National City City Council
June 30, 2026

Amended Agreement Page 1 of 2 CDC-HA and
Revised January 2024 Keyser Marston Associates, Inc. (KMA)

AMENDMENT TO THE AGREEMENT

BY AND BETWEEN

COMMUNITY DEVELOPMENT COMMISSION-HOUSING AUTHORITY OF THE

CITY OF NATIONAL CITY
AND
KEYSER MARSTON ASSOCIATES, INC. (KMA)

THIS FIRST AMEDNMENT TO THE AGREEMENT is entered into this ___ of _____, 2026 by and between the COMMUNITY DEVELOPMENT COMMISSION- HOUSING AUTHORITY OF THE COMMUNITY DEVELOPMENT , a municipal corporation ( “CDC- HA”), and KEYSER MARSTON ASSOCIATES , INC. (KMA), a California corporation (“CONSULTANT”).

R E C I T A L S
WHEREAS, the CDC-HA and the CONSULTANT entered into an Agreement on January 21, 2025 (“Agreement”), wherein the CONSULTANT agreed to provide consulting services related to draf ting, soliciting, and evaluat ing an RFP/Q for City -owned properties to create for - sale homeownership opportunitie s, for a not- to-exceed amount of $89,000, and an initial term through June 30, 2026, with the option to extend this term for up to three (3) one-year extensions; and

WHEREAS, the parties desire to amend the Agreement by exercising the first of the three (3) one year options to extend the term of the Agreement to June 30, 2027; and WHEREAS, the parties desire to extend the scope of services to continue the evaluation of proposals, including supplemental feasibility analyses and additional meetings; and

WHEREAS, the parties desire to amend the Agreement to cover the cost of providing the increased scope of services from the amount of $89,000 to the not-to-exceed amount by $20,000, for a total not-to-exceed amount of $109,000.

AGREEMENT

NOW, THEREFORE, the parties hereto agree that:

1. The January 21, 2025 Agreement in exercise of the option provision, is hereby amended to extend the term of the Agreement by one (1) year to June 30, 2027.

2. Exhibit “A” of the January 21, 2025 Agreement is hereby amended to expand the scope of services as set forth in the June 22, 2026 letter, attached as Attachment 1.

3. The January 21, 2025 Agreement is hereby amended to cover the cost of the increased scope of services from the original contract amount of $89,000 to the not-to-exceed amount by $20,000, for a total not-to-exceed amount of $109,000.

Attachment No. 1

BERKELEY LOS ANGELES SAN DIEGO LARKSPUR

555 WEST BEECH STREET, SUITE 460  SAN DIEGO, CA 92101  (619) 718-9500  WWW.KEYSERMARSTON.COM 26047kal
16104.017

June 22, 2026

City of National City Housing Authority
Attn: Angelita Palma, Community Development Manager
140 E 12th Street, Suite B
National City, CA 91950

Subject: OWN NC RFP - Request for Budget Amendment

Dear Ms. Palma:

Keyser Marston Associates, Inc. (KMA) requests a budget modification to the Agreement by and between the Community Development Commission-Housing Authority of the City of National City (CDC- HA) and KMA effective January 21, 2025. KMA has been assisting the CDC-HA with the developer solicitation and evaluation of development proposals on six (6) City-owned properties (Properties). As part of this effort, tasks completed to date have included:

• Preparation of a developer Request for Proposals (RFP) for the development of the Properties, released on March 19, 2025
• Evaluation of development proposals and financial pro formas, received on June 6, 2025 • Review of developer financial statements and qualifications • Modelling of financial pro formas for each development proposal itemizing: acquisition, development costs, affordable sales prices, and proposed investment by the CDC-HA • Preparation of a presentation package summarizing the KMA findings and accompanied by our supporting technical analyses
• Attendance at the City Council meeting on May 29, 2026 to present the KMA findings and respond to comments from Council members

The work completed to date has exhausted the budget limit of $89,000. In order to continue to assist the CDC-HA, KMA requests a budget increase of $20,000. This budget increase will allow KMA to continue to move the project forward and undertake the following tasks:

• Participate in one (1) virtual meeting with CDC-HA staff to review goals, timeline, and other background information
• Review of an updated financial pro forma from Otumba LLC/San Andres Real Estate Group (Developer) for Site 4 (A Avenue Lot) to include development planned on two (2) additional parcels (APN 556-553-15-00 and APN 556-553-14-00) owned by the Developer

Angelita Palma, Community Development Manager June 22, 2026 City of National City Page 2

26047kal
16104.017

• Model the Developer’s updated pro forma, itemizing acquisition costs, development costs (direct, indirect, and financing), affordable sales prices, and proposed sources of financing • If needed, submit one (1) data request to the Developer in order to obtain missing information or clarification
• Evaluate up to one (1) subsequent development/pro forma alternative pertaining to project description, costs, income, and/or overall financing plan • Document our findings in a presentation to City staff, accompanied by supporting technical analyses. • Participate in up to two (2) briefings with City Council members • Prepare for and attend one (1) public meeting with the City Council. Preparation will include presentation materials and/or responses to comments from Council members

The requested budget amendment includes the following maximums:

• Analysis of one (1) updated development proposal for Site 4 from the Developer • Analysis of one (1) subsequent development/pro forma alternative based on clarification or missing information provided by the Developer
• Maximum of two (2) meetings with CDC-HA staff
• Maximum of three (3) public meetings, including briefings, with Council members • Maximum of two (2) versions of each deliverable, i.e., draft and final, in PDF format only

Our scope and budget specifically excludes:

• Review of any updated development proposals for Site 4 from Community HousingWorks • Review of any updated proposals for the other Properties • Negotiations of business terms with selected developers • Analyses of matters of a legal, planning/design, or environmental nature

Thank you in advance for your consideration. If you have any questions regarding this proposal, please do not hesitate to call me at (619) 718-9500 x104.

Best regards,

KEYSER MARSTON ASSOCIATES, INC.

Linnie A. Gavino
Senior Principal

KEYSER MARSTON ASSOCIATES, INC.

PUBLIC SECTOR HOURLY RATES

2026/2027

CHAIRMAN, PRESIDENT, MANAGING PRINCIPALS* $320.00

SENIOR PRINCIPALS* $310.00

PRINCIPALS* $290.00

MANAGERS* $260.00

SENIOR ASSOCIATES $215.00

ASSOCIATES $195.00

SENIOR ANALYSTS $180.00

ANALYSTS $155.00

TECHNICAL STAFF $115.00

ADMINISTRATIVE STAFF $95.00

Directly related job expenses not included in the above rates are: auto mileage, parking, air fares, hotels and motels, meals, car rentals, taxies, telephone calls, delivery, electronic data processing, graphics and printing. Directly related job expenses will be billed at 110% of cost.

Monthly billings for staff time and expenses incurred during the period will be payable within thirty (30) days of invoice date.

* Rates for individuals in these categories will be increased by 50% for time spent in court testimony.

Standard Agreement Page 4 of 13 CDC-HA and
Revised January 2024 Keyser Marston Associates, Inc. (KMA)

11. LICENSES, PERMITS, ETC . The CONSULTANT represents and covenants that it has all licenses, permits, qualifications, and approvals of whatever nature that are legally required to practice its profession. CONSULTANT must promptly produce a copy of any such license, permit, or approval to CDC -HA upon request. The CONSULTANT represents and covenants that the CONSULTANT shall, at its sole cost and expense, keep in effect at all times during the term of this Agreement, any license, permit, or approval which is legally required for the CONSULTANT to practice its profession.

12. STANDARD OF CARE.

A. The CONSULTANT, in performing any services under this Agreement, shall perform in a manner consistent with that level of care and skill ordinarily exercised by members of the CONSULTANT’s trade or profession currently practicing under similar conditions and in similar locations. The CONSULTANT shall take all special precautions necessary to protect the CONSULTANT’s employees and members of the public from risk of harm arising out of the nature of the work and/or the conditions of the work site.

B. Unless disclosed in writing prior to the date of this Agreement, the CONSULTANT warrants to the CDC -HA that it is not now, nor has it for the five (5) years preceding, been debarred by a governmental agency or involved in debarment, arbitration, or litigation proceedings concerning the CONSULTANT’ s professional performance or the furnishing of materials or services relating thereto.

C. The CONSULTANT is responsible for identifying any unique products, treatments, processes, or materials whose availability is critical to the success of the project the CONSULTANT has been retained to perform, within the time requirements of the CDC -HA, or, when no time is specified, then within a commercially reasonable time. Accordingly, unless the CONSULTANT has notified the CDC -HA otherwise, the CONSULTANT warrants that all products, materials, processes, or treatments identified in the project documents prepared for the CDC-HA are reasonably commercially available. Any failure by the CONSULTANT to use due diligence under this sub- section will render the CONSULTANT liable to the CDC -HA for any increased costs that result from the CDC -HA’s later inability to obtain the specified items or any reasonable substitute within a price range that allows for project completion in the time frame specified or, when not specified, then within a commercially reasonable time.

13. DRUG FREE WORKPLACE. The CONSULTANT agrees to comply with the CDC-HA’s Drug-Free Workplace requirements. Every person awarded a contract by the CDC - HA for the provision of services shall certify to the CDC -HA that it will provide a drug- free workplace. Any subcontract entered into by the CONSULTANT pursuant to this Agreement shall contain this provision.

14. NON-DISCRIMINATION PROVISIONS . The CONSULTANT shall not discriminate against any employee or applicant for employment because of age, race, color, ancestry, religion, sex, sexual orientation, marital status, national origin, physical handicap, or medical condition. The CONSULTANT will take positive action to insure that applicants are employed without regard to their age, race, color, ancestry, religion, sex, sexual orientation, marital status, national origin, physical handicap, or medical condition. Such action shall include, but not be limited to , the following: employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. The CONSULTANT agrees to post in conspicuous

Standard Agreement Page 5 of 13 CDC-HA and
Revised January 2024 Keyser Marston Associates, Inc. (KMA)

places available to employees and applicants for employment any notices provided by the CDC - HA setting forth the provisions of this non-discrimination clause.

15. CONFIDENTIAL INFORMATION. The CDC-HA may from time to time communicate to the CONSULTANT certain confidential information to enable the CONSULTANT to effectively perform the services to be provided herein. The CONSULTANT shall treat all such information as confidential and shall not disclose any part thereof without the prior written consent of the CDC -HA. The CONSULTANT shall limit the use and circulation of such information, even within its own organization, to the extent necessary to perform the services to be provided herein. The foregoing obligation of this Section 15, however, shall not apply to any part of the information that (i) has been disclosed in publicly available sources of information; (ii) is, through no fault of the CONSULTANT, hereafter disclosed in publicly available sources of information; (iii) is alre ady in the possession of the CONSULTANT without any obligation of confidentiality; or (iv) has been or is hereafter rightfully disclosed to the CONSULTANT by a third party, but only to the extent that the use or disclosure thereof has been or is rightfully authorized by that third party.

The CONSULTANT shall not disclose any reports, recommendations, conclusions, or other results of the services or the existence of the subject matter of this Agreement without the prior written consent of the CDC -HA. In its performance hereunder, the CONSULTANT shall comply with all legal obligations it may now or hereafter have respecting the information or other property of any other person, firm, or corporation.

CONSULTANT shall be liable to CDC -HA for any damages caused by breach of this condition, pursuant to the provisions of Section 16.

16. INDEMNIFICATION AND HOLD HARMLESS . To the maximum extent provided by law, the CONSULTANT agrees to defend, indemnify, and hold harmless the CDC - HA, its officers, officials, agents, employees, and volunteers against and from any and all liability, loss, damages to property, injuries to, or death of any person or persons, and all claims, demands, suits, actions, proceedings, reasonable attorneys’ fees, and defense costs, of any kind or nature, including workers’ compensation claims, of or by anyone whomsoever, resulting from or arising out of the CONSULTANT’ s negligence or willful misconduct in the performance or other obligations under this Agreement; provided, however, that this indemnification and hold harmless shall not include any claims or liability arising from the established sole negligence or willful misconduct of the CDC -HA, its agents, officers, employees , or volunteers. CDC -HA will cooperate reasonably in the defense of any action, and CONSULTANT shall employ competent counsel, reasonably acceptable to the City Attorney.

The indemnity, defense, and hold harmless obligations contained herein shall survive the termination of this Agreement for any alleged or actual omission, act, or negligence under this Agreement that occurred during the term of this Agreement.

17. EMPLOYEE PAYMENTS AND INDEMNIFICATION.

17.1 PERS Eligibility Indemnification . If CONSULTANT ’s employee(s) providing services under this Agreement claims, or is determined by a court of competent jurisdiction or the California Public Employees Retirement System (“PERS”) to be eligible for enrollment in PERS of the CITY, CONSULTANT shall indemnify, defend, and hold harmless CDC -HA for the payment of any employer and employee contributions for PERS benefits on behalf of the

Standard Agreement Page 6 of 13 CDC-HA and
Revised January 2024 Keyser Marston Associates, Inc. (KMA)

employee as well as for payment of any penalties and interest on such contributions which would otherwise be the responsibility of the CDC-HA.

CONSULTANT’S employees providing service under this Agreement shall not:
(1) qualify for any compensation and benefit under PERS; (2) be entitled to any benefits under PERS; (3) enroll in PERS as an employee of CDC- HA; (4) receive any employer contributions paid by CDC -HA for PERS benefits; or (5) be entitled to any other PERS -related benefit that would accrue to a CDC-HA employee. CONSULTANT’s employees hereby waive any claims to benefits or compensation described in this Section 17. This Section 17 applies to CONSULTANT notwithstanding any other agency, state , or federal policy, rule, regulation, law , or ordinance to the contrary.

17.2 Limitation of CDC-HA Liability. The payment made to CONSULTANT under this Agreement shall be the full and complete compensation to which CONSULTANT and CONSULTANT’s officers, employees, agents, and subcontractors are entitled for performance of any work under this Agreement. Neither CONSULTANT nor CONSULTANT’s officers, employees, agents, and subcontractors are entitled to any salary or wages, or retirement, health, leave, or other fringe benefits applicable to CDC-HA employees. The CDC-HA will not make any federal or state tax withholdings on behalf of CONSULTANT. The CDC-HA shall not be required to pay any workers’ compensation insurance on behalf of CONSULTANT.

17.3 Indemnification for Employee Payments . CONSULTANT agrees to defend and indemnify the CDC-HA for any obligation, claim, suit, or demand for tax, retirement contribution including any contribution to PERS, social security, salary or wages, overtime payment, or workers’ compensation payment which the CDC -HA may be required to make on behalf of (1) CONSULTANT, (2) any employee of CONSULTANT, or (3) any employee of CONSULTANT construed to be an employee of the CDC -HA, for work performed under this Agreement. This is a continuing obligation that survives the termination of this Agreement.

18. WORKERS’ COMPENSATION. The CONSULTANT shall comply with all of the provisions of the Workers’ Compensation Insurance and Safety Acts of the State of California, the applicable provisions of Division 4 and 5 of the California Labor Code, and all amendments thereto; and all similar s tate or federal acts or laws applicable; and shall indemnify, and hold harmless the CDC -HA and its officers, employees, and volunteers from and against all claims, demands, payments, suits, actions, proceedings, and judgments of every nature and description, including reasonable attorney’s fees and defense costs presented, brought, or recovered against the CDC-HA or its officers, employees, or volunteers, for or on account of any liability under any of said acts which may be incurred by reason of any work to be performed by the CONSULTANT under this Agreement.

19. INSURANCE. The CONSULTANT, at its sole cost and expense, shall purchase and maintain, and shall require its SUBCONSULTANT(S), when applicable, to purchase and maintain throughout the term of this Agreement, the following insurance policies:

A. If checked, Professional Liability Insurance (errors and omissions) with minimum limits of $1,000,000 per occurrence.

B. Automobile Insurance covering all bodily injury and property damage incurred during the performance of this Agreement, with a minimum coverage of $1,000,000

Standard Agreement Page 7 of 13 CDC-HA and
Revised January 2024 Keyser Marston Associates, Inc. (KMA)

combined single limit per accident. Such automobile insurance shall include owned, non -owned, and hired vehicles. The policy shall name the CDC -HA and its officers, agents, employees, and volunteers as additional insureds, and a separate additional insured endorsement shall be provided.

C. Commercial General Liability Insurance, with minimum limits of either $2,000,000 per occurrence and $4,000,000 aggregate, or $1,000,000 per occurrence and $2,000,000 aggregate with a $2,000,000 umbrella policy, covering all bodily injury and property damage arising out of its operations, work, or performance under this Agreement. The policy shall name the CDC-HA and its officers, agents, employees, and volunteers as additional insureds, and a separate additional insured endorsement shall be provided. The general aggregate limit must apply solely to this “project” or “location”. The “project” or “location” should be noted with specificity on an endorsement that shall be incorporated into the policy.

D. Workers’ Compensation Insurance in an amount sufficient to meet statutory requirements covering all of CONSULTANT’ s employees and employers’ liability insurance with limits of at least $1,000,000 per accident. In addition, the policy shall be endorsed with a waiver of subrogation in favor of the CDC -HA. Said endorsement shall be provided prior to commencement of work under this Agreement.

If CONSULTANT has no employees subject to the California Workers’ Compensation and Labor laws, CONSULTANT shall execute a Declaration to that effect. Said Declaration shall be provided to CONSULTANT by CDC-HA.

E. The aforesaid policies shall constitute primary insurance as to the CDC-HA, its officers, officials, employees, and volunteers, so that any other policies held by the CDC -HA shall not contribute to any loss under said insurance. Said policies shall provide for thirty (30) days prior written notice to the CDC-HA’s Risk Manager, at the address listed in subsection G below, of cancellation or material change.

F. If required insurance coverage is provided on a “claims made” rather than “occurrence” form, the CONSULTANT shall maintain such insurance coverage for three (3) years after expiration of the term (and any extensions) of this Agreement. In addition, the “retro” date must be on or before the date of this Agreement.

G. The Certificate Holder for all policies of insurance required by this Section shall be:

Community Development Commission-
Housing Authority of the City of National City
c/o Risk Manager
1243 National City Boulevard
National City, CA 91950-4397

H. Insurance shall be written with only insurers authorized to conduct business in California that hold a current policy holder’s alphabetic and financial size category rating of not less than A:VII according to the current Best’s Key Rating Guide, or a company of equal financial stability that is approved by the CDC-HA’s Risk Manager. In the event coverage is provided by non-admitted “surplus lines” carriers, they must be included on the most recent List of Approved Surplus Line Insurers (“LASLI”) and otherwise meet rating requirements.

I. This Agreement shall not take effect until certificate(s) or other sufficient proof that these insurance provisions have been complied with, are filed with and approved by the CDC-HA’s Risk Manager. If the CONSULTANT does not keep all insurance policies required by this Section 19 in full force and effect at all times during the term of this Agreement, the CDC-HA

Standard Agreement Page 8 of 13 CDC-HA and
Revised January 2024 Keyser Marston Associates, Inc. (KMA)

may treat the failure to maintain the requisite insurance as a breach of this Agreement and terminate the Agreement as provided herein.

J. All deductibles and self-insured retentions in excess of ten-thousand dollars ($10,000) must be disclosed to and approved by the CDC -HA. CDC-HA reserves the right to modify the insurance requirements of this Section 19, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.

K. If the CONSULTANT maintains broader coverage or higher limits (or both) than the minimum limits shown above, the CDC -HA shall be entitled to the broader coverage or higher limits (or both) maintained by the CONSULTANT. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the CDC - HA.

20. LEGAL FEES. If any party brings a suit or action against the other party arising from any breach of any of the covenants or agreements or any inaccuracies in any of the representations and warranties on the part of the other party arising out of this Agreement, then in that event, the prevailing party in such action or dispute, whether by final judgment or out-of-court settlement, shall be entitled to have and recover of and from the other party all costs and expenses of suit, including attorneys’ fees.

For purposes of determining who is to be considered the prevailing party, it is stipulated that attorney’s fees incurred in the prosecution or defense of the action or suit shall not be considered in determining the amount of the judgment or award. Attorney’s fees to the prevailing party if other than the CDC -HA shall, in addition, be limited to the amount of attorney’s fees incurred by the CDC -HA in its prosecution or defense of the action, irrespective of the actual amount of attorney’s fees incurred by the prevailing party.

21. TERMINATION.

A. This Agreement may be terminated with or without cause by the CDC-HA.

Termination without cause shall be effective only upon sixty (60) day’s written notice to the CONSULTANT. During said sixty (60) day period the CONSULTANT shall perform all services in accordance with this Agreement.

B. This Agreement may also be terminated immediately by the CDC -HA for cause in the event of a material breach of this Agreement, misrepresentation by the CONSULTANT in connection with the formation of this Agreement or the performance of services, or the failure to perform services as directed by the CDC-HA.

C. Termination with or without cause shall be effected by delivery of written Notice of Termination to the CONSULTANT as provided for herein.

D. In the event of termination, all finished or unfinished Memoranda Reports, Maps, Drawings, Plans, Specifications , and other documents prepared by the CONSULTANT, whether paper or electronic, shall immediately become the property of and be delivered to the CDC-HA, and the CONSULTANT shall be entitled to receive just and equitable compensation for any work satisfactorily completed on such documents and other materials up to the effective date of the Notice of Termination, not to exceed the amounts payable hereunder, and less any damages caused the CDC-HA by the CONSULTANT’s breach, if any. Thereafter, ownership of said written material shall vest in the CDC-HA all rights set forth in Section 7.

E. The CDC-HA further reserves the right to immediately terminate this Agreement upon: (1) the filing of a petition in bankruptcy affecting the CONSULTANT; (2) a

Standard Agreement Page 9 of 13 CDC-HA and
Revised January 2024 Keyser Marston Associates, Inc. (KMA)

reorganization of the CONSULTANT for the benefit of creditors; or (3) a business reorganization, change in business name, or change in business status of the CONSULTANT.

22. NOTICES. All notices or other communications required or permitted hereunder shall be in writing, and shall be personally delivered; or sent by overnight mail (Federal Express or the like); or sent by registered or certified mail, postage prepaid, return receipt requested; or sent by ordinary mail, postage prepaid; or telegraphed or cabled; or delivered or sent by telex, telecopy, facsimile , or fax; and shall be deemed received upon the earlier of (i) if personally delivered, the date of delivery to the address of the person to receive such notice, (ii) if sent by overnight mail, the business day following its deposit in such overnight mail facility, (iii) if mailed by registered, certified, or ordinary mail, five (5) days (ten (10) days if the address is outside the State of California) after the date of deposit in a post office, mailbox, mail chute, or other like facility regularly maintained by the United States Postal Service, (iv) if given by telegraph or cable, when delivered to the telegraph company with charges prepaid, or (v) if given by telex, telecopy, facsimile, or fax, when sent. Any notice, request, demand, direction, or other communication delivered or sent as specified above shall be directed to the following persons:

To CDC-HA: Angelita Palma
Community Development Manager
National City Housing Authority
City of National City
1243 National City Boulevard
National City, CA 91950-4397

To CONSULTANT:

Linnie A Gavino
Senior Principal
Keyser Marston Associates, Inc.
555 W. Beech St., Suite 460, San Diego, CA 92101

Address for Payments: Keyser Marston Associates, Inc.
1299 Fourth St., Suite 408
San Rafael, CA 94901
Notice of change of address shall be given by written notice in the manner specified in this Section. Rejection or other refusal to accept or the inability to deliver because of changed address of which no notice was given shall be deemed to constitute receipt of the notice, demand, request, or communication sent. Any notice, request, demand, direction, or other communication sent by cable, telex, telecopy, facsimile, or fax must be confirmed within forty-eight (48) hours by letter mailed or delivered as specified in this Section.

23. CONFLICT OF INTEREST AND POLITICAL REFORM ACT
OBLIGATIONS. During the term of this Agreement, the CONSULTANT shall not perform services of any kind for any person or entity whose interests conflict in any way with those of the CDC-HA. The CONSULTANT also agrees not to specify any product, treatment, process , or material for the project in which the CONSULTANT has a material financial interest, either direct

RESOLUTION NO. 2026-

RESOLUTION OF THE BO ARD OF DIRECTORS OF THE COMMUNITY DEV ELOPMENT

COMMISSION-HOUSING AUTHORITY (C DC-HA) OF THE CITY OF N ATIONAL CITY,

CALIFORNIA, AUTHORIZING THE EXECUTIVE DI RECTOR OR DESIGNEE T O EXECUTE THE FIRST AMENDMENT TO THE JANUARY 21, 2 025 AGREEMENT WITH KEYSE R MARSTON ASSOCIATES, INC., TO EXTEND THE AGREEMENT BY ONE YEAR AND INCREASE THE COMPENSATION AMOUNT BY $20,000 TO CONTINUE THE EVALUATION

OF PROPOSALS RECEIVED FOR HOMEOWNERSHIP OPPORTUNITIES ON CITY-OWNED PROPERTIES.

WHEREAS, the Community Development Commission-Housing Authority of the City of National City (“CDC-HA”) seeks to increase homeownership opportunities for National City residents as a tool for pursuing fair housing and equal access to housing; and

WHEREAS, on January 21, 2025 , the CDC -HA entered into an agreement (“Agreement”) with Keyser Marston Associates, Inc. (“KMA”) through Resolution 2025-95 to draft, solicit, and evaluate a request for qualifications/proposals (“RFQ/P”) for City -owned properties to create for -sale homeownership opportunities (the “Own National City Home Ownership Initiative”); and

WHEREAS, a Special City Council Meeting was he ld on May 29, 2026 to review staff recommendations on the Own National City RFP proposals; and

WHEREAS, staff were requested to continue evaluation of development proposals, which may require supplemental feasibility analyses and additional meetings; and WHEREAS, staff proposes to extend the Agreement with KMA by one year and increase the compensation amount by $20,000 to cover the cost of the increased scope of services for continued analysis and evaluation of development proposals.

NOW, THEREFORE, BOARD OF DIRECTORS OF THE COMMUNITY DEVELOPMENT COMMISSION– HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS:

Section 1: That the Board of Directors hereby authorizes the Executive Director, or his designee, to execute the First Amendment to the January 21, 2025 Agreement with Keyser Marston Associates, Inc., increasing the compensation amount by $20,000 for a new total not- to-exceed amount of $109,000 to cover the cost of the expanded scope of services and extending the term of the agreement through June 30, 2027.

Section 2: That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions.

PASSED and ADOPTED this 30th day of June, 2026.

Douglas J. Schulze
Executive Director
ATTEST:

Shelley Chapel, MMC, Secretary

APPROVED AS TO FORM:

Heidi Skinner,
General Counsel

AGENDA REPORT

Department: Engineering and Public Works
Prepared by: Luca Zappiello, Principal Civil Engineer Meeting Date: Tuesday, June 30, 2026
Approved by: Douglas J. Schulze, City Manager

SUBJECT:

Second Amendment to the Agreement with BNSF Railway Company

RECOMMENDATION:

Adopt the Resolution Entitled, “Resolution of the City Council of the City of National City, California, Authorizing the City Manager to Execute the Second Amendment to Grade Crossing Construction and Maintenance Agreement with BNSF Railway Company for the Bayshore Bikeway Segment 5 and Connections Project, CIP No. 19-24.”

BOARD/COMMISSION/COMMITTEE PRIOR ACTION:

Not Applicable.

EXPLANATION:

The Bayshore Bikeway Segment 5 and Connections Project, CIP No. 19 -24 (Project), will add nearly 1.5 miles of protected bicycle facilities along Harbor Drive, McKinley Avenue, W. 23rd Street, and Marina Way in the City of National City (City). The Project also includes a dedicated pedestrian and bicycle pathway on 19th Street under the I -5 overpass, providing safer connections for vulnerable roadway users between the Westside Neighborhood and the Bayshore Bikeway.

To complete this Project, the bike lane alignment encroached on several parcels not owned solely by the City, but also by San Diego Gas & Electric Company, BNSF Railway Company, the San Diego Metropolitan Transit System, and the San Diego Unified Port District. Therefore, on June 20, 2023, the City, via Resolution No. 2023 -80, entered into an agreement with these agencies granting the City the right to install the bike lane on their properties.

The agreement executed by the City Council on June 20, 2023, with BNSF granted the City the right to install the Project improvements on two BNSF properties located along Harbor Drive, north of Civic Center Drive, and along Bay Marina Drive, west of Cleveland Avenue.

After completing further review of the project scope to identify cost reductions , the City decided to realign the bicycle facilities along Bay Marina Drive, which would result in removing the encroachment on the BNSF property. This change resulted in savings of several thousand dollars, as BNSF had required the City to fund multiple improvements within the BNSF right-of-way.

For this reason, the Second Amendment to the Agreement removes the BNSF crossings along Bay Marina Drive and updates the BNSF cost estimate in Exhibit D-2, reducing costs by narrowing the BNSF scope of work associated with those crossings.

FINANCIAL STATEMENT:

The estimated cost under the original agreement with BNSF was $1,750,412. The new estimated cost under the Second Amendment to the Agreement is $1,176,000, which is a reduction of $574,412.

RELATED CITY COUNCIL 2020-2025 STRATEGIC PLAN GOAL:

Transportation Choices and Infrastructure

ENVIRONMENTAL REVIEW:

The project is subject to CEQA and NEPA, and the required processes were completed prior to and during the design phase.

PUBLIC NOTIFICATION:

The Agenda Report was posted at least 72 hours before the Regular Meeting date and time, and 24 hours before a Special Meeting in accordance with the Ralph M. Brown Act.

ORDINANCE:

Not Applicable

EXHIBITS:

Exhibit A – Agreement Amendment
Exhibit B - Resolution

Contract Number: BF20253718-A-0002
Amendment Number: 2
1 of 5

SECOND AMENDMENT TO GRADE CROSSING CONSTRUCTION AND MAINTENANCE

AGREEMENT

THIS AMENDMENT AGREEMENT (hereinafter called “Amendment”) is dated _____________, by and between City of National City , a political subdivision of the State of California ("CITY"), and BNSF RAILWAY COMPANY, a Delaware Corporation ("RAILROAD").

WITNESSETH:

WHEREAS, Railroad, City and SANDAG are parties to an agreement dat ed 11/20/2023. This agreement, also referred to as Railroad's Contract Number BF20253718, together with any and all modification s, supplements and amendments thereto, being hereinafter referred to as the "Agreement"; and
WHEREAS, the parties hereto desire to amend certain provisions of the Agreement.

NOW, THEREFORE, in consideration of the mutual covenants exchanged herein and other good and valuable consideration, the adequacy of which is hereby acknowledged, Parties agree to amend the Agreement as follows. This Second A mendment will be upon the same terms and conditions provided in the Agreement, except as the same are hereby modified and supplemented.

Wherever there is any conflict between this Second A mendment and the Agreement, the provisions of this Second A mendment are paramount, and the Agreement will be construed accordingly:

1. CITY has removed the proposed improvements at BAY MARINA DRIVE, Milepost 273.16, designated by DOT# 026904T.

2. Term of the Amendment. This Second Amendment shall commence upon the date the last required signature is affixed hereto (Effective Date) and shall remain in full force and effect through the term of the Agreement, as amended, unless terminated at an earlier date pursuant to the provisions of the Agreement, or pursuant to federal or state statute, rule, or regulation.

3. Amendments. As of the Effective Date of this Second Amendment, the following portion of the Agreement is amended as follows:

A. ARTICLE I – SCOPE OF WORK of the Agreement is hereby deleted in its entirety and replace with:

Contract Number: BF20253718-A-0002
Amendment Number: 2
2 of 5
1) The term "Project" as used herein includes any and all work related to the r econstruction of the at -grade rail crossing surface by and installation of railroad crossing signals and activation equipment for the Bayshore Bikeway Segment 5 project at U.S. D.O.T No. 026900R, (hereinafter referred to as the "Crossing" ) by BNSF on behalf of the City , or particularly described in Exhibit A , including, but not limited to, any and all changes to telephone, telegraph, signal and electrical lines and appurtenances, temporary and permanent track work, fencing, grading, alterations to or new construction of drainage facilities, preliminary and construction engineering and contract preparation and the permanent removal, closure, vacation, and to perform the at -grade crossing known as Harbor Dr ive, Milepost 272.34, DOT No. 026900R, Line Segment 7600, San Diego Subdivision, California Division.

B ARTICLE III – CITY OBLIGATIONS

Article III section 5 of the Agreement is hereby deleted in its entirety and replace with:

5) The City must construct the Project as shown on the attached Exhibit A and do all work (“City’s Work”) provided for in the plans and specifications for the Project, except railroad work that will be performed by BNSF as outlined in the below . The City must furnish all labor, materials, tools and equipment for the performance of City ’s Work. The principal elements of City’s Work are as follows:

A. Design and Reconstruction/Construction of Harbor Dr;

Article III Section 11 of the Agreement is hereby deleted in its entirety and replaced with:

11) The City must require its contractor(s) to notify BNSF's Scheduling Agent ([email protected]) at least thirty (30) calendar days prior to requesting a BNSF flagman in accordance with the requirements of Exhibit C attached hereto. Additionally, the City must require its contractor(s) to notify BNSF’s Manager of Public Projects thirty (30) calendar days prior to commencing work on BNSF property or near BNSF railway tracks.

C EXHIBIT D which was attached to the original Agreement, is superseded, and replaced by Exhibit D-2, which is attached to this Amendment and incorporated into the original Agreement by this reference. All references to “ Exhibit D” in the original Agreement, and in any amendments thereto, are amended to read: “Exhibit D-2”.

Except as amended herein, the terms and conditions of the Agreement remain in effect.

Capitalized terms not defined herein have the same meaning as set forth in the Agreement.

Contract Number: BF20253718-A-0002
Amendment Number: 2
3 of 5

Remainder of page intentionally left blank. Signatures on the following page.

Contract Number: BF20253718-A-0002
Amendment Number: 2
4 of 5

IN WITNESS WHEREOF, RAILROAD and CITY have entered into this Second Amendment as of the date first written above.

BNSF RAILWAY COMPANY

By:

Printed Name:

Title:

National City

By:

Printed Name:

Title:

Approved as to form by:

City Attorney

By:____________________________
Print Name: _____________________
City Attorney

Date: ___________________________

Contract Number: BF20253718-A-0002
Amendment Number: 2
5 of 5

Exhibit D-2

BNSF COST ESTIMATE

National City Bayshore Bikeway
Segment 5

Harbor Dr
LS 7600 MP 272.34
San Diego Sub
DOT# 026900R

Administration $ 30,000
Inspection/Coordination/Cutover
Support
$ 100,000
Track Work $ 100,000
Signal Work $ 750,000
Contingency @ 20% $ 196,000
TOTAL $ 1,176,000

Note: This is an estimate only. BNSF will bill on an actual cost basis.

RESOLUTION NO. 2026 -

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY , CALIFORNIA,

AUTHORIZING THE CITY MANAGER TO EXECUTE THE SECOND AMENDMENT TO GRADE

CROSSING CONSTRUCTION AND MAINTENANCE AGREEMENT WITH BNSF RAILWAY COMPANY FOR THE BAYSHORE BIKEWAY SEGMENT 5 AND CONNECTIONS PROJECT, CIP NO. 19-24.

WHEREAS, the Bayshore Bikeway Segment 5 and Connections Project, CIP No. 19 -24 (“Project”), will add nearly 1.5 miles of protected bicycle facilities along Harbor Drive, McKinley Avenue, W. 23rd Street, and Marina Way in the City of National City (“City”), as well as a dedicated pedestrian and bicycle pathway on 19th Street under the I -5 overpass, providing safer connections for vulnerable roadway users between the Westside Neighborhood and the Bayshore Bikeway; and
WHEREAS, the bike lane alignment for the Project encroached on parcels owned or controlled by entities other than the City – San Diego Gas & Electric Company, BNSF Railway Company, the San Diego Metropolitan Transit System, and the San Diego Unified Port District – and required permission from and individual agreements with each entity; and WHEREAS, on June 20, 2023, the City Council adopted Resolution No. 2023 -80 approving agreements with BNSF Railway Company (“BNSF”) related to the Project, including a Grade Crossing Construction and Maintenance (the “Agreement”); and WHEREAS, the Agreement granted the City the right to install certain Project improvements on two BNSF properties located along Harbor Drive, no rth of Civic Center Drive, and along Bay Marina Drive, west of Cleveland Avenue; and WHEREAS, on September 29, 2025, City and BNSF entered into a First Amendment to the Agreement, extending the temporary non -exclusive license granted by BNSF to City for construction of the Project; and
WHEREAS, after completing further review of the Project scope to identify cost reductions, the City realign ed the bicycle facilities along Bay Marina Drive, result ing in remov al of the encroachment on BNSF property; and
WHEREAS, a second amendment to the Agreement is necessary to reflect the revised scope of the Agreement, removing the BNSF crossings along Bay Marina Drive and updating the BNSF cost estimate, reducing costs by narrowing the BNSF scope of work associated with those crossings.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS:

Section 1: That the City Council hereby authorize s the City Manager, or their designee, to execute the Second Amendment to Grade Crossing Construction and Maintenance Agreement with BNSF Railway Company for the Bayshore Bikeway Segment 5 and Connections project, CIP No.19-24, attached to the Agenda Report as Exhibit A, and authorizes the City

Manager, or their designee, to execute future amendments to the Grade Crossing Construction and Maintenance Agreement or related easement agreements with BNSF Railway Company.

Section 2: That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions.

PASSED and ADOPTED this 30th day of June, 2026.

Ron Morrison, Mayor

ATTEST:

Shelley Chapel, MMC, City Clerk

APPROVED AS TO FORM:

Heidi Skinner, City Attorney

AGENDA REPORT

Department: Engineering and Public Works
Prepared by: Luca Zappiello, Principal Civil Engineer Meeting Date: Tuesday, June 30, 2026
Approved by: Douglas J. Schulze, City Manager

SUBJECT:

Awarding a Contract to Borja Engineering & Construction, Inc. for Public Restroom Improvements at MLK Jr. Community Center, National City Public Library, Kimball Park, and Las Palmas Pool Building, CIP No. 26-09.

RECOMMENDATION:

Adopt a Resolution Entitled, Resolution of the City Council of the City of National City, California, 1) Awarding a Contract to Borja Engineering & Construction, Inc. in the Not-To-Exceed Amount of $485,961.21 for Public Restroom Improvements at the Martin Luther King Jr. Co mmunity Center, National City Public Library, Kimball Park, and Las Palmas Pool Building, CIP No. 26-09; 2) Authorizing a 15% Contingency in the Amount of $72,894.18 for any Unforeseen Changes; and 3) Authorizing the Mayor to Execute the Contract.”

BOARD/COMMISSION/COMMITTEE PRIOR ACTION:

Not Applicable.

EXPLANATION:

Community Development Block Grant (CDBG) funding was awarded to the City of National City to complete the following public restroom improvements:

 Martin Luther King Jr. Community Center – Full renovation of the existing men's and women's public restrooms.
 National City Public Library – Replacement of partitions in four public restrooms.  Kimball Park restrooms near the baseball field s – Replace outdoor sinks, exterior doors, locks, toilets, toilet paper holders, painting the interiors, updating signage, and installing new light fixtures inside and outside.
 Kimball Park restrooms near the playground – Replace outdoor sinks, exterior doors, locks, toilets, toilet paper holders, baby changing stations, painting the interiors, updating signage, and replacing light fixtures inside and out.
 Kimball Park restrooms along A Avenue – Replace toilets, toilet paper holders, sinks, baby changing stations, painting the interiors, updating signage, and installing new light fixtures inside and outside.
 Kimball Park restrooms near amphitheater – Replace plumbing fixtures (toilets, urinals, sinks), lighting fixtures, boilers, toilet paper holders, hand dryers, doors, drinking fountains, signage, painting the interiors, and replacing corroded plumbing with black ABS piping.

The following improvements will be completed using CIP funds for facility upgrades:

 Las Palmas Pool Building restroom – Complete renovation and ADA improvements for one restroom adjacent to the office area.

On April 16, 2026, a bid solicitation was posted on PlanetBids, which is a free public electronic bidding system for contractors. On April 22, 2026, and April 2 3, 2026, the bid solicitation was advertised in the local newspaper. On May 14, 2026, four (4) bids were received by the 2:00 p.m. deadline and Borja Engineering & Construction, Inc. was the apparent lowest bidder with a total bid amount of $485,961.21.

Upon review of all documents submitted, Borja Engineering & Construction, Inc .’s bid was deemed responsive and they are the lowest responsible bidder qualified to perform the work as described in the project specifications.

Staff recommends awarding a contrac t to Borja Engineering & Construction, Inc ., in the not -to- exceed amount of $485,961.21 and authorizing a 15% contingency in the amount of $72,894.18 to address any unforeseen conditions that may arise during construction.

Construction is estimated to be completed by Fall 2026.

FINANCIAL STATEMENT:

Funding for contract award and 15% contingency is available through prior City Council authorized appropriations to the following expenditure accounts:

Contract Award
301-10-18-18500-7898-7050301 (CDBG - Public Restroom Rehabilitation and Upgrades) - $429,310.63

399-10-18-18500-7598-1500100 (Facility Upgrades CIP) - $56,650.58

15% Contingency
399-10-18-18500-7598-1500100 (Facility Upgrades CIP) - $72,894.18

RELATED CITY COUNCIL 2020-2025 STRATEGIC PLAN GOAL:

Parks, Recreation and Library

ENVIRONMENTAL REVIEW:

This is a project under CEQA subject to a Categorical Exemption. Existing Facilities. CCR 15301(c).

PUBLIC NOTIFICATION:

The Agenda Report was posted at least 72 hours before the Regular Meeting date and time, and 24 hours before a Special Meeting in accordance with the Ralph M. Brown Act.

ORDINANCE:

Not Applicable

EXHIBITS:

Exhibit A - Bid Opening Summary
Exhibit B - Three Lowest Bidders Summary
Exhibit C - Owner-Contractor Agreement
Exhibit D - Resolution

BID OPENING SUMMARY

NAME: Improvements to Kimball Park, Las Palmas Park, The Library and MLK Restrooms
CIP NO: 26-09
DATE: May 14, 2026
TIME: 2:00 P.M.

ESTIMATE: $495,000
PROJECT ENGINEER: Luca Zappiello

NO. BIDDER’S NAME BASE BID AMOUNT

1 Borja Engineering & Construction, Inc
16766 Bernardo Center Dr Ste 214
San Diego, California 92128
$485,961.21

2 HSCC, Inc.
9411 Bond Avenue
Lakeside, California 92021
$660,000.00

3 GQ Builders, Inc.

PO Box 1488 Rancho
Santa Fe, California 92067
$721,879.00

4 YBS Construction Engineering
1205 S. 43rd St Suite 150
San Diego, California 92113
$772,000.00

Nu
m
U
nit
Quanti
ty Description Unit Price Line Total Unit Price Line Total Unit Price Line Total 1 LS 1 Martin Luther King Jr. Community Center - Bathroom Renovations$81,363 $81,363 $104,384 $104,384 $221,000 $221,000 2 LS 1 Remove Existing Doors and Hardware and Furnish and Install New Hollow Metal Doors, Exit Devices, Electric Strikes, and Associated Electrical Work at Six (6) Locations$3,181 $3,181 $120,616 $120,616 $50,400 $50,400 3 EA 6 Remove and Replace Toilets $1,625 $9,747 $0 $0 $4,000 $24,000 4 EA 6 Remove and Replace Toilet Paper Dispensers$1,625 $9,747 $0 $0 $590 $3,540 5 LS 1 Remove and Replace Grab Bars $6,514 $6,514 $0 $0 $886 $886 6 EA 1 Remove and Replace Baby Changing Station$6,514 $6,514 $0 $0 $5,888 $5,888 7 LS 1 Remove and Replace Interior and Exterior Lighting$4,264 $4,264 $0 $0 $5,670 $5,670 8 LS 1 Remove and Replace Corroded Ball Valve$6,514 $6,514 $0 $0 $2,029 $2,029 9 LS 1 Remove and Replace Dual Station Drinking Fountain with Bottle Filler$6,514 $6,514 $0 $0 $11,056 $11,056 10 EA 2 Remove and Replace Sink/Faucet $3,257 $6,514 $0 $0 $6,415 $12,830 11 EA 1 Remove and Replace Soap Dispenser $6,514 $6,514 $0 $0 $828 $828 12 EA 1 Remove and Replace Hand Dryer $6,514 $6,514 $0 $0 $3,065 $3,065 13 LS 1 Paint and Apply Graffiti Coating the Interior of the 6 Restroom Stalls$9,165 $9,165 $0 $0 $19,308 $19,308 14 LS 1 Remove Existing Restroom Signage and Install New Restroom Signage$6,514 $6,514 $0 $0 $2,906 $2,906 15 LS 1 Las Palmas Park Pool Restroom - Full Renovation$33,845 $33,845 $50,000 $50,000 $72,582 $72,582 16 LS 1 Men's Restroom Rehabilitation $9,165 $9,165 $0 $0 $8,250 $8,250 17 LS 1 Women's Restroom Rehabilitation $9,165 $9,165 $0 $0 $8,250 $8,250 18 LS 1 Remove and Replace Restroom Partitions within Existing Four (4) Restrooms$4,887 $4,887 $70,000 $70,000 $21,227 $21,227 19 LS 1 Remove Existing Doors and Hardware and Furnish and Install New Hollow Metal Doors, Exit Devices, Electric Strikes, and Associated Electrical Work at Two (2) Locations$3,181 $3,181 $110,000 $110,000 $3,971 $3,971 20 EA 2 Remove and Replace Toilets $1,625 $3,249 $0 $0 $8,121 $16,242 21 EA 2 Remove and Replace Toilet Paper Dispensers$1,625 $3,249 $0 $0 $532 $1,064 $89,082.00
Borja Engineering &
Construction, Inc
16766 Bernardo
Center Dr Ste 214 San
Improvements to Kimball Park, Las Palmas Park, The Library and MLK Restrooms (Non-PLA) (CIP No. 26-09) Three Lowest Bidders Summary
Bid Opening: May 14, 2026 2:00 PM
Base Bid (Kimball Park General Restrooms)
Subtotal $88,220.00 $120,616.00 $142,406.00
Base Bid (Las Palmas Park Pool Restrooms)
Subtotal $52,175.46 $50,000.00
Base Bid (MLK Jr. Restrooms)
Engineering & Public Works Department
HSCC, Inc. 9411 Bond
Avenue Lakeside,
California 92021
GQ Builders, Inc. PO
Box 1488 Rancho
Santa Fe, California
92067
Subtotal $81,363.38 $104,384.00 $221,000.00
Base Bid (National City Library Restroom Partitions)
Subtotal $4,887.22 $70,000.00 $21,227.00
Additive Bid (Kimball Park Playground Restrooms)

Nu
m
U
nit
Quanti
ty Description Unit Price Line Total Unit Price Line Total Unit Price Line Total Borja Engineering &
Construction, Inc
16766 Bernardo
Center Dr Ste 214 San
HSCC, Inc. 9411 Bond
Avenue Lakeside,
California 92021
GQ Builders, Inc. PO
Box 1488 Rancho
Santa Fe, California
92067
22 LS 1 Remove and Replace Grab Bars $6,514 $6,514 $0 $0 $880 $880 23 EA 1 Remove and Replace Baby Changing Station$6,514 $6,514 $0 $0 $5,842 $5,842 24 LS 1 Remove and Replace Interior and Exterior Lighting$3,520 $3,520 $0 $0 $2,485 $2,485 25 LS 1 Remove and Replace Dual Station Drinking Fountain with Bottle Filler$6,514 $6,514 $0 $0 $7,958 $7,958 26 EA 1 Remove and Replace Sink/Faucet $6,514 $6,514 $0 $0 $10,962 $10,962 27 EA 1 Remove and Replace Soap Dispenser $3,257 $3,257 $0 $0 $345 $345 28 EA 1 Remove and Replace Hand Dryer $6,514 $6,514 $0 $0 $5,998 $5,998 29 EA 2 Remove and Replace Water Heaters $6,514 $13,029 $0 $0 $2,900 $5,800 30 LS 1 Paint and Apply Graffiti Coating the Interior of the 2 Restroom Stalls$9,165 $9,165 $0 $0 $2,681 $2,681 31 LS 1 Remove Existing Restroom Signage and Install New Restroom Signage$6,514 $6,514 $0 $0 $968 $968 32 EA 1 Remove and Replace Door for Plumbing Chase/Storage Room$2,437 $2,437 $100,000 $100,000 $15,963 $15,963 33 EA 4 Remove and Replace Toilets $1,625 $6,498 $0 $0 $3,842 $15,368 34 EA 4 Remove and Replace Toilet Paper Dispensers$1,625 $6,498 $0 $0 $702 $2,808 35 LS 1 Remove and Replace Grab Bars $6,514 $6,514 $0 $0 $880 $880 36 EA 2 Remove and Replace Urinals $6,514 $13,029 $0 $0 $7,180 $14,360 37 EA 1 Remove and Replace Baby Changing Station$6,514 $6,514 $0 $0 $4,970 $4,970 38 LS 1 Remove and Replace Interior and Exterior Lighting$1,895 $1,895 $0 $0 $4,615 $4,615 39 EA 1 Remove and Replace Drinking Fountain$1,625 $1,625 $0 $0 $7,958 $7,958 40 EA 2 Remove and Replace Sink/Faucet $1,625 $3,249 $0 $0 $5,361 $10,722 41 EA 2 Remove and Replace Hand Dryer $6,514 $13,029 $0 $0 $2,992 $5,984 42 LS 1 Remove and Replace Corroded Plumbing within Plumbing Chase$6,514 $6,514 $0 $0 $4,926 $4,926 43 LS 1 Paint and Apply Graffiti Coating the Interior of the Mens and Womens Restrooms$9,165 $9,165 $0 $0 $2,981 $2,981 44 LS 1 Remove Existing Restroom Signage and Install New Restroom Signage$6,514 $6,514 $0 $0 $968 $968 45 EA 3 Remove and Replace Doors $2,437 $7,311 $35,000 $105,000 $3,991 $11,973 46 EA 4 Remove and Replace Toilets $1,625 $6,498 $0 $0 $4,860 $19,440 47 EA 4 Remove and Replace Toilet Paper Dispensers$1,625 $6,498 $0 $0 $702 $2,808 48 LS 1 Remove and Replace Grab Bars $6,514 $6,514 $0 $0 $1,770 $1,770 49 EA 1 Remove and Replace Urinal $6,514 $6,514 $0 $0 $7,071 $7,071 50 EA 1 Remove and Replace Baby Changing Station$6,514 $6,514 $0 $0 $5,842 $5,842 51 LS 1 Remove and Replace Interior and Exterior Lighting$3,926 $3,926 $0 $0 $5,147 $5,147 52 EA 1 Remove and Replace Drinking Fountain$1,625 $1,625 $0 $0 $4,941 $4,941 53 EA 2 Remove and Replace Sink/Faucet $1,625 $3,249 $0 $0 $5,346 $10,692 54 EA 2 Remove and Replace Hand Dryer $6,514 $13,029 $0 $0 $1,777 $3,554 55 EA 2 Remove and Replace Water Heaters $6,514 $13,029 $0 $0 $2,633 $5,266 56 LS 1 Paint and Apply Graffiti Coating the Interior of the Mens and Womens Restrooms$9,165 $9,165 $0 $0 $1,153 $1,153 57 LS 1 Remove Existing Restroom Signage and Install New Restroom Signage$6,514 $6,514 $0 $0 $943 $943 58 EA 1 Remove and Replace Window in Storage Room$1,625 $1,625 $0 $0 $1,937 $1,937 Subtotal $77,736.07 $110,000.00 $65,196.00
Additive Bid (Kimball Park Restrooms along A Avenue)
Subtotal $83,481.71 $100,000.00 $92,503.00
Additive Bid (Kimball Park Restrooms within Amphitheater)

Nu
m
U
nit
Quanti
ty Description Unit Price Line Total Unit Price Line Total Unit Price Line Total Borja Engineering &
Construction, Inc
16766 Bernardo
Center Dr Ste 214 San
HSCC, Inc. 9411 Bond
Avenue Lakeside,
California 92021
GQ Builders, Inc. PO
Box 1488 Rancho
Santa Fe, California
92067
59 LF 8 Install Protective Railing per SDM-115$761 $6,087 $0 $0 $991 $7,928 Subtotal $485,961.21 $660,000.00 $721,879.00
Subtotal $98,097.37 $105,000.00 $90,465.00

OWNER - CONTRACTOR AGREEMENT

Improvements to Kimball Park, Las Palmas Park, The Library and MLK Restrooms CIP No. 26-09

This Owner-Contractor Agreement (“Agreement”) is made by and between the City of National City, 1243 National City Boulevard National City, California 91950 and Borja Engineering & Construction, Inc (“Contractor”) 16766 Bernardo Center Dr Ste 214 San Diego, California 92128 United States , on the _________ day of ______________ 2026, for the construction of the above referenced Project.

In consideration of the mutual covenants and agreements set forth herein, the Owner and Contractor have mutually agreed as follows:

1. CONSTRUCTION

The Contractor agrees to do all the w ork and furnish all the labor, services, materials and equipment necessary to construct and complete the Project in a turn- key manner in accordance with this Agreement and all documents and plans referenced in Exhibit “A”, (hereinafter “Contract Documents ”), in compliance with all relevant Federal, State of California, County of San Diego and City of National City codes and regulations, and to the satisfaction of the Owner.

2. CONTRACT PRICE

Owner hereby agrees to pay and the Contractor agrees to accept as full compensation for constructing the project in accordance with these Contract Documents in an amount not to exceed the contract price as set forth in Exhibit “B” attached hereto and incorporated herein by reference. Payments to the Contractor shall be made in the manner described in the Special Provisions.

3. TIME FOR PERFORMANCE

Time is of the essence for this Agreement and the Contractor shall construct the project in every detail to a complete and turn-key fashion to the satisfaction of the Owner within the specified duration set forth in the Special Provisions.

4. NON-DISCRIMINATION

In the performance of this Agreement, the Contractor shall not refuse or fail to hire or employ any qualified person, or bar or discharge from employme nt any person, or discriminate against any person, with respect to such person's compensation, terms, conditions or privileges of employment because of such person's race, religious status, sex or age.

5. AUTHORIZED OWNER REPRESENTATIVES

On behalf of the Owner , the Project Manager designated at the pre- construction meeting shall be the Owner’s authorized representative in the interpretation and enforcement of all Work performed in connection with this Agreement.

6. WORKERS' COMPENSATION INSURANCE

a) By my signature hereunder, as Contractor, I certify that I am aware of the provisions of Section 3700 of the Labor Code, which requires every employer to be insured against liability for Workers’ Compensation or to undertake self-insurance in accordance with the provisions of that Code, and I will comply with such provisions before commencing the performance of the Work of this Agreement.

b) The Contractor shall require each subcontractor to comply with the requirements of Se ction 3700 of the Labor Code. Before commencing any Work, the Contractor shall cause each subcontractor to execute the following certification:

"I am aware of the provisions of Section 3700 of the Labor Code, which requires every employer to be insured a gainst liability for worker's compensation or to undertake self-insurance in accordance with the provisions of that Code, and I will comply with such provisions before commencing the performance of the Work of this Agreement."

7. ENTIRE AGREEMENT; CONFLICT

The Contract Documents comprise the entire agreement between the Owner and the Contractor with respect to the Work. In the event of conflict between the terms of this Agreement and the bid of the Contractor, then this Agreement shall control and nothing herein shall be considered as an acceptance of the terms of the bid conflicting herewith.

8. MAINTENANCE OF AGREEMENT DOCUMENTATION

Contractor shall maintain all books, documents, papers, employee time sheets, accounting records and other evidence pertaining to costs incurred and shall make such materials available at its office at all reasonable times during the term of this Agreement and for three (3) years from the date of final payment under this Agreement, for inspection by Owner and copies thereof shall be furnished to Owner if requested.

9. INDEPENDENT CONTRACTOR

At all times during the term of this Agreement, Contractor shall be an independent contractor and shall not be an employee, agent, partner or joint venturer of the Owner. Owner shall have the right to control Contractor insofar as the results of Contractor's services rendered

pursuant to this Agreement; however, Owner shall not have the right to control the means by which Contractor accomplishes such services.

10. LICENSES AND PERMITS

Contractor represents and declares to Owner that it has all licenses, permits, qualifications and approvals of whatever nature which are legally required to practice its profession.

Contractor represents and warrants to Owner that Contractor shall, at its sole cost and expense, keep in effect at all times during the term of this Agreement, any licenses, permits, qualifications or approvals which are legally required for Contractor to practice its profession.

11. GOVERNING LAW, VENUE

This Agreement and the Contract Documents shall be construed under and in accordance with the laws of the State of California, and the appropriate venue for any action or proceeding arising from this Agreement and/or the Contract Documents shall be had in the Superior Court of San Diego, Central Branch.

12. COUNTERPARTS

This Agreement may be executed in any number of counterparts, each of which shall for all purposes be deemed to be an original.

13. FALSE CLAIMS

Contractor acknowledges that if a false cl aim is submitted to the Owner , it may be considered fraud and Contractor may be subject to criminal prosecution. Contractor acknowledges that the False Claims Act, California Government Code sections 12650, et seq., provides for civil penalties where a person knowingly submits a false claim to a public entity. These provisions include within their scope false claims made with deliberate ignorance of the false information or in reckless disregard of the truth or falsity of the information. In the event the Owner seeks to recover penalties pursuant to the False Claims Act, it is entitled to recover its litigation costs, including attorneys’ fees. Contractor hereby acknowledges that the filing of a false claim may the Contractor to an administrative debarment proceeding wherein Contractor may be prevented from further bidding on public contracts for a period of up to five (5) years.

I have read and understood all of the provisions of this Section 13, above:

(Initial) (Initial)

14. AGREEMENT MODIFICATION

This Agreement and the Contract Documents may not be modified orally or in any manner other than by an amendment in writing and signed by the Owner and the Contractor.

IN WITNESS WHEREOF this Agreement is executed as of the date first written above.

Owner: Contractor:

Borja Engineering & Construction,
Inc.

Ron Morrison,
Mayor, City of National City (Owner/Officer signature)

Approved as to form:

Print name and title

Heidi Skinner,
Interim City Attorney, City of National City

(Second officer signature if a corporation)

Print name and title

Contractor’s City Business License No.

State Contractor’s License No. and Class

Business street address

City, State and Zip Code

EXHIBIT A

CONTRACT DOCUMENTS

Owner/Contractor Agreement

Bid Schedule

Addenda

Plans

Special Provisions (Specifications)

San Diego County Regional Standard Drawings

City of National City Standard Drawings

Standard Specifications for Public Works Construction and Regional Supplements (Greenbook)

State Standard Specifications

State Standard Plans

California Building, Mechanical, Plumbing and Electrical Codes

Permits issued by jurisdictional regulatory agencies

Electric, gas, and communications companies specifications and standards

Sweetwater Authority specifications and standards

Specifications, standards and requirements of MTS, BNSF, SANDAG, Port of San Diego and all other agencies that may be adjacent and/or affected by the project.

EXHIBIT B

City of National City
Improvements to Kimball Park, Las Palmas Park, The Library and MLK Restrooms (Non-PLA) (CIP No. 26-09), bidding on 05/14/2026 2:00 PM (PDT)

Printed 06/08/2026
PlanetBids

City of National City
Improvements to Kimball Park, Las Palmas Park, The Library and MLK Restrooms (Non-PLA) (CIP No. 26-09), bidding on 05/14/2026 2:00 PM (PDT)

Printed 06/08/2026
PlanetBids

City of National City
Improvements to Kimball Park, Las Palmas Park, The Library and MLK Restrooms (Non-PLA) (CIP No. 26-09), bidding on 05/14/2026 2:00 PM (PDT)

Printed 06/08/2026
PlanetBids

CORPORATE CERTIFICATE

I, ___________________________________ certify that I am the Secretary of the Corporation named as Contractor in the foregoing Contract; that _____________________________________, who signed said contract on behalf of the Contractor, was then ______________________________________________ of said Corporation; that said contract was duly signed for and in behalf of said Corporation by authority of its governing body and is within the scope of its corporate powers.

I, ___________________________________ certify that I am the Secretary of the Corporation named as Contractor in the foregoing Contract; that _____________________________________, who signed said contract on behalf of the Contractor, was then _______________________________________________ of said Corporation; that said contract was duly signed for and in behalf of said Corporation by authority of its governing body and is within the scope of its corporate powers.

Corporate Seal:

PARTNERSHIP CERTIFICATE

STATE OF ______________________________)
) ss
COUNTY OF _____________________________)

On this __________ day of ___________, 20____, before me, the undersigned, a Notary Public in and for said County and State, personally appeared:

_____________________________________________________________

____________________________ (Notary Seal)

known to me to be _________________________________of the partners of the partnership that executed the within instrument, and acknowledged to me that such partnership executed the same.

Signature: _______________________________________________________________

Name (Type or Print): _____________________________________________________ (Notary Public in and for said County and State)

My Commission expires: __________________________________________________

PERFORMANCE BOND

WHEREAS, the City Manager of the City of National City, on the ____ day of ___________, 20____, has awarded to Borja Engineering & Construction, Inc ., hereinafter designated as the "Principal", the Improvements to Kimball Park, Las Palmas Park, The Library and MLK Restrooms CIP No. 26-09.

WHEREAS, said Principal is required under the terms of said contract to furnish a bond for the faithful performance of said contract.

NOW, THEREFORE, we, the Principal and
___________________________________________ as surety, are held and firmly bound unto the City of National City, hereinafter called the "City", in the penal sum of (Four Hundred Eighty-Five Thousand Nine Hundred Sixty-One and Twenty-One Hundredths ($485,961.21) dollars lawful money of the United States, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, executors, administrators and successors, jointly and severally, firmly by these presents.

THE CONDITION OF THIS OBLIGATION IS SUCH THAT if the above bounden Principal, his/her or its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and agreements in the said contract any alteration thereof made as therein provides, on his or their part, to be kept and performed at the time and in the amount therein specified, and in all respects according to their true intent and meaning, and shall indemnify and save harmless the City of National City, its officers, agents, employees, and volunteers as therein stipulated, then this obligation shall become null and void; otherwise it shall be and remain in full force and virtue.

And the said Surety, fo r value received, hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the contract or to the work to be performed herein or the specifications accompanying the same shall in any wise affect its obligations on this bond, and it does hereby waive notice of any such

change, extension of time, alteration or additions to the terms of the contract or to the work or to the specifications.

In the event suit is brought upon this bond by the City and judgment is rec overed, the surety shall pay all costs incurred by the City in such suit, including a reasonable attorney's fee to be fixed by the Court.

IN WITNESS WHEREOF three identical counterparts of this instrument, each of which shall for all purposes be deemed an original thereof, have been duly executed by the

Principal and Surety above named, on the ________ day of ____________, 20____.

____________________________(SEAL)

____________________________(SEAL)

____________________________(SEAL)

____________________________(SEAL)

____________________________(SEAL)

____________________________(SEAL)

Surety Principal

PERFORMANCE BOND

ATTORNEY-IN-FACT ACKNOWLEDGEMENT OF SURETY

STATE OF ______________________________ )
) ss
COUNTY OF _____________________________)

On this______ day of ______________, 20____ , before me, the undersigned, a Notary Public in and for said County and State, personally appeared ____________________________________________ known to me to be the person whose name is subscribed to the within instrument as the attorney -in-fact of the ____________________________________________, the corporation named as Surety in said instrument, and acknowledged to me that he subsc ribed the name of said corporation thereto as Surety, and his own name as attorney-in-fact.

NOTE: Signature of those executing for
Surety must be properly
acknowledged.

NOTE: The Attorney -in-fact must attach a
certified copy of the Power of
Attorney.

Signature: _______________________________________________________________

Name (Type or Print): _____________________________________________________ Notary Public in and for said County and State

My Commission expires: __________________________________________________

PAYMENT BOND

WHEREAS, the City Manager of the City of National City, on the ____ day of ____________________, 20____ has awarded Borja Engineering & Construction, Inc., hereinafter designated as the "Principal”, the Improvements to Kimball Park, Las Palmas Park, The Library and MLK Restrooms CIP No. 26-09

WHEREAS, said Principal is required by Chapter 5 (commencing at Section 3225) and Chapter 7 (commencing at Section 3247), Title 15, Part 4, Division 3 of the California Civil Code to furnish a bond in connection with said contract;

NOW, THEREFORE, we, the Principal and __________________________________ as surety, are held and firmly bound unto the City of National City, hereinafter called the "City", in the penal sum of ( Four Hundred Eighty-Five Thousand Nine Hundred Sixty-One and Twenty-One Hundredths ($485,961.21) dollars lawful money of the United States, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, executors, administrators and successors, jointly and severally, firmly by these presents.

THE CONDITION OF THIS OBLIGATION IS SUCH that if said Principal, his/her or its subcontractors, heirs, executors, ad ministrators, successors, or assigns, shall fail to pay any of the persons named in Section 3181 of the California Civil Code, or amounts due under the Unemployment Insurance Code with respect to work or labor performed by any such claimant, or for any amounts required to be deducted, withheld, and paid over to the Franchise Tax Board from the wages of employees of the Contractor and his subcontractors pursuant to Section 18806 of the Revenue and Taxation Code, with respect to such work and labor the Surety will pay for the same in an amount not exceeding the sum hereinafter specified, and also, in case suit is brought upon this bond, a reasonable attorney's fee, to be fixed by the Court.

This Bond shall inure to the benefit of any of the persons named in Section 3181 of the California Civil Code, so as to give a right of action to such persons or their assigns in any suit brought upon this bond.

It is further stipulated and agreed that the Surety on this bond shall not be exonerated or released from the obligation of this bond by any change, extension of time for performance, addition, alteration or modification in, to, or of any contract, plans, specifications, or agreement pertaining or relating to any scheme or work of improvement hereinabove described or pertaining or relating to the furnishing of labor, materials, or equipment therefore, not by any change or modification of any terms of payment or extension of the time for any payment pertaining or relating to any scheme or work of improvement hereina bove described, nor by any rescission or attempted rescission of the contract, agreement or bond, nor by any conditions precedent or subsequent in the bond attempting to limit the right of recovery of claimants otherwise entitled to recover under any such contract or agreement or under the bond, nor by any fraud practiced by any person other than the claimant seeking to recover on the bond and that this bond be construed most strongly against the Surety and in favor of all persons for whose benefit such bond is given, and under no circumstances shall Surety be released from liability to those for whose benefit such bond has been given, by reason of any breach of contract between the owner of Public Entity and original contractor or on the part of any obliges named in such bond, but the sole conditions of recovery shall be that claimant is a person described in Section 3110 or 3112 of the California Civil Code, and has not been paid the full amount of his claim and that Surety does hereby waive notice of any such change, extension of time, addition, alteration or modification herein mentioned.

IN WITNESS WHEREOF three identical counterparts of this instrument, each of which shall for all purposes be deemed an original thereof, have been duly executed by the Principal and Surety above named, on the ________ day of _____________________, 20____.

____________________________(SEAL)

____________________________(SEAL)

____________________________(SEAL)

____________________________(SEAL)

____________________________(SEAL)

____________________________(SEAL)

Surety Principal

ATTORNEY-IN-FACT ACKNOWLEDGEMENT OF SURETY

STATE OF ______________________________ )
) ss
COUNTY OF _____________________________)

On this day _______ of __________________, 20____, before me, the undersigned, a Notary Public in and for said County and State, personally appeared ____________________________________________ known to me to be the person whose name is subscribed to the within instrument as the attorney -in-fact of the ____________________________________________, the corporation named as Surety in said instrument, and acknowledged to me that he subscribed the name of said corporation thereto as Surety, and his own name as attorney-in-fact.

NOTE: Signature of those executing for
Surety must be properly
acknowledged.

NOTE: The Attorney -in-fact must attach a
certified copy of the Power of
Attorney.

Signature:

Name (Type or Print):
(Notary Public in and for said County and State)

My Commission expires:

ATTACH ALL BONDS

RESOLUTION NO. 2026 -

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA, 1) AWARDING A CONTRACT TO BORJA ENGINEERING & CONSTRUCTION, INC. IN THE NOT-TO-EXCEED AMOUNT OF $485,961.21 FOR PUBLIC RESTROOM IMPROVEMENTS AT THE MARTIN LUTHER KING JR. COMMUNITY CENTER, NATIONAL CITY PUBLIC LIBRARY, KIMBALL PARK, AND LAS PALMAS POOL BUILDING, CIP NO. 26-09; 2) AUTHORIZING A 15% CONTINGENCY IN THE AMOUNT OF $72,894.18 FOR ANY UNFORESEEN CHANGES; AND 3) AUTHORIZING THE MAYOR TO EXECUTE THE CONTRACT.

WHEREAS, Community Development Block Grant (CDBG) funding was awarded to the City of National City to complete public restroom improvements at the Martin Luther King Jr.

Community Center, National City Public Library and Kimball Park, and the project was expanded to include upgrades to one restroom at the Las Palmas Pool Building using Capital Improvement Program funds for facility upgrades, all under CIP No. 26-09 (the “Project”); and WHEREAS, on April 16, 2026 , the bid solicitation for the Project was posted on PlanetBids, a free public electronic bidding system for contractors; and WHEREAS, on April 22nd and April 23 rd, 2026, the bid solicitation was advertised in the local newspaper; and
WHEREAS, on May 14, 2026, four (4) bids were received by the 2:00 p.m. deadline; and WHEREAS, upon review of all documents submitted, Borja Engineering & Construction, Inc.’s bid in the total bid amount of $485,961.21 was deemed responsive and they are the lowest responsible bidder qualified to perform the work as described in the Project specifications; and WHEREAS, City staff recommends 1) awarding a contract to Borja Engineering & Construction, Inc. in the not-to-exceed amount of $485,961.21 for public restroom improvements at the Martin Luther King Jr. Community Center, National City Public Library, Kimball Park, and Las Palmas Pool Building, CIP No. 26 -09; 2) authorizing a 15% contingency in the amount of $72,894.18 for any unforeseen changes; and 3) authorizing the Mayor to execute the contract.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS:

Section 1: That the City Council hereby authorizes the Mayor to execute the contract with Borja Engineering & Construction, Inc. in the not-to-exceed amount of $485,961.21 for public restroom improvements at the Martin Luther King Jr. Community Center, National City Public Library, Kimball Park, and Las Palmas Pool Building, CIP No. 26-09.

Section 2: That the City Council hereby authorizes a 15% contingency in the amount of $72,894.18 for any unforeseen changes.

Section 3: That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions.

PASSED and ADOPTED this 30th day of June, 2026.

Ron Morrison, Mayor

ATTEST:

Shelley Chapel, MMC, City Clerk

APPROVED AS TO FORM:

Heidi Skinner, City Attorney

AGENDA REPORT

Department: Engineering and Public Works
Prepared by: Ricardo Rodriguez, Associate Engineer-Civil Meeting Date: Tuesday, June 30, 2026
Approved by: Douglas J. Schulze, City Manager

SUBJECT:

Awarding a Contract to Palm Engineering Construction Company, Inc. for the 24th Street Sewer Improvements Project, CIP No. 25-21.

RECOMMENDATION:

Adopt a Resolution Entitled, “Resolution of the City Council of the City of National City, California, 1) Awarding a Contract to Palm Engineering Construction Company, Inc. in the Not-To-Exceed Amount of $3,983,370.03 for the 24th Street Sewer Improvements Project, CIP No. 2 5-21; 2) Authorizing a 15% Contingency in the Amount of $597,506 for any Unforeseen Changes; and 3) Authorizing the Mayor to Execute the Contract.”

BOARD/COMMISSION/COMMITTEE PRIOR ACTION:

Not Applicable.

EXPLANATION:

In anticipation of a major grant-funded capital project that will include street improvements on East 24th Street, staff pre-emptively evaluated the capacity and condition of the sewer main .

Future development and densification, per City planning documents, was also considered in the evaluation of the sewer main in E 24 th Street. The result of th at evaluation indicated that segments of the sewer were in need of replacement or upsizing. Performing the scope of work of this project in advance of the other would result in advantageous sequencing such that the paving could be completed once and not disrupted by the next project.

As a result of the evaluation and planning of future street improvements, the East 24th Street Sewer Improvements project, CIP 25-21, was designed and prioritized. The project will remove and replace the existing 6, 8, and 10-inch VCP sewer main with 8, 10, and 12 -inch PVC sewer main, respectively, along East 24th Street from National City Boulevard to N Ave. The project scope includes the removal and replacement of existing manholes , lateral connections , and installation of backwater valves.

On April 16, 2026, the bid solicitation was posted on PlanetBids, a free public electronic bidding system for contractors. On April 21, 2026 and April 27, 2026, the bid solicitation was advertised in the local newspaper. On May 1 4, 2026, six (6) bids were received by the 2:00 p.m. deadline and Palm Engineering Construction Company , Inc. was the apparent lowest bidder with a total bid amount of $3,983,370.03.

Upon review of all documents submitted, Palm Engineering Construction Company, Inc.’s bid was deemed responsive and they are the lowest responsible bidder qualified to perform the work as described in the project specifications.

Staff recommends awarding a contract to Palm Engineering Construction Company, Inc. in the not-to-exceed amount of $ 3,983,370.03 and authorizing a 15% contingency in the amount of $597,506 to address any unforeseen conditions that may arise.

Construction will begin in late Summer 2026 and is expected to be completed in Spring 2027.

FINANCIAL STATEMENT:

Funding is available in the Sewer Fund for this contract. Expenditures for this project will be recorded as follows:

Contract Award - $3,983,370.03
Expenditure Account No. 125-10-18-18500-7598-2024125 SEWER UPSIZING

15% Contingency - $597,506
Expenditure Account No. 125-10-18-18500-7598-2024125 SEWER UPSIZING

RELATED CITY COUNCIL 2020-2025 STRATEGIC PLAN GOAL:

Transportation Choices and Infrastructure

ENVIRONMENTAL REVIEW:

This is a project under CEQA subject to a Categorical Exemption. Existing Facilities. CCR 15301(c).

PUBLIC NOTIFICATION:

The Agenda Report was posted at least 72 hours before the Regular Meeting date and time, and 24 hours before a Special Meeting in accordance with the Ralph M. Brown Act.

ORDINANCE:

Not Applicable

EXHIBITS:

Exhibit A – Bid Opening Summary
Exhibit B – Summary of Bid Items
Exhibit C – Owner-Contractor Agreement
Exhibit D – Resolution

Exhibit A

BID OPENING SUMMARY

NAME: 24th Street Sewer Improvements
CIP NO: 25-21
DATE: May 14, 2026
TIME: 2:00 P.M.

ESTIMATE: $5,400,000
PROJECT ENGINEER: Ricardo Rodriguez

NO. BIDDER’S NAME BID AMOUNT BID SECURITY
- BOND
1 Palm Engineering Construction Co., Inc.
7330 Opportunity Road, Suite A
San Diego, CA 92111
$3,983,370.03 Bond
2 Burtech Pipeline, Inc.
1325 Pipeline Drive
Vista, CA 92081
$4,974,935.30 Bond
3 Dick Miller, Inc.
930 Boardwalk, Suite H
San Marcos, CA 92078
$5,277,777.77 Bond
4 SRK Engineering, Inc.
2615 Auto Park Way
Escondido, CA 92029
$5,390,856.94 Bond
5 Griffith Company
3050 E. Birch Street
Brea, CA 92821
$5,737,439.00 Bond
6 Rove Engineering
398 E Aurora Drive
El Centro, CA 92243
$5,968,784.20 Bond

Exhibit B

SUMMARY OF BID ITEMS

NAME: 24th Street Sewer Improvements
CIP NO: 25-21
DATE: May 14, 2026
TIME: 2:00 P.M.

ESTIMATE: $5,400,000
PROJECT ENGINEER: Ricardo Rodriguez

Item Description Unit Qty Unit Price Line Total Unit Price Line Total Unit Price Line Total 1 Mobilization/Demobilization LS 1 $133,000.00 $133,000.00 $200,000.00 $200,000.00 $166,965.23 $166,965.23 2 Water Pollution Control LS 1 $23,000.00 $23,000.00 $40,000.00 $40,000.00 $104,000.00 $104,000.00 3 Trench Shoring - Mainline and Manholes LS 1 $55,000.00 $55,000.00 $80,000.00 $80,000.00 $209,000.00 $209,000.00 4 Trench Shoring - Laterals EA 54 $135.00 $7,290.00 $555.00 $29,970.00 $518.00 $27,972.00 5 Dewatering Plan LS 1 $3,333.00 $3,333.00 $500.00 $500.00 $5,000.00 $5,000.00 6 Dewatering Mobilization/Demobilization LS 1 $5,333.00 $5,333.00 $500.00 $500.00 $13,000.00 $13,000.00 7 Dewatering and Treatment LS 1 $6,333.00 $6,333.00 $500.00 $500.00 $144,000.00 $144,000.00 8 Traffic Control LS 1 $73,000.00 $73,000.00 $250,000.00 $250,000.00 $230,000.00 $230,000.00 9 Utility Potholing and Coordination LS 1 $63,000.00 $63,000.00 $85,000.00 $85,000.00 $175,950.00 $175,950.00 10 Temporary Sewer Bypass Plan LS 1 $61,333.00 $61,333.00 $80,000.00 $80,000.00 $370,533.00 $370,533.00 11 Remove Existing 10" Sewer Main and Replace with 12" SDR35 PVC Sewer Main by Open Trench LF 60 $800.00 $48,000.00 $1,340.00 $80,400.00 $286.00 $17,160.00 12 Remove Existing 8" Sewer Main and Replace with 10" SDR35 PVC Sewer Main by Open Trench LF 2210 $283.00 $625,430.00 $375.00 $828,750.00 $258.00 $570,180.00 13 Remove Existing 6" Sewer Main and Replace with 8" SDR35 PVC Sewer Main by Open Trench LF 2223 $273.00 $606,879.00 $325.00 $722,475.00 $258.00 $573,534.00 14 Furnish and Install Sewer Lateral w/ Cleanout To ROW and Reconnect LF 2110 $181.33 $382,606.30 $220.00 $464,200.00 $212.70 $448,797.00 15 Furnish and Install Sewer Lateral Backwater Assembly EA 31 $5,933.00 $183,923.00 $2,700.00 $83,700.00 $4,000.00 $124,000.00 16 Remove and Replace Existing Manhole w/ 48" Manhole at 5' To 10' Deep EA 11 $18,033.00 $198,363.00 $29,800.00 $327,800.00 $28,000.00 $308,000.00 17 Remove and Replace Existing Manhole w/ 60" Manhole at 10' To 15' Deep EA 2 $25,000.00 $50,000.00 $32,000.00 $64,000.00 $38,000.00 $76,000.00 18 Remove and Replace/Relocate Existing Manhole #1959 W/ 60" Manhole EA 1 $28,000.00 $28,000.00 $33,000.00 $33,000.00 $55,000.00 $55,000.00 Palm Engineering
Construction Company, Inc. Burtech Pipeline, Inc. Dick Miller, Inc.

Exhibit B

19 Remove and Replace Existing Drop Manhole #961 W/ 60" Manhole and 2 Drops LS 1 $28,333.00 $28,333.00 $50,000.00 $50,000.00 $55,000.00 $55,000.00 20 Remove and Replace/Relocate Existing Drop Manhole #964 W/ 60" Manhole and 2 Drops LS 1 $28,333.00 $28,333.00 $42,500.00 $42,500.00 $52,000.00 $52,000.00 21 Remove and Replace Existing Drop Manhole #971 W/ 60" Manhole and 3 Drops LS 1 $33,000.00 $33,000.00 $62,000.00 $62,000.00 $54,000.00 $54,000.00 22 Remove and Replace Existing Drop Manhole #974 W/ 60" Manhole and 2 Drops LS 1 $30,300.00 $30,300.00 $46,700.00 $46,700.00 $50,000.00 $50,000.00 23 Remove and Replace PCC Curb LF 795 $60.33 $47,962.35 $25.00 $19,875.00 $68.00 $54,060.00 24 Remove and Replace PCC Gutter LF 795 $25.00 $19,875.00 $25.00 $19,875.00 $58.00 $46,110.00 25 Remove and Replace PCC Sidewalk SF 2650 $15.00 $39,750.00 $15.75 $41,737.50 $15.00 $39,750.00 26 Cold Milling Asphalt Pavement - 2" Depth SF 232862 $0.49 $114,102.38 $0.40 $93,144.80 $0.67 $156,017.54 27 2" Asphalt Concrete Finish Course w/ Forti-Fi or Equal TON 2984 $165.00 $492,360.00 $182.00 $543,088.00 $153.00 $456,552.00 28 4" Asphalt Concrete Base Course TON 340 $253.00 $86,020.00 $340.00 $115,600.00 $303.00 $103,020.00 29 Temporary and Permanent Pavement Striping and Markings LS 1 $39,333.00 $39,333.00 $41,000.00 $41,000.00 $38,830.00 $38,830.00 30 Truncated Domes SF 168 $80.00 $13,440.00 $70.00 $11,760.00 $94.00 $15,792.00 31 ADA Curb Ramp EA 31 $7,003.00 $217,093.00 $7,700.00 $238,700.00 $9,150.00 $283,650.00 32 4" PCC Sidewalk (Bus Boarding Area) SF 75 $95.00 $7,125.00 $58.00 $4,350.00 $25.00 $1,875.00 33 Removal, Disposal, and Replacement of Unsuitable Base/ Subgrade material CY 261 $131.00 $34,191.00 $200.00 $52,200.00 $240.00 $62,640.00 34 Remove and Replace Type E Loop, Limit Line Type F Loop, and Type C Bike Loop (Caltrans Standard Plan ES-5B) EA 10 $750.00 $7,500.00 $1,250.00 $12,500.00 $715.00 $7,150.00 35 Concrete Bus Pad (Greenbook Std Plan 131-3, Section B-B, 85'x10'8") SF 1700 $39.33 $66,861.00 $33.00 $56,100.00 $23.00 $39,100.00 36 Furnish and Install 2" Conduit LF 270 $55.00 $14,850.00 $58.00 $15,660.00 $55.00 $14,850.00 37 Furnish and Install 3" Conduit LF 120 $60.00 $7,200.00 $64.00 $7,680.00 $61.00 $7,320.00 38 Furnish and Install 4" Conduit LF 240 $66.00 $15,840.00 $70.00 $16,800.00 $66.00 $15,840.00 39 Furnish and Install 2" Conduit for Fiber Optic System LF 900 $49.50 $44,550.00 $52.00 $46,800.00 $50.00 $45,000.00 40 Furnish and Install Pull Box (No. 5, 6, 6E) EA 9 $1,100.00 $9,900.00 $1,150.00 $10,350.00 $1,100.00 $9,900.00 41 Furnish and Install Pull Box (No. 6T) EA 1 $1,980.00 $1,980.00 $2,070.00 $2,070.00 $1,980.00 $1,980.00 42 Furnish and Install 1" Conduit Stub-Out EA 3 $833.00 $2,499.00 $865.00 $2,595.00 $825.00 $2,475.00 43 Furnish and Install 2" Conduit Stub-Out EA 1 $833.00 $833.00 $865.00 $865.00 $825.00 $825.00 44 Furnish and Install 3" Conduit Stub-Out EA 4 $831.00 $3,324.00 $865.00 $3,460.00 $825.00 $3,300.00 45 Furnish and Install 4" Conduit Stub-Out EA 2 $831.00 $1,662.00 $865.00 $1,730.00 $825.00 $1,650.00 46 Slurry Backfill Sewer Lateral Where Within 5' of Water Lateral EA 5 $1,333.00 $6,665.00 $2,000.00 $10,000.00 $2,500.00 $12,500.00 47 Relocate Water Lateral Where Within 5' of Sewer Lateral EA 5 $2,933.00 $14,665.00 $7,000.00 $35,000.00 $5,500.00 $27,500.00 $3,983,370.03 $4,974,935.30 $5,277,777.77
$3,983,370.03 $4,974,935.30 $5,277,777.77Total
Subtotal

OWNER - CONTRACTOR AGREEMENT

24TH STREET SEWER IMPROVEMENTS PROJECT, CIP NO. 25-21

This Owner-Contractor Agreement (“Agreement”) is made by and between the City of National City, 1243 National City Boulevard National City, California 91950 and Palm Engineering Construction Company, Inc. (“Contractor”), 7330 Opportunity Road, Suite A, San Diego, CA 92111 on the 30th day of June , 2026, for the construction of the above referenced Project.

In consideration of the mutual covenants and agreements set forth herein, the Owner and Contractor have mutually agreed as follows:

1. CONSTRUCTION

The C ontractor agrees to do all the w ork and furnish all the labor, services, materials and equipment necessary to construct and complete the Project in a turn-key manner in accordance with this Agreement and all documents and plans referenced in Exhibit “A”, (hereinafter “Contract Documents ”), in compliance with all relevant Federal, State of California, County of San Diego and City of National Ci ty codes and regulations, and to the satisfaction of the Owner.

2. CONTRACT PRICE

Owner hereby agrees to pay and the Contractor agrees to ac cept as f ull compensation for constructing the project in accordance with these Contract Documents in an amount not to exceed the contract p rice as set forth in Exhibit “B” attached hereto and incorporated herein by reference. Payments to the Contractor shall be m ade in the manner described in the Special Provisions.

3. TIME FOR PERFORMANCE

Time is of the essence for this Agreement and the Contractor shall construct the project in every detail to a complete and turn- key fashion to the satisfaction of the Owner within the specified duration set forth in the Special Provisions.

4. NON-DISCRIMINATION

In the performance of this Agreement, the Contractor shall not refuse or fail to hire or employ any qualified person, or bar or discharge from employment any person, or discriminate against any person, with respect to such person's compensation, terms, conditions or privileges of employment because of such person's race, religious status, sex or age.

5. AUTHORIZED OWNER REPRESENTATIVES

On behalf of the Owner , the Project Manager designated at the pre -construction meeting shall be the Owner’s authorized representative in the interpretation and enforcement of all Work performed in connection with this Agreement.

6. WORKERS' COMPENSATION INSURANCE

a) By my signature hereunder, as Contractor, I certify that I am aware of the provisions of Section 3700 of the Labor Code, which requires every employer to be insured against liability for Workers’ Compensation or to undertake self -insurance in accordance with the provisions of that Code, and I will comply with such provisions before commencing the performance of the Work of this Agreement.

b) The Contractor shall require each subcontractor to comply with the requirements of Section 3700 of the Labor Code. Before commencing any Work, the Contractor shall cause each subcontractor to execute the following certification:

"I am aware of the provisions of Section 3700 of the Labor Code, which requires every employer to be insured against liability for worker's compensation or to undertake self-insurance in accordance with the provisions of that Code, and I will comply with such provisions before commencing the performance of the Work of this Agreement."

7. ENTIRE AGREEMENT; CONFLICT

The Contract Documents comprise the entire agreement between the Owner and the Contractor with respect to the Work. In the event of conflict between the terms of this Agreement and the bid of the Contractor, then this Agreement shall control and nothing herein shall be considered as an acceptance of the terms of the bid conflicting herewith.

8. MAINTENANCE OF AGREEMENT DOCUMENTATION

Contractor shall maintain all books, documents, papers, employee time sheets, accounting records and other evidence pertaining to costs incurred and shall make such materials available at its office at all reasonable times during the term of this Agreement and for three (3) years from the date of final payment under this Agreement, for inspection by Owner and copies thereof shall be furnished to Owner if requested.

9. INDEPENDENT CONTRACTOR

At all times during the term of this Agreement, Contractor shall be an independent contractor and shall not be an employee, agent, partner or joint venturer of the Owner .

Owner shall have the right to control Contractor insofar as the results of Contractor's

services rendered pursuant to this Agreement; however, Owner shall not have the right to control the means by which Contractor accomplishes such services.

10. LICENSES AND PERMITS

Contractor represents and declares to Owner that it has all licenses, permits, qualifications and approvals of whatever nature which are legally required to practice its profession. Contractor represents and warrants to Owner that Contractor shall, at its sole cost and expense, keep in effect at all times during the term of this Agreement, any licenses, permits, qualifications or approvals which are legally required for Contractor to practice its profession.

11. GOVERNING LAW, VENUE

This Agreement and the Contract Documents shall be construed under and in accordance with the laws of the State of California, and the appropriate venue for any action or proceeding arising from this Agreement and/or the Contract Documents shall be had in the Superior Court of San Diego, Central Branch.

12. COUNTERPARTS

This Agreement may be executed in any number of counterparts, each of which shall for all purposes be deemed to be an original.

13. FALSE CLAIMS

Contractor acknowledges that if a false claim is submitted to the Owner , it may be considered fraud and Contractor may be subject to criminal prosecution. Contractor acknowledges that the False Claims Act, California Government Code sections 12650, et seq., provides for civil penalties where a person knowingly submits a false claim to a public entity. These provisions include within their scope false claims made with deliberate ignorance of the false information or in reckless disregard of the truth or falsity of the information. In the event the Owner seeks to recover penal ties pursuant to the False Claims Act, it is entitled to recover its litigation costs, including attorneys’ fees. Contractor hereby acknowledges that the filing of a false claim may the Contractor to an administrative debarment proceeding wherein Contract or may be prevented from further bidding on public contracts for a period of up to five (5) years.

I have read and understood all of the provisions of this Section 15, above:

(Initial) (Initial)

14. AGREEMENT MODIFICATION

This Agreement and the Contract Documents may not be modified orally or in any manner other than by an amendment in writing and signed by the Owner and the Contractor.

IN WITNESS WHEREOF this Agreement is executed as of the date first written above.

Owner: Contractor:

Ron Morrison (Owner/Officer signature)
Mayor, City of National City

Attest: Print name and title

Heidi Skinner (Second officer signature if a corporation) Interim City Attorney, City of National City

Print name and title

Contractor’s City Business License No.

State Contractor’s License No. and Class

Business street address

City, State and Zip Code

EXHIBIT A

CONTRACT DOCUMENTS

Owner/Contractor Agreement

Bid Schedule

Addenda

Plans

Special Provisions (Specifications)

San Diego County Regional Standard Drawings

City of National City Standard Drawings

Standard Specifications for Public Works Construction and Regional Supplements (Greenbook)

State Standard Specifications

State Standard Plans

California Building, Mechanical, Plumbing and Electrical Codes

Permits issued by jurisdictional regulatory agencies

Electric, gas, and communications companies specifications and standards

Sweetwater Authority specifications and standards

Specifications, standards and requirements of MTS, BNSF, SANDAG, Port of San Diego and all other agencies that may be adjacent and/or affected by the project.

EXHIBIT B

CONTRACT PRICE

No. Item Description Unit Qty Unit Price Line Total
1 Mobilization/Demobilization LS 1 $133,000.00 $133,000.00 2 Water Pollution Control LS 1 $23,000.00 $23,000.00
3 Trench Shoring - Mainline and Manholes LS 1 $55,000.00 $55,000.00 4 Trench Shoring - Laterals EA 54 $135.00 $7,290.00
5 Dewatering Plan LS 1 $3,333.00 $3,333.00
6 Dewatering Mobilization/Demobilization LS 1 $5,333.00 $5,333.00 7 Dewatering and Treatment LS 1 $6,333.00 $6,333.00
8 Traffic Control LS 1 $73,000.00 $73,000.00
9 Utility Potholing and Coordination LS 1 $63,000.00 $63,000.00 10 Temporary Sewer Bypass Plan LS 1 $61,333.00 $61,333.00 11 Remove Existing 10" Sewer Main and Replace with 12" SDR35 PVC Sewer Main by Open Trench LF 60 $800.00 $48,000.00
12 Remove Existing 8" Sewer Main and Replace with 10" SDR35 PVC Sewer Main by Open Trench LF 2210 $283.00 $625,430.00
13 Remove Existing 6" Sewer Main and Replace with 8" SDR35 PVC Sewer Main by Open Trench LF 2223 $273.00 $606,879.00
14 Furnish and Install Sewer Lateral w/ Cleanout To ROW and Reconnect LF 2110 $181.33 $382,606.30 15 Furnish and Install Sewer Lateral Backwater Assembly EA 31 $5,933.00 $183,923.00 16 Remove and Replace Existing Manhole w/ 48" Manhole at 5' To 10' Deep EA 11 $18,033.00 $198,363.00 17 Remove and Replace Existing Manhole w/ 60" Manhole at 10' To 15' Deep EA 2 $25,000.00 $50,000.00 18 Remove and Replace/Relocate Existing Manhole #1959 W/ 60" Manhole EA 1 $28,000.00 $28,000.00 19 Remove and Replace Existing Drop Manhole #961 W/ 60" Manhole and 2 Drops LS 1 $28,333.00 $28,333.00
20 Remove and Replace/Relocate Existing Drop Manhole #964 W/ 60" Manhole and 2 Drops LS 1 $28,333.00 $28,333.00
21 Remove and Replace Existing Drop Manhole #971 W/ 60" Manhole and 3 Drops LS 1 $33,000.00 $33,000.00
22 Remove and Replace Existing Drop Manhole #974 W/ 60" Manhole and 2 Drops LS 1 $30,300.00 $30,300.00
23 Remove and Replace PCC Curb LF 795 $60.33 $47,962.35 24 Remove and Replace PCC Gutter LF 795 $25.00 $19,875.00 25 Remove and Replace PCC Sidewalk SF 2650 $15.00 $39,750.00 26 Cold Milling Asphalt Pavement - 2" Depth SF 232862 $0.49 $114,102.38 27 2" Asphalt Concrete Finish Course w/ Forti-Fi or Equal TON 2984 $165.00 $492,360.00 28 4" Asphalt Concrete Base Course TON 340 $253.00 $86,020.00 29 Temporary and Permanent Pavement Striping and Markings LS 1 $39,333.00 $39,333.00 30 Truncated Domes SF 168 $80.00 $13,440.00
31 ADA Curb Ramp EA 31 $7,003.00 $217,093.00
32 4" PCC Sidewalk (Bus Boarding Area) SF 75 $95.00 $7,125.00 33 Removal, Disposal, and Replacement of Unsuitable Base/ Subgrade material CY 261 $131.00 $34,191.00 34 Remove and Replace Type E Loop, Limit Line Type F Loop, and Type C Bike Loop (Caltrans Standard Plan ES-5B) EA 10 $750.00 $7,500.00

35 Concrete Bus Pad (Greenbook Std Plan 131-3, Section B-B, 85'x10'8") SF 1700 $39.33 $66,861.00 36 Furnish and Install 2" Conduit LF 270 $55.00 $14,850.00 37 Furnish and Install 3" Conduit LF 120 $60.00 $7,200.00 38 Furnish and Install 4" Conduit LF 240 $66.00 $15,840.00 39 Furnish and Install 2" Conduit for Fiber Optic System LF 900 $49.50 $44,550.00 40 Furnish and Install Pull Box (No. 5, 6, 6E) EA 9 $1,100.00 $9,900.00 41 Furnish and Install Pull Box (No. 6T) EA 1 $1,980.00 $1,980.00 42 Furnish and Install 1" Conduit Stub-Out EA 3 $833.00 $2,499.00 43 Furnish and Install 2" Conduit Stub-Out EA 1 $833.00 $833.00 44 Furnish and Install 3" Conduit Stub-Out EA 4 $831.00 $3,324.00 45 Furnish and Install 4" Conduit Stub-Out EA 2 $831.00 $1,662.00 46 Slurry Backfill Sewer Lateral Where Within 5' of Water Lateral EA 5 $1,333.00 $6,665.00 47 Relocate Water Lateral Where Within 5' of Sewer Lateral EA 5 $2,933.00 $14,665.00 $3,983,370.03
$3,983,370.03
Subtotal
Total

CORPORATE CERTIFICATE

I, ___________________________________ certify that I am the Secretary of the Corporation named as Contractor in the foregoing Contract; that _____________________________________, who signed said contract on behalf of the Contractor, was then ______________________________________________ of said Corporation; that said contract was duly signed for and in behalf of said Corporation by authority of its governing body and is within the scope of its corporate powers.

I, ___________________________________ certify that I am the Secretary of the Corporation named as Contractor in the foregoing Contract; that _____________________________________, who signed said contract on behalf of the Contractor, was then _______________________________________________ of said Corporation; that said contract was duly signed for and in behalf of said Corporation by authority of its governing body and is within the scope of its corporate powers.

Corporate Seal:

PARTNERSHIP CERTIFICATE

STATE OF ______________________________)
) ss
COUNTY OF _____________________________)

On this __________ day of ___________, 20 _, before me, the undersigned, a Notary Public in and for said County and State, personally appeared:

_____________________________________________________________

____________________________ (Notary Seal)

known to me to be _________________________________of the partners of the partnership that executed the within instrument, and acknowledged to me that such partnership executed the same.

Signature: _______________________________________________________________

Name (Type or Print): _____________________________________________________ (Notary Public in and for said County and State)

My Commission expires: __________________________________________________

PERFORMANCE BOND

WHEREAS, the City Council of the City of National City, by Resolution No. _______________, passed the 30th day of _ June_, 2026 has awarded to ___________________________________, hereinafter designated as the "Principal", the 24TH STREET SEWER IMPROVEMENTS, CIP No. 25-21.

WHEREAS, said Principal is required under the terms of said contract to furnish a bond for the faithful performance of said contract.

NOW, THEREFORE, we, the Principal and
___________________________________________ as surety, are held and firmly bound unto the City Council of the City of National City, hereinafter called the "Council", in the penal sum of
_______________________________________________________($______________) lawful money of the United States, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, executors, administrators and successors, jointly and severally, firmly by these presents.

THE CONDITION OF THIS OBLIGATION IS SUCH THAT if the above bounden Principal, his/her or its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perfo rm the covenants, conditions and agreements in the said contract any alteration thereof made as therein provides, on his or their part, to be kept and performed at the time and in the amount therein specified, and in all respects according to their true in tent and meaning, and shall indemnify and save harmless the City of National City, the City Council, their officers, agents, and employees, as therein stipulated, then this obligation shall become null and void; otherwise it shall be and remain in full force and virtue.

And the said Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the contract or to the work to be performed herein or the specifications accompanying the sa me shall in any wise affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or additions to the terms of the contract or to the work or to the specifications.

In the event suit is brought upo n this bond by the City of National City and judgment is recovered, the surety shall pay all costs incurred by the Council in such suit, including a reasonable attorney's fee to be fixed by the Court.

IN WITNESS WHEREOF three identical counterparts of this instrument, each of which shall for all purposes be deemed an original thereof, have been duly executed by the

Principal and Surety above named, on the ________ day of ____________, 20_.

____________________________(SEAL)

____________________________(SEAL)

____________________________(SEAL)

____________________________(SEAL)

____________________________(SEAL)

____________________________(SEAL)

Surety Principal

PERFORMANCE BOND

ATTORNEY-IN-FACT ACKNOWLEDGEMENT OF SURETY

STATE OF ______________________________ )
) ss
COUNTY OF _____________________________)

On this______ day of ______________, 20_, before me, the undersigned, a Notary Public in and for said County and State, personally appeared ____________________________________________ known to me to be the person whose name is subscribed to the within instrument as the attorney -in-fact of the ____________________________________________, the corporation named as Surety in said instrument, and acknowledged to me that he subscribed the name of said corporation thereto as Surety, and his own name as attorney-in-fact.

NOTE: Signature of those executing for
Surety must be properly
acknowledged.

NOTE: The Attorney -in-fact must attach a
certified c opy of the Power of
Attorney.

Signature: _______________________________________________________________

Name (Type or Print): _____________________________________________________ Notary Public in and for said County and State

My Commission expires: __________________________________________________

PAYMENT BOND

WHEREAS, the City Council of the City of National City, by Resolution No. ________________, passed the 30th day of _ June_, 2026 has awarded ________________________________________________, hereinafter designated as the "Principal”, the 24th Street Sewer Improvements, CIP No. 25-21.

WHEREAS, said Principal is required by Chapter 5 (commencing at Section 3225) and Chapter 7 (commencing at Section 3247), Title 15, Part 4, Division 3 of the California Civil Code to furnish a bond in connection with said contract;

NOW, THEREFORE, we, the Principal and __________________________________ as surety, are held and firmly bound unto the City Council of the City of National City, hereinafter called the "Council", in the penal sum of
____________________________________________ lawful money of the United States, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, executors, administrators and successors, jointly and severally, firmly by these presents.

THE CONDITION OF THIS OBLIGATION IS SUCH that if said Principal, his/her or its subcontractors, heirs, executors, administrators, successors, or assigns, shall fail to pay any of the pe rsons named in Section 3181 of the California Civil Code, or amounts due under the Unemployment Insurance Code with respect to work or labor performed by any such claimant, or for any amounts required to be deducted, withheld, and paid over to the Franchis e Tax Board from the wages of employees of the Contractor and his subcontractors pursuant to Section 18806 of the Revenue and Taxation Code, with respect to such work and labor the Surety will pay for the same in an amount not exceeding the sum hereinafter specified, and also, in case suit is brought upon this bond, a reasonable attorney's fee, to be fixed by the Court.

This Bond shall inure to the benefit of any of the persons named in Section 3181 of the California Civil Code, so as to give a right of ac tion to such persons or their assigns in any suit brought upon this bond.

It is further stipulated and agreed that the Surety on this bond shall not be exonerated or released from the obligation of this bond by any change, extension of time for performa nce, addition, alteration or modification in, to, or of any contract, plans, specifications, or agreement pertaining or relating to any scheme or work of improvement hereinabove described or pertaining or relating to the furnishing of labor, materials, or equipment therefore, not by any change or modification of any terms of payment or extension of the time for any payment pertaining or relating to any scheme or work of improvement hereinabove described, nor by any rescission or attempted rescission of the contract, agreement or bond, nor by any conditions precedent or subsequent in the bond attempting to limit the right of recovery of claimants otherwise entitled to recover under any such contract or agreement or under the bond, nor by any fraud practiced b y any person other than the claimant seeking to recover on the bond and that this bond be construed most strongly against the Surety and in favor of all persons for whose benefit such bond is given, and under no circumstances shall Surety be released from liability to those for whose benefit such bond has been given, by reason of any breach of contract between the owner of Public Entity and original contractor or on the part of any obliges named in such bond, but the sole conditions of recovery shall be that claimant is a person described in Section 3110 or 3112 of the California Civil Code, and has not been paid the full amount of his claim and that Surety does hereby waive notice of any such change, extension of time, addition, alteration or modification herein mentioned.

IN WITNESS WHEREOF three identical counterparts of this instrument, each of which shall for all purposes be deemed an original thereof, have been duly executed by the Principal and Surety above named, on the ________ day of _____________________, 20_.

____________________________(SEAL)

____________________________(SEAL)

____________________________(SEAL)

____________________________(SEAL)

____________________________(SEAL)

____________________________(SEAL)

Surety Principal

ATTORNEY-IN-FACT ACKNOWLEDGEMENT OF SURETY

STATE OF ______________________________ )
) ss
COUNTY OF _____________________________)

On this day _______ of __________________, 20 _, before me, the undersigned, a Notary Public in and for said County and State, personally appeared ____________________________________________ known to me to be the person whose name is subscribed to the within instrument as the attorney -in-fact of the ____________________________________________, the corporation named as Surety in said instrument, and acknowledged to me that he subscribed the name of said corporation thereto as Surety, and his own name as attorney-in-fact.

NOTE: Signature of those executing for
Surety must be properly
acknowledged.

NOTE: The Attorney -in-fact must attach a
certified copy of the Power of
Attorney.

Signature:

Name (Type or Print):
(Notary Public in and for said County and State)

My Commission expires:

ATTACH ALL BONDS

RESOLUTION NO. 2026 -

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA, 1) AWARDING A CONTRACT TO PALM ENGINEERING CONSTRUCTION COMPANY, INC. IN THE NOT -TO-EXCEED AMOUNT OF $ 3,983,370.03 FOR THE 24TH STREET SEWER IMPROVEMENTS PROJECT, CIP NO. 2 5-21; 2) AUTHORIZING A 15% CONTINGENCY IN THE AMOUNT OF $ 597,506 FOR ANY UNFORESEEN CHANGES; AND 3) AUTHORIZING THE MAYOR TO EXECUTE THE CONTRACT.

WHEREAS, the 24th Street Sewer Improvements project, CIP No. 25 -21 (the “Project”) will remove and replace the existing 6, 8, and 10 -inch VCP sewer main with 8, 10, and 12 -inch PVC sewer main, respectively, along E 24th Street from National City Boulevard to N Ave; and

WHEREAS, on April 16, 2026, the bid solicitation for the Project was posted on PlanetBids, a free public electronic bidding system for contractors; and

WHEREAS, on April 21st and April 27th, 2026, the bid solicitation was advertised in the local newspaper; and

WHEREAS, on May 14, 2026, six (6) bids were received by the 2:00 p.m. deadline; and

WHEREAS, upon review of all documents submitted, Palm Engineering Construction Company, Inc.’s bid in the total bid amount of $3,983,370.03 was deemed responsive and they are the lowest responsible bidder qualified to perform the work as described in the Project specifications; and

WHEREAS, City staff recommends 1) awarding a contract to Palm Engineering Construction Company, Inc. in the not to -exceed amount of $3,983,370.03 for the 24th Street Sewer Improvements project, CIP No. 25-21; 2) authorizing a 15% contingency in the amount of $597,506 for any unforeseen changes; and 3) authorizing the Mayor to execute the contract.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS:

Section 1: That the City Council hereby authorizes the Mayor to execute the contract with Palm Engineering Construction Company, Inc. in the not-to-exceed amount of $3,983,370.03 for the 24th Street Sewer Improvements project, CIP No. 25-21.

Section 2: That the City Council hereby authorizes a 15% contingency in the amount of $597,506 for any unforeseen changes.

Section 3: That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions.

PASSED and ADOPTED this 30th day of June, 2026.

Ron Morrison, Mayor
ATTEST:

Shelley Chapel, MMC, City Clerk
APPROVED AS TO FORM:

Heidi Skinner, City Attorney

AGENDA REPORT

Department: Engineering and Public Works
Prepared by: Luca Zappiello, Principal Civil Engineer Meeting Date: Tuesday, June 30, 2026
Approved by: Douglas J. Schulze, City Manager

SUBJECT:

Awarding a Contract to RGC General Engineering, Inc. for the N Avenue Traffic Circles, CIP No. 25-08.

RECOMMENDATION:

Adopt a Resolution Entitled, “Resolution of the City Council of the City of National City, California, 1) Awarding a Contract to RGC General Engineering, Inc. in the Not-To-Exceed Amount of $242,869 for the N Avenue Traffic Circles, CIP No. 25-08; 2) Authorizing a 15% Contingency in the Amount of $36,430.35 for any Unforeseen Changes; and 3) Authorizing the Mayor to Execute the Contract.”

BOARD/COMMISSION/COMMITTEE PRIOR ACTION:

Not Applicable.

EXPLANATION:

Residents contacted City staff to report speeding along the 2000 block of N Avenue. After performing site evaluations, collecting traffic data and reviewing roadway characteristics, staff recommended installing mini traffic circles at the intersections of N Avenue with E 20th Street and E 22nd Street. These neighborhood traffic circles are designed to reduce speeds to 10-15 MPH as drivers traverse the intersections. Similar to roundabouts, mini traffic circles typically include a central island. The City of Imperial Beach has successfully implemented mini traffic circles, such as the one at 8th Street and Donax Avenue, which have performed very well.

After informing area residents of the proposed traffic calming solutions, which were well received, staff proceeded with preparing plans, specifications and estimates for construction bidding . On April 2, 2026, a bid solicitation was posted on PlanetBids, which is a free public electronic bidding system for contractors. On April 14, 2026, and April 22, 2026, the bid solicitation was advertised in the local newspaper. On April 30, 2026, eight (8) bids were received by the 2:00 p.m. deadline and RGC General Engineering, Inc. was the apparent lowest bidder with a total bid amount of $242,869.00.

Upon review of all documents submitted, RGC General Engineering, Inc.’s bid was deemed responsive and they are the lowest responsible bidder qualified to perform the work as described in the project specifications.

Staff recommends awarding a contract to RGC General Engineering, Inc. , in the not -to-exceed amount of $ 242,869.00 and authorizing a 1 5% contingency in the amount of $ 36,430.35 to address any unforeseen conditions that may arise during construction.

Construction is estimated to be completed by December 2026.

FINANCIAL STATEMENT:

Funding for contract award and 15% contingency is available through use of local TransNet revenues, as authorized by City Council through prior appropriations.

Expenditure Account #307-10-18-18500-7598-6166307

Contract Award - $242,869.00
15% Contingency - $36,430.35

RELATED CITY COUNCIL 2020-2025 STRATEGIC PLAN GOAL:

Transportation Choices and Infrastructure

ENVIRONMENTAL REVIEW:

A Notice of Exemption under Categorical Exemption – Class 1 Section 15301 – Existing Facilities of the CEQA Guidelines was filed with the County Recorder’s Office on April 7, 2026.

PUBLIC NOTIFICATION:

The Agenda Report was posted at least 72 hours before the Regular Meeting date and time, and 24 hours before a Special Meeting in accordance with the Ralph M. Brown Act.

ORDINANCE:

Not Applicable

EXHIBITS:

Exhibit A - Project Exhibit
Exhibit B - Bid Opening Summary
Exhibit C - Three Lowest Bidders Summary
Exhibit D - Owner-Contract Agreement
Exhibit E - Resolution

TRAFFIC
E 20TH STREET

N AVENUE
E 22ND STREET

N AVENUE
Exhibit A

BID OPENING SUMMARY

NAME: N Ave Traffic Circles
CIP NO: 25-08
DATE: April 30, 2026
TIME: 2:00 P.M.

ESTIMATE: $325,000
PROJECT ENGINEER: Luca Zappiello

NO. BIDDER’S NAME BASE BID AMOUNT

1 RGC General Engineering, Inc.
310 Davidson Street
Chula Vista, California 91910
$242,869.00

2 A. B. Hashmi, Inc.
13066 Deer Canyon Court
San Diego, California 92131
$262,983.00

3 Palm Engineering Construction Company,
7330 Opportunity Rd Suite A
San Diego, California 92111
$277,436.27

4 Prestige prime engineering
1414 Sundale Rd
El Cajon, California 92019
$286,463.90

5 LC Paving & Sealing Inc
330 Rancheros Dr #208
San Marcos, California 92069
$319,886.25
6 Fordyce Construction, Inc.
9932 Prospect Ave #138
Santee, California 92071
$324,194.00
7 M Cooper Concrete Inc
641 Guava Avenue
Chula Vista, California 91910
$330,677.65
8 E-4 Construction Inc
12935 Pomerado Rd Suite C
Poway, California 92064
$355,676.25

Nu
m
U
nit
Quanti
ty Description Unit Price Line Total Unit Price Line Total Unit Price Line Total 1 LS 1 Mobilization/Demobilizatio n $5,000 $5,000 $16,000 $16,000 $13,333 $13,333 2 LS 1 Traffic and Pedestrian Co ntrol $4,122 $4,122 $15, 000 $15,000 $7,300 $7,300 3 LS 1 Protection and Restoration of Surve y $3,000 $3,000 $2,000 $2,000 $3,333 $3,333 4 LS 1 Construction Surveyin g $65,000 $65,000 $10,000 $10,000 $13,333 $13,333 5 LS 1 SWPPP, Water Quality Cont rol $7,500 $7,500 $3, 000 $3,000 $4,333 $4,333 6 LS 1 Clearing and Grubbing $4,000 $4,000 $13,500 $13,500 $19,300 $19,300 7 SF 330 Remove and Replace Existing Asphal t $22 $7,260 $20 $6,600 $37 $12,210 8 SF 1515 Cold Mill Asphalt Concrete Paving - 2 $6 $8,787 $9 $13,635 $7 $11,105 9 SF 76100 Slurry Seal - Type II $1 $46,421 $1 $51,748 $1 $61,641 10 SF 100 Traffic Circles with Colored and Stam $159 $15,899 $100 $10,000 $133 $13,300 11 LF 260 6" PCC Rolled Curb and Gutter (SDR S $24 $6,240 $90 $23,400 $73 $18,980 12 LF 90 6" PCC Curb and Gutter (SDRSD G-0 2 $26 $2,340 $75 $6,750 $63 $5,670 13 SF 800 PCC Cross Gutter (SDR SD G-12) $17 $13,600 $25 $20,000 $23 $18,400 14 SF 400 4" PCC Sidewalk (SDR SD G-07) $10 $4,000 $20 $8,000 $13 $5,200 15 EA 4 PCC Curb Ramp Type A (SDR SD G-27 $3,500 $14,000 $5,000 $20,000 $5,733 $22,933 16 LS 1 Roadway Signage, Striping, and Mar k $20,000 $20,000 $24,000 $24,000 $22,933 $22,933 17 EA 2 Procure and Install Solar Sp eed Feed $7,800 $15,600 $9,500 $19,000 $11,333 $22,666 18 EA 2 Adjust Water Valve Cans to Grade $50 $100 $175 $350 $733 $1,466 $59,500$88,622
Base Bid - General
Base Bid - Traffic Circles
Subtotal
Subtotal
Total
$154,247
$242,869
$203,483
$262,983
$216,504
$277,436
$60,932
RGC General
Engineering, Inc. 310
Davidson Street Chual
Vista, California 91910
N Ave Traffic Circles (Non-PLA) CIP No. 25-08
Exhibit C - Three Lowest Bidders Summary
Bid Opening: April 30, 2026
Engineering & Public Works Department
A. B. Hashmi, Inc.
13066 Deer Canyon
Court San Diego,
California 92131
Palm Engineering
Construction
Company, 7330
Opportunity Rd

OWNER - CONTRACTOR AGREEMENT

N AVENUE TRAFFIC CIRLCES CIP NO. 25-08

This Owner-Contractor Agreement (“Agreement”) is made by and between the City of National City, 1243 National City Boulevard National City, California 91950 and RGC General Engineering, Inc. (“Contractor”), 310 Davidson Street, Chula Vista, CA 91910 on the 16st day of June, 2026, for the construction of the above referenced Project.

In consideration of the mutual covenants and agreements set forth herein, the Owner and Contractor have mutually agreed as follows:

1. CONSTRUCTION

The Contractor agrees to do all the work and furnish all the labor, services, materials and equipment necessary to construct and complete the Project in a turn -key manner in accordance with this Agreement and all documents and plans referenced in Exhibit “A”, (hereinafter “Contract Documents ”), in compliance with all relevant Federal, State of California, County of San Diego and City of National City codes and regulations, and to the satisfaction of the Owner.

2. CONTRACT PRICE

Owner hereby agrees to pay and the Contractor agrees to accept as full compensation for constructing the project in accordance with these Contract Documents in an amount not to exceed the contract price as set forth in Exhibit “B” attached hereto and incorporated herein by reference. Payments to the Contractor shall be made in the manner described in the Special Provisions.

3. TIME FOR PERFORMANCE

Time is of the essence for this Agreement and the Contractor shall construct the project in every detail to a complete and turn-key fashion to the satisfaction of the Owner within the specified duration set forth in the Special Provisions.

4. NON-DISCRIMINATION

In the performance of this Agreement, the Contractor shall not refuse or fail to hire or employ any qualified person, or bar or discharge from employment any person, or discriminate against any person, with respect to such person's compensation, terms, conditions or privileges of employment because of such person's race, religious status, sex or age.

5. AUTHORIZED OWNER REPRESENTATIVES

On behalf of the Owner, the Project Manager designated at the pre-construction meeting shall be the Owner’s authorized representative in the interpretation and enforcement of all Work performed in connection with this Agreement.

6. WORKERS' COMPENSATION INSURANCE

a) By my signature hereunder, as Contractor, I certify that I am aware of the provisions of Section 3700 of the Labor Code, which requires every employer to be insured against liability for Workers’ Compensation or to undertake self -insurance in accordance with the provisions of that Code, and I will comply with such provisions before commencing the performance of the Work of this Agreement.

b) The Contractor shall require each subcontractor to comply with the requirements of Section 3700 of the Labor Code. Before commencing any Work, the Contractor shall cause each subcontractor to execute the following certification:

"I am aware of the provisions of Section 3700 of the Labor Code, which requires every employer to be insured against liability for worker's compensation or to undertake self-insurance in accordance with the provisions of that Code, and I will comply with such provisions before commencing the performance of the Work of this Agreement."

7. ENTIRE AGREEMENT; CONFLICT

The Contract Documents comprise the entire agreement between the Owner and the Contractor with respect to the Work. In the event of conflict between the terms of this Agreement and the bid of the Contractor, then this Agreement shall control and nothing herein shall be considered as an acceptance of the terms of the bid conflicting herewith.

8. MAINTENANCE OF AGREEMENT DOCUMENTATION

Contractor shall maintain all books, documents, papers, employee time sheets, accounting records and other evidence pertaining to costs incurred and shall make such materials available at its office at all reasonable times during the term of this Agreement and for three (3) years from the date of final payment under this Agreement, for inspection by Owner and copies thereof shall be furnished to Owner if requested.

9. INDEPENDENT CONTRACTOR

At all times during the term of this Agreement, Contractor shall be an independent contractor and shall not be an employee, agent, partner or joint venturer of the Owner .

Owner shall have the right to control Contractor insofar as the results of Contractor's

services rendered pursuant to this Agreement; however, Owner shall not have the right to control the means by which Contractor accomplishes such services.

10. LICENSES AND PERMITS

Contractor represents and declares to Owner that it has all licenses, permits, qualifications and approvals of whatever nature which are legally required to practice its profession.

Contractor represents and warrants to Owner that Contractor shall, at its sole cost and expense, keep in effect at all times during the term of this Agreement, any licenses, permits, qualifications or approvals which are legally required for Contractor to practice its profession.

11. GOVERNING LAW, VENUE

This Agreement and the Contract Documents shall be construed under and in accordance with the laws of the State of California, and the appropriate venue for any action or proceeding arising from this Agreement and/or the Contract Documents shall be had in the Superior Court of San Diego, Central Branch.

12. COUNTERPARTS

This Agreement may be executed in any number of counterparts, each of which shall for all purposes be deemed to be an original.

13. FALSE CLAIMS

Contractor acknowledges that if a false claim is submitted to the Owner , it may be considered fraud and Contractor may be subject to criminal prosecution. Contractor acknowledges that the False Claims Act, California Government Code sections 12650, et seq., provides for civil penalties where a person knowingly submits a false claim to a public entity. These provision s include within their scope false claims made with deliberate ignorance of the false information or in reckless disregard of the truth or falsity of the information. In the event the Owner seeks to recover penalties pursuant to the False Claims Act, it is entitled to recover its litigation costs, including attorneys’ fees. Contractor hereby acknowledges that the filing of a false claim may the Contractor to an administrative debarment proceeding wherein Contractor may be prevented from further bidding on public contracts for a period of up to five (5) years.

I have read and understood all of the provisions of this Section 13, above:

(Initial) (Initial)

14. AGREEMENT MODIFICATION

This Agreement and the Contract Documents may not be modified orally or in any manner other than by an amendment in writing and signed by the Owner and the Contractor.

IN WITNESS WHEREOF this Agreement is executed as of the date first written above.

Owner: Contractor:

RGC General Engineering, Inc.

Ron Morrison (Owner/Officer signature)
Mayor, City of National City

Print name and title
APPROVED AS TO FORM:
(Second officer signature if a corporation)

By: __________________________________
Heidi Skinner, Print name and title
Interim City Attorney, City of National City

Contractor’s City Business License No.

State Contractor’s License No. and Class

Business street address

City, State and Zip Code

EXHIBIT A

CONTRACT DOCUMENTS

Owner/Contractor Agreement

Bid Schedule

Addenda

Plans

Special Provisions (Specifications)

San Diego County Regional Standard Drawings

City of National City Standard Drawings

Standard Specifications for Public Works Construction and Regional Supplements (Greenbook)

State Standard Specifications

State Standard Plans

California Building, Mechanical, Plumbing and Electrical Codes

Permits issued by jurisdictional regulatory agencies

Electric, gas, and communications companies specifications and standards

Sweetwater Authority specifications and standards

Specifications, standards and requirements of MTS, BNSF, SANDAG, Port of San Diego and all other agencies that may be adjacent and/or affected by the project.

EXHIBIT B

CONTRACT PRICE

(NOTE - TO BE COMPLETED TO CONFORM WITH BID SCHEDULE ITEMS)

N AVENUE TRAFFIC CIRLCES CIP NO. 25-08

CORPORATE CERTIFICATE

I, ___________________________________ certify that I am the Secretary of the Corporation named as Contractor in the foregoing Contract; that _____________________________________, who signed said contract on behalf of the Contractor, was then ______________________________________________ of said Corporation; that said contract was duly signed for and in behalf of said Corporation by authority of its governing body and is within the scope of its corporate powers.

I, ___________________________________ certify that I am the Secretary of the Corporation named as Contractor in the foregoing Contract; that _____________________________________, who signed said contract on behalf of the Contractor, was then _______________________________________________ of said Corporation; that said contract was duly signed for and in behalf of said Corporation by authority of its governing body and is within the scope of its corporate powers.

Corporate Seal:

PARTNERSHIP CERTIFICATE

STATE OF ______________________________)
) ss
COUNTY OF _____________________________)

On this __________ day of ___________, 20____, before me, the undersigned, a Notary Public in and for said County and State, personally appeared:

_____________________________________________________________

____________________________ (Notary Seal)

known to me to be _________________________________of the partners of the partnership that executed the within instrument, and acknowledged to me that such partnership executed the same.

Signature: _______________________________________________________________

Name (Type or Print): _____________________________________________________ (Notary Public in and for said County and State)

My Commission expires: __________________________________________________

PERFORMANCE BOND

WHEREAS, the City Council of the City of National City, by Resolution No. 20 26- _____, on the 16st day of June , 2026 , has awarded RGC General Engineering, Inc., hereinafter designated as the "Principal", the N Ave Traffic Circles, CIP No. 25-08

WHEREAS, said Principal is required under the terms of said contract to furnish a bond for the faithful performance of said contract.

NOW, THEREFORE, we, the Principal and
___________________________________________ as surety, are held and firmly bound unto the City of National City, hereinafter called the "City", in the penal sum of Two-hundred and forty-two thousand, eight-hundred and sixty-nine dollars and zero cents ($242,869.00) dollars lawful money of the United States, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, executors, administrators and successors, jointly and severally, firmly by these presents.

THE CONDITION OF THIS OBLIGATION IS SUCH THAT if the above bounden Principal, his/her or its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and agreements in the said contract any alteration thereof made as therein provides, on his or their part, to be kept and performed at the time and in the amount therein specified, and in all respects according to their true intent and meaning, and shall indemnify and save harmless the City of National City, its officers, agents, employees, and volunteers as therein stipulated, then this obligation shall become null and void; otherwise it shall be and remain in full force and virtue.

And the said Surety, fo r value received, hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the contract or to the work to be performed herein or the specifications accompanying the same shall in any wise affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or additions to the terms of the contract or to the work or to the specifications.

In the event suit is brought upon this bond by the City and judgment is rec overed, the surety shall pay all costs incurred by the City in such suit, including a reasonable attorney's fee to be fixed by the Court.

IN WITNESS WHEREOF three identical counterparts of this instrument, each of which shall for all purposes be deemed an original thereof, have been duly executed by the

Principal and Surety above named, on the ________ day of ____________, 20____.

____________________________(SEAL)

____________________________(SEAL)

____________________________(SEAL)

____________________________(SEAL)

____________________________(SEAL)

____________________________(SEAL)

Surety Principal

PERFORMANCE BOND

ATTORNEY-IN-FACT ACKNOWLEDGEMENT OF SURETY

STATE OF ______________________________ )
) ss
COUNTY OF _____________________________)

On this______ day of ______________, 20____, before me, the undersigned, a Notary Public in and for said County and State, personally appeared ____________________________________________ known to me to be the person whose name is subscribed to the within instrument as the attorney -in-fact of the ____________________________________________, the corporation named as Surety in said instrument, and acknowledged to me that he subsc ribed the name of said corporation thereto as Surety, and his own name as attorney-in-fact.

NOTE: Signature of those executing for
Surety must be properly
acknowledged.

NOTE: The Attorney -in-fact must attach a
certified copy of the Power of
Attorney.

Signature: _______________________________________________________________

Name (Type or Print): _____________________________________________________ Notary Public in and for said County and State

My Commission expires: __________________________________________________

PAYMENT BOND

WHEREAS, the City Council of the City of National City, by Resolution No. 20 26- _____, on the 16st day of J une, 2026 , has awarded RGC General Engineering, Inc., hereinafter designated as the "Principal", the N Ave Traffic Circles, CIP No. 25-08.

WHEREAS, said Principal is required by Chapter 5 (commencing at Section 3225) and Chapter 7 (commencing at Section 3247), Title 15, Part 4, Division 3 of the California Civil Code to furnish a bond in connection with said contract;

NOW, THEREFORE, we, the Principal and __________________________________ as surety, are held and firmly bound unto the City of National City, hereinafter called the "City", in the penal sum of Two -hundred and forty -two thousand, eight -hundred and sixty-nine dollars and zero cents ($242,869.00) dollars lawful money of the United States, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, executors, administrators and successors, jointly and severally, firmly by these presents.

THE CONDITION OF THIS OBLIGATION IS SUCH that if said Principal, his/her or its subcontractors, heirs, executors, administrators, successors, or assigns, shall fail to pay any of the persons named in Section 3181 of the California Civil Code, or amounts due under the Unemployment Insurance Code with respect to work or labor performed by any such claimant, or for any amounts required to be deducted, withheld, and paid over to the Franchise Tax Board from the wages of employees of the Contractor and his subcontractors pursuant to Section 18806 of the Revenue and Taxation Code, with respect to such work and labor the Surety will pay for the same in an amount not exceeding the sum hereinafter specified, and also, in case suit is brought upon this bond, a reasonable attorney's fee, to be fixed by the Court.

This Bond shall inure to the benefit of any of the persons named in Section 3181 of the California Civil Code, so as to give a right of action to such persons or their assigns in any suit brought upon this bond.

It is further stipulated and agreed that the Surety on this bond shall not be exonerated or released from the obligation of this bond by any change, extension of time for performance, addition, alteration or modificatio n in, to, or of any contract, plans, specifications, or agreement pertaining or relating to any scheme or work of improvement hereinabove described or pertaining or relating to the furnishing of labor, materials, or equipment therefore, not by any change o r modification of any terms of payment or extension of the time for any payment pertaining or relating to any scheme or work of improvement hereinabove described, nor by any rescission or attempted rescission of the contract, agreement or bond, nor by any conditions precedent or subsequent in the bond attempting to limit the right of recovery of claimants otherwise entitled to recover under any such contract or agreement or under the bond, nor by any fraud practiced by any person other than the claimant see king to recover on the bond and that this bond be construed most strongly against the Surety and in favor of all persons for whose benefit such bond is given, and under no circumstances shall Surety be released from liability to those for whose benefit such bond has been given, by reason of any breach of contract between the owner of Public Entity and original contractor or on the part of any obliges named in such bond, but the sole conditions of recovery shall be that claimant is a person described in Sect ion 3110 or 3112 of the California Civil Code, and has not been paid the full amount of his claim and that Surety does hereby waive notice of any such change, extension of time, addition, alteration or modification herein mentioned.

IN WITNESS WHEREOF three identical counterparts of this instrument, each of which shall for all purposes be deemed an original thereof, have been duly executed by the Principal and Surety above named, on the ________ day of _____________________, 20____.

____________________________(SEAL)

____________________________(SEAL)

____________________________(SEAL)

____________________________(SEAL)

____________________________(SEAL)

____________________________(SEAL)

Surety Principal

ATTORNEY-IN-FACT ACKNOWLEDGEMENT OF SURETY

STATE OF ______________________________ )
) ss
COUNTY OF _____________________________)

On this day _______ of __________________, 20____, before me, the undersigned, a Notary Public in and for said County and State, personally appeared ____________________________________________ known to me to be the person whose name is subscribed to the within instrument as the attorney -in-fact of the ____________________________________________, the corporation named as Surety in said instrument, and acknowledged to me that he subscribed the name of said corporation thereto as Surety, and his own name as attorney-in-fact.

NOTE: Signature of those executing for
Surety must be properly
acknowledged.

NOTE: The Attorney -in-fact must attach a
certified copy of the Power of
Attorney.

Signature:

Name (Type or Print):
(Notary Public in and for said County and State)

My Commission expires:

ATTACH ALL BONDS

RESOLUTION NO. 2026 -

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA, 1) AWARDING A CONTRACT TO RGC GENERAL ENGINEERING, INC. IN THE NOT -TO- EXCEED AMOUNT OF $242,869 FOR THE N AVENUE TRAFFIC CIRCLES, CIP NO. 25-08; 2) AUTHORIZING A 1 5% CONTINGENCY IN THE AMOUNT OF $36,430.35 FOR ANY UNFORESEEN CHANGES; AND 3) AUTHORIZING THE MAYOR TO EXECUTE THE CONTRACT.

WHEREAS, the N Avenue Traffic Circles project, CIP No. 25-08 (the “Project”) will install mini traffic circles at the intersections of N Avenue with E 20th Street and E 22nd Street , in response to resident complaints of speeding along the 2000 block of N Avenue and after performing site evaluations, collecting traffic data , reviewing roadway characteristics , and informing area residents of the proposed traffic calming solutions; and WHEREAS, on April 2, 2026, the bid solicitation for the Project was posted on PlanetBids, a free public electronic bidding system for contractors; and WHEREAS, on April 14th and April 22 nd, 2026, the bid solicitation was advertised in the local newspaper; and
WHEREAS on April 30, 2026, eight (8) bids were received by the 2:00 p.m. deadline; and WHEREAS, upon review of all documents submitted, RGC General Engineering, Inc.’s bid in the t otal bid amount of $242,869 was deemed responsive and they are the lowest responsible bidder qualified to perform the work as described in the Project specifications; and WHEREAS, City staff recommends 1) awarding a contract to RGC General Engineering, Inc. in the not-to-exceed amount of $242,869 for the N Avenue Traffic Circles, CIP No. 25-08; 2) authorizing a 15% contingency in the amount of $36,430.35 for any unforeseen changes; and 3) authorizing the Mayor to execute the contract.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS:

Section 1: That the City Council hereby authorizes the Mayor to execute the contract with RGC General Engineering, Inc. in the not-to-exceed amount of $242,869 for the N Avenue Traffic Circles, CIP No. 25-08.

Section 2: That the City Council hereby authorizes a 15% contingency in the amount of $36,430.35 for any unforeseen changes.

Section 3: That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions.

PASSED and ADOPTED this 30th day of June, 2026.

Ron Morrison, Mayor

ATTEST:

Shelley Chapel, MMC, City Clerk

APPROVED AS TO FORM:

Heidi Skinner, City Attorney

AGENDA REPORT

Department: Engineering and Public Works
Prepared by: Luca Zappiello, Principal Civil Engineer Meeting Date: Tuesday, June 30, 2026
Approved by: Douglas J. Schulze, City Manager

SUBJECT:

Awarding a Contract to Rove Engineering Inc. for the 8th and Roosevelt Active Transportation Corridor (PLA) CIP No. 19-44.

RECOMMENDATION:

Adopt a Resolution Entitled, “Resolution of the City Council of the City of National City, California, 1) Awarding a Contract to Rove Engineering, Inc. in the Not-To-Exceed Amount of $5,034,223.00 for the 8th and Roosevelt Active Transportation Corridor Project, CIP No. 19-44; 2) Authorizing a 10% Contingency in the Amount of $503,422.30 for any Unforeseen Changes; and 3) Authorizing the Mayor to Execute the Contract.”

BOARD/COMMISSION/COMMITTEE PRIOR ACTION:

Not Applicable.

EXPLANATION:

The 8th and Roosevelt Active Transportation Corridor Project, CIP No. 19 -44, will improve pedestrian and bicycle facilities along 8th Street (from the MTS trolley tracks to Roosevelt Avenue), Roosevelt Avenue (from 8th Street to Main Street), and Main Street (from Division Street to Yama Street) within the City of National City. The scope of work includes, but is not limited to, constructing a new shared-use path with a landscaped buffer; installing new lighting and electrical infrastructure; providing irrigation and landscaping improvements; enhancing drainage; and installing new signage and striping. Additional work includes roadway improvements such as asphalt paving and construction of new curbs and gutters. Exhibit A shows the project location.

On April 20, 2026, a bid solicitation was posted on PlanetBids, a free public electronic bidding system for contractors. On April 27, 2026, and April 28, 2026, the bid solicitation was advertised in the local newspaper. On May 29, 2026, eight (8) bids were received by the 5:00 p.m. deadline and Rove Engineering , Inc. was the apparent lowest bidder with a total bid amount of $5,034,223.00.

Upon review of all documents submitted, the bid submitted by Rove Engineering , Inc. was deemed responsive and they are the lowest responsible bidder qualified to perform the work as described in the project specifications.

Staff recommends awarding a contract to Rove Engineering, Inc., in the not-to-exceed amount of $5,034,223.00 and authorizing a 10% contingency in the amount of $503,422.30 to address any unforeseen conditions that may arise during construction.

Construction is estimated to be completed by Summer of 2027.

FINANCIAL STATEMENT:

Engineering Grants Fund
Expenditure Account # 296-10-18-18500-7598-6628296 (ATP Cycle 4) - $5,034,223.00 (contract award)

10% contingency:
 Engineering Grants Fund: Exp. Account #296-10-18-18500-7598-6628296 (ATP Cycle 4) - $50,767.00
 Gas Tax Fund: Exp. Account #109-10-18-18500-7598-6035109 (Street Resurfacing – SB1) - $452,655.30

RELATED CITY COUNCIL 2020-2025 STRATEGIC PLAN GOAL:

Transportation Choices and Infrastructure

ENVIRONMENTAL REVIEW:

The project is subject to NEPA and upon review by Caltrans was determined to qualify as a Categorical Exclusion pursuant to 23 USC 326 under 23 CFR 771.117(c).

PUBLIC NOTIFICATION:

The Agenda Report was posted at least 72 hours before the Regular Meeting date and time, and 24 hours before a Special Meeting in accordance with the Ralph M. Brown Act.

ORDINANCE:

Not Applicable

EXHIBITS:

Exhibit A - Location Map
Exhibit B - Bid Opening Summary
Exhibit C - Three Lowest Bidders Summary
Exhibit D - Owner-Contract Agreement
Exhibit E - Resolution

HOOVER AVEI-5 NBON-RAMP
I-5 SB OFF-RAMP8TH STREETI-5 SB ON-RAMP
MTS RAIL INTERSTATE5 SBINTERSTATE5 NB
INTERSTATE5 NBINTERSTATE5 SBI-5 SB OFF-RAMP
8TH STREET
ROOSEVELT AVEI-5 NBON-RAMP
7TH STREETROOSEVELT AVE5TH STREET4TH STREET
NORTH
NORTH
8TH AND ROOSEVELT ACTIVE TRANSPORTATION CORRIDOR

MATCHLINE SEE BELOW LEFTMATCHLINE SEE ABOVE RIGHT
MATCHLINE SEE SHEET 02

3RD STREETROOSEVELT AVE2ND STREET

DIVISION STREET
INTERSTATE5 NBINTERSTATE5 SBINTERSTATE 5 NB

NATIONAL CITYBLVD

YAMA STREETMAIN STREET
DIVISION STREETINTERSTATE5 NB
INTERSTATE5 SBUNITED STATESNAVAL BASE SAN DIEGOUNITED STATESNAVAL BASE SAN DIEGO

NATIONAL CITYBLVD
NORTH
NORTH
8TH AND ROOSEVELT ACTIVE TRANSPORTATION CORRIDOR
MATCHLINE SEE SHEET 01

BID OPENING SUMMARY

NAME: 8th and Roosevelt Active Transportation Corridor
(PLA)
CIP NO: 19-44
DATE: May 29, 2026
TIME: 5:00 P.M.

ESTIMATE: $6,000,000
PROJECT ENGINEER: Luca Zappiello

NO. BIDDER’S NAME BASE BID AMOUNT

1 Rove Engineering Inc.
398 E Aurora Dr.

El Centro, California 92243
$5,034,223.00

2 De La Fuente Construction, Inc
3025 Beyer Blvd Suite E-101
San Diego, California 92154
$5,471,906.07

3 Dick Miller Inc.
930 Boardwalk Suite H
San Marcos, California 92078
$5,694,545.94

4 Palm Engineering Construction Company,
7330 Opportunity Rd Suite A
San Diego, California 92111
$5,753,120.00

5 RGC General Engineering, Inc.
310 Davidson Street
Chula Vista, California 91910
$5,760,597.24
6 Hazard Construction Engr LLC
10529 Vine Street
Lakeside, California 92040
$5,988,117.00
7 Miramar General Engineering
1827 Cleveland Ave
National City, California 91950
$6,017,777,85
8 Griffith Company
13520 Evening Creek Drive North, Suite 400
San Diego, California 92128
$7,816,816.00

Nu
m
U
nit
Quanti
ty Description Unit Price Line Total Unit Price Line Total Unit Price Line Total 1 LS 1 Mobilization/Demobilizatio n $275,000 $275,000 $141,930 $141,930 $252,115 $252,115 2 LS 1 Project Schedule $9, 472 $9,472 $37,109 $37,109 $8,000 $8,000 3 LS 1 Surveying and Construction Staking $123,132 $123,132 $90,196 $90,196 $81,000 $81,000 4 LS 1 Signing and Striping $97,503 $97,503 $142,251 $142,251 $119,323 $119,323 5 LS 1 Traffic Control and Pedestrian Contr o $97,503 $97,503 $251,162 $251,162 $289,000 $289,000 6 LS 1 Clearing and Grubbing $68,611 $68,611 $54,852 $54,852 $208,000 $208,000 7 LS 1 Water Pollution Contro l $69,431 $69,431 $54,762 $54,762 $48,775 $48,775 8 SF 2460 Construct 4" PCC Sidewalk per SDRS
D $17 $41,820 $18 $45,461 $11 $27,675
9 EA 13 Construct Curb Ramp (All Ty pes) per $7,578 $98,514 $7,102 $92,322 $8,250 $107,250 10 EA 1 Construct Curb Ramp Type-A per Cit y $9,138 $9,138 $8,246 $8,246 $10,100 $10,100 11 SF 220 Furnish and Install Truncated Dome s $90 $19,800 $84 $18,418 $134 $29,480 12 SF 600 Construct Mountable Curb Truck Ap r $37 $22,200 $34 $20,112 $66 $39,600 13 LF 220 Construct AC Berm and Post Delinea t $95 $20,900 $89 $19,558 $85 $18,700 14 LS 1 Landscape and Irrigati on $319,624 $319,624 $566,944 $566,944 $340,000 $340,000 15 LS 1 Hardscape and Site Furnis hings $454,750 $454,750 $51, 540 $51,540 $395,000 $395,000 16 LF 1980 Construct 8" Curb per SDRSD G-01 $62 $122,760 $71 $140,045 $51 $100,980 17 LF 3110 Construct 6" Curb and Gutter per SD $72 $223,920 $70 $217,265 $71 $220,810 18 LF 400 Construct 8" Curb and Gutter per SD $87 $34,800 $92 $36,960 $98 $39,200 19 LF 980 Construct 6" Curb per SDRSD G-01 $56 $54,880 $66 $64,249 $48 $47,040 20 LF 460 Construct Variable Curb per Detail B $101 $46,460 $90 $41,469 $131 $60,260 21 LF 130 Construct Type-G Curb and Gutter p
e $167 $21,710 $97 $12,598 $89 $11,570
22 SF 2320 Construct Cross Gutter per SDRSD G - $27 $62,640 $27 $62,849 $26 $60,320 23 SF 2000 Construct Commercial Conc rete Driv $27 $54,000 $22 $44,000 $27 $54,000 24 SF 7530 Construct Thickened Edge Concrete S $39 $293,670 $26 $194,876 $31 $233,430 25 TO N 2450 Construct Asphalt Concrete Paveme n $146 $357,700 $388 $950,919 $207 $507,150 26 TO N 4590 Construct Class 2 Aggreg ate Base $35 $160,650 $71 $325,293 $74 $339,660 27 SY 4933 Furnish and Install Tens ar TX-160 Ge $10 $49,330 $10 $47,653 $14 $69,950 28 EA 1 Construct Type A Passagewa y per Ca $12,258 $12,258 $14,121 $14,121 $7,000 $7,000 29 SF 540 Construct 4" PCC Sidewalk per City o $17 $9,180 $19 $10,481 $12 $6,480 30 EA 4 Construct 4" PCC Accessible Pedestri $10,920 $43,680 $11,179 $44,715 $6,100 $24,400 Engineering & Public Works Department
De La Fuente
Construction, Inc 3025
Beyer Blvd Suite E-101
San Diego, California
Dick Miller Inc. 930
Boardwalk Suite H
San Marcos,
California 92078
Rove Engineering Inc.
398 E Aurora Dr. El
Centro, California
92243
8th and Roosevelt Active Transportation Corridor (PLA) CIP No. 19-44 Exhibit C - Three Lowest Bidders Summary
Bid Opening: May 29, 2026
Base Bid

Nu
m
U
nit
Quanti
ty Description Unit Price Line Total Unit Price Line Total Unit Price Line Total De La Fuente
Construction, Inc 3025
Beyer Blvd Suite E-101
San Diego, California
D
ick Miller Inc. 930
Boardwalk Suite H
San Marcos,
California 92078
Rove Engineering Inc.
398 E Aurora Dr. El
Centro, California
92243
31 EA 2 Construct 4" PCC Bike Access to Sha r $10,920 $21,840 $4,435 $8,869 $2,800 $5,600 32 LF 50 Construct 0" Curb and Gutter per SD $212 $10,600 $83 $4,169 $74 $3,700 33 LF 290 Construct Type A1-6 Curb per Caltra
n $114 $33,060 $77 $22,223 $75 $21,750
34 LF 100 Construct Type A2-6 Curb per Caltra n $201 $20,100 $101 $10,142 $135 $13,500 35 LF 200 Construct Type D-3 Curb per Caltran s $134 $26,800 $95 $18,932 $153 $30,600 36 EA 1 Install New Blowoff Valve Per Sweet w $11,391 $11,391 $9,131 $9,131 $6,900 $6,900 37 LF 200 Install Redwood Header $26 $5,200 $32 $6,444 $24 $4,800 38 EA 13 Construct Power Pole Protection pe
r $2,786 $36,218 $7,087 $92,128 $13,800 $179,400
39 SF 270 Construct Pin on Median Island per D $60 $16,200 $119 $32,044 $126 $34,020 40 LS 1 Unclassified Excavati on $175,000 $175,000 $26,414 $26,414 $280,000 $280,000 41 CY 500 Removal, disposal and replacement o $165 $82,500 $389 $194,250 $353 $176,500 42 LS 1 8th and Roosevelt Traffic Signal Mo d $42,344 $42,344 $32,213 $32,213 $41,040 $41,040 43 LS 1 Roosevelt and National City Blvd Ne w$499,211 $499,211 $515,403 $515,403 $483,840 $483,840 44 EA 10 Relocate Existing Type E St reet Light $5,014 $50, 140 $3,866 $38,655 $4,860 $48,600 45 EA 3 Relocate Existing Type F Str eet Light $5,014 $15,042 $3,866 $11,597 $4,860 $14,580 46 EA 4 Relocate Existing Type G Str eet Light $5,014 $20,056 $3,866 $15,462 $4,860 $19,440 47 EA 15 Furnish and Install Light St andard Ty $19,500 $292,500 $22,549 $338,233 $18,900 $283,500 48 EA 4 Electrical Point of Conne ction $8,375 $33,500 $838 $3,350 $8,100 $32,400 49 LF 2620 Electrical Conduit, Wiring , Trenching $54 $141,480 $63 $164,693 $43 $112,660 50 EA 32 Furnish and Install Electrical Pull Bo x $892 $28,544 $644 $20,616 $864 $27,648 51 EA 3 Construct Curb Outlet per SDRSD D-2 $19,509 $58,527 $5,741 $17,224 $8,100 $24,300 52 EA 2 Furnish and Install Sidewalk Underd r $15,237 $30,474 $5,192 $10,383 $1,100 $2,200 53 EA 1 Construct Type F Catch Basin per SD R $20,535 $20,535 $7,350 $7,350 $21,500 $21,500 54 EA 1 Construct Concre te Pipe Collar per SD $5,099 $5,099 $5,048 $5,048 $1,450 $1,450 55 LF 6 Install 36" RCP Pipe with Pipe Beddi n $1,547 $9,282 $1,724 $10,341 $925 $5,550 56 EA 1 Install L=32' Modified Type B Inlet p e $24,906 $24,906 $18,250 $18,250 $29,000 $29,000 57 EA 2 Install Modified Caltrans Ty pe G-2 In $20,535 $41,070 $15,050 $30,099 $11,900 $23,800 58 CY 4 Reconstruct Existing Concrete Chan n $1,892 $7,568 $1,472 $5,886 $2,500 $10,000 $5,694,545.94Total $5,034,223. 00 $5,471,906.07

OWNER - CONTRACTOR AGREEMENT

8th and Roosevelt Active Transportation Corridor (PLA) CIP No. 19-44

This Owner-Contractor Agreement (“Agreement”) is made by and between the City of National City, 1243 National City Boulevard National City, California 91950 and Rove Engineering Inc. (“Contractor”), 398 E Aurora Dr. El Centro, California 92243, on the 30th day of June 2026, for the construction of the above referenced Project.

In consideration of the mutual covenants and agreements set forth herein, the Owner and Contractor have mutually agreed as follows:

1. CONSTRUCTION

The Contractor agrees to do all the w ork and furnish all the labor, services, materials and equipment necessary to construct and complete the Project in a turn- key manner in accordance with this Agreement and all documents and plans referenced in Exhibit “A”, (hereinafter “Contract Documents ”), in compliance with all relevant Federal, State of California, County of San Diego and City of National City codes and regulations, and to the satisfaction of the Owner.

2. CONTRACT PRICE

Owner hereby agrees to pay and the Contractor agrees to ac cept as full compensation for constructing the project in accordance with these Contract Documents in an amount not to exceed the contract price as set forth in Exhibit “B” attached hereto and incorporated herein by reference. Payments to the Contractor shall be made in the manner described in the Special Provisions.

3. TIME FOR PERFORMANCE

Time is of the essence for this Agreement and the Contractor shall construct the project in every detail to a complete and turn-key fashion to the satisfaction of the Owner within the specified duration set forth in the Special Provisions.

4. NON-DISCRIMINATION

In the performance of this Agreement, the Contractor shall not refuse or fail to hire or employ any qualified person, or bar or discharge from employment any person, or discriminate against any person, with respect to such per son's compensation, terms, conditions or privileges of employment because of such person's race, religious status, sex or age.

5. AUTHORIZED OWNER REPRESENTATIVES

On behalf of the Owner, the Project Manager designated at the pre -construction meeting shall be the Owner’s authorized representative in the interpretation and enforcement of all Work performed in connection with this Agreement.

6. WORKERS' COMPENSATION INSURANCE

a) By my signature hereunder, as Contractor, I certify that I am aware of the provisions of Section 3700 of the Labor Code, which requires every employer to be insured against liability for Workers’ Compensation or to undertake self -insurance in accordance with the provisions of that Code, and I will comply with such provisions before commencing the performance of the Work of this Agreement.

b) The Contractor shall require each subcontractor to comply with the requirements of Section 3700 of the Labor Code. Before commencing any Work, the Contractor shall cause each subcontractor to execute the following certification:

"I am aware of the provisions of Section 3700 of the Labor Code, which requires every employer to be insured against liability for worker's compensation or to undertake self-insurance in accordance with the provisions of that Code, and I will comply with such provisions before commencing the performance of the Work of this Agreement."

7. ENTIRE AGREEMENT; CONFLICT

The Contract Documents comprise the entire agreement between the Owner and the Contractor with respect to the Work. In the event of conflict between the terms of this Agreement and the bid of the Contractor, then this Agreement shall control and nothing herein shall be considered as an acceptance of the terms of the bid conflicting herewith.

8. MAINTENANCE OF AGREEMENT DOCUMENTATION

Contractor shall maintain all books, documents, papers, employee time sheets, accounting records and other evidence pertaining to costs incurred and shall make such materials available at its office at all reasonable times during the term of this Agreement and for three (3) years from the date of final payment under this Agreement, for inspection by Owner and copies thereof shall be furnished to Owner if requested.

9. INDEPENDENT CONTRACTOR

At all times during the term of this Agreement, Contractor shall be an independent contractor and shall not be an employee, agent, partner or joint venturer of the Owner. Owner shall have the right to control Contractor insofar as the results of Contractor's services rendered pursuant to this Agreement; however, Owner shall not have the right to control the means by which Contractor accomplishes such services.

10. LICENSES AND PERMITS

Contractor represents and declares to Owner that it has all licenses, permits, qualifications and approvals of whatever nature which are legally required to practice its profession.

Contractor represents and warrants to Owner that Contractor shall, at its sole cost and expense, keep in effect at all times during the term of this Agreement, any licenses, permits, qualifications or approvals which are legally required for Contractor to practice its profession.

11. GOVERNING LAW, VENUE

This Agreement and the Contract Documents shall be construed under and in accordance with the laws of the State of California, and the appropriate venue for any action or proceeding arising from this Agreement and/or the Contract Documents shall be had in the Superior Court of San Diego, Central Branch.

12. COUNTERPARTS

This Agreement may be executed in any number of counterparts, each of which shall for all purposes be deemed to be an original.

13. FALSE CLAIMS

Contractor acknowledges that if a false claim is submitted to the Owner , it may be considered fraud and Contractor may be subject to criminal prosecution. Contractor acknowledges that the False Claims Act, California Government Code sections 12650, et seq., provides for civil penalties where a person knowingly submits a false claim to a public entity. These provisions include within their scope false claims made with deliberate ignorance of the false information or in reckless disregard of the truth or falsity of the information. In the event the Owner seeks to recover penalties pursuant to the False Claims Act, it is entitled to recover its litigation costs, including attorneys’ fees. Contractor hereby acknowledges that the filing of a false claim may the Contractor to an administrative debarment proceeding wherein Contract or may be prevented from further bidding on public contracts for a period of up to five (5) years.

I have read and understood all of the provisions of this Section 13, above:

(Initial) (Initial)

14. AGREEMENT MODIFICATION

This Agreement and the Contract Documents may not be modified orally or in any manner other than by an amendment in writing and signed by the Owner and the Contractor.

IN WITNESS WHEREOF this Agreement is executed as of the date first written above.

Owner: Contractor:

Rove Engineering Inc.

Ron Morrison
Mayor, City of National City (Owner/Officer signature)

Approved as to form:

Print name and title

Heidi Skinner
Interim City Attorney, City of National City

(Second officer signature if a corporation)

Print name and title

Contractor’s City Business License No.

State Contractor’s License No. and Class

Business street address

City, State and Zip Code

EXHIBIT A

CONTRACT DOCUMENTS

Owner/Contractor Agreement

Bid Schedule

Addenda

Plans

Special Provisions (Specifications)

San Diego County Regional Standard Drawings

City of National City Standard Drawings

Standard Specifications for Public Works Construction and Regional Supplements (Greenbook)

State Standard Specifications

State Standard Plans

California Building, Mechanical, Plumbing and Electrical Codes

Permits issued by jurisdictional regulatory agencies

Electric, gas, and communications companies specifications and standards

Sweetwater Authority specifications and standards

Specifications, standards and requirements of MTS, BNSF, SANDAG, Port of San Diego and all other agencies that may be adjacent and/or affected by the project.

EXHIBIT B

CONTRACT PRICE

City of National City
8th and Roosevelt Active Transportation Corridor (PLA) (CIP No. 19-44), bidding on 05/29/2026 5:00 PM (PDT)

Printed 06/09/2026
PlanetBids

City of National City
8th and Roosevelt Active Transportation Corridor (PLA) (CIP No. 19-44), bidding on 05/29/2026 5:00 PM (PDT)

Printed 06/09/2026
PlanetBids

City of National City
8th and Roosevelt Active Transportation Corridor (PLA) (CIP No. 19-44), bidding on 05/29/2026 5:00 PM (PDT)

Printed 06/09/2026
PlanetBids

CORPORATE CERTIFICATE

I, ___________________________________ certify that I am the Secretary of the Corporation named as Contractor in the foregoing Contract; that _____________________________________, who signed said contract on behalf of the Contractor, was then ______________________________________________ of said Corporation; that said contract was duly signed for and in behalf of said Corporation by authority of its governing body and is within the scope of its corporate powers.

I, ___________________________________ certify that I am the Secretary of the Corporation named as Contractor in the foregoing Contract; that _____________________________________, who signed said contract on behalf of the Contractor, was then _______________________________________________ of said Corporation; that said contract was duly signed for and in behalf of said Corporation by authority of its governing body and is within the scope of its corporate powers.

Corporate Seal:

PARTNERSHIP CERTIFICATE

STATE OF ______________________________)
) ss
COUNTY OF _____________________________)

On this __________ day of ___________, 20____, before me, the undersigned, a Notary Public in and for said County and State, personally appeared:

_____________________________________________________________

____________________________ (Notary Seal)

known to me to be _________________________________of the partners of the partnership that executed the within instrument, and acknowledged to me that such partnership executed the same.

Signature: _______________________________________________________________

Name (Type or Print): _____________________________________________________ (Notary Public in and for said County and State)

My Commission expires: __________________________________________________

PERFORMANCE BOND

WHEREAS, the City Council of the City of National City, by Resolution No. 2026 - __________, on the 30th day of June , 20 26, has awarded to Rove Engineering Inc. , hereinafter designated as the "Principal", the 8th and Roosevelt Active Transportation Corridor (PLA) CIP No. 19-44.

WHEREAS, said Principal is required under the terms of said contract to furnish a bond for the faithful performance of said contract.

NOW, THEREFORE, we, the Principal and
___________________________________________ as surety, are held and firmly bound unto the City of National City, hereinafter called the "City", in the penal sum of Five Million Thirty-Four Thousand Two Hundred Twenty-Three ($5,034,223.00) dollars lawful money of the United States, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, executors, administrators and successors, jointly and severally, firmly by these presents.

THE CONDITION OF THIS OBLIGATION IS SUCH THAT if the above bounden Principal, his/her or its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and agreements in the said contract any alteration thereof made as therein provides, on his or their part, to be kept and performed at the time and in the amount therein specified, and in all respects according to their true intent and meaning, and shall indemnify and save harmless the City of National City, its officers, agents, employees, and volunteers as therein stipulated, then this obligation shall become null and void; otherwise it shall be and remain in full force and virtue.

And the said Surety, fo r value received, hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the contract or to the work to be performed herein or the specifications accompanying the same shall in any wise affect its obligations on this bond, and it does hereby waive notice of any such

change, extension of time, alteration or additions to the terms of the contract or to the work or to the specifications.

In the event suit is brought upon this bond by the City and judgment is rec overed, the surety shall pay all costs incurred by the City in such suit, including a reasonable attorney's fee to be fixed by the Court.

IN WITNESS WHEREOF three identical counterparts of this instrument, each of which shall for all purposes be deemed an original thereof, have been duly executed by the

Principal and Surety above named, on the ________ day of ____________, 20____.

____________________________(SEAL)

____________________________(SEAL)

____________________________(SEAL)

____________________________(SEAL)

____________________________(SEAL)

____________________________(SEAL)

Surety Principal

PERFORMANCE BOND
AT

TORNEY-IN-FACT ACKNOWLEDGEMENT OF SURETY
ST
ATE OF ______________________________ )
) ss
COUNTY OF _____________________________)
O
n this______ day of ______________, 20____, before me, the undersigned, a Notary Public in and for said County and State, personally appeared ____________________________________________ known to me to be the person whose name is subscribed to the within instrument as the attorney -in-fact of the ____________________________________________, the corporation named as Surety in said instrument, and acknowledged to me that he subsc ribed the name of said corporation thereto as Surety, and his own name as attorney-in-fact.

NOTE: Signature of those executing for
Surety must be properly
acknowledged.

NOTE: The Attorney -in-fact must attach a
certified copy of the Power of
Attorney.

S
ignature: _______________________________________________________________ N
ame (Type or Print): _____________________________________________________ Notary Public in and for said County and State
M
y Commission expires: __________________________________________________

PAYMENT BOND
WHEREAS, the City Council of the City of National City, by Resolution No. 2026 - _________, on the 30th day of June , 2026 has awarded Rove Engineering Inc. , hereinafter designated as the "Principal”, the 8th and Roosevelt Active Transportation Corridor (PLA) CIP No. 19-44.

W
HEREAS, said Principal is required by Chapter 5 (commencing at Section 3225) and Chapter 7 (commencing at Section 3247), Title 15, Part 4, Division 3 of the California Civil Code to furnish a bond in connection with said contract; N
OW, THEREFORE, we, the Principal and __________________________________ as surety, are held and firmly bound unto the City of National City, hereinafter called the "City", in the penal sum of Five Million Thirty -Four Thousand Two Hundred Twenty - Three ($5,034,223.00) d ollars lawful money of the United States, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, executors, administrators and successors, jointly and severally, firmly by these presents.

T
HE CONDITION OF THIS OBLIGATION IS SUCH that if said Principal, his/her or its subcontractors, heirs, executors, administrators, successors, or assigns, shall fail to pay any of the persons named in Section 3181 of the California Civil Code, or amounts due under the Unemployment Insurance Code with respect to work or labor performed by any such claimant, or for any amounts required to be deducted, withheld, and paid over to the Franchise Tax Board from the wages of employees of the Contractor and his subcontractors pursuant to Section 18806 of the Revenue and Taxation Code, with respect to such work and labor the Surety will pay for the same in an amount not exceeding the sum hereinafter specified, and also, in case suit is brought upon this bond, a reasonable attorney's fee, to be fixed by the Court.

T
his Bond shall inure to the benefit of any of the persons named in Section 3181 of the California Civil Code, so as to give a right of action to such persons or their assigns in any suit brought upon this bond.

It is further stipulated and agreed that the Surety on this bond shall not be exonerated or released from the obligation of this bond by any change, extension of time for performance, addition, alteration or modification in, to, or of any contract, plans, specifications, or agreement pertaining or relating to any scheme or work of improvement hereinabove described or pertaining or relatin g to the furnishing of labor, materials, or equipment therefore, not by any change or modification of any terms of payment or extension of the time for any payment pertaining or relating to any scheme or work of improvement hereinabove described, nor by an y rescission or attempted rescission of the contract, agreement or bond, nor by any conditions precedent or subsequent in the bond attempting to limit the right of recovery of claimants otherwise entitled to recover under any such contract or agreement or under the bond, nor by any fraud practiced by any person other than the claimant seeking to recover on the bond and that this bond be construed most strongly against the Surety and in favor of all persons for whose benefit such bond is given, and under no circumstances shall Surety be released from liability to those for whose benefit such bond has been given, by reason of any breach of contract between the owner of Public Entity and original contractor or on the part of any obliges named in such bond, but the sole conditions of recovery shall be that claimant is a person described in Section 3110 or 3112 of the California Civil Code, and has not been paid the full amount of his claim and that Surety does hereby waive notice of any such change, extension of time, addition, alteration or modification herein mentioned.

IN WITNESS WHEREOF three identical counterparts of this instrument, each of which shall for all purposes be deemed an original thereof, have been duly executed by the Principal and Surety above named, on the ________ day of _____________________, 20____.

____________________________(SEAL)

____________________________(SEAL)

____________________________(SEAL)

____________________________(SEAL)

____________________________(SEAL)

____________________________(SEAL)

Surety Principal

ATTORNEY-IN-FACT ACKNOWLEDGEMENT OF SURETY

STATE OF ______________________________ )
) ss
COUNTY OF _____________________________)

On this day _______ of __________________, 20____, before me, the undersigned, a Notary Public in and for said County and State, personally appeared ____________________________________________ known to me to be the person whose name is subscribed to the within instrument as the attorney -in-fact of the ____________________________________________, the corporation named as Surety in said instrument, and acknowledged to me that he subscribed the name of said corporation thereto as Surety, and his own name as attorney-in-fact.

NOTE: Signature of those executing for
Surety must be properly
acknowledged.

NOTE: The Attorney -in-fact must attach a
certified copy of the Power of
Attorney.

Signature:

Name (Type or Print):
(Notary Public in and for said County and State)

My Commission expires:

ATTACH ALL BONDS

RESOLUTION NO. 2026 -

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA, 1) AWARDING A CONTRACT TO ROVE ENGINEERING , INC. IN THE NOT -TO-EXCEED AMOUNT OF $5,034,223.00 FOR THE 8TH AND ROOSEVELT ACTIVE TRANSPORTATION CORRIDOR PROJECT, CIP NO. 19 -44; 2) AUTHORIZING A 1 0% CONTINGENCY IN THE AMOUNT OF $503,422.30 FOR ANY UNFORESEEN CHANGES; AND 3) AUTHORIZING THE MAYOR TO EXECUTE THE CONTRACT.

WHEREAS, the 8th and Roosevelt Active Transportation Corridor Project, CIP No. 19-44 (the “Project”) will improve pedestrian and bicycle facilities along 8th Street (from the MTS trolley tracks to Roosevelt Avenue), Roosevelt Avenue (from 8th Street to Main Street), and Main Street (from Division Street to Yama Street) within the City of National City, with work including, but not limited to, constructing a new shared -use path with a landscaped buffer; installing new lighting and electrical infrastructure; providing irrigation and landscaping improvements; enhancing drainage; and installin g new signage and striping ; as well as roadway improvements such as asphalt paving and construction of new curbs and gutters; and WHEREAS, on April 20, 2026 , the bid solicitation for the Project was posted on PlanetBids, a free public electronic bidding system for contractors; and WHEREAS, on April 27th and April 28 th, 2026, the bid solicitation was advertised in the local newspaper; and
WHEREAS on May 29, 2026, eight (8) bids were received by the 5:00 p.m. deadline; and WHEREAS, upon review of all documents submitted, Rove Engineering, Inc.’s in the total bid amount of $5,034,223.00 was deemed responsive and they are the lowest responsible bidder qualified to perform the work as described in the Project specifications; and WHEREAS, City staff recommends 1) awarding a contract to Rove Engineering, Inc. in the not -to-exceed amount of $5,034,223.00 for the 8th and Roosevelt Active Transportation Corridor Project, CIP No. 19-44; 2) authorizing a 10% contingency in the amount of $503,422.30 for any unforeseen changes; and 3) authorizing the Mayor to execute the contract.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS:

Section 1: That the City Council hereby authorizes the Mayor to execute the contract with Rove Engineering , Inc. in the not -to-exceed amount of $5,034,223.00 for the 8th and Roosevelt Active Transportation Corridor Project, CIP No. 19-44.

Section 2: That the City Council hereby authorizes a 10% contingency in the amount of $503,422.30 for any unforeseen changes.

Section 3: That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions.

PASSED and ADOPTED this 30th day of June, 2026.

Ron Morrison, Mayor

ATTEST:

Shelley Chapel, MMC, City Clerk

APPROVED AS TO FORM:

Heidi Skinner, City Attorney

AGENDA REPORT

Department: Finance
Prepared by: Janel Pehau, Financial Analyst
Meeting Date: Tuesday, June 30, 2026
Approved by: Douglas J. Schulze, Acting Executive Director, Successor Agency

SUBJECT:

Successor Agency Multi-Year Budget for Fiscal Years 2026-27 through 2032-33

RECOMMENDATION:

Adopt the Resolution Entitled: “Resolution of the Board of the Successor Agency to the Community Development Commission as the National City Redevelopment Agency, California (Successor Agency), Adopting a Multi-Year Budget for Fiscal Years 2026-27 through 2032-33 that is Consistent with the Successor Agency’s Approved Last and Final ROPS.”

BOARD/COMMISSION/COMMITTEE PRIOR ACTION:

Not Applicable.

EXPLANATION:

Adopting a budget for the Successor Agency (SA) is not required under the redevelopment agency dissolution legislation, but is recommended by staff in the interest of practicality and transparency.

Expenditures for the SA are governed by the Recognized Obligation Payment Schedules (ROPS) that are annually proposed by the Successor Agency, approved by the Countywide Oversight Board, and submitted to the State Department of Finance (DOF) for authorization. Once certain conditions are met, successor agencies are allowed to submit a “Last and Final ROPS” that covers the obligations for all remaining periods. On October 21, 2025 (Resolution No. 2025-119), the Successor Agency Board approved the submittal of a Last and Final ROPS for the seven final years of the SA ’s obligations. On November 20, 2025, the Countywide Redevelopment Successor Agency Oversight Board approved the submittal of the SA’s Last and Final ROPS to the California State Department of Finance (DOF). On December 19, 2025, DOF issued its “Determination Letter” (see Exh ibit A) approving the SA’s Last and Final ROPS, but with a lesser amount allowed for administrative costs than was requested. The SA requested a total of $466,670 over the seven -year period, but DOF reduced that amount to $94,000.

The Last and Final ROPS sets the total amount of expenditures by purpose for each of the next seven years. Staff proposes that the SA Board adopt a matching multi-year budget in order to avoid future administrative costs for annual budget preparation and presentation to the Board. Exhibit B displays the proposed budget for each of the seven years. Expenditures are limited to scheduled debt service payments on the SA’s 2017 refunding bonds and payments to the City of National City for administrative services.

FINANCIAL STATEMENT:

The proposed multi-year budget provides for total expenditures of $ 24,701,550 over the seven-year Last and Final ROPS period that will be totally offset by Redevelopment Property Tax Trust Fund (RPTTF) revenues.

RELATED CITY COUNCIL 2020-2025 STRATEGIC PLAN GOAL:

Balanced Budget and Economic Development

ENVIRONMENTAL REVIEW:

This is not a project under CEQA and is therefore not subject to environmental review.CCR15378; PRC 21065.

PUBLIC NOTIFICATION:

The Agenda Report was posted at least 72 hours before the Regular Meeting date and time, and 24 hours before a Special Meeting in accordance with Brown Act.

ORDINANCE:

Not Applicable

EXHIBITS:

Exhibit A – DOF Determination Letter
Exhibit B – Successor Agency Proposed Multi-Year Budget FYs 2026-27 through 2032-33 Exhibit C – Resolution

December 19, 2025
Alejandro Hernandez, Acting Executive Director
National City
1243 National City Boulevard
National City, CA 91950
Last and Final Recognized Obligation Payment Schedule Determination Pursuant to Health and Safety Code (HSC) section 34191.6 (b), the National City Successor Agency (Agency) submitted a Last and Final Recognized Obligation Payment Schedule (Last and Final ROPS) to the California Department of Finance (Finance) on December 1, 2025. Finance has completed its review of the Agency’s Last and Final ROPS.

HSC section 34191.6 (c) authorizes Finance to make amendments or changes to the Last and Final ROPS if the changes are agreed to in writing by the Agency. The Agency has agreed in writing to the following changes made by Finance to the Agency’s Last and Final ROPS:
• Total requested administrative costs in the amount of $466,670 have been adjusted by $372,670 to $94,000. While the total administrative costs requested are within the fiscal year administrative cap, pursuant to HSC section 34171 (b) (2), the amount is excessive given the number and nature of the obligations listed on the Last and Final ROPS. Therefore, and with the Agency’s concurrence, Finance adjusted the Administrative Cost Allowance for the entire Last and Final ROPS to $94,000. Adjustments specific to each ROPS period are reflected in the approved Last and Final ROPS.

Finance is approving the Agency’s Last and Final ROPS with the above amendments and changes. These changes are reflected in the approved Last and Final ROPS.

The Agency’s maximum approved Redevelopment Property Tax Trust Fund (RPTTF) distribution for the Last and Final ROPS is $24,701,550, as summarized in the Approved RPTTF Distribution table (see Attachment).

http://www.dof.ca.gov/Programs/Redevelopment/ROPS/
Any agreed-upon amendments or changes are reflected in the approved Last and Final ROPS posted on the above website.

This is Finance’s determination related to the enforceable obligations reported on the Last and Final ROPS. HSC section 34191.6 (c) (2) allows agencies to submit no more than two requests to amend the approved Last and Final ROPS.

ROPS distributions will occur twice annually, one distribution for the July 1 through December 31 (ROPS A period), and one distribution for the January 1 through June 30 (ROPS B period). The Agency will receive RPTTF distributions up to the maximum approved amount on the Last and Final ROPS.

The Agency shall not expend more than the amount approved for each enforceable obligation listed and approved on the Last and Final ROPS. All unspent RPTTF received for enforceable obligations by the Agency should be retained for distribution to the affected taxing entities pursuant to HSC section 34191.6 (d) (2) (G). Further, any revenues, interest, and earnings of the Agency not authorized for use pursuant to the approved Last and Final ROPS shall be remitted to the County Auditor-Controller (CAC) pursuant to HSC section 34191.6 (c) (3). Pursuant to HSC section 34187 (e), once an agency has retired or paid off all enforceable obligations and all real property has been disposed of, the Agency is required to dispose of all remaining assets and remit any proceeds to the CAC for distribution to the affected taxing entities.

The amount available from the RPTTF is the same as the amount of property tax increment available prior to the enactment of the redevelopment dissolution statutes.

Therefore, as a practical matter, the ability to fund the items on the Last and Final ROPS with property tax is limited to the amount of funding available to the Agency in the RPTTF. However, HSC section 34191.6 (c) (5) provides mechanisms for the Agency to pay enforceable obligations if insufficient RPTTF is available on an approved Last and Final ROPS.

HSC section 34187 (b) defines the process of final dissolution of the Agency. When all enforceable obligations have been retired or paid off, all real property has been disposed of, and all outstanding litigation has been resolved, the Agency shall, within 30 days of meeting these conditions, submit to the Oversight Board (OB) a request to formally dissolve. The OB shall approve the request within 30 days and submit the request for Finance’s review.

Finance approved the Agency's annual ROPS 25-26 on March 21, 2025. Therefore, the Agency's most recent annual ROPS 25-26 approvals will remain effective through June 30, 2026, and funding approved through the Last and Final ROPS will commence with the ROPS 26-27 period.

Alejandro Hernandez
December 19, 2025

Please refer to the approved Last and Final ROPS schedule used to calculate the total RPTTF approved for distribution:

Becky Greene, Manager, Auditor-Controller, San Diego County Charissa Japlit, Countywide Oversight Board Representative Alejandro Hernandez
December 19, 2025

Please direct inquiries to [email protected].

Sincerely,
Cheryl L. McCormick, CPA
Chief, Office of State Audits and Evaluations
cc: Janel Pehau, Finance Analyst, National City

Attachment
Approved Last and Final ROPS
RPTTF Distributions
A Periods B Periods
ROPS Period RPTTF Admin RPTTF A Period Total RPTTF Admin RPTTF B Period Total Annual Total Total requested $ 23,759,838 $ 233,335 $ 23,993,173 $ 847,712 $ 233,335 $ 1,081,047 $ 25,074,220 Total adjustments 0 (186,335) (186,335) 0 (186,335) (186,335) (372,670) Totals 23,759,838 47,000 23,806,838 847,712 47,000 894,712 24,701,550 Total RPTTF approved for distribution
ROPS 26-27 3,463,125 8,000 3,471,125 241,660 8,000 249,660 3,720,785 ROPS 27-28 3,414,660 8,000 3,422,660 202,312 8,000 210,312 3,632,972 ROPS 28-29 3,446,313 8,000 3,454,313 162,085 8,000 170,085 3,624,398 ROPS 29-30 3,437,085 8,000 3,445,085 121,475 8,000 129,475 3,574,560 ROPS 30-31 3,469,475 5,000 3,474,475 79,792 5,000 84,792 3,559,267 ROPS 31-32 3,244,792 5,000 3,249,792 40,388 5,000 45,388 3,295,180 ROPS 32-33 3,284,388 5,000 3,289,388 0 5,000 5,000 3,294,388 Total $ 23,759,838 $ 47,000 $ 23,806,838 $ 847,712 $ 47,000 $ 894,712 $ 24,701,550 Alejandro Hernandez
December 19, 2025

Exhibit B

REVENUES
Account Number Account Title Notes FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 711-10-90-90100-3011- Tax Increment Revenue 1 3,672,320 $ 3,664,625 $ 3,615,170 $ 3,603,950 $ 3,334,584 $ 3,334,776 $ 5,000 $ 711-10-90-90100-3320- Interest Income - Loans 2 3,178 2,434 1,675 900 155 Total Revenue 3,675,498$ 3,667,059 $ 3,616,845 $ 3,604,850 $ 3,334,739 $ 3,334,776 $ 5,000 $

EXPENDITURES
Account Number Account Title Notes FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 711-10-90-90100-7210- City of National City 3 16,000 $ 16,000 $ 16,000 $ 16,000 $ 10,000 $ 10,000 $ 10,000 $ 711-10-90-90100-7480- Bond Interest Redemption 4 522,786 443,973 364,397 283,559 201,267 120,180 40,388 711-00-00-00000-2211- Long-Term Debt Payable 5 3,182,000 3,173,000 3,244,000 3,275,000 3,348,000 3,165,000 3,244,000 Total Expenditures 6 3,720,786$ 3,632,973 $ 3,624,397 $ 3,574,559 $ 3,559,267 $ 3,295,180 $ 3,294,388 $ NOTES

6. The amount of total expenditures is equal to the total Successor Agency obligations authorized to be paid for each respective fiscal/ROPS year.

5. Amounts shown as budgeted in this account reflect the principal portion of the debt service payments on the Successor Agency's 2017 refunding bonds. The principal payments are recorded on the balance sheet as reductions to long-term debts payable.

1. This account is used to record the Redevelopment Property Tax Trust Fund (RPTTF) monies (property taxes) that the County is authorized to distribute to the Successor Agency to meet the SA's obligations. Amounts are recorded in the fiscal year for which the property taxes are due to the County and received. RPTTF distributions are allocated such that successor agencies receive cash in advance of when obligations are due to be paid. Cash needed for July through December ("A" period) payments is distrbuted in June, one month before the beginning of the "A" period. Cash needed for January through June ("B" period) is distributed in January.

SUCCESSOR AGENCY TO THE COMMUNITY DEVELOPMENT COMMISSION

AS THE NATIONAL CITY REDEVELOPMENT AGENCY
LAST AND FINAL ROPS MULTI-YEAR BUDGET: FISCAL YEARS 2026-27 THROUGH 2032-33

2. Revenues recorded in this account are from interest payments related to the repayment of a loan made to the Mile of Cars Association in 2010 by the former Redevelopment Agency. Payments of $10,030.04 are made quarterly. The principal portion of the payment is recorded in the general ledger in the Loans Receivable account. None of these payments have been applied to the Last and Final ROPS, so once all of the Last and Final ROPS obligations have been met, the cash balance from these payments willl be distributed to the affected taxing entities.

3. Amounts budgeted in this account will be paid to the City of National City for administering the Successor Agency's financial activities.

4. Amounts budgeted in this account reflect the interest portion of the debt service payments on the Successor Agency's 2017 refunding bonds.

RESOLUTION NO. 2026 -

RESOLUTION OF THE BOARD OF THE SUCCESSOR AGENCY TO THE COMMUNITY

DEVELOPMENT COMMISSION AS THE NATIONAL CITY REDEVELOPMENT AGENCY ,

CALIFORNIA (NATIONAL CITY SUCCESSOR AGENCY) , ADOPTING A MULTI-YEAR BUDGET FOR FISCAL YEARS 2026 -27 THROUGH 2032 -33 THAT IS CONSISTENT WITH THE SUCCESSOR AGENCY’S APPROVED LAST AND FINAL ROPS.

WHEREAS, on October 21, 2025, (Resolution No. 2025-119), the Board of the National City Successor Agency approved the submittal of a Last and Final ROPS to the Countywide Redevelopment Successor Agency Oversight Board; and

WHEREAS, on November 20, 2025, the Countywide Redevelopment Successor Agency Oversight Board approved the National City Successor Agency ’s Last and Final ROPS and authorized its submittal to the California State Department of Finance (DOF); and

WHEREAS, on December 19, 2025, DOF issued its “Determination Letter” approving the National City Successor Agency’s Last and Final ROPS, but with a lesse r amount allowed for administrative costs than was requested; and
WHEREAS, the National City Successor Agency ’s Last and Final ROPS covers the seven-year period of fiscal years 2026-27 through 3032-33 and provides for total expenditures of $24,701,550 over that period; and
WHEREAS, successor agencies are not required to adopt an annual budget, but staff recommends doing so in the interest of practicality and transparency; and WHEREAS, the National City Successor Agency’s Executive Director has proposed that the Board adopt a multi-year budget for fiscal years 2026-27 through 2032-33 that is consistent with the authorized expenditures under the Last and Final ROPS in order to avoid administrative costs for annual budget preparation and presentation to the Board; and WHEREAS, said multi-year budget, presented in Exhibit B to the agenda report and incorporated herein by reference, has been discussed and deliberated in public session.

NOW, THEREFORE, THE BOARD OF THE SUCCESSOR AGENCY TO THE

COMMUNITY DEVELOPMENT COMMISSION AS THE NATIONAL CITY REDEVELOPMENT

AGENCY, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS:

Section 1: That the Board of the Successor Agency hereby adopts a multi-year budget for the Successor Agency for fiscal years 2026-27 through 2032-33 as presented in Exhibit B to the agenda report.

Section 2: That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions.

PASSED and ADOPTED this 30th day of June, 2026.

Ron Morrison, Chairman

ATTEST:

Shelley Chapel, MMC, City Clerk
as Secretary to the Successor Agency
APPROVED AS TO FORM:

Heidi Skinner
Successor Agency Counsel

AGENDA REPORT

Department: Engineering and Public Works
Prepared by: Ricardo Rodriguez, Associate Engineer-Civil Meeting Date: Tuesday, June 30, 2026
Approved by: Douglas J. Schulze, City Manager

SUBJECT:

Awarding a Contract to Palm Engineering Construction Company, Inc. for the 24th Street Sewer Improvements Project, CIP No. 25-21.

RECOMMENDATION:

Adopt a Resolution Entitled, “Resolution of the City Council of the City of National City, California, 1) Awarding a Contract to Palm Engineering Construction Company, Inc. in the Not-To-Exceed Amount of $3,983,370.03 for the 24th Street Sewer Improvements Project, CIP No. 2 5-21; 2) Authorizing a 15% Contingency in the Amount of $597,506 for any Unforeseen Changes; and 3) Authorizing the Mayor to Execute the Contract.”

BOARD/COMMISSION/COMMITTEE PRIOR ACTION:

Not Applicable.

EXPLANATION:

In anticipation of a major grant-funded capital project that will include street improvements on East 24th Street, staff pre-emptively evaluated the capacity and condition of the sewer main .

Future development and densification, per City planning documents, was also considered in the evaluation of the sewer main in E 24 th Street. The result of th at evaluation indicated that segments of the sewer were in need of replacement or upsizing. Performing the scope of work of this project in advance of the other would result in advantageous sequencing such that the paving could be completed once and not disrupted by the next project.

As a result of the evaluation and planning of future street improvements, the East 24th Street Sewer Improvements project, CIP 25-21, was designed and prioritized. The project will remove and replace the existing 6, 8, and 10-inch VCP sewer main with 8, 10, and 12 -inch PVC sewer main, respectively, along East 24th Street from National City Boulevard to N Ave. The project scope includes the removal and replacement of existing manholes , lateral connections , and installation of backwater valves.

On April 16, 2026, the bid solicitation was posted on PlanetBids, a free public electronic bidding system for contractors. On April 21, 2026 and April 27, 2026, the bid solicitation was advertised in the local newspaper. On May 1 4, 2026, six (6) bids were received by the 2:00 p.m. deadline and Palm Engineering Construction Company , Inc. was the apparent lowest bidder with a total bid amount of $3,983,370.03.

Upon review of all documents submitted, Palm Engineering Construction Company, Inc.’s bid was deemed responsive and they are the lowest responsible bidder qualified to perform the work as described in the project specifications.

Staff recommends awarding a contract to Palm Engineering Construction Company, Inc. in the not-to-exceed amount of $ 3,983,370.03 and authorizing a 15% contingency in the amount of $597,506 to address any unforeseen conditions that may arise.

Construction will begin in late Summer 2026 and is expected to be completed in Spring 2027.

FINANCIAL STATEMENT:

Funding is available in the Sewer Fund for this contract. Expenditures for this project will be recorded as follows:

Contract Award - $3,983,370.03
Expenditure Account No. 125-10-18-18500-7598-2024125 SEWER UPSIZING

15% Contingency - $597,506
Expenditure Account No. 125-10-18-18500-7598-2024125 SEWER UPSIZING

RELATED CITY COUNCIL 2020-2025 STRATEGIC PLAN GOAL:

Transportation Choices and Infrastructure

ENVIRONMENTAL REVIEW:

This is a project under CEQA subject to a Categorical Exemption. Existing Facilities. CCR 15301(c).

PUBLIC NOTIFICATION:

The Agenda Report was posted at least 72 hours before the Regular Meeting date and time, and 24 hours before a Special Meeting in accordance with the Ralph M. Brown Act.

ORDINANCE:

Not Applicable

EXHIBITS:

Exhibit A – Bid Opening Summary
Exhibit B – Summary of Bid Items
Exhibit C – Owner-Contractor Agreement
Exhibit D – Resolution

Exhibit A

BID OPENING SUMMARY

NAME: 24th Street Sewer Improvements
CIP NO: 25-21
DATE: May 14, 2026
TIME: 2:00 P.M.

ESTIMATE: $5,400,000
PROJECT ENGINEER: Ricardo Rodriguez

NO. BIDDER’S NAME BID AMOUNT BID SECURITY
- BOND
1 Palm Engineering Construction Co., Inc.
7330 Opportunity Road, Suite A
San Diego, CA 92111
$3,983,370.03 Bond
2 Burtech Pipeline, Inc.
1325 Pipeline Drive
Vista, CA 92081
$4,974,935.30 Bond
3 Dick Miller, Inc.
930 Boardwalk, Suite H
San Marcos, CA 92078
$5,277,777.77 Bond
4 SRK Engineering, Inc.
2615 Auto Park Way
Escondido, CA 92029
$5,390,856.94 Bond
5 Griffith Company
3050 E. Birch Street
Brea, CA 92821
$5,737,439.00 Bond
6 Rove Engineering
398 E Aurora Drive
El Centro, CA 92243
$5,968,784.20 Bond

Exhibit B

SUMMARY OF BID ITEMS

NAME: 24th Street Sewer Improvements
CIP NO: 25-21
DATE: May 14, 2026
TIME: 2:00 P.M.

ESTIMATE: $5,400,000
PROJECT ENGINEER: Ricardo Rodriguez

Item Description Unit Qty Unit Price Line Total Unit Price Line Total Unit Price Line Total 1 Mobilization/Demobilization LS 1 $133,000.00 $133,000.00 $200,000.00 $200,000.00 $166,965.23 $166,965.23 2 Water Pollution Control LS 1 $23,000.00 $23,000.00 $40,000.00 $40,000.00 $104,000.00 $104,000.00 3 Trench Shoring - Mainline and Manholes LS 1 $55,000.00 $55,000.00 $80,000.00 $80,000.00 $209,000.00 $209,000.00 4 Trench Shoring - Laterals EA 54 $135.00 $7,290.00 $555.00 $29,970.00 $518.00 $27,972.00 5 Dewatering Plan LS 1 $3,333.00 $3,333.00 $500.00 $500.00 $5,000.00 $5,000.00 6 Dewatering Mobilization/Demobilization LS 1 $5,333.00 $5,333.00 $500.00 $500.00 $13,000.00 $13,000.00 7 Dewatering and Treatment LS 1 $6,333.00 $6,333.00 $500.00 $500.00 $144,000.00 $144,000.00 8 Traffic Control LS 1 $73,000.00 $73,000.00 $250,000.00 $250,000.00 $230,000.00 $230,000.00 9 Utility Potholing and Coordination LS 1 $63,000.00 $63,000.00 $85,000.00 $85,000.00 $175,950.00 $175,950.00 10 Temporary Sewer Bypass Plan LS 1 $61,333.00 $61,333.00 $80,000.00 $80,000.00 $370,533.00 $370,533.00 11 Remove Existing 10" Sewer Main and Replace with 12" SDR35 PVC Sewer Main by Open Trench LF 60 $800.00 $48,000.00 $1,340.00 $80,400.00 $286.00 $17,160.00 12 Remove Existing 8" Sewer Main and Replace with 10" SDR35 PVC Sewer Main by Open Trench LF 2210 $283.00 $625,430.00 $375.00 $828,750.00 $258.00 $570,180.00 13 Remove Existing 6" Sewer Main and Replace with 8" SDR35 PVC Sewer Main by Open Trench LF 2223 $273.00 $606,879.00 $325.00 $722,475.00 $258.00 $573,534.00 14 Furnish and Install Sewer Lateral w/ Cleanout To ROW and Reconnect LF 2110 $181.33 $382,606.30 $220.00 $464,200.00 $212.70 $448,797.00 15 Furnish and Install Sewer Lateral Backwater Assembly EA 31 $5,933.00 $183,923.00 $2,700.00 $83,700.00 $4,000.00 $124,000.00 16 Remove and Replace Existing Manhole w/ 48" Manhole at 5' To 10' Deep EA 11 $18,033.00 $198,363.00 $29,800.00 $327,800.00 $28,000.00 $308,000.00 17 Remove and Replace Existing Manhole w/ 60" Manhole at 10' To 15' Deep EA 2 $25,000.00 $50,000.00 $32,000.00 $64,000.00 $38,000.00 $76,000.00 18 Remove and Replace/Relocate Existing Manhole #1959 W/ 60" Manhole EA 1 $28,000.00 $28,000.00 $33,000.00 $33,000.00 $55,000.00 $55,000.00 Palm Engineering
Construction Company, Inc. Burtech Pipeline, Inc. Dick Miller, Inc.

Exhibit B

19 Remove and Replace Existing Drop Manhole #961 W/ 60" Manhole and 2 Drops LS 1 $28,333.00 $28,333.00 $50,000.00 $50,000.00 $55,000.00 $55,000.00 20 Remove and Replace/Relocate Existing Drop Manhole #964 W/ 60" Manhole and 2 Drops LS 1 $28,333.00 $28,333.00 $42,500.00 $42,500.00 $52,000.00 $52,000.00 21 Remove and Replace Existing Drop Manhole #971 W/ 60" Manhole and 3 Drops LS 1 $33,000.00 $33,000.00 $62,000.00 $62,000.00 $54,000.00 $54,000.00 22 Remove and Replace Existing Drop Manhole #974 W/ 60" Manhole and 2 Drops LS 1 $30,300.00 $30,300.00 $46,700.00 $46,700.00 $50,000.00 $50,000.00 23 Remove and Replace PCC Curb LF 795 $60.33 $47,962.35 $25.00 $19,875.00 $68.00 $54,060.00 24 Remove and Replace PCC Gutter LF 795 $25.00 $19,875.00 $25.00 $19,875.00 $58.00 $46,110.00 25 Remove and Replace PCC Sidewalk SF 2650 $15.00 $39,750.00 $15.75 $41,737.50 $15.00 $39,750.00 26 Cold Milling Asphalt Pavement - 2" Depth SF 232862 $0.49 $114,102.38 $0.40 $93,144.80 $0.67 $156,017.54 27 2" Asphalt Concrete Finish Course w/ Forti-Fi or Equal TON 2984 $165.00 $492,360.00 $182.00 $543,088.00 $153.00 $456,552.00 28 4" Asphalt Concrete Base Course TON 340 $253.00 $86,020.00 $340.00 $115,600.00 $303.00 $103,020.00 29 Temporary and Permanent Pavement Striping and Markings LS 1 $39,333.00 $39,333.00 $41,000.00 $41,000.00 $38,830.00 $38,830.00 30 Truncated Domes SF 168 $80.00 $13,440.00 $70.00 $11,760.00 $94.00 $15,792.00 31 ADA Curb Ramp EA 31 $7,003.00 $217,093.00 $7,700.00 $238,700.00 $9,150.00 $283,650.00 32 4" PCC Sidewalk (Bus Boarding Area) SF 75 $95.00 $7,125.00 $58.00 $4,350.00 $25.00 $1,875.00 33 Removal, Disposal, and Replacement of Unsuitable Base/ Subgrade material CY 261 $131.00 $34,191.00 $200.00 $52,200.00 $240.00 $62,640.00 34 Remove and Replace Type E Loop, Limit Line Type F Loop, and Type C Bike Loop (Caltrans Standard Plan ES-5B) EA 10 $750.00 $7,500.00 $1,250.00 $12,500.00 $715.00 $7,150.00 35 Concrete Bus Pad (Greenbook Std Plan 131-3, Section B-B, 85'x10'8") SF 1700 $39.33 $66,861.00 $33.00 $56,100.00 $23.00 $39,100.00 36 Furnish and Install 2" Conduit LF 270 $55.00 $14,850.00 $58.00 $15,660.00 $55.00 $14,850.00 37 Furnish and Install 3" Conduit LF 120 $60.00 $7,200.00 $64.00 $7,680.00 $61.00 $7,320.00 38 Furnish and Install 4" Conduit LF 240 $66.00 $15,840.00 $70.00 $16,800.00 $66.00 $15,840.00 39 Furnish and Install 2" Conduit for Fiber Optic System LF 900 $49.50 $44,550.00 $52.00 $46,800.00 $50.00 $45,000.00 40 Furnish and Install Pull Box (No. 5, 6, 6E) EA 9 $1,100.00 $9,900.00 $1,150.00 $10,350.00 $1,100.00 $9,900.00 41 Furnish and Install Pull Box (No. 6T) EA 1 $1,980.00 $1,980.00 $2,070.00 $2,070.00 $1,980.00 $1,980.00 42 Furnish and Install 1" Conduit Stub-Out EA 3 $833.00 $2,499.00 $865.00 $2,595.00 $825.00 $2,475.00 43 Furnish and Install 2" Conduit Stub-Out EA 1 $833.00 $833.00 $865.00 $865.00 $825.00 $825.00 44 Furnish and Install 3" Conduit Stub-Out EA 4 $831.00 $3,324.00 $865.00 $3,460.00 $825.00 $3,300.00 45 Furnish and Install 4" Conduit Stub-Out EA 2 $831.00 $1,662.00 $865.00 $1,730.00 $825.00 $1,650.00 46 Slurry Backfill Sewer Lateral Where Within 5' of Water Lateral EA 5 $1,333.00 $6,665.00 $2,000.00 $10,000.00 $2,500.00 $12,500.00 47 Relocate Water Lateral Where Within 5' of Sewer Lateral EA 5 $2,933.00 $14,665.00 $7,000.00 $35,000.00 $5,500.00 $27,500.00 $3,983,370.03 $4,974,935.30 $5,277,777.77
$3,983,370.03 $4,974,935.30 $5,277,777.77Total
Subtotal

OWNER - CONTRACTOR AGREEMENT

24TH STREET SEWER IMPROVEMENTS PROJECT, CIP NO. 25-21

This Owner-Contractor Agreement (“Agreement”) is made by and between the City of National City, 1243 National City Boulevard National City, California 91950 and Palm Engineering Construction Company, Inc. (“Contractor”), 7330 Opportunity Road, Suite A, San Diego, CA 92111 on the 30th day of June , 2026, for the construction of the above referenced Project.

In consideration of the mutual covenants and agreements set forth herein, the Owner and Contractor have mutually agreed as follows:

1. CONSTRUCTION

The C ontractor agrees to do all the w ork and furnish all the labor, services, materials and equipment necessary to construct and complete the Project in a turn-key manner in accordance with this Agreement and all documents and plans referenced in Exhibit “A”, (hereinafter “Contract Documents ”), in compliance with all relevant Federal, State of California, County of San Diego and City of National Ci ty codes and regulations, and to the satisfaction of the Owner.

2. CONTRACT PRICE

Owner hereby agrees to pay and the Contractor agrees to ac cept as f ull compensation for constructing the project in accordance with these Contract Documents in an amount not to exceed the contract p rice as set forth in Exhibit “B” attached hereto and incorporated herein by reference. Payments to the Contractor shall be m ade in the manner described in the Special Provisions.

3. TIME FOR PERFORMANCE

Time is of the essence for this Agreement and the Contractor shall construct the project in every detail to a complete and turn- key fashion to the satisfaction of the Owner within the specified duration set forth in the Special Provisions.

4. NON-DISCRIMINATION

In the performance of this Agreement, the Contractor shall not refuse or fail to hire or employ any qualified person, or bar or discharge from employment any person, or discriminate against any person, with respect to such person's compensation, terms, conditions or privileges of employment because of such person's race, religious status, sex or age.

5. AUTHORIZED OWNER REPRESENTATIVES

On behalf of the Owner , the Project Manager designated at the pre -construction meeting shall be the Owner’s authorized representative in the interpretation and enforcement of all Work performed in connection with this Agreement.

6. WORKERS' COMPENSATION INSURANCE

a) By my signature hereunder, as Contractor, I certify that I am aware of the provisions of Section 3700 of the Labor Code, which requires every employer to be insured against liability for Workers’ Compensation or to undertake self -insurance in accordance with the provisions of that Code, and I will comply with such provisions before commencing the performance of the Work of this Agreement.

b) The Contractor shall require each subcontractor to comply with the requirements of Section 3700 of the Labor Code. Before commencing any Work, the Contractor shall cause each subcontractor to execute the following certification:

"I am aware of the provisions of Section 3700 of the Labor Code, which requires every employer to be insured against liability for worker's compensation or to undertake self-insurance in accordance with the provisions of that Code, and I will comply with such provisions before commencing the performance of the Work of this Agreement."

7. ENTIRE AGREEMENT; CONFLICT

The Contract Documents comprise the entire agreement between the Owner and the Contractor with respect to the Work. In the event of conflict between the terms of this Agreement and the bid of the Contractor, then this Agreement shall control and nothing herein shall be considered as an acceptance of the terms of the bid conflicting herewith.

8. MAINTENANCE OF AGREEMENT DOCUMENTATION

Contractor shall maintain all books, documents, papers, employee time sheets, accounting records and other evidence pertaining to costs incurred and shall make such materials available at its office at all reasonable times during the term of this Agreement and for three (3) years from the date of final payment under this Agreement, for inspection by Owner and copies thereof shall be furnished to Owner if requested.

9. INDEPENDENT CONTRACTOR

At all times during the term of this Agreement, Contractor shall be an independent contractor and shall not be an employee, agent, partner or joint venturer of the Owner .

Owner shall have the right to control Contractor insofar as the results of Contractor's

services rendered pursuant to this Agreement; however, Owner shall not have the right to control the means by which Contractor accomplishes such services.

10. LICENSES AND PERMITS

Contractor represents and declares to Owner that it has all licenses, permits, qualifications and approvals of whatever nature which are legally required to practice its profession. Contractor represents and warrants to Owner that Contractor shall, at its sole cost and expense, keep in effect at all times during the term of this Agreement, any licenses, permits, qualifications or approvals which are legally required for Contractor to practice its profession.

11. GOVERNING LAW, VENUE

This Agreement and the Contract Documents shall be construed under and in accordance with the laws of the State of California, and the appropriate venue for any action or proceeding arising from this Agreement and/or the Contract Documents shall be had in the Superior Court of San Diego, Central Branch.

12. COUNTERPARTS

This Agreement may be executed in any number of counterparts, each of which shall for all purposes be deemed to be an original.

13. FALSE CLAIMS

Contractor acknowledges that if a false claim is submitted to the Owner , it may be considered fraud and Contractor may be subject to criminal prosecution. Contractor acknowledges that the False Claims Act, California Government Code sections 12650, et seq., provides for civil penalties where a person knowingly submits a false claim to a public entity. These provisions include within their scope false claims made with deliberate ignorance of the false information or in reckless disregard of the truth or falsity of the information. In the event the Owner seeks to recover penal ties pursuant to the False Claims Act, it is entitled to recover its litigation costs, including attorneys’ fees. Contractor hereby acknowledges that the filing of a false claim may the Contractor to an administrative debarment proceeding wherein Contract or may be prevented from further bidding on public contracts for a period of up to five (5) years.

I have read and understood all of the provisions of this Section 15, above:

(Initial) (Initial)

14. AGREEMENT MODIFICATION

This Agreement and the Contract Documents may not be modified orally or in any manner other than by an amendment in writing and signed by the Owner and the Contractor.

IN WITNESS WHEREOF this Agreement is executed as of the date first written above.

Owner: Contractor:

Ron Morrison (Owner/Officer signature)
Mayor, City of National City

Attest: Print name and title

Heidi Skinner (Second officer signature if a corporation) Interim City Attorney, City of National City

Print name and title

Contractor’s City Business License No.

State Contractor’s License No. and Class

Business street address

City, State and Zip Code

EXHIBIT A

CONTRACT DOCUMENTS

Owner/Contractor Agreement

Bid Schedule

Addenda

Plans

Special Provisions (Specifications)

San Diego County Regional Standard Drawings

City of National City Standard Drawings

Standard Specifications for Public Works Construction and Regional Supplements (Greenbook)

State Standard Specifications

State Standard Plans

California Building, Mechanical, Plumbing and Electrical Codes

Permits issued by jurisdictional regulatory agencies

Electric, gas, and communications companies specifications and standards

Sweetwater Authority specifications and standards

Specifications, standards and requirements of MTS, BNSF, SANDAG, Port of San Diego and all other agencies that may be adjacent and/or affected by the project.

EXHIBIT B

CONTRACT PRICE

No. Item Description Unit Qty Unit Price Line Total
1 Mobilization/Demobilization LS 1 $133,000.00 $133,000.00 2 Water Pollution Control LS 1 $23,000.00 $23,000.00
3 Trench Shoring - Mainline and Manholes LS 1 $55,000.00 $55,000.00 4 Trench Shoring - Laterals EA 54 $135.00 $7,290.00
5 Dewatering Plan LS 1 $3,333.00 $3,333.00
6 Dewatering Mobilization/Demobilization LS 1 $5,333.00 $5,333.00 7 Dewatering and Treatment LS 1 $6,333.00 $6,333.00
8 Traffic Control LS 1 $73,000.00 $73,000.00
9 Utility Potholing and Coordination LS 1 $63,000.00 $63,000.00 10 Temporary Sewer Bypass Plan LS 1 $61,333.00 $61,333.00 11 Remove Existing 10" Sewer Main and Replace with 12" SDR35 PVC Sewer Main by Open Trench LF 60 $800.00 $48,000.00
12 Remove Existing 8" Sewer Main and Replace with 10" SDR35 PVC Sewer Main by Open Trench LF 2210 $283.00 $625,430.00
13 Remove Existing 6" Sewer Main and Replace with 8" SDR35 PVC Sewer Main by Open Trench LF 2223 $273.00 $606,879.00
14 Furnish and Install Sewer Lateral w/ Cleanout To ROW and Reconnect LF 2110 $181.33 $382,606.30 15 Furnish and Install Sewer Lateral Backwater Assembly EA 31 $5,933.00 $183,923.00 16 Remove and Replace Existing Manhole w/ 48" Manhole at 5' To 10' Deep EA 11 $18,033.00 $198,363.00 17 Remove and Replace Existing Manhole w/ 60" Manhole at 10' To 15' Deep EA 2 $25,000.00 $50,000.00 18 Remove and Replace/Relocate Existing Manhole #1959 W/ 60" Manhole EA 1 $28,000.00 $28,000.00 19 Remove and Replace Existing Drop Manhole #961 W/ 60" Manhole and 2 Drops LS 1 $28,333.00 $28,333.00
20 Remove and Replace/Relocate Existing Drop Manhole #964 W/ 60" Manhole and 2 Drops LS 1 $28,333.00 $28,333.00
21 Remove and Replace Existing Drop Manhole #971 W/ 60" Manhole and 3 Drops LS 1 $33,000.00 $33,000.00
22 Remove and Replace Existing Drop Manhole #974 W/ 60" Manhole and 2 Drops LS 1 $30,300.00 $30,300.00
23 Remove and Replace PCC Curb LF 795 $60.33 $47,962.35 24 Remove and Replace PCC Gutter LF 795 $25.00 $19,875.00 25 Remove and Replace PCC Sidewalk SF 2650 $15.00 $39,750.00 26 Cold Milling Asphalt Pavement - 2" Depth SF 232862 $0.49 $114,102.38 27 2" Asphalt Concrete Finish Course w/ Forti-Fi or Equal TON 2984 $165.00 $492,360.00 28 4" Asphalt Concrete Base Course TON 340 $253.00 $86,020.00 29 Temporary and Permanent Pavement Striping and Markings LS 1 $39,333.00 $39,333.00 30 Truncated Domes SF 168 $80.00 $13,440.00
31 ADA Curb Ramp EA 31 $7,003.00 $217,093.00
32 4" PCC Sidewalk (Bus Boarding Area) SF 75 $95.00 $7,125.00 33 Removal, Disposal, and Replacement of Unsuitable Base/ Subgrade material CY 261 $131.00 $34,191.00 34 Remove and Replace Type E Loop, Limit Line Type F Loop, and Type C Bike Loop (Caltrans Standard Plan ES-5B) EA 10 $750.00 $7,500.00

35 Concrete Bus Pad (Greenbook Std Plan 131-3, Section B-B, 85'x10'8") SF 1700 $39.33 $66,861.00 36 Furnish and Install 2" Conduit LF 270 $55.00 $14,850.00 37 Furnish and Install 3" Conduit LF 120 $60.00 $7,200.00 38 Furnish and Install 4" Conduit LF 240 $66.00 $15,840.00 39 Furnish and Install 2" Conduit for Fiber Optic System LF 900 $49.50 $44,550.00 40 Furnish and Install Pull Box (No. 5, 6, 6E) EA 9 $1,100.00 $9,900.00 41 Furnish and Install Pull Box (No. 6T) EA 1 $1,980.00 $1,980.00 42 Furnish and Install 1" Conduit Stub-Out EA 3 $833.00 $2,499.00 43 Furnish and Install 2" Conduit Stub-Out EA 1 $833.00 $833.00 44 Furnish and Install 3" Conduit Stub-Out EA 4 $831.00 $3,324.00 45 Furnish and Install 4" Conduit Stub-Out EA 2 $831.00 $1,662.00 46 Slurry Backfill Sewer Lateral Where Within 5' of Water Lateral EA 5 $1,333.00 $6,665.00 47 Relocate Water Lateral Where Within 5' of Sewer Lateral EA 5 $2,933.00 $14,665.00 $3,983,370.03
$3,983,370.03
Subtotal
Total

CORPORATE CERTIFICATE

I, ___________________________________ certify that I am the Secretary of the Corporation named as Contractor in the foregoing Contract; that _____________________________________, who signed said contract on behalf of the Contractor, was then ______________________________________________ of said Corporation; that said contract was duly signed for and in behalf of said Corporation by authority of its governing body and is within the scope of its corporate powers.

I, ___________________________________ certify that I am the Secretary of the Corporation named as Contractor in the foregoing Contract; that _____________________________________, who signed said contract on behalf of the Contractor, was then _______________________________________________ of said Corporation; that said contract was duly signed for and in behalf of said Corporation by authority of its governing body and is within the scope of its corporate powers.

Corporate Seal:

PARTNERSHIP CERTIFICATE

STATE OF ______________________________)
) ss
COUNTY OF _____________________________)

On this __________ day of ___________, 20 _, before me, the undersigned, a Notary Public in and for said County and State, personally appeared:

_____________________________________________________________

____________________________ (Notary Seal)

known to me to be _________________________________of the partners of the partnership that executed the within instrument, and acknowledged to me that such partnership executed the same.

Signature: _______________________________________________________________

Name (Type or Print): _____________________________________________________ (Notary Public in and for said County and State)

My Commission expires: __________________________________________________

PERFORMANCE BOND

WHEREAS, the City Council of the City of National City, by Resolution No. _______________, passed the 30th day of _ June_, 2026 has awarded to ___________________________________, hereinafter designated as the "Principal", the 24TH STREET SEWER IMPROVEMENTS, CIP No. 25-21.

WHEREAS, said Principal is required under the terms of said contract to furnish a bond for the faithful performance of said contract.

NOW, THEREFORE, we, the Principal and
___________________________________________ as surety, are held and firmly bound unto the City Council of the City of National City, hereinafter called the "Council", in the penal sum of
_______________________________________________________($______________) lawful money of the United States, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, executors, administrators and successors, jointly and severally, firmly by these presents.

THE CONDITION OF THIS OBLIGATION IS SUCH THAT if the above bounden Principal, his/her or its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perfo rm the covenants, conditions and agreements in the said contract any alteration thereof made as therein provides, on his or their part, to be kept and performed at the time and in the amount therein specified, and in all respects according to their true in tent and meaning, and shall indemnify and save harmless the City of National City, the City Council, their officers, agents, and employees, as therein stipulated, then this obligation shall become null and void; otherwise it shall be and remain in full force and virtue.

And the said Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the contract or to the work to be performed herein or the specifications accompanying the sa me shall in any wise affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or additions to the terms of the contract or to the work or to the specifications.

In the event suit is brought upo n this bond by the City of National City and judgment is recovered, the surety shall pay all costs incurred by the Council in such suit, including a reasonable attorney's fee to be fixed by the Court.

IN WITNESS WHEREOF three identical counterparts of this instrument, each of which shall for all purposes be deemed an original thereof, have been duly executed by the

Principal and Surety above named, on the ________ day of ____________, 20_.

____________________________(SEAL)

____________________________(SEAL)

____________________________(SEAL)

____________________________(SEAL)

____________________________(SEAL)

____________________________(SEAL)

Surety Principal

PERFORMANCE BOND

ATTORNEY-IN-FACT ACKNOWLEDGEMENT OF SURETY

STATE OF ______________________________ )
) ss
COUNTY OF _____________________________)

On this______ day of ______________, 20_, before me, the undersigned, a Notary Public in and for said County and State, personally appeared ____________________________________________ known to me to be the person whose name is subscribed to the within instrument as the attorney -in-fact of the ____________________________________________, the corporation named as Surety in said instrument, and acknowledged to me that he subscribed the name of said corporation thereto as Surety, and his own name as attorney-in-fact.

NOTE: Signature of those executing for
Surety must be properly
acknowledged.

NOTE: The Attorney -in-fact must attach a
certified c opy of the Power of
Attorney.

Signature: _______________________________________________________________

Name (Type or Print): _____________________________________________________ Notary Public in and for said County and State

My Commission expires: __________________________________________________

PAYMENT BOND

WHEREAS, the City Council of the City of National City, by Resolution No. ________________, passed the 30th day of _ June_, 2026 has awarded ________________________________________________, hereinafter designated as the "Principal”, the 24th Street Sewer Improvements, CIP No. 25-21.

WHEREAS, said Principal is required by Chapter 5 (commencing at Section 3225) and Chapter 7 (commencing at Section 3247), Title 15, Part 4, Division 3 of the California Civil Code to furnish a bond in connection with said contract;

NOW, THEREFORE, we, the Principal and __________________________________ as surety, are held and firmly bound unto the City Council of the City of National City, hereinafter called the "Council", in the penal sum of
____________________________________________ lawful money of the United States, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, executors, administrators and successors, jointly and severally, firmly by these presents.

THE CONDITION OF THIS OBLIGATION IS SUCH that if said Principal, his/her or its subcontractors, heirs, executors, administrators, successors, or assigns, shall fail to pay any of the pe rsons named in Section 3181 of the California Civil Code, or amounts due under the Unemployment Insurance Code with respect to work or labor performed by any such claimant, or for any amounts required to be deducted, withheld, and paid over to the Franchis e Tax Board from the wages of employees of the Contractor and his subcontractors pursuant to Section 18806 of the Revenue and Taxation Code, with respect to such work and labor the Surety will pay for the same in an amount not exceeding the sum hereinafter specified, and also, in case suit is brought upon this bond, a reasonable attorney's fee, to be fixed by the Court.

This Bond shall inure to the benefit of any of the persons named in Section 3181 of the California Civil Code, so as to give a right of ac tion to such persons or their assigns in any suit brought upon this bond.

It is further stipulated and agreed that the Surety on this bond shall not be exonerated or released from the obligation of this bond by any change, extension of time for performa nce, addition, alteration or modification in, to, or of any contract, plans, specifications, or agreement pertaining or relating to any scheme or work of improvement hereinabove described or pertaining or relating to the furnishing of labor, materials, or equipment therefore, not by any change or modification of any terms of payment or extension of the time for any payment pertaining or relating to any scheme or work of improvement hereinabove described, nor by any rescission or attempted rescission of the contract, agreement or bond, nor by any conditions precedent or subsequent in the bond attempting to limit the right of recovery of claimants otherwise entitled to recover under any such contract or agreement or under the bond, nor by any fraud practiced b y any person other than the claimant seeking to recover on the bond and that this bond be construed most strongly against the Surety and in favor of all persons for whose benefit such bond is given, and under no circumstances shall Surety be released from liability to those for whose benefit such bond has been given, by reason of any breach of contract between the owner of Public Entity and original contractor or on the part of any obliges named in such bond, but the sole conditions of recovery shall be that claimant is a person described in Section 3110 or 3112 of the California Civil Code, and has not been paid the full amount of his claim and that Surety does hereby waive notice of any such change, extension of time, addition, alteration or modification herein mentioned.

IN WITNESS WHEREOF three identical counterparts of this instrument, each of which shall for all purposes be deemed an original thereof, have been duly executed by the Principal and Surety above named, on the ________ day of _____________________, 20_.

____________________________(SEAL)

____________________________(SEAL)

____________________________(SEAL)

____________________________(SEAL)

____________________________(SEAL)

____________________________(SEAL)

Surety Principal

ATTORNEY-IN-FACT ACKNOWLEDGEMENT OF SURETY

STATE OF ______________________________ )
) ss
COUNTY OF _____________________________)

On this day _______ of __________________, 20 _, before me, the undersigned, a Notary Public in and for said County and State, personally appeared ____________________________________________ known to me to be the person whose name is subscribed to the within instrument as the attorney -in-fact of the ____________________________________________, the corporation named as Surety in said instrument, and acknowledged to me that he subscribed the name of said corporation thereto as Surety, and his own name as attorney-in-fact.

NOTE: Signature of those executing for
Surety must be properly
acknowledged.

NOTE: The Attorney -in-fact must attach a
certified copy of the Power of
Attorney.

Signature:

Name (Type or Print):
(Notary Public in and for said County and State)

My Commission expires:

ATTACH ALL BONDS

RESOLUTION NO. 2026 -

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA, 1) AWARDING A CONTRACT TO PALM ENGINEERING CONSTRUCTION COMPANY, INC. IN THE NOT -TO-EXCEED AMOUNT OF $ 3,983,370.03 FOR THE 24TH STREET SEWER IMPROVEMENTS PROJECT, CIP NO. 2 5-21; 2) AUTHORIZING A 15% CONTINGENCY IN THE AMOUNT OF $ 597,506 FOR ANY UNFORESEEN CHANGES; AND 3) AUTHORIZING THE MAYOR TO EXECUTE THE CONTRACT.

WHEREAS, the 24th Street Sewer Improvements project, CIP No. 25 -21 (the “Project”) will remove and replace the existing 6, 8, and 10 -inch VCP sewer main with 8, 10, and 12 -inch PVC sewer main, respectively, along E 24th Street from National City Boulevard to N Ave; and

WHEREAS, on April 16, 2026, the bid solicitation for the Project was posted on PlanetBids, a free public electronic bidding system for contractors; and

WHEREAS, on April 21st and April 27th, 2026, the bid solicitation was advertised in the local newspaper; and

WHEREAS, on May 14, 2026, six (6) bids were received by the 2:00 p.m. deadline; and

WHEREAS, upon review of all documents submitted, Palm Engineering Construction Company, Inc.’s bid in the total bid amount of $3,983,370.03 was deemed responsive and they are the lowest responsible bidder qualified to perform the work as described in the Project specifications; and

WHEREAS, City staff recommends 1) awarding a contract to Palm Engineering Construction Company, Inc. in the not to -exceed amount of $3,983,370.03 for the 24th Street Sewer Improvements project, CIP No. 25-21; 2) authorizing a 15% contingency in the amount of $597,506 for any unforeseen changes; and 3) authorizing the Mayor to execute the contract.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS:

Section 1: That the City Council hereby authorizes the Mayor to execute the contract with Palm Engineering Construction Company, Inc. in the not-to-exceed amount of $3,983,370.03 for the 24th Street Sewer Improvements project, CIP No. 25-21.

Section 2: That the City Council hereby authorizes a 15% contingency in the amount of $597,506 for any unforeseen changes.

Section 3: That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions.

PASSED and ADOPTED this 30th day of June, 2026.

Ron Morrison, Mayor
ATTEST:

Shelley Chapel, MMC, City Clerk
APPROVED AS TO FORM:

Heidi Skinner, City Attorney

AGENDA REPORT

Department: City Manager's Office
Prepared by: Daniel Gonzalez, Council Representative
Meeting Date: Tuesday, June 30, 2026
Approved by: Douglas J. Schulze, City Manager

SUBJECT:

Temporary Use Permit – Meeting of Styles Hosted by Vision Culture Foundation at 1726 Wilson Ave. on Sunday, July 19th, 2026, from 9:00 a.m. to 7:00 p.m.

RECOMMENDATION:

Approve the Application for a Temporary Use Permit Subject to Compliance with all Conditions of Approval and in Accordance with City Council Policy 802.

BOARD/COMMISSION/COMMITTEE PRIOR ACTION:

Not Applicable.

EXPLANATION:

The Meeting of Styles event is an internationally recognized street art competition that brings together artists from around the world to create large scale murals through live painting and creative collaboration. This event is proposed to take place at 1726 Wilson Ave. in National City, utilizing the space beneath the highway as an activated art venue. There will be barriers placed around the construction sites to avoid anyone from tampering with the ongoing construction. By hosting the competition at this location, the event will create a vibrant, community centered environment where residents and visitors can experience international artists at work while celebrating creativity, cultural exchange and the continued expansion of public art in the city.

FINANCIAL STATEMENT:

The exact fiscal impact associated with City support services has not yet been finalized. Staffing and operational require ments continue to be coordinated among City departments and participating agencies. Any costs associated with the event will be determined through the final review process and assessed in accordance with applicable City regulations.

RELATED CITY COUNCIL 2020-2025 STRATEGIC PLAN GOAL:

Balanced Budget and Economic Development

ENVIRONMENTAL REVIEW:

This is not a project under CEQA , and is therefore , not subject to environmental review.

CCR15378; PRC 21065.

PUBLIC NOTIFICATION:

The Agenda Report was posted at least 72 hours before the Regular Meeting date and time, and 24 hours before a Special Meeting in accordance with the Ralph M. Brown Act.

ORDINANCE:

Not Applicable

EXHIBITS:

Exhibit A – Temporary Use Permit – Meeting of Styles
Exhibit B – Meeting of Styles Traffic Control Plan
Exhibit C – Meeting of Styles Traffic Event Map
Exhibit D - Caltrans Encroachment Permit Application
Exhibit E - Caltrans Encroachment Permit Bill

10 I. Special Event Information

Special Events
Pre-Event Storm Water Compliance
Checklist

Name of Special Event:

Event Address: Expected # of Attendees:

Event Host/Coordinator: Phone Number: _____________________

II. Storm Water Best Management Practices (BMPs) Review

YES NO  N/A

Will enough trash cans provided for the event?
Provide number of trash bins:

Will enough recycling bins provided for the event?
Provide number of recycle bins:

Will all portable toilets have secondary containment trays? (exceptions for ADA compliant portable toilets)

Do all storm drains have screens to temporarily protect trash and debris from entering?

Are spill cleanup kits readily available at designated spots?

* A Post-Event Storm Water Compliance Checklist will be completed by City Staff.

Meeting of Styles
1726 Wilson Ave.

The City of National City
619-731-9619
20 ✔
20 ✔
✔
✔
✔

11 City of National City

PUBLIC PROPERTY USE HOLD HARMLESS AND INDEMNIFICATION

AGREEMENT

Persons requesting use of City property, facilities or personnel are required to provide a minimum of $1,000,000 combined single limit insurance for bodily injury and property damage which includes the City, its officials, agents and employees named as additional insured and to sign the Hold Harmless Agreement. Certificate of insurance must be attached to this permit. The insurance company issuing the insurance policy must have a A.M. Best’s Guide Rating of A:VII and that the insurance company is a California admitted company; if not, then the insurance policy to the issuance of the permit for the event. The Certificate Holder must reflect:

City of National City
Risk Management Department
1243 National City Boulevard
National City, CA 91950

Organization:

Person in Charge of Activity:

Address:

Telephone: Date(s) of Use:

HOLD HARMLESS AGREEMENT

As a condition of the issuance of a temporary use permit to conduct its activities on public or private property, the undersigned hereby agree(s) to defend, indemnify and hold harmless the City of National City and the Parking Authority and its officers, employees and agents from and against any and all claims, demands, costs, losses, liability or, for any personal injury, death or property damage, or both, or any litigation and other liability, including attorney’s fees and the costs of litigation, arising out of or related to the use of public property or the activity taken under the permit by the permittee or its agents, employees or contractors.

Signature of Applicant:

Official Title: Date:

Certificate of Insurance Approved Date
Vision Culture Foundation
Ryan Johnson (VCF)
2440 Highland Ave. National City CA, 91950
6197319619 / 6192474592
5/4/26
Executive Asisstant III
5/4/26

C
o
n
s
t
r
u
c
t
i o
n
C o n s t r u c t i o n
Description of event:

The Meeting of Styles event is an internationally recognized street art competition that brings together artists from around the world to create large scale murals through live painting and creative collaboration.

This event is proposed to take place at 1726 Wilson Ave. in National City. Utilizing the space beneath the highway as an activated art venue. Their will be barriers placed around the construction sites to avoid anyone from tampering with the ongoing construction. By hosting the competition at this location, the event will create a vibrant, community centered environment where residents and visitors can experience international artists at work while celebrating creativity, cultural exchange and the continued expansion of public art in the city.

Limits and Time of the Requested Closure:

The proposed closure will occur on 17th Street through Wilson Avenue, and on 18th street from Wilson to Mckinley.

Additionally, The northbound I-5 onramp will be fully closed to vehicular access during the duration of the event to prevent unauthorized entry onto the freeway. The closure will be in place on July 19 with setup beginning at 9:00 AM.

Full closure will be maintained throughout the event, with cleanup concluding at 7:00 PM the same day. Traffic control will be implemented in accordance with 2025 Caltrans Standard Plans. Advance notification will be provided to the surrounding community regarding the road closures prior to the event.

S
t
a
g
e

C
o
n
s t r u
c t i o
n
C o n s t r u c t i o n
Merchandise
Vendor

LIVE PAINTING
Live
Performances

FOOD & DRINK
Vendor
Restrooms
Traffice flow
S
t
a
g
e

Copyright 2018 California Department of Transportation. All rights reserved.

Americans with Disabilities Act (ADA) Notice: This document is available in alternative accessible formats. For more information, please contact the Forms Management Unit at (279) 234-2284, TTY 711, in writing at Forms Management Unit, 1120 N Street, MS-89, Sacramento, CA 95814, or by email at [email protected].

SD

1. COUNTY
005

2. ROUTE
R10.45

3. POST MILE
1726 Wilson Ave. National City CA. 91950

4. ADDRESS OR STREET NAME
National City

5. CITY
Wilson and 18th St. & 19th and Mckinley Ave.

6. CROSS STREET (Distance and direction from project site)

7. WORK TO BE PERFORMED BY

APPLICANT CONTRACTOR

8. IS THIS APPLICATION FOR A RIDER?
YES.NO If "YES", provide the Parent Permit Number
July 19, 2026

9. ESTIMATE START DATE
July 19, 2026

10. ESTIMATED COMPLETION DATE
1 11. ESTIMATED NUMBER OF WORKING DAYS WITHIN STATE HIGHWAY RIGHT-OF-WAY $0.0

12. ESTIMATED CONSTRUCTION COSTS WITHIN STATE HIGHWAY RIGHT-OF-WAY

13. HAS THE PROJECT BEEN REVIEWED BY ANOTHER CALTRANS BRANCH? YES.NO If "YES", which branch?

14. FUNDING SOURCE(S)
FEDERAL STATE LOCAL PRIVATE SB 1 (ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017)

15. CALTRANS PROJECT CODE (ID)
N/A

16. APPLICANT'S REFERENCE / UTILITY WORK ORDER NUMBER
STATE OF CALIFORNIA • DEPARTMENT OF TRANSPORTATION

STANDARD ENCROACHMENT PERMIT APPLICATION
DOT TR-0100 (REV 08/2025)
Complete ALL fields, write "N/A" if not applicable. Type or print clearly.

This application is not complete until all requirements have been approved.

Permission is requested to encroach on the State Highway right-of-way as follows:

FOR CALTRANS USE
11-26-X-XX-0501
TRACKING NO.
11/SD/005/PM R10.45

DIST/CO/RTE/PM

SIMPLEX STAMP

DATE OF SIMPLEX STAMP

The Meeting of Styles event is an internationally recognized street art competition that brings together artists from around the world to create large-scale murals through live painting and creative collaboration.

This event is proposed to take place at 1726 Wilson Ave in National City, utilizing the space beneath the highway as an activated art venue. By hosting the competition at this location, the event will create a vibrant, community-centered environment where residents and visitors can experience international artists at work while celebrating creativity, cultural exchange, and the continued expansion of public art in the city.

17. DESCRIBE WORK TO BE DONE WITHIN STATE HIGHWAY RIGHT-OF-WAY (in 20 lines or less) Attach 6 complete sets of plans (folded to 8.5" x 11") and any applicable specifications, calculations, maps, traffic control plans, etc. 18 (a). PORTION OF STATE HIGHWAY RIGHT-OF-WAY WHERE WORK IS BEING PROPOSED (check all that apply) Traffic lane Shoulder Sidewalk Median At or near an intersection Mobile work Outside of the shoulder, 0.0 feet from edge of pavement Other 18 (b). PROPOSED TRAFFIC CONTROL PLANS AND METHOD
No traffic control needed State Standard Plans (T-Sheets) # Project specific Traffic Control Plans included To be submitted by contractor

STATE OF CALIFORNIA • DEPARTMENT OF TRANSPORTATION

STANDARD ENCROACHMENT PERMIT APPLICATION
DOT TR-0100 (REV 08/2025) 11-26-X-XX-0501
TRACKING NO.

Americans with Disabilities Act (ADA) Notice: This document is available in alternative accessible formats. For more information, please contact the Forms Management Unit at (279) 234-2284, TTY 711, in writing at Forms Management Unit, 1120 N Street, MS-89, Sacramento, CA 95814, or by email at [email protected].

EXCAVATION

19. 0.0000
MAX. DEPTH (in)

0.0000
MIN. DEPTH (in)

0.0000
AVG. WIDTH (in)

0.0000
LENGTH (ft)
N/A
SURFACE TYPE (e.g. Asphalt, concrete, soil, etc.)
PIPES

20. N/A

PRODUCT BEING TRANSPORTED CARRIER PIPE

0.0000DIAMETER N/AMATERIAL(in.)

CASING PIPE

0.0000DIAMETER N/AMATERIAL(in.)
N/A
PROPOSED INSTALLATION METHOD (e.g. HDD, Bore & Jack, Open Cut, etc.) N/A

VOLTAGE / PSIG

21. IS A CITY, COUNTY OR OTHER PUBLIC AGENCY INVOLVED IN THE APPROVAL OF THIS PROJECT? DOES THE PROPOSED PROJECT INVOLVE THE REPLACEMENT AND/OR ABANDONMENT OF AN EXISTING FACILITY? YES.NO If "YES", provide a description
YES (if "YES", check the type of project AND attach the environmental documentation and conditions of approval) NO (if "NO", check the category below which best describes the project AND answer questions A-K)

COMMERCIAL DEVELOPMENT BUILDING GRADING OTHER

CATEGORICALLY EXEMPT NEGATIVE DECLARATION ENVIRONMENTAL IMPACT REPORT OTHER SE - Special Event
Not Applicable

DRIVEWAY OR ROAD APPROACH, RECONSTRUCTION,

MAINTENANCE OR RESURFACING

FENCE EROSION CONTROL

PUBLIC UTILITY MODIFICATION, EXTENSIONS, HOOKUPS MAILBOX LANDSCAPING

FLAGS, SIGNS, BANNERS, DECORATIONS, PARADES AND CELEBRATIONS OTHER The following questions must be answered when a City, County or other public agency IS NOT involved in the approval of this project.

Your answers to these questions will assist Caltrans staff in identifying any physical, biological, social or economic resources that may be affected by your proposed project within State Highway right-of-way and to determine which type of environmental studies may be required to approve your application for an encroachment permit. It is the applicant's responsibility for the production of all required environmental documentation and supporting studies and in some cases this may be costly and time consuming. If possible, attach photographs of the location of the proposed project. Answer these questions to the best of your ability. Provide a description of any "YES" answers (type, name, number, etc.).

No
A. Will any existing vegetation and/or landscaping within State Highway right-of-way be disturbed? No
B. Are there waterways (e.g. river, creek, pond, natural pool or dry streambed) adjacent to or within the limits of the proposed project? No
C. Is the proposed project located within five miles of the coast line? No
D. Will the proposed project generate construction noise levels greater than 86 decibels (dBA) (e.g. Jack-hammering, pile driving)? No
E. Will the proposed project incorporate land from a public park, recreation area or wildlife refuge open to the public? No
F. Are there any recreational trails or paths within the limits of the proposed project? No
G. Will the proposed project impact any structures, buildings, rail lines or bridges within State Highway right-of-way? No
H. Will the proposed project impact access to any businesses or residences? No
I. Will the proposed project impact any existing public utilities or public services? No
J. Will the proposed project impact any existing pedestrian facilities, such as sidewalks, crosswalks or overcrossings? No
K. Will new lighting be constructed within or adjacent to State Highway right-of-way?

STATE OF CALIFORNIA • DEPARTMENT OF TRANSPORTATION

STANDARD ENCROACHMENT PERMIT APPLICATION
DOT TR-0100 (REV 08/2025) 11-26-X-XX-0501
TRACKING NO.

Americans with Disabilities Act (ADA) Notice: This document is available in alternative accessible formats. For more information, please contact the Forms Management Unit at (279) 234-2284, TTY 711, in writing at Forms Management Unit, 1120 N Street, MS-89, Sacramento, CA 95814, or by email at [email protected].

22. Will the proposed project cause a substantial change in the significance of a historical resource (45 years or older), or cultural resource? YES NO (if "YES", provide a description)

23. Will the proposed project be on an existing State Highway or street where the activity involves removal of a scenic resource? (e.g. A significant tree or stand of trees, a rock outcropping or a historic building) YES NO (if "YES", provide a description)

24. Is work being done on the applicant's property in addition to State Highway right-of-way? YES NO (If "YES", attach 6 complete sets of site and grading plans)

25. Will the proposed project require the disturbance of soil? YES NO

0.0000If "YES", estimate the area of disturbed soil within State Highway right-of-way in acres:

0.0000and estimate the area of disturbed soil outside State Highway right-of-way in acres:

26. Will the proposed project require dewatering? YES NO N/AIf "YES", estimate Total gallons AND gallons/month. N/A(Total gallons) AND (gallons/month) SOURCE*: STORMWATER NON-STORMWATER
(*See Caltrans SWMP for definition of non-storm water discharge:
https://www.dot.ca.gov/programs/environmental-analysis/stormwater-management-program)

27. How will any storm water or ground water be disposed? Storm Drain System Combined Sewer / Stormwater System Stormwater Retention Basin N/A Other (explain)

STATE OF CALIFORNIA • DEPARTMENT OF TRANSPORTATION

STANDARD ENCROACHMENT PERMIT APPLICATION
DOT TR-0100 (REV 08/2025) 11-26-X-XX-0501
TRACKING NO.

Americans with Disabilities Act (ADA) Notice: This document is available in alternative accessible formats. For more information, please contact the Forms Management Unit at (279) 234-2284, TTY 711, in writing at Forms Management Unit, 1120 N Street, MS-89, Sacramento, CA 95814, or by email at [email protected].

READ THE FOLLOWING CLAUSES PRIOR TO SIGNING THIS ENCROACHMENT PERMIT APPLICATION.

The applicant’s submission of this application to the California Department of Transportation constitutes the applicant’s agreement and representation that the work or other activity contemplated by the encroachment permit application shall comply with all applicable standards, specifications, policies, requirements, conditions, and regulations of the California Department of Transportation, and the applicant understands the application may be denied if there is non-compliance with any of the above. An exception process exists and may result in approval of a non- compliant encroachment, in the discretion of the California Department of Transportation, but the exception process may require additional time to complete. The applicant understands and agrees all work or other activity contemplated by the encroachment permit application is subject to inspection and oversight by the California Department of Transportation. The applicant understands and agrees encroachment permit fees must still be paid if an application is withdrawn or denied. The applicant understands a denial may be appealed, in accordance with California Streets and Highways Code, Section 671.5, and the related regulations found in California Code of Regulations, Title 21, Division 2, Chapter 8, Article 2.

The applicant understands and agrees that immediately upon issuance of the encroachment permit the applicant is bound by, subject to, and must comply with the "Encroachment Permit General Provisions" (TR-0045), "Stormwater Special Provisions" (TR-0400) and any other applicable Special Provisions and Conditions of the encroachment permit. The "Encroachment Permit General Provisions" (TR-0045), and the Stormwater Special Provisions (TR-0400) are available at:

If a paper copy is needed of the "Encroachment Permit General Provisions" (TR-0045) and/or "Stormwater Special Provisions" (TR-0400), please contact the District Office of Encroachment Permits. Their contact information is available at:

The "Encroachment Permit General Provisions" (TR-0045) and any other applicable Special Provisions and Conditions will be provided as part of the encroachment permit. Information about Stormwater requirements is available at the Internet address:

The applicant understands an encroachment permit may be denied, revoked, and/or a bond may be required, for non-payment of prior or present encroachment permit fees. An encroachment permit is not a property right and does not transfer with the property to a new owner.

Each of the persons purporting to execute this application on behalf of the applicant and/or on behalf of the applicant’s authorized agent or engineer represents and warrants such person has full and complete legal authority to do so and to thereby bind applicant to the terms and conditions herein and to the terms and/or conditions of the encroachment permit. Applicant understands and agrees this application may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Executed copies of this application and/or its counterparts may be reproduced and/or exchanged by copy machine, mailing, facsimile, or electronic means (such as e- mail), and such copies shall be deemed to be effective as originals. https://dot.ca.gov/-/media/dot-media/programs/traffic-operations/documents/encroachment-permits/appendix- k-ada-a11y.pdf.
https://dot.ca.gov/programs/traffic-operations/ep/district-contacts. https://dot.ca.gov/programs/environmental-analysis/stormwater-management-program.

The City of National City

28. NAME OF APPLICANT (Project or Property Owner or Organization) 1243 National City Blvd National City CA 91950
ADDRESS OF APPLICANT (Include City, State and Zip Code) [email protected]

E-MAIL ADDRESS
(619)731-9619

PHONE NUMBER FAX NUMBER

29. NAME OF AUTHORIZED AGENT / ENGINEER / APPLICANT'S EMPLOYEE (A "Letter of Authorization" is required if different from #28)

IS A LETTER OF
AUTHORIZATION ATTACHED?
YES NO
ADDRESS OF AUTHORIZED AGENT / ENGINEER (Include City, State and Zip Code)

E-MAIL ADDRESS PHONE NUMBER FAX NUMBER

30. NAME OF BILLING CONTACT (Same as #28 Same as #29 )
BILLING ADDRESS WHERE INVOICE(S) IS / ARE TO BE MAILED (Include City, State and Zip Code)

E-MAIL ADDRESS PHONE NUMBER FAX NUMBER
I hereby certify under penalty of perjury under the laws of the State of California that the information in this application and any document submitted with or in support of this application are true and correct to the best of my knowledge and belief, and that copies of any documents submitted with or in support of this application are true and correct copies of unaltered original documents. I further understand that if I have provided information that is false, intentionally incomplete, or misleading I may be charged with a crime and subjected to fine or imprisonment, or both fine and imprisonment. (Penal Code Section 72)
*
Daniel Gonzalez

31. SIGNATURE OF APPLICANT OR AUTHORIZED AGENT*
Daniel Gonzalez

32. PRINT OR TYPE NAME

33. TITLE
5/18/2026

34. DATE

STATE OF CALIFORNIA • DEPARTMENT OF TRANSPORTATION

STANDARD ENCROACHMENT PERMIT APPLICATION
DOT TR-0100 (REV 08/2025)
Americans with Disabilities Act (ADA) Notice: This document is available in alternative accessible formats. For more information, please contact the Forms Management Unit at (279) 234-2284, TTY 711, in writing at Forms Management Unit, 1120 N Street, MS-89, Sacramento, CA 95814, or by email at [email protected].

INSTRUCTIONS
Complete ALL fields, write "N/A" if not applicable. Type or print clearly. All dimensions must be in U.S. Customary (English) units.

Print your application single sided and submit all of the required attachments (See Section VII A&B of the "Encroachment Permit Application Guide Booklet" found at: https://dot.ca.gov/programs/traffic-operations/ep/guidelines).

1. County (e.g. Fresno, San Francisco, Los Angeles, etc.)

2. State Highway Route Number (e.g. I-5, SR-99, etc.)

3. Highway Postmile: (location of work, see https://postmile.dot.ca.gov/) If unable to determine, contact the appropriate District Encroachment Permits Office for assistance at: https://dot.ca.gov/programs/traffic- operations/ep/district-contacts

4. Address of project site (if the property has a physical address with a Number and Street/Road Name)

5. City (e.g. Sacramento, Redding, Irvine, etc.)

6. Distance and the direction from the nearest cross street to the project site (e.g. 500 ft. north of "C" Street).

7. Indicate whether the work will be performed by the applicant (your own forces) or by a contractor.

8. Indicate if you are applying for a "Rider Permit" (Time extension, change in scope of work, etc. and provide the “Parent Permit Number”.

9. Estimated start date for the proposed work. (Allow a minimum of 60 calendar days from the submittal date of your application for processing)

10. Estimated completion date for the proposed work.

11. Estimated number of working days within State Highway right-of-way.

12. Estimated construction costs for all work to be done within State Highway right-of-way.

13. Has another Caltrans' branch seen or reviewed your project? Which branch? (e.g. Design, Project Management, Right-of-Way, Environmental, etc.)

14. Identify funding source(s) for the proposed work.

15. Caltrans’ Project Code (ID) if this is a State project, capital project, or joint venture project.

16. Your company’s reference number or utility work order number for this project.

17. Describe the proposed work to be done entirely. If applicable, attach six (6) complete sets of FOLDED plans (folded 8-½” X 11”) and any applicable specifications, calculations, maps, etc.

18. (a) Identify portion(s) of State right-of-way where work will occur and (b) proposed traffic control plans to be used if any.

19. Maximum and minimum depth, average width, and length of the excavation area. Existing surface type (e.g. Asphalt, concrete, soil, etc.)

20. Product being transported (e.g. water, natural gas, etc.) Carrier pipe, diameter (inches) and material (e.g. Steel, HDPE, etc.) Casing pipe (if any), diameter and material Proposed installation method, Voltage of electrical current or pressure of liquid or gas.

Replacement and/or abandonment of an existing facility (e.g. Abandoning pipe and filling it with two-sack slurry cement)

21. Check “YES”, if you are getting a permit or approval from another agency (City, County, etc.), and an environmental determination has been made.

Then check the Categorically Exempt, Negative Declaration, Environmental Impact Report box or Other if one has been prepared.

Attach a copy of the approved document and a copy of the Notice of Determination. Skip questions A-K.

If you checked “NO”, check the box of the appropriate type of work to be done,or check “other” and fill in the type of work to be done. Also answer questions A-K.

22. A Historical Resource includes, but is not limited to, any object, building, structure, site, area, place, record, or manuscript that has historical or archaeological significance, or significance in the architectural, engineering, scientific, economic, agricultural, educational, social, political, military, or cultural annals of California.

23. In this context a Scenic Resource includes, but is not limited to, trees that display outstanding features of form or age; unique, massive rock formations; historic buildings that are rare examples of their period, style, design, or which have special architectural features and details of importance.

24. Is there any work being done on the applicant’s property?

25. Indicate if the proposed project will require the disturbance of soil. If “YES,” estimate the area within AND outside of State Highway right-of-way in acres.

26. Indicate if the proposed project will require dewatering. If “YES,” estimate volume in total gallons AND gallons per month. Also indicate the source: Stormwater or Non-Stormwater (see Caltrans Stormwater Management Plan for definitions of non-stormwater discharge at:
https://dot.ca.gov/programs/environmental-analysis/stormwater- management-program).

27. Indicate how any stormwater or ground water will be disposed of from or near the limits of the proposed project.

28. Name of the applicant or organization applying for the permit. List the mailing address, e-mail address, phone and fax numbers.

29. Name of the authorized agent or engineer acting on behalf of the applicant or organization. Attach a letter of authorization signed by the applicant or organization. List the mailing address, e-mail address, phone and fax numbers.

30. Name of the billing contact. List the mailing address where invoices are to be mailed, email address, phone and fax numbers.

31. Signature of the applicant or applicant's authorized agent.

32. Name of the applicant or applicant's authorized agent.

33. Title (owner, president, etc.) of the applicant or applicant's authorized agent.

34. Date of the signature.

Americans with Disabilities Act (ADA) Notice: This document is available in alternative accessible formats. For more information, please contact the Forms Management Unit at (279) 234-2284, TTY 711, in writing at Forms Management Unit, 1120 N Street, MS-89, Sacramento, CA 95814, or by email at [email protected].

N/A

WORK ORDER / REFERENCE NUMBER RELATED PERMITS
The City Of National City

PERMITTEE NAME
The Meeting of Styles event is an internationally recognized street art competition that brings together artists from around the world to create large-scale murals through live painting and creative collaboration.

This event is proposed to take place at 1726 Wilson Ave in National City, utilizing the space beneath the highway as

DESCRIPTION OF WORK

INSPECTOR'S COMMENTS

ACTUAL INSPECTION
HOURS BY 0

PERMIT INSPECTOR
0 CONSTRUCTION R.E.
0 OTHER CALTRANS UNITS
Completion Notice. To the best of my knowledge, all work was completed on (date) in compliance with the permit.

Y N N/A Required final project completion records for structures. Y N N/A Structure As-Built plans Y N N/A Required final project completion records for roadway. Y N N/A Roadway As-Built plans Progress Bill Quarter No.:

Permit Cancelled
Work is not complete (explain)

INSPECTOR'S SIGNATURE DATE

FOR PERMIT OFFICE USE

FINAL BILL RELEASE CASH DEPOSIT PERFORMANCE BOND ATTACHED

PROGRESS BILL OTHER

ACTUAL HOURS
(NOT FOR BILLING)
0Review Hours
0Inspection Hours
0Field Work Hours

COMMENTS
COPIES TO:

Accounts Receivable (Billing / Refund)
Local Agency (Agreement Work)
Maintenance

BILLING / REFUND INFORMATION
FEE TYPE: SF AX
0Review 0.00Hours @ $ 0.00= $
0Inspection 0.00Hours @ $ 0.00= $
0Field Work 0.00Hours @ $ 0.00= $

0.00Equipment/Materials = $

0.00TOTAL FEES = $
FEE DEPOSIT PAID ON (DATE) 0.00$
Cash Credit Card Check (Check No.)
FEE DEPOSIT PAID ON (DATE) 0.00$
Cash Credit Card Check (Check No.)

0.00TOTAL DEPOSITS = $
Final Bill BALANCE DUE = 0.00$
Progress Bill REFUND = 0.00$
REFUND OF CASH DEPOSIT IN LIEU OF BOND 0.00$
CASH DEPOSIT PAID ON (Date)
Cash Credit Card Check (Check No.)
The City Of National City, 1243 National City Blvd, National City, CA, 91950, (619)731-9619

NAME AND ADDRESS TO BE USED FOR BILLING/REFUND
Joy Lee

PERMIT ENGINEER
(619)688-6653

PHONE NUMBER
5/18/2026
DATE
STATE OF CALIFORNIA • DEPARTMENT OF TRANSPORTATION

PROGRESS BILLING/PERMIT CLOSURE
TR-0129 (REV 07/2013)

UNIT NUMBER
11-26-X-XX-0501

PERMIT NUMBER RIDER
11/SD/005/PM R10.45

DIST/CO/RTE/PM

AGENDA REPORT

Department: Community Development
Prepared by: Angelita Palma, Community Development Manager Meeting Date: Tuesday, June 30, 2026
Approved by: Douglas J. Schulze, City Manager

SUBJECT:

Memorandum of Agreement with Community HousingWorks for the Paradise Creek Enhancement Project FY 2025-2029 Multi-Year Plan Utilizing Program Income.

RECOMMENDATION:

Adopt the Resolution Entitled, “Resolution of the City Council of the City of National, California, 1) Authorizing the City Manager or his Designee to Execute a Memorandum of Agreement with Community HousingWorks for the Paradise Creek Enhancement Project FY 2025 -2029 Multi- Year Plan for Program Income , and 2) Authorizing the Establ ishment of an Appropriation and Corresponding Revenue Budget in the Amount of $1,570,000 in the Reimbursable Grants Citywide Fund for the Paradise Creek Enhancement Project.”

BOARD/COMMISSION/COMMITTEE PRIOR ACTION:

CDC Resolution 2011-135, Paradise Creek Apartments Phase I Agreement SA Resolution 2015-70, Paradise Creek Apartments Phase II Agreement

EXPLANATION:

OVERVIEW
Community HousingWorks (“CHW”) seeks to enter into a Memorandum of Agreement ("MOA" or "Agreement” - “Exhibit A”) with the City of National City (“City”) to carry out activities in the CHW Paradise Creek Enhancement Project FY 2025 -2029 Multi -Year Plan for Program Income (“Multi-Year Plan” or “Plan” - “Exhibit B”) to primarily benefit of the residents of the Paradise Creek Apartment Project (“Project”) and of the community of which the Project is a part of commonly known as Paradise Creek, Westside, and Old Town National City (collectively, “Community”). The Multi-Year Plan is CHW’s thoughtful, strategic, and transparent approach for the use of Program Income funds generated from the Paradise Creek Apartments, Phases I and II, and consistent with the requirements of the Transit -Oriented Infill Affordable Housing and Paradise Creek Enhancement Project Grant Agreements (“Grant Agreements”).

The Multi-Year Plan covers the period from July 1, 2024 , through June 30, 2029, and includes funding for capital improvement projects (CIP) to spend down accumulated Program Income.

Annual operating cost s for the Paradise Creek Community Ga rden have been awarded to the nonprofit organizations Olivewood Gardens and Mundo Gardens. To leverage the Program Income funds, CHW seeks to grant funds to the City’s Community Service Department to implement Project - and Program -Related Activities identi fied in the Multi -Year Plan, thereby leveraging resources and maximizing the impact of funding for the Community. The Multi-Year Plan Funding also has a set -aside for Plan administration and an anticipated amount of future

Program Income to fund ongoing Co mmunity Services Programming, the Paradise Creek Community Garden, and administration through FY 2029.

The Multi -Year Plan will be further implemented in subsequent Fiscal Years through the submission of Annual Plans. Annual Plans will include eligible activities per the Multi-Year Plan and funding amounts corresponding to the actual receipt of Program Income for each prior year.

BACKGROUND
The Transit-Oriented Infill Affordable Housing and Paradise Creek Enhancement Project, also known as the Westside Infill Transit Oriented Development (WI-TOD), now commonly known as Paradise Creek Apartments (collectively "Project") is a 201-unit affordable housing development on the east side of Paradise Creek, and the expansion of Paradise Creek Educational Park on the west side of the creek. This Project, part of the adopted Redevelopment Plan proposed by the former Community Development Commission ("CDC"), was to redevelop approximately 12.75 acres in National City for affordable housing, public facilities, open s paces, and community services.

The Project concept was developed through a neighborhood and stakeholder design participation process and incorporated into the Westside Specific Plan, adopted in 2010. In March 2011, the CDC issued tax-exempt bonds, in part, to assist with the two-phase development. To assist with financing for the construction of the Project, the CDC in June 2011 provided a grant of $14,957,000 from the bond proceeds to CHW for Phase 1 of the project under the condition that CHW loan these funds to the Project. Later, in 2015, the Successor Agency provided a similarly structured grant of $14,909,000 to CHW for Phase 2 of the project from proceeds of the same 2011 Tax-Exempt Bonds.

This financing structure consisting of grants and subsequen t loans (“Promissory Notes”) was utilized because the developer for the Project, Paradise Creek I Housing Partners, LP, and Paradise Creek II Housing Partners, LP, for -profit entities, were not eligible to receive the tax - exempt bond funds directly without impacting the bonds' tax -exempt status. Community HousingWorks ("CHW"), a development partner in the project and a 501(c)3 non -profit, was eligible to receive the funds as grants and then execute the Promissory Notes. The term of each Promissory Note is 55 years.

The Grant Agreements impose restrictions on how CHW may utilize the proceeds from the Project’s repayment of the Promissory Notes. The repayment terms are structured as residual receipts, in which a portion of the Project’s residual cash flow (de fined as net operating income minus primary debt service payments) is paid each year and is held by CHW as “Program Income.” Program Income must be put towards projects and programs for the benefit of the surrounding community of the Project.

MULTI-YEAR PLAN DEVELOPMENT
Annually, the Paradise Creek Apartments Phases I and II undergo compliance monitoring by the National City Housing Authority ("NCHA") staff, including monitoring of the use of Program Income funds. NCHA Staff are Community Pla nning Development Grant Administrators specialized in providing technical assistance and managing complex planning processes. For the Multi -Year Plan development, CHW staff received technical assistance to structure the delivery of accumulated Program Inco me funds to the Community, including community engagement

strategies and a framework plan that outlines a process for activity implementation and performance reporting to ensure transparency.

CHW conducted a comprehensive community engagement (“Exhibit C ”) to identify priority needs and potential investments in the Community. Between February and June 2024, CHW partnered with SVPR, Inc. to conduct an extensive outreach campaign. The effort included participation in eight (8) community meetings, outreach at major community events, door-to-door engagement, and direct input sessions with Paradise Creek residents. In total, 263 community members participated in the survey process. Through the robust outreach process conducted over a five-month period, CHW engaged the community to identify key needs and priorities. The results of this engagement demonstrated a clear and consistent demand for increased access to social services; a recreational center open to all age groups; outdoor recreational equipment; workforce development opportunities; and indoor and outdoor meeting spaces for community gatherings.

Based on the community input, CHW developed a Multi-Year Plan that balances one-time capital investments with ongoing programmatic support. The Multi -Year Plan pro poses using accumulated available Program Income through FY 2026 ($1,570,000) to provide grants to the City for key capital improvement projects and programs, while allocating future annual Program Income toward sustained community programming through FY 2 029. Each year’s Program Income cannot be determined in advance, only estimated. Actual amounts of Program Income for FY 2027, 2028, and 2029 will be allocated through the Annual Plan process.

STAFF RECOMMENDATION
Staff recommends that the City Council:

1. City Council recommendation to authorize the City Manager or his designee to execute City Manager or designee to execute a Memorandum of Agreement (“MOA”) with Community HousingWorks to carry out activities in the CHW Paradise Creek Enhancement Project FY 2025-2029 Multi-Year Plan for Program Income.

2. City Council recommendation to authorize the acceptance of grant funds in the amount of $1,570,000 from CHW for capital improvement projects consistent with the Paradise Creek Enhancement Project FY 2025 -2029 Multi-Year Plan for Program Income for significant one-time investments in community infrastructure, including:
 Public Restroom Facilities at Paradise Creek Community Park;  Casa de Salud facility renovations and rehabilitation; and  Shade structure installation at the Paradise Creek Community Garden.

3. City Council recommendation to authorize the establishment of an appropriation of $1,570,000 and corresponding revenue budget for FY 2027. Future appropriations and budget adjustments will be brought to the City Council for approval.

The Paradise Creek E nhancement Project Multi -Year Plan represents a comprehensive and community-informed strategy for the use of Program Income funds over a five -year period. The Plan reflects a balanced approach that addresses both immediate capital infrastructure needs and long-term community programming priorities.

The priorities identified in the Plan, supported by the proposed grant funding to the City, directly advance the City Council’s Strategic Plan goals related to community engagement, public health, economic opportunity, and quality of life.

By leveraging existing City services, facilities, and parks, these grant funds will expand City programs, recreational opportunities, and capital improvements, and foster a healthy, connected, and age‑ friendly community.

This Space was intentionally left blank.

PARADISE CREEK ENHANCEMENT PROJECT FY 2025-2029 MULTI-YEAR PLAN FOR PROGRAM INCOME

CITY PROJECT AND PROGRAM-RELATED ACTIVITIES ONLY

PARADISE CREEK ENHANCEMENT PROJECT FY 2025-2029 MULTI-YEAR PLAN FOR PROGRAM INCOME # Department Project and Program-Related
Activities
CHW PI
FY 2025
CHW PI
FY 2026
CHW PI
FY 2027
CHW PI
FY 2028
CHW PI
FY 2029 Total
1 Engineering & Public
Works
Paradise Creek Community Park
Public Restrooms (CIP) $500,000 $ 500,000
2 Engineering & Public
Works Casa de Salud Renovations (CIP) $ 835,000 $135,000 $ 970,000 3 Engineering & Public
Works
Paradise Creek Community
Garden Shade Structure (CIP) $ 100,000 $ 100,000 4 Community Services Programs and Services $135,000 $135,000 $135,000 $ 405,000 Total Grant $1,435,000 $135,000 $135,000 $135,000 $135,000 $1,975,000

Multi-Year Plan Budget Revisions & Notes
1 FY 2025 and FY 2026 Community Service Programs and Services funding to be reallocated to Engineering & Public Works for Casa de Salud Renovations (CIP)
2 CHW has accounted for FY 2025 and FY 2026 Program Income through accumulated and will award the City grant funds upon execution of the agreement.
3 Program Income for FY 2027, FY 2028, and FY 2029 will be receipted and disbursed accordingly by CHW upon City approval of each Annual Plan.

FINANCIAL STATEMENT:

Under the proposed Memorandum of Agreement (“ Exhibit A”), Community HousingWorks will remit funds to the City of National City to implement the Paradise Creek Enhancement Project FY 2025-2029 Multi-Year Plan for Program Income (“Multi-Year Plan”).

1. No grant match is required.

2. The FY26 grant funding of $1,570,000 for one-time Capital Improvement Projects will be administered by the Engineering and Public Works Department . The associated budget adjustment would be entered as follows:

Revenue: $1,570,000 to 282-10-31-31100-3464- 1591282 Other Grants (Paradise Creek Enhancement Project)

Expense: $1,570,000 to 282-10-18-18500-7898-, with the following project accounts $ 500,000 to Project # 1592282 (Paradise Creek Public Restrooms) $ 970,000 to Project # 1593282 (Casa de Salud Renovations) $ 100,000 to Project # 1594282 (Paradise Creek Park Shade Structure)

3. An estimated $135,000 in annual funding will be granted for Project and Program-Related Activities to be administered by the Community Services Department in FY 2027, FY 2028, and FY 2029 during CHW’s Annual Plan Process. Appropriations will be established annually once actual grant funding amounts are known.

RELATED CITY COUNCIL 2020-2025 STRATEGIC PLAN GOAL:

Housing and Community Development

ENVIRONMENTAL REVIEW:

This is not a project under CEQA, and is therefore, not subject to environmental review.

CCR15378; PRC 21065. Environmental review of CIP pro jects will occur separately, as applicable, during design.

PUBLIC NOTIFICATION:

The Agenda Report was posted at least 72 hours before the Regular Meeting date and time, and 24 hours before a Special Meeting in accordance with the Ralph M. Brown Act.

ORDINANCE:

Not Applicable

EXHIBIT:

Exhibit A - Memorandum of Agreement
Exhibit B - Multi-Year Plan
Exhibit C - Community Engagement
Exhibit D - Resolution

Memorandum of Agreement City of National City and
Paradise Creek Multi-Year Grant Community HousingWorks
Exhibit A

Memorandum of Agreement City of National City and
Paradise Creek Multi-Year Grant Community HousingWorks

MEMORANDUM OF AGREEMENT

BETWEEN

COMMUNITY HOUSINGWORKS
AND

CITY OF NATIONAL CITY

This Memorandum of Agreement ("MOA" or "Agreement" ) is entered into by and between Community HousingWorks, a California nonprofit public benefit corporation ("CHW"), and the City of National City, a California municipal corporation ("City"). CHW and the City may be referred to individually as a "Party" and collectively as the "Parties."

RECITALS
WHEREAS, CHW receives and administers Program Income generated from the Paradise Creek Apartments, Phases I and II, pursuant to the Transit-Oriented Infill Affordable Housing and Paradise Creek Enhancement Project Grant Agreement s dated June 21, 2011 and August 18, 2015; and
WHEREAS, Program Income is intended to fund social, recreational, educational, and workforce development programs, in addition to community -serving activities and capital improvements, for the primary benefit of the Project, its residents and the residents of the community of which the Project is a part commonly known as Paradise Creek, Westside, and Old Town National City and will be collectively referred to as the “Community”; and WHEREAS, the Community HousingWorks Paradise Creek Enhancement Project FY 2025-2029 Multi-Year Plan for Program Income (“Multi-Year Plan”) establishes the intended use of accumulated Program Income and the anticipated ongoing Program Income by supporting specific capital improvements and community-serving programs (“Project and Program-Related Activities” or “Activities”); and
WHEREAS, in addition to the Multi-Year Plan, CHW will prepare and submit Annual Plans that include eligible Activities per the Multi-Year Plan and funding amounts corresponding to the actual receipt of Program Income for each prior year; and WHEREAS, CHW will allocate the remaining balance and newly generated Program Income funds to Activities identified in the Plan through Fiscal Year 2028-2029; and WHEREAS, to better coordinate and leverage funding and services, CHW seeks to grant the City funding to provide certain Project and Program-Related Activities identified in the Multi- Year Plan; and
WHEREAS, the Parties desire to enter into this MOA to establish the terms and conditions under which CHW shall grant funds to the City.

NOW, THEREFORE , in consideration of the mutual covenants contained herein, the Parties agree as follows:

Memorandum of Agreement City of National City and
Paradise Creek Multi-Year Grant Community HousingWorks

AGREEMENT

1. Full Agreement: This MOA represents the full and entire agreement between the Parties and supersedes any prior written or oral agreements that may have existed.

2. Performance Term:

2.1 Times of Performance. This MOA shall become effective upon execution by both Parties and shall remain in effect through June 30, 2029

2.2 Extension. This Agreement may also be extended in writing by the mutual agreement of the City and CHW.

3. AUTHORIZED REPRESENTATIVES:

3.1. Administration of MOA : Each Party identifies the following individual to serve as the authorized administrative representative for that Party. Any Party may change its administrative representative by notifying the other Party in writing of such change. Any such change shall become effective upon the receipt of such notice by the other P arty to this MOA. Notice of the authorized representative should be sent to each Party as follows:

Community HousingWorks
President and CEO
3111 Camino Del Rio N, Suite 800
San Diego, CA 92108
City of National City
City Manager
1243 National City Blvd
National City, CA 91950

3.2. Counterparts: This MOA may be executed in any number of separate counterparts, each of which shall be deemed an original but all of which when taken together shall constitute one and the same instrument.

4. Institution Rights and Responsibilities

4.1. City of National City (“City”):

4.1.1. Scope of Work. Defined in “Exhibit B” Multi-Year Plan and should be c onsistent with CHW’s community engagement titled survey results and priorities to the greatest extent possible to fund social, recreational, educational, and workforce development programs, in addition to community -serving activities and capital improvements.

4.1.2. Beneficiaries. Primarily benefit residents of the community of which the Paradise Creek Apartments Project is a Part (commonly known as Paradise Creek, Westside, and Old Town National City) and will be collectively referred to as the “Community.”

4.1.3. Performance Reporting. Reference “Exhibit B” for performance reporting requirements for the CIP and Community Service Programs.