has been completed or that the emergency conditions have ceased to be present.

Section 4. The City Clerk shall certify to the adoption of this Resolution.

PASSED AND ADOPTED this 2nd day of December, 2025.

Cindy Warren, Mayor

ATTEST:

Cristal McDonald, City Clerk

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APPROVED AS TO FORM:

Tiffany J. Israel, City Attorney

STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE )§

CITY OF MURRIETA )
I, Cristal McDonald, City Clerk of the City of Mur rieta, California, do hereby certify that the foregoing Resolution No. 25-4899 was duly passed and adopted by the City Council of the City of Murrieta at the regular meeting thereof, held on the 2nd day of December, 2025, and was signed by the Mayor of the said City, and that the same was passed and adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Cristal McDonald, City Clerk

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City Council Meeting Agenda
Report
12/2/2025
Agenda Item No. 11.

TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Bob Moehling, Public Works Director
PREPARED BY: Anita Agyeman, Management Analyst - Public Works SUBJECT:

On-Call Professional Services Agreements for Traffic Count Services

RECOMMENDATION
Approve the On-Call Professional Services Agreement with Field Data Services of Arizona, Inc. in an amount not-to-exceed $100,000;
Approve the On-Call Professional Services Agreement with National Data & Surveying Services, Inc. in an amount not-to-exceed $100,000;
Approve the On-Call Professional Services Agreement with Transportation Studies, Inc. in an amount not-to- exceed $100,000; and
Authorize the City Manager to execute the Agreements and any subsequent extensions within the approved threshold.

PRIOR ACTION/VOTE
None.

CITY COUNCIL GOAL
Provide a high level of innovative public safety.

DISCUSSION
The City of Murrieta issued a Request for Proposals (RFP) for on-call professional traffic count services to support traffic engineering, planning, and safety initiatives. A total of three (3) firms submitted proposals, including:
· Field Data Services of Arizona, Inc.;
· National Data & Surveying Services, Inc.,; and
· Transportation Studies, Inc.

Field Data Services (FDS) submitted their proposal, demonstrating over 33 years of experience in traffic data collection across the western United States. FDS operates more than 200 classification/speed counters and 50 video turning movement count units, with proven projects for the cities of San Diego, Chula Vista, El Cajon, La Mesa, and Oceanside. Sharon Morris, President, will serve as the primary contact and project manager, CITY OF MURRIETA Printed on 11/26/2025Page 1 of 2
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Agenda Item No. 11.

La Mesa, and Oceanside. Sharon Morris, President, will serve as the primary contact and project manager, supported by a field supervisor, technicians, and staff dedicated to oversight, data collection, and quality assurance.

National Data & Surveying Services, Inc. (NDS) submitted their proposal, demonstrating over 36 years of experience in traffic data collection across the nation. NDS operates as the largest traffic data collection firm with over 100 full-time employees, having conducted over 700 studies in Murrieta and the surrounding areas over the past year. Abraham Tashman, President, will serve as the primary contact, supported by a Project Manager, a Project Coordinator, and over 20 full-time staff dedicated to oversight, data collection, and quality assurance.

Transportation Studies, Inc. (TSI) submitted their proposal, demonstrating over 28 years of experience in the traffic data collection field. TSI has provided over 25 years of experience to the City of Murrieta in all facets of traffic data collection. Patti Tolton, President, will serve as the primary contact and project coordinator, supported by a Vice-President, a Field Technician, and a Video Technician dedicated to oversight, data collection, and quality assurance.

The proposed Agreements establish on-call services with the above three (3) referenced vendors, effective upon execution through June 30, 2028, with options for three (3) one-year extensions. The total not-to-exceed for the base period beginning on December 2, 2025, and ending on June 30, 2028, is $40,000 per vendor, covering all labor, materials, and pre-approved reimbursable expenses. If the three one-year extensions are executed, the total would increase to $100,000 per vendor.

Staff recommends approval of the three (3) agreements and authorization for the City Manager to execute option periods if the need is present. These on-call Agreements provide flexible, cost-effective access to specialized traffic data that is essential for informed decision-making, with no minimum expenditure commitment. Having three firms on-call for this type of work provides flexibility and options based on individual firm availability to complete traffic studies as the need arises. Funding will be drawn from the Traffic Engineering Operating Budget or traffic related CIP Budgets as tasks are assigned.

FISCAL IMPACT
The proposed agreements authorize a not-to-exceed amount of $300,000 for on-call traffic count services for all three (3) vendors from December 2, 2025, to June 30, 2031, with no-guaranteed minimum expenditure and costs incurred only upon City approval. Funding will be allocated from the Traffic Engineering Operating Budget or traffic-related CIP Budgets on an as-needed basis.

ATTACHMENTS

1. On-Call Professional Services Agreement with FDS

2. On-Call Professional Services Agreement with NDS

3. On-Call Professional Services Agreement with TSI

4. FDS Proposal

5. NDS Proposal

6. TSI Proposal
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For City Clerk Use Only

Contract No._________

AGREEMENT FOR ON-CALL PROFESSIONAL SERVICES
WITH THE CITY OF MURRIETA (“CITY”)
Project Name/Description (“Project”): Traffic Count Services Consultant Name (“Consultant”): Field Data Services of Arizona, Inc.

Consultant Business Type: Corporation
Consultant Address: 31894 Whitetail Lane, Temecula, CA 92592 Consultant Representative Name and Title (“ Consultant Representative ”): Sharon Morris, President
Consultant Representative Work Phone: (520) 316-6745
Consultant Representative Email: [email protected]
Termination Date: June 30, 2028
Total Not-To-Exceed Contract Amount (“Contract Sum”): $100,000.00 City Department Contact (“Department Contact”): Jeff Hitch Department Contact Work Phone: (951) 461-6076
Department Contact Email: [email protected]
Is Federal Funding Being Used to Fund Any Part of The Project (Yes/No): No

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RECITALS
The City desires to contract with a Consultant to provide professional services on an on- call basis as more further set forth herein.

The City circulated a Request for Quotes or Proposals for the above-described professional services.

Consultant submitted a proposal to City to provide the above -described professional services.

City Staff has reviewed all the proposals and after considering the demonstrated competence of Consultant, the professional qualifications of Consultant, and the fairness and reasonableness of Consultant’s proposed cost, staff has determined that an agreeme nt to provide the required services should be awarded to Consultant.

The Consultant shall perform the following traffic count services on a typical weekday (Tuesday, Wednesday, or Thursday) when area schools are in session:

1. Conduct 24-hour machine (tube) counts for traffic volume, providing data to the City for each direction and combined directions.

2. Conduct 24-hour machine (tube) counts for traffic volume and speed, providing data to the City for each direction and combined directions.

3. Conduct 24-hour machine (tube) counts for traffic volume, speed, and vehicle classification, providing data to the City for each direction and combined directions.

4. Conduct turning movement counts from 7:00 a.m. to 9:00 a.m. and 4:00 p.m. to 6:00 p.m., including passenger vehicles, trucks, pedestrians, and bicyclists, with separate printouts for each category provided to the City.

5. Conduct turning movement counts from 6:00 a.m. to 9:00 a.m., 11:00 a.m. to 1:00 p.m., and 2:00 p.m. to 6:00 p.m. near school z ones, to include passenger vehicles, trucks, pedestrians, and bicyclists, with separate printouts for each category provided to the City.

6. Conduct radar surveys for speed ordinance updates per the California Manual on Uniform Traffic Control Devices (MUTCD), providing the City with a summary of surveyed speeds (e.g., 85th percentile speed) for each direction and combined directions.

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AGREEMENT FOR PROFESSIONAL SERVICES
WITH THE CITY OF MURRIETA (“CITY”)

THIS AGREEMENT FOR SERVICES (“Agreement”) is made and entered into as of the effective on the date executed by the City by and between CITY OF MURRIETA, a California municipal corporation (“ City”) and (“ Consultant”). City and Consultant may be referred to individually as “Party” or collectively as “Parties.” In consideration of the mutual promises and covenants made by the Parties and contained herein and other consideration, the value and adequacy of which are hereby acknowledged, the Parties agree as follows:

ARTICLE 1. SERVICES OF CONSULTANT

1.1 Scope of Services. In compliance with all terms and conditions of this Agreement, Consultant shall provide those services specified in the “ Scope of Services ” attached hereto as Exhibit “A” and incorporated herein by this reference, which may be referred to herein as the “ services” or “ work” hereunder. As a material inducement to City entering into this Agreement, Consultant represents and warrants: a) it has the qualifications, experience, and facilities necessary to properly perform the Services required under this Agreement b) all services set forth in the Scope of Services will be performed in a competent and satisfactory manner; c) all materials used for services will be both of good quality as well as fit for the purpose intended; and, d) Consultant shall follow the highest professional standards and practices in performing the services required hereunder. Individual tasks under the Scope of Services shall be established on a per project basis. Upon request by City, the Consultant shall provide a detailed task proposal including pricing consistent with those hourly rates as provided in Article II, below. Consultant shall not commence work until an Task Order is issued by the City authori zing the Consultant to perform such work.

1.2 Consultant’s Proposal. The Scope of Services shall include the scope of services or work included in Consultant’s proposal or bid , which shall be incorporated herein by this reference as though fully set forth herein. In the event of any inconsistency between the terms of such proposal or bid, and this Agreement, the terms of this Agreement shall govern. No other terms and conditions from Consultant’s proposal or bid, other than description of scope of services or work, shall apply to this Agreement, unless specifically agreed to by City in writing.

1.3 Compliance with Law. All services rendered hereunder shall be provided in accordance with all ordinances, resolutions, statutes, rules and regulations of City and any federal, State or local governmental agency having jurisdiction in effect at the time services are rendered. City, and its officers, employees and agents, shall not be liable at law or in equity for failure of Consultant to comply with this Section.

1.4 Licenses, Permits, Fees and Assessments. Consultant shall obtain at its sole cost and expense such licenses, permits and approvals as may be required by law for the performance of the services required by this Agreement. Consultant shall have the sole obligation to pay for any fees, assessments and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for 152

Consultant’s performance of the services required by this Agreement, and shall indemnify, defend and hold harmless City against any such fees, assessments, taxes, penalties or interest levied, assessed or imposed against City hereunder.

1.5 Familiarity with Work. By executing this Agreement, Consultant represents and warrants Consultant: a) has thoroughly investigated and considered services to be performed, b) has carefully considered how services should be performed, and c) fully understands the facilities, difficulties and restrictions attending performance of services under this Agreement.

1.6 Software and Computer Services. If the Scope of Services includes the provision and/or installation of any software, computer system, or other computer technology, Consultant represents a nd warrants that it is familiar with and/or has inspected City’s current infrastructure, equipment, computer system and software and that the software, computer system, or other computer technology provided and/or installed by Consultant under this Agreeme nt is compatible, and shall be fully functional, with such infrastructure, equipment, computer system and software of City. Consultant acknowledges that City is relying on this representation by Consultant as a material consideration in entering into this Agreement.

1.7 Prevailing Wages. If services include any “public work” or “maintenance work,” as those terms are defined in California Labor Code section 1720 et seq. and California Code of Regulations, Title 8, section 16000 et seq. , and if the total compensation is $1,000 or more, Consultant shall pay prevailing wages for such work and comply with the requirements in California Labor Code section 1770 et seq. and 1810 et seq., and all other applicable laws.

1.8 Contract Modifications. Additional terms and conditi ons of this Agreement, if any, or any modifications or revisions to the standard terms and conditions herein are made a part hereof as set forth in the “Contract Modifications” attached hereto as Exhibit “B” and incorporated herein by this reference. In the event of a conflict between the provisions of Exhibit B and any other provisions of this Agreement, the provisions of Exhibit B shall govern.

ARTICLE 2. COMPENSATION AND METHOD OF PAYMENT

2.1 Contract Sum. Subject to any limitations set forth in this Agreement, City agrees to pay Consultant the fixed prices and/or hourly rates specified in the “Schedule of Compensation” attached hereto as Exhibit “C” and incorporated herein by this reference. The total compensation for all work, including reimbursement for actual expenses, shall not exceed the Contract Sum set forth above . Compensation may include reimbursement, for actual and necessary expenditures, if both are specified in the Schedule of Compensation or upon a Task Order , and approved by City in advance.

2.2 Invoices. Unless some other method of payment is specified in Exhibit C, Schedule of Compensation, in any month in which Consultant wishes to receive payment, no 153

later than the first business day of such month, Consultant shall submit to City, in a form approved by City’s Finance Director, an invoice for services rendered prior to the date of the invoice. By submitting an invoice for payment under this Agreement, Consultant is certifying compliance with all provisions of this Agreement. Except as provided in Section s 7.3, 7.4 and 7.5, City shall pay Consultant for all expenses stated thereon which are approved by City pursuant to this Agreement generally within thirty (30) days, and City will use its best efforts to make payment no later than forty -five (45) days, fro m the submission of an invoice in an approved form. In the event any charges or expenses are disputed by City, the original invoice shall be returned by City to Consultant for correction and resubmission. Review and payment by City for any invoice provided by Consultant shall not constitute a waiver of any rights or remedies provided herein or any applicable law. Each invoice is to include (unless otherwise specified by City) : 1) line items for all personnel describing the work performed, the number of hour s worked, and the hourly rate; 2) line items for all materials and equipment properly charged to the Services; 3) line items for all other approved reimbursable expenses claimed, with supporting documentation ; and 4) l ine items for all approved subcontractor labor, supplies, equipment, materials, and travel properly charged to the Services.

ARTICLE 3. PERFORMANCE SCHEDULE

3.0 Time of Essence. Time is of the essence in the performance of this Agreement.

3.1 Term. The Agreement shall commence and become effective on the date executed by the City and will continue until the Termination Date. This Agreement may be extended for up to two, additional one -year periods upon the mutual agreement in writing of both parties.

Unless earlier terminated in accordance with Article 7 of th is Agreement, this Agreement shall continue in full force and effect until completion of any ongoing services, which shall be no later than the Termination Date set forth above.

Notwithstanding the foregoing, the Indemnification and Insurance provisions se t forth in Article 5 shall survive the termination of this Agreement.

3.2 Schedule of Performance. Consultant shall commence the services pursuant to this Agreement upon receipt of a written Task Order and shall perform all services within the time period(s) established in the Task Order or generally within the time periods established in the Exhibit A.

3.3 Force Majeure. The time period(s) specified in Exhibit A for performance of the services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of Consultant, including, but not restricted to, acts of God or of the public enemy, unusually severe weather, fires, earthquakes, floods, epidemics, quarantine restrictions, riots, strikes, freight embargoes, wars, litigation, and/or acts of any governmental agency, including City, if Consultant shall within ten (10) days of the commencement of such delay notify City in writing of the causes of the delay. 154

City shall ascertain the facts and the extent of delay, and extend the time for performing the services for the period of the enforced delay when and if in the judgment of City such delay is justified. City’s determination shall be final and conclusive upon th e Parties to this Agreement. In no event shall Consultant be entitled to recover damages against City for any delay in the performance of this Agreement, however caused, Consultant’s sole remedy being extension of this Agreement pursuant to this Section.

ARTICLE 4. COORDINATION OF WORK

4.1 Representative of Consultant. The Consultant Representative is authorized to act on Consultant’s behalf with respect to the work or services specified herein and to make all decisions in connection therewith. It is expressly understood that the experience, knowledge, capability and reputation of the representative was a substantial inducement for City to enter into this Agreement. Therefore, the representative shall be responsible during the term of this Agreement for directing all activities of Consultant and devoting sufficient time to personally supervise the services hereunder. For purposes of this Agreement, the representative may not be replaced nor may their responsibilities be substantially reduced by Consultant without the express written approval of City.

4.2 Department Contact for City . The Department Contact (or other person designated by the City Manager) shall be the primary person on behalf of City responsible for the administration of the Agreement. It shall be Consultant’s responsibility to assure that the Department Contact is kept informed of both the progress of the performance of the services as well as any decisions which must be made by City.

4.3 Approvals from City. City approvals or actions, pursuant to the authority of this Agreement, are to be made (unless otherwise specified) either by the Department Contact, City Manager or by their delegate as provided for in writing.

4.4 Independent Co ntractor. Neither City , nor any of its officers, employees or agents, shall have any control over the manner or means by which Consultant , or its officers, employees, agents or subcontractors , perform the services required herein, except as otherwise set forth herein. Consultant shall perform all services required herein as an independent contractor of City and shall remain under only such obligations as are consistent with that role. Consultant shall not at any time or in any manner represent that it, or any of its officers, employees, agents or subcontractors, are officers, employees or agents of City. City shall not in any way or for any purpose become or be deemed to be a partner of Consultant in its business or otherwise or a joint venturer or a member of any joint enterprise with Consultant.

Consultant shall not incur or have the power to incur any debt, obligation or liability whatever against City, or bind City in any manner. Consultant represents and warrants that the personnel used to provide services to City pursuant to this Agreement shall at all times be under Consultant’s exclusive control and direction.

No City employee benefits shall be available to Consultant, its officers, employees, agents or subcontractors, in connection with the performance of this Agreement. 155

City shall not be liable for compensation or ind emnification to Consultant , its officers, employees, agents or subcontractors, for injury or sickness arising out of performing services hereunder. In the event that Consultant or any officer, employee, agent, or subcontractor of Consultant providing servi ces under this Agreement claims or is determined by a federal or state agency, a court of competent jurisdiction, or the California Public Employees’ Retirement System, to be classified as other than an independent contractor for City, then Consultant shall indemnify, defend, and hold harmless City for the payment of any and all assessed fines, penalties, judgments, employee and/or employer contributions, and any other damages and costs assessed to City as a consequence of, or in any way attributable to, the assertion that Consultant, or any officer, employee, agent, or subcontractor Consultant used to provide services under this Agreement, is/are employees of City.

4.5 Subcontracting or Assignment. The experience, knowledge, capability and reputation of Consultant, its principals and employees were a substantial inducement for City to enter into this Agreement. Therefore, without express written approval of City, Consultant shall not contract with any other City to perform in whole or in part services req uired hereunder without express written approval of City , and n either this Agreement nor any interest herein may be transferred or assigned. No approved transfer shall release Consultant, or any surety or insured of Consultant, of any liability hereunder without express written consent of City.

ARTICLE 5. INSURANCE AND INDEMNIFICATION

5.1 Insurance Coverages. Prior to commencement of any services under this Agreement, and without limiting Consultant’s indemnification obligation to City, Consultant shall procure and maintain, at its sole cost and expense, in a form and content satisfactory to City, for the duration of the Agreement, primary policies of insurance of the type and amounts set forth in the “Insurance Requirements” attached hereto as Exhibit “D” and incorporated herein by this reference.

5.2 Indemnification.
(a) General Obligations. Except as set forth for Design Professionals below, Consultant agrees, to the full extent permitted by law, to indemnify, defend and hold harmless City and its elected and appointed officers, employees and agents (each an “Indemnitee” and collectively, “Indemnitees”) against, and will hold and save them and each of them harmless from, whether actual or threatened, any and all actions, either judicial, administrative, arbitration or regulatory claims, damages to persons or property, losses, costs, penalties, obligations, errors, omissions or liabilities (herein “Claims or Liabilities”) that may be asserted or claimed by any person, firm or City arising out of or in connection with the negligent performance of the work, operations or activities provided herein of Consultant, its officers, employees, agents, subcontractors, or invitees, or any individual or City for which Consultant is legally liable (each an “ Indemnitor” and collectively, “Indemnitors”), or arising from Indemnitors’ reckless or willful miscondu ct, or arising from Indemnitors’ negligent performance of or failure to perform any term, 156

provision, covenant or condition of this Agreement, and in connection therewith:
1) Consultant will defend any action or actions filed or threatened in connection with any such Claims or Liabilities, or at option of Indemnitee(s) will reimburse and pay for all costs and expenses, including legal costs and attorneys’ fees, incurred by Indemnitee(s) in connection therewith; and, 2) Consultant will promptly pay any judgment rendered against Indemnitee(s) for any such Claims or Liabilities, and will save and hold Indemnitee(s) harmless therefrom. (b) Further Provisions. The indemnity obligation herein shall be binding on successors, assigns and heirs of Consultant and shall sur vive termination of this Agreement. Consultant shall incorporate similar indemnity agreements as provided herein with its subcontractors, and if Consultant fails to do so Consultant shall be fully responsible to indemnify City hereunder therefor. Failure of City and/or City Parties (collectively “City” for solely this Section 5. 2(b)) to monitor compliance with any of the indemnification provisions herein shall not be a waiver hereof. The indemnification provisions herein do not apply to claims or liabilities occurring as a result of City’s sole negligence or willful misconduct, but, to the fullest extent permitted by law, shall apply to claims and liabilities resulting in part from City’s negligence, except that design professionals’ indemnity hereunder shall be limited to claims and liabilities arising out of the negligence, recklessness or willful misconduct of the design professional. The indemnification provided herein includes Claims or Liabilities arising from any negligent or wrongful act, error or omission, or reckless or willful misconduct of Indemnitors in the performance of professional services hereunder. Payment of invoices by City is not a condition precedent to enforcement of the indemnity obligation herein. In the event of any dispute between C onsultant and City, as to whether liability arises from the sole negligence or willful misconduct of City, Consultant will be obligated to pay for City’s defense until such time as a final judgment has been entered adjudicating City as solely negligent or responsible for willful misconduct. Consultant will not be entitled in the absence of such a determination to any reimbursement of defense costs including but not limited to attorney’s fees, expert fees and costs of litigation. (c) Pursuant to the full languag e of California Civil Code §2782, and only if Consultant qualifies as a D esign Professional , Consultant agrees to indemnify, including the cost to defend, City and its officers, officials, employees, and volunteers from and against any and all claims, dema nds, costs, or liability that arise out of, or pertain to, or relate to the negligence, recklessness, or willful misconduct of Consultant and its employees or agents in the performance of services under this contract, but this indemnity does not apply to l iability for damages arising from the sole negligence, active negligence, or willful acts of the City; and does not apply to any passive negligence of the City unless caused at least in part by the Consultant. The City agrees that in no event shall the cos t to defend charged to the Consultant exceed Consultant’s proportionate percentage of fault.

This duty to indemnify shall not be waived or modified by contractual agreement or acts of the parties.

5.3 Professional Liability. When the law establishes a professi onal standard of care for Consultant’s services, to the fullest extent permitted by law, Consultant shall 157

indemnify, defend and hold harmless Indemnitees against, and will hold and save them and each of them harmless from, whether actual or threatened, any and all Claims and Liabilities, consistent with all obligations provided for in this Section

5.3, to the extent same are caused in whole or in part by any negligent or wrongful act, error or omission, or reckless or willful misconduct of Indemnitors in th e performance of professional services under this Agreement.

ARTICLE 6. RECORDS, REPORTS AND RELEASE OF INFORMATION

6.1 Records. Consultant shall keep, and require subcontractors to keep, such ledgers, books of accounts, invoices, vouchers, canceled checks, reports, studies or other documents relating to the disbursements charged to City and services performed hereunder (“books and records ”) as shall be necessary to perform the services required by this Agreement and enable City to evaluate the performance of such services. Any and all such books and records shall be maintained in accordance with generally accepted accounting principles, shall be complete and detailed, and shall be readily accessible . City shall have full and free access to such books and records at al l times during normal business hours of City, including the right to inspect, copy, audit and make records and transcripts. Such books and records shall be maintained for a period of three (3) years following completion of the services hereunder. City shall have access to such books and records in the event any audit is required. Consultant shall fully cooperate with City in providing access to any and all Consultant records and documents if a public records request is made and disclosure is required by law including but not limited to the California Public Records Act.

6.2 Ownership of Documents. All drawings, specifications, maps, designs, photographs, studies, surveys, data, notes, computer files, reports, records, documents and other materials (“ documents and materials ”) prepared by Consultant, its officers, employees, agents and subcontractors in the performance of this Agreement shall be the property of City and shall be delivered to City upon request of City and/or upon the termination of this Agreement, and Consultant shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership , use, reuse, or assignment of the documents and materials hereunder. Consultant may retain copies of s uch documents and materials for its own use. Consultant shall have the right to use the concepts embodied therein. All subcontractors shall provide for assignment to City of any documents and materials prepared by them, and in the event Consultant fails to secure such assignment, Consultant shall indemnify City for all damages resulting therefrom. Moreover, with respect to any Consultant documents and materials that may qualify as “works made for hire” as defined in 17 U.S.C. § 101, such documents and materials are hereby deemed “works made for hire” for City.

6.3 Confidentiality and Release of Information. All information gained or work product produced by Consultant in its performance of this Agreement shall be considered confidential, unless such information is in the public domain or already known to Consultant. Consultant shall not release or disclose any such information or work product to persons or entities other than City without prior written 158

authorization from City. Consultant, its officers, employees , agents or subcontractors, shall not, without prior written authorization from City or unless requested by the City Attorney, voluntarily provide documents, declarations, letters of support, testimony at depositions, response to interrogatories or other information concerning the work performed under this Agreement. Response to a subpoena or court order shall not be considered “voluntary” provided Consultant immediately gives City notice of such court order or subpoena. If Consultant, or any officer, emplo yee, agent or subcontractor of Consultant, provides any information or work product in violation of this Agreement, then City shall have the right to reimbursement and indemnity from Consultant for any damages, costs and fees, including attorney’s fees, caused by or incurred as a result of Consultant’s conduct. As concerning, r egarding or related to, in any way, this Agreement and the work performed thereunder: a) Consultant shall immediately notify City should Consultant, its officers, employees, agents or subcontractors be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admiss ions or other discovery request, court order or subpoena from any party ; b) City retains the right, but has no obligation, to represent Consultant or be present at any deposition, hearing or similar proceeding; and, c) Consultant agrees to cooperate fully with City and to provide City with the opportunity to review any response to discovery requests provided by Consultant , however, this right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response.

ARTICLE 7. ENFORCEMENT OF AGREEMENT AND TERMINATION

7.1 California Law. This Agreement shall be interpreted, construed and governed both as to validity and to performance of the Parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Riverside, State of California, or any other appropriate court in such county, and Consultant agrees to submit to the personal jurisdiction of such court in the event of such action. In the event of litigation in a U.S. District Court, venue shall lie exclusively in the Central District of California, in the County of Riverside, State of California.

7.2 Suspension, or Termination, Prior to Expiration of Term. This Section sha ll govern any termination of this Agreement except as specifically provided in Section

7.4 for termination for cause. City reserves the right to terminate or suspend this Agreement, or any portion hereof, at any time, for any reason, with or without cause, upon ten (10) days’ notice to Consultant, except that where termination or suspension is due to the fault of Consultant, the period of notice may be such shorter time as determined by City. Upon receipt of any notice of termination or suspension, Consultant shall immediately cease all services hereunder , unless the notice provides otherwise, or except such as specifically approved by City. Upon submittal of an invoice consistent with Section 2. 2, Consultant shall be entitled to compensation for all service s rendered prior to the effective date of the notice of termination or suspension and for any services authorized by City thereafter in accordance with the Schedule of Compensation, or such a s may be approved by 159

City, except as provided in Section 7.5. In event of termination , or suspension, without cause pursuant to this Section, there is no need to provide opportunity to cure pursuant to Section 7.3.

7.3 Default of Consultant and Opportunity to Cure. In the event that Consultant is in default under the terms of this Agreement, City shall not have any obligation or duty to continue compensating Consultant for any work performed after the date of default. Instead, City may give notice to Consultant of the default and the reasons for the default. The notice shall include the timeframe in which Consultant may cure the default. This timeframe is presumptively t en (10) days, but may be extended, or reduced, if circumstances warrant, as determined by City. During the period of time that Consultant is in default, City shall hold all invoices and shall, when the default is cured, proceed with payment on the invoices , without liability for interest. In the alternative, City may, in its sole discretion, elect to pay some or all of the outstanding invoices during the period of default. If Consultant does not cure the default by conclusion of noticed timeframe , City may immediately both terminate this Agreement with notice to Consultant as well as pursue the remedy in Section 7.4, without prejudice to any other rem edy to which City may be entitled at law, in equity or under this Agreement . Any failure on the part of City to give notice of Consultant’s default shall not be deemed to result in a waiver of City’s legal rights or any rights arising out of any provision of this Agreement.

7.4 Termination for Default of Consultant. If termination is due to the failure of Consultant to fulfill its obligations under this Agreement, City may, after compliance with the provisions of Section 7.3, take over the work and prosecute the same to completion by contract or otherwise, and Consultant shall be liable to the extent that the total cost for completion of the services required hereunder exceeds the compensation herein stipulated (provided that City shall use reasonable efforts to mitigate s uch damages), and City may withhold any payments to Consultant for the purpose of set-off or partial payment of the amounts owed City therefor.

7.5 Retention of Funds. Consultant hereby authorizes City to deduct from any amount payable to Consultant (whether or not arising out of this Agreement) (i) any amounts the payment of which may be in dispute hereunder or which are necessary to compensate City for any losses, costs, liabilities, or damages suffered by City, and (ii) all amounts for which City may be lia ble to third parties, by reason of Consultant’s acts or omissions in performing or failing to perform Consultant’s obligation under this Agreement. In the event that any claim is made by a third party, the amount or validity of which is disputed by Consult ant, or any indebtedness shall exist which shall appear to be the basis for a claim of lien, City may withhold from any payment due, without liability for interest because of such withholding, an amount sufficient to cover such claim. The failure of City t o exercise such right to deduct or to withhold shall not, however, affect the obligations of Consultant to insure, indemnify, and protect City as elsewhere provided herein.

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7.6 Waiver. Waiver by any Party to this Agreement of any term, condition, or covenant of this Agreement shall not constitute a waiver of any other term, condition, or covenant. Waiver by any Party of any breach of the provisions of this Agreement shall not constitute a waiver of any other provision or a waiver of any subsequent breach or violation of any provision of this Agreement. Acceptance by City of any work or services by Consultant shall not constitute a waiver of any of the provisions of this Agreement. No delay or omission in the exercise of any right or remedy by a non -defaulting Party on any default shall impair such right or remedy or be construed as a waiver. Any waiver by either Party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement. Consultant acknowledges and agrees that any actual or alleged failure on the part of City to inform Consultant of non -compliance with any requirement of this Agreement imposes no additional obligations on City nor does it waive any rights hereunder. Payment to Consultant for work performed pursuant to this Agreement shall not be deemed to waive any defects in work performed by Consultant.

7.7 Rights and Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the Parties are cumulative and the exercise by either Party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for t he same default or any other default by the other Party.

7.8 Legal Action. In addition to any other rights or remedies, either Party may take legal action, in law or in equity, to cure, correct or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement. Notwithstanding any contrary provision herein, Consultant shall file a statutory claim pursuant to Government Code sections 905 et seq. and 910 et seq., in order to pursue a legal action under this Agreement.

7.9 Attorneys’ Fees. If either Party to this Agreement is required to initiate or defend or made a party to any action or proceeding in a ny way connected with this Agreement, the prevailing party in such action or proceeding, in addition to any other relief which may be granted, whether legal or equitable, shall be entitled to reasonable attorneys ’ fees. Attorneys’ fees shall include attorn eys’ fees on any appeal, and a Party entitled to attorneys’ fees shall be entitled to all other reasonable costs for investigating such action, consultants’ fees, taking depositions and discovery and all other necessary costs the court allows which are incurred in such 161

litigation. Such fees and costs shall be enforceable whether or not such action is prosecuted to judgment.

ARTICLE 8. INDIVIDUAL LIABILITY, CONFLICTS AND NON-DISCRIMINATION

8.1 Non-liability of City Officers and Employees. No officer or employee of City shall be personally liable to Consultant, or any successor in interest, in the event of any default or breach by City or for any amount which may become due to Consultant or to its successor, or for breach of any obligation of the terms of this Agreement.

8.2 Conflict of Interest. Consultant covenants that neither it, nor any officer or principal of its firm, has or shall acquire any interest, directly or indirectly, which would conflict in any manner with the interests of City or which would in any way hinder Consultant’s performance of services under this Agreement. Consultant further covenants that in the performance of this Agreement, no person having any such interest shall be employed by it as an officer, employee, agent or subcontractor without the express written consent of City. Consultant agrees to at all times avoid conflicts of interest or the appearance of any conflicts of interest with the interests of City in the performance of this Agreement. City, in its sole discretion, shall determine the existence of a conflict of interest and may terminate this Agreement in the event such a conflict of interest exists upon sending Consultant written notice describing the conflict. No officer or employee of City shall have any financial interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to this Agreement which affects their financial interest or the financial interest of any corporation, partnership or association in which they are, directly or indirectly, interested, in violation of any State statute or regulation. Consultant warrants that it has not paid or given and will not pay or give any third party any money or other consideration for obtaining this Agreement.

8.3 Covenant Against Discrimination. Consultant covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, gender, sexual orientation, marital status, national origin, ancestry or other protected class in the performance of this Agreement. Consultant shall take affirmative action to insure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, gender, sexual orientation, marital status, national origin, ancestry or other protected class.

ARTICLE 9. MISCELLANEOUS PROVISIONS

9.1 Notices. Any notice or other communication either Party desires or is required to give to the other Party or any other person in regards to this Agreement must be in writing and may be given either by (i) personal service, (ii) delivery by a reputable document delivery service, such as but not limited to, Federal Express, which provides a receipt showing date and time of delivery, or (iii) mailing in the United States Mail, certified mail, postage prepaid, return receipt requested, in the case of 162

City addressed to City Clerk at City of Murrieta, 1 Town Square, Murrieta California 92562, and in the case of Consultant, to the person(s) at the address designated on the cover page of this Agreement. Either Party may change its address by notifying the other Party of the change of address in writing. Notice shall be deemed communicated at the time personally delivered or in seventy -two (72) hours from the time of mailing if mailed as provided in this Section.

9.2 Interpretation. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either Party by reason of the authorship of this Agreement , headings used, or any other rule of construction which might otherwise apply.

9.3 Counterparts. This Agreement may be executed i n counterparts, each of which shall be deemed an original, and such counterparts shall constitute one and the same instrument.

9.4 Integration; Amendment. This Agreement including the attachments hereto is the entire, complete and exclusive expression of the understanding of the Parties as to the Agreement . It is understood that there are no oral agreements between the Parties hereto affecting this Agreement, and this Agreement supersedes and cancels any and all prior and contemporaneous negotiations, arrangements, agreements and understandings, if any, between the Parties, concerning this Agreement, and none shall be used to interpret this Agreement. No amendment to or modification of this Agreement shall be valid unless made in writing and approved by Consultant and by City.

9.5 Severability. Should a portion of this Agreement be declared invalid or unenforceable by a judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the rema ining portions of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the Parties unless the invalid provision is so material that its invalidity deprives either Party of the basic benefit of their barg ain or renders this Agreement meaningless.

9.6 No Undue Influence. Consultant declares and warrants that no undue influence or pressure was used against or in concert with any officer or employee of City in connection with the award, terms or implementation of this Agreement, including any method of coercion, confidential financial arrangement, or financial inducement. No officer or employee of City has or will receive compensation, directly or indirectly, from Consultant, or from any officer, employee or agent of Consultant, in connection with the award of this Agreement or any work to be conducted as a result of this Agreement. Violation of this Section shall be a material breach of this Agreement entitling City to remedies in Section 7.4 and any and all remedies at law or equity.

9.7 Corporate Authority. The persons executing this Agreement on behalf of the Parties hereto warrant that (i) such Party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of sai d Party, 163

(iii) by so executing this Agreement, such Party is formally bound to the provisions of this Agreement, and (iv) entering into this Agreement does not violate any provision of any other agreement to which said Party is bound. This Agreement shall be binding upon the heirs, executors, administrators, successors and assigns of the Parties.

9.8 Federal Funding. If federal funding is being utilized to fund any part of the Project, as indicated on the Cover Page of this Agreement, the terms of Exhibit “E” are hereby incorporated herein by this reference. If no federal funding is being utilized, Exhibit F may be omitted.

[SIGNATURES ON FOLLOWING PAGE]
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IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the date and year first-above written.

CITY OF MURRIETA ATTEST:

By:_____________________________ By:_____________________________ Justin Clifton, City Manager Cristal McDonald, City Clerk Date: ___________________________ Date: ___________________________

APPROVED AS TO FORM

ALESHIRE & WYNDER, LLP
By: ____________________________
Tiffany Israel, City Attorney

CONSULTANT:

By:_____________________________ By:_____________________________ Name: Sharon Morris Name: Jerry Morris
Title: President Title: Treasurer
Date: ___________________________ Date: ___________________________

Two corporate officer signatures required when Contractor is a corporation, with one signature required from each of the following groups: 1) Chair person of the Board, President or any Vice President; and 2) Secretary, any Assistant Secretary, Chief Financial Officer or any Assistant Treasurer. (Cal. Corp. Code § 313.) Appropriate attestations shall be included as may be required by the bylaws, articles of incorporation or other rules or regulations applicable to Contractor’s business City. 165

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EXHIBIT "A"

SCOPE OF SERVICES
I. Consultant will perform the following Services on an on-call basis:

Traffic count services on a typical weekday (Tuesday, Wednesday, or Thursday) when area schools are in session:

1. Conduct 24-hour machine (tube) counts for traffic volume, providing data to the City for each direction and combined directions.

2. Conduct 24-hour machine (tube) counts for traffic volume and speed, providing data to the City for each direction and combined directions.

3. Conduct 24 -hour machine (tube) counts for traffic volume, speed, and vehicle classification, providing data to the City for each direction and combined directions.

4. Conduct turning movement counts from 7:00 a.m. to 9:00 a.m. and 4 :00 p.m. to 6:00 p.m., including passenger vehicles, trucks, pedestrians, and bicyclists, with separate printouts for each category provided to the City.

5. Conduct turning movement counts from 6:00 a.m. to 9:00 a.m., 11:00 a.m. to 1:00 p.m., and 2:00 p.m. to 6:00 p.m. near school zones, to include passenger vehicles, trucks, pedestrians, and bicyclists, with separate printouts for each category provided to the City.

6. Conduct radar surveys for speed ordinance updates per the California Manual on Uniform Traffic Control Devices (MUTCD), providing the City with a summary of surveyed speeds (e.g., 85th percentile speed) for each direction and combined directions.

II. Consultant must perform all on -call Services in compliance with the following requirements:

A. Each task shall be indicated by a written request (“ Task Order”) produced by the Department Contact with a description of the work to be performed, and the time desired for completion. All tasks shall be carried out in conformity with all provisions of this Agreement.

B. Consultant must prepare a written description of the requested tasks including all components and subtasks; the costs to perform the task (“Task Budget”), using the itemized fees in Exhibit C, Schedule of Compensation, whenever a requested task is provided for in Exhibit C; explain how the cost was determined; and, a schedule for 166

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completion of the task (“Task Completion Date”); which shall all collectively be referred to as the “Task Proposal”.

C. Department Contact shall in writing approve, modify or reject t he Task Proposal, and may issue a Task Order.

D. The task shall be performed at a cost not to exceeding the Task Budget.

E. Consultant shall complete the task and deliver all deliverables to Department Contact by the Task Completion Date.

III. All work product is subject to review and acceptance by the City, and must be revised by the Consultant without additional charge to the City until found satisfactory and accepted by City.

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EXHIBIT "B"

CONTRACT MODIFICATIONS
(Superseding Contract Boilerplate)

Article 3, Section 3.1 of the Agreement is hereby replaced in its entirety to read as follows:

3.1 Term. The Agreement shall commence and become effective on the date executed b y the City and will continue until the Termination Date of June 30, 2028. This Agreement may be extended for up to three additional one -year periods based on satisfactory performance of the services called for in the Agreement, at the discretion of the City Manager with at least thirty (30) days written notice prior to the expiration of the initial term or any subsequent annual renewal.

Unless earlier terminated in accordance with Article 7 of this Agreement, this Agreement shall continue in full force and effect until completion of any ongoing services, which shall be no later than the Termination Date forth above. Notwithstanding the foregoing , the Indemnification and Insurance provisions set forth in Article 5 shall survive the termination of the Agreement.

Exhibit D, Section 6 of the Agreement is hereby replaced in its entirety to read as follows:

6. Technology Professional Liability Errors & Omissions is not required.

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EXHIBIT “C”

SCHEDULE OF COMPENSATION

I. Consultant shall establish a Task Budget for each Task identifying the subtasks, based on the time and rates of the personnel performing the subtasks, and itemizing all materials and equipment utilized and the costs thereof. If payment is to be made other than at completion of the services, then the phases of the performance and percentage of payment due shall also be shown in the Task Proposal.

II. The total compensation for all Services, including any and all expenses, during the entire term of this Agreeme nt shall not exceed the Contract Sum as provided in the Cover Page of this Agreement.

III. Consultant’s billing rates for any hourly Services are attached as Exhibit C-1.

In connection with the services provided pursuant to the terms of this Agreement, City will pay Consultant upon City’s receipt of a written invoice provided by Consultant no more than monthly. City will pay Consultant for work completed, billed in increments of six minutes (0.1 hours), not to exceed the Contract Sum. The City will reimburse the Consultant for reasonable out -of-pocket expenses related to performing services on behalf of the Client that are approved in advance in writing by the City such as mileage, copies, binding costs, postage, parking, travel, and lodging expenses as part of the not to exceed Contract Sum. To receive reimbursements, the Consultant must provide the City with a receipt and a description of the expense incurred along with the invoice.

No mark up on expenses may be added.

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EXHIBIT “D”

INSURANCE REQUIREMENTS

Consultant shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Consultant, its agents, representatives, or employees.

MINIMUM SCOPE AND LIMIT OF INSURANCE

Coverage shall be at least as broad as:

1. Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on an “occurrence” basis, incl uding products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $2,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.

2. Automobile Liability: Insurance Services Office Form Number CA 0001 covering, Code 1 (any auto), or if Consultant has no owned autos, Code 8 (hired) and 9 (non-owned), with limit no less than $1,000,000 per accident for bodily injury and property damage.

3. Workers’ Compensation insurance as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limit of no less than $1,000,000 per accident for bodily injury or disease. (Not required if consultant provides written verification it has no employees)

4. Professional Liability (Errors and Omissions) Insurance appropriates to the Consultant’s profession, with limit no less than $2,000,000 per occurrence or claim, $2,000,000 aggregate.

5. Cyber: Vendor/Consultant shall procure and maintain for the duration of the contract insurance against claims for security breaches, system failures, injuries to persons, damages to software, or damages to property (including computer equipment) which may arise from or in connection with the performance of the work hereunder by the Vendor, its agents, representatives, or employees. Vendor shall procure and maintain for the duration of the contract insurance claims arising out of their services and including, but not limited to loss, damage, theft or other misuse of data, infringement of intellectual property, invasion of privacy and breach of data.

Cyber Liability Insurance, with limits not less than $2,000,000 per occurrence or claim, $2,000,000 aggregate. Coverage shall be sufficiently broad to respond to the duties and obligations as is undertaken by Vendor in this agreement and shall include, but not be limited to, claims involving security breach, system failure, data recovery, business interruption, cyber ex tortion, social engineering, infringement of intellectual property, 170

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including but not limited to infringement of copyright, trademark, trade dress, invasion of privacy violations, information theft, damage to or destruction of electronic information, release of private information, and alteration of electronic information. The policy shall provide coverage for breach response costs, regulatory fines and penalties as well as credit monitoring expenses.

6. Technology Professional Liability Errors & Omissions (Only if vendor is providing a technology service (data storage, website designers, etc.,) or product (software providers)
Technology Professional Liability Errors and Omissions Insurance appropriate to the Consultant’s profession and work hereunder, with limits not less than $2,000,000 per occurrence. Coverage shall be sufficiently broad to respond to the duties and obligations as is undertaken by the Vendor in this agreement and shall inc lude, but not be limited to, claims involving security breach, system failure, data recovery, business interruption, cyber extortion, social engineering, infringement of intellectual property, including but not limited to infringement of copyright, trademark, trade dress, invasion of privacy violations, information theft, damage to or destruction of electronic information, release of private information, and alteration of electronic information. The policy shall provide coverage for breach response costs, regulatory fines and penalties as well as credit monitoring expenses.

a. The Policy shall include, or be endorsed to include, property damage liability coverage for damage to, alteration of, loss of, or destruction of electronic data and/or information “property” of the Agency in the care, custody, or control of the Vendor.

If the Consultant maintains broader coverage and/or higher limits than the minimums shown above, the City requires and shall be entitled to the broader coverage and/or the higher limits maintained by the consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.

Other Insurance Provisions
The insurance policies are to contain, or be endorsed to contain, the following provisions:

Additional Insured Status
The City, its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Consultant including materials, parts, or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the Consultant's insurance (at least as broad as ISO Form CG 20 10 11 85 or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 if a later edition is used).

Primary Coverage
For any claims related to this contract, the Consultant’s insurance coverage shall be primary and non -contributory and at least as broad as ISO CG 20 01 04 13 as respects the City, its officers, officials, employees, and volunteers. Any insurance or self -insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Consultant’s insurance and shall not contribute with it. This requirement shall also apply to any Excess or Umbrella liability policies.
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Umbrella or Excess Policy
The Consultant may use Umbrella or Excess Policies to provide the liability limits as required in this agreement. This form of insurance will be acceptable provided that all of the Primary and Umbrella or Excess Policies shall provide all of the insurance coverages herein required, including, but not limited to, primary and non -contributory, additional insured, Self -Insured Retentions (SIRs), indemnity, and defense requirements. The Umbrella or Excess policies shall be provided on a true “following form” or broader coverage basis, with coverage at least as broad as provided on the underlying Commercial General Liability insurance. No insurance policies maintained by the Additional Insureds, whether primary or excess, and which also apply to a loss covered hereunder, shall be called upon to contribu te to a loss until the C onsultant’s primary and excess liability policies are exhausted.

Notice of Cancellation
Each insurance policy required above shall provide that coverage shall not be canceled, except with notice to the City.

Waiver of Subrogation
Consultant hereby grants to City a waiver of any right to subrogation which any insurer of said Consultant may acquire against the City by virtue of the payment of any loss under such insurance.

Consultant agrees to obtain any endorsement that may be neces sary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.

Self-Insured Retentions
Self-insured retentions must be declared to and approved by the City. The City may require the Consultant to purchase coverage with a lower retention or provide proof of ability to pay losses and related investigations, claim administration, and defense ex penses within the retention. The policy language shall provide, or be endorsed to provide, that the self -insured retention may be satisfied by either the named insured or City. The CGL and any policies, including Excess liability policies, may not be subje ct to a self -insured retention (SIR) or deductible that exceeds $25,000 unless approved in writing by City. Any and all deductibles and SIRs shall be the sole responsibility of Consultant or subcontractor who procured such insurance and shall not apply to the Indemnified Additional Insured Parties. City may deduct from any amounts otherwise due Consultant to fund the SIR/deductible. Policies shall NOT contain any self-insured retention (SIR) provision that limits the satisfaction of the SIR to the Named. Th e policy must also provide that Defense costs, including the Allocated Loss Adjustment Expenses, will satisfy the SIR or deductible. City reserves the right to obtain a copy of any policies and endorsements for verification.

Acceptability of Insurers
Insurance is to be placed with insurers authorized to conduct business in the state with a current A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the City.

Claims Made Policies (note – should be applicable only to professional liability, see below) If any of the required policies provide claims-made coverage:
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1. The Retroactive Date must be shown, and must be before the date of the contract or the beginning of contract work.

2. Insurance must be maintained and evidence of insurance mu st be provided for at least five (5) years after completion of the contract of work.

3. If coverage is canceled or non -renewed, and not replaced with another claims -made policy form with a Retroactive Date prior to the contract effective date, the Consultant must purchase “extended reporting” coverage for a minimum of five (5) years after completion of work.

Verification of Coverage
Consultant shall furnish the City with original certificates and amendatory endorsements or copies of the applicable p olicy language effecting coverage required by this clause and a copy of the Declarations and Endorsements Pages of the CGL and any Excess policies listing all policy endorsements. All certificates and endorsements and copies of the Declarations & Endorsements pages are to be received and approved by the City before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the Con sultant’s obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.

City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.

Subcontractors
Consultant shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein, and Contractor shall ensure that City is an additional insured on insurance required from subcontractors.

Duration of Coverage
CGL & Excess liability policies for any construction related work, including, but not limited to, maintenance, service, or repair work, shall continue coverage for a minimum of 5 years for Completed Operations liability coverage. Such Insurance must be maintained , and evidence of insurance must be provided for at least five (5) years after completion of the contract of work.

Special Risks or Circumstances
City reserves the right to modify th ese requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.

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For City Clerk Use Only

Contract No._________

AGREEMENT FOR ON-CALL PROFESSIONAL SERVICES
WITH THE CITY OF MURRIETA (“CITY”)
Project Name/Description (“Project”): Traffic Count Services Consultant Name (“Consultant”): National Data & Surveying Services, Inc.

Consultant Business Type: Corporation
Consultant Address: 106 N Poinsettia Pl, Los Angeles, CA 90036 Consultant Representative Name and Title (“ Consultant Representative”): Abraham Tashman, President
Consultant Representative Work Phone: (323) 782-0090
Consultant Representative Email: [email protected] Termination Date: June 30, 2028
Total Not-To-Exceed Contract Amount (“Contract Sum”): $100,000.00 City Department Contact (“Department Contact”): Jeff Hitch Department Contact Work Phone: (951) 461-6076
Department Contact Email: [email protected]
Is Federal Funding Being Used to Fund Any Part of The Project (Yes/No): No

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RECITALS
The City desires to contract with a Consultant to provide professional services on an on- call basis as more further set forth herein.

The City circulated a Request for Quotes or Proposals for the above-described professional services.

Consultant submit ted a proposal to City to provide the above -described professional services.

City Staff has reviewed all the proposals and after considering the demonstrated competence of Consultant, the professional qualifications of Consultant, and the fairness and reasonableness of Consultant’s proposed cost, staff has determined that an agreement to provide the required services should be awarded to Consultant.

The Consultant shall perform the following traffic count services on a typical weekday (Tuesday, Wednesday, or Thursday) when area schools are in session:

1. Conduct 24-hour machine (tube) counts for traffic volume, providing data to the City for each direction and combined directions.

2. Conduct 24-hour machine (tube) counts for traffic volume and speed, providing data to the City for each direction and combined directions.

3. Conduct 24 -hour machine (tube) counts for traffic volume, speed, and vehicle classification, providing data to the City for each direction and combined directions.

4. Conduct tur ning movement counts from 7:00 a.m. to 9:00 a.m. and 4:00 p.m. to 6:00 p.m., including passenger vehicles, trucks, pedestrians, and bicyclists, with separate printouts for each category provided to the City.

5. Conduct turning movement counts from 6:00 a. m. to 9:00 a.m., 11:00 a.m. to 1:00 p.m., and 2:00 p.m. to 6:00 p.m. near school zones, to include passenger vehicles, trucks, pedestrians, and bicyclists, with separate printouts for each category provided to the City.

6. Conduct radar surveys for speed ordinance updates per the California Manual on Uniform Traffic Control Devices (MUTCD), providing the City with a summary of surveyed speeds (e.g., 85th percentile speed) for each direction and combined directions.

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AGREEMENT FOR PROFESSIONAL SERVICES
WITH THE CITY OF MURRIETA (“CITY”)

THIS AGREEMENT FOR SERVICES (“Agreement”) is made and entered into as of the effective on the date executed by the City by and between CITY OF MURRIETA, a California municipal corporation (“ City”) and (“ Consultant”). Cit y and Consultant may be referred to individually as “Party” or collectively as “Parties.” In consideration of the mutual promises and covenants made by the Parties and contained herein and other consideration, the value and adequacy of which are hereby acknowledged, the Parties agree as follows:

ARTICLE 1. SERVICES OF CONSULTANT

1.1 Scope of Services. In compliance with all terms and conditions of this Agreement, Consultant shall provide those services specified in the “ Scope of Services ” attached hereto as Exhibit “A” and incorporated herein by this reference, which may be referred to herein as the “ services” or “ work” hereunder. As a material inducement to City entering into this Agreement, Consultant represents and warrants: a) it has the qualifications, experience, and facilities necessary to properly perform the Services required under this Agreement b) all services set forth in the Scope of Services will be performed in a competent and satisfactory manner; c) all materials used for services will be both of good quality as well as fit for the purpose intended; and, d) Consultant shall follow the highest professional standards and practices in performing the services required hereunder. Individual tasks under the Scope of Services shall be established on a per project basis. Upon request by City, the Consultant shall provide a detailed task proposal including pricing consistent with those hourl y rates as provided in Article II, below. Consultant shall not commence work until an Task Order is issued by the City authorizing the Consultant to perform such work.

1.2 Consultant’s Proposal. The Scope of Services shall include the scope of services or work included in Consultant’s proposal or bid , which shall be incorporated herein by this reference as though fully set forth herein. In the event of any inconsistency between the terms of such proposal or bid, and this Agreement, the terms of this Agreement s hall govern. No other terms and conditions from Consultant’s proposal or bid, other than description of scope of services or work, shall apply to this Agreement, unless specifically agreed to by City in writing.

1.3 Compliance with Law. All services rendered hereunder shall be provided in accordance with all ordinances, resolutions, statutes, rules and regulations of City and any federal, State or local governmental agency having jurisdiction in effect at the time services are rendered. City, and its officers, employees and agents, shall not be liable at law or in equity for failure of Consultant to comply with this Section.

1.4 Licenses, Permits, Fees and Assessments. Consultant shall obtain at its sole cost and expense such licenses, permits and approvals as may be required by law for the performance of the services required by this Agreement. Consultant shall have the sole obligation to pay for any fees, assessments and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or a re necessary for 176

Consultant’s performance of the services required by this Agreement, and shall indemnify, defend and hold harmless City against any such fees, assessments, taxes, penalties or interest levied, assessed or imposed against City hereunder.

1.5 Familiarity with Work. By executing this Agreement, Consultant represents and warrants Consultant: a) has thoroughly investigated and considered services to be performed, b) has carefully considered how services should be performed, and c) fully understands the facilities, difficulties and restrictions attending performance of services under this Agreement.

1.6 Software and Computer Services. If the Scope of Services includes the provision and/or installation of any software, computer system, or other computer technology, Consultant represents and warrants that it is familiar with and/or has inspected City’s current infrastructure, equipment, computer system and software and that the software, computer system, or other computer technology provided and/or installed by Consultant under this Agreement is compatible, and shall be fully functional, with such infrastructure, equipment, computer system and software of City. Consultant acknowledges that City is relying on this representation by Consultant as a material c onsideration in entering into this Agreement.

1.7 Prevailing Wages. If services include any “public work” or “maintenance work,” as those terms are defined in California Labor Code section 1720 et seq. and California Code of Regulations, Title 8, section 16000 et seq. , and if the total compensation is $1,000 or more, Consultant shall pay prevailing wages for such work and comply with the requirements in California Labor Code section 1770 et seq. and 1810 et seq., and all other applicable laws.

1.8 Contract Modifica tions. Additional terms and conditions of this Agreement, if any, or any modifications or revisions to the standard terms and conditions herein are made a part hereof as set forth in the “Contract Modifications” attached hereto as Exhibit “B” and incorporated herein by this reference. In the event of a conflict between the provisions of Exhibit B and any other provisions of this Agreement, the provisions of Exhibit B shall govern.

ARTICLE 2. COMPENSATION AND METHOD OF PAYMENT

2.1 Contract Sum. Subject to any limitations set forth in this Agreement, City agrees to pay Consultant the fixed prices and/or hourly rates specified in the “Schedule of Compensation” attached hereto as Exhibit “C” and incorporated herein by this reference. The total compensation for all work, including reimbursement for actual expenses, shall not exceed the Contract Sum set forth above . Compensation may include reimbursement, for actual and necessary expenditures, if both are specified in the Schedule of Compensation or upon a Task Orde r, and approved by City in advance.

2.2 Invoices. Unless some other method of payment is specified in Exhibit C, Schedule of Compensation, in any month in which Consultant wishes to receive payment, no 177

later than the first business day of such month, Consultant shall submit to City, in a form approved by City’s Finance Director, an invoice for services rendered prior to the date of the invoice. By submitting an invoice for payment under this Agreement, Consultant is certifying compl iance with all provisions of this Agreement. Except as provided in Section s 7.3, 7.4 and 7.5, City shall pay Consultant for all expenses stated thereon which are approved by City pursuant to this Agreement generally within thirty (30) days, and City will use its best efforts to make payment no later than forty -five (45) days, from the submission of an invoice in an approved form. In the event any charges or expenses are disputed by City, the original invoice shall be returned by City to Consultant for correction and resubmission. Review and payment by City for any invoice provided by Consultant shall not constitute a waiver of any rights or remedies provided herein or any applicable law. Each invoice is to include (unless otherwise specified by City) : 1) line items for all personnel describing the work performed, the number of hours worked, and the hourly rate; 2) line items for all materials and equipment properly charged to the Services; 3) line items for all other approved reimbursable expenses claimed, wi th supporting documentation ; and 4) l ine items for all approved subcontractor labor, supplies, equipment, materials, and travel properly charged to the Services.

ARTICLE 3. PERFORMANCE SCHEDULE

3.0 Time of Essence. Time is of the essence in the performance of this Agreement.

3.1 Term. The Agreement shall commence and become effective on the date executed by the City and will continue until the Termination Date. This Agreement may be extended for up to two, additional one -year periods upon the mutual agreement in writing of both parties.

Unless earlier terminated in accordance with Article 7 of this Agreement, this Agreement shall continue in full force and effect until completion of any ongoing services, which shall be no later than the Termination Date set forth above.

Notwithstanding the foregoing, the Indemnification and Insurance provisions set forth in Article 5 shall survive the termination of this Agreement.

3.2 Schedule of Performance. Consultant shall commence the services pursuant to this Agreement upon receipt of a written Task Order and shall perform all services within the time period(s) established in the Task Order or generally within the time periods established in the Exhibit A.

3.3 Force Majeure. The time period(s) specified in Exhibit A for performance of the services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of Consultant, including, but not restricted to, acts of God or of the public enemy, unusual ly severe weather, fires, earthquakes, floods, epidemics, quarantine restrictions, riots, strikes, freight embargoes, wars, litigation, and/or acts of any governmental agency, including City, if Consultant shall within ten (10) days of the commencement of such delay notify City in writing of the causes of the delay. 178

City shall ascertain the facts and the extent of delay, and extend the time for performing the services for the period of the enforced delay wh en and if in the judgment of City such delay is justified. City’s determination shall be final and conclusive upon the Parties to this Agreement. In no event shall Consultant be entitled to recover damages against City for any delay in the performance of t his Agreement, however caused, Consultant’s sole remedy being extension of this Agreement pursuant to this Section.

ARTICLE 4. COORDINATION OF WORK

4.1 Representative of Consultant. The Consultant Representative is authorized to act on Consultant’s behalf with respect to the work or services specified herein and to make all decisions in connection therewith. It is expressly understood that the experience, knowledge, capability and reputation of the representative was a substantial inducement for City to enter into this Ag reement. Therefore, the representative shall be responsible during the term of this Agreement for directing all activities of Consultant and devoting sufficient time to personally supervise the services hereunder. For purposes of this Agreement, the representative may not be replaced nor may their responsibilities be substantially reduced by Consultant without the express written approval of City.

4.2 Department Contact for City . The Department Contact (or other person designated by the City Manager) shall be the primary person on behalf of City responsible for the administration of the Agreement. It shall be Consultant’s responsibility to assure that the Department Contact is kept informed of both the progress of the performance of the services as well as any decisions which must be made by City.

4.3 Approvals from City. City approvals or actions, pursuant to the authority of this Agreement, are to be made (unless otherwise specified) either by the Department Contact, City Manager or by their delegate as provided for in writing.

4.4 Independent Co ntractor. Neither City , nor any of its officers, employees or agents, shall have any control over the manner or means by which Consultant , or its officers, employees, agents or subcontractors , perform the services required herein, except as otherwise set forth herein. Consultant shall perform all services required herein as an independent contractor of City and shall remain under only such obligations as are consistent with that role. Consultant shall not at any time or in any manner represent that it, or any of its officers, employees, agents or subcontractors, are officers, employees or agents of City. City shall not in any way or for any purpose become or be deemed to be a partner of Consultant in its business or otherwise or a joint venturer or a member of any joint enterprise with Consultant.

Consultant shall not incur or have the power to incur any debt, obligation or liability whatever against City, or bind City in any manner. Consultant represents and warrants that the personnel used to provide services to City pursuant to this Agreement shall at all times be under Consultant’s exclusive control and direction.

No City employee benefits shall be available to Consultant, its officers, employees, agents or subcontractors, in connection with the performance of this Agreement. 179

City shall not be liable for compensation or indemnification to Consultant , its officers, employees, agents or subcontractors, for injury or sickness arising out of performing services hereunder. In the event that Consultant or any officer, employee, agent, or subcontractor of Consultant providing services under this Agreement claims or is determined by a federal or state agency, a court of competent jurisdiction, or the California Public Employees’ Retirement System, to be classified as other than an independent contractor for City, then Consultant shall indemnify, defend, and hold harmless City for the payment of any and all assessed fines, penalties, judgments, employee and/or employer contributions, and any other damages and costs assessed to City as a consequence of, or in any way attributable to, the assertion that Consultant , or any officer, employee, agent, or subcontractor Consultant used to provide services under this Agreement, is/are employees of City.

4.5 Subcontracting or Assignment. The experience, knowledge, capability and reputation of Consultant, its principals and employees were a substantial inducement for City to enter into this Agreement. Therefore, without express written approval of City, Consultant shall not contract with any other City to perform in whole or in part services required hereunder without express written approval of City , and n either this Agreement nor any interest herein may be transferred or assigned. No approved transfer shall release Consultant, or any surety or insured of Consultant, of any liability hereunder without express written consent of City.

ARTICLE 5. INSURANCE AND INDEMNIFICATION

5.1 Insurance Coverages. Prior to commencement of any services under this Agreement, and without limiting Consultant’s indemnification obligation to City, Consultant shall procure and maintain, at its sole cost and expense, in a form and content satisfactory to City, for the duration of the Agreement, primary policies of insurance of the type and amounts set forth in the “Insurance Requirements” attached hereto as Exhibit “D” and incorporated herein by this reference.

5.2 Indemnification.
(a) General Obligations. Except as set forth for Design Professionals below, Consultant agrees, to the full extent permitted by law, to indemnify, defend and hold harmless City and its elected and appointed officers, employees and agents (each an “Indemnitee” and collectively, “Indemnitees”) against, and will hold and save them and each of them harmless from, whether actual or threatened, any and all actions, either judicial, administrative, arbitration or regulatory claims, damages to persons or property, losses, costs, penalties, obligations, errors, omissions or liabilities (herein “Claims or Liabilities”) that may be asserted or claimed by any person, firm or City arising out of or in connection with the negligent performance of the work, operations or activities provided herein of Consultant, its officers, employees, agents, subcontractors, or invitees, or any individual or City for which Consultant is legally liable (each an “ Indemnitor” and collectively, “Indemnitors”), or arising from Indemnitors’ reckless or willful miscondu ct, or arising from Indemnitors’ negligent performance of or failure to perform any term, 180

provision, covenant or condition of this Agreement, and in connection therewith:
1) Consultant will defend any action or actions filed or threatened in connection with any such Claims or Liabilities, or at option of Indemnitee(s) will reimburse and pay for all costs and expenses, including legal costs and attorneys’ fees, incurred by Indemnitee(s) in connection therewith; and, 2) Consultant will promptly pay any judgment rendered against Indemnitee(s) for any such Claims or Liabilities, and will save and hold Indemnitee(s) harmless therefrom. (b) Further Provisions. The indemnity obligation herein shall be binding on successors, assigns and heirs of Consultant and shall sur vive termination of this Agreement. Consultant shall incorporate similar indemnity agreements as provided herein with its subcontractors, and if Consultant fails to do so Consultant shall be fully responsible to indemnify City hereunder therefor. Failure of City and/or City Parties (collectively “City” for solely this Section 5. 2(b)) to monitor compliance with any of the indemnification provisions herein shall not be a waiver hereof. The indemnification provisions herein do not apply to claims or liabilities occurring as a result of City’s sole negligence or willful misconduct, but, to the fullest extent permitted by law, shall apply to claims and liabilities resulting in part from City’s negligence, except that design professionals’ indemnity hereunder shall be limited to claims and liabilities arising out of the negligence, recklessness or willful misconduct of the design professional. The indemnification provided herein includes Claims or Liabilities arising from any negligent or wrongful act, error or omission, or reckless or willful misconduct of Indemnitors in the performance of professional services hereunder. Payment of invoices by City is not a condition precedent to enforcement of the indemnity obligation herein. In the event of any dispute between C onsultant and City, as to whether liability arises from the sole negligence or willful misconduct of City, Consultant will be obligated to pay for City’s defense until such time as a final judgment has been entered adjudicating City as solely negligent or responsible for willful misconduct. Consultant will not be entitled in the absence of such a determination to any reimbursement of defense costs including but not limited to attorney’s fees, expert fees and costs of litigation. (c) Pursuant to the full languag e of California Civil Code §2782, and only if Consultant qualifies as a D esign Professional , Consultant agrees to indemnify, including the cost to defend, City and its officers, officials, employees, and volunteers from and against any and all claims, dema nds, costs, or liability that arise out of, or pertain to, or relate to the negligence, recklessness, or willful misconduct of Consultant and its employees or agents in the performance of services under this contract, but this indemnity does not apply to l iability for damages arising from the sole negligence, active negligence, or willful acts of the City; and does not apply to any passive negligence of the City unless caused at least in part by the Consultant. The City agrees that in no event shall the cos t to defend charged to the Consultant exceed Consultant’s proportionate percentage of fault.

This duty to indemnify shall not be waived or modified by contractual agreement or acts of the parties.

5.3 Professional Liability. When the law establishes a professi onal standard of care for Consultant’s services, to the fullest extent permitted by law, Consultant shall 181

indemnify, defend and hold harmless Indemnitees against, and will hold and save them and each of them harmless from, whether actual or threatened, any and all Claims and Liabilities, consistent with all obligations provided for in this Section

5.3, to the extent same are caused in whole or in part by any negligent or wrongful act, error or omission, or reckless or willful misconduct of Indemnitors in th e performance of professional services under this Agreement.

ARTICLE 6. RECORDS, REPORTS AND RELEASE OF INFORMATION

6.1 Records. Consultant shall keep, and require subcontractors to keep, such ledgers, books of accounts, invoices, vouchers, canceled checks, reports, studies or other documents relating to the disbursements charged to City and services performed hereunder (“books and records ”) as shall be necessary to perform the services required by this Agreement and enable City to evaluate the performance of such services. Any and all such books and records shall be maintained in accordance with generally accepted accounting principles, shall be complete and detailed, and shall be readily accessible . City shall have full and free access to such books and records at al l times during normal business hours of City, including the right to inspect, copy, audit and make records and transcripts. Such books and records shall be maintained for a period of three (3) years following completion of the services hereunder. City shall have access to such books and records in the event any audit is required. Consultant shall fully cooperate with City in providing access to any and all Consultant records and documents if a public records request is made and disclosure is required by law including but not limited to the California Public Records Act.

6.2 Ownership of Documents. All drawings, specifications, maps, designs, photographs, studies, surveys, data, notes, computer files, reports, records, documents and other materials (“ documents and materials ”) prepared by Consultant, its officers, employees, agents and subcontractors in the performance of this Agreement shall be the property of City and shall be delivered to City upon request of City and/or upon the termination of this Agreement, and Consultant shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership , use, reuse, or assignment of the documents and materials hereunder. Consultant may retain copies of s uch documents and materials for its own use. Consultant shall have the right to use the concepts embodied therein. All subcontractors shall provide for assignment to City of any documents and materials prepared by them, and in the event Consultant fails to secure such assignment, Consultant shall indemnify City for all damages resulting therefrom. Moreover, with respect to any Consultant documents and materials that may qualify as “works made for hire” as defined in 17 U.S.C. § 101, such documents and materials are hereby deemed “works made for hire” for City.

6.3 Confidentiality and Release of Information. All information gained or work product produced by Consultant in its performance of this Agreement shall be considered confidential, unless such information is in the public domain or already known to Consultant. Consultant shall not release or disclose any such information or work product to persons or entities other than City without prior written 182

authorization from City. Consultant, its officers, employees , agents or subcontractors, shall not, without prior written authorization from City or unless requested by the City Attorney, voluntarily provide documents, declarations, letters of support, testimony at depositions, response to interrogatories or other information concerning the work performed under this Agreement. Response to a subpoena or court order shall not be considered “voluntary” provided Consultant immediately gives City notice of such court order or subpoena. If Consultant, or any officer, emplo yee, agent or subcontractor of Consultant, provides any information or work product in violation of this Agreement, then City shall have the right to reimbursement and indemnity from Consultant for any damages, costs and fees, including attorney’s fees, caused by or incurred as a result of Consultant’s conduct. As concerning, r egarding or related to, in any way, this Agreement and the work performed thereunder: a) Consultant shall immediately notify City should Consultant, its officers, employees, agents or subcontractors be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admiss ions or other discovery request, court order or subpoena from any party ; b) City retains the right, but has no obligation, to represent Consultant or be present at any deposition, hearing or similar proceeding; and, c) Consultant agrees to cooperate fully with City and to provide City with the opportunity to review any response to discovery requests provided by Consultant , however, this right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response.

ARTICLE 7. ENFORCEMENT OF AGREEMENT AND TERMINATION

7.1 California Law. This Agreement shall be interpreted, construed and governed both as to validity and to performance of the Parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Riverside, State of California, or any other appropriate court in such county, and Consultant agrees to submit to the personal jurisdiction of such court in the event of such action. In the event of litigation in a U.S. District Court, venue shall lie exclusively in the Central District of California, in the County of Riverside, State of California.

7.2 Suspension, or Termination, Prior to Expiration of Term. This Section sha ll govern any termination of this Agreement except as specifically provided in Section

7.4 for termination for cause. City reserves the right to terminate or suspend this Agreement, or any portion hereof, at any time, for any reason, with or without cause, upon ten (10) days’ notice to Consultant, except that where termination or suspension is due to the fault of Consultant, the period of notice may be such shorter time as determined by City. Upon receipt of any notice of termination or suspension, Consultant shall immediately cease all services hereunder , unless the notice provides otherwise, or except such as specifically approved by City. Upon submittal of an invoice consistent with Section 2. 2, Consultant shall be entitled to compensation for all service s rendered prior to the effective date of the notice of termination or suspension and for any services authorized by City thereafter in accordance with the Schedule of Compensation, or such a s may be approved by 183

City, except as provided in Section 7.5. In event of termination , or suspension, without cause pursuant to this Section, there is no need to provide opportunity to cure pursuant to Section 7.3.

7.3 Default of Consultant and Opportunity to Cure. In the event that Consultant is in default under the terms of this Agreement, City shall not have any obligation or duty to continue compensating Consultant for any work performed after the date of default. Instead, City may give notice to Consultant of the default and the reasons for the default. The notice shall include the timeframe in which Consultant may cure the default. This timeframe is presumptively t en (10) days, but may be extended, or reduced, if circumstances warrant, as determined by City. During the period of time that Consultant is in default, City shall hold all invoices and shall, when the default is cured, proceed with payment on the invoices , without liability for interest. In the alternative, City may, in its sole discretion, elect to pay some or all of the outstanding invoices during the period of default. If Consultant does not cure the default by conclusion of noticed timeframe , City may immediately both terminate this Agreement with notice to Consultant as well as pursue the remedy in Section 7.4, without prejudice to any other rem edy to which City may be entitled at law, in equity or under this Agreement . Any failure on the part of City to give notice of Consultant’s default shall not be deemed to result in a waiver of City’s legal rights or any rights arising out of any provision of this Agreement.

7.4 Termination for Default of Consultant. If termination is due to the failure of Consultant to fulfill its obligations under this Agreement, City may, after compliance with the provisions of Section 7.3, take over the work and prosecute the same to completion by contract or otherwise, and Consultant shall be liable to the extent that the total cost for completion of the services required hereunder exceeds the compensation herein stipulated (provided that City shall use reasonable efforts to mitigate s uch damages), and City may withhold any payments to Consultant for the purpose of set-off or partial payment of the amounts owed City therefor.

7.5 Retention of Funds. Consultant hereby authorizes City to deduct from any amount payable to Consultant (whether or not arising out of this Agreement) (i) any amounts the payment of which may be in dispute hereunder or which are necessary to compensate City for any losses, costs, liabilities, or damages suffered by City, and (ii) all amounts for which City may be lia ble to third parties, by reason of Consultant’s acts or omissions in performing or failing to perform Consultant’s obligation under this Agreement. In the event that any claim is made by a third party, the amount or validity of which is disputed by Consult ant, or any indebtedness shall exist which shall appear to be the basis for a claim of lien, City may withhold from any payment due, without liability for interest because of such withholding, an amount sufficient to cover such claim. The failure of City t o exercise such right to deduct or to withhold shall not, however, affect the obligations of Consultant to insure, indemnify, and protect City as elsewhere provided herein.

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7.6 Waiver. Waiver by any Party to this Agreement of any term, condition, or covenant of this Agreement shall not constitute a waiver of any other term, condition, or covenant. Waiver by any Party of any breach of the provisions of this Agreement shall not constitute a waiver of any other provision or a waiver of any subsequent breach or violation of any provision of this Agreement. Acceptance by City of any work or services by Consultant shall not constitute a waiver of any of the provisions of this Agreement. No delay or omission in the exercise of any right or remedy by a non -defaulting Party on any default shall impair such right or remedy or be construed as a waiver. Any waiver by either Party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement. Consultant acknowledges and agrees that any actual or alleged failure on the part of City to inform Consultant of non -compliance with any requirement of this Agreement imposes no additional obligations on City nor does it waive any rights hereunder. Payment to Consultant for work performed pursuant to this Agreement shall not be deemed to waive any defects in work performed by Consultant.

7.7 Rights and Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the Parties are cumulative and the exercise by either Party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for t he same default or any other default by the other Party.

7.8 Legal Action. In addition to any other rights or remedies, either Party may take legal action, in law or in equity, to cure, correct or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement. Notwithstanding any contrary provision herein, Consultant shall file a statutory claim pursuant to Government Code sections 905 et seq. and 910 et seq., in order to pursue a legal action under this Agreement.

7.9 Attorneys’ Fees. If either Party to this Agreement is required to initiate or defend or made a party to any action or proceeding in a ny way connected with this Agreement, the prevailing party in such action or proceeding, in addition to any other relief which may be granted, whether legal or equitable, shall be entitled to reasonable attorneys ’ fees. Attorneys’ fees shall include attorn eys’ fees on any appeal, and a Party entitled to attorneys’ fees shall be entitled to all other reasonable costs for investigating such action, consultants’ fees, taking depositions and discovery and all other necessary costs the court allows which are incurred in such 185

litigation. Such fees and costs shall be enforceable whether or not such action is prosecuted to judgment.

ARTICLE 8. INDIVIDUAL LIABILITY, CONFLICTS AND NON-DISCRIMINATION

8.1 Non-liability of City Officers and Employees. No officer or employee of City shall be personally liable to Consultant, or any successor in interest, in the event of any default or breach by City or for any amount which may become due to Consultant or to its successor, or for breach of any obligation of the terms of this Agreement.

8.2 Conflict of Interest. Consultant covenants that neither it, nor any officer or principal of its firm, has or shall acquire any interest, directly or indirectly, which would conflict in any manner with the interests of City or which would in any way hinder Consultant’s performance of services under this Agreement. Consultant further covenants that in the performance of this Agreement, no person having any such interest shall be employed by it as an officer, employee, agent or subcontractor without the express written consent of City. Consultant agrees to at all times avoid conflicts of interest or the appearance of any conflicts of interest with the interests of City in the performance of this Agreement. City, in its sole discretion, shall determine the existence of a conflict of interest and may terminate this Agreement in the event such a conflict of interest exists upon sending Consultant written notice describing the conflict. No officer or employee of City shall have any financial interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to this Agreement which affects their financial interest or the financial interest of any corporation, partnership or association in which they are, directly or indirectly, interested, in violation of any State statute or regulation. Consultant warrants that it has not paid or given and will not pay or give any third party any money or other consideration for obtaining this Agreement.

8.3 Covenant Against Discrimination. Consultant covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, gender, sexual orientation, marital status, national origin, ancestry or other protected class in the performance of this Agreement. Consultant shall take affirmative action to insure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, gender, sexual orientation, marital status, national origin, ancestry or other protected class.

ARTICLE 9. MISCELLANEOUS PROVISIONS

9.1 Notices. Any notice or other communication either Party desires or is required to give to the other Party or any other person in regards to this Agreement must be in writing and may be given either by (i) personal service, (ii) delivery by a reputable document delivery service, such as but not limited to, Federal Express, which provides a receipt showing date and time of delivery, or (iii) mailing in the United States Mail, certified mail, postage prepaid, return receipt requested, in the case of 186

City addressed to City Clerk at City of Murrieta, 1 Town Square, Murrieta California 92562, and in the case of Consultant, to the person(s) at the address designated on the cover page of this Agreement. Either Party may change its address by notifying the other Party of the change of address in writing. Notice shall be deemed communicated at the time personally delivered or in seventy -two (72) hours from the time of mailing if mailed as provided in this Section.

9.2 Interpretation. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either Party by reason of the authorship of this Agreement , headings used, or any other rule of construction which might otherwise apply.

9.3 Counterparts. This Agreement may be executed i n counterparts, each of which shall be deemed an original, and such counterparts shall constitute one and the same instrument.

9.4 Integration; Amendment. This Agreement including the attachments hereto is the entire, complete and exclusive expression of the understanding of the Parties as to the Agreement . It is understood that there are no oral agreements between the Parties hereto affecting this Agreement, and this Agreement supersedes and cancels any and all prior and contemporaneous negotiations, arrangements, agreements and understandings, if any, between the Parties, concerning this Agreement, and none shall be used to interpret this Agreement. No amendment to or modification of this Agreement shall be valid unless made in writing and approved by Consultant and by City.

9.5 Severability. Should a portion of this Agreement be declared invalid or unenforceable by a judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the rema ining portions of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the Parties unless the invalid provision is so material that its invalidity deprives either Party of the basic benefit of their barg ain or renders this Agreement meaningless.

9.6 No Undue Influence. Consultant declares and warrants that no undue influence or pressure was used against or in concert with any officer or employee of City in connection with the award, terms or implementation of this Agreement, including any method of coercion, confidential financial arrangement, or financial inducement. No officer or employee of City has or will receive compensation, directly or indirectly, from Consultant, or from any officer, employee or agent of Consultant, in connection with the award of this Agreement or any work to be conducted as a result of this Agreement. Violation of this Section shall be a material breach of this Agreement entitling City to remedies in Section 7.4 and any and all remedies at law or equity.

9.7 Corporate Authority. The persons executing this Agreement on behalf of the Parties hereto warrant that (i) such Party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of sai d Party, 187

(iii) by so executing this Agreement, such Party is formally bound to the provisions of this Agreement, and (iv) entering into this Agreement does not violate any provision of any other agreement to which said Party is bound. This Agreement shall be binding upon the heirs, executors, administrators, successors and assigns of the Parties.

9.8 Federal Funding. If federal funding is being utilized to fund any part of the Project, as indicated on the Cover Page of this Agreement, the terms of Exhibit “E” are hereby incorporated herein by this reference. If no federal funding is being utilized, Exhibit F may be omitted.

[SIGNATURES ON FOLLOWING PAGE]
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IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the date and year first-above written.

CITY OF MURRIETA ATTEST:

By:_____________________________ By:_____________________________ Justin Clifton, City Manager Cristal McDonald, City Clerk Date: ___________________________ Date: ___________________________

APPROVED AS TO FORM

ALESHIRE & WYNDER, LLP
By: ____________________________
Tiffany Israel, City Attorney

CONSULTANT:

By:_____________________________ By:_____________________________ Name: Abraham Tashman Name: Michael Blitz
Title: President Title: Treasurer
Date: ___________________________ Date: ___________________________

Two corporate officer signatures required when Contractor is a corporation, with one signature required from each of the following groups: 1) Chair person of the Board, President or any Vice President; and 2) Secretary, any Assistant Secretary, Chief Financial Officer or any Assistant Treasurer. (Cal. Corp. Code § 313.) Appropriate attestations shall be included as may be required by the bylaws, articles of incorporation or other rules or regulations applicable to Contractor’s business City. 189

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EXHIBIT "A"

SCOPE OF SERVICES
I. Consultant will perform the following Services on an on-call basis:

Traffic count services on a typical weekda y (Tuesday, Wednesday, or Thursday) when area schools are in session:

1. Conduct 24-hour machine (tube) counts for traffic volume, providing data to the City for each direction and combined directions.

2. Conduct 24-hour machine (tube) counts for traffic volume and speed, providing data to the City for each direction and combined directions.

3. Conduct 24-hour machine (tube) counts for traffic volume, speed, and vehicle classification, providing data to the City for each direction and combined directions.

4. Conduct turning movement counts from 7:00 a.m. to 9:00 a.m. and 4:00 p.m. to 6:00 p.m., including passenger vehicles, trucks, pedestrians, and bicyclists, with separate printouts for each category provided to the City.

5. Conduct turning movement counts from 6:00 a.m. to 9:00 a.m., 11:00 a.m. to 1:00 p.m., and 2:00 p.m. to 6:00 p.m. near school zones, to include passenger vehicles, trucks, pedestrians, and bicyclists, with separate printouts for each category provided to the City.

6. Conduct radar surveys for speed ordinance updates per the California Manual on Uniform Traffic Control Devices (MUTCD), providing the City with a summary of surveyed speeds (e.g., 85th percentile speed) for each direction and combined directions.

II. Consultant must perform all on -call Services in compliance with the following requirements:

A. Each task shall be indicated by a written re quest (“ Task Order”) produced by the Department Contact with a description of the work to be performed, and the time desired for completion. All tasks shall be carried out in conformity with all provisions of this Agreement.

B. Consultant must prepare a written description of the requested tasks including all components and subtasks; the costs to perform the task (“Task Budget”), using the itemized fees in Exhibit C, Schedule of Compensation, whenever a requested task is provided for in Exhibit C; explain how the cost was determined; and, a schedule for 190

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completion of the task (“Task Completion Date”); which shall all collectively be referred to as the “Task Proposal”.

C. Department Contact shall in writing approve, modify or reject t he Task Proposal, and may issue a Task Order.

D. The task shall be performed at a cost not to exceeding the Task Budget.

E. Consultant shall complete the task and deliver all deliverables to Department Contact by the Task Completion Date.

III. All work product is subject to review and acceptance by the City, and must be revised by the Consultant without additional charge to the City until found satisfactory and accepted by City.

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EXHIBIT "B"

CONTRACT MODIFICATIONS
(Superseding Contract Boilerplate)

Article 3, Section 3.1 of the Agreement is hereby replaced in its entirety to read as follows:

3.1 Term. The Agreement shall commence and become effective on the date executed b y the City and will continue until the Termination Date of June 30, 2028. This Agreement may be extended for up to three additional one -year periods based on satisfactory performance of the services called for in the Agreement, at the discretion of the City Manager with at least thirty (30) days written notice prior to the exp iration of the initial term or any subsequent annual renewal.

Unless earlier terminated in accordance with Article 7 of this Agreement, this Agreement shall continue in full force and effect until completion of any ongoing services, which shall be no lat er than the Termination Date forth above. Notwithstanding the foregoing, the Indemnification and Insurance provisions set forth in Article 5 shall survive the termination of the Agreement.

Exhibit D, Section 6 of the Agreement is hereby replaced in its entirety to read as follows:

6. Technology Professional Liability Errors & Omissions is not required. 192

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EXHIBIT “C”

SCHEDULE OF COMPENSATION

I. Consultant shall establish a Task Budget for each Task identifying the subtasks, based on the time and rates of the personnel performing the subtasks, and itemizing all materials and equipment utilized and the costs thereof. If payment is to be made other than at completion of the services, then the phases of the performance and percentage of payment due shall also be shown in the Task Proposal.

II. The total compensation for all Services, including any and all expenses, during the entire term of this Agreeme nt shall not exceed the Contract Sum as provided in the Cover Page of this Agreement.

III. Consultant’s billing rates for any hourly Services are attached as Exhibit C-1.

In connection with the services provided pursuant to the terms of this Agreement, City will pay Consultant upon City’s receipt of a written invoice provided by Consultant no more than monthly. City will pay Consultant for work completed, billed in increments of six minutes (0.1 hours), not to exceed the Contract Sum. The City will reimburse the Consultant for reasonable out -of-pocket expenses related to performing services on behalf of the Client that are approved in advance in writing by the City such as mileage, copies, binding costs, postage, parking, travel, and lodging expenses as part of the not to exceed Contract Sum. To receive reimbursements, the Consultant must provide the City with a receipt and a description of the expense incurred along with the invoice.

No mark up on expenses may be added.

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EXHIBIT “D”

INSURANCE REQUIREMENTS

Consultant shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Consultant, its agents, representatives, or employees.

MINIMUM SCOPE AND LIMIT OF INSURANCE

Coverage shall be at least as broad as:

1. Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on an “occurrence” basis, incl uding products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $2,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.

2. Automobile Liability: Insurance Services Office Form Number CA 0001 covering, Code 1 (any auto), or if Consultant has no owned autos, Code 8 (hired) and 9 (non-owned), with limit no less than $1,000,000 per accident for bodily injury and property damage.

3. Workers’ Compensation insurance as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limit of no less than $1,000,000 per accident for bodily injury or disease. (Not required if consultant provides written verification it has no employees)

4. Professional Liability (Errors and Omissions) Insurance appropriates to the Consultant’s profession, with limit no less than $2,000,000 per occurrence or claim, $2,000,000 aggregate.

5. Cyber: Vendor/Consultant shall procure and maintain for the duration of the contract insurance against claims for security breaches, system failures, injuries to persons, damages to software, or damages to property (including computer equipment) which may arise from or in connection with the performance of the work hereunder by the Vendor, its agents, representatives, or employees. Vendor shall procure and maintain for the duration of the contract insurance claims arising out of their services and including, but not limited to loss, damage, theft or other misuse of data, infringement of intellectual property, invasion of privacy and breach of data.

Cyber Liability Insurance, with limits not less than $2,000,000 per occurrence or claim, $2,000,000 aggregate. Coverage shall be sufficiently broad to respond to the duties and obligations as is undertaken by Vendor in this agreement and shall include, but not be limited to, claims involving security breach, system failure, data recovery, business interruption, cyber ex tortion, social engineering, infringement of intellectual property, 194

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including but not limited to infringement of copyright, trademark, trade dress, invasion of privacy violations, information theft, damage to or destruction of electronic information, release of private information, and alteration of electronic information. The policy shall provide coverage for breach response costs, regulatory fines and penalties as well as credit monitoring expenses.

6. Technology Professional Liability Errors & Omissions (Only if vendor is providing a technology service (data storage, website designers, etc.,) or product (software providers)
Technology Professional Liability Errors and Omissions Insurance appropriate to the Consultant’s profession and work hereunder, with limits not less than $2,000,000 per occurrence. Coverage shall be sufficiently broad to respond to the duties and obligations as is undertaken by the Vendor in this agreement and shall inc lude, but not be limited to, claims involving security breach, system failure, data recovery, business interruption, cyber extortion, social engineering, infringement of intellectual property, including but not limited to infringement of copyright, trademark, trade dress, invasion of privacy violations, information theft, damage to or destruction of electronic information, release of private information, and alteration of electronic information. The policy shall provide coverage for breach response costs, regulatory fines and penalties as well as credit monitoring expenses.

a. The Policy shall include, or be endorsed to include, property damage liability coverage for damage to, alteration of, loss of, or destruction of electronic data and/or information “property” of the Agency in the care, custody, or control of the Vendor.

If the Consultant maintains broader coverage and/or higher limits than the minimums shown above, the City requires and shall be entitled to the broader coverage and/or the higher limits maintained by the consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.

Other Insurance Provisions
The insurance policies are to contain, or be endorsed to contain, the following provisions:

Additional Insured Status
The City, its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Consultant including materials, parts, or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the Consultant's insurance (at least as broad as ISO Form CG 20 10 11 85 or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 if a later edition is used).

Primary Coverage
For any claims related to this contract, the Consultant’s insurance coverage shall be primary and non -contributory and at least as broad as ISO CG 20 01 04 13 as respects the City, its officers, officials, employees, and volunteers. Any insurance or self -insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Consultant’s insurance and shall not contribute with it. This requirement shall also apply to any Excess or Umbrella liability policies.
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Umbrella or Excess Policy
The Consultant may use Umbrella or Excess Policies to provide the liability limits as required in this agreement. This form of insurance will be acceptable provided that all of the Primary and Umbrella or Excess Policies shall provide all of the insurance coverages herein required, including, but not limited to, primary and non -contributory, additional insured, Self -Insured Retentions (SIRs), indemnity, and defense requirements. The Umbrella or Excess policies shall be provided on a true “following form” or broader coverage basis, with coverage at least as broad as provided on the underlying Commercial General Liability insurance. No insurance policies maintained by the Additional Insureds, whether primary or excess, and which also apply to a loss covered hereunder, shall be called upon to contribu te to a loss until the C onsultant’s primary and excess liability policies are exhausted.

Notice of Cancellation
Each insurance policy required above shall provide that coverage shall not be canceled, except with notice to the City.

Waiver of Subrogation
Consultant hereby grants to City a waiver of any right to subrogation which any insurer of said Consultant may acquire against the City by virtue of the payment of any loss under such insurance.

Consultant agrees to obtain any endorsement that may be neces sary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.

Self-Insured Retentions
Self-insured retentions must be declared to and approved by the City. The City may require the Consultant to purchase coverage with a lower retention or provide proof of ability to pay losses and related investigations, claim administration, and defense ex penses within the retention. The policy language shall provide, or be endorsed to provide, that the self -insured retention may be satisfied by either the named insured or City. The CGL and any policies, including Excess liability policies, may not be subje ct to a self -insured retention (SIR) or deductible that exceeds $25,000 unless approved in writing by City. Any and all deductibles and SIRs shall be the sole responsibility of Consultant or subcontractor who procured such insurance and shall not apply to the Indemnified Additional Insured Parties. City may deduct from any amounts otherwise due Consultant to fund the SIR/deductible. Policies shall NOT contain any self-insured retention (SIR) provision that limits the satisfaction of the SIR to the Named. Th e policy must also provide that Defense costs, including the Allocated Loss Adjustment Expenses, will satisfy the SIR or deductible. City reserves the right to obtain a copy of any policies and endorsements for verification.

Acceptability of Insurers
Insurance is to be placed with insurers authorized to conduct business in the state with a current A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the City.

Claims Made Policies (note – should be applicable only to professional liability, see below) If any of the required policies provide claims-made coverage:
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1. The Retroactive Date must be shown, and must be before the date of the contract or the beginning of contract work.

2. Insurance must be maintained and evidence of insurance mu st be provided for at least five (5) years after completion of the contract of work.

3. If coverage is canceled or non -renewed, and not replaced with another claims -made policy form with a Retroactive Date prior to the contract effective date, the Consultant must purchase “extended reporting” coverage for a minimum of five (5) years after completion of work.

Verification of Coverage
Consultant shall furnish the City with original certificates and amendatory endorsements or copies of the applicable p olicy language effecting coverage required by this clause and a copy of the Declarations and Endorsements Pages of the CGL and any Excess policies listing all policy endorsements. All certificates and endorsements and copies of the Declarations & Endorsements pages are to be received and approved by the City before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the Con sultant’s obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.

City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.

Subcontractors
Consultant shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein, and Contractor shall ensure that City is an additional insured on insurance required from subcontractors.

Duration of Coverage
CGL & Excess liability policies for any construction related work, including, but not limited to, maintenance, service, or repair work, shall continue coverage for a minimum of 5 years for Completed Operations liability coverage. Such Insurance must be maintained , and evidence of insurance must be provided for at least five (5) years after completion of the contract of work.

Special Risks or Circumstances
City reserves the right to modify th ese requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.

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For City Clerk Use Only

Contract No._________

AGREEMENT FOR ON-CALL PROFESSIONAL SERVICES
WITH THE CITY OF MURRIETA (“CITY”)
Project Name/Description (“Project”): Traffic Count Services Consultant Name (“Consultant”): Transportation Studies, Inc.

Consultant Business Type: Corporation
Consultant Address: 2640 Walnut Ave, Suite H, Tustin, CA 92780 Consultant Representative Name and Title (“ Consultant Representative ”): Patti Tolton , President
Consultant Representative Work Phone: (714) 508-3612
Consultant Representative Email: [email protected] Termination Date: June 30, 2028
Total Not-To-Exceed Contract Amount (“Contract Sum”): $100,000.00 City Department Contact (“Department Contact”): Jeff Hitch Department Contact Work Phone: (951) 461-6076
Department Contact Email: [email protected]
Is Federal Funding Being Used to Fund Any Part of The Project (Yes/No): No

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RECITALS
The City desires to contract with a Consultant to provide professional services on an on- call basis as more further set forth herein.

The City circulated a Request for Quotes or Proposals for the above-described professional services.

Consultant submit ted a proposal to City to provide the above -described professional services.

City Staff has reviewed all the proposals and after considering the demonstrated competence of Consultant, the professional qualifications of Consultant, and the fairness and reasonableness of Consultant’s proposed cost, staff has determined that an agreement to provide the required services should be awarded to Consultant.

The Consultant shall perform the following traffic count services on a typical weekday (Tuesday, Wednesday, or Thursday) when area schools are in session:

1. Conduct 24-hour machine (tube) counts for traffic volume, providing data to the City for each direction and combined directions.

2. Conduct 24-hour machine (tube) counts for traffic volume and speed, providing data to the City for each direction and combined directions.

3. Conduct 24 -hour machine (tube) counts for traffic volume, speed, and vehicle classification, providing data to the City for each direction and combined directions.

4. Conduct turning movement counts from 7:00 a.m. to 9:00 a.m. and 4:00 p.m. to 6:00 p.m., including passenger vehicles, trucks, pedestrians, and bicyclists, with separate printouts for each category provided to the City.

5. Conduct turning movement counts from 6: 00 a.m. to 9:00 a.m., 11:00 a.m. to 1:00 p.m., and 2:00 p.m. to 6:00 p.m. near school zones, to include passenger vehicles, trucks, pedestrians, and bicyclists, with separate printouts for each category provided to the City.

6. Conduct radar surveys for s peed ordinance updates per the California Manual on Uniform Traffic Control Devices (MUTCD), providing the City with a summary of surveyed speeds (e.g., 85th percentile speed) for each direction and combined directions.

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AGREEMENT FOR PROFESSIONAL SERVICES
WITH THE CITY OF MURRIETA (“CITY”)

THIS AGREEMENT FOR SERVICES (“Agreement”) is made and entered into as of the effective on the date executed by the City by and between CITY OF MURRIETA, a California municipal corporation (“ City”) and (“ Consultant”). City and Consultant may be referred to individually as “Party” or collectively as “Parties.” In consideration of the mutual promises and covenants made by the Parties and contained herein and other consideration, the value and adequacy of which are hereby acknowledged, the Parties agree as follows:

ARTICLE 1. SERVICES OF CONSULTANT

1.1 Scope of Services. In compliance with all terms and conditions of this Agreement, Consultant shall provide those services specified in the “ Scope of Services ” attached hereto as Exhibit “A” and incorporated herein by this reference, which may be referred to herein as the “ services” or “ work” hereunder. As a material inducement to City entering into this Agreement, Consultant represents and warrants: a) it has the qualifications, experience, and facilities necessary to properly perform the Services required under this Agreement b) all services set forth in the Scope of Services will be performed in a competent and satisfactory manner; c) all materials used for services will be both of good quality as well as fit for the purpose intended; and, d) Consultant shall follow the highest professional standards and practices in performing the services required hereunder. Individual tasks under the Scope of Services shall be established on a per project basis. Upon request by City, the Consultant shall provide a detailed task proposal including pricing consistent with those hourly rates as provided in Article II, below. Consultant shall not commence work until an Task Order is issued by the City auth orizing the Consultant to perform such work.

1.2 Consultant’s Proposal. The Scope of Services shall include the scope of services or work included in Consultant’s proposal or bid , which shall be incorporated herein by this reference as though fully set forth herein. In the event of any inconsistency between the terms of such proposal or bid, and this Agreement, the terms of this Agreement shall govern. No other terms and conditions from Consultant’s proposal or bid, other than description of scope of services or work, shall apply to this Agreement, unless specifically agreed to by City in writing.

1.3 Compliance with Law. All services rendered hereunder shall be provided in accordance with all ordinances, resolutions, statutes, rules and regulations of City and any federal, State or local governmental agency having jurisdiction in effect at the time services are rendered. City, and its officers, employees and agents, shall not be liable at law or in equity for failure of Consultant to comply with this Section.

1.4 Licenses, Permits, Fees and Assessments. Consultant shall obtain at its sole cost and expense such licenses, permits and approvals as may be required by law for the performance of the services required by this Agreement. Consultant shall have the sole obligation to pay for any fees, assessments and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for 200

Consultant’s performance of the services required by this Agreement, and shall indemnify, defend and hold harmless City against any such fees, assessments, taxes, penalties or interest levied, assessed or imposed against City hereunder.

1.5 Familiarity with Work. By executing this Agreement, Consultant represents and warrants Consultant: a) has thoroughly investigated and considered services to be performed, b) has carefully considered how services should be performed, and c) fully understands the facilities, difficulties and restrictions attending performance of services under this Agreement.

1.6 Software and Computer Services. If the Scope of Services includes the provision and/or installation of any software, computer system, or other computer technology, Consultant represents a nd warrants that it is familiar with and/or has inspected City’s current infrastructure, equipment, computer system and software and that the software, computer system, or other computer technology provided and/or installed by Consultant under this Agreeme nt is compatible, and shall be fully functional, with such infrastructure, equipment, computer system and software of City. Consultant acknowledges that City is relying on this representation by Consultant as a material consideration in entering into this Agreement.

1.7 Prevailing Wages. If services include any “public work” or “maintenance work,” as those terms are defined in California Labor Code section 1720 et seq. and California Code of Regulations, Title 8, section 16000 et seq. , and if the total compensation is $1,000 or more, Consultant shall pay prevailing wages for such work and comply with the requirements in California Labor Code section 1770 et seq. and 1810 et seq., and all other applicable laws.

1.8 Contract Modifications. Additional terms and conditi ons of this Agreement, if any, or any modifications or revisions to the standard terms and conditions herein are made a part hereof as set forth in the “Contract Modifications” attached hereto as Exhibit “B” and incorporated herein by this reference. In the event of a conflict between the provisions of Exhibit B and any other provisions of this Agreement, the provisions of Exhibit B shall govern.

ARTICLE 2. COMPENSATION AND METHOD OF PAYMENT

2.1 Contract Sum. Subject to any limitations set forth in this Agreement, City agrees to pay Consultant the fixed prices and/or hourly rates specified in the “Schedule of Compensation” attached hereto as Exhibit “C” and incorporated herein by this reference. The total compensation for all work, including reimbursement for actual expenses, shall not exceed the Contract Sum set forth above . Compensation may include reimbursement, for actual and necessary expenditures, if both are specified in the Schedule of Compensation or upon a Task Order , and approved by City in advance.

2.2 Invoices. Unless some other method of payment is specified in Exhibit C, Schedule of Compensation, in any month in which Consultant wishes to receive payment, no 201

later than the first business day of such month, Consultant shall submit to City, in a form approved by City’s Finance Director, an invoice for services rendered prior to the date of the invoice. By submitting an invoice for payment under this Agreement, Consultant is certifying compliance with all provisions of this Agreement. Except as provided in Section s 7.3, 7.4 and 7.5, City shall pay Consultant for all expenses stated thereon which are approved by City pursuant to this Agreement generally within thirty (30) days, and City will use its best efforts to make payment no later than forty -five (45) days, fro m the submission of an invoice in an approved form. In the event any charges or expenses are disputed by City, the original invoice shall be returned by City to Consultant for correction and resubmission. Review and payment by City for any invoice provided by Consultant shall not constitute a waiver of any rights or remedies provided herein or any applicable law. Each invoice is to include (unless otherwise specified by City) : 1) line items for all personnel describing the work performed, the number of hour s worked, and the hourly rate; 2) line items for all materials and equipment properly charged to the Services; 3) line items for all other approved reimbursable expenses claimed, with supporting documentation ; and 4) l ine items for all approved subcontractor labor, supplies, equipment, materials, and travel properly charged to the Services.

ARTICLE 3. PERFORMANCE SCHEDULE

3.0 Time of Essence. Time is of the essence in the performance of this Agreement.

3.1 Term. The Agreement shall commence and become effective on the date executed by the City and will continue until the Termination Date. This Agreement may be extended for up to two, additional one -year periods upon the mutual agreement in writing of both parties.

Unless earlier terminated in accordance with Article 7 of th is Agreement, this Agreement shall continue in full force and effect until completion of any ongoing services, which shall be no later than the Termination Date set forth above.

Notwithstanding the foregoing, the Indemnification and Insurance provisions se t forth in Article 5 shall survive the termination of this Agreement.

3.2 Schedule of Performance. Consultant shall commence the services pursuant to this Agreement upon receipt of a written Task Order and shall perform all services within the time period(s) established in the Task Order or generally within the time periods established in the Exhibit A.

3.3 Force Majeure. The time period(s) specified in Exhibit A for performance of the services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of Consultant, including, but not restricted to, acts of God or of the public enemy, unusually severe weather, fires, earthquakes, floods, epidemics, quarantine restrictions, riots, strikes, freight embargoes, wars, litigation, and/or acts of any governmental agency, including City, if Consultant shall within ten (10) days of the commencement of such delay notify City in writing of the causes of the delay. 202

City shall ascertain the facts and the extent of delay, and extend the time for performing the services for the period of the enforced delay when and if in the judgment of City such delay is justified. City’s determination shall be final and conclusive upon th e Parties to this Agreement. In no event shall Consultant be entitled to recover damages against City for any delay in the performance of this Agreement, however caused, Consultant’s sole remedy being extension of this Agreement pursuant to this Section.

ARTICLE 4. COORDINATION OF WORK

4.1 Representative of Consultant. The Consultant Representative is authorized to act on Consultant’s behalf with respect to the work or services specified herein and to make all decisions in connection therewith. It is expressly understood that the experience, knowledge, capability and reputation of the representative was a substantial inducement for City to enter into this Agreement. Therefore, the representative shall be responsible during the term of this Agreement for directing all activities of Consultant and devoting sufficient time to personally supervise the services hereunder. For purposes of this Agreement, the representative may not be replaced nor may their responsibilities be substantially reduced by Consultant without the express written approval of City.

4.2 Department Contact for City . The Department Contact (or other person designated by the City Manager) shall be the primary person on behalf of City responsible for the administration of the Agreement. It shall be Consultant’s responsibility to assure that the Department Contact is kept informed of both the progress of the performance of the services as well as any decisions which must be made by City.

4.3 Approvals from City. City approvals or actions, pursuant to the authority of this Agreement, are to be made (unless otherwise specified) either by the Department Contact, City Manager or by their delegate as provided for in writing.

4.4 Independent Co ntractor. Neither City , nor any of its officers, employees or agents, shall have any control over the manner or means by which Consultant , or its officers, employees, agents or subcontractors , perform the services required herein, except as otherwise set forth herein. Consultant shall perform all services required herein as an independent contractor of City and shall remain under only such obligations as are consistent with that role. Consultant shall not at any time or in any manner represent that it, or any of its officers, employees, agents or subcontractors, are officers, employees or agents of City. City shall not in any way or for any purpose become or be deemed to be a partner of Consultant in its business or otherwise or a joint venturer or a member of any joint enterprise with Consultant.

Consultant shall not incur or have the power to incur any debt, obligation or liability whatever against City, or bind City in any manner. Consultant represents and warrants that the personnel used to provide services to City pursuant to this Agreement shall at all times be under Consultant’s exclusive control and direction.

No City employee benefits shall be available to Consultant, its officers, employees, agents or subcontractors, in connection with the performance of this Agreement. 203

City shall not be liable for compensation or ind emnification to Consultant , its officers, employees, agents or subcontractors, for injury or sickness arising out of performing services hereunder. In the event that Consultant or any officer, employee, agent, or subcontractor of Consultant providing servi ces under this Agreement claims or is determined by a federal or state agency, a court of competent jurisdiction, or the California Public Employees’ Retirement System, to be classified as other than an independent contractor for City, then Consultant shall indemnify, defend, and hold harmless City for the payment of any and all assessed fines, penalties, judgments, employee and/or employer contributions, and any other damages and costs assessed to City as a consequence of, or in any way attributable to, the assertion that Consultant, or any officer, employee, agent, or subcontractor Consultant used to provide services under this Agreement, is/are employees of City.

4.5 Subcontracting or Assignment. The experience, knowledge, capability and reputation of Consultant, its principals and employees were a substantial inducement for City to enter into this Agreement. Therefore, without express written approval of City, Consultant shall not contract with any other City to perform in whole or in part services req uired hereunder without express written approval of City , and n either this Agreement nor any interest herein may be transferred or assigned. No approved transfer shall release Consultant, or any surety or insured of Consultant, of any liability hereunder without express written consent of City.

ARTICLE 5. INSURANCE AND INDEMNIFICATION

5.1 Insurance Coverages. Prior to commencement of any services under this Agreement, and without limiting Consultant’s indemnification obligation to City, Consultant shall procure and maintain, at its sole cost and expense, in a form and content satisfactory to City, for the duration of the Agreement, primary policies of insurance of the type and amounts set forth in the “Insurance Requirements” attached hereto as Exhibit “D” and incorporated herein by this reference.

5.2 Indemnification.
(a) General Obligations. Except as set forth for Design Professionals below, Consultant agrees, to the full extent permitted by law, to indemnify, defend and hold harmless City and its elected and appointed officers, employees and agents (each an “Indemnitee” and collectively, “Indemnitees”) against, and will hold and save them and each of them harmless from, whether actual or threatened, any and all actions, either judicial, administrative, arbitration or regulatory claims, damages to persons or property, losses, costs, penalties, obligations, errors, omissions or liabilities (herein “Claims or Liabilities”) that may be asserted or claimed by any person, firm or City arising out of or in connection with the negligent performance of the work, operations or activities provided herein of Consultant, its officers, employees, agents, subcontractors, or invitees, or any individual or City for which Consultant is legally liable (each an “ Indemnitor” and collectively, “Indemnitors”), or arising from Indemnitors’ reckless or willful miscondu ct, or arising from Indemnitors’ negligent performance of or failure to perform any term, 204

provision, covenant or condition of this Agreement, and in connection therewith:
1) Consultant will defend any action or actions filed or threatened in connection with any such Claims or Liabilities, or at option of Indemnitee(s) will reimburse and pay for all costs and expenses, including legal costs and attorneys’ fees, incurred by Indemnitee(s) in connection therewith; and, 2) Consultant will promptly pay any judgment rendered against Indemnitee(s) for any such Claims or Liabilities, and will save and hold Indemnitee(s) harmless therefrom. (b) Further Provisions. The indemnity obligation herein shall be binding on successors, assigns and heirs of Consultant and shall sur vive termination of this Agreement. Consultant shall incorporate similar indemnity agreements as provided herein with its subcontractors, and if Consultant fails to do so Consultant shall be fully responsible to indemnify City hereunder therefor. Failure of City and/or City Parties (collectively “City” for solely this Section 5. 2(b)) to monitor compliance with any of the indemnification provisions herein shall not be a waiver hereof. The indemnification provisions herein do not apply to claims or liabilities occurring as a result of City’s sole negligence or willful misconduct, but, to the fullest extent permitted by law, shall apply to claims and liabilities resulting in part from City’s negligence, except that design professionals’ indemnity hereunder shall be limited to claims and liabilities arising out of the negligence, recklessness or willful misconduct of the design professional. The indemnification provided herein includes Claims or Liabilities arising from any negligent or wrongful act, error or omission, or reckless or willful misconduct of Indemnitors in the performance of professional services hereunder. Payment of invoices by City is not a condition precedent to enforcement of the indemnity obligation herein. In the event of any dispute between C onsultant and City, as to whether liability arises from the sole negligence or willful misconduct of City, Consultant will be obligated to pay for City’s defense until such time as a final judgment has been entered adjudicating City as solely negligent or responsible for willful misconduct. Consultant will not be entitled in the absence of such a determination to any reimbursement of defense costs including but not limited to attorney’s fees, expert fees and costs of litigation. (c) Pursuant to the full languag e of California Civil Code §2782, and only if Consultant qualifies as a D esign Professional , Consultant agrees to indemnify, including the cost to defend, City and its officers, officials, employees, and volunteers from and against any and all claims, dema nds, costs, or liability that arise out of, or pertain to, or relate to the negligence, recklessness, or willful misconduct of Consultant and its employees or agents in the performance of services under this contract, but this indemnity does not apply to l iability for damages arising from the sole negligence, active negligence, or willful acts of the City; and does not apply to any passive negligence of the City unless caused at least in part by the Consultant. The City agrees that in no event shall the cos t to defend charged to the Consultant exceed Consultant’s proportionate percentage of fault.

This duty to indemnify shall not be waived or modified by contractual agreement or acts of the parties.

5.3 Professional Liability. When the law establishes a professi onal standard of care for Consultant’s services, to the fullest extent permitted by law, Consultant shall 205

indemnify, defend and hold harmless Indemnitees against, and will hold and save them and each of them harmless from, whether actual or threatened, any and all Claims and Liabilities, consistent with all obligations provided for in this Section

5.3, to the extent same are caused in whole or in part by any negligent or wrongful act, error or omission, or reckless or willful misconduct of Indemnitors in th e performance of professional services under this Agreement.

ARTICLE 6. RECORDS, REPORTS AND RELEASE OF INFORMATION

6.1 Records. Consultant shall keep, and require subcontractors to keep, such ledgers, books of accounts, invoices, vouchers, canceled checks, reports, studies or other documents relating to the disbursements charged to City and services performed hereunder (“books and records ”) as shall be necessary to perform the services required by this Agreement and enable City to evaluate the performance of such services. Any and all such books and records shall be maintained in accordance with generally accepted accounting principles, shall be complete and detailed, and shall be readily accessible . City shall have full and free access to such books and records at al l times during normal business hours of City, including the right to inspect, copy, audit and make records and transcripts. Such books and records shall be maintained for a period of three (3) years following completion of the services hereunder. City shall have access to such books and records in the event any audit is required. Consultant shall fully cooperate with City in providing access to any and all Consultant records and documents if a public records request is made and disclosure is required by law including but not limited to the California Public Records Act.

6.2 Ownership of Documents. All drawings, specifications, maps, designs, photographs, studies, surveys, data, notes, computer files, reports, records, documents and other materials (“ documents and materials ”) prepared by Consultant, its officers, employees, agents and subcontractors in the performance of this Agreement shall be the property of City and shall be delivered to City upon request of City and/or upon the termination of this Agreement, and Consultant shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership , use, reuse, or assignment of the documents and materials hereunder. Consultant may retain copies of s uch documents and materials for its own use. Consultant shall have the right to use the concepts embodied therein. All subcontractors shall provide for assignment to City of any documents and materials prepared by them, and in the event Consultant fails to secure such assignment, Consultant shall indemnify City for all damages resulting therefrom. Moreover, with respect to any Consultant documents and materials that may qualify as “works made for hire” as defined in 17 U.S.C. § 101, such documents and materials are hereby deemed “works made for hire” for City.

6.3 Confidentiality and Release of Information. All information gained or work product produced by Consultant in its performance of this Agreement shall be considered confidential, unless such information is in the public domain or already known to Consultant. Consultant shall not release or disclose any such information or work product to persons or entities other than City without prior written 206

authorization from City. Consultant, its officers, employees , agents or subcontractors, shall not, without prior written authorization from City or unless requested by the City Attorney, voluntarily provide documents, declarations, letters of support, testimony at depositions, response to interrogatories or other information concerning the work performed under this Agreement. Response to a subpoena or court order shall not be considered “voluntary” provided Consultant immediately gives City notice of such court order or subpoena. If Consultant, or any officer, emplo yee, agent or subcontractor of Consultant, provides any information or work product in violation of this Agreement, then City shall have the right to reimbursement and indemnity from Consultant for any damages, costs and fees, including attorney’s fees, caused by or incurred as a result of Consultant’s conduct. As concerning, r egarding or related to, in any way, this Agreement and the work performed thereunder: a) Consultant shall immediately notify City should Consultant, its officers, employees, agents or subcontractors be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admiss ions or other discovery request, court order or subpoena from any party ; b) City retains the right, but has no obligation, to represent Consultant or be present at any deposition, hearing or similar proceeding; and, c) Consultant agrees to cooperate fully with City and to provide City with the opportunity to review any response to discovery requests provided by Consultant , however, this right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response.

ARTICLE 7. ENFORCEMENT OF AGREEMENT AND TERMINATION

7.1 California Law. This Agreement shall be interpreted, construed and governed both as to validity and to performance of the Parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Riverside, State of California, or any other appropriate court in such county, and Consultant agrees to submit to the personal jurisdiction of such court in the event of such action. In the event of litigation in a U.S. District Court, venue shall lie exclusively in the Central District of California, in the County of Riverside, State of California.

7.2 Suspension, or Termination, Prior to Expiration of Term. This Section sha ll govern any termination of this Agreement except as specifically provided in Section

7.4 for termination for cause. City reserves the right to terminate or suspend this Agreement, or any portion hereof, at any time, for any reason, with or without cause, upon ten (10) days’ notice to Consultant, except that where termination or suspension is due to the fault of Consultant, the period of notice may be such shorter time as determined by City. Upon receipt of any notice of termination or suspension, Consultant shall immediately cease all services hereunder , unless the notice provides otherwise, or except such as specifically approved by City. Upon submittal of an invoice consistent with Section 2. 2, Consultant shall be entitled to compensation for all service s rendered prior to the effective date of the notice of termination or suspension and for any services authorized by City thereafter in accordance with the Schedule of Compensation, or such a s may be approved by 207

City, except as provided in Section 7.5. In event of termination , or suspension, without cause pursuant to this Section, there is no need to provide opportunity to cure pursuant to Section 7.3.

7.3 Default of Consultant and Opportunity to Cure. In the event that Consultant is in default under the terms of this Agreement, City shall not have any obligation or duty to continue compensating Consultant for any work performed after the date of default. Instead, City may give notice to Consultant of the default and the reasons for the default. The notice shall include the timeframe in which Consultant may cure the default. This timeframe is presumptively t en (10) days, but may be extended, or reduced, if circumstances warrant, as determined by City. During the period of time that Consultant is in default, City shall hold all invoices and shall, when the default is cured, proceed with payment on the invoices , without liability for interest. In the alternative, City may, in its sole discretion, elect to pay some or all of the outstanding invoices during the period of default. If Consultant does not cure the default by conclusion of noticed timeframe , City may immediately both terminate this Agreement with notice to Consultant as well as pursue the remedy in Section 7.4, without prejudice to any other rem edy to which City may be entitled at law, in equity or under this Agreement . Any failure on the part of City to give notice of Consultant’s default shall not be deemed to result in a waiver of City’s legal rights or any rights arising out of any provision of this Agreement.

7.4 Termination for Default of Consultant. If termination is due to the failure of Consultant to fulfill its obligations under this Agreement, City may, after compliance with the provisions of Section 7.3, take over the work and prosecute the same to completion by contract or otherwise, and Consultant shall be liable to the extent that the total cost for completion of the services required hereunder exceeds the compensation herein stipulated (provided that City shall use reasonable efforts to mitigate s uch damages), and City may withhold any payments to Consultant for the purpose of set-off or partial payment of the amounts owed City therefor.

7.5 Retention of Funds. Consultant hereby authorizes City to deduct from any amount payable to Consultant (whether or not arising out of this Agreement) (i) any amounts the payment of which may be in dispute hereunder or which are necessary to compensate City for any losses, costs, liabilities, or damages suffered by City, and (ii) all amounts for which City may be lia ble to third parties, by reason of Consultant’s acts or omissions in performing or failing to perform Consultant’s obligation under this Agreement. In the event that any claim is made by a third party, the amount or validity of which is disputed by Consult ant, or any indebtedness shall exist which shall appear to be the basis for a claim of lien, City may withhold from any payment due, without liability for interest because of such withholding, an amount sufficient to cover such claim. The failure of City t o exercise such right to deduct or to withhold shall not, however, affect the obligations of Consultant to insure, indemnify, and protect City as elsewhere provided herein.

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7.6 Waiver. Waiver by any Party to this Agreement of any term, condition, or covenant of this Agreement shall not constitute a waiver of any other term, condition, or covenant. Waiver by any Party of any breach of the provisions of this Agreement shall not constitute a waiver of any other provision or a waiver of any subsequent breach or violation of any provision of this Agreement. Acceptance by City of any work or services by Consultant shall not constitute a waiver of any of the provisions of this Agreement. No delay or omission in the exercise of any right or remedy by a non -defaulting Party on any default shall impair such right or remedy or be construed as a waiver. Any waiver by either Party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement. Consultant acknowledges and agrees that any actual or alleged failure on the part of City to inform Consultant of non -compliance with any requirement of this Agreement imposes no additional obligations on City nor does it waive any rights hereunder. Payment to Consultant for work performed pursuant to this Agreement shall not be deemed to waive any defects in work performed by Consultant.

7.7 Rights and Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the Parties are cumulative and the exercise by either Party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for t he same default or any other default by the other Party.

7.8 Legal Action. In addition to any other rights or remedies, either Party may take legal action, in law or in equity, to cure, correct or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement. Notwithstanding any contrary provision herein, Consultant shall file a statutory claim pursuant to Government Code sections 905 et seq. and 910 et seq., in order to pursue a legal action under this Agreement.

7.9 Attorneys’ Fees. If either Party to this Agreement is required to initiate or defend or made a party to any action or proceeding in a ny way connected with this Agreement, the prevailing party in such action or proceeding, in addition to any other relief which may be granted, whether legal or equitable, shall be entitled to reasonable attorneys ’ fees. Attorneys’ fees shall include attorn eys’ fees on any appeal, and a Party entitled to attorneys’ fees shall be entitled to all other reasonable costs for investigating such action, consultants’ fees, taking depositions and discovery and all other necessary costs the court allows which are incurred in such 209

litigation. Such fees and costs shall be enforceable whether or not such action is prosecuted to judgment.

ARTICLE 8. INDIVIDUAL LIABILITY, CONFLICTS AND NON-DISCRIMINATION

8.1 Non-liability of City Officers and Employees. No officer or employee of City shall be personally liable to Consultant, or any successor in interest, in the event of any default or breach by City or for any amount which may become due to Consultant or to its successor, or for breach of any obligation of the terms of this Agreement.

8.2 Conflict of Interest. Consultant covenants that neither it, nor any officer or principal of its firm, has or shall acquire any interest, directly or indirectly, which would conflict in any manner with the interests of City or which would in any way hinder Consultant’s performance of services under this Agreement. Consultant further covenants that in the performance of this Agreement, no person having any such interest shall be employed by it as an officer, employee, agent or subcontractor without the express written consent of City. Consultant agrees to at all times avoid conflicts of interest or the appearance of any conflicts of interest with the interests of City in the performance of this Agreement. City, in its sole discretion, shall determine the existence of a conflict of interest and may terminate this Agreement in the event such a conflict of interest exists upon sending Consultant written notice describing the conflict. No officer or employee of City shall have any financial interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to this Agreement which affects their financial interest or the financial interest of any corporation, partnership or association in which they are, directly or indirectly, interested, in violation of any State statute or regulation. Consultant warrants that it has not paid or given and will not pay or give any third party any money or other consideration for obtaining this Agreement.

8.3 Covenant Against Discrimination. Consultant covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, gender, sexual orientation, marital status, national origin, ancestry or other protected class in the performance of this Agreement. Consultant shall take affirmative action to insure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, gender, sexual orientation, marital status, national origin, ancestry or other protected class.

ARTICLE 9. MISCELLANEOUS PROVISIONS

9.1 Notices. Any notice or other communication either Party desires or is required to give to the other Party or any other person in regards to this Agreement must be in writing and may be given either by (i) personal service, (ii) delivery by a reputable document delivery service, such as but not limited to, Federal Express, which provides a receipt showing date and time of delivery, or (iii) mailing in the United States Mail, certified mail, postage prepaid, return receipt requested, in the case of 210

City addressed to City Clerk at City of Murrieta, 1 Town Square, Murrieta California 92562, and in the case of Consultant, to the person(s) at the address designated on the cover page of this Agreement. Either Party may change its address by notifying the other Party of the change of address in writing. Notice shall be deemed communicated at the time personally delivered or in seventy -two (72) hours from the time of mailing if mailed as provided in this Section.

9.2 Interpretation. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either Party by reason of the authorship of this Agreement , headings used, or any other rule of construction which might otherwise apply.

9.3 Counterparts. This Agreement may be executed i n counterparts, each of which shall be deemed an original, and such counterparts shall constitute one and the same instrument.

9.4 Integration; Amendment. This Agreement including the attachments hereto is the entire, complete and exclusive expression of the understanding of the Parties as to the Agreement . It is understood that there are no oral agreements between the Parties hereto affecting this Agreement, and this Agreement supersedes and cancels any and all prior and contemporaneous negotiations, arrangements, agreements and understandings, if any, between the Parties, concerning this Agreement, and none shall be used to interpret this Agreement. No amendment to or modification of this Agreement shall be valid unless made in writing and approved by Consultant and by City.

9.5 Severability. Should a portion of this Agreement be declared invalid or unenforceable by a judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the rema ining portions of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the Parties unless the invalid provision is so material that its invalidity deprives either Party of the basic benefit of their barg ain or renders this Agreement meaningless.

9.6 No Undue Influence. Consultant declares and warrants that no undue influence or pressure was used against or in concert with any officer or employee of City in connection with the award, terms or implementation of this Agreement, including any method of coercion, confidential financial arrangement, or financial inducement. No officer or employee of City has or will receive compensation, directly or indirectly, from Consultant, or from any officer, employee or agent of Consultant, in connection with the award of this Agreement or any work to be conducted as a result of this Agreement. Violation of this Section shall be a material breach of this Agreement entitling City to remedies in Section 7.4 and any and all remedies at law or equity.

9.7 Corporate Authority. The persons executing this Agreement on behalf of the Parties hereto warrant that (i) such Party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of sai d Party, 211

(iii) by so executing this Agreement, such Party is formally bound to the provisions of this Agreement, and (iv) entering into this Agreement does not violate any provision of any other agreement to which said Party is bound. This Agreement shall be binding upon the heirs, executors, administrators, successors and assigns of the Parties.

9.8 Federal Funding. If federal funding is being utilized to fund any part of the Project, as indicated on the Cover Page of this Agreement, the terms of Exhibit “E” are hereby incorporated herein by this reference. If no federal funding is being utilized, Exhibit F may be omitted.

[SIGNATURES ON FOLLOWING PAGE]
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IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the date and year first-above written.

CITY OF MURRIETA ATTEST:

By:_____________________________ By:_____________________________ Justin Clifton, City Manager Cristal McDonald, City Clerk Date: ___________________________ Date: ___________________________

APPROVED AS TO FORM

ALESHIRE & WYNDER, LLP
By: ____________________________
Tiffany Israel, City Attorney

CONSULTANT:

By:_____________________________ By:_____________________________ Name: Patti Tolton Name: Craig Shick
Title: President Title: Treasurer
Date: ___________________________ Date: ___________________________

Two corporate officer signatures required when Contractor is a corporation, with one signature required from each of the following groups: 1) Chair person of the Board, President or any Vice President; and 2) Secretary, any Assistant Secretary, Chief Financial Officer or any Assistant Treasurer. (Cal. Corp. Code § 313.) Appropriate attestations shall be included as may be required by the bylaws, articles of incorporation or other rules or regulations applicable to Contractor’s business City. 213

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EXHIBIT "A"

SCOPE OF SERVICES
I. Consultant will perform the following Services on an on-call basis:

Traffic count services on a typical weekday (Tuesday, Wednesday, or Thursday) when area schools are in session:

1. Conduct 24-hour machine (tube) counts for traffic volume, providing data to the City for each direction and combined directions.

2. Conduct 24-hour machine (tube) counts for traffic volume and speed, providing data to the City for each direction and combined directions.

3. Conduct 24 -hour machine (tube) counts for traffic volume, speed, and vehicle classification, providing data to the City for each direction and combined directions.

4. Conduct turning movement counts from 7:00 a.m. to 9:00 a.m. and 4:00 p.m. to 6:00 p.m., including passenger vehicles, trucks, pedestrians, and bicyclists, with separate printouts for each category provided to the City.

5. Conduct turning movement counts from 6:00 a.m. to 9:00 a.m., 11:00 a.m. to 1:00 p.m., and 2:00 p.m. to 6:00 p.m. near school zones, to include passenger vehicles, trucks, pedestrians, and bicyclists, with separate printouts for each category provided to the City.

6. Conduct radar surveys for speed ordinance updates per the California Manual on Uniform Traffic Control Devices (MUTCD), providing the City with a summary of surveyed speeds (e.g., 85th percentile speed) for each direction and combined directions.

II. Consultant must perform all on -call Services in compliance with the following requirements:

A. Each task shall be indicated by a written re quest (“ Task Order”) produced by the Department Contact with a description of the work to be performed, and the time desired for completion. All tasks shall be carried out in conformity with all provisions of this Agreement.

B. Consultant must prepare a written description of the requested tasks including all components and subtasks; the costs to perform the task (“Task Budget”), using the itemized fees in Exhibit C, Schedule of Compensation, whenever a requested task is provided for in Exhibit C; explain how the cost was determined; and, a schedule for 214

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completion of the task (“Task Completion Date”); which shall all collectively be referred to as the “Task Proposal”.

C. Department Contact shall in writing approve, modify or reject t he Task Proposal, and may issue a Task Order.

D. The task shall be performed at a cost not to exceeding the Task Budget.

E. Consultant shall complete the task and deliver all deliverables to Department Contact by the Task Completion Date.

III. All work product is subject to review and acceptance by the City, and must be revised by the Consultant without additional charge to the City until found satisfactory and accepted by City.

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EXHIBIT "B"

CONTRACT MODIFICATIONS
(Superseding Contract Boilerplate)

Article 3, Section 3.1 of the Agreement is hereby replaced in its entirety to read as follows:

3.1 Term. The Agreement shall commence and become effective on the date executed b y the City and will continue until the Termination Date of June 30, 2028. This Agreement may be extended for up to three additional one -year periods based on satisfactory performance of the services called for in the Agreement, at the discretion of the City Manager with at least thirty (30) days written notice prior to the expiration of the initial term or any subsequent annual renewal.

Unless earlier terminated in accordance with Article 7 of this Agreement, this Agreement shall continue in full force an d effect until completion of any ongoing services, which shall be no later than the Termination Date forth above. Notwithstanding the foregoing, the Indemnification and Insurance provisions set forth in Article 5 shall survive the termination of the Agreement.

Exhibit D, Section 6 of the Agreement is hereby replaced in its entirety to read as follows:

6. Technology Professional Liability Errors & Omissions is not required. 216

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EXHIBIT “C”

SCHEDULE OF COMPENSATION

I. Consultant shall establish a Task Budget for each Task identifying the subtasks, based on the time and rates of the personnel performing the subtasks, and itemizing all materials and equipment utilized and the costs thereof. If payment is to be made other than at completion of the services, then the phases of the performance and percentage of payment due shall also be shown in the Task Proposal.

II. The total compensation for all Services, including any and all expenses, during the entire term of this Agreeme nt shall not exceed the Contract Sum as provided in the Cover Page of this Agreement.

III. Consultant’s billing rates for any hourly Services are attached as Exhibit C-1.

In connection with the services provided pursuant to the terms of this Agreement, City will pay Consultant upon City’s receipt of a written invoice provided by Consultant no more than monthly. City will pay Consultant for work completed, billed in increments of six minutes (0.1 hours), not to exceed the Contract Sum. The City will reimburse the Consultant for reasonable out -of-pocket expenses related to performing services on behalf of the Client that are approved in advance in writing by the City such as mileage, copies, binding costs, postage, parking, travel, and lodging expenses as part of the not to exceed Contract Sum. To receive reimbursements, the Consultant must provide the City with a receipt and a description of the expense incurred along with the invoice.

No mark up on expenses may be added.

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EXHIBIT “D”

INSURANCE REQUIREMENTS

Consultant shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Consultant, its agents, representatives, or employees.

MINIMUM SCOPE AND LIMIT OF INSURANCE

Coverage shall be at least as broad as:

1. Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on an “occurrence” basis, including prod ucts and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $2,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this proj ect/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.

2. Automobile Liability: Insurance Services Office Form Number CA 0001 covering, Code 1 (any auto), or if Consultant has no owned autos, Code 8 (hired) and 9 (non-owned), with limit no less than $1,000,000 per accident for bodily injury and property damage.

3. Workers’ Compensation insurance as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limit of no less than $1,000,000 per accident for bodily injury or disease. (Not required if consultant provides written verification it has no employees)

4. Professional Liability (Errors and Omissions) Insurance appropriates to the Consultant’s profession, with limit no less than $2,000,000 per occurrence or claim, $2,000,000 aggregate.

5. Cyber: Vendor/Consultant shall procure and maintain for the duration of the contract insurance against claims for security breaches, system failures, injuries to persons, damages to software, or damages to property (including computer equipment) which may arise from or in connection with the performance of the work hereunder by the Vendor, its agents, representatives, or employees. Vendor shall procure and maintain for the duration of the contract insurance claims arising out of their services and including, but not limited to loss, damage, theft or other misuse of data, infringement of intellectual property, invasion of privacy and breach of data.

Cyber Liability Insurance, with limits not less than $2,000,000 per occurrence or claim, $2,000,000 aggregate. Coverage shall be sufficiently broad to respond to the duties and obligations as is undertaken by Vendor in this agreement and shall include, but not be limited to, claims involving security breach, system failure, data recovery, business interruption, cyber ex tortion, social engineering, infringement of intellectual property, 218

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including but not limited to infringement of copyright, trademark, trade dress, invasion of privacy violations, information theft, damage to or destruction of electronic information, release of private information, and alteration of electronic information. The policy shall provide coverage for breach response costs, regulatory fines and penalties as well as credit monitoring expenses.

6. Technology Professional Liability Errors & Omissions (Only if vendor is providing a technology service (data storage, website designers, etc.,) or product (software providers)
Technology Professional Liability Errors and Omissions Insurance appropriate to the Consultant’s profession and work hereunder, wi th limits not less than $2,000,000 per occurrence. Coverage shall be sufficiently broad to respond to the duties and obligations as is undertaken by the Vendor in this agreement and shall include, but not be limited to, claims involving security breach, system failure, data recovery, business interruption, cyber extortion, social engineering, infringement of intellectual property, including but not limited to infringement of copyright, trademark, trade dress, invasion of privacy violations, information theft, damage to or destruction of electronic information, release of private information, and alteration of electronic information. The policy shall provide coverage for breach response costs, regulatory fines and penalties as well as credit monitoring expenses.

a. The Policy shall include, or be endorsed to include, property damage liability coverage for damage to, alteration of, loss of, or destruction of electronic data and/or information “property” of the Agency in the care, custody, or control of the Vendor.

If the Consultant maintains broader coverage and/or higher limits than the minimums shown above, the City requires and shall be entitled to the broader coverage and/or the higher limits maintained by the consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.

Other Insurance Provisions
The insurance policies are to contain, or be endorsed to contain, the following provisions:

Additional Insured Status
The City, its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Consultant including materials, parts, or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the Consultant's insurance (at least as broad as ISO Form CG 20 10 11 85 or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 if a later edition is used).

Primary Coverage
For any claims related to this contract, the Consultant’s insurance coverage shall be primary and non -contributory and at least as broad as ISO CG 20 01 04 13 as respects the City, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Consultant’s insurance and shall not contribute with it. This requirement shall also apply to any Excess or Umbrella liability policies.
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Umbrella or Excess Policy
The Consultant may use Umbrella or Excess Policies to provide the liability limits as required in this agreement. This form of insurance will be acceptable provided that all of the Primary and Umbrella or Excess Policies shall provide all of the insurance coverages herein required, including, but not limited to, primary and non -contributory, additional insured, Self -Insured Retentions (SIRs), indemnity, and defense requirements. The Umbrella or Excess policies shall be provided on a true “following form” or broader coverage basis, with coverage at least as broad as provided on the underlying Commercial General Liability insurance. No insurance policies maintained by the Additional Insureds, whether primary or excess, and which also apply to a loss covered hereunder, shall be called upon to contribute to a loss until the C onsultant’s primary and excess liability policies are exhausted.

Notice of Cancellation
Each insurance policy required above shall provide that coverage shall not b e canceled, except with notice to the City.

Waiver of Subrogation
Consultant hereby grants to City a waiver of any right to subrogation which any insurer of said Consultant may acquire against the City by virtue of the payment of any loss under such insurance.

Consultant agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.

Self-Insured Retentions
Self-insured retentions must be declared to and approved by the City. The City may require the Consultant to purchase coverage with a lower retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention. The policy language shall provide, or be endorsed to provide, that the self -insured retention may be satisfied by either the named insured or City. The CGL and any policies, including Excess liability policies, may not be subject to a self -insured retention (SIR) or deductible that exceeds $25,000 unless approved in writing by City. Any and all deductibles and SIRs shall be the sole responsibility of Consultant or subcontractor who procured such insurance and shall no t apply to the Indemnified Additional Insured Parties. City may deduct from any amounts otherwise due Consultant to fund the SIR/deductible. Policies shall NOT contain any self-insured retention (SIR) provision that limits the satisfaction of the SIR to th e Named. The policy must also provide that Defense costs, including the Allocated Loss Adjustment Expenses, will satisfy the SIR or deductible. City reserves the right to obtain a copy of any policies and endorsements for verification.

Acceptability of Insurers
Insurance is to be placed with insurers authorized to conduct business in the state with a current A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the City.

Claims Made Policies (note – should be applicable only to professional liability, see below) If any of the required policies provide claims-made coverage:
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1. The Retroactive Date must be shown, and must be before the date of the contract or the beginning of contract work.

2. Insurance must be maintained and evidenc e of insurance must be provided for at least five (5) years after completion of the contract of work.

3. If coverage is canceled or non -renewed, and not replaced with another claims -made policy form with a Retroactive Date prior to the contract effective date, the Consultant must purchase “extended reporting” coverage for a minimum of five (5) years after completion of work.

Verification of Coverage
Consultant shall furnish the City with original certificates and amendatory endorsements or copies of the app licable policy language effecting coverage required by this clause and a copy of the Declarations and Endorsements Pages of the CGL and any Excess policies listing all policy endorsements. All certificates and endorsements and copies of the Declarations & Endorsements pages are to be received and approved by the City before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the Con sultant’s obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.

City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.

Subcontractors
Consultant shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein, and Contractor shall ensure that City is an additional insured on insurance required from subcontractors.

Duration of Coverage
CGL & Excess liability policies for any construction related work, including, but not limited to, maintenance, service, or repair work, shall continue coverage for a minimum of 5 years for Completed Operations liability coverage. Such Insurance must be maintained , and evidence of insurance must be provided for at least five (5) years after completion of the contract of work.

Special Risks or Circumstances
City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.

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RFP – 2025 TRAFFIC COUNTS

31894 Whitetail Ln, Temecula, CA 92592 www.fdsaz.com Offices: San Diego, Ca –Maricopa, Az (Corp.HQ) 1 Table of Contents

Table of Contents Page 1

Letter of Transmittal Page 2

Qualifications. (Abilities, Experience and Expertise) Page 3

Descriptions of firm’s traffic count capabilities Page 3

Organization Chart Page 4

Firms Relevant Experience/Available Staff Resources Page 5-6

Proof of Insurance Page 7

Confirmation of project understanding Page 8

Fee/Cost proposal for itemized task (scope of work) Page 9

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31894 Whitetail Ln, Temecula, CA 92592 www.fdsaz.com Offices: San Diego, Ca –Maricopa, Az (Corp.HQ) 2 City of Murrieta
1 Town Square
Murrieta, CA 92562

Attn: Anita I. Agyeman

Friday, September 26, 2025

Letter of Transmittal

Dear Anita Agyeman,

Field Data Services of Arizona, Inc. (FDS) is pleased to submit this proposal in response to RFP – 2025 Traffic Counts. Our proposal includes detailed costs and the requested information for your review. FDS’ extensive experience and proven track record ensure our ability to successfully fulfill this contract.

With over 33 years of traffic data collection experience serving both government agencies and private firms, FDS has established a reputation for understanding and meeting our clients’ specific needs and project requirements. Our fleet includes more than 200 Classification/Speed Traffic Counters and 50 Video Turning Movement Count units, allowing us to provide comprehensive and accurate traffic data collection services.

Sharon E. Morris will serve as the primary point of contact for the duration of this contract. Her resume, along with those of her support staff, is included for your reference.

We believe this proposal demonstrates FDS’ thorough understanding of the City of Murrieta’s project and our ability to complete it on time and on budget. Field Data Services of Arizona, Inc. looks forward to the opportunity to provide professional traffic data collection services and to further build our record of successful projects. Field Data Services of Arizona, Inc is a “Company you can count on”. For more information about our firm, please go to: www.fdsaz.com

Sincerely,

Sharon Morris
President

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31894 Whitetail Ln, Temecula, CA 92592 www.fdsaz.com Offices: San Diego, Ca –Maricopa, Az (Corp.HQ) 3 Statement of Qualifications
Field Data Services of Arizona, Inc. (FDS) is pleased to submit our qualifications to provide professional traffic counting services for the City of Murrieta. With over 33 years of experience in traffic data collection for government agencies and private clients, FDS has successfully completed projects of similar scope and complexity throughout the Western United States. Our team combines extensive technical expertise with state- of-the-art equipment to deliver accurate, reliable, and timely traffic data.

Relevant Experience and Firms Traffic Count Capabilities:

1. 24-Hour Machine (Tube) Counts – Volume, Speed, and Classification FDS operates over 200 Classification/Speed Traffic Counters capable of capturing vehicle volume, speed, and classification for each direction and combined directions. We have successfully conducted continuous 24-hour counts in both urban and suburban environments, ensuring high-quality, verifiable data suitable for traffic analysis and planning.

2. Turning Movement Counts (TMCs)
FDS maintains a fleet of over 50 Video Turning Movement Count (VTMC) units, allowing precise collection of turning movement data for passenger vehicles, trucks, pedestrians, and bicyclists. Our team is experienced in performing peak-hour counts, including school zone surveys, and providing detailed reports with separate printouts for each category.

3. Radar Speed Surveys
FDS conducts radar surveys in accordance with the California Manual on Uniform Traffic Control Devices (MUTCD). Our surveys provide reliable speed data, including the 85th percentile speed, to support speed ordinance updates.

Key Personnel
Sharon E. Morris will serve as the primary point of contact and project manager for this contract. Mrs. Morris has extensive experience in traffic data collection, project oversight, and client communications. Her support staff is highly trained in all aspects of traffic data collection, processing, and reporting.

Technical Strengths and Advantages
• Ability to collect and report data accurately for each direction and combined directions. • Advanced video and machine-count technology for efficient and reliable data collection. • Proven ability to conduct counts during peak hours and school zone periods. • Timely and detailed reporting with clear data categorization.

Field Data Services of Arizona Inc. is committed to providing the City of Murrieta with professional, dependable traffic data collection services. Our experience, personnel, and technology ensure that the city will receive the highest quality data delivered on time and on budget.

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31894 Whitetail Ln, Temecula, CA 92592 www.fdsaz.com Offices: San Diego, Ca –Maricopa, Az (Corp.HQ) 4 225
RFP – 2025 TRAFFIC COUNTS

31894 Whitetail Ln, Temecula, CA 92592 www.fdsaz.com Offices: San Diego, Ca –Maricopa, Az (Corp.HQ) 5 Firm’s Relevant Experience / Available Staff Resources Field Data Services of Arizona, Inc. (FDS) has more than 33 years of experience providing professional traffic data collection and analysis services for municipalities, government agencies, and private engineering firms throughout the Western United States. Our firm has successfully completed hundreds of traffic count projects, including 24-hour machine counts, turning movement counts, classification and speed studies, and radar speed surveys in accordance with the California MUTCD requirements.

Relevant Experience
FDS has extensive experience conducting projects of similar scope and scale for clients including the City of San Diego, City of Chula Vista, City of El Cajon, City of Oceanside, and various local traffic engineering consultants. Our team is familiar with the scheduling, data collection standards, and reporting formats required by municipal and regional agencies.

City of San Diego
Contact: Philip Rust 619.533.3714 1200 3
rd Ave., Suite 200, San Diego, CA 92101-4195
Work Performed: Conducted more than 500 Turning Movement Counts, 1,200 bi-directional volume counts, 400 bi-directional speed counts, more than 40 pedestrian gap counts and more than 10 parking duration studies per year.

City of El Cajon
Contact: Mario Sanchez 619.441.1651 200 Civic Center Way, El Cajon, CA 92020-3916 Work Performed: Conducted more than 121 bi-directional volume counts, 40 7-Day bi-directional volume counts, 30 Speed / Classification counts, 15 Turning Movement Counts

City of La Mesa
Contact: Brian Damiani 8130 Allison Ave., La Mesa, CA 91942 Work Performed: Turning Movement Counts, bi-directional volume counts, Classification/Speed counts

City of Chula Vista
Contact: Carlos Perez 619.476.2355 276 Fourth Ave, Chula Vista, CA 91910 Work Performed: Turning Movement Counts, bi-directional volume counts, Classification/Speed counts

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31894 Whitetail Ln, Temecula, CA 92592 www.fdsaz.com Offices: San Diego, Ca –Maricopa, Az (Corp.HQ) 6 Project Types Completed:
• 24-hour machine (tube) counts for volume, speed, and classification • Peak-hour turning movement counts (TMCs) including vehicles, pedestrians, and bicyclists • School-zone TMCs during multiple peak periods
• Radar speed surveys for ordinance updates
• Multi-day and seasonal traffic monitoring studies
FDS prides itself on the accuracy, reliability, and completeness of our data. We use state-of-the-art field and office technologies, maintain strict quality control procedures, and ensure every data set meets agency standards.

Available Staff Resources
FDS’s in-house team, supported by a comprehensive equipment inventory, enables simultaneous management of multiple large-scale projects. We will dedicate 100% of our staff to this contract to ensure optimal performance and timely delivery.
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31894 Whitetail Ln, Temecula, CA 92592 www.fdsaz.com Offices: San Diego, Ca –Maricopa, Az (Corp.HQ) 7 228
RFP – 2025 TRAFFIC COUNTS

31894 Whitetail Ln, Temecula, CA 92592 www.fdsaz.com Offices: San Diego, Ca –Maricopa, Az (Corp.HQ) 8 Confirmation of Project Understanding
Field Data Services of Arizona, Inc. (FDS) fully understands the City of Murrieta’s objectives for this contract:
to obtain accurate, comprehensive, and reliable traffic data that supports traffic engineering, planning, and operational decisions. Our firm recognizes the importance of performing all counts under typical weekday conditions (Tuesday, Wednesday, or Thursday) when local schools are in session to ensure representative data for analysis.

Scope Comprehension
FDS acknowledges that the work will include a combination of 24-hour machine (tube) counts, turning movement counts (TMCs), and radar speed surveys, each performed in accordance with the California Manual on Uniform Traffic Control Devices (MUTCD) and City standards.

We understand that the services will include:
• Conducting 24-hour tube counts to collect data on traffic volume, speed, and vehicle classification for each direction and combined directions.
• Performing turning movement counts during designated AM and PM peak hours (or any other stated timeframes given), including classification of passenger vehicles, trucks, pedestrians, and bicyclists, with clear separate reporting for each.
• Executing extended TMCs near school zones to accurately capture school-related traffic activity across multiple peak periods.
• Completing radar speed surveys to support speed ordinance updates, providing summarized data such as 85th percentile speeds and direction-specific results.

Approach to Project Execution
FDS will deploy our experienced field teams and calibrated equipment to each location following a structured schedule coordinated with City staff. Data will be reviewed and processed by our in-house analysts to ensure accuracy and consistency with MUTCD and City data requirements. All results will be formatted per City specifications and delivered electronically within the agreed timeline.

Our team’s project manager, Sharon E. Morris, will serve as the single point of contact, responsible for project coordination, scheduling, communication, and final QA/QC review prior to submission.

Commitment
FDS is committed to providing the City of Murrieta with:
• Accurate, verifiable, and high-quality traffic data
• Timely completion of all assignments
• Professional communication and responsiveness
• A dependable partnership focused on the City’s goals and data needs 229
RFP – 2025 TRAFFIC COUNTS

31894 Whitetail Ln, Temecula, CA 92592 www.fdsaz.com Offices: San Diego, Ca –Maricopa, Az (Corp.HQ) 9 Proposed Fee Schedule – City of Murrieta Traffic Count Services Item
No. Scope of Work Description Unit Unit
Price ($)

1 Conduct 24-hour machine (tube) counts for traffic volume, providing data for each direction and combined directions. Per Location $100.00 2 Conduct 24-hour machine (tube) counts for traffic volume and speed, providing data for each direction and combined directions. Per Location $180.00 3 Conduct 24-hour machine (tube) counts for traffic volume, speed, and vehicle classification, providing data for each direction and combined directions. Per Location $180.00 4 Conduct turning movement counts from 7:00 a.m.–9:00 a.m. and 4:00 p.m.– 6:00 p.m., including passenger vehicles, trucks, pedestrians, and bicyclists, with separate printouts for each category.

Per
Intersection
$220.00
5 Conduct school zone turning movement counts from 6:00 a.m.–9:00 a.m., 11:00 a.m.–1:00 p.m., and 2:00 p.m.–6:00 p.m., including passenger vehicles, trucks, pedestrians, and bicyclists, with separate printouts for each category.

Per
Intersection
$495.00
6 Conduct radar surveys for speed ordinance updates per California MUTCD, providing summary of surveyed speeds (including 85th percentile) for each direction and combined directions.

Per Location $110.00

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106 N Poinsettia Pl, Los Angeles, CA 90036
(323)782-0090 | [email protected] | www.ndsdata.com

City of Murrieta
Proposal for
Traffic Counts for Public Works
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