Norco City Council
September 18, 2024

AGENDA
City Council
Wednesday, September 18, 2024
City Council Chamber – Norco City Hall
2820 Clark Avenue, Norco, CA 92860
CALL TO ORDER 5:30 PM
ROLL CALL Kevin Bash, Mayor
Greg Newton, Mayor Pro Tem
Katherine Aleman, Council Member
Robin Grundmeyer, Council Member
Berwin Hanna, Council Member

CLOSED SESSION

CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Property: Silverlakes Sports Park
Agency negotiator: Interim City Manager
Negotiating parties: City of Norco and Balboa Management Group LLC.

Under negotiation: Price and Terms

CONFERENCE WITH REAL PROPERTY NEGOTIATION
Property: APN 131-130-026
Agency negotiators: Interim City Manager
Under negotiation: Price and Terms

CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Property: APNs 126-050-002, 126-050-004, 129-380-010
Agency negotiator: City Manager, Director of Community Development, City Attorney, Special Counsel Vega
Negotiating parties: City of Norco and Jimmy Previti's Frontier Communities Under negotiation: Price and Terms of Payment
RECONVENE PUBLIC SESSION 7:30 PM

REPORT OF ACTION(S) TAKEN IN CLOSED SESSION
PLEDGE OF ALLEGIANCE Council Member Aleman
INVOCATION Pastor Jason Davitt
Calvary Chapel Norco
PRESENTATIONS Animal Rescue Recognition
National Preparedness Month
Proclamation

1. CITY COUNCIL REPORTS ON REGIONAL BOARDS
City Council Agenda - September 18, 2024

2. PUBLIC COMMENTS
This is the time when persons wishing to address the presiding governmental body regarding the Consent Calendar, Legislative Matters or items within the subject matter jurisdiction of the legislative body. Please submit a speaker card to the Meeting Clerk. Please limit comments to three minutes or less. The Ralph M. Brown Act limits the governmental body’s ability to respond to comments on non-agendized matters at the time such comments are made. The governmental body shall not discuss or act relative to any general public comment.

3. CONSENT CALENDAR
All items listed under the Consent Calendar are considered to be routine and may be enacted by one motion. Prior to the motion to consider any action by the presiding governmental body, any public comments on any of the Consent Items will be heard. There will be no separate action unless members of the governmental body request specific items be removed from the Consent Calendar. Items removed from the Consent Calendar will be separately considered under Item 4 of the Agenda.

3.A. Waive Reading of all Ordinance Adoptions on this Agenda and Read by Title Only
RECOMMENDATION:

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

Staff Report - Pdf

3.B. Approval of City Council Regular Meeting Minutes
RECOMMENDATION:

Approve the City Council Regular Meeting Minutes of September 04, 2024.

Staff Report - Pdf

3.C. Consideration of a letter requesting for Veto of Assembly Bill 98 - AB 98 (Carillo J., Reyes): Planning and Zoning: Logistic Use: Truck Routes RECOMMENDATION:

Approve a letter to the Governor's Office requesting for veto of AB 98 (Carillo J., Reyes).

Staff Report - Pdf

City Council Agenda - September 18, 2024

3.D. Approval Request for Supplemental Agreement Extension for CDBG Funding
RECOMMENDATION:

Approve the attached Community Development Block Grant (CDBG) supplemental agreement extension request for the Community Center Park ADA Synthetic Poured-in-Place Surface Project. The Mayor will sign the extension letter upon the Council’s approval.

Staff Report - Pdf

3.E. Acceptance of Bids and Award of Contract for the Pikes Peak Park ADA Synthetic Poured-In-Place Surfacing Project
RECOMMENDATION:

Accept bids and award contract to Pacific Tide Construction in the amount of $447,904; and authorize the Interim City Manager to approve contract change orders up to 10% of the original contract.

Staff Report - Pdf

3.F. Accept Bids, Reject Bid Protest, Approve Project Plans, and Award of Contract for the Moreno Arena Bleacher Support Pad Replacement Project RECOMMENDATION:

Accept bids, reject bid protest, approve project plans, and award the contract to Metrocell Construction, Inc. for the Moreno Arena Bleacher Support Pad Replacement Project in the amount of $265,900; authorize the Interim City Manager to approve contract change orders up to 10% of the original contract.

Staff Report - Pdf

3.G. A proposal to amend Chapter 5 (Architectural Style Standards) of the previously adopted Objective Development Standards to require the incorporation of architectural corrugated metal siding for all developments with 100 or more residential units.

RECOMMENDATION:

Adopt Resolution 2024-53, approving an amendment to the Objective Development Standards.

Staff Report - Pdf

City Council Agenda - September 18, 2024

3.H. Recap of Actions Taken by the Planning Commission at its Meeting Held on September 11, 2024
RECOMMENDATION:

Receive and file the recap of actions taken by the Planning Commission at its meeting held on September 11, 2024.

Staff Report - Pdf

4. ITEM(S) PULLED FROM CONSENT CALENDAR

5. DISCUSSION / ACTION ITEM(S)
Order of Presentation for Discussion Items:

1. Staff Report Presentation

2. Council Questions of Staff

3. Public Comment

4. Council Discussion and Action

5.A. Consideration of a Resolution to Adopt a Salary Adjustment for the City Manager position
RECOMMENDATION:

Adopt Resolution No. 2024-54 adjusting the Salary of the City Manager retroactive to August 15, 2024.

Staff Report - Pdf

6. PUBLIC HEARING(S)
Order of Presentation for Public Hearing Items:

1. Staff Report Presentation

2. Council Questions of Staff

3. Open Public Hearing
a. Public Comment

4. Close Public Hearing

5. Council Discussion and Action

6.A. Tentative Parcel Map 38849 (Calland Engineering, Inc.): A request to subdivide an existing 1.72-acre lot into 3 lots located at the northeast corner of Mountain Avenue and Paddock Lane, within the A-1-20 Zone (APN: 126-060-001).

RECOMMENDATION:

Adopt Resolution 2024-52, approving Tentative Map 38849.

Staff Report - Pdf

City Council Agenda - September 18, 2024

7. CITY COUNCIL / STAFF COMMUNICATIONS

8. ADJOURNMENT
In compliance with the Americans with Disabilities Act, any person who requires a modification or accommodation in order to participate in this meeting is encouraged to contact the City Clerk’s Office at (951) 270-5623 or [email protected] at least 48 hours prior to the meeting so that reasonable arrangements can be made to ensure accessibility. Staff reports are on file in the City Clerk’s Office.

Any writings or documents provided to a majority of the presiding governmental body regarding any item on this agenda will be available for public inspection at the City Clerk’s Office during normal business hours at Norco City Hall, located at 2870 Clark Avenue in Norco. The meeting is recorded.

City Council

STAFF REPORT
Date: September 18, 2024 Agenda Item:

3.A.

To: Honorable Mayor and City Council Members
From: Dana Roa, City Clerk
Prepared By: Sophia Thompson, Deputy City Clerk
Department: City Clerk
SUBJECT:

Waive Reading of all Ordinance Adoptions on this Agenda and Read by Title Only RECOMMENDATION:

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

REVIEWED AND APPROVED BY:

City Council

STAFF REPORT
Date: September 18, 2024 Agenda Item:

3.B.

To: Honorable Mayor and City Council Members
From: Dana Roa, City Clerk
Prepared By: Sophia Thompson, Deputy City Clerk
Department: City Clerk
SUBJECT:

Approval of City Council Regular Meeting Minutes
RECOMMENDATION:

Approve the City Council Regular Meeting Minutes of September 04, 2024.

REVIEWED AND APPROVED BY:

Approved by: Lisette Free, Interim City Manager
ATTACHMENT(S):

City Council - Sep 04 2024 - DRAFT Minutes

DRAFT - MINUTES
City Council
Wednesday, September 4, 2024
City Council Chamber – Norco City Hall
2820 Clark Avenue, Norco, CA 92860
CALL TO ORDER 5:32 PM
ROLL CALL Kevin Bash, Mayor
Greg Newton, Mayor Pro Tem
Katherine Aleman, Council Member
Robin Grundmeyer, Council Member
Berwin Hanna, Council Member

CLOSED SESSION
City Attorney Burns read the Closed Session items into the record.

CONFERENCE WITH LABOR NEGOTIATORS
Agency designated representatives: Mayor and Mayor Pro Tempore Unrepresented employee: Interim City Manager

CONFERENCE WITH LABOR NEGOTIATOR
Agency designated representative: Interim City Manager Lisette Free Employee organization: Utility Workers Union of America, AFL-CIO Local 606

CONFERENCE WITH LEGAL COUNSEL--ANTICIPATED LITIGATION
Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Section 54956.9: (2 potential cases)

CONFERENCE WITH LEGAL COUNSEL--EXISTING LITIGATION
(Paragraph (1) of subdivision (d) of Section 54956.9)
Name of case: People v. JOHN OPITZ, RIC1905434
RECONVENE PUBLIC SESSION 7:00 PM

REPORT OF ACTION(S) TAKEN IN CLOSED SESSION
City Attorney Burns stated that there were no reportable actions taken on items one, two and four. Item three, Conference with Legal Counsel - Anticipated Litigation, one potential case received contingent approval to initiate litigation.

PLEDGE OF ALLEGIANCE Mayor Pro Tem Newton
INVOCATION Pastor Rene Parish

City Council Minutes - September 4, 2024
Beacon Hill Assembly of God

1. CITY COUNCIL REPORTS ON REGIONAL BOARDS
The Mayor, Mayor Pro Tem and Council Members provided reports on their recent individual participation in committees, commissions, regional boards, and community organizations.

2. PUBLIC COMMENTS
Lamondo Greer provided an update on the Corona Norco YMCA swim programs and announced they partnered with Corona High School to expand their swim and water safety programs.

Geoff Kahan spoke regarding complaints he has received regarding music that was played during the Labor Day Parade and takes sole responsibility for the music selection. He announced his resignation from his position as the announcer for the parade and apologized to the Norco Fair Committee.

Greg Bowen thanked everyone for coming to the Norco Fair and thanked City Staff for their hard work and dedication.

Bonnie Slager thanked City Staff for all the hard work and support for the Norco Fair. She reminded everyone of the Candidate Night on September 19, 2024 at Nellie Weaver Hall at 6:30 PM.

Carol Hubl spoke regarding her concern for the safety of pedestrians and equestrians traveling the new Hamner Bridge as the space provided is not adequate.

3. CONSENT CALENDAR
a) Approval of Consent Calendar as Presented.

M/S ALEMAN/GRUNDMEYER Approve of Consent Calendar as Presented. The Motion was carried by the following roll call vote:

AYES: BASH, NEWTON, ALEMAN, GRUNDMEYER, AND HANNA
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE

City Council Minutes - September 4, 2024

3.A. Waive Reading of all Ordinance Adoptions on this Agenda and Read by Title Only
Action: Waived reading, by title only, of all Ordinances and Resolutions. Said Ordinances and Resolutions which appear on the agenda shall be determined to have been read by title and further reading waived.

3.B. Approval of City Council Regular Meeting Minutes and Special Meeting Minutes Action: Approved the City Council Regular Meeting Minutes of August 21, 2024 and Special Meeting Minutes of August 14, 2024.

3.C. Amendment to Increase Contract amount for NCS Engineers for Additional Environmental Work Related to Design Services for Per-and polyfluoroalkyl substances (PFAS) Treatment System for Groundwater Wells Action: Approved an amendment to the contract for NCS Engineers for additional NEPA environmental work related to design services for per-and polyfluoroalkyl substances (PFAS) Treatment System for groundwater wells for an additional $57,578.

3.D. Acceptance of Storm Drain Easement Dedication for the Norco MDP Line S-5E Storm Drain Project (APN 123-130-009)
Action: Accepted the offer of dedication of the public storm drain easement on 2520 Hillside Avenue (APN 123-130-009), authorized the Mayor to sign the Certificate of Acceptance and directed the City Clerk to file the Certificate of Acceptance with the County of Riverside Recorder’s Office.

3.E. Acceptance of Proposals and Award of Contract for the Professional Architectural/Engineering Design Services for The Hall Roof Replacement Project; and Approve Appropriation of Funds
Action: Accepted the proposals and awarded the contract to Beam Professionals for the Professional Architectural and Engineering Design Services for The Hall Roof Replacement Project, with a not-to-exceed contract amount of $36,817. Additionally, allocated a budget appropriation of $36,817 from the General Fund to cover the cost of the professional services contract.

3.F. Approval of New Joint Use Agreement and Joint Occupancy Agreement between Corona-Norco Unified School District and the City of Norco

City Council Minutes - September 4, 2024
Action: Approved the new Joint Use Agreement and Joint Occupancy Agreement between the Corona-Norco Unified School District (CNUSD) and the City of Norco for the shared use and management of the City Council/School Board Chambers and associated facilities.

4. ITEM(S) PULLED FROM CONSENT CALENDAR
There were no items pulled from the Consent Calendar.

5. LEGISLATIVE MATTERS

5.A. Second reading of Ordinance No. 1124: An Ordinance of the City Council of the City of Norco, California, Amending Title 9 of the Norco Municipal Code (NMC), Chapter 9.20 “Fireworks”, Section 9.20.040 “Administrative citation – Issuance” to increase the fine amounts for illegal use of fireworks. Code Amendment 2024- 10 City Attorney Burns introduced the second reading of Ordinance No. 1124.

Council Members had no questions or concerns.

Mayor Bash opened Public Comment.

There were no Public Comments at this time.

Mayor Bash closed Public Comment.

Motion was made.

M/S NEWTON/HANNA Ordinance No. 1124: Second Reading, Approval of Amendment of Title 9 of the Norco Municipal Code (NMC), Chapter 9.20 "Fireworks", Section 9.20.040 "Administrative citation - Issuance" to increase the fine amounts for illegal use of fireworks. The Motion was carried by the following roll call vote:

AYES: BASH, NEWTON, ALEMAN, GRUNDMEYER, AND HANNA
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE

6. DISCUSSION / ACTION ITEM(S)

City Council Minutes - September 4, 2024

6.A. Approval of a 3-year contract for professional public works inspection services Public Works Director Blais presented the report.

Council Members had no questions or concerns.

Mayor Bash opened Public Comment.

Lacey Matson spoke regarding her concern for the Union rules when an employer hires a contracted worker. She spoke in favor of opening the position up for internal hire and stated the Local Union would like to meet with Council Members to discuss the item further if needed.

Greg Bowen thanked the City Staff for their hard work and spoke in favor of opening the position up for internal hire rather than continuing with a contracted position.

Mayor Bash closed Public Comment.

Council Members discussed the position and the option to move forward with the contract but to open a recruitment to hire a full time City Employee for the inspector position and adjust the contract if the position is filled.

Following discussion, motion was made.

M/S ALEMAN/GRUNDMEYER Approve and award a 3-year contract to Z&K Consultants, Inc. to provide professional inspection services for the Public Works Department for fiscal year 2024-25 through 2026-27 in an amount not to exceed $550,000 annually; and to open a position for a full-time internal employee and adjust the contract as needed if the position is filled. The Motion was carried by the following roll call vote:

AYES: BASH, NEWTON, ALEMAN, GRUNDMEYER, AND HANNA
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE

6.B. Discuss Norco Municipal Code Chapter 18.37 "Signs" Section 18.37.08 regarding Political Signs
City Clerk Roa presented the report.

City Council Minutes - September 4, 2024
Council Member Hanna clarified his reasoning for asking this item to be agendized.

Mayor Pro Tem Newton and Council Member Hanna spoke regarding best practice to have signs put up after September First.

Council Member Aleman spoke regarding the First Amendment and that all signs must be enforced equally.

Council Member Grundmeyer spoke regarding neighboring Cities enforcement of signs and is not opposed to no signs in public spaces.

Mayor Bash opened Public Comment.

Bonnie Slager spoke regarding her experience with owners of commercial businesses who are unhappy with signs that were put up on their properties without permission.

Mayor Bash closed Public Comment.

City Attorney Burns addressed concerns and Council Members discussed the Ordinance.

Council Member Aleman recommended that the Ordinance be reviewed and clarified if needed.

Council Member Hanna made a motion to have a good neighbor policy that requires signature when candidates pull papers to not put signs up until after September First.

City Attorney Burns addressed questions regarding the enforcement of election signs.

No Second was made.

Council Members did not have a consensus and there was no further discussion, no formal motion was made to make any changes.

7. CITY COUNCIL / STAFF COMMUNICATIONS
Council Member Aleman thanked Volunteers and Staff for their hard work at the Norco Fair and rodeo and enjoyed participating in the parade.

City Council Minutes - September 4, 2024
Council Member Grundmeyer thanked Volunteers and Staff for their hard work at the Norco Fair and thanked the community for their support of agriculture and livestock.

8. ADJOURNMENT
Mayor Bash adjourned the meeting at 8:04 PM with a moment of silence for fallen Dallas Police Officer, Daron Burks, and the teachers and students who lost their lives at the Apalachee High School Shooting in Georgia. _________________________________
Dana Roa, CMC
City Clerk

City Council

STAFF REPORT
Date: September 18, 2024 Agenda Item:

3.C.

To: Honorable Mayor and City Council Members
From: Lisette Free, Finance Director
Prepared By: Sophia Thompson, Deputy City Clerk
Department: Administration
SUBJECT:

Consideration of a letter requesting for Veto of Assembly Bill 98 - AB 98 (Carillo J., Reyes): Planning and Zoning: Logistic Use: Truck Routes RECOMMENDATION:

Approve a letter to the Governor's Office requesting for veto of AB 98 (Carillo J., Reyes).

SUMMARY:

AB 98 (Carillo J., Reyes), Planning and Zoning: Logistics Use: Truck Routes would mandate statewide standards for the design and build of a new or expanded warehouse or logistic use, including 300-to-500-foot setback for either existing or rezoned sites, 50- to-100-foot wall/landscape buffer, building design, including solar systems, zero emission onsite equipment, electric charging parking stations, loading bays, and truck route location on site, and signage. All cities and counties would be required to update their circulation element by 2026 or 2028, depending on region to address mandated truck routes, if not completed the Attorney General may fine $50,000 per six months. It is recommended that the City Council approve a letter requesting for veto on AB 98 to the Governor's Office.

BACKGROUND:

Passed in Senate on August 31, 2024, AB 98 is currently in the Governor's Office for review and is required to be signed or vetoed by September 30, 2024. The bill aims to address air quality related concerns adjacent to warehouse operations, however, the bill includes stringent requirements that will severely impact the ability for local jurisdictions to site based on unique geographic and community characteristics, and stifles economic and workforce development within the community.

AB 98 would do the following:

- Prohibit the City from approving development of a logistics use that does not meet or exceed the standards outlined in the bill (See Attached). - Require the City, by January 1, 2028, to update its circulation element, including identifying and establishing specific travel routes to safely accommodate additional truck traffic while avoiding residential areas and sensitive receptors. - Require the City to provide for posting of conspicuous signage to identify truck routes and additional signage for truck parking and appropriate idling facility locations. - Require the City to make truck routes publicly available and share maps with warehouse operators, fleet operators, and truck drivers.

AB 98 would modify the duties of local agencies with regard to the approval of logistics use development and require the revision of the circulation element of a general plan.

The bill would impose a state-mandated local program and would be addressed as a matter of statewide concern and would apply to all cities, including charter cities.

It is recommended that the City Council approve a letter from the City of Norco requesting the Governor's Office to veto AB 98 (Carillo J., Reyes).

FISCAL IMPACT:

Not applicable for this item.

RELATIONSHIP TO STRATEGIC PLAN:

Strategic Plan #1: Public Health, Safety and Wellness; Enhance quality of life by promoting public health, safety and wellness initiatives for all community members.

REVIEWED AND APPROVED BY:

Approved by: Lisette Free, Interim City Manager
Approved as to Form: Harper and Burns, LLP, City Attorney ATTACHMENT(S):

California-2023-AB98-Enrolled
AB 98 Letter Requesting Veto

ASSEMBLY BILL NO. 98
ENROLLED SEPTEMBER 05, 2024
PASSED IN SENATE AUGUST 31, 2024
PASSED IN ASSEMBLY AUGUST 31, 2024
AMENDED IN SENATE AUGUST 28, 2024
CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION
Introduced by Assembly Members Juan Carrillo and Reyes
January 09, 2023
An act to add Section 65302.02 to, and to add Chapter 2.8 (commencing with Section 65098) to Division 1 of Title 7 of, the Government Code, and to add Sections 40458.5 and 40522.7 to the Health and Safety Code, relating to land use.

LEGISLATIVE COUNSEL'S DIGEST
AB 98, Juan Carrillo. Planning and zoning: logistics use: truck routes. (1) Existing law, the Planning and Zoning Law, sets forth various requirements relating to the review of development project permit applications and the issuance of development permits for specified classes of development projects.

This bill, beginning January 1, 2026, would prescribe various statewide warehouse design and build standards for any proposed new or expanded logistics use developments, as specified, including, among other things, standards for building design and location, parking, truck loading bays, landscaping buffers, entry gates, and signage. The bill would except from those design and build standards certain existing logistics use developments, proposed expansions of a logistics use development, and property currently in a local entitlement process to become a logistics use, under prescribed conditions. The bill would require a facility operator, prior to the issuance of a certificate of occupancy, to establish and submit for approval by a city, county, or city and county a truck routing plan to and from the state highway system based on the latest truck route map of the city, county, or city and county, as prescribed. The bill would require a facility operator to enforce the plan. The bill would provide for the revision of the plan in specified circumstances.

The bill would prohibit a city, county, or city and county from approving development of a logistics use that does not meet or exceed the standards outlined in the bill. The bill would require a city, county, or city and county to condition approval of a logistics use on 2-to-1 replacement of any demolished housing unit that was occupied within the last 10 years unless the housing unit was declared substandard by a building official, as specified, and payments to displaced tenants if residential dwellings are affected through purchase, as prescribed. The bill would define terms for these purposes.
(2) The Planning and Zoning Law requires the legislative body of each county and city to adopt a comprehensive, long-term general plan for the physical development of the county or city and specified land outside its boundaries that includes, among other specified mandatory elements, a circulation element consisting of the general location and extent of existing and proposed major thoroughfares, transportation routes, terminals, any military airports and ports, and other local public utilities and facilities, all correlated with the land use

element of the plan. Existing law requires, upon any substantive revision of the circulation element, that the legislative body modify the element to address specified additional issues.

This bill would require a county or city, by January 1, 2028, except as provided, to update its circulation element, as prescribed, including identifying and establishing specific travel routes for the transport of goods, materials, or freight for storage, transfer, or redistribution to safely accommodate additional truck traffic and avoid residential areas and concentrations of sensitive receptors, as defined. The bill would establish specific standards for truck routes. The bill would require a county or city to provide for posting of conspicuous signage to identify truck routes and additional signage for truck parking and appropriate idling facility locations. The bill would require a county or city to make truck routes publicly available and share maps of the truck routes with warehouse operators, fleet operators, and truck drivers. The bill would authorize the Attorney General to enforce these provisions, as provided, including by imposition of a fine of up to $50,000 every 6 months if the required updates have not been made.
(3) Existing law provides for the creation of the South Coast Air Quality Management District in those portions of the Counties of Los Angeles, Orange, Riverside, and San Bernardino included within the area of the South Coast Air Basin, as specified. Existing law provides that the south coast district is governed by a board consisting of 13 members and requires the district to adopt rules and regulations to carry out the south coast district air quality management plan that are not in conflict with state and federal laws and rules and regulations.

This bill would require the south coast district to establish a process for receiving community input on how any penalties assessed and collected for violation of the Warehouse Indirect Source Rule are spent, as specified. The bill would require the south coast district, subject to an appropriation for this express purpose, to, beginning on January 1, 2026, and until January 1, 2032, deploy mobile air monitoring systems within the Counties of Riverside and San Bernardino to collect air pollution measurements in communities that are near operational logistics use developments. The bill would require the south coast district to use the data collected to conduct an air modeling analysis to evaluate the impact of air pollution on sensitive receptors from logistics use development operations and to submit its findings to the Legislature on or before January 1, 2033. The bill would also require the district to submit an interim report to the Legislature on or before January 1, 2028, to evaluate the impact of air pollution on sensitive receptors, as defined, from logistics use development operations in the Counties of Riverside and San Bernardino, as provided. (4) By modifying the duties of local agencies with regard to the approval of logistics use development and requiring the revision of the circulation element of a general plan, the bill would impose a state-mandated local program.
(5) The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities. (6) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Digest Key
Vote: majority Appropriation: no Fiscal Committee: yes Local Program: yes Bill Text

THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS
FOLLOWS:

SECTION 1. Chapter 2.8 (commencing with Section 65098) is added to Division 1 of Title 7 of the Government Code, to read:

CHAPTER 2.8. Warehouse Design and Build Standards
65098. As used in this chapter:
(a) “21st century warehouse” means a logistics use that meets all of the following:
(1) Complies with or exceeds all requirements of the most current building energy efficiency standards specified in Part 6 (commencing with Section 100) of Title 24 of the California Code of Regulations and the California Green Building Standards Code (Part 11 of Title 24 of the California Code of Regulations), including, but not limited to, the following requirements related to:
(A) Photovoltaic system installation and associated battery storage. (B) Cool roofing.
(C) Medium- and heavy-duty vehicle charging readiness.
(D) Light-duty electric vehicle charging readiness and installed charging stations. (2) Has skylights in at least 1 percent of the roof area, or equivalent LED efficient lighting. (3) Provides conduits and electrical hookups at all loading bays serving cold storage. Idling or use of auxiliary truck engine power to power climate control equipment shall be prohibited if the truck is capable of plugging in at the loading bay.
(4) Ensures that any heating, ventilation, and air-conditioning is high-efficiency. (5) (A) Ensures that all classes of forklifts used on site, pursuant to State Air Resources Board’s ZeroEmission Forklifts regulation, as drafted, shall be zero-emission by January 1, 2030, to the extent operationally feasible, commercially off-the shelf available, and adequate power available on site. (B) (i) If not operationally feasible, commercially off-the shelf available, or if there is inadequate power available on site, the cleanest technology commercially available shall be used. (ii) Cost shall not be a factor in determining operational feasibility pursuant to this subparagraph. (6) (A) Ensures that equipment used on site utilizing small off-road engines shall be zero-emission, to the extent operationally feasible, commercially off-the shelf available, and adequate power available on site. (B) (i) If not operationally feasible, commercially off-the shelf available, or if there is inadequate power available on site, the cleanest technology commercially available shall be used. (ii) Cost shall not be a factor in determining operational feasibility pursuant to this subparagraph. (C) Should any equipment used on site utilizing small off-road engines be contracted out, the logistics use facility shall preferentially contract for services utilizing zero-emission small off-road engines. (b) “Expansion of an existing logistics use” means the expansion of an existing logistics use by 20 percent or more of the existing square footage. Office space shall not be included as part of the existing square footage or in the square footage for the 20-percent expansion threshold.

(c) “Heavy-duty truck” means a class 7 or class 8 truck. As used in this subdivision:
(1) “Class 7 truck” means a truck with a gross vehicle weight rating of 26,001 to 33,000 pounds. (2) “Class 8 truck” means a truck with a gross vehicle weight rating of greater than 33,000 pounds. (d) “Logistics use” means a building in which cargo, goods, or products are moved or stored for later distribution to business or retail customers, or both, that does not predominantly serve retail customers for onsite purchases, and heavy-duty trucks are primarily involved in the movement of the cargo, goods, or products. “Logistics use” does not include any of the following:
(1) Facilities where food or household goods are sold directly to consumers and are accessible to the public. (2) A building primarily served by rail to move cargo goods or product. (3) (A) A Strategic Intermodal Facility.
(B) For purposes of this subdivision, “Strategic Intermodal Facility” means a project that satisfies all of the following requirements:
(i) Logistics facilities, including warehousing and transloading facilities, served by rail. (ii) Intermodal freight transport services.
(iii) All facility structures and related rail operations are located within a single site footprint. (e) “Sensitive receptor” means one or more of the following:
(1) A residence, including, but not limited to, a private home, apartment, condominium unit, group home, dormitory unit, or retirement home.
(2) A school, including, but not limited to, a preschool, prekindergarten, or school maintaining kindergarten or any of grades 1 to 12, inclusive.
(3) A daycare facility, including, but not limited to, in-home daycare. (4) Publicly owned parks, playgrounds, and recreational areas or facilities primarily used by children, unless the development of the park and recreation areas are included as a condition of approval for the development of a logistics use.
(5) Nursing homes, long-term care facilities, hospices, convalescent facilities, or similar live-in housing. (6) Hospitals, as defined in Section 128700 of the Health and Safety Code. (f) “Small off-road engines” means spark-ignition engines rated at or below 19 kilowatts. (g) “Tier 1 21st century warehouse” means a logistics use that meets all of the following:
(1) Complies with or exceeds all requirements of the most current building energy efficiency standards specified in Part 6 (commencing with Section 100) of Title 24 of the California Code of Regulations and the California Green Building Standards Code (Part 11 of Title 24 of the California Code of Regulations), including, but not limited to, the following requirements related to:
(A) (i) Photovoltaic system installation and associated battery storage.

(ii) For purposes of the photovoltaic system installation requirement in clause (i), all warehouse square footage should be considered conditioned space.
(B) Cool roofing.
(C) Medium- and heavy-duty vehicle charging readiness.
(D) Light-duty electric vehicle charging readiness and installed charging stations. (2) Has skylights in at least one percent of the roof area, or equivalent LED efficient lighting. (3) Has a microgrid-ready switchgear system capable of supporting distributed energy resources. (4) Is advanced smart metering ready.
(5) Has a minimum of 50 percent of all passenger vehicle parking spaces preinstalled with conduit and all necessary physical infrastructure to support future charging of electric vehicles. (6) Has a minimum of 10 percent of all passenger vehicle parking spaces installed with electric vehicle charging stations.
(7) Provides conduits and electrical hookups at all loading bays serving cold storage. Idling or use of auxiliary truck engine power to power climate control equipment shall be prohibited if the truck is capable of plugging in at the loading bay.
(8) Ensures that any heating, ventilation, and air-conditioning is high-efficiency. (9) (A) Ensures that all classes of forklifts used on site, pursuant to State Air Resources Board’s ZeroEmission Forklifts regulation, as drafted, shall be zero-emission by January 1, 2028, to the extent operationally feasible, commercially off-the shelf available, and adequate power available on site. (B) (i) If not operationally feasible, commercially off-the shelf available, or if there is inadequate power available on site, the cleanest technology commercially available shall be used. (ii) Cost shall not be a factor in determining operational feasibility pursuant to this subparagraph. (10) (A) Ensures that equipment used on site utilizing small off-road engines shall be zero-emission, to the extent operationally feasible, commercially off-the shelf available, and adequate power available on site. (B) (i) If not operationally feasible, commercially off-the shelf available, or if there is inadequate power available on site, the cleanest technology commercially available shall be used. (ii) Cost shall not be a factor in determining operational feasibility pursuant to this subparagraph. (C) Should any equipment used on site utilizing small off-road engines be contracted out, the logistics use facility shall preferentially contract for services utilizing zero-emission small off-road engines. (h) “Warehouse concentration region” includes the Counties of Riverside and San Bernardino and the Cities of Chino, Colton, Fontana, Jurupa Valley, Moreno Valley, Ontario, Perris, Rancho Cucamonga, Redlands, Rialto, Riverside, and San Bernardino.
65098.1. (a) Commencing January 1, 2026, any proposed new or expanded logistics use development 250,000 square feet or more where the loading bay is within 900 feet of a sensitive receptor that is utilizing a site zoned for industrial use or any site where an application was submitted to the jurisdiction by September 30, 2024, to rezone as industrial and the rezone to industrial was ultimately approved shall comply with all of the following:

(1) Include all Tier 1 21st century warehouse design elements described in subdivision (g) of Section 65098. (2) Orient truck loading bays on the opposite side of the logistics use development away from sensitive receptors, to the extent feasible.
(3) Locate truck loading bays a minimum of 300 feet from the property line of the nearest sensitive receptor to the nearest truck loading bay opening using a direct straight-line method. (4) Have a separate entrance for heavy-duty trucks accessible via a truck route, arterial road, major thoroughfare, or a local road that predominantly serves commercial oriented uses. (5) Locate truck entry, exit, and internal circulation away from sensitive receptors. Heavy-duty diesel truck drive aisles shall be prohibited from being used on sides of the building that are directly adjacent to a sensitive receptor property line.
(6) Include buffering and screening to mitigate for light and noise, as described in Section 65098.2. (b) Commencing January 1, 2026, except as provided for in subdivision (c), any proposed new or expanded logistics use development that is on land that is not zoned industrial, whether developed or undeveloped, or land that needs to be rezoned, where the loading bay is within 900 feet of a sensitive receptor, shall comply with all of the following:
(1) If the logistics use development is 250,000 square feet or more it shall include all Tier 1 21st century warehouse design elements described in subdivision (g) of Section 65098. If the logistics use development is less than 250,000 square feet it shall include all 21st century warehouse design elements described in subdivision (a) of Section 65098.
(2) Orient truck loading bays on the opposite side of the logistics use development away from sensitive receptors, to the extent feasible.
(3) Locate truck loading bays a minimum of 500 feet from the property line of the nearest sensitive receptor to the nearest truck loading bay opening using a direct straight-line method. (4) Have a separate entrance for heavy-duty trucks accessible via a truck route, arterial road, major thoroughfare, or a local road that predominantly serves commercial oriented uses. (5) Locate truck entry, exit, and internal circulation away from sensitive receptors. Heavy-duty diesel truck drive aisles shall be prohibited from being used on sides of the building that are directly adjacent to a sensitive receptor property line.
(6) Include buffering and screening to mitigate for light and noise, as described in Section 65098.2. (c) Commencing January 1, 2026, any proposed new or expanded logistics use development that is on land that is not zoned industrial, whether developed or undeveloped, or land that needs to be rezoned, and is located in the warehouse concentration region, shall comply with all of the following:
(1) If the logistics use development is 250,000 square feet or more it shall include all Tier 1 21st century warehouse design elements described in subdivision (g) of Section 65098. If the logistics use development is less than 250,000 square feet it shall include all 21st century warehouse design elements described in subdivision (a) of Section 65098.
(2) Orient truck loading bays on the opposite side of the logistics use development away from sensitive receptors, to the extent feasible.
(3) Locate truck loading bays a minimum of 500 feet from the property line of the nearest sensitive receptor to the nearest truck loading bay opening using a direct straight-line method.

(4) Have a separate entrance for heavy-duty trucks accessible via a truck route, arterial road, major thoroughfare, or a local road that predominantly serves commercial oriented uses. (5) Locate truck entry, exit, and internal circulation away from sensitive receptors. Heavy-duty diesel truck drive aisles shall be prohibited from being used on sides of the building that are directly adjacent to a sensitive receptor property line.
(6) Include buffering and screening to mitigate for light and noise, as described in Section 65098.2. (d) Commencing January 1, 2026, any proposed new or expanded logistics use development less than 250,000 square feet where the loading bay is within 900 feet of a sensitive receptor that is utilizing a site zoned for industrial use or any site where an application was submitted to the jurisdiction by September 30, 2024, to rezone as industrial and the rezone to industrial was ultimately approved shall comply with all of the following:
(1) Orient truck loading bays on the opposite side of the logistics use development away from sensitive receptors, to the extent feasible.
(2) Locate truck entry, exit, and internal circulation away from sensitive receptors. Heavy-duty diesel truck drive aisles shall be prohibited from being used on sides of the building that are directly adjacent to a sensitive receptor property line.
(3) Include buffering and screening to mitigate for light and noise, as described in Section 65098.2. (4) Complies with or exceeds all requirements of the most current building energy efficiency standards specified in Part 6 (commencing with Section 100) of Title 24 of the California Code of Regulations and the California Green Building Standards Code (Part 11 of Title 24 of the California Code of Regulations), including, but not limited to, the following requirements related to:
(A) Photovoltaic system installation and associated battery storage. (B) Cool roofing.
(C) Medium- and heavy-duty vehicle charging readiness.
(D) Light-duty electric vehicle charging readiness and installed charging stations. (5) Provides conduits at loading bays equal to one truck per every loading bay serving cold storage. Idling or use of auxiliary truck engine power to power climate control equipment shall be prohibited if the truck is capable of plugging in at the loading bay.
(6) Ensures that any heating, ventilation, and air-conditioning is high-efficiency. (7) Have a separate entrance for heavy-duty trucks accessible via a truck route, arterial road, major thoroughfare, or a local road that predominantly serves commercial oriented uses. (e) (1) Except as provided in paragraph (2), on or before January 1, 2028, a city, county, or city and county shall update its circulation element to include truck routes, as specified in Section 65302.02. (2) On or before January 1, 2026, all cities and counties in the warehouse concentration region shall update its circulation element to include truck routes, as specified in Section 65302.02. 65098.1.5. (a) (1) Notwithstanding any other provision of law, any existing logistics use development in existence as of September 30, 2024, shall not be subject to the requirements described in paragraph (3) of subdivision (a) of, paragraph (3) of subdivision (b) of, or paragraph (3) of subdivision (c) of Section 65098.1, as applicable, if a new sensitive receptor is constructed, established, or permitted after the effective date of this chapter.

(2) Notwithstanding any other provision of law, if, by September 30, 2024, a proposed expansion of a logistics use development is in a local entitlement process, then the proposed expansion shall not be subject to the requirements described in paragraph (3) of subdivision (a) of, paragraph (3) of subdivision (b) of, or paragraph (3) of subdivision (c) of Section 65098.1, as applicable, if a sensitive receptor is constructed, established, or permitted after the effective date of this chapter. (3) Notwithstanding any other provision of law, if, by September 30, 2024, a property is currently in a local entitlement process to become a logistics use, then the proposed logistics use development shall not be subject to the requirements described in paragraph (3) of subdivision (a) of, paragraph (3) of subdivision (b) of, or paragraph (3) of subdivision (c) of Section 65098.1, as applicable, if a sensitive receptor is constructed, established, or permitted after the effective date of this chapter. (b) (1) Any new logistics use developments that require the rezoning of land and must undergo a municipal entitlement process shall not be subject to the requirements described in paragraph (3) of subdivision (a) of, paragraph (3) of subdivision (b) of, or paragraph (3) of subdivision (c) of Section 65098.1, as applicable, if the start of the entitlement process for the logistics use began before any sensitive receptor started its own entitlement or permitting process, unless the proposed sensitive receptor was an existing allowable use according to local zoning regulations.
(2) During a logistics use development’s entitlement process for a new or expanded logistics use, if a new sensitive receptor is proposed or established within the distances required by paragraph (3) of subdivision (a) of, paragraph (3) of subdivision (b) of, or paragraph (3) of subdivision (c) of Section 65098.1, as applicable, then those distance requirements shall not apply to the logistics use development so long as the logistics use development was not already subject to those requirements prior to the new sensitive receptor being proposed or established.
(c) This chapter shall not apply to any logistics projects that were subject to a commenced local entitlement process prior to September 30, 2024.
(d) The protection afforded by this section shall remain in effect from the time of the initial application submission through the completion of the entitlement process, including any necessary rezoning actions and through the development period. If no development activity occurs within five years of entitlement approvals, the protections shall be waived.
(e) This chapter shall not apply to a logistics project that received an approval by a local agency prior to the effective date of this chapter. For purposes of this subdivision, “approval” shall have the same meaning as set forth in subdivision (a) of Section 15352 of Chapter 3 of Division 6 of Title 14 of the California Code of Regulations.
65098.2. (a) Any new logistics use facility within 900 feet of a sensitive receptor shall have a buffer as follows:
(1) If the logistics use development is subject to the requirements of subdivision (a) or (d) of Section 65098.1, the buffer shall be 50 feet in width measured from the property line of all adjacent sensitive receptors that fully screen the project from the sensitive receptor.
(2) If the logistics use development is subject to either subdivision (b) or subdivision (c) of Section 65098.1, the buffer shall be 100 feet in width measured from the property line of all adjacent sensitive receptors that fully screen the project from the sensitive receptor.
(b) Buffer areas shall include a solid decorative wall, landscaped berm and wall, or landscaped berm 10 feet or more in height, drought tolerant natural ground landscaping with proper irrigation, and solid-screen buffering trees as described in subdivision (c).
(c) Trees shall be used as part of a solid-screen buffering treatment and planted in two rows along the length of the property line adjacent to the sensitive receptor. Trees used for this purpose shall be evergreen, drought

tolerant, to the extent feasible, composed of species with low biogenic emissions, of a minimum 36-inch box size at planting, and spaced at no greater distance than 40 feet on center. Palm trees shall not be utilized. 65098.2.5. The entry gates into the loading truck court for a new or expanded logistics use facility shall be positioned after a minimum of 50 feet of total available stacking depth inside the property line. The stacking depth shall be increased by 70 feet for every 20 loading bays beyond 50 loading bays, to the extent feasible. 65098.2.7. (a) The purpose of this section is to ensure that logistics use developments, beginning January 1, 2026, are sited in locations that minimize adverse impacts on residential communities and enhance transportation efficiency. This is achieved by restricting logistics use development to roadways that are suited to handle the associated traffic and that predominantly serve commercial uses. (b) (1) Any new logistics use development shall be sited on roadways that meet the following classifications:
(A) Arterial roads.
(B) Collector roads.
(C) Major thoroughfares.
(D) Local roads that predominantly serve commercial uses. (2) For purposes of this chapter, local roads shall be considered to predominantly serve commercial uses if more than 50 percent of the properties fronting the road within 1000 feet are designed for commercial or industrial use according to the local zoning ordinance. (c) A waiver may be granted where siting on the designated roadways pursuant to subdivision (b) is impractical due to unique geographic, economic, or infrastructure-related reasons. The waiver shall be approved by the city, county, or city and county, provided that the applicant demonstrates all of the following:
(1) There is no feasible alternative site that exists within the designated roadways. (2) A traffic analysis has been completed and submitted to the local approving authority. (3) The site is an existing industrial zone.
(4) The proposed site will incorporate mitigations to minimize traffic and environmental impacts on residential areas to the greatest extent feasible.
65098.3. (a) Anti-idling signs indicating a three-minute heavy-duty truck engine idling restriction shall be posted at logistics use developments along entrances to the site and at the truck loading bays. (b) Signs shall be installed at all heavy-duty truck exit driveways directing truck drivers to the truck route as indicated in the truck routing plan, as described in Section 65098.4, and in the state highway system. 65098.4. Prior to the issuance of a certificate of occupancy, a facility operator shall establish and submit for approval to the planning director or equivalent position for the city, county, or city and county a truck routing plan to and from the state highway system based on the latest truck route map of the city, county, or city and county. The truck routing plan shall describe the operational characteristics of the use of the facility operator, including, but not limited to, hours of operation, types of items to be stored within the building, and proposed truck routing to and from the facility to designated truck routes that, to the greatest extent possible, avoid passing sensitive receptors. The truck routing plan shall include measures, such as signage and pavement markings, queuing analysis, and enforcement, for preventing truck queuing, circling, stopping, and parking on public streets. The facility operator shall be responsible for enforcement of the truck routing plan. A revised truck routing plan shall be submitted to the planning director or equivalent position prior to a business license being issued by the city, county, or city and county for any new tenant of the property. The planning director or

equivalent position shall have discretion to determine if changes to the truck routing plan are necessary, including, but not limited to, any additional measures to alleviate truck routing and parking issues that may arise during the life of the facility.
65098.5. (a) A city, county, or city and county shall not approve development of a logistics use that does not meet or exceed the standards outlined in this chapter.
(b) This section shall not be construed to restrict the existing authority of a city, county, or city and county to deny a logistics use facility altogether.
65098.6. A city, county, or city and county shall condition approval of a logistics use on the following:
(a) Two-to-one replacement of any demolished housing unit that was occupied within the last 10 years, unless the housing unit was declared substandard by a building official, pursuant to Section 17920.3 of the Health and Safety Code, prior to purchase by the developer. For each housing unit demolished, regardless of market value of the unit, two units of affordable housing for persons and families of low or moderate income, as defined in Section 50093 of the Health and Safety Code, that are deed-restricted shall be built within the jurisdiction. Funds from any fee imposed for the replacement of demolished housing units shall be placed in a housing-specific setaside account and shall be used for housing within three years of collection. (b) If residential dwellings are affected through purchase, the developer shall be required to provide any displaced tenant with an amount equivalent to 12 months’ rent at the current rate. 65098.7. Nothing in this chapter shall be construed to supersede mitigation measures required by the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code). 65098.8. The Legislature finds and declares that the movement and storage of freight and the impact of this activity on public health and communities across the state as set forth in this chapter is a matter of statewide concern and is not a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, this chapter applies to all cities, including charter cities. 65098.9. The provisions of this chapter shall not apply to a logistics use development if it meets both of the following:
(a) The logistics use development is a mixed-use development that may create sensitive receptors on the site of the new logistics use development.
(b) There are no existing sensitive receptors within 900 feet of the loading bay.

SEC. 2. Section 65302.02 is added to the Government Code, to read:
65302.02. By January 1, 2028, except as provided for in subdivision (h), a county or city shall update its circulation element, as required by subdivision (b) of Section 65302, to do all of the following:
(a) Identify and establish specific travel routes for the transport of goods, materials, or freight for storage, transfer, or redistribution to safely accommodate additional truck traffic and avoid residential areas and sensitive receptors, as defined by Section 65098.
(b) Maximize the use of interstate or state divided highways as preferred routes for truck routes. The county or city shall also maximize use of arterial roads, major thoroughfares, and predominantly commercially oriented local streets when state or interstate highways are not utilized. Truck routes shall comply with the following:
(1) Major or minor collector streets and roads that predominantly serve commercially oriented uses shall be used for truck routes only when strictly necessary to reach existing industrial zones. (2) Trucks shall be routed via transportation arteries that minimize exposure to sensitive receptors.

(3) On and after January 1, 2028, all proposed development of a logistics use development, as defined in subdivision (d) of Section 65098, shall be accessible via arterial roads, major thoroughfares, or roads that predominantly serve commercially oriented uses.
(A) The purpose of this section is to ensure that logistics use developments are sited in locations that minimize adverse impacts on residential communities and enhance transportation efficiency. This is achieved by restricting logistics use developments to roadways that are suited to handle the associated traffic and that predominantly serve commercial uses.
(B) For purposes of this section, local roads shall be considered to predominantly serve commercial uses if more than 50 percent of the properties fronting the road within 1000 feet are designated for commercial or industrial use according to the local zoning ordinance. (c) The county or city may consult with the Department of Transportation and the California Freight Advisory Committee for technical assistance.
(d) The county or city shall provide for posting of conspicuous signage to identify truck routes and additional signage for truck parking and appropriate idling facility locations. (e) The county or city shall make truck routes publicly available in geographic information system (GIS) format and share GIS maps of the truck routes with warehouse operators, fleet operators, and truck drivers. (f) The city or county shall provide opportunities for the involvement of citizens, California Native American Indian tribes, public agencies, public utility companies, and civic, educational, and other community groups through public hearings and any other means the planning agency deems appropriate, consistent with Section 65351.
(g) The city or county shall make a diligent effort to achieve public participation of all economic segments of the community in the development of the changes required pursuant to this section. (h) The warehouse concentration region, as defined in Section 65098, shall implement the provisions of this section by January 1, 2026.
(i) The Attorney General may enforce this section.
(1) The Attorney General may impose a fine against a jurisdiction that is in violation of this section of up to fifty thousand dollars ($50,000) every six months if the required updates have not been made. (2) Upon appropriation by the Legislature, any fines collected shall be distributed by the Attorney General and returned to the local air quality management district in which the fine was imposed and be used for the district’s efforts to improve air quality.

SEC. 3. Section 40458.5 is added to the Health and Safety Code, to read:
40458.5. (a) Subject to an appropriation for this express purpose, the south coast district shall, beginning on January 1, 2026, and until January 1, 2032, deploy mobile air monitoring systems within the Counties of Riverside and San Bernardino to collect air pollution measurements in communities that are near operational logistics use developments.
(b) The south coast district shall use the data collected pursuant to subdivision (a) to conduct an air modeling analysis to evaluate the impact of air pollution on sensitive receptors, as defined in Section 65098 of the Government Code, from logistics use development operations in the Counties of Riverside and San Bernardino, including relative pollution concentrations from logistics use developments at varying distances from sensitive receptors.

(c) The south coast district shall submit its findings to the Legislature on or before January 1, 2033. On or before January 1, 2028, the south coast district shall submit an interim report to evaluate the impact of air pollution on sensitive receptors, as defined in Section 65098 of the Government Code, from logistics use development operations in the Counties of Riverside and San Bernardino, including relative pollution concentrations from logistics use developments at varying distances from sensitive receptors. This report shall be used to assess the effectiveness of setbacks on public health.
(d) (1) The requirement for submitting a report imposed pursuant to subdivision (c) is inoperative on January 1, 2040, pursuant to Section 10231.5 of the Government Code. (2) A report to be submitted pursuant to subdivision (c) shall be submitted in compliance with Section 9795 of the Government Code.

SEC. 4. Section 40522.7 is added to the Health and Safety Code, to read:
40522.7. The south coast district shall establish a process for receiving community input on how any penalties assessed and collected for violations of the Warehouse Indirect Source Rule are spent. The south coast district shall ensure a wide range of community groups are included in the process and that groups represent the geographic areas where there are high numbers of warehouse facilities.

SEC. 5. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.

September 18, 2024
The Honorable Gavin Newsom
Governor, State of California
1021 O Street, Suite 9000
Sacramento, CA 95814
RE: AB 98 (Carillo J., Reyes): Planning and zoning: logistic use: truck routes REQUEST FOR VETO (As Amended August 28, 2024)
Dear Governor Newsom,
On behalf of the City of Norco, we strongly urge your veto of AB 98 (Carrillo J., Reyes), related to warehouse and logistic use standards and truck routes.

While the bill aims to address air quality related concerns adjacent to warehouse operations, this problematic gut-and-amend includes stringent requirements that will severely impact the ability for local jurisdictions to site based on unique geographic and community characteristics, and stifles economic and workforce development in their communities.

The interests and perspectives of those most intimately involved at the local level and responsible for implementation efforts were not involved in crafting AB 98. We believe that a more robust, inclusive, and transparent process leads to more informed policy solutions and AB 98 did not meet this mark. Instead, the bill was a gut-and-amend in the 11th hour of the legislative session. The bill could not be amended due to the 72-hour in print rule, preventing substantive and meaningful public input.

For these process and procedural reasons alone, we request AB 98 be vetoed; however, the City of Norco has serious concerns regarding the substantive policy solution that AB 98 would mandate for all cities and counties if chaptered into law.
1) AB 98 takes local community-based solutions completely off the table.

We are extremely concerned that this measure overly constrains local governments by outright limiting a city’s ability to site a new or expanded use of a logistic use development or warehouse that are within 900 feet of a sensitive receptors. Local decision making is essential to ensure zoning regulations are tailored to the unique needs and concerns of various communities. Cities and counties have good neighbor policies and local ordinances that make them better equipped to determine appropriate setback requirements and conditions for logistic use developments based on the specific geographic and regional factors in their communities and allows local governments the ability to engage the public. Cities are actively siting and zoning to prepare for community growth and development. Cities are already planning for housing, lowering vehicle miles traveled, updating climate action plans, zoning for open space and greenbelts, and more. We

believe that local governments should retain their abilities to exercise local discretion when siting logistic use developments prior to any state-mandated conditions being required. 2) AB 98 creates an uneven playing field for local governments, creating winners and losers based on geography, hampering employment opportunities, and limiting future economic growth.

AB 98 establishes a tiered framework that applies different setback requirements and warehouse conditions depending on existing industrial or re-zoned sites across the state. This would make logistic use and warehouse developments in certain cities or counties more attractive compared to other cities or counties. This uneven playing field will benefit certain local governments to the detriment of others, in some cases solely based on geographic differences, hindering the ability of cities and counties to provide future job opportunities for their communities.

Additionally, several definitions in the bill would make the implementation of the measure extremely complex and remain problematic. The definition of ‘logistic use’ would include that the development may incidentally serve retail customers for onsite purchases and the bill also states that a logistic use development may not sell directly to consumers. This is contradictory and misleading. Similarly, the definition of ‘sensitive receptor’ would include schools. Local governments are not responsible for the siting of schools and therefore would have no control should a school re-locate directly adjacent to a logistic use development or warehouse.
3) AB 98 proposes a cart-before-the-horse approach that lacks science-based evidence for the standards imposed.

AB 98 would require the South Coast Air Quality Management District (SCAQMD) to deploy mobile air monitoring systems within the counties of Riverside and San Bernardino beginning January 1, 2026 to January 1, 2032 and after conducting an air modeling analysis to evaluate the impact of air pollution on sensitive receptors from logistic use development operations, submit findings to the legislature by January 1, 2033. It is pre-emptive to require such stringent statewide standards, including setback distances, when sound scientific data hasn’t been collected and isn’t available to justify these prescriptive requirements.

Further, it is unclear why the statewide setback standards would be based on air quality monitoring and analysis from only one region of the state. Therefore, the absences of air quality monitoring and modeling across the state to ensure such setback standards are in fact based on the appropriate regional data another foundation element of AB 98 that is extremely problematic.

The stringent standards in the bill are new and compounding on existing laws and regulations that local governments are already complying with. Without sound science backing the need for additional requirements, AB 98 would simply provide greater constraints that will hurt local communities. As noted, cities are already addressing environmental impacts by complying with existing regulatory frameworks such as 1) implementing the California Environmental Quality Act (CEQA), 2) developing regional transportation and land use plans through regional council of governments, 3) implementing the Advanced Clean Fleet

(ACF) regulations promulgated by the California Air Resources Board, and 4) meeting existing rules related to air quality standards, such as by the SCAQMD, which has established regulations to limit emissions from certain types of businesses, including logistics and warehouse facilities. Ultimately, this bill would set a precedent of usurping local control without a sound scientific basis. 4) The required circulation element update is extensive and triggers existing statutorily required updates to the circulation element to now meet the deadlines included in AB 98.

AB 98 would require all local governments to update their circulation element with truck routing information by either January 1, 2028 or, if located in San Bernardino and Riverside counties, by January 1, 2026. This would require a local government to make these updates within several years and for the Inland Empire region, within one year of the statute coming into effect. The circulation element update would be required, even if a local government is not approving warehouse or logistic use development and would result in costly fines, if the element update is not completed within the deadline. The bill thrusts these extensive provisions onto local governments with no regard to the actual development of logistic uses and warehouses in their communities, which is a fundamental flaw in the bill.

An unintended consequence of AB 98 would trigger that, based on the deadlines in the bill, existing statute that requires cities and counties to update their circulation element with protective safety measures for bicyclists and pedestrians must also meet the January 1, 2026 and January 1, 2028 deadlines, as prescribed in the bill. This would double down on the requirement for local governments to complete both updates in the circulation element in this time frame, otherwise the enforcement provisions and costly fines would apply.

The circulation element update would also require that truck traffic avoid residential areas and sensitive receptors. The bill would limit trucks traveling from highways to industrial zoned areas to only use major and minor collector streets and roads that predominantly serve commercially oriented uses. Communities are uniquely situated and not all regions and roadway networks look the same and certainly many cannot meet these restrictive requirements. Further understanding of the potential implications in small to mid-size communities, and suburban, rural and urban communities must be a first step taken to further analyzed unintended consequences before imposing such one-size-fit-all restrictions. 5) The requirements of AB 98 will impose costly, unfunded mandates on local governments.

AB 98 would require local governments to comply with the extensive standards included in the bill and does not offer any form of cost reimbursement based on these mandates. Local governments work hard to comply with existing statute and regulations, such as CEQA, ACF, among many other state-mandated requirements. By adding new and complicating requirements, without including a mechanism for local governments to receive reimbursement for such mandated costs is unreasonable. This would make it more challenging for local governments to meet the demands in the bill which should ultimately be the intent of the legislation, should be to encourage local governments to achieve the proposed requirements, not make it harder with greater unfunded mandates.

Cities and counties estimate the circulation element update alone would be an additional cost on local governments, outside of their existing general plan updates, of approximately $54 million to $749 million for all 58 counties and 483 cities to comply, roughly anywhere between $100,000 to the low millions for each city or county to comply. Some cities will have greater costs due to the complexities of incorporating traffic patterns and fewer choices to de-conflict freight movement with residential traffic on a city’s road network.

AB 98 disregards the enormous local costs that would likely be quadrupled from additional legislation this year that will require a safety element update, a conservation element update, and bicycle safety update, along with the circulation element in AB 98.
6) The enforcement provisions are overly harsh, aiming to punish all local governments.

AB 98 would authorize the Attorney General to impose a fine of $50,000 every six months on local jurisdictions that do not complete their circulation element updates. Other legislation that has included similar fines, have been contingent upon a court order or litigation prior to such fines being imposed. With a ‘no-questions-asked’ approach to enforcement, local governments are being targeted with this punitive provision. Furthermore, this provision singles out local governments based on the completion of their circulation element update, rather than focusing on the implementation of all of the standards included in the bill. It should be noted that there are no other enforcement provisions in the bill for any of the other standards that are proposed.

For these reasons, the City of Norco strongly requests your veto on AB 98 (Carrillo, J., Reyes).

Sincerely,
Kevin Bash
Mayor
City of Norco
cc: The Honorable Juan Carrillo ([email protected]) The Honorable Eloise Gomez Reyes ([email protected]) League Regional Public Affairs Manager, Jesse Ramirez ([email protected]) League of California Cities ([email protected])

City Council

STAFF REPORT
Date: September 18, 2024 Agenda Item:

3.D.

To: Honorable Mayor and City Council Members
From: Amanda Hamilton, Facilities and Maintenance
Director
Prepared By: Amanda Hamilton, Facilities and Maintenance Director
Department: Facilities and Maintenance
SUBJECT:

Approval Request for Supplemental Agreement Extension for CDBG Funding RECOMMENDATION:

Approve the attached Community Development Block Grant (CDBG) supplemental agreement extension request for the Community Center Park ADA Synthetic Poured-inPlace Surface Project. The Mayor will sign the extension letter upon the Council’s approval.

SUMMARY:

On December 7, 2023, the City of Norco entered into a Supplemental Agreement with the County of Riverside regarding Community Development Block Grant (CDBG) funds for the Community Center Park ADA Synthetic Poured-in-Place Surface Project, which is set to expire on June 30, 2024. To ensure the project’s continuity and regulatory compliance, the City Council is requested to review and approve the attached extension request letter for the Mayor’s signature.

BACKGROUND:

On December 7, 2023, the City of Norco entered into a Supplemental Agreement with the County of Riverside regarding Community Development Block Grant (CDBG) funds for the Community Center Park ADA Synthetic Poured-in-Place Surface Project, which was set to expire on June 30, 2024. In accordance with Section 5 of the Agreement (Attachment C), titled "Extension of Time," an extension may be granted if the project is not substantially completed by the deadline due to a force majeure event, as detailed in Section 40 of the Agreement.

The City of Norco formally requests an extension of the Agreement (Attachment A) until June 30, 2025, to ensure the successful completion of the Community Center Park ADA

Synthetic Poured-in-Place Surface Project. Delays have been attributed to the need to prioritize other CDBG-funded projects and funding constraints. Currently in the design phase, with an approved funding amount of $60,782 (Attachment B), the project requires additional time to reach completion.

Community Center Park is a vital recreational area for local families and children engaged in various programs at the Community Center. The existing wood chip play surface frequently requires replacement and presents ADA accessibility challenges due to changes in elevation. The primary goal is to replace the wood chips with an ADAcompliant synthetic poured-in-place surface, which will be more durable and easier to maintain.

Recent updates and recommendations from Riverside County Housing and Workforce Solutions necessitate revisions to agreement procedures to ensure full regulatory compliance, including addressing ongoing CDBG-funded projects from previous years.

To avoid disruption and ensure adherence to regulatory requirements, please approve and have the Mayor sign the attached supplemental agreement extension request letter for the CDBG funding related to the Community Center Park ADA Synthetic Poured-inPlace Surface Project. This extension will provide the necessary time to complete the project effectively.

FISCAL IMPACT:

The U.S. Department of Housing and Urban Development will fund this project through Riverside County Housing and Workforce Solutions on a reimbursement basis. The approved funding of $60,782 for the Community Center Park ADA Synthetic Poured-inPlace Project is allocated in the City’s FY 2023-24 Capital Improvement Program, specifically funded with CDBG resources. This project has been formally approved through CDBG.

RELATIONSHIP TO STRATEGIC PLAN:

This item closely aligns with Strategic Plan No. 3. Economic Development and Financial Stability: Assure financial stability by expanding development efforts, diversifying revenue sources and continuing prudent financial management.

REVIEWED AND APPROVED BY:

Approved by: Lisette Free, Interim City Manager
Approved as to Form: Harper and Burns, LLP, City Attorney ATTACHMENT(S):

Attachment A City of Norco Supplemental Agreement Extension Request Attachment B FY 23-24 CDBG Grant Approval Letter
Attachment C Supplemental Agreement Use 2023-2024 Community Development Block Grant Funds_Dec 2023

September 18, 2024
County of Riverside HWS
Susana Orozco
3403 Tenth Street, Suite 300
Riverside, CA 92501
Dear Ms. Orozco
Subject: Supplemental Agreement Extension Request
Pursuant to the Sponsor/Supplemental Agreement for the use of Community Development Block Grant Funds ("Agreement"), dated December 7, 2023, the agreement expired on June 30, 2024.

Under Section 5, Extension of Time, if the Project(s) are not substantially completed by the deadline set forth in the applicable completion schedule(s) due to a force majeure event (refer to Section 40 below), the COUNTY may consider extending the completion schedule for the Community Center Park ADA Synthetic Poured in Place Surface project(s).

City of Norco is formally notifying the County of Riverside, Housing and Workforce Solutions, in writing of the request for an extension of time to complete the project. We are requesting an extension of the agreement until June 30, 2025.

Should you have any questions, please contact Amanda Hamilton at (951) 270-5633.

Sincerely,
Kevin Bash
Mayor

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File No.: 2.NR.61-23, 2.NR.62-

SUPPLEMENTAL AGREEMENT FOR THE USE OF
2023-2024 COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS
This Supplemental Agreement (“Agreement”) is entered into this day of and between the COUNTY OF RIVERSIDE, a political subdivisionof the State of California, herein called, "COUNTY," and the CITY OF NORCO, herein called "CITY." COUNTY and CITY are collectively referred to as “Parties” and individually as “Party.” The COUNTY and CITY mutually agree as follows:

1. GENERAL. COUNTY and CITY have executed a Cooperation Agreement, dated November 10, 2020 (“Cooperation Agreement”), whereby CITY elected to participatewith COUNTY, which has quali?ed as an "Urban County" for purposes of receiving Community Development Block Grant (CDBG) funds (“CDBG”), and to assist and undertake essential community development and housing assistance activities pursuant to the Housing and Community Development Act of 1974, Title 1, as amended,Public Law 93-383 hereinafter referred to as "Act." Said Cooperation Agreement, dated November 10, 2020, is incorporated herein by reference and made a part of this Agreement as if each and every provision was set forth herein.

2. PURPOSE. CITY has been allocated $73,282 in CDBG Entitlement funds for the 2023- 2024 CDBG program year. CITY promises and agrees to undertake and assist with the community development activities, within itsjurisdiction, by utilizing the sum of $73,282 CDBG EntitlementFunds, as speci?cally identi?ed in Exhibit(s) A, and B, attached hereto, and are incorporated herein by this reference, for the following project(s) (collectively, the “Projects”):

A) 2.NR.61-23 Community Center Park ADA Synthetic Poured In Place Surface Project, $60,782.

B) 2.NR.62-23 Senior Center Recreation and Community Services, $12,500.

3. TERM OF AGREEMENT. The term of this Agreement for the implementationof the Project(s) shall be for a period of one (1) year from July 1, 2023, to termination on June 30, 2024.

4. COMPLETION SCHEDULE. CITY shall proceed consistent with the completion schedul e
set forth in Exhibit s A and B, attached hereto and incorporatedherein.

pecan/taker, 2023, by

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Heidi Marshall, Director
Riverside County HWS
PO. Box 1528
Riverside, CA 92502
CLY.

Lori Sassoon, City Manager
City of Norco
2870 Clark Avenue
Norco, CA 92860
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5. EXTENSION OF TIME. In the event the Project(s) are not substantially completed by the time set forth in the applicable completion schedule(s) due to a force majeure event (See Section 40 below), the COUNTY may consider extending the schedule for the completionof the project(s). Times of performance for other activities may also be extended in writing by COUNTY. If substantialprogress toward completion in conformance with the completion schedule, as determined by COUNTY in its discretion, of the project(s) not made during the term of this Supplemental Agreement, COUNTY may suspend or terminate this Supplemental Agreement pursuant to the termination procedures set forth in the section titled "Termination," and the entitlement funds associated with the Project(s) may be reprogrammed by the COUNTY after appropriatenotice is provided to the City.

6. LETTER TO PROCEED. CITY shall not initiate nor incur expenses for the CDBG — funded Projects or activities covered under the terms of this Supplemental Agreement as set forth in Exhibit(s) A, and B, attached hereto, prior to receiving written authorizationfrom COUNTY to proceed.

7. NOTICES. Each notice, request, demand, consent, approval or other communicatio n
(hereinafter in this Section referred to collectively as “notices” and referred to singly as a “notice”) which the CITY or COUNTY is required or permitted to give to the other party pursuant to this Agreement shall be in writing and shall be deemed to have been duly and suf?ciently given if: (a) personally delivered with proof of delivery thereof (any notice so delivered shall be deemed to have been received at the time so delivered); or (b) sent by Federal Express (or other similar national overnight courier) designating early morning delivery (any notice so delivered shall be deemed to have been received on the next Business Day following receipt‘by the courier); or (c) sent by United States registered or certi?ed mail, return receipt requested, postage prepaid, at a post of?ce regularly maintained by the United States Postal Service (any notice so sent shall be deemed to have been received two days after mailing in the United States), addressed to the respective parties as follows:

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8. DISBURSEMENT OF FUNDS.

A. COUNTY'S Board of Supervisors shall determine the ?nal disposition and distribution of all funds received by COUNTY under the Act consistent with Sections 2 and 3 of this Supplemental Agreement. COUNTY, through its Department of Housing, and Workforce Solutions, shall make payment of the CDBG funds to CITY as set forth in the attached Exhibit(s) A, and B. It is the CITY’S responsibility to monitor all project activities set forth in the attached Exhibit(s) A, and B, and to ensure compliance with applicable federal regulations and the terms of this Supplemental Agreement.

B. CITY shall comply with timely drawdown of CDBG Entitlement funding by expeditiously implementing and completing the COUNTY-approved, CDBG-funded Projects. CITY acknowledges that CITY’S drawdown performance directly impacts the COUNTY’S overall program drawdown rate. If the CITY’S unobligated CDBG fund balance, as of January 31, 2024, exceeds one hundred and seventy-?ve percent (175%) of the CITY’S 2023-2024 CDBG allocation, the COUNTY may, in its sole discretion, take the necessary administrative actions to reduce the CITY’SCDBG fund balance. Necessary actions include, but are not limited to, reprogramming the excess CDBG fund balance to other eligible activities as selected by COUNTY. COUNTY may, in its sole and absolute discretion, authorize CITY in writing, prior to January 31, 2024, to exceed the CDBG fund balance requirement.

C. CITY shall comply with timely drawdown of CDBG funds by submitting monthly requests for reimbursement or other COUNTY approved reimbursement schedules. All disbursements of CDBG funds will be on a reimbursement basis and made within thirty (30) days after the COUNTY has received the CITY’S reimbursement request including documentationsupporting expenditures.

D. All authorized obligations incurred in the performance of the Supplemental Agreement for projects eligible under the following CDBG regulations must be reported in writing to COUNTY no later than June 1 2024:

1. Acquisition [24 Code of Federal Regulations (CFR) 570.201 (a)] Clearance Activities [24 CFR 570.201 (d)]
Interim Assistance [24 CFR 570.201 (t)]
Code Enforcement [24 CFR 570.202 (c)]
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All public service activities [24 CFR 570.201 (e)] and other eligible activities under this Supplemental Agreement must be implemented,completed, and obligations reported in writing to the COUNTY by the CITY no later than the completion schedules set forth in the attachedExhibits to this Supplemental Agreement. ”CFR” as used herein refers to the Code of Federal Regulations.

9. RECORDS AND INSPECTIONS.

A. CITY shall establish and maintain ?nancial, programmatic, statistical, and other supporting records of its operations and ?nancial activities in accordance with the Uniform AdministrativeRequirements,Cost Principles,and Audit Requirements for Federal Awards (2 CFR Part 200), and 24 CFR Section 570.502 (a), as they relate to the acceptance and use of federal funds under this Agreement. Said records shall be retained for a period of four (4) years from the date that the activity or program funded with the CDBG Grant is closed out by the COUNTY and reported as complete in the Comprehensive Annual Performance and Evaluation Report (CAPER). Exceptionsto the four (4) year retention period requirement, pursuant to 2 CFR 200.333 include, but not limited to, the following:
i. if any litigation, claim, or audit is started prior to the expirationof the four (4) year period;
ii. when the CITY is noti?ed in writing by the COUNTY, HUD, or other Federal agency to extend the retention period;
iii. records for real property and equipment acquired with CDBG funds must be retained for four (4) years after ?nal disposition;
iv. when the records are transferred by the CITY to the COUNTY, HUD, or other Federal agency, the four (4) year period is not applicable.

B. CITY shall obtain an external audit in accordance with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Section 200.500). Audits shall usually be performed annually but not less frequently than every two years. Nonpro?t institutions and government agencies that expend less than $750,000 a year in Federal awards are exempt from Federal audit requirements, but records must be available for review by appropriate of?cials of the Federal grantor agency or subgranting entity. The audit report shall be submitted to the COUNTY within 180 days after the end of the COUNTY'S ?scal year.

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C. CITY shall maintain a separate account for the CITY’S CDBG Entitlementfunds received as set forth in Exhibit(s) A, and B, attached hereto.

D. Pursuant to 2 CFR 200.336, CITY shall, during the normal business hours, make available to COUNTY, the US. Department of Housing and Urban Development (HUD), or other authorized representative,for the examination and copying, all of its records and other materials with respect to matters covered by this Agreement and provide reasonable access to CITY staff for the purpose of interview and discussion related to the records and documents.

E. CITY shall not retain any program income as de?ned in 24 CFR 570.500. Said program income shall be used only for the activities that are the subject of this Agreement. Further, all provisions of this Agreement shall apply to such activities.

F. The CITY shall ensure that at least ?fty-one percent (51%) of the persons bene?ting from all CDBG-?mded activities or projects designated as serving limited clientele [24 CFR 570.208(a)(2)(i)] are of low and moderate-incomeand meet the applicablehousehold income guidelines.

The CITY shall provide the required income certi?cation and direct bene?t documentation, in writing, to the COUNTY pursuant to the reporting requirement of each activity as set forth in Exhibit(s) A, and B, attached hereto. In the event that CITY engages the services of a sub-contractor to implementCDBGfunded activities, the CITY must collect, in writing, all required income certi?cation and direct bene?t documentation from subcontractors prior to submittal to the COUNTY pursuant to the reporting requirement of each activity as set forth in Exhibit(s) A, and B, attached hereto.

10. COMPLIANCE WITH LAWS. CITY shall comply with all applicable federal, state, and local laws, regulations, and ordinances and any amendments thereto and the federal regulations and guidelines now or hereafter enacted pursuant to the Act. More particularly, CITY isto comply with those regulations found in the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200), and 24 CFR Part 570. CITY is to abide by the provisions of the Community Development Block Grant Manual, prepared by COUNTY and cited in the above—mentionedCooperation Agreement. CITY shall comply, if applicable, with Section 3 of the Housing & Urban DeVelopmentAct of 1968 (12 U.S.C.A. Section 1701u), as amended, a copy of which is attached hereto as Exhibit “S”, and incorporated herein by this reference. CITY shall adhere to the regulations as set forth in Exhibit “R”, attached hereto and incorporated herein by this reference,

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pertaining to inherently religious activities. Further, CITY must comply with the requirements of the Build America, Buy America (“BABA”) Act, 41 USC 8301 note, and all applicable rules and notices, as may be amended, if applicable to the CITY’S infrastructure project. Pursuant to HUD’s Notice, “Public Interest Phased Implementation Waiver for FY 2022 and 2023 ofBuild America, Buy America Provisions as Applied to Recipients ofHUD Federal Assistance ”(88 FR 17001), any ?Jnds obligated by HUD on or after the applicable listed effective dates, are subject to BABA requirements, unless expected by a waiver. Finally, CITY shall comply with the Additional Federal Requirements, if applicable, attached hereto as Exhibit “AFR”, and incorporated herein by this reference.

11. COOPERATION WITH HOUSING ACTIVITIES. CITY shall cooperate with COUNTY in undertaking essential community development and housing assistance activities, speci?cally urban renewal and public assistance housing, and shall assist COUNTY in implementing and undertaking the goals and strategies identi?ed in the 2019-2024 Five Year Consolidated Plan, pursuant to 24 CFR Part 91 and other requirements of the Community Development Block Grant Program.

12. LEAD AGENCY FOR COMPLIANCE WITH THE CALIFORNIA
ENVIRONMENTAL UALITY ACT CE A . Pursuant to Title 14 CCR Section 1501(d), the CITY is designated as the lead agency for the projects that are the subject matter of this Supplemental Agreement.

13. HOLD HARMLESS AND INDEMNIFICATION. In contemplationof the provisions of Section 895.2 of the California Government Code imposing certain tort liability jointly upon public entities solely by reason of such entities being parties to an agreement as de?ned by Section 895 of the Code, the Parties hereto, pursuant to the authorizationcontained in Section 895.4 and 895.6 of the Code, agree that each Party shall be liable for any damages including, but not limited to, claims, demands, losses, liabilities, costs and expenses including reasonable attorneys’ fees, resulting from the negligent or wrongful acts or omissions of their employees or agents in the performance of this Agreement, and each Party shall indemnify, defend and hold harmless the other Parties from such claims, demands, damages, losses or liabilities for their negligence.

The hold harmless and indemni?cation obligations set forth herein shall survive the termination

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and expiration of this Agreement. In the event there is con?ict between this clause and California Civil Code Section 2782, this clause shall be interpretedto comply with Civil Code 2782. Such interpretation shall not relieve the CITY from indemnifying the Indemniteesto the fullest extent allowed by law.

14. INSURANCE. Without limiting or diminishing the CITY’Sobligation to indemnify or hold the COUNTY harmless, CITY shall procure and maintain or cause to be maintained, at its sole cost and expense, the following insurance coverage’s during the term of this Agreement. As respects to the insurance section only, the COUNTY herein refers to the County of Riverside, its Agencies, Districts, Special Districts, and Departments, their respective directors, of?cers, Board of COUNTY OF RIVERSIDE Supervisors, employees, elected or appointed of?cials, agents, or representatives as Additional Insureds
a. Workers’ Com ensation:

If the CITY has employees as de?ned by the State of California, the CITY shall maintain statutory Workers‘ Compensation Insurance (Coverage A) as prescribed by the laws of the State of California. Policy shall include Employers’ Liability (Coverage B) including OccupationalDisease with limits not less than $1,000,000 per person per accident. The policy shall be endorsed to waive subrogation in favor of the County of Riverside.
b. Commercial General Liabili
Commercial General Liability insurance coverage, including but not limited to, premises liability, contractual liability, products and completed operations liability, personal and advertising injury, and cross liability coverage, covering claims which may arise from or out of CITY’S performance of its obligations hereunder. Policy shall name the County of Riverside as Additional Insured. Policy’s limit of liability shall not be less than $2,000,000 per occurrence combined single limit. If such insurance contains a general aggregate limit, it shall apply separately to this agreement or be no less than two (2) times the occurrence limit.
b.l. If the work will include contact with minors, and the CommercialGeneral Liability policy is not endorsed to include af?rmative coverage for sexual abuse or molestation, Vendor/Contractor shall obtain and maintain a policy covering Sexual Abuse and Molestationwith a limit no less than $2,000,000 per occurrence or claim.

c. Vehicle Liabili
If vehicles or mobile equipment are used in the performance of the obligations under this Agreement, then CITY shall maintain liability insurance for all owned, non-ownedor hired vehicles so used in an amount not less than $1,000,000 per occurrence combined single limit. If such insurance contains a general aggregate limit, it shall apply separately to this agreement or be no less than two (2) times the occurrence limit. Policy shall name the County of Riverside as Additional Insured. d. General Insurance Provisions — All lines:
(i). Any insurance carrier providing insurance coverage hereunder shall be admitted to the State of California and have an A M BEST rating of not less than A: VIII (A28) unless such requirements are waived, in writing, by the County Risk Manager. If the County’s Risk Manager waives a requirement for a particular insurer such waiver is only valid for that speci?c insurer and only for one policy term.
(ii). The CITY must declare its insurance self-insuredretentions. If such selfinsured retentions exceed $500,000 per occurrence such retentions shall have the prior written consent of theCounty Risk Manager before the commencement of operations under this Agreement. Upon noti?cation of self-insured retention unacceptable to the COUNTY, and at the election of the Country’s Risk Manager, CITY’S carriers shall either; 1)reduce or eliminate such self-insured retention as respects this Agreement with the COUNTY, or 2) procure a bond which guarantees payment of losses and related investigations, claims administration, and defense costs and expenses. (iii). CITY shall cause CITY’S insurance carrier(s) to furnish the County of Riverside with either 1) a properly executed original Certi?cate(s) of Insurance and certi?ed original copies of Endorsements effecting coverage as required herein, and 2) if requested to do so orally or in writing by the County Risk Manager, provide original Certi?ed copies of policies including all Endorsements and all attachments thereto, showing such insurance is in full force and effect. Further, said Certi?cate(s) and policies of insurance shall contain the covenant of the insurance carrier(s) that thirty (30) days written notice shall be given to the County of Riverside prior to any material modi?cation, cancellation, expiration or reduction in coverage of such insurance. In the event of a

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material modi?cation, cancellation, expiration, or reduction in coverage, this Agreement shall terminate forthwith, unless the County of Riverside receives, priorto such effective date, another properlyexecuted original Certi?cate of Insurance and original copies of endorsements or certi?ed original policies, including all endorsements and attachments thereto evidencing coverage’s set forth herein and the insurance required herein is in ?all force and effect. CITY shall not commence operations until the COUNTY has been ?nnished original Certi?cate (3) of Insurance and certi?ed original copies of endorsements and if requested, certi?ed original policies of insurance including all endorsements and any and all other attachments as required in this Section. An individual authorized by the insurance carrier to do so on its behalf shall sign the original endorsements for each policy and the Certi?cate of Insurance.
(iv). It is understood and agreed to by the parties hereto that the CITY’S insurance shall be construed as primary insurance, and the COUNTY'S insurance and/or deductibles and/or self-insured retention’s or self-insuredprograms shall not be construed as contributory. (v). If, during the term of this Agreement or any extension thereof, there is a material change in the scope of services; or, there is a material change in the equipmentto be used in the performance of the scope of or, the term of this Agreement, including any extensions thereof, exceeds ?ve (5) years, the COUNTY reserves the right to adjust the types of insurance required under this Agreement and the monetary limits of liability for the insurance coverage’s currently requiredherein, if; in the County Risk Manager's reasonable judgment, the amount or type of insurance carried by the CITY has become inadequate.
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28 (vi). CITY shall pass down the insurance obligations contained herein to all tiers of subcontractors working under this Agreement.
(vii). The insurance requirements contained in this Agreement may be met with a program(s) of self-insurance acceptable to the COUNTY. (viii). CITY agrees to notify COUNTY of any claim by a third party or any incident or event that may give rise to a claim arising from the performance of this Agreement.

15. INDEPENDENT CONTRACTOR. The CITY is, for purposes relating to this Supplemental Agreement, an independent contractor and shall not be deemed an employee of the

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25 COUNTY. It is expressly understood and agreed that the CITY (including its employees, agents and subcontractor’s) shall in no event be entitled to any bene?ts to which the COUNTY employees are entitled, including but not limited to overtime, any retirement bene?ts, worker‘s compensationbene?ts, and injury leave or other leave bene?ts. There shall be no employer-employee relationship between the parties; and the CITY shall hold the COUNTY harmless from any and all claims that may be made against the COUNTY based upon any contention by a third party that an employer-employee relationship exists by reason of this SupplementalAgreement. It is further understood and agreed by the partiesthat the CITY in the performance of this SupplementalAgreement is subject to the control or direction of the COUNTY merely as to the results to be accomplished and not as .to the means and methods for accomplishing the results.

16. NONDISCRIMINATION. CITY shall abide by 24 CFR Sections 570.601 and 570.602 of Title 24 of the Code of Federal Regulations which requiresthat no person in the United States shall on the grounds of race, color, national origin, sex, sexual orientation, gender identity, or veterans status be excluded from participationin, be denied the bene?ts of, or be subjected to discriminationunder any program or activity funded in whole or in part WithCommunity Development funds.

CITY shall abide by and include in any subcontracts to perform work under this Supplemental Agreement, the following. clause:
"During the performance of this Supplemental Agreement, CITY and its subcontractors shall not unlawfully discriminate against any employee or applicant for employment because of race, religion, color, national origin, ancestry, physical disability, medical condition, marital status, veterans status, sexual orientation, gender identity, age (over 40) or sex. CITY and subcontractors shall insure that the evaluation and treatment of their employees and applicant s
for employment are free of such discrimination. CITY and subcontractors shall comply with the provisions of the Fair Employment and Housing Act (California Government Code Section 12900 et seq.). The applicable regulations of the Fair Employment and Housing Commission are implementing California Government Code Section 12990 et seq.,set forth in Chapter 1 of Division 4.1 of Title 2 of the California Administrative Code are incorporated into this Agreement by reference and made a part hereof as if set forth in full. CITY and its subcontractors shall give written notice of their obligations under this clause to labor organizations with which

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they have a collective bargaining or other agreemen ."

17. PROHIBITION AGAINST CONFLICTS OF INTEREST
A. CITY and its assigns, employees, agents, consultants, of?cers and elected and appointed of?cials shall become familiar with and shall comply with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200) and the CDBG regulations prohibiting con?icts of interest contained in 24 CFR 570.611 B. The Subrecipient shall maintain a written code or standards of conductthat shall govern the performance of its of?cers, employees or agents engaged in the award and administrationof contracts supported by Federal funds.

C. No employee, of?cer or agent of the Subrecipient shall participate in the selection, or in the award, or administration of, a contract supported by Federal ?mds if a con?ict of interest, real or apparent, would be involved.

D. No covered persons who exercise or have exercised any functions or responsibilities with respect to CDBG-assisted activities, or who are in a position to participate in a decision-making process or gain inside information with regard to such activities, may obtain a ?nancial interest in any contract, or have a ?nancial interest in any contract, subcontract, or agreement with respect to the CDBG-assisted activity, or with respect to the proceeds from the CDBG-assistedactivity, either for themselves or those with whom they have business or immediate family ties, during their tenure or for a period of one (1) year thereafter. For purposes of this paragraph, a “covered person” includes any person who is an employee, agent, consultant, of?cer, or elected or appointedof?cial of the Grantee, the Subrecipient, or any designated public agency.

E. CITY understands and agrees that no waiver of exception can be granted to the prohibition against con?ict of interest except upon written approval of HUD pursuant to 24 CFR 570.611(d). Any request by CITY for an exception shall ?rst be reviewed by COUNTY to determine whether such request is appropriate for submission to HUD in the COUNTY’S sole and absolute discretion. In determining whether such request is appropriate for submission to HUD, COUNTY will considerthe factors listed in 24 CFR 570.611(d)(2).

F. Prior to the distribution of any CDBG funding under this Supplemental Agreement, CITY shall provide COUNTY, in writing, a list of all employees, agents, consultants,

of?cers and elected and appointed of?cials who are in a position to participate in a decision making process, exerciseany functions or responsibilities,or gain inside information with respect to the CDBG activities funded under this Agreement. CITY shall also promptly disclose to COUNTY any potential con?ict, including even the appearance of con?ict that may arise with respect to the CDBG activities funded under this Supplemental Agreement.

G. Any violation of this Section 17 shall be deemed a material breach of this Supplemental Agreement, and the Supplemental Agreement shall be immediately terminated by the COUNTY.

18. LOBBYING. CITY certi?es to the best of its knowledge and belief, that:
a. No federally-appropriated?Jnds have been paid or will be paid, by or on behalf of the CITY, to any person for in?uencing or attempting to in?uence an of?cer or employee of any agency, a member of Congress, an of?cer or employee of Congress, or an employee of a member of Congress in connection with the awarding of any federal contract, the making of any federal grant, the making of any federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modi?cation of any federal contract, grant, loan, or cooperative agreement.
b. If any funds other than federally-appropriatedfunds have been paid or will be paid to any person for in?uencing or attempting to in?uence an of?cer or employee of any agency, a member ofCongress, an of?cer or employee of Congress, or an employee of a member of Congress in connection with this federal contract, grant, loan, or cooperative agreement, the CITY shall complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions. c. CITY shall require that the language of this certi?cation be includedin the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all sub-recipients shall certify and disclose accordingly.

This certi?cation is a material representation of fact upon which reliance was placed when this transaction was made or entered into.

19. TERMINATION.

A. CITY. CITY may not terminate this Agreement except upon express written consent of COUNTY, pursuant to 2 CFR 200.339 (a)(3).

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B. COUNTY. Notwithstanding the provisions of Paragraph 19a above, COUNTY may suspend or terminate this Supplemental Agreement upon a ten (10) day written notice to CITY of action being taken and the reason for such action including, but not limited to, the following reasons:
(1) In the event CITY fails to perform the covenants herein contained at such times and in such manner as provided in this Supplemental Agreement; and (2) In the event there is a con?ict with any federal, state or local law, ordinance, regulation or rule rendering any of the provisions of this Supplemental Agreement invalid or untenable; or
(3) In the event the funding from the Department of Housing and Urban Development referred to in Sections 1 and 2 above is terminated or otherwise becomes unavailable.

C. This Agreement may be terminated and/or ?lnding suspended, in whole or in part, for cause in accordance with the Uniform Administrative Requirements, Cost Principles, and Audi t Requirements for Federal Awards (2 CFR 200.339). Cause shall be based on the failure of the CITY to materially comply with either the terms or conditions of this Agreement. Upon suspensionof funding, the CITY agrees not to incur any costs related thereto, or connected with, any area of con?ict from which the COUNTY has determined that suspension of funds is necessary. CITY acknowledges that failure to comply with Federal statutes, regulations, or the terms and conditions of this Agreement may be considered by the COUNTY in evaluating future CDBG and non-CDBG funding applicationssubmitted by CITY.

D. Upon suspension or termination of this Supplemental Agreement, CITY shall return any unencumbered funds which it has been provided by COUNTY. In accepting said funds, COUNTY does not waive any claim or cause of action it may have against CITY for breach of this Supplemental Agreement.

E. Reversion of Assets

1. Upon expiration or termination of this Supplemental Agreement, the CITY shall transfer to the COUNTY any CDBG funds on hand at the time of expiration of the Supplemental Agreement as well as any accounts receivable held by CITY which are attributableto the use of CDBG funds awarded pursuant to this Supplemental Agreement.

2. Any real property under the CITY’S control that was acquired or improved

0 Above 80% MHI
0 Between 50% and 80% MHI (Low-Income)
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in whole or in part with CDBG funds (including CDBG funds provided to the CITY in the form of a loan) in excess of $25,000 is either:
(i) Used to meet one of the National Objectives pursuant to 24 CFR 570.208 until ?ve years after expirationof this agreement, or for such longer period of time as determined to be appropriate by the COUNTY; or
(ii) Not used in accordance with Clause (i) above, in which event the CITY shall pay the COUNTY an amount equal to the current market value of the property less any portion of the value attributable to expenditures of non-CDBG funds for the acquisition of, or improvement to, the property.

20. PUBLICITY. Any publicity generated by CITY for the Projects ?inded pursuant to this Supplemental Agreement will make reference to the contribution of the COUNTY, the Department of Housing, and Workforce Solutions, and the Community Development Block Grant Program in making the project possible.
2]. PROGRAM MONITORING AND EVALUATION. CITY and its subcontractors shall be monitored and evaluated in terms of its effectiveness and timely compliance with the provisions of this Supplemental Agreement and the effective and ef?cient achievement of the CDBG National Objectives as set forth in Exhibit(s)A, and B, attached hereto. Quarterly reports shall be due on the last day of the month immediately following the end of the quarter being reported. The quarterly written reports shall include, but shall not be limited to, the following data elements:

A. Title of program, listing of components, descriptionof activities/operations.

B. The projected goals, indicated numerically, and also the goals achieved (for each report period). In addition, identify by percentage and description, the progress achieved towards meeting the speci?ed goals and identify any problems encounteredin meeting goals.

C. If the CDBG-funded activity meets a National Objective under 24 CFR 570.208 (a)(2)(i), CITY will report the following:
1) Total number of direct bene?ciaries (clientele served) with household incomes at:

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0 Between 30% and 50% MHI (Very Low—Income)
0 Less than 30% MHI (Extremely Low-Income)
2) Total number and percent (%) of the clientele served that have household incomes at or below 80% MHI
3) Racial ethnicity of clientele
4) Number of Female-Headed Households
D. CITY shall report, in writing, and cause its subcontractors to report, in writing, bene?ciary statistics monthly to Housing and Workforce Solutions (HWS) on the pre-approvedDirect Bene?tFarm and Sel?Certi?cationForm (certifying income, family size, and racial ethnicity) as requiredby HUD. Updated forms are to be provided to CITY by HWS should HUD implement changes during the term of this Supplemental Agreement. CITY and subcontractors will collect and provide all necessary data required by HUD pertaining to the Speci?c Outcome Indicators as identi?ed in HUD’S Community Planning and Development (CPD) Outcome Performance Measurement System.

22. PRIOR AUTHORIZATION. CITY shall obtain COUNTY'S written approval from HWS prior to implementing the following “high risk” activities funded with CDBG assistance:

A. Construction of public facilities (project plans and speci?cations); B. Acquisition of real property;
C. Historic Preservation;
D. Relocation; and
F. Economic Development

23. PRIOR COUNTY APPROVAL CONSTRUCTION ACTIVITIES . CITY shall obtain COUNTY'S written approval, through its HWS, of the project plans, speci?cations, and construction documents prior to CITY’S construction of same for all projects consisting of CDBG-funded construction activities . The COUNTY neither undertakes nor assumes nor will have any responsibility or duty to CITY or to any third party to review, inspect, supervise,pass judgment upon or inform CITY or any third party of any matter in connection with the development or construction of the improvements, whether regarding the quality, adequacy or suitability of the plans, any labor, service, equipment or material furnished to the property, any person furnishing the same, or otherwise. CITY

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and all third parties shall rely upon its or their own judgment regarding such matters, and any review, inspection,supervision,exercise ofjudgment or information supplied to CITY or to any third party by the COUNTY in connection with such matter is for the public purpose of assisting with a community development and housing activity pursuant to the Act, and neither CITY (except for the purposes set forth in this Agreement) nor any third party is entitled to rely thereon. The COUNTY shall not be responsiblefor any of the work of construction, improvement, or development of the property.

It is the responsibility of CITY, without cost to COUNTY, to ensure that all applicable local jurisdiction land use requirements will permit development of the property and construction of the improvements and the use, operation, and maintenance of such Improvements in accordancewith the provisions of this Agreement. Nothing contained herein shall be deemed to entitle Sponsor to any local jurisdiction or County permit or other local jurisdiction or County approval necessary for the development of the Property, or waive any applicable local jurisdiction or County requirements relating thereto. This Agreement does not (a) grant any land use entitlement to CITY, (b) supersede , nullify, or amend any condition which may be imposed by the local jurisdiction in connection with approval of the development described herein, (c) guarantee to CITY or any other party any pro?ts from the development of the Property, or (d) amend any local jurisdiction or County laws, codes or rules.

24. PRIOR COUNTY APPROVAL A UISITION ACTIVITIES . CITY shall obtain COUNTY'S written approval and authorization to proceed, through HWS, of all CDBG-funded real property acquisition activities.

25. REAL PROPERTY AC UIRED OR PUBLIC FACILITY CONSTRUCTED WITH CDBG FUNDS. When CDBG fundsare used, in whole or in part, by CITY to acquire real property or to construct a public facility, CITY will comply with the Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Section 200.311); National Environmental Policy Act of 1969 (42 U.S.C.A. §4321, et seq.) ; the California Environmental Quality Act (Cal. Pub. Resources Code §21000, et seq); the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (42 U.S.C.A. '§4630, et seq); and the COUNTY’SFive

,Year ConsolidatedPlan. In addition, the following is to occur:
a. Title to the real property shall vest in CITY;
b. The real property will be held by CITY, or the constructed facility will be maintained by the CITY, for a minimum period of ?ve (5) years from the date the CDBGfunded activity is closed-out and reported as complete by the COUNTYthrough the ComprehensiveAnnual Performance and EvaluationReport (CAPER);
c. While held by CITY, the real property or the constructed facility is to be used exclusively for the purposes for which acquisition or construction was originally approved by COUNTY;
d. Written approval from COUNTY must be secured if the property or the facility is to be put to an alternate use that is consistent with the COUNTY’S Five Year ConsolidatedPlan or the applicable federal regulations governing CDBG funds;
e. Should CITY desire to use the real property or the constructedfacility, prior to the completion of the mandatory ?ve-year period, for a purpose not consistent with applicablefederal regulations governing CDBG funds or to sell the real property or facility, then:
(1) If CITY desires to retain title, CITY will reimburse COUNTY the amount that represents the percentage of current fair market value that isidentical to the percentage that CDBG funds initially comprised of monies paid to acquire the property or construct the facility; or (2) If CITY sells the property or facility or is required to sell the property or facility, CITY shall reimburse COUNTY the amount that represents the percentage of proceeds realized by the sale that is identical to the percentage that CDBG funds initially comprised of monies paid to acquire the property or construct the facility. This percentage amount will be calculated after deducting all actual and reasonable cost of sale from the sale proceeds.

26. ENTIRE AGREEMENT. This Supplemental Agreement, including any attachments or exhibits hereto constitutes the entire Supplemental Agreement of the parties with respect to its subject matter and supersedes all prior and contemporaneous representations, proposals, discussions and communications, whether oral or in writing. No oral understanding or agreement not incorporatedherein shall be binding on any of the parties hereto. Each of the attachments and exhibits attached hereto is

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28 incorporated herein by this reference.

27. SEVERABILITY. Each section, paragraph and provision of this Supplementa l
Agreement is severable from each other provision, and if any provisionor part thereof is declared invalid, the remaining provisionsshallremain in ?ill force and effect.

28. EMPLOYMENT OPPORTUNITIES TO BE CAUSED BY PROJECT. CITY agrees to notify in writing, and to cause any subcontractor implementing CDBG-funded Projects to notify, in writing, the Riverside County Workforce Development Center of any and alljob openingsthat are caused by the CDBG-fundedProjects under this SupplementalAgreement.

29. MINISTERIAL ACTS. The Directorof Housing and WorkforceSolutions or designee(s) are authorized to take suchministerial actions as may be necessary or appropriate to implement the terms, provisions, and conditions of this Supplemental Agreement as it may be amended from time-to-time by COUNTY.

30. PROJECT ELIGIBILITY. As to CITY or its claimants, COUNTY shall bear no liability for any later determination by the United States Government, the US. Department of Housing and Urban Development, or any other person or entity that CITY is or is not eligible under 24 CFR Part 570 to receive CDBG entitlement funds from the COUNTY.

31. SOURCE OF FUNDING. CITY acknowledges that the source of funding pursuant to this Supplemental Agreement is Community Development Block Grant funds (CFDA 14.218), and the Grant Award Number is B-23-UC-06-0506.

32. ASSIGNMENT. The CITY shall not make any assignment or transfer in any form with respect to this Supplemental Agreement, without prior written approval of the COUNTY.

33. INTERPRETATION AND GOVERNING LAW. This Supplemental Agreement and any dispute arising hereunder shall be governed by and interpreted in accordance with the laws of the State of California. This Supplemental Agreement shall be construed as a whole according to its fair language and common meaning to achieve the objectives and purposes of the parties hereto, and the rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be employed in interpreting this Supplemental Agreement, all parties having been represented by counsel in the negotiation and preparationhereof.

34. WAIVER. Failure by a party to insist upon the strict performance of any of the

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provisions of this SupplementalAgreement by the other party, or the failure by a party to exercise its rights upon the default of the other party, shall not constitute a waiver of such party’s rights to insist and demand strict compliance by the other party with the terms of this SupplementalAgreement thereafter.

35. JURISDICTION AND VENUE: Any action at law or in equity arising under this Supplemental Agreement or brought by a party hereto for the purpose of enforcing, construing or determining the validity of any provision of this Supplemental Agreement shall be ?led only in the Superior Court of the State of California, located in Riverside, California, and the parties hereto waive all provisions of law providing forthe ?ling, removal or change of venue to any other court or jurisdiction

36. USE OF PROPERTY. Whenever federal CDBG funds or program income are used, in whole or in part, for the purchase of equipment or personal property, the property shall not be transferred from its originally funded use, by CITY or the CITY’S subcontractor implementingthe CDBG-funded activity, for a period of ?ve (5) years from the close-out date of the grant from which CDBG assistance was provided. The CITY shall maintain a current inventory for COUNTYmonitoring and review.

37. AUTHORITY TO EXECUTE. The persons executing this Supplemental Agreement or exhibits attached hereto on behalf of the parties to this Supplemental Agreement hereby warrant‘and represent that they have the authority to execute this Supplemental Agreement and warrant and represent that they have the authority to bind the respective parties to this Supplemental Agreement to the performance of its obligations hereunder.

38. EFFECTIVE DATE. The effective date of this SupplementalAgreement is the date the parties sign the SupplementalAgreement. If the parties sign the SupplementalAgreement on more than one date, then the last date the SupplementalAgreement is signed by a party shall be the effective date.

39. COUNTERPARTS. This Supplemental Agreement may be signed by the different parties hereto in counterparts, each of which shall be an original but all of which together shall constitute one and the same agreement.

40. FORCE MAJEURE.

A. Performance by either party hereunder shall not be deemed to be in default Where delays or defaults are due to war, insurrection, strikes, lock-outs, riots, ?oods, earthquakes, ?res, casualties, acts of God, acts of the public enemy, epidemics, pandemic, quarantine restrictions, freight embargoes, lack of transportation, governmental restrictions or priority, litigation, unusually severe

\DOOQOUILUJNH
weather, inability to secure necessary labor, material or tools, delays of any contractor, sub-contractor or supplier, acts of the other party, acts or failure to act of a public or governmental agency or entity, or any causes beyond the control or without the fault of the party claiming an extensionof time to perform.

B. An extension of time for any such cause (a “Force Majeure Delay”) shall be for the period of the enforced delay and shall commence to run from the time of the commencement of the cause, if notice by the party claiming such extension is sent to the other party within thirty (30) calendar days of knowledge of the commencement of the cause. Notwithstanding the foregoing, none of the foregoing events shall constitute a Force Majeure Delay unless and until the party claiming such delay and interference delivers to the other party written notice describing the event, its cause, when and how such party obtained knowledge, the date the event commenced, and the estimated delay resulting therefrom. Any party claiming a Force Majeure Delay shall deliver such written notice within thirty (30) calendar days after it obtains knowledge of the event.

41. MODIFICATION OF AGREEMENT. This Supplemental Agreement may be modi?ed or amended only by a writing signed by the duly authorized and empowered representativeof COUNTY and CITY respectively.

42. DIGITAL AND ELECTRONIC SIGNATURES. The parties agrees to the use of electronic signatures, such as digital signatures that meet the requirements of the California Uniform Electronic Transactions Act ((“CUETA”) Cal. Civ. Code §§ 1633.1 to 1633.17). The partiesfurther agree that the electronic signatures of the parties included in this Agreement are intended to authenticatethis writing and to have the same force and effect as manual signatures. Electronic signature means an electron ic
sound, symbol, or process attached to or logically associated with an electronic record and executed or adoptedby a person with the intent to sign the electronic record pursuant to CUETA as amended from time to time. Digital signature means an electronic identi?er, created by computer, intended by the party using it to have the same force and effect as the use of a manual signature, and shall be reasonably relied upon by the parties. For purposes of this section, a digital signature is a type of "electronicsignature" as de?ned in subdivision(i) of Section 1633.2 of the Civil Code.

Name:

Title:
2 dates set forth below.
1 IN WITNESS WHEREOF, the COUNTY and the CITY have executed this Agreement as of the erk
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20 COUNTY OF RIVERSIDE,
a politicalsubdivisionof the
State of California
BY:

MichaelWalsh,
Assistant Director HWS
APPROVED AS TO FORM:

MINH C. TRAN
By'
Paula Salcido,
Deputy County Counsel

CITY OF NORCO,
a Charter City
ATTEST:
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OUNTY CO SEL
BY:

APPROVED AS TO FORM:

BY:

City Attorney
Date: Date:

BY

available
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EXHIBIT "R"
24 C.F.R. § 5.109
Equal participation of faith—based organizations in
HUD programs and activities.

Effective: May 4, 2016
(a) Purpose.

Consistent with (issued on December 12, 2002, ), entitled “Equal Protection of the Laws for Faith—Basedand Community Organizations,” as amended by (issued on November 17, 2010, ), entitled “Fundamental Principles and Policymaking Criteria for Partnerships With Faith—Based and Other Neighborhood Organizations,”, and further amended by Executive Order 13831 (issued on May 3, 2018, 83 FR 20715) entitled “Establishment of a White House Faith and Opportunity Initiative,” this section describes requirements for ensuring the equal participation of faith-based organizations in HUD programs and activities. These requirements apply to all HUD programs and activities, including all of HUD’s Native American Programs, except as may be otherwise noted in the respective program regulations in title 24 of the Code of Federal Regulations (CFR), or unless inconsistent with certain HUD program authorizing statutes. b) De?nitions. The following de?nitions apply to this section:

Direct Federal ?nancial assistance means Federal ?nancial assistance provided when a Federal Government agency or an intermediary, as de?ned in this section, selects the provider and either purchases services from that provider (i.e., via a contract) or awards funds to that provider to carry out an activity (e.g., Via grant, sub-grant, sub-award, or cooperative agreement). The recipients of sub—grantsor sub-awards that receive Federal ?nancial assistance through State-administeredprograms (e.g., ?ow-through programs) are considered recipients of direct Federal ?nancial assistance. In general, Federal ?nancial assistance shall be treated as direct, unless it meets the de?nition of indirect Federal ?nancial assistance.

Federal ?nancial assistance means assistance that non-Federal entitiesreceive or administer in the forms of grants, contracts, loans, loan guarantees, property, cooperative agreements, food commodities, direct appropriations, or other assistance, but does not include a tax credit, deduction, or exemption.

Indirect Federal ?nancial assistance means Federal ?nancial assistance providedwhen the choice of the provider is placed in the hands of the bene?ciary, and the cost of that service is paid through a voucher, certi?cate, or other similar means of Govemment-funded payment. Federal ?nancial assistance provided to an organization is considered indirect when the Government program through which the bene?ciary receives the voucher, certi?cate, or other similar means of Govemment-funded payment is neutral toward religion meaning that it is to providers without regard to the religious or non-religious nature of the institution and there are no program incentives that deliberately skew for or against religious or secular providers; and the organization receives the assistance as a result of a genuine, independent choice of the bene?ciary.

Intermediary means an entity, including a nongovernmental organization, acting under a contract, grant, or other agreement with the Federal Government or with a State, tribal or local government that accepts Federal ?nancial assistance and distributes that assistance to other entities that, in turn, carry out activities under HUD programs. (c) Equal participation of faith-based organizations in HUD programs and activities.

Executive Order 13279 67 FR 77141
Executive Order 13559
75 FR 71319

2000bbp-A OKOOOQONUl-PUJN
Faith-based organizations are eligible, on the same basis as any other organization, to participate in any HUD program or activity, considering any permissible accommodations, particulary under the Religious Freedome Restoration Act. Neither the Federal Government, nor a State, tribal or local government, nor any other entity that administers any HUD program or activity, shall discriminate against an organization on the basis of the organization’s religious character, af?liation, or lack thereof, or on the basis of the organization’s religious exercise. For purposes of this part, to discriminate against an organization on the basis of the organization’s religious exercise means to disfavor an organization,including by failing to select an organization, disqualifying an organization, or imposing any condition or selection criterion that otherwise disfavors or penalizes an organization in the selectionprocess or has such an effect:
(1) Because of conduct that would not be consideredgroundsto disfavor a secular organization; (2) Because of conduct that must or could be granted an appropriateaccommodation in a manner consistent with RFRA ( U.S.C. through ) or the Religion Clauses of the to the Constitution; or
(3) Because of the actual or suspected religious motivation of the organization's religious exercise. (4) In addition, decisions about awards of must be free from political interference or even the appearance ofsuch interference and must be made on the basis of merit, not based on the organization's religious character, af?liation, or lack thereof, or based on the organization's religious exercise. Notices of funding availability, grant agreements, and cooperativeagreements shall include language substantially similar to that in appendixA to this subpart, where faith-based organizations are eligible for such opportunities. ((1)Independence and identity of faith—basedorganizations. (1) A faith-based organization that applies for, or participates in, a HUD program or activity supported with Federal ?nancial assistance retains its autonomy, right of expression, religious character, authority over its governance, and independence, and may continue to carry out its mission, including the de?nition, development, practice, and expression of its religious beliefs. A faith—basedorganization that receives Federal ?nancial assistance from HUD does not lose the protectionsof law. (2) A faith-based organization that receives direct Federal ?nancial assistance may use space (including a sanctuary, chapel, prayer hall, or other space) in its facilities (including a temple, synagogue, church, mosque, or other place of worship) to carry out activities under a HUD program without concealing, altering, or removing religious art, icons, scriptures, or other religious symbols. In addition, a faith-based organization participating in a HUD program or activity retains its authority over its internal governance, and may retain religious terms in its organization’s name, select its board members and employees on the basis of their acceptance of or adherence to the religious tenets of the organization consistent with paragraph (i) of this section), and include religious references in its organization’s mission statements and other governing documents. (e) Explicitlyreligious activities.

If an organizationengages in explicitly religious activities (including activities that involve overt religious content such as worship, religious instruction, or proselytization), the explicitly religious activities must be offered separately, in time or location, from the programs or activities supported by direct Federal ?nancial assistance and participationmust be voluntary for the bene?ciaries of the programs or activities that receive direct Federal ?nancial assistance. The use of indirect Federal ?nancial assistance is not subject to this restriction. Nothing in this part restricts HUD’s authority under applicable Federal law to fund activities, that can be directly funded by the Government consistent with the Establishment Clause of the US. Constitution. (1)Intermediary responsibilitiesto ensure equal participationof faith-based organizations in HUD programs.

If an intermediary - actingunder a contract, grant, or other agreement with the Federal Government or with a State, tribal or local government that is administering a program supported by Federal ?nancial assistance is First Amendment
Federal ?nancial assistance

Federal ?nancial assistance HUD
intermedia 1‘I?ederal ?nancial assistance HUD
42 U.S.C. 20006—

OCOOQQUIAUJNH
given the authority to select a nongovernmental organization to receive Federal ?nancial assistance under a contract, grant, sub-grant, sub—award, or cooperative agreement, the intermediary must ensure that such organization complies with the requirements of this section. If the intermediary is a nongovernmental organization, it retains all other rights of a nongovernmental organization under the program’s statutory and regulatory provisions.
(g) Nondiscrimination requirements.

Any organization that receives under a program or activity shall not, in providing services with such assistance or carrying out activities with such assistance, discriminate against a bene?ciary or prospective bene?ciary on the basis of religion, religious belief, a refusal to hold a religious belief, or a refusal to attend or participatein a religious practice. However, an organizationthat participates in a program funded by indirect Federal ?nancial assistance need not modify its program or activities to accommodate a beneficiary who chooses to expend the indirect aid on the organization's program and may require attendance at all activities that are fundamental to the program. (h) No additional assurances from faith-basedorganizations.

A faith-based organization is not rendered ineligible by its religious nature to access and participate in programs. Absent regulatory or statutory authority, no notice of funding availability, grant agreement, cooperative agreement, covenant, memorandum of understanding, policy, or regulation that 13 used by or a recipient or in administering from shall require otherwise eligible faith-based organizationsto provide assurances or notices where they are not required of similarly situated secular organizations. All organizations that participate in programs or activities, including organizations with religious character or af?liations, must carry out eligible activities in accordance with all program requirements, subject to any required or appropriate accommodation, particularly under the Religious Freedom Restoration , and other applicable requirements governing the conduct of -funded activities, including those prohibiting the use of direct ?nancial assistance to engage in explicitly religious activities. No notice of funding availabili grant agreement, ty, cooperative agreement, covenant, memorandum of understanding, policy, or regulation that is used by or a recipient or in administering ?nancial assistance from shall disqualify otherwise eligiblefaith- based organizations from participating in ‘s programs or activities because such organization is motivated or in?uenced by religious faith to provide such programs and activities, or because of its religious character or af?liation, or on grounds that discriminate against an organization on the basis of the organization'5 religious exercise, as de?ned 1n this part. (i) Exemption from Title VII employment discrimination requirements.

A religious organization’s exemption from the Federal prohibition on employment discrimination on the basis of religion, set forth in section 702(a) of the Civil Rights Act of 1964 ( ), is not forfeited when the organizationparticipates in a HUD program. Some HUD programs, however, contain independent statutory provisions that impose certain nondiscrimination requirements on all grantees. Accordingly, grantees should consult with the appropriate HUD program of?ce to determine the scope of applicable requirements. (j) Acquisition, construction, and rehabilitation of structures.

Direct Federal financial assistance may be used for the acquisition, construction, or rehabilitation of structures only to the extent that those structures are used for conducting eligible activities under a HUD program or activity.

Where a structure is used for both eligible and explicitlyreligious activities (including activities that involve overt religious content such as worship, religious instruction, or proselytization), direct Federal ?nancial assistance ma not exceed the cost of the share of acquisition, construction, or rehabilitation y attributable to eligible activities in
accordance with the cost accounting requirements applicable to the HUD program or activity. However, HUD intermedia HUD
?
HUD

HUD
HUD
state
HUD
applicant
Internal Revenue Code
\DWNONKJ‘I-PUJNh
acquisition,construction, or rehabilitation of sanctuaries, chapels, or other rooms that a HUD—fundedfaith-based organization uses as its principal place of worship, may not be paid with direct Federal ?nancial assistance Disposition of real property by a faith-based organization after its use for an authorized purpose, or any change 1n use of the property from an authorizedpurpose, is subject to Govemment—widergulatiOnsgoverning real property disposition (2 CFR part 200, subpart D) and the HUD program regulations, as directed by HUD. (k) Commingling of Federal and State, tribal, and local funds.

If a State, tribal, or local government voluntarily contributes its own funds to supplement direct Federal ?nancial assistance for an activity, the State, tribal or local government has the option to segregate those funds or commingle them with the direct Federal ?nancial assistance. However, if the funds are commingled, the requirements of this section apply to all of the commingled funds. Further, if a State, tribal, or local government is required to contribute matching funds to supplement direct Federal ?nancial assistance for an activity, the matching funds are considered commingled with the direct Federal ?nancial assistance and, therefore, subject to the requirements of this section. Some HUD programs’ requirements govern any activity assisted under those programs. Accordingly, recipients should consult withthe appropriate HUD program of?ce to determinethe scope of applicable requirements.
(1)Tax exempt organizations.

In general, does not require that a recipient, including a faith-based organization, obtain tax-exempt status under section 501(c)(3) of the to be eligible for funding under programs. Many grant programs, however, do require an organization to be a nonpro?t organization in order to be eligible for funding.

Notices of funding availability that require organizations to have nonpro?t status will speci?cally so indicate1n the eligibility section of the notice of funding availability. In addition, if any notice of funding availability requires an organization to maintain tax-exempt status, it will expressly the statutory authority for requiring such status. should consult with the appropriate program of?ce to determine the scope of any applicablerequirements. In programs in which an must show that it is a nonpro?t organization but this is not statutorily de?ned, the may do so by any of the following means:
(1) Proof that the Internal Revenue Service currently recognizes the as an organization to which contributionsare tax deductible under section 501(c)(3) of the , (2) A statement from a or other governmentaltaxing body or the of certifying that (i) The organization is a nonpro?t organizationoperating within the ; and (ii) No part of its net earnings may bene?t any private shareholder or individual; (3) A certi?ed copy of the 's certi?cate of incorporation or similar document that clearly establishes the nonpro?t status of the ;
(4) Any item described 1n paragraphs (l)(1) through (3) of this section, if that item applies to a State of national parents organization, together with a statement by the State of parent organization that the applicant IS a local nonpro?t af?liate, or
(5) For an entity that holds a sincerely held religiousbelief that it cannot apply for a determination as an entity that 1s tax--exempt under section 501(c)(3) of theInternal Revenue Code, evidence suf?cient to establish that the entity would otherwise qualify as a nonpro?t organization under paragraphs (1)(1)through (4) of this section. (m) Rule of construction.

Neither nor any recipient or other receiving funds under any program or activity shall construe these provisions in such a way as to advantage or disadvantage faith—basedorganizations with historic or well-establishedreligions or sects in comparison with other religions 0r sects.

Credits
af?liated
III'I) intermedia HUD
applicant
Internal Revenue Code
State secreta State
State
applicant
applicant
State
applicant
Applicants

( l
69FR41717 80FR 75934 81 FR19416
61 FR 5202 61 FR 9041 61 FR 9537 61 FR 11113
61 FR 13616 61 FR 54498 70 FR 77743 73 FR
72340 75 FR 66258 77 FR 5674 80 FR 42352 _8
_1 FR 19416 81 FR 80798 81 FR 90657
Pub.L. 109 —
12U.S.C.1701x 42 U.S.C. 1437a 1437c 1437d 1437f 1437n 3535(d) 115 119 Stat. 2936 Pub.L. 109—162 119 Stat. 3051 42 U.S.C. 14043e et se 77141 3 ED. 13559 75 FR71319 3
42 U.S.C. 1437a 1437c 1437c—1d 1437d 1437f 1437n 3535(d) Pub.L.109—115 119 Stat. 2936 42 U.S.C. 5304 b 42 U.S.C. 12101 et se . 42 U.S.C. 12704 12708 BC. 11063 27 FR 11527 3 E0. 12892 59 FR 2939 3
E0. 13279 67 FR
29 U.S.C. 794
HOQOOQONUl-prNv—IO \OOO?QUI-RWNH
[ July 9, 2004; , Dec. 7, 2015; April 4, 2016; 85 FR 82315, Dec 17,2020] SOURCE: , Feb. 9, 1996; , March 6, 1996; March 8, 1996; March 18, 1996; , March 27, 1996; Oct. 18, 1996; , Dec. 30, 2005; , Nov. 28, 2008; , Oct. 27, 2010; Feb. 3, 2012; , July 16, 2015; April 4, 2016; , Nov. 16, 2016; Dec. 14, 2016, unless otherwisenoted.

AUTHORITY: , , , , ; Sec. 327,
; Sec. 607, ( );
CFR, 2002 Comp., p. 258; and CFR, 2010 Comp., p. 273.;
3 5 3 , and Sec. 327,
; 42 U.S.C. 3600—3620; , CFR, 1958—1963Comp., p. 652; CFR, 1994 Comp., p. 849. 22 23
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28

EXHIBIT “S"
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Economic Opportunities for Low- and Very Low-Income Persons

CONTRACT REQUIREMENTS
24 CFR Part 75

RIVERSIDE COUNTY
Section 75.1 Pur ose
This part establishes the requirementsto be followed to ensure the objectives of Section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701u) (Section 3) are met. The purpose of Section 3 is to ensure that economic opportunities, most importantly employment, generated by certain HUD ?nancial assistance shall be directed to low—and very low-income persons, particularly those who are recipients of government assistance for housing or residents of the community in which the Federal assistance is spent.

Section 75.3 A licabili
(a) General applicability. Section 3 applies to public housing ?nancial assistance and Section 3 projects, as follows:
(1) Public housing ?nancial assistance. Public housing ?nancial assistance means:
(i) Development assistance provided pursuant to section 5 of the United States Housing Act of 1937 (the 1937 Act);
(ii) Operations and management assistance provided pursuant to section 9(e) of the 1937 Act; (iii) Development, modernization, and management assistance provided pursuant to section 9(d) of the 1937 Act; and
(iv) The entirety of a mixed-?nance development project as described in 24 CFR 905.604, regardless of whether the project is fully or partially assisted with public housing ?nancial assistance as de?ned in paragraphs (a)(1)(i) through (iii) of this section. (2) Section 3 projects. (i) Section 3 projects means housing rehabilitation, housing construction, and other public construction projects assisted under HUD programs that provide housing and community development ?nancial assistance when the total amount of assistance to the project exceeds a threshold of $200,000. The threshold is $100,000 where the assistance is from the Lead Hazard Control and Healthy Homes programs, as authorized by Sections 501 or 502 of the Housing and Urban Development Act of 1970 (12 U.S.C. 17012-1 or 1701z-2), the Lead-Based Paint Poisoning Prevention Act (42 U.S.C 4801 et seq.); and the Residential Lead-Based Paint Hazard Reduction Act of 1992 (42 U.S.C. 4851 et seq.). The project is the site or sites together with any building(s) and improvements located on the site(s) that are under common ownership, management, and ?nancing.

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28 (ii) The Secretary must update the thresholdsprovided in paragraph (a)(2)(i) of this section not lessthan once every 5 years based on a national construction cost in?ation factor through Federal Register notice not subject to public comment. When the Secretary ?nds it is warrantedto ensure compliancewith Section 3, the Secretary may adjust, regardless of the nationalconstructioncost factor, such thresholds through Federal Register notice, subject to public comment. (iii) The requirements in this part apply to an entire Section 3 project, regardless of whether the project is ?llly or partially assisted under HUD programs that provide housing and community development ?nancial assistance.
(b) Contracts for materials. Section 3 requirements do not apply to material supply contracts. (0) Indian and Tribal preferences. Contracts, subcontracts, grants, or subgrants subject to Section 7(b) of the Indian Self-Determinationand Education Assistance Act (25 U.S.C. 5307(b)) or subject to tribal preference requirements as authorized under 101(k) of the Native American Housing Assistance and Self-DeterminationAct (25 U.S.C. 4111(k)) must provide preferences in employment, training, and business opportunitiesto Indians and Indian organizations, and are therefore not subject to the requirements of this part. ((1)Other HUD assistance and other Federal assistance. Recipients that are not subject to Section 3 are encouraged to consider ways to support the purpose of Section 3.

Section 75. 5 De?nitions.

The terms HUD, Public housing, and Public Housing Agency (PHA) are de?ned in 24 CFR part

5. The following de?nitions also apply to this part:
1937Act means the United States Housing Act of 1937, 42 U.S.C. 1437 et seq.

Contractor means any entity entering into a contract with:
(1) A recipient to perform work in connection with the expenditureof public housing ?nancial assistance or for work in connection with a Section 3 project; or (2) A subrecipient for work in connection with a Section 3 project.

Labor hours means the number of paid hours worked by persons on a Section 3 project or by persons employed with funds that include public housing ?nancial assistance.

Low-income person means a person as de?ned in Section 3(b)(2) of the 1937 Act.

Material supply contracts means contracts for the purchase of products and materials, including, but not limited to, lumber, drywall, Wiring, concrete, pipes, toilets, sinks, carpets, and of?ce supplies.

Professionalservices means non—constructionservices that require an advanced degree or professional licensing, including, but not limited to, contracts for legal services, ?nancial

consulting, accounting services, environmental assessment, architectural services, and civil engineering services.

Public housing ?nancialassistance means assistance as de?ned in §75.3(a)(l).

Public housing project is de?ned in 24 CFR 905.108.

Recipient means any entity that receives directly from HUD public housing ?nancial assistance or housing and community development assistance that funds Section 3 projects, including, but not limited to, any State, local government, instrumentality, PHA, or other public agency, public or private nonpro?t organization.

Section 3 means Section 3 of the Housing and Urban Development Act of 1968, as amended(12 U.S.C. 1701u).

Section 3 business concern means:
(1) A business concern meeting at least one of the following criteria, documented within the last six-monthperiod:
(i) It is at least 51 percent owned and controlled by low- or very low-income persons; (ii) Over 75 percent of the labor hours performed for the business over the prior three month period are performed by Section 3 workers; or —
(iii) It is a business at least 51 percent owned and controlled by current public housing residents or residents who currently live in Section 8-assisted housing. (2) The status of a Section 3 business concern shall not be negatively affected by a prior arrest or conviction of its owner(s) or employees.
(3) Nothing in this part shall be construed to require the contracting or subcontracting of a Section 3 business concern. Section 3 business concerns are not exempt from meeting the speci?cations of the contract.

Section 3 project means a project de?ned in §75.3(a)(2).

Section 3 worker means:
(1) Any worker who currently ?ts or when hired within the past ?ve years ?t at least one of the following categories, as documented:
(i) The worker's income for the previous or annualized calendar year is below the income limit establishedby HUD.
(ii) The worker is employed by a Section 3 business concern.

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(2) The status of a Section3 worker shall not be negatively affected by a prior arrest or conviction. (3) Nothing in this part shall be construed to require the employment of someone who meets this de?nition of a Section 3 worker. Section 3 workers are not exempt from meeting the quali?cations of the position to be ?lled.

Section 8-assisted housing refers to housing receiving project-basedrental assistance or tenantbased assistance under Section 8 of the 1937 Act.

Service area or the neighborhood ofthe project means an area within one mile of the Section 3 project or, if fewer than 5,000 people live within one mile of a Section 3 project, within a circle centered on the Section 3 project that is suf?cient to encompass a population of 5,000 people according to the most recent US. Census.

Small PHA means a public housing authority that manages or operates fewer than 250 public housing units.

Subcontractor means any entity that has a contract with a contractor to undertake a portion of the contractor's obligation to perform work in connection with the expenditure of publichousing ?nancial assistance or for a Section 3 project.

Subrecipient hasthe meaning provided in the applicableprogram regulations or in 2 CFR 200.93.

Targeted Section 3 worker has the meanings provided in §§75.1 1, 75.21, or 75.29, and does not exclude an individual that has a prior arrest or conviction.

Very low-income person means the de?nition for this term set forth in section 3(b)(2) ofthe 1937 Act.

YouthBuild programs refers to YouthBuild programs receiving assistance under the Workforce Innovation and OpportunityAct (29 U.S.C. 3226).

Subpart C—Additional Provisions for Housing and Community Development Financial Assistance
§75.19 Requirements.
(a) Employment and training. (1) Tothe greatest extent feasible, and consistent with existing Federal, state, and local laws and regulations, recipients covered by this subpart shall ensure that employment and training opportunities arising in connection with Section 3 projects are provided to Section 3 workers within the metropolitan area (or nonmetropolitancounty) in which the project is located.
(2) Where feasible, priority for opportunities and training described in paragraph (a)(1) of this section should be given to:

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(i) Section 3 workers residing within the service area or the neighborhoodof the project, and (ii) Participants in YouthBuild programs.
(b) Contracting. (1) To‘the greatest extent feasible, and consistent with existing Federal, state, and local laws and regulations, recipients covered by this subpart shall ensure contracts for work awarded in connection with Section 3 projects are provided to business concerns that provide economic opportunitiesto Section 3 workers residing within the metropolitan area (or nonmetropolitan county) in which the project is located.
(2) Where feasible, priority for contracting opportunitiesdescribed in paragraph (b)(1) of this section should be given to:
(i) Section 3 business concerns that provide economic opportunitiesto Section 3 workers residing within the service area or the neighborhood of the project, and (ii) YouthBuild programs.
§75.21 Targeted Section 3 worker for housing and community development ?nancial assistance. (a) Targeted Section 3 worker. A Targeted Section 3 worker for housing and community development ?nancial assistance means a Section 3 worker who is:
(1) A worker employed by a Section 3 business concern; or (2) A worker who currently ?ts or when hired ?t at least one of the following categories, as documentedwithin the past ?ve years:
(i) Living within the service area or the neighborhood of the project, as de?ned in §75.5; or (ii) A YouthBuild participant.
(b) [Reserved]
§75.23 Section 3 safe harbor.
(a) General. Recipientswill be considered to have complied with requirementsin this part, in the absence of evidence to the contrary if they:
(1) Certify that they have followed the prioritization of effort in §75.19; and (2) Meet or exceed the applicableSection 3 benchmark as described in paragraph (b) of this section.
(b) Establishing benchmarks. (l) HUD will establish Section 3 benchmarksfor Section 3 workers or Targeted Section 3 workers or both through a document published in the FEDERALREGISTER.HUD may establish a single nationwide benchmark for Section 3 workers and a single nationwide

OOOQONUI-hUJNp—A
benchmark for Targeted Section 3 workers, or may establish multiple benchmarks based on geography, the nature of the Section 3 project, or other variables. HUD will update the benchmarksthrough a document published in the FEDERALREGISTER,subject to public comment, not less frequently than once every 3 years. Such notice shall include aggregate data on labor hours and the proportionof recipients meeting benchmarks, as well as other metrics reported pursuant to §75.25 as deemed appropriate by HUD, for the 3 most recent reporting years. (2) In establishing the Section 3 benchmarks, HUD may consider the industry averages for labor hours worked by speci?c categories of workers or in different localities or regions; averages for labor hours worked by Section 3 workersand Targeted Section 3 workers as reported by recipients pursuant to this section; and any other factors HUD deems important. In establishing the Section 3 benchmarks, HUD will exclude professional services from the total number of labor hours as such hours are excludedfrom the total number of labor hours to be reported per §75.25(a)(4). (3) Section 3 benchmarkswill consist of the following two ratios:
(i) The number of labor hours worked by Section 3 workers divided by the total number of labor hours worked by all workers on a Section 3 project in the recipient's program year. (ii) The number of labor hours worked by Targeted Section 3 workersas defined in §75.21(a), divided by the total number of labor hours worked by all workers on a Section 3 project in the recipient's program year.
§75.25 Reporting.
(a) Reporting oflabor hours. (1) For Section 3 projects, recipients must report in a manner prescribed by HUD:
(i) The total number of labor hours worked;
(ii) The total number of labor hours worked by Section 3 workers; and (iii) The total number of labor hours worked by Targeted Section 3 workers. (2) Section 3 workers' and Targeted Section 3 workers' labor hours may be counted for ?ve years from when their status as a Section 3 worker or Targeted Section 3 worker is established pursuant to §75.31.
(3) The labor hours reported underparagraph (a)(1) of this section must include the total number of labor hours worked on a Section 3 project, including labor hours worked by any subrecipients, contractors and subcontractors that the recipient is required, or elects pursuant to paragraph (a)(4) of this section,to report.
(4) Recipientsreporting under this section, as well as subrecipients, contractors and subcontractors who report to recipients, may report labor hours by Section 3 workers, under paragraph (a)(1)(ii) of this section, and labor hours by Targeted Section 3 workers, under paragraph (a)(1)(iii) of this section, from professional services without including labor hours from professional services in the

\oooqoxmgwmid
total number of labor hours worked under paragraph (a)(l )(i) of this section. If a contract covers both professional services and other work and the recipient or contractor or subcontractor chooses not to report labor hours from professional services, the labor hours under the contract that are not from professionalservices must still be reported.
(5) Recipientsmay report their own labor hours or that of a subrecipient, contractor, or subcontractor based on the employer's good faith assessment of the labor hours of a full-time or parttime employee informed by the employer's existing salary or time and attendance basedpayroll systems, unless the project or activity is otherwise subject to requirements specifying time and attendance reporting.
(b) Additional reporting ifSection 3 benchmarks are not met. If the recipient's reportingunder paragraph (a) of this section indicates that the recipient has not met the Section 3 benchmarks described in §75.23, the recipient must report in a form prescribed by HUD on the qualitativenature of its activities and those its contractors and subcontractors pursued. Such qualitative efforts may, for example, include but are not limited to the following:
(1) Engaged in outreach efforts to generate job applicants who are Targeted Section 3 workers. (2) Provided training or apprenticeshipopportunities.
(3) Provided technical assistance to help Section 3 workers compete for jobs (e.g., resume assistance, coaching).
(4) Provided or connected Section 3 workers with assistance in seeking employment including:
drafting resumes, preparing for interviews, and ?nding job opportunities connecting residents to job placement services.
(5) Held one or more job fairs.
(6) Provided or referred Section 3 workers to services supporting work readiness and retention (e.g., work readiness activities, interview clothing, test fees, transportation, child care). (7) Provided assistance to apply for/or attend community college, a four-year educational institution, or vocational/technicaltraining.
(8) Assisted Section 3 workers to obtain ?nancial literacy training and/or coaching. (9) Engaged in outreach efforts to identify and secure bids from Section 3 business concerns. (10) Provided technical assistance to help Section 3 business concerns understand and bid on contracts.
(11) Divided contracts into smaller jobs to facilitate participation by Section 3 business concerns. (12) Provided bonding assistance, guaranties, or other efforts to support viable bids from Section 3 business concerns.

20 (13) Promoteduse of business registries designed to create opportunitiesfor disadvantaged and small businesses.
(14) Outreach, engagement, or referrals with the state one-stop system as de?ned in Section 121(c)(2) of the Workforce Innovation and Opportunity Act. (c) Reporting frequency. Unless otherwise provided,recipients must report annually to HUD under paragraph (a) of this section, and, where required, under paragraph (b) of this section, on all projects completed within the reporting year in a manner consistent with reporting requirementsfor the applicable HUD program.
§75.27 Contract provisions.
(a) Recipientsmust include language applying Section 3 requirementsin any subrecipient agreement or contract for a Section 3 project.
(b) Recipients of Section 3 funding must require subrecipients, contractors, and subcontractorsto meet the requirementsof §75.l9, regardless of whether Section 3 language is included in recipient or subrecipient agreements, program regulatory agreements, or contracts.

Subpart D—Provisions for Multiple Funding Sources, Recordkeeping, and Compliance
§75.29 Multiple funding sources.
(a) If a housing rehabilitation, housing construction or other public construction project is subject to Section 3 pursuant to §75.3(a)(1) and (2), the recipient must follow subpart B of this part for the public housing ?nancial assistance and may follow either subpart B or C of this part for the housing and community development ?nancial assistance. For such a project, the following applies:
(1) For housing and community development ?nancial assistance, 3 Targeted Section 3 worker is any worker who meets the de?nition of a Targeted Section 3 worker in either subpart B or C of this part; and
(2) The recipients of both sources of funding shall report on the housing rehabilitation, housing construction, or other public constructionproject as a whole and shall identify the multiple associated recipients. PHAs and other recipients must report the following information:
(i) The total number of labor hours worked on the project; (ii) The total number of labor hours worked by Section 3 workers on the project; and (iii) The total number of labor hours worked by Targeted Section 3 workers on the project. (b) If a housing rehabilitation, housing construction, or other public construction project is subject to Section 3 because the project is assisted with funding from multiple sources of housing and community development assistance that exceed the thresholds in §75.3(a)(2), the recipient or recipients

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must follow subpart C of this part, and must report to the applicableHUD program of?ce, as prescribed by HUD.
§75.31 Recordkeeping.
(a) HUD shall have access to all records, reports, and other documents or items of the recipient that are maintained to demonstrate compliance with the requirementsof this part, or that are maintained in accordance with the regulations governing the speci?c HUD program by which the Section 3 project is governed, or the public housing ?nancial assistance is provided or otherwise made available to the recipient, subrecipient, contractor, or subcontractor. (b) Recipients must maintain documentation, or ensure that a subrecipient, contractor, or subcontractor that employsthe worker maintains documentation, to ensure that workers meet the de?nition of a Section 3 worker or Targeted Section 3 worker, at the time of hire or the ?rst reporting period, as follows:
(1) For a worker to qualify as a Section 3 worker, one of the following must be maintained:
(i) A worker's self-certi?cation that their income is below the income limit from the prior calendar year;
(ii) A worker's self-certi?cation of participation in a means-tested program such as public housing or Section 8-assisted’housing;
(iii) Certi?cation from a PHA, or the owner or property manager of project-based Section 8- assisted housing, or the administrator of tenant—basedSection 8-assisted housing that the worker is a participant in one of their programs;
(iv) An employer's certi?cation that the worker's income from that employer is below the income limit when based on an employer's calculation of Whatthe worker's wage rate would translate to if annualized on a ?ill-time basis; or
(v) An employer's certi?cation that the worker is employed by a Section 3 business concern. (2) For a worker to qualify as a Targeted Section 3 worker, one of the following must be maintained:
(i) For a worker to qualify as a Targeted Section 3 worker under subpart B of this part:
(A) A worker's self-certi?cation of participation in public housing or Section 8-assisted housing programs;
(B) Certi?cation from a PHA, or the owner or property manager of project-based Section 8- assisted housing, or the administrator of tenant-based Section S-assisted housing that the worker is a participant in one of their programs;
(C) An employer's certi?cation that the worker is employed by a Section 3 business concern; or

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(D) A worker's certi?cation that the worker is a YouthBuild participant. (ii) For a worker to qualify as a Targeted Section 3 worker under subpart C of this part:
(A) An employer's con?rmation that a worker's residence is within one mile of the work site or, if fewer than 5,000 people live Withinone mile of a work site, within a circle centeredon the work site that is suf?cient to encompass a populationof 5,000 people according to the most recent US. Census; (B) An employer's certi?cation that the worker is employed by a Section 3 business concern; or (C) A worker's self-certi?cation that the worker is a YouthBuild participant. (c) The documentation describedin paragraph (b) of this section must be maintainedfor the time period required for record retentions in accordance with applicable program regulations or, in the absence of applicable program regulations, in accordance with 2 CFR part 200. (d) A PHA or recipient may report on Section 3 workers and Targeted Section 3 workers for ?ve years from when their certi?cation as a Section 3 worker or Targeted Section 3 worker is established. §7 5.33 Compliance.
(a) Records ofcompliance. Each recipientshall maintain adequate records demonstrating compliance with this art, consistent with other recordkee in requirements in 2 CFR art 200. P P g P (b) Complaints. Complaints alleging failure of compliance with this part may be reported to the HUD program of?ce responsible for the public housing ?nancial assistance or the Section 3 project, or to the local HUD ?eld of?ce.
(c) Monitoring. HUD will monitor compliance with the requirements of this part. The applicable HUD program of?ce will determine appropriatemethods by which to oversee Section 3 compliance. HUD may impose appropriate remedies and sanctions in accordance with the laws and regulations for the program under which the Violation was found

I. GENERAL INFORMATION
CITY NAME: Ci of Norco UEI #: MV2VM93DW7M
6 ADDRESS: 2870 Clark Avenue

SUPPLEMENTAL AGREEMENT

SCOPE OF WORK
(NON-PUBLIC SERVICE)

EXHIBIT
File No.: 2.NR.61—
PHONE: 95 1-270-5633
E-MAIL: lsassoonm,ci.norco.ca.us
PROJECT NAME: Communi Center Park ADA S nthetic Poured In Place Surface Pro'ect PROJECT LOCATION: 3900 Acacia Avenue, Norco, CA 92860
LEVEL OF ENVIRONMENTAL CLEARANCE: [24 CFR 58.35 (a)(1)] CDBG ELIGIBILITY CODE: 570.201 (0)
PROJECT FUNDING SUMMARY: $60,782
Project to be administered by County (HWS) on behalf of City: YES NO El II. SCOPE OF SERVICE
A. Activities
City will be responsible for administering a 2023-2024 Community Development Block Grant for the Community Center Park ADA Synthetic Poured In Place Surface Project in a manner satisfactory to the County of Riverside and consistent with any standardsrequired as a condition of providing these funds.

Such program will include the following activities eligible under the Community Development Block Grant program:

Activity #1 The City ofNorco will use CDBG fundsto remove the ground surfaceat Community Center Park and replace it withADA-compliantsynthetic surfacing. CDBGfundswill be used to pay for the design, construction, project management, compliance monitoring, inspection, and other related expenses.

PROGRAM CONTACTS: Lori Sassoon, Ci Mana er
951 270-5681
Norco, CA 92860

(XXX)

EXHIBITA
FileNo.:

B. National Objective
All activities funded with CDBG funds must comply with one of more of the CDBG program’s National Objective Criteria as required under 24 CFR 570.200(a)(2). City certi?es that the activity(ies) carried out under this Agreement will meet the following National Objective:

National Objective Criteria: 570.208 a 2 i A
CFR Reference: Low Mod Limited Clientele Presumed
C. Levels of Accomplishment — Goals and Performance Measures The City agrees to implement and complete the following activity(ies):

Activity #1: Remove the ground surfaceat Community Center Park and replace withADA compliant syntheti c
surfacing
Activity #2: Design, construction, project management, compliance monitoring, inspection, and other related expenses.

CPD OUTCOME PERFORMANCE MEASUREMENT
Objectives (select one): XICreating Suitable Living Environments [I Providing Decent Affordable Housing
El Creating Economic Opportunities
Outcome (select one): IXAvailability/Accessibility
E] Affordability
I: Sustainability (promoting livable or viable communities) D. City Capacity
By executing this SupplementalAgreement, the City certi?es that it has the appropriate number of trained and knowledgeable staff, adequate facilities, proper equipment, required licensing and permitting, and suf?cient amount of ?nancial resources necessary to implement and carry out the activities funded with CDBG funds.

City will immediately notify County of any signi?cant changes in organizationalmanagement, assigned staff, change in facilities, loss or change in matching funds, or any other event that could potentially impact the City or subrecipient’s performance under this Agreement.

Any changes in the above items are subject to the prior approval of the County.

E. Performance Monitoring
The County of Riverside will monitor the performance of the City and its subrecipients against goals and performance standards as stated above. Substandard performance as determined by the County will constitute noncompliance with this Agreement. If action to correct such substandard performance is not taken by the City within a reasonable period of time after being noti?ed by the County, contract suspension or termination procedures will be initiated.

CDBG Granted
Funds

EXHIBITA
File No.: 2.NR.61-23
F. Program Budget
It is expressly agreed and understoodthat the total amount to be paid by the County under this Agreement shall not exceed $60,782 Drawdowns for the payment of eligible expenses shall be made against the line item budgets speci?ed in this Section and in accordance with performance. Payments may be contingent upon certi?cation of the Subrecipient’s ?nancial management system in accordance with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200).

The County may require a more detailed budget breakdown than the one contained herein, and the City shall provide such supplementary budget information in a timely fashion in the form and content prescribed by the County. Any amendmentsto the budget must be approvedin writing by both the County and City Line Item Total of Non- Total Activity/Project Notes
CDBG Funds Budget
$9,500 $70,282
Design/EngineeringCosts
Project AdministrationCosts
Construction Costs
Acquisition Costs
Relocations Costs
Capital Equipment Costs
Code Enforcement
Interim Assistance
Indirect Costs:

TOTAL CDBG BUDGET $60,782 $9,500 $70,282

Clearance

G. Total Amount of Non- CDBG Leveraging

EXHIBIT
FileNo.: 2.NR.61—
III.
1 ADMINISTRATIVE REQUIREMENTS
Accounting Standards
The City agrees to comply with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200) and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred.

Cost Principles
The City shall administer its program in conformance with the Uniform Administrativ Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR e Part 200).

These principlesshall be applied for all costs incurred whether charged on a direct or indirect basis.

Documentationand Record Keeping
Records to be Maintained
The Subrecipient shall maintain all records required by the Federal regulations speci?ed in 24 CFR 570.506 that are pertinent to the activitiesto be funded under this Agreement. Such records shall include but not be limited to:

I
ii.
iii.
iv.
vi.
vii.

Records providing a full description of each activity undertaken; Records demonstrating that each activity undertaken meets one of the National Objectives of the CDBG program;
Records required to determine the eligibility of activities; Records required to document the acquisition, improvement, use or disposition of real property acquired or improved with CDBG assistance;
Records documenting compliance with the fair housing and equal opportunity components of the CDBG program;
Financial records as required by 24 CFR 570.502, and 2 CFR 200; and Other records necessary to document compliance with Subpart K of 24 CFR Part 570.

SOURCE AMOUNT SOURCE AMOUNT SOURCE AMOUNT
Measure R $9,500 ‘7
TOTAL: $9,500
OTHER

PRIVATE
STATE/LOCAL $9,500

TYPE TOTAL

EXHIBITA
FileNo.: 2.NR.61—
23 2. Records Retention
The City shall retain all CDBG-related ?nancial records, supporting documents, contracts, and agreements for a period of four (4) years. The retention period begins on the date of the submission of the County’s annual performance and evaluation report to HUD in which the activities assistedunder the Agreement are reported for the ?nal time. The City will retain all National Objective documentation, including low-moderateincome certi?cation, ethnicity, and other pertinent data for a period of four (4) years after submission of the County’s annual performance and evaluation report to HUD.

Notwithstanding the above, if there is litigation, claims, audits, negotiations or other actionsthat involve any of the records cited and that have started before the expiration of the four—yearperiod, then such records must be retained until completionof the actions and resolution of all issues.

3. Client Data
The City shall maintain client data demonstrating client eligibility for services provided. Such data shall include, but not be limited to, client name, address, income level or other basis for determining eligibility, and description of service provided. Such information shall be made available to County monitors or their designees for review upon request.

4. Disclosure
The City understands that client information collected under this contract is private and the use or disclosure of such information, when not directly connectedwith the administration of the County’s or City’s responsibilitieswith respect to services providedunder this contract, is prohibitedby applicable federal and State law unless written consent is obtained from such person receiving service and, in the case of a minor, that of a responsible parent!guardian.

5. Close—outs
The City’s obligation to the County shall not end until all close-out requirements are completed.

Activities during this close-out period shall include, but are not limited to: making ?nal payments, disposing of program assets (including the return of all unused materials, equipment, unspent cash advances, program income balances, and accounts receivable to the County), and determining the custodianship of records. Notwithstanding the foregoing, the terms of this Agreement shall remain in effect during any period that the City has control over CDBG funds, including program income.

6. Audits & Ins ections
All City records with respect to any matters covered by this Agreement shall be made available to the County, HUD, and the Controller General of the United States or any of their authorized representatives, at any time during normal business hours, as often as deemed necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Any de?ciencies noted in audit reports must be fully cleared by the City within 30 days after receipt by the City. Failure of the City to comply with the above audit requirements will constitute a violation of this contract and may result in the withholding of future payments. The City hereby agrees to have an annual agency audit conducted in accordancewith current County policy concerning subrecipient auditsthe Single Audit Act, and the Of?ce of Management and Budget (OMB) Title 2 US. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Costs Principles, and Audit Requirementsfor Federal Awards (Uniform Guidance).

EXHIBITA
FileNo.: 2.NR.61-23
IV. PROJECT IMPLEMENTATION AND SCHEDULE
Unless pre-approvedby County, City will perform and completethe activities described in Section II in conformance with the schedule of tasks and milestones listed below:

Tasks / Milestone Start Date Corn letion Date
Complete CDBG Training September 2023 September2023
Implement Project Activities
Execute SupplementalAgreement September2023 January 2024 & Notice to Incur Cost
Tasks / Milestone Start Date Corn letion Date
Submit Quarterly Performance Reports to County October 2023 Through June 2025 County Monitoring of City Program/Performance To be determined by Program Manager S ecific Pro'ect Activities

1. City executes Supplemental Agreement; receives Authorization to Incur Cost letter

2. City prepares ?nal construction documents (incorporating Special Federal Provisions) for HWS review and City Submits Reimbursement Requests
Monthly Submittal El
Other Schedule IE To be determined by Program Manager
HWS authorizes City to advertise for bids
HWS reviews and approves bidding process
City awards constructioncontract
City and HWS conduct “pre-constmctionmeeting”
HWS authorizes City to issue “Notice to Proceed”
CDBG—fundedPro'ect Com lete June 15, 2025

approval
Upon Noti?cation from HWS

EXHIBIT
FileNo.: 2.NR.61-23
V. SPECIAL CONDITIONS [PERFORMANCE REQUIREMENTS
The City must follow proper procurement and construction policies and procedures of the City and CDBG regulations. Constructionshall commence using CDBG funding with a Notice to Proceed.

A pre-construction meeting is required. The City must contact the CDBG Program Manager for review before submitting RFP, construction activity, or cost without prior written approval. The County must be contacted 10 (ten) days in advance for attendance of the Pre-Construction meeting.

Original signed Certi?ed payrolls are to be submitted on a weekly basis to the HWS-CDBG program manager once construction starts.

CITY PROGRAM CONTACTS: Lori Sassoon, City Manager
SUBRECIPIENT NAME: City of Norco
ADDRESS: 2870 Clark Avenue, Norco, CA 92860
I. GENERAL INFORMATION
CITY NAME: City of Norco Department of Community Services UEI#: MV2VM93DW7M

SUPPLEMENTAL AGREEMENT

SCOPE OF WORK
(PUBLIC SERVICE)
lsassoon ci.norco.ca.us
PHONE: 951— 951 371-1553
PROJECT NAME: Senior Center Recreation and Communi Services PROJECT LOCATION: 2690 Clark Avenue Norco CA 92860
LEVEL OF ENVIRONMENTAL CLEARANCE: EXEMPT [24 CFR 58.34 (a)(4)] CDBG ELIGIBILITY CODE: 24 CFR 570.201 (e) Public Services PROJECT FUNDING SUMMARY: $12,500
Project to be administered by County (HWS) on behalf of CITY: YES I:I NO II. SCOPE OF SERVICE
A. Activities
City will be responsible for administering a 2023-2024 Community Development Block Grant for the Senior Center Recreation and Community Services in a manner satisfactory to the County of Riverside and consistent with any standards required as a condition of providing these funds. Such program will include the following activities eligible under the Community Development Block Grant program:

Activity #1 The City will provide various health, recreational, educational, and social programs for seniors at the Rose M Eldridge Senior Center in the City ofNorco. CDBGfundswill be used to pay forSta?salaries (direct cost) and other program-related expenses.

ADDRESS: 2870 Clark Avenue
Norco, CA 92860

EXHIBIT B
File No.: 2.NR.62—

B. National Objective
All activities funded with CDBG funds must comply with one of more of the CDBG program’s National Objective Criteria as required under 24 CFR 570.200(a)(2). CITY certi?es that the activity (ies) carried out under this Agreement will meet the following National Objective:

National Objective Criteria: 570.208 (a)(2)(i)(A)
CFR Reference: Low Mod Limited Clientele Presumed
C. Levels of Accomplishment — Goals and Performance Measures The City agrees to provide the following levels of program services:

Activity Units Total Total
er Month Units/Year Undu licated Persons
Activity #1 Provide various health, recreational, educational, and social programs for seniors at the Rose M Eldridge Senior Center in the City ofNorco.

Unit of Service is de?ned as: seniors served

CPD OUTCOME PERFORMANCE MEASUREMENT
Objectives (select one): Creating Suitable Living Environments Providing Decent Affordable Housing
Creating Economic Opportunities
Outcome (select one): Availability/Accessibility
Affordability
Sustainability (promoting livable or viable communities) D. City Capacity
By executing this SupplementalAgreement, the City certi?es that it and its subrecipients have the appropriate number of trained and knowledgeable staff, adequate facilities, proper equipment, required licensing and permitting, and suf?cient amount of ?nancial resources necessary to implement and carry out the activities funded with CDBG funds.

City will immediatelynotify County of any signi?cant changes in organizationalmanagement, assigned staff, change in facilities, loss or change in matching funds, or any other event that could potentially impact City’s performance under this Agreement. Any changes in the above items are subject to the prior approval of the County.

E. Performance Monitoring
The County of Riverside will monitor the performance of the City and its subrecipients against goals and performance standards as stated above. Substandard performance as determined by the County will constitute noncompliance with this Agreement. If action to correct such substandardperformance is not taken by the City within a reasonable periodof time after being noti?ed by the County, contract suspension or termination procedures will be initiated.

150 15

EXHIBITB
File No.: 2.NR.62-23

V173 CDBG Granted
Funds
F. Program Budget

EXHIBIT B
File No.: 2.NR.62-23
It is expressly agreed and understood that the total amount to be paid by the County under this Agreement shall not exceed $12,500. Drawdowns for the payment of eligible expenses shall be made against the line item budgets speci?ed in this Section and in accordance with performance. Payments may be contingent upon certi?cation of the Subrecipient’s ?nancial management system in accordance with the standards speci?ed in Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200).

The County may require a more detailed budget breakdown than the one contained herein, and the City shall provide such supplementary budget information in a timely fashion in the form and content prescribed by the County. Any amendmentsto the budget must be approvedin writing by both the County and City. 9:

Line Item
Total Direct Program
Expenses
Salaries
Fringe
Of?ce Space (Program Only)
Utilities
Communications
Reproduction/Printing
Supplies and Materials
Mileage
Equipment (Program Only)
Audit
Transportation
Other:

Total Indirect Program
Expenses
Indirect Costs (Specify)*
TOTAL CDBG BUDGET $12,500
Total NonCDBG Funds
$134,281
$134,281
Total
Activity/Proj ect
Bud et
$146, 781
$146,781
Notes
All indirect costs must be pre-approved by the County. City must submit an Indirect Cost Allocation Plan to County, in a form specified by County, demonstrating the appropriate share of general and administrative costs.

$ 12.500

AMOU
RCTC $6,
Grant
T

SOURCE AMOUNT SOURCE AMOUNT
G. Total Amount of Non- CDBG Leveraging

TYPE TOTAL
III.

C.
l.

RCTC $44,533
Match
Program
Donations $1,200 $3,200
TOTAL: $134 281

ADMINISTRATIVE REQUIREMENTS
Accounting Standards
The City agrees to comply with the Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200) and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentationfor all costs incurred.

Cost Principles
The City shall administer its program in conformance with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200).

These principlesshall be applied for all costs incurred whether charged on a direct or indirect basis.

Documentation and Record Keeping
Records to be Maintained.

The City and its subrecipients will maintain all records required by the Federal regulations speci?ed in 24 CFR 570.506, that are pertinentto the activities to be funded under this Agreement. Such records shall include but not he limited to:
ii.
iii.
iv.
vi.

Vii.

Records providing a full description of each activity undertaken; Records demonstrating that each activity undertaken meets one of the National Objectives of the CDBG program;
Records required to determine the eligibility of activities; Records required to document the acquisition,improvement, use or disposition of real property acquired or improvedwith CDBG assistance; Records documenting compliance with the fair housing and equal opportunity components of the CDBG program;
Financial recOrds as required by 24 CFR 570.502, and 2 CFR 200; and Other records necessary to document compliance with Subpart K of 24 CFR Part 570.

Program
Revenues $1,200
$130,981

EXHIBITB
File No.: 2.NR.62-

EXHIBIT B
File No.: 2.NR.62-23

2. Records Retention:

The City shall retain all CDBG-related?nancial records, supporting documents, contracts, and agreements for a period of four (4) years. The retention period begins on the date of the submission of the County’s annual performance and evaluation report to HUD in which the activities assisted under the Agreement are reported forthe final time. The City will retain all National Objective documentation, including lowmoderate income certi?cation, ethnicity, and other pertinent data for a period of four (4) years after submission of the County’s annual performanceand evaluation report to HUD. Notwithstanding the above, if there is litigation, claims, audits, negotiations or other actions that involve any of the records cited and that have started before the expiration of the four-year period, then such records must be retained until completionof the actions and resolution of all issues.

3. Client Data:

The City shall maintain client data demonstratingclient eligibility for services provided. Such data shall include, but not be limited to, client name, address, income level or other basis for determining eligibility, and description of service provided. Such information shall be made available to County monitors or their designees for review upon request.

4. Disclosure:

The City understands that client information collected under this contract is privateand the use or disclosure of such information, when not directly connected with the administration of the County’s or City’s responsibilitieswith respect to services providedunder this contract, is prohibitedby applicable federal and State law unless written consent is obtained from such person receiving service and, in the case of a minor, that of a responsible parent/guardian.

5. Close-outs:

The City’s obligation to the County shall not end until all close—outrequirements are completed. Activities during this close-out period shall include, but are not limited to: making ?nal payments, disposing of program assets (including the return of all unused materials, equipment, unspent cash advances, program income balances, and accounts receivable to the County), and determining the custodianship of records.

Notwithstanding the foregoing, the terms of this Agreement shall remain in effect during any period that the City has control over CDBG funds, including program income.

6. Audits & Ins ections:

All City records with respect to any matters covered by this Agreement shall be made available to the County, HUD, and the Controller General of the United States or any of their authorized representatives, at any time during normal business hours, as often as deemed necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Any de?ciencies noted in audit reports must be fully cleared by the City within 30 days after receipt by the City. Failure of the City to comply with the above audit requirements will constitute a violation of this contract and may result in the withholding of future payments. The City hereby agrees to have an annual agency audit conducted in accordance with current County policy concerning subrecipient audits, the Single Audit Act, and the Of?ce of Management and Budget (OMB) Title 2 US. Code of Federal Regulations(CFR) Part 200, Uniform Administrative Requirements, Costs Principles, and Audit Requirements for Federal Awards (Uniform Guidance).

IV. PROJECT IMPLEMENTATION AND SCHEDULE
Unless pre-approved by County, CITY will perform and complete the activities described in Section II in conformance with the schedule of tasks and milestones listed below:

Tasks / Milestone Start Date Com letion Date
CompleteSponsor September2023 September 2023
Training
Implement Program Activities July 1, 2023 March 29, 2024 Execute SupplementalAgreement September 2023 January 2024 & Notice to Incur Cost
City Submits Quarterly October 2023 March 29, 2024 2
PerformanceReports to County
County Monitoring of City TBD
Performance
City Submits Monthly October 2023 March 29, 2024 3
Direct Benefit Reports
City Submits Reimbursement October 2023 March 29, 2024 4 Requests
1 The Notice to Incur Cost Letter will provide the speci?c program implementationdate for this CDBG-fundedactivity.
2, 3, 4 Submittal of required documentation is determined by the speci?c bene?t period of the CDBGfunded activity. Con?rm performancerequirements with CDBG Program Manager.

CDBG Program Services Complete March 29, 2024
V. SPECIAL CONDITIONS /PERFORMANCE REQUIREMENTS
Sponsor must collect eligibility Self-Certi?cations from EVERY artici ant in the CDBGfunded r0 ram. At a minimum, participants must certify that they are 55 years of age or older, and they must report their race. This documentationmust be submittedto HWS on a monthly basis for new participants unless otherwise authorized in writing by CDBG program staff.

Once the Notice to Incur Cost letter is received, City must submit monthly reimbursement requests unless another schedule is approved, in writing, by HWS. Further, at least 75% of all 2023-24 CDBG funds must be drawn down by January 12, 2024, and 100% of all 2023-24 CDBG funds must be drawn down by March 29, 2024.

TBD

EXHIBITB
File No.: 2.NR.62-23

City Council

STAFF REPORT
Date: September 18, 2024 Agenda Item:

3.E.

To: Honorable Mayor and City Council Members
From: Amanda Hamilton, Facilities and Maintenance
Director
Prepared By: Amanda Hamilton, Facilities and Maintenance Director
Department: Facilities and Maintenance
SUBJECT:

Acceptance of Bids and Award of Contract for the Pikes Peak Park ADA Synthetic Poured-In-Place Surfacing Project
RECOMMENDATION:

Accept bids and award contract to Pacific Tide Construction in the amount of $447,904; and authorize the Interim City Manager to approve contract change orders up to 10% of the original contract.

SUMMARY:

The Pikes Peak Park Playground Replacement Project (Project No. 4407.8) is approved as a Capital Improvement Project for Fiscal Year 2024-25. The project involves two contracts: GameTime for the procurement and installation of the new inclusive playground, and the proposed contract for ADA Synthetic Poured-In-Place (PIP) Surfacing. This contract includes removing the existing playground, reconstructing the subbase and drainage, and installing ADA-compliant PIP rubberized surfacing. It is recommended that the City Council award this contract to Pacific Tide Construction.

BACKGROUND:

On July 17, 2024, the City Council authorized a contract with GameTime for the procurement and installation of an inclusive playground at Pikes Peak Park. This project was divided into two contracts to adhere to the various funding source requirements.

The initial contract with GameTime, executed under a cooperative purchasing agreement, addressed the procurement and installation of the playground equipment.

The surfacing for the playground, funded primarily through Community Development Block Grant (CDBG) funds, is subject to stricter federal regulations that require a public bidding process. To ensure compliance with these regulations, the City staff is now

seeking the City Council’s approval for an additional contract with Pacific Tide Construction. This separation of contracts allows the City to meet both the cooperative purchasing standards for the equipment and the public bidding requirements for the surfacing, thus effectively managing the project while adhering to all applicable funding regulations.

The Pacific Tide Construction contract will address the remaining phases of the project not covered by GameTime. This includes the demolition and removal of the existing playground, reconstruction of the subbase and drainage, and installation of the multicolored PIP rubberized play surface. The PIP surfacing is essential for ADA compliance, providing enhanced shock absorption and accessibility. Additionally, it features interactive artwork that fosters imaginative play and stimulates creativity, further enhancing the playground’s inclusive design and enriching young minds.

Pacific Tide Construction will also manage the installation of temporary fencing around the playground area and provide signage and public notifications to inform park users about the upcoming improvements to Pikes Peak Park.

The project schedule is as follows:

On July 29, 2024, the Notice of Inviting Bids was posted on the PlanetBids Portal. On August 29, 2024, bids were received, ranging from $447,904 to $639,500. Pacific Tide Construction submitted the lowest-responsive bid in the amount of $447,904.

Pacific Tide Construction holds a valid A Contractor’s License with the State of California and has successfully completed similar projects for the Cities of Los Angeles and Rowland Heights. Their extensive expertise in designing and constructing playground systems and PIP rubberized surfacing, along with excellent references and positive reviews from both GameTime and the Riverside County CDBG Program Manager, underscores their qualifications. Their bid has been verified as compliant with the project’s plans and specifications.

It is recommended that the City Council award the Pikes Peak Park ADA Synthetic Poured-In-Place Surfacing Project to Pacific Tide Construction.

FISCAL IMPACT:

The Pikes Peak Park Playground Replacement Project (Project No. 4407.8) is approved as a Capital Improvement Project (CIP) for Fiscal Year 2024-25 with a total budget of $1,727,000.

The second phase of this project, known as the Pikes Peak Park ADA Synthetic Poured-In-Place Surfacing Project , will be funded through a combination of remaining CDBG funds and a portion of the Park Development Impact Fee Funds.

The funding breakdown for this phase is as follows:
 $266,000 from CDBG grant funds
 $620,000 from Park Development Impact Fees
 $830,000 from Measure R funds
RELATIONSHIP TO STRATEGIC PLAN:

This item closely aligns with Strategic Plan No. 5. Infrastructure and Asset Management: Ensure timely preservation, replacement, improvement and acquisition of infrastructure and capital assets.

REVIEWED AND APPROVED BY:

Approved by: Lisette Free, Interim City Manager
Approved as to Form: Harper and Burns, LLP, City Attorney ATTACHMENT(S):

Contract_Pikes Peak Park PIP Surfacing
Pikes Peak Surfacing Project Bid Results
PIP DESIGN_ Pikes Peak Park ADA Synthetic PIP
Pacific Tide Bid Package
Pacific Tide Bid Bond

1 CITY OF NORCO

PIKES PEAK PARK ADA SYNTHETIC POURED-IN-PLACE SURFACE PROJECT

AGREEMENT

1. Parties and Date.

This Agreement is made and entered into this 18th day of September 2024 by and between the City of Norco, a municipal corporation of the State of California, located at 2870 Clark Avenue, Norco, California 92860, County of Riverside, State of California, (hereinafter referred to as “City”) and Pacific Tide Construction, a corporation with its principal place of business at 19360 Rinaldi Street (hereinafter referred to as “Contractor”). City and Contractor are sometimes individually referred to as “Party” and collectively as “Parties” in this Agreement.

2. Recitals.

2.1 Contractor.

Contractor desires to perform and assume responsibility for the provisions of Pikes Peak Park ADA Synthetic Poured-In-Place Project on the terms and conditions set forth in this Agreement. Contractor represents that it is experienced in installation of playground synthetic surfaces for public clients, that it and its employees or subcontractors have all necessary licenses and permits to perform the Services in the State of California, and that is familiar with the plans of the City.

2.2 Project.

The City desires to engage the Contractor to render such services for the PIKES PEAK PARK ADA SYNTHETIC POURED-IN-PLACE SURFACE Project (“Project”) as set forth in this Agreement.

3. Terms.

3.1 Scope of Services and Term.

3.1.1 General Scope of Services. Contractor promises and agrees to furnish to the City all labor, materials, tools, equipment, services, and incidental and customary work necessary to construct the improvements outlined by the Pikes Peak Park ADA Synthetic Poured-In-Place Surface Project. The Project is more particularly described in Exhibit A attached hereto and incorporated herein by reference. The Project shall be subject to, and performed in accordance with this Agreement, the exhibits attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations.

3.1.2 Term. The terms of this Agreement shall begin at the Notice to Proceed and shall complete all work within 60 working days. Contractor shall complete

2 the Services within the term of this Agreement and shall meet any other established schedules and deadlines.

3.2 Responsibilities of Contractor.

3.2.1 Control and Payment of Subordinates; Independent Contractor.

The Project shall be constructed by Contractor or under its supervision. Contractor will determine the means, methods and details of constructing the Project subject to the requirements of this Agreement. City retains Contractor on an independent contractor basis and not as an employee. Any additional personnel constructing the Project under this Agreement on behalf of Contractor shall also not be employees of City and shall at all times be under Contractor’s exclusive direction and control. Contractor shall pay all wages, salaries, and other amounts due such personnel in connection with the construction of the Project under this Agreement and as required by law. Contractor shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers’ compensation insurance.

3.2.2 Schedule of Services. Contractor shall construct the Project expeditiously, within the term of this Agreement, and in accordance with the Project timeframe set forth herein. Contractor represents that it has the professional and technical personnel required to construct the Project in conformance with such conditions. In order to facilitate Contractor’s conformance with the Project timeframe, City shall respond to Contractor’s Requests for Information in a timely manner. Upon request of City, Contractor shall provide a more detailed schedule of anticipated performance to meet the Project timeframe.

3.2.3 Conformance to Applicable Requirements. All work prepared by Contractor shall be subject to the approval of City.

3.2.4 City’s Representative. The City hereby designates the Director of Facilities and Maintenance or her designee, to act as its representative for the performance of this Agreement (“City’s Representative”). City’s Representative shall have the power to act on behalf of the City for all purposes under this Agreement.

Contractor shall not accept direction or orders from any person other than the City’s Representative or his or her designee.

3.2.5 Contractor’s Representative. Contractor hereby designates Wyatt Underwood, President, or his designee, to act as its representative for the performance of this Agreement (“Contractor’s Representative”). Contractor’s Representative shall have full authority to represent and act on behalf of the Contractor for all purposes under this Agreement. The Contractor’s Representative shall supervise and direct the Project, using his best skill and attention, and shall be responsible for all means, methods, techniques, sequences and procedures and for the satisfactory coordination of all portions of the Project under this Agreement.

3 3.2.6 Coordination of Project. Contractor agrees to work closely with City staff in the construction of the Project and shall be available to City’s staff, consultants and other staff at all reasonable times.

3.2.7 Standard of Care; Performance of Employees. Contractor shall construct the Project under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Contractor represents and maintains that it is skilled in the professional calling necessary to construct the Project. Contractor warrants that all employees and subcontractors shall have sufficient skill and experience to construct the Project. Finally, Contractor represents that it, its employees and subcontractors have all licenses, permits, qualifications and approvals of whatever nature that are legally required to construct the Project, including a City Business License, and that such licenses and approvals shall be maintained throughout the term of this Agreement. As provided for in the indemnification provisions of this Agreement, Contractor shall perform, at its own cost and expense and without reimbursement from the City, any services necessary to correct errors or omissions which are caused by the Contractor’s failure to comply with the standard of care provided for herein. Any employee of the Contractor or its sub-contractors who is determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat to the safety of persons or property, or any employee who fails or refuses to construct the Project in a manner acceptable to the City, shall be promptly removed from the Project by the Contractor and shall not be re-employed to perform any work on the Project.

3.2.7.1Period of Performance and Liquidated Damages. Contractor shall perform and complete the Project under this Agreement within the term set forth in Section 3.1.2 above (“Term”). Contractor shall construct the Project in strict accordance with any timeframe provided herein, or which may be provided separately in writing to the Contractor. Contractor agrees that if the Project is not completed within the aforementioned Term and/or pursuant to any such completion schedule or Project milestones developed pursuant to provisions of this Agreement, it is understood, acknowledged and agreed that the City will suffer damage. Pursuant to Government Code Section 53069.85, Contractor shall pay to the City as fixed and liquidated damages, and not as a penalty, the sum of $500.00 per working day:

3.2.8 Laws and Regulations. Contractor shall keep itself fully informed of and in compliance with all local, state and federal laws, rules and regulations in any manner affecting the performance of the Project, including all Cal/OSHA requirements, and shall give all notices required by law. Contractor shall be liable for all violations of such laws and regulations in connection with the Project. If the Contractor performs any work knowing it to be contrary to such laws, rules and regulations and without giving written notice to the City, Contractor shall be solely responsible for all costs arising therefrom. Contractor shall defend, indemnify and hold City, its officials, directors, officers, employees and agents free and harmless, pursuant to the indemnification provisions of this Agreement, from any claim or liability arising out of any failure or alleged failure to comply with such laws, rules or regulations.

4 3.2.9 Insurance.

Insurance.

3.2.9.1 Time for Compliance. Contractor shall not commence work under this Agreement until it has provided evidence satisfactory to the City that it has secured all insurance required under this section. In addition, Contractor shall not allow any subcontractor to commence work on any subcontract until it has provided evidence satisfactory to the City that the subcontractor has secured all insurance required under this section.

3.2.9.2 Minimum Requirements. Throughout the life of this Contract, Contractor shall pay for and maintain in full force and effect all policies of insurance required hereunder with an insurance company(ies) either (i) admitted by the California Insurance Commissioner to do business in the State of California and rated not less than “A- VII” in Best’s Insurance Rating Guide, or (ii) as may be authorized in writing by City Manager or his/her designee at any time and in his/her sole discretion. The following policies of insurance are required:
(i) COMMERCIAL GENERAL LIABILITY insurance which shall be at least as broad as the most current version of Insurance Services Office (ISO) Commercial General Liability Coverage Form CG 00 01 and include insurance for “bodily injury,” “property damage” and “personal and advertising injury” with coverage for premises and operations (including the use of owned and non-owned equipment), products and completed operations, and contractual liability (including, without limitation, indemnity obligations under the Contract) with limits of liability of not less than the following:
$2,000,000 per occurrence for bodily injury and property damage $1,000,000 per occurrence for personal and advertising injury $2,000,000 aggregate for products and completed operations $4,000,000 general aggregate
(ii) COMMERCIAL AUTOMOBILE LIABILITY insurance which shall be at least as broad as the most current version of Insurance Service Office (ISO) Business Auto Coverage Form CA 00 01, and include coverage for all owned, hired, and non owned automobiles or other licensed vehicles (Code 1 Any Auto) with limits of liability of not less than $1,000,000 per accident for bodily injury and property damage. (iii) WORKERS’ COMPENSATION insurance as required under the California Labor Code.
(iv) EMPLOYERS’ LIABILITY insurance with limits of liability of not less than $1,000,000 each accident, $1,000,000 disease policy limit and $1,000,000 disease each employee.
(v) BUILDERS RISK (Course of Construction) insurance in an amount equal to the completed value of the project with no coinsurance penalty provisions. (Only required if

5 the project includes new construction of a building; or renovation of, or addition to, an existing building.)
(vi) CONTRACTORS POLLUTION LIABILITY (Unless waived
in writing by the City Manager or his/her designee in his/her sole discretion, Contractors Pollution Liability is required for all environmental and water remediation work and for all work transporting fuel. Unless waived in writing by the City Manager or his/her designee in his/her sole discretion, Contractors Pollution Liability is also required for demolition, renovation, HVAC, plumbing or electrical (including, without limitation, lighting) work on any structure built prior to the year 1990.) insurance with limits of liability of not less than the following:
$1,000,000 per occurrence or claim
$2,000,000 general aggregate per annual policy period
In the event Contractor purchases an Umbrella or Excess insurance policy(ies) to meet the minimum limits of insurance set forth above, this insurance policy(ies) shall “follow form” and afford no less coverage than the primary insurance policy(ies).

Should this Contract involve any lead based, mold or asbestos environmental hazard, either the Automobile Liability insurance policy or the Contractors Pollution Liability insurance policy shall be endorsed to include Transportation Pollution Liability insurance covering materials to be transported by Contractor pursuant to the Contract.

In the event this Contract involves any lead-based environmental hazard (e.g., lead based paint), the Contractors Pollution Liability insurance policy shall be endorsed to include coverage for lead based environmental hazards. In the event this Contract involves any asbestos environmental hazard (e.g., asbestos remediation), the Contractors Pollution Liability insurance policy shall be endorsed to include coverage for asbestos environmental hazards. In the event this Contract involves any mold environmental hazard (e.g., mold remediation), the Contractors Pollution Liability insurance policy shall be endorsed to include coverage for mold environmental hazards and “microbial matter including mold” within the definition of “Pollution” under the policy.

Contractor shall be responsible for payment of any deductibles contained in any insurance policies required hereunder and Contractor shall also be responsible for payment of any self-insured retentions. Any deductibles or self-insured retentions must be declared to, and approved by, the City Manager or his/her designee in his/her sole discretion. At the option of the City Manager or his/her designee, either (i) the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects City, its officers, officials, employees and agents; or (ii) Contractor shall provide a financial guarantee, satisfactory to the City Manager or his/her designee in his/her sole discretion, guaranteeing payment of losses and related investigations, claim administration and defense expenses. At no time shall City be responsible for the payment of any deductibles or self-insured retentions.

All policies of insurance required hereunder shall be endorsed to provide that the coverage shall not be cancelled, non-renewed, reduced in coverage or in limits except

6 after 30 calendar day written notice has been given to City. Upon issuance by the insurer, broker, or agent of a notice of cancellation, non-renewal, or reduction in coverage or in limits, Contractor shall furnish City with a new certificate and applicable endorsements for such policy(ies). In the event any policy is due to expire during the work to be performed for City, Contractor shall provide a new certificate, and applicable endorsements, evidencing renewal of such policy not less than 15 calendar days prior to the expiration date of the expiring policy.

The General Liability and Automobile Liability insurance policies shall be written on an occurrence form. The Contractors Pollution Liability insurance policy shall be written on either an occurrence form, or a claims-made form. The General Liability (including ongoing operations and completed operations), Automobile Liability and Contractors Pollution Liability insurance policies shall name City, its officers, officials, employees and agents as an additional insured. All such policies of insurance shall be endorsed so Contractor’s insurance shall be primary, and no contribution shall be required of City, its officers, officials, employees and agents. The Builders Risk (Course of Construction) insurance policy shall be endorsed to name the City as a loss payee. Any Workers’ Compensation insurance policy shall contain a waiver of subrogation as to City, its officers, officials, employees and agents. The coverage(s) shall contain no special limitations on the scope of protection afforded to City, its officers, officials, employees and agents. If Contractor maintains higher limits of liability than the minimums shown above, City requires and shall be entitled to coverage for the higher limits of liability maintained by Contractor.

Claims-Made Policies – If any coverage required is written on a claims-made coverage form:
(i) The retroactive date must be shown, and must be before the effective date of the Contract or the commencement of work by Contractor.
(ii) Insurance must be maintained, and evidence of insurance must be provided for at least 5 years after completion of the work or termination of the Contract, whichever first occurs.
(iii) If coverage is canceled or non-renewed, and not replaced with another claimsmade policy form with a retroactive date prior to the effective date of the Contract, or work commencement date, Contractor must purchase extended reporting period coverage for a minimum of 5 years after completion of the work or termination of the Contract, whichever first occurs.
(iv) A copy of the claims reporting requirements must be submitted to City for review. (v) These requirements shall survive expiration or termination of the Contract.

Contractor shall furnish City with all certificate(s) and applicable endorsements effecting coverage required hereunder. All certificates and applicable endorsements are to be received and approved by the City’s Risk Manager or his/her designee in his/her sole discretion prior to City’s execution of the Contract and before work commences. Upon

7 request of City, Contractor shall immediately furnish City with a complete copy of any insurance policy required under this Contract, including all endorsements, with said copy certified by the underwriter to be a true and correct copy of the original policy. This requirement shall survive expiration or termination of this Contract.

If at any time during the life of the Contract or any extension, Contractor or any of its subcontractors fail to maintain any required insurance in full force and effect, all work under this Contract shall be discontinued immediately, and all payments due or that become due to Contractor shall be withheld until notice is received by City that the required insurance has been restored to full force and effect and that the premiums therefore have been paid for a period satisfactory to City. Any failure to maintain the required insurance shall be sufficient cause for City to terminate this Contract. No action taken by City hereunder shall in any way relieve Contractor of its responsibilities under this Contract.

The fact that insurance is obtained by Contractor shall not be deemed to release or diminish the liability of Contractor, including, without limitation, liability under the indemnity provisions of this Contract. The duty to indemnify City shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by Contractor. Approval or purchase of any insurance contracts or policies shall in no way relieve from liability nor limit the liability of Contractor, its principals, officers, agents, employees, persons under the supervision of Contractor, vendors, suppliers, invitees, consultants, sub-consultants, subcontractors, or anyone employed directly or indirectly by any of them.

In the event of a partial or total destruction by the perils insured against of any or all of the work and/or materials herein provided for at any time prior to the final completion of the Contract and the final acceptance by the City of the work or materials to be performed or supplied thereunder, the Contractor shall promptly reconstruct, repair, replace, or restore all work or materials so destroyed or injured at his/her sole cost and expense. Nothing herein provided for shall in any way excuse the Contractor or his/her insurance company from the obligation of furnishing all the required materials and completing the work in full compliance with the terms of the Contract.

If Contractor should subcontract all or any portion of the services to be performed under this Contract, Contractor shall require each subcontractor to provide insurance protection in favor of City, its officers, officials, employees and agents in accordance with the terms of each of the preceding paragraphs, except that the subcontractors’ certificates and endorsements shall be on file with Contractor and City prior to the commencement of any work by the subcontractor.

3.2.10 Safety. Contractor shall execute and maintain its work so as to avoid injury or damage to any person or property. In constructing the Project, the Contractor shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions as applicable shall include, but shall not be

8 limited to: (A) adequate life protection and lifesaving equipment and procedures; (B) instructions in accident prevention for all employees and subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures.

3.2.11 Bonds.

3.2.11.1 Performance Bond. Contractor shall execute and provide to City concurrently with this Agreement a Performance Bond in the amount of the total, not-to-exceed compensation indicated in this Agreement, and in a form provided or approved by the City. If such bond is required, no payment will be made to Contractor until it has been received and approved by the City.

3.2.11.2 Payment Bond. Contractor shall execute and provide to City concurrently with this Agreement a Payment Bond in the amount of the total, not-toexceed compensation indicated in this Agreement, and in a form provided or approved by the City. If such bond is required, no payment will be made to Contractor until it has been received and approved by City.

3.2.11.3 Bond Provisions. Should, in City’s sole opinion, any bond become insufficient or any surety be found to be unsatisfactory, Contractor shall renew or replace the affected bond within 10 days of receiving notice from City. In the event the surety or Contractor intends to reduce or cancel any required bond, at least thirty (30) days prior written notice shall be given to the City, and Contractor shall post acceptable replacement bonds at least ten (10) days prior to expiration of the original bonds. No further payments shall be deemed due or will be made under this Agreement until any replacement bonds required by this section are accepted by the City. To the extent, if any, that the total compensation is increased in accordance with the Agreement, the Contractor shall, upon request of the City, cause the amount of the bonds to be increased accordingly and shall promptly deliver satisfactory evidence of such increase to the City. To the extent available, the bonds shall further provide that no change or alteration of the Agreement (including, without limitation, an increase in the total compensation, as referred to above), extensions of time, or modifications of the time, terms, or conditions of payment to the Contractor, will release the surety. If the Contractor fails to furnish any required bond, the City may terminate this Agreement for cause.

3.2.11.4 Surety Qualifications. Only bonds executed by an admitted surety insurer, as defined in Code of Civil Procedure Section 995.120, shall be accepted. The surety must be a California admitted surety with a current A.M. Best’s rating no less than A:VIII and satisfactory to the City. If a California admitted surety insurer issuing bonds does not meet these requirements, the insurer will be considered qualified if it is in conformance with Section 995.660 of the California Code of Civil Procedure, and proof of such is provided to the City.

9 3.3 Fees and Payments.

3.3.1 Compensation. Contractor shall receive compensation, including authorized reimbursements, for all construction services rendered under this Agreement at the rates set forth in Exhibit B attached hereto and incorporated herein by reference.

Extra work may be authorized, as described below, and if authorized, will be compensated at the rates and manner set forth in this Agreement.

3.3.2 Payment of Compensation. Contractor shall submit to City a monthly itemized statement which indicates work completed by Contractor. The statement shall describe the amount of Services and supplies provided since the initial commencement date, or since the start of the subsequent billing periods, as appropriate, through the date of the statement. City shall, within 45 days of receiving such statement, review the statement and pay all approved charges thereon.

3.3.3 Reimbursement for Expenses. Contractor shall not be reimbursed for any expenses unless authorized in writing by City.

3.3.4 Extra Work. At any time during the term of this Agreement, City may request that Contractor perform Extra Work. As used herein, “Extra Work” means any work which is determined by City to be necessary for the proper completion of the Project, but which the parties did not reasonably anticipate would be necessary at the execution of this Agreement. Contractor shall not perform, nor be compensated for, Extra Work without written authorization from City’s Representative.

3.3.5 Prevailing Wages. Contractor is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 1600, et seq., ("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the performance of other requirements on "public works" and "maintenance" projects. If the Services are being performed as part of an applicable "public works" or "maintenance" project, as defined by the Prevailing Wage Laws, and if the total compensation is $1,000 or more, Contractor agrees to fully comply with such Prevailing Wage Laws. City shall provide Contractor with a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement. Contractor shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the Services available to interested parties upon request, and shall post copies at the Contractor's principal place of business and at the project site. Contractor shall defend, indemnify and hold the City, its elected officials, officers, employees and agents free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws.

3.4 Accounting Records.

3.4.1 Maintenance and Inspection. Contractor shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable. Contractor shall allow a

10 representative of City during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Contractor shall allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of five (5) years from the date of final payment under this Agreement.

3.5 General Provisions.

3.5.1 Termination of Agreement.

3.5.1.1Grounds for Termination. City may, by written notice to Contractor, terminate the whole or any part of this Agreement at any time and without cause by giving written notice to Contractor of such termination, and specifying the effective date thereof, at least seven (7) days before the effective date of such termination. Upon termination, Contractor shall be compensated only for those services which have been adequately rendered to City, and Contractor shall be entitled to no further compensation.

Contractor may not terminate this Agreement except for cause.

3.5.1.2Effect of Termination. If this Agreement is terminated as provided herein, City may require Contractor to provide all finished or unfinished Documents and Data and other information of any kind prepared by Contractor in connection with the performance of Services under this Agreement. Contractor shall be required to provide such document and other information within fifteen (15) days of the request.

3.5.1.3Additional Services. In the event this Agreement is terminated in whole or in part as provided herein, City may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated.

3.5.2 Delivery of Notices. All notices permitted or required under this Agreement shall be given to the respective parties at the follow address, or at such other address as the respective parties may provide in writing for this purpose:

Contractor:

Pacific Tide Construction
19630 Rinaldi Street - 150
Northridge, CA 91326
(424) 276-1324
Attention: Wyatt Underwood
City:

City of Norco
2870 Clark Avenue
Norco, CA 92860
(951) 270-5633
Attention: Director of Facilities and Maintenance
Such notice shall be deemed made when personally delivered or when mailed, fortyeight (48) hours after deposit in the US Mail, first class postage prepaid and addressed

11 to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.

3.5.3 Cooperation; Further Acts. The Parties shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate or convenient to attain the purposes of this Agreement.

3.5.4 Attorney’s Fees. If either party commences an action against the other party, either legal, administrative or otherwise, arising out of or in connection with this Agreement, the parties shall each bear their own attorney’s fees.

3.5.5 Indemnification. Contractor shall defend, indemnify and hold the City, its officials, officers, employees, volunteers, and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage, or injury, in law or equity, to property or persons, including wrongful death, in any manner arising out of or incident to any alleged acts, omissions or willful misconduct of Contractor, its officials, officers, employees, agents, consultants, and contractors arising out of or in connection with the construction of the Project, or this Agreement, including without limitation the payment of all consequential damages and attorney’s fees and other related costs and expenses. Contractor shall defend, at Contractor’s own cost, expense and risk, any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against City, its directors, officials, officers, employees, agents, or volunteers. Contractor shall pay and satisfy any judgment, award or decree that may be rendered against City or its directors, officials, officers, employees, agents, or volunteers, in any such suit, action or other legal proceeding.

Contractor shall reimburse City and its directors, officials, officers, employees, agents, and/or volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Contractor’s obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the City, its directors, official’s officers, employees, agents, or volunteers.

3.5.6 Entire Agreement. This Agreement contains the entire Agreement of the parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. This Agreement may only be modified by a writing signed by both parties.

3.5.7 Governing Law. This Agreement shall be governed by the laws of the State of California. Venue shall be in Riverside County.

3.5.8 Time of Essence. Time is of the essence for each and every provision of this Agreement.

3.5.9 City’s Right to Employ Other Contractors. City reserves right to employ other contractors in connection with this Project.

3.5.10 Successors and Assigns. This Agreement shall be binding on the successors and assigns of the parties.

12 3.5.11 Assignment or Transfer. Contractor shall not assign, hypothecate or transfer, either directly or by operation of law, this Agreement or any interest herein without the prior written consent of the City. Any attempt to do so shall be null and void, and any assignees, hypothecates or transferees shall acquire no right or interest by reason of such attempted assignment, hypothecation or transfer.

3.5.12 Construction; References; Captions. Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days or period for performance shall be work days (Monday through Friday, excluding holidays). All references to Contractor include all personnel, employees, agents, and subcontractors of Contractor, except as otherwise specified in this Agreement. All references to City include its elected officials, officers, employees, agents, and volunteers except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content or intent of this Agreement.

3.5.13 Amendment; Modification. No supplement, modification or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties.

3.5.14 Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel or otherwise.

3.5.15 No Third-Party Beneficiaries. There are no intended third-party beneficiaries of any right or obligation assumed by the Parties.

3.5.16 Invalidity; Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

3.5.17 Prohibited Interests. Contractor maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Contractor, to solicit or secure this Agreement. Further, Contractor warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Contractor, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. Contractor further agrees to file, or shall cause its employees or subcontractors to file, a Statement of Economic Interest with the City’s Filing Officer as required under state law in the performance of the Services. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

13 3.5.18 Equal Opportunity Employment. Contractor represents that it is an equal opportunity employer and it shall not discriminate against any subcontractor, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Contractor shall also comply with all relevant provisions of City’s Minority Business Enterprise program, Affirmative Action Plan or other related programs or guidelines currently in effect or hereinafter enacted.

3.5.19 Labor Certification. By its signature hereunder, Contractor certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Workers’ Compensation or to undertake self-insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Services.

3.5.20 Authority to Enter Agreement. Contractor has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and bind each respective Party.

3.5.21 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original.

3.6 Subcontracting.

3.6.1 Prior Approval Required. Contractor shall not subcontract any portion of the work required by this Agreement, except as expressly stated herein, without prior written approval of City. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement.

3.7 Special Federal Requirements.

3.7.1 Contractor and Owner do hereby acknowledge that this project will be partially or fully funded with Community Development Block Grant (CDBG) funds [24 CFR 570] and is therefore subject to applicable Federal procurement, labor, environmental, equal opportunity, and other regulations.

3.7.2 Contractor shall maintain and keep books and records on a current basis, recording all transactions pertaining to this agreement in a form in accordance with generally acceptable accounting principles. Said books and records shall be made available to the County, the State of California, the Federal government, and to any authorized representative thereof for the purposes of audit at all reasonable times and places. All such books and records shall be retained for such periods of time as required by law, provided, however, notwithstanding any shorter periods of retention, all books, records, and supporting detail shall be retained for a period of at least four (4) years after the expiration of the term of this Agreement.

14 3.7.3 Contractor shall comply with the Davis-Bacon Fair Labor Standards Act (40 U.S.C.A. Section 3141-3148) and the implementation regulations thereof. Contractor shall comply with the U.S. Department of Housing and Urban Development’s Federal Labor Standards Provisions (HUD 4010). Contractor acknowledges that the applicable Wage Determination for this project is:

General Decision Number: CA20240025
Modification Number: 10
Date: 8/16/2024

3.7.4 Section 3 Compliance: The Contractor hereby acknowledges that this federally-funded project is subject to Section 3 of the Housing and Urban Development Act of 1968 [12 U.S.C. 1701u and 24 CFR Part 75] and agrees to the following:

3.7.5 The work to be performed under this contract is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701u (Section 3). The purpose of Section 3 is to ensure that employment and other economic opportunities generated by HUD assistance or HUDassisted projects covered by Section 3, shall, to the greatest extent feasible, be directed to low- and very low-income persons, particularly persons who are recipients of HUD assistance for housing.

3.7.6. The parties to this contract agree to comply with HUD's regulations in 24 CFR Part 75, which implement Section 3. As evidenced by their execution of this contract, the parties to this contract certify that they are under no contractual or other impediment that would prevent them from complying with the Part 75 regulations.

3.7.7 The contractor agrees to send to each labor organization or representative of workers with which the contractor has a collective bargaining agreement or other understanding, if any, a notice advising the labor organization or workers' representative of the contractor's commitments under this Section 3 clause and will post copies of the notice in conspicuous places at the work site where both employees and applicants for training and employment positions can see the notice. The notice shall describe the Section 3 preference, shall set forth minimum number and job titles subject to hire, availability of apprenticeship and training positions, the qualifications for each; and the name and location of the person(s) taking applications for each of the positions; and the anticipated date the work shall begin.

3.7.8 The contractor agrees to include this Section 3 clause in every subcontract subject to compliance with regulations in 24 CFR Part 75, and agrees to take appropriate action, as provided in an applicable provision of the subcontract or in this Section 3 clause, upon a finding that the subcontractor is in violation of the regulations in 24 CFR Part 75. The contractor will not subcontract with any subcontractor where the contractor has notice or knowledge that the subcontractor has been found in violation of the regulations in 24 CFR Part 75.

3.7.9 The contractor will certify that any vacant employment positions, including training positions, that are filled (1) after the contractor is selected but before the contract is executed, and (2) with persons other than those to whom the regulations

15 of 24 CFR Part 75 require employment opportunities to be directed, were not filled to circumvent the contractor's obligations under 24 CFR Part 75.

3.7.10 Noncompliance with HUD's regulations in 24 CFR Part 75 may result in sanctions, termination of this contract for default, and debarment or suspension from future HUD assisted contracts.

3.7.11 With respect to work performed in connection with Section 3 covered Indian housing assistance, Section 7(b) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450e) also applies to the work to be performed under this contract. Section 7(b) requires that to the greatest extent feasible (i) preference and opportunities for training and employment shall be given to Indians, and (ii) preference in the award of contracts and subcontracts shall be given to Indian organizations and Indian-owned Economic Enterprises. Parties to this contract that are subject to the provisions of Section 3 and Section 7(b) agree to comply with Section 3 to the maximum extent feasible, but not in derogation of compliance with Section7(b).

3.8 Additional Federal Requirements

3.8.1 Whereas, the work under this Agreement is subject to applicable Federal, State, and local laws and regulations, including but not limited to the regulations pertaining to the Community Development Block Grant program (24 CFR Part 570) and the Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200). Contractor, sub-contractors, Consultants, and subconsultants agree to comply with, and are subject to, all applicable requirements as follows:

3.8.2 Equal Employment Opportunity - Compliance with Executive Order 11246 of September 24, 1965, entitled "Equal Employment Opportunity", as amended by Executive Order 11375 of October 13, 1967, and as supplemented in Department of Labor regulations (41 CFR Part 60). The Contractor/Consultant will not discriminate against any employee or applicant for employment because of race, color, religion, sex, sexual orientation, general identity or national origin. Contractor/Consultant will ensure that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex sexual orientation, general identity or national origin. The Contractor/Consultant will take affirmative action to ensure that applicants are employed and the employees are treated during employment, without regard to their race color, religion, sex, sexual orientation, general identity or national origin. Such actions shall include, but are not limited to, the following:
employment, up-grading, demotion, or transfer; recruitment or recruitment advertising; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The Contractor/Consultant agrees to post in a conspicuous place, available to employees and applicants for employment, notices to be provided by the County setting forth the provisions of this nondiscriminating clause.

16 3.8.3 Copeland “Anti-Kickback” Act (18 U.S.C. 874 and 40 U.S.C.A. Section 3145): All contracts and subgrants in excess of $2,000 for construction or repair awarded by recipients and subrecipients shall include a provision for compliance with the Copeland “Anti-Kickback” Act (18 U.S.C. 874), as supplemented by Department of Labor regulations (29 CFR Part 3, “Contractors and Subcontractors on Public Building or Public Work Financed in Whole or in Part by Loans or Grants from the United States”). The Act provides that each contractor or subrecipient shall be prohibited from inducing, by any means, any person employed in the construction, completion, or repair of public work, to give up any part of the compensation to which he is otherwise entitled. The recipient shall report all suspected or reported violations to HUD.

3.8.4 Davis-Bacon Act, as amended (40 U.S.C.A. Section 3141-3148): When required by Federal program legislation, all construction contracts awarded by the recipients and subrecipients of more than $2000 shall include a provision for compliance with the Davis-Bacon Act (40 U.S.C. A. Section 3141-3148) and as supplemented by Department of Labor regulations (29 CFR Part 5, “Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted Construction”). Under the Davis Bacon Act, contractors shall be required to pay wages to laborers and mechanics at a rate not less than the minimum wages specified in a wage determination made by the U.S. Secretary of Labor. In addition, contractors shall be required to pay wages not less than once a week. The recipient shall place a copy of the current prevailing wage determination issued by the U.S. Department of Labor in each solicitation and the award of a contract shall be conditioned upon the acceptance of the wage determination. The recipient shall report all suspected or reported violations to HUD.

3.8.5 Contract Work Hours and Safety Standards Act (40 U.S.CA.. 32701 through 3708): Where applicable, all contracts awarded by recipients in excess of $2,000 for construction contracts and in excess of $2,500 for other contracts that involve the employment of mechanics or laborers shall include a provision for compliance with the Contract Work Hours and Safety Standards (40 U.S.C.A. 32701–3708), as supplemented by Department of Labor Regulations (29 CFR Part 5). Under Section 40 U.S.C.A. 3702, each contractor shall be required to compute the wages of every mechanic and laborer on the basis of a standard workweek of 40 hours. Work in excess of the standard workweek is permissible provided that the worker is compensated at a rate of not less than 1 1/2 times the basic rate of pay for all hours worked in excess of 40 hours in the workweek. 40 U.S.C.A. 3704of the Act is applicable to construction work and provides that no laborer or mechanic shall be required to work in surroundings or under working conditions which are unsanitary, hazardous or dangerous. These requirements do not apply to the purchases of supplies or materials or articles ordinarily available on the open market, or contracts for transportation or transmission of intelligence.

3.8.6 Rights to Inventions Made Under a Contract or Agreement— Contracts or agreements for the performance of experimental, developmental, or research work shall provide for the rights of the Federal Government and the recipient in any resulting invention in accordance with 37 CFR part 401, “Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts and Cooperative Agreements,” and any implementing regulations issued by HUD.

17 3.8.7 Rights to Data and Copyrights – Contractors and consultants agree to comply with all applicable provisions pertaining to the use of data and copyrights pursuant to 48 CFR Part 27.404-3, Federal Acquisition Regulations (FAR).

3.8.8 Air Pollution Prevention and Control (formally known as the Clean Air Act) (42 U.S.C.A. 7401 et seq.) and the Federal Water Pollution Control Act (33 U.S.C.A. Section 1251 et seq.), as amended:—Contracts and subgrants of amounts in excess of $100,000 shall contain a provision that requires the recipient to agree to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act (42 U.S.C. 7401 et seq.) and the Federal Water Pollution Control Act as amended (33 U.S.C.A. 1251 et seq.). Violations shall be reported to HUD and the Regional Office of the Environmental Protection Agency (EPA).

3.8.9 Byrd Anti-Lobbying Amendment (31 U.S.C.A. 1352)— Contractors who apply or bid for an award of $100,000 or more shall file the required certification. Each tier certifies to the tier above that it will not and has not used Federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any Federal contract, grant or any other award covered by 31 U.S.C. 1352. Each tier shall also disclose any lobbying with non-Federal funds that takes place in connection with obtaining any Federal award. Such disclosures are forwarded from tier to tier up to the recipient.

3.8.10 Debarment and Suspension (Executive Orders (E.O. s) 12549 and 12689)—No contract shall be made to parties listed on the General Services Administration's List of Parties Excluded from Federal Procurement or Nonprocurement Programs in accordance with E.O.s 12549 and 12689, “Debarment and Suspension,” as set forth at 24 CFR part 2424. This list contains the names of parties debarred, suspended, or otherwise excluded by agencies, and contractors declared ineligible under statutory or regulatory authority other than E.O. 12549. Contractors with awards that exceed the small purchase threshold shall provide the required certification regarding its exclusion status and that of its principal employees.

3.8.11 Drug-Free Workplace Requirements— The Anti-Drug Abuse Act of 1988 (41 U.S.C.A. Section 8101-8103)requires grantees (including individuals) of federal agencies, as a prior condition of being awarded a grant, to certify that they will provide drug-free workplaces. Each potential recipient must certify that it will comply with drugfree workplace requirements in accordance with the Act and with HUD's rules at 24 CFR part 2425.

3.8.12 Access to Records and Records Retention: The Consultant or Contractor, and any sub-consultants or sub-contractors, shall allow all duly authorized Federal, State, and/or County officials or authorized representatives access to the work area, as well as all books, documents, materials, papers, and records of the Consultant or Contractor, and any sub-consultants or sub-contractors, that are directly pertinent to a specific program for the purpose of making audits, examinations, excerpts, and transcriptions. The Consultant or Contractor, and any sub-consultants or sub-contractors, further agree to maintain and keep such books, documents, materials, papers, and records, on a current basis, recording all transactions pertaining to this agreement in a

18 form in accordance with generally acceptable accounting principles. All such books and records shall be retained for such periods of time as required by law, provided, however, notwithstanding any shorter periods of retention, all books, records, and supporting detail shall be retained for a period of at least four (4) years after the expiration of the term of this Agreement.

3.8.13 Federal Employee Benefit Clause: No member of or delegate to the congress of the United States, and no Resident Commissioner shall be admitted to any share or part of this agreement or to any benefit to arise from the same.

3.8.14 Energy Efficiency: Mandatory standards and policies relating to energy efficiency which are contained in the State energy conservation plan issued in compliance with the Energy Policy and Conservation Act (Pub. L. 94A 163, Dec. 22, 1975; 42 U.S.C.A. Section 6201, et. seq., 89 Stat. 871).

3.8.15 Procurement of Recovered Materials (2 CFR 200.322.) Non Federal entity that is a state agency or agency of a political subdivision of a state and its contractors must comply with 42 U.S.C. Section 6962 of the Solid Waste Disposal Act (42 U.S.C.A. Section 6901, et seq.), as amended by the Resource Conservation and Recovery Act. The requirements of Section 6002 include procuring only items designated in guidelines of the Environmental Protection Agency (EPA) at 40 CFR part 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition, where the purchase price of the item exceeds $10,000 or the value of the quantity acquired by the preceding fiscal year exceeded $10,000; procuring solid waste management services in a manner that maximizes energy and resource recovery; and establishing an affirmative procurement program for procurement of recovered materials identified in the EPA guidelines.

3.8.16 Build America, Buy America (BABA) Act: The Grantee must comply with the requirements of the Build America, Buy America (BABA) Act, 41 USC 8301 note, and all applicable rules and notices, as may be amended, if applicable to the Grantee’s infrastructure project. Pursuant to HUD’s Notice, “Public Interest Phased Implementation Waiver for FY 2022 and 2023 of Build America, Buy America Provisions as Applied to Recipients of HUD Federal Financial Assistance” (88 FR 17001), any funds obligated by HUD on or after the applicable listed effective dates, are subject to BABA requirements, unless excepted by a waiver.

3.8.17 Violence Against Women Act (VAWA): VAWA provides housing protections for survivors of domestic and dating violence, sexual assault and stalking (‘domestic violence”). VAWA 2022 reauthorizes, amends, and strengthens the VAWA of 1994, as amended (Pub. L. 103-322, tit. IV, sec. 40001-40703; 34 U.S.C. 12291 et seq.) HUD’s implementing regulations for VAWA’S protections, rights, and responsibilities are codified in 24 CFR part 5, subpart L, and related provisions in HUD’s program regulations (HUD’s VAWA regulations). VAWA 2022 amendments took effect on October 1, 2022 and 2022 VAWA’s reauthorization includes new implementation requirements.

Grantees, subrecipients and developers shall ensure compliance with all requirements of VAWA including but not limited to: (a) Assure domestic violence survivors are not denied assistance as an applicant, or evicted, or have assistance terminated as a tenant

19 because applicant or tenant is or has been a victim of domestic violence; (b) Implement an emergency transfer plan allowing domestic violence survivor to move to another safe and available unit; (c) Provide protections against denial, terminations, and evictions that directly result from being a victim of domestic violence; (d) Implement a low barrier certification process and allow self-certification of domestic violence.

20 Name of Contractor:
*By:
____________________________________________
_
Signature
____________________________________________
_
Name and Title
NOTE: SIGNATURES OF CORPORATE OFFICIALS MUST BE NOTARIZED. ATTACH CERTIFICATE OF NOTARY ACKNOWLEGMENT.

OWNER: CITY OF NORCO, a municipal corporation
*By:
________________________________________________
Kevin Bash, Mayor
ATTEST:
________________________________________________
Dana Roa, CMC City Clerk
APPROVED AS TO FORM:
________________________________________________
Harper & Burns, LLP
City Attorney

21 EXHIBIT A

PIKES PEAK PARK ADA SYNTHETIC POURED-IN-PLACE SURFACE PROJECT

SCOPE OF WORK
The work to be done consists of furnishing all materials, equipment, tools, labor, and incidentals as required by the Plans, Specifications, and Contract Documents for the above stated project. The general items of work to be done hereunder consist of the demolition and removal of the existing playground, demolition and removal of the existing wood fiber chips, demolition and removal of the existing subbase and concrete ramps, relocation of drainage as needed, inspection of drainage and repairs as needed to ensure proper drainage, installation of playground subbase, installation of pour-inplace synthetic surfacing for the playground areas at Pikes Peak Park located at 97 Sixth Street, Norco, CA 92860 as described in the Specifications to the satisfaction and acceptance of the Facilities and Maintenance Director.

22 EXHIBIT A (CONTINUED)

SYNTHETIC POURED-IN-PLACE SURFACE DESIGN

City of Norco
Bid Results for Project PIKES PEAK PARK ADA SYNTHETIC POURED-IN-PLACE SURFACING PROJECT (CDBG Funded) (4407.8) Issued on 07/29/2024
Bid Due on August 29, 2024 10:00 AM (PDT)
Line Totals (Unit Price * Quantity)
Item No. Description Unit of
Measure Quantity
Pacific Tide
Construction - Unit
Price
Pacific Tide
Construction - Line
Total
Cinbad Industry Inc -
Unit Price
Cinbad Industry Inc -
Line Total

DIAMOND

CONSTRUCTION &
DESIGN - Unit Price

DIAMOND

CONSTRUCTION &
DESIGN - Line Total
Asad Holdings LLC
DBA OrangeBlue -
Unit Price
Asad Holdings LLC
DBA OrangeBlue -
Line Total
1 Mobilization & NPDES/BMPs LS 1 $13,437.09 $13,437.09 $14,000.00 $14,000.00 $29,800.00 $29,800.00 $30,000.00 $30,000.00 2 Provide and Install Project Sign and
post for Community Development
Block Grant Projects. Exhibit B-3 of
Special Federal Provisions EA 1 $8,958.06 $8,958.06 $15,000.00 $15,000.00 $26,000.00 $26,000.00 $2,500.00 $2,500.00 3 Secured Construction Fencing with
Privacy Screen for the Perimeter of
Both Playground Areas for the
Duration of Project LS 1 $13,437.09 $13,437.09 $12,000.00 $12,000.00 $16,000.00 $16,000.00 $9,000.00 $9,000.00 4 Remove and Dispose of Existing Fibar
Woodchips as shown Exhibit A. LS 1 $22,395.16 $22,395.16 $20,000.00 $20,000.00 $76,500.00 $76,500.00 $80,000.00 $80,000.00 5 Remove and Dispose of Existing
Concrete Ramps EA 2 $8,958.06 $17,916.12 $2,200.00 $4,400.00 $1,500.00 $3,000.00 $1,500.00 $3,000.00 6 Remove and Dispose of the Existing
Playground Structures shown in LS 1 $17,916.12 $17,916.12 $22,000.00 $22,000.00 $35,000.00 $35,000.00 $20,000.00 $20,000.00 7 Remove and Dispose of the Existing
Subbase Materials shown in Exhibit A. LS 1 $17,916.12 $17,916.12 $30,000.00 $30,000.00 $32,000.00 $32,000.00 $35,000.00 $35,000.00 8 Adjust and Clear Existing Drainage
Inlets for Both Playground Areas As
Required by the Parks LS 1 $8,958.06 $8,958.06 $5,000.00 $5,000.00 $7,000.00 $7,000.00 $5,000.00 $5,000.00 9 Installation of Subbase as per the
FlexGround Standard or Approved LS 1 $17,916.12 $17,916.12 $30,000.00 $30,000.00 $45,250.00 $45,250.00 $45,000.00 $45,000.00 10 Surfacing as per the FlexGround
Standard or Approved Equal.

Playground PIP Design and SF color
quantities shown in Exhibit B LS 1 $291,137.03 $291,137.03 $305,426.00 $305,426.00 $351,720.00 $351,720.00 $400,000.00 $400,000.00 11 Five (5) Year Warranty LS 1 $4,479.06 $4,479.06 $0.00 $0.00 $0.00 $0.00 $5,000.00 $5,000.00 12 Administration and Completion of a
Demolition Deposit/ Disposal of All
Materials with Documentation LS 1 $13,437.09 $13,437.09 $2,000.00 $2,000.00 $3,500.00 $3,500.00 $5,000.00 $5,000.00 Subtotal $447,903.12 $459,826.00 $625,770.00 $639,500.00 Total $447,903.12 $459,826.00 $625,770.00 $639,500.00

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City Council

STAFF REPORT
Date: September 18, 2024 Agenda Item:

3.F.

To: Honorable Mayor and City Council Members
From: Amanda Hamilton, Facilities and Maintenance
Director
Prepared By: Amanda Hamilton, Facilities and Maintenance Director
Department: Facilities and Maintenance
SUBJECT:

Accept Bids, Reject Bid Protest, Approve Project Plans, and Award of Contract for the Moreno Arena Bleacher Support Pad Replacement Project
RECOMMENDATION:

Accept bids, reject bid protest, approve project plans, and award the contract to Metrocell Construction, Inc. for the Moreno Arena Bleacher Support Pad Replacement Project in the amount of $265,900; authorize the Interim City Manager to approve contract change orders up to 10% of the original contract.

SUMMARY:

The Moreno Arena Bleacher Support Pad Project is an essential part of the larger Moreno Bleacher Replacement Project, which has been approved as a Capital Improvement Project (CIP) with a budget of $1,562,000. On April 17, 2024, the City Council awarded a contract for the procurement and installation of a StrudiSteel Bleacher System. This contract with Metrocell Construction Inc. focuses on the necessary civil improvements to support the new bleacher system, ensuring that the new bleacher system investment is protected and maintained.

BACKGROUND:

Over the past two decades, the bleacher system at Moreno Arena has suffered significant deterioration due to environmental factors. Problems include inadequate drainage, with the current bleacher slab lacking drainage and the necessary slope for effective water runoff. Additionally, there is no protective barrier to prevent arena footing, water, and debris from seeping beneath the bleacher system. The accumulation of moisture from various sources, such as arena footing, water truck usage, rain, and power washing has necessitated frequent temporary repairs to keep the bleachers

operational in recent rodeo seasons. After a thorough assessment, structural engineers recommended a complete replacement of the bleacher system.

To safeguard the City's investment in new bleachers, staff engaged RKA Consultants to design essential civil improvements for the project. The Moreno Arena Bleacher Support Pad Project will involve removing the existing reinforced concrete pad, grading the area, constructing a new 5-inch reinforced concrete pad with a barrier wall, and installing a trench drain and storm drain to improve drainage and prevent future issues.

The project schedule is as follows:

Demolition of Existing Bleachers: 09/23/24 - 10/23/24
Installation of Civil Improvements: 11/01/24 - 12/15/24 Delivery of Bleacher Materials and Installation: 01/06/25 - 03/27/25 On July 10, 2024, staff issued a Notice Inviting Bids for the Moreno Arena Bleacher Support Pad Project. By August 12, 2024, 11 bids had been received, ranging from $265,900 to $544,000. However, on August 22, 2024, the City received a bid protest from the second lowest bidder, Hamel Concrete Inc.

Hamel Concrete Inc. formally protested the bid submitted by Metrocell Construction Inc., raising several concerns. The protest contends that Metrocell did not provide the required three references, offering only two, which raises questions about their job experience and could potentially give them an unfair advantage. Additionally, Hamel Concrete Inc. questioned whether Metrocell’s bid documents were properly stamped and sealed, which might have granted them extra time not available to other bidders.

The protest also noted that Metrocell’s bid lacked written descriptions of unit prices in words, as specified, and did not include the names and titles of the principals, as required on page P-13 of the bid documents.

Staff has collaborated closely with the City Attorney to review and provide all documentation related to the bidding process, including the bid documents from Metrocell Construction Inc. The City Attorney has provided his analysis of the Hamel Concrete Inc. Bid Protest:

It is within this framework that we analyze Hamel’s four bid protests:

1.Hamel’s claim that Metrocell Construction, Inc. failed to provide three references on P-6 of the bid documents.

The bid documents called for Metrocell to submit three references and Metrocell failed to do so. This bid irregularity is not a “mistake” that would allow Metrocell to withdraw its bid without forfeiting its bid bond. That is because it does not prevent Metrocell from being bound by its bid and did not constitute a “mistake” under PCC 5103 because failing to submit a third reference did not make Metrocell’s bid materially different than Metrocell intended it to be. (PCC 5103(c).) Thus, this irregularity can be waived.

2. Based on the electronic file provided by the City of Norco, it was undeterminable if Metrocell Construction, Inc. bid documents were stamped and sealed.

On page p-7 of the Bid Bond there is no seal. They only listed American Contractors Indemnity. Note that Hamel’s bid bond also does not have a seal.

Though there is no seal, a seal is only necessary to prove the identity of the person signing. However, identity can be proven in other ways (handwriting sample, witness, etc). Failing to seal the bid bond does not constitute a “mistake” that would have allowed Metrocell to withdraw its bid. This irregularity can be waived.

3. Metrocell Construction, Inc. failed to provide the description of items with unit price written in words on P-10 and P-11 of the bid documents.

The Instructions to Bidders provide the following:

PROPOSAL BID SHEET
Bidders shall fill out the unit prices for each and all of the items set forth on the online bid item sheet (excludes unit prices in words). No aggregate bids will be considered.

Bidders shall also submit a separate bid sheet, provided herein, and set forth for each item of work, in clearly legible words and figures, a unit item price and a total for the item in the respective spaces provided for this purpose. In case of discrepancy between words and figures, the words shall govern. The quantities listed in the Bid sheets are supplied to give an indication of the general scope of work, but the accuracy of figures is not guaranteed and the Bidder shall make his own estimates from the drawings. In case of a variation between the unit price and the totals shown by the Bidder, the unit price will be considered to be the bid.

Thus, there is a requirement for bidders to set out “in clearly legible words and figures, a unit item price and a total” for bid items. However, failure to follow this requirement does not render a bid fatally non-responsive. As the remainder of the paragraph discusses, this requirement is to prevent ambiguity regarding the amounts bid on items (usually resulting from poor penmanship). It is clear from the face of Metrocell’s bid what amounts where bid for each item because the penmanship is distinct and clear and because the math works for those items that have a quantity of more than 1. This irregularity is not one where Metrocell could withdraw its bid and avoid forfeiture of its bid bond and, therefore, this irregularity can be waived.

4. Metrocell Construction, Inc. failed to comply with P-13 of the bid documents.

Metrocell did not submit the proposal with the names, titles, hands, and seals of all forenamed principals. It appears that James Culwell (President) and Christine Culwell (Secretary ) should have signed the document on page P-13 and the notary public should have also been listed.

The signatures on P-1 and P-12 require performance of the contract. P-13 adds nothing that P-1 and P-12 do not already require the bidder to complete. It is true that the signatures should have been sealed or notarized, but for the reasons stated in “2” above, the seal / notary irregularity can be waived. This 4th irregularity can be waived.

Conclusion

The City may waive all four bid irregularities. Though the City may waive the irregularities, it is not required to do so. Metrocell’s bid did contain irregularities in that it did not strictly comply with the bid specifications. Just because the City has discretion to waive said irregularities, does not mean the City is required to. The City can waive the irregularities and accept Metrocell’s bid or it can find Metrocell’s bid non-responsive and award the contract to the next highest bidder.

Based on the bid protest analysis, it has been determined that public bidding laws require public works projects to be awarded to the lowest responsible and responsive bidder. Metrocell Construction Inc., being the lowest bidder, complies with these regulations. Despite Hamel's concerns about minor bid irregularities, these issues do not impact Metrocell's adherence to project specifications. Additionally, the second lowest bidder also had irregularities, such as improperly sealed bid documents. Since Metrocell's bid did not confer an unfair advantage and the irregularities were comparable, staff is reccomending that the project will be awarded to Metrocell Construction Inc.

Metrocell Construction Inc. holds a valid Class A General Engineering Contractor License, affirming their credentials. City staff have contacted the contractor to secure an additional reference and to verify unit pricing for greater clarity on the bid item amounts; the updated bid proposal is attached.

Staff reached out to Metrocell's references, who all spoke highly of the contractor's professionalism, noting their ease of collaboration, absence of change orders, and their intention to engage Metrocell for future projects.

Metrocell offers a comprehensive range of services, including site preparation, foundation installation, masonry, and electrical work. Their extensive experience and proper licensing make them well-suited for the Moreno Arena Bleacher Support Pad Replacement Project. It is recommended that the City Council award the contract to Metrocell Construction Inc. for $265,900 to ensure timely and efficient completion of the project.

Furthermore, Government Code Section 830.6 stipulates that neither a public entity nor its employees bear liability for injuries arising from the approved plan or design of public property. This immunity applies when the plan or design has received prior approval from the relevant legislative or the discretionary authority or conforms to established standards. In light of this legal framework, it is recommended that the City Council approve the project plans for the Moreno Arena Bleacher Support Pad Replacement Project.

FISCAL IMPACT:

The Moreno Arena Bleacher Repair Project (Project No. 54111.9) was approved as a Capital Improvement Project (CIP) for Fiscal Year 2023-24. Funds were carried over to FY 2024-25 for total project amount of $1,562,000 from Measure R Fund 132 (Account No. 132.940.43115). The available funds in this account are fully adequate to cover the cost of the Moreno Arena Bleacher Support Pad Replacement Project.

RELATIONSHIP TO STRATEGIC PLAN:

This item closely aligns with Strategic Plan No. 5. Infrastructure and Asset Management: Ensure timely preservation, replacement, improvement and acquisition of infrastructure and capital assets.

REVIEWED AND APPROVED BY:

Approved by: Lisette Free, Interim City Manager
Approved as to Form: Harper and Burns, LLP, City Attorney ATTACHMENT(S):

Contract_Moreno Arena Bleacher Support Pad Replacement
Original Bid Proposal_Metrocell Construction
Updated Bid Proposal_Metrocell Construction
Metrocell Construction Bid Bond
Project Plans_Moreno Arena Bleacher Support Pad Replacement Bid Protest - Moreno Arena Bleacher Support Pad Replacement Bid Results -Moreno Arena Bleacher Support Pad Replacement

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CONTRACT AGREEMENT

CITY OF NORCO

MORENO ARENA BLEACHER SUPPORT PAD REPLACEMENT PROJECT

1. Parties and Date.

This Agreement is made and entered into this 18th day of September 2024 by and between the City of Norco, a municipal corporation of the State of California, located at 2870 Clark Avenue, Norco, California 92860, County of Riverside, State of California, (hereinafter referred to as “City”) and Metrocell Construction, Inc. a corporation with its principal place of business at 1166 Mildred Street, Ontario, California 91761 (hereinafter referred to as “Contractor”). City and Contractor are sometimes individually referred to as “Party” and collectively as “Parties” in this Agreement.

2. Recitals.

2.1 Contractor.

Contractor desires to perform and assume responsibility for the provisions of the “MORENO ARENA BLEACHER SUPPORT PAD REPLACEMENT” on the terms and conditions set forth in this Agreement. Contractor represents that it is experienced in constructing civil improvements for public clients, that it and its employees or subcontractors have all necessary licenses and permits to perform the Services in the State of California, and that is familiar with the plans of the City.

2.2 Project.

The City desires to engage the Contractor to render such services for the “MORENO ARENA BLEACHER SUPPORT PAD REPLACEMENT” (“Project”) as set forth in this Agreement.

3. Terms.

3.1 Scope of Services and Term.

3.1.1 General Scope of Services. Contractor promises and agrees to furnish to the City all labor, materials, tools, equipment, services, and incidental and customary work necessary to construct the improvements outlined by the “MORENO ARENA BLEACHER SUPPORT PAD REPLACEMENT". The Project is more particularly described in Exhibit A attached hereto and incorporated herein by reference. The Project shall be subject to, and performed in accordance with this Agreement, the exhibits attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations.

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3.1.2 Term. The terms of this Agreement shall begin at the Notice to Proceed and shall extend 30 working days. Contractor shall complete the Services within the term of this Agreement and shall meet any other established schedules and deadlines.

3.2 Responsibilities of Contractor.

3.2.1 Control and Payment of Subordinates; Independent Contractor.

The Project shall be constructed by Contractor or under its supervision. Contractor will determine the means, methods and details of constructing the Project subject to the requirements of this Agreement. City retains Contractor on an independent contractor basis and not as an employee. Any additional personnel constructing the Project under this Agreement on behalf of Contractor shall also not be employees of City and shall at all times be under Contractor’s exclusive direction and control. Contractor shall pay all wages, salaries, and other amounts due such personnel in connection with the construction of the Project under this Agreement and as required by law. Contractor shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers’ compensation insurance.

3.2.2 Schedule of Services. Contractor shall construct the Project expeditiously, within the term of this Agreement, and in accordance with the Project timeframe set forth herein. Contractor represents that it has the professional and technical personnel required to construct the Project in conformance with such conditions. In order to facilitate Contractor’s conformance with the Project timeframe, City shall respond to Contractor’s Requests for Information in a timely manner. Upon request of City, Contractor shall provide a more detailed schedule of anticipated performance to meet the Project timeframe.

3.2.3 Conformance to Applicable Requirements. All work prepared by Contractor shall be subject to the approval of City.

3.2.4 City’s Representative. The City hereby designates the Director of Facilities and Maintenance, or her designee, to act as its representative for the performance of this Agreement (“City’s Representative”). City’s Representative shall have the power to act on behalf of the City for all purposes under this Agreement.

Contractor shall not accept direction or orders from any person other than the City’s Representative or his or her designee.

3.2.5 Contractor’s Representative. Contractor hereby designates James Culwell, President, or his designee, to act as its representative for the performance of this Agreement (“Contractor’s Representative”). Contractor’s Representative shall have full authority to represent and act on behalf of the Contractor for all purposes under this Agreement. The Contractor’s Representative shall supervise and direct the Project, using his best skill and attention, and shall be responsible for all means, methods,

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techniques, sequences and procedures and for the satisfactory coordination of all portions of the Project under this Agreement.

3.2.6 Coordination of Project. Contractor agrees to work closely with City staff in the construction of the Project and shall be available to City’s staff, consultants and other staff at all reasonable times.

3.2.7 Standard of Care; Performance of Employees. Contractor shall construct the Project under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Contractor represents and maintains that it is skilled in the professional calling necessary to construct the Project. Contractor warrants that all employees and subcontractors shall have sufficient skill and experience to construct the Project. Finally, Contractor represents that it, its employees and subcontractors have all licenses, permits, qualifications and approvals of whatever nature that are legally required to construct the Project, including a City Business License, and that such licenses and approvals shall be maintained throughout the term of this Agreement. As provided for in the indemnification provisions of this Agreement, Contractor shall perform, at its own cost and expense and without reimbursement from the City, any services necessary to correct errors or omissions which are caused by the Contractor’s failure to comply with the standard of care provided for herein. Any employee of the Contractor or its sub-contractors who is determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat to the safety of persons or property, or any employee who fails or refuses to construct the Project in a manner acceptable to the City, shall be promptly removed from the Project by the Contractor and shall not be re-employed to perform any work on the Project.

3.2.7.1 Period of Performance and Liquidated Damages.

Contractor shall perform and complete the Project under this Agreement within the term set forth in Section 3.1.2 above (“Term”). Contractor shall construct the Project in strict accordance with any timeframe provided herein, or which may be provided separately in writing to the Contractor. Contractor agrees that if the Project is not completed within the aforementioned Term and/or pursuant to any such completion schedule or Project milestones developed pursuant to provisions of this Agreement, it is understood, acknowledged and agreed that the City will suffer damage. Pursuant to Government Code Section 53069.85, Contractor shall pay to the City as fixed and liquidated damages, and not as a penalty, the sum of $500.00 per working day:

3.2.8 Laws and Regulations. Contractor shall keep itself fully informed of and in compliance with all local, state and federal laws, rules and regulations in any manner affecting the performance of the Project, including all Cal/OSHA requirements, and shall give all notices required by law. Contractor shall be liable for all violations of such laws and regulations in connection with the Project. If the Contractor performs any work knowing it to be contrary to such laws, rules and regulations and without giving written notice to the City, Contractor shall be solely responsible for all costs arising therefrom. Contractor shall defend, indemnify and hold City, its officials, directors,

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officers, employees and agents free and harmless, pursuant to the indemnification provisions of this Agreement, from any claim or liability arising out of any failure or alleged failure to comply with such laws, rules or regulations.

3.2.9 Insurance.

3.2.9.1 Time for Compliance. Contractor shall not commence work under this Agreement until it has provided evidence satisfactory to the City that it has secured all insurance required under this section. In addition, Contractor shall not allow any subcontractor to commence work on any subcontract until it has provided evidence satisfactory to the City that the subcontractor has secured all insurance required under this section.

3.2.9.2 Minimum Requirements. Throughout the life of this Contract, Contractor shall pay for and maintain in full force and effect all policies of insurance required hereunder with an insurance company(ies) either (i) admitted by the California Insurance Commissioner to do business in the State of California and rated not less than “A- VII” in Best’s Insurance Rating Guide, or (ii) as may be authorized in writing by City Manager or his/her designee at any time and in his/her sole discretion.

The following policies of insurance are required:
(i) COMMERCIAL GENERAL LIABILITY insurance which shall
be at least as broad as the most current version of Insurance Services Office (ISO) Commercial General Liability Coverage Form CG 00 01 and include insurance for “bodily injury,” “property damage” and “personal and advertising injury” with coverage for premises and operations (including the use of owned and non-owned equipment), products and completed operations, and contractual liability (including, without limitation, indemnity obligations under the Contract) with limits of liability of not less than the following:
$2,000,000 per occurrence for bodily injury and property damage $1,000,000 per occurrence for personal and advertising injury $2,000,000 aggregate for products and completed operations $4,000,000 general aggregate
(ii) COMMERCIAL AUTOMOBILE LIABILITY insurance which
shall be at least as broad as the most current version of Insurance Service Office (ISO) Business Auto Coverage Form CA 00 01, and include coverage for all owned, hired, and non owned automobiles or other licensed vehicles (Code 1 Any Auto) with limits of liability of not less than $1,000,000 per accident for bodily injury and property damage. (iii) WORKERS’ COMPENSATION insurance as required
under the California Labor Code.