Norco City Council
February 5, 2025

CITY OF NORCO

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCES (CONTINUED)

NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2024
(115)

REVENUES
Taxes
Assessments
Development Fees
Intergovernmental
Charges for Services
Investment Earnings (Loss)
Other
Total Revenues

EXPENDITURES
Current:

General Government
Public Safety
Streets and Highways
Community and Economic Development
Culture and Leisure
Capital Outlay:

Other
Total Expenditures

EXCESS (DEFICIENCY) OF REVENUES

OVER (UNDER) EXPENDITURES

OTHER FINANCING SOURCES (USES)
Transfers In
Transfers Out
Total Other Financing Sources (Uses)

NET CHANGE IN FUND BALANCES
Fund Balances (Deficits) - Beginning of Year,
as Previously Presented
Change within financial reporting entity
(Nonmajor to Major Fund)
Fund Balances (Deficits) - Beginning of Year,
as Adjusted

FUND BALANCES (DEFICITS) - END

OF YEAR
Landscape Landscape Landscape
Maintenance Maintenance Maintenance CalHome Total Special District #3 District #4 District #5 Grant Revenue Funds $ - - $ - $ - $ 1,122,687 $
517,677 102,007 67,409 - 882,166
- - - - -
- - - 60,000 2,807,066
- - - - 2,895
14,860 (425) 5,485 8,159 96,485
- - - - -
532,537 101,582 72,894 68,159 4,911,299
- - - - 32,755
- - - - 194,026
494,025 98,690 92,340 - 3,083,738
- - - - 36,228
- - - - 1,079,902
- - - - 63,119
494,025 98,690 92,340 - 4,489,768
38,512 2,892 (19,446) 68,159 421,531
- - - - 94,000
- - - - (168,960)
- - - - (74,960)
38,512 2,892 (19,446) 68,159 346,571
310,340 2,266 104,585 124,422 2,021,325
- - - - -
310,340 2,266 104,585 124,422 2,021,325 $ 348,852 5,158 $ 85,139 $ 192,581 $ 2,367,896 $ Special Revenue Funds

CITY OF NORCO

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCES (CONTINUED)

NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2024
(116)

REVENUES
Taxes
Assessments
Development Fees
Intergovernmental
Charges for Services
Investment Earnings (Loss)
Other
Total Revenues

EXPENDITURES
Current:

General Government
Public Safety
Streets and Highways
Community and Economic Development
Culture and Leisure
Capital Outlay:

Other
Total Expenditures

EXCESS (DEFICIENCY) OF REVENUES

OVER (UNDER) EXPENDITURES

OTHER FINANCING SOURCES (USES)
Transfers In
Transfers Out
Total Other Financing Sources (Uses)

NET CHANGE IN FUND BALANCES
Fund Balances (Deficits) - Beginning of Year,
as Previously Presented
Change within financial reporting entity
(Nonmajor to Major Fund)
Fund Balances (Deficits) - Beginning of Year,
as Adjusted

FUND BALANCES (DEFICITS) - END

OF YEAR
Formerly Non- General
Major Fund Government Fire Trails Park
Storm Drain Improvement Improvement Improvement Improvement $ - - $ - $ - $ - $
- - - - -
13,731 - 13,185 4,796 130,419
- - - - -
- - - - -
25,870 - 35,177 12,308 52,233
- - - - -
39,601 - 48,362 17,104 182,652
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
124,121 - 45,765 33,020 -
124,121 - 45,765 33,020 -
(84,520) - 2,597 (15,916) 182,652
- - - - -
- - - - -
- - - - -
(84,520) - 2,597 (15,916) 182,652
535,969 985,221 682,008 231,765 915,232
- (985,221) - - -
535,969 - 682,008 231,765 915,232 $ 451,449 - $ 684,605 $ 215,849 $ 1,097,884 $ Capital Projects Funds

CITY OF NORCO

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCES (CONTINUED)

NONMAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2024
(117)

REVENUES
Taxes
Assessments
Development Fees
Intergovernmental
Charges for Services
Investment Earnings (Loss)
Other
Total Revenues

EXPENDITURES
Current:

General Government
Public Safety
Streets and Highways
Community and Economic Development
Culture and Leisure
Capital Outlay:

Other
Total Expenditures

EXCESS (DEFICIENCY) OF REVENUES

OVER (UNDER) EXPENDITURES

OTHER FINANCING SOURCES (USES)
Transfers In
Transfers Out
Total Other Financing Sources (Uses)

NET CHANGE IN FUND BALANCES
Fund Balances (Deficits) - Beginning of Year,
as Previously Presented
Change within financial reporting entity
(Nonmajor to Major Fund)
Fund Balances (Deficits) - Beginning of Year,
as Adjusted

FUND BALANCES (DEFICITS) - END

OF YEAR
Total
Nonmajor
Public Street Animal Facility Total Capital Governmental Meeting Improvement Control Improvement Projects Funds Funds $ - - $ - $ - $ - $ 1,122,687 $
- - - - - 882,166
258,255 36,196 3,092 - 459,674 459,674
- - - - - 2,807,066
- - - - - 2,895
34,681 10,731 2,215 4,226 177,441 273,926
621,216 - - - 621,216 621,216
914,152 46,927 5,307 4,226 1,258,331 6,169,630
- - - - - 32,755
- - - - - 194,026
- - - - - 3,083,738
- - - - - 36,228
- - - - - 1,079,902
163,955 - 13,521 - 380,382 443,501
163,955 - 13,521 - 380,382 4,870,150
750,197 46,927 (8,214) 4,226 877,949 1,299,480
- - - - - 94,000
- - - - - (168,960)
- - - - - (74,960)
750,197 46,927 (8,214) 4,226 877,949 1,224,520
180,934 186,475 42,104 127,072 3,886,780 5,908,105
- - - - (985,221) (985,221)
180,934 186,475 42,104 127,072 2,901,559 4,922,884 $ 931,131 233,402 $ 33,890 $ 131,298 $ 3,779,508 $ 6,147,404 $ Capital Projects Funds

(118)

THIS PAGE INTENTIONALLY LEFT BLANK

CITY OF NORCO

NONMAJOR SCHEDULES OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
YEAR ENDED JUNE 30, 2024
(119)
The budgetary comparison statement is presented as required supplementary information for the General Fund as provided for by GASB Statement No. 34. The City did not adopt a budget for the Housing Successor Agency Low- and Moderate-Income Housing Special Revenue Fund.

The schedules for the remaining funds are presented to aid in additional analysis and are not a required part of the financial statements.

The City did not adopt a budget for the CalHome Grant Special Revenue Fund and Facility Improvement Capital Projects Fund.

CITY OF NORCO

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

MISCELLANEOUS GRANTS SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2024
(120)
Budget Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Intergovernmental 2,121,332 $ 2,191,000 $ 1,032,661 $ (1,158,339) $ Charges for Services 1,500 1,500 2,895 1,395 Total Revenues 2,121,332 2,192,500 1,035,556 (1,156,944) EXPENDITURES Current:

General Government 51,000 51,000 32,755 18,245 Public Safety 9,600 9,600 7,867 1,733 Community and Economic Development - - 36,228 (36,228) Culture and Leisure 2,050,839 2,050,839 1,067,402 983,437 Total Expenditures 2,060,439 2,111,439 1,144,252 967,187 NET CHANGE IN FUND BALANCE 81,061 60,893 (134,545) (215,606) Fund Balance - Beginning of Year 25,849 25,849 25,849 - FUND BALANCE (DEFICIT) - END OF YEAR $ 106,910 86,742 $ (108,696) $ (215,606) $

CITY OF NORCO

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

COMMUNITY DEVELOPMENT BLOCK GRANT SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2024
(121)
Budget Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Intergovernmental 12,500 $ 12,500 $ 12,500 $ - $
Total Revenues 12,500 12,500 12,500 - EXPENDITURES
Culture and Leisure 12,500 12,500 12,500 - Total Expenditures 12,500 12,500 12,500 - NET CHANGE IN FUND BALANCE - - - - Fund Balance - Beginning of Year - - - - FUND BALANCE - END OF YEAR $ - - $ - $ - $

CITY OF NORCO

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

GAS TAX SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2024
(122)
Budget Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Intergovernmental 729,200 $ 730,503 $ 743,244 $ 12,741 $ Investment Earnings (Loss) 200 200 2,364 2,164 Total Revenues 729,400 730,703 745,608 14,905 EXPENDITURES Current:

Streets and Highways 946,900 946,900 790,419 156,481 Total Expenditures 946,900 946,900 790,419 156,481 NET CHANGE IN FUND BALANCE (216,197) (217,500) (44,811) 171,386 Fund Balance - Beginning of Year 93,279 93,279 93,279 - FUND BALANCE (DEFICIT) - END OF YEAR $ (122,918) (124,221) $ 48,468 $ 171,386 $

CITY OF NORCO

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
SB1 ROAD MAINTENANCE REHABILITATION SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2024
(123)
Budget Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Intergovernmental 645,990 $ 638,261 $ 738,824 $ 100,563 $ Investment Earnings (Loss) 14,746 14,746 13,033 (1,713) Total Revenues 660,736 653,007 751,857 98,850 EXPENDITURES Current:

Streets and Highways 1,275,000 1,273,209 1,165,105 108,104 Total Expenditures 1,275,000 1,273,209 1,165,105 108,104 NET CHANGE IN FUND BALANCE (620,202) (614,264) (413,248) 206,954 Fund Balance - Beginning of Year 723,144 723,144 723,144 - FUND BALANCE - END OF YEAR $ 102,942 108,880 $ 309,896 $ 206,954 $

CITY OF NORCO

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

MEASURE A SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2024
(124)
Budget Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Taxes 985,000 $ 985,000 $ 998,841 $ 13,841 $
Investment Earnings 10,215 10,215 49,463 39,248 Total Revenues 995,215 995,215 1,048,304 53,089

EXPENDITURES
Capital Outlay:

Other 100,000 114,590 63,119 51,471 Total Expenditures 100,000 114,590 63,119 51,471 NET CHANGE IN FUND BALANCE 880,625 895,215 985,185 104,560 Fund Balance - Beginning of Year 490,372 490,372 490,372 - FUND BALANCE - END OF YEAR $ 1,370,997 1,385,587 $ 1,475,557 $ 104,560 $

CITY OF NORCO

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

NPDES SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2024
(125)
Budget Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Taxes 133,000 $ 133,000 $ 123,846 $ (9,154) $
Total Revenues 133,000 133,000 123,846 (9,154) EXPENDITURES Current:

Streets and Highways 253,300 253,300 242,017 11,283 Total Expenditures 253,300 253,300 242,017 11,283

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (120,300) (120,300) (118,171) 2,129 OTHER FINANCING SOURCES Transfers In - - 94,000 94,000 NET CHANGE IN FUND BALANCE (120,300) (120,300) (24,171) 96,129 Fund Balance - Beginning of Year 16,970 16,970 16,970 - FUND BALANCE (DEFICIT) - END OF YEAR $ (103,330) (103,330) $ (7,201) $ 96,129 $

CITY OF NORCO

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

AIR QUALITY IMPROVEMENT TRUST SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2024
(126)
Budget Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Intergovernmental 20,000 $ 20,000 $ 33,678 $ 13,678 $
Investment Earnings - - 5,258 5,258 Total Revenues 20,000 20,000 38,936 18,936 OTHER FINANCING USES Transfers Out (1,500) (1,500) (143,111) (141,611) Total Other Financing Uses (1,500) (1,500) (143,111) (141,611) NET CHANGE IN FUND BALANCE 18,500 18,500 (104,175) (122,675) Fund Balance - Beginning of Year 140,452 140,452 140,452 - FUND BALANCE (DEFICIT) - END OF YEAR $ 158,952 158,952 $ 36,277 $ (122,675) $

CITY OF NORCO

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

SUPPLEMENTAL LAW ENFORCEMENT BLOCK GRANT SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2024
(127)
Budget Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Intergovernmental 100,000 $ 186,159 $ 186,159 $ - $
Total Revenues 100,000 186,159 186,159 - EXPENDITURES
Current:

Public Safety 100,000 186,159 186,159 - Total Expenditures 100,000 186,159 186,159 - NET CHANGE IN FUND BALANCE - - - - Fund Balance - Beginning of Year - - - - FUND BALANCE - END OF YEAR $ - - $ - $ - $

CITY OF NORCO

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
LANDSCAPE MAINTENANCE DISTRICT #1 SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2024
(128)
Budget Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Assessments 12,204 $ 12,204 $ 11,839 $ (365) $
Total Revenues 12,204 12,204 11,452 (752) EXPENDITURES
Current:

Streets and Highways 14,077 14,727 14,025 702 Total Expenditures 14,077 14,727 14,025 702 NET CHANGE IN FUND BALANCE (2,523) (1,873) (2,573) (50) Fund Balance (Deficit) - Beginning of Year (3,955) (3,955) (3,955) - FUND BALANCE (DEFICIT) - END OF YEAR $ (6,478) (5,828) $ (6,528) $ (50) $

CITY OF NORCO

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
LANDSCAPE MAINTENANCE DISTRICT #2 SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2024
(129)
Budget Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Assessments 183,012 $ 183,012 $ 183,234 $ 222 $
Investment Loss - - (1,325) (1,325) Total Revenues 183,012 183,012 181,909 (1,103)

EXPENDITURES
Current:

Streets and Highways 167,464 167,464 187,117 (19,653) Total Expenditures 167,464 167,464 187,117 (19,653) NET CHANGE IN FUND BALANCE 15,548 15,548 (5,208) (20,756) Fund Balance (Deficit) - Beginning of Year (6,399) (6,399) (6,399) - FUND BALANCE (DEFICIT) - END OF YEAR $ 9,149 9,149 $ (11,607) $ (20,756) $

CITY OF NORCO

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
LANDSCAPE MAINTENANCE DISTRICT #3 SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2024
(130)
Budget Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Assessments 102,634 $ 102,634 $ 102,007 $ (627) $
Investment Loss - - (425) (425) Total Revenues 102,634 102,634 101,582 (1,052) EXPENDITURES Current:

Streets and Highways 115,970 115,970 98,690 17,280 Total Expenditures 115,970 115,970 98,690 17,280 NET CHANGE IN FUND BALANCE (13,336) (13,336) 2,892 16,228 Fund Balance - Beginning of Year 2,266 2,266 2,266 - FUND BALANCE (DEFICIT) - END OF YEAR $ (11,070) (11,070) $ 5,158 $ 16,228 $

CITY OF NORCO

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
LANDSCAPE MAINTENANCE DISTRICT #4 SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2024
(131)
Budget Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Assessments 516,945 $ 516,945 $ 517,677 $ 732 $
Investment Earnings - - 14,860 14,860 Total Revenues 516,945 516,945 532,537 15,592

EXPENDITURES
Current:

Streets and Highways 496,868 500,516 494,025 6,491 Total Expenditures 496,868 500,516 494,025 6,491 NET CHANGE IN FUND BALANCE 16,429 20,077 38,512 22,083 Fund Balance - Beginning of Year 310,340 310,340 310,340 - FUND BALANCE - END OF YEAR $ 326,769 330,417 $ 348,852 $ 22,083 $

CITY OF NORCO

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
LANDSCAPE MAINTENANCE DISTRICT #5 SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2024
(132)
Budget Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Assessments 68,091 $ 68,091 $ 67,409 $ (682) $
Investment Earnings - - 5,485 5,485 Total Revenues 68,091 68,091 72,894 4,803

EXPENDITURES
Current:

Streets and Highways 85,815 85,815 92,340 (6,525) Total Expenditures 85,815 85,815 92,340 (6,525) NET CHANGE IN FUND BALANCE (17,724) (17,724) (19,446) (1,722) Fund Balance - Beginning of Year 104,585 104,585 104,585 - FUND BALANCE (DEFICIT) - END OF YEAR $ 86,861 86,861 $ 85,139 $ (1,722) $

CITY OF NORCO

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

GENERAL GOVERNMENT IMPROVEMENT CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2024
(133)
Budget Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Development Fees - $ - $ 13,731 $ 13,731 $
Investment Earnings 5,755 5,755 25,870 20,115 Total Revenues 5,755 5,755 39,601 33,846

EXPENDITURES
Capital Outlay:

Other 59,000 125,598 124,121 1,477 Total Expenditures 59,000 125,598 124,121 1,477 NET CHANGE IN FUND BALANCE (119,843) (53,245) (84,520) 35,323 Fund Balance - Beginning of Year 535,969 535,969 535,969 - FUND BALANCE - END OF YEAR $ 416,126 482,724 $ 451,449 $ 35,323 $

CITY OF NORCO

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

FIRE IMPROVEMENT CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2024
(134)
Budget Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Development Fees - $ - $ 13,185 $ 13,185 $
Investment Earnings 13,245 13,245 35,177 21,932 Total Revenues 13,245 13,245 48,362 35,117

EXPENDITURES
Capital Outlay:

Other 2,500 50,554 45,765 4,789 Total Expenditures 2,500 50,554 45,765 4,789 NET CHANGE IN FUND BALANCE (37,309) 10,745 2,597 39,906 Fund Balance - Beginning of Year 682,008 682,008 682,008 - FUND BALANCE - END OF YEAR $ 644,699 692,753 $ 684,605 $ 39,906 $

CITY OF NORCO

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

TRAILS IMPROVEMENT CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2024
(135)
Budget Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Development Fees - $ - $ 4,796 $ 4,796 $
Investment Earnings 4,799 4,799 12,308 7,509 Total Revenues 4,799 4,799 17,104 12,305 EXPENDITURES Capital Outlay: .

Other 37,000 37,000 33,020 3,980 Total Expenditures 37,000 37,000 33,020 3,980 NET CHANGE IN FUND BALANCE (32,201) (32,201) (15,916) 16,285 Fund Balance - Beginning of Year 231,765 231,765 231,765 - FUND BALANCE - END OF YEAR $ 199,564 199,564 $ 215,849 $ 16,285 $

CITY OF NORCO

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

PARK IMPROVEMENT CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2024
(136)
Budget Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Development Fees - $ - $ 130,419 $ 130,419 $
Investment Earnings 15,976 15,976 52,233 36,257 Total Revenues 15,976 15,976 182,652 166,676 NET CHANGE IN FUND BALANCE 15,976 15,976 182,652 166,676 Fund Balance - Beginning of Year 915,232 915,232 915,232 - FUND BALANCE - END OF YEAR $ 931,208 931,208 $ 1,097,884 $ 166,676 $

CITY OF NORCO

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

PUBLIC MEETING CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2024
(137)
Budget Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Development Fees - $ - $ 36,196 $ 36,196 $
Investment Earnings 3,072 3,072 10,731 7,659 Total Revenues 3,072 3,072 46,927 43,855 NET CHANGE IN FUND BALANCE 3,072 3,072 46,927 43,855 Fund Balance - Beginning of Year 186,475 186,475 186,475 - FUND BALANCE - END OF YEAR $ 189,547 189,547 $ 233,402 $ 43,855 $

CITY OF NORCO

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

STREET IMPROVEMENT CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2024
(138)
Budget Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Development Fees - $ - $ 258,255 $ 258,255 $
Investment Earnings 468 468 34,681 34,213 Other Revenue - - 621,216 621,216 Total Revenues 468 468 914,152 913,684

EXPENDITURES
Capital Outlay:

Other - 857,751 163,955 693,796 Total Expenditures - 857,751 163,955 693,796 NET CHANGE IN FUND BALANCE (857,283) 468 750,197 1,607,480 Fund Balance - Beginning of Year 180,934 180,934 180,934 - FUND BALANCE (DEFICIT) - END OF YEAR $ (676,349) 181,402 $ 931,131 $ 1,607,480 $

CITY OF NORCO

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

ANIMAL CONTROL CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2024
(139)
Budget Amounts Actual Variance with
Original Final Amounts Final Budget

REVENUES
Development Fees - $ - $ 3,092 $ 3,092 $
Investment Earnings 845 845 2,215 1,370 Total Revenues 845 845 5,307 4,462

EXPENDITURES
Capital Outlay:

Other - 27,329 13,521 13,808 Total Expenditures - 27,329 13,521 13,808 NET CHANGE IN FUND BALANCE (26,484) 845 (8,214) 18,270 Fund Balance - Beginning of Year 42,104 42,104 42,104 - FUND BALANCE - END OF YEAR $ 15,620 42,949 $ 33,890 $ 18,270 $

(140)

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(141)

INTERNAL SERVICE FUNDS

(142)

THIS PAGE INTENTIONALLY LEFT BLANK

CITY OF NORCO

INTERNAL SERVICE FUNDS DESCRIPTIONS
JUNE 30, 2024
(143)
Internal Service Funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the government and to other government units, on a cost reimbursement basis.

Fleet Management Fund – This fund is used to account for the acquisition, rental, maintenance, and operation of the City’s fleet of vehicles and the rolling stock.

Benefits and Insurance Fund – This fund is used to account for the accumulation and allocation of costs associated with providing certain employee benefits and City-wide insurance coverage.

Information Management Fund – This fund is used to account for the accumulation and allocation of costs associated with electronic data processing.

CITY OF NORCO

COMBINING STATEMENT OF NET POSITION

INTERNAL SERVICE FUNDS
JUNE 30, 2024
(144)
Fleet Benefits and Information
Management Insurance Management Total
ASSETS
Current Assets:

Cash and Investments 4,401,105 $ 787,867 $ 1,317,418 $ 6,506,390 $ Receivables, Net:

Accounts 3,951 - 16,038 19,989
Interest 15,660 1,946 4,739 22,345
Prepaids - - 44,876 44,876
Total Current Assets 4,420,716 789,813 1,383,071 6,593,600 Noncurrent Assets:

Capital Assets:

Vehicles and Equipment 4,721,593 - 152,152 4,873,745 Less: Accumulated Depreciation (2,752,818) - (127,475) (2,880,293) Right-to-Use Lease Equipment - - 207,453 207,453 Less: Accumulated Amortization - - (124,472) (124,472) Subscription Asset - - 605,866 605,866 Less: Accumulated Amortization - - (215,887) (215,887) Intangibles - - 436,609 436,609 Less: Accumulated Amortization - - (436,609) (436,609) Total Noncurrent Assets/ Capital Assets 1,968,775 - 497,637 2,466,412 Total Assets 6,389,491 789,813 1,880,708 9,060,012

LIABILITIES
Current Liabilities:

Accounts Payable and Accrued
Liabilities 115,309 - 30,244 145,553 Compensated Absences - 220,842 - 220,842 Lease Payable - - 42,969 42,969 Subscription Liability - - 109,215 109,215 Claims and Judgements - 482,461 - 482,461 Total Current Liabilities 115,309 703,303 182,428 1,001,040 Noncurrent Liabilities:

Compensated Absences - 662,521 - 662,521 Lease Payable - - 44,720 44,720 Subscription Liability - - 42,912 42,912 Claims and Judgements - 346,842 - 346,842 Total Noncurrent Liabilities - 1,009,363 87,632 1,096,995 Total Liabilities 115,309 1,712,666 270,060 2,098,035

NET POSITION
Net Investment in Capital Assets 1,968,775 - 257,821 2,226,596 Unrestricted 4,305,407 (922,853) 1,352,827 4,735,381 Total Net Position 6,274,182 $ (922,853) $ 1,610,648 $ 6,961,977 $

CITY OF NORCO

COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION

INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2024
(145)
Fleet Benefits and Information
Management Insurance Management Total

OPERATING REVENUES
Sales and Charges for Services 910,461 $ 1,081,198 $ 1,118,158 $ 3,109,817 $ Total Operating Revenues 910,461 1,081,198 1,118,158 3,109,817 OPERATING EXPENSES General and Administrative 469,667 1,198,107 671,390 2,339,164 Depreciation and Amortization 323,799 - 212,019 535,818 Total Operating Expenses 793,466 1,198,107 883,409 2,874,982 OPERATING INCOME (LOSS) (116,909) 116,995 234,749 234,835 NONOPERATING REVENUES Investment Earnings 232,008 22,468 64,018 318,494
Interest and Fiscal Charges - - (11,962) (11,962) Gain on Disposal of Assets (39,026) - - (39,026) Total Nonoperating Revenues 192,982 22,468 52,056 267,506 INCOME (LOSS) BEFORE TRANSFERS (94,441) 309,977 286,805 502,341 TRANSFERS IN 141,611 - - 141,611 CHANGE IN NET POSITION (94,441) 451,588 286,805 643,952 Net Position - Beginning of Year 5,822,594 (828,412) 1,323,843 6,318,025 NET POSITION - END OF YEAR $ (922,853) 6,274,182 $ 1,610,648 $ 6,961,977 $

CITY OF NORCO

COMBINING STATEMENT OF CASH FLOWS

INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2024
(146)
Fleet Benefits and Information
Management Insurance Management Total

CASH FLOWS FROM OPERATING

ACTIVITIES
Cash Received from Interfund
Services Provided 912,130 $ 1,081,198 $ 1,118,158 $ 3,111,486 $ Cash Payments to Suppliers (421,147) (1,299,896) (435,201) (2,156,244) Cash Payments to Employees for Services - (54,498) (253,589) (308,087) Net Cash Provided (Used) by Operating Activities 490,983 (273,196) 429,368 647,155 CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Transfer from Other Funds 141,611 - - 141,611 Net Cash Provided by Noncapital Financing Activities 141,611 - - 141,611 CASH FLOWS FROM CAPITAL AND

RELATED FINANCING ACTIVITIES
Acquisition and Construction of
Capital Assets (898,979) - (6,008) (904,987) Principal Payments - Subscription Liability - - (273,477) (273,477) Principal Payments - Lease - - (41,286) (41,286) Interest and Fiscal Charges - - (11,962) (11,962)
Net Cash Used by Capital and
Related Financing Activities (898,979) - (332,733) (1,231,712) CASH FLOWS FROM INVESTING

ACTIVITIES
Interest Income 240,762 24,143 65,862 330,767 Net Cash Provided by Investing Activities 240,762 24,143 65,862 330,767 NET INCREASE (DECREASE) IN CASH AND INVESTMENTS (249,053) (25,623) 162,497 (112,179) Cash and Investments - Beginning of Year 4,426,728 1,036,920 1,154,921 6,618,569 CASH AND INVESTMENTS - END OF YEAR $ 787,867 4,401,105 $ 1,317,418 $ 6,506,390 $

CITY OF NORCO

COMBINING STATEMENT OF CASH FLOWS

INTERNAL SERVICE FUNDS (CONTINUED)
YEAR ENDED JUNE 30, 2024
(147)
Fleet Benefits and Information
Management Insurance Management Total

RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED (USED)

BY OPERATING ACTIVITIES
Operating Income (Loss) 116,995 $ (116,909) $ 234,749 $ 234,835 $ Adjustments to Reconcile Operating
Income (Loss) to Net Cash Provided
(Used) by Operating Activities:

Depreciation and Amortization 323,799 - 212,019 535,818 Unrealized Loss on Investments (Increase) Decrease in Assets:

Accounts Receivable 1,669 - - 1,669 Prepaids - - 15,032 15,032 Increase (Decrease) in Liabilities:

Accounts Payable and Accrued
Liabilities 48,520 - (32,432) 16,088 Compensated Absences - 2,864 - 2,864 Claims and Judgements - (159,151) - (159,151) Net Cash Provided (Used) by Operating Activities 490,983 $ (273,196) $ 429,368 $ 647,155 $

SUPPLEMENTAL DISCLOSURE OF

NONCASH INVESTING, CAPITAL, AND

FINANCING ACTIVITIES
Acquisition of Subscription Assets - $ - $ 201,334 $ 201,334 $

(148)

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(149)

FIDUCIARY FUNDS

CITY OF NORCO

CUSTODIAL FUNDS DESCRIPTIONS
JUNE 30, 2024
(150)
General Trust – To account for various deposits, etc. with the City from different groups.

Waste Management – To account for collections from citizens for solid waste by the City on behalf of Waste Management, Inc. and payments made by the City to Waste Management, Inc.

Community Facilities District 97-1 – To account for receipts of assessments from Norco Hills residences and for the payment of debt service and administrative costs for the community facilities district. The bonds were issued in 2000 for the construction of various infrastructure assets.

Community Facilities District 2001-1 – To account for receipts of assessments from Norco Ridge Ranch homes and for the payment of debt service and administrative costs for the community facilities district. The bonds were issued in 2002 for the acquisition of certain public facilities and the payment of certain environmental fees.

Community Facilities District 2002-1 – To account for receipts of assessments from KB Homes residences and for the payment of debt service and administrative costs for the community facilities district. The bonds were issued in 2003 for the construction of trail improvements and a traffic signal at 6th Street and California.

CITY OF NORCO

COMBINING STATEMENT OF FIDUCIARY NET POSITION

ALL CUSTODIAL FUNDS
JUNE 30, 2024
(151)
Community Community Community Total
General Waste Facilities Facilities Facilities Custodial Trust Management District 97-1 District 2001-1 District 2002-1 Funds ASSETS
Cash and Investments $ 546,906 $ 71,927 $ 601,281 $ 2,705,260 $ 179,250 $ 4,104,624 Cash and Investments With
Fiscal Agents - - 231,493 1,468,453 - 1,699,946
Receivables, Net:

Accounts 56,262 645,124 - - - 701,386
Interest - - 1,914 8,348 565 10,827
Due from Other Governments 156 - 5,801 31,638 - 37,595
Total Assets 603,324 717,051 840,489 4,213,699 179,815 6,554,378

LIABILITIES
Accounts payable 111,125 643,108 84 272 11 754,600
Deposits Payable 492,199 59,443 - - - 551,642
Total Liabilities 603,324 702,551 84 272 11 1,306,242

NET POSITION
Restricted for:

Waste Management - 14,500 - - - 14,500
Debt Service for Special
Assessment Debt - - 840,405 4,213,427 179,804 5,233,636 Total Net Position $ - $ 14,500 $ 840,405 $ 4,213,427 $ 179,804 $ 5,248,136

CITY OF NORCO

COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

ALL CUSTODIAL FUNDS
YEAR ENDED JUNE 30, 2024
(152)
Community Community Community Total
General Waste Facilities Facilities Facilities Custodial Trust Management District 97-1 District 2001-1 District 2002-1 Funds

ADDITIONS
Collections for Others $ - $ 7,464,904 $ 458,711 $ 2,487,133 $ 116,548 $ 10,527,296 Investment Earnings - - 36,417 176,336 8,523 221,276
Total Additions - 7,464,904 495,128 2,663,469 125,071 10,748,572

DEDUCTIONS
Payment for collections to
Waste Management - 7,451,869 - - - 7,451,869
Administration Expenses - - 41,181 94,320 22,967 158,468 Payments on Special Assessment
Debt:

Principal - - 335,000 1,270,000 75,799 1,680,799
Interest - - 89,191 1,030,500 30,485 1,150,176
Total Deductions - 7,451,869 465,372 2,394,820 129,251 10,441,312 CHANGE IN NET POSITION - 13,035 29,756 268,649 (4,180) 307,260 Net Position - Beginning of the Year - 1,465 810,649 3,944,778 183,984 4,940,876

NET POSITION -
END OF THE YEAR $ 14,500 - $ 840,405 $ 4,213,427 $ 179,804 $ 5,248,136 $

(154)

THIS PAGE INTENTIONALLY LEFT BLANK

CITY OF NORCO, CALIFORNIA

DESCRIPTION OF STATISTICAL SECTION CONTENTS
JUNE 30, 2024
(155)
This part of the City of Norco’s comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City’s overall financial health.

Contents Pages

Financial Trends 156
These tables contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time.

Revenue Capacity 166
These schedules contain information to help the reader assess the City’s most significant local revenue source, the property tax.

Debt Capacity 170
These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future.

Demographic and Economic Information 178
These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place.

Operating Information 182
These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs.

CITY OF NORCO

NET POSITION BY COMPONENT

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(156)
2015 2016 2017 2018
Governmental activities
Invested in capital assets, net of related debt 173,699,189 $ 176,622,650 $ 174,442,174 $ $ 174,890,993 Restricted 30,816,790 30,724,769 31,091,357 30,074,012
Unrestricted 248,067 2,515,519 3,194,792 (1,296,563)
Total governmental activities net position $ 209,862,938 204,764,046 $ 208,728,323 $ 203,668,442 $ Business-type activities
Invested in capital assets, net of related debt 34,845,725 $ 32,641,357 $ 31,655,305 $ $ 32,636,095 Restricted 1,450,167 1,503,178 1,712,000 1,476,331
Unrestricted 14,549,779 20,575,188 24,802,130 22,717,620 Total business-type activities net position $ 54,719,723 50,845,671 $ 58,169,435 $ 56,830,046 $ Primary Government
Net Investment in capital assets 208,544,914 $ 209,264,007 $ 206,097,479 $ 207,527,088 $ Restricted 32,266,957 32,227,947 32,803,357 31,550,343 Unrestricted 14,797,846 23,090,707 27,996,922 21,421,057 Total primary government net position $ 264,582,661 255,609,717 $ 266,897,758 $ 260,498,488 $ Source: City's financial statements
Fiscal Year

CITY OF NORCO

NET POSITION BY COMPONENT (CONTINUED)

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(157)
2019 2020 2021 2022 2023 2024
$ 177,143,786 176,345,781 $ 176,797,895 $ 182,078,689 $ $ 204,786,208 189,484,053 $ 22,301,118 29,152,904 21,842,280 25,833,667 28,296,980 25,295,237 13,797,616 3,061,188 20,048,961 27,741,235 34,121,370 40,597,542 $ 213,242,520 208,559,873 $ 218,689,136 $ 235,653,591 $ 255,376,832 $ 267,204,558 $ $ 32,451,604 38,385,618 $ 33,381,504 $ 36,596,095 $ $ 42,880,256 38,586,712 $ 137,489 2,483,441 26,475 1,830,956 790,396 493,645
31,586,101 20,722,463 34,373,885 33,870,562 32,618,705 35,685,503 $ 64,175,194 61,591,522 $ 67,781,864 $ 72,297,613 $ 74,765,860 $ 76,289,357 $ $ 209,595,390 214,731,399 $ 210,179,399 $ 218,674,784 $ 228,070,765 $ 247,666,464 $ 22,438,607 31,636,345 21,868,755 27,664,623 25,788,882 29,087,376 45,383,717 23,783,651 54,422,846 61,611,797 76,283,045 66,740,075 $ 277,417,714 270,151,395 $ 286,471,000 $ 307,951,204 $ 330,142,692 $ 343,493,915 $ Fiscal Year

CITY OF NORCO

CHANGES IN NET POSITION

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(158)
2015 2016 2017 2018
Expenses
Governmental activities:

General government 3,970,788 $ 4,546,424 $ 5,060,194 $ $ 5,164,710 Public safety 8,943,161 9,570,143 9,698,034 10,585,952
Public works 3,769,407 4,655,515 4,631,223 4,934,050
Community development 756,389 1,276,946 1,487,998 1,624,009 Culture & leisure 2,252,339 2,449,518 2,640,415 2,573,716 Loss on sale of land held for resale - - 26,630 - Total governmental activities expenses 19,692,084 22,498,546 23,544,494 24,882,437 Business-type activities:

Water 9,138,304 9,673,588 9,209,912 11,075,924
Sewer 5,700,595 6,315,558 5,915,756 6,786,370
Recylced Water - - - - Total business-type activities expenses 14,838,899 15,989,146 15,125,668 17,862,294 Total primary government expenses 34,530,983 $ 38,487,692 $ 38,670,162 $ 42,744,731 $ Program Revenues
Governmental activities:

Charges for services:

General government 1,989,162 $ 2,069,324 $ 2,127,348 $ $ 2,302,669 Public safety 812,963 855,169 891,368 927,629
Streets & highways 878,190 938,429 927,983 929,602
Community & economic development 758,593 940,048 1,146,162 1,094,604 Culture & leisure 734,141 756,341 721,995 756,965
Operating grants and contributions 1,832,271 1,596,119 1,438,753 1,804,315 Capital grants and contributions 1,402,527 5,064,800 1,417,227 2,040,545 Total governmental activities program revenues 8,407,847 12,220,230 8,670,836 9,856,329 Business-type activities:

Charges for services:

Water 8,960,772 8,353,699 11,102,037 12,144,054
Sewer 5,857,823 6,296,636 7,065,681 7,491,015
Recylced Water - - - - Operating grants and contributions - - - - Capital grants and contributions - 4,350,067 - - Total business-type activities program revenues 14,818,595 19,000,402 18,167,718 19,635,069 Total program government program revenues 23,226,442 $ 31,220,632 $ 26,838,554 $ 29,491,398 $ Net(Expense)/Revenue
Governmental activities (11,284,237) $ (10,278,316) $ (14,873,658) $ (15,026,108) $ Business-type activities (20,304) 3,011,256 3,042,050 1,772,775 $ (7,267,060) (11,304,541) $ (11,831,608) $ (13,253,333) $ Source: City's financial statements
Fiscal Year

CITY OF NORCO

CHANGES IN NET POSITION (CONTINUED)

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(159)
2019 2020 2021 2022 2023 2024
$ 5,752,506 5,260,115 $ 6,590,791 $ 9,639,441 $ $ 9,343,449 11,844,908 $ 11,653,805 10,850,324 11,842,671 10,991,835 14,569,065 9,311,148 5,934,482 5,669,159 5,167,004 8,627,523 7,155,522 6,061,354 1,546,406 1,602,171 2,110,070 1,974,201 2,489,190 1,693,419 3,236,433 2,726,047 3,000,679 2,637,799 6,368,248 2,579,776 - - - - - -
28,123,632 26,107,816 28,711,215 33,870,799 31,490,605 39,925,474 12,699,537 10,688,780 11,325,678 12,368,339 13,591,585 11,821,081 7,134,484 7,222,648 6,397,952 7,740,315 7,271,045 6,335,901 - - - - - 19,270
19,834,021 17,911,428 17,723,630 20,108,654 18,156,982 20,881,900 $ 47,957,653 44,019,244 $ 46,434,845 $ 53,979,453 $ 49,647,587 $ 60,807,374 $ $ 2,417,671 2,396,727 $ 2,180,587 $ 2,082,234 $ $ 2,076,768 2,426,873 $ 1,005,055 1,011,589 1,088,710 1,130,231 1,506,435 1,107,141 1,148,038 1,231,104 933,850 983,499 1,410,933 1,412,390 1,217,777 1,309,354 1,520,456 3,003,618 1,657,698 2,227,596 529,898 759,020 230,472 1,294,904 1,481,366 1,345,245
2,113,841 2,251,013 2,407,654 3,124,093 4,024,936 2,847,772 2,007,911 4,457,879 147,472 6,297,305 6,752,086 5,090,952 10,440,191 13,416,686 8,509,201 17,915,884 16,457,969 18,910,222 13,282,918 12,974,480 13,660,048 13,746,965 12,505,225 12,424,207 8,324,845 8,824,907 7,469,592 9,769,632 8,092,304 7,387,390 - - - - - -
- - - - - -
- 12,599 122,408 1,931,129 256,742 170,421
21,730,171 21,799,387 21,142,239 25,447,726 19,982,018 20,854,271 $ 32,170,362 35,216,073 $ 29,651,440 $ 43,363,610 $ 36,439,987 $ 39,764,493 $ $ (17,683,441) (12,691,130) $ (20,202,014) $ (15,954,915) $ (15,032,636) $ (21,015,252) $ 1,896,150 3,887,959 3,418,609 5,339,072 1,825,036 (27,629) $ (15,787,291) (8,803,171) $ (16,783,405) $ (10,615,843) $ (13,207,600) $ (21,042,881) $ Fiscal Year

CITY OF NORCO

CHANGES IN NET POSITION (CONTINUED)

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(160)
General Revenues and Other Changes in
Net Position
Governmental activities: 2015 2016 2017 2018
Taxes:

Property tax, levied for general purpose 1,739,484 $ 1,656,163 $ 4,062,986 $ $ 4,364,143 Transient occupancy tax 427,260 519,548 561,766 586,369 Franchise tax 1,221,453 1,334,588 1,400,636 1,561,383
Sales tax in lieu 1,409,297 1,213,148 - - Motor vehicle in lieu tax 2,138,532 2,258,119 12,124 14,246 Intergovernmental - Sales tax 4,603,115 5,613,795 6,837,653 7,188,921 Public service taxes 361,320 360,712 363,347 401,258
Gain/(Loss) on sale of capital assets 190 110 - - Unrestricted investment earnings(losses) 35,902 69,619 100,009 252,510 Contributions from other agency 53,809 - - - Intergovernmental 140,930 124,047 125,420 125,937 Special Item - Transfer of Assets to Housing
Successor Agency 17,767,484 - - - Special Item - Sale of Donated Item 3,086,508 - - - Transfers 276,652 276,568 275,102 258,204 Total governmental activities 33,261,936 13,426,417 13,739,043 14,752,971 Business-type activities:

Unrestricted investment earnings(losses) 148,249 619,897 682,764 797,610 Special Item - Sale of Donated Item 6,778,143 - - - Transfers (276,652) (276,568) (275,102) (258,204) Total business-type activities 6,649,740 343,329 407,662 539,406 Total primary government 39,911,676 $ 13,769,746 $ 14,146,705 $ 15,292,377 $ Change in Net Position
Governmental activities 21,977,699 $ 3,148,102 $ (1,134,615) $ (273,137) $ Business-type activities 6,629,436 3,354,585 3,449,712 2,312,181 Total primary government 28,607,135 $ 6,502,687 $ 2,315,097 $ 2,039,044 $ Source: City's financial statements
Fiscal Year

CITY OF NORCO

CHANGES IN NET POSITION (CONTINUED)

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(161)
2019 2020 2021 2022 2023 2024
$ 5,071,222 4,703,051 $ 5,157,673 $ 5,408,797 $ $ 6,528,686 6,103,888 $ 615,989 609,036 741,248 1,057,978 1,189,207 1,154,480
1,751,200 1,674,490 1,863,816 2,025,163 2,228,055 2,128,390 - - - - - -
21,419 12,990 20,216 31,265 32,929 27,326
13,173,182 9,359,520 16,460,577 20,376,348 18,873,345 19,916,654 413,789 399,734 518,358 604,599 454,979 512,318
- - - - - -
564,198 445,846 38,841 (553,147) 3,261,054 1,011,976
- - - - - -
496,885 119,690 589,697 3,003,453 16,523 3,615,015
- - - - - -
- - - - - -
258,204 258,204 258,204 266,905 258,200 285,830
22,366,088 17,582,561 25,648,630 32,221,361 34,755,877 32,842,978 945,726 1,131,721 162,751 (115,150) 1,809,326 929,041
- - - - - -
(258,204) (258,204) (258,204) (266,905) (258,200) (285,830) 687,522 873,517 (95,453) (382,055) 643,211 1,551,126 $ 23,053,610 18,456,078 $ 25,553,177 $ 31,839,306 $ 35,399,088 $ 34,394,104 $ $ 6,411,173 4,891,431 $ 5,446,616 $ 16,266,446 $ 19,723,241 $ 11,827,726 $ 6,026,594 4,761,476 3,323,156 4,957,017 2,468,247 1,523,497 $ 12,437,767 9,652,907 $ 8,769,772 $ 21,223,463 $ 22,191,488 $ 13,351,223 $ Fiscal Year

CITY OF NORCO

FUND BALANCES

GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(162)
2015 2016 2017 2018
General Fund
Nonspendable 2,883,058 $ 3,746,499 $ 3,634,919 $ $ 3,404,066 Restricted 1,725,254 229,659 528,820 671,779
Committed - - - - Unassigned 7,841,852 10,083,161 11,250,211 11,718,584 Total general fund 12,450,164 14,059,319 15,413,950 15,794,429 Housing Successor Agency
Restricted 17,799,129 17,648,086 17,461,190 17,303,845
Total housing successor agency 17,799,129 17,648,086 17,461,190 17,303,845 Strom Drain Capital Project
Restricted - - - - Total housing successor agency - - - - All Other Governmental Funds Nonspendable: - 6,000 - - Restricted:

Public Safety - - - -
Streets and Highways 4,886,148 4,137,649 4,009,389 2,818,550 Community and Economic Development 95,441 138,391 147,822 133,742 Culture and Leisure - - - - Committed:

Emergencies - - - - Assigned:

General Government - - - -
Public Safety 591,096 608,091 661,499 680,053
Streets and Highways 3,041,586 3,579,381 3,875,674 3,813,411 Culture and Leisure 767,184 632,122 622,612 757,526
Unassigned:

Public Safety - - (1,314) -
Streets and Highways (357,529) (17,873) (26,054) (47,420) Community and Economic Development - - - (55,288)
Total all other governmental funds 9,023,926 9,083,761 9,289,628 8,100,574 Total all governmental funds 39,273,219 $ 40,791,166 $ 42,164,768 $ 41,198,848 $ Source: City's financial statements
Fiscal Year

CITY OF NORCO

FUND BALANCES (CONTINUED)

GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(163)
2019 2020 2021 2022 2023 2024
$ 2,459,280 2,591,357 $ 2,325,075 $ 2,183,784 $ $ 2,855,149 2,065,474 $ 124,578 133,326 115,657 2,358,746 2,111,067 3,377,190
4,614,689 7,527,137 9,925,562 12,607,576 12,491,173 14,025,552 17,455,468 9,877,022 19,949,630 27,463,836 29,976,648 30,368,537 24,654,015 20,128,842 32,315,924 44,366,263 48,818,309 48,700,160 17,060,012 17,172,128 16,778,372 16,591,918 16,777,797 16,640,503 17,060,012 17,172,128 16,778,372 16,591,918 16,640,503 16,777,797 - - - - - 1,590,443
- - - - - 1,590,443
2,500 - 2,500 3,000 - -
730,431 757,999 693,301 811,770 682,008 684,605
3,674,845 4,640,824 3,845,515 4,619,778 3,674,845 3,871,499 1,270,883 142,050 216,641 290,723 243,756 228,858
290,723 823,111 683,284 951,925 1,270,883 1,496,474
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - (108,696)
(35,528) (222,280) (38,811) (146,894) (10,354) (25,336) (374,396) (5,428) - - - -
5,559,458 6,136,276 5,402,430 6,483,335 5,908,105 6,147,404 $ 47,273,485 43,437,246 $ 54,496,726 $ 67,441,516 $ 71,366,917 $ 73,215,804 $ Fiscal Year

CITY OF NORCO

CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(164)
2015 2016 2017 2018
Revenues
Taxes 12,536,053 $ 13,599,492 $ 13,923,344 $ 14,861,023 $ Assessments 801,315 776,231 736,112 703,369 Licenses and permits 556,985 670,979 789,382 750,245 Fines and forfeitures 439,590 430,596 346,048 499,446
Development fees 270,977 250,418 846,664 178,282
Intergovernmental 1,910,287 2,238,833 1,262,117 2,883,189 Charges for services 2,641,613 2,962,066 3,098,643 2,976,824 Investment earnings (losses) and lease income 539,448 680,581 800,900 1,042,306 Reimbursements 13,281 127,277 - 71,432 Contributions from property owners - - - - Gain on sale of land held for resale - - - - Other 196,275 153,021 220,160 263,294 Total revenues 19,905,824 21,889,494 22,023,370 24,229,410 Expenditures Current:

General government 3,828,322 4,396,554 4,839,346 5,155,987 Public safety 8,807,419 9,339,313 9,559,983 10,526,624 Streets and highways 2,628,850 4,438,203 3,071,423 5,442,522 Community and economic development 790,798 1,251,035 1,408,931 1,633,480 Culture and leisure 2,548,736 1,871,207 2,018,557 2,649,142 Pass through payments - - - - ERAF payment - - - - Debt Service Principal - - - - Interest - - - - Capital outlay
Special Assessment - 805,000 26,630 45,779 Other - - - - Total expenditures 18,604,125 22,101,312 20,924,870 25,453,534 Excess(deficiency) of revenues over(under) expenditures 1,301,699 (211,818) 1,098,500 (1,224,124) Other Financing Sources (Uses) Issuance of Leases - - - - Issuance of Subscriptions - - - - Proceeds from the sale of property - - - - Transfers in 355,571 380,571 479,281 890,498 Transfers out (78,919) (104,003) (204,179) (632,294) Bond/Loan Proceeds - - - - Total other financing sources (uses) 276,652 276,568 275,102 258,204 Special Item Transfer of assets to successor housing agency 17,767,484 - - - Sale of donated assets 3,086,508 - - - - 20,853,992 - - Net change in fund balances $ 22,432,343 $ 64,750 $ 1,373,602 $ (965,920) Debt service as a percentage
of noncapital expenditures 0.00% 0.00% 0.00% 0.00%
Source: City's financial statements
Fiscal Year

CITY OF NORCO

CHANGES IN FUND BALANCES (CONTINUED)

GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(165)
2019 2020 2021 2022 2023 2024
$ 21,847,687 17,592,048 $ 25,769,374 $ 30,612,573 $ 30,938,594 $ 30,396,959 $ 751,608 698,499 779,905 788,192 838,662 882,166
795,991 946,402 1,279,186 2,608,829 1,998,851 1,190,078 513,918 497,029 727,315 593,357 772,981 591,654
493,303 2,014,321 62,717 5,657,076 545,416 6,172,101
3,971,705 3,132,740 2,849,251 5,068,404 10,059,259 2,908,012 3,074,413 3,311,339 2,771,734 4,003,280 3,543,095 4,259,661 1,354,353 1,429,531 409,776 (309,021) 2,006,456 3,942,391 196,165 10,504 11,263 4,956 203,833 7,094
- - - - - -
- - - - - -
203,238 362,391 123,299 685,096 169,419 779,929
33,202,381 29,994,804 34,783,820 49,712,742 51,076,566 51,130,045 6,052,709 5,464,926 6,593,217 10,666,317 12,465,010 8,730,827 11,706,532 11,037,921 11,440,255 10,097,288 11,034,098 13,951,976 6,466,151 7,957,631 4,248,556 6,665,225 9,878,316 3,894,103 1,570,339 1,641,538 2,072,422 1,858,797 1,964,611 2,434,917 2,500,633 2,431,862 2,435,751 3,247,813 3,321,462 5,070,313 - - - - - -
- - - - - -
- - - - 34,255 99,897
- - - - 575 983
1,755,564 - 1,454,185 5,193,726 6,417,810 9,676,713
- - - 3,700 2,185,653 5,786,710
30,051,928 28,533,878 28,244,386 37,732,866 47,301,790 49,646,439 3,150,453 1,460,926 6,539,434 11,979,876 3,774,776 1,483,606 - - - - 94,280 248,692
- - - - 41,134 -
10,600 - 802,585 - - -
377,520 432,466 258,204 286,283 259,705 379,549
(79,316) (174,262) - (19,378) (244,494) (262,960)
- 519,268 - - - -
308,804 777,472 1,060,789 266,905 150,625 365,281
- - - - - -
- - - - - -
- - - - - - $ 2,238,398 $ 3,459,257 $ 7,600,223 $ 12,246,781 $ 3,925,401 $ 1,848,887

0.00% 0.00% 0.00% 0.00% 0.11% 0.29%
Fiscal Year

CITY OF NORCO

ASSESSED VALUE AND ACTUAL VALUE OF TAXABLE PROPERTY

LAST TEN FISCAL YEARS
(IN THOUSANDS)
(166)
June 30, Property Property Value Rate
2015 2,683,938 $ 63,072 2,747,010 1.00000%
2016 2,837,928 63,889 2,901,817 1.00000%
2017 2,944,477 70,594 3,015,071 1.00000%
2018 72,189 3,077,573 1.00000% 3,149,762
2019 81,622 3,267,723 1.00000% 3,349,345
2020 78,050 3,447,467 1.00000% 3,525,517
2021 83,988 3,619,573 1.00000% 3,703,561
2022 85,129 3,829,904 1.00000% 3,915,033
2023 107,416 4,201,767 1.00000% 4,309,183
2024 112,908 4,508,541 1.00000% 4,621,449
Source: Riverside County Office of Auditor-Controller

CITY OF NORCO

DIRECT AND OVERLAPPING PROPERTY TAX RATES

LAST TEN FISCAL YEARS
(RATE PER $100 OF ASSESSED VALUE)
(167)
City Direct Rates Overlapping Rates
Corona/Norco
Unified Metro
Fiscal Basic Total School Water
Year Rate Direct District District
2015 1.00000% 1.00000% 0.06473% 0.00350%
2016 1.00000% 1.00000% 0.08540% 0.00350%
2017 1.00000% 1.00000% 0.09416% 0.00350%
2018 1.00000% 1.00000% 0.08313% 0.00350%
2019 1.00000% 1.00000% 0.09034% 0.00350%
2020 1.00000% 1.00000% 0.09387% 0.00350%
2021 1.00000% 1.00000% 0.09818% 0.00350%
2022 1.00000% 1.00000% 0.09914% 0.00350%
2023 1.00000% 1.00000% 0.09925% 0.00350%
2024 1.00000% 1.00000% 0.09000% 0.00350%
Source: Riverside County Office of Auditor-Controller

CITY OF NORCO

PRINCIPAL PROPERTY TAX PAYERS

CURRENT YEAR AND NINE YEARS AGO
(168)
Percentage Percentage
of Total City of Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Value Rank Value Value Rank Value
Saddle Ranch APG LLC $ 1 117,300,000 2.54%
CRP LDF Saddle Ranch II LLC 92,811,970 2 2.01%
LDK Norco* 34,969,488 3 0.76%
LBA Or Core-Co XII 4 31,620,000 0.68%
Parkridge Realty Partners 28,815,000 5 0.62%
CRPF IV Elwood 21,820,738 6 0.47%
Norco Corona Associates* 21,385,224 7 0.46% $ 1 17,847,941 0.65% Life Storage LP 8 19,167,725 0.41%
Hidden Valley Golf Club LLC 9 18,651,655 0.41%
Target Corporation* 15,411,821 10 0.38% 4 13,080,142 Yihua International Investment 14,916,544 2 0.54% H/H Properties 14,437,653 3 0.53%
WinCo Food LLC 5 10,629,442 0.39%
Rbe Norco Hidden Valley LLC 6 9,965,148 0.36%
1900 Prop 7 9,812,421 0.36%
Rexco Norco 8,779,418 8 0.32%
Grayburn Prop Inc 9 8,711,000 0.32%
140 Hidden Valley Parkway 10 7,805,000 0.28%
$ 8.74% 115,984,709 401,953,621 $ 3.75%
* Pending Appeals on Parcels
Source: HDL 23-24 Property data - Preliminary Property Tax Reports Top ten property taxpayers
2024 2015

CITY OF NORCO

PROPERTY TAX LEVIES AND COLLECTIONS

LAST TEN FISCAL YEARS
(169)
Fiscal Collected within the
Year Taxes Levied Fiscal Year of the Levy Collections Total Collections to Date Ended for the Percentage in Subsequent Percentage
June 30, Fiscal Year Amount of Levy Years Amount of Levy 2015 1,237,395 1,192,560 96.4% 46,470 1,239,030 100.1%
2016 1,290,343 1,245,895 96.6% 37,237 1,283,132 99.4%
2017 1,332,220 1,298,564 97.5% 34,062 1,332,626 100.0%
2018 1,378,552 1,346,180 97.7% 32,572 1,378,752 100.0%
2019 1,426,216 1,455,419 98.0% 42,058 100.9% 1,468,274
2020 1,490,634 1,539,793 96.8% 35,406 99.1% 1,526,040
2021 1,566,020 1,528,417 97.6% 42,088 1,570,505 100.3%
2022 1,626,690 1,593,434 98.0% 58,253 1,651,687 101.5%
2023 1,717,650 1,679,098 97.8% 47,142 1,726,240 100.5%
2024 1,810,319 1,791,260 98.9% 65,261 1,856,521 102.6%
Source: Riverside County Office of Auditor-Controller
Note: The amounts collected in the subsequent years column reflects a combination of collections from multiple prior fiscal years and cannot be separated readily for the purpose of this schedule. Also, the taxes collected during the different fiscal years includes supplemental taxes that may not have been picked up in the original levy. For these reasons, the collection percentage for the various fiscal years is exceeding the amount levied by more than 100%.

CITY OF NORCO

RATIOS OF OUTSTANDING DEBT BY TYPE

LAST TEN FISCAL YEARS
(DOLLARS IN THOUSANDS, EXCEPT PER CAPITA)
(170)
Business-Type Activities
Term Term
Fiscal Loan Loan
Year Payable Bonds Payable
2015 - $ - $ 199 $ 34,801 $ - $ - $ 986 2016 - - 102 34,093 - - 3,533 2017 - - - 33,354 - - 5,585 2018 - - - - 32,585 6,542 - 2019 - - - - 31,777 6,446 - 2020 - - - - 44,239 6,175 - 2021 - - - - 42,901 5,884 - 2022 169 - - 28 41,258 5,588 - 2023 256 199 - 22 40,105 108 5,285 2024 174 315 - 15 38,642 56 4,978
Note: Details regarding the City's outstanding debt can be found in the notes to the City's financial statements. **data not available 1 U.S. Department of Commerce, Bureau of Economic Analysis for Riverside County Leases
Payable
Leases
Payable
Governmental Activities
Subscription
Liability
Subscription
Liability

CITY OF NORCO

RATIOS OF OUTSTANDING DEBT BY TYPE (CONTINUED)

LAST TEN FISCAL YEARS
(DOLLARS IN THOUSANDS, EXCEPT PER CAPITA)
(171)
Total Percentage Percentage
Primary of Personal of Assessed Per
Government Capita Valuation Capita1
5% 1.31% 1,330 35,986
10% 1.30% 1,403 37,728
** 1.29% 1,435 38,939
** 1.24% 1,459 39,127
** 1.14% 1,436 38,223
** 1.43% 1,829 50,414
** 1.32% 1,834 48,785
** 1.20% 1,804 47,043
** 1.07% 1,836 45,975
** 0.96% 1,740 44,180

CITY OF NORCO

RATIOS OF GENERAL BONDED DEBT OUTSTANDING

LAST TEN FISCAL YEARS
(DOLLARS IN THOUSANDS, EXCEPT PER CAPITA)
(172)
Net Percentage of
General Debt General Actual Taxable
Fiscal Obligation Service Bonded Value of Per
Year Bonds(1) Reserve Debt Property Capita(2)
2015 - $ - $ - $ 0.00% - $
2016 - - - 0.00% - 2017 - - - 0.00% -
2018 - - - 0.00% -
2019 - - - 0.00% -
2020 - - - 0.00% -
2021 - - - 0.00% -
2022 - - - 0.00% -
2023 - - - 0.00% -
2024 - - - 0.00% -
(1) The City has no general obligation bonded debt for last ten fiscal years. (2) See population data in schedule of "Demographic and Economics Statistics".

Note: Details regarding the City's outstanding debt can be found in the notes to the City's financial statements.

CITY OF NORCO

DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
JUNE 30, 2024
(173)
2022-23 Assessed Valuation: $ 4,621,448,793
Direct and Overlapping Tax and Assessment Debt: % Applicable (1) Debt Metropolitan Water District 0.119 % $ 21,670
Riverside City Community College District 3.018 8,536,457 Alvord Unified School District 0.002 5,192 Corona-Norco Unified School District 9.289 44,390,159
City of Norco 100.000 - City of Norco Community Facilities District No. 97-1 100.000 2,655,000 City of Norco Community Facilities District No. 2001-1 100.000 19,975,000 City of Norco Community Facilities District No. 2002-1 100.000 737,139 Lease Payable 100.000 315,917
Subscription Liability 100.000 173,852
Total Direct and Overlapping Tax and Assessment Debt 76,810,386 $ Overlapping General Fund Debt:

Riverside County General Fund Obligations 1.165 % $ 13,621,378 Riverside County Pension Obligations 1.165 7,814,645 Riverside Community College District Certificates of Participation 3.018 740,919 Western Municipal Water District Certificates of Participation 3.649 99,415 Corona-Norco Unified School District Certificates of Participation 9.289 1,589,778 Total Overlapping General Fund Debt 23,866,135 $
Overlapping Tax Increment Debt (Successor Agencies): 0.066 - 99.985 % $ 54,379,929 Total Direct Debt - $
Total Overlapping Debt $ 155,056,450
Combined Total Debt $ 155,056,450 (2)
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value.

Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value. (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations. Qualified Zone Academy Bonds are included based on principal due at maturity.

Ratios to 2023-24 Assessed Valuation:

Total Direct and Overlapping Tax and Assessment Debt 1.65% Total Direct Debt 0.00%
Combined Total Debt 3.34%
Ratios to Redevelopment Incremental Valuation ($2,784,664,165):

Total Overlapping Tax Increment Debt 1.95%
Source: Avenu Insights & Analytics
California Municipal Statistics, Inc.

CITY OF NORCO

LEGAL DEBT MARGIN INFORMATION

LAST TEN FISCAL YEARS
(DOLLARS IN THOUSANDS)
(174)
2015 2016 2017 2018
Debt limit 412,052 $ 452,261 $ 452,261 $ 472,464 $
Total net debt applicable to limit - - - - Legal debt margin $ 412,052 $ 452,261 $ 452,261 $ 472,464 Total net debt applicable to the limit
as a percentage of debt limit 0.00% 0.00% 0.00% 0.00%
Source: City Finance Department
(1) The City has no general obligation bonded debt for last ten fiscal years.

Fiscal Year
(1)

CITY OF NORCO

LEGAL DEBT MARGIN INFORMATION (CONTINUED)

LAST TEN FISCAL YEARS
(DOLLARS IN THOUSANDS)
(175)
2019 2020 2021 2022 2023 2024
$ 528,828 502,402 $ 555,534 $ 587,255 $ 646,378 $ 693,217 $ - - - - - - $ 502,402 $ 528,828 $ 555,534 $ 587,255 $ 646,378 $ 693,217

0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Assessed value 4,621,449 $
Debt limit (15% of assessed value) 693,217 Debt applicable to limit:

General obligation bonds - Less: Amount set aside for
repayment of general obligation
debt -
Total net debt applicable to limit -
Legal debt margin $ 693,217
Fiscal Year

CITY OF NORCO

PLEDGED-REVENUE COVERAGE

LAST TEN FISCAL YEARS
(DOLLARS IN THOUSANDS)
(176)
Utility Less: Net
Fiscal Service Operating Available
Year Charges Expenses(1) Revenue Principal Interest Coverage 2015 14,819 $ 10,459 $ 4,360 $ 700 $ 1,917 $ 1.67 2016 14,650 11,474 3,176 725 1,889 1.21 2017 18,168 10,389 7,779 755 1,858 2.98 2018 12,974 19,635 6,661 1,822 785 2.56 2019 12,770 21,799 9,029 1,782 825 3.46
2020 13,996 21,172 7,176 1,740 870 2.75
2021 12,957 21,130 1,010 8,173 1,605 3.13 2022 15,633 23,517 1,045 7,884 1,569 3.02 2023 13,522 19,812 1,095 6,290 1,526 2.40 2024 20,598 16,189 4,409 1,135 1,482 1.68 Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements. (1) Operating expenses do not include depreciation, or amortization expenses. (2) The City is not liable for Special Assessment District or Community Facility District defaults; collections and remittances are accounted in an agency fund.
(4) The Dept. of Finance approves the Recognized Obligation Payment Schedule, and the city receives payments from County of Riverside beginning fiscal year 2012.
(3) The Bonds are limited obligation of the Successor Agency.

Utility Revenue Bonds
Debt Service

CITY OF NORCO

PLEDGED-REVENUE COVERAGE (CONTINUED)

LAST TEN FISCAL YEARS
(DOLLARS IN THOUSANDS)
(177)
Special Redevelopment
Assessment Property
Collections Principal Interest Coverage Tax Principal Interest Coverage $ 1,134 3,307 $ 1,977 $ 1.06 6,781 $ (4) 2,205 $ 3,537 $ 1.18 1,213 3,370 1,932 1.07 7,251 (4) 2,535 4,222 1.07
1,319 3,220 1,882 1.01 7,243 (4) 2,915 4,130 1.03
1,419 3,344 1,371 1.20 6,999 (4) 3,701 2,880 1.06
2,345 3,014 1,447 0.79 6,770 (4) 3,169 2,950 1.11
1,286 2,883 1,388 1.08 6,044 (4) 3,040 2,990 1.00
3,009 1,342 1,370 1.11 6,644 (4) 3,460 2,725 1.07
3,019 1,288 1,464 1.10 6,668 (4) 3,230 2,791 1.11
3,028 1,224 1,567 1.08 6,520 (4) 3,360 2,650 1.08
1,681 3,062 1,150 1.08 6,307 (4) 3,510 2,500 1.05
Special Assessment Bonds(2) Successor Agency Bonds (3)
Debt Service Debt Service

CITY OF NORCO

DEMOGRAPHIC AND ECONOMIC STATISTICS

LAST TEN CALENDAR YEARS
(178)
Personal Per Capita
Estimated Income Personal School Unemployment
Year Population(1) (in thousands)(2) Income(3) Enrollment(4) Rate(5) 2015 27,063 767,453 88,051 53,618 6 2016 26,896 87,067 823,340 5 53,354 2017 27,143 ** ** 53,157 5 2018 26,809 ** ** 4 53,294 2019 26,610 ** ** 4 53,002 2020 27,564 ** ** 4 52,557 2021 26,604 ** ** 5 51,318 2022 26,077 ** ** 4 50,889 2023 25,042 ** ** 50,790 5 2024 25,398 ** ** 50,256 5
Sources:
(1) State Department of Finance, Demographic Research Unit (2) Estimated based on "Per Capita Personal Income".
(3) U.S. Department of Commerce, Bureau of Economic Analysis for Riverside County (4) Enrollment data for Corona Norco Unified School District obtained from the California State Department of Education.
(5) State Employment Development Department, Labor Market Information Division. ** data not available

CITY OF NORCO

PRINCIPAL EMPLOYERS

CURRENT YEAR AND NINE YEARS AGO
(179)
2024 2015
Percentage Percentage
of Total City of Total City
Employer Employees Rank Employment(1) Employees Rank Employment(1) Naval Surface Warfare Center (NSWC) - Corona* 2,000 16.00% 1 1,300 2 10.83% Corona-Norco Unified School District 1,260 10.08% 2 4,932 1 41.10% California Rehabilitation Center (CRC) - CDCR 1,181 9.45% 3 1,128 3 9.40% Norco College (RCCD) 508 4.06% 4 420 4 3.50%
Target Stores 162 1.30% 5 183 5 1.53%
Quick Crete Products (QCP) 157 1.26% 155 6 6 1.29%
Winco Foods 125 1.00% 7
City of Norco 121 0.97% 9
E-Z Up Instant Shelters 116 0.93% 8 122 7 1.02%
Hemborg Ford, Inc. 109 0.87% 10 100 8 0.83%
Keller Williams Realty 98 9 0.82%
Avid Identification Sys, Inc. 97 10 0.81%
Total 5,739 45.91% 8,535 71.13%
Total City Labor Force (1) 12,500
Source: MuniServices / Avenu Insights & Analytics
Source: FY2015, City of Norco -- ACFR Publication Report (1) Total City Labor Force provided by EDD Labor Force Data.

Results based on direct correspondence with city’s local businesses.

CITY OF NORCO

FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES

BY FUNCTION/PROGRAM

LAST TEN FISCAL YEARS
(180)
2015 2016 2017 2018 2019
Function/Program
General government
Administration 1 1 2 2 2
City Clerk 2 2 2 2 2
Finance 10 11 12 12 12
Human Resources 1 1 1 1 1
Public Safety
Police (Civilian) 1 1 1 1 1
Code Enforcement 1 1 1 1 1
Animal Services 3 3 2 3 3
Infrastructure
Facilities & Maintenance 0 0 0 0 0
Public Works 14 13 12 15 15
Culture and leisure
Community Services 8 8 10 10 10
Community development
Planning 2 2 2 2 2
Engineering 2 2 3 3 3
Building 2 3 3 3 3
Total 47 48 51 55 55 Source: City's annual adopted budgets Full-time Equivalent Employees as of June 30

CITY OF NORCO

FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES

BY FUNCTION/PROGRAM (CONTINUED)

LAST TEN FISCAL YEARS
(181)
2020 2021 2022 2023 2024
3 2 3 6 7
2 3 3 3 3
12 10 11 12 12
1 1 1 1 1
1 1 1 1 1
1 2 2 2 2
3 4 4 4 4
0 0 0 12 12
15 18 18 25 25
10 14 14 9 9
2 2 3 3 3
3 3 4 2 2
3 3 3 2 2
63 56 67 82 83
Full-time Equivalent Employees as of June 30

CITY OF NORCO

OPERATING INDICATORS BY FUNCTION/PROGRAM

LAST TEN FISCAL YEARS
(182)
2015 2016 2017 2018 2019
Function/Program
Police
UCR Crime index total 709 752 850 707 732 Traffic collisions 556 603 674 608 618 Traffic violations 2,436 1,869 2,031 2,175 2,384 Fire Total number of responses 2,287 2,419 2,443 2,515 2,520 Fires extinguished 53 57 62 75 67 Water Number of service connections 7,471 7,475 7,481 7,485 7,468 Average daily consumption (in mil. of gallons) 8 5 6 6 6 Max. daily (groundwater wells) capacity (in mil. of gallons) 8 8 5 5 5 Max. daily import capacity (in mil. of gallons) 12 12 12 12 12 Storage capacity (in mil. of gallons) 11 11 11 11 11 Sewer Number of sewer connections 6,897 6,913 6,954 6,972 6,969 Average daily treatment (in mil. of gallons) 2 2 2 2 2 Max. daily capacity of treatment plans (in mil. of gallons) 2 2 3 2 3 Source: Various City's departments Fiscal Year

CITY OF NORCO

OPERATING INDICATORS BY FUNCTION/PROGRAM (CONTINUED)

LAST TEN FISCAL YEARS
(183)
2020 2021 2022 2023 2024
631 682 715 757 694
482 502 558 516 524
2,721 2,770 3,168 2,977 3,182
2,799 2,602 3,025 2,930 3,403
109 67 87 58 71
7,476 7,650 7,471 7,488 7,958
6 6 6 6 5
5 5 5 6 4
9 12 9 9 9
14 11 14 14 14
6,963 6,970 6,963 6,963 6,963
2 2 2 2 2
3 3 3 3 3
Fiscal Year

CITY OF NORCO

CAPITAL ASSETS BY FUNCTION/PROGRAM

LAST TEN FISCAL YEARS
(184)
2015 2016 2017 2018 2019
Function/Program
Public safety
Fire stations 2 2 2 2 2 Culture and leisure
Parks 15 15 15 15 15 Park Acreage 168 168 168 168 168 Open Space Acreage 835 835 835 835 835 Tennis court 1 1 1 1 1 Community center 1 1 1 1 1 Public playgrounds/Tot lots 9 9 9 9 9 Water Water mains (miles) 103 103 103 117 114 Fire hydrants 1,297 1,363 1,400 1,415 1,443 Sewer Sanitary sewers (miles) 92 92 97 105 104 Treatment plant 1 1 1 1 1 Source: Various City's departments Fiscal Year

CITY OF NORCO

CAPITAL ASSETS BY FUNCTION/PROGRAM (CONTINUED)

LAST TEN FISCAL YEARS
(185)
2020 2021 2022 2023 2024
2 2 2 2 2
15 15 15 15 15
168 168 168 168 168
835 835 835 835 835
1 1 1 1 1
1 1 1 1 1
9 9 9 9 9
122 117 122 122 120
1,394 1,393 1,406 1,406 1,406
107 104 109 109 109
1 1 1 1 1
Fiscal Year

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CliftonLarsonAllen LLP
CLAconnect.com
Honorable Mayor and members of City Council
City of Norco
Norco, California
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Norco as of and for the year ended June 30, 2024, and have issued our report thereon dated December 31, 2024 . We have previously communicated to you information about our responsibilities under auditing standards generally accepted in the United States of America and Government Auditing Standards, as well as certain information related to the planned scope and timing of our audit in our statement of work – audit services dated May 28, 2024. Professional standards also require that we communicate to you the following information related to our audit.

Significant audit findings or issues
Qualitative aspects of accounting practices
Accounting policies
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by City of Norco are described in Note 1 to the financial statements.

The City changed accounting policies related to accounting changes and error corrections by adopting Statement of Governmental Accounting Standards Board (GASB Statement) No. 100, Accounting Changes and Error Corrections, in the current fiscal year. As a result of the storm drain capital projects fund meeting the quantitative threshold to be reported as a major fund in the current year, the nonmajor combining statements have been presented to identify this change within the reporting entity and Note 17 discloses the nature of the change and the effects on beginning fund balance.

We noted no transactions entered into by the entity during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.

Accounting estimates
Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements were:
 The annual required contributions, pension expense, net pension liability, and corresponding deferred outflows of resources and deferred inflows of resources for the City’s cost sharing employer defined benefit pension plans are based on actuarial valuations provided by California Public Employee Retirement System actuaries and for the City’s single employer defined benefit pension plan are based on an actuarial valuation provided by a third-party actuary.  The other postemployment benefits (OPEB) expense and total OPEB liability, and corresponding deferred outflows of resources and deferred inflows of resources for the City’s OPEB plan are based on an actuarial valuation provided by a third-party actuary.

Honorable Mayor and Members of City Council
City of Norco

We evaluated the key factors and assumptions used to develop these estimates in determining that they were reasonable in relation to the financial statements taken as a whole.

Financial statement disclosures
Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the financial statements were Note 5 for the City’s pension plans and Note 13 for the City’s other post-employment benefits.

The financial statement disclosures are neutral, consistent, and clear.

Significant unusual transactions
We identified no significant unusual transactions.

Difficulties encountered in performing the audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.

Uncorrected misstatements
Professional standards require us to accumulate all misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management.

Management has determined that the effects of uncorrected misstatements are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. The following summarizes uncorrected misstatements of the financial statements:
 Establishment of an allowance for an estimated $270,000 in uncollectible miscellaneous receivables that have been outstanding for over one year.  Accrual of $307,000 in interest income on U.S. Governmental Agency debt security investments held with U.S. Bank.

Uncorrected misstatements or the matters underlying uncorrected misstatements could potentially cause future-period financial statements to be materially misstated, even if management has concluded that the uncorrected misstatements are immaterial to the financial statements under audit.

Corrected misstatements
None of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to the financial statements taken as a whole.

Disagreements with management
For purposes of this communication, a disagreement with management is a disagreement on a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditors’ report. No such disagreements arose during our audit.

Honorable Mayor and Members of City Council
City of Norco

Management representations
We have requested certain representations from management that are included in the management representation letter dated December 31, 2024.

Management consultations with other independent accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the entity’s financial statements or a determination of the type of auditors’ opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.

Significant issues discussed with management prior to engagement We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to engagement as the entity’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our engagement.

Required supplementary information
With respect to the required supplementary information (RSI) accompanying the financial statements, we made certain inquiries of management about the methods of preparing the RSI, including whether the RSI has been measured and presented in accordance with prescribed guidelines, whether the methods of measurement and preparation have been changed from the prior period and the reasons for any such changes, and whether there were any significant assumptions or interpretations underlying the measurement or presentation of the RSI. We compared the RSI for consistency with management’s responses to the foregoing inquiries, the basic financial statements, and other knowledge obtained during the audit of the basic financial statements. Because these limited procedures do not provide sufficient evidence, we did not express an opinion or provide any assurance on the RSI.

Supplementary information in relation to the financial statements as a whole With respect to the combining and individual fund financial statements and schedules (collectively, the supplementary information) accompanying the financial statements, on which we were engaged to report in relation to the financial statements as a whole, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period or the reasons for such changes, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. We have issued our report thereon dated December 31, 2024.

Other information included in annual reports
Other information (financial or nonfinancial information other than the financial statements and our auditors’ report thereon) is being included in your annual report and is comprised of the introductory and statistical sections. Our responsibility for other information included in your annual report does not extend beyond the financial information identified in our opinion on the financial statements. We have no

Honorable Mayor and Members of City Council
City of Norco

responsibility for determining whether such other information is properly stated and do not have an obligation to perform any procedures to corroborate other information contained in your annual report.

We are required by professional standards to read the other information included in your annual report and consider whether a material inconsistency exists between the other information and the financial statements because the credibility of the financial statements and our auditors’ report thereon may be undermined by material inconsistencies between the audited financial statements and other information.

If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Our auditors’ report on the financial statements includes a separate section, “Other Information,” which states we do not express an opinion or any form of assurance on the other information included in the annual report. We did not identify any material inconsistencies between the other information and the audited financial statements. * * *
This communication is intended solely for the information and use of the honorable mayor and members of City Council and management of City of Norco and is not intended to be, and should not be, used by anyone other than these specified parties.

CliftonLarsonAllen LLP
Irvine, California
December 31, 2024

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INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER

FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS

BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED

IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Honorable Mayor and Members of City Council
City of Norco
Norco, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Norco, as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City of Norco’s basic financial statements, and have issued our report thereon dated December 31, 2024.

Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered City of Norco’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of City of Norco’s internal control. Accordingly, we do not express an opinion on the effectiveness of City of Norco’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.

Honorable Mayor and Members of City Council
City of Norco
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether City of Norco’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

CliftonLarsonAllen LLP
Irvine, California
December 31, 2024

CITY OF NORCO, CALIFORNIA
APPROPRIATIONS LIMIT WORKSHEET NO. 6
INDEPENDENT ACCOUNTANTS’ REPORT

ON AGREED-UPON PROCEDURES APPLIED TO
APPROPRIATIONS LIMIT WORKSHEET NO. 6
YEAR ENDED JUNE 30, 2024

(1)
INDEPENDENT ACCOUNTANTS’ REPORT

ON APPLYING AGREED-UPON PROCEDURES
Honorable Mayor and Members
of the City Council
City of Norco
Norco, California
We have performed the procedures enumerated below on the accompanying Appropriations Limit Worksheet No. 6 of the City of Norco, California, (the City) for the year ended June 30, 2024. The City’s management is responsible for the Appropriations Limit Worksheet No. 6.

The City and the League of California Cities (as presented in the League publication entitled Article XIIIB Appropriations Limit Uniform Guidelines) have agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of meeting the requirements of Section 1.5 of Article XIII-B of the California Constitution. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.

The procedures and associated findings are as follows:

1. We obtained the completed Appropriations Limit Worksheet No. 6 for the year ended June 30, 2024, and compared the limit and annual adjustment factors included in that worksheet to the limit and annual adjustment factors that were adopted by resolution of the City Council. We also compared the population and inflation options included in the aforementioned worksheet to those that were selected by a recorded vote of the City Council.

No exceptions were noted as a result of performing this procedure.

2. For the Appropriations Limit Worksheet No. 6, we added last year’s limit to the total adjustments and compared the resulting amount to this year’s limit. We also recalculated the adjustment factors, and the adjustment for inflation and population, and compared the results to the amounts on the Appropriations Limit Worksheet No. 6.

No exceptions were noted as a result of performing this procedure.

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Honorable Mayor and Members of the City Council
City of Norco
(2)

3. We compared the prior year appropriations limit presented in the accompanying Appropriations Limit Worksheet No. 6 to the prior year appropriations limit adopted by the City Council for the prior year.

No exceptions were noted as a result of performing this procedure.

We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the accompanying Appropriations Limit Worksheet No. 6. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.

This report is intended solely for the information and use of the City Council and management of the City and is not intended to be, and should not be, used by anyone other than these specified parties.

CliftonLarsonAllen LLP
Irvine, California
October 28, 2024

CITY OF NORCO
APPROPRIATIONS LIMIT WORKSHEET NO. 6
YEAR ENDED JUNE 30, 2024
See accompanying Notes to Appropriations Limit Worksheet No. 6. (3)
Appropriations Limit for Fiscal Year Ended June 30, 2023 (see Note 2) 51,926,268 $ Adjustments Factors for the Fiscal Year Ended June 30, 2024 (see Note 2):

Inflation Population
Factor Factor Combined
(Note 3) (Note 4) Factor

1.04440000 0.99480000 1.03896912 x 0.03896912
Adjustment for Inflation and Population 2,023,521
Other Adjustments (Note 5) -
Total Adjustments 2,023,521
Appropriations Limit for Fiscal Year Ended June 30, 2024 53,949,789 $

CITY OF NORCO
NOTES TO APPROPRIATIONS LIMIT WORKSHEET NO. 6
JUNE 30, 2024
(4)
NOTE 1 PURPOSE OF AGREED UPON PROCEDURES
Under Article XIIIB of the California Constitution (the Gann Spending Limitation Initiative), California governmental agencies are restricted as to the amount of annual appropriations from the proceeds of taxes. Effective for years beginning on or after July 1, 1990, under Section 1.5 of Article XIIIB, the annual calculation of the appropriations limit is subject to agreed-upon procedures in connection with the annual audit.

NOTE 2 METHOD OF CALCULATION
Under Section 10.5 of Article XIIIB, for fiscal years beginning on or after July 1, 1990, the appropriations limit is required to be calculated based on the limit for the fiscal year 1986-87, adjusted for the inflation and population factors discussed at Notes 3 and 4 below.

NOTE 3 INFLATION FACTORS
A California governmental agency may adjust its appropriations limit by either the annual percentage change in the fourth quarter per capita personal income from the preceding year (which percentages are supplied by the State Department of Finance), or the percentage change in the local assessment roll from the preceding year due to the change of local nonresidential construction. The factor adopted by the City of Norco for the fiscal year 2023- 2024 represents the annual percentage change for per capita personal income from the preceding year.

NOTE 4 POPULATION FACTORS
A California governmental agency may adjust its appropriations limit by either the annual percentage change of the jurisdiction’s own population, or the annual percentage change in population in the county where the jurisdiction is located. The factor adopted by the City of Norco for fiscal year 2023-2024 represents the annual percentage change in population for the City of Norco.

NOTE 5 OTHER ADJUSTMENTS
A California government agency may be required to adjust its appropriations limit when certain events occur, such as the transfer of responsibility for municipal services to, or from, another government agency or private entity. The City of Norco had no such adjustments for the year ended June 30, 2024.

CITY OF NORCO, CALIFORNIA

MEASURE R TRANSACTION AND USE TAX FUND

FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2024

CITY OF NORCO, CALIFORNIA

MEASURE R TRANSACTION AND USE TAX FUND

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2024
INDEPENDENT AUDITORS’ REPORT 1

FUND FINANCIAL STATEMENTS
BALANCE SHEET 4

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE 5
NOTES TO FINANCIAL STATEMENTS 6

REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULE 9
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION 10

INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER

FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS

BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 11

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(1)
INDEPENDENT AUDITORS’ REPORT
City Council Members
City of Norco
Norco, California
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying financial statements of the Measure R Transaction and Use Tax Fund of the City of Norco, California (the City), as of and for the year ended June 30, 2024, and the related notes to the financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Measure R Transaction and Use Tax Fund of the City of Norco, California, as of June 30, 2024, and the changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City of Norco and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Emphasis of Matter
As discussed in Note 1, the financial statements present only the Measure R Transaction and Use Tax Fund and do not purport to and do not present fairly the financial position of the City of Norco as of June 30, 2024, or the changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

City Council Members
City of Norco
(2)
Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of City of Norco’s internal control. Accordingly, no such opinion is expressed.
 Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.

Required Supplementary Information
Management has omitted the management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the financial statements. Such missing information, although not a part of the financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. Our opinion on the financial statements is not affected by this missing information.

City Council Members
City of Norco
(3)
Accounting principles generally accepted in the United States of America require that the budgetary comparison schedule be presented to supplement the financial statements. Such information is the responsibility of management and, although not a part of the financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the financial statements and other knowledge we obtained during our audit of the financial statements. We do not express an opinion or provide any assurance on the required supplementary information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 2, 2025, on our consideration of the City of Norco’s internal control over the Measure R Transaction and Use Tax Fund’s financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City of Norco’s internal control over the Measure R Transaction and Use Tax Fund’s financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City of Norco’s internal control over the Measure R Transaction and Use Tax Fund’s financial reporting and compliance.

CliftonLarsonAllen LLP
Irvine, California
January 2, 2025

CITY OF NORCO

MEASURE R TRANSACTION AND USE TAX FUND

BALANCE SHEET
JUNE 30, 2024
See accompanying Notes to Financial Statements.
(4)
ASSETS
Cash and Investments $ 12,019,771
Accrued Interest Receivable 42,899
Due from Other Governments 1,436,571
Total Assets $ 13,499,241

LIABILITIES
Accounts Payable $ 858,868
Retention Payable 149,202
Total Liabilities 1,008,070

FUND BALANCE
Unrestricted:

Committed 12,491,171
Total Fund Balances 12,491,171
Total Liabilities and Fund Balance 13,499,241 $

CITY OF NORCO

MEASURE R TRANSACTION AND USE TAX FUND

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE YEAR ENDED JUNE 30, 2024
See accompanying Notes to Financial Statements.
(5)

REVENUES
Taxes $ 7,976,735
Investment Earnings 688,358
Total Revenues 8,665,093

EXPENDITURES
Current:

General Government 5,475
Public Works 517,288
Capital Outlay 9,676,713
Total Expenditures 10,199,476
NET CHANGE IN FUND BALANCE (1,534,383)
Fund Balance - Beginning of Year 14,025,554
FUND BALANCE - END OF YEAR $ 12,491,171

CITY OF NORCO

MEASURE R TRANSACTION AND USE TAX FUND

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
(6)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accompanying financial statements are intended to reflect the fund balance and net change in fund balance attributable to the Measure R Transaction and Use Tax Fund of the City of Norco, California (the City). These financial statements are exclusively for Measure R Transaction and Use Tax Fund and do not purport to, and do not, present fairly the financial position and changes in the financial position of the City.

The Measure R Transaction and Use Tax Fund is a component of the City’s General Fund and is used to account for the collection and use of Measure R transaction and use tax revenue. Measure R is the City of Norco’s one-cent transaction and use tax that was approved by voters on the November 6, 2018, ballot. Measure R funds are to be used for investment in infrastructure and vital services. Measure R allows the City of Norco to preserve its quality of life, and restore deteriorating streets, trails, parks, facilities, and equestrian amenities. Measure R will also prevent additional cuts to the City of Norco’s public safety services in order to maintain safe levels of sheriff and fire protection without risking emergency response times. With the approval of Measure R, the sales tax rate in the City of Norco increased by 1%, from 7.75% to 8.75% effective April 1, 2019.

Basis of Presentation
The Measure R Transaction and Use Tax Fund financial statements are prepared in accordance with accounting principles generally accepted in the United States of America.

The Governmental Accounting Standards Board (GASB) is the acknowledged standard setting body for establishing accounting and financial reporting standards followed by governmental entities in the United States of America.

Measurement Focus, Basis of Accounting, and Financial Statement Presentation Governmental fund financial statements are presented using the current financial resources measurement focus and the modified accrual basis of accounting. Accordingly, only current assets, deferred outflows of resources, current liabilities and deferred inflows of resources are included on the balance sheet. The statement of revenues, expenditures and changes in fund balance presents increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in fund balance. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period.

Revenues are recorded when received in cash, except that revenues subject to accrual (generally these received within 60 days after year-end) are recognized when due.

Expenditures are recorded in the accounting period in which the related fund liability is incurred.

CITY OF NORCO

MEASURE R TRANSACTION AND USE TAX FUND

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
(7)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Fund Balance and Flow Assumptions
The Measure R Transaction and Use Tax Fund financial statements report the following unrestricted fund balance classifications:
 Committed – Includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the government’s highest authority, City Council. The formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is through resolution.

When the components of unrestricted fund balance can be used for the same purpose, it is the City’s policy to consider all committed, assigned, and unassigned amounts when determining which classification to apply to an expenditure.

Cash and Investments
Investments are reported in the accompanying financial statements at fair value, which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Changes in fair value that occur during a fiscal year are recognized in investment earnings for that fiscal year.

Investment earnings include interest earnings, changes in fair value (realized/unrealized), gains or losses realized upon the liquidation, and maturity or sale of investments.

Cash and investments are pooled with other City funds for investment purposes, with interest being allocated quarterly to various funds based on each fund’s prior month-end cash and investment balance.

Estimates
The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

CITY OF NORCO

MEASURE R TRANSACTION AND USE TAX FUND

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2024
(8)
NOTE 2 CASH AND INVESTMENTS
Equity in the Cash and Investment Pool of the City of Norco The Measure R Transaction and Use Tax Fund has no separate bank accounts or investments other than its equity in the cash and investment pool managed by the City. The Measure R Transaction and Use Tax Fund is a voluntary participant in that pool. This pool is governed by and under the regulatory oversight of the Investment Policy adopted by the City Council of the City. The Measure R Transaction and Use Tax Fund has not adopted an investment policy separate from that of the City. The fair value of the Measure R Transaction and Use Tax Fund’s investment in this pool is reported in the accompanying financial statements at amounts based upon the Measure R Transaction and Use Tax Fund’s pro rata share of the fair value calculated by the City for the entire City portfolio. The balance available for withdrawal is based on the accounting records maintained by the City, which are recorded at the estimated fair value.

Disclosures Relating to the Investment Policy, Interest Rate Risk, Credit Risk and Custodial Credit Risk
Additional disclosures related to the investment policy, interest rate risk, credit risk and custodial credit risk are available in the City of Norco’s Annual Comprehensive Financial Report.

Fair Value Measurements
The Measure R Transaction and Use Tax Fund categorizes its fair value measurements within the fair value hierarchy established by accounting principles generally accepted in the United States of America. The hierarchy is based on the valuation inputs used to measure the fair value of the investments. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are quoted prices for similar assets in active markets; and Level 3 inputs are significant unobservable inputs.

The Measure R Transaction and Use Tax Fund’s investment in the City investment pool is not subject to the fair value hierarchy.

CITY OF NORCO

MEASURE R TRANSACTION AND USE TAX FUND

BUDGETARY COMPARISON SCHEDULE
YEAR ENDED JUNE 30, 2024
See accompanying Note to Required Supplementary Information. (9)
Variance
with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
FUND BALANCE - BEGINNING OF YEAR $ 14,025,554 14,025,554 $ 14,025,554 $ - $

RESOURCES (INFLOWS)
Taxes 8,463,000 8,463,000 7,976,735 (486,265)
Investment Earnings 175,000 175,000 688,358 513,358
Amount Available for Appropriations 8,638,000 8,638,000 8,665,093 27,093

CHARGES TO APPROPRIATIONS (OUTFLOWS)
General Government 11,400 11,400 5,475 5,925
Public Works 600,000 600,000 517,288 82,712
Capital Outlay 20,434,941 15,204,700 9,676,713 10,758,228 Total Charges to Appropriations 15,816,100 21,046,341 10,199,476 10,846,865 Excess of Resources Over (Under)
Charges for Appropriations (7,178,100) (12,408,341) 10,873,958 (1,534,383) FUND BALANCE - END OF YEAR $ 1,617,213 6,847,454 $ 12,491,171 $ 10,873,958 $

CITY OF NORCO

MEASURE R TRANSACTION AND USE TAX FUND

NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2024
(10)
NOTE 1 BUDGETARY ACCOUNTING
The budget for the Measure R Transaction and Use Tax Fund is formally adopted annually and is prepared in accordance with accounting principles generally accepted in the United States of America. The budget is monitored to ensure compliance with legal provisions embodied in the appropriated budget as approved or amended by the City Council throughout the year. Department heads are responsible for monitoring their department’s appropriated budget. The legal level of budgetary control is at the fund level. The City’s management may transfer resources between operating line items within a department in the same fund as they see appropriate. Encumbrances (e.g., purchase orders, contracts) outstanding at year-end are included in the restricted fund balance since they do not constitute expenditures or liabilities.

CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.

CliftonLarsonAllen LLP
CLAconnect.com
(11)
INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL

REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT

OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE

WITH GOVERNMENT AUDITING STANDARDS
City Council Members
City of Norco
Norco, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the City of Norco, California (the City) including the Measure R Transaction and Use Tax Fund of the City of Norco, as of and for the year ended June 30, 2024 and the related notes to the financial statements, which collectively comprise the Measure R Transaction and Use Tax fund’s financial statements, and have issued our report thereon dated January 2, 2025.

Report on Internal Control over Financial Reporting
In planning and performing our audit of the Measure R Transaction and Use Fund’s financial statements, we considered the City’s internal control as it relates to the Measure R Transaction and Use Tax Fund’s financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the Measure R Transaction and Use Tax Fund’s financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control related to the Measure R Transaction and Use Tax Fund. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control related to the Measure R Transaction and Use Fund.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the Measure R Transaction and Use Tax Fund’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses, or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.

City Council Members
City of Norco
(12)
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Measure R Transaction and Use Tax Fund’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance related to the Measure R Transactions and Use Tax Fund. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control related to the Measure R Transactions and Use Tax Fund.

Accordingly, this communication is not suitable for any other purpose.

CliftonLarsonAllen LLP
Irvine, California
January 2, 2025

City Council

STAFF REPORT
Date: February 5, 2025 Agenda Item:

3.D.

To: Honorable Mayor and City Council Members
From: Daphne Liu, Interim Finance Director
Prepared By: Julie Houser, Admin Analyst
Department: Finance
SUBJECT:

Resolution Making Findings and Continuing Existing Benefit Assessment Rates (BAU) for Maintaining Flood Control Channels within County Service Area CSA-152 for Fiscal Years 2025-26 through 2027-28
RECOMMENDATION:

Adopt Resolution 2025-01, making findings and continuing existing Benefit Assessment Rates (BAU) for maintaining flood control channels within County Service Area CSA152 for Fiscal Years (FY) 2025-26 through 2027-28.

SUMMARY:

Riverside County requires a resolution authorizing the County to levy a County Service Area (CSA) parcel charge. The proceeds of the charge are used to maintain and operate the City’s storm drains and flood control channels into the Santa Ana River. The requirements of Prop. 218 are not applicable for this service area assessment since the City will continue the existing annual rate of $10 per benefit assessment unit for maintaining flood control channels within County Service Area CSA-152 for Fiscal Years 2025-26 through 2027-28.

BACKGROUND:

County Service Area (CSA) 152 was formed and established pursuant to Riverside County Ordinance number 573 in November 1991 to establish a funding mechanism to meet the permit requirements for the unincorporated portions of the County.

Municipalities were also permitted to annex into CSA 152. The City Council entered into an agreement with the County of Riverside on April 6, 1994, to participate in the County Service Area 152 to facilitate collection of funds in implementing the federally mandated National Pollution Discharge Elimination System (NPDES) program. Riverside County requires a resolution authorizing the County to levy a County Service Area (CSA) parcel charge. The proceeds of the charge are used to maintain and operate the City’s storm drains and flood control channels into the Santa Ana River. The requirements of Prop.

218 for this service area assessment does not apply based on an excerpt from Prop. 218:

Section 5, Paragraph (a) of Proposition 218 reads as follows:
“Section 5. Effective Date. Pursuant to subdivision (a) of Section 10 of Article II, the provisions of this article shall become effective the day after the election unless otherwise provided. Beginning July 1, 2001, all existing, new, or increased assessments shall comply with this article. Notwithstanding the foregoing, the following assessments existing on the effective date of this article shall be exempt from the procedures and approval process set forth in Section 4:
(a) Any assessment imposed exclusively to finance the capital costs or maintenance and operation expenses for sidewalks, streets, sewers, water, flood control, drainage systems or vector control. Subsequent increases in such assessments shall be subject to the procedures and approval process set forth in Section 4...”
The City Attorney supports a “declaration of exemption” for Norco in this case because the assessment was established before November 6, 1996, the annual assessment rate is not increasing, and is used exclusively for flood control purposes, an exempt category under Section 5 (a).

In 2016, the City negotiated a contract with Albert A. Webb Associates to provide a parcel audit and administration of the CSA-152 beginning in FY 2016-2017. Through the audit, the contractor identified all properties within the special district boundaries and generated a list of parcels to be added to the database. This audit also recommended increasing the rates to the maximum amount allowed to ensure that substantial portion of the costs to comply with NPDES permit requirements is funded with revenues derived from the CSA assessments. The recommended adjustments were implemented from FY 2017-18 through FY 2019-20. As a result, the Benefit Assessment Unit rate for FY 2025-26 through FY 2027-28 is the maximum amount allowed, $10. The County of Riverside will accept a multi-year resolution as is being proposed.

FISCAL IMPACT:

The proposed assessment will generate approximately $133,000 annually for Fiscal Years 2025-26 through FY 2027-28 for the NPDES Fund.

RELATIONSHIP TO STRATEGIC PLAN:

This item is consistent with Strategic Direction #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:

Certified as to Availability of Funds: Daphne Liu, Finance Director Approved by: Lisette Free, Interim City Manager
Approved as to Form: Harper and Burns, LLP, City Attorney

ATTACHMENT(S):

Reso No 2025-01 - CSA 152

RESOLUTION NO. 2025-01

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NORCO,

CALIFORNIA, MAKING FINDINGS AND CONTINUING EXISTING

BENEFIT ASSESSMENT RATES (BAU) FOR MAINTAINING FLOOD
CONTROL CHANNELS WITHIN COUNTY SERVICE AREA CSA-152
WHEREAS, the City of Norco (“City”) is a co-permittee of the National Pollution Discharge Elimination System (“NPDES”) Permit No. CSA-618033 for Municipal Separate Storm Sewer System discharges with the County of Riverside and the incorporated cities therein; and
WHEREAS, the City must have a valid NPDES Permit in order to discharge runoff from properties within the boundaries of the City through its storm drain and flood control channels directly into the Santa Ana River or through Riverside County’s channels into the Santa Ana River; and
WHEREAS, under the NPDES Permit, the City is required to regulate discharges of urban runoff, prevent unauthorized and potentially hazardous discharges into Waters of the United States, and carry out programs and activities to maintain compliance with the NPDES Permit; and
WHEREAS, the City uses revenues from the CSA-152-Norco assessments solely for the purpose of maintaining and operating the City’s storm drain and flood control system, including complying with the Permit.

NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Norco, California, as follows:

SECTION 1: Based upon the facts set forth herein, the City Council finds that CSA-152-Norco charges are assessments that confer benefits upon each parcel of property subject to the assessments. Pursuant to Section 5(a) of Article XIIID of the California Constitution, the CSA-152-Norco assessments are not applicable from the procedures and approval process of Section 4 of Article XIIID of the California Constitution because CSA-152-Norco assessments existed before November 6, 1996, the annual assessment rate is not increasing, and the assessments are imposed exclusively to finance the capital costs and maintenance and operation expenses for the flood control and drainage system in the City.

SECTION 2: The City Council entered into an agreement with the County of Riverside on April 6, 1994 to participate in the County Service Area 152 to facilitate collection of funds in implementing the federally mandated NPDES program. A yearly rate of $5.78 per benefit assessment unit was added to residents’ property tax bill following a public hearing on May 18, 1994. Beginning in Fiscal Year (FY) 2017-18, the City, upon approval by the City Council, increased the rate gradually over two years with the final increase of $10 presented for FY 2019-20.

SECTION 3: The City Council elects to continue existing annual rate of $10.00 per benefit assessment unit for Fiscal Years 2025-26 through FY 2027-28.

Resolution 2025-01 – Maintaining Flood Control Channels in CSA-152

February 5, 2025
PASSED AND ADOPTED by the City Council of the City of Norco, California, at a regular meeting held February 5, 2025.

Greg Newton, Mayor
City of Norco, California
ATTEST:

Dana Roa, CMC, City Clerk
City of Norco, California
I, Dana Roa, CMC, City Clerk of the City of Norco, California, do hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of Norco, California, at a regular meeting thereof held on February 5, 2025 by the following vote of the City Council:

AYES:

NOES:

ABSENT:

ABSTAIN:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the City of Norco, California on February 5, 2025.

Dana Roa, CMC, City Clerk
City of Norco, California

City Council

STAFF REPORT
Date: February 5, 2025 Agenda Item:

3.E.

To: Honorable Mayor and City Council Members
From: Daphne Liu, Interim Finance Director
Prepared By: Daphne Liu, Interim Finance Director
Department: Finance
SUBJECT:

Quarterly Investment Report for Quarter Ended December 31, 2024 RECOMMENDATION:

Receive and file the Quarterly Investment Report for the Quarter Ended December 31, 2024.

SUMMARY:

The Quarterly Investment Report for the quarter ending December 31, 2024, has been prepared to meet the requirements of the City’s Investment Policy and applicable sections of the State of California Government Code.

BACKGROUND:

The City’s Investment Policy requires the Treasurer to render a quarterly report to the legislative body. The report is to be prepared in accordance with Government Code Section 53646(b)(1) and should contain detailed information on all securities, investments, and monies of the local agency; a statement of compliance of the portfolio with the Statement of Investment Policy; and a statement of the City’s ability to meet its cash flow requirements for the next six months. This report, which is for the quarter ended December 31, 2024, meets the requirements of the Investment Policy and Government Code. It covers funds of the City and the Successor Agency to the former Norco Redevelopment Agency.

The attached schedules (attachments 1 through 4) have been prepared to meet the detailed requirements of the Government Code and the City’s Investment Policy as approved by the Council on April 17, 2024. It is to be noted that the Investment Policy excludes certain investments (bond proceeds) from these requirements. This means that bond proceeds are invested in accordance with the provisions of the bond indentures rather than the provisions of the Investment Policy. Consequently, in determining whether the operating portfolio holdings are in compliance with the

Government Code and the approved Investment Policy, investments of bond proceeds have been excluded.

Attachment 1 provides a summary schedule of the City’s operating portfolio holdings by type as of December 31, 2024. This summary also provides information on whether or not each investment category complies with the limitations imposed by State law and the City’s Investment Policy. Investments that are subject to the Statement of Investment Policy are operating or idle funds invested by the Treasurer within the provisions of the approved Investment Policy. During the quarter ended December 31, 2024, the operating portfolio increased by a net amount of $2.8 million from $86.5 million to $89.3 million.

Traditionally, revenue receipts during second quarter of the fiscal year are not sufficient to cover expenditures due to the lag in the receipt of property tax, vehicle license fees, sales tax in lieu, electric and gas franchise fee revenues. However, this quarter that trend reversed mainly due to Sales Tax and Measure R transactions and use tax revenues received during the period exceeded expenditures.

A summary of investments not subject to the provisions of the Investment Policy (bond proceeds and debt service reserve funds) is also shown on Attachment 1. These funds are invested in accordance with applicable bond indenture provisions. During the quarter ended December 31, 2024, bond proceeds and debt service reserve fund portfolio decreased by a net amount of $2.3 million from $9.2 million to $6.9 million due to debt service payments.

Attachment 2 provides a graphical breakdown of the operating portfolio holdings by investment type as of December 31, 2024. This chart is for investments that are subject to the Investment Policy. The operating portfolio consisted of 25.2% investment in the State of California Local Agency Investment Fund (LAIF), 41.3% in the CA Management Plan pool (CAMP), 22.9% in Agency Securities, and the remaining 10.6% in cash.

Attachment 3 provides a detailed listing of the City’s portfolio holdings as required by the Government Code. In this listing, “N/A” is used to denote that the information is either not available or applicable. Agency Securities issued by United States Government Sponsored Entities (GSEs) are rated “AA+” by Moody’s rating service and “AAA” by S&P Global rating service.

Attachment 4 indicates cash balances by Fund as additional information to complement the schedule of investment holdings. For the Operating Funds, the cash balance provides an indication of the financial health of each Fund.

CASH FLOWS: Based on cash balances as of December 31, 2024, and anticipated cash receipts for the next six months, staff estimates that there will be sufficient cash to cover disbursements for the City and Successor Agency for the next six months ending June 30, 2025.

FISCAL IMPACT:

Not applicable for this item.

RELATIONSHIP TO STRATEGIC PLAN:

This item is consistent with Strategic Direction #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:

Certified as to Availability of Funds: Daphne Liu, Finance Director Approved by: Lisette Free, Interim City Manager
Approved as to Form: Harper and Burns, LLP, City Attorney ATTACHMENT(S):

Attachment #1
Attachment #2
Attachment #3
Attachment #4
Attachment #5 - Certification Form

Attachment 1
City of Norco, California
Portfolio Summary
As of December 31, 2024
City Investments Subject to Investment Policy Market Value Percentage Policy Maximum ComplianceCash 9,470,591 $ 10.59% NA In ComplianceLocal Agency Investment Fund 22,575,462 25.26% 100% In ComplianceCAMP 36,876,097 41.27% 100% In ComplianceU.S. Government Agency Securities 20,433,336 22.87% 100% In Compliance Total 89,355,485 $ 100.00%

4.380%
City Investments Not Subject to Investment Policy Market Value PercentageCommunity Facilities Districts 1,808,644 $ 26.04%Sewer and Water System 19,943 0.29%Refunding Tax Allocation Bonds 5,116,686 73.67% Total 6,945,273 $ 100.00%

0.721%
Estimated Portfolio YieldEstimated Portfolio Yield

Attachment 2

BEGINNING AND ENDING VALUES BREAKDOWN OF INVESTMENTS
Beg. Market Values Ending Market Values
Breakdown 9/30/2024 12/31/2024 Investments Subject to Investment Policy Portfolio % Rating Cash 9,369,065 9,470,591 Local Agency Investment Fund 22,575,462 25.26% Not Rated Local Agency Investment Fund 23,233,043 22,575,462 Federal Home Loan Banks 20,433,336 22.87% AAA California Asset Management Plan 33,784,612 36,876,097 CA Asset Management Plan 36,876,097 41.27% AAAm U.S. Government Agency Securities 20,139,770 20,433,336 Wells Fargo Checking Account 4,431,430 4.95% Not Rated Total Market Value 86,526,490 89,355,485 US Bank Principal Cash 5,039,161 5.64% Not Rated TOTAL 89,355,485 100%

SUMMARY OF CITY OF NORCO'S PORTFOLIO

INVESTMENTS SUBJECT TO INVESTMENT POLICY
Not Rated
36%
Rated
64%
By Rating
< 1 year
77%
1‐3 years
7%
> 3 years
16%
By Maturity (Years)
Local
Agency
Investment
Fund
25%
Federal
Home Loan
Banks
23%
CA Asset
Management
Plan
41%
Cash and
Cash
Equivalents
11%
By Type

Attachment 3 Page 1
City of Norco, California
Portfolio Details
As of December 31, 2024
Investments Subject to Policy
Cash & Cash EquivalentsPurchase Date Maturity Date CUSIP # Description of Security Investment
Policy Account Rating
Coupon
Rate
Yield to
Maturity Face Value Cost Market Value
N/A N/A N/A Checking Accounts N/A Wells Fargo N/A N/A 0.00% N/A 4,431,430 4,431,430 N/A N/A N/A Principal Cash N/A US Bank N/A N/A 0.00% N/A 5,039,161 5,039,161 Subtotal 9,470,591 9,470,591
Local Agency Investment Fund
Purchase Date Maturity Date CUSIP # Description of Security Investment
Policy Account Rating
Coupon
Rate
Yield to
Maturity Face Value Cost Market Value
N/A N/A N/A Local Agency Investment Fund XI.15 State of California N/A N/A N/A N/A 22,658,936 22,575,462 Subtotal 22,575,462 22,658,936
California Asset Management Plan
Purchase Date Maturity Date CUSIP # Description of Security Investment
Policy Account Rating
Coupon
Rate
Yield to
Maturity Face Value Cost Market Value
N/A N/A N/A California Asset Management Plan XI.13 CA Joint Powers Au N/A N/A N/A N/A 35,000,000 36,876,097 Subtotal 36,876,097 35,000,000
US Bank Custodial Account
10/22/24 10/22/29 3130B3BB8 Federal Home Loan Banks XI.5 US Bank AAA 5.000% 5.013% 3,100,000 3,100,000 3,092,033 09/30/24 09/26/29 3130B2Y41 Federal Home Loan Banks XI.5 US Bank AA+ 4.100% 4.139% 5,364,142 5,364,142 5,313,389 01/26/24 01/26/28 3130AYPJ9 Federal Home Loan Banks XI.5 US Bank AA+ 4.500% 4.508% 6,000,000 6,000,000 5,984,040 04/09/24 04/09/26 3130B0SH3 Federal Home Loan Banks XI.5 US Bank AA+ 5.080% 5.072% 2,700,000 2,700,000 2,704,428 08/20/24 08/10/29 3130B2FW0 Federal Home Loan Banks XI.5 US Bank AA+ 4.250% 4.326% 3,400,000 3,400,000 3,339,446 20,433,336 20,564,142
Total Investments Subject to Policy 89,355,485 87,693,669

Attachment 3 Page 2
City of Norco, California
Portfolio Details
As of December 31, 2024
Investments Not Subject to Policy (Bond Proceeds)Community Facilities Districts Cash and Cash EquivalentsPurchase Date Maturity Date CUSIP # Description of Security Investment
Policy Account Rating
Coupon
Rate
Yield to
Maturity Face Value Cost Market Value
N/A N/A 9AMMF05B2 US Bank Money Market XI.11 US Bank N/A N/A 0.005% N/A 65,889 65,889N/A N/A 9AMMF05B2 US Bank Money Market XI.11 US Bank N/A N/A 0.005% N/A 179 179N/A N/A 9AMMF05B2 US Bank Money Market XI.11 US Bank N/A N/A 0.005% N/A 37,445 37,445N/A N/A 9AMMF05B2 US Bank Money Market XI.11 US Bank N/A N/A 0.005% N/A 112 112N/A N/A 31846V203 First American Government XI.11 US Bank AAA N/A 4.082% N/A 583 583N/A N/A 31846V203 First American Government XI.11 US Bank AAA N/A 4.082% N/A 16,555 16,555N/A N/A 31846V203 First American Government XI.5 US Bank AAA N/A 4.082% N/A 219,811 219,811 Subtotal 340,575 340,575
Local Agency Investment Fund
Purchase Date Maturity Date CUSIP # Description of Security Investment
Policy Account Rating
Coupon
Rate
Yield to
Maturity Face Value Cost Market Value
N/A N/A N/A Local Agency Investment Fund (CFD 2002-1) XI.13 State of California N/A N/A N/A N/A 62,297 62,527 Subtotal 62,297 62,527
U.S. and Agency Securities
Purchase Date Maturity Date CUSIP # Description of Security Investment
Policy Account Rating
Coupon
Rate
Yield to
Maturity Face Value Cost Market Value
08/27/20 8/27/2025 3136G4Q97 F H L M C M T N XI.5 US Bank AAA 0.650% 0.666% 1,440,000 1,440,000 1,405,771 1,440,000 1,440,000 1,405,771
Total Community Facilities Districts 1,808,644 1,843,103 Investments Not Subject to Policy (Bond Proceeds)Sewer and Water System Cash and Cash EquivalentsPurchase Date Maturity Date CUSIP # Description of Security Investment
Policy Account Rating
Coupon
Rate
Yield to
Maturity Face Value Cost Market Value
N/A N/A 31846V203 First American Government XI.11 US Bank AAA N/A 4.082% N/A 291 291 N/A N/A 31846V203 First American Government XI.11 US Bank AAA N/A 4.082% N/A 17,836 17,836 N/A N/A 31846V203 First American Government XI.11 US Bank AAA N/A 4.082% N/A 1,810 1,810 N/A N/A 31846V203 First American Government XI.11 US Bank AAA N/A 4.082% N/A 7 7 Subtotal 19,943 19,943
Total Sewer and Water System 19,943 19,943

Attachment 3 Page 3
City of Norco, California
Portfolio Details
As of December 31, 2024
Investments Not Subject to Policy (Bond Proceeds)Refunding Tax Allocation Bonds Cash & Cash EquivalentsPurchase Date Maturity Date CUSIP # Description of Security Investment
Policy Account Rating
Coupon
Rate
Yield to
Maturity Face Value Cost Market Value
N/A N/A 31846V401 First American Government Obligation XI.11 US Bank N/A N/A 3.932% N/A 129,249 129,249 N/A N/A 31846V401 First American Government Obligation XI.11 US Bank N/A N/A 3.932% N/A 392 392 N/A N/A 31846V401 First American Government Obligation XI.11 US Bank N/A N/A 3.932% N/A 51,945 51,945 N/A N/A 31846V401 First American Government Obligation XI.11 US Bank N/A N/A 3.932% N/A 826 826 N/A N/A 31846V401 First American Government Obligation XI.11 US Bank N/A N/A 3.932% N/A 7,121 7,121 N/A N/A 9AMMF05B2 US Bank Money Market XI.11 US Bank N/A N/A 0.005% N/A 95 95 N/A N/A 9AMMF05B2 US Bank Money Market XI.11 US Bank N/A N/A 0.005% N/A 33,068 33,068 N/A N/A 9AMMF05B2 US Bank Money Market XI.11 US Bank N/A N/A 0.005% N/A 27 27 N/A N/A 9AMMF05B2 US Bank Money Market XI.11 US Bank N/A N/A 0.005% N/A 3,949 3,949 N/A N/A 9AMMF05B2 US Bank Money Market XI.11 US Bank N/A N/A 0.005% N/A 56,349 56,349 N/A N/A 9AMMF05B2 US Bank Money Market XI.11 US Bank N/A N/A 0.005% N/A 12 12 N/A N/A 9AMMF05B2 US Bank Money Market XI.11 US Bank N/A N/A 0.005% N/A 15 15 N/A N/A 9AMMF05B2 US Bank Money Market XI.11 US Bank N/A N/A 0.005% N/A 35,585 35,585 N/A N/A 9AMMF05B2 US Bank Money Market XI.11 US Bank N/A N/A 0.005% N/A 107,425 107,425 N/A N/A 9AMMF05B2 US Bank Money Market XI.11 US Bank N/A N/A 0.005% N/A 78 78 N/A N/A 9AMMF05B2 US Bank Money Market XI.11 US Bank N/A N/A 0.005% N/A 69 69 N/A N/A 9AMMF05B2 US Bank Money Market XI.11 US Bank N/A N/A 0.005% N/A 1,973,095 1,973,095 N/A N/A Princial Cash XI.11 US Bank N/A N/A 0.000% N/A - - Subtotal . 2,399,301 2,399,301
Local Agency Investment Fund
Purchase Date Maturity Date CUSIP # Description of Security Investment
Policy Account Rating
Coupon
Rate
Yield to
Maturity Face Value Cost Market Value
N/A N/A N/A Local Agency Investment Fund (2010 TABs) XI.13 State of California N/A N/A N/A N/A 26,189 26,092 N/A N/A N/A Local Agency Investment Fund (2003 TABs) XI.13 State of California N/A N/A N/A N/A 119,389 118,949 Subtotal 145,041 145,578
U.S. and Agency Securities
Purchase Date Maturity Date CUSIP # Description of Security Investment
Policy Account Rating
Coupon
Rate
Yield to
Maturity Face Value Cost Market Value
05/26/21 05/26/26 3130AMG63 Federal Home Loan Banks XI.5 US Bank AAA 0.500% 0.521% N/A 1,040,000 998,223 05/26/21 05/26/26 3130AMG63 Federal Home Loan Banks XI.5 US Bank AAA 0.500% 0.521% N/A 1,055,000 1,012,62105/26/21 05/26/26 3130AMG63 Federal Home Loan Banks XI.5 US Bank AAA 0.500% 0.521% N/A 585,000 561,501 Subtotal 2,572,344 2,680,000
Total Refunding Tax Allocation Bonds 5,116,686 5,224,878 Total Investments Not Subject to Policy 6,945,273 7,087,924

Attachment 4
City of Norco, California
Portfolio Details by Fund
As of December 31, 2024
Investments Subject to Policy Qtr ended
12/31/24
Fund Description Balance
012 Successor Agency Project Fund 144,890
016 Cal Home Grant Fund 194,383
017 Successor Agency Fund 1,920,875
018 Housing Fund 4,584,358
121 General Fund 27,144,804
122 Miscellaneous Grants Fund 121,264
123 CDBG Fund (785)
124 Water Fund 4,566,022
126 Sewer Fund 844,202
127/132 Measure R Fund 13,753,466
128 Equipment Replacement Fund 4,337,553
129 Storm Drain Fund 212,046
131 Nancy Newman Fund 48,861
133 Gas Tax Fund 10,564
134 Benefits and Insurance Fund 502,799
135 Information Technology Fund 1,174,247
136 SB1 Road Maintenance & Rehab. Fund 546,836
137 Measure A Fund 1,791,562
139 NPDES Fund (69,621)
140 General Govt Improvement Fund 471,138
141 Park Improvement Fund 4,249,059
142 Fire Improvement Fund 695,977
143 Trail Improvement Fund 206,135
144 Water Capital Fund 3,761,264
146 Public Meeting Facilities Fund 251,523
147 Sewer Facilities Fund 11,352,474
149 Street Improvement Fund 949,412
151 Animal Control Fund 31,946
152 Facility Improvement Fund 131,298
154 Trust Deposit Fund 492,865
156 AQMD Fund 8,085
158 Waste Management Fund (130,497)
162 Supplemental Law Grant Fund 119,663
166 Recyled Water Fund 2,741,014
181 CFD 97-1 215,658
182 CFD 2001-1 857,042
183 CFD 2002-1 160,212
179 LMD #1 (11,284)
176 LMD #2 (78,778)
177 LMD #3 (35,539)
186 LMD #4 143,785
187 LMD #5 61,947
Subtotal - General Ledger 88,472,723
Various Outstanding Checks/Deposits in Transit 882,761
Total Cash and Investments 89,355,485

Attachment 5
Quarterly Investment Portfolio
For the Quarter Ended December 31, 2024
As required by the Government Code, the Treasurer certifies that the investments reported in the accompanying schedules (Attachments 1 through 4) comply with the City of Norco Investment Policy and that sufficient liquidity along with anticipated revenues are available to meet the City and Successor Agency budgeted expenditure requirements for the next six months ending June 30, 2025. ___________________________ February 5, 2025__________
Daphne Liu, Acting Finance Director Date

City Council

STAFF REPORT
Date: February 5, 2025 Agenda Item:

3.F.

To: Honorable Mayor and City Council Members
From: Lisette Free, Interim City Manager
Prepared By: Daphne Liu, Interim Finance Director
Department: Finance
SUBJECT:

Quarterly Purchase Orders Listing Between $25,000 to $49,999 RECOMMENDATION:

Receive and file the Quarterly Purchase Orders Listing for the Quarter Ended December 31, 2024.

SUMMARY:

Quarterly review of purchase orders that fall under the City Manager's approval threshold of $25,000 - $49,999.

BACKGROUND:

On August 21, 2024, City Council discussed the approval authority granted to the City Manager under the City's purchasing ordinance and approved that an itemized list of Purchase Orders that fall under the City Manager's approval threshold of $25,000 - $49,999 be brought to City Council for review quarterly.

For Quarter Ended December 31, 2024, there were five purchase orders between the amount of $25,000 and $49,999 - see attachment.

FISCAL IMPACT:

There is no fiscal impact for this item as these purchase orders are included in the FY 2024-25 Operating and Capital Improvement Program Budgets.

RELATIONSHIP TO STRATEGIC PLAN:

This item is consistent with Strategic Direction #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:

Certified as to Availability of Funds: Daphne Liu, Finance Director Approved by: Lisette Free, Interim City Manager
Approved as to Form: Harper and Burns, LLP, City Attorney ATTACHMENT(S):

Qtr. 2 Purchase Oder Listing $25K -$49,999

PO Number Date Amount Department Description
Purchase Order 2025-00000110 G/L Date 11/21/2024 40,035.43 IT SHI INTERNATIONAL CORP‐ Backup System Appliance and SubscriptionPurchase Order 2025-00000092 G/L Date 10/29/2024 32,623.91 F&M IPC INDUSTRIES INC ‐ Replacement Shuttle for aging shuttles at Ingalls Event CenterPurchase Order 2025-00000097 G/L Date 10/29/2024 36,817.00 F&M PBK ARCHITECTS INC ‐ Professional Architectural/Engineering Design ServicesPurchase Order 2025-00000111 G/L Date 11/26/2024 33,560.00 PW INLAND POTABLE SERVICES, INC. ‐  Reservoir Cleaning and InspectionPurchase Order 2025-00000122 G/L Date 10/01/2024 27,083.22 PW CLA‐VAL ‐ Preventative Maintenance ‐ Multiple Locations Total Count: 5
Purchase Order Report
G/L Date Range 10/01/24 - 12/31/24
Sort by Department - Purchase Order Number
Detail Listing
Run by Daphne Liu on 01/14/2025 12:54:35 PM Page 1 of 1

City Council

STAFF REPORT
Date: February 5, 2025 Agenda Item:

3.G.

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

Appointments to the Southern California Association of Governments (SCAG) General Assembly Meeting to be Held on May 2, 2025.

RECOMMENDATION:

Adopt Resolution No. 2025-02, appointing Council Member Kevin Bash as the delegate and Mayor Greg Newton as the alternate for the Southern California Association of Governments General Assembly Meeting on May 2, 2025.

SUMMARY:

The Southern California Association of Governments (SCAG) General Assembly meeting will be held in May of 2025 and, as a member of SCAG, the City Council is requested to appoint a delegate and alternate to represent the City of Norco at this annual meeting.

BACKGROUND:

SCAG will be holding its General Assembly meeting on May 2, 2025 in Desert Hot Springs, California. SCAG’s Regional Conference and General Assembly is where more than 900 local leaders throughout Southern California convene to discuss the question of how to maximize opportunities and meet the challenges of a region that is expected to add four million people over the next 25 years. Each year, SCAG’s member cities select a delegate and alternate to represent their city to participate in this annual meeting. The City’s representative will have the opportunity to propose any policy matter for determination by the General Assembly or to propose revisions to the SCAG Bylaws.

Council Member Kevin Bash has been recommended as the delegate and Mayor Greg Newton as the alternate. Following approval, the City Clerk will submit the fully executed Resolution to SCAG.

FISCAL IMPACT:

No financial impact as a result of this action.

RELATIONSHIP TO STRATEGIC PLAN:

This item is consistent with Strategic Direction #4.Communication and Stakeholder Experience: Enhance the stakeholder experience, engage the community, and build brand awareness through proactive, effective and consistent communication.

REVIEWED AND APPROVED BY:

Certified as to Availability of Funds: Daphne Liu, Finance Director Approved by: Lisette Free, Interim City Manager
Approved as to Form: Harper and Burns, LLP, City Attorney ATTACHMENT(S):

Reso No 2025-02_SCAG General Assembly Appointments 2025

RESOLUTION NO. 2025-02

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NORCO,

CALIFORNIA, APPOINTING ONE DESIGNEE AND ONE ALTERNATE

TO THE SOUTHERN CALIFORNIA ASSOCIATION OF
GOVERNMENTS 2025 REGIONAL CONFERENCE AND GENERAL

ASSEMBLY
WHEREAS, the annual Southern California Association of Governments (SCAG) Regional Conference and General Assembly is where more than 900 local leaders throughout Southern California convene to address regional issues and maximize opportunities; and
WHEREAS, the City of Norco is recommended to appoint representatives to SCAG’s General Assembly, scheduled May 2, 2025, to propose any policy matter for determination by the General Assembly or to propose revisions to the SCAG Bylaws; and
WHEREAS, on February 5, 2025 the City Council appointed Council Member Kevin Bash as the City’s delegate and Mayor Greg Newton as the City’s alternate for the SCAG 2025 General Assembly.

NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Norco of the following:

1. Council Member Kevin Bash shall serve as the City’s delegate for SCAG’s 2025 General Assembly; and

2. Mayor Greg Newton shall serve as the City’s alternate delegate for SCAG’s 2025 General Assembly.

PASSED AND ADOPTED by the City Council of the City of Norco at a regular meeting held February 5, 2025.
______________________
Greg Newton, Mayor
City of Norco, California
ATTEST:
___________________________
Dana Roa, CMC, City Clerk
City of Norco, California

Resolution No. 2025 - 02 – Appointment to SCAG2023 Regional Conference and General Assembly

February 5, 2025
I, Dana Roa, City Clerk of the City of Norco, California, do hereby certify that the foregoing Resolution was regularly introduced and adopted by the City Council of the City of Norco, California, at a regular meeting thereof held on February 5, 2025, by the following vote of the City Council:

AYES:

NOES:

ABSENT:

ABSTAIN:

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the City of Norco, California on February 5, 2025.
___________________________
Dana Roa, CMC, City Clerk
City of Norco, California

City Council

STAFF REPORT
Date: February 5, 2025 Agenda Item:

3.H.

To: Honorable Mayor and City Council Members
From: Chad Blais, Public Works Director
Prepared By: Chad Blais, Public Works Director
Department: Public Works
SUBJECT:

Acceptance of Bids and Award of Contract for the 2024-25 Slurry Seal and Veterans Way Improvement Project
RECOMMENDATION:

Accept the bids and award a contract for the 2024-25 Slurry Seal and Veterans Way Improvement Project to American Asphalt South, Inc. in the amount of $268,613; and authorize the City Manager to approve contract change orders up to 10 percent of the total bid amount.

SUMMARY:

Bids for FY 2024-25 Slurry Seal and Veterans Way Improvement Project were opened on January 22, 2025, with American Asphalt South, Inc. of Riverside, California being the lowest responsible bidder. Therefore, it is recommended that a contract be awarded to American Asphalt South, Inc. in the amount of $268,613; and authorize the City Manager to approve contract change orders up to 10 percent of the total bid amount.

BACKGROUND:

Plans and specifications for the FY 2024-25 Slurry Seal and Veterans Way Improvement Project were advertised on December 12, 2024, with a bid opening date of January 22, 2025. A total of six (6) bids were received with proposals ranging in value from $268,613 to $400,000. The bid summary analysis has been attached for Council’s review (Bid Summary Analysis). The FY 2024-25 Slurry Seal and Veterans Way Improvement Project entails the construction of new slurry placement in various locations and roadway improvements to Veterans Way (see Project Exhibit).

Slurry seal is applied in order to help preserve and protect the underlying pavement structure and provide a new driving surface. Roads selected for slurry seal treatment generally chosen based on having low to moderate distress and narrow crack width.

Staff has reviewed all the bids submitted and determined that American Asphalt South, Inc. of Riverside, California as being the lowest responsible bidder in the amount of $268,613 (see Bid in the Contract). Staff has reviewed the references of the lowest bidder and bid documents submitted and determined the bid is responsive to all requirements and the contractor has the experience to complete the required construction activities for the FY 2024-25 Slurry Seal and Veterans Way Improvement Project.

FISCAL IMPACT:

The FY 2024-25 Slurry Seal Project has an approved design and construction budget of $300,000 (Street Fund 149 - Project No. 4902.1; Account No. 149.930.43160) and the Veterans Way Improvement Project has a budget of $50,000 (Measure R Fund 132 - Project No. 54410.8; Account No. 132.940.43130). There is sufficient funding to cover the lowest bidder bid amount, the 10% contingency, and an estimated $20,000 for inspection services.

RELATIONSHIP TO STRATEGIC PLAN:

This item is consistent with Strategic Direction #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):

Bid Summary - FY 2024-25 Slurry Seal
Project Exhibit
American Asphalt South Contract

City of Norco
Bid Results for Project FY 2024-25 Slurry Seal Project (4902.1) Issued on 12/12/2024
Bid Due on January 22, 2025 11:00 AM (PST)
Exported on 01/22/2025
Line Totals (Unit Price * Quantity)
Item Description Unit Qty Unit Price Line Total Unit Price Line Total Street Slurry
1 Application of Quick Set Emulsion Aggregate Slurry
Type II (Cationic) with 2 ½ Percent Latex Additive
including crack sealing, weed abatement, mobilization,
demobilization, for public streets at ELT 385 $364.90 $140,486.50 $402.43 $154,935.55 2 Local Full Depth Pavement Repairs at SF 5,000 $8.50 $42,500.00 $8.52 $42,600.00 3 Thermoplastic Striping & Pavement Markers for Public
Streets at LS 1 $26,235.00 $26,235.00 $16,874.00 $16,874.00 Subtotal $209,221.50 $214,409.55
Veterans Way
4 Application of Quick Set Emulsion Aggregate Slurry
Type II (Cationic) with 2 ½ Percent Latex Additive
including crack sealing, weed abatement, mobilization,
demobilization, for public streets at ELT 15 $364.90 $5,473.50 $402.43 $6,036.45 5 Local Full Depth Pavement Repairs at SF 4,400 $8.50 $37,400.00 $8.52 $37,488.00 6 Thermoplastic Striping & Pavement Markers for Public
Streets at LS 1 $5,280.00 $5,280.00 $11,195.00 $11,195.00 7 4” AC Berm at LF 725 $15.50 $11,237.50 $15.40 $11,165.00 Subtotal $59,391.00 $65,884.45
Total $268,612.50 $280,294.00
American Asphalt South, Inc. Roy Allan Slurry Seal, Inc.

City of Norco
Bid Results for Project FY 2024-25 Slurry Seal Project (4902.1) Issued on 12/12/2024
Bid Due on January 22, 2025 11:00 AM (PST)
Exported on 01/22/2025
Line Totals (Unit Price * Quantity)
Item Description Unit Qty
Street Slurry
1 Application of Quick Set Emulsion Aggregate Slurry
Type II (Cationic) with 2 ½ Percent Latex Additive
including crack sealing, weed abatement, mobilization,
demobilization, for public streets at ELT 385
2 Local Full Depth Pavement Repairs at SF 5,000
3 Thermoplastic Striping & Pavement Markers for Public
Streets at LS 1
Subtotal
Veterans Way
4 Application of Quick Set Emulsion Aggregate Slurry
Type II (Cationic) with 2 ½ Percent Latex Additive
including crack sealing, weed abatement, mobilization,
demobilization, for public streets at ELT 15
5 Local Full Depth Pavement Repairs at SF 4,400
6 Thermoplastic Striping & Pavement Markers for Public
Streets at LS 1
7 4” AC Berm at LF 725
Subtotal
Total
Unit Price Line Total Unit Price Line Total
$402.00 $154,770.00 $402.00 $154,770.00
$8.00 $40,000.00 $10.20 $51,000.00
$29,750.00 $29,750.00 $25,000.00 $25,000.00
$224,520.00 $230,770.00
$722.00 $10,830.00 $443.00 $6,645.00
$8.00 $35,200.00 $10.20 $44,880.00
$8,750.00 $8,750.00 $4,999.00 $4,999.00
$14.60 $10,585.00 $16.00 $11,600.00
$65,365.00 $68,124.00
$289,885.00 $298,894.00
Pavement Coatings Co. All American Asphalt

City of Norco
Bid Results for Project FY 2024-25 Slurry Seal Project (4902.1) Issued on 12/12/2024
Bid Due on January 22, 2025 11:00 AM (PST)
Exported on 01/22/2025
Line Totals (Unit Price * Quantity)
Item Description Unit Qty
Street Slurry
1 Application of Quick Set Emulsion Aggregate Slurry
Type II (Cationic) with 2 ½ Percent Latex Additive
including crack sealing, weed abatement, mobilization,
demobilization, for public streets at ELT 385
2 Local Full Depth Pavement Repairs at SF 5,000
3 Thermoplastic Striping & Pavement Markers for Public
Streets at LS 1
Subtotal
Veterans Way
4 Application of Quick Set Emulsion Aggregate Slurry
Type II (Cationic) with 2 ½ Percent Latex Additive
including crack sealing, weed abatement, mobilization,
demobilization, for public streets at ELT 15
5 Local Full Depth Pavement Repairs at SF 4,400
6 Thermoplastic Striping & Pavement Markers for Public
Streets at LS 1
7 4” AC Berm at LF 725
Subtotal
Total
Unit Price Line Total Unit Price Line Total
$443.00 $170,555.00 $500.00 $192,500.00
$15.50 $77,500.00 $10.00 $50,000.00
$27,000.00 $27,000.00 $87,500.00 $87,500.00
$275,055.00 $330,000.00
$889.00 $13,335.00 $500.00 $7,500.00
$8.75 $38,500.00 $8.00 $35,200.00
$5,400.00 $5,400.00 $8,450.00 $8,450.00
$22.00 $15,950.00 $26.00 $18,850.00
$73,185.00 $70,000.00
$348,240.00 $400,000.00
Mission Paving and Sealing, Inc. Hardy & Harper, Inc.

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VETERANS WAY

CA-1

CONTRACT AGREEMENT

CITY OF NORCO
CITYWIDE FY 24-25 SLURRY SEAL AND

VETERANS WAY IMPROVEMENT PROJECT

1. Parties and Date.

This Agreement is made and entered into this 5
th day of February, 2025 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 American Asphalt South, Inc.., a corporation with its principal place of business at 2990 Myers St., Riverside, CA 92503 (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 “CITYWIDE FY 24-25 SLURRY SEAL AND VETERANS WAY IMPROVEMENT PROJECT” on the terms and conditions set forth in this Agreement. Contractor represents that it is experienced in constructing street 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 “CITYWIDE FY 24-25 SLURRY SEAL AND VETERANS WAY IMPROVEMENT 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 “CITYWIDE FY 24-25 SLURRY SEAL AND VETERANS WAY IMPROVEMENT 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.

CA-2

3.1.2 Term. The terms of this Agreement shall begin at the Notice to Proceed and shall extend 45 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 Public Works, or his 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 Jeff Petty – 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.

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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 $1,000.00 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

CA-4
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.
(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.

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(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 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 involves 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,

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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 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 claimsmade 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 claims-made 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.

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(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 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, subconsultants, 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

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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 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-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 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-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 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

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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.

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

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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 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 three (3) years from the date of final payment under this Agreement.

3.5 General Provisions.

3.5.1 Termination of Agreement.

3.5.1.1 Grounds 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.

3.5.1.2 Effect 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.

3.5.1.3 Additional 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:

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Contractor:

American Asphalt South, Inc.
2990 Myers St
Riverside, CA 92503
Attention: Jeff Petty - President
City:

City of Norco
2870 Clark Avenue
Norco, CA 92860
Attention: Director of Public Works
Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the US Mail, first class postage prepaid and addressed 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. To the furthest extent allowed by law, including California Civil Code section 2782, Contractor shall indemnify, hold harmless and defend City and its officers, officials, employees, agents and volunteers from any and all loss, liability, fines, penalties, forfeitures, costs and damages (whether in contract, tort or strict liability, including but not limited to personal injury, death at any time and property damage) incurred by City, Contractor or any other person, and from any and all claims, demands and actions in law or equity (including attorney's fees and litigation expenses), arising or alleged to have arisen directly or indirectly out of performance of this Agreement. Contractor’s obligations under the preceding sentence shall apply regardless of whether City or any of its officers, officials, employees, agents or volunteers are passively negligent, but shall not apply to any loss, liability, fines, penalties, forfeitures, costs or damages caused by the active or sole negligence, or the willful misconduct, of City or any of its officers, officials, employees, agents or volunteers.

If Contractor should subcontract all or any portion of the work to be performed under this Agreement, Contractor shall require each subcontractor to indemnify, hold harmless and defend City and its officers, officials, employees, agents and volunteers in accordance with the terms of the preceding paragraph.

This section shall survive termination or expiration of this Agreement.

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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.

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.

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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.

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.

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Name of Contractor: American Asphalt South, Inc.
*By:
________________________________________________
Signature
_Jeff Petty – President______________________________
Name and Title
OWNER: CITY OF NORCO, a municipal corporation
*By:
________________________________________________
- Mayor
ATTEST:
________________________________________________
Dana Roa, CMC, City Clerk
APPROVED AS TO FORM:
________________________________________________
Colin Burns, City Attorney

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EXHIBIT A
CITYWIDE FY 24-25 SLURRY SEAL AND

VETERANS WAY IMPROVEMENT PROJECT
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 weed abatement, crack sealing, slurry sealing, pavement markings, localized full depth pavement repairs, AC berm, and striping on various streets in the City and all appurtenant related work to the satisfaction and acceptance of the City Engineer.

The services shall be performed in accordance with the Standard Specifications for Public Works Construction (Green Book), latest edition, including all current supplements, addenda, and revisions thereof (hereinafter referred to as “Standard Specifications”) incorporated herein by this reference. Any provisions which supplement or modify the Standard Specifications are attached hereto as Special Provisions and incorporated herein by this reference.

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EXHIBIT B
Proposal Document

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CONTRACT PERFORMANCE BOND
(CALIFORNIA PUBLIC WORK)
KNOW ALL MEN BY THESE PRESENT:

THAT WHEREAS, the City of Norco (sometimes referred to hereinafter as “Obligee”) has awarded to ___________________________________________________________ ___________________________________________________________ (hereinafter designated as the “Contractor”), an agreement for the work described as follows:

CITYWIDE FY 24-25 SLURRY SEAL AND

VETERANS WAY IMPROVEMENT PROJECT
The general items of work to be done hereunder consist of:

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 weed abatement, crack sealing, slurry sealing, pavement markings, localized full depth pavement repairs, AC berm, and striping on various streets in the City and all appurtenant related work to the satisfaction and acceptance of the City Engineer. (hereinafter referred to as the “Public Work”); and
WHEREAS, the work to be performed by the Contractor is more particularly set forth in that certain contract for the said Public Work dated ___________________, (hereinafter referred to as the "Contract"), which Contract is incorporated herein by this reference; and WHEREAS, the Contractor is required by said Contract to perform the terms thereof and to provide a bond both for the performance and guaranty thereof.

NOW, THEREFORE, we, ____________________________________________, the undersigned Contractor, as Principal, and ____________________________________ ________________________________, a corporation organized and existing under the laws of the State of____________, and duly authorized to transact business under the laws of the State of California, as Surety, are held and firmly bound unto the City of Norco in the sum of ______________________________________________________ Dollars ($ _________________), said sum being not less than 100 percent of the total amount payable by the said Obligee under the terms to the said Contract, for which amount well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors, and assigns, jointly and severally, firmly by these presents.

THE CONDITION OF THIS OBLIGATION IS SUCH, that if the bounden Contractor, his or its heirs, executors, administrators, successors, or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and agreements in

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the said Contract and any alteration thereof made as therein provided, on his or its parts, to be kept and performed at the time and in the manner therein specified, and in all respects according to their intent and meaning; and shall faithfully fulfill the one year guarantee of all materials and workmanship; and indemnify and save harmless the Obligee, its officers and agents, as stipulated in said Contract, then this obligation shall become null and void; otherwise it shall be and remain in full force and effect.

The said Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of the Contract or to the work to be performed thereunder or the Specifications accompanying the same shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration of addition to the terms of the Contract, or to the work or to the Specifications.

No final settlement between the Obligee and the Contractor shall abridge the right of any beneficiary hereunder, whose claim may be unsatisfied.

Contractor and Surety agree that if the Obligee is required to engage the services of an attorney in connection with enforcement of the bond, each shall pay Obligee's reasonable attorney's fees incurred, with or without suit, in addition to the above sum.

IN WITNESS WHEREOF, we have hereunto set our hands and seals this ____ day of _________, 2025.

PRINCIPAL/CONTRACTOR:
_________________________________
By: ______________________________
SURETY:
_________________________________
By: ______________________________
Attorney-in-Fact

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The rate of premium on this bond is _________________________ per thousand.

The total amount of premium charged: $_____________________________________ (The above must be filled in by corporate surety).

IMPORTANT: Surety companies executing bonds must possess a certificate of authority from the California Insurance Commissioner authorizing them to write surety insurance defined in Section 105 of the California Insurance Code, and if the work or project is financed, in whole or in part, with Federal, grant, or loan funds, it must also appear on the Treasury Department’s most current list (Circular 570 as amended). THIS IS A REQUIRED FORM.

Any claims under this bond may be addressed to:
(Name and Address of Surety) ________________________________ ________________________________
________________________________
(Name and Address of Agent or ________________________________ Representative for service of
process in California if ________________________________ different from above)
________________________________
(Telephone Number of Surety and ________________________________ Agent or Representative for
service of process in California) ________________________________ ________________________________

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STATE OF CALIFORNIA )
) ss.

COUNTY OF )
On this ____ day of ___________, in the year _________, before me, ______________________, a Notary Public in and for said State, personally appeared ____________________________, known to me to be the person whose name is subscribed to the within instrument as the Attorney-in-Fact of the _________________________ (Surety) and acknowledged to me that he subscribed the name of the ______________________________ (Surety) thereto and his own name as Attorney-in-Fact.

Notary Public in and for said State
(SEAL)
Commission expires:______________________________
NOTE:

A copy of the Power of Attorney to local representatives of the bonding company must be attached hereto.

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PAYMENT BOND
(CALIFORNIA PUBLIC WORK)
KNOW ALL MEN BY THESE PRESENT:

THAT WHEREAS, the City of Norco (sometimes referred to hereinafter as Obligee” has awarded to ____________________________________________________________ __________________________________(hereinafter designated as the “Contractor”), an agreement dated________________________________, described as follows:

CITYWIDE FY 24-25 SLURRY SEAL AND

VETERANS WAY IMPROVEMENT PROJECT
The general items of work to be done hereunder consist of:

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 weed abatement, crack sealing, slurry sealing, pavement markings, localized full depth pavement repairs, AC berm, and striping on various streets in the City and all appurtenant related work to the satisfaction and acceptance of the City Engineer. (hereinafter referred to as the “Contract”) and
WHEREAS, said Contractor is required to furnish a bond in connection with said Contract and pursuant to Section 3247 of the California Civil Code; NOW, THEREFORE, We, _______________________________________________, the undersigned Contractor, as Principal; and __________________________________ _______________________________________________________________________ a corporation organized and existing under the laws of the State of __________________, and duly authorized to transact business under the laws of the State of California, as Surety, are held and firmly bound unto the City of Norco and to any and all persons, companies, or corporations entitled to file stop notices under Section 3181 of the California Civil Code, in the sum of _________________________________________________ Dollars ($ _________________), said sum being not less than 100 percent of the total amount payable by the said Obligee under the terms of the said Contract, for which payment will and truly to be made, we bind ourselves, our heirs, executors, administrators, successors, and assigns, jointly and severally, firmly by these presents.

THE CONDITION OF THIS OBLIGATION IS SUCH, that, if said Contractor, his or its heirs, executors, administrators, successors, or assigns, or Subcontractors, shall fail to pay for any materials, provisions or other supplies, implements, machinery, or power used in, upon, for, or about the performance of the Public Work contracted to be done, or to pay any person for any work or labor of any kind, or for bestowing skills or other necessary services

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thereon, or for amounts due under the Unemployment Insurance Code with respect to such work or labor, or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department from the wages of employees of paid Contractor and his Subcontractors pursuant to Section 13020 of the Unemployment Insurance Code with respect to such work and labor as required by the provisions of Section 3247 through 3252 of the Civil Code, the Surety or Sureties hereon will pay for the same in an amount not exceeding the sum specified in this bond, otherwise the above obligation shall be void.

In addition to the provisions herein above, it is agreed that this bond will insure to the benefit of any and all persons, companies, and corporations entitled to serve stop notices under Section 3181 of the Civil Code, so as to give a right of action to them or their assigns in any suit brought upon this bond.

The Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration, or additions to the terms of the said Contract or to the work to be performed thereunder or the Specifications accompanying the same shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration, or addition to the terms of the Contract or to the work or to the Specifications.

No final settlement between the Obligee and the Contractor hereunder shall abridge the right of any beneficiary hereunder, whose claim may be unsatisfied.

Contractor and Surety agree that if the Obligee is required to engage the services of an attorney in connection with the enforcement of this bond, each shall pay Obligee’s reasonable attorney’s fees incurred, with or without suit, in addition to the above sum.

IN WITNESS WHEREOF, we have hereunto set our hands and seals this _____day of_______________, 2025.

PRINCIPAL/CONTRACTOR:
_____________________________________
By: __________________________________
SURETY:
_____________________________________
By: __________________________________
Attorney-in-Fact

CA-23
The rate of premium on this bond is ________________________ per thousand.

The total amount of premium charged: $ _____________________________________ (The above must be filled in by corporate Surety).

IMPORTANT: Surety companies executing bonds must possess a certificate of authority from the California Insurance Commissioner authorizing them to write surety insurance defined in Section 105 of the California Insurance Code, and if the work or project is financed, in whole or in part, with Federal, grant, or loan funds, it must also appear on the Treasury Department’s most current list (Circular 570 as amended). THIS IS A REQUIRED FORM.

Any claims under this bond may be addressed to:
(Name and Address of Surety) _______________________________ _______________________________
_______________________________
(Name and Address of Agent or _______________________________ Representative for service of
process in California if _______________________________ different from above)
_______________________________
(Telephone Number of Surety and _______________________________ Agent or Representative for
service of process in California _______________________________ _______________________________

CA-24

STATE OF CALIFORNIA )
) ss.

COUNTY OF )
On this ________ day of _________________, in the year _________, before me, ________________________, a Notary Public in and for said State, personally appeared _____________________________, known to me to be the person whose name is subscribed to the within instrument as the Attorney-in-Fact of the _____ ___________________ (Surety) and acknowledged to me that he subscribed the name of the _________________________________ (Surety) thereto and his own name as Attorney-in-Fact.
_____________________________________
Notary Public in and for said State
(SEAL)
Commission expires:________________________
NOTE:

A copy of the Power of Attorney to local representatives of the bonding company must be attached hereto.

CA-25

GENERAL LIABILITY ENDORSEMENT

CITY OF NORCO
2870 Clark Avenue
Norco, CA 92860
(951) 270-5627
A. POLICY INFORMATION Endorsement # ________________________

1. Insurance Company ____________________________________________ Policy Number _____________________

2. Policy Term (From) _______________ (To)________________ Endorsement Effective Date ______________________________________

3. Named Insured _______________________________________________

4. Address of Named Insured
_____________________________________________________________ _____________________________________________________________

5. Limit of Liability Any One Occurrence/Aggregate
$______________________________ /_____________________________

6. Deductible or Self-Insured Retention (Nil unless otherwise specified):
______________________________________________

7. Coverage is equivalent to:

Comprehensive General Liability Form GL0002 (Ed. 1/73)
______________________________________________
Commercial General Liability “Occurrence” Form CG0001
______________________________________________

8. Bodily Injury and Property Damage Coverage is:
____________________________________”occurrence”
Note: The City of Norco standard insurance requirements specify “occurrence” coverage. “Claims-made” coverage is not acceptable. If commercial general liability form or equivalent is used, the general aggregate must apply separately to this location/project or the general aggregate must be twice the occurrence limit.

CA-26

9. Description of Project:

CITYWIDE FY 24-25 SLURRY SEAL AND

VETERANS WAY IMPROVEMENT PROJECT
The general items of work to be done hereunder consist of:

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 weed abatement, crack sealing, slurry sealing, pavement markings, localized full depth pavement repairs, AC berm, and striping on various streets in the City and all appurtenant related work to the satisfaction and acceptance of the City Engineer.

B. POLICY AMENDMENTS
This endorsement is issued in consideration of the policy premium. Notwithstanding any inconsistent statement in the policy to which this endorsement is attached or any other endorsement attached thereto, it is agreed as follows:

1. INSURED. As respects any work performed on the above described Project, the City of Norco, its elected or appointed officers, officials, employees, consulting engineers, and volunteers are included as insured with regard to damages and defense of claims arising from: (a) activities performed by or on behalf of the Named Insured, (b) products and completed operations of the Named Insured, or (c) premises owned, leased, or used by the Named Insured.

2. CONTRIBUTION NOT REQUIRED. As respects: (a) work performed by the Named Insured on the above described Project for or on behalf of the City of Norco; or (b) products sold by the Named Insured to the City of Norco for use on the Project; or (c) premises leased by the Named Insured from the City of Norco, the insurance afforded by this policy shall be primary insurance as respects the City of Norco, its elected or appointed officers, officials, employees, consulting engineers, or volunteers; or stand in an unbroken chain of coverage excess of the Named Insured’s schedule underlying primary coverage. In either event, any other insurance maintained by the City of Norco, its elected or appointed officers, officials, employees, consulting engineers, or volunteers shall be in excess of this insurance and shall not contribute with it.

3. SCOPE OF COVERAGE. This policy, if primary, affords coverage at least as broad as:
(1) Insurance Services Office Form Number GL 0002 (Ed. 1/73), Comprehensive General Liability Insurance and Insurance Services Office form number GL 0404 Broad Form Comprehensive General Liability endorsement; or

CA-27
(2) Insurance Services Office Commercial General Liability Coverage, “Occurrence” Form CG 0001; or
(3) If excess, affords coverage which is at least as broad as the primary insurance forms referenced in the preceding Sections (1) and (2).

4. SEVERABILITY OF INTEREST. The insurance afforded by this policy applies separately to each insured who is seeking coverage or against whom a claim is made or a suit is brought, except with respects to the Company’s limit of liability.

5. PROVISIONS REGARDING THE INSURED’S DUTIES AFTER ACCIDENT OR LOSS. Any failure to comply with reporting provisions of the policy shall not affect coverage provided to the City of Norco, its elected or appointed officer, officials, employees, consulting engineers or volunteers.

6. CANCELLATION NOTICE. The insurance afforded by this policy shall not be suspended, voided, canceled, reduced in coverage or in limits except after 30 days prior written notice by certified mail return receipt requested has been given to the City of Norco. Such notice shall be addressed as shown in the heading of this endorsement.

C. INCIDENT AND CLAIM REPORTING PROCEDURE
Incidents and claims are to be reported to the insurer at:

ATTN:
_____________________________________________________________________ (Title) (Department)
_____________________________________________________________________ (Company)
_____________________________________________________________________ (Street Address)
_____________________________________________________________________ (City) (State) (Zip Code)
______________________________
(Telephone Number)

CA-28
D. SIGNATURE OF INSURER OR AUTHORIZED REPRESENTATIVE OF THE

INSURER
I, __________________________, warrant that I have authority to (Print/Type Name)
bind the below-listed insurance company and by my signature hereon do so bind this company.
____________________________________________

SIGNATURE OF AUTHORIZED REPRESENTATIVE
(Original Signature required on endorsement furnished to the City of Norco) ORGANIZATION: _____________________________________________________ TITLE: _____________________________________________________ ADDRESS: _____________________________________________________ _____________________________________________________
TELEPHONE: _____________________________________________________

CA-29

AUTOMOBILE LIABILITY ENDORSEMENT

CITY OF NORCO
2870 Clark Avenue
Norco, CA 92860
(951) 270-5607
A. POLICY INFORMATION Endorsement #_____________________

1. Insurance Company _____________________________________________ Policy Number _____________________

2. Policy Term (From)________________(To) _______________ Endorsement Effective Date ___________

3. Named Insured________________________________________________

4. Address of Named Insured________________________________________

5. Limit of Liability Any One Occurrence/Aggregate
$______________________ /_____________________________________

6. Deductible or Self-Insured Retention
(Nil unless otherwise specified):
$____________________________________________________________ B. POLICY AMENDMENTS
This endorsement is issued in consideration of the policy premium. Notwithstanding any inconsistent statement in the policy to which this endorsement is attached or any other endorsement attached thereto, it is agreed as follows:

1. INSURED. The City of Norco, its elected or appointed officers, officials, consulting engineers, employees and volunteers are included as insured with regard to damages and defense of claims arising from: the ownership, operation, maintenance, use, loading or unloading of any auto owned, leased, hired or borrowed by the Named Insured, regardless of whether liability is attributable to the Named Insured or a combination of the Named Insured and the City of Norco, its elected or appointed officers, officials, employees, consulting engineers or volunteers.

2. CONTRIBUTION NOT REQUIRED. As respects work performed by the Named Insured for or on behalf of the City of Norco, the insurance afforded by this policy

CA-30
shall: (a) be primary insurance as respects the City of Norco, its elected or appointed officers, officials, employees, consulting engineers or volunteers; or (b) stand in an unbroken chain of coverage excess of the Named Insured’s primary coverage. In either event, any other insurance maintained by the City of Norco, its elected or appointed officers, officials, employees or volunteers shall be in excess of this insurance and shall not contribute with it.

3. SCOPE OF COVERAGE. This policy, if primary, affords coverage to the Named Insured at least as broad as:
(1) Insurance Services Office form number CA 00001 (Ed. 1/78), Code 1 (“any auto”) and endorsement CA 0025.
(2) If excess, affords coverage which is at least as broad as the primary insurance forms referenced in the preceding Section (1).

4. SEVERABILITY OF INTEREST. The insurance afforded by this policy applies separately to each insured who is seeking coverage, or against whom a claim is made or a suit is brought, except with respect to the Company’s limit of liability.

5. PROVISIONS REGARDING THE INSURED’S DUTIES AFTER ACCIDENT OR LOSS. Any failure to comply with reporting provisions of the policy shall not affect coverage provided to the City of Norco, its elected or appointed officer, officials, employees, consulting engineers or volunteers.

6. CANCELLATION NOTICE. The insurance afforded by this policy shall not be suspended, voided, canceled, reduced in coverage or in limits except after 30 days prior written notice by certified mail return receipt requested has been given to the City of Norco. Such notice shall be addressed as shown in the heading of this endorsement.

CA-31
C. INCIDENT AND CLAIM REPORTING PROCEDURE
Incidents and claims are to be reported to the insurer at:

ATTN:
_____________________________________________________________________ (Title) (Department)
_____________________________________________________________________ (Company)
_____________________________________________________________________ (Street Address)
_____________________________________________________________________ (City) (State) (Zip Code)
____________________________________________________
(Telephone Number)
D. SIGNATURE OF INSURER OR AUTHORIZED REPRESENTATIVE OF THE

INSURER
I, __________________________, warrant that I have authority to (Print/Type Name)
bind the below-listed insurance company and by my signature hereon do so bind this company.
____________________________________________

SIGNATURE OF AUTHORIZED REPRESENTATIVE
(Original Signature required on endorsement furnished to the City of Norco) ORGANIZATION: _____________________________________________________ TITLE: _____________________________________________________ ADDRESS: _____________________________________________________ _____________________________________________________
TELEPHONE: _____________________________________

CA-32
WORKER’S COMPENSATION/EMPLOYER’S LIABILITY ENDORSEMENT

CITY OF NORCO
2870 Clark Avenue
Norco, CA 92860
(951) 270-5607
A. POLICY INFORMATION Endorsement # ________________________

1. Insurance Company ____________________________________________ (“the Company”)
Policy Number _________________________________________________

2. Effective Date of this Endorsement ________________________________

3. Named Insured_________________________________________________

4. Employer’s Liability Limit (Coverage B)______________________________ _____________________________________________________________ B. POLICY AMENDMENTS
In consideration of the policy premium and notwithstanding any inconsistent statement in the policy to which this endorsement is attached or any other endorsement attached thereto, it is agreed as follows:
(1) Cancellation Notice. The insurance afforded by this policy shall not be suspended, voided, canceled, reduced in coverage or in limits except after 30 days prior written notice by certified mail return receipt requested has been given to the City of Norco. Such notice shall be addressed as shown in the heading of this endorsement.
(2) Waiver of Subrogation. The Insurance Company agrees to waive all rights of subrogation against the City of Norco, its elected or appointed officers, officials, agents and employees for losses paid under the terms of this policy which arise from work performed by the Named Insured for the City of Norco.

CA-33
C. SIGNATURE OF INSURER OR AUTHORIZED REPRESENTATIVE OF THE

INSURER
I, _______________________, warrant that I have authority to bind (Print/Type Name)
the below-listed insurance company and by my signature hereon do so bind this company.

SIGNATURE OF AUTHORIZED REPRESENTATIVE
(Original signature required on endorsement furnished to the City of Norco) ORGANIZATION: ____________________________________________________ TITLE: ____________________________________________________ ADDRESS: ____________________________________________________ TELEPHONE: ____________________________________________________

CA-34
W-9 FORM

CA-35

CA-36

CA-37

CA-38

CA-39

City Council

STAFF REPORT
Date: February 5, 2025 Agenda Item:

3.I.

To: Honorable Mayor and City Council Members
From: Chad Blais, Public Works Director
Prepared By: Chad Blais, Public Works Director
Department: Public Works
SUBJECT:

Acceptance of Bids and Award of Contract for the Third Street Improvements (Hamner Ave to Valley View Ave)
RECOMMENDATION:

Accept bids and award a contract to Eagle Paving LLC for the Third Street Improvements - Hamner Ave to Valley View Ave in the amount of $590,000 and authorize the City Manager to approve contract change orders up to 10 percent of the total bid amount.

SUMMARY:

Bids for the Third Street Improvements - Hamner Ave to Valley View Ave were opened on January 15, 2025, with Eagle Paving LLC. of Poway, California being the lowest responsible bidder.

BACKGROUND:

Plans and specifications for the Third Street Improvements - Hamner Ave to Valley View Ave were advertised on December 12, 2024, with a bid opening date of January 15, 2025. A total of six (6) bids were received with proposals ranging in value from $590,000 to $696,000. The bid summary analysis has been attached for Council’s review (See Bid Summary). The Third Street Improvements consist of pavement reconstruction, construction of curb & gutter, adjustments to manholes and valve covers, construction of curb ramps, signage & striping, video detection equipment, and all appurtenant related work to the satisfaction of the City Engineer.

Please note the project was evaluated for planting of trees and irrigation improvements in the parkway but the benefit to cost was deemed to be not fiscally practical based on similar projects previously completed.

Staff has reviewed all the bids submitted and determined Eagle Paving LLC of Poway, California as being the lowest responsible bidder in the amount of $590,000 (see Proposal included in Contract). Staff has reviewed the references of the lowest bidder and bid documents submitted and determined the bid is responsive to all requirements.

The contractor has the experience to complete the required construction activities for the Third Street Improvements and staff was satisfied with their previous work to repave various locations in 2022.

FISCAL IMPACT:

The Third Street Improvements - Hamner Ave to Valley View Ave was approved as a Capital Improvement Project (CIP) in the Measure R Fund (132) for FY 2024-25 in the amount of $1,100,000 (Project No. 54900.26 Account No. 132.930.43160 for construction and 132.930.43160.30 for design). Total costs incurred to date is $75,000 (Design). There is sufficient funding to cover the lowest bidder bid amount, the 10% contingency, and an estimated $25,000 for inspection services.

RELATIONSHIP TO STRATEGIC PLAN:

This item is consistent with Strategic Direction #5 – Infrastructure and Asset Management: Ensure timely preservation, replacement, improvement and acquisition of infrastructure and capital assets.

REVIEWED AND APPROVED BY:

Certified as to Availability of Funds: Daphne Liu, Finance Director Approved by: Lisette Free, Interim City Manager
Approved as to Form: Harper and Burns, LLP, City Attorney ATTACHMENT(S):

Bid Summary Analysis
Eagle Paving Contract

City of Norco
Bid Results for Project Third Street Improvement Project (54900.26) Issued on 12/12/2024
Bid Due on January 15, 2025 11:00 AM (PST)
Exported on 01/15/2025
Line Totals (Unit Price * Quantity)
Item Num Description
Unit of
Measure Quantity
Eagle Paving
LLC - Unit
Price
Eagle Paving
LLC - Line
Total
Wheeler
Paving Inc. -
Unit Price
Wheeler
Paving Inc. -
Line Total
1 Clearing & Grubbing,
Mobilization, NPDES/SWPPP
Requirements at _______ Per
Lump Sum LS 1 $18,383.75 $18,383.75 $21,950.00 $21,950.00 2 General Earthwork & Unclassified
Excavation at _______ Per Lump
Sum LS 1 $10,000.00 $10,000.00 $36,200.00 $36,200.00
3 Traffic Control___ Per Lump Sum LS 1 $20,000.00 $20,000.00 $16,925.00 $16,925.00 4 Compaction Testing LS 1 $33,000.00 $33,000.00 $26,075.00 $26,075.00 5 Construction Staking &
Monument Preservation LS 1 $12,705.00 $12,705.00 $25,932.00 $25,932.00 6 Caltrans Encroachment Permit
Fee at ______ Per Lump Sum LS 1 $0.00 $0.00 $0.00 $0.00 7 Install Signing & Striping _____
Per Lump Sum LS 1 $8,400.00 $8,400.00 $10,810.00 $10,810.00 8 Adjust Existing Manhole & Cover
to Finished Surface______ Per
Each Each 4 $1,150.00 $4,600.00 $3,519.00 $14,076.00
9 Adjust Existing Valve Can & Cover
to Finished Surface _____Per
Each Each 6 $300.00 $1,800.00 $287.50 $1,725.00
10 Remove Existing A.C. Pavement
& Existing A.C. Berm at
_______Per Square Foot SF 48535 $0.75 $36,401.25 $1.50 $72,802.50 11 Remove Existing Concrete
at_______Per Square Foot SF 730 $5.00 $3,650.00 $10.45 $7,628.50 12 Remove Existing Curb & Gutter at
_____Per Linear Foot LF 35 $20.00 $700.00 $41.00 $1,435.00 13 Remove & Relocate Existing
Mailbox at ______ Per Each Each 6 $1,800.00 $10,800.00 $181.60 $1,089.60 14 Remove Existing Equestrian Trail
Fence at _____ Per Linear Foot LF 170 $40.00 $6,800.00 $26.00 $4,420.00 15 Remove and Relocate Existing
Chain Link Fence at _____ Per
Linear Foot LF 17 $250.00 $4,250.00 $54.00 $918.00
16 Remove Existing Brick Pavers
at____ Per Square Foot SF 265 $10.00 $2,650.00 $9.00 $2,385.00

City of Norco
Bid Results for Project Third Street Improvement Project (54900.26) Issued on 12/12/2024
Bid Due on January 15, 2025 11:00 AM (PST)
Exported on 01/15/2025
Line Totals (Unit Price * Quantity)
Item Num Description
Unit of
Measure Quantity
Eagle Paving
LLC - Unit
Price
Eagle Paving
LLC - Line
Total
Wheeler
Paving Inc. -
Unit Price
Wheeler
Paving Inc. -
Line Total
17 Remove Existing Traffic Signal
Pull Box at _______ Each Each 11 $1,000.00 $11,000.00 $305.00 $3,355.00 18 Remove & Replace Existing
Sidewalk Panel at______Per
Square Foot SF 100 $50.00 $5,000.00 $32.50 $3,250.00
19 Remove & Replace Existing
Asphalt at Pull Box Removal
Location at _________Per Square
Foot SF 10 $400.00 $4,000.00 $484.00 $4,840.00
20 Construct 6” Class 2 AB in
Widened Areas at ________ Per
Ton TON 203 $60.00 $12,180.00 $63.50 $12,890.50
21 Construct 2.5” B-PG 64-10 at
_____ Per Ton TON 780 $133.00 $103,740.00 $134.00 $104,520.00 22 Construct 1.5” C2-PG 64-10
at________ Per Ton TON 468 $150.00 $70,200.00 $161.00 $75,348.00 23 Construct Curb Ramp per
S.P.P.W.C. Standard Plan No. 111-
5, Case & Type Per Plan Each 2 $3,500.00 $7,000.00 $3,065.00 $6,130.00 24 Construct Residential Driveway
Approach Per City of Norco
Standard Drawing No. 240. at
_______ Per Square Foot SF 770 $23.00 $17,710.00 $12.50 $9,625.00 25 Construct Residential Driveway
Approach Per City of Norco
Standard Drawing No. 245. at
____ Per Square Foot SF 685 $23.00 $15,755.00 $12.50 $8,562.50 26 Construct 6” P.C.C. Driveway
Approach at _____ Per Square
Foot SF 750 $23.00 $17,250.00 $12.50 $9,375.00
27 Construct 6" Curb and Gutter
Type C Per City of Norco
Standard Drawing No. 200.
_______ Per Linear Foot LF 725 $55.00 $39,875.00 $60.00 $43,500.00 28 Construct 8" Curb and Gutter
Type C Per City of Norco
Standard Drawing No. 200.
___________ Per Linear Foot LF 8 $200.00 $1,600.00 $87.00 $696.00

City of Norco
Bid Results for Project Third Street Improvement Project (54900.26) Issued on 12/12/2024
Bid Due on January 15, 2025 11:00 AM (PST)
Exported on 01/15/2025
Line Totals (Unit Price * Quantity)
Item Num Description
Unit of
Measure Quantity
Eagle Paving
LLC - Unit
Price
Eagle Paving
LLC - Line
Total
Wheeler
Paving Inc. -
Unit Price
Wheeler
Paving Inc. -
Line Total
29 Construct 6" A3-6 Spillout Curb &
Gutter Per S.P.P.W.C. 120-3.
_______ Per Linear Foot LF 85 $100.00 $8,500.00 $62.00 $5,270.00 30 Construct Type F HMA Dike with
Case F Backfill Per Caltrans
Standard Plan A87B __________
Per Linear Foot LF 20 $125.00 $2,500.00 $233.00 $4,660.00 31 Install Iteris, Inc. Vantage Next
Video Detection Camera on
Luminaire Mast Arm, Remove
Existing DLC at
________________ Per Lump
Sum LS 1 $60,500.00 $60,500.00 $58,950.40 $58,950.40
32 Furnish & Install PVC Equestrian
Trail Fencing Per City of Norco
Drawing No. 706. _________ Per
Linear Foot LF 142 $275.00 $39,050.00 $37.00 $5,254.00
Total $590,000.00 $600,598.00

City of Norco
Bid Results for Project Third Street Improvement Project (54900.26) Issued on 12/12/2024
Bid Due on January 15, 2025 11:00 AM (PST)
Exported on 01/15/2025
Line Totals (Unit Price * Quantity)
Item Num Description
Unit of
Measure Quantity
1 Clearing & Grubbing,
Mobilization, NPDES/SWPPP
Requirements at _______ Per
Lump Sum LS 1
2 General Earthwork & Unclassified
Excavation at _______ Per Lump
Sum LS 1
3 Traffic Control___ Per Lump Sum LS 1
4 Compaction Testing LS 1
5 Construction Staking &
Monument Preservation LS 1
6 Caltrans Encroachment Permit
Fee at ______ Per Lump Sum LS 1
7 Install Signing & Striping _____
Per Lump Sum LS 1
8 Adjust Existing Manhole & Cover
to Finished Surface______ Per
Each Each 4
9 Adjust Existing Valve Can & Cover
to Finished Surface _____Per
Each Each 6
10 Remove Existing A.C. Pavement
& Existing A.C. Berm at
_______Per Square Foot SF 48535
11 Remove Existing Concrete
at_______Per Square Foot SF 730
12 Remove Existing Curb & Gutter at
_____Per Linear Foot LF 35
13 Remove & Relocate Existing
Mailbox at ______ Per Each Each 6
14 Remove Existing Equestrian Trail
Fence at _____ Per Linear Foot LF 170
15 Remove and Relocate Existing
Chain Link Fence at _____ Per
Linear Foot LF 17
16 Remove Existing Brick Pavers
at____ Per Square Foot SF 265
All American
Asphalt - Unit
Price
All American
Asphalt -
Line Total
Hillcrest
Contracting
Inc. -
Unit Price
Hillcrest
Contracting
Inc. -
Line Total
$74,560.25 $74,560.25 $76,000.00 $76,000.00
$30,555.00 $30,555.00 $42,000.00 $42,000.00
$30,966.00 $30,966.00 $36,000.00 $36,000.00
$8,025.00 $8,025.00 $19,400.00 $19,400.00
$12,360.00 $12,360.00 $13,000.00 $13,000.00
$0.00 $0.00 $1,500.00 $1,500.00
$8,135.00 $8,135.00 $13,200.00 $13,200.00
$1,285.00 $5,140.00 $2,840.00 $11,360.00
$535.00 $3,210.00 $1,130.00 $6,780.00
$0.45 $21,840.75 $1.10 $53,388.50
$6.25 $4,562.50 $6.40 $4,672.00
$27.25 $953.75 $43.50 $1,522.50
$109.50 $657.00 $790.00 $4,740.00
$49.00 $8,330.00 $27.00 $4,590.00
$495.00 $8,415.00 $70.00 $1,190.00
$20.75 $5,498.75 $5.80 $1,537.00

City of Norco
Bid Results for Project Third Street Improvement Project (54900.26) Issued on 12/12/2024
Bid Due on January 15, 2025 11:00 AM (PST)
Exported on 01/15/2025
Line Totals (Unit Price * Quantity)
Item Num Description
Unit of
Measure Quantity
17 Remove Existing Traffic Signal
Pull Box at _______ Each Each 11
18 Remove & Replace Existing
Sidewalk Panel at______Per
Square Foot SF 100
19 Remove & Replace Existing
Asphalt at Pull Box Removal
Location at _________Per Square
Foot SF 10
20 Construct 6” Class 2 AB in
Widened Areas at ________ Per
Ton TON 203
21 Construct 2.5” B-PG 64-10 at
_____ Per Ton TON 780
22 Construct 1.5” C2-PG 64-10
at________ Per Ton TON 468
23 Construct Curb Ramp per
S.P.P.W.C. Standard Plan No. 111-
5, Case & Type Per Plan Each 2
24 Construct Residential Driveway
Approach Per City of Norco
Standard Drawing No. 240. at
_______ Per Square Foot SF 770
25 Construct Residential Driveway
Approach Per City of Norco
Standard Drawing No. 245. at
____ Per Square Foot SF 685
26 Construct 6” P.C.C. Driveway
Approach at _____ Per Square
Foot SF 750
27 Construct 6" Curb and Gutter
Type C Per City of Norco
Standard Drawing No. 200.
_______ Per Linear Foot LF 725
28 Construct 8" Curb and Gutter
Type C Per City of Norco
Standard Drawing No. 200.
___________ Per Linear Foot LF 8
All American
Asphalt - Unit
Price
All American
Asphalt -
Line Total
Hillcrest
Contracting
Inc. -
Unit Price
Hillcrest
Contracting
Inc. -
Line Total
$285.00 $3,135.00 $760.00 $8,360.00
$32.25 $3,225.00 $7.60 $760.00
$51.25 $512.50 $49.00 $490.00
$51.50 $10,454.50 $70.00 $14,210.00
$108.25 $84,435.00 $120.00 $93,600.00
$108.25 $50,661.00 $121.00 $56,628.00
$9,516.00 $19,032.00 $6,400.00 $12,800.00
$30.00 $23,100.00 $15.30 $11,781.00
$22.75 $15,583.75 $15.20 $10,412.00
$19.25 $14,437.50 $15.20 $11,400.00
$108.75 $78,843.75 $47.50 $34,437.50
$327.75 $2,622.00 $48.00 $384.00

City of Norco
Bid Results for Project Third Street Improvement Project (54900.26) Issued on 12/12/2024
Bid Due on January 15, 2025 11:00 AM (PST)
Exported on 01/15/2025
Line Totals (Unit Price * Quantity)
Item Num Description
Unit of
Measure Quantity
29 Construct 6" A3-6 Spillout Curb &
Gutter Per S.P.P.W.C. 120-3.
_______ Per Linear Foot LF 85
30 Construct Type F HMA Dike with
Case F Backfill Per Caltrans
Standard Plan A87B __________
Per Linear Foot LF 20
31 Install Iteris, Inc. Vantage Next
Video Detection Camera on
Luminaire Mast Arm, Remove
Existing DLC at
________________ Per Lump
Sum LS 1
32 Furnish & Install PVC Equestrian
Trail Fencing Per City of Norco
Drawing No. 706. _________ Per
Linear Foot LF 142
Total
All American
Asphalt - Unit
Price
All American
Asphalt -
Line Total
Hillcrest
Contracting
Inc. -
Unit Price
Hillcrest
Contracting
Inc. -
Line Total
$139.00 $11,815.00 $45.50 $3,867.50
$25.25 $505.00 $162.00 $3,240.00
$56,822.00 $56,822.00 $59,000.00 $59,000.00
$74.50 $10,579.00 $65.00 $9,230.00
$608,972.00 $621,480.00

City of Norco
Bid Results for Project Third Street Improvement Project (54900.26) Issued on 12/12/2024
Bid Due on January 15, 2025 11:00 AM (PST)
Exported on 01/15/2025
Line Totals (Unit Price * Quantity)
Item Num Description
Unit of
Measure Quantity
1 Clearing & Grubbing,
Mobilization, NPDES/SWPPP
Requirements at _______ Per
Lump Sum LS 1
2 General Earthwork & Unclassified
Excavation at _______ Per Lump
Sum LS 1
3 Traffic Control___ Per Lump Sum LS 1
4 Compaction Testing LS 1
5 Construction Staking &
Monument Preservation LS 1
6 Caltrans Encroachment Permit
Fee at ______ Per Lump Sum LS 1
7 Install Signing & Striping _____
Per Lump Sum LS 1
8 Adjust Existing Manhole & Cover
to Finished Surface______ Per
Each Each 4
9 Adjust Existing Valve Can & Cover
to Finished Surface _____Per
Each Each 6
10 Remove Existing A.C. Pavement
& Existing A.C. Berm at
_______Per Square Foot SF 48535
11 Remove Existing Concrete
at_______Per Square Foot SF 730
12 Remove Existing Curb & Gutter at
_____Per Linear Foot LF 35
13 Remove & Relocate Existing
Mailbox at ______ Per Each Each 6
14 Remove Existing Equestrian Trail
Fence at _____ Per Linear Foot LF 170
15 Remove and Relocate Existing
Chain Link Fence at _____ Per
Linear Foot LF 17
16 Remove Existing Brick Pavers
at____ Per Square Foot SF 265
R.J. NOBLE

COMPANY -
Unit Price
R.J. NOBLE

COMPANY -
Line Total
Onyx Paving
Company, Inc. -
Unit Price
Onyx Paving
Company, Inc. -
Line Total
$47,000.00 $47,000.00 $33,000.00 $33,000.00
$22,500.00 $22,500.00 $99,000.00 $99,000.00
$12,350.00 $12,350.00 $66,000.00 $66,000.00
$5,700.00 $5,700.00 $13,000.00 $13,000.00
$12,700.00 $12,700.00 $13,000.00 $13,000.00
$0.00 $0.00 $11,000.00 $11,000.00
$8,300.00 $8,300.00 $9,000.00 $9,000.00
$2,000.00 $8,000.00 $3,000.00 $12,000.00
$165.00 $990.00 $1,000.00 $6,000.00
$0.89 $43,196.15 $0.66 $32,033.10
$5.50 $4,015.00 $8.00 $5,840.00
$28.50 $997.50 $28.00 $980.00
$1,100.00 $6,600.00 $1,111.00 $6,666.00
$5.90 $1,003.00 $22.00 $3,740.00
$627.00 $10,659.00 $333.00 $5,661.00
$5.50 $1,457.50 $6.00 $1,590.00

City of Norco
Bid Results for Project Third Street Improvement Project (54900.26) Issued on 12/12/2024
Bid Due on January 15, 2025 11:00 AM (PST)
Exported on 01/15/2025
Line Totals (Unit Price * Quantity)
Item Num Description
Unit of
Measure Quantity
17 Remove Existing Traffic Signal
Pull Box at _______ Each Each 11
18 Remove & Replace Existing
Sidewalk Panel at______Per
Square Foot SF 100
19 Remove & Replace Existing
Asphalt at Pull Box Removal
Location at _________Per Square
Foot SF 10
20 Construct 6” Class 2 AB in
Widened Areas at ________ Per
Ton TON 203
21 Construct 2.5” B-PG 64-10 at
_____ Per Ton TON 780
22 Construct 1.5” C2-PG 64-10
at________ Per Ton TON 468
23 Construct Curb Ramp per
S.P.P.W.C. Standard Plan No. 111-
5, Case & Type Per Plan Each 2
24 Construct Residential Driveway
Approach Per City of Norco
Standard Drawing No. 240. at
_______ Per Square Foot SF 770
25 Construct Residential Driveway
Approach Per City of Norco
Standard Drawing No. 245. at
____ Per Square Foot SF 685
26 Construct 6” P.C.C. Driveway
Approach at _____ Per Square
Foot SF 750
27 Construct 6" Curb and Gutter
Type C Per City of Norco
Standard Drawing No. 200.
_______ Per Linear Foot LF 725
28 Construct 8" Curb and Gutter
Type C Per City of Norco
Standard Drawing No. 200.
___________ Per Linear Foot LF 8
R.J. NOBLE

COMPANY -
Unit Price
R.J. NOBLE

COMPANY -
Line Total
Onyx Paving
Company, Inc. -
Unit Price
Onyx Paving
Company, Inc. -
Line Total
$291.00 $3,201.00 $1,000.00 $11,000.00
$15.00 $1,500.00 $18.00 $1,800.00
$55.00 $550.00 $18.00 $180.00
$92.00 $18,676.00 $69.00 $14,007.00
$156.00 $121,680.00 $123.00 $95,940.00
$153.00 $71,604.00 $123.00 $57,564.00
$9,800.00 $19,600.00 $8,400.00 $16,800.00
$21.00 $16,170.00 $22.00 $16,940.00
$21.00 $14,385.00 $22.00 $15,070.00
$21.00 $15,750.00 $24.00 $18,000.00
$106.00 $76,850.00 $69.00 $50,025.00
$152.00 $1,216.00 $88.00 $704.00

City of Norco
Bid Results for Project Third Street Improvement Project (54900.26) Issued on 12/12/2024
Bid Due on January 15, 2025 11:00 AM (PST)
Exported on 01/15/2025
Line Totals (Unit Price * Quantity)
Item Num Description
Unit of
Measure Quantity
29 Construct 6" A3-6 Spillout Curb &
Gutter Per S.P.P.W.C. 120-3.
_______ Per Linear Foot LF 85
30 Construct Type F HMA Dike with
Case F Backfill Per Caltrans
Standard Plan A87B __________
Per Linear Foot LF 20
31 Install Iteris, Inc. Vantage Next
Video Detection Camera on
Luminaire Mast Arm, Remove
Existing DLC at
________________ Per Lump
Sum LS 1
32 Furnish & Install PVC Equestrian
Trail Fencing Per City of Norco
Drawing No. 706. _________ Per
Linear Foot LF 142
Total
R.J. NOBLE

COMPANY -
Unit Price
R.J. NOBLE

COMPANY -
Line Total
Onyx Paving
Company, Inc. -
Unit Price
Onyx Paving
Company, Inc. -
Line Total
$102.00 $8,670.00 $88.00 $7,480.00
$262.00 $5,240.00 $55.00 $1,100.00
$58,400.00 $58,400.00 $55,117.90 $55,117.90
$137.00 $19,454.00 $111.00 $15,762.00
$638,414.15 $696,000.00

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CONTRACT AGREEMENT

CITY OF NORCO

THIRD STREET IMPROVEMENTS

1. Parties and Date.

This Agreement is made and entered into this 5
th day of February, 2025 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 Eagle Paving LLC., a corporation with its principal place of business at 13915 Danielson Street Suite 201, Poway, CA 92064 (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 “THIRD STREET IMPROVEMENTS FROM HAMNER AVE TO VALLEY VIEW AVE” on the terms and conditions set forth in this Agreement. Contractor represents that it is experienced in constructing street 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 “THIRD STREET IMPROVEMENTS FROM HAMNER AVE TO VALLEY VIEW AVE” (“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 “THIRD STREET IMPROVEMENTS FROM HAMNER AVE TO VALLEY VIEW AVE ". 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 45 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 Public Works, or his 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 Joel Batule – 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.

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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 $1,000.00 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.

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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.
(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.

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(Only required if 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 involves 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

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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 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 claimsmade 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 claims-made 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.

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(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 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, subconsultants, 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

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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 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-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 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-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 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

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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.

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

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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 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 three (3) years from the date of final payment under this Agreement.

3.5 General Provisions.

3.5.1 Termination of Agreement.

3.5.1.1 Grounds 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.

3.5.1.2 Effect 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.

3.5.1.3 Additional 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:

Eagle Paving LLC
13915 Danielson Street, Suite 201

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Poway, CA 92064
Attention: Joel Batule - President
City:

City of Norco
2870 Clark Avenue
Norco, CA 92860
Attention: Director of Public Works
Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the US Mail, first class postage prepaid and addressed 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. To the furthest extent allowed by law, including California Civil Code section 2782, Contractor shall indemnify, hold harmless and defend City and its officers, officials, employees, agents and volunteers from any and all loss, liability, fines, penalties, forfeitures, costs and damages (whether in contract, tort or strict liability, including but not limited to personal injury, death at any time and property damage) incurred by City, Contractor or any other person, and from any and all claims, demands and actions in law or equity (including attorney's fees and litigation expenses), arising or alleged to have arisen directly or indirectly out of performance of this Agreement. Contractor’s obligations under the preceding sentence shall apply regardless of whether City or any of its officers, officials, employees, agents or volunteers are passively negligent, but shall not apply to any loss, liability, fines, penalties, forfeitures, costs or damages caused by the active or sole negligence, or the willful misconduct, of City or any of its officers, officials, employees, agents or volunteers.

If Contractor should subcontract all or any portion of the work to be performed under this Agreement, Contractor shall require each subcontractor to indemnify, hold harmless and defend City and its officers, officials, employees, agents and volunteers in accordance with the terms of the preceding paragraph.

This section shall survive termination or expiration of this Agreement.

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,

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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.

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.

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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.

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.

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Name of Contractor: Eagle Paving LLC
*By:
________________________________________________
Signature
_Joel Batule - President_____________________________
Name and Title
OWNER: CITY OF NORCO, a municipal corporation
*By:
________________________________________________
- Mayor
ATTEST:
________________________________________________
Dana Roa, CMC, City Clerk
APPROVED AS TO FORM:
________________________________________________
Colin Burns, City Attorney

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EXHIBIT A

THIRD STREET IMPROVEMENTS

FROM HAMNER AVE TO VALLEY VIEW AVE
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 pavement reconstruction, construction of curb & gutter, adjustments to manholes and valve covers, construction of curb ramps, signage & striping, video detection equipment, and all appurtenant related work to the satisfaction of the City Engineer.

The services shall be performed in accordance with the Standard Specifications for Public Works Construction (Green Book), latest edition, including all current supplements, addenda, and revisions thereof (hereinafter referred to as “Standard Specifications”) incorporated herein by this reference. Any provisions which supplement or modify the Standard Specifications are attached hereto as Special Provisions and incorporated herein by this reference.

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EXHIBIT B
Proposal Document